<PAGE>
Semi-Annual Report
. Pacific Corinthian Variable Separate Account of
Pacific Corinthian Life Insurance Company
LOGO OF PACIFIC CORINTHIAN
VARIABLE ANNUITY
<PAGE>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
STATEMENTS OF ASSETS & LIABILITIES
JUNE 30, 1995 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Variable Variable Variable Variable Variable Variable Variable
Account I Account II Account III Account IV Account VII Account IX Account X
--------- ---------- ----------- ---------- ----------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in Pacific Select Fund:
Money Market (691 shares; cost $6,932)......... $ 6,925
Equity (4,830 shares; cost $63,128)............ $ 75,829
Bond and Income (3,112 shares; cost $36,178)... $ 37,767
Government Securities (210 shares; cost $2,131) $ 2,185
Equity Income (1,283 shares; cost $17,235)..... $ 21,003
Multi-Strategy (1,427 shares; cost $16,652).... $ 18,801
Managed Bond (11 shares; cost $113)............ $ 117
High Yield Bond (5 shares; cost $51)...........
Equity Index (4 shares; cost $52)..............
International (21 shares; cost $249)...........
Growth LT (43 shares; cost $514)...............
Receivables:
Due from Pacific Corinthian Life Insurance Co.. 12 12 12
Fund shares redeemed........................... 36 43
-------- -------- -------- -------- -------- -------- -------
TOTAL ASSETS 6,925 75,841 37,767 2,197 21,039 18,844 129
-------- -------- -------- -------- -------- -------- -------
LIABILITIES
Payables:
Due to Pacific Corinthian Life Insurance Co.... 36 43
Fund shares purchased.......................... 12 12 12
Other Liabilities.............................. 26 701 355 46 99 66
-------- -------- -------- -------- -------- -------- -------
TOTAL LIABILITIES................................ 26 713 355 58 135 109 12
-------- -------- -------- -------- -------- -------- -------
NET ASSETS....................................... $ 6,899 $ 75,128 $ 37,412 $ 2,139 $ 20,904 $ 18,735 $ 117
======== ======== ======== ======== ======== ======== =======
<CAPTION>
Variable Variable Variable Variable
Account XI Account XII Account XIII Account XIV
---------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
ASSETS
Investments in Pacific Select Fund:
Money Market (691 shares; cost $6,932).........
Equity (4,830 shares; cost $63,128)............
Bond and Income (3,112 shares; cost $36,178)...
Government Securities (210 shares; cost $2,131)
Equity Income (1,283 shares; cost $17,235).....
Multi-Strategy (1,427 shares; cost $16,652)....
Managed Bond (11 shares; cost $113)............
High Yield Bond (5 shares; cost $51)........... $ 52
Equity Index (4 shares; cost $52).............. $ 58
International (21 shares; cost $249)........... $ 265
Growth LT (43 shares; cost $514)............... $ 568
Receivables:
Due from Pacific Corinthian Life Insurance Co. 8 20 16
Fund shares redeemed...........................
------ ------ ------- -------
TOTAL ASSETS 60 58 285 584
------ ------ ------- -------
LIABILITIES
Payables:
Due to Pacific Corinthian Life Insurance Co....
Fund shares purchased.......................... 8 20 16
Other Liabilities.............................. 1 1
------ ------ ------- -------
TOTAL LIABILITIES................................ 8 0 21 17
------ ------ ------- -------
NET ASSETS....................................... $ 52 $ 58 $ 264 $ 567
====== ====== ======= =======
</TABLE>
See Notes to Financial Statements.
B-1
<PAGE>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDING JUNE 30, 1995 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Variable Variable Variable Variable Variable Variable Variable
Account I Account II Account III Account IV Account VII Account IX Account X
--------- ---------- ----------- ---------- ----------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income
Dividends.................................... $ 188 $ 282 $ 1,298 $ 60 $ 193 $ 346 $ 3
-------- -------- -------- -------- --------- -------- -------
Total Income............................... 188 282 1,298 60 193 346 3
-------- -------- -------- -------- --------- -------- -------
Expenses:
Mortality and Expense Risk Fees............. 43 438 212 13 126 113 1
Recordkeeping Fees.......................... 2 2 2 2 2 2 2
Other Operating Expenses.................... 5 20 12 1 6 8
-------- -------- -------- -------- --------- -------- -------
Total Expenses before Reimbursement....... 50 460 226 16 134 123 3
Expense Reimbursement in Excess of
Allowable Expenses........................ (2) (2)
-------- -------- -------- -------- --------- -------- -------
Total Expenses.......................... 50 460 226 16 132 123 1
-------- -------- -------- -------- --------- -------- -------
NET INVESTMENT INCOME (LOSS).................... 138 (178) 1,072 44 61 223 2
-------- -------- -------- -------- --------- -------- -------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net Realized Gain (Loss).................... 19 661 (106) 564 208
Net Unrealized Gain (Loss).................. (6) 6,781 5,562 176 2,675 2,005 4
-------- -------- -------- -------- -------- -------- -------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS................................ 13 7,442 5,456 176 3,239 2,213 4
-------- -------- -------- -------- -------- -------- -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS..................... $ 151 $ 7,264 $ 6,528 $ 220 $ 3,300 $ 2,436 $ 6
======== ======== ======== ======== ========= ======== =======
<CAPTION>
Variable Variable Variable Variable
Account XI Account XII Account XIII Account XIV
---------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Income
Dividends.................................... $ 2 $ 1 $ 3
-------- -------- -------- --------
Total Income............................... 2 1 3
-------- -------- -------- --------
Expenses:
Mortality and Expense Risk Fees............. $ 1 2
Recordkeeping Fees.......................... 2 2 2 2
Other Operating Expenses....................
-------- -------- -------- --------
Total Expenses before Reimbursement....... 2 2 3 4
Expense Reimbursement in Excess of
Allowable Expenses........................ (2) (2) (2) (2)
-------- -------- -------- --------
Total Expenses.......................... 0 0 1 2
-------- -------- -------- --------
NET INVESTMENT INCOME (LOSS).................... 2 1 (1) 1
-------- -------- -------- --------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net Realized Gain (Loss)....................
Net Unrealized Gain (Loss).................. 1 6 16 55
-------- --------- -------- --------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS................................ 1 6 16 55
-------- -------- -------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS..................... $ 3 $ 7 $ 15 $ 56
======== ======== ======== ========
</TABLE>
See Notes to Financial Statements.
B-2
<PAGE>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED JUNE 30, 1995 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Variable Variable Variable Variable Variable Variable Variable
Account I Account II Account III Account IV Account VII Account IX Account X
--------- ---------- ----------- ---------- ----------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss)................. $ 138 $ (178) $ 1,072 $ 44 $ 61 $ 223 $ 2
Net Realized Gain (Loss) on Investments...... 19 661 (106) 564 208
Net Unrealized Gain (Loss) on Investments.... (6) 6,781 5,562 176 2,675 2,005 4
-------- -------- -------- -------- --------- -------- -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS...................... 151 7,264 6,528 220 3,300 2,436 6
-------- -------- -------- -------- --------- -------- -------
FROM ACCOUNT TRANSACTIONS:
Transfers in................................ 1,291 720 107 129 190 126 111
Transfers out............................... (2,700) (5,744) (3,161) (465) (4,009) (3,494)
-------- -------- -------- -------- --------- -------- -------
NET INCREASE (DECREASE) IN NET ASSETS
FROM ACCOUNT TRANSACTIONS..................... (1,409) (5,024) (3,054) (336) (3,819) (3,368) 111
-------- -------- -------- -------- --------- -------- -------
NET INCREASE (DECREASE) IN NET ASSETS........... (1,258) 2,240 3,474 (116) (519) (932) 117
NET ASSETS
Beginning of period......................... 8,157 72,888 33,938 2,255 21,423 19,667
-------- -------- -------- -------- -------- -------- -------
End of period............................... $ 6,899 $ 75,128 $ 37,412 $ 2,139 $ 20,904 $ 18,735 $ 117
======== ======== ======== ======== ========= ======== =======
<CAPTION>
Variable Variable Variable Variable
Account XI Account XII Account XIII Account XIV
---------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss)................. $ 2 $ 1 $ (1) $ 1
Net Realized Gain (Loss) on Investments......
Net Unrealized Gain (Loss) on Investments.... 1 6 16 55
-------- -------- -------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS...................... 3 7 15 56
-------- -------- -------- --------
FROM ACCOUNT TRANSACTIONS:
Transfers in................................ 49 51 308 512
Transfers out............................... (59) (1)
-------- -------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS
FROM ACCOUNT TRANSACTIONS..................... 49 51 249 511
-------- -------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS........... 52 58 264 567
NET ASSETS
Beginning of period.........................
-------- -------- -------- --------
End of period............................... $ 52 $ 58 $ 264 $ 567
======== ======== ======== ========
</TABLE>
See Notes to Financial Statements.
B-3
<PAGE>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1994
(IN THOUSANDS)
<TABLE>
<CAPTION>
Variable Variable Variable Variable Variable Variable Variable Variable
Account I Account II Account III Account IV Account V Account VII Account VIII Account IX
--------- ---------- ----------- ---------- --------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income...... $ 162 $ 780 $ 4,682 $ 122 $ 11 $ 229 $ 88 $ 333
Net Realized Gain (Loss)
on Investments........... 663 (68) 1 26 (7) 391 192
Net Unrealized (Loss)
on Investments........... (4,702) (8,554) (194) (87) (995) (1,374) (1,212)
-------- -------- -------- -------- -------- --------- -------- -------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................... 162 (3,259) (3,940) (71) (50) (773) (895) (687)
-------- -------- -------- -------- -------- --------- -------- -------
FROM ACCOUNT TRANSACTIONS:
Transfers in.............. 2,785 1,272 461 160 517 16,011 438 243
Transfers out............. (3,865) (9,725) (5,749) (460) (3,209) (1,413) (15,058) (4,560)
-------- -------- -------- -------- -------- --------- -------- -------
NET INCREASE (DECREASE) IN NET
ASSETS FROM ACCOUNT
TRANSACTIONS................ (1,080) (8,453) (5,288) (300) (2,692) 14,598 (14,620) (4,317)
-------- -------- -------- -------- -------- --------- -------- -------
NET INCREASE (DECREASE)
IN NET ASSETS................ (918) (11,712) (9,228) (371) (2,742) 13,825 (15,515) (5,004)
NET ASSETS
Beginning of year.......... 9,075 84,600 43,166 2,626 2,742 7,598 15,515 24,671
-------- -------- -------- -------- -------- --------- -------- -------
End of year................ $ 8,157 $ 72,888 $ 33,938 $ 2,255 $ 0 $ 21,423 $ 0 $19,667
======== ======== ======== ======== ======== ========= ======== =======
</TABLE>
See Notes to Financial Statements.
B-4
<PAGE>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Organization:
Pacific Corinthian Variable Separate Account of Pacific Corinthian Life
Insurance Company (the "Separate Account"), is a separate investment account
established by a resolution of the Board of Directors of Pacific Corinthian Life
Insurance Company (the "Company").
On December 31, 1994 under an Agreement and Plan of Reorganization
("Agreement") the Pacific Select Fund (the "Fund") acquired substantially all of
each of the series of the Pacific Corinthian Variable Fund ("Corinthian Fund")
in exchange for beneficial interest in the Fund and assumed certain identified
liabilities of the Corinthian Fund.
The Separate Account which operates as a unit investment trust under the
Investment Company Act of 1940, as amended, is divided into subaccounts
("Variable Accounts"). Each Variable Account invests in shares of a designated
Portfolio of the Pacific Select Fund, a mutual fund not otherwise issued to the
public, as follows:
Variable Account Portfolios
---------------- ----------
Variable Account I Money Market Portfolio
Variable Account II Equity Portfolio
Variable Account III Bond and Income Portfolio
Variable Account IV Government Securities Portfolio
Variable Account VII Equity Income Portfolio
Variable Account IX Multi-Strategy Portfolio
Variable Account X** Managed Bond Portfolio
Variable Account XI** High Yield Portfolio
Variable Account XII** Equity Index Portfolio
Variable Account XIII** International Portfolio
Variable Account XIV** Growth LT Portfolio
Any Contract Owner who held units in Variable Account V or VIII on December
30, 1994 received units in Variable Account VII in exchange for their units held
in their respective Variable Accounts. Variable Accounts V and VIII were closed
on December 31, 1994 in conjunction with the Agreement.
The Company, a subsidiary of Pacific Mutual Life Insurance Company ("Pacific
Mutual"), is a stock life insurance company organized under the laws of the
State of California.
The Company was formed to rehabilitate First Capital Life Insurance Company
under a five year rehabilitation plan ("the Plan"). The Plan required all
Contract Owners to make an election to either surrender their Contract or
continue as Contract Owners and consent to the assumption and reinsurance by the
Company.
The Plan does not allow the Company to accept new premiums nor does it allow
Contract Owners to transfer from any of the Variable Accounts to the Fixed
Account, or from the Fixed Account to any of the Variable Accounts. Transfers
continue to be permitted among the Variable Accounts. The Plan had no impact
upon the operations or unit values of the Separate Account.
- ----------
**Accounts established in conjunction with the Agreement.
B-5
<PAGE>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
2. Significant Accounting Policies:
A. Investment Valuation:
Investments in shares of the Fund are valued at the reported net asset
values of the respective portfolio.
B. Reinvestment of Dividends:
Dividends received from net investment income and net realized capital
gains are reinvested in additional shares of the portfolio of the Fund
making the distribution or, at the election of the Separate Account, are
received in cash. Dividend income and capital gain distributions are
recorded as income on the ex-dividend date.
C. Federal Income Taxes:
Operations of the Separate Account form a part of the Company, which is
taxed as a "life insurance company" under the Internal Revenue Code (the
"Code"). Under current law, no Federal income taxes are payable with respect
to the Separate Account.
Under the principles set forth in Internal Revenue Service Revenue
Ruling 81-225 and section 817(h) of the Code and regulations thereunder, the
Company believes that it will be treated as the owner of the assets invested
in the Separate Account for Federal income tax purposes, with the result
that earnings and gains, if any derived from those assets will not be
included in a Contract Owner's gross income until amounts are withdrawn or
received pursuant to an Optional Payment Plan.
3. Contract Charges:
A contingent deferred sales charge may be deducted upon partial or
complete withdrawal or upon annuitization of a contract.
An annual contract maintenance charge of $30 is imposed on all contracts
on December 31 of each year. The charge covers the cost of contract
administration for the following year and is apportioned equally among the
accounts to which the Contract Value is allocated.
Mortality and expense risks assumed by the Company are compensated by a
charge equivalent to an annual rate of 1.19% of the value of each Variable
Account's net assets of which approximately 1.00% is for assuming mortality
risks and 0.19% is for assuming expense risks.
In addition, the Separate Account bears certain of its operating
expenses, subject to the Company guarantee that such expenses will not
exceed 0.25% of any Variable Account's average daily net assets annually.
4. Account Transfers:
The Contract Owner may transfer all or a part of the accumulated value
of the Contract among the Variable Accounts. However, transfers to or from
the Fixed Account are not permitted.
B-6
<PAGE>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
(UNAUDITED)
5. Select Accumulation Unit** Information
Select accumulation unit information for the period ended June 30, 1995
were as follows:
<TABLE>
<CAPTION> Variable Variable Variable Variable Variable Variable
Account I Account II Account III Account IV Account VII Account IX
--------- ---------- ----------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE:
Begining.............................. $ 1.681 $ 3.366 $ 2.996 $ 1.538 $ 1.338 $ 1.355
========= ========== ========== ========= ========== ==========
Ending................................ $ 1.716 $ 3.712 $ 3.594 $ 1.696 $ 1.563 $ 1.540
========= ========== ========== ========= ========== ==========
Number of Units Outstanding at
End of Period......................... 4,022,331 20,360,069 10,471,639 1,283,915 13,389,476 12,183,081
<CAPTION> Variable Variable Variable Variable Variable
Account X Account XI Account XII Account XIII Account XIV
--------- ---------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
1/20/95* 2/03/95* 1/20/95* 1/19/95* 1/20/95*
ACCUMULATION UNIT VALUE:
Begining.............................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========= ========== ========== ========= ==========
Ending................................ $ 1.096 $ 1.081 $ 1.179 $ 1.075 $ 1.144
========= ========== ========== ========= ==========
Number of Units Outstanding at
End of Period......................... 106,463 48,136 48,897 245,313 495,398
</TABLE>
- -----------------
* Date Variable Account began operations.
** Accumulation Unit: unit of measure used to calculate the value of a Contract
Owner's interest in a Variable Account during the Accumulated Period.
B-7
