N-Q 1 c39956_n-q.txt ----------------------------- OMB APPROVAL ----------------------------- OMB Number: 3235-0578 Expires: May 31, 2007 Estimated average burden hours per response: 21.09 ----------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-01539 811-02571 811-03409 Travelers Growth and Income Stock Account For Variable Annuities Travelers Quality Bond Account For Variable Annuities Travelers Money Market Account For Variable Annuities One Cityplace, Hartford, CT 06103 Marie Swift Metropolitan Life Insurance Company 501 Boylston Street Boston, MA 02116 (617) 578-2857 Date of fiscal year end: December 31 Date of reporting period: September 30, 2005 ITEM 1. Schedule of Investments. The Quarterly Schedule of Investments is filed herewith. THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) SEPTEMBER 30, 2005 NO. OF FAIR SHARES VALUE ------------ ------------- COMMON STOCKS (98.6%) AEROSPACE (1.0%) Boeing Co. 7,258 $ 1,852,181 General Dynamics Corp. 24,458 2,923,954 ----------- 4,776,135 ----------- AUTOMOTIVE (0.9%) Ford Motor Co. 46,363 457,139 Harley-Davidson 13,348 646,577 Oshkosh Truck 24,934 1,076,151 PACCAR Inc. 32,842 2,229,643 ----------- 4,409,510 ----------- BANKING (7.7%) Bank of America Corp. 217,845 9,171,275 Capital One Financial Corp. 39,783 3,163,544 Comerica, Inc. 29,659 1,746,915 JP Morgan Chase & Co. 208,409 7,071,317 KeyCorp 20,039 646,258 Marshall & Ilsley Corp. 17,134 745,500 MBNA Corp. 18,974 467,519 National City Corp. 62,124 2,077,427 Providian Financial Corp. (A) 58,360 1,031,805 U.S. Bancorp 64,725 1,817,478 Wachovia Corp. 101,223 4,817,203 Washington Mutual, Inc. 12,447 488,171 Wells Fargo & Co. 77,391 4,532,791 ----------- 37,777,203 ----------- BEVERAGE (2.3%) Coca-Cola Co. 76,759 3,315,221 Coca-Cola Enterprises Inc. 69,137 1,348,172 Constellation Brands Inc. 36,508 2,248,893 PepsiCo, Inc. 74,247 4,210,547 ----------- 11,122,833 ----------- BIOTECHNOLOGY (0.8%) Genetech Inc. (A) 18,811 1,584,074 Gilead Sciences, Inc. (A) 47,504 2,316,295 ----------- 3,900,369 ----------- BROKERAGE (3.6%) Bear Stearns Companies 33,815 3,711,196 Franklin Resources, Inc. 13,361 1,121,790 Goldman Sachs Group Inc. 31,891 3,877,308 Lehman Brothers Holdings Inc. 28,138 3,277,514 Merrill Lynch & Co. 44,535 2,732,222 Morgan Stanley 56,000 3,020,640 ----------- 17,740,670 ----------- BUILDING MATERIALS (0.1%) Masco Corp. 18,493 567,365 ----------- CAPITAL GOODS (0.8%) Danaher Corp. 32,674 1,758,841 Deere & Co. 25,302 1,548,482 Eaton Corp. 9,256 588,219 ----------- 3,895,542 ----------- CHEMICALS (0.8%) Dow Chemical 52,840 2,201,843 E.I. du Pont de Nemours & Co. 19,717 772,315 Monsanto Co. 11,686 733,297 ----------- 3,707,455 ----------- CONGLOMERATES (5.0%) 3M Co. 24,209 1,775,972 General Electric Co. 467,008 15,724,159 Honeywell International, Inc. 38,200 1,432,500 Parker-Hannifin 5,427 349,010 Tyco International Ltd. 95,312 2,654,439 United Technologies Corp. 45,962 2,382,670 ----------- 24,318,750 ----------- CONSUMER (3.3%) ACCO Brands Corp. (A) 6,036 170,336 Ball Corp. 20,579 756,072 Black & Decker Corp. 12,179 999,774 Colgate-Palmolive Co. 15,336 809,587 Energizer Holdings, Inc. (A) 12,162 689,585 Fortune Brands 25,685 2,088,961 Gillette Co. 22,437 1,305,833 Molson Coors Brewing Co. 16,134 1,032,737 NIKE, Inc. (Class B) 5,734 468,353 Procter & Gamble Co. 112,982 6,717,910 Sealed Air Corp. (A) 25,501 1,210,277 ----------- 16,249,425 ----------- DEFENSE (0.8%) Lockheed Martin Corp. 28,336 1,729,629 Northrop Grumman Corp. 36,874 2,004,102 ----------- 3,733,731 ----------- ELECTRIC UTILITIES (1.6%) American Electric Power 60,355 2,396,094 Edison International 44,962 2,125,803 FirstEnergy Corp. 46,988 2,449,015 Public Service Enterprise 12,828 825,610 Group ----------- 7,796,522 ----------- ENTERTAINMENT (0.4%) Viacom, Inc. (Class B) 57,885 1,910,784 ----------- 1 THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED SEPTEMBER 30, 2005 NO. OF FAIR SHARES VALUE ------------ ------------- FINANCE (2.1%) American Express 68,087 $ 3,910,917 CIT Group Holdings, Inc. 39,646 1,791,206 Countrywide Financial 50,768 1,674,329 E*Trade Financial Corp. (A) 87,610 1,541,936 Principal Financial Group 28,221 1,336,829 ----------- 10,255,217 ----------- FOOD (1.9%) Archer-Daniels Midland Co. 110,826 2,732,969 Darden Restaurants, Inc. 36,042 1,094,596 Hormel Foods Corp. 16,069 530,116 Kellogg Co. 9,471 436,897 McDonald's Corp. 31,525 1,055,772 Sara Lee Corp. 35,337 669,636 Smithfield Foods (A) 69,649 2,067,182 Yum! Brands 12,545 607,303 ----------- 9,194,471 ----------- HEALTHCARE (2.8%) Aetna Inc. 23,790 2,049,271 Caremark Rx, Inc. (A) 28,868 1,441,379 Humana, Inc. (A) 46,491 2,225,989 Medco Health Solutions (A) 12,869 705,607 UnitedHealth Group, Inc. 99,444 5,588,753 Wellpoint, Inc. (A) 25,398 1,925,676 ----------- 13,936,675 ----------- HOME CONSTRUCTION (0.5%) K.B. HOME 13,654 999,473 Pulte Homes, Inc. 32,682 1,402,711 ----------- 2,402,184 ----------- INDEPENDENT ENERGY (1.2%) Anadarko Petroleum Corp. 13,754 1,316,946 Burlington Resources 39,933 3,247,352 Devon Energy Corp. 20,226 1,388,313 ----------- 5,952,611 ----------- INSURANCE (5.6%) ACE Limited 13,472 634,127 AFLAC Inc. 24,399 1,105,275 Allstate Corp. 30,920 1,709,567 Ambac Financial Group 26,313 1,896,115 American International 123,846 7,673,498 Group Aon Corp. 13,909 446,201 Chubb Corp. 29,384 2,631,337 CIGNA Corp. 17,547 2,068,089 First Horizon National 186 6,761 Hartford Financial Services 9,727 750,633 Group, Inc. INSURANCE (CONTINUED) Jefferson-Pilot Corp. 6,647 $ 340,127 Lincoln National Corp. 8,875 461,678 Marsh & McLennan Cos., 23,789 722,948 Inc. MGIC Investment Corp. 16,896 1,084,723 Progressive Corp. 25,934 2,717,105 Prudential Financial, Inc. 44,810 3,027,364 ----------- 27,275,548 ----------- INTEGRATED ENERGY (6.2%) Chevron Corp. 98,703 6,389,045 ConocoPhillips 63,788 4,459,419 Exxon Mobil Corp. 279,822 17,779,890 Marathon Oil 29,648 2,043,637 ----------- 30,671,991 ----------- LODGING (0.5%) Marriott International, 34,251 2,157,813 Inc. Starwood Hotels & Resorts 8,064 461,019 ----------- 2,618,832 ----------- MACHINERY (0.4%) Ingersoll-Rand Co. (Class A) 55,598 2,125,512 ----------- MEDIA NON-CABLE (0.3%) News Corp. Limited 113,833 1,774,656 ----------- MEDICAL SUPPLIES (2.0%) Abbott Laboratories 50,066 2,122,798 Becton, Dickinson and 11,209 587,688 Company Boston Scientific (A) 37,973 887,429 Cardinal Health 7,728 490,264 Herman Miller Inc. 31,809 963,813 Hospira, Inc. (A) 4,008 164,208 Medtronic, Inc. 54,538 2,924,328 Zimmer Holdings, Inc. (A) 23,544 1,621,946 ----------- 9,762,474 ----------- METALS (1.3%) Allegheny Technologies, 47,933 1,484,964 Inc. Newmont Mining Corp. 18,697 881,938 Nucor Corp. 30,127 1,777,192 Phelp's Dodge Corp. 15,837 2,057,701 ----------- 6,201,795 ----------- MULTIMEDIA (2.7%) Brown-Forman Corp. (Class 11,818 703,644 B) Comcast Corp. (Class A) (A) 96,152 2,824,946 Gannett Co., Inc. 21,483 1,478,675 Mcgraw-Hill Companies, Inc. 16,263 781,275 Time Warner Inc. 276,749 5,011,924 Walt Disney Co. 106,372 2,566,756 ----------- 13,367,220 ----------- 2 THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED SEPTEMBER 30, 2005 NO. OF FAIR SHARES VALUE ------------ ------------- OIL COMPANIES (2.6%) Baker Hughes Inc. 22,355 $ 1,334,146 Halliburton Co. 18,874 1,293,247 Occidental Petroleum Corp. 34,303 2,930,505 Schlumberger Ltd. 31,058 2,620,674 Sunoco Inc. 14,818 1,158,768 Transocean, Inc. (A) 20,423 1,252,134 Valero Energy Corp. 17,544 1,983,525 ----------- 12,572,999 ----------- PAPER (0.7%) Georgia-Pacific Corp. 16,897 575,512 International Paper 22,754 678,069 Kimberly Clark Corp. 22,967 1,367,226 Weyerhaeuser Co. 9,523 654,706 ----------- 3,275,513 ----------- PHARMACEUTICALS (7.2%) AmerisourceBergen Corp. 16,014 1,237,882 Amgen, Inc. (A) 59,304 4,724,750 Biogen Idec Inc. (A) 29,934 1,181,794 Bristol-Myers Squibb 86,001 2,069,184 Eli Lilly & Co. 40,675 2,176,926 IVAX Corp. (A) 46,376 1,222,471 Johnson & Johnson 132,817 8,404,660 Merck & Co., Inc. 98,412 2,677,791 Pfizer Inc. 332,612 8,305,322 Schering-Plough Corp. 65,364 1,375,912 Wyeth 42,310 1,957,684 ----------- 35,334,376 ----------- RETAIL (6.7%) GameStop Corp. (Class A) (A) 14,716 417,787 Abercrombie & Fitch Co. 16,577 826,363 American Eagle Outfitters 25,683 604,321 Autozone, Inc. (A) 12,484 1,039,293 Best Buy Co. Inc. 24,978 1,087,292 Borders Group, Inc. 44,240 980,801 Costco Wholesale Corp. 20,855 898,642 CVS Corp. 62,052 1,800,129 Federated Department 11,956 799,498 Stores, Inc. Home Depot, Inc. 86,155 3,285,952 Jones Apparel Group, Inc. 5,054 144,039 Kohl's Corp. (A) 31,967 1,604,104 Lowe's Cos. 44,208 2,846,995 Ltd Brands 44,761 914,467 Nordstrom, Inc. 44,276 1,519,552 Office Depot, Inc. (A) 13,681 406,326 Staples Inc. 34,030 725,509 Supervalu, Inc. 36,506 1,136,067 Target Corp. 55,426 2,878,272 Walgreen Co. 53,026 2,303,980 Wal-Mart Stores, Inc. 146,046 6,399,736 ----------- 32,619,125 ----------- SERVICES (1.0%) Cendant Corp. 49,788 1,027,624 eBay Inc. (A) 51,462 2,120,234 Yahoo! Inc. (A) 59,689 2,019,876 ----------- 5,167,734 ----------- TECHNOLOGY (14.4%) Advanced Micro Devices (A) 39,497 995,324 Analog Devices, Inc. 17,304 642,671 Apple Computer (A) 49,254 2,640,507 Autodesk, Inc. 10,017 465,190 Cisco Systems, Inc. (A) 304,197 5,454,252 Comverse Technology Inc. 78,946 2,073,911 Corning Inc. (A) 111,647 2,158,137 Dell Inc. (A) 112,593 3,850,681 EMC Corp. (A) 111,492 1,442,707 Fiserv Inc. (A) 11,777 540,211 Hewlett Packard Co. 137,035 4,001,422 Intel Corp. 290,880 7,170,192 International Business 80,687 6,472,711 Machine Jabil Circuit (A) 44,049 1,361,995 KLA-Tencor Corp. 9,143 445,813 Lexmark International (Class 5,825 355,616 A) (A) Maxim Intergrated Products 14,330 611,175 Micron Technology, Inc. (A) 96,377 1,281,814 Microsoft Corp. 426,737 10,979,943 Motorola, Inc. 105,853 2,338,293 Oracle Corp. (A) 224,611 2,782,930 Scientific-Atlanta, Inc. 47,811 1,793,391 Sun Microsystems, Inc. (A) 158,542 621,485 Sybase, Inc. (A) 49,877 1,168,119 Symantec Corp. (A) 58,493 1,325,451 Texas Instruments Inc. 90,528 3,068,899 Thomas & Betts Corp. (A) 41,654 1,433,314 Waters Corp. (A) 27,164 1,130,022 Xerox Corp. (A) 148,248 2,023,585 ----------- 70,629,761 ----------- TELECOMMUNICATIONS (3.9%) AT&T Corp. 92,088 1,823,342 BellSouth Corp. 71,766 1,887,446 CenturyTel, Inc. 52,301 1,829,489 Circuit City Stores, Inc. 63,005 1,081,166 QUALCOMM, Inc. 66,861 2,992,030 SBC Communications Inc. 184,615 4,425,222 Sprint Corp. 39,111 930,060 Verizon Communications 122,389 4,000,896 ----------- 18,969,651 ----------- 3 THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED SEPTEMBER 30, 2005 NO. OF FAIR SHARES VALUE ------------ ------------- TOBACCO (1.5%) Altria Group 92,199 $ 6,795,988 ------------ TRANSPORTATION SERVICES (1.5%) Burlington Northern Santa 37,346 2,233,291 Fe CSX Corp. 34,293 1,593,939 United Parcel Service 51,324 3,548,028 (Class B) ------------ 7,375,258 ------------ UNITED STATES AGENCY SECURITIES (0.9%) Fannie Mae 51,346 2,301,328 Freddie Mac 33,629 1,898,693 ------------ 4,200,021 ------------ UTILITIES (1.7%) AES Corp. 122,460 2,012,018 Exelon Corp. 54,443 2,909,434 National Fuel Gas Co. 11,814 404,039 The Southern Co. 26,402 944,136 TXU Corp. 17,372 1,960,951 ------------ 8,230,578 ------------ TOTAL COMMON STOCKS (COST $419,224,367) 482,616,484 ------------ PRINCIPAL AMOUNT ------------ SHORT-TERM INVESTMENTS (1.5%) COMMERCIAL PAPER (1.5%) Morgan Stanley 3.82% due October 4, 2005 $2,065,000 2,064,781 Morgan Stanley 3.87% due October 5, 2005 2,241,000 2,240,525 UBS AG 3.92% due October 3, 2005 2,800,000 2,800,000 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $7,103,804) 7,105,306 ------------ TOTAL INVESTMENTS (100.1%) (COST $426,328,171) (B) 489,721,790 ------------ OTHER ASSETS AND LIABILITIES (-0.1%) (337,782) ------------ TOTAL NET ASSETS (100.0%) $489,384,008 ============ NOTES (A) Non-income Producing Security. (B) At September 30, 2005, net unrealized appreciation for all securities was $63,393,619. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of fair value over cost of $104,585,718 and aggregate gross unrealized depreciation for all securities in which there was an excess of cost over fair value of $41,192,099. See Notes to Statement of Investments 4 THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT FOR VARIABLE ANNUITIES NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) SEPTEMBER 30, 2005 1. SIGNIFICANT ACCOUNTING POLICIES The Travelers Growth and Income Stock Account for Variable Annuities ("Account GIS") is a separate account of The Travelers Insurance Company ("The Company"), an indirect wholly owned subsidiary of MetLife, Inc., and is available for funding Universal Annuity, Universal Select Annuity, and Universal Annuity Advantage contracts issued by The Company. Account GIS is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The following is a summary of significant accounting policies consistently followed by Account GIS. SECURITY VALUATION. Investments in securities traded on a national securities exchange are valued at the 4:00 p.m. Eastern Standard Time price of such exchanges; securities traded on the over-the-counter market and listed securities with no reported sales are valued at the mean between the last reported bid and asked prices or on the basis of quotations received from a reputable broker or other recognized source. Short-term investments are reported at fair value based on quoted market prices. Short-term investments, for which there is no reliable quoted market price, are recorded at amortized cost which approximates fair value. SECURITY TRANSACTIONS. Security transactions are accounted for on the trade date. FUTURES CONTRACTS. Account GIS may use stock index futures contracts as a substitute for the purchase or sale of individual securities. When Account GIS enters into a futures contract, it agrees to buy or sell a specified index of stocks at a future time for a fixed price, unless the contract is closed prior to expiration. Account GIS is obligated to deposit with a broker an "initial margin" equivalent to a percentage of the face, or notional value of the contract. It is Account GIS's practice to hold cash and cash equivalents in an amount at least equal to the notional value of outstanding purchased futures contracts, less the initial margin. Cash and cash equivalents include cash on hand, securities segregated under federal and brokerage regulations, and short-term highly liquid investments with maturities generally three months or less when purchased. Generally, futures contracts are closed prior to expiration. Futures contracts purchased by Account GIS are priced and settled daily; accordingly, changes in daily prices are recorded as realized gains or losses and no asset is recorded in the Statement of Investments. Therefore, when Account GIS holds open futures contracts, it assumes a market risk generally equivalent to the underlying market risk of change in the value of the specified indexes associated with the futures contract. Account GIS held no futures contracts at September 30, 2005. OPTIONS. Account GIS may purchase index or individual equity put or call options, thereby obtaining the right to sell or buy a fixed number of shares of the underlying asset at the stated price on or before the stated expiration date. Account GIS may sell the options before expiration. Options held by Account GIS are listed on either national securities exchanges or on over-the-counter markets and are short-term contracts with a duration of less than nine months. The market value of the options will be based on the 4:00 p.m. Eastern Standard Time price of the respective exchange, or in the absence of such price, the latest bid quotation. There were no put or call options in Account GIS at September 30, 2005. REPURCHASE AGREEMENTS. When Account GIS enters into a repurchase agreement (a purchase of securities whereby the seller agrees to repurchase the securities at a mutually agreed upon date and price), the repurchase price of the securities will generally equal the amount paid by Account GIS plus a negotiated interest amount. The seller under the repurchase agreement will be required to provide to Account GIS securities (collateral) whose market value, including accrued interest, will be at least equal to 102% of the repurchase price. Account GIS monitors the value of collateral on a daily basis. Repurchase agreements will be limited to transactions with national banks and reporting broker dealers believed to present minimal credit risks. Account GIS's custodian will take actual or constructive receipt of all securities underlying repurchase agreements until such agreements expire. There were no repurchase agreements in Account GIS at September 30, 2005. 5 THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT FOR VARIABLE ANNUITIES NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED SEPTEMBER 30, 2005 2. INVESTMENTS The aggregate costs of purchases and proceeds from sales of investments (other than short-term securities), were $89,684,005 and $132,336,062 respectively; the costs of purchases and proceeds from sales of direct and indirect U.S. government securities were $1,142,607 and $2,550,000, respectively, for the nine months ended September 30, 2005. Realized gains and losses from investment security transactions are reported on an identified cost basis. At September 30, 2005, Account GIS held no open futures contracts. Net realized gains (losses) resulting from futures contracts were ($158,172) for the nine months ended September 30, 2005. 6 THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) SEPTEMBER 30, 2005
PRINCIPAL FAIR AMOUNT VALUE ------------- ------------- BONDS (66.4%) AIRLINES (0.3%) Delta Air Lines, Inc., 9.25% Debentures, 2007 (A).......................................... $ 439,660 $ 241,813 ---------- ASSET BACKED SECURITIES (2.1%) CA Infrastructure, 6.42% Debentures, 2008.................................................. 325,728 329,740 Chase Funding Mortgage Loan Asset Backed Security Certificate, 5.83% Debentures, 2032...... 500,000 507,387 Discover Card Mt, 6.05% Debentures, 2008................................................... 1,100,000 1,107,932 Toyota Auto Recovery Owner Trust, 2.65% Debentures, 2006................................... 15,674 15,675 ---------- 1,960,734 ---------- AUTOMOTIVE (0.9%) Daimler Chrysler NA Holdings, 7.30% Debentures, 2012....................................... 700,000 761,147 Ford Motor Co., 7.45% Debentures, 2031..................................................... 100,000 78,500 ---------- 839,647 ---------- BANKING (7.3%) ABN AMRO Holdings ADS, 3.84% Debentures, 2007.............................................. 920,000 921,428 Bank of America Corp., 5.38% Debentures, 2014.............................................. 600,000 619,139 Capital One Bank, 5.00% Debentures, 2009................................................... 620,000 623,401 Capital One Bank, 5.50% Debentures, 2015................................................... 200,000 201,547 HSBC Bank USA, 5.88% Debentures, 2034...................................................... 400,000 411,885 Huntington National Bank, 4.65% Debentures, 2009........................................... 400,000 398,964 JP Morgan Chase & Co., 5.25% Debentures, 2015.............................................. 200,000 201,626 Royal Bank of Scotland Capital Trust, 4.71% Debentures, Perpetual.......................... 300,000 289,894 Royal Bank of Scotland PLC, 5.05% Debentures, 2015......................................... 400,000 403,543 U.S. Bancorp NA MN, 2.87% Debentures, 2007................................................. 1,000,000 979,037 U.S. Bancorp NA MN, 4.95% Debentures, 2014................................................. 200,000 200,574 Wachovia Corp. NA, 4.09% Debentures, 2014.................................................. 700,000 706,903 Wachovia Corp. NA, 4.80% Debentures, 2014.................................................. 300,000 295,100 Washington Mutual Bank, 5.13% Debentures, 2015............................................. 500,000 495,852 ---------- 6,748,893 ---------- BEVERAGE (1.2%) Pepsi Bottling Group, 4.63% Debentures, 2012............................................... 400,000 396,011 PepsiAmericas, Inc., 4.88% Debentures, 2015................................................ 700,000 693,173 ---------- 1,089,184 ---------- BROKERAGE (3.2%) Goldman Sachs Group Inc., 5.25% Debentures, 2013........................................... 1,100,000 1,111,734 Lehman Brothers Holdings Inc., 4.80% Debentures, 2014...................................... 700,000 688,857 Merrill Lynch & Co. Inc., 4.13% Debentures, 2009........................................... 400,000 391,116 Merrill Lynch & Co. Inc., 4.25% Debentures, 2010........................................... 400,000 391,423 Merrill Lynch & Co. Inc., 5.00% Debentures, 2015........................................... 400,000 398,563 ---------- 2,981,693 ----------
7 THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED SEPTEMBER 30, 2005
PRINCIPAL FAIR AMOUNT VALUE ------------- ------------- BUILDING MATERIALS (0.4%) D.R. Horton, 5.25% Debentures, 2015........................................................ $ 400,000 $ 376,418 ----------- COLLATERALIZED MORTGAGE OBLIGATIONS (9.5%) Bank of America Commercial Mortgage Inc., 4.87% Debentures, 2042........................... 1,400,000 1,378,056 Commercial Mortgage Pass Through Certificates, 5.17% Debentures, 2044...................... 750,000 754,153 Credit Suisse First Boston Commercial Mortgage Corp., 4.89% Debentures, 2037............... 220,000 216,636 Credit Suisse First Boston Corp., 3.88% Debentures, 2009................................... 500,000 487,842 Credit Suisse First Boston Corp., 6.13% Debentures, 2011................................... 300,000 319,126 JP Morgan Chase & Co. Commercial Mortgage, 4.78% Debentures, 2042.......................... 3,000,000 2,936,274 JP Morgan Chase & Co. Commercial Mortgage, 4.92% Debentures, 2042.......................... 1,600,000 1,579,390 JP Morgan Chase & Co. Commercial Mortgage, 5.00% Debentures, 2042.......................... 580,000 582,887 JP Morgan Chase & Co. Commercial Mortgage, 5.00% Debentures, 2042.......................... 500,000 495,848 ----------- 8,750,212 ----------- CONGLOMERATES (3.2%) Berskshire Hathaway, Inc., 3.85% Debentures, 2008 (B)...................................... 200,000 200,093 Berskshire Hathaway, Inc., 4.75% Debentures, 2012 (B)...................................... 400,000 396,046 General Electric Co., 5.00% Debentures, 2013............................................... 1,300,000 1,312,801 Tyco International Ltd., 6.13% Debentures, 2008............................................ 1,000,000 1,036,546 ----------- 2,945,486 ----------- DEFENSE (0.8%) Northrop Grumman Corp., 4.08% Debentures, 2006............................................. 600,000 597,045 Northrop Grumman Corp., 7.13% Debentures, 2011............................................. 100,000 110,638 ----------- 707,683 ----------- ELECTRIC UTILITIES (1.4%) Dominion Resources Inc., 5.25% Debentures, 2033............................................ 400,000 398,362 PSEG Energy Holdings, 8.63% Debentures, 2008............................................... 450,000 472,500 TransAlta Corp., 5.75% Debentures, 2013.................................................... 400,000 409,854 ----------- 1,280,716 ----------- FINANCE (6.9%) AIG SunAmerica Global Financials, 5.85% Debentures, 2008 (B)............................... 500,000 514,966 American General Financial Corp., 3.88% Debentures, 2009................................... 900,000 868,691 Caterpillar Financial Services Corp., 4.70% Debentures, 2012............................... 800,000 795,840 Countrywide Financial Corp., 4.50% Debentures, 2010........................................ 400,000 392,066 Countrywide Home Loan, 4.00% Debentures, 2011.............................................. 710,000 675,304 Ford Motor Credit Co., 5.70% Debentures, 2010.............................................. 100,000 90,925 Ford Motor Credit Co., 6.88% Debentures, 2006.............................................. 1,000,000 1,004,172 Glencore Funding LLC, 6.00% Debentures, 2014 (B)........................................... 300,000 284,658 Household Financial Corp., 6.38% Debentures, 2011.......................................... 1,400,000 1,499,380 Rabobank Capital Fund Trust III, 5.25% Debentures, Perpetual (B)........................... 200,000 199,677 ----------- 6,325,679 ----------- FOOD (1.1%) Fred Meyer Inc., 7.45% Debentures, 2008.................................................... 1,000,000 1,054,894 -----------
8 THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED SEPTEMBER 30, 2005
PRINCIPAL FAIR AMOUNT VALUE ------------- ------------- HEALTHCARE (0.5%) Wellpoint, Inc., 6.80% Debentures, 2012.................................................... $ 400,000 $ 441,740 ----------- INDEPENDENT ENERGY (1.1%) Anadarko Financial Co., 6.75% Debentures, 2011............................................. 400,000 435,111 Devon Energy Corp., 6.88% Debentures, 2011................................................. 500,000 550,288 ----------- 985,399 ----------- INSURANCE (1.6%) Chase Issuance Trust, 4.23% Debentures, 2013............................................... 500,000 496,642 GE Global Insurnace, 7.00% Debentures, 2026................................................ 100,000 103,112 Massmutual Global Funding, 2.55% Debentures, 2008 (B)...................................... 900,000 850,720 ----------- 1,450,474 ----------- MACHINERY (0.2%) Cooper Cameron Corp. , 2.65% Debentures, 2007.............................................. 200,000 193,380 ----------- MEDIA CABLE (2.2%) Comcast Cable Communications, 8.50% Debentures, 2027....................................... 500,000 636,177 Cox Communications Inc., 7.13% Debentures, 2012............................................ 800,000 871,434 Liberty Media Corp., 5.37% Debentures, 2006................................................ 484,000 488,148 ----------- 1,995,759 ----------- METALS (0.4%) Phelps Dodge Corp., 8.75% Debentures, 2011................................................. 300,000 351,545 ----------- MULTIMEDIA (2.9%) Clear Channel Communications Inc., 4.40% Debentures, 2011.................................. 200,000 187,624 Time Warner Inc., 6.15% Debentures, 2007................................................... 2,400,000 2,453,873 ----------- 2,641,497 ----------- NATURAL GAS DISTRIBUTION (0.9%) Duke Capital LLC, 4.33% Debentures, 2006................................................... 400,000 398,039 Southern California Gas Co., 4.38% Debentures, 2011........................................ 400,000 394,530 ----------- 792,569 ----------- NATURAL GAS PIPELINE (0.2%) Consolidated Natural Gas Co., 5.00% Debentures, 2014....................................... 200,000 197,488 ----------- PAPER (0.2%) International Paper, 5.30% Debentures, 2015................................................ 200,000 195,556 ----------- PHARMACEUTICALS (1.3%) Wyeth, 5.50% Debentures, 2014.............................................................. 1,200,000 1,231,718 -----------
9 THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED SEPTEMBER 30, 2005
PRINCIPAL FAIR AMOUNT VALUE ------------- ------------- REAL ESTATE (4.1%) Health Retirement Properties, 6.25% Debentures, 2016....................................... $ 300,000 $ 315,527 iStar Financial, 6.00% Debentures, 2010.................................................... 440,000 452,159 Kimco Realty, 3.89% Debentures, 2006....................................................... 100,000 100,124 Nationwide Health Properties Inc., 6.90% Debentures, 2037.................................. 2,100,000 2,252,032 Simon Property Group, Inc., 4.60% Debentures, 2010......................................... 200,000 197,429 Simon Property Group, Inc., 5.10% Debentures, 2015......................................... 200,000 196,408 Avalonbay Communties, Inc., 4.95% Debentures, 2013......................................... 100,000 98,358 Colonial Realty LP, 4.75% Debentures, 2010................................................. 200,000 195,895 ------------ 3,807,932 ------------ SUPERMARKETS (1.0%) Delhaize America, Inc., 9.00% Debentures, 2031............................................. 200,000 231,868 Safeway Inc., 6.5% Debentures, 2011........................................................ 700,000 731,004 ------------ 962,872 ------------ TECHNOLOGY (0.8%) Computer Associates International, 4.75% Debentures, 2009 (B).............................. 800,000 785,624 ------------ TELECOMMUNICATIONS (1.9%) Deutsche Telecomm International Financial, 8.75% Debentures, 2030.......................... 200,000 258,984 SBC Communications, Inc., 6.45% Debentures, 2034........................................... 400,000 424,226 Sprint Capital Corp., 6.13% Debentures, 2008............................................... 720,000 748,192 Telecom Italia S.p.A., 4.00% Debentures, 2010 (B).......................................... 300,000 288,344 ------------ 1,719,746 ------------ TOBACCO (1.0%) Altria Group, 5.63% Debentures, 2008....................................................... 900,000 923,462 ------------ UNITED STATES AGENCY SECURITIES (3.6%) Fannie Mae, 1.75% Debentures, 2006......................................................... 1,300,000 1,277,480 Fannie Mae, 4.00% Debentures, 2007......................................................... 1,400,000 1,393,409 Freddie Mac, 2.90% Debentures, 2019........................................................ 700,000 695,700 ------------ 3,366,589 ------------ UTILITIES (4.2%) Kinder Morgan , 5.13% Debentures, 2014..................................................... 200,000 197,556 Pepco Holdings, 5.5% Debentures, 2007...................................................... 1,600,000 1,620,747 SP Powerassets Ltd., 5.00% Debentures, 2013 (B)............................................ 900,000 909,003 Xcel Energy Inc., 3.40% Debentures, 2008................................................... 1,200,000 1,158,672 ------------ 3,885,978 ------------ TOTAL BONDS (COST $61,458,676)......................................................................... 61,232,380 ------------
10 THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED SEPTEMBER 30, 2005
PRINCIPAL FAIR AMOUNT VALUE ------------- ------------- UNITED STATES GOVERNMENT SECURITIES (23.7%) United States of America Treasury, 2.75% Debentures, 2007.................................. $ 2,400,000 $ 2,340,190 United States of America Treasury, 2.88% Debentures, 2006.................................. 3,000,000 2,957,931 United States of America Treasury, 3.63% Debentures, 2010.................................. 100,000 97,500 United States of America Treasury, 3.88% Debentures, 2010.................................. 100,000 98,582 United States of America Treasury, 4.00% Debentures, 2007.................................. 8,000,000 7,975,320 United States of America Treasury, 4.13% Debentures, 2008.................................. 8,000,000 7,990,632 United States of America Treasury, 4.25% Debentures, 2015.................................. 300,000 298,219 United States of America Treasury, 5.25% Debentures, 2029.................................. 100,000 109,043 ------------ TOTAL UNITED STATES GOVERNMENT SECURITIES (COST $22,028,060).......................................................................... 21,867,417 ------------ SHORT-TERM INVESTMENTS (8.9%) COMMERCIAL PAPER (8.9%) Georgetown Funding Co, LLC 3.70% due October 4, 2005................................................................. 2,300,000 2,299,756 Mica Funding LLC 3.73% due October 11, 2005................................................................ 2,200,000 2,198,128 Paradigm Funding LLC 3.77% due October 13, 2005................................................................ 1,926,000 1,923,951 Tasman Funding, Inc. 3.71% due October 7, 2005................................................................. 1,805,000 1,804,238 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $8,224,582).......................................................................... 8,226,073 ------------ TOTAL INVESTMENTS (99.0%) (COST $91,711,318) (C)..................................................................... 91,325,870 ------------ OTHER ASSETS AND LIABILITIES (1.0%)......................................................... 943,800 ------------ TOTAL NET ASSETS (100.0%)................................................................... $ 92,269,670 ============
11 THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED SEPTEMBER 30, 2005 NOTES (A) Private Placement. (B) Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of September 30, 2005, The Travelers Quality Bond Account for Variable Annuities held 4.8% of its net assets, with a current market value of $4,429,130, in securities restricted as to resale (C) At September 30, 2005, net unrealized depreciation for all securities was $385,448. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of fair value over cost of $779,438 and aggregate gross unrealized depreciation for all securities in which there was an excess of cost over fair value of $1,164,886. See Notes to Statement of Investments 12 THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) SEPTEMBER 30, 2005 1. SIGNIFICANT ACCOUNTING POLICIES The Travelers Quality Bond Account for Variable Annuities ("Account QB") is a separate account of The Travelers Insurance Company ("The Company"), an indirect wholly owned subsidiary of MetLife, Inc., and is available for funding Universal Annuity, Universal Select Annuity, and Universal Annuity Advantage contracts issued by The Company. Account QB is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The following is a summary of significant accounting policies consistently followed by Account QB. SECURITY VALUATION. Investments in securities traded on a national securities exchange are valued at the 4:00 p.m. Eastern Standard Time price of such exchanges; securities traded on the over-the-counter market and listed securities with no reported sales are valued at the mean between the last-reported bid and asked prices or on the basis of quotations received from a reputable broker or other recognized source. When market quotations are not considered to be readily available for long-term corporate bonds and notes, such investments are generally stated at fair value on the basis of valuations furnished by a pricing service. These valuations are determined for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships between securities, which are generally recognized by institutional traders. Securities, including restricted securities, for which pricing services are not readily available, are valued by management at prices which it deems, in good faith, to be fair value. Short-term investments are reported at fair value based on quoted market prices. Short-term investments, for which there is no reliable quoted market price, are recorded at amortized cost, which approximates fair value. SECURITY TRANSACTIONS. Security transactions are accounted for on the trade date. FUTURES CONTRACTS. Account QB may use interest rate futures contracts as a substitute for the purchase or sale of individual securities. When Account QB enters into a futures contract, it agrees to buy or sell specified debt securities at a future time for a fixed price, unless the contract is closed prior to expiration. Account QB is obligated to deposit with a broker an "initial margin" equivalent to a percentage of the face, or notional value of the contract. It is Account QB's practice to hold cash and cash equivalents in an amount at least equal to the notional value of outstanding purchased futures contracts, less the initial margin. Cash and cash equivalents include cash on hand, securities segregated under federal and brokerage regulations, and short-term highly liquid investments with maturities generally three months or less when purchased. Generally, futures contracts are closed prior to expiration. Futures contracts purchased by Account QB are priced and settled daily; accordingly, changes in daily prices are recorded as realized gains or losses and no asset is recorded in the Statement of Investments. Therefore, when Account QB holds open futures contracts, it assumes a market risk generally equivalent to the underlying market risk of change in the value of the debt securities associated with the futures contract. There were no futures contracts in Account QB at September 30, 2005 REPURCHASE AGREEMENTS. When Account QB enters into a repurchase agreement (a purchase of securities whereby the seller agrees to repurchase the securities at a mutually agreed upon date and price), the repurchase price of the securities will generally equal the amount paid by Account QB plus a negotiated interest amount. The seller under the repurchase agreement will be required to provide to Account QB securities (collateral) whose market value, including accrued interest, will be at least equal to 102% of the repurchase price. Account QB monitors the value of collateral on a daily basis. Repurchase agreements will be limited to transactions with national banks and reporting broker dealers believed to present minimal credit risks. Account QB's custodian will take actual or constructive receipt of all securities underlying repurchase agreements until such agreements expire. There were no repurchase agreements in Account QB at September 30, 2005. 13 THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED SEPTEMBER 30, 2005 2. INVESTMENTS The aggregate costs of purchases and proceeds from sales of investments (other than short-term securities) were $19,523,134 and $36,150,799, respectively; the costs of purchases and proceeds from sales of direct and indirect U.S. government securities were $35,341,134 and $25,873,676, respectively, for the nine months ended September 30, 2005. Realized gains and losses from investment security transactions are reported on an identified cost basis. 14 THE TRAVELERS MONEY MARKET ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) SEPTEMBER 30, 2005
PRINCIPAL FAIR AMOUNT VALUE ------------- ------------- SHORT-TERM INVESTMENTS (100.1%) COMMERCIAL PAPER (100.1%) Abbey National North America, 3.84% Due October 5, 2005 .................................... $ 3,200,000 $ 3,199,321 American General Financial Corp., 3.80% Due November 3, 2005 ............................... 3,200,000 3,189,546 Atlantic Asset Securitization, 3.80% Due October 11, 2005 .................................. 3,200,000 3,197,290 Beethoven Funding Corp., 3.74% Due October 6, 2005 ......................................... 3,200,000 3,198,986 Chesham Finance LLC, 3.96% Due October 3, 2005 ............................................. 544,000 544,000 Danske Corp A Disc NT, 3.71% Due October 7, 2005 ........................................... 3,200,000 3,198,656 DPFeur, 3.84% Due November 1, 2005 ......................................................... 3,200,000 3,190,307 Eiffel Funding, 3.72% Due October 7, 2005 .................................................. 3,167,000 3,165,651 Gannett Co Inc., 3.80% Due November 2, 2005 ................................................ 3,200,000 3,189,891 General Electric Capital, 3.77% Due October 3, 2005 ........................................ 3,100,000 3,100,000 Goldman Sachs LP Disc, 3.83% Due November 3, 2005 .......................................... 3,200,000 3,189,546 Hannover Funding Co LLC, 3.81% Due October 5, 2005 ......................................... 3,200,000 3,199,318 HBOS Treasury, 3.80% Due October 28, 2005 .................................................. 3,200,000 3,191,654 HSBC Treasury Services PLC, 3.77% Due November 2, 2005 ..................................... 3,200,000 3,189,891 ING US Funding LLC Disc NT, 3.82% Due November 4, 2005 ..................................... 3,000,000 2,989,956 Morgan Stanley, 3.81% Due October 7, 2005 .................................................. 3,168,000 3,166,660 Norddeutsche Landesbank Giro, 3.80% Due October 28, 2005 ................................... 3,200,000 3,191,590 Societe Generale, 3.76% Due October 3, 2005 ................................................ 3,200,000 3,200,000 St Germain Holdings LTD, 3.78% Due October 4, 2005 ......................................... 3,200,000 3,199,661 Total Financial Elf Cap 4-2 Disc NT, 3.79% Due October 21, 2005 ............................ 3,200,000 3,193,987 Toyota Motor Credit Corp., 3.79% Due November 2, 2005 ...................................... 3,182,000 3,172,028 UBS AG, 3.92% Due October 3, 2005 3,200,000 3,200,000 ----------- TOTAL INVESTMENTS (100.1%) (COST $67,245,092)........................................................................ 67,257,939 ----------- OTHER ASSETS AND LIABILITIES (-0.1%)....................................................... (72,936) ----------- TOTAL NET ASSETS (100.0%).................................................................. $67,185,003 ===========
15 THE TRAVELERS MONEY MARKET ACCOUNT FOR VARIABLE ANNUITIES NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) SEPTEMBER 30, 2005 1. SIGNIFICANT ACCOUNTING POLICIES The Travelers Money Market Account for Variable Annuities ("Account MM") is a separate account of The Travelers Insurance Company ("The Company"), an indirect wholly owned subsidiary of MetLife, Inc., and is available for funding Universal Annuity, Universal Select Annuity, and Universal Annuity Advantage contracts issued by The Company. Account MM is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The following is a summary of significant accounting policies consistently followed by Account MM. SECURITY VALUATION. Investments in securities traded on a national securities exchange are valued at the 4:00 p.m. Eastern Standard Time price of such exchanges; securities traded on the over-the-counter market and listed securities with no reported sales are valued at the mean between the last reported bid and asked prices or on the basis of quotations received from a reputable broker or other recognized source. Short-term investments are reported at fair value based on quoted market prices. Short-term investments, for which there is no reliable quoted market price, are recorded at amortized cost which approximates fair value. SECURITY TRANSACTIONS. Security transactions are accounted for on the trade date. REPURCHASE AGREEMENTS. When Account MM enters into a repurchase agreement (a purchase of securities whereby the seller agrees to repurchase the securities at a mutually agreed upon date and price), the repurchase price of the securities will generally equal the amount paid by Account MM plus a negotiated interest amount. The seller under the repurchase agreement will be required to provide to Account MM securities (collateral) whose market value, including accrued interest, will be at least equal to 102% of the repurchase price. Account MM monitors the value of collateral on a daily basis. Repurchase agreements will be limited to transactions with national banks and reporting broker dealers believed to present minimal credit risks. Account MM's custodian will take actual or constructive receipt of all securities underlying repurchase agreements until such agreements expire. There were no repurchase agreements in Account MM at September 30, 2005. 16 ITEM 2. Controls and Procedures. (a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a - 3 (c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) underthe 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934 as of a date within 90 days of the filing date of this document. (b) There were no changes in the registrant's internal control over financials reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that have materially affected, or are likely to materially affect the registrant's internal control over financial reporting. ITEM 3. Exhibits. Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit 99.CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Travelers Growth and Income Stock Account For Variable Annuities Travelers Quality Bond Account For Variable Annuities Travelers Money Market Account For Variable Annuities By: /s/ Elizabeth M. Forget Elizabeth M. Forget Chairman of the Board Chief Executive Officer Travelers Growth and Income Stock Account For Variable Annuities Travelers Quality Bond Account For Variable Annuities Travelers Money Market Account For Variable Annuities Date: November 29, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Elizabeth M. Forget Elizabeth M. Forget Chairman of the Board Chief Executive Officer Travelers Growth and Income Stock Account For Variable Annuities Travelers Quality Bond Account For Variable Annuities Travelers Money Market Account For Variable Annuities Date: November 29, 2005 By: /s/ Alan C. Leland Jr. Alan C. Leland Jr. Principal Accounting Officer Travelers Growth and Income Stock Account For Variable Annuities Travelers Quality Bond Account For Variable Annuities Travelers Money Market Account For Variable Annuities Date: November 29, 2005