UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 10-Q



                Quarterly Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934


                  For the Quarterly Period Ended June 30, 2000

                  Commission file numbers: 33-77213, 33-62953,
                    33-88360, 33-89676, 333-00995, 333-02867,
                   333-24989, 333-25761, 33-91400, 333-25733,
                                  and 333-26695

                   American Skandia Life Assurance Corporation

                    Incorporated in the State of Connecticut

                                   06-1241288
                      (Federal Employer Identification No.)

                               One Corporate Drive
                           Shelton, Connecticut 06484

                         Telephone Number (203) 926-1888




Indicate by check mark  whether the registrant  (1) has filed all reports to be
filed by Section 13 or 15(d) of the Securities  Exchange Act of 1934 during the
preceding 12 months and (2) has been subject to such filing requirements for the
past 90 days.

Yes   x   No __


As of August 11, 2000, there were 25,000 shares of outstanding common stock, par
value $100 per share, of the registrant, consisting of 100 shares of voting and
24,900  shares of non-voting  common stock, all of which were owned by American
Skandia Inc., a  wholly-owned subsidiary of Skandia  Insurance  Company Ltd., a
Swedish corporation.


<PAGE>


                   AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
          (a wholly-owned subsidiary of Skandia Insurance Company Ltd.)

                                TABLE OF CONTENTS


                                                                          Page

PART I.  FINANCIAL INFORMATION:

    Item 1.  Financial Statements:

         Consolidated Statements of Financial Condition -
            June 30, 2000 (unaudited)
            and December 31, 1999                                           3

         Consolidated Statements of Income (unaudited) -
            Six months ended June 30, 2000
            and June 30, 1999                                               4

         Consolidated Statements of Income (unaudited) -
            Three months ended June 30, 2000
            and June 30, 1999                                               5

         Consolidated  Statements of Shareholder's Equity -
            Six months ended June 30, 2000 (unaudited)
            and year ended December 31, 1999                                6

         Consolidated Statements of Cash Flows (unaudited) -
            Six months ended June 30, 2000
            and June 30, 1999                                               7

         Notes to Unaudited Consolidated Financial Statements               8


    Item 2.  Management's Discussion and Analysis of Financial Condition
             and Results of Operations - Six months ended June 30, 2000     11


    Item 3.  Quantitative and Qualitative Disclosures of Market Risk        15



PART II.  OTHER INFORMATION:

    Item 6.  Exhibits and Reports on Form 8-K                               15

             Signatures                                                     16

             Exhibit Index                                                  17




<PAGE>


                   AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
         (a wholly-owned subsidiary of Skandia Insurance Company Ltd.)

                 Colsolidated Statements of Financial Condition
                                 (in thousands)
<TABLE>
<CAPTION>

                                                                        June 30,                  December 31,
                                                                          2000                        1999
                                                                    ----------------            ----------------
                                                                       (unaudited)
ASSETS

Investments:
<S>                                                                 <C>                         <C>
  Fixed maturities - at amortized cost                              $           -               $         3,360
  Fixed maturities - at fair value                                          205,294                     198,165
  Investment in mutual funds - at fair value                                 22,531                      16,404
  Derivative instruments                                                        -                           189
  Policy loans                                                                1,932                       1,270
                                                                      --------------              --------------

    Total investments                                                       229,757                     219,388

Cash and cash equivalents                                                   106,999                      89,212
Accrued investment income                                                     3,698                       4,054
Deferred acquisition costs                                                1,322,191                   1,087,705
Reinsurance receivable                                                        1,453                       4,062
Income tax receivable - deferred                                             42,001                      51,726
Income tax recoverable                                                          200                           -
State insurance licenses                                                      4,188                       4,263
Fixed assets                                                                  5,425                       3,305
Other assets                                                                 74,056                      36,698
Separate account assets                                                  32,277,596                  29,381,166
                                                                    ----------------            ----------------

  Total assets                                                      $    34,067,564             $    30,881,579
                                                                    ================            ================


LIABILITIES AND SHAREHOLDER'S EQUITY

Liabilities:
Reserves for future insurance policies and contracts                $        86,614             $        73,292
Drafts outstanding                                                           54,231                      51,059
Accounts payable and accrued expenses                                       155,971                     158,590
Income tax payable                                                              -                        24,268
Payable to affiliates                                                       196,819                      68,736
Future fees payable to parent                                               706,566                     576,034
Short-term borrowing                                                         10,000                      10,000
Surplus notes                                                               179,000                     179,000
Separate account liabilities                                             32,277,596                  29,381,166
                                                                    ----------------            ----------------

  Total Liabilities                                                      33,666,797                  30,522,145
                                                                    ----------------            ----------------

Shareholder's equity:
Common stock, $100 par value, 25,000 shares authorized,
    issued and outstanding                                                    2,500                       2,500
Additional paid-in capital                                                  217,479                     215,879
Retained earnings                                                           180,271                     141,162
Accumulated other comprehensive income                                          517                        (107)
                                                                    ----------------            ----------------

    Total Shareholder's equity                                              400,767                     359,434
                                                                    ----------------            ----------------

    Total liabilities and shareholder's equity                      $    34,067,564             $    30,881,579
                                                                    ================            ================
</TABLE>


            See notes to unaudited consolidated financial statements.


<PAGE>


                   AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
          (a wholly-owned subsidiary of Skandia Insurance Company Ltd.)

                        Consolidated Statements of Income
                                 (in thousands)
                                   (unaudited)
<TABLE>
<CAPTION>

                                                                           Six Months Ended June 30,
                                                                         2000                     1999
                                                                    -------------            --------------

REVENUES

<S>                                                                 <C>                      <C>
Annuity and life insurance charges and fees                         $    211,208             $     128,807
Fee income                                                                62,056                    36,290
Net investment income                                                      6,504                     5,496
Premium income                                                             2,259                       908
Net realized capital gains                                                  (707)                      320
Other                                                                      1,118                       842
                                                                    -------------            --------------

  Total revenues                                                         282,438                   172,663
                                                                    -------------            --------------


EXPENSES

Benefits:
  Annuity and life insurance benefits                                        278                       380
  Change in annuity and life insurance policy reserves                     9,505                     9,278
  Cost of minimum death benefit reinsurance                                  -                       2,955
  Return credited to contractowners                                       (2,362)                   (3,862)
                                                                    -------------            --------------

                                                                           7,421                     8,751

Expenses:
  Underwriting, acquisition and other insurance
    expenses                                                             164,425                    93,941
  Interest expense                                                        56,220                    29,218
                                                                    -------------            --------------

                                                                         220,645                   123,159
                                                                    -------------            --------------

  Total benefits and expenses                                            228,066                   131,910
                                                                    -------------            --------------

    Income from operations before income tax                              54,372                    40,753

      Income tax expense                                                  30,342                    10,986
                                                                    -------------            --------------

        Net income                                                  $     39,109              $     29,767
                                                                    =============            ==============
</TABLE>


           See notes to unaudited consolidated financial statements.


<PAGE>


                   AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
          (a wholly-owned subsidiary of Skandia Insurance Company Ltd.)

                        Consolidated Statements of Income
                                 (in thousands)
                                   (unaudited)
<TABLE>
<CAPTION>

                                                                          Three Months Ended June 30,
                                                                         2000                     1999
                                                                    -------------            --------------

REVENUES

<S>                                                                 <C>                      <C>
Annuity and life insurance charges and fees                         $    106,375             $      68,486
Fee income                                                                30,913                    19,313
Net investment income                                                      3,628                     2,842
Premium income                                                             1,656                       159
Net realized capital gains                                                (1,436)                       25
Other                                                                        442                       477
                                                                    -------------            --------------

  Total revenues                                                         141,578                    91,302
                                                                    -------------            --------------


EXPENSES

Benefits:
  Annuity and life insurance benefits                                        145                       159
  Change in annuity and life insurance policy reserves                     6,881                     8,521
  Cost of minimum death benefit reinsurance                                  -                       1,206
  Return credited to contractowners                                          314                      (432)
                                                                    -------------            --------------

                                                                           7,340                     9,454

Expenses:
  Underwriting, acquisition and other insurance
    expenses                                                              88,133                    42,956
  Interest expense                                                        25,952                    15,393
                                                                    -------------            --------------

                                                                         114,085                    58,349
                                                                    -------------            --------------

  Total benefits and expenses                                            121,425                    67,803
                                                                    -------------            --------------

    Income from operations before income tax                              20,153                    23,499

      Income tax expense                                                   5,225                     7,142
                                                                    -------------            --------------

        Net income                                                  $     14,928              $     16,357
                                                                    =============            ==============
</TABLE>


           See notes to unaudited consolidated financial statements.


<PAGE>


                   AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
          (a wholly-owned subsidiary of Skandia Insurance Company Ltd.)

                 Consolidated Statements of Shareholder's Equity
                                 (in thousands)

<TABLE>
<CAPTION>

                                                             June 30,            December 31,
                                                               2000                  1999
                                                         ---------------      ------------------
                                                           (unaudited)

Common stock:
<S>                                                      <C>                  <C>
  Beginning balance                                      $        2,500       $           2,000
  Increase in par value                                               -                     500
                                                         ---------------      ------------------

    Ending balance                                                2,500                   2,500
                                                         ---------------      ------------------

Additional paid in capital:
  Beginning balance                                             215,879                 179,889
  Transferred to common stock                                         -                    (500)
  Additional contributions                                        1,600                  36,490
                                                         ---------------      ------------------

    Ending balance                                              217,479                 215,879
                                                         ---------------      ------------------

Retained earnings:
  Beginning balance                                             141,162                  64,993
  Net income                                                     39,109                  76,169
                                                         ---------------      ------------------

    Ending balance                                              180,271                 141,162
                                                         ---------------      ------------------

Accumulated other comprehensive income:

  Beginning balance                                                (107)                  3,535
  Other comprehensive income                                        624                  (3,642)
                                                         ---------------      ------------------

    Ending Balance                                                  517                    (107)
                                                         ---------------      ------------------

      Total shareholder's equity                         $      400,767       $         359,434
                                                         ===============      ==================
</TABLE>


            See notes to unaudited consolidated financial statements.


<PAGE>


                   AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
          (a wholly-owned subsidiary of Skandia Insurance Company Ltd.)

                      consolidated Statements of Cash Flows
                                 (in thousands)
                                   (unaudited)
<TABLE>
<CAPTION>

                                                                      Six Months Ended June 30,
                                                                       2000               1999
                                                                  -------------       -------------

Cash flow from operating activities:

<S>                                                               <C>                       <C>
  Net income                                                      $     39,109        $     29,767
  Adjustments to reconcile net income to net
    cash used in operating activities:
      Amortization and depreciation                                      2,514                 135
      Deferred tax expense/(benefit)                                     9,389                (673)
      Increase in policy reserves                                        9,381              11,633
      Increase in payable to affiliates                                128,083                 638
      Decrease in income tax payable                                   (24,468)             (4,545)
      Increase in other assets                                         (69,523)             (1,068)
      Decrease/(increase) in accrued investment income                     356                (220)
      Decrease/(increase) in reinsurance receivable                      2,609                (638)
      Increase in deferred acquisition costs                          (234,485)           (163,591)
      Decrease/increase in accounts payable and accrued expenses        (2,620)             16,404
      Increase in drafts outstanding                                     3,172               2,133
      Change in foreign currency translation, net                         (248)                704
      Net realized capital gain                                            707                (320)
                                                                  -------------       -------------

        Net cash used in operating activities                         (136,024)           (109,641)
                                                                  -------------       -------------

Cash flow from investing activites:

      Purchase of fixed maturity investments                          (102,374)            (29,582)
      Proceeds from sale and maturity of fixed
        maturity investments                                           100,268              29,504
      Purchase of derivatives                                           (2,274)                  -
      Purchase of shares in mutual funds                               (10,600)            (13,918)
      Proceeds from sale of shares in mutual funds                       3,274              11,879
      Purchase of fixed assets                                          (2,059)                  -
      Increase in policy loans                                            (662)               (168)
                                                                  -------------       -------------

        Net cash used in investing activities                          (14,427)             (2,285)
                                                                  -------------       -------------

Cash flow from financing activities:

      Capital contribution from parent                                   1,600              11,690
      Increase in future fees payable to parent, net                   130,532              95,932
      Net deposits to/(withdrawals from) contractowner accounts         36,106              (3,551)
                                                                  -------------       -------------

        Net cash provided by financing activities                      168,238             104,071
                                                                  -------------       -------------

          Net increase/(decrease) in cash and cash
            equivalents                                                 17,787              (7,855)

          Cash and cash equivalents at beginning of period              89,212              77,525
                                                                  -------------       -------------

            Cash and cash equivalents at end of period            $    106,999        $     69,670
                                                                  =============       =============

     Income taxes paid                                            $     15,263        $     16,205
                                                                  =============       =============

      Interest paid                                               $     50,284        $     29,900
                                                                  =============       =============

</TABLE>


            See notes to unaudited consolidated financial statements.


<PAGE>


                   AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
          (a wholly-owned subsidiary of Skandia Insurance Company Ltd.)

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                                  June 30, 2000


1.  BASIS OF PRESENTATION

    The  accompanying   unaudited   consolidated  financial  statements  of
    American  Skandia Life  Assurance  Corporation  (the Company) have been
    prepared in accordance with generally  accepted  accounting  principles
    for interim  financial  information  and with the  instructions to Form
    10-Q and Article 10 of Regulation S-X. Accordingly, they do not include
    all of the  information  and footnotes  required by generally  accepted
    accounting principles for complete financial statements. In the opinion
    of  management,   all  adjustments   (consisting  of  normal  recurring
    accruals)  considered  necessary  for a  fair  presentation  have  been
    included.  Operating  results for the  six-month  period ended June 30,
    2000 are not necessarily indicative of the results that may be expected
    for the year ending December 31, 2000. For further  information,  refer
    to the consolidated  financial  statements and footnotes thereto in the
    Company's audited  consolidated  financial  statements on Form 10-K for
    the year ended December 31, 1999.

    Certain  reclassifications  have been made to prior  period  amounts to
    conform to the current period presentation.

2.  NEW ACCOUNTING PRONOUNCEMENT

    In June 1998, the Financial  Accounting Standards Board ("FASB") issued
    Statement of Financial Accounting Standard 133 ("FAS 133"), "Accounting
    for  Derivative   Instruments  and  Hedging   Activities"   (FAS  133).
    Subsequently,  in July 1999,  the FASB issued FAS 137  "Deferral of the
    Effective Date of FASB Statement 133". The adoption date was delayed to
    fiscal years  beginning  after June 15, 2000.  The Company is currently
    evaluating  the  potential  impact of this  statement on its  financial
    position.

3.  SEGMENT REPORTING

    During 1998, to complement its annuity  products,  the Company launched
    marketing and  operational  activities  towards the release of variable
    life insurance and qualified  retirement plan annuity products.  Assets
    under  management  and  sales  for the  products  other  than  variable
    annuities  have not been  significant  enough to warrant  full  segment
    disclosures as required by FAS 131,  "Disclosures  about Segments of an
    Enterprise and Related Information."

<PAGE>


                   AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
          (a wholly-owned subsidiary of Skandia Insurance Company Ltd.)

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (continued)

                                  June 30, 2000



4.  COMPREHENSIVE INCOME

    The components of comprehensive  income, net of tax, for the six months
    ended June 30, 2000 and 1999 were as follows:

                  (in thousands)                       2000              1999

    Net income                                        $39,109          $29,767
    Other comprehensive income:
     Net Unrealized investment gain/(loss) on
      available for sale securities                       785           (4,083)

     Foreign currency translation                        (161)             456

    Other comprehensive income                            624           (3,627)

    Comprehensive income                              $39,733          $26,140

    The components of accumulated other  comprehensive  income, net of tax,
    as of June 30, 2000 and December 31, 1999 were as follows:

                  (in thousands)                       2000              1999

    Unrealized investment gains/(losses)              $   530         ($   255)
    Foreign currency translation                          (13)             148

    Accumulated other comprehensive income            $   517         ($   107)


5.  FOREIGN ENTITY

    The  Company  has a 99.9%  ownership  in  Skandia  Vida,  S.A.  de C.V.
    ("Skandia Vida") which is a life insurance company domiciled in Mexico,
    selling long-term  savings products within Mexico.  Skandia Vida, which
    is fully  consolidated in the accompanying  financial  statements,  had
    total  shareholders'  equity  of  $5,392,000  as of June  30,  2000 and
    $4,592,000 as of December 31, 1999 and has generated losses of $552,000
    and  $1,220,000  for the six  months  ended  June 30,  2000  and  1999,
    respectively.


<PAGE>


                   AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
          (a wholly-owned subsidiary of Skandia Insurance Company Ltd.)

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (continued)

                                  June 30, 2000


6.  FUTURE FEES PAYABLE TO PARENT

    On March 22, 2000,  the Company sold to its Parent,  American  Skandia,
    Inc.  ("ASI"),  certain  rights  to  receive  future  fees and  charges
    expected to be realized on the variable  portion of a designated  block
    of deferred  annuity  contracts issued during the period August 1, 1999
    through  January 31, 2000. In connection  with this  transaction,  ASI,
    through a trust,  issued  collateralized  notes in a private  placement
    which are  secured  by the rights to receive  future  fees and  charges
    purchased from the Company.

    Under the terms of the Purchase Agreement,  the rights sold provide for
    ASI to receive a percentage of future mortality and expense charges and
    contingent  deferred  sales  charges  expected to be realized  over the
    remaining   surrender  charge  period  of  the  designated   contracts,
    generally  seven years.  The Company did not sell the rights to receive
    future fees and charges after the  expiration  of the surrender  charge
    period.

    The proceeds  from the sale have been  recorded as a liability  and are
    being  amortized  over the  remaining  surrender  charge  period of the
    designated  contracts using the interest  method.  The present value of
    the future fees and charges  expected to be realized on the  designated
    contracts at March 22, 2000, discounted at 7.5%, was $169,459,000.

    Expected  payments of future fees payable to ASI under this transaction
    are as follows:

                                 (in thousands)
           Period Ending
            December 31,                             Amount
              2000                                  $ 11,807
              2001                                    18,068
              2002                                    20,266
              2003                                    22,653
              2004                                    25,243
              2005                                    28,053
              2006                                    28,097
              2007                                    15,272
                                                    --------
              Total                                 $169,459
                                                    ========


7.  SUBSEQUENT EVENT

    On July 18, 2000,  the Company sold  certain  rights to receive  future
    fees and contract charges expected to be received on variable  portions
    of a designated  block of deferred  annuity  contracts  issued  between
    February 1, 2000 and April 30, 2000. This  transaction is the latest in
    a series of agreements with ASI, as described in Note 6.

    This  transaction  has an effective  date of July 18, 2000. The present
    value as of this date, discounted at 7.25%, was $92,399,000.

<PAGE>


                   AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
         (a wholly-owned subsidiary of Skandia Insurance Company Ltd.)

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS

                         Six months ended June 30, 2000


Management's  Discussion and  Analysis of  Financial  Condition  and Results of
Operations  should  be read in conjunction  with the June  30,  2000  financial
statements and the notes included herein.

American Skandia Life Assurance Corporation ("the Company"), with its principal
offices in  Shelton,  Connecticut,  is a wholly  owned subsidiary  of  American
Skandia, Inc. ("ASI"), whose ultimate parent is Skandia Insurance Company Ltd.,
a Swedish corporation. The Company has 99.9% ownership in Skandia Vida, S.A. de
C.V. ("Skandia Vida") which is a life insurance company domiciled in Mexico.

The Company's products are sold to individuals, businesses and pension plans to
provide  for  long-term  savings  and  retirement purposes  and to address  the
economic impact of premature death,  estate and business planning  concerns and
supplemental retirement needs.

The  Company  markets  its  products  to  independent  financial  planners  and
broker-dealers  through an internal  field  marketing staff.  In addition,  the
Company markets through and in conjunction with financial institutions  such as
banks that are permitted directly, or through affiliates, to sell annuities and
life insurance.

The  Company is  primarily  in the  business  of issuing long-term  savings and
retirement  products to  individuals,  groups and qualified pension plans.  The
Company was the second largest  provider of variable  annuity contracts for the
individual  market in the  United  States  during  the first six months of 2000
according to The Variable Annuity Research & Data Service ("VARDS").

Since its business  inception in 1988, the Company has offered an  increasingly
wide array of  annuities,  including: a) certain  deferred  annuities  that are
registered  with the  Securities and Exchange  Commission,  including  variable
annuities  and  fixed  interest rate  annuities  that  include  a market  value
adjustment  feature;  b) certain other fixed  deferred  annuities  that are not
registered with the Securities and Exchange Commission; c) non-registered group
variable  annuities designed as funding vehicles for various types of qualified
retirement plans; and d) fixed and adjustable immediate annuities.

In May 1999, the Company  introduced  a benefit  feature to all of its variable
annuity products which provides certain benefits if the  policyowner's  account
value has not reached a "target value" on its tenth  anniversary. At the option
of the policyowner, the benefit will be distributed in the form of an annual or,
if annuitization is selected, a lump-sum credit to the contractowner's account.

The Company also offers  single  premium and  flexible  premium  variable  life
insurance products  and  a  term  life  insurance  product  in  support  of  an
affiliate's mutual fund products.


<PAGE>


Results of Operations

Annuity and life insurance  sales volume for the six months ended June 30, 2000
and 1999 was $5,080,947,000 and  $3,260,180,000,  respectively,  an increase of
56%. This increase was the result of favorable  market  conditions in the first
three months of 2000 combined with the continued development of new products and
new product features and business relationships with top producers. The Company
also attributes  much of its sales growth over the past several quarters to the
strong  performance of the underlying  mutual funds, which support the Separate
Account assets.

Sales of annuity and life  insurance products  for the three month period ended
June 30, 2000 were $2,358,000,000 as compared with $2,723,000,000 for the three
months ended March 31, 2000, a decrease of 13%. The Company  believes that this
decrease was largely the result of recent volatility in equity markets.

As a result of the growth in sales and assets  under  management, contractowner
fees and charges and charges generated from transfer agency-type and investment
support activities increased $108,167,000 or 66% over the six months ended June
30, 1999.  The  increase in fee income for the six month  period ended June 30,
1999 from the six month period ended June 30, 1998 was 52%.

The increase in premium income of $1,351,000 from the six months ended June 30,
1999  was  due to  issuance  of  supplementary contracts.  Sales  of  immediate
annuities with life  contingencies and certain life insurance products have been
minimal during both 2000 and 1999.

Annuity  benefits  relate to annuity contracts with mortality  risks,  such as,
immediate annuity contracts with life contingencies and supplementary contracts
with  life  contingencies.  Due to the age of these  policies  in force and the
relative insignificance of these products to the Company's overall portfolio of
products, fluctuations  in these  benefits  were of marginal  importance to the
Company's total operations.

The change in annuity policy reserves  includes  changes in reserves related to
annuity contracts  with  mortality  risks as well as the  Company's  guaranteed
minimum death benefit("GMDB") liability. During the second quarter of 1999, the
Company's  agreement to reinsure substantially  all of its exposure on the GMDB
was terminated and the business was recaptured,  as the reinsurer had announced
its intention to exit this market. The increase in reserves resulting from this
change  was  offset by a  decrease in  reserves  associated  with the change in
reserve methodology on the GMDB. The new reserve methodology  complies with the
National  Association of Insurance  Commissioners Actuarial Guideline XXXIV. In
the latter half of 1999,  the Company instituted a hedge  program to manage the
market risk and reserve fluctuations associated with the GMDB liability through
the use of equity put options. The Company is currently continuing this program
while evaluating alternative hedging strategies.

The reinsurance  premium  associated with the GMDB exposure was based on levels
of assets under management. Due to increased sales and account growth, this cost
had increased in recent years and reached $2,955,000 for the six months of 1999
before the treaty was terminated.

Return  credited to  contractowners consists of revenues on the  variable  and
market value  adjusted  annuities and variable  life  insurance,  offset by the
benefit payments and changes in reserves required on this business. Through the
first six months of 2000 and 1999, the Separate  Account  investment returns on
the market value adjusted annuities exceeded the expected returns as calculated
in the reserves. Despite the positive returns in the second quarter of 2000, the
return credited to  contractowners increased as a result of the amortization of
unearned target value credits.


<PAGE>


Underwriting, acquisition and other insurance expenses for the six months ended
June 30, 2000 and 1999 were as follows:

           (in thousands)                   2000          1999         Change

 Commissions and general expenses         $396,860      $257,532      $139,328
 Net capitalization of deferred
 acquisition costs                        (232,435)     (163,591)      (68,844)

 Underwriting, acquisition and other
 insurance expenses                       $164,425      $ 93,941      $ 70,484


Commissions,  general  operating  expenses and the net deferral of  acquisition
costs have all  increased in 2000, due largely to record  sales.  Current sales
trends  have  resulted  in a shift to asset based commission  agreements.  This
coupled with  increased  asset  levels from increased  sales and equity  market
appreciation have led to a 54% increase in commissions and general expenses.

Interest expense increased $27,002,000 or 92% over the six months ended June 30,
2000 as a result of additional financing  transactions,  which consisted of the
sale of  future  fees to ASI, through a trust  ("securitization  transactions")
initiated  throughout 1999 and 2000,  offset by a  decrease  in  surplus  notes
outstanding.  Surplus notes as of June 30, 2000 and  December  31, 1999 totaled
$179,000,000.

The effective income tax rate for the six months ended June 30, 2000,  and 1999
was 28% and 27%, respectively.  The effective  rate is lower than the corporate
rate of 35% due to permanent differences,  with the most significant item being
the dividend received  deduction. Management believes that based on the taxable
income  produced  in 1999 and the first  six  months  of  2000,  as well as the
continued growth in annuity sales, the Company will produce sufficient  taxable
income in the future to realize its deferred tax assets.

The Company  generated net income after tax of $39,109,000 and $29,767,000 for
the six months ended June 30, 2000 and 1999, respectively, as a result of strong
sales growth and favorable market  conditions. The Company  considers Mexico an
emerging  market  and has invested  in the  Skandia  Vida  operations  with the
expectation of generating  profits from  long-term  savings  products in future
years. As such, Skandia Vida has generated net losses of $552,000 and $1,220,000
during the same time periods, respectively.

Total assets grew  $3,185,985,000 or 10% since December 31, 1999 as a result of
the  substantial  sales volume and market performance  of the separate  account
assets. The net sales growth also drove increases in deferred acquisition costs,
as well as fixed  maturity investments  held in support of the  Company's  risk
based  capital  requirements. Liabilities  grew  $3,144,652,000  or 10%,  since
December 31, 1999 as a result of the reserve  increases  required based on sales
activity  along with the sale of future fees and charges  during these  periods.
These sales of future fees and charges to ASI are needed to fund the acquisition
costs of the Company's variable annuity and life insurance business.

Liquidity and Capital Resources

The Company's liquidity  requirement was met by cash from insurance operations,
investment activities, borrowings from ASI and the sale of rights to future fees
and charges to ASI.

The majority of the operating  cash outflow  resulted from the sale of variable
annuity and  variable  life  products  which carry a contingent  deferred  sales
charge.  This type of product causes a temporary cash strain in that 100% of the
proceeds are invested in separate accounts supporting the product leaving a cash
(but not capital)  strain caused by the  acquisition  cost for the new business.
This cash strain  required the Company to look beyond the cash made available by
insurance  operations and investments of the Company to financing in the form of
surplus notes, capital contributions,  the sale of certain rights to future fees
and charges as well as modified coinsurance reinsurance arrangements:

   o During  the  first  six  months of 2000 and  1999,  the  Company  received
     $1,600,000 and $1,690,000, respectively, from ASI to support its
     investment in Skandia Vida.

   o Funds received from new securitization   transactions   amounted  to
     $169,459,000  and  $120,632,000  for the  first  six  months  of 2000 and
     1999, respectively.

   o The Company continues to extend its reinsurance  agreements for new blocks
     of business. The reinsurance  agreements are modified coinsurance
     arrangements where the reinsurer shares in the experience of a specific
     book of business.

The  Company  expects  the  continued  use of  reinsurance  and securitization
transactions to fund the cash strain  anticipated from acquisition costs on the
coming years' sales volume.

The Company has long-term surplus notes and short-term  borrowings with ASI. No
dividends have been paid to ASI.

The National Association of Insurance Commissioners ("NAIC") requires insurance
companies to report information  regarding  minimum Risk Based Capital  ("RBC")
requirements. These requirements are intended to allow insurance  regulators to
identify  companies which  may need  regulatory  attention.  The RBC  model law
requires that insurance companies apply various  factors to asset,  premium and
reserve items, all of which have inherent risks. The formula includes components
for asset risk, insurance risk, interest risk and business risk. The Company has
complied  with the  NAIC's RBC reporting  requirements  and has total  adjusted
capital well above required capital.

Year 2000 Compliance

The Company's  computer support is provided by its affiliate,  American Skandia
Information  Services and  Technology  Corporation,  which also  provides  such
support for the Company's affiliated broker-dealer, American Skandia Marketing,
Incorporated and the Company's  affiliated  investment advisory firm,  American
Skandia  Investment  Services,  Incorporated.  Because of  the  nature  of  the
Company's  business,  any  assessment of the  potential impact of the Year 2000
issues on the Company must be an  assessment  of the potential  impact of these
issues  on all  these  companies,  which  are  referred to below  as  "American
Skandia".

The  Company  experienced  no  significant  errors or disruptions  in  computer
service, interfaces with computer systems of investment managers, sub-advisors,
third  party  administrators,  vendors and other  business partners on or after
January 1, 2000.

American Skandia engaged external information  technology specialists to review
its operating systems and internally developed software.

American  Skandia  continues  to  review  new  and  existing  systems  and  has
contingency plans in place as part of its Business  Continuity  Plan. This plan
involves virtually  all aspects of the business and will continue to be a focus
of management beyond the Year 2000 event.


<PAGE>


                   AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
         (a wholly-owned subsidiary of Skandia Insurance Company Ltd.)


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no  material changes to the  Company's  market  risk during the
first half of 2000. The Company has provided a discussion of its market risks in
Item 7A of Part II of the December 31, 1999 Form 10-K.


PART II.  OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)  See Exhibit Index
         (b)  None


<PAGE>


                                    SIGNATURE

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                              American Skandia Life
                              Assurance Corporation
                                  (Registrant)


                           by: /s/Thomas M. Mazzaferro
                              Thomas M. Mazzaferro
                          Executive Vice President and
                             Chief Financial Officer


August 4, 2000


<PAGE>


                                    SIGNATURE

Pursuant to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                              American Skandia Life
                              Assurance Corporation
                                  (Registrant)


                            by: _____________________
                              Thomas M. Mazzaferro
                          Executive Vice President and
                             Chief Financial Officer


August 4, 2000



<PAGE>


                                  EXHIBIT INDEX




  Exhibit
   Number                 Description                                 Location


    (2)       Plan of acquisition, reorganization,
              arrangement, liquidation or succession                    None

    (4)       Instruments defining the rights of
              security holders, including indentures                    None

   (10)       Material Contracts                                        None

   (11)       Statement Re:  Computation of per share
              earnings                                                  None

   (15)       Letter Re:  Unaudited interim financial
              information                                               None

   (18)       Letter Re:  Change in accounting
              principles                                                None

   (19)       Report furnished to security holders                      None

   (22)       Published report regarding matters
              submitted to vote of security holders                     None

   (23)       Consents of experts and counsel                           None

   (24)       Power of attorney                                         None

   (99)       Additional exhibits                                       None