<PAGE>
PFL Endeavor Target Account
Semi-Annual Report
June 30, 2000
(Unaudited)
<PAGE>
Policyholder Letter
Dear Valued Policyholder:
We are pleased to present you with the market activity information on PFL
Endeavor Target Account for the period ending June 30, 2000. We hope that you
will find the underlying investment information interesting and informative.
This correspondence is also an opportunity to remind you that we welcome your
comments and ideas as to how we can serve you even better. If you have any
questions or comments, please call the Variable Annuity Department at 800-525-
6205.
You can be assured of our continuing commitment to providing quality products
and excellent service to our policyholders.
Sincerely yours,
/s/ Vincent J. McGuinness, Jr.
Vincent J. McGuinness, Jr.
President and Chief Executive Officer
PFL Endeavor Target Account
-1-
<PAGE>
Portfolio Manager Letter
The Federal Reserve voted in May to increase short-term interest rates an
additional one-half percent. The federal funds rate jumped from 6.0 to 6.5%
while the discount rate moved from 5.5 to 6.0%. The combination of rising
interest rates and surging oil prices, now selling in excess of $30 per barrel,
battered many highly valued technology stocks and proved too much for several
old economy stocks in the DJIA index. In particular, AT&T, International Paper,
General Motors, Du Pont, J.P. Morgan, and Caterpillar declined anywhere from
14% to 44% in the second quarter. Value investing lagged growth investing in
the second quarter, as measured by Standard & Poors. The S&P Barra Growth Index
was down 1.6% while the S&P Barra Value Index declined 4.75%. Over the next six
months, we believe stock valuations will be driven by two components: corporate
earnings and the successful execution of a soft landing for the U.S. economy.
The July Target 5 Subaccount slightly underperformed the DJIA in the second
quarter of 2000. Philip Morris, Eastman Kodak, and Sears performed well up
25.7%, 9.8% and 6.4% respectively. General Motors and Caterpillar performed
poorly declining 30% and 14.1% respectively.
The July Target 10 Subaccount underperformed the DJIA in the second quarter of
2000. Philip Morris, Eastman Kodak, and Sears performed well up 25.7%, 9.8% and
6.4% respectively. General Motors, Du Pont (E.I.), J.P. Morgan, and Caterpillar
performed poorly declining 30%, 17.3%, 16.4%, and 14.1% respectively.
The January Target 5 Subaccount outperformed the DJIA in the second quarter of
2000. Philip Morris, Eastman Kodak, and SBC Communications performed well up
25.7%, 9.8%, and 2.7% respectively. International Paper and Caterpillar
performed poorly declining 30.3% and 14.1% respectively.
The January Target 10 Subaccount underperformed the DJIA in the second quarter
of 2000. Philip Morris, Eastman Kodak, and SBC Communications performed well up
25.7%, 9.8% and 2.7% respectively. International Paper, General Motors, Du Pont
(E.I.), J.P. Morgan, and Caterpillar experienced declines of 30.3%, 30%, 17.3%,
16.4%, and 14.1% respectively.
First Trust Advisors L.P.
-2-
<PAGE>
Schedule of Investments
PFL Endeavor Target Account
Dow Target 5--July Series Subaccount
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
------ -----------
<S> <C> <C> <C>
COMMON STOCK--99.8%
Automotives--23.6%
General Motors Corporation............................ 46,140 $ 2,679,004
-----------
Consumer Products--17.7%
Philip Morris Companies, Inc. ........................ 75,776 2,012,800
-----------
Machinery--15.2%
Caterpillar, Inc...................................... 50,758 1,719,427
-----------
Miscellaneous Manufacturing Industries--23.6%
Eastman Kodak Company................................. 44,933 2,673,513
-----------
Retail--19.7%
Sears Roebuck & Company............................... 68,307 2,228,516
-----------
Total Common Stock
(Cost $14,478,436)................................... 11,313,260
-----------
TOTAL INVESTMENTS
(Cost $14,478,436*).................................... 99.8% 11,313,260
OTHER ASSETS AND LIABILITIES (Net)...................... 0.2% 23,653
------ -----------
NET ASSETS.............................................. 100.0% $11,336,913
====== ===========
</TABLE>
*Aggregate cost for federal tax purposes.
See accompanying notes
-3-
<PAGE>
Schedule of Investments
PFL Endeavor Target Account
Dow Target 10--July Series Subaccount
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
------ -----------
<S> <C> <C>
COMMON STOCK--97.6%
Automotives--10.7%
General Motors Corporation............................... 21,577 $ 1,252,815
-----------
Consumer Products--8.1%
Philip Morris Companies, Inc. ........................... 35,428 941,056
-----------
Diversified Chemicals--7.8%
DuPont (E.I.) De Nemours & Company....................... 20,841 911,794
-----------
Diversified Manufacturing--11.6%
Minnesota Mining & Manufacturing Company................. 16,381 1,351,432
-----------
Financial Services--9.6%
J.P. Morgan & Company, Inc. ............................. 10,130 1,115,566
-----------
Machinery--6.9%
Caterpillar, Inc......................................... 23,732 803,921
-----------
Miscellaneous Manufacturing Industries--10.7%
Eastman Kodak Company.................................... 21,018 1,250,571
-----------
Oil and Gas Extraction--12.4%
Exxon Mobil Corporation.................................. 18,453 1,448,561
-----------
Petroleum Refining--10.9%
Chevron Corporation...................................... 14,955 1,268,371
-----------
Retail--8.9%
Sears Roebuck & Company.................................. 31,916 1,041,260
-----------
Total Common Stock
(Cost $13,701,017)...................................... 11,385,347
-----------
TOTAL INVESTMENTS
(Cost $13,701,017*)....................................... 97.6% 11,385,347
OTHER ASSETS AND LIABILITIES (Net)......................... 2.4% 276,978
------ -----------
NET ASSETS................................................. 100.0% $11,662,325
====== ===========
</TABLE>
*Aggregate cost for federal tax purposes.
See accompanying notes
-4-
<PAGE>
Schedule of Investments
PFL Endeavor Target Account
Dow Target 5--January Series Subaccount
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
------ ----------
<S> <C> <C>
COMMON STOCK--98.3%
Consumer Products--27.1%
Philip Morris Companies, Inc.............................. 55,865 $1,483,914
----------
Machinery--16.9%
Caterpillar, Inc.......................................... 27,308 925,059
----------
Miscellaneous Manufacturing Industries--21.1%
Eastman Kodak Company..................................... 19,392 1,153,824
----------
Paper and Paper Products--12.4%
International Paper Company............................... 22,768 678,771
----------
Telecommunications--20.8%
SBC Communications........................................ 26,353 1,139,767
----------
Total Common Stock
(Cost $6,053,195)........................................ 5,381,335
----------
TOTAL INVESTMENTS
(Cost $6,053,195*)......................................... 98.3% 5,381,335
OTHER ASSETS AND LIABILITIES (Net).......................... 1.7% 90,339
------ ----------
NET ASSETS.................................................. 100.0% $5,471,674
====== ==========
</TABLE>
*Aggregate cost for federal tax purposes.
See accompanying notes
-5-
<PAGE>
Schedule of Investments
PFL Endeavor Target Account
Dow Target 10--January Series Subaccount
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
------ ----------
<S> <C> <C>
COMMON STOCK--99.3%
Automotives--9.5%
General Motors Corporation................................ 11,914 $ 691,757
----------
Consumer Products--13.8%
Philip Morris Companies, Inc.............................. 37,737 1,002,389
----------
Diversified Chemicals--7.9%
duPont (E.I.) de Nemours & Company........................ 13,140 574,875
----------
Diversified Manufacturing--10.0%
Minnesota Mining & Manufacturing Company.................. 8,843 729,547
----------
Financial Services--10.4%
J.P. Morgan & Company, Inc. .............................. 6,837 752,925
----------
Machinery--8.6%
Caterpillar, Inc.......................................... 18,390 622,961
----------
Miscellaneous Manufacturing Industries--10.7%
Eastman Kodak Company..................................... 13,071 777,724
----------
Oil & Gas Extraction--11.6%
Exxon Mobil Corporation................................... 10,749 843,797
----------
Paper and Paper Products--6.3%
International Paper Co. .................................. 15,349 457,592
----------
Telecommunications--10.5%
SBC Communications, Inc. ................................. 17,772 768,639
----------
Total Common Stock
(Cost $8,650,399)........................................ 7,222,206
----------
TOTAL INVESTMENTS
(Cost $8,650,399*)......................................... 99.3% 7,222,206
OTHER ASSETS AND LIABILITIES (Net).......................... 0.7% 47,605
------ ----------
NET ASSETS.................................................. 100.0% $7,269,811
====== ==========
</TABLE>
*Aggregate cost for federal tax purposes.
See accompanying notes
-6-
<PAGE>
Statements of Assets and Liabilities
PFL Endeavor Target Account
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Dow Target 5 Dow Target 10 Dow Target 5 Dow Target 10
July Series July Series January Series January Series
Subaccount Subaccount Subaccount Subaccount
------------ ------------- -------------- --------------
<S> <C> <C> <C> <C>
Assets
Investment in
securities, at market
value $11,313,260 $11,385,347 $5,381,335 $7,222,206
Cash 5,929 277,479 80,488 60,604
Receivable from
investment securities
sold -- -- -- 99,512
Dividends and/or
interest receivable 71,259 44,943 36,075 30,334
----------- ----------- ---------- ----------
Total assets $11,390,448 $11,707,769 $5,497,898 $7,412,656
=========== =========== ========== ==========
Liabilities and
contract owners'
equity
Liabilities:
Payable for investment
securities purchased $ -- $ -- $ -- $ 101,010
Management fee payable 7,379 7,597 3,491 4,834
Accrued Expenses
payable 28,694 22,097 13,497 12,994
Fund redemption payable 17,462 15,750 9,236 24,007
----------- ----------- ---------- ----------
Total liabilities 53,535 45,444 26,224 142,845
Contract owners'
equity:
Deferred annuity
contracts terminable
by owners 11,336,913 11,662,325 5,471,674 7,269,811
----------- ----------- ---------- ----------
Total liabilities and
contract owners'
equity $11,390,448 $11,707,769 $5,497,898 $7,412,656
=========== =========== ========== ==========
</TABLE>
See accompanying notes
-7-
<PAGE>
Statements of Operations
PFL Endeavor Target Account
For the Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Dow Target 5 Dow Target 10 Dow Target 5 Dow Target 10
July Series July Series January Series January Series
Subaccount Subaccount Subaccount Subaccount
------------ ------------- -------------- --------------
<S> <C> <C> <C> <C>
Net investment income
Investment income:
Dividends $ 241,925 $ 203,692 $ 119,646 $ 128,213
Interest -- -- -- --
----------- ----------- ----------- -----------
Total investment income 241,925 203,692 119,646 128,213
----------- ----------- ----------- -----------
Expenses:
Investment management fee 50,637 50,109 23,619 29,775
Administration fees 5,453 5,410 4,972 4,972
Custodian fees 1,173 2,657 2,153 3,211
Transfer agent fees 47 36 15 15
Legal fees 963 963 963 463
Audit fees 1,057 1,057 1,057 1,057
Trustee fees and expenses 2,828 4,085 758 916
Printing 12,782 12,832 6,062 7,409
Other 2,045 701 1,653 1,031
Policy Fees 3,586 1,224 6,427 5,810
Mortality and expense
risk charge 102,410 102,074 47,917 60,423
----------- ----------- ----------- -----------
Total gross expenses 182,981 181,148 95,596 115,082
Less:
Waiver/reimbursement from
investment manager -- -- (169) --
Credits allowed by
custodian -- (1,557) (1,705) (1,893)
----------- ----------- ----------- -----------
Total net expenses 182,981 179,591 93,722 113,189
----------- ----------- ----------- -----------
Net investment income 58,944 24,101 25,924 15,024
----------- ----------- ----------- -----------
Net realized and
unrealized capital
(loss) from investments
Proceeds from sales of
investments 5,065,498 3,770,605 10,353,471 6,739,477
Costs of investments sold 6,360,641 3,874,045 12,438,932 7,445,455
----------- ----------- ----------- -----------
Net realized capital
(loss) on investments (1,295,143) (103,440) (2,085,460) (705,978)
Net change in unrealized
appreciation/
depreciation of
investments:
Beginning of the period (3,161,892) (837,378) (1,314,126) (698,023)
End of the period (3,165,176) (2,315,670) (671,860) (1,428,193)
----------- ----------- ----------- -----------
Net change in
unrealized
appreciation/
depreciation of
investments (3,284) (1,478,292) 642,266 (730,170)
----------- ----------- ----------- -----------
Net realized and
unrealized capital
(loss) from
investments (1,298,427) (1,581,732) (1,443,194) (1,436,148)
----------- ----------- ----------- -----------
Decrease from operations $(1,239,483) $(1,557,631) $(1,417,270) $(1,421,124)
=========== =========== =========== ===========
</TABLE>
See accompanying notes
-8-
<PAGE>
Statements of Changes in Contract Owners' Equity
PFL Endeavor Target Account
For the Six Months Ended June 30, 2000 (Unaudited) and
For the Year Ended December 31, 1999
<TABLE>
<CAPTION>
Dow Target 5 Dow Target 10 Dow Target 5 Dow Target 10
July Series July Series January Series January Series
Subaccount Subaccount Subaccount Subaccount
2000 1999 2000 1999 2000 1999(1) 2000 1999(1)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operations
Net investment income
(loss) $ 58,944 $ 38,136 $ 24,101 $ 8,643 $ 25,924 $ (914) $ 15,024 $ 569
Net realized capital
gain (loss) (1,295,143) 1,094,179 (103,440) 512,270 (2,085,460) 126,117 (705,978) 7,813
Net change in
unrealized
appreciation/
depreciation of
investments (3,284) (4,382,144) (1,478,292) (1,226,736) 642,266 (1,314,126) (730,170) (698,023)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease)
from operations (1,239,483) (3,249,829) (1,557,631) (705,823) (1,417,270) (1,188,923) (1,421,124) (689,641)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Contract transactions
Net contract purchase
payments 242,199 6,265,956 270,671 5,640,536 518,576 6,605,239 561,752 7,479,940
Transfer payments from
other subaccounts or
general account (3,639,491) 803,957 (3,196,492) 2,238,202 (1,595,373) 2,961,916 (2,103,055) 3,874,139
Contract terminations,
withdrawals, and
other deductions (1,131,941) (971,056) (331,147) (923,723) (266,891) (145,600) (316,886) (115,314)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease)
from contract
transactions (4,529,233) 6,098,857 (3,256,968) 6,955,015 (1,343,688) 9,421,555 (1,858,189) 11,238,765
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase
(decrease) in
contract owners'
equity (5,768,716) 2,849,028 (4,814,599) 6,249,192 (2,760,958) 8,232,632 (3,279,313) 10,549,124
Contract owner's equity
Beginning of the
period 17,105,629 14,256,601 16,476,924 10,227,732 8,232,632 -- 10,549,124 --
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
End of the period $11,336,913 $17,105,629 $11,662,325 $16,476,924 $ 5,471,674 $ 8,232,632 $ 7,269,811 $10,549,124
=========== =========== =========== =========== =========== =========== =========== ===========
</TABLE>
(1) Commencement of operations, January 4, 1999
See accompanying notes
-9-
<PAGE>
Notes to Financial Statements
PFL Endeavor Target Account
June 30, 2000 (Unaudited)
1. Organization and Summary of Significant Accounting Policies
Organization:
The PFL Endeavor Target Account (the Target Account) is a segregated investment
subaccount of PFL Life Insurance Company (PFL Life), an indirect wholly-owned
subsidiary of AEGON N.V., a holding company organized under the laws of The
Netherlands.
The Target Account is registered with the Securities and Exchange Commission
(SEC) as an open-end management investment company pursuant to provisions of
the Investment Company Act of 1940. The SEC, however, does not supervise the
management or the investment practices or policies of the Target Account. The
Target Account is currently divided into four investment subaccounts, DOW
Target 5--July Series ("Target 5--July"), DOW Target 10--July Series ("Target
10--July"), DOW Target 5--January Series ("Target 5--January") and DOW Target
10--January Series ("Target 10--January"). Investment activity in these
investment subaccounts is available for investment to contract owners of The
Endeavor Variable Annuity, The Endeavor Platinum Variable Annuity, and The
Endeavor ML Variable Annuity (the Variable Annuities), issued by PFL Life. Net
purchase payments received by the Target Account for the Variable Annuities are
invested in the subaccounts as selected by the contract owner. The Target 5--
July and Target 10--July commenced operations on July 1, 1998. The Target 5--
January and Target 10--January commenced operations on January 1, 1999.
Portfolio Valuation:
The Target Account's investments are valued at market value as determined using
the last reported sale price at the close of the New York Stock Exchange on
June 30, 2000.
Income Taxes:
Operations of the Target Account form a part of PFL Life, which is taxed as a
life insurance company under Subchapter L of the Internal Revenue Code of 1986,
as amended (the "Code"). The operations of the Target Account are accounted for
separately from other operations of PFL Life for purposes of federal income
taxation. The Target Account is not separately taxable as a regulated
investment company under Subchapter M of the Code and is not otherwise taxable
as an entity separate from PFL Life. Under existing federal income tax laws,
the income of the Target Account, to the extent applied to increase reserves
under the variable annuity contracts, is not taxable to PFL Life.
Securities Transactions and Investment Income:
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Dividend income is recorded on the ex-dividend date. Unrealized gains or losses
from investments are credited or charged to contract owners' equity.
Concentration of Risk:
An investment in the Target Account may be subject to additional risk due to
the relative lack of diversity in its portfolio.
2. Fees and Expenses
The Target Account is managed by Endeavor Management Company, (the Investment
Manager), an affiliate of PFL Life, pursuant to a management agreement. The
Investment Manager is responsible for providing
-10-
<PAGE>
Notes to Financial Statements
PFL Endeavor Target Account
June 30, 2000 (Unaudited)
2. Fees and Expenses (continued)
investment management and administrative services to the Target Account. First
Trust Advisers L.P. (the Adviser) is the Account's investment Adviser. As
compensation for these services, the Target Account pays the Investment Manager
a monthly fee based on a percentage of the average daily net assets at the
annual rate of 0.75% for each Subaccount. In addition, the Investment Manager
pays the Adviser a fee equal to 0.35% of the average daily net assets.
The Subaccounts pay all expenses not assumed by the Investment Manager. PFPC
Inc. (PFPC), formerly First Data Investor Services Group, Inc., a majority-
owned subsidiary of PNC Bank Corp, serves as Administrator to the Subaccounts
and is paid a flat fee of $10,000 per annum for each Subaccount. PFPC also
serves as the Fund's transfer agent.
From time to time the Investment Manager may waive a portion or all of the fees
otherwise payable to it and/or reimburse the Target Account for expenses. The
Investment Manager has voluntarily undertaken to waive its fees and has agreed
to bear certain expenses to ensure that total expenses do not exceed 1.30% of
the Subaccount's average daily net assets. For the period ended June 30, 2000,
the Investment Manager waived and reimbursed expenses of $169 for the Target
10-January. Boston Safe Deposit and Trust Company (BSDT), an indirect wholly-
owned subsidiary of Mellon Bank Corporation, serves as the Subaccounts'
custodian. BSDT has agreed to compensate the Target Account and decrease
custody fees for cash balances left uninvested by the Subaccounts. For the
period ended June 30, 2000, the Target Account's expenses were reduced as
follows: Dow Target 10-July Series $1,557, Dow Target 5-January Series $1,705,
Dow Target 10-January Series $1,893.
No director, officer or employee of the Investment Manager, Endeavor Management
Co., the Advisers or PFPC received any compensation from the Fund for serving
as an officer or Trustee of the Fund. The Target Account pays each Trustee who
is not a director, officer or employee of the Investment Manager, Endeavor
Management Co., the Advisers, PFPC or any of their affiliates $1,000 per annum
plus $100 per regularly scheduled meeting attended and reimburses them for
travel and out-of-pocket expenses.
Administrative charges include an annual charge of the lesser of 2% of the
policy value or $35 per contract which will commence on the first policy
anniversary of each contract owner's account. For policies issued on or after
May 1, 1995, the fee is waived if the sum of the premium payments less the sum
of all partial withdrawals is at least $50,000 on the policy anniversary.
Charges for administrative fees to the variable annuity contracts are an
expense of the Target Account.
PFL Life deducts a daily charge for assuming certain mortality and expense
risks. For the 5% Annually Compounding Death Benefit and the Annual Step-Up
Death Benefit, this charge is equal to an effective annual rate of 1.25% of the
value of the contract owners' individual account. For the Return of Premium
Death Benefit, the corresponding charge is equal to an effective annual rate of
1.10% of the value of the contract owners' individual account. PFL Life also
deducts a daily administrative charge equal to an annual rate of .15% of the
contract owners' account for administrative expenses. For certain policies of
Endeavor Variable Annuity and of Endeavor ML Variable annuity sold on or after
May 1, 1997, during the first seven policy years, PFL Life deducts a daily
Distribution Finance Charge equal to an effective annual rate of .15% of the
contract owners' account. For certain policies of Endeavor Platinum Variable
Annuity sold on or after May 1, 1997, during the first ten policy years, PFL
Life deducts a daily Distribution Finance Charge equal to an effective annual
rate of .25% of the contract owners' account.
-11-
<PAGE>
Notes to Financial Statements
PFL Endeavor Target Account
June 30, 2000 (Unaudited)
3. Securities Transactions
The aggregate cost of purchases and proceeds from sales of investments were as
follows:
<TABLE>
<CAPTION>
Period Ended June 30, and the year end
December 31,
----------------------------------------------
2000 1999
---------------------- -----------------------
Purchases Sales Purchases Sales
---------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Dow Target 5--July Series
Subaccount $ 568,315 $ 5,065,498 $22,486,933 $16,651,910
Dow Target 10--July Series
Subaccount 229,303 3,770,605 12,059,101 5,495,778
Dow Target 5--January Series
Subaccount 9,053,323 10,353,471 16,662,993 7,350,304
Dow Target 10--January Series
Subaccount 5,468,808 6,739,477 11,936,647 1,317,414
</TABLE>
Net unrealized appreciation (depreciation) of investments at June 30, 2000 was
composed of the following:
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized Net Unrealized
Appreciation (Depreciation) (Depreciation)
------------ -------------- --------------
<S> <C> <C> <C>
Dow Target 5--July Series
Subaccount $ -- $(3,165,776) $(3,165,776)
Dow Target 10--July Series
Subaccount 50,052 (2,365,722) (2,315,670)
Dow Target 5--January Series
Subaccount 208,755 (880,615) (671,860)
Dow Target 10--January Series
Subaccount 119,711 (1,547,904) (1,428,193)
</TABLE>
4. Contract Owners' Equity
A summary of deferred annuity contracts terminable by owners at June 30, 2000
follows:
<TABLE>
<CAPTION>
5% Annually Compounding Death Benefit
Return of Premium Death Benefit or Annual Step-Up Death Benefit
------------------------------------------ -----------------------------------------
Accumulation Accumulation Total Accumulation Accumulation Total
Units Owned Unit Value Contract Value Units Owned Unit Value Contract Value
--------------------------- -------------- ------------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
Dow Target 5 July Series Subaccount:
PFL Endeavor Variable
Annuity 2,862,038.436 $0.875351 $2,505,288 4,134,554.008 $0.8727600 $3,608,473
PFL ML Endeavor
Variable Annuity 278,439.990 0.875351 243,733 1,399,004.123 0.8727600 1,220,995
Platinum Endeavor
Variable Annuity 1,017,303.083 0.873633 888,750 3,294,499.403 0.8710500 2,869,674
---------- ----------
$3,637,771 $7,699,142
========== ==========
Dow Target 10 July Series Subaccount:
PFL Endeavor Variable
Annuity 1,861,983.658 $0.896736 $1,669,708 3,494,283.766 $0.8940840 $3,124,183
PFL ML Endeavor
Variable Annuity 664,706.095 0.896736 596,066 3,590,115.910 0.8940840 3,209,865
Platinum Endeavor
Variable Annuity 514,873.996 0.894966 460,795 2,915,663.574 0.8923210 2,601,708
---------- ----------
$2,726,569 $8,935,756
========== ==========
Dow Target 5 January Series
Subaccount:
PFL Endeavor Variable
Annuity 1,680,781.172 $0.755222 $1,269,363 2,119,960.155 $0.7535630 $1,597,524
PFL ML Endeavor
Variable Annuity 102,556.923 0.755222 77,453 1,073,826.094 0.7535630 809,196
Platinum Endeavor
Variable Annuity 676,063.032 0.754113 509,828 1,605,807.138 0.7524630 1,208,310
---------- ----------
$1,856,644 $3,615,030
========== ==========
Dow Target 10 January Series
Subaccount:
PFL Endeavor Variable
Annuity 1,619,627.497 $0.823795 $1,334,241 2,322,316.042 $0.8219800 $1,908,897
PFL ML Endeavor
Variable Annuity 381,188.347 0.823795 314,021 2,434,064.081 0.8219800 2,000,752
Platinum Endeavor
Variable Annuity 379,210.659 0.822581 311,931 1,705,667.533 0.8207750 1,399,969
---------- ----------
$1,960,193 $5,309,618
========== ==========
</TABLE>
-12-
<PAGE>
Notes to Financial Statements
PFL Endeavor Target Account
June 30, 2000 (Unaudited)
4.Contract Owners' Equity (continued)
A summary of changes in contract owners' account units follows
<TABLE>
<CAPTION>
Dow Target 5 Dow Target 10 Dow Target 5 Dow Target 10
July Series July Series January Series January Series
Subaccount Subaccount Subaccount Subaccount
------------ ------------- -------------- --------------
<S> <C> <C> <C> <C>
Units outstanding--Janu-
ary 1, 1999 12,713,886 9,891,569 -- --
Units purchased 5,700,605 5,395,476 6,590,696 7,280,357
Units redeemed and
transferred (648,036) 1,020,008 2,453,693 3,452,418
---------- ---------- ---------- ----------
Units outstanding Decem-
ber 31, 1999 17,766,455 16,307,053 9,044,389 10,732,775
Units purchased 254,166 276,889 648,251 641,796
Units redeemed and
transferred (5,034,782) (3,542,315) (2,433,646) (2,532,497)
---------- ---------- ---------- ----------
Units outstanding June
30, 2000 12,985,839 13,041,627 7,258,994 8,842,074
========== ========== ========== ==========
</TABLE>
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