N-Q 1 c42755_nq.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: March 31, 2006 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) MARCH 31, 2006 NO. OF FAIR SHARES VALUE -------- ------------ COMMON STOCK (99.0%) AEROSPACE (1.8%) Boeing Co. 27,091 $ 2,111,202 General Dynamics Corp. 40,816 2,611,408 Raytheon Co. 92,400 4,235,616 ------------ 8,958,226 ------------ AUTOMOTIVE (0.3%) Oshkosh Truck 24,781 1,542,369 ------------ BANKING (7.1%) Bank of America Corp. 92,357 4,205,938 Bank of New York Co., Inc. 15,825 570,333 Capital One Financial Corp. 27,683 2,229,035 Citigroup, Inc. 163,800 7,736,274 Comerica, Inc. 29,477 1,708,782 CreditCorp LTD (A) 24,900 659,352 JP Morgan Chase & Co. 167,541 6,976,407 PNC Financial Services Group 19,041 1,281,650 Suntrust Banks, Inc. 7,270 528,965 U.S. Bancorp 35,929 1,095,834 Wachovia Corp. 47,703 2,673,753 Wells Fargo & Co. 76,917 4,912,689 ------------ 34,579,012 ------------ BEVERAGE (1.3%) Coca-Cola Co. 47,089 1,971,616 PepsiCo, Inc. 73,792 4,264,440 ------------ 6,236,056 ------------ BIOTECHNOLOGY (0.1%) Gilead Sciences, Inc. (A) 9,213 573,233 ------------ BROADCASTING & CABLE TV (0.1%) Viacom Inc. (Class B) (A) 14,365 557,362 ------------ BROKERAGE (5.1%) AllianceBernstein Holding L.P. 37,200 2,464,500 Federated Investors, Inc. (A) 34,500 1,347,225 Franklin Resources, Inc. 13,279 1,251,413 Goldman Sachs Group Inc. 31,696 4,975,004 Lehman Brothers Holdings Inc. (A) 23,266 3,362,635 Merrill Lynch & Co. 44,262 3,486,075 Morgan Stanley 67,157 4,218,803 Raymond James Financial, Inc. 134,100 3,963,996 ------------ 25,069,651 ------------ NO. OF FAIR SHARES VALUE -------- ------------ CHEMICALS (0.7%) Dow Chemical 58,017 $ 2,355,490 E.I. du Pont de Nemours & Co. 18,696 789,158 Monsanto Co. 5,514 467,311 ------------ 3,611,959 ------------ CONGLOMERATES (3.0%) 3M Co. 15,061 1,139,967 General Electric Co. 219,849 7,646,348 Honeywell International, Inc. 37,966 1,623,806 Parker-Hannifin 5,394 434,810 Tyco International Ltd. 40,129 1,078,668 United Technologies Corp. 45,681 2,648,128 ------------ 14,571,727 ------------ CONSUMER (1.3%) Colgate-Palmolive Co. 10,242 584,818 NIKE, Inc. (Class B) 5,699 484,985 Procter & Gamble Co. 66,532 3,833,574 Sealed Air Corp. 25,345 1,466,715 ------------ 6,370,092 ------------ DEFENSE (0.9%) Lockheed Martin Corp. 28,163 2,115,886 Northrop Grumman Corp. 36,648 2,502,692 ------------ 4,618,578 ------------ ELECTRIC UTILITIES (2.0%) American Electric Power 99,186 3,374,308 Edison International 44,687 1,840,211 FirstEnergy Corp. 89,400 4,371,660 ------------ 9,586,179 ------------ FINANCE (0.9%) American Express 25,170 1,322,683 Principal Financial Group (A) 62,448 3,047,462 ------------ 4,370,145 ------------ FOOD (1.3%) Aramark Corp. (A) 12,900 381,066 Darden Restaurants, Inc. (A) 78,921 3,238,129 Hormel Foods Corp. 41,971 1,418,620 McDonald's Corp. 38,258 1,314,545 ------------ 6,352,360 ------------ HEALTHCARE (4.4%) Aetna Inc. 47,288 2,323,732 Caremark Rx, Inc. (A) 28,691 1,411,023 Endo Pharmaceuticals Holdings (A) 25,300 830,093 HCA Inc. (A) 46,000 2,106,340 Humana, Inc. (A) 46,206 2,432,746 Invitrogen, Inc. (A) 30,000 2,103,900 McKesson Corp. 58,100 3,028,753 UnitedHealth Group, Inc. 85,135 4,755,641 Wellpoint, Inc. (A) 34,043 2,635,949 ------------ 21,628,177 ------------ 1 THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED MARCH 31, 2006 NO. OF FAIR SHARES VALUE -------- ------------ HOME CONSTRUCTION (0.2%) K.B. HOME 13,570 $ 881,779 ------------ INDEPENDENT ENERGY (1.4%) Anadarko Petroleum Corp. 14,670 1,481,817 Burlington Resources 39,689 3,647,816 Devon Energy Corp. 27,602 1,688,414 ------------ 6,818,047 ------------ INSURANCE (5.4%) AFLAC Inc. 24,250 1,094,403 Allstate Corp. 13,131 684,256 American International Group 81,188 5,365,715 Chubb Corp. 43,504 4,152,022 CIGNA Corp. 17,440 2,278,013 Fidelity National Financial, Inc. 8,800 312,664 Hartford Financial Services Group, Inc. 18,267 1,471,407 Lincoln National Corp. 8,821 481,538 Loew's Corp. 51,400 5,201,680 Prudential Financial, Inc. 44,536 3,376,274 St. Paul Travelers Companies, Inc. 42,300 1,767,717 ------------ 26,185,689 ------------ INTEGRATED ENERGY (7.9%) Chevron Corp. 139,099 8,063,569 ConocoPhillips 87,097 5,500,176 Exxon Mobil Corp. 375,809 22,871,736 Marathon Oil 29,466 2,244,425 ------------ 38,679,906 ------------ LODGING (0.5%) Marriott International, Inc. (A) 34,041 2,335,213 ------------ MACHINERY (0.5%) Ingersoll-Rand Co. (Class A) 55,258 2,309,232 ------------ MEDIA NON-CABLE (0.4%) News Corp. Limited 113,136 1,879,189 ------------ MEDICAL SUPPLIES (1.6%) Abbott Laboratories 49,759 2,113,265 Cardinal Health 7,681 572,388 Charles River Labs International (A) 31,500 1,544,130 Herman Miller Inc. 31,614 1,024,610 Medtronic, Inc. 54,204 2,750,853 ------------ 8,005,246 ------------ METALS (2.3%) Alcan, Inc. (A) 50,900 2,327,657 Nucor Corp. 41,143 4,311,375 Phelp's Dodge Corp. 55,280 4,451,698 ------------ 11,090,730 ------------ MULTIMEDIA (0.9%) Comcast Corp. (Class A) (A) 27,563 721,048 Time Warner Inc. 140,055 2,351,523 Walt Disney Co. 38,721 1,079,929 ------------ 4,152,500 ------------ NO. OF FAIR SHARES VALUE -------- ------------ OIL COMPANIES (5.3%) Apache Corp. (A) 20,400 $ 1,336,404 Baker Hughes Inc. 22,218 1,519,711 Ensco International, Inc. 4,800 246,960 Halliburton Co. 31,958 2,333,573 Occidental Petroleum Corp. (A) 34,093 3,158,716 Patterson-UTI Energy, Inc. (A) 17,900 572,084 Pride International, Inc. (A) 99,000 3,086,820 Schlumberger Ltd. 30,868 3,906,963 Sunoco Inc. 27,327 2,119,755 Talisman Energy (A) 71,100 3,781,098 Transocean, Inc. (A) 20,298 1,629,929 Valero Energy Corp. 37,873 2,264,048 ------------ 25,956,061 ------------ PAPER (0.1%) Kimberly Clark Corp. (A) 9,326 539,043 ------------ PHARMACEUTICALS (5.9%) Amgen, Inc. (A) 25,041 1,821,733 Biovail Corp. (A) 19,100 465,085 Bristol-Myers Squibb 39,075 961,636 Eli Lilly & Co. 22,526 1,245,688 Johnson & Johnson 99,304 5,880,783 King Pharmaceuticals, Inc. (A) 94,000 1,621,500 Merck & Co., Inc. 97,810 3,445,846 Mylan Laboratories 107,300 2,510,820 Pfizer Inc. 330,576 8,237,954 Schering-Plough Corp. 64,964 1,233,666 Wyeth 27,251 1,322,219 ------------ 28,746,930 ------------ REAL ESTATE (0.5%) Hospitality Properties Trust (A) 52,700 2,301,409 ------------ RETAIL (6.5%) Abercrombie & Fitch Co. 16,476 960,551 American Eagle Outfitters 25,526 762,206 Best Buy Co. Inc. (A) 24,825 1,388,462 Costco Wholesale Corp. 20,727 1,122,574 CVS Corp. 61,672 1,842,143 Dollar Tree Stores, Inc. (A) 86,500 2,393,455 Home Depot, Inc. 112,928 4,776,854 J C Penney Corporation, Inc. (A) 48,400 2,923,844 Lowe's Cos. (A) 48,337 3,114,836 Safeway, Inc. 94,200 2,366,304 Supervalu, Inc. 36,283 1,118,242 Target Corp. 55,087 2,865,075 The Gap, Inc. 24,786 463,002 Walgreen Co. 20,112 867,431 Wal-Mart Stores, Inc. 107,810 5,092,944 ------------ 32,057,923 ------------ 2 THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED MARCH 31, 2006 NO. OF FAIR SHARES VALUE -------- ------------ SERVICES (2.0%) eBay Inc. (A) 28,447 $ 1,111,140 Fair Issac Corp. 71,000 2,813,020 Fedex Corp. 18,800 2,123,272 Manpower, Inc. 30,100 1,721,118 Yahoo! Inc. (A) 59,324 1,913,792 ------------- 9,682,342 ------------- TECHNOLOGY (19.7%) ADTRAN, Inc. 58,300 1,526,294 Advanced Micro Devices (A) 39,255 1,301,696 Agere Systems, Inc. (Class A) (A) 121,900 1,833,376 Andrew Corp. (A) 102,100 1,253,788 Apple Computer (A) 48,952 3,070,269 Applera Corp. Applied Biosytems (A) 114,000 3,093,960 Arrow-Electronics, Inc. (A) 73,200 2,362,164 Atmel Corp. (A) 218,900 1,033,208 Avnet Inc. (A) 111,887 2,839,692 BMC Software Inc. (A) 222,400 4,817,184 Cadence Design Systems (A) 70,100 1,296,149 Check Point Software (A) 13,400 268,268 Cisco Systems, Inc. (A) 244,835 5,305,574 Computer Sciences Corp. (A) 23,100 1,283,205 Corning Inc. (A) 30,864 830,550 Dell Inc. (A) 111,904 3,330,263 EMC Corp. (A) 145,909 1,988,740 Freescale Semiconductor (Cl B) (A) 168,700 4,684,799 Hewlett Packard Co. 172,696 5,681,698 Intel Corp. 182,399 3,529,421 International Business Machine 96,093 7,924,790 Jabil Circuit 71,779 3,076,448 Lexmark International (Class A) 5,789 262,705 Microsoft Corp. (A) 272,025 7,401,800 Millipore Corp. 19,700 1,439,282 Motorola, Inc. 149,405 3,422,869 National Semiconductor Corp. (A) 61,400 1,709,376 NCR Corp. 118,600 4,956,294 Oracle Corp. 223,236 3,056,101 Qlogic Corp. (A) 118,200 2,287,170 Sanmina-SCI Corp. (A) 180,300 739,230 Solectron Corp. (A) 71,700 286,800 Sybase, Inc. (A) 49,572 1,046,961 Texas Instruments Inc. 98,574 3,200,698 Thomas & Betts Corp. (A) 41,399 2,127,081 Western Digital Corp. (A) 110,300 2,143,129 ------------- 96,411,032 ------------- TELECOMMUNICATIONS (4.0%) AT&T, Inc. 222,133 6,006,476 BellSouth Corp. 71,327 2,471,481 QUALCOMM, Inc. 32,952 1,667,701 Qwest Communications (A) 34,600 235,280 NO. OF FAIR SHARES VALUE -------- ------------ TELECOMMUNICATIONS (CONTINUED) Sprint Corp. 125,251 $ 3,236,486 Verizon Communications 179,340 6,108,320 ------------- 19,725,744 ------------- TOBACCO (0.9%) Altria Group 65,235 4,622,552 ------------- TRANSPORTATION SERVICES (1.7%) Burlington Northern Santa Fe 37,117 3,092,960 CSX Corp. 34,083 2,038,163 Genuine Parts Co. 600 26,298 Laidlaw International 67,200 1,827,840 United Parcel Service (Class B) 13,010 1,032,734 YRC Worldwide, Inc. (A) 11,200 426,272 ------------- 8,444,267 ------------- UNITED STATES AGENCY SECURITIES (0.3%) Fannie Mae 19,632 1,009,085 Freddie Mac 9,519 580,659 ------------- 1,589,744 ------------- UTILITIES (0.7%) Exelon Corp. 18,360 971,244 National Fuel Gas Co. 11,742 384,198 The Southern Co. 15,040 492,861 TXU Corp. 34,531 1,545,608 ------------- 3,393,911 ------------- TOTAL COMMON STOCKS (COST $415,820,063) 484,433,615 ------------- PRINCIPAL AMOUNT ----------- SHORT-TERM INVESTMENTS (0.7%) COMMERCIAL PAPER (0.7%) Freddie Mac 4.62% due April 3, 2006 $3,319,000 3,319,000 TOTAL SHORT-TERM ------------- INVESTMENTS (COST $3,318,161) 3,319,000 ------------- TOTAL INVESTMENTS (99.7%) (COST $419,138,224) (B) 487,752,615 ------------- OTHER ASSETS AND LIABILITIES (0.3%) 1,319,290 ------------- TOTAL NET ASSETS (100.0%) $489,071,905 ============= 3 THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED MARCH 31, 2006 NOTES (A) Non-income Producing Security. (B) At March 31, 2006, net unrealized appreciation for all securities was $68,614,391. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of fair value over cost of $92,869,462 and aggregate gross unrealized depreciation for all securities in which there was an excess of cost over fair value of $24,255,071. See Notes to Statement of Investments 4 THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT FOR VARIABLE ANNUITIES NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) MARCH 31, 2006 1. BUSINESS The Travelers Growth and Income Stock Account for Variable Annuities ("Account GIS") is a separate account of The Travelers Insurance Company ("The Company"), a 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, established on September 22, 1967, is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. Travelers Asset Management International Company, LLC ("TAMIC"), an indirect wholly owned subsidiary of The Company, provides fixed income management and advisory services for Account GIS. TIMCO Asset Management Inc. is a sub-advisor to Account GIS. This report is prepared for the general information of contract owners and is not an offer of units of Account GIS or shares of Account GIS's underlying holdings. It should not be used in connection with any offer except in conjunction with the Prospectus for Account GIS's product(s) offered by The Company. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by Account GIS in the preparation of its financial statements. 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 are accounted for on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Premiums and discounts are amortized to interest income utilizing the constant yield method. 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. -5- THE TRAVELERS GROWTH AND INCOME STOCK ACCOUNT FOR VARIABLE ANNUITIES NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED MARCH 31, 2006 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 March 31, 2006. 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 March 31, 2006. The operations of Account GIS form a part of the total operations of The Company and are not taxed separately. The Company is taxed as a life insurance company under the Internal Revenue Code of 1986, as amended (the "Code"). Under existing federal income tax law, no taxes are payable on the investment income and capital gains of Account GIS. Account GIS is not taxed as a "regulated investment company" under Subchapter M of the Code. The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Realized gains and losses from investment security transactions are reported on an identified cost basis. 3. INVESTMENTS The aggregate costs of purchases and proceeds from sales of investments (other than short-term securities), were $185,859,598 and $203,763,158, respectively; the costs of purchases and proceeds from sales of direct and indirect U.S. government securities were $156,191,926 and $152,899,000, respectively, for the three months ended March 31, 2006. Realized gains and losses from investment security transactions are reported on an identified cost basis. Net realized gains (losses) resulting from futures contracts were $158,172 for the three months ended March 31, 2006. 4. SUBSEQUENT EVENT On January 25, 2006, the Board of Managers of Account GIS approved a proposal to transfer the assets of Account GIS to the Batterymarch Growth and Income Stock Portfolio (the "Portfolio"), a series of the Met Investors Series Trust, in exchange for shares of the Portfolio. Account GIS was restructured as a sub-account of The Travelers Fund U for Variable Annuities, a unit investment trust. On April 28, 2006, the assets of Account GIS were transferred to the Portfolio pursuant to an Agreement and Plan of Reorganization approved on April 27, 2006. -6- THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) MARCH 31, 2006
PRINCIPAL FAIR AMOUNT VALUE ----------- ---------- BONDS (65.7%) ASSET BACKED SECURITIES (1.3%) CA Infrastructure, 6.42% Debentures, 2008 ........................................... $ 134,281 $ 134,937 Chase Funding Mortgage Loan Asset Backed Security Certificate, 5.83% Debentures, 2032 500,000 501,040 Chase Issuance Trust, 4.23% Debentures, 2013 ........................................ 500,000 482,650 ---------- 1,118,627 ---------- AUTOMOTIVE (0.9%) Daimler Chrysler NA Holdings, 7.30% Debentures, 2012 ................................ 700,000 740,543 ---------- BANKING (7.7%) ABN AMRO Holdings ADS, 4.80% Debentures, 2007 ....................................... 920,000 920,919 Bank of America Corp., 5.38% Debentures, 2014 ....................................... 600,000 592,964 Capital One Bank, 5.00% Debentures, 2009 ............................................ 620,000 613,091 Capital One Bank, 5.50% Debentures, 2015 ............................................ 200,000 194,455 HSBC Bank USA, 5.88% Debentures, 2034 ............................................... 400,000 387,087 Huntington National Bank, 4.65% Debentures, 2009 .................................... 400,000 391,865 JP Morgan Chase & Co., 5.25% Debentures, 2015 ....................................... 200,000 193,466 Royal Bank of Scotland Capital Trust, 4.71% Debentures, Perpetual ................... 300,000 278,217 Royal Bank of Scotland PLC, 5.05% Debentures, 2015 .................................. 400,000 384,798 U.S. Bancorp NA MN, 2.87% Debentures, 2007 .......................................... 1,000,000 979,786 U.S. Bancorp NA MN, 4.95% Debentures, 2014 .......................................... 200,000 191,556 Wachovia Corp. NA, 4.80% Debentures, 2014 ........................................... 300,000 282,557 Wachovia Corp. NA, 5.07% Debentures, 2014 ........................................... 700,000 706,498 Washington Mutual Bank, 5.13% Debentures, 2015 ...................................... 500,000 473,671 ---------- 6,590,930 ---------- BEVERAGE (1.2%) Pepsi Bottling Group, 4.63% Debentures, 2012 ........................................ 400,000 381,623 PepsiAmericas, Inc., 4.88% Debentures, 2015 ......................................... 700,000 666,195 ---------- 1,047,818 ---------- BROKERAGE (4.1%) Goldman Sachs Group Inc., 5.25% Debentures, 2013 .................................... 1,100,000 1,072,540 Lehman Brothers Holdings Inc., 4.80% Debentures, 2014 ............................... 700,000 664,699 Merrill Lynch & Co. Inc., 4.13% Debentures, 2009 .................................... 400,000 384,524 Merrill Lynch & Co. Inc., 4.25% Debentures, 2010 .................................... 400,000 384,408 Merrill Lynch & Co. Inc., 5.00% Debentures, 2015 .................................... 400,000 382,299 Morgan Stanley, 5.05% Debentures, 2011 .............................................. 600,000 588,778 ---------- 3,477,248 ---------- BUILDING MATERIALS (0.4%) D.R. Horton, 5.25% Debentures, 2015 ................................................. 400,000 366,620 ---------- COLLATERALIZED MORTGAGE OBLIGATIONS (9.8%) Bank of America Commercial Mortgage Inc., 4.87% Debentures, 2042 .................... 1,400,000 1,324,429 Commercial Mortgage Pass Through, 5.17% Debentures, 2044 ............................ 750,000 726,219 Credit Suisse First Boston Commercial Mortgage Corp., 4.89% Debentures, 2037 ........ 220,000 208,138 Credit Suisse First Boston Corp., 3.88% Debentures, 2009 ............................ 500,000 481,549 Credit Suisse First Boston Corp., 6.13% Debentures, 2011 ............................ 300,000 308,524 JP Morgan Chase & Co. Commercial Mortgage, 4.78% Debentures, 2042 ................... 3,000,000 2,820,084 JP Morgan Chase & Co. Commercial Mortgage, 4.92% Debentures, 2042 ................... 1,600,000 1,517,330 JP Morgan Chase & Co. Commercial Mortgage, 5.00% Debentures, 2042 ................... 580,000 553,595 JP Morgan Chase & Co. Commercial Mortgage, 5.00% Debentures, 2042 ................... 500,000 477,785 ---------- 8,417,653 ----------
-7- THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED MARCH 31, 2006
PRINCIPAL FAIR AMOUNT VALUE ----------- ---------- CONGLOMERATES (3.3%) Berskshire Hathaway, Inc., 4.75% Debentures, 2012 ................................... $ 400,000 $ 386,446 Berskshire Hathaway, Inc., 4.81% Debentures, 2008 ................................... 200,000 200,171 General Electric Co., 5.00% Debentures, 2013 ........................................ 1,300,000 1,266,313 Tyco International Ltd., 6.13% Debentures, 2008 ..................................... 1,000,000 1,014,153 ---------- 2,867,083 ---------- DEFENSE (0.8%) Northrop Grumman Corp., 4.08% Debentures, 2006 ...................................... 600,000 595,802 Northrop Grumman Corp., 7.13% Debentures, 2011 ...................................... 100,000 106,595 ---------- 702,397 ---------- ELECTRIC UTILITIES (1.0%) Dominion Resources Inc., 5.25% Debentures, 2033 ..................................... 400,000 380,782 PSEG Energy Holdings, 8.63% Debentures, 2008 ........................................ 450,000 471,375 ---------- 852,157 ---------- FINANCE (6.0%) AIG SunAmerica Global Financials, 5.85% Debentures, 2008 (A) ........................ 500,000 505,645 American General Financial Corp., 3.88% Debentures, 2009 ............................ 900,000 857,326 Caterpillar Financial Services Corp., 4.70% Debentures, 2012 ........................ 800,000 768,782 Countrywide Financial Corp., 4.50% Debentures, 2010 ................................. 400,000 383,531 Countrywide Home Loan, 4.00% Debentures, 2011 ....................................... 710,000 660,354 Ford Motor Credit Co., 5.70% Debentures, 2010 ....................................... 100,000 88,815 Glencore Funding LLC, 6.00% Debentures, 2014 (A) .................................... 300,000 286,045 Household Financial Corp., 6.38% Debentures, 2011 ................................... 1,400,000 1,454,340 Rabobank Capital Fund Trust III, 5.25% Debentures, Perpetual (A)..................... 200,000 189,398 ---------- 5,194,236 ---------- FOOD (1.2%) Fred Meyer Inc., 7.45% Debentures, 2008 ............................................. 1,000,000 1,033,897 ---------- HEALTHCARE (0.5%) Wellpoint, Inc., 6.80% Debentures, 2012 ............................................. 400,000 425,526 ---------- INDEPENDENT ENERGY (1.1%) Anadarko Financial Co., 6.75% Debentures, 2011 ...................................... 400,000 421,924 Devon Energy Corp., 6.88% Debentures, 2011 .......................................... 500,000 530,719 ---------- 952,643 ---------- INSURANCE (1.1%) GE Global Insurnace, 7.00% Debentures, 2026 ......................................... 100,000 109,765 Massmutual Global Funding, 2.55% Debentures, 2008 (A) ............................... 900,000 847,279 ---------- 957,044 ---------- MACHINERY (0.2%) Cooper Cameron Corp. , 2.65% Debentures, 2007 ....................................... 200,000 193,450 ---------- MEDIA CABLE (2.2%) Comcast Cable Communications, 8.50% Debentures, 2027 ................................ 500,000 595,867 Cox Communications Inc., 7.13% Debentures, 2012 ..................................... 800,000 840,338 Liberty Media Corp., 6.41% Debentures, 2006 ......................................... 484,000 486,584 ---------- 1,922,789 ---------- METALS (0.4%) Phelps Dodge Corp., 8.75% Debentures, 2011 .......................................... 300,000 339,389 ---------- MULTIMEDIA (3.0%) Clear Channel Communications Inc., 4.40% Debentures, 2011 ........................... 200,000 183,510 Time Warner Inc., 6.15% Debentures, 2007 ............................................ 2,400,000 2,418,612 ---------- 2,602,122 ----------
-8- THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED MARCH 31, 2006
PRINCIPAL FAIR AMOUNT VALUE ----------- ---------- NATURAL GAS DISTRIBUTION (0.9%) Duke Capital LLC, 4.33% Debentures, 2006 ............................................ $ 400,000 $ 397,801 Southern California Gas Co., 4.38% Debentures, 2011 ................................. 400,000 382,728 ---------- 780,529 ---------- NATURAL GAS PIPELINE (0.2%) Consolidated Natural Gas Co., 5.00% Debentures, 2014 ................................ 200,000 187,829 ---------- PAPER (0.2%) International Paper, 5.30% Debentures, 2015 ......................................... 200,000 187,801 ---------- PHARMACEUTICALS (1.4%) Wyeth, 5.50% Debentures, 2014 ....................................................... 1,200,000 1,185,913 ---------- REAL ESTATE (4.3%) Avalonbay Communties, Inc., 4.95% Debentures, 2013 .................................. 100,000 95,559 Colonial Realty LP, 4.75% Debentures, 2010 .......................................... 200,000 192,962 Health Retirement Properties, 6.25% Debentures, 2016 ................................ 300,000 302,901 iStar Financial, 6.00% Debentures, 2010 ............................................. 440,000 443,257 Kimco Reality, 4.88% Debentures, 2006 ............................................... 100,000 100,029 Nationwide Health Properties Inc., 6.90% Debentures, 2037 ........................... 2,100,000 2,161,249 Simon Property Group, Inc., 4.60% Debentures, 2010 .................................. 200,000 193,037 Simon Property Group, Inc., 5.10% Debentures, 2015 .................................. 200,000 189,518 ---------- 3,678,512 ---------- SUPERMARKETS (1.1%) Delhaize America, Inc., 9.00% Debentures, 2031 ...................................... 200,000 232,337 Safeway Inc., 6.50% Debentures, 2011 ................................................ 700,000 721,740 ---------- 954,077 ---------- TECHNOLOGY (0.9%) Computer Associates International, 5.25% Debentures, 2009 (A) ....................... 800,000 779,350 ---------- TELECOMMUNICATIONS (1.9%) AT&T Inc., 6.45% Debentures, 2034 ................................................... 400,000 394,988 Deutsche Telecomm International Financial, 8.25% Debentures, 2030.................... 200,000 239,936 Sprint Capital Corp., 6.13% Debentures, 2008 ........................................ 720,000 733,205 Telecom Italia S.p.A., 4.00% Debentures, 2010 ....................................... 300,000 282,271 ---------- 1,650,400 ---------- TOBACCO (1.1%) Altria Group, 5.63% Debentures, 2008 ................................................ 900,000 903,725 ---------- UNITED STATES AGENCY SECURITIES (3.1%) Fannie Mae, 1.75% Debentures, 2006 .................................................. 1,300,000 1,291,464 Fannie Mae, 4.00% Debentures, 2007 .................................................. 1,400,000 1,387,102 ---------- 2,678,566 ---------- UTILITIES (4.4%) Kinder Morgan , 5.13% Debentures, 2014 .............................................. 200,000 189,833 Pepco Holdings, 5.50% Debentures, 2007 .............................................. 1,600,000 1,600,690 SP Powerassets Ltd., 5.00% Debentures, 2013 (A) ..................................... 900,000 866,996 Xcel Energy Inc., 3.40% Debentures, 2008 ............................................ 1,200,000 1,148,736 ---------- 3,806,255 ---------- TOTAL BONDS (COST $58,014,290) .................................................................. 56,595,129 ----------
-9- THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED MARCH 31, 2006
PRINCIPAL FAIR AMOUNT VALUE ----------- ------------ UNITED STATES GOVERNMENT SECURITIES (26.4%) United States of America Treasury, 2.88% Debentures, 2006............................ $ 3,000,000 $ 2,962,266 United States of America Treasury, 4.00% Debentures, 2007............................ 8,000,000 7,909,064 United States of America Treasury, 2.75% Debentures, 2007............................ 2,400,000 2,333,719 United States of America Treasury, 2.75% Debentures, 2008............................ 7,500,000 7,257,135 United States of America Treasury, 3.88% Debentures, 2010............................ 100,000 96,484 United States of America Treasury, 4.25% Debentures, 2015............................ 300,000 285,879 United States of America Treasury, 4.50% Debentures, 2015............................ 1,800,000 1,747,267 United States of America Treasury, 5.25% Debentures, 2029............................ 100,000 102,711 ------------ TOTAL UNITED STATES GOVERNMENT SECURITIES (COST $23,013,818)................................................................... 22,694,525 ------------ SHORT TERM INVESTMENTS (6.9%) COMMERCIAL PAPER (6.9%) Kittyhawk Funding 4.83% Due April 3, 2006............................................................ 2,623,000 2,623,000 ------------ Chesham FNC 4.95% Due April 3, 2006............................................................ 3,331,000 3,331,000 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $5,952,403)........................................................ 5,954,000 ------------ TOTAL INVESTMENTS (99.0%) (COST $86,980,511) (B)............................................................... 85,243,654 ------------ OTHER ASSETS AND LIABILITIES (1.0%).................................................. 899,937 ------------ TOTAL NET ASSETS (100.0%)............................................................ $ 86,143,591 ============
NOTES (A) 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 March 31, 2006, The Travelers Quality Bond Account for Variable Annuities held 4.0% of its net assets, with a current market value of $3,474,713, in securities restricted as to resale (B) At March 31, 2006, net unrealized depreciation for all securities was $1,736,857. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of fair value over cost of $405,953 and aggregate gross unrealized depreciation for all securities in which there was an excess of cost over fair value of $2,142,810. See Notes to Statement of Investments -10- THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) MARCH 31, 2006 1. BUSINESS The Travelers Quality Bond Account for Variable Annuities ("Account QB") is a separate account of The Travelers Insurance Company ("The Company"), a 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, established on July 29, 1974, is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Travelers Asset Management International Company, LLC ("TAMIC"), an indirect wholly owned subsidiary of The Company, provides fixed income management and advisory services for Account QB. Salomon Brothers Asset Management Inc. is a sub-advisor to Account QB. This report is prepared for the general information of contract owners and is not an offer of units of Account QB or shares of Account QB's underlying holdings. It should not be used in connection with any offer except in conjunction with the Prospectus for Account QB's product(s) offered by The Company. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by Account QB in the preparation of its financial statements. 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 are accounted for on the trade date. Interest income is recorded on the accrual basis. Premiums and discounts are amortized to interest income utilizing the constant yield method. 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. -11- THE TRAVELERS QUALITY BOND ACCOUNT FOR VARIABLE ANNUITIES NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) MARCH 31, 2006 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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. 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 March 31, 2006. The operations of Account QB form a part of the total operations of The Company and are not taxed separately. The Company is taxed as a life insurance company under the Internal Revenue Code of 1986, as amended (the "Code"). Under existing federal income tax law, no taxes are payable on the investment income and capital gains of Account QB. Account QB is not taxed as a "regulated investment company" under Subchapter M of the Code. The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 3. INVESTMENTS The aggregate proceeds from sales of investments (other than short-term securities) were $70,250; the costs of purchases and proceeds from sales of direct and indirect U.S. government securities were $7,293,457and $7,462,207, respectively, for the three months ended March 31, 2006. Realized gains and losses from investment security transactions are reported on an identified cost basis. 4. SUBSEQUENT EVENT On January 25, 2006, the Board of Managers of Account QB approved a proposal to transfer the assets of Account QB to the BlackRock Bond Income Portfolio (the "Portfolio"), a series of the Metropolitan Series Fund, Inc., in exchange for Class A shares of the Portfolio. Account QB was restructured as a sub-account of The Travelers Fund U for Variable Annuities, a unit investment trust. On April 28, 2006, the assets of Account QB were transferred to the Portfolio pursuant to an Agreement and Plan of Reorganization approved on April 27, 2006. -12- THE TRAVELERS MONEY MARKET ACCOUNT FOR VARIABLE ANNUITIES STATEMENT OF INVESTMENTS (UNAUDITED) MARCH 31, 2006
PRINCIPAL FAIR AMOUNT VALUE ------------------ ---------------- SHORT-TERM INVESTMENTS (99.9%) COMMERCIAL PAPER (87.1%) Albis Capital Corp., 4.81% Due April 24, 2006................................... $ 2,500,000 $ 2,493,000 Atomium Funding Corp., 4.76% Due April 4, 2006.................................. 2,500,000 2,499,662 Bear Stearns, 4.92% Due April 3, 2006........................................... 1,353,000 1,353,000 Beethoven Funding Corp., 4.84% Due april 21, 2006............................... 3,000,000 2,992,779 Brahms, 4.91% Due may 2, 2006................................................... 3,000,000 2,988,352 B Square, 4.90% Due April 6, 2006............................................... 3,000,000 2,998,788 Cimarron, 4.90% Due May 2, 2006................................................. 3,000,000 2,988,399 Cobbler Funding LLC, 4.84% Due May 10, 2006..................................... 250,000 249,767 Crown Point Capital , 4.76% Due April 4, 2006................................... 2,000,000 1,999,730 Ebury Finance, 4.90% Due May 5, 2006............................................ 3,000,000 2,985,081 General Electric Capital , 4.68% Due April 3, 2006.............................. 3,000,000 3,000,000 Legacy Capital Corp., 4.71% Due April 5, 2006................................... 3,100,000 3,099,166 Morrigan TRR LLC , 4.90% Due April 25, 2006..................................... 2,752,000 2,743,876 ORM LLC, 4.90% Due May 2, 2006.................................................. 3,000,000 2,988,399 Prudential , 4.85% Due May 10, 2006............................................. 3,000,000 2,985,297 Rabobank USA Financial Corp., 4.84% Due April 4, 2006........................... 3,000,000 2,999,604 Tasmen Funding, 4.79% Due April 12, 2006........................................ 3,000,000 2,996,388 Toyota Motor Credit, 4.84% Due May 9, 2006...................................... 3,000,000 2,985,696 Vic Financial Corp., 5.16% Due September 27, 2006............................... 2,000,000 1,950,490 Victor, 4.87% Due April 26, 2006................................................ 3,000,000 2,990,742 White Pine Financial, 4.75% Due April 10, 2006.................................. 3,000,000 2,997,189 ----------------- TOTAL COMMERCIAL PAPER (COST $55,272,299).............................................................. 55,285,405 ----------------- UNITED STATES GOVERNMENT SECURITIES (12.8%) Fannie Mae, 5.05% Due February 23, 2007........................................ 6,000,000 5,725,890 Freddie Mac, 4.96% Due February 6, 2007......................................... 2,500,000 2,391,743 ----------------- TOTAL UNITED STATES GOVERNMENT SECURITIES (COST $8,134,841)............................................................... 8,117,633 ----------------- TOTAL INVESTMENTS (99.9%) (COST $63,407,140).............................................................. 63,403,038 ----------------- OTHER ASSETS AND LIABILITIES (0.1%)............................................. 86,817 ----------------- TOTAL NET ASSETS (100.0%)....................................................... $ 63,489,855 =================
-13- THE TRAVELERS MONEY MARKET ACCOUNT FOR VARIABLE ANNUITIES NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) MARCH 31, 2006 1. BUSINESS The Travelers Money Market Account for Variable Annuities ("Account MM") is a separate account of The Travelers Insurance Company ("The Company"), a 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, established on December 29, 1981, is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Travelers Asset Management International Company, LLC ("TAMIC"), an indirect wholly owned subsidiary of The Company, provides fixed income management and advisory services for Account MM. Salomon Brothers Asset Management Inc. is a sub-advisor to Account MM. This report is prepared for the general information of contract owners and is not an offer of units of Account MM or shares of Account MM's underlying holdings. It should not be used in connection with any offer except in conjunction with the Prospectus for Account MM's product(s) offered by The Company. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by Account MM in the preparation of its financial statements. 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 are accounted for on the trade date. Interest income is recorded on the accrual basis. Premiums and discounts are amortized to interest income utilizing the constant yield method. 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 March 31, 2006. The operations of Account MM form a part of the total operations of The Company and are not taxed separately. The Company is taxed as a life insurance company under the Internal Revenue Code of 1986, as amended (the "Code"). Under existing federal income tax law, no taxes are payable on the investment income and capital gains of Account MM. Account MM is not taxed as a "regulated investment company" under Subchapter M of the Code. The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. -14- THE TRAVELERS MONEY MARKET ACCOUNT FOR VARIABLE ANNUITIES NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) - CONTINUED MARCH 31, 2006 3. SUBSEQUENT EVENT On January 25, 2006, the Board of Managers of Account MM approved a proposal to transfer the assets of Account MM to the BlackRock Money Market Portfolio (the "Portfolio"), a series of the Metropolitan Series Fund, Inc., in exchange for Class A shares of the Portfolio. Account MM was restructured as a sub-account of The Travelers Fund U for Variable Annuities, a unit investment trust. On April 28, 2006, the assets of Account MM were transferred to the Portfolio pursuant to an Agreement and Plan of Reorganization approved on April 27, 2006. -15- 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) under the 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. (a) 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 5/25/06 ------- 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 5/25/06 ------- 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 5/25/06 -------