Janus Retirement Advantage
Variable Annuity Issued by Western Reserve Life Assurance Co. of Ohio, Largo, FL
1997 ANNUAL REPORT
[LOGO)
<PAGE>
WRL SERIES ANNUITY ACCOUNT B
- ----------------------------
Statements of Operations 2
Statements of Assets, Liabilities and Equity Accounts 2
Statements of Changes in Equity Accounts 4
Selected Per Unit Data and Ratios 6
Notes to Financial Statements 8
Report of Independent Accountants 10
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1997 ANNUAL REPORT
1
<PAGE>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
STATEMENTS OF ASSETS, LIABILITIES,AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
AGGRESSIVE CAPITAL INTERNATIONAL WORLDWIDE
GROWTH GROWTH APPRECIATION GROWTH GROWTH
As of December 31, 1997 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- -------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Shares 1,584,351,353 981,961,758 205,865,421 845,897,297 1,904,285.342
============== ============== ============== ============== ===============
Investments at cost $24,784,325 $18,028,820 $2,609,570 $15,755,685 $42,899,820
============== ============== ============== ============== ===============
Investments at net asset value $29,278,813 $20,179,315 $2,598,022 $15,632,182 $44,541,234
Accrued transfers from/(to) depositor - net 291,189 149,057 39,194 (366,624) (387,161)
-------------- -------------- -------------- -------------- ---------------
Total assets $29,570,002 20,328,372 $2,637,216 $15,265,558 $44,154,073
-------------- -------------- -------------- -------------- ---------------
LIABILITIES; -- -- -- -- --
-------------- -------------- -------------- -------------- ---------------
Net assets $29,570,002 $20,328,372 $2,637,216 $15,265,558 $44,154,073
============== ============== ============== ============== ===============
EQUITY ACCOUNTS:
Contract owners' equity:
Units 1,514,530.3792 984,381.1411 206,716.6848 821,409.1991 1,875,176.1461
============== ============== ============== ============== ===============
Unit value $19.524205 $20.650916 $12.605192 $18.584596 $23.546627
============== ============== ============== ============== ===============
Value $29,570,002 $20,328,372 S2,605,703 $15,265,558 $44,154,073
-------------- -------------- -------------- -------------- ---------------
Depositor's equity:
Units -- -- 2,500,000 -- --
============== ============== ============== ============== ===============
Unit value -- -- 12.605192 -- --
============== ============== ============== ============== ===============
Value -- -- 31,513 -- --
-------------- -------------- -------------- -------------- ---------------
Total equity $29,570,002 $20,328,372 $2,637,216 $15,265,558 $44,154,073
============== ============== ============== ============== ===============
</TABLE>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
STATEMENTS OF ASSETS, LIABILITIES,AND EQUITY ACCOUNTS
<TABLE>
<CAPTION>
FLEXIBLE SHORT-TERM MONEY
BALANCED EQUITY INCOME INCOME HIGH-YIELD BOND MARKET
As of December 31, 1997 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
- ----------------------- ------------ ------------- ----------- ------------ ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Shares 643,777.043 222,118.876 305,303.905 303,312.102 171,389.076 6,242,688.860
============ ============ ============ ============ ============ =============
Investments at cost $9,809,254 $2,968,707 $3,540,092 $3,538,617 $1,729,617 $6,242,689
============ ============ ============ ============ ============ =============
Investments at net asset value $11,246,785 $2,989,720 $3,596,480 $3,573,017 $1,521,935 $6,242,689
Accrued transfers from/(to)
depositor - net 40,120 57,896 65,190 (660,469) -- 1,126,132
------------ ------------ ------------ ------------ ------------ -------------
Total assets 11,286,905 3,047,616 3,661,670 2,912,548 1,521,935 7,368,821
------------- ------------ ------------ ------------ ------------ -------------
LIABILITIES; -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ -------------
Net assets 11,286,905 3,047,616 3,661,670 2,912,548 1,521,935 7,368,821
============ ============ ============ ============ ============ =============
EQUITY ACCOUNTS:
Contract owners' equity:
Units 608,080.4668 224,737.1962 250,305.0692 225,866.4190 127,534.6001 656,381.665
============ ============ ============ ============ ============ =============
Unit value $18.561532 $13.411608 $14.628828 $12.895002 $11.933507 $11.226427
============ ============ ============ ============ ============ =============
Value $11,286,905 $3,014,087 $3,661,670 $2,912,548 $1,521,935 $7,368,821
------------ ------------ ------------ ------------ ------------ -------------
Depositor's equity:
Units -- 2,500.0000 -- -- -- --
------------ ------------ ------------ ------------ ------------ -------------
Unit value -- 13.411608 -- -- -- --
Value -- 33,529 -- -- -- --
------------ ------------ ------------ ------------ ------------ -------------
Total equity $11,286,905 $3,047,616 $3,661,670 $2,912,548 $1,521,935 $7,368,821
============ ============ ============ ============ ============ =============
</TABLE>
JANUS RETIREMENT ADVANTAGE DECEMBER 31,1997 ANNUAL REPORT
2
<PAGE>
<TABLE>
<CAPTION>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
STATEMENTS OF OPERATIONS
AGGRESSIVE CAPITAL INTERNATIONAL
For the year or period ended GROWTH GROWTH APPRECIATION GROWTH
December 31, 1997 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT(1) SUB-ACCOUNT
----------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 365,450 -- $ 8,192 $ 95,784
Capital gains 329,756 -- -- 19,913
----------- ----------- ----------- -----------
EXPENSES:
Mortality and expense risk charges 152,763 $ 108,167 5,340 82,855
----------- ----------- ----------- -----------
Net investment income/(loss) 542,443 (108,167) 2,852 32,842
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from
securities transactions 1 479,545 813,080 41,020 2,550,511
Change in unrealized appreciation/(depreciation) 2,320,741 1,447,684 (11,548) (742,560)
----------- ----------- ----------- -----------
NET GAIN/(LOSS) ON INVESTMENTS 3,800,286 2,260,764 29,472 1,807,951
----------- ----------- ----------- -----------
Net increase/(decrease) in net assets
resulting from operations $ 4,342,729 $ 2,152,597 $ 32,324 $ 1,840,793
=========== =========== =========== ===========
<PAGE>
WORLDWIDE FLEXIBLE
For the year or period ended GROWTH BALANCED EQUITY INCOME INCOME HIGH-YIELD
December 31, 1997 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT(1) SUB-ACCOUNT SUB-ACCOUNT
------------- ---------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 427,145 $ 273,098 $ 2,212 $ 188,887 $ 116,829
Capital gains 203,012 11,585 -- 1,300 --
----------- ----------- ----------- ----------- -----------
EXPENSES:
Mortality and expense risk charges 246,214 52,909 4,394 17,695 9,454
----------- ----------- ----------- ----------- -----------
Net investment income/(loss) 383,943 231,774 (2,172) 172,492 107,375
----------- ----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from
securities transactions 6,632,556 594,287 97,518 84,370 49,208
Change in unrealized appreciation/(depreciation) (108,118) 708,799 21,013 38,257 43,362
----------- ----------- ----------- ----------- -----------
NET GAIN/(LOSS) ON INVESTMENTS 6,524,438 1,303,086 118,531 122,627 92,570
----------- ----------- ----------- ----------- -----------
Net increase/(decrease) in net assets
resulting from operations $ 6,908,381 $ 1,534,860 $ 116,359 $ 295,119 $ 199,945
=========== =========== =========== =========== ===========
SHORT-TERM MONEY
BOND MARKET
SUB-ACCOUNT SUB-ACCOUNT
------------ ------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ 249,557 $ 403,764
Capital gains 107 --
----------- -----------
EXPENSES:
Mortality and expense risk charges 8,194 52,003
----------- -----------
Net investment income/(loss) 241,470 35,761
----------- -----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) on INVESTMENTS:
Net realized gain/(loss) from
securities transactions 36,895 --
Change in unrealized appreciation/(depreciation (205,104) --
----------- -----------
NET GAIN/(LOSS) on INVESTMENTS (168,209) --
----------- -----------
Net increase/(decrease) in net assets
resulting from operations $ 73,261 $ 351,761
=========== ===========
<FN>
- ----------
(1) Period May 1, 1997 (inception) to December 31, 1997.
</FN>
</TABLE>
See notes to financial statements.
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1997 ANNUAL REPORT
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<PAGE>
<TABLE>
<CAPTION>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
STATEMENTS OF CHANGES IN EQUITY ACCOUNTS
For the year or period ended GROWTH AGGRESSIVE GROWTH CAPITAL APPRECIATION
December 31, 1997 and December 31, 1996 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------- ----------------------------- --------------------
1997 1996 1997 1996 1997(1)
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 542,443 $ 286,185 $ (108,167) $ 63,822 $ 2,852
Net gain/(loss) on investments 3,800,286 1,799,612 2,26O,764 875,O2O 29,472
------------ ------------ ------------ ------------ ------------
Net increase/(decrease) in equity
accounts resulting from operations 4,342,729 2,085,797 2,152,597 938,842 32,324
------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Proceeds from units sold/(redeemed) 9,792,532 4,799,761 262,291 6,702,926 2,585,924
Less cost of units redeemed:
Administrative charges 10,747 8,882 12,220 11,557 75
Surrender benefits 1,239,711 304,288 894,332 488,330 5,957
Death benefits 10,820 235 -- 1,357 --
------------ ------------ ------------ ------------ ------------
Increase/(decrease) from equity
transactions 8,531,254 4,486,356 (644,261) 6,201,682 2,579,892
------------ ------------ ------------ ------------ ------------
Net increase/(decrease) in equity accounts 12,873,983 6,572,153 1,508,336 7,140,524 2,612,216
Depositor's equity contribution/(redemption) -- (1,452) -- (1,849) 25,000
EQUITY ACCOUNTS:
Beginning of period 16,696,019 10,125,318 18,820,036 11,681,361 --
------------ ------------ ------------ ------------ ------------
End of period $ 29,570,002 $ 16,696,019 $ 20,328,372 $ 18,820,036 $ 2,637,216
============ ============ ============ ============ ============
INTERNATIONAL GROWTH
SUB-ACCOUNT
---------------------------
1997 1996
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 32,842 $ 60,618
Net gain/(loss) on investments 1,807,951 896,343
------------ ------------
Net increase/(decrease) in equity
accounts resulting from operations 1,840,793 956,961
------------ ------------
EQUITY TRANSACTIONS:
Proceeds from units sold/(redeemed) 7,761,214 3,703,610
Less cost of units redeemed:
Administrative charges 3,888 2,040
Surrender benefits 484,107 63,430
Death benefits 4,726 1,633
------------ ------------
Increase/(decrease) from equity
transactions 7,268,493 3,636,507
------------ ------------
Net increase/(decrease) in equity accounts 9,109,286 4,593,468
Depositor's equity contribution/(redemption) -- (32,804)
EQUITY ACCOUNTS:
Beginning of period 6,156,272 1,595,608
------------ ------------
End of period $ 15,265,558 $ 6,156,272
============ ============
STATEMENTS OF CHANGES IN EQUITY ACCOUNTS
For the year or period ended WORLDWIDE GROWTH BALANCED EQUITY INCOME
December 31, 1997 and December 31, 1996 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------- --------------------------- ------------
1997 1996 1997 1996 1997(1)
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 383,943 $ 190,327 $ 231,774 $ 84,055 $ (2,172)
Net gain/(loss) on investments 6,524,438 3,754,842 1,303,086 534,086 118,531
------------ ------------ ------------ ------------ ------------
Net increase/(decrease) in equity
accounts resulting from operations 6,908,381 3,945,169 1,534,860 618,141 116,359
------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Proceeds from units sold/(redeemed) 14,687,402 8,933,782 4,796,830 1,501,584 2,945,035
Less cost of units redeemed:
Administrative charges 12,511 9,466 3,640 3,148 63
Surrender benefits 927,554 465,167 377,340 61,517 38,715
Death benefits 2,161 1,333 -- 229 --
------------ ------------ ------------ ------------ ------------
Increase/(decrease) from equity transactions 13,745,176 8,457,816 4,415,850 1,436,690 2,906,257
------------ ------------ ------------ ------------ ------------
Net increase/(decrease) in equity accounts 20,653,557 12,402,985 5,950,710 2,054,831 3,022,616
Depositor's equity contribution/(redemption) -- (1,666) -- (1,362) 25,000
EQUITY ACCOUNTS:
Beginning of period 23,500,516 11,099,197 5,336,195 3,282,726 --
------------ ------------ ------------ ------------ ------------
End of period $ 44,154,073 $ 23,500,516 $ 11,286,905 $ 5,336,195 $ 3,047,616
============ ============ ============ ============ ============
FLEXIBLE INCOME
SUB-ACCOUNT
---------------------------
1997 1996
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 172,492 $ 136,562
Net gain/(loss) on investments 122,627 28,685
------------ ------------
Net increase/(decrease) in equity
accounts resulting from operations 295,119 165,247
------------ ------------
EQUITY TRANSACTIONS:
Proceeds from units sold/(redeemed) 1,357,618 (326,493)
Administrative charges 1,137 1,223
Surrender benefits 188,030 73,878
Death benefits -- 224
------------ ------------
Increase/(decrease) from equity transactions 1,168,451 (401,818)
------------ ------------
Net increase/(decrease) in equity accounts 1,463,570 (236,571)
Depositor's equity contribution/(redemption) -- (1,197)
EQUITY ACCOUNTS:
Beginning of period 2 198,100 2,435,868
------------ ------------
End of period $ 3,661,670 $ 2,198,100
============ ============
<FN>
- ----------
(1) Period May 1, 1997 (inception) to December 31, 1997.
</FN>
</TABLE>
See Notes to Financial Statements.
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1997 ANNUAL REPORT
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<PAGE>
<TABLE>
<CAPTION>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
STATEMENTS OF CHANGES IN EQUITY ACCOUNTS
For the year or period ended HIGH-YIELD SHORT-TERM BOND MONEY MARKET
December 31, 1997 and December 31, 1996 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------- -------------------------- ------------------------
1997 1996(1) 1997 1996 1997 1996
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 107,375 $ 18,226 $ 241,470 $ 39,719 $ 351,761 $ 157,414
Net gain/(loss) on investments 92,570 24,534 (168,209) (9,894) -- --
----------- ----------- ----------- ----------- ----------- -----------
Net increase/(decrease) in equity
accounts resulting from operations 199,945 42,760 73,261 29,825 351,761 157,414
----------- ----------- ----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Proceeds from units sold/(redeemed) 2,180,160 591,467 506,376 (173,543) 1,679,951 4,791,643
Less cost of units redeemed:
Administrative charges 192 6 777 883 907 626
Surrender benefits 97,892 -- 61,280 57,578 757,261 552,314
Death benefits -- -- 4,797 -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Increase/(decrease) from equity transactions 2,082,076 591,461 439,522 (232,004) 921,783 4,238,703
----------- ----------- ----------- ----------- ----------- -----------
Net increase/(decrease) in equity accounts 2,282,021 634,221 512,783 (202,179) 1,273,544 4,396,117
Depositor's equity contribution/(redemption) (28,694) 25,000 -- (1,082) -- (26,062)
EQUITY ACCOUNTS:
Beginning of period 659,221 -- 1,009,152 1,212,413 6,095,277 1,725,222
----------- ----------- ----------- ----------- ----------- -----------
End of period $ 2,912,548 $ 659,221 $ 1,521,935 $ 1,009,152 $ 7,368,821 $ 6,095,277
=========== =========== =========== =========== =========== ===========
<FN>
- ----------
(1) Period May 1, 1996 (inception) to December 31, 1996.
</FN>
</TABLE>
See Notes to Financial Statements.
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1997 ANNUAL REPORT
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<PAGE>
<TABLE>
<CAPTION>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
SELECTED PER UNIT DATA AND RATIOS*
GROWTH AGGRESSIVE GROWTH
For each year or period ended December 31 SUB-ACCOUNT SUB-ACCOUNT
------------------------------------------ --------------------------------------------
1997 1996 1995 1994 1993(1) 1997 1996 1995 1994 1993(1)
------ ------ ------ ------ ------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ACCUMULATION unit VALUE, BEGINNING
OF PERIOD $ 16.01 $ 13.61 $10.55 $10.35 $10.00 $ 18.45 $ 17.21 $ 13.62 $11.81 $10.00
------- ------- ------ ------ ------ ------- ------- ------- ------ ------
INCOME FROM OPERATIONS:
Net investment income/(loss) .42 .32 .26 (.04) .03 (.12) .07 .15 .08 .01
Net realized and unrealized gain/(loss)
on investments 3.09 2.08 2.80 .24 .32 2.32 1.17 3.44 1.73 1.80
------- ------- ------ ------ ------ ------- ------- ------- ------ ------
Total income/(loss) from operations 3.51 2.40 3.06 .20 .35 2.20 1.24 3.59 1.81 1.81
------- ------- ------ ------ ------ ------- ------- ------- ------ ------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 19.52 $ 16.01 $13.61 $10.55 $10.35 $ 20.65 $ 18.45 $ 17.21 $13.62 $11.81
======= ======= ====== ====== ====== ======= ======= ======= ====== ======
Total return** 21.95% 17.61% 29.07% 1.90% 3.50% 11.93% 7.18% 26.41% 15.35% 18.05%
------- ------- ------ ------ ------ ------- ------- ------- ------ ------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period
(in thousands) $29,570 $16,696 $10,125 $4,758 $ l $20,328 $18,820 $11,681 $4,828 $ 1
Ratio of net investment income/(loss)
to average net assets*** 2.30% 2.10% 2.08% (.35)% .97% (.65)% .42% 1.00% .63% .15%
</TABLE>
<TABLE>
<CAPTION>
CAPITAL
For each year or period ended APPRECIATION INTERNATIONAL GROWTH WORLDWIDE GROWTH
December 31 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ --------------------------------- ------------------------------------------
1997(3) 1997 1996 1995 1994(2) 1997 1996 1995 1994 1993(1)
------------ ------- ------ ------ ------- ------- ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING
OF PERIOD $10.00 $ 15.78 $11.80 $ 9.66 $10.00 $ 19.40 $ 15.14 $ 11.99 $11.91 $10.00
------ ------- ------ ------ ------ ------- ------- ------- ------ ------
INCOME FROM OPERATIONS:
Net investment income/(loss) .03 .05 .24 (.06) (.05) .23 .19 (.04) (.10) .02
Net realized and unrealized gain/(loss)
on investments 2.58 2.75 3.74 2.20 (.29) 3.92 4.07 3.19 .18 1.89
------ ------- ------ ------ ------ ------- ------- ------- ------ ------
Total income/(loss) from operations 2.61 2.80 3.98 2.14 (.34) 4.15 4.26 3.15 .08 1.91
------ ------- ------ ------ ------ ------- ------- ------- ------ ------
ACCUMULATION UNIT VALUE, END OF PERIOD $12.61 $ 18.58 $15.78 $11.80 $ 9.66 $ 23.55 $ 19.40 $ 15.14 $11.99 $11.91
====== ======= ====== ====== ====== ======= ======= ======= ====== ======
Total return** 26.05% 17.74% 33.75% 22.11% (3.35)% 21.36% 28.12% 26.29% .68% 19.10%
------ ------- ------ ------ ------ ------- ------- ------- ------ ------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period
(in thousands) $2,637 $15,266 $6,156 $1,596 $ 904 $44,154 $23,501 $11,099 $6,738 $ 1
Ratio of net investment income/(loss)
average net assets*** .35% .26% 1.72% (.66)% (.89)% 1.01% 1.12% (.32)% (.86)% .63%
</TABLE>
<TABLE>
<CAPTION>
BALANCED EQUITY INCOME
For each year or period ended December 31 SUB-ACCOUNT SUB-ACCOUNT
----------------------------------------------- -------------
1997 1996 1995 1994 1993(1) 1997(3)
------- ------- ------- ------ ------- -------
<S> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING
OF PERIOD $ 15.30 $ 13.26 $ 10.72 $10.72 $10.00 $10.00
------- ------- ------- ------ ------ ------
INCOME FROM OPERATIONS:
Net investment income/(loss) .49 .28 .13 .05 .08 (.03)
Net realized and unrealized gain/(loss)
on investments 2.77 1.76 2.41 (.05) .64 3.44
------- ------- ------- ------ ------ ------
Total income/(loss) from operations 3.26 2.04 2.54 -- .72 3.41
------- ------- ------- ------ ------ ------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 18.56 $ 15.30 $ 13.26 $10.72 $10.72 $13.41
======= ======= ======= ====== ====== ======
Total return** 21.31% 15.36% 23.73% 0.00% 7.20% 34.12%
------- ------- ------- ------ ------ ------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period
(in thousands) $11,287 $ 5,336 $ 3,283 $2,162 $ 1 $3,048
Ratio of net investment income/(loss)
to average net assets*** 2.84% 1.98% 1.08% .51% 2.61% (.32)%
</TABLE>
* The above tables calculate the change for a unit outstanding by using the
average units outstanding throughout each period.
** Not annualized for periods of less than 1 full year.
*** 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, 1997 (inception) to December 31, 1997.
See Notes to Financial Statements.
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1997 ANNUAL REPORT
6
<PAGE>
<TABLE>
<CAPTION>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
SELECTED PER UNIT DATA AND RATIOS*
FLEXIBLE INCOME HIGH-YIELD
For each year or period ended December 31 SUB-ACCOUNT SUB-ACCOUNT
---------------------------------------------------- ---------------------
1997 1996 1995 1994 1993(1) 1997 1996(3)
------- ------- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING
OF PERIOD $ 13.17 $ 12.15 $ 9.90 $ 10.07 $ 10.00 $ 11.19 $ 10.00
------- ------- ------- ------- ------- ------- -------
INCOME FROM OPERATIONS:
Net investment income/(loss) .88 .83 .57 .41 .10 .90 .55
Net realized and unrealized gain/(loss)
on investments .58 .19 1.68 (.58) (.03) .81 .64
------- ------- ------- ------- ------- ------- -------
Total income/(loss) from operations 1.46 1.02 2.25 (.17) .07 1.71 1.19
------- ------- ------- ------- ------- ------- -------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 14.63 $ 13.17 $ 12.15 $ 9.90 $ 10.07 $ 12.90 $ 11.19
======= ======= ======= ======= ======= ======= =======
Total return** 11.04% 8.41% 22.81% (1.74)% .70% 15.22% 11.91%
------- ------- ------- ------- ------- ------- -------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period
(in thousands) $ 3,662 $ 2,198 $ 2,436 $ 893 $ 1 $2,913 $ 659
Ratio of net investment income/(loss)
to average net assets*** 6.33% 6.75% 5.53% 4.69% 3.43% 7.37% 7.88%
</TABLE>
<TABLE>
<CAPTION>
SHORT-TERM BOND MONEY MARKET
For each year or period ended December 31 SUB-ACCOUNT SUB-ACCOUNT
------------------------------------------------ ------------------------------
1997 1996 1995 1994 1993(1) 1997 1996 1995(2)
------- ------- ------- ------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING
OF PERIOD $ 11.26 $ 10.90 $ 10.04 $ 10.03 $ 10.00 $ 10.74 $ 10.30 $ 10.00
------- ------- ------- ------- ------- ------- ------- -------
INCOME FROM OPERATIONS:
Net investment income/(loss) 2.23 .38 .40 .50 .10 .49 .44 .30
Net realized and unrealized gain/(loss)
on investments (1.56) (.02) .46 (.49) (.07) -- -- --
------- ------- ------- ------- ------- ------- ------- -------
Total income/(loss) from operations .67 .36 .86 .01 .03 .49 .44 .30
------- ------- ------- ------- ------- ------- ------- -------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 11.93 $ 11.26 $ 10.90 $ 10.04 $ 10.03 $ 11.23 $ 10.74 $ 10.30
======= ======= ======= ======= ======= ======= ======= =======
Total return** 6.03% 3.24% 8.61% .08% .30% 4.49% 4.28% 3.03%
------- ------- ------- ------- ------- ------- ------- -------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period
(in thousands) $ 1,522 $ 1,009 $ 1,212 $ 2,437 $ 1 $ 7,369 $ 6,095 $ 1,725
Ratio of net investment income/(loss)
to average net assets*** 19.19% 3.51% 4.11% 5.35% 3.45% 4.43% 4.19% 4.42%
</TABLE>
* The above tables calculate the change for a unit outstanding by using
the average units outstanding throughout each period.
** Not annualized for periods of less than 1 full year.
*** Annualized for periods of less than 1 full year.
(1) Period September 13, 1993 (inception) to December 31, 1993.
(2) Period May 1, 1995 (inception) to December 31, 1995.
(3) Period May 1, 1996 (inception) to December 31, 1996.
See Notes to Financial Statements.
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1997 ANNUAL REPORT
7
<PAGE>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
NOTES TO FINANCIAL STATEMENTS DECEMBER 31,1997
NOTE 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 ("Trust") under
the Investment Company Act of 1940, as amended. The Account encompasses the
Janus Retirement Advantage, a tax-deferred variable annuity contract (the
"Contracts") issued by WRL. The Account contains eleven investment options
referred to as Sub-Accounts. Each Sub-Account invests in the corresponding
Portfolio of the Janus Aspen Series Trust (collectively referred to as the
"Fund" and individually as a "Portfolio"), which is registered as an open-end
management investment company under the Investment Company Act of 1940, as
amended.
On May 1, 1997, WRL made an initial contribution of $50,000 to the Account.
The amount of the contribution and units received were as follows:
SUB-ACCOUNT CONTRIBUTION UNITS
- -------------------- ------------ -------------
Capital Appreciation $25,000 2,500.000000
Equity Income $25,000 2,500.000000
The Account's equity transactions are accounted for using the appropriate
effective date at the corresponding accumulation unit value.
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 Trust's financial statements.
A. VALUATION OF INVESTMENTS AND SECURITIES TRANSACTIONS
The investments in the Trust's shares are stated at the closing net asset value
("NAV") per share as determined by the Fund on December 31, 1997. Investment
transactions are accounted for on the trade date, using the Fund NAV per share
next determined after receipt of sale or redemption orders 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.
B. 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.
C. ESTIMATES
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
effect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
NOTE 2. CHARGES AND DEDUCTIONS
Charges are assessed by WRL in connection with the issuance and administration
of the Contracts.
A. CONTRACT CHARGES
On each anniversary through the 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.
B. 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.
NOTE 3. DIVIDENDS AND DISTRIBUTIONS
Dividends of the Fund's Money Market Portfolio are declared daily and reinvested
monthly. Dividends of the remaining Fund Portfolios are typically declared and
reinvested semiannually, while capital gains distributions are typically
declared and reinvested annually. Dividends and distributions of the Fund are
generally paid to and reinvested by the Account on the next business day after
the ex-date. Dividends are not declared by the Account because the increase in
value of the underlying investment in the Fund is reflected daily in the unit
price used to calculate the equity value within the Account. Consequently, a
dividend distribution by the underlying fund does not change either the unit
price or equity values within the Account.
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1997 ANNUAL REPORT
8
<PAGE>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 4. SECURITIES TRANSACTIONS
Securities transactions are summarized as follows:
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 1997
PURCHASES OF PROCEEDS FROM SALES
SUB-ACCOUNT LONG-TERM SECURITIES OF LONG-TERM SECURITIES
- ----------------------- ------------------- -----------------------
Growth $12,981,344 $ 4,189,222
Aggressive Growth 17,916,638 18,842,261
Capital Appreciation(1) 2,940,090 371,540
International Growth 27,371,441 19,701,421
Worldwide Growth 50,469,846 35,901,302
Balanced 6,513,802 1,887,763
Equity Income(1) 3,727,836 856,647
Flexible Income 3,336,990 2,047,223
High-Yield 4,097,726 1,271,419
Short-Term Bond 3,046,098 2,362,208
Money Market 67,285,406 67,112,623
(1) Period May 1, 1997 (inception) to December 31, 1997
<TABLE>
<CAPTION>
NOTE 5. EQUITY TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
UNITS UNITS
BALANCE UNITS UNITS BALANCE
SUB-ACCOUNT BEGINNING OF YEAR ISSUED REDEEMED END OF YEAR
- --------------------- ----------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Growth 1,042,859.6844 993,522.4840 521,851.7892 1,514,530.3792
Aggressive Growth 1,020,107.0897 1,242,294.4941 1,278,020.4427 984,381.1411
Capital Appreciation(1) -- 285,252.3760 76,035.6912 209,216.6848
International Growth 390,010.6011 2,044,356.3123 1,612,957.7143 821,409.1991
Worldwide Growth 1,211,235.2007 3,135,720.1340 2,471,779.1886 1,875,176.1461
Balanced 348,749.4610 500,188.3158 240,857.3100 608,080.4668
Equity Income(1) -- 338,534.2546 111,297.0584 227,237.1962
Flexible Income 166,841.2528 282,109.4873 198,645.6709 250,305.0692
High-Yield 58,905.1379 383,919.4188 216,958.1377 225,866.4190
Short-Term Bond 89,662.3361 287,846.7071 249,974.4431 127,534.6001
Money Market 567,317.3363 9,554,325.3890 9,465,261.0597 656,381.6656
<FN>
- ----------
(1) Period May 1, 1997 (inception) to December 31, 1997.
</FN>
</TABLE>
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1997 ANNUAL REPORT
9
<PAGE>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 6. OTHER MATTERS
As of December 31, 1997, the equity accounts include net unrealized appreciation
(depreciation) on investments as follows:
SUB-ACCOUNT:
Growth $ 4,494,488
Aggressive Growth 2,150,495
Capital Appreciation (11,548)
International Growth (123,503)
Worldwide Growth 1,641,414
Balanced 1,437,531
Equity Income 21,013
Flexible Income 56,388
High-Yield 34,400
Short-Term Bond (207,682)
Money Market N/A
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 statement 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, 1997, 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
- ---------------------------
Kansas City, Missouri
January 30, 1998
JANUS RETIREMENT ADVANTAGE DECEMBER 31, 1997 ANNUAL REPORT
10
