<PAGE>
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1
<PAGE>
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Dear Valued Policyholder:
We are pleased to present the Semi-Annual Report of the AUSA Life Endeavor
Variable Annuity Account for the period ending June 30, 1995. This report
contains information on the following subaccounts:
Money Market
Managed Asset Allocation
T. Rowe Price International Stock
Quest For Value Equity
Quest For Value Small Cap
U.S. Government Securities
T. Rowe Price Equity Income
T. Rowe Price Growth Stock
Growth
In addition to the variable annuity report, reports of the underlying mutual
fund portfolios are enclosed. These reports give you insight regarding the
underlying investments in your variable annuity policy.
We are pleased that you have chosen the Endeavor Variable Annuity to be part of
your financial future. We look forward to serving you in the future.
Sincerely,
/s/ William L. Busler
William L. Busler
Vice President
AUSA Life Insurance Company, Inc.
2
<PAGE>
================================================================================
THE AUSA LIFE ENDEAVOR VARIABLE ANNUITY ACCOUNT
BALANCE SHEET
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
MANAGED
MONEY ASSET
MARKET ALLOCATION
TOTAL SUBACCOUNT SUBACCOUNT
---------- ---------- ----------
<S> <C> <C> <C>
ASSETS
Cash:.................................................................... $ 4 -- --
Investments in mutual funds, at current market value:
Endeavor Series Trust - Money Market Portfolio
79,787.090 shares (cost $79,788)................................... 79,788 79,788 --
Endeavor Series Trust - Managed Asset Allocation Portfolio
46,434.597 shares (cost $644,078).................................. 707,663 -- 707,663
Endeavor Series Trust - T. Rowe Price International Stock Portfolio
35,992.738 shares (cost $428,158).................................. 408,157 -- --
Endeavor Series Trust - Quest for Value Equity Portfolio
16,819.485 shares (cost $188,425)..................................... 215,962 -- --
Endeavor Series Trust - Quest for Value Small Cap Portfolio
34,120.862 shares (cost $374,190)..................................... 387,954 -- --
Endeavor Series Trust - U.S. Government Securities Portfolio
4,169.615 shares (cost $45,087).................................... 44,990 -- --
Endeavor Series Trust - T. Rowe Price Equity Income Portfolio
1,184.319 shares (cost $13,312).................................... 13,300 -- --
Endeavor Series Trust - T. Rowe Price Growth Stock Portfolio
1,450.477 shares (cost $16,976).................................... 17,710 -- --
WRL Series Fund, Inc. - Growth Portfolio
21,383.799 shares (cost $553,968).................................. 627,613 -- --
---------- ---------- ----------
Total investments in mutual funds..................................... 2,503,137 79,788 707,663
Total Assets.......................................................... $2,503,141 79,788 707,663
========== ========== ==========
LIABILITIES AND CONTRACT OWNERS' EQUITY
Liabilities:
Contract terminations payable......................................... $ 7 -- 4
---------- ---------- ----------
Total Liabilities..................................................... 7 -- 4
Contract Owners' Equity:
Deferred annuity contracts terminable by owners (Notes 2 and 5)....... 2,503,134 79,788 707,659
---------- ---------- ----------
$2,503,141 79,788 707,663
========== ========== ==========
</TABLE>
See accompanying Notes to Financial Statements.
3
<PAGE>
================================================================================
<TABLE>
<CAPTION>
T. ROWE PRICE QUEST QUEST U.S.
INTERNATIONAL FOR VALUE FOR VALUE GOVERNMENT
STOCK EQUITY SMALL CAP SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- --------- ---------- ----------
<S> <C> <C> <C> <C>
ASSETS
Cash:.................................................................... 3 -- -- --
Investments in mutual funds, at current market value:
Endeavor Series Trust - Money Market Portfolio
79,787.090 shares (cost $79,788)................................... -- -- -- --
Endeavor Series Trust - Managed Asset Allocation Portfolio
46,434.597 shares (cost $644,078).................................. -- -- -- --
Endeavor Series Trust - T. Rowe Price International Stock Portfolio
35,992.738 shares (cost $428,158).................................. 408,157 -- -- --
Endeavor Series Trust - Quest for Value Equity Portfolio
16,819.485 shares (cost $188,425)..................................... -- 215,962 -- --
Endeavor Series Trust - Quest for Value Small Cap Portfolio
34,120.862 shares (cost $374,190)..................................... -- -- 387,954 --
Endeavor Series Trust - U.S. Government Securities Portfolio
4,169.615 shares (cost $45,087).................................... -- -- -- 44,990
Endeavor Series Trust - T. Rowe Price Equity Income Portfolio
1,184.319 shares (cost $13,312).................................... -- -- -- --
Endeavor Series Trust - T. Rowe Price Growth Stock Portfolio
1,450.477 shares (cost $16,976).................................... -- -- -- --
WRL Series Fund, Inc. - Growth Portfolio
21,383.799 shares (cost $553,968).................................. -- -- -- --
--------- --------- --------- --------
Total investments in mutual funds..................................... 408,157 215,962 387,954 44,990
Total Assets.......................................................... 408,160 215,962 387,954 44,990
========= ========= ========= ========
LIABILITIES AND CONTRACT OWNERS' EQUITY
Liabilities:
Contract terminations payable......................................... -- 1 2 --
--------- --------- --------- --------
Total Liabilities..................................................... -- 1 2 --
Contract Owners' Equity:
Deferred annuity contracts terminable by owners (Notes 2 and 5)....... 408,160 215,961 387,952 44,990
--------- --------- --------- --------
408,160 215,962 387,954 44,990
========= ========= ========= ========
</TABLE>
<TABLE>
<CAPTION>
T. ROWE PRICE T. ROWE PRICE
EQUITY GROWTH
INCOME STOCK GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------- ----------
<S> <C> <C> <C>
ASSETS
Cash:.................................................................... -- -- 1
Investments in mutual funds, at current market value:
Endeavor Series Trust - Money Market Portfolio
79,787.090 shares (cost $79,788)................................... -- -- --
Endeavor Series Trust - Managed Asset Allocation Portfolio
46,434.597 shares (cost $644,078).................................. -- -- --
Endeavor Series Trust - T. Rowe Price International Stock Portfolio
35,992.738 shares (cost $428,158).................................. -- -- --
Endeavor Series Trust - Quest for Value Equity Portfolio
16,819.485 shares (cost $188,425)..................................... -- -- --
Endeavor Series Trust - Quest for Value Small Cap Portfolio
34,120.862 shares (cost $374,190)..................................... -- -- --
Endeavor Series Trust - U.S. Government Securities Portfolio
4,169.615 shares (cost $45,087).................................... -- -- --
Endeavor Series Trust - T. Rowe Price Equity Income Portfolio
1,184.319 shares (cost $13,312).................................... 13,300 -- --
Endeavor Series Trust - T. Rowe Price Growth Stock Portfolio
1,450.477 shares (cost $16,976).................................... -- 17,710 --
WRL Series Fund, Inc. - Growth Portfolio
21,383.799 shares (cost $553,968).................................. -- -- 627,613
--------- --------- ---------
Total investments in mutual funds..................................... 13,300 17,710 627,613
Total Assets.......................................................... 13,300 17,710 627,614
========= ========= =========
LIABILITIES AND CONTRACT OWNERS' EQUITY
Liabilities:
Contract terminations payable......................................... -- -- --
--------- --------- ---------
Total Liabilities..................................................... -- -- --
Contract Owners' Equity:
Deferred annuity contracts terminable by owners (Notes 2 and 5)....... 13,300 17,710 627,614
--------- --------- ---------
13,300 17,710 627,614
========= ========= =========
</TABLE>
4
<PAGE>
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THE AUSA LIFE ENDEAVOR VARIABLE ANNUITY ACCOUNT
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1995 or Commencement
of Operations to June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Managed
Money Asset
Market Allocation
Total Subaccount Subaccount
--------- ----------- ----------
<S> <C> <C> <C>
Net Investment Income (Loss)
Income:
Dividends.............................................................. $ 18,261 1,259 11,240
Expenses:
Administration Fee (Note 4)............................................ 911 -- 262
Mortality and expense risk charge (Note 4)............................. 13,954 342 4,348
--------- ------- -------
Net investment income (loss)........................................ 3,396 917 6,630
--------- ------- -------
Net Realized and Unrealized Capital Gain (Loss) From Investments
Net realized capital gain (loss) from sales of investments:
Proceeds from sales.................................................... 209,287 86,903 53,909
Cost of investments sold............................................... 213,547 86,903 55,975
--------- ------- -------
(4,260) -- (2,066)
Capital gain dividends................................................. 14,554 -- --
--------- ------- -------
Net realized capital gain (loss).......................................... 10,294 -- (2,066)
--------- ------- -------
Net change in unrealized appreciation (depreciation) of investments:
Beginning of the period................................................ (72,254) -- (17,019)
End of the period...................................................... 159,155 -- 63,585
--------- ------- -------
Net change in unrealized appreciation (depreciation) of investments.... 231,409 -- 80,604
--------- ------- -------
Net realized and unrealized capital gain (loss) from investments....... 241,703 -- 78,538
--------- ------- -------
Increase (Decrease) From Operations....................................... $ 245,099 917 85,168
========= ======= =======
</TABLE>
/1/ Period from June 16, 1995 (commencement of operations) to June 30, 1995
/2/ Period from June 28, 1995 (commencement of operations) to June 30, 1995
/3/ Period from April 28, 1995 (commencement of operations) to June 30, 1995
See accompanying Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
T. Rowe Price Quest Quest U.S.
International for Value for Value Government
Stock Equity Small Cap Securities
Subaccount Subaccount Subaccount Subaccount/1/
------------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
Net Investment Income (Loss)
Income:
Dividends.............................................................. -- 1,038 2,927 --
Expenses:
Administration Fee (Note 4)............................................ 205 44 130 --
Mortality and expense risk charge (Note 4)............................. 2,739 961 2,119 13
------- ------ ------ ------
Net investment income (loss)........................................ (2,944) 33 678 (13)
------- ------ ------ ------
Net Realized and Unrealized Capital Gain (Loss) From Investments
Net realized capital gain (loss) from sales of investments:
Proceeds from sales.................................................... 15,250 1,288 26,682 13
Cost of investments sold............................................... 16,616 1,110 27,634 13
------- ------ ------ ------
(1,366) 178 (952) --
Capital gain dividends................................................. 9,297 473 4,784 --
------- ------ ------ ------
Net realized capital gain (loss).......................................... 7,931 651 3,832 --
------- ------ ------ ------
Net change in unrealized appreciation (depreciation) of investments:
Beginning of the period................................................ (23,084) 1,856 (137) --
End of the period...................................................... (20,001) 27,537 13,764 (97)
------- ------ ------ ------
Net change in unrealized appreciation (depreciation) of investments.... 3,083 25,681 13,901 (97)
------- ------ ------ ------
Net realized and unrealized capital gain (loss) from investments....... 11,014 26,332 17,733 (97)
------- ------ ------ ------
Increase (Decrease) From Operations....................................... 8,070 26,365 18,411 (110)
======= ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
T. Rowe Price T. Rowe Price
Equity Growth
Income Stock Growth
Subaccount/2/ Subaccount/3/ Subaccount
------------- ------------- ----------
<S> <C> <C> <C>
Net Investment Income (Loss)
Income:
Dividends.............................................................. -- -- 1,797
Expenses:
Administration Fee (Note 4)............................................ -- -- 270
Mortality and expense risk charge (Note 4)............................. 1 25 3,406
------ ------ --------
Net investment income (loss)........................................ (1) (25) (1,879)
------ ------ --------
Net Realized and Unrealized Capital Gain (Loss) From Investments
Net realized capital gain (loss) from sales of investments:
Proceeds from sales.................................................... 1 25 25,216
Cost of investments sold............................................... 1 24 25,271
------ ------ --------
-- 1 (55)
Capital gain dividends................................................. -- -- --
------ ------ --------
Net realized capital gain (loss).......................................... -- 1 (55)
------ ------ --------
Net change in unrealized appreciation (depreciation) of investments:
Beginning of the period................................................ -- -- (33,870)
End of the period...................................................... (12) 734 73,645
------ ------ --------
Net change in unrealized appreciation (depreciation) of investments.... (12) 734 107,515
------ ------ --------
Net realized and unrealized capital gain (loss) from investments....... (12) 735 107,460
------ ------ --------
Increase (Decrease) From Operations....................................... (13) 710 105,581
====== ====== ========
</TABLE>
6
<PAGE>
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THE AUSA LIFE ENDEAVOR VARIABLE ANNUITY ACCOUNT
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
Six Months Ended June 30, 1995 or Commencement of Operations to June 30, 1995
and Twelve Months Ended December 31, 1994 or Commencement of Operations to
December 31, 1994 (Unaudited)
<TABLE>
<CAPTION>
MANAGED T. ROWE PRICE
MONEY ASSET INTERNATIONAL
MARKET ALLOCATION STOCK
TOTAL SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------- ----------------------- ----------------------- -------------------
1995 1994 1995 1994/1/ 1995 1994 1995 1994
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income (loss)..... $ 3,396 (11,336) 917 424 6,630 (3,641) (2,944) (4,028)
Net realized capital gain (loss). 10,294 (2,536) -- -- (2,066) (1,317) 7,931 78
Net change in unrealized
appreciation (depreciation) of
investments..................... 231,409 (72,009) -- -- 80,604 (17,283) 3,083 (23,321)
----------- --------- ------- -------- -------- -------- -------- --------
Increase (decrease) from
operations...................... 245,099 (85,881) 917 424 85,168 (22,241) 8,070 (27,271)
----------- --------- ------- -------- -------- -------- -------- --------
CONTRACT TRANSACTIONS
Net contract purchase payments.... 356,037 1,676,100 69,537 75,106 10,368 527,169 12,429 378,543
Transfers between funds........... -- -- -- (19,845) -- (5,271) -- 5,000
Transfers (to) from general
account........................ 133,406 45,761 (46,351) -- 61,896 17,286 15,589 7,264
Contract terminations,
withdrawals, and other
deductions..................... (51,395) (8,786) -- -- (20,640) (6,310) (7,003) (1,238)
----------- --------- ------- -------- -------- -------- -------- --------
Increase from contract
transactions................... 438,048 1,713,075 23,186 55,261 51,624 532,874 21,015 389,569
----------- --------- ------- -------- -------- -------- -------- --------
Net increase in contract
owners' equity................ 683,147 1,627,194 24,103 55,685 136,792 510,633 29,085 362,298
----------- --------- ------- -------- -------- -------- -------- --------
CONTRACT OWNERS' EQUITY
Beginning of period.............. 1 ,819,987 192,793 55,685 -- 570,867 60,234 379,075 16,777
----------- --------- ------- -------- -------- -------- -------- --------
End of period..................... $ 2,503,134 1,819,987 79,788 55,685 707,659 570,867 408,160 379,075
=========== ========= ======= ======== ======== ======== ======== ========
</TABLE>
/1/ Period from March 17, 1994 (commencement of operations) to December 31, 1994
/2/ Period from June 16, 1995 (commencement of operations) to June 30, 1995
/3/ Period from June 28, 1995 (commencement of operations) to June 30, 1995
/4/ Period from April 28, 1995 (commencement of operations) to June 30, 1995
See accompanying Notes to Financial Statements.
7
<PAGE>
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<TABLE>
<CAPTION>
QUEST QUEST U.S.
FOR VALUE FOR VALUE GOVERNMENT
EQUITY SMALL CAP SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------- ------------------------ -----------
1995 1994 1995 1994 1995/2/
-------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income (loss)..... 33 (628) 678 (2,828) (13)
Net realized capital gain (loss). 651 18 3,832 (519) --
Net change in unrealized
appreciation (depreciation) of
investments.................... 25,681 1,853 13,901 (166) (97)
--------- --------- --------- --------- --------
Increase (decrease) from
operations..................... 26,365 1,243 18,411 (3,513) (110)
--------- --------- --------- --------- --------
CONTRACT TRANSACTIONS
Net contract purchase payments.... 66,136 96,333 60,616 282,278 45,100
Transfers between funds........... -- -- -- -- --
Transfers (to) from general
account........................ 20,957 1,925 36,889 4,475 --
Contract terminations,
withdrawals, and other
deductions..................... -- -- (12,739) -- --
--------- --------- --------- --------- --------
Increase from contract
transactions................... 87,093 98,258 84,766 286,753 45,100
--------- --------- --------- --------- --------
Net increase in contract
owners' equity................. 113,458 99,501 103,177 283,240 44,990
--------- --------- --------- --------- --------
CONTRACT OWNERS' EQUITY
Beginning of period............ 102,503 3,002 284,775 1,535 --
--------- --------- --------- --------- --------
End of period..................... 215,961 102,503 387,952 284,775 44,990
========= ========= ========= ========= ========
</TABLE>
<TABLE>
<CAPTION>
T. ROWE PRICE T. ROWE PRICE
EQUITY GROWTH
INCOME STOCK GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------ --------------------
1995/3/ 1995/4/ 1995 1994
------- ------- ---- ----
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income (loss)..... (1) (25) (1,879) (635)
Net realized capital gain (loss). -- 1 (55) (796)
Net change in unrealized
appreciation (depreciation) of
investments.................... (12) 734 107,515 (33,092)
-------- -------- -------- --------
Increase (decrease) from
operations..................... (13) 710 105,581 (34,523)
-------- -------- -------- --------
CONTRACT TRANSACTIONS
Net contract purchase payments.... 13,313 17,000 61,538 316,671
Transfers between funds........... -- -- -- 20,116
Transfers (to) from general
account........................ -- -- 44,426 14,811
Contract terminations,
withdrawals, and other
deductions..................... -- -- (11,013) (1,238)
-------- -------- -------- --------
Increase from contract
transactions................... 13,313 17,000 94,951 350,360
-------- -------- -------- --------
Net increase in contract
owners' equity................. 13,300 17,710 200,532 315,837
-------- -------- -------- --------
CONTRACT OWNERS' EQUITY
Beginning of period.............. -- -- 427,082 111,245
-------- -------- -------- --------
End of period..................... 13,300 17,710 627,614 427,082
======== ======== ======== ========
</TABLE>
8
<PAGE>
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The AUSA Life Endeavor Variable Annuity Account
Notes to Financial Statements
June 30, 1995 (Unaudited)
1. Organization and Summary of Significant Accounting Policies
Organization -- The AUSA Life Endeavor Variable Annuity Account ("Mutual Fund
Account") is a segregated investment account of AUSA Life Insurance Company,
Inc. ("AUSA Life"), an indirect, wholly-owned subsidiary of AEGON USA, Inc.
("AUSA"), a holding company. AUSA is an indirect, wholly-owned subsidiary of
AEGON nv, a holding company organized under the laws of The Netherlands.
The U.S. Government Securities Subaccount, as a part of the Mutual Fund Account,
commenced operations on June 16, 1995. The T. Rowe Price Equity Income
Subaccount, as part of the Mutual Fund Account, commenced operations on June 28,
1995. The T. Rowe Price Growth Stock Subaccount, as a part of the Mutual Fund
Account, commenced operations on April 28, 1995. The Money Market Subaccount, as
a part of the Mutual Fund Account, commenced operations on March 17, 1994. All
other subaccounts of the Mutual Fund Account commenced operations on November 5,
1993. The investment advisor of the Endeavor Series Trust is Endeavor Investment
Advisors, a general partnership between Endeavor Management Co., and AUSA
Financial Markets, Inc., an affiliate of AUSA Life. The investment advisor for
the WRL Series Fund, Inc. is Western Reserve Life Assurance Co. of Ohio, an
affiliate of AUSA Life.
The Mutual Fund Account is registered with the Securities and Exchange
Commission as a Unit Investment Trust pursuant to provisions of the Investment
Company Act of 1940.
Investments -- Net purchase payments received by the Mutual Fund Account are
invested in the portfolios of the Endeavor Series Trust, and the Growth
Portfolio of the WRL Series Fund, Inc. (collectively the "Series Funds"), as
selected by the contract owner. Investments are stated at the closing net asset
values per share on June 30, 1995.
Realized capital gains and losses from sale of shares in the Series Funds are
determined on the first-in, first-out basis. Investment transactions are
accounted for on the trade date (date the order to buy or sell is executed) and
dividend income is recorded on the ex-dividend date. Unrealized gains or losses
from investments in the Series Funds are credited or charged to contract owners'
equity.
Dividend Income -- Dividends received from the Series Funds investments are
reinvested to purchase additional mutual fund shares.
9
<PAGE>
================================================================================
2. Contract Owners' Equity
A summary of deferred annuity contracts terminable by owners at June 30, 1995
follows:
<TABLE>
<CAPTION>
Accumulation
Accumulation Unit Total
Subaccount Units Owned Value Contract Value
---------- ------------ ------------- --------------
<S> <C> <C> <C>
Money Market............................................. 72,914.216 $ 1.094269 $ 79,788
Managed Asset Allocation................................. 475,784.755 1.487351 707,659
T. Rowe Price International Stock........................ 372,085.317 1.096954 408,160
Quest for Value Equity................................... 171,256.692 1.261038 215,961
Quest for Value Small Cap................................ 343,105.354 1.130708 387,952
U.S. Government Securities............................... 41,949.896 1.072474 44,990
T. Rowe Price Equity Income.............................. 11,923.695 1.115419 13,300
T. Rowe Price Growth Stock............................... 14,603.165 1.212767 17,710
Growth................................................... 50,873.580 12.336729 627,614
------------
$ 2,503,134
============
</TABLE>
A summary of changes in contract owners' account units follows:
<TABLE>
<CAPTION>
Managed T. Rowe Price Quest Quest U.S.
Money Asset International for Value for Value Government
Market Allocation Stock Equity Small Cap Securities
Subacct. Subacct. Subacct. Subacct. Subacct. Subacct.
---------- ---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding at
beginning of period.............. -- 43,225 14,507 2,948 1,386 --
Units purchased.................. 70,621 390,851 328,628 93,234 259,793 --
Units redeemed and transferred... (18,697) 4,490 9,835 1,850 4,237 --
---------- ---------- --------- --------- --------- ---------
Units outstanding at 12/31/94.... 51,924 438,566 352,970 98,032 265,416 --
Units purchased.................. 64,104 7,529 11,446 55,218 54,962 41,950
Units redeemed and transferred... (43,114) 29,690 7,669 18,007 22,727 --
---------- ---------- --------- --------- --------- ---------
Units outstanding 6/30/95........ 72,914 475,785 372,085 171,257 343,105 41,950
========== ========== ========= ========= ========= =========
<CAPTION>
T. Rowe Price T. Rowe Price
Equity Growth
Income Stock Growth
Subacct. Subacct. Subacct.
------------ ------------- -------------
<S> <C> <C> <C>
Units outstanding at
beginning of period.............. -- -- 10,009
Units purchased.................. -- -- 29,222
Units redeemed and transferred... -- -- 3,260
---------- ---------- ---------
Units outstanding at 12/31/94.... -- -- 42,491
Units purchased.................. 11,924 14,603 5,335
Units redeemed and transferred... -- -- 3,048
---------- ---------- ---------
Units outstanding 6/30/95........ 11,924 14,603 50,874
========== ========== =========
</TABLE>
3. Taxes
Operations of the Mutual Fund Account form a part of AUSA Life, which is taxed
as a life insurance company under Subchapter L of the Internal Revenue Code of
1986, as amended (the "Code"). The operations of the Mutual Fund Account are
accounted for separately from other operations of AUSA Life for purposes of
federal income taxation. The Mutual Fund Account is not separately taxable as a
regulated investment company under Subchapter M of the Code and is not otherwise
taxable as an entity separate from AUSA Life. Under existing federal income tax
laws, the income of the Mutual Fund Account, to the extent applied to increase
reserves under the variable annuity contracts, is not taxable to AUSA Life.
4. Administrative, Mortality and Expense Risk Charge
Administrative charges include an annual charge of $35 per contract which will
commence on the first policy anniversary of each contract owner's account.
Charges for administrative fees to the variable annuity contracts are an expense
of the Mutual Fund Account.
AUSA Life deducts a daily charge equal to an annual rate of 1.25% of the value
of the contract owners' individual account as a charge for assuming certain
mortality and expense risks. AUSA Life also deducts a daily charge equal to an
annual rate of .15% of the contract owners' individual account for
administrative expenses.
10
<PAGE>
================================================================================
5. Net Assets
At June 30, 1995 contract owners' equity was comprised of:
<TABLE>
<CAPTION>
T. Rowe Quest Quest
Managed Price for for U.S.
Money Asset Int'l Value Value Gov't
Market Allocation Stock Equity Small Cap Stock
Total Subacct. Subacct. Subacct. Subacct. Subacct. Subacct.
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Unit transactions, accumulated
net investment income and
realized capital gains............. $2,343,979 79,788 644,074 428,161 188,424 374,188 45,087
Adjustment for appreciation
(depreciation) to market value..... 159,155 -- 63,585 (20,001) 27,537 13,764 (97)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Contract Owners' Equity........ $2,503,134 79,788 707,659 408,160 215,961 387,952 44,990
========== ========== ========== ========== ========== ========== ==========
<CAPTION>
T. Rowe T. Rowe
Price Price
Equity Growth
Income Stock Growth
Subacct. Subacct. Subacct.
---------- ---------- ----------
<S> <C> <C> <C>
Unit transactions, accumulated
net investment income and
realized capital gains............. 13,312 16,976 553,969
Adjustment for appreciation
(depreciation) to market value..... (12) 734 73,645
---------- ---------- ----------
Total Contract Owners' Equity........ 13,300 17,710 627,614
========== ========== ==========
</TABLE>
6. Purchases and Sales of Investment Securities
The aggregate cost of purchases and proceeds from sales of investments were as
follows:
<TABLE>
<CAPTION>
Six Months Ended June 30, 1995 or Commencement of Operations to June 30, 1995 and
Year Ended December 31, 1994 or Commencement of Operations to December 31, 1994
-------------------------------------------------------------------------------
1995 1994
Purchases Sales Purchases Sales
--------- ----- --------- -----
<S> <C> <C> <C> <C>
Endeavor Series Trust
Money Market Portfolio............................ $111,186 86,903 $ 85,906 30,258
Managed Asset Allocation Portfolio................ 111,049 53,909 583,629 53,308
T. Rowe Price International Stock Portfolio....... 42,056 15,250 403,512 17,370
Quest for Value Equity Portfolio.................. 88,620 1,288 98,386 489
Quest for Value Small Cap Portfolio............... 116,343 26,682 293,269 8,768
U.S. Government Securities Portfolio.............. 45,100 13 -- --
T. Rowe Price Equity Income Portfolio............. 13,313 1 -- --
T. Rowe Price Growth Stock Portfolio.............. 17,000 25 -- --
WRL Series Fund, Inc.
Growth Portfolio.................................. 116,615 25,216 359,303 8,831
---------- ------- ----------- -------
$661,282 209,287 $1,824,005 119,024
========== ======= =========== =======
</TABLE>
11
<PAGE>
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Endeavor Variable Annuity
The AUSA Life Endeavor
Variable Annuity Account
Semi-Annual Report
June 30, 1995
[LOGO OF AUSA LIFE APPEARS HERE]
