<PAGE> 1
JANUS RETIREMENT ADVANTAGE TABLE OF CONTENTS
<TABLE>
<S> <C>
WRL SERIES ANNUITY ACCOUNT B
Statements of Operations 1
Statements of Assets, Liabilities and Equity Accounts 1
Statements of Changes in Equity Accounts 2
Selected Per Unit Data and Ratios 2
Notes to Financial Statements 4
Report of Independent Accountants 5
JANUS ASPEN SERIES
Portfolio Managers' Commentary
Growth Portfolio 7
Aggressive Growth Portfolio 8
International Growth Portfolio 9
Worldwide Growth Portfolio 10
Balanced Portfolio 11
Flexible Income Portfolio 12
Short-Term Bond Portfolio 13
Money Market Portfolio 14
Schedules of Investments
Growth Portfolio 15
Aggressive Growth Portfolio 17
International Growth Portfolio 18
Worldwide Growth Portfolio 20
Balanced Portfolio 23
Flexible Income Portfolio 25
Short-Term Bond Portfolio 27
Money Market Portfolio 28
Notes to Schedules of Investments 28
Forward Foreign Currency Contracts 29
Statements of Assets and Liabilities 30
Statements of Operations 31
Statements of Changes in Net Assets 32
Financial Highlights 34
Notes to Financial Statements 34
Report of Independent Accountants 39
</TABLE>
<PAGE> 2
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
Statements of Operations
<TABLE>
<CAPTION>
Inter- World-
Aggressive national wide Flexible Short-Term Money
For the year or period ended Growth Growth Growth Growth Balanced Income Bond Market
December 31, 1995 Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account(1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 214,035 $ 149,299 $ 2,670 $ 41,948 $ 52,858 $109,445 $ 78,573 $54,761
Capital Gains -- 488 -- 1,227 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Mortality and expense risk charges 62,059 68,615 11,789 69,145 23,253 14,589 13,482 8,998
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) 151,976 81,172 (9,119) (25,970) 29,605 94,856 65,091 45,763
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NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from
securities transactions 312,599 1,007,159 249,575 308,438 57,563 106,996 35,589 --
Unrealized appreciation/
(depreciation) 1,398,652 992,844 85,351 1,682,590 500,276 153,913 34,279 --
- ------------------------------------------------------------------------------------------------------------------------------------
NET GAIN/(LOSS) ON INVESTMENTS 1,711,251 2,000,003 334,926 1,991,028 557,839 260,909 69,868 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in
net assets resulting
from operations $1,863,227 $2,081,175 $325,807 $1,965,058 $587,444 $355,765 $134,959 $45,763
====================================================================================================================================
</TABLE>
(1) Period May 1, 1995 (inception) to December 31, 1995
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
Statements of Assets, Liabilities and Equity Accounts
<TABLE>
<CAPTION>
Inter- World-
Aggressive national wide Flexible Short-Term Money
As of Growth Growth Growth Growth Balanced Income Bond Market
December 31, 1995 Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Shares 749,633.559 680,235.988 133,181.777 724,478.500 248,660.597 219,250.094 120,878.640 1,735,296.510
====================================================================================================================================
Investments
at cost $ 8,691,048 $ 10,083,137 $1,517,633 $ 9,483,173 $ 2,796,251 $ 2,317,304 $ 1,213,464 $ 1,735,296
====================================================================================================================================
Investments at
net asset value $ 10,082,571 $ 11,618,430 $1,591,522 $ 11,091,766 $ 3,240,047 $ 2,435,868 $ 1,212,413 $ 1,735,296
Accrued transfers
from/(to)
depositor - net 42,747 62,931 4,086 7,431 42,679 -- -- (10,074)
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Total Assets 10,125,318 11,681,361 1,595,608 11,099,197 3,282,726 2,435,868 1,212,413 1,725,222
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities: -- -- -- -- -- -- -- --
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Total Net Assets $ 10,125,318 $ 11,681,361 $ 1,595,608 $ 11,099,197 $ 3,282,726 $ 2,435,868 $ 1,212,413 $ 1,725,222
====================================================================================================================================
EQUITY ACCOUNTS:
Policyowners' equity:
Units 743,709.9093 678,536.2368 132,702.4346 732,814.0239 247,388.1409 200,343.8513 111,109.6535 164,953.0656
====================================================================================================================================
Unit Value $ 13.612776 $ 17.212994 $ 11.801621 $ 15.143928 $ 13.264176 $ 12.152373 $ 10.902046 $ 10.302721
====================================================================================================================================
Value $ 10,123,957 $ 11,679,640 $ 1,566,104 $ 11,097,683 $ 3,281,400 $ 2,434,653 $ 1,211,323 $ 1,699,465
- ------------------------------------------------------------------------------------------------------------------------------------
Depositor's equity:
Units 100.000 100.000 2,500.000 100.000 100.000 100.000 100.000 2,500.000
====================================================================================================================================
Unit Value $ 13.612776 $ 17.212994 $ 11.801621 $ 15.143928 $ 13.264176 $ 12.152373 $ 10.902046 $ 10.302721
====================================================================================================================================
Value 1,361 1,721 29,504 1,514 1,326 1,215 1,090 25,757
- ------------------------------------------------------------------------------------------------------------------------------------
Total Equity $ 10,125,318 $ 11,681,361 $ 1,595,608 $ 11,099,197 $ 3,282,726 $ 2,435,868 $ 1,212,413 $ 1,725,222
====================================================================================================================================
</TABLE>
See Notes to Financial Statements
Janus Retirement Advantage December 31, 1995 Annual Report 1
<PAGE> 3
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
Statements of Changes in Equity Accounts
<TABLE>
<CAPTION>
For the years or periods ended Growth Aggressive Growth International Growth
December 31, 1995 and December 31, 1994 Sub-Account Sub-Account Sub-Account
- ------------------------------------------------------------------------------------------------------------------------------------
1995 1994 1995 1994 1995 1994(1)
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<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 151,976 $ (10,681) $ 81,172 $ 15,098 $ (9,119) $ (2,755)
Net gain/(loss) on investments 1,711,251 (6,662) 2,000,003 560,930 334,926 (11,755)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in equity
accounts resulting from operations 1,863,227 (17,343) 2,081,175 576,028 325,807 (14,510)
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY TRANSACTIONS:
Proceeds from units sold:
Net payments 3,802,593 4,796,414 5,063,374 4,270,619 375,984 901,004
Less cost of units redeemed:
Surrender benefits 298,389 22,219 291,278 19,738 10,046 7,631
- ------------------------------------------------------------------------------------------------------------------------------------
Increase from equity transactions 3,504,204 4,774,195 4,772,096 4,250,881 365,938 893,373
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Net increase in equity accounts 5,367,431 4,756,852 6,853,271 4,826,909 691,745 878,863
Depositor's equity contribution -- -- -- -- -- 25,000
EQUITY ACCOUNTS:
Beginning of period 4,757,987 1,035 4,828,090 1,181 903,863 --
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $10,125,318 $4,757,887 $11,681,361 $4,828,090 $1,595,608 $903,863
====================================================================================================================================
</TABLE>
(1) Period May 2, 1994 (inception) to December 31, 1994
(2) Period May 2, 1995 (inception) to December 31, 1995
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
Selected Per Unit Data and Ratios*
<TABLE>
<CAPTION>
Growth Aggressive Growth International Growth
For each year or period ended December 31, Sub-Account Sub-Account Sub-Account
- ------------------------------------------------------------------------------------------------------------------------------------
1995 1994 1993(1) 1995 1994 1993(1) 1995 1994(2)
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE,
BEGINNING OF PERIOD $ 10.55 $ 10.35 $10.00 $ 13.62 $ 11.81 $10.00 $ 9.66 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS:
Net investment income/(loss) .26 (.04) .03 .15 .08 .01 (.06) (.05)
Net realized and unrealized
gain/(loss) on investments 2.80 .24 .32 3.44 1.73 1.80 2.20 (.29)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income/(loss) from operations 3.06 .20 .35 3.59 1.81 1.81 2.14 (.34)
- ------------------------------------------------------------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 13.61 $ 10.55 $10.35 $ 17.21 $ 13.62 $11.81 $ 11.80 $ 9.66
====================================================================================================================================
Total return** 29.07% 1.90% 3.50% 26.41% 15.35% 18.05% 22.11% (3.35%)
====================================================================================================================================
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period $10,125,318 $4,757,887 $1,035 $11,681,361 $4,828,090 $1,181 $1,595,608 $903,863
Ratio of net investment income/(loss)
to average net assets** 2.08% (0.35%) 0.29% 1.00% 0.63% 0.05% (0.66%) (0.59%)
====================================================================================================================================
</TABLE>
*The above table illustrates the change for a unit outstanding computed using
average units outstanding throughout each period.
**Not annualized for periods of less than 1 full year.
(1) Period September 13, 1993 (inception) to December 31, 1993
(2) Period May 2, 1994 (inception) to December 31, 1994
(3) Period May 1, 1995 (inception) to December 31, 1995
See Notes to Financial Statements
2 Janus Retirement Advantage December 31, 1995 Annual Report
<PAGE> 4
<TABLE>
<CAPTION>
Worldwide Growth Balanced Flexible Income Short-Term Bond Money Market
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------------------------------------------------------------------------------------------------------------------------------
1995 1994 1995 1994 1995 1994 1995 1994 1995(2)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ (25,970) $ (35,925) $ 29,605 $ 6,885 $ 94,856 $ 27,931 $ 65,091 $ 47,221 $ 45,763
1,991,028 (81,417) 557,839 (59,629) 260,909 (46,022) 69,868 (37,639) --
- ------------------------------------------------------------------------------------------------------------------------------------
1,965,058 (117,342) 587,444 (52,744) 355,765 (18,091) 134,959 9,582 45,763
- ------------------------------------------------------------------------------------------------------------------------------------
2,622,007 6,896,375 728,290 2,222,639 1,200,811 1,189,132 (140,677) 2,484,743 1,698,398
225,540 42,552 195,419 8,556 13,433 279,323 1,218,839 58,358 43,939
- ------------------------------------------------------------------------------------------------------------------------------------
2,396,467 6,853,823 532,871 2,214,083 1,187,378 909,809 (1,359,516) 2,426,385 1,654,459
- ------------------------------------------------------------------------------------------------------------------------------------
4,361,525 6,736,481 1,120,315 2,161,339 1,543,143 891,718 (1,224,557) 2,435,967 1,700,222
-- -- -- -- -- -- -- -- 25,000
6,737,672 1,191 2,162,411 1,072 892,725 1,007 2,436,970 1,003 --
- ------------------------------------------------------------------------------------------------------------------------------------
$11,099,197 $6,737,672 $3,282,726 $2,162,411 $2,435,868 $ 892,725 $1,212,413 $2,436,970 $1,725,222
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Worldwide Growth Balanced Flexible Income Short-Term Bond Money Market
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------------------------------------------------------------------------------------------------------------------------------
1995 1994 1993(1) 1995 1994 1993(1) 1995 1994 1993(1) 1995 1994 1993(1) 1995(2)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 11.99 $ 11.91 $10.00 $ 10.72 $ 10.72 $10.00 $ 9.90 $ 10.07 $10.00 $ 10.04 $ 10.03 $10.00 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------------
(.04) (.10) .02 .13 .05 .08 .57 .41 .10 .40 .50 .10 .30
3.19 .18 1.89 2.41 (.05) .64 1.68 (.58) (.03) .46 (.49) (.07) --
- ------------------------------------------------------------------------------------------------------------------------------------
3.15 .08 1.91 2.54 -- .72 2.25 (.17) .07 .86 .01 .03 .30
- ------------------------------------------------------------------------------------------------------------------------------------
$ 15.14 $ 11.99 $11.91 $ 13.26 $ 10.72 $10.72 $ 12.15 $ 9.90 $10.07 $ 10.90 $ 10.04 $10.03 $ 10.30
====================================================================================================================================
26.29% 0.68% 19.10% 23.73% 0.00% 7.20% 22.81% (1.74%) 0.70% 8.61% 0.08% 0.30% 3.03%
====================================================================================================================================
$11,099,197 $6,737,672 $1,191 $3,282,726 $2,162,411 $1,072 $2,435,868 $892,725 $1,007 $1,212,413 $2,436,970 $1,003 $1,725,222
(0.32%) (0.86%) 0.19% 1.08% 0.51% 0.79% 5.53% 4.69% 1.03% 4.11% 5.35% 1.04% 2.95%
====================================================================================================================================
</TABLE>
Janus Retirement Advantage December 31, 1995 Annual Report 3
<PAGE> 5
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The WRL Series Annuity Account B (the "Account") was established as a variable
accumulation deferred annuity separate account of Western Reserve Life
Assurance Co. of Ohio ("WRL") and is registered as a unit investment trust
under the Investment Company Act of 1940, as amended. The Account encompasses
the Janus Retirement Advantage,(R) a tax deferred variable annuity contract
issued by WRL. The Account contains eight investment options referred to as
Sub-Accounts: Growth; Aggressive Growth; International Growth; Worldwide
Growth; Balanced; Flexible Income; Short-Term Bond; and Money Market. Each
Sub-Account invests in the corresponding Portfolio of the Janus Aspen Series
Trust (the "Trust"), which is registered as an open-end management investment
company under the Investment Company Act of 1940, as amended.
The Account's equity transactions are accounted for using the appropriate
effective date at the corresponding accumulation unit value.
On May 1, 1995, WRL made an initial depositor's equity contribution of $25,000
to the Money Market Sub-Account for which it received 2,500 units of the
Sub-Account.
The following significant accounting policies, which are in conformity with
generally accepted accounting principles for unit investment trusts, have been
consistently used in preparation of the Account's financial statements.
VALUATION OF INVESTMENTS
The investments in the Trust's shares are stated at the closing net asset value
("NAV") per share as determined by the Trust on December 31, 1995. Investment
transactions are accounted for on the trade date, using the Trust NAV per share
next determined after receipt of sale or redemption order without sales
charges. Dividend income and capital gains distributions are recorded on the
ex-dividend date. The cost of investments sold is determined on a first-in,
first-out basis.
FEDERAL INCOME TAXES
The operations of the Account are a part of and are taxed with the total
operations of WRL, which is taxed as a life insurance company under the
Internal Revenue Code of 1986, as amended. Under current law, the investment
income of the Account, including realized and unrealized capital gains, is not
taxable to WRL. Accordingly, no provision for Federal income taxes has been
made.
2. CHARGES AND DEDUCTIONS
Charges are assessed by WRL in connection with the issuance and administration
of the Contracts.
CONTRACT CHARGE
On each anniversary through maturity date, WRL will deduct an annual contract
charge as partial compensation for providing administrative services under the
Contracts. Deduction of the annual contract charge is currently waived when the
account value on the anniversary is equal to or greater than $25,000.
ANNUITY SUB-ACCOUNT CHARGE
A daily charge equal to an annual rate of .85% of average daily net assets of
each sub-account is assessed to compensate WRL for assumption of mortality and
expense risks and administrative services in connection with issuance and
administration of the Contracts. This charge (not assessed at the individual
contract level) effectively reduces the value of a unit outstanding during the
year.
3. DIVIDENDS AND DISTRIBUTIONS
Dividends of the Trust's Money Market Portfolio are declared daily and
reinvested monthly. Dividends of the remaining Trust portfolios are declared
and reinvested semiannually, while capital gains distributions are declared and
reinvested annually. Dividends and distributions of the Trust are generally
paid to and reinvested by the Account the next business day after declaration.
4. OTHER MATTERS
As of December 31, 1995 the equity accounts include net unrealized appreciation
(depreciation) on investments as follows:
<TABLE>
<S> <C>
Sub-Account:
Growth $1,391,523
Aggressive Growth 1,535,293
International Growth 73,889
Worldwide Growth 1,608,593
Balanced 443,796
Flexible Income 118,564
Short-Term Bond (1,051)
Money Market N/A
</TABLE>
4 Janus Retirement Advantage December 31, 1995 Annual Report
<PAGE> 6
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF DIRECTORS OF WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO AND
CONTRACT OWNERS OF THE JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
In our opinion, the accompanying statements of assets, liabilities and equity
accounts and the related statements of operations and of changes in equity
accounts and the selected per unit data and ratios present fairly, in all
material respects, the financial position of the Growth, Aggressive Growth,
Worldwide Growth, International Growth, Balanced, Flexible Income, Short-Term
Bond and Money Market sub-accounts of the WRL Series Annuity Account B (a
separate account of Western Reserve Life Assurance Co. of Ohio, hereafter
referred to as the "Account") at December 31, 1995, the results of each of
their operations, the changes in each of their equity accounts and the selected
per unit data and ratios for each of the periods indicated, in conformity with
generally accepted accounting principles. These financial statements and
selected per unit data and ratios (hereafter referred to as "financial
statements") are the responsibility of the Account's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for the
opinion expressed above.
PRICE WATERHOUSE LLP
Kansas City, Missouri
January 31, 1996
Janus Retirement Advantage December 31, 1995 Annual Report 5
