As filed with the Securities and Exchange Commission on December 23, 1996
Registration File Nos. 33-69138/811-4420
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------------------
POST-EFFECTIVE AMENDMENT NO. 8
FORM S-6
---------------------------------
FOR REGISTRATION UNDER THE SECURITIES ACT
OF 1933 OF SECURITIES OF UNIT INVESTMENT TRUSTS
REGISTERED ON FORM N-8B-2
---------------------------------
WRL SERIES LIFE ACCOUNT
(Exact Name of Trust)
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
(Name of Depositor)
201 Highland Avenue
Largo, Florida 33770
(Complete Address of Depositor's Principal Executive Offices)
Thomas E. Pierpan, Esq.
Vice President and Counsel
Western Reserve Life Assurance Co. of Ohio
201 Highland Avenue
Largo, Florida 33770
(Name and Complete Address of Agent for Service)
Copies to:
Stephen E. Roth, Esq.
Sutherland, Asbill & Brennan
1275 Pennsylvania Avenue, N.W.
Washington, D.C. 20004-2404
---------------------------------
It is proposed that this filing will become effective (check appropriate space):
[ ] immediately upon filing pursuant to paragraph (b) of Rule 485
[X] on DECEMBER 31, 1996, pursuant to paragraph (b) of Rule 485
[ ] 60 days after filing pursuant to paragraph (a) of Rule 485
[ ] on DATE, pursuant to paragraph (a) of Rule 485
Pursuant to Rule 24f-2, the Registrant has chosen to register an indefinite
amount of securities being offered. The Rule 24f-2 Notice for Registrant's most
recent fiscal year was filed on February 28, 1996.
<PAGE>
CROSS REFERENCE TO ITEMS REQUIRED
BY FORM N-8B-2
N-8B-2 ITEM CAPTION IN PROSPECTUS
- ----------- ---------------------
1 Cover Page; The Series Account
2 Cover Page; Western Reserve Life Assurance Co. of Ohio
3 Not Applicable
4 Distribution of the Policies
5 The Series Account
6 The Series Account
7 Not Applicable
8 Not Applicable
9 Legal Proceedings
10 Introduction; Policy Benefits; Payment and Allocation of
Premiums; Investments of the Series Account; Policy Rights
11 The Series Account; WRL Series Fund, Inc.
12 The Series Account; WRL Series Fund, Inc.
13 Charges and Deductions; The Series Account; Investments of
the Series Account
14 Introduction; Allocation of Premiums and Cash Value
15 Allocation of Premiums and Cash Value
16 The Series Account
17 Cash Value; The Series Account; Policy Rights
18 Payment and Allocation of Premiums; Cash Value
19 Voting Rights of the Series Account; Reports and Records
(i)
<PAGE>
N-8B-2 ITEM CAPTION IN PROSPECTUS
- ----------- ---------------------
20 Not Applicable
21 Loan Privileges
22 Not Applicable
23 Safekeeping of the Series Account's Assets
24 Policy Rights
25 Western Reserve Life Assurance Co. of Ohio
26 Not Applicable
27 Western Reserve Life Assurance Co. of Ohio; The Series
Account; WRL Series Fund, Inc.
28 Western Reserve Life Assurance Co. of Ohio; Executive
Officers and Directors of Western Reserve Life Assurance
Co. of Ohio
29 Western Reserve Life Assurance Co. of Ohio
30 Not Applicable
31 Not Applicable
32 Not Applicable
33 Not Applicable
34 Not Applicable
35 Western Reserve Life Assurance Co. of Ohio
36 Not Applicable
37 Not Applicable
38 Distribution of the Policies
39 Distribution of the Policies
(ii)
<PAGE>
N-8B-2 ITEM CAPTION IN PROSPECTUS
- ----------- ---------------------
40 Not Applicable
41 Distribution of the Policies; Western Reserve Life
Assurance Co. of Ohio
42 Not Applicable
43 Not Applicable
44 Cash Value
45 Not Applicable
46 Cash Value
47 Introduction; Allocation of Premiums and Cash Value
48 Not Applicable
49 Not Applicable
50 Not Applicable
51 Introduction; Western Reserve Life Assurance Co. of Ohio;
Policy Benefits; Charges and Deductions
52 The Series Account; WRL Series Fund, Inc.
53 Federal Tax Matters
54 Not Applicable
55 Not Applicable
56 Not Applicable
57 Not Applicable
58 Not Applicable
59 Not Applicable
(iii)
<PAGE>
SUPPLEMENT DATED JANUARY 1, 1997
TO
PROSPECTUS DATED MAY 1, 1996
WRL FREEDOM WEALTH PROTECTOR \register mark\
Effective January 1, 1997, WRL Investment Management, Inc. ("WRL
Management"), a Florida corporation, will replace Western Reserve Life Assurance
Co. of Ohio ("Western Reserve") as the investment adviser for the WRL Series
Fund, Inc. (the "Fund"). WRL Management is a wholly-owned subsidiary of Western
Reserve. Throughout the Prospectus, wherever Western Reserve is referred to as
the Fund's investment adviser, Western Reserve will be replaced with WRL
Management.
Also, effective January 1, 1997, two new investment options will be made
available through this Policy. These new options are the International Equity
Portfolio and the U.S. Equity Portfolio. Details concerning these two new
Portfolios follow below. Throughout the Prospectus wherever reference is made to
THIRTEEN Sub-Accounts or Portfolios, it will now mean FIFTEEN Sub-Accounts or
Portfolios. Wherever reference is made to "twenty-one portfolios" of the Fund,
it will now mean "twenty-two portfolios" of the Fund.
THE FOLLOWING INFORMATION IS ADDED TO PAGE 5, FOURTH PARAGRAPH, AFTER THE FIRST
SENTENCE UNDER THE HEADING "INTRODUCTION - 12. WHAT CHARGES ARE ASSESSED IN
CONNECTION WITH THE POLICY?"
Effective January 1, 1997, the Fund has adopted a Plan of Distribution pursuant
to Rule 12b-1 under the 1940 Act ("Distribution Plan") and pursuant to the Plan,
has entered into a Distribution Agreement with InterSecurities, Inc. ("ISI"),
principal underwriter for the Fund.
Under the Distribution Plan, the Fund, on behalf of the Portfolios, is
authorized to pay to various service providers, as direct payment for expenses
incurred in connection with the distribution of a Portfolio's shares, amounts
equal to actual expenses associated with distributing a Portfolio's shares, up
to a maximum rate of 0.15% (fifteen one-hundredths of one percent) on an
annualized basis of the average daily net assets. This fee is measured and
accrued daily and paid monthly. ISI has determined that it will not seek payment
by the Fund of distribution expenses with respect to any Portfolio during the
fiscal year ending December 31, 1997. Prior to ISI's seeking reimbursement,
Policyowners will be notified in advance.
THE FOLLOWING INFORMATION SUPPLEMENTS INFORMATION PROVIDED ON PAGES 16-18 OF THE
PROSPECTUS UNDER THE HEADING "INVESTMENTS OF THE SERIES ACCOUNT - WRL SERIES
FUND, INC.":
WRL Management serves as investment adviser to each Portfolio of the Fund and
manages their assets in accordance with policies, programs and guidelines
established by the Board of Directors of the Fund.
Beginning January 1, 1997, the Fund will offer two additional portfolios
("Portfolios"). The investment objective and policies of each new Portfolio are
summarized below. There is no assurance that the Portfolios will achieve their
stated objective. More detailed information, including a description of risks,
can be found in the prospectus for the Fund, which should be read carefully.
INTERNATIONAL EQUITY PORTFOLIO: This Portfolio seeks long-term growth of
capital by investing primarily in the common stock of foreign issuers traded on
overseas exchanges and in foreign over-the-counter markets.
U.S. EQUITY PORTFOLIO: This Portfolio seeks long-term growth
of capital by investing primarily in equity securities of U.S.
companies.
<PAGE>
Scottish Equitable Investment Management Limited ("Scottish Equitable")
serves as a Co-Sub-Adviser to the International Equity Portfolio. Scottish
Equitable, located at Edinburgh Park, Edinburgh EH12 9SE, Scotland, is a
wholly-owned subsidiary of Scottish Equitable plc, successor to Scottish
Equitable Life Assurance Society, which was founded in Edinburgh in 1831.
Scottish Equitable is also an indirect wholly-owned subsidiary of AEGON nv. As
of December 31, 1995, Scottish Equitable had approximately $15.9 billion in
assets under management. Scottish Equitable has not previously advised a
U.S.-registered mutual fund. Scottish Equitable currently provides investment
advisory and management services to certain of its affiliates and to external
organizations. WRL Management receives monthly compensation at the annual rate
of 1.00% of the aggregate average daily net assets of the International Equity
Portfolio. From this amount, Scottish Equitable receives 0.50% of average daily
net assets of the Portfolio managed by Scottish Equitable, less 50% of the
amount of excess expenses attributable to such assets.
GE Investment Management Incorporated ("GEIM") also serves as a
Co-Sub-Adviser to the International Equity Portfolio and as Sub-Adviser to the
U.S. Equity Portfolio. GEIM, located at 3003 Summer Street, Stamford,
Connecticut 06905, is a wholly-owned subsidiary of General Electric Company
("GE"). GEIM's principal officers and directors serve in similar capacities with
respect to General Electric Investment Corporation ("GEIC," and, together with
GEIM and their predecessors, collectively referred to as "GE Investments"),
which like GEIM is a wholly-owned subsidiary of GE. GE Investments has roughly
70 years of investment management experience, and has managed mutual funds since
1935. As of June 30, 1996, GEIM and GEIC together managed assets in excess of
$55 billion. GE Investments provides investment management services to external
organizations and to certain of its affiliates. WRL Management receives monthly
compensation at the annual rate of 1.00% of the aggregate average daily net
assets of the International Equity Portfolio. From this amount, GEIM, receives
0.50% of average daily net assets of the Portfolio managed by GEIM, less 50% of
amount of excess expenses attributable to such assets.
With respect to the U.S. Equity Portfolio, WRL Management and GEIM will
divide equally monthly compensation at the current annual rate of 0.80% of the
aggregate average daily net assets of the U.S. Equity Portfolio. GEIM's
compensation will be reduced by 50% of the amount paid by WRL Management on
behalf of the U.S. Equity Portfolio pursuant to any expense limitation or other
reimbursement. Any amount borne by GEIM pursuant to any expense limitation
constitutes an agreement between the Investment Adviser and GEIM only for the
first twelve months following each Portfolio's commencement of operations.
Thereafter, any such arrangements will be as mutually agreed upon by GEIM and
the Investment Adviser.
THE LAST PARAGRAPH ON PAGE 21 UNDER THE HEADING "PAYMENT AND ALLOCATION OF
PREMIUMS - DOLLAR COST AVERAGING" HAS BEEN CHANGED AS FOLLOWS:
Although Dollar Cost Averaging is not available as of the date of this
Prospectus, Western Reserve anticipates its availability by the end of 1997, and
will notify Policyowners accordingly.
THE LAST PARAGRAPH ON PAGE 22 UNDER THE HEADING "PAYMENT AND ALLOCATION OF
PREMIUMS - ASSET REBALANCING PROGRAM" HAS BEEN CHANGED AS FOLLOWS:
Although the Asset Rebalancing Program is not available as of the date of
this Prospectus, Western Reserve anticipates its availability by the end of
1997, and will notify Policyowners accordingly.
THE FOLLOWING INFORMATION IS MODIFIED ON PAGE 26, UNDER THE HEADING "CHARGES AND
DEDUCTIONS - CHARGES AGAINST THE SERIES ACCOUNT" AS FOLLOWS:
Addition of new sub-heading after the fourth paragraph.
EXPENSES OF THE FUND
<PAGE>
Deletion of sub-heading "Investment Advisory Fee."
ADDITION OF A NEW PARAGRAPH BEFORE THE HEADING "GROUP OR SPONSORED ARRANGEMENTS"
AS FOLLOWS:
Effective January 1, 1997, the Fund has adopted a Plan of Distribution pursuant
to Rule 12b-1 under the 1940 Act ("Distribution Plan") and pursuant to the Plan,
has entered into a Distribution Agreement with InterSecurities, Inc. ("ISI"),
principal underwriter for the Fund.
Under the Distribution Plan, the Fund, on behalf of the Portfolios, is
authorized to pay to various service providers, as direct payment for expenses
incurred in connection with the distribution of a Portfolio's shares, amounts
equal to actual expenses associated with distributing a Portfolio's shares, up
to a maximum rate of 0.15% (fifteen one-hundredths of one percent) on an
annualized basis of the average daily net assets. This fee is measured and
accrued daily and paid monthly. ISI has determined that it will not seek payment
by the Fund of distribution expenses with respect to any Portfolio during the
fiscal year ending December 31, 1997. Prior to ISI's seeking reimbursement,
Policyowners will be notified in advance.
THE FIFTH PARAGRAPH ON PAGE 38 OF THE PROSPECTUS UNDER THE HEADING "APPENDIX A -
ILLUSTRATION OF BENEFITS" IS CHANGED AS FOLLOWS:
The amounts shown for the death benefits, Cash Values and Net Surrender
Values take into account (1) the daily charge for assuming mortality and expense
risks assessed against each Sub-Account which is equivalent to an annual charge
of 0.90% of the average net assets of the Sub-Accounts; (2) estimated daily
expenses equivalent to an effective average annual expense level of 0.87% of the
average daily net assets of the Portfolios of the Fund; and (3) all applicable
premium expense charges and Cash Value charges. The 0.87% average Portfolio
expense level assumes an equal allocation of amounts among the fifteen
Sub-Accounts and is based on an average 0.71% investment advisory fee and
estimated 1996 average normal operating expenses of 0.16% for each of the
Portfolios in operation during 1996. Calculation of the average annual expense
level utilized annualized actual 11-month unaudited expenses incurred during
1996 as adjusted for anticipated expense modifications incurring in 1997 for the
Money Market (0.46%), Bond (0.61%), Growth (0.85%), Short-to-Intermediate
Government (0.72%), Equity-Income (0.87%), Emerging Growth (0.88%), Global
(0.90%), Aggressive Growth (0.91%), Balanced (0.90%), Utility (0.91%), C.A.S.E.
Growth (0.94%), and Tactical Asset Allocation (0.86%). In addition, because the
Value Equity Portfolio was not in existence during the full year of 1996
(commencement of operations was May 1, 1996), and the U.S. Equity Portfolio and
International Equity Portfolio had not commenced operations as of December 31,
1996, the estimated average annual Portfolio expense level reflects estimated
expenses for these three Portfolios at 0.85%, 1.05%, and 1.30%, respectively,
for 1997. During 1996, Western Reserve had undertaken to pay Fund expenses for
each Portfolio to the extent normal operating expenses of a Portfolio exceeded a
stated percentage of the Portfolio's average daily net assets. Western Reserve
has also undertaken until April 30, 1997 to pay expenses to the extent normal
operating expenses of a Portfolio exceed a stated percentage of the Portfolio's
average daily net assets. Taking into account the assumed charges of 1.77%, the
gross annual investment return rates of 0%, 6% and 12% are equivalent to net
annual investment return rates of -1.77%, 4.23%, and 10.23%.
THE ATTACHED FINANCIALS SUPPLEMENT THE FINANCIAL STATEMENTS INCLUDED IN THE MAY
1, 1996 PROSPECTUS BOOKLET.
<PAGE>
WRL SERIES LIFE ACCOUNT
MONEY MARKET SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: SEPTEMBER 30, 1996
------------------
Investments at net asset value:
WRL Series Fund, Inc.:
Money Market Portfolio
(14,772,612.310 shares;
cost $ 14,772,612) ..................................... $14,772,612
Accrued transfers from (to) depositor - net ............... 38,350
-----------
Total assets ........................................... 14,810,962
-----------
LIABILITIES: ................................................ 0
-----------
Total net assets ....................................... $14,810,962
===========
EQUITY ACCOUNTS:
Policyowners' equity:
Money Market sub-account
(968,329.525481 units;
$15.295374 unit value) ................................. $14,810,962
-----------
Total equity ........................................... $14,810,962
===========
STATEMENT OF OPERATIONS
NINE MONTHS ENDED
INVESTMENT INCOME: SEPTEMBER 30, 1996
------------------
Dividend income ....................................... $426,457
Capital gain distributions ............................ 0
426,457
--------
EXPENSES:
Mortality and expense risk charges .................... 76,494
--------
Net investment income (loss) ........................ 349,963
--------
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 ............... $349,963
========
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
NINE MONTHS ENDED YEAR ENDED
OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995
------------------ -----------------
<S> <C> <C>
Net investment income (loss) ............... $ 349,963 $ 397,410
Net gain (loss) on investments ............. 0 0
----------- -----------
Net increase (decrease) in equity accounts
resulting from operations ................. 349,963 397,410
----------- -----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ........ 6,152,998 3,139,280
----------- -----------
Less cost of units redeemed:
Administrative charges .................... 1,753,507 1,356,484
Policy loans .............................. 179,641 219,767
Surrender benefits ........................ 499,065 899,893
Death benefits ............................ 18,410 7,670
----------- -----------
2,450,623 2,483,814
----------- -----------
Increase (decrease) in equity accounts from
capital unit transactions ............... 3,702,375 655,466
----------- -----------
Net increase (decrease) in equity accounts 4,052,338 1,052,876
EQUITY ACCOUNTS:
Beginning of period ........................ 10,758,624 9,705,748
----------- -----------
End of period .............................. $14,810,962 $10,758,624
=========== ===========
</TABLE>
The notes to the financial statements are an integral part of this report.
- -------------------------------------------------------------------------------
1
<PAGE>
WRL SERIES LIFE ACCOUNT
MONEY MARKET SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
SEPT. 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) ............ .47 .64 .35 .21 .30 .55
Net realized and unrealized
gain (loss) on investments ............ .00 .00 .00 .00 .00 .00
-------- -------- -------- -------- -------- --------
Total income (loss) from operations ... .47 .64 .35 .21 .30 .55
-------- -------- -------- -------- -------- --------
Accumulation unit value, end of period ..... $ 15.30 $ 14.83 $ 14.19 $ 13.84 $ 13.63 $ 13.33
======== ======== ======== ======== ======== ========
Total return ............................... 3.13% 4.49% 2.58% 1.52% 2.24% 4.34%
Ratios and supplemental data:
Net assets at end of period (in thousands) $ 14,811 $ 10,759 $ 9,706 $ 4,985 $ 4,619 $ 4,042
Ratio of net investment income (loss) to
average net assets** .................... 4.09% 4.37% 2.66% 1.51% 2.12% 4.28%
<FN>
- ------------
* The above table illustrates the change for a unit outstanding computed
using average units outstanding through each period.
** This ratio is annualized for the period ended September 30, 1996.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
2
<PAGE>
WRL SERIES LIFE ACCOUNT
BOND SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: SEPTEMBER 30, 1996
------------------
Investments at net asset value:
WRL Series Fund, Inc.:
Bond Portfolio
(1,029,776.221 shares;
cost $11,356,557) ................................. $ 11,044,802
Accrued transfers from (to) depositor - net .......... (8,481)
------------
Total assets ...................................... 11,036,321
------------
LIABILITIES: ........................................... 0
------------
Total net assets .................................. $ 11,036,321
============
EQUITY ACCOUNTS:
Policyowners' equity:
Bond sub-account
(580,868.722716 units;
$18.999682 unit value) ............................ $ 11,036,321
------------
Total equity ...................................... $ 11,036,321
============
STATEMENT OF OPERATIONS
NINE MONTHS ENDED
INVESTMENT INCOME: SEPTEMBER 30, 1996
------------------
Dividend income ......................................... $ 288,871
Capital gain distributions .............................. 0
---------
288,871
EXPENSES:
Mortality and expense risk charges ...................... 69,846
---------
Net investment income (loss) .......................... 219,025
---------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from
securities transactions ............................... (114,753)
Unrealized appreciation (depreciation) .................. (464,520)
---------
Net gain (loss) on investments ........................ (579,273)
---------
Net increase (decrease) in net assets
resulting from operations .......................... $(360,248)
=========
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
NINE MONTHS ENDED YEAR ENDED
OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995
------------------ -----------------
<S> <C> <C>
Net investment income (loss)................................ $ 219,025 $ 459,977
Net gain (loss) on investments.............................. (579,273) 1,080,157
----------- ----------
Net increase (decrease) in equity accounts
resulting from operations.................................. (360,248) 1,540,134
----------- ----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed):........................ 2,715,612 3,749,029
----------- ----------
Less cost of units redeemed:
Administrative charges..................................... 953,693 916,494
Policy loans............................................... 148,082 197,829
Surrender benefits......................................... 260,483 357,384
Death benefits............................................. 22,917 10,202
----------- ----------
1,385,175 1,481,909
----------- ----------
Increase (decrease) in equity accounts from
capital unit transactions................................ 1,330,437 2,267,120
----------- ----------
Net increase (decrease) in equity accounts................. 970,189 3,807,254
EQUITY ACCOUNTS:
Beginning of period......................................... 10,066,132 6,258,878
----------- -----------
End of period............................................... $11,036,321 $10,066,132
=========== ===========
</TABLE>
The notes to the financial statements are an integral part of this report.
- -------------------------------------------------------------------------------
3
<PAGE>
WRL SERIES LIFE ACCOUNT
BOND SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
SEPT. 30 DECEMBER 31
-------- ---------------------------------------------------
1996 1995 1994 1993 1992 1991
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 19.67 $ 16.14 $ 17.50 $ 15.57 $ 14.68 $ 12.48
Income from operations:
Net investment income (loss) ............ .40 1.05 .89 2.11 1.00 .48
Net realized and unrealized
gain (loss) on investments ............ (1.07) 2.48 (2.25) (.18) (.11) 1.72
-------- -------- -------- -------- -------- --------
Total income (loss) from operations ... (.67) 3.53 (1.36) 1.93 .89 2.20
--------- -------- -------- -------- -------- --------
Accumulation unit value, end of period ..... $ 19.00 $ 19.67 $ 16.14 $ 17.50 $ 15.57 $ 14.68
======== ======== ======== ======== ======== ========
Total return ............................... (3.43)% 21.89% (7.77)% 12.40% 6.08% 17.63%
Ratios and supplemental data:
Net assets at end of period (in thousands) $ 11,036 $ 10,066 $ 6,259 $ 6,985 $ 4,558 $ 3,055
Ratio of net investment income (loss) to
average net assets** .................... 2.86% 5.80% 5.57% 12.92% 6.6 3.59%
<FN>
- ----------
* The above table illustrates the change for a unit outstanding computed
using average units outstanding through each period.
** This ratio is annualized for the period ended September 30, 1996.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
4
<PAGE>
WRL SERIES LIFE ACCOUNT
GROWTH SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: SEPTEMBER 30, 1996
------------------
Investments at net asset value:
WRL Series Fund, Inc.:
Growth Portfolio
(9,051,069.555 shares;
cost $ 233,268,655) ................................. $ 333,851,051
Accrued transfers from (to) depositor - net ............ (277,798)
-------------
Total assets ........................................ 333,573,253
LIABILITIES: ............................................. 0
-------------
Total net assets .................................... $ 333,573,253
=============
EQUITY ACCOUNTS:
Policyowners' equity:
Growth sub-account
(6,908,195.647892 units;
$ 48.286596 unit value) ............................. $ 333,573,253
-------------
Total equity ........................................ $ 333,573,253
=============
STATEMENT OF OPERATIONS
NINE MONTHS ENDED
INVESTMENT INCOME: SEPTEMBER 30, 1996
------------------
Dividend income ...................................... $ 860,787
Capital gain distributions ........................... 1,077,884
------------
1,938,671
EXPENSES:
Mortality and expense risk charges ................... 1,997,056
------------
Net investment income (loss) ....................... (58,385)
------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from
securities transactions ............................ 4,232,941
Change in unrealized appreciation
(depreciation) ....................................... 40,880,353
------------
Net gain (loss) on investments ....................... 45,113,294
------------
Net increase (decrease) in equity accounts
resulting from operations ......................... $ 45,054,909
============
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
NINE MONTHS ENDED YEAR ENDED
OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995
------------------ -----------------
<S> <C> <C>
Net investment income (loss)................................... $ (58,385) $ 23,250,380
Net gain (loss) on investments................................. 45,113,294 54,801,782
------------ ------------
Net increase (decrease) in equity accounts
resulting from operations.................................... 45,054,909 78,052,162
------------ ------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)............................ 62,530,238 61,850,933
------------ ------------
Less cost of units redeemed:
Administrative charges........................................ 21,253,460 23,714,204
Policy loans.................................................. 6,128,299 5,518,596
Surrender benefits............................................ 8,699,115 8,982,170
Death benefits................................................ 398,125 711,078
------------ ------------
36,478,999 38,926,048
------------ ------------
Increase (decrease) in equity accounts from
capital unit transactions................................... 26,051,239 22,924,885
------------ ------------
Net increase (decrease) in equity accounts.................... 71,106,148 100,977,047
EQUITY ACCOUNTS:
Beginning of period............................................ 262,467,105 161,490,058
------------ ------------
End of period.................................................. $333,573,253 $262,467,105
============ ============
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
5
<PAGE>
WRL SERIES LIFE ACCOUNT
GROWTH SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
SEPT. 30 DECEMBER 31
-------- --------------------------------------------------------
1996 1995 1994 1993 1992 1991
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 41.47 $ 28.44 $ 31.30 $ 30.37 $ 29.95 $ 18.91
Income from operations:
Net investment income (loss) ............ (.01) 3.89 .04 .46 1.09 1.72
Net realized and unrealized
gain (loss) on investments ............ 6.83 9.14 (2.90) .47 (.67) 9.32
-------- -------- -------- -------- -------- --------
Total income (loss) from operations ... 6.82 13.03 (2.86) .93 .42 11.04
-------- -------- -------- -------- -------- --------
Accumulation unit value, end of period ..... $ 48.29 $ 41.47 $ 28.44 $ 31.30 $ 30.37 $ 29.95
======== ======== ======== ======== ======== ========
Total return ............................... 16.44% 45.81% (9.13)% 3.06% 1.41% 58.37%
Ratios and supplemental data:
Net assets at end of period (in thousands) $333,573 $262,467 $161,490 $169,757 $146,053 $111,375
Ratio of net investment income (loss) to
average net assets** .................... (.03)% 11.05% .16% 1.56% 3.84% 7.14%
<FN>
- ------------
* The above table illustrates the change for a unit outstanding computed
using average units outstanding through each period.
** This ratio is annualized for the period ended September 30, 1996.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
6
<PAGE>
WRL SERIES LIFE ACCOUNT
SHORT-TO-INTERMEDIATE GOVERNMENT SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: SEPTEMBER 30, 1996
------------------
Investments at net asset value:
WRL Series Fund, Inc.:
Short-to-Intermediate Government Portfolio
(144,126.953 shares;
cost $ 1,484,619) ................................... $ 1,497,493
Accrued transfers from (to) depositor - net ............ (1,871)
-----------
Total assets ........................................ 1,495,622
LIABILITIES: ............................................. 0
-----------
Total net assets .................................... $ 1,495,622
===========
EQUITY ACCOUNTS:
Policyowners' equity:
Short-to-Intermediate Government sub-account
(128,515.024738 units;
$11.637719 unit value) .............................. $ 1,495,622
-----------
Total equity ........................................ $ 1,495,622
===========
STATEMENT OF OPERATIONS
NINE MONTHS ENDED
INVESTMENT INCOME: SEPTEMBER 30,1996
-----------------
Dividend income .......................................... $ 23,677
Capital gain distributions ............................... 0
--------
23,677
EXPENSES:
Mortality and expense risk charges ....................... 10,115
--------
Net investment income (loss) ........................... 13,562
--------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from
securities transactions ................................ 22,518
Change in unrealized appreciation
(depreciation) .......................................... (25,656)
--------
Net gain (loss) on investments ......................... (3,139)
--------
Net increase (decrease) in net assets
resulting from operations ............................. $ 10,423
========
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
NINE MONTHS ENDED YEAR ENDED
OPERATIONS: SEPTEMBER 30,1996 DECEMBER 31, 1995
- ----------- ----------------- -----------------
<S> <C> <C>
Net investment income (loss)................................... $ 13,562 $ 62,086
Net gain (loss) on investments................................. (3,139) 68,387
---------- ----------
Net increase (decrease) in equity accounts
resulting from operations..................................... 10,423 130,473
---------- ----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)............................ 144,541 679,242
---------- ----------
Less cost of units redeemed:
Administrative charges........................................ 130,446 141,954
Policy loans.................................................. 27,903 52,521
Surrender benefits............................................ 18,978 41,967
Death benefits................................................ 0 144
---------- ----------
177,327 236,586
---------- ----------
Increase (decrease) in equity accounts from
capital unit transactions................................... (32,786) 442,656
---------- ----------
Net increase (decrease) in equity accounts.................... (22,363) 573,129
EQUITY ACCOUNTS:
Beginning of period............................................ 1,517,985 944,856
---------- ----------
End of period.................................................. $1,495,622 $1,517,985
========== ==========
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
7
<PAGE>
WRL SERIES LIFE ACCOUNT
SHORT-TO-INTERMEDIATE GOVERNMENT SUB-ACCOUNT
(UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
SEPT. 30 DECEMBER 31
-------- --------------------------------------------
1996 1995 1994 1993 1992\dagger\
-------- ------- -------- -------- -------
<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) ............ .10 .61 .40 .14 .01
Net realized and unrealized
gain (loss) on investments ............ (.01) .67 (.53) .22 .03
-------- ------- -------- -------- -------
Total income (loss) from operations ... .09 1.28 (.13) .36 .04
-------- ------- -------- --------- -------
Accumulation unit value, end of period ..... $ 11.64 $ 11.55 $ 10.27 $ 10.40 $ 10.04
======== ======== ======== ======== ========
Total return ............................... .73% 12.53% (1.32)% 3.64% .38%
Ratios and supplemental data:
Net assets at end of period (in thousands) $ 1,496 $ 1,518 $ 945 $ 1,408 $ 803
Ratio of net investment income (loss) to
average net assets** .................... 1.22% 5.53% 4.06% 1.39% .16%
</TABLE>
* The above table illustrates the change for a unit outstanding computed
using average units outstanding through each period.
** This ratio is annualized for the period ended September 30, 1996.
\dagger\ 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.
- -------------------------------------------------------------------------------
8
<PAGE>
WRL SERIES LIFE ACCOUNT
GLOBAL SUB-ACCOUNT
(UNAUDITED)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: SEPTEMBER 30, 1996
------------------
Investments at net asset value:
WRL Series Fund, Inc.:
Global Portfolio (3,830,440.472 shares;
cost $ 59,223,121) .................................. $72,234,094
Accrued transfers from (to) depositor - net ............ 32,463
-----------
Total assets ........................................ 72,266,557
-----------
LIABILITIES: ............................................. 0
-----------
Total net assets .................................... $72,266,557
===========
EQUITY ACCOUNTS:
Policyowners' equity:
Global sub-account (4,974,425.092964 units;
$ 14.527620 unit value) ............................. $72,266,557
-----------
Total equity ........................................ $72,266,557
===========
STATEMENT OF OPERATIONS
NINE MONTHS ENDED
INVESTMENT INCOME: SEPTEMBER 30,1996
-----------------
Dividend income ......................................... $ 354,841
Capital gain distributions .............................. 114,391
----------
469,232
==========
EXPENSES:
Mortality and expense risk charges ...................... 368,006
----------
Net investment income (loss) .......................... 101,226
----------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from
securities transactions ............................... 282,560
Unrealized appreciation (depreciation) .................. 9,409,784
----------
Net gain (loss) on investments ........................ 9,692,344
----------
Net increase (decrease) in net assets
resulting from operations .......................... $9,793,570
==========
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
NINE MONTHS ENDED YEAR ENDED
OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995
------------------ -----------------
<S> <C> <C>
Net investment income (loss) ............... $ 101,226 $ 1,187,745
Net gain (loss) on investments ............. 9,692,344 4,626,003
------------ -----------
Net increase (decrease) in equity accounts
resulting from operations ................. 9,793,570 5,813,748
------------ -----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ........ 32,319,930 15,012,786
------------ -----------
Less cost of units redeemed:
Administrative charges .................... 4,391,586 4,017,781
Policy loans .............................. 887,801 666,264
Surrender benefits ........................ 1,309,265 721,584
Death benefits ............................ 38,835 44,234
------------ -----------
6,627,487 5,449,863
------------ -----------
Increase (decrease) in equity accounts from
capital unit transactions ............... 25,692,443 9,562,923
------------ -----------
Net increase (decrease) in equity accounts 35,486,013 15,376,671
Depositors' equity contribution (redemption) (268,153) 0
EQUITY ACCOUNTS:
Beginning of period ........................ 37,048,697 21,672,026
------------ -----------
End of period .............................. $ 72,266,557 $37,048,697
============ ===========
</TABLE>
The notes to the financial statements are an integral part of this report.
- -------------------------------------------------------------------------------
9
<PAGE>
<TABLE>
<CAPTION>
WRL SERIES LIFE ACCOUNT
GLOBAL SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
SEPT. 30 DECEMBER 31
--------- -------------------------
1996 1995 1994\dagger\
--------- ---------- ----------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 11.95 $ 9.80 $ 10.00
Income from operations:
Net investment income (loss) ............ .03 .45 .71
Net realized and unrealized
gain (loss) on investments ............ 2.55 1.70 (.91)
--------- ---------- ----------
Total income (loss) from operations ... 2.58 2.15 (.20)
--------- ---------- ----------
Accumulation unit value, end of period ..... $ 14.53 $ 11.95 $ 9.80
========= ========== ==========
Total return ............................... 21.57% 21.96% (2.02)%
Ratios and supplemental data:
Net assets at end of period (in thousands) $ 72,267 $ 37,049 $ 21,672
Ratio of net investment income (loss) to
average net assets** .................... .29% 4.25% 7.39%
<FN>
- ------------
* The above table illustrates the change for a unit outstanding computed
using average units outstanding through each period.
** This ratio is annualized for the period ended September 30, 1996.
\dagger\ The inception date of this sub-account was March 1, 1994. The total
return is not annualized.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
10
<PAGE>
WRL SERIES LIFE ACCOUNT
EQUITY-INCOME SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: SEPTEMBER 30, 1996
------------------
Investments at net asset value:
WRL Series Fund, Inc.:
Equity-Income Portfolio (3,657,160.333 shares;
cost $ 43,154,636) .................................. $ 50,638,542
Accrued transfers from (to) depositor - net ............ (53,412)
------------
Total assets ........................................ 50,585,130
LIABILITIES: ............................................. 0
------------
Total net assets .................................... $ 50,585,130
============
EQUITY ACCOUNTS:
Policyowners' equity:
Equity-Income sub-account (3,414,735.720554 units;
$ 14.813776 unit value) ............................. $ 50,585,130
------------
Total equity ........................................ $ 50,585,130
============
STATEMENT OF OPERATIONS
NINE MONTHS ENDED
INVESTMENT INCOME: SEPTEMBER 30, 1996
------------------
Dividend income ......................................... $ 312,575
Capital gain distributions .............................. 84,620
----------
397,195
EXPENSES:
Mortality and expense risk charges ...................... 302,955
----------
Net investment income (loss) .......................... 94,240
----------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from
securities transactions ............................... 228,689
Unrealized appreciation (depreciation) .................. 3,032,915
----------
Net gain (loss) on investments ........................ 3,261,604
----------
Net increase (decrease) in net assets
resulting from operations .......................... $3,355,844
==========
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
NINE MONTHS ENDED YEAR ENDED
OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995
------------------ -----------------
<S> <C> <C>
Net investment income (loss) ............... $ 94,240 $ 1,756,089
Net gain (loss) on investments ............. 3,261,604 4,992,475
----------- -----------
Net increase (decrease) in equity accounts
resulting from operations ................. 3,355,844 6,748,564
----------- -----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ........ 12,500,597 14,236,727
----------- -----------
Less cost of units redeemed:
Administrative charges .................... 3,263,409 3,380,854
Policy loans .............................. 716,938 657,750
Surrender benefits ........................ 853,076 918,863
Death benefits ............................ 86,163 28,153
----------- -----------
4,919,586 4,985,620
----------- ----------
Increase (decrease) in equity accounts from
capital unit transactions ............... 7,581,011 9,251,107
----------- -----------
Net increase (decrease) in equity accounts 10,936,855 15,999,671
EQUITY ACCOUNTS:
Beginning of period ........................ 39,648,275 23,648,604
----------- -----------
End of period .............................. $50,585,130 $39,648,275
=========== ===========
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
11
<PAGE>
WRL SERIES LIFE ACCOUNT
EQUITY-INCOME SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
SEPT. 30 DECEMBER 31
-------- --------------------------------
1996 1995 1994 1993\dagger\
-------- ------- ------- -------
<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) ............ .03 .68 .18 .19
Net realized and unrealized
gain (loss) on investments ............ 1.04 1.94 (.34) 1.09
-------- ------- ------- -------
Total income (loss) from operations ... 1.07 2.62 (.16) 1.28
-------- ------- ------- -------
Accumulation unit value, end of period ..... $ 14.81 $ 13.74 $ 11.12 $ 11.28
======== ======= ======= =======
Total return ............................... 7.82% 23.55% (1.42)% 12.81%
Ratios and supplemental data:
Net assets at end of period (in thousands) $50,585 $39,648 $23,649 $13,343
Ratio of net investment income (loss) to
average net assets** .................... .28% 5.47% 1.93% 1.89%
<FN>
- --------------
* The above table illustrates the change for a unit outstanding computed
using average units outstanding through each period.
** This ratio is annualized for the period ended September 30, 1996.
\dagger\ The inception date of this sub-account was March 1, 1993. The total
return is not annualized.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
- ------------------------------------------------------------------------------
12
<PAGE>
WRL SERIES LIFE ACCOUNT
AGGRESSIVE GROWTH SUB-ACCOUNT
(UNAUDITED)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: SEPTEMBER 30, 1996
------------------
Aggressive Investments at net asset value:
WRL Series Fund, Inc.:
Aggressive Growth Portfolio (3,454,037.947 shares;
cost $ 45,039,041) ................................... $ 48,078,822
Accrued transfers from (to) depositor - net ............. (46,950)
------------
Total assets ......................................... 48,031,872
------------
LIABILITIES: .............................................. 0
------------
Total net assets ..................................... $ 48,031,872
============
EQUITY ACCOUNTS:
Policyowners' equity:
Aggressive Growth sub-account (3,364,595.750104 units;
$14.275674 unit value) ............................... $ 48,031,872
------------
Total equity ......................................... $ 48,031,872
============
STATEMENT OF OPERATIONS
NINE MONTHS ENDED
INVESTMENT INCOME: SEPTEMBER 30, 1996
------------------
Dividend income ........................................ $ 614,817
Capital gain distributions ............................. 216,587
----------
831,404
EXPENSES:
Mortality and expense risk charges ..................... 278,502
----------
Net investment income (loss) ......................... 552,902
----------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from
securities transactions .............................. 1,954,191
Unrealized appreciation (depreciation) ................. 22,556
----------
Net gain (loss) on investments ....................... 1,976,747
----------
Net increase (decrease) in net assets
resulting from operations ......................... $2,529,649
==========
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
NINE MONTHS ENDED YEAR ENDED
OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995
------------------ -----------------
<S> <C> <C>
Net investment income (loss) ............... $ 552,902 $ 663,994
Net gain (loss) on investments ............. 1,976,747 4,424,350
----------- ------------
Net increase (decrease) in equity accounts
resulting from operations ................. 2,529,649 5,088,344
----------- ------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ........ 18,767,881 23,169,917
----------- ------------
Less cost of units redeemed:
Administrative charges .................... 4,483,421 2,568,298
Policy loans .............................. 609,118 627,821
Surrender benefits ........................ 1,070,651 712,307
Death benefits ............................ 6,437 80,922
----------- ------------
6,169,627 3,989,348
----------- ------------
Increase (decrease) in equity accounts from
capital unit transactions ............... 12,598,254 19,180,569
----------- ------------
Net increase (decrease) in equity accounts 15,127,903 24,268,913
Depositor's equity contribution (redemption) 0 (274,290)
EQUITY ACCOUNTS:
Beginning of period ........................ 32,903,969 8,909,346
----------- ------------
End of period .............................. $48,031,872 $ 32,903,969
=========== ============
</TABLE>
The notes to the financial statements are an integral part of this report.
- -------------------------------------------------------------------------------
13
<PAGE>
<TABLE>
<CAPTION>
WRL SERIES LIFE ACCOUNT
AGGRESSIVE GROWTH SUB-ACCOUNT
(UNAUDITED)
- -------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
SEPT. 30 DECEMBER 31
-------- ------------------
1996 1995 1994\dagger\
-------- ------- ------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 13.43 $ 9.82 $10.00
Income from operations:
Net investment income (loss) ............ .18 .37 (.06)
Net realized and unrealized
gain (loss) on investments ............ .67 3.24 (.12)
------- ------- ------
Total income (loss) from operations ... .85 3.61 (.18)
------- ------- ------
Accumulation unit value, end of period ..... $ 14.28 $ 13.43 $ 9.82
======= ======= ======
Total return ............................... 6.33% 36.79% (1.85)%
Ratios and supplemental data:
Net assets at end of period (in thousands) $48,032 $32,904 $8,909
Ratio of net investment income (loss) to
average net assets** .................... 1.81% 2.93% (.60)%
</TABLE>
* The above table illustrates the change for a unit outstanding computed
using average units outstanding through each period.
** This ratio is annualized for the period ended September 30, 1996
\dagger\ 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.
- -------------------------------------------------------------------------------
14
<PAGE>
WRL SERIES LIFE ACCOUNT
BALANCED SUB-ACCOUNT
(UNAUDITED)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: SEPTEMBER 30, 1996
------------------
Investments at net asset value:
WRL Series Fund, Inc.:
Balanced Portfolio (478,127.36 shares;
cost $ 4,853,852) .................................. $ 5,273,193
Accrued transfers from (to) depositor - net ........... (6,158)
Total assets ....................................... 5,267,035
LIABILITIES: ............................................ 0
-----------
Total net assets ................................... $ 5,267,035
===========
EQUITY ACCOUNTS:
Policyowners' equity:
Balanced sub-account (456,622.641047 units;
$ 11.534766 unit value) ............................ $ 5,267,035
-----------
Total equity ....................................... $ 5,267,035
===========
STATEMENT OF OPERATIONS
NINE MONTHS ENDED
INVESTMENT INCOME: SEPTEMBER 30, 1996
------------------
Dividend income .......................................... $ 31,381
Capital gain distributions ............................... 0
--------
31,381
EXPENSES:
Mortality and expense risk charges ....................... 31,297
--------
Net investment income (loss) ........................... 84
--------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from
securities transactions ................................ 67,906
Unrealized appreciation (depreciation) ................... 106,741
--------
Net gain (loss) on investments ......................... 174,647
--------
Net increase (decrease) in net assets
resulting from operations ........................... $174,731
========
WRL SERIES LIFE ACCOUNT
BALANCED SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
NINE MONTHS ENDED YEAR ENDED
OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995
------------------ -----------------
<S> <C> <C>
Net investment income (loss) ............... $ 84 $ 102,635
Net gain (loss) on investments ............. 174,647 401,549
----------- ----------
Net increase (decrease) in equity accounts
resulting from operations ................. 174,731 504,184
----------- ----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ........ 2,043,775 1,545,514
----------- ----------
Less cost of units redeemed:
Administrative charges .................... 404,262 327,290
Policy loans .............................. 55,007 29,025
Surrender benefits ........................ 63,488 27,726
Death benefits ............................ 3,933 14,881
----------- ----------
526,690 398,852
----------- ----------
Increase (decrease) in equity accounts from
capital unit transactions ............... 1,517,085 1,146,662
----------- ----------
Net increase (decrease) in equity accounts 1,691,816 1,650,846
Depositor's equity contribution (redemption) (220,175) 0
EQUITY ACCOUNTS:
Beginning of period ........................ 3,795,394 2,144,548
----------- ----------
End of period .............................. $ 5,267,035 $3,795,394
=========== ==========
</TABLE>
The notes to the financial statements are an integral part of this report.
- -------------------------------------------------------------------------------
15
<PAGE>
<TABLE>
<CAPTION>
WRL SERIES LIFE ACCOUNT
BALANCED SUB-ACCOUNT
(UNAUDITED)
- -------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
SEPT.30 DECEMBER 31
-------- --------------------
1996 1995 1994\dagger\
-------- -------- -------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 11.13 $ 9.37 $ 10.00
Income from operations:
Net investment income (loss) ............ .00 .37 .22
Net realized and unrealized
gain (loss) on investments ............ .40 1.39 (.85)
-------- -------- -------
Total income (loss) from operations ... .40 1.76 (.63)
-------- -------- -------
Accumulation unit value, end of period ..... $ 11.53 $ 11.13 $ 9.37
======== ======== =======
Total return ............................. 3.6 18.73% (6.29)%
Ratios and supplemental data:
Net assets at end of period (in thousands) $ 5,267 $ 3,795 $ 2,145
Ratio of net investment income (loss) to
average net assets** .................... .00% 3.59% 2.55%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding through each period.
** This ratio is annualized for the period ended September 30, 1996
\dagger\ 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.
- -------------------------------------------------------------------------------
16
<PAGE>
WRL SERIES LIFE ACCOUNT
EMERGING GROWTH SUB-ACCOUNT
(UNAUDITED)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: SEPTEMBER 30, 1996
------------------
Investments at net asset value:
WRL Series Fund, Inc.:
Emerging Growth Portfolio (5,215,027.007 shares;
cost $ 72,827,461) ................................... $104,681,427
Accrued transfers from (to) depositor - net ............. 54,104
------------
Total assets ......................................... 104,735,531
------------
LIABILITIES: .............................................. 0
------------
Total net assets ..................................... $104,735,531
============
EQUITY ACCOUNTS:
Policyowners' equity:
Emerging Growth sub-account (5,143,416.816593 units;
$ 20.363026 unit value) .............................. $104,735,531
------------
Total equity ......................................... $104,735,531
============
STATEMENT OF OPERATIONS
NINE MONTHS ENDED
INVESTMENT INCOME: SEPTEMBER 30, 1996
------------------
Dividend income ....................................... $ 3,998
Capital gain distributions ............................ 178,386
------------
182,384
EXPENSES:
Mortality and expense risk charges .................... 564,594
Net investment income (loss) ........................ (382,210)
------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from
securities transactions ............................. 858,061
Unrealized appreciation (depreciation) ................ 17,300,721
------------
Net gain (loss) on investments ...................... 18,158,782
------------
Net increase (decrease) in net assets
resulting from operations ........................ $ 17,776,572
============
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
NINE MONTHS ENDED YEAR ENDED
OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995
------------------ -----------------
<S> <C> <C>
Net investment income (loss) ............... $ (382,210) $ 2,356,904
Net gain (loss) on investments ............. 18,158,782 16,180,870
------------- -----------
Net increase (decrease) in equity accounts
resulting from operations ................. 17,776,572 18,537,774
------------- -----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ........ 28,842,554 21,556,186
------------- -----------
Less cost of units redeemed:
Administrative charges .................... 6,379,364 5,846,452
Policy loans .............................. 1,447,069 1,387,434
Surrender benefits ........................ 1,930,578 1,602,690
Death benefits ............................ 31,537 38,971
------------- -----------
9,788,548 8,875,547
Increase (decrease) in equity accounts from
capital unit transactions ............... 19,054,006 12,680,639
------------- -----------
Net increase (decrease) in equity accounts 36,830,578 31,218,413
EQUITY ACCOUNTS:
Beginning of period ........................ 67,904,953 36,686,540
------------- -----------
End of period .............................. $ 104,735,531 $67,904,953
============= ===========
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
17
<PAGE>
<TABLE>
<CAPTION>
WRL SERIES LIFE ACCOUNT
EMERGING GROWTH SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
SEPT. 30 DECEMBER 31
-------- --------------------------------
1996 1995 1994 1993\dagger\
-------- -------- -------- --------
<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 ..................... 3.88 4.53 (.93) 2.49
-------- -------- -------- -------
Total income (loss) from operations ............ 3.80 5.18 (1.02) 2.40
-------- -------- -------- -------
Accumulation unit value, end of period .............. $ 20.36 $ 16.56 $ 11.38 $ 12.40
======== ======== ======== =======
Total return ........................................ 22.98% 45.49% (8.18)% 23.96%
Ratios and supplemental data:
Net assets at end of period (in thousands) $104,736 $67,905 $ 36,687 $ 18,620
Ratio of net investment income (loss) to
average net assets** ............................. (.62)% 4.66% (.86)% (.77)%
</TABLE>
* The above table illustrates the change for a unit outstanding computed
using average units outstanding through each period.
** This ratio is annualized for the period ended September 30, 1996
\dagger\ 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.
- --------------------------------------------------------------------------------
18
<PAGE>
WRL SERIES LIFE ACCOUNT
UTILITY SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: SEPTEMBER 30, 1996
------------------
Investments at net asset value:
WRL Series Fund, Inc.:
Utility Portfolio (398,719,984 shares;
cost $ 4,334,954) .................................. $4,481,093
Accrued transfers from (to) depositor - net ........... 315
----------
Total assets ....................................... 4,481,408
----------
LIABILITIES: ............................................ 0
----------
Total net assets ................................... $4,481,408
==========
EQUITY ACCOUNTS:
Policyowners' equity:
Utility sub-account
(376,602.892904 units; $ 11.899559 unit value) ..... $4,481,408
----------
Total equity ....................................... $4,481,408
==========
STATEMENT OF OPERATIONS
NINE MONTHS ENDED
INVESTMENT INCOME: SEPTEMBER 30, 1996
------------------
Dividend income ..................................... $ 24,453
Capital gain distributions .......................... 1,948
---------
26,401
EXPENSES:
Mortality and expense risk charges .................. 24,289
---------
Net investment income (loss) ...................... 2,112
---------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from
securities transactions ........................... 108,198
Unrealized appreciation (depreciation) .............. (98,824)
---------
Net gain (loss) on investments .................... 9,374
---------
Net increase (decrease) in net assets
resulting from operations ...................... $ 11,486
=========
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
NINE MONTHS ENDED YEAR ENDED
OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995
------------------ -----------------
<S> <C> <C>
Net investment income (loss) ................ $ 2,112 $ 88,634
Net gain (loss) on investments .............. 9,374 336,528
----------- ----------
Net increase (decrease) in equity accounts
resulting from operations .................. 11,486 425,162
----------- ----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ......... 2,489,074 1,368,262
----------- ----------
Less cost of units redeemed:
Administrative charges ..................... 303,641 221,419
Policy loans ............................... 43,852 26,862
Surrender benefits ......................... 67,364 126,576
Death benefits ............................. 2,733 2,896
----------- ----------
417,590 377,753
Increase (decrease) in equity accounts from
capital unit transactions ................ 2,071,484 990,509
----------- ----------
Net increase (decrease) in equity accounts . 2,082,970 1,415,671
Depositors' equity contribution (redemption) (232,644) 0
EQUITY ACCOUNTS:
Beginning of period ......................... 2,631,082 1,215,411
----------- ----------
End of period ............................... $ 4,481,408 $2,631,082
=========== ==========
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
19
<PAGE>
WRL SERIES LIFE ACCOUNT
UTILITY SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
SEPT. 30 DECEMBER 31
-------- --------------------
1996 1995 1994\dagger\
-------- -------- -------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 11.77 $ 9.49 $ 10.00
Income from operations:
Net investment income (loss) ............ .01 .49 .29
Net realized and unrealized
gain (loss) on investments ............ .12 1.79 (.80)
------- ------- -------
Total income (loss) from operations ... .13 2.28 (.51)
------- ------- -------
Accumulation unit value, end of period ..... $ 11.90 $ 11.77 $ 9.49
======= ======== =======
Total return ............................... 1.06% 24.14% (5.15)%
Ratios and supplemental data:
Net assets at end of period (in thousands) $ 4,481 $ 2,631 $ 1,215
Ratio of net investment income (loss) to
average net assets ...................... .08% 4.57% 3.09%
<FN>
- ------------
* The above table illustrates the change for a unit outstanding computed
using average units outstanding through each period.
** This ratio is annualized for the period ended September 30, 1996
\dagger\ The inception date of this sub-account was March 1, 1994. The total
return is not annualized.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
20
<PAGE>
WRL SERIES LIFE ACCOUNT
TACTICAL ASSET ALLOCATION SUB-ACCOUNT
(UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: SEPTEMBER 30, 1996
------------------
Investments at net asset value:
WRL Series Fund, Inc.:
Tactical Asset Allocation Portfolio
(1,217,272.416 shares; cost $ 13,823,979) ........ $ 14,885,662
Accrued transfers from (to) depositor - net ......... (21,556)
------------
Total assets ..................................... 14,864,106
------------
LIABILITIES: .......................................... 0
------------
Total net assets ................................. $ 14,864,106
============
EQUITY ACCOUNTS:
Policyowners' equity:
Tactical Asset Allocation sub-account
(1,173,005.980111 units; $ 12.671808 unit value) . $ 14,864,106
------------
Total equity ..................................... $ 14,864,106
============
STATEMENT OF OPERATIONS
NINE MONTHS ENDED
INVESTMENT INCOME: SEPTEMBER 30, 1996
------------------
Dividend income ....................................... $ 99,486
Capital gain distributions ............................ 0
--------
99,486
EXPENSES:
Mortality and expense risk charges .................... 86,544
--------
Net investment income (loss) ........................ 12,942
--------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from
securities transactions ............................. 296,655
Unrealized appreciation (depreciation) ................ 445,964
--------
Net gain (loss) on investments ...................... 742,619
--------
Net increase (decrease) in net assets
resulting from operations ........................ $755,561
========
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
NINE MONTHS ENDED PERIOD ENDED
OPERATIONS: SEPTEMBER 30, 1996 DECEMBER 31, 1995*
----------------- ------------------
<S> <C> <C>
Net investment income (loss) ............................... $ 12,942 $ 314,171
Net gain (loss) on investments ............................. 742,619 733,874
----------- -----------
Net increase (decrease) in equity accounts
resulting from operations ................................. 755,561 1,048,045
----------- -----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ........................ 6,456,969 9,081,189
----------- -----------
Less cost of units redeemed:
Administrative charges ..................................... 767,103 434,848
Policy loans ............................................... 253,319 145,685
Surrender benefits ......................................... 773,024 70,630
Death benefits ............................................. 835 22,440
----------- -----------
1,794,281 673,603
Increase (decrease) in equity accounts from
capital unit transactions ................................. 4,662,688 8,407,586
----------- -----------
Net increase (decrease) in equity accounts ................. 5,418,249 9,455,631
Depositor's equity contribution (redemption) ............... 0 (9,774)
EQUITY ACCOUNTS:
Beginning of period ........................................ 9,445,857 0
----------- -----------
End of period .............................................. $14,864,106 $ 9,445,857
=========== ===========
*The inception date of this sub-account was January 3, 1995
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
21
<PAGE>
WRL SERIES LIFE ACCOUNT
TACTICAL ASSET ALLOCATION SUB-ACCOUNT
(UNAUDITED)
- -------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
SEPT. 30 DECEMBER 31
---------- -----------
1996 1995\dagger\
---------- ------------
Accumulation unit value, beginning of period $ 11.90 $ 10.00
Income from operations:
Net investment income (loss) ................. .01 .61
Net realized and unrealized
gain (loss) on investments ................. .76 1.29
---------- ---------
Total income (loss) from operations ........ .77 1.90
---------- ---------
Accumulation unit value, end of period .......... $ 12.67 $ 11.90
========== =========
Total return .................................... 6.46% 19.03%
Ratios and supplemental data:
Net assets at end of period (in thousands) .... $ 14,864 $ 9,446
Ratio of net investment income (loss) to
average net assets** ......................... .14% 5.47%
*The above table illustrates the change for a unit outstanding computed using
average units outstanding through each period.
** This ratio is annualized for the period ended September 30, 1996.
\dagger\ 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.
- -------------------------------------------------------------------------------
22
<PAGE>
WRL SERIES LIFE ACCOUNT
C.A.S.E. GROWTH SUB-ACCOUNT
(UNAUDITED)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: SEPTEMBER 30, 1996
------------------
Investments at net asset value:
WRL Series Fund, Inc.:
C.A.S.E. Growth Portfolio
(211,216.975 shares;
cost $ 2,608,808) .............................. $ 2,715,157
Accrued transfers from (to) depositor - net ....... (56,062)
-----------
Total assets ................................... 2,659,095
-----------
LIABILITIES: ........................................ 0
-----------
Total net assets ............................... $ 2,659,095
===========
EQUITY ACCOUNTS:
Policyowners' equity:
C.A.S.E. Growth sub-account
(258,931.483192 units;
$ 10.171290 unit value) ........................ $ 2,633,667
Depositor's equity:
C.A.S.E. Growth sub-account
(2,500.000000 units;
$ 10.171290 unit value ......................... 25,428
-----------
Total equity ................................... $ 2,659,095
===========
STATEMENT OF OPERATIONS
PERIOD ENDED
INVESTMENT INCOME: ....................................... SEPTEMBER 30, 1996*
-------------------
Dividend income ....................................... $ 739
Capital gain distributions ............................ 0
-----------
739
EXPENSES:
Mortality and expense risk charges ..................... 4,077
-----------
Net investment income (loss) ......................... (3,338)
-----------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from
securities transactions .............................. (2,194)
Unrealized appreciation (depreciation) ................. 106,349
-----------
Net gain (loss) on investments ....................... 104,155
-----------
Net increase (decrease) in net assets
resulting from operations ......................... $ 100,817
===========
<PAGE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
PERIOD ENDED
OPERATIONS: SEPTEMBER 30, 1996*
-------------------
Net investment income (loss)............................. $ (3,338)
Net gain (loss) on investments........................... 104,155
----------
Net increase (decrease) in equity accounts
resulting from operations............................... 100,817
----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)...................... 2,590,910
Less cost of units redeemed:
Administrative charges.................................. 47,280
Policy loans............................................ 0
Surrender benefits...................................... 10,352
Death benefits.......................................... 0
----------
57,632
Increase (decrease) in equity accounts from
capital unit transactions............................ 2,533,278
Net increase (decrease) in equity accounts............. 2,634,095
Depositor's equity contribution (redemption)............ 25,000
EQUITY ACCOUNTS:
Beginning of period..................................... 0
End of period........................................... $2,659,095
==========
*The inception date of this sub-account was May 1, 1996.
The notes of the financial statements are an integral part of this report.
- -------------------------------------------------------------------------------
23
<PAGE>
WRL SERIES LIFE ACCOUNT
C.A.S.E. GROWTH SUB-ACCOUNT
(UNAUDITED)
- -------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
SEPTEMBER 30
------------
1996\dagger\
------------
Accumulation unit value, beginning of period $ 10.00
Income from operations:
Net investment income (loss).......................... (.05)
Net realized and unrealized
gain (loss) on investments.......................... .22
-------
Total income (loss) from operations................. .17
-------
Accumulation unit value, end of period .................. $ 10.17
=======
Total return............................................. 1.71%
Ratios and supplemental data:
Net assets at end of period (in thousands) $ 2,659
Ratio of net investment income (loss)
to average net assets**............................... (1.67)%
*The above table illustrates the change for a unit outstanding computed using
average units outstanding through each period.
** This ratio is annualized for the period ended September 30, 1996.
\dagger\ 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.
- -------------------------------------------------------------------------------
24
<PAGE>
WRL SERIES LIFE ACCOUNT
VALUE EQUITY SUB-ACCOUNT
(UNAUDITED)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
ASSETS: SEPTEMBER 30, 1996
------------------
Investments at net asset value:
WRL Series Fund, Inc.:
Value Equity Portfolio
(503,729.939 shares;
cost $ 5,170,272).............................. $5,351,399
Accrued transfers from (to) depositor - net 31,656
----------
Total assets................................... 5,383,055
----------
LIABILITIES:........................................ 0
----------
Total net assets............................... $5,383,055
==========
EQUITY ACCOUNTS:
Policyowners' equity:
Value Equity sub-account
(488,616.296490 units;
$ 10.583725 unit value)........................ $5,171,381
Depositor's equity:
Value Equity sub-account
(20,000.000000 units;
$ 10.583725 unit value......................... 211,674
----------
Total equity................................... $5,383,055
==========
STATEMENT OF OPERATIONS
PERIOD ENDED
INVESTMENT INCOME: SEPTEMBER 30, 1996*
-------------------
Dividend income......................................... $ 0
Capital gain distributions.............................. 0
---------
0
EXPENSES:
Mortality and expense risk charges ....................... 5,878
---------
Net investment income (loss)............................ (5,878)
---------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from
securities transactions................................. 3,604
Unrealized appreciation (depreciation .................... 181,127
---------
Net gain (loss) on investments.......................... 184,731
---------
Net increase (decrease) in net assets
resulting from operations............................ $ 178,853
=========
<PAGE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
PERIOD ENDED
OPERATIONS: SEPTEMBER 30, 1996*
-------------------
Net investment income (loss)................................ $ (5,878)
Net gain (loss) on investments.............................. 184,731
---------
Net increase (decrease) in equity accounts
resulting from operations.................................. 178,853
---------
EQUITY TRANSACTIONS:
Proceeds from units sold (repurchased):
Net payments (redemptions)................................. 5,063,012
---------
Less cost of units redeemed:
Cost of insurance and administrative charges............... 38,783
Policy loans............................................... 0
Surrender benefits......................................... 20,027
Death benefits............................................. 0
---------
58,810
---------
Increase (decrease) in equity accounts from
capital unit transactions................................ 5,004,202
---------
Net increase (decrease) in equity accounts................. 5,183,055
Depositor's equity contribution (redemption)................ 200,000
EQUITY ACCOUNTS:
Beginning of period......................................... 0
End of period...............................................$5,383,055
==========
*The inception date of this sub-account was May 1, 1996
The notes to the financial statements are an integral part of this report.
- -------------------------------------------------------------------------------
25
<PAGE>
WRL SERIES LIFE ACCOUNT
VALUE EQUITY SUB-ACCOUNT
(UNAUDITED)
- -------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
SEPTEMBER 30
1996\daggered\
Accumulation unit value, beginning of period $ 10.00
Income from operations:
Net investment income (loss) (.15)
Net realized and unrealized
gain (loss) on investments .73
-------
Total income (loss) from operations .58
-------
Accumulation unit value, end of period $ 10.58
=======
Total return.................................................... 5.84%
Ratios and supplemental data:
Net assets at end of period (in thousands) 5,383
Ratio of net investment income to
average net assets**......................................... (3.64)%
*The above table illustrates the change for a unit outstanding computed using
average units outstanding through each period.
** This ratio is annualized for the period ended September 30, 1996.
\daggered\ The inception date of this sub-account was May 1 , 1996. The total
return is not annualized.
The notes to the financial stateemnts are an integral part of this report.
- -------------------------------------------------------------------------------
26
<PAGE>
WRL SERIES LIFE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
- -------------------------------------------------------------------------------
SEPTEMBER 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 the 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:
PORTFOLIO INVESTMENT MANAGER
- --------- ------------------
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 Asset
Management Inc.
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.
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 C.A.S.E.
Growth and Value Equity sub-accounts, which in turn invested in the respective
portfolios. The amount of the contribution and the units received are as
follows:
SUB-ACCOUNT CONTRIBUTION UNITS
C.A.S.E. Growth $ 25,000 2,500.000000
Value Equity 200,000 20,000.000000
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 the financial statements in accordance wth generally
accepted accounting principles requires management to make estimates and
assumptions that effect 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 September 30, 1996.
Investment transactions are accounted for on the trade date, using the Fund
NAV per share 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.
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.
- -------------------------------------------------------------------------------
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS
WRL SERIES LIFE ACCOUNT
(UNAUDITED)
- -------------------------------------------------------------------------------
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 semi-annually, 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 September 30, 1996 the equity accounts include net unrealized
appreciation (depreciation) on investments of:
SUB-ACCOUNT
-----------
Money Market.................$ n/a
Bond......................... (311,755)
Growth....................... 100,582,396
Short-to-Intermediate Government 12,874
Global....................... 13,010,973
Equity-Income................ 7,483,906
Emerging Growth.............. 31,853,966
Aggressive Growth............ 3,039,781
Balanced..................... 419,341
Utility...................... 146,139
Tactical Asset Allocation.... 1,061,683
C.A.S.E. Growth.............. 106,349
Value Equity................. 181,127
- -------------------------------------------------------------------------------
28
<PAGE>
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
BALANCE SHEET - STATUTORY BASIS
AS OF SEPTEMBER 30, 1996
(IN THOUSANDS) (UNAUDITED)
ASSETS
Bonds $ 397,320
Common stocks and mutual funds 610
Mortgage loans on real estate 6,079
Real estate 7,289
Policy loans 47,942
Cash and short-term investments (8,163)
Separate account assets 3,295,321
Other assets 17,235
----------
Total assets $3,763,633
==========
LIABILITIES AND CAPITAL AND SURPLUS
Policy reserves $ 299,797
Other policy liabilities 30,655
Amounts due or accrued 14,118
Separate account liabilities 3,290,269
Borrowed money 25,900
Asset valuation reserve 6,033
----------
Total liabilities 3,666,772
Total capital and surplus 96,861
----------
Total liabilities, capital, and surplus $3,763,633
==========
See note to financial statements
<PAGE>
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
STATEMENT OF OPERATIONS - STATUTORY BASIS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
(IN THOUSANDS) (UNAUDITED)
Premium income $750,143
Net investment income 27,905
Net realized capital gains (losses) 89
Other income 10,172
Benefit payments incurred (241,024)
Decrease in policy
and contract reserves 94,965
Net transfers to separate accounts (491,331)
Operating costs (143,580)
---------
Income before income taxes 7,339
Federal income taxes (6,002)
---------
Net income (loss) $ 1,337
========
See note to financial statements
<PAGE>
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
STATEMENT OF CHANGES IN CAPITAL AND SURPLUS-STATUTORY BASIS
(IN THOUSANDS) (UNAUDITED)
<TABLE>
<CAPTION>
ADDITIONAL TOTAL
COMMON PAID-IN UNASSIGNED CAPITAL AND
STOCK CAPITAL SURPLUS SURPLUS
------ --------- ---------- -----------
<S> <C> <C> <C> <C>
Balance at December 31, 1995 $1,500 $68,015 $28,424 $97,939
------ ------- ------- -------
Net income 1,337 1,337
Change in reserve valuation basis - - (2,246) (2,246)
Change in Unrealized gains (losses) - - 147 147
Change in non-admitted assets - - 96 96
Change in asset valuation reserves - - (444) (444)
Change in separate accounts surplus - - 32 32
------ ------- ------- -------
Balance at September 30, 1996 $1,500 $68,015 $27,346 $96,861
====== ======= ======= =======
See note to financial statements
</TABLE>
<PAGE>
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
STATEMENT OF CASH FLOWS - STATUTORY BASIS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
(IN THOUSANDS) (UNAUDITED)
Operations:
Cash from insurance operations $(126,122)
Investment income received 28,529
Federal income taxes (5,624)
----------
Cash provided (used) by operations (103,217)
Investment activities:
Proceeds from sale or maturity of
long-term invested assets 92,739
Cost of long-term investments acquired (32,327)
Other, net 10,243
----------
Cash provided (used) by
investment activities 70,655
Financing activities:
Increase (decrease) in borrowed money 25,900
Cash provided by (used in)
financing activities 25,900
Net increase (decrease) in cash
and short-term investments (6,662)
Cash and short-term investments:
Beginning of year (1,501)
----------
End of period $ (8,163)
==========
See note to financial statements
<PAGE>
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
NOTE TO FINANCIAL STATEMENTS - STATUTORY BASIS
AS OF SEPTEMBER 30, 1996 (UNAUDITED)
1. BASIS OF PRESENTATION
The accompanying unaudited statutory basis financial statements have been
prepared in accordance with statutory accounting principles for interim
financial information and the instructions to Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and notes required by
generally accepted accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the nine-month period ended September 30, 1996 are not
necessarily indicative of the results that may be expected for the year ending
December 31, 1996. For further information, refer to the accompanying statutory
basis financial statements and notes thereto for the year ended December 31,
1995.
<PAGE>
WRL SERIES LIFE ACCOUNT
WRL FREEDOM WEALTH PROTECTOR
PROSPECTUS DATED MAY 1, 1996
Incorporated by reference herein is the above-referenced Prospectus dated
May 1, 1996, as filed with Post-Effective Amendment No 7 to the Registration
Statement on Form S-6 of WRL Series Life Account, File No. 33-69138 (April 18,
1996)
<PAGE>
PART II.
OTHER INFORMATION
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned registrant hereby undertakes to file with
the Securities and Exchange Commission such supplementary and periodic
information, documents, and reports as may be prescribed by any rule or
regulation of the Commission heretofore or hereafter duly adopted pursuant to
authority conferred in that Section.
REPRESENTATION PURSUANT TO SECTION 26(E)(2)(A)
Western Reserve Life Assurance Co. of Ohio ("Western Reserve") hereby
represents that the fees and charges deducted under the Contracts, in the
aggregate, are reasonable in relation to the services rendered, the expenses
expected to be incurred, and the risks assumed by Western Reserve.
STATEMENT WITH RESPECT TO INDEMNIFICATION
Provisions exist under the Ohio General Corporation Law, the Second
Amended Articles of Incorporation of Western Reserve and the Amended Code of
Regulations of Western Reserve whereby Western Reserve may indemnify certain
persons against certain payments incurred by such persons. The following
excerpts contain the substance of these provisions.
OHIO GENERAL CORPORATION LAW
SECTION 1701.13 AUTHORITY OF CORPORATION.
(E)(1) A corporation may indemnify or agree to indemnify any person who
was or is a party or is threatened to be made a party, to any threatened,
pending, or completed action, suit, or proceeding, whether civil, criminal,
administrative, or investigative, other than an action by or in the right of the
corporation, by reason of the fact that he is or was a director, officer,
employee, or agent of the corporation, or is or was serving at the request of
the corporation as a director, trustee, officer, employee, or agent of another
corporation (including a subsidiary of this corporation), domestic or foreign,
nonprofit or for profit, partnership, joint venture, trust, or other enterprise,
against expenses, including attorneys' fees, judgments, fines, and amounts paid
in settlement actually and reasonably incurred by him in connection with such
action, suit, or proceeding if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
corporation, and with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful. The termination of any
action, suit, or proceeding by judgment, order, settlement, conviction, or upon
a plea of nolo contendre or its equivalent, shall not, of itself create a
presumption that the person did not act in good faith and in a manner which he
reasonably believed to be in or not opposed to the best interests of the
corporation, and with respect to any criminal action or proceeding, he had
reasonable cause to believe that his conduct was unlawful.
(2) A corporation may indemnify or agree to indemnify any person who was
or is a party, or is threatened to be made a party to any threatened, pending,
or completed action or suit by or in the right of the corporation to procure a
judgment in its favor by reason of the fact that he is or was a director,
officer, employee, or agent of the corporation, or is or was serving at the
request of the corporation as a director, trustee, officer, employee, or agent
of another corporation, domestic or foreign, nonprofit or for profit,
partnership, joint venture, trust, or other enterprise, against expenses,
including attorneys' fees, actually and reasonably incurred by him in connection
with the defense or
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<PAGE>
settlement of such action or suit if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
corporation, except that no indemnification shall be made in respect of any of
the following:
(a) Any claim, issue, or matter as to which such person shall have been
adjudged to be liable for negligence or misconduct in the performance of his
duty to the corporation unless, and only to the extent that the court of common
pleas, or the court in which such action or suit was brought determines upon
application that, despite the adjudication of liability, but in view of all the
circumstances of the case, such person is fairly and reasonably entitled to
indemnity for such expenses as the court of common pleas or such other court
shall deem proper;
(b) Any action or suit in which the only liability asserted against a
director is pursuant to section 1701.95 of the Revised Code.
(3) To the extent that a director, trustee, officer, employee, or agent has
been successful on the merits or otherwise in defense of any action, suit, or
proceeding referred to in divisions (E)(1) and (2) of this section, or in
defense of any claim, issue, or matter therein, he shall be indemnified against
expenses, including attorneys' fees, actually and reasonably incurred by him in
connection therewith.
(4) Any indemnification under divisions (E)(1) and (2) of this section,
unless ordered by a court, shall be made by the corporation only as authorized
in the specific case upon a determination that indemnification of the director,
trustee, officer, employee, or agent is proper in the circumstances because he
has met the applicable standard of conduct set forth in divisions (E)(1) and (2)
of this section. Such determination shall be made as follows:
(a) By a majority vote of a quorum consisting of directors of the
indemnifying corporation who were not and are not parties to or threatened with
any such action, suit, or proceeding;
(b) If the quorum described in division (E)(4)(a) of this section is
not obtainable or if a majority vote of a quorum of disinterested directors so
directs, in a written opinion by independent legal counsel other than an
attorney, or a firm having associated with it an attorney, who has been retained
by or who has performed services for the corporation, or any person to be
indemnified within the past five years;
(c) By the shareholders;
(d) By the court of common pleas or the court in which such action,
suit, or proceeding was brought.
Any determination made by the disinterested directors under division
(E)(4)(a) or by independent legal counsel under division (E)(4)(b) of this
section shall be promptly communicated to the person who threatened or brought
the action or suit by or in the right of the corporation under division (E)(2)
of this section, and within ten days after receipt of such notification, such
person shall have the right to petition the court of common pleas or the court
in which such action or suit was brought to review the reasonableness of such
determination.
(5)(a) Unless at the time of a director's act or omission that is the
subject of an action, suit or proceeding referred to in divisions (E)(1) and (2)
of this section, the articles or the regulations of a corporation state by
specific reference to this division that the provisions of this division do not
apply to the corporation and unless the only liability asserted against a
director in an action, suit, or proceeding referred to in divisions (E)(1) and
(2) of this section is pursuant to section 1701.95 of the Revised Code,
expenses, including attorney's fees, incurred by a director in defending the
action, suit, or proceeding shall be paid by the corporation as they are
incurred, in advance of the final
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<PAGE>
disposition of the action, suit, or proceeding upon receipt of an undertaking by
or on behalf of the director in which he agrees to do both of the following:
(i) Repay such amount if it is proved by clear and convincing
evidence in a court of competent jurisdiction that his action or failure to act
involved an act or omission undertaken with deliberate intent to cause injury to
the corporation or undertaken with reckless disregard for the best interests of
the corporation;
(ii) Reasonably cooperate with the corporation concerning the
action, suit, or proceeding.
(b) Expenses, including attorneys' fees incurred by a director,
trustee, officer, employee, or agent in defending any action, suit, or
proceeding referred to in divisions (E)(1) and (2) of this section, may be paid
by the corporation as they are incurred, in advance of the final disposition of
the action, suit, or proceeding as authorized by the directors in the specific
case upon receipt of an undertaking by or on behalf of the director, trustee,
officer, employee, or agent to repay such amount, if it ultimately is determined
that he is entitled to be indemnified by the corporation.
(6) The indemnification authorized by this section shall not be exclusive
of, and shall be in addition to, any other rights granted to those seeking
indemnification under the articles or the regulations or any agreement, vote of
shareholders or disinterested directors, or otherwise, both as to action in his
official capacity and as to action in another capacity while holding such
office, and shall continue as to a person who has ceased to be a director,
trustee, officer, employee, or agent and shall inure to the benefit of the
heirs, executors, and administrators of such a person.
(7) A corporation may purchase and maintain insurance or furnish similar
protection, including but not limited to trust funds, letters of credit, or
self-insurance on behalf of or for any person who is or was a director, officer,
employee, or agent of the corporation, or is or was serving at the request of
the corporation as a director, trustee, officer, employee, or agent of another
corporation, domestic or foreign, nonprofit or for profit, partnership, joint
venture, trust, or other enterprise against any liability asserted against him
and incurred by him in any such capacity, or arising out of his status as such,
whether or not the corporation would have the power to indemnify him against
such liability under this section. Insurance may be purchased from or maintained
with a person in which the corporation has a financial interest.
(8) The authority of a corporation to indemnify persons pursuant to
divisions (E)(1) and (2) of this section does not limit the payment of expenses
as they are incurred, indemnification, insurance, or other protection that may
be provided pursuant to divisions (E)(5), (6), and (7) of this section.
Divisions (E)(1) and (2) of this section do not create any obligation to repay
or return payments made by the corporation pursuant to divisions (E)(5), (6), or
(7).
(9) As used in this division, references to "corporation" include all
constituent corporations in a consolidation or merger and the new or surviving
corporation, so that any person who is or was a director, officer, employee, or
agent of such a constituent corporation, or is or was serving at the request of
such constituent corporation as a director, trustee, officer, employee or agent
of another corporation, domestic or foreign, nonprofit or for profit,
partnership, joint venture, trust, or other enterprise, shall stand in the same
position under this section with respect to the new or surviving corporation as
he would if he had served the new or surviving corporation in the same capacity.
SECOND AMENDED ARTICLES OF INCORPORATION OF WESTERN RESERVE
ARTICLE EIGHTH
EIGHTH: (1) The corporation may indemnify or agree to indemnify any person
who was or is a party or is threatened to be made a party, to any threatened,
pending, or completed action, suit, or
II-3
<PAGE>
proceeding, whether civil, criminal, administrative, or investigative, other
than an action by or in the right of the corporation, by reason of the fact that
he is or was a director, officer, employee, or agent of the corporation, or is
or was serving at the request of the corporation as a director, trustee,
officer, employee, or agent of another corporation (including a subsidiary of
this corporation), domestic or foreign, nonprofit or for profit, partnership,
joint venture, trust, or other enterprise, against expenses, including
attorneys' fees, judgments, fines, and amounts paid in settlement actually and
reasonably incurred by him in connection with such action, suit, or proceeding
if he acted in good faith and in a manner he reasonably believed to be in or not
opposed to the best interests of the corporation, and with respect to any
criminal action or proceeding, had no reasonable cause to believe his conduct
was unlawful. The termination of any action, suit, or proceeding by judgment,
order, settlement, conviction, or upon a plea of nolo contendre or its
equivalent, shall not, of itself create a presumption that the person did not
act in good faith and in a manner which he reasonably believed to be in or not
opposed to the best interests of the corporation, and with respect to any
criminal action or proceeding, he had reasonable cause to believe that his
conduct was unlawful.
(2) The corporation may indemnify or agree to indemnify any person who was
or is a party, or is threatened to be made a party to any threatened, pending,
or completed action or suit by or in the right of the corporation to procure a
judgment in its favor by reason of the fact that he is or was a director,
officer, employee, or agent of the corporation, or is or was serving at the
request of the corporation as a director, trustee, officer, employee, or agent
of another corporation (including a subsidiary of this corporation), domestic or
foreign, nonprofit or for profit, partnership, joint venture, trust, or other
enterprise against expenses, including attorneys' fees, actually and reasonably
incurred by him in connection with the defense or settlement of such action or
suit if he acted in good faith and in a manner he reasonably believed to be in
or not opposed to the best interests of the corporation, except that no
indemnification shall be made in respect of any claim, issue, or matter as to
which such person shall have been adjudged to be liable for negligence or
misconduct in the performance of his duty to the corporation unless, and only to
the extent that the court of common pleas, or the court in which such action or
suit was brought shall determine upon application that, despite the adjudication
of liability, but in view of all the circumstances of the case, such person is
fairly and reasonably entitled to indemnity for such expenses as the court of
common pleas or such other court shall deem proper.
(3) To the extent that a director, trustee, officer, employee, or agent has
been successful on the merits or otherwise in defense of any action, suit, or
proceeding referred to in sections (1) and (2) of this article, or in defense of
any claim, issue, or matter therein, he shall be indemnified against expenses,
including attorneys' fees, actually and reasonably incurred by him in connection
therewith.
(4) Any indemnification under sections (1) and (2) of this article, unless
ordered by a court, shall be made by the corporation only as authorized in the
specific case upon a determination that indemnification of the director,
trustee, officer, employee, or agent is proper in the circumstances because he
has met the applicable standard of conduct set forth in sections (1) and (2) of
this article. Such determination shall be made (a) by a majority vote of a
quorum consisting of directors of the indemnifying corporation who were not and
are not parties to or threatened with any such action, suit, or proceeding, or
(b) if such a quorum is not obtainable or if a majority vote of a quorum of
disinterested directors so directs, in a written opinion by independent legal
counsel other than an attorney, or a firm having associated with it an attorney,
who has been retained by or who has performed services for the corporation, or
any person to be indemnified within the past five years, or (c) by the
shareholders, or (d) by the court of common pleas or the court in which such
action, suit, or proceeding was brought. Any determination made by the
disinterested directors under section (4)(a) or by independent legal counsel
under section (4)(b) of this article shall be promptly communicated to the
person who threatened or brought the action or suit by or in the right of the
corporation under section (2) of this article, and within ten days after receipt
of such notification, such person shall have the right to petition the court of
common pleas or the court in which such action or suit was brought to review the
reasonableness of such determination.
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<PAGE>
(5) Expenses, including attorneys' fees incurred in defending any action,
suit, or proceeding referred to in sections (1) and (2) of this article, may be
paid by the corporation in advance of the final disposition of such action,
suit, or proceeding as authorized by the directors in the specific case upon
receipt of a written undertaking by or on behalf of the director, trustee,
officer, employee, or agent to repay such amount, unless it shall ultimately be
determined that he is entitled to be indemnified by the corporation as
authorized in this article. If a majority vote of a quorum of disinterested
directors so directs by resolution, said written undertaking need not be
submitted to the corporation. Such a determination that a written undertaking
need not be submitted to the corporation shall in no way affect the entitlement
of indemnification as authorized by this article.
(6) The indemnification provided by this article shall not be deemed
exclusive of any other rights to which those seeking indemnification may be
entitled under the articles or the regulations or any agreement, vote of
shareholders or disinterested directors, or otherwise, both as to action in his
official capacity and as to action in another capacity while holding such
office, and shall continue as to a person who has ceased to be a director,
trustee, officer, employee, or agent and shall inure to the benefit of the
heirs, executors, and administrators of such a person.
(7) The Corporation may purchase and maintain insurance on behalf of any
person who is or was a director, officer, employee, or agent of the corporation,
or is or was serving at the request of the corporation as a director, trustee,
officer, employee, or agent of another corporation (including a subsidiary of
this corporation), domestic or foreign, nonprofit or for profit, partnership,
joint venture, trust, or other enterprise against any liability asserted against
him and incurred by him in any such capacity or arising out of his status as
such, whether or not the corporation would have the power to indemnify him
against such liability under this section.
(8) As used in this section, references to "the corporation" include all
constituent corporations in a consolidation or merger and the new or surviving
corporation, so that any person who is or was a director, officer, employee, or
agent of such a constituent corporation, or is or was serving at the request of
such constituent corporation as a director, trustee, officer, employee or agent
of another corporation (including a subsidiary of this corporation), domestic or
foreign, nonprofit or for profit, partnership, joint venture, trust, or other
enterprise shall stand in the same position under this article with respect to
the new or surviving corporation as he would if he had served the new or
surviving corporation in the same capacity.
(9) The foregoing provisions of this article do not apply to any proceeding
against any trustee, investment manager or other fiduciary of an employee
benefit plan in such person's capacity as such, even though such person may also
be an agent of this corporation. The corporation may indemnify such named
fiduciaries of its employee benefit plans against all costs and expenses,
judgments, fines, settlements or other amounts actually and reasonably incurred
by or imposed upon said named fiduciary in connection with or arising out of any
claim, demand, action, suit or proceeding in which the named fiduciary may be
made a party by reason of being or having been a named fiduciary, to the same
extent it indemnifies an agent of the corporation. To the extent that the
corporation does not have the direct legal power to indemnify, the corporation
may contract with the named fiduciaries of its employee benefit plans to
indemnify them to the same extent as noted above. The corporation may purchase
and maintain insurance on behalf of such named fiduciary covering any liability
to the same extent that it contracts to indemnify.
AMENDED CODE OF REGULATIONS OF WESTERN RESERVE
ARTICLE V
INDEMNIFICATION OF DIRECTORS AND OFFICERS
Each Director, officer and member of a committee of this Corporation, and
any person who may have served at the request of this Corporation as a Director,
officer or member of a committee of
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<PAGE>
any other corporation in which this Corporation owns shares of capital stock or
of which this Corporation is a creditor (and his heirs, executors and
administrators) shall be indemnified by the Corporation against all expenses,
costs, judgments, decrees, fines or penalties as provided by, and to the extent
allowed by, Article Eighth of the Corporation's Articles of Incorporation, as
amended.
RULE 484 UNDERTAKING
Insofar as indemnification for liability arising under the Securities Act of
1933 (the "Act") may be permitted to directors, officers and controlling persons
of the registrant pursuant to the foregoing provisions, or otherwise, the
registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the registrant
in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel, the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
CONTENTS OF REGISTRATION STATEMENT
This registration statement comprises the following papers and documents:
The facing sheet
The Prospectus, consisting of 98 pages
The undertaking to file reports
Representation pursuant to section 26(e)(2)(A)
The statement with respect to indemnification
The Rule 484 undertaking The signatures
Written consent of the following persons:
(a) Alan Yaeger
(b) Thomas E. Pierpan, Esq.
(c) Sutherland, Asbill & Brennan, L.L.P.
(d) Ernst & Young LLP
(e) Price Waterhouse LLP
The following exhibits:
1. The following exhibits correspond to those required by
paragraph A to the instructions as to exhibits in Form
N-8B-2:
A. (1) Resolution of the Board of Directors of Western
Reserve establishing the Series Account (1)
(2) Not Applicable
(3) Distribution of Policies:
(a) Form of Master Service and Distribution
Compliance Agreement (5)
(b) (i) Form of Broker/Dealer Supervisory and
Service Agreement (4)
(ii) Form of Broker/Dealer Supervisory and
Service Agreement (4)
(c) See Exhibit 1.A.(3)(b)(ii)
(4) Not Applicable
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<PAGE>
(5) (a) Specimen Flexible Premium Variable Life Insurance Policy (8)
(b) Joint Insured Term Rider (8)
(c) Individual Insured Rider (8)
(d) Wealth Protector Rider (8)
(e) Terminal Illness Accelerated Death Benefit Rider
(Form Nos. ACCDB-10/94, ACCDB-CT-10/94, ACCDBIN-10/94,
ACCDB-10/94MN, ACCDBMS-01/95, ACCDBSC-02/95,
ACCDBIL-10/94) (12)
(6) (a) Second Amended Articles of Incorporation of Western
Reserve (3)
(b) Amended Code of Regulations (By-Laws) of Western Reserve (5)
(7) Not Applicable
(8) (a) Investment Advisory Agreement with the Fund (6)
(b) Sub-Advisory Agreement (6)
(9) Not Applicable
(10) Application for Flexible Premium Variable Life Insurance
Policy (8)
(11) Memorandum describing issuance, transfer and redemption
procedures (9)
2. See Exhibit 1.A.(5)
3. Opinion of Counsel as to the legality of the securities being
registered (7)
4. No financial statement will be omitted from the Prospectus pursuant to
Instruction 1(b) or (c) of Part I
5. Not Applicable
6. Opinion and consent of Alan Yaeger as to actuarial matters pertaining to
the securities being registered (10)
7. Consent of Thomas E. Pierpan, Esq. (12)
8. Consent of Sutherland, Asbill & Brennan, L.L.P.
9. Consent of Ernst & Young LLP
10. Consent of Price Waterhouse LLP
11. (a) Powers of Attorney (12)
(b) Power of Attorney - James R. Walker
- ----------------------------------------
(1) This exhibit was previously filed on Form S-6 Registration Statement dated
September 27, 1985 (File No. 33-506) and is incorporated herein by
reference.
(2) This exhibit was previously filed on Form S-6 Registration Statement dated
September 25, 1989 (File No. 33-31140) and is incorporated herein by
reference.
(3) This exhibit was previously filed on Post-Effective Amendment No.1 to
Form S-6 Registration Statement dated May 1, 1989 (File No. 33-24856) and
is incorporated herein by reference.
(4) This exhibit was previously filed on Pre-Effective Amendment No. 1 to
Form S-6 Registration Statement dated December 19, 1989 (File No. 33-31140)
and is incorporated herein by reference.
(5) This exhibit was previously filed on Post-Effective Amendment No. 3 to
Form N-4 Registration Statement dated March 1, 1991 (File No. 33-24856) and
is incorporated herein by reference.
(6) This exhibit was previously filed on Post-Effective Amendment No. 6 to
Form N-1A Registration Statement dated March 1, 1991 (File No. 33-507) and
is incorporated herein by reference.
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<PAGE>
(7) This exhibit was previously filed on Post-Effective Amendment No. 2 to Form
S-6 Registration Statement dated May 1, 1991 (File No. 33-31140) and is
incorporated herein by reference.
(8) This exhibit was previously filed on Form S-6 Registration Statement dated
September 20, 1993 (File No. 33-69138) and is incorporated herein by
reference.
(9) This exhibit was previously filed on Pre-Effective Amendment No. 1 to Form
S-6 Registration Statement dated December 20, 1993 (File No. 33-69138) and
is incorporated herein by reference.
(10) This exhibit was previously filed on Post-Effective Amendment No. 1 to Form
S-6 Registration Statement dated February 22, 1994 (File No. 33-69138) and
is incorporated herein by reference.
(11) This exhibit was previously filed on Post-Effective Amendment No. 3 to Form
S-6 Registration Statement dated December 30, 1994 (File No. 33-69138) and
is incorporated herein by reference.
(12) This exhibit was previously filed on Post-Effective Amendment No. 5 to Form
S-6 Registration Statement dated April 26, 1995 (File No. 33-69138) and is
incorporated herein by reference.
II-8
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant,
WRL Series Life Account, certifies that it meets all the requirements for
effectiveness of this Registration Statement pursuant to Rule 485(b) under the
Securities Act of 1933 and has duly caused this Post-Effective Amendment No. 8
to its Registration Statement to be signed on its behalf by the undersigned
thereunto duly authorized, and its seal to be hereunto affixed and attested, all
in the City of Largo, County of Pinellas, Florida on this 20th day of December,
1996.
(SEAL) WRL SERIES LIFE ACCOUNT
------------------------------------------
Registrant
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
------------------------------------------
Depositor
ATTEST:
/s/ THOMAS E. PIERPAN By: /s/ JOHN R. KENNEY
- ----------------------- ------------------
Thomas E. Pierpan John R. Kenney
Vice President Chairman of the Board,
Chief Executive Officer and President
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment No. 8 to the Registration Statement has been signed
below by the following persons in the capacities and on the dates indicated.
SIGNATURE AND TITLE DATE
------------------- ----
/s/ JOHN R. KENNEY December 20, 1996
- -------------------------------
John R. Kenney, Chairman of the
Board, Chief Executive Officer
and President
/s/ RICHARD B. FRANZ, II December 20, 1996
- ---------------------------------
Richard B. Franz, II, Senior Vice
President and Treasurer
/s/ ALAN M. YAEGER December 20, 1996
- ---------------------------------------------
Alan M. Yaeger, Executive Vice
President, Actuary & Chief Financial Officer*
- ----------------------------
*Principal Financial Officer
<PAGE>
/s/ KENNETH P. BEIL December 20, 1996
- --------------------------
Kenneth P. Beil, Assistant
Vice President & Principal
Accounting Officer**
/s/ PATRICK S. BAIRD December 20, 1996
- -------------------------------
Patrick S. Baird, Director ***/
/s/ LYMAN H. TREADWAY December 20, 1996
- ---------------------
Lyman H. Treadway
/s/ JACK E. ZIMMERMAN December 20, 1996
- --------------------------------
Jack E. Zimmerman, Director ***/
/s/ JAMES R. WALKER December 20, 1996
- ------------------------------
James R. Walker, Director ***/
- --------------------------------
** Principal Accounting Officer
***/ /s/ THOMAS E. PIERPAN
- --- -----------------------------
Signed by: Thomas E. Pierpan
as Attorney-in-fact
EXHIBIT 99.1
Exhibit 8
Consent of Sutherland, Asbill & Brennan, L.L.P.
<PAGE>
S.A.B. letterhead
December 24, 1996
Board of Directors
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
201 Highland Avenue
Largo, Florida 33770
RE: WRL Series Life Account
FILE NO. 33-69138
Gentlemen:
We hereby consent to the use of our name under the caption "Legal
Matters" in the Prospectus contained in Post-Effective Amendment No. 8 to the
Registration Statement on Form S-6 (File No. 33-69138) of the WRL Series Life
Account filed by Western Reserve Life Assurance Co. of Ohio with the Securities
and Exchange Commission. In giving this consent, we do not admit that we are in
the category of persons whose consent is required under Section 7 of the
Securities Act of 1933.
Very truly yours,
SUTHERLAND, ASBILL & BRENNAN, L.L.P.
By: /s/ STEPHEN E. ROTH
---------------------------
Stephen E. Roth
EXHIBIT 99.2
Exhibit 9
Consent of Ernst & Young LLP
<PAGE>
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the caption "Experts" and to the
incorporation by reference therein of our report dated February 23, 1996, with
respect to the statutory-basis financial statements and schedules of Western
Reserve Life Assurance Co. of Ohio incorporated by reference in Post-Effective
Amendment No. 8 to Registration Statement (Form S-6 No. 33-69138) and related
Prospectus of WRL Series Life Account.
ERNST & YOUNG LLP
Des Moines, Iowa
December 19, 1996
EXHIBIT 99.3
Exhibit 10
Consent of Price Waterhouse LLP
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in this Prospectus
constituting part of this Post-Effective Amendment No. 8 to the registration
statement on Form S-6 of the Prospectus dated May 1, 1996, as filed with
Post-Effective Amendment No. 7 to the registration statement on Form S-6 of the
WRL Series Life Account which includes our report dated January 31, 1996,
relating to the financial statements and selected per unit data and ratios of
the sub-accounts comprising the WRL Series Life Account, which appears in such
Prospectus. We further consent to the reference to us under the heading
"Experts" in such Prospectus.
PRICE WATERHOUSE LLP
Kansas City, Missouri
December 23, 1996
EXHIBIT 99.4
Exhibit 11(b)
Power of Attorney - James R. Walker
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned hereby makes,
constitutes and appoints WILLIAM H. GEIGER, PRISCILLA I. HECHLER, THOMAS E.
PIERPAN and ALAN M. YAEGER, and each of them, severally, his true and lawful
attorneys and agents in his name, place and stead and on his behalf (a) to sign
and cause to be filed registration statements of WRL Series Life Account under
the Securities Act of 1933 and the Investment Company Act of 1940, and all
amendments, consents and exhibits thereto; (b) to withdraw such statements or
any amendments or exhibits and make requests for acceleration in connection
therewith; (c) to take all other action of whatever kind or nature in connection
with such registration statements which said attorneys may deem advisable; and
(d) to make, file, execute, amend and withdraw documents of every kind, and to
take other action of whatever kind they may elect, for the purpose of complying
with the laws of any state relating to the sale of securities of the WRL Series
Life Account, hereby ratifying and confirming all actions of any of said
attorneys and agents hereunder. Said attorneys or agents may act jointly or
severally, and the action of one shall bind the undersigned as fully as if two
or more had acted together.
/s/ JAMES R. WALKER
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James R. Walker, Director
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Date
