FORM N-SAR
SEMI-ANNUAL REPORT
FOR REGISTERED INVESTMENT COMPANIES
Report for six month period ending: / /
(a)
or fiscal year ending: 12 / 31
/ 98 (b)
Is this a transmission report?: (Y/N) N
Is this an amendment to a previous filing? (Y/N) N
Those items or sub-items with a box after the item number
should
be completed only if the answer has changed from the
previous filing
on this form.
1. A. Registrant Name: The Prudential Discovery Select
Group
Variable Contract Account
B. File Number: 811-08091
C. Telephone Number 973-367-1496
2. A. Street: 100 Mulberry Street - 9th Floor
B. City: Newark C. State: NJ D. Zip Code
07102 Zip Ext: 3777
E. Foreign Country: Foreign
Postal Code:
3. Is this the first filing on this form by Registrant?
(Y/N) N
4. Is this the last filing on this form by Registrant?
(Y/N) N
5. Is Registrant a small business investment company
(SBIC)? (Y/N) N
[If answer is "Y" (Yes), complete only items 89
through
110].
6. Is Registrant a unit investment trust (UIT)? (Y/N) Y
[If answer is "Y" (Yes), complete only items 111
through
132].
7. A. Is Registrant a series or multiple portfolio
company?
(Y/N)
[If answer is "N", go to item 8.]
B. How many separate series or portfolios did
Registrant
have at the end of the period?
UNIT INVESTMENT TRUSTS
111. A. Depositor Name: The Prudential Insurance
Company of America
B. File Number (If any): 801-12484
C. City: Newark State: NJ
Zip Code:07102
Zip Ext.: 3777
Foreign Country: Foreign
Postal Code:
111. A. Depositor Name:
B. File Number (If any):
C. City: State:
Zip Code:
Zip Ext.:
Foreign Country: Foreign
Postal Code:
112. A. Sponsor Name:
B. File Number (If any):
C. City: State:
Zip Code:
Zip Ext.:
Foreign Country: Foreign
Postal Code:
112. A. Sponsor Name:
B. File Number (If any):
C. City: State:
Zip Code:
Zip Ext.:
Foreign Country: Foreign
Postal Code:
113. A. Trustee Name:
B. City: State:
Zip Code:
Zip Ext.:
Foreign Country: Foreign
Postal Code:
113. A. Trustee Name:
B. City: State:
Zip Code:
Zip Ext.:
Foreign Country: Foreign
Postal Code:
114. A. Principal Underwriter Name: Prudential
Investment Management Services LLC
B. File Number: 8-36540
C. City: Newark State: NJ Zip
Code: 07102
Zip Ext.: 3777
Foreign Country: Foreign
Postal Code:
114. A. Principal Underwriter Name:
B. File Number: 8-
C. City: State:
Zip Code:
Zip Ext.:
Foreign Country: Foreign
Postal Code:
115. A. Independent Public Accountant Name:
PricewaterhouseCoopers LLP
B. City: NY State: NY Zip
Code: 10036
Zip Ext.:
Foreign Country: Foreign
Postal Code:
115. A. Independent Public Accountant Name:
B. City: State:
Zip Code:
Zip Ext.:
Foreign Country: Foreign
Postal Code:
116. Family of investment companies information:
A. Is Registrant part of a family of
investment
companies? (Y/N) Y
B. Identify the family in 10 letters:
PRUDENTIAL
(NOTE: In filing this form, use this
identification
consistently for all
investment companies in
family. This
designation is for purposes of
this form only.)
117. A. Is Registrant a separate account of an
insurance
company? (Y/N) Y
If answer is "Y" (Yes), are any of the following
types of
contracts funded by the Registrant?:
B. Variable annuity contracts? (Y/N) Y
C. Scheduled premium variable life
contracts? (Y/N) N
D. Flexible premium variable life contracts?
(Y/N) N
E. Other types of insurance products
registered under the
Securities Act of 1933? (Y/N) N
118. State the number of series existing at the end of
the period
that had securities registered under the
Securities Act of
1933. 1
119. State the number of new series for which
registration
statements under the Securities Act of 1933
became
effective during the period. -0-
120. State the total value of the portfolio securities
on the date
of deposit for the new series included in item
119 ($000's -0-
omitted) - 0-
121. State the number of series for which a current
prospectus
was in existence at the end of the period. 22
122. State the number of existing series for which
additional
units were registered under the Securities Act
of 1933
during the current period. 22
123. State the total value of the additional units
considered in
answering item 122 ($000's omitted) $24,798
124. State the total value of units of prior series that
were placed
in the portfolios of subsequent series during
the current
period (the value of these units is to be
measured on the
date they were placed in the subsequent series)
($000's
omitted) $ -0-
125. State the total dollar amount of sales loads
collected
(before allowances to other brokers or dealers)
by
Registrant's principal underwriter and any
underwriter
which is an affiliated person of the principal
underwriter
during the current period solely from the sale
of units of all
series of Registrant ($000's omitted) $ -0-
126. Of the amount shown in item 125, state the total
dollar
amount of sales loads collected from secondary
market
operations in Registrant's units (include the
sales loads, if
any, collected on units of a prior series placed
in the
portfolio of a subsequent series.) ($000's
omitted) $-0-
Number of Total Assets Total Income
Series ($000's) Distributions
Investing omitted) ($000's omitted)
A. U.S. Treasury direct issue
B. U.S. Government agency
C. State and municipal tax-free
D. Public utility debt
E. Brokers or dealers debt of
debt of brokers' or dealers' parent
F. All other corporate intermed & long-
term debt
G. All other corporate short-term debt
H. Equity securities of brokers or dealers
or parents of brokers or dealers
I. Investment company equity securities
J. All other equity securities
22 24,798 ---
K. Other securities
L. Total assets of all series of registrant
128. Is the timely payment of principal and interest on
any of
the portfolio securities held by any of
Registrant's series at
the end of the current period insured or
guaranteed by an
entity other than the issuer? (Y/N) N
129. Is the issuer of any instrument covered in item 128
delinquent or in default as to payment of
principal or
interest at the end of the current period? (Y/N)
130. In computations of NAV or offering price per unit,
is any
part of the value attributed to instruments
identified in item
129 derived from insurance or guarantees? (Y/N)
131. Total expenses incurred by all series of Registrant
during
the current reporting period ($000's omitted)
$ 82
132. List the "811" (Investment Company Act of 1940)
registration number for all Series of Registrant
that are
being included in this filing:
811-08091 811-
811- 811-
811- 811-
811- 811-
811- 811-
811- 811-
811- 811-
811- 811-
811- 811-
811- 811-
811- 811-
811- 811-
811- 811-
811- 811-
811- 811-
811- 811-
811- 811-
811- 811-
To the Board of Directors of The Prudential Insurance
Company of America and the Contract Holders
of The Prudential Discovery Select Group Variable Contract
Account
(2)
Report of Independent Accountants
To the Board of Directors of The Prudential Insurance
Company of America and the Contract Holders of The
Prudential Discovery Select Group Variable Contract Account
In planning and performing our audit of the financial
statements of The Prudential Discovery Select Group Variable
Contract Account (the "Account") for the year ended December
31, 1998, we considered its internal control, including
control activities for safeguarding securities, in order to
determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to
comply with the requirements of Form N-SAR, not to provide
assurance on internal control.
The management of the Account is responsible for
establishing and maintaining internal control. In
fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and
related costs of controls. Generally, controls that are
relevant to an audit pertain to the entity's objective of
preparing financial statements for external purposes that
are fairly presented in conformity with generally accepted
accounting principles. Those controls include the
safeguarding of assets against unauthorized acquisition, use
or disposition.
Because of inherent limitations in internal control, errors
or fraud may occur and not be detected. Also, projection of
any evaluation of internal control to future periods is
subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in internal control that might be
material weaknesses under standards established by the
American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or
operation of one or more of the internal control components
does not reduce to a relatively low level the risk that
misstatements caused by error or fraud in amounts that would
be material in relation to the financial statements being
audited may occur and not be detected
within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no
matters involving internal control and its operation,
including controls for safeguarding securities, that we
consider to be material weaknesses as defined above as of
December 31, 1998.
This report is intended solely for the information and use
of management and the Committee of the Account and the
Securities and Exchange Commission.
PricewaterhouseCoopers LLP
New York, New York
February 25, 1999
