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, 1999

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

                   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 10, 1999,  there were 25,000 shares of outstanding  common stock,
par value $80 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 Investment Holding  Corporation,  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, 1999 (unaudited)
                and December 31, 1998                                       3

             Consolidated Statements of Income (unaudited) -
                Nine months ended September 30, 1999
                and September 30, 1998                                      4

             Consolidated Statements of Income (unaudited) -
                Three months ended September 30, 1999
                and September 30, 1998                                      5

             Consolidated Statements of Shareolder's Equity
                Nine months ended September 30, 1999 (unaudited)
                and year ended December 31, 1998                            6

             Consolidated  Statements of Cash Flows (unaudited)
                Nine months ended September 30, 1999
                and September 30, 1998                                      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, 1999                       12


    Item 3.  Quantitative and Qualitative Disclosures about Market Risk    17


PART II.  OTHER INFORMATION:

    Item 6.  Exhibits and Reports on Form 8-K                              17

                  Signatures                                               18

                  Exhibit Index                                            20


<PAGE>




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

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                 (in thousands)

<TABLE>
<CAPTION>
                                                                        September 30,         December 31,
                                                                            1999                  1998
                                                                         (unaudited)
                                                                       ----------------      ---------------
ASSETS
Investments:

<S>                                                                  <C>                   <C>
   Fixed maturities - at amortized cost                              $          6,026      $         8,289
   Fixed maturities - at fair value                                           138,026              141,195
   Mutual funds                                                                10,599                8,210
   Short-term investments - at amortized cost                                  30,697                   -
   Derivative Instruments                                                       4,796                   -
   Policy loans                                                                 1,041                  569
                                                                       ----------------      ---------------

      Total investments                                              $        191,185      $       158,263
Cash and cash equivalents                                                      68,315               77,525
Accrued investment income                                                       2,957                2,880
Fixed assets                                                                      398                  328
Deferred acquisition costs                                                    967,768              721,507
Reinsurance receivable                                                          5,584                4,191
Receivable from affiliates                                                         -                 1,161
Income tax receivable - deferred                                               36,112               38,861
Income tax recoverable                                                          2,254                   -
State insurance licenses                                                        4,300                4,413
Other assets                                                                    7,270                3,744
Separate account assets                                                    22,796,470           17,835,400
                                                                       ----------------      ---------------
      Total assets                                                   $     24,082,613      $    18,848,273
                                                                       ================      ===============
LIABILITIES AND SHAREHOLDER'S EQUITY

LIABILITIES:

  Reserve for future contractowner benefits                          $         24,254      $        37,508
  Policy reserves                                                              31,651               25,545
  Drafts outstanding                                                           37,141               28,941
  Accounts payable and accrued expenses                                       118,605               91,827
  Income tax payable                                                               -                 6,657
  Payable to affiliates                                                       114,087                   -
  Future fees payable to parent                                               448,682              368,978
  Short-term borrowing                                                         10,000               10,000
  Surplus notes                                                               193,000              193,000
  Separate account liabilities                                             22,796,470           17,835,400
                                                                       ----------------      ---------------
      Total liabilities                                              $     23,773,890      $    18,597,856
                                                                       ----------------      ---------------
SHAREHOLDER'S EQUITY:
  Common stock, $80 par, 25,000 shares

   authorized, issued and outstanding                                $          2,000      $         2,000
  Additional paid-in capital                                                  191,579              179,889
  Retained earnings                                                           116,162               64,993
  Accumulated other comprehensive income (loss)                                (1,018)               3,535
                                                                       ----------------      ---------------

      Total shareholder's equity                                              308,723              250,417
                                                                       ----------------      ---------------

      Total liabilities and shareholder's equity                     $     24,082,613      $    18,848,273
                                                                       ================      ===============
</TABLE>

            See notes to unaudited consolidated financial statements.


<PAGE>


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

                        CONSOLIDATED STATEMENTS OF INCOME
                                   (unaudited)
                                 (in thousands)

<TABLE>
<CAPTION>
                                                                           Nine Months Ended September 30,
                                                                            1999                 1998

                                                                        -------------       ----------------

REVENUES

<S>                                                                   <C>                 <C>
Annuity and life insurance charges & fees                             $     204,103       $        133,730
Fee income                                                                   58,184                 36,913
Net investment income                                                         8,231                  8,141
Premium income                                                                1,236                     81
Net realized capital gains                                                      526                    124
Other                                                                         1,279                    260
                                                                        -------------       ----------------

    Total Revenues                                                          273,559                179,249
                                                                        -------------       ----------------


BENEFITS AND EXPENSES

Benefits:

  Annuity benefits                                                              480                    908
  Change in annuity policy reserves                                           2,519                    594
  Cost of minimum death benefit reinsurance                                   2,946                  3,645
  Return credited to contractowners                                          (1,208)                (7,164)
                                                                        -------------       ----------------

                                                                              4,737                 (2,017)
                                                                        -------------       ----------------

Expenses:

  Underwriting, acquisition and other insurance expenses                    152,264                109,970
  Interest expense                                                           46,505                 29,502
                                                                        -------------       ----------------

                                                                            198,769                139,472
                                                                        -------------       ----------------

     Total Benefits and Expenses                                            203,506                137,455
                                                                        -------------       ----------------

Income from operations before income taxes                                   70,053                 41,794

     Income tax expense                                                      18,884                  7,573
                                                                        -------------       ----------------

        Net income                                                    $      51,169       $         34,221
                                                                        =============       ================

</TABLE>





            See notes to unaudited consolidated financial statements.


<PAGE>





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

                        CONSOLIDATED STATEMENTS OF INCOME
                                   (unaudited)
                                 (in thousands)
<TABLE>
<CAPTION>

                                                                        Three Months Ended September 30,
                                                                            1999                 1998

                                                                        -------------       ---------------

REVENUES

<S>                                                                   <C>                 <C>
Annuity and life insurance charges & fees                             $      75,296       $        48,647
Fee income                                                                   21,894                13,687
Net investment income                                                         2,735                 2,470
Premium income                                                                  328                     -
Net realized capital gains                                                      206                   (47)
Other                                                                           437                   112
                                                                        -------------       ---------------


    Total Revenues                                                          100,896                64,869
                                                                        -------------       ---------------



BENEFITS AND EXPENSES

Benefits:

  Annuity benefits                                                              100                   349
  Change in annuity policy reserves                                          (6,759)                  191
  Cost of minimum death benefit reinsurance                                      (9)                  971
  Return credited to contractowners                                           2,654                  (148)
                                                                        -------------       ---------------


                                                                             (4,014)                1,363
                                                                        -------------       ---------------
Expenses:

  Underwriting, acquisition and other insurance expenses                     58,323                36,403
  Interest expense                                                           17,288                10,705
                                                                        -------------       ---------------

                                                                             75,611                47,108
                                                                        -------------       ---------------

     Total Benefits and Expenses                                             71,597                48,471
                                                                        -------------       ---------------

Income from operations before income taxes                                   29,299                16,398

     Income tax expense                                                       7,898                  2,224
                                                                        -------------       ---------------

        Net income                                                    $      21,401       $        14,174
                                                                        =============       ===============
</TABLE>



            See notes to unaudited consolidated financial statements.


<PAGE>



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

                 CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY

                                 (in thousands)

<TABLE>
<CAPTION>
                                                                        September 30,         December 31,
                                                                            1999                  1998
                                                                         (unaudited)
                                                                       ----------------      ---------------
Common stock:

<S>                                                                  <C>                   <C>
   Beginning and ending balance                                      $           2,000     $          2,000

Additional paid in capital:

  Beginning balance                                                            179,889              151,527
    Additional contributions                                                    11,690               28,362
                                                                       ----------------      ---------------
       Ending balance                                                          191,579              179,889

Retained earnings:

   Beginning balance                                                            64,993               30,226
      Net income                                                                51,169               34,767
                                                                       ----------------      ---------------
         Ending balance                                                        116,162               64,993

Accumulated other comprehensive income:

   Beginning balance                                                             3,535                  668
      Other comprehensive income (loss)                                        (4,553)                2,867
                                                                       ----------------      ---------------
         Ending balance                                                        (1,018)                3,535
                                                                       ----------------      ---------------
            Total shareholder's equity                               $         308,723     $        250,417
                                                                       ================      ===============
</TABLE>


















            See notes to unaudited consolidated financial statements.


<PAGE>



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

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (unaudited)
                                 (in thousands)
<TABLE>
<CAPTION>

                                                                        Nine Months Ended September 30,
                                                                         1999                   1998
                                                                     -------------         ----------------

Cash Flow from operating activities:

<S>                                                               <C>                    <C>
Net income                                                        $       51,169         $         34,221
Adjustments to reconcile net income to net cash
  used in operating activities:

    Increase in policy reserves                                            6,106                    7,192
    Amortization of bond discount                                             86                       75
    Amortization of insurance licenses                                       113                      113
    Change in receivable from/payable to affiliates                      115,248                   20,068
    Change in income tax receivable/payable                               (8,911)                  (9,144)
    Increase in other assets                                              (3,596)                    (283)
    Increase in accrued investment income                                    (77)                     145
    Increase in reinsurance receivable                                    (1,393)                  (5,782)
    Increase in deferred acquisition costs, net                         (246,261)                (145,542)
    Decrease in income tax receivable - deferred                           5,200                    3,725
    Increase in accounts payable and accrued expenses                     26,777                   14,872
    Increase in drafts outstanding                                         8,200                      489
    Change in foreign currency translation, net                              771                      125
    Unrealized loss on derivative instruments                                178                       -
    Net realized capital gain on sale of investments                        (526)                    (124)
                                                                     -------------         ----------------

        Net cash used in operating activities                            (46,916)                 (79,850)
                                                                     -------------         ----------------

Cash flow from investing activities:

    Purchase of fixed maturity investments                               (36,517)                 (21,660)
    Proceeds from sale and maturity of fixed maturity investments         33,561                    4,049
    Purchase of derivative investments                                    (4,974)                       -
    Purchase of shares in mutual funds                                   (15,564)                  (6,412)
    Proceeds from sale of shares in mutual funds                          14,229                    6,250
    Purchase of short term investments                                   (30,697)                      -
    Increase in policy loans                                                (472)                     130
                                                                     -------------         ----------------

        Net cash used in investing activities                            (40,434)                 (17,643)
                                                                     -------------         ----------------

Cash flow from financing activities:

    Capital contributions from parent                                     11,690                    5,762
    Increase in future fees payable to parent                             79,704                   38,621
    Net withdrawals from contractowner accounts                          (13,254)                  (6,176)
                                                                     -------------         ----------------
    Net cash provided by financing activities                             78,140                   38,207
                                                                     -------------         ----------------
    Net decrease in cash and cash equivalents                             (9,210)                 (59,286)
Cash and cash equivalents at beginning of period                          77,525                   81,974
                                                                     -------------         ----------------

Cash and cash equivalents at end of period                         $      68,315         $         22,688
                                                                     =============         ================
Supplemental cash flow disclosure:

    Income taxes paid                                              $      16,867         $         14,619
                                                                     =============         ================

    Interest paid                                                  $      45,434         $         22,243
                                                                     =============         ================

</TABLE>






            See notes to unaudited consolidated financial statements.


<PAGE>


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

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                               September 30, 1999

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, 1999 are not  necessarily  indicative  of the  results  that may be
     expected  for  the  year  ending   December   31,  1999.   For  further
     information,   refer  to  the  consolidated  financial  statements  and
     footnotes  thereto  in the  Company's  audited  consolidated  financial
     statements for the year ended December 31, 1998.

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

2.   NEW ACCOUNTING PRONOUNCEMENT

     In March 1998, the American  Institute of Certified Public  Accountants
     issued Statement of Position ("SOP") 98-1, "Accounting for the Costs of
     Software  Developed or Obtained for  Internal  Use. The SOP,  which has
     been  adopted  prospectively  as  of  January  1,  1999,  requires  the
     capitalization  of certain costs incurred in connection with developing
     or obtaining internal use software.  Prior to the adoption of SOP 98-1,
     the  Company  expensed  all  internal  use  software  related  costs as
     incurred.  The Company has  identified  and  capitalized  $1,993,000 of
     costs  associated  with  internal use software  through the nine months
     1999, and is amortizing the applicable  costs on a straight-line  basis
     over a three-year period.

     In June 1998, the Financial  Accounting Standards Board ("FASB") issued
     Financial   Accounting   Standards   Statement  133,   "Accounting  for
     Derivative Instruments and Hedging Activities" (FAS 133). Subsequently,
     in July 1999,  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 on its financial position.

3.   SEGMENT REPORTING

     In June 1997, the FASB issued SFAS 131,  "Disclosures about Segments of
     an Enterprise and Related  Information." SFAS 131 establishes standards
     for the way that public  enterprises report information about operating
     segments  in  annual  financial  statements  and  requires  that  those
     enterprises  report selected  information  about operating  segments in
     interim financial  reports issued to shareholders.  It also establishes
     standards   related  to   disclosures   about  products  and  services,
     geographic  areas  and  major  customers.  SFAS  131 is  effective  for
     financial statement periods beginning after December 15, 1997.


<PAGE>


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

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (continued)

                               September 30, 1999

     During 1998, to complement its annuity  products,  the Company launched
     specific  marketing and operational  activities  towards the release of
     variable life insurance and qualified retirement plan annuity products.
     As of September 30, 1999, sales were not significant  enough to warrant
     full segment disclosures.  Sales, as measured by premium received,  for
     the year ended  September  30, 1999 and assets under  management  as of
     September 30, 1999,  for the Company's  respective  reporting  segments
     were as follows:

<TABLE>
<CAPTION>
              (in thousands)        Variable   Variable    Qualified
                                    Annuity      Life         Plans     Total

<S>                            <C>              <C>        <C>         <C>
     Sales                      $4,895,558       $14,951    $77,417     $4,987,926
                                ==========       =======    =======     ==========

     Assets under management    $22,671,188      $15,760   $126,923    $22,813,871
                                ===========      =======   ========    ===========
</TABLE>


4.   COMPREHENSIVE INCOME

     As of January 1, 1998,  the  Company  adopted  Statement  of  Financial
     Accounting  Standards ("SFAS") 130, "Reporting  Comprehensive  Income".
     SFAS 130 sets standards for the reporting and display of  comprehensive
     income and its components;  however, the adoption of this Statement had
     no impact on the Company's  financial position or net income.  SFAS 130
     requires    unrealized    gains   and    losses   on   the    Company's
     available-for-sale   securities   and  foreign   currency   translation
     adjustments,  which  prior to  adoption  were  reported  separately  in
     shareholder's equity to be included in other comprehensive income.

     The components of comprehensive income, net of tax, for the nine months
     ended September 30, 1999 and 1998 were as follows:

              (in thousands)                             1999       1998
                                                         ----       ----

    Net income                                         $51,169     $34,221
    Other comprehensive income:
       Net unrealized gains/(losses) on securities      (5,054)      3,198
       Foreign currency translation                        501        (124)
                                                       -------     -------

    Other comprehensive income                          (4,553)      3,074
                                                       -------     -------

    Comprehensive income                               $46,616     $37,295
                                                       =======     =======

    The components of accumulated other  comprehensive  income, net of tax,
    as of September 30, 1999 and December 31, 1998 were as follows:

             (in thousands)                              1999       1998
                                                         ----       ----

    Unrealized investment gains                        $(1,211)    $3,843
    Foreign currency translation                           193       (308)
                                                       -------     ------

    Accumulated other comprehensive income             $(1,018)    $3,535
                                                       ========    ======



<PAGE>


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

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (continued)

                               September 30, 1999

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 $5,438,000 as of September 30, 1999 and
    $4,724,000  as of  December  31,  1998  and  has  generated  losses  of
    $1,747,000 and $1,407,000 for the nine months ended  September 30, 1999
    and 1998, respectively.

6.  FUTURE FEES PAYABLE TO PARENT

    On June 23,  1999,  the Company sold to its Parent,  effective  June 1,
    1999,  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 April 1994 through  April
    1999.  In  connection   with  this   transaction,   the  Parent  issued
    collateralized  notes in a private  placement  which are secured by the
    rights to receive future fees and charges purchased from the Company.

    Under the terms of the Purchase Agreement,  the rights sold provide for
    the Parent to receive 80% 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,  7 years).  The  Company  did not sell the right to receive
    future fees and charges after the  expiration  of the surrender  charge
    period.

    The proceeds  from the sale will be recorded as a liability and will be
    amortized over the remaining  surrender charge period of the designated
    contracts using the interest method.  The present value at June 1, 1999
    (discounted  at  7.5%),  of  future  fees and  charges  expected  to be
    realized on the designated contracts was $120,632,000.

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

                             (in thousands)
        Period Ending
         December 31,                               Amount
         ------------                              --------
             1999                                  $ 13,906
             2000                                    23,014
             2001                                    21,778
             2002                                    19,858
             2003                                    16,671
             2004                                    13,270
             2005                                     8,517
             2006                                     3,327
             2007                                       291
         ------------                              --------

            Total                                  $120,632


<PAGE>


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

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (continued)

                               September 30, 1999

7.  SUBSEQUENT EVENT

    On November 8, 1999,  the Board of Directors  authorized the Company to
    increase the par value of its capital  stock from $80 per share to $100
    per share in order to comply with minimum capital levels as required by
    the California Department of Insurance.  This transaction resulted in a
    corresponding  decrease in additional  paid-in  capital of $500,000 and
    had no effect on total shareholder's equity.


<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, 1999

American  Skandia Life  Assurance  Corporation  (the  "Company") is a stock life
insurance  company  domiciled in Connecticut  with licenses in all 50 states and
the District of Columbia.  It is a wholly-owned  subsidiary of American  Skandia
Investment Holding Corporation (the "Parent"),  whose ultimate parent is Skandia
Insurance Company Ltd., a Swedish company.

The  Company is  primarily  in the  business  of issuing  long-term  savings and
retirement  products to individuals,  groups and qualified pension plans.  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 April  1998,  the Company  began  offering a term life  insurance  product in
support  of an  affiliate's  mutual  fund  products.  In May 1998,  the  Company
launched a single premium  variable life insurance  product and in January 1999,
the Company  launched its second variable life product,  which was designed as a
flexible premium product.

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
lump-sum credit to the policyowner's account.

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.

RESULTS OF OPERATIONS

Annuity and life insurance  sales volume for the nine months ended September 30,
1999 and 1998 was $4,987,926,000 and $3,143,449,000,  respectively,  an increase
of  59%.  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, as well as, the continued
success of the  Company's  highly  rated  customer  service  teams.  Assets grew
$5,234,340,000  or  28%  since  December  31,  1998.  This  increase,  reflected
primarily  in the growth of  deferred  acquisition  costs and  separate  account
assets,  was the result of high sales volume and the strong  performance  of the
stock markets in the first half of 1999.  Decreases in the stock market over the
past three months were offset by continued strong sales,  allowing for a further
growth in assets. Liabilities grew $5,176,034,000 or 28% since December 31, 1998
as a result of an increase in  additional  reserves  required for the market and
sales-related growth of separate account assets, advances from the Parent and an
increase  in  future  fees   payable  to  Parent,   due  to  the  closing  of  a
securitization transaction in June 1999.

The  Company  experienced  a net gain of  $51,169,000  after tax for the current
period compared with $34,221,000 for the same period last year. The increase was
the result of greater  than  expected  sales  levels and  substantial  growth in
assets under  management,  which generated higher amounts of asset based charges
and fees and transfer  agency type fee income,  combined with favorable  expense
levels relative to sales volume.


<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 (Continued)

REVENUES

Due to strong market  conditions  and as a result of the  significant  growth in
sales and assets  under  management,  contract  owner fees and  charges and fees
generated from transfer agency type activities increased  $91,644,000 or 54% for
the nine month  period  ended  September  30, 1999 over the same period of 1998.
This is compared to an increase of 57% for the nine months ended  September  30,
1998.

Net investment  income increased 1% as compared with an increase of 35% in 1998.
The insignificant  change in 1999 was because general account  investment levels
remained  relatively  consistent from year to year. The increase in 1998 was the
result of income  generated  from bond  holdings,  which were increased in early
1998 and late 1997 to meet risk based capital goals, which in turn, increased as
a result of the growth in business.

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 1999 and 1998.

BENEFITS

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 liability ("GMDB") on its variable annuity product. 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  recently  announced  its  intention to exit this market.
During the third quarter, the Company changed its reserving  methodology for the
GMDB  to  comply  with  the  National  Association  of  Insurance  Commissioners
Actuarial  Guideline  34. This  change  resulted in a  $5,760,000  reduction  of
reserves at September 30, 1999.

The Company has  instituted a hedge program to  effectively  manage the interest
rate risk associated with the GMDB reserve fluctuations.  In September 1999, the
Company  purchased  equity put  options  which  mature in January  2000 and will
continue to evaluate  alternative  hedging  strategies.  The GMDB  reserve as of
September 30, 1999 was $9,134,000.

The reinsurance  premium associated with reinsuring the guaranteed minimum death
benefit exposure is based on levels of assets under management. Due to increased
sales and account growth this cost had increased from the prior year through May
1999. The  termination of this treaty as of May 31, 1999 resulted in the year to
year decrease in this benefit at September 30, 1999.

Return credited to contractowners  includes  primarily  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. The change in
the return  credited to  contractowners  for the nine months ended September 30,
1999  compared  with  September  30, 1998  represents  a decline in the expected
return on market value adjusted contracts.  This return was higher than expected
in 1998 and lower than expected in 1999.


<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 (Continued)

EXPENSES

Underwriting, acquisition and other insurance expenses for the nine months ended
September 30, 1999 and 1998 were as follows:

<TABLE>
<CAPTION>
                              (in thousands)                             September 30,        September 30,
                                                                             1999                 1998

<S>                                                                       <C>                   <C>
      Commissions                                                         $ 277,357             $168,873
      General expenses                                                      126,294               85,969
      Net capitalization of deferred acquisition costs                     (251,387)            (144,872)
                                                                          ---------             --------

      Underwriting, acquisition and other insurance expenses              $ 152,264              $109,970
                                                                          =========             =========
</TABLE>


Commissions  increased  with the  growth in sales and assets  under  management.
General expenses  increased with the growth in sales,  along with start up costs
associated  with the Company's  entry into variable life insurance and qualified
plans. The net capitalization of deferred  acquisition costs also increased with
the growth in sales related costs.

Interest  expense  increased  $17,003,000  or 58%  over the  nine  months  ended
September  30,  1998 as a result of  additional  financing  transactions,  which
consisted   of  the  sale  of  future   fees  to  the  Parent   ("securitization
transactions")  initiated  throughout  1998 and 1999,  offset by a  decrease  in
surplus notes  outstanding.  Surplus notes as of September 30, 1999 and December
31, 1998 totaled $193,000,000.

The effective income tax rates for the nine months ended September 30, 1999, and
1998  were 27% and  18%,  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 1998 and the first nine months of 1999, 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.


LIQUIDITY AND CAPITAL RESOURCES

The  Company's  1999  liquidity  requirement  was  met by  cash  from  insurance
operations,  reinsurance,  investment  activities,  advances from Parent and the
sale of rights to future fees and charges to its Parent.

Through  the  first  nine  months  of 1999 and 1998  approximately  95% and 97%,
respectively,  of sales were variable annuity and life insurance products.  Most
products carry a contingent deferred sales charge, which 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 through capital contributions, the sale of certain rights to future
fees and modified coinsurance arrangements.

On June 23, 1999,  the Company closed a  securitization  transaction in which it
received proceeds of $120,632,000. This transaction is further discussed at Note
6 of the Notes to Unaudited Consolidated Financial Statements.

During 1999 the Company  extended  certain  reinsurance  agreements  (which were
initiated  prior to1996).  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 the acquisition  costs on
the coming years' sales volume.


<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 (Continued)

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

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

The Company has  complied  with the NAIC's RBC  reporting  requirements  and has
total adjusted capital well above required capital.

YEAR 2000 COMPLIANCE

American Skandia's management  understands that financial and operational losses
could result from Year 2000 related service interruptions. American Skandia also
recognizes  the  importance  of  maintaining  emergency  response,   resumption,
recovery and restoration  strategies and acknowledges that the protection of its
assets and  business  operations  is a major  responsibility  to its  employees,
contract holders, and business associates.

As part of the Company's  Business  Continuity Plan, the Company has developed a
Year 2000  Contingency  Plan  which is  designed  and  structured  to respond to
emergencies,   resume   time-sensitive   business   operations,   recover   less
time-sensitive  business operations and restore operations to an operating site.
This plan involves virtually all aspects of the business and will continue to be
a focus of management beyond the Year 2000 event.

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".

Business Partners

Management  believes the area where American  Skandia is most vulnerable to Year
2000 issues is in its interfaces with computer  systems of investment  managers,
sub-advisors,  third party administrators,  vendors and other business partners.
The inability to properly  recognize date sensitive  electronic  information and
transfer  data between  systems  could cause  errors or even a complete  systems
failure  which would  result in a temporary  inability  to process  transactions
correctly or engage in normal business activities.

The American Skandia deferred annuity operational  business partners report that
all  critical  interfaces  are Year 2000  ready.  All  investment  managers  and
sub-advisors were required by the Securities and Exchange Commission to publicly
disclose their Year 2000 status in December 1998 and September 1999.

American Skandia continues to maintain formal  communications  with parties that
provide  third  party  administration,  record  keeping  and trust  services  in
connection  with its life  insurance and  qualified  retirement  plan  annuities
business. Management has received written assurances from these firms that their
interfaces will be Year 2000 ready.

American  Skandia has received  favorable  responses from its critical  business
partners,  has tested various systems and has developed and continues to develop
specific contingency plans in conjunction with these external parties.


<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 (Continued)

Information Technology Systems

All  internally  developed  systems were designed from the start with four digit
year  codes.  American  Skandia  engaged  an  external  information   technology
specialist to review its operating  systems and internally  developed  software.
The  assessment  was completed in December 1997 and the results were  favorable.
Specific modifications were suggested, evaluated and implemented for the annuity
administration  system.  Although this project was  completed  during 1998 and a
certificate  of compliance  has been  received,  American  Skandia  continues to
review new and existing systems.

Other non-critical  internally developed  applications in the client/server area
have already been or will be remediated within the next two months. In addition,
on November 4, 1999 American Skandia placed a temporary "freeze" through January
15, 2000 on non-critical changes to the production environment.

Management  believes  that the costs  associated  with this  aspect of Year 2000
compliance  have not had, and are not expected to have, a significant  impact on
the Company's results from operations.

Suppliers and Non-Information Technology Systems

Like most  companies,  American  Skandia  is  reliant on  network,  and  desktop
operating systems and software  providers to release compliant versions of their
respective  systems.  In management's  opinion,  American  Skandia's  network is
currently at the most compliant level  available.  The standard desktop software
will be replaced,  as fully compliant  versions become  available.  In addition,
American Skandia has contacted the non-information systems vendors and suppliers
regarding  their Year 2000  compliance  status and has  factored  the results of
these assessments into its contingency plans.

Management  believes  it has an  effective  program in place to resolve the Year
2000 issue in a timely manner. However, should errors or disruptions in computer
service  occur,  the  Company  could  realize  losses.   Given  the  nature  and
uncertainty  of such  losses,  the  amounts of such  losses,  if any,  cannot be
reasonably determined.


<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 nine
months ended  September  30, 1999.  The Company has provided a discussion of its
market risks in Item 7A of Part II of the December 31, 1998 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


November 15, 1999


<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 15, 1999


<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