<PAGE> 1
A N N U A L R E P O R T
D E C E M B E R 3 1 , 1 9 9 5
---------------------------------------------
WRL SERIES
ANNUITY
ACCOUNT
---------------------------------------------
WESTERN RESERVE LIFE
ASSURANCE CO. OF OHIO
(FILM SUPPLIED)
February 1996
ACC00002-A (2/96)
<PAGE> 2
- --------------------------------------------------------------------------------
T A B L E O F C O N T E N T S
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
<S> <C>
Reports of Independent Accountants.................... 2
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
Financial Statements:
Money Market Sub-Account..................... 4
Bond Sub-Account............................. 6
Growth Sub-Account........................... 8
Short-to-Intermediate Government
Sub-Account............................... 10
Global Sub-Account........................... 12
Equity-Income Sub-Account.................... 14
Emerging Growth Sub-Account.................. 16
Aggressive Growth Sub-Account................ 18
Balanced Sub-Account......................... 20
Utility Sub-Account.......................... 22
Tactical Asset Allocation Sub-Account........ 24
Notes to Financial Statements..................... 26
BELLWETHER AND CONQUEROR
Financial Statements:
Money Market Sub-Account..................... 28
Bond Sub-Account............................. 30
Growth Sub-Account........................... 32
Short-to-Intermediate Government
Sub-Account............................... 34
Global Sub-Account........................... 36
Equity-Income Sub-Account.................... 38
Emerging Growth Sub-Account.................. 40
Aggressive Growth Sub-Account................ 42
Balanced Sub-Account......................... 44
Utility Sub-Account.......................... 46
Tactical Asset Allocation Sub-Account........ 48
Notes to Financial Statements..................... 50
</TABLE>
<PAGE> 3
This page is intentionally left blank.
1
<PAGE> 4
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of Western Reserve Life Assurance Co. of Ohio and
Contract Owners of the WRL Series Annuity Account -- WRL Freedom Variable
Annuity and WRL Freedom Attainer Contracts
In our opinion, the accompanying statements of assets, liabilities and
equity accounts and the related statements of operations and of changes in
equity accounts and the selected per unit data and ratios present fairly, in all
material respects, the financial position of the Money Market, Bond, Growth,
Short-to-Intermediate Government, Global, Equity-Income, Emerging Growth,
Aggressive Growth, Balanced, Utility and Tactical Asset Allocation Sub-Accounts
of the WRL Freedom Variable Annuity and WRL Freedom Attainer Contracts of the
WRL Series Annuity Account (a separate account of Western Reserve Life Assurance
Co. of Ohio, hereafter referred to as the "Annuity Account") at December 31,
1995, the results of each of their operations, the changes in each of their
equity accounts and the selected per unit data and ratios for each of the
periods indicated, in conformity with generally accepted accounting principles.
These financial statements and selected per unit data and ratios (hereafter
referred to as "financial statements") are the responsibility of the Annuity
Account's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Kansas City, Missouri
January 31, 1996
- --------------------------------------------------------------------------------
2
<PAGE> 5
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of Western Reserve Life Assurance Co. of Ohio and
Contract Owners of the WRL Series Annuity Account -- WRL Freedom Bellwether and
WRL Freedom Conqueror Contracts
In our opinion, the accompanying statements of assets, liabilities and
equity accounts and the related statements of operations and of changes in
equity accounts and the selected per unit data and ratios present fairly, in all
material respects, the financial position of the Money Market, Bond, Growth,
Short-to-Intermediate Government, Global, Equity-Income, Emerging Growth,
Aggressive Growth, Balanced, Utility and Tactical Asset Allocation Sub-Accounts
of the WRL Freedom Bellwether and WRL Freedom Conqueror Contracts of the WRL
Series Annuity Account (a separate account of Western Reserve Life Assurance Co.
of Ohio, hereafter referred to as the "Annuity Account") at December 31, 1995,
the results of each of their operations, the changes in each of their equity
accounts and the selected per unit data and ratios for each of the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and selected per unit data and ratios (hereafter referred
to as "financial statements") are the responsibility of the Annuity Account's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Kansas City, Missouri
January 31, 1996
- --------------------------------------------------------------------------------
3
<PAGE> 6
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
MONEY MARKET SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Money Market Portfolio
(41,674,159.180 shares;
cost $ 41,674,159)................ $ 41,674,159
Accrued transfers from (to)
depositor-net....................... (78,642)
-----------------
Total assets...................... 41,595,517
-----------------
LIABILITIES:............................ 0
-----------------
Total net assets.................. $ 41,595,517
=====================
EQUITY ACCOUNTS:
Contract Owners' equity:
Money Market sub-account
(3,249,712.195690 units;
$ 12.799754 unit value)........... $ 41,595,517
-----------------
Total equity...................... $ 41,595,517
=====================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income........................ $ 2,212,551
Capital gain distributions............. 0
-----------------
2,212,551
EXPENSES:
Mortality and expense risk charges..... 524,383
-----------------
Net investment income (loss)......... 1,688,168
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from
securities transactions.............. 0
Change in unrealized appreciation
(depreciation)....................... 0
-----------------
Net gain (loss) on investments....... 0
-----------------
Net increase (decrease) in equity
accounts resulting from
operations....................... $ 1,688,168
=====================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 1,688,168 $ 1,004,396
Net gain (loss) on investments........................................................ 0 0
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 1,688,168 1,004,396
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... (5,902,965) 28,604,776
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 29,037 28,002
Policy loans........................................................................ 519 760
Surrender benefits.................................................................. 8,795,944 6,957,926
Death benefits...................................................................... 682,261 247,007
----------------- -----------------
9,507,761 7,233,695
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... (15,410,726) 21,371,081
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... (13,722,558) 22,375,477
EQUITY ACCOUNTS:
Beginning of period................................................................... 55,318,075 32,942,598
----------------- -----------------
End of period......................................................................... $ 41,595,517 $ 55,318,075
===================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
4
<PAGE> 7
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
MONEY MARKET SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
-----------------------------------------------------------------------------
1995 1994 1993 1992 1991
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 12.29 $ 12.03 $ 11.89 $ 11.68 $ 11.24
Income from operations:
Net investment income (loss)................ .51 .26 .14 .21 .44
Net realized and unrealized
gain (loss) on investments................ .00 .00 .00 .00 .00
-------- -------- -------- -------- --------
Total income (loss) from operations....... .51 .26 .14 .21 .44
-------- -------- -------- -------- --------
Accumulation unit value, end of period.......... $ 12.80 $ 12.29 $ 12.03 $ 11.89 $ 11.68
========= ========= ========= ========= =========
Total return.................................... 4.12% 2.22% 1.16% 1.77% 3.97%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 41,596 $ 55,318 $ 32,943 $ 41,133 $ 29,003
Ratio of net investment income (loss)
to average net assets....................... 4.03% 2.28% 1.15% 1.73% 3.80%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
5
<PAGE> 8
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
BOND SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Bond Portfolio
(4,763,081.349 shares;
cost $ 54,107,222).................. $ 54,038,141
Accrued transfers from (to)
depositor - net....................... 71,024
------------------
Total assets........................ 54,109,165
------------------
LIABILITIES:.............................. 0
------------------
Total net assets.................... $ 54,109,165
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Bond sub-account
(2,954,875.125798 units;
$ 18.311828 unit value)............. $ 54,109,165
------------------
Total equity........................ $ 54,109,165
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 3,087,548
Capital gain distributions............... 0
-----------------
3,087,548
EXPENSES:
Mortality and expense risk charges....... 623,991
-----------------
Net investment income (loss)........... 2,463,557
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... (1,060,268)
Change in unrealized appreciation
(depreciation)......................... 8,234,058
-----------------
Net gain (loss) on investments......... 7,173,790
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 9,637,347
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss)........................................................... $ 2,463,557 $ 2,616,153
Net gain (loss) on investments......................................................... 7,173,790 (7,794,071)
---------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations............................................................ 9,637,347 (5,177,918)
---------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed).................................................... 2,542,773 (9,743,986)
---------------- -----------------
Less cost of units redeemed:
Administrative charges............................................................... 44,441 48,686
Policy loans......................................................................... 22,037 4,160
Surrender benefits................................................................... 4,815,578 4,058,706
Death benefits....................................................................... 381,877 257,005
---------------- -----------------
5,263,933 4,368,557
---------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions.......................................................... (2,721,160) (14,112,543)
---------------- -----------------
Net increase (decrease) in equity accounts........................................... 6,916,187 (19,290,461)
EQUITY ACCOUNTS:
Beginning of period.................................................................... 47,192,978 66,483,439
---------------- -----------------
End of period.......................................................................... $ 54,109,165 $ 47,192,978
================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
6
<PAGE> 9
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
BOND SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
--------------------------------------------------------------------------
1995 1994 1993 1992 1991
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 15.08 $ 16.40 $ 14.65 $ 13.89 $ 11.83
Income from operations:
Net investment income (loss)................ .83 .72 1.67 1.16 1.04
Net realized and unrealized
gain (loss) on investments................ 2.40 (2.04) .08 (.40) 1.02
-------- -------- -------- -------- --------
Total income (loss) from operations....... 3.23 (1.32) 1.75 .76 2.06
-------- -------- -------- -------- --------
Accumulation unit value, end of period.......... $ 18.31 $ 15.08 $ 16.40 $ 14.65 $ 13.89
========= ========= ========= ========= =========
Total return.................................... 21.46% (8.10)% 11.97% 5.44% 17.44%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 54,109 $ 47,193 $ 66,483 $ 52,234 $ 19,312
Ratio of net investment income (loss)
to average net assets....................... 4.94% 4.69% 10.94% 8.18% 8.31%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
7
<PAGE> 10
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Growth Portfolio
(16,827,386.954 shares;
cost $ 438,588,789)................. $ 532,767,521
Accrued transfers from (to)
depositor - net....................... (121,483)
-----------------
Total assets........................ 532,646,038
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 532,646,038
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Growth sub-account
(18,708,617.688150 units;
$ 28.470625 unit value)............. $ 532,646,038
-----------------
Total equity........................ $ 532,646,038
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 2,488,933
Capital gain distributions............... 48,647,538
-----------------
51,136,471
EXPENSES:
Mortality and expense risk charges....... 5,775,649
-----------------
Net investment income (loss)........... 45,360,822
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 4,749,510
Change in unrealized appreciation
(depreciation)......................... 120,164,496
-----------------
Net gain (loss) on investments......... 124,914,006
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 170,274,828
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 45,360,822 $ (1,301,894)
Net gain (loss) on investments........................................................ 124,914,006 (46,374,872)
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 170,274,828 (47,676,766)
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... (5,005,493) (80,247,889)
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 506,610 579,977
Policy loans........................................................................ 248,376 117,526
Surrender benefits.................................................................. 39,094,973 33,824,544
Death benefits...................................................................... 2,653,999 2,696,139
----------------- -----------------
42,503,958 37,218,186
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... (47,509,451) (117,466,075)
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... 122,765,377 (165,142,841)
EQUITY ACCOUNTS:
Beginning of period................................................................... 409,880,661 575,023,502
----------------- -----------------
End of period......................................................................... $ 532,646,038 $ 409,880,661
=================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
8
<PAGE> 11
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
----------------------------------------------------------------
1995 1994 1993 1992
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 19.60 $ 21.64 $ 21.07 $ 20.85
Income from operations:
Net investment income (loss)................ 2.35 (.06) .20 .80
Net realized and unrealized
gain (loss) on investments................ 6.52 (1.98) .37 (.58)
--------- --------- --------- ---------
Total income (loss) from operations....... 8.87 (2.04) .57 .22
--------- --------- --------- ---------
Accumulation unit value, end of period.......... $ 28.47 $ 19.60 $ 21.64 $ 21.07
========== ========== ========== ==========
Total return.................................... 45.29% (9.45)% 2.69% 1.07%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 532,646 $ 409,881 $ 575,024 $ 555,268
Ratio of net investment income (loss)
to average net assets....................... 9.81% (.28)% .99% 4.07%
<CAPTION>
1991
---------
<S> <C>
Accumulation unit value, beginning of period.... $ 13.21
Income from operations:
Net investment income (loss)................ 1.61
Net realized and unrealized
gain (loss) on investments................ 6.03
---------
Total income (loss) from operations....... 7.64
---------
Accumulation unit value, end of period.......... $ 20.85
==========
Total return.................................... 57.82%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 284,934
Ratio of net investment income (loss)
to average net assets....................... 9.65%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
9
<PAGE> 12
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
SHORT-TO-INTERMEDIATE GOVERNMENT SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Short-to-Intermediate Government
Portfolio
(875,983.121 shares;
cost $ 8,891,603)................... $ 9,124,337
Accrued transfers from (to)
depositor - net....................... 88,500
-----------------
Total assets........................ 9,212,837
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 9,212,837
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Short-to-Intermediate Government
sub-account
(806,119.346605 units;
$ 11.428626 unit value)............. $ 9,212,837
-----------------
Total equity........................ $ 9,212,837
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 488,938
Capital gain distributions............... 0
-----------------
488,938
EXPENSES:
Mortality and expense risk charges....... 104,557
-----------------
Net investment income (loss)........... 384,381
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... (41,529)
Change in unrealized appreciation
(depreciation)......................... 612,756
-----------------
Net gain (loss) on investments......... 571,227
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 955,608
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 384,381 $ 330,663
Net gain (loss) on investments........................................................ 571,227 (502,248)
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 955,608 (171,585)
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... 1,015,750 (769,424)
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 5,833 4,450
Policy loans........................................................................ 0 0
Surrender benefits.................................................................. 369,692 297,964
Death benefits...................................................................... 218,964 55,618
----------------- -----------------
594,489 358,032
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... 421,261 (1,127,456)
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... 1,376,869 (1,299,041)
Depositor's equity contribution (redemption).......................................... 0 (875,032)
EQUITY ACCOUNTS:
Beginning of period................................................................... 7,835,968 10,010,041
----------------- -----------------
End of period......................................................................... $ 9,212,837 $ 7,835,968
=================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
10
<PAGE> 13
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
SHORT-TO-INTERMEDIATE GOVERNMENT SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
---------------------------------------------------------
1995 1994 1993 1992+
------- ------- -------- -------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 10.19 $ 10.36 $ 10.04 $ 10.00
Income from operations:
Net investment income (loss)................ .49 .37 .21 .01
Net realized and unrealized
gain (loss) on investments................ .75 (.54) .11 .03
------- ------- -------- -------
Total income (loss) from operations....... 1.24 (.17) .32 .04
------- ------- -------- -------
Accumulation unit value, end of period.......... $ 11.43 $ 10.19 $ 10.36 $ 10.04
======== ======== ========= ========
Total return.................................... 12.13% (1.66)% 3.28% .36%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 9,213 $ 7,836 $ 10,010 $ 853
Ratio of net investment income (loss)
to average net assets....................... 4.59% 3.67% 2.08% .14%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was December 3, 1992. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
11
<PAGE> 14
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
GLOBAL SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Global Portfolio
(9,113,533.860 shares;
cost $ 124,272,023).................. $ 141,402,512
Accrued transfers from (to)
depositor - net........................ 22,545
---------------
Total assets......................... 141,425,057
---------------
LIABILITIES:............................... 0
---------------
Total net assets..................... $ 141,425,057
==================
EQUITY ACCOUNTS:
Contract Owners' equity:
Global sub-account
(8,682,450.905897 units;
$ 16.288610 unit value).............. $ 141,425,057
---------------
Total equity......................... $ 141,425,057
==================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31, 1995
INVESTMENT INCOME:
<S> <C>
Dividend income.......................... $ 164,016
Capital gain distributions............... 5,345,746
---------------
5,509,762
EXPENSES:
Mortality and expense risk charges....... 1,664,224
---------------
Net investment income (loss)........... 3,845,538
---------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 5,914,444
Change in unrealized appreciation
(depreciation)......................... 15,487,085
---------------
Net gain (loss) on investments......... 21,401,529
---------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 25,247,067
==================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss)............................................................ $ 3,845,538 $ 4,136,089
Net gain (loss) on investments.......................................................... 21,401,529 (6,392,393)
--------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations............................................................. 25,247,067 (2,256,304)
--------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)..................................................... (18,151,534) 84,482,429
--------------- -----------------
Less cost of units redeemed:
Administrative charges................................................................ 125,566 106,615
Policy loans.......................................................................... 93,720 58,910
Surrender benefits.................................................................... 9,634,079 6,378,193
Death benefits........................................................................ 522,441 298,115
--------------- -----------------
10,375,806 6,841,833
--------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions........................................................... (28,527,340) 77,640,596
--------------- -----------------
Net increase (decrease) in equity accounts............................................ (3,280,273) 75,384,292
Depositor's equity contribution (redemption)............................................ 0 (343,518)
EQUITY ACCOUNTS:
Beginning of period..................................................................... 144,705,330 69,664,556
--------------- -----------------
End of period........................................................................... $ 141,425,057 $ 144,705,330
================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
12
<PAGE> 15
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
GLOBAL SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
-------------------------------------------------------------
1995 1994 1993 1992+
--------- --------- -------- -------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 13.40 $ 13.54 $ 10.15 $ 10.00
Income from operations:
Net investment income (loss)................ .42 .45 .16 (.01)
Net realized and unrealized
gain (loss) on investments................ 2.47 (.59) 3.23 .16
--------- --------- -------- -------
Total income (loss) from operations....... 2.89 (.14) 3.39 .15
--------- --------- -------- -------
Accumulation unit value, end of period.......... $ 16.29 $ 13.40 $ 13.54 $ 10.15
========== ========== ========= ========
Total return.................................... 21.53% (0.99)% 33.34% 1.52%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 141,425 $ 144,705 $ 69,665 $ 254
Ratio of net investment income (loss)
to average net assets....................... 2.89% 3.40% 1.40% (.10)%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was December 3, 1992. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
13
<PAGE> 16
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
EQUITY-INCOME SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Equity-Income Portfolio
(9,044,106.612 shares;
cost $ 102,470,344)................. $ 116,347,336
Accrued transfers from (to)
depositor - net....................... 27,054
-----------------
Total assets........................ 116,374,390
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 116,374,390
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Equity-Income sub-account
(8,550,696.558637 units;
$ 13.609931 unit value)............. $ 116,374,390
-----------------
Total equity........................ $ 116,374,390
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 3,065,970
Capital gain distributions............... 3,036,609
-----------------
6,102,579
EXPENSES:
Mortality and expense risk charges....... 1,272,656
-----------------
Net investment income (loss)........... 4,829,923
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 1,372,918
Change in unrealized appreciation
(depreciation)......................... 14,883,128
-----------------
Net gain (loss) on investments......... 16,256,046
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 21,085,969
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss)......................................................... $ 4,829,923 $ 1,076,841
Net gain (loss) on investments....................................................... 16,256,046 (2,335,078)
---------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations.......................................................... 21,085,969 (1,258,237)
---------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed).................................................. 13,068,987 44,646,762
---------------- -----------------
Less cost of units redeemed:
Administrative charges............................................................. 78,077 58,295
Policy loans....................................................................... 76,572 37,072
Surrender benefits................................................................. 5,988,610 3,214,649
Death benefits..................................................................... 244,625 310,619
---------------- -----------------
6,387,884 3,620,635
---------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions........................................................ 6,681,103 41,026,127
---------------- -----------------
Net increase (decrease) in equity accounts......................................... 27,767,072 39,767,890
Depositor's equity contribution (redemption)......................................... 0 (400,244)
EQUITY ACCOUNTS:
Beginning of period.................................................................. 88,607,318 49,239,672
---------------- -----------------
End of period........................................................................ $ 116,374,390 $ 88,607,318
================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
14
<PAGE> 17
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
EQUITY-INCOME SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
--------------------------------------------
1995 1994 1993+
--------- -------- --------
<S> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 11.06 $ 11.25 $ 10.00
Income from operations:
Net investment income (loss)................ .59 .16 .16
Net realized and unrealized
gain (loss) on investments................ 1.96 (.35) 1.09
--------- -------- --------
Total income (loss) from operations....... 2.55 (.19) 1.25
--------- -------- --------
Accumulation unit value, end of period.......... $ 13.61 $ 11.06 $ 11.25
========== ========= =========
Total return.................................... 23.11% (1.77)% 12.54%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 116,374 $ 88,607 $ 49,240
Ratio of net investment income (loss)
to average net assets....................... 4.74% 1.43% 1.53%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was March 1, 1993. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
15
<PAGE> 18
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
EMERGING GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Emerging Growth Portfolio
(7,127,118.212 shares;
cost $ 90,041,427).................. $ 115,777,426
Accrued transfers from (to)
depositor - net....................... 19,882
-----------------
Total assets........................ 115,797,308
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 115,797,308
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Emerging Growth sub-account
(7,059,546.757253 units;
$ 16.402938 unit value)............. $ 115,797,308
-----------------
Total equity........................ $ 115,797,308
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 20,806
Capital gain distributions............... 4,787,424
-----------------
4,808,230
EXPENSES:
Mortality and expense risk charges....... 1,218,578
-----------------
Net investment income (loss)........... 3,589,652
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 2,139,113
Change in unrealized appreciation
(depreciation)......................... 29,875,610
-----------------
Net gain (loss) on investments......... 32,014,723
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 35,604,375
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss)........................................................ $ 3,589,652 $ (971,695)
Net gain (loss) on investments...................................................... 32,014,723 (6,590,759)
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations......................................................... 35,604,375 (7,562,454)
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................. 4,113,982 37,504,633
----------------- -----------------
Less cost of units redeemed:
Administrative charges............................................................ 87,206 70,986
Policy loans...................................................................... 68,066 50,329
Surrender benefits................................................................ 6,989,309 4,504,748
Death benefits.................................................................... 256,599 175,915
----------------- -----------------
7,401,180 4,801,978
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions....................................................... (3,287,198) 32,702,655
----------------- -----------------
Net increase (decrease) in equity accounts........................................ 32,317,177 25,140,201
Depositor's equity contribution (redemption)........................................ 0 (453,964)
EQUITY ACCOUNTS:
Beginning of period................................................................. 83,480,131 58,793,894
----------------- -----------------
End of period....................................................................... $ 115,797,308 $ 83,480,131
=================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
16
<PAGE> 19
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
EMERGING GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
--------------------------------------------
1995 1994 1993+
--------- -------- --------
<S> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 11.31 $ 12.37 $ 10.00
Income from operations:
Net investment income (loss)................ .51 (.13) (.12)
Net realized and unrealized
gain (loss) on investments................ 4.58 (.93) 2.49
--------- -------- --------
Total income (loss) from operations....... 5.09 (1.06) 2.37
--------- -------- --------
Accumulation unit value, end of period.......... $ 16.40 $ 11.31 $ 12.37
========== ========= =========
Total return.................................... 44.97% (8.51)% 23.67%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 115,797 $ 83,480 $ 58,794
Ratio of net investment income (loss)
to average net assets....................... 3.68% (1.21)% (1.08)%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was March 1, 1993. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
17
<PAGE> 20
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
AGGRESSIVE GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Aggressive Growth Portfolio
(4,955,328.270 shares;
cost $ 62,600,410)................... $ 65,659,875
Accrued transfers from (to)
depositor - net........................ 6,469
---------------
Total assets......................... 65,666,344
---------------
LIABILITIES:............................... 0
---------------
Total net assets..................... $ 65,666,344
==================
EQUITY ACCOUNTS:
Contract Owners' equity:
Aggressive Growth sub-account
(4,919,998.493700 units;
$ 13.346822 unit value).............. $ 65,666,344
---------------
Total equity......................... $ 65,666,344
==================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 231
Capital gain distributions............... 1,733,749
---------------
1,733,980
EXPENSES:
Mortality and expense risk charges....... 613,964
---------------
Net investment income (loss)........... 1,120,016
---------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 7,737,806
Change in unrealized appreciation
(depreciation)......................... 2,288,562
---------------
Net gain (loss) on investments......... 10,026,368
---------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 11,146,384
==================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994*
<S> <C> <C>
OPERATIONS:
Net investment income (loss)........................................................... $ 1,120,016 $ (80,782)
Net gain (loss) on investments......................................................... 10,026,368 778,869
--------------- ------------------
Net increase (decrease) in equity accounts
resulting from operations............................................................ 11,146,384 698,087
--------------- ------------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed).................................................... 39,257,963 17,820,479
--------------- ------------------
Less cost of units redeemed:
Administrative charges............................................................... 33,386 5,692
Policy loans......................................................................... 6,188 13,935
Surrender benefits................................................................... 2,866,706 187,507
Death benefits....................................................................... 113,112 16,688
--------------- ------------------
3,019,392 223,822
--------------- ------------------
Increase (decrease) in equity accounts from
capital unit transactions.......................................................... 36,238,571 17,596,657
--------------- ------------------
Net increase (decrease) in equity accounts........................................... 47,384,955 18,294,744
Depositor's equity contribution (redemption)........................................... (273,355) 260,000
EQUITY ACCOUNTS:
Beginning of period.................................................................... 18,554,744 0
--------------- ------------------
End of period.......................................................................... $ 65,666,344 $ 18,554,744
================== ====================
</TABLE>
* The inception date of this sub-account was March 1, 1994.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
18
<PAGE> 21
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
AGGRESSIVE GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
-------------------------------
1995 1994+
-------- -------------
<S> <C> <C>
Accumulation unit value, beginning of period.... $ 9.79 $ 10.00
Income from operations:
Net investment income (loss)................ .29 (.08)
Net realized and unrealized
gain (loss) on investments................ 3.27 (.13)
-------- -------------
Total income (loss) from operations....... 3.56 (.21)
-------- -------------
Accumulation unit value, end of period.......... $ 13.35 $ 9.79
========= ==============
Total return.................................... 36.31% (2.08)%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 65,666 $ 18,555
Ratio of net investment income (loss)
to average net assets....................... 2.28% (.87)%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was March 1, 1994. The total return and
ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
19
<PAGE> 22
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
BALANCED SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Balanced Portfolio
(1,062,225.463 shares;
cost $ 10,392,463).................. $ 11,296,250
Accrued transfers from (to) depositor -
net................................. 46,390
-----------------
Total assets........................ 11,342,640
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 11,342,640
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Balanced sub-account
(1,005,549.334847 units;
$ 11.060063 unit value)............. $ 11,121,439
Depositors' equity:
Balanced sub-account
(20,000.000000 units;
$ 11.060063 unit value)............. 221,201
-----------------
Total equity........................ $ 11,342,640
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 392,147
Capital gain distributions............... 0
-----------------
392,147
EXPENSES:
Mortality and expense risk charges....... 119,413
-----------------
Net investment income (loss)........... 272,734
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... (73,146)
Change in unrealized appreciation
(depreciation)......................... 1,427,476
-----------------
Net gain (loss) on investments......... 1,354,330
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 1,627,064
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994*
<S> <C> <C>
OPERATIONS:
Net investment income (loss)......................................................... $ 272,734 $ 119,119
Net gain (loss) on investments....................................................... 1,354,330 (551,576)
----------------- ------------------
Net increase (decrease) in equity accounts
resulting from operations.......................................................... 1,627,064 (432,457)
----------------- ------------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed).................................................. 1,328,562 9,787,082
----------------- ------------------
Less cost of units redeemed:
Administrative charges............................................................. 7,018 2,320
Policy loans....................................................................... 2,452 0
Surrender benefits................................................................. 967,365 157,239
Death benefits..................................................................... 15,181 16,036
----------------- ------------------
992,016 175,595
----------------- ------------------
Increase (decrease) in equity accounts from
capital unit transactions........................................................ 336,546 9,611,487
----------------- ------------------
Net increase (decrease) in equity accounts......................................... 1,963,610 9,179,030
Depositor's equity contribution (redemption)......................................... 0 200,000
EQUITY ACCOUNTS:
Beginning of period................................................................ 9,379,030 0
----------------- ------------------
End of period...................................................................... $ 11,342,640 $ 9,379,030
=================== ====================
</TABLE>
* The inception date of this sub-account was March 1, 1994.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
20
<PAGE> 23
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
BALANCED SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
-------------------------
1995 1994+
-------- -------
<S> <C> <C>
Accumulation unit value, beginning of period.... $ 9.35 $ 10.00
Income from operations:
Net investment income (loss)................ .29 .21
Net realized and unrealized
gain (loss) on investment................. 1.42 (.86)
-------- -------
Total income (loss) from operations....... 1.71 (.65)
-------- -------
Accumulation unit value, end of period.......... $ 11.06 $ 9.35
========= ========
Total return.................................... 18.31% (6.52)%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 11,343 $ 9,379
Ratio of net investment income (loss)
to average net assets....................... 2.85% 2.19%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date for this sub-account was March 1, 1994. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
21
<PAGE> 24
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
UTILITY SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Utility Portfolio
(1,068,985.043 shares;
cost $ 10,790,356).................. $ 11,891,030
Accrued transfers from (to)
depositor - net....................... (717)
-----------------
Total assets........................ 11,890,313
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 11,890,313
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Utility sub-account
(995,802.519903 units;
$ 11.705339 unit value)............. $ 11,656,206
Depositors' equity:
Utility sub-account
(20,000.000000 units;
$ 11.705339 unit value)............. 234,107
-----------------
Total equity........................ $ 11,890,313
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 395,129
Capital gain distributions............... 89,266
-----------------
484,395
EXPENSES:
Mortality and expense risk charges....... 109,747
-----------------
Net investment income (loss)........... 374,648
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 184,548
Change in unrealized appreciation
(depreciation)......................... 1,290,359
-----------------
Net gain (loss) on investments......... 1,474,907
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 1,849,555
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994*
<S> <C> <C>
OPERATIONS:
Net investment income (loss)...................................................... $ 374,648 $ 96,446
Net gain (loss) on investments.................................................... 1,474,907 (215,857)
----------------- -------------------
Net increase (decrease) in equity accounts
resulting from operations....................................................... 1,849,555 (119,411)
----------------- -------------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)............................................... 5,047,279 5,527,578
----------------- -------------------
Less cost of units redeemed:
Administrative charges.......................................................... 5,178 1,365
Policy loans.................................................................... 3,519 0
Surrender benefits.............................................................. 491,819 84,844
Death benefits.................................................................. 12,014 15,949
----------------- -------------------
512,530 102,158
----------------- -------------------
Increase (decrease) in equity accounts from
capital unit transactions..................................................... 4,534,749 5,425,420
----------------- -------------------
Net increase (decrease) in equity accounts...................................... 6,384,304 5,306,009
Depositor's equity contribution (redemption)...................................... 0 200,000
EQUITY ACCOUNTS:
Beginning of period............................................................... 5,506,009 0
----------------- -------------------
End of period..................................................................... $ 11,890,313 $ 5,506,009
=================== ====================
</TABLE>
* The inception date of this sub-account was March 1, 1994.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
22
<PAGE> 25
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
UTILITY SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
-----------------------------
1995 1994+
-------- -----------
<S> <C> <C>
Accumulation unit value, beginning of period.... $ 9.46 $ 10.00
Income from operations:
Net investment income (loss)................ .45 .32
Net realized and unrealized
gain (loss) on investment................. 1.80 (.86)
-------- -----------
Total income (loss) from operations....... 2.25 (.54)
-------- -----------
Accumulation unit value, end of period.......... $ 11.71 $ 9.46
========= =============
Total return.................................... 23.70% (5.37)%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 11,890 $ 5,506
Ratio of net investment income (loss)
to average net assets....................... 4.26% 3.39%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date for this sub-account was March 1, 1994. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
23
<PAGE> 26
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
TACTICAL ASSET ALLOCATION SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Tactical Asset Allocation Portfolio
(3,043,449.777 shares;
cost $ 32,640,869).................. $ 34,976,238
Accrued transfers from (to)
depositor - net....................... (66,294)
-----------------
Total assets........................ 34,909,944
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 34,909,944
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Tactical Asset Allocation
sub-account (2,943,255.419068 units;
$ 11.860997 unit value)............. $ 34,909,944
-----------------
Total equity........................ $ 34,909,944
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
PERIOD ENDED
INVESTMENT INCOME: DECEMBER 31, 1995*
<S> <C>
Dividend income......................... $ 710,681
Capital gain distributions.............. 634,971
------------------
1,345,652
EXPENSES:
Mortality and expense risk charges...... 258,372
------------------
Net investment income (loss).......... 1,087,280
------------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions.......................... 258,822
Change in unrealized appreciation
(depreciation)........................ 2,335,369
------------------
Net gain (loss) on investments........ 2,594,191
------------------
Net increase (decrease) in equity
accounts resulting from
operations........................ $ 3,681,471
====================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
PERIOD ENDED
DECEMBER 31, 1995*
<S> <C>
OPERATIONS:
Net investment income (loss)................................................................................. $ 1,087,280
Net gain (loss) on investments............................................................................... 2,594,191
------------------
Net increase (decrease) in equity accounts
resulting from operations.................................................................................. 3,681,471
------------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed).......................................................................... 32,279,325
------------------
Less cost of units redeemed:
Administrative charges..................................................................................... 10,562
Policy loans............................................................................................... 34,893
Surrender benefits......................................................................................... 983,608
Death benefits............................................................................................. 14,621
------------------
1,043,684
------------------
Increase (decrease) in equity accounts from
capital unit transactions................................................................................ 31,235,641
------------------
Net increase (decrease) in equity accounts................................................................. 34,917,112
Depositor's equity contribution (redemption)............................................................... (7,168)
EQUITY ACCOUNTS:
Beginning of period.......................................................................................... 0
------------------
End of period................................................................................................ $ 34,909,944
====================
</TABLE>
* The inception date of this sub-account was January 3, 1995.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
24
<PAGE> 27
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
TACTICAL ASSET ALLOCATION SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
-----------
1995+
-----------
<S> <C>
Accumulation unit value, beginning of period.... $ 10.00
Income from operations:
Net investment income (loss)................ .58
Net realized and unrealized
gain (loss) on investments................ 1.28
-----------
Total income (loss) from operations....... 1.86
-----------
Accumulation unit value, end of period.......... $ 11.86
=============
Total return.................................... 18.61%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 34,910
Ratio of net investment income (loss)
to average net assets....................... 5.25%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception of this sub-account was January 3, 1995. The total return and
ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
25
<PAGE> 28
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
DECEMBER 31, 1995
NOTE 1 - ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES
The WRL Series Annuity Account (the "Annuity Account") was established as a
variable accumulation deferred annuity 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 Annuity
Account encompasses various contract types: the WRL Freedom Variable Annuity and
the WRL Freedom Attainer ("Annuity #1"); the WRL Freedom Bellwether and the WRL
Freedom Conqueror ("Annuity #2"). Each contains eleven investment options
referred to as sub-accounts. Each sub-account invests in the corresponding
portfolio of the WRL Series Fund, Inc. (the "Fund"), a registered management
investment company under the Investment Company Act of 1940, as amended. These
portfolios and their respective investment management organizations are as
follows:
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT MANAGER
- ---------------------- ------------------------------
<S> <C>
Money Market Janus Capital Corporation
("JCC")
Bond JCC
Growth JCC
Short-to-Intermediate AEGON USA Investment
Government Management, Inc. ("AEGON
Management")
Global JCC
Equity-Income Luther King Capital Management
Corporation
Emerging Growth Van Kampen American Capital
Asset Management, Inc.
Aggressive Growth Fred Alger Management, Inc.
Balanced AEGON Management
Utility Federated Investment
Counseling
Tactical Asset Dean Investment Associates
Allocation
</TABLE>
WRL and AEGON Management are indirectly wholly-owned subsidiaries of AEGON
USA, Inc., which is an indirect wholly-owned subsidiary of AEGON nv, a
Netherlands corporation.
On January 3, 1995, WRL made an initial contribution of $150,000 to the
Annuity Account, Tactical Asset Allocation sub-account, for which WRL received
15,000.000000 units. On April 20, 1995, WRL redeemed the initial contribution in
the Annuity Account, Tactical Asset Allocation sub-account, for $157,168.
Annuity #1 sub-accounts hold assets to support the benefits under certain
flexible payment variable accumulation deferred annuity contracts (the
"Contracts") issued by WRL, which issued the first of such Contracts on February
24, 1989. The Annuity Account equity transactions are accounted for using the
appropriate effective date at the corresponding accumulation unit value.
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
The following significant accounting policies, which are in conformity with
generally accepted accounting principles for unit investment trusts, have been
consistently used in preparation of the Trust's financial statements.
A. VALUATION OF INVESTMENTS
The investments in the Fund's shares are stated at the closing net asset
value ("NAV") per share as determined by the Fund on December 31, 1995.
Investment transactions are accounted for on the trade date, using the Fund
NAV next determined after receipt of sale or redemption order without sales
charges. Dividend income and capital gain distributions are recorded on the
ex-dividend date. The cost of investments sold is determined on a first-in,
first-out basis.
B. FEDERAL INCOME TAXES
The operations of the Annuity 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
Annuity Account, including realized and unrealized capital gains, is not
taxable to WRL. Accordingly, no provision for Federal income taxes has been
made.
- --------------------------------------------------------------------------------
26
<PAGE> 29
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 2 - CHARGES AND DEDUCTIONS
Charges are assessed by WRL in connection with issuance and administration
of the Contracts.
A. CONTRACT CHARGES
No deduction for sales expenses are made from the purchase payments. A
contingent deferred sales charge may, however, be assessed against contract
values when withdrawn or surrendered.
On each anniversary through maturity date, WRL will deduct an annual
contract charge as partial compensation for providing administrative
services under the Contracts.
B. ANNUITY #1 SUB-ACCOUNTS CHARGES
A daily charge equal to an annual rate of 1.25% 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 Contracts. This charge (not assessed at the individual contract
level) effectively reduces the value of a unit outstanding during the year.
NOTE 3 - DIVIDENDS AND DISTRIBUTIONS
Dividends of the Fund's Money Market Portfolio are declared daily and
reinvested monthly. Dividends of the remaining portfolios are declared and
reinvested semi-annually, while capital gain distributions are declared and
reinvested annually. Dividends and distributions of the Fund are generally paid
to and reinvested by the Annuity Account the next business day after
declaration.
NOTE 4 - OTHER MATTERS
As of December 31, 1995 the equity accounts include net unrealized
appreciation (depreciation) on investments as follows:
<TABLE>
<S> <C>
SUB-ACCOUNT
Money Market........................... $ n/a
Bond................................... (69,081)
Growth................................. 94,178,732
Short-to-Intermediate Government....... 232,734
Global................................. 17,130,489
Equity-Income.......................... 13,876,992
Emerging Growth........................ 25,735,999
Aggressive Growth...................... 3,059,465
Balanced............................... 903,787
Utility................................ 1,100,674
Tactical Asset Allocation.............. 2,335,369
</TABLE>
- --------------------------------------------------------------------------------
27
<PAGE> 30
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
MONEY MARKET SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Money Market Portfolio
(28,030,825.490 shares;
cost $ 28,030,825).................. $ 28,030,825
Accrued transfers from (to)
depositor - net....................... 492,914
-----------------
Total assets........................ 28,523,739
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 28,523,729
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Money Market sub-account
(2,658,930.855662 units;
$ 10.727522 unit value)............. $ 28,523,729
-----------------
Total equity........................ $ 28,523,729
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 1,785,101
Capital gain distributions............... 0
-----------------
1,785,101
EXPENSES:
Mortality and expense risk charges....... 471,597
-----------------
Net investment income (loss)........... 1,313,504
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 0
Change in unrealized appreciation
(depreciation)......................... 0
-----------------
Net gain (loss) on investments......... 0
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 1,313,504
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 1,313,504 $ 459,257
Net gain (loss) on investments........................................................ 0 0
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 1,313,504 459,257
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... 3,849,894 23,523,915
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 15,085 6,710
Policy loans........................................................................ 30,025 8,799
Surrender benefits.................................................................. 4,807,455 4,098,786
Death benefits...................................................................... 324,411 15,941
----------------- -----------------
5,176,976 4,130,236
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... (1,327,082) 19,393,679
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... (13,578) 19,852,936
Depositor's equity contribution (redemption).......................................... 0 (101,154)
EQUITY ACCOUNTS:
Beginning of period................................................................... 28,537,317 8,785,535
----------------- -----------------
End of period......................................................................... $ 28,523,739 $ 28,537,317
=================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
28
<PAGE> 31
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
MONEY MARKET SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
----------------------------------------------------------
1995 1994 1993 1992+
-------- -------- ------- -------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 10.32 $ 10.11 $ 10.01 $ 10.00
Income from operations:
Net investment income (loss)................ .41 .21 .10 .01
Net realized and unrealized
gain (loss) on investment................. .00 .00 .00 .00
-------- -------- ------- -------
Total income (loss) from operations....... .41 .21 .10 .01
-------- -------- ------- -------
Accumulation unit value, end of period.......... $ 10.73 $ 10.32 $ 10.11 $ 10.01
========= ========= ======== ========
Total return.................................... 3.96% 2.07% 1.01% .09%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 28,524 $ 28,537 $ 8,786 $ 100
Ratio of net investment income (loss)
to average net assets....................... 3.89% 2.26% 1.03% .09%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was December 3, 1992. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
29
<PAGE> 32
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
BOND SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Bond Portfolio
(2,896,630.562 shares;
cost $ 31,815,193).................. $ 32,862,871
Accrued transfers from (to)
depositor - net....................... (91,340)
-----------------
Total assets........................ 32,771,531
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 32,771,531
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Bond sub-account
(2,598,178.000140 units;
$ 12.613274 unit value)............. $ 32,771,531
-----------------
Total equity........................ $ 32,771,531
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 1,677,332
Capital gain distributions............... 0
-----------------
1,677,332
EXPENSES:
Mortality and expense risk charges....... 342,765
-----------------
Net investment income (loss)........... 1,334,567
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... (730,842)
Change in unrealized appreciation
(depreciation)......................... 3,995,845
-----------------
Net gain (loss) on investments......... 3,265,003
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 4,599,570
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 1,334,567 $ 916,610
Net gain (loss) on investments........................................................ 3,265,003 (2,612,594)
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 4,599,570 (1,695,984)
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... 12,376,956 3,605,645
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 20,247 13,632
Policy loans........................................................................ 0 20,454
Surrender benefits.................................................................. 1,650,718 1,327,499
Death benefits...................................................................... 147,684 99,837
----------------- -----------------
1,818,649 1,461,422
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... 10,558,307 2,144,223
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... 15,157,877 448,239
Depositor's equity contribution (redemption).......................................... 0 (114,957)
EQUITY ACCOUNTS:
Beginning of period................................................................... 17,613,654 17,280,372
----------------- -----------------
End of period......................................................................... $ 32,771,531 $ 17,613,654
=================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
30
<PAGE> 33
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
BOND SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
-----------------------------------------------------------
1995 1994 1993 1992+
-------- -------- -------- -------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 10.40 $ 11.33 $ 10.14 $ 10.00
Income from operations:
Net investment income (loss)................ .64 .52 2.69 .64
Net realized and unrealized
gain (loss) on investment................. 1.57 (1.45) (1.50) (.50)
-------- -------- -------- -------
Total income (loss) from operations....... 2.21 (.93) 1.19 .14
-------- -------- -------- -------
Accumulation unit value, end of period.......... $ 12.61 $ 10.40 $ 11.33 $ 10.14
======== ======== ======== =======
Total return.................................... 21.28% (8.23)% 11.81% 1.36%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 32,772 $ 17,614 $ 17,280 $ 101
Ratio of net investment income (loss)
to average net assets....................... 5.45% 4.91% 24.79% 6.30%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was December 3, 1992. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
31
<PAGE> 34
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Growth Portfolio
(6,230,854.928 shares;
cost $ 168,790,057)................. $ 197,273,481
Accrued transfers from (to)
depositor - net....................... 865,103
-----------------
Total assets........................ 198,138,584
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 198,138,584
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Growth sub-account
(14,387,637.262853 units;
$ 13.771447 unit value)............. $ 198,138,584
-----------------
Total equity........................ $ 198,138,584
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 870,370
Capital gain distributions............... 18,013,240
-----------------
18,883,610
EXPENSES:
Mortality and expense risk charges....... 2,119,146
-----------------
Net investment income (loss)........... 16,764,464
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 1,525,607
Change in unrealized appreciation
(depreciation)......................... 36,791,275
-----------------
Net gain (loss) on investments......... 38,316,882
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 55,081,346
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 16,764,464 $ (259,963)
Net gain (loss) on investments........................................................ 38,316,882 (9,453,848)
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 55,081,346 (9,713,811)
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... 40,690,699 41,203,631
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 173,999 115,349
Policy loans........................................................................ 36,385 28,887
Surrender benefits.................................................................. 9,406,104 5,780,272
Death benefits...................................................................... 399,627 490,389
----------------- -----------------
10,016,115 6,414,897
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... 30,674,584 34,788,734
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... 85,755,930 25,074,923
Depositor's equity contribution (redemption).......................................... 0 (107,288)
EQUITY ACCOUNTS:
Beginning of period................................................................... 112,382,654 87,415,019
----------------- -----------------
End of period......................................................................... $ 198,138,584 $ 112,382,654
=================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
32
<PAGE> 35
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
-------------------------------------------------------------
1995 1994 1993 1992+
--------- --------- -------- -------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 9.49 $ 10.50 $ 10.24 $ 10.00
Income from operations:
Net investment income (loss)................ 1.30 (.03) .31 .39
Net realized and unrealized
gain (loss) on investment................. 2.98 (.98) (.05) (.15)
--------- --------- -------- -------
Total income (loss) from operations....... 4.28 (1.01) .26 .24
--------- --------- -------- -------
Accumulation unit value, end of period.......... $ 13.77 $ 9.49 $ 10.50 $ 10.24
========== ========== ========= ========
Total return.................................... 45.08% (9.58)% 2.55% 2.38%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 198,139 $ 112,383 $ 87,415 $ 102
Ratio of net investment income (loss)
to average net assets....................... 11.07% (.26)% 3.14% 3.82%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was December 3, 1992. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
33
<PAGE> 36
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
SHORT-TO-INTERMEDIATE GOVERNMENT SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Short-to-Intermediate Government
Portfolio
(1,246,554.162 shares;
cost $ 12,607,061).................. $ 12,984,245
Accrued transfers from (to)
depositor - net....................... 1,297
-----------------
Total assets........................ 12,985,542
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 12,985,542
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Short-to-Intermediate Government
sub-account
(1,141,492.807778 units;
$ 11.375930 unit value)............. $ 12,985,542
-----------------
Total equity........................ $ 12,985,542
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income........................ $ 672,129
Capital gain distributions............. 0
-----------------
672,129
EXPENSES:
Mortality and expense risk charges..... 162,554
-----------------
Net investment income (loss)......... 509,575
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from
securities transactions.............. (190,002)
Change in unrealized appreciation
(depreciation)....................... 991,022
-----------------
Net gain (loss) on investments....... 801,020
-----------------
Net increase (decrease) in equity
accounts resulting from
operations....................... $ 1,310,595
=====================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 509,575 $ 451,637
Net gain (loss) on investments........................................................ 801,020 (688,949)
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 1,310,595 (237,312)
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... 1,293,887 21,957
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 7,052 5,707
Policy loans........................................................................ 31,238 34,109
Surrender benefits.................................................................. 1,086,564 728,811
Death benefits...................................................................... 143,519 57,574
----------------- -----------------
1,268,373 826,201
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... 25,514 (804,244)
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... 1,336,109 (1,041,556)
Depositor's equity contribution (redemption).......................................... 0 (873,292)
EQUITY ACCOUNTS:
Beginning of period................................................................... 11,649,433 13,564,281
----------------- -----------------
End of period......................................................................... $ 12,985,542 $ 11,649,433
===================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
34
<PAGE> 37
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
SHORT-TO-INTERMEDIATE GOVERNMENT SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
-----------------------------------------------------------
1995 1994 1993 1992+
-------- -------- -------- -------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 10.16 $ 10.35 $ 10.03 $ 10.00
Income from operations:
Net investment income (loss)................ .48 .37 .30 .01
Net realized and unrealized
gain (loss) on investments................ .74 (.56) .02 .02
-------- -------- -------- -------
Total income (loss) from operations....... 1.22 (.19) .32 .03
-------- -------- -------- -------
Accumulation unit value, end of period.......... $ 11.38 $ 10.16 $ 10.35 $ 10.03
========= ========= ========= ========
Total return.................................... 11.96% (1.81)% 3.12% .35%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 12,986 $ 11,649 $ 13,564 $ 853
Ratio of net investment income (loss)
to average net assets....................... 4.39% 3.68% 2.98% .13%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was December 3, 1992. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
35
<PAGE> 38
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
GLOBAL SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Global Portfolio
(7,156,669.202 shares;
cost $ 98,775,431).................. $ 111,040,456
Accrued transfers from (to)
depositor - net....................... 917,976
-----------------
Total assets........................ 111,958,432
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 111,958,432
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Global sub-account
(6,903,572.974135 units;
$ 16.217462 unit value)............. $ 111,958,432
-----------------
Total equity........................ $ 111,958,432
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31, 1995
INVESTMENT INCOME:
<S> <C>
Dividend income........................... $ 125,670
Capital gain distributions................ 4,197,903
----------------
4,323,573
EXPENSES:
Mortality and expense risk charges........ 1,386,678
----------------
Net investment income (loss)............ 2,936,895
----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions............................ 4,357,331
Change in unrealized appreciation
(depreciation).......................... 12,210,581
----------------
Net gain (loss) on investments.......... 16,567,912
----------------
Net increase (decrease) in equity
accounts resulting from
operations.......................... $ 19,504,807
==================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 2,936,895 $ 2,765,212
Net gain (loss) on investments........................................................ 16,567,912 (3,980,604)
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 19,504,807 (1,215,392)
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... 3,172,478 71,394,070
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 106,341 44,761
Policy loans........................................................................ 5,024 9,824
Surrender benefits.................................................................. 5,972,420 3,590,878
Death benefits...................................................................... 464,451 266,183
----------------- -----------------
6,548,236 3,911,646
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... (3,375,758) 67,482,424
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... 16,129,049 66,267,032
Depositor's equity contribution (redemption).......................................... 0 (342,963)
EQUITY ACCOUNTS:
Beginning of period................................................................... 95,829,383 29,905,314
----------------- -----------------
End of period......................................................................... $ 111,958,432 $ 95,829,383
=================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
36
<PAGE> 39
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
GLOBAL SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
------------------------------------------------------------
1995 1994 1993 1992+
--------- -------- -------- -------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 13.36 $ 13.52 $ 10.15 $ 10.00
Income from operations:
Net investment income (loss)................ .43 .53 .11 (.01)
Net realized and unrealized
gain (loss) on investment................. 2.43 (.69) 3.26 .16
--------- -------- -------- -------
Total income (loss) from operations....... 2.86 (.16) 3.37 .15
--------- -------- -------- -------
Accumulation unit value, end of period.......... $ 16.22 $ 13.36 $ 13.52 $ 10.15
========== ========= ========= ========
Total return.................................... 21.35% (1.14)% 33.17% 1.51%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 111,958 $ 95,829 $ 29,905 $ 254
Ratio of net investment income (loss)
to average net assets....................... 2.96% 3.95% .99% (.11)%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was December 3, 1992. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
37
<PAGE> 40
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
EQUITY-INCOME SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Equity-Income Portfolio
(7,836,733.175 shares;
cost $ 89,819,964).................. $ 100,815,159
Accrued transfers from (to)
depositor - net....................... 835,949
-----------------
Total assets........................ 101,651,108
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 101,651,108
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Equity-Income sub-account
(7,498,915.593967 units;
$ 13.555441 unit value)............. $ 101,651,108
-----------------
Total equity........................ $ 101,651,108
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 2,624,380
Capital gain distributions............... 2,631,227
-----------------
5,255,607
EXPENSES:
Mortality and expense risk charges....... 1,194,121
-----------------
Net investment income (loss)........... 4,061,486
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 1,477,909
Change in unrealized appreciation
(depreciation)......................... 11,986,591
-----------------
Net gain (loss) on investments......... 13,464,500
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 17,525,986
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 4,061,486 $ 802,343
Net gain (loss) on investments........................................................ 13,464,500 (1,600,649)
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 17,525,986 (798,306)
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... 17,763,181 47,358,710
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 71,983 30,989
Policy loans........................................................................ 0 22,759
Surrender benefits.................................................................. 4,611,616 2,510,372
Death benefits...................................................................... 687,018 175,728
----------------- -----------------
5,370,617 2,739,848
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... 12,392,564 44,618,862
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... 29,918,550 43,820,556
Depositor's equity contribution (redemption).......................................... 0 (399,714)
EQUITY ACCOUNTS:
Beginning of period................................................................... 71,732,558 28,311,716
----------------- -----------------
End of period......................................................................... $ 101,651,108 $ 71,732,558
=================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
38
<PAGE> 41
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
EQUITY-INCOME SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
---------------------------------------------
1995 1994 1993+
---------- -------- --------
<S> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 11.03 $ 11.24 $ 10.00
Income from operations:
Net investment income (loss)................ .59 .16 .20
Net realized and unrealized
gain (loss) on investment................. 1.94 (.37) 1.04
---------- -------- --------
Total income (loss) from operations....... 2.53 (.21) 1.24
---------- -------- --------
Accumulation unit value, end of period.......... $ 13.56 $ 11.03 $ 11.24
========== ========= =========
Total return.................................... 22.93% (1.92)% 12.43%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 101,651 $ 71,733 $ 28,312
Ratio of net investment income (loss)
to average net assets....................... 4.76% 1.49% 1.87%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was March 1, 1993. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
39
<PAGE> 42
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
EMERGING GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Emerging Growth Portfolio
(6,452,411.758 shares;
cost $ 82,403,820).................. $ 104,817,068
Accrued transfers from (to)
depositor - net....................... 297,742
-----------------
Total assets........................ 105,114,810
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 105,114,810
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Emerging Growth sub-account
(6,434,050.653589 units;
$ 16.337268 unit value)............. $ 105,114,810
-----------------
Total equity........................ $ 105,114,810
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 18,082
Capital gain distributions............... 4,331,176
-----------------
4,349,258
EXPENSES:
Mortality and expense risk charges....... 1,160,134
-----------------
Net investment income (loss)........... 3,189,124
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 2,726,445
Change in unrealized appreciation
(depreciation)......................... 24,715,163
-----------------
Net gain (loss) on investments......... 27,441,608
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 30,630,732
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 3,189,124 $ (644,417)
Net gain (loss) on investments........................................................ 27,441,608 (3,294,972)
----------------- -----------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 30,630,732 (3,939,389)
----------------- -----------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... 16,786,688 43,904,600
----------------- -----------------
Less cost of units redeemed:
Administrative charges.............................................................. 85,948 34,882
Policy loans........................................................................ 13,781 13,553
Surrender benefits.................................................................. 4,544,091 2,178,811
Death benefits...................................................................... 273,410 113,827
----------------- -----------------
4,917,230 2,341,073
----------------- -----------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... 11,869,458 41,563,527
----------------- -----------------
Net increase (decrease) in equity accounts.......................................... 42,500,190 37,624,138
Depositor's equity contribution (redemption).......................................... 0 (453,363)
EQUITY ACCOUNTS:
Beginning of period................................................................... 62,614,620 25,443,845
----------------- -----------------
End of period......................................................................... $ 105,114,810 $ 62,614,620
=================== ===================
</TABLE>
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
40
<PAGE> 43
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
EMERGING GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
--------------------------------------------
1995 1994 1993+
--------- -------- --------
<S> <C> <C> <C>
Accumulation unit value, beginning of period.... $ 11.29 $ 12.35 $ 10.00
Income from operations:
Net investment income (loss)................ .54 (.15) (.14)
Net realized and unrealized
gain (loss) on investments................ 4.51 (.91) 2.49
--------- -------- --------
Total income (loss) from operations....... 5.05 (1.06) 2.35
--------- -------- --------
Accumulation unit value, end of period.......... $ 16.34 $ 11.29 $ 12.35
========== ========= =========
Total return.................................... 44.75% (8.65)% 23.54%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 105,115 $ 62,615 $ 25,444
Ratio of net investment income (loss)
to average net assets....................... 3.85% (1.33)% (1.20)%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was March 1, 1993. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
41
<PAGE> 44
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
AGGRESSIVE GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Aggressive Growth Portfolio
(4,500,269.637 shares;
cost $ 55,918,903)................... $ 59,630,183
Accrued transfers from (to)
depositor - net........................ 789,360
---------------
Total assets......................... 60,419,543
---------------
LIABILITIES:............................... 0
---------------
Total net assets..................... $ 60,419,543
==================
EQUITY ACCOUNTS:
Contract Owners' equity:
Aggressive Growth sub-account
(4,538,243.619699 units;
$ 13.313420 unit value).............. $ 60,419,543
---------------
Total equity......................... $ 60,419,543
==================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 167
Capital gain distributions............... 1,574,535
---------------
1,574,702
EXPENSES:
Mortality and expense risk charges....... 496,029
---------------
Net investment income (loss)........... 1,078,673
---------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 2,166,499
Change in unrealized appreciation
(depreciation)......................... 3,287,005
---------------
Net gain (loss) on investments......... 5,453,504
---------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 6,532,177
==================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994*
<S> <C> <C>
OPERATIONS:
Net investment income (loss)......................................................... $ 1,078,673 $ (50,309)
Net gain (loss) on investments....................................................... 5,453,504 423,609
----------------- ------------------
Net increase (decrease) in equity accounts
resulting from operations.......................................................... 6,532,177 373,300
----------------- ------------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed).................................................. 44,671,168 10,915,809
----------------- ------------------
Less cost of units redeemed:
Administrative charges............................................................. 26,869 2,281
Policy loans....................................................................... 8,808 4,781
Surrender benefits................................................................. 1,799,668 139,102
Death benefits..................................................................... 78,444 0
----------------- ------------------
1,913,789 146,164
----------------- ------------------
Increase (decrease) in equity accounts from
capital unit transactions........................................................ 42,757,379 10,769,645
----------------- ------------------
Net increase (decrease) in equity accounts......................................... 49,289,556 11,142,945
Depositor's equity contribution (redemption)......................................... (272,958) 260,000
EQUITY ACCOUNTS:
Beginning of period.................................................................. 11,402,945 0
----------------- ------------------
End of period........................................................................ $ 60,419,543 $ 11,402,945
===================== ====================
</TABLE>
* The inception date of this sub-account was March 1, 1994.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
42
<PAGE> 45
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
AGGRESSIVE GROWTH SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
-------------------------
1995 1994+
-------- --------
<S> <C> <C>
Accumulation unit value, beginning of period.... $ 9.78 $ 10.00
Income from operations:
Net investment income (loss)................ .40 (.10)
Net realized and unrealized
gain (loss) on investments................ 3.13 (.12)
-------- --------
Total income (loss) from operations....... 3.53 (.22)
-------- --------
Accumulation unit value, end of period.......... $ 13.31 $ 9.78
========= =========
Total return.................................... 36.10% (2.18)%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 60,420 $ 11,403
Ratio of net investment income (loss)
to average net assets....................... 3.04% (.99)%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was March 1, 1994. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
43
<PAGE> 46
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
BALANCED SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Balanced Portfolio
(1,502,723.671 shares; cost
$ 14,649,370)....................... $ 15,980,734
Accrued transfers from (to)
depositor - net....................... 88,060
-----------------
Total assets........................ 16,068,794
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 16,068,794
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Balanced sub-account
(1,436,511.861084 units;
$ 11.032381 unit value)............. $ 15,848,146
Depositors' equity:
Balanced sub-account
(20,000.000000 units;
$ 11.032381 unit value)............. 220,648
-----------------
Total equity........................ $ 16,068,794
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31, 1995
INVESTMENT INCOME:
<S> <C>
Dividend income........................... $ 553,159
Capital gain distributions................ 0
----------------
553,159
EXPENSES:
Mortality and expense risk charges........ 169,887
----------------
Net investment income (loss)............ 383,272
----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions............................ 12,691
Change in unrealized appreciation
(depreciation).......................... 1,685,289
----------------
Net gain (loss) on investments.......... 1,697,980
----------------
Net increase (decrease) in equity
accounts resulting from
operations.......................... $ 2,081,252
==================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994*
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................................... $ 383,272 $ 101,544
Net gain (loss) on investments........................................................ 1,697,980 (358,976)
---------------- ------------------
Net increase (decrease) in equity accounts
resulting from operations........................................................... 2,081,252 (257,432)
---------------- ------------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)................................................... 6,741,534 8,140,529
---------------- ------------------
Less cost of units redeemed:
Administrative charges.............................................................. 8,055 589
Policy loans........................................................................ 0 21,306
Surrender benefits.................................................................. 543,786 125,576
Death benefits...................................................................... 137,777 0
---------------- ------------------
689,618 147,471
---------------- ------------------
Increase (decrease) in equity accounts from
capital unit transactions......................................................... 6,051,916 7,993,058
---------------- ------------------
Net increase (decrease) in equity accounts.......................................... 8,133,168 7,735,626
Depositor's equity contribution (redemption).......................................... 0 200,000
EQUITY ACCOUNTS:
Beginning of period................................................................... 7,935,626 0
---------------- ------------------
End of period......................................................................... $ 16,068,794 $ 7,935,626
================== ====================
</TABLE>
* The inception date of this sub-account was March 1, 1994.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
44
<PAGE> 47
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
BALANCED SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
-----------------------------
1995 1994+
-------- -----------
<S> <C> <C>
Accumulation unit value, beginning of period.... $ 9.34 $ 10.00
Income from operations:
Net investment income (loss)................ .32 .27
Net realized and unrealized
gain (loss) on investments................ 1.37 (.93)
-------- -----------
Total income (loss) from operations....... 1.69 (.66)
-------- -----------
Accumulation unit value, end of period.......... $ 11.03 $ 9.34
========= =============
Total return.................................... 18.13% (6.61)%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 16,069 $ 7,936
Ratio of net investment income (loss)
to average net assets....................... 3.16% 2.90%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was March 1, 1994. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
45
<PAGE> 48
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
UTILITY SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Utility Portfolio
(906,462.911 shares;
cost $ 9,284,067)................... $ 10,083,189
Accrued transfers from (to)
depositor - net....................... 2,453
-----------------
Total assets........................ 10,085,642
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 10,085,642
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Utility sub-account
(843,789.458936 units;
$ 11.676042 unit value)............. $ 9,852,121
Depositors' equity:
Utility sub-account
(20,000.000000 units;
$ 11.676042 unit value)............. 233,521
-----------------
Total equity........................ $ 10,085,642
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
INVESTMENT INCOME: DECEMBER 31, 1995
<S> <C>
Dividend income.......................... $ 313,797
Capital gain distributions............... 75,695
-----------------
389,492
EXPENSES:
Mortality and expense risk charges....... 92,303
-----------------
Net investment income (loss)........... 297,189
-----------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from securities
transactions........................... 220,387
Change in unrealized appreciation
(depreciation)......................... 937,376
-----------------
Net gain (loss) on investments......... 1,157,763
-----------------
Net increase (decrease) in equity
accounts resulting from
operations......................... $ 1,454,952
===================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994*
<S> <C> <C>
OPERATIONS:
Net investment income (loss)......................................................... $ 297,189 $ 62,720
Net gain (loss) on investments....................................................... 1,157,763 (154,434)
----------------- ------------------
Net increase (decrease) in equity accounts
resulting from operations.......................................................... 1,454,952 (91,714)
----------------- ------------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed).................................................. 5,146,911 3,839,826
----------------- ------------------
Less cost of units redeemed:
Administrative charges............................................................. 4,161 276
Policy loans....................................................................... 193 16,969
Surrender benefits................................................................. 210,465 144,466
Death benefits..................................................................... 87,803 0
----------------- ------------------
302,622 161,711
----------------- ------------------
Increase (decrease) in equity accounts from
capital unit transactions........................................................ 4,844,289 3,678,115
----------------- ------------------
Net increase (decrease) in equity accounts......................................... 6,299,241 3,586,401
Depositor's equity contribution (redemption)......................................... 0 200,000
EQUITY ACCOUNTS:
Beginning of period.................................................................. 3,786,401 0
----------------- ------------------
End of period........................................................................ $ 10,085,642 $ 3,786,401
=================== ====================
</TABLE>
* The inception date of this sub-account was March 1, 1994.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
46
<PAGE> 49
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
UTILITY SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
----------------------------------------
1995 1994+
----------------- -------------
<S> <C> <C>
Accumulation unit value, beginning of period.... $ 9.45 $ 10.00
Income from operations:
Net investment income (loss)................ .47 .33
Net realized and unrealized
gain (loss) on investments................ 1.76 (.88)
----------------- -------------
Total income (loss) from operations....... 2.23 (.55)
----------------- -------------
Accumulation unit value, end of period.......... $ 11.68 $ 9.45
=================== ===============
Total return.................................... 23.52% (5.47)%
Ratios and supplemental data:
Net assets at end of period (in
thousands)................................ $ 10,086 $ 3,786
Ratio of net investment income (loss)
to average net assets..................... 4.50% 3.48%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was March 1, 1994. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
47
<PAGE> 50
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
TACTICAL ASSET ALLOCATION SUB-ACCOUNT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
ASSETS: DECEMBER 31, 1995
<S> <C>
Investments, at net asset value:
WRL Series Fund, Inc.:
Tactical Asset Allocation Portfolio
(6,619,630.020 shares;
cost $ 74,153,257).................. $ 76,074,774
Accrued transfers from (to)
depositor - net....................... (3,775,165)
-----------------
Total assets........................ 72,299,609
-----------------
LIABILITIES:.............................. 0
-----------------
Total net assets.................... $ 72,299,609
===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Tactical Asset Allocation
sub-account
(6,104,684.950590 units;
$ 11.843299 unit value)............. $ 72,299,609
-----------------
Total equity........................ $ 72,299,609
===================
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
PERIOD ENDED
INVESTMENT INCOME: DECEMBER 31, 1995*
<S> <C>
Dividend income........................ $ 1,141,213
Capital gain distributions............. 1,381,088
--------------------
2,522,301
EXPENSES:
Mortality and expense risk charges..... 406,309
--------------------
Net investment income (loss)......... 2,115,992
--------------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) from
securities transactions.............. 1,248,103
Change in unrealized appreciation
(depreciation)....................... 1,921,517
--------------------
Net gain (loss) on investments....... 3,169,620
--------------------
Net increase (decrease) in equity
accounts resulting from
operations....................... $ 5,285,612
=====================
</TABLE>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
<TABLE>
<CAPTION>
PERIOD ENDED
DECEMBER 31, 1995*
<S> <C>
OPERATIONS:
Net investment income (loss)................................................................................ $ 2,115,992
Net gain (loss) on investments.............................................................................. 3,169,620
-------------------
Net increase (decrease) in equity accounts
resulting from operations................................................................................. 5,285,612
-------------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed)......................................................................... 70,478,164
-------------------
Less cost of units redeemed:
Administrative charges.................................................................................... 7,030
Policy loans.............................................................................................. 8,139
Surrender benefits........................................................................................ 3,423,825
Death benefits............................................................................................ 18,074
-------------------
3,457,068
-------------------
Increase (decrease) in equity accounts from
capital unit transactions............................................................................... 67,021,096
-------------------
Net increase (decrease) in equity accounts................................................................ 72,306,708
Depositor's equity contributions (redemption)............................................................. (7,099)
EQUITY ACCOUNTS:
Beginning of period......................................................................................... 0
-------------------
End of period............................................................................................... $ 72,299,609
=====================
</TABLE>
* The inception date of this sub-account was January 3, 1995.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
48
<PAGE> 51
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
TACTICAL ASSET ALLOCATION SUB-ACCOUNT
- --------------------------------------------------------------------------------
SELECTED PER UNIT DATA AND RATIOS*
FOR THE PERIOD ENDED
<TABLE>
<CAPTION>
DECEMBER 31
-----------
1995+
-----------
<S> <C>
Accumulation unit value, beginning of period.... $ 10.00
Income from operations:
Net investment income (loss)................ .82
Net realized and unrealized
gain (loss) on investments................ 1.02
-----------
Total income (loss) from operations....... 1.84
-----------
Accumulation unit value, end of period.......... $ 11.84
=============
Total return.................................... 18.43%
Ratios and supplemental data:
Net assets at end of period (in thousands).... $ 72,300
Ratio of net investment income (loss)
to average net assets....................... 7.29%
</TABLE>
* The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
+ The inception date of this sub-account was January 3, 1995. The total return
and ratio of net investment income to average net assets are not annualized.
The notes to the financial statements are an integral part of this report.
- --------------------------------------------------------------------------------
49
<PAGE> 52
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
DECEMBER 31, 1995
NOTE 1 - ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES
The WRL Series Annuity Account (the "Annuity Account") was established as a
variable accumulation deferred annuity 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 Annuity
Account encompasses various contract types: the WRL Freedom Variable Annuity and
the WRL Freedom Attainer ("Annuity #1"); the WRL Freedom Bellwether and the WRL
Freedom Conqueror ("Annuity #2"). Each contains eleven investment options
referred to as sub-accounts. Each sub-account invests in the corresponding
portfolio of the WRL Series Fund, Inc. (the "Fund"), a registered management
investment company under the Investment Company Act of 1940, as amended. These
portfolios and their respective investment management organizations are as
follows:
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT MANAGER
- ----------------------- -----------------------------
<S> <C>
Money Market Janus Capital Corporation
("JCC")
Bond JCC
Growth JCC
Short-to Intermediate AEGON USA Investment
Government Management, Inc. ("AEGON
Management")
Global JCC
Equity-Income Luther King Capital
Management Corporation
Emerging Growth Van Kampen American Capital
Asset Management, Inc.
Aggressive Growth Fred Alger Management, Inc.
Balanced AEGON Management
Utility Federated Investment
Counseling
Tactical Asset Dean Investment Associates
Allocation
</TABLE>
WRL and AEGON Management are indirectly wholly-owned subsidiaries of AEGON
USA, Inc., which is an indirect wholly-owned subsidiary of AEGON nv, a
Netherlands corporation.
On January 3, 1995, WRL made an initial contribution of $150,000 to the
Annuity Account, Tactical Asset Allocation sub-account, for which WRL received
15,000.000000 units. On April 20, 1995, WRL redeemed the initial contribution in
the Annuity Account, Tactical Asset Allocation sub-account, for $157,099.
The Annuity #2 sub-accounts were established on December 3, 1992 to hold
assets that support the benefits under certain flexible payment variable
accumulation deferred annuity contracts (the "Contracts") issued by WRL. The
Annuity Account equity transactions are accounted for using the appropriate
effective date at the corresponding accumulation unit value.
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
The following significant accounting policies, which are in conformity with
generally accepted accounting principles for unit investment trusts, have been
consistently used in preparation of the Trust's financial statements.
A. VALUATION OF INVESTMENTS
The investments in the Fund's shares are stated at the closing net asset
value ("NAV") per share as determined by the Fund on December 31, 1995.
Investment transactions are accounted for on the trade date, using the Fund
NAV next determined after receipt of sale or redemption order without sales
charges. Dividend income and capital gain distributions are recorded on the
ex-dividend date. The cost of investments sold is determined on a first-in,
first-out basis.
B. FEDERAL INCOME TAXES
The operations of the Annuity 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
Annuity Account, including realized and unrealized capital gains, is not
taxable to WRL. Accordingly, no provision for Federal income taxes has been
made.
- --------------------------------------------------------------------------------
50
<PAGE> 53
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 2 - CHARGES AND DEDUCTIONS
Charges are assessed by WRL in connection with issuance and administration
of the Contracts.
A. CONTRACT CHARGES
No deduction for sales expenses are made from the purchase payments. A
contingent deferred sales charge may, however, be assessed against contract
values when withdrawn or surrendered.
On each anniversary through maturity date, WRL will deduct an annual
contract charge as partial compensation for providing administrative
services under the Contracts.
B. ANNUITY #2 SUB-ACCOUNTS CHARGES
A daily charge equal to an annual rate of 1.40% 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 Contracts. This charge (not assessed at the individual contract
level) effectively reduces the value of a unit outstanding during the year.
NOTE 3 - DIVIDENDS AND DISTRIBUTIONS
Dividends of the Fund's Money Market Portfolio are declared daily and
reinvested monthly. Dividends of the remaining portfolios are declared and
reinvested semiannually, while capital gain distributions are declared and
reinvested annually. Dividends and distributions of the Fund are generally paid
to and reinvested by the Annuity Account the next business day after
declaration.
NOTE 4 - OTHER MATTERS
As of December 31, 1995 the equity accounts include net unrealized
appreciation (depreciation) on investments as follows:
<TABLE>
<CAPTION>
SUB-ACCOUNT
- ---------------------------------------
<S> <C>
Money Market........................... $ n/a
Bond................................... 1,047,678
Growth................................. 28,483,424
Short-to-Intermediate Government....... 377,184
Global................................. 12,265,025
Equity-Income.......................... 10,995,195
Emerging Growth........................ 22,413,248
Aggressive Growth...................... 3,711,280
Balanced............................... 1,331,364
Utility................................ 799,122
Tactical Asset Allocation.............. 1,921,517
</TABLE>
- --------------------------------------------------------------------------------
51
<PAGE> 54
This page is intentionally left blank.
<PAGE> 55
- --------------------------------------------------------------------------------
W R L S E R I E S A N N U I T Y A C C O U N T
- --------------------------------------------------------------------------------
OFFICE OF THE
WRL SERIES ANNUITY ACCOUNT
201 Highland Avenue
Largo, FL 34640
1-800-851-9777
Ext. 6538
---------------------------------------------
DISTRIBUTOR:
InterSecurities, Inc.
201 Highland Avenue
Largo, FL 34640
---------------------------------------------
INSURER:
Western Reserve Life Assurance Co. of Ohio
201 Highland Avenue
Largo, FL 34640
---------------------------------------------
INDEPENDENT ACCOUNTANTS:
Price Waterhouse LLP
1055 Broadway
Kansas City, MO 64105
<PAGE> 56
(FILM SUPPLIED)
THIS MATERIAL IS FOR CONTRACT HOLDER'S
REPORTING PURPOSES ONLY AND SHALL NOT
BE USED IN CONNECTION WITH A SOLICITATION,
OFFER OR ANY PROPOSED SALE OR PURCHASE
OF SECURITIES UNLESS PRECEDED OR
ACCOMPANIED BY A PROSPECTUS.
[WRL LOGO]
- --------------------------------------------------------------------------------
Western Reserve Life Assurance Co. of Ohio
Distributor: InterSecurities, Inc.
P.O. Box 5068 - Clearwater, FL 34618-5068
February 1996
ACC00002-A (2/96)
