WRL Series Life Account
Semi-Annual Report
June 30,1998
Westerm Reserve Life Assurance
Co. of Ohio
August 1998
ACC00003 (8/98)
<PAGE>
TABLE OF CONTENTS
WRL SERIES LIFE ACCOUNT Page
Statement of Assets and Liabilities........................ 1
Statement of Operations.................................... 4
Statement of Changes in Net Assets......................... 7
Selected Per Unit Data and Ratios.......................... 10
Notes to Financial Statements.............................. 16
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
At June 30, 1998
All amounts (except unit value) in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------- ------------- --------------
<S> <C> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 20,276 1,867 12,676
=========== =========== ========
Cost ............................................... $ 20,276 $ 20,873 $ 385,566
=========== =========== ===========
Investment, at net asset value ...................... $ 20,276 $ 21,598 $ 629,006
Transfers receivable from depositor ................. 216 0 615
----------- ----------- -----------
Total assets ....................................... 20,492 21,598 629,621
----------- ----------- -----------
LIABILITIES:
Accrued expenses. ................................... 1 1 16
Transfers payable to depositor ...................... 0 418 0
----------- ----------- -----------
Total liabilities .................................. 1 419 16
----------- ----------- -----------
Net assets ......................................... $ 20,491 $ 21,179 $ 629,605
=========== =========== ===========
NET ASSETS:
Policy Owners' equity:
Units .............................................. 1,243.6 968.5 8,230.8
=========== =========== ===========
Unit value ......................................... $ 16.48 $ 21.87 $ 76.49
=========== =========== ===========
Policy Owners' equity .............................. $ 20,491 $ 21,179 $ 629,605
----------- ----------- -----------
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
----------- ----------- -----------
Net assets applicable to outstanding units ......... $ 20,491 $ 21,179 $ 629,605
=========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC EMERGING
GLOBAL TOTAL RETURN GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- -------------- --------------
<S> <C> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 8,512 5,619 8,687
=========== ========== =======
Cost ............................................... $ 157,892 $ 74,663 $ 148,852
=========== ========== ===========
Investment, at net asset value ...................... $ 207,745 $ 92,699 $ 216,314
Transfers receivable from depositor ................. 0 21 55
----------- ---------- -----------
Total assets ....................................... 207,745 92,720 216,369
----------- ---------- -----------
LIABILITIES:
Accrued expenses .................................... 5 2 5
Transfers payable to depositor ...................... 1 0 0
----------- ---------- -----------
Total liabilities .................................. 6 2 5
----------- ---------- -----------
Net assets ......................................... $ 207,739 $ 92,718 $ 216,364
=========== ========== ===========
NET ASSETS:
Policy Owners' equity:
Units .............................................. 9,091.9 4,619.9 7,555.8
=========== ========== ===========
Unit value ......................................... $ 22.85 $ 20.07 $ 28.64
=========== ========== ===========
Policy Owners' equity .............................. $ 207,739 $ 92,718 $ 216,364
----------- ---------- -----------
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
----------- ---------- -----------
Net assets applicable to outstanding units ......... $ 207,739 $ 92,718 $ 216,364
=========== ========== ===========
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 1
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
At June 30, 1998
All amounts (except unit value) in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH BALANCED GROWTH & INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------- ------------- -----------------
<S> <C> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 6,766 1,044 1,108
=========== ========== ==========
Cost ............................................... $ 101,986 $ 12,063 $ 13,720
=========== ========== ==========
Investment, at net asset value ...................... $ 135,581 $ 13,003 $ 13,775
Transfers receivable from depositor ................. 89 8 13
----------- ---------- ----------
Total assets ....................................... 135,670 13,011 13,788
----------- ---------- ----------
LIABILITIES:
Accrued expenses .................................... 3 0 0
Transfers payable to depositor ...................... 0 0 0
----------- ---------- ----------
Total liabilities .................................. 3 0 0
----------- ---------- ----------
Net assets ......................................... $ 135,667 $ 13,011 $ 13,788
=========== ========== ==========
NET ASSETS:
Policy Owners' equity:
Units .............................................. 5,911.5 885.4 850.0
=========== ========== ==========
Unit value ......................................... $ 22.95 $ 14.70 $ 16.22
=========== ========== ==========
Policy Owners' equity .............................. $ 135,667 $ 13,011 $ 13,788
----------- ---------- ----------
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
----------- ---------- ----------
Net assets applicable to outstanding units ......... $ 135,667 $ 13,011 $ 13,788
=========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
TACTICAL ASSET
ALLOCATION C.A.S.E. GROWTH VALUE EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------- ----------------- -------------
<S> <C> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 2,550 1,080 2,332
========== ========== ==========
Cost ............................................... $ 32,629 $ 15,659 $ 30,100
========== ========== ==========
Investment, at net asset value ...................... $ 36,303 $ 15,297 $ 34,340
Transfers receivable from depositor ................. 9 28 1
---------- ---------- ----------
Total assets ....................................... 36,312 15,325 34,341
---------- ---------- ----------
LIABILITIES:
Accrued expenses .................................... 1 0 1
Transfers payable to depositor ...................... 0 0 0
---------- ---------- ----------
Total liabilities .................................. 1 0 1
---------- ---------- ----------
Net assets ......................................... $ 36,311 $ 15,325 $ 34,340
========== ========== ==========
NET ASSETS:
Policy Owners' equity:
Units .............................................. 2,182.7 1,196.0 2,329.9
========== ========== ==========
Unit value ......................................... $ 16.64 $ 12.81 $ 14.74
========== ========== ==========
Policy Owners' equity .............................. $ 36,311 $ 15,325 $ 34,340
---------- ---------- ----------
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
---------- ---------- ----------
Net assets applicable to outstanding units ......... $ 36,311 $ 15,325 $ 34,340
========== ========== ==========
</TABLE>
The notes to the financial statements are an integral part of this report.
2 W R L S e r i e s L i f e A c c o u n t
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
At June 30, 1998
All amounts (except unit value) in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL U.S. THIRD AVENUE
EQUITY EQUITY VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (a)
--------------- ------------ ----------------
<S> <C> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 374 594 224
========= ========= =========
Cost ............................................... $ 4,443 $ 7,770 $ 2,276
========= ========= =========
Investment, at net asset value ...................... $ 4,714 $ 8,229 $ 2,144
Transfers receivable from depositor ................. 18 31 1
--------- --------- ---------
Total assets ....................................... 4,732 8,260 2,145
--------- --------- ---------
LIABILITIES:
Accrued expenses .................................... 0 0 0
Transfers payable to depositor ...................... 0 0 0
--------- --------- ---------
Total liabilities .................................. 0 0 0
--------- --------- ---------
Net assets ......................................... $ 4,732 $ 8,260 $ 2,145
========= ========= =========
NET ASSETS:
Policy Owners' equity:
Units .............................................. 378.7 576.4 204.7
========= ========= =========
Unit value ......................................... $ 12.49 $ 14.33 $ 9.55
========= ========= =========
Policy Owners' equity .............................. $ 4,732 $ 8,260 $ 1,954
--------- --------- ---------
Depositor's equity:
Units .............................................. N/A N/A 20.0
========= ========= =========
Unit value ......................................... $ N/A $ N/A $ 9.55
========= ========= =========
Depositor's equity ................................. $ N/A $ N/A $ 191
--------- --------- ---------
Net assets applicable to outstanding units ......... $ 4,732 $ 8,260 $ 2,145
========= ========= =========
REAL ESTATE
SECURITIES
SUB-ACCOUNT (b)
----------------
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 65
========
Cost ............................................... $ 644
========
Investment, at net asset value ...................... $ 638
Transfers receivable from depositor ................. 0
--------
Total assets ....................................... 638
--------
LIABILITIES:
Accrued expenses .................................... 0
Transfers payable to depositor ...................... 0
--------
Total liabilities .................................. 0
--------
Net assets ......................................... $ 638
========
NET ASSETS:
Policy Owners' equity:
Units .............................................. 25.2
========
Unit value ......................................... $ 9.77
========
Policy Owners' equity .............................. $ 247
--------
Depositor's equity:
Units .............................................. 40.0
========
Unit value ......................................... $ 9.77
========
Depositor's equity ................................. $ 391
--------
Net assets applicable to outstanding units ......... $ 638
========
<FN>
- ----------
(a) The inception date of this Sub-Account was January 2, 1998.
(b) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 3
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF OPERATIONS
For the period ended June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $ 483 $ 29 $ 404
Capital gain distributions ............................................ 0 0 5,200
------- ----- --------
Total investment income .............................................. 483 29 5,604
EXPENSES:
Mortality and expense risk ............................................ 82 87 2,374
------- ----- --------
Net investment income (loss) ......................................... 401 (58) 3,230
------- ----- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. 0 323 5,816
Change in unrealized appreciation (depreciation) ...................... 0 394 152,631
------- ----- --------
Net gain (loss) on investment ........................................ 0 717 158,447
------- ----- --------
Net increase (decrease) in equity accounts resulting from operations $ 401 $ 659 $ 161,677
======= ===== =========
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC EMERGING
GLOBAL TOTAL RETURN GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- -------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $ 1,093 $ 237 $ 0
Capital gain distributions ............................................ 0 620 352
-------- ------- --------
Total investment income .............................................. 1,093 857 352
EXPENSES:
Mortality and expense risk ............................................ 787 393 840
-------- ------- --------
Net investment income (loss) ......................................... 306 464 (488)
-------- ------- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. 1,782 400 1,750
Change in unrealized appreciation (depreciation) ...................... 40,869 4,266 36,285
-------- ------- --------
Net gain (loss) on investment ........................................ 42,651 4,666 38,035
-------- ------- --------
Net increase (decrease) in equity accounts resulting from operations $ 42,957 $ 5,130 $ 37,547
======== ======= ========
</TABLE>
The notes to the financial statements are an integral part of this report.
4 W R L S e r i e s L i f e A c c o u n t
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF OPERATIONS
For the period ended June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH &
GROWTH BALANCED INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $ 356 $ 44 $ 239
Capital gain distributions ............................................ 2,001 13 48
-------- ----- ------
Total investment income .............................................. 2,357 57 287
EXPENSES:
Mortality and expense risk ............................................ 500 55 53
-------- ----- ------
Net investment income (loss) ......................................... 1,857 2 234
-------- ----- ------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. 721 167 284
Change in unrealized appreciation (depreciation) ...................... 24,563 263 (427)
-------- ----- ------
Net gain (loss) on investment ........................................ 25,284 430 (143)
-------- ----- ------
Net increase (decrease) in equity accounts resulting from operations $ 27,141 $ 432 $ 91
======== ===== ======
</TABLE>
<TABLE>
<CAPTION>
TACTICAL ASSET C.A.S.E.
ALLOCATION GROWTH VALUE EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------- ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ......................................................... $ 80 $ 368 $ 17
Capital gain distributions .............................................. 754 90 74
------- ------ -------
Total investment income ................................................ 834 458 91
EXPENSES:
Mortality and expense risk .............................................. 149 62 140
------- ------ -------
Net investment income (loss) ........................................... 685 396 (49)
------- ------ -------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................... 184 213 480
Change in unrealized appreciation (depreciation) ........................ 1,185 (127) 1,062
------- ------ -------
Net gain (loss) on investment .......................................... 1,369 86 1,542
------- ------ -------
Net increase (decrease) in equity accounts resulting from operations .. $ 2,054 $ 482 $ 1,493
======= ====== =======
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 5
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF OPERATIONS
For the period ended June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL U.S. THIRD AVENUE
EQUITY EQUITY VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (a)
------------- ----------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $ 3 $ 63 $ 0
Capital gain distributions ............................................ 0 10 0
----- ----- -------
Total investment income .............................................. 3 73 0
EXPENSES:
Mortality and expense risk ............................................ 14 27 8
----- ----- -------
Net investment income (loss) ......................................... (11) 46 (8)
----- ----- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. 64 238 19
Change in unrealized appreciation (depreciation) ...................... 374 444 (132)
----- ----- -------
Net gain (loss) on investment ........................................ 438 682 (113)
----- ----- -------
Net increase (decrease) in equity accounts resulting from operations $ 427 $ 728 $ (121)
===== ===== =======
</TABLE>
<TABLE>
<CAPTION>
REAL ESTATE
SECURITIES
SUB-ACCOUNT (b)
---------------
<S> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $ 0
Capital gain distributions ............................................ 0
-----
Total investment income .............................................. 0
EXPENSES:
Mortality and expense risk ............................................ 1
-----
Net investment income (loss) ......................................... (1)
------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. (1)
Change in unrealized appreciation (depreciation) ...................... (6)
------
Net gain (loss) on investment ........................................ (7)
------
Net increase (decrease) in equity accounts resulting from operations $ (8)
<FN>
- ----------
(a) The inception date of this Sub-Account was January 2, 1998.
(b) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
6 W R L S e r i e s L i f e A c c o u n t
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
SUB-ACCOUNT SUB-ACCOUNT
----------------------- ------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
---------- ------------- ---------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ 401 $ 639 $ (58) $ 661
Net gain (loss) on investment .......................... 0 0 717 418
-------- -------- -------- --------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 401 639 659 1,079
-------- -------- -------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 6,438 7,719 4,709 7,506
-------- -------- -------- --------
Less cost of units redeemed:
Administrative charges ................................ 1,550 3,108 1,080 1,633
Policy loans .......................................... 634 687 239 428
Surrender benefits .................................... 596 854 499 437
Death benefits ........................................ 8 9 28 15
-------- -------- -------- --------
2,788 4,658 1,846 2,513
-------- -------- -------- --------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 3,650 3,061 2,863 4,993
-------- -------- -------- --------
Net increase (decrease) in equity accounts ............ 4,051 3,700 3,522 6,072
Depositor's equity contribution (redemption) ........... 0 0 0 0
NET ASSETS:
Beginning of period .................................... 16,440 12,740 17,657 11,585
-------- -------- -------- --------
End of period .......................................... $ 20,491 $ 16,440 $ 21,179 $ 17,657
======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
GROWTH
SUB-ACCOUNT
------------------------
JUNE 30, DECEMBER 31,
1998 1997
--------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ 3,230 $ 44,206
Net gain (loss) on investment .......................... 158,447 15,238
-------- ---------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 161,677 59,444
-------- ---------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 60,342 106,236
-------- ---------
Less cost of units redeemed:
Administrative charges ................................ 21,466 37,231
Policy loans .......................................... 8,075 11,212
Surrender benefits .................................... 10,462 15,746
Death benefits ........................................ 2,682 711
-------- ---------
42,685 64,900
-------- ---------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 17,657 41,336
-------- ---------
Net increase (decrease) in equity accounts ............ 179,334 100,780
Depositor's equity contribution (redemption) ........... 0 0
NET ASSETS:
Beginning of period .................................... 450,271 349,491
-------- ---------
End of period .......................................... $ 629,605 $ 450,271
========= =========
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC
GLOBAL TOTAL RETURN
SUB-ACCOUNT SUB-ACCOUNT
------------------------ -----------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
-------- ------------ -------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ 306 $ 15,859 464 $ 6,101
Net gain (loss) on investment .......................... 42,651 805 4,666 6,521
-------- --------- -------- --------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 42,957 16,664 5,130 12,622
-------- --------- -------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 34,831 64,272 12,972 22,072
-------- --------- -------- --------
Less cost of units redeemed:
Administrative charges ................................ 8,973 12,590 3,679 6,025
Policy loans .......................................... 2,821 2,948 1,009 1,624
Surrender benefits .................................... 2,848 3,391 1,279 2,044
Death benefits ........................................ 424 149 170 148
-------- --------- -------- --------
15,066 19,078 6,137 9,841
-------- --------- -------- --------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 19,765 45,194 6,835 12,231
-------- --------- -------- --------
Net increase (decrease) in equity accounts ............ 62,722 61,858 11,965 24,853
Depositor's equity contribution (redemption) ........... 0 0 0 0
NET ASSETS:
Beginning of period .................................... 145,017 83,159 80,753 55,900
-------- --------- -------- --------
End of period .......................................... $ 207,739 $ 145,017 $ 92,718 $ 80,753
========= ========= ======== ========
</TABLE>
<TABLE>
<CAPTION>
EMERGING GROWTH
SUB-ACCOUNT
-------------------------
JUNE 30, DECEMBER 31,
1998 1997
---------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ (488) $ 13,841
Net gain (loss) on investment .......................... 38,035 10,932
--------- ---------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 37,547 24,773
--------- ---------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 29,735 54,392
--------- ---------
Less cost of units redeemed:
Administrative charges ................................ 9,216 14,518
Policy loans .......................................... 2,827 3,692
Surrender benefits .................................... 3,423 3,986
Death benefits ........................................ 154 192
--------- ---------
15,620 22,388
--------- ---------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 14,115 32,004
--------- ---------
Net increase (decrease) in equity accounts ............ 51,662 56,777
Depositor's equity contribution (redemption) ........... 0 0
NET ASSETS:
Beginning of period .................................... 164,702 107,925
--------- ---------
End of period .......................................... $ 216,364 $ 164,702
========= =========
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 7
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH BALANCED
SUB-ACCOUNT SUB-ACCOUNT
------------------------ -----------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
-------- ------------ -------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ 1,857 $ 7,795 $ 2 $ 992
Net gain (loss) on investment .......................... 25,284 6,524 430 226
-------- -------- -------- --------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 27,141 14,319 432 1,218
-------- -------- -------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 24,345 40,282 2,887 4,373
-------- -------- -------- --------
Less cost of units redeemed:
Administrative charges ................................ 6,481 9,888 659 958
Policy loans .......................................... 1,808 1,926 140 179
Surrender benefits .................................... 2,078 2,485 215 153
Death benefits ........................................ 104 58 10 3
-------- -------- -------- --------
10,471 14,357 1,024 1,293
-------- -------- -------- --------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 13,874 25,925 1,863 3,080
-------- -------- -------- --------
Net increase (decrease) in equity accounts ............ 41,015 40,244 2,295 4,298
Depositor's equity contribution (redemption) ........... 0 0 0 0
NET ASSETS:
Beginning of period .................................... 94,652 54,408 10,716 6,418
-------- -------- -------- --------
End of period .......................................... $ 135,667 $ 94,652 $ 13,011 $ 10,716
========= ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
GROWTH & INCOME
SUB-ACCOUNT
------------------------
JUNE 30, DECEMBER 31,
1998 1997
-------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ 234 $ 1,214
Net gain (loss) on investment .......................... (143) 283
-------- --------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 91 1,497
-------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 5,733 3,232
-------- --------
Less cost of units redeemed:
Administrative charges ................................ 689 733
Policy loans .......................................... 112 163
Surrender benefits .................................... 251 260
Death benefits ........................................ 47 11
-------- --------
1,099 1,167
-------- --------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 4,634 2,065
-------- --------
Net increase (decrease) in equity accounts ............ 4,725 3,562
Depositor's equity contribution (redemption) ........... 0 0
NET ASSETS:
Beginning of period .................................... 9,063 5,501
-------- --------
End of period .......................................... $ 13,788 $ 9,063
======== ========
</TABLE>
<TABLE>
<CAPTION>
TACTICAL ASSET
ALLOCATION C.A.S.E. GROWTH
SUB-ACCOUNT SUB-ACCOUNT
----------------------- -----------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
-------- ------------ -------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ......................... $ 685 $ 1,913 $ 396 $ 994
Net gain (loss) on investment ........................ 1,369 1,362 86 (252)
-------- -------- -------- --------
Net increase (decrease) in equity accounts resulting
from operations ..................................... 2,054 3,275 482 742
-------- -------- -------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................. 7,698 11,386 4,458 8,029
-------- -------- -------- --------
Less cost of units redeemed:
Administrative charges .............................. 1,589 2,219 1,046 970
Policy loans ........................................ 382 463 373 146
Surrender benefits .................................. 516 742 132 144
Death benefits ...................................... 77 60 10 6
-------- -------- -------- --------
2,564 3,484 1,561 1,266
-------- -------- -------- --------
Increase (decrease) in equity accounts from capital
unit transactions .................................. 5,134 7,902 2,897 6,763
-------- -------- -------- --------
Net increase (decrease) in equity accounts .......... 7,188 11,177 3,379 7,505
Depositor's equity contribution (redemption) ......... 0 0 0 (25)
NET ASSETS:
Beginning of period .................................. 29,123 17,946 11,946 4,466
-------- -------- -------- --------
End of period ........................................ $ 36,311 $ 29,123 $ 15,325 $ 11,946
======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
VALUE EQUITY
SUB-ACCOUNT
------------------------
JUNE 30, DECEMBER 31,
1998 1997
------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ......................... $ (49) $ 183
Net gain (loss) on investment ........................ 1,542 3,038
-------- --------
Net increase (decrease) in equity accounts resulting
from operations ..................................... 1,493 3,221
-------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................. 7,912 17,023
-------- --------
Less cost of units redeemed:
Administrative charges .............................. 1,341 1,257
Policy loans ........................................ 188 542
Surrender benefits .................................. 153 388
Death benefits ...................................... 97 0
-------- --------
1,779 2,187
-------- --------
Increase (decrease) in equity accounts from capital
unit transactions .................................. 6,133 14,836
-------- --------
Net increase (decrease) in equity accounts .......... 7,626 18,057
Depositor's equity contribution (redemption) ......... 0 (230)
NET ASSETS:
Beginning of period .................................. 26,714 8,887
-------- --------
End of period ........................................ $ 34,340 $ 26,714
======== ========
</TABLE>
The notes to the financial statements are an integral part of this report.
8 W R L S e r i e s L i f e A c c o u n t
<PAGE>
WRL SERIES LIFE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL U.S.
EQUITY EQUITY
SUB-ACCOUNT SUB-ACCOUNT
----------------------- -----------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 (a) 1998 1997 (a)
-------- ------------ -------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ (11) $ (4) $ 46 $ 107
Net gain (loss) on investment .......................... 438 31 682 96
------- ------- ------ -------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 427 27 728 203
------- ------- ------ -------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 2,326 2,458 4,627 3,208
------- ------- ------ -------
Less cost of units redeemed:
Administrative charges ................................ 164 117 271 91
Policy loans .......................................... 76 59 43 56
Surrender benefits .................................... 18 14 35 9
Death benefits ........................................ 52 0 4 0
------- ------- ------ -------
310 190 353 156
------- ------- ------ -------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 2,016 2,268 4,274 3,052
------- ------- ------ -------
Net increase (decrease) in equity accounts ............ 2,443 2,295 5,002 3,255
Depositor's equity contribution (redemption) ........... 0 (6) 0 3
NET ASSETS:
Beginning of period .................................... 2,289 0 3,258 0
------- ------- ------ -------
End of period .......................................... $ 4,732 $ 2,289 $ 8,260 $ 3,258
======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
THIRD AVENUE REAL ESTATE
VALUE SECURITIES
SUB-ACCOUNT SUB-ACCOUNT
------------ -----------
JUNE 30, JUNE 30,
1998 (b) 1998 (c)
------------ -----------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ (8) $ (1)
Net gain (loss) on investment .......................... (113) (7)
------- -------
Net increase (decrease) in equity accounts resulting
from operations ....................................... (121) (8)
------- -------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 2,134 246
------- ------
Less cost of units redeemed:
Administrative charges ................................ 44 0
Policy loans .......................................... 9 0
Surrender benefits .................................... 15 0
Death benefits ........................................ 0 0
------- ------
68 0
------- ------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 2,066 246
------- ------
Net increase (decrease) in equity accounts ............ 1,945 238
Depositor's equity contribution (redemption) ........... 200 400
NET ASSETS:
Beginning of period .................................... 0 0
------- ------
End of period .......................................... $ 2,145 $ 638
======= ======
<FN>
- ----------
(a) The inception date of this Sub-Account was January 2, 1997.
(b) The inception date of this Sub-Account was January 2, 1998.
(c) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 9
<PAGE>
WRL SERIES LIFE ACCOUNT
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET SUB-ACCOUNT
-------------------------
JUNE 30, DECEMBER 31,
----------- ------------
1998 1997
----------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period ..................... $ 16.13 $ 15.45
Income from operations:
Net investment income (loss) ................................... 0.35 0.68
Net realized and unrealized gain (loss) on investment .......... 0.00 0.00
-------- --------
Net income (loss) from operations ............................. 0.35 0.68
-------- --------
Accumulation unit value, end of period ........................... $ 16.48 $ 16.13
======== ========
Total return (a) ................................................. 2.18% 4.37%
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $ 20,491 $ 16,440
Ratio of net investment income (loss) to average net assets (b) . 4.29% 4.28%
</TABLE>
<TABLE>
<CAPTION>
MONEY MARKET SUB-ACCOUNT
---------------------------------------------------
DECEMBER 31,
---------------------------------------------------
1996 1995 1994 1993
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ..................... $ 14.83 $ 14.19 $ 13.84 $ 13.63
Income from operations:
Net investment income (loss) ................................... 0.62 0.64 0.35 0.21
Net realized and unrealized gain (loss) on investment .......... 0.00 0.00 0.00 0.00
-------- -------- -------- --------
Net income (loss) from operations ............................. 0.62 0.64 0.35 0.21
-------- -------- -------- --------
Accumulation unit value, end of period ........................... $ 15.45 $ 14.83 $ 14.19 $ 13.84
======== ======== ======== ========
Total return (a) ................................................. 4.17% 4.49% 2.58% 1.52%
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $ 12,740 $ 10,759 $ 9,706 $ 4,985
Ratio of net investment income (loss) to average net assets (b). 4.07% 4.37% 2.66% 1.51%
</TABLE>
<TABLE>
<CAPTION>
BOND SUB-ACCOUNT
-----------------------
JUNE 30, DECEMBER 31,
--------- ------------
1998 1997
---------- ----------
<S> <C> <C>
Accumulation unit value, beginning of period ..................... $ 21.12 $ 19.53
Income from operations:
Net investment income (loss) ................................... (0.06) 1.01
Net realized and unrealized gain (loss) on investment .......... 0.81 0.58
------- --------
Net income (loss) from operations ............................. 0.75 1.59
------- --------
Accumulation unit value, end of period ........................... $ 21.87 $ 21.12
======= ========
Total return (a) ................................................. 3.52% 8.18%
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $21,179 $ 17,657
Ratio of net investment income (loss) to average net assets (b) . (0.59%) 5.06%
</TABLE>
<TABLE>
<CAPTION>
BOND SUB-ACCOUNT
-------------------------------------------------
DECEMBER 31,
-------------------------------------------------
1996 1995 1994 1993
------------ ------------ ------------ ----------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ..................... $ 19.67 $ 16.14 $ 17.50 $ 15.57
Income from operations:
Net investment income (loss) ................................... 0.99 1.05 0.89 2.11
Net realized and unrealized gain (loss) on investment .......... (1.13) 2.48 (2.25) (0.18)
------- -------- ------- -------
Net income (loss) from operations ............................. (0.14) 3.53 (1.36) 1.93
------- -------- ------- -------
Accumulation unit value, end of period ........................... $ 19.53 $ 19.67 $ 16.14 $ 17.50
======= ======== ======= =======
Total return (a) ................................................. (0.75%) 21.89% (7.77%) 12.40%
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $11,585 $ 10,066 $ 6,259 $ 6,985
Ratio of net investment income (loss) to average net assets (b) . 5.34% 5.80% 5.57% 12.92%
</TABLE>
<TABLE>
<CAPTION>
GROWTH SUB-ACCOUNT
---------------------------
JUNE 30, DECEMBER 31,
------------- -------------
1998 1997
------------- -------------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 56.48 $ 48.48
Income from operations:
Net investment income (loss) ....................................... 0.40 5.83
Net realized and unrealized gain (loss) on investment .............. 19.61 2.17
--------- ---------
Net income (loss) from operations ................................. 20.01 8.00
--------- ---------
Accumulation unit value, end of period ............................... $ 76.49 $ 56.48
========= =========
Total return (a) ..................................................... 35.43% 16.50%
Ratio and supplemental data:
Net assets at end of period (in thousands) .......................... $ 629,605 $ 450,271
Ratio of net investment income (loss) to average net assets (b) ..... 1.20% 10.84%
</TABLE>
<TABLE>
<CAPTION>
GROWTH SUB-ACCOUNT
-------------------------------------------------------
DECEMBER 31,
-------------------------------------------------------
1996 1995 1994 1993
------------- ------------- -------------- ------------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ......................... $ 41.47 $ 28.44 $ 31.30 $ 30.37
Income from operations:
Net investment income (loss) ....................................... 2.88 3.89 0.04 0.46
Net realized and unrealized gain (loss) on investment .............. 4.13 9.14 (2.90) 0.47
--------- --------- -------- ---------
Net income (loss) from operations ................................. 7.01 13.03 (2.86) 0.93
--------- --------- -------- ---------
Accumulation unit value, end of period ............................... $ 48.48 $ 41.47 $ 28.44 $ 31.30
========= ========= ======== =========
Total return (a) ..................................................... 16.91% 45.81% (9.13%) 3.06%
Ratio and supplemental data:
Net assets at end of period (in thousands) .......................... $ 349,491 $ 262,467 $ 161,490 $ 169,757
Ratio of net investment income (loss) to average net assets (b) ..... 6.41% 11.05% 0.16% 1.56%
</TABLE>
The notes to the financial statements are an integral part of this report.
10 W R L S e r i e s L i f e A c c o u n t
<PAGE>
WRL SERIES LIFE ACCOUNT
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
GLOBAL SUB-ACCOUNT
---------------------------
JUNE 30, DECEMBER 31,
------------- -------------
1998 1997
------------- -------------
<S> <C> <C>
Accumulation unit value, beginning of period ..................... $ 17.80 $ 15.13
Income from operations:
Net investment income (loss) ................................... 0.04 2.30
Net realized and unrealized gain (loss) on investment .......... 5.01 0.37
--------- ---------
Net income (loss) from operations ............................. 5.05 2.67
--------- ---------
Accumulation unit value, end of period ........................... $ 22.85 $ 17.80
========= =========
Total return (a) ................................................. 28.33% 17.69%
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $ 207,739 $ 145,017
Ratio of net investment income (loss) to average net assets (b) . 0.34% 13.39%
</TABLE>
<TABLE>
<CAPTION>
GLOBAL SUB-ACCOUNT
------------------------------------
DECEMBER 31,
------------------------------------
1996 1995 1994 (D)
------------ ----------- -----------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ..................... $ 11.95 $ 9.80 $ 10.00
Income from operations:
Net investment income (loss) ................................... 1.50 0.45 0.71
Net realized and unrealized gain (loss) on investment .......... 1.68 1.70 (0.91)
-------- ------- -------
Net income (loss) from operations ............................. 3.18 2.15 (0.20)
-------- ------- -------
Accumulation unit value, end of period ........................... $ 15.13 $ 11.95 $ 9.80
======== ======= =======
Total return (a) ................................................. 26.60% 21.96% (2.02%)
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $ 83,159 $37,049 $21,672
Ratio of net investment income (loss) to average net assets (b) . 11.09% 4.25% 8.86%
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC TOTAL RETURN
SUB-ACCOUNT
-------------------------
JUNE 30, DECEMBER 31,
------------ ------------
1998 1997
------------ ------------
<S> <C> <C>
Accumulation unit value, beginning of period ..................... $ 18.91 $ 15.66
Income from operations:
Net investment income (loss) ................................... 0.10 1.56
Net realized and unrealized gain (loss) on investment .......... 1.06 1.69
-------- --------
Net income (loss) from operations ............................. 1.16 3.25
-------- --------
Accumulation unit value, end of period ........................... $ 20.07 $ 18.91
======== ========
Total return (a) ................................................. 6.13% 20.77%
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $ 92,718 $ 80,753
Ratio of net investment income (loss) to average net assets (b) . 1.05% 8.89%
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC TOTAL RETURN SUB-ACCOUNT
---------------------------------------------------
DECEMBER 31,
---------------------------------------------------
1996 1995 1994 1993 (c)
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ..................... $ 13.74 $ 11.12 $11.28 $ 10.00
Income from operations:
Net investment income (loss) ................................... 0.82 0.68 0.18 0.19
Net realized and unrealized gain (loss) on investment .......... 1.10 1.94 (0.34) 1.09
-------- -------- ------- --------
Net income (loss) from operations ............................. 1.92 2.62 (0.16) 1.28
-------- -------- ------- --------
Accumulation unit value, end of period ........................... $ 15.66 $ 13.74 $ 11.12 $ 11.28
======== ======== ======= ========
Total return (a) ................................................. 13.97% 23.55% (1.42%) 12.81%
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $ 55,900 $ 39,648 $23,649 $ 13,343
Ratio of net investment income (loss) to average net assets (b) . 5.76% 5.47% 1.93% 2.27%
</TABLE>
<TABLE>
<CAPTION>
EMERGING GROWTH SUB-ACCOUNT
---------------------------
JUNE 30, DECEMBER 31,
------------- -------------
1998 1997
------------- -------------
<S> <C> <C>
Accumulation unit value, beginning of period ..................... $ 23.48 $ 19.51
Income from operations:
Net investment income (loss) ................................... (0.07) 2.20
Net realized and unrealized gain (loss) on investment .......... 5.23 1.77
-------- ---------
Net income (loss) from operations ............................. 5.16 3.97
-------- ---------
Accumulation unit value, end of period ........................... $ 28.64 $ 23.48
======== =========
Total return (a) ................................................. 21.94% 20.37%
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $ 216,364 $ 164,702
Ratio of net investment income (loss) to average net assets (b) . (0.52%) 10.18%
</TABLE>
<TABLE>
<CAPTION>
EMERGING GROWTH SUB-ACCOUNT
---------------------------------------------------
DECEMBER 31,
---------------------------------------------------
1996 1995 1994 1993 (c)
------------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ..................... $ 16.56 $ 11.38 $ 12.40 $ 10.00
Income from operations:
Net investment income (loss) ................................... 0.82 0.65 (0.09) (0.09)
Net realized and unrealized gain (loss) on investment .......... 2.13 4.53 (0.93) 2.49
--------- -------- ------- -------
Net income (loss) from operations ............................. 2.95 5.18 (1.02) 2.40
--------- -------- ------- -------
Accumulation unit value, end of period ........................... $ 19.51 $ 16.56 $ 11.38 $ 12.40
========= ======== ======= =======
Total return (a) ................................................. 17.82% 45.49% (8.18%) 23.96%
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $ 107,925 $ 67,905 $36,687 $18,620
Ratio of net investment income (loss) to average net assets (b) . 4.51% 4.66% (0.86%) (0.92%)
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 11
<PAGE>
WRL SERIES LIFE ACCOUNT
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
SUB-ACCOUNT
--------------------------
JUNE 30, DECEMBER 31,
------------- ------------
1998 1997
------------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period ..................... $ 18.10 $ 14.70
Income from operations:
Net investment income (loss) ................................... 0.33 1.75
Net realized and unrealized gain (loss) on investment .......... 4.52 1.65
--------- --------
Net income (loss) from operations ............................. 4.85 3.40
--------- --------
Accumulation unit value, end of period ........................... $ 22.95 $ 18.10
========= ========
Total return (a) ................................................. 26.81% 23.14%
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $ 135,667 $ 94,652
Ratio of net investment income (loss) to average net assets (b) . 3.29% 10.26%
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH SUB-ACCOUNT
-----------------------------------
DECEMBER 31,
-----------------------------------
1996 1995 1994 (d)
------------ ----------- ----------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ..................... $ 13.43 $ 9.82 $ 10.00
Income from operations:
Net investment income (loss) ................................... 0.36 0.37 (0.06)
Net realized and unrealized gain (loss) on investment .......... 0.91 3.24 (0.12)
-------- ------- -------
Net income (loss) from operations ............................. 1.27 3.61 (0.18)
-------- ------- -------
Accumulation unit value, end of period ........................... $ 14.70 $ 13.43 $ 9.82
======== ======= =======
Total return (a) ................................................. 9.46% 36.79% (1.85%)
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $ 54,408 $32,904 $ 8,909
Ratio of net investment income (loss) to average net assets (b) . 2.65% 2.93% (0.72%)
</TABLE>
<TABLE>
<CAPTION>
BALANCED SUB-ACCOUNT
--------------------------------------------------------------
JUNE 30, DECEMBER 31,
------------ -------------------------------------------------
1998 1997 1996 1995 1994 (d)
------------ ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period ..................... $ 14.17 $ 12.21 $ 11.13 $ 9.37 $ 10.00
Income from operations:
Net investment income (loss) ................................... 0.01 1.55 0.36 0.37 0.22
Net realized and unrealized gain (loss) on investment .......... 0.52 0.41 0.72 1.39 (0.85)
-------- -------- -------- -------- -------
Net income (loss) from operations ............................. 0.53 1.96 1.08 1.76 (0.63)
-------- -------- -------- -------- -------
Accumulation unit value, end of period ........................... $ 14.70 $ 14.17 $ 12.21 $ 11.13 $ 9.37
======== ======== ======== ======== =======
Total return (a) ................................................. 3.72% 16.06% 9.73% 18.73% (6.29%)
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $ 13,011 $ 10,716 $ 6,418 $ 3,795 $ 2,145
Ratio of net investment income (loss) to average net assets (b) . 0.03% 11.62% 3.18% 3.59% 3.06%
</TABLE>
<TABLE>
<CAPTION>
GROWTH & INCOME SUB-ACCOUNT
--------------------------------------------------------------
JUNE 30, DECEMBER 31,
------------ -------------------------------------------------
1998 1997 1996 1995 1994 (d)
------------ ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period ..................... $ 16.09 $ 13.03 $ 11.77 $ 9.49 $ 10.00
Income from operations:
Net investment income (loss) ................................... 0.32 2.61 0.76 0.49 0.29
Net realized and unrealized gain (loss) on investment .......... (0.19) 0.45 0.50 1.79 (0.80)
-------- -------- -------- -------- -------
Net income (loss) from operations ............................. 0.13 3.06 1.26 2.28 (0.51)
-------- -------- -------- -------- -------
Accumulation unit value, end of period ........................... $ 16.22 $ 16.09 $ 13.03 $ 11.77 $ 9.49
======== ======== ======== ======== =======
Total return (a) ................................................. 0.80% 23.54% 10.64% 24.14% (5.15%)
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $ 13,788 $ 9,063 $ 5,501 $ 2,631 $ 1,215
Ratio of net investment income (loss) to average net assets (b). 3.94% 18.50% 6.38% 4.57% 3.71%
</TABLE>
The notes to the financial statements are an integral part of this report.
12 W R L S e r i e s L i f e A c c o u n t
<PAGE>
WRL SERIES LIFE ACCOUNT
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
TACTICAL ASSET ALLOCATION SUB-ACCOUNT
---------------------------------------------------------
JUNE 30, DECEMBER 31,
------------ ------------------------------------------
1998 1997 1996 1995 (e)
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ..................... $ 15.60 $ 13.50 $ 11.90 $ 10.00
Income from operations:
Net investment income (loss) ................................... 0.34 1.20 0.53 0.61
Net realized and unrealized gain (loss) on investment .......... 0.70 0.90 1.07 1.29
-------- -------- -------- --------
Net income (loss) from operations ............................. 1.04 2.10 1.60 1.90
-------- -------- -------- --------
Accumulation unit value, end of period ........................... $ 16.64 $ 15.60 $ 13.50 $ 11.90
======== ======== ======== ========
Total return (a) ................................................. 6.67% 15.55% 13.40% 19.03%
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $ 36,311 $ 29,123 $ 17,946 $ 9,446
Ratio of net investment income (loss) to average net assets (b) . 4.09% 8.14% 4.35% 5.47%
</TABLE>
<TABLE>
<CAPTION>
C.A.S.E. GROWTH SUB-ACCOUNT
------------------------------------------
JUNE 30, DECEMBER 31,
------------ ---------------------------
1998 1997 1996 (f)
------------ ------------ ------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ..................... $ 12.32 $ 10.81 $ 10.00
Income from operations:
Net investment income (loss) ................................... 0.37 1.51 0.37
Net realized and unrealized gain (loss) on investment .......... 0.12 0.00 0.44
-------- -------- --------
Net income (loss) from operations ............................. 0.49 1.51 0.81
-------- -------- --------
Accumulation unit value, end of period ........................... $ 12.81 $ 12.32 $ 10.81
======== ======== ========
Total return (a) ................................................. 3.98% 14.00% 8.09%
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $ 15,325 $ 11,946 $ 4,466
Ratio of net investment income (loss) to average net assets (b) . 5.70% 12.65% 6.11%
</TABLE>
<TABLE>
<CAPTION>
VALUE EQUITY SUB-ACCOUNT
------------------------------------------
JUNE 30, DECEMBER 31,
------------ ---------------------------
1998 1997 1996 (F)
------------ ------------ ------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ..................... $ 13.94 $ 11.25 $ 10.00
Income from operations:
Net investment income (loss) ................................... (0.02) 0.14 0.05
Net realized and unrealized gain (loss) on investment .......... 0.82 2.55 1.20
------- -------- --------
Net income (loss) from operations ............................. 0.80 2.69 1.25
------- -------- --------
Accumulation unit value, end of period ........................... $ 14.74 $ 13.94 $ 11.25
======= ======== ========
Total return (a) ................................................. 5.71% 23.93% 12.51%
Ratio and supplemental data:
Net assets at end of period (in thousands) ...................... $34,340 $ 26,714 $ 8,887
Ratio of net investment income (loss) to average net assets (b) . (0.31%) 1.05% 0.77%
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 13
<PAGE>
WRL SERIES LIFE ACCOUNT
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY
SUB-ACCOUNT
----------------------------
JUNE 30, DECEMBER 31,
1998 1997 (g)
------------ -------------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 10.65 $ 10.00
Income from operations:
Net investment income (loss) ....................................... (0.04) (0.03)
Net realized and unrealized gain (loss) on investment .............. 1.88 0.68
------- -------
Net income (loss) from operations ................................. 1.84 0.65
------- -------
Accumulation unit value, end of period ............................... $ 12.49 $ 10.65
======= =======
Total return (a) ..................................................... 17.28% 6.54%
Ratio and supplemental data:
Net assets at end of period (in thousands) .......................... $ 4,732 $ 2,289
Ratio of net investment income (loss) to average net assets (b) ..... (0.68%) (0.28%)
</TABLE>
<TABLE>
<CAPTION>
U.S. EQUITY
SUB-ACCOUNT
----------------------------
JUNE 30, DECEMBER 31,
1998 1997 (g)
------------ -------------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 12.59 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.10 0.99
Net realized and unrealized gain (loss) on investment .............. 1.64 1.60
-------- ---------
Net income (loss) from operations ................................. 1.74 2.59
-------- ---------
Accumulation unit value, end of period ............................... $ 14.33 $ 12.59
======== =========
Total return (a) ..................................................... 13.83% 25.89%
Ratio and supplemental data:
Net assets at end of period (in thousands) .......................... $ 8,260 $ 3,258
Ratio of net investment income (loss) to average net assets (b) ..... 1.47% 8.28%
</TABLE>
The notes to the financial statements are an integral part of this report.
14 W R L S e r i e s L i f e A c c o u n t
<PAGE>
WRL SERIES LIFE ACCOUNT
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
THIRD AVENUE REAL ESTATE
VALUE SECURITIES
SUB-ACCOUNT SUB-ACCOUNT
-------------- ------------
JUNE 30, JUNE 30,
1998 (h) 1998 (i)
-------------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 10.00 $ 10.00
Income from operations:
Net investment income (loss) ....................................... (0.04) (0.01)
Net realized and unrealized gain (loss) on investment .............. (0.41) (0.22)
------- -------
Net income (loss) from operations ................................. (0.45) (0.23)
------- -------
Accumulation unit value, end of period ............................... $ 9.55 $ 9.77
======= =======
Total return (a) ..................................................... (4.52%) (2.30%)
Ratio and supplemental data:
Net assets at end of period (in thousands) .......................... $ 2,145 $ 638
Ratio of net investment income (loss) to average net assets (b) ..... (0.87%) (0.89%)
<FN>
- ----------
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 March 1, 1993.
(d) The inception date of this Sub-Account was March 1, 1994.
(e) The inception date of this Sub-Account was January 3, 1995.
(f) The inception date of this Sub-Account was May 1, 1996.
(g) The inception date of this Sub-Account was January 2, 1997.
(h) The inception date of this Sub-Account was January 2, 1998.
(i) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
19 9 8 S e m i - A n n u a l R e p o r t 15
<PAGE>
WRL SERIES LIFE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
June 30, 1998
(unaudited)
--------------------------------------------------------
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
sixteen investment options referred to as sub-accounts. Each sub-account
invests in the corresponding Portfolio of the WRL Series Fund, Inc.
(collectively referred to as the "Fund" and individually as a "Portfolio"), a
registered management investment company under the Investment Company Act of
1940, as amended.
The Fund has entered into annually renewable investment advisory agreements
for each Portfolio with WRL Investment Management, Inc. ("WRL Management") as
investment adviser. Costs incurred in connection with the advisory services
rendered by WRL Management are paid by each Portfolio. WRL Management has
entered into sub-advisory agreements with various management companies, some of
which are affiliates of WRL. Each sub-adviser is compensated directly by WRL
Management.
On January 2, 1998 and May 1, 1998, WRL made initial contributions totaling
$ 600,000 to the Life Account. The respective amounts of the contributions and
units received are as follows:
SUB-ACCOUNT CONTRIBUTIONS UNITS
- --------------------- --------------- ---------
Third Avenue Value $ 200,000 20,000
Real Estate Securities 400,000 40,000
The Life Account holds assets to support the benefits under certain flexible
premium variable universal life insurance policies (the "Policies") issued by
WRL. The Life Account's equity transactions are accounted for using the
appropriate effective date at the corresponding accumulation unit value.
The following significant accounting policies, which are in conformity with
generally accepted accounting principles for unit investment trusts, have been
consistently applied in the preparation of the Trust's financial statements.
A. VALUATION OF INVESTMENTS AND SECURITIES TRANSACTIONS
Investments in the Fund's shares are stated at the closing net asset value
("NAV") per share as determined by the Fund. Investment transactions are
accounted for on the trade date at the Fund NAV next determined after receipt
of sale or redemption orders without sales charges. Dividend income and capital
gains 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.
C. ESTIMATES
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.
NOTE 2 -- CHARGES AND DEDUCTIONS
Charges are assessed by WRL in connection with the 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 policy. Contingent surrender charges also apply.
Under the other forms of the Policies, such "front-end" and other
administrative charges are not deducted prior to allocation of the initial
premium payment but may reside as contingent surrender charges.
Under all forms of the Policy, monthly charges against policy cash values
are made to compensate WRL for costs of insurance provided.
B. LIFE ACCOUNT CHARGES
A daily charge equal to an annual rate of 0.90% of average daily net assets
is assessed to compensate WRL for assumption of mortality and expense risks and
administrative services in connection with issuance and administration of the
Policies. This charge (not assessed at the individual contract level)
effectively reduces the value of a unit outstanding during the year.
16 W R L S e r i e s L i f e A c c o u n t
<PAGE>
WRL SERIES LIFE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
NOTE 3 -- DIVIDENDS AND DISTRIBUTIONS
Dividends of the Money Market Portfolio are declared daily and reinvested
monthly. Dividends and capital gains distributions of the remaining Portfolios
are typically declared and reinvested annually. Dividends and distributions of
the Fund are recorded on the ex-date and are generally paid to and reinvested
by the Life Account on the next business day after the ex-date. Dividends are
not declared by the Life Account, since the increase in the value of the
underlying investment in the Fund is reflected daily in the unit price used to
calculate the equity value within the Life Account. Consequently, a dividend
distribution by the underlying Fund does not change either the unit price or
equity values within the Life Account.
NOTE 4 -- SECURITIES TRANSACTIONS
Securities transactions are summarized as follows:
For the period ended June 30, 1998
<TABLE>
<CAPTION>
MONEY MARKET BOND GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C>
Purchase of long-term securities .................... $ 21,832 $ 6,656 $ 30,921
Proceeds from sales of long-term securities ......... 17,937 3,393 10,424
STRATEGIC TOTAL EMERGING
GLOBAL RETURN GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Purchase of long-term securities .................... $ 24,641 $ 8,584 $ 17,521
Proceeds from sales of long-term securities ......... 4,370 1,224 3,867
AGGRESSIVE GROWTH &
GROWTH BALANCED INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Purchase of long-term securities .................... $ 17,550 $ 2,479 $ 7,044
Proceeds from sales of long-term securities ......... 1,770 606 2,148
TACTICAL ASSET C.A.S.E. VALUE
ALLOCATION GROWTH EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Purchase of long-term securities .................... $ 6,730 $ 4,478 $ 7,853
Proceeds from sales of long-term securities ......... 721 1,191 1,706
INTERNATIONAL U.S. THIRD AVENUE
EQUITY EQUITY VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (a)
Purchase of long-term securities .................... $ 2,996 $ 6,177 $ 2,822
Proceeds from sales of long-term securities ......... 1,003 1,877 565
REAL ESTATE
SECURITIES
SUB-ACCOUNT (b)
Purchase of long-term securities .................... $ 677
Proceeds from sales of long-term securities ......... 32
<FN>
- ----------
(a) The inception date of this Sub-Account was January 2, 1998.
(b) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
1 9 9 8 S e m i - A n n u a l R e p o r t 17
<PAGE>
WRL SERIES LIFE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
NOTE 5 -- UNIT ACTIVITY
For the period ended June 30, 1998
<TABLE>
<CAPTION>
MONEY MARKET BOND GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C>
Units balance - beginning of year ......... 1,019.5 835.9 7,972.0
Units issued .............................. 5,232.1 484.3 1,443.3
Units redeemed ............................ 5,008.0 351.7 1,184.5
------- ----- -------
Units balance - end of period ............. 1,243.6 968.5 8,230.8
======= ===== =======
STRATEGIC TOTAL EMERGING
GLOBAL RETURN GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Units balance - beginning of year ......... 8,144.9 4,270.3 7,013.3
Units issued .............................. 2,687.2 999.9 1,923.4
Units redeemed ............................ 1,740.2 650.3 1,380.9
------- --------- -------
Units balance - end of period ............. 9,091.9 4,619.9 7,555.8
======= ========= =======
AGGRESSIVE GROWTH &
GROWTH BALANCED INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Units balance - beginning of year ......... 5,230.2 756.3 563.1
Units issued .............................. 1,801.2 316.5 586.3
Units redeemed ............................ 1,119.9 187.4 299.4
------- --------- -------
Units balance - end of period ............. 5,911.5 885.4 850.0
======= ========= =======
TACTICAL ASSET C.A.S.E. VALUE
ALLOCATION GROWTH EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Units balance - beginning of year ......... 1,867.2 969.3 1,915.9
Units issued .............................. 716.2 612.0 1,002.9
Units redeemed ............................ 400.7 385.3 588.9
------- --------- -------
Units balance - end of period ............. 2,182.7 1,196.0 2,329.9
======= ========= =======
INTERNATIONAL U.S. THIRD AVENUE
EQUITY EQUITY VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (a)
Units balance - beginning of year ......... 214.9 258.8 N/A
Units issued .............................. 334.7 609.4 325.7
Units redeemed ............................ 170.9 291.8 101.0
------- --------- -------
Units balance - end of period ............. 378.7 576.4 224.7
======= ========= =======
REAL ESTATE
SECURITIES
SUB-ACCOUNT (b)
Units balance - beginning of year ......... N/A
Units issued .............................. 68.9
Units redeemed ............................ 3.7
-------
Units balance - end of period ............. 65.2
=======
<FN>
- ----------
(a) The inception date of this Sub-Account was January 2, 1998.
(b) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
18 W R L S e r i e s L i f e A c c o u n t
<PAGE>
WRL SERIES LIFE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
NOTE 6 -- OTHER MATTERS
At June 30, 1998, the equity accounts included net unrealized appreciation
(depreciation) on investments as follows:
SUB-ACCOUNT
- -------------------------------------
Money Market ...................... $ N/A
Bond .............................. 725
Growth ............................ 243,440
Global ............................ 49,853
Strategic Total Return ............ 18,036
Emerging Growth ................... 67,462
Aggressive Growth ................. 33,595
Balanced .......................... 940
Growth & Income ................... 55
Tactical Asset Allocation ......... 3,674
C.A.S.E. Growth ................... (362)
Value Equity ...................... 4,240
International Equity .............. 271
U.S. Equity ....................... 459
Third Avenue Value ................ (132)
Real Estate Securities ............ (6)
1 9 9 8 S e m i - A n n u a l R e p o r t 19
<PAGE>
This Page Intentionally Left Blank
20 W R L S e r i e s L i f e A c c o u n t
<PAGE>
/DIAMOND/
WRL SERIES LIFE ACCOUNT
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:
PricewaterhouseCoopers LLP
1055 Broadway
Kansas City, MO 64105
<PAGE>
THIS MATERIAL IS FOR POLICY HOLDERS'
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.
[LOGO]
--------------------------------------------------
Western Reserve Life Assurance Co. of Ohio
Distributor: InterSecurities, Inc.
201 Highland Avenue /bullet/ Largo, Florida 33770-2597
August 1998
ACC00003 (8/98)
