<PAGE>
Semi-Annual Report
.Pacific Corinthian Variable Separate Account of
Pacific Corinthian Life Insurance Company
[LOGO OF PACIFIC CORINTHIAN VARIABLE ANNUITY APPEARS HERE]
Pacific Corinthian Life Insurance Company
<PAGE>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
STATEMENTS OF ASSETS & LIABILITIES
JUNE 30, 1996 (UNAUDITED)
(IN THOUSANDS)
<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>
ASSETS
Investments in Pacific Select Fund:
Money Market (583 shares; cost $5,846)..............$ 5,844
Equity (4,558 shares; cost $61,114)................. $ 92,880
Bond and Income (2,883 shares; cost $33,661)........ $ 33,570
Government Securities (165 shares; cost $1,684)..... $ 1,684
Equity Income (1,055 shares; cost $14,771).......... $ 19,441
Multi-Strategy (1,268 shares; cost $15,060)......... $ 17,436
Receivables:
Fund shares redeemed................................ 70
--------- ---------- ----------- ---------- ----------- ----------
TOTAL ASSETS........................................... 5,844 92,880 33,570 1,684 19,441 17,506
--------- ---------- ----------- ---------- ----------- ----------
LIABILITIES
Payables:
Due to Pacific Corinthian Life Insurance Co........... 70
Other Liabilities..................................... 14 640 196 4 184 22
--------- ---------- ----------- ---------- ----------- ----------
TOTAL LIABILITIES...................................... 14 640 196 4 184 92
--------- ---------- ----------- ---------- ----------- ----------
NET ASSETS.............................................$ 5,830 $ 92,240 $ 33,374 $ 1,680 $ 19,257 $ 17,414
========= ========== =========== ========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
Variable Variable Variable Variable Variable
Account X Account XI Account XII Account XIII Account XIV
---------- ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Managed Bond (4 shares; cost $45)................... $ 45
High Yield Bond (8 shares; cost $78)................ $ 79
Equity Index (20 shares; cost $327)................. $ 366
International (30 shares; cost $380)................ $ 426
Growth LT (70 shares; cost $956).................... $ 1,098
Receivables:
Fund shares redeemed................................
---------- ----------- ------------ ------------ -----------
TOTAL ASSETS........................................... 45 79 366 426 1,098
---------- ----------- ------------ ------------ -----------
LIABILITIES
Payables:
Due to Pacific Corinthian Life Insurance Co...........
Other Liabilities..................................... 1 1 3
---------- ----------- ------------ ------------ -----------
TOTAL LIABILITIES...................................... 1 1 3
---------- ----------- ------------ ------------ -----------
NET ASSETS............................................. $ 45 $ 79 $ 365 $ 425 $ 1,095
========== =========== ============ ============ ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
B-1
<PAGE>
PACIFIC CORINTHIAN SEPARATE ACCOUNT
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1996
(IN THOUSANDS)
<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>
INVESTMENT INCOME:
Dividends............... $ 140 $ 5,150 $ 1,209 $ 77 $ 1,084 $ 1,153
-------- -------- -------- -------- -------- --------
Total Income...... 140 5,150 1,209 77 1,084 1,153
-------- -------- -------- -------- -------- --------
EXPENSES:
Mortality and Expense
Risk Fees.............. 36 487 207 11 114 106
Other Operating
Expenses............... 4 2 1 1
-------- -------- -------- -------- -------- --------
Total Expenses... 36 491 209 11 115 107
-------- -------- -------- -------- -------- --------
NET INVESTMENT INCOME (LOSS).. 104 4,659 1,000 66 969 1,046
-------- -------- -------- -------- -------- --------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net Realized Gain....... 1 1,384 71 3 856 337
Net Unrealized Gain
(Loss)................. 6 11,719 (4,080) (124) (572) (885)
-------- -------- -------- -------- -------- --------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS..... 7 13,103 (4,009) (121) 284 (548)
-------- -------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING
FROM OPERATIONS.............. $ 111 $ 17,762 $ (3,009) $ (55) $ 1,253 $ 498
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Variable Variable Variable Variable Variable
Account X Account XI Account XII Account XIII Account XIV
--------- ---------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income
Dividends............... $ 5 $ 4 $ 11 $ 3 $ 4
-------- -------- -------- -------- --------
Total Income....... 5 4 11 3 4
-------- -------- -------- -------- --------
EXPENSES:
Mortality and Expense
Risk Fees.............. 1 2 2 5
-------- -------- -------- -------- --------
Other Operating
Expenses...............
-------- -------- -------- -------- --------
Total Expenses... 1 0 2 2 5
-------- -------- -------- -------- --------
NET INVESTMENT INCOME (LOSS).. 4 4 9 1 (1)
-------- -------- -------- -------- --------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net Realized Gain....... 1 3 6 35
Net Unrealized Gain
(Loss)................. (8) (3) 16 26 51
-------- -------- -------- -------- --------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS........ (7) (3) 19 32 86
-------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING
FROM OPERATIONS.............. $ (3) $ 1 $ 28 $ 33 $ 85
======== ======== ======== ======== ========
</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, 1996 (UNAUDITED)
(IN THOUSANDS)
<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>
FROM OPERATIONS:
Net Investment Income (Loss)............... $ 104 $ 4,659 $ 1,000 $ 66 $ 969 1,046
Net Realized Gain on Investments........... 1 1,384 71 3 856 337
Net Unrealized Gain (Loss) on Investments.. 6 11,719 (4,080) (124) (572) (885)
---------- ----------- ------------ ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS................... 111 17,762 (3,009) (55) 1,253 498
---------- ----------- ------------ ----------- ---------- ----------
FROM ACCOUNT TRANSACTIONS:
Transfers in............................... 678 333 63 40 22 45
Transfers out.............................. (868) (4,094) (1,751) (292) (2,441) (1,619)
---------- ----------- ------------ ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM ACCOUNT TRANSACTIONS................... (190) (3,761) (1,688) (252) (2,419) (1,574)
---------- ----------- ------------ ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS........ (79) 14,001 (4,697) (307) (1,166) (1,076)
NET ASSETS
Beginning of period........................ 5,909 78,239 38,071 1,987 20,423 18,490
--------- ---------- ----------- ----------- ---------- ----------
End of period.............................. $ 5,830 $ 92,240 $ 33,374 $ 1,680 $ 19,257 $ 17,414
========= ========== =========== =========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Variable Variable Variable Variable Variable
Account X Account XI Account XII Account XIII Account XIV
---------- ---------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss)............... $ 4 $ 4 $ 9 $ 1 $ (1)
Net Realized Gain on Investments........... 1 3 6 35
Net Unrealized Gain (Loss) on Investments.. (8) (3) 16 26 51
---------- ---------- ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS................... (3) 1 28 33 85
---------- ---------- ----------- ------------ -----------
FROM ACCOUNT TRANSACTIONS:
Transfers in............................... 8 61 101 244
Transfers out.............................. (84) (23) (59) (42)
---------- ---------- ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM ACCOUNT TRANSACTIONS................... (76) 0 38 42 202
---------- ---------- ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS........ (79) 1 66 75 287
NET ASSETS
Beginning of period........................ 124 78 299 350 808
---------- ---------- ----------- ------------ -----------
End of period.............................. $ 45 $ 79 $ 365 $ 425 $ 1,095
========== ========== =========== ============ ===========
</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, 1995
<TABLE>
<CAPTION>
Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account
I II III IV VII IX X
-------- --------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss).............. $ 276 $ (649) $ 2,063 $ 87 $ 87 $ 410 $ 5
Net Realized Gain on Investments.......... 20 2,053 95 10 1,312 491
Net Unrealized Gain (Loss) on Investments. (8) 14,129 7,961 245 4,148 3,117 9
-------- --------- -------- -------- -------- -------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS................ 288 15,533 10,119 342 5,547 4,018 14
-------- --------- -------- -------- -------- -------- --------
FROM ACCOUNT TRANSACTIONS:
Transfers in.............................. 1,391 797 244 146 288 161 110
Transfers out............................. (3,927) (10,979) (6,230) (756) (6,835) (5,356)
-------- --------- -------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS
FROM ACCOUNT TRANSACTIONS................. (2,536) (10,182) (5,986) (610) (6,547) (5,195) 110
-------- --------- -------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS....... (2,248) 5,351 4,133 (268) (1,000) (1,177) 124
NET ASSETS
Beginning of period....................... 8,157 72,888 33,938 2,255 21,423 19,667
-------- --------- -------- -------- -------- -------- --------
End of period............................. $ 5,909 $ 78,239 $ 38,071 $ 1,987 $20,423 $ 18,490 $ 124
======== ========= ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Variable Variable Variable Variable
Account Account Account Account
XI XII XIII XIV
-------- ------- -------- --------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss).............. $ 4 $ 1 $ 4 $ 48
Net Realized Gain on Investments.......... 3
Net Unrealized Gain (Loss) on Investments. 4 24 19 92
-------- ------- -------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS................ 8 25 23 143
-------- ------- -------- --------
FROM ACCOUNT TRANSACTIONS:
Transfers in.............................. 70 283 390 686
Transfers out............................. (9) (63) (21)
-------- ------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS
FROM ACCOUNT TRANSACTIONS................. 70 274 327 665
-------- ------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS....... 78 299 350 808
NET ASSETS
Beginning of period.......................
-------- ------- -------- --------
End of period............................. $ 78 $ 299 $ 350 $ 808
======== ======= ======== ========
</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").
The Separate Account held by the Company represents funds from individual
flexible premium deferred annuity and variable accumulation contracts.
On December 31, 1994 under an Agreement and Plan of Reorganization
("Agreement") the Pacific Select Fund (the "Fund") acquired substantially all
the assets of each of the series of the Pacific Corinthian Variable Fund
("Corinthian Fund") in exchange for shares of 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 Fund as follows:
<TABLE>
<CAPTION>
VARIABLE ACCOUNTS PORTFOLIOS
----------------- ----------
<S> <C>
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 Bond Portfolio
Variable Account XII ** Equity Index Portfolio
Variable Account XIII ** International Portfolio
Variable Account XIV ** Growth LT Portfolio
</TABLE>
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:
The preparation of the accompanying financial statements requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
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. The
Company further guarantees that the ordinary operating expenses of a Variable
Account together with the operating expenses incurred by its underlying Fund
Portfolio, exclusive of advisory and management fees, interest, taxes,
brokerage commissions, transaction costs or extraordinary expenses, will not
exceed 0.6% of average daily net assets annually after consideration for any
adjustment by the Fund's Investment Adviser for Fund expenses in excess of
state expense limitations, except that additional custodial costs associated
with holding foreign securities and foreign taxes on dividends, interests and
gains will also be excluded with respect to the underlying International
Portfolio of the Fund.
B-6
<PAGE>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
4. SELECTED ACCUMULATION UNIT** INFORMATION
Selected accumulation unit information for the period ended June 30, 1996
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:
Beginning $ 1.753 $ 4.117 $ 3.958 $ 1.804 $ 1.740 $ 1.677
=========== ============ =========== ========== ============ ============
Ending $ 1.785 $ 5.068 $ 3.645 $ 1.756 $ 1.850 $ 1.723
=========== ============ =========== ========== ============ ============
Number of Units Outstanding at
End of period 3,266,243 18,199,110 9,156,660 956,832 10,406,498 10,106,583
</TABLE>
<TABLE>
<CAPTION>
VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
ACCOUNT X ACCOUNT XI ACCOUNT XII ACCOUNT XIII ACCOUNT XIV
----------- ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
ACCUMULATION UNIT
VALUE:
Beginning $ 1.167 $ 1.151 $ 1.334 $ 1.103 $ 1.306
========= ========= ========== ========== ==========
Ending $ 1.144 $ 1.171 $ 1.455 $ 1.211 $ 1.450
========= ========= ========== ========== ==========
Number of Units Outstanding at
End of period 39,137 67,298 250,994 350,532 755,215
</TABLE>
- ------------
** 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
