TABLE OF CONTENTS
WRL SERIES ANNUITY ACCOUNT B
Statements of Assets, Liabilities, and Equity Accounts 2
Statements of Operations 2
Statements of Changes in Equity Accounts 4
Selected Per Unit Data and Ratios 6
Notes to Financial Statements 9
JANUS RETIREMENT ADVANTAGE JUNE 30, 1998 SEMIANNUAL REPORT 1
<PAGE>
<TABLE>
<CAPTION>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
STATEMENTS OF ASSETS, LIABILITIES, AND EQUITY ACCOUNTS
At June 30, 1998
All amounts (except unit value) in thousands
(unaudited)
AGGRESSIVE CAPITAL INTERNATIONAL WORLDWIDE
GROWTH GROWTH APPRECIATION GROWTH GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Shares 1,785 838 389 786 2,038
======= ======= ====== ======= =======
Investment at cost $30,029 $17,318 $5,390 $15,206 $51,280
======= ======= ====== ======= =======
Investment at net asset value $36,960 $20,205 $6,431 $17,447 $58,494
Transfers receivable from
depositor 6 - 5 - 1,994
------- ------- ------ ------- -------
TOTAL ASSETS 36,966 20,205 6,436 17,447 60,488
------- ------- ------ ------- -------
LIABILITIES
Transfers payable to depositor - - - 4 -
------- ------- ------ ------- -------
TOTAL LIABILITIES - - - 4 -
------- ------- ------ ------- -------
NET ASSETS $36,966 $20,205 $6,436 $17,443 $60,448
======= ======= ====== ======= =======
EQUITY ACCOUNTS:
Contract owners' equity:
Units 1,593.0 837.0 388.3 770.4 2,029.0
======= ======= ====== ======= =======
Unit value $ 23.21 $ 24.14 $16.47 $ 22.64 $ 29.81
======= ======= ====== ======= =======
Value $36,966 $20,205 $6,395 $17,443 $60,488
------- ------- ------ ------- -------
Depositor's Equity:
Units - - 2.5 - -
======= ======= ====== ======= =======
Unit value - - $16.47 - -
======= ======= ====== ======= =======
Value - - $ 41 - -
------- ------- ------ ------- -------
TOTAL EQUITY $36,966 $20,205 $6,436 $17,443 $60,488
======= ======= ====== ======= =======
<FN>
(1) Period May 1, 1998, (inception) to June 30, 1998.
</FN>
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the period ended June 30, 1998
All amounts in thousands
(unaudited)
AGGRESSIVE CAPITAL INTERNATIONAL WORLDWIDE
GROWTH GROWTH APPRECIATION GROWTH GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $1,231 - $ 1 $ 264 $ 1,379
Capital gains 1,007 - - 41 590
------ ------ ------ ------ -------
EXPENSES:
Mortality and expense risk
charges 106 $ 62 14 52 171
------ ------ ------ ------ -------
NET INVESTMENT INCOME/(LOSS) 2,132 (62) (13) 253 1,798
------ ------ ------ ------ -------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENT:
Net realized gain/(loss) from
securities transactions 1,058 2,208 125 532 4,965
Change in unrealized
appreciation/(depreciation) 2,436 736 1,053 2,365 5,573
------ ------ ------ ------ -------
NET GAIN/(LOSS) ON INVESTMENT 3,494 2,944 1,178 2,897 10,538
------ ------ ------ ------ -------
NET INCREASE/(DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS $5,626 $2,882 $1,165 $3,150 $12,336
====== ====== ====== ====== =======
<FN>
(1) Period May 1, 1996, (inception) to June 30, 1996.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
JANUS RETIREMENT ADVANTAGE JUNE 30, 1998 SEMIANNUAL REPORT 2
<PAGE>
<TABLE>
<CAPTION>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
STATEMENTS OF ASSETS, LIABILITIES, AND EQUITY ACCOUNTS
At June 30, 1998
All amounts (except unit value) in thousands
(unaudited)
GROWTH FLEXIBLE SHORT-TERM MONEY
BALANCED EQUITY INCOME AND INCOME INCOME HIGH-YIELD BOND MARKET
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT(1) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ------------- -------------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Shares 683 354 156 412 329 249 12,726
======= ====== ====== ====== ====== ====== =======
Investment at cost $11,167 $5,070 $1,563 $4,924 $4,003 $2,308 $12,726
======= ====== ====== ====== ====== ====== =======
Investment at net asset value $13,596 $5,765 $1,646 $4,927 $3,905 $2,175 $12,726
Transfers receivable from
depositor 1 6 34 1 - - -
------- ------ ------ ------ ------ ------ -------
TOTAL ASSETS 13,597 5,771 1,680 4,928 3,905 2,175 12,726
------- ------ ------ ------ ------ ------ -------
LIABILITIES
Transfers payable to depositor - - - - 15 1 1,970
------- ------ ------ ------ ------ ------ -------
TOTAL LIABILITIES - - - - 15 1 1,970
------- ------ ------ ------ ------ ------ -------
NET ASSETS $13,597 $5,771 $1,680 $4,928 $3,890 $2,174 $10,756
======= ====== ====== ====== ====== ====== =======
EQUITY ACCOUNTS:
Contract owners' equity:
Units 625.7 349.6 156.2 320.1 283.5 177.8 936.5
======= ====== ====== ====== ====== ====== =======
Unit value $ 21.73 $16.39 $10.55 $15.39 $13.72 $12.23 $ 11.49
======= ====== ====== ====== ====== ====== =======
Value $13,597 $5,730 $1,648 $4,928 $3,890 $2,174 $10,756
------- ------ ------ ------ ------ ------ -------
Depositor's Equity:
Units - 2.5 3.0 - - - -
======= ====== ====== ====== ====== ====== =======
Unit value - $16.39 $10.55 - - - -
======= ====== ====== ====== ====== ====== =======
Value - $ 41 $ 32 - - - -
------- ------ ------ ------ ------ ------ -------
TOTAL EQUITY $13,597 $5,771 $1,680 $4,928 $3,890 $2,174 $10,756
======= ====== ====== ====== ====== ====== =======
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the period ended June 30, 1998
All amounts in thousands
(unaudited)
GROWTH FLEXIBLE SHORT-TERM MONEY
BALANCED EQUITY INCOME AND INCOME INCOME HIGH-YIELD BOND MARKET
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT(1) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ------------- -------------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 321 $ 73 - $174 $217 $ 85 $289
Capital gains 87 - - 16 - 7 -
------ ---- --- ---- ---- ----- ----
EXPENSES:
Mortality and expense risk
charges 41 15 $ 1 13 12 7 35
------ ---- --- ---- ---- ----- ----
NET INVESTMENT INCOME/(LOSS) 367 58 (1) 177 205 85 254
------ ---- --- ---- ---- ----- ----
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENT:
Net realized gain/(loss) from
securities transactions 586 164 - 78 142 (109) -
Change in unrealized
appreciation/(depreciation) 992 673 83 (53) (133) 75 -
------ ---- --- ---- ---- ----- ----
NET GAIN/(LOSS) ON INVESTMENT 1,578 837 83 25 9 (34) -
------ ---- --- ---- ---- ----- ----
NET INCREASE/(DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS $1,945 $895 $82 $202 $214 $ 51 $254
====== ==== === ==== ==== ===== ====
</TABLE>
JANUS RETIREMENT ADVANTAGE JUNE 30, 1998 SEMIANNUAL REPORT 3
<PAGE>
JANUAS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN EQUITY ACCOUNTS
For the periods ended June 30, 1998,
and December 31, 1997 (all amounts in thousands) GROWTH AGGRESSIVE GROWTH CAPITAL APPRECIATION INTERNATIONAL GROWTH
(unaudited) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------ ----------------- -------------------- --------------------
1998 1997 1998 1997 1998 1997(2) 1998 1997
---- ---- ---- ---- ---- ------- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 2,132 $ 543 $ (62) $ (108) $ (13) $ 3 $ 253 $ 33
Net gain/(loss) on investment 3,494 3,800 2,944 2,261 1,178 29 2,897 1,808
-------- -------- -------- -------- -------- -------- -------- --------
NET INCREASE/(DECREASE) IN EQUITY
ACCOUNTS RESULTING FROM OPERATIONS 5,626 4,343 2,882 2,153 1,165 32 3,150 1,841
-------- -------- -------- -------- -------- -------- -------- --------
EQUITY TRANSACTIONS:
Proceeds from units sold/(redeemed) 2,506 9,793 (2,538) 262 2,677 2,586 (720) 7,762
Less cost of units redeemed:
Administrative charges 7 11 6 12 -- -- 3 4
Surrender benefits 729 1,240 461 895 43 6 250 484
Death benefits -- 11 -- -- -- -- -- 5
-------- -------- -------- -------- -------- -------- -------- --------
INCREASE/(DECREASE) IN EQUITY ACCOUNTS
FROM CAPITAL UNIT TRANSACTIONS 1,770 8,531 (3,005) (645) 2,634 2,580 (973) 7,269
-------- -------- -------- -------- -------- -------- -------- --------
NET INCREASE/(DECREASE) IN EQUITY ACCOUNTS 7,396 12,874 (123) 1,508 3,799 2,612 2,177 9,110
DEPOSITOR'S EQUITY CONTRIBUTION/(REDEMPTION) -- -- -- -- -- 25 -- --
EQUITY ACCOUNTS:
Beginning of period 29,570 16,696 20,328 18,820 2,637 -- 15,266 6,156
-------- -------- -------- -------- -------- -------- -------- --------
End of period $ 36,966 $ 29,570 $ 20,205 $ 20,328 $ 6,436 $ 2,637 $ 17,443 $ 15,266
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN EQUITY ACCOUNTS
For the periods ended June 30, 1998,
and December 31, 1997 (all amounts in thousands) WORLDWIDE GROWTH BALANCED EQUITY INCOME GROWTH AND INCOME
(unaudited) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------- ----------- ------------- -----------------
1998 1997 1998 1997 1998 1997(2) 1998(1)
---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 1,798 $ 384 $ 367 $ 232 $ 58 $ (2) $ (1)
Net gain/(loss) on investment 10,536 6,524 1,578 1,303 837 119 83
------- ------- ------- ------- ------- ------- -------
NET INCREASE/(DECREASE) IN EQUITY
ACCOUNTS RESULTING FROM OPERATIONS 12,336 6,908 1,945 1,535 895 117 82
------- ------- ------- ------- ------- ------- -------
EQUITY TRANSACTIONS:
Proceeds from units sold/(redeemed) 4,915 14,687 544 4,797 1,849 2,945 1,580
Less cost of units redeemed:
Administrative charges 9 13 3 4 -- -- --
Surrender benefits 908 927 176 377 21 39 12
Death benefits -- 2 -- -- -- -- --
------- ------- ------- ------- ------- ------- -------
INCREASE/(DECREASE) IN EQUITY ACCOUNTS
FROM CAPITAL UnitTransactions 3,998 13,745 365 4,416 1,828 2,906 1,568
------- ------- ------- ------- ------- ------- -------
NET INCREASE/(DECREASE) IN EQUITY ACCOUNTS 16,334 20,653 2,310 5,951 2,723 3,023 1,650
DEPOSITOR'S EQUITY CONTRIBUTION/(REDEMPTION) -- -- -- -- -- 25 30
EQUITY ACCOUNTS:
Beginning of period 44,154 23,501 11,287 5,336 3,048 -- --
------- ------- ------- ------- ------- ------- -------
End of period $60,488 $44,154 $13,597 $11,267 $ 5,771 $ 3,048 $ 1,680
======= ======= ======= ======= ======= ======= =======
<FN>
(1) Period May 1, 1998, (inception) to June 30, 1998.
(2) Period May 1, 1997, (inception) to Decernber 31, 1997.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
JANUS RETIREMENT ADVANTAGE JUNE 30, 1998 SEMIANNUAL REPORT 4
<PAGE>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN EQUITY ACCOUNTS
For the periods ended June 30, 1998,
and December 31, 1997 (all amounts in thousands) FLEXIBLE INCOME HIGH-YIELD SHORT-TERM BOND MONEY MARKET
(unaudited) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------- ----------- --------------- ------------
1998 1997 1998 1997 1998 1997 1998 1997
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 177 $ 172 $ 205 $ 107 $ 85 $ 241 $ 254 $ 352
Net gain/(loss) on investment 25 123 9 93 (34) (168) -- --
------- ------- ------- ------- ------- ------- ------- -------
NET INCREASE/(DECREASE) IN EQUITY
ACCOUNTS RESULTING FROM OPERATIONS 202 295 214 200 51 73 254 352
------- ------- ------- ------- ------- ------- ------- -------
EQUITY TRANSACTIONS:
Proceeds from units sold/(redeemed) 1,261 1,358 861 2,180 739 506 9,621 1,680
Less cost of units redeemed:
Administrative charges 1 1 -- -- -- 1 1 1
Surrender benefits 196 188 98 98 138 61 6,487 757
Death benefits -- -- -- -- -- 4 -- --
INCREASE/(DECREASE) IN EQUITY ACCOUNTS
FROM CAPITAL UNIT TRANSACTIONS 1,064 1,169 763 2,082 601 440 3,133 922
------- ------- ------- ------- ------- ------- ------- -------
NET INCREASE/(DECREASE) IN EQUITY ACCOUNTS 1,266 1,464 977 2,282 652 513 3,387 1,274
DEPOSITOR'S EQUITY CONTRIBUTION/(REDEMPTION) -- -- -- (28) -- -- -- --
EQUITY ACCOUNTS:
Beginning of period 3,662 2,198 2,913 659 1,522 1,009 7,369 6,095
------- ------- ------- ------- ------- ------- ------- -------
End of period $ 4,928 $ 3,662 $ 3,890 $ 2,913 $ 2,174 $ 1,522 $10,756 $ 7,369
======= ======= ======= ======= ======= ======= ======= =======
</TABLE>
The notes to the financial statements are an integral part of this report.
JANUS RETIREMENT ADVANTAGE JUNE 30, 1998 SEMIANNUAL REPORT 5
<PAGE>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
<TABLE>
<CAPTION>
SELECTED PER UNIT DATA AND RATIOS*
GROWTH
For each year or period ended December 31 SUB-ACCOUNT
and the period ended June 30, 1998 (unaudited) 1998 1997 1996 1995 1994 1993(1)
---- ---- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING OF PERIOD $ 19.52 $ 16.01 $ 13.61 $ 10.55 $ 10.35 $ 10.00
------- ------- ------- ------- ------- -------
INCOME FROM OPERATIONS:
Net investment income/(loss) 1.39 .42 .32 .26 (.04) .03
Net realized and unrealized gain/(loss) on investment 2.30 3.09 2.08 2.80 .24 .32
------- ------- ------- ------- ------- -------
TOTAL INCOME/(LOSS) FROM OPERATIONS 3.69 3.51 2.40 3.06 .20 .35
------- ------- ------- ------- ------- -------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 23.21 $ 19.52 $ 16.01 $ 13.61 $ 10.55 $ 10.35
======= ======= ======= ======= ======= =======
TOTAL RETURN** 18.86% 21.95% 17.61% 29.07% 1.90% 3.50%
------- ------- ------- ------- ------- -------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $36,966 $29,570 $16,696 $10,125 $ 4,758 $ 1
Ratio of net investment income/(loss) to average net assets*** 12.91% 2.30% 2.10% 2.08% (.35)% .97%
------- ------- ------- ------- ------- -------
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
For each year or period ended December 31 SUB-ACCOUNT
and the period ended June 30, 1998 (unaudited) 1998 1997 1996 1995 1994 1993(1)
---- ---- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING OF PERIOD $ 20.65 $ 18.45 $ 17.21 $ 13.62 $ 11.81 $ 10.00
------- ------- ------- ------- ------- -------
INCOME FROM OPERATIONS:
Net investment income/(loss) (.07) (.12) .07 .15 .08 .01
Net realized and unrealized gain/(loss) on investment 3.56 2.32 1.17 3.44 1.73 1.80
------- ------- ------- ------- ------- -------
TOTAL INCOME/(LOSS) FROM OPERATIONS 3.49 2.20 1.24 3.59 1.81 1.81
------- ------- ------- ------- ------- -------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 24.14 $ 20.65 $ 18.45 $ 17.21 $ 13.62 $ 11.81
======= ======= ======= ======= ======= =======
TOTAL RETURN** 16.90% 11.93% 7.18% 26.41% 15.35% 18.05%
------- ------- ------- ------- ------- -------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $20,205 $20,328 $18,820 $11,681 $4,828 $ 1
Ratio of net investment income/(loss) to average net assets*** (.64)% (.65)% .42% 1.00% .63% .15%
------- ------- ------- ------- ------- -------
</TABLE>
<TABLE>
<CAPTION>
CAPITAL
APPRECIATION
For each year or period ended December 31 SUB-ACCOUNT
and the period ended June 30, 1998 (unaudited) 1998 1997(3)
---- ------
<S> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING OF PERIOD $ 12.61 $ 10.00
------- -------
INCOME FROM OPERATIONS:
Net investment income/(loss) (.04) .03
Net realized and unrealized gain/(loss) on investment 3.90 2.58
------- -------
TOTAL INCOME/(LOSS) FROM OPERATIONS 3.86 2.61
------- -------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 16.47 $ 12.61
======= =======
TOTAL RETURN** 30.66% 26.05%
------- -------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 6,436 $ 2,637
Ratio of net investment income/(loss) to average net assets*** (.59)% .35%
------- -------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL GROWTH
For each year or period ended December 31 SUB-ACCOUNT
and the period ended June 30, 1996 (unaudited) 1998 1997 1996 1995 1994(2)
---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING OF PERIOD $ 18.58 $ 15.78 $ 11.80 $ 9.66 $ 10.00
------- ------- ------- ------- -------
INCOME FROM OPERATIONS:
Net investment income/(loss) .33 .05 .24 (.06) (.05)
Net realized and unrealized gain/(loss) on investment 3.73 2.75 3.74 2.20 (.29)
------ ------- ------- ------- ------
TOTAL INCOME/(LOSS) FROM OPERATIONS 4.06 2.80 3.98 2.14 (.34)
------ ------- ------- ------- ------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 22.64 $ 18.58 $ 15.78 $ 11.80 $ 9.66
======= ======= ======= ======= ======
TOTAL RETURN** 21.83% 17.74% 33.75% 22.ll% (3.35)%
------- ------- ------- ------- ------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $17,443 $15,266 $ 6,156 $ 1,596 $ 904
Ratio of net investment income/(loss) to average net assets*** 3.15% .26% 1.72% (.66)% (.89)%
------- ------- ------- ------- ------
<FN>
*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 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, 1997, (inception) to December 31, 1997.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
JANUS RETIREMENT ADVANTAGE JUNE 30, 1998 SEMIANNUAL REPORT 6
<PAGE>
<TABLE>
<CAPTION>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
SELECTED PER UNIT DATA AND RATIOS*
For each year or period ended December 31 WORLDWIDE GROWTH
and the period ended June 30, 1998 (unaudited) SUB-ACCOUNT
1998 1997 1996 1995 1994 1993(1)
---------- ---------- ---------- ---------- --------- -------
<S> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING OF PERIOD $ 23.55 $ 19.40 $ 15.14 $ 11.99 $ 11.91 $ 10.00
---------- ---------- ---------- ---------- --------- --------
INCOME FROM OPERATIONS:
Net investment income/(loss) .92 .23 .19 (.04) (.10) .02
Net realized and unrealized gain/(loss) on
investment 5.34 3.92 4.07 3.19 .18 1.89
TOTAL INCOME/(LOSS) FROM OPERATIONS 6.26 4.15 4.26 3.15 .08 1.91
---------- ---------- ---------- ---------- --------- --------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 29.81 $ 23.55 $ 19.40 $ 15.14 $ 11.99 $ 11.91
========== ========== ========== ========== ========= =========
TOTAL RETURN** 26.61% 21.36% 28.12% 26.29% .68% 19.10%
---------- ---------- ---------- ---------- --------- --------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 60,488 $ 44,154 $ 23,501 $ 11,099 $ 6,738 $ 1
Ratio of net investment income/(loss) to
average net assets*** 6.76% 1.01% 1.12% (.32)% (.86)% .63%
---------- ---------- ---------- ---------- --------- --------
BALANCED
SUB-ACCOUNT
For each year or period ended December 31
and the period ended June 30, 1998 (unaudited) 1998 1997 1996 1995 1994 1993(1)
---------- ---------- --------- --------- --------- ----------
ACCUMULATION UNIT VALUE, BEGINNING OF PERIOD $ 18.56 $ 15.30 $ 13.26 $ 10.72 $ 10.72 $ 10.00
---------- ---------- --------- --------- --------- ----------
INCOME FROM OPERATIONS:
Net investment income/(loss) .59 .49 .28 .13 .05 .08
Net realized and unrealized gain/(loss) on
investment 2.58 2.77 1.76 2.41 (.05) .64
---------- ---------- --------- --------- --------- ----------
TOTAL INCOME/(LOSS) FROM OPERATIONS 3.17 3.26 2.04 2.54 -- .72
---------- --------- --------- --------- --------- ----------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 21.73 $ 18.56 $ 15.30 $ 13.26 $ 10.72 $ 10.72
========== ========== ========= ========= ========= ==========
TOTAL RETURN** 17.07% 21.31% 15.36% 23.73% 0.00% 7.20%
---------- ---------- --------- --------- --------- ----------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 13,597 $ 11,287 $ 5,336 $ 3,283 $ 2,162 $ 1
Ratio of net investment income/(loss) to
average net assets*** 5.87% 2.84% 1.98% 1.08% .51% 2.61%
---------- ---------- --------- --------- --------- ----------
EQUITY INCOME
SUB-ACCOUNT
For each year or period ended December 31
and the period ended June 30, 1998 (unaudited) 1998 1997(2)
--------- ---------
ACCUMULATION UNIT VALUE, BEGINNING OF PERIOD $ 13.41 $ 10.00
--------- ---------
INCOME FROM OPERATIONS:
Net investment income/(loss) .18 (.03)
Net realized and unrealized gain/(loss) on
investment 2.80 3.44
--------- ---------
TOTAL INCOME/(LOSS) FROM OPERATIONS 2.98 3.41
--------- ---------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 16.39 $ 13.41
========= =========
TOTAL RETURN** 22.21% 34.12%
--------- ---------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 5,771 $ 3,048
Ratio of net investment income/(loss) to
average net assets*** 2.42% (.32)%
--------- ---------
GROWTH AND INCOME
For each year or period ended December 31 SUB-ACCOUNT
and the period ended June 30, 1998 (unaudited) 1998(3)
---------
ACCUMULATION UNIT VALUE, BEGINNING OF PERIOD $ 10.00
---------
INCOME FROM OPERATIONS:
Net investment income/(loss) (.01)
Net realized and unrealized gain/(loss) on
investment .56
---------
TOTAL INCOME/(LOSS FROM OPERATIONS .55
---------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 10.55
=========
TOTAL RETURN** 5.49%
---------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 1,680
Ratio of net investment income/(loss) to
average net assets*** (.64)%
---------
<FN>
* 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 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 1, 1997, (inception) to December 31, 1997.
(3) Period May 1, 1998, (inception) to June 30, 1998.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
JANUS RETIREMENT ADVANTAGE JUNE 30, 1998 SEMIANNUAL REPORT 7
<PAGE>
<TABLE>
<CAPTION>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
SELECTED PER UNIT DATA AND RATIOS*
FLEXIBLE INCOME
For each year or period ended December 31 SUB-ACCOUNT
and the period ended June 30, 1998 (unaudited) 1998 1997 1996 1995 1994 1993(1)
--------- --------- --------- --------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING OF PERIOD
INCOME FROM OPERATIONS: $ 14.63 $ 13.17 $ 12.15 $ 9.90 $ 10.07 $10.00
--------- --------- --------- --------- ------- ------
Net investment income/(loss) .66 .88 .83 .57 .41 .10
Net realized and unrealized gain/(loss)
on investment .10 .58 .19 1.68 (.58) (.03)
--------- --------- --------- --------- ------- ------
TOTAL INCOME/(LOSS) FROM OPERATIONS .76 1.46 1.02 2.25 (.17) .07
--------- --------- --------- --------- ------- ------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 15.39 $ 14.63 $ 13.17 $ 12.15 $ 9.90 $10.07
========= ========= ========= ========= ======= ======
TOTAL RETURN** 5.23% 11.04% 8.41% 22.81% (1.74)% .70%
--------- --------- --------- --------- ------- ------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 4,928 $ 3,662 $ 2,198 $ 2,436 $ 893 $ 1
Ratio of net investment income/(loss) to
average net assets*** 8.74% 6.33% 6.75% 5.53% 4.69% 3.43%
--------- --------- --------- --------- ------- ------
HIGH-YIELD
For each year or period ended December 31 SUB-ACCOUNT
and the period ended June 30, 1996 (unaudited) 1998 1997 1996(3)
--------- --------- -------
ACCUMULATION UNIT VALUE, BEGINNING OF PERIOD $ 12.90 $ 11.19 $ 10.00
--------- --------- -------
INCOME FROM OPERATIONS:
Net investment income/(loss) .74 .90 .55
Net realized and unrealized gain/(loss)
on investment .08 .81 .64
--------- --------- -------
TOTAL INCOME/(LOSS) FROM OPERATIONS .82 1.71 1.19
--------- --------- -------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 13.72 $ 12.90 $ 11.19
========= ========= =======
TOTAL RETURN** 6.40% 15.22% 11.91%
--------- --------- -------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 3,890 $ 2,913 $ 659
Ratio of net investment income/(loss) to
average net assets*** 10.92% 7.37% 7.88%
--------- --------- -------
SHORT-TERM BOND
For each year or period ended December 31 SUB-ACCOUNT
and the period ended June 30, 1998 (unaudited) 1998 1997 1996 1995 1994 1993(1)
--------- --------- --------- --------- --------- ------
ACCUMULATION UNIT VALUE, BEGINNING OF PERIOD $ 11.93 $ 11.26 $ 10.90 $ 10.04 $ 10.03 $10.00
--------- --------- --------- --------- --------- ------
INCOME FROM OPERATIONS:
Net investment income/(loss) .45 2.23 .38 .40 .50 .10
Net realized and unrealized gain/(loss)
on investment (.15) (1.56) (.02) .46 (.49) (.07)
--------- --------- --------- --------- --------- ------
TOTAL INCOME/(LOSS) FROM OPERATIONS .30 .67 .36 .86 .01 .03
--------- --------- --------- --------- --------- ------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 12.23 $ 11.93 $ 11.26 $ 10.90 $ 10.04 10.03
========= ========= ========= ========= ========= ======
TOTAL RETURN** 2.45% 6.03% 3.24% 8.61% .08% .30%
--------- --------- --------- --------- --------- ------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 2,174 $ 1,522 $ 1,009 $ 1,212 $ 2,437 $ 1
Ratio of net investment income/(loss) to
average net assets*** 7.41% 19.19% 3.51% 4.11% 5.35% 3.45%
--------- --------- --------- --------- --------- ------
MONEY MARKET
For each year or period ended December 31 SUB-ACCOUNT
and the period ended June 30, 1998 (unaudited) 1998 1997 1996 1995(2)
---------- --------- --------- ---------
ACCUMULATION UNIT VALUE, BEGINNING OF PERIOD $ 11.23 $ 10.74 $ 10.30 $ 10.00
---------- --------- --------- ---------
INCOME FROM OPERATIONS:
Net investment income/(loss) .26 .49 .44 .30
Net realized and unrealized gain/(loss)
on investment -- -- -- --
---------- --------- --------- ---------
TOTAL INCOME/(LOSS) FROM OPERATIONS .26 .49 .44 .30
---------- --------- --------- ---------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 11.49 $ 11.23 $ 10.74 $ 10.30
========== ========= ========= =========
TOTAL RETURN** 2.30% 4.49% 4.28% 3.03%
---------- --------- --------- ---------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 10,756 $ 7,369 $ 6,095 $ 1,725
Ratio of net investment income/(loss
to average net assets*** 4.58% 4.43% 4.19% 4.42%
---------- --------- --------- ---------
<FN>
* 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 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 1, 1995, (inception) to December 31, 1995.
(3) Period May 1, 1996, (inception) to December 31, 1996.
</FN>
</TABLE>
The notes to the financial statements are an integral part of this report.
JANUS RETIREMENT ADVANTAGE JUNE 30, 1998 SEMIANNUAL REPORT 8
<PAGE>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
NOTES TO FINANCIAL STATEMENTS JUNE 30, 1998 (UNAUDITED)
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, a tax-deferred variable annuity contract (the
"Contracts") issued by WRL. The Account contains twelve investment options
referred to as Sub-Accounts: Growth, Aggressive Growth, Capital Appreciation,
International Growth, Worldwide Growth, Balanced, Equity Income, Growth and
Income, Flexible Income, High-Yield, Short-Term Bond, and Money Market. Each
Sub-Account invests in the corresponding Portfolio of the Janus Aspen Series
Trust (collectively referred to as the "Trust" 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, 1998, WRL made an initial depositor's equity contribution of
$30,000 to the Growth and Income Sub-Account for which it received 3,000 units.
Janus Retirement Advantage sub-accounts hold assets to support the benefits
under certain flexible-payment variable accumulation deferred-annuity contracts
issued by WRL. The Annuity Account 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
The investments in the trust's shares are stated at the closing net asset
value ("NAV") per share as determined by the Trust. Investment transactions are
accounted for on the trade date, using the Portfolio 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.
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.
3. DIVIDENDS AND DISTRIBUTIONS
Dividends of the Trust's Money Market Portfolio are declared daily and
reinvested monthly. Dividends of the remaining Portfolios are typically declared
and reinvested semiannually, while capital gains distributions are typically
declared and reinvested annually. Dividends and distributions of the Portfolios
on the ex-date are recorded and are generally paid to and reinvested by the
Annuity Account on the next business day after the ex-date. Dividends are not
declared by the Annuity Account, since the increase in the value of the
underlying investment in the Portfolio is reflected daily in the unit price used
to calculate the equity value within the Annuity Account. Consequently, a
dividend distribution by the underlying Portfolio does not change either the
unit price or equity values within the Annuity Accounts.
JANUS RETIREMENT ADVANTAGE JUNE 30, 1998 SEMIANNUAL REPORT 9
<PAGE>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED) ALL AMOUNTS IN THOUSANDS.
4. SECURITIES TRANSACTIONS
Securities transactions are summarized as follows:
FOR THE PERIOD ENDED JUNE 30, 1998
PURCHASES PROCEEDS FROM SALES
SUB-ACCOUNT OF SECURITIES OF SECURITIES
- ----------- ---------------- -------------------
Growth $ 7,095 $ 2,908
------- -------
Aggressive Growth 8,530 11,449
------- -------
Capital Appreciation 3,876 1,221
------- -------
International Growth 11,298 12,380
------- -------
Worldwide Growth 42,924 39,509
------- -------
Balanced 2,563 1,791
------- -------
Equity Income 3,413 1,476
------- -------
Growth and Income(1) 1,634 71
------- -------
Flexible Income 2,651 1,345
------- -------
High-Yield 3,031 2,709
------- -------
Short-Term Bond 1,483 796
------- -------
Money Market 63,340 56,857
------- -------
(1) Period May 1, 1998, (inception) to June 30, 1998.
<TABLE>
<CAPTION>
5. UNIT ACTIVITY
FOR THE PERIOD ENDED JUNE 30, 1998
UNITS UNITS
BALANCE UNITS UNITS BALANCE
SUB-ACCOUNT BEGINNING OF YEAR ISSUED REDEEMED END OF YEAR
- ----------- ----------------- ------ -------- -----------
<S> <C> <C> <C> <C>
Growth 1,514.5 345.8 267.3 1,593.0
------- ------- ------- -------
Aggressive Growth 984.4 430.8 578.2 837.0
------- ------- ------- -------
Capital Appreciation 209.2 306.7 125.1 390.8
------- ------- ------- -------
International Growth 821.4 668.8 719.8 770.4
------- ------- ------- -------
Worldwide Growth 1,875.2 2,014.6 1,860.8 2,029.0
------- ------- ------- -------
Balanced 608.1 156.6 139.0 625.7
------- ------- ------- -------
Equity Income 227.2 282.5 157.6 352.1
------- ------- ------- -------
Growth and Income(1) -- 172.3 13.1 159.2
------- ------- ------- -------
Flexible Income 250.3 213.1 143.3 320.1
------- ------- ------- -------
High-Yield 225.9 288.2 230.6 283.5
------- ------- ------- -------
Short-Term Bond 127.5 119.9 69.6 177.8
------- ------- ------- -------
Money Market 656.4 6,653.4 6,373.3 936.5
------- ------- ------- -------
<FN>
(1) Period May 1, 1998, (inception) to June 30, 1998.
</FN>
</TABLE>
JANUS RETIREMENT ADVANTAGE JUNE 30, 1998 SEMIANNUAL REPORT 10
<PAGE>
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED) ALL AMOUNTS IN THOUSANDS.
6. OTHER MATTERS
At June 30, 1998, the equity accounts include net unrealized appreciation
(depreciation) on investments as follows:
SUB-ACCOUNT
- -----------
Growth $ 6,931
Aggressive Growth 2,887
Capital Appreciation 1,041
International Growth 2,241
Worldwide Growth 7,214
Balanced 2,429
Equity Income 695
Growth and Income 83
Flexible Income 3
High-Yield (98)
Short-Term Bond (133)
Money Market N/A
JANUS RETIREMENT ADVANTAGE JUNE 30, 1998 SEMIANNUAL REPORT 11
<PAGE>
THIS SPACE RESERVED FOR YOUR NOTES AND COMPUTATIONS.
JANUS RETIREMENT ADVANTAGE JUNE 30, 1998 SEMIANNUAL REPORT 12
