<PAGE>
SEMI-ANNUAL REPORT
. PACIFIC SELECT SEPARATE ACCOUNT OF
PACIFIC LIFE INSURANCE COMPANY
[LOGO OF PACIFIC SELECT]
<PAGE>
<TABLE>
<CAPTION>
PACIFIC SELECT SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998 (Unaudited)
(In thousands)
High Govern-
Money Yield Managed ment
Market Bond Bond Securities Growth
Variable Variable Variable Variable Variable
Account Account Account Account Account
-----------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments:
Money Market Portfolio (22 shares; cost $221) ........................ $221
High Yield Bond Portfolio (636 shares; cost $5,916) .................. $6,207
Managed Bond Portfolio (58 shares; cost $622) ........................ $651
Government Securities Portfolio (28 shares; cost $300) ............... $301
Growth Portfolio (300 shares; cost $5,181) ........................... $7,104
Aggressive Equity Portfolio (9 shares; cost $105) ....................
Growth LT Portfolio (73 shares; cost $1,009) .........................
-----------------------------------------------------
Total Assets .......................................................... 221 6,207 651 301 7,104
-----------------------------------------------------
LIABILITIES
Payables:
Mortality and expense risk fee ....................................... 4 4
-----------------------------------------------------
Total Liabilities ..................................................... 4 4
-----------------------------------------------------
NET ASSETS ............................................................ $221 $6,203 $651 $301 $7,100
=====================================================
<CAPTION>
Aggressive Growth
Equity LT
Variable Variable
Account Account
-----------------------
<S> <C> <C>
ASSETS
Investments:
Money Market Portfolio (22 shares; cost $221) ........................
High Yield Bond Portfolio (636 shares; cost $5,916) ..................
Managed Bond Portfolio (58 shares; cost $622) ........................
Government Securities Portfolio (28 shares; cost $300) ...............
Growth Portfolio (300 shares; cost $5,181) ...........................
Aggressive Equity Portfolio (9 shares; cost $105) .................... $119
Growth LT Portfolio (73 shares; cost $1,009) ......................... $1,580
-----------------------
Total Assets .......................................................... 119 1,580
-----------------------
LIABILITIES
Payables:
Mortality and expense risk fee ....................................... 1
-----------------------
Total Liabilities ..................................................... 1
-----------------------
NET ASSETS ............................................................ $119 $1,579
=======================
</TABLE>
See Notes to Financial Statements
B-1
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES (Continued)
JUNE 30, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Equity Multi- Equity Inter- Emerging
Income Strategy Equity Index national Markets
Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account
=====================================================================
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
Equity Income Portfolio (149 shares; cost $2,502) .......... $3,736
Multi-Strategy Portfolio (67 shares; cost $848) ............ $1,095
Equity Portfolio (5 shares; cost $142) ..................... $147
Equity Index Portfolio (136 shares; cost $2,636) ........... $4,048
International Portfolio (274 shares; cost $3,749) .......... $4,743
Emerging Markets Portfolio (22 shares; cost $238) .......... $181
--------------------------------------------------------------------
Total Assets ................................................ 3,736 1,095 147 4,048 4,743 181
--------------------------------------------------------------------
LIABILITIES
Payables:
Mortality and expense risk fee ............................. 2 1 2 3
--------------------------------------------------------------------
Total Liabilities ........................................... 2 1 2 3
--------------------------------------------------------------------
NET ASSETS .................................................. $3,734 $1,094 $147 $4,046 $4,740 $181
====================================================================
</TABLE>
See Notes to Financial Statements
B-2
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
High Govern-
Money Yield Managed ment Aggressive Growth
Market Bond Bond Securities Growth Equity LT
Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account
=====================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends ................................................... $6 $ 302 $25 $14 $ 712 $ 65
EXPENSES
Mortality and expense risk fee .............................. 1 21 2 1 25 5
---------------------------------------------------------------------
Net Investment Income ........................................ 5 281 23 13 687 60
---------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain from security transactions ................ 8 3 128 $ 1 10
Net unrealized appreciation (depreciation) on investments ... (141) (2) (2) (420) 13 298
---------------------------------------------------------------------
Net Realized And Unrealized Gain (Loss) On Investments ....... (133) 1 (2) (292) 14 308
---------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ................................... $5 $ 148 $24 $11 $ 395 $14 $368
=====================================================================
</TABLE>
See Notes to Financial Statements
B-3
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
STATEMENT OF OPERATIONS (Continued)
FOR THE PERIOD ENDED JUNE 30, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Equity Multi- Equity Inter- Emerging
Income Strategy Equity Index national Markets
Variable Variable Variable Variable Variable Variable
Account Account Account(1) Account Account Account
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends .................................................. $414 $ 89 $ 54 $350 $ 1
EXPENSES
Mortality and expense risk fee ............................. 12 4 13 16 1
-----------------------------------------------------------------------
Net Investment Income ....................................... 402 85 41 334 0
-----------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain (loss) from security transactions ........ 25 31 17 40 (1)
Net unrealized appreciation (depreciation) on investments .. 67 (13) $5 536 260 (25)
-----------------------------------------------------------------------
Net Realized And Unrealized Gain (Loss) On Investments ...... 92 18 5 553 300 (26)
-----------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS .................................. $494 $103 $5 $594 $634 $(26)
=======================================================================
</TABLE>
(1) For the period from May 12, 1998 (commencement of operations) to June 30,
1998; total dividends received in full for the period was less than $500.
See Notes to Financial Statements
B-4
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED JUNE 30, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
High Govern-
Money Yield Managed ment Aggressive Growth
Market Bond Bond Securities Growth Equity LT
Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account
==============================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income .......................... $ 5 $ 281 $ 23 $ 13 $ 687 $ 60
Net realized gain from
security transactions ......................... 8 3 128 $ 1 10
Net unrealized appreciation
(depreciation) on investments ................. (141) (2) (2) (420) 13 298
------------------------------------------------------------------------------
Net Increase In Net Assets
Resulting From Operations ...................... 5 148 24 11 395 14 368
------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
Transfers--policy charges and deductions ....... (2) (19) (2) (37) (4)
Transfers in (from other variable accounts) .... 222 51 59 1 124 100 16
Transfers out (to other variable accounts) ..... (224) (79) (58) (2) (91) (13) (20)
Transfers--other ............................... 3 1 (37) (148) (16)
------------------------------------------------------------------------------
Net Increase (Decrease) In Net Assets Derived
From Policy Transactions ....................... (1) (46) (1) (38) (152) 87 (24)
------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ........... 4 102 23 (27) 243 101 344
------------------------------------------------------------------------------
NET ASSETS
Beginning of Period ............................ 217 6,101 628 328 6,857 18 1,235
------------------------------------------------------------------------------
End of Period .................................. $221 $6,203 $651 $301 $7,100 $119 $1,579
==============================================================================
</TABLE>
See Notes to Financial Statements
B-5
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE PERIOD ENDED JUNE 30, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Equity Multi- Equity Inter- Emerging
Income Strategy Equity Index national Markets
Variable Variable Variable Variable Variable Variable
Account Account Account(1) Account Account Account
===========================================================================
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income ......................... $ 402 $ 85 $ 41 $ 334
Net realized gain (loss) from
security transactions ........................ 25 31 17 40 $ (1)
Net unrealized appreciation
(depreciation) on investments ................ 67 (13) $ 5 536 260 (25)
-------------------------------------------------------------------------
Net Increase (Decrease) In Net Assets
Resulting From Operations .................... 494 103 5 594 634 (26)
-------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
Transfers--policy charges and deductions ...... (26) (4) (20) (25) (2)
Transfers in (from other variable accounts) ... 31 10 142 77 25 41
Transfers out (to other variable accounts) .... (11) (6) (32) (101) (31)
Transfers--other .............................. (27) (100) (10) (15)
-------------------------------------------------------------------------
Net Increase (Decrease) In Net Assets Derived
From Policy Transactions ...................... (33) (100) 142 15 (116) 8
-------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS .......... 461 3 147 609 518 (18)
-------------------------------------------------------------------------
NET ASSETS
Beginning of Period ........................... 3,273 1,091 3,437 4,222 199
-------------------------------------------------------------------------
End of Period ................................. $3,734 $1,094 $147 $4,046 $4,740 $181
===========================================================================
</TABLE>
(1) For the period from May 12, 1998 (commencement of operations) to June 30,
1998.
See Notes to Financial Statements
B-6
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1997
(In thousands)
<TABLE>
<CAPTION>
High
Money Yield Managed
Market Bond Bond
Variable Variable Variable
Account Account Account
----------------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income ................................................ $ 9 $ 467 $ 30
Net realized gain (loss) from security transactions .................. 14 2
Net unrealized appreciation on investments ........................... 6 20
----------------------------------------
Net Increase In Net Assets Resulting From Operations .................. 9 487 52
----------------------------------------
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
Transfers--policy charges and deductions ............................. (3) (38) (5)
Transfers in (from other variable accounts) .......................... 190 175 109
Transfers out (to other variable accounts) ........................... (190) (104) (50)
Transfers--other ..................................................... 2 (2) (2)
----------------------------------------
Net Increase (Decrease) In Net Assets Derived
From Policy Transactions ............................................. (1) 31 52
----------------------------------------
NET INCREASE IN NET ASSETS ............................................ 8 518 104
----------------------------------------
NET ASSETS
Beginning of Year .................................................... 209 5,583 524
----------------------------------------
End of Year .......................................................... $ 217 $6,101 $628
----------------------------------------
<CAPTION>
Govern-
ment Aggressive
Securities Growth Equity
Variable Variable Variable
Account Account Account (1)
----------------------------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income ................................................ $ 15 $ 598
Net realized gain (loss) from security transactions .................. (1) 94
Net unrealized appreciation on investments ........................... 13 895 $ 1
----------------------------------------
Net Increase In Net Assets Resulting From Operations .................. 27 1,587 1
----------------------------------------
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
Transfers--policy charges and deductions ............................. (3) (72)
Transfers in (from other variable accounts) .......................... 1 286 17
Transfers out (to other variable accounts) ........................... (19) (192)
Transfers--other ..................................................... (3) (163)
----------------------------------------
Net Increase (Decrease) In Net Assets Derived
From Policy Transactions ............................................. (24) (141) 17
----------------------------------------
NET INCREASE IN NET ASSETS ............................................ 3 1,446 18
----------------------------------------
NET ASSETS
Beginning of Year .................................................... 325 5,411
----------------------------------------
End of Year .......................................................... $ 328 $6,857 $ 18
========================================
</TABLE>
(1) For the period from January 15, 1997 (commencement of operations) to
December 31, 1997.
See Notes to Financial Statements
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 1997
(In thousands)
<TABLE>
<CAPTION>
Growth Equity Multi- Equity Inter- Emerging
LT Income Strategy Index national Markets
Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account(1)
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income .......................................... $ 56 $ 182 $ 78 $ 127 $ 124
Net realized gain (loss) from security transactions ............ 54 123 15 53 58 $ (1)
Net unrealized appreciation (depreciation) on investments ...... 12 452 83 614 155 (32)
-------------------------------------------------------------------
Net Increase (Decrease) In Net Assets Resulting From Operations.. 122 757 176 794 337 (33)
-------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
FROM POLICY TRANSACTIONS
Transfers--policy charges and deductions ....................... (10) (54) (12) (34) (51) (2)
Transfers in (from other variable accounts) .................... 84 271 4 432 159 342
Transfers out (to other variable accounts) ..................... (179) (464) (4) (36) (131) (34)
Transfers--other ............................................... (15) (82) (25) (60) (39) (74)
-------------------------------------------------------------------
Net Increase (Decrease) In Net Assets Derived
From Policy Transactions ....................................... (120) (329) (37) 302 (62) 232
-------------------------------------------------------------------
NET INCREASE IN NET ASSETS ...................................... 2 428 139 1,096 275 199
-------------------------------------------------------------------
NET ASSETS
Beginning of Year .............................................. 1,233 2,845 952 2,341 3,947
-------------------------------------------------------------------
End of Year .................................................... $1,235 $3,273 $1,091 $3,437 $4,222 $ 199
===================================================================
</TABLE>
(1) For the period from January 15, 1997 (commencement of operations) to
December 31, 1997.
See Notes to Financial Statements
B-8
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The Pacific Select Separate Account (the "Separate Account") is registered as
a unit investment trust under the Investment Company Act of 1940, as amended,
and is comprised of fourteen subaccounts called Variable Accounts: the Money
Market Variable Account, the High Yield Bond Variable Account, the Managed Bond
Variable Account, the Government Securities Variable Account, the Growth
Variable Account, the Aggressive Equity Variable Account, the Growth LT Variable
Account, the Equity Income Variable Account, the Multi-Strategy Variable
Account, the Equity Variable Account, the Bond and Income Variable Account, the
Equity Index Variable Account, the International Variable Account, and the
Emerging Markets Variable Account. There was no operational activity in the Bond
and Income Variable Account through June 30, 1998. The assets in each Variable
Account are invested in shares of the corresponding portfolios of Pacific Select
Fund (the "Fund"), each of which pursues different investment objectives and
policies. The financial statements of the Fund, including the schedules of
investments, are included in Section A of this report and should be read in
conjunction with the Separate Account's financial statements.
The Separate Account was established by Pacific Life Insurance Company
(formerly named Pacific Mutual Life Insurance Company - see Note 1 to Financial
Statements of the Fund on A-67) on November 20, 1986 and commenced operations on
January 7, 1988. Under applicable insurance law, the assets and liabilities of
the Separate Account are clearly identified and distinguished from the other
assets and liabilities of Pacific Life. The assets of the Separate Account will
not be charged with any liabilities arising out of any other business conducted
by Pacific Life, but the obligations of the Separate Account, including benefits
related to variable life insurance, are obligations of Pacific Life.
The Separate Account held by Pacific Life represents funds from individual
flexible premium variable life policies. The assets of the Separate Account are
carried at market value.
The preparation of the accompanying financial statements requires management
to make estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
income and expenses during the reporting period. Actual results could differ
from those estimates.
A. Valuation of Investments
Investments in shares of the Fund are valued at the reported net asset values
of the respective portfolios. Valuation of securities held by the Fund is
discussed in the notes to its financial statements.
B. Security Transactions
Transactions are recorded on the trade date. Realized gains and losses on
sales of investments are determined on the basis of identified cost.
C. Federal Income Taxes
The operations of the Separate Account will be reported on the Federal income
tax return of Pacific Life, which is taxed as a life insurance company under the
provisions of the Tax Reform Act of 1986. Under current tax law, no Federal
income taxes are expected to be paid by Pacific Life with respect to the
operations of the Separate Account.
2. DIVIDENDS
During the six months period ended June 30, 1998, the Fund has declared
dividends for each portfolio except for the Aggressive Equity Portfolio. The
amounts accrued by the Separate Account for its share of the dividends were
reinvested in additional full and fractional shares of the related portfolio.
3. CHARGES AND EXPENSES
Pacific Life charges the Separate Account daily for mortality and expense
risks assumed with respect to variable life insurance policies funded by the
Separate Account at an annual rate of 0.70% of the average daily net assets of
each Variable Account. Under the policies, Pacific Life makes certain
deductions from the net assets of each Variable Account for sales load,
administrative expenses, state premium taxes, cost of insurance and charges for
optional benefits. The operating expenses of the Separate Account are paid by
Pacific Life.
4. RELATED PARTY AGREEMENT
Pacific Mutual Distributors, Inc., a wholly-owned subsidiary of Pacific Life,
serves as principal underwriter of variable life insurance policies funded by
interests in the Separate Account, without remuneration from the Separate
Account.
B-9
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
5. SEPARATE ACCOUNT'S COST OF INVESTMENTS IN THE FUND SHARES
The investment in the Fund shares are carried at identified cost, which
represents the amount available for investment (including reinvested
distributions of net investment income and realized gains) in such shares after
deduction of mortality and expense risk charges (M&E). The cost and market value
of total Separate Account's investments in the Fund as of June 30, 1998 were as
follows (amounts in thousands):
<TABLE>
<CAPTION>
Variable Accounts
=======================================================
Money High Yield Managed Government
Market Bond Bond Securities Growth
<S> <C> <C> <C> <C> <C>
=======================================================
Total cost of investments at beginning of period $218 $5,687 $599 $326 $4,535
Add: Total net proceeds from policy and M&E transactions 2 19 47 125
Reinvested distributions from the Fund:
(a) Net investment income 6 247 16 8
(b) Net realized gain 55 9 6 712
-------------------------------------------------------
Sub-Total 226 6,008 671 340 5,372
Less: Cost of investments disposed during the period 5 92 49 40 191
-------------------------------------------------------
Total cost of investments at end of period 221 5,916 622 300 5,181
Add: Unrealized appreciation 291 29 1 1,923
-------------------------------------------------------
Total market value of investments at end of period $221 $6,207 $651 $301 $7,104
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Aggressive Growth Equity Multi-
Equity LT Income Strategy Equity (1)
<S> <C> <C> <C> <C> <C>
===========================================================
Total cost of investments at beginning of period $ 17 $ 966 $2,116 $ 834
Add: Total net proceeds from policy and M&E transactions 101 7 17 5 $142
Reinvested distributions from the Fund:
(a) Net investment income 3 12 15
(b) Net realized gain 62 402 74
-----------------------------------------------------------
Sub-Total 118 1,038 2,547 928 142
Less: Cost of investments disposed during the period 13 29 45 80
-----------------------------------------------------------
Total cost of investments at end of period 105 1,009 2,502 848 142
Add: Unrealized appreciation 14 571 1,234 247 5
-----------------------------------------------------------
Total market value of investments at end of period $119 $1,580 $3,736 $1,095 $147
===========================================================
</TABLE>
<TABLE>
<CAPTION>
Equity Inter- Emerging
Index national Markets
<S> <C> <C> <C>
=============================
Total cost of investments at beginning of period $2,571 $3,501 $231
Add: Total net proceeds from policy and M&E transactions 44 24 11
Reinvested distributions from the Fund:
(a) Net investment income 25 25 1
(b) Net realized gain 29 325
-----------------------------
Sub-Total 2,669 3,875 243
Less: Cost of investments disposed during the period 33 126 5
-----------------------------
Total cost of investments at end of period 2,636 3,749 238
Add: Unrealized appreciation (depreciation) 1,412 994 (57)
-----------------------------
Total market value of investments at end of period $4,048 $4,743 $181
=============================
- ----- ----------------------------------------------------------------------------
(1) For the period from May 12, 1998 (commencement of operations) to June 30, 1998.
</TABLE>
B-10
<PAGE>
PACIFIC SELECT SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
6. TRANSACTIONS IN SEPARATE ACCOUNT UNITS AND SELECTED ACCUMULATION UNIT **
INFORMATION
Transactions in Separate Account units for the period ended June 30, 1998
and the selected accumulation unit information as of June 30, 1998 and December
31, 1997 were as follows:
<TABLE>
<CAPTION>
Variable Accounts
--------------------------------------------------------------
Money High Yield Managed Government
Market Bond Bond Securities Growth
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total units outstanding at beginning of period 13,773 239,930 28,280 15,605 156,312
Increase (decrease) in units resulting from
policy transactions:
(a) Transfers--policy charges and deductions (113) (752) (105) (22) (791)
(b) Transfers in (from other variable accounts) 13,532 1,941 2,904 46 2,438
(c) Transfers out (to other variable accounts) (13,659) (3,019) (2,819) (84) (1,791)
(d) Transfers--other 175 100 (5) (1,733) (2,922)
--------------------------------------------------------------
Sub-Total (65) (1,730) (25) (1,793) (3,066)
--------------------------------------------------------------
Total units outstanding at end of period 13,708 238,200 28,255 13,812 153,246
==============================================================
Accumulation Unit Value: At beginning of period $15.76 $25.43 $22.20 $20.99 $43.87
At end of period $16.12 $26.04 $23.03 $21.75 $46.33
--------------------------------------------------------------
<CAPTION>
Aggressive Growth Equity Multi-
Equity LT Income Strategy Equity (1)
--------------------------------------------------------------
Total units outstanding at beginning of period 1,810 62,643 93,236 38,980
Increase (decrease) in units resulting from
policy transactions:
(a) Transfers--policy charges and deductions (4) (184) (687) (126) (14)
(b) Transfers in (from other variable accounts) 9,976 751 1,023 339 14,221
(c) Transfers out (to other variable accounts) (1,396) (944) (368) (192)
(d) Transfers--other 33 (761) (892) (3,462) (1)
--------------------------------------------------------------
Sub-Total 8,609 (1,138) (924) (3,441) 14,206
--------------------------------------------------------------
Total units outstanding at end of period 10,419 61,505 92,312 35,539 14,206
==============================================================
Accumulation Unit Value: At beginning of period $10.17 $19.72 $35.10 $27.98 $10.00
At end of period $11.46 $25.67 $40.44 $30.80 $10.32
--------------------------------------------------------------
<CAPTION>
Equity Inter- Emerging
Index national Markets
-----------------------------------
Total units outstanding at beginning of period 117,238 190,739 21,591
Increase (decrease) in units resulting from
policy transactions:
(a) Transfers--policy charges and deductions (618) (1,018) (201)
(b) Transfers in (from other variable accounts) 2,505 972 4,791
(c) Transfers out (to other variable accounts) (1,056) (3,986) (3,492)
(d) Transfers--other (313) (557) (26)
-----------------------------------
Sub-Total 518 (4,589) 1,072
-----------------------------------
Total units outstanding at end of period 117,756 186,150 22,663
===================================
Accumulation Unit Value: At beginning of period $29.31 $22.13 $9.21
At end of period $34.36 $25.46 $7.98
-----------------------------------
</TABLE>
- ---------------------------------------------------
(1) For the period from May 12, 1998 (commencement of operations) to June 30,
1998.
** Accumulation Unit: unit of measure used to calculate the value of a Policy
Owner's interest in a Variable Account during the accumulation period.
B-11
