WRL Series Annuity Account
Semi Annual Report
June 30, 1998
Western Reserve Life Assurance
Co. of Ohio
August 1998
ACC00002 (8/98)
<PAGE>
TABLE OF CONTENTS
WRL SERIES ANNUITY ACCOUNT PAGE
FREEDOM AND ATTAINERR
Statement of ASsets and Liabilities......................... 1
Statemente of Operations.................................... 4
Statement of Changes in Net Assets.......................... 7
Selected Per Unit Data and Ratios........................... 10
Notes to Financial Statements............................... 16
BELLWETHER, CONQUEROR, AND CREATOR
Statement of Assets and Liabilities......................... 20
Statement of Operations..................................... 23
Statement of Changes in Net Assets.......................... 26
Selected Per Unit Data and Ratios........................... 29
Notes to Financial Statements............................... 35
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF ASSETS AND LIABILITIES
At June 30, 1998
All amounts (except unit value) in thousands
(unaudited)
--------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ----------- -----------
<S> <C> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 54,969 3,796 14,087
========= ========= ==========
Cost ............................................... $ 54,969 $ 41,861 $ 419,363
========= ========= ==========
Investment, at net asset value ...................... $ 54,969 $ 43,926 $ 699,070
Transfers receivable from depositor ................. 25 36 702
--------- --------- ----------
Total assets ....................................... 54,994 43,962 699,772
--------- --------- ----------
LIABILITIES:
Accrued expenses .................................... 2 2 24
Transfers payable to depositor ...................... 0 0 0
--------- --------- ----------
Total liabilities .................................. 2 2 24
--------- --------- ----------
Net assets ......................................... $ 54,992 $ 43,960 $ 699,748
========= ========= ==========
NET ASSETS:
Contract Owners' equity:
Units .............................................. 3,901.6 2,178.9 13,442.8
========= ========= ==========
Unit value ......................................... $ 14.09 $ 20.18 $ 52.05
========= ========= ==========
Contract Owners' equity ............................ $ 54,992 $ 43,960 $ 699,748
--------- --------- ----------
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
--------- --------- ----------
Net assets applicable to outstanding units ......... $ 54,992 $ 43,960 $ 699,748
========= ========= ==========
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC
GLOBAL TOTAL RETURN EMERGING GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ------------ ---------------
<S> <C> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 13,139 10,401 7,484
========= ========= =========
Cost ............................................... $ 216,922 $ 130,987 $ 120,211
========= ========= =========
Investment, at net asset value ...................... $ 320,674 $ 171,584 $ 186,354
Transfers receivable from depositor ................. 111 0 0
--------- --------- ---------
Total assets ....................................... 320,785 171,584 186,354
--------- --------- ---------
LIABILITIES:
Accrued expenses .................................... 11 6 6
Transfers payable to depositor ...................... 0 13 41
--------- --------- ---------
Total liabilities .................................. 11 19 47
--------- --------- ---------
Net assets ......................................... $ 320,774 $ 171,565 $ 186,307
========= ========= =========
NET ASSETS:
Contract Owners' equity:
Units .............................................. 10,390.6 8,706.2 6,626.1
========= ========= =========
Unit value ......................................... $ 30.87 $ 19.71 $ 28.12
========= ========= =========
Contract Owners' equity ............................ $ 320,774 $ 171,565 $ 186,307
--------- --------- ---------
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
--------- --------- ---------
Net assets applicable to outstanding units ......... $ 320,774 $ 171,565 $ 186,307
========= ========= =========
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 1
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF ASSETS AND LIABILITIES
At June 30, 1998
All amounts (except unit value) in thousands
(unaudited)
--------------------------------------------
<TABLE>
<CAPTION>
GROWTH &
AGGRESSIVE GROWTH BALANCED INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------- ----------- -----------
<S> <C> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 4,500 1,603 1,389
========= ========= =========
Cost ............................................... $ 67,048 $ 18,314 $ 16,947
========= ========= =========
Investment, at net asset value ...................... $ 90,176 $ 19,960 $ 17,280
Transfers receivable from depositor ................. 23 5 0
--------- --------- ---------
Total assets ....................................... 90,199 19,965 17,280
--------- --------- ---------
LIABILITIES:
Accrued expenses .................................... 3 1 1
Transfers payable to depositor ...................... 0 0 18
--------- --------- ---------
Total liabilities .................................. 3 1 19
--------- --------- ---------
Net assets ......................................... $ 90,196 $ 19,964 $ 17,261
========= ========= =========
NET ASSETS:
Contract Owners' equity:
Units .............................................. 3,988.5 1,378.6 1,079.8
========= ========= =========
Unit value ......................................... $ 22.61 $ 14.48 $ 15.99
========= ========= =========
Contract Owners' equity ............................ $ 90,196 $ 19,964 $ 17,261
--------- --------- ---------
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
--------- --------- ---------
Net assets applicable to outstanding units ......... $ 90,196 $ 19,964 $ 17,261
========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
TACTICAL ASSET
ALLOCATION C.A.S.E. GROWTH GLOBAL SECTOR
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- --------------- -------------
<S> <C> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 6,020 1,071 228
========= ========= =========
Cost ............................................... $ 74,989 $ 16,237 $ 2,443
========= ========= =========
Investment, at net asset value ...................... $ 85,702 $ 15,170 $ 2,593
Transfers receivable from depositor ................. 0 9 0
--------- --------- ---------
Total assets ....................................... 85,702 15,179 2,593
--------- --------- ---------
LIABILITIES:
Accrued expenses .................................... 3 1 0
Transfers payable to depositor ...................... 98 0 38
--------- --------- ---------
Total liabilities .................................. 101 1 38
--------- --------- ---------
Net assets ......................................... $ 85,601 $ 15,178 $ 2,555
========= ========= =========
NET ASSETS:
Contract Owners' equity:
Units .............................................. 5,209.4 927.2 166.7
========= ========= =========
Unit value ......................................... $ 16.43 $ 16.37 $ 11.79
========= ========= =========
Contract Owners' equity ............................ $ 85,601 $ 15,178 $ 1,966
--------- --------- ---------
Depositor's equity:
Units .............................................. N/A N/A 50.0
========= ========= =========
Unit value ......................................... $ N/A $ N/A $ 11.79
========= ========= =========
Depositor's equity ................................. $ N/A $ N/A $ 589
--------- --------- ---------
Net assets applicable to outstanding units ......... $ 85,601 $ 15,178 $ 2,555
========= ========= =========
</TABLE>
The notes to the financial statements are an integral part of this report.
2 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF ASSETS AND LIABILITIES
At June 30, 1998
All amounts (except unit value) in thousands
(unaudited)
--------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
VALUE EQUITY EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ------------- -----------
<S> <C> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 3,583 731 1,197
========= ======== =========
Cost ............................................... $ 45,077 $ 8,558 $ 15,466
========= ======== =========
Investment, at net asset value ...................... $ 52,747 $ 9,215 $ 16,579
Transfers receivable from depositor ................. 0 22 46
--------- -------- ---------
Total assets ....................................... 52,747 9,237 16,625
--------- -------- ---------
LIABILITIES:
Accrued expenses .................................... 2 0 1
Transfers payable to depositor ...................... 197 0 0
--------- -------- ---------
Total liabilities .................................. 199 0 1
--------- -------- ---------
Net assets ......................................... $ 52,548 $ 9,237 $ 16,624
========= ======== =========
NET ASSETS:
Contract Owners' equity:
Units .............................................. 3,592.6 713.2 1,151.2
========= ======== =========
Unit value ......................................... $ 14.63 $ 12.43 $ 14.25
========= ======== =========
Contract Owners' equity ............................ $ 52,548 $ 8,864 $ 16,410
--------- -------- ---------
Depositor's equity:
Units .............................................. N/A 30.0 15.0
========= ======== =========
Unit value ......................................... $ N/A $ 12.43 $ 14.25
========= ======== =========
Depositor's equity ................................. $ N/A $ 373 $ 214
--------- -------- ---------
Net assets applicable to outstanding units ......... $ 52,548 $ 9,237 $ 16,624
========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
THIRD AVENUE REAL ESTATE
VALUE SECURITIES
SUB-ACCOUNT (a) SUB-ACCOUNT (b)
--------------- ---------------
<S> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 484 38
========= =======
Cost ............................................... $ 4,942 $ 376
========= =======
Investment, at net asset value ...................... $ 4,645 $ 370
Transfers receivable from depositor ................. 0 0
--------- -------
Total assets ....................................... 4,645 370
--------- -------
LIABILITIES:
Accrued expenses .................................... 0 0
Transfers payable to depositor ...................... 3 0
--------- -------
Total liabilities .................................. 3 0
--------- -------
Net assets ......................................... $ 4,642 $ 370
========= =======
NET ASSETS:
Contract Owners' equity:
Units .............................................. 472.0 7.9
========= =======
Unit value ......................................... $ 9.53 $ 9.76
========= =======
Contract Owners' equity ............................ $ 4,499 $ 77
--------- -------
Depositor's equity:
Units .............................................. 15.0 30.0
========= =======
Unit value ......................................... $ 9.53 $ 9.76
========= =======
Depositor's equity ................................. $ 143 $ 293
--------- -------
Net assets applicable to outstanding units ......... $ 4,642 $ 370
========= =======
<FN>
- ------------
(a) The inception date of this Sub-Account was January 2, 1998.
(b) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 3
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF OPERATIONS
For the period ended June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $ 1,191 $ 59 $ 452
Capital gain distributions ............................................ 0 0 5,828
--------- ------- ---------
Total investment income .............................................. 1,191 59 6,280
EXPENSES:
Mortality and expense risk ............................................ 284 279 3,932
--------- ------- ---------
Net investment income (loss) ......................................... 907 (220) 2,348
--------- ------- ---------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. 0 226 30,496
Change in unrealized appreciation (depreciation) ...................... 0 1,433 158,301
--------- ------- ---------
Net gain (loss) on investment ........................................ 0 1,659 188,797
--------- ------- ---------
Net increase (decrease) in equity accounts resulting from operations $ 907 $ 1,439 $ 191,145
========= ======= =========
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC EMERGING
GLOBAL TOTAL RETURN GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ------------ -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $ 1,707 $ 444 $ 0
Capital gain distributions ............................................ 0 1,158 308
-------- ------- --------
Total investment income .............................................. 1,707 1,602 308
EXPENSES:
Mortality and expense risk ............................................ 1,819 1,058 1,075
-------- ------- --------
Net investment income (loss) ......................................... (112) 544 (767)
-------- ------- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. 7,429 2,549 7,350
Change in unrealized appreciation (depreciation) ...................... 64,335 6,742 27,220
-------- ------- --------
Net gain (loss) on investment ........................................ 71,764 9,291 34,570
-------- ------- --------
Net increase (decrease) in equity accounts resulting from operations $ 71,652 $ 9,835 $ 33,803
======== ======= ========
</TABLE>
The notes to the financial statements are an integral part of this report.
4 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF OPERATIONS
For the period ended June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH &
GROWTH BALANCED INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $238 $ 67 $ 309
Capital gain distributions ............................................ 1,339 20 62
-------- ----- ------
Total investment income .............................................. 1,577 87 371
EXPENSES:
Mortality and expense risk ............................................ 497 119 101
-------- ----- ------
Net investment income (loss) ......................................... 1,080 (32) 270
-------- ----- ------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. 1,121 594 185
Change in unrealized appreciation (depreciation) ...................... 16,780 140 (339)
-------- ----- ------
Net gain (loss) on investment ........................................ 17,901 734 (154)
-------- ----- ------
Net increase (decrease) in equity accounts resulting from operations $ 18,981 $ 702 $ 116
======== ===== ======
</TABLE>
<TABLE>
<CAPTION>
TACTICAL ASSET C.A.S.E. GLOBAL
ALLOCATION GROWTH SECTOR
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $188 $ 384 $ 10
Capital gain distributions ............................................ 1,797 95 0
-------- ----- -----
Total investment income .............................................. 1,985 479 10
EXPENSES:
Mortality and expense risk ............................................ 512 103 15
-------- ----- -----
Net investment income (loss) ......................................... 1,473 376 (5)
-------- ----- -----
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. 1,436 338 19
Change in unrealized appreciation (depreciation) ...................... 2,163 (30) 216
-------- ----- -----
Net gain (loss) on investment ........................................ 3,599 308 235
-------- ----- -----
Net increase (decrease) in equity accounts resulting from operations $ 5,072 $ 684 $ 230
======== ===== =====
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 5
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF OPERATIONS
For the period ended June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
VALUE EQUITY EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ------------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $ 27 $ 6 $ 123
Capital gain distributions ............................................ 117 0 21
------- ------- -------
Total investment income .............................................. 144 6 144
EXPENSES:
Mortality and expense risk ............................................ 327 44 98
------- ------- -------
Net investment income (loss) ......................................... (183) (38) 46
------- ------- -------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. 1,364 327 832
Change in unrealized appreciation (depreciation) ...................... 1,356 759 1,155
------- ------- -------
Net gain (loss) on investment ........................................ 2,720 1,086 1,987
------- ------- -------
Net increase (decrease) in equity accounts resulting from operations $ 2,537 $ 1,048 $ 2,033
======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
THIRD AVENUE REAL ESTATE
VALUE SECURITIES
SUB-ACCOUNT (a) SUB-ACCOUNT (b)
--------------- ---------------
<S> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $ 0 $ 0
Capital gain distributions ............................................ 0 0
-------- --------
Total investment income .............................................. 0 0
EXPENSES:
Mortality and expense risk ............................................ 26 1
-------- --------
Net investment income (loss) ......................................... (26) (1)
-------- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. (7) (4)
Change in unrealized appreciation (depreciation) ...................... (297) (6)
-------- --------
Net gain (loss) on investment ........................................ (304) (10)
-------- --------
Net increase (decrease) in equity accounts resulting from operations $ (330) $ (11)
======== ========
<FN>
- ---------
(a) The inception date of this Sub-Account was January 2, 1998.
(b) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
6 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
SUB-ACCOUNT SUB-ACCOUNT
----------------------- ------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
---------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ 907 $ 1,914 $ (220) $ 1,594
Net gain (loss) on investment .......................... 0 0 1,659 1,321
-------- --------- -------- --------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 907 1,914 1,439 2,915
-------- --------- -------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 30,567 11,544 859 7,028
-------- --------- -------- --------
Less cost of units redeemed:
Administrative charges ................................ 13 27 15 30
Policy loans .......................................... 7 16 0 22
Surrender benefits .................................... 15,245 24,076 4,102 8,533
Death benefits ........................................ 748 949 303 792
-------- --------- -------- --------
16,013 25,068 4,420 9,377
-------- --------- -------- --------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 14,554 (13,524) (3,561) (2,349)
-------- --------- -------- --------
Net increase (decrease) in equity accounts ............ 15,461 (11,610) (2,122) 566
Depositor's equity contribution (redemption) ........... 0 0 0 0
NET ASSETS:
Beginning of period .................................... 39,531 51,141 46,082 45,516
-------- --------- -------- --------
End of period .......................................... $ 54,992 $ 39,531 $ 43,960 $ 46,082
======== ========= ======== ========
<CAPTION>
GROWTH
SUB-ACCOUNT
--------------------------
JUNE 30, DECEMBER 31,
1998 1997
------------ -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ 2,348 $ 54,578
Net gain (loss) on investment .......................... 188,797 31,255
--------- ---------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 191,145 85,833
--------- ---------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... (2,789) 10,315
--------- ---------
Less cost of units redeemed:
Administrative charges ................................ 242 468
Policy loans .......................................... 15 126
Surrender benefits .................................... 57,463 97,322
Death benefits ........................................ 2,344 2,891
--------- ---------
60,064 100,807
--------- ---------
Increase (decrease) in equity accounts from capital
unit transactions .................................... (62,853) (90,492)
--------- ---------
Net increase (decrease) in equity accounts ............ 128,292 (4,659)
Depositor's equity contribution (redemption) ........... 0 0
NET ASSETS:
Beginning of period .................................... 571,456 576,115
--------- ---------
End of period .......................................... $ 699,748 $ 571,456
========= =========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL
SUB-ACCOUNT
--------------------------
JUNE 30, DECEMBER 31,
1998 1997
------------ -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ......................... $ (112) $ 28,400
Net gain (loss) on investment ........................ 71,764 11,320
--------- ---------
Net increase (decrease) in equity accounts resulting
from operations ..................................... 71,652 39,720
--------- ---------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................. 9,203 32,684
--------- ---------
Less cost of units redeemed:
Administrative charges .............................. 96 168
Policy loans ........................................ 30 47
Surrender benefits .................................. 20,625 31,301
Death benefits ...................................... 647 756
--------- ---------
21,398 32,272
--------- ---------
Increase (decrease) in equity accounts from capital
unit transactions .................................. (12,195) 412
--------- ---------
Net increase (decrease) in equity accounts .......... 59,457 40,132
Depositor's equity contribution (redemption) ......... 0 0
NET ASSETS:
Beginning of period .................................. 261,317 221,185
--------- ---------
End of period ........................................ $ 320,774 $ 261,317
========= =========
<CAPTION>
STRATEGIC
TOTAL RETURN EMERGING GROWTH
SUB-ACCOUNT SUB-ACCOUNT
--------------------------- --------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ......................... $ 544 $ 11,943 $ (767) $ 13,375
Net gain (loss) on investment ........................ 9,291 16,025 34,570 13,986
--------- --------- --------- ---------
Net increase (decrease) in equity accounts resulting
from operations ..................................... 9,835 27,968 33,803 27,361
--------- --------- --------- ---------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................. 7,933 16,145 (2,486) 11,051
--------- --------- --------- ---------
Less cost of units redeemed:
Administrative charges .............................. 48 90 59 107
Policy loans ........................................ 29 13 14 34
Surrender benefits .................................. 9,756 15,892 10,405 15,348
Death benefits ...................................... 629 648 380 357
--------- --------- --------- ---------
10,462 16,643 10,858 15,846
--------- --------- --------- ---------
Increase (decrease) in equity accounts from capital
unit transactions .................................. (2,529) (498) (13,344) (4,795)
--------- --------- --------- ---------
Net increase (decrease) in equity accounts .......... 7,306 27,470 20,459 22,566
Depositor's equity contribution (redemption) ......... 0 0 0 0
NET ASSETS:
Beginning of period .................................. 164,259 136,789 165,848 143,282
--------- --------- --------- ---------
End of period ........................................ $ 171,565 $ 164,259 $ 186,307 $ 165,848
========= ========= ========= =========
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 7
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH BALANCED
SUB-ACCOUNT SUB-ACCOUNT
-------------------------- --------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .......................... $ 1,080 $ 5,959 $ (32) $ 1,565
Net gain (loss) on investment ......................... 17,901 7,538 734 661
-------- -------- -------- --------
Net increase (decrease) in equity accounts resulting
from operations ...................................... 18,981 13,497 702 2,226
-------- -------- -------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) ................... 1,610 5,867 3,121 3,185
-------- -------- -------- --------
Less cost of units redeemed:
Administrative charges ............................... 30 54 6 11
Policy loans ......................................... 0 8 3 5
Surrender benefits ................................... 4,829 7,976 1,147 1,589
Death benefits ....................................... 80 625 27 80
-------- -------- -------- --------
4,939 8,663 1,183 1,685
-------- -------- -------- --------
Increase (decrease) in equity accounts from capital
unit transactions ................................... (3,329) (2,796) 1,938 1,500
-------- -------- -------- --------
Net increase (decrease) in equity accounts ........... 15,652 10,701 2,640 3,726
Depositor's equity contribution (redemption) .......... 0 0 0 0
NET ASSETS:
Beginning of period ................................... 74,544 63,843 17,324 13,598
-------- -------- -------- --------
End of period ......................................... $ 90,196 $ 74,544 $ 19,964 $ 17,324
======== ======== ======== ========
<CAPTION>
GROWTH & INCOME
SUB-ACCOUNT
--------------------------
JUNE 30, DECEMBER 31,
1998 1997
------------ -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .......................... $ 270 $ 1,845
Net gain (loss) on investment ......................... (154) 719
-------- --------
Net increase (decrease) in equity accounts resulting
from operations ...................................... 116 2,564
-------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) ................... 4,241 795
-------- --------
Less cost of units redeemed:
Administrative charges ............................... 5 8
Policy loans ......................................... 2 0
Surrender benefits ................................... 1,079 1,665
Death benefits ....................................... 66 27
-------- --------
1,152 1,700
-------- --------
Increase (decrease) in equity accounts from capital
unit transactions ................................... 3,089 (905)
-------- --------
Net increase (decrease) in equity accounts ........... 3,205 1,659
Depositor's equity contribution (redemption) .......... 0 0
NET ASSETS:
Beginning of period ................................... 14,056 12,397
-------- --------
End of period ......................................... $ 17,261 $ 14,056
======== ========
</TABLE>
<TABLE>
<CAPTION>
TACTICAL ASSET ALLOCATION C.A.S.E. GROWTH
SUB-ACCOUNT SUB-ACCOUNT
------------------------ --------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
---------- ------------- ------------ -------------0
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .......................... $ 1,473 $ 4,916 $ 376 $ 1,412
Net gain (loss) on investment ......................... 3,599 4,915 308 (713)
-------- -------- -------- --------
Net increase (decrease) in equity accounts resulting
from operations. ..................................... 5,072 9,831 684 699
-------- -------- -------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) ................... 8,410 12,079 (2,510) 14,277
-------- -------- -------- --------
Less cost of units redeemed:
Administrative charges ............................... 21 37 5 3
Policy loans ......................................... 0 2 0 5
Surrender benefits ................................... 5,681 5,667 620 887
Death benefits ....................................... 102 476 48 16
-------- -------- -------- --------
5,804 6,182 673 911
-------- -------- -------- --------
Increase (decrease) in equity accounts from capital
unit transactions ................................... 2,606 5,897 (3,183) 13,366
-------- -------- -------- --------
Net increase (decrease) in equity accounts ........... 7,678 15,728 (2,499) 14,065
Depositor's equity contribution (redemption) .......... 0 0 0 0
NET ASSETS:
Beginning of period ................................... 77,923 62,195 17,677 3,612
-------- -------- -------- --------
End of period ......................................... $ 85,601 $ 77,923 $ 15,178 $ 17,677
======== ======== ======== ========
<CAPTION>
GLOBAL SECTOR
SUB-ACCOUNT
------------------------
JUNE 30, DECEMBER 31,
1998 1997
---------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .......................... $ (5) $ 89
Net gain (loss) on investment ......................... 235 (25)
------- -------
Net increase (decrease) in equity accounts resulting
from operations. ..................................... 230 64
------- -------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) ................... 81 161
------- -------
Less cost of units redeemed:
Administrative charges ............................... 1 1
Policy loans ......................................... 0 0
Surrender benefits ................................... 116 275
Death benefits ....................................... 0 5
------- -------
117 281
------- -------
Increase (decrease) in equity accounts from capital
unit transactions ................................... (36) (120)
------- -------
Net increase (decrease) in equity accounts ........... 194 (56)
Depositor's equity contribution (redemption) .......... 0 0
NET ASSETS:
Beginning of period ................................... 2,361 2,417
------- -------
End of period ......................................... $ 2,555 $ 2,361
======= =======
</TABLE>
The notes to the financial statements are an integral part of this report.
8 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
VALUE EQUITY INTERNATIONAL EQUITY
SUB-ACCOUNT SUB-ACCOUNT
-------------------------- ------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 (a)
------------ ------------- ---------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .......................... $ (183) $ 192 $ (38) $ (20)
Net gain (loss) on investment ......................... 2,720 6,370 1,086 (54)
-------- -------- ------- -------
Net increase (decrease) in equity accounts resulting
from operations ...................................... 2,537 6,562 1,048 (74)
-------- -------- ------- -------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) ................... 3,303 29,438 2,055 6,413
-------- -------- ------- -------
Less cost of units redeemed:
Administrative charges ............................... 12 15 2 1
Policy loans ......................................... 6 4 0 0
Surrender benefits ................................... 2,440 3,045 193 256
Death benefits ....................................... 210 67 48 5
-------- -------- ------- -------
2,668 3,131 243 262
-------- -------- ------- -------
Increase (decrease) in equity accounts from capital
unit transactions ................................... 635 26,307 1,812 6,151
-------- -------- ------- -------
Net increase (decrease) in equity accounts. .......... 3,172 32,869 2,860 6,077
Depositor's equity contribution (redemption) .......... 0 (172) 0 300
NET ASSETS:
Beginning of period ................................... 49,376 16,679 6,377 0
-------- -------- ------- -------
End of period ......................................... $ 52,548 $ 49,376 $ 9,237 $ 6,377
======== ======== ======= =======
<CAPTION>
U.S. EQUITY
SUB-ACCOUNT
------------------------
JUNE 30, DECEMBER 31,
1998 1997 (a)
---------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .......................... $ 46 $ 384
Net gain (loss) on investment ......................... 1,987 598
-------- --------
Net increase (decrease) in equity accounts resulting
from operations ...................................... 2,033 982
-------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) ................... 2,865 11,930
-------- --------
Less cost of units redeemed:
Administrative charges ............................... 3 3
Policy loans ......................................... 0 0
Surrender benefits ................................... 553 682
Death benefits ....................................... 95 0
-------- --------
651 685
-------- --------
Increase (decrease) in equity accounts from capital
unit transactions ................................... 2,214 11,245
-------- --------
Net increase (decrease) in equity accounts. .......... 4,247 12,227
Depositor's equity contribution (redemption) .......... 0 150
NET ASSETS:
Beginning of period ................................... 12,377 0
-------- --------
End of period ......................................... $ 16,624 $ 12,377
======== ========
</TABLE>
<TABLE>
<CAPTION>
THIRD AVENUE REAL ESTATE
VALUE SECURITIES
SUB-ACCOUNT SUB-ACCOUNT
-------------- ------------
JUNE 30, JUNE 30,
1998 (b) 1998 (c)
-------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .......................... $ (26) $ (1)
Net gain (loss) on investment ......................... (304) (10)
------- -----
Net increase (decrease) in equity accounts resulting
from operations ...................................... (330) (11)
------- -----
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) ................... 4,927 81
------- -----
Less cost of units redeemed:
Administrative charges ............................... 1 0
Policy loans ......................................... 0 0
Surrender benefits ................................... 104 0
Death benefits ....................................... 0 0
------- -----
105 0
------- -----
Increase (decrease) in equity accounts from capital
unit transactions ................................... 4,822 81
------- -----
Net increase (decrease) in equity accounts ........... 4,492 70
Depositor's equity contribution (redemption) .......... 150 300
NET ASSETS:
Beginning of period ................................... 0 0
------- -----
End of period ......................................... $ 4,642 $ 370
======= =====
<FN>
- --------------
(a) The inception date of this Sub-Account was January 2, 1997.
(b) The inception date of this Sub-Account was January 2, 1998.
(c) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 9
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET SUB-ACCOUNT
-------------------------
JUNE 30, DECEMBER 31,
------------ ------------
1998 1997
------------ ------------
<S> <C> <C>
Accumulation unit value, beginning of period ........................ $ 13.82 $ 13.29
Income from operations:
Net investment income (loss) ...................................... 0.27 0.53
Net realized and unrealized gain (loss) on investment ............. 0.00 0.00
-------- --------
Net income (loss) from operations ................................ 0.27 0.53
-------- --------
Accumulation unit value, end of period .............................. $ 14.09 $ 13.82
======== ========
Total return (a) .................................................... 2.00% 4.00%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 54,992 $ 39,531
Ratio of net investment income (loss) to average net assets (b) .... 3.94% 3.92%
<CAPTION>
MONEY MARKET SUB-ACCOUNT
--------------------------------------------------
DECEMBER 31,
--------------------------------------------------
1996 1995 1994 1993
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ........................ $ 12.80 $ 12.29 $ 12.03 $ 11.89
Income from operations:
Net investment income (loss) ...................................... 0.49 0.51 0.26 0.14
Net realized and unrealized gain (loss) on investment ............. 0.00 0.00 0.00 0.00
-------- -------- -------- --------
Net income (loss) from operations ................................ 0.49 0.51 0.26 0.14
-------- -------- -------- --------
Accumulation unit value, end of period .............................. $ 13.29 $ 12.80 $ 12.29 $ 12.03
======== ======== ======== ========
Total return (a) .................................................... 3.81% 4.12% 2.22% 1.16%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 51,141 $ 41,596 $ 55,318 $ 32,943
Ratio of net investment income (loss) to average net assets (b) .... 3.72% 4.03% 2.28% 1.15%
</TABLE>
<TABLE>
<CAPTION>
BOND SUB-ACCOUNT
-------------------------
JUNE 30, DECEMBER 31,
------------ ------------
1998 1997
------------ ------------
<S> <C> <C>
Accumulation unit value, beginning of period ........................ $ 19.52 $ 18.11
Income from operations:
Net investment income (loss) ...................................... (0.10) 0.73
Net realized and unrealized gain (loss) on investment ............. 0.76 0.68
------- --------
Net income (loss) from operations ................................ 0.66 1.41
------- --------
Accumulation unit value, end of period .............................. $ 20.18 $ 19.52
======= ========
Total return (a) .................................................... 3.34% 7.80%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $43,960 $ 46,082
Ratio of net investment income (loss) to average net assets (b) .... (0.98%) 3.95%
<CAPTION>
BOND SUB-ACCOUNT
-------------------------------------------------
DECEMBER 31,
-------------------------------------------------
1996 1995 1994 1993
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ........................ $ 18.31 $ 15.08 $ 16.40 $ 14.65
Income from operations:
Net investment income (loss) ...................................... 0.77 0.83 0.72 1.67
Net realized and unrealized gain (loss) on investment ............. (0.97) 2.40 (2.04) 0.08
------- ------- ------- -------
Net income (loss) from operations ................................ (0.20) 3.23 (1.32) 1.75
------- ------- ------- -------
Accumulation unit value, end of period .............................. $ 18.11 $ 18.31 $ 15.08 $ 16.40
======= ======= ======= =======
Total return (a) .................................................... (1.10%) 21.46% (8.10%) 11.97%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $45,516 $54,109 $47,193 $66,483
Ratio of net investment income (loss) to average net assets (b) .... 4.34% 4.94% 4.69% 10.94%
</TABLE>
<TABLE>
<CAPTION>
GROWTH SUB-ACCOUNT
-----------------------------------------
JUNE 30, DECEMBER 31,
------------- ---------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ......................... $ 38.50 $ 33.17 $ 28.47
Income from operations:
Net investment income (loss) ....................................... 0.17 3.42 1.64
Net realized and unrealized gain (loss) on investment .............. 13.38 1.91 3.06
--------- --------- ---------
Net income (loss) from operations ................................. 13.55 5.33 4.70
--------- --------- ---------
Accumulation unit value, end of period ............................... $ 52.05 $ 38.50 $ 33.17
========= ========= =========
Total return (a) ..................................................... 35.19% 16.09% 16.50%
Ratio and supplemental data:
Net assets at end of period (in thousands) .......................... $ 699,748 $ 571,456 $ 576,115
Ratio of net investment income (loss) to average net assets (b) ..... 0.74% 9.36% 5.22%
<CAPTION>
GROWTH SUB-ACCOUNT
------------------------------------------
DECEMBER 31,
------------------------------------------
1995 1994 1993
------------- -------------- -------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ......................... $ 19.60 $ 21.64 $ 21.07
Income from operations:
Net investment income (loss) ....................................... 2.35 (0.06) 0.20
Net realized and unrealized gain (loss) on investment .............. 6.52 (1.98) 0.37
--------- -------- ---------
Net income (loss) from operations ................................. 8.87 (2.04) 0.57
--------- -------- ---------
Accumulation unit value, end of period ............................... $ 28.47 $ 19.60 $ 21.64
========= ======== =========
Total return (a) ..................................................... 45.29% (9.45%) 2.69%
Ratio and supplemental data:
Net assets at end of period (in thousands) .......................... $ 532,646 $ 409,881 $ 575,024
Ratio of net investment income (loss) to average net assets (b) ..... 9.81% (0.28%) 0.99%
</TABLE>
The notes to the financial statements are an integral part of this report.
10 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
GLOBAL SUB-ACCOUNT
--------------------------
JUNE 30, DECEMBER 31,
------------- ------------
1998 1997
------------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 24.10 $ 20.55
Income from operations:
Net investment income (loss) ....................................... (0.01) 2.55
Net realized and unrealized gain (loss) on investment .............. 6.78 1.00
-------- ---------
Net income (loss) from operations ................................. 6.77 3.55
-------- ---------
Accumulation unit value, end of period ............................... $ 30.87 $ 24.10
======== =========
Total return (a) ..................................................... 28.11% 17.28%
Ratio and supplemental data:
Net assets at end of period (in thousands) .......................... $ 320,774 $ 261,317
Ratio of net investment income (loss) to average net assets (b) ..... (0.08%) 11.01%
<CAPTION>
GLOBAL SUB-ACCOUNT
------------------------------------------------------
DECEMBER 31,
------------------------------------------------------
1996 1995 1994 1993
------------- ------------- -------------- -----------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ......................... $ 16.29 $ 13.40 $ 13.54 $ 10.15
Income from operations:
Net investment income (loss) ....................................... 1.62 0.42 0.45 0.16
Net realized and unrealized gain (loss) on investment .............. 2.64 2.47 (0.59) 3.23
--------- --------- -------- -------
Net income (loss) from operations ................................. 4.26 2.89 (0.14) 3.39
--------- --------- -------- -------
Accumulation unit value, end of period ............................... $ 20.55 $ 16.29 $ 13.40 $ 13.54
========= ========= ======== =======
Total return (a) ..................................................... 26.15% 21.53% (0.99%) 33.34%
Ratio and supplemental data:
Net assets at end of period (in thousands) .......................... $ 221,185 $ 141,425 $ 144,705 $69,665
Ratio of net investment income (loss) to average net assets (b) ..... 8.60% 2.89% 3.40% 1.40%
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC TOTAL RETURN
SUB-ACCOUNT
--------------------------
JUNE 30, DECEMBER 31,
------------- ------------
1998 1997
------------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period ........................ $ 18.60 $ 15.46
Income from operations:
Net investment income (loss) ...................................... 0.06 1.34
Net realized and unrealized gain (loss) on investment ............. 1.05 1.80
--------- ---------
Net income (loss) from operations ................................ 1.11 3.14
--------- ---------
Accumulation unit value, end of period .............................. $ 19.71 $ 18.60
========= =========
Total return (a) .................................................... 5.94% 20.34%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 171,565 $ 164,259
Ratio of net investment income (loss) to average net assets (b) .... 0.64% 7.83%
<CAPTION>
STRATEGIC TOTAL RETURN SUB-ACCOUNT
----------------------------------------------------
DECEMBER 31,
----------------------------------------------------
1996 1995 1994 1993 (c)
------------- ------------- ------------ -----------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ........................ $ 13.61 $ 11.06 $ 11.25 $ 10.00
Income from operations:
Net investment income (loss) ...................................... 0.68 0.59 0.16 0.16
Net realized and unrealized gain (loss) on investment ............. 1.17 1.96 (0.35) 1.09
--------- --------- ------- -------
Net income (loss) from operations ................................ 1.85 2.55 (0.19) 1.25
--------- --------- ------- -------
Accumulation unit value, end of period .............................. $ 15.46 $ 13.61 $ 11.06 $ 11.25
========= ========= ======= =======
Total return (a) .................................................... 13.57% 23.11% (1.77%) 12.54%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 136,789 $ 116,374 $88,607 $49,240
Ratio of net investment income (loss) to average net assets (b) .... 4.75% 4.74% 1.43% 1.84%
</TABLE>
<TABLE>
<CAPTION>
EMERGING GROWTH SUB-ACCOUNT
---------------------------
JUNE 30, DECEMBER 31,
------------- -------------
1998 1997
------------- -------------
<S> <C> <C>
Accumulation unit value, beginning of period ........................ $ 23.10 $ 19.26
Income from operations:
Net investment income (loss) ...................................... (0.11) 1.85
Net realized and unrealized gain (loss) on investment ............. 5.13 1.99
--------- ---------
Net income (loss) from operations. ............................... 5.02 3.84
--------- ---------
Accumulation unit value, end of period .............................. $ 28.12 $ 23.10
========= =========
Total return (a) .................................................... 21.72% 19.95%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 186,307 $ 165,848
Ratio of net investment income (loss) to average net assets (b) .... (0.88%) 8.73%
<CAPTION>
EMERGING GROWTH SUB-ACCOUNT
----------------------------------------------------
DECEMBER 31,
----------------------------------------------------
1996 1995 1994 1993 (c)
------------- ------------- ------------ -----------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ........................ $ 16.40 $ 11.31 $ 12.37 $ 10.00
Income from operations:
Net investment income (loss) ...................................... 0.63 0.51 (0.13) (0.12)
Net realized and unrealized gain (loss) on investment ............. 2.23 4.58 (0.93) 2.49
--------- --------- ------- -------
Net income (loss) from operations. ............................... 2.86 5.09 (1.06) 2.37
--------- --------- ------- -------
Accumulation unit value, end of period .............................. $ 19.26 $ 16.40 $ 11.31 $ 12.37
========= ========= ======= =======
Total return (a) .................................................... 17.41% 44.97% (8.51%) 23.67%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 143,282 $ 115,797 $83,480 $58,794
Ratio of net investment income (loss) to average net assets (b) .... 3.42% 3.68% (1.21%) (1.30%)
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 11
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
SUB-ACCOUNT
-------------------------
JUNE 30, DECEMBER 31,
------------ ------------
1998 1997
------------ ------------
<S> <C> <C>
Accumulation unit value, beginning of period ........................ $ 17.86 $ 14.56
Income from operations:
Net investment income (loss) ...................................... 0.27 1.42
Net realized and unrealized gain (loss) on investment ............. 4.48 1.88
-------- -------
Net income (loss) from operations ................................ 4.75 3.30
-------- -------
Accumulation unit value, end of period .............................. $ 22.61 $ 17.86
======== =======
Total return (a) .................................................... 26.59% 22.71%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 90,196 $74,544
Ratio of net investment income (loss) to average net assets (b) .... 2.69% 8.51%
<CAPTION>
AGGRESSIVE GROWTH SUB-ACCOUNT
-----------------------------------
DECEMBER 31,
-----------------------------------
1996 1995 1994 (d)
------------ ----------- ----------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ........................ $ 13.35 $ 9.79 $ 10.00
Income from operations:
Net investment income (loss) ...................................... 0.25 0.29 (0.08)
Net realized and unrealized gain (loss) on investment ............. 0.96 3.27 (0.13)
-------- ------- -------
Net income (loss) from operations ................................ 1.21 3.56 (0.21)
-------- ------- -------
Accumulation unit value, end of period .............................. $ 14.56 $ 13.35 $ 9.79
======== ======= =======
Total return (a) .................................................... 9.07% 36.31% (2.08%)
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 63,843 $65,666 $18,555
Ratio of net investment income (loss) to average net assets (b) .... 1.77% 2.28% (1.04%)
</TABLE>
<TABLE>
<CAPTION>
BALANCED SUB-ACCOUNT
-------------------------
JUNE 30, DECEMBER 31,
------------ ------------
1998 1997
------------ ------------
<S> <C> <C>
Accumulation unit value, beginning of period ........................ $ 13.99 $ 12.09
Income from operations:
Net investment income (loss) ...................................... (0.02) 1.32
Net realized and unrealized gain (loss) on investment ............. 0.51 0.58
------- -------
Net income (loss) from operations ................................ 0.49 1.90
------- -------
Accumulation unit value, end of period .............................. $ 14.48 $ 13.99
======= =======
Total return (a) .................................................... 3.54% 15.65%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $19,964 $17,324
Ratio of net investment income (loss) to average net assets (b) .... (0.33%) 10.01%
<CAPTION>
BALANCED SUB-ACCOUNT
-----------------------------------
DECEMBER 31,
-----------------------------------
1996 1995 1994 (d)
------------ ----------- ----------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ........................ $ 11.06 $ 9.35 $ 10.00
Income from operations:
Net investment income (loss) ...................................... 0.26 0.29 0.21
Net realized and unrealized gain (loss) on investment ............. 0.77 1.42 (0.86)
-------- ------- --------
Net income (loss) from operations ................................ 1.03 1.71 (0.65)
-------- ------- --------
Accumulation unit value, end of period .............................. $ 12.09 $ 11.06 $ 9.35
======== ======= ========
Total return (a) .................................................... 9.34% 18.31% (6.52%)
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 13,598 $11,343 $ 9,379
Ratio of net investment income (loss) to average net assets (b) .... 2.29% 2.85% 2.63%
</TABLE>
<TABLE>
<CAPTION>
GROWTH & INCOME
SUB-ACCOUNT
-------------------------
JUNE 30, DECEMBER 31,
------------ ------------
1998 1997
------------ ------------
<S> <C> <C>
Accumulation unit value, beginning of period ........................ $ 15.89 $ 12.91
Income from operations:
Net investment income (loss) ...................................... 0.26 2.06
Net realized and unrealized gain (loss) on investment ............. (0.16) 0.92
-------- -------
Net income (loss) from operations ................................ 0.10 2.98
-------- -------
Accumulation unit value, end of period .............................. $ 15.99 $ 15.89
======== =======
Total return (a) .................................................... 0.62% 23.10%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 17,261 $14,056
Ratio of net investment income (loss) to average net assets (b) .... 3.31% 14.87%
<CAPTION>
GROWTH & INCOME SUB-ACCOUNT
----------------------------------
DECEMBER 31,
----------------------------------
1996 1995 1994 (d)
----------- ----------- ----------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ........................ $ 11.71 $ 9.46 $ 10.00
Income from operations:
Net investment income (loss) ...................................... 0.50 0.45 0.32
Net realized and unrealized gain (loss) on investment ............. 0.70 1.80 (0.86)
------- ------- --------
Net income (loss) from operations ................................ 1.20 2.25 (0.54)
------- ------- --------
Accumulation unit value, end of period .............................. $ 12.91 $ 11.71 $ 9.46
======= ======= ========
Total return (a) .................................................... 10.25% 23.70% (5.37%)
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $12,397 $11,890 $ 5,506
Ratio of net investment income (loss) to average net assets (b) .... 4.17% 4.26% 4.07%
</TABLE>
The notes to the financial statements are an integral part of this report.
12 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
TACTICAL ASSET ALLOCATION SUB-ACCOUNT
------------------------------------------------------
JUNE 30, DECEMBER 31,
------------ ---------------------------------------
1998 1997 1996 1995 (e)
------------ ------------ ----------- ----------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ........................ $ 15.43 $ 13.40 $ 11.86 $ 10.00
Income from operations:
Net investment income (loss) ...................................... 0.29 1.02 0.46 0.58
Net realized and unrealized gain (loss) on investment ............. 0.71 1.01 1.08 1.28
-------- -------- ------- -------
Net income (loss) from operations ................................ 1.00 2.03 1.54 1.86
-------- -------- ------- -------
Accumulation unit value, end of period .............................. $ 16.43 $ 15.43 $ 13.40 $ 11.86
======== ======== ======= =======
Total return (a) .................................................... 6.48% 15.14% 13.00% 18.61%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 85,601 $ 77,923 $62,195 $34,910
Ratio of net investment income (loss) to average net assets (b) .... 3.57% 6.99% 3.71% 5.25%
</TABLE>
<TABLE>
<CAPTION>
C.A.S.E. GROWTH SUB-ACCOUNT
---------------------------------------
JUNE 30, DECEMBER 31,
------------ ------------------------
1998 1997 1996 (f)
------------ ----------- ----------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ........................ $ 15.77 $ 13.88 $ 12.87
Income from operations:
Net investment income (loss) ...................................... 0.38 3.15 0.39
Net realized and unrealized gain (loss) on investment ............. 0.22 (1.26) 0.62
-------- ------- -------
Net income (loss) from operations ................................ 0.60 1.89 1.01
-------- ------- -------
Accumulation unit value, end of period .............................. $ 16.37 $ 15.77 $ 13.88
======== ======= =======
Total return (a) .................................................... 3.80% 13.60% 7.84%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 15,178 $17,677 $ 3,612
Ratio of net investment income (loss) to average net assets (b) .... 4.53% 20.61% 4.43%
</TABLE>
<TABLE>
<CAPTION>
GLOBAL SECTOR SUB-ACCOUNT
--------------------------------------
JUNE 30, DECEMBER 31,
------------ -----------------------
1998 1997 1996 (g)
------------ ---------- ----------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ........................ $ 10.75 $ 10.52 $ 10.00
Income from operations:
Net investment income (loss) ...................................... (0.02) 0.39 (0.01)
Net realized and unrealized gain (loss) on investment ............. 1.06 (0.16) 0.53
------- ------- -------
Net income (loss) from operations ................................ 1.04 0.23 0.52
------- ------- -------
Accumulation unit value, end of period .............................. $ 11.79 $ 10.75 $ 10.52
======= ======= =======
Total return (a) .................................................... 9.71% 2.15% 5.19%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 2,555 $ 2,361 $ 2,417
Ratio of net investment income (loss) to average net assets (b) .... (0.42%) 3.54% (0.09%)
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 13
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
VALUE EQUITY SUB-ACCOUNT
---------------------------------------
JUNE 30, DECEMBER 31,
------------ ------------------------
1998 1997 1996 (g)
------------ ----------- ----------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ........................ $ 13.86 $ 11.22 $ 10.00
Income from operations:
Net investment income (loss) ...................................... (0.05) 0.07 0.02
Net realized and unrealized gain (loss) on investment ............. 0.82 2.57 1.20
------- ------- -------
Net income (loss) from operations ................................ 0.77 2.64 1.22
------- ------- -------
Accumulation unit value, end of period .............................. $ 14.63 $ 13.86 $ 11.22
======= ======= =======
Total return (a) .................................................... 5.52% 23.49% 12.25%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $52,548 $49,376 $16,679
Ratio of net investment income (loss) to average net assets (b) .... (0.69%) 0.55% 0.30%
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
EQUITY SUB-ACCOUNT
--------------------------
JUNE 30, DECEMBER 31,
1998 1997 (h)
------------ -------------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 10.62 $ 10.00
Income from operations:
Net investment income (loss) ....................................... (0.06) (0.05)
Net realized and unrealized gain (loss) on investment .............. 1.87 0.67
------- -------
Net income (loss) from operations ................................. 1.81 0.62
------- -------
Accumulation unit value, end of period ............................... $ 12.43 $ 10.62
======= =======
Total return (a) ..................................................... 17.07% 6.17%
Ratio and supplemental data:
Net assets at end of period (in thousands) .......................... $ 9,237 $ 6,377
Ratio of net investment income (loss) to average net assets (b) ..... (1.07%) (0.52%)
</TABLE>
<TABLE>
<CAPTION>
U.S. EQUITY
SUB-ACCOUNT
--------------------------
JUNE 30, DECEMBER 31,
1998 1997 (h)
------------ -------------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 12.54 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.04 0.75
Net realized and unrealized gain (loss) on investment .............. 1.67 1.79
-------- -------
Net income (loss) from operations ................................. 1.71 2.54
-------- -------
Accumulation unit value, end of period ............................... $ 14.25 $ 12.54
======== =======
Total return (a) ..................................................... 13.63% 25.44%
Ratio and supplemental data:
Net assets at end of period (in thousands) .......................... $ 16,624 $12,377
Ratio of net investment income (loss) to average net assets (b) ..... 0.58% 6.37%
</TABLE>
The notes to the financial statements are an integral part of this report.
14 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
THIRD AVENUE
VALUE
SUB-ACCOUNT
-------------
JUNE 30,
1998 (i)
-------------
<S> <C>
Accumulation unit value, beginning of period ........................ $ 10.00
Income from operations:
Net investment income (loss) ...................................... (0.06)
Net realized and unrealized gain (loss) on investment ............. (0.41)
-------
Net income (loss) from operations ................................ (0.47)
-------
Accumulation unit value, end of period .............................. $ 9.53
=======
Total return (a) .................................................... (4.68%)
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 4,642
Ratio of net investment income (loss) to average net assets (b) .... (1.22%)
</TABLE>
<TABLE>
<CAPTION>
REAL ESTATE
SECURITIES
SUB-ACCOUNT
-----------
JUNE 30,
1998 (j)
------------
<S> <C>
Accumulation unit value, beginning of period ........................ $ 10.00
Income from operations:
Net investment income (loss) ...................................... (0.02)
Net realized and unrealized gain (loss) on investment ............. (0.22)
-------
Net income (loss) from operations. ............................... (0.24)
-------
Accumulation unit value, end of period .............................. $ 9.76
=======
Total return (a) .................................................... (2.35%)
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 370
Ratio of net investment income (loss) to average net assets (b) .... (1.22%)
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.
<FN>
- -------------
(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 March 1, 1993.
(d) The inception date of this Sub-Account was March 1, 1994.
(e) The inception date of this Sub-Account was January 3, 1995.
(f) This Sub-Account option became effective May 1, 1996.
(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) The inception date of this Sub-Account was January 2, 1998.
(j) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 15
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
NOTES TO FINANCIAL STATEMENTS
June 30, 1998
(unaudited)
-----------------------------
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 ("Freedom and Attainer"); the WRL Freedom Bellwether,
the WRL Freedom Conqueror, and the WRL Freedom Wealth Creator ("Bellwether,
Conqueror, and Creator"). Information presented in these financial statements
pertains only to the Freedom and Attainer contracts. The financial statements
for the Bellwether, Conqueror, and Creator contracts are presented separately.
Each contains seventeen investment options referred to as sub-accounts. Each
sub-account invests in the corresponding Portfolio of the WRL Series Fund, Inc.
(collectively referred to as the "Fund" and individually as a "Portfolio"), a
registered management investment company under the Investment Company Act of
1940, as amended.
The Fund has entered into annually renewable investment advisory agreements
for each Portfolio with WRL Investment Management, Inc. ("WRL Management") as
investment adviser. Costs incurred in connection with the advisory services
rendered by WRL Management are paid by each Portfolio. WRL Management has
entered into sub-advisory agreements with various management companies, some of
which are affiliates of WRL. Each sub-adviser is compensated directly by WRL
Management.
On January 2, 1998 and May 1, 1998, WRL made initial contributions totaling $
450,000 to the Freedom and Attainer Annuity Account. The respective amounts of
the contributions and units received are as follows:
SUB-ACCOUNT CONTRIBUTIONS UNITS
- ----------- --------------- -------
Third Avenue Value $ 150,000 15,000
Real Estate Securities 300,000 30,000
Freedom and Attainer sub-accounts hold assets to 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 following significant accounting policies, which are in conformity with
generally accepted accounting principles for unit investment trusts, have been
consistently applied in the preparation of the Trust's financial statements.
A. VALUATION OF INVESTMENTS AND SECURITIES TRANSACTIONS
Investments in the Fund's shares are stated at the closing net asset value
("NAV") per share as determined by the Fund. Investment transactions are
accounted for on the trade date at the Fund NAV next determined after receipt of
sale or redemptions order without sales charges. Dividend income and capital
gains 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.
C. ESTIMATES
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.
NOTE 2 -- CHARGES AND DEDUCTIONS
Charges are assessed by WRL in connection with the issuance and
administration of the Contracts.
A. CONTRACT CHARGES
No deduction for sales expenses is 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. FREEDOM AND ATTAINER SUB-ACCOUNT 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
16 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
-----------------------------------------
NOTE 2 -- (CONTINUED)
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 Money Market Portfolio are declared daily and reinvested
monthly. Dividends and capital gains distributions of the remaining Portfolios
are typically declared and reinvested annually. Dividends and distributions of
the Fund are recorded on the ex-date and are generally paid to and reinvested by
the Annuity Account on the next business day after the ex-date. Dividends are
not declared by the Annuity Account, since the increase in the value of the
underlying investment in the Fund is reflected daily in the unit price used to
calculate the equity value within the Annuity Account. Consequently, a dividend
distribution by the underlying Fund does not change either the unit price or
equity values within the Annuity Account.
NOTE 4 -- SECURITIES TRANSACTIONS
Securities transactions are summarized as follows:
For the period ended June 30, 1998
<TABLE>
<CAPTION>
MONEY MARKET BOND GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C>
Purchase of long-term securities .................... $ 39,768 $ 5,152 $ 9,121
Proceeds from sales of long-term securities ......... 24,205 8,982 70,484
STRATEGIC TOTAL EMERGING
GLOBAL RETURN GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Purchase of long-term securities .................... $ 7,760 $ 6,339 $ 3,742
Proceeds from sales of long-term securities ......... 20,628 8,039 17,487
AGGRESSIVE GROWTH &
GROWTH BALANCED INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Purchase of long-term securities .................... $ 5,296 $ 4,053 $ 5,356
Proceeds from sales of long-term securities ......... 7,642 2,200 1,784
TACTICAL ASSET C.A.S.E. GLOBAL
ALLOCATION GROWTH SECTOR
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Purchase of long-term securities .................... $ 10,074 $ 1,683 $ 242
Proceeds from sales of long-term securities ......... 5,798 4,180 245
VALUE INTERNATIONAL
EQUITY EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Purchase of long-term securities .................... $ 5,570 $ 3,806 $ 8,113
Proceeds from sales of long-term securities ......... 4,925 2,049 6,079
THIRD AVENUE REAL ESTATE
VALUE SECURITIES
SUB-ACCOUNT (a) SUB-ACCOUNT (b)
Purchase of long-term securities .................... $ 6,154 $ 498
Proceeds from sales of long-term securities ......... 1,205 118
<FN>
- -------------
(a) The inception date of this Sub-Account was January 2, 1998.
(b) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
1 9 9 8 S e m i - A n n u a l R e p o r t 17
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
-----------------------------------------
NOTE 5 -- UNIT ACTIVITY
For the period ended June 30, 1998
<TABLE>
<CAPTION>
MONEY MARKET BOND GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C>
Units balance - beginning of year ......... 2,860.8 2,360.4 14,841.9
Units issued .............................. 4,902.1 444.5 806.8
Units redeemed ............................ 3,861.3 626.0 2,205.9
------- ------- --------
Units balance - end of period ............. 3,901.6 2,178.9 13,442.8
======= ======= ========
STRATEGIC TOTAL
GLOBAL RETURN EMERGING GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Units balance - beginning of year ......... 10,843.8 8,830.8 7,179.8
Units issued .............................. 1,111.1 852.0 656.8
Units redeemed ............................ 1,564.3 976.6 1,210.5
-------- ------- --------
Units balance - end of period ............. 10,390.6 8,706.2 6,626.1
======== ======= ========
AGGRESSIVE GROWTH &
GROWTH BALANCED INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Units balance - beginning of year ......... 4,172.9 1,238.7 884.7
Units issued .............................. 499.2 401.9 452.4
Units redeemed ............................ 683.6 262.0 257.3
-------- ------- --------
Units balance - end of period ............. 3,988.5 1,378.6 1,079.8
======== ======= ========
TACTICAL ASSET C.A.S.E. GLOBAL
ALLOCATION GROWTH SECTOR
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Units balance - beginning of year ......... 5,049.4 1,120.9 219.7
Units issued .............................. 940.8 134.2 25.4
Units redeemed ............................ 780.8 327.9 28.4
-------- ------- --------
Units balance - end of period ............. 5,209.4 927.2 216.7
======== ======= ========
VALUE INTERNATIONAL
EQUITY EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Units balance - beginning of year ......... 3,562.2 600.6 986.6
Units issued .............................. 831.4 343.8 751.0
Units redeemed ............................ 801.0 201.2 571.4
-------- ------- --------
Units balance - end of period ............. 3,592.6 743.2 1,166.2
======== ======= ========
THIRD AVENUE REAL ESTATE
VALUE SECURITIES
SUB-ACCOUNT (a) SUB-ACCOUNT (b)
Units balance - beginning of year ......... N/A N/A
Units issued .............................. 683.9 50.1
Units redeemed ............................ 196.9 12.2
-------- -------
Units balance - end of period ............. 487.0 37.9
======== =======
<FN>
- ----------
(a) The inception date of this Sub-Account was January 2, 1998.
(b) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
18 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
FREEDOM AND ATTAINER
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------------
NOTE 6 -- OTHER MATTERS
At June 30, 1998, the equity accounts included net unrealized appreciation
(depreciation) on investments as follows:
SUB-ACCOUNT
- -----------
Money Market ...................... $ N/A
Bond .............................. 2,065
Growth ............................ 279,707
Global ............................ 103,752
Strategic Total Return ............ 40,597
Emerging Growth ................... 66,143
Aggressive Growth ................. 23,128
Balanced .......................... 1,646
Growth & Income ................... 333
Tactical Asset Allocation ......... 10,713
C.A.S.E. Growth ................... (1,067)
Global Sector ..................... 150
Value Equity ...................... 7,670
International Equity .............. 657
U.S. Equity ....................... 1,113
Third Avenue Value ................ (297)
eal Estate Securities ............ (6)
1 9 9 8 S e m i - A n n u a l R e p o r t 19
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
STATEMENT OF ASSETS AND LIABILITIES
At June 30, 1998
All amounts (except unit value) in thousands
(unaudited)
--------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ----------- -----------
<S> <C> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 68,616 6,352 12,390
========= ========= =========
Cost ............................................... $ 68,616 $ 70,855 $ 426,006
========= ========= =========
Investment, at net asset value ...................... $ 68,616 $ 73,496 $ 614,839
Transfers receivable from depositor ................. 85 87 674
--------- --------- ---------
Total assets ....................................... 68,701 73,583 615,513
--------- --------- ---------
LIABILITIES:
Accrued expenses .................................... 3 3 24
Transfers payable to depositor ...................... 0 0 0
--------- --------- ---------
Total liabilities .................................. 3 3 24
--------- --------- ---------
Net assets ......................................... $ 68,698 $ 73,580 $ 615,489
========= ========= =========
NET ASSETS:
Contract Owners' equity:
Units .............................................. 5,837.4 5,314.7 24,536.5
========= ========= =========
Unit value ......................................... $ 11.77 $ 13.84 $ 25.08
========= ========= =========
Contract Owners' equity ............................ $ 68,698 $ 73,580 $ 615,489
--------- --------- ---------
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
--------- --------- ---------
Net assets applicable to outstanding units ......... $ 68,698 $ 73,580 $ 615,489
========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC
GLOBAL TOTAL RETURN EMERGING GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ------------ ---------------
<S> <C> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 20,835 19,245 13,219
========= ========= =========
Cost ............................................... $ 388,383 $ 266,608 $ 248,680
========= ========= =========
Investment, at net asset value ...................... $ 508,522 $ 317,469 $ 329,161
Transfers receivable from depositor ................. 557 0 323
--------- --------- ---------
Total assets ....................................... 509,079 317,469 329,484
--------- --------- ---------
LIABILITIES:
Accrued expenses .................................... 20 12 13
Transfers payable to depositor ...................... 0 165 0
--------- --------- ---------
Total liabilities .................................. 20 177 13
--------- --------- ---------
Net assets ......................................... $ 509,059 $ 317,292 $ 329,471
========= ========= =========
NET ASSETS:
Contract Owners' equity:
Units .............................................. 16,624.1 16,226.7 11,809.2
========= ========= =========
Unit value ......................................... $ 30.62 $ 19.55 $ 27.90
========= ========= =========
Contract Owners' equity ............................ $ 509,059 $ 317,292 $ 329,471
--------- --------- ---------
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
--------- --------- ---------
Net assets applicable to outstanding units ......... $ 509,059 $ 317,292 $ 329,471
========= ========= =========
</TABLE>
The notes to the financial statements are an integral part of this report.
20 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
STATEMENT OF ASSETS AND LIABILITIES
At June 30, 1998
All amounts (except unit value) in thousands
(unaudited)
--------------------------------------------
<TABLE>
<CAPTION>
GROWTH &
AGGRESSIVE GROWTH BALANCED INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------ ----------- -----------
<S> <C> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 11,061 4,361 3,884
========== ======== ========
Cost ............................................... $ 170,411 $ 49,533 $ 47,921
========== ======== ========
Investment, at net asset value ...................... $ 221,653 $ 54,322 $ 48,300
Transfers receivable from depositor ................. 0 0 0
---------- -------- --------
Total assets ....................................... 221,653 54,322 48,300
---------- -------- --------
LIABILITIES:
Accrued expenses .................................... 9 2 2
Transfers payable to depositor ...................... 392 100 46
---------- -------- --------
Total liabilities .................................. 401 102 48
---------- -------- --------
Net assets ......................................... $ 221,252 $ 54,220 $ 48,252
========== ======== ========
NET ASSETS:
Contract Owners' equity:
Units .............................................. 9,845.2 3,767.8 3,037.4
========== ======== ========
Unit value ......................................... $ 22.47 $ 14.39 $ 15.89
========== ======== ========
Contract Owners' equity ............................ $ 221,252 $ 54,220 $ 48,252
---------- -------- --------
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
---------- -------- --------
Net assets applicable to outstanding units ......... $ 221,252 $ 54,220 $ 48,252
========== ======== ========
</TABLE>
<TABLE>
<CAPTION>
TACTICAL ASSET
ALLOCATION C.A.S.E. GROWTH GLOBAL SECTOR
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- --------------- -------------
<S> <C> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 15,910 2,653 962
========= ======== ========
Cost ............................................... $ 205,937 $ 37,682 $ 10,468
========= ======== ========
Investment, at net asset value ...................... $ 226,513 $ 37,579 $ 10,958
Transfers receivable from depositor ................. 184 0 5
--------- -------- --------
Total assets ....................................... 226,697 37,579 10,963
--------- -------- --------
LIABILITIES:
Accrued expenses .................................... 9 1 0
Transfers payable to depositor ...................... 0 22 0
--------- -------- --------
Total liabilities .................................. 9 23 0
--------- -------- --------
Net assets ......................................... $ 226,688 $ 37,556 $ 10,963
========= ======== ========
NET ASSETS:
Contract Owners' equity:
Units .............................................. 13,868.0 2,963.2 933.0
========= ======== ========
Unit value ......................................... $ 16.35 $ 12.67 $ 11.75
========= ======== ========
Contract Owners' equity ............................ $ 226,688 $ 37,556 $ 10,963
--------- -------- --------
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
--------- -------- --------
Net assets applicable to outstanding units ......... $ 226,688 $ 37,556 $ 10,963
========= ======== ========
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 21
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
STATEMENT OF ASSETS AND LIABILITIES
At June 30, 1998
All amounts (except unit value) in thousands
(unaudited)
--------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
VALUE EQUITY EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ------------- -----------
<S> <C> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 8,041 1,485 3,253
========= ======== ========
Cost ............................................... $ 104,247 $ 17,149 $ 41,737
========= ======== ========
Investment, at net asset value ...................... $ 118,382 $ 18,706 $ 45,061
Transfers receivable from depositor ................. 0 36 781
--------- -------- --------
Total assets ....................................... 118,382 18,742 45,842
--------- -------- --------
LIABILITIES:
Accrued expenses .................................... 5 1 2
Transfers payable to depositor ...................... 275 0 0
--------- -------- --------
Total liabilities .................................. 280 1 2
--------- -------- --------
Net assets ......................................... $ 118,102 $ 18,741 $ 45,840
========= ======== ========
NET ASSETS:
Contract Owners' equity:
Units .............................................. 8,100.7 1,481.2 3,208.1
========= ======== ========
Unit value ......................................... $ 14.58 $ 12.40 $ 14.22
========= ======== ========
Contract Owners' equity ............................ $ 118,102 $ 18,369 $ 45,627
--------- -------- --------
Depositor's equity:
Units .............................................. N/A 30.0 15.0
========= ======== ========
Unit value ......................................... $ N/A $ 12.40 $ 14.22
========= ======== ========
Depositor's equity ................................. $ N/A $ 372 $ 213
--------- -------- --------
Net assets applicable to outstanding units ......... $ 118,102 $ 18,741 $ 45,840
========= ======== ========
</TABLE>
<TABLE>
<CAPTION>
THIRD AVENUE REAL ESTATE
VALUE SECURITIES
SUB-ACCOUNT (a) SUB-ACCOUNT (b)
--------------- ---------------
<S> <C> <C>
ASSETS:
Investment in WRL Series Fund, Inc.:
Shares ............................................. 907 57
======== ======
Cost ............................................... $ 9,218 $ 561
======== ======
Investment, at net asset value ...................... $ 8,700 $ 554
Transfers receivable from depositor ................. 2 0
-------- ------
Total assets ....................................... 8,702 554
-------- ------
LIABILITIES:
Accrued expenses .................................... 0 0
Transfers payable to depositor ...................... 0 0
-------- ------
Total liabilities .................................. 0 0
-------- ------
Net assets ......................................... $ 8,702 $ 554
======== ======
NET ASSETS:
Contract Owners' equity:
Units .............................................. 898.6 26.7
======== ======
Unit value ......................................... $ 9.52 $ 9.76
======== ======
Contract Owners' equity ............................ $ 8,559 $ 261
-------- ------
Depositor's equity:
Units .............................................. 15.0 30.0
======== ======
Unit value ......................................... $ 9.52 $ 9.76
======== ======
Depositor's equity ................................. $ 143 $ 293
-------- ------
Net assets applicable to outstanding units ......... $ 8,702 $ 554
======== ======
<FN>
- -------------
(a) The inception date of this Sub-Account was January 2, 1998.
(b) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
22 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
STATEMENT OF OPERATIONS
For period ended June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $ 1,753 $ 98 $ 387
Capital gain distributions ............................................ 0 0 4,987
-------- ------- ---------
Total investment income .............................................. 1,753 98 5,374
EXPENSES:
Mortality and expense risk ............................................ 469 476 3,558
-------- ------- ---------
Net investment income (loss) ......................................... 1,284 (378) 1,816
-------- ------- ---------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. 0 (12) 13,545
Change in unrealized appreciation (depreciation) ...................... 0 2,582 138,065
-------- ------- ---------
Net gain (loss) on investments ....................................... 0 2,570 151,610
-------- ------- ---------
Net increase (decrease) in equity accounts resulting from operations $ 1,284 $ 2,192 $ 153,426
======== ======= =========
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC EMERGING
GLOBAL TOTAL RETURN GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ------------ -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $ 2,661 $ 816 $ 0
Capital gain distributions ............................................ 0 2,130 532
--------- -------- --------
Total investment income .............................................. 2,661 2,946 532
EXPENSES:
Mortality and expense risk ............................................ 3,051 2,106 2,006
--------- -------- --------
Net investment income (loss) ......................................... (390) 840 (1,474)
--------- -------- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. 6,922 1,971 9,420
Change in unrealized appreciation (depreciation) ...................... 99,559 13,942 48,620
--------- -------- --------
Net gain (loss) on investments ....................................... 106,481 15,913 58,040
--------- -------- --------
Net increase (decrease) in equity accounts resulting from operations $ 106,091 $ 16,753 $ 56,566
========= ======== ========
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 23
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
STATEMENT OF OPERATIONS
For period ended June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH &
GROWTH BALANCED INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $ 571 $ 181 $ 852
Capital gain distributions ............................................ 3,215 55 170
-------- ------- --------
Total investment income .............................................. 3,786 236 1,022
EXPENSES:
Mortality and expense risk ............................................ 1,288 352 305
-------- ------- --------
Net investment income (loss) ......................................... 2,498 (116) 717
-------- ------- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. 2,571 470 1,012
Change in unrealized appreciation (depreciation) ...................... 39,124 1,257 (1,442)
-------- ------- --------
Net gain (loss) on investments ....................................... 41,695 1,727 (430)
-------- ------- --------
Net increase (decrease) in equity accounts resulting from operations $ 44,193 $ 1,611 $ 287
======== ======= ========
</TABLE>
<TABLE>
<CAPTION>
TACTICAL ASSET C.A.S.E. GLOBAL
ALLOCATION GROWTH SECTOR
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $ 496 $ 924 $ 43
Capital gain distributions ............................................ 4,738 227 0
-------- ------- -----
Total investment income .............................................. 5,234 1,151 43
EXPENSES:
Mortality and expense risk ............................................ 1,481 251 73
-------- ------- -----
Net investment income (loss) ......................................... 3,753 900 (30)
-------- ------- -----
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. 1,244 465 92
Change in unrealized appreciation (depreciation) ...................... 7,573 (304) 897
-------- ------- -----
Net gain (loss) on investments ....................................... 8,817 161 989
-------- ------- -----
Net increase (decrease) in equity accounts resulting from operations $ 12,570 $ 1,061 $ 959
======== ======= =====
</TABLE>
The notes to the financial statements are an integral part of this report.
24 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
STATEMENT OF OPERATIONS
For period ended June 30, 1998
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
VALUE EQUITY EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ------------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $ 59 $ 14 $ 348
Capital gain distributions ............................................ 255 0 58
------- -------- -------
Total investment income .............................................. 314 14 406
EXPENSES:
Mortality and expense risk ............................................ 767 100 255
------- -------- -------
Net investment income (loss) ......................................... (453) (86) 151
------- -------- -------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. 1,776 119 953
Change in unrealized appreciation (depreciation) ...................... 3,652 1,940 3,241
------- -------- -------
Net gain (loss) on investments ....................................... 5,428 2,059 4,194
------- -------- -------
Net increase (decrease) in equity accounts resulting from operations $ 4,975 $ 1,973 $ 4,345
======= ======== =======
</TABLE>
<TABLE>
<CAPTION>
THIRD AVENUE REAL ESTATE
VALUE SECURITIES
SUB-ACCOUNT (a) SUB-ACCOUNT (b)
--------------- ---------------
<S> <C> <C>
INVESTMENT INCOME:
Dividend income ....................................................... $ 0 $ 0
Capital gain distributions ............................................ 0 0
------- -------
Total investment income .............................................. 0 0
EXPENSES:
Mortality and expense risk ............................................ 44 1
------- -------
Net investment income (loss) ......................................... (44) (1)
------- -------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from securities transactions ................. 14 (1)
Change in unrealized appreciation (depreciation) ...................... (518) (7)
------- -------
Net gain (loss) on investments ....................................... (504) (8)
------- -------
Net increase (decrease) in equity accounts resulting from operations $ (548) $ (9)
======= =======
<FN>
- -------------
(a) The inception date of this Sub-Account was January 2, 1998.
(b) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 25
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET BOND
SUB-ACCOUNT SUB-ACCOUNT
----------------------- ------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
-------- ------------ -------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ 1,284 $ 2,409 $ (378) $ 2,193
Net gain (loss) on investment .......................... 0 0 2,570 976
-------- -------- -------- --------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 1,284 2,409 2,192 3,169
-------- -------- -------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 14,629 13,128 10,687 27,784
-------- -------- -------- --------
Less cost of units redeemed:
Administrative charges ................................ 19 29 22 30
Policy loans .......................................... 5 28 4 7
Surrender benefits .................................... 8,493 11,282 3,487 4,268
Death benefits ........................................ 850 461 162 327
-------- -------- -------- --------
9,367 11,800 3,675 4,632
-------- -------- -------- --------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 5,262 1,328 7,012 23,152
-------- -------- -------- --------
Net increase (decrease) in equity accounts ............ 6,546 3,737 9,204 26,321
Depositor's equity contribution (redemption) ........... 0 0 0 0
NET ASSETS:
Beginning of period .................................... 62,152 58,415 64,376 38,055
-------- -------- -------- --------
End of period .......................................... $ 68,698 $ 62,152 $ 73,580 $ 64,376
======== ======== ======== ========
<CAPTION>
GROWTH
SUB-ACCOUNT
-------------------------
JUNE 30, DECEMBER 31,
1998 1997
--------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ 1,816 $ 40,430
Net gain (loss) on investment .......................... 151,610 12,938
--------- ---------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 153,426 53,368
--------- ---------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 52,458 89,734
--------- ---------
Less cost of units redeemed:
Administrative charges ................................ 241 356
Policy loans .......................................... 113 165
Surrender benefits .................................... 21,477 25,016
Death benefits ........................................ 689 3,145
--------- ---------
22,520 28,682
--------- ---------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 29,938 61,052
--------- ---------
Net increase (decrease) in equity accounts ............ 183,364 114,420
Depositor's equity contribution (redemption) ........... 0 0
NET ASSETS:
Beginning of period .................................... 432,125 317,705
--------- ---------
End of period .......................................... $ 615,489 $ 432,125
========= =========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL
SUB-ACCOUNT
-------------------------
JUNE 30, DECEMBER 31,
1998 1997
--------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ......................... $ (390) $ 39,353
Net gain (loss) on investment ........................ 106,481 4,847
--------- ---------
Net increase (decrease) in equity accounts resulting
from operations ..................................... 106,091 44,200
--------- ---------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................. 48,177 120,751
--------- ---------
Less cost of units redeemed:
Administrative charges .............................. 183 247
Policy loans ........................................ 66 132
Surrender benefits .................................. 15,828 19,577
Death benefits ...................................... 644 1,438
--------- ---------
16,721 21,394
--------- ---------
Increase (decrease) in equity accounts from capital
unit transactions .................................. 31,456 99,357
--------- ---------
Net increase (decrease) in equity accounts .......... 137,547 143,557
Depositor's equity contribution (redemption) ......... 0 0
NET ASSETS:
Beginning of period .................................. 371,512 227,955
--------- ---------
End of period ........................................ $ 509,059 $ 371,512
========= =========
<CAPTION>
STRATEGIC
TOTAL RETURN EMERGING GROWTH
SUB-ACCOUNT SUB-ACCOUNT
------------------------- -------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
--------- ------------ --------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ......................... $ 840 $ 19,963 $ (1,474) $ 20,700
Net gain (loss) on investment ........................ 15,913 23,213 58,040 18,088
--------- --------- --------- ---------
Net increase (decrease) in equity accounts resulting
from operations ..................................... 16,753 43,176 56,566 38,788
--------- --------- --------- ---------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................. 33,977 57,079 25,188 54,227
--------- --------- --------- ---------
Less cost of units redeemed:
Administrative charges .............................. 89 140 135 198
Policy loans ........................................ 12 65 45 114
Surrender benefits .................................. 12,260 15,264 10,425 12,701
Death benefits ...................................... 432 1,736 408 861
--------- --------- --------- ---------
12,793 17,205 11,013 13,874
--------- --------- --------- ---------
Increase (decrease) in equity accounts from capital
unit transactions .................................. 21,184 39,874 14,175 40,353
--------- --------- --------- ---------
Net increase (decrease) in equity accounts .......... 37,937 83,050 70,741 79,141
Depositor's equity contribution (redemption) ......... 0 0 0 0
NET ASSETS:
Beginning of period .................................. 279,355 196,305 258,730 179,589
--------- --------- --------- ---------
End of period ........................................ $ 317,292 $ 279,355 $ 329,471 $ 258,730
========= ========= ========= =========
</TABLE>
The notes to the financial statements are an integral part of this report.
26 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH BALANCED
SUB-ACCOUNT SUB-ACCOUNT
------------------------ ------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
-------- ------------ -------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ 2,498 $ 12,713 $ (116) $ 3,921
Net gain (loss) on investment .......................... 41,695 11,949 1,727 1,279
-------- --------- -------- --------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 44,193 24,662 1,611 5,200
-------- --------- -------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 22,222 45,729 11,148 12,830
-------- --------- -------- --------
Less cost of units redeemed:
Administrative charges ................................ 93 135 17 24
Policy loans .......................................... 54 61 13 0
Surrender benefits .................................... 7,151 8,242 2,331 2,303
Death benefits ........................................ 266 384 80 535
-------- --------- -------- --------
7,564 8,822 2,441 2,862
-------- --------- -------- --------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 14,658 36,907 8,707 9,968
-------- --------- -------- --------
Net increase (decrease) in equity accounts ............ 58,851 61,569 10,318 15,168
Depositor's equity contribution (redemption) ........... 0 0 0 0
NET ASSETS:
Beginning of period .................................... 162,401 100,832 43,902 28,734
-------- --------- -------- --------
End of period .......................................... $ 221,252 $ 162,401 $ 54,220 $ 43,902
========= ========= ======== ========
<CAPTION>
GROWTH & INCOME
SUB-ACCOUNT
------------------------
JUNE 30, DECEMBER 31,
1998 1997
-------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ 717 $ 4,651
Net gain (loss) on investment .......................... (430) 1,110
-------- --------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 287 5,761
-------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 13,362 13,075
-------- --------
Less cost of units redeemed:
Administrative charges ................................ 14 18
Policy loans .......................................... 10 14
Surrender benefits .................................... 1,873 1,590
Death benefits ........................................ 91 595
-------- --------
1,988 2,217
-------- --------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 11,374 10,858
-------- --------
Net increase (decrease) in equity accounts ............ 11,661 16,619
Depositor's equity contribution (redemption) ........... 0 0
NET ASSETS:
Beginning of period .................................... 36,591 19,972
-------- --------
End of period .......................................... $ 48,252 $ 36,591
======== ========
</TABLE>
<TABLE>
<CAPTION>
TACTICAL ASSET ALLOCATION C.A.S.E. GROWTH
SUB-ACCOUNT SUB-ACCOUNT
------------------------- -----------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
--------- ------------ -------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ 3,753 $ 12,057 $ 900 $ 2,501
Net gain (loss) on investment .......................... 8,817 10,512 161 (75)
-------- --------- -------- --------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 12,570 22,569 1,061 2,426
-------- --------- -------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 29,045 58,937 5,547 18,228
-------- --------- -------- --------
Less cost of units redeemed:
Administrative charges ................................ 52 70 12 12
Policy loans .......................................... 13 36 7 7
Surrender benefits .................................... 8,702 11,696 983 951
Death benefits ........................................ 244 1,197 45 206
-------- --------- -------- --------
9,011 12,999 1,047 1,176
-------- --------- -------- --------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 20,034 45,938 4,500 17,052
-------- --------- -------- --------
Net increase (decrease) in equity accounts ............ 32,604 68,507 5,561 19,478
Depositor's equity contribution (redemption) ........... 0 0 0 (25)
NET ASSETS:
Beginning of period .................................... 194,084 125,577 31,995 12,542
-------- --------- -------- --------
End of period .......................................... $ 226,688 $ 194,084 $ 37,556 $ 31,995
========= ========= ======== ========
<CAPTION>
GLOBAL SECTOR
SUB-ACCOUNT
------------------------
JUNE 30, DECEMBER 31,
1998 1997
-------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ (30) $ 416
Net gain (loss) on investment .......................... 989 (382)
-------- --------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 959 34
-------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... (78) 7,204
-------- --------
Less cost of units redeemed:
Administrative charges ................................ 4 3
Policy loans .......................................... 3 1
Surrender benefits .................................... 255 390
Death benefits ........................................ 0 9
-------- --------
262 403
-------- --------
Increase (decrease) in equity accounts from capital
unit transactions .................................... (340) 6,801
-------- --------
Net increase (decrease) in equity accounts ............ 619 6,835
Depositor's equity contribution (redemption) ........... 0 0
NET ASSETS:
Beginning of period .................................... 10,344 3,509
-------- --------
End of period .......................................... $ 10,963 $ 10,344
======== ========
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 27
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
All amounts in thousands
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
VALUE EQUITY
SUB-ACCOUNT
-------------------------
JUNE 30, DECEMBER 31,
1998 1997
--------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ (453) $ 384
Net gain (loss) on investment .......................... 5,428 10,382
--------- --------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 4,975 10,766
--------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 20,878 67,627
--------- --------
Less cost of units redeemed:
Administrative charges ................................ 28 26
Policy loans .......................................... 36 10
Surrender benefits .................................... 4,902 4,425
Death benefits ........................................ 57 248
--------- --------
5,023 4,709
--------- --------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 15,855 62,918
--------- --------
Net increase (decrease) in equity accounts ............ 20,830 73,684
Depositor's equity contribution (redemption) ........... 0 (171)
NET ASSETS:
Beginning of period .................................... 97,272 23,759
--------- --------
End of period .......................................... $ 118,102 $ 97,272
========= ========
<CAPTION>
INTERNATIONAL EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT
------------------------ -----------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 (a) 1998 1997 (a)
-------- ------------ -------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ (86) $ (35) $ 151 $ 839
Net gain (loss) on investment .......................... 2,059 (219) 4,194 891
-------- -------- -------- --------
Net increase (decrease) in equity accounts resulting
from operations ....................................... 1,973 (254) 4,345 1,730
-------- -------- -------- --------
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) .................... 6,014 11,350 16,928 26,831
-------- -------- -------- --------
Less cost of units redeemed:
Administrative charges ................................ 4 2 7 2
Policy loans .......................................... 0 5 4 0
Surrender benefits .................................... 353 248 2,213 1,886
Death benefits ........................................ 30 0 31 1
-------- -------- -------- --------
387 255 2,255 1,889
-------- -------- -------- --------
Increase (decrease) in equity accounts from capital
unit transactions .................................... 5,627 11,095 14,673 24,942
-------- -------- -------- --------
Net increase (decrease) in equity accounts ............ 7,600 10,841 19,018 26,672
Depositor's equity contribution (redemption) ........... 0 300 0 150
NET ASSETS:
Beginning of period .................................... 11,141 0 26,822 0
-------- -------- -------- --------
End of period .......................................... $ 18,741 $ 11,141 $ 45,840 $ 26,822
======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
THIRD AVENUE REAL ESTATE
VALUE SECURITIES
SUB-ACCOUNT SUB-ACCOUNT
------------ -----------
JUNE 30, JUNE 30,
1998 (b) 1998 (c)
------------ -----------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .......................... $ (44) $ (1)
Net gain (loss) on investment ......................... (504) (8)
------- -----
Net increase (decrease) in equity accounts resulting
from operations ...................................... (548) (9)
------- -----
CAPITAL UNIT TRANSACTIONS:
Proceeds from units sold (redeemed) ................... 9,252 263
------- -----
Less cost of units redeemed:
Administrative charges ............................... 1 0
Policy loans ......................................... 0 0
Surrender benefits ................................... 151 0
Death benefits ....................................... 0 0
------- -----
152 0
------- -----
Increase (decrease) in equity accounts from capital
unit transactions ................................... 9,100 263
------- -----
Net increase (decrease) in equity accounts ........... 8,552 254
Depositor's equity contribution (redemption) .......... 150 300
NET ASSETS:
Beginning of period ................................... 0 0
------- -----
End of period ......................................... $ 8,702 $ 554
======= =====
<FN>
- ------------
(a) The inception date of this Sub-Account was January 2, 1997.
(b) The inception date of this Sub-Account was January 2, 1998.
(c) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
28 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
MONEY MARKET SUB-ACCOUNT
-------------------------
JUNE 30, DECEMBER 31,
------------ ------------
1998 1997
------------ ------------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 11.55 $ 11.12
Income from operations:
Net investment income (loss) ....................................... 0.22 0.43
Net realized and unrealized gain (loss) on investment .............. 0.00 0.00
-------- --------
Net income (loss) from operations ................................. 0.22 0.43
-------- --------
Accumulation unit value, end of period ............................... $ 11.77 $ 11.55
======== ========
Total return (a) ..................................................... 1.92% 3.84%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 68,698 $ 62,152
Ratio of net investment income (loss) to average net assets (b) .... 3.80% 3.78%
<CAPTION>
MONEY MARKET SUB-ACCOUNT
----------------------------------------------
DECEMBER 31,
----------------------------------------------
1996 1995 1994 1993
-------- -------- -------- -------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ......................... $ 10.73 $ 10.32 $ 10.11 $ 10.01
Income from operations:
Net investment income (loss) ....................................... 0.39 0.41 0.21 0.10
Net realized and unrealized gain (loss) on investment .............. 0.00 0.00 0.00 0.00
-------- -------- -------- -------
Net income (loss) from operations ................................. 0.39 0.41 0.21 0.10
-------- -------- -------- -------
Accumulation unit value, end of period ............................... $ 11.12 $ 10.73 $ 10.32 $ 10.11
======== ======== ======== =======
Total return (a) ..................................................... 3.65% 3.96% 2.07% 1.01%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 58,415 $ 28,524 $ 28,537 $ 8,786
Ratio of net investment income (loss) to average net assets (b) .... 3.57% 3.89% 2.26% 1.03%
</TABLE>
<TABLE>
<CAPTION>
BOND SUB-ACCOUNT
-----------------------
JUNE 30, DECEMBER 31,
-------- ------------
1998 1997
-------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 13.41 $ 12.46
Income from operations:
Net investment income (loss) ....................................... (0.08) 0.67
Net realized and unrealized gain (loss) on investment .............. 0.51 0.28
------- --------
Net income (loss) from operations ................................. 0.43 0.95
------- --------
Accumulation unit value, end of period ............................... $ 13.84 $ 13.41
======= ========
Total return (a) ..................................................... 3.27% 7.64%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $73,580 $ 64,376
Ratio of net investment income (loss) to average net assets (b) .... (1.10%) 5.26%
<CAPTION>
BOND SUB-ACCOUNT
-------------------------------------------------
DECEMBER 31,
-------------------------------------------------
1996 1995 1994 1993
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ......................... $ 12.61 $ 10.40 $ 11.33 $ 10.14
Income from operations:
Net investment income (loss) ....................................... 0.56 0.64 0.52 2.69
Net realized and unrealized gain (loss) on investment .............. (0.71) 1.57 (1.45) (1.50)
------- ------- ------- -------
Net income (loss) from operations ................................. (0.15) 2.21 (0.93) 1.19
------- ------- ------- -------
Accumulation unit value, end of period ............................... $ 12.46 $ 12.61 $ 10.40 $ 11.33
======= ======= ======= =======
Total return (a) ..................................................... (1.25%) 21.28% (8.23%) 11.81%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $38,055 $32,772 $17,614 $17,280
Ratio of net investment income (loss) to average net assets (b) .... 4.60% 5.45% 4.91% 24.79%
</TABLE>
<TABLE>
<CAPTION>
GROWTH SUB-ACCOUNT
--------------------------
JUNE 30, DECEMBER 31,
------------- ------------
1998 1997
------------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period .......................... $ 18.57 $ 16.02
Income from operations:
Net investment income (loss) ........................................ 0.08 1.87
Net realized and unrealized gain (loss) on investment ............... 6.43 0.68
--------- ---------
Net income (loss) from operations .................................. 6.51 2.55
--------- ---------
Accumulation unit value, end of period ................................ $ 25.08 $ 18.57
========= =========
Total return (a) ...................................................... 35.09% 15.91%
Ratio and supplemental data:
Net assets at end of period (in thousands) .......................... $ 615,489 $ 432,125
Ratio of net investment income (loss) to average net assets (b) ..... 0.71% 10.53%
<CAPTION>
GROWTH SUB-ACCOUNT
-----------------------------------------------------
DECEMBER 31,
-----------------------------------------------------
1996 1995 1994 1993
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period .......................... $ 13.77 $ 9.49 $ 10.50 $ 10.24
Income from operations:
Net investment income (loss) ........................................ 0.95 1.30 (0.03) 0.31
Net realized and unrealized gain (loss) on investment ............... 1.30 2.98 (0.98) (0.05)
--------- --------- -------- --------
Net income (loss) from operations .................................. 2.25 4.28 (1.01) 0.26
--------- --------- -------- --------
Accumulation unit value, end of period ................................ $ 16.02 $ 13.77 $ 9.49 $ 10.50
========= ========= ======== ========
Total return (a) ...................................................... 16.32% 45.08% (9.58%) 2.55%
Ratio and supplemental data:
Net assets at end of period (in thousands) .......................... $ 317,705 $ 198,139 $ 112,383 $ 87,415
Ratio of net investment income (loss) to average net assets (b) ..... 6.21% 11.07% (0.26%) 3.14%
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 29
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
GLOBAL SUB-ACCOUNT
-------------------------
JUNE 30, DECEMBER 31,
---------- ------------
1998 1997
---------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 23.92 $ 20.43
Income from operations:
Net investment income (loss) ....................................... (0.02) 2.85
Net realized and unrealized gain (loss) on investment .............. 6.72 0.64
-------- ---------
Net income (loss) from operations ................................. 6.70 3.49
-------- ---------
Accumulation unit value, end of period ............................... $ 30.62 $ 23.92
======== =========
Total return (a) ..................................................... 28.01% 17.10%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 509,059 $ 371,512
Ratio of net investment income (loss) to average net assets (b) .... (0.18%) 12.33%
<CAPTION>
GLOBAL SUB-ACCOUNT
----------------------------------------------------
DECEMBER 31,
----------------------------------------------------
1996 1995 1994 1993
------------- ------------- ------------ -----------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ......................... $ 16.22 $ 13.36 $ 13.52 $ 10.15
Income from operations:
Net investment income (loss) ....................................... 1.79 0.43 0.53 0.11
Net realized and unrealized gain (loss) on investment .............. 2.42 2.43 (0.69) 3.26
--------- --------- ------- -------
Net income (loss) from operations ................................. 4.21 2.86 (0.16) 3.37
--------- --------- ------- -------
Accumulation unit value, end of period ............................... $ 20.43 $ 16.22 $ 13.36 $ 13.52
========= ========= ======= =======
Total return (a) ..................................................... 25.96% 21.35% (1.14%) 33.17%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 227,955 $ 111,958 $95,829 $29,905
Ratio of net investment income (loss) to average net assets (b) .... 9.45% 2.96% 3.95% 0.99%
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC TOTAL RETURN
SUB-ACCOUNT
--------------------------
JUNE 30, DECEMBER 31,
------------- ------------
1998 1997
------------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 18.47 $ 15.37
Income from operations:
Net investment income (loss) ....................................... 0.05 1.42
Net realized and unrealized gain (loss) on investment .............. 1.03 1.68
--------- ---------
Net income (loss) from operations ................................. 1.08 3.10
--------- ---------
Accumulation unit value, end of period ............................... $ 19.55 $ 18.47
========= =========
Total return (a) ..................................................... 5.86% 20.16%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 317,292 $ 279,355
Ratio of net investment income (loss) to average net assets (b) .... 0.55% 8.31%
<CAPTION>
STRATEGIC TOTAL RETURN SUB-ACCOUNT
----------------------------------------------------
DECEMBER 31,
----------------------------------------------------
1996 1995 1994 1993 (c)
------------- ------------- ------------ -----------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ......................... $ 13.56 $ 11.03 $ 11.24 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.94 0.59 0.16 0.20
Net realized and unrealized gain (loss) on investment .............. 0.87 1.94 (0.37) 1.04
--------- --------- ------- -------
Net income (loss) from operations ................................. 1.81 2.53 (0.21) 1.24
--------- --------- ------- -------
Accumulation unit value, end of period ............................... $ 15.37 $ 13.56 $ 11.03 $ 11.24
========= ========= ======= =======
Total return (a) ..................................................... 13.40% 22.93% (1.92%) 12.43%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 196,305 $ 101,651 $71,733 $28,312
Ratio of net investment income (loss) to average net assets (b) .... 6.55% 4.76% 1.49% 2.24%
</TABLE>
<TABLE>
<CAPTION>
EMERGING GROWTH SUB-ACCOUNT
---------------------------
JUNE 30, DECEMBER 31,
------------- -------------
1998 1997
------------- -------------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 22.94 $ 19.15
Income from operations:
Net investment income (loss) ....................................... (0.13) 2.00
Net realized and unrealized gain (loss) on investment .............. 5.09 1.79
-------- ---------
Net income (loss) from operations ................................. 4.96 3.79
-------- ---------
Accumulation unit value, end of period ............................... $ 27.90 $ 22.94
======== =========
Total return (a) ..................................................... 21.63% 19.77%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 329,471 $ 258,730
Ratio of net investment income (loss) to average net assets (b) .... (1.02%) 9.45%
<CAPTION>
EMERGING GROWTH SUB-ACCOUNT
----------------------------------------------------
DECEMBER 31,
----------------------------------------------------
1996 1995 1994 1993 (c)
------------- ------------- ------------ -----------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ......................... $ 16.34 $ 11.29 $ 12.35 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.73 0.54 (0.15) (0.14)
Net realized and unrealized gain (loss) on investment .............. 2.08 4.51 (0.91) 2.49
--------- --------- ------- -------
Net income (loss) from operations ................................. 2.81 5.05 (1.06) 2.35
--------- --------- ------- -------
Accumulation unit value, end of period ............................... $ 19.15 $ 16.34 $ 11.29 $ 12.35
========= ========= ======= =======
Total return (a) ..................................................... 17.23% 44.75% (8.65%) 23.54%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 179,589 $ 105,115 $62,615 $25,444
Ratio of net investment income (loss) to average net assets (b) .... 3.96% 3.85% (1.33%) (1.44%)
</TABLE>
The notes to the financial statements are an integral part of this report.
30 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
SUB-ACCOUNT
--------------------------
JUNE 30, DECEMBER 31,
------------- ------------
1998 1997
------------- ------------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 17.77 $ 14.50
Income from operations:
Net investment income (loss) ....................................... 0.27 1.60
Net realized and unrealized gain (loss) on investment .............. 4.43 1.67
--------- ---------
Net income (loss) from operations ................................. 4.70 3.27
--------- ---------
Accumulation unit value, end of period ............................... $ 22.47 $ 17.77
========= =========
Total return (a) ..................................................... 26.50% 22.52%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 221,252 $ 162,401
Ratio of net investment income (loss) to average net assets (b) .... 2.68% 9.55%
<CAPTION>
AGGRESSIVE GROWTH SUB-ACCOUNT
--------------------------------------
DECEMBER 31,
--------------------------------------
1996 1995 1994 (d)
------------- ----------- ------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ......................... $ 13.31 $ 9.78 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.31 0.40 (0.10)
Net realized and unrealized gain (loss) on investment .............. 0.88 3.13 (0.12)
--------- ------- -------
Net income (loss) from operations ................................. 1.19 3.53 (0.22)
--------- ------- -------
Accumulation unit value, end of period ............................... $ 14.50 $ 13.31 $ 9.78
========= ======= =======
Total return (a) ..................................................... 8.91% 36.10% (2.18%)
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 100,832 $60,420 $11,403
Ratio of net investment income (loss) to average net assets (b) .... 2.22% 3.04% (1.19%)
</TABLE>
<TABLE>
<CAPTION>
BALANCED SUB-ACCOUNT
-------------------------
JUNE 30, DECEMBER 31,
------------ ------------
1998 1997
------------ -----------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 13.91 $ 12.05
Income from operations:
Net investment income (loss) ....................................... (0.03) 1.40
Net realized and unrealized gain (loss) on investment .............. 0.51 0.46
------- -------
Net income (loss) from operations ................................. 0.48 1.86
------- -------
Accumulation unit value, end of period ............................... $ 14.39 $ 13.91
======= =======
Total return (a) ..................................................... 3.46% 15.47%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $54,220 $43,902
Ratio of net investment income (loss) to average net assets (b) .... (0.45%) 10.72%
<CAPTION>
BALANCED SUB-ACCOUNT
-------------------------------------
DECEMBER 31,
-------------------------------------
1996 1995 1994 (d)
------------ ----------- ------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ......................... $ 11.03 $ 9.34 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.30 0.32 0.27
Net realized and unrealized gain (loss) on investment .............. 0.72 1.37 (0.93)
-------- ------- --------
Net income (loss) from operations ................................. 1.02 1.69 (0.66)
-------- ------- --------
Accumulation unit value, end of period ............................... $ 12.05 $ 11.03 $ 9.34
======== ======= ========
Total return (a) ..................................................... 9.18% 18.13% (6.61%)
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 28,734 $16,069 $ 7,936
Ratio of net investment income (loss) to average net assets (b) .... 2.69% 3.16% 3.48%
</TABLE>
<TABLE>
<CAPTION>
GROWTH & INCOME
SUB-ACCOUNT
-------------------------
JUNE 30, DECEMBER 31,
------------ ------------
1998 1997
------------ -----------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 15.80 $ 12.85
Income from operations:
Net investment income (loss) ....................................... 0.26 2.52
Net realized and unrealized gain (loss) on investment .............. (0.17) 0.43
-------- -------
Net income (loss) from operations ................................. 0.09 2.95
-------- -------
Accumulation unit value, end of period ............................... $ 15.89 $ 15.80
======== =======
Total return (a) ..................................................... 0.55% 22.92%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 48,252 $36,591
Ratio of net investment income (loss) to average net assets (b) .... 3.26% 18.15%
<CAPTION>
GROWTH & INCOME SUB-ACCOUNT
------------------------------------
DECEMBER 31,
------------------------------------
1996 1995 1994 (d)
----------- ----------- ------------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ......................... $ 11.68 $ 9.45 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.68 0.47 0.33
Net realized and unrealized gain (loss) on investment .............. 0.49 1.76 (0.88)
------- ------- --------
Net income (loss) from operations ................................. 1.17 2.23 (0.55)
------- ------- --------
Accumulation unit value, end of period ............................... $ 12.85 $ 11.68 $ 9.45
======= ======= ========
Total return (a) ..................................................... 10.08% 23.52% (5.47%)
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $19,972 $10,086 $ 3,786
Ratio of net investment income (loss) to average net assets (b) .... 5.68% 4.50% 4.18%
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 31
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
TACTICAL ASSET ALLOCATION SUB-ACCOUNT
-----------------------------------------------------
JUNE 30, DECEMBER 31,
------------- ---------------------------------------
1998 1997 1996 1995 (e)
------------- ------------- ------------- -----------
<S> <C> <C> <C> <C>
Accumulation unit value, beginning of period ......................... $ 15.36 $ 13.36 $ 11.84 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.28 1.06 0.47 0.82
Net realized and unrealized gain (loss) on investment .............. 0.71 0.94 1.05 1.02
--------- --------- --------- -------
Net income (loss) from operations ................................. 0.99 2.00 1.52 1.84
--------- --------- --------- -------
Accumulation unit value, end of period ............................... $ 16.35 $ 15.36 $ 13.36 $ 11.84
========= ========= ========= =======
Total return (a) ..................................................... 6.40% 14.97% 12.83% 18.43%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 226,688 $ 194,084 $ 125,577 $72,300
Ratio of net investment income (loss) to average net assets (b) .... 3.51% 7.30% 3.72% 7.29%
</TABLE>
<TABLE>
<CAPTION>
C.A.S.E. GROWTH SUB-ACCOUNT
----------------------------------------
JUNE 30, DECEMBER 31,
------------ -------------------------
1998 1997 1996 (f)
------------ ----------- -----------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ........................ $ 12.22 $ 10.77 $ 10.00
Income from operations:
Net investment income (loss) ...................................... 0.32 1.34 0.36
Net realized and unrealized gain (loss) on investment ............. 0.13 0.11 0.41
-------- ------- --------
Net income (loss) from operations ................................ 0.45 1.45 0.77
-------- ------- --------
Accumulation unit value, end of period .............................. $ 12.67 $ 12.22 $ 10.77
======== ======= ========
Total return (a) .................................................... 3.72% 13.43% 7.73%
Ratio and supplemental data:
Net assets at end of period (in thousands) ........................ $ 37,556 $31,995 $ 12,542
Ratio of net investment income (loss) to average net assets (b) ... 4.97% 11.31% 5.46%
</TABLE>
<TABLE>
<CAPTION>
GLOBAL SECTOR SUB-ACCOUNT
-----------------------------------------
JUNE 30, DECEMBER 31,
------------ --------------------------
1998 1997 1996 (f)
------------ ------------ -----------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ........................ $ 10.72 $ 10.51 $ 10.00
Income from operations:
Net investment income (loss) ...................................... (0.03) 0.69 0.04
Net realized and unrealized gain (loss) on investment ............. 1.06 (0.48) 0.47
------- -------- -------
Net income (loss) from operations ................................ 1.03 0.21 0.51
------- -------- -------
Accumulation unit value, end of period .............................. $ 11.75 $ 10.72 $ 10.51
======= ======== =======
Total return (a) .................................................... 9.63% 1.99% 5.09%
Ratio and supplemental data:
Net assets at end of period (in thousands) ........................ $10,963 $ 10,344 $ 3,509
Ratio of net investment income (loss) to average net assets (b) ... (0.57%) 6.30% 0.59%
</TABLE>
The notes to the financial statements are an integral part of this report.
32 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
VALUE EQUITY SUB-ACCOUNT
-----------------------------------------
JUNE 30, DECEMBER 31,
------------- -------------------------
1998 1997 1996 (f)
------------- ----------- -----------
<S> <C> <C> <C>
Accumulation unit value, beginning of period ......................... $ 13.83 $ 11.21 $ 10.00
Income from operations:
Net investment income (loss) ....................................... (0.06) 0.08 0.02
Net realized and unrealized gain (loss) on investment .............. 0.81 2.54 1.19
-------- ------- -------
Net income (loss) from operations ................................. 0.75 2.62 1.21
-------- ------- -------
Accumulation unit value, end of period ............................... $ 14.58 $ 13.83 $ 11.21
======== ======= =======
Total return (a) ..................................................... 5.44% 23.30% 12.13%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 118,102 $97,272 $23,759
Ratio of net investment income (loss) to average net assets (b) .... (0.82%) 0.63% 0.33%
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY
SUB-ACCOUNT
----------------------------
JUNE 30, DECEMBER 31,
1998 1997 (g)
------------ -------------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 10.60 $ 10.00
Income from operations:
Net investment income (loss) ....................................... (0.07) (0.06)
Net realized and unrealized gain (loss) on investment .............. 1.87 0.66
------- -------
Net income (loss) from operations ................................. 1.80 0.60
------- -------
Accumulation unit value, end of period ............................... $ 12.40 $ 10.60
======= =======
Total return (a) ..................................................... 16.98% 6.01%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $18,741 $11,141
Ratio of net investment income (loss) to average net assets (b) .... (1.19%) (0.58%)
</TABLE>
<TABLE>
<CAPTION>
U.S. EQUITY
SUB-ACCOUNT
----------------------------
JUNE 30, DECEMBER 31,
1998 1997 (g)
------------ -------------
<S> <C> <C>
Accumulation unit value, beginning of period ......................... $ 12.53 $ 10.00
Income from operations:
Net investment income (loss) ....................................... 0.06 0.95
Net realized and unrealized gain (loss) on investment .............. 1.63 1.58
-------- -------
Net income (loss) from operations ................................. 1.69 2.53
-------- -------
Accumulation unit value, end of period ............................... $ 14.22 $ 12.53
======== =======
Total return (a) ..................................................... 13.55% 25.26%
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 45,840 $26,822
Ratio of net investment income (loss) to average net assets (b) .... 0.82% 7.99%
</TABLE>
The notes to the financial statements are an integral part of this report.
1 9 9 8 S e m i - A n n u a l R e p o r t 33
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
SELECTED PER UNIT DATA AND RATIOS*
For the period ended
(unaudited)
----------------------------------
<TABLE>
<CAPTION>
THIRD AVENUE
VALUE
SUB-ACCOUNT
-------------
JUNE 30,
1998 (h)
-------------
<S> <C>
Accumulation unit value, beginning of period ......................... $ 10.00
Income from operations:
Net investment income (loss) ....................................... (0.07)
Net realized and unrealized gain (loss) on investment .............. (0.41)
-------
Net income (loss) from operations ................................. (0.48)
-------
Accumulation unit value, end of period ............................... $ 9.52
=======
Total return (a) ..................................................... (4.75%)
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 8,702
Ratio of net investment income (loss) to average net assets (b) .... (1.36%)
</TABLE>
<TABLE>
<CAPTION>
REAL ESTATE
SECURITIES
SUB-ACCOUNT
-----------
JUNE 30,
1998 (i)
-----------
<S> <C>
Accumulation unit value, beginning of period ......................... $ 10.00
Income from operations:
Net investment income (loss) ....................................... (0.02)
Net realized and unrealized gain (loss) on investment .............. (0.22)
-------
Net income (loss) from operations ................................. (0.24)
-------
Accumulation unit value, end of period ............................... $ 9.76
=======
Total return (a) ..................................................... (2.38%)
Ratio and supplemental data:
Net assets at end of period (in thousands) ......................... $ 554
Ratio of net investment income (loss) to average net assets (b) .... (1.39%)
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.
<FN>
- ---------------
(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 March 1, 1993.
(d) The inception date of this Sub-Account was March 1, 1994.
(e) The inception date of this Sub-Account was January 3, 1995.
(f) The inception date of this Sub-Account was May 1, 1996.
(g) The inception date of this Sub-Account was January 2, 1997.
(h) The inception date of this Sub-Account was January 2, 1998.
(i) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
34 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
NOTES TO FINANCIAL STATEMENTS
June 30, 1998
(unaudited)
----------------------------------
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 ("Freedom and Attainer"); the WRL Freedom Bellwether,
the WRL Freedom Conqueror, and the WRL Freedom Wealth Creator ("Bellwether,
Conqueror, and Creator"). Information presented in these financial statements
pertains only to Bellwether, Conqueror, and Creator contracts. The financial
statements for Freedom and Attainer contracts are presented separately. Each
contains seventeen investment options referred to as sub-accounts. Each
sub-account invests in the corresponding portfolio of the WRL Series Fund, Inc.
(collectively referred to as the "Fund" and individually as a "Portfolio"), a
registered management investment company under the Investment Company Act of
1940, as amended.
The Fund has entered into annually renewable investment advisory agreements
for each Portfolio with WRL Investment Management, Inc. ("WRL Management") as
investment adviser. Costs incurred in connection with the advisory services
rendered by WRL Management are paid by each Portfolio. WRL Management has
entered into sub-advisory agreements with various management companies, some of
which are affiliates of WRL. Each sub-adviser is compensated directly by WRL
Management.
On January 2, 1998 and May 1, 1998, WRL made initial contributions totaling $
450,000 to the Bellwether, Conqueror, and Creator Annuity Account. The
respective amounts of the contributions and units received are as follows:
SUB-ACCOUNT CONTRIBUTIONS UNITS
- ----------- ------------- -----
Third Avenue Value $ 150,000 15,000
Real Estate Securities 300,000 30,000
Bellwether, Conqueror, and Creator sub-accounts hold assets to 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 following significant accounting policies, which are in conformity with
generally accepted accounting principles for unit investment trusts, have been
consistently applied in the preparation of the Trust's financial statements.
A. VALUATION OF INVESTMENTS AND SECURITIES TRANSACTIONS
Investments in the Fund's shares are stated at the closing net asset value
("NAV") per share as determined by the Fund. Investment transactions are
accounted for on the trade date at the Fund NAV next determined after receipt of
sale or redemption orders without sales charges. Dividend income and capital
gains 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.
C. ESTIMATES
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.
NOTE 2 -- CHARGES AND DEDUCTIONS
Charges are assessed by WRL in connection with the issuance and
administration of the Contracts.
A. CONTRACT CHARGES
No deduction for sales expenses is 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. BELLWETHER, CONQUEROR, AND CREATOR SUB-ACCOUNT CHARGES
A daily charge equal to an annual rate of 1.40% of average daily net assets
is assessed to compensate WRL for assumption of mortality and expense risks and
administrative services in
1 9 9 8 S e m i - A n n u a l R e p o r t 35
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
-----------------------------------------
NOTE 2 -- (CONTINUED)
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 Money Market Portfolio are declared daily and reinvested
monthly. Dividends and capital gains distributions of the remaining Portfolios
are typically declared and reinvested annually. Dividends and distributions of
the Fund are recorded on the ex-date and are generally paid to and reinvested by
the Annuity Account on the next business day after the ex-date. Dividends are
not declared by the Annuity Account, since the increase in the value of the
underlying investment in the Fund is reflected daily in the unit price used to
calculate the equity value within the Annuity Account. Consequently, a dividend
distribution by the underlying Fund does not change either the unit price or
equity values within the Annuity Account.
NOTE 4 -- SECURITIES TRANSACTIONS
Securities transactions are summarized as follows:
For the period ended June 30, 1998
<TABLE>
<CAPTION>
MONEY MARKET BOND GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C>
Purchase of long-term securities .................... $ 84,915 $ 16,337 $ 64,784
Proceeds from sales of long-term securities ......... 77,888 9,772 33,616
STRATEGIC TOTAL EMERGING
GLOBAL RETURN GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Purchase of long-term securities .................... $ 48,512 $ 29,197 $ 32,263
Proceeds from sales of long-term securities ......... 18,410 6,488 19,214
AGGRESSIVE GROWTH &
GROWTH BALANCED INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Purchase of long-term securities .................... $ 32,495 $ 10,291 $ 19,131
Proceeds from sales of long-term securities ......... 15,306 1,929 6,622
TACTICAL ASSET C.A.S.E. GLOBAL
ALLOCATION GROWTH SECTOR
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Purchase of long-term securities .................... $ 30,267 $ 8,566 $ 1,394
Proceeds from sales of long-term securities ......... 6,563 2,460 1,785
VALUE INTERNATIONAL
EQUITY EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Purchase of long-term securities .................... $ 22,214 $ 6,249 $ 21,273
Proceeds from sales of long-term securities ......... 6,663 742 7,552
THIRD AVENUE REAL ESTATE
VALUE SECURITIES
SUB-ACCOUNT (a) SUB-ACCOUNT (b)
Purchase of long-term securities .................... $ 9,941 $ 583
Proceeds from sales of long-term securities ......... 737 21
<FN>
- ------------
(a) The inception date of this Sub-Account was January 2, 1998.
(b) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
36 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
-----------------------------------------
NOTE 5 -- UNIT ACTIVITY
For the period ended June 30, 1998
<TABLE>
<CAPTION>
MONEY MARKET BOND GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
<S> <C> <C> <C>
Units balance - beginning of year ......... 5,382.8 4,801.7 23,272.2
Units issued .............................. 14,489.8 2,081.5 5,606.3
Units redeemed ............................ 14,035.2 1,568.5 4,342.0
--------- ------- --------
Units balance - end of year ............... 5,837.4 5,314.7 24,536.5
========= ======= ========
STRATEGIC TOTAL EMERGING
GLOBAL RETURN GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Units balance - beginning of year ......... 15,530.7 15,124.3 11,279.6
Units issued .............................. 3,614.4 2,757.0 2,895.8
Units redeemed ............................ 2,521.0 1,654.6 2,366.2
--------- --------- --------
Units balance - end of year ............... 16,624.1 16,226.7 11,809.2
========= ========= ========
AGGRESSIVE GROWTH &
GROWTH BALANCED INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Units balance - beginning of year ......... 9,141.3 3,156.3 2,316.0
Units issued .............................. 2,790.8 1,065.2 1,619.6
Units redeemed ............................ 2,086.9 453.7 898.2
--------- --------- --------
Units balance - end of year ............... 9,845.2 3,767.8 3,037.4
========= ========= ========
TACTICAL ASSET C.A.S.E. GLOBAL
ALLOCATION GROWTH SECTOR
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Units balance - beginning of year ......... 12,633.2 2,618.3 965.0
Units issued .............................. 2,753.6 868.5 174.2
Units redeemed ............................ 1,518.8 523.6 206.2
--------- --------- --------
Units balance - end of year ............... 13,868.0 2,963.2 933.0
========= ========= ========
VALUE INTERNATIONAL
EQUITY EQUITY U.S. EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
Units balance - beginning of year ......... 7,035.1 1,051.0 2,141.4
Units issued .............................. 2,719.4 707.8 2,064.7
Units redeemed ............................ 1,653.8 247.6 983.0
--------- --------- --------
Units balance - end of year ............... 8,100.7 1,511.2 3,223.1
========= ========= ========
THIRD AVENUE REAL ESTATE
VALUE SECURITIES
SUB-ACCOUNT (a) SUB-ACCOUNT (b)
Units balance - beginning of year ......... N/A N/A
Units issued .............................. 1,173.4 60.4
Units redeemed ............................ 259.8 3.7
--------- ---------
Units balance - end of year ............... 913.6 56.7
========= =========
<FN>
- --------------
(a) The inception date of this Sub-Account was January 2, 1998.
(b) The inception date of this Sub-Account was May 1, 1998.
</FN>
</TABLE>
1 9 9 8 S e m i - A n n u a l R e p o r t 37
<PAGE>
WRL SERIES ANNUITY ACCOUNT
BELLWETHER, CONQUEROR, AND CREATOR
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1998
All amounts in thousands
(unaudited)
-----------------------------------------
NOTE 6 -- OTHER MATTERS
At June 30, 1998, the equity accounts included net unrealized appreciation
(depreciation) on investments as follows:
SUB-ACCOUNT
- -----------
Money Market ...................... $ N/A
Bond .............................. 2,641
Growth ............................ 188,833
Global ............................ 120,139
Strategic Total Return ............ 50,861
Emerging Growth ................... 80,481
Aggressive Growth ................. 51,242
Balanced .......................... 4,789
Growth & Income ................... 379
Tactical Asset Allocation ......... 20,576
C.A.S.E. Growth ................... (103)
Global Sector ..................... 490
Value Equity ...................... 14,135
International Equity .............. 1,557
U.S. Equity ....................... 3,324
Third Avenue Value ................ (518)
Real Estate Securities ............ (7)
38 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
This Page Intentially Left Blank
1 9 9 8 S e m i - A n n u a l R e p o r t 39
<PAGE>
This Page Intentially Left Blank
40 W R L S e r i e s A n n u i t y A c c o u n t
<PAGE>
/DIAMOND/
WRL SERIES ANNUITY ACCOUNT
OFFICE OF
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:
PricewaterhouseCoopers LLP
1055 Broadway
Kansas City. MO 64105
<PAGE>
THIS MATERIAL IS FOR CONTRACT
HOLDERS' 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 1998
ACC00002 (8/98)
