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Previous: MARTIN MARIETTA MATERIALS INC, DEFS14A, 1996-08-27 |
Next: PROTECTION ONE INC, 8-K/A, 1996-08-27 |
NORTHSTAR/NWNL
VARIABLE ACCOUNT
SEMI-ANNUAL REPORT
FOR THE PERIOD ENDED
JUNE 30, 1996
(UNAUDITED)
[LOGO]
This report has been prepared to provide information to owners of Northstar/NWNL
Variable Account Contracts. If it is used for any other purpose, it must be
accompanied or preceded by a current Northstar/NWNL Variable Account Prospectus
which discloses any charges and other important information about the Account,
together with the current Prospectuses for the underlying Funds.
<PAGE>
NORTHSTAR/NWNL VARIABLE ACCOUNT
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
(In Thousands, Except Share and Unit Data)
(UNAUDITED)
<TABLE>
<CAPTION>
NORTHSTAR'S NORTHSTAR'S NORTHSTAR'S
ASSETS: INCOME AND NORTHSTAR'S MULTI-SECTOR HIGH YIELD
- ------- GROWTH FUND GROWTH FUND BOND FUND BOND FUND
Investments in mutual funds at market value: ------------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
NORTHSTAR'S:
Income and Growth Fund
437,313 shares (cost $4,780) $5,090
Growth Fund
103,940 shares (cost $1,370) $1,459
Multi-Sector Bond Fund
100,609 shares (cost $507) $522
High Yield Bond Fund
315,428 shares (cost $1,590) $1,646
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
82,042 shares (cost $82)
Overseas Portfolio
996 shares (cost $17)
Asset Manager Portfolio
539 shares (cost $8)
Index 500 Portfolio
248 shares (cost $19)
---------- ---------- ---------- ----------
Total Assets $5,090 $1,459 $522 $1,646
=========== ========== ========== ===========
LIABILITIES AND CONTRACT
OWNER'S EQUITY:
- ---------------
Due to Northwestern National Life
Insurance Company for contract charges: $ 5 $ 2 $ 1 ($1)
Contract Owners' Equity: 5,085 1,457 521 1,647
---------- ---------- ---------- ----------
Total Liabilities and Contract Owners' Equity $5,090 $1,459 $522 $1,646
=========== ========== ========== ===========
Units Outstanding: 408,217.430 95,219.304 43,529.733 131,937.133
Net Asset Value per Unit:
Northstar/NWNL Variable Annuity
Tax Qualified $12.456460 $15.297667 $11.980610 $12.482248
Non-Tax Qualified $12.456460 $15.297667 $11.980610 $12.482248
</TABLE>
The accompanying notes are an integral part of the financial statements.
i
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES, CONTINUED
(UNAUDITED)
<TABLE>
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF FIDELITY'S VIPF II FIDELITY'S VIPF II
ASSETS: MONEY MARKET OVERSEAS ASSET MANAGER INDEX 500
- ------- PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO TOTAL
Investments in mutual funds at market value: -------------- --------------- ---------------- ---------------- -------
<S> <C> <C> <C> <C> <C>
NORTHSTAR'S:
Income and Growth Fund
437,313 shares (cost $4,780) $5,090
Growth Fund
103,940 shares (cost $1,370) 1,459
Multi-Sector Bond Fund
100,609 shares (cost $507) 522
High Yield Bond Fund
315,428 shares (cost $1,590) 1,646
FIDELITY'S VIPF AND VIPF II:
Money Market Portfolio
82,042 shares (cost $82) $82 82
Overseas Portfolio
996 shares (cost $17) $18 18
Asset Manager Portfolio
539 shares (cost $8) $8 8
Index 500 Portfolio
248 shares (cost $19) $20 20
---------- ---------- ---------- ---------- ----------
Total Assets $82 $18 $8 $20 $8,845
========= ========= ======= ========= ===========
LIABILITIES AND CONTRACT
OWNER'S EQUITY:
- ---------------
Due to Northwestern National Life
Insurance Company for contract charges: $- $- $- $- $7
Contract Owners' Equity: 82 18 8 20 8,838
---------- ---------- ---------- ---------- ----------
Total Liabilities and Contract Owners' Equity $82 $18 $8 $20 $8,845
========= ========= ======= ========= ===========
Units Outstanding: 7,812.840 1,565.118 719.104 1,501.093 690,501.755
Net Asset Value per Unit:
Northstar/NWNL Variable Annuity
Tax Qualified $10.487634 $11.366009 $11.708642 $13.177932
Non-Tax Qualified $10.487634 $11.366009 $11.708642 $13.177932
</TABLE>
The accompanying notes are an integral part of the financial statements.
ii
<PAGE>
NORTHSTAR/NWNL VARIABLE ACCOUNT
STATEMENT OF OPERATIONS AND
CHANGES IN CONTRACT OWNERS' EQUITY
(In Thousands)
(UNAUDITED)
<TABLE>
<CAPTION>
Six months Year ended Period from
ended December 31, May 6, 1994 to
June 30, 1996 1995 Dec. 31, 1994
--------------- --------------- ---------------
<S> <C> <C> <C>
Net investment income:
Reinvested dividend income............................... $179 $ 226 $ 16
Reinvested capital gains................................. - 102 9
Administrative expenses.................................. (58) (60) (3)
--------- --------- ---------
Net investment income
and capital gains ........................... 121 268 22
--------- --------- ---------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares ........................ 54 44 (1)
Increase (decrease) in unrealized
appreciation of investments ....................... 211 286 (25)
------- --------- ---------
Net realized and unrealized gains (losses) ........ 265 330 (26)
--------- --------- ---------
Net additions (reductions) from operations... 386 598 (4)
--------- --------- ---------
Contract Owners' transactions:
Net purchase payments ................................... 2,566 4,461 1,381
Surrenders .............................................. (260) (268) (22)
Transfers between Sub-Accounts
and Fixed Account ................................. - - -
Annuity payments......................................... - - -
Transfers to (from) required reserves.................... - - -
--------- --------- ---------
Net additions for Contract
Owners' transactions ........................ 2,306 4,193 1,359
--------- --------- ---------
Net additions for the period .......... 2,692 4,791 1,355
Contract Owners' Equity, beginning of the year ............... 6,146 1,355 -
--------- --------- ---------
Contract Owners' Equity, end of the period ................... $8,838 $6,146 $1,355
========= ========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
iii
<PAGE>
NORTHSTAR/NWNL VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ORGANIZATION AND CONTRACTS:
Northstar/NWNL Variable Account (the Account) is a separate account of
Northwestern National Life Insurance Company (NWNL or Northwestern), a
wholly-owned subsidiary of ReliaStar Financial Corp. (formerly The NWNL
Companies, Inc.). The Account commenced operations on May 6, 1994 and is
registered as a unit investment trust under the Investment Company Act of
1940.
Purchase payments received under the contracts are allocated to Sub-Accounts
of the Account, each of which is invested in one of the Funds listed below
during the period.
NORTHSTAR FUNDS: FIDELITY'S VIPF AND VIPF II:
---------------- ----------------------------
Income and Growth Fund Money Market Portfolio
Growth Fund Overseas Portfolio
Multi-Sector Bond Fund Asset Manager Portfolio
High Yield Bond Fund Index 500 Portfolio
Northstar Investment Management Corporation, an affiliate of NWNL, is the
investment adviser for the four Funds of the Northstar/NWNL Trust and is paid
fees for its services by the Northstar Funds. Fidelity Management & Research
Company is the investment adviser for Fidelity's Variable Insurance Products
Fund (VIPF) and Variable Insurance Products Fund II (VIPF II) and is paid for
its services by the VIPF and VIPF II Portfolios. On April 30, 1995,
Sub-Accounts investing in VIPF and VIPF II Portfolios were made available
under the contracts.
SECURITIES VALUATION TRANSACTIONS AND RELATED INVESTMENT INCOME:
The market value of investments in the Sub-Accounts is based on the closing
net asset values of the Fund shares held at the end of the period. Investment
transactions are accounted for on the trade date (date the order to purchase
or redeem is executed) and dividend income and capital gain distributions are
recorded on the ex-dividend date. Net realized gains and losses on
redemptions of shares of the Funds are determined on the basis of specific
identification of Fund share costs.
VARIABLE ANNUITY RESERVES:
The amount of the reserves for contracts in the distribution period is
determined by actuarial assumptions which meet statutory requirements. Gains
or losses resulting from actual mortality experience, the full responsibility
for which is assumed by NWNL, are offset by transfers to (or from) NWNL.
2. FEDERAL INCOME TAXES:
Under current tax law, the income, gains and losses from the separate account
investments are not taxable to either the Account or NWNL.
3. CONTRACT CHARGES:
No deduction is made for a sales charge from the purchase payments made for
the contracts. However, on certain surrenders, NWNL will deduct from the
contract value a surrender charge as set forth in the contract.
Certain charges are made by NWNL to Contract Owners' Variable Accumulation
Values in the Account in accordance with the terms of the Contracts. These
charges may include: an annual administrative/contract charge of $35 from
each contract on the anniversary date or at the time of surrender, if
surrender is at a time other than the anniversary date; a daily
administrative charge; and a daily charge for mortality and expense risk
assumed by NWNL. NWNL bears the risk of adverse mortality experience and any
costs for sales and administrative services and expenses which exceed these
periodic charges.
Various states and other governmental units levy a premium tax on annuity
contracts issued by insurance companies. If the owner of a contract lives in
a state which levies such a tax, NWNL may deduct the amount of the tax from
the purchase payments received or the value of the contract at annuitization.
iv
<PAGE>
NORTHSTAR/NWNL VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
4. INVESTMENTS:
The net realized gains (losses) on redemptions of fund shares for the six
months ended June 30, 1996, year ended December 31, 1995 and the period
from May 6, 1994 (date operations commenced) to December 31, 1994, were as
follows, (in thousands):
<TABLE>
<CAPTION>
NORTHSTAR'S
INCOME AND
TOTAL GROWTH FUND
----------------------------------------------------------------------------------------------
Six months Year ended Period from Six months Year ended Period from
ended Dec. 31, May 6, 1994 ended Dec. 31, May 6, 1994
June 30, 1996 1995 to Dec. 31, 1994 June 30, 1996 1995 to Dec. 31, 1994
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions........ $865 $1,461 $65 $130 $986 $24
Cost............................. 811 1,417 66 115 954 25
--------- --------- --------- --------- --------- ---------
Net realized gains (losses) on
redemptions of fund shares $54 $ 44 ($1) $15 $32 ($1)
======== ======== ======== ======== ========= =========
<CAPTION>
NORTHSTAR FIDELTIY'S VIPF
HIGH YIELD MONEY MARKET
BOND FUND MARKET PORTFOLIO
------------------------------------------------------------------------------------------------
Six months Year ended Period from Six months Year ended Period from
ended Dec. 31, May 6, 1994 ended Dec. 31, May 6, 1994
June 30, 1996 1995 to Dec. 31, 1994 June 30, 1996 1995 to Dec. 31, 1994
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions ....... $642 $181 $23 $61 $- $-
Cost............................. 607 176 23 61 - -
--------- --------- --------- --------- --------- ---------
Net realized gains (losses) on
redemptions of fund shares $35 $5 $- $- $- $-
======== ======== ======== ======== ========= =========
<CAPTION>
FIDELITY'S VIPF II
INDEX 500
PORTOFLIO
-------------------------------------------------
Six months Year ended Period from
ended Dec. 31, May 6, 1994
June 30, 1996 1995 to Dec. 31, 1994
------------- ------------ -------------
<S> <C> <C> <C>
Proceeds from redemptions ....... $- $- $-
Cost............................. - - -
--------- --------- --------
Net realized gains (losses) on
redemptions of fund shares $- $- $-
========= ======== ========
</TABLE>
v
<PAGE>
NORTHSTAR/NWNL VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
<TABLE>
<CAPTION>
NORTHSTAR'S
NORTHSTAR'S MULTI-SECTOR
GROWTH FUND BOND FUND
-----------------------------------------------------------------------------------------------
Six months Year ended Period from Six months Year ended Period from
ended Dec. 31, May 6, 1994 ended Dec. 31, May 6, 1994
June 30, 1996 1995 to Dec. 31, 1994 June 30, 1996 1995 to Dec. 31, 1994
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions........ $20 $23 $14 $7 $271 $4
Cost............................. 16 20 14 7 267 4
--------- -------- --------- -------- -------- ---------
Net realized gains (losses) on
redemptions of fund shares $4 $ 3 $ - $- $ 4 $-
======== ======== ======== ======== ======== =========
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF II
OVERSEAS ASSET MANAGER
PORTFOLIO PORTFOLIO
--------------------------------------------------------------------------------------------------
Six months Year ended Period from Six months Year ended Period from
ended Dec. 31, May 6, 1994 ended Dec. 31, May 6, 1994
June 30, 1996 1995 to Dec. 31, 1994 June 30, 1996 1995 to Dec. 31, 1994
------------ ------------ ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
Proceeds from redemptions ....... $5 $- $- $- $- $-
Cost............................. 5 - - - - -
--------- --------- --------- --------- --------- ---------
Net realized gains (losses) on
redemptions of fund shares $- $- $- $- $- $-
========= ======== ========= ======== ========= =========
</TABLE>
vi
<PAGE>
NORTHSTAR/NWNL VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
5. CONTRACT OWNERS' TRANSACTIONS:
Unit transactions in each Sub-Account during the six months ended June 30,
1996, the year ended December 31, 1995 and the period from May 6, 1994
(date operations commenced) to December 31, 1994, were as follows:
<TABLE>
<CAPTION>
NORTHSTAR'S
INCOME AND NORTHSTAR'S
GROWTH FUND GROWTH FUND
---------------------------------------------------------------------------------------------
Six months Year ended Period from Six months Year ended Period from
ended Dec. 31, May 6, 1994 ended Dec. 31, May 6, 1994
June 30, 1996 1995 to Dec. 31, 1994 June 30, 1996 1995 to Dec. 31, 1994
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of the year............ 301,285.181 100,955.441 - 27,043.488 8,738.734 -
Units purchased..................... 93,809.178 272,482.821 102,017.017 49,533.752 16,561.980 8,900.561
Units redeemed...................... (5,088.727) (12,532.790) (1,061.576) (914.083) (1,662.223) (626.685)
Units transferred between
Sub-Accounts and/or
Fixed Account ................... 18,211.798 (59,620.291) - 20,556.147 3,404.997 464.858
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of the period................ 408,217.430 301,285.181 100,955.441 95,219.304 27,043.488 8,738.734
=========== =========== =========== =========== =========== ===========
<CAPTION>
FIDELITY'S VIPF FIDELITY'S VIPF
MONEY MARKET OVERSEAS
PORTFOLIO PORTFOLIO
----------------------------------------------------------------------------------------------
Six months Year ended Period from Six months Year ended Period from
ended Dec. 31, May 6, 1994 ended Dec. 31, May 6, 1994
June 30, 1996 1995 to Dec. 31, 1994 June 30, 1996 1995 to Dec. 31, 1994
------------- ------------ ------------- ------------ ------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of the year............ - - - - - -
Units purchased .................... 13,633.725 - - 2,009.509 - -
Units redeemed ..................... - - - - - -
Units transferred between
Sub-Accounts and/or
Fixed Account ................... (5,820.885) - - (444.391) - -
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of the period ............... 7,812.840 - - 1,565.118 - -
=========== =========== =========== =========== =========== ===========
</TABLE>
vii
<PAGE>
NORTHSTAR/NWNL VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
<TABLE>
<CAPTION>
NORTHSTAR'S NORTHSTAR'S
MULTI-SECTOR HIGH YIELD
BOND FUND BOND FUND
-----------------------------------------------------------------------------------------------
Six months Year ended Period from Six months Year ended Period from
ended Dec. 31, May 6, 1994 ended Dec. 31, May 6, 1994
June 30, 1996 1995 to Dec. 31, 1994 June 30, 1996 1995 to Dec. 31, 1994
------------- ------------ ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of the year............ 37,703.818 15,492.534 - 149,292.389 8,985.149 -
Units purchased..................... 6,145.162 34,047.693 15,492.534 35,768.039 83,081.624 10,139.023
Units redeemed...................... - (10.440) - (10,467.222) (10,401.395) (658.699)
Units transferred between
Sub-Accounts and/or
Fixed Account ................... (319.247) (11,825.969) - (42,656.073) 67,627.011 (495.175)
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of the period................ 43,529.733 37,703.818 15,492.534 131,937.133 149,292.389 8,985.149
=========== =========== =========== =========== =========== ===========
<CAPTION>
FIDELITY'S VIPF II FIDELITY'S VIPF II
ASSET MANAGER INDEX 500
PORTFOLIO PORTFOLIO
-----------------------------------------------------------------------------------------------
Six months Year ended Period from Six months Year ended Period from
ended Dec. 31, May 6, 1994 ended Dec. 31, May 6, 1994
June 30, 1996 1995 to Dec. 31, 1994 June 30, 1996 1995 to Dec. 31, 1994
------------- ------------ ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding,
beginning of the year............ - - - 335.333 - -
Units purchased .................... 719.104 - - - - -
Units redeemed ..................... - - - (2.627) - -
Units transferred between
Sub-Accounts and/or
Fixed Account ................... - - - 1,168.387 335.333 -
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding,
end of the period ............... 719.104 - - 1,501.093 335.333 -
=========== =========== =========== =========== =========== ===========
</TABLE>
viii
<PAGE>
NORTHSTAR/NWNL VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
6. COMBINING STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY.
Operations and changes in Contract Owners' equity for the six months
ended June 30, 1996 were as follows (in thousands):
<TABLE>
<CAPTION>
NORTHSTAR'S NORTHSTAR'S NORTHSTAR'S
INCOME AND NORTHSTAR'S MULTI-SECTOR HIGH YIELD
TOTAL GROWTH FUND GROWTH FUND BOND FUND BOND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Net investment income:
Reinvested dividend income $179 $72 $5 $21 $80
Reinvested capital gains ... - - - - -
Administrative expenses .... (58) (34) (5) (3) (12)
--------- --------- --------- --------- ---------
Net investment income
and capital gains .... 121 38 - 18 68
--------- --------- --------- --------- ---------
Realized and unrealized gains:
Net realized gains on
redemptions of fund shares 54 15 4 - 35
Increase in unrealized
appreciation of investments 211 94 91 4 20
--------- --------- --------- --------- ---------
Net realized and unrealized
gains ................ 265 109 95 4 55
--------- --------- --------- --------- ---------
Net additions (reductions)
from operations 386 147 95 22 123
--------- --------- --------- --------- ---------
Contract Owners' transactions:
Net purchase payments ...... 2,566 1,132 753 72 437
Surrenders ................. (260) (59) (13) (4) (127)
Transfers between Sub-Accounts
and/or Fixed Account .... - 222 281 - (513)
Annuity payments............ - - - - -
Transfers to (from)
required reserves......... - - - - -
--------- --------- --------- --------- ---------
Net additions (reductions) for
Contract Owners' transactions 2,306 1,295 1,021 68 (203)
--------- --------- --------- --------- ---------
Net additions (reductions)
for the period . 2,692 1,442 1,116 90 (80)
Contract Owners' Equity,
beginning of the year ...... 6,146 3,643 341 431 1,727
--------- --------- --------- --------- ---------
Contract Owners' Equity,
end of the period .......... $8,838 $5,085 $1,457 $521 $1,647
========= ========= ========= ========= =========
</TABLE>
ix
<PAGE>
NORTHSTAR/NWNL VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
<TABLE>
<CAPTION>
DELITY'S VIPF FIDELITY'S VIPF FIDELITY'S VIPF II FIDELITY'S VIPF II
ONEY MARKET OVERSEAS ASSET MANAGER INDEX 500
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- -------------- ----------------
<S> <C> <C> <C> <C>
Net investment income:
Reinvested dividend income $1 $- $- $-
Reinvested capital gains ... - - - -
Administrative expenses .... (4) - - -
--------- --------- --------- ---------
Net investment income
and capital gains .... (3) - - -
--------- --------- --------- ---------
Realized and unrealized gains:
Net realized gains on
redemptions of fund shares - - - -
Increase in unrealized
appreciation of investments - 1 - 1
--------- --------- --------- ---------
Net realized and unrealized
gains ................ - 1 - 1
--------- --------- --------- ---------
Net additions (reductions)
from operations (3) 1 - 1
--------- --------- --------- ---------
Contract Owners' transactions:
Net purchase payments ...... 142 22 8 -
Surrenders ................. (57) - - -
Transfers between Sub-Accounts
and/or Fixed Account .... - (5) - 15
Annuity payments............ - - - -
Transfers to (from)
required reserves......... - - - -
--------- --------- --------- ---------
Net additions (reductions) for
Contract Owners' transactions 85 17 8 15
--------- --------- --------- ---------
Net additions (reductions)
for the period . 82 18 8 16
Contract Owners' Equity,
beginning of the year ...... - - - 4
--------- --------- --------- ---------
Contract Owners' Equity,
end of the period .......... $82 $18 $8 $20
========== ========= ========= =========
</TABLE>
x
<PAGE>
NORTHSTAR/NWNL VARIABLE ACCOUNT
[LOGO] 20 Washington Avenue South
Minneapolis, Minnesota 55401
(612) 372-5507
45081a
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