-----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, Hv46Kz55v2Vs1yW5Dvd3B4f4VlsldpLHOV06Ug+cn8ulERKy+fYEGQ7LqkPIv+gy slTSRy+3kdOpCtL3bqYsaQ== 0001016843-96-000146.txt : 19961225 0001016843-96-000146.hdr.sgml : 19961225 ACCESSION NUMBER: 0001016843-96-000146 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 5 FILED AS OF DATE: 19961224 EFFECTIVENESS DATE: 19961224 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: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 033-31140 FILM NUMBER: 96685381 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-04420 FILM NUMBER: 96685382 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 485BPOS 1 As filed with the Securities and Exchange Commission on December 24, 1996 Registration File Nos. 33-31140/811-4420 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 --------------------------------- POST-EFFECTIVE AMENDMENT NO. 13 FORM S-6 --------------------------------- FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933 OF SECURITIES OF UNIT INVESTMENT TRUSTS REGISTERED ON FORM N-8B-2 --------------------------------- WRL SERIES LIFE ACCOUNT (Exact Name of Trust) WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO (Name of Depositor) 201 Highland Avenue Largo, Florida 33770 (Complete Address of Depositor's Principal Executive Offices) Thomas E. Pierpan, Esq. Vice President and Counsel Western Reserve Life Assurance Co. of Ohio 201 Highland Avenue Largo, Florida 33770 (Name and Complete Address of Agent for Service) Copies to: Stephen E. Roth, Esq. Sutherland, Asbill & Brennan 1275 Pennsylvania Avenue, N.W. Washington, D.C. 20004-2404 --------------------------------- It is proposed that this filing will become effective (check appropriate space): [ ] immediately upon filing pursuant to paragraph (b) of Rule 485 [X] on DECEMBER 31, 1996 , pursuant to paragraph (b) of Rule 485 [ ] 60 days after filing pursuant to paragraph (a) of Rule 485 [ ] on DATE , pursuant to paragraph (a) of Rule 485 Pursuant to Rule 24f-2, the Registrant has chosen to register an indefinite amount of the securities being offered. The Rule 24f-2 Notice for Registrant's most recent fiscal year was filed on February 28, 1996. CROSS REFERENCE TO ITEMS REQUIRED BY FORM N-8B-2 N-8B-2 ITEM CAPTION IN PROSPECTUS - ----------- --------------------- 1 Cover Page; The Series Account 2 Cover Page; Western Reserve Life Assurance Co. of Ohio 3 Not Applicable 4 Distribution of the Policies 5 The Series Account 6 The Series Account 7 Not Applicable 8 Not Applicable 9 Legal Proceedings 10 Introduction; Policy Benefits; Payment and Allocation of Premiums; Investments of the Series Account; Policy Rights 11 The Series Account; WRL Series Fund, Inc. 12 The Series Account; WRL Series Fund, Inc. 13 Charges and Deductions; The Series Account; Investments of the Series Account 14 Introduction; Allocation of Premiums and Cash Value 15 Allocation of Premiums and Cash Values 16 The Series Account 17 Cash Value; The Series Account; Policy Rights 18 Payment and Allocation of Premiums; Cash Value 19 Voting Rights of the Series Account; Reports and Records (i) N-8B-2 ITEM CAPTION IN PROSPECTUS - ----------- --------------------- 20 Not Applicable 21 Loan Privileges 22 Not Applicable 23 Safekeeping of the Series Account's Assets 24 Policy Rights 25 Western Reserve Life Assurance Co. of Ohio 26 Not Applicable 27 Western Reserve Life Assurance Co. of Ohio; The Series Account; WRL Series Fund, Inc. 28 Western Reserve Life Assurance Co. of Ohio; Executive Officers and Directors of Western Reserve Life Assurance Co. of Ohio 29 Western Reserve Life Assurance Co. of Ohio 30 Not Applicable 31 Not Applicable 32 Not Applicable 33 Not Applicable 34 Not Applicable 35 Western Reserve Life Assurance Co. of Ohio 36 Not Applicable 37 Not Applicable 38 Distribution of the Policies 39 Distribution of the Policies (ii) N-8B-2 ITEM CAPTION IN PROSPECTUS - ----------- --------------------- 40 Not Applicable 41 Distribution of the Policies; Western Reserve Life Assurance Co. of Ohio 42 Not Applicable 43 Not Applicable 44 Cash Value 45 Not Applicable 46 Cash Value 47 Introduction; Allocation of Premiums and Cash Value 48 Not Applicable 49 Not Applicable 50 Not Applicable 51 Introduction; Western Reserve Life Assurance Co. of Ohio; Policy Benefits; Charges and Deductions 52 The Series Account; WRL Series Fund, Inc. 53 Federal Tax Matters 54 Not Applicable 55 Not Applicable 56 Not Applicable 57 Not Applicable 58 Not Applicable 59 Not Applicable (iii) SUPPLEMENT DATED JANUARY 1, 1997 TO PROSPECTUS DATED MAY 1, 1996 WRL FREEDOM EQUITY PROTECTOR(R) Effective January 1, 1997, WRL Investment Management, Inc. ("WRL Management"), a Florida corporation, will replace Western Reserve Life Assurance Co. of Ohio ("Western Reserve") as the investment adviser for the WRL Series Fund, Inc. (the "Fund"). WRL Management is a wholly-owned subsidiary of Western Reserve. Throughout the Prospectus, wherever Western Reserve is referred to as the Fund's investment adviser, Western Reserve will be replaced with WRL Management. Also, effective January 1, 1997, two new investment options will be made available through this Policy. These new options are the International Equity Portfolio and the U.S. Equity Portfolio. Details concerning these two new Portfolios follow below. Throughout the Prospectus wherever reference is made to THIRTEEN Sub-Accounts or Portfolios, it will now mean FIFTEEN Sub-Accounts or Portfolios. Wherever reference is made to "twenty-one portfolios" of the Fund, it will now mean "twenty-two portfolios" of the Fund. THE FOLLOWING INFORMATION IS ADDED TO PAGE 4, FOURTH PARAGRAPH, AFTER THE FIRST SENTENCE UNDER THE HEADING "INTRODUCTION - 11. WHAT CHARGES ARE ASSESSED IN CONNECTION WITH THE POLICY?" Effective January 1, 1997, the Fund has adopted a Plan of Distribution pursuant to Rule 12b-1 under the 1940 Act ("Distribution Plan") and pursuant to the Plan, has entered into a Distribution Agreement with InterSecurities, Inc. ("ISI"), principal underwriter for the Fund. Under the Distribution Plan, the Fund, on behalf of the Portfolios, is authorized to pay to various service providers, as direct payment for expenses incurred in connection with the distribution of a Portfolio's shares, amounts equal to actual expenses associated with distributing a Portfolio's shares, up to a maximum rate of 0.15% (fifteen one-hundredths of one percent) on an annualized basis of the average daily net assets. This fee is measured and accrued daily and paid monthly. ISI has determined that it will not seek payment by the Fund of distribution expenses with respect to any Portfolio during the fiscal year ending December 31, 1997. Prior to ISI's seeking reimbursement, Policyowners will be notified in advance. THE FOLLOWING INFORMATION SUPPLEMENTS INFORMATION PROVIDED ON PAGES 15-17 OF THE PROSPECTUS UNDER THE HEADING "INVESTMENTS OF THE SERIES ACCOUNT - WRL SERIES FUND, INC.": WRL Management serves as investment adviser to each Portfolio of the Fund and manages their assets in accordance with policies, programs and guidelines established by the Board of Directors of the Fund. Beginning January 1, 1997, the Fund will offer two additional portfolios ("Portfolios"). The investment objective and policies of each new Portfolio are summarized below. There is no assurance that the Portfolios will achieve their stated objective. More detailed information, including a description of risks, can be found in the prospectus for the Fund, which should be read carefully. INTERNATIONAL EQUITY PORTFOLIO: This Portfolio seeks long-term growth of capital by investing primarily in the common stock of foreign issuers traded on overseas exchanges and in foreign over-the-counter markets. U.S. EQUITY PORTFOLIO: This Portfolio seeks long-term growth of capital by investing primarily in equity securities of U.S. companies. Scottish Equitable Investment Management Limited ("Scottish Equitable") serves as a Co-Sub-Adviser to the International Equity Portfolio. Scottish Equitable, located at Edinburgh Park, Edinburgh EH12 9SE, Scotland, is a wholly-owned subsidiary of Scottish Equitable plc, successor to Scottish Equitable Life Assurance Society, which was founded in Edinburgh in 1831. Scottish Equitable is also an indirect wholly-owned subsidiary of AEGON nv. As of December 31, 1995, Scottish Equitable had approximately $15.9 billion in assets under management. Scottish Equitable has not previously advised a U.S.-registered mutual fund. Scottish Equitable currently provides investment advisory and management services to certain of its affiliates and to external organizations. WRL Management receives monthly compensation at the annual rate of 1.00% of the aggregate average daily net assets of the International Equity Portfolio. From this amount, Scottish Equitable receives 0.50% of average daily net assets of the Portfolio managed by Scottish Equitable, less 50% of the amount of excess expenses attributable to such assets. GE Investment Management Incorporated ("GEIM") also serves as a Co-Sub-Adviser to the International Equity Portfolio and as Sub-Adviser to the U.S. Equity Portfolio. GEIM, located at 3003 Summer Street, Stamford, Connecticut 06905, is a wholly-owned subsidiary of General Electric Company ("GE"). GEIM's principal officers and directors serve in similar capacities with respect to General Electric Investment Corporation ("GEIC," and, together with GEIM and their predecessors, collectively referred to as "GE Investments"), which like GEIM is a wholly-owned subsidiary of GE. GE Investments has roughly 70 years of investment management experience, and has managed mutual funds since 1935. As of June 30, 1996, GEIM and GEIC together managed assets in excess of $55 billion. GE Investments provides investment management services to external organizations and to certain of its affiliates. WRL Management receives monthly compensation at the annual rate of 1.00% of the aggregate average daily net assets of the International Equity Portfolio. From this amount, GEIM, receives 0.50% of average daily net assets of the Portfolio managed by GEIM, less 50% of amount of excess expenses attributable to such assets. With respect to the U.S. Equity Portfolio, WRL Management and GEIM will divide equally monthly compensation at the current annual rate of 0.80% of the aggregate average daily net assets of the U.S. Equity Portfolio. GEIM's compensation will be reduced by 50% of the amount paid by WRL Management on behalf of the U.S. Equity Portfolio pursuant to any expense limitation or other reimbursement. Any amount borne by GEIM pursuant to any expense limitation constitutes an agreement between the Investment Adviser and GEIM only for the first twelve months following each Portfolio's commencement of operations. Thereafter, any such arrangements will be as mutually agreed upon by GEIM and the Investment Adviser. THE LAST PARAGRAPH ON PAGE 21 UNDER THE HEADING "PAYMENT AND ALLOCATION OF PREMIUMS - DOLLAR COST AVERAGING" HAS BEEN MODIFIED AS FOLLOWS: Although Dollar Cost Averaging is not available as of the date of this Prospectus, Western Reserve anticipates its availability by February 1, 1997. THE LAST PARAGRAPH ON PAGE 21 UNDER THE HEADING "PAYMENT AND ALLOCATION OF PREMIUMS - ASSET REBALANCING PROGRAM" HAS BEEN MODIFIED AS FOLLOWS: Although the Asset Rebalancing Program is not available as of the date of this Prospectus, Western Reserve anticipates its availability by February 1, 1997. THE FOLLOWING INFORMATION IS MODIFIED ON PAGE 25, UNDER THE HEADING "CHARGES AND DEDUCTIONS - CHARGES AGAINST THE SERIES ACCOUNT" AS FOLLOWS: Addition of new sub-heading after the fourth paragraph. EXPENSES OF THE FUND Deletion of sub-heading "Investment Advisory Fee." ADDITION OF A NEW PARAGRAPH BEFORE THE HEADING "GROUP OR SPONSORED ARRANGEMENTS" AS FOLLOWS: Effective January 1, 1997, the Fund has adopted a Plan of Distribution pursuant to Rule 12b-1 under the 1940 Act ("Distribution Plan") and pursuant to the Plan, has entered into a Distribution Agreement with InterSecurities, Inc. ("ISI"), principal underwriter for the Fund. Under the Distribution Plan, the Fund, on behalf of the Portfolios, is authorized to pay to various service providers, as direct payment for expenses incurred in connection with the distribution of a Portfolio's shares, amounts equal to actual expenses associated with distributing a Portfolio's shares, up to a maximum rate of 0.15% (fifteen one-hundredths of one percent) on an annualized basis of the average daily net assets. This fee is measured and accrued daily and paid monthly. ISI has determined that it will not seek payment by the Fund of distribution expenses with respect to any Portfolio during the fiscal year ending December 31, 1997. Prior to ISI's seeking reimbursement, Policyowners will be notified in advance. THE FIFTH PARAGRAPH ON PAGE 37 OF THE PROSPECTUS UNDER THE HEADING "APPENDIX A - ILLUSTRATION OF BENEFITS" IS CHANGED AS FOLLOWS: The amounts shown for the death benefits, Cash Values and Net Surrender Values take into account (1) the daily charge for assuming mortality and expense risks assessed against each Sub-Account which is equivalent to an annual charge of 0.90% of the average net assets of the Sub-Accounts; (2) estimated daily expenses equivalent to an effective average annual expense level of 0.87% of the average daily net assets of the Portfolios of the Fund; and (3) all applicable premium expense charges and Cash Value charges. The 0.87% average Portfolio expense level assumes an equal allocation of amounts among the fifteen Sub-Accounts and is based on an average 0.71% investment advisory fee and estimated 1996 average normal operating expenses of 0.16% for each of the Portfolios in operation during 1996. Calculation of the average annual expense level utilized annualized actual 11-month unaudited expenses incurred during 1996 as adjusted for anticipated expense modifications incurring in 1997 for the Money Market (0.46%), Bond (0.61%), Growth (0.85%), Short-to-Intermediate Government (0.72%), Equity-Income (0.87%), Emerging Growth (0.88%), Global (0.90%), Aggressive Growth (0.91%), Balanced (0.90%), Utility (0.91%), C.A.S.E. Growth (0.94%), and Tactical Asset Allocation (0.86%). In addition, because the Value Equity Portfolio was not in existence during the full year of 1996 (commencement of operations was May 1, 1996), and the U.S. Equity Portfolio and International Equity Portfolio had not commenced operations as of December 31, 1996, the estimated average annual Portfolio expense level reflects estimated expenses for these three Portfolios at 0.85%, 1.05%, and 1.30%, respectively, for 1997. During 1996, Western Reserve had undertaken to pay Fund expenses for each Portfolio to the extent normal operating expenses of a Portfolio exceeded a stated percentage of the Portfolio's average daily net assets. Western Reserve has also undertaken until April 30, 1997 to pay expenses to the extent normal operating expenses of a Portfolio exceed a stated percentage of the Portfolio's average daily net assets. Taking into account the assumed charges of 1.77%, the gross annual investment return rates of 0%, 6% and 12% are equivalent to net annual investment return rates of -1.77%, 4.23%, and 10.23%. THE ATTACHED FINANCIALS SUPPLEMENT THE FINANCIAL STATEMENTS INCLUDED IN THE MAY 1, 1996 PROSPECTUS BOOKLET. WRL SERIES LIFE ACCOUNT MONEY MARKET SUB-ACCOUNT (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS ASSETS: SEPTEMBER 30, 1996 ------------------ Investments at net asset value: WRL Series Fund, Inc.: Money Market Portfolio (14,772,612.310 shares; cost $ 14,772,612) ..................................... $14,772,612 Accrued transfers from (to) depositor - net ............... 38,350 ----------- Total assets ........................................... 14,810,962 ----------- LIABILITIES: ................................................ 0 ----------- Total net assets ....................................... $14,810,962 =========== EQUITY ACCOUNTS: Policyowners' equity: Money Market sub-account (968,329.525481 units; $15.295374 unit value) ................................. $14,810,962 ----------- Total equity ........................................... $14,810,962 =========== STATEMENT OF OPERATIONS NINE MONTHS ENDED INVESTMENT INCOME: SEPTEMBER 30, 1996 ------------------ Dividend income ....................................... $426,457 Capital gain distributions ............................ 0 426,457 -------- EXPENSES: Mortality and expense risk charges .................... 76,494 -------- Net investment income (loss) ........................ 349,963 -------- 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 ............... $349,963 ========
STATEMENT OF CHANGES IN EQUITY ACCOUNTS NINE MONTHS ENDED YEAR ENDED OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995 ------------------ ----------------- Net investment income (loss) ............... $ 349,963 $ 397,410 Net gain (loss) on investments ............. 0 0 ----------- ----------- Net increase (decrease) in equity accounts resulting from operations ................. 349,963 397,410 ----------- ----------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed) ........ 6,152,998 3,139,280 ----------- ----------- Less cost of units redeemed: Administrative charges .................... 1,753,507 1,356,484 Policy loans .............................. 179,641 219,767 Surrender benefits ........................ 499,065 899,893 Death benefits ............................ 18,410 7,670 ----------- ----------- 2,450,623 2,483,814 ----------- ----------- Increase (decrease) in equity accounts from capital unit transactions ............... 3,702,375 655,466 ----------- ----------- Net increase (decrease) in equity accounts 4,052,338 1,052,876 EQUITY ACCOUNTS: Beginning of period ........................ 10,758,624 9,705,748 ----------- ----------- End of period .............................. $14,810,962 $10,758,624 =========== ===========
The notes to the financial statements are an integral part of this report. - ------------------------------------------------------------------------------- 1 WRL SERIES LIFE ACCOUNT MONEY MARKET SUB-ACCOUNT (UNAUDITED) - --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED SEPT. 30 DECEMBER 31 -------- ------------------------------------------------------------ 1996 1995 1994 1993 1992 1991 -------- -------- -------- -------- -------- -------- Accumulation unit value, beginning of period $ 14.83 $ 14.19 $ 13.84 $ 13.63 $ 13.33 $ 12.78 Income from operations: Net investment income (loss) ............ .47 .64 .35 .21 .30 .55 Net realized and unrealized gain (loss) on investments ............ .00 .00 .00 .00 .00 .00 -------- -------- -------- -------- -------- -------- Total income (loss) from operations ... .47 .64 .35 .21 .30 .55 -------- -------- -------- -------- -------- -------- Accumulation unit value, end of period ..... $ 15.30 $ 14.83 $ 14.19 $ 13.84 $ 13.63 $ 13.33 ======== ======== ======== ======== ======== ======== Total return ............................... 3.13% 4.49% 2.58% 1.52% 2.24% 4.34% Ratios and supplemental data: Net assets at end of period (in thousands) $ 14,811 $ 10,759 $ 9,706 $ 4,985 $ 4,619 $ 4,042 Ratio of net investment income (loss) to average net assets** .................... 4.09% 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 through each period. ** This ratio is annualized for the period ended September 30, 1996.
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 2 WRL SERIES LIFE ACCOUNT BOND SUB-ACCOUNT (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS ASSETS: SEPTEMBER 30, 1996 ------------------ Investments at net asset value: WRL Series Fund, Inc.: Bond Portfolio (1,029,776.221 shares; cost $11,356,557) ................................. $ 11,044,802 Accrued transfers from (to) depositor - net .......... (8,481) ------------ Total assets ...................................... 11,036,321 ------------ LIABILITIES: ........................................... 0 ------------ Total net assets .................................. $ 11,036,321 ============ EQUITY ACCOUNTS: Policyowners' equity: Bond sub-account (580,868.722716 units; $18.999682 unit value) ............................ $ 11,036,321 ------------ Total equity ...................................... $ 11,036,321 ============ STATEMENT OF OPERATIONS NINE MONTHS ENDED INVESTMENT INCOME: SEPTEMBER 30, 1996 ------------------ Dividend income ......................................... $ 288,871 Capital gain distributions .............................. 0 --------- 288,871 EXPENSES: Mortality and expense risk charges ...................... 69,846 --------- Net investment income (loss) .......................... 219,025 --------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions ............................... (114,753) Unrealized appreciation (depreciation) .................. (464,520) --------- Net gain (loss) on investments ........................ (579,273) --------- Net increase (decrease) in net assets resulting from operations .......................... $(360,248) =========
STATEMENT OF CHANGES IN EQUITY ACCOUNTS NINE MONTHS ENDED YEAR ENDED OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995 ------------------ ----------------- Net investment income (loss)................................ $ 219,025 $ 459,977 Net gain (loss) on investments.............................. (579,273) 1,080,157 ----------- ---------- Net increase (decrease) in equity accounts resulting from operations.................................. (360,248) 1,540,134 ----------- ---------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed):........................ 2,715,612 3,749,029 ----------- ---------- Less cost of units redeemed: Administrative charges..................................... 953,693 916,494 Policy loans............................................... 148,082 197,829 Surrender benefits......................................... 260,483 357,384 Death benefits............................................. 22,917 10,202 ----------- ---------- 1,385,175 1,481,909 ----------- ---------- Increase (decrease) in equity accounts from capital unit transactions................................ 1,330,437 2,267,120 ----------- ---------- Net increase (decrease) in equity accounts................. 970,189 3,807,254 EQUITY ACCOUNTS: Beginning of period......................................... 10,066,132 6,258,878 ----------- ----------- End of period............................................... $11,036,321 $10,066,132 =========== ===========
The notes to the financial statements are an integral part of this report. - ------------------------------------------------------------------------------- 3 WRL SERIES LIFE ACCOUNT BOND SUB-ACCOUNT (UNAUDITED) - --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED SEPT. 30 DECEMBER 31 -------- --------------------------------------------------- 1996 1995 1994 1993 1992 1991 -------- -------- -------- -------- -------- -------- Accumulation unit value, beginning of period $ 19.67 $ 16.14 $ 17.50 $ 15.57 $ 14.68 $ 12.48 Income from operations: Net investment income (loss) ............ .40 1.05 .89 2.11 1.00 .48 Net realized and unrealized gain (loss) on investments ............ (1.07) 2.48 (2.25) (.18) (.11) 1.72 -------- -------- -------- -------- -------- -------- Total income (loss) from operations ... (.67) 3.53 (1.36) 1.93 .89 2.20 --------- -------- -------- -------- -------- -------- Accumulation unit value, end of period ..... $ 19.00 $ 19.67 $ 16.14 $ 17.50 $ 15.57 $ 14.68 ======== ======== ======== ======== ======== ======== Total return ............................... (3.43)% 21.89% (7.77)% 12.40% 6.08% 17.63% Ratios and supplemental data: Net assets at end of period (in thousands) $ 11,036 $ 10,066 $ 6,259 $ 6,985 $ 4,558 $ 3,055 Ratio of net investment income (loss) to average net assets** .................... 2.86% 5.80% 5.57% 12.92% 6.6 3.59% - ---------- * The above table illustrates the change for a unit outstanding computed using average units outstanding through each period. ** This ratio is annualized for the period ended September 30, 1996.
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 4 WRL SERIES LIFE ACCOUNT GROWTH SUB-ACCOUNT (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS ASSETS: SEPTEMBER 30, 1996 ------------------ Investments at net asset value: WRL Series Fund, Inc.: Growth Portfolio (9,051,069.555 shares; cost $ 233,268,655) ................................. $ 333,851,051 Accrued transfers from (to) depositor - net ............ (277,798) ------------- Total assets ........................................ 333,573,253 LIABILITIES: ............................................. 0 ------------- Total net assets .................................... $ 333,573,253 ============= EQUITY ACCOUNTS: Policyowners' equity: Growth sub-account (6,908,195.647892 units; $ 48.286596 unit value) ............................. $ 333,573,253 ------------- Total equity ........................................ $ 333,573,253 ============= STATEMENT OF OPERATIONS NINE MONTHS ENDED INVESTMENT INCOME: SEPTEMBER 30, 1996 ------------------ Dividend income ...................................... $ 860,787 Capital gain distributions ........................... 1,077,884 ------------ 1,938,671 EXPENSES: Mortality and expense risk charges ................... 1,997,056 ------------ Net investment income (loss) ....................... (58,385) ------------ Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions ............................ 4,232,941 Change in unrealized appreciation (depreciation) ....................................... 40,880,353 ------------ Net gain (loss) on investments ....................... 45,113,294 ------------ Net increase (decrease) in equity accounts resulting from operations ......................... $ 45,054,909 ============
STATEMENT OF CHANGES IN EQUITY ACCOUNTS NINE MONTHS ENDED YEAR ENDED OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995 ------------------ ----------------- Net investment income (loss)................................... $ (58,385) $ 23,250,380 Net gain (loss) on investments................................. 45,113,294 54,801,782 ------------ ------------ Net increase (decrease) in equity accounts resulting from operations.................................... 45,054,909 78,052,162 ------------ ------------ EQUITY TRANSACTIONS: Proceeds from units sold (redeemed)............................ 62,530,238 61,850,933 ------------ ------------ Less cost of units redeemed: Administrative charges........................................ 21,253,460 23,714,204 Policy loans.................................................. 6,128,299 5,518,596 Surrender benefits............................................ 8,699,115 8,982,170 Death benefits................................................ 398,125 711,078 ------------ ------------ 36,478,999 38,926,048 ------------ ------------ Increase (decrease) in equity accounts from capital unit transactions................................... 26,051,239 22,924,885 ------------ ------------ Net increase (decrease) in equity accounts.................... 71,106,148 100,977,047 EQUITY ACCOUNTS: Beginning of period............................................ 262,467,105 161,490,058 ------------ ------------ End of period.................................................. $333,573,253 $262,467,105 ============ ============
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 5 WRL SERIES LIFE ACCOUNT GROWTH SUB-ACCOUNT (UNAUDITED) - --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED SEPT. 30 DECEMBER 31 -------- -------------------------------------------------------- 1996 1995 1994 1993 1992 1991 -------- -------- -------- -------- -------- -------- Accumulation unit value, beginning of period $ 41.47 $ 28.44 $ 31.30 $ 30.37 $ 29.95 $ 18.91 Income from operations: Net investment income (loss) ............ (.01) 3.89 .04 .46 1.09 1.72 Net realized and unrealized gain (loss) on investments ............ 6.83 9.14 (2.90) .47 (.67) 9.32 -------- -------- -------- -------- -------- -------- Total income (loss) from operations ... 6.82 13.03 (2.86) .93 .42 11.04 -------- -------- -------- -------- -------- -------- Accumulation unit value, end of period ..... $ 48.29 $ 41.47 $ 28.44 $ 31.30 $ 30.37 $ 29.95 ======== ======== ======== ======== ======== ======== Total return ............................... 16.44% 45.81% (9.13)% 3.06% 1.41% 58.37% Ratios and supplemental data: Net assets at end of period (in thousands) $333,573 $262,467 $161,490 $169,757 $146,053 $111,375 Ratio of net investment income (loss) to average net assets** .................... (.03)% 11.05% .16% 1.56% 3.84% 7.14% - ------------ * The above table illustrates the change for a unit outstanding computed using average units outstanding through each period. ** This ratio is annualized for the period ended September 30, 1996.
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 6 WRL SERIES LIFE ACCOUNT SHORT-TO-INTERMEDIATE GOVERNMENT SUB-ACCOUNT (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS ASSETS: SEPTEMBER 30, 1996 ------------------ Investments at net asset value: WRL Series Fund, Inc.: Short-to-Intermediate Government Portfolio (144,126.953 shares; cost $ 1,484,619) ................................... $ 1,497,493 Accrued transfers from (to) depositor - net ............ (1,871) ----------- Total assets ........................................ 1,495,622 LIABILITIES: ............................................. 0 ----------- Total net assets .................................... $ 1,495,622 =========== EQUITY ACCOUNTS: Policyowners' equity: Short-to-Intermediate Government sub-account (128,515.024738 units; $11.637719 unit value) .............................. $ 1,495,622 ----------- Total equity ........................................ $ 1,495,622 =========== STATEMENT OF OPERATIONS NINE MONTHS ENDED INVESTMENT INCOME: SEPTEMBER 30,1996 ----------------- Dividend income .......................................... $ 23,677 Capital gain distributions ............................... 0 -------- 23,677 EXPENSES: Mortality and expense risk charges ....................... 10,115 -------- Net investment income (loss) ........................... 13,562 -------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions ................................ 22,518 Change in unrealized appreciation (depreciation) .......................................... (25,656) -------- Net gain (loss) on investments ......................... (3,139) -------- Net increase (decrease) in net assets resulting from operations ............................. $ 10,423 ========
STATEMENT OF CHANGES IN EQUITY ACCOUNTS NINE MONTHS ENDED YEAR ENDED OPERATIONS: SEPTEMBER 30,1996 DECEMBER 31, 1995 - ----------- ----------------- ----------------- Net investment income (loss)................................... $ 13,562 $ 62,086 Net gain (loss) on investments................................. (3,139) 68,387 ---------- ---------- Net increase (decrease) in equity accounts resulting from operations..................................... 10,423 130,473 ---------- ---------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed)............................ 144,541 679,242 ---------- ---------- Less cost of units redeemed: Administrative charges........................................ 130,446 141,954 Policy loans.................................................. 27,903 52,521 Surrender benefits............................................ 18,978 41,967 Death benefits................................................ 0 144 ---------- ---------- 177,327 236,586 ---------- ---------- Increase (decrease) in equity accounts from capital unit transactions................................... (32,786) 442,656 ---------- ---------- Net increase (decrease) in equity accounts.................... (22,363) 573,129 EQUITY ACCOUNTS: Beginning of period............................................ 1,517,985 944,856 ---------- ---------- End of period.................................................. $1,495,622 $1,517,985 ========== ==========
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 7 WRL SERIES LIFE ACCOUNT SHORT-TO-INTERMEDIATE GOVERNMENT SUB-ACCOUNT (UNAUDITED) - -------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED SEPT. 30 DECEMBER 31 -------- -------------------------------------------- 1996 1995 1994 1993 1992\dagger\ -------- ------- -------- -------- ------- Accumulation unit value, beginning of period $ 11.55 $ 10.27 $ 10.40 $ 10.04 $ 10.00 Income from operations: Net investment income (loss) ............ .10 .61 .40 .14 .01 Net realized and unrealized gain (loss) on investments ............ (.01) .67 (.53) .22 .03 -------- ------- -------- -------- ------- Total income (loss) from operations ... .09 1.28 (.13) .36 .04 -------- ------- -------- --------- ------- Accumulation unit value, end of period ..... $ 11.64 $ 11.55 $ 10.27 $ 10.40 $ 10.04 ======== ======== ======== ======== ======== Total return ............................... .73% 12.53% (1.32)% 3.64% .38% Ratios and supplemental data: Net assets at end of period (in thousands) $ 1,496 $ 1,518 $ 945 $ 1,408 $ 803 Ratio of net investment income (loss) to average net assets** .................... 1.22% 5.53% 4.06% 1.39% .16%
* The above table illustrates the change for a unit outstanding computed using average units outstanding through each period. ** This ratio is annualized for the period ended September 30, 1996. \dagger\ The inception date of this sub-account was December 3, 1992. The total return is not annualized. The notes to the financial statements are an integral part of this report. - ------------------------------------------------------------------------------- 8 WRL SERIES LIFE ACCOUNT GLOBAL SUB-ACCOUNT (UNAUDITED) - ------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS ASSETS: SEPTEMBER 30, 1996 ------------------ Investments at net asset value: WRL Series Fund, Inc.: Global Portfolio (3,830,440.472 shares; cost $ 59,223,121) .................................. $72,234,094 Accrued transfers from (to) depositor - net ............ 32,463 ----------- Total assets ........................................ 72,266,557 ----------- LIABILITIES: ............................................. 0 ----------- Total net assets .................................... $72,266,557 =========== EQUITY ACCOUNTS: Policyowners' equity: Global sub-account (4,974,425.092964 units; $ 14.527620 unit value) ............................. $72,266,557 ----------- Total equity ........................................ $72,266,557 =========== STATEMENT OF OPERATIONS NINE MONTHS ENDED INVESTMENT INCOME: SEPTEMBER 30,1996 ----------------- Dividend income ......................................... $ 354,841 Capital gain distributions .............................. 114,391 ---------- 469,232 ========== EXPENSES: Mortality and expense risk charges ...................... 368,006 ---------- Net investment income (loss) .......................... 101,226 ---------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions ............................... 282,560 Unrealized appreciation (depreciation) .................. 9,409,784 ---------- Net gain (loss) on investments ........................ 9,692,344 ---------- Net increase (decrease) in net assets resulting from operations .......................... $9,793,570 ==========
STATEMENT OF CHANGES IN EQUITY ACCOUNTS NINE MONTHS ENDED YEAR ENDED OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995 ------------------ ----------------- Net investment income (loss) ............... $ 101,226 $ 1,187,745 Net gain (loss) on investments ............. 9,692,344 4,626,003 ------------ ----------- Net increase (decrease) in equity accounts resulting from operations ................. 9,793,570 5,813,748 ------------ ----------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed) ........ 32,319,930 15,012,786 ------------ ----------- Less cost of units redeemed: Administrative charges .................... 4,391,586 4,017,781 Policy loans .............................. 887,801 666,264 Surrender benefits ........................ 1,309,265 721,584 Death benefits ............................ 38,835 44,234 ------------ ----------- 6,627,487 5,449,863 ------------ ----------- Increase (decrease) in equity accounts from capital unit transactions ............... 25,692,443 9,562,923 ------------ ----------- Net increase (decrease) in equity accounts 35,486,013 15,376,671 Depositors' equity contribution (redemption) (268,153) 0 EQUITY ACCOUNTS: Beginning of period ........................ 37,048,697 21,672,026 ------------ ----------- End of period .............................. $ 72,266,557 $37,048,697 ============ ===========
The notes to the financial statements are an integral part of this report. - ------------------------------------------------------------------------------- 9
WRL SERIES LIFE ACCOUNT GLOBAL SUB-ACCOUNT (UNAUDITED) - -------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED SEPT. 30 DECEMBER 31 --------- ------------------------- 1996 1995 1994\dagger\ --------- ---------- ---------- Accumulation unit value, beginning of period $ 11.95 $ 9.80 $ 10.00 Income from operations: Net investment income (loss) ............ .03 .45 .71 Net realized and unrealized gain (loss) on investments ............ 2.55 1.70 (.91) --------- ---------- ---------- Total income (loss) from operations ... 2.58 2.15 (.20) --------- ---------- ---------- Accumulation unit value, end of period ..... $ 14.53 $ 11.95 $ 9.80 ========= ========== ========== Total return ............................... 21.57% 21.96% (2.02)% Ratios and supplemental data: Net assets at end of period (in thousands) $ 72,267 $ 37,049 $ 21,672 Ratio of net investment income (loss) to average net assets** .................... .29% 4.25% 7.39% - ------------ * The above table illustrates the change for a unit outstanding computed using average units outstanding through each period. ** This ratio is annualized for the period ended September 30, 1996. \dagger\ The inception date of this sub-account was March 1, 1994. The total return is not annualized.
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 10 WRL SERIES LIFE ACCOUNT EQUITY-INCOME SUB-ACCOUNT (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS ASSETS: SEPTEMBER 30, 1996 ------------------ Investments at net asset value: WRL Series Fund, Inc.: Equity-Income Portfolio (3,657,160.333 shares; cost $ 43,154,636) .................................. $ 50,638,542 Accrued transfers from (to) depositor - net ............ (53,412) ------------ Total assets ........................................ 50,585,130 LIABILITIES: ............................................. 0 ------------ Total net assets .................................... $ 50,585,130 ============ EQUITY ACCOUNTS: Policyowners' equity: Equity-Income sub-account (3,414,735.720554 units; $ 14.813776 unit value) ............................. $ 50,585,130 ------------ Total equity ........................................ $ 50,585,130 ============ STATEMENT OF OPERATIONS NINE MONTHS ENDED INVESTMENT INCOME: SEPTEMBER 30, 1996 ------------------ Dividend income ......................................... $ 312,575 Capital gain distributions .............................. 84,620 ---------- 397,195 EXPENSES: Mortality and expense risk charges ...................... 302,955 ---------- Net investment income (loss) .......................... 94,240 ---------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions ............................... 228,689 Unrealized appreciation (depreciation) .................. 3,032,915 ---------- Net gain (loss) on investments ........................ 3,261,604 ---------- Net increase (decrease) in net assets resulting from operations .......................... $3,355,844 ==========
STATEMENT OF CHANGES IN EQUITY ACCOUNTS NINE MONTHS ENDED YEAR ENDED OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995 ------------------ ----------------- Net investment income (loss) ............... $ 94,240 $ 1,756,089 Net gain (loss) on investments ............. 3,261,604 4,992,475 ----------- ----------- Net increase (decrease) in equity accounts resulting from operations ................. 3,355,844 6,748,564 ----------- ----------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed) ........ 12,500,597 14,236,727 ----------- ----------- Less cost of units redeemed: Administrative charges .................... 3,263,409 3,380,854 Policy loans .............................. 716,938 657,750 Surrender benefits ........................ 853,076 918,863 Death benefits ............................ 86,163 28,153 ----------- ----------- 4,919,586 4,985,620 ----------- ---------- Increase (decrease) in equity accounts from capital unit transactions ............... 7,581,011 9,251,107 ----------- ----------- Net increase (decrease) in equity accounts 10,936,855 15,999,671 EQUITY ACCOUNTS: Beginning of period ........................ 39,648,275 23,648,604 ----------- ----------- End of period .............................. $50,585,130 $39,648,275 =========== ===========
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 11 WRL SERIES LIFE ACCOUNT EQUITY-INCOME SUB-ACCOUNT (UNAUDITED) - -------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED
SEPT. 30 DECEMBER 31 -------- -------------------------------- 1996 1995 1994 1993\dagger\ -------- ------- ------- ------- Accumulation unit value, beginning of period $ 13.74 $ 11.12 $ 11.28 $ 10.00 Income from operations: Net investment income (loss) ............ .03 .68 .18 .19 Net realized and unrealized gain (loss) on investments ............ 1.04 1.94 (.34) 1.09 -------- ------- ------- ------- Total income (loss) from operations ... 1.07 2.62 (.16) 1.28 -------- ------- ------- ------- Accumulation unit value, end of period ..... $ 14.81 $ 13.74 $ 11.12 $ 11.28 ======== ======= ======= ======= Total return ............................... 7.82% 23.55% (1.42)% 12.81% Ratios and supplemental data: Net assets at end of period (in thousands) $50,585 $39,648 $23,649 $13,343 Ratio of net investment income (loss) to average net assets** .................... .28% 5.47% 1.93% 1.89% - -------------- * The above table illustrates the change for a unit outstanding computed using average units outstanding through each period. ** This ratio is annualized for the period ended September 30, 1996. \dagger\ The inception date of this sub-account was March 1, 1993. The total return is not annualized.
The notes to the financial statements are an integral part of this report. - ------------------------------------------------------------------------------ 12 WRL SERIES LIFE ACCOUNT AGGRESSIVE GROWTH SUB-ACCOUNT (UNAUDITED) - ------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS ASSETS: SEPTEMBER 30, 1996 ------------------ Aggressive Investments at net asset value: WRL Series Fund, Inc.: Aggressive Growth Portfolio (3,454,037.947 shares; cost $ 45,039,041) ................................... $ 48,078,822 Accrued transfers from (to) depositor - net ............. (46,950) ------------ Total assets ......................................... 48,031,872 ------------ LIABILITIES: .............................................. 0 ------------ Total net assets ..................................... $ 48,031,872 ============ EQUITY ACCOUNTS: Policyowners' equity: Aggressive Growth sub-account (3,364,595.750104 units; $14.275674 unit value) ............................... $ 48,031,872 ------------ Total equity ......................................... $ 48,031,872 ============ STATEMENT OF OPERATIONS NINE MONTHS ENDED INVESTMENT INCOME: SEPTEMBER 30, 1996 ------------------ Dividend income ........................................ $ 614,817 Capital gain distributions ............................. 216,587 ---------- 831,404 EXPENSES: Mortality and expense risk charges ..................... 278,502 ---------- Net investment income (loss) ......................... 552,902 ---------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions .............................. 1,954,191 Unrealized appreciation (depreciation) ................. 22,556 ---------- Net gain (loss) on investments ....................... 1,976,747 ---------- Net increase (decrease) in net assets resulting from operations ......................... $2,529,649 ==========
STATEMENT OF CHANGES IN EQUITY ACCOUNTS NINE MONTHS ENDED YEAR ENDED OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995 ------------------ ----------------- Net investment income (loss) ............... $ 552,902 $ 663,994 Net gain (loss) on investments ............. 1,976,747 4,424,350 ----------- ------------ Net increase (decrease) in equity accounts resulting from operations ................. 2,529,649 5,088,344 ----------- ------------ EQUITY TRANSACTIONS: Proceeds from units sold (redeemed) ........ 18,767,881 23,169,917 ----------- ------------ Less cost of units redeemed: Administrative charges .................... 4,483,421 2,568,298 Policy loans .............................. 609,118 627,821 Surrender benefits ........................ 1,070,651 712,307 Death benefits ............................ 6,437 80,922 ----------- ------------ 6,169,627 3,989,348 ----------- ------------ Increase (decrease) in equity accounts from capital unit transactions ............... 12,598,254 19,180,569 ----------- ------------ Net increase (decrease) in equity accounts 15,127,903 24,268,913 Depositor's equity contribution (redemption) 0 (274,290) EQUITY ACCOUNTS: Beginning of period ........................ 32,903,969 8,909,346 ----------- ------------ End of period .............................. $48,031,872 $ 32,903,969 =========== ============
The notes to the financial statements are an integral part of this report. - ------------------------------------------------------------------------------- 13
WRL SERIES LIFE ACCOUNT AGGRESSIVE GROWTH SUB-ACCOUNT (UNAUDITED) - ------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED SEPT. 30 DECEMBER 31 -------- ------------------ 1996 1995 1994\dagger\ -------- ------- ------ Accumulation unit value, beginning of period $ 13.43 $ 9.82 $10.00 Income from operations: Net investment income (loss) ............ .18 .37 (.06) Net realized and unrealized gain (loss) on investments ............ .67 3.24 (.12) ------- ------- ------ Total income (loss) from operations ... .85 3.61 (.18) ------- ------- ------ Accumulation unit value, end of period ..... $ 14.28 $ 13.43 $ 9.82 ======= ======= ====== Total return ............................... 6.33% 36.79% (1.85)% Ratios and supplemental data: Net assets at end of period (in thousands) $48,032 $32,904 $8,909 Ratio of net investment income (loss) to average net assets** .................... 1.81% 2.93% (.60)%
* The above table illustrates the change for a unit outstanding computed using average units outstanding through each period. ** This ratio is annualized for the period ended September 30, 1996 \dagger\ The inception date of this sub-account was March 1, 1994. The total return is not annualized. The notes to the financial statements are an integral part of this report. - ------------------------------------------------------------------------------- 14 WRL SERIES LIFE ACCOUNT BALANCED SUB-ACCOUNT (UNAUDITED) - ------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS ASSETS: SEPTEMBER 30, 1996 ------------------ Investments at net asset value: WRL Series Fund, Inc.: Balanced Portfolio (478,127.36 shares; cost $ 4,853,852) .................................. $ 5,273,193 Accrued transfers from (to) depositor - net ........... (6,158) Total assets ....................................... 5,267,035 LIABILITIES: ............................................ 0 ----------- Total net assets ................................... $ 5,267,035 =========== EQUITY ACCOUNTS: Policyowners' equity: Balanced sub-account (456,622.641047 units; $ 11.534766 unit value) ............................ $ 5,267,035 ----------- Total equity ....................................... $ 5,267,035 =========== STATEMENT OF OPERATIONS NINE MONTHS ENDED INVESTMENT INCOME: SEPTEMBER 30, 1996 ------------------ Dividend income .......................................... $ 31,381 Capital gain distributions ............................... 0 -------- 31,381 EXPENSES: Mortality and expense risk charges ....................... 31,297 -------- Net investment income (loss) ........................... 84 -------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions ................................ 67,906 Unrealized appreciation (depreciation) ................... 106,741 -------- Net gain (loss) on investments ......................... 174,647 -------- Net increase (decrease) in net assets resulting from operations ........................... $174,731 ======== WRL SERIES LIFE ACCOUNT BALANCED SUB-ACCOUNT (UNAUDITED) - --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN EQUITY ACCOUNTS NINE MONTHS ENDED YEAR ENDED OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995 ------------------ ----------------- Net investment income (loss) ............... $ 84 $ 102,635 Net gain (loss) on investments ............. 174,647 401,549 ----------- ---------- Net increase (decrease) in equity accounts resulting from operations ................. 174,731 504,184 ----------- ---------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed) ........ 2,043,775 1,545,514 ----------- ---------- Less cost of units redeemed: Administrative charges .................... 404,262 327,290 Policy loans .............................. 55,007 29,025 Surrender benefits ........................ 63,488 27,726 Death benefits ............................ 3,933 14,881 ----------- ---------- 526,690 398,852 ----------- ---------- Increase (decrease) in equity accounts from capital unit transactions ............... 1,517,085 1,146,662 ----------- ---------- Net increase (decrease) in equity accounts 1,691,816 1,650,846 Depositor's equity contribution (redemption) (220,175) 0 EQUITY ACCOUNTS: Beginning of period ........................ 3,795,394 2,144,548 ----------- ---------- End of period .............................. $ 5,267,035 $3,795,394 =========== ==========
The notes to the financial statements are an integral part of this report. - ------------------------------------------------------------------------------- 15
WRL SERIES LIFE ACCOUNT BALANCED SUB-ACCOUNT (UNAUDITED) - ------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED SEPT.30 DECEMBER 31 -------- -------------------- 1996 1995 1994\dagger\ -------- -------- ------- Accumulation unit value, beginning of period $ 11.13 $ 9.37 $ 10.00 Income from operations: Net investment income (loss) ............ .00 .37 .22 Net realized and unrealized gain (loss) on investments ............ .40 1.39 (.85) -------- -------- ------- Total income (loss) from operations ... .40 1.76 (.63) -------- -------- ------- Accumulation unit value, end of period ..... $ 11.53 $ 11.13 $ 9.37 ======== ======== ======= Total return ............................. 3.6 18.73% (6.29)% Ratios and supplemental data: Net assets at end of period (in thousands) $ 5,267 $ 3,795 $ 2,145 Ratio of net investment income (loss) to average net assets** .................... .00% 3.59% 2.55%
* The above table illustrates the change for a unit outstanding computed using average units outstanding through each period. ** This ratio is annualized for the period ended September 30, 1996 \dagger\ The inception date of this sub-account was March 1, 1994. The total return is not annualized. The notes to the financial statements are an integral part of this report. - ------------------------------------------------------------------------------- 16 WRL SERIES LIFE ACCOUNT EMERGING GROWTH SUB-ACCOUNT (UNAUDITED) - ------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS ASSETS: SEPTEMBER 30, 1996 ------------------ Investments at net asset value: WRL Series Fund, Inc.: Emerging Growth Portfolio (5,215,027.007 shares; cost $ 72,827,461) ................................... $104,681,427 Accrued transfers from (to) depositor - net ............. 54,104 ------------ Total assets ......................................... 104,735,531 ------------ LIABILITIES: .............................................. 0 ------------ Total net assets ..................................... $104,735,531 ============ EQUITY ACCOUNTS: Policyowners' equity: Emerging Growth sub-account (5,143,416.816593 units; $ 20.363026 unit value) .............................. $104,735,531 ------------ Total equity ......................................... $104,735,531 ============ STATEMENT OF OPERATIONS NINE MONTHS ENDED INVESTMENT INCOME: SEPTEMBER 30, 1996 ------------------ Dividend income ....................................... $ 3,998 Capital gain distributions ............................ 178,386 ------------ 182,384 EXPENSES: Mortality and expense risk charges .................... 564,594 Net investment income (loss) ........................ (382,210) ------------ Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions ............................. 858,061 Unrealized appreciation (depreciation) ................ 17,300,721 ------------ Net gain (loss) on investments ...................... 18,158,782 ------------ Net increase (decrease) in net assets resulting from operations ........................ $ 17,776,572 ============
STATEMENT OF CHANGES IN EQUITY ACCOUNTS NINE MONTHS ENDED YEAR ENDED OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995 ------------------ ----------------- Net investment income (loss) ............... $ (382,210) $ 2,356,904 Net gain (loss) on investments ............. 18,158,782 16,180,870 ------------- ----------- Net increase (decrease) in equity accounts resulting from operations ................. 17,776,572 18,537,774 ------------- ----------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed) ........ 28,842,554 21,556,186 ------------- ----------- Less cost of units redeemed: Administrative charges .................... 6,379,364 5,846,452 Policy loans .............................. 1,447,069 1,387,434 Surrender benefits ........................ 1,930,578 1,602,690 Death benefits ............................ 31,537 38,971 ------------- ----------- 9,788,548 8,875,547 Increase (decrease) in equity accounts from capital unit transactions ............... 19,054,006 12,680,639 ------------- ----------- Net increase (decrease) in equity accounts 36,830,578 31,218,413 EQUITY ACCOUNTS: Beginning of period ........................ 67,904,953 36,686,540 ------------- ----------- End of period .............................. $ 104,735,531 $67,904,953 ============= ===========
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 17
WRL SERIES LIFE ACCOUNT EMERGING GROWTH SUB-ACCOUNT (UNAUDITED) - -------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED SEPT. 30 DECEMBER 31 -------- -------------------------------- 1996 1995 1994 1993\dagger\ -------- -------- -------- -------- Accumulation unit value, beginning of period ........ $ 16.56 $ 11.38 $ 12.40 $ 10.00 Income from operations: Net investment income (loss) ..................... (.08) .65 (.09) (.09) Net realized and unrealized gain (loss) on investments ..................... 3.88 4.53 (.93) 2.49 -------- -------- -------- ------- Total income (loss) from operations ............ 3.80 5.18 (1.02) 2.40 -------- -------- -------- ------- Accumulation unit value, end of period .............. $ 20.36 $ 16.56 $ 11.38 $ 12.40 ======== ======== ======== ======= Total return ........................................ 22.98% 45.49% (8.18)% 23.96% Ratios and supplemental data: Net assets at end of period (in thousands) $104,736 $67,905 $ 36,687 $ 18,620 Ratio of net investment income (loss) to average net assets** ............................. (.62)% 4.66% (.86)% (.77)%
* The above table illustrates the change for a unit outstanding computed using average units outstanding through each period. ** This ratio is annualized for the period ended September 30, 1996 \dagger\ The inception date of this sub-account was March 1, 1993. The total return is not annualized. The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 18 WRL SERIES LIFE ACCOUNT UTILITY SUB-ACCOUNT (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS ASSETS: SEPTEMBER 30, 1996 ------------------ Investments at net asset value: WRL Series Fund, Inc.: Utility Portfolio (398,719,984 shares; cost $ 4,334,954) .................................. $4,481,093 Accrued transfers from (to) depositor - net ........... 315 ---------- Total assets ....................................... 4,481,408 ---------- LIABILITIES: ............................................ 0 ---------- Total net assets ................................... $4,481,408 ========== EQUITY ACCOUNTS: Policyowners' equity: Utility sub-account (376,602.892904 units; $ 11.899559 unit value) ..... $4,481,408 ---------- Total equity ....................................... $4,481,408 ========== STATEMENT OF OPERATIONS NINE MONTHS ENDED INVESTMENT INCOME: SEPTEMBER 30, 1996 ------------------ Dividend income ..................................... $ 24,453 Capital gain distributions .......................... 1,948 --------- 26,401 EXPENSES: Mortality and expense risk charges .................. 24,289 --------- Net investment income (loss) ...................... 2,112 --------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions ........................... 108,198 Unrealized appreciation (depreciation) .............. (98,824) --------- Net gain (loss) on investments .................... 9,374 --------- Net increase (decrease) in net assets resulting from operations ...................... $ 11,486 =========
STATEMENT OF CHANGES IN EQUITY ACCOUNTS NINE MONTHS ENDED YEAR ENDED OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995 ------------------ ----------------- Net investment income (loss) ................ $ 2,112 $ 88,634 Net gain (loss) on investments .............. 9,374 336,528 ----------- ---------- Net increase (decrease) in equity accounts resulting from operations .................. 11,486 425,162 ----------- ---------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed) ......... 2,489,074 1,368,262 ----------- ---------- Less cost of units redeemed: Administrative charges ..................... 303,641 221,419 Policy loans ............................... 43,852 26,862 Surrender benefits ......................... 67,364 126,576 Death benefits ............................. 2,733 2,896 ----------- ---------- 417,590 377,753 Increase (decrease) in equity accounts from capital unit transactions ................ 2,071,484 990,509 ----------- ---------- Net increase (decrease) in equity accounts . 2,082,970 1,415,671 Depositors' equity contribution (redemption) (232,644) 0 EQUITY ACCOUNTS: Beginning of period ......................... 2,631,082 1,215,411 ----------- ---------- End of period ............................... $ 4,481,408 $2,631,082 =========== ==========
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 19 WRL SERIES LIFE ACCOUNT UTILITY SUB-ACCOUNT (UNAUDITED) - -------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED
SEPT. 30 DECEMBER 31 -------- -------------------- 1996 1995 1994\dagger\ -------- -------- ------- Accumulation unit value, beginning of period $ 11.77 $ 9.49 $ 10.00 Income from operations: Net investment income (loss) ............ .01 .49 .29 Net realized and unrealized gain (loss) on investments ............ .12 1.79 (.80) ------- ------- ------- Total income (loss) from operations ... .13 2.28 (.51) ------- ------- ------- Accumulation unit value, end of period ..... $ 11.90 $ 11.77 $ 9.49 ======= ======== ======= Total return ............................... 1.06% 24.14% (5.15)% Ratios and supplemental data: Net assets at end of period (in thousands) $ 4,481 $ 2,631 $ 1,215 Ratio of net investment income (loss) to average net assets ...................... .08% 4.57% 3.09% - ------------ * The above table illustrates the change for a unit outstanding computed using average units outstanding through each period. ** This ratio is annualized for the period ended September 30, 1996 \dagger\ The inception date of this sub-account was March 1, 1994. The total return is not annualized.
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 20 WRL SERIES LIFE ACCOUNT TACTICAL ASSET ALLOCATION SUB-ACCOUNT (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS ASSETS: SEPTEMBER 30, 1996 ------------------ Investments at net asset value: WRL Series Fund, Inc.: Tactical Asset Allocation Portfolio (1,217,272.416 shares; cost $ 13,823,979) ........ $ 14,885,662 Accrued transfers from (to) depositor - net ......... (21,556) ------------ Total assets ..................................... 14,864,106 ------------ LIABILITIES: .......................................... 0 ------------ Total net assets ................................. $ 14,864,106 ============ EQUITY ACCOUNTS: Policyowners' equity: Tactical Asset Allocation sub-account (1,173,005.980111 units; $ 12.671808 unit value) . $ 14,864,106 ------------ Total equity ..................................... $ 14,864,106 ============ STATEMENT OF OPERATIONS NINE MONTHS ENDED INVESTMENT INCOME: SEPTEMBER 30, 1996 ------------------ Dividend income ....................................... $ 99,486 Capital gain distributions ............................ 0 -------- 99,486 EXPENSES: Mortality and expense risk charges .................... 86,544 -------- Net investment income (loss) ........................ 12,942 -------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions ............................. 296,655 Unrealized appreciation (depreciation) ................ 445,964 -------- Net gain (loss) on investments ...................... 742,619 -------- Net increase (decrease) in net assets resulting from operations ........................ $755,561 ========
STATEMENT OF CHANGES IN EQUITY ACCOUNTS NINE MONTHS ENDED PERIOD ENDED OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995* ----------------- ------------------ Net investment income (loss) ............................... $ 12,942 $ 314,171 Net gain (loss) on investments ............................. 742,619 733,874 ----------- ----------- Net increase (decrease) in equity accounts resulting from operations ................................. 755,561 1,048,045 ----------- ----------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed) ........................ 6,456,969 9,081,189 ----------- ----------- Less cost of units redeemed: Administrative charges ..................................... 767,103 434,848 Policy loans ............................................... 253,319 145,685 Surrender benefits ......................................... 773,024 70,630 Death benefits ............................................. 835 22,440 ----------- ----------- 1,794,281 673,603 Increase (decrease) in equity accounts from capital unit transactions ................................. 4,662,688 8,407,586 ----------- ----------- Net increase (decrease) in equity accounts ................. 5,418,249 9,455,631 Depositor's equity contribution (redemption) ............... 0 (9,774) EQUITY ACCOUNTS: Beginning of period ........................................ 9,445,857 0 ----------- ----------- End of period .............................................. $14,864,106 $ 9,445,857 =========== =========== *The inception date of this sub-account was January 3, 1995
The notes to the financial statements are an integral part of this report. - -------------------------------------------------------------------------------- 21 WRL SERIES LIFE ACCOUNT TACTICAL ASSET ALLOCATION SUB-ACCOUNT (UNAUDITED) - ------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED SEPT. 30 DECEMBER 31 ---------- ----------- 1996 1995\dagger\ ---------- ------------ Accumulation unit value, beginning of period $ 11.90 $ 10.00 Income from operations: Net investment income (loss) ................. .01 .61 Net realized and unrealized gain (loss) on investments ................. .76 1.29 ---------- --------- Total income (loss) from operations ........ .77 1.90 ---------- --------- Accumulation unit value, end of period .......... $ 12.67 $ 11.90 ========== ========= Total return .................................... 6.46% 19.03% Ratios and supplemental data: Net assets at end of period (in thousands) .... $ 14,864 $ 9,446 Ratio of net investment income (loss) to average net assets** ......................... .14% 5.47% *The above table illustrates the change for a unit outstanding computed using average units outstanding through each period. ** This ratio is annualized for the period ended September 30, 1996. \dagger\ The inception date of this sub-account was January 3, 1995. The total return is not annualized. The notes to the financial statements are an integral part of this report. - ------------------------------------------------------------------------------- 22 WRL SERIES LIFE ACCOUNT C.A.S.E. GROWTH SUB-ACCOUNT (UNAUDITED) - ------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS ASSETS: SEPTEMBER 30, 1996 - ------- ------------------ Investments at net asset value: WRL Series Fund, Inc.: C.A.S.E. Growth Portfolio (211,216.975 shares; cost $ 2,608,808) .............................. $ 2,715,157 Accrued transfers from (to) depositor - net ....... (56,062) ----------- Total assets ................................... 2,659,095 ----------- LIABILITIES: ........................................ 0 ----------- Total net assets ............................... $ 2,659,095 =========== EQUITY ACCOUNTS: Policyowners' equity: C.A.S.E. Growth sub-account (258,931.483192 units; $ 10.171290 unit value) ........................ $ 2,633,667 Depositor's equity: C.A.S.E. Growth sub-account (2,500.000000 units; $ 10.171290 unit value ......................... 25,428 ----------- Total equity ................................... $ 2,659,095 =========== STATEMENT OF OPERATIONS PERIOD ENDED INVESTMENT INCOME: ....................................... SEPTEMBER 30, 1996* ------------------- Dividend income ....................................... $ 739 Capital gain distributions ............................ 0 ----------- 739 EXPENSES: Mortality and expense risk charges ..................... 4,077 ----------- Net investment income (loss) ......................... (3,338) ----------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions .............................. (2,194) Unrealized appreciation (depreciation) ................. 106,349 ----------- Net gain (loss) on investments ....................... 104,155 ----------- Net increase (decrease) in net assets resulting from operations ......................... $ 100,817 =========== STATEMENT OF CHANGES IN EQUITY ACCOUNTS PERIOD ENDED OPERATIONS: SEPTEMBER 30, 1996* ------------------- Net investment income (loss)............................. $ (3,338) Net gain (loss) on investments........................... 104,155 ---------- Net increase (decrease) in equity accounts resulting from operations............................... 100,817 ---------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed)...................... 2,590,910 Less cost of units redeemed: Administrative charges.................................. 47,280 Policy loans............................................ 0 Surrender benefits...................................... 10,352 Death benefits.......................................... 0 ---------- 57,632 Increase (decrease) in equity accounts from capital unit transactions............................ 2,533,278 Net increase (decrease) in equity accounts............. 2,634,095 Depositor's equity contribution (redemption)............ 25,000 EQUITY ACCOUNTS: Beginning of period..................................... 0 End of period........................................... $2,659,095 ========== *The inception date of this sub-account was May 1, 1996. The notes of the financial statements are an integral part of this report. - ------------------------------------------------------------------------------- 23 WRL SERIES LIFE ACCOUNT C.A.S.E. GROWTH SUB-ACCOUNT (UNAUDITED) - ------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED SEPTEMBER 30 ------------ 1996\dagger\ ------------ Accumulation unit value, beginning of period $ 10.00 Income from operations: Net investment income (loss).......................... (.05) Net realized and unrealized gain (loss) on investments.......................... .22 ------- Total income (loss) from operations................. .17 ------- Accumulation unit value, end of period .................. $ 10.17 ======= Total return............................................. 1.71% Ratios and supplemental data: Net assets at end of period (in thousands) $ 2,659 Ratio of net investment income (loss) to average net assets**............................... (1.67)% *The above table illustrates the change for a unit outstanding computed using average units outstanding through each period. ** This ratio is annualized for the period ended September 30, 1996. \dagger\ The inception date of this sub-account was May 1, 1996. The total return is not annualized. The notes to the financial statements are an integral part of this report. - ------------------------------------------------------------------------------- 24 WRL SERIES LIFE ACCOUNT VALUE EQUITY SUB-ACCOUNT (UNAUDITED) - ------------------------------------------------------------------------------- STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS ASSETS: SEPTEMBER 30, 1996 - ------- ------------------ Investments at net asset value: WRL Series Fund, Inc.: Value Equity Portfolio (503,729.939 shares; cost $ 5,170,272).............................. $5,351,399 Accrued transfers from (to) depositor - net 31,656 ---------- Total assets................................... 5,383,055 ---------- LIABILITIES:........................................ 0 ---------- Total net assets............................... $5,383,055 ========== EQUITY ACCOUNTS: Policyowners' equity: Value Equity sub-account (488,616.296490 units; $ 10.583725 unit value)........................ $5,171,381 Depositor's equity: Value Equity sub-account (20,000.000000 units; $ 10.583725 unit value......................... 211,674 ---------- Total equity................................... $5,383,055 ========== STATEMENT OF OPERATIONS PERIOD ENDED INVESTMENT INCOME: SEPTEMBER 30, 1996* ------------------- Dividend income......................................... $ 0 Capital gain distributions.............................. 0 --------- 0 EXPENSES: Mortality and expense risk charges ....................... 5,878 --------- Net investment income (loss)............................ (5,878) --------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions................................. 3,604 Unrealized appreciation (depreciation .................... 181,127 --------- Net gain (loss) on investments.......................... 184,731 --------- Net increase (decrease) in net assets resulting from operations............................ $ 178,853 ========= STATEMENT OF CHANGES IN EQUITY ACCOUNTS PERIOD ENDED OPERATIONS: SEPTEMBER 30, 1996* ------------------- Net investment income (loss)................................ $ (5,878) Net gain (loss) on investments.............................. 184,731 --------- Net increase (decrease) in equity accounts resulting from operations.................................. 178,853 --------- EQUITY TRANSACTIONS: Proceeds from units sold (repurchased): Net payments (redemptions)................................. 5,063,012 --------- Less cost of units redeemed: Cost of insurance and administrative charges............... 38,783 Policy loans............................................... 0 Surrender benefits......................................... 20,027 Death benefits............................................. 0 --------- 58,810 --------- Increase (decrease) in equity accounts from capital unit transactions................................ 5,004,202 --------- Net increase (decrease) in equity accounts................. 5,183,055 Depositor's equity contribution (redemption)................ 200,000 EQUITY ACCOUNTS: Beginning of period......................................... 0 End of period...............................................$5,383,055 ========== *The inception date of this sub-account was May 1, 1996 The notes to the financial statements are an integral part of this report. - ------------------------------------------------------------------------------- 25 WRL SERIES LIFE ACCOUNT VALUE EQUITY SUB-ACCOUNT (UNAUDITED) - ------------------------------------------------------------------------------- SELECTED PER UNIT DATA AND RATIOS* FOR THE PERIOD ENDED SEPTEMBER 30 -------------- 1996\dagger\ Accumulation unit value, beginning of period $ 10.00 Income from operations: Net investment income (loss) (.15) Net realized and unrealized gain (loss) on investments .73 ------- Total income (loss) from operations .58 ------- Accumulation unit value, end of period $ 10.58 ======= Total return.................................................... 5.84% Ratios and supplemental data: Net assets at end of period (in thousands) 5,383 Ratio of net investment income to average net assets**......................................... (3.64)% *The above table illustrates the change for a unit outstanding computed using average units outstanding through each period. ** This ratio is annualized for the period ended September 30, 1996. \dagger\ The inception date of this sub-account was May 1, 1996. The total return is not annualized. The notes to the financial stateemnts are an integral part of this report. - ------------------------------------------------------------------------------- 26 WRL SERIES LIFE ACCOUNT NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - ------------------------------------------------------------------------------- SEPTEMBER 30, 1996 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 the 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 thirteen 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 J.P. Morgan Investment Management Inc. Bond Janus Capital Corporation (JCC) Growth JCC Short-to-Intermediate AEGON USA Investment Government Management, Inc. ("AEGON Management") Global JCC Equity-Income Luther King Asset Management Inc. 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 C.A.S.E. Growth C.A.S.E. Management, Inc. Value Equity NWQ Investment Management Company, Inc. 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 May 1, 1996, WRL made an initial contribution to the Life Account C.A.S.E. Growth and Value Equity sub-accounts, which in turn invested in the respective portfolios. The amount of the contribution and the units received are as follows: SUB-ACCOUNT CONTRIBUTION UNITS C.A.S.E. Growth $ 25,000 2,500.000000 Value Equity 200,000 20,000.000000 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 the financial statements in accordance wth generally accepted accounting principles requires management to make estimates and assumptions that effect 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 September 30, 1996. Investment transactions are accounted for on the trade date, using the Fund NAV per share 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. - ------------------------------------------------------------------------------- 27 NOTES TO FINANCIAL STATEMENTS WRL SERIES LIFE ACCOUNT (UNAUDITED) - ------------------------------------------------------------------------------- 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. 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 semi-annually, 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 September 30, 1996 the equity accounts include net unrealized appreciation (depreciation) on investments of: SUB-ACCOUNT ----------- Money Market.................$ n/a Bond......................... (311,755) Growth....................... 100,582,396 Short-to-Intermediate Government 12,874 Global....................... 13,010,973 Equity-Income................ 7,483,906 Emerging Growth.............. 31,853,966 Aggressive Growth............ 3,039,781 Balanced..................... 419,341 Utility...................... 146,139 Tactical Asset Allocation.... 1,061,683 C.A.S.E. Growth.............. 106,349 Value Equity................. 181,127 - ------------------------------------------------------------------------------- 28 WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO BALANCE SHEET - STATUTORY BASIS AS OF SEPTEMBER 30, 1996 (IN THOUSANDS) (UNAUDITED) ASSETS ------ Bonds $ 397,320 Common stocks and mutual funds 610 Mortgage loans on real estate 6,079 Real estate 7,289 Policy loans 47,942 Cash and short-term investments (8,163) Separate account assets 3,295,321 Other assets 17,235 ---------- Total assets $3,763,633 ========== LIABILITIES AND CAPITAL AND SURPLUS Policy reserves $ 299,797 Other policy liabilities 30,655 Amounts due or accrued 14,118 Separate account liabilities 3,290,269 Borrowed money 25,900 Asset valuation reserve 6,033 ---------- Total liabilities 3,666,772 Total capital and surplus 96,861 ---------- Total liabilities, capital, and surplus $3,763,633 ========== See note to financial statements WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO STATEMENT OF OPERATIONS - STATUTORY BASIS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 (IN THOUSANDS) (UNAUDITED) Premium income $750,143 Net investment income 27,905 Net realized capital gains (losses) 89 Other income 10,172 Benefit payments incurred (241,024) Decrease in policy and contract reserves 94,965 Net transfers to separate accounts (491,331) Operating costs (143,580) --------- Income before income taxes 7,339 Federal income taxes (6,002) --------- Net income (loss) $ 1,337 ======== See note to financial statements WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO STATEMENT OF CHANGES IN CAPITAL AND SURPLUS-STATUTORY BASIS (IN THOUSANDS) (UNAUDITED)
ADDITIONAL TOTAL COMMON PAID-IN UNASSIGNED CAPITAL AND STOCK CAPITAL SURPLUS SURPLUS ------ ---------- ---------- ----------- Balance at December 31, 1995 $1,500 $68,015 $ 28,424 $ 97,939 ------ ------- -------- -------- Net income 1,337 1,337 Change in reserve valuation basis -- -- (2,246) (2,246) Change in Unrealized gains (losses) -- -- 147 147 Change in non-admitted assets -- -- 96 96 Change in asset valuation reserves -- -- (444) (444) Change in separate accounts surplus -- -- 32 32 ------ ------- -------- -------- Balance at September 30, 1996 $1,500 $68,015 $ 27,346 $ 96,861 ====== ======= ======== ======== See note to financial statements
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO STATEMENT OF CASH FLOWS - STATUTORY BASIS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 (IN THOUSANDS) (UNAUDITED) Operations: Cash from insurance operations $(126,122) Investment income received 28,529 Federal income taxes (5,624) ---------- Cash provided (used) by operations (103,217) Investment activities: Proceeds from sale or maturity of long-term invested assets 92,739 Cost of long-term investments acquired (32,327) Other, net 10,243 ---------- Cash provided (used) by investment activities 70,655 Financing activities: Increase (decrease) in borrowed money 25,900 Cash provided by (used in) financing activities 25,900 Net increase (decrease) in cash and short-term investments (6,662) Cash and short-term investments: Beginning of year (1,501) ---------- End of period $ (8,163) ========== See note to financial statements WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO NOTE TO FINANCIAL STATEMENTS - STATUTORY BASIS AS OF SEPTEMBER 30, 1996 (UNAUDITED) 1. BASIS OF PRESENTATION The accompanying unaudited statutory basis financial statements have been prepared in accordance with statutory accounting principles for interim financial information and the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine-month period ended September 30, 1996 are not necessarily indicative of the results that may be expected for the year ending December 31, 1996. For further information, refer to the accompanying statutory basis financial statements and notes thereto for the year ended December 31, 1995. WRL SERIES LIFE ACCOUNT WRL FREEDOM EQUITY PROTECTOR PROSPECTUS DATED MAY 1, 1996 Incorporated by reference herein is the above-referenced Prospectus dated May 1, 1996, as filed with Post-Effective Amendment No. 12 to the Registration Statement on Form S-6 of WRL Series Life Account, File No. 33-31140 (April 18, 1996) PART II. OTHER INFORMATION UNDERTAKING TO FILE REPORTS Subject to the terms and conditions of Section 15(d) of the Securities Exchange Act of 1934, the undersigned registrant hereby undertakes to file with the Securities and Exchange Commission such supplementary and periodic information, documents, and reports as may be prescribed by any rule or regulation of the Commission heretofore or hereafter duly adopted pursuant to authority conferred in that Section. REPRESENTATION PURSUANT TO SECTION 26(E)(2)(A) Western Reserve Life Assurance Co. of Ohio ("Western Reserve") hereby represents that the fees and charges deducted under the Contracts, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Western Reserve. STATEMENT WITH RESPECT TO INDEMNIFICATION Provisions exist under the Ohio General Corporation Law, the Second Amended Articles of Incorporation of Western Reserve and the Amended Code of Regulations of Western Reserve whereby Western Reserve may indemnify certain persons against certain payments incurred by such persons. The following excerpts contain the substance of these provisions. OHIO GENERAL CORPORATION LAW SECTION 1701.13 AUTHORITY OF CORPORATION. (E)(1) A corporation may indemnify or agree to indemnify any person who was or is a party or is threatened to be made a party, to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, other than an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, trustee, officer, employee, or agent of another corporation (including a subsidiary of this corporation), domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise, against expenses, including attorneys' fees, judgments, fines, and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit, or proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, and with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendre or its equivalent, shall not, of itself create a presumption that the person did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation, and with respect to any criminal action or proceeding, he had reasonable cause to believe that his conduct was unlawful. (2) A corporation may indemnify or agree to indemnify any person who was or is a party, or is threatened to be made a party to any threatened, pending, or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, trustee, officer, employee, or agent of another corporation, domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise, against expenses, including attorneys' fees, actually II-1 and reasonably incurred by him in connection with the defense or settlement of such action or suit if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, except that no indemnification shall be made in respect of any of the following: (a) Any claim, issue, or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of his duty to the corporation unless, and only to the extent that the court of common pleas, or the court in which such action or suit was brought determines upon application that, despite the adjudication of liability, but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses as the court of common pleas or such other court shall deem proper; (b) Any action or suit in which the only liability asserted against a director is pursuant to section 1701.95 of the Revised Code. (3) To the extent that a director, trustee, officer, employee, or agent has been successful on the merits or otherwise in defense of any action, suit, or proceeding referred to in divisions (E)(1) and (2) of this section, or in defense of any claim, issue, or matter therein, he shall be indemnified against expenses, including attorneys' fees, actually and reasonably incurred by him in connection therewith. (4) Any indemnification under divisions (E)(1) and (2) of this section, unless ordered by a court, shall be made by the corporation only as authorized in the specific case upon a determination that indemnification of the director, trustee, officer, employee, or agent is proper in the circumstances because he has met the applicable standard of conduct set forth in divisions (E)(1) and (2) of this section. Such determination shall be made as follows: (a) By a majority vote of a quorum consisting of directors of the indemnifying corporation who were not and are not parties to or threatened with any such action, suit, or proceeding; (b) If the quorum described in division (E)(4)(a) of this section is not obtainable or if a majority vote of a quorum of disinterested directors so directs, in a written opinion by independent legal counsel other than an attorney, or a firm having associated with it an attorney, who has been retained by or who has performed services for the corporation, or any person to be indemnified within the past five years; (c) By the shareholders; (d) By the court of common pleas or the court in which such action, suit, or proceeding was brought. Any determination made by the disinterested directors under division (E)(4)(a) or by independent legal counsel under division (E)(4)(b) of this section shall be promptly communicated to the person who threatened or brought the action or suit by or in the right of the corporation under division (E)(2) of this section, and within ten days after receipt of such notification, such person shall have the right to petition the court of common pleas or the court in which such action or suit was brought to review the reasonableness of such determination. (5)(a) Unless at the time of a director's act or omission that is the subject of an action, suit or proceeding referred to in divisions (E)(1) and (2) of this section, the articles or the regulations of a corporation state by specific reference to this division that the provisions of this division do not apply to the corporation and unless the only liability asserted against a director in an action, suit, or proceeding referred to in divisions (E)(1) and (2) of this section is pursuant to section 1701.95 of the Revised Code, expenses, including attorney's fees, incurred by a director in defending the action, suit, or proceeding shall be paid by the corporation as they are incurred, in advance of the final disposition of the action, suit, II-2 or proceeding upon receipt of an undertaking by or on behalf of the director in which he agrees to do both of the following: (i) Repay such amount if it is proved by clear and convincing evidence in a court of competent jurisdiction that his action or failure to act involved an act or omission undertaken with deliberate intent to cause injury to the corporation or undertaken with reckless disregard for the best interests of the corporation; (ii) Reasonably cooperate with the corporation concerning the action, suit, or proceeding. (b) Expenses, including attorneys' fees incurred by a director, trustee, officer, employee, or agent in defending any action, suit, or proceeding referred to in divisions (E)(1) and (2) of this section, may be paid by the corporation as they are incurred, in advance of the final disposition of the action, suit, or proceeding as authorized by the directors in the specific case upon receipt of an undertaking by or on behalf of the director, trustee, officer, employee, or agent to repay such amount, if it ultimately is determined that he is entitled to be indemnified by the corporation. (6) The indemnification authorized by this section shall not be exclusive of, and shall be in addition to, any other rights granted to those seeking indemnification under the articles or the regulations or any agreement, vote of shareholders or disinterested directors, or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, trustee, officer, employee, or agent and shall inure to the benefit of the heirs, executors, and administrators of such a person. (7) A corporation may purchase and maintain insurance or furnish similar protection, including but not limited to trust funds, letters of credit, or self-insurance on behalf of or for any person who is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, trustee, officer, employee, or agent of another corporation, domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising out of his status as such, whether or not the corporation would have the power to indemnify him against such liability under this section. Insurance may be purchased from or maintained with a person in which the corporation has a financial interest. (8) The authority of a corporation to indemnify persons pursuant to divisions (E)(1) and (2) of this section does not limit the payment of expenses as they are incurred, indemnification, insurance, or other protection that may be provided pursuant to divisions (E)(5), (6), and (7) of this section. Divisions (E)(1) and (2) of this section do not create any obligation to repay or return payments made by the corporation pursuant to divisions (E)(5), (6), or (7). (9) As used in this division, references to "corporation" include all constituent corporations in a consolidation or merger and the new or surviving corporation, so that any person who is or was a director, officer, employee, or agent of such a constituent corporation, or is or was serving at the request of such constituent corporation as a director, trustee, officer, employee or agent of another corporation, domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise, shall stand in the same position under this section with respect to the new or surviving corporation as he would if he had served the new or surviving corporation in the same capacity. SECOND AMENDED ARTICLES OF INCORPORATION OF WESTERN RESERVE ARTICLE EIGHTH EIGHTH: (1) The corporation may indemnify or agree to indemnify any person who was or is a party or is threatened to be made a party, to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, other than an action by or in the right II-3 of the corporation, by reason of the fact that he is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, trustee, officer, employee, or agent of another corporation (including a subsidiary of this corporation), domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise, against expenses, including attorneys' fees, judgments, fines, and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit, or proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, and with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendre or its equivalent, shall not, of itself create a presumption that the person did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation, and with respect to any criminal action or proceeding, he had reasonable cause to believe that his conduct was unlawful. (2) The corporation may indemnify or agree to indemnify any person who was or is a party, or is threatened to be made a party to any threatened, pending, or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, trustee, officer, employee, or agent of another corporation (including a subsidiary of this corporation), domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise against expenses, including attorneys' fees, actually and reasonably incurred by him in connection with the defense or settlement of such action or suit if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, except that no indemnification shall be made in respect of any claim, issue, or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of his duty to the corporation unless, and only to the extent that the court of common pleas, or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability, but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses as the court of common pleas or such other court shall deem proper. (3) To the extent that a director, trustee, officer, employee, or agent has been successful on the merits or otherwise in defense of any action, suit, or proceeding referred to in sections (1) and (2) of this article, or in defense of any claim, issue, or matter therein, he shall be indemnified against expenses, including attorneys' fees, actually and reasonably incurred by him in connection therewith. (4) Any indemnification under sections (1) and (2) of this article, unless ordered by a court, shall be made by the corporation only as authorized in the specific case upon a determination that indemnification of the director, trustee, officer, employee, or agent is proper in the circumstances because he has met the applicable standard of conduct set forth in sections (1) and (2) of this article. Such determination shall be made (a) by a majority vote of a quorum consisting of directors of the indemnifying corporation who were not and are not parties to or threatened with any such action, suit, or proceeding, or (b) if such a quorum is not obtainable or if a majority vote of a quorum of disinterested directors so directs, in a written opinion by independent legal counsel other than an attorney, or a firm having associated with it an attorney, who has been retained by or who has performed services for the corporation, or any person to be indemnified within the past five years, or (c) by the shareholders, or (d) by the court of common pleas or the court in which such action, suit, or proceeding was brought. Any determination made by the disinterested directors under section (4)(a) or by independent legal counsel under section (4)(b) of this article shall be promptly communicated to the person who threatened or brought the action or suit by or in the right of the corporation under section (2) of this article, and within ten days after receipt of such notification, such person shall have the right to petition the court of common pleas or the court in which such action or suit was brought to review the reasonableness of such determination. II-4 (5) Expenses, including attorneys' fees incurred in defending any action, suit, or proceeding referred to in sections (1) and (2) of this article, may be paid by the corporation in advance of the final disposition of such action, suit, or proceeding as authorized by the directors in the specific case upon receipt of a written undertaking by or on behalf of the director, trustee, officer, employee, or agent to repay such amount, unless it shall ultimately be determined that he is entitled to be indemnified by the corporation as authorized in this article. If a majority vote of a quorum of disinterested directors so directs by resolution, said written undertaking need not be submitted to the corporation. Such a determination that a written undertaking need not be submitted to the corporation shall in no way affect the entitlement of indemnification as authorized by this article. (6) The indemnification provided by this article shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under the articles or the regulations or any agreement, vote of shareholders or disinterested directors, or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, trustee, officer, employee, or agent and shall inure to the benefit of the heirs, executors, and administrators of such a person. (7) The Corporation may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, trustee, officer, employee, or agent of another corporation (including a subsidiary of this corporation), domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise against any liability asserted against him and incurred by him in any such capacity or arising out of his status as such, whether or not the corporation would have the power to indemnify him against such liability under this section. (8) As used in this section, references to "the corporation" include all constituent corporations in a consolidation or merger and the new or surviving corporation, so that any person who is or was a director, officer, employee, or agent of such a constituent corporation, or is or was serving at the request of such constituent corporation as a director, trustee, officer, employee or agent of another corporation (including a subsidiary of this corporation), domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise shall stand in the same position under this article with respect to the new or surviving corporation as he would if he had served the new or surviving corporation in the same capacity. (9) The foregoing provisions of this article do not apply to any proceeding against any trustee, investment manager or other fiduciary of an employee benefit plan in such person's capacity as such, even though such person may also be an agent of this corporation. The corporation may indemnify such named fiduciaries of its employee benefit plans against all costs and expenses, judgments, fines, settlements or other amounts actually and reasonably incurred by or imposed upon said named fiduciary in connection with or arising out of any claim, demand, action, suit or proceeding in which the named fiduciary may be made a party by reason of being or having been a named fiduciary, to the same extent it indemnifies an agent of the corporation. To the extent that the corporation does not have the direct legal power to indemnify, the corporation may contract with the named fiduciaries of its employee benefit plans to indemnify them to the same extent as noted above. The corporation may purchase and maintain insurance on behalf of such named fiduciary covering any liability to the same extent that it contracts to indemnify. II-5 AMENDED CODE OF REGULATIONS OF WESTERN RESERVE ARTICLE V INDEMNIFICATION OF DIRECTORS AND OFFICERS Each Director, officer and member of a committee of this Corporation, and any person who may have served at the request of this Corporation as a Director, officer or member of a committee of any other corporation in which this Corporation owns shares of capital stock or of which this Corporation is a creditor (and his heirs, executors and administrators) shall be indemnified by the Corporation against all expenses, costs, judgments, decrees, fines or penalties as provided by, and to the extent allowed by, Article Eighth of the Corporation's Articles of Incorporation, as amended. RULE 484 UNDERTAKING Insofar as indemnification for liability arising under the Securities Act of 1933 (the "Act") may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel, the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. CONTENTS OF REGISTRATION STATEMENT This registration statement comprises the following papers and documents: The facing page The Prospectus, consisting of 98 pages The undertaking to file reports Representation pursuant to Section 26(e)(2)(A) The statement with respect to indemnification The Rule 484 undertaking The signatures Written consent of the following persons: (a) Alan Yaeger (b) Thomas E. Pierpan, Esq. (c) Sutherland, Asbill & Brennan, L.L.P. (d) Ernst & Young LLP (e) Price Waterhouse LLP The following exhibits: 1. The following exhibits correspond to those required by paragraph A to the instructions as to exhibits in Form N-8B-2: II-6 A. (1) Resolution of the Board of Directors of Western Reserve establishing the Series Account (1) (2) Not Applicable (3) Distribution of Policies: (a) Form of Master Service and Distribution Compliance Agreement(5) (b) (i) Form of Broker/Dealer Supervisory and Service Agreement (4) (ii)Form of Broker/Dealer Supervisory and Service Agreement (4) (c) See Exhibit 1.A.(3)(b)(ii) (4) Not Applicable (5) Specimen Flexible Premium Variable Life Insurance Policy (2) (a) Terminal Illness Accelerated Death Benefit Rider (Form Nos. ACCDB-10/94, ACCDB-CT-10/94, ACCDBIN-10/94, ACCDB-10/94MN, ACCDBMS-01/95, ACCDBSC-02/95, ACCDBIL-10/94) (10) (6) (a) Second Amended Articles of Incorporation of Western Reserve (3) (b) Amended Code of Regulations (By-Laws) of Western Reserve (5) (7) Not Applicable (8) (a) Investment Advisory Agreement with the Fund (6) (b) Sub-Advisory Agreement (6) (9) Not Applicable (10) Form of Application for Flexible Premium Variable Life Insurance Policy (2) (11) Memorandum describing issuance, transfer and redemption procedures (4) 2. See Exhibit 1.A. (5) 3. Opinion of Counsel as to the legality of the securities being registered (7) 4. No financial statement will be omitted from the Prospectus pursuant to Instruction 1(b) or (c) of Part I 5. Not Applicable 6. Opinion and consent of Alan Yaeger as to actuarial matters pertaining to th securities being registered (8) 7. Consent of Thomas E. Pierpan, Esq. (10) 8. Consent of Sutherland, Asbill & Brennan, L.L.P. 9. Consent of Ernst & Young LLP 10.Consent of Price Waterhouse LLP 11.(a) Powers of Attorney (10) (b) Power of Attorney - James R. Walker - ---------------------------------------- (1) This exhibit was previously filed on Form S-6 Registration Statement dated September 27, 1985 (File No. 33-506) and is incorporated herein by reference. II-7 (2) This exhibit was previously filed on Form S-6 Registration Statement dated September 25, 1989 (File No. 33-31140) and is incorporated herein by reference. (3) This exhibit was previously filed on Post-Effective Amendment No. 3 to Form S-6 Registration Statement dated May 1, 1989 (File No. 33-506) and is incorporated herein by reference. (4) This exhibit was previously filed on Pre-Effective Amendment No. 1 to Form S-6 Registration Statement dated December 19, 1989 (File No. 33-31140) and is incorporated herein by reference. (5) This exhibit was previously filed on Post-Effective Amendment No. 3 to Form N-4 Registration Statement dated March 1, 1991 (File No. 33-24856) and is incorporated herein by reference. (6) This exhibit was previously filed on Post-Effective Amendment No. 6 to Form N-1A Registration Statement dated March 1, 1991 (File No. 33-507) and is incorporated herein by reference. (7) This exhibit was previously filed on Post-Effective Amendment No. 2 to Form S-6 Registration Statement dated May 1, 1991 (File No. 33-31140) and is incorporated herein by reference. (8) This exhibit was previously filed on Post-Effective Amendment No. 6 to Form S-6 Registration Statement dated February 22, 1994 (File No. 33-31140) and is incorporated herein by reference. (9) This exhibit was previously filed on Post-Effective Amendment No. 7 to Form S-6 Registration Statement dated December 30, 1994 (File No. 33-31140) and is incorporated herein by reference. (10) This exhibit was previously filed on Post-Effective Amendment No. 10 to Form S-6 Registration Statement dated April 26, 1995 (File No. 33-31140) and is incorporated herein by reference. II-8 SIGNATURES Pursuant to the requirements of the Securities Act of 1933, the registrant, WRL Series Life Account, certifies that it meets all the requirements for effectiveness of this Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Post-Effective Amendment No. 13 to its Registration Statement to be signed on its behalf by the undersigned thereunto duly authorized, and its seal to be hereunto affixed and attested, all in the City of Largo, County of Pinellas, Florida on this 20th day of December, 1996. (SEAL) WRL SERIES LIFE ACCOUNT Registrant WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO Depositor ATTEST: /s/ THOMAS E. PIERPAN By: /S/ JOHN R. KENNEY - ------------------------------ -------------------------------- Thomas E. Pierpan John R. Kenney Vice President Chairman of the Board, Chief Executive Officer and President Pursuant to the requirements of the Securities Act of 1933, this Post-Effective Amendment No. 13 to the Registration Statement has been signed below by the following persons in the capacities and on the dates indicated. SIGNATURE AND TITLE DATE ------------------- ---- /s/ JOHN R. KENNEY December 20, 1996 - ----------------------------- John R. Kenney, Chairman of the Board, Chief Executive Officer and President /s/ RICHARD B. FRANZ, II December 20, 1996 - ----------------------------- Richard B. Franz, II, Senior Vice President and Treasurer /s/ ALAN M. YAEGER December 20, 1996 - ----------------------------- Alan M. Yaeger, Executive Vice President, Actuary & Chief Financial Officer* - --------- *Principal Financial Officer /s/ KENNETH P. BEIL December 20, 1996 - ------------------------------- Kenneth P. Beil Vice President & Principal Accounting Officer** /s/ PATRICK S. BAIRD December 20, 1996 - ------------------------------- Patrick S. Baird, Director ***/ /s/ LYMAN H. TREADWAY December 20, 1996 - -------------------------------- Lyman H. Treadway, Director ***/ /s/ JACK E. ZIMMERMAN December 20, 1996 - -------------------------------- Jack E. Zimmerman, Director ***/ /s/ JAMES R. WALKER December 20, 1996 - ------------------------------- James R. Walker, Director ***/ - -------------- **Principal Accounting Officer ***/ /s/ THOMAS E. PIERPAN - --------------------------------- Signed by: Thomas E. Pierpan as Attorney-in-fact EX-99.1 2 EXHIBIT 99.C1 Exhibit 8 Consent of Sutherland, Asbill & Brennan, L.L.P. S.A.B. letterhead December 20, 1996 Board of Directors Western Reserve Life Assurance Co. of Ohio WRL Series Life Account 201 Highland Avenue Largo, Florida 33770 RE: WRL Series Life Account FILE NO. 33-31140 Gentlemen: We hereby consent to the use of our name under the caption "Legal Matters" in the Prospectus contained in Post-Effective Amendment No. 13 to the Registration Statement on Form S-6 (File No. 33-31140) of the WRL Series Life Account filed by Western Reserve Life Assurance Co. of Ohio with the Securities and Exchange Commission. In giving this consent, we do not admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933. Very truly yours, SUTHERLAND, ASBILL & BRENNAN, L.L.P. By: /s/ STEPHEN E. ROTH ------------------------------- Stephen E. Roth EX-99.2 3 EXHIBIT 99.C2 Exhibit 9 Consent of Ernst & Young LLP CONSENT OF INDEPENDENT AUDITORS We consent to the reference to our firm under the caption "Experts" and to the incorporation by reference therein of our report dated February 23, 1996, with respect to the statutory-basis financial statements and schedules of Western Reserve Life Assurance Co. of Ohio incorporated by reference in Post-Effective Amendment No. 13 to Registration Statement (Form S-6 No. 33-31140) and related Prospectus of WRL Series Life Account. ERNST & YOUNG LLP Des Moines, Iowa December 19, 1996 EX-99.3 4 EXHIBIT 99.C3 Exhibit 10 Consent of Price Waterhouse LLP CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in this Prospectus constituting part of this Post-Effective Amendement No. 13 to the registration statement on Form S-6 of the Prospectus dated May 1, 1996, as filed with Post-Effective Amendment No. 12 to the registration statement on Form S-6 of the WRL Series Life Account which includes our report dated January 31, 1996, relating to the financial statements and selected per unit data and ratios of the sub-accounts comprising the WRL Series Life Account, which appears in such Prospectus. We further consent to the reference to us under the heading "Experts" in such Prospectus. PRICE WATERHOUSE LLP Kansas City, Missouri December 24, 1996 EX-99.4 5 EXHIBIT 99.4 Exhibit 11(b) Power of Attorney - James R. Walker POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS, that the undersigned hereby makes, constitutes and appoints WILLIAM H. GEIGER, PRISCILLA I. HECHLER, THOMAS E. PIERPAN and ALAN M. YAEGER, and each of them, severally, his true and lawful attorneys and agents in his name, place and stead and on his behalf (a) to sign and cause to be filed registration statements of WRL Series Life Account under the Securities Act of 1933 and the Investment Company Act of 1940, and all amendments, consents and exhibits thereto; (b) to withdraw such statements or any amendments or exhibits and make requests for acceleration in connection therewith; (c) to take all other action of whatever kind or nature in connection with such registration statements which said attorneys may deem advisable; and (d) to make, file, execute, amend and withdraw documents of every kind, and to take other action of whatever kind they may elect, for the purpose of complying with the laws of any state relating to the sale of securities of the WRL Series Life Account, hereby ratifying and confirming all actions of any of said attorneys and agents hereunder. Said attorneys or agents may act jointly or severally, and the action of one shall bind the undersigned as fully as if two or more had acted together. /s/ JAMES R. WALKER ----------------------------- James R. Walker, Director ----------------------------- Date -----END PRIVACY-ENHANCED MESSAGE-----