<PAGE>
20 Washington Avenue South - Minneapolis, Minnesota 55401
[LOGO]
NORTHWESTERN NATIONAL LIFE INSURANCE COMPANY
MFS/NWNL VARIABLE ACCOUNT
SEMI-ANNUAL REPORT
FOR THE PERIOD ENDED
JUNE 30, 1995
(UNAUDITED)
This report has been prepared to provide information to owners of MFS/NWNL
Variable Account Contracts. If it is used for any other purpose, it must be
accompanied or preceded by a current MFS/NWNL Variable Account Prospectus
which discloses any charges and other important information about the
Account, together with the current Prospectuses for the underlying Funds.
<PAGE>
MFS/NWNL VARIABLE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1995
(In Thousands, Except Share and Unit Data)
(UNAUDITED)
<TABLE>
<CAPTION>
MASSACHUSETTS
MASSACHUSETTS INVESTORS MFS-REGISTERED
MFS-REGISTERED MFS-REGISTERED INVESTORS GROWTH STOCK TRADEMARK-
TRADEMARK- MONEY TRADEMARK- BOND TRUST FUND RESEARCH FUND
ASSETS: MARKET FUND FUND (CLASS A) (CLASS A) (CLASS A) (CLASS A)
------- ---------------- --------------- ------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Investments in mutual funds at market value:
MFS-Registered Trademark- Money Market Fund
3,689,971 shares (cost $3,690) $3,690
MFS-Registered Trademark- Bond Fund- Class A
120,525 shares (cost $1,635) $1,598
Massachusetts Investors Trust- Class A
101,075 shares (cost $1,256) $1,197
Massachusetts Investors Growth Stock Fund-
Class A 117,987 shares (cost $1,272) $1,317
MFS-Registered Trademark- Research Fund-
Class A 96,766 shares (cost $1,173) $1,366
MFS-Registered Trademark- Total Return Fund-
Class A 258,983 shares (cost $3,266)
MFS-Registered Trademark- Growth Opportunities
Fund- Class A 378,428 shares (cost $4,174)
MFS-Registered Trademark- High Income Fund-
Class A 784,130 shares (cost $3,875)
MFS-Registered Trademark- World Governments
Fund- Class A 65,954 shares (cost $791)
MFS-Registered Trademark- Emerging Growth
Fund- Class A 68,343 shares (cost $1,271)
---------------- --------------- ------------- -------------- --------------
Total Assets $3,690 $1,598 $1,197 $1,317 $1,366
---------------- --------------- ------------- -------------- --------------
---------------- --------------- ------------- -------------- --------------
LIABILITIES AND
CONTRACT OWNERS' EQUITY:
Due to (from) Northwestern National Life
Insurance Company for accrued contract
charges and reserve transfers $4 $2 $1 $2 $1
Contract Owners' Equity 3,686 1,596 1,196 1,315 1,365
---------------- --------------- ------------- -------------- --------------
Total Liabilities and Contract
Owners' Equity $3,690 $1,598 $1,197 $1,317 $1,366
---------------- --------------- ------------- -------------- --------------
---------------- --------------- ------------- -------------- --------------
Units Outstanding: 155,896.902 36,868.929 23,645.812 30,167.577 28,770.759
Net Asset Value per Unit:
Tax Qualified $23.643794 $42.744473 $49.830493 $43.599149 $47.416278
Non-Tax Qualified $23.685545 $41.911848 $48.575334 $42.609087 $49.857670
</TABLE>
The accompanying notes are an integral part of the financial statements.
i
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES, CONTINUED
(UNAUDITED)
<TABLE>
<CAPTION>
MFS MFS
MFS -REGISTERED MFS -REGISTERED MFS
-REGISTERED TRADEMARK- -REGISTERED TRADEMARK- -REGISTERED
TRADEMARK- GROWTH TRADEMARK- WORLD TRADEMARK-
TOTAL OPPORTUNITIES HIGH GOVERNMENTS EMERGING
RETURN FUND FUND INCOME FUND FUND GROWTH FUND
ASSETS: (CLASS A) (CLASS A) (CLASS A) (CLASS A) (CLASS A) TOTAL
------- ------------- ------------ ------------ ------------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
Investments in mutual funds
at market value:
MFS-Registered Trademark-
Money Market Fund
3,689,971 shares
(cost $3,690) $ 3,690
MFS-Registered Trademark-
Bond Fund- Class A
120,525 shares
(cost $1,635) 1,598
Massachusetts Investors Trust-
Class A 101,075 shares
(cost $1,256) 1,197
Massachusetts Investors
Growth Stock Fund-
Class A 117,987 shares
(cost $1,272) 1,317
MFS-Registered Trademark-
Research Fund-
Class A 96,766 shares
(cost $1,173) 1,366
MFS-Registered Trademark-
Total Return Fund-
Class A 258,983 shares
(cost $3,266) $3,587 3,587
MFS-Registered Trademark-
Growth Opportunities Fund-
Class A 378,428 shares
(cost $4,174) $4,616 4,616
MFS-Registered Trademark-
High Income Fund-
Class A 784,130 shares
(cost $3,875) $3,983 3,983
MFS-Registered Trademark-
World Governments Fund-
Class A 65,954 shares
(cost $791) $807 807
MFS-Registered Trademark-
Emerging Growth Fund-
Class A 68,343 shares
(cost $1,271) $1,512 1,512
------------- ------------ ------------ ------------- ---------- --------
Total Assets $3,587 $4,616 $3,983 $807 $1,512 $23,673
------------- ------------ ------------ ------------- ---------- --------
------------- ------------ ------------ ------------- ---------- --------
LIABILITIES AND
CONTRACT OWNERS' EQUITY:
Due to (from) Northwestern National
Life Insurance Company for
accrued contract charges and
reserve transfers $4 $7 $4 $2 $3 $30
Contract Owners' Equity 3,583 4,609 3,979 805 1,509 23,643
------------- ------------ ------------ ------------- ---------- -------
Total Liabilities and
Contract Owners' Equity $3,587 $4,616 $3,983 $807 $1,512 $23,673
------------- ------------ ------------ ------------- ---------- -------
------------- ------------ ------------ ------------- ---------- -------
Units Outstanding: 68,409.732 101,249.301 87,992.608 16,577.304 36,411.965 585,990.889
Net Asset Value per Unit:
Tax Qualified $52.380020 $44.766821 $45.183313 $46.770075 $41.454836
Non-Tax Qualified $52.520109 $40.772525 $45.617069 $46.799902 $41.454836
</TABLE>
The accompanying notes are an integral part of the financial statements.
ii
<PAGE>
MFS/NWNL VARIABLE ACCOUNT STATEMENT OF OPERATIONS
AND CHANGES IN CONTRACT OWNERS' EQUITY
(In Thousands of Dollars)
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED YEAR ENDED
ENDED DEC. 31, DEC. 31,
JUNE 30, 1995 1994 1993
------------- ---------- ----------
<S> <C> <C> <C>
Net investment income:
Reinvested dividend income..................... $433 $844 $1,289
Reinvested capital gains....................... - 751 1,347
Administrative expenses........................ (168) (365) (407)
------------- ---------- ----------
Net investment income and capital gains..... 265 1,230 2,229
------------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains on securities transactions.. 153 268 774
Increase (decrease) in unrealized appreciation
of investments............................... 2,316 (2,242) 209
------------- ---------- ----------
Net realized and unrealized gains (losses) 2,469 (1,974) 983
------------- ---------- ----------
Additions (reductions) from operations 2,734 (744) 3,212
------------- ---------- ----------
Contract Owners' transactions:
Net purchase payments......................... 221 492 661
Surrenders.................................... (2,405) (3,049) (4,598)
Annuity payments.............................. (174) (54) (24)
Transfers to (from) required reserves......... (2) (18) 2
------------- ---------- ----------
Reductions for Contract Owners' transactions (2,360) (2,629) (3,959)
------------- ---------- ----------
Net additions (reductions) for the period 374 (3,373) (747)
Contract Owners' Equity, beginning of the year....... 23,269 26,642 27,389
------------- ---------- ----------
Contract Owners' Equity, end of the period........... $23,643 $23,269 $26,642
------------- ---------- ----------
------------- ---------- ----------
</TABLE>
The accompanying notes are integral part of the financial statements.
iii
<PAGE>
MFS/NWNL VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ORGANIZATION AND CONTRACTS:
MFS/NWNL Variable Account (the "Account") is a separate account of
Northwestern National Life Insurance Company ("NWNL"), a wholly owned
subsidiary of The ReliaStar Financial Corp. (formerly The NWNL Companies,
Inc.). The Account is registered as a unit investment trust under the
Investment Company Act of 1940.
Purchase payments received under the contracts are allocated to
Sub-Accounts of the Account, each of which invested in one of
the following Funds during the period.
<TABLE>
<CAPTION>
Prior Name Current Name
---------- ------------
<S> <C>
Massachusetts Cash Management - Prime Series MFS-Registered Trademark- Money Market Fund (Class A)
Massachusetts Financial Bond Fund MFS-Registered Trademark- Bond Fund (Class A)
Massachusetts Investors Trust Massachusetts Investors Trust (Class A)
Massachusetts Investors Growth Stock Fund Massachusetts Investors Growth Stock Fund (Class A)
Massachusetts Financial Development Fund MFS-Registered Trademark- Research Fund (Class A)
Massachusetts Financial Total Return Trust MFS-Registered Trademark- Total Return Fund (Class A)
MFS-Registered Trademark- Capital Development Fund MFS-Registered Trademark- Growth Opportunities Fund (Class A)
Massachusetts Financial High Income - Series I MFS-Registered Trademark- High Income Fund (Class A)
MFS-Registered Trademark- Worldwide Governments Fund MFS-Registered Trademark- World Governments Fund (Class A)
Massachusetts Financial Emerging Growth Fund MFS-Registered Trademark- Emerging Growth Fund (Class A)
</TABLE>
SECURITIES VALUATION TRANSACTIONS:
The market value of investments in the Sub-Accounts is based on the
closing net asset values of the Fund shares held at the end of the
period. Investment transactions are accounted for on the trade date (date
the order to purchase or redeem is executed) and dividend income and
capital gain distributions are recorded on the ex-dividend date. Net
realized gains and losses on redemptions of shares of the Funds are
determined on the basis of specific identification of Fund share costs.
VARIABLE ANNUITY RESERVES:
The amount of the reserves for contracts in the distribution period is
determined by actuarial assumptions which meet statutory requirements.
Gains or losses resulting from actual mortality experience, the full
responsibility for which is assumed by NWNL, are offset by transfers to,
or from, NWNL.
2. FEDERAL INCOME TAXES:
The MFS/NWNL Variable Account has not provided for income taxes because
in 1981 the Internal Revenue Service issued Revenue Ruling 81-225, which
holds, in part, that for certain types of variable annuity contracts, the
Contract Owner is considered the owner of the underlying mutual fund
shares for federal income tax purposes and any earnings and/or gains from
the shares are included in the gross income of the Contract Owner. The
Ruling requires that all long-term realized gains or losses on nontax
qualified accounts be reported to the Contract Owners'.
3. CONTRACT CHARGES:
No deduction is made for a sales charge from the purchase payments made
for the contracts. However, on certain surrenders, NWNL will deduct from
the contract value a surrender charge as set forth in the contract.
Charges by NWNL on the contracts include: (a) an annual administrative
charge of $30 from each contract on the anniversary date or at the time
of surrender if other than the anniversary date and (b) a charge for
mortality and expense risk assumed by NWNL equal to an annual rate of
0.9% and 0.4%, respectively, of each participant's account. NWNL bears
the risk of adverse mortality experience and any costs for sales and
administrative services and expenses which exceed the periodic charge.
Various states and other governmental units levy a premium tax on annuity
contracts issued by insurance companies. If the owner of a contract lives
in a state which levies such a tax, NWNL may deduct the amount of the tax
from the purchase payments received or the value of the contract at
annuitization.
iv
<PAGE>
MFS/NWNL VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
4. INVESTMENTS:
The net realized gains (losses) on redemptions of fund shares for the six
months ended June 30, 1995 and the years ended December 31, 1994 and 1993
were as follows, (in thousands):
<TABLE>
<CAPTION>
TOTAL MFS-REGISTERED TRADEMARK- MONEY MARKET FUND
----------------------------------------- --------------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED SIX MONTHS YEAR ENDED YEAR ENDED
ENDED DEC. 31, DEC. 31, ENDED DEC. 31, DEC. 31,
JUNE 30, 1995 1994 1993 JUNE 30, 1995 1994 1993
------------- ----------- ----------- ------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.... $3,892 $12,719 $9,252 $956 $4,904 $3,004
Cost......................... 3,739 12,451 8,478 956 4,904 3,004
------------- ----------- ----------- ------------- ----------- ----------
Net realized gains (losses)
on redemptions of fund
shares.................... $ 153 $ 268 $ 774 $ -- $ -- $ --
------------- ----------- ----------- ------------- ----------- ----------
------------- ----------- ----------- ------------- ----------- ----------
</TABLE>
<TABLE>
<CAPTION>
MASSACHUSETTS INVESTORS
GROWTH STOCK FUND MFS-REGISTERED TRADEMARK-
(CLASS A) RESEARCH FUND (CLASS A)
----------------------------------------- --------------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED SIX MONTHS YEAR ENDED YEAR ENDED
ENDED DEC. 31, DEC. 31, ENDED DEC. 31, DEC. 31,
JUNE 30, 1995 1994 1993 JUNE 30, 1995 1994 1993
------------- ----------- ----------- ------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.... $ 186 $ 226 $ 442 $290 $ 273 $ 104
Cost......................... 171 201 301 257 214 76
------------- ----------- ----------- ------------- ----------- ----------
Net realized gains (losses)
on redemptions of fund
shares.................... $ 15 $ 25 $ 141 $ 33 $ 59 $ 28
------------- ----------- ----------- ------------- ----------- ----------
------------- ----------- ----------- ------------- ----------- ----------
</TABLE>
<TABLE>
<CAPTION>
MFS-REGISTERED TRADEMARK-
MFS-REGISTERED TRADEMARK- WORLD GOVERNMENTS FUND
HIGH INCOME FUND (CLASS A) (CLASS A)
----------------------------------------- --------------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED SIX MONTHS YEAR ENDED YEAR ENDED
ENDED DEC. 31, DEC. 31, ENDED DEC. 31, DEC. 31,
JUNE 30, 1995 1994 1993 JUNE 30, 1995 1994 1993
------------- ----------- ----------- ------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.... $ 636 $ 4,304 $ 1,803 $ 74 $ 354 $ 124
Cost......................... 681 4,196 1,536 79 379 111
------------- ----------- ----------- ------------- ----------- ----------
Net realized gains (losses)
on redemptions of fund
shares.................... ($45) $ 108 $ 267 ($5) ($25) $ 13
------------- ----------- ----------- ------------- ----------- ----------
------------- ----------- ----------- ------------- ----------- ----------
</TABLE>
v
<PAGE>
MFS/NWNL VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
<TABLE>
<CAPTION>
MFS-REGISTERED TRADEMARK- MASSACHUSETTS INVESTORS TRUST
BOND FUND (CLASS A) (CLASS A)
----------------------------------------- --------------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED SIX MONTHS YEAR ENDED YEAR ENDED
ENDED DEC. 31, DEC. 31, ENDED DEC. 31, DEC. 31,
JUNE 30, 1995 1994 1993 JUNE 30, 1995 1994 1993
------------- ----------- ----------- ------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.... $191 $ 682 $ 382 $105 $157 $ 207
Cost......................... 204 705 335 126 182 220
------------- ----------- ----------- ------------- ----------- ----------
Net realized gains (losses)
on redemptions of fund
shares.................... ($13) ($23) $ 47 ($21) ($25) ($13)
------------- ----------- ----------- ------------- ----------- ----------
------------- ----------- ----------- ------------- ----------- ----------
</TABLE>
<TABLE>
<CAPTION>
MFS-REGISTERED TRADEMARK-
MFS-REGISTERED TRADEMARK- GROWTH OPPORTUNITIES FUND
TOTAL RETURN FUND (CLASS A) (CLASS A)
----------------------------------------- --------------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED SIX MONTHS YEAR ENDED YEAR ENDED
ENDED DEC. 31, DEC. 31, ENDED DEC. 31, DEC. 31,
JUNE 30, 1995 1994 1993 JUNE 30, 1995 1994 1993
------------- ----------- ----------- ------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.... $680 $1,031 $1,300 $542 $586 $1,201
Cost......................... 563 901 1,081 476 557 1,111
------------- ----------- ----------- ------------- ----------- ----------
Net realized gains (losses)
on redemptions of fund
shares.................... $117 $ 130 $ 219 $ 66 $ 29 $ 90
------------- ----------- ----------- ------------- ----------- ----------
------------- ----------- ----------- ------------- ----------- ----------
</TABLE>
<TABLE>
<CAPTION>
MFS-REGISTERED TRADEMARK-
EMERGING GROWTH FUND (CLASS A)
-----------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED
ENDED DEC. 31, DEC. 31,
JUNE 30, 1995 1994 1993
------------- ----------- -----------
<S> <C> <C> <C>
Proceeds from redemptions.... $232 $ 202 $ 685
Cost......................... 226 212 703
------------- ----------- -----------
Net realized gains (losses)
on redemptions of fund
shares.................... $ 6 ($10) ($18)
------------- ----------- -----------
------------- ----------- -----------
</TABLE>
vi
<PAGE>
MFS/NWNL VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
5. CONTRACT OWNERS' TRANSACTIONS:
Unit transactions in each Sub-Account for the six months ended June 30, 1995
and the years ended December 31, 1994 and 1993 were as follows:
<TABLE>
<CAPTION>
MFS-Registered Trademark-
MFS-Registered Trademark- BOND FUND
MONEY MARKET FUND (CLASS A)
---------------------------------------- ----------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED SIX MONTHS YEAR ENDED YEAR ENDED
ENDED DEC. 31, DEC. 31, ENDED DEC. 31, DEC. 31,
JUNE 30, 1995 1994 1993 JUNE 30, 1995 1994 1993
------------- ----------- ----------- ------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding, beginning of
the year........................... 167,242.251 175,814.541 249,359.321 40,693.896 50,303.756 50,761.189
Units purchased........................ 1,935.670 3,150.590 4,421.159 279.770 550.518 471.219
Units redeemed......................... (24,558.190) (41,227.550) (68,847.244) (4,101.810) (4,984.507) (3,803.303)
Units transferred between Sub-Accounts 11,277.171 29,504.670 (9,118.695) (2.927) (5,175.871) 2,874.651
------------- ----------- ----------- ------------- ---------- ----------
Units outstanding, end of the period... 155,896.902 167,242.251 175,814.541 36,868.929 40,693.896 50,303.756
------------- ----------- ----------- ------------- ---------- ----------
------------- ----------- ----------- ------------- ---------- ----------
</TABLE>
<TABLE>
<CAPTION>
MFS-Registered Trademark-
MFS-Registered Trademark- GROWTH OPPORTUNITIES
TOTAL RETURN FUND FUND
(CLASS A) (CLASS A)
---------------------------------------- ----------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED SIX MONTHS YEAR ENDED YEAR ENDED
ENDED DEC. 31, DEC. 31, ENDED DEC. 31, DEC. 31,
JUNE 30, 1995 1994 1993 JUNE 30, 1995 1994 1993
------------- ----------- ----------- ------------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding, beginning of
the year............................ 81,547.990 89,906.122 101,079.955 111,725.962 120,705.939 143,744.403
Units purchased......................... 887.930 2,564.594 4,026.884 810.020 1,677.949 1,916.269
Units redeemed.......................... (9,623.040) (13,630.791) (21,200.524) (11,416.790) (9,521.122) (16,522.653)
Units transferred between Sub-Accounts.. (4,403.148) 2,708.065 5,999.807 130.109 (1,136.804) (8,432.080)
------------- ----------- ----------- ------------- ----------- -----------
Units outstanding, end of the period.... 68,409.732 81,547.990 89,906.122 101,249.301 111,725.962 120,705.939
------------- ----------- ----------- ------------- ----------- -----------
------------- ----------- ----------- ------------- ----------- -----------
</TABLE>
vii
<PAGE>
MFS/NWNL VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
<TABLE>
<CAPTION>
MASSACHUSETTS
MASSACHUSETTS INVESTORS GROWTH
INVESTORS TRUST STOCK FUND
(CLASS A) (CLASS A)
----------------------------------------- ----------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED SIX MONTHS YEAR ENDED YEAR ENDED
ENDED DEC. 31, DEC. 31, ENDED DEC.31, DEC. 31,
JUNE 30, 1995 1994 1993 JUNE 30, 1995 1994 1993
------------- ----------- ----------- ------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding, beginning of
the year............................ 24,462.931 26,534.206 28,801.024 34,032.392 37,169.634 46,078.868
Units purchased......................... 501.130 764.201 2,229.713 449.870 837.386 1,317.191
Units redeemed.......................... (927.070) (1,997.585) (2,354.560) (3,131.420) (4,276.482) (7,653.972)
Units transferred between Sub-Accounts.. (391.179) (837.891) (2,141.971) (1,183.265) 301.854 (2,572.453)
------------- ----------- ----------- ------------- ----------- -----------
Units outstanding, end of the period.... 23,645.812 24,462.931 26,534.206 30,167.577 34,032.392 37,169.634
------------- ----------- ----------- ------------- ----------- -----------
------------- ----------- ----------- ------------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
MFS-Registered Trademark- MFS-Registered Trademark-
RESEARCH FUND HIGH INCOME FUND
(CLASS A) (CLASS A)
---------------------------------------- ----------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED SIX MONTHS YEAR ENDED YEAR ENDED
ENDED DEC. 31, DEC. 31, ENDED DEC. 31, DEC. 31,
JUNE 30, 1995 1994 1993 JUNE 30, 1995 1994 1993
------------- ----------- ----------- ------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding, beginning of
the year............................ 35,069.784 32,935.954 33,965.652 95,772.845 120,857.156 134,205.074
Units purchased......................... 221.200 439.089 612.508 243.550 1,627.949 1,824.158
Units redeemed.......................... (3,158.590) (3,194.020) (2,167.924) (12,128.080) (21,586.502) (17,638.627)
Units transferred between Sub-Accounts.. (3,361.635) 4,888.761 525.718 1,740.261 (2,435.424) 2,987.592
------------- ----------- ----------- ------------ ----------- -----------
Units outstanding, end of the period.... 28,770.759 35,069.784 32,935.954 87,992.608 95,772.845 120,857.156
------------- ----------- ----------- ------------ ----------- -----------
------------- ----------- ----------- ------------ ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
MFS-Registered Trademark- MFS-Registered Trademark-
WORLD GOVERNMENTS EMERGING GROWTH
FUND FUND
(CLASS A) (CLASS A)
---------------------------------------- ----------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED SIX MONTHS YEAR ENDED YEAR ENDED
ENDED DEC.31, DEC. 31 ENDED DEC. 31, DEC. 31,
JUNE 30, 1995 1994 1993 JUNE 30, 1995 1994 1993
------------- ----------- --------- ------------- ----------- -----------
<C> <C> <C> <C> <C> <C>
Units outstanding, beginning of
the year............................ 15,677.993 20,279.064 17,835.352 39,191.298 34,652.403 36,879.705
Units purchased......................... 77.740 254.406 302.815 603.450 1,145.168 1,297.358
Units redeemed.......................... (918.690) (2,420.053) (846.695) (671.010) (2,853.696) (8,941.467)
Units transferred between Sub-Accounts.. 1,740.261 (2,435.424) (2,987.592) (2,711.773) 6,247.423 5,416.807
---------- ----------- ----------- ----------- ----------- ----------
Units outstanding, end of the period.... 16,577.304 15,677.993 20,279.064 36,411.965 39,191.298 34,652.403
---------- ----------- ----------- ----------- ----------- ----------
---------- ----------- ----------- ----------- ----------- ----------
</TABLE>
viii
<PAGE>
MFS/NWNL VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
6. STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY.
Operations and changes in Contract Owners' equity for the six months ended
June 30, 1995 were as follows, (in thousands):
<TABLE>
<CAPTION>
MFS MFS MASSACHUSETTS
-Registered -Registered MASSACHUSETTS INVESTORS
Trademark- Trademark- INVESTORS GROWTH STOCK
MONEY MARKET BOND FUND TRUST FUND
TOTAL FUND (CLASS A) (CLASS A) (CLASS A)
------- ------------ ---------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net investment income:
Reinvested dividend income................. $ 433 $ 96 $ 60 $ 13 $ --
Reinvested capital gains................... -- -- -- -- --
Administrative expenses.................... (168) (27) (11) (8) (9)
------- ------ ------ ------ -----
Net investment income and capital gains. $ 265 $ 69 $ 49 $ 5 $ (9)
------- ------ ------ ------ -----
Realized and unrealized gains (losses):
Net realized gains (losses) on fund
share redemptions........................ 153 -- (13) (21) 15
Increase in unrealized appreciation
of investments........................... 2,316 -- 153 203 186
------- ------ ------ ------ -----
Net realized and unrealized gains........ 2,469 -- 140 182 201
------- ------ ------ ------ -----
Net additions from operations............ 2,734 69 189 187 192
------- ------ ------ ------ -----
Contract Owners' transactions:
Net purchase payments...................... 221 46 11 23 15
Surrenders................................. (2,405) (481) (87) (42) (125)
Transfers between Sub-Accounts............. -- 264 -- (19) (46)
Annuity payments........................... (174) (90) (77) (1) --
Transfers from required reserves........... (2) -- -- -- --
------- ------ ------ ------ -----
Net (reductions) additions for
Contract Owners' transactions.......... (2,360) (261) (153) (39) (156)
------- ------ ------ ------ -----
Net additions (reductions) for
the period......................... 374 (192) 36 148 36
Contract Owners' Equity, beginning of the
year....................................... 23,269 3,878 1,560 1,048 1,279
------- ------ ------ ------ -----
Contract Owners' Equity, end of the period... $23,643 $3,686 $1,596 $1,196 $1,315
------- ------ ------ ------ -----
------- ------ ------ ------ -----
</TABLE>
ix
<PAGE>
MFS/NWNL VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
<TABLE>
<CAPTION>
MFS MFS
MFS MFS -Registered MFS -Registered MFS
-Registered -Registered Trademark- -Registered Trademark- -Registered
Trademark - Trademark- CAPITAL Trademark- WORLDWIDE Trademark-
RESEARCH TOTAL RETURN DEVELOPMENT HIGH INCOME GOVERNMENTS EMERGING
FUND FUND FUND FUND FUND GROWTH FUND
(CLASS A) (CLASS A) (CLASS A) (CLASS A) (CLASS A) (CLASS A)
---------- ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income:
Reinvested dividend
income.................. $ -- $ 86 $ -- $ 178 $ -- $ --
Reinvested capital
gains................... -- -- -- -- -- --
Administrative
expenses................ (10) (26) (33) (29) (5) (10)
------ ------ ------ ------ ---- ------
Net investment income
and capital gains.... $ (10) $ 60 $ (33) $ 149 $(5) $ (10)
------ ------ ------ ------ ---- ------
Realized and unrealized
gains (losses):
Net realized gains (losses)
on fund share
redemptions............. 33 117 66 (45) (5) 6
Increase in unrealized
appreciation of
investments............. 187 274 748 258 88 219
------ ------ ------ ------ ---- ------
Net realized and
unrealized gains.... 220 391 814 213 83 225
------ ------ ------ ------ ---- ------
Net additions from
operations.......... 210 451 781 362 78 215
------ ------ ------ ------ ---- ------
Contract Owners' transactions:
Net purchase payments... 11 44 34 13 3 21
Surrenders.............. (138) (467) (470) (530) (41) (24)
Transfers between
Sub-Accounts........... (144) (216) 6 177 80 (102)
Annuity payments........ -- -- (4) -- (2) --
Transfers from required
reserves............... -- -- (1) (1) -- --
------ ------ ------ ------ ---- ------
Net (reductions)
additions for
Contract Owners'
transactions........ (271) (639) (435) (341) 40 (105)
------ ------ ------ ------ ---- ------
Net additions
(reductions) for
the period....... (61) (188) 346 21 118 110
Contract Owners' Equity,
beginning of the year..... 1,426 3,771 4,263 3,958 687 1,399
------ ------ ------ ------ ---- ------
Contract Owners' Equity,
end of the period......... $1,365 $3,583 $4,609 $3,979 $805 $1,509
------ ------ ------ ------ ---- ------
------ ------ ------ ------ ---- ------
</TABLE>
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MFS/NWNL VARIABLE ACCOUNT
[LOGO] 20 WASHINGTON AVENUE SOUTH
MINNEAPOLIS, MINNESOTA 55401
(612) 372-5507
38776h
(Select I)
