<PAGE> 1
A N N U A L R E P O R T
D E C E M B E R 3 1 , 1 9 9 5
---------------------------------------------
WRL SERIES
LIFE ACCOUNT
---------------------------------------------
WESTERN RESERVE LIFE
ASSURANCE CO. OF OHIO
February 1996
ACC00003-A (2/96)
<PAGE> 2
- --------------------------------------------------------------------------------
T A B L E O F C O N T E N T S
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
<S> <C>
Report of Independent Accountants..................... 1
WRL SERIES LIFE ACCOUNT
Financial Statements:
Money Market Sub-Account..................... 2
Bond Sub-Account............................. 4
Growth Sub-Account........................... 6
Short-to-Intermediate Government
Sub-Account............................... 8
Global Sub-Account........................... 10
Equity-Income Sub-Account.................... 12
Emerging Growth Sub-Account.................. 14
Aggressive Growth Sub-Account................ 16
Balanced Sub-Account......................... 18
Utility Sub-Account.......................... 20
Tactical Asset Allocation Sub-Account........ 22
Notes to Financial Statements..................... 24
</TABLE>
<PAGE> 3
WRL SERIES LIFE ACCOUNT
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of Western Reserve Life Assurance Co. of Ohio
and Policyholders of the WRL Series Life Account
In our opinion, the accompanying statements of assets, liabilities and
equity accounts and the related statements of operations and of changes in
equity accounts and the selected per unit data and ratios present fairly, in all
material respects, the financial position of the Money Market, Bond, Growth,
Short-to-Intermediate Government, Global, Equity-Income, Emerging Growth,
Aggressive Growth, Balanced, Utility and Tactical Asset Allocation Sub-Accounts
of the WRL Series Life Account (a separate account of Western Reserve Life
Assurance Co. of Ohio, hereafter referred to as the "Life Account") at December
31, 1995, the results of each of their operations, the changes in each of their
equity accounts and the selected per unit data and ratios for each of the
periods indicated, in conformity with generally accepted accounting principles.
These financial statements and selected per unit data and ratios (hereafter
referred to as "financial statements") are the responsibility of the Life
Account's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Kansas City, Missouri
January 31, 1996
- --------------------------------------------------------------------------------
1
<PAGE> 4
WRL SERIES LIFE ACCOUNT
MONEY MARKET SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Money Market Portfolio
(10,819,939.810 shares;
cost $ 10,819,940)..................... $ 10,819,940
Accrued transfers from (to)
depositor - net.......................... (61,316)
-----------------
Total assets........................... 10,758,624
-----------------
LIABILITIES:................................. 0
-----------------
Total net assets....................... $ 10,758,624
===================
EQUITY ACCOUNTS:
Policy Owners' equity:
Money Market sub-account
(725,394.862557 units;
$ 14.831403 unit value)................ $ 10,758,624
-----------------
Total equity........................... $ 10,758,624
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 478,782
Capital gain distributions............... 0
-----------------
478,782
EXPENSES:
Mortality and expense risk charges....... 81,372
-----------------
Net investment income (loss)........... 397,410
-----------------
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......................... $ 397,410
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss)........................................................... $ 397,410 $ 185,968
Net gain (loss) on investments......................................................... 0 0
---------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations............................................................ 397,410 185,968
---------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed).................................................... 3,139,280 6,263,945
---------------- -----------------
Less cost of units redeemed:
Administrative charges............................................................... 1,356,484 1,261,165
Policy loans......................................................................... 219,767 57,873
Surrender benefits................................................................... 899,893 409,880
Death benefits....................................................................... 7,670 562
---------------- -----------------
2,483,814 1,729,480
---------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions.......................................................... 655,466 4,534,465
---------------- -----------------
Net increase (decrease) in equity accounts........................................... 1,052,876 4,720,433
EQUITY ACCOUNTS:
Beginning of period.................................................................... 9,705,748 4,985,315
---------------- -----------------
End of period.......................................................................... $ 10,758,624 $ 9,705,748
================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
2
<PAGE> 5
WRL SERIES LIFE ACCOUNT
MONEY MARKET SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
------------------------------------------------------------------------
1995 1994 1993 1992 1991
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 14.19 $ 13.84 $ 13.63 $ 13.33 $ 12.78
Income from operations:
Net investment income (loss)................ .64 .35 .21 .30 .55
Net realized and unrealized
gain (loss) on investments................ .00 .00 .00 .00 .00
-------- ------- ------- ------- -------
Total income (loss) from operations....... .64 .35 .21 .30 .55
-------- ------- ------- ------- -------
Accumulation unit value, end of period.......... $ 14.83 $ 14.19 $ 13.84 $ 13.63 $ 13.33
======== ======== ======== ======== ========
Total return.................................... 4.49% 2.58% 1.52% 2.24% 4.34%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 10,759 $ 9,706 $ 4,985 $ 4,619 $ 4,042
Ratio of net investment income (loss)
to average net assets....................... 4.37% 2.66% 1.51% 2.12% 4.28%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
3
<PAGE> 6
WRL SERIES LIFE ACCOUNT
BOND SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Bond Portfolio
(886,633.291 shares;
cost $ 9,906,273)...................... $ 10,059,038
Accrued transfers from (to)
depositor - net.......................... 7,094
-----------------
Total assets........................... 10,066,132
-----------------
LIABILITIES:................................. 0
-----------------
Total net assets....................... $ 10,066,132
===================
EQUITY ACCOUNTS:
Policy Owners' equity:
Bond sub-account
(511,648.226174 units;
$ 19.673931 unit value)................ $ 10,066,132
-----------------
Total equity........................... $ 10,066,132
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 531,010
Capital gain distributions............... 0
-----------------
531,010
EXPENSES:
Mortality and expense risk charges....... 71,033
-----------------
Net investment income (loss)........... 459,977
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... (127,916)
Change in unrealized appreciation
(depreciation)......................... 1,208,073
-----------------
Net gain (loss) on investments......... 1,080,157
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 1,540,134
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 459,977 $ 346,531
Net gain (loss) on investments........................................................ 1,080,157 (901,953)
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 1,540,134 (555,422)
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... 3,749,029 678,317
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 916,494 595,277
Policy loans........................................................................ 197,829 57,084
Surrender benefits.................................................................. 357,384 194,018
Death benefits...................................................................... 10,202 2,326
----------------- -----------------
1,481,909 848,705
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... 2,267,120 (170,388)
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... 3,807,254 (725,810)
EQUITY ACCOUNTS:
Beginning of period................................................................... 6,258,878 6,984,688
----------------- -----------------
End of period......................................................................... $ 10,066,132 $ 6,258,878
=================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
4
<PAGE> 7
WRL SERIES LIFE ACCOUNT
BOND SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
------------------------------------------------------------------------
1995 1994 1993 1992 1991
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 16.14 $ 17.50 $ 15.57 $ 14.68 $ 12.48
Income from operations:
Net investment income (loss)................ 1.05 .89 2.11 1.00 .48
Net realized and unrealized
gain (loss) on investments................ 2.48 (2.25) (.18) (.11) 1.72
-------- ------- ------- ------- -------
Total income (loss) from operations....... 3.53 (1.36) 1.93 .89 2.20
-------- ------- ------- ------- -------
Accumulation unit value, end of period.......... $ 19.67 $ 16.14 $ 17.50 $ 15.57 $ 14.68
========= ======== ======== ======== ========
Total return.................................... 21.89% (7.77)% 12.40% 6.08% 17.63%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 10,066 $ 6,259 $ 6,985 $ 4,558 $ 3,055
Ratio of net investment income (loss)
to average net assets....................... 5.80% 5.57% 12.92% 6.69% 3.59%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
5
<PAGE> 8
WRL SERIES LIFE ACCOUNT
GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Growth Portfolio
(8,285,195.096 shares;
cost $ 202,613,364).................. $ 262,315,405
Accrued transfers from (to)
depositor - net........................ 151,700
-----------------
Total assets......................... 262,467,105
-----------------
LIABILITIES:............................... 0
-----------------
Total net assets..................... $ 262,467,105
=====================
EQUITY ACCOUNTS:
Policy Owners' equity:
Growth sub-account
(6,329,021.828348 units;
$ 41.470406 unit value).............. $ 262,467,105
-----------------
Total equity......................... $ 262,467,105
=====================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
INVESTMENT INCOME: 1995
<S> <C>
Dividend income......................... $ 1,182,462
Capital gain distributions.............. 23,952,283
----------------
25,134,745
EXPENSES:
Mortality and expense risk charges...... 1,884,365
----------------
Net investment income (loss).......... 23,250,380
----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions.......................... 5,296,297
Change in unrealized appreciation
(depreciation)........................ 49,505,485
----------------
Net gain (loss) on investments........ 54,801,782
----------------
Net increase (decrease) in equity
accounts resulting from
operations........................ $ 78,052,162
====================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31, YEAR ENDED
1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss)........................................................... $ 23,250,380 $ 242,685
Net gain (loss) on investments......................................................... 54,801,782 (16,096,859)
---------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations............................................................ 78,052,162 (15,854,174)
---------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed).................................................... 61,850,933 37,295,869
---------------- -----------------
Less cost of units redeemed:
Administrative charges............................................................... 23,714,204 20,971,223
Policy loans......................................................................... 5,518,596 2,955,838
Surrender benefits................................................................... 8,982,170 5,498,322
Death benefits....................................................................... 711,078 282,972
---------------- -----------------
38,926,048 29,708,355
---------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions.......................................................... 22,924,885 7,587,514
---------------- -----------------
Net increase (decrease) in equity accounts........................................... 100,977,047 (8,266,660)
EQUITY ACCOUNTS:
Beginning of period.................................................................... 161,490,058 169,756,718
---------------- -----------------
End of period.......................................................................... $ 262,467,105 $ 161,490,058
================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
6
<PAGE> 9
WRL SERIES LIFE ACCOUNT
GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
---------------------------------------------------------------
1995 1994 1993 1992
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 28.44 $ 31.30 $ 30.37 $ 29.95
Income from operations:
Net investment income (loss)................ 3.89 .04 .46 1.09
Net realized and unrealized
gain (loss) on investments................ 9.14 (2.90) .47 (.67)
--------- --------- --------- ---------
Total income (loss) from operations....... 13.03 (2.86) .93 .42
--------- --------- --------- ---------
Accumulation unit value, end of period.......... $ 41.47 $ 28.44 $ 31.30 $ 30.37
========== ========== ========== ==========
Total return.................................... 45.81% (9.13)% 3.06% 1.41%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 262,467 $ 161,490 $ 169,757 $ 146,053
Ratio of net investment income (loss)
to average net assets....................... 11.05% .16% 1.56% 3.84%
<CAPTION>
1991
---------
<S> <C>
Accumulation unit value, beginning of period.... $ 18.91
Income from operations:
Net investment income (loss)................ 1.72
Net realized and unrealized
gain (loss) on investments................ 9.32
---------
Total income (loss) from operations....... 11.04
---------
Accumulation unit value, end of period.......... $ 29.95
==========
Total return.................................... 58.37%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 111,375
Ratio of net investment income (loss)
to average net assets....................... 7.14%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
7
<PAGE> 10
WRL SERIES LIFE ACCOUNT
SHORT-TO-INTERMEDIATE GOVERNMENT SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Short-to-Intermediate Government
Portfolio
(142,006.075 shares;
cost $ 1,440,621)...................... $ 1,479,151
Accrued transfers from (to)
depositor - net.......................... 38,834
-----------------
Total assets........................... 1,517,985
-----------------
LIABILITIES:................................. 0
-----------------
Total net assets....................... $ 1,517,985
===================
EQUITY ACCOUNTS:
Policy Owners' equity:
Short-to-Intermediate Government
sub-account
(131,385.750734 units;
$ 11.553647 unit value)................ $ 1,517,985
-----------------
Total equity........................... $ 1,517,985
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 72,133
Capital gain distributions............... 0
-----------------
72,133
EXPENSES:
Mortality and expense risk charges....... 10,047
-----------------
Net investment income (loss)........... 62,086
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 2,109
Change in unrealized appreciation
(depreciation)......................... 66,278
-----------------
Net gain (loss) on investments......... 68,387
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 130,473
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 62,086 $ 37,124
Net gain (loss) on investments........................................................ 68,387 (49,327)
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 130,473 (12,203)
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... 679,242 515,009
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 141,954 108,685
Policy loans........................................................................ 52,521 3,307
Surrender benefits.................................................................. 41,967 11,985
Death benefits...................................................................... 144 15,256
----------------- -----------------
236,586 139,233
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... 442,656 375,776
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... 573,129 363,573
Depositor's equity contribution (redemption).......................................... 0 (826,666)
EQUITY ACCOUNTS:
Beginning of period................................................................... 944,856 1,407,949
----------------- -----------------
End of period......................................................................... $ 1,517,985 $ 944,856
=================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
8
<PAGE> 11
WRL SERIES LIFE ACCOUNT
SHORT-TO-INTERMEDIATE GOVERNMENT SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
-------------------------------------------------------
1995 1994 1993 1992+
------- ------- ------- -------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 10.27 $ 10.40 $ 10.04 $ 10.00
Income from operations:
Net investment income (loss)................ .61 .40 .14 .01
Net realized and unrealized
gain (loss) on investments................ .67 (.53) .22 .03
------- ------- ------- -------
Total income (loss) from operations....... 1.28 (.13) .36 .04
------- ------- ------- -------
Accumulation unit value, end of period.......... $ 11.55 $ 10.27 $ 10.40 $ 10.04
======== ======== ======== ========
Total return.................................... 12.53% (1.32)% 3.64% .38%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 1,518 $ 945 $ 1,408 $ 803
Ratio of net investment income (loss)
to average net assets....................... 5.53% 4.06% 1.39% .16%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was December 3, 1992. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
9
<PAGE> 12
WRL SERIES LIFE ACCOUNT
GLOBAL SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Global Portfolio
(2,386,494.041 shares;
cost $ 33,426,846)..................... $ 37,028,035
Accrued transfers from (to)
depositor - net.......................... 20,662
-----------------
Total assets........................... 37,048,697
-----------------
LIABILITIES:................................. 0
-----------------
Total net assets....................... $ 37,048,697
===================
EQUITY ACCOUNTS:
Policy Owners' equity:
Global sub-account
(3,080,374.719544 units;
$ 11.949748 unit value)................ $ 36,809,702
Depositors' equity:
Global sub-account
(20,000.000000 units;
$ 11.949748 unit value)................ 238,995
-----------------
Total equity........................... $ 37,048,697
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 37,966
Capital gain distributions............... 1,399,851
-----------------
1,437,817
EXPENSES:
Mortality and expense risk charges....... 250,072
-----------------
Net investment income (loss)........... 1,187,745
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 153,618
Change in unrealized appreciation
(depreciation)......................... 4,472,385
-----------------
Net gain (loss) on investments......... 4,626,003
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 5,813,748
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994*
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 1,187,745 $ 763,643
Net gain (loss) on investments........................................................ 4,626,003 (875,349)
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 5,813,748 (111,706)
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... 15,012,786 23,149,750
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 4,017,781 1,181,608
Policy loans........................................................................ 666,264 142,084
Surrender benefits.................................................................. 721,584 234,323
Death benefits...................................................................... 44,234 8,003
----------------- -----------------
5,449,863 1,566,018
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... 9,562,923 21,583,732
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... 15,376,671 21,472,026
Depositor's equity contribution (redemption).......................................... 0 200,000
EQUITY ACCOUNTS:
Beginning of period................................................................... 21,672,026 0
----------------- -----------------
End of period......................................................................... $ 37,048,697 $ 21,672,026
=================== ===================
</TABLE>
* The inception date of this sub-account was March 1, 1994.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
10
<PAGE> 13
WRL SERIES LIFE ACCOUNT
GLOBAL SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
----------------------------
1995 1994+
-------- -----------
<S> <C> <C>
Accumulation unit value, beginning of period.... $ 9.80 $ 10.00
Income from operations:
Net investment income (loss)................ .45 .71
Net realized and unrealized
gain (loss) on investments................ 1.70 (.91)
-------- -----------
Total income (loss) from operations....... 2.15 (.20)
-------- -----------
Accumulation unit value, end of period.......... $ 11.95 $ 9.80
========= =============
Total return.................................... 21.96% (2.02)%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 37,049 $ 21,672
Ratio of net investment income (loss)
to average net assets....................... 4.25% 7.39%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was March 1, 1994. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
11
<PAGE> 14
WRL SERIES LIFE ACCOUNT
EQUITY-INCOME SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Equity-Income Portfolio
(3,079,777.685 shares;
cost $ 35,168,616)..................... $ 39,619,606
Accrued transfers from (to)
depositor - net.......................... 28,669
-----------------
Total assets........................... 39,648,275
-----------------
LIABILITIES:................................. 0
-----------------
Total net assets....................... $ 39,648,275
===================
EQUITY ACCOUNTS:
Policy Owners' equity:
Equity-Income sub-account
(2,885,803.576534 units;
$ 13.739076 unit value)................ $ 39,648,275
-----------------
Total equity........................... $ 39,648,275
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 1,009,870
Capital gain distributions............... 1,034,053
-----------------
2,043,923
EXPENSES:
Mortality and expense risk charges....... 287,834
-----------------
Net investment income (loss)........... 1,756,089
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 220,725
Change in unrealized appreciation
(depreciation)......................... 4,771,750
-----------------
Net gain (loss) on investments......... 4,992,475
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 6,748,564
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 1,756,089 $ 347,798
Net gain (loss) on investments........................................................ 4,992,475 (596,517)
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 6,748,564 (248,719)
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... 14,236,727 13,516,053
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 3,380,854 1,893,532
Policy loans........................................................................ 657,750 296,848
Surrender benefits.................................................................. 918,863 406,848
Death benefits...................................................................... 28,153 19,871
----------------- -----------------
4,985,620 2,617,099
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... 9,251,107 10,898,954
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... 15,999,671 10,650,235
Depositor's equity contribution (redemption).......................................... 0 (344,138)
EQUITY ACCOUNTS:
Beginning of period................................................................... 23,648,604 13,342,507
----------------- -----------------
End of period......................................................................... $ 39,648,275 $ 23,648,604
=================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
12
<PAGE> 15
WRL SERIES LIFE ACCOUNT
EQUITY-INCOME SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
------------------------------------------
1995 1994 1993+
-------- -------- --------
<S> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 11.12 $ 11.28 $ 10.00
Income from operations:
Net investment income (loss)................ .68 .18 .19
Net realized and unrealized
gain (loss) on investments................ 1.94 (.34) 1.09
-------- -------- --------
Total income (loss) from operations....... 2.62 (.16) 1.28
-------- -------- --------
Accumulation unit value, end of period.......... $ 13.74 $ 11.12 $ 11.28
========= ========= =========
Total return.................................... 23.55% (1.42)% 12.81%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 39,648 $ 23,649 $ 13,343
Ratio of net investment income (loss)
to average net assets....................... 5.47% 1.93% 1.89%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was March 1, 1993. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
13
<PAGE> 16
WRL SERIES LIFE ACCOUNT
EMERGING GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Emerging Growth Portfolio
(4,177,036.054 shares;
cost $ 53,301,177)..................... $ 67,854,423
Accrued transfers from (to)
depositor - net.......................... 50,530
-----------------
Total assets........................... 67,904,953
-----------------
LIABILITIES:................................. 0
-----------------
Total net assets....................... $ 67,904,953
===================
EQUITY ACCOUNTS:
Policy Owners' equity:
Emerging Growth sub-account
(4,100,892.510689 units;
$ 16.558579 unit value)................ $ 67,904,953
-----------------
Total equity........................... $ 67,904,953
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 10,599
Capital gain distributions............... 2,799,377
-----------------
2,809,976
EXPENSES:
Mortality and expense risk charges....... 453,072
-----------------
Net investment income (loss)........... 2,356,904
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 276,206
Change in unrealized appreciation
(depreciation)......................... 15,904,664
-----------------
Net gain (loss) on investments......... 16,180,870
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 18,537,774
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 2,356,904 $ (242,847)
Net gain (loss) on investments........................................................ 16,180,870 (2,055,599)
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 18,537,774 (2,298,446)
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... 21,556,186 25,803,270
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 5,846,452 3,746,668
Policy loans........................................................................ 1,387,434 725,423
Surrender benefits.................................................................. 1,602,690 533,353
Death benefits...................................................................... 38,971 42,065
----------------- -----------------
8,875,547 5,047,509
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... 12,680,639 20,755,761
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... 31,218,413 18,457,315
Depositor's equity contribution (redemption).......................................... 0 (390,327)
EQUITY ACCOUNTS:
Beginning of period................................................................... 36,686,540 18,619,552
----------------- -----------------
End of period......................................................................... $ 67,904,953 $ 36,686,540
=================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
14
<PAGE> 17
WRL SERIES LIFE ACCOUNT
EMERGING GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
------------------------------------------
1995 1994 1993+
-------- -------- --------
<S> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 11.38 $ 12.40 $ 10.00
Income from operations:
Net investment income (loss)................ .65 (.09) (.09)
Net realized and unrealized
gain (loss) on investments................ 4.53 (.93) 2.49
-------- -------- --------
Total income (loss) from operations....... 5.18 (1.02) 2.40
-------- -------- --------
Accumulation unit value, end of period.......... $ 16.56 $ 11.38 $ 12.40
========= ========= =========
Total return.................................... 45.49% (8.18)% 23.96%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 67,905 $ 36,687 $ 18,620
Ratio of net investment income (loss)
to average net assets....................... 4.66% (.86)% (.77)%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was March 1, 1993. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
15
<PAGE> 18
WRL SERIES LIFE ACCOUNT
AGGRESSIVE GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Aggressive Growth Portfolio
(2,477,941.266 shares;
cost $ 29,816,384)................... $ 32,833,608
Accrued transfers from (to)
depositor - net........................ 70,361
-----------------
Total assets......................... 32,903,969
-----------------
LIABILITIES:............................... 0
-----------------
Total net assets..................... $ 32,903,969
=====================
EQUITY ACCOUNTS:
Policy Owners' equity:
Aggressive Growth sub-account
(2,450,804.260823 units;
$ 13.425784 unit value).............. $ 32,903,969
-----------------
Total equity......................... $ 32,903,969
=====================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
INVESTMENT INCOME: 1995
<S> <C>
Dividend income......................... $ 103
Capital gain distributions.............. 866,971
----------------
867,074
EXPENSES:
Mortality and expense risk charges...... 203,080
----------------
Net investment income (loss).......... 663,994
----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions.......................... 1,785,515
Change in unrealized appreciation
(depreciation)........................ 2,638,835
----------------
Net gain (loss) on investments........ 4,424,350
----------------
Net increase (decrease) in equity
accounts resulting from
operations........................ $ 5,088,344
====================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
DECEMBER 31, DECEMBER 31,
1995 1994*
<S> <C> <C>
OPERATIONS:
Net investment income (loss)........................................................... $ 663,994 $ (27,542)
Net gain (loss) on investments......................................................... 4,424,350 384,517
---------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations............................................................ 5,088,344 356,975
---------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed).................................................... 23,169,917 8,797,727
---------------- -----------------
Less cost of units redeemed:
Administrative charges............................................................... 2,568,298 379,087
Policy loans......................................................................... 627,821 72,785
Surrender benefits................................................................... 712,307 48,513
Death benefits....................................................................... 80,922 4,971
---------------- -----------------
3,989,348 505,356
---------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions.......................................................... 19,180,569 8,292,371
---------------- -----------------
Net increase (decrease) in equity accounts........................................... 24,268,913 8,649,346
Depositor's equity contribution (redemption)........................................... (274,290) 260,000
EQUITY ACCOUNTS:
Beginning of period.................................................................... 8,909,346 0
---------------- -----------------
End of period.......................................................................... $ 32,903,969 $ 8,909,346
================== ===================
</TABLE>
* The inception date of this sub-account was March 1, 1994.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
16
<PAGE> 19
WRL SERIES LIFE ACCOUNT
AGGRESSIVE GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
----------------------------
1995 1994+
-------- -----------
<S> <C> <C>
Accumulation unit value, beginning of period.... $ 9.82 $ 10.00
Income from operations:
Net investment income (loss)................ .37 (.06)
Net realized and unrealized
gain (loss) on investments................ 3.24 (.12)
-------- -----------
Total income (loss) from operations....... 3.61 (.18)
-------- -----------
Accumulation unit value, end of period.......... $ 13.43 $ 9.82
========= =============
Total return.................................... 36.79% (1.85)%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 32,904 $ 8,909
Ratio of net investment income (loss)
to average net assets....................... 2.93% (.60)%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was March 1, 1994. The total return and
ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
17
<PAGE> 20
WRL SERIES LIFE ACCOUNT
BALANCED SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Balanced Portfolio
(356,742.991 shares;
cost $ 3,481,188)...................... $ 3,793,788
Accrued transfers from (to)
depositor - net.......................... 1,606
-----------------
Total assets........................... 3,795,394
-----------------
LIABILITIES:................................. 0
-----------------
Total net assets....................... $ 3,795,394
===================
EQUITY ACCOUNTS:
Policy Owners' equity:
Balanced sub-account
(321,143.504151 units;
$ 11.125506 unit value)................ $ 3,572,884
Depositors' equity:
Balanced sub-account
(20,000.000000 units;
$ 11.125506 unit value)................ 222,510
-----------------
Total equity........................... $ 3,795,394
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 128,272
Capital gain distributions............... 0
-----------------
128,272
EXPENSES:
Mortality and expense risk charges....... 25,637
-----------------
Net investment income (loss)........... 102,635
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... (6,199)
Change in unrealized appreciation
(depreciation)......................... 407,748
-----------------
Net gain (loss) on investments......... 401,549
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 504,184
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994*
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 102,635 $ 30,401
Net gain (loss) on investments........................................................ 401,549 (115,505)
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 504,184 (85,104)
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... 1,545,514 2,131,962
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 327,290 84,481
Policy loans........................................................................ 29,025 0
Surrender benefits.................................................................. 27,726 15,378
Death benefits...................................................................... 14,811 2,451
----------------- -----------------
398,852 102,310
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... 1,146,662 2,029,652
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... 1,650,846 1,944,548
Depositor's equity contribution (redemption).......................................... 0 200,000
EQUITY ACCOUNTS:
Beginning of period................................................................. 2,144,548 0
----------------- -----------------
End of period....................................................................... $ 3,795,394 $ 2,144,548
=================== ===================
</TABLE>
* The inception date of this sub-account was March 1, 1994.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
18
<PAGE> 21
WRL SERIES LIFE ACCOUNT
BALANCED SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
-----------------------
1995 1994+
------- -------
<S> <C> <C>
Accumulation unit value, beginning of period.... $ 9.37 $ 10.00
Income from operations:
Net investment income (loss)................ .37 .22
Net realized and unrealized
gain (loss) on investments................ 1.39 (.85)
------- -------
Total income (loss) from operations....... 1.76 (.63)
------- -------
Accumulation unit value, end of period.......... $ 11.13 $ 9.37
======== ========
Total return.................................... 18.73% (6.29)%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 3,795 $ 2,145
Ratio of net investment income (loss)
to average net assets....................... 3.59% 2.55%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was March 1, 1994. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
19
<PAGE> 22
WRL SERIES LIFE ACCOUNT
UTILITY SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Utility Portfolio
(236,391.086 shares;
cost $ 2,384,572)...................... $ 2,629,535
Accrued transfers from (to)
depositor - net.......................... 1,547
-----------------
Total assets........................... 2,631,082
-----------------
LIABILITIES:................................. 0
-----------------
Total net assets....................... $ 2,631,082
===================
EQUITY ACCOUNTS:
Policy Owners' equity:
Utility sub-account
(203,453.934332 units;
$ 11.774605 unit value)................ $ 2,395,590
Depositors' equity:
Utility sub-account
(20,000.000000 units;
$ 11.774605 unit value)................ 235,492
-----------------
Total equity........................... $ 2,631,082
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
INVESTMENT INCOME: 1995
<S> <C>
Dividend income......................... $ 86,266
Capital gain distributions.............. 19,740
----------------
106,006
EXPENSES:
Mortality and expense risk charges...... 17,372
----------------
Net investment income (loss).......... 88,634
----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions.......................... 44,646
Change in unrealized appreciation
(depreciation)........................ 291,882
----------------
Net gain (loss) on investments........ 336,528
----------------
Net increase (decrease) in equity
accounts resulting from
operations........................ $ 425,162
====================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
DECEMBER 31, DECEMBER 31,
1995 1994*
<S> <C> <C>
OPERATIONS:
Net investment income (loss)........................................................... $ 88,634 $ 23,434
Net gain (loss) on investments......................................................... 336,528 (58,002)
---------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations............................................................ 425,162 (34,568)
---------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed).................................................... 1,368,262 1,102,522
---------------- -----------------
Less cost of units redeemed:
Administrative charges............................................................... 221,419 42,870
Policy loans......................................................................... 26,862 0
Surrender benefits................................................................... 126,576 6,295
Death benefits....................................................................... 2,896 3,378
---------------- -----------------
377,753 52,543
---------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions.......................................................... 990,509 1,049,979
---------------- -----------------
Net increase (decrease) in equity accounts........................................... 1,415,671 1,015,411
Depositor's equity contribution (redemption)........................................... 0 200,000
EQUITY ACCOUNTS:
Beginning of period.................................................................... 1,215,411 0
---------------- -----------------
End of period.......................................................................... $ 2,631,082 $ 1,215,411
================== ===================
</TABLE>
* The inception date of this sub-account was March 1, 1994.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
20
<PAGE> 23
WRL SERIES LIFE ACCOUNT
UTILITY SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
---------------------------
1995 1994+
------- -----------
<S> <C> <C>
Accumulation unit value, beginning of period.... $ 9.49 $ 10.00
Income from operations:
Net investment income (loss)................ .49 .29
Net realized and unrealized
gain (loss) on investment................. 1.79 (.80)
------- -----------
Total income (loss) from operations....... 2.28 (.51)
------- -----------
Accumulation unit value, end of period.......... $11.77 $ 9.49
======== =============
Total return.................................... 24.14 % (5.15)%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $2,631 $ 1,215
Ratio of net investment income (loss)
to average net assets....................... 4.57 % 3.09%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date for this sub-account was March 1, 1994. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
21
<PAGE> 24
WRL SERIES LIFE ACCOUNT
TACTICAL ASSET ALLOCATION SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Tactical Asset Allocation Portfolio
(822,390.362 shares;
cost $ 8,835,438)...................... $ 9,451,157
Accrued transfers from (to)
depositor - net.......................... (5,300)
-----------------
Total assets........................... 9,445,857
-----------------
LIABILITIES:................................. 0
-----------------
Total net assets....................... $ 9,445,857
===================
EQUITY ACCOUNTS:
Policy Owners' equity:
Tactical Asset Allocation sub-account
(793,585.197167 units;
$ 11.902763 unit value)................ $ 9,445,857
-----------------
Total equity........................... $ 9,445,857
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
PERIOD ENDED
INVESTMENT INCOME: DECEMBER 31, 1995*
<S> <C>
Dividend income......................... $ 193,985
Capital gain distributions.............. 171,580
------------------
365,565
EXPENSES:
Mortality and expense risk charges...... 51,394
------------------
Net investment income (loss).......... 314,171
------------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions.......................... 118,155
Change in unrealized appreciation
(depreciation)........................ 615,719
------------------
Net gain (loss) on investments........ 733,874
------------------
Net increase (decrease) in equity
accounts resulting from
operations........................ $ 1,048,045
====================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
PERIOD ENDED
DECEMBER 31, 1995*
<S> <C>
OPERATIONS:
Net investment income (loss)................................................................................. $ 314,171
Net gain (loss) on investments............................................................................... 733,874
------------------
Net increase (decrease) in equity accounts
resulting from operations.................................................................................. 1,048,045
------------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed).......................................................................... 9,081,189
------------------
Less cost of units redeemed:
Administrative charges..................................................................................... 434,848
Policy loans............................................................................................... 145,685
Surrender benefits......................................................................................... 70,630
Death benefits............................................................................................. 22,440
------------------
673,603
------------------
Increase (decrease) in equity accounts from
capital unit transactions................................................................................ 8,407,586
------------------
Net increase (decrease) in equity accounts................................................................. 9,455,631
Depositor's equity contribution (redemption)................................................................. (9,774)
EQUITY ACCOUNTS:
Beginning of period.......................................................................................... 0
------------------
End of period................................................................................................ $ 9,445,857
====================
</TABLE>
* The inception of this sub-account was January 3, 1995.
The notes to the financial statements, are an integral part of this report.
- --------------------------------------------------------------------------------
22
<PAGE> 25
WRL SERIES LIFE ACCOUNT
TACTICAL ASSET ALLOCATION SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
-----------
1995+
-----------
<S> <C>
Accumulation unit value, beginning of period................. $ 10.00
Income from operations:
Net investment income (loss)............................. .61
Net realized and unrealized
gain (loss) on investments............................. 1.29
-----------
Total income (loss) from operations.................... 1.90
-----------
Accumulation unit value, end of period....................... $ 11.90
=============
Total return................................................. 19.03%
Ratios and supplemental data:
Net assets at end of period (in thousands)................. $ 9,446
Ratio of net investment income (loss)
to average net assets.................................... 5.47%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was January 3, 1995. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements, are an integral part of this report.
- --------------------------------------------------------------------------------
23
<PAGE> 26
WRL SERIES LIFE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
DECEMBER 31, 1995
NOTE 1 - ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES
The WRL Series Life Account (the "Life Account") was established as a
variable life insurance separate account of Western Reserve Life Assurance Co.
of Ohio ("WRL") and is registered as a unit investment trust ("Trust") under the
Investment Company Act of 1940, as amended. The Life Account contains eleven
investment options referred to as sub-accounts. Each sub-account invests in the
corresponding portfolio of the WRL Series Fund, Inc. (the "Fund"), a registered
management investment company under the Investment Company Act of 1940, as
amended. These portfolios and their respective investment management
organizations are as follows:
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT MANAGER
--------- ------------------------
<S> <C>
Money Market Janus Capital Corporation
("JCC")
Bond JCC
Growth JCC
Short-to-Intermediate AEGON USA Investment
Government Management, Inc. ("AEGON
Management")
Global JCC
Equity-Income Luther King Capital
Management Corporation
Emerging Growth Van Kampen American Capital
Asset Management, Inc.
Aggressive Growth Fred Alger Management, Inc.
Balanced AEGON Management
Utility Federated Investment
Counseling
Tactical Asset Dean Investment Associates
Allocation
</TABLE>
WRL and AEGON Management are indirectly wholly-owned subsidiaries of AEGON
USA, Inc., which is an indirect wholly-owned subsidiary of AEGON nv, a
Netherlands corporation.
On January 3, 1995, WRL made an initial contribution of $200,000 to the
Life Account, Tactical Asset Allocation sub-account, for which WRL received
20,000.000000 units. On April 20, 1995, WRL redeemed the initial contribution in
the Life Account, Tactical Asset Allocation sub-account, for $209,775.
The Life Account holds assets to support the benefits under flexible
premium variable universal life insurance policies (the "Policies") issued by
WRL, which issued the first of such Policies on October 3, 1986. The Life
Account's equity transactions are accounted for using the appropriate effective
date at the corresponding accumulation unit value.
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
The following significant accounting policies, which are in conformity with
generally accepted accounting principles for unit investment trusts, have been
consistently used in preparation of the Trust's financial statements.
A. VALUATION OF INVESTMENTS
The investments in the Fund's shares are stated at the closing net asset
value ("NAV") per share as determined by the Fund on December 31, 1995.
Investment transactions are accounted for on the trade date, using the Fund
NAV next determined after receipt of sale or redemption order without sales
charges. Dividend income and capital gain distributions are recorded on the
ex-dividend date. The cost of investments sold is determined on a first-in,
first-out basis.
B. FEDERAL INCOME TAXES
The operations of the Life Account are a part of and are taxed with the
total operations of WRL, which is taxed as a life insurance company under
the Internal Revenue Code. Under current law, the investment income of the
Life Account, including realized and unrealized capital gains, is not
taxable to WRL. Accordingly, no provision for Federal income taxes has been
made.
NOTE 2 - CHARGES AND DEDUCTIONS
Charges are assessed by WRL in connection with issuance and administration
of the Policies.
A. POLICY CHARGES
Under some forms of the Policies, sales and other administrative charges are
deducted by WRL prior to allocation of policyowner payments to the
sub-accounts. Thereafter, monthly administrative charges are deducted from
the sub-accounts, some of which continue only during the first policy year.
Contingent surrender charges may also apply.
- --------------------------------------------------------------------------------
24
<PAGE> 27
WRL SERIES LIFE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 2 - CHARGES AND DEDUCTIONS (CONTINUED)
Under the other forms of the Policies, such "front-end" and other
administrative charges are not deducted prior to allocation of the initial
premium payment but may reside as contingent surrender charges.
Under all forms of the Policy, monthly charges against policy cash values
are made to compensate WRL for costs of insurance provided.
B. LIFE ACCOUNT CHARGES
A daily charge equal to an annual rate of 0.90% of average daily net assets
of the Life Account is assessed to compensate WRL for assumption of
mortality and expense risks in connection with issuance and administration
of the Policies. This charge (not assessed at the individual policy level)
effectively reduces the value of a unit outstanding during the year.
NOTE 3 - DIVIDENDS AND DISTRIBUTIONS
Dividends of the Fund's Money Market Portfolio are declared daily and
reinvested monthly. Dividends of the remaining portfolios are declared and
reinvested semiannually, while capital gain distributions are declared and
reinvested annually. Dividends and distributions of the Fund are generally paid
to and reinvested by the Life Account the next business day after declaration.
NOTE 4 - OTHER MATTERS
As of December 31, 1995 the equity accounts include net unrealized
appreciation (depreciation) on investments as follows:
<TABLE>
<S> <C>
SUB-ACCOUNT
- ---------------
Money Market.......................... $ n/a
Bond.................................. 152,765
Growth................................ 59,702,041
Short-to-Intermediate Government...... 38,530
Global................................ 3,601,189
Equity-Income......................... 4,450,990
Emerging Growth....................... 14,553,246
Aggressive Growth..................... 3,017,224
Balanced.............................. 312,600
Utility............................... 244,963
Tactical Asset Allocation............. 615,719
</TABLE>
- --------------------------------------------------------------------------------
25
<PAGE> 28
This page is intentionally left blank.
<PAGE> 29
This page is intentionally left blank.
<PAGE> 30
This page is intentionally left blank.
<PAGE> 31
- --------------------------------------------------------------------------------
W R L S E R I E S L I F E A C C O U N T
- --------------------------------------------------------------------------------
OFFICE OF THE WRL SERIES LIFE ACCOUNT
201 Highland Avenue
Largo, FL 34640
1-800-851-9777
Ext. 6510
---------------------------------------------
DISTRIBUTOR:
InterSecurities, Inc.
201 Highland Avenue
Largo, FL 34640
---------------------------------------------
INSURER:
Western Reserve Life Assurance Co. of Ohio
201 Highland Avenue
Largo, FL 34640
---------------------------------------------
INDEPENDENT ACCOUNTANTS:
Price Waterhouse LLP
1055 Broadway
Kansas City, MO 64105
<PAGE> 32
THIS MATERIAL IS FOR CONTRACT HOLDER'S
REPORTING PURPOSES ONLY AND SHALL NOT
BE USED IN CONNECTION WITH A SOLICITATION,
OFFER OR ANY PROPOSED SALE OR PURCHASE
OF SECURITIES UNLESS PRECEDED OR
ACCOMPANIED BY A PROSPECTUS.
[WRL LOGO]
- --------------------------------------------------------------------------------
Western Reserve Life Assurance Co. of Ohio
Distributor: InterSecurities, Inc.
P.O. Box 5068 - Clearwater, FL 34618-5068
February 1996
ACC00003-A (2/96)
