-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TJA+WAhV8RD7MXk+/5XLZqU8WEf0eD1W4USIkuXNqlYgQXU7s+jK0/bfFp6ZJlxd RamrUfGRQlgSx7sgnrmKHA== 0000950144-96-000726.txt : 19960229 0000950144-96-000726.hdr.sgml : 19960229 ACCESSION NUMBER: 0000950144-96-000726 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960228 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: WRL SERIES LIFE ACCOUNT CENTRAL INDEX KEY: 0000778209 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04420 FILM NUMBER: 96527666 BUSINESS ADDRESS: STREET 1: 201 HIGHLAND AVE CITY: LARGO STATE: FL ZIP: 34640 BUSINESS PHONE: 813-587-1800 MAIL ADDRESS: STREET 1: 201 HIGHLAND AVENUE CITY: LARGO STATE: FL ZIP: 34640 N-30D 1 WRL LIFE ACCOUNT - ANNUAL REPORT 1 A N N U A L R E P O R T D E C E M B E R 3 1 , 1 9 9 5 --------------------------------------------- WRL SERIES LIFE ACCOUNT --------------------------------------------- WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO February 1996 ACC00003-A (2/96) 2 - -------------------------------------------------------------------------------- T A B L E O F C O N T E N T S - --------------------------------------------------------------------------------
PAGE Report of Independent Accountants..................... 1 WRL SERIES LIFE ACCOUNT Financial Statements: Money Market Sub-Account..................... 2 Bond Sub-Account............................. 4 Growth Sub-Account........................... 6 Short-to-Intermediate Government Sub-Account............................... 8 Global Sub-Account........................... 10 Equity-Income Sub-Account.................... 12 Emerging Growth Sub-Account.................. 14 Aggressive Growth Sub-Account................ 16 Balanced Sub-Account......................... 18 Utility Sub-Account.......................... 20 Tactical Asset Allocation Sub-Account........ 22 Notes to Financial Statements..................... 24
3 WRL SERIES LIFE ACCOUNT - -------------------------------------------------------------------------------- REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Directors of Western Reserve Life Assurance Co. of Ohio and Policyholders of the WRL Series Life Account In our opinion, the accompanying statements of assets, liabilities and equity accounts and the related statements of operations and of changes in equity accounts and the selected per unit data and ratios present fairly, in all material respects, the financial position of the Money Market, Bond, Growth, Short-to-Intermediate Government, Global, Equity-Income, Emerging Growth, Aggressive Growth, Balanced, Utility and Tactical Asset Allocation Sub-Accounts of the WRL Series Life Account (a separate account of Western Reserve Life Assurance Co. of Ohio, hereafter referred to as the "Life Account") at December 31, 1995, the results of each of their operations, the changes in each of their equity accounts and the selected per unit data and ratios for each of the periods indicated, in conformity with generally accepted accounting principles. These financial statements and selected per unit data and ratios (hereafter referred to as "financial statements") are the responsibility of the Life Account's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. PRICE WATERHOUSE LLP Kansas City, Missouri January 31, 1996 - -------------------------------------------------------------------------------- 1 4 WRL SERIES LIFE ACCOUNT MONEY MARKET SUB-ACCOUNT - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: DECEMBER 31, 1995 Investments, at net asset value: WRL Series Fund, Inc.: Money Market Portfolio (10,819,939.810 shares; cost $ 10,819,940)..................... $ 10,819,940 Accrued transfers from (to) depositor - net.......................... (61,316) ----------------- Total assets........................... 10,758,624 ----------------- LIABILITIES:................................. 0 ----------------- Total net assets....................... $ 10,758,624 =================== EQUITY ACCOUNTS: Policy Owners' equity: Money Market sub-account (725,394.862557 units; $ 14.831403 unit value)................ $ 10,758,624 ----------------- Total equity........................... $ 10,758,624 ===================
STATEMENT OF OPERATIONS
YEAR ENDED INVESTMENT INCOME: DECEMBER 31, 1995 Dividend income.......................... $ 478,782 Capital gain distributions............... 0 ----------------- 478,782 EXPENSES: Mortality and expense risk charges....... 81,372 ----------------- Net investment income (loss)........... 397,410 ----------------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions........................... 0 Change in unrealized appreciation (depreciation)......................... 0 ----------------- Net gain (loss) on investments......... 0 ----------------- Net increase (decrease) in equity accounts resulting from operations......................... $ 397,410 ===================
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
YEAR ENDED YEAR ENDED DECEMBER 31, 1995 DECEMBER 31, 1994 OPERATIONS: Net investment income (loss)........................................................... $ 397,410 $ 185,968 Net gain (loss) on investments......................................................... 0 0 ---------------- ----------------- Net increase (decrease) in equity accounts resulting from operations............................................................ 397,410 185,968 ---------------- ----------------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed).................................................... 3,139,280 6,263,945 ---------------- ----------------- Less cost of units redeemed: Administrative charges............................................................... 1,356,484 1,261,165 Policy loans......................................................................... 219,767 57,873 Surrender benefits................................................................... 899,893 409,880 Death benefits....................................................................... 7,670 562 ---------------- ----------------- 2,483,814 1,729,480 ---------------- ----------------- Increase (decrease) in equity accounts from capital unit transactions.......................................................... 655,466 4,534,465 ---------------- ----------------- Net increase (decrease) in equity accounts........................................... 1,052,876 4,720,433 EQUITY ACCOUNTS: Beginning of period.................................................................... 9,705,748 4,985,315 ---------------- ----------------- End of period.......................................................................... $ 10,758,624 $ 9,705,748 ================== ===================
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 2 5 WRL SERIES LIFE ACCOUNT MONEY MARKET SUB-ACCOUNT - -------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED
DECEMBER 31 ------------------------------------------------------------------------ 1995 1994 1993 1992 1991 -------- ------- ------- ------- ------- Accumulation unit value, beginning of period.... $ 14.19 $ 13.84 $ 13.63 $ 13.33 $ 12.78 Income from operations: Net investment income (loss)................ .64 .35 .21 .30 .55 Net realized and unrealized gain (loss) on investments................ .00 .00 .00 .00 .00 -------- ------- ------- ------- ------- Total income (loss) from operations....... .64 .35 .21 .30 .55 -------- ------- ------- ------- ------- Accumulation unit value, end of period.......... $ 14.83 $ 14.19 $ 13.84 $ 13.63 $ 13.33 ======== ======== ======== ======== ======== Total return.................................... 4.49% 2.58% 1.52% 2.24% 4.34% Ratios and supplemental data: Net assets at end of period (in thousands).... $ 10,759 $ 9,706 $ 4,985 $ 4,619 $ 4,042 Ratio of net investment income (loss) to average net assets....................... 4.37% 2.66% 1.51% 2.12% 4.28%
* The above table illustrates the change for a unit outstanding computed using average units outstanding throughout each period. The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 3 6 WRL SERIES LIFE ACCOUNT BOND SUB-ACCOUNT - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: DECEMBER 31, 1995 Investments, at net asset value: WRL Series Fund, Inc.: Bond Portfolio (886,633.291 shares; cost $ 9,906,273)...................... $ 10,059,038 Accrued transfers from (to) depositor - net.......................... 7,094 ----------------- Total assets........................... 10,066,132 ----------------- LIABILITIES:................................. 0 ----------------- Total net assets....................... $ 10,066,132 =================== EQUITY ACCOUNTS: Policy Owners' equity: Bond sub-account (511,648.226174 units; $ 19.673931 unit value)................ $ 10,066,132 ----------------- Total equity........................... $ 10,066,132 ===================
STATEMENT OF OPERATIONS
YEAR ENDED INVESTMENT INCOME: DECEMBER 31, 1995 Dividend income.......................... $ 531,010 Capital gain distributions............... 0 ----------------- 531,010 EXPENSES: Mortality and expense risk charges....... 71,033 ----------------- Net investment income (loss)........... 459,977 ----------------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions........................... (127,916) Change in unrealized appreciation (depreciation)......................... 1,208,073 ----------------- Net gain (loss) on investments......... 1,080,157 ----------------- Net increase (decrease) in equity accounts resulting from operations......................... $ 1,540,134 ===================
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
YEAR ENDED YEAR ENDED DECEMBER 31, 1995 DECEMBER 31, 1994 OPERATIONS: Net investment income (loss).......................................................... $ 459,977 $ 346,531 Net gain (loss) on investments........................................................ 1,080,157 (901,953) ----------------- ----------------- Net increase (decrease) in equity accounts resulting from operations........................................................... 1,540,134 (555,422) ----------------- ----------------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed)................................................... 3,749,029 678,317 ----------------- ----------------- Less cost of units redeemed: Administrative charges.............................................................. 916,494 595,277 Policy loans........................................................................ 197,829 57,084 Surrender benefits.................................................................. 357,384 194,018 Death benefits...................................................................... 10,202 2,326 ----------------- ----------------- 1,481,909 848,705 ----------------- ----------------- Increase (decrease) in equity accounts from capital unit transactions......................................................... 2,267,120 (170,388) ----------------- ----------------- Net increase (decrease) in equity accounts.......................................... 3,807,254 (725,810) EQUITY ACCOUNTS: Beginning of period................................................................... 6,258,878 6,984,688 ----------------- ----------------- End of period......................................................................... $ 10,066,132 $ 6,258,878 =================== ===================
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 4 7 WRL SERIES LIFE ACCOUNT BOND SUB-ACCOUNT - -------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED
DECEMBER 31 ------------------------------------------------------------------------ 1995 1994 1993 1992 1991 -------- ------- ------- ------- ------- Accumulation unit value, beginning of period.... $ 16.14 $ 17.50 $ 15.57 $ 14.68 $ 12.48 Income from operations: Net investment income (loss)................ 1.05 .89 2.11 1.00 .48 Net realized and unrealized gain (loss) on investments................ 2.48 (2.25) (.18) (.11) 1.72 -------- ------- ------- ------- ------- Total income (loss) from operations....... 3.53 (1.36) 1.93 .89 2.20 -------- ------- ------- ------- ------- Accumulation unit value, end of period.......... $ 19.67 $ 16.14 $ 17.50 $ 15.57 $ 14.68 ========= ======== ======== ======== ======== Total return.................................... 21.89% (7.77)% 12.40% 6.08% 17.63% Ratios and supplemental data: Net assets at end of period (in thousands).... $ 10,066 $ 6,259 $ 6,985 $ 4,558 $ 3,055 Ratio of net investment income (loss) to average net assets....................... 5.80% 5.57% 12.92% 6.69% 3.59%
* The above table illustrates the change for a unit outstanding computed using average units outstanding throughout each period. The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 5 8 WRL SERIES LIFE ACCOUNT GROWTH SUB-ACCOUNT - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: DECEMBER 31, 1995 Investments, at net asset value: WRL Series Fund, Inc.: Growth Portfolio (8,285,195.096 shares; cost $ 202,613,364).................. $ 262,315,405 Accrued transfers from (to) depositor - net........................ 151,700 ----------------- Total assets......................... 262,467,105 ----------------- LIABILITIES:............................... 0 ----------------- Total net assets..................... $ 262,467,105 ===================== EQUITY ACCOUNTS: Policy Owners' equity: Growth sub-account (6,329,021.828348 units; $ 41.470406 unit value).............. $ 262,467,105 ----------------- Total equity......................... $ 262,467,105 =====================
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, INVESTMENT INCOME: 1995 Dividend income......................... $ 1,182,462 Capital gain distributions.............. 23,952,283 ---------------- 25,134,745 EXPENSES: Mortality and expense risk charges...... 1,884,365 ---------------- Net investment income (loss).......... 23,250,380 ---------------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions.......................... 5,296,297 Change in unrealized appreciation (depreciation)........................ 49,505,485 ---------------- Net gain (loss) on investments........ 54,801,782 ---------------- Net increase (decrease) in equity accounts resulting from operations........................ $ 78,052,162 ====================
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
YEAR ENDED DECEMBER 31, YEAR ENDED 1995 DECEMBER 31, 1994 OPERATIONS: Net investment income (loss)........................................................... $ 23,250,380 $ 242,685 Net gain (loss) on investments......................................................... 54,801,782 (16,096,859) ---------------- ----------------- Net increase (decrease) in equity accounts resulting from operations............................................................ 78,052,162 (15,854,174) ---------------- ----------------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed).................................................... 61,850,933 37,295,869 ---------------- ----------------- Less cost of units redeemed: Administrative charges............................................................... 23,714,204 20,971,223 Policy loans......................................................................... 5,518,596 2,955,838 Surrender benefits................................................................... 8,982,170 5,498,322 Death benefits....................................................................... 711,078 282,972 ---------------- ----------------- 38,926,048 29,708,355 ---------------- ----------------- Increase (decrease) in equity accounts from capital unit transactions.......................................................... 22,924,885 7,587,514 ---------------- ----------------- Net increase (decrease) in equity accounts........................................... 100,977,047 (8,266,660) EQUITY ACCOUNTS: Beginning of period.................................................................... 161,490,058 169,756,718 ---------------- ----------------- End of period.......................................................................... $ 262,467,105 $ 161,490,058 ================== ===================
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 6 9 WRL SERIES LIFE ACCOUNT GROWTH SUB-ACCOUNT - -------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED
DECEMBER 31 --------------------------------------------------------------- 1995 1994 1993 1992 --------- --------- --------- --------- Accumulation unit value, beginning of period.... $ 28.44 $ 31.30 $ 30.37 $ 29.95 Income from operations: Net investment income (loss)................ 3.89 .04 .46 1.09 Net realized and unrealized gain (loss) on investments................ 9.14 (2.90) .47 (.67) --------- --------- --------- --------- Total income (loss) from operations....... 13.03 (2.86) .93 .42 --------- --------- --------- --------- Accumulation unit value, end of period.......... $ 41.47 $ 28.44 $ 31.30 $ 30.37 ========== ========== ========== ========== Total return.................................... 45.81% (9.13)% 3.06% 1.41% Ratios and supplemental data: Net assets at end of period (in thousands).... $ 262,467 $ 161,490 $ 169,757 $ 146,053 Ratio of net investment income (loss) to average net assets....................... 11.05% .16% 1.56% 3.84% 1991 --------- Accumulation unit value, beginning of period.... $ 18.91 Income from operations: Net investment income (loss)................ 1.72 Net realized and unrealized gain (loss) on investments................ 9.32 --------- Total income (loss) from operations....... 11.04 --------- Accumulation unit value, end of period.......... $ 29.95 ========== Total return.................................... 58.37% Ratios and supplemental data: Net assets at end of period (in thousands).... $ 111,375 Ratio of net investment income (loss) to average net assets....................... 7.14%
* The above table illustrates the change for a unit outstanding computed using average units outstanding throughout each period. The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 7 10 WRL SERIES LIFE ACCOUNT SHORT-TO-INTERMEDIATE GOVERNMENT SUB-ACCOUNT - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: DECEMBER 31, 1995 Investments, at net asset value: WRL Series Fund, Inc.: Short-to-Intermediate Government Portfolio (142,006.075 shares; cost $ 1,440,621)...................... $ 1,479,151 Accrued transfers from (to) depositor - net.......................... 38,834 ----------------- Total assets........................... 1,517,985 ----------------- LIABILITIES:................................. 0 ----------------- Total net assets....................... $ 1,517,985 =================== EQUITY ACCOUNTS: Policy Owners' equity: Short-to-Intermediate Government sub-account (131,385.750734 units; $ 11.553647 unit value)................ $ 1,517,985 ----------------- Total equity........................... $ 1,517,985 ===================
STATEMENT OF OPERATIONS
YEAR ENDED INVESTMENT INCOME: DECEMBER 31, 1995 Dividend income.......................... $ 72,133 Capital gain distributions............... 0 ----------------- 72,133 EXPENSES: Mortality and expense risk charges....... 10,047 ----------------- Net investment income (loss)........... 62,086 ----------------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions........................... 2,109 Change in unrealized appreciation (depreciation)......................... 66,278 ----------------- Net gain (loss) on investments......... 68,387 ----------------- Net increase (decrease) in equity accounts resulting from operations......................... $ 130,473 ===================
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
YEAR ENDED YEAR ENDED DECEMBER 31, 1995 DECEMBER 31, 1994 OPERATIONS: Net investment income (loss).......................................................... $ 62,086 $ 37,124 Net gain (loss) on investments........................................................ 68,387 (49,327) ----------------- ----------------- Net increase (decrease) in equity accounts resulting from operations........................................................... 130,473 (12,203) ----------------- ----------------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed)................................................... 679,242 515,009 ----------------- ----------------- Less cost of units redeemed: Administrative charges.............................................................. 141,954 108,685 Policy loans........................................................................ 52,521 3,307 Surrender benefits.................................................................. 41,967 11,985 Death benefits...................................................................... 144 15,256 ----------------- ----------------- 236,586 139,233 ----------------- ----------------- Increase (decrease) in equity accounts from capital unit transactions......................................................... 442,656 375,776 ----------------- ----------------- Net increase (decrease) in equity accounts.......................................... 573,129 363,573 Depositor's equity contribution (redemption).......................................... 0 (826,666) EQUITY ACCOUNTS: Beginning of period................................................................... 944,856 1,407,949 ----------------- ----------------- End of period......................................................................... $ 1,517,985 $ 944,856 =================== ===================
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 8 11 WRL SERIES LIFE ACCOUNT SHORT-TO-INTERMEDIATE GOVERNMENT SUB-ACCOUNT - -------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED
DECEMBER 31 ------------------------------------------------------- 1995 1994 1993 1992+ ------- ------- ------- ------- Accumulation unit value, beginning of period.... $ 10.27 $ 10.40 $ 10.04 $ 10.00 Income from operations: Net investment income (loss)................ .61 .40 .14 .01 Net realized and unrealized gain (loss) on investments................ .67 (.53) .22 .03 ------- ------- ------- ------- Total income (loss) from operations....... 1.28 (.13) .36 .04 ------- ------- ------- ------- Accumulation unit value, end of period.......... $ 11.55 $ 10.27 $ 10.40 $ 10.04 ======== ======== ======== ======== Total return.................................... 12.53% (1.32)% 3.64% .38% Ratios and supplemental data: Net assets at end of period (in thousands).... $ 1,518 $ 945 $ 1,408 $ 803 Ratio of net investment income (loss) to average net assets....................... 5.53% 4.06% 1.39% .16%
* The above table illustrates the change for a unit outstanding computed using average units outstanding throughout each period. + The inception date of this sub-account was December 3, 1992. The total return and ratio of net investment income to average net assets are not annualized. The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 9 12 WRL SERIES LIFE ACCOUNT GLOBAL SUB-ACCOUNT - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: DECEMBER 31, 1995 Investments, at net asset value: WRL Series Fund, Inc.: Global Portfolio (2,386,494.041 shares; cost $ 33,426,846)..................... $ 37,028,035 Accrued transfers from (to) depositor - net.......................... 20,662 ----------------- Total assets........................... 37,048,697 ----------------- LIABILITIES:................................. 0 ----------------- Total net assets....................... $ 37,048,697 =================== EQUITY ACCOUNTS: Policy Owners' equity: Global sub-account (3,080,374.719544 units; $ 11.949748 unit value)................ $ 36,809,702 Depositors' equity: Global sub-account (20,000.000000 units; $ 11.949748 unit value)................ 238,995 ----------------- Total equity........................... $ 37,048,697 ===================
STATEMENT OF OPERATIONS
YEAR ENDED INVESTMENT INCOME: DECEMBER 31, 1995 Dividend income.......................... $ 37,966 Capital gain distributions............... 1,399,851 ----------------- 1,437,817 EXPENSES: Mortality and expense risk charges....... 250,072 ----------------- Net investment income (loss)........... 1,187,745 ----------------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions........................... 153,618 Change in unrealized appreciation (depreciation)......................... 4,472,385 ----------------- Net gain (loss) on investments......... 4,626,003 ----------------- Net increase (decrease) in equity accounts resulting from operations......................... $ 5,813,748 ===================
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
YEAR ENDED PERIOD ENDED DECEMBER 31, 1995 DECEMBER 31, 1994* OPERATIONS: Net investment income (loss).......................................................... $ 1,187,745 $ 763,643 Net gain (loss) on investments........................................................ 4,626,003 (875,349) ----------------- ----------------- Net increase (decrease) in equity accounts resulting from operations........................................................... 5,813,748 (111,706) ----------------- ----------------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed)................................................... 15,012,786 23,149,750 ----------------- ----------------- Less cost of units redeemed: Administrative charges.............................................................. 4,017,781 1,181,608 Policy loans........................................................................ 666,264 142,084 Surrender benefits.................................................................. 721,584 234,323 Death benefits...................................................................... 44,234 8,003 ----------------- ----------------- 5,449,863 1,566,018 ----------------- ----------------- Increase (decrease) in equity accounts from capital unit transactions......................................................... 9,562,923 21,583,732 ----------------- ----------------- Net increase (decrease) in equity accounts.......................................... 15,376,671 21,472,026 Depositor's equity contribution (redemption).......................................... 0 200,000 EQUITY ACCOUNTS: Beginning of period................................................................... 21,672,026 0 ----------------- ----------------- End of period......................................................................... $ 37,048,697 $ 21,672,026 =================== ===================
* The inception date of this sub-account was March 1, 1994. The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 10 13 WRL SERIES LIFE ACCOUNT GLOBAL SUB-ACCOUNT - -------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED
DECEMBER 31 ---------------------------- 1995 1994+ -------- ----------- Accumulation unit value, beginning of period.... $ 9.80 $ 10.00 Income from operations: Net investment income (loss)................ .45 .71 Net realized and unrealized gain (loss) on investments................ 1.70 (.91) -------- ----------- Total income (loss) from operations....... 2.15 (.20) -------- ----------- Accumulation unit value, end of period.......... $ 11.95 $ 9.80 ========= ============= Total return.................................... 21.96% (2.02)% Ratios and supplemental data: Net assets at end of period (in thousands).... $ 37,049 $ 21,672 Ratio of net investment income (loss) to average net assets....................... 4.25% 7.39%
* The above table illustrates the change for a unit outstanding computed using average units outstanding throughout each period. + The inception date of this sub-account was March 1, 1994. The total return and ratio of net investment income to average net assets are not annualized. The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 11 14 WRL SERIES LIFE ACCOUNT EQUITY-INCOME SUB-ACCOUNT - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: DECEMBER 31, 1995 Investments, at net asset value: WRL Series Fund, Inc.: Equity-Income Portfolio (3,079,777.685 shares; cost $ 35,168,616)..................... $ 39,619,606 Accrued transfers from (to) depositor - net.......................... 28,669 ----------------- Total assets........................... 39,648,275 ----------------- LIABILITIES:................................. 0 ----------------- Total net assets....................... $ 39,648,275 =================== EQUITY ACCOUNTS: Policy Owners' equity: Equity-Income sub-account (2,885,803.576534 units; $ 13.739076 unit value)................ $ 39,648,275 ----------------- Total equity........................... $ 39,648,275 ===================
STATEMENT OF OPERATIONS
YEAR ENDED INVESTMENT INCOME: DECEMBER 31, 1995 Dividend income.......................... $ 1,009,870 Capital gain distributions............... 1,034,053 ----------------- 2,043,923 EXPENSES: Mortality and expense risk charges....... 287,834 ----------------- Net investment income (loss)........... 1,756,089 ----------------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions........................... 220,725 Change in unrealized appreciation (depreciation)......................... 4,771,750 ----------------- Net gain (loss) on investments......... 4,992,475 ----------------- Net increase (decrease) in equity accounts resulting from operations......................... $ 6,748,564 ===================
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
YEAR ENDED YEAR ENDED DECEMBER 31, 1995 DECEMBER 31, 1994 OPERATIONS: Net investment income (loss).......................................................... $ 1,756,089 $ 347,798 Net gain (loss) on investments........................................................ 4,992,475 (596,517) ----------------- ----------------- Net increase (decrease) in equity accounts resulting from operations........................................................... 6,748,564 (248,719) ----------------- ----------------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed)................................................... 14,236,727 13,516,053 ----------------- ----------------- Less cost of units redeemed: Administrative charges.............................................................. 3,380,854 1,893,532 Policy loans........................................................................ 657,750 296,848 Surrender benefits.................................................................. 918,863 406,848 Death benefits...................................................................... 28,153 19,871 ----------------- ----------------- 4,985,620 2,617,099 ----------------- ----------------- Increase (decrease) in equity accounts from capital unit transactions......................................................... 9,251,107 10,898,954 ----------------- ----------------- Net increase (decrease) in equity accounts.......................................... 15,999,671 10,650,235 Depositor's equity contribution (redemption).......................................... 0 (344,138) EQUITY ACCOUNTS: Beginning of period................................................................... 23,648,604 13,342,507 ----------------- ----------------- End of period......................................................................... $ 39,648,275 $ 23,648,604 =================== ===================
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 12 15 WRL SERIES LIFE ACCOUNT EQUITY-INCOME SUB-ACCOUNT - -------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED
DECEMBER 31 ------------------------------------------ 1995 1994 1993+ -------- -------- -------- Accumulation unit value, beginning of period.... $ 11.12 $ 11.28 $ 10.00 Income from operations: Net investment income (loss)................ .68 .18 .19 Net realized and unrealized gain (loss) on investments................ 1.94 (.34) 1.09 -------- -------- -------- Total income (loss) from operations....... 2.62 (.16) 1.28 -------- -------- -------- Accumulation unit value, end of period.......... $ 13.74 $ 11.12 $ 11.28 ========= ========= ========= Total return.................................... 23.55% (1.42)% 12.81% Ratios and supplemental data: Net assets at end of period (in thousands).... $ 39,648 $ 23,649 $ 13,343 Ratio of net investment income (loss) to average net assets....................... 5.47% 1.93% 1.89%
* The above table illustrates the change for a unit outstanding computed using average units outstanding throughout each period. + The inception date of this sub-account was March 1, 1993. The total return and ratio of net investment income to average net assets are not annualized. The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 13 16 WRL SERIES LIFE ACCOUNT EMERGING GROWTH SUB-ACCOUNT - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: DECEMBER 31, 1995 Investments, at net asset value: WRL Series Fund, Inc.: Emerging Growth Portfolio (4,177,036.054 shares; cost $ 53,301,177)..................... $ 67,854,423 Accrued transfers from (to) depositor - net.......................... 50,530 ----------------- Total assets........................... 67,904,953 ----------------- LIABILITIES:................................. 0 ----------------- Total net assets....................... $ 67,904,953 =================== EQUITY ACCOUNTS: Policy Owners' equity: Emerging Growth sub-account (4,100,892.510689 units; $ 16.558579 unit value)................ $ 67,904,953 ----------------- Total equity........................... $ 67,904,953 ===================
STATEMENT OF OPERATIONS
YEAR ENDED INVESTMENT INCOME: DECEMBER 31, 1995 Dividend income.......................... $ 10,599 Capital gain distributions............... 2,799,377 ----------------- 2,809,976 EXPENSES: Mortality and expense risk charges....... 453,072 ----------------- Net investment income (loss)........... 2,356,904 ----------------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions........................... 276,206 Change in unrealized appreciation (depreciation)......................... 15,904,664 ----------------- Net gain (loss) on investments......... 16,180,870 ----------------- Net increase (decrease) in equity accounts resulting from operations......................... $ 18,537,774 ===================
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
YEAR ENDED YEAR ENDED DECEMBER 31, 1995 DECEMBER 31, 1994 OPERATIONS: Net investment income (loss).......................................................... $ 2,356,904 $ (242,847) Net gain (loss) on investments........................................................ 16,180,870 (2,055,599) ----------------- ----------------- Net increase (decrease) in equity accounts resulting from operations........................................................... 18,537,774 (2,298,446) ----------------- ----------------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed)................................................... 21,556,186 25,803,270 ----------------- ----------------- Less cost of units redeemed: Administrative charges.............................................................. 5,846,452 3,746,668 Policy loans........................................................................ 1,387,434 725,423 Surrender benefits.................................................................. 1,602,690 533,353 Death benefits...................................................................... 38,971 42,065 ----------------- ----------------- 8,875,547 5,047,509 ----------------- ----------------- Increase (decrease) in equity accounts from capital unit transactions......................................................... 12,680,639 20,755,761 ----------------- ----------------- Net increase (decrease) in equity accounts.......................................... 31,218,413 18,457,315 Depositor's equity contribution (redemption).......................................... 0 (390,327) EQUITY ACCOUNTS: Beginning of period................................................................... 36,686,540 18,619,552 ----------------- ----------------- End of period......................................................................... $ 67,904,953 $ 36,686,540 =================== ===================
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 14 17 WRL SERIES LIFE ACCOUNT EMERGING GROWTH SUB-ACCOUNT - -------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED
DECEMBER 31 ------------------------------------------ 1995 1994 1993+ -------- -------- -------- Accumulation unit value, beginning of period.... $ 11.38 $ 12.40 $ 10.00 Income from operations: Net investment income (loss)................ .65 (.09) (.09) Net realized and unrealized gain (loss) on investments................ 4.53 (.93) 2.49 -------- -------- -------- Total income (loss) from operations....... 5.18 (1.02) 2.40 -------- -------- -------- Accumulation unit value, end of period.......... $ 16.56 $ 11.38 $ 12.40 ========= ========= ========= Total return.................................... 45.49% (8.18)% 23.96% Ratios and supplemental data: Net assets at end of period (in thousands).... $ 67,905 $ 36,687 $ 18,620 Ratio of net investment income (loss) to average net assets....................... 4.66% (.86)% (.77)%
* The above table illustrates the change for a unit outstanding computed using average units outstanding throughout each period. + The inception date of this sub-account was March 1, 1993. The total return and ratio of net investment income to average net assets are not annualized. The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 15 18 WRL SERIES LIFE ACCOUNT AGGRESSIVE GROWTH SUB-ACCOUNT - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: DECEMBER 31, 1995 Investments, at net asset value: WRL Series Fund, Inc.: Aggressive Growth Portfolio (2,477,941.266 shares; cost $ 29,816,384)................... $ 32,833,608 Accrued transfers from (to) depositor - net........................ 70,361 ----------------- Total assets......................... 32,903,969 ----------------- LIABILITIES:............................... 0 ----------------- Total net assets..................... $ 32,903,969 ===================== EQUITY ACCOUNTS: Policy Owners' equity: Aggressive Growth sub-account (2,450,804.260823 units; $ 13.425784 unit value).............. $ 32,903,969 ----------------- Total equity......................... $ 32,903,969 =====================
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, INVESTMENT INCOME: 1995 Dividend income......................... $ 103 Capital gain distributions.............. 866,971 ---------------- 867,074 EXPENSES: Mortality and expense risk charges...... 203,080 ---------------- Net investment income (loss).......... 663,994 ---------------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions.......................... 1,785,515 Change in unrealized appreciation (depreciation)........................ 2,638,835 ---------------- Net gain (loss) on investments........ 4,424,350 ---------------- Net increase (decrease) in equity accounts resulting from operations........................ $ 5,088,344 ====================
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
YEAR ENDED PERIOD ENDED DECEMBER 31, DECEMBER 31, 1995 1994* OPERATIONS: Net investment income (loss)........................................................... $ 663,994 $ (27,542) Net gain (loss) on investments......................................................... 4,424,350 384,517 ---------------- ----------------- Net increase (decrease) in equity accounts resulting from operations............................................................ 5,088,344 356,975 ---------------- ----------------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed).................................................... 23,169,917 8,797,727 ---------------- ----------------- Less cost of units redeemed: Administrative charges............................................................... 2,568,298 379,087 Policy loans......................................................................... 627,821 72,785 Surrender benefits................................................................... 712,307 48,513 Death benefits....................................................................... 80,922 4,971 ---------------- ----------------- 3,989,348 505,356 ---------------- ----------------- Increase (decrease) in equity accounts from capital unit transactions.......................................................... 19,180,569 8,292,371 ---------------- ----------------- Net increase (decrease) in equity accounts........................................... 24,268,913 8,649,346 Depositor's equity contribution (redemption)........................................... (274,290) 260,000 EQUITY ACCOUNTS: Beginning of period.................................................................... 8,909,346 0 ---------------- ----------------- End of period.......................................................................... $ 32,903,969 $ 8,909,346 ================== ===================
* The inception date of this sub-account was March 1, 1994. The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 16 19 WRL SERIES LIFE ACCOUNT AGGRESSIVE GROWTH SUB-ACCOUNT - -------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED
DECEMBER 31 ---------------------------- 1995 1994+ -------- ----------- Accumulation unit value, beginning of period.... $ 9.82 $ 10.00 Income from operations: Net investment income (loss)................ .37 (.06) Net realized and unrealized gain (loss) on investments................ 3.24 (.12) -------- ----------- Total income (loss) from operations....... 3.61 (.18) -------- ----------- Accumulation unit value, end of period.......... $ 13.43 $ 9.82 ========= ============= Total return.................................... 36.79% (1.85)% Ratios and supplemental data: Net assets at end of period (in thousands).... $ 32,904 $ 8,909 Ratio of net investment income (loss) to average net assets....................... 2.93% (.60)%
* The above table illustrates the change for a unit outstanding computed using average units outstanding throughout each period. + The inception date of this sub-account was March 1, 1994. The total return and ratio of net investment income to average net assets are not annualized. The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 17 20 WRL SERIES LIFE ACCOUNT BALANCED SUB-ACCOUNT - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: DECEMBER 31, 1995 Investments, at net asset value: WRL Series Fund, Inc.: Balanced Portfolio (356,742.991 shares; cost $ 3,481,188)...................... $ 3,793,788 Accrued transfers from (to) depositor - net.......................... 1,606 ----------------- Total assets........................... 3,795,394 ----------------- LIABILITIES:................................. 0 ----------------- Total net assets....................... $ 3,795,394 =================== EQUITY ACCOUNTS: Policy Owners' equity: Balanced sub-account (321,143.504151 units; $ 11.125506 unit value)................ $ 3,572,884 Depositors' equity: Balanced sub-account (20,000.000000 units; $ 11.125506 unit value)................ 222,510 ----------------- Total equity........................... $ 3,795,394 ===================
STATEMENT OF OPERATIONS
YEAR ENDED INVESTMENT INCOME: DECEMBER 31, 1995 Dividend income.......................... $ 128,272 Capital gain distributions............... 0 ----------------- 128,272 EXPENSES: Mortality and expense risk charges....... 25,637 ----------------- Net investment income (loss)........... 102,635 ----------------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions........................... (6,199) Change in unrealized appreciation (depreciation)......................... 407,748 ----------------- Net gain (loss) on investments......... 401,549 ----------------- Net increase (decrease) in equity accounts resulting from operations......................... $ 504,184 ===================
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
YEAR ENDED PERIOD ENDED DECEMBER 31, 1995 DECEMBER 31, 1994* OPERATIONS: Net investment income (loss).......................................................... $ 102,635 $ 30,401 Net gain (loss) on investments........................................................ 401,549 (115,505) ----------------- ----------------- Net increase (decrease) in equity accounts resulting from operations........................................................... 504,184 (85,104) ----------------- ----------------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed)................................................... 1,545,514 2,131,962 ----------------- ----------------- Less cost of units redeemed: Administrative charges.............................................................. 327,290 84,481 Policy loans........................................................................ 29,025 0 Surrender benefits.................................................................. 27,726 15,378 Death benefits...................................................................... 14,811 2,451 ----------------- ----------------- 398,852 102,310 ----------------- ----------------- Increase (decrease) in equity accounts from capital unit transactions......................................................... 1,146,662 2,029,652 ----------------- ----------------- Net increase (decrease) in equity accounts.......................................... 1,650,846 1,944,548 Depositor's equity contribution (redemption).......................................... 0 200,000 EQUITY ACCOUNTS: Beginning of period................................................................. 2,144,548 0 ----------------- ----------------- End of period....................................................................... $ 3,795,394 $ 2,144,548 =================== ===================
* The inception date of this sub-account was March 1, 1994. The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 18 21 WRL SERIES LIFE ACCOUNT BALANCED SUB-ACCOUNT - -------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED
DECEMBER 31 ----------------------- 1995 1994+ ------- ------- Accumulation unit value, beginning of period.... $ 9.37 $ 10.00 Income from operations: Net investment income (loss)................ .37 .22 Net realized and unrealized gain (loss) on investments................ 1.39 (.85) ------- ------- Total income (loss) from operations....... 1.76 (.63) ------- ------- Accumulation unit value, end of period.......... $ 11.13 $ 9.37 ======== ======== Total return.................................... 18.73% (6.29)% Ratios and supplemental data: Net assets at end of period (in thousands).... $ 3,795 $ 2,145 Ratio of net investment income (loss) to average net assets....................... 3.59% 2.55%
* The above table illustrates the change for a unit outstanding computed using average units outstanding throughout each period. + The inception date of this sub-account was March 1, 1994. The total return and ratio of net investment income to average net assets are not annualized. The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 19 22 WRL SERIES LIFE ACCOUNT UTILITY SUB-ACCOUNT - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: DECEMBER 31, 1995 Investments, at net asset value: WRL Series Fund, Inc.: Utility Portfolio (236,391.086 shares; cost $ 2,384,572)...................... $ 2,629,535 Accrued transfers from (to) depositor - net.......................... 1,547 ----------------- Total assets........................... 2,631,082 ----------------- LIABILITIES:................................. 0 ----------------- Total net assets....................... $ 2,631,082 =================== EQUITY ACCOUNTS: Policy Owners' equity: Utility sub-account (203,453.934332 units; $ 11.774605 unit value)................ $ 2,395,590 Depositors' equity: Utility sub-account (20,000.000000 units; $ 11.774605 unit value)................ 235,492 ----------------- Total equity........................... $ 2,631,082 ===================
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, INVESTMENT INCOME: 1995 Dividend income......................... $ 86,266 Capital gain distributions.............. 19,740 ---------------- 106,006 EXPENSES: Mortality and expense risk charges...... 17,372 ---------------- Net investment income (loss).......... 88,634 ---------------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions.......................... 44,646 Change in unrealized appreciation (depreciation)........................ 291,882 ---------------- Net gain (loss) on investments........ 336,528 ---------------- Net increase (decrease) in equity accounts resulting from operations........................ $ 425,162 ====================
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
YEAR ENDED PERIOD ENDED DECEMBER 31, DECEMBER 31, 1995 1994* OPERATIONS: Net investment income (loss)........................................................... $ 88,634 $ 23,434 Net gain (loss) on investments......................................................... 336,528 (58,002) ---------------- ----------------- Net increase (decrease) in equity accounts resulting from operations............................................................ 425,162 (34,568) ---------------- ----------------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed).................................................... 1,368,262 1,102,522 ---------------- ----------------- Less cost of units redeemed: Administrative charges............................................................... 221,419 42,870 Policy loans......................................................................... 26,862 0 Surrender benefits................................................................... 126,576 6,295 Death benefits....................................................................... 2,896 3,378 ---------------- ----------------- 377,753 52,543 ---------------- ----------------- Increase (decrease) in equity accounts from capital unit transactions.......................................................... 990,509 1,049,979 ---------------- ----------------- Net increase (decrease) in equity accounts........................................... 1,415,671 1,015,411 Depositor's equity contribution (redemption)........................................... 0 200,000 EQUITY ACCOUNTS: Beginning of period.................................................................... 1,215,411 0 ---------------- ----------------- End of period.......................................................................... $ 2,631,082 $ 1,215,411 ================== ===================
* The inception date of this sub-account was March 1, 1994. The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 20 23 WRL SERIES LIFE ACCOUNT UTILITY SUB-ACCOUNT - -------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED
DECEMBER 31 --------------------------- 1995 1994+ ------- ----------- Accumulation unit value, beginning of period.... $ 9.49 $ 10.00 Income from operations: Net investment income (loss)................ .49 .29 Net realized and unrealized gain (loss) on investment................. 1.79 (.80) ------- ----------- Total income (loss) from operations....... 2.28 (.51) ------- ----------- Accumulation unit value, end of period.......... $11.77 $ 9.49 ======== ============= Total return.................................... 24.14 % (5.15)% Ratios and supplemental data: Net assets at end of period (in thousands).... $2,631 $ 1,215 Ratio of net investment income (loss) to average net assets....................... 4.57 % 3.09%
* The above table illustrates the change for a unit outstanding computed using average units outstanding throughout each period. + The inception date for this sub-account was March 1, 1994. The total return and ratio of net investment income to average net assets are not annualized. The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 21 24 WRL SERIES LIFE ACCOUNT TACTICAL ASSET ALLOCATION SUB-ACCOUNT - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: DECEMBER 31, 1995 Investments, at net asset value: WRL Series Fund, Inc.: Tactical Asset Allocation Portfolio (822,390.362 shares; cost $ 8,835,438)...................... $ 9,451,157 Accrued transfers from (to) depositor - net.......................... (5,300) ----------------- Total assets........................... 9,445,857 ----------------- LIABILITIES:................................. 0 ----------------- Total net assets....................... $ 9,445,857 =================== EQUITY ACCOUNTS: Policy Owners' equity: Tactical Asset Allocation sub-account (793,585.197167 units; $ 11.902763 unit value)................ $ 9,445,857 ----------------- Total equity........................... $ 9,445,857 ===================
STATEMENT OF OPERATIONS
PERIOD ENDED INVESTMENT INCOME: DECEMBER 31, 1995* Dividend income......................... $ 193,985 Capital gain distributions.............. 171,580 ------------------ 365,565 EXPENSES: Mortality and expense risk charges...... 51,394 ------------------ Net investment income (loss).......... 314,171 ------------------ Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions.......................... 118,155 Change in unrealized appreciation (depreciation)........................ 615,719 ------------------ Net gain (loss) on investments........ 733,874 ------------------ Net increase (decrease) in equity accounts resulting from operations........................ $ 1,048,045 ====================
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
PERIOD ENDED DECEMBER 31, 1995* OPERATIONS: Net investment income (loss)................................................................................. $ 314,171 Net gain (loss) on investments............................................................................... 733,874 ------------------ Net increase (decrease) in equity accounts resulting from operations.................................................................................. 1,048,045 ------------------ EQUITY TRANSACTIONS: Proceeds from units sold (redeemed).......................................................................... 9,081,189 ------------------ Less cost of units redeemed: Administrative charges..................................................................................... 434,848 Policy loans............................................................................................... 145,685 Surrender benefits......................................................................................... 70,630 Death benefits............................................................................................. 22,440 ------------------ 673,603 ------------------ Increase (decrease) in equity accounts from capital unit transactions................................................................................ 8,407,586 ------------------ Net increase (decrease) in equity accounts................................................................. 9,455,631 Depositor's equity contribution (redemption)................................................................. (9,774) EQUITY ACCOUNTS: Beginning of period.......................................................................................... 0 ------------------ End of period................................................................................................ $ 9,445,857 ====================
* The inception of this sub-account was January 3, 1995. The notes to the financial statements, are an integral part of this report. - -------------------------------------------------------------------------------- 22 25 WRL SERIES LIFE ACCOUNT TACTICAL ASSET ALLOCATION SUB-ACCOUNT - -------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED
DECEMBER 31 ----------- 1995+ ----------- Accumulation unit value, beginning of period................. $ 10.00 Income from operations: Net investment income (loss)............................. .61 Net realized and unrealized gain (loss) on investments............................. 1.29 ----------- Total income (loss) from operations.................... 1.90 ----------- Accumulation unit value, end of period....................... $ 11.90 ============= Total return................................................. 19.03% Ratios and supplemental data: Net assets at end of period (in thousands)................. $ 9,446 Ratio of net investment income (loss) to average net assets.................................... 5.47%
* The above table illustrates the change for a unit outstanding computed using average units outstanding throughout each period. + The inception date of this sub-account was January 3, 1995. The total return and ratio of net investment income to average net assets are not annualized. The notes to the financial statements, are an integral part of this report. - -------------------------------------------------------------------------------- 23 26 WRL SERIES LIFE ACCOUNT NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- DECEMBER 31, 1995 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The WRL Series Life Account (the "Life Account") was established as a variable life insurance separate account of Western Reserve Life Assurance Co. of Ohio ("WRL") and is registered as a unit investment trust ("Trust") under the Investment Company Act of 1940, as amended. The Life Account contains eleven investment options referred to as sub-accounts. Each sub-account invests in the corresponding portfolio of the WRL Series Fund, Inc. (the "Fund"), a registered management investment company under the Investment Company Act of 1940, as amended. These portfolios and their respective investment management organizations are as follows:
PORTFOLIO INVESTMENT MANAGER --------- ------------------------ Money Market Janus Capital Corporation ("JCC") Bond JCC Growth JCC Short-to-Intermediate AEGON USA Investment Government Management, Inc. ("AEGON Management") Global JCC Equity-Income Luther King Capital Management Corporation Emerging Growth Van Kampen American Capital Asset Management, Inc. Aggressive Growth Fred Alger Management, Inc. Balanced AEGON Management Utility Federated Investment Counseling Tactical Asset Dean Investment Associates Allocation
WRL and AEGON Management are indirectly wholly-owned subsidiaries of AEGON USA, Inc., which is an indirect wholly-owned subsidiary of AEGON nv, a Netherlands corporation. On January 3, 1995, WRL made an initial contribution of $200,000 to the Life Account, Tactical Asset Allocation sub-account, for which WRL received 20,000.000000 units. On April 20, 1995, WRL redeemed the initial contribution in the Life Account, Tactical Asset Allocation sub-account, for $209,775. The Life Account holds assets to support the benefits under flexible premium variable universal life insurance policies (the "Policies") issued by WRL, which issued the first of such Policies on October 3, 1986. The Life Account's equity transactions are accounted for using the appropriate effective date at the corresponding accumulation unit value. The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following significant accounting policies, which are in conformity with generally accepted accounting principles for unit investment trusts, have been consistently used in preparation of the Trust's financial statements. A. VALUATION OF INVESTMENTS The investments in the Fund's shares are stated at the closing net asset value ("NAV") per share as determined by the Fund on December 31, 1995. Investment transactions are accounted for on the trade date, using the Fund NAV next determined after receipt of sale or redemption order without sales charges. Dividend income and capital gain distributions are recorded on the ex-dividend date. The cost of investments sold is determined on a first-in, first-out basis. B. FEDERAL INCOME TAXES The operations of the Life Account are a part of and are taxed with the total operations of WRL, which is taxed as a life insurance company under the Internal Revenue Code. Under current law, the investment income of the Life Account, including realized and unrealized capital gains, is not taxable to WRL. Accordingly, no provision for Federal income taxes has been made. NOTE 2 - CHARGES AND DEDUCTIONS Charges are assessed by WRL in connection with issuance and administration of the Policies. A. POLICY CHARGES Under some forms of the Policies, sales and other administrative charges are deducted by WRL prior to allocation of policyowner payments to the sub-accounts. Thereafter, monthly administrative charges are deducted from the sub-accounts, some of which continue only during the first policy year. Contingent surrender charges may also apply. - -------------------------------------------------------------------------------- 24 27 WRL SERIES LIFE ACCOUNT NOTES TO FINANCIAL STATEMENTS (CONTINUED) - -------------------------------------------------------------------------------- NOTE 2 - CHARGES AND DEDUCTIONS (CONTINUED) Under the other forms of the Policies, such "front-end" and other administrative charges are not deducted prior to allocation of the initial premium payment but may reside as contingent surrender charges. Under all forms of the Policy, monthly charges against policy cash values are made to compensate WRL for costs of insurance provided. B. LIFE ACCOUNT CHARGES A daily charge equal to an annual rate of 0.90% of average daily net assets of the Life Account is assessed to compensate WRL for assumption of mortality and expense risks in connection with issuance and administration of the Policies. This charge (not assessed at the individual policy level) effectively reduces the value of a unit outstanding during the year. NOTE 3 - DIVIDENDS AND DISTRIBUTIONS Dividends of the Fund's Money Market Portfolio are declared daily and reinvested monthly. Dividends of the remaining portfolios are declared and reinvested semiannually, while capital gain distributions are declared and reinvested annually. Dividends and distributions of the Fund are generally paid to and reinvested by the Life Account the next business day after declaration. NOTE 4 - OTHER MATTERS As of December 31, 1995 the equity accounts include net unrealized appreciation (depreciation) on investments as follows: SUB-ACCOUNT - --------------- Money Market.......................... $ n/a Bond.................................. 152,765 Growth................................ 59,702,041 Short-to-Intermediate Government...... 38,530 Global................................ 3,601,189 Equity-Income......................... 4,450,990 Emerging Growth....................... 14,553,246 Aggressive Growth..................... 3,017,224 Balanced.............................. 312,600 Utility............................... 244,963 Tactical Asset Allocation............. 615,719
- -------------------------------------------------------------------------------- 25 28 This page is intentionally left blank. 29 This page is intentionally left blank. 30 This page is intentionally left blank. 31 - -------------------------------------------------------------------------------- W R L S E R I E S L I F E A C C O U N T - -------------------------------------------------------------------------------- OFFICE OF THE WRL SERIES LIFE ACCOUNT 201 Highland Avenue Largo, FL 34640 1-800-851-9777 Ext. 6510 --------------------------------------------- DISTRIBUTOR: InterSecurities, Inc. 201 Highland Avenue Largo, FL 34640 --------------------------------------------- INSURER: Western Reserve Life Assurance Co. of Ohio 201 Highland Avenue Largo, FL 34640 --------------------------------------------- INDEPENDENT ACCOUNTANTS: Price Waterhouse LLP 1055 Broadway Kansas City, MO 64105 32 THIS MATERIAL IS FOR CONTRACT HOLDER'S REPORTING PURPOSES ONLY AND SHALL NOT BE USED IN CONNECTION WITH A SOLICITATION, OFFER OR ANY PROPOSED SALE OR PURCHASE OF SECURITIES UNLESS PRECEDED OR ACCOMPANIED BY A PROSPECTUS. [WRL LOGO] - -------------------------------------------------------------------------------- Western Reserve Life Assurance Co. of Ohio Distributor: InterSecurities, Inc. P.O. Box 5068 - Clearwater, FL 34618-5068 February 1996 ACC00003-A (2/96) -----END PRIVACY-ENHANCED MESSAGE-----