UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-01356

THE PAUL REVERE VARIABLE ANNUITY

CONTRACT ACCUMULATION FUND

(Exact name of Registrant as specified in charter)

18 Chestnut Street

Worcester, MA 10608

(Address of principal executive offices)

CT Corporation System

101 Federal Street

Boston, MA 02110

(Name and address of agent for service)

Registrant’s telephone number, including area code: (508) 792-6358

Date of fiscal year end: December 31

Date of reporting period: January 31, 2006 - December 31, 2006

Item 1. Report to Stockholders.

Annual Report

December 31, 2006

Board of Managers of

The Accumulation Fund:

Donald E. Boggs, Chairman

Gordon T. Miller, Vice Chairman

David G. Fussell

Joan Sadowsky

H. C. Goodwin

THE PAUL REVERE VARIABLE ANNUITY

CONTRACT ACCUMULATION FUND

A Separate Account of The Paul Revere

Variable Annuity Insurance Company

This report and the financial statements attached are submitted for the general information of contractowners and are not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing herein contained is to be considered an offer of sale of The Paul Revere Variable Annuity Insurance Company contracts. Such offering is made only by prospectus, which includes details as to offering price and other material information.

TO OUR CONTRACTOWNERS AND PARTICIPANTS:

THE PAUL REVERE VARIABLE ANNUITY

CONTRACT ACCUMULATION FUND

VARIABLE ANNUITY CONTRACTS

What a difference a year can make. By the end of 2005, the Dow Jones Industrial Average had lost value over the course of the year, as stocks were beaten back by a myriad of investor worries, including a spike in oil prices, a rise in interest rates, and political uncertainty in the Middle East. Fast forward to 2006, and we have seen a dramatically different picture. While there were some fluctuations in the global markets in the first half of the year, the second half of 2006 was good to many investors. Oil prices retreated, boosting consumer confidence, and interest rates have held steady. As 2006 drew to a close, global growth remained strong and seemed poised to fill in any gaps left by a slowing in the U.S. economy.

In the United States through the latter part of the year, the U.S. Federal Reserve Board entered a period of monetary policy stability in its attempt to keep inflation and growth in balance. Consumer inflation was tame, and the economy was far from falling into recession. Corporate profit growth slowed slightly in the fourth quarter but remained strong. That strength was reflected in the series of new record highs hit by U.S. stock markets. The Dow Jones Industrial Average closed above 12,500 for the first time in history and closed the year 19% higher. The Standard & Poor’s 500 Stock Index returned 16%, and the NASDAQ Composite Index was up 10%.

Against this backdrop for 2006, the portfolio underperformed the Russell 1000 Growth in 2006. The three biggest detractors to relative performance were stock selection and overweights to technology and retailing. Selection in financial services and leisure also negatively impacted performance. Conversely, the three biggest contributors to relative performance were stock selection in special products & services and energy. Underweighting transportation also helped relative performance.

Consistent with the portfolio’s investment approach, we remain overweight in areas where we see sustainable growth companies with stocks selling at reasonable prices. Key overweights at the end of the year were in special products & services (business services), leisure (gaming & lodging), and energy (oil service). Top underweights were in technology (computer systems) and retailing (specialty stores).

Thank you for your continued support.

Sincerely,

/s/ Donald E. Boggs

Donald E. Boggs

Chairman, Board of Managers

The Paul Revere Variable Annuity

Contract Accumulation Fund

The opinions expressed in this annual report are those of the MFS Investment Team. These views are subject to change at any time based on market and other conditions, and no forecast can be guaranteed.

Past performance is no guarantee of future results.

Additional Information.

REMUNERATION OF THE BOARD OF MANAGERS

Unum Group paid all expenses relative to the operation of the Fund including Board of Managers’ fees. Accordingly, no member of the Board of Managers receives any remuneration from the Fund. The total aggregate remuneration paid to all members of the Board of Managers for the fiscal year ended December 31, 2006, was $7,200.00. This amount represents consideration paid for attendance at meetings of the Board of Managers. Those members of the Board of Managers deemed to be interested persons received direct remuneration or an indirect benefit as officers of PRV. None of the members of the Board of Managers, or officers of the Fund, who are also officers or employees of PRV or its affiliates, received any remuneration from the Fund.

Information concerning the nominees for re-election, as well as members of the Board of Managers whose terms will continue, follows with the same abbreviations of company names as used previously. Unless the contractowner withholds authorization on the Proxy, it is intended that the interest represented by the Proxy will be voted in favor of the election of the nominees.

None of the members of the Board of Managers who are not “interested persons” of the Fund within the meaning of section 2(a)(19) of the Investment Company Act of 1940 owns beneficially or of record securities of PRV or any of its affiliates.

PROXY VOTING POLICIES

A description of the Fund’s proxy voting policy and procedures is available without charge, upon written request, from the Secretary of the Board of Managers. Please send a written request to the Secretary of the Board of Managers, c/o Unum Group at 1 Fountain Square, Chattanooga, Tennessee 37402. You may also view a description of the Fund’s proxy voting policy and procedures on the SEC’s (Securities and Exchange Commission) website, www.sec.gov.

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended is available via the methods noted above.

QUARTERLY FILING REQUIREMENTS

In November 2004, the Fund began filing its complete schedule of investments with the Securities and Exchange Commission for the first and third quarter of each fiscal year on Form N-Q, which when filed, is available without charge, upon written request, from the Secretary of the Board of Managers. Please send a written request to the Secretary of the Board of Managers, c/o Unum Group at 1 Fountain Square, Chattanooga, Tennessee 37402. You may also view its complete schedule of investments on Form N-Q on the SEC’s (Securities and Exchange Commission) website, www.sec.gov.

STATEMENT OF ADDITIONAL INFORMATION

The Statement of Additional Information (SAI) includes additional information about members of the board of managers of the Registrant, and is available, without charge, upon request, toll-free at (800) 718-8824 for contractowners who call to request the SAI.

INFORMATION CONCERNING MEMBERS OF THE BOARD OF MANAGERS

(1)	(2)	(3)	(4)	(5)	(6)
Name, Address, and Age	Position(s) Held with Fund	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Director or Nominee for Director	Other Directorships Held by Director or Nominee For Director
H. C. Goodwin (72) 24 Waters Road Sutton, MA 01590	Member, Board of Managers	2004-2007 5 years of service	President of Manufacturers Service Center, Inc.	2	None
Gordon T. Miller (84) 14 Eastwood Road Shrewsbury, MA 01545	Vice Chairman, Board of Managers	2004-2007 38 years of service	Retired; Former Vice President and Director of Industrial Relations of Barry Wright Corporation, Newton Lower Falls, MA. (antivibration products)	2	None
Joan Sadowsky (77) 770 Salisbury Street Apt. 576 Worcester, MA 01609	Member, Board of Managers	2007-2010 21 years of service	Retired; Former Vice President of Human Resources, Atlas Distributing Corporation, Auburn, MA (beverage distribution)	2	None

The members of the Board of Managers listed below are “interested persons” of the Fund within the meaning of section 2(a)(19) of the Investment Company Act of 1940.

INFORMATION CONCERNING MEMBERS OF THE BOARD OF MANAGERS

(CONTINUED)

(1)	(2)	(3)	(4)	(5)	(6)
Name, Address, and Age	Position(s) Held with Fund	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Director or Nominee for Director	Other Directorships Held by Director or Nominee For Director
Donald E. Boggs* (61) 1 Fountain Square Chattanooga, TN 37402	Chairman Board of Managers	2004-2007 9 years of service	Retired, Senior Vice President of Unum Group, Chattanooga, Tennessee	2	None
David G. Fussell* (59) 1 Fountain Square Chattanooga, TN 37402	Member, Board of Managers	2007-2010 5 years of service	Senior Vice President of Unum Group, Chattanooga, Tennessee	2	None

* Officers of PRV, (the investment advisor and sponsoring insurance company) and other subsidiaries within the Unum Group holding company system.

None of the members of the Board of Managers who are not “interested persons” of the Fund within the meaning of section 2(a)(19) of the Investment Company Act of 1940 owns beneficially or of record securities of PRV or any of its affiliates.

AUDITED FINANCIAL STATEMENTS

The Paul Revere Variable Annuity Contract Accumulation Fund

Years Ended December 31, 2006 and 2005

The Paul Revere Variable Annuity Contract Accumulation Fund

Audited Financial Statements

December 31, 2006

Report of Independent Registered Public Accounting Firm	1
Statement of Assets and Liabilities	2
Statement of Operations	3
Statements of Changes in Net Assets	4
Schedule of Investments	5
Financial Highlights	8
Notes to Financial Statements	9

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Owners and the Board of Managers of The Paul

Revere Variable Annuity Contract Accumulation Fund

of The Paul Revere Variable Annuity Insurance Company

We have audited the accompanying statements of assets and liabilities of The Paul Revere Variable Annuity Contract Accumulation Fund (comprising the Qualified and Non-Qualified Portfolios) (“Fund”) as of December 31, 2006, including the schedule of investments as of December 31, 2006, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2006, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of The Paul Revere Variable Annuity Contract Accumulation Fund (comprising the Qualified and Non-Qualified Portfolios) at December 31, 2006, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Chattanooga, Tennessee

February 21, 2007

1

Statement of Assets and Liabilities

	December 31, 2006
	Series Q (Qualified)		Series N (Non-Qualified)
ASSETS
Investments in securities at market value
(Cost: Series Q - $ 8,445,414)
(Cost: Series N - $ 1,358,703)
(see Schedule of Investments)	$	9,263,762	$	1,489,762
Cash		409		49,932
Dividends and Interest receivable		8,825		1,492
Receivable for investments sold		231,000		—
Total assets		9,503,996		1,541,186
LIABILITIES
Payable for investments purchased		230,967		—
Payable to The Paul Revere Variable Annuity Insurance Company		29,733		5,316
Total liabilities		260,700		5,316
TOTAL NET ASSETS	$	9,243,296	$	1,535,870
CONTRACT OWNERS’ EQUITY
Deferred contracts	$	7,543,088	$	758,700
Currently payable contracts		1,700,208		777,170
Total net assets	$	9,243,296	$	1,535,870
ACCUMULATION UNITS OUTSTANDING		710,397		122,558
NET ASSET VALUE PER ACCUMULATION UNIT	$	13.011	$	12.532

See accompanying notes to financial statements.

2

Statement of Operations

	Year Ended December 31, 2006 Series Q (Qualified)
INVESTMENT LOSS
Income:
Dividends	$	88,477
Interest		10,552
Total income		99,029
Expenses:
Mortality and expense risk fees		91,547
Investment management and advisory service fees		45,723
Professional services		12,600
Total expenses		149,870
Net investment loss		(50,841	)
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments sold		262,609
Net increase in unrealized appreciation of investments		243,981
Net realized and unrealized gain on investments		506,590
Increase in net assets from operations	$	455,749
	Year Ended December 31, 2006 Series N (Non-Qualified)
INVESTMENT LOSS
Income:
Dividends	$	14,554
Expenses:
Mortality and expense risk fees		15,032
Investment management and advisory service fees		7,486
Professional services		7,560
Total expenses		30,078
Net investment loss		(15,524	)
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments sold		49,257
Net increase in unrealized appreciation of investments		32,334
Net realized and unrealized gain on investments		81,591
Increase in net assets from operations	$	66,067

See accompanying notes to financial statements.

3

Statements of Changes in Net Assets

	For the years ended December 31
	2006 Series Q (Qualified)			2005 Series Q (Qualified)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment loss	$	(50,841	)	$	(72,553	)
Net realized gain on investments		262,609			544,103
Net increase (decrease) in unrealized appreciation of investments		243,981			(344,677	)
Increase in net assets from operations		455,749			126,873
Payments to contract owners:
Annuity payments to contract owners		240,355			245,149
Terminations and withdrawals to contract owners		476,500			107,267
Total payments to contract owners		716,855			352,416
Total decrease in net assets		(261,106	)		(225,543	)
NET ASSETS
Beginning of period		9,504,402			9,729,945
End of period	$	9,243,296		$	9,504,402
	For the years ended December 31
	2006 Series N (Non-Qualified)			2005 Series N (Non-Qualified)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment loss	$	(15,524	)	$	(17,411	)
Net realized gain on investments		49,257			99,697
Net increase (decrease) in unrealized appreciation of investments		32,334			(56,338	)
Increase in net assets from operations		66,067			25,948
Contract receipts:
Gross purchase payments received		—			279
Deductions from purchase payments		—			8
Net purchase payments received		—			271
Payments to contract owners:
Annuity payments to contract owners		52,380			53,459
Terminations and withdrawals to contract owners		6,929			40,559
Total payments to contract owners		59,309			94,018
Net contract payments to contract owners		(59,309	)		(93,747	)
Total increase (decrease) in net assets		6,758			(67,799	)
NET ASSETS
Beginning of period		1,529,112			1,596,911
End of period	$	1,535,870		$	1,529,112

See accompanying notes to financial statements.

4

Schedule of Investments

December 31, 2006

	Number of Shares	Series Q (Qualified)				% of Net Assets		Number of Shares	Series N (Non-Qualified)				% of Net Assets
		Cost		Market Value					Cost		Market Value
Securities of Unaffiliated Companies
Common Stocks
Aerospace & Military Technology
Boeing Company	1,400	$	112,848	$	124,376			290	$	17,616	$	19,545
United Technologies Corporation	2,370		125,404		148,172			390		20,478		24,383
			238,252		272,548	2.95	%			38,094		43,928	2.86	%
Agriculture
Monsanto Company	2,200		94,567		115,566	1.25	%	300		12,982		15,759	1.03	%
Beverages
PepsiCo, Inc.	2,060		107,394		128,853	1.39	%	350		18,346		21,893	1.43	%
Broadcasting & Media
News Corporation	4,400		87,821		94,512	1.02	%	700		13,971		15,036	0.98	%
Computer – Systems & Services
Adobe Systems, Inc.*	4,600		172,574		189,152			760		28,762		31,251
Apple Computer, Inc.*	1,430		98,372		121,321			240		15,988		20,362
Automatic Data Processing, Inc.	1,500		68,859		73,875			200		9,238		9,850
CheckFree Corporation*	1,100		47,890		44,176			180		7,814		7,229
Dell, Inc.*	1,800		45,270		45,162			260		6,529		6,523
eBay, Inc. *	2,300		76,546		69,161			400		13,241		12,028
Electronic Arts, Inc. *	2,790		152,503		140,504			500		27,278		25,180
EMC Corporation *	4,710		65,074		62,172			770		10,637		10,164
First Data Corporation	6,390		161,566		163,073			1,060		26,727		27,051
Google, Inc., Class A *	375		151,685		172,680			60		25,239		27,629
Hewlett Packard Company	3,190		107,311		131,396			550		18,502		22,655
International Game Technology	3,380		124,581		156,156			570		21,041		26,334
Microsoft Corporation	6,120		158,901		182,743			1,000		26,200		29,860
Oracle Corporation *	9,900		137,186		169,686			1,610		22,171		27,595
SanDisk Corporation*	580		25,938		24,957			100		4,472		4,303
Seagate Technology	900		22,844		23,850			150		3,807		3,975
Yahoo!, Inc. *	2,540		84,345		64,872			410		13,622		10,471
			1,701,445		1,834,936	19.85	%			281,268		302,460	19.69	%
Conglomerate
Danaher Corporation	620		40,966		44,913			110		7,271		7,968
General Electric Company	7,730		271,577		287,633			1,300		45,567		48,373
			312,543		332,546	3.60	%			52,838		56,341	3.67	%
Consumer Goods & Services
Altria Group, Inc.	800		62,811		68,656			150		11,809		12,873
Colgate-Palmolive Company	670		37,962		43,711			110		6,233		7,176
Ecolab, Inc	970		37,097		43,844			160		6,118		7,232
NIKE, Inc.	1,100		94,260		108,933			180		15,384		17,825
Procter & Gamble Company	4,380		250,967		281,503			680		38,876		43,704
			483,097		546,647	5.91	%			78,420		88,810	5.78	%
Electronics
Harman International	790		81,289		78,929	0.85	%	130		13,397		12,988	0.85	%
Energy Services
Exxon Mobil Corporation	800		52,633		61,304			125		8,224		9,579
GlobalSantaFe Corporation	2,110		83,787		124,026			350		13,736		20,573
Noble Corporation	940		67,165		71,581			160		11,742		12,184
Schulumberger, Ltd.	800		49,422		50,528			130		8,031		8,211
Transocean, Inc.*	290		24,314		23,458			50		4,192		4,045
Weatherford International, Ltd.*	2,160		93,691		90,266			360		15,621		15,044
Praxair, Inc.	800		49,991		47,464			130		8,119		7,713
			421,003		468,627	5.07	%			69,665		77,349	5.04	%

See accompanying notes to financial statements.

5

Schedule of Investments (continued)

December 31, 2006

	Number Of Shares	Series Q (Qualified)				% of Net Assets		Number Of Shares	Series N (Non-Qualified)				% of Net Assets
		Cost		Market Value					Cost		Market Value
Common Stocks-Continued
Financial Institutions
American Express Company	2,860	$	140,815	$	173,516			480	$	23,706	$	29,122
Charles Schwab Corporation	5,300		89,487		102,502			850		14,340		16,439
Chicago Mercantile Exchange	280		131,093		142,730			40		18,751		20,390
Goldman Sachs Group, Inc.	250		45,311		49,837			40		7,250		7,974
JPMorgan Chase & Company	1,400		63,382		67,620			250		11,322		12,075
Merrill Lynch & Company, Inc.	430		25,733		40,033			70		4,189		6,517
Morgan Stanley	1,130		69,145		92,016			190		11,626		15,472
UBS AG	1,520		85,683		91,702			240		13,529		14,479
SLM Corporation	2,320		121,097		113,146			380		19,955		18,533
State Street Corporation	1,200		74,720		80,928			200		12,464		13,488
Western Union	2,990		63,841		67,036			460		9,859		10,313
			910,307		1,021,066	11.05	%			146,991		164,802	10.73	%
Foods
Nestle SA	1,000		87,040		88,679			170		14,797		15,075
Yum! Brands, Inc.	500		23,876		29,400			80		3,886		4,704
			110,916		118,079	1.28	%			18,683		19,779	1.29	%
Health Services
UnitedHealth Group, Inc.	980		62,486		52,655	0.57	%	180		11,477		9,671	0.63	%
Leisure & Tourism
Harrah’s Entertainment, Inc	580		41,417		47,978			90		6,502		7,445
Las Vegas Sands Company*	740		48,596		66,215			160		10,739		14,317
Starwood Hotels & Resort	800		43,356		50,000			120		6,219		7,500
			133,369		164,193	1.78	%			23,460		29,262	1.91	%
Machinery
Deere & Company	1,110		91,665		105,528			220		18,237		20,915
Rockwell Automation, Inc.	1,790		121,017		109,333			360		23,828		21,989
			212,682		214,861	2.32	%			42,065		42,904	2.79	%
Manufacturing
Precision Castparts Corporation	700		43,876		54,796	0.59	%	100		6,220		7,828	0.51	%
Medical & Health Products
Allergan, Inc.	980		105,229		117,345			160		17,329		19,158
Amgen, Inc. *	2,620		167,978		178,972			440		28,343		30,056
Baxter International, Inc.	1,700		64,591		78,863			300		11,387		13,917
Caremark Rx, Inc.	2,300		113,246		131,353			380		18,743		21,702
Celgene Corporation*	1,960		73,180		112,759			330		12,307		18,985
DENTSPLY International, Inc.	2,240		67,075		66,864			370		11,073		11,045
Eli Lilly & Company	1,730		97,701		90,133			270		15,387		14,067
Genzyme Corporation *	2,570		145,353		158,261			430		24,724		26,479
Johnson & Johnson	3,310		190,149		218,526			530		30,169		34,991
Medtronic, Inc.	2,760		146,408		147,688			460		24,301		24,615
Roche Holdings, Ltd. ADR	1,300		97,039		116,347			200		14,929		17,900
St. Jude Medical, Inc. *	1,810		73,765		66,174			300		12,220		10,968
Wyeth	2,870		118,729		146,140			440		17,570		22,405
			1,460,443		1,629,425	17.63	%			238,482		266,288	17.34	%
Semiconductors
Applied Materials, Inc.	5,100		91,873		94,095			820		14,769		15,129
Intel Corporation	9,740		232,935		197,235			1,620		38,629		32,805
Marvell Technology Group, Ltd. *	3,640		100,702		69,852			600		16,592		11,514
			425,510		361,182	3.91	%			69,990		59,448	3.87	%

See accompanying notes to financial statements.

6

Schedule of Investments (continued)

December 31, 2006

	Number Of Shares	Series Q (Qualified)					% of Net Assets		Number Of Shares	Series N (Non-Qualified)				% of Net Assets
		Cost		Market Value						Cost		Market Value
Common Stocks-Continued
Stores
Coach, Inc.*	2,100	$	91,067	$	90,216				350	$	15,178	$	15,036
CVS Corporation	2,200		58,558		68,002				350		9,716		10,818
Family Dollar Stores, Inc.	1,600		46,614		46,928				270		7,877		7,919
Lowe’s Cos., Inc.	2,920		84,168		90,958				480		14,310		14,952
Staples, Inc.	4,400		111,196		117,480				740		18,589		19,758
Target Corporation	2,220		93,652		126,651				370		15,636		21,109
W.W. Grainger, Inc.	600		44,971		41,964				100		7,538		6,994
Williams Sonoma, Inc.	1,870		78,843		58,793				310		12,917		9,746
			609,069		640,992		6.93	%			101,761		106,332	6.92	%
Telecommunications
Amdocs, Ltd. *	4,370		131,770		169,337				745		22,895		28,869
America Movil ADR Series L	1,550		51,433		70,091				260		8,627		11,757
Cisco Systems, Inc. *	12,120		209,864		331,240				1,950		34,116		53,293
Corning Inc. *	4,620		81,582		86,440				810		15,173		15,155
Juniper Networks, Inc.*	1,280		29,255		24,243				210		4,800		3,977
QUALCOMM, Inc.	1,800		66,702		68,022				300		11,157		11,337
			570,606		749,373		8.11	%			96,768		124,388	8.09	%
Transportation
FedEx Corporation	730		76,144		79,293				110		11,637		11,948
Burlington Northern Santa Fe	1,000		71,723		73,810				170		12,188		12,548
			147,867		153,103		1.66	%			23,825		24,496	1.59	%
Total Common Stocks			8,214,542		9,032,889		97.72	%			1,358,703		1,489,762	97.00	%
Short-Term Investments
Federal Home Loan Bank 4.95% due January 2, 2007	231,000		230,873		230,873		2.50	%
Total Investments		$	8,445,415	$	9,263,762		100.22	%		$	1,358,703	$	1,489,762	97.00	%
Other Assets Less Liabilities					(20,466	)	-0.22	%					46,108	3.00	%
Total Net Assets				$	9,243,296		100.00	%				$	1,535,870	100.00	%

* Non – income producing security.

See accompanying notes to financial statements.

7

Financial Highlights

Selected Per Unit Data and Ratios

	Years Ended December 31
	2006			2005			2004			2003			2002
PER UNIT DATA (a)
Series Q (Qualified)
Investment income	$	0.136		$	0.111		$	0.155		$	0.093		$	0.099
Expenses		0.207			0.209			0.192			0.172			0.180
Net investment loss		(0.071	)		(0.098	)		(0.037	)		(0.079	)		(0.081	)
Net realized and unrealized gains (losses) on investments		0.700			0.269			0.760			2.272			(4.481	)
Net increase (decrease) in net asset value		0.629			0.171			0.723			2.193			(4.562	)
Accumulation unit net asset value:
Beginning of year		12.382			12.211			11.488			9.295			13.857
End of year	$	13.011		$	12.382		$	12.211		$	11.488		$	9.295
Total Return		5.08	%		1.40	%		6.29	%		23.59	%		(32.92	%)
Series N (Non-Qualified)
Investment income	$	0.119		$	0.109		$	0.173		$	0.087		$	0.094
Expenses		0.244			0.253			0.260			0.199			0.204
Net investment loss		(0.125	)		(0.144	)		(0.087	)		(0.112	)		(0.110	)
Net realized and unrealized gains (losses) on investments		0.664			0.358			0.735			2.241			(4.563	)
Net increase (decrease) in net asset value		0.539			0.214			0.648			2.129			(4.673	)
Accumulation unit net asset value:
Beginning of year		11.993			11.779			11.131			9.002			13.675
End of year	$	12.532		$	11.993		$	11.779		$	11.131		$	9.002
Total Return		4.49	%		1.82	%		5.82	%		23.65	%		(34.17	%)
(a)    For a unit outstanding throughout the period. Additionally, the per unit amounts represent the proportionate distribution of actual investment results as related to the change in unit net asset values for the year and do not include any sales loads.
	Years Ended December 31
	2006			2005			2004			2003			2002
RATIOS
Series Q (Qualified)
Operating expenses to average accumulation fund balance		1.64	%		1.65	%		1.65	%		1.67	%		1.63	%
Net investment loss to average accumulation fund balance		(0.56	%)		(0.77	%)		(0.31	%)		(0.77	%)		(0.73	%)
Portfolio turnover rate		81	%		74	%		94	%		83	%		102	%
Accumulation units outstanding at the end of the year (in thousands)		710			768			797			826			859
Series N (Non-Qualified)
Operating expenses to average accumulation fund balance		2.01	%		2.01	%		1.97	%		2.00	%		1.91	%
Net investment loss to average accumulation fund balance		(1.03	%)		(1.14	%)		(0.66	%)		(1.12	%)		(1.03	%)
Portfolio turnover rate		83	%		74	%		93	%		83	%		104	%
Accumulation units outstanding at the end of the year (in thousands)		123			128			136			156			163

See accompanying notes to financial statements.

8

Notes to Financial Statements

December 31, 2006

1. Organization

The Paul Revere Variable Annuity Contract Accumulation Fund (“the Fund”) is a separate account of The Paul Revere Variable Annuity Insurance Company (“Paul Revere Variable”), and is registered under the Investment Company Act of 1940 as an open-end diversified investment company. Paul Revere Variable is a wholly-owned subsidiary of The Paul Revere Life Insurance Company (“Paul Revere Life”) which in turn is wholly-owned by The Paul Revere Corporation which is wholly-owned by UnumProvident Corporation, formerly Provident Companies, Inc. (“Provident”). The Fund is the investment vehicle for Paul Revere Variable’s tax-deferred group annuity contracts. The Fund consists of two series. Series Q is applicable to contracts which were afforded special tax treatment under the Internal Revenue Code and are commonly referred to as “qualified contracts”. Series N is applicable to all other contracts and are commonly referred to as “non-qualified contracts”.

2. Accounting policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in those statements and accompanying notes. Actual results may differ from such estimates.

Common stocks are stated at market values which are based on the last sales prices at December 31, 2006, as reported on national security exchanges. Short-term notes are stated at amortized cost which approximates market value. Unrealized investment gains and losses are included in contract owners’ equity. Realized gains and losses on investments sold are determined on the basis of specific identification of investments. Security transactions are accounted for on the day after the securities are purchased or sold. Dividend income is recorded on the ex-dividend date. Interest income is accrued on a daily basis.

The Fund does not distribute net investment income and net realized capital gains through dividends to contract owners. The allocation of net investment income and net realized capital gains occurs automatically in the daily determination of unit net asset values. They are, therefore, included in the value of the contracts in force and in payments to contract owners.

Contract owners’ equity is comprised of two components. Deferred contracts terminable by owner represent amounts attributable to contracts which have not yet annuitized. Currently payable contracts include amounts equivalent to the annuity reserves relating to contracts with current annuities. Annuity reserves are computed for currently payable contracts according to the 1900 Progressive Annuity Mortality Table. The assumed interest rate is either 3.5% or 5% according to the option elected by the annuitant at the time of conversion. Paul Revere Variable bears all the mortality risk associated with these contracts.

3. Investment advisor

Paul Revere Variable acts as investment advisor and underwriter to the Fund and provides mortality and expense guarantees to holders of variable annuity contracts. For these services, Paul Revere Variable receives mortality and expense risk fees and investment management and advisory service fees as shown on the statements of operations which, on an annual basis, will not exceed 2% of the average daily net asset value of the Fund. The current rate for such fees is 1.5% of the average daily net asset value of the Fund.

Certain administrative services of the Fund are provided by The Variable Annuity Life Insurance Company (“VALIC”) under a contract dated May 15, 1998. These services include processing of unit transactions and daily unit value calculations subsequent to December 1, 1998 as well as accounting and other services.

4. Investment sub-advisor

Under an investment sub-advisory agreement with MFS Institutional Advisors, Inc. (“MFSI”), MFSI provides investment management services to Paul Revere Variable for a fee which, on an annual basis, will equal 0.35% of the average daily net assets of each series of the Fund. This fee is borne by Paul Revere Variable only and does not represent an additional charge to the Fund.

9

Notes to Financial Statements (continued)

December 31, 2006

5. Federal income taxes

The Fund’s operations are included with those of Paul Revere Variable, which is taxed as a life insurance company under the Internal Revenue Code and is included in a consolidated federal tax return filed by Paul Revere Life. In the opinion of Paul Revere Variable management, current law provides that investment income and capital gains from assets maintained in the Fund for the exclusive benefit of the contract owners are generally not subject to federal income tax. However, to the extent that Paul Revere Variable incurs federal income taxes based on the income from the Fund’s assets, the Fund will be charged. No charges for federal income taxes have been made since the inception of the Fund.

6. Security transactions

The aggregate cost of securities purchased and proceeds of securities sold, other than securities with maturities of one year or less, were as follows:

	Series Q (Qualified)				Series N (Non-Qualified)
	Purchases		Sales		Purchases		Sales
Year ended December 31, 2006	$	7,306,633	$	8,306,591	$	1,209,168	$	1,319,691

At December 31, 2006, net unrealized appreciation of investments in Series Q, amounting to $818,348, consisted of unrealized gains of $1,014,384 and unrealized losses of $196,036, net unrealized appreciation of investments in Series N, amounting to $131,059, consisted of unrealized gains of $163,560 and unrealized losses of $32,501.

7. Accumulation units

The change in the number of accumulation units outstanding were as follows:

	Series Q (Qualified)
	2006		2005
Units outstanding at beginning of year	767,596		796,794
Units withdrawn from contracts:
Annuity payments	19,568		20,372
Terminations and withdrawals	37,631		8,826
Net units withdrawn	57,199		29,198
Contract units withdrawn in excess of units credited	(57,199	)	(29,128	)
Units outstanding at end of year	710,397		767,596

10

Notes to Financial Statements (continued)

December 31. 2006

7. Accumulation units (continued)

	Series N (Non-Qualified)
	2006		2005
Units outstanding at beginning of year	127,504		135,576
Units credited to contracts:
Net purchase payments	—		23
Units withdrawn from contracts:
Annuity payments	4,420		4,579
Terminations and withdrawals	526		3,516
Net units withdrawn	4,946		8,095
Contract units withdrawn in excess of units credited	(4,946	)	(8,072	)
Units outstanding at end of year	122,558		127,504

8. Subsequent Event

On February 16, 2007, Series Q of the Fund had a termination in the amount of $6,036,756. The termination was requested by the UnumProvident Corporation Pension Plan in an effort to consolidate various pension plan assets into a centralized investment location.

11

Item 2. Code of Ethics.

(a) The Registrant has adopted a Code of Ethics that applies to its principal executive officer, principal financial officer and principal accounting officer. A copy of the Registrant’s Code of Ethics is filed herewith as Exhibit 10(a)(1).

(b) During the period covered by this report, no amendments were made to the provisions of the Code of Ethics described in 2(a) above.

(c) During the period covered by this report, no implicit or explicit waivers of the provisions of the Code of Ethics described in 2(a) above were granted.

Item 3. Audit Committee Financial Expert.

The Fund has assets of under $10 million. It has no audit committee and no audit committee financial expert. The Board of Managers of the Fund consists of independent directors that control 3/5 of the Board. The Board receives quarterly reports on the transactions in the Fund. Because of the nature of the Fund’s business there are no sensitive accounting estimates used in preparation of the financial statements of the Fund.

Item 4. Principal Accountant Fees and Services.

All audit and other fees paid to the auditors for work related to the Fund are paid by Unum Group and are not charged to or paid from the Fund.

Audit Fees –Ernst & Young LLP billed Unum Group $17,100.00 for the audit of the financial statements of the Fund for 2006, and $16,100.00 for the audit of the financial statements of the Fund for 2005.

Audit-Related Fees – The aggregate fees for audit related services rendered by Ernst & Young LLP to the Fund, the investment adviser or any entity controlling, controlled by or under common control with the investment adviser in 2006 and 2005 for such services were $0.00 and $0.00.

Tax Fees – The aggregate fees related to tax compliance, tax advice and tax planning services to the Fund for fiscal years ended December 31, 2006, and December 31, 2005, were $0.00 and $0.00.

All Other Fees—The aggregate fees rendered by Ernst & Young LLP to the Fund, the investment adviser or any entity controlling, controlled by or under common control with the investment adviser, or Unum Group for such services to the Fund in 2006 and 2005 were $0.00 and $0.00.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

Schedule of investments is included as of the close of the reporting period as part of the report to shareholders filed under Item 1 of this Form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

REGISTRANT PURCHASES OF EQUITY SECURITIES

	(a)	(b)	(c)	(d)
Period	Total Number of Shares (or Units) Purchased	Average Price Paid per Share (or Unit)	Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
Month #1 (identify beginning and ending dates)
Month #2 (identify beginning and ending dates)
Month #3 (identify beginning and ending dates)
Month #4 (identify beginning and ending dates)
Month #5 (identify beginning and ending dates)
Month #6 (identify beginning and ending dates)
Total

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a) Within the 90-day period prior to the filing of this report, the Registrant’s management, including the person serving as both the Registrant’s Chief Executive Officer and Chief Financial Officer conducted an evaluation of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures as defined in Investment Company Act Rule 30a-3(c). Based on that evaluation, the Chief Executive Officer/Chief Financial Officer concluded that the Registrant’s disclosure controls and procedures were effective as of the date of that evaluation.

(b) No change in the Registrant’s internal control over financial reporting that materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting, occurred during the Registrant’s most recent second fiscal half-year.

Item 12. Exhibits.

The following exhibits are attached to this Form N-CSR:

(1) Code of Ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, attached hereto as Exhibit 10(a)(1).

(2) Certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 C.F.R. 270.30a-2(a)), attached hereto as Exhibit 31.

(3) Certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(b) under the Act (17 C.F.R. 270.30a-2(b)), attached hereto as Exhibit 32.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

The Paul Revere Variable Annuity
Contract Accumulation Fund
By (Signature and Title):	/s/ Donald E. Boggs
	Donald E. Boggs, Chairman, Board of Managers
	Signing in the capacity of Chief Executive Officer and Chief Financial Officer

Date: March 1, 2007.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following person on behalf of the Registrant and in the capacities and on the dates indicated.

By (Signature and Title):	/s/ Donald E. Boggs
	Donald E. Boggs, Chairman, Board of Managers
	Signing in the capacity of Chief Executive Officer and Chief Financial Officer

Date: March 1, 2007.