August 1997
ACC00003 (8/97)
[GRAPHIC OMITTED]
<PAGE>
- --------------------------------------------------------------------------------
T A B L E O F C O N T E N T S
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
2<S> <C>
WRL SERIES LIFE ACCOUNT
Statements of Assets, Liabilities and Equity Accounts ...... 1
Statements of Operations ................................. 1
Statements of Changes in Equity Accounts .................. 5
Selected Per Unit Data and Ratios ........................ 8
Notes to Financial Statements .............................. 13
</TABLE>
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
At June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TO-
INTERMEDIATE
MONEY MARKET BOND GROWTH GOVERNMENT
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C> <C>
ASSETS:
Investments
Investment in WRL Series Fund, Inc.:
Shares ....................................... 15,336,614.890 1,170,520.806 10,546,120.209 183,672.111
================ =============== ================= ===============
Cost ....................................... $ 15,336,615 $ 12,636,798 $ 292,202,129 $ 1,904,252
================ =============== ================= ===============
Investments at net asset value ............... $ 15,336,615 $ 12,634,658 $ 408,318,335 $ 1,906,186
Accrued transfers from (to) depositor - net.... 17,977 (10,344) (280,937) (1,047)
---------------- --------------- ----------------- ---------------
Total assets .............................. 15,354,592 12,624,314 408,037,398 1,905,139
---------------- --------------- ----------------- ---------------
LIABILITIES: ................................. 1,134 933 30,342 141
---------------- --------------- ----------------- ---------------
Total net assets ........................... $ 15,353,458 $ 12,623,381 $ 408,007,056 $ 1,904,998
================ =============== ================= ===============
EQUITY ACCOUNTS:
Policy Owners' equity:
Units ....................................... 973,228.205642 637,289.991766 7,580,487.478952 157,529.745695
================ =============== ================= ===============
Unit value ................................. $ 15.775805 19.807907 $ 53.823327 $ 12.092943
================ =============== ================= ===============
Policy Owners' equity ..................... $ 15,353,458 $ 12,623,381 $ 408,007,056 $ 1,904,998
---------------- --------------- ----------------- ---------------
Depositor's equity:
Units ....................................... N/A N/A N/A N/A
================ =============== ================= ===============
Unit value ................................. $ N/A $ N/A $ N/A $ N/A
================ =============== ================= ===============
Depositor's equity ........................ N/A N/A N/A N/A
---------------- --------------- ----------------- ---------------
Total equity .............................. $ 15,353,458 $ 12,623,381 $ 408,007,056 $ 1,904,998
================ =============== ================= ===============
</TABLE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF OPERATIONS
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 368,064 $ 135,261
Capital gain distributions .............................. 0 0
----------------- --------------
368,064 135,261
EXPENSES:
Mortality and expense risk .............................. 64,471 53,109
----------------- --------------
Net investment income (loss) ........................... 303,593 82,152
----------------- --------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions.... 0 (175,355)
Change in unrealized appreciation (depreciation) ...... 0 276,338
----------------- --------------
Net gain (loss) on investments ........................ 0 100,983
----------------- --------------
Net increase (decrease) in equity accounts resulting
from operations .................................... $ 303,593 $ 183,135
================= ==============
<CAPTION>
SHORT-TO-
INTERMEDIATE
GROWTH GOVERNMENT
SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 495,370 $ 22,511
Capital gain distributions .............................. 2,782,833 0
------------------ ----------------
3,278,203 22,511
EXPENSES:
Mortality and expense risk .............................. 1,641,618 7,881
------------------ ----------------
Net investment income (loss) ........................... 1,636,585 14,630
------------------ ----------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions.... 2,900,803 1,477
Change in unrealized appreciation (depreciation) ...... 35,086,833 20,275
------------------ ----------------
Net gain (loss) on investments ........................ 37,987,636 21,752
------------------ ----------------
Net increase (decrease) in equity accounts resulting
from operations ................................... $ 39,624,221 $ 36,382
================== ================
</TABLE>
The notes to the financial statements are an integral part of this report.
1
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
At June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC AGGRESSIVE
GLOBAL TOTAL RETURN EMERGING GROWTH GROWTH
SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C> <C>
ASSETS:
Investments
Investment in WRL Series Fund, Inc.:
Shares .................................... 5,821,132.600 4,404,171.530 6,634,088.118 4,623,178.653
================= ================= ================= =================
Cost ....................................... $ 98,284,518 $ 54,356,160 $ 100,731,843 $ 62,978,073
================= ================= ================= =================
Investments at net asset value ............... $ 121,622,575 $ 69,733,653 $ 132,268,236 $ 74,801,086
Accrued transfers from (to) depositor - net (54,629) (82,332) (26,712) (127,027)
----------------- ----------------- ----------------- -----------------
Total assets .............................. 121,567,946 69,651,321 132,241,524 74,674,059
----------------- ----------------- ----------------- -----------------
LIABILITIES: ................................. 9,017 5,128 9,705 5,519
----------------- ----------------- ----------------- -----------------
Total net assets ........................... $ 121,558,929 $ 69,646,193 $ 132,231,819 $ 74,668,540
================= ================= ================= =================
EQUITY ACCOUNTS:
Policy Owners' equity:
Units ....................................... 6,899,963.609975 3,927,450.185824 6,267,554.532089 4,444,213.399187
================= ================= ================= =================
Unit value ................................. $ 17.617329 $ 17.733183 $ 21.097833 $ 16.801295
================= ================= ================= =================
Policy Owners' equity ........................ $ 121,558,929 $ 69,646,193 $ 132,231,819 $ 74,668,540
----------------- ----------------- ----------------- -----------------
Depositor's equity:
Units ....................................... N/A N/A N/A N/A
================= ================= ================= =================
Unit value ................................. $ N/A $ N/A $ N/A $ N/A
================= ================= ================= =================
Depositor's equity ........................... N/A N/A N/A N/A
----------------- ----------------- ----------------- -----------------
Total equity .............................. $ 121,558,929 $ 69,646,193 $ 132,231,819 $ 74,668,540
================= ================= ================= =================
</TABLE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF OPERATIONS
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL
SUB-ACCOUNT
<S> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 744,580
Capital gain distributions .............................. 971,067
------------------
1,715,647
EXPENSES:
Mortality and expense risk .............................. 444,531
------------------
Net investment income (loss) ........................... 1,271,116
------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions ... 253,950
Change in unrealized appreciation (depreciation) ...... 14,248,421
------------------
Net gain (loss) on investments ........................ 14,502,371
------------------
Net increase (decrease) in equity accounts
resulting from operations .......................... $ 15,773,487
==================
<CAPTION>
STRATEGIC AGGRESSIVE
TOTAL RETURN EMERGING GROWTH GROWTH
SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 103,034 $ 0 $ 0
Capital gain distributions .............................. 158,508 749,646 464,060
----------------- ------------------ ------------------
261,542 749,646 464,060
EXPENSES:
Mortality and expense risk .............................. 272,072 512,614 280,328
----------------- ------------------ ------------------
Net investment income (loss) ........................... (10,530) 237,032 183,732
----------------- ------------------ ------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions ... 227,052 680,049 300,682
Change in unrealized appreciation (depreciation) ...... 7,644,509 9,013,526 8,262,299
----------------- ------------------ ------------------
Net gain (loss) on investments ........................ 7,871,561 9,693,575 8,562,981
----------------- ------------------ ------------------
Net increase (decrease) in equity accounts
resulting from operations ........................... $ 7,861,031 $ 9,930,607 $ 8,746,713
================= ================== ==================
</TABLE>
(a) Prior to May 1, 1997, this sub-account was known as Equity-Income.
The notes to the financial statements are an integral part of this report.
2
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
At June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & TACTICAL ASSET
BALANCED INCOME ALLOCATION C.A.S.E. GROWTH
SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C> <C>
ASSETS:
Investments
Investment in WRL Series Fund, Inc.:
Shares .................................... 686,641.320 518,898.196 1,700,946.974 490,216.320
=============== =============== ================= ===============
Cost ....................................... $ 7,356,865 $ 5,881,807 $ 20,302,662 $ 6,360,346
=============== =============== ================= ===============
Investments at net asset value ............... $ 8,339,780 $ 6,552,645 $ 23,082,081 $ 6,879,424
Accrued transfers from (to) depositor - net ... (9,702) (95,150) (76,174) (89,676)
--------------- --------------- ----------------- ---------------
Total assets .............................. 8,330,078 6,457,495 23,005,907 6,789,748
--------------- --------------- ----------------- ---------------
LIABILITIES: ................................. 614 480 1,697 500
--------------- --------------- ----------------- ---------------
Total net assets ........................... $ 8,329,464 $ 6,457,015 $ 23,004,210 $ 6,789,248
=============== =============== ================= ===============
EQUITY ACCOUNTS:
Policy Owners' equity:
Units ....................................... 635,421.716863 457,035.072263 1,577,292.793739 599,759.291180
=============== =============== ================= ===============
Unit value ................................. $ 13.108560 $ 14.128051 $ 14.584616 $ 11.319955
=============== =============== ================= ===============
Policy Owners' equity ..................... $ 8,329,464 $ 6,457,015 $ 23,004,210 $ 6,789,248
--------------- --------------- ----------------- ---------------
Depositor's equity:
Units ....................................... N/A N/A N/A N/A
=============== =============== ================= ===============
Unit value ................................. $ N/A $ N/A $ N/A $ N/A
=============== =============== ================= ===============
Depositor's equity ........................ N/A N/A N/A N/A
--------------- --------------- ----------------- ---------------
Total equity .............................. $ 8,329,464 $ 6,457,015 $ 23,004,210 $ 6,789,248
=============== =============== ================= ===============
</TABLE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF OPERATIONS
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH &
BALANCED INCOME
SUB-ACCOUNT SUB-ACCOUNT (A)
<S> <C> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 37,522 $ 14,590
Capital gain distributions .............................. 59,592 79,136
---------------- ----------------
97,114 93,726
EXPENSES:
Mortality and expense risk .............................. 32,800 25,618
---------------- ----------------
Net investment income (loss) ........................... 64,314 68,108
---------------- ----------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions ... 42,396 79,595
Change in unrealized appreciation (depreciation) ...... 418,713 334,886
---------------- ----------------
Net gain (loss) on investments ........................ 461,109 414,481
---------------- ----------------
Net increase (decrease) in equity accounts resulting
from operations .................................... $ 525,423 $ 482,589
================ ================
<CAPTION>
TACTICAL ASSET
ALLOCATION C.A.S.E. GROWTH
SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 52,773 $ 2,199
Capital gain distributions .............................. 143,908 36,019
------------------ ----------------
196,681 38,218
EXPENSES:
Mortality and expense risk .............................. 90,932 25,140
------------------ ----------------
Net investment income (loss) ........................... 105,749 13,078
------------------ ----------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions ... 199,141 10,869
Change in unrealized appreciation (depreciation) ...... 1,313,608 297,334
------------------ ----------------
Net gain (loss) on investments ........................ 1,512,749 308,203
------------------ ----------------
Net increase (decrease) in equity accounts resulting
from operations .................................... $ 1,618,498 $ 321,281
================== ================
</TABLE>
(a) Prior to May 1, 1997, this sub-account was known as Utility.
The notes to the financial statements are an integral part of this report.
3
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
At June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL U.S.
VALUE EQUITY EQUITY EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C>
ASSETS:
Investments
Investment in WRL Series Fund, Inc.:
Shares .......................................... 1,323,625.350 149,357.747 96,244.604
================== ================ ==============
Cost ............................................. $ 14,950,306 $ 1,555,406 $ 1,042,688
================== ================ ==============
Investments at net asset value .................. $ 17,091,826 $ 1,694,339 $ 1,106,735
Accrued transfers from (to) depositor - net ...... 768 7,257 (14,401)
------------------ ---------------- --------------
Total assets .................................... 17,092,594 1,701,596 1,092,334
------------------ ---------------- --------------
LIABILITIES: ....................................... 1,261 125 82
------------------ ---------------- --------------
Total net assets ................................. $ 17,091,333 $ 1,701,471 $ 1,092,252
================== ================ ==============
EQUITY ACCOUNTS:
Policy Owners' equity:
Units .......................................... 1,330,684.192692 150,650.111025 95,405.337127
================== ================ ==============
Unit value ....................................... $ 12.844019 $ 11.294193 $ 11.448542
================== ================ ==============
Policy Owners' equity ........................... $ 17,091,333 $ 1,701,471 $ 1,092,252
------------------ ---------------- --------------
Depositor's equity:
Units .......................................... N/A N/A N/A
================== ================ ==============
Unit value ....................................... $ N/A $ N/A $ N/A
================== ================ ==============
Depositor's equity .............................. $ N/A $ N/A $ N/A
------------------ ---------------- --------------
Total equity .................................... $ 17,091,333 $ 1,701,471 $ 1,092,252
================== ================ ==============
</TABLE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF OPERATIONS
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL U.S.
VALUE EQUITY EQUITY EQUITY
SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT (A)
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income ............................................. $ 7,477 $ 0 $ 0
Capital gain distributions ................................. 0 0 0
----------------- --------------- --------------
7,477 0 0
EXPENSES:
Mortality and expense risk ................................. 55,007 4,701 2,123
----------------- --------------- --------------
Net investment income (loss) .............................. (47,530) (4,701) (2,123)
----------------- --------------- --------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions ...... 118,234 19,297 (1,822)
Change in unrealized appreciation (depreciation) ............ 1,608,176 138,934 64,047
----------------- --------------- --------------
Net gain (loss) on investments ........................... 1,726,410 158,231 62,225
----------------- --------------- --------------
Net increase (decrease) in equity accounts resulting
from operations .......................................... $ 1,678,880 $ 153,530 $ 60,102
================= =============== ==============
</TABLE>
(a) The inception date of this sub-account was January 2, 1997.
The notes to the financial statements are an integral part of this report.
4
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
SUB-ACCOUNT SUB-ACCOUNT
June 30 December 31 June 30 December 31
1997 1996 1997 1996
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 303,593 $ 491,185 $ 82,152 $ 553,012
Net gain (loss) on investments ............... 0 0 100,983 (613,958)
------------- ------------- ------------- ------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 303,593 491,185 183,135 (60,946)
------------- ------------- ------------- ------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ......... 4,625,453 5,217,298 1,919,316 3,451,573
------------- ------------- ------------- ------------
Less cost of units redeemed:
Administrative charges ..................... 1,524,150 2,639,279 782,223 1,314,254
Policy loans ................................. 372,496 285,757 107,532 191,268
Surrender benefits ........................... 410,543 776,305 173,345 338,599
Death benefits .............................. 8,428 25,737 518 28,090
------------- ------------- ------------- ------------
2,315,617 3,727,078 1,063,618 1,872,211
------------- ------------- ------------- ------------
Increase (decrease) in equity accounts
from capital unit transactions ............... 2,309,836 1,490,220 855,698 1,579,362
------------- ------------- ------------- ------------
Net increase (decrease) in equity accounts 2,613,429 1,981,405 1,038,833 1,518,416
Depositor's equity contribution (redemption) . 0 0 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 12,740,029 10,758,624 11,584,548 10,066,132
------------- ------------- ------------- ------------
End of period ................................. $ 15,353,458 $ 12,740,029 $ 12,623,381 $ 11,584,548
============= ============= ============= ============
<CAPTION>
GROWTH
SUB-ACCOUNT
June 30 December 31
1997 1996
------------------------ --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 1,636,585 $ 19,310,499
Net gain (loss) on investments ............... 37,987,636 26,918,660
-------------- --------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 39,624,22 46,229,159
-------------- --------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ......... 48,043,861 91,555,979
-------------- --------------
Less cost of units redeemed:
Administrative charges ..................... 17,583,074 29,331,415
Policy loans ................................. 4,567,098 8,442,970
Surrender benefits ........................... 6,769,462 12,385,662
Death benefits .............................. 232,668 600,920
-------------- --------------
29,152,302 50,760,967
-------------- --------------
Increase (decrease) in equity accounts
from capital unit transactions ............... 18,891,559 40,795,012
-------------- --------------
Net increase (decrease) in equity accounts 58,515,780 87,024,171
Depositor's equity contribution (redemption) . 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 349,491,276 262,467,105
-------------- --------------
End of period ................................. $ 408,007,056 $ 349,491,276
============== ==============
</TABLE>
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING GROWTH
SUB-ACCOUNT
June 30 December 31
1997 1996
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 237,032 $ 3,934,952
Net gain (loss) on investments .................. 9,693,575 9,284,053
-------------- --------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 9,930,607 13,219,005
-------------- --------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 24,101,641 40,944,477
-------------- --------------
Less cost of units redeemed:
Administrative charges ........................ 6,567,394 9,201,102
Policy loans ................................. 1,357,162 2,095,860
Surrender benefits ........................... 1,714,521 2,754,328
Death benefits ................................. 86,525 91,972
-------------- --------------
9,725,602 14,143,262
-------------- --------------
Increase (decrease) in equity accounts
from capital unit transactions ............... 14,376,039 26,801,215
-------------- --------------
Net increase (decrease) in equity accounts 24,306,646 40,020,220
Depositor's equity contribution (redemption) ... 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 107,925,173 67,904,953
-------------- --------------
End of period ................................. $ 132,231,819 $ 107,925,173
============== ==============
<CAPTION>
AGGRESSIVE GROWTH BALANCED
SUB-ACCOUNT SUB-ACCOUNT
June 30 December 31 June 30 December 31
1997 1996 1997 1996
-------------- -------------- ------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 183,732 $ 1,138,792 $ 64,314 $ 153,790
Net gain (loss) on investments .................. 8,562,981 2,797,147 461,109 341,121
------------- ------------- ------------ -----------
Net increase (decrease) in equity accounts
resulting from operations ..................... 8,746,713 3,935,939 525,423 494,911
------------- ------------- ------------ -----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 17,564,575 26,224,213 1,927,337 3,089,782
------------- ------------- ------------ -----------
Less cost of units redeemed:
Administrative charges ........................ 4,437,168 6,412,799 422,818 575,594
Policy loans ................................. 665,782 863,340 66,762 77,586
Surrender benefits ........................... 936,921 1,349,932 50,707 84,857
Death benefits ................................. 11,117 29,810 923 3,961
------------- ------------- ------------ -----------
6,050,988 8,655,881 541,210 741,998
------------- ------------- ------------ -----------
Increase (decrease) in equity accounts
from capital unit transactions ............... 11,513,587 17,568,332 1,386,127 2,347,784
------------- ------------- ------------ -----------
Net increase (decrease) in equity accounts 20,260,300 21,504,271 1,911,550 2,842,695
Depositor's equity contribution (redemption) ... 0 0 0 (220,175)
EQUITY ACCOUNTS:
Beginning of period ........................... 54,408,240 32,903,969 6,417,914 3,795,394
------------- ------------- ------------ -----------
End of period ................................. $ 74,668,540 $ 54,408,240 $ 8,329,464 $ 6,417,914
============= ============= ============ ===========
</TABLE>
The notes to the financial statements are an integral part of this report.
5
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TO-INTERMEDIATE
GOVERNMENT
SUB-ACCOUNT
June 30 December 31
1997 1996
------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 14,630 $ 67,973
Net gain (loss) on investments ............... 21,752 (29,048)
------------ -----------
Net increase (decrease) in equity accounts
resulting from operations .................... 36,382 38,925
------------ -----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ......... 310,895 442,872
------------ -----------
Less cost of units redeemed:
Administrative charges ..................... 95,113 178,533
Policy loans ................................. 15,625 33,708
Surrender benefits ........................... 41,335 77,704
Death benefits .............................. 43 0
------------ -----------
152,116 289,945
------------ -----------
Increase (decrease) in equity accounts
from capital unit transactions .............. 158,779 152,927
------------ -----------
Net increase (decrease) in equity accounts 195,161 191,852
Depositor's equity contribution (redemption) . 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 1,709,837 1,517,985
------------ -----------
End of period ................................. $ 1,904,998 $ 1,709,837
============ ===========
<CAPTION>
STRATEGIC
GLOBAL TOTAL RETURN
SUB-ACCOUNT SUB-ACCOUNT (A)
June 30 December 31 June 30 December 31
1997 1996 1997 1996
--------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 1,271,116 $ 6,524,214 $ (10,530) $ 2,645,668
Net gain (loss) on investments ............... 14,502,371 6,374,264 7,871,561 3,635,535
-------------- ------------ ------------ -------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 15,773,487 12,898,478 7,861,031 6,281,203
-------------- ------------ ------------ -------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ......... 30,693,994 43,696,555 10,220,421 16,832,424
-------------- ------------ ------------ -------------
Less cost of units redeemed:
Administrative charges ..................... 5,298,208 6,463,101 2,790,653 4,528,541
Policy loans ................................. 1,228,831 1,465,510 563,679 920,628
Surrender benefits ........................... 1,478,194 2,225,874 907,892 1,300,527
Death benefits .............................. 62,402 62,009 72,762 112,479
-------------- ------------ ------------ -------------
8,067,635 10,216,494 4,334,986 6,862,175
-------------- ------------ ------------ -------------
Increase (decrease) in equity accounts
from capital unit transactions .............. 22,626,359 33,480,061 5,885,435 9,970,249
-------------- ------------ ------------ -------------
Net increase (decrease) in equity accounts 38,399,846 46,378,539 13,746,466 16,251,452
Depositor's equity contribution (redemption) . 0 (268,153) 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 83,159,083 37,048,697 55,899,727 39,648,275
-------------- ------------ ------------ -------------
End of period ................................. $ 121,558,929 $ 83,159,083 $ 69,646,193 $ 55,899,727
============== ============ ============ =============
</TABLE>
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & INCOME
SUB-ACCOUNT (B)
June 30 December 31
1997 1996
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ..................... $ 68,108 $ 245,624
Net gain (loss) on investments .................. 414,481 210,007
------------ -----------
Net increase (decrease) in equity accounts
resulting from operations ....................... 482,589 455,631
------------ -----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 1,027,032 3,245,136
------------ -----------
Less cost of units redeemed:
Administrative charges ........................ 323,001 439,973
Policy loans .................................... 70,385 72,641
Surrender benefits .............................. 156,592 82,531
Death benefits ................................. 3,338 3,350
------------ -----------
553,316 598,495
------------ -----------
Increase (decrease) in equity accounts
from capital unit transactions .................. 473,716 2,646,641
------------ -----------
Net increase (decrease) in equity accounts ....... 956,305 3,102,272
Depositor's equity contribution (redemption) .... 0 (232,644)
EQUITY ACCOUNTS:
Beginning of period .............................. 5,500,710 2,631,082
------------ -----------
End of period .................................... $ 6,457,015 $ 5,500,710
============ ===========
<CAPTION>
TACTICAL ASSET ALLOCATION C.A.S.E. GROWTH
SUB-ACCOUNT SUB-ACCOUNT
June 30 December 31 June 30 December 31
1997 1996 1997 1996 (c)
-------------- -------------- -------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ..................... $ 105,749 $ 584,042 $ 13,078 $ 70,246
Net gain (loss) on investments .................. 1,512,749 1,178,927 308,203 227,803
------------- ------------- ----------- ------------
Net increase (decrease) in equity accounts
resulting from operations ....................... 1,618,498 1,762,969 321,281 298,049
------------- ------------- ----------- ------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 4,977,513 9,061,824 2,535,296 4,302,715
------------- ------------- ----------- ------------
Less cost of units redeemed:
Administrative charges ........................ 948,536 1,134,737 343,148 140,145
Policy loans .................................... 214,005 306,304 65,231 7,028
Surrender benefits .............................. 336,595 865,689 100,319 12,276
Death benefits ................................. 38,499 18,086 0 0
------------- ------------- ----------- ------------
1,537,635 2,324,816 508,698 159,449
------------- ------------- ----------- ------------
Increase (decrease) in equity accounts
from capital unit transactions ................. 3,439,878 6,737,008 2,026,598 4,143,266
------------- ------------- ----------- ------------
Net increase (decrease) in equity accounts ....... 5,058,376 8,499,977 2,347,879 4,441,315
Depositor's equity contribution (redemption) ... 0 0 (24,946) 25,000
EQUITY ACCOUNTS:
Beginning of period .............................. 17,945,834 9,445,857 4,466,315 0
------------- ------------- ----------- ------------
End of period .................................... $ 23,004,210 $ 17,945,834 $ 6,789,248 $ 4,466,315
============= ============= =========== ============
</TABLE>
(a) Prior to May 1, 1997, this sub-account was known as Equity-Income.
(b) Prior to May 1, 1997, this sub-account was known as Utility.
(c) The inception date of this sub-account was May 1, 1996.
The notes to the financial statements are an integral part of this report.
6
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE EQUITY
SUB-ACCOUNT
June 30 December 31
1997 1996 (a)
-------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ..................... $ (47,530) $ 18,724
Net gain (loss) on investments ..................... 1,726,410 603,734
------------ ------------
Net increase (decrease) in equity accounts
resulting from operations ........................ 1,678,880 622,458
------------ ------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............... 7,456,963 8,292,350
------------ ------------
Less cost of units redeemed:
Administrative charges ........................... 404,652 152,948
Policy loans .................................... 132,931 36,190
Surrender benefits .............................. 164,294 38,448
Death benefits .................................... 233 0
------------ ------------
702,110 227,586
------------ ------------
Increase (decrease) in equity accounts
from capital unit transactions .................. 6,754,853 8,064,764
------------ ------------
Net increase (decrease) in equity accounts ...... 8,433,733 8,687,222
Depositor's equity contribution (redemption) ...... (229,622) 200,000
EQUITY ACCOUNTS:
Beginning of period .............................. 8,887,222 0
------------ ------------
End of period .................................... $ 17,091,333 $ 8,887,222
============ ============
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL U.S.
EQUITY EQUITY
SUB-ACCOUNT SUB-ACCOUNT
June 30 June 30
1997 (b) 1997 (b)
--------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ..................... $ (4,701) $ (2,123)
Net gain (loss) on investments ..................... 158,231 62,225
----------- -----------
Net increase (decrease) in equity accounts
resulting from operations ........................ 153,530 60,102
----------- -----------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............... 1,601,489 1,060,148
----------- -----------
Less cost of units redeemed:
Administrative charges ........................... 22,986 11,296
Policy loans .................................... 21,526 18,441
Surrender benefits .............................. 2,737 771
Death benefits .................................... 0 0
----------- -----------
47,249 30,508
----------- -----------
Increase (decrease) in equity accounts
from capital unit transactions .................. 1,554,240 1,029,640
----------- -----------
Net increase (decrease) in equity accounts ...... 1,707,770 1,089,742
Depositor's equity contribution (redemption) ...... (6,299) 2,510
EQUITY ACCOUNTS:
Beginning of period .............................. 0 0
----------- -----------
End of period .................................... $ 1,701,471 $ 1,092,252
=========== ===========
</TABLE>
(a) The inception date of this sub-account was May 1, 1996.
(b) The inception date of this sub-account was January 2, 1997.
The notes to the financial statements are an integral part of this report.
7
<PAGE>
WRL SERIES LIFE ACCOUNT
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET SUB-ACCOUNT
December 31
June 30 -------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
------------ ------------ ------------- ------------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 15.45 $ 14.83 $ 14.19 $ 13.84 $ 13.63 $ 13.33
Income from operations:
Net investment income (loss) ............... 0.33 0.62 0.64 0.35 0.21 0.30
Net realized and unrealized gain (loss)
on investments ............................. 0.00 0.00 0.00 0.00 0.00 0.00
-------- -------- ---------- ---------- ----------- ----------
Total income (loss) from operations ...... 0.33 0.62 0.64 0.35 0.21 0.30
-------- -------- ---------- ---------- ----------- ----------
Accumulation unit value, end of period ...... $ 15.78 $ 15.45 $ 14.83 $ 14.19 $ 13.84 $13.63
======== ======== ========== ========== =========== ==========
Total return (a) .............................. 2.11% 4.17% 4.49% 2.58% 1.52% 2.24%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 15,353 $ 12,740 $ 10,759 $ 9,706 $ 4,985 $4,619
Ratios of net investment income (loss)
to average net assets (b) .................. 4.17% 4.07% 4.37% 2.66% 1.51% 2.12%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOND SUB-ACCOUNT
December 31
June 30 ------------------------
1997 1996 1995
------------ ----------- ------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 19.53 $ 19.67 $ 16.14
Income from operations:
Net investment income (loss) ............... 0.13 0.99 1.05
Net realized and unrealized gain (loss)
on investments ............................. 0.15 (1.13) 2.48
-------- ----------- ------------
Total income (loss) from operations ...... 0.28 (0.14) 3.53
-------- ----------- ------------
Accumulation unit value, end of period ...... $ 19.81 $ 19.53 $ 19.67
======== =========== ============
Total return (a) .............................. 1.44% (0.75%) 21.89%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 12,623 $ 11,585 $ 10,066
Ratios of net investment income (loss)
to average net assets (b) .................. 1.37% 5.34% 5.80%
<CAPTION>
1994 1993 1992
------------ ------------- ------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 17.50 $ 15.57 $ 14.68
Income from operations:
Net investment income (loss) ............... 0.89 2.11 1.00
Net realized and unrealized gain (loss)
on investments .............................. (2.25) (0.18) (0.11)
------------ ------------- ------------
Total income (loss) from operations ...... (1.36) 1.93 0.89
------------ ------------- ------------
Accumulation unit value, end of period ...... $ 16.14 $ 17.50 $ 15.57
============ ============= ============
Total return (a) .............................. (7.77%) 12.40% 6.08%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 6,259 $ 6,985 $ 4,558
Ratios of net investment income (loss)
to average net assets (b) .................. 5.57% 12.92% 6.69%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH SUB-ACCOUNT
December 31
June 30 ---------------------------
1997 1996 1995
------------- ------------- -------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 48.48 $ 41.47 $ 28.44
Income from operations:
Net investment income (loss) ............... 0.22 2.88 3.89
Net realized and unrealized gain (loss)
on investments ............................. 5.12 4.13 9.14
--------- --------- -----------
Total income (loss) from operations ...... 5.34 7.01 13.03
--------- --------- -----------
Accumulation unit value, end of period ...... $ 53.82 $ 48.48 $ 41.47
========= ========= ===========
Total return (a) .............................. 11.01% 16.91% 45.81%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 408,007 $ 349,491 $ 262,467
Ratios of net investment income (loss)
to average net assets (b) .................. 0.89% 6.41% 11.05%
<CAPTION>
1994 1993 1992
-------------- ------------- -------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 31.30 $ 30.37 $ 29.95
Income from operations:
Net investment income (loss) ............... 0.04 0.46 1.09
Net realized and unrealized gain (loss)
on investments ............................. (2.90) 0.47 (0.67)
------------- ------------ -----------
Total income (loss) from operations ...... (2.86) 0.93 0.42
------------- ------------ -----------
Accumulation unit value, end of period ...... $ 28.44 $ 31.30 $ 30.37
============= ============ ===========
Total return (a) .............................. (9.13%) 3.06% 1.41%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 161,490 $ 169,757 $ 146,053
Ratios of net investment income (loss)
to average net assets (b) .................. 0.16% 1.56% 3.84%
</TABLE>
The notes to the financial statements are an integral part of this report.
8
<PAGE>
WRL SERIES LIFE ACCOUNT
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TO-INTERMEDIATE
GOVERNMENT SUB-ACCOUNT
December 31
June 30 -------------------------
1997 1996 1995
----------- ----------- -------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 11.85 $ 11.55 $ 10.27
Income from operations:
Net investment income (loss) ............... 0.10 0.51 0.61
Net realized and unrealized gain (loss)
on investments ............................. 0.14 (0.21) 0.67
------- --------- ------------
Total income (loss) from operations ...... 0.24 0.30 1.28
------- --------- ------------
Accumulation unit value, end of period ...... $ 12.09 $ 11.85 $ 11.55
======= ========= ============
Total return (a) .............................. 2.06% 2.56% 12.53%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 1,905 $ 1,710 $ 1,517
Ratios of net investment income (loss)
to average net assets (b) .................. 1.65% 4.53% 5.53%
<CAPTION>
1994 1993 1992 (c)
-------------- ------------- -------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 10.40 $ 10.04 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.40 0.14 0.01
Net realized and unrealized gain (loss)
on investments ............................. (0.53) 0.22 0.03
-------------- ----------- ------------
Total income (loss) from operations ...... (0.13) 0.36 0.04
-------------- ----------- ------------
Accumulation unit value, end of period ...... $ 10.27 $ 10.40 $ 10.04
============== =========== ============
Total return (a) .............................. (1.32%) 3.64% 0.38%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 945 $ 1,408 $ 803
Ratios of net investment income (loss)
to average net assets (b) .................. 4.06% 1.39% 1.92%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL SUB-ACCOUNT
December 31
June 30 ---------------------------------------
1997 1996 1995 1994 (e)
------------- ----------- ------------- -------------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 15.13 $ 11.95 $ 9.80 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.20 1.50 0.45 0.71
Net realized and unrealized gain (loss)
on investments ............................. 2.29 1.68 1.70 (0.91)
--------- ------- ---------- -------------
Total income (loss) from operations ...... 2.49 3.18 2.15 (0.20)
--------- ------- ---------- -------------
Accumulation unit value, end of period ...... $ 17.62 $ 15.13 $ 11.95 $ 9.80
========= ======= ========== =============
Total return (a) .............................. 16.46% 26.60% 21.96% (2.02%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 121,559 $83,159 $ 37,049 $ 21,672
Ratios of net investment income (loss)
to average net assets (b) .................. 2.53% 11.09% 4.25% 8.86%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC TOTAL RETURN (I)
SUB-ACCOUNT
December 31
June 30 -------------------------------------------------------
1997 1996 1995 1994 1993 (d)
----------- ----------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 15.66 $ 13.74 $ 11.12 $ 11.28 $ 10.00
Income from operations:
Net investment income (loss) ............... (0.01) 0.82 0.68 0.18 0.19
Net realized and unrealized gain (loss)
on investments .............................. 2.08 1.10 1.94 (0.34) 1.09
---------- ------- ----------- ------------- -----------
Total income (loss) from operations ...... 2.07 1.92 2.62 (0.16) 1.28
---------- ------- ----------- ------------- -----------
Accumulation unit value, end of period ...... $ 17.73 $ 15.66 $ 13.74 $ 11.12 $ 11.28
========== ======= =========== ============= ===========
Total return (a) .............................. 13.25% 13.97% 23.55% (1.42%) 12.81%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 69,646 $55,900 $ 39,648 $ 23,649 $ 13,343
Ratios of net investment income (loss)
to average net assets (b) .................. (0.03%) 5.76% 5.47% 1.93% 2.27%
</TABLE>
The notes to the financial statements are an integral part of this report.
9
<PAGE>
WRL SERIES LIFE ACCOUNT
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING GROWTH SUB-ACCOUNT
December 31
June 30 ----------------------------------------------------------
1997 1996 1995 1994 1993 (d)
------------- ------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 19.51 $ 16.56 $ 11.38 $ 12.40 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.04 0.82 0.65 (0.09) (0.09)
Net realized and unrealized gain (loss)
on investments ............................. 1.55 2.13 4.53 (0.93) 2.49
--------- --------- ------------ -------------- --------------
Total income (loss) from operations ...... 1.59 2.95 5.18 (1.02) 2.40
--------- --------- ------------ -------------- --------------
Accumulation unit value, end of period ...... $ 21.10 $ 19.51 $ 16.56 $ 11.38 $ 12.40
========= ========= ============ ============== ==============
Total return (a) .............................. 8.14% 17.82% 45.49% (8.18%) 23.96%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 132,232 $ 107,925 $ 67,905 $ 36,687 $ 18,620
Ratios of net investment income (loss)
to average net assets (b) .................. 0.41% 4.51% 4.66% (0.86%) (0.92%)
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH SUB-ACCOUNT
December 31
June 30 ------------------------------------------
1997 1996 1995 1994 (e)
----------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 14.70 $ 13.43 $ 9.82 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.04 0.36 0.37 (0.06)
Net realized and unrealized gain (loss)
on investments ............................. 2.06 0.91 3.24 (0.12)
------- --------- ---------- -------------
Total income (loss) from operations ...... 2.10 1.27 3.61 (0.18)
------- --------- ---------- -------------
Accumulation unit value, end of period ...... $ 16.80 $ 14.70 $ 13.43 $ 9.82
======= ========= ========== =============
Total return (a) .............................. 14.33% 9.46% 36.79% (1.85%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $74,669 $ 54,408 $ 32,904 $ 8,909
Ratios of net investment income (loss)
to average net assets (b) .................. 0.58% 2.65% 2.93% (0.72%)
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED SUB-ACCOUNT
December 31
June 30 ----------------------------------------
1997 1996 1995 1994 (e)
----------- ----------- ------------- --------------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 12.21 $ 11.13 $ 9.37 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.11 0.36 0.37 0.22
Net realized and unrealized gain (loss)
on investments .............................. 0.79 0.72 1.39 (0.85)
------- ------- ---------- -------------
Total income (loss) from operations ...... 0.90 1.08 1.76 (0.63)
------- ------- ---------- -------------
Accumulation unit value, end of period ...... $ 13.11 $ 12.21 $ 11.13 $ 9.37
======= ======= ========== =============
Total return (a) .............................. 7.37% 9.73% 18.73% (6.29%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 8,329 $ 6,418 $ 3,795 $ 2,145
Ratios of net investment income (loss)
to average net assets (b) .................. 1.74% 3.18% 3.59% 3.06%
</TABLE>
The notes to the financial statements are an integral part of this report.
10
<PAGE>
WRL SERIES LIFE ACCOUNT
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & INCOME SUB-ACCOUNT (J)
December 31
June 30 ----------------------------------------
1997 1996 1995 1994 (e)
----------- ----------- ------------- --------------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 13.03 $ 11.77 $ 9.49 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.17 0.76 0.49 0.29
Net realized and unrealized gain (loss)
on investments ............................. 0.93 0.50 1.79 (0.80)
------- ------- ---------- -------------
Total income (loss) from operations ...... 1.10 1.26 2.28 0.51)
------- ------- ---------- -------------
Accumulation unit value, end of period ...... $ 14.13 $ 13.03 $ 11.77 $ 9.49
======= ======= ========== =============
Total return (a) .............................. 8.45% 10.64% 24.14% (5.15%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 6,457 $ 5,501 $ 2,631 $ 1,215
Ratios of net investment income (loss)
to average net assets (b) .................. 2.36% 6.38% 4.57% 3.71%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TACTICAL ASSET
ALLOCATION SUB-ACCOUNT
December 31
June 30 -------------------------
1997 1996 1995 (f)
------------ ----------- -------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 13.50 $ 11.90 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.07 0.53 0.61
Net realized and unrealized gain (loss)
on investments ............................. 1.01 1.07 1.29
-------- ------- -----------
Total income (loss) from operations ...... 1.08 1.60 1.90
-------- ------- -----------
Accumulation unit value, end of period ...... $ 14.58 $ 13.50 $ 11.90
======== ======= ===========
Total return (a) .............................. 8.05% 13.40% 19.03%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 23,004 $17,946 $ 9,446
Ratios of net investment income (loss)
to average net assets (b) .................. 1.03% 4.35% 5.47%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
C.A.S.E. GROWTH
SUB-ACCOUNT
June 30 December 31
1997 1996 (g)
------------ ------------
<S> <C> <C>
Accumulation unit value, beginning of period $ 10.81 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.02 0.37
Net realized and unrealized gain (loss)
on investments ............................. 0.49 0.44
-------- -------
Total income (loss) from operations ...... 0.51 0.81
-------- -------
Accumulation unit value, end of period ...... $ 11.32 $ 10.81
======== =======
Total return (a) .............................. 4.72% 8.09%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 6,789 $ 4,466
Ratios of net investment income (loss)
to average net assets (b) .................. 0.46% 6.11%
</TABLE>
The notes to the financial statements are an integral part of this report.
11
<PAGE>
WRL SERIES LIFE ACCOUNT
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE EQUITY
SUB-ACCOUNT
June 30 December 31
1997 1996 (g)
------------ ------------
<S> <C> <C>
Accumulation unit value, beginning of period $ 11.25 $ 10.00
Income from operations:
Net investment income (loss) ............... (0.05) 0.05
Net realized and unrealized gain (loss)
on investments ............................. 1.64 1.20
---------- --------
Total income (loss) from operations ...... 1.59 1.25
---------- --------
Accumulation unit value, end of period ...... $ 12.84 $ 11.25
========== ========
Total return (a) .............................. 14.16% 12.51%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 17,091 $ 8,887
Ratios of net investment income (loss)
to average net assets (b) .................. (0.76%) 0.77%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT
June 30 June 30
1997 (h) 1997 (h)
-------------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period $ 10.00 $ 10.00
Income from operations:
Net investment income (loss) ............... (0.05) (0.05)
Net realized and unrealized gain (loss)
on investments ............................. 1.34 1.50
---------- ----------
Total income (loss) from operations ...... 1.29 1.45
---------- ----------
Accumulation unit value, end of period ...... $ 11.29 $ 11.45
========== ==========
Total return (a) .............................. 12.94% 14.49%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 1,701 $ 1,092
Ratios of net investment income (loss)
to average net assets (b) ............... ... (0.88%) (0.88%)
</TABLE>
NOTES TO SELECTED PER UNIT DATA AND RATIOS
* The above tables illustrate the change for a unit outstanding computed using
average units outstanding throughout each period.
(a) For periods less than one year, the total return is not annualized.
(b) For periods less than one year, the ratio of net investment income to
average net assets is annualized.
(c) The inception date of this sub-account was December 3, 1992.
(d) The inception date of this sub-account was March 1, 1993.
(e) The inception date of this sub-account was March 1, 1994.
(f) The inception date of this sub-account was January 3, 1995.
(g) The inception date of this sub-account was May 1, 1996.
(h) The inception date of this sub-account was January 2, 1997.
(i) Prior to May 1, 1997, this sub-account was known as Equity-Income.
(j) Prior to May 1, 1997, this sub-account was known as Utility.
The notes to the financial statements are an integral part of this report.
12
<PAGE>
WRL SERIES LIFE ACCOUNT
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED)
- --------------------------------------------------------------------------------
June 30, 1997
NOTE 1 -- ORGANIZATION AND SUMMARY
OF SIGNIFICANT ACCOUNTING
POLICIES
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 fifteen
investment options referred to as Sub-Accounts. Each Sub-Account invests in the
corresponding Portfolio (the "Portfolios") of the WRL Series Fund, Inc. (the
"Fund"), a registered management investment company under the Investment Company
Act of 1940, as amended. These Portfolios and their respective investment
management organizations are as follows:
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT MANAGER
- ----------------------- -------------------------------
<S> <C>
Money Market J.P. Morgan Investment
Management Inc.
Bond Janus Capital Corporation
("JCC")
Growth JCC
Short-to-Intermediate AEGON USA Investment
Government Management, Inc. ("AIMI")
Global JCC
Strategic Total Luther King Capital
Return Management Corporation
Emerging Growth Van Kampen American Capital
Asset Management, Inc.
Aggressive Growth Fred Alger Management, Inc.
Balanced AIMI
Growth & Income 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.
International Equity Scottish Equitable Investment
Management, Ltd. and GE
Investment Management,
Incorporated
U.S. Equity GE Investment Management,
Incorporated
</TABLE>
WRL and AIMI are indirect wholly-owned subsidiaries of AEGON USA, Inc.,
which, along with Scottish Equitable Investment Management, Ltd. are indirect
wholly-owned subsidiaries of AEGON nv, a Netherlands corporation.
On January 2, 1997, WRL made an initial contribution of $ 400,000 to the
International Equity sub-account, for which WRL received 40,000.000000 units. On
April 28, 1997, WRL redeemed the initial contribution in the International
Equity sub-account, for $ 406,299.
On January 2, 1997, WRL made an initial contribution of $ 200,000 to the
U.S. Equity sub-account, for which WRL received 20,000.000000 units. On April
28, 1997, WRL redeemed the initial contribution in the U.S. Equity sub-account,
for $ 197,490.
The Life Account holds assets to support the benefits under flexible
premium variable universal life insurance policies (the "Policies") issued by
WRL, which issued the first of such Policies on October 3, 1986. The Life
Account's equity transactions are accounted for using the appropriate effective
date at the corresponding accumulation unit value.
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
The following significant accounting policies, which are in conformity with
generally accepted accounting principles for unit investment trusts, have been
consistently used in preparation of the Trust's financial statements.
A. VALUATION OF INVESTMENTS
The investments in the Fund's shares are stated at the closing net asset
value ("NAV") per share as determined by the Fund on June 30, 1997.
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.
13
<PAGE>
WRL SERIES LIFE ACCOUNT
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1 (CONTINUED)
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, a sales charge and premium taxes are
deducted by WRL prior to allocation of policyowner payments to the Sub-
Accounts. Thereafter, monthly administrative and cost of insurance charges
are deducted from the Sub-Accounts. Contingent surrender charges also
apply.
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 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 typically declared
and reinvested semi-annually, while capital gain distributions are typically
declared and reinvested annually. Dividends and distributions of the Fund are
generally paid to and reinvested by the Life Account the next business day after
declaration.
NOTE 4 -- OTHER MATTERS
As of June 30, 1997, the equity accounts include net unrealized
appreciation (depreciation) on investments as follows:
<TABLE>
<CAPTION>
SUB-ACCOUNT
- ----------------------------------
<S> <C>
Money Market $ N/A
Bond (2,140)
Growth 116,116,206
Short-to-Intermediate Government 1,934
Global 23,338,057
Strategic Total Return 15,377,493
Emerging Growth 31,536,393
Aggressive Growth 11,823,013
Balanced 982,915
Growth & Income 670,838
Tactical Asset Allocation 2,779,419
C.A.S.E Growth 519,078
Value Equity 2,141,521
International Equity 138,934
U.S. Equity 64,047
</TABLE>
14
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<PAGE>
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<PAGE>
- --------------------------------------------------------------------------------
W R L S E R I E S L I F E A C C O U N T
- --------------------------------------------------------------------------------
OFFICE OF THE WRL SERIES LIFE ACCOUNT
201 Highland Avenue
Largo, FL 33770-2597
1-800-851-9777
---------------------------
DISTRIBUTOR:
InterSecurities, Inc.
201 Highland Avenue
Largo, FL 33770-2597
---------------------------
INSURER:
Western Reserve Life Assurance Co. of Ohio
201 Highland Avenue
Largo, FL 33770-2597
---------------------------
INDEPENDENT ACCOUNTANTS:
Price Waterhouse LLP
1055 Broadway
Kansas City, MO 64105
<PAGE>
THIS MATERIAL IS FOR POLICYHOLDER'S
REPORTING PURPOSES ONLY AND SHALL NOT BE
USED IN CONNECTION WITH A SOLICITATION,
OFFER OR ANY PROPOSED SALE OR PURCHASE
OF SECURITIES. THIS MATERIAL MUST BE
PRECEDED OR ACCOMPANIED BY A PROSPECTUS.
[GRAPHIC OMITTED]
--------------------------------------------------
Western Reserve Life Assurance Co. of Ohio
Distributor: InterSecurities, Inc.
201 Highland Avenue /bullet/ Largo, Florida 33770-2597
August 1997
ACC00003 (8/97)
