Washington National Variable Annuity Fund B
Semi-Annual Report
as of June 30, 1996
We enclose for your information our Semi-
Annual Report reflecting the financial
condition of Washington National
Variable Annuity Fund B at June 30,
1996. The value of a contract owner's
accumulation unit in the Fund on June
30, 1996 and December 31, 1995 was
$14.423010 and $13.536518, respectively.
Total contract owners' equity during
that same period was $781,936 and
$776,751, respectively.
Washington National Variable Annuity
Fund B, 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 period ended
June 30, 1996 may be found in its Semi-
Annual Report, a copy of which is
enclosed with this report.
August 23, 1996
/c/ Robert W. Patin
Chairman of the Board
Washington National Insurance Company
<PAGE>
<TABLE>
Washington National Variable Annuity Fund B
STATEMENT OF ASSETS AND CONTRACT OWNERS' EQUITY (Unaudited)
<CAPTION>
June 30, 1996
<S> <C>
ASSETS
Investment in Fundamental Investors, Inc. - at net asset value,
$23.49 a share (cost $248,039) - Note B $ 782,347
Cash (overdraft) (411)
$ 781,936
CONTRACT OWNERS' EQUITY
Value of 36,938 accumulation units ($14.423010 per unit) $ 532,756
Annuity reserves (17,277 equivalent accumulation units) 249,180
$ 781,936
</TABLE>
<TABLE>
STATEMENT OF CHANGES IN CONTRACT OWNERS' EQUITY (Unaudited)
<CAPTION>
Period of Six Months Ended June 30, 1996
<S> <C>
Additions (deductions) :
From investment activities:
Net investment income $ 9,950
Net realized and unrealized gain on investment 40,646
INCREASE IN CONTRACT OWNERS' EQUITY
FROM INVESTMENT ACTIVITIES 50,596
From capital transactions:
Annuity payments (21,409)
Withdrawals and contracts surrendered (24,002)
DECREASE IN CONTRACT OWNERS' EQUITY
FROM CAPITAL TRANSACTIONS (45,411)
NET INCREASE IN CONTRACT OWNER'S EQUITY 5,185
Contract owners' equity:
Beginning of year 776,751
End of period $ 781,936
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS (Unaudited)
<CAPTION>
Period of Six Months Ended June 30, 1996
<S> <C>
Investment income:
Dividends $ 6,747
Capital gains dividends 7,135
Less mortality and expense assurance - Note C (3,932)
NET INVESTMENT INCOME $ 9,950
Realized and unrealized gain on investment:
Realized gain - Note B and D $ 773
Unrealized gain on investments:
End of period 534,308
Beginning of year 494,435
UNREALIZED GAIN 39,873
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENT $ 40,646
<FN>
See Notes to Financial Statements
</TABLE>
<PAGE>
Washington National
Variable Annuity
Fund B
Notes to Financial Statements
June 30, 1996
NOTE A - THE FUND
The Washington National Variable Annuity
Fund B (the "Fund") is a segregated
investment account of Washington
National Insurance Company ("WNIC").
WNIC is a wholly-owned subsidiary of
Washington National Corporation. The
Fund is registered as a unit investment
trust under the Investment Company Act
of 1940. The Fund no longer accepts
purchase payments.
NOTE B - INVESTMENT
Net asset value of Fund shares
represents the market value of the
shares as of June 30, 1996.
Realized gains and losses on investment
are determined on a specific cost basis.
NOTE C - DEDUCTIONS FOR MORTALITY AND
EXPENSE ASSURANCE
Deductions were made from the current
value of the Fund and paid to WNIC
representing .000028 per daily valuation
period (annual basis of 1.022%) of the
current value of the Fund 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.
The registrant hereby incorporates by
reference the 1996 Semi-Annual Report
of Fundamental Investors, file number
811-32, filed with the Commission on
September 4, 1996.
