Washington National Variable Annuity Fund B
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
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<TABLE>
Washington National Variable Annuity Fund B
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 $222,485) - Note B $894,770
Cash (overdraft) (38)
$894,732
CONTRACT OWNERS' EQUITY
Value of 31,447 accumulation units ($18.617528 per unit) $585,457
Annuity reserves (16,612 equivalent accumulation units) 309,275
$894,732
<FN>
See notes to financial statements
</TABLE>
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<TABLE>
Washington National Variable Annuity Fund B
Statement of Operations (Unaudited)
Six Months Ended June 30, 1997
<S> <C>
Investment income:
Dividends $ 6,651
Capital gains 11,944
Less mortality and expense assurance - Note C (4,391)
NET INVESTMENT INCOME $ 14,204
Realized and unrealized gains on investment:
Realized gains - Note B $ 5,115
Unrealized gains on investment:
End of year 672,285
Beginning of year 562,645
UNREALIZED GAINS 109,640
NET REALIZED AND UNREALIZED GAINS
ON INVESTMENT $114,755
<FN>
See notes to financial statements
</TABLE>
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<TABLE>
Washington National Variable Annuity Fund B
Statement of Changes in Contract Owners' Equity (Unaudited)
Six Months Ended June 30, 1997
<S> <C>
Additions (deductions) :
From investment activities:
Net investment income $ 14,204
Net realized and unrealized gains on investment 114,755
INCREASE IN CONTRACT OWNERS' EQUITY
FROM INVESTMENT ACTIVITIES 128,959
From capital transactions:
Annuity payments (24,842)
Withdrawals and contracts surrendered (60,507)
Death benefits (8,795)
DECREASE IN CONTRACT OWNERS' EQUITY
FROM CAPITAL TRANSACTIONS (94,144)
NET INCREASE IN CONTRACT OWNERS' EQUITY 34,815
Contract owners' equity:
Beginning of year 859,917
End of year $894,732
<FN>
See notes to financial statements
</TABLE>
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Washington National Variable Annuity Fund B
Notes to Financial Statements
June 30, 1997
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 ("WNC"). The Fund is
registered as a unit investment trust under the Investment
Company Act of 1940. The Fund no longer accepts purchase
payments.
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 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.
<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.
