<PAGE>
This Page Left Blank Intentionally
1
<PAGE>
================================================================================
Dear Valued Policyholder:
We are pleased to present the Semi-Annual Report of the PFL Endeavor Variable
Annuity Account for the period ending June 30, 1995. This report contains
information on the following subaccounts:
Money Market
Managed Asset Allocation
T. Rowe Price International Stock
Quest For Value Equity
Quest For Value Small Cap
U.S. Government Securities
T. Rowe Price Equity Income
T. Rowe Price Growth Stock
Growth
In addition to the variable annuity report, reports of the underlying mutual
fund portfolios are enclosed. These reports give you insight regarding the
underlying investments in your variable annuity policy.
We are pleased that you have chosen the Endeavor Variable Annuity to be part
of your financial future. We look forward to serving you in the future.
Sincerely,
/s/ William L. Busler
William L. Busler
President
PFL Life Insurance Company
2
<PAGE>
================================================================================
The PFL Endeavor Variable Annuity Account
Balance Sheet
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Managed
Money Asset
Market Allocation
Total Subaccount Subaccount
------------ ------------ ------------
<S> <C> <C> <C>
Assets
Cash:................................................................... $ 131 -- 10
Investments in mutual funds, at current market value:
Endeavor Series Trust - Money Market Portfolio
21,520,328.070 shares (cost $21,520,328)...................... 21,520,328 21,520,328 --
Endeavor Series Trust - Managed Asset Allocation Portfolio
12,013,016.850 shares (cost $169,283,725)..................... 183,078,377 -- 183,078,377
Endeavor Series Trust - T. Rowe Price International Stock Portfolio
7,058,364.175 shares (cost $83,190,835)....................... 80,041,850 -- --
Endeavor Series Trust - Quest for Value Equity Portfolio
3,758,171.478 shares (cost $40,679,921)....................... 48,254,922 -- --
Endeavor Series Trust - Quest for Value Small Cap Portfolio
3,537,481.104 shares (cost $38,745,861)....................... 40,221,161 -- --
Endeavor Series Trust - U.S. Government Securities Portfolio
382,847.513 shares (cost $3,902,837).......................... 4,130,924 -- --
Endeavor Series Trust - T. Rowe Price Equity Income Portfolio
746,232.876 shares (cost $8,005,473).......................... 8,380,195 -- --
Endeavor Series Trust - T. Rowe Price Growth Stock Portfolio
688,781.322 shares (cost $7,836,507).......................... 8,410,020 -- --
WRL Series Fund, Inc. - Growth Portfolio
5,299,015.904 shares (cost $136,930,908)...................... 155,525,730 -- --
------------ ------------ ------------
Total investments in mutual funds.................................. 549,563,507 21,520,328 183,078,377
------------ ------------ ------------
Total Assets....................................................... $549,563,638 21,520,328 183,078,387
============ ============ ============
Liabilities and Contract Owners' Equity
Liabilities:
Contract terminations payable...................................... $ 169 128 --
------------ ------------ ------------
Total Liabilities.................................................. 169 128 --
Contract Owners' Equity:
Deferred annuity contracts terminable by owners (Notes 2 and 5).... 549,563,469 21,520,200 183,078,387
------------ ------------ ------------
$549,563,638 21,520,328 183,078,387
============ ============ ============
</TABLE>
See accompanying Notes to Financial Statements.
3
<PAGE>
================================================================================
The PFL Endeavor Variable Annuity Account
Balance Sheet
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
T. Rowe Price Quest Quest U.S.
International for Value for Value Government
Stock Equity Small Cap Securities
Subaccount Subaccount Subaccount Subaccount
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Assets
Cash:................................................................... 17 -- -- --
Investments in mutual funds, at current market value:
Endeavor Series Trust - Money Market Portfolio
21,520,328.070 shares (cost $21,520,328)...................... -- -- -- --
Endeavor Series Trust - Managed Asset Allocation Portfolio
12,013,016.850 shares (cost $169,283,725)..................... -- -- -- --
Endeavor Series Trust - T. Rowe Price International Stock Portfolio
7,058,364.175 shares (cost $83,190,835)....................... 80,041,850 -- -- --
Endeavor Series Trust - Quest for Value Equity Portfolio
3,758,171.478 shares (cost $40,679,921)....................... -- 48,254,922 -- --
Endeavor Series Trust - Quest for Value Small Cap Portfolio
3,537,481.104 shares (cost $38,745,861)....................... -- -- 40,221,161 --
Endeavor Series Trust - U.S. Government Securities Portfolio
382,847.513 shares (cost $3,902,837).......................... -- -- -- 4,130,924
Endeavor Series Trust - T. Rowe Price Equity Income Portfolio
746,232.876 shares (cost $8,005,473).......................... -- -- -- --
Endeavor Series Trust - T. Rowe Price Growth Stock Portfolio
688,781.322 shares (cost $7,836,507).......................... -- -- -- --
WRL Series Fund, Inc. - Growth Portfolio
5,299,015.904 shares (cost $136,930,908)...................... -- -- -- --
------------ ------------ ------------ ------------
Total investments in mutual funds.................................. 80,041,850 48,254,922 40,221,161 4,130,924
------------ ------------ ------------ ------------
Total Assets....................................................... 80,041,867 48,254,922 40,221,161 4,130,924
============ ============ ============ ============
Liabilities and Contract Owners' Equity
Liabilities:
Contract terminations payable...................................... -- 25 10 --
------------ ------------ ------------ ------------
Total Liabilities.................................................. -- 25 10 --
Contract Owners Equity:
Deferred annuity contracts terminable by owners (Notes 2 and 5).... 80,041,867 48,254,897 40,221,151 4,130,924
------------ ------------ ------------ ------------
80,041,867 48,254,922 40,221,161 4,130,924
============ ============ ============ ============
<CAPTION>
T. Rowe Price T. Rowe Price
Equity Growth
Income Stock Growth
Subaccount Subaccount Subaccount
------------ ------------ ------------
<S> <C> <C> <C>
Assets
Cash:................................................................... 5 -- 99
Investments in mutual funds, at current market value:
Endeavor Series Trust - Money Market Portfolio
21,520,328.070 shares (cost $21,520,328)...................... -- -- --
Endeavor Series Trust - Managed Asset Allocation Portfolio
12,013,016.850 shares (cost $169,283,725)..................... -- -- --
Endeavor Series Trust - T. Rowe Price International Stock Portfolio
7,058,364.175 shares (cost $83,190,835)....................... -- -- --
Endeavor Series Trust - Quest for Value Equity Portfolio
3,758,171.478 shares (cost $40,679,921)....................... -- -- --
Endeavor Series Trust - Quest for Value Small Cap Portfolio
3,537,481.104 shares (cost $38,745,861)....................... -- -- --
Endeavor Series Trust - U.S. Government Securities Portfolio
382,847.513 shares (cost $3,902,837).......................... -- -- --
Endeavor Series Trust - T. Rowe Price Equity Income Portfolio
746,232.876 shares (cost $8,005,473).......................... 8,380,195 -- --
Endeavor Series Trust - T. Rowe Price Growth Stock Portfolio
688,781.322 shares (cost $7,836,507).......................... -- 8,410,020 --
WRL Series Fund, Inc. - Growth Portfolio
5,299,015.904 shares (cost $136,930,908)...................... -- -- 155,525,730
------------ ------------ ------------
Total investments in mutual funds.................................. 8,380,195 8,410,020 155,525,730
------------ ------------ ------------
Total Assets....................................................... 8,380,200 8,410,020 155,525,829
============ ============ ============
Liabilities and Contract Owners' Equity
Liabilities:
Contract terminations payable...................................... -- 6 --
------------ ------------ ------------
Total Liabilities.................................................. -- 6 --
Contract Owners' Equity:
Deferred annuity contracts terminable by owners (Notes 2 and 5).... 8,380,200 8,410,014 155,525,829
------------ ------------ ------------
8,380,200 8,410,020 155,525,829
============ ============ ============
</TABLE>
See accompanying Notes to Financial Statements.
4
<PAGE>
===============================================================================
THE PFL ENDEAVOR VARIABLE ANNUITY ACCOUNT
Statement of Operations
Period Ended June 30, 1995 or Commencement of
Operations to June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Money
Market
Total Subaccount
----------- ----------
<S> <C> <C>
Net Investment Income (Loss)
Income:
Dividends.............................................$ 4,638,857 517,565
Expenses:
Administrative fee (Note 4)........................... 184,854 5,699
Mortality and expense risk charge (Note 4)............ 3,450,700 141,003
----------- ----------
Net investment income (loss)..................... 1,003,303 370,863
----------- ----------
Net Realized and Unrealized Capital Gain From Investments
Net realized capital gain (loss) from sales of investments:
Proceeds from sales................................... 62,461,305 10,324,241
Cost of investments sold.............................. 60,826,409 10,324,241
----------- ----------
1,634,896 --
Capital gain dividends............................... 2,601,739 --
----------- ----------
Net realized capital gain (loss).......................... 4,236,635 --
----------- ----------
Net change in unrealized appreciation
(depreciation) of investments:
Beginning of period.................................. (19,759,305) --
End of period........................................ 39,467,114 --
----------- ----------
Net change in unrealized
appreciation (depreciation) of
investments.................................... 59,226,419 --
----------- ----------
Net realized and unrealized capital
gain from investments.......................... 63,463,054 --
----------- ----------
Increase From Operations.................................. $ 64,466,357 370,863
=========== ==========
</TABLE>
/1/ Period from January 3, 1995 (commencement of operations) to June 30, 1995
See accompanying Notes to Financial Statements.
5
<PAGE>
================================================================================
THE PFL ENDEAVOR VARIABLE ANNUITY ACCOUNT
Statement of Operations
Period Ended June 30, 1995 or Commencement of
Operations to June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Managed T. Rowe Price Quest Quest
Asset International for Value for Value
Allocation Stock Equity Small Cap
Subaccount Subaccount Subaccount Subaccount
---------- ------------- ---------- ----------
<S> <C> <C> <C> <C>
Net Investment Income (Loss)
Income:
Dividends....................................................... 3,061,224 -- 301,634 318,436
Expenses:
Administrative fee (Note 4)..................................... 63,016 30,804 11,511 12,895
Mortality and expense risk charge (Note 4)...................... 1,205,829 550,708 264,886 249,612
---------- ---------- --------- ---------
Net investment income (loss)............................... 1,792,379 (581,512) 25,237 55,929
---------- ---------- --------- --------
Net Realized and Unrealized Capital Gain From Investments
Net realized capital gain (loss) from sales of investments
Proceeds from sales............................................. 20,856,649 11,221,982 2,894,330 4,228,837
Cost of investments sold........................................ 19,647,170 11,202,472 2,591,461 4,239,492
---------- ---------- --------- ---------
1,209,479 19,510 302,869 (10,655)
Capital gain dividends.......................................... -- 1,893,900 136,957 570,882
---------- ---------- --------- --------
Net realized capital gain (loss).................................... 1,209,479 1,913,410 439,826 560,227
---------- ---------- --------- ---------
Net change in unrealized appreciation
(depreciation) of investments:
Beginning of period............................................ (6,470,369) (3,433,341) 812,987 98,422
End of period.................................................. 13,794,652 (3,148,985) 7,575,001 1,475,300
---------- ---------- --------- ---------
Net change in unrealized
appreciation (depreciation) of
investments............................................... 20,265,021 284,356 6,762,014 1,376,878
---------- ---------- --------- ---------
Net realized and unrealized capital
gain from investments..................................... 21,474,500 2,197,766 7,201,840 1,937,105
---------- ---------- --------- ---------
Increase From Operations............................................ 23,266,879 1,616,254 7,227,077 1,993,034
========== ========== ========= =========
</TABLE>
<TABLE>
U.S. T. Rowe Price T. Rowe Price
Government Equity Growth
Securities Income Stock Growth
Subaccount Subaccount/1/ Subaccount/1/ Subaccount
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net Investment Income (Loss)
Income:
Dividends....................................................... 41,525 740 575 397,158
Expenses:
Administrative fee (Note 4)..................................... 848 832 605 58,644
Mortality and expense risk charge (Note 4)...................... 25,007 24,606 23,722 965,327
--------- ------- ------- ----------
Net investment income (loss)............................... 15,670 (24,698) (23,752) (626,813)
--------- -------- -------- ----------
Net Realized and Unrealized Capital Gain From Investments
Net realized capital gain (loss) from sales of investments
Proceeds from sales............................................ 1,428,267 1,052,777 1,330,061 9,124,161
Cost of investments sold....................................... 1,374,192 1,015,388 1,254,789 9,177,204
--------- --------- --------- ----------
54,075 37,389 75,272 (53,043)
Capital gain dividends.......................................... -- -- -- --
--------- --------- --------- ----------
Net realized capital gain (loss).................................... 54,075 37,389 75,272 (53,043)
--------- --------- --------- ----------
Net change in unrealized appreciation
(depreciation) of investments:
Beginning of period............................................ (5,607) -- -- (10,761,397)
End of period.................................................. 228,088 374,723 573,513 18,594,822
--------- --------- --------- ----------
Net change in unrealized
appreciation (depreciation) of
investments............................................... 233,695 374,723 573,513 29,356,219
--------- --------- --------- ----------
Net realized and unrealized capital
gain from investments..................................... 287,770 412,112 648,785 29,303,176
--------- --------- --------- ----------
Increase From Operations............................................ 303,440 387,414 625,033 26,676,363
========= ========== ========= ==========
</TABLE>
/1/ Period from January 3, 1995 (commencement of operations) to June 30, 1995
See accompanying Notes to Financial Statements.
6
<PAGE>
===============================================================================
The PFL Endeavor Variable Annuity Account
Statements of Changes in Contract Owners' Equity
Six Months Ended June 30, 1995 or Commencement of Operations to June 30, 1995
and Year Ended December 31, 1994 or Commencement of Operations to December 31,
1994 (Unaudited)
<TABLE>
<CAPTION>
Managed T. Rowe Price
Money Asset International
Market Allocation Stock
Total Subaccount Subaccount Subaccount
-------------------------- ------------------------ ------------------------ -----------------------
1995 1994 1995 1994 1995 1994 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operations
Net investment income (loss).. $1,003,303 (3,274,517) 370,863 465,670 1,792,379 (1,488,243) (581,512) (1,109,593)
Net realized capital gain
(loss)...................... 4,236,635 2,419,866 -- -- 1,209,479 1,977,991 1,913,410 977,924
Net change in unrealized
appreciation (depreciation)
of investments.............. 59,226,419 (29,172,129) -- -- 20,265,021 (11,852,634) 284,356 (6,194,482)
------------ ----------- ---------- ---------- ----------- ----------- ---------- ----------
Increase (decrease) from
operations.................. 64,466,357 (30,026,780) 370,863 465,670 23,266,879 (11,362,886) 1,616,254 (6,326,151)
------------ ----------- ---------- ---------- ----------- ----------- ---------- ----------
Contract Transactions
Net contract purchase
payments.................... 32,625,310 234,302,912 2,295,853 23,014,906 5,430,680 89,871,864 4,230,520 36,258,430
Transfers between funds....... 0 -- 3,958,837 (2,201,349) (8,718,585) 441,178 (5,521,592) 937,439
Transfers (to) from general
account..................... (2,231,256) 6,082,359 (2,407,123) (3,346,951) (2,468,897) 2,115,472 41,952 1,776,331
Contract terminations,
withdrawals, and other
deductions.................. (15,194,289) (29,167,293) (1,826,885) (11,622,320) (4,833,162) (7,166,325) (2,502,433) (3,168,882)
------------ ----------- ---------- ---------- ----------- ----------- ---------- ----------
Increase (decrease) from
contract transactions....... 15,199,765 211,217,978 2,020,682 5,844,286 (10,589,964) 85,262,189 (3,751,553) 35,803,318
------------ ----------- ---------- ---------- ----------- ----------- ---------- ----------
Net increase (decrease) in
contract owners equity...... 79,666,122 181,191,198 2,391,545 6,309,956 12,676,915 73,899,303 (2,135,299) 29,477,167
------------ ----------- ---------- ---------- ----------- ----------- ---------- ----------
Contract Owners' Equity
Beginning of period........... 469,897,347 288,706,149 19,128,655 12,818,699 170,401,472 96,502,169 82,177,166 52,699,999
------------ ----------- ---------- ---------- ----------- ----------- ---------- ----------
End of period................. $549,563,469 469,897,347 21,520,200 19,128,655 183,078,387 170,401,472 80,041,867 82,177,166
============ =========== ========== ========== =========== =========== ========== ==========
</TABLE>
/1/ Period from May 9, 1994 (commencement of operations) to December 31, 1994
/2/ Period from January 3, 1995 (commencement of operations) to June 30, 1995
See accompanying Notes to Financial Statements.
7
<PAGE>
<TABLE>
<CAPTION>
Quest Quest U.S.
for Value for Value Government
Equity Small Cap Securities
Subaccount Subaccount Subaccount
------------------------ ----------------------- ---------------------
1995 1994 1995 1994 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income (loss).. 25,237 (318,537) 55,929 (377,316) 15,670 (16,068)
Net realized capital gain
(loss)...................... 439,826 123,433 560,227 87,357 54,075 (1,629)
Net change in unrealized
appreciation (depreciation)
of investments.............. 6,762,014 701,663 1,376,878 (337,832) 233,695 (5,607)
---------- ---------- ---------- ---------- --------- ---------
Increase (decrease) from
operations.................. 7,227,077 506,559 1,993,034 (627,791) 303,440 (23,304)
---------- ---------- ---------- ---------- --------- ---------
Contract Transactions
Net contract purchase
payments.................... 5,015,571 17,773,676 3,759,333 20,426,242 725,476 1,474,717
Transfers between funds....... 3,792,897 1,897,752 (650,129) 1,976,528 188,325 1,559,949
Transfers (to) from general
account..................... 1,361,808 1,495,294 1,145,901 1,381,963 (67,653) 70,947
Contract terminations,
withdrawals, and other
deductions.................. (1,046,350) (931,795) (1,012,749) (854,836) (77,287) (23,686)
---------- ---------- ---------- ---------- --------- ---------
Increase (decrease) from
contract transactions....... 9,123,926 20,234,927 3,242,356 22,929,897 768,861 3,081,927
---------- ---------- ---------- ---------- --------- ---------
Net increase (decrease) in
contract owners equity...... 16,351,003 20,741,486 5,235,390 22,302,106 1,072,301 3,058,623
---------- ---------- ---------- ---------- --------- ---------
Contract Owners' Equity
Beginning of period........... 31,903,894 11,162,408 34,985,761 12,683,655 3,058,623 --
---------- ---------- ---------- ---------- --------- ---------
End of period................. 48,254,897 31,903,894 40,221,151 34,985,761 4,130,924 3,058,623
========== ========== ========== ========== ========= =========
</TABLE>
<TABLE>
<CAPTION>
T. Rowe Price T. Rowe Price
Equity Growth
Income Stock Growth
Subaccount Subaccount Subaccount
------------- ------------- ------------------------
1995/2/ 1995/1/ 1995 1994
<S> <C> <C> <C> <C>
Operations
Net investment income (loss).. (24,698) (23,752) (626,813) (430,430)
Net realized capital gain
(loss)...................... 37,389 75,272 (53,043) (745,210)
Net change in unrealized
appreciation (depreciation)
of investments.............. 374,723 573,513 29,356,219 (11,483,237)
--------- ---------- ----------- -----------
Increase (decrease) from
operations.................. 387,414 625,033 28,676,363 (12,658,877)
--------- ---------- ----------- -----------
Contract Transactions
Net contract purchase
payments.................... 2,855,267 2,281,869 6,030,741 45,483,077
Transfers between funds....... 4,887,779 5,265,406 (3,202,938) (4,611,497)
Transfers (to) from general
account..................... 302,498 264,179 (403,921) 2,589,303
Contract terminations,
withdrawals, and other
deductions.................. (52,758) (26,473) (3,816,192) (5,399,449)
--------- ---------- ----------- -----------
Increase (decrease) from
contract transactions....... 7,992,786 7,784,981 (1,392,310) 38,061,434
--------- ---------- ----------- -----------
Net increase (decrease) in
contract owners equity...... 8,380,200 8,410,014 27,284,053 25,402,557
--------- ---------- ----------- -----------
Contract Owners' Equity
Beginning of period........... -- -- 128,241,776 102,839,219
--------- ---------- ----------- -----------
End of period................. 8,380,200 8,410,014 155,525,829 128,241,776
========= ========== =========== ===========
</TABLE>
See accompanying Notes to Financial Statements.
8
<PAGE>
===============================================================================
The PFL Endeavor Variable Annuity Account
Notes to Financial Statements
June 30, 1995 (Unaudited)
1. Organization and Summary of Significant Accounting Policies
Organization -- The PFL Endeavor Variable Annuity Account ("Mutual Fund
Account") is a segregated investment account of PFL Life Insurance Company ("PFL
Life"), an indirect, wholly-owned subsidiary of AEGON USA, Inc. ("AUSA"), a
holding company. AUSA is an indirect, wholly-owned subsidiary of AEGON nv, a
holding company organized under the laws of The Netherlands.
The T. Rowe Price Equity Income Portfolio and the T. Rowe Price Growth Stock
Portfolio, as part of the Mutual Fund Account, commenced operations on January
3, 1995. The U.S. Government Securities Portfolio of the Endeavor Series
Trust, as part of the Mutual Fund Account, commenced operations on May 9,
1994. The Quest for Value Equity and the Quest for Value Small Cap Portfolios
of the Endeavor Series Trust, as part of the Mutual Fund Account, commenced
operations May 3, 1993. The investment advisor of the Endeavor Series Trust is
Endeavor Investment Advisors, a general partnership between Endeavor
Management Co. and AUSA Financial Markets, Inc., an affiliate of PFL Life. The
investment adviser for the WRL Series Fund, Inc. is Western Reserve Life
Assurance Co. of Ohio, an affiliate of PFL Life.
The Mutual Fund Account is registered with the Securities and Exchange
Commission as a Unit Investment Trust pursuant to provisions of the Investment
Company Act of 1940.
Investments -- Net purchase payments received by the Mutual Fund Account are
invested in the portfolios of the Endeavor Series Trust, and the Growth
Portfolio of the WRL Series Fund, Inc. (collectively the "Series Funds"), as
selected by the contract owner. Investments are stated at the closing net
asset values per share on June 30, 1995.
Realized capital gains and losses from sale of shares in the Series Funds are
determined on the first-in, first-out basis. Investment transactions are
accounted for on the trade date (date the order to buy or sell is executed)
and dividend income is recorded on the ex-dividend date. Unrealized gains or
losses from investments in the Series Funds are credited or charged to
contract owners equity.
Dividend Income -- Dividends received from the Series Funds investments are
reinvested to purchase additional mutual fund shares.
9
<PAGE>
2. Contract Owners' Equity
Contract owners' equity includes an amount of $2,194,312, which represents the
current value of PFL Life's capital contribution of $1,900,000. A summary of
deferred annuity contracts terminable by owners at June 30, 1995 follows:
<TABLE>
<CAPTION>
Accumulation
Accumulation Unit Total
Subaccount Units Owned Value Contract Value
------------ ---------------- -------------- ----------------
<S> <C> <C> <C>
Money Market ........................ 19,666,908.798 $1.094234 $21,520,200
Managed Asset Allocation ............ 123,090,236.829 1.487351 183,078,387
T. Rowe Price International Stock ... 72,967,386.696 1.096954 80,041,867
Quest for Value Equity .............. 38,266,013.525 1.261038 48,254,897
Quest for Value Small Cap ........... 35,571,651.209 1.130708 40,221,151
U.S. Government Securities .......... 3,851,771.114 1.072474 4,130,924
T. Rowe Price Equity Income ......... 7,513,051.029 1.115419 8,380,200
T. Rowe Price Growth Stock .......... 6,934,566.856 1.212767 8,410,014
Growth .............................. 12,606,731.394 12.336729 155,525,829
-------------
$549,563,469
=============
</TABLE>
A summary of changes in contract owners account units follows:
<TABLE>
<CAPTION>
T. Rowe U.S. T. Rowe T. Rowe
Managed Price Quest Quest Government Price Price
Money Asset International for Value for Value Securities Equity Growth
Market Allocation Stock Equity Small Cap Portfolio Income Stock Growth
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Units outstanding
at 1/1/94....... 12,190,858 69,252,243 45,569,234 10,958,837 11,449,957 -- -- -- 9,252,403
Units purchased... 21,768,210 65,293,446 31,452,554 17,192,747 18,848,853 1,486,305 -- -- 4,241,096
Units redeemed
and transferred. (16,122,228) (3,635,702) (503,744) 2,360,647 2,308,538 1,616,367 -- -- (734,541)
----------- ----------- ----------- ---------- ---------- --------- --------- --------- ----------
Units outstanding
at 12/31/94..... 17,836,840 130,909,987 76,518,044 30,512,231 32,607,348 3,102,672 -- -- 12,758,958
Units purchased... 2,120,411 3,953,844 3,947,324 4,269,327 3,462,968 700,089 2,636,148 1,987,268 544,091
Units redeemed
and transferred. (290,342) (11,773,594) (7,497,981) 3,484,456 (498,665) 49,010 4,876,903 4,947,299 (696,318)
----------- ----------- ----------- ---------- ---------- --------- ---------- --------- ----------
Units outstanding
at 6/30/95...... 19,666,908 123,090,237 72,967,387 38,266,014 35,571,651 3,851,771 7,513,051 6,934,567 12,606,731
========== =========== ========== ========== ========== ========= =========== ========= ==========
</TABLE>
3. Taxes
Operations of the Mutual Fund Account form a part of PFL Life, which is taxed
as a life insurance company under Subchapter L of the Internal Revenue Code of
1986, as amended (the "Code"). The operations of the Mutual Fund Account are
accounted for separately from other operations of PFL Life for purposes of
federal income taxation. The Mutual Fund Account is not separately taxable as
a regulated investment company under Subchapter M of the Code and is not
otherwise taxable as an entity separate from PFL Life. Under existing federal
income tax laws, the income of the Mutual Fund Account, to the extent applied
to increase reserves under the variable annuity contracts, is not taxable to
PFL Life.
10
<PAGE>
4. Administrative, Mortality and Expense Risk Charge
Administrative charges include an annual charge of $35 per contract which will
commence on the first policy anniversary of each contract owners account.
Charges for administrative fees to the variable annuity contracts are an
expense of the Mutual Fund Account.
PFL Life deducts a daily charge equal to an annual rate of 1.25% of the value
of the contract owners individual account as a charge for assuming certain
mortality and expense risks. PFL Life also deducts a daily charge equal to an
annual rate of .15% of the contract owners individual account for
administrative expenses.
5. Net Assets
At June 30, 1995 contract owners' equity was comprised of:
<TABLE>
<CAPTION>
T. Rowe Quest Quest
Managed Price for for
Money Asset International Value Value
Market Allocation Stock Equity Small Cap
Total Subacct. Subacct. Subacct. Subacct. Subacct.
---------- ----------- ---------- ------------ ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Unit transactions, accumulated
net investment income and
realized capital gains ................. $ 510,096,524 21,520,200 169,283,735 83,190,852 40,679,896 38,745,851
Adjustment for appreciation
(depreciation) to market value ......... 39,467,114 -- 13,794,652 (3,148,985) 7,575,001 1,475,300
------------ ----------- ----------- ---------- ----------- ----------
Total Contract Owners Equity ............. $ 549,563,469 21,520,200 183,078,387 80,041,867 48,254,897 40,221,151
============ =========== =========== ========== =========== ==========
<CAPTION>
T. Rowe T. Rowe
U.S. Price Price
Government Equity Growth
Securities Income Stock Growth
Subacct. Subacct. Subacct. Subacct.
------------ ---------- ---------- ----------
<S> <C> <C> <C> <C>
Unit transactions, accumulated
net investment income and
realized capital gains ................. 3,902,836 8,005,477 7,836,501 136,931,007
Adjustment for appreciation
(depreciation) to market value ......... 228,088 374,723 573,513 18,594,822
---------- ---------- ---------- -----------
Total Contract Owners Equity ............. 4,130,924 8,380,200 8,410,014 155,525,829
=========== ========== ========== ===========
</TABLE>
6. Purchases and Sales of Investment Securities
The aggregate cost of purchases and proceeds from sales of investments were as
follows:
<TABLE>
<CAPTION>
Period Ended June 30, 1995 or Commencement of Operations to June 30, 1995
and Year Ended December 31, 1994 or Commencement of Operations to December 31, 1994
------------------------------------------------------------------------------------
1995 1994
Purchases Sales Purchases Sales
----------- --------- ----------- ----------
<S> <C> <C> <C> <C>
Endeavor Series Trust
Money Market Portfolio ........................ $ 12,684,247 10,324,241 43,579,370 37,253,502
Managed Asset Allocation Portfolio ........... 11,900,445 20,856,649 103,215,961 19,396,350
T. Rowe Price International Stock Portfolio ... 8,707,466 11,221,982 43,503,521 8,786,625
Quest for Value Equity Portfolio .............. 12,159,570 2,894,330 22,790,075 2,862,770
Quest for Value Small Cap Portfolio ........... 8,074,353 4,228,837 26,582,382 4,018,338
U.S. Government Securities Portfolio .......... 2,209,802 1,428,267 3,471,600 402,745
T. Rowe Price Equity Income Portfolio ......... 9,020,860 1,052,777 -- --
T. Rowe Price Growth Stock Portfolio .......... 9,091,296 1,330,061 -- --
WRL Series Fund, Inc.
Growth Portfolio .............................. 7,009,854 9,124,161 47,107,997 9,507,090
------------ ----------- ----------- ----------
$ 80,857,893 62,461,305 290,250,906 82,227,420
============ =========== =========== ==========
</TABLE>
11
<PAGE>
This Page Left Blank Intentionally
12
<PAGE>
This Page Left Blank Intentionally
13
<PAGE>
This Page Left Blank Intentionally
14
<PAGE>
2314 795
TXS900
<PAGE>
================================================================================
Endeavor Variable Annuity
The PFL Endeavor
Variable Annuity Account
Semi-Annual Report
June 30, 1995
[LOGO OF PFL LIFE APPEARS HERE]
