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<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MARCH 5, 1998
FILE NO. 33-35412
FILE NO. 811-06116
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
------------------------
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/
POST-EFFECTIVE AMENDMENT NO. 17
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 /X/
AMENDMENT NO. 18
------------------------
NORTHBROOK VARIABLE ANNUITY ACCOUNT II
(Exact Name of Registrant)
NORTHBROOK LIFE INSURANCE COMPANY
(Name of Depositor)
MICHAEL J. VELOTTA
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
NORTHBROOK LIFE INSURANCE COMPANY
3100 SANDERS ROAD
NORTHBROOK, ILLINOIS 60062
847/402-2400
(Name and Complete Address of Agent for Service)
------------------------
COPIES TO:
RICHARD T. CHOI, ESQUIRE CHRISTINE A. EDWARDS, ESQUIRE
FREEDMAN, LEVY, KROLL & SIMONDS DEAN WITTER REYNOLDS INC.
650 CONNECTICUT AVENUE, NW TWO WORLD TRADE CENTER
WASHINGTON, DC 20006 NEW YORK, NEW YORK 10048
------------------------
<PAGE>
IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE BOX)
X immediately upon filing pursuant to paragraph (b) of Rule 485
---
on (date) pursuant to paragraph (b) of Rule 485
---
60 days after filing pursuant to paragraph (a)(1) of Rule 485
---
on (date) pursuant to paragraph (a)(1) of Rule 485
---
IF APPROPRIATE, CHECK THE FOLLOWING BOX:
___ This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
- --------------------------------------------------------------------------------
<PAGE>
CROSS REFERENCE SHEET
Showing Location in Part A (Prospectus) and Part B of Registration Statement of
Information Required by Form N-4
<TABLE>
<CAPTION>
ITEM OF
FORM N-4 PROSPECTUS CAPTION
- -------- ------------------
<S> <C>
1. Cover Page. . . . . . . . . . . . . . . . . . . Cover Page
2. Definitions . . . . . . . . . . . . . . . . . . Glossary
3. Synopsis. . . . . . . . . . . . . . . . . . . . Introduction: Summary of Separate
Account Expenses
4. Condensed Financials. . . . . . . . . . . . . . --
(a) Chart . . . . . . . . . . . . . . . . . . Condensed Financial Statements
(b) Performance Data. . . . . . . . . . . . . Performance Data
(c) Location of Others. . . . . . . . . . . . Financial Statements
5. General . . . . . . . . . . . . . . . . . . . . --
(a) Depositor . . . . . . . . . . . . . . . . Northbrook Life Insurance Company
(b) Registrant. . . . . . . . . . . . . . . . The Variable Account
(c) Portfolio Company . . . . . . . . . . . . Dean Witter Variable Investment Series
(d) Fund Prospectus . . . . . . . . . . . . . Dean Witter Variable Investment Series
(e) Voting Rights . . . . . . . . . . . . . . Voting Rights
(f) Administrators. . . . . . . . . . . . . . Charges & Other Deductions -- Contract
Maintenance Charge
6. Deductions & Expenses . . . . . . . . . . . . . Charges & Other Deductions
(a) General . . . . . . . . . . . . . . . . . Charges & Other Deductions
(b) Sales Load. . . . . . . . . . . . . . . . Surrender Charge
(c) Special Purchase Plans. . . . . . . . . . N/A
(d) Commissions . . . . . . . . . . . . . . . Sales Commission
(e) Fund Expenses . . . . . . . . . . . . . . Summary of Expenses; Dean Witter
Variable Investment Series Expenses
(f) Organizational Expenses . . . . . . . . . N/A
7. Contracts
(a) Persons with Rights . . . . . . . . . . . The Contracts; Benefits; Income
Payments; Voting Rights; Assignments;
Beneficiaries Contract Owners
(b) (i) Allocation of Purchase Payments . Allocation of Purchase Payments
(ii) Transfers. . . . . . . . . . . . . Transfers
(iii) Exchanges. . . . . . . . . . . . . N/A
(c) Changes . . . . . . . . . . . . . . . . . Modification
(d) Inquiries . . . . . . . . . . . . . . . . Customer Inquiries
8. Annuity Period. . . . . . . . . . . . . . . . . Income Payments
(a) Material Factors. . . . . . . . . . . . . Amount of Variable Annuity Income
Payments
(b) Dates . . . . . . . . . . . . . . . . . . Date Income Starting
(c) Frequency, duration & level . . . . . . . Amount of Variable Annuity Income
Payments
(d) AIR . . . . . . . . . . . . . . . . . . . Amount of Variable Annuity Income
Payments
<PAGE>
(e) Minimum . . . . . . . . . . . . . . . . . Amount of Variable Annuity Income
Payments
(f) -- Change Options . . . . . . . . . . . . Income Plans
-- Transfer . . . . . . . . . . . . . . . --
9. Death Benefit . . . . . . . . . . . . . . . . . Benefits Under the Contract
10. Purchases & Contract Value
(a) Purchases . . . . . . . . . . . . . . . . Purchase of the Contract; Crediting of
Purchase Payments
(b) Valuation . . . . . . . . . . . . . . . . Value of Variable Account Accumulation
Units
(c) Daily Calculation . . . . . . . . . . . . Value of Variable Account Accumulation
Units; Allocation of Purchase Payments
(d) Underwriter . . . . . . . . . . . . . . . Dean Witter Reynolds Inc.
11. Redemptions
(a) -- By Owners . . . . . . . . . . . . . . Surrender & Withdrawals
(b) -- By Annuitant. . . . . . . . . . . . . Annuity Options
(c) Texas ORP. . . . . . . . . . . . . . . . N/A
(d) Lapse. . . . . . . . . . . . . . . . . . Default
(e) Free Look. . . . . . . . . . . . . . . . Introduction
12. Taxes . . . . . . . . . . . . . . . . . . . . . Federal Tax Matters
13. Legal Proceedings . . . . . . . . . . . . . . . N/A
14. SAI Contents. . . . . . . . . . . . . . . . . . SAI Table of Contents
15. Cover Page. . . . . . . . . . . . . . . . . . . SAI: Cover Page
16. Table of Contents . . . . . . . . . . . . . . . SAI: Table of Contents
17. General Information & History
(a) Depositor's Name. . . . . . . . . . . . . Northbrook Life Insurance Company
(b) Assets of Sub-Account . . . . . . . . . . The Variable Account
(c) Control of Depositor. . . . . . . . . . . Northbrook Life Insurance Company
18. Services
(a) Fees & Expenses of Registrant . . . . . . Contract Maintenance Charge
(b) Management Contracts. . . . . . . . . . . Contract Maintenance Charge; Sales
Commissions
(c) Custodian . . . . . . . . . . . . . . . . SAI: Safekeeping of the Variable
Account's Assets
Independent Public Accountant . . . . . . SAI: Experts
(d) Assets of Registrant. . . . . . . . . . . SAI: Safekeeping of the Variable Account
Assets
(e) Affiliated Persons. . . . . . . . . . . . N/A
(f) Principal Underwriter . . . . . . . . ... Dean Witter Reynolds Inc.
19. Purchase of Securities Being Offered
(a) Offering. . . . . . . . . . . . . . . . . SAI: Purchase of Contracts
(b) Sales load. . . . . . . . . . . . . . ... SAI: Sales Commissions
20. Underwriters
(a) Principal Underwriter . . . . . . . . . . N/A
(b) Continuous offering . . . . . . . . . ... SAI: Purchase of Contracts
(c) Commissions . . . . . . . . . . . . . . . SAI: Sales Commissions; Dean Witter Reynolds Inc.
(d) Unaffiliated Underwriters . . . . . . . . N/A
21. Calculation of Performance Data . . . . . . . . SAI: Performance Data
<PAGE>
22. Annuity Payments. . . . . . . . . . . . . . . . SAI; Income Payments
23. Financial Statements
(a) Financial Statements of Registrant. . . . SAI; Northbrook Variable Annuity
Account Financial Statements
(b) Financial Statements of Depositor . . . . SAI; Northbrook Life Insurance
Company Financial Statements
24a. Financial Statements. . . . . . . . . . . . . . Part C. Financial Statements
24b. Exhibits. . . . . . . . . . . . . . . . . . . . Part C. Exhibits
25. Directors and Officers. . . . . . . . . . . . . Part C. Directors & Officers of Depositor
26. Persons Controlled By or Under Common Control
with Depositor or Registrant . . . . . . . . . Part C. Persons Controlled by or
Under Common Control with
Depositor or Registrant
27. Number of Contract Owners . . . . . . . . . . . Part C. Number of Contract Owners
28. Indemnification . . . . . . . . . . . . . . . . Part C. Indemnification
29a. Relationship of Principal Underwriter to Other
Investment Companies. . . . . . . . . . . . . . Part C. Relationship of Principal
Underwriter to Other Investment
Companies
29b. Principal Underwriters. . . . . . . . . . . . . Part C. Principal Underwriters
29c. Compensation of Underwriter . . . . . . . . . . Part C. Compensation of Dean Witter
30. Location of Accounts and Records. . . . . . . . Part C. Location of Accounts and Records
31. Management Services . . . . . . . . . . . . . . Part C. Management Services
32. Undertakings. . . . . . . . . . . . . . . . ... Part C. Undertakings
</TABLE>
<PAGE>
Registrant is filing this Post-effective Amendment No. 17 for the purpose of
adding four additional Sub-Accounts to the Variable Account.
Registrant does not intend for this Post-effective Amendment No. 17 to amend or
delete any other part of this Registration Statement except as specifically
noted herein.
<PAGE>
SUPPLEMENT DATED MARCH 5, 1998
TO THE PROSPECTUS DATED MAY 1, 1997
AS SUPPLEMENTED JANUARY 19, 1998
OF NORTHBROOK VARIABLE ANNUITY ACCOUNT II
OF NORTHBROOK LIFE INSURANCE COMPANY
Northbrook Life Insurance Company ("Northbrook Life") is pleased to
announce the availability of four new Sub-Accounts, described below, to the
Contracts described in the Prospectus. Capitalized terms have the same meaning
as given to them in the Prospectus. Please retain this Supplement for future
reference.
FOUR NEW SUB-ACCOUNTS
Cover Page: Replace the fourth paragraph with the following paragraph:
The Variable Account invests in shares of one or more management investment
companies ("Funds"). All of the Funds which are described in this prospectus
may not be available in your state. Presently, the Variable Account invests in
shares of the following Funds:
Dean Witter Variable Investment Series
Morgan Stanley Universal Funds, Inc.
Van Kampen American Capital Life Investment Trust
Page 4: Replace the following definitions:
Fund - The Dean Witter Variable Investment Series, the Morgan Stanley
Universal Funds, Inc. and/or the Van Kampen American Capital Life
Investment Trust.
Investment Alternative - The Fixed Account and the seventeen Sub-Accounts
of the Variable Account constitute the eighteen Investment Alternatives.
Portfolios - The mutual fund portfolios of the Funds.
Page 5: Question 3, substitute the following sentence for the first sentence:
The Variable Account invests in shares of the Dean Witter Variable
Investment Series, a mutual fund managed by Dean Witter InterCapital Inc., a
wholly owned subsidiary of Morgan Stanley, Dean Witter, Discover & Co.
Question 3, insert the following sentences before the third to last
sentence of the paragraph:
The Variable Account invests in shares of three Portfolios of Morgan
Stanley Universal Funds, Inc., a mutual fund managed by Morgan Stanley Asset
Management Inc., a wholly owned subsidiary of Morgan Stanley, Dean Witter,
Discover & Co. The Fund Portfolios include: the Equity Growth Portfolio, the
International Magnum Portfolio, and the Emerging Markets Equity Portfolio. The
Variable Account also invests in shares of one Portfolio of Van Kampen American
Capital Life Investment Trust, a mutual fund managed by Van Kampen American
Capital Asset Management, Inc., a wholly owned subsidiary of Morgan Stanley,
Dean Witter, Discover & Co. The Fund Portfolio includes: the Emerging Growth
Portfolio.
<PAGE>
Page 7: Replace the existing chart and add the following charts:
Dean Witter Variable Investment Series, Inc. ("Fund") Expenses
(as a percentage of Fund average assets)
<TABLE>
<CAPTION>
Management Other Total Fund
Portfolio Fees Expenses Annual Expenses
- --------- ---------- -------- ---------------
<S> <C> <C> <C>
Money Market .50% .02% .52%
Quality Income Plus .50%(1) .03% .53%
High Yield .50% .03% .53%
Utilities .65%(2) .02% .67%
Income Builder(4) .75% .24% .99%
Dividend Growth .53%(3) .01% .54%
Capital Growth .65% .06% .71%
Global Dividend Growth .75% .09% .84%
European Growth 1.00% .12% 1.12%
Pacific Growth 1.00% .44% 1.44%
Capital Appreciation(4) .75% .22% .97%
Equity .50%(5) .02% .52%
Strategist .50% .02% .52%
</TABLE>
(1) This percentage is applicable to Portfolio net assets of up to $500
million. For net assets which exceed $500 million, the management fee will
be 0.45%.
(2) This percentage is applicable to Portfolio net assets of up to $500
million. For net assets which exceed $500 million, the management fee will
be 0.55%.
(3) The management fee will be 0.625% for net assets of up to $500 million.
For net assets which exceed $500 million, but to not exceed $1 billion, the
management fee will be 0.50% and for net assets that exceed $1 billion, the
management fee will be 0.475%.
(4) Dean Witter InterCapital has undertaken to assume all expenses until the
pertinent portfolio has $50 million in assets or until July 31, 1998,
whichever occurs first. Income Builder obtained $50 million on December 3,
1997 resulting in fees being applied on that date and thereafter.
(5) This percentage is applicable to Portfolio net assets of up to $1 billion.
For net assets which exceed $1 billion, the management fee will be 0.475%.
Morgan Stanley Universal Funds, Inc. ("Fund") Expenses
(as a percentage of Fund average assets)
<TABLE>
<CAPTION>
Management Other Total Fund
Portfolio Fees(1) Expenses Annual Expenses
- --------- ---------- -------- ---------------
<S> <C> <C> <C>
Equity Growth 0% .85% .85%
International Magnum 0% 1.15% 1.15%
Emerging Markets Equity 0% 1.75% 1.75%
</TABLE>
(1) Morgan Stanley Asset Management Inc. has voluntarily agreed to a reduction
in its management fees and to reimburse the Portfolios for which it acts as
investment adviser if such fees would cause "Total Fund Annual Expenses" to
exceed the amount set forth in the table above. Absent such reductions the
expenses would have been as follows:
<TABLE>
<CAPTION>
Management Other Total Fund
Portfolio Fees Expenses Annual Expenses
- --------- ---------- -------- ---------------
<S> <C> <C> <C>
Equity Growth .55% 1.50% 2.05%
International Magnum .80% 1.98% 2.78%
Emerging Markets Equity 1.25% 2.87% 4.12%
</TABLE>
<PAGE>
Van Kampen American Capital Life Investment Trust ("Fund") Expenses
(as a percentage of Fund average assets)
<TABLE>
<CAPTION>
Management Other Total Fund
Portfolio Fees(1) Expenses Annual Expenses
- --------- ---------- -------- ---------------
<S> <C> <C> <C>
Emerging Growth 0% .85% .85%
</TABLE>
(1) Van Kampen American Capital has voluntarily agreed to a reduction in its
management fees and to reimburse the Portfolio for which it acts as
investment adviser if such fees would cause "Total Fund Annual Expenses" to
exceed the amount set forth in the table above. Absent such reductions the
expenses would have been as follows:
<TABLE>
<CAPTION>
Management Other Total Fund
Portfolio Fees Expenses Annual Expenses
- --------- ---------- -------- ---------------
<S> <C> <C> <C>
Emerging Growth .70% 1.80% 2.50%
</TABLE>
Page 8: Replace the charts in the example with the charts listed below:
"If you surrender your Contract ..."
(with both the optional Performance Income Benefit and the optional Performance
Death Benefit****)
<TABLE>
<CAPTION>
1 Year 3 Year 5 Year 10 Year
------ ------ ------ -------
<S> <C> <C> <C> <C>
Money Market Sub-Account $65 $94 $125 $250
Quality Income Plus Sub-Account $65 $94 $126 $251
High Yield Sub-Account $65 $94 $126 $251
Utilities Sub-Account $66 $98 $133 $266
Income Builder Sub-Account $69 $108 $149 $299
Dividend Growth Sub-Account $65 $94 $126 $252
Capital Growth Sub-Account $67 $100 $135 $270
Global Dividend Growth Sub-Account $68 $104 $142 $283
European Growth Sub-Account $71 $112 $156 $311
Pacific Growth Sub-Account $74 $122 $172 $343
Capital Appreciation Sub-Account $69 $108 $148 $296
Equity Sub-Account $65 $94 $125 $250
Strategist Sub-Account $65 $94 $125 $250
Equity Growth Sub-Account $68 $104 $142 $284
International Magnum Sub-Account $71 $113 $157 $314
Emerging Markets Equity Sub-Account $77 $131 $187 $372
Emerging Growth Sub-Account $68 $104 $142 $284
</TABLE>
(with an optional Death Benefit provision or the optional Performance
Income Benefit**)
<TABLE>
<CAPTION>
1 Year 3 Year 5 Year 10 Year
------ ------ ------ -------
<S> <C> <C> <C> <C>
Money Market Sub-Account $63 $90 $120 $239
Quality Income Plus Sub-Account $64 $91 $120 $240
High Yield Sub-Account $64 $91 $120 $240
Utilities Sub-Account $65 $95 $127 $255
Income Builder Sub-Account $68 $105 $144 $287
Dividend Growth Sub-Account $64 $91 $121 $241
Capital Growth Sub-Account $65 $96 $129 $259
Global Dividend Growth Sub-Account $67 $100 $136 $272
European Growth Sub-Account $70 $109 $150 $300
Pacific Growth Sub-Account $73 $118 $167 $332
Capital Appreciation Sub-Account $68 $104 $143 $285
<PAGE>
Equity Sub-Account $63 $90 $120 $239
Strategist Sub-Account $63 $90 $120 $239
Equity Growth Sub-Account $67 $100 $137 $273
International Magnum Sub-Account $70 $110 $152 $303
Emerging Markets Equity Sub-Account $76 $128 $182 $361
Emerging Growth Sub-Account $67 $100 $137 $273
</TABLE>
(without an optional Death Benefit provision or the optional Performance
Income Benefit ***)
<TABLE>
<CAPTION>
1 Year 3 Year 5 Year 10 Year
------ ------ ------ -------
<S> <C> <C> <C> <C>
Money Market Sub-Account $62 $86 $113 $225
Quality Income Plus Sub-Account $62 $87 $114 $227
High Yield Sub-Account $62 $87 $114 $227
Utilities Sub-Account $64 $91 $121 $241
Income Builder Sub-Account $67 $101 $137 $275
Dividend Growth Sub-Account $62 $87 $114 $228
Capital Growth Sub-Account $64 $92 $123 $246
Global Dividend Growth Sub-Account $65 $96 $130 $259
European Growth Sub-Account $68 $105 $144 $288
Pacific Growth Sub-Account $72 $115 $160 $320
Capital Appreciation Sub-Account $67 $100 $136 $273
Equity Sub-Account $62 $86 $113 $225
Strategist Sub-Account $62 $86 $113 $225
Equity Growth Sub-Account $66 $97 $130 $260
International Magnum Sub-Account $69 $106 $146 $291
Emerging Markets Equity Sub-Account $75 $124 $176 $350
Emerging Growth Sub-Account $66 $97 $130 $260
</TABLE>
"If you do not surrender your Contract ...."
(with both the optional Performance Income Benefit and the optional
Performance Death Benefit****)
<TABLE>
<CAPTION>
1 Year 3 Year 5 Year 10 Year
------ ------ ------ -------
<S> <C> <C> <C> <C>
Money Market Sub-Account $22 $68 $117 $250
Quality Income Plus Sub-Account $22 $68 $117 $251
High Yield Sub-Account $22 $68 $117 $251
Utilities Sub-Account $24 $73 $124 $266
Income Builder Sub-Account $27 $83 $141 $299
Dividend Growth Sub-Account $22 $69 $118 $252
Capital Growth Sub-Account $24 $74 $127 $270
Global Dividend Growth Sub-Account $25 $78 $133 $283
European Growth Sub-Account $28 $87 $147 $311
Pacific Growth Sub-Account $32 $96 $164 $343
Capital Appreciation Sub-Account $27 $82 $140 $296
Equity Sub-Account $22 $68 $117 $250
Strategist Sub-Account $22 $68 $117 $250
Equity Growth Sub-Account $25 $78 $134 $284
International Magnum Sub-Account $29 $88 $149 $314
Emerging Markets Equity Sub-Account $35 $106 $179 $372
Emerging Growth Sub-Account $25 $78 $134 $284
</TABLE>
<PAGE>
(with an optional Death Benefit provision or the optional Performance
Income Benefit**)
<TABLE>
<CAPTION>
1 Year 3 Year 5 Year 10 Year
------ ------ ------ -------
<S> <C> <C> <C> <C>
Money Market Sub-Account $21 $65 $111 $239
Quality Income Plus Sub-Account $21 $65 $112 $240
High Yield Sub-Account $21 $65 $112 $240
Utilities Sub-Account $23 $69 $119 $255
Income Builder Sub-Account $26 $79 $135 $287
Dividend Growth Sub-Account $21 $65 $112 $241
Capital Growth Sub-Account $23 $71 $121 $259
Global Dividend Growth Sub-Account $24 $75 $128 $272
European Growth Sub-Account $27 $83 $142 $300
Pacific Growth Sub-Account $30 $93 $158 $332
Capital Appreciation Sub-Account $26 $79 $134 $285
Equity Sub-Account $21 $65 $111 $239
Strategist Sub-Account $21 $65 $111 $239
Equity Growth Sub-Account $24 $75 $128 $273
International Magnum Sub-Account $27 $84 $143 $303
Emerging Markets Equity Sub-Account $34 $102 $173 $361
Emerging Growth Sub-Account $24 $75 $128 $273
</TABLE>
(without an optional Death Benefit provision or the optional Performance
Income Benefit ***)
<TABLE>
<CAPTION>
1 Year 3 Year 5 Year 10 Year
------ ------ ------ -------
<S> <C> <C> <C> <C>
Money Market Sub-Account $20 $61 $105 $225
Quality Income Plus Sub-Account $20 $61 $105 $227
High Yield Sub-Account $20 $61 $105 $227
Utilities Sub-Account $21 $66 $112 $241
Income Builder Sub-Account $25 $75 $129 $275
Dividend Growth Sub-Account $20 $62 $106 $228
Capital Growth Sub-Account $22 $67 $114 $246
Global Dividend Growth Sub-Account $23 $71 $121 $259
European Growth Sub-Account $26 $79 $136 $288
Pacific Growth Sub-Account $29 $89 $152 $320
Capital Appreciation Sub-Account $24 $75 $128 $273
Equity Sub-Account $20 $61 $105 $225
Strategist Sub-Account $20 $61 $105 $225
Equity Growth Sub-Account $23 $71 $122 $260
International Magnum Sub-Account $26 $80 $137 $291
Emerging Markets Equity Sub-Account $32 $99 $167 $350
Emerging Growth Sub-Account $23 $71 $122 $260
</TABLE>
****Total Separate Account Annual Expenses of 1.59%
**Total Separate Account Annual Expenses of 1.48%
***Total Separate Account Annual Expenses of 1.35%
<PAGE>
Page 9: Add the following column to the Condensed Financial Information table:
<TABLE>
<CAPTION>
1997
----
<S> <C>
Money Market Sub-Account
Accumulation Unit Value, Beginning of Period 12.086240
Accumulation Unit Value, End of Period 12.545891
Number of Units Outstanding, End of Period 18,625,329.60
Quality Income Plus Sub-Account
Accumulation Unit Value, Beginning of Period 16.291873
Accumulation Unit Value, End of Period 17.982521
Number of Units Outstanding, End of Period 20,839,536.29
High Yield Sub-Account
Accumulation Unit Value, Beginning of Period 24.146504
Accumulation Unit Value, End of Period 26.651638
Number of Units Outstanding, End of Period 8,797,892.14
Utilities Sub-Account
Accumulation Unit Value, Beginning of Period 19.132545
Accumulation Unit Value, End of Period 24.208448
Number of Units Outstanding, End of Period 15,172,386.90
Income Builder Sub-Account
Accumulation Unit Value, Beginning of Period 10.000000
Accumulation Unit Value, End of Period 12.083732
Number of Units Outstanding, End of Period 2,364,582.81
Dividend Growth Sub-Account
Accumulation Unit Value, Beginning of Period 26.253625
Accumulation Unit Value, End of Period 32.589936
Number of Units Outstanding, End of Period 39,673,541.61
Capital Growth Sub-Account
Accumulation Unit Value, Beginning of Period 16.213165
Accumulation Unit Value, End of Period 20.177340
Number of Units Outstanding, End of Period 4,469,790.49
Global Dividend Growth Sub-Account
Accumulation Unit Value, Beginning of Period 13.769880
Accumulation Unit Value, End of Period 15.303559
Number of Units Outstanding, End of Period 21,662,482.02
European Growth Sub-Account
Accumulation Unit Value, Beginning of Period 23.949281
Accumulation Unit Value, End of Period 27.870064
Number of Units Outstanding, End of Period 9,765,284.13
Pacific Growth Sub-Account
Accumulation Unit Value, Beginning of Period 9.817883
Accumulation Unit Value, End of Period 6.059243
Number of Units Outstanding, End of Period 8,191,656.38
Capital Appreciation Sub-Account
Accumulation Unit Value, Beginning of Period 10.000000
Accumulation Unit Value, End of Period 11.176955
Number of Units Outstanding, End of Period 1,609,655.21
Equity Sub-Account
Accumulation Unit Value, Beginning of Period 28.243565
Accumulation Unit Value, End of Period 38.873354
Number of Units Outstanding, End of Period 13,511,971.54
Strategist Sub-Account
Accumulation Unit Value, Beginning of Period 19.132545
Accumulation Unit Value, End of Period 21.539863
Number of Units Outstanding, End of Period 16,153,105.07
</TABLE>
<PAGE>
Page 10: Add the following column to the Condensed Financial Information table:
for Contracts with an Optional Death Benefit Provision
<TABLE>
<CAPTION>
1997
----
<S> <C>
Money Market Sub-Account
Accumulation Unit Value, Beginning of Period 12.067804
Accumulation Unit Value, End of Period 12.510584
Number of Units Outstanding, End of Period 5,406,174.68
Quality Income Plus Sub-Account
Accumulation Unit Value, Beginning of Period 16.266995
Accumulation Unit Value, End of Period 17.931874
Number of Units Outstanding, End of Period 2,700,281.79
High Yield Sub-Account
Accumulation Unit Value, Beginning of Period 24.109648
Accumulation Unit Value, End of Period 26.576588
Number of Units Outstanding, End of Period 3,843,253.28
Utilities Sub-Account
Accumulation Unit Value, Beginning of Period 19.103338
Accumulation Unit Value, End of Period 24.140294
Number of Units Outstanding, End of Period 1,753,742.93
Income Builder Sub-Account
Accumulation Unit Value, Beginning of Period 10.000000
Accumulation Unit Value, End of Period 12.068959
Number of Units Outstanding, End of Period 2,024,851.02
Dividend Growth Sub-Account
Accumulation Unit Value, Beginning of Period 26.213574
Accumulation Unit Value, End of Period 32.498223
Number of Units Outstanding, End of Period 13,973,140.58
Capital Growth Sub-Account
Accumulation Unit Value, Beginning of Period 16.188413
Accumulation Unit Value, End of Period 20.120513
Number of Units Outstanding, End of Period 1,365,426.82
Global Dividend Growth Sub-Account
Accumulation Unit Value, Beginning of Period 13.748863
Accumulation Unit Value, End of Period 15.260474
Number of Units Outstanding, End of Period 7,789,952.24
European Growth Sub-Account
Accumulation Unit Value, Beginning of Period 23.912739
Accumulation Unit Value, End of Period 27.791611
Number of Units Outstanding, End of Period 3,091,981.26
Pacific Growth Sub-Account
Accumulation Unit Value, Beginning of Period 9.802888
Accumulation Unit Value, End of Period 6.042153
Number of Units Outstanding, End of Period 2,105,514.42
Capital Appreciation Sub-Account
Accumulation Unit Value, Beginning of Period 10.000000
Accumulation Unit Value, End of Period 11.163269
Number of Units Outstanding, End of Period 1,147,827.70
Equity Sub-Account
Accumulation Unit Value, Beginning of Period 28.200434
<PAGE>
Accumulation Unit Value, End of Period 38.763896
Number of Units Outstanding, End of Period 5,454,408.82
Strategist Sub-Account
Accumulation Unit Value, Beginning of Period 19.042238
Accumulation Unit Value, End of Period 21.479229
Number of Units Outstanding, End of Period 3,529,096.07
</TABLE>
Page 11: Under "Dean Witter Reynolds Inc.", replace the second sentence in the
first paragraph with the following sentence:
Dean Witter is a wholly owned subsidiary of Morgan Stanley, Dean Witter,
Discover & Co. ("Morgan Stanley, Dean Witter Discover").
After the second paragraph add the following paragraphs:
Morgan Stanley, Dean Witter Discover's wholly owned subsidiary, Morgan
Stanley Asset Management Inc. ("MSAM"), is the investment manager of Morgan
Stanley Universal Funds, Inc. MSAM is registered with the Securities and
Exchange Commission as an investment adviser. As compensation for investment
management, the Fund pays MSAM a monthly advisory fee. These expenses are more
fully described in the Fund's Prospectus.
Morgan Stanley, Dean Witter Discover's wholly owned subsidiary, Van Kampen
American Capital Asset Management, Inc. ("VKACAM"), is the investment manager of
Van Kampen American Capital Life Investment Trust. VKACAM is registered with the
Securities and Exchange Commission as an investment adviser. As compensation
for investment management, the Fund pays VKACAM a monthly advisory fee. These
expenses are more fully described in the Fund's Prospectus.
Pages 11-12: Delete the third paragraph under "Dean Witter Reynolds Inc."
Page 12: In the first sentence under "Dean Witter Variable Investment Series"
delete the word "exclusively" and at the end of the sentence add ", the
Morgan Stanley Universal Funds, Inc. and the Van Kampen American Capital Life
Investment Trust (collectively "Funds")." Also in the fourth, fifth and
sixth sentences change "Fund" to "Funds".
In the third paragraph under "Dean Witter Variable Investment Series"
change "Fund" to "Funds".
Page 13: Before the third to last paragraph prior to "The Contracts", add the
following:
Morgan Stanley Universal Funds, Inc.
The Fund Portfolios available under the Contracts include: the Equity
Growth Portfolio, the International Magnum Portfolio, and the Emerging Markets
Equity Portfolio. Each Portfolio has different investment objectives and
policies and operates as a separate investment fund.
The Equity Growth Portfolio seeks long-term capital appreciation by
investing primarily in equity securities of medium and large capitalization
companies that, in the investment adviser's judgment, provide above-average
potential for capital growth.
<PAGE>
The International Magnum Portfolio seeks long-term capital appreciation by
investing primarily in equity securities of non-US issuers domiciled in EAFE
countries (defined as countries that include Australia, Japan, New Zealand, most
nations in Western Europe and certain developed countries in Asia such as Hong
Kong and Singapore, see the Fund's prospectus for greater detail).
The Emerging Markets Equity Portfolio seeks long-term capital appreciation
by investing primarily in equity securities of emerging market country issuers
with a focus on those in which the investment manager believes the economies are
developing strongly and in which the markets are becoming more sophisticated.
Van Kampen American Capital Life Investment Trust
The Fund Portfolio available under the Contracts includes: the Emerging
Growth Portfolio. The Emerging Growth Portfolio seeks capital appreciation by
investing in a portfolio of securities consisting of common stocks of small and
medium sized companies considered by the investment manager to be emerging
growth companies.
Page 13: In the last two paragraphs before "The Contracts" change "Fund" to
"Funds" and "Prospectus" to "Prospectuses".
Page 17: Under "Dean Witter Variable Investment Series ("Fund") Expenses"
change the heading to "Fund Expenses" and replace the word "the" with the word
"each".
<PAGE>
SUPPLEMENT DATED MARCH 5, 1998 TO
THE STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 1997
AS SUPPLEMENTED JANUARY 19, 1998
OF NORTHBROOK VARIABLE ANNUITY ACCOUNT II
OF NORTHBROOK LIFE INSURANCE COMPANY
The Statement of Additional Information is amended as set forth below. Please
retain this Supplement for future reference.
Under "Standardized Total Return" replace the existing table with the following
tables for the periods ended December 31, 1997:
(Without an optional Death Benefit provision or the optional Performance Income
Benefit)
<TABLE>
<CAPTION>
10-Years or Since
Sub-Account 1 Year 5-Years Inception (if less)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Money Market (0.48%) 2.91% 3.15%
Quality Income Plus 5.32% 6.54% 8.47%
High Yield 6.06% 10.13% 14.58%
Utilities 21.14% 11.67% 13.05%
Income Builder NA NA 16.74%
Dividend Growth 19.62% 16.90% 17.84%
Capital Growth 18.58% 9.48% 10.77%
Global Dividend Growth 6.23% NA 11.13%
European Growth 10.22% 21.96% 16.13%
Pacific Growth (42.84%) NA (13.22%)
Capital Appreciation NA NA 7.05%
Equity 31.29% 18.42% 20.77%
Strategist 7.89% 8.78% 11.23%
</TABLE>
(With an optional Death Benefit provision or the optional Performance Income
Benefit)
<TABLE>
<CAPTION>
10-Years or Since
Sub-Account 1 Year 5-Years Inception (if less)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Money Market (0.61%) 2.78% 3.07%
Quality Income Plus 5.18% 6.40% 8.33%
High Yield 5.92% 9.98% 14.43%
Utilities 20.99% 11.53% 12.91%
Income Builder NA NA 16.58%
Dividend Growth 19.46% 16.75% 17.69%
Capital Growth 18.41% 9.34% 10.63%
Global Dividend Growth 6.09% NA 10.99%
European Growth 10.08% 21.81% 15.99%
Pacific Growth (42.91%) NA (13.33%)
Capital Appreciation NA NA 6.90%
Equity 31.12% 18.27% 20.62%
Strategist 7.75% 8.64% 11.09%
</TABLE>
(With both the Optional Performance Income Benefit and the Optional Performance
Death Benefit)
<TABLE>
<CAPTION>
10-Years or Since
Sub-Account 1 Year 5-Years Inception (if less)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Money Market (0.72%) 2.67% 2.91%
Quality Income Plus 5.07% 6.29% 8.21%
<PAGE>
High Yield 5.81% 9.86% 14.31%
Utilities 20.85% 11.41% 12.79%
Income Builder NA NA 16.45%
Dividend Growth 19.33% 16.62% 17.56%
Capital Growth 18.28% 9.22% 10.51%
Global Dividend Growth 5.98% NA 10.87%
European Growth 9.96% 21.67% 15.86%
Pacific Growth (42.98%) NA (13.43%)
Capital Appreciation NA NA 6.78%
Equity 30.97% 18.15% 20.49%
Strategist 7.63% 8.52% 10.97%
</TABLE>
Above the first paragraph on page 5, add the heading "Adjusted Historical
Return". Replace the existing table that follows that paragraph with the
following tables for the periods ended December 31, 1997:
Adjusted Historical Return
(Without an optional Death Benefit provision or the optional Performance Income
Benefit)
<TABLE>
<CAPTION>
10-Years or Since
Sub-Account 1 Year 5-Years Inception (if less)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Money Market (0.48%) 2.91% 4.13%
Quality Income Plus 5.32% 6.54% 7.93%
High Yield 6.06% 10.13% 7.32%
Utilities 21.14% 11.67% 11.73%
Income Builder NA NA 16.74%
Dividend Growth 19.62% 16.90% 13.44%
Capital Growth 18.58% 9.48% 10.77%
Global Dividend Growth 6.23% NA 11.13%
European Growth 10.22% 21.96% 16.13%
Pacific Growth (42.84%) NA (13.22%)
Capital Appreciation NA NA 7.05%
Equity 31.29% 18.42% 15.89%
Strategist 7.89% 8.78% 9.57%
Equity Growth NA NA 26.32%
International Magnum NA NA 0.74%
Emerging Markets Equity (5.33%) NA (6.22%)
Emerging Growth 14.52% NA 19.34%
</TABLE>
(With an optional Death Benefit provision or the optional Performance Income
Benefit)
<TABLE>
<CAPTION>
10-Years or Since
Sub-Account 1 Year 5-Years Inception (if less)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Money Market (0.61%) 2.78% 4.06%
Quality Income Plus 5.18% 6.40% 7.86%
High Yield 5.92% 9.98% 7.26%
Utilities 20.99% 11.53% 11.68%
Income Builder NA NA 16.58%
Dividend Growth 19.46% 16.75% 13.39%
Capital Growth 18.41% 9.34% 10.63%
Global Dividend Growth 6.09% NA 10.99%
European Growth 10.08% 21.81% 15.99%
<PAGE>
Pacific Growth (42.91%) NA (13.33%)
Capital Appreciation NA NA 6.90%
Equity 31.12% 18.27% 15.81%
Strategist 7.75% 8.64% 9.50%
Equity Growth NA NA 26.15%
International Magnum NA NA 0.60%
Emerging Markets Equity (5.46%) NA (6.35%)
Emerging Growth 14.36% NA 19.18%
</TABLE>
(With both the Optional Performance Income Benefit and the Optional Performance
Death Benefit)
<TABLE>
<CAPTION>
10-Years or Since
Sub-Account 1 Year 5-Years Inception (if less)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Money Market (0.72%) 2.67% 3.88%
Quality Income Plus 5.07% 6.29% 7.67%
High Yield 5.81% 9.86% 7.06%
Utilities 20.85% 11.41% 11.46%
Income Builder NA NA 16.45%
Dividend Growth 19.33% 16.62% 13.16%
Capital Growth 18.28% 9.22% 10.51%
Global Dividend Growth 5.98% NA 10.87%
European Growth 9.96% 21.67% 15.86%
Pacific Growth (42.98%) NA (13.43%)
Capital Appreciation NA NA 6.78%
Equity 30.97% 18.15% 15.61%
Strategist 7.63% 8.52% 9.31%
Equity Growth NA NA 26.00%
International Magnum NA NA 0.49%
Emerging Markets Equity (5.57%) NA (6.45%)
Emerging Growth 14.23% NA 19.05%
</TABLE>
Under "Other Total Return" replace the existing table with the following tables
for the periods ended December 31, 1997:
(Without an optional Death Benefit provision or the optional Performance Income
Benefit)
<TABLE>
<CAPTION>
10-Years or Since
Sub-Account 1 Year 5-Years Inception (if less)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Money Market 3.82% 3.11% 3.21%
Quality Income Plus 9.62% 6.72% 8.51%
High Yield 10.37% 10.29% 14.61%
Utilities 25.45% 11.83% 13.09%
Income Builder NA NA 22.24%
Dividend Growth 23.92% 17.03% 17.86%
Capital Growth 22.87% 9.65% 10.81%
Global Dividend Growth 10.54% NA 11.66%
European Growth 14.53% 22.07% 16.16%
Pacific Growth (38.54%) NA (12.18%)
Capital Appreciation NA NA 12.53%
Equity 35.59% 18.55% 20.79%
Strategist 12.19% 8.95% 11.26%
Equity Growth NA NA 31.48%
<PAGE>
International Magnum NA NA 5.92%
Emerging Markets Equity (1.04%) NA (2.71%)
Emerging Growth 18.81% NA 20.41%
</TABLE>
(With an optional Death Benefit provision or the optional Performance Income
Benefit)
<TABLE>
<CAPTION>
10-Years or Since
Sub-Account 1 Year 5-Years Inception (if less)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Money Market 3.69% 2.97% 3.07%
Quality Income Plus 9.48% 6.58% 8.36%
High Yield 10.22% 10.13% 14.45%
Utilities 25.29% 11.69% 12.94%
Income Builder NA NA 22.08%
Dividend Growth 23.76% 16.88% 17.71%
Capital Growth 22.71% 9.50% 10.66%
Global Dividend Growth 10.39% NA 11.52%
European Growth 14.38% 21.92% 16.01%
Pacific Growth (38.62%) NA (12.29%)
Capital Appreciation NA NA 12.39%
Equity 35.42% 18.40% 20.63%
Strategist 12.05% 8.80% 11.12%
Equity Growth NA NA 31.31%
International Magnum NA NA 5.78%
Emerging Markets Equity (1.17%) NA (2.83%)
Emerging Growth 18.66% NA 20.25%
</TABLE>
(With both the Optional Performance Income Benefit and the Optional Performance
Death Benefit)
<TABLE>
<CAPTION>
10-Years or Since
Sub-Account 1 Year 5-Years Inception (if less)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Money Market 3.57% 2.86% 2.96%
Quality Income Plus 9.36% 6.46% 8.25%
High Yield 10.10% 10.01% 14.33%
Utilities 25.15% 11.56% 12.82%
Income Builder NA NA 21.95%
Dividend Growth 23.63% 16.75% 17.58%
Capital Growth 22.58% 9.38% 10.54%
Global Dividend Growth 10.27% NA 11.39%
European Growth 14.25% 21.78% 15.89%
Pacific Growth (38.68%) NA (12.39%)
Capital Appreciation NA NA 12.26%
Equity 35.27% 18.27% 20.50%
Strategist 11.93% 8.68% 11.00%
Equity Growth NA NA 31.16%
International Magnum NA NA 5.66%
Emerging Markets Equity (1.27%) NA (2.94%)
Emerging Growth 18.53% NA 20.12%
</TABLE>
The unaudited financial statements of Northbrook Life Insurance Company for the
third quarter ended September 30, 1997 are incorporated by reference to the
Company's Form 10-Q Report for that period (File No. 33-90272), a copy of which
accompanies this Statement of Additional Information.
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Shareholder of
Northbrook Life Insurance Company:
We have audited the accompanying statement of net assets of Northbrook Variable
Annuity Account II (the "Account") as of December 31, 1997, and the related
statement of operations for the year then ended and the statement of changes in
net assets for the year ended December 31, 1997 of the Money Market, High Yield,
Equity, Quality Income Plus, Strategist, Dividend Growth, Utilities, European
Growth, Capital Growth, Global Dividend Growth, Pacific Growth, Capital
Appreciation, and Income Builder portfolios that comprise the Account and for
the year ended December 31, 1996 of the Money Market, High Yield, Equity,
Quality Income Plus, Strategist, Dividend Growth, Utilities, European Growth,
Capital Growth, Global Dividend Growth, and Pacific Growth portfolios that
comprise the Account. These financial statements are the responsibility of the
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 securities owned at December 31, 1997. 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, such financial statements present fairly, in all material
respects, the financial position of the Account as of December 31, 1997, the
results of its operations for the year then ended, and the changes in net assets
for each of the two years in the period then ended, of each of the portfolios
comprising the Account, in conformity with generally accepted accounting
principles.
/s/ DELOITTE & TOUCHE LLP
Chicago, Illinois
February 20, 1998
<PAGE>
NORTHBROOK VARIABLE ANNUITY ACCOUNT II
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<S> <C>
($ and shares in thousands)
ASSETS
Investments in the Dean Witter Variable Investment
Series Portfolios:
Money Market, 301,306 shares (cost $301,306) $ 301,306
High Yield, 55,003 shares (cost $348,823) 336,619
Equity, 21,938 shares (cost $560,962) 736,690
Quality Income Plus, 39,291 shares (cost $416,727) 423,168
Strategist, 28,631 shares (cost $371,672) 423,738
Dividend Growth, 80,882 shares (cost $1,254,591) 1,747,060
Utilities, 22,035 shares (cost $297,406) 409,636
European Growth, 15,212 shares (cost $264,905) 358,090
Capital Growth, 6,433 shares (cost $96,620) 117,662
Global Dividend Growth, 32,426 shares (cost $386,272) 450,391
Pacific Growth, 10,189 shares (cost $96,689) 62,357
Capital Appreciation, 2,721 shares (cost $29,661) 30,805
Income Builder, 4,508 shares (cost $49,413) 53,011
-----------
Total assets 5,450,533
LIABILITIES
Payable to Northbrook Life Insurance Company:
Accrued contract maintenance charges 1,303
-----------
Net assets $ 5,449,230
-----------
-----------
</TABLE>
See notes to financial statements.
<PAGE>
NORTHBROOK VARIABLE ANNUITY ACCOUNT II
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997
- ----------------------------------------------------------------------------------------------------------------------------------
($ in thousands)
Dean Witter Variable Investment Series Portfolios
------------------------------------------------------------------------------------------------------
Quality
Money High Income Dividend
Market Yield Equity Plus Strategist Growth Utilities
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 16,353 $ 34,268 $ 41,702 $ 27,402 $ 20,644 $ 99,490 $ 17,681
Charges from Northbrook
Life Insurance Company:
Mortality and expense risk (4,022) (3,549) (7,450) (5,127) (5,001) (18,630) (4,653)
Administrative expense (316) (278) (583) (407) (396) (1,463) (370)
--------- --------- --------- --------- --------- --------- ---------
Net investment income
(loss) 12,015 30,441 33,669 21,868 15,247 79,397 12,658
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from
sales of investments:
Proceeds from sales 196,264 23,906 67,364 72,313 44,632 80,976 92,601
Cost of investments sold (196,264) (24,070) (53,203) (73,318) (38,107) (53,624) (76,667)
--------- --------- --------- --------- --------- --------- ---------
Net realized gains
(losses) - (164) 14,161 (1,005) 6,525 27,352 15,934
--------- --------- --------- --------- --------- --------- ---------
Change in unrealized
gains (losses) - (2,116) 125,556 16,518 21,328 191,096 56,029
--------- --------- --------- --------- --------- --------- ---------
Net gains (losses)
on investments - (2,280) 139,717 15,513 27,853 218,448 71,963
--------- --------- --------- --------- --------- --------- ---------
CHANGE IN NET ASSETS
RESULTING FROM
OPERATIONS $ 12,015 $ 28,161 $ 173,386 $ 37,381 $ 43,100 $ 297,845 $ 84,621
--------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- ---------
</TABLE>
<TABLE>
<CAPTION>
Dean Witter Variable Investment Series Portfolios
------------------------------------------------------------------------------------------------------
Global
European Capital Dividend Pacific Capital Income
Growth Growth Growth Growth Appreciation Builder Total
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 20,132 $ 11,049 $ 23,088 $ 1,707 $ - $ 1,239 $ 314,755
Charges from Northbrook
Life Insurance Company:
Mortality and expense risk (4,142) (1,254) (5,018) (1,368) (199) (283) (60,696)
Administrative expense (326) (99) (394) (108) (15) (22) (4,777)
--------- --------- --------- --------- --------- --------- ---------
Net investment income
(loss) 15,664 9,696 17,676 231 (214) 934 249,282
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from
sales of investments:
Proceeds from sales 43,054 13,791 21,637 56,309 2,358 642 715,847
Cost of investments sold (30,764) (10,602) (17,642) (64,678) (2,200) (608) (641,747)
--------- --------- --------- --------- --------- --------- ---------
Net realized gains
(losses) 12,290 3,189 3,995 (8,369) 158 34 74,100
--------- --------- --------- --------- --------- --------- ---------
Change in unrealized
gains (losses) 15,432 4,657 12,263 (35,707) 1,144 3,598 409,798
--------- --------- --------- --------- --------- --------- ---------
Net gains (losses)
on investments 27,722 7,846 16,258 (44,076) 1,302 3,632 483,898
--------- --------- --------- --------- --------- --------- ---------
CHANGE IN NET ASSETS
RESULTING FROM
OPERATIONS $ 43,386 $ 17,542 $ 33,934 $ (43,845) $ 1,088 $ 4,566 $ 733,180
--------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- ---------
</TABLE>
See notes to financial statements.
<PAGE>
NORTHBROOK VARIABLE ANNUITY ACCOUNT II
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1997
- ----------------------------------------------------------------------------------------------------------------------------------
($ and units in thousands, except value per unit)
Dean Witter Variable Investment Series Portfolios
------------------------------------------------------------------------------------------------------
Quality
Money High Income Dividend
Market Yield Equity Plus Strategist Growth Utilities
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income
(loss) $ 12,015 $ 30,441 $ 33,669 $ 21,868 $ 15,247 $ 79,397 $ 12,658
Net realized gains
(losses) - (164) 14,161 (1,005) 6,525 27,352 15,934
Change in unrealized gains
(losses) - (2,116) 125,556 16,518 21,328 191,096 56,029
--------- --------- --------- --------- --------- ---------- ---------
Change in net assets
resulting from
operations 12,015 28,161 173,386 37,381 43,100 297,845 84,621
FROM CAPITAL TRANSACTIONS
Deposits 149,402 104,526 162,502 50,521 85,569 446,039 30,744
Benefit payments (9,812) (3,029) (4,642) (7,406) (4,738) (13,976) (6,217)
Payments on termination (82,460) (34,243) (76,080) (55,141) (53,102) (185,959) (53,999)
Contract maintenance charges (101) (123) (296) (182) (184) (748) (192)
Transfers among the
portfolios and with the
Fixed Account - net (68,644) 13,062 30,461 (17,577) 6,753 59,898 (32,932)
--------- --------- --------- --------- --------- ---------- ---------
Change in net assets
resulting from
capital transactions (11,615) 80,193 111,945 (29,785) 34,298 305,254 (62,596)
--------- --------- --------- --------- --------- ---------- ---------
INCREASE (DECREASE) IN
NET ASSETS 400 108,354 285,331 7,596 77,398 603,099 22,025
NET ASSETS AT BEGINNING
OF PERIOD 300,834 228,184 451,183 415,471 346,239 1,143,544 387,513
--------- --------- --------- --------- --------- ---------- ---------
NET ASSETS AT END OF
PERIOD $ 301,234 $ 336,538 $ 736,514 $ 423,067 $ 423,637 $1,746,643 $ 409,538
--------- --------- --------- --------- --------- ---------- ---------
--------- --------- --------- --------- --------- ---------- ---------
CONTRACTS WITHOUT THE
DEATH BENEFIT OPTIONS
Net asset value per unit
at end of period $ 12.55 $ 26.65 $ 38.87 $ 17.98 $ 21.54 $ 32.59 $ 24.21
--------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- ---------
Units outstanding at end
of period 18,622 8,795 13,509 20,834 16,149 39,665 15,170
--------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- ---------
CONTRACTS WITH THE
DEATH BENEFIT OPTIONS
Net asset value per unit
at end of period $ 12.51 $ 26.57 $ 38.76 $ 17.93 $ 21.48 $ 32.50 $ 24.14
--------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- ---------
Units outstanding at end
of period 5,407 3,844 5,455 2,701 3,529 13,970 1,754
--------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- ---------
</TABLE>
<TABLE>
<CAPTION>
Dean Witter Variable Investment Series Portfolios
------------------------------------------------------------------------------------------------------
Global
European Capital Dividend Pacific Capital Income
Growth Growth Growth Growth Appreciation Builder Total
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income
(loss) $ 15,664 $ 9,696 $ 17,676 $ 231 $ (214) $ 934 $ 249,282
Net realized gains
(losses) 12,290 3,189 3,995 (8,369) 158 34 74,100
Change in unrealized
gains (losses) 15,432 4,657 12,263 (35,707) 1,144 3,598 409,798
--------- --------- --------- --------- --------- --------- ----------
Change in net assets
resulting from
operations 43,386 17,542 33,934 (43,845) 1,088 4,566 733,180
FROM CAPITAL TRANSACTIONS
Deposits 87,645 24,982 128,566 15,672 18,352 31,208 1,335,728
Benefit payments (2,725) (910) (3,466) (1,262) (109) (165) (58,457)
Payments on termination (37,732) (11,218) (41,571) (11,743) (944) (1,458) (645,650)
Contract maintenance
charges (148) (49) (199) (37) (12) (15) (2,286)
Transfers among the
portfolios and with the
Fixed Account - net (3,726) 8,692 25,556 (26,769) 12,422 18,862 26,058
--------- --------- --------- --------- --------- --------- ----------
Change in net assets
resulting from capital
transactions 43,314 21,497 108,886 (24,139) 29,709 48,432 655,393
--------- --------- --------- --------- --------- --------- ----------
INCREASE (DECREASE) IN
NET ASSETS 86,700 39,039 142,820 (67,984) 30,797 52,998 1,388,573
NET ASSETS AT BEGINNING
OF PERIOD 271,305 78,594 307,464 130,326 - - 4,060,657
--------- --------- --------- --------- --------- --------- ----------
NET ASSETS AT END
OF PERIOD $ 358,005 $ 117,633 $ 450,284 $ 62,342 $ 30,797 $ 52,998 $5,449,230
--------- --------- --------- --------- --------- --------- ----------
--------- --------- --------- --------- --------- --------- ----------
CONTRACTS WITHOUT THE
DEATH BENEFIT OPTIONS
Net asset value per unit
at end of period $ 27.87 $ 20.18 $ 15.30 $ 6.06 $ 11.18 $ 12.08
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
Units outstanding at
end of period 9,762 4,469 21,656 8,190 1,609 2,363
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
CONTRACTS WITH THE
DEATH BENEFIT OPTIONS
Net asset value per unit
at end of period $ 27.79 $ 20.12 $ 15.26 $ 6.04 $ 11.16 $ 12.07
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
Units outstanding at
end of period 3,091 1,365 7,789 2,105 1,148 2,025
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
</TABLE>
See notes to financial statements.
<PAGE>
NORTHBROOK VARIABLE ANNUITY ACCOUNT II
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------------
($ and units in thousands, except value per unit)
Dean Witter Variable Investment Series Portfolios
------------------------------------------------------------------------------------------------------
Quality
Money High Income Dividend
Market Yield Equity Plus Strategist Growth Utilities
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income
(loss) $ 9,192 $ 19,006 $ 42,957 $ 23,023 $ 8,903 $ 31,688 $ 10,360
Net realized gains (losses) - (360) 1,623 (1,632) 1,212 3,058 8,482
Change in unrealized gains
(losses) - (1,795) (7,081) (21,855) 30,151 152,104 8,559
--------- --------- --------- --------- --------- ---------- ---------
Change in net assets
resulting from
operations 9,192 16,851 37,499 (464) 40,266 186,850 27,401
FROM CAPITAL TRANSACTIONS
Deposits 167,498 83,674 131,579 52,568 42,708 266,005 37,371
Benefit payments (8,807) (2,069) (3,092) (7,512) (4,219) (9,022) (5,738)
Payments on termination (37,294) (11,121) (23,766) (31,874) (23,127) (66,865) (32,116)
Contract maintenance
charges (109) (94) (207) (195) (172) (565) (217)
Transfers among the
portfolios and with the
Fixed Account - net (39,281) 18,476 23,390 (37,007) (10,465) 38,681 (49,309)
--------- --------- --------- --------- --------- ---------- ---------
Change in net assets
resulting from
capital transactions 82,007 88,866 127,904 (24,020) 4,725 228,234 (50,009)
--------- --------- --------- --------- --------- ---------- ---------
INCREASE (DECREASE) IN
NET ASSETS 91,199 105,717 165,403 (24,484) 44,991 415,084 (22,608)
NET ASSETS AT BEGINNING
OF PERIOD 209,635 122,467 285,780 439,955 301,248 728,460 410,121
--------- --------- --------- --------- --------- ---------- ---------
NET ASSETS AT END
OF PERIOD $ 300,834 $ 228,184 $ 451,183 $ 415,471 $ 346,239 $1,143,544 $ 387,513
--------- --------- --------- --------- --------- ---------- ---------
--------- --------- --------- --------- --------- ---------- ---------
CONTRACTS WITHOUT THE
DEATH BENEFIT OPTIONS
Net asset value per unit
at end of period $ 12.08 $ 24.15 $ 28.67 $ 16.40 $ 19.20 $ 26.30 $ 19.30
--------- --------- --------- --------- --------- ---------- ---------
--------- --------- --------- --------- --------- ---------- ---------
Units outstanding at end
of period 21,477 7,989 13,438 24,233 17,132 38,903 19,259
--------- --------- --------- --------- --------- ---------- ---------
--------- --------- --------- --------- --------- ---------- ---------
CONTRACTS WITH THE
DEATH BENEFIT OPTIONS
Net asset value per unit
at end of period $ 12.07 $ 24.11 $ 28.63 $ 16.38 $ 19.17 $ 26.26 $ 19.27
--------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- ---------
Units outstanding at
end of period 3,424 1,463 2,303 1,096 904 4,587 823
--------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- ---------
</TABLE>
<TABLE>
<CAPTION>
Dean Witter Variable Investment Series Portfolios
-----------------------------------------------------------------------------
Global
European Capital Dividend Pacific
Growth Growth Growth Growth Total
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income
(loss) $ 7,751 $ 431 $ 7,678 $ (422) $ 160,567
Net realized gains
(losses) 1,911 1,890 407 180 16,771
Change in unrealized
gains (losses) 43,165 3,981 28,418 449 236,096
--------- --------- --------- --------- ----------
Change in net assets
resulting from
operations 52,827 6,302 36,503 207 413,434
FROM CAPITAL TRANSACTIONS
Deposits 54,928 18,649 76,120 37,469 968,569
Benefit payments (1,847) (736) (2,137) (1,002) (46,181)
Payments on termination (15,391) (5,821) (14,070) (7,379) (268,824)
Contract maintenance
charges (127) (39) (151) (74) (1,950)
Transfers among the
portfolios and with the
Fixed Account - net 16,815 1,244 26,476 14,897 3,917
--------- --------- --------- --------- ----------
Change in net assets
resulting from
capital transactions 54,378 13,297 86,238 43,911 655,531
--------- --------- --------- --------- ----------
INCREASE (DECREASE) IN
NET ASSETS 107,205 19,599 122,741 44,118 1,068,965
NET ASSETS AT BEGINNING
OF PERIOD 164,100 58,995 184,723 86,208 2,991,692
--------- --------- --------- --------- ----------
NET ASSETS AT END OF
PERIOD $ 271,305 $ 78,594 $ 307,464 $ 130,326 $4,060,657
--------- --------- --------- --------- ----------
--------- --------- --------- --------- ----------
CONTRACTS WITHOUT THE
DEATH BENEFIT OPTIONS
Net asset value per unit
at end of period $ 24.33 $ 16.42 $ 13.84 $ 9.86
--------- --------- --------- ---------
--------- --------- --------- ---------
Units outstanding at
end of period 10,007 4,278 19,847 11,811
--------- --------- --------- ---------
--------- --------- --------- ---------
CONTRACTS WITH THE
DEATH BENEFIT OPTIONS
Net asset value per unit
at end of period $ 24.30 $ 16.40 $ 13.82 $ 9.84
--------- --------- --------- ---------
--------- --------- --------- ---------
Units outstanding at
end of period 1,144 509 2,364 1,412
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
See notes to financial statements.
<PAGE>
NORTHBROOK VARIABLE ANNUITY ACCOUNT II
NOTES TO FINANCIAL STATEMENTS
TWO YEARS ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------
1. ORGANIZATION
Northbrook Variable Annuity Account II (the "Account"), a unit investment
trust registered with the Securities and Exchange Commission under the
Investment Company Act of 1940, is a Separate Account of Northbrook Life
Insurance Company ("Northbrook Life"). The assets of the Account are
legally segregated from those of Northbrook Life. Northbrook Life is
wholly owned by Allstate Life Insurance Company ("Allstate Life"), a wholly
owned subsidiary of Allstate Insurance Company, which is wholly owned by
The Allstate Corporation.
Northbrook Life writes certain annuity contracts, the proceeds of which are
invested at the direction of the contractholder. Contractholders primarily
invest in units of the portfolios comprising the Account, for which they
bear all of the investment risk, but may also invest in the general account
of Northbrook Life. The Account, in turn, invests in shares of the
portfolios of the Dean Witter Variable Investment Series ("Fund").
Northbrook Life provides administrative and insurance services to the
Account for a fee.
Dean Witter Reynolds, Inc. ("Dean Witter"), a wholly owned subsidiary of
Morgan Stanley, Dean Witter, Discover & Co., is the sole distributor of
Northbrook Life's flexible premium deferred variable annuity contracts and
certain single and flexible premium annuities. Dean Witter InterCapital,
Inc. ("InterCapital"), a wholly owned subsidiary of Morgan Stanley, Dean
Witter, Discover & Co., is the investment manager for the Fund. In October
1993, Allstate Life and Northbrook Life announced a strategic alliance to
develop, market and distribute proprietary annuity and life insurance
products through Dean Witter account executives. InterCapital receives
investment management fees from the Fund.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
VALUATION OF INVESTMENTS - Investments consist of shares in the portfolios
of the Fund and are stated at fair value based on quoted market prices.
RECOGNITION OF INVESTMENT INCOME - Investment income consists of dividends
declared by the portfolios of the Fund and is recognized on the date of
record.
REALIZED GAINS AND LOSSES - Realized gains and losses represent the
difference between the proceeds from sales of shares by the Account and the
cost of such shares, which is determined on a weighted average basis.
CONTRACTHOLDER ACCOUNT ACTIVITY - Account activity is reflected in
individual contractholder accounts on a daily basis.
FEDERAL INCOME TAXES - The Account is intended to qualify as a segregated
asset account as defined in the Internal Revenue Code ("Code"). As such,
the operations of the Account are included with and taxed
<PAGE>
as a part of Northbrook Life. Northbrook Life is taxed as a life insurance
company under the Code. Under current law, no federal income taxes are
payable by the Account.
ACCOUNT VALUE - Certain calculations that could be made in the financial
statements may differ from published amounts due to truncation of actual
Account values.
3. CONTRACT MAINTENANCE, MORTALITY AND EXPENSE RISK, ADMINISTRATIVE EXPENSE,
AND ENHANCED DEATH BENEFIT CHARGES
For each year or portion of a year a contract is in effect, Northbrook Life
deducts a fixed annual contract maintenance charge of $30 as reimbursement
for expenses related to the maintenance of each contract and the Account.
The amount of this charge is guaranteed not to increase over the life of
the contract.
Northbrook Life assumes mortality and expense risks related to the
operations of the Account and deducts charges daily at a rate equal to
1.25% per annum of the daily net assets of the Account. Northbrook Life
guarantees that the amount of this charge will not increase over the life
of the contract.
Northbrook Life deducts administrative expense charges daily at a rate
equal to .10% per annum of the daily net assets of the Account. This
charge is designed to cover administrative expenses.
Northbrook Life offers contractholders the choice of two death benefit
options. The Enhanced Death Benefit option guarantees that the death
benefit will provide a cumulative return greater than or equal to a
specified level, while the Performance Death Benefit option guarantees that
the death benefit will not be less than the contract's highest value on any
anniversary (collectively, "Death Benefit Options"). For either death
benefit, Northbrook Life deducts daily an additional charge equal to .13%
per annum of the daily net assets of the Account which are attributable to
contractholders who have elected the optional death benefit.
4. FINANCIAL INSTRUMENTS
The investments of the Separate Accounts are carried at fair value, based
upon quoted market prices. Accrued contract maintenance charges are of a
short-term nature. It is assumed that their carrying value approximates
fair value.
<PAGE>
5. UNITS ISSUED AND REDEEMED
Units issued and redeemed by the Account during 1997 for contracts with and
without the Death Benefit Options were as follows:
<TABLE>
<CAPTION>
DEAN WITTER VARIABLE INVESTMENT SERIES PORTFOLIOS
--------------------------------------------------------------------------------
(Units in thousands) QUALITY
MONEY HIGH INCOME DIVIDEND
MARKET YIELD EQUITY PLUS STRATEGIST GROWTH UTILITIES
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CONTRACTS WITHOUT THE
DEATH BENEFIT OPTIONS
Units outstanding at
beginning of period 21,477 7,989 13,438 24,233 17,132 38,903 19,259
Unit activity during 1997:
Issued 13,675 2,640 3,203 1,824 2,408 7,783 759
Redeemed (16,530) (1,834) (3,132) (5,223) (3,391) (7,021) (4,848)
------- ------- ------- ------- ------- ------- -------
Units outstanding at
end of period 18,622 8,795 13,509 20,834 16,149 39,665 15,170
------- ------- ------- ------- ------- ------- -------
CONTRACTS WITH THE
DEATH BENEFIT OPTIONS
Units outstanding at
beginning of period 3,424 1,463 2,303 1,096 904 4,587 823
Unit activity during 1997:
Issued 9,358 2,883 3,851 2,005 2,953 10,318 1,131
Redeemed (7,375) (502) (699) (400) (328) (935) (200)
------- ------- ------- ------- ------- ------- -------
Units outstanding at
end of period 5,407 3,844 5,455 2,701 3,529 13,970 1,754
------- ------- ------- ------- ------- ------- -------
<CAPTION>
DEAN WITTER VARIABLE INVESTMENT SERIES PORTFOLIOS
-------------------------------------------------------------------
(Units in thousands) GLOBAL
EUROPEAN CAPITAL DIVIDEND PACIFIC CAPITAL INCOME
GROWTH GROWTH GROWTH GROWTH APPRECIATION BUILDER
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CONTRACTS WITHOUT THE
DEATH BENEFIT OPTIONS
Units outstanding at
beginning of period 10,007 4,278 19,847 11,811 - -
Unit activity during 1997:
Issued 2,051 1,203 5,450 2,237 1,908 2,541
Redeemed (2,296) (1,012) (3,641) (5,858) (299) (178)
------- ------- ------- ------- ------- -------
Units outstanding at
end of period 9,762 4,469 21,656 8,190 1,609 2,363
------- ------- ------- ------- ------- -------
CONTRACTS WITH THE
DEATH BENEFIT OPTIONS
Units outstanding at
beginning of period 1,144 509 2,364 1,412 - -
Unit activity during 1997:
Issued 2,332 1,051 5,991 2,560 1,266 2,086
Redeemed (385) (195) (566) (1,867) (118) (61)
------- ------- ------- ------- ------- -------
Units outstanding at
end of period 3,091 1,365 7,789 2,105 1,148 2,025
------- ------- ------- ------- ------- -------
</TABLE>
Units relating to accrued contract maintenance charges are included in units
redeemed.
******
<PAGE>
PART C
OTHER INFORMATION
24A. FINANCIAL STATEMENTS
Northbrook Life Insurance Company Financial Statements and Northbrook
Variable Annuity Account II Financial Statements are included in Part B of this
Registration Statement.
24B. EXHIBITS
The following exhibits, correspond to those required by paragraph (b) of
item 24 as to exhibits in Form N-4:
(1) Resolution of the Board of Directors of Northbrook Life Insurance
Company authorizing establishment of the Variable Annuity Account II*
(2) Not Applicable
(3)(a) Underwriting Agreement*
(b) Form of General Agency Agreement*
(4)(a) Form of Contract and Certificate Amendments*,**,***
(5) Form of application for a Contract*
(6)(a) Articles of Incorporation of Northbrook Life Insurance Company*
(b) By-laws of Northbrook Life Insurance Company*
(7) Not applicable
(8) Form of Participation Agreement****
(9) Opinion of Robert S. Seiler, Senior Vice President, Secretary and
General Counsel of Northbrook Life Insurance Company*
(10)(a) Consent of Accountants
(b) Consent of Attorneys*****
(11) Not applicable
(12) Form of Agreement to Purchase Shares*
(13) Performance Data Calculations
(99) Powers of Attorney*
- ------------------------
* Previously filed in Form N-4 Registration Statement No. 33-35412 dated
December 31, 1996 and incorporated by reference.
** Previously filed in Form N-4 Registration Statement No. 33-35412 dated
February 28, 1997 and incorporated by reference.
*** Previously filed in Form N-4 Registration Statement No. 33-35412 dated
November 20, 1997 and incorporated by reference.
**** Previously filed in Form N-4 Registration Statement No. 33-35412 dated
April 30, 1996 and incorporated by reference.
***** Previously filed in Form N-4 Registration Statement No. 33-35412 dated
June 14, 1990 and incorporated by reference.
<PAGE>
25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
<TABLE>
<CAPTION>
NAME AND PRINCIPAL
BUSINESS ADDRESS POSITION AND OFFICE WITH DEPOSITOR OF THE TRUST
- ------------------ -----------------------------------------------
<S> <C>
Louis G. Lower, II Chairman of the Board of Directors and Chief Executive Officer
Michael J. Velotta Director, Vice President, Secretary and General Counsel
Peter H. Heckman Director, President and Chief Operating Officer
Marla G. Friedman Vice President
John R. Hunter Director and Assistant Vice President
Kevin R. Slawin Director and Vice President
Casey J. Sylla Director and Chief Investment Officer
Karen C. Gardner Vice President
James P. Zils Treasurer
Keith A. Hauschildt Assistant Vice President and Controller
Sarah R. Donahue Assistant Vice President
Ronald Johnson Assistant Vice President
Barry S. Paul Assistant Vice President
Emma M. Kalaidjian Assistant Secretary
Paul N. Kierig Assistant Secretary
Mary J. McGinn Assistant Secretary
Robert N. Roeters Assistant Vice President
Brenda D. Sneed Assistant Secretary and Assistant General Counsel
C. Nelson Strom Assistant Vice President and Corporate Actuary
Charles F. Thalheimer Assistant Vice President
Nancy M. Bufalino Assistant Treasurer
Patricia A. Wilson Assistant Vice President, Assistant Secretary and Assistant Treasurer
</TABLE>
The principal business address of the foregoing officers and directors is
3100 Sanders Road, Northbrook, Illinois 60062.
26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH DEPOSITOR OR REGISTRANT
See 10-K Commission File #1-11840, The Allstate Corporation.
27. NUMBER OF CONTRACT OWNERS
As of December 31, 1997 there were in force 13,838 qualified and 75,462
non-qualified contracts. The Registrant began operations on October 25, 1990.
28. INDEMNIFICATION
The General Agency Agreement (Exhibit 3(b)) has a provision in which
Northbrook Life agrees to indemnify Dean Witter Reynolds as Underwriter for
certain damages and expenses that may be caused by actions, statements or
omissions by Northbrook Life. The Agreement to Purchase Shares contains a
similar provision in paragraph 16 of Exhibit 12.
<PAGE>
Insofar as indemnification for liability arising out of the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than payment by the registrant of expenses incurred by a
director, officer or controlling person of the registrant in the successful
defense of any action, suit, or proceeding) is asserted such director, officer
or controlling person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final adjudication of such
issue.
29A. RELATIONSHIP OF PRINCIPAL UNDERWRITER TO OTHER INVESTMENT COMPANIES
Dean Witter Reynolds Inc. is the principal underwriter for the following
investment companies:
Dean Witter Offshore Money Market Fund
Various Unit Investment Trusts
Various Variable Annuities
29B. PRINCIPAL UNDERWRITER
<TABLE>
<CAPTION>
NAME AND PRINCIPAL BUSINESS
ADDRESS OF EACH SUCH PERSON POSITIONS AND OFFICES WITH UNDERWRITER
- --------------------------- --------------------------------------
<S> <C>
Dean Witter Reynolds Inc. Underwriter
("Dean Witter")
Philip J. Purcell Chairman, Chief Executive Officer and Director
Richard M. Demartini President, Chief Operating Officer and Director,
Dean Witter Capital
James F. Higgins President and Chief Operating Officer and Director,
Dean Witter Financial
Stephen R. Miller Senior Executive Vice President and Director
Raymond J. Drop Executive Vice President
Robert J. Dwyer Executive Vice President, National Sales Director
and Director
Christine A. Edwards Executive Vice President, Secretary, General Counsel
and Director
Charles A. Fiumefreddo Executive Vice President and Director
Frederick J. Frohne Executive Vice President
Alfred J. Golden Executive Vice President
E. Davisson Hardman, Jr. Executive Vice President
<PAGE>
Mitchell M. Merin Executive Vice President, Chief Administrative Officer
and Director
Laurence E. Mollner Executive Vice President
Jeremiah A. Mullins Executive Vice President
Richard F. Powers, III Executive Vice President and Director
John H. Schaefer Executive Vice President
Thomas C. Schneider Executive Vice President, Chief Financial Officer and
Director
Robert B. Sculthorpe Executive Vice President
William B. Smith Executive Vice President and Director
Samule H. Wolcott, III Executive Vice President
Anthony Basile Senior Vice President
Ronald T. Carman Senior Vice President, Associate General Counsel
and Assistant Secretary
Michael T. Cunningham Senior Vice President
Mary E. Curran Senior Vice President
David Diaz Senior Vice President
Raymond F. Douglas Senior Vice President
Paul J. Dubow Senior Vice President and Deputy General Counsel
Michael T. Gregg Senior Vice President and Deputy General Counsel
Erick R. Holt Senior Vice President and Assistant Secretary
Birendra Kumar Senior Vice President and Treasurer
George R. Ross Senior Vice President
Robert P. Seass Senior Vice President
Joseph G. Siniscalchi Senior Vice President and Controller, Dean Witter
Financial
Michael H. Stone Senior Vice President
Lawrence Volpe Senior Vice President and Controller, Dean Witter
Reynolds Inc. and Dean Witter Capital
Lorena J. Kern Senior Vice President
Kathryn M. McNamara Senior Vice President and Director of Governmental
Affairs
Michael D. Browne Assistant Secretary
Linda M. Butler Assistant Secretary
Marilyn Cranney Assistant Secretary
Sheldon Curtis Assistant Secretary
Barry Fink Assistant Secretary
Sabrina Hurley Assistant Secretary
Barbara B. Kiley Assistant Secretary
</TABLE>
The principal business address of Dean Witter and the foregoing directors
and officers is Two World Trade Center, New York, New York 10048.
<PAGE>
29C. COMPENSATION OF DEAN WITTER
The following commissions and other compensation were received by each
principal underwriter, directly or indirectly, from the Registrant during the
Registrant's last fiscal year:
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5)
NET COMPENSATION
UNDERWRITING OR REDEMPTION
NAME OF DISCOUNTS AND OR BROKERAGE
PRINCIPAL COMMISSIONS ANNUITIZATION COMMISSIONS COMPENSATION
- ------------- ------------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
Dean Witter
Reynolds Inc. $81,393,283
</TABLE>
30. LOCATION OF ACCOUNTS AND RECORDS
Northbrook Life Insurance Company
3100 Sanders Road
Northbrook, Illinois 60062
31. MANAGEMENT SERVICES
None
32. UNDERTAKINGS
The Registrant promises to file a post-effective amendment to this
Registration Statement as frequently as is necessary to ensure that the audited
financial statements in the Registration Statement are never more than 16 months
old for so long as payments under the variable annuity contracts may be
accepted. Registrant furthermore agrees to include either as part of any
application to purchase a contract offered by the prospectus, a space that an
applicant can check to request a Statement of Additional Information or a post
card or similar written communication affixed to or included in the Prospectus
that the applicant can remove to send for a Statement of Additional Information.
Finally, the Registrant agrees to deliver any Statement of Additional
Information and any Financial Statements required to be made available under
this Form N-4 promptly upon written or oral request.
33. REPRESENTATIONS PURSUANT TO SECTION 403(B) OF THE INTERNAL REVENUE CODE
The Company represents that it is relying upon a November 28, 1988
Securities and Exchange Commission no-action letter issued to the American
Council of Life Insurance ("ACLI") and that the provisions of paragraphs 1-4 of
the no-action letter have been complied with.
34. REPRESENTATION REGARDING CONTRACT EXPENSES
Northbrook Life Insurance Company ("Northbrook Life") represents that the
fees and charges deducted under the Group and Individual Variable Annuity
Contracts hereby registered by this Registration Statement, in the aggregate,
are reasonable in relation to the services rendered, the expenses expected to be
incurred, and the risks assumed by Northbrook Life.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant, Northbrook Variable Annuity Account II, certifies that it
meets the requirements of Securities Act Rule 485 (b) for effectiveness of this
amended Registration Statement and has caused this amended Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, and its seal to be hereunto affixed and attested, all in the
Township of Northfield, State of Illinois, on the 3rd day of March, 1998.
NORTHBROOK VARIABLE ANNUITY ACCOUNT II
(REGISTRANT)
BY: NORTHBROOK LIFE INSURANCE COMPANY
(DEPOSITOR)
(SEAL)
Attest: /S/ BRENDA D. SNEED By: /S/ MICHAEL J. VELOTTA
--------------------------- ------------------------------------
Brenda D. Sneed Michael J. Velotta
Assistant Secretary Vice President, Secretary and
And Assistant General Counsel General Counsel
As required by the Securities Act of 1933, this amended Registration Statement
has been duly signed below by the following Directors and Officers of
Northbrook Life Insurance Company on the 3rd day of March, 1998.
*/LOUIS G. LOWER, II Chairman of the Board of Directors and
- ------------------------ Chief Executive Officer
Louis G. Lower, II (Principal Executive Officer)
/S/ MICHAEL J. VELOTTA Vice President, Secretary, General
- ------------------------ Counsel and Director
Michael J. Velotta
*/PETER H. HECKMAN President, Chief Operating Officer
- ------------------------ and Director
Peter H. Heckman
*/JOHN R. HUNTER Assistant Vice President
- ------------------------ and Director
John R. Hunter
<PAGE>
*/KEVIN R. SLAWIN Vice President and Director
- ------------------------ (Principal Financial Officer)
Kevin R. Slawin
*/CASEY J. SYLLA Chief Investment Officer and Director
- ------------------------
Casey J. Sylla
*/MARLA G. FRIEDMAN Vice President
- ------------------------
Marla G. Friedman
*/KAREN C. GARDNER Vice President
- ------------------------
Karen C. Gardner
*/JAMES P. ZILS Treasurer
- ------------------------
James P. Zils
*/KEITH A. HAUSCHILDT Assistant Vice President and Controller
- ------------------------ (Principal Accounting Officer)
Keith A. Hauschildt
*/ By Michael J. Velotta, pursuant to Power of Attorney, previously filed.
<PAGE>
Exhibit 10(a)
INDEPENDENT AUDITORS' CONSENT
We consent to the use in this Post-Effective Amendment No. 16 to Registration
Statement No. 033-35412 of Northbrook Variable Annuity Account II of Northbrook
Life Insurance Company on Form N-4 of our report February 20, 1998, relating to
the financial statements of Northbrook Variable Annuity Account II for the year
ended December 31, 1997, contained in the Statement of Additional Information,
which is part of this Registration Statement, and to the reference to us under
the heading "Experts" in such Registration Statement.
/s/ Deloitte & Touche LLP
Chicago, Illinois
February 26, 1998
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII MONEY MARKET
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 12.083835 82.75518492
FEE 12/31/97 0.448 12.545891 0.035708903
RESULTING VALUE 12/31/97 12.545891 82.71947602 1037.79
1
FORMULA: 1000*(1+T)= $ 1,037.79 - (0.85 * 1000 * 0.05)
= $ 995.29
T = -0.47%
R = -0.47%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII HIGH YIELD
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 24.14829 41.41079969
FEE 12/31/97 0.448 26.651638 0.016809473
RESULTING VALUE 12/31/97 26.651638 41.39399021 1103.218
1
FORMULA: 1000*(1+T)= $ 1,103.22 - (0.85 * 1000 * 0.05)
= $ 1,060.72
T = 6.07%
R = 6.07%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 28.669371 34.88043041
FEE 12/31/97 0.448 38.873354 0.011524604
RESULTING VALUE 12/31/97 38.873354 34.8689058 1355.471
1
FORMULA: 1000*(1+T)= $ 1,355.47 - (0.85 * 1000 * 0.05)
= $ 1,312.97
T = 31.30%
R = 31.30%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII QUALITY INCOME
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 16.403816 60.96142507
FEE 12/31/97 0.448 17.982521 0.024913081
RESULTING VALUE 12/31/97 17.982521 60.93651199 1095.792
1
FORMULA: 1000*(1+T)= $ 1,095.79 - (0.85 * 1000 * 0.05)
= $ 1,053.29
T = 5.33%
R = 5.33%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII STRATEGIST
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 19.1987 52.08686005
FEE 12/31/97 0.448 21.539863 0.020798647
RESULTING VALUE 12/31/97 21.539863 52.0660614 1121.496
1
FORMULA: 1000*(1+T)= $ 1,121.50 - (0.85 * 1000 * 0.05)
= $ 1,079.00
T = 7.90%
R = 7.90%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII DIVIDEND GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 26.298448 38.0250576
FEE 12/31/97 0.448 32.589936 0.013746575
RESULTING VALUE 12/31/97 32.589936 38.01131103 1238.786
1
FORMULA: 1000*(1+T)= $ 1,238.79 - (0.85 * 1000 * 0.05)
= $ 1,196.29
T = 19.63%
R = 19.63%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII UTILITIES
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 19.297511 51.82015442
FEE 12/31/97 0.448 24.208448 0.018505936
RESULTING VALUE 12/31/97 24.208448 51.80164849 1254.038
1
FORMULA: 1000*(1+T)= $ 1,254.04 - (0.85 * 1000 * 0.05)
= $ 1,211.54
T = 21.15%
R = 21.15%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EUROPEAN GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 24.33484 41.093346
FEE 12/31/97 0.448 27.870064 0.016074595
RESULTING VALUE 12/31/97 27.870064 41.07727141 1144.826
1
FORMULA: 1000*(1+T)= $ 1,144.83 - (0.85 * 1000 * 0.05)
= $ 1,102.33
T = 10.23%
R = 10.23%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 16.421498 60.89578429
FEE 12/31/97 0.448 20.17734 0.022203125
RESULTING VALUE 12/31/97 20.17734 60.87358117 1228.267
1
FORMULA: 1000*(1+T)= $ 1,228.27 - (0.85 * 1000 * 0.05)
= $ 1,185.77
T = 18.58%
R = 18.58%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII PACIFIC GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 9.858203 101.4383656
FEE 12/31/97 0.448 6.059243 0.073936629
RESULTING VALUE 12/31/97 6.059243 101.364429 614.1917
1
FORMULA: 1000*(1+T)= $ 614.19 - (0.85 * 1000 * 0.05)
= $ 571.69
T = -42.83%
R = -42.83%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII GLOBAL DIVIDEND GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 13.844714 72.22973331
FEE 12/31/97 0.448 15.303559 0.029274236
RESULTING VALUE 12/31/97 15.303559 72.20045908 1104.924
1
FORMULA: 1000*(1+T)= $ 1,104.92 - (0.85 * 1000 * 0.05)
= $ 1,062.42
T = 6.24%
R = 6.24%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL APPRECIATION
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 #VALUE! #VALUE!
FEE 12/31/97 0.448 11.176955 0.040082473
RESULTING VALUE 12/31/97 11.176955 #VALUE! #VALUE!
1
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INCOME BUILDER
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 #VALUE! #VALUE!
FEE 12/31/97 0.448 12.083732 0.037074639
RESULTING VALUE 12/31/97 12.083732 #VALUE! #VALUE!
1
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 #VALUE! #VALUE!
FEE 12/31/97 0.448 13.127931 0.034125713
RESULTING VALUE 12/31/97 13.127931 #VALUE! #VALUE!
1
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII INTERNATIONAL MAGNUM
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 #VALUE! #VALUE!
FEE 12/31/97 0.448 10.588201 0.042311248
RESULTING VALUE 12/31/97 10.588201 #VALUE! #VALUE!
1
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING MARKETS
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 9.764247 102.4144514
FEE 12/31/97 0.448 9.662961 0.0463626
RESULTING VALUE 12/31/97 9.662961 102.3680888 989.1788
1
FORMULA: 1000*(1+T)= $ 989.18 - (0.85 * 1000 * 0.05)
= $ 946.68
T = -5.33%
R = -5.33%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 13.386945 74.69964208
FEE 12/31/97 0.448 15.905074 0.028167112
RESULTING VALUE 12/31/97 15.905074 74.67147496 1187.655
1
FORMULA: 1000*(1+T)= $ 1,187.66 - (0.85 * 1000 * 0.05)
= $ 1,145.16
T = 14.52%
R = 14.52%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII MONEY MARKET
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 10.764714 92.89610481
FEE 12/31/93 0.448 10.913226 0.041051106
FEE 12/31/94 0.448 11.182786 0.040061573
FEE 12/31/95 0.448 11.65311 0.038444673
FEE 12/31/96 0.448 12.083835 0.037074323
FEE 12/31/97 0.448 12.545891 0.035708903
RESULTING VALUE 12/31/97 12.545891 92.70376423 1163.051321
5
FORMULA: 1000*(1+T)= $ 1,163.05 - (0.85 * 1000 * 0.01)
= $ 1,154.55
T = 2.92%
R = 15.46%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII HIGH YIELD
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 16.335603 61.21598327
FEE 12/31/93 0.448 20.022205 0.022375158
FEE 12/31/94 0.448 19.314985 0.023194427
FEE 12/31/95 0.448 21.859326 0.020494685
FEE 12/31/96 0.448 24.14829 0.018552038
FEE 12/31/97 0.448 26.651638 0.016809473
RESULTING VALUE 12/31/97 26.651638 61.11455749 1628.803063
5
FORMULA: 1000*(1+T)= $ 1,628.80 - (0.85 * 1000 * 0.01)
= $ 1,620.30
T = 10.13%
R = 62.03%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 16.599155 60.24403049
FEE 12/31/93 0.448 19.604447 0.022851958
FEE 12/31/94 0.448 18.189346 0.024629803
FEE 12/31/95 0.448 25.863867 0.017321462
FEE 12/31/96 0.448 28.669371 0.015626433
FEE 12/31/97 0.448 38.873354 0.011524604
RESULTING VALUE 12/31/97 38.873354 60.15207623 2338.312953
5
FORMULA: 1000*(1+T)= $ 2,338.31 - (0.85 * 1000 * 0.01)
= $ 2,329.81
T = 18.43%
R = 132.98%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII QUALITY INCOME
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 12.993017 76.96441866
FEE 12/31/93 0.448 14.486819 0.030924663
FEE 12/31/94 0.448 13.311063 0.033656215
FEE 12/31/95 0.448 16.373027 0.027362075
FEE 12/31/96 0.448 16.403816 0.027310718
FEE 12/31/97 0.448 17.982521 0.024913081
RESULTING VALUE 12/31/97 17.982521 76.8202519 1381.421793
5
FORMULA: 1000*(1+T)= $ 1,381.42 - (0.85 * 1000 * 0.01)
= $ 1,372.92
T = 6.54%
R = 37.29%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII STRATEGIST
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 14.034777 71.25157742
FEE 12/31/93 0.448 15.285892 0.02930807
FEE 12/31/94 0.448 15.687325 0.028558088
FEE 12/31/95 0.448 16.919048 0.026479031
FEE 12/31/96 0.448 19.1987 0.023334913
FEE 12/31/97 0.448 21.539863 0.020798647
RESULTING VALUE 12/31/97 21.539863 71.12309867 1531.981802
5
FORMULA: 1000*(1+T)= $ 1,531.98 - (0.85 * 1000 * 0.01)
= $ 1,523.48
T = 8.78%
R = 52.35%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII DIVIDEND GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 14.844196 67.36639694
FEE 12/31/93 0.448 16.746027 0.026752614
FEE 12/31/94 0.448 16.068087 0.027881353
FEE 12/31/95 0.448 21.504641 0.020832712
FEE 12/31/96 0.448 26.298448 0.017035226
FEE 12/31/97 0.448 32.589936 0.013746575
RESULTING VALUE 12/31/97 32.589936 67.26014846 2192.003934
5
FORMULA: 1000*(1+T)= $ 2,192.00 - (0.85 * 1000 * 0.01)
= $ 2,183.50
T = 16.90%
R = 118.35%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII UTILITIES
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 13.840391 72.25229403
FEE 12/31/93 0.448 15.797759 0.028358453
FEE 12/31/94 0.448 14.189948 0.031571645
FEE 12/31/95 0.448 17.998758 0.024890606
FEE 12/31/96 0.448 19.297511 0.023215429
FEE 12/31/97 0.448 24.208448 0.018505936
RESULTING VALUE 12/31/97 24.208448 72.12575196 1746.052516
5
FORMULA: 1000*(1+T)= $ 1,746.05 - (0.85 * 1000 * 0.01)
= $ 1,737.55
T = 11.68%
R = 73.76%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EUROPEAN GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 10.280422 97.27227151
FEE 12/31/93 0.448 14.289849 0.031350926
FEE 12/31/94 0.448 15.296029 0.029288647
FEE 12/31/95 0.448 18.975848 0.023608958
FEE 12/31/96 0.448 24.33484 0.018409819
FEE 12/31/97 0.448 27.870064 0.016074595
RESULTING VALUE 12/31/97 27.870064 97.15353856 2707.675338
5
FORMULA: 1000*(1+T)= $ 2,707.68 - (0.85 * 1000 * 0.01)
= $ 2,699.18
T = 21.97%
R = 169.92%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 12.731456 78.54561175
FEE 12/31/93 0.448 11.682455 0.038348104
FEE 12/31/94 0.448 11.32227 0.039568037
FEE 12/31/95 0.448 14.92275 0.030021276
FEE 12/31/96 0.448 16.421498 0.027281311
FEE 12/31/97 0.448 20.17734 0.022203125
RESULTING VALUE 12/31/97 20.17734 78.3881899 1581.66516
5
FORMULA: 1000*(1+T)= $ 1,581.67 - (0.85 * 1000 * 0.01)
= $ 1,573.17
T = 9.49%
R = 57.32%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII PACIFIC GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 9.129646 0.049070906
FEE 12/31/95 0.448 9.619002 0.046574478
FEE 12/31/96 0.448 9.858203 0.045444388
FEE 12/31/97 0.448 6.059243 0.073936629
RESULTING VALUE 12/31/97 6.059243 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII GLOBAL DIVIDEND GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 9.894112 0.045279455
FEE 12/31/95 0.448 11.934841 0.037537157
FEE 12/31/96 0.448 13.844714 0.032358921
FEE 12/31/97 0.448 15.303559 0.029274236
RESULTING VALUE 12/31/97 15.303559 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL APPRECIATION
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 #VALUE! #VALUE!
FEE 12/31/96 0.448 #VALUE! #VALUE!
FEE 12/31/97 0.448 11.176955 0.040082473
RESULTING VALUE 12/31/97 11.176955 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INCOME BUILDER
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 #VALUE! #VALUE!
FEE 12/31/96 0.448 #VALUE! #VALUE!
FEE 12/31/97 0.448 12.083732 0.037074639
RESULTING VALUE 12/31/97 12.083732 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 #VALUE! #VALUE!
FEE 12/31/96 0.448 #VALUE! #VALUE!
FEE 12/31/97 0.448 13.127931 0.034125713
RESULTING VALUE 12/31/97 13.127931 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII INTERNATIONAL MAGNUM
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 #VALUE! #VALUE!
FEE 12/31/96 0.448 #VALUE! #VALUE!
FEE 12/31/97 0.448 10.588201 0.042311248
RESULTING VALUE 12/31/97 10.588201 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING MARKETS
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 #VALUE! #VALUE!
FEE 12/31/96 0.448 9.764247 0.045881674
FEE 12/31/97 0.448 9.662961 0.0463626
RESULTING VALUE 12/31/97 9.662961 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 11.632799 0.038511798
FEE 12/31/96 0.448 13.386945 0.03346544
FEE 12/31/97 0.448 15.905074 0.028167112
RESULTING VALUE 12/31/97 15.905074 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII MONEY MARKET
10/25/90
TO NO. YEARS 7.18412
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/25/90 1000 10 100
1 FEE 10/25/91 0.448 10.484979 0.042727792 0.06
2 FEE 10/25/92 0.448 10.732236 0.041743398 0.05
3 FEE 10/25/93 0.448 10.885812 0.041154486 0.04
4 10/25/94 0.448 11.106634 0.040336253 0.03
5 10/25/95 0.448 11.572726 0.038711709 0.02
6 10/25/96 0.448 12.003612 0.037322099 0.01
7 10/25/97 0.448 12.456143 0.03596619 0
8 12/31/97 0.448 12.545891 0.035708903 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 12.545891 99.68632917 1250.65382
7.18412
FORMULA: 1000*(1+T)= 1250.65382
= 1250.65382
T = 0.0316
R = 0.2507
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII HIGH YIELD
10/25/90
TO NO. YEARS 7.18412
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/25/90 1000 10 100
1 FEE 10/25/91 0.448 13.900601 0.032228822 0.06
2 FEE 10/25/92 0.448 16.311352 0.027465534 0.05
3 FEE 10/25/93 0.448 19.350163 0.02315226 0.04
4 10/25/94 0.448 19.319826 0.023188615 0.03
5 10/25/95 0.448 21.533545 0.020804749 0.02
6 10/25/96 0.448 23.660974 0.018934132 0.01
7 10/25/97 0.448 26.41058 0.016962899 0
8 12/31/97 0.448 26.651638 0.016809473 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 26.651638 99.82045352 2660.378592
7.18412
FORMULA: 1000*(1+T)= 2660.378592
= 2660.378592
T = 0.1459
R = 1.6604
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY
10/25/90
TO NO. YEARS 7.18412
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/25/90 1000 10 100
1 FEE 10/25/91 0.448 14.558444 0.030772519 0.06
2 FEE 10/25/92 0.448 15.176037 0.029520223 0.05
3 FEE 10/25/93 0.448 19.940376 0.022466979 0.04
4 10/25/94 0.448 18.441703 0.024292767 0.03
5 10/25/95 0.448 24.16712 0.018537583 0.02
6 10/25/96 0.448 27.938718 0.016035095 0.01
7 10/25/97 0.448 38.175337 0.011735325 0
8 12/31/97 0.448 38.873354 0.011524604 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 38.873354 99.8351149 3880.925763
7.18412
FORMULA: 000*(1+T)= 3880.925763
= 3880.925763
T = 0.2078
R = 2.8809
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII QUALITY INCOME
10/25/90
TO NO. YEARS 7.18412
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/25/90 1000 10 100
1 FEE 10/25/91 0.448 11.516999 0.038899022 0.06
2 FEE 10/25/92 0.448 12.659574 0.035388237 0.05
3 FEE 10/25/93 0.448 14.651036 0.030578042 0.04
4 10/25/94 0.448 13.141206 0.034091239 0.03
5 10/25/95 0.448 15.793355 0.02836636 0.02
6 10/25/96 0.448 16.148615 0.027742317 0.01
7 10/25/97 0.448 17.588903 0.025470605 0
8 12/31/97 0.448 17.982521 0.024913081 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 17.982521 99.7545511 1793.83831
7.18412
FORMULA: 1000*(1+T)= 1793.83831
= 1793.83831
T = 0.0847
R = 0.7938
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII STRATEGIST
10/25/90
TO NO. YEARS 7.18412
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/25/90 1000 10 100
1 FEE 10/25/91 0.448 12.36417 0.03623373 0.06
2 FEE 10/25/92 0.448 13.52122 0.033133105 0.05
3 FEE 10/25/93 0.448 15.087496 0.029693463 0.04
4 10/25/94 0.448 15.588566 0.028739013 0.03
5 10/25/95 0.448 16.438719 0.027252732 0.02
6 10/25/96 0.448 18.442834 0.024291278 0.01
7 10/25/97 0.448 21.645297 0.020697337 0
8 12/31/97 0.448 21.539863 0.020798647 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 21.539863 99.7791607 2149.229452
7.18412
FORMULA: 1000*(1+T)= 2149.229452
= 2149.229452
T = 0.1124
R = 1.1492
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII DIVIDEND GROWTH
10/25/90
TO NO. YEARS 7.18412
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/25/90 1000 10 100
1 FEE 10/25/91 0.448 13.078903 0.034253637 0.06
2 FEE 10/25/92 0.448 14.34414 0.031232266 0.05
3 FEE 10/25/93 0.448 16.443098 0.027245474 0.04
4 10/25/94 0.448 16.165797 0.027712831 0.03
5 10/25/95 0.448 20.140294 0.022243965 0.02
6 10/25/96 0.448 24.878626 0.018007425 0.01
7 10/25/97 0.448 32.326525 0.013858588 0
8 12/31/97 0.448 32.589936 0.013746575 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 32.589936 99.81169924 3252.85689
7.18412
FORMULA: 1000*(1+T)= 3252.85689
= 3252.85689
T = 0.1784
R = 2.2529
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII UTILITIES
10/25/90
TO NO. YEARS 7.18412
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/25/90 1000 10 100
1 FEE 10/25/91 0.448 11.620536 0.038552439 0.06
2 FEE 10/25/92 0.448 12.997689 0.034467666 0.05
3 FEE 10/25/93 0.448 16.219874 0.027620437 0.04
4 10/25/94 0.448 14.343211 0.031234289 0.03
5 10/25/95 0.448 17.023609 0.026316394 0.02
6 10/25/96 0.448 18.520112 0.024189919 0.01
7 10/25/97 0.448 21.894505 0.020461755 0
8 12/31/97 0.448 24.208448 0.018505936 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 24.208448 99.77865117 2415.486288
7.18412
FORMULA: 1000*(1+T)= 2415.486288
= 2415.486288
T = 0.1306
R = 1.4155
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EUROPEAN GROWTH
03/01/91
TO NO. YEARS 6.836413
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 03/01/91 1000 10 100
1 FEE 03/01/92 0.448 10.306403 0.043468124 0.06
2 FEE 03/01/93 0.448 10.74421 0.041696877 0.05
3 FEE 03/01/94 0.448 14.776559 0.03031829 0.04
4 03/01/95 0.448 15.668384 0.02859261 0.03
5 03/01/96 0.448 19.936189 0.022471697 0.02
6 03/01/97 0.448 24.428221 0.018339444 0.01
7 12/31/97 0.448 27.870064 0.016074595 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 27.870064 99.79903836 2781.405586
6.836413
FORMULA: 1000*(1+T)= 2781.405586
= 2781.405586
T = 0.1614
R = 1.7814
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL GROWTH
03/01/91
TO NO. YEARS 6.836413
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 03/01/91 1000 10 100
1 FEE 03/01/92 0.448 12.141744 0.0368975 0.06
2 FEE 03/01/93 0.448 11.843745 0.037825873 0.05
3 FEE 03/01/94 0.448 11.745794 0.038141313 0.04
4 03/01/95 0.448 12.152051 0.036866205 0.03
5 03/01/96 0.448 15.739179 0.028464001 0.02
6 03/01/97 0.448 16.887591 0.026528354 0.01
7 12/31/97 0.448 20.17734 0.022203125 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 20.17734 99.77307363 2013.155229
6.836413
FORMULA: 1000*(1+T)= 2013.155229
= 2013.155229
T = 0.1078
R = 1.0132
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII PACIFIC GROWTH
02/22/94
TO NO. YEARS 3.854894
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 02/22/94 1000 10 100
1 FEE 02/22/95 0.448 8.627411 0.051927513 0.06
2 FEE 02/22/96 0.448 10.401149 0.043072164 0.05
3 FEE 02/22/97 0.448 9.957804 0.044989839 0.04
4 12/31/97 0.448 6.059243 0.073936629 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 6.059243 99.78607385 604.6280695
3.854894
FORMULA: 1000*(1+T)= 604.6280695
= 579.1280695
T = -0.1321
R = -0.4209
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII GLOBAL DIVIDEND GROWTH
02/22/94
TO NO. YEARS 3.854894
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 02/22/94 1000 10 100
1 FEE 02/22/95 0.448 9.976816 0.044904106 0.06
2 FEE 02/22/96 0.448 12.277775 0.036488696 0.05
3 FEE 02/22/97 0.448 13.891783 0.03224928 0.04
4 12/31/97 0.448 15.303559 0.029274236 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 15.303559 99.85708368 1528.168772
3.854894
FORMULA: 1000*(1+T)= 1528.168772
= 1502.668772
T = 0.1114
R = 0.5027
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL APPRECIATION
01/21/97
TO NO. YEARS 0.941821
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 01/21/97 1000 10 100
1 FEE 12/31/97 0.448 11.176955 0.040082473 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 11.176955 99.95991753 1117.2475
0.941821
FORMULA: 1000*(1+T)= 1117.2475
= 1066.2475
T = 0.0705
R = 0.0662
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INCOME BUILDER
01/21/97
TO NO. YEARS 0.941821
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 01/21/97 1000 10 100
1 FEE 12/31/97 0.448 12.083732 0.037074639 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 12.083732 99.96292536 1207.9252
0.941821
FORMULA: 1000*(1+T)= 1207.9252
= 1156.9252
T = 0.1674
R = 0.1569
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY GROWTH
01/02/97
TO NO. YEARS 0.99384
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 01/02/97 1000 10 100
1 FEE 12/31/97 0.448 13.127931 0.034125713 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 13.127931 99.96587429 1312.3451
0.99384
FORMULA: 1000*(1+T)= 1312.3451
= 1261.3451
T = 0.2632
R = 0.2613
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INTERNATIONAL MAGNUM
01/02/97
TO NO. YEARS 0.99384
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 01/02/97 1000 10 100
1 FEE 12/31/97 0.448 10.588201 0.042311248 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 10.588201 99.95768875 1058.3721
0.99384
FORMULA: 1000*(1+T)= 1058.3721
= 1007.3721
T = 0.0074
R = 0.0074
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING MARKETS
10/01/96
TO NO. YEARS 1.24846
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/01/96 1000 10 100
1 FEE 10/01/97 0.448 11.939048 0.03752393 0.06
2 FEE 12/31/97 0.448 9.662961 0.0463626 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 9.662961 99.91611347 965.4855077
1.24846
FORMULA: 1000*(1+T)= 965.4855077
= 922.9855077
T = -0.0622
R = -0.077
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING GROWTH
07/03/95
TO NO. YEARS 2.49692
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 07/03/95 1000 10 100
1 FEE 07/03/96 0.448 13.545823 0.033072926 0.06
2 FEE 07/03/97 0.448 14.804874 0.030260305 0.05
3 FEE 12/31/97 0.448 15.905074 0.028167112 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 15.905074 99.90849966 1589.05208
2.49692
FORMULA: 1000*(1+T)= 1589.05208
= 1555.05208
T = 0.1934
R = 0.5551
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII MONEY MARKET
31-Dec-87
TO NO. YEARS 10.000
31-Dec-97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 31-Dec-87 1000.00 8.341159 119.88742
FEE 31-Dec-88 0.448 8.824322 0.05077
FEE 31-Dec-89 0.448 9.494579 0.04718
FEE 31-Dec-90 0.448 10.110932 0.04431
FEE 31-Dec-91 0.448 10.549114 0.04247
FEE 31-Dec-92 0.448 10.764714 0.04162
FEE 31-Dec-93 0.448 10.913226 0.04105
FEE 31-Dec-94 0.448 11.182786 0.04006
FEE 31-Dec-95 0.448 11.653110 0.03844
FEE 31-Dec-96 0.448 12.083835 0.03707
FEE 31-Dec-97 0.448 12.545891 0.03571
RESULTING VALUE 31-Dec-97 12.545891 119.46873 1498.8416
10.000
FORMULA: 1000*(1+T)= 1498.8416 - (0.85 * 1000 * 0)
= 1498.841639
T = 4.13%
R = 49.88%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII HIGH YIELD
31-Dec-87
TO NO. YEARS 10.000
31-Dec-97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 31-Dec-87 1000.00 13.096025 76.35905
FEE 31-Dec-88 0.448 14.344388 0.03123
FEE 31-Dec-89 0.448 12.370551 0.03622
FEE 31-Dec-90 0.448 8.932412 0.05015
FEE 31-Dec-91 0.448 13.981604 0.03204
FEE 31-Dec-92 0.448 16.335603 0.02742
FEE 31-Dec-93 0.448 20.022205 0.02238
FEE 31-Dec-94 0.448 19.314985 0.02319
FEE 31-Dec-95 0.448 21.859326 0.02049
FEE 31-Dec-96 0.448 24.148290 0.01855
FEE 31-Dec-97 0.448 26.651638 0.01681
RESULTING VALUE 31-Dec-97 26.651638 76.08055 2027.6714
10.000
FORMULA: 1000*(1+T)= 2027.6714 - (0.85 * 1000 * 0)
= 2027.671385
T = 7.32%
R = 102.77%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY
31-Dec-87
TO NO. YEARS 10.000
31-Dec-97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 31-Dec-87 1000.00 8.875000 112.67606
FEE 31-Dec-88 0.448 9.600025 0.04667
FEE 31-Dec-89 0.448 11.259461 0.03979
FEE 31-Dec-90 0.448 10.705807 0.04185
FEE 31-Dec-91 0.448 16.799149 0.02667
FEE 31-Dec-92 0.448 16.599155 0.02699
FEE 31-Dec-93 0.448 19.604447 0.02285
FEE 31-Dec-94 0.448 18.189346 0.02463
FEE 31-Dec-95 0.448 25.863867 0.01732
FEE 31-Dec-96 0.448 28.669371 0.01563
FEE 31-Dec-97 0.448 38.873354 0.01152
RESULTING VALUE 31-Dec-97 38.873354 112.40214 4369.4483
10.000
FORMULA: 1000*(1+T)= 4369.4483 - (0.85 * 1000 * 0)
= 4369.448294
T = 15.89%
R = 336.94%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII QUALITY INCOME
31-Dec-87
TO NO. YEARS 10.000
31-Dec-97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 31-Dec-87 1000.00 8.361230 119.59963
FEE 31-Dec-88 0.448 8.863644 0.05054
FEE 31-Dec-89 0.448 9.867627 0.04540
FEE 31-Dec-90 0.448 10.403187 0.04306
FEE 31-Dec-91 0.448 12.163222 0.03683
FEE 31-Dec-92 0.448 12.993017 0.03448
FEE 31-Dec-93 0.448 14.486819 0.03092
FEE 31-Dec-94 0.448 13.311063 0.03366
FEE 31-Dec-95 0.448 16.373027 0.02736
FEE 31-Dec-96 0.448 16.403816 0.02731
FEE 31-Dec-97 0.448 17.982521 0.02491
RESULTING VALUE 31-Dec-97 17.982521 119.24514 2144.3282
10.000
FORMULA: 1000*(1+T)= 2144.3282 - (0.85 * 1000 * 0)
= 2144.32825
T = 7.93%
R = 114.43%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII STRATEGIST
31-Dec-87
TO NO. YEARS 10.000
31-Dec-97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 31-Dec-87 1000.00 8.611323 116.12617
FEE 31-Dec-88 0.448 9.582882 0.04675
FEE 31-Dec-89 0.448 10.463936 0.04281
FEE 31-Dec-90 0.448 10.483449 0.04273
FEE 31-Dec-91 0.448 13.266070 0.03377
FEE 31-Dec-92 0.448 14.034777 0.03192
FEE 31-Dec-93 0.448 15.285892 0.02931
FEE 31-Dec-94 0.448 15.687325 0.02856
FEE 31-Dec-95 0.448 16.919048 0.02648
FEE 31-Dec-96 0.448 19.198700 0.02333
FEE 31-Dec-97 0.448 21.539863 0.02080
RESULTING VALUE 31-Dec-97 21.539863 115.79971 2494.3098
10.000
FORMULA: 1000*(1+T)= 2494.3098 - (0.85 * 1000 * 0)
= 2494.309829
T = 9.57%
R = 149.43%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII DIVIDEND GROWTH
3/2/90
TO NO. YEARS 7.832991
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 3/2/90 1000 12.106506 82.60021512
1 FEE 3/2/91 0.448 12.465782 0.035938379 0.06
2 FEE 3/2/92 0.448 13.997394 0.032005958 0.05
3 FEE 3/2/93 0.448 15.555348 0.028800384 0.04
4 3/2/94 0.448 16.588395 0.027006832 0.03
5 3/2/95 0.448 16.960386 0.026414493 0.02
6 3/2/96 0.448 22.803449 0.019646151 0.01
7 3/2/97 0.448 27.282267 0.016420923 0
8 12/31/97 0.448 32.589936 0.013746575 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 32.589936 82.40023543 2685.418399
7.832991102
FORMULA: 1000*(1+T)= 2685.418399
= 2685.418399
T = 13.44%
R = 168.54%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII UTILITIES
3/2/90
TO NO. YEARS 7.832991
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 3/2/90 1000 10.130909 98.70782572
1 FEE 3/2/91 0.448 10.811481 0.041437431 0.06
2 FEE 3/2/92 0.448 11.98733 0.037372793 0.05
3 FEE 3/2/93 0.448 14.946348 0.029973877 0.04
4 3/2/94 0.448 15.037831 0.02979153 0.03
5 3/2/95 0.448 14.666007 0.030546828 0.02
6 3/2/96 0.448 18.115984 0.024729543 0.01
7 3/2/97 0.448 19.481392 0.022996303 0
8 12/31/97 0.448 24.208448 0.018505936 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 35795 24.208448 98.47247148 2383.865705
7.832991102
FORMULA: 1000*(1+T)= 2383.865705
= 2383.865705
T = 11.73%
R = 138.39%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EUROPEAN GROWTH
3/1/91
TO NO. YEARS 6.836413
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 3/1/91 1000 10 100
1 FEE 3/1/92 0.448 10.306403 0.043468124 0.06
2 FEE 3/1/93 0.448 10.74421 0.041696877 0.05
3 FEE 3/1/94 0.448 14.776559 0.03031829 0.04
4 3/1/95 0.448 15.668384 0.02859261 0.03
5 3/1/96 0.448 19.936189 0.022471697 0.02
6 3/1/97 0.448 24.428221 0.018339444 0.01
7 12/31/97 0.448 27.870064 0.016074595 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 27.870064 99.79903836 2781.405586
6.836413415
FORMULA: 1000*(1+T)= 2781.405586
= 2781.405586
T = 16.14%
R = 178.14%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL GROWTH
3/1/91
TO NO. YEARS 6.836413
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 3/1/91 1000 10 100
1 FEE 3/1/92 0.448 12.141744 0.0368975 0.06
2 FEE 3/1/93 0.448 11.843745 0.037825873 0.05
3 FEE 3/1/94 0.448 11.745794 0.038141313 0.04
4 3/1/95 0.448 12.152051 0.036866205 0.03
5 3/1/96 0.448 15.739179 0.028464001 0.02
6 3/1/97 0.448 16.887591 0.026528354 0.01
7 12/31/97 0.448 20.17734 0.022203125 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 20.17734 99.77307363 2013.155229
6.836413415
FORMULA: 1000*(1+T)= 2013.155229
= 2013.155229
T = 10.78%
R = 101.32%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII PACIFIC GROWTH
2/22/94
TO NO. YEARS 3.854894
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 2/22/94 1000 10 100
1 FEE 2/22/95 0.448 8.627411 0.051927513 0.06
2 FEE 2/22/96 0.448 10.401149 0.043072164 0.05
3 FEE 2/22/97 0.448 9.957804 0.044989839 0.04
4 12/31/97 0.448 6.059243 0.073936629 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 6.059243 99.78607385 604.6280695
3.854893908
FORMULA: 1000*(1+T)= 604.6280695
= 579.1280695
T = -13.21%
R = -42.09%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII GLOBAL DIVIDEND GROWTH
2/22/94
TO NO. YEARS 3.854894
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 2/22/94 1000 10 100
1 FEE 2/22/95 0.448 9.976816 0.044904106 0.06
2 FEE 2/22/96 0.448 12.277775 0.036488696 0.05
3 FEE 2/22/97 0.448 13.891783 0.03224928 0.04
4 12/31/97 0.448 15.303559 0.029274236 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 15.303559 99.85708368 1528.168772
3.854893908
FORMULA: 1000*(1+T)= 1528.168772
= 1502.668772
T = 11.14%
R = 50.27%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL APPRECIATION
1/21/97
TO NO. YEARS 0.941821
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/21/97 1000 10 100
1 FEE 12/31/97 0.448 11.176955 0.040082473 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 11.176955 99.95991753 1117.2475
0.941820671
FORMULA: 1000*(1+T)= 1117.2475
= 1066.2475
T = 7.05%
R = 6.62%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INCOME BUILDER
1/21/97
TO NO. YEARS 0.941821
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/21/97 1000 10 100
1 FEE 12/31/97 0.448 12.083732 0.037074639 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 12.083732 99.96292536 1207.9252
0.941820671
FORMULA: 1000*(1+T)= 1207.9252
= 1156.9252
T = 16.74%
R = 15.69%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY GROWTH
1/2/97
TO NO. YEARS 0.99384
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/2/97 1000 10 100
1 FEE 12/31/97 0.448 13.127931 0.034125713 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 13.127931 99.96587429 1312.3451
0.993839836
FORMULA: 1000*(1+T)= 1312.3451
= 1261.3451
T = 26.32%
R = 26.13%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INTERNATIONAL MAGNUM
1/2/97
TO NO. YEARS 0.99384
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/2/97 1000 10 100
1 FEE 12/31/97 0.448 10.588201 0.042311248 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 10.588201 99.95768875 1058.3721
0.993839836
FORMULA: 1000*(1+T)= 1058.3721
= 1007.3721
T = 0.74%
R = 0.74%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING MARKETS
10/1/96
TO NO. YEARS 1.24846
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/1/96 1000 10 100
1 FEE 10/1/97 0.448 11.939048 0.03752393 0.06
2 FEE 12/31/97 0.448 9.662961 0.0463626 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 9.662961 99.91611347 965.485508
1.248459959
FORMULA: 1000*(1+T)= 965.4855077
= 922.9855077
T = -6.22%
R = -7.70%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING GROWTH
7/3/95
TO NO. YEARS 2.49692
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 7/3/95 1000 10 100
1 FEE 7/3/96 0.448 13.545823 0.033072926 0.06
2 FEE 7/3/97 0.448 14.804874 0.030260305 0.05
3 FEE 12/31/97 0.448 15.905074 0.028167112 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 15.905074 99.90849966 1589.05208
2.496919918
FORMULA: 1000*(1+T)= 1589.05208
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Non-Standardized Calculations
<S> <C>
Dates:
Current: 12/31/97
3 Months Ago: 9/30/97
End of Last Year: 12/31/96
One Yr Ago: 12/31/96
Two Yrs Ago: 12/29/95
Three Yrs Ago: 12/31/94
Five Yrs Ago: 12/31/92
Ten Yrs Ago: 12/31/87
<CAPTION>
Non-Standardized Performance
Inception Inception Ten Yr Five Yr Three Two
Fund Date AUV AUV AUV AUV AUV
<S> <C> <C> <C> <C> <C> <C>
Money Market 10/25/90 10 N/A 10.764714 11.182786 11.65311
High Yield 10/25/90 10 N/A 16.335603 19.314985 21.859326
Equity 10/25/90 10 N/A 16.599155 18.189346 25.863867
Quality Income 10/25/90 10 N/A 12.993017 13.311063 16.373027
Managed Assets 10/25/90 10 N/A 14.034777 15.687325 16.919048
Dividend Growth 10/25/90 10 N/A 14.844196 16.068087 21.504641
Utilities 10/25/90 10 N/A 13.840391 14.189948 17.998758
European Growth 3/1/91 10 N/A 10.280422 15.296029 18.975848
Capital Growth 3/1/91 10 N/A 12.731456 11.32227 14.92275
Pacific Growth 2/22/94 10 N/A N/A 9.129646 9.619002
Global Div Growth 2/22/94 10 N/A N/A 9.894112 11.934841
Capital Appreciation 1/21/97 10 N/A N/A N/A N/A
Income Builder 1/21/97 10 N/A N/A N/A N/A
Equity Growth 1/2/97 10 N/A N/A N/A N/A
International Magnum 1/2/97 10 N/A N/A N/A N/A
Emerging Markets 10/1/96 10 N/A N/A N/A N/A
Emerging Growth 7/3/95 10 N/A N/A N/A 11.632799
<PAGE>
<CAPTION>
One Yr YTD 3 Months Today's Inception Ten Years
Fund AUV AUV AUV AUV Total Average Total Average
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market 12.083835 12.083835 12.424916 12.545891 25.46% 3.21% N/A N/A
High Yield 24.14829 24.14829 26.306948 26.651638 166.52% 14.61% N/A N/A
Equity 28.669371 28.669371 38.696252 38.873354 288.73% 20.79% N/A N/A
Quality Income 16.403816 16.403816 17.439676 17.982521 79.83% 8.51% N/A N/A
Managed Assets 19.1987 19.1987 21.969239 21.539863 115.40% 11.26% N/A N/A
Dividend Growth 26.298448 26.298448 32.626471 32.589936 225.90% 17.86% N/A N/A
Utilities 19.297511 19.297511 21.576775 24.208448 142.08% 13.09% N/A N/A
European Growth 24.33484 24.33484 28.475823 27.870064 178.70% 16.16% N/A N/A
Capital Growth 16.421498 16.421498 21.707373 20.17734 101.77% 10.81% N/A N/A
Pacific Growth 9.858203 9.858203 8.394755 6.059243 -39.41% -12.18% N/A N/A
Global Div Growth 13.844714 13.844714 16.110002 15.303559 53.04% 11.66% N/A N/A
Capital Appreciation N/A 10 12.364355 11.176955 11.77% 12.53% N/A N/A
Income Builder N/A 10 11.774989 12.083732 20.84% 22.24% N/A N/A
Equity Growth N/A 10 12.712167 13.127931 31.28% 31.48% N/A N/A
International Magnum N/A 10 11.494259 10.588201 5.88% 5.92% N/A N/A
Emerging Markets 9.764247 9.764247 11.909837 9.662961 -3.37% -2.71% N/A N/A
Emerging Growth 13.386945 13.386945 16.929532 15.905074 59.05% 20.41% N/A N/A
N/A
<PAGE>
<CAPTION>
Five Years Three Years Two Years One Year YTD Three Months
Fund Total Average Total Average Total Average
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market 16.55% 3.11% 12.19% 3.91% 7.66% 3.76% 3.82% 3.82% 0.97%
High Yield 63.15% 10.29% 37.98% 11.33% 21.92% 10.42% 10.37% 10.37% 1.31%
Equity 134.19% 18.55% 113.71% 28.81% 50.30% 22.60% 35.59% 35.59% 0.46%
Quality Income 38.40% 6.72% 35.09% 10.55% 9.83% 4.80% 9.62% 9.62% 3.11%
Managed Assets 53.47% 8.95% 37.31% 11.15% 27.31% 12.83% 12.19% 12.19% -1.95%
Dividend Growth 119.55% 17.03% 102.82% 26.58% 51.55% 23.10% 23.92% 23.92% -0.11%
Utilities 74.91% 11.83% 70.60% 19.49% 34.50% 15.97% 25.45% 25.45% 12.20%
European Growth 171.10% 22.07% 82.20% 22.14% 46.87% 21.19% 14.53% 14.53% -2.13%
Capital Growth 58.48% 9.65% 78.21% 21.24% 35.21% 16.28% 22.87% 22.87% -7.05%
Pacific Growth N/A N/A -33.63% -12.77% -37.01% -20.63% -38.54% -38.54% -27.82%
Global Div Growth N/A N/A 54.67% 15.65% 28.23% 13.24% 10.54% 10.54% -5.01%
Capital Appreciation N/A N/A N/A N/A N/A N/A N/A 11.77% -9.60%
Income Builder N/A N/A N/A N/A N/A N/A N/A 20.84% 2.62%
Equity Growth N/A N/A N/A N/A N/A N/A N/A 31.28% 3.27%
International Magnum N/A N/A N/A N/A N/A N/A N/A 5.88% -7.88%
Emerging Markets N/A N/A N/A N/A N/A N/A -1.04% -1.04% -18.87%
Emerging Growth N/A N/A N/A N/A 36.73% 16.93% 18.81% 18.81% -6.05%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII MONEY MARKET
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 12.065489 82.88101709
FEE 12/31/97 0.448 12.510584 0.035809679
RESULTING VALUE 12/31/97 12.510584 82.84520741 1036.442
1
FORMULA: 1000*(1+T)= 1036.441926 - (0.85 * 1000 * 0.05)
= 993.9419263
T = -0.61%
R = -0.61%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII HIGH YIELD
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 24.111603 41.47380827
FEE 12/31/97 0.448 26.576588 0.016856942
RESULTING VALUE 12/31/97 26.576588 41.45695133 1101.784
1
FORMULA: 1000*(1+T)= 1101.784315 - (0.85 * 1000 * 0.05)
= 1059.284315
T = 5.93%
R = 5.93%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 28.625797 34.93352517
FEE 12/31/97 0.448 38.763896 0.011557146
RESULTING VALUE 12/31/97 38.763896 34.92196802 1353.712
1
FORMULA: 1000*(1+T)= 1353.711537 - (0.85 * 1000 * 0.05)
= 1311.211537
T = 31.12%
R = 31.12%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII QUALITY INCOME
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 16.378885 61.05421706
FEE 12/31/97 0.448 17.931874 0.024983446
RESULTING VALUE 12/31/97 17.931874 61.02923361 1094.369
1
FORMULA: 1000*(1+T)= 1094.368527 - (0.85 * 1000 * 0.05)
= 1051.868527
T = 5.19%
R = 5.19%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII STRATEGIST
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 19.16954 52.16609267
FEE 12/31/97 0.448 21.479229 0.020857359
RESULTING VALUE 12/31/97 21.479229 52.14523531 1120.039
1
FORMULA: 1000*(1+T)= 1120.03945 - (0.85 * 1000 * 0.05)
= 1077.53945
T = 7.75%
R = 7.75%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII DIVIDEND GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 26.258516 38.08288328
FEE 12/31/97 0.448 32.498223 0.013785369
RESULTING VALUE 12/31/97 32.498223 38.06909791 1237.178
1
FORMULA: 1000*(1+T)= 1237.178033 - (0.85 * 1000 * 0.05)
= 1194.678033
T = 19.47%
R = 19.47%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII UTILITIES
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 19.26819 51.89901075
FEE 12/31/97 0.448 24.140294 0.018558183
RESULTING VALUE 12/31/97 24.140294 51.88045257 1252.409
1
FORMULA: 1000*(1+T)= 1252.409378 - (0.85 * 1000 * 0.05)
= 1209.909378
T = 20.99%
R = 20.99%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EUROPEAN GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 24.297886 41.15584376
FEE 12/31/97 0.448 27.791611 0.016119972
RESULTING VALUE 12/31/97 27.791611 41.13972379 1143.339
1
FORMULA: 1000*(1+T)= 1143.3392 - (0.85 * 1000 * 0.05)
= 1100.8392
T = 10.08%
R = 10.08%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 16.396546 60.98845452
FEE 12/31/97 0.448 20.120513 0.022265834
RESULTING VALUE 12/31/97 20.120513 60.96618869 1226.671
1
FORMULA: 1000*(1+T)= 1226.670992 - (0.85 * 1000 * 0.05)
= 1184.170992
T = 18.42%
R = 18.42%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII PACIFIC GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 9.843217 101.5928024
FEE 12/31/97 0.448 6.042153 0.074145756
RESULTING VALUE 12/31/97 6.042153 101.5186567 613.3913
1
FORMULA: 1000*(1+T)= 613.391256 - (0.85 * 1000 * 0.05)
= 570.891256
T = -42.91%
R = -42.91%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII GLOBAL DIVIDEND GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 13.823682 72.33962703
FEE 12/31/97 0.448 15.260474 0.029356886
RESULTING VALUE 12/31/97 15.260474 72.31027014 1103.489
1
FORMULA: 1000*(1+T)= 1103.488997 - (0.85 * 1000 * 0.05)
= 1060.988997
T = 6.10%
R = 6.10%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL APPRECIATION
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 #VALUE! #VALUE!
FEE 12/31/97 0.448 11.163269 0.040131614
RESULTING VALUE 12/31/97 11.163269 #VALUE! #VALUE!
1
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INCOME BUILDER
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 #VALUE! #VALUE!
FEE 12/31/97 0.448 12.068959 0.03712002
RESULTING VALUE 12/31/97 12.068959 #VALUE! #VALUE!
1
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 #VALUE! #VALUE!
FEE 12/31/97 0.448 13.110994 0.034169797
RESULTING VALUE 12/31/97 13.110994 #VALUE! #VALUE!
1
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII INTERNATIONAL MAGNUM
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 #VALUE! #VALUE!
FEE 12/31/97 0.448 10.574532 0.042365941
RESULTING VALUE 12/31/97 10.574532 #VALUE! #VALUE!
1
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING MARKETS
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 9.761094 102.447533
FEE 12/31/97 0.448 9.647291 0.046437907
RESULTING VALUE 12/31/97 9.647291 102.4010951 987.8932
1
FORMULA: 1000*(1+T)= 987.8931634 - (0.85 * 1000 * 0.05)
= 945.3931634
T = -5.46%
R = -5.46%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 13.360923 74.84512859
FEE 12/31/97 0.448 15.853533 0.028258685
RESULTING VALUE 12/31/97 15.853533 74.8168699 1186.112
1
FORMULA: 1000*(1+T)= 1186.111716 - (0.85 * 1000 * 0.05)
= 1143.611716
T = 14.36%
R = 14.36%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII MONEY MARKET
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 10.805244 92.54765556
FEE 12/31/93 0.448 10.939204 0.04095362
FEE 12/31/94 0.448 11.196088 0.040013976
FEE 12/31/95 0.448 11.650626 0.038452869
FEE 12/31/96 0.448 12.065489 0.037130696
FEE 12/31/97 0.448 12.510584 0.035809679
RESULTING VALUE 12/31/97 12.510584 92.35529472 1155.418672
5
FORMULA: 1000*(1+T)= 1155.418672 - (0.85 * 1000 * 0.01)
= 1146.918672
T = 2.78%
R = 14.69%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII HIGH YIELD
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 16.40258 60.96601876
FEE 12/31/93 0.448 20.069886 0.022322
FEE 12/31/94 0.448 19.33797 0.023166858
FEE 12/31/95 0.448 21.854658 0.020499062
FEE 12/31/96 0.448 24.111603 0.018580266
FEE 12/31/97 0.448 26.576588 0.016856942
RESULTING VALUE 12/31/97 26.576588 60.86459363 1617.573229
5
FORMULA: 1000*(1+T)= 1617.573229 - (0.85 * 1000 * 0.01)
= 1609.073229
T = 9.98%
R = 60.91%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 16.660353 60.02273781
FEE 12/31/93 0.448 19.651076 0.022797734
FEE 12/31/94 0.448 18.210988 0.024600532
FEE 12/31/95 0.448 25.858344 0.017325162
FEE 12/31/96 0.448 28.625797 0.015650219
FEE 12/31/97 0.448 38.763896 0.011557146
RESULTING VALUE 12/31/97 38.763896 59.93080702 2323.151571
5
FORMULA: 1000*(1+T)= 2323.151571 - (0.85 * 1000 * 0.01)
= 2314.651571
T = 18.28%
R = 131.47%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII QUALITY INCOME
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 13.040873 76.68198287
FEE 12/31/93 0.448 14.521285 0.030851264
FEE 12/31/94 0.448 13.32689 0.033616245
FEE 12/31/95 0.448 16.369534 0.027367914
FEE 12/31/96 0.448 16.378885 0.027352289
FEE 12/31/97 0.448 17.931874 0.024983446
RESULTING VALUE 12/31/97 17.931874 76.53781171 1372.466396
5
FORMULA: 1000*(1+T)= 1372.466396 - (0.85 * 1000 * 0.01)
= 1363.966396
T = 6.40%
R = 36.40%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII STRATEGIST
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 14.086481 70.99005067
FEE 12/31/93 0.448 15.322262 0.029238503
FEE 12/31/94 0.448 15.705992 0.028524145
FEE 12/31/95 0.448 16.915435 0.026484687
FEE 12/31/96 0.448 19.16954 0.02337041
FEE 12/31/97 0.448 21.479229 0.020857359
RESULTING VALUE 12/31/97 21.479229 70.86157557 1522.052009
5
FORMULA: 1000*(1+T)= 1522.052009 - (0.85 * 1000 * 0.01)
= 1513.552009
T = 8.64%
R = 51.36%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII DIVIDEND GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 14.89886 67.11922926
FEE 12/31/93 0.448 16.785885 0.02668909
FEE 12/31/94 0.448 16.087197 0.027848232
FEE 12/31/95 0.448 21.50005 0.020837161
FEE 12/31/96 0.448 26.258516 0.017061132
FEE 12/31/97 0.448 32.498223 0.013785369
RESULTING VALUE 12/31/97 32.498223 67.01300827 2177.803687
5
FORMULA: 1000*(1+T)= 2177.803687 - (0.85 * 1000 * 0.01)
= 2169.303687
T = 16.75%
R = 116.93%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII UTILITIES
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 13.891409 71.98693811
FEE 12/31/93 0.448 15.835375 0.028291089
FEE 12/31/94 0.448 14.206834 0.031534119
FEE 12/31/95 0.448 17.994919 0.024895916
FEE 12/31/96 0.448 19.26819 0.023250757
FEE 12/31/97 0.448 24.140294 0.018558183
RESULTING VALUE 12/31/97 24.140294 71.86040805 1734.731377
5
FORMULA: 1000*(1+T)= 1734.731377 - (0.85 * 1000 * 0.01)
= 1726.231377
T = 11.54%
R = 72.62%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EUROPEAN GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 10.318344 96.91477625
FEE 12/31/93 0.448 14.323885 0.031276431
FEE 12/31/94 0.448 15.314253 0.029253794
FEE 12/31/95 0.448 18.971796 0.023614
FEE 12/31/96 0.448 24.297886 0.018437818
FEE 12/31/97 0.448 27.791611 0.016119972
RESULTING VALUE 12/31/97 27.791611 96.79607423 2690.118841
5
FORMULA: 1000*(1+T)= 2690.118841 - (0.85 * 1000 * 0.01)
= 2681.618841
T = 21.81%
R = 168.16%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 12.778358 78.257316
FEE 12/31/93 0.448 11.71024 0.038257115
FEE 12/31/94 0.448 11.335731 0.039521051
FEE 12/31/95 0.448 14.919563 0.030027689
FEE 12/31/96 0.448 16.396546 0.027322828
FEE 12/31/97 0.448 20.120513 0.022265834
RESULTING VALUE 12/31/97 20.120513 78.09992149 1571.410486
5
FORMULA: 1000*(1+T)= 1571.410486 - (0.85 * 1000 * 0.01)
= 1562.910486
T = 9.34%
R = 56.29%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII PACIFIC GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 9.140518 0.04901254
FEE 12/31/95 0.448 9.616944 0.046584445
FEE 12/31/96 0.448 9.843217 0.045513575
FEE 12/31/97 0.448 6.042153 0.074145756
RESULTING VALUE 12/31/97 6.042153 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII GLOBAL DIVIDEND GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 9.90589 0.045225618
FEE 12/31/95 0.448 11.932293 0.037545173
FEE 12/31/96 0.448 13.823682 0.032408153
FEE 12/31/97 0.448 15.260474 0.029356886
RESULTING VALUE 12/31/97 15.260474 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL APPRECIATION
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 #VALUE! #VALUE!
FEE 12/31/96 0.448 #VALUE! #VALUE!
FEE 12/31/97 0.448 11.163269 0.040131614
RESULTING VALUE 12/31/97 11.163269 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INCOME BUILDER
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 #VALUE! #VALUE!
FEE 12/31/96 0.448 #VALUE! #VALUE!
FEE 12/31/97 0.448 12.068959 0.03712002
RESULTING VALUE 12/31/97 12.068959 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 #VALUE! #VALUE!
FEE 12/31/96 0.448 #VALUE! #VALUE!
FEE 12/31/97 0.448 13.110994 0.034169797
RESULTING VALUE 12/31/97 13.110994 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII INTERNATIONAL MAGNUM
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 #VALUE! #VALUE!
FEE 12/31/96 0.448 #VALUE! #VALUE!
FEE 12/31/97 0.448 10.574532 0.042365941
RESULTING VALUE 12/31/97 10.574532 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING MARKETS
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 #VALUE! #VALUE!
FEE 12/31/96 0.448 9.761094 0.045896495
FEE 12/31/97 0.448 9.647291 0.046437907
RESULTING VALUE 12/31/97 9.647291 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 11.625387 0.038536352
FEE 12/31/96 0.448 13.360923 0.033530618
FEE 12/31/97 0.448 15.853533 0.028258685
RESULTING VALUE 12/31/97 15.853533 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII MONEY MARKET
10/25/90
TO NO. YEARS 7.18412
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/25/90 1000 10.066205 99.34230427
1 FEE 10/25/91 0.448 10.540686 0.042501978 0.06
2 FEE 10/25/92 0.448 10.775291 0.041576603 0.05
3 FEE 10/25/93 0.448 10.914332 0.041046946 0.04
4 10/25/94 0.448 11.121265 0.040283187 0.03
5 10/25/95 0.448 11.572932 0.03871102 0.02
6 10/25/96 0.448 11.988236 0.037369968 0.01
7 10/25/97 0.448 12.424093 0.03605897 0
8 12/31/97 0.448 12.510584 0.035809679 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 12.510584 99.02894592 1238.909946
7.18412
FORMULA: 1000*(1+T)= 1238.909946
= 1238.909946
T = 3.03%
R = 23.89%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII HIGH YIELD
10/25/90
TO NO. YEARS 7.18412
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/25/90 1000 10.069557 99.30923476
1 FEE 10/25/91 0.448 13.979125 0.032047786 0.06
2 FEE 10/25/92 0.448 16.38225 0.027346671 0.05
3 FEE 10/25/93 0.448 19.400871 0.023091747 0.04
4 10/25/94 0.448 19.345288 0.023158094 0.03
5 10/25/95 0.448 21.53393 0.020804377 0.02
6 10/25/96 0.448 23.63065 0.018958429 0.01
7 10/25/97 0.448 26.342591 0.017006679 0
8 12/31/97 0.448 26.576588 0.016856942 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 26.576588 99.12996403 2634.536213
7.18412
FORMULA: 1000*(1+T)= 2634.536213
= 2634.536213
T = 14.44%
R = 163.45%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY
10/25/90
TO NO. YEARS 7.18412
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/25/90 1000 10.065409 99.35016053
1 FEE 10/25/91 0.448 14.634655 0.030612269 0.06
2 FEE 10/25/92 0.448 15.235724 0.029404576 0.05
3 FEE 10/25/93 0.448 19.992584 0.022408309 0.04
4 10/25/94 0.448 18.465979 0.024260831 0.03
5 10/25/95 0.448 24.167546 0.018537257 0.02
6 10/25/96 0.448 27.902898 0.01605568 0.01
7 10/25/97 0.448 38.077069 0.011765611 0
8 12/31/97 0.448 38.763896 0.011557146 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 38.763896 99.18555886 3844.818688
7.18412
FORMULA: 1000*(1+T)= 3844.818688
= 3844.818688
T = 20.62%
R = 284.48%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII QUALITY INCOME
10/25/90
TO NO. YEARS 7.18412
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/25/90 1000 10.06537 99.35054548
1 FEE 10/25/91 0.448 11.577245 0.038696598 0.06
2 FEE 10/25/92 0.448 12.70932 0.035249722 0.05
3 FEE 10/25/93 0.448 14.689403 0.030498176 0.04
4 10/25/94 0.448 13.158504 0.034046424 0.03
5 10/25/95 0.448 15.793637 0.028365854 0.02
6 10/25/96 0.448 16.127909 0.027777935 0.01
7 10/25/97 0.448 17.543612 0.02553636 0
8 12/31/97 0.448 17.931874 0.024983446 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 17.931874 99.10539097 1777.145384
7.18412
FORMULA: 1000*(1+T)= 1777.145384
= 1777.145384
T = 8.33%
R = 77.71%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII STRATEGIST
10/25/90
TO NO. YEARS 7.18412
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/25/90 1000 10.065382 99.35042704
1 FEE 10/25/91 0.448 12.42886 0.03604514 0.06
2 FEE 10/25/92 0.448 13.574363 0.03300339 0.05
3 FEE 10/25/93 0.448 15.127003 0.029615913 0.04
4 10/25/94 0.448 15.609107 0.028701193 0.03
5 10/25/95 0.448 16.439011 0.027252248 0.02
6 10/25/96 0.448 18.419199 0.024322447 0.01
7 10/25/97 0.448 21.589594 0.020750738 0
8 12/31/97 0.448 21.479229 0.020857359 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 21.479229 99.12987861 2129.233363
7.18412
FORMULA: 1000*(1+T)= 2129.233363
= 2129.233363
T = 11.09%
R = 112.92%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII DIVIDEND GROWTH
10/25/90
TO NO. YEARS 7.18412
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/25/90 1000 10.065378 99.35046652
1 FEE 10/25/91 0.448 13.147308 0.034075417 0.06
2 FEE 10/25/92 0.448 14.400498 0.031110035 0.05
3 FEE 10/25/93 0.448 16.486161 0.027174307 0.04
4 10/25/94 0.448 16.187098 0.027676363 0.03
5 10/25/95 0.448 20.140653 0.022243569 0.02
6 10/25/96 0.448 24.846756 0.018030523 0.01
7 10/25/97 0.448 32.243363 0.013894332 0
8 12/31/97 0.448 32.498223 0.013785369 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 32.498223 99.16247661 3222.604278
7.18412
FORMULA: 1000*(1+T)= 3222.604278
= 3222.604278
T = 17.69%
R = 222.26%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII UTILITIES
10/25/90
TO NO. YEARS 7.18412
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/25/90 1000 10.065395 99.35029872
1 FEE 10/25/91 0.448 11.681345 0.038351748 0.06
2 FEE 10/25/92 0.448 13.048798 0.034332664 0.05
3 FEE 10/25/93 0.448 16.262377 0.027548248 0.04
4 10/25/94 0.448 14.362113 0.031193182 0.03
5 10/25/95 0.448 17.023912 0.026315926 0.02
6 10/25/96 0.448 18.496368 0.024220971 0.01
7 10/25/97 0.448 21.838143 0.020514565 0
8 12/31/97 0.448 24.140294 0.018558183 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 24.140294 99.12926323 2393.009558
7.18412
FORMULA: 1000*(1+T)= 2393.009558
= 2393.009558
T = 12.91%
R = 139.30%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EUROPEAN GROWTH
3/1/91
TO NO. YEARS 6.836413
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 3/1/91 1000 10.060892 99.39476539
1 FEE 3/1/92 0.448 10.355745 0.043261011 0.06
2 FEE 3/1/93 0.448 10.781544 0.04155249 0.05
3 FEE 3/1/94 0.448 14.808589 0.030252713 0.04
4 3/1/95 0.448 15.681955 0.028567867 0.03
5 3/1/96 0.448 19.927472 0.022481527 0.02
6 3/1/97 0.448 24.386002 0.018371195 0.01
7 12/31/97 0.448 27.791611 0.016119972 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 27.791611 99.19415862 2756.76547
6.836413
FORMULA: 1000*(1+T)= 2756.76547
= 2756.76547
T = 15.99%
R = 175.68%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII CAPTIAL GROWTH
3/1/91
TO NO. YEARS 6.836413
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 3/1/91 1000 10.060832 99.39535816
1 FEE 3/1/92 0.448 12.199795 0.036721929 0.06
2 FEE 3/1/93 0.448 11.88483 0.037695112 0.05
3 FEE 3/1/94 0.448 11.771223 0.038058917 0.04
4 3/1/95 0.448 12.162557 0.03683436 0.03
5 3/1/96 0.448 15.732296 0.028476454 0.02
6 3/1/97 0.448 16.858387 0.02657431 0.01
7 12/31/97 0.448 20.120513 0.022265834 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 20.120513 99.16873124 1995.325746
6.836413
FORMULA: 1000*(1+T)= 1995.325746
= 1995.325746
T = 10.63%
R = 99.53%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII PACIFIC GROWTH
2/22/94
TO NO. YEARS 3.854894
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 2/22/94 1000 10.021919 99.78128939
1 FEE 2/22/95 0.448 8.63509 0.051881335 0.06
2 FEE 2/22/96 0.448 10.396899 0.043089771 0.05
3 FEE 2/22/97 0.448 9.940823 0.045066691 0.04
4 12/31/97 0.448 6.042153 0.074145756 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 6.042153 99.56710584 601.5996872
3.854894
FORMULA: 1000*(1+T)= 601.5996872
= 576.0996872
T = -13.33%
R = -42.39%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII DIVIDEND GROWTH
2/22/94
TO NO. YEARS 3.854894
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 2/22/94 1000 10.021914 99.78133917
1 FEE 2/22/95 0.448 9.9857 0.044864156 0.06
2 FEE 2/22/96 0.448 12.272756 0.036503618 0.05
3 FEE 2/22/97 0.448 13.868112 0.032304325 0.04
4 12/31/97 0.448 15.260474 0.029356886 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 15.260474 99.63831019 1520.527842
3.854894
FORMULA: 1000*(1+T)= 1520.527842
= 1495.027842
T = 11.00%
R = 49.50%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPTIAL APPRECIATION
1/21/97
TO NO. YEARS 0.941821
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/21/97 1000 10 100
1 FEE 12/31/97 0.448 11.163269 0.040131614 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 11.163269 99.95986839 1115.8789
0.941821
FORMULA: 1000*(1+T)= 1115.8789
= 1064.8789
T = 6.90%
R = 6.49%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INCOME BUILDER
1/21/97
TO NO. YEARS 0.941821
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/21/97 1000 10 100
1 FEE 12/31/97 0.448 12.068959 0.03712002 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 12.068959 99.96287998 1206.4479
0.941821
FORMULA: 1000*(1+T)= 1206.4479
= 1155.4479
T = 16.58%
R = 15.54%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY GROWTH
1/2/97
TO NO. YEARS 0.99384
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/2/97 1000 10 100
1 FEE 12/31/97 0.448 13.110994 0.034169797 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 13.110994 99.9658302 1310.6514
0.99384
FORMULA: 1000*(1+T)= 1310.6514
= 1259.6514
T = 26.15%
R = 25.97%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INTERNATIONAL MAGNUM
1/2/97
TO NO. YEARS 0.99384
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/2/97 1000 10 100
1 FEE 12/31/97 0.448 10.574532 0.042365941 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 10.574532 99.95763406 1057.0052
0.99384
FORMULA: 1000*(1+T)= 1057.0052
= 1006.0052
T = 0.60%
R = 0.60%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING MARKETS
10/1/96
TO NO. YEARS 1.24846
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/1/96 1000 10 100
1 FEE 10/1/97 0.448 11.923567 0.037572649 0.06
2 FEE 12/31/97 0.448 9.647291 0.046437907 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 9.647291 99.91598944 963.9186257
1.24846
FORMULA: 1000*(1+T)= 963.9186257
= 921.4186257
T = -6.35%
R = -7.86%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING GROWTH
7/3/95
TO NO. YEARS 2.49692
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 7/3/95 1000 10 100
1 FEE 7/3/96 0.448 13.528207 0.033115992 0.06
2 FEE 7/3/97 0.448 14.766407 0.030339134 0.05
3 FEE 12/31/97 0.448 15.853533 0.028258685 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 15.853533 99.90828619 1583.899312
2.49692
FORMULA: 1000*(1+T)= 1583.899312
= 1549.899312
T = 19.18%
R = 54.99%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII MONEY MARKET
12/31/87
TO NO. YEARS 10
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/87 1000 8.371772 119.4490247
FEE 12/31/88 0.448 8.845213 0.050648865
FEE 12/31/89 0.448 9.504727 0.047134442
FEE 12/31/90 0.448 10.175444 0.044027563
FEE 12/31/91 0.448 10.602635 0.042253647
FEE 12/31/92 0.448 10.805244 0.04146135
FEE 12/31/93 0.448 10.939204 0.04095362
FEE 12/31/94 0.448 11.196088 0.040013976
FEE 12/31/95 0.448 11.650626 0.038452869
FEE 12/31/96 0.448 12.065489 0.037130696
FEE 12/31/97 0.448 12.510584 0.035809679
RESULTING VALUE 12/31/97 12.510584 119.0311379 1489.14905
10
FORMULA: 1000*(1+T)= 1489.14905 - (0.85 * 1000 * 0)
= 1489.14905
T = 4.06%
R = 48.91%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII HIGH YIELD
12/31/87
TO NO. YEARS 10
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/87 1000 13.144098 76.0797736
FEE 12/31/88 0.448 14.378379 0.031157893
FEE 12/31/89 0.448 12.383794 0.036176312
FEE 12/31/90 0.448 8.992388 0.049819914
FEE 12/31/91 0.448 14.057226 0.03186973
FEE 12/31/92 0.448 16.40258 0.027312776
FEE 12/31/93 0.448 20.069886 0.022322
FEE 12/31/94 0.448 19.33797 0.023166858
FEE 12/31/95 0.448 21.854658 0.020499062
FEE 12/31/96 0.448 24.111603 0.018580266
FEE 12/31/97 0.448 26.576588 0.016856942
RESULTING VALUE 12/31/97 26.576588 75.80201184 2014.558838
10
FORMULA: 1000*(1+T)= 2014.558838 - (0.85 * 1000 * 0)
= 2014.558838
T = 7.26%
R = 101.46%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY
12/31/87
TO NO. YEARS 10
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/87 1000 8.907562 112.2641639
FEE 12/31/88 0.448 9.622764 0.04655627
FEE 12/31/89 0.448 11.271503 0.039746252
FEE 12/31/90 0.448 10.77327 0.041584403
FEE 12/31/91 0.448 16.883076 0.026535449
FEE 12/31/92 0.448 16.660353 0.026890187
FEE 12/31/93 0.448 19.651076 0.022797734
FEE 12/31/94 0.448 18.210988 0.024600532
FEE 12/31/95 0.448 25.858344 0.017325162
FEE 12/31/96 0.448 28.625797 0.015650219
FEE 12/31/97 0.448 38.763896 0.011557146
RESULTING VALUE 12/31/97 38.763896 111.9909205 4341.204396
10
FORMULA: 1000*(1+T)= 4341.204396 - (0.85 * 1000 * 0)
= 4341.204396
T = 15.81%
R = 334.12%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII QUALITY INCOME
12/31/87
TO NO. YEARS 10
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/87 1000 8.391894 119.162611
FEE 12/31/88 0.448 8.88462 0.050424216
FEE 12/31/89 0.448 9.878173 0.045352516
FEE 12/31/90 0.448 10.468699 0.042794238
FEE 12/31/91 0.448 12.223939 0.036649398
FEE 12/31/92 0.448 13.040873 0.034353528
FEE 12/31/93 0.448 14.521285 0.030851264
FEE 12/31/94 0.448 13.32689 0.033616245
FEE 12/31/95 0.448 16.369534 0.027367914
FEE 12/31/96 0.448 16.378885 0.027352289
FEE 12/31/97 0.448 17.931874 0.024983446
RESULTING VALUE 12/31/97 17.931874 118.8088659 2130.465614
10
FORMULA: 1000*(1+T)= 2130.465614 - (0.85 * 1000 * 0)
= 2130.465614
T = 7.86%
R = 113.05%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII STRATEGIST
12/31/87
TO NO. YEARS 10
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/87 1000 8.64291 115.7017717
FEE 12/31/88 0.448 9.60557 0.046639606
FEE 12/31/89 0.448 10.47512 0.042768006
FEE 12/31/90 0.448 10.54948 0.042466548
FEE 12/31/91 0.448 13.332302 0.033602599
FEE 12/31/92 0.448 14.086481 0.031803543
FEE 12/31/93 0.448 15.322262 0.029238503
FEE 12/31/94 0.448 15.705992 0.028524145
FEE 12/31/95 0.448 16.915435 0.026484687
FEE 12/31/96 0.448 19.16954 0.02337041
FEE 12/31/97 0.448 21.479229 0.020857359
RESULTING VALUE 12/31/97 21.479229 115.3760163 2478.187876
10
FORMULA: 1000*(1+T)= 2478.187876 - (0.85 * 1000 * 0)
= 2478.187876
T = 9.50%
R = 147.82%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII DIVIDEND GROWTH
3/2/90
TO NO. YEARS 7.832991102
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 3/2/90 1000 12.116743 82.53042918
1 FEE 3/2/91 0.448 12.541618 0.035721069 0.06
2 FEE 3/2/92 0.448 14.064146 0.031854049 0.05
3 FEE 3/2/93 0.448 15.609244 0.028700942 0.04
4 3/2/94 0.448 16.62428 0.026948536 0.03
5 3/2/95 0.448 16.975001 0.026391751 0.02
6 3/2/96 0.448 22.793486 0.019654738 0.01
7 3/2/97 0.448 27.235121 0.016449349 0
8 12/31/97 0.448 32.498223 0.013785369 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 32.498223 82.33092337 2675.608708
7.832991102
FORMULA: 1000*(1+T)= 2675.608708
= 2675.608708
T = 13.39%
R = 167.56%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII UTILITIES
3/2/90
TO NO. YEARS 7.832991102
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 3/2/90 1000 10.139456 98.62462049
1 FEE 3/2/91 0.448 10.87726 0.041186843 0.06
2 FEE 3/2/92 0.448 12.044534 0.037195295 0.05
3 FEE 3/2/93 0.448 14.998187 0.029870277 0.04
4 3/2/94 0.448 15.07037 0.029727206 0.03
5 3/2/95 0.448 14.678652 0.030520514 0.02
6 3/2/96 0.448 18.108068 0.024740353 0.01
7 3/2/97 0.448 19.447702 0.023036141 0
8 12/31/97 0.448 24.140294 0.018558183 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 24.140294 98.38978568 2375.158353
7.832991102
FORMULA: 1000*(1+T)= 2375.158353
= 2375.158353
T = 11.68%
R = 137.52%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EUROPEAN GROWTH
3/1/91
TO NO. YEARS 6.836413415
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 3/1/91 1000 10.060892 99.39476539
1 FEE 3/1/92 0.448 10.355745 0.043261011 0.06
2 FEE 3/1/93 0.448 10.781544 0.04155249 0.05
3 FEE 3/1/94 0.448 14.808589 0.030252713 0.04
4 3/1/95 0.448 15.681955 0.028567867 0.03
5 3/1/96 0.448 19.927472 0.022481527 0.02
6 3/1/97 0.448 24.386002 0.018371195 0.01
7 12/31/97 0.448 27.791611 0.016119972 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 27.791611 99.19415862 2756.76547
6.836413415
FORMULA: 1000*(1+T)= 2756.76547
= 2756.76547
T = 15.99%
R = 175.68%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL GROWTH
3/1/91
TO NO. YEARS 6.836413415
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 3/1/91 1000 10.060832 99.39535816
1 FEE 3/1/92 0.448 12.199795 0.036721929 0.06
2 FEE 3/1/93 0.448 11.88483 0.037695112 0.05
3 FEE 3/1/94 0.448 11.771223 0.038058917 0.04
4 3/1/95 0.448 12.162557 0.03683436 0.03
5 3/1/96 0.448 15.732296 0.028476454 0.02
6 3/1/97 0.448 16.858387 0.02657431 0.01
7 12/31/97 0.448 20.120513 0.022265834 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 20.120513 99.16873124 1995.325746
6.836413415
FORMULA: 1000*(1+T)= 1995.325746
= 1995.325746
T = 10.63%
R = 99.53%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII PACIFIC GROWTH
2/22/94
TO NO. YEARS 3.854893908
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 2/22/94 1000 10.021919 99.78128939
1 FEE 2/22/95 0.448 8.63509 0.051881335 0.06
2 FEE 2/22/96 0.448 10.396899 0.043089771 0.05
3 FEE 2/22/97 0.448 9.940823 0.045066691 0.04
4 12/31/97 0.448 6.042153 0.074145756 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 6.042153 99.56710584 601.5996872
3.854893908
FORMULA: 1000*(1+T)= 601.5996872
= 576.0996872
T = -13.33%
R = -42.39%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII GLOBAL DIVIDEND GROWTH
2/22/94
TO NO. YEARS 3.854893908
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 2/22/94 1000 10.021914 99.78133917
1 FEE 2/22/95 0.448 9.9857 0.044864156 0.06
2 FEE 2/22/96 0.448 12.272756 0.036503618 0.05
3 FEE 2/22/97 0.448 13.868112 0.032304325 0.04
4 12/31/97 0.448 15.260474 0.029356886 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 15.260474 99.63831019 1520.527842
3.854893908
FORMULA: 1000*(1+T)= 1520.527842
= 1495.027842
T = 11.00%
R = 49.50%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL APPRECIATION
1/21/97
TO NO. YEARS 0.941820671
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/21/97 1000 10 100
1 FEE 12/31/97 0.448 11.163269 0.040131614 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 11.163269 99.95986839 1115.8789
0.941820671
FORMULA: 1000*(1+T)= 1115.8789
= 1064.8789
T = 6.90%
R = 6.49%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INCOME BUILDER
1/21/97
TO NO. YEARS 0.941820671
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/21/97 1000 10 100
1 FEE 12/31/97 0.448 12.068959 0.03712002 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 12.068959 99.96287998 1206.4479
0.941820671
FORMULA: 1000*(1+T)= 1206.4479
= 1155.4479
T = 16.58%
R = 15.54%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY GROWTH
1/2/97
TO NO. YEARS 0.993839836
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/2/97 1000 10 100
1 FEE 12/31/97 0.448 13.110994 0.034169797 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 13.110994 99.9658302 1310.6514
0.993839836
FORMULA: 1000*(1+T)= 1310.6514
= 1259.6514
T = 26.15%
R = 25.97%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INTERNATIONAL MAGNUM
1/2/97
TO NO. YEARS 0.993839836
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/2/97 1000 10 100
1 FEE 12/31/97 0.448 10.574532 0.042365941 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 10.574532 99.95763406 1057.0052
0.993839836
FORMULA: 1000*(1+T)= 1057.0052
= 1006.0052
T = 0.60%
R = 0.60%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING MARKETS
10/1/96
TO NO. YEARS 1.248459959
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/1/96 1000 10 100
1 FEE 10/1/97 0.448 11.923567 0.037572649 0.06
2 FEE 12/31/97 0.448 9.647291 0.046437907 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 9.647291 99.91598944 963.9186257
1.248459959
FORMULA: 1000*(1+T)= 963.9186257
= 921.4186257
T = -6.35%
R = -7.86%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING GROWTH
7/3/95
TO NO. YEARS 2.496919918
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 7/3/95 1000 10 100
1 FEE 7/3/96 0.448 13.528207 0.033115992 0.06
2 FEE 7/3/97 0.448 14.766407 0.030339134 0.05
3 FEE 12/31/97 0.448 15.853533 0.028258685 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 15.853533 99.90828619 1583.899312
2.496919918
FORMULA: 1000*(1+T)= 1583.899312
= 1549.899312
T = 19.18%
R = 54.99%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Non-Standardized Calculations
Dates:
Current: 12/31/97
3 Months Ago: 9/30/97
End of Last Year: 12/31/96
One Yr Ago: 12/31/96
Two Yrs Ago: 12/29/95
Three Yrs Ago: 12/31/94
Five Yrs Ago: 12/31/92
Ten Yrs Ago: 12/31/87
Inception Inception Ten Yr Five Yr Three Two One Yr YTD 3 Months Today's
Fund Date AUV AUV AUV AUV AUV AUV AUV AUV AUV
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market 10/25/90 10.066205 N/A 10.805244 11.196088 11.650626 12.065489 12.065489 12.394005 12.510584
High Yield 10/25/90 10.069557 N/A 16.40258 19.33797 21.854658 24.111603 24.111603 26.241467 26.576588
Equity 10/25/90 10.065409 N/A 16.660353 18.210988 25.858344 28.625797 28.625797 38.599941 38.763896
Quality Income 10/25/90 10.06537 N/A 13.040873 13.32689 16.369534 16.378885 16.378885 17.396254 17.931874
Managed Assets 10/25/90 10.065382 N/A 14.086481 15.705992 16.915435 19.16954 19.16954 21.914572 21.479229
Dividend Growth 10/25/90 10.065378 N/A 14.89886 16.087197 21.50005 26.258516 26.258516 32.545314 32.498223
Utilities 10/25/90 10.065395 N/A 13.891409 14.206834 17.994919 19.26819 19.26819 21.523067 24.140294
European Growth 3/1/91 10.060892 N/A 10.318344 15.314253 18.971796 24.297886 24.297886 28.404961 27.791611
Capital Growth 3/1/91 10.060832 N/A 12.778358 11.335731 14.919563 16.396546 16.396546 21.653341 20.120513
Pacific Growth 2/22/94 10.021919 N/A N/A 9.140518 9.616944 9.843217 9.843217 8.373836 6.042153
Global Div Growth 2/22/94 10.021914 N/A N/A 9.90589 11.932293 13.823682 13.823682 16.069908 15.260474
Capital Appreciation 1/21/97 10 N/A N/A N/A N/A N/A 10 12.353276 11.163269
Income Builder 1/21/97 10 N/A N/A N/A N/A N/A 10 11.764447 12.068959
Equity Growth 1/2/97 10 N/A N/A N/A N/A N/A 10 12.699925 13.110994
International Magnum 1/2/97 10 N/A N/A N/A N/A N/A 10 11.483185 10.574532
Emerging Markets 10/1/96 10 N/A N/A N/A N/A 9.761094 9.761094 11.894437 9.647291
Emerging Growth 7/3/95 10 N/A N/A N/A 11.625387 13.360923 13.360923 16.880207 15.853533
<PAGE>
<CAPTION>
Non-Standardized Performance
Inception
Total Average Ten Years Five Years Three Years Two Years
Total Average Total Average Total Average Total Average
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
24.28% 3.07% N/A N/A 15.78% 2.97% 11.74% 3.77% 7.38% 3.62%
163.93% 14.45% N/A N/A 62.03% 10.13% 37.43% 11.18% 21.61% 10.28%
285.12% 20.63% N/A N/A 132.67% 18.40% 112.86% 28.64% 49.91% 22.44%
78.15% 8.36% N/A N/A 37.51% 6.58% 34.55% 10.40% 9.54% 4.66%
113.40% 11.12% N/A N/A 52.48% 8.80% 36.76% 11.00% 26.98% 12.69%
222.87% 17.71% N/A N/A 118.13% 16.88% 102.01% 26.41% 51.15% 22.94%
139.83% 12.94% N/A N/A 73.78% 11.69% 69.92% 19.33% 34.15% 15.82%
176.23% 16.01% N/A N/A 169.34% 21.92% 81.48% 21.98% 46.49% 21.03%
99.99% 10.66% N/A N/A 57.46% 9.50% 77.50% 21.08% 34.86% 16.13%
-39.71% -12.29% N/A N/A N/A N/A -33.90% -12.89% -37.17% -20.74%
52.27% 11.52% N/A N/A N/A N/A 54.05% 15.49% 27.89% 13.09%
11.63% 12.39% N/A N/A N/A N/A N/A N/A N/A N/A
20.69% 22.08% N/A N/A N/A N/A N/A N/A N/A N/A
31.11% 31.31% N/A N/A N/A N/A N/A N/A N/A N/A
5.75% 5.78% N/A N/A N/A N/A N/A N/A N/A N/A
-3.53% -2.83% N/A N/A N/A N/A N/A N/A N/A N/A
58.54% 20.25% N/A N/A N/A N/A N/A N/A 36.37% 16.78%
<PAGE>
<CAPTION>
One Year YTD Three Months
<S> <C> <C>
3.69% 3.69% 0.94%
10.22% 10.22% 1.28%
35.42% 35.42% 0.42%
9.48% 9.48% 3.08%
12.05% 12.05% -1.99%
23.76% 23.76% -0.14%
25.29% 25.29% 12.16%
14.38% 14.38% -2.16%
22.71% 22.71% -7.08%
-38.62% -38.62% -27.84%
10.39% 10.39% -5.04%
N/A 11.63% -9.63%
N/A 20.69% 2.59%
N/A 31.11% 3.24%
N/A 5.75% -7.91%
-1.17% -1.17% -18.89%
18.66% 18.66% -6.08%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII MONEY MARKET
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 11.905367 83.99573067
FEE 12/31/97 0.448 12.330983 0.036331248
RESULTING VALUE 12/31/97 12.330983 83.95939942 1035.302
1
FORMULA: 1000*(1+T)= 1035.301927 - (0.85 * 1000 * 0.05)
= 992.8019269
T = -0.72%
R = -0.72%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII HIGH YIELD
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 23.783763 42.04549129
FEE 12/31/97 0.448 26.186425 0.017108101
RESULTING VALUE 12/31/97 26.186425 42.02838319 1100.573
1
FORMULA: 1000*(1+T)= 1100.573104 - (0.85 * 1000 * 0.05)
= 1058.073104
T = 5.81%
R = 5.81%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 28.248188 35.40050073
FEE 12/31/97 0.448 38.210604 0.011724494
RESULTING VALUE 12/31/97 38.210604 35.38877624 1352.227
1
FORMULA: 1000*(1+T)= 1352.226515 - (0.85 * 1000 * 0.05)
= 1309.726515
T = 30.97%
R = 30.97%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII QUALITY INCOME
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 16.162888 61.87013113
FEE 12/31/97 0.448 17.675955 0.025345165
RESULTING VALUE 12/31/97 17.675955 61.84478596 1093.166
1
FORMULA: 1000*(1+T)= 1093.165654 - (0.85 * 1000 * 0.05)
= 1050.665654
T = 5.07%
R = 5.07%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII STRATEGIST
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 18.916699 52.86334577
FEE 12/31/97 0.448 21.172661 0.021159362
RESULTING VALUE 12/31/97 21.172661 52.8421864 1118.81
1
FORMULA: 1000*(1+T)= 1118.809699 - (0.85 * 1000 * 0.05)
= 1076.309699
T = 7.63%
R = 7.63%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII DIVIDEND GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 25.912299 38.59171276
FEE 12/31/97 0.448 32.034547 0.013984902
RESULTING VALUE 12/31/97 32.034547 38.57772786 1235.82
1
FORMULA: 1000*(1+T)= 1235.820036 - (0.85 * 1000 * 0.05)
= 1193.320036
T = 19.33%
R = 19.33%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII UTILITIES
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 19.014042 52.59271017
FEE 12/31/97 0.448 23.795739 0.0188269
RESULTING VALUE 12/31/97 23.795739 52.57388327 1251.034
1
FORMULA: 1000*(1+T)= 1251.034404 - (0.85 * 1000 * 0.05)
= 1208.534404
T = 20.85%
R = 20.85%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EUROPEAN GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 23.997344 41.67127829
FEE 12/31/97 0.448 27.417722 0.016339797
RESULTING VALUE 12/31/97 27.417722 41.65493849 1142.084
1
FORMULA: 1000*(1+T)= 1142.083523 - (0.85 * 1000 * 0.05)
= 1099.583523
T = 9.96%
R = 9.96%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 16.193773 61.75213151
FEE 12/31/97 0.448 19.849883 0.022569403
RESULTING VALUE 12/31/97 19.849883 61.72956211 1225.325
FORMULA: 1000*(1+T)= 1225.324586 - (0.85 * 1000 * 0.05)
= 1182.824586
T = 18.28%
R = 18.28%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII PACIFIC GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 9.790881 102.1358548
FEE 12/31/97 0.448 6.003407 0.074624293
RESULTING VALUE 12/31/97 6.003407 102.0612305 612.7151
1
FORMULA: 1000*(1+T)= 612.7151055 - (0.85 * 1000 * 0.05)
= 570.2151055
T = -42.98%
R = -42.98%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII GLOBAL DIVIDEND GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 13.750233 72.72604035
FEE 12/31/97 0.448 15.162705 0.029546179
RESULTING VALUE 12/31/97 15.162705 72.69649417 1102.275
1
FORMULA: 1000*(1+T)= 1102.275496 - (0.85 * 1000 * 0.05)
= 1059.775496
T = 5.98%
R = 5.98%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL APPRECIATION
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 #VALUE! #VALUE!
FEE 12/31/97 0.448 11.1517 0.040173247
RESULTING VALUE 12/31/97 11.1517 #VALUE! #VALUE!
1
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INCOME BUILDER
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 #VALUE! #VALUE!
FEE 12/31/97 0.448 12.056457 0.037158512
RESULTING VALUE 12/31/97 12.056457 #VALUE! #VALUE!
1
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 #VALUE! #VALUE!
FEE 12/31/97 0.448 13.096683 0.034207135
RESULTING VALUE 12/31/97 13.096683 #VALUE! #VALUE!
1
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII INTERNATIONAL MAGNUM
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 #VALUE! #VALUE!
FEE 12/31/97 0.448 10.562966 0.04241233
RESULTING VALUE 12/31/97 10.562966 #VALUE! #VALUE!
1
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING MARKETS
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 9.75842 102.4756057
FEE 12/31/97 0.448 9.634048 0.04650174
RESULTING VALUE 12/31/97 9.634048 102.4291039 986.8069
1
FORMULA: 1000*(1+T)= 986.806904 - (0.85 * 1000 * 0.05)
= 944.306904
T = -5.57%
R = -5.57%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING GROWTH
12/31/96 NO. YEARS 1
TO
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/96 1000 13.338966 74.96832963
FEE 12/31/97 0.448 15.81009 0.028336335
RESULTING VALUE 12/31/97 15.81009 74.93999329 1184.808
1
FORMULA: 1000*(1+T)= 1184.808039 - (0.85 * 1000 * 0.05)
= 1142.308039
T = 14.23%
R = 14.23%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII MONEY MARKET
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 10.708868 93.38055152
FEE 12/31/93 0.448 10.829712 0.041367674
FEE 12/31/94 0.448 11.071838 0.04046302
FEE 12/31/95 0.448 11.508735 0.038926954
FEE 12/31/96 0.448 11.905367 0.037630087
FEE 12/31/97 0.448 12.330983 0.036331248
RESULTING VALUE 12/31/97 12.330983 93.18583254 1149.072917
5
FORMULA: 1000*(1+T)= 1149.072917 - (0.85 * 1000 * 0.01)
= 1140.572917
T = 2.67%
R = 14.06%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII HIGH YIELD
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 16.250889 61.5350951
FEE 12/31/93 0.448 19.862432 0.022555143
FEE 12/31/94 0.448 19.117027 0.023434606
FEE 12/31/95 0.448 21.581341 0.020758673
FEE 12/31/96 0.448 23.783763 0.01883638
FEE 12/31/97 0.448 26.186425 0.017108101
RESULTING VALUE 12/31/97 26.186425 61.43240219 1608.694993
5
FORMULA: 1000*(1+T)= 1608.694993 - (0.85 * 1000 * 0.01)
= 1600.194993
T = 9.86%
R = 60.02%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 16.51307 60.55809126
FEE 12/31/93 0.448 19.455923 0.023026407
FEE 12/31/94 0.448 18.010317 0.024874632
FEE 12/31/95 0.448 25.545466 0.017537359
FEE 12/31/96 0.448 28.248188 0.015859424
FEE 12/31/97 0.448 38.210604 0.011724494
RESULTING VALUE 12/31/97 38.210604 60.46506894 2310.406805
5
FORMULA: 1000*(1+T)= 2310.406805 - (0.85 * 1000 * 0.01)
= 2301.906805
T = 18.15%
R = 130.19%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII QUALITY INCOME
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 12.925627 77.36568601
FEE 12/31/93 0.448 14.377142 0.031160574
FEE 12/31/94 0.448 13.180086 0.033990674
FEE 12/31/95 0.448 16.171531 0.027703005
FEE 12/31/96 0.448 16.162888 0.027717819
FEE 12/31/97 0.448 17.675955 0.025345165
RESULTING VALUE 12/31/97 17.675955 77.21976878 1364.933158
5
FORMULA: 1000*(1+T)= 1364.933158 - (0.85 * 1000 * 0.01)
= 1356.433158
T = 6.29%
R = 35.64%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII STRATEGIST
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 13.961977 71.62309464
FEE 12/31/93 0.448 15.170142 0.029531695
FEE 12/31/94 0.448 15.532966 0.028841884
FEE 12/31/95 0.448 16.710795 0.026809018
FEE 12/31/96 0.448 18.916699 0.023682779
FEE 12/31/97 0.448 21.172661 0.021159362
RESULTING VALUE 12/31/97 21.172661 71.4930699 1513.698533
5
FORMULA: 1000*(1+T)= 1513.698533 - (0.85 * 1000 * 0.01)
= 1505.198533
T = 8.52%
R = 50.52%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII DIVIDEND GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 14.767228 67.71751611
FEE 12/31/93 0.448 16.619291 0.026956625
FEE 12/31/94 0.448 15.910016 0.028158363
FEE 12/31/95 0.448 21.240032 0.021092247
FEE 12/31/96 0.448 25.912299 0.017289087
FEE 12/31/97 0.448 32.034547 0.013984902
RESULTING VALUE 12/31/97 32.034547 67.61003489 2165.85684
5
FORMULA: 1000*(1+T)= 2165.85684 - (0.85 * 1000 * 0.01)
= 2157.35684
T = 16.62%
R = 115.74%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII UTILITIES
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 13.768616 72.62894106
FEE 12/31/93 0.448 15.678167 0.028574769
FEE 12/31/94 0.448 14.050329 0.031885374
FEE 12/31/95 0.448 17.777227 0.025200781
FEE 12/31/96 0.448 19.014042 0.023561534
FEE 12/31/97 0.448 23.795739 0.0188269
RESULTING VALUE 12/31/97 23.795739 72.50089171 1725.212296
5
FORMULA: 1000*(1+T)= 1725.212296 - (0.85 * 1000 * 0.01)
= 1716.712296
T = 11.41%
R = 71.67%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EUROPEAN GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 10.235625 97.69799109
FEE 12/31/93 0.448 14.193446 0.031563864
FEE 12/31/94 0.448 15.158111 0.029555134
FEE 12/31/95 0.448 18.757836 0.023883352
FEE 12/31/96 0.448 23.997344 0.018668733
FEE 12/31/97 0.448 27.417722 0.016339797
RESULTING VALUE 12/31/97 27.417722 97.57798021 2675.365935
5
FORMULA: 1000*(1+T)= 2675.365935 - (0.85 * 1000 * 0.01)
= 2666.865935
T = 21.67%
R = 166.69%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 12.675973 78.88940754
FEE 12/31/93 0.448 11.603628 0.038608614
FEE 12/31/94 0.448 11.220177 0.039928069
FEE 12/31/95 0.448 14.751346 0.03037011
FEE 12/31/96 0.448 16.193773 0.027664955
FEE 12/31/97 0.448 19.849883 0.022569403
RESULTING VALUE 12/31/97 19.849883 78.73026639 1562.786576
5
FORMULA: 1000*(1+T)= 1562.786576 - (0.85 * 1000 * 0.01)
= 1554.286576
T = 9.22%
R = 55.43%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII PACIFIC GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 9.111947 0.049166221
FEE 12/31/95 0.448 9.576398 0.046781681
FEE 12/31/96 0.448 9.790881 0.045756863
FEE 12/31/97 0.448 6.003407 0.074624293
RESULTING VALUE 12/31/97 6.003407 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII GLOBAL DIVIDEND GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 9.87493 0.04536741
FEE 12/31/95 0.448 11.882013 0.037704049
FEE 12/31/96 0.448 13.750233 0.032581266
FEE 12/31/97 0.448 15.162705 0.029546179
RESULTING VALUE 12/31/97 15.162705 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL APPRECIATION
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 #VALUE! #VALUE!
FEE 12/31/96 0.448 #VALUE! #VALUE!
FEE 12/31/97 0.448 11.1517 0.040173247
RESULTING VALUE 12/31/97 11.1517 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INCOME BUILDER
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 #VALUE! #VALUE!
FEE 12/31/96 0.448 #VALUE! #VALUE!
FEE 12/31/97 0.448 12.056457 0.037158512
RESULTING VALUE 12/31/97 12.056457 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 #VALUE! #VALUE!
FEE 12/31/96 0.448 #VALUE! #VALUE!
FEE 12/31/97 0.448 13.096683 0.034207135
RESULTING VALUE 12/31/97 13.096683 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII INTERNATIONAL MAGNUM
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 #VALUE! #VALUE!
FEE 12/31/96 0.448 #VALUE! #VALUE!
FEE 12/31/97 0.448 10.562966 0.04241233
RESULTING VALUE 12/31/97 10.562966 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING MARKETS
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 #VALUE! #VALUE!
FEE 12/31/96 0.448 9.75842 0.045909071
FEE 12/31/97 0.448 9.634048 0.04650174
RESULTING VALUE 12/31/97 9.634048 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING GROWTH
12/30/92
TO NO. YEARS 5
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/92 1000 #VALUE! #VALUE!
FEE 12/31/93 0.448 #VALUE! #VALUE!
FEE 12/31/94 0.448 #VALUE! #VALUE!
FEE 12/31/95 0.448 11.619124 0.038557124
FEE 12/31/96 0.448 13.338966 0.033585812
FEE 12/31/97 0.448 15.81009 0.028336335
RESULTING VALUE 12/31/97 15.81009 #VALUE! #VALUE!
5
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.01)
= #VALUE!
T = N/A
R = N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII MONEY MARKET
10/25/90
TO NO. YEARS 7.184120465
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 10/25/90 1000 10 100
1FEE 10/25/91 0.448 10.459855 0.042830422 0.06
2FEE 10/25/92 0.448 10.681307 0.041942433 0.05
3FEE 10/25/93 0.448 10.80727 0.041453577 0.04
4 10/25/94 0.448 11.000066 0.040727028 0.03
5 10/25/95 0.448 11.43423 0.039180601 0.02
6 10/25/96 0.448 11.831524 0.037864945 0.01
7 10/25/97 0.448 12.248247 0.036576663 0
8 12/31/97 0.448 12.330983 0.036331248 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 12.330983 99.68309308 1229.190526
7.184120465
FORMULA: 1000*(1+T)= 1229.190526
= 1229.190526
T = 2.91%
R = 22.92%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII HIGH YIELD
10/25/90
TO NO. YEARS 7.184120465
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 10/25/90 1000 10 100
1FEE 10/25/91 0.448 13.867314 0.032306184 0.06
2FEE 10/25/92 0.448 16.233991 0.027596418 0.05
3FEE 10/25/93 0.448 19.204205 0.023328224 0.04
4 10/25/94 0.448 19.128129 0.023421005 0.03
5 10/25/95 0.448 21.268794 0.021063724 0.02
6 10/25/96 0.448 23.31404 0.019215889 0.01
7 10/25/97 0.448 25.961176 0.017256537 0
8 12/31/97 0.448 26.186425 0.017108101 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 26.186425 99.81870392 2613.895004
7.184120465
FORMULA: 1000*(1+T)= 2613.895004
= 2613.895004
T = 14.31%
R = 161.39%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY
10/25/90
TO NO. YEARS 7.184120465
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 10/25/90 1000 10 100
1FEE 10/25/91 0.448 14.523576 0.030846398 0.06
2FEE 10/25/92 0.448 15.104047 0.029660925 0.05
3FEE 10/25/93 0.448 19.798041 0.022628501 0.04
4 10/25/94 0.448 18.266185 0.024526194 0.03
5 10/25/95 0.448 23.879799 0.018760627 0.02
6 10/25/96 0.448 27.540367 0.016267031 0.01
7 10/25/97 0.448 37.541273 0.011933532 0
8 12/31/97 0.448 38.210604 0.011724494 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 38.210604 99.8336523 3814.704154
7.184120465
FORMULA: 1000*(1+T)= 3814.704154
= 3814.704154
T = 20.49%
R = 281.47%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII QUALITY INCOME
10/25/90
TO NO. YEARS 7.184120465
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 10/25/90 1000 10 100
1FEE 10/25/91 0.448 11.489411 0.038992425 0.06
2FEE 10/25/92 0.448 12.599521 0.035556907 0.05
3FEE 10/25/93 0.448 14.546527 0.030797729 0.04
4 10/25/94 0.448 13.016184 0.03441869 0.03
5 10/25/95 0.448 15.605654 0.028707544 0.02
6 10/25/96 0.448 15.918424 0.02814349 0.01
7 10/25/97 0.448 17.296779 0.025900776 0
8 12/31/97 0.448 17.675955 0.025345165 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 17.675955 99.75213727 1763.21429
7.184120465
FORMULA: 1000*(1+T)= 1763.21429
= 1763.21429
T = 8.21%
R = 76.32%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII STRATEGIST
10/25/90
TO NO. YEARS 7.184120465
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 10/25/90 1000 10 100
1FEE 10/25/91 0.448 12.334542 0.036320765 0.06
2FEE 10/25/92 0.448 13.457068 0.033291056 0.05
3FEE 10/25/93 0.448 14.979849 0.029906844 0.04
4 10/25/94 0.448 15.440267 0.029015042 0.03
5 10/25/95 0.448 16.243313 0.02758058 0.02
6 10/25/96 0.448 18.179915 0.024642579 0.01
7 10/25/97 0.448 21.285809 0.021046886 0
8 12/31/97 0.448 21.172661 0.021159362 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 21.172661 99.77703689 2112.545378
7.184120465
FORMULA: 1000*(1+T)= 2112.545378
= 2112.545378
T = 10.97%
R = 111.25%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII DIVIDEND GROWTH
10/25/90
TO NO. YEARS 7.184120465
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 10/25/90 1000 10 100
1FEE 10/25/91 0.448 13.047578 0.034335874 0.06
2FEE 10/25/92 0.448 14.276117 0.031381082 0.05
3FEE 10/25/93 0.448 16.325837 0.027441166 0.04
4 10/25/94 0.448 16.012048 0.027978932 0.03
5 10/25/95 0.448 19.900968 0.022511468 0.02
6 10/25/96 0.448 24.524081 0.018267759 0.01
7 10/25/97 0.448 31.789831 0.014092557 0
8 12/31/97 0.448 32.034547 0.013984902 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 32.034547 99.81000626 3197.368337
7.184120465
FORMULA: 1000*(1+T)= 3197.368337
= 3197.368337
T = 17.56%
R = 219.74%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII UTILITIES
10/25/90
TO NO. YEARS 7.184120465
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 10/25/90 1000 10 100
1FEE 10/25/91 0.448 11.592705 0.038644993 0.06
2FEE 10/25/92 0.448 12.936041 0.034631925 0.05
3FEE 10/25/93 0.448 16.104178 0.027818868 0.04
4 10/25/94 0.448 14.206767 0.031534268 0.03
5 10/25/95 0.448 16.821261 0.026632962 0.02
6 10/25/96 0.448 18.256079 0.024539771 0.01
7 10/25/97 0.448 21.53085 0.020807353 0
8 12/31/97 0.448 23.795739 0.0188269 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 23.795739 99.77656296 2374.257051
7.184120465
FORMULA: 1000*(1+T)= 2374.257051
= 2374.257051
T = 12.79%
R = 137.43%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EUROPEAN GROWTH
3/1/91
TO NO. YEARS 6.836413415
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 3/1/91 1000 10 100
1FEE 3/1/92 0.448 10.281855 0.043571904 0.06
2FEE 3/1/93 0.448 10.693178 0.04189587 0.05
3FEE 3/1/94 0.448 14.671083 0.03053626 0.04
4 3/1/95 0.448 15.519258 0.02886736 0.03
5 3/1/96 0.448 19.699013 0.022742256 0.02
6 3/1/97 0.448 24.080107 0.018604568 0.01
7 12/31/97 0.448 27.417722 0.016339797 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 27.417722 99.79744199 2736.218521
6.836413415
FORMULA: 1000*(1+T)= 2736.218521
= 2736.218521
T = 15.86%
R = 173.62%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL GROWTH
3/1/91
TO NO. YEARS 6.836413415
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 3/1/91 1000 10 100
1FEE 3/1/92 0.448 12.112815 0.036985622 0.06
2FEE 3/1/93 0.448 11.787466 0.038006472 0.05
3FEE 3/1/94 0.448 11.661952 0.038415524 0.04
4 3/1/95 0.448 12.036405 0.037220416 0.03
5 3/1/96 0.448 15.55198 0.028806621 0.02
6 3/1/97 0.448 16.64696 0.026911821 0.01
7 12/31/97 0.448 19.849883 0.022569403 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 19.849883 99.77108412 1980.444347
6.836413415
FORMULA: 1000*(1+T)= 1980.444347
= 1980.444347
T = 10.51%
R = 98.04%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII PACIFIC GROWTH
2/22/94
TO NO. YEARS 3.854893908
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 2/22/94 1000 10 100
1FEE 2/22/95 0.448 8.606719 0.052052356 0.06
2FEE 2/22/96 0.448 10.351365 0.043279316 0.05
3FEE 2/22/97 0.448 9.886421 0.04531468 0.04
4 12/31/97 0.448 6.003407 0.074624293 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 6.003407 99.78472936 599.0483427
3.854893908
FORMULA: 1000*(1+T)= 599.0483427
= 573.5483427
T = -13.43%
R = -42.65%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII GLOBAL DIVIDEND GROWTH
2/22/94
TO NO. YEARS 3.854893908
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 2/22/94 1000 10 100
1FEE 2/22/95 0.448 9.952901 0.045012002 0.06
2FEE 2/22/96 0.448 12.219025 0.036664136 0.05
3FEE 2/22/97 0.448 13.792264 0.032481977 0.04
4 12/31/97 0.448 15.162705 0.029546179 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 15.162705 99.85629571 1514.091554
3.854893908
FORMULA: 1000*(1+T)= 1514.091554
= 1488.591554
T = 10.87%
R = 48.86%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL APPRECIATION
1/21/97
TO NO. YEARS 0.941820671
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 1/21/97 1000 10 100
1FEE 12/31/97 0.448 11.1517 0.040173247 0.06
2FEE N/A 0 N/A 0 0.05
3FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 11.1517 99.95982675 1114.722
0.941820671
FORMULA: 1000*(1+T)= 1114.722
= 1063.722
T = 6.78%
R = 6.37%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INCOME BUILDER
1/21/97
TO NO. YEARS 0.941820671
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 1/21/97 1000 10 100
1FEE 12/31/97 0.448 12.056457 0.037158512 0.06
2FEE N/A 0 N/A 0 0.05
3FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 12.056457 99.96284149 1205.1977
0.941820671
FORMULA: 1000*(1+T)= 1205.1977
= 1154.1977
T = 16.45%
R = 15.42%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY GROWTH
1/2/97
TO NO. YEARS 0.993839836
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 1/2/97 1000 10 100
1FEE 12/31/97 0.448 13.096683 0.034207135 0.06
2FEE N/A 0 N/A 0 0.05
3FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 13.096683 99.96579287 1309.2203
0.993839836
FORMULA: 1000*(1+T)= 1309.2203
= 1258.2203
T = 26.00%
R = 25.82%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INTERNATIONAL MAGNUM
1/2/97
TO NO. YEARS 0.993839836
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 1/2/97 1000 10 100
1FEE 12/31/97 0.448 10.562966 0.04241233 0.06
2FEE N/A 0 N/A 0 0.05
3FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 10.562966 99.95758767 1055.8486
0.993839836
FORMULA: 1000*(1+T)= 1055.8486
= 1004.8486
T = 0.49%
R = 0.48%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING MARKETS
10/1/96
TO NO. YEARS 1.248459959
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 10/1/96 1000 10 100
1FEE 10/1/97 0.448 11.910475 0.037613949 0.06
2FEE 12/31/97 0.448 9.634048 0.04650174 0.05
3FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 9.634048 99.91588431 962.5944254
1.248459959
FORMULA: 1000*(1+T)= 962.5944254
= 920.0944254
T = -6.45%
R = -7.99%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING GROWTH
7/3/95
TO NO. YEARS 2.496919918
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
<S> <C> <C> <C> <C> <C> <C>
0INIT DEPOSIT 7/3/95 1000 10 100
1FEE 7/3/96 0.448 13.513333 0.033152443 0.06
2FEE 7/3/97 0.448 14.733975 0.030405916 0.05
3FEE 12/31/97 0.448 15.81009 0.028336335 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14FEE N/A 0 N/A 0 0
15FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 15.81009 99.90810531 1579.556137
2.496919918
FORMULA: 1000*(1+T)= 1579.556137
= 1545.556137
T = 19.05%
R = 54.56%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII MONEY MARKET
12/31/87
TO NO. YEARS 10
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/87 1000 8.397714 119.0800258
FEE 12/31/88 0.448 8.862911 0.050547726
FEE 12/31/89 0.448 9.51332 0.047091867
FEE 12/31/90 0.448 10.10648 0.044327996
FEE 12/31/91 0.448 10.519202 0.042588782
FEE 12/31/92 0.448 10.708868 0.041834487
FEE 12/31/93 0.448 10.829712 0.041367674
FEE 12/31/94 0.448 11.071838 0.04046302
FEE 12/31/95 0.448 11.508735 0.038926954
FEE 12/31/96 0.448 11.905367 0.037630087
FEE 12/31/97 0.448 12.330983 0.036331248
RESULTING VALUE 12/31/97 12.330983 118.658916 1463.181
10
FORMULA: 1000*(1+T)= 1463.181076 - (0.85 * 1000 * 0)
= 1463.181076
T = 3.88%
R = 46.32%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII HIGH YIELD
12/31/87
TO NO. YEARS 10
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/87 1000 13.184852 75.8446132
FEE 12/31/88 0.448 14.407168 0.031095632
FEE 12/31/89 0.448 12.394992 0.03614363
FEE 12/31/90 0.448 8.928469 0.050176576
FEE 12/31/91 0.448 13.941981 0.032133167
FEE 12/31/92 0.448 16.250889 0.027567723
FEE 12/31/93 0.448 19.862432 0.022555143
FEE 12/31/94 0.448 19.117027 0.023434606
FEE 12/31/95 0.448 21.581341 0.020758673
FEE 12/31/96 0.448 23.783763 0.01883638
FEE 12/31/97 0.448 26.186425 0.017108101
RESULTING VALUE 12/31/97 26.186425 75.56480357 1978.772
10
FORMULA: 1000*(1+T)= 1978.772061 - (0.85 * 1000 * 0)
= 1978.772061
T = 7.06%
R = 97.88%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY
12/31/87
TO NO. YEARS 10
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/87 1000 8.935178 111.9171884
FEE 12/31/88 0.448 9.64204 0.046463197
FEE 12/31/89 0.448 11.281705 0.03971031
FEE 12/31/90 0.448 10.701099 0.041864859
FEE 12/31/91 0.448 16.751568 0.026743765
FEE 12/31/92 0.448 16.51307 0.027130025
FEE 12/31/93 0.448 19.455923 0.023026407
FEE 12/31/94 0.448 18.010317 0.024874632
FEE 12/31/95 0.448 25.545466 0.017537359
FEE 12/31/96 0.448 28.248188 0.015859424
FEE 12/31/97 0.448 38.210604 0.011724494
RESULTING VALUE 12/31/97 38.210604 111.642254 4265.918
10
FORMULA: 1000*(1+T)= 4265.917956 - (0.85 * 1000 * 0)
= 4265.917956
T = 15.61%
R = 326.59%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII QUALITY INCOME
12/31/87
TO NO. YEARS 10
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/87 1000 8.417949 118.7937822
FEE 12/31/88 0.448 8.902424 0.050323373
FEE 12/31/89 0.448 9.887111 0.045311517
FEE 12/31/90 0.448 10.398609 0.043082685
FEE 12/31/91 0.448 12.128755 0.036937015
FEE 12/31/92 0.448 12.925627 0.034659827
FEE 12/31/93 0.448 14.377142 0.031160574
FEE 12/31/94 0.448 13.180086 0.033990674
FEE 12/31/95 0.448 16.171531 0.027703005
FEE 12/31/96 0.448 16.162888 0.027717819
FEE 12/31/97 0.448 17.675955 0.025345165
RESULTING VALUE 12/31/97 17.675955 118.4375505 2093.497
10
FORMULA: 1000*(1+T)= 2093.496814 - (0.85 * 1000 * 0)
= 2093.496814
T = 7.67%
R = 109.35%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII STRATEGIST
12/31/87
TO NO. YEARS 10
12/31/97
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
<S> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 12/31/87 1000 8.669714 115.3440586
FEE 12/31/88 0.448 9.6248 0.046546422
FEE 12/31/89 0.448 10.484594 0.042729361
FEE 12/31/90 0.448 10.47884 0.042752824
FEE 12/31/91 0.448 13.228466 0.033866361
FEE 12/31/92 0.448 13.961977 0.032087146
FEE 12/31/93 0.448 15.170142 0.029531695
FEE 12/31/94 0.448 15.532966 0.028841884
FEE 12/31/95 0.448 16.710795 0.026809018
FEE 12/31/96 0.448 18.916699 0.023682779
FEE 12/31/97 0.448 21.172661 0.021159362
RESULTING VALUE 12/31/97 21.172661 115.0160518 2435.196
10
FORMULA: 1000*(1+T)= 2435.195874 - (0.85 * 1000 * 0)
= 2435.195874
T = 9.31%
R = 143.52%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII DIVIDEND GROWTH
3/2/90
TO NO. YEARS 7.832991102
12/31/97 SURRENDER
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 3/2/90 1000 12.125397 82.4715265
1 FEE 3/2/91 0.448 12.455402 0.035968329 0.06
2 FEE 3/2/92 0.448 13.95215 0.032109747 0.05
3 FEE 3/2/93 0.448 15.468493 0.028962097 0.04
4 3/2/94 0.448 16.456264 0.027223676 0.03
5 3/2/95 0.448 16.784958 0.026690564 0.02
6 3/2/96 0.448 22.513567 0.019899112 0.01
7 3/2/97 0.448 26.871271 0.016672081 0
8 12/31/97 0.448 32.034547 0.013984902 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 32.034547 82.27001599 2635.483
7.832991102
FORMULA: 1000*(1+T)= 2635.482694
= 2635.482694
T = 13.17%
R = 163.55%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII UTILITIES
3/2/90
TO NO. YEARS 7.832991102
12/31/97 SURRENDER
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
INIT DEPOSIT 3/2/90 1000 10.146697 98.55423888
1 FEE 3/2/91 0.448 10.802462 0.041472027 0.06
2 FEE 3/2/92 0.448 11.94858 0.037493995 0.05
3 FEE 3/2/93 0.448 14.862886 0.030142194 0.04
4 3/2/94 0.448 14.918016 0.030030803 0.03
5 3/2/95 0.448 14.514281 0.030866152 0.02
6 3/2/96 0.448 17.88562 0.025048055 0.01
7 3/2/97 0.448 19.187786 0.023348186 0
8 12/31/97 0.448 23.795739 0.0188269 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 23.795739 98.31701057 2339.526
7.832991102
fORMULA: 1000*(1+T)= 2339.525923
= 2339.525923
T = 11.46%
R = 133.95%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EUROPEAN GROWTH
3/1/91
TO NO. YEARS 6.836413415
12/31/97 SURRENDER
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 3/1/91 1000 10 100
1 FEE 3/1/92 0.448 10.281855 0.043571904 0.06
2 FEE 3/1/93 0.448 10.693178 0.04189587 0.05
3 FEE 3/1/94 0.448 14.671083 0.03053626 0.04
4 3/1/95 0.448 15.519258 0.02886736 0.03
5 3/1/96 0.448 19.699013 0.022742256 0.02
6 3/1/97 0.448 24.080107 0.018604568 0.01
7 12/31/97 0.448 27.417722 0.016339797 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 27.417722 99.79744199 2736.219
6.836413415
FORMULA: 1000*(1+T)= 2736.218521
= 2736.218521
T = 15.86%
R = 173.62%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL GROWTH
3/1/91
TO NO. YEARS 6.836413415
12/31/97 SURRENDER
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 3/1/91 1000 10 100
1 FEE 3/1/92 0.448 12.112815 0.036985622 0.06
2 FEE 3/1/93 0.448 11.787466 0.038006472 0.05
3 FEE 3/1/94 0.448 11.661952 0.038415524 0.04
4 3/1/95 0.448 12.036405 0.037220416 0.03
5 3/1/96 0.448 15.55198 0.028806621 0.02
6 3/1/97 0.448 16.64696 0.026911821 0.01
7 12/31/97 0.448 19.849883 0.022569403 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 19.849883 99.77108412 1980.444
6.836413415
FORMULA: 1000*(1+T)= 1980.444347
= 1980.444347
T = 10.51%
R = 98.04%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII PACIFIC GROWTH
2/22/94
TO NO. YEARS 3.854893908
12/31/97 SURRENDER
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 2/22/94 1000 10 100
1 FEE 2/22/95 0.448 8.606719 0.052052356 0.06
2 FEE 2/22/96 0.448 10.351365 0.043279316 0.05
3 FEE 2/22/97 0.448 9.886421 0.04531468 0.04
4 12/31/97 0.448 6.003407 0.074624293 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 6.003407 99.78472936 599.0483
3.854893908
FORMULA: 1000*(1+T)= 599.0483427
= 573.5483427
T = -13.43%
R = -42.65%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII GLOBAL DIVIDEND GROWTH
2/22/94
TO NO. YEARS 3.854893908
12/31/97 SURRENDER
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 2/22/94 1000 10 100
1 FEE 2/22/95 0.448 9.952901 0.045012002 0.06
2 FEE 2/22/96 0.448 12.219025 0.036664136 0.05
3 FEE 2/22/97 0.448 13.792264 0.032481977 0.04
4 12/31/97 0.448 15.162705 0.029546179 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 15.162705 99.85629571 1514.092
3.854893908
FORMULA: 1000*(1+T)= 1514.091554
= 1488.591554
T = 10.87%
R = 48.86%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL APPRECIATION
1/21/97
TO NO. YEARS 0.941820671
12/31/97 SURRENDER
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/21/97 1000 10 100
1 FEE 12/31/97 0.448 11.1517 0.040173247 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 11.1517 99.95982675 1114.722
0.941820671
FORMULA: 1000*(1+T)= 1114.722
= 1063.722
T = 6.78%
R = 6.37%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INCOME BUILDER
1/21/97
TO NO. YEARS 0.941820671
12/31/97 SURRENDER
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/21/97 1000 10 100
1 FEE 12/31/97 0.448 12.056457 0.037158512 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 12.056457 99.96284149 1205.198
0.941820671
FORMULA: 1000*(1+T)= 1205.1977
= 1154.1977
T = 16.45%
R = 15.42%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EQUITY GROWTH
1/2/97
TO NO. YEARS 0.993839836
12/31/97 SURRENDER
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/2/97 1000 10 100
1 FEE 12/31/97 0.448 13.096683 0.034207135 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 13.096683 99.96579287 1309.22
0.993839836
FORMULA: 1000*(1+T)= 1309.2203
= 1258.2203
T = 26.00%
R = 25.82%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII INTERNATIONAL MAGNUM
1/2/97
TO NO. YEARS 0.993839836
12/31/97 SURRENDER
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 1/2/97 1000 10 100
1 FEE 12/31/97 0.448 10.562966 0.04241233 0.06
2 FEE N/A 0 N/A 0 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 10.562966 99.95758767 1055.849
0.993839836
FORMULA: 1000*(1+T)= 1055.8486
= 1004.8486
T = 0.49%
R = 0.48%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING MARKETS
10/1/96
TO NO. YEARS 1.248459959
12/31/97 SURRENDER
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 10/1/96 1000 10 100
1 FEE 10/1/97 0.448 11.910475 0.037613949 0.06
2 FEE 12/31/97 0.448 9.634048 0.04650174 0.05
3 FEE N/A 0 N/A 0 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 9.634048 99.91588431 962.5944
1.248459959
FORMULA: 1000*(1+T)= 962.5944254
= 920.0944254
T = -6.45%
R = -7.99%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EMERGING GROWTH
7/3/95
TO NO. YEARS 2.496919918
12/31/97 SURRENDER
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE CHARGES
<S> <C> <C> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 7/3/95 1000 10 100
1 FEE 7/3/96 0.448 13.513333 0.033152443 0.06
2 FEE 7/3/97 0.448 14.733975 0.030405916 0.05
3 FEE 12/31/97 0.448 15.81009 0.028336335 0.04
4 N/A 0 N/A 0 0.03
5 N/A 0 N/A 0 0.02
6 N/A 0 N/A 0 0.01
7 N/A 0 N/A 0 0
8 N/A 0 N/A 0 0
9 N/A 0 N/A 0 0
10 N/A 0 N/A 0 0
11 N/A 0 N/A 0 0
12 N/A 0 N/A 0 0
13 N/A 0 N/A 0 0
14 FEE N/A 0 N/A 0 0
15 FEE N/A 0 N/A 0 0
RESULTING VALUE 12/31/97 15.81009 99.90810531 1579.556
2.496919918
FORMULA: 1000*(1+T)= 1579.556137
= 1545.556137
T = 19.05%
R = 54.56%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Non-Standardized Calculations
Dates:
<S> <C>
Current: 12/31/97
3 Months Ago: 9/30/97
End of Last Year: 12/31/96
One Yr Ago: 12/31/96
Two Yrs Ago: 12/29/95
Three Yrs Ago: 12/31/94
Five Yrs Ago: 12/31/92
Ten Yrs Ago: 12/31/87
<CAPTION>
Inception Inception Ten Yr Five Yr Three Two One Yr
Fund Date AUV AUV AUV AUV AUV AUV
<S> <C> <C> <C> <C> <C> <C> <C>
Money Market 10/25/90 10N/A 10.708868 11.071838 11.508735 11.905367
High Yield 10/25/90 10N/A 16.250889 19.117027 21.581341 23.783763
Equity 10/25/90 10N/A 16.51307 18.010317 25.545466 28.248188
Quality Income 10/25/90 10N/A 12.925627 13.180086 16.171531 16.162888
Managed Assets 10/25/90 10N/A 13.961977 15.532966 16.710795 18.916699
Dividend Growth 10/25/90 10N/A 14.767228 15.910016 21.240032 25.912299
Utilities 10/25/90 10N/A 13.768616 14.050329 17.777227 19.014042
European Growth 3/1/91 10N/A 10.235625 15.158111 18.757836 23.997344
Capital Growth 3/1/91 10N/A 12.675973 11.220177 14.751346 16.193773
Pacific Growth 2/22/94 10N/A N/A 9.111947 9.576398 9.790881
Global Div Growth 2/22/94 10N/A N/A 9.87493 11.882013 13.750233
Capital Appreciation 1/21/97 10N/A N/A N/A N/A N/A
Income Builder 1/21/97 10N/A N/A N/A N/A N/A
Equity Growth 1/2/97 10N/A N/A N/A N/A N/A
International Magnum 1/2/97 10N/A N/A N/A N/A N/A
Emerging Markets 10/1/96 10N/A N/A N/A N/A 9.75842
Emerging Growth 7/3/95 10N/A N/A N/A 11.619124 13.338966
<PAGE>
Non-Standardized Performance
YTD 3 Months Today's Inception Ten Years Five Years
AUV AUV AUV Total Average Total Average Total
11.905367 12.21947 12.330983 23.31% 2.96%N/A N/A 15.15%
23.783763 25.863387 26.186425 161.86% 14.33%N/A N/A 61.14%
28.248188 38.059534 38.210604 282.11% 20.50%N/A N/A 131.40%
16.162888 17.152736 17.675955 76.76% 8.25%N/A N/A 36.75%
18.916699 21.607779 21.172661 111.73% 11.00%N/A N/A 51.65%
25.912299 32.089856 32.034547 220.35% 17.58%N/A N/A 116.93%
19.014042 21.221738 23.795739 137.96% 12.82%N/A N/A 72.83%
23.997344 28.030582 27.417722 174.18% 15.89%N/A N/A 167.87%
16.193773 21.368018 19.849883 98.50% 10.54%N/A N/A 56.59%
9.790881 8.322457 6.003407 -39.97% -12.39%N/A N/A N/A
13.750233 15.971378 15.162705 51.63% 11.39%N/A N/A N/A
10 12.343895 11.1517 11.52% 12.26%N/A N/A N/A
10 11.755517 12.056457 20.56% 21.95%N/A N/A N/A
10 12.689574 13.096683 30.97% 31.16%N/A N/A N/A
10 11.47381 10.562966 5.63% 5.66%N/A N/A N/A
9.75842 11.881412 9.634048 -3.66% -2.94%N/A N/A N/A
13.338966 16.838627 15.81009 58.10% 20.12%N/A N/A N/A
<PAGE>
<CAPTION>
Three Years Two Years One Year YTD Three Months
Average Total Average Total Average
<S> <C> <C> <C> <C> <C> <C> <C>
2.86% 11.37% 3.66% 7.14% 3.51% 3.57% 3.57% 0.91%
10.01% 36.98% 11.06% 21.34% 10.15% 10.10% 10.10% 1.25%
18.27% 112.16% 28.50% 49.58% 22.30% 35.27% 35.27% 0.40%
6.46% 34.11% 10.28% 9.30% 4.55% 9.36% 9.36% 3.05%
8.68% 36.31% 10.88% 26.70% 12.56% 11.93% 11.93% -2.01%
16.75% 101.35% 26.27% 50.82% 22.81% 23.63% 23.63% -0.17%
11.56% 69.36% 19.20% 33.86% 15.70% 25.15% 25.15% 12.13%
21.78% 80.88% 21.84% 46.17% 20.90% 14.25% 14.25% -2.19%
9.38% 76.91% 20.94% 34.56% 16.00% 22.58% 22.58% -7.10%
N/A -34.11% -12.98% -37.31% -20.82% -38.68% -38.68% -27.86%
N/A 53.55% 15.37% 27.61% 12.96% 10.27% 10.27% -5.06%
N/A N/A N/A N/A N/A N/A 11.52% -9.66%
N/A N/A N/A N/A N/A N/A 20.56% 2.56%
N/A N/A N/A N/A N/A N/A 30.97% 3.21%
N/A N/A N/A N/A N/A N/A 5.63% -7.94%
N/A N/A N/A N/A N/A -1.27% -1.27% -18.91%
N/A N/A N/A 36.07% 16.65% 18.53% 18.53% -6.11%
</TABLE>
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