<PAGE>

                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 JUNE 30, 2003

                                       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 CITYPLACE, HARTFORD, CONNECTICUT 06103-3415
               (Address of principal executive offices) (Zip Code)

                                 (860) 308-1000
              (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 [ ]

Indicate by checkmark whether the registrant is an accelerated filer (as defined
in Rule 12b-2 of the Exchange Act).

                              Yes [ ]             No [X]

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 Citigroup
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>

                     THE TRAVELERS LIFE AND ANNUITY COMPANY

                                TABLE OF CONTENTS

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

ITEM 1. FINANCIAL STATEMENTS

Condensed Statements of Income for the six
months ended June 30, 2003 and 2002 (unaudited).............................................................    3

Condensed Balance Sheets as of June 30, 2003 and
December 31, 2002 (unaudited)...............................................................................    4

Condensed Statements of Changes in Shareholder's Equity
for the six months ended June 30, 2003 and 2002 (unaudited).................................................    5

Condensed Statements of Cash Flows for the
six months ended June 30, 2003 and 2002 (unaudited).........................................................    6

Notes to Condensed Financial Statements (unaudited).........................................................    7

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS...............................................................   10

ITEM 4. CONTROLS AND PROCEDURES.............................................................................   14

PART II - OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K....................................................................   15

Signatures..................................................................................................   16

Exhibit 31.01...............................................................................................   17

Exhibit 31.02...............................................................................................   18

Exhibit 32.01...............................................................................................   19
</TABLE>

                                       2
<PAGE>

                     THE TRAVELERS LIFE AND ANNUITY COMPANY
                         CONDENSED STATEMENTS OF INCOME
                                   (UNAUDITED)
                                ($ in thousands)

<TABLE>
<CAPTION>
                                                                         THREE MONTHS ENDED           SIX MONTHS ENDED
                                                                              JUNE 30,                     JUNE 30,
-----------------------------------------------------------------------------------------------------------------------------
                                                                        2003           2002           2003           2002
                                                                    ------------   ------------   ------------   ------------
<S>                                                                 <C>            <C>            <C>            <C>
REVENUES
Premiums                                                            $      9,425   $     10,556   $     20,744   $     20,823
Net investment income                                                     83,209         76,151        166,764        143,370
Realized investment losses                                                (3,243)       (19,699)        (6,627)       (15,636)
Fee income                                                                56,463         50,398        107,657        100,563
Other revenues                                                             4,975          5,186         10,516          9,322
-----------------------------------------------------------------------------------------------------------------------------
     Total Revenues                                                      150,829        122,592        299,054        258,442
-----------------------------------------------------------------------------------------------------------------------------
BENEFITS AND EXPENSES
Current and future insurance benefits                                     21,263         21,410         43,786         46,790
Interest credited to contractholders                                      53,597         42,933        105,052         82,126
Amortization of deferred acquisition costs                                33,759         22,295         65,508         13,675
General and administrative expenses                                        7,544          6,173         14,976         13,181
-----------------------------------------------------------------------------------------------------------------------------
      Total Benefits and Expenses                                        116,163         92,811        229,322        155,772
-----------------------------------------------------------------------------------------------------------------------------
Income before federal income taxes                                        34,666         29,781         69,732        102,670
Federal income taxes                                                       9,461         10,422         15,572         35,961
-----------------------------------------------------------------------------------------------------------------------------
Net Income                                                          $     25,205   $     19,359   $     54,160   $     66,709
=============================================================================================================================
</TABLE>

                  See Notes to Condensed Financial Statements.

                                       3
<PAGE>

                     THE TRAVELERS LIFE AND ANNUITY COMPANY
                            CONDENSED BALANCE SHEETS
                                   (UNAUDITED)
                                ($ in thousands)

<TABLE>
<CAPTION>
                                                                    JUNE 30, 2003   DECEMBER 31, 2002
-----------------------------------------------------------------------------------------------------
<S>                                                                 <C>             <C>
ASSETS
Investments (including $134,151 and $144,284 subject to
   securities lending agreements)                                   $  6,215,717       $  5,528,853
Separate and variable accounts                                         7,875,447          6,862,009
Deferred acquisition costs                                             1,134,945          1,064,118
Other assets                                                             285,471            239,194
-----------------------------------------------------------------------------------------------------
     Total Assets                                                   $ 15,511,580       $ 13,694,174
-----------------------------------------------------------------------------------------------------
LIABILITIES
Future policy benefits and claims                                   $  1,142,741       $  1,145,692
Contractholder funds                                                   4,204,413          3,886,083
Separate and variable accounts                                         7,875,447          6,862,009
Deferred income taxes                                                    265,952            199,350
Other liabilities                                                        628,797            441,249
-----------------------------------------------------------------------------------------------------
     Total Liabilities                                                14,117,350         12,534,383
-----------------------------------------------------------------------------------------------------
SHAREHOLDER'S EQUITY
Common stock, par value $100; 100,000 shares authorized,
     30,000 issued and outstanding                                         3,000              3,000
Additional paid-in capital                                               417,316            417,316
Retained earnings                                                        698,694            644,534
Accumulated other changes in equity from nonowner sources                275,220             94,941
-----------------------------------------------------------------------------------------------------
     Total Shareholder's Equity                                        1,394,230          1,159,791
-----------------------------------------------------------------------------------------------------
     Total Liabilities and Shareholder's Equity                     $ 15,511,580       $ 13,694,174
=====================================================================================================
</TABLE>

                  See Notes to Condensed Financial Statements.

                                       4
<PAGE>

                     THE TRAVELERS LIFE AND ANNUITY COMPANY
                  STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
                                   (UNAUDITED)
                                ($ in thousands)

<TABLE>
<CAPTION>
                                                                         THREE MONTHS ENDED            SIX MONTHS ENDED
                                                                               JUNE 30,                     JUNE 30,
-----------------------------------------------------------------------------------------------------------------------------
COMMON STOCK                                                            2003           2002           2003           2002
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                                 <C>            <C>            <C>            <C>
Balance, beginning of period                                        $      3,000   $      3,000   $      3,000   $      3,000
Changes in common stock                                                        -              -              -              -
-----------------------------------------------------------------------------------------------------------------------------
Balance, end of period                                              $      3,000   $      3,000   $      3,000   $      3,000
=============================================================================================================================

-----------------------------------------------------------------------------------------------------------------------------
ADDITIONAL PAID-IN CAPITAL
-----------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period                                        $    417,316   $    417,316   $    417,316   $    417,316
Changes in additional paid-in capital                                          -              -              -              -
-----------------------------------------------------------------------------------------------------------------------------
Balance, end of period                                              $    417,316   $    417,316   $    417,316   $    417,316
=============================================================================================================================

-----------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS
-----------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period                                        $    673,489   $    588,514   $    644,534   $    541,164
Net income                                                                25,205         19,359         54,160         66,709
-----------------------------------------------------------------------------------------------------------------------------
Balance, end of period                                              $    698,694   $    607,873   $    698,694   $    607,873
=============================================================================================================================

-----------------------------------------------------------------------------------------------------------------------------
ACCUMULATED OTHER CHANGES
IN EQUITY FROM NONOWNER SOURCES
-----------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period                                        $    147,179   $    (21,942)  $     94,941   $     16,084
Unrealized gains (losses), net of tax                                    125,864         16,848        177,304        (19,824)
Derivative instrument hedging activity gains,
net of tax                                                                 2,177          3,462          2,975          2,108
-----------------------------------------------------------------------------------------------------------------------------
Balance, end of period                                              $    275,220   $     (1,632)  $    275,220   $     (1,632)
=============================================================================================================================

-----------------------------------------------------------------------------------------------------------------------------
SUMMARY OF CHANGES IN EQUITY
FROM NONOWNER SOURCES
-----------------------------------------------------------------------------------------------------------------------------
Net income                                                          $     25,205   $     19,359   $     54,160   $     66,709
Other changes in equity from nonowner sources                            128,041         20,310        180,279        (17,716)
-----------------------------------------------------------------------------------------------------------------------------
Total changes in equity from nonowner sources                       $    153,246   $     39,669   $    234,439   $     48,993
=============================================================================================================================

-----------------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDER'S EQUITY
Balance, beginning of period                                        $  1,240,984   $    986,888   $  1,159,791   $    977,564
Changes in equity from nonowner sources                                  153,246         39,669        234,439         48,993
-----------------------------------------------------------------------------------------------------------------------------
Balance, end of period                                              $  1,394,230   $  1,026,557   $  1,394,230   $  1,026,557
=============================================================================================================================
</TABLE>

                  See Notes to Condensed Financial Statements.

                                       5
<PAGE>

                     THE TRAVELERS LIFE AND ANNUITY COMPANY
                       CONDENSED STATEMENTS OF CASH FLOWS
                           INCREASE (DECREASE) IN CASH
                                   (UNAUDITED)
                                ($ in thousands)

<TABLE>
<CAPTION>
                                                                                SIX MONTHS ENDED
                                                                                    JUNE 30,
                                                                               2003           2002
------------------------------------------------------------------------------------------------------
<S>                                                                        <C>            <C>
NET CASH USED IN OPERATING ACTIVITIES                                      $    (59,650)  $    (88,223)
------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
     Proceeds from maturities of investments
         Fixed maturities                                                       236,662        112,820
         Mortgage loans                                                           4,358         13,189
     Proceeds from sales of investments
         Fixed maturities                                                       566,208        917,057
         Equity securities                                                        6,382          1,044
         Real Estate                                                                794              -
     Purchases of investments
         Fixed maturities                                                    (1,185,131)    (1,627,293)
         Equity securities                                                       (3,017)          (346)
         Mortgage loans                                                         (23,789)       (21,758)
     Policy loans, net                                                           (2,201)          (987)
     Short-term securities sales, net                                            14,301         17,496
     Other investment purchases, net                                            (34,434)        (9,312)
     Securities transactions in course of settlement, net                       146,794         68,232
------------------------------------------------------------------------------------------------------
     Net cash used in investing activities                                     (273,073)      (529,858)
------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
     Contractholder fund deposits                                               446,932        748,540
     Contractholder fund withdrawals                                           (128,602)      (119,245)
------------------------------------------------------------------------------------------------------
     Net cash provided by financing activities                                  318,330        629,295
------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash                                                 (14,393)        11,214

Cash at beginning of period                                                      15,424         19,514
------------------------------------------------------------------------------------------------------
Cash at end of period                                                      $      1,031   $     30,728
------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
     Income taxes paid                                                     $     91,987   $     19,347
======================================================================================================
</TABLE>

                  See Notes to Condensed Financial Statements.

                                       6
<PAGE>

                     THE TRAVELERS LIFE AND ANNUITY COMPANY
               NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

1.       BASIS OF PRESENTATION

         The Travelers Life and Annuity Company (the Company) is a wholly owned
         subsidiary of The Travelers Insurance Company (TIC), an indirect wholly
         owned subsidiary of Citigroup Inc. (Citigroup). Citigroup is a
         diversified global financial services holding company whose businesses
         provide a broad range of financial services to consumer and corporate
         customers around the world. The condensed financial statements and
         accompanying footnotes of the Company are prepared in conformity with
         accounting principles generally accepted in the United States of
         America (GAAP) and are unaudited. The preparation of financial
         statements in conformity with GAAP requires management to make
         estimates and assumptions that affect the reported amounts of assets
         and liabilities, the disclosure of contingent assets and liabilities at
         the date of the financial statements and the reported amounts of
         revenues and benefits and expenses during the reporting period. Actual
         results could differ from those estimates.

         In the opinion of management, the interim financial statements reflect
         all adjustments necessary (all of which were normal recurring
         adjustments) for a fair presentation of results 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 Annual Report on Form 10-K for the year ended
         December 31, 2002. The condensed balance sheet as of December 31, 2002
         was derived from the audited balance sheet included in the Form 10-K.

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

         Certain prior year amounts have been reclassified to conform to the
         2003 presentation.

2.       ACCOUNTING STANDARDS

         CHANGES IN ACCOUNTING PRINCIPLES

         COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES

         On January 1, 2003, the Company adopted the Financial Accounting
         Standards Board (FASB) Statement of Financial Accounting Standards
         (SFAS) No. 146, "Accounting for Costs Associated with Exit or Disposal
         Activities" (FAS 146). FAS 146 requires that a liability for costs
         associated with exit or disposal activities, other than in a business
         combination, be recognized when the liability is incurred. Previous
         generally accepted accounting principles provided for the recognition
         of such costs at the date of management's commitment to an exit plan.
         In addition, FAS 146 requires that the liability be measured at fair
         value and be adjusted for changes in estimated cash flows. The
         provisions of the new standard are effective for exit or disposal
         activities initiated after December 31, 2002. The adoption of this
         change in accounting principle did not have an impact on the Company's
         financial statements.

         STOCK-BASED COMPENSATION

         On January 1, 2003, the Company adopted the fair value recognition
         provisions of Statement of Financial Accounting Standards No. 123,
         "Accounting for Stock-Based Compensation" (FAS 123), prospectively for
         all awards granted, modified, or settled after January 1, 2003. The
         prospective method is one of the adoption methods provided for under
         FAS No. 148, "Accounting for Stock-Based Compensation-Transition and
         Disclosure", issued in December 2002.

                                       7
<PAGE>

                     THE TRAVELERS LIFE AND ANNUITY COMPANY
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                                   (CONTINUED)

         FAS 123 requires that compensation cost for all stock awards be
         calculated and recognized over the service period (generally equal to
         the vesting period). This compensation cost is determined using option
         pricing models, intended to estimate the fair value of the awards at
         the grant date. Similar to Accounting Principles Board Opinion No. 25,
         "Accounting for Stock Issued to Employees", the alternative method of
         accounting, an offsetting increase to stockholder's equity under FAS
         123 is recorded equal to the amount of compensation expense charged.
         The adoption of FAS 123 did not have a significant impact on the
         Company's financial statements.

         ACCOUNTING STANDARDS NOT YET ADOPTED

         CONSOLIDATION OF VARIABLE INTEREST ENTITIES

         In January 2003, the FASB released FASB Interpretation No. 46,
         "Consolidation of Variable Interest Entities" (FIN 46). This
         Interpretation changes the method of determining whether certain
         entities should be included in the Company's financial statements. An
         entity is subject to FIN 46 and is called a variable interest entity
         (VIE) if it has (1) equity that is insufficient to permit the entity to
         finance its activities without additional subordinated financial
         support from other parties, or (2) equity investors that cannot make
         significant decisions about the entity's operations, or that do not
         absorb the expected losses or receive the expected returns of the
         entity. All other entities are evaluated for consolidation under FAS
         No. 94, "Consolidation of All Majority-Owned Subsidiaries." A VIE is
         consolidated by its primary beneficiary, which is the party involved
         with the VIE that has a majority of the expected losses or a majority
         of the expected residual returns or both.

         The provisions of FIN 46 are to be applied immediately to VIEs created
         after January 31, 2003, and to VIEs in which an enterprise obtains an
         interest after that date. For VIEs in which an enterprise holds a
         variable interest that it acquired before February 1, 2003, FIN 46
         applies in the first fiscal period after June 15, 2003. For any VIEs
         that must be consolidated under FIN 46 that were created before
         February 1, 2003, the assets, liabilities and noncontrolling interest
         of the VIE would be initially measured at their carrying amounts with
         any difference between the net amount added to the balance sheet and
         any previously recognized interest being recognized as the cumulative
         effect of an accounting change. If determining the carrying amounts is
         not practicable, fair value at the date FIN 46 first applies may be
         used to measure the assets, liabilities and noncontrolling interest of
         the VIE.

         The Company has investments in entities that may be considered to be
         variable interests. The carrying value of these investments is
         approximately $158 million at June 30, 2003 and primarily consists of
         interests in security investment funds in the amount of $79 million,
         real estate investment funds of $21 million, and below investment grade
         asset-backed and mortgage-backed securities and equity investments of
         $58 million. The Company is evaluating the impact of applying FIN 46 to
         existing VIEs in which it has variable interests and has not yet
         completed this analysis. The Company continues to evaluate the impact
         of applying FIN 46 to entities acquired before February 1, 2003;
         however, at this time, it is anticipated that the effect on the
         Company's consolidated balance sheets is not expected to be
         significant. No entities were created between February 1, 2003 and June
         30, 2003 that would require application of FIN 46.

         DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

         In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement
         133 on Derivative Instruments and Hedging Activities" (FAS 149). FAS
         149 amends and clarifies accounting for derivative instruments,
         including certain derivative instruments embedded in other contracts,
         and for

                                       8
<PAGE>

                     THE TRAVELERS LIFE AND ANNUITY COMPANY
               NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
                                   (CONTINUED)

         hedging activities under SFAS No. 133, "Accounting for Derivative
         Instruments and Hedging Activities." In particular, this Statement
         clarifies under what circumstances a contract with an initial net
         investment meets the characteristic of a derivative and when a
         derivative contains a financing component that warrants special
         reporting in the statement of cash flows. This Statement is generally
         effective for contracts entered into or modified after June 30, 2003
         and is not expected to have a material impact on the Company's
         financial statements.

         ACCOUNTING AND REPORTING BY INSURANCE ENTERPRISES FOR CERTAIN
         NONTRADITIONAL LONG-DURATION CONTRACTS AND FOR SEPARATE ACCOUNTS

         In July 2003, Statement of Position 03-01 "Accounting and Reporting by
         Insurance Enterprises for Certain Nontraditional Long-Duration
         Contracts and for Separate Accounts" (SOP 03-01) was released. SOP
         03-01 provides guidance on accounting and reporting by insurance
         enterprises for separate account presentation, accounting for an
         insurer's interest in a separate account, transfers to a separate
         account, valuation of certain liabilities, contracts with death or
         other benefit features, contracts that provide annuitization benefits,
         and sales inducements to contract holders. SOP 03-01 is effective for
         financial statements for fiscal years beginning after December 15,
         2003. The Company is currently evaluating the impact that SOP 03-01
         will have on its financial statements.

3.       INVESTMENTS

         The Company participates in dollar roll repurchase transactions as a
         way to generate investment income. These transactions involve the sale
         of mortgage-backed securities with the agreement to repurchase
         substantially the same securities from the same counterparty. Cash is
         received from the sale, which is invested in the Company's short-term
         money market pool. The cash is returned at the end of the roll period
         when the mortgage-backed securities are repurchased. The Company will
         generate additional investment income based upon the difference between
         the sale and repurchase prices.

         This transaction is recorded as a securitized borrowing. The
         mortgage-backed securities remain recorded as assets. The cash proceeds
         are reflected in short-term investments and a liability is established
         to reflect the Company's obligation to repurchase the securities at the
         end of the roll period. This liability is classified as other
         liabilities in the condensed balance sheets and was $148.1 million and
         $.5 million at June 30, 2003 and December 31, 2002, respectively.

4.       SHAREHOLDER'S EQUITY

         Statutory capital and surplus of the Company was $397 million at
         December 31, 2002. The Company is currently 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 Company does not have surplus available to
         pay dividends to TIC in 2003 without prior approval of the State of
         Connecticut Insurance Department.

5.       COMMITMENTS AND CONTINGENCIES

         In the ordinary course of business, the Company is a defendant or
         co-defendant in various litigation matters incidental to and typical of
         the businesses in which it is engaged. In the opinion of the Company's
         management, the ultimate resolution of these legal proceedings would
         not be likely to have a material adverse effect on the Company's
         results of operations, financial condition or liquidity.

                                       9
<PAGE>

                     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.

The Company's Annual Report on Form 10-K, its quarterly reports on Form 10-Q and
any current reports on Form 8-K, and all amendments to these reports are
available on the Citigroup website at http://www.citigroup.com by selecting the
"Investor Relations" page and selecting "SEC Filings".

RESULTS OF OPERATIONS ($ in millions)

<TABLE>
<CAPTION>
                                                       THREE MONTHS ENDED        SIX MONTHS ENDED
                                                            JUNE 30,                  JUNE 30,
                                                       2003         2002         2003         2002
                                                    ----------   ----------   ----------   ----------
<S>                                                 <C>          <C>          <C>          <C>
Revenues                                            $    150.8   $    122.6   $    299.1   $    258.4
Provisions for benefits and interest credited             74.9         64.3        148.9        128.9
Operating expenses                                        41.2         28.5         80.5         26.8
                                                    ----------   ----------   ----------   ----------
Income before taxes                                       34.7         29.8         69.7        102.7
Income taxes                                               9.5         10.4         15.5         36.0
                                                    ----------   ----------   ----------   ----------
Net income                                                25.2         19.4         54.2         66.7
Less: realized investment losses, after-tax                2.1         12.8          4.3         10.2
                                                    ----------   ----------   ----------   ----------
Net income before realized investment
   gains/(losses) (1)                               $     27.3   $     32.2   $     58.5   $     76.9
                                                    ----------   ----------   ----------   ----------
</TABLE>

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

(1) Net income before realized investment gains/(losses) is a non-GAAP measure.
    The Company believes that this presentation of income, which management uses
    internally to measure performance, is useful to investors because it
    enhances the understanding of ongoing operations and the underlying trends
    of the business. The timing of realized insurance investment portfolio gains
    and losses can be significantly impacted by both discretionary and other
    economic factors and therefore management believes it is important to
    understand the impact of realized gains and losses in order to evaluate
    current operating trends.

The Travelers Life and Annuity Company (the Company) is a wholly owned
subsidiary of The Travelers Insurance Company (TIC), an indirect wholly owned
subsidiary of Citigroup Inc. (Citigroup). The Company offers fixed and variable
deferred annuities and individual life insurance to individuals and small
businesses. These products are distributed primarily through Salomon Smith
Barney, Primerica Financial Services, affiliates of the Company, a nationwide
network of independent financial professionals and non-affiliated
broker-dealers. In addition, the Company distributes these products through
CitiStreet Retirement Services and Citibank, N.A., also affiliates of the
Company.

The Company's business is significantly affected by movements in the U.S. equity
and fixed income credit markets. U.S. equity and credit market events can have
both positive and negative effects on the deposit, revenue and policy retention
performance of the business. A sustained weakness in the equity markets will
decrease revenues and earnings in variable products. Declines in credit quality
of issuers will have a negative effect on earnings. This statement is a
forward-looking statement within the meaning of the Private Securities
Litigation Reform Act. See "Forward-Looking Statements" on page 13.

                                       10

<PAGE>

                     THE TRAVELERS LIFE AND ANNUITY COMPANY

Net income for the second quarter 2003 was $25.2 million, up $5.8 million or
29.9% over the prior year quarter, and was $54.2 million for the six months
ended June 30, 2003, compared to $66.7 million in the same 2002 period. The
quarterly increase was primarily related to lower net-after-tax realized
investment losses, and a tax benefit related to an adjustment to the Dividends
Received Deduction (DRD) in 2003. Net income included realized investment losses
of $2.1 million and $12.8 million, for the three months ended June 30, 2003 and
2002, respectively, and included $4.3 million and $10.2 million for the six
months ended June 30, 2003 and 2002,respectively. The decreases in realized
losses were primarily the result of $19.9 million of after-tax impairments to
WorldCom Inc. investments during the 2002 second quarter. The DRD benefits of
$2.3 million and $8.8 million for the quarter and six months ended June 30, 2003
resulted in a 27% and 22% effective tax rate for the current year quarter and
six month period, respectively, compared to 35% in the prior year quarter and
six month period.

Net income before realized investment gains/(losses) was $27.3 million and $32.2
million for the second quarter, and was $58.5 million and $76.9 million for the
six months ended June 30, 2003 and 2002, respectively. These decreases were
driven by lower fixed income investment yields and higher amortization of
deferred acquisition costs (DAC), partially offset by increased business
volumes.

Revenue increases for both the quarter and six-month periods over prior year
were driven by net investment income (NII), which was $83.2 million in the
second quarter of 2003 compared to $76.2 million in the second quarter of 2002.
NII also increased $23.4 million or 16.3% to $166.8 million for the six months
ended June 30, 2003. The increases were due to a larger invested asset base
created from higher business volumes and favorable equity investment returns,
which were partially offset by investment yield deterioration in 2003 which
continued from already depressed 2002 levels. Fixed maturities returns suffered
from the lower rate environment and credit issues.

Insurance benefits and interest credited grew 16.5% to $74.9 million in the
second quarter of 2003, compared to $64.3 million in the prior year period. This
increase was primarily related to the volume growth in individual annuity and
universal life contractholder funds. The insurance benefits and interest
credited were also 15.5% higher for the six-month periods ended June 30, 2003
versus June 30, 2002.

Operating expenses increased in the three months ended June 30, 2003 over the
same period in 2002 due primarily to an $11.5 million increase in the
amortization of DAC. This DAC increase was the result of a higher amortization
rate implemented in fourth quarter 2002 resulting from the decrease in market
value of individual annuity account balances. Operating expenses were up 199.7%
for the six-month periods ended June 30, 2003 over June 30, 2002. This increase
was primarily related to the amortization of DAC, which was $65.5 million in
2003 versus $13.7 million in 2002. This DAC increase was related to the higher
amortization rate and a one-time $29.8 million reduction to DAC amortization in
the individual annuity business resulting from changes in underlying lapse and
interest rate assumptions during the first quarter of 2002.

The following table shows net written premiums and deposits by product line for
the quarters and six months ended June 30, 2003 and 2002. The majority of the
annuity business and a substantial portion of the life business written by the
Company are accounted for as investment contracts, such that the premiums are
considered deposits and are not included in revenues.

                                       11

<PAGE>

                     THE TRAVELERS LIFE AND ANNUITY COMPANY

PREMIUMS AND DEPOSITS ($ in millions)

<TABLE>
<CAPTION>
                                            THREE MONTHS ENDED        SIX MONTHS ENDED
                                                 JUNE 30,                 JUNE 30,
                                           2003           2002        2003       2002
                                          -------       --------     ------     -------
<S>                                       <C>           <C>          <C>        <C>
Premiums
Individual Life                           $     9       $     10     $   19     $    19
Other Annuity                                   1              1          2           2
                                          -------       --------     ------     -------
    Total Premiums                             10             11         21          21
                                          -------       --------     ------     -------
Deposits (1)
Individual Annuity                            519            767        902       1,517
Individual Life                               124            107        211         213
Other Annuity                                   1              1          2           2
                                          -------       --------     ------     -------
    Total Deposits                        $   644       $    875     $1,115     $ 1,732
                                          -------       --------     ------     -------
</TABLE>

(1)      Represents an operating statistic used for measuring business volumes,
         which management of the Company uses to manage the life insurance and
         annuities operations, and may not be comparable to similarly captioned
         measurements used by other life insurance companies.

Individual annuity deposits decreased 32% and 41% in the 2003 second quarter and
six month period, respectively, compared to the second quarter and six months of
2002. The decrease was driven by a decline in fixed annuity sales due to
competitive pressures and variable annuity sales due to current equity market
conditions. Individual annuity account balances were $11 billion and $10 billion
at June 30, 2003 and 2002, respectively. The increase over prior year June 30,
is reflective of good in-force policy retention.

The individual life deposits of $124 million increased $17 million in the second
quarter of 2003 over the prior year period, reflecting higher single premium
sales. These second quarter 2003 sales were offset by lower first quarter 2003
production creating level six-month results. Life insurance in force was $39
billion at June 30, 2003, up from $36 billion at December 31, 2002.

INSURANCE REGULATIONS

Risk-based capital requirements are used as minimum capital requirements by the
National Association of Insurance Commissioners (NAIC) and the states to
identify companies that merit further regulatory action. At December 31, 2002,
the Company had total adjusted capital in excess of amounts requiring any
regulatory action as defined by the NAIC.

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 Company does not
have surplus available to pay dividends to its parent in 2003 without prior
approval of the State of Connecticut Insurance Department. The Company did not
pay any dividends to its parent during the six months ended June 30, 2003 and
2002.

                                       12

<PAGE>

                     THE TRAVELERS LIFE AND ANNUITY COMPANY

OTHER DEVELOPMENTS

On May 28, 2003, the Jobs and Growth Tax Relief Reconciliation Act of 2003 was
enacted into law. This act makes various changes in individual tax rates. Most
significantly, the legislation extends the 15% maximum capital gains tax rate to
corporate dividends received by individuals, including dividends received by
mutual funds and passed through to mutual fund shareholders. The legislation
also lowers the capital gains tax rate and accelerates the individual income tax
rate reductions enacted in 2001. These changes could have a negative impact on
the demand for life and annuity products. This statement is a forward-looking
statement within the meaning of the Private Securities Litigation Reform Act.
See "Forward-Looking Statements" on this page.

FUTURE APPLICATION OF ACCOUNTING STANDARDS

See Note 2 of Notes to Condensed Financial Statements for a discussion of
recently issued accounting pronouncements.

FORWARD-LOOKING STATEMENTS

Certain of the statements contained herein that are not historical facts are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act. The Company's actual results may differ materially from
those included in the forward-looking statements. Forward-looking statements are
typically identified by the words "believe," "expect," "anticipate," "intend,"
"estimate," "may increase," "may fluctuate," and similar expressions or future
or conditional verbs such as "will," "should," "would," and "could." These
forward-looking statements involve risks and uncertainties including, but not
limited to, the resolution of legal proceedings.

                                       13

<PAGE>

                     THE TRAVELERS LIFE AND ANNUITY COMPANY

ITEM 4. CONTROLS AND PROCEDURES

DISCLOSURE CONTROLS AND PROCEDURES

The Company's management, with the participation of the Company's Chief
Executive Officer and Chief Financial Officer, has evaluated the effectiveness
of the Company's disclosure controls and procedures (as such term is defined in
Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as
amended ("Exchange Act")) as of the end of the period covered by this report.
Based on such evaluation, the Company's Chief Executive Officer and Chief
Financial Officer have concluded that, as of the end of such period, the
Company's disclosure controls and procedures are effective in recording,
processing, summarizing and reporting, on a timely basis, information required
to be disclosed by the Company in the reports that it files or submits under the
Exchange Act.

INTERNAL CONTROL OVER FINANCIAL REPORTING

There have not been any changes in the Company's internal control over financial
reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the
Exchange Act) during the fiscal quarter to which this report relates that have
materially affected, or are reasonably likely to materially affect, the
Company's internal control over financial reporting.

                                       14

<PAGE>

                     THE TRAVELERS LIFE AND ANNUITY COMPANY

                           PART II - OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) EXHIBITS.

<TABLE>
<CAPTION>
EXHIBIT NO.                           DESCRIPTION
----------                            -----------

<S>           <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.

31.01+        Certification of chief financial officer pursuant to Section 302
              of the Sarbanes-Oxley Act of 2002.

31.02+        Certification of chief executive officer pursuant to Section 302
              of the Sarbanes-Oxley Act of 2002.

32.01+        Certification pursuant to 18 U.S.C. Section 1350 as adopted
              pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
</TABLE>

(b) REPORTS ON FORM 8-K.

None.

-------------------------------
+Filed herewith

                                       15

<PAGE>

                     THE TRAVELERS LIFE AND ANNUITY COMPANY

                                   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 August 14, 2003              /s/ Glenn D. Lammey
                                  ----------------------------------------------
                                  Glenn D. Lammey
                                  Executive Vice President,
                                  Chief Financial Officer and Chief
                                  Accounting Officer
                                  (Principal Financial Officer and Principal
                                  Accounting Officer)

                                       16