<PAGE>
- --------------------------------------------------------------------------------
ENDEAVOR VARIABLE ANNUITY
The PFL Endeavor
Variable Annuity Account
Annual Report
December 31, 1995
[LOGO OF PFL LIFE APPEARS HERE]
<PAGE>
- --------------------------------------------------------------------------------
Dear Valued Policyholder:
We are pleased to present the Annual Report of the PFL Endeavor Variable
Annuity Account for the year ended December 31, 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>
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THE PFL ENDEAVOR VARIABLE ANNUITY ACCOUNT
REPORT OF INDEPENDENT AUDITORS
THE BOARD OF DIRECTORS AND CONTRACT OWNERS OF
THE PFL ENDEAVOR VARIABLE ANNUITY ACCOUNT,
PFL LIFE INSURANCE COMPANY:
We have audited the accompanying balance sheet of The PFL Endeavor Variable
Annuity Account (comprising, respectively, the Money Market, Managed Asset
Allocation, T. Rowe Price International Stock, formerly Global Growth, Quest
for Value Equity, Quest for Value Small Cap, U.S. Government Securities, T.
Rowe Price Equity Income, T. Rowe Price Growth Stock and Growth subaccounts) as
of December 31, 1995, and the related statements of operations and changes in
contract owners' equity for the periods indicated therein. These financial
statements are the responsibility of the Variable Account's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of mutual fund shares owned as of December 31,
1995 by correspondence with the mutual funds' transfer agent. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of each of the respective
subaccounts constituting The PFL Endeavor Variable Annuity Account at December
31, 1995, and the results of their operations and changes in their contract
owners' equity for the periods indicated therein in conformity with generally
accepted accounting principles.
Ernst & Young LLP
Des Moines, Iowa
February 6, 1996
3
<PAGE>
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THE PFL ENDEAVOR VARIABLE ANNUITY ACCOUNT
BALANCE SHEET
December 31, 1995
<TABLE>
<CAPTION>
MANAGED
MONEY ASSET
MARKET ALLOCATION
TOTAL SUBACCOUNT SUBACCOUNT
------------ ---------- -----------
<S> <C> <C> <C>
ASSETS
Cash............................. $ 898 391 --
Investments in mutual funds, at
current market value:
Endeavor Series Trust--Money
Market Portfolio
23,545,639.080 shares @ $1.00
(cost $23,545,639)............. 23,545,639 23,545,639 --
Endeavor Series Trust--Managed
Asset Allocation Portfolio
11,918,924.892 shares @ $16.28
(cost $168,919,415)............ 194,040,097 -- 194,040,097
Endeavor Series Trust--T.
Rowe Price International Stock Portfolio
7,211,148.667 shares @ $12.19
(cost $85,267,781)............. 87,903,902 -- --
Endeavor Series Trust--Quest for
Value Equity Portfolio
4,505,534.118 shares @ $14.23
(cost $51,552,044)............. 64,113,750 -- --
Endeavor Series Trust--Quest for
Value Small Cap Portfolio
4,013,176.177 shares @ $12.22
(cost $44,614,794)............. 49,041,013 -- --
Endeavor Series Trust--U.S.
Government Securities Portfolio
834,755.868 shares @ $11.39
(cost $8,945,265).............. 9,507,869 -- --
Endeavor Series Trust--T. Rowe
Price Equity Income Portfolio
1,474,000.727 shares @ $13.05
(cost $16,969,518)............. 19,235,709 -- --
Endeavor Series Trust--T. Rowe
Price Growth Stock Portfolio
1,400,374.957 shares @ $13.72
(cost $17,299,992)............. 19,213,144 -- --
WRL Series Fund, Inc.--Growth
Portfolio
6,143,489.599 shares @
$31.660740 (cost
$165,131,909).................. 194,507,427 -- --
------------ ---------- -----------
Total investments in mutual
funds.......................... 661,108,550 23,545,639 194,040,097
------------ ---------- -----------
Total Assets.................... $661,109,448 23,546,030 194,040,097
============ ========== ===========
LIABILITIES AND CONTRACT OWNERS'
EQUITY
Liabilities:
Contract terminations payable... $ 1,716 -- 1,365
------------ ---------- -----------
Total Liabilities............... 1,716 -- 1,365
Contract Owners' Equity:
Deferred annuity contracts
terminable by owners
(Notes 2 and 5)................ 661,107,732 23,546,030 194,038,732
------------ ---------- -----------
$661,109,448 23,546,030 194,040,097
============ ========== ===========
</TABLE>
See accompanying Notes to Financial Statements.
4
<PAGE>
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<TABLE>
<CAPTION>
T. ROWE PRICE QUEST QUEST U.S. T. ROWE PRICE T. ROWE PRICE
INTERNATIONAL FOR VALUE FOR VALUE GOVERNMENT EQUITY GROWTH
STOCK EQUITY SMALL CAP SECURITIES INCOME STOCK GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- ---------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
348 -- -- 4 -- -- 155
-- -- -- -- -- -- --
-- -- -- -- -- -- --
87,903,902 -- -- -- -- -- --
-- 64,113,750 -- -- -- -- --
-- -- 49,041,013 -- -- -- --
-- -- -- 9,507,869 -- -- --
-- -- -- -- 19,235,709 -- --
-- -- -- -- -- 19,213,144 --
-- -- -- -- -- -- 194,507,427
---------- ---------- ---------- --------- ---------- ---------- -----------
87,903,902 64,113,750 49,041,013 9,507,869 19,235,709 19,213,144 194,507,427
---------- ---------- ---------- --------- ---------- ---------- -----------
87,904,250 64,113,750 49,041,013 9,507,873 19,235,709 19,213,144 194,507,582
========== ========== ========== ========= ========== ========== ===========
-- 38 107 -- 20 186 --
---------- ---------- ---------- --------- ---------- ---------- -----------
-- 38 107 -- 20 186 --
87,904,250 64,113,712 49,040,906 9,507,873 19,235,689 19,212,958 194,507,582
---------- ---------- ---------- --------- ---------- ---------- -----------
87,904,250 64,113,750 49,041,013 9,507,873 19,235,709 19,213,144 194,507,582
========== ========== ========== ========= ========== ========== ===========
</TABLE>
5
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THE PFL ENDEAVOR VARIABLE ANNUITY ACCOUNT
STATEMENT OF OPERATIONS
Year Ended December 31, 1995, Except as Noted
<TABLE>
<CAPTION>
MONEY
MARKET
TOTAL SUBACCOUNT
------------ ----------
<S> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends............................................ $ 26,198,860 1,116,099
Expenses (Note 4):
Administration Fee................................... 373,588 9,828
Mortality and expense risk charge.................... 7,617,955 290,516
------------ ----------
Net investment income (loss)....................... 18,207,317 815,755
------------ ----------
NET REALIZED AND UNREALIZED CAPITAL GAIN FROM
INVESTMENTS
Net realized capital gain from sales of investments:
Proceeds from sales.................................. 97,564,377 22,147,452
Cost of investments sold............................. 92,487,079 22,147,452
------------ ----------
Net realized capital gain from sales of investments... 5,077,298 --
Net change in unrealized appreciation/depreciation of
investments:
Beginning of the period.............................. (19,759,305) --
End of the period.................................... 78,862,193 --
------------ ----------
Net change in unrealized appreciation/depreciation
of investments.................................... 98,621,498 --
------------ ----------
Net realized and unrealized capital gain from
investments....................................... 103,698,796 --
------------ ----------
INCREASE FROM OPERATIONS.............................. $121,906,113 815,755
============ ==========
</TABLE>
/1Period/from January 3, 1995 (commencement of operations) to December 31, 1995
See accompanying Notes to Financial Statements.
6
<PAGE>
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<TABLE>
<CAPTION>
MANAGED T. ROWE PRICE QUEST QUEST U.S. T. ROWE PRICE T. ROWE PRICE
ASSET INTERNATIONAL FOR VALUE FOR VALUE GOVERNMENT EQUITY GROWTH
ALLOCATION STOCK EQUITY SMALL CAP SECURITIES INCOME STOCK GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT/1/ SUBACCOUNT/1/ SUBACCOUNT
---------- ------------- ---------- ---------- ---------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
3,088,290 1,905,564 450,078 898,264 45,359 6,080 2,293 18,686,833
120,822 62,100 28,047 25,718 2,106 2,723 2,561 119,683
2,519,643 1,128,199 651,904 558,056 68,038 110,030 118,920 2,172,649
---------- ---------- ---------- --------- --------- --------- --------- -----------
447,825 715,265 (229,873) 314,490 (24,785) (106,673) (119,188) 16,394,501
---------- ---------- ---------- --------- --------- --------- --------- -----------
28,948,644 15,084,564 5,610,299 6,682,997 1,987,556 1,290,315 2,586,929 13,225,621
26,638,735 14,814,382 4,637,825 6,499,082 1,881,414 1,219,746 2,265,355 12,383,088
---------- ---------- ---------- --------- --------- --------- --------- -----------
2,309,909 270,182 972,474 183,915 106,142 70,569 321,574 842,533
(6,470,369) (3,433,341) 812,987 98,422 (5,607) -- -- (10,761,397)
25,120,682 2,636,121 12,561,706 4,426,219 562,604 2,266,191 1,913,152 29,375,518
---------- ---------- ---------- --------- --------- --------- --------- -----------
31,591,051 6,069,462 11,748,719 4,327,797 568,211 2,266,191 1,913,152 40,136,915
---------- ---------- ---------- --------- --------- --------- --------- -----------
33,900,960 6,339,644 12,721,193 4,511,712 674,353 2,336,760 2,234,726 40,979,448
---------- ---------- ---------- --------- --------- --------- --------- -----------
34,348,785 7,054,909 12,491,320 4,826,202 649,568 2,230,087 2,115,538 57,373,949
========== ========== ========== ========= ========= ========= ========= ===========
</TABLE>
7
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THE PFL ENDEAVOR VARIABLE ANNUITY ACCOUNT
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
Years Ended December 31, 1995 and 1994, Except as Noted
<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)..... $ 18,207,317 (3,274,517) 815,755 465,670 447,825 (1,488,243) 715,265 (1,109,593)
Net realized
capital gain
(loss)............ 5,077,298 2,419,866 -- -- 2,309,909 1,977,991 270,182 977,924
Net change in
unrealized
appreciation/
depreciation of
investments....... 98,621,498 (29,172,129) -- -- 31,591,051 (11,852,634) 6,069,462 (6,194,482)
------------ ----------- ---------- ----------- ----------- ----------- ---------- ----------
Increase (decrease)
from operations... 121,906,113 (30,026,780) 815,755 465,670 34,348,785 (11,362,886) 7,054,909 (6,326,151)
------------ ----------- ---------- ----------- ----------- ----------- ---------- ----------
CONTRACT
TRANSACTIONS
Net contract
purchase
payments.......... 88,211,583 234,302,912 5,841,943 23,014,906 12,410,145 89,871,864 9,184,786 36,258,430
Transfer payments
from (to) other
subaccounts or
general account... 11,542,564 6,082,359 1,552,478 (5,548,300) (13,050,954) 2,556,650 (5,983,049) 2,713,770
Contract
terminations,
withdrawals, and
other deductions.. (30,449,875) (29,167,293) (3,792,801) (11,622,320) (10,070,716) (7,166,325) (4,529,562) (3,168,882)
------------ ----------- ---------- ----------- ----------- ----------- ---------- ----------
Increase (decrease)
from contract
transactions...... 69,304,272 211,217,978 3,601,620 5,844,286 (10,711,525) 85,262,189 (1,327,825) 35,803,318
------------ ----------- ---------- ----------- ----------- ----------- ---------- ----------
Net increase in
contract owners'
equity............ 191,210,385 181,191,198 4,417,375 6,309,956 23,637,260 73,899,303 5,727,084 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...... $661,107,732 469,897,347 23,546,030 19,128,655 194,038,732 170,401,472 87,904,250 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 December 31,
1995
See accompanying Notes to Financial Statements.
8
<PAGE>
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<TABLE>
<CAPTION>
QUEST QUEST U.S. T. ROWE PRICE T. ROWE PRICE
FOR VALUE FOR VALUE GOVERNMENT EQUITY GROWTH
EQUITY SMALL CAP SECURITIES INCOME STOCK GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------ ---------------------- -------------------- ------------- ------------- ------------------------
1995 1994 1995 1994 1995 1994/1/ 1995/2/ 1995/2/ 1995 1994
---------- ---------- ---------- ---------- --------- --------- ------------- ------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(229,873) (318,537) 314,490 (377,316) (24,785) (16,068) (106,673) (119,188) 16,394,501 (430,430)
972,474 123,433 183,915 87,357 106,142 (1,629) 70,569 321,574 842,533 (745,210)
11,748,719 701,663 4,327,797 (337,832) 568,211 (5,607) 2,266,191 1,913,152 40,136,915 (11,483,237)
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- ----------- -----------
12,491,320 506,559 4,826,202 (627,791) 649,568 (23,304) 2,230,087 2,115,538 57,373,949 (12,658,877)
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- ----------- -----------
12,995,862 17,773,676 8,735,949 20,426,242 4,592,266 1,474,717 8,911,233 8,445,892 17,093,507 45,483,077
9,309,756 3,393,046 2,469,022 3,358,491 1,487,465 1,630,896 8,365,208 9,027,597 (1,634,959) (2,022,194)
(2,587,120) (931,795) (1,976,028) (854,836) (280,049) (23,686) (270,839) (376,069) (6,566,691) (5,399,449)
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- ----------- -----------
19,718,498 20,234,927 9,228,943 22,929,897 5,799,682 3,081,927 17,005,602 17,097,420 8,891,857 38,061,434
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- ----------- -----------
32,209,818 20,741,486 14,055,145 22,302,106 6,449,250 3,058,623 19,235,689 19,212,958 66,265,806 25,402,557
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- ----------- -----------
31,903,894 11,162,408 34,985,761 12,683,655 3,058,623 -- -- -- 128,241,776 102,839,219
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- ----------- -----------
64,113,712 31,903,894 49,040,906 34,985,761 9,507,873 3,058,623 19,235,689 19,212,958 194,507,582 128,241,776
========== ========== ========== ========== ========= ========= ========== ========== =========== ===========
</TABLE>
9
<PAGE>
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THE PFL ENDEAVOR VARIABLE ANNUITY ACCOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
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 Subaccount and the T. Rowe Price Growth Stock
Subaccount commenced operations on January 3, 1995. The U.S. Government
Securities Subaccount commenced operations on May 9, 1994. Effective March 25,
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 an investment on a global basis to an investment on
an international basis (i.e. 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 December 31, 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.
2. CONTRACT OWNERS' EQUITY
Contract owners' equity at December 31, 1995 includes an amount of $2,489,112,
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
December 31, 1995 follows:
<TABLE>
<CAPTION>
ACCUMULATION
ACCUMULATION UNIT TOTAL
SUBACCOUNT UNITS OWNED VALUE CONTRACT VALUE
- ---------- --------------- ------------ --------------
<S> <C> <C> <C>
Money Market............ 21,103,926.232 $ 1.115718 $ 23,546,030
Managed Asset Alloca-
tion................... 122,974,873.030 1.577873 194,038,732
T. Rowe Price Interna-
tional Stock........... 75,065,177.549 1.171039 87,904,250
Quest for Value Equity.. 46,194,663.692 1.387903 64,113,712
Quest for Value Small
Cap.................... 40,635,696.978 1.206843 49,040,906
U.S. Government Securi-
ties................... 8,456,764.729 1.124292 9,507,873
T. Rowe Price Equity In-
come................... 14,943,358.393 1.287240 19,235,689
T. Rowe Price Growth
Stock.................. 14,196,707.745 1.353339 19,212,958
Growth.................. 13,337,196.679 14.583843 194,507,582
------------
$661,107,732
============
</TABLE>
10
<PAGE>
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A summary of changes in contract owners' account units follows:
<TABLE>
<CAPTION>
T. ROWE T. ROWE T. ROWE
MANAGED PRICE QUEST QUEST U.S. PRICE PRICE
MONEY ASSET INTERNATIONAL FOR VALUE FOR VALUE GOVERNMENT EQUITY GROWTH
MARKET ALLOCATION STOCK EQUITY SMALL CAP SECURITIES 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...... 5,330,850 8,434,205 8,306,067 10,252,470 7,689,441 4,246,735 7,630,746 6,772,799 1,343,793
Units redeemed
and
transferred.... (2,063,764) (16,369,319) (9,758,933) 5,429,963 338,908 1,107,358 7,312,612 7,423,909 (765,554)
----------- ----------- ---------- ---------- ---------- --------- ---------- ---------- ----------
Units
outstanding at
12/31/95....... 21,103,926 122,974,873 75,065,178 46,194,664 40,635,697 8,456,765 14,943,358 14,196,708 13,337,197
=========== =========== ========== ========== ========== ========= ========== ========== ==========
</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.
4. ADMINISTRATIVE, MORTALITY AND EXPENSE RISK CHARGE
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' 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.
11
<PAGE>
- --------------------------------------------------------------------------------
5. NET ASSETS
At December 31, 1995 contract owners' equity was comprised of:
<TABLE>
<CAPTION>
T. ROWE QUEST QUEST T. ROWE T. ROWE
MANAGED PRICE FOR FOR U.S. PRICE PRICE
MONEY ASSET INT'L VALUE VALUE GOVERNMENT EQUITY GROWTH
MARKET ALLOCATION STOCK EQUITY SMALL CAP SECURITIES INCOME STOCK
TOTAL SUBACCT. SUBACCT. SUBACCT. SUBACCT. SUBACCT. SUBACCT. SUBACCT. SUBACCT.
------------ ---------- ----------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit
transactions,
accumulated net
investment
income and
realized
capital gains.. $582,245,539 23,546,030 168,918,050 85,268,129 51,552,006 44,614,687 8,945,269 16,969,498 17,299,806
Adjustment for
appreciation to
market value... 78,862,193 -- 25,120,682 2,636,121 12,561,706 4,426,219 562,604 2,266,191 1,913,152
------------ ---------- ----------- ---------- ---------- ---------- --------- ---------- ----------
Total Contract
Owners'
Equity......... $661,107,732 23,546,030 194,038,732 87,904,250 64,113,712 49,040,906 9,507,873 19,235,689 19,212,958
============ ========== =========== ========== ========== ========== ========= ========== ==========
<CAPTION>
GROWTH
SUBACCT.
-----------
<S> <C>
Unit
transactions,
accumulated net
investment
income and
realized
capital gains.. 165,132,064
Adjustment for
appreciation to
market value... 29,375,518
-----------
Total Contract
Owners'
Equity......... 194,507,582
===========
</TABLE>
6. PURCHASES AND SALES OF INVESTMENT SECURITIES
The aggregate cost of purchases and proceeds from sales of investments were as
follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31 OR
COMMENCEMENT OF OPERATIONS TO DECEMBER 31
----------------------------------------------
1995 1994
----------------------- ----------------------
PURCHASES SALES PURCHASES SALES
------------ ---------- ----------- ----------
<S> <C> <C> <C> <C>
Endeavor Series Trust
Money Market Portfolio......... $26,532,769 22,147,452 43,579,370 37,253,502
Managed Asset Allocation Port-
folio......................... 18,527,700 28,948,644 103,215,961 19,396,350
T. Rowe Price International
Stock Portfolio............... 14,396,323 15,084,564 43,503,521 8,786,625
Quest for Value Equity Portfo-
lio........................... 25,078,057 5,610,299 22,790,075 2,862,770
Quest for Value Small Cap Port-
folio......................... 16,202,877 6,682,997 26,582,382 4,018,338
U.S. Government Securities
Portfolio..................... 7,759,453 1,987,556 3,471,600 402,745
T. Rowe Price Equity Income
Portfolio..................... 18,189,264 1,290,315 -- --
T. Rowe Price Growth Stock
Portfolio..................... 19,565,347 2,586,929 -- --
WRL Series Fund, Inc.
Growth Portfolio............... 38,416,739 13,225,621 47,107,997 9,507,090
------------ ---------- ----------- ----------
$184,668,529 97,564,377 290,250,906 82,227,420
============ ========== =========== ==========
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