-----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, TQQL6jAnstA0nGVSDUufGQQYftlaa1JJvZRx6Smo7opbiYgYuD65417v9K2oRgEw 1FZayDM9PqxIIzhwZnzBvQ== 0001016843-97-000110.txt : 19970228 0001016843-97-000110.hdr.sgml : 19970228 ACCESSION NUMBER: 0001016843-97-000110 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970227 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: WRL SERIES LIFE ACCOUNT CENTRAL INDEX KEY: 0000778209 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04420 FILM NUMBER: 97545913 BUSINESS ADDRESS: STREET 1: 201 HIGHLAND AVE CITY: LARGO STATE: FL ZIP: 34640 BUSINESS PHONE: 813-587-1800 MAIL ADDRESS: STREET 1: 201 HIGHLAND AVENUE CITY: LARGO STATE: FL ZIP: 34640 N-30D 1 --------------------------------------- ANNUAL REPORT DECEMBER 31, 1996 --------------------------------------- WRL SERIES LIFE ACCOUNT WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO February 1997 ACC00003 (2/97) - ------------------------------------------------------------------------------- T A B L E O F C O N T E N T S - -------------------------------------------------------------------------------
PAGE Report of Independent Accountants .......................................... 1 WRL SERIES LIFE ACCOUNT Statements of Assets, Liabilities and Equity Accounts ................... 2 Statements of Operations ................................................. 2 Statements of Changes in Equity Accounts ................................. 4 Selected Per Unit Data and Ratios ........................................ 6 Notes to Financial Statements ............................................ 9
WRL SERIES LIFE ACCOUNT - -------------------------------------------------------------------------------- REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Directors of Western Reserve Life Assurance Co. of Ohio and Policyholders of the WRL Series Life Account In our opinion, the accompanying statements of assets, liabilities and equity accounts and the related statements of operations and of changes in equity accounts and the selected per unit data and ratios present fairly, in all material respects, the financial position of each of the Sub-Accounts constituting the WRL Series Life Account (a separate account of Western Reserve Life Assurance Co. of Ohio, hereafter referred to as the "Life Account") at December 31, 1996, the results of each of their operations, the changes in each of their equity accounts and the selected per unit data and ratios for each of the periods indicated, in conformity with generally accepted accounting principles. These financial statements and selected per unit data and ratios (hereafter referred to as "financial statements") are the responsibility of the Life Account's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. PRICE WATERHOUSE LLP Kansas City, Missouri January 31, 1997 1 WRL SERIES LIFE ACCOUNT STATEMENTS OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS At December 31, 1996 - --------------------------------------------------------------------------------
MONEY MARKET BOND GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ASSETS: Investments Investment in WRL Series Fund, Inc.: Shares ....................... 12,430,543.580 1,081,304.989 9,980,909.027 ============== ============== ================ Cost ......................... $ 12,430,544 $ 11,856,263 $ 268,315,218 ============== ============== ================ Investments, at net asset value ................. $ 12,430,544 $ 11,577,785 $ 349,344,591 Accrued transfers from (to) depositor - net......... 309,485 6,763 146,685 -------------- -------------- ---------------- Total assets ................. 12,740,029 11,584,548 349,491,276 -------------- -------------- ---------------- LIABILITIES: .................... 0 0 0 -------------- -------------- ---------------- Total net assets ............. $ 12,740,029 $ 11,584,548 $ 349,491,276 ============== ============== ================ EQUITY ACCOUNTS: Policy Owners' equity: Units ........................ 824,579.964824 593,289.952352 7,208,481.980640 ============== ============== ================ Unit value ................... $ 15.450326 $ 19.525946 $ 48.483339 ============== ============== ================ Policy Owners' equity ........ $ 12,740,029 $ 11,584,548 $ 349,491,276 -------------- -------------- ---------------- Depositor's equity: Units ........................ N/A N/A N/A ============== ============== ================ Unit value ................... $ N/A $ N/A $ N/A ============== ============== ================ Depositor's equity ........... $ N/A $ N/A $ N/A -------------- -------------- ---------------- Total equity ................. $ 12,740,029 $ 11,584,548 $ 349,491,276 ============== ============== ================
(RESTUBBED TABLE CONTINUED FROM ABOVE)
SHORT-TO- INTERMEDIATE GOVERNMENT GLOBAL EQUITY-INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ASSETS: Investments Investment in WRL Series Fund, Inc.: Shares ........................... 166,836.195 4,589,097.306 3,994,063.092 ============== ================== ================== Cost ............................. $ 1,727,550 $ 74,042,621 $ 48,072,935 ============== ================== ================== Investments, at net asset value ..................... $ 1,709,208 $ 83,132,258 $ 55,805,919 Accrued transfers from (to) depositor - net ............ 629 26,825 93,808 -------------- ------------------ ------------------ Total assets ..................... 1,709,837 83,159,083 55,899,727 -------------- ------------------ ------------------ LIABILITIES: ........................ 0 0 0 -------------- ------------------ ------------------ Total net assets ................. $ 1,709,837 $ 83,159,083 $ 55,899,727 ============== ================== ================== EQUITY ACCOUNTS: Policy Owners' equity: Units ............................ 144,300.578938 5,497,026.869725 3,569,906.038362 ============== ================== ================== Unit value ....................... $ 11.849133 $ 15.128011 $ 15.658599 ============== ================== ================== Policy Owners' equity ............ $ 1,709,837 $ 83,159,083 $ 55,899,727 -------------- ------------------ ------------------ Depositor's equity: Units ............................ N/A N/A N/A ============== ================== ================== Unit value ....................... $ N/A $ N/A $ N/A ============== ================== ================== Depositor's equity ............... $ N/A $ N/A $ N/A -------------- ------------------ ------------------ Total equity ..................... $ 1,709,837 $ 83,159,083 $ 55,899,727 ============== ================== ==================
(RESTUBBED TABLE CONTINUED FROM ABOVE)
EMERGING AGGRESSIVE GROWTH GROWTH BALANCED UTILITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ASSETS: Investments Investment in WRL Series Fund, Inc.: Shares ................. 5,847,526.379 3,834,189.958 560,844.519 467,360.223 ================= ================= =============== =============== Cost ................... $ 85,429,168 $ 50,800,484 $ 5,826,446 $ 5,161,533 ================= ================= =============== =============== Investments, at net asset value ........... $ 107,952,036 $ 54,361,199 $ 6,390,648 $ 5,497,485 Accrued transfers from (to) depositor - net .. (26,863) 47,041 27,266 3,225 ----------------- ----------------- --------------- --------------- Total assets ........... 107,925,173 54,408,240 6,417,914 5,500,710 ----------------- ----------------- --------------- --------------- LIABILITIES: .............. 0 0 0 0 ----------------- ----------------- --------------- --------------- Total net assets ....... $ 107,925,173 $ 54,408,240 $ 6,417,914 $ 5,500,710 ================= ================= =============== =============== EQUITY ACCOUNTS: Policy Owners' equity: Units .................. 5,531,857.748031 3,702,244.184822 525,703.773282 422,239.257570 ================= ================= =============== =============== Unit value ............. $ 19.509752 $ 14.696016 $ 12.208232 $ 13.027472 ================= ================= =============== =============== Policy Owners' equity .. $ 107,925,173 $ 54,408,240 $ 6,417,914 $ 5,500,710 ----------------- ----------------- --------------- --------------- Depositor's equity: Units .................. N/A N/A N/A N/A ================= ================= =============== =============== Unit value ............. $ N/A $ N/A $ N/A $ N/A ================= ================= =============== =============== Depositor's equity ..... $ N/A $ N/A $ N/A $ N/A ----------------- ----------------- --------------- --------------- Total equity ........... $ 107,925,173 $ 54,408,240 $ 6,417,914 $ 5,500,710 ================= ================= =============== ===============
(RESTUBBED TABLE CONTINUED FROM ABOVE)
TACTICAL ASSET ALLOCATION C.A.S.E. GROWTH VALUE EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ASSETS: Investments Investment in WRL Series Fund, Inc.: Shares ............... 1,416,731.210 330,995.828 787,552.975 ================== ================== ================== Cost ................. $ 16,400,180 $ 4,219,207 $ 8,339,630 ================== ================== ================== Investments, at net asset value .......... $ 17,865,991 $ 4,440,951 $ 8,872,975 Accrued transfers from (to) depositor - net . 79,843 25,364 14,247 ------------------ ------------------ ------------------ Total assets .......... 17,945,834 4,466,315 8,887,222 ------------------ ------------------ ------------------ LIABILITIES: ............. 0 0 0 ------------------ ------------------ ------------------ Total net assets ...... $ 17,945,834 $ 4,466,315 $ 8,887,222 ================== ================== ================== EQUITY ACCOUNTS: Policy Owners' equity: Units ................. 1,329,562.261984 410,689.701539 769,884.882222 ================== ================== ================== Unit value ............ $ 13.497551 $ 10.809358 $ 11.251288 ================== ================== ================== Policy Owners' equity . $ 17,945,834 $ 4,439,292 $ 8,662,196 ------------------ ------------------ ------------------ Depositor's equity: Units ................. N/A 2,500.000000 20,000.000000 ================== ================== ================== Unit value ............ $ N/A $ 10.809358 $ 11.251288 ================== ================== ================== Depositor's equity .... $ N/A $ 27,023 $ 225,026 ------------------ ------------------ ------------------ Total equity .......... $ 17,945,834 $ 4,466,315 $ 8,887,222 ================== ================== ==================
2 WRL SERIES LIFE ACCOUNT STATEMENTS OF OPERATIONS For the year or period ended December 31, 1996 - -------------------------------------------------------------------------------
MONEY MARKET BOND GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT INVESTMENT INCOME: Dividend income .................... $ 599,024 $ 648,087 $ 3,365,272 Capital gain distributions ......... 0 0 18,714,436 ----------- ----------- ----------- 599,024 648,087 22,079,708 EXPENSES: Mortality and expense risk ......... 107,839 95,075 2,769,209 ----------- ----------- ----------- Net investment income (loss) .......................... 491,185 553,012 19,310,499 ----------- ----------- ----------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions .................. 0 (182,715) 5,591,331 Change in unrealized appreciation (depreciation) .................. 0 (431,243) 21,327,329 ----------- ----------- ----------- Net gain (loss) on investments .................... 0 (613,958) 26,918,660 ----------- ----------- ----------- Net increase (decrease) in equity accounts resulting from operations ..................... $ 491,185 $ (60,946) $46,229,159 =========== =========== ===========
(RESTUBBED TABLE CONTINUED FROM ABOVE)
SHORT-TO- INTERMEDIATE GOVERNMENT GLOBAL EQUITY-INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT INVESTMENT INCOME: Dividend income .................... $ 81,747 $ 847,718 $ 1,181,014 Capital gain distributions ......... 0 6,217,741 1,886,627 ----------- ----------- ----------- 81,747 7,065,459 3,067,641 EXPENSES: Mortality and expense risk ......... 13,774 541,245 421,973 ----------- ----------- ----------- Net investment income (loss) .......................... 67,973 6,524,214 2,645,668 ----------- ----------- ----------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions .................. 27,823 885,817 353,541 Change in unrealized appreciation (depreciation) .................. (56,871) 5,488,447 3,281,994 ----------- ----------- ----------- Net gain (loss) on investments .................... (29,048) 6,374,264 3,635,535 ----------- ----------- ----------- Net increase (decrease) in equity accounts resulting from operations ..................... $ 38,925 $12,898,478 $ 6,281,203 =========== =========== ===========
(RESTUBBED TABLE CONTINUED FROM ABOVE)
EMERGING AGGRESSIVE GROWTH GROWTH BALANCED UTILITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT INVESTMENT INCOME: Dividend income .................... $ 3,998 $ 614,817 $ 143,613 $ 139,429 Capital gain distributions ......... 4,733,022 918,863 54,644 141,611 ----------- ----------- ----------- ----------- 4,737,020 1,533,680 198,257 281,040 EXPENSES: Mortality and expense risk ......... 802,068 394,888 44,467 35,416 ----------- ----------- ----------- ----------- Net investment income (loss) .......................... 3,934,952 1,138,792 153,790 245,624 ----------- ----------- ----------- ----------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions .................. 1,314,430 2,253,657 89,518 119,018 Change in unrealized appreciation (depreciation) .................. 7,969,623 543,490 251,603 90,989 ----------- ----------- ----------- ----------- Net gain (loss) on investments .................... 9,284,053 2,797,147 341,121 210,007 ----------- ----------- ----------- ----------- Net increase (decrease) in equity accounts resulting from operations ..................... $13,219,005 $ 3,935,939 $ 494,911 $ 455,631 =========== =========== =========== ===========
(RESTUBBED TABLE CONTINUED FROM ABOVE)
TACTICAL ASSET ALLOCATION C.A.S.E. GROWTH VALUE EQUITY SUB-ACCOUNT SUB-ACCOUNT(a) SUB-ACCOUNT(a) INVESTMENT INCOME: Dividend income .................... $ 385,057 $ 14,793 $ 29,100 Capital gain distributions ......... 322,411 66,911 12,295 ----------- ----------- ----------- 707,468 81,704 41,395 EXPENSES: Mortality and expense risk ......... 123,426 11,458 22,671 ----------- ----------- ----------- Net investment income (loss) .......................... 584,042 70,246 18,724 ----------- ----------- ----------- Net realized and unrealized gain (loss) on investments: Net realized gain (loss) from securities transactions .................. 328,835 6,058 70,390 Change in unrealized appreciation (depreciation) .................. 850,092 221,745 533,344 ----------- ----------- ----------- Net gain (loss) on investments .................... 1,178,927 227,803 603,734 ----------- ----------- ----------- Net increase (decrease) in equity accounts resulting from operations ..................... $ 1,762,969 $ 298,049 $ 622,458 =========== =========== =========== (a) The inception date of this sub-account was May 1, 1996. The notes to the financial statements are an integral part of this report.
3 WRL SERIES LIFE ACCOUNT STATEMENTS OF CHANGES IN EQUITY ACCOUNTS For the year or period ended - --------------------------------------------------------------------------------
MONEY MARKET BOND SUB-ACCOUNT SUB-ACCOUNT DECEMBER 31 DECEMBER 31 ------------------------- --------------------------- 1996 1995 1996 1995 ----------- ----------- ------------- ----------- OPERATIONS: Net investment income (loss) ....... $ 491,185 $ 397,410 $ 553,012 $ 459,977 Net gain (loss) on investments ..... 0 0 (613,958) 1,080,157 ----------- ----------- ------------ ----------- Net increase (decrease) in equity accounts resulting from operations 491,185 397,410 (60,946) 1,540,134 ----------- ----------- ------------ ----------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed) 5,217,298 3,139,280 3,451,573 3,749,029 ----------- ----------- ------------ ----------- Less cost of units redeemed: Administrative charges ............ 2,639,279 1,356,484 1,314,254 916,494 Policy loans ...................... 285,757 219,767 191,268 197,829 Surrender benefits ................ 776,305 899,893 338,599 357,384 Death benefits .................... 25,737 7,670 28,090 10,202 ----------- ----------- ------------ ----------- 3,727,078 2,483,814 1,872,211 1,481,909 ----------- ----------- ------------ ----------- Increase (decrease) in equity accounts from capital unit transactions .................... 1,490,220 655,466 1,579,362 2,267,120 ----------- ----------- ------------ ----------- Net increase (decrease) in equity accounts ................. 1,981,405 1,052,876 1,518,416 3,807,254 Depositors' equity contribution (redemption) ..................... 0 0 0 0 EQUITY ACCOUNTS: Beginning of period ................ 10,758,624 9,705,748 10,066,132 6,258,878 ----------- ----------- ------------ ----------- End of period ...................... $12,740,029 $10,758,624 $ 11,584,548 $10,066,132 =========== =========== ============ ===========
(RESTUBBED TABLE CONTINUED FROM ABOVE)
GROWTH SUB-ACCOUNT DECEMBER 31 ----------------------------- 1996 1995 ------------ ------------ OPERATIONS: Net investment income (loss) ............... $ 19,310,499 $ 23,250,380 Net gain (loss) on investments ............. 26,918,660 54,801,782 ------------ ------------ Net increase (decrease) in equity accounts resulting from operations ....... 46,229,159 78,052,162 ------------ ------------ EQUITY TRANSACTIONS: Proceeds from units sold (redeemed) ........ 91,555,979 61,850,933 ------------ ------------ Less cost of units redeemed: Administrative charges .................... 29,331,415 23,714,204 Policy loans .............................. 8,442,970 5,518,596 Surrender benefits ........................ 12,385,662 8,982,170 Death benefits ............................ 600,920 711,078 ------------ ------------ 50,760,967 38,926,048 ------------ ------------ Increase (decrease) in equity accounts from capital unit transactions ............................ 40,795,012 22,924,885 ------------ ------------ Net increase (decrease) in equity accounts ......................... 87,024,171 100,977,047 Depositors' equity contribution (redemption) ............................. 0 0 EQUITY ACCOUNTS: Beginning of period ........................ 262,467,105 161,490,058 ------------ ------------ End of period .............................. $349,491,276 $262,467,105 ============ ============
SHORT-TO-INTERMEDIATE GOVERNMENT GLOBAL EQUITY-INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT DECEMBER 31 DECEMBER 31 DECEMBER 31 ------------------------ -------------------------- ------------------------- 1996 1995 1996 1995 1996 1995 ----------- ---------- ----------- ----------- ----------- ----------- OPERATIONS: Net investment income (loss) ....... $ 67,973 $ 62,086 $ 6,524,214 $ 1,187,745 $ 2,645,668 $ 1,756,089 Net gain (loss) on investments ..... (29,048) 68,387 6,374,264 4,626,003 3,635,535 4,992,475 ---------- ---------- ----------- ----------- ----------- ----------- Net increase (decrease) in equity accounts resulting from operations 38,925 130,473 12,898,478 5,813,748 6,281,203 6,748,564 ---------- ---------- ----------- ----------- ----------- ----------- QUITY TRANSACTIONS: Proceeds from units sold (redeemed) 442,872 679,242 43,696,555 15,012,786 16,832,424 14,236,727 ---------- ---------- ----------- ----------- ----------- ----------- Less cost of units redeemed: Administrative charges ............ 178,533 141,954 6,463,101 4,017,781 4,528,541 3,380,854 Policy loans ...................... 33,708 52,521 1,465,510 666,264 920,628 657,750 Surrender benefits ................ 77,704 41,967 2,225,874 721,584 1,300,527 918,863 Death benefits .................... 0 144 62,009 44,234 112,479 28,153 ---------- ---------- ----------- ----------- ----------- ----------- 289,945 236,586 10,216,494 5,449,863 6,862,175 4,985,620 ---------- ---------- ----------- ----------- ----------- ----------- Increase (decrease) in equity accounts from capital unit transactions .................... 152,927 442,656 33,480,061 9,562,923 9,970,249 9,251,107 ---------- ---------- ----------- ----------- ----------- ----------- Net increase (decrease) in equity accounts ................. 191,852 573,129 46,378,539 15,376,671 16,251,452 15,999,671 Depositors' equity contribution (redemption) ..................... 0 0 (268,153) 0 0 0 QUITY ACCOUNTS: Beginning of period ................ 1,517,985 944,856 37,048,697 21,672,026 39,648,275 23,648,604 ---------- ---------- ----------- ----------- ----------- ----------- End of period ...................... $1,709,837 $1,517,985 $83,159,083 $37,048,697 $55,899,727 $39,648,275 ========== ========== =========== =========== =========== ===========
4
EMERGING GROWTH AGGRESSIVE GROWTH SUB-ACCOUNT SUB-ACCOUNT DECEMBER 31 DECEMBER 31 -------------------------- ------------------------- 1996 1995 1996 1995 ------------ ----------- ----------- ----------- OPERATIONS: Net investment income (loss) ........... $ 3,934,952 $ 2,356,904 $ 1,138,792 $ 663,994 Net gain (loss) on investments ......... 9,284,053 16,180,870 2,797,147 4,424,350 ------------ ----------- ----------- ----------- Net increase (decrease) in equity accounts resulting from operations ... 13,219,005 18,537,774 3,935,939 5,088,344 ------------ ----------- ----------- ----------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed) .... 40,944,477 21,556,186 26,224,213 23,169,917 ------------ ----------- ----------- ----------- Less cost of units redeemed: Administrative charges ................ 9,201,102 5,846,452 6,412,799 2,568,298 Policy loans .......................... 2,095,860 1,387,434 863,340 627,821 Surrender benefits .................... 2,754,328 1,602,690 1,349,932 712,307 Death benefits ........................ 91,972 38,971 29,810 80,922 ------------ ----------- ----------- ----------- 14,143,262 8,875,547 8,655,881 3,989,348 ------------ ----------- ----------- ----------- Increase (decrease) in equity accounts from capital unit transactions ........................ 26,801,215 12,680,639 17,568,332 19,180,569 ------------ ----------- ----------- ----------- Net increase (decrease) in equity accounts ..................... 40,020,220 31,218,413 21,504,271 24,268,913 Depositors' equity contribution (redemption) ......................... 0 0 0 (274,290) EQUITY ACCOUNTS: Beginning of period .................... 67,904,953 36,686,540 32,903,969 8,909,346 ------------ ----------- ----------- ----------- End of period .......................... $107,925,173 $67,904,953 $54,408,240 $32,903,969 ============ =========== =========== ===========
(RESTUBBED TABLE CONTINUED FROM ABOVE)
BALANCED SUB-ACCOUNT DECEMBER 31 ------------------------ 1996 1995 ---------- ---------- OPERATIONS: Net investment income (loss) ...................... $ 153,790 $ 102,635 Net gain (loss) on investments .................... 341,121 401,549 ---------- ---------- Net increase (decrease) in equity accounts resulting from operations ............... 494,911 504,184 ---------- ---------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed) ............... 3,089,782 1,545,514 ---------- ---------- Less cost of units redeemed: Administrative charges ........................... 575,594 327,290 Policy loans ..................................... 77,586 29,025 Surrender benefits ............................... 84,857 27,726 Death benefits ................................... 3,961 14,811 ---------- ---------- 741,998 398,852 ---------- ---------- Increase (decrease) in equity accounts from capital unit transactions .................................... 2,347,784 1,146,662 ---------- ---------- Net increase (decrease) in equity accounts ................................. 2,842,695 1,650,846 Depositors' equity contribution (redemption) ..................................... (220,175) 0 EQUITY ACCOUNTS: Beginning of period ............................... 3,795,394 2,144,548 ---------- ---------- End of period ..................................... $6,417,914 $3,795,394 ========== ==========
C.A.S.E. VALUE UTILITY TACTICAL ASSET ALLOCATION GROWTH EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 31 -------------------------- --------------------------- ----------- ----------- 1996 1995 1996 1995(a) 1996(b) 1996(b) ---------- ---------- ----------- ------------ ----------- ----------- OPERATIONS: Net investment income (loss) ........ $ 245,624 $ 88,634 $ 584,042 $ 314,171 $ 70,246 $ 18,724 Net gain (loss) on investments ...... 210,007 336,528 1,178,927 733,874 227,803 603,734 ---------- ---------- ----------- ---------- ---------- ---------- Net increase (decrease) in equity accounts resulting from operations . 455,631 425,162 1,762,969 1,048,045 298,049 622,458 ---------- ---------- ----------- ---------- ---------- ---------- EQUITY TRANSACTIONS: Proceeds from units sold (redeemed) . 3,245,136 1,368,262 9,061,824 9,081,189 4,302,715 8,292,350 ---------- ---------- ----------- ---------- ---------- ---------- Less cost of units redeemed: Administrative charges ............. 439,973 221,419 1,134,737 434,848 140,145 152,948 Policy loans ....................... 72,641 26,862 306,304 145,685 7,028 36,190 Surrender benefits ................. 82,531 126,576 865,689 70,630 12,276 38,448 Death benefits ..................... 3,350 2,896 18,086 22,440 0 0 ---------- ---------- ----------- ---------- ---------- ---------- 598,495 377,753 2,324,816 673,603 159,449 227,586 ---------- ---------- ----------- ---------- ---------- ---------- Increase (decrease) in equity accounts from capital unit transactions ...................... 2,646,641 990,509 6,737,008 8,407,586 4,143,266 8,064,764 ---------- ---------- ----------- ---------- ---------- ---------- Net increase (decrease) in equity accounts ................... 3,102,272 1,415,671 8,499,977 9,455,631 4,441,315 8,687,222 Depositors' equity contribution (redemption) ....................... (232,644) 0 0 (9,774) 25,000 200,000 EQUITY ACCOUNTS: Beginning of period ................. 2,631,082 1,215,411 9,445,857 0 0 0 ---------- ---------- ----------- ---------- ---------- ---------- End of period ....................... $5,500,710 $2,631,082 $17,945,834 $9,445,857 $4,466,315 $8,887,222 ========== ========== =========== ========== ========== ========== (a) The inception date of this sub-account was January 3, 1995. (b) The inception date of this sub-account was May 1, 1996.
The notes to the financial statements are an integral part of this report. 5 WRL SERIES LIFE ACCOUNT SELECTED PER UNIT DATA AND RATIOS* For the period ended - --------------------------------------------------------------------------------
MONEY MARKET SUB-ACCOUNT DECEMBER 31 ------------------------------------------------ 1996 1995 1994 1993 1992 -------- ------- ------ ------ ------ Accumulation unit value, beginning of period .......................... $ 14.83 $ 14.19 $13.84 $13.63 $13.33 Income from operations: Net investment income (loss) ....... 0.62 0.64 0.35 0.21 0.30 Net realized and unrealized gain (loss) on investments ........... 0.00 0.00 0.00 0.00 0.00 ------- ------- ------ ------ ------ Total income (loss) from operations ..................... 0.62 0.64 0.35 0.21 0.30 ------- ------- ------ ------ ------ Accumulation unit value, end of period ...................... $ 15.45 $ 14.83 $14.19 $13.84 $13.63 ======= ======= ====== ====== ====== Total return (a) ..................... 4.17% 4.49% 2.58% 1.52% 2.24% Ratios and supplemental data: Net assets at end of period (in thousands) ................... $12,740 $10,759 $9,706 $4,985 $4,619 Ratio of net investment income (loss) to average net assets (b) ......... 4.07% 4.37% 2.66% 1.51% 2.12%
(RESTUBBED TABLE CONTINUED FROM ABOVE)
BOND SUB-ACCOUNT DECEMBER 31 ----------------------------------------------------- 1996 1995 1994 1993 1992 -------- -------- ------ ------ ------ Accumulation unit value, beginning of period .......................... $ 19.67 $ 16.14 $17.50 $15.57 $14.68 Income from operations: Net investment income (loss) ....... 0.99 1.05 0.89 2.11 1.00 Net realized and unrealized gain (loss) on investments ............ (1.13) 2.48 (2.25) (0.18) (0.11) -------- -------- ------ ------ ------ Total income (loss) from operations ..................... (0.14) 3.53 (1.36) 1.93 0.89 -------- -------- ------ ------ ------ Accumulation unit value, end of period ...................... $ 19.53 $ 19.67 $16.14 $17.50 $15.57 ======== ======== ====== ====== ====== Total return (a) ..................... (0.75%) 21.89% (7.77%) 12.40% 6.08% Ratios and supplemental data: Net assets at end of period (in thousands) .................... $ 11,585 $ 10,066 $6,259 $6,985 $4,558 Ratio of net investment income (loss) to average net assets (b) ......... 5.34% 5.80% 5.57% 12.92% 6.69%
GROWTH SUB-ACCOUNT DECEMBER 31 --------------------------------------------------------- 1996 1995 1994 1993 1992 -------- -------- -------- -------- -------- Accumulation unit value, beginning of period ......................... $ 41.47 $ 28.44 $ 31.30 $ 30.37 $ 29.95 Income from operations: Net investment income (loss) ...... 2.88 3.89 0.04 0.46 1.09 Net realized and unrealized gain (loss) on investments ........... 4.13 9.14 (2.90) 0.47 (0.67) -------- -------- -------- -------- -------- Total income (loss) from operations .................... 7.01 13.03 (2.86) 0.93 0.42 -------- -------- -------- -------- -------- Accumulation unit value, end of period ..................... $ 48.48 $ 41.47 $ 28.44 $ 31.30 $ 30.37 ======== ======== ======== ======== ======== Total return (a) .................... 16.91% 45.81% (9.13%) 3.06% 1.41% Ratios and supplemental data: Net assets at end of period (in thousands) ................... $349,491 $262,467 $161,490 $169,757 $146,053 Ratio of net investment income (loss) to average bet assets (b) ........ 6.41% 11.05% 0.16% 1.56% 3.84%
SHORT-TO-INTERMEDIATE GOVERNMENT SUB-ACCOUNT DECEMBER 31 ------------------------------------------------- 1996 1995 1994 1993 1992(C) ------ ------ ------ ------ ------- Accumulation unit value, beginning of period ......................... $11.55 $10.27 $10.40 $10.04 $10.00 Income from operations: Net investment income (loss) ...... 0.51 0.61 0.40 0.14 0.01 Net realized and unrealized gain (loss) on investments ........... (0.21) 0.67 (0.53) 0.22 0.03 ------ ------ ------ ------ ------ Total income (loss) from operations .................... 0.30 1.28 (0.13) 0.36 0.04 ------ ------ ------ ------ ------ Accumulation unit value, end of period ..................... $11.85 $11.55 $10.27 $10.40 $10.04 ====== ====== ====== ====== ====== Total return (a) .................... 2.56% 12.53% (1.32%) 3.64% 0.38% Ratios and supplemental data: Net assets at end of period (in thousands) ................... $1,710 $1,517 $ 945 $1,408 $ 803 Ratio of net investment income (loss) to average bet assets (b) ........ 4.53% 5.53% 4.06% 1.39% 1.92%
GLOBAL EQUITY-INCOME SUB-ACCOUNT SUB-ACCOUNT DECEMBER 31 DECEMBER 31 -------------------------------- ----------------------------------------- 1996 1995 1994(E) 1996 1995 1994 1993(D) ------- ------- -------- ------- ------- ------- ------- Accumulation unit value, beginning of period ................................. $ 11.95 $ 9.80 $ 10.00 $ 13.74 $ 11.12 $ 11.28 $ 10.00 Income from operations: Net investment income (loss) .............. 1.50 0.45 0.71 0.82 0.68 0.18 0.19 Net realized and unrealized gain (loss) on investments ..................... 1.68 1.70 (0.91) 1.10 1.94 (0.34) 1.09 ------- ------- ------- ------- ------- ------- ------- Total income (loss) from operations ................................ 3.18 2.15 (0.20) 1.92 2.62 (0.16) 1.28 ------- ------- ------- ------- ------- ------- ------- Accumulation unit value, end of period ............................. $ 15.13 $ 11.95 $ 9.80 $ 15.66 $ 13.74 $ 11.12 $ 11.28 ======= ======= ======= ======= ======= ======= ======= Total return (a) .......................... 26.60% 21.96% (2.02%) 13.97% 23.55% (1.42%) 12.81% Ratios and supplemental data: Net assets at end of period (in thousands) ............................ $83,159 $37,049 $21,672 $55,900 $39,648 $23,649 $13,343 Ratio of net investment income (loss) to average net assets (b) ................. 11.09% 4.25% 8.86% 5.76% 5.47% 1.93% 2.27%
6
EMERGING GROWTH SUB-ACCOUNT DECEMBER 31 ------------------------------------------ 1996 1995 1994 1993(D) -------- ------- ------- ------- Accumulation unit value, beginning of period ......................... $ 16.56 $ 11.38 $ 12.40 $ 10.00 Income from operations: Net investment income (loss) ...... 0.82 0.65 (0.09) (0.09) Net realized and unrealized gain (loss) on investments ........... 2.13 4.53 (0.93) 2.49 -------- ------- ------- ------- Total income (loss) from operations .................... 2.95 5.18 (1.02) 2.40 -------- ------- ------- ------- Accumulation unit value, end of period ..................... $ 19.51 $ 16.56 $ 11.38 $ 12.40 ======== ======= ======= ======= Total return (a) .................... 17.82% 45.49% (8.18%) 23.96% Ratios and supplemental data: Net assets at end of period (in thousands) ................... $107,925 $67,905 $36,687 $18,620 Ratio of net investment income (loss) to average net assets (b) ........ 4.51% 4.66% (0.86%) (0.92%)
AGGRESSIVE GROWTH BALANCED SUB-ACCOUNT SUB-ACCOUNT DECEMBER 31 DECEMBER 31 ----------------------------- --------------------------- 1996 1995 1994(E) 1996 1995 1994(E) ------- ------- ------- ------ ------ ------- Accumulation unit value, beginning of period ......................... $ 13.43 $ 9.82 $10.00 $11.13 $ 9.37 $10.00 Income from operations: Net investment income (loss) ...... 0.36 0.37 (0.06) 0.36 0.37 0.22 Net realized and unrealized gain (loss) on investments ........... 0.91 3.24 (0.12) 0.72 1.39 (0.85) ------- ------- ------ ------ ------ ------ Total income (loss) from operations .................... 1.27 3.61 (0.18) 1.08 1.76 (0.63) ------- ------- ------ ------ ------ ------ Accumulation unit value, end of period ..................... $ 14.70 $ 13.43 $ 9.82 $12.21 $11.13 $ 9.37 ======= ======= ====== ====== ====== ====== Total return (a) .................... 9.46% 36.79% (1.85%) 9.73% 18.73% (6.29%) Ratios and supplemental data: Net assets at end of period (in thousands) ................... $54,408 $32,904 $8,909 $6,418 $3,795 $2,145 Ratio of net investment income (loss) to average net assets (b) ........ 2.65% 2.93% (0.72%) 3.18% 3.59% 3.06% - ------------ * The above table illustrates the change for a unit outstanding computed using average units outstanding throughout each period. See Notes to Selected Per Unit Data and Ratios on page 8.
The notes to the financial statements are an integral part of this report. 7 WRL SERIES LIFE ACCOUNT SELECTED PER UNIT DATA AND RATIOS* For the period ended
TACTICAL ASSET UTILITY ALLOCATION SUB-ACCOUNT SUB-ACCOUNT DECEMBER 31 DECEMBER 31 --------------------------- ------------------ 1996 1995 1994(E) 1996 1995(F) ------ ------ ------- ------- ------- Accumulation unit value, beginning of period ......................... $11.77 $ 9.49 $10.00 $ 11.90 $10.00 Income from operations: Net investment income (loss) ... 0.76 0.49 0.29 0.53 0.61 Net realized and unrealized gain (loss) on investments .......... 0.50 1.79 (0.80) 1.07 1.29 ------ ------ ------ ------- ------ Total income (loss) from operations .................... 1.26 2.28 (0.51) 1.60 1.90 ------ ------ ------ ------- ------ Accumulation unit value, end of period ..................... $13.03 $11.77 $ 9.49 $ 13.50 $11.90 ====== ====== ====== ======= ====== Total return (a) .................... 10.64% 24.14% (5.15%) 13.40% 19.03% Ratios and supplemental data: Net assets at end of period (in thousands) ................. $5,501 $2,631 $1,215 $17,946 $9,446 Ratio of net investment income (loss) to average net assets (b) ........ 6.38% 4.57% 3.71% 4.35% 5.47%
(RESTUBBED TABLE CONTINUED FROM ABOVE)
C.A.S.E. GROWTH VALUE EQUITY SUB-ACCOUNT SUB-ACCOUNT DECEMBER 31 DECEMBER 31 ----------- ------------ 1996(G) 1996(G) ----------- ------------ Accumulation unit value, beginning of period ............................ $10.00 $10.00 Income from operations: Net investment income (loss) ...... 0.37 0.05 Net realized and unrealized gain (loss) on investments .............. 0.44 1.20 ------ ------ Total income (loss) from operations ....................... 0.81 1.25 ------ ------ Accumulation unit value, end of period ....................... $10.81 $11.25 ====== ====== Total return (a) ....................... 8.09% 12.51% Ratios and supplemental data: Net assets at end of period (in thousands) ..................... $4,466 $8,887 Ratio of net investment income (loss) to average net assets (b) ........... 6.11% 0.77%
* The above table illustrates the change for a unit outstanding computed using average units outstanding throughout each period. See Notes to Selected Per Unit Data and Ratios below. NOTES TO SELECTED PER UNIT DATA AND RATIOS - ------------------------------------------ (a) For periods less than one year the total return is not annualized. (b) For periods less than one year the ratio of net investment income to average net assets is annualized. (c) The inception date of this sub-account was December 3, 1992. (d) The inception date of this sub-account was March 1, 1993. (e) The inception date of this sub-account was March 1, 1994. (f) The inception date of this sub-account was January 3, 1995. (g) The inception date of this sub-account was May 1, 1996. The notes to the financial statements are an integral part of this report. 8 WRL SERIES LIFE ACCOUNT NOTES TO THE FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- DECEMBER 31, 1996 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES WRL Series Life Account (the "Life Account") was established as a variable life insurance separate account of Western Reserve Life Assurance Co. of Ohio ("WRL") and is registered as a unit investment trust ("Trust") under the Investment Company Act of 1940, as amended. The Life Account contains 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 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 Capital Management Corporation Emerging Growth Van Kampen American Capital Asset Management, Inc. Aggressive Growth Fred Alger Management, Inc. Balanced AEGON Management Utility Federated Investment Counseling Tactical Asset Allocation Dean Investment Associates C.A.S.E. Growth C.A.S.E. Management, Inc. Value Equity NWQ Investment Management Company, Inc. WRL and AEGON Management are indirect 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. The amount of the contribution and units received from the corresponding sub-accounts 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 financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following significant accounting policies, which are in conformity with generally accepted accounting principles for unit investment trusts, have been consistently used in preparation of the Trust's financial statements. A. VALUATION OF INVESTMENTS The investments in the Fund's shares are stated at the closing net asset value ("NAV") per share as determined by the Fund on December 31, 1996. Investment transactions are accounted for on the trade date, using the Fund NAV next determined after receipt of sale or redemption orders 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. 9 WRL SERIES LIFE ACCOUNT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) - -------------------------------------------------------------------------------- NOTE 2 - CHARGES AND DEDUCTIONS Charges are assessed by WRL in connection with issuance and administration of the Policies. A. POLICY CHARGES Under some forms of the Policies, sales and other administrative charges are deducted by WRL prior to allocation of policyowner payments to the sub-accounts. Thereafter, monthly administrative charges are deducted from the sub-accounts, some of which continue only during the first policy year. Contingent surrender charges may also apply. Under the other forms of the Policies, such "front-end" and other administrative charges are 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 typically declared and reinvested semi-annually, while capital gain distributions are typically declared and reinvested annually. Dividends and distributions of the Fund are generally paid to and reinvested by the Life Account the next business day after declaration. NOTE 4 - OTHER MATTERS As of December 31, 1996 the equity accounts include net unrealized appreciation (depreciation) on investments as follows: SUB-ACCOUNT - ----------- Money Market $ N/A Bond (278,478) Growth 81,029,373 Short-to-Intermediate Government (18,342) Global 9,089,637 Equity-Income 7,732,984 Emerging Growth 22,522,868 Aggressive Growth 3,560,715 Balanced 564,202 Utility 335,952 Tactical Asset Allocation 1,465,811 C.A.S.E Growth 221,744 Value Equity 533,345 10 THIS PAGE INTENTIONALLY LEFT BLANK. 11 THIS PAGE INTENTIONALLY LEFT BLANK. 12 - -------------------------------------------------------------------------------- W R L S E R I E S L I F E A C C O U N T - -------------------------------------------------------------------------------- OFFICE OF THE WRL SERIES LIFE ACCOUNT 201 Highland Avenue Largo, FL 33770-2597 1-800-851-9777 ---------------------- DISTRIBUTOR: InterSecurities, Inc. 201 Highland Avenue Largo, FL 33770-2597 ---------------------- INSURER: Western Reserve Life Assurance Co. of Ohio 201 Highland Avenue Largo, FL 33770-2597 ---------------------- INDEPENDENT ACCOUNTANTS: Price Waterhouse LLP 1055 Broadway Kansas City, MO 64105 THIS MATERIAL IS FOR POLICYHOLDER'S REPORTING PURPOSES ONLY AND SHALL NOT BE USED IN CONNECTION WITH A SOLICITATION, OFFER OR ANY PROPOSED SALE OR PURCHASE OF SECURITIES. THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS. A HISTORY OF PERFORMANCE /Registered Trademark/ [LOGO] ---------- WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO DISTRIBUTOR: INTERSECURITIES, INC. 201 HIGHLAND AVENUE LARGO, FLORIDA 33770-2597 February 1997 ACC00003 (2/97) -----END PRIVACY-ENHANCED MESSAGE-----