A Message to Variable Annuity Contract Owners
We are now in the third year of significant increases in the
U.S. Stock Markets, as measured by the Dow Jones Industrial
Average and the Standard & Poor's 500 Index. Propelled by a
second quarter increase of 17.1%, the Dow's increase for the six
months ended June 30, 1997 was 20.1%. The S&P increased 17.5%
in the first quarter, and 20.6% for the first half of 1997.
Both the Dow Jones Industrial Average and the S&P 500 are
unmanaged indices.
The yield on the 30 year Treasury Bond has decreased recently,
so that at the middle of July, 1997 it was approximately 6.5%.
Short term rates, as measured by the 3 month Treasury Bill, are
approximately 5%, which is slightly lower than a year ago.
The U.S. Gross Domestic Product for the second quarter of 1997
increased approximately 2.2% while inflation remains low with
the Consumer Price Index increasing by 2.3% year-over-year on
June 30, 1997.
The Variable Annuity Contracts which are the subject of this
report are distributed by Washington Square Securities, Inc.
("WSSI"), 20 Washington Avenue South, Minneapolis, Minnesota
55401, (612) 372-5507. WSSI, a registered broker-dealer, is an
affiliated company of ReliaStar Bankers Security Life Insurance
Company, the issuer of your insurance contract.
The Outlook. For the balance of 1997, we expect economic growth
to continue near the trend rate 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 business expansion has been underway for
almost 7 years, it is likely to be sustained throughout 1997.
Nevertheless, profits are expected to grow albeit at a slower
rate than in the past few years.
ReliaStar Bankers Security is part of a group of companies owned
by ReliaStar Financial Corp.
Respectfully,
James G. Cochran
Executive Vice President
ReliaStar Bankers Security Life Insurance Company
<PAGE>
<TABLE>
RELIASTAR BANKERS SECURITY VARIABLE ANNUITY FUNDS P AND Q FOR THE CENTENNIAL ANNUITY PLAN
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1997 (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.......................................$ 11,211 $ 2,254,183 $ 2,715,349 $ 650,119
Net receivable from ReliaStar Bankers.............. 23 - - -
------------ ------------ ------------ ------------
11,234 2,254,183 2,715,349 650,119
LIABILITIES
Net payable to ReliaStar Bankers................... - 6,160 5,766 1,399
------------ ------------ ------------ ------------
Net Assets $ 11,234 $ 2,248,023 $ 2,709,583 $ 648,720
============ ============ ============ ============
Accumulation Units Outstanding 4,628 898,564 392,936 129,481
============ ============ ============ ============
Accumulation Unit Value $ 2.52 $ 2.39 $ 6.76 $ 4.37
============ ============ ============ ============
Investments basis data:
Shares Owned 11,211 2,254,183 69,553 58,359
Net Asset Value $ 1.00 $ 1.00 $ 39.04 $ 11.14
Cost $ 11,211 $ 2,254,183 $ 1,070,990 $ 523,710
</TABLE>
<TABLE>
Qualified (Q)
--------------------------------------
Oppenheimer
--------------------------------------
Capital High
Money Appreciation Income Combined
ASSETS Fund 030 Fund 032 Fund 033 P and Q
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investments.......................................$ 121,596 $ 3,137,020 $ 283,056 $ 9,172,534
Net receivable from ReliaStar Bankers.............. - - - 23
------------ ------------ ------------ ------------
121,596 3,137,020 283,056 9,172,557
LIABILITIES
Net payable to ReliaStar Bankers................... 352 7,575 771 22,023
------------ ------------ ------------ ------------
Net Assets $ 121,244 $ 3,129,445 $ 282,285 $ 9,150,534
============ ============ ============ ============
Accumulation Units Outstanding 54,282 515,721 70,260 2,065,872
============ ============ ============ ============
Accumulation Unit Value $ 2.13 $ 6.06 $ 4.01
============ ============ ============
Investments basis data:
Shares Owned 121,596 80,354 25,409
Net Asset Value $ 1.00 $ 39.04 $ 11.14
Cost $ 121,596 $ 1,103,336 $ 230,075
</TABLE>
<TABLE>
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
Six Months Ended June 30, 1997 (Unaudited)
Non-Qualified (P)
---------------------------------------------------
Fund 134 Fund 130 Fund 132 Fund 133
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Income -
Reinvested dividends..........................$ 248 $ 61,042 $ 128,801 $ 28,731
Expenses -
Mortality and expense guarantee fees........... (55) (10,998) (11,771) (2,910)
------------ ------------ ------------ ------------
Net investment income.............................. 193 50,044 117,030 25,821
Net realized gain (loss)........................... - - 338,830 11,341
Net unrealized gain (loss)......................... - - (351,283) (8,853)
------------ ------------ ------------ ------------
Increase in net assets resulting from operations... 193 50,044 104,577 28,309
Net contracts purchased............................ - - - -
Transfer among funds, net.......................... - 10,534 (11,826) -
Payments to contract owners -
surrenders and other benefits................... (30) (207,948) (261,785) (31,984)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.............. 163 (147,370) (169,034) (3,675)
Net assets, beginning of period.................... 11,071 2,395,393 2,878,617 652,395
------------ ------------ ------------ ------------
Net assets, beginning of period...................$ 11,234 $ 2,248,023 $ 2,709,583 $ 648,720
============ ============ ============ ============
</TABLE>
<TABLE>
Qualified (Q)
--------------------------------------
Combined
Fund 030 Fund 032 Fund 033 P and Q
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Income -
Reinvested dividends..........................$ 5,754 $ 159,217 $ 12,606 $ 396,399
Expenses -
Mortality and expense guarantee fees........... (1,023) (14,728) (1,347) (42,832)
------------ ------------ ------------ ------------
Net investment income.............................. 4,731 144,489 11,259 353,567
Net realized gain (loss)........................... - 280,214 (88) 630,297
Net unrealized gain (loss)......................... - (264,263) 660 (623,739)
------------ ------------ ------------ ------------
Increase in net assets resulting from operations... 4,731 160,440 11,831 360,125
Net contracts purchased............................ 1,403 9,197 5,113 15,713
Transfer among funds, net.......................... 13,369 (13,560) - (1,483)
Payments to contract owners -
surrenders and other benefits................... (158,266) (489,683) (21,399) (1,171,095)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.............. (138,763) (333,606) (4,455) (796,740)
Net assets, beginning of period.................... 260,007 3,463,051 286,740 9,947,274
------------ ------------ ------------ ------------
Net assets, beginning of period...................$ 121,244 $ 3,129,445 $ 282,285 $ 9,150,534
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
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<TABLE>
RELIASTAR BANKERS SECURITY VARIABLE ANNUITY FUNDS P AND Q FOR THE CENTENNIAL ANNUITY PLAN
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) ReliaStar Bankers...... - (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, beginning of period...................$ 10,369 $ 2,712,501 $ 3,021,748 $ 713,957
============ ============ ============ ============
</TABLE>
<TABLE>
Qualified (Q)
-------------------------------------- Combined
Fund 030 Fund 032 Fund 033 P and Q
------------ ------------ ------------ ------------
<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) ReliaStar Bankers...... - - - 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, beginning of period...................$ 396,599 $ 3,631,704 $ 273,992 $ 10,760,870
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
RELIASTAR BANKERS SECURITY VARIABLE ANNUITY FUNDS P AND Q FOR THE CENTENNIAL
ANNUITY PLAN
NOTES TO FINANCIAL STATEMENTS
June 30, 1997
Note 1 - Organization
ReliaStar 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 ReliaStar Bankers Security Life Insurance
Company ("ReliaStar Bankers"), previously Bankers Security Life Insurance
Society, in July 1980 (Fund 134), December 1981 (Fund 130) and December 1982
(Funds 132, 133, 030, 032 and 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 ReliaStar Bankers.
The assets of the Separate Accounts are invested in open-end diversified
management investment companies registered under the Act. ReliaStar Bankers
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. ReliaStar Bankers 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 additional payments from existing contract owners.
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, 1997, were:
Cost of Shares Proceeds from Cost of Shares Proceeds from
Fund Acquired Shares Sold Fund Acquired Shares Sold
- ---- -------------- -------------- ---- --------------- -------------
134 $ 645 $ 106 030 $ 28,252 $ 158,844
130 288,311 493,705 032 180,481 505,337
132 363,166 499,856 033 17,515 21,996
133 28,730 91,683
Note 3 - Taxes
ReliaStar Bankers 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 ReliaStar Bankers, and their operations form a
part of ReliaStar Bankers, 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 ReliaStar Bankers.
Beginning in January 1982, contract owners of ReliaStar 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 ReliaStar 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
ReliaStar Bankers 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 ReliaStar Bankers. 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 ReliaStar Bankers, are offset by transfers to, or from,
ReliaStar Bankers. Included in Net receivable from (payable to) ReliaStar
Bankers are policy transactions which are unsettled as of the reporting date.
Note 5 - Supplementary Information
Accumulation unit values for a unit of the funds outstanding at June 30, were:
Fund 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
134 $2.52 $2.41 $2.33 $2.24 $2.20 $2.16 $2.08 $1.97 $1.83 $1.70
130 2.39 2.28 2.20 2.11 2.06 2.02 1.94 1.82 1.70 1.57
132 6.76 6.34 4.58 3.73 3.69 2.81 2.38 2.39 2.35 1.96
133 4.37 3.90 3.42 3.16 2.98 2.45 1.99 1.69 1.61 1.47
030 2.13 2.02 1.95 1.88 1.84 1.79 1.72 1.62 1.51 1.40
032 6.06 5.69 4.11 3.35 3.31 2.51 2.14 2.14 2.11 1.76
033 4.01 3.57 3.13 2.89 2.73 2.24 1.82 1.54 1.47 1.35