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ENDEAVOR PLATINUM
VARIABLE ANNUITY
The PFL Endeavor Platinum
Variable Annuity Account
Semi-Annual Report
June 30, 1996
[LOGO OF PFL ENDEAVOR PLATINUM APPEARS HERE]
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2
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Dear Valued Policyholder:
We are pleased to present the Semi-Annual Report of the PFL Endeavor Platinum
Variable Annuity Account for the period ending June 30, 1996. 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 Platinum 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
3
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THE PFL ENDEAVOR PLATINUM VARIABLE ANNUITY ACCOUNT
BALANCE SHEET
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
MANAGED
MONEY ASSET
MARKET ALLOCATION
TOTAL SUBACCOUNT SUBACCOUNT
----------- ---------- ----------
<S> <C> <C> <C>
ASSETS
Cash........................................ $ 2,882 -- --
Investments in mutual funds, at current
market value (Note 2):
Endeavor Series Trust--Money Market
Portfolio................................. 5,863,053 5,863,053 --
Endeavor Series Trust--Managed Asset
Allocation Portfolio...................... 7,456,041 -- 7,456,041
Endeavor Series Trust--T. Rowe Price
International Stock Portfolio............. 6,727,777 -- --
Endeavor Series Trust--Quest for Value
Equity Portfolio.......................... 9,049,587 -- --
Endeavor Series Trust--Quest for Value
Small Cap Portfolio....................... 4,932,785 -- --
Endeavor Series Trust--U.S. Government
Securities Portfolio...................... 4,261,669 -- --
Endeavor Series Trust--T. Rowe Price Equity
Income Portfolio.......................... 6,233,234 -- --
Endeavor Series Trust--T. Rowe Price Growth
Stock Portfolio........................... 6,136,951 -- --
WRL Series Fund, Inc.--Growth Portfolio.... 13,204,021 -- --
----------- --------- ---------
Total investments in mutual funds.......... 63,865,118 5,863,053 7,456,041
----------- --------- ---------
Total Assets............................... $63,868,000 5,863,053 7,456,041
=========== ========= =========
LIABILITIES AND CONTRACT OWNERS' EQUITY
Liabilities:
Contract terminations payable.............. $ 4,729 517 670
----------- --------- ---------
Total Liabilities ......................... 4,729 517 670
Contract Owners' Equity:
Deferred annuity contracts terminable by
owners (Notes 3 and 6).................... 63,863,271 5,862,536 7,455,371
----------- --------- ---------
$63,868,000 5,863,053 7,456,041
=========== ========= =========
</TABLE>
See accompanying Notes to Financial Statements.
4
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<TABLE>
<CAPTION>
T. ROWE PRICE QUEST QUEST U.S. T. ROWE PRICE
INTERNATIONAL FOR VALUE FOR VALUE GOVERNMENT T. ROWE PRICE GROWTH
STOCK EQUITY SMALL CAP SECURITIES EQUITY INCOME STOCK GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- ---------- ------------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
-- 720 2,162 -- -- -- --
-- -- -- -- -- -- --
6,727,777 -- -- -- -- -- --
-- 9,049,587 -- -- -- -- --
-- -- 4,932,785 -- -- -- --
-- -- -- 4,261,669 -- -- --
-- -- -- -- 6,233,234 -- --
-- -- -- -- -- 6,136,951 --
-- -- -- -- -- -- 13,204,021
--------- --------- --------- --------- --------- --------- ----------
6,727,777 9,049,587 4,932,785 4,261,669 6,233,234 6,136,951 13,204,021
--------- --------- --------- --------- --------- --------- ----------
6,727,777 9,050,307 4,934,947 4,261,669 6,233,234 6,136,951 13,204,021
========= ========= ========= ========= ========= ========= ==========
531 -- -- 142 312 375 2,182
--------- --------- --------- --------- --------- --------- ----------
531 -- -- 142 312 375 2,182
6,727,246 9,050,307 4,934,947 4,261,527 6,232,922 6,136,576 13,201,839
--------- --------- --------- --------- --------- --------- ----------
6,727,777 9,050,307 4,934,947 4,261,669 6,233,234 6,136,951 13,204,021
========= ========= ========= ========= ========= ========= ==========
</TABLE>
5
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THE PFL ENDEAVOR PLATINUM VARIABLE ANNUITY ACCOUNT
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
MONEY
MARKET
TOTAL SUBACCOUNT
---------- ----------
<S> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends............................................... $ 970,492 116,839
Expenses (Note 5):
Administrative fee...................................... 4,132 343
Mortality and expense risk charge....................... 382,859 40,217
---------- ---------
Net investment income (loss).......................... 583,501 76,279
---------- ---------
NET REALIZED AND UNREALIZED CAPITAL GAIN (LOSS) FROM
INVESTMENTS
Net realized capital gain from sales of investments:
Proceeds from sales..................................... 5,650,899 2,502,565
Cost of investments sold................................ 5,196,188 2,502,565
---------- ---------
Net realized capital gain from sales of investments...... 454,711 --
---------- ---------
Net change in unrealized appreciation/depreciation of
investments:
Beginning of the period................................. 2,391,915 --
End of the period....................................... 4,702,931 --
---------- ---------
Net change in unrealized appreciation/depreciation of
investments.......................................... 2,311,016 --
---------- ---------
Net realized and unrealized capital gain (loss) from
investments.......................................... 2,765,727 --
---------- ---------
INCREASE (DECREASE) FROM OPERATIONS...................... $3,349,228 76,279
========== =========
</TABLE>
See accompanying Notes to Financial Statements.
6
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<TABLE>
<CAPTION>
MANAGED T. ROWE PRICE QUEST QUEST U.S. T. ROWE PRICE
ASSET INTERNATIONAL FOR VALUE FOR VALUE GOVERNMENT T. ROWE PRICE GROWTH
ALLOCATION STOCK EQUITY SMALL CAP SECURITIES EQUITY INCOME STOCK GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ---------- ---------- ---------- ------------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
123,229 40,527 197,629 206,983 112,303 57,215 95,737 20,030
441 536 488 534 452 371 228 739
48,567 42,344 48,835 31,990 29,332 35,620 32,173 73,781
------- ------- ------- ------- --------- ------- ------- ---------
74,221 (2,353) 148,306 174,459 82,519 21,224 63,336 (54,490)
------- ------- ------- ------- --------- ------- ------- ---------
460,828 330,952 328,595 243,361 1,123,149 118,900 158,785 383,764
364,830 310,306 231,827 208,576 1,089,025 89,454 114,690 284,915
------- ------- ------- ------- --------- ------- ------- ---------
95,998 20,646 96,768 34,785 34,124 29,446 44,095 98,849
------- ------- ------- ------- --------- ------- ------- ---------
336,197 187,288 455,486 220,590 127,706 223,319 178,431 662,898
616,037 580,444 720,877 303,612 (101,304) 445,253 320,389 1,817,623
------- ------- ------- ------- --------- ------- ------- ---------
279,840 393,156 265,391 83,022 (229,010) 221,934 141,958 1,154,725
------- ------- ------- ------- --------- ------- ------- ---------
375,838 413,802 362,159 117,807 (194,886) 251,380 186,053 1,253,574
------- ------- ------- ------- --------- ------- ------- ---------
450,059 411,449 510,465 292,266 (112,367) 272,604 249,389 1,199,084
======= ======= ======= ======= ========= ======= ======= =========
</TABLE>
7
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THE PFL ENDEAVOR PLATINUM VARIABLE ANNUITY ACCOUNT
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
Six Months Ended June 30, 1996 and Year Ended December 31, 1995, Except as
Noted (Unaudited)
<TABLE>
<CAPTION>
MANAGED T. ROWE PRICE
MONEY ASSET INTERNATIONAL
MARKET ALLOCATION STOCK
TOTAL SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------- ---------------------- -------------------- --------------------
1996 1995 1996 1995 1996 1995 1996 1995
----------- ---------- ---------- ---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment
income (loss).. $ 583,501 562,183 76,279 91,776 74,221 (8,359) (2,353) 9,699
Net realized
capital gain
(loss)......... 454,711 292,937 -- -- 95,998 59,673 20,646 (11,060)
Net change in
unrealized
appreciation/
depreciation of
investments.... 2,311,016 2,491,222 -- -- 279,840 346,688 393,156 258,720
----------- ---------- ---------- ---------- --------- --------- --------- ---------
Increase
(decrease) from
operations..... 3,349,228 3,346,342 76,279 91,776 450,059 398,002 411,449 257,359
----------- ---------- ---------- ---------- --------- --------- --------- ---------
CONTRACT
TRANSACTIONS
Net contract
purchase
payments....... 29,785,435 21,662,505 4,819,606 4,526,586 2,845,799 1,883,952 2,073,673 1,936,013
Transfer
payments from
(to) other
subaccounts.... 18,873 263,239 (2,612,674) (1,773,778) 315,232 444,020 743,895 315,158
Contract
terminations,
withdrawals,
and other
deductions..... (820,330) (1,557,372) (123,911) (686,618) (81,364) (103,076) (189,889) (178,543)
----------- ---------- ---------- ---------- --------- --------- --------- ---------
Increase from
contract
transactions... 28,983,978 20,368,372 2,083,021 2,066,190 3,079,667 2,224,896 2,627,679 2,072,628
----------- ---------- ---------- ---------- --------- --------- --------- ---------
New increase in
contract
owners'
equity......... 32,333,206 23,714,714 2,159,300 2,157,966 3,529,726 2,622,898 3,039,128 2,329,987
----------- ---------- ---------- ---------- --------- --------- --------- ---------
CONTRACT OWNERS'
EQUITY
Beginning of
period......... 31,530,065 7,815,351 3,703,236 1,545,270 3,925,645 1,302,747 3,688,118 1,358,131
----------- ---------- ---------- ---------- --------- --------- --------- ---------
End of period... $63,863,271 31,530,065 5,862,536 3,703,236 7,455,371 3,925,645 6,727,246 3,688,118
=========== ========== ========== ========== ========= ========= ========= =========
<CAPTION>
QUEST
FOR VALUE
EQUITY
SUBACCOUNT
---------------------
1996 1995
---------- ----------
<S> <C> <C>
OPERATIONS
Net investment
income (loss).. 148,306 (17,648)
Net realized
capital gain
(loss)......... 96,768 42,935
Net change in
unrealized
appreciation/
depreciation of
investments.... 265,391 455,646
---------- ----------
Increase
(decrease) from
operations..... 510,465 480,933
---------- ----------
CONTRACT
TRANSACTIONS
Net contract
purchase
payments....... 4,204,722 1,938,053
Transfer
payments from
(to) other
subaccounts.... 664,092 735,365
Contract
terminations,
withdrawals,
and other
deductions..... (80,749) (149,466)
---------- ----------
Increase from
contract
transactions... 4,788,065 2,523,952
---------- ----------
New increase in
contract
owners'
equity......... 5,298,530 3,004,885
---------- ----------
CONTRACT OWNERS'
EQUITY
Beginning of
period......... 3,751,777 746,892
---------- ----------
End of period... 9,050,307 3,751,777
========== ==========
</TABLE>
/1/Period from January 20, 1995 (commencement of operations) to December 31,
1995
/2/Period from January 5, 1995 (commencement of operations) to December 31,
1995
See accompanying Notes to Financial Statements.
8
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<TABLE>
<CAPTION>
QUEST U.S. T. ROWE PRICE T. ROWE PRICE
FOR VALUE GOVERNMENT EQUITY GROWTH
SMALL CAP SECURITIES INCOME STOCK GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------- --------------------- -------------------- -------------------- ---------------------
1996 1995 1996 1995 1996 1995/1/ 1996 1995/2/ 1996 1995
--------- --------- ---------- --------- --------- --------- --------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
174,459 4,619 82,519 (15,291) 21,224 (11,349) 63,336 (10,228) (54,490) 518,964
34,785 7,989 34,124 86,546 29,446 6,240 44,095 13,014 98,849 87,600
83,022 210,301 (229,010) 128,530 221,934 223,319 141,958 178,431 1,154,725 689,587
--------- --------- ---------- --------- --------- --------- --------- --------- ---------- ---------
292,266 222,909 (112,367) 199,785 272,604 218,210 249,389 181,217 1,199,084 1,296,151
--------- --------- ---------- --------- --------- --------- --------- --------- ---------- ---------
1,483,206 1,954,060 2,681,624 3,283,653 2,937,057 1,621,945 3,318,865 1,584,777 5,420,883 2,933,466
336,849 135,312 (1,214,908) (883,538) 763,059 459,377 412,177 444,858 611,151 386,465
(83,226) (82,679) (70,103) (66,486) (33,346) (5,984) (20,122) (34,585) (137,620) (249,935)
--------- --------- ---------- --------- --------- --------- --------- --------- ---------- ---------
1,736,829 2,006,693 1,396,613 2,333,629 3,666,770 2,075,338 3,710,920 1,995,050 5,894,414 3,069,996
--------- --------- ---------- --------- --------- --------- --------- --------- ---------- ---------
2,029,095 2,229,602 1,284,246 2,533,414 3,939,374 2,293,548 3,960,309 2,176,267 7,093,498 4,366,147
--------- --------- ---------- --------- --------- --------- --------- --------- ---------- ---------
2,905,852 676,250 2,977,281 443,867 2,293,548 -- 2,176,267 -- 6,108,341 1,742,194
--------- --------- ---------- --------- --------- --------- --------- --------- ---------- ---------
4,934,947 2,905,852 4,261,527 2,977,281 6,232,922 2,293,548 6,136,576 2,176,267 13,201,839 6,108,341
========= ========= ========== ========= ========= ========= ========= ========= ========== =========
</TABLE>
9
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THE PFL ENDEAVOR PLATINUM VARIABLE ANNUITY ACCOUNT
NOTES TO FINANCIAL STATEMENTS
June 30, 1996 (Unaudited)
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization -- The PFL Endeavor Platinum 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 Subaccount commenced operations on January 20,
1995. The T. Rowe Price Growth Stock Subaccount commenced operations on January
5, 1995. All other subaccounts commenced operations on July 5, 1994. Effective
March 24, 1995, the names of the Global Growth Portfolio and Global Growth
Subaccount were changed to T. Rowe Price International Stock Portfolio and T.
Rowe Price International Stock Subaccount, respectively. The investment
objective of the portfolio was changed from investment on a global basis to
investment on an international basis (i.e. in non-U.S. companies). 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, 1996.
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.
2. INVESTMENTS
A summary of the mutual fund investment at June 30, 1996 follows:
<TABLE>
<CAPTION>
NUMBER NET ASSET
OF SHARES VALUE MARKET
HELD PER SHARE VALUE COST
------------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Endeavor Series Trust
Money Market Portfolio.......... 5,863,053.260 1.00 5,863,053 5,863,053
Managed Asset Allocation Portfo-
lio............................ 429,001.214 17.38 7,456,041 6,840,004
T. Rowe Price International
Stock Portfolio................ 507,756.786 13.25 6,727,777 6,147,333
Quest for Value Equity Portfo-
lio............................ 581,967.000 15.55 9,049,587 8,328,710
Quest for Value Small Cap Port-
folio.......................... 387,797.577 12.72 4,932,785 4,629,173
U.S. Government Securities Port-
folio.......................... 396,434.325 10.75 4,261,669 4,362,973
T. Rowe Price Equity Income
Portfolio...................... 447,468.357 13.93 6,233,234 5,787,981
T. Rowe Price Growth Stock Port-
folio.......................... 421,493.896 14.56 6,136,951 5,816,562
WRL Series Fund, Inc.
Growth Portfolio................ 362,490.111 36.425878 13,204,021 11,386,398
---------- ----------
63,865,118 59,162,187
========== ==========
</TABLE>
10
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3. CONTRACT OWNERS' EQUITY
A summary of deferred annuity contracts terminable by owners at June 30, 1996
follows:
<TABLE>
<CAPTION>
ACCUMULATION
ACCUMULATION UNIT TOTAL
SUBACCOUNT UNITS OWNED VALUE CONTRACT VALUE
- ---------- ------------- ------------ --------------
<S> <C> <C> <C>
Money Market......................... 5,480,066.221 1.069793 5,862,536
Managed Asset Allocation............. 5,837,296.075 1.277196 7,455,371
T. Rowe Price International Stock.... 6,060,134.127 1.110082 6,727,246
Quest for Value Equity............... 6,103,348.189 1.482843 9,050,307
Quest for Value small Cap............ 4,056,919.633 1.216427 4,934,947
U.S. Government Securities........... 3,932,752.519 1.083599 4,261,527
T. Rowe Price Equity Income.......... 4,539,207.581 1.373130 6,232,922
T. Rowe Price Growth Stock........... 4,245,616.276 1.445391 6,136,576
Growth............................... 837,106.965 15.770791 13,201,839
----------
63,863,271
==========
</TABLE>
A summary of changes in contract owners' account units follows:
<TABLE>
<CAPTION>
T. ROWE T. ROWE
MANAGED T. ROWE QUEST QUEST U.S. PRICE PRICE
MONEY ASSET PRICE INT'L FOR VALUE FOR VALUE GOVERNMENT EQUITY GROWTH
MARKET ALLOCATION STOCK EQUITY SMALL CAP SECURITIES INCOME STOCK GROWTH
SUBACCT. SUBACCT. SUBACCT. SUBACCT. SUBACCT. SUBACCT. SUBACCT. SUBACCT. SUBACCT.
---------- ---------- ----------- --------- --------- ---------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Units outstanding at
1/1/95................. 1,522,675 1,329,673 1,444,711 740,211 673,043 450,510 -- -- 182,787
Units purchased......... 4,371,335 1,693,308 2,026,680 1,603,267 1,864,220 3,076,825 1,404,730 1,288,344 250,284
Units redeemed and
transferred............ (2,377,852) 290,527 135,432 464,589 40,241 (871,235) 381,350 323,652 9,701
---------- --------- --------- --------- --------- ---------- --------- --------- -------
Units outstanding at
12/31/95............... 3,516,158 3,313,508 3,606,823 2,808,067 2,577,504 2,656,100 1,786,080 1,611,996 442,772
Units purchased......... 4,539,098 2,339,672 1,939,562 2,895,734 1,271,456 2,455,164 2,211,710 2,356,043 363,318
Units redeemed and
transferred............ (2,575,190) 184,116 513,749 399,547 207,960 (1,178,511) 541,418 277,577 31,017
---------- --------- --------- --------- --------- ---------- --------- --------- -------
Units outstanding at
6/30/96................ 5,480,066 5,837,296 6,060,134 6,103,348 4,056,920 3,932,753 4,539,208 4,245,616 837,107
========== ========= ========= ========= ========= ========== ========= ========= =======
</TABLE>
4. 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.
5. ADMINISTRATIVE, MORTALITY AND EXPENSE RISK CHARGES
Administrative charges include an annual charge of the lesser of 2% of the
policy value or $35 per contract which will commence on the first policy
anniversary of each contract owner's account. For policies issued on or after
May 1, 1995, the fee is waived if the sum of the premium payments less the sum
of all partial withdrawals is at least $50,000 on the policy anniversary.
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' account for administrative
expenses. In addition, during the first ten policy years PFL Life imposes a
daily distribution financing charge equal to an annual rate of .25% of the
value of the contract owners' account.
11
<PAGE>
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6. NET ASSETS
At June 30, 1996 contract owners' equity was comprised of:
<TABLE>
<CAPTION>
T. ROWE T. ROWE
MANAGED T. ROWE PRICE QUEST FOR QUEST FOR U.S. PRICE PRICE
MONEY ASSET INTERNATIONAL VALUE VALUE GOVERNMENT EQUITY GROWTH
MARKET ALLOCATION STOCK EQUITY SMALL CAP SECURITIES INCOME STOCK
TOTAL SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ---------- ---------- ------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit
transactions,
accumulated net
investment
income and
realized
capital gains.. $59,160,340 5,862,536 6,839,334 6,146,802 8,329,430 4,631,335 4,362,831 5,787,669 5,816,187
Adjustment for
appreciation to
market value... 4,702,931 -- 616,037 580,444 720,877 303,612 (101,304) 445,253 320,389
----------- --------- --------- --------- --------- --------- --------- --------- ---------
Total Contract
Owners'
Equity......... $63,863,271 5,862,536 7,455,371 6,727,246 9,050,307 4,934,947 4,261,527 6,232,922 6,136,576
=========== ========= ========= ========= ========= ========= ========= ========= =========
<CAPTION>
GROWTH
SUBACCOUNT
----------
<S> <C>
Unit
transactions,
accumulated net
investment
income and
realized
capital gains.. 11,384,216
Adjustment for
appreciation to
market value... 1,817,623
----------
Total Contract
Owners'
Equity......... 13,201,839
==========
</TABLE>
7. PURCHASES AND SALES OF INVESTMENT SECURITIES
The aggregate cost of purchases and proceeds from sales of investments were as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1996 AND YEAR
ENDED DECEMBER 31, 1995 OR COMMENCEMENT
OF OPERATIONS TO DECEMBER 31, 1995
-----------------------------------------
1996 1995
-------------------- --------------------
PURCHASES SALES PURCHASES SALES
---------- --------- ---------- ---------
<S> <C> <C> <C> <C>
Endeavor Series Trust
Money Market Portfolio.............. 4,662,321 2,502,565 4,608,764 2,453,849
Managed Asset Allocation Portfolio.. 3,615,189 460,828 2,731,032 515,801
T. Rowe Price International Stock
Portfolio.......................... 2,956,717 330,952 2,367,406 284,815
Quest for Value Equity Portfolio.... 5,264,125 328,595 2,736,494 231,712
Quest for Value Small Cap Portfo-
lio................................ 2,152,361 243,361 2,238,358 226,676
U.S. Government Securities Portfo-
lio................................ 2,602,315 1,123,149 3,503,308 1,185,517
T. Rowe Price Equity Income Portfo-
lio................................ 3,807,111 118,900 2,117,452 53,368
T. Rowe Price Growth Stock Portfo-
lio................................ 3,933,313 158,785 2,057,525 72,600
WRL Series Fund, Inc.
Growth Portfolio.................... 6,225,197 383,764 4,030,195 438,948
---------- --------- ---------- ---------
35,218,649 5,650,899 26,390,534 5,463,286
========== ========= ========== =========
</TABLE>
12
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