<PAGE>
SEMI-ANNUAL REPORT
. PACIFIC SELECT EXEC SEPARATE ACCOUNT OF
PACIFIC MUTUAL LIFE INSURANCE COMPANY
[LOGO OF PACIFIC SELECT EXEC]
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENTS OF ASSETS & LIABILITIES
JUNE 30, 1995 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
High
Money Managed Government Yield
Market Bond Securities Bond
Variable Variable Variable Variable
Account Account Account Account
-------- -------- ---------- ---------
<S> <C> <C> <C> <C>
ASSETS
Investments in Pacific Select Fund:
Money Market Portfolio (2,876 shares; cost $28,887)........... $28,819
Managed Bond Portfolio (3,386 shares; cost $36,019)........... $36,070
Government Securities Portolio (518 shares; cost $5,196)...... $ 5,398
High Yield Bond Portfolio (1,196 shares; cost $11,127)........ $11,354
Growth Portfolio (4,360 shares; cost $72,643).................
Equity Income Portfolio (2,284 shares; cost $35,064)..........
Multi-Strategy Portfolio (3,160 shares; cost $39,407).........
International Portfolio (3,349 shares, cost $41,369)..........
Equity Index Portfolio (2,867 shares; cost $37,721)...........
Growth LT Portfolio (2,097 shares; cost $23,901)..............
Receivables:
Due from Pacific Mutual Life Insurance Company................ 2,886 16 30
Fund shares redeemed.......................................... 21
-------- -------- --------- --------
TOTAL ASSETS..................................................... 31,685 36,086 5,419 11,384
-------- -------- --------- --------
LIABILITIES
Payables:
Due to Pacific Mutual Life Insurance Company.................. 21
Fund shares purchased......................................... 2,866 16 30
-------- -------- --------- --------
TOTAL LIABILITIES................................................ 2,866 16 21 30
-------- -------- ---------- --------
NET ASSETS....................................................... $28,819 $36,070 $ 5,398 $11,354
======== ======== ========== ========
<CAPTION>
Equity Multi- Inter-
Growth Income Strategy national
Variable Variable Variable Variable
Account Account Account Account
-------- -------- ---------- ---------
<S> <C> <C> <C> <C>
ASSETS
Investments in Pacific Select Fund:
Money Market Portfolio (2,876 shares; cost $28,887)...........
Managed Bond Portfolio (3,386 shares; cost $36,019)...........
Government Securities Portolio (518 shares; cost $5,196)......
High Yield Bond Portfolio (1,196 shares; cost $11,127)........
Growth Portfolio (4,360 shares; cost $72,643)................. $73,588
Equity Income Portfolio (2,284 shares; cost $35,064).......... $37,404
Multi-Strategy Portfolio (3,160 shares; cost $39,407)......... $41,628
International Portfolio (3,349 shares, cost $41,369).......... $42,685
Equity Index Portfolio (2,867 shares; cost $37,721)...........
Growth LT Portfolio (2,097 shares; cost $23,901)..............
Receivables:
Due from Pacific Mutual Life Insurance Company................ 45 150 14
Fund shares redeemed.......................................... 8
-------- -------- --------- --------
TOTAL ASSETS..................................................... 73,596 37,449 41,778 42,699
-------- -------- --------- --------
LIABILITIES
Payables:
Due to Pacific Mutual Life Insurance Company.................. 8
Fund shares purchased......................................... 45 150 14
-------- -------- --------- -------
TOTAL LIABILITIES................................................ 8 45 150 14
-------- -------- --------- --------
NET ASSETS....................................................... $73,588 $37,404 $41,628 $42,685
======== ======== ========= =========
<CAPTION>
Equity Growth
Index LT
Variable Variable
Account Account
-------- --------
<S> <C> <C>
ASSETS
Investments in Pacific Select Fund:
Money Market Portfolio (2,876 shares; cost $28,887)...........
Managed Bond Portfolio (3,386 shares; cost $36,019)...........
Government Securities Portolio (518 shares; cost $5,196)......
High Yield Bond Portfolio (1,196 shares; cost $11,127)........
Growth Portfolio (4,360 shares; cost $72,643).................
Equity Income Portfolio (2,284 shares; cost $35,064)..........
Multi-Strategy Portfolio (3,160 shares; cost $39,407).........
International Portfolio (3,349 shares, cost $41,369)..........
Equity Index Portfolio (2,867 shares; cost $37,721)........... $44,351
Growth LT Portfolio (2,097 shares; cost $23,901).............. $27,524
Receivables:
Due from Pacific Mutual Life Insurance Company................ 20 130
Fund shares redeemed..........................................
-------- --------
TOTAL ASSETS..................................................... 44,371 27,654
-------- --------
LIABILITIES
Payables:
Due to Pacific Mutual Life Insurance Company..................
Fund shares purchased......................................... 20 130
-------- --------
TOTAL LIABILITIES................................................ 20 130
-------- --------
NET ASSETS....................................................... $44,351 $27,524
======== ========
</TABLE>
See Notes to Financial Statements.
C-1
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1995 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
High
Money Managed Government Yield
Market Bond Securities Bond
Variable Variable Variable Variable
Account Account Account Account
-------- -------- ---------- ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends...................................................... $ 670 $ 940 $ 134 $ 402
------- ------- ------- -------
NET INVESTMENT INCOME ............................................ 670 940 134 402
------- ------- ------- -------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) from security transactions............ 12 (18) (55) (118)
Net unrealized appreciation on investments..................... 58 2,113 404 677
------- ------- ------- -------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS.................................................. 70 2,095 349 559
------- ------- ------- -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....................................... $ 740 $ 3,035 $ 483 $ 961
======= ======= ======= =======
<CAPTION>
Equity Multi- Inter-
Growth Income Strategy national
Variable Variable Variable Variable
Account Account Account Account
-------- -------- ---------- ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends...................................................... $ 328 $ 268 $ 686 $ 51
------- ------- ------- -------
NET INVESTMENT INCOME............................................. 328 268 686 51
------- ------- ------- -------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) from security transactions............ (735) 48 (14) 102
Net unrealized appreciation on investments..................... 8,672 4,003 4,153 2,553
------- ------- ------- -------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS.................................................. 7,937 4,051 4,139 2,655
------- ------- ------- -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....................................... $ 8,265 $ 4,319 $ 4,825 $ 2,706
======= ======= ======= =======
<CAPTION>
Equity Growth
Index LT
Variable Variable
Account Account
-------- --------
<S> <C> <C>
INVESTMENT INCOME
Dividends...................................................... $ 448 $ 161
------- -------
NET INVESTMENT INCOME (LOSS)...................................... 448 161
------- -------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) from security transactions............ 179 92
Net unrealized appreciation on investments..................... 6,204 3,253
------- -------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS.................................................. 6,383 3,345
------- -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....................................... $ 6,831 $ 3,506
======= =======
</TABLE>
See Notes to Financial Statements.
C-2
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED JUNE 30, 1995
(In thousands)
<TABLE>
<CAPTION>
High
Money Managed Government Yield
Market Bond Securities Bond
Variable Variable Variable Variable
Account Account Account Account
-------- -------- ---------- ---------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income........................................... $ 670 $ 940 $ 134 $ 402
Net realized gain (loss) from security transactions............. 12 (18) (55) (118)
Net unrealized appreciation on investments...................... 58 2,113 404 677
-------- ------- ------- -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....................................... 740 3,035 483 961
-------- ------- ------- -------
INCREASE (DECREASE) IN NET ASSETS FROM
POLICY TRANSACTIONS
Transfer of net premiums........................................ 38,052 4,107 999 2,237
Transfers-policy charges and deductions......................... (1,555) (858) (241) (478)
Transfers in (from other variable accounts)..................... 10,288 6,679 1,403 3,928
Transfers out (to other variable accounts)...................... (53,014) (1,176) (1,005) (2,501)
Transfers-other................................................. (288) (282) (150) (172)
-------- ------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
DERIVED FROM POLICY TRANSACTIONS................................ (6,517) 8,470 1,006 3,014
-------- ------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS............................. (5,777) 11,505 1,489 3,975
NET ASSETS
Beginning of period............................................ 34,596 24,565 3,909 7,379
-------- ------- ------- -------
End of period.................................................. $ 28,819 $36,070 $ 5,398 $11,354
======== ======= ======= =======
<CAPTION>
Equity Multi- Inter-
Growth Income Strategy national
Variable Variable Variable Variable
Account Account Account Account
-------- -------- ---------- ---------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income........................................... $ 328 $ 268 $ 686 $ 51
Net realized gain (loss) from security transactions............. (735) 48 (14) 102
Net unrealized appreciation on investments...................... 8,672 4,003 4,153 2,553
-------- ------- ------- -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....................................... 8,265 4,319 4,825 2,706
-------- ------- ------- -------
INCREASE (DECREASE) IN NET ASSETS FROM
POLICY TRANSACTIONS
Transfer of net premiums........................................ 12,429 7,279 4,070 8,416
Transfers-policy charges and deductions......................... (2,993) (1,199) (1,271) (1,836)
Transfers in (from other variable accounts)..................... 19,263 8,968 3,286 10,761
Transfers out (to other variable accounts)...................... (9,670) (1,580) (886) (7,908)
Transfers-other................................................. (1,123) (605) (567) (608)
-------- ------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
DERIVED FROM POLICY TRANSACTIONS................................ 17,906 12,863 4,632 8,825
-------- ------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS............................. 26,171 17,182 9,457 11,531
NET ASSETS
Beginning of period............................................ 47,417 20,222 32,171 31,154
-------- ------- ------- -------
End of period.................................................. $ 73,588 $37,404 $41,628 $42,685
======== ======= ======= =======
<CAPTION>
Equity Growth
Index LT
Variable Variable
Account Account
-------- --------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income........................................... $ 448 $ 161
Net realized gain (loss) from security transactions............. 179 92
Net unrealized appreciation on investments...................... 6,204 3,253
-------- -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....................................... 6,831 3,506
-------- -------
INCREASE (DECREASE) IN NET ASSETS FROM
POLICY TRANSACTIONS
Transfer of net premiums........................................ 4,524 5,162
Transfers-policy charges and deductions......................... (1,204) (1,032)
Transfers in (from other variable accounts)..................... 5,375 11,253
Transfers out (to other variable accounts)...................... (1,028) (2,403)
Transfers-other................................................. (540) (370)
-------- -------
NET INCREASE (DECREASE) IN NET ASSETS
DERIVED FROM POLICY TRANSACTIONS................................ 7,127 12,610
-------- -------
NET INCREASE (DECREASE) IN NET ASSETS............................. 13,958 16,116
NET ASSETS
Beginning of period............................................ 30,393 11,408
-------- -------
End of period.................................................. $ 44,351 $27,524
======== =======
</TABLE>
See Notes to Financial Statemens.
C-3
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1994
(IN THOUSANDS)
<TABLE>
<CAPTION>
High
Money Managed Government Yield
Market Bond Securities Bond
Variable Variable Variable Variable
Account Account Account Account
-------- -------- ---------- ---------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income........................................... $ 812 $ 1,143 $ 170 $ 472
Net realized gain (loss) from security transactions............. 131 (14) (172) (101)
Net unrealized appreciation (depreciation) on investments....... (68) (2,086) (160) (330)
-------- ------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS....................................... 875 (957) (162) 41
-------- ------- ------- -------
INCREASE (DECREASE) IN NET ASSETS FROM
POLICY TRANSACTIONS
Transfer of net premiums........................................ 53,082 6,795 2,740 2,716
Transfers--policy charges and deductions........................ (3,578) (1,634) (1,212) (748)
Transfers in (from other variable accounts)..................... 47,688 5,550 1,200 4,398
Transfers out (to other variable accounts)...................... (81,555) (1,862) (1,816) (2,395)
Transfers--other................................................ (189) 5 (6) (13)
-------- ------- ------- -------
NET INCREASE IN NET ASSETS
DERIVED FROM POLICY TRANSACTIONS................................ 15,428 8,854 906 3,958
-------- ------- ------- -------
NET INCREASE IN NET ASSETS........................................ 16,303 7,897 744 3,999
NET ASSETS
Beginning of year.............................................. 18,293 16,668 3,165 3,380
-------- ------- ------- -------
End of year.................................................... $ 34,596 $24,565 $ 3,909 $ 7,379
======== ======= ======= =======
<CAPTION>
Equity Multi- Inter-
Growth Income Strategy national
Variable Variable Variable Variable
Account Account Account Account
-------- -------- ---------- ---------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income........................................... $ 4,039 $ 1,838 $ 1,767 $ 1,290
Net realized gain (loss) from security transactions............. 1,075 207 218 831
Net unrealized appreciation (depreciation) on investments....... (10,371) (2,115) (2,374) (2,049)
-------- ------- ------- -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....................................... (5,257) (70) (389) 72
-------- ------- ------- -------
INCREASE (DECREASE) IN NET ASSETS FROM
POLICY TRANSACTIONS
Transfer of net premiums........................................ 21,157 6,781 12,158 11,673
Transfers--policy charges and deductions........................ (5,776) (2,110) (2,364) (2,878)
Transfers in (from other variable accounts)..................... 31,248 6,482 2,983 19,282
Transfers out (to other variable accounts)...................... (28,528) (2,573) (1,864) (8,521)
Transfers--other................................................ 79 46 32 23
-------- ------- ------- -------
NET INCREASE IN NET ASSETS
DERIVED FROM POLICY TRANSACTIONS................................ 18,180 8,626 10,945 19,579
-------- ------- ------- -------
NET INCREASE IN NET ASSETS........................................ 12,923 8,556 10,556 19,651
NET ASSETS
Beginning of year.............................................. 34,494 11,666 21,615 11,503
-------- ------- ------- -------
End of year.................................................... $ 47,417 $20,222 $32,171 $31,154
======== ======= ======= =======
<CAPTION>
Equity Growth
Index LT
Variable Variable
Account Account
-------- --------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income........................................... $ 718 $ 174
Net realized gain (loss) from security transactions............. 342 56
Net unrealized appreciation (depreciation) on investments....... (841) 369
-------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS....................................... 219 599
-------- -------
INCREASE (DECREASE) IN NET ASSETS FROM
POLICY TRANSACTIONS
Transfer of net premiums........................................ 10,776 3,920
Transfers--policy charges and deductions........................ (2,180) (684)
Transfers in (from other variable accounts)..................... 4,498 8,962
Transfers out (to other variable accounts)...................... (2,407) (1,436)
Transfers--other................................................ 44 47
-------- -------
NET INCREASE IN NET ASSETS
DERIVED FROM POLICY TRANSACTIONS................................ 10,731 10,809
-------- -------
NET INCREASE IN NET ASSETS........................................ 10,950 11,408
NET ASSETS
Beginning of year.............................................. 19,443
-------- -------
End of year.................................................... $ 30,393 $11,408
======== =======
</TABLE>
See Notes to Financial Statemens.
C-4
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The Pacific Select Exec Separate Account (the "Separate Account") is
registered as a unit investment trust under the Investment Company Act of 1940,
as amended, and is currently comprised of ten subaccounts called Variable
Accounts: the Money Market Variable Account, the Managed Bond Variable Account,
the Government Securities Variable Account, the High Yield Bond Variable
Account, the Growth Variable Account, the Equity Income Variable Account, the
Multi-Strategy Variable Account, the International Variable Account, the Equity
Index Variable Account, and the Growth LT Variable Account. 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 Separate Account was established by Pacific Mutual Life Insurance
Company ("Pacific Mutual") on May 12, 1988 and commenced operations on November
22, 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 Mutual. The assets of the Separate Account will not
be charged with any liabilities arising out of any other business conducted by
Pacific Mutual, but the obligations of the Separate Account, including benefits
related to variable life insurance, are obligations of Pacific Mutual.
A. Valuation of Investments
Investments in shares of the Fund are valued at the reported net asset
values of the respective portfolios.
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 Mutual, 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 Mutual with respect to
the operations of the Separate Account.
2. DIVIDENDS
During 1995, the Fund has declared dividends for each 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
With respect to variable life insurance policies funded by the Separate
Account, Pacific Mutual makes certain deductions from premiums for sales load
and state premium taxes before amounts are allocated to the Separate Account.
Pacific Mutual also makes certain deductions from the net assets of each
Variable Account for the mortality and expense risks Pacific Mutual assumes,
adminsitrative expenses, cost of insurance, charges for optional benefits and
any sales and underwriting surrender charges. The operating expenses of the
Separate Account are paid by Pacific Mutual.
4. RELATED PARTY AGREEMENT
Pacific Equities Network, an indirect subsidiary of Pacific Mutual, is the
principal underwriter of variable life insurance policies funded by interests
in the Separate Account, and is compensated by Pacific Mutual.
C-5
<PAGE>
PACIFIC SELECT EXEC SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
5. SELECTED ACCUMULATION UNIT**INFORMATION
Selected accumulation unit information for the period ended June 30, 1995
were as follows:
<TABLE>
<CAPTION>
High
Money Managed Government Yield
Market Bond Securities Bond Growth
Variable Variable Variable Variable Variable
Account Account Account Account Account
-------- -------- ---------- -------- --------
<S> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE:
Beginning $ 13.76 $ 16.68 $ 16.23 $ 18.29 $ 19.00
======= ======= ======= ======= =======
Ending $ 14.14 $ 18.51 $ 18.02 $ 20.26 $ 21.63
======= ======= ======= ======= =======
Number of Units Outstanding
at End of Period 2,038,244 1,948,980 299,619 560,378 3,402,348
<CAPTION>
Equity Multi- Inter- Equity Growth
Income Strategy national Index LT
Variable Variable Variable Variable Variable
Account Account Account Account Account
-------- -------- ---------- -------- --------
<S> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE:
Beginning $ 18.01 $ 17.24 $ 14.07 $ 14.76 $ 11.32
======= ======= ======= ======= =======
Ending $ 21.18 $ 19.72 $ 15.05 $ 17.74 $ 13.47
======= ======= ======= ======= =======
Number of Units Outstanding
at End of Period 1,765,790 2,110,662 2,836,821 2,500,696 2,043,169
</TABLE>
- ------------
** Accumulation Unit: unit of measure used to calculate the value of a Contract
Owner's interest in a Variable Account during the Accumulation Period.
C-6
