Washington National Variable Annuity Fund B
June 30, 1998
Unaudited
Statement of Assets and Contract Owners' Equity 1
Statement of Operations 2
Statement of Changes in Contract Owners' Equity 3
Notes to Financial Statements 4
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<TABLE>
Washington National Variable Annuity Fund B
Statement of Assets and Contract Owners' Equity (Unaudited)
June 30, 1998
<S> <C>
ASSETS
Investment in Fundamental Investors, Inc. - at net asset value,
$30.59 a share (cost $256,045) - Note B $ 1,001,063
Cash 1,669
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$ 1,002,732
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CONTRACT OWNERS' EQUITY
Value of 30,266 accumulation units ($22.513611 per unit) $ 681,401
Annuity reserves (14,273 equivalent accumulation units) 321,331
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$ 1,002,732
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<FN>
See notes to financial statements
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<TABLE>
Washington National Variable Annuity Fund B
Statement of Operations (Unaudited)
Six Months Ended June 30, 1998
<S> <C>
Investment income:
Dividends $ 6,698
Capital gains and distributions 3,753
Less mortality and expense assurance - Note C (5,147)
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NET INVESTMENT INCOME 5,304
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Realized and unrealized gains on investment:
Net realized gains - Note B 5,407
Unrealized gains on investment:
End of year 745,018
Beginning of year 641,015
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NET UNREALIZED GAINS 104,003
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NET REALIZED AND UNREALIZED GAINS
ON INVESTMENT 109,410
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NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 114,714
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<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, 1998
<S> <C>
Additions (deductions) :
From investment activities:
Net investment income $ 5,304
Net realized and unrealized gains on investment 109,410
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INCREASE IN CONTRACT OWNERS' EQUITY
FROM INVESTMENT ACTIVITIES 114,714
From capital transactions:
Annuity payments (30,541)
Withdrawals and contracts surrendered (46,091)
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DECREASE IN CONTRACT OWNERS' EQUITY
FROM CAPITAL TRANSACTIONS (76,632)
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NET INCREASE IN CONTRACT OWNERS' EQUITY 38,082
Contract owners' equity:
Beginning of year 964,650
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End of year $ 1,002,732
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<FN>
See notes to financial statements
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Washington National Variable Annuity Fund B
Notes to Financial Statements
June 30, 1998
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.
On December 5, 1997, Conseco, Inc., a publicly held
specialized financial services holding company, completed
the acquisition of WNC. The merger is not expected to
have any effect on the Fund.
NOTE B - Investment
Investments in portfolio shares are valued using the net
asset value of the Fund at the end of each New York Stock
Exchange business day. Investment share transactions are
accounted for on a trade date basis (the date the order to
purchase or redeem shares is executed) and dividend income
is recorded on the ex-dividend date. The Fund does not hold
any investments which are restricted as to resale.
Net investment income and net realized gains (losses) and
unrealized appreciation (depreciation) on investments are
allocated to the contracts on each valuation date based on
each contract's pro rata share of the assets of the Fund as
of the beginning of the valuation date.
Realized gains and losses on investment are determined on a
specific cost basis. The aggregate cost of purchases of
investments as of June 30, 1998 was $10,451. The aggregate
proceeds from sales of investments as of June 30, 1998 was
$53,628.
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.
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The registrant hereby incorporates by
reference the 1998 Semi-Annual Report
of Fundamental Investors, file number
811-32, filed with the Commission on
September 9, 1998.
