August 1997
ACC00002 (8/97)
<PAGE>
- --------------------------------------------------------------------------------
T A B L E O F C O N T E N T S
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
<S> <C>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENTS OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS 1
Statements of Operations .............................. 1
Statements of Changes in Equity Accounts ............... 5
Selected Per Unit Data and Ratios ..................... 8
Notes to Financial Statements ........................ 14
Bellwether and Conqueror
STATEMENTS OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS 16
Statements of Operations .............................. 16
Statements of Changes in Equity Accounts ............... 20
Selected Per Unit Data and Ratios ..................... 23
Notes to Financial Statements ........................ 29
</TABLE>
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
At June 30,1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TO-
INTERMEDIATE
MONEY MARKET BOND GROWTH GOVERNMENT
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C> <C>
ASSETS:
Investments
Investment in WRL Series Fund, Inc.:
Shares .................................... 48,116,144.840 3,678,916.860 15,061,022.970 691,332.897
================= ================= ================== ===============
Cost ....................................... $ 48,116,145 $ 40,619,689 $ 415,013,494 $ 7,197,103
================= ================= ================== ===============
Investments at net asset value ............ $ 48,116,145 $ 39,710,405 $ 583,123,614 $ 7,174,790
Accrued transfers from (to) depositor - net (236,075) (27,161) (575,582) (144)
----------------- ----------------- ------------------ ---------------
Total assets .............................. 47,880,070 39,683,244 582,548,032 7,174,646
----------------- ----------------- ------------------ ---------------
LIABILITIES: ................................. 4,963 4,090 60,435 737
----------------- ----------------- ------------------ ---------------
Total net assets ........................... $ 47,875,107 $ 39,679,154 $ 582,487,597 $ 7,173,909
================= ================= ================== ===============
EQUITY ACCOUNTS:
Contract Owners' equity:
Units .................................... 3,535,053.360261 2,163,620.878624 15,847,277.776682 602,901.690274
================= ================= ================== ===============
Unit value ................................. $ 13.542966 $ 18.339236 $ 36.756319 $ 11.898969
================= ================= ================== ===============
Contract Owners' equity .................. $ 47,875,107 $ 39,679,154 $ 582,487,597 $ 7,173,909
----------------- ----------------- ------------------ ---------------
Depositor's equity:
Units .................................... N/A N/A N/A N/A
================= ================= ================== ===============
Unit value ................................. $ N/A $ N/A $ N/A $ N/A
================= ================= ================== ===============
Depositor's equity ........................ N/A N/A N/A N/A
----------------- ----------------- ------------------ ---------------
Total equity .............................. $ 47,875,107 $ 39,679,154 $ 582,487,597 $ 7,173,909
================= ================= ================== ===============
</TABLE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF OPERATIONS
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TO-
INTERMEDIATE
MONEY MARKET BOND GROWTH GOVERNMENT
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 1,310,730 $ 422,795 $ 709,503 $ 84,876
Capital gain distributions .............................. 0 0 3,985,761 0
--------------- -------------- -------------- -------------
1,310,730 422,795 4,695,264 84,876
EXPENSES:
Mortality and expense risk .............................. 320,784 258,226 3,519,240 46,405
--------------- -------------- -------------- -------------
Net investment income (loss) ........................... 989,946 164,569 1,176,024 38,471
--------------- -------------- -------------- -------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions 0 (907,104) 18,607,272 7,000
Change in unrealized appreciation (depreciation) ...... 0 1,219,030 37,891,318 88,603
--------------- -------------- -------------- -------------
Net gain (loss) on investments ........................ 0 311,926 56,498,590 95,603
--------------- -------------- -------------- -------------
Net increase (decrease) in equity accounts
resulting from operations ........................... $ 989,946 $ 476,495 $ 57,674,614 $ 134,074
=============== ============== ============== =============
</TABLE>
The notes to the financial statements are an integral part of this report.
1
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
At June 30,1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC EMERGING AGGRESSIVE
GLOBAL TOTAL RETURN GROWTH GROWTH
SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C> <C>
ASSETS:
Investments
Investment in WRL Series Fund, Inc.:
Shares .................................... 12,945,011.826 9,821,405.330 7,496,355.714 4,253,648.987
=================== ================= =================== ==============
Cost ....................................... $ 199,549,436 $ 117,010,007 $ 108,075,559 $ 60,203,805
=================== ================= ================== ==============
Investments at net asset value ............... $ 270,463,812 $ 155,507,674 $ 149,459,846 $ 68,822,249
Accrued transfers from (to) depositor - net 108,451 (69,852) 137,282 10,817
------------------- ----------------- ------------------ --------------
Total assets .............................. 270,572,263 155,437,822 149,597,128 68,833,066
------------------- ----------------- ------------------ --------------
LIABILITIES: 27,965 15,949 15,296 7,081
------------------- ----------------- ------------------ --------------
Total net assets ........................... $ 270,544,298 $ 155,421,873 $ 149,581,832 $ 68,825,985
=================== ================= ================== ==============
EQUITY ACCOUNTS:
Contract Owners' equity:
Units ....................................... 11,325,809.860861 8,894,539.318918 7,195,159.462360 4,142,566.314085
=================== ================= ================== ================
Unit value ................................. $ 23.887413 $ 17.473853 $ 20.789231 $ 16.614335
=================== ================= ================== ================
Contract Owners' equity ..................... $ 270,544,298 $ 155,421,873 $ 149,581,832 $ 68,825,985
------------------- ----------------- ------------------ ----------------
Depositor's equity:
Units ....................................... N/A N/A N/A N/A
=================== ================= ================== ===============
Unit value ................................. $ N/A $ N/A $ N/A $ N/A
=================== ================= ================== ===============
Depositor's equity ........................ N/A N/A N/A N/A
------------------- ----------------- ------------------ ---------------
Total equity .............................. $ 270,544,298 $ 155,421,873 $ 149,581,832 $ 68,825,985
=================== ================= ================== ===============
</TABLE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF OPERATIONS
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC EMERGING AGGRESSIVE
GLOBAL TOTAL RETURN GROWTH GROWTH
SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 1,662,923 $ 230,260 $ 0 $ 0
Capital gain distributions .............................. 2,168,752 354,233 849,145 429,434
--------------- -------------- ----------- -----------
3,831,675 584,493 849,145 429,434
EXPENSES:
Mortality and expense risk .............................. 1,504,268 883,873 872,393 399,971
--------------- -------------- ----------- -----------
Net investment income (loss) ........................... 2,327,407 (299,380) (23,248) 29,463
--------------- -------------- ----------- -----------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions 3,351,639 1,362,140 4,650,297 1,410,740
Change in unrealized appreciation (depreciation) ...... 31,644,591 16,869,683 6,120,760 7,023,455
--------------- -------------- ----------- -----------
Net gain (loss) on investments ........................ 34,996,230 18,231,823 10,771,057 8,434,195
--------------- -------------- ----------- -----------
Net increase (decrease) in equity accounts
resulting from operations ........................... $ 37,323,637 $ 17,932,443 $10,747,809 $8,463,658
=============== ============== =========== ===========
</TABLE>
(a) Prior to May 1, 1997, this portfolio was known as Equity-Income.
The notes to the financial statements are an integral part of this report.
2
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
At June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & TACTICAL ASSET
BALANCED INCOME ALLOCATION C.A.S.E. GROWTH
SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C> <C>
ASSETS:
Investments
Investment in WRL Series Fund, Inc.:
Shares .................................... 1,273,359.659 966,126.183 5,138,130.288 413,284.527
================= =============== ================== ================
Cost ....................................... $ 13,336,153 $ 11,136,182 $ 60,504,451 $ 5,370,058
================= =============== ================== ================
Investments at net asset value ............ $ 15,465,921 $ 12,200,239 $ 69,725,126 $ 5,799,806
Accrued transfers from (to) depositor - net (2,010) (43,562) 98,561 3,466
----------------- --------------- ------------------ ----------------
Total assets .............................. 15,463,911 12,156,677 69,823,687 5,803,272
----------------- --------------- ------------------ ----------------
LIABILITIES: ................................. 1,590 1,246 7,152 589
----------------- --------------- ------------------ ----------------
Total net assets ........................... $ 15,462,321 $ 12,155,431 $ 69,816,535 $ 5,802,683
================= =============== ================== ================
EQUITY ACCOUNTS:
Contract Owners' equity:
Units .................................... 1,192,831.600358 870,056.266088 4,829,326.157860 399,826.092994
================= =============== ================== ================
Unit value ................................. $ 12.962702 $ 13.970856 $ 14.456786 $ 14.513018
================= =============== ================== ================
Contract Owners' equity .................. $ 15,462,321 $ 12,155,431 $ 69,816,535 $ 5,802,683
----------------- --------------- ------------------ ----------------
Depositor's equity:
Units .................................... N/A N/A N/A N/A
================= =============== ================== ================
Unit value ................................. $ N/A $ N/A $ N/A $ N/A
================= =============== ================== ================
Depositor's equity ........................ N/A N/A N/A N/A
----------------- --------------- ------------------ ----------------
Total equity .............................. $ 15,462,321 $ 12,155,431 $ 69,816,535 $ 5,802,683
================= =============== ================== ================
</TABLE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF OPERATIONS
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & TACTICAL ASSET
BALANCED INCOME ALLOCATION C.A.S.E.GROWTH
SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 69,802 $ 27,380 $ 159,541 $ 1,856
Capital gain distributions .............................. 110,859 148,502 435,057 30,392
-------------- ------------- -------------- -------------
180,661 175,882 594,598 32,248
EXPENSES:
Mortality and expense risk .............................. 90,469 77,993 405,308 29,950
-------------- ------------- -------------- -------------
Net investment income (loss) ........................... 90,192 97,889 189,290 2,298
-------------- ------------- -------------- -------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions 202,436 550,882 1,246,561 51,676
Change in unrealized appreciation (depreciation) ...... 715,310 309,055 3,620,347 208,163
-------------- ------------- -------------- -------------
Net gain (loss) on investments ........................ 917,746 859,937 4,866,908 259,839
-------------- ------------- -------------- -------------
Net increase (decrease) in equity accounts
resulting from operations ........................... $ 1,007,938 $ 957,826 $ 5,056,198 $ 262,137
============== ============= ============== =============
</TABLE>
(a) Prior to May 1, 1997 this sub-account was known as Utility.
The notes to the financial statements are an integral part of this report.
3
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
At June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
GLOBAL SECTOR VALUE EQUITY EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C> <C>
ASSETS:
Investments
Investment in WRL Series Fund, Inc.:
Shares .................................... 224,072.104 2,796,156.362 348,417.662 612,378.105
================ ================= ================ ================
Cost ....................................... $ 2,318,952 $ 31,734,855 $ 3,638,555 $ 6,522,170
================ ================= ================ ================
Investments at net asset value ............... $ 2,516,819 $ 36,106,455 $ 3,952,508 $ 7,041,852
Accrued transfers from (to) depositor - net 58,524 (60,601) 5,311 27,252
---------------- ----------------- ---------------- ----------------
Total assets .............................. 2,575,343 36,045,854 3,957,819 7,069,104
---------------- ----------------- ---------------- ----------------
LIABILITIES: ................................. 258 3,716 407 725
---------------- ----------------- ---------------- ----------------
Total net assets ........................... $ 2,575,085 $ 36,042,138 $ 3,957,412 $ 7,068,379
================ ================= ================ ================
EQUITY ACCOUNTS:
Contract Owners' equity:
Units ....................................... 180,780.411328 2,817,716.234979 321,004.712872 603,481.118780
================ ================= ================ ================
Unit value ................................. $ 11.158275 $ 12.791259 $ 11.274527 $ 11.428609
================ ================= ================ ================
Contract Owners' equity ..................... $ 2,017,198 $ 36,042,138 $ 3,619,176 $ 6,896,950
---------------- ----------------- ---------------- ----------------
Depositor's equity:
Units ....................................... 49,997.602730 N/A 30,000.000000 15,000.000000
================ ================= ================ ================
Unit value ................................. $ 11.158275 $ N/A $ 11.274527 $ 11.428609
================ ================= ================ ================
Depositor's equity ........................ 557,887 N/A 338,236 171,429
---------------- ----------------- ---------------- ----------------
Total equity .............................. $ 2,575,085 $ 36,042,138 $ 3,957,412 $ 7,068,379
================ ================= ================ ================
</TABLE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF OPERATIONS
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
GLOBAL SECTOR VALUE EQUITY EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT (A)
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 7,013 $ 15,915 $ 0 $ 0
Capital gain distributions .............................. 0 0 0 0
------------ ------------- ---------- ----------
7,013 15,915 0 0
EXPENSES:
Mortality and expense risk .............................. 15,851 157,443 11,003 17,776
------------ ------------- ---------- ----------
Net investment income (loss) ........................... (8,838) (141,528) (11,003) (17,776)
------------ ------------- ---------- ----------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions 57,321 373,948 2,663 (61,778)
Change in unrealized appreciation (depreciation) ...... 114,531 3,192,578 313,953 519,682
------------ ------------- ---------- ----------
Net gain (loss) on investments ........................ 171,852 3,566,526 316,616 457,904
------------ ------------- ---------- ----------
Net increase (decrease) in equity accounts
resulting from operations ........................... $ 163,014 $ 3,424,998 $ 305,613 $ 440,128
============ ============= ========== ==========
</TABLE>
(a) The inception date of this sub-account was January 2, 1997.
The notes to the financial statements are an integral part of this report.
4
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
SUB-ACCOUNT SUB-ACCOUNT
June 30 December 31 June 30 December 31
1997 1996 1997 1996
---------------- -------------- ---------------- ----------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 989,946 $ 1,736,342 $ 164,569 $ 2,117,023
Net gain (loss) on investments .................. 0 0 311,926 (2,954,123)
------------ ------------- ------------ ------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 989,946 1,736,342 476,495 (837,100)
------------ ------------- ------------ ------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 8,634,897 20,115,791 (1,561,814) (1,163,641)
------------ ------------- ------------ ------------
Less cost of units redeemed:
Administrative charges ........................ 15,818 26,252 17,245 37,247
Policy loans .................................... 0 9,353 4,029 8,380
Surrender benefits ........................... 12,183,806 12,019,796 4,038,033 5,573,331
Death benefits ................................. 690,900 251,461 692,629 973,057
------------ ------------- ------------ ------------
12,890,524 12,306,862 4,751,936 6,592,015
------------ ------------- ------------ ------------
Increase (decrease) in equity accounts
from capital unit transactions ............... (4,255,627) 7,808,929 (6,313,750) (7,755,656)
------------ ------------- ------------ ------------
Net increase (decrease) in equity accounts (3,265,681) 9,545,271 (5,837,255) (8,592,756)
Depositor's equity contribution (redemption) . 0 0 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 51,140,788 41,595,517 45,516,409 54,109,165
------------ ------------- ------------ ------------
End of period ................................. $ 47,875,107 $ 51,140,788 $ 39,679,154 $ 45,516,409
============ ============= ============ ============
<CAPTION>
GROWTH
SUB-ACCOUNT
June 30 December 31
1997 1996
--------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 1,176,024 $ 29,596,208
Net gain (loss) on investments .................. 56,498,590 55,089,077
------------- -------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 57,674,614 84,685,285
------------- -------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ (857,971) 20,058,281
------------- -------------
Less cost of units redeemed:
Administrative charges ........................ 266,995 488,816
Policy loans .................................... 111,972 223,257
Surrender benefits ........................... 48,668,713 57,167,796
Death benefits ................................. 1,396,753 3,394,348
------------- -------------
50,444,433 61,274,217
------------- -------------
Increase (decrease) in equity accounts
from capital unit transactions ............... (51,302,404) (41,215,936)
------------- -------------
Net increase (decrease) in equity accounts 6,372,210 43,469,349
Depositor's equity contribution (redemption) . 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 576,115,387 532,646,038
------------- -------------
End of period ................................. $ 582,487,597 $ 576,115,387
============= =============
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING GROWTH
SUB-ACCOUNT
June 30 December 31
1997 1996
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ (23,248) $ 4,617,838
Net gain (loss) on investments ............... 10,771,057 15,398,835
------------- --------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 10,747,809 20,016,673
------------- --------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 3,038,116 17,337,483
------------- --------------
Less cost of units redeemed:
Administrative charges ........................ 55,130 99,632
Policy loans ................................. 9,978 89,701
Surrender benefits ........................... 7,261,489 9,349,520
Death benefits .............................. 159,177 330,930
------------- --------------
7,485,774 9,869,783
------------- --------------
Increase (decrease) in equity accounts
from capital unit transactions ............... (4,447,658) 7,467,700
------------- --------------
Net increase (decrease) in equity accounts . 6,300,151 27,484,373
Depositor's equity contribution (redemption) ... 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 143,281,681 115,797,308
------------- --------------
End of period ................................. $ 149,581,832 $ 143,281,681
============= ==============
<CAPTION>
AGGRESSIVE GROWTH BALANCED
SUB-ACCOUNT SUB-ACCOUNT
June 30 December 31 June 30 December 31
1997 1996 1997 1996
---------------- ---------------- -------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 29,463 $ 1,122,270 $ 90,192 $ 280,895
Net gain (loss) on investments ............... 8,434,195 3,923,951 917,746 814,192
------------ ------------ ------------- ------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 8,463,658 5,046,221 1,007,938 1,095,087
------------ ------------ ------------- ------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 442,499 (1,289,738) 1,543,569 2,215,506
------------ ------------ ------------- ------------
Less cost of units redeemed:
Administrative charges ........................ 27,474 47,456 5,614 8,994
Policy loans ................................. 20,136 28,385 5,077 7,719
Surrender benefits ........................... 3,297,101 5,021,875 609,173 789,474
Death benefits .............................. 578,299 482,273 66,920 30,797
------------ ------------ ------------- ------------
3,923,010 5,579,989 686,784 836,984
------------ ------------ ------------- ------------
Increase (decrease) in equity accounts
from capital unit transactions ............... (3,480,511) (6,869,727) 856,785 1,378,522
------------ ------------ ------------- ------------
Net increase (decrease) in equity accounts . 4,983,147 (1,823,506) 1,864,723 2,473,609
Depositor's equity contribution (redemption) ... 0 0 0 (218,651)
EQUITY ACCOUNTS:
Beginning of period ........................... 63,842,838 65,666,344 13,597,598 11,342,640
------------ ------------ ------------- ------------
End of period ................................. $ 68,825,985 $ 63,842,838 $ 15,462,321 $ 13,597,598
============ ============ ============= ============
</TABLE>
The notes to the financial statements are an integral part of this report.
5
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TO INTERMEDIATE
GOVERNMENT GLOBAL
SUB-ACCOUNT SUB-ACCOUNT
June 30 December 31 June 30 December 31
1997 1996 1997 1996
--------------- ------------- --------------- ---------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 38,471 $ 319,661 $ 2,327,407 $ 16,551,363
Net gain (loss) on investments .................. 95,603 (140,436) 34,996,230 25,768,741
------------- ----------- -------------- --------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 134,074 179,225 37,323,637 42,320,104
------------- ----------- -------------- --------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ (611,346) (75,931) 26,819,074 52,563,710
------------- ----------- -------------- --------------
Less cost of units redeemed:
Administrative charges ........................ 2,265 4,880 89,423 137,643
Policy loans ................................. 0 0 27,404 83,013
Surrender benefits ........................... 962,776 656,540 14,220,046 14,292,685
Death benefits ................................. 8,660 29,829 446,169 610,901
------------- ----------- -------------- --------------
973,701 691,249 14,783,042 15,124,242
------------- ----------- -------------- --------------
Increase (decrease) in equity accounts
from capital unit transactions ............... (1,585,047) (767,180) 12,036,032 37,439,468
------------- ----------- -------------- --------------
Net increase (decrease) in equity accounts (1,450,973) (587,955) 49,359,669 79,759,572
Depositor's equity contribution (redemption) . 0 0 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 8,624,882 9,212,837 221,184,629 141,425,057
------------- ----------- -------------- --------------
End of period ................................. $ 7,173,909 $ 8,624,882 $ 270,544,298 $ 221,184,629
============= =========== ============== ==============
<CAPTION>
STRATEGIC
TOTAL RETURN
SUB-ACCOUNT (A)
June 30 December 31
1997 1996
--------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ (299,380) $ 6,041,818
Net gain (loss) on investments .................. 18,231,823 10,207,405
------------- --------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 17,932,443 16,249,223
------------- --------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 7,840,455 14,094,848
------------- --------------
Less cost of units redeemed:
Administrative charges ........................ 47,624 81,004
Policy loans ................................. 0 43,799
Surrender benefits ........................... 6,789,072 9,351,749
Death benefits ................................. 303,352 452,886
------------- --------------
7,140,048 9,929,438
------------- --------------
Increase (decrease) in equity accounts
from capital unit transactions ............... 700,407 4,165,410
------------- --------------
Net increase (decrease) in equity accounts 18,632,850 20,414,633
Depositor's equity contribution (redemption) . 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 136,789,023 116,374,390
------------- --------------
End of period ................................. $ 155,421,873 $ 136,789,023
============= ==============
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH &
INCOME
SUB-ACCOUNT (B)
June 30 December 31
1997 1996
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 97,889 $ 510,515
Net gain (loss) on investments .................. 859,937 592,788
------------ ------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 957,826 1,103,303
------------ ------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ (475,615) 1,291,325
------------ ------------
Less cost of units redeemed:
Administrative charges ........................ 4,331 6,938
Policy loans ................................. 1,195 1,483
Surrender benefits ........................... 701,358 1,580,568
Death benefits ................................. 17,219 67,595
------------ ------------
724,103 1,656,584
------------ ------------
Increase (decrease) in equity accounts
from capital unit transactions ............... (1,199,718) (365,259)
------------ ------------
Net increase (decrease) in equity accounts (241,892) 738,044
Depositor's equity contribution (redemption) . 0 (231,034)
EQUITY ACCOUNTS:
Beginning of period ........................... 12,397,323 11,890,313
------------ ------------
End of period ................................. $ 12,155,431 $ 12,397,323
============ ============
<CAPTION>
TACTICAL ASSET
ALLOCATION C.A.S.E. GROWTH
SUB-ACCOUNT SUB-ACCOUNT
June 30 December 31 June 30 December 31
1997 1996 1997 1996 (c)
-------------- -------------- ------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 189,290 $ 1,857,358 $ 2,298 $ 57,591
Net gain (loss) on investments .................. 4,866,908 4,479,938 259,839 227,871
------------- ------------- ------------ ------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 5,056,198 6,337,296 262,137 285,462
------------- ------------- ------------ ------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 5,148,775 24,484,490 2,123,050 3,388,144
------------- ------------- ------------ ------------
Less cost of units redeemed:
Administrative charges ........................ 19,332 25,024 1,133 462
Policy loans ................................. 0 0 1,348 813
Surrender benefits ........................... 2,344,562 3,369,971 186,277 60,716
Death benefits ................................. 219,976 141,303 5,361 0
------------- ------------- ------------ ------------
2,583,870 3,536,298 194,119 61,991
------------- ------------- ------------ ------------
Increase (decrease) in equity accounts
from capital unit transactions ............... 2,564,905 20,948,192 1,928,931 3,326,153
------------- ------------- ------------ ------------
Net increase (decrease) in equity accounts 7,621,103 27,285,488 2,191,068 3,611,615
Depositor's equity contribution (redemption) . 0 0 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 62,195,432 34,909,944 3,611,615 0
------------- ------------- ------------ ------------
End of period ................................. $ 69,816,535 $ 62,195,432 $ 5,802,683 $ 3,611,615
============= ============= ============ ============
</TABLE>
(a) Prior to May 1, 1997 this sub-account was known as Equity-Income.
(b) Prior to May 1, 1997, this sub-account was known as Utility.
(c) The inception date of this sub-account was May 1, 1996.
The notes to the financial statements are an integral part of this report.
6
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL SECTOR VALUE EQUITY
SUB-ACCOUNT SUB-ACCOUNT
June 30 December 31 June 30 December 31
1997 1996 (a) 1997 1996 (a)
---------------- ------------- ----------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ (8,838) $ (945) $ (141,528) $ 15,099
Net gain (loss) on investments ............... 171,852 138,168 3,566,526 1,196,271
------------ ----------- ------------- ------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 163,014 137,223 3,424,998 1,211,370
------------ ----------- ------------- ------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 129,830 2,131,630 17,127,082 15,672,280
------------ ----------- ------------- ------------
Less cost of units redeemed:
Administrative charges ........................ 646 213 5,378 1,691
Policy loans ................................. 0 3,515 0 589
Surrender benefits ........................... 128,725 348,327 979,299 263,664
Death benefits .............................. 5,186 0 32,363 88,989
------------ ----------- ------------- ------------
134,557 352,055 1,017,040 354,933
------------ ----------- ------------- ------------
Increase (decrease) in equity accounts
from capital unit transactions ............... (4,727) 1,779,575 16,110,042 15,317,347
------------ ----------- ------------- ------------
Net increase (decrease) in equity accounts . 158,287 1,916,798 19,535,040 16,528,717
Depositor's equity contribution (redemption) ... 0 500,000 (171,619) 150,000
EQUITY ACCOUNTS:
Beginning of period ........................... 2,416,798 0 16,678,717 0
------------ ----------- ------------- ------------
End of period ................................. $ 2,575,085 $2,416,798 $ 36,042,138 $16,678,717
============ =========== ============= ============
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT
June 30 June 30
1997 (b) 1997 (b)
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ............... $ (11,003) $ (17,776)
Net gain (loss) on investments ............... 316,616 457,904
------------- -------------
Net increase (decrease) in equity accounts
resulting from operations .................. 305,613 440,128
------------- -------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ......... 3,366,494 6,643,919
------------- -------------
Less cost of units redeemed:
Administrative charges ..................... 225 915
Policy loans .............................. 0 0
Surrender benefits ........................ 14,470 164,753
Death benefits .............................. 0 0
------------- -------------
14,695 165,668
------------- -------------
Increase (decrease) in equity accounts
from capital unit transactions ............ 3,351,799 6,478,251
------------- -------------
Net increase (decrease) in equity accounts . 3,657,412 6,918,379
Depositor's equity contribution (redemption) 300,000 150,000
EQUITY ACCOUNTS:
Beginning of period ........................ 0 0
------------- -------------
End of period .............................. $ 3,957,412 $ 7,068,379
============= =============
</TABLE>
(a) The inception date of this sub-account was May 1, 1996.
(b) The inception date of this sub-account was January 2, 1997.
The notes to the financial statements are an integral part of this report.
7
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET SUB-ACCOUNT
December 31
June 30 -------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
------------ ------------ ------------- ------------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 13.29 $ 12.80 $ 12.29 $ 12.03 $ 11.89 $ 11.68
Income from operations:
Net investment income (loss) ............... 0.25 0.49 0.51 0.26 0.14 0.21
Net realized and unrealized gain (loss)
on investments .............................. 0.00 0.00 0.00 0.00 0.00 0.00
-------- -------- ---------- ---------- ----------- ----------
Total income (loss) from operations ...... 0.25 0.49 0.51 0.26 0.14 0.21
-------- -------- ---------- ---------- ----------- ----------
Accumulation unit value, end of period ...... $ 13.54 $ 13.29 $ 12.80 $ 12.29 $ 12.03 $ 11.89
======== ======== ========== ========== =========== ==========
Total return (a) .............................. 1.93% 3.81% 4.12% 2.22% 1.16% 1.77%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 47,875 $ 51,141 $ 41,596 $ 55,318 $ 32,943 $ 41,133
Ratios of net investment income (loss)
to average net assets (b) ..................... 3.83% 3.72% 4.03% 2.28% 1.15% 1.73%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOND SUB-ACCOUNT
December 31
June 30 --------------------------
1997 1996 1995
------------ ----------- --------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 18.11 $ 18.31 $ 15.08
Income from operations:
Net investment income (loss) ............... 0.07 0.77 0.83
Net realized and unrealized gain (loss)
on investments .............................. 0.16 (0.97) 2.40
-------- ---------- ----------
Total income (loss) from operations ...... 0.23 (0.20) 3.23
-------- ---------- ----------
Accumulation unit value, end of period ...... $ 18.34 $ 18.11 $ 18.31
======== ========== ==========
Total return (a) .............................. 1.27% (1.10%) 21.46%
Ratios and supplemental data:
Net assets at end of period (in thousands) $ 39,679 $ 45,516 $ 54,109
Ratios of net investment income (loss)
to average net assets (b) .................. 0.79% 4.34% 4.94%
<CAPTION>
1994 1993 1992
-------------- -------------- --------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 16.40 $ 14.65 $ 13.89
Income from operations:
Net investment income (loss) ............... 0.72 1.67 1.16
Net realized and unrealized gain (loss)
on investments .............................. (2.04) 0.08 (0.40)
-------------- ---------- ----------
Total income (loss) from operations ...... (1.32) 1.75 0.76
-------------- ---------- ----------
Accumulation unit value, end of period ...... $ 15.08 $ 16.40 $ 14.65
============== ========== ==========
Total return (a) .............................. (8.10%) 11.97% 5.44%
Ratios and supplemental data:
Net assets at end of period (in thousands) $ 47,193 $ 66,483 $ 52,234
Ratios of net investment income (loss)
to average net assets (b) .................. 4.69% 10.94% 8.18%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH SUB-ACCOUNT
December 31
June 30 ----------------------------
1997 1996 1995
------------- ------------- --------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 33.17 $ 28.47 $ 19.60
Income from operations:
Net investment income (loss) ............... 0.07 1.64 2.35
Net realized and unrealized gain (loss)
on investments .............................. 3.52 3.06 6.52
--------- --------- -----------
Total income (loss) from operations ...... 3.59 4.70 8.87
--------- --------- -----------
Accumulation unit value, end of period ...... $ 36.76 $ 33.17 $ 28.47
========= ========= ===========
Total return (a) .............................. 10.82% 16.50% 45.29%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 582,488 $ 576,115 $ 532,646
Ratios of net investment income (loss)
to average net assets (b) .................. 0.41% 5.22% 9.81%
<CAPTION>
1994 1993 1992
-------------- ------------- --------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 21.64 $21.07 $ 20.85
Income from operations:
Net investment income (loss) ............... (0.06) 0.20 0.80
Net realized and unrealized gain (loss)
on investments .............................. (1.98) 0.37 (0.58)
------------- ------------ -----------
Total income (loss) from operations ...... (2.04) 0.57 0.22
------------- ------------ -----------
Accumulation unit value, end of period ...... $ 19.60 $21.64 $ 21.07
============= ============ ===========
Total return (a) .............................. (9.45%) 2.69% 1.07%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 409,881 $ 575,024 $ 555,268
Ratios of net investment income (loss)
to average net assets (b) .................. (0.28%) 0.99% 4.07%
</TABLE>
The notes to the financial statements are an integral part of this report.
8
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TO-INTERMEDIATE
GOVERNMENT
SUB-ACCOUNT
December 31
June 30 --------------------------
1997 1996 1995
----------- ----------- --------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 11.68 $ 11.43 $ 10.19
Income from operations:
Net investment income (loss) ............... 0.06 0.42 0.49
Net realized and unrealized gain (loss)
on investments .............................. 0.16 (0.17) 0.75
------- --------- ------------
Total income (loss) from operations ...... 0.22 0.25 1.24
------- --------- ------------
Accumulation unit value, end of period ...... $ 11.90 $ 11.68 $ 11.43
======= ========= ============
Total return (a) .............................. 1.88% 2.20% 12.13%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 7,174 $ 8,625 $ 9,213
Ratios of net investment income (loss)
to average net assets (b) ..................... 1.03% 3.70% 4.59%
<CAPTION>
SHORT-TO-INTERMEDIATE GOVERNMENT
1994 1993 1992 (c)
-------------- --------------- -------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 10.36 $ 10.04 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.37 0.21 0.01
Net realized and unrealized gain (loss)
on investments .............................. (0.54) 0.11 0.03
-------------- ----------- -----------
Total income (loss) from operations ...... (0.17) 0.32 0.04
-------------- ----------- -----------
Accumulation unit value, end of period ...... $ 10.19 $ 10.36 $ 10.04
============== =========== ===========
Total return (a) .............................. (1.66%) 3.28% 0.36%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 7,836 $ 10,010 $ 853
Ratios of net investment income (loss)
to average net assets (b) ..................... 3.67% 2.08% 1.68%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL SUB-ACCOUNT
December 31
June 30 ----------------------------
1997 1996 1995
------------- ------------- --------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 20.55 $ 16.29 $ 13.40
Income from operations:
Net investment income (loss) ............... 0.21 1.62 0.42
Net realized and unrealized gain (loss)
on investments .............................. 3.13 2.64 2.47
--------- --------- -----------
Total income (loss) from operations ...... 3.34 4.26 2.89
--------- --------- -----------
Accumulation unit value, end of period ...... $ 23.89 $ 20.55 $ 16.29
========= ========= ===========
Total return (a) .............................. 16.25% 26.15% 21.53%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 270,544 $ 221,185 $ 141,425
Ratios of net investment income (loss)
to average net assets (b) .................. 1.92% 8.60% 2.89%
<CAPTION>
1994 1993 1992 (c)
-------------- -------------- --------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 13.54 $ 10.15 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.45 0.16 (0.01)
Net realized and unrealized gain (loss)
on investments .............................. (0.59) 3.23 0.16
------------- ------------ --------------
Total income (loss) from operations ...... (0.14) 3.39 0.15
------------- ------------ --------------
Accumulation unit value, end of period ...... $ 13.40 $ 13.54 $ 10.15
============= ============ ==============
Total return (a) .............................. (0.99%) 33.34% 1.52%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 144,705 $ 69,665 $ 254
Ratios of net investment income (loss)
to average net assets (b) .................. 3.40% 1.40% (1.20%)
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC TOTAL RETURN
SUB-ACCOUNT (I)
December 31
June 30 ---------------------------------------------------------
1997 1996 1995 1994 1993 (d)
-------------- ------------ -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 15.46 $ 13.61 $ 11.06 $ 11.25 $ 10.00
Income from operations:
Net investment income (loss) ............... (0.03) 0.68 0.59 0.16 0.16
Net realized and unrealized gain (loss)
on investments ........................... 2.04 1.17 1.96 (0.35) 1.09
----------- --------- ----------- -------------- ------------
Total income (loss) from operations ...... 2.01 1.85 2.55 (0.19) 1.25
----------- --------- ----------- -------------- ------------
Accumulation unit value, end of period ...... $ 17.47 $ 15.46 $ 13.61 $ 11.06 $ 11.25
=========== ========= =========== ============== ============
Total return (a) .............................. 13.05% 13.57% 23.11% (1.77%) 12.54%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 155,422 $ 136,789 $ 116,374 $ 88,607 $ 49,240
Ratios of net investment income (loss)
to average net assets (b) .................. (0.42%) 4.75% 4.74% 1.43% 1.84%
</TABLE>
The notes to the financial statements are an integral part of this report.
9
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING GROWTH SUB-ACCOUNT
December 31
June 30 ---------------------------------------------------------
1997 1996 1995 1994 1993 (d)
-------------- ------------ -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 19.26 $ 16.40 $ 11.31 $ 12.37 $ 10.00
Income from operations:
Net investment income (loss) ............... (0.01) 0.63 0.51 (0.13) (0.12)
Net realized and unrealized gain (loss)
on investments .............................. 1.54 2.23 4.58 (0.93) 2.49
----------- --------- ----------- -------------- --------------
Total income (loss) from operations ...... 1.53 2.86 5.09 (1.06) 2.37
----------- --------- ----------- -------------- --------------
Accumulation unit value, end of period ...... $ 20.79 $ 19.26 $ 16.40 $ 11.31 $ 12.37
=========== ========= =========== ============== ==============
Total return (a) .............................. 7.95% 17.41% 44.97% (8.51%) 23.67%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 149,582 $ 143,282 $ 115,797 $ 83,480 $ 58,794
Ratios of net investment income (loss)
to average net assets (b) ..................... (0.03%) 3.42% 3.68% (1.21%) (1.30%)
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH SUB-ACCOUNT
December 31
June 30 ------------------------------------------
1997 1996 1995 1994 (e)
----------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 14.56 $ 13.35 $ 9.79 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.01 0.25 0.29 (0.08)
Net realized and unrealized gain (loss)
on investments .............................. 2.04 0.96 3.27 (0.13)
------- --------- ---------- -------------
Total income (loss) from operations ...... 2.05 1.21 3.56 (0.21)
------- --------- ---------- -------------
Accumulation unit value, end of period ...... $ 16.61 $ 14.56 $ 13.35 $ 9.79
======= ========= ========== =============
Total return (a) .............................. 14.13% 9.07% 36.31% (2.08%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $68,826 $ 63,843 $ 65,666 $ 18,555
Ratios of net investment income (loss)
to average net assets (b) .................. 0.09% 1.77% 2.28% (1.04%)
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED SUB-ACCOUNT
December 31
June 30 -----------------------------------------
1997 1996 1995 1994 (e)
------------ ------------ ------------- --------------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 12.09 $ 11.06 $ 9.35 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.07 0.26 0.29 0.21
Net realized and unrealized gain (loss)
on investments .............................. 0.80 0.77 1.42 (0.86)
-------- -------- ---------- -------------
Total income (loss) from operations ...... 0.87 1.03 1.71 (0.65)
-------- -------- ---------- -------------
Accumulation unit value, end of period ...... $ 12.96 $ 12.09 $ 11.06 $ 9.35
======== ======== ========== =============
Total return (a) .............................. 7.19% 9.34% 18.31% (6.52%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 15,462 $ 13,598 $ 11,343 $ 9,379
Ratios of net investment income (loss)
to average net assets (b) .................. 1.23% 2.29% 2.85% 2.63%
</TABLE>
The notes to the financial statements are an integral part of this report.
10
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & INCOME SUB-ACCOUNT (J)
December 31
June 30 ----------------------------------------
1997 1996 1995 1994 (e)
------------ ----------- ------------- --------------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 12.91 $ 11.71 $ 9.46 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.11 0.50 0.45 0.32
Net realized and unrealized gain (loss)
on investments .............................. 0.95 0.70 1.80 (0.86)
-------- ------- ---------- -------------
Total income (loss) from operations ...... 1.06 1.20 2.25 (0.54)
-------- ------- ---------- -------------
Accumulation unit value, end of period ......... $ 13.97 $ 12.91 $ 11.71 $ 9.46
======== ======= ========== =============
Total return (a) .............................. 8.26% 10.25% 23.70% (5.37%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 12,155 $12,397 $ 11,890 $ 5,506
Ratios of net investment income (loss)
to average net assets (b) ..................... 1.56% 4.17% 4.26% 4.07%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TACTICAL ASSET ALLOCATION
SUB-ACCOUNT
December 31
June 30 --------------------------
1997 1996 1995 (f)
------------ ----------- --------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 13.40 $ 11.86 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.03 0.46 0.58
Net realized and unrealized gain (loss)
on investments .............................. 1.03 1.08 1.28
-------- ------- -----------
Total income (loss) from operations ...... 1.06 1.54 1.86
-------- ------- -----------
Accumulation unit value, end of period ...... $ 14.46 $ 13.40 $ 11.86
======== ======= ===========
Total return (a) .............................. 7.86% 13.00% 18.61%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 69,817 $62,195 $ 34,910
Ratios of net investment income (loss)
to average net assets (b) .................. 0.58% 3.71% 5.25%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
C.A.S.E. GROWTH
SUB-ACCOUNT
June 30 December 31
1997 1996 (g)
--------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period $13.88 $ 12.87
Income from operations:
Net investment income (loss) ............... 0.01 0.39
Net realized and unrealized gain (loss)
on investments .............................. 0.62 0.62
------- -------
Total income (loss) from operations ...... 0.63 1.01
------- -------
Accumulation unit value, end of period ...... $14.51 $ 13.88
======= =======
Total return (a) .............................. 4.54% 7.84%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $5,803 $ 3,612
Ratios of net investment income (loss)
to average net assets (b) .................. 0.09% 4.43%
</TABLE>
The notes to the financial statements are an integral part of this report.
11
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL SECTOR
SUB-ACCOUNT
June 30 December 31
1997 1996 (g)
------------ ------------
<S> <C> <C>
Accumulation unit value, beginning of period $ 10.52 $ 10.00
Income from operations:
Net investment income (loss) ............... (0.04) (0.01)
Net realized and unrealized gain (loss)
on investments .............................. 0.68 0.53
---------- ----------
Total income (loss) from operations ...... 0.64 0.52
---------- ----------
Accumulation unit value, end of period ...... $ 11.16 $ 10.52
========== ==========
Total return (a) .............................. 6.07% 5.19%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 2,575 $ 2,417
Ratios of net investment income (loss)
to average net assets (b) .................. (0.69%) (0.09%)
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE EQUITY
SUB-ACCOUNT
June 30 December 31
1997 1996 (g)
------------ ------------
<S> <C> <C>
Accumulation unit value, beginning of period $ 11.22 $ 10.00
Income from operations:
Net investment income (loss) ............... (0.06) 0.02
Net realized and unrealized gain (loss)
on investments .............................. 1.63 1.20
---------- -------
Total income (loss) from operations ...... 1.57 1.22
---------- -------
Accumulation unit value, end of period ...... $ 12.79 $ 11.22
========== =======
Total return (a) .............................. 13.96% 12.25%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 36,042 $16,679
Ratios of net investment income (loss)
to average net assets (b) .................. (1.11%) 0.30%
</TABLE>
The notes to the financial statements are an integral part of this report.
12
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT
June 30 June 30
1997 (h) 1997 (h)
-------------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period ... $ 10.00 $ 10.00
Income from operations:
Net investment income (loss) .................. (0.06) (0.07)
Net realized and unrealized gain (loss)
on investments .............................. 1.33 1.50
---------- ----------
Total income (loss) from operations ......... 1.27 1.43
---------- ----------
Accumulation unit value, end of period ......... $ 11.27 $ 11.43
========== ==========
Total return (a) .............................. 12.75% 14.29%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 3,957 $ 7,068
Ratios of net investment income (loss)
to average net assets (b) ..................... (1.22%) (1.22%)
</TABLE>
NOTES TO SELECTED PER UNIT DATA AND RATIOS
* The above tables illustrate the change for a unit outstanding computed
using average units outstanding throughout each period.
(a) For periods less than one year, the total return is not annualized.
(b) For periods less than one year, the ratio of net investment income to
average net assets is annualized.
(c) The inception date of this sub-account was December 3, 1992.
(d) The inception date of this sub-account was March 1, 1993.
(e) The inception date of this sub-account was March 1, 1994.
(f) The inception date of this sub-account was January 3, 1995.
(g) This inception date of this sub-account was May 1, 1996.
(h) The inception date of this sub-account was January 2, 1997.
(i) Prior to May 1, 1997, this sub-account was known as Equity-Income.
(j) Prior to May 1, 1997, this sub-account was know as Utility.
The notes to the financial statements are an integral part of this report.
13
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED)
- --------------------------------------------------------------------------------
June 30, 1997
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 sixteen investment options
referred to as Sub-Accounts. Each Sub-Account invests in the corresponding
Portfolio (the "Portfolios") 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 Sub-Advisers are as
follows:
<TABLE>
<CAPTION>
PORTFOLIO SUB-ADVISER
- ------------------------ ----------------------------
<S> <C>
Money Market J.P. Morgan Investment
Management Inc.
Bond Janus Capital Corporation
("JCC")
Growth JCC
Short-to-Intermediate AEGON USA Investment
Government Management, Inc. ("AIMI")
Global JCC
Strategic Total Return Luther King Capital
Management Corporation
Emerging Growth Van Kampen American
Capital Asset
Management, Inc.
Aggressive Growth Fred Alger Management, Inc.
Balanced AIMI
Growth & Income Federated Investment
Counseling
Tactical Asset Dean Investment Associates
Allocation
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIO SUB-ADVISER
- ----------------- ------------------------------
<S> <C>
C.A.S.E. Growth C.A.S.E. Management, Inc.
Global Sector Meridian Investment
Management Corporation
Value Equity NWQ Investment Management
Company, Inc.
International Scottish Equitable Investment
Equity Management, Ltd. and GE
Investment Management
Incorporated
U.S. Equity GE Investment Management
Incorporated
</TABLE>
WRL and AIMI are indirect wholly-owned subsidiaries of AEGON USA, Inc.,
which, along with Scottish Equitable Investment Management, Ltd. are indirect
wholly-owned subsidiaries of AEGON nv, a Netherlands corporation.
On January 2, 1997 WRL made an initial contribution of $ 450,000 to the
Annuity Account. The amount of the contribution and units received are as
follows:
<TABLE>
<CAPTION>
SUB-ACCOUNT CONTRIBUTION UNITS
- ---------------------- -------------- --------------
<S> <C> <C>
International Equity $ 300,000 30,000.000000
U.S. Equity $ 150,000 15,000.000000
</TABLE>
Annuity #1 Sub-Accounts hold assets that 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.
14
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1 (CONTINUED)
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 June 30, 1997.
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.
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 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 typically
declared and reinvested semi-annually, while capital gain distributions are
typically 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 June 30, 1997, the equity accounts include net unrealized
appreciation (depreciation) on investments as follows:
<TABLE>
<CAPTION>
SUB-ACCOUNT
- ----------------------------------
<S> <C>
Money Market $ N/A
Bond (909,284)
Growth 168,110,120
Short-to-Intermediate Government (22,313)
Global 70,914,376
Strategic Total Return 38,497,667
Emerging Growth 41,384,287
Aggressive Growth 8,618,444
Balanced 2,129,769
Growth & Income 1,064,057
Tactical Asset Allocation 9,220,675
C.A.S.E. Growth 429,748
Global Sector 197,867
Value Equity 4,371,600
International Equity 313,953
U.S. Equity 519,682
</TABLE>
15
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
At June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C>
ASSETS:
Investments
Investment in WRL Series Fund, Inc.:
Shares .................................... 65,861,235.320 3,756,368.759
=================== ==================
Cost ....................................... $ 65,861,235 $ 40,594,202
=================== ==================
Investments at net asset value ............... $ 65,861,235 $ 40,546,424
Accrued transfers from (to) depositor - net 181,780 (96,908)
------------------- ------------------
Total assets .............................. 66,043,015 40,449,516
------------------- ------------------
LIABILITIES: ................................. 7,608 4,679
------------------- ------------------
Total net assets ........................... $ 66,035,407 $ 40,444,837
=================== ==================
EQUITY ACCOUNTS:
Contract Owners' equity:
Units ....................................... 5,830,968.292957 3,208,941.954611
=================== ==================
Unit value ................................. $ 11.324947 $ 12.603792
=================== ==================
Contract Owners' equity ..................... $ 66,035,407 $ 40,444,837
------------------- ------------------
Depositor's equity:
Units ....................................... N/A N/A
=================== ==================
Unit value ................................. $ N/A $ N/A
=================== ==================
Depositor's equity ........................ N/A N/A
------------------- ------------------
Total equity .............................. $ 66,035,407 $ 40,444,837
=================== ==================
<CAPTION>
SHORT-TO-
INTERMEDIATE
GROWTH GOVERNMENT
SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C>
ASSETS:
Investments
Investment in WRL Series Fund, Inc.:
Shares .................................... 9,917,045.859 1,560,683.300
==================== ==================
Cost ....................................... $ 306,300,536 $ 16,177,658
==================== ==================
Investments at net asset value ............... $ 383,962,201 $ 16,197,080
Accrued transfers from (to) depositor - net 479,961 (4,472)
-------------------- ------------------
Total assets .............................. 384,442,162 16,192,608
-------------------- ------------------
LIABILITIES: ................................. 44,577 1,866
-------------------- ------------------
Total net assets ........................... $ 384,397,585 $ 16,190,742
==================== ==================
EQUITY ACCOUNTS:
Contract Owners' equity:
Units ....................................... 21,669,152.191353 1,370,062.853607
==================== ==================
Unit value ................................. $ 17.739392 $ 11.817518
==================== ==================
Contract Owners' equity ..................... $ 384,397,585 $ 16,190,742
-------------------- ------------------
Depositor's equity:
Units ....................................... N/A N/A
==================== ==================
Unit value ................................. $ N/A $ N/A
==================== ==================
Depositor's equity ........................ N/A N/A
-------------------- ------------------
Total equity .............................. $ 384,397,585 $ 16,190,742
==================== ==================
</TABLE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
STATEMENT OF OPERATIONS
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET
SUB-ACCOUNT
<S> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 1,627,230
Capital gain distributions .............................. 0
------------------
1,627,230
EXPENSES:
Mortality and expense risk .............................. 445,893
------------------
Net investment income (loss) ........................... 1,181,337
------------------
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 ........................... $ 1,181,337
==================
<CAPTION>
SHORT-TO-
INTERMEDIATE
BOND GROWTH GOVERNMENT
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 432,328 $ 465,756 $ 189,113
Capital gain distributions .............................. 0 2,616,472 0
------------------ ------------------ ------------------
432,328 3,082,228 189,113
EXPENSES:
Mortality and expense risk .............................. 268,337 2,373,224 108,095
------------------ ------------------ ------------------
Net investment income (loss) ........................... 163,991 709,004 81,018
------------------ ------------------ ------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions 162,845 2,429,295 76,145
Change in unrealized appreciation (depreciation) ...... 144,158 32,790,843 124,884
------------------ ------------------ ------------------
Net gain (loss) on investments ........................ 307,003 35,220,138 201,029
------------------ ------------------ ------------------
Net increase (decrease) in equity accounts
resulting from operations ........................... $ 470,994 $ 35,929,142 $ 282,047
================== ================== ==================
</TABLE>
The notes to the financial statements are an integral part of this report.
16
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
At June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL
SUB-ACCOUNT
<S> <C>
ASSETS:
Investments
Investment in WRL Series Fund, Inc.:
Shares .................................... 15,786,843.008
====================
Cost ....................................... $ 265,033,908
====================
Investments at net asset value ............... $ 329,838,996
Accrued transfers from (to) depositor - net 675,663
--------------------
Total assets .............................. 330,514,659
--------------------
LIABILITIES: ................................. 38,205
--------------------
Total net assets ........................... $ 330,476,454
====================
EQUITY ACCOUNTS:
Contract Owners' equity:
Units ....................................... 13,926,691.183487
====================
Unit value ................................. $ 23.729718
====================
Contract Owners' equity ..................... $ 330,476,454
--------------------
Depositor's equity:
Units ....................................... N/A
====================
Unit value ................................. $ N/A
====================
Depositor's equity ........................ N/A
--------------------
Total equity .............................. $ 330,476,454
====================
<CAPTION>
STRATEGIC EMERGING AGGRESSIVE
TOTAL RETURN GROWTH GROWTH
SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C>
ASSETS:
Investments
Investment in WRL Series Fund, Inc.:
Shares .................................... 15,530,510.643 10,704,362.343 8,018,954.637
==================== ==================== ===================
Cost ....................................... $ 201,102,588 $ 173,634,891 $ 112,387,762
==================== ==================== ===================
Investments at net asset value ............... $ 245,903,065 $ 213,420,013 $ 129,743,309
Accrued transfers from (to) depositor - net 283,758 219,473 280,705
-------------------- -------------------- -------------------
Total assets .............................. 246,186,823 213,639,486 130,024,014
-------------------- -------------------- -------------------
LIABILITIES: ................................. 28,253 24,467 14,954
-------------------- -------------------- -------------------
Total net assets ........................... $ 246,158,570 $ 213,615,019 $ 130,009,060
==================== ==================== ===================
EQUITY ACCOUNTS:
Contract Owners' equity:
Units ....................................... 14,175,685.629188 10,339,791.166059 7,862,397.999963
==================== ==================== ===================
Unit value ................................. $ 17.364844 $ 20.659510 $ 16.535548
==================== ==================== ===================
Contract Owners' equity ..................... $ 246,158,570 $ 213,615,019 $ 130,009,060
-------------------- -------------------- -------------------
Depositor's equity:
Units ....................................... N/A N/A N/A
==================== ==================== ===================
Unit value ................................. $ N/A $ N/A $ N/A
==================== ==================== ===================
Depositor's equity ........................ N/A N/A N/A
-------------------- -------------------- -------------------
Total equity .............................. $ 246,158,570 $ 213,615,019 $ 130,009,060
==================== ==================== ===================
</TABLE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
STATEMENT OF OPERATIONS
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL
SUB-ACCOUNT
<S> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 2,020,967
Capital gain distributions .............................. 2,635,706
--------------------
4,656,673
EXPENSES:
Mortality and expense risk .............................. 1,893,673
--------------------
Net investment income (loss) ........................... 2,763,000
--------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions 855,189
Change in unrealized appreciation (depreciation) ...... 38,978,911
--------------------
Net gain (loss) on investments ........................ 39,834,100
--------------------
Net increase (decrease) in equity accounts
resulting from operations ........................... $ 42,597,100
====================
<CAPTION>
STRATEGIC EMERGING AGGRESSIVE
TOTAL RETURN GROWTH GROWTH
SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 363,342 $ 0 $ 0
Capital gain distributions .............................. 558,966 1,209,370 807,639
------------------ ------------------ -----------------
922,308 1,209,370 807,639
EXPENSES:
Mortality and expense risk .............................. 1,493,607 1,312,270 785,998
------------------ ------------------ -----------------
Net investment income (loss) ........................... (571,299) (102,900) 21,641
------------------ ------------------ -----------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions 807,435 3,769,328 1,740,978
Change in unrealized appreciation (depreciation) ...... 27,008,455 11,937,438 13,480,420
------------------ ------------------ -----------------
Net gain (loss) on investments ........................ 27,815,890 15,706,766 15,221,398
------------------ ------------------ -----------------
Net increase (decrease) in equity accounts
resulting from operations ........................... $ 27,244,591 $ 15,603,866 $ 15,243,039
================== ================== =================
</TABLE>
(a) Prior to May 1, 1997, this sub-account was known as Equity-Income.
The notes to the financial statements are an integral part of this report.
17
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
At June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & TACTICAL ASSET
BALANCED INCOME ALLOCATION C.A.S.E. GROWTH
SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C> <C>
ASSETS:
Investments
Investment in WRL Series Fund, Inc.:
Shares .................................... 2,986,549.578 2,025,980.017 12,401,004.446 1,467,956.528
================== ================== =================== ===============
Cost ....................................... $ 31,582,958 $ 22,956,239 $ 153,105,991 $ 19,067,956
================== ================== =================== ===============
Investments at net asset value ............... $ 36,273,914 $ 25,584,070 $ 168,283,318 $ 20,600,489
Accrued transfers from (to) depositor - net 25,924 95,257 373,269 58,385
------------------ ------------------ ------------------- ---------------
Total assets .............................. 36,299,838 25,679,327 168,656,587 20,658,874
------------------ ------------------ ------------------- ---------------
LIABILITIES: ................................. 4,177 2,928 19,338 2,341
------------------ ------------------ ------------------- ---------------
Total net assets ........................... $ 36,295,661 $ 25,676,399 $ 168,637,249 $ 20,656,533
================== ================== =================== ===============
EQUITY ACCOUNTS:
Contract Owners' equity:
Units ....................................... 2,813,347.569878 1,846,609.847916 11,708,623.870844 1,835,526.700042
================== ================== =================== ================
Unit value ................................. $ 12.901236 $ 13.904615 $ 14.402824 $ 11.253736
================== ================== =================== ===============
Contract Owners' equity ..................... $ 36,295,661 $ 25,676,399 $ 168,637,249 $ 20,656,533
------------------ ------------------ ------------------- ---------------
Depositor's equity:
Units ....................................... N/A N/A N/A N/A
================== ================== =================== ===============
Unit value ................................. $ N/A $ N/A $ N/A $ N/A
================== ================== =================== ===============
Depositor's equity ........................... N/A N/A N/A N/A
------------------ ------------------ ------------------- ---------------
Total equity .............................. $ 36,295,661 $ 25,676,399 $ 168,637,249 $ 20,656,533
================== ================== =================== ===============
</TABLE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
STATEMENT OF OPERATIONS
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH &
BALANCED INCOME
SUB-ACCOUNT SUB-ACCOUNT (A)
<S> <C> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 163,058 $ 56,837
Capital gain distributions .............................. 258,969 308,272
----------------- ------------------
422,027 365,109
EXPENSES:
Mortality and expense risk .............................. 223,804 154,499
----------------- ------------------
Net investment income (loss) ........................... 198,223 210,610
----------------- ------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions 182,904 310,013
Change in unrealized appreciation (depreciation) ...... 1,925,329 1,332,569
----------------- ------------------
Net gain (loss) on investments ........................ 2,108,233 1,642,582
----------------- ------------------
Net increase (decrease) in equity accounts
resulting from operations ........................... $ 2,306,456 $ 1,853,192
================= ==================
<CAPTION>
TACTICAL ASSET
ALLOCATION C.A.S.E. GROWTH
SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 384,413 $ 6,550
Capital gain distributions .............................. 1,048,273 107,276
------------------ -----------------
1,432,686 113,826
EXPENSES:
Mortality and expense risk .............................. 1,016,510 116,986
------------------ -----------------
Net investment income (loss) ........................... 416,176 (3,160)
------------------ -----------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions 562,415 106,484
Change in unrealized appreciation (depreciation) ...... 10,247,023 902,265
------------------ -----------------
Net gain (loss) on investments ........................ 10,809,438 1,008,749
------------------ -----------------
Net increase (decrease) in equity accounts
resulting from operations ........................... $ 11,225,614 $ 1,005,589
================== =================
</TABLE>
(a) Prior to May 1, 1997, this sub-account was known as Utility.
The notes to the financial statements are an integral part of this report.
18
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
STATEMENT OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
At June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL U.S.
GLOBAL SECTOR VALUE EQUITY EQUITY EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C> <C>
ASSETS:
Investments
Investment in WRL Series Fund, Inc.:
Shares .................................... 610,191.318 4,741,924.430 560,664.500 961,855.577
================ ================== ================ ===============
Cost ....................................... $ 6,375,217 $ 54,797,356 $ 5,933,765 $ 10,550,263
================ ================== ================ ===============
Investments at net asset value ............... $ 6,853,781 $ 61,231,943 $ 6,360,272 $ 11,060,560
Accrued transfers from (to) depositor - net 116,635 230,736 80,054 (79,951)
---------------- ------------------ ---------------- ---------------
Total assets .............................. 6,970,416 61,462,679 6,440,326 10,980,609
---------------- ------------------ ---------------- ---------------
LIABILITIES: ................................. 789 7,060 734 1,276
---------------- ------------------ ---------------- ---------------
Total net assets ........................... $ 6,969,627 $ 61,455,619 $ 6,439,592 $ 10,979,333
================ ================== ================ ===============
EQUITY ACCOUNTS:
Contract Owners' equity:
Units ....................................... 625,708.551934 4,812,909.221257 541,585.922443 946,399.632756
================ ================== ================ ===============
Unit value ................................. $ 11.138776 $ 12.768913 $ 11.266183 11.420155
================ ================== ================ ===============
Contract Owners' equity ..................... $ 6,969,627 $ 61,455,619 $ 6,101,606 $ 10,808,031
---------------- ------------------ ---------------- ---------------
Depositor's equity:
Units ....................................... N/A N/A 30,000.000000 15,000.000000
================ ================== ================ ===============
Unit value ................................. $ N/A $ N/A $ 11.266183 $ 11.420155
================ ================== ================ ===============
Depositor's equity ........................... N/A N/A 337,986 171,302
---------------- ------------------ ---------------- ---------------
Total equity ................................. $ 6,969,627 $ 61,455,619 $ 6,439,592 $ 10,979,333
================ ================== ================ ===============
</TABLE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
STATEMENT OF OPERATIONS
For the six months ended June 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL SECTOR
SUB-ACCOUNT
<S> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 18,675
Capital gain distributions .............................. 0
----------------
18,675
EXPENSES:
Mortality and expense risk .............................. 35,303
----------------
Net investment income (loss) ........................... (16,628)
----------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions 25,435
Change in unrealized appreciation (depreciation) ...... 356,727
----------------
Net gain (loss) on investments ........................ 382,162
----------------
Net increase (decrease) in equity accounts
resulting from operations ........................... $ 365,534
================
<CAPTION>
INTERNATIONAL U.S.
VALUE EQUITY EQUITY EQUITY
SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT (A)
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend Income ....................................... $ 26,943 $ 0 $ 0
Capital gain distributions .............................. 0 0 0
----------------- --------------- ---------------
26,943 0 0
EXPENSES:
Mortality and expense risk .............................. 272,108 16,651 21,931
----------------- --------------- ---------------
Net investment income (loss) ........................... (245,165) (16,651) (21,931)
----------------- --------------- ---------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) from securities transactions 581,060 3,342 (26,343)
Change in unrealized appreciation (depreciation) ...... 4,902,168 426,506 510,297
----------------- --------------- ---------------
Net gain (loss) on investments ........................ 5,483,228 429,848 483,954
----------------- --------------- ---------------
Net increase (decrease) in equity accounts
resulting from operations ........................... $ 5,238,063 $ 413,197 $ 462,023
================= =============== ===============
</TABLE>
(a) The inception date of this sub-account was January 2, 1997.
The notes to the financial statements are an integral part of this report.
19
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
SUB-ACCOUNT SUB-ACCOUNT
June 30 December 31 June 30 December 31
1997 1996 1997 1996
-------------- -------------- -------------- ----------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 1,181,337 $ 1,539,868 $ 163,991 $ 1,599,061
Net gain (loss) on investments .................. 0 0 307,003 (1,938,420)
------------- ------------- ------------- ------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 1,181,337 1,539,868 470,994 (339,359)
------------- ------------- ------------- ------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 11,777,296 37,166,378 3,869,018 8,367,613
------------- ------------- ------------- ------------
Less cost of units redeemed:
Administrative charges ........................ 15,094 17,556 15,445 24,284
Policy loans ................................. 200 101,493 0 11,521
Surrender benefits ........................... 5,147,380 8,016,874 1,727,874 2,411,912
Death benefits ................................. 175,347 679,267 207,100 296,824
------------- ------------- ------------- ------------
5,338,021 8,815,190 1,950,419 2,744,541
------------- ------------- ------------- ------------
Increase (decrease) in equity accounts
from capital unit transactions ............... 6,439,275 28,351,188 1,918,599 5,623,072
------------- ------------- ------------- ------------
Net increase (decrease) in equity accounts 7,620,612 29,891,056 2,389,593 5,283,713
Depositor's equity contribution (redemption) . 0 0 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 58,414,795 28,523,739 38,055,244 32,771,531
------------- ------------- ------------- ------------
End of period ................................. $ 66,035,407 $ 58,414,795 $ 40,444,837 $ 38,055,244
============= ============= ============= ============
<CAPTION>
GROWTH
SUB-ACCOUNT
June 30 December 31
1997 1996
--------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 709,004 $ 16,289,091
Net gain (loss) on investments .................. 35,220,138 20,917,002
-------------- --------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 35,929,142 37,206,093
-------------- --------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 43,784,416 98,111,181
-------------- --------------
Less cost of units redeemed:
Administrative charges ........................ 182,701 242,674
Policy loans ................................. 80,298 176,313
Surrender benefits ........................... 11,965,925 14,229,582
Death benefits ................................. 792,494 1,101,844
-------------- --------------
13,021,418 15,750,413
-------------- --------------
Increase (decrease) in equity accounts
from capital unit transactions ............... 30,762,998 82,360,768
-------------- --------------
Net increase (decrease) in equity accounts 66,692,140 119,566,861
Depositor's equity contribution (redemption) . 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 317,705,445 198,138,584
-------------- --------------
End of period ................................. $ 384,397,585 $ 317,705,445
============== ==============
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING GROWTH
SUB-ACCOUNT
June 30 December 31
1997 1996
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ (102,900) $ 5,805,740
Net gain (loss) on investments .................. 15,706,766 14,107,686
------------- --------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 15,603,866 19,913,426
------------- --------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 24,994,275 63,633,185
------------- --------------
Less cost of units redeemed:
Administrative charges ........................ 92,745 128,353
Policy loans ................................. 58,296 108,870
Surrender benefits ........................... 6,038,480 8,245,766
Death benefits ................................. 382,450 589,583
------------- --------------
6,571,971 9,072,572
------------- --------------
Increase (decrease) in equity accounts
from capital unit transactions ............... 18,422,304 54,560,613
------------- --------------
Net increase (decrease) in equity accounts 34,026,170 74,474,039
Depositor's equity contribution (redemption) . 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 179,588,849 105,114,810
------------- --------------
End of period ................................. $ 213,615,019 $ 179,588,849
============= ==============
<CAPTION>
AGGRESSIVE GROWTH BALANCED
SUB-ACCOUNT SUB-ACCOUNT
June 30 December 31 June 30 December 31
1997 1996 1997 1996
--------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 21,641 $ 1,823,074 $ 198,223 $ 585,218
Net gain (loss) on investments .................. 15,221,398 6,049,884 2,108,233 1,594,221
-------------- -------------- ------------- ------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 15,243,039 7,872,958 2,306,456 2,179,439
-------------- -------------- ------------- ------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 18,056,517 36,890,434 6,812,758 12,102,679
-------------- -------------- ------------- ------------
Less cost of units redeemed:
Administrative charges ........................ 65,403 69,909 11,658 14,257
Policy loans ................................. 30,765 101,914 200 21,825
Surrender benefits ........................... 3,910,470 4,071,470 1,194,214 1,283,676
Death benefits ................................. 116,343 107,157 351,313 79,316
-------------- -------------- ------------- ------------
4,122,981 4,350,450 1,557,385 1,399,074
-------------- -------------- ------------- ------------
Increase (decrease) in equity accounts
from capital unit transactions ............... 13,933,536 32,539,984 5,255,373 10,703,605
-------------- -------------- ------------- ------------
Net increase (decrease) in equity accounts 29,176,575 40,412,942 7,561,829 12,883,044
Depositor's equity contribution (redemption) . 0 0 0 (218,006)
EQUITY ACCOUNTS:
Beginning of period ........................... 100,832,485 60,419,543 28,733,832 16,068,794
-------------- -------------- ------------- ------------
End of period ................................. $ 130,009,060 $ 100,832,485 $ 36,295,661 $ 28,733,832
============== ============== ============= ============
</TABLE>
The notes to the financial statements are an integral part of this report.
20
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TO-INTERMEDIATE
GOVERNMENT GLOBAL
SUB-ACCOUNT SUB-ACCOUNT
June 30 December 31 June 30 December 31
1997 1996 1997 1996
-------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 81,018 $ 567,261 $ 2,763,000 $ 16,880,288
Net gain (loss) on investments .................. 201,029 (242,453) 39,834,100 21,125,251
------------- ------------ -------------- --------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 282,047 324,808 42,597,100 38,005,539
------------- ------------ -------------- --------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 1,111,019 4,001,808 69,072,194 88,386,336
------------- ------------ -------------- --------------
Less cost of units redeemed:
Administrative charges ........................ 4,024 7,051 122,954 146,170
Policy loans ................................. 16,244 0 54,562 147,825
Surrender benefits ........................... 790,734 1,514,008 8,351,349 9,450,746
Death benefits ................................. 71,548 110,873 619,020 650,521
------------- ------------ -------------- --------------
882,550 1,631,932 9,147,885 10,395,262
------------- ------------ -------------- --------------
Increase (decrease) in equity accounts
from capital unit transactions ............... 228,469 2,369,876 59,924,309 77,991,074
------------- ------------ -------------- --------------
Net increase (decrease) in equity accounts 510,516 2,694,684 102,521,409 115,996,613
Depositor's equity contribution (redemption) . 0 0 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 15,680,226 12,985,542 227,955,045 111,958,432
------------- ------------ -------------- --------------
End of period ................................. $ 16,190,742 $ 15,680,226 $ 330,476,454 $ 227,955,045
============= ============ ============== ==============
<CAPTION>
STRATEGIC
TOTAL RETURN
SUB-ACCOUNT (A)
June 30 December 31
1997 1996
--------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ (571,299) $ 8,639,889
Net gain (loss) on investments .................. 27,815,890 8,201,401
------------- --------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 27,244,591 16,841,290
------------- --------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 30,804,677 85,200,901
------------- --------------
Less cost of units redeemed:
Administrative charges ........................ 71,070 91,978
Policy loans ................................. 28,134 78,498
Surrender benefits ........................... 7,192,183 6,804,935
Death benefits ................................. 904,266 412,933
------------- --------------
8,195,653 7,388,344
------------- --------------
Increase (decrease) in equity accounts
from capital unit transactions ............... 22,609,024 77,812,557
------------- --------------
Net increase (decrease) in equity accounts 49,853,615 94,653,847
Depositor's equity contribution (redemption) . 0 0
EQUITY ACCOUNTS:
Beginning of period ........................... 196,304,955 101,651,108
------------- --------------
End of period ................................. $ 246,158,570 $ 196,304,955
============= ==============
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & INCOME
SUB-ACCOUNT (B)
June 30 December 31
1997 1996
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 210,610 $ 822,174
Net gain (loss) on investments .................. 1,642,582 815,944
------------- ------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 1,853,192 1,638,118
------------- ------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 5,086,817 9,551,314
------------- ------------
Less cost of units redeemed:
Administrative charges ........................ 8,706 9,288
Policy loans ................................. 0 11,838
Surrender benefits ........................... 804,489 811,139
Death benefits ................................. 422,313 240,558
------------- ------------
1,235,508 1,072,823
------------- ------------
Increase (decrease) in equity accounts
from capital unit transactions .................. 3,851,309 8,478,491
------------- ------------
Net increase (decrease) in equity accounts 5,704,501 10,116,609
Depositor's equity contribution (redemption) . 0 (230,353)
EQUITY ACCOUNTS:
Beginning of period ........................... 19,971,898 10,085,642
------------- ------------
End of period ................................. $ 25,676,399 $ 19,971,898
============= ============
<CAPTION>
TACTICAL ASSET ALLOCATION C.A.S.E. GROWTH
SUB-ACCOUNT SUB-ACCOUNT
June 30 December 31 June 30 December 31
1997 1996 1997 1996 (c)
--------------- --------------- -------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ 416,176 $ 3,678,264 $ (3,160) $ 200,234
Net gain (loss) on investments .................. 10,809,438 5,793,468 1,008,749 640,103
-------------- -------------- ------------ -------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 11,225,614 9,471,732 1,005,589 840,337
-------------- -------------- ------------ -------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 37,656,911 51,801,197 7,667,462 11,839,479
-------------- -------------- ------------ -------------
Less cost of units redeemed:
Administrative charges ........................ 34,379 32,299 2,693 923
Policy loans ................................. 1,912 23,207 1,167 10,904
Surrender benefits ........................... 5,136,426 7,426,292 361,570 150,700
Death benefits ................................. 649,667 513,632 168,554 0
-------------- -------------- ------------ -------------
5,822,384 7,995,430 533,984 162,527
-------------- -------------- ------------ -------------
Increase (decrease) in equity accounts
from capital unit transactions .................. 31,834,527 43,805,767 7,133,478 11,676,952
-------------- -------------- ------------ -------------
Net increase (decrease) in equity accounts 43,060,141 53,277,499 8,139,067 12,517,289
Depositor's equity contribution (redemption) . 0 0 (24,823) 25,000
EQUITY ACCOUNTS:
Beginning of period ........................... 125,577,108 72,299,609 12,542,289 0
-------------- -------------- ------------ -------------
End of period ................................. $ 168,637,249 $ 125,577,108 $ 20,656,533 $ 12,542,289
============== ============== ============ =============
</TABLE>
(a) Prior to May 1, 1997, this sub-account was known as Equity-Income.
(b) Prior to May 1, 1997, this sub-account was known as Utility.
(c) The inception date of this sub-account was May 1, 1996.
The notes to the financial statements are an integral part of this report.
21
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL SECTOR VALUE EQUITY
SUB-ACCOUNT SUB-ACCOUNT
June 30 December 31 June 30 December 31
1997 1996 (a) 1997 1996 (a)
-------------- ------------- --------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ (16,628) $ 5,383 $ (245,165) $ 19,266
Net gain (loss) on investments .................. 382,162 121,688 5,483,228 1,562,183
----------- ------------ ------------ -------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 365,534 127,071 5,238,063 1,581,449
----------- ------------ ------------ -------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 3,250,324 3,409,809 33,605,995 22,294,351
----------- ------------ ------------ -------------
Less cost of units redeemed:
Administrative charges ........................ 779 91 8,040 1,969
Policy loans ................................. 66 0 3,672 5,853
Surrender benefits ........................... 146,204 27,423 868,505 258,657
Death benefits ................................. 8,548 0 96,177 0
----------- ------------ ------------ -------------
155,597 27,514 976,394 266,479
----------- ------------ ------------ -------------
Increase (decrease) in equity accounts
from capital unit transactions ............... 3,094,727 3,382,295 32,629,601 22,027,872
----------- ------------ ------------ -------------
Net increase (decrease) in equity accounts 3,460,261 3,509,366 37,867,664 23,609,321
Depositor's equity contribution (redemption) . 0 0 (171,366) 150,000
EQUITY ACCOUNTS:
Beginning of period ........................... 3,509,366 0 23,759,321 0
----------- ------------ ------------ -------------
End of period ................................. $ 6,969,627 $ 3,509,366 $ 61,455,619 $ 23,759,321
=========== ============ ============ =============
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT
June 30 June 30
1997 (b) 1997 (b)
---------------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................. $ (16,651) $ (21,931)
Net gain (loss) on investments .................. 429,848 483,954
----------- ------------
Net increase (decrease) in equity accounts
resulting from operations ..................... 413,197 462,023
----------- ------------
EQUITY TRANSACTIONS:
Proceeds from units sold (redeemed) ............ 5,790,222 10,402,860
----------- ------------
Less cost of units redeemed:
Administrative charges ........................ 470 884
Policy loans ................................. 0 0
Surrender benefits ........................... 63,357 34,666
Death benefits ................................. 0 0
----------- ------------
63,827 35,550
----------- ------------
Increase (decrease) in equity accounts
from capital unit transactions ............... 5,726,395 10,367,310
----------- ------------
Net increase (decrease) in equity accounts 6,139,592 10,829,333
Depositor's equity contribution (redemption) . 300,000 150,000
EQUITY ACCOUNTS:
Beginning of period ........................... 0 0
----------- ------------
End of period ................................. $ 6,439,592 $ 10,979,333
=========== ============
</TABLE>
(a) The inception date of this sub-account was May 1, 1996.
(b) The inception date of this sub-account was January 2, 1997.
The notes to the financial statements are an integral part of this report.
22
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET SUB-ACCOUNT
December 31
June 30 --------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 (c)
------------ ------------ ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 11.12 $ 10.73 $ 10.32 $ 10.11 $ 10.01 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.20 0.39 0.41 0.21 0.10 0.01
Net realized and unrealized gain (loss)
on investments .............................. 0.00 0.00 0.00 0.00 0.00 0.00
-------- -------- ---------- ---------- ----------- -----------
Total income (loss) from operations ...... 0.20 0.39 0.41 0.21 0.10 0.01
-------- -------- ---------- ---------- ----------- -----------
Accumulation unit value, end of period ...... $ 11.32 $ 11.12 $ 10.73 $ 10.32 $ 10.11 $ 10.01
======== ======== ========== ========== =========== ===========
Total return (a) .............................. 1.85% 3.65% 3.96% 2.07% 1.01% 0.09%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 66,035 $ 58,415 $ 28,524 $ 28,537 $ 8,786 $ 100
Ratios of net investment income (loss)
to average net assets (b) .................. 3.67% 3.57% 3.89% 2.26% 1.03% 1.08%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOND SUB-ACCOUNT
December 31
June 30 --------------------------
1997 1996 1995
------------ ----------- --------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 12.46 $ 12.61 $ 10.40
Income from operations:
Net investment income (loss) ............... 0.05 0.56 0.64
Net realized and unrealized gain (loss)
on investments .............................. 0.09 (0.71) 1.57
-------- ---------- ----------
Total income (loss) from operations ...... 0.14 (0.15) 2.21
-------- ---------- ----------
Accumulation unit value, end of period ...... $ 12.60 $ 12.46 $ 12.61
======== ========== ==========
Total return (a) .............................. 1.19% (1.25%) 21.28%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 40,445 $ 38,055 $ 32,772
Ratios of net investment income (loss)
to average net assets (b) ..................... 0.85% 4.60% 5.45%
<CAPTION>
1994 1993 1992 (c)
-------------- -------------- --------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 11.33 $ 10.14 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.52 2.69 0.64
Net realized and unrealized gain (loss)
on investments .............................. (1.45) (1.50) (0.50)
-------------- ---------- ------------
Total income (loss) from operations ...... (0.93) 1.19 0.14
-------------- ---------- ------------
Accumulation unit value, end of period ...... $ 10.40 $ 11.33 $ 10.14
============== ========== ============
Total return (a) .............................. (8.23%) 11.81% 1.36%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 17,614 $ 17,280 $ 101
Ratios of net investment income (loss)
to average net assets (b) ..................... 4.91% 24.79% 6.30%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH SUB-ACCOUNT
December 31
June 30 ---------------------------
1997 1996 1995
------------- ------------- -------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 16.02 $ 13.77 $ 9.49
Income from operations:
Net investment income (loss) ............... 0.03 0.95 1.30
Net realized and unrealized gain (loss)
on investments .............................. 1.69 1.30 2.98
--------- --------- ----------
Total income (loss) from operations ...... 1.72 2.25 4.28
--------- --------- ----------
Accumulation unit value, end of period ...... $ 17.74 $ 16.02 $ 13.77
========= ========= ==========
Total return (a) .............................. 10.74% 16.32% 45.08%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 384,398 $ 317,705 $ 198,139
Ratios of net investment income (loss)
to average net assets (b) .................. 0.41% 6.21% 11.07%
<CAPTION>
1994 1993 1992 (c)
-------------- -------------- --------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 10.50 $ 10.24 $ 10.00
Income from operations:
Net investment income (loss) ............... (0.03) 0.31 0.39
Net realized and unrealized gain (loss)
on investments .............................. (0.98) (0.05) (0.15)
------------- ---------- ------------
Total income (loss) from operations ...... (1.01) 0.26 0.24
------------- ---------- ------------
Accumulation unit value, end of period ...... $ 9.49 $ 10.50 $ 10.24
============= ========== ============
Total return (a) .............................. (9.58%) 2.55% 2.38%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 112,383 $ 87,415 $ 102
Ratios of net investment income (loss)
to average net assets (b) .................. (0.26%) 3.14% 3.82%
</TABLE>
The notes to the financial statements are an integral part of this report.
23
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TO-INTERMEDIATE
GOVERNMENT SUB-ACCOUNT
December 31
June 30 ---------------------------
1997 1996 1995
------------ ------------ --------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 11.61 $ 11.38 $ 10.16
Income from operations:
Net investment income (loss) ............... 0.06 0.45 0.48
Net realized and unrealized gain (loss)
on investments .............................. 0.15 (0.22) 0.74
-------- -------- ------------
Total income (loss) from operations ...... 0.21 0.23 1.22
-------- -------- ------------
Accumulation unit value, end of period ...... $ 11.82 $ 11.61 $ 11.38
======== ======== ============
Total return (a) .............................. 1.80% 2.04% 11.96%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 16,191 $ 15,680 $ 12,986
Ratios of net investment income (loss)
to average net assets (b) .................. 1.04% 3.93% 4.39%
<CAPTION>
1994 1993 1992 (c)
-------------- --------------- -------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 10.35 $ 10.03 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.37 0.30 0.01
Net realized and unrealized gain (loss)
on investments .............................. (0.56) 0.02 0.02
-------------- ----------- -----------
Total income (loss) from operations ...... (0.19) 0.32 0.03
-------------- ----------- -----------
Accumulation unit value, end of period ...... $ 10.16 $ 10.35 $ 10.03
============== =========== ===========
Total return (a) .............................. (1.81%) 3.12% 0.35%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 11,649 $ 13,564 $ 853
Ratios of net investment income (loss)
to average net assets (b) .................. 3.68% 2.98% 1.56%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL SUB-ACCOUNT
December 31
June 30 ----------------------------
1997 1996 1995
------------- ------------- --------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 20.43 $ 16.22 $ 13.36
Income from operations:
Net investment income (loss) ............... 0.22 1.79 0.43
Net realized and unrealized gain (loss)
on investments .............................. 3.08 2.42 2.43
--------- --------- -----------
Total income (loss) from operations ...... 3.30 4.21 2.86
--------- --------- -----------
Accumulation unit value, end of period ...... $ 23.73 $ 20.43 $ 16.22
========= ========= ===========
Total return (a) .............................. 16.16% 25.96% 21.35%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 330,476 $ 227,955 $ 111,958
Ratios of net investment income (loss)
to average net assets (b) .................. 2.02% 9.45% 2.96%
<CAPTION>
1994 1993 1992 (c)
-------------- -------------- --------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 13.52 $ 10.15 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.53 0.11 (0.01)
Net realized and unrealized gain (loss)
on investments .............................. (0.69) 3.26 0.16
-------------- ------------ --------------
Total income (loss) from operations ...... (0.16) 3.37 0.15
-------------- ------------ --------------
Accumulation unit value, end of period ...... $ 13.36 $ 13.52 $ 10.15
============== ============ ==============
Total return (a) .............................. (1.14%) 33.17% 1.51%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 95,829 $ 29,905 $ 254
Ratios of net investment income (loss)
to average net assets (b) .................. 3.95% 0.99% (1.32%)
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC TOTAL RETURN
SUB-ACCOUNT (I)
December 31
June 30 ---------------------------------------------------------
1997 1996 1995 1994 1993 (d)
-------------- ------------ -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 15.37 $ 13.56 $ 11.03 $ 11.24 $ 10.00
Income from operations:
Net investment income (loss) ............... (0.04) 0.94 0.59 0.16 0.20
Net realized and unrealized gain (loss)
on investments .............................. 2.03 0.87 1.94 (0.37) 1.04
----------- --------- ----------- -------------- ------------
Total income (loss) from operations ...... 1.99 1.81 2.53 (0.21) 1.24
----------- --------- ----------- -------------- ------------
Accumulation unit value, end of period ...... $ 17.36 $ 15.37 $ 13.56 $ 11.03 $ 11.24
=========== ========= =========== ============== ============
Total return (a) .............................. 12.97% 13.40% 22.93% (1.92%) 12.43%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 246,159 $ 196,305 $ 101,651 $ 71,733 $ 28,312
Ratios of net investment income (loss)
to average net assets (b) .................. (0.53%) 6.55% 4.76% 1.49% 2.24%
</TABLE>
The notes to the financial statements are an integral part of this report.
24
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING GROWTH SUB-ACCOUNT
December 31
June 30 ---------------------------------------------------------
1997 1996 1995 1994 1993 (d)
-------------- ------------ -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 19.15 $ 16.34 $ 11.29 $ 12.35 $ 10.00
Income from operations:
Net investment income (loss) ............... (0.01) 0.73 0.54 (0.15) (0.14)
Net realized and unrealized gain (loss)
on investments .............................. 1.52 2.08 4.51 (0.91) 2.49
----------- --------- ----------- -------------- --------------
Total income (loss) from operations ...... 1.51 2.81 5.05 (1.06) 2.35
----------- --------- ----------- -------------- --------------
Accumulation unit value, end of period ...... $ 20.66 $ 19.15 $ 16.34 $ 11.29 $ 12.35
=========== ========= =========== ============== ==============
Total return (a) .............................. 7.87% 17.23% 44.75% (8.65%) 23.54%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 213,615 $ 179,589 $ 105,115 $ 62,615 $ 25,444
Ratios of net investment income (loss)
to average net assets (b) .................. (0.11%) 3.96% 3.85% (1.33%) (1.44%)
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH SUB-ACCOUNT
December 31
June 30 -------------------------------------------
1997 1996 1995 1994 (e)
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 14.50 $ 13.31 $ 9.78 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.01 0.31 0.40 (0.10)
Net realized and unrealized gain (loss)
on investments .............................. 2.03 0.88 3.13 (0.12)
--------- ---------- --------- -------------
Total income (loss) from operations ...... 2.04 1.19 3.53 (0.22)
--------- ---------- --------- -------------
Accumulation unit value, end of period ...... $ 16.54 $ 14.50 $ 13.31 $ 9.78
========= ========== ========= =============
Total return (a) .............................. 14.04% 8.91% 36.10% (2.18%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 130,009 $ 100,832 $ 60,420 $ 11,403
Ratios of net investment income (loss)
to average net assets (b) .................. 0.04% 2.22% 3.04% (1.19%)
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED SUB-ACCOUNT
December 31
June 30 -----------------------------------------
1997 1996 1995 1994 (e)
------------ ------------ ------------- --------------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 12.05 $ 11.03 $ 9.34 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.07 0.30 0.32 0.27
Net realized and unrealized gain (loss)
on investments .............................. 0.78 0.72 1.37 (0.93)
-------- -------- --------- -------------
Total income (loss) from operations ...... 0.85 1.02 1.69 (0.66)
-------- -------- --------- -------------
Accumulation unit value, end of period ...... $ 12.90 $ 12.05 $ 11.03 $ 9.34
======== ======== ========= =============
Total return (a) .............................. 7.11% 9.18% 18.13% (6.61%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 36,296 $ 28,734 $ 16,069 $ 7,936
Ratios of net investment income (loss)
to average net assets (b) .................. 1.23% 2.69% 3.16% 3.48%
</TABLE>
The notes to the financial statements are an integral part of this report.
25
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & INCOME SUB-ACCOUNT (J)
December 31
June 30 -----------------------------------------
1997 1996 1995 1994 (e)
------------ ------------ ------------- --------------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period $ 12.85 $ 11.68 $ 9.45 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.12 0.68 0.47 0.33
Net realized and unrealized gain (loss)
on investments .............................. 0.93 0.49 1.76 (0.88)
-------- -------- --------- -------------
Total income (loss) from operations ...... 1.05 1.17 2.23 (0.55)
-------- -------- --------- -------------
Accumulation unit value, end of period ...... $ 13.90 $ 12.85 $ 11.68 $ 9.45
======== ======== ========= =============
Total return (a) .............................. 8.18% 10.08% 23.52% (5.47%)
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 25,676 $ 19,972 $ 10,086 $ 3,786
Ratios of net investment income (loss)
to average net assets (b) .................. 1.89% 5.68% 4.50% 4.18%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TACTICAL ASSET ALLOCATION
SUB-ACCOUNT
December 31
June 30 ----------------------------
1997 1996 1995 (f)
------------- ------------- --------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period $ 13.36 $ 11.84 $ 10.00
Income from operations:
Net investment income (loss) ............... 0.04 0.47 0.82
Net realized and unrealized gain (loss)
on investments .............................. 1.00 1.05 1.02
--------- --------- ----------
Total income (loss) from operations ...... 1.04 1.52 1.84
--------- --------- ----------
Accumulation unit value, end of period ...... $ 14.40 $ 13.36 $ 11.84
========= ========= ==========
Total return (a) .............................. 7.78% 12.83% 18.43%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 168,637 $ 125,577 $ 72,300
Ratios of net investment income (loss)
to average net assets (b) .................. 0.57% 3.72% 7.29%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
C.A.S.E. GROWTH
SUB-ACCOUNT
June 30 December 31
1997 1996 (g)
------------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period $ 10.77 $ 10.00
Income from operations:
Net investment income (loss) ............... (0.01) 0.36
Net realized and unrealized gain (loss)
on investments .............................. 0.49 0.41
---------- --------
Total income (loss) from operations ...... 0.48 0.77
---------- --------
Accumulation unit value, end of period ...... $ 11.25 $ 10.77
========== ========
Total return (a) .............................. 4.46% 7.73%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 20,657 $ 12,542
Ratios of net investment income (loss)
to average net assets (b) .................. (0.04%) 5.46%
</TABLE>
The notes to the financial statements are an integral part of this report.
26
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL SECTOR
SUB-ACCOUNT
June 30 December 31
1997 1996 (g)
------------ ------------
<S> <C> <C>
Accumulation unit value, beginning of period $ 10.51 $ 10.00
Income from operations:
Net investment income (loss) ............... (0.03) 0.04
Net realized and unrealized gain (loss)
on investments .............................. 0.66 0.47
---------- -------
Total income (loss) from operations ...... 0.63 0.51
---------- -------
Accumulation unit value, end of period ...... $ 11.14 $ 10.51
========== =======
Total return (a) .............................. 5.99% 5.09%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 6,970 $ 3,509
Ratios of net investment income (loss)
to average net assets (b) .................. (0.65%) 0.59%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE EQUITY
SUB-ACCOUNT
June 30 December 31
1997 1996 (g)
------------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period $ 11.21 $ 10.00
Income from operations:
Net investment income (loss) ............... (0.07) 0.02
Net realized and unrealized gain (loss)
on investments .............................. 1.63 1.19
---------- --------
Total income (loss) from operations ...... 1.56 1.21
---------- --------
Accumulation unit value, end of period ...... $ 12.77 $ 11.21
========== ========
Total return (a) .............................. 13.87% 12.13%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 61,456 $ 23,759
Ratios of net investment income (loss)
to average net assets (b) .................. (1.24%) 0.33%
</TABLE>
The notes to the financial statements are an integral part of this report.
27
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
SELECTED PER UNIT DATA AND RATIOS*
For the year or period ended
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT
June 30 June 30
1997 (h) 1997 (h)
-------------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period ... $ 10.00 $ 10.00
Income from operations:
Net investment income (loss) ............... (0.07) (0.07)
Net realized and unrealized gain (loss)
on investments .............................. 1.34 1.49
---------- ----------
Total income (loss) from operations ......... 1.27 1.42
---------- ----------
Accumulation unit value, end of period ......... $ 11.27 $ 11.42
========== ==========
Total return (a) .............................. 12.66% 14.20%
Ratios and supplemental data:
Net assets at end of period (in thousands) ... $ 6,440 $ 10,979
Ratios of net investment income (loss)
to average net assets (b) ..................... (1.36%) (1.37%)
</TABLE>
NOTES TO SELECTED PER UNIT DATA AND RATIOS
* The above tables illustrate the change for a unit outstanding computed
using average units outstanding throughout each period.
(a) For periods less than one year, the total return is not annualized.
(b) For periods less than one year, the ratio of net investment income to
average net assets is annualized.
(c) The inception date of this sub-account was December 3, 1992.
(d) The inception date of this sub-account was March 1, 1993.
(e) The inception date of this sub-account was March 1, 1994.
(f) The inception date of this sub-account was January 3, 1995.
(g) The inception date of this sub-account was May 1, 1996.
(h) The inception date of this sub-account was January 2, 1997.
(i) Prior to May 1, 1997, this sub-account was known as Equity-Income.
(j) Prior to May 1, 1997, this sub-account was known as Utility.
The notes to the financial statements are an integral part of this report.
28
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED)
- --------------------------------------------------------------------------------
June 30, 1997
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 sixteen investment options
referred to as Sub-Accounts. Each Sub-Account invests in the corresponding
Portfolio (the "Portfolios") 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 Sub-Adviser are as
follows:
<TABLE>
<CAPTION>
PORTFOLIO SUB-ADVISER
- ------------------------ ----------------------------
<S> <C>
Money Market J.P. Morgan Investment
Management Inc.
Bond Janus Capital Corporation
("JCC")
Growth JCC
Short-to-Intermediate AEGON USA Investment
Government Management, Inc.
("AIMI")
Global JCC
Strategic Total Return Luther King Capital
Management
Corporation
Emerging Growth Van Kampen American
Capital Asset
Management, Inc.
Aggressive Growth Fred Alger Management, Inc.
Balanced AIMI
Growth & Income Federated Investment
Counseling
Tactical Asset Dean Investment Associates
Allocation
C.A.S.E. Growth C.A.S.E. Management, Inc.
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIO SUB-ADVISER
- --------------- ------------------------------
<S> <C>
Global Sector Meridian Investment
Management Corporation
Value Equity NWQ Investment Management
Company, Inc.
International Scottish Equitable Investment
Equity Management, Ltd. and
GE Investment Management
Incorporated
U.S. Equity GE Investment Management
Incorporated
</TABLE>
WRL and AIMI are indirect wholly-owned subsidiaries of AEGON USA, Inc.,
which, along with Scottish Equitable Investment Management, Ltd. are indirect
wholly-owned subsidiaries of AEGON nv, a Netherlands corporation.
On January 2, 1997, WRL made an initial contribution of $ 450,000 to the
Annuity Account. The amount of the contribution and the units received are as
follows:
<TABLE>
<CAPTION>
SUB-ACCOUNT CONTRIBUTION UNITS
- ---------------------- -------------- --------------
<S> <C> <C>
International Equity $ 300,000 30,000.000000
U.S. Equity $ 150,000 15,000.000000
</TABLE>
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.
29
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER AND CONQUEROR
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1 (CONTINUED)
A. VALUATION OF INVESTMENTS
The investments in each Portfolio's shares are stated at the closing net
asset value ("NAV") per share as determined by the Fund for each
Portfolio on June 30, 1997. Investment transactions are accounted for on
the trade date, using the Fund for each Portfolio 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.
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 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 JUNE 30, 1997, THE EQUITY ACCOUNTS INCLUDE net unrealized
appreciation (depreciation) on investments as follows:
<TABLE>
<CAPTION>
SUB-ACCOUNT
- ----------------------------------
<S> <C>
Money Market $ N/A
Bond (47,778)
Growth 77,661,665
Short-to-Intermediate Government 19,422
Global 64,805,088
Strategic Total Return 44,800,477
Emerging Growth 39,785,122
Aggressive Growth 17,355,547
Balanced 4,690,956
Growth & Income 2,627,831
Tactical Asset Allocation 15,177,327
C.A.S.E. Growth 1,532,533
Global Sector 478,565
Value Equity 6,434,587
International Equity 426,506
U.S. Equity 510,297
</TABLE>
30
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
31
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
32
<PAGE>
- --------------------------------------------------------------------------------
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 33770-2597
1-800-851-9777
---------------------------
Distributor:
INTERSECURITIES, INC.
201 Highland Avenue
Largo, FL 33770-2597
---------------------------
Insurer:
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
201 Highland Avenue
Largo, FL 33770-2597
---------------------------
Independent Accountants:
PRICE WATERHOUSE LLP
1055 Broadway
Kansas City, MO 64105
<PAGE>
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. THIS MATERIAL MUST BE
PRECEDED OR ACCOMPANIED BY A PROSPECTUS.
[GRAPHIC OMITTED]
--------------------------------------------------
Western Reserve Life Assurance Co. of Ohio
Distributor: InterSecurities, Inc.
201 Highland Avenue /bullet/ Largo, Florida 33770-2597
August 1997
ACC00002 (8/97)
