A MESSAGE TO VARIABLE ANNUITY CONTRACT OWNERS
After significant increases in the Stock
Markets in 1995, the first half of 1996
witnessed increases which were more in line
with long term historical results. As of
this writing, the Dow Jones Industrial
Average increased approximately 5% in value
from the beginning of the year, even after
contending with a correction of about 7% from
its high point. The S&P 500 has increased
since the beginning of 1996 by a smaller
amount of approximately 3%. The Dow Jones
Industrial and the S&P 500 are unmanaged
indices.
While the Stock Markets increased by
relatively small amounts, and are struggling
to hold on to these gains, the yield on the
30 year Treasury Bond increased fairly
significantly from 5.9% at the beginning of
the year, to approximately 7%. Short term
rates, as measured by the 3 month Treasury
Bill, are yielding 5.1% now, which is about
the same as the beginning of the year.
The U.S. Gross Domestic Product for the
first quarter of 1996 increased 2.2% and for
the second quarter the increase is expected
to be near 4.0%. Inflation remains low with
the Consumer Price Index running at 2.8% this
year after last year's 2.5%.
David H. Roe, President
The Outlook. For the balance of 1996, we expect solid economic growth and
continuing moderate inflation with interest rates remaining near current
levels. At the time of this report, macroeconomic indicators are showing mixed
signs. While the expansion is slowing, business profits are expected to
continue to improve, albeit at a slower rate than in 1995.
Distributor of the Contract. ReliaStar Financial Marketing Corporation, a
Bankers Security affiliate, distributes the contract.
Name Change. Please note that on July 1, 1996, Bankers Security Life
Insurance Society changed its name to ReliaStar Bankers Security Life Insurance
Company. ReliaStar Bankers Security is part of a group of companies owned by
ReliaStar Financial Corp.
Respectfully,
David H. Roe
President
ReliaStar Bankers Security Life Insurance Company
<PAGE>
<TABLE>
BANKERS SECURITY VARIABLE ANNUITY FUNDS 134, 130, 132, 133, 030, 032 AND 033
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1996 (Unaudited)
Non-Qualified (P)
----------------------------------------------------
Oppenheimer
---------------------------------------------------
Daily Cash Capital High
Accumulation Money Appreciation Income
ASSETS Fund 134 Fund 130 Fund 132 Fund 133
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investments (see below)...........................$ 10,467 $ 2,724,726 $ 3,021,694 $ 714,039
Net receivable from Bankers Security for contract
charges and reserve transfers.................... - - 54 -
------------ ------------ ------------ ------------
10,467 2,724,726 3,021,748 714,039
LIABILITIES
Net payable to Bankers Security for contract charges
and reserve transfers............................ 98 12,225 - 82
------------ ------------ ------------ ------------
Net Assets $ 10,369 $ 2,712,501 $ 3,021,748 $ 713,957
============ ============ ============ ============
Accumulation Units Outstanding 4,302 1,145,094 472,551 148,996
============ ============ ============ ============
Accumulation Unit Value $ 2.41 $ 2.28 $ 6.34 $ 3.90
============ ============ ============ ============
Investments basis data:
Shares Owned 10,467 2,724,726 78,916 66,546
Net Asset Value $ 1.00 $ 1.00 $ 38.29 $ 10.73
Cost $ 10,467 $ 2,724,726 $ 1,032,431 $ 601,411
Qualified (Q)
--------------------------------------
Oppenheimer
--------------------------------------
Capital High
Money Appreciation Income Combined
ASSETS Fund 030 Fund 032 Fund 033 Total
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investments (see below)...........................$ 389,801 $ 3,633,032 $ 274,173 $ 10,767,932
Net receivable from Bankers Security for contract
charges and reserve transfers.................... 6,798 - - 6,852
------------ ------------ ------------ ------------
396,599 3,633,032 274,173 10,774,784
LIABILITIES
Net payable to Bankers Security for contract charges
and reserve transfers............................ - 1,328 181 13,914
------------ ------------ ------------ ------------
Net Assets $ 396,599 $ 3,631,704 $ 273,992 $ 10,760,870
============ ============ ============ ============
Accumulation Units Outstanding 196,336 638,261 76,748 2,682,288
============ ============ ============ ============
Accumulation Unit Value $ 2.02 $ 5.69 $ 3.57
============ ============ ============
Investments basis data:
Shares Owned 389,801 94,882 25,552
Net Asset Value $ 1.00 $ 38.29 $ 10.73
Cost $ 389,801 $ 1,325,882 $ 231,221
</TABLE>
<TABLE>
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
Six Months Ended June 30, 1996 (Unaudited)
Non-Qualified (P)
---------------------------------------------------
Fund 134 Fund 130 Fund 132 Fund 133
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Income -
Reinvested dividends..........................$ 233 $ 71,387 $ 162,012 $ 37,821
Expenses -
Mortality and expense guarantee fees........... (55) (13,489) (14,288) (3,682)
------------ ------------ ------------ ------------
Net investment income.............................. 178 57,898 147,724 34,139
Net realized gain.................................. - - 125,145 1,123
Net unrealized gain................................ - - 203,910 6,344
------------ ------------ ------------ ------------
Increase in net assets resulting from operations... 178 57,898 476,779 41,606
Net contracts purchased............................ - - - -
Transfer among funds, net.......................... - - 24,714 (24,505)
Reserve transfers from (to) Bankers Security....... - (1,099) (1,259) 2,822
Payments to contract owners -
surrenders and other benefits................... (30) (91,803) (261,821) (39,522)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.............. 148 (35,004) 238,413 (19,599)
Net assets, beginning of period.................... 10,221 2,747,505 2,783,335 733,556
------------ ------------ ------------ ------------
Net assets, end of period.........................$ 10,369 $ 2,712,501 $ 3,021,748 $ 713,957
============ ============ ============ ============
</TABLE>
<TABLE>
Qualified (Q)
--------------------------------------
Combined
Fund 030 Fund 032 Fund 033 Total
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Income -
Reinvested dividends..........................$ 10,026 $ 197,383 $ 14,446 $ 493,308
Expenses -
Mortality and expense guarantee fees........... (1,939) (17,018) (1,432) (51,903)
------------ ------------ ------------ ------------
Net investment income.............................. 8,087 180,365 13,014 441,405
Net realized gain.................................. - 18,846 2,127 147,241
Net unrealized gain................................ - 371,491 796 582,541
------------ ------------ ------------ ------------
Increase in net assets resulting from operations... 8,087 570,702 15,937 1,171,187
Net contracts purchased............................ 18,906 17,909 4,807 41,622
Transfer among funds, net.......................... (1,307) - 1,311 213
Reserve transfers from (to) Bankers Security....... - - - 464
Payments to contract owners -
surrenders and other benefits................... (15,331) (63,762) (28,291) (500,560)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.............. 10,355 524,849 (6,236) 712,926
Net assets, beginning of period.................... 386,244 3,106,855 280,228 10,047,944
------------ ------------ ------------ ------------
Net assets, end of period.........................$ 396,599 $ 3,631,704 $ 273,992 $ 10,760,870
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
BANKERS SECURITY VARIABLE ANNUITY FUNDS 134, 130, 132, 133, 030, 032 AND 033
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
Six Months Ended June 30, 1995 (Unaudited)
Non-Qualified (P)
---------------------------------------------------
Fund 134 Fund 130 Fund 132 Fund 133
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Income -
Reinvested dividends..........................$ 1,332 $ 80,927 $ 11,852 $ 31,403
Expenses -
Mortality and expense guarantee fees........... (267) (14,261) (10,891) (3,380)
------------ ------------ ------------ ------------
Net investment income.............................. 1,065 66,666 961 28,023
Net realized gain.................................. - - 9,310 4,169
Net unrealized gain................................ - - 249,816 36,191
------------ ------------ ------------ ------------
Increase in net assets resulting from operations 1,065 66,666 260,087 68,383
Net contracts purchased............................ - 1,451 7,631 149
Transfer among funds, net.......................... (50,000) (132,918) 187,413 (4,534)
Payments to contract owners -
surrenders and other benefits................... (41) (181,911) (194,013) (65,648)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.............. (48,976) (246,712) 261,118 (1,650)
Net assets, beginning of period.................... 88,431 3,026,253 2,134,163 663,537
------------ ------------ ------------ ------------
Net assets, end of period.........................$ 39,455 $ 2,779,541 $ 2,395,281 $ 661,887
============ ============ ============ ============
</TABLE>
<TABLE>
Qualified (Q)
-------------------------------------- Combined
Fund 030 Fund 032 Fund 033 Total
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Income -
Reinvested dividends..........................$ 14,642 $ 15,643 $ 13,361 $ 169,160
Expenses -
Mortality and expense guarantee fees........... (2,633) (14,904) (1,487) (47,823)
------------ ------------ ------------ ------------
Net investment income.............................. 12,009 739 11,874 121,337
Net realized gain.................................. - 29,982 46 43,507
Net unrealized gain................................ - 318,613 16,418 621,038
------------ ------------ ------------ ------------
Increase in net assets resulting from operations 12,009 349,334 28,338 785,882
Net contracts purchased............................ 11,832 81,088 17,828 119,979
Transfer among funds, net.......................... (11,924) 13,786 (1,862) (39)
Payments to contract owners -
surrenders and other benefits................... (39,157) (159,350) (1,476) (641,596)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.............. (27,240) 284,858 42,828 264,226
Net assets, beginning of period.................... 551,344 2,927,645 257,795 9,649,168
------------ ------------ ------------ ------------
Net assets, end of period.........................$ 524,104 $ 3,212,503 $ 300,623 $ 9,913,394
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
Note 1 - Organization
Bankers Security Variable Annuity Funds P and Q for The Centennial Annuity Plan
(the "Separate Accounts") were established under the provisions of New York
insurance laws by Bankers Security Life Insurance Society ("Bankers Security")
in July 1980 (Fund 134), December 1981 (Fund 130) and December 1982 (Funds 132,
133, 030, 032, 033). The Separate Accounts are registered with the Securities
and Exchange Commission as a unit investment trust under the Investment Company
Act of 1940, as amended (the "Act"), and are used to fund certain benefits for
variable annuity policies issued by Bankers Security. The assets of the
Separate Accounts are invested in open-end diversified management investment
companies registered under the Act.
Bankers Security ceased offering the Separate Account 134 contracts for sale
in September 1981, the date that Revenue Ruling 81-225 was announced by the
Internal Revenue Service. Contract owners of Separate Account 134 are subject
to current taxation on income from fund shares. Bankers Security encourages
contract owners to transfer their balances in this separate account to Separate
Accounts 130, 132 or 133 which are closed to new contract owners but which
continue to accept additional payments from existing contract owners.
Similarly, Separate Accounts 030, 032 and 033 are closed to new contract owners
but continue to accept incremental payments.
Note 2 - Investments
Security transactions are recorded on the trade date at the purchase cost or
sales proceeds, as applicable. Investments owned are valued at closing market
quotations. The difference between the beginning of year value and current
market value of investments owned is recorded as unrealized gain (loss) on
investments. Dividends received are generally recorded as income on the record
date and are reinvested to purchase additional mutual fund shares. The
aggregate cost of shares acquired and the aggregate proceeds from shares sold,
for the six months ended June 30, 1996, were:
Cost of Shares Proceeds from Cost of Shares Proceeds from
Fund Acquired Shares Sold Fund Acquired Shares Sold
134 $ 233 $ 18 030 $ 26,908 $ 17,191
130 79,353 105,120 032 212,476 77,999
132 188,266 275,018 033 20,441 28,601
133 40,539 67,852
Note 3 - Taxes
Bankers Security is taxed as a life insurance company under the Internal
Revenue Code of 1986, as amended (the "Code"). Since the Separate Accounts are
not separate entities from Bankers Security, and their operations form a part
of Bankers Security, they will not be taxed separately as a "regulated
investment company" under Sub-chapter M of the Code. Under existing federal
income tax law, investment income of the Separate Accounts, to the extent that
it is applied to increase reserves under a contract, is not taxed and may be
compounded through reinvestment without additional tax to Bankers Security.
Beginning in January 1982, contract owners of Bankers Security Variable Annuity
Funds 121, 122, 123, 124, 125, 126 and 134 who were adversely affected by
Internal Revenue Service Revenue Ruling 81-225 were able to exchange their
contracts for Bankers Security Variable Annuity Separate Account 130, 132 or
133 contracts. These contract owners may make such transfers without incurring
a charge or fee for transferring.
Note 4 - Charges and Transfers
Bankers Security deducts a daily charge equal to an annual rate of 1.0% of the
daily asset value of the Separate Accounts for mortality and expense risks
assumed by Bankers Security. Where applicable, premium taxes are charged.
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 Bankers Security, are offset by transfers to, or from,
Bankers Security.
Note 5 - Supplementary Information
Accumulation unit values for a unit of the funds outstanding at June 30, were:
Fund 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
134 $2.41 $2.33 $2.24 $2.20 $2.16 $2.08 $1.97 $1.83 $1.70 $1.62
130 2.28 2.20 2.11 2.06 2.02 1.94 1.82 1.70 1.57 1.49
132 6.34 4.58 3.73 3.69 2.81 2.38 2.39 2.35 1.96 1.90
133 3.90 3.42 3.16 2.98 2.45 1.99 1.69 1.61 1.47 1.36
030 2.02 1.95 1.88 1.84 1.79 1.72 1.62 1.51 1.40 1.02
032 5.69 4.11 3.35 3.31 2.51 2.14 2.14 2.11 1.76 1.33
033 3.57 3.13 2.89 2.73 2.24 1.82 1.54 1.47 1.35 1.70
Note 6 - Subsequent Event
The New York Insurance Department has approved a name change for Bankers
Security, effective July 1, 1996, to ReliaStar Bankers Security Life Insurance
Company. Policyowner notifications will be mailed once other states approvals
are obtained.
