A Message to Variable Annuity Contract Owners
There were significant increases in the Stock Markets in both 1995 and 1996.
In 1996, the Dow Jones Industrial Average increased 26.0% in value and the
Standard & Poor's 500 Index increased by 20.3%. Both the Dow Jones Industrial
Average and the S&P 500 are unmanaged indices.
The yield on the 30 year Treasury Bond has increased recently, so that at the
end of January, 1997 it was approximately 7%. Short term rates, as measured
by the 3 month Treasury Bill, are yielding 5.4% now, which is slightly ahead
of a year ago.
The U.S. Gross Domestic Product for 1996 increased approximately 3% while
inflation remains low with the Consumer Price Index increasing by 3.3% in
1996.
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 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 six 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.
New Investment Options. In November 1996, the Northstar Growth Fund (an
affiliated entity) and the Fidelity Contrafund Fund were added as investment
options. We encourage you to obtain and review the prospectuses for these
funds.
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,
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 USA PLAN
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
Oppenheimer
--------------------------------------------------------------------
NON-QUALIFIED FUNDS - (P) Capital High Multiple Global
Money Appreciation Income Strategies Securities
ASSETS Fund 144 Fund 145 Fund 146 Fund 147 Fund 148
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Investments.......................................$ 3,869,617 $ 24,154,515 $ 14,040,651 $ 22,218,530 $ 15,986,514
Net receivable from ReliaStar Bankers.............. 258,065 - - 31,595 -
------------- ------------- ------------- ------------- -------------
4,127,682 24,154,515 14,040,651 22,250,125 15,986,514
LIABILITIES
Net payable to ReliaStar Bankers................... - 668,257 790,505 - 525,540
------------- ------------- ------------- ------------- -------------
Net Assets $ 4,127,682 $ 23,486,258 $ 13,250,146 $ 22,250,125 $ 15,460,974
============= ============= ============= ============= =============
Accumulation Units Outstanding 2,588,520 7,619,988 4,479,354 8,986,735 8,962,885
============= ============= ============= ============= =============
Accumulation Unit Value $ 1.54 $ 3.08 $ 2.96 $ 2.45 $ 1.72
============= ============= ============= ============= =============
Investments basis data:
Shares Owned 3,869,617 624,309 1,261,514 1,421,531 906,779
Net Asset Value $ 1.00 $ 38.69 $ 11.13 $ 15.63 $ 17.63
Cost $ 3,869,617 $ 11,542,580 $ 11,899,416 $ 16,200,446 $ 10,982,783
</TABLE>
<TABLE>
Oppenheimer Alliance
---------------------------------------------------------------------
NON-QUALIFIED FUNDS - (P) Strategic Short-Term Growth and
Bond Bond Growth Multi-Market Income
ASSETS Fund 150 Fund 151 Fund 152 Fund 149 Fund 143
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Investments.......................................$ 503,620 $ 149,794 $ 2,496,110 $ 590,118 $ 3,384,681
Net receivable from ReliaStar Bankers.............. 7,607 230 421 60,273 57,326
------------- ------------- ------------- ------------- -------------
511,227 150,024 2,496,531 650,391 3,442,007
LIABILITIES
Net payable to ReliaStar Bankers................... - - - - -
------------- ------------- ------------- ------------- -------------
Net Assets $ 511,227 $ 150,024 $ 2,496,531 $ 650,391 $ 3,442,007
============= ============= ============= ============= =============
Accumulation Units Outstanding 412,169 138,625 1,618,311 554,457 1,790,697
============= ============= ============= ============= =============
Accumulation Unit Value $ 1.24 $ 1.08 $ 1.54 $ 1.17 $ 1.92
============= ============= ============= ============= =============
Investments basis data:
Shares Owned 98,943 12,880 91,634 54,997 206,383
Net Asset Value $ 5.09 $ 11.63 $ 27.24 $ 10.73 $ 16.40
Cost $ 475,572 $ 147,149 $ 2,081,215 $ 672,617 $ 2,399,723
</TABLE>
<TABLE>
Fidelity
---------------------------------------------------------------------
NON-QUALIFIED FUNDS - (P) Investment Asset Equity Index
Grade Manager Income 500 Growth
ASSETS Fund 174 Fund 175 Fund 172 Fund 176 Fund 171
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Investments.......................................$ 167,345 $ 669,412 $ 2,897,513 $ 2,029,312 $ 2,345,901
Net receivable from ReliaStar Bankers.............. 1 - 1,793 595 471
------------- ------------- ------------- ------------- -------------
167,346 669,412 2,899,306 2,029,907 2,346,372
LIABILITIES
Net payable to ReliaStar Bankers................... - 97 - - -
------------- ------------- ------------- ------------- -------------
Net Assets $ 167,346 $ 669,315 $ 2,899,306 $ 2,029,907 $ 2,346,372
============= ============= ============= ============= =============
Accumulation Units Outstanding 155,516 535,521 2,203,171 1,428,619 1,793,710
============= ============= ============= ============= =============
Accumulation Unit Value $ 1.07 $ 1.25 $ 1.32 $ 1.42 $ 1.31
============= ============= ============= ============= =============
Investments basis data:
Shares Owned 13,672 39,540 137,780 22,768 75,334
Net Asset Value $ 12.24 $ 16.93 $ 21.03 $ 89.13 $ 31.14
Cost $ 163,016 $ 606,620 $ 2,529,963 $ 1,718,734 $ 2,199,493
</TABLE>
<TABLE>
Fidelity Northstar
------------- -----------------------------------------
NON-QUALIFIED FUNDS - (P) Income and High
Contrafund Growth Yield Bond Growth
ASSETS Fund 178 Fund 120 Fund 127 Fund 179
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Investments.......................................$ 6,144 $ 288,265 $ 1,147,748 $ 118,427
Net receivable from ReliaStar Bankers.............. - - 626 -
------------- ------------- ------------- -------------
6,144 288,265 1,148,374 118,427
LIABILITIES
Net payable to ReliaStar Bankers................... 868 55 - 1,310
------------- ------------- ------------- -------------
Net Assets $ 5,276 $ 288,210 $ 1,148,374 $ 117,117
============= ============= ============= =============
Accumulation Units Outstanding 4,993 232,833 957,784 114,625
============= ============= ============= =============
Accumulation Unit Value $ 1.06 $ 1.24 $ 1.20 $ 1.02
============= ============= ============= =============
Investments basis data:
Shares Owned 371 24,596 217,789 8,411
Net Asset Value $ 16.56 $ 11.72 $ 5.27 $ 14.08
Cost $ 6,000 $ 287,023 $ 1,147,028 $ 117,625
</TABLE>
<TABLE>
Oppenheimer
---------------------------------------------------------------------
QUALIFIED FUNDS - (Q) Capital High Multiple Global
Money Appreciation Income Strategies Securities
ASSETS Fund 044 Fund 045 Fund 046 Fund 047 Fund 048
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Investments.......................................$ 2,191,413 $ 27,898,044 $ 12,184,490 $ 30,848,697 $ 10,908,421
Net receivable from ReliaStar Bankers.............. 140,182 - - - -
------------- ------------- ------------- ------------- -------------
2,331,595 27,898,044 12,184,490 30,848,697 10,908,421
LIABILITIES
Net payable to ReliaStar Bankers................... - 1,670,189 355,491 267,711 94,602
------------- ------------- ------------- ------------- -------------
Net Assets $ 2,331,595 $ 26,227,855 $ 11,828,999 $ 30,580,986 $ 10,813,819
============= ============= ============= ============= =============
Accumulation Units Outstanding 1,520,253 7,879,088 3,921,301 12,763,831 6,251,704
============= ============= ============= ============= =============
Accumulation Unit Value $ 1.53 $ 3.32 $ 3.01 $ 2.39 $ 1.73
============= ============= ============= ============= =============
Investments basis data:
Shares Owned 2,191,413 721,066 1,094,743 1,973,685 618,742
Net Asset Value $ 1.00 $ 38.69 $ 11.13 $ 15.63 $ 17.63
Cost $ 2,191,413 $ 15,025,839 $ 10,387,060 $ 23,042,895 $ 6,974,702
</TABLE>
<TABLE>
Oppenheimer Alliance
---------------------------------------------------------------------
QUALIFIED FUNDS - (Q) Strategic Short-Term Growth and
Bond Bond Growth Multi-Market Income
ASSETS Fund 050 Fund 051 Fund 052 Fund 049 Fund 043
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Investments.......................................$ 359,155 $ 132,489 $ 1,102,103 $ 228,624 $ 3,441,966
Net receivable from ReliaStar Bankers.............. 1,846 88 - 3,610 -
------------- ------------- ------------- ------------- -------------
361,001 132,577 1,102,103 232,234 3,441,966
LIABILITIES
Net payable to ReliaStar Bankers................... - - 405 - 3,932
------------- ------------- ------------- ------------- -------------
Net Assets $ 361,001 $ 132,577 $ 1,101,698 $ 232,234 $ 3,438,034
============= ============= ============= ============= =============
Accumulation Units Outstanding 288,665 115,398 703,092 198,444 1,753,403
============= ============= ============= ============= =============
Accumulation Unit Value $ 1.25 $ 1.15 $ 1.57 $ 1.17 $ 1.95
============= ============= ============= ============= =============
Investments basis data:
Shares Owned 70,561 $ 11,392 40,459 21,307 209,876
Net Asset Value $ 5.09 $ 11.63 $ 27.24 $ 10.73 $ 16.40
Cost $ 340,168 $ 132,337 $ 901,588 $ 206,803 $ 2,384,465
</TABLE>
<TABLE>
Fidelity
---------------------------------------------------------------------
QUALIFIED FUNDS - (Q) Investment Asset Equity Index
Grade Manager Income 500 Growth
ASSETS Fund 074 Fund 075 Fund 072 Fund 076 Fund 071
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Investments.......................................$ 72,767 $ 407,861 $ 1,983,297 $ 1,171,346 $ 2,152,615
Net receivable from ReliaStar Bankers.............. 461 280 13,732 631 12,438
------------- ------------- ------------- ------------- -------------
73,228 408,141 1,997,029 1,171,977 2,165,053
LIABILITIES
Net payable to ReliaStar Bankers................... - - - - -
------------- ------------- ------------- ------------- -------------
Net Assets $ 73,228 $ 408,141 $ 1,997,029 $ 1,171,977 $ 2,165,053
============= ============= ============= ============= =============
Accumulation Units Outstanding 61,107 314,032 1,512,879 823,891 1,617,163
============= ============= ============= ============= =============
Accumulation Unit Value $ 1.06 $ 1.24 $ 1.31 $ 1.42 $ 1.34
============= ============= ============= ============= =============
Investments basis data:
Shares Owned 5,945 24,091 94,308 13,142 69,127
Net Asset Value $ 12.24 $ 16.93 $ 21.03 $ 89.13 $ 31.14
Cost $ 59,514 $ 364,390 $ 1,767,059 $ 988,217 $ 1,992,937
</TABLE>
<TABLE>
Fidelity Northstar
------------- -----------------------------------------
QUALIFIED FUNDS - (Q) Income and High
Contrafund Growth Yield Bond Growth Combined
ASSETS Fund 078 Fund 020 Fund 027 Fund 079 (P & Q)
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Investments.......................................$ 198,074 $ 166,483 $ 284,849 $ 127 $ 192,797,038
Net receivable from ReliaStar Bankers.............. 2,803 10 13,271 - 608,355
------------- ------------- ------------- ------------- -------------
200,877 166,493 298,120 127 193,405,393
LIABILITIES
Net payable to ReliaStar Bankers................... - - - - 4,378,962
------------- ------------- ------------- ------------- -------------
Net Assets $ 200,877 $ 166,493 $ 298,120 $ 127 $ 189,026,431
============= ============= ============= ============= =============
Accumulation Units Outstanding 196,230 141,640 247,943 125 84,888,702
============= ============= ============= ============= =============
Accumulation Unit Value $ 1.02 $ 1.18 $ 1.20 $ 1.01
============= ============= ============= =============
Investments basis data:
Shares Owned 11,961 14,205 54,051 9
Net Asset Value $ 16.56 $ 11.72 $ 5.27 $ 14.08
Cost $ 197,232 $ 167,854 $ 284,580 $ 126
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
RELIASTAR BANKERS SECURITY VARIABLE ANNUITY FUNDS P AND Q FOR THE USA PLAN
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1996
NON-QUALIFIED FUNDS - (P) Fund Fund Fund Fund Fund
144 145 146 147 148
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Income -
Reinvested dividends............................$ 241,079 $ 1,384,371 $ 1,311,003 $ 1,582,719 $ -
Expenses -
Mortality and expense guarantee fees............. (61,993) (295,209) (166,191) (279,480) (188,223)
------------- ------------- ------------- ------------- -------------
Net investment income (expense).................... 179,086 1,089,162 1,144,812 1,303,239 (188,223)
Net realized gain (loss)........................... - 117,744 277,072 246,619 174,127
Net unrealized gain (loss) ........................ - 2,728,301 356,946 1,371,506 2,111,155
------------- ------------- ------------- ------------- -------------
Increase in net assets resulting from operations.. 179,086 3,935,207 1,778,830 2,921,364 2,097,059
Net contracts purchased............................ 525,370 1,444,922 743,094 556,818 545,919
Transfers among funds, net......................... 882,431 182,428 (858,762) (421,690) 3,339,915
Reserve transfers from (to) ReliaStar Bankers...... 284,651 (460,245) (339,451) 53,182 (414,820)
Payments to contract owners -
surrenders and other benefits.................... (2,199,801) (3,385,150) (2,955,568) (2,412,724) (1,396,884)
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net assets.............. (328,263) 1,717,162 (1,631,857) 696,950 4,171,189
Net assets, beginning of year...................... 4,455,945 21,769,096 14,882,003 21,553,175 11,289,785
------------- ------------- ------------- ------------- -------------
Net assets, end of year...........................$ 4,127,682 $ 23,486,258 $ 13,250,146 $ 22,250,125 $ 15,460,974
============= ============= ============= ============= =============
</TABLE>
<TABLE>
NON-QUALIFIED FUNDS - (P) Fund Fund Fund Fund Fund
150 151 152 149 143
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Income -
Reinvested dividends............................$ 32,742 $ 7,599 $ 124,499 $ 44,958 $ 497,525
Expenses -
Mortality and expense guarantee fees............. (5,889) (1,565) (23,064) (8,569) (38,903)
------------- ------------- ------------- ------------- -------------
Net investment income (expense).................... 26,853 6,034 101,435 36,389 458,622
Net realized gain (loss)........................... 91,315 49 31,847 7,860 (247)
Net unrealized gain (loss) ........................ (65,791) 2,249 256,530 4,347 173,604
------------- ------------- ------------- ------------- -------------
Increase in net assets resulting from operations.. 52,377 8,332 389,812 48,596 631,979
Net contracts purchased............................ 119,487 17,396 252,951 4,809 215,247
Transfers among funds, net......................... (2,912,236) 59,114 465,781 (104,040) 213,157
Reserve transfers from (to) ReliaStar Bankers...... 8,169 56 727 60,541 28,430
Payments to contract owners -
surrenders and other benefits.................... (191) (252) (82,767) (18,960) (341,190)
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net assets.............. (2,732,394) 84,646 1,026,504 (9,054) 747,623
Net assets, beginning of year...................... 3,243,621 65,378 1,470,027 659,445 2,694,384
------------- ------------- ------------- ------------- -------------
Net assets, end of year...........................$ 511,227 $ 150,024 $ 2,496,531 $ 650,391 $ 3,442,007
============= ============= ============= ============= =============
</TABLE>
<TABLE>
NON-QUALIFIED FUNDS - (P) Fund Fund Fund Fund
174 175 172 176
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Income -
Reinvested dividends............................$ 4,784 $ 16,549 $ 76,657 $ 43,676
Expenses -
Mortality and expense guarantee fees............. (1,634) (6,386) (29,161) (18,127)
------------- ------------- ------------- -------------
Net investment income (expense).................... 3,150 10,163 47,496 25,549
Net realized gain (loss)........................... (503) (3,037) (10,578) (408)
Net unrealized gain (loss) ........................ 2,064 54,152 259,755 272,956
------------- ------------- ------------- -------------
Increase in net assets resulting from operations.. 4,711 61,278 296,673 298,097
Net contracts purchased............................ 56,996 236,240 520,558 838,255
Transfers among funds, net......................... 46,488 194,011 666,444 432,318
Reserve transfers from (to) ReliaStar Bankers...... 25 15 1,704 1,124
Payments to contract owners -
surrenders and other benefits.................... (2,313) (8,505) (142,203) (8,667)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets.............. 105,907 483,039 1,343,176 1,561,127
Net assets, beginning of year...................... 61,439 186,276 1,556,130 468,780
------------- ------------- ------------- -------------
Net assets, end of year...........................$ 167,346 $ 669,315 $ 2,899,306 $ 2,029,907
============= ============= ============= =============
</TABLE>
<TABLE>
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1995
NON-QUALIFIED FUNDS - (P) Fund Fund Fund Fund Fund
144 145 146 147 148
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Income -
Reinvested dividends............................$ 308,717 $ 95,215 $ 1,407,975 $ 1,803,482 $ 342,019
Expenses -
Mortality and expense guarantee fees............. (69,694) (230,596) (184,254) (286,370) (157,079)
------------- ------------- ------------- ------------- -------------
Net investment income (expense).................... 239,023 (135,381) 1,223,721 1,517,112 184,940
Net realized gain (loss)........................... - 306,187 90,363 397,552 (432,042)
Net unrealized gain (loss) ........................ - 4,985,498 1,157,816 2,394,473 361,987
------------- ------------- ------------- ------------- -------------
Increase (decrease) in net assets resulting from
operations....................................... 239,023 5,156,304 2,471,900 4,309,137 114,885
Net contracts purchased............................ 681,182 1,265,872 747,847 1,058,369 713,226
Transfers among funds, net......................... (1,677,501) (2,081,250) 11,275 905,073 (3,212,686)
Reserve transfers from ReliaStar Bankers........... 62,214 - - 32,242 -
Payments to contract owners -
surrenders and other benefits.................... (2,338,436) (1,184,523) (4,104,406) (5,630,195) (1,235,437)
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net assets.............. (3,033,518) 3,156,403 (873,384) 674,626 (3,620,012)
Net assets, beginning of year...................... 7,489,463 18,612,693 15,755,387 20,878,549 14,909,797
------------- ------------- ------------- ------------- -------------
Net assets, end of year...........................$ 4,455,945 $ 21,769,096 $ 14,882,003 $ 21,553,175 $ 11,289,785
============= ============= ============= ============= =============
</TABLE>
<TABLE>
NON-QUALIFIED FUNDS - (P) Fund Fund Fund Fund Fund
150 151 152 149 143
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Income-
Reinvested dividends............................$ 135,731 $ 1,184 $ - $ - $ 41,930
Expenses -
Mortality and expense guarantee fees............. (18,635) (184) (7,948) (13,558) (28,188)
------------- ------------- ------------- ------------- -------------
Net investment income (expense).................... 117,096 1,000 (7,948) (13,558) 13,742
Net realized gain (loss)........................... 27 4 (4) 381 5,680
Net unrealized gain (loss) ........................ 93,839 396 158,365 58,090 624,379
------------- ------------- ------------- ------------- -------------
Increase (decrease) in net assets resulting from
operations....................................... 210,962 1,400 150,413 44,913 643,801
Net contracts purchased............................ 253,733 61,001 550,732 12,698 210,540
Transfers among funds, net......................... 2,778,966 2,977 771,998 (446,422) 211,499
Reserve transfers from ReliaStar Bankers........... - - - - -
Payments to contract owners -
surrenders and other benefits.................... (40) - (3,116) (238,102) (248,664)
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net assets.............. 3,243,621 65,378 1,470,027 (626,913) 817,176
Net assets, beginning of year...................... - - - 1,286,358 1,877,208
------------- ------------- ------------- ------------- -------------
Net assets, end of year...........................$ 3,243,621 $ 65,378 $ 1,470,027 $ 659,445 $ 2,694,384
============= ============= ============= ============= =============
</TABLE>
<TABLE>
NON-QUALIFIED FUNDS - (P) Fund Fund Fund Fund
174 175 172 176
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Income -
Reinvested dividends............................$ - $ - $ 11,881 $ -
Expenses -
Mortality and expense guarantee fees............. (208) (476) (5,507) (1,816)
------------- ------------- ------------- -------------
Net investment income (expense).................... (208) (476) 6,374 (1,816)
Net realized gain (loss)........................... - - (5) (21)
Net unrealized gain (loss) ........................ 2,265 8,640 107,795 37,622
------------- ------------- ------------- -------------
Increase (decrease) in net assets resulting from
operations....................................... 2,057 8,164 114,164 35,785
Net contracts purchased............................ 34,319 127,865 776,410 311,444
Transfers among funds, net......................... 25,063 50,253 699,031 121,581
Reserve transfers from ReliaStar Bankers........... - - - -
Payments to contract owners -
surrenders and other benefits.................... - (6) (33,475) (30)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets.............. 61,439 186,276 1,556,130 468,780
Net assets, beginning of year...................... - - - -
------------- ------------- ------------- -------------
Net assets, end of year...........................$ 61,439 $ 186,276 $ 1,556,130 $ 468,780
============= ============= ============= =============
</TABLE>
<PAGE>
<TABLE>
RELIASTAR BANKERS SECURITY VARIABLE ANNUITY FUNDS P AND Q FOR THE USA PLAN
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1996
NON-QUALIFIED FUNDS - (P) Fund Fund Fund Fund Fund
171 178 120 127 179
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Income -
Reinvested dividends............................$ 134,967 $ - $ 27,432 $ 39,103 $ 495
Expenses -
Mortality and expense guarantee fees............. (26,992) (6) (2,197) (3,515) (96)
------------- ------------- ------------- ------------- -------------
Net investment income (expense).................... 107,975 (6) 25,235 35,588 399
Net realized gain (loss)........................... (53,924) - 12,784 (718) -
Net unrealized gain................................ 179,882 144 1,136 420 802
------------- ------------- ------------- ------------- -------------
Increase in net assets resulting from operations... 233,933 138 39,155 35,290 1,201
Net contracts purchased............................ 734,213 - 217,947 1,157,664 -
Transfers among funds, net......................... (350,514) 5,258 23,818 (70,319) 116,102
Reserve transfers from (to) ReliaStar Bankers...... 641 (120) (65) 788 (186)
Payments to contract owners -
surrenders and other benefits.................... (111,982) - (1,800) (35) -
------------- ------------- ------------- ------------- -------------
Net increase in net assets......................... 506,291 5,276 279,055 1,123,388 117,117
Net assets, beginning of year...................... 1,840,081 - 9,155 24,986 -
------------- ------------- ------------- ------------- -------------
Net assets, end of year...........................$ 2,346,372 $ 5,276 $ 288,210 $ 1,148,374 $ 117,117
============= ============= ============= ============= =============
</TABLE>
<TABLE>
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1995
NON-QUALIFIED FUNDS - (P) Fund Fund Fund
171 120 127
------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Income -
Reinvested dividends............................$ - $ 341 $ 1,214 $
Expenses -
Mortality and expense guarantee fees............. (6,612) (35) (86)
------------- ------------- -------------
Net investment income (expense).................... (6,612) 306 1,128
Net realized gain (loss)........................... (1,345) - -
Net unrealized gain (loss) ........................ (33,474) 106 300
------------- ------------- -------------
Increase (decrease) in net assets resulting from
operations....................................... (41,431) 412 1,428
Net contracts purchased............................ 546,943 8,743 23,558
Transfers among funds, net......................... 1,353,543 - -
Reserve transfers from ReliaStar Bankers........... - - -
Payments to contract owners -
surrenders and other benefits.................... (18,974) - -
------------- ------------- --------------
Net increase in net assets......................... 1,840,081 9,155 24,986
Net assets, beginning of year...................... - - -
------------- ------------- -------------
Net assets, end of year...........................$ 1,840,081 $ 9,155 $ 24,986
============= ============= =============
See accompanying notes to financial statements.
</TABLE>
<TABLE>
RELIASTAR BANKERS SECURITY VARIABLE ANNUITY FUNDS P AND Q FOR THE USA PLAN
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1996
QUALIFIED FUNDS - (Q) Fund Fund Fund Fund Fund
044 045 046 047 048
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Income -
Reinvested dividends............................$ 147,811 $ 1,530,037 $ 1,132,604 $ 2,234,033 $ -
Expenses -
Mortality and expense guarantee fees............. (38,141) (315,006) (147,384) (390,199) (138,643)
------------- ------------- ------------- ------------- -------------
Net investment income (expense).................... 109,670 1,215,031 985,220 1,843,834 (138,643)
Net realized gain.................................. - 258,755 213,381 380,537 90,758
Net unrealized gain (loss) ........................ - 2,976,086 365,817 1,890,594 1,588,477
------------- ------------- ------------- ------------- -------------
Increase in net assets resulting from operations... 109,670 4,449,872 1,564,418 4,114,965 1,540,592
Net contracts purchased............................ 706,946 1,809,140 620,217 848,778 651,341
Transfers among funds, net......................... (214,755) 982,830 (844,091) (345,844) 616,043
Reserve transfers from (to) ReliaStar Bankers...... 74,690 (392,613) (96,355) (9,188) 7330
Payments to contract owners -
surrenders and other benefits.................... (514,405) (3,771,709) (2,123,945) (4,740,178) (1,653,250)
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net assets.............. 162,146 3,077,520 (879,756) (131,467) 1,162,056
Net assets, beginning of year...................... 2,169,449 23,150,335 12,708,755 30,712,453 9,651,763
------------- ------------- ------------- ------------- -------------
Net assets, end of year...........................$ 2,331,595 $ 26,227,855 $ 11,828,999 $ 30,580,986 $ 10,813,819
============= ============= ============= ============= =============
</TABLE>
QUALIFIED FUNDS - (Q) Fund
050
-------------
Income -
Reinvested dividends............................$ 22,771
Expenses -
Mortality and expense guarantee fees............. (3,834)
-------------
Net investment income (expense).................... 18,937
Net realized gain (loss)........................... 49,592
Net unrealized gain (loss) ........................ (35,769)
-------------
Increase in net assets resulting from operations... 32,760
Net contracts purchased............................ 114,329
Transfers among funds, net......................... (1,143,888)
Reserve transfers from (to) ReliaStar Bankers...... 1,943
Payments to contract owners -
surrenders and other benefits.................... (1,848)
-------------
Net increase (decrease) in net assets.............. (996,704)
Net assets, beginning of year...................... 1,357,705
-------------
Net assets, end of year...........................$ 361,001
=============
<TABLE>
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1995
QUALIFIED FUNDS - (Q) Fund Fund Fund Fund Fund
044 045 046 047 048
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Income -
Reinvested dividends............................$ 178,527 $ 111,627 $ 1,280,419 $ 2,283,891 $ 282,598
Expenses -
Mortality and expense guarantee fees............. (40,392) (260,575) (154,887) (377,774) (134,920)
------------- ------------- ------------- ------------- -------------
Net investment income.............................. 138,135 (148,948) 1,125,532 1,906,117 147,678
Net realized gain (loss)........................... - (172,992) (51,148) 172,578 (436,789)
Net unrealized loss ............................... - 6,248,990 1,136,063 3,493,622 393,144
------------- ------------- ------------- ------------- -------------
Increase (decrease) in net assets resulting from
operations....................................... 138,135 5,927,050 2,210,447 5,572,317 104,033
Net contracts purchased............................ 294,904 1,663,338 1,307,706 1,811,501 855,562
Transfers among funds, net......................... (1,479,439) (1,692,185) (504,794) 2,428,172 (2,924,746)
Reserve transfers from ReliaStar Bankers........... - 45 - 5,948 703
Payments to contract owners -
surrenders and other benefits.................... (555,713) (4,286,192) (2,517,478) (5,052,251) (1,540,007)
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net assets.............. (1,602,113) 1,612,056 495,881 4,765,687 (3,504,455)
Net assets, beginning of year...................... 3,771,562 21,538,279 12,212,874 25,946,766 13,156,218
------------- ------------- ------------- ------------- -------------
Net assets, end of year...........................$ 2,169,449 $ 23,150,335 $ 12,708,755 $ 30,712,453 $ 9,651,763
============= ============= ============= ============= =============
</TABLE>
QUALIFIED FUNDS - (Q) Fund
050
-------------
Income -
Reinvested dividends............................$ 69,702
Expenses -
Mortality and expense guarantee fees............. (10,439)
-------------
Net investment income.............................. 59,263
Net realized gain (loss)........................... 1,279
Net unrealized loss ............................... 54,756
-------------
Increase (decrease) in net assets resulting from
operations....................................... 115,298
Net contracts purchased............................ 68,595
Transfers among funds, net......................... 1,282,435
Reserve transfers from ReliaStar Bankers........... -
Payments to contract owners -
surrenders and other benefits.................... (108,623)
-------------
Net increase (decrease) in net assets.............. 1,357,705
Net assets, beginning of year...................... -
-------------
Net assets, end of year...........................$ 1,357,705
=============
<PAGE>
<TABLE>
RELIASTAR BANKERS SECURITY VARIABLE ANNUITY FUNDS P AND Q FOR THE USA PLAN
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1996
QUALIFIED FUNDS - (Q) Fund Fund Fund Fund Fund
051 052 049 043 074
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Income -
Reinvested dividends............................$ 7,200 $ 44,742 $ 17,811 $ 502,680 $ 308
Expenses -
Mortality and expense guarantee fees............. (1,428) (10,700) (3,125) (39,262) (975)
------------- ------------- ------------- ------------- -------------
Net investment income (expense).................... 5,772 34,042 14,686 463,418 (667)
Net realized gain (loss)........................... (1,115) 2,094 1,130 10,649 (2,111)
Net unrealized gain (loss) ........................ (1,637) 144,097 2,682 169,449 3,095
------------- ------------- ------------- ------------- -------------
Increase in net assets resulting from operations... 3,020 180,233 18,498 643,516 317
Net contracts purchased............................ 69,577 225,956 15,509 209,673 26,690
Transfers among funds, net......................... (12,374) 273,462 (27,792) 39,004 149,969
Reserve transfers from (to) ReliaStar Bankers...... (84) (171) 11,008 22,500 149
Payments to contract owners -
surrenders and other benefits.................... (2,639) (63,568) (24,438) (325,412) (109,907)
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net assets.............. 57,500 615,912 (7,215) 589,281 67,218
Net assets, beginning of year...................... 75,077 485,786 239,449 2,848,753 6,010
------------- ------------- ------------- ------------- -------------
Net assets, end of year...........................$ 132,577 $ 1,101,698 $ 232,234 $ 3,438,034 $ 73,228
============= ============= ============= ============= =============
</TABLE>
<TABLE>
QUALIFIED FUNDS - (Q) Fund Fund Fund Fund Fund
075 072 076 071 078
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Income -
Reinvested dividends............................$ 15,602 $ 39,135 $ 17,695 $ 82,159 $ -
Expenses -
Mortality and expense guarantee fees............. (4,264) (19,442) (10,654) (22,102) (294)
------------- ------------- ------------- ------------- -------------
Net investment income.............................. 11,338 19,693 7,041 60,057 (294)
Net realized gain (loss)........................... (2,194) (58) 2,290 (18,321) -
Net unrealized loss ............................... 32,782 167,868 154,108 162,714 842
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net assets.............. 41,926 187,503 163,439 204,450 548
Net contracts purchased............................ 141,540 437,554 215,669 651,454 -
Transfers among funds, net......................... 89,655 811,987 645,408 662,835 200,203
Reserve transfers from (to) ReliaStar Bankers...... 251 13,848 1,953 12,859 126
Payments to contract owners -
surrenders and other benefits.................... (50,188) (191,014) (206,675) (436,096) -
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net assets.............. 223,184 1,259,878 819,794 1,095,502 200,877
Net assets, beginning of year...................... 184,957 737,151 352,183 1,069,551 -
Net assets, end of year............................------------- ------------- ------------- ------------- -------------
$ 408,141 $ 1,997,029 $ 1,171,977 $ 2,165,053 $ 200,877
============= ============= ============= ============= =============
</TABLE>
<TABLE>
QUALIFIED FUNDS - (Q) Fund Fund Fund Combined
020 027 079 (P & Q)
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Income -
Reinvested dividends............................$ 14,895 $ 9,566 $ 1 $ 11,389,208
Expenses -
Mortality and expense guarantee fees............. (1,251) (750) - (2,304,654)
------------- ------------- ------------- -------------
Net investment income.............................. 13,644 8,816 1 9,084,554
Net realized gain (loss)........................... 3,347 487 - 1,879,223
Net unrealized loss ............................... (2,078) (10) 1 15,329,276
------------- ------------- ------------- -------------
Increase in net assets resulting from operations... 14,913 9,293 2 26,293,053
Net contracts purchased............................ 97,623 261,904 - 15,291,786
Transfers among funds, net......................... 9,144 (20,867) 126 3,780,759
Reserve transfers from (to) ReliaStar Bankers...... 121 12,683 (1) (1,113,785)
Payments to contract owners -
surrenders and other benefits.................... (118) (49) - (27,284,431)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets.............. 121,683 262,964 127 16,967,382
Net assets, beginning of year...................... 44,810 35,156 - 172,059,049
------------- ------------- ------------- -------------
Net assets, end of year...........................$ 166,493 $ 298,120 $ 127 $ 189,026,431
============= ============= ============= =============
</TABLE>
<TABLE>
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1995
QUALIFIED FUNDS - (Q) Fund Fund Fund Fund Fund
051 052 049 043 074
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Income -
Reinvested dividends............................$ 2,192 $ 668 $ - $ 45,965 $ -
Expenses -
Mortality and expense guarantee fees............. (348) (2,781) (5,263) (30,062) (12)
------------- ------------- ------------- ------------- -------------
Net investment income.............................. 1,844 (2,113) (5,263) 15,903 (12)
Net realized gain (loss)........................... 229 409 565 6,527 -
Net unrealized loss ............................... 1,789 56,418 21,618 679,794 158
------------- ------------- ------------- ------------- -------------
Increase (decrease) in net assets resulting from
operations....................................... 3,862 54,714 16,920 702,224 146
Net contracts purchased............................ 31,462 153,426 7,296 248,183 5,226
Transfers among funds, net......................... 39,768 290,304 (91,928) 247,265 638
Reserve transfers from ReliaStar Bankers........... - - - (552) -
Payments to contract owners -
surrenders and other benefits.................... (15) (12,658) (224,057) (367,438) -
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net assets.............. 75,077 485,786 (291,769) 829,682 6,010
Net assets, beginning of year...................... - - 531,218 2,019,071 -
------------- ------------- ------------- ------------- -------------
Net assets, end of year...........................$ 75,077 $ 485,786 $ 239,449 $ 2,848,753 $ 6,010
============= ============= ============= ============= =============
</TABLE>
<TABLE>
QUALIFIED FUNDS - (Q) Fund Fund Fund Fund
075 072 076 071
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Income -
Reinvested dividends............................$ - $ 6,510 $ - $ -
Expenses -
Mortality and expense guarantee fees............. (717) (2,378) (1,294) (2,793)
------------- ------------- ------------- -------------
Net investment income.............................. (717) 4,132 (1,294) (2,793)
Net realized gain (loss)........................... 9 58 129 (1,949)
Net unrealized loss ............................... 10,689 48,370 29,021 (3,036)
------------- ------------- ------------- -------------
Increase (decrease) in net assets resulting from
operations....................................... 9,981 52,560 27,856 (7,778)
Net contracts purchased............................ 90,952 313,279 101,983 262,907
Transfers among funds, net......................... 84,972 372,505 222,442 820,266
Reserve transfers from ReliaStar Bankers........... - - - -
Payments to contract owners -
surrenders and other benefits.................... (948) (1,193) (98) (5,844)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets.............. 184,957 737,151 352,183 1,069,551
Net assets, beginning of year...................... - - - -
------------- ------------- ------------- -------------
Net assets, end of year...........................$ 184,957 $ 737,151 $ 352,183 $ 1,069,551
============= ============= ============= =============
</TABLE>
<TABLE>
QUALIFIED FUNDS - (Q) Fund Fund Fund Combined
020 027 079 (P & Q)
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Income -
Reinvested dividends............................$ 1,622 $ 1,781 $ - $ 8,415,191
Expenses -
Mortality and expense guarantee fees............. (171) (150) - (2,036,202)
------------- ------------- ------------- -------------
Net investment income.............................. 1,451 1,631 - 6,378,989
Net realized gain (loss)........................... - - - (114,318)
Net unrealized gain (loss)......................... 707 279 - 22,130,479
------------- ------------- ------------- -------------
Increase (decrease) in net assets resulting from
operations....................................... 2,158 1,910 - 28,395,150
Net contracts purchased............................ 4,377 583 - 14,605,762
Transfers among funds, net......................... 38,292 32,678 - (1,319,955)
Reserve transfers from ReliaStar Bankers........... - - 100,600
Payments to contract owners -
surrenders and other benefits.................... (17) (15) - (29,707,951)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets.............. 44,810 35,156 - 12,073,606
Net assets, beginning of year...................... - - - 159,985,443
------------- ------------- ------------- -------------
Net assets, end of year...........................$ 44,810 $ 35,156 $ - $ 172,059,049
============= ============= ============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
RELIASTAR BANKERS SECURITY VARIABLE ANNUITY FUNDS P AND Q FOR THE USA PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
Note 1 - Organization
ReliaStar Bankers Security Variable Annuity Funds P and Q for The USA 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 (see
Note 6), in April 1987 (Funds 144, 145, 146, 147, 044, 045, 046 and 047), in
November 1990 (Funds 148, 149, 048 and 049), in December 1990 (Fund 043), in
January 1991 (Fund 143), in April 1995 (Funds 150, 151, 152, 050, 051 and
052), in May 1995 (Funds 174, 175, 172, 176, 171, 120, 127, 074, 075, 072,
076, 071, 020 and 027) and in November 1996 (Funds 178, 179, 078 and 079).
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.
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 beginning of year value and current market
value of investments owned is recorded as an 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 year ended December 31, 1996, were:
<TABLE>
Cost of Proceeds Cost of Proceeds Cost of Proceeds
Shares from Shares from Shares from
Fund Acquired Shares Sold Fund Acquired Shares Sold Fund Acquired Shares Sold
<S> <C> <C> <S> <C> <C> <S> <C> <C>
144 $11,580,814 $12,227,088 176 $1,357,721 $ 69,753 052 $ 854,296 $ 383,702
145 6,994,490 7,655,921 171 1,400,408 1,020,737 049 45,447 64,472
146 7,194,294 7,816,635 178 6,000 - 043 1,029,730 633,242
147 3,079,957 4,055,732 120 654,732 389,545 074 189,835 123,992
148 9,437,632 7,087,680 127 1,210,808 87,821 075 263,308 70,336
150 286,336 3,010,144 179 117,643 18 072 1,463,112 383,951
151 311,693 198,190 044 9,760,875 9,663,382 076 921,559 258,208
152 1,844,382 1,111,020 045 5,042,218 5,017,502 071 1,747,616 808,143
149 64,219 146,648 046 5,654,894 7,015,406 078 197,232 -
143 1,168,130 637,016 047 3,312,452 5,737,459 020 218,087 97,078
174 111,257 6,900 048 4,761,973 5,273,142 027 336,317 86,963
175 629,965 197,927 050 205,260 1,286,455 079 126 -
172 1,825,984 734,086 051 126,572 66,290
</TABLE>
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.
Note 4 - Charges and Transfers
ReliaStar Bankers does not deduct a sales charge from purchase payments made
for these contracts. All or a portion of the accumulated value may be
withdrawn during the accumulation period. However, purchase payments that are
partially or totally withdrawn from the contract prior to eight years from
their date of payment will be charged (with certain exceptions) a contingent
deferred sales charge of a percentage of the amount of the purchase payment
withdrawn. No such charge will be imposed against withdrawals of purchase
payments held for at least eight years. The withdrawn amounts shall be
considered withdrawals of purchase payments until the total of all purchase
payments in the accumulated value have been withdrawn. A contingent deferred
sales charge will not be made against that portion of withdrawals which are in
excess of the total of all purchase payments. Within the period applicable to
the contingent deferred sales charge for purchase payments, the contract owner
may surrender up to 10% of such purchase payments held for at least one year,
within stated guidelines, without paying a contingent deferred sales charge.
This "free withdrawal" amount is cumulative to 20% of such purchase payments
if no withdrawals are taken for a two-year period. ReliaStar Bankers deducts
a daily charge equal to an annual rate of 1.25% of the daily asset value of
the Separate Accounts for mortality and expense risks assumed. In addition,
on each contract anniversary, ReliaStar Bankers deducts an annual maintenance
charge of $30 from the accumulated value of the contract. Where applicable,
premium taxes are charged.
The amount of reserves for contracts in the distribution period is determined
by actuarial assumptions which meet statutory requirements. Gains and 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.
<PAGE>
Note 5 - Transfers Among Funds
ReliaStar Bankers established a fixed fund in 1989 to which contract owners in
the Separate Accounts could transfer all or part of their contract equity.
This fund is reported in the General Account of ReliaStar Bankers. Transfer
activity to/from the fixed annuity fund is included in Transfers Among Funds
in the Statements of Operations and Changes in Net Assets. Net transfers from
(to) the fixed fund were $3.8 million and ($1.3) million for the years ended
December 31, 1996 and 1995.
Note 6 - Related Parties
On January 17, 1995, ReliaStar Bankers became an indirect wholly owned
subsidiary of ReliaStar Financial Corp. ("ReliaStar"), an insurance holding
company based in Minneapolis, Minnesota. In conjunction with this merger, in
May 1995, the Northstar Income and Growth and High Yield Bond Funds were added
as investment options. Subsequently, in November 1996, the Northstar Growth
Fund was added as an investment option. These Funds are affiliates of
ReliaStar Bankers.
Note 7 - Supplementary Information
Accumulation unit values for a unit of the funds outstanding at December 31,
were:
Fund 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
144 $ 1.54 $ 1.49 $ 1.42 $ 1.38 $ 1.36 $ 1.32 $ 1.26 $ 1.18 $ 1.10 $ 1.03
145 3.08 2.60 1.98 2.17 1.73 1.53 1.01 1.22 0.97 0.89
146 2.96 2.60 2.19 2.29 1.83 1.58 1.19 1.15 1.11 0.98
147 2.45 2.15 1.80 1.85 1.62 1.50 1.30 1.34 1.17 0.99
148 1.72 1.48 1.47 1.58 0.94 1.03 1.00 n/a n/a n/a
150 1.24 1.12 n/a n/a n/a n/a n/a n/a n/a n/a
151 1.08 1.05 n/a n/a n/a n/a n/a n/a n/a n/a
152 1.54 1.25 n/a n/a n/a n/a n/a n/a n/a n/a
149 1.17 1.08 1.03 1.11 1.06 1.06 1.00 n/a n/a n/a
143 1.92 1.57 1.17 1.19 1.08 1.02 n/a n/a n/a n/a
174 1.07 1.06 n/a n/a n/a n/a n/a n/a n/a n/a
175 1.25 1.11 n/a n/a n/a n/a n/a n/a n/a n/a
172 1.32 1.17 n/a n/a n/a n/a n/a n/a n/a n/a
176 1.42 1.17 n/a n/a n/a n/a n/a n/a n/a n/a
171 1.31 1.15 n/a n/a n/a n/a n/a n/a n/a n/a
178 1.06 n/a n/a n/a n/a n/a n/a n/a n/a n/a
120 1.24 1.08 n/a n/a n/a n/a n/a n/a n/a n/a
127 1.20 1.01 n/a n/a n/a n/a n/a n/a n/a n/a
179 1.02 n/a n/a n/a n/a n/a n/a n/a n/a n/a
044 1.53 1.47 1.41 1.37 1.35 1.31 1.25 1.17 1.09 1.03
045 3.32 2.80 2.14 2.34 1.86 1.64 1.08 1.31 1.04 0.93
046 3.01 2.65 2.23 2.33 1.87 1.61 1.22 1.18 1.14 1.00
047 2.39 2.10 1.75 1.81 1.58 1.47 1.26 1.30 1.15 0.95
048 1.73 1.48 1.47 1.58 0.94 1.03 1.00 n/a n/a n/a
050 1.25 1.13 n/a n/a n/a n/a n/a n/a n/a n/a
051 1.15 1.11 n/a n/a n/a n/a n/a n/a n/a n/a
052 1.57 1.27 n/a n/a n/a n/a n/a n/a n/a n/a
049 1.17 1.08 1.03 1.11 1.05 1.06 1.00 n/a n/a n/a
043 1.95 1.59 1.18 1.20 1.09 1.02 1.00 n/a n/a n/a
074 1.06 1.04 n/a n/a n/a n/a n/a n/a n/a n/a
075 1.24 1.11 n/a n/a n/a n/a n/a n/a n/a n/a
072 1.31 1.16 n/a n/a n/a n/a n/a n/a n/a n/a
076 1.42 1.17 n/a n/a n/a n/a n/a n/a n/a n/a
071 1.34 1.18 n/a n/a n/a n/a n/a n/a n/a n/a
078 1.02 n/a n/a n/a n/a n/a n/a n/a n/a n/a
020 1.18 1.04 n/a n/a n/a n/a n/a n/a n/a n/a
027 1.20 1.00 n/a n/a n/a n/a n/a n/a n/a n/a
079 1.01 n/a n/a n/a n/a n/a n/a n/a n/a n/a
<PAGE>
INDEPENDENT AUDITORS' REPORT
To ReliaStar Bankers Security Life Insurance Company and
ReliaStar Bankers Security Variable Annuity Funds P and Q for the USA
Plan Contract Owners:
We have audited the accompanying combined statement of assets and liabilities
of the ReliaStar Bankers Security Variable Annuity Funds P and Q for the USA
Plan as of December 31, 1996, and the related combined statements of
operations and changes in net assets for the years ended December 31, 1996 and
1995. These financial statements are the responsibility of ReliaStar Bankers
Security Life Insurance Company management. Our responsibility is to express
an opinion on these financial statements based on our audits. The
accumulation unit values for each of the years in the eight-year period ended
December 31, 1994, were audited by other auditors whose report dated February
9, 1995, expressed an unqualified opinion on those values.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the combined funds
constituting the ReliaStar Bankers Security Variable Annuity Funds P and Q for
the USA Plan as of December 31, 1996, and the combined results of operations
and the changes in net assets for the years ended December 31, 1996 and 1995,
in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Minneapolis, MN
February 14, 1997
