WRL FREEDOM VARIABLE ANNUITY
Supplement dated February 28, 1997, to the Prospectus dated May 1, 1996,
as Supplemented January 1, 1997
The Global Sector Sub-Account is currently available to Contract Owners
for allocation of Net Purchase Payments and transfers from other Sub-Accounts
and the Fixed Account. The Global Sector Sub-Account invests in the Global
Sector Portfolio ("Portfolio") of the WRL Series Fund, Inc. ("Fund"). One of the
current Co-Sub-Advisers to the Portfolio is INVESCO Global Asset Management
Limited ("IGAM"). There is a description of IGAM on page 18 of the WRL Freedom
Variable Annuity prospectus.
On February 28, 1997, the parent company of all the INVESCO entities,
INVESCO PLC, will merge with A I M Management Group, Inc. As a result, the
current sub-advisory agreement ("Agreement") between WRL Investment Management,
Inc. ("WRL Investment") and IGAM will automatically terminate by operation of
law. By mutual agreement, IGAM and WRL Investment have determined that it would
be impractical to enter into a new sub-advisory agreement on behalf of the
Portfolio. Therefore, IGAM will cease to serve as a Co-Sub-Adviser to the
Portfolio.
As a result, the other current Co-Sub-Adviser to the Portfolio, Meridian
Investment Management Corporation ("Meridian"), will become the sole Sub-Adviser
to the Portfolio, and will assume the duties previously held by IGAM, as well as
continue to fulfill the duties and responsibilities under the current
sub-advisory agreement between WRL
Investment and Meridian, which will continue.
Consistent with these changes, the following changes are hereby made to
the Prospectus for the WRL Freedom Variable Annuity:
- -- PAGE 5 - Under the sub-heading entitled, "Summary of Charges and Expenses -
Fund Annual Expenses (as a % of Fund average net assets) - Global
Sector Portfolio", change the percentage for the line "Management Fees"
to 0.70% and change the percentage for the line "Total Fund Annual
Expenses" to 0.90%.
- -- PAGE 18 - In the seventh full paragraph, delete all references to INVESCO
Global Asset Management Limited.
WRL00167-02/97
