JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
AGGRESSIVE INTERNATIONAL WORLDWIDE
GROWTH GROWTH GROWTH GROWTH BALANCED
AS OF DECEMBER 31, 1996 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------- -------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Shares 1,075,847.993 1,033,123.573 391,489.221 1,206,185.826 360,031.089
=============== ============== ============ =============== =============
Investments at cost $ 14,512,658 $ 18,141,362 $ 5,535,154 $ 21,698,720 $ 4,588,927
=============== ============== ============ =============== =============
Investments at net asset value $ 16,686,405 $ 18,844,173 $ 6,154,211 $ 23,448,252 $ 5,317,659
Accrued transfers from/(to)
depositor - net 9,614 (24,137) 2,061 52,264 18,536
--------------- -------------- ------------ --------------- -------------
Total Assets 16,696,019 18,820,036 6,156,272 23,500,516 5,336,195
--------------- -------------- ------------ --------------- -------------
LIABILITIES: -- -- -- -- --
Total Net Assets $ 16,696,019 $ 18,820,036 $ 6,156,272 $ 23,500,516 $ 5,336,195
=============== ============== ============ =============== =============
EQUITY ACCOUNTS:
Policyowners' equity:
Units 1,042,859.6844 1,020,107.0897 390,010.6011 1,211,235.2007 348,749.4610
=============== ============== ============ =============== =============
Unit Value $ 16.009842 $ 18.449079 $ 15.784884 $ 19.402108 $ 15.300942
=============== ============== ============ =============== =============
Value $ 16,696,019 $ 18,820,036 $ 6,156,272 $ 23,500,516 $ 5,336,195
--------------- -------------- ------------ --------------- -------------
Depositor's equity:
Units NA NA NA NA NA
=============== ============== ============ =============== =============
Unit Value NA NA NA NA NA
=============== ============== ============ =============== =============
Value NA NA NA NA NA
=============== ============== ============ =============== =============
Total Equity $ 16,696,019 $ 18,820,036 $ 6,156,272 $ 23,500,516 $ 5,336,195
=============== ============== ============ =============== =============
</TABLE>
(RESTUBBED TABLES FROM ABOVE)
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS, LIABILITIES AND EQUITY ACCOUNTS
FLEXIBLE SHORT-TERM MONEY
INCOME HIGH-YIELD BOND MARKET
AS OF DECEMBER 31, 1996 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- -------------- ------------ --------------
<S> <C> <C> <C> <C>
ASSETS:
Shares 194,313.703 60,400.675 100,928.148 6,069,905.540
============== ============== ============ ==============
Investments at cost $ 2,165,955 $ 663,101 $ 1,008,832 $ 6,069,906
============== ============== ============ ==============
Investments at net asset value $ 2,184,086 $ 654,139 $ 1,006,254 $ 6,069,906
Accrued transfers from/(to)
depositor - net 14,014 5,082 2,898 25,371
-------------- -------------- ------------ --------------
Total Assets 2,198,100 659,221 1,009,152 6,095,277
-------------- -------------- ------------ --------------
LIABILITIES: -- -- -- --
Total Net Assets $ 2,198,100 $ 659,221 $ 1,009,152 $ 6,095,277
============== ============== ============ ==============
EQUITY ACCOUNTS:
Policyowners' equity:
Units 166,841.2528 56,405.1379 89,662.3361 567,317.3363
============== ============== ============ ==============
Unit Value $ 13.174798 $ 11.191231 $ 11.255026 $ 10.744035
============== ============== ============ ==============
Value $ 2,198,100 $ 631,243 $ 1,099,152 $ 6,095,277
-------------- -------------- ------------ --------------
Depositor's equity:
Units NA 2,500.0000 NA NA
============== ============== ============ ==============
Unit Value NA $ 11.191231 NA NA
============== ============== ============ ==============
Value NA $ 27,978 NA NA
============== ============== ============ ==============
Total Equity $ 2,198,100 $ 659,221 $ 1,099,152 $ 6,095,277
============== ============== ============ ==============
</TABLE>
See Notes to Financial Statements
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1996 ANNUAL REPORT
2
<PAGE>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
AGGRESSIVE INTERNATIONAL WORLDWIDE
FOR THE YEAR OR PERIOD ENDED GROWTH GROWTH GROWTH GROWTH BALANCED
DECEMBER 31, 1996 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- ------------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 318,685 $ 136,429 $ 34,372 $ 245,903 $112,356
Capital Gains 63,573 33,258 50,445 63,173 1,692
---------- ---------- -------- ---------- --------
382,258 169,687 84,817 309,076 114,048
---------- ---------- -------- ---------- --------
EXPENSES:
Mortality and expense risk charges 96,073 105,865 24,199 118,749 29,993
---------- ---------- -------- ---------- --------
Net investment income/(loss) 286,185 63,822 60,618 190,327 84,055
---------- ---------- -------- ---------- --------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from
securities transactions 1,017,388 1,707,503 351,175 3,613,903 249,150
Change in unrealized
appreciation/(depreciation) 782,224 (832,483) 545,168 140,939 284,936
---------- ---------- -------- ---------- --------
NET GAIN/(LOSS) ON INVESTMENTS 1,799,612 875,020 896,343 3,754,842 534,086
---------- ---------- -------- ---------- --------
Net increase/(decrease) in net assets
resulting from operations $2,085,797 $ 938,842 $956,961 $3,945,169 $618,141
========== ========== ======== ========== ========
</TABLE>
(RESTUBBED TABLE FROM ABOVE)
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FLEXIBLE SHORT-TERM MONEY
FOR THE YEAR OR PERIOD ENDED INCOME HIGH-YIELD BOND MARKET
DECEMBER 31, 1996 SUB-ACCOUNT SUB-ACCOUNT(1) SUB-ACCOUNT SUB-ACCOUNT
----------- -------------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 150,217 $19,727 $47,916 $183,318
Capital Gains 891 -- -- --
--------- ------- ------- --------
151,108 19,727 47,916 183,318
--------- ------- ------- --------
EXPENSES:
Mortality and expense risk charges 14,546 1,501 8,197 25,904
--------- ------- ------- --------
Net investment income/(loss) 136,562 18,226 39,719 157,414
--------- ------- ------- --------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from
securities transactions 129,118 33,496 (8,368) --
Change in unrealized
appreciation/(depreciation) (100,433) (8,962) (1,526) --
--------- ------- ------- --------
NET GAIN/(LOSS) ON INVESTMENTS 28,685 24,534 (9,894) --
--------- ------- ------- --------
Net increase/(decrease) in net assets
resulting from operations $ 165,247 $42,760 $29,825 $157,414
========= ======= ======= ========
<FN>
(1) Period May 1, 1996 (inception) to December 31, 1996
</FN>
</TABLE>
See Notes to Financial Statements
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1996 ANNUAL REPORT
<PAGE>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN EQUITY ACCOUNTS
DECEMBER 31, 1996 AND GROWTH AGGRESSIVE INTERNATIONAL GROWTH
---------------------------- ---------------------------- ----------------------------
1996 1995 1996 1995 1996 1995
----------- ----------- ---------------------------- ----------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 286,185 $ 151,976 $ 63,822 $ 81,172 $ 60,618 $ (9,119)
Net gain/(loss) on investments 1,799,612 1,711,251 875,020 2,000,003 896,343 334,926
----------- ----------- ----------- ----------- ----------- -----------
Net increase/(decrease)
in equity accounts
resulting from operations 2,085,797 1,863,227 938,842 2,081,175 956,961 325,807
----------- ----------- ----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Proceeds from units
sold (redeemed) 4,799,761 3,802,593 6,702,926 5,063,374 3,703,610 375,984
Less cost of units redeemed:
Administrative charges 8,882 -- 11,557 -- 2,040 --
Surrender benefits 304,288 298,389 488,330 291,278 63,430 10,046
Death Benefits 235 -- 1,357 -- 1,633 --
----------- ----------- ----------- ----------- ----------- -----------
Increase/(decrease) from
equity transactions 4,486,356 3,504,204 6,201,682 4,772,096 3,636,507 365,938
----------- ----------- ----------- ----------- ----------- -----------
Net increase/(decrease) in
equity accounts 6,572,153 5,367,431 7,140,524 6,853,271 4,593,468 691,745
Depositor's equity
contribution/(redemption) (1,452) -- (1,849) -- (32,804) --
Equity Accounts:
Beginning of period 10,125,318 4,757,887 11,681,361 4,828,090 1,595,608 903,863
----------- ----------- ----------- ----------- ----------- -----------
End of period $16,696,019 $10,125,318 $18,820,036 $11,681,361 $ 6,156,272 $1,595,608
=========== =========== =========== =========== =========== ===========
</TABLE>
(TABLE RESTUBBED FROM ABOVE)
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN EQUITY ACCOUNTS
FOR THE YEAR OR PERIOD ENDED
DECEMBER 31, 1996 AND WORLDWIDE GROWTH BALANCED
DECEMBER 31, 1995 SUB-ACCOUNT SUB-ACCOUNT
----------------------------- --------------------------
1996 1995 1996 1995
----------------------------- --------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 190,327 $ (25,970) $ 84,055 $ 29,605
Net gain/(loss) on investments 3,754,842 1,991,028 534,086 557,839
----------- ----------- ---------- ----------
Net increase/(decrease)
in equity accounts
resulting from operations 3,945,169 1,965,058 618,141 587,444
----------- ----------- ---------- ----------
EQUITY TRANSACTIONS:
Proceeds from units
sold (redeemed) 8,933,782 2,622,007 1,501,584 728,290
Less cost of units redeemed:
Administrative charges 9,466 -- 3,148 --
Surrender benefits 465,167 225,540 61,517 195,419
Death Benefits 1,333 -- 229 --
----------- ----------- ---------- ----------
Increase/(decrease) from
equity transactions 8,457,816 2,396,467 1,436,690 532,871
----------- ----------- ---------- ----------
Net increase/(decrease) in
equity accounts 12,402,985 4,361,525 2,054,831 1,120,315
Depositor's equity
contribution/(redemption) (1,666) -- (1,362) --
EQUITY ACCOUNTS:
Beginning of period 11,099,197 6,737,672 3,282,726 2,162,411
----------- ----------- ---------- ----------
End of period $23,500,516 $11,099,197 $5,336,195 $3,282,726
=========== =========== ========== ==========
<FN>
(1) Period May 1, 1995 (inception) to December 31, 1995
(2) Period May 1, 1996 (inception) to December 31, 1996 Statements of Changes
in Equity Accounts
</FN>
</TABLE>
See Notes to Financial Statements
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1996 ANNUAL REPORT
<PAGE>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN EQUITY ACCOUNTS
FOR THE YEAR OR PERIOD ENDED
DECEMBER 31, 1996 AND FLEXIBLE INCOME HIGH-YIELD SHORT-TERM BOND MONEY MARKET
DECEMBER 31, 1995 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------ ----------- ------------------------ ------------------------
1996 1995 1996(2) 1996 1995 1996 1995 (1)
------------------------ ----------- ----------------------- ------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 136,562 $ 94,856 $ 18,226 $ 39,719 $ 65,091 $ 157,414 $ 45,763
Net gain/(loss) on investments 28,685 260,909 24,534 (9,894) 69,868 -- --
---------- ---------- -------- ---------- ---------- ---------- ----------
Net increase/(decrease) in
equity accounts resulting
from operations 165,247 355,765 42,760 29,825 134,959 157,414 45,763
---------- ---------- -------- ---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Proceeds from units
sold(redeemed) (326,493) 1,200,811 591,467 (173,543) (140,677) 4,791,643 1,698,398
Less cost of units redeemed:
Administrative charges 1,223 -- 6 883 -- 626 --
Surrender benefits 73,878 13,433 -- 57,578 1,218,839 552,314 43,939
Death benefits 224 -- -- -- -- -- --
---------- ---------- -------- ---------- ---------- ---------- ----------
Increase/(decrease) from
equity transactions (401,818) 1,187,378 591,461 (232,004) (1,359,516) 4,238,703 1,654,459
---------- ---------- -------- ---------- ---------- ---------- ----------
Net increase/(decrease) in
equity accounts (236,571) 1,543,143 634,221 (202,179) (1,224,557) 4,396,117 1,700,222
Depositor's equity contribution/
(redemption) (1,197) -- 25,000 (1,082) -- (26,062) 25,000
EQUITY ACCOUNTS:
Beginning of period 2,435,868 892,725 -- 1,212,413 2,436,970 1,725,222 --
---------- ---------- -------- ---------- ---------- ---------- ----------
End of period $2,198,100 $2,435,868 $659,221 $1,009,152 $1,212,413 $6,095,277 $1,725,222
========== ========== ======== ========== ========== ========== ==========
<FN>
(1) Period May 1, 1995 (inception) to December 31, 1995
(2) Period May 1, 1996 (inception) to December 31, 1996
</FN>
</TABLE>
See Notes to Financial Statements
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1996 ANNUAL REPORT
4
<PAGE>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
<TABLE>
<CAPTION>
SELECTED PER UNIT DATA AND RATIOS*
FOR EACH YEAR OR PERIOD ENDED DECEMBER 31 GROWTH AGGRESSIVE GROWTH
SUB-ACCOUNT SUB-ACCOUNT
---------------------------------------- ---------------------------------------
1996 1995 1994 1993(1) 1996 1995 1994 1993(1)
------- ------- ------ ------- ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation unit value, beginning
of period $ 13.61 $ 10.55 $10.35 $10.00 $ 17.21 $ 13.62 $11.81 $10.00
------- ------- ------ ------ ------- ------- ------ ------
Income from operations:
Net investment income/(loss) .32 .26 (.04) .03 .07 .15 .08 .01
Net realized and unrealized gain/(loss)
on investments 2.08 2.80 .24 .32 1.17 3.44 1.73 1.80
------- ------- ------ ------ ------- ------- ------ ------
Total income/(loss) from operations 2.40 3.06 .20 .35 1.24 3.59 1.81 1.81
------- ------- ------ ------ ------- ------- ------ ------
Accumulation unit value, end of period $ 16.01 $ 13.61 $10.55 $10.35 $ 18.45 $ 17.21 $13.62 $11.81
======= ======= ====== ====== ======= ======= ====== ======
Total return** 17.61% 29.07% 1.90% 3.50% 7.18% 26.41% 15.35% 18.05%
======= ======= ====== ====== ======= ======= ====== ======
Ratios and supplemental data:
Net assets at end of period
(in thousands) $16,696 $10,125 $4,758 $ 1 $18,820 $11,681 $4,828 $ 1
Ratio of net investment
income/(loss)to average
net assets*** 2.10% 2.08% (.35)% .97% .42% 1.00% .63% .15%
======= ======= ====== ====== ======= ======= ====== ======
</TABLE>
(TABLE RESTUBBED FROM ABOVE)
SELECTED PER UNIT DATA AND RATIOS*
FOR EACH YEAR OR PERIOD ENDED DECEMBER 31 INTERNATIONAL GROWTH
SUB-ACCOUNT
---------------------------
1996 1995 1994(2)
---------------------------
Accumulation unit value, beginning
of period $11.80 $ 9.66 $10.00
------ ------ ------
Income from operations:
Net investment income/(loss) .24 (.06) (.05)
Net realized and unrealized gain/(l
on investments 3.74 2.20 (.29)
------ ------ ------
Total income/(loss) from operations 3.98 2.14 (.34)
------ ------ ------
Accumulation unit value, end of perio $15.78 $11.80 $ 9.66
====== ====== ======
Total return** 33.75% 22.11% (3.35)%
====== ====== ======
Ratios and supplemental data:
Net assets at end of period
(in thousands) $6,156 $1,596 $ 904
Ratio of net investment
income/(loss)to average
net assets*** 1.72% (.66)% (.89)%
====== ====== ======
<TABLE>
<CAPTION>
FOR EACH YEAR OR PERIOD
ENDED DECEMBER 31 WORLDWIDE GROWTH BALANCED HIGH-YIELD
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------------------------------- --------------------------------------- -----------
1996 1995 1994 1993(1) 1996 1995 1994 1993(1) 1996(4)
------- ------- ------ ------- ------ ------ ------ ------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE,
BEGINNING OF PERIOD $ 15.14 $ 11.99 $11.91 $10.00 $13.26 $10.72 $10.72 $10.00 $10.00
------- ------- ------ ------ ------ ------ ------ ------ ------
INCOME FROM OPERATIONS:
Net investment income/(loss) .19 (.04) (.10) .02 .28 .13 .05 .08 .55
Net realized and unrealized
gain/(loss)on investments 4.07 3.19 .18 1.89 1.76 2.41 (.05) .64 .64
------- ------- ------ ------ ------ ------ ------ ------ ------
Total income/(loss) from
operations 4.26 3.15 .08 1.91 2.04 2.54 -- .72 1.19
------- ------- ------ ------ ------ ------ ------ ------ ------
ACCUMULATION UNIT VALUE,
END OF PERIOD $ 19.40 $ 15.14 $11.91 $11.91 $15.30 $13.26 $10.72 $10.72 $11.19
======= ======= ====== ====== ====== ====== ====== ====== ======
Total return** 28.12% 26.29% (.68)% 19.10% 15.36% 23.73% 0.00% 7.20% 11.91%
======= ======= ====== ====== ====== ====== ====== ====== ======
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of
period (in thousands) $23,501 $11,099 $6,738 $ 1 $5,336 $3,283 $2,162 $ 1 $ 659
Ratio of net investment
income/(loss to average
net assets*** 1.12% (.32)% (.86)% .63% 1.98% 1.08% .51% 2.61% 7.88%
======= ======= ====== ====== ====== ====== ====== ====== ======
</TABLE>
(TABLE RESTUBBED FROM ABOVE)
<TABLE>
<CAPTION>
FOR EACH YEAR OR PERIOD ENDED DECEMBER 31 FLEXIBLE INCOME SHORT-TERM BOND
SUB-ACCOUNT SUB-ACCOUNT
-------------------------------------- ------------------------------------
1996 1995 1994 1993(1) 1996 1995 1994 1993(1)
------ ------ ----- ------- ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING
OF PERIOD $12.15 $ 9.90 $10.07 $10.00 $10.90 $10.04 $10.03 $10.00
------ ------ ------ ------ ------ ------ ------ ------
INCOME FROM OPERATIONS:
Net investment income/(loss) .83 .57 .41 .10 .38 .40 .50 .10
Net realized and unrealized
gain/(loss) on investments .19 1.68 (.58) (.03) (.02) .46 (.49) (.07)
------ ------ ------ ------ ------ ------ ------ ------
Total income/(loss) from
operations 1.02 2.25 (.17) .07 .36 .86 .01 .03
------ ------ ------ ------ ------ ------ ------ ------
ACCUMULATION UNIT VALUE,
END OF PERIOD $13.17 $12.15 $ 9.90 $10.07 $11.26 $10.90 $10.04 $10.03
====== ====== ====== ====== ====== ====== ====== ======
Total return** 8.41% 22.81% (1.74)% .70% 3.24% 8.61% .08% .30%
====== ====== ====== ====== ====== ====== ====== ======
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period
(in thousands) $2,198 $2,436 $ 893 $ 1 $1,009 $1,212 $2,437 $ 1
Ratio of net investment
income/(loss) to average
net assets*** 6.75% 5.53% 4.69% 3.43% 3.51% 4.11% 5.35% 3.45%
====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
MONEY MARKET
SUB-ACCOUNT
-----------------
1996 1995(3)
------ -------
ACCUMULATION UNIT VALUE, BEGINNING
OF PERIOD $10.30 $10.00
INCOME FROM OPERATIONS: ------ ------
Net investment income/(loss)
Net realized and unrealized .44 .30
gain/(loss) on investments
Total income/(loss) from -- --
operations ------ ------
ACCUMULATION UNIT VALUE,
END OF PERIOD .44 .44
------ ------
Total return**
$10.74 $10.34
RATIOS AND SUPPLEMENTAL DATA: ====== ======
Net assets at end of period 4.28% 3.03%
(in thousands) ====== ======
Ratio of net investment
income/(loss) to average
net assets*** $6,095 $1,725
4.19% 4.42%
====== ======
*The above table calculates the change for a unit outstanding by using the
average units outstanding throughout each period.
**Not annualized for periods of less than one full year.
***Annualized for periods of less than one 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
(4) Period May 1, 1996 (inception) to December 31, 1996
See Notes to Financial Statements
5
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1996 ANNUAL REPORT
<PAGE>
JANUS RETIRMENT 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 nine investment options referred to as Sub-Accounts:
Growth; Aggressive Growth; International Growth; Worldwide Growth; Balanced;
Flexible Income; High-Yield; 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, 1996, WRL made an initial depositor's equity contribution of $25,000
to the High-Yield Sub-Account for which it received 2,500 units of the
Sub-Account.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
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, 1996. 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 .65% 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 typically
declared and reinvested semiannually, while capital gains distributions are
typically 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, 1996 the equity accounts include net unrealized appreciation
(depreciation) on investments as follows:
SUB-ACCOUNT:
-----------
Growth $2,173,747
Aggressive Growth 702,811
International Growth 619,057
Worldwide Growth 1,749,532
Balanced 728,732
Flexible Income 18,131
High-Yield (8,962)
Short-Term Bond (2,578)
Money Market N/A
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1996 ANNUAL REPORT
6
<PAGE>
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 each of the Sub-Accounts
constituting the Janus Retirement Advantage 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, 1996, 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
/s/ PRICE WATERHOUSE LLP
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PRICE WATERHOUSE LLP
Kansas City, Missouri
January 31, 1997
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1996 ANNUAL REPORT
7
