Variflex                                                  Item 24.b Exhibit (13)


                                  EQUITY SERIES
                            (formerly GROWTH SERIES)
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       765.30
                               (1+T)^1                  =     (0.76530)^1
                                1+T                     =      0.76530
                                  T                     =     -0.2347

5 Years

                     1000      (1+T)^5                  =     1,564.20
                              ((1+T)^5)^1/5             =     (1.5642)^1/5
                                1+T                     =      1.09360
                                  T                     =      0.0936

10 Years

                     1000      (1+T)^10                 =     3,314.32
                              ((1+T)^10)^1/10           =     (3.3143)^1/10
                                1+T                     =      1.12730
                                  T                     =      0.1273

16.56 Years (From June 8, 1984)

                     1000      (1+T)^16.56              =     5,101.03
                              ((1+T)^16.56)^1/16.56     =     (5.10103)^1/16.56
                                1+T                     =      1.10340
                                  T                     =      0.1034

                             LARGE CAP VALUE SERIES
                        (formerly GROWTH - INCOME SERIES)
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       819.90
                               (1+T)^1                  =     (0.8199)^1
                                1+T                     =      0.81990
                                  T                     =     -0.1801

5 Years

                     1000      (1+T)^5                  =     1,250.96
                              ((1+T)^5)^1/5             =     (1.25096)^1/5
                                1+T                     =      1.04580
                                  T                     =      0.0458

10 Years

                     1000      (1+T)^10                 =     2,320.01
                              ((1+T)^10)^1/10           =     (2.32001)^1/10
                                1+T                     =      1.08780
                                  T                     =      0.0878

16.56 Years (From June 8, 1984)

                     1000      (1+T)^16.56              =     4,717.20
                              ((1+T)^16.56)^1/16.56     =     (4.71720)^1/16.56
                                1+T                     =      1.09820
                                  T                     =      0.0982

                               MONEY MARKET SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       937.00
                               (1+T)^1                  =     (0.9370)^1
                                1+T                     =      0.93700
                                  T                     =     -0.0630

5 Years

                     1000      (1+T)^5                  =     1,014.58
                              ((1+T)^5)^1/5             =     (1.01458)^1/5
                                1+T                     =      1.00290
                                  T                     =      0.0029

10 Years

                     1000      (1+T)^10                 =     1,041.76
                              ((1+T)^10)^1/10           =     (1.04176)^1/10
                                1+T                     =      1.00410
                                  T                     =      0.0041

16.56 Years (From June 8, 1984)

                     1000      (1+T)^16.56              =     1,424.60
                              ((1+T)^16.56)^1/16.56     =     (1.42460)^1/16.56
                                1+T                     =      1.02160
                                  T                     =      0.0216

                               MONEY MARKET YIELD

             Money Market Series (Series C) as of December 31, 2000


CALCULATION OF CHANGE IN UNIT VALUE:
-----------------------------------


(Underlying     Underlying)
(Fund Price     Fund Price)
( 12-31-00   -   12-25-00 )
 ------------------------- = Weekly Earnings
(  Underlying Fund Price  )
(        12-25-00         )


12.69358302 - 12.6810569
------------------------ = .000987782
       12.6810569


                                                                            Base
[(1 + Weekly Earnings)^1/7 - (Daily M&E Charge + Daily Admin. Fee)]^7 - 1 = Period
                                                                            Return


[(1 +.000987782)^1/7 - (.000032876712 +.000003938633)]^7 - 1 = .000729885


CURRENT 7-DAY YIELD:
-------------------

(Base Period Return)365/7 = Current 7-Day Yield

(.000729885)365/7 = 3.81%


EFFECTIVE YIELD:
---------------

[(Base Period Return + 1)^365/7] - 1 = Effective Yield

[(.000729885+ 1)^365/7] - 1 = 3.88%

                                  GLOBAL SERIES
                       (formerly WORLDWIDE EQUITY SERIES)
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       913.40
                               (1+T)^1                  =     (0.9134)^1
                                1+T                     =      0.91340
                                  T                     =     -0.0866

5 Years

                     1000      (1+T)^5                  =     1,940.66
                              ((1+T)^5)^1/5             =     (1.94066)^1/5
                                1+T                     =      1.14180
                                  T                     =      0.1418

10 Years

                     1000      (1+T)^10                 =     2,854.81
                              ((1+T)^10)^1/10           =     (2.85481)^1/10
                                1+T                     =      1.11060
                                  T                     =      0.1106

16.56 Years (From June 8, 1984)

                     1000      (1+T)^16.56              =     1,660.58
                              ((1+T)^16.56)^1/16.56     =     (1.66058)^1/16.56
                                1+T                     =      1.03110
                                  T                     =      0.0311

                            DIVERSIFIED INCOME SERIES
                       (formerly HIGH GRADE INCOME SERIES)
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       962.70
                               (1+T)^1                  =     (0.9627)^1
                                1+T                     =      0.96270
                                  T                     =     -0.0373

5 Years

                     1000      (1+T)^5                  =       963.54
                              ((1+T)^5)^1/5             =     (0.96354)^1/5
                                1+T                     =      0.99260
                                  T                     =     -0.0074

10 Years

                     1000      (1+T)^10                 =     1,346.53
                              ((1+T)^10)^1/10           =     (1.34653)^1/10
                                1+T                     =      1.03020
                                  T                     =      0.0302

15.67 Years (From date of inception April 30, 1985)

                     1000      (1+T)^15.67              =     1,868.49
                              ((1+T)^15.67)^1/15.67     =     (1.86849)^1/15.67
                                1+T                     =      1.04070
                                  T                     =      0.0407

                             LARGE CAP GROWTH SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


 .66 Years (From date of inception May 1, 2000)

                     1000      (1+T)^1/.66              =       710.20
                              ((1+T)^.66)^1/.66         =     (0.71020)^1/1
                                1+T                     =      0.71020
                                  T                     =     -0.2898


                              ENHANCED INDEX SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       789.10
                               (1+T)^1                  =     (0.7891)^1
                                1+T                     =      0.78910
                                  T                     =     -0.2109
1.66 Years (From date of inception May 3, 1999)

                     1000      (1+T)^1/1.66             =       882.24
                              ((1+T)^1.66)^1/1.66       =     (0.88224)^1/1.66
                                1+T                     =      0.92730
                                  T                     =     -0.0727


                              INTERNATIONAL SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       695.50
                               (1+T)^1                  =     (0.6955)^1
                                1+T                     =      0.69550
                                  T                     =     -0.3045

1.66 Years (From date of inception May 3, 1999)

                     1000      (1+T)^1/1.66             =       907.49
                              ((1+T)^1.66)^1/1.66       =     (0.90749)^1/1.66
                                1+T                     =      0.94320
                                  T                     =     -0.0568


                              MID CAP GROWTH SERIES
                            (formerly MID CAP SERIES)
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =     1,043.60
                               (1+T)^1                  =     (1.0436)^1
                                1+T                     =      1.04360
                                  T                     =      0.0436

5 Years

                     1000      (1+T)^5                  =     2,681.73
                              ((1+T)^5)^1/5             =     (2.68173)^1/5
                                1+T                     =      1.21810
                                  T                     =      0.2181

8.25 Years (From date of inception October 1, 1992)

                     1000      (1+T)^8.25               =     4,014.56
                              ((1+T)^8.25)^1/8.25       =     (4.01456)^1/8.25
                                1+T                     =      1.18350
                                  T                     =      0.1835


                         GLOBAL STRATEGIC INCOME SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       916.70
                               (1+T)^1                  =     (0.91670)^1
                                1+T                     =      0.91670
                                  T                     =     -0.0833

5 Years

                     1000      (1+T)^5                  =     1,073.05
                              ((1+T)^5)^1/5             =     (1.07305)^1/5
                                1+T                     =      1.01420
                                  T                     =      0.0142

5.58 Years (From date of inception June 1, 1995)

                     1000      (1+T)^5.58               =     1,147.10
                              ((1+T)^5.58)^1/5.58       =     (1.1471)^1/5.58
                                1+T                     =      1.02490
                                  T                     =      0.0249


                              CAPITAL GROWTH SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


 .66 Years (From date of inception May 1, 2000)

                     1000      (1+T)^1/.66              =       716.60
                              ((1+T)^.66)^1/.66         =     (0.71660)^1/1
                                1+T                     =      0.71660
                                  T                     =     -0.2834


                           GLOBAL TOTAL RETURN SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       785.00
                               (1+T)^1                  =     (0.7850)^1
                                1+T                     =      0.78500
                                  T                     =     -0.2150

5 Years

                     1000      (1+T)^5                  =     1,120.41
                              ((1+T)^5)^1/5             =     (1.12041)^1/5
                                1+T                     =      1.02300
                                  T                     =      0.0230

5.58 Years (From date of inception June 1, 1995)

                     1000      (1+T)^5.58               =     1,190.22
                              ((1+T)^5.58)^1/5.58       =     (1.19022)^1/5.58
                                1+T                     =      1.03170
                                  T                     =      0.0317


                         MANAGED ASSET ALLOCATION SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       873.00
                               (1+T)^1                  =     (0.8730)^1
                                1+T                     =      0.87300
                                  T                     =     -0.1270

5 Years

                     1000      (1+T)^5                  =     1,412.41
                              ((1+T)^5)^1/5             =     (1.41241)^1/5
                                1+T                     =      1.07150
                                  T                     =      0.0715

5.58 Years (From date of inception June 1, 1995)

                     1000      (1+T)^5.58               =     1,499.46
                              ((1+T)^5.58)^1/5.58       =     (1.49946)^1/5.58
                                1+T                     =      1.07530
                                  T                     =      0.0753


                              EQUITY INCOME SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =     1,005.10
                               (1+T)^1                  =     (1.00510)^1
                                1+T                     =      1.00510
                                  T                     =      0.0051

5 Years

                     1000      (1+T)^5                  =     1,627.42
                              ((1+T)^5)^1/5             =     (1.62742)^1/5
                                1+T                     =      1.10230
                                  T                     =      0.1023

5.58 Years (From date of inception June 1, 1995)

                     1000      (1+T)^5.58               =     1,901.85
                              ((1+T)^5.58)^1/5.58       =     (1.90185)^1/5.58
                                1+T                     =      1.12210
                                  T                     =      0.1221


                                HIGH YIELD SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       867.20
                               (1+T)^1                  =     (0.86720)^1
                                1+T                     =      0.86720
                                  T                     =     -0.1328

4.40 Years (From date of inception August 5, 1996)

                     1000      (1+T)^4.40               =     1,040.21
                              ((1+T)^4.40)^1/4.40       =     (1.04021)^1/4.40
                                1+T                     =      1.00900
                                  T                     =      0.0090


                             SMALL CAP VALUE SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


 .66 Years (From date of inception May 1, 2000)

                     1000      (1+T)^1/.66              =       964.90
                              ((1+T)^.66)^1/.66         =     (0.96490)^1/1
                                1+T                     =      0.96490
                                  T                     =     -0.0351


                             SOCIAL AWARENESS SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       764.10
                               (1+T)^1                  =     (0.76410)^1
                                1+T                     =      0.76410
                                  T                     =     -0.2359

5 Years

                     1000      (1+T)^5                  =     1,636.30
                              ((1+T)^5)^1/5             =     (1.63630)^1/5
                                1+T                     =      1.10350
                                  T                     =      0.1035

9.67 Years (From date of inception May 1, 1991)

                     1000      (1+T)^9.67               =     2,447.92
                              ((1+T)^9.67)^1/9.67       =     (2.44792)^1/9.67
                                1+T                     =      1.09700
                                  T                     =      0.0970


                                TECHNOLOGY SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


 .66 Years (From date of inception May 1, 2000)

                     1000      (1+T)^1/.66              =       540.90
                              ((1+T)^.66)^1/.66         =     (0.54090)^1/1
                                1+T                     =      0.54090
                                  T                     =     -0.4591


                              MID CAP VALUE SERIES
                             (formerly VALUE SERIES)
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =     1,212.30
                               (1+T)^1                  =     (1.21230)^1
                                1+T                     =      1.21230
                                  T                     =      0.2123

3.67 Years (From date of inception May 1, 1997)

                     1000      (1+T)^3.67               =     1,513.39
                              ((1+T)^3.67)^1/3.67       =     (1.51339)^1/3.67
                                1+T                     =      1.23020
                                  T                     =      0.2302


                      MAIN STREET GROWTH AND INCOME(R) SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


 .66 Years (From date of inception May 1, 2000)

                     1000      (1+T)^1/.66              =       804.00
                              ((1+T)^.66)^1/.66         =     (0.8040)^1/1
                                1+T                     =      0.80400
                                  T                     =     -0.1960


                             SMALL CAP GROWTH SERIES
                           (formerly SMALL CAP SERIES)
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       801.60
                               (1+T)^1                  =     (0.80160)^1
                                1+T                     =      0.80160
                                  T                     =     -0.1984

3.21 Years (From date of inception October 15, 1997)

                     1000      (1+T)^3.21               =     1,337.72
                              ((1+T)^3.21)^1/3.21       =     (1.33772)^1/3.21
                                1+T                     =      1.15660
                                  T                     =      0.1566


                                SELECT 25 SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
         (WITH CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       734.90
                               (1+T)^1                  =     (0.73490)^1
                                1+T                     =      0.73490
                                  T                     =     -0.2651

1.66 Years (From date of inception May 3, 1999)

                     1000      (1+T)^1/1.66             =       909.41
                              ((1+T)^1.66)^1/1.66       =     (0.90941)^1/1.66
                                1+T                     =      0.94440
                                  T                     =     -0.0556

                                  EQUITY SERIES
                            (formerly GROWTH SERIES)
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       861.90
                               (1+T)^1                  =     (0.86190)^1
                                1+T                     =      0.86190
                                  T                     =     -0.1381

5 Years

                     1000      (1+T)^5                  =     1,759.20
                              ((1+T)^5)^1/5             =     (1.75920)^1/5
                                1+T                     =      1.11960
                                  T                     =      0.1196

10 Years

                     1000      (1+T)^10                 =     3,832.67
                              ((1+T)^10)^1/10           =     (3.83267)^1/10
                                1+T                     =      1.14380
                                  T                     =      0.1438

16.56 Years (From June 8, 1984)

                     1000      (1+T)^16.56              =     6,551.41
                              ((1+T)^16.56)^1/16.56     =     (6.55141)^1/16.56
                                1+T                     =      1.12020
                                  T                     =      0.1202

19 Years (From January 1, 1982)

                     1000      (1+T)^19                 =     8,894.65
                              ((1+T)^19)^1/19           =     (8.89465)^1/19
                                1+T                     =      1.12190
                                  T                     =      0.1219

                             LARGE CAP VALUE SERIES
                        (formerly GROWTH - INCOME SERIES)
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       921.30
                               (1+T)^1                  =     (0.92130)^1
                                1+T                     =      0.92130
                                  T                     =     -0.0787

5 Years

                     1000      (1+T)^5                  =     1,437.63
                              ((1+T)^5)1/5              =     (1.43763)^1/5
                                1+T                     =      1.07530
                                  T                     =      0.0753

10 Years

                     1000      (1+T)^10                 =     2,741.22
                              ((1+T)^10)^1/10           =     (2.74122)^1/10
                                1+T                     =      1.10610
                                  T                     =      0.1061

16.56 Years (From June 8, 1984)

                     1000      (1+T)^16.56              =     5,870.40
                              ((1+T)^16.56)^1/16.56     =     (5.87040)^1/16.56
                                1+T                     =      1.11280
                                  T                     =      0.1128

19 Years (From January 1, 1982)

                     1000      (1+T)^19                 =     7,066.98
                              ((1+T)^19)^1/19           =     (7.06698)^1/19
                                1+T                     =      1.10840
                                  T                     =      0.1084

                               MONEY MARKET SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =     1,047.10
                               (1+T)^1                  =     (1.04710)^1
                                1+T                     =      1.04710
                                  T                     =      0.0471

5 Years

                     1000      (1+T)^5                  =     1,213.15
                              ((1+T)^5)^1/5             =     (1.21315)^1/5
                                1+T                     =      1.03940
                                  T                     =      0.0394

10 Years

                     1000      (1+T)^10                 =     1,397.03
                              ((1+T)^10)^1/10           =     (1.39703)^1/10
                                1+T                     =      1.03400
                                  T                     =      0.0340

16.56 Years (From June 8, 1984)

                     1000      (1+T)^16.56              =     2,109.27
                              ((1+T)^16.56)^1/16.56     =     (2.10927)^1/16.56
                                1+T                     =      1.04610
                                  T                     =      0.0461

19 Years (From January 1, 1982)

                     1000      (1+T)^19                 =     2,573.07
                              ((1+T)^19)^1/19           =     (2.57307)^1/19
                                1+T                     =      1.05100
                                  T                     =      0.0510

                                  GLOBAL SERIES
                       (formerly WORLDWIDE EQUITY SERIES)
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =     1,022.90
                               (1+T)^1                  =     (1.02290)^1
                                1+T                     =      1.02290
                                  T                     =      0.0229

5 Years

                     1000      (1+T)^5                  =     2,247.33
                              ((1+T)^5)^1/5             =     (2.24733)^1/5
                                1+T                     =      1.17580
                                  T                     =      0.1758

10 Years

                     1000      (1+T)^10                 =     3,485.77
                              ((1+T)^10)^1/10           =     (3.48577)^1/10
                                1+T                     =      1.13300
                                  T                     =      0.1330

16.56 Years (From June 8, 1984)

                     1000      (1+T)^16.56              =     2,806.60
                              ((1+T)^16.56)^1/16.56     =     (2.80660)^1/16.56
                                1+T                     =      1.06430
                                  T                     =      0.0643

                            DIVERSIFIED INCOME SERIES
                       (formerly HIGH GRADE INCOME SERIES)
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =     1,072.70
                               (1+T)^1                  =     (1.07270)^1
                                1+T                     =      1.07270
                                  T                     =      0.0727

5 Years

                     1000      (1+T)^5                  =     1,160.40
                              ((1+T)^5)^1/5             =     (1.16040)^1/5
                                1+T                     =      1.03020
                                  T                     =      0.0302

10 Years

                     1000      (1+T)^10                 =     1,706.53
                              ((1+T)^10)^1/10           =     (1.70653)^1/10
                                1+T                     =      1.05490
                                  T                     =      0.0549

15.67 Years (From date of inception April 30, 1985)

                     1000      (1+T)^15.67              =     2,566.68
                              ((1+T)^15.67)^1/15.67     =     (2.56668)^1/15.67
                                1+T                     =      1.06200
                                  T                     =      0.0620

                            DIVERSIFIED INCOME SERIES


Yield Calculation As Of December 31, 2000 = 7.55%


 [     (563,442.71)           ]^6
2[----------------------- + 1 ]   - 1
 [(3,544,709.9978)(25.66)     ]


 [(( 563,442.71  )     )^6]
2[((-------------) + 1 )  ] - 1
 [((90,957,258.54)     )  ]


2[((.006194588+ 1)^6) - 1]


2[(1.006194588)^6 - 1]


2[(1.0377- 1)]


2(.0377)

              =     .0755

                             LARGE CAP GROWTH SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


 .66 Years (From date of inception May 1, 2000)

                     1000      (1+T)^1/.66              =       792.00
                              ((1+T)^.66)^1/.66         =     (0.79200)^1/1
                                1+T                     =      0.79200
                                  T                     =     -0.2080


                              ENHANCED INDEX SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       887.80
                               (1+T)^1                  =     (0.88780)^1
                                1+T                     =      0.88780
                                  T                     =     -0.1122

1.66 Years (From date of inception May 3, 1999)

                     1000      (1+T)^1/1.66             =       989.07
                              ((1+T)^1.66)^1/1.66       =     (0.98907)^1/1.66
                                1+T                     =      0.99340
                                  T                     =     -0.0066


                              INTERNATIONAL SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       786.00
                               (1+T)^1                  =     (0.78600)^1
                                1+T                     =      0.78600
                                  T                     =     -0.2140

1.66 Years (From date of inception May 3, 1999)

                     1000      (1+T)^1/1.66             =     1,013.98
                              ((1+T)^1.66)^1/1.66       =     (1.01398)^1/1.66
                                1+T                     =      1.00840
                                  T                     =      0.0084


                              MID CAP GROWTH SERIES
                            (formerly MID CAP SERIES)
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =     1,153.70
                               (1+T)^1                  =     (1.15370)^1
                                1+T                     =      1.15370
                                  T                     =      0.1537

5 Years

                     1000      (1+T)^5                  =     2,972.04
                              ((1+T)^5)^1/5             =     (2.97204)^1/5
                                1+T                     =      1.24340
                                  T                     =      0.2434

8.25 Years (From date of inception October 1, 1992)

                     1000      (1+T)^8.25               =     4,597.16
                              ((1+T)^8.25)^1/8.25       =     (4.59716)^1/8.25
                                1+T                     =      1.20310
                                  T                     =      0.2031


                         GLOBAL STRATEGIC INCOME SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =     1,026.50
                               (1+T)^1                  =     (1.02650)^1
                                1+T                     =      1.02650
                                  T                     =      0.0265

5 Years

                     1000      (1+T)^5                  =     1,266.59
                              ((1+T)^5)^1/5             =     (1.26659)^1/5
                                1+T                     =      1.04840
                                  T                     =      0.0484

5.58 Years (From date of inception June 1, 1995)

                     1000      (1+T)^5.58               =     1,353.90
                              ((1+T)^5.58)^1/5.58       =     (1.35390)^1/5.58
                                1+T                     =      1.05580
                                  T                     =      0.0558


                              CAPITAL GROWTH SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)



 .66 Years (From date of inception May 1, 2000)

                     1000      (1+T)^1/.66              =       799.00
                              ((1+T)^.66)^1/.66         =     (0.79900)^1/1
                                1+T                     =      0.79900
                                  T                     =     -0.2010


                           GLOBAL TOTAL RETURN SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       883.40
                               (1+T)^1                  =     (0.88340)^1
                                1+T                     =      0.88340
                                  T                     =     -0.1166
5 Years

                     1000      (1+T)^5                  =     1,310.06
                              ((1+T)^5)1/5              =     (1.31006)^1/5
                                1+T                     =      1.05550
                                  T                     =      0.0555
5.58 Years (From date of inception June 1, 1995)

                     1000      (1+T)^5.58               =     1,393.72
                              ((1+T)^5.58)^1/5.58       =     (1.39372)^1/5.58
                                1+T                     =      1.06130
                                  T                     =      0.0613


                         MANAGED ASSET ALLOCATION SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       979.00
                               (1+T)^1                  =     (0.97900)^1
                                1+T                     =      0.97900
                                  T                     =     -0.0210

5 Years

                     1000      (1+T)^5                  =     1,619.31
                              ((1+T)^5)^1/5             =     (1.61931)^1/5
                                1+T                     =      1.10120
                                  T                     =      0.1012

5.58 Years (From date of inception June 1, 1995)

                     1000      (1+T)^5.58               =     1,725.49
                              ((1+T)^5.58)^1/5.58       =     (1.72549)^1/5.58
                                1+T                     =      1.10270
                                  T                     =      0.1027


                              EQUITY INCOME SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =     1,115.20
                               (1+T)^1                  =     (1.11520)^1
                                1+T                     =      1.11520
                                  T                     =      0.1152

5 Years

                     1000      (1+T)^5                  =     1,841.62
                              ((1+T)^5)^1/5             =     (1.84162)^1/5
                                1+T                     =      1.12990
                                  T                     =      0.1299

5.58 Years (From date of inception June 1, 1995)

                     1000      (1+T)^5.58               =     2,139.19
                              ((1+T)^5.58)^1/5.58       =     (2.13919)^1/5.58
                                1+T                     =      1.14600
                                  T                     =      0.1460


                                HIGH YIELD SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       972.60
                               (1+T)^1                  =     (0.97260)^1
                                1+T                     =      0.97260
                                  T                     =     -0.0274
4.40 Years (From date of inception August 5, 1995)

                     1000      (1+T)^4.40               =     1,208.60
                              ((1+T)^4.40)^1/4.40       =     (1.20860)^1/4.40
                                1+T                     =      1.04400
                                  T                     =      0.0440


                             SMALL CAP VALUE SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


 .66 Years (From date of inception May 1, 2000)

                     1000      (1+T)^1/.66              =     1,065.00
                              ((1+T)^.66)1/.66          =     (1.06500)^1/1
                                1+T                     =      1.06500
                                  T                     =      0.0650


                             SOCIAL AWARENESS SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       860.70
                               (1+T)^1                  =     (0.86070)^1
                                1+T                     =      0.86070
                                  T                     =     -0.1393
5 Years

                     1000      (1+T)^5                  =     1,840.81
                              ((1+T)^5)^1/5             =     (1.84081)^1/5
                                1+T                     =      1.12980
                                  T                     =      0.1298

9.67 Years (From date of inception May 1, 1991)

                     1000      (1+T)^9.67               =     2,940.57
                              ((1+T)^9.67)^1/9.67       =     (2.94057)^1/9.67
                                1+T                     =      1.11800
                                  T                     =      0.1180


                                TECHNOLOGY SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


 .66 Years (From date of inception May 1, 2000)

                     1000      (1+T)^1/.66              =       608.00
                              ((1+T)^.66)^1/.66         =     (0.6080)^1/1
                                1+T                     =      0.60800
                                  T                     =     -0.3920


                              MID CAP VALUE SERIES
                             (formerly VALUE SERIES)
                      TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)

1 Year

                     1000      (1+T)^1                  =     1,322.40
                               (1+T)^1                  =     (1.32240)^1
                                1+T                     =      1.32240
                                  T                     =      0.3224

3.67 Years (From date of inception May 1, 1997)

                     1000      (1+T)^3.67               =     2,330.63
                              ((1+T)^3.67)^1/3.67       =     (2.33063)^1/3.67
                                1+T                     =      1.25930
                                  T                     =      0.2593


                      MAIN STREET GROWTH AND INCOME(R) SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


 .66 Years (From date of inception May 1, 2000)

                     1000      (1+T)^1/.66              =       894.00
                              ((1+T)^.66)^1/.66         =     (0.89400)^1/1
                                1+T                     =      0.89400
                                  T                     =     -0.1060


                             SMALL CAP GROWTH SERIES
                           (formerly SMALL CAP SERIES)
                      TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       901.40
                               (1+T)^1                  =     (0.90140)^1
                                1+T                     =      0.90140
                                  T                     =     -0.0986

3.21 Years (From date of inception October 15, 1997)

                     1000      (1+T)^3.21               =     1,755.88
                              ((1+T)^3.21)^1/3.21       =     (1.75588)^1/3.21
                                1+T                     =      1.19170
                                  T                     =      0.1917


                                SELECT 25 SERIES
               AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
        (WITHOUT CONTINGENT DEFERRED SALES CHARGE AND ADMINISTRATIVE FEE)


1 Year

                     1000      (1+T)^1                  =       828.90
                               (1+T)^1                  =     (0.82890)^1
                                1+T                     =      0.82890
                                  T                     =     -0.1711
1.66 Years (From date of inception May 3, 1999)

                     1000      (1+T)^1/1.66             =     1,016.99
                              ((1+T)^1.66)^1/1.66       =     (1.01699)^1/1.66
                                1+T                     =      1.01020
                                  T                     =      0.0102

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES A (EQUITY, FORMERLY GROWTH)

Quotation  of Total  Return for the period of  January 1, 1991 to  December  31,
2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000      $  861.90   -   $1,000        $(138.10)   /   $1,000    =    (13.81)%
1999       1,068.00   -    1,000           68.40    /    1,000    =      6.84%
1998       1,239.22   -    1,000          239.22    /    1,000    =     23.92%
1997       1,271.63   -    1,000          271.63    /    1,000    =     27.16%
1996       1,212.19   -    1,000          212.19    /    1,000    =     21.22%
1995       1,351.11   -    1,000          351.11    /    1,000    =     35.11%
1994         971.83   -    1,000          (28.17)   /    1,000    =     (2.82)%
1993       1,123.49   -    1,000          123.49    /    1,000    =     12.35%
1992       1,098.28   -    1,000           98.28    /    1,000    =      9.83%
1991       1,344.49   -    1,000          344.49    /    1,000    =     34.45%

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES B (LARGE CAP VALUE, FORMERLY GROWTH - INCOME)

Quotation  of Total  Return for the period of  January 1, 1991 to  December  31,
2000.


                           Initial Investment = $1,000


                                        INCREASE
           ENDING         INITIAL      (DECREASE)        INITIAL       % INCREASE
           VALUE           VALUE        IN VALUE          VALUE        (DECREASE)

2000      $  921.30   -   $1,000         $(78.70)    /   $1,000    =     (7.87)%
1999       1,006.20   -    1,000            6.20     /    1,000    =      0.62%
1998       1,062.52   -    1,000           62.52     /    1,000    =      6.25%
1997       1,249.89   -    1,000          249.89     /    1,000    =     24.99%
1996       1,168.00   -    1,000          168.00     /    1,000    =     16.80%
1995       1,285.21   -    1,000          285.21     /    1,000    =     28.52%
1994         958.60   -    1,000          (41.40)    /    1,000    =     (4.14)%
1993       1,082.97   -    1,000           82.97     /    1,000    =      8.30%
1992       1,049.88   -    1,000           49.88     /    1,000    =      4.99%
1991       1,361.55   -    1,000          361.55     /    1,000    =     36.16%

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES C (MONEY MARKET)

Quotation  of Total  Return for the period of  January 1, 1991 to  December  31,
2000.


                           Initial Investment = $1,000


                                        INCREASE
           ENDING         INITIAL      (DECREASE)       INITIAL       % INCREASE
           VALUE           VALUE        IN VALUE         VALUE        (DECREASE)

2000      $1,047.10   -   $1,000          $47.10    /   $1,000    =      4.71%
1999       1,034.00   -    1,000           34.00    /    1,000    =      3.40%
1998       1,039.88   -    1,000           39.01    /    1,000    =      3.90%
1997       1,038.88   -    1,000           38.88    /    1,000    =      3.89%
1996       1,038.09   -    1,000           38.09    /    1,000    =      3.81%
1995       1,041.44   -    1,000           41.44    /    1,000    =      4.14%
1994       1,024.88   -    1,000           24.88    /    1,000    =      2.49%
1993       1,013.53   -    1,000           13.53    /    1,000    =      1.35%
1992       1,020.08   -    1,000           20.08    /    1,000    =      2.01%
1991       1,043.88   -    1,000           43.88    /    1,000    =      4.39%

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES D (GLOBAL, FORMERLY WORLDWIDE EQUITY)

Quotation  of Total  Return for the period of  January 1, 1991 to  December  31,
2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000      $1,022.90   -   $1,000         $ 22.90    /   $1,000    =      2.29%
1999       1,517.90   -    1,000          517.90    /    1,000          51.79%
1998       1,186.76   -    1,000          186.76    /    1,000          18.68%
1997       1,051.69   -    1,000           51.69    /    1,000    =      5.17%
1996       1,159.87   -    1,000          159.87    /    1,000    =     15.99%
1995       1,095.45   -    1,000           95.45    /    1,000    =      9.55%
1994       1,015.11   -    1,000           15.11    /    1,000    =      1.51%
1993       1,300.58   -    1,000          300.58    /    1,000    =     30.06%
1992         962.18   -    1,000          (37.82)   /    1,000    =     (3.78)%
1991*      1,030.96   -    1,000           30.96    /    1,000    =      3.01%

*From May 1, 1991 to December 31, 1991.

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES E (DIVERSIFIED INCOME, FORMERLY HIGH GRADE INCOME)
---------------------------------------------------------

Quotation  of Total  Return for the period of  January 1, 1991 to  December  31,
2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000      $1,072.70   -   $1,000         $ 72.70    /   $1,000    =     7.27%
1999       1,049.30   -    1,000           49.30    /    1,000    =     4.93%
1998       1,067.01   -    1,000           67.01    /    1,000    =     6.70%
1997       1,087.14   -    1,000           87.14    /    1,000    =     8.71%
1996         981.00   -    1,000          (19.00)   /    1,000    =    (1.90)%
1995       1,171.70   -    1,000          171.70    /    1,000    =    17.17%
1994         919.59   -    1,000          (80.41)   /    1,000    =    (8.04)%
1993       1,112.80   -    1,000          112.80    /    1,000    =    11.28%
1992       1,061.60   -    1,000           61.60    /    1,000    =     6.16%
1991       1,155.69   -    1,000          155.69    /    1,000    =    15.57%

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES G (LARGE CAP GROWTH)

Quotation of Total Return for the period of May 31, 2000 to December 31, 2000.


                           Initial Investment = $1,000


                                      INCREASE
           ENDING       INITIAL      (DECREASE)       INITIAL       % INCREASE
           VALUE         VALUE        IN VALUE         VALUE        (DECREASE)

2000*     $792.00   -   $1,000        $(208.00)   /   $1,000    =    (20.80)%

*From May 1, 2000 to December 31, 2000

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES H (ENHANCED INDEX)

Quotation of Total Return for the period of May 3, 1999 to December 31, 2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000      $  887.80   -   $1,000        $(112.20)   /   $1,000    =    (11.22)%
1999*      1,074.20   -    1,000           74.20    /    1,000    =     11.40%

*From May 3, 1999 to December 31, 1999

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES I (INTERNATIONAL)

Quotation of Total Return for the period of May 3, 1999 to December 31, 2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000      $  786.00   -   $1,000        $(214.00)   /   $1,000    =    (21.40)%
1999*      1,183.62   -    1,000          183.62    /    1,000    =     29.0%

*From May 3, 1999 to December 31, 1999

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES J (MID CAP GROWTH, FORMERLY MID CAP)

Quotation  of Total  Return for the period of  October 1, 1992 to  December  31,
2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000      $1,153.70   -   $1,000         $153.70    /   $1,000    =     15.37%
1999       1,599.00   -    1,000          599.00    /    1,000    =     59.9%
1998       1,165.65   -    1,000          165.65    /    1,000    =     16.57%
1997       1,185.25   -    1,000          185.25    /    1,000    =     18.52%
1996       1,166.24   -    1,000          166.24    /    1,000    =     16.62%
1995       1,180.15   -    1,000          180.15    /    1,000    =     18.02%
1994         937.72   -    1,000          (62.28)   /    1,000    =     (6.23)%
1993       1,122.99   -    1,000          122.99    /    1,000    =     12.30%
1992*      1,244.00   -    1,000          244.00    /    1,000    =     24.40%

*From October 1, 1992 to December 31, 1992.

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES K (GLOBAL STRATEGIC INCOME)

Quotation of Total Return for the period of June 1, 1995 to December 31, 2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000      $1,026.50   -   $1,000         $ 26.50    /   $1,000    =      2.65%
1999         920.00   -    1,000          (80.00)   /    1,000    =     (8.0)%
1998       1,056.00   -    1,000           56.00    /    1,000    =      5.60%
1997       1,041.67   -    1,000           41.67    /    1,000    =      4.17%
1996       1,122.54   -    1,000          122.54    /    1,000    =     12.25%
1995*      1,069.00   -    1,000           69.00    /    1,000    =      6.90%

*From June 1, 1995 to December 31, 1995.

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES L (CAPITAL GROWTH)

Quotation of Total Return for the period of May 31, 2000 to December 31, 2000.


                           Initial Investment = $1,000


                                      INCREASE
           ENDING       INITIAL      (DECREASE)       INITIAL       % INCREASE
           VALUE         VALUE        IN VALUE         VALUE        (DECREASE)

2000*     $799.00   -   $1,000        $(201.00)   /   $1,000    =    (20.10)%

*From May 1, 2000 to December 31, 2000

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES M (GLOBAL TOTAL RETURN)

Quotation of Total Return for the period of June 1, 1995 to December 31, 2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000      $  883.40   -   $1,000        $(116.60)   /   $1,000    =    (11.66)%
1999       1,126.30   -    1,000          126.30    /    1,000    =     12.63%
1998       1,112.79   -    1,000          112.79    /    1,000    =     11.28%
1997       1,048.29   -    1,000           48.29    /    1,000    =      4.83%
1996       1,128.76   -    1,000          128.76    /    1,000    =     12.88%
1995*      1,064.00   -    1,000           64.00    /    1,000    =      6.40%

*From June 1, 1995 to December 31, 1995.

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES N (MANAGED ASSET ALLOCATION)

Quotation of Total Return for the period of June 1, 1995 to December 31, 2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000      $  979.00   -   $1,000         $(21.00)   /   $1,000    =     (2.10)%
1999       1,084.30   -    1,000           84.30    /    1,000    =      8.43%
1998       1,170.63   -    1,000          170.63    /    1,000    =     17.06%
1997       1,170.18   -    1,000          170.18    /    1,000    =     17.02%
1996       1,113.51   -    1,000          113.51    /    1,000    =     11.35%
1995*      1,066.00   -    1,000           66.00    /    1,000    =      6.60%

*From June 1, 1995 to December 31, 1995.

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES O (EQUITY INCOME)

Quotation of Total Return for the period of June 1, 1995 to December 31, 2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000      $1,115.20   -   $1,000         $115.20    /   $1,000    =     11.52%
1999       1,019.10   -    1,000           19.10    /    1,000    =      1.91%
1998       1,076.62   -    1,000           76.62    /    1,000    =      7.66%
1997       1,269.23   -    1,000          269.23    /    1,000    =     26.92%
1996       1,185.89   -    1,000          185.89    /    1,000    =     18.59%
1995*      1,162.00   -    1,000          162.00    /    1,000    =     16.20%

*From June 1, 1995 to December 31, 1995.

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES P (HIGH YIELD)

Quotation of Total Return for the period of August 5, 1996 to December 31, 2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000      $  972.60   -   $1,000         $(27.40)   /   $1,000    =     (2.74)%
1999       1,080.00   -    1,000           80.00    /    1,000    =      8.0%
1998       1,046.34   -    1,000           46.34    /    1,000    =      4.63%
1997       1,118.76   -    1,000          118.76    /    1,000    =     11.88%
1996*      1,061.00   -    1,000           61.00    /    1,000    =      6.10%

*From August 5, 1996 to December 31, 1996.

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES Q (SMALL CAP VALUE)

Quotation of Total Return for the period of May 31, 2000 to December 31, 2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000*     $1,065.00   -   $1,000          $65.00    /   $1,000    =      6.50%

*From May 1, 2000 to December 31, 2000

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES S (SOCIAL AWARENESS)

Quotation of Total Return for the period of May 1, 1991 to December 31, 2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000      $  860.70   -   $1,000        $(139.30)   /   $1,000    =    (13.93)%
1999       1,158.00   -    1,000          158.00    /    1,000    =     15.80%
1998       1,298.42   -    1,000          298.42    /    1,000    =     29.84%
1997       1,211.73   -    1,000          211.73    /    1,000    =     21.17%
1996       1,174.08   -    1,000          174.08    /    1,000    =     17.41%
1995       1,262.45   -    1,000          262.45    /    1,000    =     26.25%
1994         950.41   -    1,000          (49.59)   /    1,000    =     (4.96)%
1993       1,105.48   -    1,000          105.48    /    1,000    =     10.55%
1992       1,149.95   -    1,000          149.95    /    1,000    =     15.00%
1991*      1,047.00   -    1,000           47.00    /    1,000    =      4.70%

*From May 1, 1991 to December 31, 1991.

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES T (TECHNOLOGY)

Quotation of Total Return for the period of May 31, 2000 to December 31, 2000.


                           Initial Investment = $1,000


                                      INCREASE
           ENDING       INITIAL      (DECREASE)       INITIAL       % INCREASE
           VALUE         VALUE        IN VALUE         VALUE        (DECREASE)

2000*     $608.00   -   $1,000        $(392.00)   /   $1,000    =    (39.20)%

*From May 1, 2000 to December 31, 2000

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES V (MID-CAP VALUE, FORMERLY VALUE)

Quotation of Total Return for the period of May 1, 1997 to December 31, 2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000      $1,322.40   -   $1,000         $322.40    /   $1,000    =     32.24%
1999       1,174.70   -    1,000          174.70    /    1,000    =     17.47%
1998       1,152.07   -    1,000          152.07    /    1,000    =     15.21%
1997*      1,292.95   -    1,000          292.95    /    1,000    =     29.30%

*From May 1, 1997 to December 31, 1997.

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES W (MAIN STREET GROWTH AND INCOME(R))

Quotation of Total Return for the period of May 31, 2000 to December 31, 2000.


                           Initial Investment = $1,000


                                      INCREASE
           ENDING       INITIAL      (DECREASE)       INITIAL       % INCREASE
           VALUE         VALUE        IN VALUE         VALUE        (DECREASE)

2000*     $894.00   -   $1,000        $(106.00)   /   $1,000    =    (10.60)%

*From May 1, 2000 to December 31, 2000

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES X (SMALL CAP GROWTH, FORMERLY SMALL CAP)

Quotation  of Total  Return for the period of October 15,  1997 to December  31,
2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000      $  901.40   -   $1,000         $(98.60)   /   $1,000    =     (9.86)%
1999       1,850.00   -    1,000          850.00    /    1,000    =     85.0%
1998       1,101.46   -    1,000          101.46    /    1,000    =     10.15%
1997*        956.00   -    1,000          (44.00)   /    1,000    =     (4.4)%

*From October 15, 1997 to December 31, 1997

                                    VARIFLEX
                          NON-STANDARDIZED TOTAL RETURN


SERIES Y (SELECT 25)

Quotation of Total Return for the period of May 3, 1999 to December 31, 2000.


                           Initial Investment = $1,000


                                        INCREASE
            ENDING        INITIAL      (DECREASE)       INITIAL       % INCREASE
            VALUE          VALUE        IN VALUE         VALUE        (DECREASE)

2000      $  828.90   -   $1,000        $(171.11)   /   $1,000    =    (17.11)%
1999*      1,145.26   -    1,000          145.26    /    1,000    =     22.70%

*From May 3, 1999 to December 31, 1999