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 September 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 November 14, 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 -
              September 30, 2000 (unaudited)
              and December 31, 1999                                         3

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

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

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

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

           Notes to Unaudited Consolidated Financial Statements             8


  Item 2.  Management's Discussion and Analysis of
              Financial Condition and Results of Operations -
              Nine months ended September 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.)

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

<S>                                                                 <C>                         <C>
                                                                      September 30,               December 31,
                                                                          2000                        1999
                                                                    ----------------            ----------------
                                                                       (unaudited)
ASSETS

Investments:

  Fixed maturities - at amortized cost                              $             -             $         3,360
  Fixed maturities - at fair value                                          205,495                     198,165
  Equity Securities - at fair value                                          23,215                      16,404
  Derivative instruments                                                        569                         189
  Policy loans                                                                2,748                       1,270
                                                                      --------------              --------------

    Total investments                                                       232,027                     219,388

Cash and cash equivalents                                                   111,257                      89,212
Accrued investment income                                                     3,963                       4,054
Deferred acquisition costs                                                1,376,831                   1,087,705
Reinsurance receivable                                                        2,672                       4,062
Income tax receivable - deferred                                             36,085                      51,726
Income tax recoverable                                                        1,975                           -
State insurance licenses                                                      4,150                       4,263
Fixed assets                                                                  6,323                       3,305
Other assets                                                                 90,382                      36,698
Separate account assets                                                  33,024,812                  29,381,166
                                                                    ----------------            ----------------

  Total assets                                                      $    34,890,477             $    30,881,579
                                                                    ================            ================


LIABILITIES AND SHAREHOLDER'S EQUITY

Liabilities:
Reserves for future insurance policy and contract benefits          $        93,928             $        73,292
Drafts outstanding                                                           52,040                      51,059
Accounts payable and accrued expenses                                       138,703                     158,590
Income tax payable                                                                -                      24,268
Payable to affiliates                                                       206,459                      68,736
Future fees payable to parent                                               771,529                     576,034
Short-term borrowing                                                         10,000                      10,000
Surplus notes                                                               179,000                     179,000
Separate account liabilities                                             33,024,812                  29,381,166
                                                                    ----------------            ----------------

  Total Liabilities                                                      34,476,471                  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                                                  218,329                     215,879
Retained earnings                                                           190,841                     141,162
Accumulated other comprehensive income (loss)                                 2,336                        (107)
                                                                    ----------------            ----------------

    Total Shareholder's equity                                              414,006                     359,434
                                                                    ----------------            ----------------

    Total liabilities and shareholder's equity                      $    34,890,477             $    30,881,579
                                                                    ================            ================
</TABLE>

           See notes to unaudited consolidated financial statements.
                                        3


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

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

<S>                                                                <C>                       <C>
                                                                        Nine Months Ended September 30,
                                                                         2000                     1999
                                                                    -------------            --------------

REVENUES

Annuity and life insurance charges and fees                         $    325,052             $     204,103
Fee income                                                                95,130                    58,184
Net investment income                                                     10,690                     8,231
Premium income                                                             7,804                     1,236
Net realized capital gains (losses)                                       (1,565)                      526
Other                                                                      1,610                     1,279
                                                                    -------------            --------------

  Total revenues                                                         438,721                   273,559
                                                                    -------------            --------------


EXPENSES

Benefits:
  Annuity and life insurance benefits                                        533                       480
  Change in annuity and life insurance policy reserves                    12,024                     2,519
  Cost of minimum death benefit reinsurance                                  -                       2,946
  Return credited to contractowners                                       11,085                    (1,208)
                                                                    -------------            --------------

                                                                          23,642                     4,737

Expenses:
  Underwriting, acquisition and other insurance
    expenses                                                             262,626                   152,264
  Interest expense                                                        84,344                    46,505
                                                                    -------------            --------------

                                                                         346,970                   198,769
                                                                    -------------            --------------

  Total benefits and expenses                                            370,612                   203,506
                                                                    -------------            --------------

    Income from operations before income tax                              68,109                    70,053

      Income tax expense                                                  18,430                    18,884
                                                                    -------------            --------------

        Net income                                                  $     49,679              $     51,169
                                                                    =============            ==============
</TABLE>
            See notes to unaudited consolidated financial statements.
                                        4


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

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

                                                                        Three Months Ended September 30,
<S>                                                                      <C>                      <C>
                                                                         2000                     1999
                                                                    -------------            --------------

REVENUES

Annuity and life insurance charges and fees                         $    113,844             $      75,296
Fee income                                                                33,074                    21,894
Net investment income                                                      4,186                     2,735
Premium income                                                             5,545                       328
Net realized capital gains (losses)                                         (858)                      206
Other                                                                        492                       437
                                                                    -------------            --------------

  Total revenues                                                         156,283                   100,896
                                                                    -------------            --------------


EXPENSES

Benefits:
  Annuity and life insurance benefits                                        255                       100
  Change in annuity and life insurance policy reserves                     2,519                    (6,759)
  Cost of minimum death benefit reinsurance                                  -                          (9)
  Return credited to contractowners                                       13,447                     2,654
                                                                    -------------            --------------

                                                                          16,221                    (4,014)

Expenses:
  Underwriting, acquisition and other insurance
    expenses                                                              98,201                    58,323
  Interest expense                                                        28,124                    17,288
                                                                    -------------            --------------

                                                                         126,325                    75,611
                                                                    -------------            --------------

  Total benefits and expenses                                            142,546                    71,597
                                                                    -------------            --------------

    Income from operations before income tax                              13,737                    29,299

      Income tax expense                                                   3,167                     7,898
                                                                    -------------            --------------

        Net income                                                  $     10,570              $     21,401
                                                                    =============            ==============
</TABLE>
            See notes to unaudited consolidated financial statements.
                                       5



<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>

<S>                                                      <C>                     <C>
                                                             September 30,         December 31,
                                                               2000                  1999
                                                         ---------------      ------------------
                                                           (unaudited)

Common stock:
  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                                        2,450                  36,490
                                                         ---------------      ------------------

    Ending balance                                              218,329                 215,879
                                                         ---------------      ------------------

Retained earnings:
  Beginning balance                                             141,162                  64,993
  Net income                                                     49,679                  76,169
                                                         ---------------      ------------------

    Ending balance                                              190,841                 141,162
                                                         ---------------      ------------------

Accumulated other comprehensive income (loss):

  Beginning balance                                                (107)                  3,535
  Other comprehensive income (loss)                               2,443                  (3,642)
                                                         ---------------      ------------------

    Ending Balance                                                2,336                    (107)
                                                         ---------------      ------------------

      Total shareholder's equity                         $      414,006       $         359,434
                                                         ===============      ==================
</TABLE>
            See notes to unaudited consolidated financial statements.
                                       6



<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>

                                                                    Nine Months Ended September 30,
<S>                                                              <C>                <C>
                                                                       2000               1999
                                                                  -------------       -------------

Cash flow from operating activities:

  Net income                                                      $     49,679              51,169
  Adjustments to reconcile net income to net
    cash used in operating activities:
      Amortization and depreciation                                      2,790                 199
      Deferred tax expense                                              14,325               5,200
      Increase in policy reserves                                       12,587               6,106
      Increase in payable to affiliates                                137,723             115,248
      Change in income tax payable/recoverable                         (26,243)             (8,911)
      Increase in other assets                                         (53,684)             (3,596)
      Decrease/(increase) in accrued investment income                      91                 (77)
      Decrease/(increase) in reinsurance receivable                      1,390              (1,393)
      Net increase in deferred acquisition costs                      (289,126)           (246,261)
      (Decrease)/increase in accounts payable and accrued expenses     (19,887)             26,777
      Increase in drafts outstanding                                       981               8,200
      Change in foreign currency translation, net                          (78)                771
      Unrealized loss on derivative instruments                              -                 178
      Net realized capital (gain)/loss                                   1,565                (526)
                                                                  -------------       -------------

        Net cash used in operating activities                         (167,887)            (46,916)
                                                                  -------------       -------------

Cash flow from investing activites:

      Purchase of fixed maturity investments                          (283,490)            (36,517)
      Proceeds from sale and maturity of fixed
        maturity investments                                           283,586              33,561
      Purchase of derivatives                                           (3,277)             (4,974)
      Purchase of shares in mutual funds                               (12,615)            (15,564)
      Proceeds from sale of shares in mutual funds                       4,063              14,229
      Purchase of fixed assets                                          (2,851)                  -
      Purchase of short term investments                                     -             (30,697)
      Increase in policy loans                                          (1,478)               (472)
                                                                  -------------       -------------

        Net cash used in investing activities                          (16,062)            (40,434)
                                                                  -------------       -------------

Cash flow from financing activities:

      Capital contribution from parent                                   2,450              11,690
      Increase in future fees payable to parent, net                   195,495              79,704
      Net deposits to/(withdrawals from) contractowner accounts          8,049             (13,254)
                                                                  -------------       -------------

        Net cash provided by financing activities                      205,994              78,140
                                                                  -------------       -------------

          Net increase/(decrease) in cash and cash
            equivalents                                                 22,045              (9,210)

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

            Cash and cash equivalents at end of period            $    111,257        $     68,315
                                                                  =============       =============

     Income taxes paid                                            $     30,349        $     16,867
                                                                  =============       =============

      Interest paid                                               $     85,902        $     45,434
                                                                  =============       =============

</TABLE>
            See notes to unaudited consolidated financial statements.
                                       7


<PAGE>


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

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                               September 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 nine month period ended September
    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  No.  133  ("FAS  133"),
    "Accounting  for Derivative  Instruments and Hedging  Activities."  The
    FASB has  amended  FAS 133 with  the  issuance  of  Statement  No.  137
    "Accounting for Derivative Instruments and Hedging  Activities-Deferral
    of the Effective  Date of FASB Statement No. 133" and Statement No. 138
    "Accounting  for Certain  Derivative  Instruments  and Certain  Hedging
    Activities." FAS 133 is effective for fiscal years beginning after June
    15, 2000. The Company is currently  evaluating the potential  impact of
    this statement on its financial position and results of operations.

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 yet been significant  enough to warrant full segment
    disclosures as required by FAS 131,  "Disclosures  about Segments of an
    Enterprise and Related Information."

                                       8
<PAGE>


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

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (continued)

                               September 30, 2000



4.  COMPREHENSIVE INCOME

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

                  (in thousands)                        2000             1999
                                                      -------          -------
    Net income                                        $49,679          $51,169
    Other comprehensive income (loss):
      Net Unrealized investment gain/(loss) on
        available for sale securities                   2,493           (5,054)

      Foreign currency translation                        (50)             501
                                                      -------          -------
    Other comprehensive income (loss)                   2,443           (4,553)
                                                      -------          -------
    Comprehensive income                              $52,122          $46,616
                                                      =======          =======

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

                  (in thousands)                        2000             1999
                                                      --------        ---------
    Unrealized investment gains/(losses)              $  2,238        ($   255)
    Foreign currency translation                            98             148
                                                      --------        ---------
    Accumulated other comprehensive income (loss)     $  2,336        ($   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 $5,554,000 as of September 30, 2000 and
    $4,592,000  as of  December  31,  1999  and  has  generated  losses  of
    $1,410,000 and $1,747,000 for the nine months ended  September 30, 2000
    and 1999, respectively.

                                       9
<PAGE>


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

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (continued)

                               September 30, 2000


6.  FUTURE FEES PAYABLE TO PARENT

    The Company  regularly  transfers certain rights to receive future fees
    and  charges  expected  to be  realized  on  the  variable  portion  of
    designated blocks of deferred annuity contracts to its Parent, American
    Skandia,  Inc.  ("ASI").  In connection with these  transactions,  ASI,
    through a trust,  issues  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  Agreements,  the  rights  transferred
    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  does not  transfer the rights to
    receive  future fees and charges after the  expiration of the surrender
    charge period.

    The  proceeds for each  transfer  are  determined  by  calculating  the
    present value of future fees and charges expected to be realized on the
    designated  contracts.  The proceeds  are  recorded as a liability  and
    amortized over the remaining  surrender charge period of the designated
    contracts using the interest method.

    The following transactions were recorded in 2000:
<TABLE>
<CAPTION>

<S>                                                                   <C>
       Effective       Contract Issue     Present Value(1)       Discount
          Date              Date           (in thousands)          Rate
    --------------    ----------------    ----------------    --------------
    March 22, 2000    8/1/99 - 1/31/00        $169,459             7.50%
    July 18, 2000     2/1/00 - 4/30/00          92,399             7.25
                                              ========
                                              $261,858

    (1) Calculated as of the effective date.
</TABLE>

    As of September 30, 2000, the expected  payments of future fees payable
    to ASI under these transactions are as follows:

                                 (in thousands)
                   Period Ending
                    December 31,                  Amount
                       2000                     $   6,563
                       2001                        28,207
                       2002                        31,535
                       2003                        35,143
                       2004                        39,053
                       2005                        43,287
                       2006                        44,794
                       2007                        26,836
                       2008                         2,091
                                                 ========
                      Total                      $257,509





                                       10

<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

                      Nine months ended September 30, 2000


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

Management's Discussion  and  Analysis of  Financial  Condition  and Results of
Operations contains certain forward-looking  statements pursuant to the Private
Securities Litigation Reform Act of 1995. These forward-looking  statements are
based on estimates and assumptions that involve certain risks and uncertainties,
therefore  actual  results could differ materially due to factors not currently
known. These factors include significant changes in financial markets and other
economic and business conditions, state and federal legislation and regulation,
ownership and competition.

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 is  primarily  in the  business  of issuing  long-term  savings and
retirement products to  individuals,  groups and qualified  pension plans.  The
Company is the third largest  provider of variable  annuity  contracts  for the
individual  market in the  United  States  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, variable and adjustable immediate annuities.

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.

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'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.

                                       11
<PAGE>


Results of Operations
---------------------

Annuity and life insurance sales volume for the nine months ended September 30,
2000 and 1999 was $6,864,044,000 and $4,987,926,000 respectively, an increase of
38%.  This  increase was the result of favorable  market conditions  and strong
performance of the underlying  mutual funds, particularly in the fourth quarter
of 1999 and first quarter of 2000. Sales have declined  since the first quarter
of 2000 due to the volatility in the financial markets.

Contractowner fees and charges and charges generated from transfer  agency-type
and investment support activities  increased  $157,895,000 or 60% for the first
nine months of 2000 compared to the year ago period as a result of the growth in
assets under management.

The  increase  in premium  income  of  $6,568,000  from the nine  months  ended
September  30, 1999 was due to growth in the  issuance  of  variable  immediate
annuities and  supplementary  contracts with life contingencies.  Supplementary
contracts  sales growth was  consistent with the increase in  annuitization  of
business  sold in  previous  years.  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
related  market risk  utilizing equity put  options.  The Company is  currently
continuing this program while evaluating alternative hedging strategies.

Annuity  policy  reserves  increased $9,505,000  over  the nine  months  ended
September 30, 1999 as a result of an increase in the required  GMDB reserve due
to the decreased  performance in the underlying funds in the past two quarters.
Because the hedge program is designed to insure against significant declines in
asset values that result from declines in certain equity  markets, there was no
offsetting income recorded against the GMDB liability during 2000.

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 $2,946,000 for the nine 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 nine months of 2000, the Separate Account investment returns on the market
value adjusted annuities  were less than the expected  returns as calculated in
the reserves, contributing to the significant increase in the return credited to
contractholders benefit. In addition, this benefit increased as a result of the
amortization of unearned target value credits.

                                       12
<PAGE>


Underwriting, acquisition  and other  insurance  expenses  for the nine months
ended September 30, 2000 and 1999 were as follows:
<TABLE>
<CAPTION>

<S>                                                         <C>                  <C>
                       (in thousands)                       2000                 1999           Change
                                                            ----                 ----           ------
         Commissions and purchase credits                $386,840             $277,357         $109,483
         General operating expenses                       161,838              126,294           35,544
         Net capitalization of deferred
           acquisition costs                             (286,052)            (251,387)         (34,665)
                                                         --------             --------         --------

         Underwriting, acquisition and other
           insurance expenses                            $262,626            $152,264          $110,362
                                                         ========            ========          ========
</TABLE>


Higher  sales and asset levels for the nine months  ended  September  30, 2000,
compared with the same period in 1999, led to a 40% increase in commissions and
purchase credits. General operating expenses increased 28% from a year ago as a
result of costs associated  with the  Company's  record sales over the past two
years as well as significant investments  made in new product  development  and
technology. In addition, the company incurred cost overruns in certain existing
product lines during the third quarter of 2000, due to the drop in sales.

Interest expense  increased  $37,839,000  or 81%  over the  nine  months  ended
September 30, 2000 primarily as a result of additional financing  transactions,
which  consisted  of the  transfer  of  future fees  to  ASI,  through  a trust
("securitization transactions") initiated throughout 1999 and 2000.

The effective income tax rate for the nine months ended September 30, 2000, and
1999 was 27%. 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 nine  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 $49,679,000  and $51,169,000 for
the nine months ended September 30, 2000 and 1999,  respectively.  The decrease
from 1999 was primarily due to the impact of the recent decline in the financial
markets as well as  increased  expenses  related  to new  product  development,
technology and  cost  overruns,   as  discussed   above.  The  Company  expects
technological and new product initiatives,  the expansion of the producer sales
base  and an  increase  in Separate  Account  investment  options  to  generate
increased levels of sales, which should result in higher levels of profit.

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 $1,410,000 and $1,747,000  for the nine months ended  September 30, 2000 and
1999, respectively.

Financial Condition

Total assets grew  $4,008,898,000 or 13% since December 31, 1999 as a result of
the substantial sales volume,  partially offset by the decline in the financial
markets.  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 $3,954,326,000 or 13%, since
December 31, 1999 as a result of the reserve  increases  required based on sales
activity along  with the  transfer  of future  fees and  charges  during  these
periods. These  transfers  of future fees and charges to ASI are needed to fund
the acquisition costs of the Company's variable annuity business.

                                       13
<PAGE>


Liquidity and Capital Resources
-------------------------------

The Company's liquidity  requirement was met by cash from insurance operations,
investment activities, borrowings from ASI and the transfer 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 transfer of certain rights to future
fees and charges as well as modified coinsurance reinsurance arrangements:

 o During the first nine months of 2000 and 1999, the Company received
   $2,450,000 and $1,690,000, respectively, from ASI to support its investment
   in Skandia Vida.

 o Funds received from new securitization transactions amounted to $261,858,000
   and $120,632,000 for the first nine 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.

                                       14
<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 nine months 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

                                       15
<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


November 14, 2000

                                       16
<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


November 14, 2000


                                       17
<PAGE>


                                  EXHIBIT INDEX



<TABLE>
<CAPTION>

      Exhibit

     <S>              <C>                 <C>                                     <C>
      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

</TABLE>

                                       18