NWNL SELECT VARIABLE ACCOUNT
ANNUAL REPORT
FOR THE PERIOD ENDED
DECEMBER 31, 1995
[LOGO]
This report provides information to Northwestern National Life Insurance
Company's Select Variable Account Contract Owners. If it is used for any other
purpose, it must be accompanied or preceded by a current NWNL Select Variable
Account Prospectus which discloses any charges and other important information
about the Account, together with the current Prospectuses for Northstar,
Fidelity's Variable Insurance Product Fund (VIPF), Variable Insurance Products
II (VIPF II) and the Putnam Capital Manager Trust (PCM).
<PAGE>
INDEPENDENT AUDITORS' REPORT
Board of Directors
Northwestern National Life Insurance
Company and Contract Owners of
NWNL Select Variable Account:
We have audited the accompanying statement of assets and liabilities of NWNL
Select Variable Account as of December 31, 1995 and the related combined
statements of operations and changes in Contract Owners' equity for each of the
three years in the period ended December 31, 1995. These financial statements
are the responsibility of the management of Northwestern National Life Insurance
Company. Our responsibility is to express an opinion on these financial
statements based on our audits.
We have 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
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures include
confirmation of the securities owned as of December 31, 1995, by correspondence
with the Account custodians. 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 NWNL Select Variable Account as
of December 31, 1995, and the results of its operations and changes in Contract
Owners' equity for each of the three years in the period ended December 31,
1995, in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Minneapolis, Minnesota
February 2, 1996
i
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
(in Thousands, Except Share and Unit Data)
<TABLE>
<CAPTION>
Select Select Fidelity's VIPF Fidelity's VIPF Fidelity's VIPF
Capital Growth Managed Money Market High Income Equity-Income
ASSETS: Fund, Inc. Fund, Inc. Portfolio Portfolio Portfolio
- -------
Investments in mutual funds at market value: ------------- ------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
NORTHWESTERN'S:
Select Capital Growth Fund, Inc.
0 shares (cost $-) $-
Select Managed Fund, Inc.
0 shares (cost $-) $ -
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
19,384,402 shares (cost $19,384) $19,384
High Income Portfolio
1,917,187 shares (cost $21,472) $23,102
Equity-Income Portfolio
4,804,452 shares (cost $71,360) $92,582
Growth Portfolio
3,114,103 shares (cost $68,697)
Overseas Portfolio
1,539,261 shares (cost $24,059)
Asset Manager Portfolio
3,137,752 shares (cost $44,874)
Investment Grade Bond Portfolio
1,282,434 shares (cost $14,901)
Index 500 Portfolio
105,609 shares (cost $6,885)
Contrafund Portfolio
388,952 shares (cost $5,225)
PUTNAM'S PCM:
Diversified Income Fund
637,861 shares (cost $6,466)
Growth and Income Fund
536,994 shares (cost $9,984)
Utilities Growth and Income Fund
268,645 shares (cost $3,148)
Voyager Fund
633,805 shares (cost $16,013)
Asia Pacific Growth Fund
76,773 shares (cost $765)
New Opportunities Fund
240,228 shares (cost $3,441)
NORTHSTAR'S:
Income and Growth Fund
40,273 shares (cost $461)
Growth Fund
17,484 shares (cost $213)
Multi-Sector Bond Fund
48,730 shares (cost $248)
---------- ---------- ---------- ---------- ----------
Total Assets $- $- $19,384 $23,102 $92,582
========== ========== ========== ========== ==========
LIABILITIES AND CONTRACT OWNERS' EQUITY:
Due to Northwestern National Life Insurance Company
for contract charges and reserve transfers $- $- $20 $24 $98
Contract Owners' Equity - - 19,364 23,078 92,484
---------- ---------- ---------- ---------- ----------
Total Liabilities and Contract Owners' Equity $- $- $19,384 $23,102 $92,582
========== ========== ========== ========== ==========
Units Outstanding: - - 1,607,916.548 1,368,646.703 4,437,068.543
Net Asset Value per Unit:
Select*Annuity II
Tax-Qualified $- $- $14.093183 $21.133192 $25.834771
Non-Tax Qualified $- $- $14.093183 $21.133192 $25.834771
Select*Annuity III
Tax-Qualified $- $- $10.731589 $11.456275 $14.008100
Non-Tax Qualified $- $- $10.731589 $11.456275 $14.008100
</TABLE>
The accompanying notes are an integral part of the financial statements.
ii
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES, CONTINUED
<TABLE>
<CAPTION>
Fidelity's
Fidelity's Fidelity's VIPF II Fidelity's Fidelity's
VIPF Fidelity's VIPF VIPF II Investment VIPF II VIPF II
Growth Overseas Asset Manager Grade Bond Index 500 Contrafund
ASSETS: Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- -------
Investments in mutual funds at market value: ------------- ------------- ------------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
NORTHWESTERN'S:
Select Capital Growth Fund, Inc.
0 shares (cost $-)
Select Managed Fund, Inc.
0 shares (cost $-)
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
19,384,402 shares (cost $19,384)
High Income Portfolio
1,917,187 shares (cost $21,472)
Equity-Income Portfolio
4,804,452 shares (cost $71,360)
Growth Portfolio
3,114,103 shares (cost $68,697) $90,932
Overseas Portfolio
1,539,261 shares (cost $24,059) $26,244
Asset Manager Portfolio
3,137,752 shares (cost $44,874) $49,545
Investment Grade Bond Portfolio
1,282,434 shares (cost $14,901) $16,005
Index 500 Portfolio
105,609 shares (cost $6,885) $7,996
Contrafund Portfolio
388,952 shares (cost $5,225) $5,360
PUTNAM'S PCM:
Diversified Income Fund
637,861 shares (cost $6,466)
Growth and Income Fund
536,994 shares (cost $9,984)
Utilities Growth and Income Fund
268,645 shares (cost $3,148)
Voyager Fund
633,805 shares (cost $16,013)
Asia Pacific Growth Fund
76,773 shares (cost $765)
New Opportunities Fund
240,228 shares (cost $3,441)
NORTHSTAR'S:
Income and Growth Fund
40,273 shares (cost $461)
Growth Fund
17,484 shares (cost $213)
Multi-Sector Bond Fund
48,730 shares (cost $248)
---------- ---------- ---------- ---------- ---------- ----------
Total Assets $90,932 $26,244 $49,545 $16,005 $7,996 $5,360
======= ======= ======= ======= ====== ======
LIABILITIES AND CONTRACT OWNERS' EQUITY:
Due to Northwestern National Life Insurance
Company for contract charges and reserve
transfers $98 $28 $53 $18 $9 $6
Contract Owners' Equity 90,834 26,216 49,492 15,987 7,987 5,354
---------- ---------- ---------- ---------- ---------- ----------
Total Liabilities and Contract Owners'
Equity $90,932 $26,244 $49,545 $16,005 $7,996 $5,360
======= ======= ======= ======= ====== ======
Units Outstanding: 4,004,682.840 1,821,113.544 3,660,661.401 1,284,788.353 575,979.607 440,844.341
Net Asset Value per Unit:
Select*Annuity II
Tax-Qualified $28.140162 $17.036049 $15.180714 $13.997190 $14.354982 $-
Non-Tax Qualified $28.140162 $17.036049 $15.180714 $13.997190 $14.354982 $-
Select*Annuity III
Tax-Qualified $13.161108 $10.756888 $10.609566 $10.966152 $13.459368 $12.103084
Non-Tax Qualified $13.161108 $10.756888 $10.609566 $10.966152 $13.459368 $12.103084
</TABLE>
The accompanying notes are an integral part of the financial statements.
iii
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES, CONTINUED
December 31, 1995
(in Thousands, Except Share and Unit Data)
<TABLE>
<CAPTION>
Putnam's PCM Putnam's PCM Putnam's PCM Putnam's PCM
Diversified Growth and Utilities Growth Putnam's PCM Asia Pacific
Income Income and Income Voyager Growth
ASSETS: Fund Fund Fund Fund Fund
- -------
Investments in mutual funds at market value: ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
NORTHWESTERN'S:
Select Capital Growth Fund, Inc.
0 shares (cost $-)
Select Managed Fund, Inc.
0 shares (cost $-)
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
19,384,402 shares (cost $19,384)
High Income Portfolio
1,917,187 shares (cost $21,472)
Equity-Income Portfolio
4,804,452 shares (cost $71,360)
Growth Portfolio
3,114,103 shares (cost $68,697)
Overseas Portfolio
1,539,261 shares (cost $24,059)
Asset Manager Portfolio
3,137,752 shares (cost $44,874)
Investment Grade Bond Portfolio
1,282,434 shares (cost $14,901)
Index 500 Portfolio
105,609 shares (cost $6,885)
Contrafund Portfolio
388,952 shares (cost $5,225)
PUTNAM'S PCM:
Diversified Income Fund
637,861 shares (cost $6,466) $7,036
Growth and Income Fund
536,994 shares (cost $9,984) $11,529
Utilities Growth and Income Fund
268,645 shares (cost $3,148) $3,568
Voyager Fund
633,805 shares (cost $16,013) $19,331
Asia Pacific Growth Fund
76,773 shares (cost $765) $785
New Opportunities Fund
240,228 shares (cost $3,441)
NORTHSTAR'S:
Income and Growth Fund
40,273 shares (cost $461)
Growth Fund
17,484 shares (cost $213)
Multi-Sector Bond Fund
48,730 shares (cost $248)
---------- ---------- ---------- ---------- ----------
Total Assets $7,036 $11,529 $3,568 $19,331 $785
========= ========= ========= ========= =========
LIABILITIES AND POLICYOWNERS' EQUITY:
Due to Northwestern National Life Insurance Company
for accrued mortality and expense risks $ 8 $ 12 $ 4 $ 26 $ -
Contract Owners' Equity 7,028 11,517 3,564 19,305 785
---------- ---------- ---------- ---------- ----------
Total Liabilities and Policyowners' Equity $7,036 $11,529 $3,568 $19,331 $785
====== ======= ====== ======= =======
Units Outstanding: 632,420.015 859,405.339 294,096.722 1,370,458.827 77,406.519
Net Asset Value per Unit:
Select*Annuity II
Tax-Qualified $11.574062 $13.669050 $12.590873 $14.531254 $ -
Non-Tax Qualified $11.574062 $13.669050 $12.590873 $14.531254 $ -
Select*Annuity III
Tax-Qualified $11.066646 $13.316238 $12.007195 $13.927167 $10.136110
Non-Tax Qualified $11.066646 $13.316238 $12.007195 $13.927167 $10.136110
</TABLE>
The accompanying notes are an integral part of the financial statements.
iv
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES, CONTINUED
<TABLE>
<CAPTION>
Putnam's PCM Northstar's
New Income Northstar's Northstar's
Opportunities and Growth Growth Multi-Sector Bond
ASSETS: Fund Fund Fund Fund Total
- -------
Investments in mutual funds at market value: ------------- ------------ ------------ ------------ ------------
NORTHWESTERN'S:
<S> <C> <C> <C> <C> <C>
Select Capital Growth Fund, Inc.
0 shares (cost $-) $-
Select Managed Fund, Inc.
0 shares (cost $-) -
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
19,384,402 shares (cost $19,384) 19,384
High Income Portfolio
1,917,187 shares (cost $21,472) 23,102
Equity-Income Portfolio
4,804,452 shares (cost $71,360) 92,582
Growth Portfolio
3,114,103 shares (cost $68,697) 90,932
Overseas Portfolio
1,539,261 shares (cost $24,059) 26,244
Asset Manager Portfolio
3,137,752 shares (cost $44,874) 49,545
Investment Grade Bond Portfolio
1,282,434 shares (cost $14,901) 16,005
Index 500 Portfolio
105,609 shares (cost $6,885) 7,996
Contrafund Portfolio
388,952 shares (cost $5,225) 5,360
PUTNAM'S PCM:
Diversified Income Fund
637,861 shares (cost $6,466) 7,036
Growth and Income Fund
536,994 shares (cost $9,984) 11,529
Utilities Growth and Income Fund
268,645 shares (cost $3,148) 3,568
Voyager Fund
633,805 shares (cost $16,013) 19,331
Asia Pacific Growth Fund
76,773 shares (cost $765) 785
New Opportunities Fund
240,228 shares (cost $3,441) $3,755 3,755
NORTHSTAR'S:
Income and Growth Fund
40,273 shares (cost $461) $459 459
Growth Fund
17,484 shares (cost $213) $202 202
Multi-Sector Bond Fund
48,730 shares (cost $248) $250 250
---------- ---------- ---------- ---------- ----------
Total Assets $3,755 $459 $202 $250 $378,065
====== ==== ==== ==== ========
LIABILITIES AND POLICYOWNERS' EQUITY:
Due to Northwestern National Life Insurance Company
for accrued mortality and expense risks $ 9 $ 1 $ - $- $ 414
Contract Owners' Equity 3,746 458 202 250 377,651
---------- ---------- ---------- ---------- ----------
Total Liabilities and Policyowners' Equity $3,755 $459 $202 $250 $378,065
====== ==== ==== ==== ========
Units Outstanding: 279,169.636 38,118.380 16,298.318 21,963.823 22,791,039.459
Net Asset Value per Unit:
Select*Annuity II
Tax-Qualified $ - $ - $ - $ -
Non-Tax Qualified $ - $ - $ - $ -
Select*Annuity III
Tax-Qualified $13.350615 $12.022356 $12.371427 $11.388122
Non-Tax Qualified $13.350615 $12.022356 $12.371427 $11.388122
</TABLE>
The accompanying notes are an integral part of the financial statements.
v
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
STATEMENT OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
(In Thousands)
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1993
------------ ----------- ------------
<S> <C> <C> <C>
Net investment income:
Reinvested dividend income ............... $ 5,942 $ 3,970 $ 3,263
Reinvested capital gains ................. 3,314 6,860 1,162
Administrative Expenses ................. (4,764) (3,286) (2,078)
--------- --------- ---------
Net investment income and capital gains 4,492 7,544 2,347
--------- --------- ---------
Realized and unrealized gains (losses):
Net realized gains on
redemptions of fund shares ............. 9,391 3,754 2,426
Increase (decrease) in unrealized
appreciation of investments ............ 51,022 (13,578) 14,384
--------- --------- ---------
Net realized and unrealized gains (losses) 60,413 (9,824) 16,810
--------- --------- ---------
Net additions (reductions) from operations 64,905 (2,280) 19,157
--------- --------- ---------
Contract Owners' transactions:
Net purchase payments .................... 90,585 88,469 59,995
Surrenders ............................... (21,291) (13,237) (9,072)
Transfers between Sub-Accounts
and Fixed Account ..................... (913) (508) 539
Annuity payments ......................... (958) (1,265) (602)
Transfers (from) to required reserves .... (146) 17 (91)
--------- --------- ---------
Net additions for Contract Owners' transactions 67,277 73,476 50,769
--------- --------- ---------
Net additions for the year......... 132,182 71,196 69,926
Contract Owners' Equity, beginning of the year 245,469 174,273 104,347
--------- --------- ---------
Contract Owners' Equity, end of the year ... $377,651 $245,469 $174,273
======== ======== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
vi
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ORGANIZATION AND CONTRACTS:
NWNL Select Variable Account (the "Account") is a separate account of
Northwestern National Life Insurance Company ("NWNL" or "Northwestern"), a
wholly owned subsidiary of 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 (see note 4):
<TABLE>
<CAPTION>
FIDELITY'S VIPF AND VIPF II: PUTNAM'S PCM: NORTHSTAR FUNDS:
---------------------------- ------------- ----------------
<S> <C> <C>
Money Market Portfolio Diversified Income Fund Growth Fund
High Income Portfolio Growth and Income Fund Income and Growth Fund
Equity-Income Portfolio Utilities Growth and Income Fund Multi-Sector Bond Fund
Growth Portfolio Voyager Fund
Overseas Portfolio Asia Pacific Growth Fund
Asset Manager Portfolio New Opportunities Fund
Investment Grade Bond Portfolio
Index 500 Portfolio
Contrafund Portfolio
</TABLE>
Northstar Investment Management Corporation, an affiliate of NWNL, is the
investment adviser for the three Northstar Funds and is paid fees for its
services by the Funds. Fidelity Management & Research Company is the
investment adviser for Fidelity's VIPF and VIPF II and is paid fees for its
services by the VIPF and VIPF II portfolios. Putnam Investment Management,
Inc. is the investment adviser for the PCM Funds and is paid fees for its
services by the PCM Funds. See the related Funds' prospectuses for further
information. On May 3, 1993, NWNL added the Sub-Accounts investing in shares
of Index 500 Portfolio. On January 6, 1994 NWNL established sub-accounts
investing in the PCM Funds which were made available to purchasers of NWNL's
Select*Annuity III variable annuity contracts. On May 2, 1994, Sub-Accounts
investing in the PCM Funds were also made available to purchasers of NWNL's
Select*Annuity II variable annuity contracts. On December 30, 1994,
Sub-Accounts investing in the Northstar Funds were made available to
purchasers of NWNL's Select*Annuity III variable annuity contracts. On April
30, 1995, Sub-Accounts investing in the VIPF II Contrafund Portfolio, the PCM
Asia Pacific Growth Fund and the PCM New Opportunities Fund were made
available to purchasers of NWNL's Select*Annuity III variable annuity
contracts.
SECURITIES VALUATION TRANSACTIONS AND RELATED INVESTMENT INCOME:
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:
Under current tax law, the income, gains and losses from the separate account
investments are not taxable to either the Account or NWNL.
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.
Certain charges are made by NWNL to Contract Owners' Variable Accumulation
Values in the Account in accordance with the terms of the Contracts. These
charges may include: an annual administrative/contract charge of $30 from
each contract on the anniversary date or at the time of surrender, if
surrender is at a time other than the anniversary date; a daily
administrative charge; and a daily charge for mortality and expense risk
assumed by NWNL. NWNL bears the risk of adverse mortality experience and any
costs for sales and administrative services and expenses which exceed these
periodic charges.
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.
4. NORTHWESTERN'S SELECT FUNDS:
On May 1, 1995, Select Capital Growth Fund, Inc. ("SCG") and Select Managed
Fund, Inc. ("SMF") were liquidated, and Contract Owners' values in the
Sub-Accounts investing in SCG and SMF were transferred to the Sub-Accounts
investing in shares of the VIPF Growth Portfolio and VIPF II Asset Manager
Portfolio, respectively.
vii
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
5. INVESTMENTS:
The net realized gains (losses) on redemptions of fund shares for the years
ended December 31, 1995, 1994 and 1993, were as follows, (in thousands):
<TABLE>
<CAPTION>
SELECT
CAPITAL GROWTH
TOTAL FUND, INC.
--------------------------------------------- ----------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $83,108 $49,854 $25,718 $6,333 $1,992 $1,749
Cost ............... 73,717 46,100 23,292 6,809 2,111 1,738
--------- --------- --------- --------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ..... $ 9,391 $3,754 $2,426 ($476) ($119) $11
======== ====== ====== ===== ===== ===
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF
HIGH INCOME EQUITY-INCOME
PORTFOLIO PORTFOLIO
----------------------------------------- ----------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
--------- --------- --------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $5,766 $4,887 $1,962 $7,777 $5,135 $1,901
Cost ............... 5,414 4,460 1,419 5,469 4,129 1,570
--------- --------- --------- --------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ...... $ 352 $ 427 $ 543 $2,308 $1,006 $331
======= ====== ======= ====== ====== ====
FIDELITY'S VIPF II FIDELITY'S VIPF II
ASSET MANAGER INVESTMENT GRADE
PORTFOLIO BOND PORTFOLIO
---------------------------------------- ------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
--------- --------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $9,653 $2,543 $337 $5,108 $5,246 $1,759
Cost ............... 8,857 2,270 285 4,997 5,342 1,648
--------- --------- --------- --------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ...... $ 796 $ 273 $ 52 $ 111 ($96) $ 111
========= ========= ========= ======== ========= =======
</TABLE>
viii
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
SELECT FIDELITY'S VIPF
MANAGED MONEY MARKET
FUND, INC. PORTFOLIO
--------------------------------------------- ---------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $6,137 $2,175 $3,098 $16,985 $15,801 $9,347
Cost ............... 6,129 2,035 2,858 16,985 15,801 9,347
--------- --------- --------- --------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ..... $ 8 $ 140 $ 240 $ - $ - $ -
====== ======= ===== ===== ========= ========
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF
GROWTH OVERSEAS
PORTFOLIO PORTFOLIO
--------------------------------------------- ----------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $11,631 $6,277 $3,178 $6,179 $3,143 $2,269
Cost ............... 7,195 4,716 2,113 5,293 2,551 2,197
--------- --------- --------- --------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ...... $4,436 $1,561 $1,065 $ 886 $ 592 $ 72
====== ====== ===== ===== ====== ========
<CAPTION>
FIDELITY'S VIPF II FIDELITY'S VIPF II
INDEX 500 CONTRAFUND
PORTFOLIO PORTFOLIO
--------------------------------------------- ---------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $1,802 $355 $118 $140 $- $-
Cost ............... 1,542 352 117 119 - -
--------- --------- --------- --------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ...... $ 260 $3 $ 1 $ 21 $- $-
========= ========= ========= ========= ========= =========
</TABLE>
ix
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
5. INVESTMENTS (CONTINUED):
The net realized gains (losses) on redemptions of fund shares for the years
ended December 31, 1995, 1994 and 1993, were as follows, (in thousands):
<TABLE>
<CAPTION>
PUTNAM'S PCM PUTNAM'S PCM
DIVERSIFIED INCOME GROWTH AND INCOME
FUND FUND
--------------------------------------------- ----------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
---------- ---------- --------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $1,414 $500 $- $1,006 $400 $-
Cost................ 1,334 515 - 876 407 -
--------- --------- --------- ---------- --------- -----------
Net realized gains
(losses) on
redemptions of
fund shares ...... $ 80 ($ 15) $- $ 130 ($ 7) $-
========= ========= ========= ========= ========= =========
<CAPTION>
PUTNAM'S PCM PUTNAM'S PCM
ASIA PACIFIC NEW OPPORTUNITIES
GROWTH FUND FUND
--------------------------------------------- ----------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
--------- --------- --------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $96 $- $- $321 $- $-
Cost ............... 96 - - 262 - -
--------- --------- --------- ---------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ...... $- $- $- $ 59 $- $-
========= ========= ========= ========= ========= ========
</TABLE>
NORTHSTAR'S
MULTI-SECTOR BOND
FUND
---------------------------------------------
Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993
--------- --------- ---------
Proceeds from
redemptions ...... $37 $- $-
Cost ............... 37 - -
--------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ...... $- $- $-
========= ========= ========
x
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PUTNAM'S PCM
UTILITIES PUTNAM'S PCM
GROWTH AND INCOME VOYAGER
FUND FUND
---------------------------------------------- ---------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
--------- --------- --------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $548 $231 $- $2,124 $1,169 $-
Cost................ 493 240 - 1,764 1,171 -
--------- --------- --------- --------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ...... $ 55 ($ 9) $- $ 360 ($ 2) $-
========= ========= ========= ========= ======== =========
<CAPTION>
NORTHSTAR'S NORTHSTAR'S
INCOME AND GROWTH GROWTH
FUND FUND
--------------------------------------------- ---------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
---------- --------- --------- --------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $36 $- $- $15 $- $-
Cost ............... 34 - - 12 - -
---------- --------- --------- --------- --------- -----------
Net realized gains
(losses) on
redemptions of
fund shares ...... $ 2 $- $- $ 3 $- $-
========= ======== ========= ========= ========= =========
</TABLE>
xi
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
6. CONTRACT OWNERS' TRANSACTIONS:
Unit transactions in each Sub-Account during the years ended December 31,
1995, 1994 and 1993, were as follows:
<TABLE>
<CAPTION>
SELECT
CAPITAL SELECT
GROWTH MANAGED
FUND, INC. FUND, INC.
---------------------------------------- ----------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
----------- ----------- ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year ............ 199,602.754 236,351.642 271,515.708 385,981.897 495,999.026 638,164.404
Units purchased ................. 2,170.070 9,956.716 15,436.126 3,513.590 20,863.027 37,212.420
Units redeemed .................. (9,983.707) (28,276.780) (34,147.193) (20,308.314) (74,417.627) (110,890.381)
Units transferred between
Sub-Accounts and/or
Fixed Account................. (191,789.117) (18,428.824) (16,452.999) (369,187.173) (56,462.529) (68,487.417)
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of year .................. - 199,602.754 236,351.642 - 385,981.897 495,999.026
=========== =========== =========== =========== =========== ===========
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF
GROWTH OVERSEAS
PORTFOLIO PORTFOLIO
---------------------------------------- -----------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ----------- ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year............. 3,085,291.094 2,019,876.667 1,448,782.791 1,680,499.232 819,347.654 456,485.166
Units purchased ................. 769,630.128 1,070,554.250 581,545.451 381,191.472 724,437.332 286,453.475
Units redeemed .................. (279,858.707) (153,211.193) (100,708.718) (120,861.323) (55,236.857) (38,568.188)
Units transferred between
Sub-Accounts and/or
Fixed Account................. 429,620.325 148,071.370 90,257.143 (119,715.837) 191,951.103 114,977.201
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of year.................. 4,004,682.840 3,085,291.094 2,019,876.667 1,821,113.544 1,680,499.232 819,347.654
============= ============= ============= ============= ============= ===========
</TABLE>
xii
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF
MONEY MARKET HIGH INCOME
PORTFOLIO PORTFOLIO
-------------------------------------------- -----------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------ ------------ ------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year ............ 1,183,020.139 827,229.012 987,749.178 1,018,223.635 798,986.176 441,254.684
Units purchased ................. 1,210,518.082 947,248.323 434,478.460 405,708.793 421,702.041 352,007.382
Units redeemed .................. (120,871.417) (125,836.730) (133,871.819) (74,441.049) (62,304.904) (24,288.804)
Units transferred between
Sub-Accounts and/or
Fixed Account................. (664,750.256) (465,620.466) (461,126.807) 19,155.324 (140,159.678) 30,012.914
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of year .................. 1,607,916.548 1,183,020.139 827,229.012 1,368,646.703 1,018,223.635 798,986.176
============= ============= =========== ============= ============= ===========
</TABLE>
FIDELITY'S VIPF
EQUITY-INCOME
PORTFOLIO
-------------------------------------------
Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993
----------- ------------- -------------
Units outstanding,
beginning of year ............ 257,109.719 2,319,003.995 1,655,722.841
Units purchased ................. 101,417.898 933,801.967 660,349.935
Units redeemed .................. 259,661.010) (196,100.661) (114,399.458)
Units transferred between
Sub-Accounts and/or
Fixed Account................. 338,201.936 200,404.418 117,330.677
----------- ----------- -----------
Units outstanding,
end of year .................. 437,068.543 3,257,109.719 2,319,003.995
=========== ============= =============
<TABLE>
<CAPTION>
FIDELITY'S VIPF II FIDELITY'S VIPF II
ASSET MANAGER INVESTMENT GRADE
PORTFOLIO BOND PORTFOLIO
------------------------------------------- ---------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year............. 3,382,528.684 1,727,140.831 522,703.230 993,890.531 729,334.990 352,117.005
Units purchased ................. 542,582.388 1,624,947.759 999,767.151 723,466.175 651,757.704 487,892.585
Units redeemed .................. (270,565.326) (115,058.014) (25,959.676) (49,436.532) (69,080.787) (32,664.573)
Units transferred between
Sub-Accounts and/or
Fixed Account................. 6,115.655 145,498.108 230,630.126 (383,131.821) (318,121.376) (78,010.027)
------------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of year.................. 3,660,661.401 3,382,528.684 1,727,140.831 1,284,788.353 993,890.531 729,334.990
============= ============= ============= ============= =========== ===========
</TABLE>
<PAGE>
FIDELITY'S VIPF II
INDEX 500
PORTFOLIO
---------------------------------------
Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993
----------- ----------- -----------
Units outstanding,
beginning of year............. 263,727.290 102,493.314 -
Units purchased ................. 230,822.310 139,102.547 89,685.213
Units redeemed .................. (16,245.621) (12,679.127) (5.659)
Units transferred between
Sub-Accounts and/or
Fixed Account................. 97,675.628 34,810.556 12,813.760
----------- ----------- -----------
Units outstanding,
end of year.................. 575,979.607 263,727.290 102,493.314
=========== =========== ===========
xiii
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
6. CONTRACT OWNERS' TRANSACTIONS (CONTINUED):
Unit transactions in each Sub-Account during the years ended December 31,
1995, 1994 and 1993, were as follows:
<TABLE>
<CAPTION>
FIDELITY'S VIPF II PUTNAM'S PCM
CONTRAFUND DIVERSIFIED INCOME
PORTFOLIO FUND
------------------------------------- ----------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year ............ - - - 350,570.940 - -
Units purchased ................. 349,595.850 - - 342,422.647 364,540.968 -
Units reedeemed ................. (2,747.245) - - (18,550.684) (4,879.794) -
Units transferred between
Sub-Accounts and/or
Fixed Account ................ 93,995.736 - - (42,022.888) (9,090.234) -
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of year................... 440,844.341 - - 632,420.015 350,570.940 -
=========== =========== =========== =========== =========== ===========
<CAPTION>
PUTNAM'S PCM PUTNAM'S PCM
ASIA PACIFIC NEW OPPORTUNITIES
GROWTH FUND FUND
------------------------------------- -------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year ............ - - - - - -
Units purchased ................. 59,171.003 - - 191,561.789 - -
Units reedeemed ................. (164.483) - - (1,607.939) - -
Units transferred between
Sub-Accounts and/or
Fixed Account ................ 18,399.999 - - 89,215.786 - -
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of year................. 77,406.519 - - 279,169.636 - -
========== =========== =========== =========== =========== ===========
</TABLE>
xiv
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PUTNAM'S PCM PUTNAM'S PCM
GROWTH & INCOME UTILITIES GROWTH &
FUND INCOME FUND
---------------------------------------- ---------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year ............ 263,273.051 - - 120,645.331 - -
Units purchased ................. 411,254.359 211,628.753 - 109,716.900 104,433.541 -
Units reedeemed ................. (19,519.533) (6,596.040) - (6,323.494) (1,165.178) -
Units transferred between
Sub-Accounts and/or
Fixed Account ................ 204,397.462 58,240.338 - 70,057.985 17,376.968 -
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of year................... 859,405.339 263,273.051 - 294,096.722 120,645.331 -
=========== =========== =========== =========== =========== ===========
</TABLE>
PUTNAM'S PCM
VOYAGER
FUND
---------------------------------------
Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993
----------- ----------- -----------
Units outstanding,
beginning of year ............ 423,202.264 - -
Units purchased ................. 702,903.236 305,026.287 -
Units reedeemed ................. (23,265.910) (4,175.151) -
Units transferred between
Sub-Accounts and/or
Fixed Account ................ 267,619.237 122,351.128 -
----------- ----------- -----------
Units outstanding,
end of year................... 1,370,458.827 423,202.264 -
============= =========== ===========
<TABLE>
<CAPTION>
NORTHSTAR'S NORTHSTAR'S
INCOME & GROWTH GROWTH
FUND FUND
--------------------------------------- ----------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------ --------- ----------- ------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year ............ - - - - - -
Units purchased ................. 36,112.093 - - 15,762.759 - -
Units reedeemed ................. (76.821) - - (272.010) - -
Units transferred between
Sub-Accounts and/or
Fixed Account ................ 2,083.108 - - 807.569 - -
----------- --------- ----------- ----------- ----------- -----------
Units outstanding,
end of year................. 38,118.380 - - 16,298.318 - -
========== ========= ======== ========== ======== ========
</TABLE>
<PAGE>
NORTHSTAR'S
MULTI-SECTOR BOND
FUND
---------------------------------------
Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993
----------- ----------- -----------
Units outstanding,
beginning of year ............ - - -
Units purchased ................. 21,443.118 - -
Units reedeemed ................. (0.504) - -
Units transferred between
Sub-Accounts and/or
Fixed Account ................ 521.209 - -
---------- ----------- ----------
Units outstanding,
end of year................. 21,963.823 - -
========== ========== ==========
xv
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
7. STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY:
Operations and changes in Contract Owners' equity for the year ended December
31, 1995 were as follows, (in thousands):
<TABLE>
<CAPTION>
Select Fidelity's Fidelity's Fidelity's Fidelity's
Capital Select VIPF VIPF VIPF VIPF
Growth Managed Money Market High Income Equity-Income Growth
Total Fund, Inc. Fund, Inc. Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income:
Reinvested dividend income.... $ 5,942 $ - $ - $ 889 $ 1,195 $ 1,757 $ 316
Reinvested capital gains ...... 3,314 - - - - 2,956 -
Administrative expenses....... (4,764) (31) (37) (258) (362) (1,160) (1,186)
--------- --------- --------- --------- --------- --------- ---------
Net investment income (loss)
and capital gains ... 4,492 (31) (37) 631 833 3,553 (870)
--------- --------- --------- --------- --------- --------- ---------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares.. 9,391 (476) 8 - 352 2,308 4,436
Increase (decrease) in unrealized
appreciation of investments . 51,022 671 191 - 2,123 14,818 17,432
--------- --------- --------- --------- --------- --------- ---------
Net realized and
unrealized gains (losses) 60,413 195 199 - 2,475 17,126 21,868
--------- --------- --------- --------- --------- --------- ---------
Net additions
from operations.... 64,905 164 162 631 3,308 20,679 20,998
--------- --------- --------- --------- --------- --------- ---------
Contract Owners' transactions:
Net purchase payments......... 90,585 54 55 13,020 4,741 15,132 11,039
Surrenders .................... (21,291) (276) (303) (1,520) (1,153) (5,022) (6,438)
Transfers between Sub-Accounts
and/or Fixed Account........ (913) (5,856) (5,808) (7,383) 125 5,000 8,840
Annuity payments .............. (958) (34) (1) (40) (110) (147) (264)
Transfers (from) to required
reserves .................... (146) (147) (3) (1) (2) (2) 24
--------- --------- --------- --------- --------- --------- ---------
Net additions (reductions) for
Contract Owners' transactions 67,277 (6,259) (6,060) 4,076 3,601 14,961 13,201
--------- --------- --------- --------- --------- --------- ---------
Net additions (reductions)
for the year......... 132,182 (6,095) (5,898) 4,707 6,909 35,640 34,199
Contract Owners' Equity,
beginning of the year ........ 245,469 6,095 5,898 14,657 16,169 56,844 56,635
--------- --------- --------- --------- --------- --------- ---------
Contract Owners' Equity,
end of the year .............. $377,651 $ - $ - $19,364 $23,078 $92,484 $90,834
======== ========= ========= ======= ======= ======= =======
</TABLE>
xvi
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
Putnam's
Fidelity's Putnam's Putnam's PCM
Fidelity's Fidelity's VIPF II Fidelity's Fidelity's PCM PCM Utilities
VIPF VIPF II Investment VIPF II VIPF II Diversified Growth & Growth &
Overseas Asset Manager Grade Bond Index 500 Contrafund Income Income Income
Portfolio Portfolio Portfolio Portfolio Portfolio Fund Fund Fund
-------- --------- --------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net investment income:
Reinvested dividend income.... $ 92 $ 842 $ 380 $ 47 $ 22 $ 193 $ 108 $ 73
Reinvested capital gains ...... 92 - - 6 45 - 61 -
Administrative expenses....... (382) (701) (187) (69) (23) (72) (90) 29)
--------- --------- --------- --------- --------- --------- --------- -------
Net investment income (loss)
and capital gains ... (198) 141 193 (16) 44 121 79 44
--------- --------- --------- --------- --------- --------- --------- -------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares.. 886 796 111 260 21 80 130 55
Increase (decrease) in unrealized
appreciation of investments . 1,317 5,644 1,533 1,091 135 580 1,552 430
-------- --------- --------- --------- --------- --------- --------- -------
Net realized and
unrealized gains (losses) 2,203 6,440 1,644 1,351 156 660 1,682 485
--------- --------- --------- --------- --------- --------- --------- -------
Net additions
from operations.... 2,005 6,581 1,837 1,335 200 781 1,761 529
--------- --------- --------- --------- --------- --------- --------- -------
Contract Owners' transactions:
Net purchase payments......... 4,248 5,759 7,616 2,858 4,088 3,564 4,937 1,190
Surrenders .................... (1,631) (3,440) (577) (167) (15) (187) (223) (54)
Transfers between Sub-Accounts
and/or Fixed Account........ (1,843) 481 (4,104) 1,251 1,098 (437) 2,415 785
Annuity payments .............. (128) (125) (25) (27) (17) - (1) (12)
Transfers (from) to required
reserves .................... (2) (3) (2) - - - (2) -
--------- --------- --------- --------- --------- --------- --------- -------
Net additions (reductions) for
Contract Owners' transactions . 644 2,672 2,908 3,915 5,154 2,940 7,126 1,909
--------- --------- --------- --------- --------- --------- --------- -------
Net additions (reductions)
for the year......... 2,649 9,253 4,745 5,250 5,354 3,721 8,887 2,438
Contract Owners' Equity,
beginning of the year ........ 23,567 40,239 11,242 2,737 - 3,307 2,630 1,126
--------- --------- --------- --------- --------- --------- --------- -------
Contract Owners' Equity,
end of the year .............. $26,216 $49,492 $15,987 $7,987 $5,354 $7,028 $11,517 $3,564
======= ======= ======= ====== ====== ====== ======= ======
</TABLE>
xvii
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
7. STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY (CONTINUED):
Operations and changes in Contract Owners' equity for the year ended December
31, 1995 were as follows, (in thousands):
<TABLE>
<CAPTION>
Putnam's Putnam's
Putnam's PCM PCM Northstar's Northstar's
PCM Asia Pacific New Income and Northstar's Multi-Sector
Voyager Growth Opportunities Growth Growth Bond
Fund Fund Fund Fund Fund Fund
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net investment income:
Reinvested dividend income....... $ 18 $ - $ - $ 5 $ 1 $4
Reinvested capital gains ......... 132 - - 10 12 -
Administrative expenses.......... (157) (4) (13) (1) (1) (1)
--------- --------- --------- --------- --------- ---------
Net investment income (loss)
and capital gains ........... (7) (4) (13) 14 12 3
--------- --------- --------- --------- --------- ---------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares .... 360 - 59 2 3 -
Increase (decrease) in unrealized
appreciation of investments .... 3,182 20 314 (2) (11) 2
--------- --------- --------- --------- --------- ---------
Net realized and
unrealized gains (losses) .. 3,542 20 373 - (8) 2
--------- --------- --------- --------- --------- ---------
Net additions
from operations............ 3,535 16 360 14 4 5
--------- --------- --------- --------- --------- ---------
Contract Owners' transactions:
Net purchase payments ............ 8,520 587 2,326 421 191 239
Surrenders ....................... (272) (1) (8) (1) (3) -
Transfers between Sub-Accounts
and/or Fixed Account ........... 3,218 183 1,082 24 10 6
Annuity payments ................. (15) - (12) - - -
Transfers (from) to required
reserves ....................... (4) - (2) - - -
--------- --------- --------- --------- --------- ---------
Net additions (reductions) for
Contract Owners' transactions 11,447 769 3,386 444 198 245
--------- --------- --------- --------- --------- ---------
Net additions (reductions)
for the year ................. 14,982 785 3,746 458 202 250
Contract Owners' Equity,
beginning of the year ........... 4,323 - - - - -
--------- --------- --------- --------- --------- ---------
Contract Owners' Equity,
end of the year ................. $19,305 $785 $3,746 $458 $202 $250
========= ========= ========= ========= ========= =========
</TABLE>
xviii
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
[LOGO] 20 Washington Avenue South
Minneapolis, Minnesota 55401
(612) 372-5507
38501i
(Select II/III)
