PaineWebber Life Variable Annuity Account
- --------------------------------------------------------------------------------
Statement of Net Assets
June 30, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE><CAPTION>
MONEY
MARKET GOVERNMENT
COMBINED DIVISION DIVISION
------------- ------------- -------------
<S> <C> <C> <C>
ASSETS
Investments at net asset value:
PaineWebber Series Trust Money Market Portfolio,
8,666,963 shares at $1.00 per share
(cost--$8,666,963).................................... $ 8,666,963 $ 8,666,963
PaineWebber Series Trust Government Portfolio, 453,526
shares at $11.47 per share (cost--$5,138,722)......... 5,201,941 $ 5,201,941
PaineWebber Series Trust Fixed Income Portfolio,
1,045,584 shares at $9.45 per share
(cost--$9,571,073).................................... 9,880,773
PaineWebber Series Trust Global Income Portfolio,
1,352,561 shares at $11.62 per share
(cost--$15,747,746)................................... 15,716,753
PaineWebber Series Trust Balanced Portfolio, 1,410,431
shares at $10.97 per share (cost--$13,808,805)........ 15,472,432
PaineWebber Series Trust Asset Allocation Portfolio,
744,316 shares at $10.94 per share
(cost--$8,341,949).................................... 8,142,814
PaineWebber Series Trust Dividend Growth Portfolio,
447,275 shares at $10.61 per share
(cost--$4,308,400).................................... 4,745,586
PaineWebber Series Trust Growth Portfolio, 1,055,887
shares at $16.35 per share (cost--$17,560,437)........ 17,263,760
PaineWebber Series Trust Aggressive Growth Portfolio,
1,488,696 shares at $11.11 per share
(cost--$14,773,480)................................... 16,539,410
PaineWebber Series Trust Global Growth Portfolio,
1,542,305 shares at $11.76 per share
(cost--$21,663,324)................................... 18,137,503
------------- ------------- -------------
TOTAL INVESTMENTS (COST--$119,580,899)............. 119,767,935 8,666,963 5,201,941
Accrued investment income............................. 35,787 35,787 --
Payable to PaineWebber Life Insurance Company......... (413 ) -- --
------------- ------------- -------------
TOTAL NET ASSETS................................... $119,803,309 $ 8,702,750 $ 5,201,941
------------- ------------- -------------
------------- ------------- -------------
NET ASSETS REPRESENTED BY:
<CAPTION>
Currently payable annuity contracts:
- ------------------------------------------------------
<S> <C>
Fixed Income Division................................................................ $ 2,411
Global Income Division............................................................... 4,708
Asset Allocation Division............................................................ 17,562
Growth Division...................................................................... 7,213
Aggressive Growth Division........................................................... 2,608
Global Growth Division............................................................... 14,766
-------------
49,268
</TABLE>
<TABLE><CAPTION>
Contracts in accumulation period:
- -------------------------------------------------
UNITS VALUE
-------------- --------------
Contracts sold subject to Early Withdrawal
Charges:
- -------------------------------------------------
<S> <C> <C> <C>
Money Market Division............................ 787,006 $10.39 8,176,383
Government Division.............................. 457,298 10.20 4,665,776
Fixed Income Division............................ 944,828 9.51 8,981,290
Global Income Division........................... 1,432,452 10.18 14,584,395
Balanced Division................................ 1,301,647 10.80 14,058,374
Asset Allocation Division........................ 713,586 10.44 7,451,966
Dividend Growth Division......................... 386,169 10.67 4,121,804
Growth Division.................................. 1,721,775 9.72 16,741,977
Aggressive Growth Division....................... 1,394,113 10.85 15,122,400
Global Growth Division........................... 1,765,002 9.57 16,891,215
--------------
110,795,580
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE><CAPTION>
FIXED GLOBAL ASSET DIVIDEND AGGRESSIVE
INCOME INCOME BALANCED ALLOCATION GROWTH GROWTH GROWTH
DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION
------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
$ 9,880,773
$15,716,753
$15,472,432
$ 8,142,814
$ 4,745,586
$17,263,760
$16,539,410
------------ ------------ ------------ ------------ ------------ ------------ ------------
9,880,773 15,716,753 15,472,432 8,142,814 4,745,586 17,263,760 16,539,410
-- -- -- -- -- -- --
-- -- -- -- -- (413) --
------------ ------------ ------------ ------------ ------------ ------------ ------------
$ 9,880,773 $15,716,753 $15,472,432 $ 8,142,814 $ 4,745,586 $17,263,347 $16,539,410
------------ ------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
GLOBAL
GROWTH
DIVISION
- -------------
$18,137,503
- -------------
18,137,503
--
--
- -------------
$18,137,503
- -------------
- -------------
<TABLE><CAPTION>
UNITS VALUE
------------- -------------
Contracts sold not subject to Early Withdrawal
Charges:
- ---------------------------------------------------
<S> <C> <C> <C>
Money Market Division.............................. 50,841 10.35 526,367
Government Division................................ 52,620 10.19 536,165
Fixed Income Division.............................. 94,639 9.48 897,072
Global Income Division............................. 112,774 10.00 1,127,650
Balanced Division.................................. 131,281 10.77 1,414,058
Asset Allocation Division.......................... 64,350 10.46 673,286
Dividend Growth Division........................... 57,004 10.94 623,782
Growth Division.................................... 53,419 9.62 514,157
Aggressive Growth Division......................... 130,764 10.82 1,414,402
Global Growth Division............................. 141,039 8.73 1,231,522
-------------
8,958,461
-------------
$ 119,803,309
-------------
-------------
</TABLE>
See accompanying notes.
<PAGE>
PaineWebber Life Variable Annuity Account
- --------------------------------------------------------------------------------
Statement of Operations
For the Six Months Ended June 30, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE><CAPTION>
MONEY
MARKET GOVERNMENT
COMBINED DIVISION DIVISION
---------------- ---------------- ----------------
INVESTMENT INCOME (LOSS)
<S> <C> <C> <C>
Income:
Dividends............................... $ 209,389 $209,389 $--
Capital gains distributions............. -- -- --
Expenses (Note 2):
Administrative charges.................. (151,534) (33,526) (3,343)
Mortality, distribution and expense risk
and enhanced death benefit fees....... (908,861) (64,039) (38,017)
---------------- -------- --------
NET INVESTMENT INCOME (LOSS)........ (851,006) 111,824 (41,360)
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 4)
Net realized gain (loss) on
investments........................... (676,483) -- (14,806)
Net unrealized appreciation
(depreciation) of investments......... 9,607,369 -- 500,284
---------------- -------- --------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS........................ $8,079,880 $111,824 $444,118
---------------- -------- --------
---------------- -------- --------
</TABLE>
See accompanying notes.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE><CAPTION>
FIXED GLOBAL ASSET DIVIDEND AGGRESSIVE GLOBAL
INCOME INCOME BALANCED ALLOCATION GROWTH GROWTH GROWTH GROWTH
DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION
- -------- --------- ---------- ---------- -------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
$ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
-- -- -- -- -- -- -- --
(8,063) (20,309) (17,050) (6,238) (5,875) (14,311) (25,558) (17,261)
(77,002) (127,769) (113,774) (57,456) (32,989) (127,508) (120,630) (149,677)
- -------- --------- ---------- ---------- -------- ---------- ---------- -----------
(85,065) (148,078) (130,824) (63,694) (38,864) (141,819) (146,188) (166,938)
26,025 (85,441) 114,652 (37,695) 7,962 (70,894) 40,630 (656,916)
754,697 1,127,380 2,049,647 1,040,642 590,739 1,938,676 2,131,489 (526,185)
- -------- --------- ---------- ---------- -------- ---------- ---------- -----------
$695,657 $ 893,861 $2,033,475 $ 939,253 $559,837 $1,725,963 $2,025,931 $(1,350,039)
- -------- --------- ---------- ---------- -------- ---------- ---------- -----------
- -------- --------- ---------- ---------- -------- ---------- ---------- -----------
</TABLE>
<PAGE>
PaineWebber Life Variable Annuity Account
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
Year ended December 31, 1994 and Six Months Ended June 30, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE><CAPTION>
MONEY
MARKET GOVERNMENT
COMBINED DIVISION DIVISION
------------- ------------- -------------
<S> <C> <C> <C>
NET ASSETS AT JANUARY 1, 1994........................ $ 19,471,410 $ 1,215,765 $ 324,549
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)........................ 2,931,758 76,794 286,077
Net realized loss on investments.................... (355,956 ) -- (24,543)
Net unrealized depreciation of investments.......... (9,008,878 ) -- (416,230)
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................. (6,433,076 ) 76,794 (154,696)
Changes from principal transactions:
Purchase payments.................................. 98,757,595 16,778,326 3,384,732
Contract distributions and terminations............. (5,110,803 ) (1,438,329) (168,128)
Transfer payments (to) from other divisions......... -- (8,617,840) 521,553
Annuity payments.................................... (2,543 ) -- --
Actuarial adjustment in reserves for currently
payable annuity contracts......................... 29,037 -- --
------------- ------------- -------------
INCREASE IN NET ASSETS DERIVED FROM PRINCIPAL
TRANSACTIONS.................................... 93,673,286 6,722,157 3,738,157
------------- ------------- -------------
TOTAL INCREASE.................................. 87,240,210 6,798,951 3,583,461
------------- ------------- -------------
NET ASSETS AT DECEMBER 31, 1994................. 106,711,620 8,014,716 3,908,010
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)........................ (851,006 ) 111,824 (41,360)
Net realized gain (loss) on investments............. (676,483 ) -- (14,806)
Net unrealized appreciation (depreciation) of
investments....................................... 9,607,369 -- 500,284
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................. 8,079,880 111,824 444,118
Changes from principal transactions:
Purchase payments................................... 10,209,448 2,414,963 353,409
Contract distributions and terminations............. (5,215,285 ) (844,560) (154,363)
Transfer payments (to) from other divisions......... (187 ) (994,193) 650,767
Annuity payments.................................... (3,811 ) -- --
Actuarial adjustment in reserves for currently
payable annuity contracts......................... 21,644 -- --
------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS DERIVED FROM
PRINCIPAL TRANSACTION........................... 5,011,809 576,210 849,813
------------- ------------- -------------
TOTAL INCREASE (DECREASE)....................... 13,091,689 688,034 1,293,931
------------- ------------- -------------
NET ASSETS AT JUNE 30, 1995..................... $119,803,309 $ 8,702,750 $ 5,201,941
------------- ------------- -------------
------------- ------------- -------------
</TABLE>
See accompanying notes.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE><CAPTION>
FIXED GLOBAL ASSET DIVIDEND AGGRESSIVE GLOBAL
INCOME INCOME BALANCED ALLOCATION GROWTH GROWTH GROWTH GROWTH
DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,482,547 $ 3,625,846 $ 2,264,479 $ 799,007 $ 683,426 $ 1,811,876 $ 2,816,406 $ 4,447,509
143,204 70,954 (26,803) 677,601 (1,005) 957,740 (145,769) 892,965
(26,731) (146,507) (12,254) (22,616) (4,897) (45,093) (19,887) (53,428)
(443,886) (870,107) (381,258) (1,163,839) (145,968) (2,207,272) (369,861) (3,010,457)
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
(327,413) (945,660) (420,315) (508,854) (151,870) (1,294,625) (535,517) (2,170,920)
6,411,815 14,370,056 9,126,818 5,837,235 2,692,033 12,316,174 10,684,571 17,155,835
(357,801) (745,020) (532,742) (294,074) (85,135) (519,241) (469,774) (500,559)
644,514 (132,456) 1,721,363 701,539 202,347 1,782,719 1,116,820 2,059,441
-- (460) -- (224) -- (452) -- (1,407)
-- 5,047 -- 2,747 -- 5,291 -- 15,952
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
6,698,528 13,497,167 10,315,439 6,247,223 2,809,245 13,584,491 11,331,617 18,729,262
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
6,371,115 12,551,507 9,895,124 5,738,369 2,657,375 12,289,866 10,796,100 16,558,342
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
7,853,662 16,177,353 12,159,603 6,537,376 3,340,801 14,101,742 13,612,506 21,005,851
(85,065) (148,078) (130,824) (63,694) (38,864) (141,819) (146,188) (166,938)
26,025 (85,441) 114,652 (37,695) 7,962 (70,894) 40,630 (656,916)
754,697 1,127,380 2,049,647 1,040,642 590,739 1,938,676 2,131,489 (526,185)
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
695,657 893,861 2,033,475 939,253 559,837 1,725,963 2,025,931 (1,350,039)
1,479,641 432,718 1,081,267 343,032 329,200 1,415,201 1,272,640 1,087,377
(354,867) (658,948) (1,277,018) (148,145) (147,661) (366,607) (834,537) (428,579)
204,653 (1,127,815) 1,475,105 459,578 663,409 385,690 460,843 (2,178,224)
(226) (299) -- (1,506) -- (523) (225) (1,032)
2,253 (117) -- 13,226 -- 1,881 2,252 2,149
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
1,331,454 (1,354,461) 1,279,354 666,185 844,948 1,435,642 900,973 (1,518,309)
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
2,027,111 (460,600) 3,312,829 1,605,438 1,404,785 3,161,605 2,926,904 (2,868,348)
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 9,880,773 $15,716,753 $15,472,432 $ 8,142,814 $ 4,745,586 $17,263,347 $16,539,410 $18,137,503
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
<PAGE>
PaineWebber Life Variable Annuity Account
- --------------------------------------------------------------------------------
Notes to Financial Statements
June 30, 1995
- --------------------------------------------------------------------------------
1. INVESTMENT AND ACCOUNTING POLICIES
PaineWebber Life Variable Annuity Account was organized by PaineWebber Life
Insurance Company (the Company) in accordance with the provisions of California
Insurance laws and is a part of the total operations of the Company. The assets
and liabilities of the PaineWebber Life Variable Annuity Account are clearly
identified and distinguished from the other assets and liabilities of the
Company. The PaineWebber Life Variable Annuity Account invests solely in
specified portfolios of PaineWebber Series Trust, an open-end management
investment company under the Investment Company Act of 1940, as directed by
eligible contract owners. All series of shares are diversified except Global
Income Portfolio. Investments are stated at the closing net asset values per
share on June 30, 1995.
The average cost method is used to determine realized gains and losses.
Dividends are taken into income on an accrual basis as of the ex-dividend date.
Currently payable annuity contract reserves are computed according to the
Individual Annuity Valuation 1983 Table using an assumed interest rate of 4.0%.
If the amount paid to the contractholder is less than originally estimated,
charges paid for mortality and expense risks are reimbursed to the Company. If
additional amounts are required, the Company reimburses the PaineWebber Life
Variable Annuity Account.
2. EXPENSES
The Company is compensated for mortality, distribution and expense risks and
enhanced death benefits by a charge equivalent to an annual rate of 1.60% of the
asset value of each contract sold subject to early withdrawal charges and 1.77%
of the asset value of each contract sold not subject to early withdrawal
charges. These charges amounted to $908,861 for the six months ended June 30,
1995.
An annual contract administration charge of $30 is deducted on the first
valuation date on or after each contract anniversery prior to the annuity date.
A transfer charge of $10 will be imposed on each transfer between divisions
(portfolios) of the account in excess of twelve in any one calendar year.
However, the Company has waived this charge until further notice. A withdrawal
transaction charge of the lesser of $25 or 2% of the amount withdrawn will be
imposed on each withdrawal in excess of two per policy year. Total
administrative charges for the six months ended June 30, 1995, were $151,534.
3. FEDERAL INCOME TAXES
Operations of the PaineWebber Life Variable Annuity Account forms a part of the
operations of the Company which is taxed as a life insurance company under the
Internal Revenue Code. Under current law, no federal income taxes are payable
with respect to operations of the PaineWebber Life Variable Annuity Account.
<PAGE>
PaineWebber Life Variable Annuity Account
- --------------------------------------------------------------------------------
Notes to Financial Statements--(continued)
June 30, 1995
- --------------------------------------------------------------------------------
4. PURCHASES AND SALES OF INVESTMENT SECURITIES
The aggregate cost of purchases and proceeds from sales of investments were as
follows:
<TABLE><CAPTION>
FOR THE SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
-------------------------------------- --------------------------------------
PURCHASES SALES PURCHASES SALES
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Portfolio:
Money Market.... $ 4,998,851 $ 4,312,728 $ 15,899,666 $ 9,133,295
Government...... 1,517,513 379,348 4,371,432 656,851
Fixed Income.... 2,856,516 1,390,659 7,338,995 714,448
Global Income... 917,133 2,143,938 15,823,091 2,218,561
Balanced........ 3,380,801 2,122,275 10,680,140 498,837
Asset
Allocation.... 1,664,911 317,028 6,638,099 373,793
Dividend
Growth........ 1,097,949 255,855 3,010,575 227,758
Growth.......... 3,301,733 1,019,044 14,746,301 1,134,296
Aggressive
Growth........ 1,888,125 1,116,956 12,046,789 873,741
Global Growth... 2,388,589 2,910,097 19,479,978 875,645
----------------- ----------------- ----------------- -----------------
$ 24,012,121 $15,967,928 $ 110,035,066 $16,707,225
----------------- ----------------- ----------------- -----------------
----------------- ----------------- ----------------- -----------------
</TABLE>
5. SUMMARY OF CHANGES FROM UNIT TRANSACTIONS
Transactions in units were as follows:
<TABLE><CAPTION>
FOR THE SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
-------------------------------------- --------------------------------------
PURCHASED REDEEMED PURCHASED REDEEMED
----------------- ----------------- ----------------- -----------------
CONTRACTS SOLD
SUBJECT TO EARLY
WITHDRAWAL CHARGE
<S> <C> <C> <C> <C>
Division:
Money Market.... 831,434 773,917 1,972,868 1,345,459
Government...... 143,773 52,043 401,999 58,883
Fixed Income.... 847,039 691,031 837,699 188,712
Global Income... 88,530 223,263 1,578,700 323,231
Balanced........ 416,592 206,693 988,190 85,212
Asset
Allocation.... 100,940 33,735 629,776 48,389
Dividend
Growth........ 107,896 29,900 273,190 26,410
Growth.......... 1,010,926 850,580 1,650,367 246,582
Aggressive
Growth........ 263,722 161,975 1,159,849 108,333
Global Growth... 196,597 334,655 1,740,093 153,753
--------- --------- ---------- ---------
4,007,449 3,357,792 11,232,731 2,584,964
--------- --------- ---------- ---------
--------- --------- ---------- ---------
</TABLE>
<PAGE>
PaineWebber Life Variable Annuity Account
- --------------------------------------------------------------------------------
Notes to Financial Statements--(continued)
June 30, 1995
- --------------------------------------------------------------------------------
<TABLE><CAPTION>
FOR THE SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
-------------------------------------- --------------------------------------
PURCHASED REDEEMED PURCHASED REDEEMED
----------------- ----------------- ----------------- -----------------
CONTRACTS SOLD
NOT SUBJECT TO
EARLY WITHDRAWAL
CHARGE
<S> <C> <C> <C> <C>
Division:
Money Market.... 30,837 36,429 209,584 172,458
Government...... 1,504 4,927 56,564 10,680
Fixed Income.... 52,513 58,565 136,677 50,540
Global Income... 22,511 27,662 101,415 23,688
Balanced........ 8,900 80,212 186,832 24,775
Asset
Allocation.... 7,246 8,435 57,878 4,844
Dividend
Growth........ 10,216 3,423 50,832 7,003
Growth.......... 47,313 49,522 61,681 29,156
Aggressive
Growth........ 11,326 21,798 126,078 27,412
Global Growth... 3,613 33,688 133,084 28,628
-------- -------- -------- --------
195,979 324,661 1,120,625 379,184
-------- -------- -------- --------
-------- -------- -------- --------
</TABLE>
6. NET ASSETS
Net assets at June 30, 1995, consisted of the following:
<TABLE><CAPTION>
MONEY FIXED GLOBAL
MARKET GOVERNMENT INCOME INCOME BALANCED
COMBINED DIVISION DIVISION DIVISION DIVISION DIVISION
------------ ---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Unit transactions.................... $117,310,658 $8,624,939 $4,893,000 $9,514,684 $15,557,351 $13,956,946
Accumulated net investment income.... 2,305,615 77,811 245,722 56,389 190,395 (148,141)
Net unrealized appreciation
(depreciation) of investments...... 187,036 -- 63,219 309,700 (30,993) 1,663,627
------------ ---------- ---------- ---------- ----------- -----------
$119,803,309 $8,702,750 $5,201,941 $9,880,773 $15,716,753 $15,472,432
------------ ---------- ---------- ---------- ----------- -----------
------------ ---------- ---------- ---------- ----------- -----------
</TABLE>
<TABLE><CAPTION>
ASSET DIVIDEND AGGRESSIVE GLOBAL
ALLOCATION GROWTH GROWTH GROWTH GROWTH
DIVISION DIVISION DIVISION DIVISION DIVISION
---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Unit transactions.................... $7,687,593 $4,337,439 $16,735,108 $15,054,996 $20,948,602
Accumulated net investment income.... 654,356 (29,039) 824,916 (281,516) 714,722
Net unrealized appreciation
(depreciation) of investments...... (199,135) 437,186 (296,677) 1,765,930 (3,525,821)
---------- ---------- ----------- ----------- -----------
$8,142,814 $4,745,586 $17,263,347 $16,539,410 $18,137,503
---------- ---------- ----------- ----------- -----------
---------- ---------- ----------- ----------- -----------
</TABLE>
