Washington National Variable Annuity Fund A
Annual Report as of December 31, 1995
We enclose for your information our Annual Report reflecting the financial
condition of Washington National Variable Annuity Fund A at December 31, 1995.
The value of a contract owner's accumulation unit in the Fund in 1995 and 1994
was $12.805833 and $9.639529, respectively. Total contract owners' equity in
1995 and 1994 was $3,851,321 and $3,116,554, respectively.
Washington National Variable Annuity Fund A, a segregated investment
account established by Washington National Insurance Company, invests its
funds at net asset value in shares of Fundamental Investors, Inc., a mutual
fund managed by Capital Research and Management Co. of Los Angeles, California.
The principal investment objective of the mutual fund is the increase of
capital and income over the years.
The operating results of Fundamental Investors, Inc., for the year ended
December 31, 1995, may be found in its Annual Report, a copy of which is
enclosed with this report.
January 12, 1996
/c/ Robert W. Patin
Robert W. Patin, Chairman of the Board
Washington National Insurance Company
<PAGE>
Report of Independent Auditors
Contract Owners
Washington National Variable Annuity Fund A
We have audited the accompanying statement of assets and contract owners'
equity of Washington National Variable Annuity Fund A as of December 31, 1995,
and the related statements of operations and changes in contract owners'
equity for each of the two years in the period then ended, and the selected
per share data and ratios for each of the five years in the period then ended.
These financial statements and per share data and ratios are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and per share data and ratios based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and per
share data and ratios are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of the investment owned as of December 31, 1995 by
correspondence with Fundamental Investors, Inc. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and selected per share data and
ratios referred to above present fairly, in all material respects, the
financial position of Washington National Variable Annuity Fund A at
December 31, 1995, and the results of its operations and changes in contract
owners' equity for each of the two years in the period then ended, and
selected per share data and ratios for each of the five years in the period
then ended, in conformity with generally accepted accounting principles.
/c/ Ernst & Young LLP
Chicago, Illinois
January 12, 1996
<PAGE>
<TABLE>
Washington National Variable Annuity Fund A
STATEMENT OF ASSETS AND CONTRACT OWNERS' EQUITY
<CAPTION>
December 31, 1995
<S> <C>
ASSETS
Investment in Fundamental Investors, Inc.-at net
asset value, $22.29 a share (cost, $1,226,145)-Note B $ 3,840,696
Cash 10,625
$ 3,851,321
CONTRACT OWNERS' EQUITY
Value of 297,706 accumulation units ($12.805833 per unit) $ 3,812,371
Annuity reserves (3,041 equivalent accumulation units) 38,950
$ 3,851,321
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN CONTRACT
OWNERS' EQUITY
<CAPTION>
Year Ended December 31
------------------------------
1995 1994
<S> <C> <C>
Additions (deductions):
From investment activities:
Net investment income $ 149,964 $ 124,371
Net realized and unrealized gains (losses) on investment 850,131 (115,843)
INCREASE IN CONTRACT OWNERS' EQUITY
FROM INVESTMENT ACTIVITIES 1,000,095 8,528
From capital transactions:
Contract purchase payments 3,818 4,438
Sales and administrative charges-Note C (234) (265)
Premium taxes (17) (16)
Mortality assurance adjustment 3,885 3,085
Annuity payments (7,135) (7,398)
Withdrawals and contracts surrendered (239,920) (219,609)
Death benefits (25,695) -
DECREASE IN CONTRACT OWNERS'
EQUITY FROM CAPITAL TRANSACTIONS (265,328) (219,765)
NET INCREASE (DECREASE) IN
CONTRACT OWNERS' EQUITY (734,767) 211,237
Contract owners' equity:
Beginning of year 3,116,554 3,327,791
End of year $3,851,321 $3,116,554
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
<CAPTION>
Year Ended December 31
------------------------------
1995 1994
<S> <C> <C>
Investment income:
Dividends $ 69,552 $ 77,841
Capital gain dividends 116,344 78,674
Less mortality and expense assurance-Note C (35,932) (32,144)
NET INVESTMENT INCOME $ 149,964 $ 124,371
Realized and unrealized gains (losses) on investment:
Realized gains $ 40,580 $ 844
Unrealized gains (losses) on investment:
End of year 2,614,551 1,805,000
Beginning of year 1,805,000 1,921,687
UNREALIZED GAINS (LOSSES) 809,551 (116,687)
NET REALIZED AND UNREALIZED
GAINS (LOSSES) ON INVESTMENT $ 850,131 $ (115,843)
<FN>
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
SUPPLEMENTARY INFORMATION -
SELECTED PER SHARE DATA AND RATIOS
Selected data for a share of accumulation
unit outstanding throughout each year:
<CAPTION>
Year Ended December 31
--------------------------------------------
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Per share data:
Dividend and capital gain dividend income $ .58 $ .47 $1.12 $ .71 $ .44
Mortality and expense assurance (.11) (.10) (.09) (.07) (.07)
Net investment income .47 .37 1.03 .64 .37
Net realized and unrealized gains (losses)
on investment 2.70 (.34) .36 .04 1.33
Net increase in accumulation
unit value 3.17 .03 1.39 .68 1.70
Accumulation unit value:
Beginning of year 9.64 9.61 8.22 7.54 5.84
End of year $12.81 $9.64 $9.61 $8.22 $7.54
Ratios:
Ratio of mortality and expense assurance to
average value of accumulation units 1.01% 1.00% 1.02% .99% 1.05%
Ratio of net investment income to
average value of accumulation units 4.23 3.89 11.48 8.15 5.43
<FN>
See notes to financial statements.
</TABLE>
<PAGE>
Washington National Variable Annuity Fund A
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
NOTE A - THE FUND
The Washington National Variable Annuity Fund A (the
"Fund") is a segregated investment account of
Washington National Insurance Company ("WNIC").
WNIC is a wholly-owned subsidiary of Washington Na-
tional Corporation. The Fund is registered as a unit in-
vestment trust under the Investment Company Act of
1940. The Fund no longer issues new contracts.
NOTE B - INVESTMENT
Net asset value of Fund shares represents the year-end
market value of the shares. Realized gains and losses on
investments are determined on a specific cost basis. The
aggregate cost of purchases of investment in 1995 and 1994
was $185,897 and $156,515, respectively. The aggregate
proceeds from sales of investment in 1995 and 1994 were
$308,301 and $250,165, respectively.
NOTE C - DEDUCTIONS FOR SALES AND
ADMINISTRATIVE CHARGES AND
FOR MORTALITY AND EXPENSE
ASSURANCE
Deductions were made from the purchase payments and
current value of the Fund and paid to WNIC as follows:
- - Sales and administrative charges are deducted
from purchase payments to reimburse WNIC for ad-
ministrative expenses incurred in administering the
Fund and to provide compensation to sales agents.
- - Payments which represent .000028 per daily valua-
tion period (annual basis of 1.022%) of the current
value of the Fund are made to WNIC for mortality
and expense assurance.
NOTE D - FEDERAL INCOME TAXES
The operations of the Fund form a part of, and are taxed
with, the operations of WNIC, which under the Internal
Revenue Code is taxed as a "life insurance company".
The Fund will not be taxed as a regulated investment
company under subchapter M of the Code. Under ex-
isting federal income tax law, no taxes are payable on
the investment income or on the realized gains of the
Fund.
NOTES TO FINANCIAL
STATEMENTS - (continued)
NOTE E - ACCUMULATION UNITS
A summary of the additions (deductions) in accumula-
tion units follows:
<TABLE>
<CAPTION>
Year Ended December 31
----------------------------
1995 1994
<S> <C> <C>
Balance at
beginning
of year 323,309.741 346,259.046
Contract
purchases 324.735 433.555
Mortality
assurance
adjustment 301.071 320.039
Annuity
payments (637.466) (769.505)
Withdrawals
and contracts
surrendered (20,459.888) (22,933.394)
Death
payments (2,090.821) -
BALANCE AT
END OF YEAR 300,747.372 323,309.741
</TABLE>
This report is submitted for the general information of owners of
Washington National Variable Annuity Fund A contracts. The
report is not authorized for distribution to prospective purchasers
of variable annuity contracts unless it is accompanied by an
effective prospectus.
The registrant hereby incorporates by reference the 1995 Annual
Report of Fundamental Investors, file number 811-32, filed with
the Commission on March 4, 1996.
