<PAGE>
FORM N-SAR
SEMI-ANNUAL REPORT
FOR REGISTERED INVESTMENT COMPANIES
Report for six month period ending: // (a)
or fiscal year ending: 12/31/97 (b)
Is this a transition report (Y/N) N
----
Is this an amendment to a previous filing (Y/N) N
----
Those items or sub-items with a box "/ /" after the item number should be
completed only if the answer has changed from the previous filing on this form.
<TABLE>
<CAPTION>
<S> <C>
1. A. Registrant Name: Separate Account VUL-2 of The American Franklin Life Insurance
Company
B. File Number: 811-6366
C. Telephone Number: (217) 528-2011
2. A. Street: #1 Franklin Square
B: City: Springfield C. State: IL D. Zip Code: 62713 Zip Ext: 0001
E. Foreign Country: Foreign Postal Code:
3. Is this the first filing on this form by Registrant? (Y/N) N
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4. Is this the last filing on this form by Registrant? (Y/N) N
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5. Is Registrant a small business investment company (SBIC)? (Y/N) N
------------
[If answer is "Y"(Yes), complete only items 89 through 110.]
6. Is Registrant a unit investment trust (UIT)? (Y/N) Y
-------------------------
[If answer is "Y" (Yes) complete only items 111 through 132.]
</TABLE>
01
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For period ending December 31, 1997
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File number 811-6366
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UNIT INVESTMENT TRUSTS
<TABLE>
<CAPTION>
<S> <C>
111. A. / / Depositor Name:
--------------------------------------------------------
B. / / File Number (If any):
----------------------
C. / / City: State: Zip Code: Zip Ext.:
-------------- ---------- ---------- ------
/ / Foreign Country: Foreign Postal Code:
------------------ ----------------
111. A. / / Depositor Name:
--------------------------------------------------------
B. / / File Number (If any):
-------------------------
C. / / City: State: Zip Code: Zip Ext.
--------------- ---------- --------- ------
/ / Foreign Country: Foreign Postal Code:
----------------- -----------------
112. A. / / Sponsor Name:
----------------------------------------------------------
B. / / File Number (If any):
----------------------
C. / / City: State: Zip Code: Zip Ext.:
--------------- ----------- -------- --------
Foreign Country: Foreign Postal Code:
----------------------- ------------
A. / / Sponsor Name:
----------------------------------------------------------
B. / / File Number (If any)
----------------------------
C. / / City: State: Zip Code: Zip Ext.:
--------------- ----------- ------- -----
/ / Foreign Country: Foreign Postal Code:
----------------- -----------------
</TABLE>
47
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For period ending December 31, 1997
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File number 811-6366
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<TABLE>
<CAPTION>
<S> <C>
113. A. / / Trustee Name:
----------------------------------------------------------
B. / / City: State: Zip Code: Zip Ext.:
-------------- ---------- ---------- ------
/ / Foreign Country: Foreign Postal Code:
------------------ ----------------
113. A. / / Trustee Name:
----------------------------------------------------------
B. / / City: State: Zip Code: Zip Ext.
--------------- ---------- --------- ------
/ / Foreign Country: Foreign Postal Code:
----------------- -----------------
114. A. / / Principal Underwriter Name:
--------------------------------------------
B. / / File Number:8-
----------------------
C. / / City: State: Zip Code: Zip Ext.:
--------------- ----------- -------- --------
/ / Foreign Country: Foreign Postal Code:
----------------------- ------------
114. A. / / Principal Underwriter Name:
--------------------------------------------
B. / / File Number:
----------------------------
C. / / City: State: Zip Code: Zip Ext.:
--------------- ----------- ------- -----
/ / Foreign Country: Foreign Postal Code:
----------------- -----------------
115. A. / / Independent Public Accountant Name:
------------------------------------
B. / / City: State: Zip Code: Zip Ext.:
--------------- ----------- ------- -----
/ / Foreign Country: Foreign Postal Code:
----------------- -----------------
115. A. / / Independent Public Accountant Name:
------------------------------------
B. / / City: State: Zip Code: Zip Ext.:
--------------- ----------- ------- -----
/ / Foreign Country: Foreign Postal Code:
----------------- -----------------
</TABLE>
48
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For period ending December 31, 1997
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File number 811-6366
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<TABLE>
<CAPTION>
116. Family of investment companies information:
<S> <C>
A. / / Is Registrant part of a family of investment companies? (Y/N)
---- ------
Y/N
B. / / Identify the family in 10 letters: _ _ _ _ _ _ _ _ _ _
(NOTE: In filing this form, use this identification consistently for all
investment companies in family. This designation is for purposes of this
form only.)
117. A. / / Is Registrant a separate account of an insurance company? (Y/N)
--- -----
Y/N
If answer is "Y" (Yes), are any of the following types of contracts funded by the Registrant?:
B. / / Variable annuity contracts? (Y/N)
----------------------------- ------
Y/N
C. / / Scheduled premium variable life contracts? (Y/N)
---------- -----------
Y/N
D. / / Flexible premium variable life contracts? (Y/N)
----------- -----------
Y/N
E. / / Other types of insurance products registered under the Securities Act of
1933? (Y/N)
---------- ---------
Y/N
118. / / State the number of series existing at the end of the period that had securities registered
under the Securities Act of 1933
------------------------------------------------ -------
119. / / State the number of new series for which registration statements under the Securities
Act of 1933 became effective during the period
----------------------------------- -------
120. / / State the total value of the portfolio securities on the date of deposit for the
new series included in item 119 ($000's omitted) $
---------------------- ---------
121. / / State the number of series for which a current prospectus was in existence at the
end of the period
------------------------------------------ ---------
122. / / State the number of existing series for which additional units were registered under the
Securities Act of 1933 during the current period
-------------------- ----------
49
<PAGE>
For period ending December 31, 1997
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File number 811-6366
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123. / / State the total value of the additional units considered
in answering item 122 ($000's omitted) $ 67,765
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124. / / State the total value of units of prior series that were
placed in the portfolios of subsequent series during the
current period (the value of these units is to be measured
on the date they were placed in the subsequent series)
($000's omitted) $
----------------------------------------- -------
125. / / State the total dollar amount of sales loads collected
(before reallowances to other brokers or dealers) by
Registrant's principal underwriter and any underwriter
which is an affiliated person of the principal
underwriter during the current period solely from the
sale of units of all series of Registrant
($000's omitted) $
----------------------------------------- -------
126. Of the amount shown in item 125, state the total dollar
amount of sales loads collected from secondary market
operations in Registrant's units (include the sales loads,
if any, collected on units of a prior series placed in the
portfolio of a subsequent series.) ($000's omitted) $
-------- -------
127. List opposite the appropriate description below the number
of series whose portfolios are invested primarily (based
upon a percentage of NAV) in each type of security shown, the
aggregate total assets at market value as of a date at or
near the end of the current period of each such group of
series and the total income distributions made by each such
group of series during the current period (excluding
distributions of realized gains, if any):
</TABLE>
<TABLE>
<CAPTION>
Total Total Income
Number of Assets Distributions
Series ($000's ($000's
Investing omitted) omitted)
----------------------------------------
<S> <C> <C> <C> <C>
A. U.S. Treasury direct issue $ $
-------------------------- ---------- ---------- -----------
B. U.S. Government agency $ $
-------------------------- ---------- ---------- -----------
C. State and municipal tax-free $ $
-------------------------- ---------- ---------- -----------
D. Public utility debt $ $
------------------------------- ---------- ---------- -----------
E. Brokers or dealers debt or debt of brokers' or
dealers' parent $ $
-------------------------------------- ---------- ---------- -----------
F. All other corporate intermed. & long-term debt $ $
-------- ---------- ---------- -----------
G. All other corporate short-term debt $ $
------------------- ---------- ---------- -----------
H. Equity securities of brokers or dealers or parents of
brokers or dealers $ $
------------------------------------- ---------- ---------- ----------
</TABLE>
<PAGE>
For period ending December 31, 1997
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File number 811-5794
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<TABLE>
<CAPTION>
TOTAL TOTAL INCOME
NUMBER OF ASSETS DISTRIBUTIONS
SERIES ($000'S ($000'S
INVESTING OMITTED) OMITTED)
---------------------------------------
<S> <C> <C> <C> <C>
I. Investment company equity securities $ $
------------------ ---------- ---------- -----------
J. All other equity securities 1 $169,395 $7,798
--------------------------- ---------- ---------- -----------
K. Other securities $ $
-------------------------------------- ---------- ---------- -----------
L. Total assets of all series of registrant 1 $169,395 $7,798
-------------- ---------- ---------- -----------
</TABLE>
50
<PAGE>
For period ending December 31, 1997
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File number 811-6366
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<TABLE>
<CAPTION>
<S> <C>
128. / / Is the timely payment of principal and interest on any
of the portfolio securities held by any of Registrant's
series at the end of the current period insured or
guaranteed by an entity other than the issuer?
(Y/N)
-------------------------------------------------- --------
[If answer is "N" (No), go to item 131.] Y/N
129. / / Is the issuer of any instrument covered in item 128
delinquent or in default as to payment of principal
or interest at the end of the current period?
(Y/N)
-------------------------------------------------- --------
[If answer is "N" (No), go to item 131.] Y/N
130. / / In computations of NAV or offering price per unit, is
any part of the value attributed to instruments identified
in item 129 derived from insurance or guarantees?
(Y/N)
-------------------------------------------------- --------
Y/N
131. / / Total expenses incurred by all series of Registrant during
the current reporting period ($000's omitted) $997
--------- --------
132. / / List the "811" (Investment Company Act of 1940) registration
number for all Series of Registrant that are being included
in this filing:
811-
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</TABLE>
51
<PAGE>
For period ending 12/31/97
File number 811-6366
This report is signed on behalf of the Registrant, Separate Account VUL-2 of The
American Franklin Life Insurance Company, in the City of Springfield and State
of Illinois on this 23rd day of February, 1998.
SEPARATE ACCOUNT VUL-2 OF THE
AMERICAN FRANKLIN LIFE INSURANCE
COMPANY
BY: THE AMERICAN FRANKLIN LIFE
INSURANCE COMPANY, DEPOSITOR
By: /s/ William A. Simpson
-------------------------------
William A. Simpson
Chairman and President
Witness /s/ Elizabeth E. Arthur
------------------------------
Elizabeth E. Arthur
Assistant Secretary
PAGE NUMBER 52
