<PAGE> 1
S E M I - A N N U A L R E P O R T
J U N E 3 0 , 1 9 9 6
WRL SERIES LIFE ACCOUNT
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
August 1996
ACC00003-S (8/96)
<PAGE> 2
- --------------------------------------------------------------------------------
T A B L E O F C O N T E N T S
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
<S> <C>
WRL SERIES LIFE ACCOUNT
Financial Statements:
Money Market Sub-Account..................... 2
Bond Sub-Account............................. 4
Growth Sub-Account........................... 6
Short-to-Intermediate Government
Sub-Account............................... 8
Global Sub-Account........................... 10
Equity-Income Sub-Account.................... 12
Emerging Growth Sub-Account.................. 14
Aggressive Growth Sub-Account................ 16
Balanced Sub-Account......................... 18
Utility Sub-Account.......................... 20
Tactical Asset Allocation Sub-Account........ 22
C.A.S.E. Growth Sub-Account.................. 24
Value Equity Sub-Account..................... 26
Notes to Financial Statements..................... 28
</TABLE>
1
<PAGE> 3
WRL SERIES LIFE ACCOUNT
MONEY MARKET SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: JUNE 30, 1996
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Money Market Portfolio (11,764,190.220
shares; cost $ 11,764,190)................... $ 11,764,190
Accrued transfers from (to)
depositor - net................................ (270,307)
-------------
Total assets................................. 11,493,883
-------------
LIABILITIES:....................................... 0
-------------
Total net assets............................. $ 11,493,883
=============
EQUITY ACCOUNTS:
Policy Owners' equity:
Money Market sub-account (759,285.927539
units; $ 15.137753 unit value)............... $ 11,493,883
-------------
Total equity................................. $ 11,493,883
=============
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INVESTMENT INCOME: JUNE 30, 1996
<S> <C>
Dividend income................................ $ 253,864
Capital gain distributions..................... 0
---------
253,864
EXPENSES:
Mortality and expense risk charges............. 45,000
---------
Net investment income (loss)................. 208,864
---------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from
securities transactions...................... 0
Change in unrealized appreciation
(depreciation)............................... 0
---------
Net gain (loss) on investments............... 0
---------
Net increase (decrease) in equity accounts
resulting from operations................ $ 208,864
=========
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
<S> <C> <C>
OPERATIONS:
Net investment income (loss)...................................................... $ 208,864 $ 397,410
Net gain (loss) on investments.................................................... 0 0
------------ -------------
Net increase (decrease) in equity accounts
resulting from operations....................................................... 208,864 397,410
------------ -------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)............................................... 2,078,437 3,139,280
------------ -------------
Less cost of units redeemed:
Administrative charges.......................................................... 966,194 1,356,484
Policy loans.................................................................... 112,030 219,767
Surrender benefits.............................................................. 460,541 899,893
Death benefits.................................................................. 13,277 7,670
------------ -------------
1,552,042 2,483,814
------------ -------------
Increase (decrease) in equity accounts from
capital unit transactions..................................................... 526,395 655,466
------------ -------------
Net increase (decrease) in equity accounts...................................... 735,259 1,052,876
EQUITY ACCOUNTS:
Beginning of period............................................................... 10,758,624 9,705,748
------------ -------------
End of period..................................................................... $ 11,493,883 $ 10,758,624
============ =============
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
2
<PAGE> 4
WRL SERIES LIFE ACCOUNT
MONEY MARKET SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
-------- --------------------------------------------------------
1996 1995 1994 1993 1992 1991
-------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 14.83 $ 14.19 $ 13.84 $ 13.63 $ 13.33 $ 12.78
Income from operations:
Net investment income (loss)................ .31 .64 .35 .21 .30 .55
Net realized and unrealized
gain (loss) on investments................ .00 .00 .00 .00 .00 .00
-------- -------- ------- ------- ------- -------
Total income (loss) from operations....... .31 .64 .35 .21 .30 .55
-------- -------- ------- ------- ------- -------
Accumulation unit value, end of period.......... $ 15.14 $ 14.83 $ 14.19 $ 13.84 $ 13.63 $ 13.33
======== ========= ======== ======== ======== ========
Total return.................................... 2.07% 4.49% 2.58% 1.52% 2.24% 4.34%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 11,494 $ 10,759 $ 9,706 $ 4,985 $ 4,619 $ 4,042
Ratio of net investment income (loss)
to average net assets**..................... 4.05% 4.37% 2.66% 1.51% 2.12% 4.28%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
** This ratio is annualized for the period ended June 30, 1996.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
3
<PAGE> 5
WRL SERIES LIFE ACCOUNT
BOND SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: JUNE 30, 1996
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Bond Portfolio (997,676.361 shares;
cost $ 11,089,016)................................ $ 10,548,410
Accrued transfers from (to) depositor - net........... (3,569)
------------
Total assets...................................... 10,544,841
------------
LIABILITIES:............................................ 0
------------
Total net assets.................................. $ 10,544,841
============
EQUITY ACCOUNTS:
Policy Owners' equity:
Bond sub-account (561,811.796778 units;
$18.769348 unit value)............................ $ 10,544,841
------------
Total equity...................................... $ 10,544,841
============
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INVESTMENT INCOME: JUNE 30, 1996
<S> <C>
Dividend income................................. $ 286,890
Capital gain distributions...................... 0
----------
286,890
EXPENSES:
Mortality and expense risk charges.............. 45,636
----------
Net investment income (loss).................. 241,254
----------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions.................................. (33,848)
Change in unrealized appreciation
(depreciation)................................ (693,371)
----------
Net gain (loss) on investments................ (727,219)
----------
Net increase (decrease) in equity accounts
resulting from operations................. $ (485,965)
==========
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
<S> <C> <C>
OPERATIONS:
Net investment income (loss)...................................................... $ 241,254 $ 459,977
Net gain (loss) on investments.................................................... (727,219) 1,080,157
------------ -------------
Net increase (decrease) in equity accounts
resulting from operations....................................................... (485,965) 1,540,134
------------ -------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)............................................... 1,747,591 3,749,029
------------ -------------
Less cost of units redeemed:
Administrative charges.......................................................... 614,828 916,494
Policy loans.................................................................... 65,776 197,829
Surrender benefits.............................................................. 98,202 357,384
Death benefits.................................................................. 4,111 10,202
------------ -------------
782,917 1,481,909
------------ -------------
Increase (decrease) in equity accounts from
capital unit transactions..................................................... 964,674 2,267,120
------------ -------------
Net increase (decrease) in equity accounts...................................... 478,709 3,807,254
EQUITY ACCOUNTS:
Beginning of period............................................................... 10,066,132 6,258,878
------------ -------------
End of period..................................................................... $ 10,544,841 $ 10,066,132
============ =============
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
4
<PAGE> 6
WRL SERIES LIFE ACCOUNT
BOND SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
--------- --------------------------------------------------
1996 1995 1994 1993 1992
--------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 19.67 $ 16.14 $ 17.50 $ 15.57 $ 14.68
Income from operations:
Net investment income (loss)................ .44 1.05 .89 2.11 1.00
Net realized and unrealized
gain (loss) on investments................ (1.34) 2.48 (2.25) (.18) (.11)
-------- -------- ------- ------- -------
Total income (loss) from operations....... (.90) 3.53 (1.36) 1.93 .89
-------- -------- ------- ------- -------
Accumulation unit value, end of period.......... $18.77 $ 19.67 $ 16.14 $ 17.50 $ 15.57
======== ======== ======= ======= =======
Total return.................................... (4.60)% 21.89% (7.77)% 12.40% 6.08%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 10,545 $ 10,066 $ 6,259 $ 6,985 $ 4,558
Ratio of net investment income (loss)
to average net assets**..................... 4.67% 5.80% 5.57% 12.92% 6.69%
<CAPTION>
1991
-------
<S> <C>
Accumulation unit value, beginning of period.... $ 12.48
Income from operations:
Net investment income (loss)................ .48
Net realized and unrealized
gain (loss) on investments................ 1.72
-------
Total income (loss) from operations....... 2.20
-------
Accumulation unit value, end of period.......... $ 14.68
=======
Total return.................................... 17.63%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 3,055
Ratio of net investment income (loss)
to average net assets**..................... 3.59%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
** This ratio is annualized for the period ended June 30, 1996.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
5
<PAGE> 7
WRL SERIES LIFE ACCOUNT
GROWTH SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: JUNE 30, 1996
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Growth Portfolio (8,778,585.496 shares;
cost $ 221,822,024)....................... $ 319,767,690
Accrued transfers from (to) depositor - net... (2,124)
-------------
Total assets.............................. 319,765,566
-------------
LIABILITIES:.................................... 0
-------------
Total net assets.......................... $ 319,765,566
=============
EQUITY ACCOUNTS:
Policy Owners' equity:
Growth sub-account (6,719,846.992884
units; $47.585245 unit value)............. $ 319,765,566
-------------
Total equity.............................. $ 319,765,566
=============
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INVESTMENT INCOME: JUNE 30, 1996
<S> <C>
Dividend income......................... $ 556,048
Capital gain distributions.............. 0
------------
556,048
EXPENSES:
Mortality and expense risk charges...... 1,276,304
------------
Net investment income (loss).......... (720,256)
------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions.......................... 2,351,206
Change in unrealized appreciation
(depreciation)........................ 38,243,622
------------
Net gain (loss) on investments........ 40,594,828
------------
Net increase (decrease) in equity
accounts resulting from
operations........................ $ 39,874,572
============
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
<S> <C> <C>
OPERATIONS:
Net investment income (loss)...................................................... $ (720,256) $ 23,250,380
Net gain (loss) on investments.................................................... 40,594,828 54,801,782
-------------- -------------
Net increase (decrease) in equity accounts
resulting from operations....................................................... 39,874,572 78,052,162
-------------- -------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)............................................... 41,253,311 61,850,933
-------------- -------------
Less cost of units redeemed:
Administrative charges.......................................................... 13,662,676 23,714,204
Policy loans.................................................................... 4,138,487 5,518,596
Surrender benefits.............................................................. 5,829,082 8,982,170
Death benefits.................................................................. 199,177 711,078
-------------- -------------
23,829,422 38,926,048
-------------- -------------
Increase (decrease) in equity accounts from
capital unit transactions..................................................... 17,423,889 22,924,885
-------------- -------------
Net increase (decrease) in equity accounts...................................... 57,298,461 100,977,047
EQUITY ACCOUNTS:
Beginning of period............................................................... 262,467,105 161,490,058
-------------- -------------
End of period..................................................................... $ 319,765,566 $ 262,467,105
============== =============
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
6
<PAGE> 8
WRL SERIES LIFE ACCOUNT
GROWTH SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
--------- ------------------------------------------------------
1996 1995 1994 1993 1992
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 41.47 $ 28.44 $ 31.30 $ 30.37 $ 29.95
Income from operations:
Net investment income (loss)................ (.11) 3.89 .04 .46 1.09
Net realized and unrealized
gain (loss) on investments................ 6.23 9.14 (2.90) .47 (.67)
--------- --------- --------- --------- ---------
Total income (loss) from operations....... 6.12 13.03 (2.86) .93 .42
--------- --------- --------- --------- ---------
Accumulation unit value, end of period.......... $ 47.59 $ 41.47 $ 28.44 $ 31.30 $ 30.37
========= ========= ========= ========= =========
Total return.................................... 14.75% 45.81% (9.13)% 3.06% 1.41%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 319,766 $ 262,467 $ 161,490 $ 169,757 $ 146,053
Ratio of net investment income (loss)
to average net assets**..................... (.50)% 11.05% .16% 1.56% 3.84%
<CAPTION>
1991
---------
<S> <C>
Accumulation unit value, beginning of period.... $ 18.91
Income from operations:
Net investment income (loss)................ 1.72
Net realized and unrealized
gain (loss) on investments................ 9.32
---------
Total income (loss) from operations....... 11.04
---------
Accumulation unit value, end of period.......... $ 29.95
=========
Total return.................................... 58.37%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 111,375
Ratio of net investment income (loss)
to average net assets**..................... 7.14%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
** This ratio is annualized for the period ended June 30, 1996.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
7
<PAGE> 9
WRL SERIES LIFE ACCOUNT
SHORT-TO-INTERMEDIATE GOVERNMENT SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: JUNE 30, 1996
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Short-to-Intermediate Government Portfolio
(142,188.718 shares; cost $1,457,073).......... $ 1,455,350
Accrued transfers from (to) depositor - net........ (8,713)
-----------
Total assets................................... 1,446,637
-----------
LIABILITIES:......................................... 0
-----------
Total net assets............................... $ 1,446,637
===========
EQUITY ACCOUNTS:
Policy Owners' equity:
Short-to-Intermediate Government sub-account
(125,915.056414 units; $11.488993 unit value).. $ 1,446,637
-----------
Total equity................................... $ 1,446,637
===========
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INVESTMENT INCOME: JUNE 30, 1996
<S> <C>
Dividend income.................................. $ 23,433
Capital gain distributions....................... 0
---------
23,433
EXPENSES:
Mortality and expense risk charges............... 6,643
---------
Net investment income (loss)................... 16,790
---------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from
securities transactions........................ 14,142
Change in unrealized appreciation
(depreciation)................................. (40,252)
---------
Net gain (loss) on investments................. (26,110)
---------
Net increase (decrease) in equity accounts
resulting from operations.................. $ (9,320)
=========
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..................................................... $ 16,790 $ 62,086
Net gain (loss) on investments................................................... (26,110) 68,387
------------ -----------
Net increase (decrease) in equity accounts
resulting from operations...................................................... (9,320) 130,473
------------ -----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed).............................................. 47,793 679,242
------------ -----------
Less cost of units redeemed:
Administrative charges......................................................... 84,958 141,954
Policy loans................................................................... 18,527 52,521
Surrender benefits............................................................. 6,336 41,967
Death benefits................................................................. 0 144
------------ -----------
109,821 236,586
------------ -----------
Increase (decrease) in equity accounts from capital unit transactions.......... (62,028) 442,656
------------ -----------
Net increase (decrease) in equity accounts..................................... (71,348) 573,129
EQUITY ACCOUNTS:
Beginning of period.............................................................. 1,517,985 944,856
------------ -----------
End of period.................................................................... $ 1,446,637 $ 1,517,985
============ ===========
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
8
<PAGE> 10
WRL SERIES LIFE ACCOUNT
SHORT-TO-INTERMEDIATE GOVERNMENT SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
-------- -------------------------------------------------------
1996 1995 1994 1993 1992+
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 11.55 $ 10.27 $ 10.40 $ 10.04 $ 10.00
Income from operations:
Net investment income (loss)................ .13 .61 .40 .14 .01
Net realized and unrealized
gain (loss) on investments................ (.19) .67 (.53) .22 .03
-------- ------- ------- ------- -------
Total income (loss) from operations....... (.06) 1.28 (.13) .36 .04
-------- ------- ------- ------- -------
Accumulation unit value, end of period.......... $ 11.49 $ 11.55 $ 10.27 $ 10.40 $ 10.04
======== ======== ======== ======== ========
Total return.................................... (.56)% 12.53% (1.32)% 3.64% .38%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 1,447 $ 1,518 $ 945 $ 1,408 $ 803
Ratio of net investment income (loss)
to average net assets**..................... 2.24% 5.53% 4.06% 1.39% .16%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
** This ratio is annualized for the period ended June 30, 1996.
+ The inception date of this sub-account was December 3, 1992. The total
return is not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
9
<PAGE> 11
WRL SERIES LIFE ACCOUNT
GLOBAL SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: JUNE 30, 1996
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Global Portfolio (3,385,054.315
shares; cost $50,894,174)...................... $ 63,114,178
Accrued transfers from (to) depositor - net........ 230,948
-------------
Total assets................................... 63,345,126
-------------
LIABILITIES:......................................... 0
-------------
Total net assets............................... $ 63,345,126
=============
EQUITY ACCOUNTS:
Policy Owners' equity:
Global sub-account (4,426,776.496416
units; $14.309538 unit value).................. $ 63,345,126
-------------
Total equity................................... $ 63,345,126
=============
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INVESTMENT INCOME: JUNE 30, 1996
<S> <C>
Dividend income.................................. $ 56,589
Capital gain distributions....................... 0
-----------
56,589
EXPENSES:
Mortality and expense risk charges............... 215,188
-----------
Net investment income (loss)................... (158,599)
-----------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from
securities transactions........................ 173,700
Change in unrealized appreciation
(depreciation)................................. 8,618,815
-----------
Net gain (loss) on investments................. 8,792,515
-----------
Net increase (decrease) in equity accounts
resulting from operations.................. $ 8,633,916
===========
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
<S> <C> <C>
OPERATIONS:
Net investment income (loss)...................................................... $ (158,599) $ 1,187,745
Net gain (loss) on investments.................................................... 8,792,515 4,626,003
------------ -------------
Net increase (decrease) in equity accounts
resulting from operations....................................................... 8,633,916 5,813,748
------------ -------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)............................................... 21,963,901 15,012,786
------------ -------------
Less cost of units redeemed:
Administrative charges.......................................................... 2,634,026 4,017,781
Policy loans.................................................................... 612,165 666,264
Surrender benefits.............................................................. 753,092 721,584
Death benefits.................................................................. 33,952 44,234
------------ -------------
4,033,235 5,449,863
------------ -------------
Increase (decrease) in equity accounts from
capital unit transactions..................................................... 17,930,666 9,562,923
------------ -------------
Net increase (decrease) in equity accounts...................................... 26,564,582 15,376,671
Depositors' equity contribution (redemption)...................................... (268,153) 0
EQUITY ACCOUNTS:
Beginning of period............................................................... 37,048,697 21,672,026
------------ -------------
End of period..................................................................... $ 63,345,126 $ 37,048,697
============ =============
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
10
<PAGE> 12
WRL SERIES LIFE ACCOUNT
GLOBAL SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
--------- ----------------------------
1996 1995 1994+
--------- -------- -----------
<S> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 11.95 $ 9.80 $ 10.00
Income from operations:
Net investment income (loss)................ (.04 ) .45 .71
Net realized and unrealized
gain (loss) on investments................ 2.40 1.70 (.91)
--------- -------- -----------
Total income (loss) from operations....... 2.36 2.15 (.20)
--------- -------- -----------
Accumulation unit value, end of period.......... $ 14.31 $ 11.95 $ 9.80
========= ========= =============
Total return.................................... 19.75 % 21.96% (2.02)%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 63,345 $ 37,049 $ 21,672
Ratio of net investment income (loss)
to average net assets**..................... (.65 )% 4.25% 7.39%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
** This ratio is annualized for the period ended June 30, 1996.
+ The inception date of this sub-account was March 1, 1994. The total return
is not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
11
<PAGE> 13
WRL SERIES LIFE ACCOUNT
EQUITY-INCOME SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: JUNE 30, 1996
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Equity-Income Portfolio (3,438,341.648
shares; cost $40,169,631)...................... $ 46,976,019
Accrued transfers from (to) depositor - net........ (26,950)
-------------
Total assets................................... 46,949,069
-------------
LIABILITIES:......................................... 0
-------------
Total net assets............................... $ 46,949,069
=============
EQUITY ACCOUNTS:
Policy Owners' equity:
Equity-Income sub-account (3,210,384.840602
units; $14.624125 unit value).................. $ 46,949,069
-------------
Total equity................................... $ 46,949,069
=============
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INVESTMENT INCOME: JUNE 30, 1996
<S> <C>
Dividend income................................... $ 309,811
Capital gain distributions........................ 0
------------
309,811
EXPENSES:
Mortality and expense risk charges................ 193,347
------------
Net investment income (loss).................... 116,464
------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions.................................... 198,647
Change in unrealized appreciation
(depreciation).................................. 2,355,398
------------
Net gain (loss) on investments.................. 2,554,045
------------
Net increase (decrease) in equity accounts
resulting from operations................... $ 2,670,509
============
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
<S> <C> <C>
OPERATIONS:
Net investment income (loss)...................................................... $ 116,464 $ 1,756,089
Net gain (loss) on investments.................................................... 2,554,045 4,992,475
------------ -------------
Net increase (decrease) in equity accounts resulting from operations.............. 2,670,509 6,748,564
------------ -------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)............................................... 7,909,160 14,236,727
------------ -------------
Less cost of units redeemed:
Administrative charges.......................................................... 2,087,494 3,380,854
Policy loans.................................................................... 525,522 657,750
Surrender benefits.............................................................. 582,519 918,863
Death benefits.................................................................. 83,340 28,153
------------ -------------
3,278,875 4,985,620
------------ -------------
Increase (decrease) in equity accounts from capital unit transactions........... 4,630,285 9,251,107
------------ -------------
Net increase (decrease) in equity accounts...................................... 7,300,794 15,999,671
EQUITY ACCOUNTS:
Beginning of period............................................................... 39,648,275 23,648,604
------------ -------------
End of period..................................................................... $ 46,949,069 $ 39,648,275
============ =============
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
12
<PAGE> 14
WRL SERIES LIFE ACCOUNT
EQUITY-INCOME SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
--------- ------------------------------------------
1996 1995 1994 1993+
--------- -------- -------- --------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 13.74 $ 11.12 $ 11.28 $ 10.00
Income from operations:
Net investment income (loss) .04..... .68 .18 .19
Net realized and unrealized
gain (loss) on investments................ .84 1.94 (.34) 1.09
--------- -------- -------- --------
Total income (loss) from operations....... .88 2.62 (.16) 1.28
--------- -------- -------- --------
Accumulation unit value, end of period.......... $ 14.62 $ 13.74 $ 11.12 $ 11.28
========= ========= ========= =========
Total return.................................... 6.44 % 23.55% (1.42)% 12.81%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 46,949 $ 39,648 $ 23,649 $ 13,343
Ratio of net investment income (loss)
to average net assets**..................... .53 % 5.47% 1.93% 1.89%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
** This ratio is annualized for the period ended June 30, 1996.
+ The inception date of this sub-account was March 1, 1993. The total return
is not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
13
<PAGE> 15
WRL SERIES LIFE ACCOUNT
EMERGING GROWTH SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: JUNE 30, 1996
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Emerging Growth Portfolio (4,831,873.583
shares; cost $65,476,854)........................... $ 92,691,597
Accrued transfers from (to) depositor - net............. 334,747
------------
Total assets........................................ 93,026,344
------------
LIABILITIES:.............................................. 0
------------
Total net assets.................................... $ 93,026,344
============
EQUITY ACCOUNTS:
Policy Owners' equity:
Emerging Growth sub-account (4,778,427.188807
units; $19.467984 unit value)....................... $ 93,026,344
------------
Total equity........................................ $ 93,026,344
============
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INVESTMENT INCOME: JUNE 30, 1996
<S> <C>
Dividend income................................... $ 0
Capital gain distributions........................ 0
------------
0
EXPENSES:
Mortality and expense risk charges................ 349,546
------------
Net investment income (loss).................... (349,546)
------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions.................................... 621,251
Change in unrealized appreciation
(depreciation).................................. 12,661,499
------------
Net gain (loss) on investments.................. 13,282,750
------------
Net increase (decrease) in equity accounts
resulting from operations................... $ 12,933,204
============
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
<S> <C> <C>
OPERATIONS:
Net investment income (loss)...................................................... $ (349,546) $ 2,356,904
Net gain (loss) on investments.................................................... 13,282,750 16,180,870
------------ -------------
Net increase (decrease) in equity accounts resulting from operations.............. 12,933,204 18,537,774
------------ -------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)............................................... 18,256,910 21,556,186
------------ -------------
Less cost of units redeemed:
Administrative charges.......................................................... 3,902,917 5,846,452
Policy loans.................................................................... 935,073 1,387,434
Surrender benefits.............................................................. 1,209,977 1,602,690
Death benefits.................................................................. 20,756 38,971
------------ -------------
6,068,723 8,875,547
------------ -------------
Increase (decrease) in equity accounts from capital unit transactions........... 12,188,187 12,680,639
------------ -------------
Net increase (decrease) in equity accounts...................................... 25,121,391 31,218,413
EQUITY ACCOUNTS:
Beginning of period............................................................... 67,904,953 36,686,540
------------ -------------
End of period..................................................................... $ 93,026,344 $ 67,904,953
============ =============
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
14
<PAGE> 16
WRL SERIES LIFE ACCOUNT
EMERGING GROWTH SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
-------- ------------------------------------------
1996 1995 1994 1993+
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 16.56 $ 11.38 $ 12.40 $ 10.00
Income from operations:
Net investment income (loss)................ (.08) .65 (.09) (.09)
Net realized and unrealized
gain (loss) on investments................ 2.99 4.53 (.93) 2.49
-------- -------- -------- --------
Total income (loss) from operations....... 2.91 5.18 (1.02) 2.40
-------- -------- -------- --------
Accumulation unit value, end of period.......... $ 19.47 $ 16.56 $ 11.38 $ 12.40
========= ========= ========= =========
Total return.................................... 17.57% 45.49% (8.18)% 23.96%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 93,026 $ 67,905 $ 36,687 $ 18,620
Ratio of net investment income (loss)
to average net assets**..................... (.88)% 4.66% (.86)% (.77)%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
** This ratio is annualized for the period ended June 30, 1996.
+ The inception date of this sub-account was March 1, 1993. The total return
is not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
15
<PAGE> 17
WRL SERIES LIFE ACCOUNT
AGGRESSIVE GROWTH SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: JUNE 30, 1996
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Aggressive Growth Portfolio (3,181,289.571
shares; cost $40,488,302)......................... $ 44,572,500
Accrued transfers from (to) depositor - net........... 161,555
------------
Total assets...................................... 44,734,055
------------
LIABILITIES:............................................ 0
------------
Total net assets.................................. $ 44,734,055
============
EQUITY ACCOUNTS:
Policy Owners' equity:
Aggressive Growth sub-account (3,165,054.132847
units; $14.133741 unit value)..................... $ 44,734,055
------------
Total equity...................................... $ 44,734,055
============
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INVESTMENT INCOME: JUNE 30, 1996
<S> <C>
Dividend income..................................... $ 0
Capital gain distributions.......................... 0
------------
0
EXPENSES:
Mortality and expense risk charges.................. 176,347
------------
Net investment income (loss)...................... (176,347)
------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities
transactions...................................... 981,033
Change in unrealized appreciation
(depreciation).................................... 1,066,974
------------
Net gain (loss) on investments.................... 2,048,007
------------
Net increase (decrease) in equity accounts
resulting from operations..................... $ 1,871,660
============
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
<S> <C> <C>
OPERATIONS:
Net investment income (loss)...................................................... $ (176,347) $ 663,994
Net gain (loss) on investments.................................................... 2,048,007 4,424,350
------------ -------------
Net increase (decrease) in equity accounts resulting from operations.............. 1,871,660 5,088,344
------------ -------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)............................................... 13,932,534 23,169,917
------------ -------------
Less cost of units redeemed:
Administrative charges.......................................................... 2,742,009 2,568,298
Policy loans.................................................................... 421,765 627,821
Surrender benefits.............................................................. 807,116 712,307
Death benefits.................................................................. 3,218 80,922
------------ -------------
3,974,108 3,989,348
------------ -------------
Increase (decrease) in equity accounts from capital unit transactions........... 9,958,426 19,180,569
------------ -------------
Net increase (decrease) in equity accounts...................................... 11,830,086 24,268,913
Depositors' equity contribution (redemption)...................................... 0 (274,290)
EQUITY ACCOUNTS:
Beginning of period............................................................... 32,903,969 8,909,346
------------ -------------
End of period..................................................................... $ 44,734,055 $ 32,903,969
============ =============
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
16
<PAGE> 18
WRL SERIES LIFE ACCOUNT
AGGRESSIVE GROWTH SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
-------- ------------------------
1996 1995 1994+
-------- -------- -------
<S> <C> <C> <C>
Accumulation unit value, beginning of period.......... $ 13.43 $ 9.82 $ 10.00
Income from operations:
Net investment income (loss)...................... (.06) .37 (.06)
Net realized and unrealized
gain (loss) on investments...................... .76 3.24 (.12)
-------- -------- -------
Total income (loss) from operations............. .70 3.61 (.18)
-------- -------- -------
Accumulation unit value, end of period................ $ 14.13 $ 13.43 $ 9.82
========= ========= ========
Total return.......................................... 5.27% 36.79% (1.85)%
Ratios and supplemental data:
Net assets at end of period (in thousands).......... $ 44,734 $ 32,904 $ 8,909
Ratio of net investment income (loss)
to average net assets**........................... (.88)% 2.93% (.60)%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
** This ratio is annualized for the period ended June 30, 1996.
+ The inception date of this sub-account was March 1, 1994. The total return
is not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
17
<PAGE> 19
WRL SERIES LIFE ACCOUNT
BALANCED SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: JUNE 30, 1996
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Balanced Portfolio (451,225.876 shares;
cost $4,534,788).................................... $ 4,927,949
Accrued transfers from (to) depositor - net............. 20,376
-----------
Total assets........................................ 4,948,325
-----------
LIABILITIES:.............................................. 0
-----------
Total net assets.................................... $ 4,948,325
===========
EQUITY ACCOUNTS:
Policy Owners' equity:
Balanced sub-account (432,240.015022 units;
$11.448095 unit value).............................. $ 4,948,325
-----------
Total equity........................................ $ 4,948,325
===========
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INVESTMENT INCOME: JUNE 30, 1996
<S> <C>
Dividend income................................... $ 31,143
Capital gain distributions........................ 0
----------
31,143
EXPENSES:
Mortality and expense risk charges................ 19,764
----------
Net investment income (loss).................... 11,379
----------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions.................................... 40,303
Change in unrealized appreciation (depreciation).. 80,561
----------
Net gain (loss) on investments.................. 120,864
----------
Net increase (decrease) in equity accounts
resulting from operations................... $ 132,243
==========
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
<S> <C> <C>
OPERATIONS:
Net investment income (loss)...................................................... $ 11,379 $ 102,635
Net gain (loss) on investments.................................................... 120,864 401,549
------------ -----------
Net increase (decrease) in equity accounts resulting from operations.............. 132,243 504,184
------------ -----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)............................................... 1,568,208 1,545,514
------------ -----------
Less cost of units redeemed:
Administrative charges.......................................................... 252,952 327,290
Policy loans.................................................................... 34,142 29,025
Surrender benefits.............................................................. 37,222 27,726
Death benefits.................................................................. 3,029 14,811
------------ -----------
327,345 398,852
------------ -----------
Increase (decrease) in equity accounts from capital unit transactions........... 1,240,863 1,146,662
------------ -----------
Net increase (decrease) in equity accounts...................................... 1,373,106 1,650,846
Depositors' equity contribution (redemption)...................................... (220,175) 0
EQUITY ACCOUNTS:
Beginning of period............................................................... 3,795,394 2,144,548
------------ -----------
End of period..................................................................... $ 4,948,325 $ 3,795,394
============ ===========
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
18
<PAGE> 20
WRL SERIES LIFE ACCOUNT
BALANCED SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
------- -----------------------
1996 1995 1994+
------- ------- -------
<S> <C> <C> <C>
Accumulation unit value, beginning of period.......... $11.13 $ 9.37 $ 10.00
Income from operations:
Net investment income (loss)...................... .03 .37 .22
Net realized and unrealized
gain (loss) on investments...................... .29 1.39 (.85)
------- ------- -------
Total income (loss) from operations............. .32 1.76 (.63)
------- ------- -------
Accumulation unit value, end of period................ $11.45 $ 11.13 $ 9.37
======== ======== ========
Total return.......................................... 2.90 % 18.73% (6.29)%
Ratios and supplemental data:
Net assets at end of period (in thousands).......... $4,948 $ 3,795 $ 2,145
Ratio of net investment income (loss)
to average net assets**........................... .51 % 3.59% 2.55%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
** This ratio is annualized for the period ended June 30, 1996.
+ The inception date of this sub-account was March 1, 1994. The total return
is not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
19
<PAGE> 21
WRL SERIES LIFE ACCOUNT
UTILITY SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: JUNE 30, 1996
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Utility Portfolio (331,481.107 shares;
cost $3,542,652).................................... $ 3,826,996
Accrued transfers from (to) depositor - net............. 525
-----------
Total assets........................................ 3,827,521
-----------
LIABILITIES:.............................................. 0
-----------
Total net assets.................................... $ 3,827,521
===========
EQUITY ACCOUNTS:
Policy Owners' equity:
Utility sub-account (312,538.027823 units;
$12.246576 unit value).............................. $ 3,827,521
-----------
Total equity........................................ $ 3,827,521
===========
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INVESTMENT INCOME: JUNE 30, 1996
<S> <C>
Dividend income................................. $ 24,420
Capital gain distributions...................... 0
----------
24,420
EXPENSES:
Mortality and expense risk charges.............. 14,890
----------
Net investment income (loss).................. 9,530
----------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from
securities transactions....................... 77,773
Change in unrealized appreciation
(depreciation)................................ 39,381
----------
Net gain (loss) on investments................ 117,154
----------
Net increase (decrease) in equity accounts
resulting from operations................. $ 126,684
==========
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..................................................... $ 9,530 $ 88,634
Net gain (loss) on investments................................................... 117,154 336,528
----------- -----------
Net increase (decrease) in equity accounts resulting from operations............. 126,684 425,162
----------- -----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed).............................................. 1,567,265 1,368,262
----------- -----------
Less cost of units redeemed:
Administrative charges......................................................... 184,588 221,419
Policy loans................................................................... 34,912 26,862
Surrender benefits............................................................. 43,877 126,576
Death benefits................................................................. 1,489 2,896
----------- -----------
264,866 377,753
----------- -----------
Increase (decrease) in equity accounts from capital unit transactions.......... 1,302,399 990,509
----------- -----------
Net increase (decrease) in equity accounts..................................... 1,429,083 1,415,671
Depositors' equity contribution (redemption)..................................... (232,644) 0
EQUITY ACCOUNTS:
Beginning of period.............................................................. 2,631,082 1,215,411
----------- -----------
End of period.................................................................... $ 3,827,521 $ 2,631,082
=========== ===========
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
20
<PAGE> 22
WRL SERIES LIFE ACCOUNT
UTILITY SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
------- -----------------------
1996 1995 1994+
------- ------- -------
<S> <C> <C> <C>
Accumulation unit value, beginning of period.......... $11.77 $ 9.49 $ 10.00
Income from operations:
Net investment income (loss)...................... .04 .49 .29
Net realized and unrealized
gain (loss) on investment....................... .44 1.79 (.80)
------- ------- -------
Total income (loss) from operations............. .48 2.28 (.51)
------- ------- -------
Accumulation unit value, end of period................ $12.25 $ 11.77 $ 9.49
======== ======== ========
Total return.......................................... 4.01 % 24.14% (5.15)%
Ratios and supplemental data:
Net assets at end of period (in thousands).......... $3,828 $ 2,631 $ 1,215
Ratio of net investment income (loss)
to average net assets**........................... .57 % 4.57% 3.09%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
** This ratio is annualized for the period ended June 30, 1996.
+ The inception date for this sub-account was March 1, 1994. The total return
is not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
21
<PAGE> 23
WRL SERIES LIFE ACCOUNT
TACTICAL ASSET ALLOCATION SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: JUNE 30, 1996
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Tactical Asset Allocation Portfolio (1,149,267.304
shares; cost $12,874,402)........................... $ 13,768,609
Accrued transfers from (to) depositor - net............. 32,871
------------
Total assets........................................ 13,801,480
------------
LIABILITIES:.............................................. 0
------------
Total net assets.................................... $ 13,801,480
============
EQUITY ACCOUNTS:
Policy Owners' equity:
Tactical Asset Allocation sub-account
(1,111,174.151903 units; $12.420627 unit value)..... $ 13,801,480
------------
Total equity........................................ $ 13,801,480
============
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INVESTMENT INCOME: JUNE 30, 1996
<S> <C>
Dividend income................................... $ 73,812
Capital gain distributions........................ 0
----------
73,812
EXPENSES:
Mortality and expense risk charges................ 54,382
----------
Net investment income (loss).................... 19,430
----------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions.................................... 169,581
Change in unrealized appreciation (depreciation).. 278,487
----------
Net gain (loss) on investments.................. 448,068
----------
Net increase (decrease) in equity accounts
resulting from operations................... $ 467,498
==========
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1996 DECEMBER 31, 1995*
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..................................................... $ 19,430 $ 314,171
Net gain (loss) on investments................................................... 448,068 733,874
------------ ------------
Net increase (decrease) in equity accounts resulting from operations............. 467,498 1,048,045
------------ ------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed).............................................. 5,154,770 9,081,189
------------ ------------
Less cost of units redeemed:
Administrative charges......................................................... 460,689 434,848
Policy loans................................................................... 171,291 145,685
Surrender benefits............................................................. 634,621 70,630
Death benefits................................................................. 44 22,440
------------ ------------
1,266,645 673,603
------------ ------------
Increase (decrease) in equity accounts from capital unit transactions.......... 3,888,125 8,407,586
------------ ------------
Net increase (decrease) in equity accounts..................................... 4,355,623 9,455,631
Depositors' equity contribution (redemption)..................................... 0 (9,774)
EQUITY ACCOUNTS:
Beginning of period.............................................................. 9,445,857 0
------------ ------------
End of period.................................................................... $ 13,801,480 $ 9,445,857
============ ============
</TABLE>
* The inception of this sub-account was January 3, 1995.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
22
<PAGE> 24
WRL SERIES LIFE ACCOUNT
TACTICAL ASSET ALLOCATION SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
-------- -----------
1996 1995+
-------- -----------
<S> <C> <C>
Accumulation unit value, beginning of period................. $ 11.90 $ 10.00
Income from operations:
Net investment income (loss)............................. .02 .61
Net realized and unrealized
gain (loss) on investments............................. .50 1.29
-------- -----------
Total income (loss) from operations.................... .52 1.90
-------- -----------
Accumulation unit value, end of period....................... $ 12.42 $ 11.90
========= =============
Total return................................................. 4.35% 19.03%
Ratios and supplemental data:
Net assets at end of period (in thousands)................. $ 13,801 $ 9,446
Ratio of net investment income (loss)
to average net assets**.................................. .32% 5.47%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
** This ratio is annualized for the period ended June 30, 1996.
+ The inception date of this sub-account was January 3, 1995. The total return
is not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
23
<PAGE> 25
WRL SERIES LIFE ACCOUNT
C.A.S.E. GROWTH SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: JUNE 30, 1996
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
C.A.S.E. Growth Portfolio
(47,162.079 shares;
cost $ 597,303)........................... $ 587,013
Accrued transfers from (to) depositor - net... 71,110
-------------
Total assets.............................. 658,123
-------------
LIABILITIES:.................................... 0
-------------
Total net assets.......................... $ 658,123
==============
EQUITY ACCOUNTS:
Policy Owners' equity:
C.A.S.E. Growth sub-account
(64,197.404527 units;
$ 9.867294 unit value).................... $ 633,455
Depositors' equity:
C.A.S.E. Growth sub-account
(2,500.000000 units;
$ 9.867294 unit value).................... 24,668
-------------
Total equity.............................. $ 658,123
==============
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
PERIOD ENDED
INVESTMENT INCOME: JUNE 30, 1996*
<S> <C>
Dividend income............................ $ 0
Capital gain distributions................. 0
--------------
0
EXPENSES:
Mortality and expense risk charges......... 534
--------------
Net investment income (loss)............. (534)
--------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions............................. 0
Change in unrealized appreciation
(depreciation)........................... (10,289)
--------------
Net gain (loss) on investments........... (10,289)
--------------
Net increase (decrease) in equity
accounts resulting from operations... $ (10,823)
===============
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
PERIOD ENDED
JUNE 30, 1996*
<S> <C>
OPERATIONS:
Net investment income (loss)................................................................................... $ (534)
Net gain (loss) on investments................................................................................. (10,289)
--------------
Net increase (decrease) in equity accounts
resulting from operations.................................................................................... (10,823)
--------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)............................................................................ 651,204
--------------
Less cost of units redeemed:
Administrative charges....................................................................................... 5,456
Policy loans................................................................................................. 1,802
Surrender benefits........................................................................................... 0
Death benefits............................................................................................... 0
--------------
7,258
--------------
Increase (decrease) in equity accounts from
capital unit transactions.................................................................................. 643,946
--------------
Net increase (decrease) in equity accounts................................................................... 633,123
Depositors' equity contribution (redemption)................................................................... 25,000
EQUITY ACCOUNTS:
Beginning of period............................................................................................ 0
--------------
End of period.................................................................................................. $ 658,123
===============
</TABLE>
* The inception of this sub-account was May 1, 1996.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
24
<PAGE> 26
WRL SERIES LIFE ACCOUNT
C.A.S.E. GROWTH SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
JUNE 30
-------
1996+
-------
<S> <C>
Accumulation unit value, beginning of period................. $10.00
Income from operations:
Net investment income (loss)............................. (.01)
Net realized and unrealized
gain (loss) on investments............................. (.12)
-------
Total income (loss) from operations.................... (.13)
-------
Accumulation unit value, end of period....................... $ 9.87
=======
Total return................................................. (1.33)%
Ratios and supplemental data:
Net assets at end of period (in thousands)................. $ 658
Ratio of net investment income (loss)
to average net assets**.................................. (.50)%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
** This ratio is annualized for the period ended June 30, 1996.
+ The inception date of this sub-account was May 1, 1996. The total return is
not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
25
<PAGE> 27
WRL SERIES LIFE ACCOUNT
VALUE EQUITY SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: JUNE 30, 1996
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Value Equity Portfolio
(32,128.154 shares;
cost $ 321,510)........................... $ 323,752
Accrued transfers from (to) depositor - net... (9,638)
-------------
Total assets.............................. 314,114
-------------
LIABILITIES:.................................... 0
-------------
Total net assets.......................... $ 314,114
==============
EQUITY ACCOUNTS:
Policy Owners' equity:
Value Equity sub-account
(11,216.866822 units;
$ 10.062305 unit value)................... $ 112,868
Depositors' equity:
Value Equity sub-account
(20,000.00000 units;
$ 10.062305 unit value)................... 201,246
-------------
Total equity.............................. $ 314,114
==============
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
PERIOD ENDED
INVESTMENT INCOME: JUNE 30, 1996*
<S> <C>
Dividend income............................ $ 0
Capital gain distributions................. 0
--------------
0
EXPENSES:
Mortality and expense risk charges......... 359
--------------
Net investment income (loss)............. (359)
--------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions............................. 0
Change in unrealized appreciation
(depreciation)........................... 2,242
--------------
Net gain (loss) on investments........... 2,242
--------------
Net increase (decrease) in equity
accounts resulting from operations... $ 1,883
===============
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
PERIOD ENDED
JUNE 30, 1996*
<S> <C>
OPERATIONS:
Net investment income (loss)................................................................................... $ (359)
Net gain (loss) on investments................................................................................. 2,242
--------------
Net increase (decrease) in equity accounts
resulting from operations.................................................................................... 1,883
--------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)............................................................................ 112,564
--------------
Less cost of units redeemed:
Administrative charges....................................................................................... 333
Policy loans................................................................................................. 0
Surrender benefits........................................................................................... 0
Death benefits............................................................................................... 0
--------------
333
--------------
Increase (decrease) in equity accounts from
capital unit transactions.................................................................................. 112,231
--------------
Net increase (decrease) in equity accounts................................................................... 114,114
Depositors' equity contribution (redemption)................................................................... 200,000
EQUITY ACCOUNTS:
Beginning of period............................................................................................ 0
--------------
End of period.................................................................................................. $ 314,114
===============
</TABLE>
* The inception of this sub-account was May 1, 1996.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
26
<PAGE> 28
WRL SERIES LIFE ACCOUNT
VALUE EQUITY SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
JUNE 30
-------
1996+
-------
<S> <C>
Accumulation unit value, beginning of period................. $10.00
Income from operations:
Net investment income (loss)............................. .00
Net realized and unrealized
gain (loss) on investments............................. .06
-------
Total income (loss) from operations.................... .06
-------
Accumulation unit value, end of period....................... $10.06
========
Total return................................................. .62 %
Ratios and supplemental data:
Net assets at end of period (in thousands)................. $ 314
Ratio of net investment income (loss)
to average net assets**.................................. (.84)%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
** This ratio is annualized for the period ended June 30, 1996.
+ The inception date of this sub-account was May 1, 1996. The total return is
not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
27
<PAGE> 29
WRL SERIES LIFE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
- --------------------------------------------------------------------------------
JUNE 30, 1996
NOTE 1 - ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES
The WRL Series Life Account (the "Life Account") was established as a
variable life insurance separate account of Western Reserve Life Assurance Co.
of Ohio ("WRL") and is registered as a unit investment trust ("Trust") under the
Investment Company Act of 1940, as amended. The Life Account contains thirteen
investment options referred to as sub-accounts. Each sub-account invests in the
corresponding portfolio of the WRL Series Fund, Inc. (the "Fund"), a registered
management investment company under the Investment Company Act of 1940, as
amended. These portfolios and their respective investment management
organizations are as follows:
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT MANAGER
--------- ------------------------
<S> <C>
Money Market J.P. Morgan Investment
Management Inc.
Bond Janus Capital Corporation
("JCC")
Growth JCC
Short-to-Intermediate AEGON USA Investment
Government Management, Inc. ("AEGON
Management")
Global JCC
Equity-Income Luther King Capital
Management Corporation
Emerging Growth Van Kampen American Capital
Asset Management, Inc.
Aggressive Growth Fred Alger Management, Inc.
Balanced AEGON Management
Utility Federated Investment
Counseling
Tactical Asset Dean Investment Associates
Allocation
C.A.S.E. Growth C.A.S.E. Management, Inc.
Value Equity NWQ Investment Management
Company, Inc.
</TABLE>
WRL and AEGON Management are indirectly wholly-owned subsidiaries of AEGON
USA, Inc., which is an indirect wholly-owned subsidiary of AEGON nv, a
Netherlands corporation.
On May 1, 1996 WRL made an initial contribution to the Life Account. The
amount of the contribution and units received from the corresponding
sub-accounts are as follows:
<TABLE>
<CAPTION>
SUB-ACCOUNT CONTRIBUTION UNITS
--------------- ------------ ------
<S> <C> <C>
C.A.S.E. Growth $ 25,000 2,500.000000
Value Equity 200,000 20,000.000000
</TABLE>
The Life Account holds assets to support the benefits under flexible
premium variable universal life insurance policies (the "Policies") issued by
WRL, which issued the first of such Policies on October 3, 1986. The Life
Account's equity transactions are accounted for using the appropriate effective
date at the corresponding accumulation unit value.
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
The following significant accounting policies, which are in conformity with
generally accepted accounting principles for unit investment trusts, have been
consistently used in preparation of the Trust's financial statements.
A. VALUATION OF INVESTMENTS
The investments in the Fund's shares are stated at the closing net asset
value ("NAV") per share as determined by the Fund on June 30, 1996.
Investment transactions are accounted for on the trade date, using the Fund
NAV next determined after receipt of sale or redemption order without sales
charges. Dividend income and capital gain distributions are recorded on the
ex-dividend date. The cost of investments sold is determined on a first-in,
first-out basis.
B. FEDERAL INCOME TAXES
The operations of the Life Account are a part of and are taxed with the
total operations of WRL, which is taxed as a life insurance company under
the Internal Revenue Code. Under current law, the investment income of the
Life Account, including realized and unrealized capital gains, is not
taxable to WRL. Accordingly, no provision for Federal income taxes has been
made.
- --------------------------------------------------------------------------------
28
<PAGE> 30
WRL SERIES LIFE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 2 - CHARGES AND DEDUCTIONS
Charges are assessed by WRL in connection with issuance and administration
of the Policies.
A. POLICY CHARGES
Under some forms of the Policies, sales and other administrative charges are
deducted by WRL prior to allocation of policyowner payments to the
sub-accounts. Thereafter, monthly administrative charges are deducted from
the sub-accounts, some of which continue only during the first policy year.
Contingent surrender charges may also apply.
Under the other forms of the Policies, such "front-end" and other
administrative charges are not deducted prior to allocation of the initial
premium payment but may reside as contingent surrender charges.
Under all forms of the Policy, monthly charges against policy cash values
are made to compensate WRL for costs of insurance provided.
B. LIFE ACCOUNT CHARGES
A daily charge equal to an annual rate of 0.90% of average daily net assets
of the Life Account is assessed to compensate WRL for assumption of
mortality and expense risks in connection with issuance and administration
of the Policies. This charge (not assessed at the individual policy level)
effectively reduces the value of a unit outstanding during the year.
NOTE 3 - DIVIDENDS AND DISTRIBUTIONS
Dividends of the Fund's Money Market Portfolio are declared daily and
reinvested monthly. Dividends of the remaining portfolios are declared and
reinvested semiannually, while capital gain distributions are declared and
reinvested annually. Dividends and distributions of the Fund are generally paid
to and reinvested by the Life Account the next business day after declaration.
NOTE 4 - OTHER MATTERS
As of June 30, 1996 the equity accounts include net unrealized appreciation
(depreciation) on investments as follows:
<TABLE>
<S> <C>
SUB-ACCOUNT
- ---------------
Money Market........................... $ n/a
Bond................................... (540,606)
Growth................................. 97,945,666
Short-to-Intermediate Government....... (1,723)
Global................................. 12,220,004
Equity-Income.......................... 6,806,388
Emerging Growth........................ 27,214,743
Aggressive Growth...................... 4,084,198
Balanced............................... 393,161
Utility................................ 284,344
Tactical Asset Allocation.............. 894,207
C.A.S.E. Growth........................ (10,290)
Value Equity........................... 2,242
</TABLE>
- --------------------------------------------------------------------------------
29
<PAGE> 31
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<PAGE> 32
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<PAGE> 33
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<PAGE> 34
- --------------------------------------------------------------------------------
W R L S E R I E S L I F E A C C O U N T
- --------------------------------------------------------------------------------
OFFICE OF THE WRL SERIES LIFE ACCOUNT
201 Highland Avenue
Largo, FL 33770-2597
1-800-851-9777
Ext. 6510
---------------------------------------------
DISTRIBUTOR:
InterSecurities, Inc.
201 Highland Avenue
Largo, FL 33770-2597
---------------------------------------------
INSURER:
Western Reserve Life Assurance Co. of Ohio
201 Highland Avenue
Largo, FL 33770-2597
---------------------------------------------
INDEPENDENT ACCOUNTANTS:
Price Waterhouse LLP
1055 Broadway
Kansas City, MO 64105
<PAGE> 35
THIS MATERIAL IS FOR POLICYHOLDER'S
REPORTING PURPOSES ONLY AND SHALL NOT BE
USED IN CONNECTION WITH A SOLICITATION,
OFFER OR ANY PROPOSED SALE OR PURCHASE
OF SECURITIES. THIS MATERIAL MUST BE
PRECEDED OR ACCOMPANIED BY A PROSPECTUS.
WRL Logo
- --------------------------------------------------------------------------------
Western Reserve Life Assurance Co. of Ohio
Distributor: InterSecurities, Inc.
201 Highland Avenue - Largo, FL 33770-2597
August 1996
ACC00003-S (8/96)
