Janus Retirement Advantage
<TABLE>
<CAPTION>
Variable Annuity Issued by Western Reseve Life Assurance Co. of Ohio, St. Petersburg, FL
1998 Annual Report
<S> <C>
Janus Aspen Growth Portfolio Janus Aspen Equity Income Portfolio
Janus Aspen Aggressive Growth Portfolio Janus Aspen Growth and Income Portfolio
Janus Aspen Capital Appreciation Portfolio Janus Aspen Flexible Income Portfolio
Janus Aspen International Growth Portfolio Janus Aspen High-Yield Portfolio
Janus Aspen Worldwide Growth Portfolio Janus Aspen Money Market Portfolio
Janus Aspen Balanced Portfolio
</TABLE>
[JANUS LOGO] JANUS
<PAGE>
TABLE OF CONTENTS
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
Statements of Operations.................... 2
Statements of Assets and Liabilities........ 2
Statements of Changes in Net Assets......... 4
Financial Highlights........................ 7
Notes to Financial Statements...............11
Report of Independent Accountants...........12
JANUS ASPEN SERIES
Portfolio Managers' Commentaries and Schedules of Investments
Growth Portfolio..........................14
Aggressive Growth Portfolio...............17
Capital Appreciation Portfolio............20
International Growth Portfolio............23
Worldwide Growth Portfolio................28
Balanced Portfolio........................34
Equity Income Portfolio...................38
Growth and Income Portfolio...............41
Flexible Income Portfolio.................45
High-Yield Portfolio......................50
Money Market Portfolio....................54
Statements of Operations....................56
Statements of Assets and Liabilities........58
Statements of Changes in Net Assets.........60
Financial Highlights........................63
Notes to the Schedules of Investments.......72
Notes to Financial Statements...............73
Explanation of Charts, Tables
and Financial Statements.................78
Report of Independent Accountants...........81
[JANUS LOGO]
<PAGE>
Janus Retirement Advantage WRL Series Annuity Account B
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
AGGRESSIVE CAPITAL
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 1998 GROWTH GROWTH APPRECIATION
(ALL NUMBERS IN THOUSANDS) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Dividends $ 1,249 -- $ 8
Capital gains 1,007 -- --
Total Investment Income 2,256 -- 8
Expenses:
Mortality and expense risk charges 222 $ 126 42
Net Investment Income/(Loss) 2,034 (126) (34)
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions 2,264 2,528 388
Change in net unrealized appreciation/(depreciation) of investments 6,381 3,552 3,061
Net Gain/(Loss) on Investments 8,645 6,080 3,449
Net Increase/(Decrease) in Net Assets Resulting from Operations $10,679 $ 5,954 $ 3,415
<CAPTION>
INTERNATIONAL WORLDWIDE
GROWTH GROWTH BALANCED
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividends $ 274 $ 1,459 $ 520
Capital gains 41 590 87
Total Investment Income 315 2,049 607
Expenses:
Mortality and expense risk charges 102 348 86
Net Investment Income/(Loss) 213 1,701 521
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions 1,001 6,358 1,041
Change in net unrealized appreciation/(depreciation) of investments 926 4,605 2,630
Net Gain/(Loss) on Investments 1,927 10,963 3,671
Net Increase/(Decrease) in Net Assets Resulting from Operations $ 2,140 $12,664 $ 4,192
<CAPTION>
EQUITY GROWTH AND FLEXIBLE
INCOME INCOME INCOME
SUB-ACCOUNT SUB-ACCOUNT(1) SUB-ACCOUNT
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividends $ 83 $ 7 $ 338
Capital gains -- -- 16
Total Investment Income 83 7 354
Expenses:
Mortality and expense risk charges 38 10 32
Net Investment Income/(Loss) 45 (3) 322
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions 307 (1) 142
Change in net unrealized appreciation/(depreciation) of investments 1,975 616 (101)
Net Gain/(Loss) on Investments 2,282 615 41
Net Increase/(Decrease) in Net Assets Resulting from Operations $2,327 $ 612 $ 363
<CAPTION>
HIGH-YIELD MONEY MARKET
SUB-ACCOUNT SUB-ACCOUNT
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividends $ 323 $ 767
Capital gains -- --
Total Investment Income 323 767
Expenses:
Mortality and expense risk charges 22 96
Net Investment Income/(Loss) 301 671
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions 43 --
Change in net unrealized appreciation/(depreciation) of investments (299) --
Net Gain/(Loss) on Investments (256) --
Net Increase/(Decrease) in Net Assets Resulting from Operations $ 45 $ 671
</TABLE>
(1) Period May 1, 1998, (inception) to December 31, 1998.
See Notes to Financial Statements.
2 Janus Retirement Advantage / December 31, 1998
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS & LIABILITIES
AGGRESSIVE CAPITAL
AS OF DECEMBER 31, 1998 GROWTH GROWTH APPRECIATION
(ALL NUMBERS IN THOUSANDS, EXCEPT UNIT VALUE) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
Shares 1,846 881 698
Cost $32,580 $18,605 $10,863
Investments at net asset value $43,456 $24,307 $13,912
Transfers receivable from depositor 34 17 239
Total Assets 43,490 24,324 14,151
Liabilities:
Transfers payable to depositor -- -- --
Total Liabilities -- -- --
Net Assets $43,490 $24,324 $14,151
Equity Accounts:
Contract owners' equity $43,490 $24,324 $14,151
Units 1,653 883 715
Accumulation unit value $ 26.31 $ 27.55 $ 19.80
Depositor's equity -- -- --
Units -- -- --
Accumulation unit value -- -- --
Total Equity $43,490 $24,324 $14,151
<CAPTION>
INTERNATIONAL WORLDWIDE
GROWTH GROWTH BALANCED
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
Shares 681 2,011 805
Cost $13,687 $52,256 $14,055
Investments at net asset value $14,489 $58,502 $18,123
Transfers receivable from depositor 48 58 32
Total Assets 14,537 58,560 18,155
Liabilities:
Transfers payable to depositor -- -- --
Total Liabilities -- -- --
Net Assets $14,537 $58,560 $18,155
Equity Accounts:
Contract owners' equity $14,537 $58,560 $18,155
Units 672 1,942 733
Accumulation unit value $ 21.65 $ 30.16 $ 24.76
Depositor's equity -- -- --
Units -- -- --
Accumulation unit value -- -- --
Total Equity $14,537 $58,560 $18,155
<CAPTION>
EQUITY GROWTH AND FLEXIBLE
INCOME INCOME INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
Shares 456 358 560
Cost $6,857 $3,667 $6,804
Investments at net asset value $8,853 $4,283 $6,759
Transfers receivable from depositor 164 43 22
Total Assets 9,017 4,326 6,781
Liabilities:
Transfers payable to depositor -- -- --
Total Liabilities -- -- --
Net Assets $9,017 $4,326 $6,781
Equity Accounts:
Contract owners' equity $9,017 $4,290 $6,781
Units 463 360 428
Accumulation unit value $19.49 $11.93 $15.86
Depositor's equity -- $ 36 --
Units -- 3 --
Accumulation unit value -- $11.93 --
Total Equity $9,017 $4,326 $6,781
<CAPTION>
HIGH-YIELD MONEY MARKET
SUB-ACCOUNT SUB-ACCOUNT
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Shares 273 16,880
Cost $ 3,234 $ 16,880
Investments at net asset value $ 2,969 $ 16,880
Transfers receivable from depositor 10 82
Total Assets 2,979 16,962
Liabilities:
Transfers payable to depositor -- (563)
Total Liabilities -- (563)
Net Assets $ 2,979 $ 16,399
Equity Accounts:
Contract owners' equity $ 2,979 $ 16,399
Units 230 1,395
Accumulation unit value $ 12.97 $ 11.75
Depositor's equity -- --
Units -- --
Accumulation unit value -- --
Total Equity $ 2,979 $ 16,399
</TABLE>
See Notes to Financial Statements.
Janus Retirement Advantage / December 31, 1998 3
<PAGE>
Janus Retirement Advantage WRL Series Annuity Account B
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
GROWTH AGGRESSIVE GROWTH
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 SUB-ACCOUNT SUB-ACCOUNT
(ALL NUMBERS IN THOUSANDS) 1998 1997 1998 1997
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) $ 2,034 $ 543 $ (126) $ (108)
Net gain/(loss) on investment 8,645 3,800 6,080 2,261
Net Increase/(Decrease) in Net Assets Resulting from Operations 10,679 4,343 5,954 2,153
Capital Unit Transactions:
Proceeds from units sold/(redeemed) 4,633 9,793 (1,046) 262
Less cost of units redeemed:
Administrative charges 12 11 11 12
Surrender benefits 1,342 1,240 821 895
Death benefits 38 11 80 --
1,392 1,262 912 907
Increase/(Decrease) in Net Assets from Capital Unit Transactions 3,241 8,531 (1,958) (645)
Net Increase/(Decrease) in Net Assets 13,920 12,874 3,996 1,508
Depositor's Equity Contribution/(Redemption) -- -- -- --
Net Assets:
Beginning of period 29,570 16,696 20,328 18,820
End of period $ 43,490 $ 29,570 $ 24,324 $ 20,328
Unit Activity:
Units outstanding - beginning of period 1,515 1,043 984 1,020
Units issued 731 994 636 1,242
Units redeemed (593) (522) (737) (1,278)
Units Outstanding - End of Period 1,653 1,515 883 984
<CAPTION>
CAPITAL APPRECIATION INTERNATIONAL GROWTH
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 SUB-ACCOUNT SUB-ACCOUNT
(ALL NUMBERS IN THOUSANDS) 1998 1997(1) 1998 1997
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) $ (34) $ 3 $ 213 $ 33
Net gain/(loss) on investment 3,449 29 1,927 1,808
Net Increase/(Decrease) in Net Assets Resulting from Operations 3,415 32 2,140 1,841
Capital Unit Transactions:
Proceeds from units sold/(redeemed) 8,256 2,586 (2,277) 7,762
Less cost of units redeemed:
Administrative charges 1 -- 6 4
Surrender benefits 115 6 567 484
Death benefits -- -- 19 5
116 6 592 493
Increase/(Decrease) in Net Assets from Capital Unit Transactions 8,140 2,580 (2,869) 7,269
Net Increase/(Decrease) in Net Assets 11,555 2,612 (729) 9,110
Depositor's Equity Contribution/(Redemption) (41) 25 -- --
Net Assets:
Beginning of period 2,637 -- 15,266 6,156
End of period $ 14,151 $ 2,637 $ 14,537 $ 15,266
Unit Activity:
Units outstanding - beginning of period 209 -- 821 390
Units issued 847 285 855 2,044
Units redeemed (341) (76) (1,004) (1,613)
Units Outstanding - End of Period 715 209 672 821
<CAPTION>
WORLDWIDE GROWTH BALANCED
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 SUB-ACCOUNT SUB-ACCOUNT
(ALL NUMBERS IN THOUSANDS) 1998 1997 1998 1997
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) $ 1,701 $ 384 $ 521 $ 232
Net gain/(loss) on investment 10,963 6,524 3,671 1,303
Net Increase/(Decrease) in Net Assets Resulting from Operations 12,664 6,908 4,192 1,535
Capital Unit Transactions:
Proceeds from units sold/(redeemed) 3,557 14,687 3,051 4,797
Less cost of units redeemed:
Administrative charges 17 13 4 4
Surrender benefits 1,716 927 371 377
Death benefits 82 2 -- --
1,815 942 375 381
Increase/(Decrease) in Net Assets from Capital Unit Transactions 1,742 13,745 2,676 4,416
Net Increase/(Decrease) in Net Assets 14,406 20,653 6,868 5,951
Depositor's Equity Contribution/(Redemption) -- -- -- --
Net Assets:
Beginning of period 44,154 23,501 11,287 5,336
End of period $ 58,560 $ 44,154 $ 18,155 $ 11,287
Unit Activity:
Units outstanding - beginning of period 1,875 1,211 608 349
Units issued 2,522 3,136 407 500
Units redeemed (2,455) (2,472) (282) (241)
Units Outstanding - End of Period 1,942 1,875 733 608
<CAPTION>
EQUITY INCOME GROWTH AND INCOME
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 SUB-ACCOUNT SUB-ACCOUNT
(ALL NUMBERS IN THOUSANDS) 1998 1997(1) 1998(2)
<S> <C> <C> <C>
Operations:
Net investment income/(loss) $ 45 $ (2) $ (3)
Net gain/(loss) on investment 2,282 119 615
Net Increase/(Decrease) in Net Assets Resulting from Operations 2,327 117 612
Capital Unit Transactions:
Proceeds from units sold/(redeemed) 3,792 2,945 3,700
Less cost of units redeemed:
Administrative charges 1 -- --
Surrender benefits 109 39 16
Death benefits -- -- --
110 39 16
Increase/(Decrease) in Net Assets from Capital Unit Transactions 3,682 2,906 3,684
Net Increase/(Decrease) in Net Assets 6,009 3,023 4,296
Depositor's Equity Contribution/(Redemption) (40) 25 30
Net Assets:
Beginning of period 3,048 -- --
End of period $ 9,017 $ 3,048 $ 4,326
Unit Activity:
Units outstanding - beginning of period 227 -- --
Units issued 525 338 517
Units redeemed (289) (111) (154)
Units Outstanding - End of Period 463 227 363
</TABLE>
(1) Period May 1, 1997, (inception) to December 31, 1997.
(2) Period May 1, 1998, (inception) to December 31, 1998.
See Notes to Financial Statements.
4 Janus Retirement Advantage / December 31, 1998
<PAGE>
Janus Retirement Advantage WRL Series Annuity Account B
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
FLEXIBLE INCOME HIGH-YIELD
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 SUB-ACCOUNT SUB-ACCOUNT
(ALL NUMBERS IN THOUSANDS) 1998 1997 1998 1997
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) $ 322 $ 172 $ 301 $ 107
Net gain/(loss) on investment 41 123 (256) 93
Net Increase/(Decrease) in Net Assets Resulting from Operations 363 295 45 200
Capital Unit Transactions:
Proceeds from units sold/(redeemed) 3,049 1,358 123 2,180
Less cost of units redeemed:
Administrative charges 2 1 -- --
Surrender benefits 291 188 102 98
Death benefits -- -- -- --
293 189 102 98
Increase/(Decrease) in Net Assets from Capital Unit Transactions 2,756 1,169 21 2,082
Net Increase/(Decrease) in Net Assets 3,119 1,464 66 2,282
Depositor's Equity Contribution/(Redemption) -- -- -- (28)
Net Assets:
Beginning of period 3,662 2,198 2,913 659
End of period $ 6,781 $ 3,662 $ 2,979 $ 2,913
Unit Activity:
Units outstanding - beginning of period 250 167 226 59
Units issued 541 282 412 384
Units redeemed (363) (199) (408) (217)
Units Outstanding - End of Period 428 250 230 226
<CAPTION>
MONEY MARKET
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 SUB-ACCOUNT
(ALL NUMBERS IN THOUSANDS) 1998 1997
<S> <C> <C>
Operations:
Net investment income/(loss) $ 671 $ 352
Net gain/(loss) on investment -- --
Net Increase/(Decrease) in Net Assets Resulting from Operations 671 352
Capital Unit Transactions:
Proceeds from units sold/(redeemed) 16,471 1,680
Less cost of units redeemed:
Administrative charges 1 1
Surrender benefits 8,111 757
Death benefits -- --
8,112 758
Increase/(Decrease) in Net Assets from Capital Unit Transactions 8,359 922
Net Increase/(Decrease) in Net Assets 9,030 1,274
Depositor's Equity Contribution/(Redemption) -- --
Net Assets:
Beginning of period 7,369 6,095
End of period $ 16,399 $ 7,369
Unit Activity:
Units outstanding - beginning of period 656 567
Units issued 9,807 9,554
Units redeemed (9,068)
Units Outstanding - End of Period 1,395 656
</TABLE>
See Notes to Financial Statements.
Janus Retirement Advantage / December 31, 1998 5
<PAGE>
FINANCIAL HIGHLIGHTS*
<TABLE>
<CAPTION>
GROWTH
SUB-ACCOUNT
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Accumulation Unit Value, Beginning of Period $ 19.52 $ 16.01 $ 13.61 $ 10.55 $ 10.35
Income from Operations:
Net investment income/(loss) 1.30 .42 .32 .26 (.04)
Net realized and unrealized gain/(loss) on investment 5.49 3.09 2.08 2.80 .24
Total Income/(Loss) from Operations 6.79 3.51 2.40 3.06 .20
Accumulation Unit Value, End of Period $ 26.31 $ 19.52 $ 16.01 $ 13.61 $ 10.55
Total Return** 34.78% 21.95% 17.61% 29.07% 1.90%
Ratios and Supplemental Data:
Net Assets at End of Period (in thousands) $ 43,490 $ 29,570 $ 16,696 $ 10,125 $ 4,758
Ratio of Net Investment Income/(Loss) to Average Net Assets*** 5.92% 2.30% 2.10% 2.08% (.35)%
<CAPTION>
AGGRESSIVE GROWTH
SUB-ACCOUNT
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Accumulation Unit Value, Beginning of Period $ 20.65 $ 18.45 $ 17.21 $ 13.62 $ 11.81
Income from Operations:
Net investment income/(loss) (.14) (.12) .07 .15 .08
Net realized and unrealized gain/(loss) on investment 7.04 2.32 1.17 3.44 1.73
Total Income/(Loss) from Operations 6.90 2.20 1.24 3.59 1.81
Accumulation Unit Value, End of Period $ 27.55 $ 20.65 $ 18.45 $ 17.21 $ 13.62
Total Return** 33.39% 11.93% 7.18% 26.41% 15.35%
Ratios and Supplemental Data:
Net Assets at End of Period (in thousands) $ 24,324 $ 20,328 $ 18,820 $ 11,681 $ 4,828
Ratio of Net Investment Income/(Loss) to Average Net Assets*** (.65)% (.65)% .42% 1.00% .63%
<CAPTION>
CAPITAL APPRECIATION
SUB-ACCOUNT
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 1998 1997(1)
<S> <C> <C>
Accumulation Unit Value, Beginning of Period $ 12.61 $ 10.00
Income from Operations:
Net investment income/(loss) (.08) .03
Net realized and unrealized gain/(loss) on investment 7.27 2.58
Total Income/(Loss) from Operations 7.19 2.61
Accumulation Unit Value, End of Period $ 19.80 $ 12.61
Total Return** 57.09% 26.05% Ratios and Supplemental Data:
Net Assets at End of Period (in thousands) $ 14,151 $ 2,637
Ratio of Net Investment Income/(Loss) to Average Net Assets*** (.52)% .35%
</TABLE>
*Per unit information has been computed using average units outstanding
throughout each year.
**Not annualized for periods of less than one full year.
***Annualized for periods of less than one full year.
(1) Period May 1, 1997, (inception) to December 31, 1997.
See Notes to Financial Statements.
6 Janus Retirement Advantage / December 31, 1998
<PAGE>
Janus Retirement Advantage WRL Series Annuity Account B
FINANCIAL HIGHLIGHTS* (CONTINUED)
<TABLE>
<CAPTION>
INTERNATIONAL GROWTH
SUB-ACCOUNT
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 1998 1997 1996 1995 1994(1)
<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) .29 .05 .24 (.06) (.05)
Net realized and unrealized gain/(loss) on investment 2.78 2.75 3.74 2.20 (.29)
Total Income/(Loss) from Operations 3.07 2.80 3.98 2.14 (.34)
Accumulation Unit Value, End of Period $ 21.65 $ 18.58 $ 15.78 $ 11.80 $ 9.66
Total Return** 16.48% 17.74% 33.75% 22.11% (3.35)%
Ratios and Supplemental Data:
Net Assets at End of Period (in thousands) $ 14,537 $ 15,266 $ 6,156 $ 1,596 $ 904
Ratio of Net Investment Income/(Loss) to Average Net Assets*** 1.38% .26% 1.72% (.66)% (.89)%
<CAPTION>
WORLDWIDE GROWTH
SUB-ACCOUNT
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Accumulation Unit Value, Beginning of Period $ 23.55 $ 19.40 $ 15.14 $ 11.99 $ 11.91
Income from Operations:
Net investment income/(loss) .87 .23 .19 (.04) (.10)
Net realized and unrealized gain/(loss) on investment 5.74 3.92 4.07 3.19 .18
Total Income/(Loss) from Operations 6.61 4.15 4.26 3.15 .08
Accumulation Unit Value, End of Period $ 30.16 $ 23.55 $ 19.40 $ 15.14 $ 11.99
Total Return** 28.09% 21.36% 28.12% 26.29% .68%
Ratios and Supplemental Data:
Net Assets at End of Period (in thousands) $ 58,560 $ 44,154 $ 23,501 $ 11,099 $ 6,738
Ratio of Net Investment Income/(Loss) to Average Net Assets*** 3.18% 1.01% 1.12% (.32)% (.86)%
<CAPTION>
BALANCED
SUB-ACCOUNT
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Accumulation Unit Value, Beginning of Period $ 18.56 $ 15.30 $ 13.26 $ 10.72 $ 10.72
Income from Operations:
Net investment income/(loss) .81 .49 .28 .13 .05
Net realized and unrealized gain/(loss) on investment 5.39 2.77 1.76 2.41 (.05)
Total Income/(Loss) from Operations 6.20 3.26 2.04 2.54 --
Accumulation Unit Value, End of Period $ 24.76 $ 18.56 $ 15.30 $ 13.26 $ 10.72
Total Return** 33.42% 21.31% 15.36% 23.73% 0.00%
Ratios and Supplemental Data:
Net Assets at End of Period (in thousands) $ 18,155 $ 11,287 $ 5,336 $ 3,283 $ 2,162
Ratio of Net Investment Income/(Loss) to Average Net Assets*** 3.85% 2.84% 1.98% 1.08% .51%
</TABLE>
*Per unit information has been computed using average units outstanding
throughout each year.
**Not annualized for periods of less than one full year.
***Annualized for periods of less than one full year.
(1) Period May 2, 1994, (inception) to December 31, 1994.
See Notes to Financial Statements.
Janus Retirement Advantage / December 31, 1998 7
<PAGE>
FINANCIAL HIGHLIGHTS* (CONTINUED)
<TABLE>
<CAPTION>
EQUITY INCOME
SUB-ACCOUNT
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 1998 1997(1)
<S> <C> <C>
Accumulation Unit Value, Beginning of Period $ 13.41 $ 10.00
Income from Operations:
Net investment income/(loss) .13 (.03)
Net realized and unrealized gain/(loss) on investment 5.95 3.44
Total Income/(Loss) from Operations 6.08 3.41
Accumulation Unit Value, End of Period $ 19.49 $ 13.41
Total Return** 45.30% 34.12% Ratios and Supplemental Data:
Net Assets at End of Period (in thousands) $ 9,017 $ 3,048
Ratio of Net Investment Income/(Loss) to Average Net Assets*** .81% (.32)%
<CAPTION>
GROWTH AND INCOME
SUB-ACCOUNT
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 1998(2)
<S> <C>
Accumulation Unit Value, Beginning of Period $ 10.00
Income from Operations:
Net investment income/(loss) (.01)
Net realized and unrealized gain/(loss) on investment 1.94
Total Income/(Loss) from Operations 1.93
Accumulation Unit Value, End of Period $ 11.93
Total Return** 19.28%
Ratios and Supplemental Data:
Net Assets at End of Period (in thousands) $ 4,326
Ratio of Net Investment Income/(Loss) to Average Net Assets*** (.21)%
<CAPTION>
FLEXIBLE INCOME
SUB-ACCOUNT
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Accumulation Unit Value, Beginning of Period $ 14.63 $ 13.17 $ 12.15 $ 9.90 $ 10.07
Income from Operations:
Net investment income/(loss) .99 .88 .83 .57 .41
Net realized and unrealized gain/(loss) on investment .24 .58 .19 1.68 (.58)
Total Income/(Loss) from Operations 1.23 1.46 1.02 2.25 (.17)
Accumulation Unit Value, End of Period $ 15.86 $ 14.63 $ 13.17 $ 12.15 $ 9.90
Total Return** 8.40% 11.04% 8.41% 22.81% (1.74)%
Ratios and Supplemental Data:
Net Assets at End of Period (in thousands) $ 6,781 $ 3,662 $ 2,198 $ 2,436 $ 893
Ratio of Net Investment Income/(Loss) to Average Net Assets*** 6.47% 6.33% 6.75% 5.53% 4.69%
</TABLE>
*Per unit information has been computed using average units outstanding
throughout each year.
**Not annualized for periods of less than one full year.
***Annualized for periods of less than one full year.
(1) Period May 1, 1997, (inception) to December 31, 1997.
(2) Period May 1, 1998, (inception) to December 31, 1998.
See Notes to Financial Statements.
8 Janus Retirement Advantage / December 31, 1998
<PAGE>
Janus Retirement Advantage WRL Series Annuity Account B
FINANCIAL HIGHLIGHTS* (CONTINUED)
<TABLE>
<CAPTION>
HIGH-YIELD
SUB-ACCOUNT
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 1998 1997 1996(1)
<S> <C> <C> <C>
Accumulation Unit Value, Beginning of Period $ 12.90 $ 11.19 $ 10.00
Income from Operations:
Net investment income/(loss) 1.23 .90 .55
Net realized and unrealized gain/(loss) on investment (1.16) .81 .64
Total Income/(Loss) from Operations .07 1.71 1.19
Accumulation Unit Value, End of Period $ 12.97 $ 12.90 $ 11.19
Total Return** .61% 15.22% 11.91
Ratios and Supplemental Data:
Net Assets at End of Period (in thousands) $ 2,979 $ 2,913 $ 659
Ratio of Net Investment Income/(Loss) to Average Net Assets*** 9.21% 7.37% 7.88%
<CAPTION>
MONEY MARKET
SUB-ACCOUNT
FOR THE YEAR OR PERIOD ENDED DECEMBER 31 1998 1997 1996 1995(2)
<S> <C> <C> <C> <C>
Accumulation Unit Value, Beginning of Period $ 11.23 $ 10.74 $ 10.30 $ 10.00
Income from Operations:
Net investment income/(loss) .52 .49 .44 .30
Net realized and unrealized gain/(loss) on investment -- -- -- --
Total Income/(Loss) from Operations .52 .49 .44 .30
Accumulation Unit Value, End of Period $ 11.75 $ 11.23 $ 10.74 $ 10.30
Total Return** 4.68% 4.49% 4.28% 3.03%
Ratios and Supplemental Data:
Net Assets at End of Period (in thousands) $ 16,399 $ 7,369 $ 6,095 $ 1,725
Ratio of Net Investment Income/(Loss) to Average Net Assets*** 4.55% 4.43% 4.19% 4.42%
</TABLE>
*Per unit information has been computed using average units outstanding
throughout each year.
**Not annualized for periods of less than one full year.
***Annualized for periods of less than one full year.
(1) Period May 1, 1996, (inception) to December 31, 1996.
(2) Period May 1, 1995, (inception) to December 31, 1995.
See Notes to Financial Statements.
Janus Retirement Advantage / December 31, 1998 9
<PAGE>
Notes to Financial Statements
1. ORGANIZATION AND 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 eleven investment options referred to as Sub-Accounts. Each
Sub-Account invests in the corresponding portfolio ("Portfolio") of
Janus Aspen Series (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, 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.
On September 28, 1998, pursuant to an exemptive order (Rel. No.
IC-23417) received from the Securities and Exchange Commission for the
substitution of securities issued by the Trust and held by the Account
to support individual flexible premium deferred variable annuity
contracts, investments were transferred from the Short-Term Bond
Sub-Account to the Money Market Sub-Account.
The following significant accounting policies, which are in conformity
with generally accepted accounting principles, have been consistently
used in preparation of the Account's financial statements. 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.
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 Trust on December
31, 1998. 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 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.
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 are not declared by the Annuity Account, since the increase
in the value of the underlying investment in a Portfolio is reflected
daily in the accumulation unit value used to calculate the equity value
within the Annuity Account B. Consequently, a dividend distribution by
an underlying Portfolio does not change either the accumulation unit
value or equity values with the Annuity Account B.
10 Janus Retirement Advantage / December 31, 1998
<PAGE>
Notes to Financial Statements (continued)
4. SECURITIES TRANSACTIONS:
Securities transactions are summarized as follows:
For the period ended December 31, 1998 (in thousands)
PURCHASES PROCEEDS FROM SALES
SUB-ACCOUNT OF SECURITIES OF SECURITIES
-----------------------------------------------------------------------
Growth $12,655 $ 7,123
Aggressive Growth 12,224 14,176
Capital Appreciation 10,821 2,956
International Growth 14,037 17,107
Worldwide Growth 53,709 50,711
Balanced 6,550 3,345
Equity Income 6,116 2,535
Growth and Income(1) 4,712 1,044
Flexible Income 6,651 3,529
High-Yield 4,557 4,905
Money Market 87,424 76,787
-----------------------------------------------------------------------
(1) Period May 1, 1998, (inception) to December 31, 1998.
5. OTHER MATTERS
At December 31, 1998, net unrealized appreciation/depreciation on investments
are as follows (in thousands):
SUB-ACCOUNT
-----------------------------------------------------------------------
Growth $ 10,876
Aggressive Growth 5,702
Capital Appreciation 3,049
International Growth 802
Worldwide Growth 6,246
Balanced 4,068
-----------------------------------------------------------------------
SUB-ACCOUNT
-----------------------------------------------------------------------
Equity Income $ 1,996
Growth and Income 616
Flexible Income (45)
High-Yield (265)
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 statements of assets and liabilities
and the related statements of operations and of changes in net assets
and the financial highlights 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, 1998, the results of each
of their operations, the changes in each of their net assets and the
financial highlights for each of the periods indicated, in conformity
with generally accepted accounting principles. These financial
statements and financial highlights (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 statement 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 reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
/s/ PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
January 29, 1999
Janus Retirement Advantage / December 31, 1998 11
