<PAGE>   1

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


                                    FORM 10-Q

          /X/    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997

                                       OR

          / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                   FOR THE TRANSITION PERIOD FROM ____ TO ____



                         COMMISSION FILE NUMBER 33-58677


                     THE TRAVELERS LIFE AND ANNUITY COMPANY
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

              CONNECTICUT                                 06-0904249
      (State or other jurisdiction of                 (I.R.S. Employer
      incorporation or organization)                  Identification No.)
                                              
                  ONE TOWER SQUARE, HARTFORD, CONNECTICUT 06183
               (Address of principal executive offices) (Zip Code)

                                 (860) 277-0111
              (Registrant's telephone number, including area code)

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

                     Yes       /X/              No      / /

As of the date hereof, there were outstanding 30,000 shares of common stock, par
value $100 per share, of the registrant, all of which were owned by The
Travelers Insurance Company, an indirect, wholly owned subsidiary of Travelers
Group Inc.

                            REDUCED DISCLOSURE FORMAT

The registrant meets the conditions set forth in General Instruction H(1)(a) and
(b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced
disclosure format.
<PAGE>   2
                     THE TRAVELERS LIFE AND ANNUITY COMPANY


                                TABLE OF CONTENTS


PART I - FINANCIAL INFORMATION
<TABLE>
<CAPTION>
                                                                                               Page
                                                                                               ----


Item 1.  Financial Statements

<S>                                                                                            <C>
Condensed Statements of Income and Retained Earnings for the
Three and Nine Months Ended September 30, 1997 and 1996 (unaudited)............................   3

Condensed Balance Sheets as of September 30, 1997 (unaudited) and
December 31, 1996..............................................................................   4
                                                                                               
Condensed Statements of Cash Flows for the
Nine Months Ended September 30, 1997 and 1996 (unaudited)......................................   5
                                                                                               
Notes to Condensed Financial Statements (unaudited)............................................   6
                                                                                               
Item 2.  Management's Discussion and Analysis of Financial Condition and
Results of Operations..........................................................................  10
                                                                                               

PART II - OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K .....................................................  12
                                                                                               

SIGNATURES.....................................................................................  13
</TABLE>


                                       2
<PAGE>   3
                     THE TRAVELERS LIFE AND ANNUITY COMPANY
        CONDENSED STATEMENTS OF INCOME AND RETAINED EARNINGS (UNAUDITED)
                                 (IN THOUSANDS)

<TABLE>
<CAPTION>

                                                        THREE MONTHS ENDED SEPTEMBER 30,           NINE MONTHS ENDED
                                                                                                     SEPTEMBER 30,
                                                        ------------------------------         --------------------------
                                                               1997            1996               1997             1996
                                                               ----            ----               ----             ------
<S>                                                     <C>                   <C>              <C>                <C>    
REVENUES                                                                                      

Premiums                                                    $  13,175         $  4,608         $  24,784          $10,521
Net investment income                                          42,505           43,726           122,280          112,575
Realized investment gains (losses)                              7,806           (1,916)           20,690          (16,870)
Other revenues                                                  1,408              565             4,863              913
                                                             --------         --------          --------         --------
     Total Revenues                                            64,894           46,983           172,617          107,139
                                                             --------         --------          --------         --------

BENEFITS AND EXPENSES

Current and future insurance benefits                          28,655           20,091            72,047           55,721
Interest credited to contractholders                            8,816            9,307            22,804           26,352
Operating expenses, including amortization of deferred 
   acquisition costs and value of insurance in force            3,700            4,026            10,933            6,312
                                                             --------         --------          --------         --------
     Total Benefits and Expenses                               41,171           33,424           105,784           88,385
                                                             --------         --------          --------         --------

Income before federal income taxes                             23,723           13,559            66,833           18,754

Federal income tax                                              8,213            4,727            23,272            6,516
                                                             --------         --------          --------         --------

Net income                                                     15,510            8,832            43,561           12,238
Retained earnings at beginning of period                      195,749          161,313           167,698          157,907
                                                             --------         --------          --------         --------
Retained earnings at end of period                           $211,259         $170,145          $211,259         $170,145
                                                             ========         ========          ========         ========
</TABLE>













                  See notes to condensed financial statements.


                                       3
<PAGE>   4
                     THE TRAVELERS LIFE AND ANNUITY COMPANY
                            CONDENSED BALANCE SHEETS
                                 (IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                   SEPTEMBER 30,              DECEMBER 31,
                                                                      1997                        1996
                                                                   -------------              ------------
ASSETS                                                              (UNAUDITED)

<S>                                                                <C>                        <C>       
Investments                                                          $2,032,062                $1,810,676
Separate and variable accounts                                          625,307                   290,940
Deferred federal income taxes                                            40,573                    57,617
Other assets                                                            116,076                    95,050
                                                                     ----------                ----------
     Total Assets                                                    $2,814,018                $2,254,283
                                                                     ----------                ----------

LIABILITIES

Future policy benefit reserves                                      $   966,432               $   967,621
Contractholder funds                                                    714,380                   582,183
Separate and variable accounts                                          625,307                   290,716
Other liabilities                                                        66,034                    41,895
                                                                     ----------                ----------
     Total Liabilities                                                2,372,153                 1,882,415
                                                                     ----------                ----------

SHAREHOLDER'S EQUITY

Capital stock, par value $100; 100,000 shares authorized,   
   30,000 issued and outstanding                                          3,000                     3,000
Additional paid-in capital                                              167,314                   167,314
Retained earnings                                                       211,259                   167,698
Unrealized investment gains, net of taxes                                60,292                    33,856
                                                                     ----------                ----------
     Total Shareholder's Equity                                         441,865                   371,868
                                                                     ----------                ----------

     Total Liabilities and Shareholder's Equity                      $2,814,018                $2,254,283
                                                                     ==========                ==========
</TABLE>












                  See notes to condensed financial statements.


                                       4
<PAGE>   5
                     THE TRAVELERS LIFE AND ANNUITY COMPANY
                 CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                 (IN THOUSANDS)


<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,                                                      1997                       1996
                                                                                  ---------                  ---------

<S>                                                                               <C>                        <C>      
Net cash provided by operating activities                                         $  20,808                  $  15,889
                                                                                  ---------                  ---------

CASH FLOWS FROM INVESTING ACTIVITIES
     Proceeds from maturities of investments
         Fixed maturities                                                            81,423                     13,330
         Mortgage loans                                                               5,585                     16,140
     Proceeds from sales of investments
         Fixed maturities                                                           540,058                    896,127
         Equity securities                                                            9,579                      3,269
         Mortgage loans                                                               3,913                     18,737
         Real estate                                                                  4,493                          -
     Purchases of investments
         Fixed maturities                                                          (717,358)                  (884,000)
         Equity securities                                                           (6,259)                    (3,985)
         Mortgage loans                                                             (30,584)                    (7,576)
     Policy loans, net                                                                 (597)                    (1,550)
     Short-term securities (purchases) sales, net                                   (55,096)                   (66,490)
     Other investments (purchases) sales, net                                        (2,576)                     1,403
     Securities transactions in course of settlement                                 14,419                    (24,090)
                                                                                  ---------                  ---------
Net cash used in investing activities                                              (153,000)                   (38,685)
                                                                                  ---------                  ---------

CASH FLOWS FROM FINANCING ACTIVITIES
     Contractholder fund deposits                                                   190,334                     40,246
     Contractholder fund withdrawals                                                (58,138)                   (17,449)
                                                                                  ---------                  ---------
         Net cash provided by financing activities                                  132,196                     22,797
                                                                                  ---------                  ---------

Net increase in cash                                                                      4                          1

Cash at beginning of period                                                               -                          -
                                                                                  =========                  =========
Cash at end of period                                                             $       4                  $       1
                                                                                  =========                  =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
     Income taxes paid                                                            $  21,655                  $  15,970
                                                                                  =========                  =========
</TABLE>






                  See notes to condensed financial statements.


                                       5
<PAGE>   6
                     THE TRAVELERS LIFE AND ANNUITY COMPANY
               NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

                               SEPTEMBER 30, 1997


1.   GENERAL

     The interim financial statements of The Travelers Life and Annuity Company
     (the Company), a wholly owned subsidiary of The Travelers Insurance Company
     (an indirect, wholly owned subsidiary of Travelers Group Inc.), have been
     prepared in conformity with generally accepted accounting principles (GAAP)
     and are unaudited. They reflect all adjustments (none of which were other
     than normal recurring adjustments) necessary, in the opinion of management,
     for a fair presentation for the periods reported. The accompanying
     condensed financial statements should be read in conjunction with the
     financial statements and related notes included in the Company's Form 10-K
     for the year ended December 31, 1996.

     Effective January 1, 1997, the Company adopted Statement of Financial
     Accounting Standards No. 125, "Accounting for Transfers and Servicing of
     Financial Assets and Extinguishments of Liabilities" (FAS No. 125). FAS No.
     125 establishes accounting and reporting standards for transfers and
     servicing of financial assets and extinguishments of liabilities. These
     standards are based on an approach that focuses on control. Under this
     approach, after a transfer of financial assets, an entity recognizes the
     financial and servicing assets it controls and the liabilities it has
     incurred, derecognizes financial assets when control has been surrendered,
     and derecognizes liabilities when extinguished. FAS No. 125 provides
     standards for distinguishing transfers of financial assets that are sales
     from transfers that are secured borrowings. The requirements of FAS No. 125
     are effective for transfers and servicing of financial assets and
     extinguishments of liabilities occurring after December 31, 1996, and are
     to be applied prospectively. However, in December 1996 the Financial
     Accounting Standards Board (FASB) issued Statement of Financial Accounting
     Standards No. 127, "Deferral of the Effective Date of Certain Provisions of
     FASB Statement No. 125," which delays until January 1, 1998 the effective
     date for certain provisions. Application of FAS No. 125 prior to the
     effective date or retroactively is not permitted. The adoption of the
     provisions of FAS No. 125 effective January 1, 1997 did not have a material
     impact on results of operations, financial condition or liquidity, and the
     Company is currently evaluating the impact of the provisions whose
     effective date has been delayed until January 1, 1998.


                                       6
<PAGE>   7
                     THE TRAVELERS LIFE AND ANNUITY COMPANY
         NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED

                               SEPTEMBER 30, 1997


     In June 1997, the FASB issued Statement of Financial Accounting Standards
     No. 130, "Reporting Comprehensive Income" (FAS No. 130). FAS No. 130
     establishes standards for the reporting and display of comprehensive income
     and its components in a full set of general-purpose financial statements.
     All items that are required to be recognized under accounting standards as
     components of comprehensive income are to be reported in a financial
     statement that is displayed with the same prominence as other financial
     statements. FAS No. 130 stipulates that comprehensive income reflect the
     change in equity of an enterprise during a period from transactions and
     other events and circumstances from nonowner sources. Comprehensive income
     will thus represent the sum of net income and other comprehensive income,
     although FAS No. 130 does not require the use of the terms comprehensive
     income or other comprehensive income. The accumulated balance of other
     comprehensive income shall be displayed separately from retained earnings
     and additional paid-in capital in the statement of financial position. FAS
     No. 130 is effective for fiscal years beginning after December 15, 1997.
     The Company anticipates that the adoption of FAS No. 130 will result
     primarily in reporting unrealized gains and losses on investments in debt
     and equity securities in comprehensive income.

     In June 1997, the FASB also issued Statement of Financial Accounting
     Standards No. 131, "Disclosures About Segments of an Enterprise and Related
     Information" (FAS No. 131). FAS No. 131 establishes standards for the way
     that public enterprises report information about operating segments in
     annual financial statements and requires that selected information about
     those operating segments be reported in interim financial statements. FAS
     No. 131 supersedes Statement of Financial Accounting Standards No. 14,
     "Financial Reporting for Segments of a Business Enterprise" (FAS No. 14).
     FAS No. 131 requires that all public enterprises report financial and
     descriptive information about its reportable operating segments. Operating
     segments are defined as components of an enterprise about which separate
     financial information is available that is evaluated regularly by the chief
     operating decision maker in deciding how to allocate resources and in
     assessing performance. FAS No. 131 is effective for fiscal years beginning
     after December 15, 1997. The Company's reportable operating segment will
     not change as a result of the adoption of FAS No. 131.


                                       7
<PAGE>   8
                     THE TRAVELERS LIFE AND ANNUITY COMPANY
         NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED

                               SEPTEMBER 30, 1997


     The accompanying financial statements reflect a change in presentation of
     the assets, liabilities and operations of the structured settlement
     separate account business of the Company. The assets and liabilities were
     previously reported in separate account line items and are now incorporated
     in various financial statement classifications. As a result of this change,
     invested assets in the amount of $924.5 million and $863.6 million at
     September 30, 1997 and December 31, 1996, respectively, associated with
     structured settlement contract obligations, are reported as investments.
     The related structured settlement contract obligations, which were $830.3
     million and $809.1 million at September 30, 1997 and December 31, 1996,
     respectively, are included in future policy benefits and contractholder
     funds. Additionally, structured settlement transactions included in the
     income statement for the nine months ended September 30, 1997 and 1996 are
     premiums of $16.7 million and $5.3 million, respectively, net investment
     income of $49.3 million and $45.2 million, respectively, and benefits and
     expenses of $48.4 million and $41.7 million, respectively. The 1996 amounts
     were previously reported as a net $8.8 million included in other revenue.

     This change in presentation has no effect on net income, total assets,
     total liabilities, or shareholder's equity as reflected in the condensed
     statement of income and retained earnings, and balance sheets for the
     periods presented.

     The Company has determined that a change in presentation is warranted
     because of the nature of this particular separate account and the change in
     product focus of the Company. The assets of the structured settlement
     separate account are owned by, and investment risk is borne by, the
     Company, which also guarantees the obligations of this separate account.
     Consequently, the Company, not the contractholder, bears the risks of this
     separate account.

     The Company is now offering a variety of variable annuity products where
     the investment risk is borne by the contractholder, not the Company, and
     the benefits are not guaranteed. The premiums and deposits related to these
     products are reported in separate accounts. The Company considers it
     necessary to differentiate, for financial statement purposes, the results
     of the risks it has assumed from those it has not. See also note 4.

     Certain financial information that is normally included in financial
     statements prepared in accordance with GAAP but is not required for interim
     reporting purposes has been condensed or omitted.

     Certain reclassifications have been made to the prior year's financial
     statements to conform to the current year's presentation.


                                       8
<PAGE>   9
                     THE TRAVELERS LIFE AND ANNUITY COMPANY
         NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED

                               SEPTEMBER 30, 1997


2.   SHAREHOLDER'S EQUITY

     Statutory capital and surplus of the Company was $254.1 million at December
     31, 1996. The Company is subject to various regulatory restrictions that
     limit the maximum amount of dividends available to be paid to its parent
     without prior approval of insurance regulatory authorities. The maximum
     amount of dividends available to be paid to the Company's shareholder in
     1997 without prior approval of the Connecticut Insurance Department is
     $14.8 million. The Company has not paid dividends to its parent during the
     nine months ended September 30, 1997.


3.   COMMITMENTS AND CONTINGENCIES

     The Company is a defendant or co-defendant in various litigation matters in
     the normal course of business. Although there can be no assurances, as of
     September 30, 1997, the Company believes, based on information currently
     available, that the ultimate resolution of these legal proceedings would
     not be likely to have a material adverse effect on its results of
     operations, financial condition or liquidity.


4.   STRUCTURED SETTLEMENT CONTRACTS

     The Company has structured settlement contracts that provide guarantees for
     the contractholders independent of the investment performance of the assets
     held in the related separate account. The assets held in the separate
     account are owned by the Company and contractholders do not share in their
     investment performance.

     The Company maintains assets sufficient to fund the guaranteed benefits
     attributable to the liabilities. Assets held in the separate account cannot
     be used to satisfy any other obligations of the Company.

     The Company reports the related assets and liabilities in investments,
     future policy benefit reserves and contractholder funds.


                                       9
<PAGE>   10
                     THE TRAVELERS LIFE AND ANNUITY COMPANY


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

Management's narrative analysis of the results of operations is presented in
lieu of Management's Discussion and Analysis of Financial Condition and Results
of Operations, pursuant to General Instruction H(2)(a) of Form 10-Q.

RESULTS OF OPERATIONS

<TABLE>
<CAPTION>
For The Nine Months Ended September 30,
(in millions)          1997          1996
                    -------       -------

<S>                 <C>           <C>    
Revenues (1)        $ 172.6       $ 107.1
                    =======       =======

Net income          $  43.6       $  12.2
                    =======       =======
</TABLE>


(1)   Revenues include pre-tax realized gains (losses) of $20.7 million and
      $(16.9) million in 1997 and 1996, respectively.

The Travelers Life and Annuity Company (the Company) offers fixed and variable
deferred annuities and individual life insurance to individuals and small
businesses. It also provides single premium group annuity close-out contracts
and individual structured settlement annuities.

The individual life and deferred annuity business is marketed primarily through
the Financial Consultants of Smith Barney Inc., an affiliate of the Company, and
a nationwide network of independent agents. The majority of the annuity business
and a substantial portion of the individual life business written by the Company
is accounted for as investment contracts, with the result that the deposits
collected are not included in revenues.

The Company has structured settlement contracts that provide guarantees for the
contractholders independent of the investment performance of the assets held in
the related separate account. The assets held in the separate account are owned
by the Company and contractholders do not share in their investment performance.
These contracts are purchased by the insurance subsidiaries of Travelers
Property Casualty Corp. (TAP), an affiliate of the Company, in connection with
the settlement of certain of their policyholder obligations.


RESULTS OF OPERATIONS

Net income for the nine months ended September 30, 1997 was $43.6 million,
compared to $12.2 million for the nine months ended September 30, 1996.
Excluding net realized investment gains and losses, operating earnings increased
from $23.2 million in 1996 to $30.1 million in 1997. This increase was driven by
an overall increase in investment income and management fee income attributable
to the growth in the deferred annuity business.


                                       10
<PAGE>   11
                     THE TRAVELERS LIFE AND ANNUITY COMPANY


PREMIUMS AND DEPOSITS

<TABLE>
<CAPTION>
For The Nine Months Ended September 30,
(in thousands)                             1997               1996
                                         --------           --------
                                                        
<S>                                      <C>                <C>     
Deferred annuities                       $365,691           $217,451
Structured settlements                     50,261             23,951
Universal life                             24,501             22,620
Traditional life                            7,721              4,875
Single premium group close-out                359                386
                                         --------           --------
                                         $448,533           $269,283
                                         ========           ========
</TABLE>

                                    

The increase in deferred annuity deposits is attributable to strong sales of
products distributed by the Financial Consultants of Smith Barney Inc., an
affiliate of the Company. Structured settlement growth reflects a successful
cross-selling initiative with the insurance subsidiaries of TAP. Future sales
may be impacted favorably from A.M. Best Company's recently announced upgrade of
The Travelers Insurance Company's and the Company's rating to A+ (Superior).
This rating is not a recommendation to buy, sell or hold securities, and may be
revised or withdrawn at any time.

Policyholder benefit reserves, contractholder funds and separate account
reserves totaled $2.3 billion at September 30, 1997, up from $1.8 billion at
September 30, 1996, primarily as a result of growth in the deferred annuity
business.


INSURANCE REGULATIONS

Risk-based capital requirements are used as early warning tools by the National
Association of Insurance Commissioners and the states to identify companies that
merit further regulatory action. At September 30, 1997, the Company had adjusted
capital in excess of amounts requiring any regulatory action.

The Company is subject to various regulatory restrictions that limit the maximum
amount of dividends available to be paid to its parent without prior approval of
insurance regulatory authorities in the state of domicile. The maximum amount of
dividends available to be paid to the Company's shareholder in 1997 without
prior approval of the Connecticut Insurance Department is $14.8 million. The
Company has not paid dividends to its parent during the nine months ended
September 30, 1997.


FUTURE APPLICATIONS OF ACCOUNTING STANDARDS

See Note 1 to the Condensed Financial Statements for a discussion of recently
issued accounting pronouncements.


                                       11
<PAGE>   12
                           PART II - OTHER INFORMATION


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)  EXHIBITS.

<TABLE>
<CAPTION>
EXHIBIT NO.         DESCRIPTION                                                                          FILING METHOD
-----------         -----------                                                                          -------------
<S>                 <C>                                                                                  <C>
3.01                Charter of The Travelers Life and Annuity Company (the "Company"), as 
                    amended on April 10, 1990, incorporated herein by reference to Exhibit
                    6(a) to the Registration Statement on Form N-4, File No.
                    33-58131, filed on March 17, 1995.

3.02                By-laws of the Company, as amended on October 20, 1994,
                    incorporated herein by reference to Exhibit (6)b to the
                    Registration Statement on Form N-4, File No.
                    33-58131, filed on March 17, 1995.

27.01               Financial Data Schedule                                                              Electronic
</TABLE>











(b)  REPORTS ON FORM 8-K.

No reports on Form 8-K have been filed by the Company during the quarter ended
September 30, 1997.


                                       12
<PAGE>   13
                                   SIGNATURES


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.



                            THE TRAVELERS LIFE AND ANNUITY COMPANY
                            --------------------------------------
                                        (Registrant)


Date  November 12, 1997     /s/ Ian R. Stuart
    ---------------------   -----------------

                            Ian R. Stuart
                            Chief Financial Officer and Chief Accounting Officer
                            (Principal Financial Officer)



                                       13