<PAGE> 1
- --------------------------------------------------------------------------------
To Our Variable Annuity Contractholders:
- --------------------------------------------------------------------------------
August 22, 1997
We are pleased to send you the attached semi-annual report detailing separate
account information pertaining to our variable annuity contracts. In addition,
the semi-annual report for the Market Street Fund, Inc. is attached.
As the owner of a variable annuity contract, you allocate your premiums to
various investments of your choosing. If applicable, you'll be receiving, under
separate cover, additional semi-annual reports pertaining to the Funds you've
selected within your variable annuity contract offered through Providentmutual
Life and Annuity Company of America.
Your variable annuity is unique in that it allows you to invest in a variety of
subaccounts and receive many of the advantages of mutual funds, but defer taxes
while your money accumulates. Portfolios within the variable annuities are
managed by some of the best Fund Management Companies in the country.
Our parent company, Provident Mutual Life Insurance Company, is a leader in the
variable products marketplace offering a wide variety of annuity contracts and
life insurance policies designed to help you meet your financial planning goals,
including retirement planning, college funding, and estate planning.
By selecting Providentmutual Life and Annuity Company of America, you have
chosen a company with a reputation for strength, stability, and sound
management. The roots of our parent company, Provident Mutual Life Insurance
Company, can be traced back to 1717, giving us the distinction of serving
America's life insurance needs longer than any other company.
We appreciate your business. If you have questions about your contract, or would
like more information about our products and services, please contact your local
agent or our Service Center at 1-800-688-5177.
Sincerely,
/S/ Robert W. Kloss
Robert W. Kloss
President
<PAGE> 2
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Assets and Liabilities, June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY AGGRESSIVE
GROWTH MARKET BOND MANAGED GROWTH INTERNATIONAL
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investment in the Market Street
Fund, Inc., at market value:
Growth Portfolio................. $33,919,805
Money Market Portfolio........... $28,447,208
Bond Portfolio................... $6,104,301
Managed Portfolio................ $13,667,806
Aggressive Growth Portfolio...... $9,661,581
International Portfolio.......... $19,420,400
Dividends receivable............... 120,881
Receivable from Providentmutual
Life and Annuity Company of
America.......................... 1,314,980
----------- ----------- ---------- ----------- ---------- -----------
Total Assets....................... 33,919,805 29,883,069 6,104,301 13,667,806 9,661,581 19,420,400
----------- ----------- ---------- ----------- ---------- -----------
LIABILITIES
Payable to Providentmutual Life and
Annuity Company of America....... 103,798 77,846 81,913
----------- ----------- ---------- ----------- ---------- -----------
NET ASSETS......................... $33,816,007 $29,883,069 $6,026,455 $13,667,806 $9,661,581 $19,338,487
=========== =========== ========== =========== ========== ===========
Held for the benefit of
contractholders.................. $33,756,035 $29,825,390 $5,991,940 $13,638,471 $9,602,677 $19,294,553
Attributable to Providentmutual
Life and Annuity Company of
America.......................... 59,972 57,679 34,515 29,335 58,904 43,934
----------- ----------- ---------- ----------- ---------- -----------
$33,816,007 $29,883,069 $6,026,455 $13,667,806 $9,661,581 $19,338,487
=========== =========== ========== =========== ========== ===========
</TABLE>
See accompanying notes to financial statements
2
<PAGE> 3
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Assets and Liabilities, June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIDELITY FIDELITY FIDELITY
HIGH EQUITY- FIDELITY FIDELITY ASSET FIDELITY
INCOME INCOME GROWTH OVERSEAS MANAGER INDEX 500
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investment in the Variable
Insurance Products Fund, at
market value:
High Income Portfolio............ $13,625,443
Equity-Income Portfolio.......... $64,567,124
Growth Portfolio................. $55,353,912
Overseas Portfolio............... $1,193,196
Investment in the Variable
Insurance Products Fund II, at
market value:
Asset Manager Portfolio.......... $25,636,210
Index 500 Portfolio.............. $40,621,611
----------- ----------- ----------- ---------- ----------- -----------
NET ASSETS......................... $13,625,443 $64,567,124 $55,353,912 $1,193,196 $25,636,210 $40,621,611
=========== =========== =========== ========== =========== ===========
Held for the benefit of
contractholders.................. $13,596,240 $64,513,862 $55,290,849 $1,163,199 $25,583,988 $40,569,844
Attributable to Providentmutual
Life and Annuity Company of
America.......................... 29,203 53,262 63,063 29,997 52,222 51,767
----------- ----------- ----------- ---------- ----------- -----------
$13,625,443 $64,567,124 $55,353,912 $1,193,196 $25,636,210 $40,621,611
=========== =========== =========== ========== =========== ===========
</TABLE>
See accompanying notes to financial statements
3
<PAGE> 4
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Assets and Liabilities, June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIDELITY
FIDELITY INVESTMENT OCC OCC OCC
CONTRAFUND GRADE BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investment in the Variable Insurance Products
Fund II, at market value:
Contrafund Portfolio.......................... $27,371,130
Investment Grade Bond......................... $489,722
Investment in the OCC Accumulation Trust, at
market value:
Equity Portfolio.............................. $14,755,735
Small Cap Portfolio........................... $14,541,377
Managed Portfolio............................. $50,049,560
----------- -------- ----------- ----------- -----------
NET ASSETS...................................... $27,371,130 $489,722 $14,755,735 $14,541,377 $50,049,560
=========== ======== =========== =========== ===========
Held for the benefit of contractholders......... $27,330,361 $464,359 $14,708,624 $14,496,441 $49,992,773
Attributable to Providentmutual Life and Annuity
Company of America............................ 40,769 25,363 47,111 44,936 56,787
----------- -------- ----------- ----------- -----------
$27,371,130 $489,722 $14,755,735 $14,541,377 $50,049,560
=========== ======== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements
4
<PAGE> 5
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Assets and Liabilities, June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SCUDDER DREYFUS DREYFUS DREYFUS
SCUDDER GROWTH SCUDDER ZERO GROWTH SOCIALLY
BOND AND INCOME INTERNATIONAL COUPON 2000 AND INCOME RESPONSIBLE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investment in the Scudder
Variable Life Investment Fund,
at market value:
Bond Portfolio................. $6,047,269
Growth and Income Portfolio.... $9,230,064
International Portfolio........ $ 8,965,904
Investment in the Dreyfus
Variable Investment Fund, at
market value:
Zero Coupon 2000 Portfolio..... $4,753,059
Growth and Income Portfolio.... $16,089,741
Socially Responsible
Portfolio.................... $3,502,386
---------- ---------- ---------- ---------- ----------- ----------
NET ASSETS....................... $6,047,269 $9,230,064 $ 8,965,904 $4,753,059 $16,089,741 $3,502,386
========== ========== ========== ========== =========== ==========
Held for the benefit of
contractholders................ $6,019,655 $9,186,297 $ 8,930,941 $4,726,292 $16,048,713 $3,459,872
Attributable to Providentmutual
Life and Annuity Company of
America........................ 27,614 43,767 34,963 26,767 41,028 42,514
---------- ---------- ---------- ---------- ----------- ----------
$6,047,269 $9,230,064 $ 8,965,904 $4,753,059 $16,089,741 $3,502,386
========== ========== ========== ========== =========== ==========
</TABLE>
See accompanying notes to financial statements
5
<PAGE> 6
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Assets and Liabilities, June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FEDERATED
FUND FOR NEUBERGER NEUBERGER NEUBERGER
U.S. GOVERNMENT FEDERATED & BERMAN & BERMAN & BERMAN LIMITED
SECURITIES II UTILITY FUND II BALANCED GROWTH MATURITY BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investment in the Federated
Insurance Series, at market value:
Fund for U.S. Government
Securities II Portfolio......... $ 2,323,596
Utility Fund II Portfolio......... $ 3,538,392
Investment in the Neuberger & Berman
Advisers Management Trust, at
market value:
Balanced Portfolio................ $280,244
Growth Portfolio.................. $498,906
Limited Maturity Bond Portfolio... $538,068
---------- ---------- -------- -------- --------
NET ASSETS.......................... $ 2,323,596 $ 3,538,392 $280,244 $498,906 $538,068
========== ========== ======== ======== ========
Held for the benefit of
contractholders................... $ 2,293,941 $ 3,503,208 $251,088 $468,266 $511,122
Attributable to Providentmutual Life
and Annuity Company of America.... 29,655 35,184 29,156 30,640 26,946
---------- ---------- -------- -------- --------
$ 2,323,596 $ 3,538,392 $280,244 $498,906 $538,068
========== ========== ======== ======== ========
</TABLE>
See accompanying notes to financial statements
6
<PAGE> 7
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Assets and Liabilities, June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMERICAN VAN ECK
CENTURY VP VAN ECK VAN ECK WORLDWIDE ALGER AMERICAN
CAPITAL WORLDWIDE WORLDWIDE EMERGING SMALL
APPRECIATION BOND HARD ASSETS MARKETS CAPITALIZATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investment in American Century Variable
Portfolios Inc., at market value:
American Century VP Capital Appreciation
Portfolio.............................. $132,039
Investment in Van Eck Worldwide Insurance
Trust, at market value:
Van Eck Worldwide Bond Portfolio......... $582,625
Van Eck Worldwide Hard Assets
Portfolio.............................. $93,472
Van Eck Worldwide Emerging Markets
Portfolio.............................. $668,560
Investment in the Alger American Fund, at
market value:
Alger American Small Capitalization
Portfolio.............................. $1,232,859
-------- -------- -------- -------- ----------
NET ASSETS................................. $132,039 $582,625 $93,472 $668,560 $1,232,859
======== ======== ======== ======== ==========
Held for the benefit of contractholders.... $108,684 $556,395 $67,230 $636,136 $1,208,138
Attributable to Providentmutual Life and
Annuity Company of America............... 23,355 26,230 26,242 32,424 24,721
-------- -------- -------- -------- ----------
$132,039 $582,625 $93,472 $668,560 $1,232,859
======== ======== ======== ======== ==========
</TABLE>
See accompanying notes to financial statements
7
<PAGE> 8
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Operations for the Six Months Ended June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY AGGRESSIVE
GROWTH MARKET BOND MANAGED GROWTH INTERNATIONAL
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends.......................... $ 319,391 $676,995 $166,201 $ 208,791 $ 69,133 $ 137,769
EXPENSES
Mortality and expense risks........ 200,276 184,259 37,004 84,050 56,591 118,545
---------- -------- -------- ---------- ---------- ----------
Net investment income.............. 119,115 492,736 129,197 124,741 12,542 19,224
---------- -------- -------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Realized gain distributions
reinvested....................... 3,151,879 91,718 13,711
Net realized gain (loss) from
redemption of investment
shares........................... 66,412 (7,922) 142,596 104,169 1,125,123
---------- -------- -------- ---------- ---------- ----------
Net realized gain (loss) on
investments...................... 3,218,291 (7,922) 234,314 117,880 1,125,123
---------- -------- -------- ---------- ---------- ----------
Net unrealized appreciation
(depreciation) of investments:
Beginning of period.............. 4,997,236 86,993 1,316,337 945,250 1,575,419
End of period.................... 5,277,210 70,585 2,242,846 1,742,022 2,653,812
---------- -------- -------- ---------- ---------- ----------
Net unrealized appreciation
(depreciation) during the
period........................... 279,974 (16,408) 926,509 796,772 1,078,393
---------- -------- -------- ---------- ---------- ----------
Net realized and unrealized gain
(loss) on investments............ 3,498,265 (24,330) 1,160,823 914,652 2,203,516
---------- -------- -------- ---------- ---------- ----------
Net increase in net assets
resulting from operations........ $3,617,380 $492,736 $104,867 $1,285,564 $ 927,194 $ 2,222,740
========== ======== ======== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements
8
<PAGE> 9
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Operations for the Six Months Ended June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIDELITY FIDELITY FIDELITY
HIGH EQUITY- FIDELITY FIDELITY ASSET FIDELITY
INCOME INCOME GROWTH OVERSEAS MANAGER INDEX 500
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends.......................... $773,832 $ 862,294 $ 310,714 $ 3,965 $ 748,757 $ 291,382
EXPENSES
Mortality and expense risks........ 81,754 380,203 337,469 3,147 159,061 213,120
-------- ----------- ----------- ------- ---------- ----------
Net investment income (loss)....... 692,078 482,091 (26,755) 818 589,696 78,262
-------- ----------- ----------- ------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Realized gain distributions
reinvested....................... 95,642 4,335,423 1,390,816 15,739 1,878,238 591,251
Net realized gain from redemption
of investment shares............. 63,713 327,083 420,376 4,055 110,527 58,447
-------- ----------- ----------- ------- ---------- ----------
Net realized gain on investments... 159,355 4,662,506 1,811,192 19,794 1,988,765 649,698
-------- ----------- ----------- ------- ---------- ----------
Net unrealized appreciation
(depreciation) of investments:
Beginning of period.............. 788,054 7,714,797 6,606,438 6,677 2,991,814 3,722,079
End of period.................... 760,697 10,800,304 11,041,476 82,700 2,753,869 8,682,599
-------- ----------- ----------- ------- ---------- ----------
Net unrealized appreciation
(depreciation) during the
period........................... (27,357) 3,085,507 4,435,038 76,023 (237,945) 4,960,520
-------- ----------- ----------- ------- ---------- ----------
Net realized and unrealized gain on
investments...................... 131,998 7,748,013 6,246,230 95,817 1,750,820 5,610,218
-------- ----------- ----------- ------- ---------- ----------
Net increase in net assets
resulting from operations........ $824,076 $8,230,104 $6,219,475 $ 96,635 $2,340,516 $5,688,480
======== =========== =========== ======= ========== ==========
</TABLE>
See accompanying notes to financial statements
9
<PAGE> 10
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Operations for the Six Months Ended June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIDELITY
FIDELITY INVESTMENT OCC OCC OCC
CONTRAFUND GRADE BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends...................................... $ 153,755 $ 14,240 $ 103,937 $ 66,503 $ 440,814
EXPENSES
Mortality and expense risks.................... 147,988 2,227 84,550 84,570 299,501
---------- ------- ---------- ---------- -----------
Net investment gain (loss)..................... 5,767 12,013 19,387 (18,067) 141,313
---------- ------- ---------- ---------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Realized gain distributions reinvested......... 406,354 370,000 468,993 1,353,882
Net realized gain from redemption of investment
shares....................................... 74,262 679 178,830 104,607 432,644
---------- ------- ---------- ---------- -----------
Net realized gain on investments............... 480,616 679 548,830 573,600 1,786,526
---------- ------- ---------- ---------- -----------
Net unrealized appreciation (depreciation) of
investments:
Beginning of period.......................... 2,216,487 4,399 2,228,445 1,970,184 9,403,779
End of period................................ 4,208,951 1,588 3,231,146 3,135,948 12,957,207
---------- ------- ---------- ---------- -----------
Net unrealized appreciation (depreciation)
during the period............................ 1,992,464 (2,811) 1,002,701 1,165,764 3,553,428
---------- ------- ---------- ---------- -----------
Net realized and unrealized gain (loss) on
investments.................................. 2,473,080 (2,132) 1,551,531 1,739,364 5,339,954
---------- ------- ---------- ---------- -----------
Net increase in net assets resulting from
operations................................... $2,478,847 $ 9,881 $1,570,918 $1,721,297 $5,481,267
========== ======= ========== ========== ===========
</TABLE>
See accompanying notes to financial statements
10
<PAGE> 11
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Operations for the Six Months Ended June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SCUDDER DREYFUS DREYFUS
SCUDDER GROWTH AND SCUDDER DREYFUS ZERO GROWTH SOCIALLY
BOND INCOME INTERNATIONAL COUPON 2000 AND INCOME RESPONSIBLE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends............................ $189,845 $ 79,383 $ 100,838 $ 111,081 $ 129,599
EXPENSES
Mortality and expense risks.......... 40,145 45,163 48,727 32,772 98,726 $ 17,131
-------- ---------- ---------- -------- ---------- --------
Net investment income (loss)......... 149,700 34,220 52,111 78,309 30,873 (17,131)
-------- ---------- ---------- -------- ---------- --------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Realized gain distributions
reinvested......................... 17,188 213,481 52,820 147,057
Net realized gain from redemption of
investment shares.................. 1,154 45,868 37,328 31,398 83,888 12,745
-------- ---------- ---------- -------- ---------- --------
Net realized gain on investments..... 18,342 259,349 90,148 31,398 230,945 12,745
-------- ---------- ---------- -------- ---------- --------
Net unrealized appreciation
(depreciation) of investments:
Beginning of period................ 31,472 449,079 382,202 11,496 (407,725) 65,790
End of period...................... 2,547 1,310,639 1,230,045 (36,105) 502,802 460,717
-------- ---------- ---------- -------- ---------- --------
Net unrealized appreciation
(depreciation) during the period... (28,925) 861,560 847,843 (47,601) 910,527 394,927
-------- ---------- ---------- -------- ---------- --------
Net realized and unrealized gain
(loss) on investments.............. (10,583) 1,120,909 937,991 (16,203) 1,141,472 407,672
-------- ---------- ---------- -------- ---------- --------
Net increase in net assets resulting
from operations.................... $139,117 $1,155,129 $ 990,102 $ 62,106 $1,172,345 $ 390,541
======== ========== ========== ======== ========== ========
</TABLE>
See accompanying notes to financial statements
11
<PAGE> 12
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Operations for the Six Months Ended June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FEDERATED
FUND FOR NEUBERGER NEUBERGER NEUBERGER
U.S. GOVERNMENT FEDERATED & BERMAN & BERMAN & BERMAN LIMITED
SECURITIES II UTILITY FUND II BALANCED GROWTH MATURITY BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends........................... $61,290 $ 55,474 $ 1,790 $ 15,192
EXPENSES
Mortality and expense risks......... 14,550 21,454 1,023 $ 2,087 1,878
------- -------- ------- ------- -------
Net investment income (loss)........ 46,740 34,020 767 (2,087) 13,314
------- -------- ------- ------- -------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Realized gain distributions
reinvested........................ 65,766 4,594 22,229
Net realized gain (loss) from
redemption of investment shares... (1,885) 22,810 1,353 1,031 300
------- -------- ------- ------- -------
Net realized gain (loss) on
investments....................... (1,885) 88,576 5,947 23,260 300
------- -------- ------- ------- -------
Net unrealized appreciation
(depreciation) of investments:
Beginning of period............... 6,635 190,839 1,338 7,212 463
End of period..................... 11,696 327,142 12,893 35,479 (5,693)
------- -------- ------- ------- -------
Net unrealized appreciation
(depreciation) during the
period............................ 5,061 136,303 11,555 28,267 (6,156)
------- -------- ------- ------- -------
Net realized and unrealized gain
(loss) on investments............. 3,176 224,879 17,502 51,527 (5,856)
------- -------- ------- ------- -------
Net increase in net assets resulting
from operations................... $49,916 $ 258,899 $ 18,269 $ 49,440 $ 7,458
======= ======== ======= ======= =======
</TABLE>
See accompanying notes to financial statements
12
<PAGE> 13
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Operations for the Six Months Ended June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMERICAN VAN ECK
CENTURY VP VAN ECK VAN ECK WORLDWIDE ALGER AMERICAN
CAPITAL WORLDWIDE WORLDWIDE EMERGING SMALL
APPRECIATION BOND HARD ASSETS MARKETS CAPITALIZATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends...................................... $ 4,941 $ 1,157 $ 511
EXPENSES
Mortality and expense risks.................... $ 610 1,773 278 1,775 $ 5,549
------- ------- ------- ------- -------
Net investment gain (loss)..................... (610) 3,168 879 (1,264) (5,549)
------- ------- ------- ------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Realized gain distributions reinvested......... 2,357 854 42,209
Net realized gain (loss) from redemption of
investment shares............................ (2,415) (72) (24) 1,984 (2,159)
------- ------- ------- ------- -------
Net realized gain (loss) on investments........ (58) (72) 830 1,984 40,050
------- ------- ------- ------- -------
Net unrealized appreciation (depreciation) of
investments:
Beginning of period.......................... (1,957) 1,185 1,566 3,026 5,653
End of period................................ (4,533) (142) 406 66,315 10,659
------- ------- ------- ------- -------
Net unrealized appreciation (depreciation)
during the period............................ (2,576) (1,327) (1,160) 63,289 5,006
------- ------- ------- ------- -------
Net realized and unrealized gain (loss) on
investments.................................. (2,634) (1,399) (330) 65,273 45,056
------- ------- ------- ------- -------
Net increase (decrease) in net assets resulting
from operations.............................. $ (3,244) $ 1,769 $ 549 $64,009 $ 39,507
======= ======= ======= ======= =======
</TABLE>
See accompanying notes to financial statements
13
<PAGE> 14
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Changes in Net Assets for the Six Months Ended June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY AGGRESSIVE
GROWTH MARKET BOND MANAGED GROWTH INTERNATIONAL
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income............ $ 119,115 $ 492,736 $ 129,197 $ 124,741 $ 12,542 $ 19,224
Net realized gain (loss) on
investments.................... 3,218,291 (7,922) 234,314 117,880 1,125,123
Net unrealized appreciation
(depreciation) of investments
during the period.............. 279,974 (16,408) 926,509 796,772 1,078,393
----------- ------------ ---------- ----------- ---------- -----------
Net increase in net assets from
operations..................... 3,617,380 492,736 104,867 1,285,564 927,194 2,222,740
----------- ------------ ---------- ----------- ---------- -----------
FROM VARIABLE ANNUITY CONTRACT
TRANSACTIONS
Contractholders' net premiums.... 1,056,663 62,028,835 166,924 511,862 426,163 708,425
Administrative charges........... (8,114) (4,075) (1,491) (3,463) (2,938) (6,584)
Surrenders and forfeitures....... (613,490) (1,605,200) (177,900) (526,441) (276,633) (454,198)
Transfers between investment
portfolios..................... 2,617,138 (57,261,679) 739,963 844,463 1,410,719 472,387
Net repayments (withdrawals) due
to policy loans................ 210 3,414 52 (46) (1,328)
Withdrawals due to death
benefits....................... (41,000) (14,135) (35,253) (2,563) (41,025) (23,346)
----------- ------------ ---------- ----------- ---------- -----------
Net increase in net assets
derived from contract
transactions................... 3,011,407 3,147,160 692,295 823,858 1,516,240 695,356
----------- ------------ ---------- ----------- ---------- -----------
Total increase in net assets..... 6,628,787 3,639,896 797,162 2,109,422 2,443,434 2,918,096
NET ASSETS
Beginning of period............ 27,187,220 26,243,173 5,229,293 11,558,384 7,218,147 16,420,391
----------- ------------ ---------- ----------- ---------- -----------
End of period.................. $33,816,007 $ 29,883,069 $6,026,455 $13,667,806 $9,661,581 $19,338,487
=========== ============ ========== =========== ========== ===========
</TABLE>
See accompanying notes to financial statements
14
<PAGE> 15
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Changes in Net Assets for the Six Months Ended June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIDELITY FIDELITY FIDELITY
HIGH EQUITY- FIDELITY FIDELITY ASSET FIDELITY
INCOME INCOME GROWTH OVERSEAS MANAGER INDEX 500
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss)....... $ 692,078 $ 482,091 $ (26,755) $ 818 $ 589,696 $ 78,262
Net realized gain on investments... 159,355 4,662,506 1,811,192 19,794 1,988,765 649,698
Net unrealized appreciation
(depreciation) of investments
during the period................ (27,357) 3,085,507 4,435,038 76,023 (237,945) 4,960,520
----------- ----------- ----------- ---------- ----------- -----------
Net increase in net assets from
operations....................... 824,076 8,230,104 6,219,475 96,635 2,340,516 5,688,480
----------- ----------- ----------- ---------- ----------- -----------
FROM VARIABLE ANNUITY CONTRACT
TRANSACTIONS
Contractholders' net premiums...... 349,515 1,992,907 2,266,771 59,938 827,120 2,034,201
Administrative charges............. (4,043) (18,906) (20,015) (101) (8,509) (8,741)
Surrenders and forfeitures......... (277,360) (934,941) (842,484) (2,274) (575,552) (316,307)
Transfers between investment
portfolios....................... 2,302,159 5,740,777 2,715,623 880,023 1,930,519 9,978,401
Net withdrawals due to policy
loans............................ (35,442) (19,365) (6,071) (207) (135)
Withdrawals due to death
benefits......................... (11,184) (159,190) (113) (114) (25,799)
----------- ----------- ----------- ---------- ----------- -----------
Net increase in net assets derived
from contract transactions....... 2,323,645 6,601,282 4,113,711 937,472 2,173,371 11,661,620
----------- ----------- ----------- ---------- ----------- -----------
Total increase in net assets....... 3,147,721 14,831,386 10,333,186 1,034,107 4,513,887 17,350,100
NET ASSETS
Beginning of period.............. 10,477,722 49,735,738 45,020,726 159,089 21,122,323 23,271,511
----------- ----------- ----------- ---------- ----------- -----------
End of period.................... $13,625,443 $64,567,124 $55,353,912 $1,193,196 $25,636,210 $40,621,611
=========== =========== =========== ========== =========== ===========
</TABLE>
See accompanying notes to financial statements
15
<PAGE> 16
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Changes in Net Assets for the Six Months Ended June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIDELITY
FIDELITY INVESTMENT OCC OCC OCC
CONTRAFUND GRADE BOND EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss).................... $ 5,767 $ 12,013 $ 19,387 $ (18,067) $ 141,313
Net realized gain on investments................ 480,616 679 548,830 573,600 1,786,526
Net unrealized appreciation (depreciation) of
investments during the period................. 1,992,464 (2,811) 1,002,701 1,165,764 3,553,428
----------- -------- ----------- ----------- -----------
Net increase in net assets from operations...... 2,478,847 9,881 1,570,918 1,721,297 5,481,267
----------- -------- ----------- ----------- -----------
FROM VARIABLE ANNUITY CONTRACT TRANSACTIONS
Contractholders' net premiums................... 1,352,850 18,811 611,283 653,094 1,902,118
Administrative charges.......................... (7,630) (1) (3,669) (4,914) (12,524)
Surrenders and forfeitures...................... (415,944) (242) (408,571) (208,437) (863,918)
Transfers between investment portfolios......... 6,827,266 290,569 2,163,779 1,604,379 5,304,439
Net withdrawals due to policy loans............. (194) (890) (13,261)
Withdrawals due to death benefits............... (1,352) (70,185)
----------- -------- ----------- ----------- -----------
Net increase in net assets derived from contract
transactions.................................. 7,756,348 309,137 2,362,822 2,041,880 6,246,669
----------- -------- ----------- ----------- -----------
Total increase in net assets.................... 10,235,195 319,018 3,933,740 3,763,177 11,727,936
NET ASSETS
Beginning of period........................... 17,135,935 170,704 10,821,995 10,778,200 38,321,624
----------- -------- ----------- ----------- -----------
End of period................................. $27,371,130 $489,722 $14,755,735 $14,541,377 $50,049,560
=========== ======== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements
16
<PAGE> 17
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Changes in Net Assets for the Six Months Ended June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SCUDDER DREYFUS DREYFUS
SCUDDER GROWTH AND SCUDDER DREYFUS ZERO GROWTH SOCIALLY
BOND INCOME INTERNATIONAL COUPON 2000 AND INCOME RESPONSIBLE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss)........ $ 149,700 $ 34,220 $ 52,111 $ 78,309 $ 30,873 $ (17,131)
Net realized gain on investments.... 18,342 259,349 90,148 31,398 230,945 12,745
Net unrealized appreciation
(depreciation) of investments
during the period................. (28,925) 861,560 847,843 (47,601) 910,527 394,927
---------- ---------- ---------- ---------- ----------- ----------
Net increase in net assets from
operations........................ 139,117 1,155,129 990,102 62,106 1,172,345 390,541
---------- ---------- ---------- ---------- ----------- ----------
FROM VARIABLE ANNUITY CONTRACT
TRANSACTIONS
Contractholders' net premiums....... 194,252 494,060 431,410 127,437 913,515 267,943
Administrative charges.............. (2,172) (1,790) (2,016) (1,319) (5,115) (895)
Surrenders and forfeitures.......... (22,763) (62,098) (15,159) (372,465) (236,655) (36,819)
Transfers between investment
portfolios........................ 60,148 3,102,101 1,973,917 (37,747) 1,718,760 1,102,444
Net withdrawals due to policy
loans............................. (82) (781) (55) (53) (611) (173)
Withdrawals due to death benefits... (10,551) (1,595) (731) (2,723) (10,230) (1,793)
---------- ---------- ---------- ---------- ----------- ----------
Net increase (decrease) in net
assets derived from contract
transactions...................... 218,832 3,529,897 2,387,366 (286,870) 2,379,664 1,330,707
---------- ---------- ---------- ---------- ----------- ----------
Total increase (decrease) in net
assets............................ 357,949 4,685,026 3,377,468 (224,764) 3,552,009 1,721,248
NET ASSETS
Beginning of period............... 5,689,320 4,545,038 5,588,436 4,977,823 12,537,732 1,781,138
---------- ---------- ---------- ---------- ----------- ----------
End of period..................... $6,047,269 $9,230,064 $ 8,965,904 $ 4,753,059 $16,089,741 $3,502,386
========== ========== ========== ========== =========== ==========
</TABLE>
See accompanying notes to financial statements
17
<PAGE> 18
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Changes in Net Assets for the Six Months Ended June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FEDERATED NEUBERGER
FUND FOR NEUBERGER NEUBERGER & BERMAN
U.S. GOVERNMENT FEDERATED & BERMAN & BERMAN LIMITED
SECURITIES II UTILITY FUND II BALANCED GROWTH MATURITY BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss)................ $ 46,740 $ 34,020 $ 767 $ (2,087) $ 13,314
Net realized gain (loss) on investments..... (1,885) 88,576 5,947 23,260 300
Net unrealized appreciation (depreciation)
of investments during the period.......... 5,061 136,303 11,555 28,267 (6,156)
---------- ---------- -------- -------- --------
Net increase in net assets from
operations................................ 49,916 258,899 18,269 49,440 7,458
---------- ---------- -------- -------- --------
FROM VARIABLE ANNUITY CONTRACT TRANSACTIONS
Contractholders' net premiums............... 59,372 147,570 4,825 25,460 12,691
Administrative charges...................... (473) (824) (2)
Surrenders and forfeitures.................. (13,542) (47,927) (323) 160
Transfers between investment portfolios..... 247,039 402,422 189,288 290,623 416,467
Withdrawals due to death benefits........... (1,418) (1,499)
---------- ---------- -------- -------- --------
Net increase in net assets derived from
contract transactions..................... 290,978 499,742 193,788 316,243 429,158
---------- ---------- -------- -------- --------
Total increase in net assets................ 340,894 758,641 212,057 365,683 436,616
NET ASSETS
Beginning of period....................... 1,982,702 2,779,751 68,187 133,223 101,452
---------- ---------- -------- -------- --------
End of period............................. $ 2,323,596 $ 3,538,392 $280,244 $498,906 $ 538,068
========== ========== ======== ======== ========
</TABLE>
See accompanying notes to financial statements
18
<PAGE> 19
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Changes in Net Assets for the Six Months Ended June 30, 1997
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMERICAN VAN ECK
CENTURY VP VAN ECK VAN ECK WORLDWIDE ALGER AMERICAN
CAPITAL WORLDWIDE WORLDWIDE EMERGING SMALL
APPRECIATION BOND HARD ASSETS MARKETS CAPITALIZATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment gain (loss)................. $ (610) $ 3,168 $ 879 $ (1,264) $ (5,549)
Net realized gain (loss) on investments.... (58) (72) 830 1,984 40,050
Net unrealized appreciation (depreciation)
of investments during the period......... (2,576) (1,327) (1,160) 63,289 5,006
-------- -------- ------- -------- ----------
Net increase (decrease) in net assets from
operations............................... (3,244) 1,769 549 64,009 39,507
-------- -------- ------- -------- ----------
FROM VARIABLE ANNUITY CONTRACT TRANSACTIONS
Contractholders' net premiums.............. 8,205 26,846 5,031 18,403 61,250
Surrenders and forfeitures................. (984) (20) (6)
Transfers between investment portfolios.... 44,460 437,491 45,167 489,596 650,252
-------- -------- ------- -------- ----------
Net increase in net assets derived from
contract transactions.................... 52,665 463,353 50,198 507,979 711,496
-------- -------- ------- -------- ----------
Total increase in net assets............... 49,421 465,122 50,747 571,988 751,003
NET ASSETS
Beginning of period...................... 82,618 117,503 42,725 96,572 481,856
-------- -------- ------- -------- ----------
End of period............................ $132,039 $582,625 $93,472 $668,560 $1,232,859
======== ======== ======= ======== ==========
</TABLE>
See accompanying notes to financial statements
19
<PAGE> 20
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Changes in Net Assets for the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY AGGRESSIVE
GROWTH MARKET BOND MANAGED GROWTH INTERNATIONAL
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income
(loss)...................... $ 316,085 $ 784,204 $ 184,491 $ 217,888 $ (33,086) $ (55,547)
Net realized gain (loss) on
investments................. 1,067,017 (25,492) 421,760 495,730 648,114
Net unrealized appreciation
(depreciation) of
investments during the
year........................ 2,484,529 (64,812) 390,458 540,916 694,991
----------- ------------- ---------- ----------- ---------- -----------
Net increase in net assets
from operations............. 3,867,631 784,204 94,187 1,030,106 1,003,560 1,287,558
----------- ------------- ---------- ----------- ---------- -----------
FROM VARIABLE ANNUITY CONTRACT
TRANSACTIONS
Contractholders' net
premiums.................... 1,644,231 121,758,353 304,881 978,648 588,324 1,004,617
Administrative charges........ (13,376) (5,026) (2,343) (6,006) (4,280) (9,958)
Surrenders and forfeitures.... (795,658) (1,435,990) (182,432) (719,819) (273,147) (652,687)
Transfers between investment
portfolios.................. 4,176,554 (111,307,382) 1,372,798 1,582,506 1,796,643 3,132,226
Net repayments (withdrawals)
due to policy loans......... (7,338) (34,207) 100 (552) (1,372)
Withdrawals due to death
benefits.................... (11,907) (58,579) (10,224) (3,236) (17,636) (29,540)
----------- ------------- ---------- ----------- ---------- -----------
Net increase in net assets
derived from contract
transactions................ 4,992,506 8,917,169 1,482,780 1,832,093 2,089,352 3,443,286
----------- ------------- ---------- ----------- ---------- -----------
Capital Contribution from
Providentmutual Life and
Annuity Company of
America..................... 10,000
----------- ------------- ---------- ----------- ---------- -----------
Total increase in net
assets...................... 8,870,137 9,701,373 1,576,967 2,862,199 3,092,912 4,730,844
NET ASSETS
Beginning of year........... 18,317,083 16,541,800 3,652,326 8,696,185 4,125,235 11,689,547
----------- ------------- ---------- ----------- ---------- -----------
End of year................. $27,187,220 $ 26,243,173 $5,229,293 $11,558,384 $7,218,147 $16,420,391
=========== ============= ========== =========== ========== ===========
</TABLE>
See accompanying notes to financial statements
20
<PAGE> 21
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Changes in Net Assets for the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIDELITY FIDELITY FIDELITY
HIGH EQUITY- FIDELITY FIDELITY ASSET FIDELITY
INCOME INCOME GROWTH OVERSEAS MANAGER INDEX 500
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss)..... $ 254,927 $ (505,931) $ (429,419) $ (311) $ 364,988 $ (109,536)
Net realized gain (loss) on
investments.................... 132,327 1,618,452 1,925,234 (160) 663,926 389,122
Net unrealized appreciation of
investments during the year.... 440,156 3,721,134 2,649,303 6,677 1,281,085 2,715,967
----------- ----------- ----------- -------- ----------- -----------
Net increase in net assets from
operations..................... 827,410 4,833,655 4,145,118 6,206 2,309,999 2,995,553
----------- ----------- ----------- -------- ----------- -----------
FROM VARIABLE ANNUITY CONTRACT
TRANSACTIONS
Contractholders' net premiums.... 1,340,627 4,044,472 3,701,064 23,248 1,313,614 2,421,951
Administrative charges........... (4,355) (21,830) (22,665) (11,966) (7,281)
Surrenders and forfeitures....... (288,950) (1,390,637) (1,509,084) (15) (828,163) (354,068)
Transfers between investment
portfolios..................... 4,325,677 15,191,804 15,851,318 104,650 1,876,550 10,995,467
Net repayments (withdrawals) due
to policy loans................ 85 (3,854) (5,133) (8,826) (282)
Withdrawals due to death
benefits....................... (9,539) (208,952) (26,054)
----------- ----------- ----------- -------- ----------- -----------
Net increase in net assets
derived from contract
transactions................... 5,363,545 17,611,003 18,015,500 127,883 2,341,209 13,029,733
----------- ----------- ----------- -------- ----------- -----------
Capital Contribution from
Providentmutual Life and
Annuity Company of America..... 25,000
----------- ----------- ----------- -------- ----------- -----------
Total increase in net assets..... 6,190,955 22,444,658 22,160,618 159,089 4,651,208 16,025,286
NET ASSETS
Beginning of year.............. 4,286,767 27,291,080 22,860,108 -- 16,471,115 7,246,225
----------- ----------- ----------- -------- ----------- -----------
End of year.................... $10,477,722 $49,735,738 $45,020,726 $159,089 $21,122,323 $23,271,511
=========== =========== =========== ======== =========== ===========
</TABLE>
See accompanying notes to financial statements
21
<PAGE> 22
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Changes in Net Assets for the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIDELITY QUEST FOR QUEST FOR
FIDELITY INVESTMENT QUEST FOR VALUE VALUE
CONTRAFUND GRADE BOND VALUE EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss)................... $ (144,281) $ (408) $ (54,942) $ (31,575) $ (100,692)
Net realized gain on investments............... 113,953 457 247,237 314,931 497,811
Net unrealized appreciation of investments
during the year.............................. 2,097,336 4,399 1,334,288 1,105,412 5,133,690
----------- -------- ----------- ----------- -----------
Net increase in net assets from operations..... 2,067,008 4,448 1,526,583 1,388,768 5,530,809
----------- -------- ----------- ----------- -----------
FROM VARIABLE ANNUITY CONTRACT TRANSACTIONS
Contractholders' net premiums.................. 1,525,821 34,827 1,229,182 811,707 2,943,888
Administrative charges......................... (5,051) (4,681) (6,037) (15,390)
Surrenders and forfeitures..................... (228,810) (25) (421,232) (485,083) (1,143,195)
Transfers between investment portfolios........ 9,242,839 106,454 3,356,209 2,518,729 11,176,788
Net repayments (withdrawals) due to policy
loans........................................ (288) (2,593) (773)
Withdrawals due to death benefits.............. (9,938) (3,231) (16,253)
----------- -------- ----------- ----------- -----------
Net increase in net assets derived from
contract transactions........................ 10,534,511 141,256 4,149,540 2,833,492 12,945,065
----------- -------- ----------- ----------- -----------
Capital Contribution from Providentmutual Life
and Annuity Company of America............... 25,000
----------- -------- ----------- ----------- -----------
Total increase in net assets................... 12,601,519 170,704 5,676,123 4,222,260 18,475,874
NET ASSETS
Beginning of year............................ 4,534,416 -- 5,145,872 6,555,940 19,845,750
----------- -------- ----------- ----------- -----------
End of year.................................. $17,135,935 $170,704 $10,821,995 $10,778,200 $38,321,624
=========== ======== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements
22
<PAGE> 23
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Changes in Net Assets for the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SCUDDER DREYFUS DREYFUS DREYFUS
SCUDDER GROWTH AND SCUDDER ZERO GROWTH SOCIALLY
BOND INCOME INTERNATIONAL COUPON 2000 AND INCOME RESPONSIBLE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income
(loss)..................... $ 322,760 $ 24,844 $ (13,372) $ 174,464 $ 36,293 $ (7,630)
Net realized gain (loss)
on investments............. (10,942) 55,320 3,629 50,561 1,417,384 77,482
Net unrealized appreciation
(depreciation) of
investments during the
year....................... (198,871) 406,632 370,601 (134,226) (484,771) 61,554
---------- ---------- ---------- ---------- ----------- ----------
Net increase in net assets
from operations............ 112,947 486,796 360,858 90,799 968,906 131,406
---------- ---------- ---------- ---------- ----------- ----------
FROM VARIABLE ANNUITY
CONTRACT TRANSACTIONS
Contractholders' net
premiums................... 323,646 442,431 682,287 432,012 1,384,695 440,029
Administrative charges....... (2,437) (841) (967) (1,938) (2,831) (362)
Surrenders and forfeitures... (349,330) (80,116) (62,391) (379,163) (138,624) (18,392)
Transfers between investment
portfolios................. 2,013,802 3,090,019 3,965,920 2,005,547 7,996,700 1,069,773
Net repayments (withdrawals)
due to policy loans........ (119) 69 26 (297) (205)
Withdrawals due to
death benefits............. (43,086) (1,695)
---------- ---------- ---------- ---------- ----------- ----------
Net increase in net assets
derived from contract
transactions............... 1,942,476 3,451,493 4,584,918 2,056,484 9,237,948 1,490,843
---------- ---------- ---------- ---------- ----------- ----------
Total increase in net
assets..................... 2,055,423 3,938,289 4,945,776 2,147,283 10,206,854 1,622,249
NET ASSETS
Beginning of year.......... 3,633,897 606,749 642,660 2,830,540 2,330,878 158,889
---------- ---------- ---------- ---------- ----------- ----------
End of year................ $5,689,320 $4,545,038 $ 5,588,436 $4,977,823 $12,537,732 $1,781,138
========== ========== ========== ========== =========== ==========
</TABLE>
See accompanying notes to financial statements
23
<PAGE> 24
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Changes in Net Assets for the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEUBERGER
FEDERATED U.S. FEDERATED NEUBERGER NEUBERGER & BERMAN
GOVERNMENT UTILITY & BERMAN & BERMAN LIMITED
BOND FUND FUND BALANCED GROWTH MATURITY BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss)............ $ 56,573 $ 45,124 $ (11) $ (257) $ (233)
Net realized gain on investments........ 4,801 24,018 27 2,039
Net unrealized appreciation
(depreciation) of investments during
the year.............................. (1,677) 162,819 1,338 7,212 463
---------- ---------- ------- -------- --------
Net increase in net assets from
operations............................ 59,697 231,961 1,327 6,982 2,269
---------- ---------- ------- -------- --------
FROM VARIABLE ANNUITY CONTRACT
TRANSACTIONS
Contractholders' net premiums........... 102,926 333,893 13,916 34,685
Administrative charges.................. (422) (597)
Surrenders and forfeitures.............. (13,145) (11,974) (15)
Transfers between investment
portfolios............................ 1,336,413 1,641,638 41,860 87,340 39,498
Withdrawals due to death benefits....... (62,597)
---------- ---------- ------- -------- --------
Net increase in net assets derived from
contract transactions................. 1,425,772 1,900,363 41,860 101,241 74,183
---------- ---------- ------- -------- --------
Capital Contribution from
Providentmutual Life and Annuity
Company of America.................... 25,000 25,000 25,000
---------- ---------- ------- -------- --------
Total increase in net assets............ 1,485,469 2,132,324 68,187 133,223 101,452
NET ASSETS
Beginning of year..................... 497,233 647,427 -- -- --
---------- ---------- ------- -------- --------
End of year........................... $ 1,982,702 $2,779,751 $ 68,187 $133,223 $ 101,452
========== ========== ======= ======== ========
</TABLE>
See accompanying notes to financial statements
24
<PAGE> 25
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Statements of Changes in Net Assets for the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VAN ECK VAN ECK GOLD VAN ECK ALGER AMERICAN
WORLDWIDE AND NATURAL EMERGING SMALL
TCI GROWTH BOND RESOURCES MARKETS CAPITALIZATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment loss...................... $ (104) $ (325) $ (19) $ (156) $ (1,037)
Net realized gain on investments......... 2 2,082 57 1 10
Net unrealized appreciation
(depreciation) of investments during
the year............................... (1,957) 1,185 1,566 3,026 5,653
------- -------- ------- ------- --------
Net increase (decrease) in net assets
from operations........................ (2,059) 2,942 1,604 2,871 4,626
------- -------- ------- ------- --------
FROM VARIABLE ANNUITY CONTRACT
TRANSACTIONS
Contractholders' net premiums............ 23,812 34,622 (14) 119 43,293
Surrenders and forfeitures............... (10)
Transfers between investment
portfolios............................. 35,865 54,949 16,135 68,582 408,937
------- -------- ------- ------- --------
Net increase in net assets derived from
contract transactions.................. 59,677 89,561 16,121 68,701 452,230
------- -------- ------- ------- --------
Capital Contribution from Providentmutual
Life and Annuity Company of America.... 25,000 25,000 25,000 25,000 25,000
------- -------- ------- ------- --------
Total increase in net assets............. 82,618 117,503 42,725 96,572 481,856
NET ASSETS
Beginning of year...................... -- -- -- -- --
------- -------- ------- ------- --------
End of year............................ $ 82,618 $117,503 $ 42,725 $ 96,572 $481,856
======= ======== ======= ======= ========
</TABLE>
See accompanying notes to financial statements
25
<PAGE> 26
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION
The Providentmutual Variable Annuity Separate Account (Separate Account)
was established by Providentmutual Life and Annuity Company of America
(Providentmutual) under the provisions of Pennsylvania law and commenced
operations on April 14, 1992. In December 1992, Providentmutual redomesticated
to the State of Delaware. Providentmutual is a wholly-owned subsidiary of
Provident Mutual Life Insurance Company (Provident Mutual). The Separate Account
is an investment account to which net proceeds from individual flexible premium
deferred variable annuity contracts (the Contracts) are allocated until maturity
or termination of the Contracts.
The Contracts are distributed through career agents, brokers and personal
producing general agents.
Providentmutual has structured the Separate Account as a unit investment
trust registered with the Securities and Exchange Commission under the
Investment Company Act of 1940, as amended. The Separate Account is comprised of
thirty-three Subaccounts: the Growth, Money Market, Bond, Managed, Aggressive
Growth and International Subaccounts invest in the corresponding portfolios of
the Market Street Fund, Inc.; the Fidelity High Income, Fidelity Equity-Income,
Fidelity Growth and Fidelity Overseas Subaccounts invest in the corresponding
portfolios of the Variable Insurance Products Fund; the Fidelity Asset Manager,
Fidelity Index 500, Fidelity Contrafund and Fidelity Investment Grade Bond
Subaccounts invest in the corresponding portfolios of the Variable Insurance
Products Fund II; the OCC Equity (formerly Quest for Value Equity), OCC Small
Cap (formerly Quest for Value Small Cap) and OCC Managed (formerly Quest for
Value Managed) Subaccounts invest in the corresponding portfolios of the OCC
Accumulation Trust; the Scudder Bond, Scudder Growth and Income and Scudder
International Subaccounts invest in the corresponding portfolios of the Scudder
Variable Life Investment Fund; the Dreyfus Zero Coupon 2000, Dreyfus Growth and
Income and Dreyfus Socially Responsible Subaccounts invest in the corresponding
portfolios of the Dreyfus Variable Investment Fund; and the Federated Fund for
U.S. Government Securities II (formerly Federated U.S. Government Bond Fund) and
Federated Utility Fund II (formerly Federated Utility Fund) Subaccounts invest
in the corresponding portfolios of the Federated Insurance Series (formerly
Insurance Management Series); the Neuberger & Berman Balanced, Neuberger &
Berman Growth and Neuberger & Berman Limited Maturity Bond Subaccounts invest in
the corresponding portfolios of the Neuberger & Berman Advisers Management
Trust; the American Century VP Capital Appreciation (formerly TCI Growth)
Subaccount invests in the corresponding portfolio of the American Century
Variable Portfolios, Inc. (formerly TCI Portfolios, Inc.); the Van Eck Worldwide
Bond, Van Eck Worldwide Hard Assets (formerly Van Eck Gold and Natural
Resources) and Van Eck Worldwide Emerging Markets (formerly Van Eck Emerging
Markets) Subaccounts invest in the corresponding portfolios of the Van Eck
Worldwide Insurance Trust; and the Alger American Small Capitalization
Subaccount invests in the corresponding portfolio of the Alger American Fund.
See original contract documents for availability of Subaccounts as investment
options for a particular variable annuity contract.
26
<PAGE> 27
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Notes to Financial Statements (unaudited) -- continued
- --------------------------------------------------------------------------------
1. ORGANIZATION, CONTINUED:
Net premiums from the Contracts are allocated to the Subaccounts in
accordance with contractholders instructions and are recorded as variable
annuity contract transactions in the statements of changes in net assets. Such
amounts are used to provide money to pay contract values under the Contracts
(Note 4). The Separate Account's assets are the property of Providentmutual.
Transfers between investment portfolios include transfers between the
Subaccounts and the Guaranteed Account (not shown), which is part of
Providentmutual's General Account.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed
by the Separate Account in the financial statements.
Investment Valuation:
Investment shares are valued at the net asset values of the respective
Portfolios. Transactions are recorded on the trade date. Dividend income is
recorded on the ex-dividend date.
Realized Gains and Losses:
Realized gains and losses on sales of investment shares are determined
using the specific identification basis for financial reporting and income tax
purposes.
Federal Income Taxes:
The operation of the Separate Account is included in the Federal income tax
return of Providentmutual. Under the provisions of the Contracts,
Providentmutual has the right to charge the Separate Account for Federal income
tax attributable to the Separate Account. No charge is currently being made
against the Separate Account for such tax.
Estimates:
The preparation of the accompanying financial statements required
management to make estimates and assumptions that affect the reported values of
assets and liabilities and the reported amounts from operations and contract
transactions during the period. Actual results could differ from those
estimates.
27
<PAGE> 28
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Notes to Financial Statements (unaudited) -- continued
- --------------------------------------------------------------------------------
3. INVESTMENTS
At June 30, 1997, the investments of the respective Subaccounts are as
follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES COST MARKET VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Market Street Fund, Inc.:
Growth Portfolio.................................. 1,893,903 $28,642,595 $33,919,805
Money Market Portfolio............................ 28,447,208 $28,447,208 $28,447,208
Bond Portfolio.................................... 576,421 $6,033,716 $6,104,301
Managed Portfolio................................. 856,916 $11,424,960 $13,667,806
Aggressive Growth Portfolio....................... 472,911 $7,919,559 $9,661,581
International Portfolio........................... 1,374,409 $16,766,588 $19,420,400
Variable Insurance Products Fund:
High Income Portfolio............................. 1,096,174 $12,864,746 $13,625,443
Equity-Income Portfolio........................... 2,926,887 $53,766,820 $64,567,124
Growth Portfolio.................................. 1,618,535 $44,312,436 $55,353,912
Overseas Portfolio................................ 59,541 $1,110,496 $1,193,196
Variable Insurance Products Fund II:
Asset Manager Portfolio........................... 1,544,350 $22,882,341 $25,636,210
Index 500 Portfolio............................... 392,025 $31,939,012 $40,621,611
Contrafund Portfolio.............................. 1,526,555 $23,162,179 $27,371,130
Investment Grade Bond Portfolio................... 41,362 $488,134 $489,722
OCC Accumulation Trust:
Equity Portfolio.................................. 450,144 $11,524,589 $14,755,735
Small Cap Portfolio............................... 588,006 $11,405,429 $14,541,377
Managed Portfolio................................. 1,267,077 $37,092,353 $50,049,560
Scudder Variable Life Investment Fund:
Bond Portfolio.................................... 903,927 $6,044,722 $6,047,269
Growth and Income Portfolio....................... 874,888 $7,919,425 $9,230,064
International Portfolio........................... 607,446 $7,735,859 $8,965,904
Dreyfus Variable Investment Fund:
Zero Coupon 2000 Portfolio........................ 387,688 $4,789,164 $4,753,059
Growth and Income Portfolio....................... 768,007 $15,586,939 $16,089,741
Socially Responsible Portfolio.................... 149,867 $3,041,669 $3,502,386
</TABLE>
28
<PAGE> 29
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Notes to Financial Statements (unaudited) -- continued
- --------------------------------------------------------------------------------
3. INVESTMENTS, CONTINUED
<TABLE>
<CAPTION>
SHARES COST MARKET VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Federated Insurance Series:
Fund for U.S. Government Securities II
Portfolio...................................... 230,059 $2,311,900 $2,323,596
Utility Fund II Portfolio......................... 286,046 $3,211,250 $3,538,392
Neuberger & Berman Advisers Management Trust:
Balanced Portfolio................................ 16,902 $267,351 $280,244
Growth Portfolio.................................. 17,985 $463,427 $498,906
Limited Maturity Bond Portfolio................... 39,506 $543,761 $538,068
American Century Variable Portfolios, Inc.:
American Century VP Capital Appreciation
Portfolio...................................... 13,669 $136,572 $132,039
Van Eck Worldwide Insurance Trust:
Van Eck Worldwide Bond Portfolio.................. 54,758 $582,767 $582,625
Van Eck Worldwide Hard Assets Portfolio........... 5,864 $93,066 $93,472
Van Eck Worldwide Emerging Markets Portfolio...... 43,725 $602,245 $668,560
Alger American Fund:
Alger American Small Capitalization Portfolio..... 31,188 $1,222,200 $1,232,859
</TABLE>
29
<PAGE> 30
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Notes to Financial Statements (unaudited) -- continued
- --------------------------------------------------------------------------------
3. INVESTMENTS, CONTINUED
During the six months ended June 30, 1997 and the year ended December 31,
1996, transactions in investment shares were as follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET STREET FUND, INC.
------------------------------------------------------------------------------------------------------------------
GROWTH PORTFOLIO MONEY MARKET PORTFOLIO BOND PORTFOLIO
------------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996 1997 1996
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares purchased....................... 194,746 353,660 21,880,779 48,257,103 117,050 176,063
Shares received from reinvestment of:
Dividends............................ 20,092 38,004 556,114 1,086,441 7,829 23,197
Capital gain distributions........... 197,982 56,193
---------- ---------- ----------- ----------- ---------- ----------
Total shares acquired.................. 412,820 447,857 22,436,893 49,343,544 124,879 199,260
Total shares redeemed.................. (20,973) (65,428) (20,211,893) (38,849,836) (38,551) (41,198)
---------- ---------- ----------- ----------- ---------- ----------
Net increase in shares owned........... 391,847 382,429 2,225,000 10,493,708 86,328 158,062
Shares owned, beginning of period...... 1,502,056 1,119,627 26,222,208 15,728,500 490,093 332,031
---------- ---------- ----------- ----------- ---------- ----------
Shares owned, end of period............ 1,893,903 1,502,056 28,447,208 26,222,208 576,421 490,093
========== ========== =========== =========== ========== ==========
Cost of shares acquired................ $6,736,197 $7,269,012 $ 22,436,893 $ 49,343,544 $1,302,408 $2,101,906
========== ========== =========== =========== ========== ==========
Cost of shares redeemed................ $ 283,586 $ 883,404 $ 20,211,893 $ 38,849,836 $ 410,992 $ 460,127
========== ========== =========== =========== ========== ==========
</TABLE>
30
<PAGE> 31
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Notes to Financial Statements (unaudited) -- continued
- --------------------------------------------------------------------------------
3. INVESTMENTS, CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET STREET FUND, INC.
------------------------------------------------------------------------------------------------------------------
AGGRESSIVE GROWTH
MANAGED PORTFOLIO PORTFOLIO INTERNATIONAL PORTFOLIO
------------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996 1997 1996
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares purchased............................ 122,085 217,165 106,601 143,742 111,298 338,046
Shares received from reinvestment of:
Dividends................................. 14,465 25,583 3,772 2,905 11,164 11,412
Capital gain distributions................ 6,347 26,337 748 29,259 87,406 46,267
---------- ---------- ----------- ----------- ---------- ----------
Total shares acquired....................... 142,897 269,085 111,121 175,906 209,868 395,725
Total shares redeemed....................... (73,337) (94,568) (27,959) (23,509) (59,947) (80,224)
---------- ---------- ----------- ----------- ---------- ----------
Net increase in shares owned................ 69,560 174,517 83,162 152,397 149,921 315,501
Shares owned, beginning of period........... 787,356 612,839 389,749 237,352 1,224,488 908,987
---------- ---------- ----------- ----------- ---------- ----------
Shares owned, end of period................. 856,916 787,356 472,911 389,749 1,374,409 1,224,488
========== ========== =========== =========== ========== ==========
Cost of shares acquired..................... $2,128,758 $3,730,420 $2,058,710 $2,907,441 $2,629,565 $4,989,324
========== ========== =========== =========== ========== ==========
Cost of shares redeemed..................... $ 945,845 $1,258,679 $ 412,048 $ 355,445 $ 707,949 $ 953,471
========== ========== =========== =========== ========== ==========
</TABLE>
31
<PAGE> 32
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Notes to Financial Statements (unaudited) -- continued
- --------------------------------------------------------------------------------
3. INVESTMENTS, CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VARIABLE INSURANCE PRODUCTS FUND
------------------------------------------------------------------------------------------------------------------
HIGH INCOME PORTFOLIO EQUITY-INCOME PORTFOLIO GROWTH PORTFOLIO OVERSEAS PORTFOLIO
------------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996 1997 1996 1997 1996
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares
purchased... 242,713 497,171 362,005 948,858 167,921 625,760 52,403 9,008
Shares
received
from
reinvestment
of:
Dividends... 65,635 31,527 43,550 2,439 9,845 2,459 229
Capital
gain
distributions.. 8,112 6,168 218,961 69,930 44,069 62,080 908
------------ ------------ ------------- ------------- ------------ ------------- ------------ --------
Total
shares
acquired... 316,460 534,866 624,516 1,021,227 221,835 690,299 53,540 9,008
Total
shares
redeemed... (57,165) (53,745) (62,619) (72,484) (49,052) (27,427) (2,443) (564)
------------ ------------ ------------- ------------- ------------ ------------- ------------ --------
Net
increase
in shares
owned..... 259,295 481,121 561,897 948,743 172,783 662,872 51,097 8,444
Shares
owned,
beginning
of
period.... 836,879 355,758 2,364,990 1,416,247 1,445,752 782,880 8,444 --
------------ ------------ ------------- ------------- ------------ ------------- ------------ --------
Shares
owned, end
of
period.... 1,096,174 836,879 2,926,887 2,364,990 1,618,535 1,445,752 59,541 8,444
============ ============ ============= ============= ============ ============= ============ ========
Cost of
shares
acquired... $ 3,792,424 $ 6,332,243 $ 12,689,761 $ 19,840,748 $ 7,036,613 $ 20,153,196 $ 1,001,039 $ 162,451
============ ============ ============= ============= ============ ============= ============ ========
Cost of
shares
redeemed.. $ 617,346 $ 581,561 $ 943,882 $ 1,117,224 $ 1,138,465 $ 641,881 $ 42,955 $ 10,039
============ ============ ============= ============= ============ ============= ============ ========
</TABLE>
32
<PAGE> 33
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Notes to Financial Statements (unaudited) -- continued
- --------------------------------------------------------------------------------
3. INVESTMENTS, CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VARIABLE INSURANCE PRODUCTS FUND II
- ------------------------------------------------------------------------------------------------------------------------------
ASSET MANAGER PORTFOLIO INDEX 500 PORTFOLIO CONTRAFUND PORTFOLIO INVESTMENT GRADE
BOND PORTFOLIO
- ---------------------------------------------------------------------------------------------------------
1997 1996 1997 1996 1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares
purchased... 192,339 278,005 122,751 166,250 476,789 724,270 27,528 14,613
Shares
received
from
reinvestment
of:
Dividends... 48,526 39,874 3,170 1,306 9,341 1,225
Capital gain
distributions... 121,726 32,878 6,432 3,358 24,687 3,706
---------- ---------- ----------- ----------- ---------- ----------- -------- --------
Total shares
acquired.... 362,591 350,757 132,353 170,914 510,817 727,976 28,753 14,613
Total shares
redeemed.... (65,868) (146,266) (1,424) (5,528) (19,041) (22,255) (1,337) (667)
---------- ---------- ----------- ----------- ---------- ----------- -------- --------
Net increase
in shares
owned....... 296,723 204,491 130,929 165,386 491,776 705,721 27,416 13,946
Shares owned,
beginning of
period...... 1,247,627 1,043,136 261,096 95,710 1,034,779 329,058 13,946 --
---------- ---------- ----------- ----------- ---------- ----------- -------- --------
Shares owned,
end of
period...... 1,544,350 1,247,627 392,025 261,096 1,526,555 1,034,779 41,362 13,946
---------- ---------- ----------- ----------- ---------- ----------- -------- --------
Cost of
shares
acquired.... $ 5,675,711 $ 5,494,521 $ 12,465,855 $ 13,621,230 $ 8,482,614 $ 10,770,383 $ 337,238 $ 173,988
========== ========== =========== =========== ========== =========== ======== ========
Cost of
shares
redeemed.... $ 923,879 $ 2,124,398 $ 76,275 $ 311,911 $ 239,883 $ 266,200 $ 15,409 $ 7,683
========== ========== =========== =========== ========== =========== ======== ========
</TABLE>
33
<PAGE> 34
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Notes to Financial Statements (unaudited) -- continued
- --------------------------------------------------------------------------------
3. INVESTMENTS, CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST
------------------------------------------------------------------------------------------------------------------
EQUITY PORTFOLIO SMALL CAP PORTFOLIO MANAGED PORTFOLIO
------------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996 1997 1996
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares purchased.......................... 89,062 162,103 108,293 162,087 189,120 413,755
Shares received from reinvestment of:
Dividends............................... 3,476 2,142 3,052 4,346 12,218 9,660
Capital gain distributions.............. 12,375 4,293 21,523 11,176 37,524 6,160
---------- ---------- ---------- ---------- ---------- -----------
Total shares acquired..................... 104,913 168,538 132,868 177,609 238,862 429,575
Total shares redeemed..................... (14,662) (14,069) (21,562) (30,188) (30,101) (29,711)
---------- ---------- ---------- ---------- ---------- -----------
Net increase in shares owned.............. 90,251 154,469 111,306 147,421 208,761 399,864
Shares owned, beginning of period......... 359,893 205,424 476,700 329,279 1,058,316 658,452
---------- ---------- ---------- ---------- ---------- -----------
Shares owned, end of period............... 450,144 359,893 588,006 476,700 1,267,077 1,058,316
========== ========== ========== ========== ========== ===========
Cost of shares acquired................... $ 3,191,848 $ 4,592,764 $ 2,960,955 $ 3,646,820 $ 8,826,840 $ 13,972,601
========== ========== ========== ========== ========== ===========
Cost of shares redeemed................... $ 260,809 $ 250,929 $ 363,542 $ 529,972 $ 652,332 $ 630,417
========== ========== ========== ========== ========== ===========
</TABLE>
34
<PAGE> 35
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Notes to Financial Statements (unaudited) -- continued
- --------------------------------------------------------------------------------
3. INVESTMENTS, CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SCUDDER VARIABLE LIFE INVESTMENT FUND
------------------------------------------------------------------------------------------------------------------
BOND PORTFOLIO GROWTH AND INCOME INTERNATIONAL PORTFOLIO
PORTFOLIO
==================================================================================================================
1997 1996 1997 1996 1997 1996
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares purchased............................ 98,603 367,411 382,666 420,073 195,768 367,511
Shares received from reinvestment of:
Dividends................................. 29,015 58,022 8,480 6,977 7,622 2,055
Capital gain distributions................ 2,584 22,214 1,768 3,992
----------- ----------- ----------- ----------- ----------- -----------
Total shares acquired....................... 130,202 425,433 413,360 428,818 207,382 369,566
Total shares redeemed....................... (71,642) (86,886) (23,535) (19,789) (21,705) (2,168)
----------- ----------- ----------- ----------- ----------- -----------
Net increase in shares owned................ 58,560 338,547 389,825 409,029 185,677 367,398
Shares owned, beginning of period........... 845,367 506,820 485,063 76,034 421,769 54,371
----------- ----------- ----------- ----------- ----------- -----------
Shares owned, end of period................. 903,927 845,367 874,888 485,063 607,446 421,769
=========== =========== =========== =========== =========== ===========
Cost of shares acquired..................... $860,140 $2,843,858 $3,996,958 $3,671,539 $2,781,951 $4,599,283
=========== =========== =========== =========== =========== ===========
Cost of shares redeemed..................... $473,266 $ 589,564 $ 173,492 $ 139,882 $ 252,326 $ 24,108
=========== =========== =========== =========== =========== ===========
</TABLE>
35
<PAGE> 36
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Notes to Financial Statements (unaudited) -- continued
- --------------------------------------------------------------------------------
3. INVESTMENTS, CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND
------------------------------------------------------------------------------------------------------------------
GROWTH AND INCOME SOCIALLY RESPONSIBLE
ZERO COUPON PORTFOLIO PORTFOLIO
2000 PORTFOLIO
------------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996 1997 1996
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares purchased........................... 46,567 228,907 188,411 477,085 64,592 81,633
Shares received from reinvestment of:
Dividends................................ 7,491 18,860 6,507 6,707 186
Capital gain distributions............... 1,345 7,732 65,140 3,323
----------- ----------- ------------ ----------- ----------- -----------
Total shares acquired...................... 54,058 249,112 202,650 548,932 64,592 85,142
Total shares redeemed...................... (71,400) (66,959) (75,959) (34,778) (3,383) (5,663)
----------- ----------- ------------ ----------- ----------- -----------
Net increase (decrease) in shares owned.... (17,342) 182,153 126,691 514,154 61,209 79,479
Shares owned, beginning of period.......... 405,030 222,877 641,316 127,162 88,658 9,179
----------- ----------- ------------ ----------- ----------- -----------
Shares owned, end of period................ 387,688 405,030 768,007 641,316 149,867 88,658
=========== =========== ============ =========== =========== ===========
Cost of shares acquired.................... $660,097 $3,073,171 $4,015,631 $11,274,699 $1,385,898 $1,653,499
=========== =========== ============ =========== =========== ===========
Cost of shares redeemed.................... $837,260 $ 791,662 $1,374,149 $ 583,074 $ 59,577 $ 92,804
=========== =========== ============ =========== =========== ===========
</TABLE>
36
<PAGE> 37
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Notes to Financial Statements (unaudited) -- continued
- --------------------------------------------------------------------------------
3. INVESTMENTS, CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FEDERATED INSURANCE SERIES
------------------------------------------------------------------------------------------------------------------
FUND FOR UTILITY FUND II PORTFOLIO
U.S. GOVERNMENT
SECURITIES II PORTFOLIO
------------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares purchased.............................................. 45,590 155,414 57,345 189,045
Shares received from reinvestment of:
Dividends................................................... 6,112 7,430 4,678 5,693
Capital gain distributions.................................. 332 5,679 525
---------- -------- ---------- --------
Total shares acquired......................................... 51,702 163,176 67,702 195,263
Total shares redeemed......................................... (18,145) (14,996) (17,029) (18,587)
---------- -------- ---------- --------
Net increase in shares owned.................................. 33,557 148,180 50,673 176,676
Shares owned, beginning of period............................. 196,502 48,322 235,373 58,697
---------- -------- ---------- --------
Shares owned, end of period................................... 230,059 196,502 286,046 235,373
========== ======== ========== ========
Cost of shares acquired....................................... $ 519,147 $ 1,637,184 $ 802,226 $ 2,157,050
========== ======== ========== ========
Cost of shares redeemed....................................... $ 183,314 $ 150,038 $ 179,888 $ 187,545
========== ======== ========== ========
</TABLE>
37
<PAGE> 38
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Notes to Financial Statements (unaudited) -- continued
- --------------------------------------------------------------------------------
3. INVESTMENTS, CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEUBERGER & BERMAN ADVISERS AMERICAN CENTURY
MANAGEMENT TRUST VARIABLE PORTFOLIOS,
INC.
------------------------------------------------------------------------------------------------------------------
BALANCED PORTFOLIO GROWTH PORTFOLIO LIMITED MATURITY BOND AMERICAN CENTURY
PORTFOLIO VP CAPITAL
APPRECIATION
PORTFOLIO
------------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996 1997 1996 1997 1996
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares purchased................... 13,135 4,283 12,681 5,195 31,733 11,388 7,215 8,077
Shares received from reinvestment
of:
Dividends......................... 114 1,137
Capital gain distributions........ 294 871 266
------- -------- -------- -------- ------- ------ ------- ------
Total shares acquired.............. 13,543 4,283 13,552 5,195 32,870 11,388 7,481 8,077
Total shares redeemed.............. (924) (735) (27) (585) (4,167) (1,880) (9)
------- -------- -------- -------- ------- ------ ------ ------
Net increase in shares owned....... 12,619 4,283 12,817 5,168 32,285 7,221 5,601 8,068
Shares owned, beginning of
period............................ 4,283 -- 5,168 -- 7,221 -- 8,068 --
------- -------- -------- -------- ------- ------- ------- -------
Shares owned, end of period........ 16,902 4,283 17,985 5,168 39,506 7,221 13,669 8,068
======= ======== ======== ======== ======== ======== ======== ========
Cost of shares acquired............ $ 214,464 $ 66,858 $ 355,383 $ 126,671 $ 450,749 $ 157,410 $ 71,752 $ 84,678
======= ======== ======== ======== ======== ======== ======== ========
Cost of shares redeemed............ $ 13,962 $ 9 $ 17,967 $ 660 $ 7,977 $ 56,421 $ 19,755 $ 103
======= ======== ======== ======== ======== ======== ======== ========
</TABLE>
38
<PAGE> 39
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Notes to Financial Statements (unaudited) -- continued
- --------------------------------------------------------------------------------
3. INVESTMENTS, CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VAN ECK WORLDWIDE INSURANCE TRUST ALGER AMERICAN FUND
------------------------------------------------------------------------------------------------------------------
VAN ECK WORLDWIDE VAN ECK WORLDWIDE VAN ECK WORLDWIDE ALGER AMERICAN
BOND PORTFOLIO HARD ASSETS EMERGING MARKETS SMALL
PORTFOLIO PORTFOLIO CAPITALIZATION
PORTFOLIO
------------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996 1997 1996 1997 1996
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares purchased....................... 44,233 15,517 3,235 2,662 36,697 7,735 19,180 11,790
Shares received from reinvestment of:
Dividends............................ 468 73 38
Capital gain distributions........... 54 1,128
-------- -------- ------- ------- -------- ------- ------- -------
Total shares acquired.................. 44,701 15,517 3,362 2,662 36,735 7,735 20,308 11,790
Total shares redeemed.................. (529) (4,931) (53) (107) (742) (3) (898) (12)
-------- -------- ------- ------- -------- ------- -------- -------
Net increase in shares owned........... 44,172 10,586 3,309 2,555 35,993 7,732 19,410 11,778
Shares owned, beginning of period...... 10,586 -- 2,555 -- 7,732 -- 11,778 --
-------- -------- ------- ------- -------- ------- -------- --------
Shares owned, end of period............ 54,758 10,586 5,864 2,555 43,725 7,732 31,188 11,778
======== ======== ======= ======= ======== ======= ======= =======
Cost of shares acquired................ $ 472,126 $ 168,730 $52,756 $42,864 $517,464 $ 93,586 $782,415 $476,692
======== ======== ======= ======= ======== ======= ======= =======
Cost of shares redeemed................ $ 5,677 $ 52,412 $ 849 $ 1,705 $ 8,765 $ 40 $ 36,418 $ 489
======== ======== ======= ======= ======== ======= ======= =======
</TABLE>
39
<PAGE> 40
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Notes to Financial Statements (unaudited) -- continued
- --------------------------------------------------------------------------------
4. RELATED PARTY TRANSACTIONS
Certain deductions are made from the Subaccounts and/or the premiums by
Providentmutual. The deductions may include (1) surrender charges, (2)
administration fees, (3) transfer processing fees, (4) mortality and expense
risk charges and (5) premium taxes. Premiums adjusted for these deductions are
recorded as net premiums in the statement of changes in net assets. See original
policy documents for specific charges assessed.
There are no sales expenses deducted from premiums at the time the premiums
are paid. If a contract has not been in force for six full years for Market
Street VIP and Market Street VIP/2 contracts and seven full years for an Options
VIP contract, upon surrender or for certain withdrawals, a surrender charge is
deducted from the proceeds. However, subject to certain restrictions, up to 10%
of the contract account value as of the beginning of a contract year may be
surrendered or withdrawn free of surrender charges. For Options VIP contracts,
the 10% is cumulative if unused.
An annual administrative fee of $30 is deducted from the contract account
value on each contract anniversary date beginning one year from the issue date
of the contract. In addition, to compensate for costs associated with
administration of the Market Street VIP/2 and Options VIP contracts,
Providentmutual deducts a daily asset-based administration charge from the
assets of the Separate Account equal to an annual rate of .15%. This daily
asset-based administration charge is reported in the mortality and expense risk
charges in the statements of operations.
During any given contract year, the first four transfers by Market Street
VIP contractholders and the first twelve transfers by Market Street VIP/2 and
Options VIP contractholders of amounts in the Subaccounts are free of charge. A
fee of $25 is assessed for each additional transfer. No transfer fees were
incurred during the six months ended June 30, 1997 or the year ended December
31, 1996.
The Separate Account is charged a daily mortality and expense risk charge
at an annual rate of 1.20% for the Market Street VIP contracts and 1.25% for the
Market Street VIP/2 and Options VIP contracts. Providentmutual reserves the
right to increase this charge for the Market Street VIP contracts, but in no
event will it be greater than 1.25%.
State premium taxes, when applicable, will be deducted depending upon when
such taxes are paid to the taxing authority. The premium taxes are deducted
either from premiums as they are received or from the proceeds upon withdrawal
from or surrender of the contract or upon application of the proceeds to a
payment option.
40
<PAGE> 41
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<PAGE> 42
- --------------------------------------------------------------------------------
The Providentmutual Variable Annuity Separate Account
of Providentmutual Life and Annuity Company of America
Supplementary Information (unaudited)
- --------------------------------------------------------------------------------
The table below shows the net rates of return for the Subaccounts. The net
rate of return is applicable to net assets for a variable annuity contract whose
contract year commences with the beginning date of the year shown and is not
based on the average net assets in the Subaccounts during the year.
The performance for each Subaccount is shown as the net rate of return which
reflects the Subaccounts' investment income and capital gains and losses,
realized or unrealized, less charges against the Subaccounts' assets for the
year shown.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIDELITY FIDELITY
MONEY AGGRESSIVE INTERNA- HIGH EQUITY-
GROWTH MARKET BOND MANAGED GROWTH TIONAL INCOME INCOME
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MARKET STREET VIP
For the six months ended:
June 30, 1997............... 12.61% 1.96% 1.86% 10.81% 10.93% 13.18% -- --
For the year ended:
December 31, 1996........... 17.81% 3.62% 1.41% 10.29% 19.14% 9.25% -- --
December 31, 1995........... 28.84% 4.35% 18.91% 22.87% 12.13% 12.95% -- --
December 31, 1994........... 1.19% 2.56% (6.74)% (2.99)% (1.19)% (0.93)% -- --
December 31, 1993........... 8.90% 1.37% 9.01% 10.29% 3.95% 34.49% -- --
December 31, 1992........... (0.80)% (1) 0.79%(2) 1.92%(3) 7.19%(4) 12.42%(1) (10.42)%(1) -- --
MARKET STREET VIP/2
For the six months ended:
June 30, 1997............... 12.50% 1.86% 1.76% 10.70% 10.82% 13.06% 6.96% 15.59%
For the year ended:
December 31, 1996........... 17.60% 3.42% 1.21% 10.08% 18.93% 9.04% 12.13% 12.38%
December 31, 1995........... 28.58% 4.14% 18.67% 22.62% 11.91% 12.72% 18.93% 33.22%
December 31, 1994........... 0.99% 2.36% (6.92)% (3.18)% (1.39)% (1.13)% (2.91)% 5.58%
December 31, 1993........... 0.27%(11) 0.26%(12) (0.04)%(13) (0.25)%(14) 6.84%(15) 2.68%(16) 1.99% (15) 0.73% (14)
OPTIONS VIP
For the six months ended:
June 30, 1997............... 12.50% 1.86% 1.76% 10.70% 10.82% 13.06% 6.96% 15.59%
For the year ended:
December 31, 1996........... 10.93% (19) 1.46%(20) 3.56%(19) 0.55%(21) 6.23%(22) 5.32%(23) 3.12% (23) 7.23% (23)
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SCUDDER DREYFUS DREYFUS DREYFUS
SCUDDER GROWTH AND SCUDDER ZERO GROWTH AND SOCIALLY
BOND INCOME INTERNATIONAL COUPON 2000 INCOME RESPONSIBLE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MARKET STREET VIP
For the six months ended:
June 30, 1997............. -- -- -- -- -- --
For the year ended:
December 31, 1996......... -- -- -- -- -- --
December 31, 1995......... -- -- -- -- -- --
December 31, 1994......... -- -- -- -- -- --
December 31, 1993......... -- -- -- -- -- --
December 31, 1992......... -- -- -- -- -- --
MARKET STREET VIP/2
For the six months ended:
June 30, 1997............. 2.35% 17.74% 13.32% 1.42% 8.47% 15.52%
For the year ended:
December 31, 1996......... 1.05% 20.14% 12.89% 0.85% 18.76% 19.23%
December 31, 1995......... 16.53% 12.80%(6) 5.91%(7) 16.31% 25.82%(7) 10.39%(8)
December 31, 1994......... (6.10)% -- -- (5.24)% -- --
December 31, 1993......... 0.32%(15) -- -- 0.12%(18) -- --
OPTIONS VIP
For the six months ended:
June 30, 1997............. -- -- -- -- -- --
For the year ended:
December 31, 1996......... -- -- -- -- -- --
<CAPTION>
FEDERATED
FUND FOR FEDERATED
U.S. GOVERNMENT UTILITY
SECURITIES II FUND II
- ------------------------------------------------------------
<S> <C> <C>
MARKET STREET VIP
For the six months ended:
June 30, 1997............. -- --
For the year ended:
December 31, 1996......... -- --
December 31, 1995......... -- --
December 31, 1994......... -- --
December 31, 1993......... -- --
December 31, 1992......... -- --
MARKET STREET VIP/2
For the six months ended:
June 30, 1997............. 2.30% 8.22%
For the year ended:
December 31, 1996......... 2.44% 9.70%
December 31, 1995......... 5.30%(9) 12.81%(10)
December 31, 1994......... -- --
December 31, 1993......... -- --
OPTIONS VIP
For the six months ended:
June 30, 1997............. -- --
For the year ended:
December 31, 1996......... -- --
</TABLE>
The net rate of return was calculated from the date contractholder funds were
first allocated to the Subaccount referenced above as follows: (1) July 13,
1992, (2) July 1, 1992, (3) July 21, 1992, (4) July 14, 1992, (5) May 18, 1995,
(6) June 23, 1995, (7) May 30, 1995, (8) July 10, 1995, (9) July 6, 1995, (10)
June 8, 1995, (11) November 1, 1993, (12) October 11, 1993, (13) November 3,
1993, (14) October 27, 1993, (15) November 4, 1993, (16) October 25, 1993, (17)
October 29, 1993 and (18) November 9, 1993, (19) September 9, 1996, (20) August
6, 1996, (21) November 7, 1996, (22) September 12, 1996, (23) September 13,
1996, (24) August 16, 1996, (25) August 7, 1996, (26) August 13, 1996, (27)
September 4, 1996 and (28) August 14, 1996.
42
<PAGE> 43
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIDELITY FIDELITY FIDELITY
FIDELITY FIDELITY ASSET INDEX FIDELITY INVESTMENT OCC OCC OCC
GROWTH OVERSEAS MANAGER 500 CONTRAFUND GRADE BOND EQUITY SMALL CAP MANAGED
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
-- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- --
13.04% -- 10.44% 19.37% 10.86% -- 12.87% 13.85% 13.20%
12.80% -- 12.70% 20.80% 19.31% -- 21.34% 16.76% 20.75%
33.49% -- 15.33% 35.29% 17.70%(5) -- 36.93% 13.63% 43.54%
(1.41)% -- (7.39)% (0.36)% -- -- 2.37% (2.38)% 1.19%
0.31%(16) -- 4.06%(16) 0.63%(14) -- -- 0.32%(17) 2.33%(16) 0.27%(14)
13.04% 15.63% 10.44% 19.37% 10.86% 2.10% -- -- --
7.45%(24) 7.30%(25) 8.33%(19) 12.43%(26) 9.50%(23) 4.14%(27) -- -- --
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMERICAN
NEUBERGER NEUBERGER NEUBERGER CENTURY VP VAN ECK VAN ECK
& BERMAN & BERMAN & BERMAN LIMITED CAPITAL WORLDWIDE WORLDWIDE
BALANCED FUND GROWTH FUND MATURITY BOND FUND APPRECIATION FUND BOND FUND HARD ASSETS FUND
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
10.50% 16.37% 2.25% (4.13)% (1.56)% (0.99)%
7.72%(28) 10.31%(25) 2.84%(27) (2.64)%(27) 2.89%(27) 4.22%(27)
<CAPTION>
VAN ECK
WORLDWIDE ALGER AMERICAN
EMERGING SMALL
MARKETS FUND CAPITALIZATION FUND
- ------------- -------------------------
<C> <S> <C> <C>
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
22.02% (0.05)%
3.18%(27) 1.91%(25)
</TABLE>
43
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<PAGE> 45
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<PAGE> 46
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<PAGE> 47
SEMI-ANNUAL REPORT
June 30, 1997
- --------------------------
PROVIDENTMUTUAL LIFE
AND ANNUITY COMPANY
OF AMERICA, A STOCK LIFE
INSURANCE COMPANY
PROVIDENTMUTUAL VARIABLE
ANNUITY SEPARATE ACCOUNT
MARKET STREET FUND, INC.
- --------------------------
[PROVIDENTMUTUAL LIFE AND ANNUITY COMPANY OF AMERICA LOGO]
Variable Annuity contracts issued by
Providentmutual are distributed by
1717 Capital Management Company,
Wilmington, DE, a registered broker-dealer.
This Report has been prepared for
contractholders. It is not authorized for other
distribution unless preceded or
accompanied by an effective prospectus.
PL 506 6.97
- ---------------
BULK RATE
U.S. POSTAGE
PAID
WILMINGTON, DE
PERMIT NO. 1387
- ---------------
