N-30D 1 a37896nv30d.htm PACIFIC LIFE SEP ACCT A PL nv30d
 

     
December 31, 2007   •  Pacific Select Fund
•  Separate Account A of
   Pacific Life Insurance Company

 

Annual
Reports

 

Pacific Select    

 


 

TABLE OF CONTENTS
         
PACIFIC SELECT FUND
       
         
Chairman’s Letter
    A-1  
Performance Discussion
    A-2  
Disclosure of Fund Expenses
    B-1  
Schedules of Investments and Notes
    C-1  
Financial Statements:
       
Statements of Assets and Liabilities
    D-1  
Statements of Operations
    D-7  
Statements of Changes in Net Assets
    D-13  
Statement of Cash Flows
    D-19  
Financial Highlights
    E-1  
Notes to Financial Statements
    F-1  
Report of Independent Registered Public Accounting Firm
    G-1  
Trustees and Officers Information
    H-1  
Approval of Investment Advisory Agreement and Portfolio Management Agreements
    H-4  
Special Meeting of Shareholders
    H-8  
Where to Go for More Information
    H-9  

The 2007 Annual Report for the American Funds® Insurance Series (“AFIS”) will be mailed separately to all Pacific Life Insurance Company and Pacific Life & Annuity Company variable life insurance policyholders and variable annuity contract owners with allocations to the American Funds Growth-Income and American Funds Growth Portfolios of the Pacific Select Fund (“PSF”). For those policyholders and contract owners, the AFIS Annual Report should be read in conjunction with the PSF Annual Report included herein.
         
SEPARATE ACCOUNT A
       
         
Schedule of Investments
    I-1  
Financial Statements:
       
Statements of Assets and Liabilities
    J-1  
Statements of Operations
    J-4  
Statements of Changes in Net Assets
    J-7  
Financial Highlights
    K-1  
Notes to Financial Statements
    L-1  
Report of Independent Registered Public Accounting Firm
    M-1  

The 2007 Annual Reports for all underlying investment options other than Pacific Select Fund may be mailed separately to Pacific Life Insurance Company variable annuity contract owners with allocations to those options and should be read in conjunction with the Separate Account Annual Report included herein.

 


 

SEPARATE ACCOUNT A
SCHEDULE OF INVESTMENTS
December 31, 2007
(in thousands)
                             
Variable Accounts   Underlying Portfolios   Shares     Cost     Value  
     
 
  Pacific Select Fund                        
Small-Cap Growth (1)
  Small-Cap Growth (1)     55,499       $574,382       $738,319  
International Value
  International Value     183,277       2,736,124       3,360,809  
International Small-Cap
  International Small-Cap     91,388       937,631       974,717  
Equity Index
  Equity Index     33,738       844,446       1,135,290  
Small-Cap Index
  Small-Cap Index     81,111       985,901       1,107,943  
Diversified Research
  Diversified Research     98,946       1,106,081       1,335,914  
Equity
  Equity     7,075       114,624       156,823  
American Funds® Growth-Income
  American Funds Growth-Income     151,352       1,697,096       1,887,439  
American Funds Growth
  American Funds Growth     98,078       1,068,969       1,412,199  
Large-Cap Value
  Large-Cap Value     191,392       2,259,972       2,720,353  
Technology
  Technology     13,211       53,616       101,272  
Short Duration Bond
  Short Duration Bond     149,342       1,447,680       1,440,951  
Floating Rate Loan (2)
  Floating Rate Loan     77,230       768,142       726,661  
Diversified Bond
  Diversified Bond     194,569       1,962,246       1,901,717  
Growth LT
  Growth LT     53,547       912,431       1,397,079  
Focused 30
  Focused 30     15,739       136,003       253,743  
Health Sciences
  Health Sciences     8,697       69,903       105,015  
Mid-Cap Value
  Mid-Cap Value     229,329       3,700,188       3,935,502  
Large-Cap Growth
  Large-Cap Growth     97,458       661,896       914,277  
International Large-Cap
  International Large-Cap     297,178       2,043,785       2,821,469  
Small-Cap Value
  Small-Cap Value     33,412       396,432       481,158  
Multi-Strategy
  Multi-Strategy     13,105       184,276       234,645  
Main Street® Core
  Main Street Core     85,641       1,729,199       2,137,379  
Emerging Markets
  Emerging Markets     85,881       1,069,829       1,800,203  
Managed Bond
  Managed Bond     340,720       3,703,431       3,860,762  
Inflation Managed
  Inflation Managed     378,689       4,236,730       4,299,282  
Money Market
  Money Market     62,210       626,492       627,059  
High Yield Bond
  High Yield Bond     97,602       624,255       642,015  
Comstock
  Comstock     236,306       2,407,229       2,415,568  
Mid-Cap Growth
  Mid-Cap Growth     124,141       1,009,489       1,307,241  
Real Estate
  Real Estate     37,318       586,595       811,213  
Small-Cap Equity (3)
  Small-Cap Equity (3)     31,729       392,763       405,777  
 
                           
 
  Prudential Series Fund, Inc.                        
Jennison
  Jennison (Class II)     25       296       568  
Value
  Value (Class II)     33       498       771  
SP William Blair International Growth
  SP William Blair International Growth (Class II)     84       372       704  
SP Prudential U.S. Emerging Growth
  SP Prudential U.S. Emerging Growth (Class II)     44       279       357  
 
                           
 
  JPMorgan Insurance Trust                        
JPMorgan Insurance Trust Core Bond
  JPMorgan Insurance Trust Core Bond     100       1,074       1,141  
JPMorgan Insurance Trust Equity Index
  JPMorgan Insurance Trust Equity Index     35       351       452  
JPMorgan Insurance Trust Diversified Equity
  JPMorgan Insurance Trust Diversified Equity     8,862       160,060       162,528  
JPMorgan Insurance Trust Diversified Mid Cap Value
  JPMorgan Insurance Trust Diversified Mid Cap Value     28       310       249  
JPMorgan Insurance Trust Intrepid Growth
  JPMorgan Insurance Trust Intrepid Growth     10       117       163  
JPMorgan Insurance Trust Diversified Mid Cap Growth
  JPMorgan Insurance Trust Diversified Mid Cap Growth     9       159       194  
 
(1)   Formerly named Fasciano Small Equity Variable Account and Fasciano Small Equity Portfolio.
 
(2)   Operations commenced during 2007 (See Note 1 to Financial Statements).
 
(3)   Formerly named VN Small-Cap Value Variable Account and VN Small-Cap Value Portfolio.

American Funds is a registered trademark of American Funds Distributors, Inc., and Main Street is a registered trademark of OppenheimerFunds, Inc.
     
See Notes to Financial Statements    

I-1


 

SEPARATE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2007
(in thousands, except accumulation unit values)
                                                         
    Variable Accounts
    Small-Cap   International   International   Equity   Small-Cap   Diversified    
    Growth (1)   Value   Small-Cap   Index   Index   Research   Equity
     
ASSETS
                                                       
Investments in portfolios, at value
    $738,319       $3,360,809       $974,717       $1,135,290       $1,107,943       $1,335,914       $156,823  
Receivables:
                                                       
Due from Pacific Life Insurance Company
    58       4,235       1,991       9       1,181       1,741        
Fund shares redeemed
                                        83  
     
Total Assets
    738,377       3,365,044       976,708       1,135,299       1,109,124       1,337,655       156,906  
     
LIABILITIES
                                                       
Payables:
                                                       
Due to Pacific Life Insurance Company
                                        83  
Fund shares purchased
    58       4,235       1,991       9       1,181       1,741        
Other
    52       26       102       82       83       108       12  
     
Total Liabilities
    110       4,261       2,093       91       1,264       1,849       95  
     
NET ASSETS
    $738,267       $3,360,783       $974,615       $1,135,208       $1,107,860       $1,335,806       $156,811  
     
NET ASSETS CONSIST OF:
                                                       
Accumulation units
    $738,045       $3,359,918       $974,461       $1,134,839       $1,107,528       $1,335,493       $156,606  
Contracts in payout (annuitization) period
    222       865       154       369       332       313       205  
     
NET ASSETS
    $738,267       $3,360,783       $974,615       $1,135,208       $1,107,860       $1,335,806       $156,811  
     
Units Outstanding
    54,546       201,230       92,643       62,460       68,229       106,191       10,394  
     
Accumulation Unit Value
    $11.16-$14.69       $10.31-$18.63       $10.12-$11.80       $10.19-$23.61       $9.43-$16.91       $9.81-$12.77       $10.16-$15.93  
     
Cost of Investments
    $574,382       $2,736,124       $937,631       $844,446       $985,901       $1,106,081       $114,624  
     
                                                         
    American   American               Short        
    Funds   Funds   Large-Cap           Duration   Floating   Diversified
    Growth-Income   Growth   Value   Technology   Bond   Rate Loan   Bond
     
ASSETS
                                                       
Investments in portfolios, at value
    $1,887,439       $1,412,199       $2,720,353       $101,272       $1,440,951       $726,661       $1,901,717  
Receivables:
                                                       
Due from Pacific Life Insurance Company
    2,419       1,194       2,130       443       414       427       1,027  
     
Total Assets
    1,889,858       1,413,393       2,722,483       101,715       1,441,365       727,088       1,902,744  
     
LIABILITIES
                                                       
Payables:
                                                       
Fund shares purchased
    2,419       1,194       2,130       443       414       427       1,027  
Other
    148       71       71       8       6       85       215  
     
Total Liabilities
    2,567       1,265       2,201       451       420       512       1,242  
     
NET ASSETS
    $1,887,291       $1,412,128       $2,720,282       $101,264       $1,440,945       $726,576       $1,901,502  
     
NET ASSETS CONSIST OF:
                                                       
Accumulation units
    $1,886,747       $1,411,824       $2,719,431       $101,248       $1,440,490       $726,381       $1,901,026  
Contracts in payout (annuitization) period
    544       304       851       16       455       195       476  
     
NET ASSETS
    $1,887,291       $1,412,128       $2,720,282       $101,264       $1,440,945       $726,576       $1,901,502  
     
Units Outstanding
    150,512       101,316       191,383       11,998       137,060       74,807       183,313  
     
Accumulation Unit Value
    $10.13-$13.06       $10.82-$14.55       $10.03-$15.68       $6.78-14.00     $ 10.29-11.10       $9.68-$9.79       $10.01-$10.59  
     
Cost of Investments
    $1,697,096       $1,068,969       $2,259,972       $53,616       $1,447,680       $768,142       $1,962,246  
     
 
(1)   Formerly named Fasciano Small Equity Variable Account.
     
See Notes to Financial Statements    

J-1


 

SEPARATE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
DECEMBER 31, 2007
(in thousands, except accumulation unit values)
                                                         
    Variable Accounts
    Growth   Focused   Health   Mid-Cap   Large-Cap   International   Small-Cap
    LT   30   Sciences   Value   Growth   Large-Cap   Value
     
ASSETS
                                                       
Investments in portfolios, at value
    $1,397,079       $253,743       $105,015       $3,935,502       $914,277       $2,821,469       $481,158  
Receivables:
                                                       
Due from Pacific Life Insurance Company
          490       4       7,979       67       1,041       44  
Fund shares redeemed
    227                         390              
     
Total Assets
    1,397,306       254,233       105,019       3,943,481       914,734       2,822,510       481,202  
     
LIABILITIES
                                                       
Payables:
                                                       
Due to Pacific Life Insurance Company
    227                         390              
Fund shares purchased
          490       4       7,979             1,041       40  
Other
    65       18       6       307             41        
     
Total Liabilities
    292       508       10       8,286       390       1,082       40  
     
NET ASSETS
    $1,397,014       $253,725       $105,009       $3,935,195       $914,344       $2,821,428       $481,162  
     
NET ASSETS CONSIST OF:
                                                       
Accumulation units
    $1,396,530       $253,676       $104,980       $3,934,170       $914,108       $2,820,762       $480,888  
Contracts in payout (annuitization) period
    484       49       29       1,025       236       666       274  
     
NET ASSETS
    $1,397,014       $253,725       $105,009       $3,935,195       $914,344       $2,821,428       $481,162  
     
Units Outstanding
    72,629       15,077       7,692       204,995       98,533       219,222       24,163  
     
Accumulation Unit Value
    $11.07-$27.42       $12.31-$23.64       $10.81-$15.82       $9.28-$22.21       $8.43-$13.13       $10.46-$18.13     $ 9.86-$21.76  
     
Cost of Investments
    $912,431       $136,003       $69,903       $3,700,188       $661,896       $2,043,785       $396,432  
     
                                                         
    Multi-   Main Street   Emerging   Managed   Inflation   Money   High Yield
    Strategy   Core   Markets   Bond   Managed   Market   Bond
     
ASSETS
                                                       
Investments in portfolios, at value
    $234,645       $2,137,379       $1,800,203       $3,860,762       $4,299,282       $627,059       $642,015  
Receivables:
                                                       
Due from Pacific Life Insurance Company
          2,326       549                         117  
Fund shares redeemed
    305             392       1,240       1,311       4,037        
     
Total Assets
    234,950       2,139,705       1,801,144       3,862,002       4,300,593       631,096       642,132  
     
LIABILITIES
                                                       
Payables:
                                                       
Due to Pacific Life Insurance Company
    305             392       1,240       1,311       4,037        
Fund shares purchased
          2,326                               91  
Other
    15       142             265       328       165        
     
Total Liabilities
    320       2,468       392       1,505       1,639       4,202       91  
     
NET ASSETS
    $234,630       $2,137,237       $1,800,752       $3,860,497       $4,298,954       $626,894       $642,041  
     
NET ASSETS CONSIST OF:
                                                       
Accumulation units
    $234,192       $2,136,442       $1,800,259       $3,859,108       $4,297,571       $626,573       $641,730  
Contracts in payout (annuitization) period
    438       795       493       1,389       1,383       321       311  
     
NET ASSETS
    $234,630       $2,137,237       $1,800,752       $3,860,497       $4,298,954       $626,894       $642,041  
     
Units Outstanding
    12,855       141,484       58,327       245,486       267,549       51,227       45,260  
     
Accumulation Unit Value
    $10.15-$20.29       $10.10-$19.50       $13.07-$48.37       $10.76-$18.00       $10.76-18.37       $10.32-$13.29       $10.00-$15.50  
     
Cost of Investments
    $184,276       $1,729,199       $1,069,829       $3,703,431       $4,236,730       $626,492       $624,255  
     
     
See Notes to Financial Statements    

J-2


 

SEPARATE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
DECEMBER 31, 2007
(in thousands, except accumulation unit values)
                                                         
    Variable Accounts
                                                    SP William Blair
            Mid-Cap   Real   Small-Cap                   International
    Comstock   Growth   Estate   Equity (1)   Jennison   Value   Growth
     
ASSETS
                                                       
Investments in portfolios, at value
    $2,415,568       $1,307,241       $811,213       $405,777       $568       $771       $704  
Receivables:
                                                       
Due from Pacific Life Insurance Company
    4,132       193       1,725       429                    
     
Total Assets
    2,419,700       1,307,434       812,938       406,206       568       771       704  
     
LIABILITIES
                                                       
Payables:
                                                       
Fund shares purchased
    4,132       193       1,725       429                    
Other
    201       133       48       46                    
     
Total Liabilities
    4,333       326       1,773       475                    
     
NET ASSETS
    $2,415,367       $1,307,108       $811,165       $405,731       $568       $771       $704  
     
NET ASSETS CONSIST OF:
                                                       
Accumulation units
    $2,414,871       $1,306,872       $810,725       $405,680       $568       $771       $704  
Contracts in payout (annuitization) period
    496       236       440       51                    
     
NET ASSETS
    $2,415,367       $1,307,108       $811,165       $405,731       $568       $771       $704  
     
Units Outstanding
    211,667       121,631       30,703       29,618       46       50       37  
     
Accumulation Unit Value
    $9.38-$12.68       $9.52-$13.61       $7.55-$32.40       $10.25-$14.36       $12.25-$12.52       $15.22-$15.56       $18.68-$19.10  
     
Cost of Investments
    $2,407,229       $1,009,489       $586,595       $392,763       $296       $498       $372  
     
                                                         
                        JPMorgan       JPMorgan
                    JPMorgan   Insurance   JPMorgan   Insurance
            JPMorgan   JPMorgan   Insurance   Trust   Insurance   Trust
    SP Prudential   Insurance   Insurance   Trust   Diversified   Trust   Diversified
    U.S. Emerging   Trust   Trust   Diversified   Mid Cap   Intrepid   Mid Cap
    Growth   Core Bond   Equity Index   Equity   Value   Growth   Growth
     
ASSETS
                                                       
Investments in portfolios, at value
    $357       $1,141       $452       $162,528       $249       $163       $194  
Receivables:
                                                       
Due from Pacific Life Insurance Company
          34             52       16       11        
     
Total Assets
    357       1,175       452       162,580       265       174       194  
     
LIABILITIES
                                                       
Payables:
                                                       
Fund shares purchased
          11             52                    
Other
                      18                    
     
Total Liabilities
          11             70                    
     
NET ASSETS
    $357       $1,164       $452       $162,510       $265       $174       $194  
     
NET ASSETS CONSIST OF:
                                                       
Accumulation units
    $357       $1,163       $452       $162,510       $265       $173       $194  
Contracts in payout (annuitization) period
          1                         1        
     
NET ASSETS
    $357       $1,164       $452       $162,510       $265       $174       $194  
     
Units Outstanding
    21       103       35       12,245       19       14       13  
     
Accumulation Unit Value
    $16.63-$17.01       $11.23-$11.31       $12.85-$12.95       $13.19-$13.28       $13.57-$13.66       $12.27-$12.36       $14.72-$14.83  
     
Cost of Investments
    $279       $1,074       $351       $160,060       $310       $117       $159  
     
 
(1)   Formerly named VN Small-Cap Value Variable Account.
     
See Notes to Financial Statements    

J-3


 

SEPARATE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2007
(in thousands)
                                                 
    Variable Accounts
    Small-Cap   International   International   Equity   Small-Cap   Diversified
    Growth (1)   Value   Small-Cap   Index   Index   Research
     
INVESTMENT INCOME
                                               
Dividends
    $—       $67,718       $10,833       $21,401       $15,089       $10,041  
EXPENSES
                                               
Mortality and expense risk, administrative and other fees
    9,269       46,158       13,951       19,235       15,169       21,605  
     
Net Investment Income (Loss)
    (9,269 )     21,560       (3,118 )     2,166       (80 )     (11,564 )
     
REALIZED GAIN (LOSS) ON INVESTMENTS
                                               
Realized gain (loss) from security transactions
    (986 )     (10,017 )     (3,008 )     54,724       (4,731 )     15,110  
Capital gain distributions
          346,902                          
     
Realized Gain (Loss)
    (986 )     336,885       (3,008 )     54,724       (4,731 )     15,110  
     
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
    77,813       (290,274 )     12,248       2,214       (59,368 )     403  
     
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
    $67,558       $68,171       $6,122       $59,104       ($64,179 )     $3,949  
     
                                                 
            American Funds   American Funds   Large-Cap           Short Duration
    Equity   Growth-Income   Growth   Value   Technology   Bond
     
INVESTMENT INCOME
                                               
Dividends
    $361       $23,560       $6,244       $32,635       $46       $68,466  
EXPENSES
                                               
Mortality and expense risk, administrative and other fees
    2,605       26,684       22,312       39,409       1,348       23,681  
     
Net Investment Income (Loss)
    (2,244 )     (3,124 )     (16,068 )     (6,774 )     (1,302 )     44,785  
     
REALIZED GAIN (LOSS) ON INVESTMENTS
                                               
Realized gain (loss) from security transactions
    2,317       (2,247 )     45,365       (2,740 )     3,507       (18,236 )
Capital gain distributions
                                   
     
Realized Gain (Loss)
    2,317       (2,247 )     45,365       (2,740 )     3,507       (18,236 )
     
CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS
    7,432       40,860       116,954       42,844       12,176       17,525  
     
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
    $7,505       $35,489       $146,251       $33,330       $14,381       $44,074  
     
                                                 
    Floating   Diversified   Growth   Focused   Health   Mid-Cap
    Rate Loan (2)   Bond   LT   30   Sciences   Value
     
INVESTMENT INCOME
                                               
Dividends
    $29,669       $71,921       $6,006       $835       $—       $31,061  
EXPENSES
                                               
Mortality and expense risk, administrative and other fees
    6,954       22,105       20,844       3,164       1,588       61,157  
     
Net Investment Income (Loss)
    22,715       49,816       (14,838 )     (2,329 )     (1,588 )     (30,096 )
     
REALIZED GAIN (LOSS) ON INVESTMENTS
                                               
Realized gain (loss) from security transactions
    (1,795 )     (1,115 )     15,888       32       1,627       (8,487 )
Capital gain distributions
          3,339                          
     
Realized Gain (Loss)
    (1,795 )     2,224       15,888       32       1,627       (8,487 )
     
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
    (41,482 )     (68,765 )     176,438       53,427       13,086       (133,002 )
     
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
    ($20,562 )     ($16,725 )     $177,488       $51,130       $13,125       ($171,585 )
     
 
(1)   Formerly named Fasciano Small Equity Variable Account.
 
(2)   Operations commenced during 2007 (See Note 1 to Financial Statements).
     
See Notes to Financial Statements    

J-4


 

SEPARATE ACCOUNT A
STATEMENTS OF OPERATIONS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2007
(in thousands)
                                                 
    Variable Accounts
    Large-Cap   International   Small-Cap   Multi-   Main Street   Emerging
    Growth   Large-Cap   Value   Strategy   Core   Markets
     
INVESTMENT INCOME
                                               
Dividends
    $—       $44,385       $9,973       $6,957       $25,570       $17,434  
EXPENSES
                                               
Mortality and expense risk, administrative and other fees
    16,650       48,360       7,811       4,024       31,305       23,816  
     
Net Investment Income (Loss)
    (16,650 )     (3,975 )     2,162       2,933       (5,735 )     (6,382 )
     
REALIZED GAIN (LOSS) ON INVESTMENTS
                                               
Realized gain (loss) from security transactions
    63,149       295,985       855       8,890       (1,538 )     (8,081 )
Capital gain distributions
          435,005                         263,067  
     
Realized Gain (Loss)
    63,149       730,990       855       8,890       (1,538 )     254,986  
     
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
    150,746       (437,546 )     4,897       (3,398 )     53,204       164,936  
     
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
    $197,245       $289,469       $7,914       $8,425       $45,931       $413,540  
     
                                                 
    Managed   Inflation   Money   High Yield           Mid-Cap
    Bond   Managed   Market   Bond   Comstock   Growth
     
INVESTMENT INCOME
                                               
Dividends
    $153,143       $157,872       $31,443       $50,661       $34,133       $5,342  
EXPENSES
                                               
Mortality and expense risk, administrative and other fees
    52,440       56,643       9,849       10,261       32,592       17,833  
     
Net Investment Income (Loss)
    100,703       101,229       21,594       40,400       1,541       (12,491 )
     
REALIZED GAIN (LOSS) ON INVESTMENTS
                                               
Realized gain (loss) from security transactions
    (3,609 )     (16,600 )     175       (100 )     (2,835 )     (2,468 )
Capital gain distributions
    3,592                                
     
Realized Gain (Loss)
    (17 )     (16,600 )     175       (100 )     (2,835 )     (2,468 )
     
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
    137,618       231,741       6       (33,136 )     (165,829 )     225,547  
     
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
    $238,304       $316,370       $21,775       $7,164       ($167,123 )     $210,588  
     
                                                 
                                    SP William Blair   SP Prudential
    Real   Small-Cap                   International   U.S. Emerging
    Estate   Equity (1)   Jennison   Value   Growth   Growth
     
INVESTMENT INCOME
                                               
Dividends
    $10,400       $798       $—       $8       $2       $—  
EXPENSES
                                               
Mortality and expense risk, administrative and other fees
    14,642       4,407       10       13       11       6  
     
Net Investment Loss
    (4,242 )     (3,609 )     (10 )     (5 )     (9 )     (6 )
     
REALIZED GAIN (LOSS) ON INVESTMENTS
                                               
Realized gain (loss) from security transactions
    (2,681 )     (804 )     24       16       18       1  
Capital gain distributions
                      91       96       35  
     
Realized Gain (Loss)
    (2,681 )     (804 )     24       107       114       36  
     
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
    (160,531 )     4,656       40       (92 )     1       15  
     
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
    ($167,454 )     $243       $54       $10       $106       $45  
     
 
(1)   Formerly named VN Small-Cap Value Variable Account.
     
See Notes to Financial Statements    

J-5


 

SEPARATE ACCOUNT A
STATEMENTS OF OPERATIONS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2007
(in thousands)
                                                 
    Variable Accounts
                            JPMorgan   JPMorgan   JPMorgan
    JPMorgan   JPMorgan   JPMorgan   Insurance Trust   Insurance Trust   Insurance Trust
    Insurance Trust   Insurance Trust   Insurance Trust   Diversified   Intrepid   Diversified
    Core Bond   Equity Index   Diversified Equity   Mid Cap Value   Growth   Mid Cap Growth
     
INVESTMENT INCOME
                                               
Dividends
    $2,958       $7       $1       $5       $184       $—  
EXPENSES
                                               
Mortality and expense risk, administrative and other fees
    305       7       1,476       4       544       3  
     
Net Investment Income (Loss)
    2,653             (1,475 )     1       (360 )     (3 )
     
REALIZED GAIN (LOSS) ON INVESTMENTS
                                               
Realized gain (loss) from security transactions
    (166 )     11       (10 )     (6 )     20,867       4  
Capital gain distributions
                5       125             34  
     
Realized Gain (Loss)
    (166 )     11       (5 )     119       20,867       38  
     
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
    (1,519 )     7       2,446       (120 )     (11,419 )     (5 )
     
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
    $968       $18       $966       $—       $9,088       $30  
     
     
See Notes to Financial Statements    

J-6


 

SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
(In thousands)
                                                 
    Variable Accounts
    Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year/Period Ended
    December 31,   December 31,   December 31,   December 31,   December 31,   December 31,
    2007   2006   2007   2006   2007   2006 (2)
    Small-Cap Growth (1)   International Value   International Small-Cap
             
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                               
Net investment income (loss)
    ($9,269 )     ($5,444 )     $21,560       $4,352       ($3,118 )     ($4,842 )
Realized gain (loss)
    (986 )     22,357       336,885       68       (3,008 )     (523 )
Change in unrealized appreciation (depreciation) on investments
    77,813       11,815       (290,274 )     405,088       12,248       24,838  
             
Net Increase in Net Assets Resulting from Operations
    67,558       28,728       68,171       409,508       6,122       19,473  
             
INCREASE (DECREASE) IN NET ASSETS FROM CONTRACT OWNER TRANSACTIONS
                                               
Transfer of net premiums
    118,405       126,704       547,775       422,985       194,948       113,435  
Transfers between variable and fixed accounts, net
    202,530       (189,358 )     737,247       69,812       132,058       598,533  
Transfers—policy charges and deductions
    (5,611 )     (3,531 )     (29,503 )     (17,629 )     (7,983 )     (2,880 )
Transfers—surrenders
    (48,333 )     (31,697 )     (238,066 )     (150,688 )     (57,942 )     (21,046 )
Adjustments to net assets allocated to contracts in payout (annuitization) period
                1       1              
Transfers—other
    (43 )     13       (145 )     (70 )     (34 )     (69 )
             
Net Increase (Decrease) in Net Assets Derived from Contract Owner Transactions
    266,948       (97,869 )     1,017,309       324,411       261,047       687,973  
             
NET INCREASE (DECREASE) IN NET ASSETS
    334,506       (69,141 )     1,085,480       733,919       267,169       707,446  
             
NET ASSETS
                                               
Beginning of Year or Period
    403,761       472,902       2,275,303       1,541,384       707,446        
             
End of Year or Period
    $738,267       $403,761       $3,360,783       $2,275,303       $974,615       $707,446  
             
     
    Equity Index   Small-Cap Index   Diversified Research
             
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                               
Net investment income (loss)
    $2,166       $3,219       ($80 )     ($1,847 )     ($11,564 )     ($9,684 )
Realized gain (loss)
    54,724       54,356       (4,731 )     213,682       15,110       30,524  
Change in unrealized appreciation (depreciation) on investments
    2,214       118,568       (59,368 )     (63,390 )     403       97,181  
             
Net Increase (Decrease) in Net Assets Resulting from Operations
    59,104       176,143       (64,179 )     148,445       3,949       118,021  
             
INCREASE (DECREASE) IN NET ASSETS FROM CONTRACT OWNER TRANSACTIONS
                                               
Transfer of net premiums
    176,755       262,607       153,368       134,774       246,956       278,418  
Transfers between variable and fixed accounts, net
    (349,685 )     (201,909 )     430,744       (440,847 )     (242,258 )     174,137  
Transfers—policy charges and deductions
    (13,387 )     (16,498 )     (10,476 )     (7,210 )     (15,098 )     (11,641 )
Transfers—surrenders
    (137,799 )     (128,298 )     (98,851 )     (75,198 )     (116,777 )     (95,775 )
Adjustments to net assets allocated to contracts in payout (annuitization) period
    1       1       1       1              
Transfers—other
    19       (21 )     (48 )           25       (63 )
             
Net Increase (Decrease) in Net Assets Derived from Contract Owner Transactions
    (324,096 )     (84,118 )     474,738       (388,480 )     (127,152 )     345,076  
             
NET INCREASE (DECREASE) IN NET ASSETS
    (264,992 )     92,025       410,559       (240,035 )     (123,203 )     463,097  
             
NET ASSETS
                                               
Beginning of Year
    1,400,200       1,308,175       697,301       937,336       1,459,009       995,912  
             
End of Year
    $1,135,208       $1,400,200       $1,107,860       $697,301       $1,335,806       $1,459,009  
             
 
(1)   Formerly named Fasciano Small Equity Variable Account.
 
(2)   Operations commenced on May 1, 2006.
 
    See Notes to Financial Statements

J-7


 

SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
(In thousands)
                                                 
    Variable Accounts
    Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended
    December 31,   December 31,   December 31,   December 31,   December 31,   December 31,
    2007   2006   2007   2006   2007   2006
    Equity   American Funds Growth-Income   American Funds Growth
             
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                               
Net investment loss
    ($2,244 )     ($1,979 )     ($3,124 )     ($399 )     ($16,068 )     ($12,501 )
Realized gain (loss)
    2,317       2,460       (2,247 )     30,701       45,365       11,220  
Change in unrealized appreciation on investments
    7,432       11,409       40,860       107,421       116,954       102,539  
             
Net Increase in Net Assets Resulting from Operations
    7,505       11,890       35,489       137,723       146,251       101,258  
             
INCREASE (DECREASE) IN NET ASSETS FROM CONTRACT OWNER TRANSACTIONS
                                               
Transfer of net premiums
    2,838       2,953       353,023       315,455       301,833       375,862  
Transfers between variable and fixed accounts, net
    23,220       (19,077 )     202,440       346,089       (422,445 )     120,550  
Transfers—policy charges and deductions
    (3,407 )     (2,951 )     (16,500 )     (9,002 )     (13,240 )     (9,430 )
Transfers—surrenders
    (33,325 )     (24,453 )     (126,764 )     (74,429 )     (103,922 )     (77,862 )
Adjustments to net assets allocated to contracts in payout (annuitization) period
                                   
Transfers—other
    (5 )     (6 )     (54 )     (116 )     28       (83 )
             
Net Increase (Decrease) in Net Assets Derived from Contract Owner Transactions
    (10,679 )     (43,534 )     412,145       577,997       (237,746 )     409,037  
             
NET INCREASE (DECREASE) IN NET ASSETS
    (3,174 )     (31,644 )     447,634       715,720       (91,495 )     510,295  
             
NET ASSETS
                                               
Beginning of Year
    159,985       191,629       1,439,657       723,937       1,503,623       993,328  
             
End of Year
    $156,811       $159,985       $1,887,291       $1,439,657       $1,412,128       $1,503,623  
             
     
    Large-Cap Value   Technology   Short Duration Bond
             
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                               
Net investment income (loss)
    ($6,774 )     ($3,511 )     ($1,302 )     ($1,474 )     $44,785       $42,349  
Realized gain (loss)
    (2,740 )     196,666       3,507       5,044       (18,236 )     (5,201 )
Change in unrealized appreciation on investments
    42,844       98,555       12,176       951       17,525       6,599  
             
Net Increase in Net Assets Resulting from Operations
    33,330       291,710       14,381       4,521       44,074       43,747  
             
INCREASE (DECREASE) IN NET ASSETS FROM CONTRACT OWNER TRANSACTIONS
                                               
Transfer of net premiums
    439,811       418,934       3,749       5,327       252,185       367,902  
Transfers between variable and fixed accounts, net
    230,154       98,041       19,181       (17,564 )     (497,331 )     70,096  
Transfers—policy charges and deductions
    (29,384 )     (18,852 )     (611 )     (818 )     (20,460 )     (20,017 )
Transfers—surrenders
    (213,918 )     (154,373 )     (11,074 )     (12,457 )     (122,869 )     (125,228 )
Adjustments to net assets allocated to contracts in payout (annuitization) period
    1       1                          
Transfers—other
    (49 )     (66 )     5       11       50       (47 )
             
Net Increase (Decrease) in Net Assets Derived from Contract Owner Transactions
    426,615       343,685       11,250       (25,501 )     (388,425 )     292,706  
             
NET INCREASE (DECREASE) IN NET ASSETS
    459,945       635,395       25,631       (20,980 )     (344,351 )     336,453  
             
NET ASSETS
                                               
Beginning of Year
    2,260,337       1,624,942       75,633       96,613       1,785,296       1,448,843  
             
End of Year
    $2,720,282       $2,260,337       $101,264       $75,633       $1,440,945       $1,785,296  
             
             
See Notes to Financial Statements

J-8


 

SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
(In thousands)
                                                 
    Variable Accounts
    Year/Period Ended   Year Ended   Year Ended   Year/Period Ended   Year Ended   Year Ended
    December 31,   December 31,   December 31,   December 31,   December 31,   December 31,
    2007 (1)   2006   2007   2006 (2)   2007   2006
    Floating Rate Loan   Diversified Bond   Growth LT
             
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                               
Net investment income (loss)
    $22,715               $49,816       $13,614       ($14,838 )     ($10,140 )
Realized gain (loss)
    (1,795 )             2,224       4,389       15,888       (1,709 )
Change in unrealized appreciation (depreciation) on investments
    (41,482 )             (68,765 )     8,236       176,438       102,762  
                     
Net Increase (Decrease) in Net Assets Resulting from Operations
    (20,562 )             (16,725 )     26,239       177,488       90,913  
                     
INCREASE (DECREASE) IN NET ASSETS FROM CONTRACT OWNER TRANSACTIONS
                                               
Transfer of net premiums
    71,173               255,906       101,178       196,963       195,427  
Transfers between variable and fixed accounts, net
    718,545               1,058,810       634,783       (133,478 )     129,027  
Transfers—policy charges and deductions
    (6,548 )             (17,719 )     (4,366 )     (15,273 )     (12,532 )
Transfers—surrenders
    (35,942 )             (105,975 )     (30,393 )     (145,444 )     (113,266 )
Adjustments to net assets allocated to contracts in payout (annuitization) period
                              1       1  
Transfers—other
    (90 )             (138 )     (98 )     (21 )     (45 )
                     
Net Increase (Decrease) in Net Assets Derived from Contract Owner Transactions
    747,138               1,190,884       701,104       (97,252 )     198,612  
                     
NET INCREASE IN NET ASSETS
    726,576               1,174,159       727,343       80,236       289,525  
                     
NET ASSETS
                                               
Beginning of Year or Periods
                  727,343             1,316,778       1,027,253  
                     
End of Year or Periods
    $726,576               $1,901,502       $727,343       $1,397,014       $1,316,778  
                     
     
    Focused 30   Health Sciences   Mid-Cap Value
             
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                               
Net investment loss
    ($2,329 )     ($2,118 )     ($1,588 )     ($1,695 )     ($30,096 )     ($22,574 )
Realized gain (loss)
    32       (855 )     1,627       16,226       (8,487 )     466,208  
Change in unrealized appreciation (depreciation) on investments
    53,427       29,811       13,086       (9,126 )     (133,002 )     (66,675 )
             
Net Increase (Decrease) in Net Assets Resulting from Operations
    51,130       26,838       13,125       5,405       (171,585 )     376,959  
             
INCREASE (DECREASE) IN NET ASSETS FROM CONTRACT OWNER TRANSACTIONS
                                               
Transfer of net premiums
    12,234       10,455       4,444       6,202       752,011       712,271  
Transfers between variable and fixed accounts, net
    49,499       35,174       2,983       (14,852 )     165,526       310,055  
Transfers—policy charges and deductions
    (1,562 )     (940 )     (856 )     (1,456 )     (39,824 )     (26,491 )
Transfers—surrenders
    (27,713 )     (17,837 )     (13,931 )     (13,840 )     (313,266 )     (217,198 )
Adjustments to net assets allocated to contracts in payout (annuitization) period
                                  1  
Transfers—other
    (10 )     8       (3 )     2       (57 )     (157 )
             
Net Increase (Decrease) in Net Assets Derived from Contract Owner Transactions
    32,448       26,860       (7,363 )     (23,944 )     564,390       778,481  
             
NET INCREASE (DECREASE) IN NET ASSETS
    83,578       53,698       5,762       (18,539 )     392,805       1,155,440  
             
NET ASSETS
                                               
Beginning of Year
    170,147       116,449       99,247       117,786       3,542,390       2,386,950  
             
End of Year
    $253,725       $170,147       $105,009       $99,247       $3,935,195       $3,542,390  
             
     
(1)   Operations commenced during 2007 (See Note 1 to Financial Statements).
 
(2)   Operations commenced on May 1, 2006.
 
    See Notes to Financial Statements

J-9


 

SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
(In thousands)
                                                 
    Variable Accounts
    Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended
    December 31,   December 31,   December 31,   December 31,   December 31,   December 31,
    2007   2006   2007   2006   2007   2006
    Large-Cap Growth   International Large-Cap   Small-Cap Value
             
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                               
Net investment income (loss)
    ($16,650 )     ($16,185 )     ($3,975 )     $42,277       $2,162       $3,560  
Realized gain (loss)
    63,149       (1,463 )     730,990       139,187       855       118,517  
Change in unrealized appreciation (depreciation) on investments
    150,746       (40,813 )     (437,546 )     545,369       4,897       (45,863 )
             
Net Increase (Decrease) in Net Assets Resulting from Operations
    197,245       (58,461 )     289,469       726,833       7,914       76,214  
             
INCREASE (DECREASE) IN NET ASSETS FROM CONTRACT OWNER TRANSACTIONS
                                               
Transfer of net premiums
    198,269       312,335       595,917       821,398       64,659       70,627  
Transfers between variable and fixed accounts, net
    (839,273 )     236,154       (1,445,806 )     (342,395 )     (20,672 )     (40,409 )
Transfers—policy charges and deductions
    (10,894 )     (11,284 )     (29,823 )     (26,331 )     (5,673 )     (4,132 )
Transfers—surrenders
    (82,203 )     (87,242 )     (236,738 )     (207,921 )     (46,538 )     (38,046 )
Adjustments to net assets allocated to contracts in payout (annuitization) period
                      1              
Transfers—other
    87       (27 )     115       (152 )     (7 )     (8 )
             
Net Increase (Decrease) in Net Assets Derived from Contract Owner Transactions
    (734,014 )     449,936       (1,116,335 )     244,600       (8,231 )     (11,968 )
             
NET INCREASE (DECREASE) IN NET ASSETS
    (536,769 )     391,475       (826,866 )     971,433       (317 )     64,246  
             
NET ASSETS
                                               
Beginning of Year
    1,451,113       1,059,638       3,648,294       2,676,861       481,479       417,233  
             
End of Year
    $914,344       $1,451,113       $2,821,428       $3,648,294       $481,162       $481,479  
             
     
    Multi-Strategy   Main Street Core   Emerging Markets
             
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                               
Net investment income (loss)
    $2,933       $2,635       ($5,735 )     ($4,092 )     ($6,382 )     ($8,545 )
Realized gain (loss)
    8,890       13,218       (1,538 )     (14,764 )     254,986       209,099  
Change in unrealized appreciation (depreciation) on investments
    (3,398 )     11,273       53,204       238,550       164,936       61,008  
             
Net Increase in Net Assets Resulting from Operations
    8,425       27,126       45,931       219,694       413,540       261,562  
             
INCREASE (DECREASE) IN NET ASSETS FROM CONTRACT OWNER TRANSACTIONS
                                               
Transfer of net premiums
    7,631       5,560       341,106       357,048       269,097       271,511  
Transfers between variable and fixed accounts, net
    (9,834 )     (30,422 )     171,979       (229,341 )     (42,163 )     (242,155 )
Transfers—policy charges and deductions
    (5,023 )     (4,769 )     (23,952 )     (18,113 )     (14,665 )     (9,855 )
Transfers—surrenders
    (47,766 )     (42,172 )     (181,933 )     (140,292 )     (121,731 )     (83,825 )
Adjustments to net assets allocated to contracts in payout (annuitization) period
    2       2             1       1       1  
Transfers—other
    (7 )     4       (51 )     (28 )     88       49  
             
Net Increase (Decrease) in Net Assets Derived from Contract Owner Transactions
    (54,997 )     (71,797 )     307,149       (30,725 )     90,627       (64,274 )
             
NET INCREASE (DECREASE) IN NET ASSETS
    (46,572 )     (44,671 )     353,080       188,969       504,167       197,288  
             
NET ASSETS
                                               
Beginning of Year
    281,202       325,873       1,784,157       1,595,188       1,296,585       1,099,297  
             
End of Year
    $234,630       $281,202       $2,137,237       $1,784,157       $1,800,752       $1,296,585  
             
 
See Notes to Financial Statements

J-10


 

SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
(In thousands)
                                                 
    Variable Accounts
    Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended
    December 31,   December 31,   December 31,   December 31,   December 31,   December 31,
    2007   2006   2007   2006   2007   2006
    Managed Bond   Inflation Managed   Money Market
             
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                               
Net investment income
    $100,703       $69,495       $101,229       $69,600       $21,594       $20,556  
Realized gain (loss)
    (17 )     (19,638 )     (16,600 )     72,959       175       264  
Change in unrealized appreciation (depreciation) on investments
    137,618       36,618       231,741       (164,288 )     6       (251 )
             
Net Increase (Decrease) in Net Assets Resulting from Operations
    238,304       86,475       316,370       (21,729 )     21,775       20,569  
             
INCREASE (DECREASE) IN NET ASSETS FROM CONTRACT OWNER TRANSACTIONS
                                               
Transfer of net premiums
    487,450       524,200       602,000       570,832       193,414       191,867  
Transfers between variable and fixed accounts, net
    553,454       (108,624 )     707,210       309,250       153,889       140,552  
Transfers—policy charges and deductions
    (47,740 )     (34,107 )     (47,051 )     (31,634 )     (29,210 )     (22,297 )
Transfers—surrenders
    (308,794 )     (252,524 )     (296,746 )     (239,852 )     (366,868 )     (229,129 )
Adjustments to net assets allocated to contracts in payout (annuitization) period
    3       2       9       7       2       1  
Transfers—other
    (122 )     (36 )     (156 )     (93 )     (101 )     (66 )
             
Net Increase (Decrease) in Net Assets Derived from Contract Owner Transactions
    684,251       128,911       965,266       608,510       (48,874 )     80,928  
             
NET INCREASE (DECREASE) IN NET ASSETS
    922,555       215,386       1,281,636       586,781       (27,099 )     101,497  
             
NET ASSETS
                                               
Beginning of Year
    2,937,942       2,722,556       3,017,318       2,430,537       653,993       552,496  
             
End of Year
    $3,860,497       $2,937,942       $4,298,954       $3,017,318       $626,894       $653,993  
             
     
    High Yield Bond   Comstock   Mid-Cap Growth
             
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                               
Net investment income (loss)
    $40,400       $38,845       $1,541       $2,780       ($12,491 )     ($7,849 )
Realized gain (loss)
    (100 )     (46 )     (2,835 )     113,657       (2,468 )     12,001  
Change in unrealized appreciation (depreciation) on investments
    (33,136 )     11,860       (165,829 )     44,978       225,547       (3,781 )
             
Net Increase (Decrease) in Net Assets Resulting from Operations
    7,164       50,659       (167,123 )     161,415       210,588       371  
             
INCREASE (DECREASE) IN NET ASSETS FROM CONTRACT OWNER TRANSACTIONS
                                               
Transfer of net premiums
    73,521       89,812       405,244       270,924       196,769       127,854  
Transfers between variable and fixed accounts, net
    (38,539 )     (84,523 )     894,929       299,936       42,163       661,367  
Transfers—policy charges and deductions
    (10,269 )     (9,234 )     (21,534 )     (10,355 )     (10,768 )     (4,897 )
Transfers—surrenders
    (72,087 )     (71,892 )     (154,502 )     (84,411 )     (92,493 )     (55,399 )
Adjustments to net assets allocated to contracts in payout (annuitization) period
    2       1                          
Transfers—other
    (1 )           (104 )     (84 )     (55 )     (90 )
             
Net Increase (Decrease) in Net Assets Derived from Contract Owner Transactions
    (47,373 )     (75,836 )     1,124,033       476,010       135,616       728,835  
             
NET INCREASE (DECREASE) IN NET ASSETS
    (40,209 )     (25,177 )     956,910       637,425       346,204       729,206  
             
NET ASSETS
                                               
Beginning of Year
    682,250       707,427       1,458,457       821,032       960,904       231,698  
             
End of Year
    $642,041       $682,250       $2,415,367       $1,458,457       $1,307,108       $960,904  
             
 
See Notes to Financial Statements

J-11


 

SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
(In thousands)
                                                 
    Variable Accounts
    Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended
    December 31,   December 31,   December 31,   December 31,   December 31,   December 31,
    2007   2006   2007   2006   2007   2006
    Real Estate   Small-Cap Equity (1)   Jennison
             
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                               
Net investment income (loss)
    ($4,242 )     $13,480       ($3,609 )     ($594 )     ($10 )     ($9 )
Realized gain (loss)
    (2,681 )     151,971       (804 )     6,366       24       15  
Change in unrealized appreciation (depreciation) on investments
    (160,531 )     90,871       4,656       5,190       40       (9 )
             
Net Increase (Decrease) in Net Assets Resulting from Operations
    (167,454 )     256,322       243       10,962       54       (3 )
             
INCREASE (DECREASE) IN NET ASSETS FROM CONTRACT OWNER TRANSACTIONS
                                               
Transfer of net premiums
    165,254       161,777       65,551       19,018       2       2  
Transfers between variable and fixed accounts, net
    (84,817 )     (21,372 )     272,971       594       (12 )     (19 )
Transfers—policy charges and deductions
    (8,622 )     (6,940 )     (2,162 )     (486 )     (3 )     (4 )
Transfers—surrenders
    (86,285 )     (71,251 )     (17,664 )     (5,578 )     (27 )     (8 )
Adjustments to net assets allocated to contracts in payout (annuitization) period
    4       3                          
Transfers—other
    44       (43 )     (43 )     1              
             
Net Increase (Decrease) in Net Assets Derived from Contract Owner Transactions
    (14,422 )     62,174       318,653       13,549       (40 )     (29 )
             
NET INCREASE (DECREASE) IN NET ASSETS
    (181,876 )     318,496       318,896       24,511       14       (32 )
             
NET ASSETS
                                               
Beginning of Year
    993,041       674,545       86,835       62,324       554       586  
             
End of Year
    $811,165       $993,041       $405,731       $86,835       $568       $554  
             
     
                    SP William Blair   SP Prudential
    Value   International Growth   U.S. Emerging Growth
             
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                               
Net investment loss
    ($5 )     ($4 )     ($9 )     ($— )     ($6 )     ($5 )
Realized gain
    107       71       114       91       36       24  
Change in unrealized appreciation (depreciation) on investments
    (92 )     61       1       17       15       3  
             
Net Increase in Net Assets Resulting from Operations
    10       128       106       108       45       22  
             
INCREASE (DECREASE) IN NET ASSETS FROM CONTRACT OWNER TRANSACTIONS
                                               
Transfer of net premiums
                                   
Transfers between variable and fixed accounts, net
          (55 )     (3 )     (5 )           (2 )
Transfers—policy charges and deductions
    (6 )     (1 )     (1 )     (1 )     (1 )     (- )
Transfers—surrenders
    (28 )     (96 )     (16 )     (125 )     (1 )     (4 )
Adjustments to net assets allocated to contracts in payout (annuitization) period
                                   
Transfers—other
    1       (1 )     (1 )                  
             
Net Decrease in Net Assets Derived from Contract Owner Transactions
    (33 )     (153 )     (21 )     (131 )     (2 )     (6 )
             
NET INCREASE (DECREASE) IN NET ASSETS
    (23 )     (25 )     85       (23 )     43       16  
             
NET ASSETS
                                               
Beginning of Year
    794       819       619       642       314       298  
             
End of Year
    $771       $794       $704       $619       $357       $314  
             
     
(1)   Formerly named VN Small-Cap Value Variable Account.
 
    See Notes to Financial Statements

J-12


 

SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
(In thousands)
                                                 
    Variable Accounts
    Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended
    December 31,   December 31,   December 31,   December 31,   December 31,   December 31,
    2007   2006   2007   2006   2007   2006
    JPMorgan Insurance Trust   JPMorgan Insurance Trust   JPMorgan Insurance Trust
    Core Bond (1)   Equity Index (1)   Diversified Equity (1)
             
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                               
Net investment income (loss)
    $2,653       $4,322       $—       $—       ($1,475 )     ($1 )
Realized gain (loss)
    (166 )     (5,911 )     11       3       (5 )     7  
Change in unrealized appreciation (depreciation) on investments
    (1,519 )     1,485       7       60       2,446       13  
             
Net Increase (Decrease) in Net Assets Resulting from Operations
    968       (104 )     18       63       966       19  
             
INCREASE (DECREASE) IN NET ASSETS FROM CONTRACT OWNER TRANSACTIONS
                                               
Transfer of net premiums
    3,185       29,405       7       6       9,035       18  
Transfers between variable and fixed accounts, net
    (57,968 )     (95,391 )     (10 )     16       158,618       (56 )
Transfers—policy charges and deductions
    (426 )     (1,126 )     (3 )     (- )     (1,671 )     (- )
Transfers—surrenders
    (966 )     (3,708 )     (57 )     (31 )     (4,545 )     (26 )
Adjustments to net assets allocated to contracts in payout (annuitization) period
                                   
Transfers—other
    8       11       (1 )           (17 )      
             
Net Increase (Decrease) in Net Assets Derived from Contract Owner Transactions
    (56,167 )     (70,809 )     (64 )     (9 )     161,420       (64 )
             
NET INCREASE (DECREASE) IN NET ASSETS
    (55,199 )     (70,913 )     (46 )     54       162,386       (45 )
             
NET ASSETS
                                               
Beginning of Year
    56,363       127,276       498       444       124       169  
             
End of Year
    $1,164       $56,363       $452       $498       $162,510       $124  
             
     
    JPMorgan Insurance Trust   JPMorgan Insurance Trust   JPMorgan Insurance Trust
    Diversified Mid Cap Value (1)   Intrepid Growth (1)   Diversified Mid Cap Growth (1)
             
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
                                               
Net investment income (loss)
    $1       $340       ($360 )     ($1,171 )     ($3 )     ($3 )
Realized gain
    119       12,923       20,867       260       38       11  
Change in unrealized appreciation (depreciation) on investments
    (120 )     (5,287 )     (11,419 )     5,203       (5 )     11  
             
Net Increase in Net Assets Resulting from Operations
          7,976       9,088       4,292       30       19  
             
INCREASE (DECREASE) IN NET ASSETS FROM CONTRACT OWNER TRANSACTIONS
                                               
Transfer of net premiums
    2       18,748       5,952       28,698       15       30  
Transfers between variable and fixed accounts, net
    (13 )     (121,132 )     (113,858 )     (1,881 )     (17 )     (34 )
Transfers—policy charges and deductions
    (3 )     (424 )     (728 )     (1,113 )     (- )     (- )
Transfers—surrenders
    (49 )     (1,786 )     (1,698 )     (3,622 )     (36 )     (33 )
Adjustments to net assets allocated to contracts in payout (annuitization) period
                                   
Transfers—other
    1       6       12       (6 )            
             
Net Increase (Decrease) in Net Assets Derived from Contract Owner Transactions
    (62 )     (104,588 )     (110,320 )     22,076       (38 )     (37 )
             
NET INCREASE (DECREASE) IN NET ASSETS
    (62 )     (96,612 )     (101,232 )     26,368       (8 )     (18 )
             
NET ASSETS
                                               
Beginning of Year
    327       96,939       101,406       75,038       202       220  
             
End of Year
    $265       $327       $174       $101,406       $194       $202  
             
     
(1)   JPMorgan Insurance Trust Core Bond, JPMorgan Insurance Trust Equity Index, JPMorgan Insurance Trust Diversified Equity, JPMorgan Insurance Trust Diversified Mid Cap Value, JPMorgan Insurance Trust Intrepid Growth, and JPMorgan Insurance Trust Diversified Mid Cap Growth Variable Accounts were formerly named JPMorgan Investment Trust Bond, JPMorgan Investment Trust Equity Index, JPMorgan Investment Trust Diversified Equity, JPMorgan Investment Trust Mid Cap Value, JPMorgan Investment Trust Large Cap Growth, and JPMorgan Investment Trust Mid Cap Growth Variable Accounts, respectively.
     
    See Notes to Financial Statements

J-13


 

SEPARATE ACCOUNT A
FINANCIAL HIGHLIGHTS
     A summary of total units outstanding, total net assets, accumulation unit values (“AUV”), ratios of investment income to average daily net assets and total returns for each year or period ended December 31 are presented in the table below. The annualized ratios of expenses to average daily net assets for each of the Variable Accounts are discussed in Note 4 to Financial Statements.
                                                         
    At the End of Each Year or Period   Ratios of    
                                    Investment    
    Total Units                           Income to    
Variable Accounts   Outstanding   Total Net Assets   AUV (1)   Average Net   Total Returns (3)
For Each Year or Period Ended   (in 000's)   (in $000's)   Lowest   Highest   Assets (2)   Lowest   Highest
 
Small-Cap Growth (4)
                                                       
2007
    54,546     $ 738,267     $ 11.16     $ 14.69       0.00 %     12.81 %     14.64 %
2006
    33,742       403,761       10.91       12.98       0.25 %     2.99 %     4.65 %
2005
    41,021       472,902       10.72       12.56       0.29 %     0.63 %     2.25 %
2004
    16,076       180,521       10.52       12.44       0.61 %     16.59 %     18.47 %
2003
    21,852       209,317       8.91       10.63       0.54 %     30.51 %     32.61 %
 
International Value
                                                       
2007
    201,230     $ 3,360,783     $ 10.31     $ 18.63       2.26 %     4.13 %     5.82 %
2006
    138,057       2,275,303       11.34       17.78       1.76 %     23.21 %     25.19 %
2005
    114,680       1,541,384       11.66       14.35       1.93 %     7.27 %     8.99 %
2004
    128,990       1,612,193       10.87       13.30       1.75 %     14.12 %     15.96 %
2003
    102,714       1,127,110       9.53       11.58       2.00 %     25.19 %     27.20 %
 
International Small-Cap
                                                       
2007
    92,643     $ 974,615     $ 10.12     $ 11.80       1.20 %     2.65 %     4.31 %
05/01/2006 - 12/31/2006
    69,301       707,446       10.17       11.47       0.23 %     2.14 %     2.14 %
 
Equity Index
                                                       
2007
    62,460     $ 1,135,208     $ 10.19     $ 23.61       1.71 %     3.13 %     4.81 %
2006
    77,542       1,400,200       11.16       22.75       1.76 %     13.24 %     15.06 %
2005
    80,050       1,308,175       10.41       19.97       1.75 %     2.60 %     4.25 %
2004
    46,439       782,694       10.02       19.35       1.70 %     8.40 %     10.14 %
2003
    49,320       772,537       9.13       17.74       1.47 %     25.76 %     27.78 %
 
Small-Cap Index
                                                       
2007
    68,229     $ 1,107,860     $ 9.43     $ 16.91       1.53 %     (3.97 %)     (2.41 %)
2006
    40,398       697,301       11.37       17.50       1.30 %     15.46 %     17.32 %
2005
    62,917       937,336       13.55       15.06       0.51 %     2.32 %     3.96 %
2004
    63,104       914,933       13.08       14.64       0.74 %     15.43 %     17.29 %
2003
    39,287       491,260       11.19       12.60       0.76 %     43.63 %     45.94 %
 
Diversified Research
                                                       
2007
    106,191     $ 1,335,806     $ 9.81     $ 12.77       0.72 %     (0.82 %)     0.79 %
2006
    114,405       1,459,009       10.79       12.82       0.75 %     9.76 %     11.53 %
2005
    86,073       995,912       11.13       11.64       0.57 %     3.16 %     4.82 %
2004
    39,648       442,305       10.66       11.24       0.66 %     9.00 %     10.76 %
2003
    29,485       300,306       9.66       10.28       0.41 %     30.00 %     32.10 %
 
Equity
                                                       
2007
    10,394     $ 156,811     $ 10.16     $ 15.93       0.21 %     4.15 %     5.84 %
2006
    10,959       159,985       9.71       15.20       0.34 %     6.51 %     8.22 %
2005
    14,090       191,629       9.15       14.19       0.24 %     4.43 %     5.05 %
2004
    17,277       224,905       8.52       13.51       0.71 %     3.06 %     4.72 %
2003
    21,361       268,303       8.16       13.03       0.36 %     21.87 %     23.84 %
 
American Funds Growth-Income
                                                       
2007
    150,512     $ 1,887,291     $ 10.13     $ 13.06       1.37 %     2.57 %     4.24 %
2006
    117,185       1,439,657       11.09       12.52       1.49 %     12.51 %     14.32 %
05/02/2005 - 12/31/2005
    66,574       723,937       10.84       10.96       1.81 %     7.28 %     8.84 %
 
American Funds Growth
                                                       
2007
    101,316     $ 1,412,128     $ 10.82     $ 14.55       0.43 %     9.70 %     11.48 %
2006
    117,464       1,503,623       10.81       13.05       0.53 %     7.64 %     9.37 %
05/02/2005 - 12/31/2005
    83,851       993,328       11.81       11.94       0.72 %     16.32 %     18.57 %
 
Large-Cap Value
                                                       
2007
    191,383     $ 2,720,282     $ 10.03     $ 15.68       1.28 %     1.48 %     3.12 %
2006
    158,730       2,260,337       11.01       15.36       1.35 %     15.26 %     17.11 %
2005
    131,227       1,624,942       10.80       13.24       1.13 %     4.06 %     5.73 %
2004
    202,397       2,398,999       10.38       12.65       1.47 %     7.75 %     9.49 %
2003
    141,194       1,551,417       9.55       11.67       1.46 %     28.64 %     30.72 %
 
Technology
                                                       
2007
    11,998     $ 101,264     $ 6.78     $ 14.00       0.05 %     20.59 %     22.54 %
2006
    11,188       75,633       5.61       11.58       0.00 %     7.18 %     8.91 %
2005
    15,129       96,613       5.22       8.84       0.00 %     19.31 %     21.23 %
2004
    14,999       79,164       4.37       7.38       0.00 %     1.61 %     3.25 %
2003
    20,347       103,527       4.29       7.24       0.00 %     39.77 %     42.02 %
 
Short Duration Bond
                                                       
2007
    137,060     $ 1,440,945     $ 10.29     $ 11.10       4.47 %     2.39 %     4.05 %
2006
    174,531       1,785,296       10.06       10.66       4.13 %     2.21 %     3.85 %
2005
    145,422       1,448,843       9.84       10.27       3.05 %     (0.43 %)     1.17 %
2004
    128,724       1,282,032       9.88       10.15       2.55 %     (0.80 %)     0.80 %
05/01/2003 - 12/31/2003
    79,924       798,637       9.96       10.07       2.69 %     (0.38 %)     0.69 %
 
     
See Notes to Financial Statements   See explanation of references on page K-4

K-1


 

SEPARATE ACCOUNT A
FINANCIAL HIGHLIGHTS (Continued)
                                                         
    At the End of Each Year or Period   Ratios of    
                                    Investment    
    Total Units                           Income to    
Variable Accounts   Outstanding   Total Net Assets   AUV (1)   Average Net   Total Returns (3)
For Each Year or Period Ended   (in 000's)   (in $000's)   Lowest   Highest   Assets (2)   Lowest   Highest
 
Floating Rate Loan (5)
                                                       
05/02/2007 - 12/31/2007
    74,807     $ 726,576     $ 9.68     $ 9.79       6.52 %     (3.03 %)     (2.87 %)
 
Diversified Bond
                                                       
2007
    183,313     $ 1,901,502     $ 10.01     $ 10.59       5.01 %     (0.70 %)     0.91 %
05/01/2006 - 12/31/2006
    69,865       727,343       10.28       10.49       4.64 %     4.22 %     4.22 %
 
Growth LT
                                                       
2007
    72,629     $ 1,397,014     $ 11.07     $ 27.42       0.44 %     13.33 %     15.16 %
2006
    73,790       1,316,778       10.10       24.05       0.64 %     7.55 %     9.28 %
2005
    58,503       1,027,253       9.27       22.23       0.24 %     5.55 %     7.25 %
2004
    73,097       1,219,527       8.67       20.93       0.00 %     8.21 %     9.96 %
2003
    68,735       1,097,592       7.92       19.23       0.00 %     31.33 %     33.44 %
 
Focused 30
                                                       
2007
    15,077     $ 253,725     $ 12.31     $ 23.64       0.41 %     29.22 %     31.31 %
2006
    13,320       170,147       11.17       18.00       0.07 %     21.27 %     23.22 %
2005
    11,031       116,449       9.19       14.68       1.03 %     19.66 %     21.58 %
2004
    8,930       77,339       7.66       12.23       0.06 %     12.57 %     14.39 %
2003
    8,039       61,035       6.79       10.82       0.00 %     39.44 %     41.69 %
 
Health Sciences
                                                       
2007
    7,692     $ 105,009     $ 10.81     $ 15.82       0.00 %     14.15 %     16.00 %
2006
    8,341       99,247       10.92       13.81       0.00 %     5.97 %     7.68 %
2005
    10,481       117,786       10.28       12.99       0.00 %     13.01 %     14.82 %
2004
    10,537       104,225       9.07       11.45       0.00 %     5.41 %     7.11 %
2003
    10,734       100,427       8.59       10.83       0.00 %     25.29 %     27.31 %
 
Mid-Cap Value
                                                       
2007
    204,995     $ 3,935,195     $ 9.28     $ 22.21       0.79 %     (4.10 %)     (2.54 %)
2006
    168,985       3,542,390       11.30       23.02       0.76 %     12.70 %     14.51 %
2005
    127,837       2,386,950       14.96       20.31       0.64 %     6.72 %     8.43 %
2004
    78,005       1,371,581       13.84       18.91       0.40 %     22.60 %     24.58 %
2003
    63,136       905,461       11.15       15.33       0.62 %     26.55 %     28.59 %
 
Large-Cap Growth (4)
                                                       
2007
    98,533     $ 914,344     $ 8.43     $ 13.13       0.00 %     19.21 %     21.14 %
2006
    190,175       1,451,113       7.05       10.98       0.23 %     (5.72 %)     (4.20 %)
2005
    132,162       1,059,638       7.46       9.02       0.31 %     0.91 %     2.53 %
2004
    213,592       1,687,616       7.38       8.91       0.77 %     2.58 %     4.24 %
2003
    126,242       964,872       7.17       8.66       0.30 %     22.88 %     24.86 %
 
International Large-Cap
                                                       
2007
    219,222     $ 2,821,428     $ 10.46     $ 18.13       1.42 %     7.09 %     8.82 %
2006
    304,639       3,648,294       10.36       16.66       2.89 %     24.50 %     26.50 %
2005
    282,389       2,676,861       8.30       13.17       0.95 %     10.47 %     12.25 %
2004
    182,329       1,547,290       7.49       11.73       1.14 %     16.26 %     18.13 %
2003
    127,976       922,668       6.43       9.93       1.37 %     27.93 %     30.00 %
 
Small-Cap Value
                                                       
2007
    24,163     $ 481,162     $ 9.86     $ 21.76       1.97 %     1.08 %     2.72 %
2006
    23,763       481,479       10.99       21.18       2.32 %     17.39 %     19.28 %
2005
    24,219       417,233       17.02       17.76       1.11 %     11.41 %     13.20 %
2004
    34,125       525,271       15.27       15.69       1.96 %     21.95 %     23.91 %
05/01/2003 - 12/31/2003
    21,960       275,887       12.52       12.66       1.67 %     25.25 %     26.59 %
 
Multi-Strategy
                                                       
2007
    12,855     $ 234,630     $ 10.15     $ 20.29       2.62 %     2.27 %     3.92 %
2006
    15,749       281,202       11.07       19.72       2.40 %     9.48 %     11.24 %
2005
    20,084       325,873       11.61       17.90       2.09 %     1.73 %     3.36 %
2004
    23,222       368,928       11.32       17.49       1.70 %     7.64 %     9.38 %
2003
    24,811       367,211       10.39       16.16       1.65 %     20.84 %     22.78 %
 
Main Street Core
                                                       
2007
    141,484     $ 2,137,237     $ 10.10     $ 19.50       1.27 %     2.32 %     3.98 %
2006
    116,743       1,784,157       10.96       18.94       1.28 %     12.90 %     14.72 %
2005
    115,689       1,595,188       9.58       16.68       1.29 %     3.90 %     5.57 %
2004
    74,999       1,027,423       9.11       15.96       1.45 %     7.37 %     9.10 %
2003
    58,972       769,037       8.38       14.77       1.19 %     24.45 %     26.45 %
 
Emerging Markets
                                                       
2007
    58,327     $ 1,800,752     $ 13.07     $ 48.37       1.13 %     30.45 %     32.56 %
2006
    53,065       1,296,585       12.35       36.49       0.77 %     21.94 %     23.90 %
2005
    55,958       1,099,297       16.62       29.77       1.16 %     38.68 %     40.91 %
2004
    39,728       550,207       11.96       21.39       2.18 %     31.96 %     34.09 %
2003
    22,815       230,453       9.04       16.16       1.36 %     65.15 %     67.81 %
 
     
See Notes to Financial Statements   See explanation of references on page K-4

K-2


 

SEPARATE ACCOUNT A
FINANCIAL HIGHLIGHTS (Continued)
                                                         
    At the End of Each Year or Period   Ratios of    
                                    Investment    
    Total Units                           Income to    
Variable Accounts   Outstanding   Total Net Assets   AUV (1)   Average Net   Total Returns (3)
For Each Year or Period Ended   (in 000's)   (in $000's)   Lowest   Highest   Assets (2)   Lowest   Highest
 
Managed Bond
                                                       
2007
    245,486     $ 3,860,497     $ 10.76     $ 18.00       4.50 %     6.37 %     8.10 %        
2006
    195,054       2,937,942       10.27       16.82       4.01 %     2.74 %     4.39 %        
2005
    186,046       2,722,556       12.09       16.27       3.40 %     0.61 %     2.23 %        
2004
    158,020       2,303,163       12.01       16.08       2.99 %     3.29 %     4.96 %        
2003
    134,892       1,907,366       11.63       15.47       4.35 %     4.13 %     5.81 %        
 
Inflation Managed
                                                       
2007
    267,549     $ 4,298,954     $ 10.76     $ 18.37       4.30 %     7.95 %     9.70 %        
2006
    198,553       3,017,318       9.96       16.92       4.04 %     (1.47 %)     0.12 %        
2005
    157,433       2,430,537       12.93       17.07       3.01 %     0.52 %     2.13 %        
2004
    130,232       1,991,098       12.86       16.88       0.88 %     6.74 %     8.46 %        
2003
    93,814       1,343,374       12.05       15.72       0.09 %     6.10 %     7.81 %        
 
Money Market
                                                       
2007
    51,227     $ 626,894     $ 10.32     $ 13.29       4.84 %     2.90 %     4.57 %        
2006
    54,709       653,993       10.12       12.84       4.60 %     2.62 %     4.27 %        
2005
    47,882       552,496       9.89       12.43       2.77 %     0.79 %     2.41 %        
2004
    50,956       578,711       9.81       12.26       0.99 %     (0.99 %)     0.61 %        
2003
    59,210       679,894       9.91       12.31       0.80 %     (1.21 %)     0.39 %        
 
High Yield Bond
                                                       
2007
    45,260     $ 642,041     $ 10.00     $ 15.50       7.59 %     0.40 %     2.03 %        
2006
    47,706       682,250       10.57       15.35       7.33 %     7.26 %     8.99 %        
2005
    53,083       707,427       11.54       14.22       7.07 %     0.35 %     1.96 %        
2004
    53,762       710,349       11.50       14.09       7.11 %     7.26 %     8.99 %        
2003
    57,084       700,342       10.72       13.06       7.42 %     17.91 %     19.81 %        
 
Comstock (4)
                                                       
2007
    211,667     $ 2,415,367     $ 9.38     $ 12.68       1.62 %     (4.94 %)     (3.40 %)        
2006
    121,309       1,458,457       11.07       13.13       1.77 %     14.04 %     15.87 %        
2005
    78,368       821,032       10.06       11.33       1.64 %     2.30 %     3.95 %        
2004
    65,803       670,082       9.81       10.90       1.32 %     14.85 %     16.70 %        
2003
    41,914       369,305       8.52       9.34       1.11 %     28.78 %     30.86 %        
 
Mid-Cap Growth
                                                       
2007
    121,631     $ 1,307,108     $ 9.52     $ 13.61       0.46 %     20.47 %     22.42 %        
2006
    109,244       960,904       7.88       11.27       0.31 %     6.78 %     8.50 %        
2005
    28,496       231,698       7.36       9.85       0.00 %     15.57 %     17.43 %        
2004
    27,151       191,057       6.36       8.49       0.00 %     19.18 %     21.10 %        
2003
    23,836       140,665       5.32       7.10       0.00 %     27.81 %     29.87 %        
 
Real Estate
                                                       
2007
    30,703     $ 811,165     $ 7.55     $ 32.40       1.10 %     (17.83 %)     (16.50 %)        
2006
    27,982       993,041       11.79       39.20       3.14 %     35.34 %     37.51 %        
2005
    25,484       674,545       21.58       28.79       0.91 %     14.48 %     16.32 %        
2004
    25,556       590,482       18.62       25.00       2.73 %     34.89 %     37.07 %        
2003
    22,063       378,106       13.63       18.42       3.47 %     34.80 %     36.97 %        
 
Small-Cap Equity (4)
                                                       
2007
    29,618     $ 405,731     $ 10.25     $ 14.36       0.28 %     3.93 %     5.61 %        
2006
    6,512       86,835       11.13       13.60       0.75 %     16.34 %     18.21 %        
05/02/2005 - 12/31/2005
    5,459       62,324       11.38       11.50       0.84 %     12.09 %     14.27 %        
 
Jennison
                                                       
2007
    46     $ 568     $ 12.25     $ 12.52       0.00 %     9.61 %     10.00 %        
2006
    49       554       11.18       11.39       0.00 %     (0.39 %)     (0.04 %)        
2005
    52       586       11.22       11.39       0.00 %     12.05 %     12.44 %        
2004
    54       546       10.01       10.13       0.04 %     7.32 %     7.70 %        
2003
    71       667       9.33       9.41       0.00 %     27.36 %     27.81 %        
 
Value
                                                       
2007
    50     $ 771     $ 15.22     $ 15.56       0.99 %     1.03 %     1.39 %        
2006
    52       794       15.07       15.35       0.97 %     17.37 %     17.78 %        
2005
    63       819       12.84       13.03       0.83 %     14.21 %     14.60 %        
2004
    74       837       11.24       11.37       0.91 %     13.82 %     14.22 %        
2003
    97       965       9.33       9.96       1.03 %     25.42 %     25.86 %        
 
SP William Blair International Growth (4)
                                                       
2007
    37     $ 704     $ 18.68     $ 19.10       0.37 %     17.05 %     17.46 %        
2006
    39       619       15.96       16.26       1.60 %     18.33 %     18.75 %        
2005
    47       642       13.49       13.69       0.25 %     13.79 %     14.19 %        
2004
    60       714       11.85       11.99       0.00 %     14.11 %     14.51 %        
2003
    73       759       10.39       10.47       0.00 %     36.73 %     37.21 %        
 
SP Prudential U.S. Emerging Growth
                                                       
2007
    71     $ 357     $ 16.63     $ 17.01       0.00 %     14.31 %     14.72 %        
2006
    21       314       14.55       14.82       0.00 %     7.21 %     7.58 %        
2005
    22       298       13.57       13.78       0.00 %     15.44 %     15.85 %        
2004
    23       270       11.76       11.89       0.03 %     18.91 %     19.32 %        
2003
    27       264       9.89       9.97       0.00 %     39.05 %     39.54 %        
 
     
See Notes to Financial Statements   See explanation of references on page K-4

K-3


 

SEPARATE ACCOUNT A
FINANCIAL HIGHLIGHTS (Continued)
                                                         
    At the End of Each Year or Period   Ratios of    
                                    Investment    
    Total Units                           Income to    
Variable Accounts   Outstanding   Total Net Assets   AUV (1)   Average Net   Total Returns (3)
For Each Year or Period Ended   (in 000's)   (in $000's)   Lowest   Highest   Assets (2)   Lowest   Highest
 
JPMorgan Insurance Trust Core Bond (4)
                                                       
2007
    103     $ 1,164     $ 11.23     $ 11.31       14.08 %     4.61 %     4.82 %
2006
    5,228       56,363       10.73       10.79       6.69 %     2.49 %     2.69 %
2005
    12,119       127,276       10.50       10.50       2.65 %     0.97 %     0.97 %
06/10/2004 - 12/31/2004
    3,092       32,173       10.40       10.40       0.00 %     4.04 %     4.04 %
 
JPMorgan Insurance Trust Equity Index (4)
                                                       
2007
    35     $ 452     $ 12.85     $ 12.95       1.48 %     3.63 %     3.63 %
2006
    40       498       12.43       12.49       1.32 %     13.82 %     13.82 %
2005
    40       444       10.98       10.98       1.39 %     3.01 %     3.01 %
06/10/2004 - 12/31/2004
    21       226       10.66       10.66       0.00 %     6.55 %     6.55 %
 
JPMorgan Insurance Trust Diversified Equity (4)
                                                       
2007
    12,245     $ 162,510     $ 13.19     $ 13.28     See Note (6)     8.91 %     8.91 %
2006
    10       124       12.13       12.20       0.96 %     14.54 %     14.54 %
2005
    16       169       10.65       10.65       1.00 %     0.91 %     0.91 %
06/10/2004 - 12/31/2004
    7       70       10.55       10.55       0.00 %     5.52 %     5.52 %
 
JPMorgan Insurance Trust Diversified Mid Cap Value (4)
                                                       
2007
    19     $ 265     $ 13.57     $ 13.66       1.79 %     (0.69 %)     (0.49 %)
2006
    24       327       13.66       13.73       2.33 %     14.87 %     15.10 %
2005
    8,127       96,939       11.89       11.93       0.25 %     8.23 %     8.23 %
06/10/2004 - 12/31/2004
    1,148       12,649       11.02       11.02       0.00 %     10.23 %     10.23 %
 
JPMorgan Insurance Trust Intrepid Growth (4)
                                                       
2007
    14     $ 174     $ 12.27     $ 12.36       0.49 %     9.77 %     9.99 %
2006
    9,029       101,406       11.18       11.24       0.07 %     3.71 %     3.91 %
2005
    6,941       75,038       10.78       10.81       0.48 %     3.60 %     3.60 %
06/10/2004 - 12/31/2004
    2,816       29,388       10.44       10.44       0.00 %     4.38 %     4.38 %
 
JPMorgan Insurance Trust
Diversified Mid Cap Growth
(4)
                                                       
2007
    13     $ 194     $ 14.72     $ 14.83       0.00 %     15.37 %     15.60 %
2006
    16       202       12.76       12.83       0.00 %     9.84 %     9.84 %
2005
    19       220       11.68       11.68       0.00 %     9.55 %     9.55 %
06/10/2004 - 12/31/2004
    8       86       10.66       10.66       0.00 %     6.58 %     6.58 %
 
Explanation of References for Financial Highlights on K-1 through K-4
(1)   The AUV is presented as a range from lowest to highest based on the ending AUV for all product groupings as of December 31 of each year. The lowest and highest AUV may be the same for a variable account if there is only one product which has investments at the end of the year.
 
(2)   The investment income ratios represent the dividends, excluding distributions of capital gains, received by the variable accounts from the underlying portfolios, divided by the average daily net assets. These ratios are before the deduction of mortality and expense risk (“M&E”) fees, administrative fees, and additional death benefit rider charges, if any, that are assessed against contract owner accounts. The recognition of investment income by the variable accounts is affected by the timing of the declaration of dividends by the underlying portfolios in which the variable accounts invest. The ratios for periods of less than one full year are annualized.
 
(3)   Total returns reflect changes in unit value of the underlying portfolios and deductions for M&E fees, administrative fees, and additional death benefit rider charges, if any, assessed through the daily AUV calculation. These fees and charges are assessed at annual rates ranging from 0.40% to 2.00% based on the average daily net assets of each variable account as discussed in Note 4 to the Financial Statements. Total returns do not include deductions at the separate account or contract level for any premium loads, maintenance fees, premium tax charges, withdrawal and surrender charges, charges for other optional benefit riders, or other charges that may be incurred under a contract which, if incurred, would have resulted in lower returns. Total returns are presented as a range of lowest to highest values based on the product grouping representing the minimum to maximum expense ratio amounts. Total returns for those individual contracts which commenced operations during the year may not be within the ranges presented. Total returns are not annualized for periods of less than one full year.
 
(4)   Prior to May 1, 2003, Comstock Variable Account was named Strategic Value Variable Account; prior to May 1, 2004, SP William Blair International Growth Variable Account was named SP Jennison International Growth Variable Account; prior to January 1, 2006, Large-Cap Growth Variable Account was named Blue Chip Variable Account; prior to May 1, 2006, JPMorgan Insurance Trust Core Bond, JPMorgan Insurance Trust Equity Index, JPMorgan Insurance Trust Diversified Equity, JPMorgan Insurance Trust Diversified Mid Cap Value, and JPMorgan Insurance Trust Diversified Mid Cap Growth Variable Accounts were named JPMorgan Investment Trust Bond, JPMorgan Investment Trust Equity Index, JPMorgan Investment Trust Diversified Equity, JPMorgan Investment Trust Mid Cap Value, and JPMorgan Investment Trust Mid Cap Growth Variable Accounts, respectively; prior to November 1, 2006, JPMorgan Insurance Trust Intrepid Growth Variable Account was named JPMorgan Insurance Trust Large Cap Growth Variable Account, and prior to May 1, 2006, it was named JPMorgan Investment Trust Large Cap Growth Variable Account; prior to May 1, 2007, Small-Cap Growth Variable Account was named Fasciano Small Equity Variable Account, and prior to May 1, 2005, it was named Aggressive Equity Variable Account; prior to May 1, 2007, Small-Cap Equity Variable Account was named VN Small-Cap Value Variable Account.
 
(5)   Operations commenced during 2007 (See Note 1 to Financial Statements).
 
(6)   Amount represents less than 0.005%.
     
See Notes to Financial Statements  

K-4


 

SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
     The Separate Account A (the “Separate Account”) is registered as a unit investment trust under the Investment Company Act of 1940, as amended, and as of December 31, 2007 is comprised of forty-two subaccounts called Variable Accounts. The assets in each of the Variable Accounts invest in the corresponding portfolios (each, a “Portfolio” and collectively, the “Portfolios”) of Pacific Select Fund, Prudential Series Fund, Inc. (Class II shares), and JPMorgan Insurance Trust (formerly JPMorgan Investment Trust) (collectively, the “Funds”) as presented in the Schedule of Investments in Section I of this brochure.
     Each Portfolio pursues different investment objectives and policies. The financial statements of the Funds, including the schedules of investments, are either included in Sections A through H of this brochure or provided separately and should be read in conjunction with the Separate Account’s financial statements.
     The Separate Account organized and registered with the Securities and Exchange Commission (“SEC”) a new Variable Account named the Floating Rate Loan Variable Account that commenced operations on May 2, 2007.
     The net assets of the Pacific Select Fund’s Concentrated Growth and Capital Opportunities Portfolios, the underlying portfolios for the Concentrated Growth and Capital Opportunities Variable Accounts, respectively, were transferred to the Pacific Select Fund’s Equity and Main Street Core Portfolios (the “2007 Surviving Portfolios”), the underlying portfolios for the Equity and Main Street Core Variable Accounts, respectively, in exchange for shares of the 2007 Surviving Portfolios (the “2007 Reorganization”). The 2007 Reorganization took place on April 30, 2007. In connection with the 2007 Reorganization, a total of 6,163,071 outstanding accumulation units (valued at $32,559,412) of the Concentrated Growth Variable Account were exchanged for 2,205,668 accumulation units with equal value of the Equity Variable Account; and a total of 5,898,018 outstanding accumulation units (valued at $61,582,163) of the Capital Opportunities Variable Account were exchanged for 3,828,190 accumulation units with equal value of the Main Street Core Variable Account.
     The net assets of the Pacific Select Fund’s Aggressive Growth and Financial Services Portfolios, the underlying portfolios for the Aggressive Growth and Financial Services Variable Accounts, respectively, were transferred to the Pacific Select Fund’s Mid-Cap Growth and Large-Cap Value Portfolios (the “2006 Surviving Portfolios”), the underlying portfolios for the Mid-Cap Growth and Large-Cap Value Variable Accounts, respectively, in exchange for shares of the 2006 Surviving Portfolios (the “2006 Reorganization”). The 2006 Reorganization took place on April 28, 2006. In connection with the 2006 Reorganization, a total of 5,990,977 outstanding accumulation units (valued at $59,728,135) of the Aggressive Growth Variable Account were exchanged for 6,769,094 accumulation units with equal value of the Mid-Cap Growth Variable Account; and a total of 5,358,266 outstanding accumulation units (valued at $62,861,745) of the Financial Services Variable Account were exchanged for 4,819,985 accumulation units with equal value of the Large-Cap Value Variable Account.
     The net assets of the Pacific Select Fund’s Equity Income Portfolio, the underlying Portfolio for Equity Income Variable Account, was substituted by the Pacific Select Fund’s American Funds Growth-Income Portfolio, the underlying Portfolio of American Funds Growth-Income Variable Account (the “Substitution”). The Substitution took place on April 28, 2006. In connection with the Substitution, a total of 9,647,312 outstanding accumulation units (valued at $123,810,211) of the Equity Income Variable Account were substituted by 10,861,801 accumulation units with equal value of the American Funds Growth-Income Variable Account.
     The Separate Account was established by Pacific Life Insurance Company (“Pacific Life”) on September 7, 1994 and commenced operations on January 2, 1996. Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from the other assets and liabilities of Pacific Life. The assets of the Separate Account will not be charged with any liabilities arising out of any other business conducted by Pacific Life, but the obligations of the Separate Account, including benefits related to variable annuities, are obligations of Pacific Life.
     The Separate Account funds individual flexible premium variable accumulation deferred annuity contracts (the “Contracts”). The assets of the Separate Account are carried at market value.
2. SIGNIFICANT ACCOUNTING POLICIES
     The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America for investment companies which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
     A. Valuation of Investments
     Investments in shares of the Funds are valued at the reported net asset values of the respective Portfolios. Valuation of securities held by the Funds are discussed in the notes to their respective financial statements.
     B. Security Transactions and Investment Income
     Transactions are recorded on the trade date. Realized gains and losses on sales of investments are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date and the amounts distributed to the Separate Account for its share of dividends are reinvested in additional full and fractional shares of the related Portfolios.
     C. Federal Income Taxes
     The operations of the Separate Account will be reported on the Federal income tax return of Pacific Life, which is taxed as a life insurance company under the provisions of the Tax Reform Act of 1986. Under current tax law, no Federal income taxes are expected to be paid by Pacific Life with respect to the operations of the Separate Account. Pacific Life will review periodically the status of this policy in the event of changes in the tax law. A charge may be made in future years for any Federal income taxes that would be attributable to the Contracts.
     D. Contracts in Payout Period
     Net assets allocated to Contracts in payout period are computed, on a current basis, according to the Annuity 2000 Mortality Table. The assumed investment return is 5.0 percent unless the annuitant elects otherwise, in which case the rate may vary from 3.5 percent to 7.0 percent, as regulated by the laws of the respective states. The mortality risk is fully borne by Pacific Life and may result in additional amounts being transferred into the Variable Accounts by Pacific Life to cover greater longevity of annuitants than expected. Conversely, if amounts allocated exceed the amounts required, transfers may be made to Pacific Life.

L-1


 

3. RELATED PARTY AGREEMENT
     Pacific Select Distributors, Inc., a wholly-owned subsidiary of Pacific Life, serves as principal underwriter of the Contracts funded by interests in the Separate Account, without remuneration from the Separate Account.
4. CHARGES AND EXPENSES
     Contracts funded by the Separate Account currently being sold or administered include the Pacific One, Pacific Portfolios, Pacific Value, Pacific Innovations, Pacific Innovations Select, Pacific One Select, Pacific Odyssey, and Pacific Voyages. Pacific Value, Pacific Innovations, Pacific Innovations Select, Pacific One Select (issued prior to August 1, 2006), and Pacific Odyssey Contracts have three different death benefit options: the Standard Death Benefit, the Stepped-Up Death Benefit Rider, and for Contracts issued before May 1, 2003, the Premier Death Benefit Rider. Pacific One, Pacific Portfolios, Pacific One Select (issued on or after August 1, 2006), and Pacific Voyages Contracts have two different death benefit options: the Standard Death Benefit and the Stepped-Up Death Benefit Rider. Pacific Life deducts from the Separate Account daily charges for mortality and expense risks (“M&E”) and administrative expenses Pacific Life assumes, and additional death benefit riders charges for Contract owners who purchased the Stepped-Up Death Benefit Rider or the Premier Death Benefit Rider. These charges are assessed daily at the following annual rates on the average daily net assets of each Variable Account:
                         
    Death Benefit Options
    Standard   With Stepped-   With Premier
Pacific One and Pacific   Death   Up Death   Death
Portfolios Contracts   Benefit   Benefit Rider   Benefit Rider
 
M&E Charge
    1.25 %     1.25 %     N/A  
Administrative Fee
    0.15 %     0.15 %     N/A  
Death Benefit Rider Charge
  None     0.20 %     N/A  
 
                       
Total Annual Expenses
    1.40 %     1.60 %     N/A  
 
                       
 
                       
Pacific Value and Pacific
Innovations Contracts
                       
 
M&E Charge
    1.25 %     1.25 %     1.25 %
Administrative Fee
    0.15 %     0.15 %     0.15 %
Death Benefit Rider Charge
  None     0.20 %     0.35 %
 
                       
Total Annual Expenses
    1.40 %     1.60 %     1.75 %
 
                       
 
                       
Pacific One Select (issued prior
to 8/1/2006) and Pacific
Innovations Select Contracts
                       
 
M&E Charge
    1.40 %     1.40 %     1.40 %
Administrative Fee
    0.25 %     0.25 %     0.25 %
Death Benefit Rider Charge
  None     0.20 %     0.35 %
 
                       
Total Annual Expenses
    1.65 %     1.85 %     2.00 %
 
                       
                         
    Death Benefit Options
    Standard   With Stepped-   With Premier
Pacific One Select Contracts   Death   Up Death   Death Benefit
(issued on or after 8/1/2006)   Benefit   Benefit Rider   Rider
 
M&E Charge
    1.50 %     1.50 %     N/A  
Administrative Fee
    0.25 %     0.25 %     N/A  
Death Benefit Rider Charge
  None     0.20 %     N/A  
 
                       
Total Annual Expenses
    1.75 %     1.95 %     N/A  
 
                       
 
                       
Pacific Odyssey Contracts
                       
 
M&E Charge
    0.15 %     0.15 %     0.15 %
Administrative Fee
    0.25 %     0.25 %     0.25 %
Death Benefit Rider Charge
  None     0.20 %     0.35 %
 
                       
Total Annual Expenses
    0.40 %     0.60 %     0.75 %
 
                       
 
                       
Pacific Voyages Contracts
                       
 
M&E Charge
    1.00 %     1.00 %     N/A  
Administrative Fee
    0.15 %     0.15 %     N/A  
Death Benefit Rider Charge
  None     0.20 %     N/A  
 
                       
Total Annual Expenses
    1.15 %     1.35 %     N/A  
 
                       
     Under the Contracts, Pacific Life makes certain deductions from the net assets of each Variable Account for maintenance fees, any other optional benefit riders, any state premium taxes, and any withdrawal and surrender charges. The operating expenses of the Separate Account are paid by Pacific Life.

L-2


 

SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (Continued)
5. PURCHASES AND SALES OF INVESTMENTS
     The cost of purchases (excluding dividend reinvestments) and proceeds from sales of investments for the year or period ended December 31, 2007, were as follows (amounts in thousands):
                 
Variable Accounts   Purchases     Sales  
Small-Cap Growth (1)
  $ 292,181     $ 34,470  
International Value
    1,089,875       118,633  
International Small-Cap
    291,448       44,329  
Equity Index
    161,432       504,798  
Small-Cap Index
    571,508       111,886  
Diversified Research
    219,966       368,750  
Equity
    53,277       66,561  
American Funds Growth-Income
    445,538       60,041  
American Funds Growth
    329,747       589,843  
Large-Cap Value
    517,521       130,281  
Technology
    52,857       42,953  
Short Duration Bond
    337,138       749,309  
Floating Rate Loan (2)
    787,755       47,486  
Diversified Bond
    1,204,543       35,636  
Growth LT
    171,872       289,974  
Focused 30
    113,068       83,778  
Health Sciences
    34,341       43,291  
Mid-Cap Value
    716,200       212,943  
Large-Cap Growth
    197,262       948,036  
International Large-Cap
    800,922       1,965,773  
Small-Cap Value
    78,887       94,930  
Multi-Strategy
    19,492       78,514  
Main Street Core
    374,450       98,584  
Emerging Markets
    232,266       165,587  
Managed Bond
    812,159       180,268  
Inflation Managed
    1,038,655       129,917  
Money Market
    1,225,553       1,284,281  
High Yield Bond
    141,063       198,702  
Comstock
    1,153,751       62,208  
Mid-Cap Growth
    213,974       96,159  
Real Estate
    128,879       157,952  
Small-Cap Equity (1)
    336,996       22,712  
Jennison
    3       52  
Value
    3       49  
SP William Blair International Growth
          31  
SP Prudential U.S. Emerging Growth
          8  
JPMorgan Insurance Trust Core Bond
    4,034       60,514  
JPMorgan Insurance Trust Equity Index
    6       77  
JPMorgan Insurance Trust Diversified Equity
    160,544       582  
JPMorgan Insurance Trust Diversified Mid Cap Value
    7       74  
JPMorgan Insurance Trust Intrepid Growth
    6,987       117,863  
JPMorgan Insurance Trust Diversified Mid Cap Growth
    35       76  
 
(1)   Prior to May 1, 2007, the Small-Cap Growth and Small-Cap Equity Variable Accounts were named Fasciano Small Equity and VN Small-Cap Value Variable Accounts, respectively.
 
(2)   Operations commenced during 2007 (See Note 1 to Financial Statements).

L-3


 

SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (Continued)
6. CHANGES IN UNITS OUTSTANDING
     The changes in units outstanding for the years or periods ended December 31, 2007 and 2006 were as follows (amounts in thousands):
                                                 
    2007   2006
    Units   Units   Net Increase   Units   Units   Net Increase
Variable Accounts   Issued   Redeemed   (Decrease)   Issued   Redeemed   (Decrease)
Small-Cap Growth (1)
    30,357       (9,553 )     20,804       16,666       (23,945 )     (7,279 )
International Value
    95,990       (32,817 )     63,173       57,748       (34,371 )     23,377  
International Small-Cap (2)
    42,196       (18,854 )     23,342       74,582       (5,281 )     69,301  
Equity Index
    21,513       (36,595 )     (15,082 )     30,385       (32,893 )     (2,508 )
Small-Cap Index
    42,148       (14,317 )     27,831       18,366       (40,885 )     (22,519 )
Diversified Research
    31,344       (39,558 )     (8,214 )     44,941       (16,609 )     28,332  
Equity
    4,427       (4,992 )     (565 )     1,447       (4,578 )     (3,131 )
American Funds Growth-Income
    59,098       (25,771 )     33,327       66,856       (16,245 )     50,611  
American Funds Growth
    42,476       (58,624 )     (16,148 )     57,845       (24,232 )     33,613  
Large-Cap Value
    63,702       (31,049 )     32,653       59,259       (31,756 )     27,503  
Technology
    8,189       (7,379 )     810       9,271       (13,212 )     (3,941 )
Short Duration Bond
    59,029       (96,500 )     (37,471 )     84,309       (55,200 )     29,109  
Floating Rate Loan (3)
    87,623       (12,816 )     74,807      
Diversified Bond (2)
    135,194       (21,746 )     113,448       76,912       (7,047 )     69,865  
Growth LT
    23,831       (24,992 )     (1,161 )     33,737       (18,450 )     15,287  
Focused 30
    10,216       (8,459 )     1,757       11,129       (8,840 )     2,289  
Health Sciences
    3,481       (4,130 )     (649 )     4,092       (6,232 )     (2,140 )
Mid-Cap Value
    72,159       (36,149 )     36,010       69,987       (28,839 )     41,148  
Large-Cap Growth
    41,878       (133,520 )     (91,642 )     86,261       (28,248 )     58,013  
International Large-Cap
    98,458       (183,875 )     (85,417 )     135,872       (113,622 )     22,250  
Small-Cap Value
    9,009       (8,609 )     400       10,062       (10,518 )     (456 )
Multi-Strategy
    2,232       (5,126 )     (2,894 )     1,721       (6,056 )     (4,335 )
Main Street Core
    55,105       (30,364 )     24,741       40,384       (39,330 )     1,054  
Emerging Markets
    22,726       (17,464 )     5,262       25,903       (28,796 )     (2,893 )
Managed Bond
    97,259       (46,827 )     50,432       76,693       (67,685 )     9,008  
Inflation Managed
    111,778       (42,782 )     68,996       79,450       (38,330 )     41,120  
Money Market
    149,077       (152,559 )     (3,482 )     123,102       (116,275 )     6,827  
High Yield Bond
    19,816       (22,262 )     (2,446 )     21,151       (26,528 )     (5,377 )
Comstock
    116,440       (26,082 )     90,358       61,934       (18,993 )     42,941  
Mid-Cap Growth
    41,410       (29,023 )     12,387       103,709       (22,961 )     80,748  
Real Estate
    13,078       (10,357 )     2,721       11,486       (8,988 )     2,498  
Small-Cap Equity (1)
    27,671       (4,565 )     23,106       4,451       (3,398 )     1,053  
Jennison
          (3 )     (3 )           (3 )     (3 )
Value
          (2 )     (2 )           (11 )     (11 )
SP William Blair International Growth
          (2 )     (2 )           (8 )     (8 )
SP Prudential U.S. Emerging Growth
                            (1 )     (1 )
JPMorgan Insurance Trust Core Bond (4)
    542       (5,667 )     (5,125 )     4,478       (11,369 )     (6,891 )
JPMorgan Insurance Trust Equity Index (4)
    1       (6 )     (5 )     7       (7 )      
JPMorgan Insurance Trust Diversified Equity (4)
    12,789       (554 )     12,235       2       (8 )     (6 )
JPMorgan Insurance Trust Diversified Mid Cap Value (4)
          (5 )     (5 )     2,184       (10,287 )     (8,103 )
JPMorgan Insurance Trust Intrepid Growth (4)
    887       (9,902 )     (9,015 )     4,043       (1,955 )     2,088  
JPMorgan Insurance Trust Diversified Mid Cap Growth (4)
    2       (5 )     (3 )     4       (7 )     (3 )
 
(1)   Prior to May 1, 2007, the Small-Cap Growth and Small-Cap Equity Variable Accounts were named Fasciano Small Equity and VN Small-Cap Value Variable Accounts, respectively.
 
(2)   Operations commenced on May 1, 2006.
 
(3)   Operations commenced during 2007 (See Note 1 to Financial Statements).
 
(4)   Prior to May 1, 2006, JPMorgan Insurance Trust Core Bond, JPMorgan Insurance Trust Equity Index, JPMorgan Insurance Trust Diversified Equity, JPMorgan Insurance Trust Diversified Mid Cap Value, and JPMorgan Insurance Trust Diversified Mid Cap Growth Variable Accounts were named JPMorgan Investment Trust Bond, JPMorgan Investment Trust Equity Index, JPMorgan Investment Trust Diversified Equity, JPMorgan Investment Trust Mid Cap Value, and JPMorgan Investment Trust Mid Cap Growth Variable Accounts, respectively; prior to November 1, 2006, JPMorgan Insurance Trust Intrepid Growth Variable Account was named JPMorgan Insurance Trust Large Cap Growth Variable Account, and prior to May 1, 2006, it was named JPMorgan Investment Trust Large Cap Growth Variable Account.

L-4


 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors
Pacific Life Insurance Company:
     We have audited the accompanying statements of assets and liabilities, including schedule of investments, of Separate Account A (the “Separate Account”) comprised of Small-Cap Growth (formerly Fasciano Small Equity), International Value, International Small-Cap, Equity Index, Small-Cap Index, Diversified Research, Equity, American Funds® Growth-Income, American Funds Growth, Large-Cap Value, Technology, Short Duration Bond, Floating Rate Loan, Diversified Bond, Growth LT, Focused 30, Health Sciences, Mid-Cap Value, Large-Cap Growth, International Large-Cap, Small-Cap Value, Multi-Strategy, Main Street® Core, Emerging Markets, Managed Bond, Inflation Managed, Money Market, High Yield Bond, Comstock, Mid-Cap Growth, Real Estate, Small-Cap Equity (formerly VN Small-Cap Value), Jennison, Value, SP William Blair International Growth, SP Prudential U.S. Emerging Growth, JPMorgan Insurance Trust Core Bond, JPMorgan Insurance Trust Equity Index, JPMorgan Insurance Trust Diversified Equity, JPMorgan Insurance Trust Diversified Mid Cap Value, JPMorgan Insurance Trust Intrepid Growth, and JPMorgan Insurance Trust Diversified Mid Cap Growth Variable Accounts (collectively, the “Variable Accounts”) as of December 31, 2007, the related statements of operations for the periods presented, the statements of changes in net assets for each of the periods presented, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
     We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Separate Account is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Separate Account’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2007. We believe that our audits provide a reasonable basis for our opinion.
     In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective Variable Accounts constituting Separate Account A as of December 31, 2007, the results of their operations, the changes in their net assets, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Costa Mesa, California
February 29, 2008

M-1


 

Annual Reports
as of December 31, 2007

  Pacific Select Fund
  Separate Account A of
Pacific Life Insurance Company

     
 
  Pacific Life Insurance Company
  P.O. Box 2378
  Omaha, NE 68103-2378
 
   
  ADDRESS SERVICE REQUESTED
     
Form No.
  2143-08A