NWNL SELECT VARIABLE ACCOUNT
SEMI-ANNUAL REPORT
FOR THE PERIOD ENDED
JUNE 30, 1996
(UNAUDITED)
[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>
NWNL SELECT VARIABLE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
(in Thousands, Except Share and Unit Data)
(UNAUDITED)
<TABLE>
<CAPTION>
Fidelity's VIPF Fidelity's VIPF Fidelity's VIPF Fidelity's VIPF
ASSETS: Money Market High Income Equity-Income Growth
- ------- Portfolio Portfolio Portfolio Portfolio
--------------- ---------------- -------------- --------------
<S> <C> <C> <C> <C>
Investments in mutual funds at market value:
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
23,764,168 shares (cost $23,764) $23,764
High Income Portfolio
2,236,574 shares (cost $25,311) $26,346
Equity-Income Portfolio
5,557,055 shares (cost $87,938) $108,251
Growth Portfolio
3,604,935 shares (cost $84,338) $108,364
Overseas Portfolio
1,715,570 shares ($27,398)
Asset Manager Portfolio
3,276,613 (cost $47,393)
Investment Grade Bond Portfolio
1,395,504 shares (cost $16,325)
Index 500 Portfolio
165,325 shares (cost $11,786)
Contrafund Portfolio
888,057 shares (cost $12,473)
PUTNAM'S PCM:
Diversified Income Fund
736,459 shares (cost $7,641)
Growth and Income Fund
930,439 shares (cost $18,816)
Utilities Growth and Income Fund
374,885 shares (cost $4,731)
Voyager Fund
1,048,046 shares (cost $29,518)
Asia Pacific Growth Fund
217,920 shares (cost $2,287)
New Opportunities Fund
779,693 shares (cost $12,975)
NORTHSTAR'S:
Income and Growth Fund
90,366 shares (cost $1,040)
Growth Fund
153,968 shares (cost $2,180)
Multi-Sector Bond Fund
232,940 shares (cost $1,200)
---------- ---------- ---------- ----------
Total Assets $23,764 $26,346 $108,251 $108,364
======= ======= ======== ========
LIABILITIES AND CONTRACT OWNERS' EQUITY:
- ----------------------------------------
Due to Northwestern National Life Insurance Company
for contract charges and reserve transfers $27 $26 $113 104
Contract Owners' Equity 23,737 26,320 108,138 108,260
---------- ---------- ---------- ----------
Total Liabilities and Contract Owners' Equity $23,764 $26,346 $108,251 $108,364
======= ======= ======== ========
Units Outstanding: 1,992,543.518 1,526.363.684 5,224,069.619 4,580,753.123
Net Asset Value per Unit:
Select*Annuity II
Tax-Qualified $14.371387 $22.527168 $27.171219 $30.956654
Non-Tax Qualified $14.371387 $22.527168 $27.171219 $30.956654
Select*Annuity III
Tax-Qualified $10.938862 $12.206842 $14.726589 $14.472317
Non-Tax Qualified $10.938862 $12.206842 $14.726589 $14.472317
</TABLE>
The accompanying notes are an integral part of the financial statements.
i
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES, CONTINUED
(UNAUDITED)
<TABLE>
<CAPTION>
Fidelity's
Fidelity's VIPF II Fidelity's Fidelity's
Fidelity's VIPF VIPF II Investment VIPF II VIPF II
ASSETS: Overseas Asset Manager Grade Bond Index 500 Contrafund
- ------- Portfolio Portfolio Portfolio Portfolio Portfolio
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Investments in mutual funds at market value:
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
23,764,168 shares (cost $23,764)
High Income Portfolio
2,236,574 shares (cost $25,311)
Equity-Income Portfolio
5,557,055 shares (cost $87,938)
Growth Portfolio
3,604,935 shares (cost $84,338)
Overseas Portfolio
1,715,570 shares ($27,398) $30,674
Asset Manager Portfolio
3,276,613 (cost $47,393) $51,214
Investment Grade Bond Portfolio
1,395,504 shares (cost $16,325) $16,300
Index 500 Portfolio
165,325 shares (cost $11,786) $13,213
Contrafund Portfolio
888,057 shares (cost $12,473) $13,125
PUTNAM'S PCM:
Diversified Income Fund
736,459 shares (cost $7,641)
Growth and Income Fund
930,439 shares (cost $18,816)
Utilities Growth and Income Fund
374,885 shares (cost $4,731)
Voyager Fund
1,048,046 shares (cost $29,518)
Asia Pacific Growth Fund
217,920 shares (cost $2,287)
New Opportunities Fund
779,693 shares (cost $12,975)
NORTHSTAR'S:
Income and Growth Fund
90,366 shares (cost $1,040)
Growth Fund
153,968 shares (cost $2,180)
Multi-Sector Bond Fund
232,940 shares (cost $1,200)
---------- ---------- ---------- ---------- ----------
Total Assets $30,674 $51,214 $16,300 $13,213 $13,125
======= ======= ======= ======= =======
LIABILITIES AND CONTRACT OWNERS' EQUITY:
- ----------------------------------------
Due to Northwestern National Life Insurance Company
for contract charges and reserve transfers 29 51 18 12 14
Contract Owners' Equity 30,645 51,163 16,282 13,201 13,111
---------- ---------- ---------- ---------- ----------
Total Liabilities and Contract Owners' Equity $30,674 $51,214 $16,300 $13,213 $13,125
======= ======= ======= ======= =======
Units Outstanding: 2,043,327.528 3,640,620.353 1,359,615.273 876,575.330 1,005,707.323
Net Asset Value per Unit:
Select*Annuity II
Tax-Qualified $18.186106 $15.957582 $13.692926 $15.706759 $-
Non-Tax Qualified $18.186106 $15.957582 $13.692926 $15.706759 $-
Select*Annuity III
Tax-Qualified $11.478245 $11.147840 $10.723286 $14.720651 $13.013360
Non-Tax Qualified $11.478245 $11.147840 $10.723286 $14.720651 $13.013360
</TABLE>
The accompanying notes are an integral part of the financial statements.
ii
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES, CONTINUED
June 30, 1996
(in Thousands, Except Share and Unit Data)
(UNAUDITED)
<TABLE>
<CAPTION>
Putnam's PCM Putnam's PCM Putnam's PCM
Diversified Growth and Utilities Growth Putnam's PCM
ASSETS: Income Income and Income Voyager
- ------- Fund Fund Fund Fund
------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Investments in mutual funds at market value:
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
23,764,168 shares (cost $23,764)
High Income Portfolio
2,236,574 shares (cost $25,311)
Equity-Income Portfolio
5,557,055 shares (cost $87,938)
Growth Portfolio
3,604,935 shares (cost $84,338)
Overseas Portfolio
1,715,570 shares (cost $27,398)
Asset Manager Portfolio
3,276,613 shares (cost $47,393)
Investment Grade Bond Portfolio
1,395,504 shares (cost $16,325)
Index 500 Portfolio
165,325 shares (cost $11,786)
Contrafund Portfolio
888,057 shares (cost $12,473)
PUTNAM'S PCM:
Diversified Income Fund
736,459 shares (cost $7,641) $7,733
Growth and Income Fund
930,439 shares (cost $18,816) $20,460
Utilities Growth and Income Fund
374,885 shares (cost $4,731) $5,061
Voyager Fund
1,048,046 shares (cost $29,518) $33,789
Asia Pacific Growth Fund
217,920 shares (cost $2,287)
New Opportunities Fund
779,693 shares (cost $12,975)
NORTHSTAR'S:
Income and Growth Fund
90,366 shares (cost $1,040)
Growth Fund
153,968 shares (cost $2,180)
Multi-Sector Bond Fund
232,940 shares (cost $1,200)
---------- ---------- ---------- ----------
Total Assets $7,733 $20,460 $5,061 $33,789
====== ======= ====== =======
LIABILITIES AND POLICYOWNERS' EQUITY:
- -------------------------------------
Due to Northwestern National Life Insurance Company
for accrued mortality and expense risks $ 8 $ 21 $ 5 $ 37
Contract Owners' Equity 7,725 20,439 5,056 33,752
---------- ---------- ---------- ----------
Total Liabilities and Policyowners' Equity $7,733 $20,460 $5,061 $33,789
====== ======= ====== =======
Units Outstanding: 690,748.215 1,408,578.300 398,213.462 2,158,871.852
Net Asset Value per Unit:
Select*Annuity II
Tax-Qualified $11.657087 $14.824389 $13.213058 $16.164032
Non-Tax Qualified $11.657087 $14.824389 $13.213058 $16.164032
Select*Annuity III
Tax-Qualified $11.141371 $14.435717 $12.595273 $15.485584
Non-Tax Qualified $11.141371 $14.435717 $12.595273 $15.485584
</TABLE>
The accompanying notes are an integral part of the financial statements.
iii
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES, CONTINUED
(UNAUDITED)
<TABLE>
<CAPTION>
Putnam's PCM Putnam's PCM Northstar's Northstar's
Asia Pacific New Income Northstar's Multi-Sector
ASSETS: Growth Opportunities and Growth Growth Bond
- ------- Fund Fund Fund Fund Fund Total
------------ ------------- ----------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Investments in mutual funds at market value:
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
23,764,168 shares (cost $23,764) $ 23,764
High Income Portfolio
2,236,574 shares (cost $25,311) 26,346
Equity-Income Portfolio
5,557,055 shares (cost $87,938) 108,251
Growth Portfolio
3,604,935 shares (cost $84,338) 108,364
Overseas Portfolio
1,715,570 shares (cost $27,398) 30,674
Asset Manager Portfolio
3,276,613 shares (cost $47,393) 51,214
Investment Grade Bond Portfolio
1,395,504 shares (cost $16,325) 16,300
Index 500 Portfolio
165,325 shares (cost $11,786) 13,213
Contrafund Portfolio
888,057 shares (cost $12,473) 13,125
PUTNAM'S PCM:
Diversified Income Fund
736,459 shares (cost $7,641) 7,733
Growth and Income Fund
930,439 shares (cost $18,816) 20,460
Utilities Growth and Income Fund
374,885 shares (cost $4,731) 5,061
Voyager Fund
1,048,046 shares (cost $29,518) 33,789
Asia Pacific Growth Fund
217,920 shares (cost $2,287) $2,332 2,332
New Opportunities Fund
779,693 shares (cost $12,975) $14,136 14,136
NORTHSTAR'S:
Income and Growth Fund
90,366 shares (cost $1,040) $1,052 1,052
Growth Fund
153,968 shares (cost $2,180) $2,162 2,162
Multi-Sector Bond Fund
232,940 shares (cost $1,200) $1,208 1,208
---------- ---------- ---------- ---------- ---------- ----------
Total Assets $2,332 $14,136 $1,052 $2,162 $1,208 $479,184
====== ======= ====== ====== ====== ========
LIABILITIES AND POLICYOWNERS' EQUITY:
Due to Northwestern National Life Insurance Company
for accrued mortality and expense risks $ 1 $ 16 $ 1 $ 2 $ 1 $ 486
Contract Owners' Equity 2,331 14,120 1,051 2,160 1,207 478,698
---------- ---------- ---------- ---------- ---------- ----------
Total Liabilities and Policyowners' Equity $2,332 $14,l36 $1,052 $2,162 $1,208 $479,184
====== ==== == ====== ====== ====== ========
Units Outstanding: 216,182.099 916,664.153 84,841.100 143,920.813 101,152.215 28,368,747.960
Net Asset Value per Unit:
Select*Annuity II
Tax-Qualified $ - $ - $ - $ - $ -
Non-Tax Qualified $ - $ - $ - $ - $ -
Select*Annuity III
Tax-Qualified $10.673110 $15.379114 $12.385097 $15.011557 $11.930895
Non-Tax Qualified $10.673110 $15.379114 $12.385097 $15.011557 $11.930895
</TABLE>
The accompanying notes are an integral part of the financial statements.
iv
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
STATEMENT OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
(In Thousands)
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED YEAR ENDED
ENDED DECEMBER 31, DECEMBER 31,
JUNE 30, 1996 1995 1994
--------------- ----------- ------------
<S> <C> <C> <C>
Net investment income:
Reinvested dividend income ............... $6,913 $ 5,942 $ 3,970
Reinvested capital gains ................. 15,151 3,314 6,860
Administrative Expenses ................. (3,230) (4,764) (3,286)
--------- --------- ---------
Net investment income and capital gains 18,834 4,492 7,544
--------- --------- ---------
Realized and unrealized gains (losses):
Net realized gains on
redemptions of fund shares ............. 6,222 9,391 3,754
Increase (decrease) in unrealized
appreciation of investments ............ 1,601 51,022 (13,578)
--------- --------- ---------
Net realized and unrealized gains (losses) 7,823 60,413 (9,824)
--------- --------- ---------
Net additions (reductions) from operations 26,657 64,905 (2,280)
--------- --------- ---------
Contract Owners' transactions:
Net purchase payments .................... 85,490 90,585 88,469
Surrenders ............................... (10,989) (21,291) (13,237)
Transfers between Sub-Accounts
and Fixed Account ..................... 1,390 (913) (508)
Annuity payments ......................... (1,508) (958) (1,265)
Transfers to (from) required reserves .... 7 (146) 17
--------- --------- ---------
Net additions for Contract Owners' transactions 74,390 67,277 73,476
--------- --------- ---------
Net additions for the period....... 101,047 132,182 71,196
Contract Owners' Equity, beginning of the year 377,651 245,469 174,273
--------- --------- ---------
Contract Owners' Equity, end of the period.. $478,698 $377,651 $245,469
======== ======== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
v
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
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.
vi
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
5. INVESTMENTS:
The net realized gains (losses) on redemptions of fund shares for the six
months ended June 30, 1996 and the years ended December 31, 1995 and 1994,
were as follows, (in thousands):
<TABLE>
<CAPTION>
FIDELITY'S VIPF
MONEY MARKET
TOTAL PORTFOLIO
----------------------------------- -----------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
------------- --------- ---------- -------------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $43,521 $83,108 $49,854 $12,799 $16,985 $15,801
Cost ............... 37,299 73,717 46,100 12,799 16,985 15,801
--------- --------- --------- --------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ..... $ 6,222 $ 9,391 $ 3,754 $ - $ - $ -
======= ======== ======= ======== ======== ========
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF
GROWTH OVERSEAS
PORTFOLIO PORTFOLIO
------------------------------------------- -----------------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $4,030 $11,631 $6,277 $1,503 $6,179 $3,143
Cost ............... 2,392 7,195 4,716 1,220 5,293 2,551
--------- --------- --------- --------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ...... $1,638 $ 4,436 $1,561 $ 283 $ 886 $ 592
======= ======== ======= ======== ======== ========
<CAPTION>
FIDELITY'S VIPF II FIDELITY'S VIPF II
INDEX 500 CONTRAFUND
PORTFOLIO BOND PORTFOLIO
---------------------------------------------- -----------------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $1,389 $1,802 $355 $685 $140 $-
Cost ............... 1,091 1,542 352 561 119 -
--------- --------- --------- --------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ...... $ 298 $ 260 $3 $124 $ 21 $-
======= ======== ======= ======== ======== ========
</TABLE>
vii
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
<TABLE>
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF
HIGH INCOME EQUITY-INCOME
PORTFOLIO PORTFOLIO
--------------------------------------- -----------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
----------------------------------------- ----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $3,270 $5,766 $4,887 $5,994 $7,777 $5,135
Cost ............... 3,112 5,414 4,460 3,904 5,469 4,129
--------- --------- --------- --------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ..... $ 158 $ 352 $ 427 $2,090 $2,308 $1,006
======= ======== ======= ======== ======== ========
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF II
ASSET MANAGER INVESTMENT GRADE BOND
PORTFOLIO PORTFOLIO
------------------------------------------------ -----------------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $3,910 $9,653 $2,543 $3,416 $5,108 $5,246
Cost ............... 3,474 8,857 2,270 3,305 4,997 5,342
--------- --------- --------- --------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ...... $ 436 $ 796 $ 273 $ 111 $ 111 ($96)
======= ======== ======= ======== ======== ========
<CAPTION>
PUTNAM'S PCM PUTNAM'S PCM
DIVERSIFIED INCOME GROWTH AND INCOME
FUND FUND
------------------------------------------------ ----------------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $1,452 $1,414 $500 $986 $1,006 $400
Cost ............... 1,316 1,334 515 786 876 407
--------- --------- --------- --------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ...... $ 136 $ 80 ($ 15) $200 $ 130 ($ 7)
======= ======== ======= ======== ======== ========
</TABLE>
viii
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
5. INVESTMENTS (CONTINUED):
The net realized gains (losses) on redemptions of fund shares for the six
months ended June 30, 1996 and the years ended December 31, 1995 and 1994,
were as follows, (in thousands):
<TABLE>
<CAPTION>
PUTNAM'S PCM
UTILITIES PUTNAM'S PCM
GROWTH AND INCOME VOYAGER
FUND FUND
---------------------------------------------- -----------------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $1,017 $548 $231 $1,723 $2,124 $1,169
Cost................ 837 493 240 1,332 1,764 1,171
--------- --------- --------- --------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ...... $ 180 $ 55 ($ 9) $ 391 $ 360 ($ 2)
======= ======== ======= ======== ======== ========
<CAPTION>
NORTHSTAR'S NORTHSTAR'S
INCOME AND GROWTH GROWTH
FUND FUND
---------------------------------------------- ----------------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $76 $36 $- $107 $15 $-
Cost ............... 73 34 - 94 12 -
--------- --------- ------- --------- --------- --------
Net realized gains
(losses) on
redemptions of
fund shares ...... $ 3 $ 2 $- $ 13 $ 3 $-
======= ======== ======= ======== ======== ========
</TABLE>
ix
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
<TABLE>
<CAPTION>
PUTNAM'S PCM PUTNAM'S PCM
ASIA PACIFIC NEW OPPORTUNITIES
FUND FUND
------------------------------------------------- -----------------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from
redemptions ...... $321 $96 $- $504 $321 $-
Cost................ 301 96 - 366 262 -
--------- --------- -------- --------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ...... $ 20 $- $- $138 $ 59 $-
======= ======== ======= ======== ======== ========
</TABLE>
NORTHSTAR'S
MULTI-SECTOR BOND
FUND
----------------------------------------------
Six months Year ended Year ended
ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994
--------- --------- ---------
Proceeds from
redemptions ...... $339 $37 $-
Cost ............... 336 37 -
---------- --------- ---------
Net realized gains
(losses) on
redemptions of
fund shares ...... $ 3 $- $-
========== ========== ==========
x
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
6. CONTRACT OWNERS' TRANSACTIONS:
Unit transactions in each Sub-Account during the six months ended June 30,
1996 and the years ended December 31, 1995 and 1994, were as follows:
<TABLE>
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF
MONEY MARKET HIGH INCOME
PORTFOLIO PORTFOLIO
--------------------------------------- -----------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year ............ 1,607,916.548 1,183,020.139 827,229.012 1,368,646.703 1,018,223.635 798,986.176
Units purchased ................. 1,155,862.416 1,210,518.082 947,248.323 260,981.461 405,708.793 421,702.041
Units redeemed .................. (106,416.312) (120,871.417) (125,836.730) (31,121.463) (74,441.049) (62,304.904)
Units transferred between
Sub-Accounts and/or
Fixed Account................. (664,819.134) (664,750.256) (465,620.466) (72,143.017) 19,155.324 (140,159.678)
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of period ................ 1,992,543.518 1,607,916.548 1,183,020.139 1,526,363.684 1,368,646.703 1,018,223.635
============= ============= ============= ============= ============= =============
<CAPTION>
FIDELITY'S VIPF II FIDELITY'S VIPF II
ASSET MANAGER INVESTMENT GRADE
PORTFOLIO BOND PORTFOLIO
------------------------------------- -------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year............. 3,660,661.401 3,382,528.684 1,727,140.831 1,284,788.353 993,890.531 729,334.990
Units purchased ................. 240,068.714 542,582.388 1,624,947.759 402,815.947 723,466.175 651,757.704
Units redeemed .................. (94,495.978) (270,565.326) (115,058.014) (43,088.605) (49,436.532) (69,080.787)
Units transferred between
Sub-Accounts and/or
Fixed Account................. (165,613.784) 6,115.655 145,498.108 (284,900.422) (383,131.821) (318,121.376)
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of period................. 3,640,620.353 3,660,661.401 3,382,528.684 1,359,615.273 1,284,788.353 993,890.531
============= ============= ============= ============= ============= ===========
</TABLE>
xi
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
<TABLE>
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF
EQUITY-INCOME GROWTH
PORTFOLIO PORTFOLIO
------------------------------------------ ------------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year ............ 4,437,068.543 3,257,109.719 2,319,003.995 4,004,682.840 3,085,291.094 2,019,876.667
Units purchased ................. 967,923.619 1,101,417.898 933,801.967 543,742.319 769,630.128 1,070,554.250
Units redeemed .................. (153,771.262) (259,661.010) (196,100.661 ) (116,416.383) (279,858.707) (153,211.193)
Units transferred between
Sub-Accounts and/or
Fixed Account................. (27,151.281) 338,201.936 200,404.418 148,744.347 429,620.325 148,071.370
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of period ................ 5,224,069.619 4,437,068.543 3,257,109.719 4,580,753.123 4,004,682.840 3,085,291.094
============= ============= ============= ============= ============= =============
<CAPTION>
FIDELITY'S VIPF II FIDELITY'S VIPF II
INDEX 500 CONTRAFUND
PORTFOLIO FUND
------------------------------------- -------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Units outstanding,
beginning of year............. 575,979.607 263,727.290 102,493.314 440,844.341 - -
Units purchased ................. 283,957.460 230,822.310 139,102.547 430,484.178 349,595.850 -
Units redeemed .................. (14,634.480) (16,245.621) (12,679.127) (10,307.024) (2,747.245) -
Units transferred between
Sub-Accounts and/or
Fixed Account................. 31,272.743 97,675.628 34,810.556 144,685.828 93,995.736 -
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of period................. 876,575.330 575,979.607 263,727.290 1,005,707.323 440,844.341 -
=========== =========== =========== ============= =========== ===========
</TABLE>
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
FIDELITY'S VIPF
OVERSEAS
PORTFOLIO
------------------------------------------
Six months Year ended Year ended
ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994
----------- ----------- -----------
Units outstanding,
beginning of year ............ 1,821,113.544 1,680,499.232 819,347.654
Units purchased ................. 181,967.637 381,191.472 724,437.332
Units redeemed .................. (39,526.517) (120,861.323) (55,236.857)
Units transferred between
Sub-Accounts and/or
Fixed Account................. 79,772.864 (119,715.837) 191,951.103
----------- ----------- -----------
Units outstanding,
end of period ................ 2,043,327.528 1,821,113.544 1,680,499.232
============= ============= =============
PUTNAM'S PCM
DIVERSIFIED INCOME
FUND
-------------------------------------
Six months Year ended Year ended
ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994
----------- ----------- -----------
Units outstanding,
beginning of year............. 632,420.015 350,570.940 -
Units purchased ................. 159,856.408 342,422.647 364,540.968
Units redeemed .................. (16,706.688) (18,550.684) (4,879.794)
Units transferred between
Sub-Accounts and/or
Fixed Account................. (84,821.520) (42,022.888) (9,090.234)
----------- ----------- -----------
Units outstanding,
end of period................. 690,748.215 632,420.015 350,570.940
=========== =========== ===========
xii
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
6. CONTRACT OWNERS' TRANSACTIONS (CONTINUED):
Unit transactions in each Sub-Account during the six months ended June 30,
1996 and the years ended December 31, 1995 and 1994, were as follows:
<TABLE>
<CAPTION>
PUTNAM'S PCM PUTNAM'S PCM
GROWTH & INCOME UTILITIES GROWTH &
FUND INCOME FUND
------------------------------------- -------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year ............ 859,405.339 263,273.051 - 294,096.722 120,645.331 -
Units purchased ................. 446,985.025 411,254.359 211,628.753 132,891.709 109,716.900 104,433.541
Units reedeemed ................. (15,214.314) (19,519.533) (6,596.040) (6,609.838) (6,323.494) (1,165.178)
Units transferred between
Sub-Accounts and/or
Fixed Account ................ 117,402.250 204,397.462 58,240.338 (22,165.131) 70,057.985 17,376.968
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of period................. 1,408,578.300 859,405.339 263,273.051 398,213.462 294,096.722 120,645.331
============= =========== =========== =========== =========== ===========
<CAPTION>
NORTHSTAR'S NORTHSTAR'S
INCOME & GROWTH GROWTH
FUND FUND
------------------------------------- -------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Units outstanding,
beginning of year ............ 38,118.380 - - 16,298.318 - -
Units purchased ................. 42,878.564 36,112.093 - 53,773.230 15,762.759 -
Units reedeemed ................. (698.013) (76.821) - (933.000) (272.010) -
Units transferred between
Sub-Accounts and/or
Fixed Account ................ 4,542.169 2,083.108 - 74,782.265 807.569 -
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of period............... 84,841.100 38,118.380 - 143,920.813 16,298.318 -
========== ========== =========== =========== ========== ===========
</TABLE>
xiii
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
<TABLE>
<CAPTION>
PUTNAM'S PCM PUTNAM'S PCM
VOYAGER ASIA PACIFIC
FUND GROWTH FUND
------------------------------------- -------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year ............ 1,370,458.827 423,202.264 - 77,406.519 - -
Units purchased ................. 548,153.487 702,903.236 305,026.287 73,266.372 59,171.003 -
Units reedeemed ................. (33,318.146) (23,265.910) (4,175.151) (543.453) (164.483) -
Units transferred between
Sub-Accounts and/or
Fixed Account ................ 273,577.684 267,619.237 122,351.128 66,052.661 18,399.999 -
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of period................. 2,158,871.852 1,370,458.827 423,202.264 216,182.099 77,406.519 -
============= ============= =========== =========== ========== ===========
<CAPTION>
PUTNAM'S PCM NORTHSTAR'S
NEW OPPORTUNITIES MULTI-SECTOR BOND
FUND FUND
------------------------------------- -----------------------------------------
Six months Year ended Year ended Six months Year ended Year ended
ended Dec. 31, Dec. 31, ended Dec. 31, Dec. 31,
June 30, 1996 1995 1994 June 30, 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Units outstanding,
beginning of year ............ 279,169.636 - - 21,963.823 - -
Units purchased ................. 418,858.480 191,561.789 - 93,376.895 21,443.118 -
Units reedeemed ................. (7,844.285) (1,607.939) - (318.088) (0.504) -
Units transferred between
Sub-Accounts and/or
Fixed Account ................ 226,480.322 89,215.786 - (13,870.415) 521.209 -
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of period............... 916,664.153 279,169.636 - 101,152.215 21,963.823 -
=========== =========== =========== =========== ========== ===========
</TABLE>
xiv
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
7. STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY:
Operations and changes in Contract Owners' equity for the six months ended
June 30, 1996 were as follows, (in thousands):
<TABLE>
<CAPTION>
Fidelity's Fidelity's Fidelity's Fidelity's Fidelity's
VIPF VIPF VIPF VIPF VIPF
Money Market High Income Equity-Income Growth Overseas
Total Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net investment income:
Reinvested dividend income..... $6,913 $588 $1,823 $148 $254 $312
Reinvested capital gains ...... 15,151 - 357 4,249 6,399 344
Administrative expenses........ (3,230) (172) (203) (775) (753) (211)
--------- --------- --------- --------- --------- ---------
Net investment income (loss)
and capital gains.... 18,834 416 1,977 3,622 5,900 445
--------- --------- --------- --------- --------- ---------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares.. 6,222 - 158 2,090 1,638 283
Increase (decrease) in unrealized
appreciation of investments . 1,601 - (595) (909) 1,791 1,091
--------- --------- --------- --------- --------- --------
Net realized and
unrealized gains (losses) 7,823 - (437) 1,181 3,429 1,374
--------- --------- --------- --------- --------- ---------
Net additions (reductions)
from operations.... 26,657 416 1,540 4,803 9,329 1,819
--------- --------- --------- --------- --------- ---------
Contract Owners' transactions:
Net purchase payments.......... 85,490 12,646 3,313 14,908 8,526 2,229
Surrenders .................... (10,989) (1,014) (494) (2,945) (2,947) (570)
Transfers between Sub-Accounts
and/or Fixed Account......... 1,390 (7,340) (1,018) (565) 2,727 997
Annuity payments .............. (1,508) (333) (98) (547) (215) (47)
Transfers to (from) required
reserves .................... 7 (2) (1) - 6 1
--------- --------- --------- --------- --------- ---------
Net additions (reductions) for
Contract Owners' transactions 74,390 3,957 1,702 10,851 8,097 2,610
--------- --------- --------- --------- --------- ---------
Net additions (reductions)
for the period........ 101,047 4,373 3,242 15,654 17,426 4,429
Contract Owners' Equity,
beginning of the year ........ 377,651 19,364 23,078 92,484 90,834 26,216
--------- --------- --------- --------- --------- ---------
Contract Owners' Equity,
end of the period ............ $478,698 $23,737 $26,320 $108,138 $108,260 $30,645
======== ======= ======= ======== ======== =======
</TABLE>
xv
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
<TABLE>
<CAPTION>
Fidelity's Putnam's Putnam's Putnam's
Fidelity's VIPF II Fidelity's Fidelity's PCM PCM PCM Utilities
VIPF II Investment VIPF II VIPF II Diversified Growth & Growth &
Asset Manager Grade Bond Index 500 Contrafund Income Income Income
Portfolio Portfolio Portfolio Portfolio Fund Fund Fund
--------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income:
Reinvested dividend income.... $1,785 $780 $101 $- $446 $367 $159
Reinvested capital gains ...... 1,472 - 260 59 - 639 -
Administrative expenses....... (381) (116) (76) (58) (55) (117) (33)
--------- --------- --------- --------- --------- --------- ---------
Net investment income (loss)
and capital gains ... 2,876 664 285 1 391 889 126
--------- --------- --------- --------- --------- --------- ---------
Realized and unrealized gains (losses)
Net realized gains (losses) on
redemptions of fund shares.. 436 111 298 124 136 200 180
Increase (decrease) in unrealized
appreciation of investments . (850) (1,129) 316 517 (478) 99 (90)
--------- --------- --------- --------- --------- --------- ---------
Net realized and
unrealized gains (losses) (414) (1,018) 614 641 (342) 299 90
--------- --------- --------- --------- --------- --------- ---------
Net additions (reductions)
from operations.... 2,462 (354) 899 642 49 1,188 216
--------- --------- --------- --------- --------- --------- ---------
Contract Owners' transactions:
Net purchase payments......... 2,856 4,366 4,048 5,413 1,775 6,281 1,619
Surrenders .................... (1,315) (494) (214) (45) (176) (177) (61)
Transfers between Sub-Accounts
and/or Fixed Account........ (2,319) (3,219) 480 1,829 (944) 1,661 (264)
Annuity payments .............. (14) (3) - (83) (7) (31) (18)
Transfers to (from) required
reserves .................... 1 (1) 1 1 - - -
--------- --------- --------- --------- --------- --------- ---------
Net additions (reductions) for
Contract Owners' transactions (791) 649 4,315 7,115 648 7,734 1,276
--------- --------- --------- --------- --------- --------- ---------
Net additions (reductions)
for the period....... 1,671 295 5,214 7,757 697 8,922 1,492
Contract Owners' Equity,
beginning of the year ........ 49,492 15,987 7,987 5,354 7,028 11,517 3,564
--------- --------- --------- --------- --------- --------- ---------
Contract Owners' Equity,
end of the period ............ $51,163 $16,282 $13,201 $13,111 $7,725 $20,439 $5,056
======= ======= ======= ======= ====== ======= ======
</TABLE>
xvi
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
7. STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY (CONTINUED):
Operations and changes in Contract Owners' equity for the six months ended
June 30, 1996 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....... $ 81 $20 - $14 $4 $31
Reinvested capital gains ........ 1,372 - - - - -
Administrative expenses.......... (196) (11) (59) (5) (4) (5)
--------- --------- --------- --------- --------- ---------
Net investment income (loss)
and capital gains ........... 1,257 9 (59) 9 - 26
--------- --------- --------- --------- --------- ---------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares .... 391 20 138 3 13 3
Increase (decrease) in unrealized
appreciation of investments .... 953 25 847 14 (7) 6
--------- --------- --------- --------- --------- ---------
Net realized and
unrealized gains (losses) .. 1,344 45 985 17 6 9
--------- --------- --------- --------- --------- ---------
Net additions (reductions)
from operations......... 2,601 54 926 26 6 35
--------- --------- --------- --------- --------- ---------
Contract Owners' transactions:
Net purchase payments ............ 8,170 771 6,151 521 808 1,089
Surrenders ....................... (474) (5) (33) (8) (13) (4)
Transfers between Sub-Accounts
and/or Fixed Account ........... 4,185 726 3,406 54 1,157 (163)
Annuity payments ................. (34) - (78) - - -
Transfers to (from) required
reserves ....................... (1) - 2 - - -
--------- --------- --------- --------- --------- ---------
Net additions (reductions) for
Contract Owners' transactions 11,846 1,492 9,448 567 1,952 922
--------- --------- --------- --------- --------- ---------
Net additions (reductions)
for the period ............... 14,447 1,546 10,374 593 1,958 957
Contract Owners' Equity,
beginning of the year ........... 19,305 785 3,746 458 202 250
--------- --------- --------- --------- --------- ---------
Contract Owners' Equity,
end of the period ............... $33,752 $2,331 $14,120 $1,051 $2,160 $1,207
======= ====== ======= ====== ====== ======
</TABLE>
xvii
<PAGE>
NWNL SELECT VARIABLE ACCOUNT
[LOGO] 20 Washington Avenue South
Minneapolis, Minnesota 55401
(612) 372-5507
38777i
(Select II/III)
