<PAGE>
NWNL'S
SELECT*LIFE VARIABLE ACCOUNT
ANNUAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 1995
[LOGO]
This report provides information to Northwestern National Life Insurance
Company's Select*Life Policy Owners. If it is used for any other purpose, it
must be accompanied or preceded by a current NWNL Select*Life Variable Account
Prospectus which discloses any charges and other important information about the
Account, together with the current Prospectuses for Northstar, Fidelity's
Variable Insurance Products Fund (VIPF), Variable Insurance Products Fund II
(VIPF II) and the Putnam Capital Manager Trust (PCM).
<PAGE>
INDEPENDENT AUDITOR'S REPORT
Board of Directors
Northwestern National Life Insurance
Company and Policyowners of
Select*Life Variable Account:
We have audited the accompanying statement of assets and liabilities of
Select*Life Variable Account as of December 31, 1995 and the related combined
statements of operations and changes in Policyowners' equity for each of the
three years in the period ended December 31, 1995. These financial statements
are the responsibility of the management of Northwestern National Life Insurance
Company. Our responsibility is to express an opinion on these financial
statements based on our audits.
We have conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures include
confirmation of the securities owned as of December 31, 1995, by correspondence
with the Account custodians. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Select*Life Variable Account as
of December 31, 1995, and the results of its operations and changes in
Policyowners' equity for each of the three years in the period ended December
31, 1995, in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Minneapolis, Minnesota
February 2, 1996
i
<PAGE>
SELECT*LIFE VARIABLE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
(In Thousands, Except Share and Unit Data)
<TABLE>
<CAPTION>
FIDELITY'S FIDELITY'S
SELECT SELECT VIPF VIPF
CAPITAL GROWTH MANAGED MONEY MARKET HIGH INCOME
ASSETS: FUND, INC. FUND, INC. PORTFOLIO PORTFOLIO
- ------------------------------ --------------- ------------ -------------- --------------
<S> <C> <C> <C> <C>
Investments in mutual funds at
market value:
NORTHWESTERN'S:
Select Capital Growth Fund,
Inc.
0 shares (cost $-) $-
Select Managed Fund, Inc.
0 shares (cost $-) $-
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
5,706,539 shares (cost
$5,707) $5,707
High Income Portfolio
878,558 shares (cost
$9,623) $10,587
Equity-Income Portfolio
2,198,284 shares (cost
$31,597)
Growth Portfolio
1,896,779 shares (cost
$40,243)
Overseas Portfolio
988,644 shares (cost
$15,239)
Asset Manager Portfolio
1,460,592 shares (cost
$20,850)
Investment Grade Bond
Portfolio
222,308 shares (cost
$2,561)
Index 500 Portfolio
33,823 shares (cost $2,167)
Contrafund Portfolio
141,923 shares (cost
$1,927)
PUTNAM'S PCM:
Diversified Income Fund
73,078 shares (cost $744)
Growth and Income Fund
179,987 shares (cost
$3,335)
Utilities Growth and Income
Fund
76,470 shares (cost $861)
Voyager Fund
367,618 shares (cost
$9,195)
Asia Pacific Growth Fund
29,431 shares (cost $293)
New Opportunities Fund
94,932 shares (cost $1,364)
NORTHSTAR'S:
Income and Growth Fund
9,357 shares (cost $106)
Multi-Sector Bond Fund
22,244 shares (cost $114)
--------------- ------------ -------------- --------------
Total Assets $- $- $5,707 $10,587
--------------- ------------ -------------- --------------
--------------- ------------ -------------- --------------
LIABILITIES AND POLICYOWNERS'
EQUITY:
- ------------------------------
Due to (from) Northwestern
National Life Insurance
Company for accrued
mortality and expense risk: $- $- $3 $9
Policyowners' Equity: - - 5,704 10,578
--------------- ------------ -------------- --------------
Total Liabilities and
Policyowners' Equity $- $- $5,707 $10,587
--------------- ------------ -------------- --------------
--------------- ------------ -------------- --------------
Units Outstanding: - - 454,516.667 577,083.123
Net Asset Value per Unit:
Select*Life I $- $- $15.196421 $22.685998
Select*Life Series 2000 $- $- $11.033285 $11.775682
</TABLE>
The accompanying notes are an integral part of the financial statements.
ii
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES, CONTINUED
<TABLE>
<CAPTION>
FIDELITY'S VIPF
FIDELITY'S FIDELITY'S FIDELITY'S FIDELITY'S VIPF II
VIPF VIPF VIPF II INVESTMENT
EQUITY-INCOME GROWTH OVERSEAS ASSET MANAGER GRADE BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- -------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
Investments in mutual funds at
market value:
NORTHWESTERN'S:
Select Capital Growth Fund,
Inc.
0 shares (cost $-)
Select Managed Fund, Inc.
0 shares (cost $-)
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
5,706,539 shares (cost
$5,707)
High Income Portfolio
878,558 shares (cost
$9,623)
Equity-Income Portfolio
2,198,284 shares (cost
$31,597) $42,361
Growth Portfolio
1,896,779 shares (cost
$40,243) $55,386
Overseas Portfolio
988,644 shares (cost
$15,239) $16,856
Asset Manager Portfolio
1,460,592 shares (cost
$20,850) $23,063
Investment Grade Bond
Portfolio
222,308 shares (cost
$2,561) $2,774
Index 500 Portfolio
33,823 shares (cost $2,167)
Contrafund Portfolio
141,923 shares (cost
$1,927)
PUTNAM'S PCM:
Diversified Income Fund
73,078 shares (cost $744)
Growth and Income Fund
179,987 shares (cost
$3,335)
Utilities Growth and Income
Fund
76,470 shares (cost $861)
Voyager Fund
367,618 shares (cost
$9,195)
Asia Pacific Growth Fund
29,431 shares (cost $293)
New Opportunities Fund
94,932 shares (cost $1,364)
NORTHSTAR'S:
Income and Growth Fund
9,357 shares (cost $106)
Multi-Sector Bond Fund
22,244 shares (cost $114)
-------------- -------------- -------------- ----------------- -----------------
Total Assets $42,361 $55,386 $16,856 $23,063 $2,774
-------------- -------------- -------------- ----------------- -----------------
-------------- -------------- -------------- ----------------- -----------------
LIABILITIES AND POLICYOWNERS'
EQUITY:
- ------------------------------
Due to (from) Northwestern
National Life Insurance
Company for accrued
mortality and expense risk: $26 $32 $8 $13 $1
Policyowners' Equity: 42,335 55,354 16,848 23,050 2,773
-------------- -------------- -------------- ----------------- -----------------
Total Liabilities and
Policyowners' Equity $42,361 $55,386 $16,856 $23,063 $2,774
-------------- -------------- -------------- ----------------- -----------------
-------------- -------------- -------------- ----------------- -----------------
Units Outstanding: 2,023,713.030 2,622,289.757 1,229,928.330 1,704,151.254 214,771.624
Net Asset Value per Unit:
Select*Life I $24.335487 $25.923659 $16.146219 $15.635834 $14.301995
Select*Life Series 2000 $14.398497 $13.528025 $11.056847 $10.905448 $11.271917
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF
II II
INDEX 500 CONTRAFUND
PORTFOLIO PORTFOLIO
----------------- -----------------
<S> <C> <C>
Investments in mutual funds at
market value:
NORTHWESTERN'S:
Select Capital Growth Fund,
Inc.
0 shares (cost $-)
Select Managed Fund, Inc.
0 shares (cost $-)
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
5,706,539 shares (cost
$5,707)
High Income Portfolio
878,558 shares (cost
$9,623)
Equity-Income Portfolio
2,198,284 shares (cost
$31,597)
Growth Portfolio
1,896,779 shares (cost
$40,243)
Overseas Portfolio
988,644 shares (cost
$15,239)
Asset Manager Portfolio
1,460,592 shares (cost
$20,850)
Investment Grade Bond
Portfolio
222,308 shares (cost
$2,561)
Index 500 Portfolio
33,823 shares (cost $2,167) $2,561
Contrafund Portfolio
141,923 shares (cost
$1,927) $1,956
PUTNAM'S PCM:
Diversified Income Fund
73,078 shares (cost $744)
Growth and Income Fund
179,987 shares (cost
$3,335)
Utilities Growth and Income
Fund
76,470 shares (cost $861)
Voyager Fund
367,618 shares (cost
$9,195)
Asia Pacific Growth Fund
29,431 shares (cost $293)
New Opportunities Fund
94,932 shares (cost $1,364)
NORTHSTAR'S:
Income and Growth Fund
9,357 shares (cost $106)
Multi-Sector Bond Fund
22,244 shares (cost $114)
----------------- -----------------
Total Assets $2,561 $1,956
----------------- -----------------
----------------- -----------------
LIABILITIES AND POLICYOWNERS'
EQUITY:
- ------------------------------
Due to (from) Northwestern
National Life Insurance
Company for accrued
mortality and expense risk: $4 $-
Policyowners' Equity: 2,557 1,956
----------------- -----------------
Total Liabilities and
Policyowners' Equity $2,561 $1,956
----------------- -----------------
----------------- -----------------
Units Outstanding: 181,509.017 160,147.180
Net Asset Value per Unit:
Select*Life I $14.548311 $-
Select*Life Series 2000 $13.834477 $12.215088
</TABLE>
The accompanying notes are an integral part of the financial statements.
iii
<PAGE>
SELECT*LIFE VARIABLE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES, Continued
December 31, 1995
(In Thousands, Except Share and Unit Data)
<TABLE>
<CAPTION>
PUTNAM'S PCM
PUTNAM'S PCM PUTNAM'S PCM UTILITIES
DIVERSIFIED GROWTH AND GROWTH PUTNAM'S PCM
INCOME INCOME AND INCOME VOYAGER
ASSETS: FUND FUND FUND FUND
- ------------------------------ --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Investments in mutual funds at
market value:
NORTHWESTERN'S:
Select Capital Growth Fund,
Inc.
0 shares (cost $-)
Select Managed Fund, Inc.
0 shares (cost $-)
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
5,706,539 shares (cost
$5,707)
High Income Portfolio
878,558 shares (cost
$9,623)
Equity-Income Portfolio
2,198,284 shares (cost
$31,597)
Growth Portfolio
1,896,779 shares (cost
$40,243)
Overseas Portfolio
988,644 shares (cost
$15,239)
Asset Manager Portfolio
1,460,592 shares (cost
$20,850)
Investment Grade Bond
Portfolio
222,308 shares (cost
$2,561)
Index 500 Portfolio
33,823 shares (cost $2,167)
Contrafund Portfolio
141,923 shares (cost
$1,927)
PUTNAM'S PCM:
Diversified Income Fund
73,078 shares (cost $744) $806
Growth and Income Fund
179,987 shares (cost
$3,335) $3,864
Utilities Growth and Income
Fund
76,470 shares (cost $861) $1,015
Voyager Fund
367,618 shares (cost
$9,195) $11,212
Asia Pacific Growth Fund
29,431 shares (cost $293)
New Opportunities Fund
94,932 shares (cost $1,364)
NORTHSTAR'S:
Income and Growth Fund
9,357 shares (cost $106)
Multi-Sector Bond Fund
22,244 shares (cost $114)
--------------- --------------- --------------- ---------------
Total Assets $806 $3,864 $1,015 $11,212
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
LIABILITIES AND POLICYOWNERS'
EQUITY:
- ------------------------------
Due to (from) Northwestern
National Life Insurance
Company for accrued
mortality and expense risks: $- $- $- $2
Policyowners' Equity: 806 3,864 1,015 11,210
--------------- --------------- --------------- ---------------
Total Liabilities and
Policyowners' Equity $806 $3,864 $1,015 $11,212
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
Units Outstanding: 70,401.445 282,045.753 81,748.531 781,013.273
Net Asset Value per Unit:
Select*Life I $11.671211 $13.783753 $12.696559 $14.653218
Select*Life Series 2000 $11.375328 $13.687901 $12.342637 $14.315742
</TABLE>
The accompanying notes are an integral part of the financial statements.
iv
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES, CONTINUED
<TABLE>
<CAPTION>
PUTNAM'S PCM PUTNAM'S PCM NORTHSTAR'S
ASIA PACIFIC NEW INCOME NORTHSTAR'S
GROWTH OPPORTUNITIES AND GROWTH MULTI-SECTOR BOND
FUND FUND FUND FUND TOTAL
--------------- --------------- ------------ ------------------ ---------------
<S> <C> <C> <C> <C> <C>
Investments in mutual funds at
market value:
NORTHWESTERN'S:
Select Capital Growth Fund,
Inc.
0 shares (cost $-) $-
Select Managed Fund, Inc.
0 shares (cost $-) -
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
5,706,539 shares (cost
$5,707) 5,707
High Income Portfolio
878,558 shares (cost
$9,623) 10,587
Equity-Income Portfolio
2,198,284 shares (cost
$31,597) 42,361
Growth Portfolio
1,896,779 shares (cost
$40,243) 55,386
Overseas Portfolio
988,644 shares (cost
$15,239) 16,856
Asset Manager Portfolio
1,460,592 shares (cost
$20,850) 23,063
Investment Grade Bond
Portfolio
222,308 shares (cost
$2,561) 2,774
Index 500 Portfolio
33,823 shares (cost $2,167) 2,561
Contrafund Portfolio
141,923 shares (cost
$1,927) 1,956
PUTNAM'S PCM:
Diversified Income Fund
73,078 shares (cost $744) 806
Growth and Income Fund
179,987 shares (cost
$3,335) 3,864
Utilities Growth and Income
Fund
76,470 shares (cost $861) 1,015
Voyager Fund
367,618 shares (cost
$9,195) 11,212
Asia Pacific Growth Fund
29,431 shares (cost $293) $301 301
New Opportunities Fund
94,932 shares (cost $1,364) $1,484 1,484
NORTHSTAR'S:
Income and Growth Fund
9,357 shares (cost $106) $107 107
Multi-Sector Bond Fund
22,244 shares (cost $114) $114 114
--------------- --------------- ------------ ------------------ ---------------
Total Assets $301 $1,484 $107 $114 $180,154
--------------- --------------- ------------ ------------------ ---------------
--------------- --------------- ------------ ------------------ ---------------
LIABILITIES AND POLICYOWNERS'
EQUITY:
- ------------------------------
Due to (from) Northwestern
National Life Insurance
Company for accrued
mortality and expense risks: $- $(1) $- $- $97
Policyowners' Equity: 301 1,485 107 114 180,057
--------------- --------------- ------------ ------------------ ---------------
Total Liabilities and
Policyowners' Equity $301 $1,484 $107 $114 $180,154
--------------- --------------- ------------ ------------------ ---------------
--------------- --------------- ------------ ------------------ ---------------
Units Outstanding: 29,436.771 110,223.166 8,746.326 9,904.096 10,541,629.343
Net Asset Value per Unit:
Select*Life I $- $- $- $-
Select*Life Series 2000 $10.230000 $13.474132 $12.188280 $11.545303
</TABLE>
The accompanying notes are an integral part of the financial statements.
v
<PAGE>
SELECT*LIFE VARIABLE ACCOUNT
STATEMENT OF OPERATIONS AND CHANGES
IN POLICYOWNERS' EQUITY
(In Thousands)
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1993
------------- ------------- -------------
<S> <C> <C> <C>
Net investment income:
Reinvested dividend income..................................................... $2,259 $1,454 $1,145
Reinvested capital gains....................................................... 1,456 2,880 417
Mortality and expense risk charge.............................................. (1,186) (692) (421)
------------- ------------- -------------
Net investment income and capital gains...................................... 2,529 3,642 1,141
------------- ------------- -------------
Realized and unrealized gains:
Net realized gains on redemptions of fund shares............................... 1,345 896 372
Increase (decrease) in unrealized appreciation of investments.................. 27,857 (4,458) 6,621
------------- ------------- -------------
Net realized and unrealized gains (losses)................................... 29,202 (3,562) 6,993
------------- ------------- -------------
Additions from operations.................................................. 31,731 80 8,134
------------- ------------- -------------
Policyowner transactions:
Net premium payments........................................................... 66,506 49,268 27,248
Transfers (to) from Fixed Accounts............................................. (401) (35) 48
Policy loans................................................................... (1,582) (781) (596)
Loan collateral interest crediting............................................. 101 69 45
Surrenders..................................................................... (3,576) (2,080) (1,351)
Death benefits................................................................. (220) (87) (42)
Cost of insurance charges...................................................... (12,860) (8,762) (5,120)
Death benefit guarantee charges................................................ (488) (531) (402)
Monthly expense charges........................................................ (1,831) (1,057) (583)
------------- ------------- -------------
Additions for policyowner transactions....................................... 45,649 36,004 19,247
------------- ------------- -------------
Net additions for the year................................................. 77,380 36,084 27,381
Policyowners' Equity, beginning of the year...................................... 102,677 66,593 39,212
------------- ------------- -------------
Policyowners' Equity, end of the year............................................ $180,057 $102,677 $66,593
------------- ------------- -------------
------------- ------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
vi
<PAGE>
SELECT*LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ORGANIZATION AND CONTRACTS:
NWNL Select*Life Variable Account (the "Account") is a separate account of
Northwestern National Life Insurance Company ("NWNL" or "Northwestern"), a
wholly owned subsidiary of ReliaStar Financial Corp (formerly The NWNL
Companies, Inc.). The Account is registered as a unit investment trust under
the Investment Company Act of 1940.
Payments received under the contracts are allocated to Sub-Accounts of the
Account, each of which invested in one of the Funds listed below during the
year (see note 4):
<TABLE>
<CAPTION>
FIDELITY'S VIPF AND VIPF II: PUTNAM'S PCM: NORTHSTAR FUNDS:
- ------------------------------------------ ------------------------------------------ ------------------------------------------
<S> <C> <C>
Money Market Portfolio Diversified Income Fund Income and Growth Fund
High Income Portfolio Growth and Income Fund Multi-Sector Bond Fund
Equity-Income Portfolio Utilities Growth and Income Fund
Growth Portfolio Voyager Fund
Overseas Portfolio Asia Pacific Growth Fund
Asset Manager Portfolio New Opportunities Fund
Investment Grade Bond Portfolio
Index 500 Portfolio
Contrafund Portfolio
</TABLE>
Northstar Investment Management Corporation, an affiliate of NWNL, is the
investment adviser for the two Northstar Funds and is paid fees for its
services by the Northstar Funds. Fidelity Management & Research Company is the
investment adviser for Fidelity's VIPF and VIPF II and is paid for its
services by the VIPF and VIPF II Portfolios. Putnam Investment Management,
Inc. is the investment adviser for the PCM Funds and is paid fees for its
services by the PCM Funds. On May 3, 1993, NWNL added the Sub-Account
investing in the VIPF II Index 500 Portfolio. On January 1, 1994, Sub-Accounts
investing in PCM's Diversified Income Fund, Growth and Income Fund, Utilities
Growth and Income Fund and Voyager Fund were made available through the
Select*Life Series 2000 policies and on May 2, 1994, Sub-Accounts investing in
these PCM Funds were made available to Select*Life I policies. On December 30,
1994, Sub-Accounts investing in the Northstar Funds were made available to
Select*Life Series 2000 policies. On April 30, 1995 Sub-Accounts investing in
the VIPF II Contrafund Portfolio, the PCM Asia Pacific Growth Fund and the PCM
New Opportunities Fund were made available to Select*Life Series 2000
policies.
SECURITIES VALUATION AND TRANSACTIONS:
The market value of investments in the Sub-Accounts is based on the closing
net asset values of the Fund shares held at the end of the period. Investment
transactions are accounted for on the trade date (date the order to purchase
or redeem is executed) and dividend income and capital distributions is
recorded on the ex-dividend date. Net realized gains and losses on redemptions
of shares of the Funds are determined on the basis of specific identification
of Fund's share costs. Net investment income and realized and unrealized gain
(loss) on investments of each Sub-Account are allocated to the Policies on
each valuation date based on each policy's pro-rata share of the net assets of
each Sub-Account as of the beginning of the valuation period.
2. FEDERAL INCOME TAXES:
Under current tax law, the income, gains and losses from the separate account
investments are not taxable to either the Account or NWNL.
3. POLICY CHARGES:
Certain charges are made by NWNL to Policyowners' Variable Accumulation Values
in the Account in accordance with the terms of the Policies. These charges may
include: Cost of Insurance, computed as set forth in the Policies; a Monthly
Expense Charge as set forth in the Policies: Death Benefit Guarantee Charge;
Optional Insurance benefit charges based upon the policy terms for optional
benefits; and Surrender Charges and Sales Charge Refunds, as set forth in the
Policies.
NWNL assumes mortality and expense risks and, to cover these risks, deducts
charges in accordance with the terms of the policies from the assets of the
Account to compensate for these expenses and risks.
4. NORTHWESTERN'S SELECT FUNDS:
On May 1, 1995, Select Capital Growth Fund, Inc. ("SCG") and Select Managed
Fund, Inc. ("SMF") were liquidated, and Policy Owners' values in the
Sub-Accounts investing in SCG and SMF were transferred to the Sub-Accounts
investing in shares of the VIPF Growth Portfolio and VIPF II Asset Manager
Portfolio, respectively.
vii
<PAGE>
SELECT*LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
5. INVESTMENTS:
The net realized gains (losses) on redemptions of fund shares during the
years ended December 31, 1995, 1994 and 1993 were as follows, (in thousands):
<TABLE>
<CAPTION>
SELECT
CAPITAL GROWTH
TOTAL FUND, INC.
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.......... $18,128 $7,424 $3,665 $2,470 $347 $389
Cost............................... 16,783 6,528 3,293 2,608 385 413
------------- ------------- ------------- ------------- ------------- -------------
Net realized gains (losses) on
redemptions of fund shares....... $1,345 $896 $372 $(138) $(38) $(24)
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF
HIGH INCOME EQUITY-INCOME
PORTFOLIO PORTFOLIO
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.......... $1,149 $551 $453 $1,111 $1,079 $247
Cost............................... 947 407 343 821 877 194
------------- ------------- ------------- ------------- ------------- -------------
Net realized gains (losses) on
redemptions of fund shares....... $202 $144 $110 $290 $202 $53
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
FIDELITY'S VIPF II FIDELITY'S VIPF II
ASSET MANAGER INVESTMENT GRADE
PORTFOLIO BOND PORTFOLIO
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.......... $2,494 $941 $107 $329 $247 $104
Cost............................... 2,326 839 91 327 254 95
------------- ------------- ------------- ------------- ------------- -------------
Net realized gains (losses) on
redemptions of fund shares....... $168 $102 $16 $2 $(7) $9
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
viii
<PAGE>
SELECT*LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
SELECT FIDELITY'S VIPF
MANAGED MONEY MARKET
FUND, INC. PORTFOLIO
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.......... $4,660 $820 $951 $2,499 $1,572 $850
Cost............................... 4,677 741 857 2,499 1572 850
------------- ------------- ------------- ------------- ------------- -------------
Net realized gains (losses) on
redemptions of fund shares....... $(17) $79 $94 $- $- $-
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF
GROWTH OVERSEAS
PORTFOLIO PORTFOLIO
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.......... $967 $1,007 $329 $1,486 $729 $193
Cost............................... 538 717 214 1,219 606 195
------------- ------------- ------------- ------------- ------------- -------------
Net realized gains (losses) on
redemptions of fund shares....... $429 $290 $115 $267 $123 $(2)
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
FIDELITY'S VIPF II FIDELITY'S VIPF II
INDEX 500 CONTRAFUND
PORTFOLIO PORTFOLIO
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.......... $208 $53 $42 $92 $- $-
Cost............................... 168 53 41 79 - -
------------- ------------- ------------- ------------- ------------- -------------
Net realized gains (losses) on
redemptions of fund shares....... $40 $- $1 $13 $- $-
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
ix
<PAGE>
SELECT*LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
5. INVESTMENTS (CONTINUED):
The net realized gains (losses) on redemptions of fund shares during the
years ended December 31, 1995, 1994 and 1993 were as follows, (in thousands):
<TABLE>
<CAPTION>
PUTNAM'S PCM PUTNAM'S PCM
DIVERSIFIED INCOME GROWTH AND INCOME
FUND FUND
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.......... $40 $9 $- $102 $7 $-
Cost............................... 38 9 - 85 7 -
------------- ------------- ------------- ------------- ------------- -------------
Net realized gains (losses) on
redemptions of fund shares....... $2 $- $- $17 $- $-
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
PUTNAM'S PCM PUTNAM'S PCM
ASIA PACIFIC NEW OPPORTUNITIES
GROWTH FUND FUND
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.......... $23 $- $- $113 $- $-
Cost............................... 23 - - 91 - -
------------- ------------- ------------- ------------- ------------- -------------
Net realized gains (losses) on
redemptions of fund shares....... $- $- $- $22 $- $-
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
x
<PAGE>
SELECT*LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PUTNAM'S PCM PUTNAM'S PCM
UTILITIES GROWTH AND INCOME VOYAGER
FUND FUND
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.......... $184 $49 $- $154 $13 $-
Cost............................... 164 48 - 126 13 -
------------- ------------- ------------- ------------- ------------- -------------
Net realized gains (losses) on
redemptions of fund shares....... $20 $1 $- $28 $- $-
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
NORTHSTAR'S NORTHSTAR'S
INCOME AND GROWTH MULTI-SECTOR BOND
FUND FUND
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions.......... $3 $- $- $44 $- $-
Cost............................... 3 - - 44 - -
------------- ------------- ------------- ------------- ------------- -------------
Net realized gains (losses) on
redemptions of fund shares....... $- $- $- $- $- $-
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
xi
<PAGE>
SELECT*LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
6. POLICYOWNERS' TRANSACTIONS:
Unit transactions in each Sub-Account for the years ended December 31, 1995,
1994 and 1993 were as follows:
<TABLE>
<CAPTION>
SELECT
CAPITAL SELECT
GROWTH MANAGED
FUND, INC. FUND, INC.
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year................ 157,399.779 162,138.780 167,471.597 286,168.977 311,725.041 330,827.372
Units purchased.................... 9,126.623 27,211.524 35,065.805 12,895.412 43,556.351 66,936.131
Units redeemed..................... (7,913.917) (21,989.106) (24,409.857) (10,403.233) (46,804.601) (43,441.272)
Units transferred between
Sub-Accounts and/or
Fixed Account.................... (158,612.485) (9,961.419) (15,988.765) (288,661.156) (22,307.814) (42,597.190)
------------- ------------- ------------- ------------- ------------- -------------
Units outstanding,
end of year...................... - 157,399.779 162,138.780 - 286,168.977 311,725.041
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF
GROWTH OVERSEAS
PORTFOLIO PORTFOLIO
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year................ 1,761,649.810 1,096,817.909 753,498.577 900,424.038 379,052.212 211,691.220
Units purchased.................... 1,030,790.587 953,158.878 496,602.667 617,148.362 556,399.917 175,560.984
Units redeemed..................... (342,106.549) (244,337.361) (162,473.724) (177,939.623) (111,750.664) (44,967.546)
Units transferred between
Sub-Accounts and/or
Fixed Account.................... 171,955.909 (43,989.616) 9,190.389 (109,704.447) 76,722.573 36,767.554
------------- ------------- ------------- ------------- ------------- -------------
Units outstanding,
end of year...................... 2,622,289.757 1,761,649.810 1,096,817.909 1,229,928.330 900,424.038 379,052.212
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
xii
<PAGE>
SELECT*LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF
MONEY MARKET HIGH INCOME
PORTFOLIO PORTFOLIO
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year................ 240,089.964 156,045.604 152,805.620 397,251.963 254,797.519 161,227.749
Units purchased.................... 409,244.895 165,487.964 69,682.856 262,813.321 211,773.478 130,562.696
Units redeemed..................... (51,202.041) (28,807.773) (20,926.325) (82,813.141) (56,358.865) (33,540.569)
Units transferred between
Sub-Accounts and/or
Fixed Account.................... (143,616.151) (52,635.831) (45,516.547) (169.020) (12,960.169) (3,452.357)
------------- ------------- ------------- ------------- ------------- -------------
Units outstanding,
end of year...................... 454,516.667 240,089.964 156,045.604 577,083.123 397,251.963 254,797.519
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
<CAPTION>
FIDELITY'S VIPF
EQUITY-INCOME
PORTFOLIO
-------------------------------------------
Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993
------------- ------------- -------------
<S> <C> <C> <C>
Units outstanding,
beginning of year................ 1,463,010.155 1,055,644.747 771,398.437
Units purchased.................... 749,089.473 601,244.662 401,078.064
Units redeemed..................... (256,323.181) (192,736.128) (135,688.853)
Units transferred between
Sub-Accounts and/or
Fixed Account.................... 67,936.583 (1,143.126) 18,857.099
------------- ------------- -------------
Units outstanding,
end of year...................... 2,023,713.030 1,463,010.155 1,055,644.747
------------- ------------- -------------
------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
FIDELITY'S VIPF II FIDELITY'S VIPF II
ASSET MANAGER INVESTMENT GRADE
PORTFOLIO BOND PORTFOLIO
----------------------------------------------- ------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
--------------- --------------- ------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year................ 1,132,373.018 397,491.821 97,757.370 153,890.893 73,061.118 24,463.839
Units purchased.................... 711,584.303 860,156.216 298,692.189 89,695.793 93,970.791 52,917.549
Units redeemed..................... (245,931.324) (135,570.699) (44,480.151) (25,144.781) (15,634.489) (7,850.519)
Units transferred between
Sub-Accounts and/or
Fixed Account.................... 106,125.257 10,295.680 45,522.413 (3,670.281) 2,493.473 3,530.249
--------------- --------------- ------------- ------------- ------------- ------------
Units outstanding,
end of year...................... 1,704,151.254 1,132,373.018 397,491.821 214,771.624 153,890.893 73,061.118
--------------- --------------- ------------- ------------- ------------- ------------
--------------- --------------- ------------- ------------- ------------- ------------
<CAPTION>
FIDELITY'S VIPF II
INDEX 500
PORTFOLIO
-----------------------------------------
Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993
------------- ------------ ------------
<S> <C> <C> <C>
Units outstanding,
beginning of year................ 70,686.713 23,356.992 -
Units purchased.................... 108,548.505 53,563.087 22,259.709
Units redeemed..................... (20,962.032) (8,321.224) (1,097.320)
Units transferred between
Sub-Accounts and/or
Fixed Account.................... 23,235.831 2,087.858 2,194.603
------------- ------------ ------------
Units outstanding,
end of year...................... 181,509.017 70,686.713 23,356.992
------------- ------------ ------------
------------- ------------ ------------
</TABLE>
xiii
<PAGE>
SELECT*LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
6. POLICYOWNERS' TRANSACTIONS (CONTINUED):
Unit transactions in each Sub-Account for the years ended December 31, 1995,
1994 and 1993 were as follows:
<TABLE>
<CAPTION>
FIDELITY'S VIPF II PUTNAM'S PCM
CONTRAFUND DIVERSIFIED INCOME
PORTFOLIO FUND
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year................ - - - 25,076.593 - -
Units purchased.................... 131,616.362 - - 37,489.819 18,122.626 -
Units reedeemed.................... (12,028.370) - - (7,437.939) (1,598.271) -
Units transferred between
Sub-Accounts and/or
Fixed Account.................... 40,559.188 - - 15,272.972 8,552.238 -
------------- ------------- ------------- ------------- ------------- -------------
Units outstanding,
end of year...................... 160,147.180 - - 70,401.445 25,076.593 -
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
PUTNAM'S PCM PUTNAM'S PCM
ASIA PACIFIC GROWTH NEW OPPORTUNITIES
FUND FUND
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year................ - - - - - -
Units purchased.................... 25,202.823 - - 86,605.419 - -
Units redeemed..................... (2,640.223) - - (8,233.093) - -
Units transferred between
Sub-Accounts and/or
Fixed Account.................... 6,874.171 - - 31,850.840 - -
------------- ------------- ------------- ------------- ------------- -------------
Units outstanding,
end of year...................... 29,436.771 - - 110,223.166 - -
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
xiv
<PAGE>
SELECT*LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PUTNAM'S PCM PUTNAM'S PCM
GROWTH AND INCOME UTILITIES GROWTH AND
FUND INCOME FUND
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year................ 64,421.965 - - 46,807.467 - -
Units purchased.................... 209,131.345 61,265.475 - 47,951.821 30,500.830 -
Units reedeemed.................... (32,341.113) (6,093.938) - (10,123.479) (3,408.255) -
Units transferred between
Sub-Accounts and/or
Fixed Account.................... 40,833.556 9,250.428 - (2,887.278) 19,714.892 -
------------- ------------- ------------- ------------- ------------- -------------
Units outstanding,
end of year...................... 282,045.753 64,421.965 - 81,748.531 46,807.467 -
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
<CAPTION>
PUTNAM'S PCM
VOYAGER
FUND
-------------------------------------------
Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993
------------- ------------- -------------
<S> <C> <C> <C>
Units outstanding,
beginning of year................ 199,880.663 - -
Units purchased.................... 611,602.541 191,562.886 -
Units reedeemed.................... (101,392.794) (18,498.061) -
Units transferred between
Sub-Accounts and/or
Fixed Account.................... 70,922.863 26,815.838 -
------------- ------------- -------------
Units outstanding,
end of year...................... 781,013.273 199,880.663 -
------------- ------------- -------------
------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
NORTHSTAR'S NORTHSTAR'S
INCOME AND GROWTH MULTI-SECTOR BOND
FUND FUND
------------------------------------------- -------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1995 1994 1993
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of year................ - - - - - -
Units purchased.................... 6,057.272 - - 3,255.666 - -
Units redeemed..................... (537.367) - - (424.093) - -
Units transferred between
Sub-Accounts and/or
Fixed Account.................... 3,226.421 - - 7,072.523 - -
------------- ------------- ------------- ------------- ------------- -------------
Units outstanding,
end of year...................... 8,746.326 - - 9,904.096 - -
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
xv
<PAGE>
SELECT*LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, Continued
7. COMBINING STATEMENT OF OPERATIONS AND CHANGES IN POLICYOWNERS' EQUITY:
Operations and changes in Policyowners' equity for the year ended December
31, 1995 were as follows, (in thousands):
<TABLE>
<CAPTION>
FIDELITY'S FIDELITY'S FIDELITY'S
SELECT VIPF VIPF VIPF FIDELITY'S
CAPITAL SELECT MONEY HIGH EQUITY- VIPF
GROWTH MANAGED MARKET INCOME INCOME GROWTH
TOTAL FUND, INC. FUND, INC. PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income:
Reinvested dividend
income..................... $2,259 $- $- $254 $514 $798 $172
Reinvested capital gains.... 1,456 - - - - 1,292 -
Mortality and expense risk
charge..................... (1,186) (6) (12) (41) (74) (276) (367)
--------- ---------- ---------- ---------- ---------- ---------- ----------
Net investment income
(loss)
and capital gains...... 2,529 (6) (12) 213 440 1,814 (195)
--------- ---------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gains
(losses):
Net realized gains (losses)
on redemptions of fund
shares..................... 1,345 (138) (17) - 202 290 429
Increase in unrealized
appreciation on
investments................ 27,857 217 170 - 906 7,526 11,788
--------- ---------- ---------- ---------- ---------- ---------- ----------
Net realized and
unrealized gains....... 29,202 79 153 - 1,108 7,816 12,217
--------- ---------- ---------- ---------- ---------- ---------- ----------
Net additions
from operations...... 31,731 73 141 213 1,548 9,630 12,022
--------- ---------- ---------- ---------- ---------- ---------- ----------
Policyowner transactions:
Net premium payments........ 66,506 123 188 4,498 3,599 11,299 15,747
Transfers (to) from Fixed
Account.................... (401) (2,420) (4,589) (1,606) 63 1,140 3,598
Policy loans................ (1,582) (5) (21) (28) (105) (592) (541)
Loan collateral interest
crediting.................. 101 2 5 5 6 26 34
Surrenders.................. (3,576) (45) (25) (99) (217) (893) (1,219)
Death benefits.............. (220) (1) - - (30) (60) (34)
Cost of insurance charges... (12,860) (53) (94) (423) (819) (2,545) (3,745)
Death benefit guarantee
charges.................... (488) (3) (5) (10) (36) (120) (179)
Monthly expense charges..... (1,831) (7) (13) (37) (99) (336) (536)
--------- ---------- ---------- ---------- ---------- ---------- ----------
Net additions
(reductions) for
policyowner
transactions........... 45,649 (2,409) (4,554) 2,300 2,362 7,919 13,125
--------- ---------- ---------- ---------- ---------- ---------- ----------
Net additions
(reductions)
for the year......... 77,380 (2,336) (4,413) 2,513 3,910 17,549 25,147
Policyowners' Equity,
beginning of the year....... 102,677 2,336 4,413 3,191 6,668 24,786 30,207
--------- ---------- ---------- ---------- ---------- ---------- ----------
Policyowners' Equity,
end of the year............. $180,057 $- $- $5,704 $10,578 $42,335 $55,354
--------- ---------- ---------- ---------- ---------- ---------- ----------
--------- ---------- ---------- ---------- ---------- ---------- ----------
</TABLE>
xvi
<PAGE>
SELECT*LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
FIDELITY'S
FIDELITY'S VIPF II PUTNAM'S PUTNAM'S
FIDELITY'S VIPF II INVESTMENT FIDELITY'S FIDELITY'S PCM PCM
VIPF ASSET GRADE VIPF II VIPF II DIVERSIFIED GROWTH AND
OVERSEAS MANAGER BOND INDEX 500 CONTRAFUND INCOME INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ----------- ---------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income:
Reinvested dividend
income..................... $48 $289 $65 $13 $8 $16 $32
Reinvested capital gains.... 49 - - 2 16 - 18
Mortality and expense risk
charge..................... (123) (159) (18) (13) (5) (4) (19)
---------- ---------- ----------- ---------- ----------- ---------- ------------
Net investment income
(loss)
and capital gains...... (26) 130 47 2 19 12 31
---------- ---------- ----------- ---------- ----------- ---------- ------------
Realized and unrealized gains
(losses):
Net realized gains (losses)
on redemptions of fund
shares..................... 267 168 2 40 13 2 17
Increase in unrealized
appreciation on
investments................ 1,073 2,652 273 390 29 63 529
---------- ---------- ----------- ---------- ----------- ---------- ------------
Net realized and
unrealized gains....... 1,340 2,820 275 430 42 65 546
---------- ---------- ----------- ---------- ----------- ---------- ------------
Net additions
from operations...... 1,314 2,950 322 432 61 77 577
---------- ---------- ----------- ---------- ----------- ---------- ------------
Policyowner transactions:
Net premium payments........ 7,140 7,749 983 1,343 1,567 391 2,526
Transfers (to) from Fixed
Account.................... (1,410) 1,972 (36) 295 466 172 490
Policy loans................ (132) (126) 23 (3) (2) (4) (10)
Loan collateral interest
crediting.................. 10 13 - - - - -
Surrenders.................. (357) (535) (53) (24) (1) (4) (13)
Death benefits.............. (27) (37) (15) (12) - (2) (2)
Cost of insurance charges... (1,417) (1,841) (187) (178) (114) (55) (296)
Death benefit guarantee
charges.................... (55) (65) (7) (3) - - (1)
Monthly expense charges..... (205) (242) (22) (30) (21) (9) (53)
---------- ---------- ----------- ---------- ----------- ---------- ------------
Net additions
(reductions) for
policyowner
transactions........... 3,547 6,888 686 1,388 1,895 489 2,641
---------- ---------- ----------- ---------- ----------- ---------- ------------
Net additions
(reductions)
for the year......... 4,861 9,838 1,008 1,820 1,956 566 3,218
Policyowners' Equity,
beginning of the year....... 11,987 13,212 1,765 737 - 240 646
---------- ---------- ----------- ---------- ----------- ---------- ------------
Policyowners' Equity,
end of the year............. $16,848 $23,050 $2,773 $2,557 $1,956 $806 $3,864
---------- ---------- ----------- ---------- ----------- ---------- ------------
---------- ---------- ----------- ---------- ----------- ---------- ------------
</TABLE>
xvii
<PAGE>
SELECT*LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
7. COMBINING STATEMENT OF OPERATIONS AND CHANGES IN POLICYOWNERS' EQUITY
(CONTINUED):
Operations and changes in Policyowners' equity for the year ended December
31, 1995 were as follows, (in thousands):
<TABLE>
<CAPTION>
PUTNAM'S
PUTNAM'S PCM PUTNAM'S
PCM PUTNAM'S ASIA PCM NORTHSTAR'S NORTHSTAR'S
UTILITIES GROWTH PCM PACIFIC NEW INCOME AND MULTI-SECTOR
AND INCOME VOYAGER GROWTH OPPORTUNITIES GROWTH BOND
FUND FUND FUND FUND FUND FUND
---------------- ----------- ----------- ------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income:
Reinvested dividend income................ $ 32 $ 10 $ - $ - $ 2 $ 6
Reinvested capital gains.................. - 77 - - 2 -
Mortality and expense risk charge......... (7) (56) (1) (4) - (1)
-------- ----------- ----------- ------------- ----------- ------------
Net investment income
(loss) and capital gains............. 25 31 (1) (4) 4 5
-------- ----------- ----------- ------------- ----------- ------------
Realized and unrealized gains:
Net realized gains on
redemptions of fund shares............... 20 28 - 22 - -
Increase in unrealized
appreciation on investments.............. 161 1,951 8 120 1 -
-------- ----------- ----------- ------------- ----------- ------------
Net realized and
unrealized gains..................... 181 1,979 8 142 1 -
-------- ----------- ----------- ------------- ----------- ------------
Net additions
from operations.................... 206 2,010 7 138 5 5
-------- ----------- ----------- ------------- ----------- ------------
Policyowner transactions:
Net premium payments...................... 505 7,418 251 1,072 71 36
Transfers (to) from Fixed Account......... (40) 947 68 375 37 77
Policy loans.............................. (1) (31) - (4) - -
Loan collateral interest crediting........ - - - - - -
Surrenders................................ (9) (81) - (1) - -
Death benefits............................ - - - - - -
Cost of insurance charges................. (80) (902) (22) (80) (5) (4)
Death benefit guarantee charges........... (1) (3) - - - -
Monthly expense charges................... (13) (189) (3) (15) (1) -
-------- ----------- ----------- ------------- ----------- ------------
Net additions for
policyowner transactions............. 361 7,159 294 1,347 102 109
-------- ----------- ----------- ------------- ----------- ------------
Net additions
for the year....................... 567 9,169 301 1,485 107 114
Policyowners' Equity,
beginning of the year...................... 448 2,041 - - - -
-------- ----------- ----------- ------------- ----------- ------------
Policyowners' Equity,
end of the year............................ $ 1,015 $ 11,210 $ 301 $ 1,485 $ 107 $ 114
-------- ----------- ----------- ------------- ----------- ------------
-------- ----------- ----------- ------------- ----------- ------------
</TABLE>
xviii
<PAGE>
NWNL'S SELECT*LIFE VARIABLE ACCOUNT
20 WASHINGTON AVENUE SOUTH
MINNEAPOLIS, MINNESOTA 55401
[LOGO] (612) 372-5507
38502i
(Select*Life)
