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 March 31, 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 May 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 -
       March 31, 2000 (unaudited)
       and December 31, 1999                                                3

    Consolidated Statements of Income (unaudited) -
       Three months ended March 31, 2000
       and March 31, 1999                                                   4

    Consolidated Statements of Shareholder's Equity -
       Three months ended March 31, 2000 (unaudited)
       and year ended December 31, 1999                                     5

   Consolidated  Statements  of Cash  Flows  (unaudited)  -
      Three months ended March 31, 2000
      and March 31, 1999                                                    6

    Notes to Unaudited Consolidated Financial Statements                    7


  Item 2.  Management's Discussion and Analysis of
              Financial Condition and Results of Operations -
              Three months ended March 31, 2000                            10


  Item 3.  Quantitative and Qualitative Disclosures of Market Risk         14



PART II.  OTHER INFORMATION:

  Item 6.  Exhibits and Reports on Form 8-K                                14

           Signatures                                                      15

           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>
                                                                        March 31,                 December 31,
                                                                          2000                        1999
                                                                     ---------------            ----------------
                                                                       (unaudited)
ASSETS


Investments:
  Fixed maturities - at amortized cost                                $       3,247             $         3,360
  Fixed maturities - at fair value                                          199,654                     198,165
  Investment in mutual funds - at fair value                                 22,912                      16,404
  Derivative instruments                                                        997                         189
  Policy loans                                                                1,440                       1,270
                                                                      --------------              --------------

    Total investments                                                       228,250                     219,388

Cash and cash equivalents                                                   128,717                      89,212
Accrued investment income                                                     3,251                       4,054
Deferred acquisition costs                                                1,222,855                   1,087,705
Reinsurance receivable                                                        7,273                       4,062
Income tax receivable - deferred                                             46,059                      51,726
State insurance licenses                                                      4,225                       4,263
Fixed assets                                                                  4,118                       3,305
Other assets                                                                  5,014                       4,533
Separate account assets                                                  33,386,262                  29,381,166
                                                                     ---------------            ----------------

  Total assets                                                       $   35,036,024             $    30,849,414
                                                                     ===============            ================


LIABILITIES AND SHAREHOLDER'S EQUITY

Liabilities:
Reserves for future insurance policies and contracts                 $       24,317             $        41,127
Drafts outstanding                                                           52,790                      51,059
Accounts payable and accrued expenses                                       178,950                     158,590
Income tax payable                                                            6,112                      24,268
Payable to affiliates                                                        84,393                      68,736
Future fees payable to parent                                               729,313                     576,034
Short-term borrowing                                                         10,000                      10,000
Surplus notes                                                               179,000                     179,000
Separate account liabilities                                             33,386,262                  29,381,166
                                                                     ---------------            ----------------

  Total Liabilities                                                      34,651,137                  30,489,980
                                                                     ---------------            ----------------

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                                                           165,343                     141,162
Accumulated other comprehensive income                                         (435)                       (107)
                                                                     ---------------            ----------------

    Total Shareholder's equity                                              384,887                     359,434
                                                                     ---------------            ----------------

    Total liabilities and shareholder's equity                       $   35,036,024             $    30,849,414
                                                                     ===============            ================
</TABLE>

                See notes to 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>
<S>                                                                <C>                      <C>

                                                                          Three Months Ended March 31,
                                                                         2000                     1999
                                                                    --------------           --------------

REVENUES

Annuity and life insurance charges and fees                         $     104,833            $      60,418
Fee income                                                                 31,143                   16,977
Net investment income                                                       2,876                    2,654
Premium income                                                                603                      749
Net realized capital gains                                                    729                      295
Other                                                                         676                      365
                                                                    --------------           --------------

  Total revenues                                                          140,860                   81,458
                                                                    --------------           --------------


EXPENSES

Benefits:
  Annuity and life insurance benefits                                         133                      221
  Change in annuity and life insurance policy reserves                      2,624                      757
  Cost of minimum death benefit reinsurance                                     -                    1,749
  Return credited to contractowners                                        (2,676)                  (4,226)
                                                                    --------------           --------------

                                                                               81                   (1,499)

Expenses:
  Underwriting, acquisition and other insurance
    expenses                                                               76,292                   51,878
  Interest expense                                                         30,268                   13,825
                                                                    --------------           --------------

                                                                          106,560                   65,703
                                                                    --------------           --------------

  Total benefits and expenses                                             106,641                   64,204
                                                                    --------------           --------------

    Income from operations before income tax                               34,219                   17,254

      Income tax expense                                                   10,038                    3,844
                                                                    --------------           --------------

        Net income                                                  $      24,181             $     13,410
                                                                    ==============           ==============
</TABLE>

                See notes to 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>
<S>                                                     <C>                    <C>

                                                            March 31,             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                                        1,600                  36,490
                                                         ---------------       -----------------

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

Retained earnings:
  Beginning balance                                             141,162                  64,993
  Net income                                                     24,181                  76,169
                                                         ---------------       -----------------

    Ending balance                                              165,343                 141,162
                                                         ---------------       -----------------

Accumulated other comprehensive income:
  Beginning balance                                                (107)                  3,535
  Other comprehensive income                                       (328)                 (3,642)
                                                         ---------------       -----------------

    Ending Balance                                                 (435)                   (107)
                                                         ---------------       -----------------

      Total shareholder's equity                         $      384,887        $        359,434
                                                         ===============       =================

                See notes to consolidated financial statements.
</TABLE>

<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>
<S>                                                    <C>                  <C>

                                                           Three Months Ended March 31,
                                                             2000               1999
                                                        -------------       -------------

Cash flow from operating activities:

  Net income                                            $     24,181        $     13,410
  Adjustments to reconcile net income to net
    cash used in operating activities:
      Amortization and depreciation                            1,597                  68
      Deferred tax expense/(benefit)                           5,844              (1,782)
      Increase in policy reserves                              2,585               5,307
      Increase in payable to affiliates                       15,657              53,110
      Decrease in income tax payable                         (18,156)                (48)
      Increase in other assets                                  (481)               (502)
      Decrease in accrued investment income                      803                 339
      Increase in reinsurance receivable                      (3,211)             (4,037)
      Increase in deferred acquisition costs                (135,150)            (64,467)
      Increase in accounts payable and accrued expenses       20,360                 323
      Increase in drafts outstanding                           1,731               1,242
      Change in foreign currency translation, net                 74                 204
      Net realized capital gain                                 (729)               (295)
                                                        -------------       -------------

        Net cash provided by/(used in)
            operating activities                             (84,895)              2,872
                                                        -------------       -------------

Cash flow from investing activites:

      Purchase of fixed maturity investments                  (2,529)                  -
      Proceeds from sale and maturity of fixed
        maturity investments                                     110                   -
      Purchase of derivatives                                 (2,274)                  -
      Purchase of shares in mutual funds                      (8,048)            (12,491)
      Proceeds from sale of shares in mutual funds             2,691              11,458
      Purchase of fixed assets                                  (864)                  -
      Increase in policy loans                                  (170)                (40)
                                                        -------------       -------------

        Net cash used in investing activities                (11,084)             (1,073)
                                                        -------------       -------------

Cash flow from financing activities:

      Capital contribution from parent                         1,600               1,200
      Increase/(decrease) in future fees
        payable to parent, net                               153,279             (12,099)
      Net withdrawals from contractowner accounts            (19,395)              1,325
                                                        -------------       -------------

        Net cash provided by/(used in)
           financing activities                              135,484              (9,574)
                                                        -------------       -------------

          Net increase/(decrease) in cash and cash
            equivalents                                       39,505              (7,775)

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

            Cash and cash equivalents at end of period  $    128,717              69,750
                                                        =============       =============

     Income taxes paid                                  $     10,037               4,901
                                                        =============       =============

      Interest paid                                     $     28,146              17,361
                                                        =============       =============
</TABLE>


                See notes to consolidated financial statements.
<PAGE>


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

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                                 March 31, 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 three-month period ended March 31,
    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)

                                 March 31, 2000

4.  COMPREHENSIVE INCOME

    The  components  of  comprehensive  income,  net of tax,  for the three
    months ended March 31, 2000 and 1999 were as follows:

             (in thousands)                         2000              1999
                                                  --------          --------

    Net income                                     $24,181          $13,410
    Other comprehensive income:
      Net Unrealized investment losses on

          available for sale securities               (376)          (2,024)

      Foreign currency translation                      48              137
                                                  ---------         --------

    Other comprehensive income                        (328)          (1,887)
                                                  ---------         --------

    Comprehensive income                           $23,853          $11,523
                                                  =========         ========

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

             (in thousands)                         2000              1999
                                                  --------          --------

    Unrealized investment gains/(losses)          ($  631)          ($ 255)
    Foreign currency translation                      196              148
                                                  --------          --------

    Accumulated other comprehensive income        ($  435)          ($ 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  $6,099,000  as of March  31,  2000 and
    $4,592,000 as of December 31, 1999 and has generated losses of $167,000
    and  $565,000  for the three  months  ended  March  31,  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)

                                 March 31, 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 Agreements, 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 sales 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 values 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
                                                       ========




<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

                        Three months ended March 31, 2000

Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations  should be read in  conjunction  with the March  31,  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  largest  provider  of  variable  annuity  contracts  for  the
individual  market in the United States  during the first  quarter of 2000,  and
ranked third in 1999,  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 three  months ended March 31,
2000 and 1999 was $2,723,085,000 and $1,429,826,000,  respectively,  an increase
of  90%.  This  increase  was  the  result  of  innovative  product  development
activities,   favorable   market   conditions,   the   development  of  business
relationships  with  and  the  retention  of  top  producers,   and  the  strong
performance of the underlying  mutual funds,  which support the Separate Account
assets.

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  $58,581,000  or 76% from the three  months ended
March 31,  2000.  The  increase in fee income for the three month  period  ended
March 31, 1999 from the three month period ended March 31, 1998 was 54%.

Premium income represents  premiums earned on sales of immediate  annuities with
life contingencies,  supplementary contracts with life contingencies and certain
life  insurance  products.  There  have been  minimal  sales of these  ancillary
products 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 policies 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  $1,749,000 for the first three 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 change in reserves required on this business.  Market value
adjusted  annuity  activity has the largest impact on this benefit.  Through the
first three months of 2000 and 1999, the Separate Account  investment returns on
these contracts exceeded the expected returns calculated in the reserves.

 Underwriting,  acquisition  and other  insurance  expenses for the three months
ended March 31, 2000 and 1999 were as follows:
<TABLE>
<CAPTION>
<S>     <C>                                            <C>                 <C>                <C>

                       (in thousands)                       2000                 1999           Change
                                                            ----                 ----           ------

         Commissions and general expenses                $216,055             $116,345          $99,710
         Net capitalization of deferred
         acquisition costs                               (139,763)             (64,467)         (75,296)
                                                        ----------           -----------        --------

         Underwriting, acquisition and other
         insurance expenses                              $ 76,292             $ 51,878          $ 24,414
                                                         ========             ========          ========
</TABLE>


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 an 86% increase in commissions and general expenses.

Interest expense increased $16,443,000 or 119% over the three months ended March
31, 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 March 31, 2000 and  December 31, 1999 totaled
$179,000,000.

<PAGE>

The  effective  income tax rate for the three months  ended March 31, 2000,  and
1999  was 29% and  22%,  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 three 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 $24,181,000  and $13,410,000 for
the three  months  ended March 31, 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 $167,000 and $565,000
during the same time periods, respectively.

 Total assets grew  $4,185,626,000 or 14% since December 31, 1999 as a result of
the substantial  sales volume and market growth of the separate  account assets.
The sales and market 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  $4,160,173,000  or 14%,  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  three  months of 2000 and 1999,  the  Company  received
     $1,600,000 and $1,200,000,  respectively,  from ASI to support its
     investment in Skandia Vida.

o    Funds   received   from  new   securitization   transactions   amounted  to
     $169,459,000  for the three months ended March 31, 2000. There were no such
     transactions in the first quarter of 1999.

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.

<PAGE>

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
three months ended March 31, 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



May 11, 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