Washington National Variable Annuity Fund A
June 30, 1997
(Unaudited)
Statement of Assets and Contract Owners' Equity.................See below
Statement of Operations.........................................See below
Statement of Changes in Contract Owners' Equity.................See below
Notes to the Financial Statements...............................See below
<PAGE>
<TABLE>
Washington National Variable Annuity Fund A
Statement of Assets and Contract Owners' Equity (Unaudited)
June 30, 1997
<S> <C>
ASSETS
Investment in Fundamental Investors, Inc. - at net asset value,
$28.05 a share (cost $1,479,873) - Note B $5,121,249
Cash 4,117
$5,125,366
CONTRACT OWNERS' EQUITY
Value of 287,599 accumulation units ($17.662674 per unit) $5,079,775
Annuity reserves (2,581 equivalent accumulation units) 45,591
$5,125,366
<FN>
See notes to financial statements
</TABLE>
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<TABLE>
Washington National Variable Annuity Fund A
Statement of Operations (Unaudited)
Six Months Ended June 30, 1997
<S> <C>
Investment income:
Dividends $ 36,523
Capital gains 63,885
Less mortality and expense assurance - Note C (23,912)
NET INVESTMENT INCOME $ 76,496
Realized and unrealized gains on investment:
Realized gain - Note B $ 1,186
Unrealized gains on investment:
End of year 3,641,376
Beginning of year 3,000,751
UNREALIZED GAINS 640,625
NET REALIZED AND UNREALIZED GAINS
ON INVESTMENT $ 641,811
<FN>
See notes to financial statements
</TABLE>
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<TABLE>
Washington National Variable Annuity Fund A
Statement of Changes in Contract Owners' Equity (Unaudited)
Six Months Ended June 30, 1997
<S> <C>
Additions (deductions) :
From investment activities:
Net investment income $ 76,496
Net realized and unrealized gains on investment 641,811
INCREASE IN CONTRACT OWNERS' EQUITY
FROM INVESTMENT ACTIVITIES 718,307
From capital transactions:
Contract purchase payments 2,259
Sales and administrative charges - Note C (138)
Premium taxes (10)
Annuity payments (4,473)
Withdrawals and contracts surrendered (53,024)
Death benefits (28,375)
DECREASE IN CONTRACT OWNERS' EQUITY
FROM CAPITAL TRANSACTIONS (83,761)
NET INCREASE IN CONTRACT OWNERS' EQUITY 634,546
Contract owners' equity:
Beginning of year 4,490,820
End of year $5,125,366
<FN>
See notes to financial statements
</TABLE>
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Washington National Variable Annuity Fund A
Notes to Financial Statements
June 30, 1997
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 National Corporation ("WNC"). The Fund is
registered as a unit investment trust under the Investment
Company Act of 1940. The Fund no longer issues new
contracts.
In November 1996, WNC announced a definitive agreement to
merge with PennCorp Financial Group, Inc. ("PennCorp"). Under
the terms of the merger, the separate corporate existence of
WNC shall cease and PennCorp shall continue as the surviving
corporation. The merger is anticipated to close during 1997,
pending the receipt of the required shareholder and regulatory
approval. The merger is not expected to have any effect on the Fund.
NOTE B - Investment
Net asset value of Fund shares represents the market value
of the shares as of June 30, 1997. Realized gains and losses
on investment are determined on a specific cost basis.
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
administrative expenses incurred in administering the
Fund and to provide compensation to sales agents.
- - Payments which represent .000028 per daily valuation
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 existing federal
income tax law, no taxes are payable on the investment
income or on the realized gains of the Fund.
<PAGE>
The registrant hereby incorporates by
reference the 1997 Semi-Annual Report
of Fundamental Investors, file number
811-32, filed with the Commission on
September 8, 1997.
