<PAGE>
June 30, 1999 . Pacific Select Fund
. Pacific Corinthian Variable
Separate Account of
Pacific Life Insurance Company
Semi-Annual
Reports
Pacific Corinthian
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PACIFIC SELECT FUND
<S> <C>
Chairman's Letter.................................................. A-1
Performance Discussion............................................. A-2
Financial Statements:
Statements of Assets and Liabilities............................. B-1
Statements of Operations......................................... B-3
Statements of Changes in Net Assets.............................. B-5
Financial Highlights............................................... B-9
Schedules of Investments and Notes................................. B-13
Notes to Financial Statements...................................... B-80
Special Meeting of Shareholders.................................... B-86
<CAPTION>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
<S> <C>
Financial Statements:
Statement of Assets and Liabilities.............................. C-1
Statement of Operations.......................................... C-2
Statement of Changes in Net Assets............................... C-3
Notes to Financial Statements...................................... C-5
</TABLE>
<PAGE>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Variable Variable Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account Account Account Account Account
I II III IV VII IX X XI XII XIII XIV
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in
Pacific Select
Fund:
Money Market
Portfolio
(365 shares;
cost $3,670)........... $3,679
Equity Portfolio
(1,989 shares;
cost $28,531).......... $61,169
Bond and Income
Portfolio
(1,057 shares;
cost $12,311).......... $12,325
Government
Securities
Portfolio
(113 shares;
cost $1,160)........... $1,168
Equity Income
Portfolio
(545 shares;
cost $8,185)........... $15,298
Multi-Strategy
Portfolio
(471 shares;
cost $5,732)........... $8,126
Managed Bond
Portfolio
(35 shares;
cost $386)............. $365
High Yield Bond
Portfolio
(26 shares;
cost $248)............. $236
Equity Index
Portfolio
(90 shares;
cost $2,351)........... $3,217
International
Portfolio
(38 shares;
cost $527)............. $595
Growth LT
Portfolio
(159 shares;
cost $3,127)........... $5,126
Receivables:
Due from Pacific
Life Insurance
Company................. 72
Fund shares
redeemed................ 14 2 73
--------------------------------------------------------------------------------------------------
Total Assets.............. 3,693 61,171 12,398 1,168 15,298 8,126 365 236 3,217 595 5,198
--------------------------------------------------------------------------------------------------
LIABILITIES
Payables:
Due to Pacific
Life Insurance
Company................. 14 2 73
Fund shares
purchased............... 72
Other liabilities........ 6 402 49 2 127 10 7 2 16
--------------------------------------------------------------------------------------------------
Total Liabilities......... 20 404 122 2 127 10 7 2 88
--------------------------------------------------------------------------------------------------
NET ASSETS................ $3,673 $60,767 $12,276 $1,166 $15,171 $8,116 $365 $236 $3,210 $593 $5,110
--------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
C-1
<PAGE>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1999 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Variable Variable Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account Account Account Account Account
I II III IV VII IX X XI XII XIII XIV
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends............ $80 $4,380 $973 $45 $1,229 $578 $19 $11 $32 $29 $374
--------------------------------------------------------------------------------------------------
Total Investment
Income............... 80 4,380 973 45 1,229 578 19 11 32 29 374
--------------------------------------------------------------------------------------------------
EXPENSES
Mortality and
expense risk fees... 22 354 82 7 86 48 2 2 18 4 25
Other operating
expenses............ 3 1 1 1
--------------------------------------------------------------------------------------------------
Total Expenses........ 22 357 83 7 87 49 2 2 18 4 25
--------------------------------------------------------------------------------------------------
Net Investment
Income............... 58 4,023 890 38 1,142 529 17 9 14 25 349
--------------------------------------------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain
(loss) from security
transactions........ 1 2,339 195 1 550 376 (1) (7) 39 (6) 29
Net unrealized
appreciation
(depreciation)
on investments...... 4 944 (2,010) (77) 144 (369) (27) (1) 277 1 779
--------------------------------------------------------------------------------------------------
Net Realized and
Unrealized Gain
(Loss)
on Investments....... 5 3,283 (1,815) (76) 694 7 (28) (8) 316 (5) 808
--------------------------------------------------------------------------------------------------
NET INCREASE
(DECREASE) IN NET
ASSETS RESULTING
FROM OPERATIONS...... $63 $7,306 ($925) ($38) $1,836 $536 ($11) $1 $330 $20 $1,157
--------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
C-2
<PAGE>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED JUNE 30, 1999 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Variable Variable Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account Account Account Account Account
I II III IV VII IX X XI XII XIII XIV
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS
Net investment income.... $58 $4,023 $890 $38 $1,142 $529 $17 $9 $14 $25 $349
Net realized gain
(loss) from security
transactions............ 1 2,339 195 1 550 376 (1) (7) 39 (6) 29
Net unrealized
appreciation
(depreciation) on
investments............. 4 944 (2,010) (77) 144 (369) (27) (1) 277 1 779
-----------------------------------------------------------------------------------------------------
Net Increase
(Decrease) in Net
Assets Resulting
from Operations.......... 63 7,306 (925) (38) 1,836 536 (11) 1 330 20 1,157
-----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS FROM ACCOUNT
TRANSACTIONS
Transfers in............. 626 256 170 52 284 94 139 35 553 31 762
Transfers out............ (1,214) (4,997) (3,268) (74) (1,410) (1,365) (52) (118) (573) (183) (214)
-----------------------------------------------------------------------------------------------------
Net Increase
(Decrease) in Net
Assets Derived
from Account Transactions. (588) (4,741) (3,098) (22) (1,126) (1,271) 87 (83) (20) (152) 548
-----------------------------------------------------------------------------------------------------
NET INCREASE
(DECREASE) IN NET ASSETS. (525) 2,565 (4,023) (60) 710 (735) 76 (82) 310 (132) 1,705
-----------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Period...... 4,198 58,202 16,299 1,226 14,461 8,851 289 318 2,900 725 3,405
-----------------------------------------------------------------------------------------------------
End of Period............ $3,673 $60,767 $12,276 $1,166 $15,171 $8,116 $365 $236 $3,210 $593 $5,110
-----------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
C-3
<PAGE>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1998
(In thousands)
<TABLE>
<CAPTION>
Variable Variable Variable Variable Variable Variable Variable Variable Variable Variable Variable
Account Account Account Account Account Account Account Account Account Account Account
I II III IV VII IX X XI XII XIII XIV
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS
Net investment
income.................. $147 $3,147 $863 $73 $1,663 $958 $14 $26 $23 $56 $75
Net realized gain
(loss) from security
transactions............ 5 12,281 788 2 1,387 1,316 1 (16) 98 (12) 14
Net unrealized
appreciation
(depreciation) on
investments............. (5) 451 (331) 22 (17) (635) 4 (15) 457 (19) 1,025
-----------------------------------------------------------------------------------------------------
Net Increase
(Decrease) in Net
Assets Resulting
from Operations......... 147 15,879 1,320 97 3,033 1,639 19 (5) 578 25 1,114
-----------------------------------------------------------------------------------------------------
INCREASE
(DECREASE) IN NET ASSETS
FROM ACCOUNT TRANSACTIONS
Transfers in............ 3,034 240 674 139 958 457 189 215 1,955 230 1,273
Transfers out........... (3,070) (28,424) (8,700) (227) (5,809) (6,050) (112) (192) (1,178) (404) (628)
-----------------------------------------------------------------------------------------------------
Net Increase
(Decrease) in Net
Assets Derived from
Account Transactions.... (36) (28,184) (8,026) (88) (4,851) (5,593) 77 23 777 (174) 645
-----------------------------------------------------------------------------------------------------
NET INCREASE
(DECREASE) IN NET ASSETS. 111 (12,305) (6,706) 9 (1,818) (3,954) 96 18 1,355 (149) 1,759
-----------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Year........ 4,087 70,507 23,005 1,217 16,279 12,805 193 300 1,545 874 1,646
-----------------------------------------------------------------------------------------------------
End of Year.............. $4,198 $58,202 $16,299 $1,226 $14,461 $8,851 $289 $318 $2,900 $725 $3,405
-----------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
C-4
<PAGE>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. ORGANIZATION
Pacific Corinthian Variable Separate Account (the "Separate Account") of
Pacific Life Insurance Company ("Pacific Life") is a separate investment
account originally established by a resolution of the Board of Directors of
Pacific Corinthian Life Insurance Company ("PCL").
PCL, formerly a wholly-owned subsidiary of Pacific Life, was a stock life
insurance company organized under the laws of the State of California.
PCL was formed to rehabilitate the business of First Capital Life Insurance
Company ("FCL") under a five year rehabilitation plan ("the Plan"). Under the
terms of the Plan, FCL's insurance policies in force, primarily individual
annuities and universal life insurance, were restructured and assumed by PCL on
December 31, 1992, pursuant to an assumption reinsurance agreement and asset
purchase agreement. On September 30, 1997, PCL completed the Plan of FCL. On
October 30, 1997, PCL was merged into Pacific Life, with Pacific Life as the
surviving entity. The Separate Account remained intact and became a Separate
Account of Pacific Life.
The Separate Account held by Pacific Life represents funds from individual
flexible premium deferred annuity and variable accumulation contracts. The
assets of the Separate Account are carried at market value.
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"). The assets in each Variable Account are invested in
shares of the corresponding portfolios of Pacific Select Fund (the "Fund") as
follows:
<TABLE>
<CAPTION>
Portfolios
----------
<C> <S>
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>
Each Variable Account pursues different investment objectives and policies.
The financial statements of the Fund, including the schedules of investments,
are included in Section B of this report and should be read in conjunction with
the Separate Account's financial statements.
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. Valuation of Investments
Investments in shares of the Fund are valued at the reported net asset values
of the respective portfolios. Valuation of securities held by the Fund is
discussed in the notes to its financial statements.
B. Security Transactions
Transactions are recorded on the trade date. Realized gains and losses on
sales of investments are determined on the basis of identified cost.
C. Federal Income Taxes
The operations of the Separate Account will be reported on the Federal income
tax return of Pacific Life, which is taxed as a life insurance company under
the provisions of the Tax Reform Act of 1986. Under current tax law, no Federal
income taxes are expected to be paid by Pacific Life with respect to the
operations of the Separate Account.
3. DIVIDENDS
During the six months period ended June 30, 1999, the Fund declared dividends
for each portfolio invested by the Separate Account. The amounts accrued by the
Separate Account for its share of the dividends were reinvested in additional
full and fractional shares of the related portfolio.
4. 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
and is apportioned equally among the Accounts to which the Contract Value is
allocated.
Mortality and expense risks assumed by Pacific Life are compensated for 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 Pacific Life's guarantee that such expenses will not exceed 0.25% of
each Variable Account's average daily net assets annually. Pacific Life further
guarantees that the ordinary operating
C-5
<PAGE>
PACIFIC CORINTHIAN VARIABLE SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
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 stated 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.
5. RELATED PARTY AGREEMENT
Pacific Mutual Distributors, Inc., a wholly-owned subsidiary of Pacific Life,
serves as principal underwriter of variable annuity contracts funded by
interests in the Separate Account, without remuneration from the Separate
Account.
6. SELECTED ACCUMULATION UNIT**
INFORMATION
Selected accumulation unit information for the period ended June 30, 1999 were
as follows:
<TABLE>
<CAPTION>
------------
Accumulation
Unit Value
- -------------------------------------------------------------------------------------------
Number of
At Units
Begin- At Outstanding
Variable ning of End of at End of
Accounts Period Period Period
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
I $1.969 $2.002 1,834,591
- -------------------------------------------------------------------------------------------
II 7.828 8.837 6,876,824
- -------------------------------------------------------------------------------------------
III 4.800 4.497 2,729,623
- -------------------------------------------------------------------------------------------
IV 2.142 2.077 561,427
- -------------------------------------------------------------------------------------------
VII 3.201 3.624 4,186,464
- -------------------------------------------------------------------------------------------
IX 2.574 2.747 2,954,217
- -------------------------------------------------------------------------------------------
X 1.409 1.367 267,294
- -------------------------------------------------------------------------------------------
XI 1.386 1.389 170,083
- -------------------------------------------------------------------------------------------
XII 2.688 2.995 1,071,682
- -------------------------------------------------------------------------------------------
XIII 1.496 1.552 382,330
- -------------------------------------------------------------------------------------------
XIV 2.607 3.462 1,476,006
</TABLE>
** Accumulation Unit: unit of measure used to calculate the value of a Contract
Owner's interest in a Variable Account during the Accumulation Period.
C-6
