ThZeal - The Zeal

497 1 a2034486z497.txt 497 STAG VARIABLE LIFE SEPARATE ACCOUNT VL I HARTFORD LIFE AND ANNUITY INSURANCE COMPANY SUPPLEMENT DATED JANUARY 2, 2001 TO PROSPECTUS DATED MAY 1, 2000 Effective January 15, 2001 the following changes apply: The following Sub-Accounts are added in alphabetical order to the cover page of the prospectus: - AMERICAN FUNDS GLOBAL GROWTH FUND SUB-ACCOUNT Class 2 of the Global Growth Fund of American Funds Insurance Series - AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND SUB-ACCOUNT Class 2 of the Global Small Capitalization Fund of American Funds Insurance Series - AMERICAN FUNDS GROWTH FUND SUB-ACCOUNT Class 2 of the Growth Fund of American Funds Insurance Series - AMERICAN FUNDS GROWTH-INCOME FUND SUB-ACCOUNT Class 2 of the Growth-Income Fund of American Funds Insurance Series - HARTFORD GLOBAL LEADERS SUB-ACCOUNT Class IA of Hartford Global Leaders HLS Fund of Hartford Series Fund, Inc. - HARTFORD GLOBAL TECHNOLOGY SUB-ACCOUNT Class IA of Hartford Global Technology HLS Fund of Hartford Series Fund, Inc. Under the section entitled "Summary of Benefits and Risks", the paragraph entitled "Investment Choices" is deleted and replaced with the following: INVESTMENT CHOICES -- You may invest in up to 9 different investment choices within your policy, from a choice of 42 investment options and a Fixed Account. You may transfer money among your investment choices, subject to restrictions. The table of Annual Fund Operating Expenses is deleted and replaced with the following:

HV-2860 333-61267 1 of 10 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY --------------------------------------------------------------------------------

(1) Hartford Global Technology HLS Fund is a new fund. Total Fund Operating Expenses are based on annualized estimates of such expenses to be incurred during the current fiscal year. (2) Total Annual Fund Operating Expenses for Putnam VT OTC & Emerging Growth Fund reflect voluntary reductions and reimbursements through at least December 31, 2000. Absent voluntary reductions and reimbursements, Total Annual Fund Operating Expenses would have been as follows:

(3) A portion of the brokerage commissions that certain funds pay was used to reduce fund expenses. In addition, through arrangements with certain funds of FMR on behalf of certain funds' custodian, credits realized as a result of uninvested cash balances were used to reduce a portion of each applicable fund's expenses. These reductions will continue through at least HV-2860 2 of 10 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY -------------------------------------------------------------------------------- December 31, 2000 pursuant to an agreement between the adviser and the funds. Without these reductions, Total Fund Operating Expenses would have been:

The following is added in the section entitled "About Us" immediately following the Hartford Ratings table: These ratings apply to Hartford's ability to meet its obligations under the Contract. The ratings do not apply to the Separate Account or the underlying Funds. Under the section entitled "The Funds", the following language is added in alphabetical order: AMERICAN FUNDS GLOBAL GROWTH FUND -- Seeks long-term growth of capital by investing primarily in common stocks of issuers domiciled around the world. AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND -- Seeks long-term growth of capital by investing primarily in equity securities of smaller companies located around the world that typically have market capitalization of $50 million to $1.5 billion. AMERICAN FUNDS GROWTH FUND -- Seeks long-term growth of capital by investing primarily in common stocks which demonstrate the potential for appreciation. AMERICAN FUNDS GROWTH-INCOME FUND -- Seeks growth of capital and income by investing primarily in common stocks or other securities which demonstrate the potential for appreciation and/or dividends. HARTFORD GLOBAL LEADERS HLS FUND -- Seeks growth of capital by investing primarily in equity securities issued through high-quality growth companies worldwide that, in the opinion of Wellington Management, are leaders within their respective industries as indicated by established market presence and strong competitive position on a global, regional or country basis. Sub-advised by Wellington Management. HARTFORD GLOBAL TECHNOLOGY HLS FUND -- Seeks long-term capital appreciation by investing in equity securities of technology companies worldwide. Sub-advised by Wellington Management. The following text is added under the section entitled "The Funds": The Funds may not be available in all states. Under the section entitled "The Funds", under the sub-section entitled Investment Advisers, the following paragraph is inserted as the first paragraph of the section: American Funds Global Growth Fund, American Funds Global Small Capitalization Fund, American Funds Growth Fund and American Funds Growth-Income Fund are all part of American Funds Insurance Series. American Funds Insurance Series is a fully managed, diversified, open-end investment company organized as a Massachusetts business trust in 1983. American Funds Insurance Series offers two classes of fund shares: Class 1 shares and Class 2 shares. This policy invests only in Class 2 shares of American Funds Insurance Series. The investment adviser for each of the funds of American Funds Insurance Series is Capital Research and Management Company located at 333 South Hope Street, Los Angeles, California 90071. Capital Research and Management Company is a wholly owned subsidiary of The Capital Growth Companies, Inc. Under the section entitled "Investment Advisers", the second paragraph is deleted and replaced with the following: Each Hartford HLS Fund, except for Hartford Global Leaders HLS Fund, Hartford Global Technology HLS Fund and Hartford Growth and Income HLS Fund is a separate Maryland corporation registered with the Securities and Exchange Commission as an open-end management investment company. Hartford Global Leaders HLS Fund and Hartford Growth and Income HLS Fund are diversified series of Hartford Series Fund, Inc., a Maryland corporation, also registered with the Securities and Exchange Commission as an open-end management investment company. Hartford Global Technology HLS Fund is a non-diversified series of Hartford Series Fund, Inc. The shares of each Fund have been divided into Class IA and Class IB. Only Class IA shares are available in this policy. HV-2860 3 of 10 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY -------------------------------------------------------------------------------- The third paragraph under the sub-section entitled "Illustration of Death Benefits, Account Values and Cash Surrender Values" in the section entitled "Statement of Additional Information" is deleted and replaced with the following: The tables reflect the fact that the net return on the assets held in the Sub-Accounts is lower than the gross after-tax return of the Funds. This is because the illustrations assume an investment management fee and other estimated Fund expenses totaling 0.75%. The 0.75% figure is based on an average of the current management fees and expenses of the 42 available Funds, taking into account any applicable expense caps or reimbursement arrangements. Actual fees and expenses of the Funds associated with a policy may be more or less than 0.75%, will vary from year to year, and will depend on how the Account Value is allocated. The six "Illustration of Death Benefits, Account Values and Cash Surrender Values" tables in the section entitled "Statement of Additional Information" are replaced with the attached six tables. The attached Financial Statements are added to the section entitled "Statement of Additional Information." THIS SUPPLEMENT SHOULD BE RETAINED WITH THE PROSPECTUS FOR FUTURE REFERENCE. HV-2860 4 of 10 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY -------------------------------------------------------------------------------- DEATH BENEFIT OPTION: LEVEL GUARANTEE PERIOD: 1 YEAR $250,000 FACE AMOUNT ISSUE AGE 45 MALE PREFERRED PLUS $4,000 SCHEDULED PREMIUM ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)

*These values reflect investment results using current cost of insurance rates, administrative fees, and Mortality and Expense Risk rates. **These values reflect investment results using guaranteed cost of insurance rates, administrative fees, and Mortality and Expense Risk rates. The Death Benefit may, and the Account Values and Cash Surrender Values will differ if premiums are paid in different amounts or frequencies. THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME. HV-2860 5 of 10 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY -------------------------------------------------------------------------------- DEATH BENEFIT OPTION: LEVEL GUARANTEE PERIOD: 1 YEAR $250,000 FACE AMOUNT ISSUE AGE 45 MALE PREFERRED PLUS $4,000 SCHEDULED PREMIUM ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)

*These values reflect investment results using current cost of insurance rates, administrative fees, and Mortality and Expense Risk rates. **These values reflect investment results using guaranteed cost of insurance rates, administrative fees, and Mortality and Expense Risk rates. The Death Benefit may, and the Account Values and Cash Surrender Values will differ if premiums are paid in different amounts or frequencies. THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME. HV-2860 6 of 10 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY -------------------------------------------------------------------------------- DEATH BENEFIT OPTION: LEVEL GUARANTEE PERIOD: 1 YEAR $250,000 FACE AMOUNT ISSUE AGE 45 MALE PREFERRED PLUS $4,000 SCHEDULED PREMIUM ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)

*These values reflect investment results using current cost of insurance rates, administrative fees, and Mortality and Expense Risk rates. **These values reflect investment results using guaranteed cost of insurance rates, administrative fees, and Mortality and Expense Risk rates. The Death Benefit may, and the Account Values and Cash Surrender Values will differ if premiums are paid in different amounts or frequencies. THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME. HV-2860 7 of 10 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY -------------------------------------------------------------------------------- DEATH BENEFIT OPTION: LEVEL GUARANTEE PERIOD: 10 YEARS $250,000 FACE AMOUNT ISSUE AGE 45 MALE PREFERRED PLUS $4,000 SCHEDULED PREMIUM ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.25% NET)

*These values reflect investment results using current cost of insurance rates, administrative fees, and Mortality and Expense Risk rates. **These values reflect investment results using guaranteed cost of insurance rates, administrative fees, and Mortality and Expense Risk rates. The Death Benefit may, and the Account Values and Cash Surrender Values will differ if premiums are paid in different amounts or frequencies. THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME. HV-2860 8 of 10 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY -------------------------------------------------------------------------------- DEATH BENEFIT OPTION: LEVEL GUARANTEE PERIOD: 10 YEARS $250,000 FACE AMOUNT ISSUE AGE 45 MALE PREFERRED PLUS $4,000 SCHEDULED PREMIUM ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.25% NET)

*These values reflect investment results using current cost of insurance rates, administrative fees, and Mortality and Expense Risk rates. **These values reflect investment results using guaranteed cost of insurance rates, administrative fees, and Mortality and Expense Risk rates. The Death Benefit may, and the Account Values and Cash Surrender Values will differ if premiums are paid in different amounts or frequencies. THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME. HV-2860 9 of 10 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY -------------------------------------------------------------------------------- DEATH BENEFIT OPTION: LEVEL GUARANTEE PERIOD: 10 YEARS $250,000 FACE AMOUNT ISSUE AGE 45 MALE PREFERRED PLUS $4,000 SCHEDULED PREMIUM ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.75% NET)

*These values reflect investment results using current cost of insurance rates, administrative fees, and Mortality and Expense Risk rates. **These values reflect investment results using guaranteed cost of insurance rates, administrative fees, and Mortality and Expense Risk rates. The Death Benefit may, and the Account Values and Cash Surrender Values will differ if premiums are paid in different amounts or frequencies. THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME. HV-2860 10 of 10 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY FINANCIAL STATEMENTS -------------------------------------------------------------------------------- INDEX FOR HARTFORD AND FIDELITY SUB-ACCOUNTS Statements of Assets and Liabilities For the Period Ended September 30, 2000 (unaudited)..................... SA-2 Statements of Operations For the Period Ended September 30, 2000 (unaudited)..................... SA-4 Statements of Changes in Net Assets For the Period Ended September 30, 2000 (unaudited)..................... SA-6 INDEX FOR PUTNAM SUB-ACCOUNTS Statements of Assets and Liabilities For the Period Ended September 30, 2000 (unaudited)..................... SA-8 Statements of Operations For the Period Ended September 30, 2000 (unaudited)..................... SA-12 Statements of Changes in Net Assets For the Period Ended September 30, 2000 (unaudited)..................... SA-15

SA-1 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) -------------------------------------------------------------------------------- September 30, 2000 Bond Stock Money Advisers Capital Mortgage Index Fund Fund Market Fund Appreciation Securities Fund Sub-Account Sub-Account Fund Sub-Account Fund Fund Sub-Account Sub-Account Sub-Account Sub-Account -------------------------------------------------------------------------------------------------------------------------- ASSETS Investments: -------------------------------------------------------------------------------------------------------------------------- HARTFORD BOND HLS FUND, INC. -- CLASS IA Shares 13,643,119 Cost $14,431,575 ......................................................................................................................... Market Value $14,507,329 $ -- $ -- $ -- $ -- $ -- $ -- -------------------------------------------------------------------------------------------------------------------------- HARTFORD STOCK HLS FUND, INC. -- CLASS IA Shares 13,086,490 Cost $84,205,177 ......................................................................................................................... Market Value -- 81,343,099 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- HARTFORD MONEY MARKET HLS FUND, INC. -- CLASS IA Shares 36,519,763 Cost $36,519,763 ......................................................................................................................... Market Value -- -- 36,519,763 -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- HARTFORD ADVISERS HLS FUND, INC. -- CLASS IA Shares 14,055,338 Cost $40,081,143 ......................................................................................................................... Market Value -- -- -- 38,134,198 -- -- -- -------------------------------------------------------------------------------------------------------------------------- HARTFORD CAPITAL APPRECIATION HLS FUND, INC. -- CLASS IA Shares 11,182,083 Cost $60,071,250 ......................................................................................................................... Market Value -- -- -- -- 70,610,458 -- -- -------------------------------------------------------------------------------------------------------------------------- HARTFORD MORTGAGE SECURITIES HLS FUND, INC. -- CLASS IA Shares 1,014,534 Cost $1,106,370 ......................................................................................................................... Market Value -- -- -- -- -- 1,113,951 -- -------------------------------------------------------------------------------------------------------------------------- HARTFORD INDEX HLS FUND, INC. -- CLASS IA Shares 8,754,516 Cost $31,660,930 ......................................................................................................................... Market Value -- -- -- -- -- -- 35,692,303 -------------------------------------------------------------------------------------------------------------------------- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. -- CLASS IA Shares 8,618,478 Cost $12,825,896 ......................................................................................................................... Market Value -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Due from Hartford Life & Annuity Insurance Company 150,933 179,214 2,332,555 135,462 165,905 15,888 137,378 ......................................................................................................................... Receivable from fund shares sold -- -- -- -- -- -- -- ......................................................................................................................... Total Assets 14,658,262 81,522,313 38,852,318 38,269,660 70,776,363 1,129,839 35,829,681 ......................................................................................................................... LIABILITIES: Due to Hartford Life & Annuity Insurance Company -- -- -- -- -- -- -- ......................................................................................................................... Payable for fund shares purchased 150,968 179,680 2,328,216 135,429 166,279 15,894 138,722 ......................................................................................................................... Total Liabilities 150,968 179,680 2,328,216 135,429 166,279 15,894 138,722 -------------------------------------------------------------------------------------------------------------------------- NET ASSETS (VARIABLE LIFE CONTRACT LIABILITIES) $14,507,294 $81,342,633 $36,524,102 $38,134,231 $70,610,084 $1,113,945 $35,690,959 -------------------------------------------------------------------------------------------------------------------------- Units Owned by Participants 9,274,025 22,234,544 25,556,915 14,145,637 17,382,099 716,255 10,133,256 ......................................................................................................................... Unit Values $ 1.564293 $ 3.658390 $ 1.429128 $ 2.695830 $ 4.062230 $ 1.555236 $ 3.522161 -------------------------------------------------------------------------------------------------------------------------- September 30, 2000 International Opportunities Fund Sub-Account ------------------------------------------------------------ ASSETS Investments: ------------------------------------------------------------------------ HARTFORD BOND HLS FUND, INC. -- CLASS IA Shares 13,643,119 Cost $14,431,575 ................................ Market Value $ -- ------------------------------------------------------------------------------------ HARTFORD STOCK HLS FUND, INC. -- CLASS IA Shares 13,086,490 Cost $84,205,177 ................................ Market Value -- ------------------------------------------------------------------------------------------------ HARTFORD MONEY MARKET HLS FUND, INC. -- CLASS IA Shares 36,519,763 Cost $36,519,763 ................................ Market Value -- ------------------------------------------------------------------------------------------------------------ HARTFORD ADVISERS HLS FUND, INC. -- CLASS IA Shares 14,055,338 Cost $40,081,143 ................................ Market Value -- ------------------------------------------------------------------------------------------------------------------------ HARTFORD CAPITAL APPRECIATION HLS FUND, INC. -- CLASS IA Shares 11,182,083 Cost $60,071,250 ................................ Market Value -- -------------------------------------------------------------------------------------------------------------------------- HARTFORD MORTGAGE SECURITIES HLS FUND, INC. -- CLASS IA Shares 1,014,534 Cost $1,106,370 ................................ Market Value -- -------------------------------------------------------------------------------------------------------------------------- HARTFORD INDEX HLS FUND, INC. -- CLASS IA Shares 8,754,516 Cost $31,660,930 ................................ Market Value -- -------------------------------------------------------------------------------------------------------------------------- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. -- CLASS IA Shares 8,618,478 Cost $12,825,896 ................................ Market Value 12,558,768 -------------------------------------------------------------------------------------------------------------------------- Due from Hartford Life & Annuity Insurance Company 98,053 ................................ Receivable from fund shares sold -- ................................ Total Assets 12,656,821 ................................ LIABILITIES: Due to Hartford Life & Annuity Insurance Company -- ................................ Payable for fund shares purchased 98,191 ................................ Total Liabilities 98,191 -------------------------------------------------------------------------------------------------------------------------- NET ASSETS (VARIABLE LIFE CONTRACT LIABILITIES) $12,558,630 -------------------------------------------------------------------------------------------------------------------------- Units Owned by Participants 6,014,160 ................................ Unit Values $ 2.088177 --------------------------------------------------------------------------------------------------------------------------
SA-2 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- September 30, 2000 Dividend Growth International Small MidCap Fidelity Fidelity Fidelity and Growth and Income Advisers Company Fund VIP VIP VIP II Fund Fund Fund Fund Sub-Account Equity-Income Overseas Asset Sub-Account Sub-Account Sub-Account Sub-Account Portfolio Portfolio Manager Sub-Account Sub-Account Portfolio Sub-Account ------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments: ------------------------------------------------------------------------------------------------------------------------------- HARTFORD DIVIDEND AND GROWTH HLS FUND, INC. -- CLASS IA Shares 12,889,773 Cost $26,595,604 .............................................................................................................................. Market Value $26,467,949 $ -- $ -- $ -- $ -- $ -- $ -- $ -- ------------------------------------------------------------------------------------------------------------------------------- HARTFORD GROWTH AND INCOME HLS FUND, INC. -- CLASS IA Shares 4,174,639 Cost $5,731,014 .............................................................................................................................. Market Value -- 6,005,823 -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC. -- CLASS IA Shares 533,544 Cost $693,903 .............................................................................................................................. Market Value -- -- 656,050 -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- HARTFORD SMALL COMPANY HLS FUND, INC. -- CLASS IA Shares 5,471,936 Cost $11,332,623 .............................................................................................................................. Market Value -- -- -- 10,434,867 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- HARTFORD MIDCAP HLS FUND, INC. -- CLASS IA Shares 5,857,498 Cost $12,710,913 .............................................................................................................................. Market Value -- -- -- -- 15,377,199 -- -- -- ------------------------------------------------------------------------------------------------------------------------------- FIDELITY VIP EQUITY-INCOME PORTFOLIO Shares 542,193 Cost $13,193,347 .............................................................................................................................. Market Value -- -- -- -- -- 13,305,425 -- -- ------------------------------------------------------------------------------------------------------------------------------- FIDELITY VIP OVERSEAS PORTFOLIO Shares 243,823 Cost $5,253,574 .............................................................................................................................. Market Value -- -- -- -- -- -- 5,305,578 -- ------------------------------------------------------------------------------------------------------------------------------- FIDELITY VIP II ASSET MANAGER PORTFOLIO Shares 142,813 Cost $2,418,803 .............................................................................................................................. Market Value -- -- -- -- -- -- -- 2,376,414 ------------------------------------------------------------------------------------------------------------------------------- Due from Hartford Life & Annuity Insurance Company 45,161 21,076 8,572 94,841 179,123 -- 3,612 -- .............................................................................................................................. Receivable from fund shares sold -- -- -- -- -- 1,941 -- -- .............................................................................................................................. Total Assets 26,513,110 6,026,899 664,622 10,529,708 15,556,322 13,307,366 5,309,190 2,376,414 .............................................................................................................................. LIABILITIES: Due to Hartford Life & Annuity Insurance Company -- -- -- -- -- 2,174 -- 34 .............................................................................................................................. Payable for fund shares purchased 45,634 21,060 8,575 94,863 179,126 -- 3,573 -- .............................................................................................................................. Total Liabilities 45,634 21,060 8,575 94,863 179,126 2,174 3,573 34 ------------------------------------------------------------------------------------------------------------------------------- NET ASSETS (VARIABLE LIFE CONTRACT LIABILITIES) $26,467,476 $6,005,839 $656,047 $10,434,845 $15,377,196 $13,305,192 $5,305,617 $2,376,380 ------------------------------------------------------------------------------------------------------------------------------- Units Owned by Participants 10,269,622 4,220,773 554,526 5,953,053 6,891,345 6,126,148 2,762,735 1,222,448 .............................................................................................................................. Unit Values $ 2.577259 $ 1.422924 $1.183079 $ 1.752856 $ 2.231378 $ 2.171869 $ 1.920422 $ 1.943951 -------------------------------------------------------------------------------------------------------------------------------
SA-3 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF OPERATIONS (UNAUDITED) -------------------------------------------------------------------------------- For the Period Ended Bond Stock Money Advisers Capital Mortgage Index September 30, 2000 Fund Fund Market Fund Appreciation Securities Fund Sub-Account Sub-Account Fund Sub-Account Fund Fund Sub-Account Sub-Account Sub-Account Sub-Account -------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ 81,181 $ 18,733 $1,328,132 $ 76,419 $ 24,486 $ 7,896 $ 3,350 ......................................................................................................................... Capital gains income -- 7,736,475 (726) 3,041,584 8,090,247 -- 314,343 ......................................................................................................................... NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: ......................................................................................................................... Net realized gain (loss) on security transactions 178,706 40,847 -- 31,014 53,092 1,552 (14,373) ......................................................................................................................... Net unrealized appreciation (depreciation) of investments during the period 869,995 (9,889,586) -- (3,011,624) 1,336,175 56,529 (905,387) ......................................................................................................................... Net gain (loss) on investments 1,048,701 (9,848,739) -- (2,980,610) 1,389,267 58,081 (919,760) -------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $1,129,882 $(2,093,531) $1,327,406 $ 137,393 $9,504,000 $65,977 $(602,067) -------------------------------------------------------------------------------------------------------------------------- For the Period Ended International September 30, 2000 Opportunities Fund Sub-Account -------------------------------------------------------------- INVESTMENT INCOME: Dividends $ 80,238 ................................ Capital gains income 1,285,199 ................................ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: ................................ Net realized gain (loss) on security transactions 565 ................................ Net unrealized appreciation (depreciation) of investments during the period (2,861,949) ................................ Net gain (loss) on investments (2,861,384) --------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $(1,495,947) ----------------------------------------------------------------------------------------
SA-4 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- For the Period Ended Dividend Growth International Small MidCap Fidelity Fidelity September 30, 2000 and Growth and Income Advisers Company Fund VIP VIP Fund Fund Fund Fund Sub-Account Equity-Income Overseas Sub-Account Sub-Account Sub-Account Sub-Account Portfolio Portfolio Sub-Account Sub-Account -------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ 18,548 $ 226 $ 6,192 $ -- $ -- $ 195,271 $ 54,276 ......................................................................................................................... Capital gains income 2,037,100 46,975 33,553 1,052,639 436,329 735,671 341,794 ......................................................................................................................... NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: ......................................................................................................................... Net realized gain (loss) on security transactions 7,684 8,317 (148) 74,383 (285) 44,226 380 ......................................................................................................................... Net unrealized (depreciation) of investments during the period (776,953) (14,130) (62,934) (1,637,799) 2,018,046 (402,633) (1,008,088) ......................................................................................................................... Net (loss) on investments (769,269) (5,813) (63,082) (1,563,416) 2,017,761 (358,407) (1,007,708) -------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $1,286,379 $ 41,388 $(23,337) $ (510,777) $2,454,090 $ 572,535 $ (611,638) -------------------------------------------------------------------------------------------------------------------------- For the Period Ended Fidelity September 30, 2000 VIP II Asset Manager Portfolio Sub-Account ----------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ 59,219 ................................ Capital gains income 139,516 ................................ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: ................................ Net realized gain (loss) on security transactions 1,959 ................................ Net unrealized (depreciation) of investments during the period (198,297) ................................ Net (loss) on investments (196,338) ---------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 2,397 --------------------------------------------------------------------------------------------------------------------------
SA-5 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) -------------------------------------------------------------------------------- For the Period Ended Bond Stock Money Advisers Capital Mortgage Index September 30, 2000 Fund Fund Market Fund Appreciation Securities Fund Sub-Account Sub-Account Fund Sub-Account Fund Fund Sub-Account Sub-Account Sub-Account Sub-Account -------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income $ 81,181 $ 18,733 $ 1,328,132 $ 76,419 $ 24,486 $ 7,896 $ 3,350 ......................................................................................................................... Capital gains income -- 7,736,475 (726) 3,041,584 8,090,247 -- 314,343 ......................................................................................................................... Net realized gain (loss) on security transactions 178,706 40,847 -- 31,014 53,092 1,552 (14,373) ......................................................................................................................... Net unrealized appreciation (depreciation) of investments during the period 869,995 (9,889,586) -- (3,011,624) 1,336,175 56,529 (905,387) ......................................................................................................................... Net increase (decrease) in net assets resulting from operations 1,129,882 (2,093,531) 1,327,406 137,393 9,504,000 65,977 (602,067) ......................................................................................................................... UNIT TRANSACTIONS: Purchases 3,091,324 14,606,354 137,812,887 6,244,257 10,087,413 249,140 6,858,781 ......................................................................................................................... Net transfers (1,259,302) 19,120,565 (128,023,608) 7,553,082 15,869,136 (26,184) 2,178,320 ......................................................................................................................... Surrenders for benefit payments and fees (501,400) (1,781,929) (928,909) (1,103,078) (1,443,218) (65,050) (1,034,327) ......................................................................................................................... Net loan withdrawals (279,235) (443,047) (6,812,907) (95,499) (637,325) (5,815) (304,543) ......................................................................................................................... Cost of insurance (630,773) (3,630,881) (4,763,737) (1,702,019) (2,589,213) (38,788) (1,660,662) ......................................................................................................................... Net increase (decrease) in net assets resulting from unit transactions 420,614 27,871,062 (2,716,274) 10,896,743 21,286,793 113,303 6,037,569 ......................................................................................................................... Total increase (decrease) in net assets 1,550,496 25,777,531 (1,388,868) 11,034,136 30,790,793 179,280 5,435,502 ......................................................................................................................... NET ASSETS: Beginning of period 12,956,798 55,565,102 37,912,970 27,100,095 39,819,291 934,665 30,255,457 -------------------------------------------------------------------------------------------------------------------------- END OF PERIOD $14,507,294 $81,342,633 $36,524,102 $38,134,231 $70,610,084 $1,113,945 $35,690,959 -------------------------------------------------------------------------------------------------------------------------- For the Period Ended International September 30, 2000 Opportunities Fund Sub-Account -------------------------------------------------------------- OPERATIONS: Net investment income $ 80,238 ................................ Capital gains income 1,285,199 ................................ Net realized gain (loss) on security transactions 565 ................................ Net unrealized appreciation (depreciation) of investments during the period (2,861,949) ................................ Net increase (decrease) in net assets resulting from operations (1,495,947) ................................ UNIT TRANSACTIONS: Purchases 2,179,053 ................................ Net transfers 3,238,145 ................................ Surrenders for benefit payments and fees (395,889) ................................ Net loan withdrawals (142,954) ................................ Cost of insurance (461,637) ................................ Net increase (decrease) in net assets resulting from unit transactions 4,416,718 ................................ Total increase (decrease) in net assets 2,920,771 ................................ NET ASSETS: Beginning of period 9,637,859 --------------------------------------------------------------------------- END OF PERIOD $12,558,630 ----------------------------------------------------------------------------------------
SA-6 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- For the Period Ended Dividend Growth International Small MidCap Fidelity Fidelity September 30, 2000 and Growth and Income Advisers Company Fund VIP VIP Fund Fund Fund Fund Sub-Account Equity-Income Overseas Sub-Account Sub-Account Sub-Account Sub-Account Portfolio Portfolio Sub-Account Sub-Account -------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income $ 18,548 $ 226 $ 6,192 $ -- $ -- $ 195,271 $ 54,276 ......................................................................................................................... Capital gains income 2,037,100 46,975 33,553 1,052,639 436,329 735,671 341,794 ......................................................................................................................... Net realized gain (loss) on security transactions 7,684 8,317 (148) 74,383 (285) 44,226 380 ......................................................................................................................... Net unrealized (depreciation) appreciation of investments during the period (776,953) (14,130) (62,934) (1,637,799) 2,018,046 (402,633) (1,008,088) ......................................................................................................................... Net increase (decrease) in net assets resulting from operations 1,286,379 41,388 (23,337) (510,777) 2,454,090 572,535 (611,638) ......................................................................................................................... UNIT TRANSACTIONS: Purchases 4,647,483 987,840 103,472 1,507,227 1,568,103 2,208,755 1,031,244 ......................................................................................................................... Net transfers 2,500,972 2,553,752 404,302 7,111,629 7,989,809 299,416 1,358,540 ......................................................................................................................... Surrenders for benefit payments and fees (513,678) (162,335) (2,863) (313,424) (151,273) (446,705) (133,274) ......................................................................................................................... Net loan withdrawals (455,054) (14,641) (3,745) (24,957) (34,449) (59,492) (36,989) ......................................................................................................................... Cost of insurance (1,025,840) (356,185) (35,457) (391,219) (499,744) (486,411) (170,658) ......................................................................................................................... Net increase in net assets resulting from unit transactions 5,153,883 3,008,431 465,709 7,889,256 8,872,446 1,515,563 2,048,863 ......................................................................................................................... Total increase in net assets 6,440,262 3,049,819 442,372 7,378,479 11,326,536 2,088,098 1,437,225 ......................................................................................................................... NET ASSETS: Beginning of period 20,027,214 2,956,020 213,675 3,056,366 4,050,660 11,217,094 3,868,392 -------------------------------------------------------------------------------------------------------------------------- END OF PERIOD $26,467,476 $6,005,839 $656,047 $10,434,845 $15,377,196 $13,305,192 $5,305,617 -------------------------------------------------------------------------------------------------------------------------- For the Period Ended Fidelity September 30, 2000 VIP II Asset Manager Portfolio Sub-Account ----------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income $ 59,219 ................................ Capital gains income 139,516 ................................ Net realized gain (loss) on security transactions 1,959 ................................ Net unrealized (depreciation) appreciation of investments during the period (198,297) ................................ Net increase (decrease) in net assets resulting from operations 2,397 ................................ UNIT TRANSACTIONS: Purchases 486,719 ................................ Net transfers 134,621 ................................ Surrenders for benefit payments and fees (169,705) ................................ Net loan withdrawals 12,892 ................................ Cost of insurance (87,121) ................................ Net increase in net assets resulting from unit transactions 377,406 ................................ Total increase in net assets 379,803 ................................ NET ASSETS: Beginning of period 1,996,577 ----------------------------------------------------------------------------------------------------------------- END OF PERIOD $2,376,380 --------------------------------------------------------------------------------------------------------------------------
SA-7 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF ASSETS & LIABILITIES (UNAUDITED) -------------------------------------------------------------------------------- September 30, 2000 Asia Diversified The George Global Asset Global Growth Health Pacific Income Putnam Fund Allocation Growth and Income Sciences Growth Sub-Account of Boston Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account ----------------------------------------------------------------------------------------------------------------------------- ASSETS Investments: ----------------------------------------------------------------------------------------------------------------------------- PUTNAM VT ASIA PACIFIC GROWTH FUND Shares 123,132 Cost $1,704,369 ............................................................................................................................ Market Value: $1,382,778 $ -- $ -- $ -- $ -- $ -- $ -- ----------------------------------------------------------------------------------------------------------------------------- PUTNAM VT DIVERSIFIED INCOME FUND Shares 122,674 Cost $1,246,822 ............................................................................................................................ Market Value: -- 1,131,054 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- PUTNAM VT THE GEORGE PUTNAM FUND OF BOSTON Shares 105,554 Cost $1,076,273 ............................................................................................................................ Market Value: -- -- 1,100,933 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL ASSET ALLOCATION FUND Shares 147,101 Cost $2,667,861 ............................................................................................................................ Market Value: -- -- -- 2,528,668 -- -- -- ----------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL GROWTH FUND Shares 968,263 Cost $20,820,462 ............................................................................................................................ Market Value: -- -- -- -- 21,117,805 -- -- ----------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Shares 1,156,682 Cost $30,317,558 ............................................................................................................................ Market Value: -- -- -- -- -- $28,685,716 -- ----------------------------------------------------------------------------------------------------------------------------- PUTNAM VT HEALTH SCIENCES FUND Shares 308,365 Cost $3,504,914 ............................................................................................................................ Market Value: -- -- -- -- -- -- 4,542,210 ----------------------------------------------------------------------------------------------------------------------------- Due from Hartford Life Insurance Company 367 -- 2,573 2,041 12,503 29,068 16,051 ............................................................................................................................ Receivable from fund shares sold -- 422 -- -- -- -- -- ............................................................................................................................ Total Assets 1,383,145 1,131,476 1,103,506 2,530,709 21,130,308 28,714,784 4,558,261 ............................................................................................................................ LIABILITIES Due to Hartford Life Insurance Company -- 421 -- -- -- -- -- ............................................................................................................................ Payable for fund shares purchased 142 -- 2,573 2,000 12,439 30,395 15,476 ............................................................................................................................ TOTAL LIABILITIES 142 421 2,573 2,000 12,439 30,395 15,476 ----------------------------------------------------------------------------------------------------------------------------- NET ASSETS (VARIABLE LIFE CONTRACT LIABILITIES) $1,383,003 $1,131,055 $1,100,933 $2,528,709 $21,117,869 $28,684,389 $4,542,785 -----------------------------------------------------------------------------------------------------------------------------
SA-8 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF ASSETS & LIABILITIES (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- September 30, 2000 High Yield Income International International International Investors Money Sub-Account Sub-Account Growth Growth and New Sub-Account Market Sub-Account Income Opportunities Sub-Account Sub-Account Sub-Account ------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments: ------------------------------------------------------------------------------------------------------------------------------ PUTNAM VT HIGH YIELD FUND Shares 1,134,887 Cost $12,412,090 ............................................................................................................................. Market Value: $10,872,217 $ -- $ -- $ -- $ -- $ -- $ -- ------------------------------------------------------------------------------------------------------------------------------ PUTNAM VT INCOME FUND Shares 239,080 Cost $3,115,168 ............................................................................................................................. Market Value: -- 2,926,341 -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ PUTNAM VT INTERNATIONAL GROWTH FUND Shares 338,722 Cost $6,328,548 ............................................................................................................................. Market Value: -- -- 6,117,314 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ PUTNAM VT INTERNATIONAL GROWTH AND INCOME FUND Shares 197,519 Cost $2,848,566 ............................................................................................................................. Market Value: -- -- -- 2,518,370 -- -- -- ------------------------------------------------------------------------------------------------------------------------------ PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES FUND Shares 213,092 Cost $4,392,937 ............................................................................................................................. Market Value: -- -- -- -- 3,590,608 -- -- ------------------------------------------------------------------------------------------------------------------------------ PUTNAM VT INVESTORS FUND Shares 509,035 Cost $6,916,629 ............................................................................................................................. Market Value: -- -- -- -- -- 7,396,276 -- ------------------------------------------------------------------------------------------------------------------------------ PUTNAM VT MONEY MARKET FUND Shares 2,045,746 Cost $2,045,746 ............................................................................................................................. Market Value: -- -- -- -- -- -- 2,045,746 ------------------------------------------------------------------------------------------------------------------------------ Due from Hartford Life Insurance Company 6,108 -- 41,867 18,421 10,615 13,089 6,000 ............................................................................................................................. Receivable from fund shares sold -- 431 -- -- -- -- -- ............................................................................................................................. Total Assets 10,878,325 2,926,772 6,159,181 2,536,791 3,601,223 7,409,365 2,051,746 ............................................................................................................................. LIABILITIES Due to Hartford Life Insurance Company -- 420 -- -- -- -- 5,825 ............................................................................................................................. Payable for fund shares purchased 6,111 -- 42,081 18,417 10,530 13,102 -- ............................................................................................................................. TOTAL LIABILITIES 6,111 420 42,081 18,417 10,530 13,102 5,825 ------------------------------------------------------------------------------------------------------------------------------ NET ASSETS (VARIABLE LIFE CONTRACT LIABILITIES) $10,872,214 $2,926,352 $6,117,100 $2,518,374 $3,590,693 $7,396,263 $2,045,921 ------------------------------------------------------------------------------------------------------------------------------
SA-9 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF ASSETS & LIABILITIES (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- September 30, 2000 New New OTC & Utilities Vista Voyager Opportunities Value Emerging Growth Sub-Account Sub-Account Sub-Account Sub-Account Growth and Income Sub-Account Sub-Account -------------------------------------------------------------------------------------------------------------- ASSETS Investments: -------------------------------------------------------------------------------------------------------------- PUTNAM VT NEW OPPORTUNITIES FUND Shares 704,163 Cost $22,809,777 ............................................................................................................. Market Value: $29,553,738 $ -- $ -- $ -- $ -- $ -- -------------------------------------------------------------------------------------------------------------- PUTNAM VT NEW VALUE FUND Shares 147,924 Cost $1,758,386 ............................................................................................................. Market Value: -- 1,823,908 -- -- -- -- -------------------------------------------------------------------------------------------------------------- PUTNAM VT OTC & EMERGING GROWTH FUND Shares 420,685 Cost $8,686,713 ............................................................................................................. Market Value: -- -- 7,803,707 -- -- -- -------------------------------------------------------------------------------------------------------------- PUTNAM VT UTILITIES GROWTH & INCOME FUND Shares 203,111 Cost $3,387,456 ............................................................................................................. Market Value: -- -- -- 3,593,035 -- -- -------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND Shares 189,200 Cost $4,059,430 ............................................................................................................. Market Value: -- -- -- -- 4,690,257 -- -------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Shares 798,663 Cost $40,746,860 ............................................................................................................. Market Value: -- -- -- -- -- 45,691,507 -------------------------------------------------------------------------------------------------------------- Due from Hartford Life Insurance Company 60,819 4,355 -- 1,517 29,973 -- ............................................................................................................. Receivable from fund shares sold -- -- 2,261,983 -- -- 545,132 ............................................................................................................. Total Assets 29,614,557 1,828,263 10,065,690 3,594,552 4,720,230 46,236,639 ............................................................................................................. LIABILITIES Due to Hartford Life Insurance Company -- -- 2,263,201 -- -- 545,960 ............................................................................................................. Payable for fund shares purchased 61,470 4,321 -- 2,496 30,339 -- ............................................................................................................. TOTAL LIABILITIES 61,470 4,321 2,263,201 2,496 30,339 545,960 -------------------------------------------------------------------------------------------------------------- NET ASSETS (VARIABLE LIFE CONTRACT LIABILITIES) $29,553,087 $1,823,942 $ 7,802,489 $3,592,056 $4,689,891 $45,690,679 --------------------------------------------------------------------------------------------------------------
SA-10 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF ASSETS & LIABILITIES (UNAUDITED) (CONTINUED) ---------------------------------------------------------------------------------- September 30, 2000 Units Unit Contract Owned by Price Liability Participants ---------------------------------------------------------------------------------- Variable life contracts: Asia Pacific Growth Fund 92,599 $14.935338 $ 1,383,003 ................................................................................. Diversified Income Fund 86,252 13.113302 1,131,055 ................................................................................. George Putnam Fund of Boston 99,717 11.040569 1,100,933 ................................................................................. Global Asset Allocation Fund 110,835 22.815002 2,528,709 ................................................................................. Global Growth Fund 640,322 32.980056 21,117,869 ................................................................................. Growth and Income Fund 1,066,866 26.886600 28,684,389 ................................................................................. Health Sciences 299,824 15.151502 4,542,785 ................................................................................. High Yield Fund 674,699 16.114172 10,872,214 ................................................................................. Income Fund 193,821 15.098227 2,926,352 ................................................................................. International Growth Fund 422,941 14.463235 6,117,100 ................................................................................. International Growth and Income Fund 212,655 11.842557 2,518,374 ................................................................................. International New Opportunities Fund 240,228 14.947040 3,590,693 ................................................................................. Investors Fund 530,200 13.949961 7,396,263 ................................................................................. Money Market Fund 1,442,702 1.418117 2,045,921 ................................................................................. New Opportunities Fund 739,381 39.970028 29,553,087 ................................................................................. New Value Fund 153,343 11.894540 1,823,942 ................................................................................. OTC & Emerging Growth Fund 389,270 20.043914 7,802,489 ................................................................................. Utilities Growth & Income Fund 145,635 24.664702 3,592,056 ................................................................................. Vista Fund 238,588 19.656868 4,689,891 ................................................................................. Voyager Fund 1,022,366 44.691134 45,690,679 ................................................................................. GRAND TOTAL: $189,107,804 ----------------------------------------------------------------------------------
SA-11 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF OPERATIONS (UNAUDITED) -------------------------------------------------------------------------------- For the Period Ended Asia Diversified The George Global Global Growth Health September 30, 2000 Pacific Income Putnam Asset Growth and Income Sciences Growth Sub-Account Fund Allocation Sub-Account Sub-Account Sub-Account Sub-Account of Boston Sub-Account Sub-Account ----------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ 40,548 $80,320 $ -- $ 38,909 $ 125,219 $ 387,912 $ -- ...................................................................................................................... Capital gains income -- -- -- 203,203 3,120,633 1,826,387 -- ...................................................................................................................... NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: ...................................................................................................................... Net realized (loss) gain on security transactions (6,316) 972 (575) 17 31,048 16,662 (31,220) ...................................................................................................................... Net unrealized (depreciation) appreciation of investments during the period (583,228) (71,127) 50,246 (275,929) (6,595,877) (1,021,167) 1,000,510 ...................................................................................................................... Net (loss) gain on investments (589,544) (70,155) 49,671 (275,912) (6,564,829) (1,004,505) 969,290 ----------------------------------------------------------------------------------------------------------------------- NET (DECREASE) INCREASE IN NET ASSETS RESULTING FROM OPERATIONS: $(548,996) $10,165 $49,671 $(33,800) $(3,318,977) $1,209,794 $969,290 -----------------------------------------------------------------------------------------------------------------------
SA-12 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- For the Period Ended High Yield Income International International International Investors Money September 30, 2000 Sub-Account Sub-Account Growth Growth and New Sub-Account Market Sub-Account Income Opportunities Sub-Account Sub-Account Sub-Account ---------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ 1,083,194 $183,258 $ 71,242 $127,626 $ 1,170 $ -- $ 58,023 ........................................................................................................................... Capital gains income -- -- 309,003 279,766 109,881 -- -- ........................................................................................................................... NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: ........................................................................................................................... Net realized gain (loss) on security transactions 5 (2,297) (490) (86,915) (2,625) 565 -- ........................................................................................................................... Net unrealized (depreciation) of investments during the period (1,325,070) (52,297) (850,702) (410,031) (1,029,081) (179,262) -- ........................................................................................................................... Net (loss) on investments (1,325,065) (54,594) (851,192) (496,946) (1,031,706) (178,697) -- ---------------------------------------------------------------------------------------------------------------------------- NET (DECREASE) INCREASE IN NET ASSETS RESULTING FROM OPERATIONS: $ (241,871) $128,664 $(470,947) $(89,554) $ (920,655) $(178,697) $ 58,023 ----------------------------------------------------------------------------------------------------------------------------
SA-13 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- For the Period Ended New New OTC & Utilities Vista Voyager September 30, 2000 Opportunities Value Emerging Growth Sub-Account Sub-Account Sub-Account Sub-Account Growth and Income Sub-Account Sub-Account -------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ -- $ 17,148 $ -- $ 93,886 $ -- $ 11,639 ............................................................................................................. Capital gains income 1,732,437 60,728 60,050 165,739 24,883 4,938,560 ............................................................................................................. NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: ............................................................................................................. Net realized (loss) gain on security transactions (14,293) (138,999) (99,530) 5,887 (1,450) (51,831) ............................................................................................................. Net unrealized (depreciation) appreciation of investments during the period (1,177,155) 100,934 (1,497,426) 176,229 410,585 (6,091,215) ............................................................................................................. Net (loss) gain on investments (1,191,448) (38,065) (1,596,956) 182,116 409,135 (6,143,046) -------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: $ 540,989 $ 39,811 $(1,536,906) $441,741 $434,018 $(1,192,847) --------------------------------------------------------------------------------------------------------------
SA-14 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) -------------------------------------------------------------------------------- For the Period Ended Asia Diversified The Global Global Growth Health September 30, 2000 Pacific Income George Asset Growth and Income Sciences Growth Sub-Account Putnam Allocation Sub-Account Sub-Account Sub-Account Sub-Account Fund of Sub-Account Boston Sub-Account -------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income $ 40,548 $ 80,320 $ -- $ 38,909 $ 125,219 $ 387,912 $ -- ................................................................................................................... Capital gains income -- -- -- 203,203 3,120,633 1,826,387 -- ................................................................................................................... Net realized (loss) gain on security transactions (6,316) 972 (575) 17 31,048 16,662 (31,220) ................................................................................................................... Net unrealized (depreciation) appreciation of investments during the period (583,228) (71,127) 50,246 (275,929) (6,595,877) (1,021,167) 1,000,510 ................................................................................................................... Net (decrease) increase in net assets resulting from operations (548,996) 10,165 49,671 (33,800) (3,318,977) 1,209,794 969,290 ................................................................................................................... UNIT TRANSACTIONS: Purchases 213,787 156,758 162,548 324,802 3,560,313 4,136,989 495,300 ................................................................................................................... Net transfers 862,737 (5,716) 327,073 507,002 3,704,614 8,398,617 1,655,957 ................................................................................................................... Surrenders for benefit payments and fees (171,946) (4,363) (11,981) (133,290) (463,294) (822,417) (128,862) ................................................................................................................... Net loan activity 66,208 (1,318) (7,936) (31,429) (336,920) (134,188) (10,229) ................................................................................................................... Cost of insurance (64,214) (48,863) (56,902) (91,496) (783,033) (1,056,729) (178,428) ................................................................................................................... Net increase in net assets resulting from unit transactions 906,572 96,498 412,802 575,589 5,681,680 10,522,272 1,833,738 ................................................................................................................... Total increase in net assets 357,576 106,663 462,473 541,789 2,362,703 11,732,066 2,803,028 ................................................................................................................... NET ASSETS: Beginning of period 1,025,427 1,024,392 638,460 1,986,920 18,755,166 16,952,323 1,739,757 -------------------------------------------------------------------------------------------------------------------- END OF PERIOD $1,383,003 $1,131,055 $1,100,933 $2,528,709 $21,117,869 $28,684,389 $4,542,785 --------------------------------------------------------------------------------------------------------------------
SA-15 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- For the Period Ended High Yield Income International International International Investors Money September 30, 2000 Sub-Account Sub-Account Growth Growth and New Sub-Account Market Sub-Account Income Opportunities Sub-Account Sub-Account Sub-Account ------------------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income $ 1,083,194 $ 183,258 $ 71,242 $ 127,626 $ 1,170 $ -- $ 58,023 ............................................................................................................................. Capital gains income -- -- 309,003 279,766 109,881 -- -- ............................................................................................................................. Net realized gain (loss) on security transactions 5 (2,297) (490) (86,915) (2,625) 565 -- ............................................................................................................................. Net unrealized (depreciation) appreciation of investments during the period (1,325,070) (52,297) (850,702) (410,031) (1,029,081) (179,262) -- ............................................................................................................................. Net (decrease) increase in net assets resulting from operations (241,871) 128,664 (470,947) (89,554) (920,655) (178,697) 58,023 ............................................................................................................................. UNIT TRANSACTIONS: Purchases 1,821,795 415,426 714,094 315,099 772,793 986,911 204,949 ............................................................................................................................. Net transfers 1,821,219 180,305 3,860,416 1,662,163 3,152,109 2,819,029 916,830 ............................................................................................................................. Surrenders for benefit payments and fees (295,016) (121,756) (131,183) (31,361) (40,870) (104,211) 12,405 ............................................................................................................................. Net loan activity (156,785) (29,810) 52,523 (34,942) (16,626) 20,061 51,216 ............................................................................................................................. Cost of insurance (373,536) (129,358) (257,893) (122,847) (170,611) (336,946) (43,847) ............................................................................................................................. Net increase in net assets resulting from unit transactions 2,817,677 314,807 4,237,957 1,788,112 3,696,795 3,384,844 1,141,553 ............................................................................................................................. Total increase in net assets 2,575,806 443,471 3,767,010 1,698,558 2,776,140 3,206,147 1,199,576 ............................................................................................................................. NET ASSETS: Beginning of period 8,296,408 2,482,881 2,350,090 819,816 814,553 4,190,116 846,345 ------------------------------------------------------------------------------------------------------------------------------ END OF PERIOD $10,872,214 $2,926,352 $6,117,100 $2,518,374 $3,590,693 $7,396,263 $2,045,921 ------------------------------------------------------------------------------------------------------------------------------
SA-16 SEPARATE ACCOUNT VL I -- HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- For the Year Ended New New OTC & Utilities Growth Vista Voyager September 30, 2000 Opportunities Value Emerging and Income Sub-Account Sub-Account Sub-Account Sub-Account Growth Sub-Account Sub-Account ------------------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income $ -- $ 17,148 $ -- $ 93,886 $ -- $ 11,639 ................................................................................................................. Capital gains income 1,732,437 60,728 60,050 165,739 24,883 4,938,560 ................................................................................................................. Net realized (loss) gain on security transactions (14,293) (138,999) (99,530) 5,887 (1,450) (51,831) ................................................................................................................. Net unrealized (depreciation) appreciation of investments during the period (1,177,155) 100,934 (1,497,426) 176,229 410,585 (6,091,215) ................................................................................................................. Net increase (decrease) in net assets resulting from operations 540,989 39,811 (1,536,906) 441,741 434,018 (1,192,847) ................................................................................................................. UNIT TRANSACTIONS: Purchases 3,792,726 188,756 1,026,007 496,134 621,488 7,246,189 ................................................................................................................. Net transfers 8,633,141 901,566 6,979,577 576,784 2,645,263 9,229,658 ................................................................................................................. Surrenders for benefit payments and fees (865,620) (67,824) (326,052) (156,142) (32,261) (887,710) ................................................................................................................. Net loan activity (226,966) 23,595 (141,670) (29,619) (15,809) (344,634) ................................................................................................................. Cost of insurance (1,088,418) (80,261) (382,536) (131,793) (174,297) (1,831,954) ................................................................................................................. Net increase in net assets resulting from unit transactions 10,244,863 965,832 7,155,326 755,364 3,044,384 13,411,549 ................................................................................................................. Total increase in net assets 10,785,852 1,005,643 5,618,420 1,197,105 3,478,402 12,218,702 ................................................................................................................. NET ASSETS: Beginning of period 18,767,235 818,299 2,184,069 2,394,951 1,211,489 33,471,977 ------------------------------------------------------------------------------------------------------------------ END OF PERIOD $29,553,087 $1,823,942 $7,802,489 $3,592,056 $4,689,891 $45,690,679 ------------------------------------------------------------------------------------------------------------------
SA-17 [THIS PAGE IS INTENTIONALLY LEFT BLANK] HARTFORD LIFE AND ANNUITY INSURANCE COMPANY BALANCE SHEETS (STATUTORY BASIS) (IN THOUSANDS) (UNAUDITED) --------------------------------------------------------
SEPTEMBER 30, DECEMBER 31, ~~-----------------------------------------------------------------------------------~~ 2000 1999 ----------------------------------------------------------------------------------- (UNAUDITED) ASSETS Bonds $ 1,226,915 $ 1,465,815 Common stocks 38,701 42,430 Mortgage loans 34,380 63,784 Policy loans 75,857 59,429 Cash and short-term investments 213,302 267,579 ----------------------------------------------------------------------------------- Other invested assets 18,836 2,892 ----------------------------------------------------------------------------------- Total cash and invested assets 1,607,991 1,901,929 Investment income due and accrued 20,344 21,069 Other assets 41,486 39,576 Separate account assets 47,812,204 44,865,042 ----------------------------------------------------------------------------------- TOTAL ASSETS $49,482,025 $46,827,616 ----------------------------------------------------------------------------------- LIABILITIES Aggregate reserves for future benefits $ 615,263 $ 591,621 Policy and contract claim liabilities 11,835 7,677 Liability for premium and other deposit funds 1,583,921 1,969,262 Asset valuation reserve 3,647 4,935 Payable to affiliates 22,829 14,084 Accrued expense allowances and other amounts due from separate account (1,392,483) (1,377,927) Remittances and items not allocated 135,641 111,582 Other liabilities 152,799 118,464 Separate account liabilities 47,812,204 44,865,042 ----------------------------------------------------------------------------------- TOTAL LIABILITIES 48,945,656 46,304,740 ----------------------------------------------------------------------------------- CAPITAL AND SURPLUS Common stock 2,500 2,500 Gross paid-in and contributed surplus 226,043 226,043 Unassigned funds 307,826 294,333 ----------------------------------------------------------------------------------- TOTAL CAPITAL AND SURPLUS 536,369 522,876 ----------------------------------------------------------------------------------- TOTAL LIABILITIES, CAPITAL AND SURPLUS $49,482,025 $46,827,616 -----------------------------------------------------------------------------------
The accompanying notes are an integral part of these statutory basis financial statements. F-1 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF OPERATIONS (STATUTORY BASIS) (IN THOUSANDS) (UNAUDITED) --------------------------------------------------------
NINE MONTHS ENDED SEPTEMBER 30, ~~----------------------------------------------------------------------------~~ 2000 1999 ---------------------------------------------------------------------------- REVENUES Premiums and annuity considerations $ 564,487 $ 407,330 Annuity and other fund deposits 3,213,811 2,745,707 Net investment income 82,766 92,321 Commissions and expense allowances on reinsurance ceded 96,524 243,448 Reserve adjustment on reinsurance ceded 1,022,716 702,323 Fee income 618,388 455,917 Other revenues 3,847 7,887 ---------------------------------------------------------------------------- TOTAL REVENUES 5,602,539 4,654,933 ---------------------------------------------------------------------------- BENEFITS AND EXPENSES Death and annuity benefits 42,004 34,403 Disability and other benefits 4,228 4,583 Surrenders and other fund withdrawals 2,654,640 858,280 Commissions 363,369 353,077 Increase (Decrease) in aggregate reserves for future benefits 23,431 (650) (Decrease) Increase in liability for premium and other deposit funds (384,393) 2,232 General insurance expenses 182,679 115,771 Net transfers to separate accounts 2,597,386 3,231,911 Other expenses 22,881 16,734 ---------------------------------------------------------------------------- TOTAL BENEFITS AND EXPENSES 5,506,225 4,616,341 ---------------------------------------------------------------------------- NET GAIN FROM OPERATIONS Before federal income tax expense 96,314 38,592 Federal income tax expense 71,591 13,144 ---------------------------------------------------------------------------- NET GAIN FROM OPERATIONS 24,723 25,448 Net realized capital losses, after tax (514) (36,258) ---------------------------------------------------------------------------- NET INCOME (LOSS) $ 24,209 $ (10,810) ----------------------------------------------------------------------------
The accompanying notes are an integral part of these statutory basis financial statements. F-2 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS (STATUTORY BASIS) (IN THOUSANDS) (UNAUDITED) --------------------------------------------------------
NINE MONTHS ENDED SEPTEMBER 30, ~~----------------------------------------------------------------------------~~ 2000 1999 ---------------------------------------------------------------------------- COMMON STOCK Beginning and end of year $ 2,500 $ 2,500 ---------------------------------------------------------------------------- GROSS PAID-IN AND CONTRIBUTED SURPLUS Beginning and end of year $226,043 $226,043 ---------------------------------------------------------------------------- UNASSIGNED FUNDS Balance, beginning of year $294,333 $247,969 Net income (loss) 24,209 (10,810) Change in net unrealized capital gains (losses) on common stocks and other invested assets (3,702) 1,489 Change in asset valuation reserve 1,288 18,079 Change in non-admitted assets (3,126) 2,773 Credit on reinsurance ceded (5,176) (2,716) ---------------------------------------------------------------------------- Balance, end of year $307,826 $256,784 ---------------------------------------------------------------------------- CAPITAL AND SURPLUS End of year $536,369 $485,327 ----------------------------------------------------------------------------
The accompanying notes are an integral part of these statutory basis financial statements. F-3 HARTFORD LIFE AND ANNUITY INSURANCE COMPANY STATEMENTS OF CASH FLOWS (STATUTORY BASIS) (IN THOUSANDS) (UNAUDITED) --------------------------------------------------------
NINE MONTHS ENDED SEPTEMBER 30, ~~----------------------------------------------------------------------------~~ 2000 1999 ---------------------------------------------------------------------------- OPERATING ACTIVITIES Premiums and annuity considerations $3,776,739 $3,152,996 Investment income 83,130 93,174 Fee income 618,388 455,917 Other income 1,114,139 949,553 ---------------------------------------------------------------------------- Total income 5,592,396 4,651,640 ---------------------------------------------------------------------------- Benefits paid 2,697,533 896,755 Federal income taxes (recoveries) payments (3,299) 24,000 Net transfers to separate accounts 2,597,386 3,231,911 Other expenses 585,737 552,191 ---------------------------------------------------------------------------- Total benefits and expenses 5,877,357 4,704,857 ---------------------------------------------------------------------------- NET CASH USED BY OPERATING ACTIVITIES (284,961) (53,217) ---------------------------------------------------------------------------- INVESTING ACTIVITIES PROCEEDS FROM INVESTMENTS SOLD Bonds 508,750 634,564 Common stocks 614 754 Mortgage loans 33,312 30,292 Other -- 1,351 ---------------------------------------------------------------------------- NET INVESTMENT PROCEEDS 542,676 666,961 ---------------------------------------------------------------------------- COST OF INVESTMENTS ACQUIRED Bonds 274,569 727,958 Common stocks 468 166 Mortgage loans 3,681 56,013 Other 32,356 39,099 ---------------------------------------------------------------------------- TOTAL INVESTMENTS ACQUIRED 311,074 823,236 ---------------------------------------------------------------------------- NET CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES 231,602 (156,275) ---------------------------------------------------------------------------- FINANCING AND MISCELLANEOUS ACTIVITIES Net other cash used (918) (24,952) ---------------------------------------------------------------------------- NET CASH USED FOR FINANCING AND MISCELLANEOUS ACTIVITIES (918) (24,952) ---------------------------------------------------------------------------- Net change in cash and short-term investments (54,277) (234,444) Cash and short-term investments, beginning of period 267,579 469,955 ---------------------------------------------------------------------------- CASH AND SHORT-TERM INVESTMENTS, END OF PERIOD $ 213,302 $ 235,511 ----------------------------------------------------------------------------
The accompanying notes are an integral part of these statutory basis financial statements. F-4 NOTES TO FINANCIAL STATEMENTS (STATUTORY BASIS) (DOLLAR AMOUNTS IN MILLIONS UNLESS OTHERWISE STATED) (Unaudited) -------------------------------------------------------------------------------- 1. BASIS OF PRESENTATION: The accompanying unaudited financial statements of Hartford Life and Annuity Insurance Company (the Company) have been prepared in conformity with statutory accounting practices prescribed by the National Association of Insurance Commissioners and the Connecticut Department of Insurance. Certain information and note disclosures which are normally included in financial statements prepared in accordance with statutory accounting practices have been condensed or omitted, although the Company believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, these statements include all adjustments which were normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the periods presented in accordance with statutory accounting practices. For a description of significant accounting policies, see Note 1 of Notes to Financial Statements in Hartford Life and Annuity Insurance Company's 1999 statutory basis financial statements. Certain reclassifications have been made to prior year financial information to conform to the current year classification of transactions and accounts. 2. INVESTMENTS: In October 1998, the Company became aware of allegations of improper activities at Commercial Financial Services Inc. (CFS), a securitizer and servicer of asset backed securities. On December 11, 1998, CFS filed for protection under Chapter 11 of the Bankruptcy Code and, in June 1999, CFS ceased operations. In August 1999, the Company sold all of its CFS holdings recognizing a $36, after tax, realized capital loss. F-5