485BPOS 1 slii485bpos.htm 485BPOS

As filed with the Securities and Exchange

Registration No. 33-57244

Commission on September 17, 2002

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
 

POST-EFFECTIVE AMENDMENT NO. 14

 

TO
 

FORM S-6

FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933

OF SECURITIES OF UNIT INVESTMENT TRUSTS

REGISTERED ON FORM N-8B-2

Select*Life Variable Account

(Exact Name of Registrant)
 

ReliaStar Life Insurance Company

20 Washington Avenue So.

Minneapolis, MN 55401

(Name and Address of Principal Executive Office of Depositor)

J. Neil McMurdie, Counsel

ReliaStar Life Insurance Company

151 Farmington Avenue, TS31, Hartford, Connecticut 06l56

(Name and Complete Address of Agent for Service)
 

cc: Kimberly J. Smith, Chief Counsel

ING Americas, Retail Products Group

1475 Dunwoody Drive, West Chester, Pennsylvania 19380

It is proposed that this filing will become effective:
 

X

  

immediately upon filing pursuant to paragraph (b) of Rule 485
     

on ______________ pursuant to paragraph (b) of Rule 485
 

Approximate Date of Proposed Public Offering: Continuous.
 

Indefinite number of units of interest in variable life insurance contracts

(Title of Securities Being Registered)
 

An indefinite amount of the securities being offered by the Registrant has been registered pursuant to Rule 24f-2 under the Investment Company Act of 1940. The Form 24f-2 for Registrant for the fiscal year ending December 31, 2001 was filed March 21, 2002.

SELECT« LIFE VARIABLE ACCOUNT
 

Cross Reference Sheet

(Reconciliation and Tie Sheet)
 

Item No. of Form N-8B-2


Part I -- Prospectus

1

Cover Page

2

Cover Page

3

Not Applicable

4

Distribution of the Policies

5

ReliaStar Life Insurance Company and the Variable Account

6

The Variable Account

7

Not Applicable

8

Not Applicable

9

Not Applicable

10

Summary; Death Benefit; Payment and Allocation of Premiums; Death Benefit Guarantee; Accumulation Value; Policy Lapse and Reinstatement; Surrender Benefits; Additional Information on the Investments of the Variable Account; Transfers; Policy Loans; Free Look and Conversion Rights; Voting Rights; General Provisions; Appendix A; Appendix B

11

Deductions and Charges; Investments of the Variable Account

12

Additional Information on the Investments of the Variable Account

13

Deductions and Charges

14

The Policies; General Provisions; Distribution of the Policies

15

Payment and Allocation of Premiums; Additional Information on the Investments of the Variable Account

16

Payment and Allocation of Premiums; Surrender Benefits; Additional Information on the Investments of the Variable Account

17

Surrender Benefits; Policy Loans; Free Look and Conversion Rights; General Provisions

18

The Variable Account; Additional Information on the Investments of the Variable Account; Payment and Allocation of Premiums

19

Voting Rights; General Provisions

20

Not Applicable

21

Policy Loans

22

Not Applicable

23

Bonding Arrangements

24

Definitions; General Provisions

25

ReliaStar Life Insurance Company

26

Not Applicable

27

ReliaStar Life Insurance Company; Other Contracts Issued by Us

28

Management

29

ReliaStar Life Insurance Company

30

Not Applicable

31

Not Applicable

32

Not Applicable

33

Not Applicable

34

Not Applicable

35

Not Applicable

36

Not Applicable

37

Not Applicable

38

Distribution of the Policies

39

Distribution of the Policies

40

Distribution of the Policies

41

Distribution of the Policies

42

Management

43

Not Applicable

44

Additional Information on the Investments of the Variable Account; Payment and Allocation of Premiums; Deductions and Charges

45

Not Applicable

46

Additional Information on the Investments of the Variable Account; Deductions and Charges

47

Additional Information on the Investments of the Variable Account

48

ReliaStar Life Insurance Company; State Regulation

49

Not Applicable

50

The Variable Account

51

Cover Page; The Policies; Death Benefit; Payment and Allocation of Premiums; Deductions and Charges; Policy Lapse and Reinstatement; General Provisions; Free Look and Conversion Rights

52

Additional Information on the Investments of the Variable Account

53

Federal Tax Matters

54

Not Applicable

55

Not Applicable

56

Not Applicable

57

Not Applicable

58

Not Applicable

59

Financial Statements

PART I
 

The Prospectus dated May 1, 2002, as amended, is incorporated into Part I of this Post-Effective Amendment No. 14 to Registration Statement on Form S-6 (File No. 33-57244) by reference to Registrant's filings under Rules 485(b) and 497(d), as filed on April 24, 2002 and June 13, 2002, respectively, (File No. 33-57244).

SELECTH LIFE II

Flexible Premium Variable Life Insurance Policies
Issued by
ReliaStar Life Insurance Company
and its
ReliaStar SelectH Life Variable Account

Supplement dated September 17, 2002 to the Prospectus dated May 1, 2002

This supplement adds certain information to your May 1, 2002, prospectus.

On April 30, 1999, the Putnam VT Asia Pacific Fund was closed to new investors and to new investments by existing investors. Effective October 14, 2002, Putnam VT Asia Pacific Growth Fund will merge into and become part of the Putnam VT International Growth Fund. In this merger, your investment in Putnam VT Asia Pacific Growth Fund will become an investment in Putnam VT International Growth Fund with an equal total net asset value. Putnam Investment Management, LLC believes that the merger will provide investors the opportunity to pursue the investment goal of capital appreciation through a substantially larger fund that invests in a more diversified portfolio of international securities and has a substantially lower expense ratio.

Please read this supplement carefully and keep it with your prospectus for future reference because the Putnam VT International Growth Fund will not be available for new investment through the SelectH Life II Policy and there will be no further disclosure regarding the Putnam VT International Growth Fund in future prospectuses of the Policy.

The following information about the Putnam VT International Growth Fund is added to the "Fund Expense Table" on page 10 of the prospectus:





Fund Name



Management (Advisory) Fees




Other Expenses


Total Fund Annual Expenses


Fees and Expenses Waived and Reimbursed


Total Net Annual Fund Expenses

Putnam Variable Trust

          

Putnam VT International Growth Fund (Class IA Shares)


0.76%


0.18%


0.94%


--


0.94%
 
 

The following information about the Putnam VT International Growth Fund is added to the "Investment Funds" section on page 13 of the prospectus:


Fund Name

Investment Adviser/
Subadviser


Investment Objective

Putnam Variable Trust -- Putnam VT International Growth Fund
(Class IA Shares)

Putnam Investment Management, LLC

Seeks capital appreciation. Invests mainly in large and midsize international stocks, targeting companies with established earnings growth that are priced below their fundamental worth.
   
   

 

 

The following information updates and replaces the "Management" section on page 61 of the prospectus:

The following is a list of current directors and principal officers of the Company, their position with the Company and their business experience during the past five years.

Name and Address

Position with the Company

Business Experience During the Past 5 Years

P. Randall Lowery*

Director

Has held several directorships and various executive officer positions with various ING affiliated companies since 1990, including positions as Director, Executive Vice President, General Manager and Chief Actuary.

Thomas J. McInerney*

Director

Has held several directorships and various executive officer positions with various ING affiliated companies since 1997, including positions as Director, Chief Executive Officer, and President.

Mark A. Tullis*

Director

Has held several directorships and various executive officer positions with various ING affiliated companies since 1999, including positions as Director, President, Treasurer, General Manager and Chief of Staff. Executive Vice President of Primerica from 1994 to 1999.

Keith Gubbay*

Director and President

Has held several directorships and various executive officer positions with various ING affiliated companies since 1999, including positions as Director, Executive Vice President, and General Manager. Executive Vice President of Whitehall Financial Group from 1996 to 1998.

Chris D. Schreier*

Director, Chief Financial Officer and Sr. Vice President

Has held several directorships and various executive officer positions with various ING affiliated companies since 1990, including positions as Director, President, Chief Financial Officer, Senior Vice President, and Treasurer.

David S. Pendergrass*

Vice President and Treasurer

Has held several executive officer positions with various ING affiliated companies, including positions as Vice President and Treasurer.

David Wheat*

Chief Accounting Officer

Chief Accounting Officer of various affiliated companies with various ING affiliated companies since 2001. Partner of Ernst & Young LLP from 1999 to 2001. Office Managing Partner of Ernst & Young LLP from 1995 to 1999.

*

The address of these Directors and Officers is 5780 Powers Ferry Road, NW, Atlanta, Georgia 30327-4390. These individuals may also be directors and/or officers of other affiliates of the Company

**

The address of this Officer is 20 Washington Avenue South, Minneapolis, Minnesota 55401. This individual may also be an officer of other affiliates of the company.

 

 

The "Financial Statements" section on page 63 of the prospectus is updated to include unaudited financial data for the Variable Account and for ReliaStar Life Insurance Company for the six-month period ended June 30, 2002:











































 

3

  

 

FINANCIAL STATEMENTS

For the Period Ended June 30, 2002 and the Year Ended December 31, 2001
 

RELIASTAR LIFE INSURANCE COMPANY

SELECTH LIFE VARIABLE ACCOUNT
 

INDEX
 
 
 
 

Page

Statements of Assets and Liabilities

S-2

Statements of Operations

S-9

Statements of Changes in Net Assets

S-14

Notes to Financial Statements

S-21


































S-1

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2002
(In Thousands, Except Shares and Unit Values)
(Unaudited)

ASSETS:

Investments in mutual funds at market value:
 





Shares





Cost


Alger American Growth Portfolio

Alger American Leveraged AllCap Portfolio

Alger American MidCap Growth Portfolio

Alger American Small Capitalization Portfolio


AIM V.I. Dent Demographic Trends Fund - Series I Shares

The Alger American Fund:

           

Alger American Growth Portfolio

1,326,989

$51,279

$39,810

$-

$-

$-

$-

Alger American Leveraged AllCap Portfolio

115,557

3,570

-

2,916

-

-

-

Alger American MidCap Growth Portfolio

1,092,010

18,951

-

-

16,205

-

-

Alger American Small Capitalization Portfolio

410,517

7,115

-

-

-

5,825

-

AIM Variable Insurance Funds:

              

AIM VI Dent Demographic Trends Fund

876,623

4,823

-

-

-

-

3,919

Fidelity's Variable Insurance Products Fund (VIP):

              

VIP Equity-Income Portfolio - IC Shares

4,567,366

100,408

-

-

-

-

-

VIP Growth Portfolio - IC Shares

4,323,715

161,512

-

-

-

-

-

VIP High Income Portfolio - IC Shares

2,417,230

19,198

         

VIP Money Market Portfolio - IC Shares

59,150,671

59,151

-

-

-

-

-

VIP Overseas Portfolio - IC Shares

857,448

16,593

-

-

-

-

-

Fidelity's Variable Insurance Products Fund II (VIP II):

              

VIP II Asset Manager Portfolio - IC Shares

1,489,792

24,161

-

-

-

-

-

VIP II Contrafund Portfolio - IC Shares

3,485,782

79,981

-

-

-

-

-

VIP II Index 500 Portfolio - IC Shares

665,526

92,191

-

-

-

-

-

VIP II Investment Grade Bond Portfolio - IC Shares

1,143,730

14,324

-

-

-

-

-

The GCG Trust:

              

GCG Trust Fully Managed Series - Class S Shares

200,233

3,627

-

-

-

-

-

GCG Trust Mid-Cap Growth Series - Class S Shares

39,562

456

-

-

-

-

-

ING Income Shares

              

ING VP Bond Portfolio - Class R Shares

1,024

14

-

-

-

-

-

ING Partners:

              

Van Kampen Comstock Portfolio - Initial Class

2,571

26

-

-

-

-

-

UBS Tactical Asset Allocation Portfolio - Initial Class

159

5

-

-

-

-

-

ING Variable Portfolios, Inc.:

              

ING VP Index Plus LargeCap Portfolio - Class R Shares

-

0

-

-

-

-

-

ING VP Index Plus MidCap Portfolio - Class R Shares

296

4

-

-

-

-

-

ING VP Index Plus SmallCap Portfolio - Class R Shares

1,499

18

-

-

-

-

-

ING Variable Products Trust:

              

INB VP Growth Opportunities Portfolio - Class R Shares

565,756

3,017

-

-

-

-

-

ING VP Growth + Value Portfolio - Class R Shares

1,246,586

22,523

-

-

-

-

-

ING VP High Yield Bond Portfolio - Class R Shares

482,618

1,554

-

-

-

-

-

ING VP International Value Portfolio - Class R Shares

1,039,648

10,947

-

-

-

-

-

ING VP MagnaCap Portfolio - Class R Shares

117,951

1,038

-

-

-

-

-

ING VP MidCap Opportunities Portfolio - Class R Shares

259,365

1,496

-

-

-

-

-

ING VP Research Enhanced Index Portfolio - Class R Shares

600,765

2,538

-

-

-

-

-

ING VP SmallCap Opportunities Portfolio - Class R Shares

1,589,453

36,348

-

-

-

-

-

Janus Aspen Series:

              

Aggressive Growth Portfolio - Institutional Shares

1,441,930

44,882

-

-

-

-

-

Growth Portfolio - Institutional Shares

1,537,140

39,261

-

-

-

-

-

International Growth Portfolio - Institutional Shares

980,362

21,170

-

-

-

-

-

Worldwide Growth Portfolio - Institutional Shares

1,966,465

62,181

-

-

-

-

-

Neuberger Berman Advisers Management Trust:

              

AMT Limited Maturity Bond Portfolio

755,593

9,895

-

-

-

-

-

AMT Partners Portfolio

673,671

10,920

-

-

-

-

-

AMT Socially Responsive Portfolio

70,478

732

-

-

-

-

-

OCC Accumulation Trust:

              

Equity Portfolio

155,950

5,155

-

-

-

-

-

Global Equity Portfolio

137,788

1,824

-

-

-

-

-

Managed Portfolio

243,707

9,782

-

-

-

-

-

Small Cap Portfolio

505,127

14,487

-

-

-

-

-

Pioneer Variable Contract Trust:

              

Mid-Cap Value VCT Portfolio - Class I

3,473

63

-

-

-

-

-

SmallCap Value VCT Portfolio - Class I

2,337

27

         

Putnam Variable Trust:

              

Putnam VT Asia Pacific Growth Fund - Class IA Shares

258,102

2,020

-

-

-

-

-

Putnam VT Diversified Income Fund - Class IA Shares

143,742

1,436

-

-

-

-

-

Putnam VT Growth and Income Fund - Class IA Shares

1,923,603

46,883

-

-

-

-

-

Putnam VT New Opportunities Fund - Class IA Shares

2,334,248

52,781

-

-

-

-

-

Putnam VT Small Cap Value Fund - Class IA Shares

194,044

3,096

-

-

-

-

-

Putnam VT Utilities Growth and Income Fund - Class IA Shares

143,637

2,345

-

-

-

-

-

Putnam VT Voyager Fund - Class IA Shares

3,596,878

138,027

-

-

-

-

-

Total assets

 		   

$39,810

$2,916

$16,205

$5,825

$3,919

LIABILITIES:

              

Payable to (from) ReliaStar Life Insurance Company

    

(4)

1

1

1

(1)
     

$39,806

$2,917

$16,206

$5,826

$3,918

NET ASSETS:

              

Accumulation units

    

$39,806

$2,917

$16,206

$5,826

$3,918

Total net assets

    

$39,806

$2,917

$16,206

$5,826

$3,918

Accumulation units outstanding:

              

SelectH Life I

    

$225,681

-

118,912

66,206

-

SelectH Life Series 2000

    

$3,108,157

574,642

1,005,787

729,764

913,407

Accumulation unit values:

              

SelectH Life I

    

$11.51

$-

$13,91

$7.06

$-

SelectH Life Series 2000

    

$11.97

$5.08

$14.47

$7.34

$4,29

The accompanying notes are an integral part of the financial statements.

S-2

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2002
(In Thousands, Except Shares and Unit Values)
(Unaudited)


Fidelity's VIP Equity-Income Portfolio--- IC Shares




Fidelity's VIP Growth Portfolio -- IC Shares




Fidelity's VIP High Income Portfolio -- IC Shares



Fidelity's VIP Money Market Portfolio -- IC Shares




Fidelity's VIP Overseas Portfolio -- IC Shares



Fidelity's VIP II Asset Manager Portfolio -- IC Shares




Fidelity's VIP II Contrafund Portfolio -- IC Shares


Fidelity's VIP II Index 500 Portfolio -- IC Shares


Fidelity's VIP II Investment Grade Bond Portfolio -- IC Shares


GCG Trust Fully Managed Series --Class S Shares


GCG Trust Mid-Cap Growth Series -- Class S Shares


ING Income Shares VP Bond Portfolio Class R Shares
                       

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                       

-

-

-

-

-

-

-

-

-

-

-

-
                       

93,722

-

-

-

-

-

-

-

-

-

-

-

-

117,086

-

-

-

-

-

-

-

-

-

-
   

13,246

                  

-

-

-

59,151

-

-

-

-

-

-

-

-

-

-

-

-

11,516

-

-

-

-

-

-

-
                       

-

-

-

-

-

19,069

-

-

-

-

-

-

-

-

-

-

-

-

69,053

-

-

-

-

-

-

-

-

-

-

-

-

74,166

-

-

-

-

-

-

-

-

-

-

-

-

14,651

-

-

-
                       

-

-

-

-

-

-

-

-

-

3,594

-

-

-

-

-

-

-

-

-

-

-

-

332

-
                       

-

-

-

-

-

-

-

-

-

-

-

14
                       

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                       

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                       

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                       

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                       

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                       

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                       

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                       

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$93,722

$117,086

$13,246

$59,151

$11,516

$19,069

$69,053

$74,166

$14,651

$3,594

$332

$14
                       

13

(5)

-

9

(11)

(1)

-

5

-

-

(1)

-

$93,735

$117,081

$13,246

$59,160

$11,505

$19,068

$69,053

$74,171

$14,651

$3,594

$331

$14
                       

$93,735

$117,081

$13,246

$59,160

$11,505

$19,068

$69,053

$74,171

$14,651

$3,594

$331

$14

$93,735

$117,081

$13,246

$59,160

$11,505

$19,068

$69,053

$74,171

$14,651

$3,594

$331

$14
                       

869,194

1,160,731

243,108

347,938

233,959

465,031

178,318

262,484

100,811

-

-

-

2,479,551

3,273,178

794,048

3,433,939

499,668

538,997

2,762,574

2,814,855

740,222

343,909

71,681

1,337
                       

$38.82

$39.55

$19.56

$19.89

$19.35

$22.14

$13.05

$24.06

$20.48

$-

$-

$-

$24.20

$21.74

$10.69

$15.21

$13.96

$16.27

$24.15

$24.11

$17.00

$10.45

$4.62

$10.19

The accompanying notes are an integral part of the financial statements.

S-3

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2002
(In Thousands, Except Shares and Unit Values)
(Unaudited)

ASSETS:

Investments in mutual funds at market value:
 






Shares






Cost

ING Partners Van Kampen Comstock Portfolio Initial Class

ING Partners UBS Tactical Asset Allocation Portfolio Initial Class

ING VP Index Plus LargeCap Portfolio Class R Shares

ING VP Index Plus MidCap Portfolio Class R Shares

ING VP Index Plus SmallCap Portfolio Class R Shares

The Alger American Fund:

           

Alger American Growth Portfolio

1,326,989

$51,279

$-

$-

$-

$-

$-

Alger American Leveraged AllCap Portfolio

115,557

3,570

-

-

-

-

-

Alger American MidCap Growth Portfolio

1,092,010

18,951

-

-

-

-

-

Alger American Small Capitalization Portfolio

410,517

7,115

-

-

-

-

-

AIM Variable Insurance Funds:

              

AIM VI Dent Demographic Trends Fund

876,623

4,823

-

-

-

-

-

Fidelity's Variable Insurance Products Fund (VIP):

              

VIP Equity-Income Portfolio - IC Shares

4,567,366

100,408

-

-

-

-

-

VIP Growth Portfolio - IC Shares

4,323,715

161,512

-

-

-

-

-

VIP High Income Portfolio - IC Shares

2,417,230

19,198

         

VIP Money Market Portfolio - IC Shares

59,150,671

59,151

-

-

-

-

-

VIP Overseas Portfolio - IC Shares

857,448

16,593

-

-

-

-

-

Fidelity's Variable Insurance Products Fund II (VIP II):

              

VIP II Asset Manager Portfolio - IC Shares

1,489,792

24,161

-

-

-

-

-

VIP II Contrafund Portfolio - IC Shares

3,485,782

79,981

-

-

-

-

-

VIP II Index 500 Portfolio - IC Shares

665,526

92,191

-

-

-

-

-

VIP II Investment Grade Bond Portfolio - IC Shares

1,143,730

14,324

-

-

-

-

-

The GCG Trust:

              

GCG Trust Fully Managed Series - Class S Shares

200,233

3,627

-

-

-

-

-

GCG Trust Mid-Cap Growth Series - Class S Shares

39,562

456

-

-

-

-

-

ING Income Shares

              

ING VP Bond Portfolio - Class R Shares

1,024

14

-

-

-

-

-

ING Partners:

              

Van Kampen Comstock Portfolio - Initial Class

2,571

26

24

-

-

-

-

UBS Tactical Asset Allocation Portfolio - Initial Class

159

5

-

4

-

-

-

ING Variable Portfolios, Inc.:

              

ING VP Index Plus LargeCap Portfolio - Class R Shares

-

0

-

-

-

-

-

ING VP Index Plus MidCap Portfolio - Class R Shares

296

4

-

-

-

4

-

ING VP Index Plus SmallCap Portfolio - Class R Shares

1,499

18

-

-

-

-

17

ING Variable Products Trust:

              

INB VP Growth Opportunities Portfolio - Class R Shares

565,756

3,017

-

-

-

-

-

ING VP Growth + Value Portfolio - Class R Shares

1,246,586

22,523

-

-

-

-

-

ING VP High Yield Bond Portfolio - Class R Shares

482,618

1,554

-

-

-

-

-

ING VP International Value Portfolio - Class R Shares

1,039,648

10,947

-

-

-

-

-

ING VP MagnaCap Portfolio - Class R Shares

117,951

1,038

-

-

-

-

-

ING VP MidCap Opportunities Portfolio - Class R Shares

259,365

1,496

-

-

-

-

-

ING VP Research Enhanced Index Portfolio - Class R Shares

600,765

2,538

-

-

-

-

-

ING VP SmallCap Opportunities Portfolio - Class R Shares

1,589,453

36,348

-

-

-

-

-

Janus Aspen Series:

              

Aggressive Growth Portfolio - Institutional Shares

1,441,930

44,882

-

-

-

-

-

Growth Portfolio - Institutional Shares

1,537,140

39,261

-

-

-

-

-

International Growth Portfolio - Institutional Shares

980,362

21,170

-

-

-

-

-

Worldwide Growth Portfolio - Institutional Shares

1,966,465

62,181

-

-

-

-

-

Neuberger Berman Advisers Management Trust:

              

AMT Limited Maturity Bond Portfolio

755,593

9,895

-

-

-

-

-

AMT Partners Portfolio

673,671

10,920

         

AMT Socially Responsive Portfolio

70,478

732

-

-

-

-

-

OCC Accumulation Trust:

              

Equity Portfolio

155,950

5,155

-

-

-

-

-

Global Equity Portfolio

137,788

1,824

-

-

-

-

-

Managed Portfolio

243,707

9,782

-

-

-

-

-

Small Cap Portfolio

505,127

14,487

-

-

-

-

-

Pioneer Variable Contract Trust:

              

Mid-Cap Value VCT Portfolio - Class I

3,473

63

-

-

-

-

-

SmallCap Value VCT Portfolio - Class I

2,337

27

-

-

-

-

-

Putnam Variable Trust:

              

Putnam VT Asia Pacific Growth Fund - Class IA Shares

258,102

2,020

-

-

-

-

-

Putnam VT Diversified Income Fund - Class IA Shares

143,742

1,436

-

-

-

-

-

Putnam VT Growth and Income Fund - Class IA Shares

1,923,603

46,883

-

-

-

-

-

Putnam VT New Opportunities Fund - Class IA Shares

2,334,248

52,781

-

-

-

-

-

Putnam VT Small Cap Value Fund - Class IA Shares

194,044

3,096

-

-

-

-

-

Putnam VT Utilities Growth and Income Fund - Class IA Shares

143,637

2,345

-

-

-

-

-

Putnam VT Voyager Fund - Class IA Shares

3,596,878

138,027

-

-

-

-

-

Total assets

 		   

$24

$4

$-

$4

$17

LIABILITIES:

              

Payable to (from) ReliaStar Life Insurance Company

    

-

-

-

-

-
     

$24

$4

$-

$4

$17,

NET ASSETS:

              

Accumulation units

    

$24

$4

$-

$4

$17

Total net assets

    

$24

$4

$-

$4

$17

Accumulation units outstanding:

              

SelectH Life I

    

-

-

-

-

-

SelectH Life Series 2000

    

2,571

468

-

432

1,912

Accumulation unit values:

              

SelectH Life I

    

$-

$-

$-

$-

$-

SelectH Life Series 2000

    

$9.20

$9.13

$9.20

$9.18

$9.14

The accompanying notes are an integral part of the financial statements.

S-4

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2002
(In Thousands, Except Shares and Unit Values)
(Unaudited)



ING VP Growth Opportunities Portfolio



ING VP Growth + Value Portfolio



ING VP High Yield Bond Portfolio



ING VP International Value Portfolio




ING VP MagnaCap Portfolio



ING VP MidCap Opportunities Portfolio


ING VP Research Enhanced Index Portfolio



ING VP SmallCap Opportunities Portfolio

Janus Aspen Series Aggressive Growth Portfolio


Janus Aspen Series Growth Portfolio


Janus Aspen Series International Growth Portfolio
                     

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

2,574

-

-

-

-

-

-

-

-

-

-

-

16,006

-

-

-

-

-

-

-

-

-

-

-

1,419

-

-

-

-

-

-

-

-

-

-

-

10,459

-

-

-

-

-

-

-

-

-

-

-

957

-

-

-

-

-

-

-

-

-

-

-

1,362

-

-

-

-

-

-

-

-

-

-

-

2,007

-

-

-

-

-

-

-

-

-

-

-

22,125

-

-

-
                     

-

-

-

-

-

-

-

-

25,594

-

-

-

-

-

-

-

-

-

-

-

25,793

-

-

-

-

-

-

-

-

-

-

-

20,146

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-
               

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$2,574

$16,006

$1,419

$10,459

$957

$1,362

$2,007

$22,125

$25,594

$25,793

$20,146
                     

-

2

30

2

(1)

-

(1)

(9)

(1)

(4)

(1)

$2,574

$16,008

$1,449

$10,461

$956

$1,362

$2.,006

$22,116

$25,593

$25,789

$20,145
                     

$2,574

$16,008

$1,449

$10,461

$956

$1,362

$2,006

$22,116

$25,593

$25,789

$20,145

$2,574

$16,008

$1,449

$10,461

$956

$1,362

$2,006

$22,116

$25,593

$25,789

$20,145
                     

-

95,278

7,145

48,332

-

-

5,005

85,183

231,981

139,579

88,979

564,625

1,238,782

157,752

609,807

115,508

258,994

190,286

870,640

2,091,400

2,253,344

1,639.839
                     

$-

$11.57

$8.46

$15.33

$-

$-

$7.17

$14.95

$10.63

$10.39

$11.23

$4.56

$12.03

$8.80

$15.94

$8.28

$5.26

$10.36

$23.94

$11.06

$10.80

$11.68

The accompanying notes are an integral part of the financial statements.

S-5

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2002
(In Thousands, Except Shares and Unit Values)
(Unaudited)

ASSETS:

Investments in mutual funds at market value:
 






Shares






Cost


Janus Aspen Series Worldwide Growth Portfolio


Neuberger Berman AMT Limited Maturity Bond Portfolio


Neuberger Berman AMT Partners Portfolio

Neuberger Berman AMT Socially Responsive Portfolio



OCC Accumulation Trust Equity Portfolio

The Alger American Fund:

           

Alger American Growth Portfolio

1,326,989

$51,279

$-

$-

$-

$-

$-

Alger American Leveraged AllCap Portfolio

115,557

3,570

-

-

-

-

-

Alger American MidCap Growth Portfolio

1,092,010

18,951

-

-

-

-

-

Alger American Small Capitalization Portfolio

410,517

7,115

-

-

-

-

-

AIM Variable Insurance Funds:

              

AIM VI Dent Demographic Trends Fund

876,623

4,823

-

-

-

-

-

Fidelity's Variable Insurance Products Fund (VIP):

              

VIP Equity-Income Portfolio - IC Shares

4,567,366

100,408

-

-

-

-

-

VIP Growth Portfolio - IC Shares

4,323,715

161,512

-

-

-

-

-

VIP High Income Portfolio - IC Shares

2,417,230

19,198

         

VIP Money Market Portfolio - IC Shares

59,150,671

59,151

-

-

-

-

-

VIP Overseas Portfolio - IC Shares

857,448

16,593

-

-

-

-

-

Fidelity's Variable Insurance Products Fund II (VIP II):

              

VIP II Asset Manager Portfolio - IC Shares

1,489,792

24,161

-

-

-

-

-

VIP II Contrafund Portfolio - IC Shares

3,485,782

79,981

-

-

-

-

-

VIP II Index 500 Portfolio - IC Shares

665,526

92,191

-

-

-

-

-

VIP II Investment Grade Bond Portfolio - IC Shares

1,143,730

14,324

-

-

-

-

-

The GCG Trust:

              

GCG Trust Fully Managed Series - Class S Shares

200,233

3,627

-

-

-

-

-

GCG Trust Mid-Cap Growth Series - Class S Shares

39,562

456

-

-

-

-

-

ING Income Shares

              

ING VP Bond Portfolio - Class R Shares

1,024

14

-

-

-

-

-

ING Partners:

              

Van Kampen Comstock Portfolio - Initial Class

2,571

26

-

-

-

-

-

UBS Tactical Asset Allocation Portfolio - Initial Class

159

5

-

-

-

-

-

ING Variable Portfolios, Inc.:

              

ING VP Index Plus LargeCap Portfolio - Class R Shares

-

0

-

-

-

-

-

ING VP Index Plus MidCap Portfolio - Class R Shares

296

4

-

-

-

-

-

ING VP Index Plus SmallCap Portfolio - Class R Shares

1,499

18

-

-

-

-

-

ING Variable Products Trust:

              

INB VP Growth Opportunities Portfolio - Class R Shares

565,756

3,017

-

-

-

-

-

ING VP Growth + Value Portfolio - Class R Shares

1,246,586

22,523

-

-

-

-

-

ING VP High Yield Bond Portfolio - Class R Shares

482,618

1,554

-

-

-

-

-

ING VP International Value Portfolio - Class R Shares

1,039,648

10,947

-

-

-

-

-

ING VP MagnaCap Portfolio - Class R Shares

117,951

1,038

-

-

-

-

-

ING VP MidCap Opportunities Portfolio - Class R Shares

259,365

1,496

-

-

-

-

-

ING VP Research Enhanced Index Portfolio - Class R Shares

600,765

2,538

-

-

-

-

-

ING VP SmallCap Opportunities Portfolio - Class R Shares

1,589,453

36,348

-

-

-

-

-

Janus Aspen Series:

              

Aggressive Growth Portfolio - Institutional Shares

1,441,930

44,882

-

-

-

-

-

Growth Portfolio - Institutional Shares

1,537,140

39,261

-

-

-

-

-

International Growth Portfolio - Institutional Shares

980,362

21,170

-

-

-

-

-

Worldwide Growth Portfolio - Institutional Shares

1,966,465

62,181

48,611

-

-

-

-

Neuberger Berman Advisers Management Trust:

              

AMT Limited Maturity Bond Portfolio

755,593

9,895

-

9,883

-

-

-

AMT Partners Portfolio

673,671

10,920

-

-

9,128

    

AMT Socially Responsive Portfolio

70,478

732

-

-

-

706

-

OCC Accumulation Trust:

              

Equity Portfolio

155,950

5,155

-

-

-

-

4,565

Global Equity Portfolio

137,788

1,824

-

-

-

-

-

Managed Portfolio

243,707

9,782

-

-

-

-

-

Small Cap Portfolio

505,127

14,487

-

-

-

-

-

Pioneer Variable Contract Trust:

              

Mid-Cap Value VCT Portfolio - Class I

3,473

63

-

-

-

-

-

SmallCap Value VCT Portfolio - Class I

2,337

27

-

-

-

-

-

Putnam Variable Trust:

              

Putnam VT Asia Pacific Growth Fund - Class IA Shares

258,102

2,020

-

-

-

-

-

Putnam VT Diversified Income Fund - Class IA Shares

143,742

1,436

-

-

-

-

-

Putnam VT Growth and Income Fund - Class IA Shares

1,923,603

46,883

-

-

-

-

-

Putnam VT New Opportunities Fund - Class IA Shares

2,334,248

52,781

-

-

-

-

-

Putnam VT Small Cap Value Fund - Class IA Shares

194,044

3,096

-

-

-

-

-

Putnam VT Utilities Growth and Income Fund - Class IA Shares

143,637

2,345

-

-

-

-

-

Putnam VT Voyager Fund - Class IA Shares

3,596,878

138,027

-

-

-

-

-

Total assets

 		   

$48,611

$9,883

$9,128

$706

$4,565

LIABILITIES:

              

Payable to (from) ReliaStar Life Insurance Company

    

(3)

(1)

-

-

-
     

$48,608

$9,882

$9,128

$706

$4,565

NET ASSETS:

              

Accumulation units

    

$48,608

$9,882

$9,128

$706

$4,565

Total net assets

    

$48,608

$9,882

$9,128

$706

$4,565

Accumulation units outstanding:

              

SelectH Life I

    

343,427

28,663

53,024

-

22,168

SelectH Life Series 2000

    

3,767,133

739,786

844,521

74,458

382,145

Accumulation unit values:

              

SelectH Life I

    

$11.41

$12.38

$9.80

$-

$10.88

SelectH Life Series 2000

    

$11.86

$12.88

$10.19

$9.48

$11.31

The accompanying notes are an integral part of the financial statements.

S-6

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2002
(In Thousands, Except Shares and Unit Values)
(Unaudited)





OCC Accumulation Trust Global Equity Portfolio





OCC Accumulation Trust Managed Portfolio






OCC Accumulation Trust Small Cap Portfolio

Pioneer Variable Contract Trust Mid-Cap Value VCT Portfolio Class 1

Pioneer Variable Contract Trust Small Cap Value VCT Portfolio





Putnam VT Asia Pacific Growth Fund Class IA Shares




Putnam VT Diversified Income Fund Class IA Shares





Putnam VT Growth and Income Fund Class IA Shares





Putnam VT New Opportunities Fund Class IA Shares



Putnam VT Small Cap Value Fund Class IA Shares

Putnam VT Utilities Growth and Income Fund Class IA Shares
                     

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-
                     

-

-

-

-

-

-

-

-

-

-

-

1,669

-

-

-

-

-

-

-

-

-

-

-

8,849

-

-

-

-

-

-

-

-

-

-

-

13,760

-

-

-

-

-

-

-

-
                     

-

-

-

57

-

-

-

-

-

-

-

-

-

-

-

27

-

-

-

-

-

-
                     

-

-

-

-

-

1,396

-

-

-

-

-

-

-

-

-

-

-

1,174

-

-

-

-

-

-

-

-

-

-

-

40,415

-

-

-

-

-

-

-

-

-

-

-

30,695

-

-

-

-

-

-

-

-

-

-

-

2,984

-

-

-

-

-

-

-

-

-

-

-

1,525

-

-

-

    

-

-

-

-

-

-

$1,669

$8,849

$13,760

$57

$27

$1,396

$1,174

$40,415

$30,695

$2,984

$1,525
                     

-

-

(1)

-

-

-

-

(1)

(12)

-

-

$1,669

$8,849

$13,759

$57

$27

$1,396

$1,174

$40,414

$30,683

$2,984

$1,525
                     

$1,669

$8,849

$13,759

$57

$27

$1,396

$1,174

$40,414

$30,683

$2,984

$1,525

$1,669

$8,849

$13,759

$57

$27

$1,396

$1,174

$40,414

$30,683

$2,984

$1,525
                     

16,643

58,651

76,641

-

-

-

2,679

109,553

-

-

5,766

129,802

748,078

896,179

6,194

2,832

168,155

80,879

1,697,473

1,949,867

263,107

89,431
                     

$11.00

$10.58

$13.64

$-

$-

$-

$13.70

$21.43

$-

$-

$15.67

$11.44

$11.00

$14.19

$9.27

$9.38

$8.30

$14.07

$22.43

$15.74

$11.34

$16.05

The accompanying notes are an integral part of the financial statements.

S-7

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2002
(In Thousands, Except Shares and Unit Values)
(Unaudited)

ASSETS:

Investments in mutual funds at market value:
 




Shares




Cost

Putnam VT Voyager Fund Class IA Shares

        

The Alger American Fund:

           

Alger American Growth Portfolio

1,326,989

$51,279

$ -

        

Alger American Leveraged AllCap Portfolio

115,557

3,570

-

        

Alger American MidCap Growth Portfolio

1,092,010

18,951

-

        

Alger American Small Capitalization Portfolio

410,517

7,115

-

        

AIM Variable Insurance Funds:

              

AIM VI Dent Demographic Trends Fund

876,623

4,823

-

        

Fidelity's Variable Insurance Products Fund (VIP):

              

VIP Equity-Income Portfolio - IC Shares

4,567,366

100,408

-

        

VIP Growth Portfolio - IC Shares

4,323,715

161,512

-

        

VIP High Income Portfolio - IC Shares

2,417,230

19,198

         

VIP Money Market Portfolio - IC Shares

59,150,671

59,151

-

        

VIP Overseas Portfolio - IC Shares

857,448

16,593

-

        

Fidelity's Variable Insurance Products Fund II (VIP II):

              

VIP II Asset Manager Portfolio - IC Shares

1,489,792

24,161

-

        

VIP II Contrafund Portfolio - IC Shares

3,485,782

79,981

-

        

VIP II Index 500 Portfolio - IC Shares

665,526

92,191

-

        

VIP II Investment Grade Bond Portfolio - IC Shares

1,143,730

14,324

-

        

The GCG Trust:

              

GCG Trust Fully Managed Series - Class S Shares

200,233

3,627

-

        

GCG Trust Mid-Cap Growth Series - Class S Shares

39,562

456

-

        

ING Income Shares

              

ING VP Bond Portfolio - Class R Shares

1,024

14

-

        

ING Partners:

              

Van Kampen Comstock Portfolio - Initial Class

2,571

26

-

        

UBS Tactical Asset Allocation Portfolio - Initial Class

159

5

-

        

ING Variable Portfolios, Inc.:

              

ING VP Index Plus LargeCap Portfolio - Class R Shares

-

0

-

        

ING VP Index Plus MidCap Portfolio - Class R Shares

296

4

-

        

ING VP Index Plus SmallCap Portfolio - Class R Shares

1,499

18

-

        

ING Variable Products Trust:

              

INB VP Growth Opportunities Portfolio - Class R Shares

565,756

3,017

-

        

ING VP Growth + Value Portfolio - Class R Shares

1,246,586

22,523

-

        

ING VP High Yield Bond Portfolio - Class R Shares

482,618

1,554

-

        

ING VP International Value Portfolio - Class R Shares

1,039,648

10,947

-

        

ING VP MagnaCap Portfolio - Class R Shares

117,951

1,038

-

        

ING VP MidCap Opportunities Portfolio - Class R Shares

259,365

1,496

-

        

ING VP Research Enhanced Index Portfolio - Class R Shares

600,765

2,538

-

        

ING VP SmallCap Opportunities Portfolio - Class R Shares

1,589,453

36,348

-

        

Janus Aspen Series:

              

Aggressive Growth Portfolio - Institutional Shares

1,441,930

44,882

-

        

Growth Portfolio - Institutional Shares

1,537,140

39,261

-

        

International Growth Portfolio - Institutional Shares

980,362

21,170

-

        

Worldwide Growth Portfolio - Institutional Shares

1,966,465

62,181

-

        

Neuberger Berman Advisers Management Trust:

              

AMT Limited Maturity Bond Portfolio

755,593

9,895

-

        

AMT Partners Portfolio

673,671

10,920

         

AMT Socially Responsive Portfolio

70,478

732

-

OCC Accumulation Trust:

              

Equity Portfolio

155,950

5,155

-

        

Global Equity Portfolio

137,788

1,824

-

        

Managed Portfolio

243,707

9,782

-

        

Small Cap Portfolio

505,127

14,487

-

        

Pioneer Variable Contract Trust:

              

Mid-Cap Value VCT Portfolio - Class I

3,473

63

-

        

SmallCap Value VCT Portfolio - Class I

2,337

27

-

        

Putnam Variable Trust:

              

Putnam VT Asia Pacific Growth Fund - Class IA Shares

258,102

2,020

-

        

Putnam VT Diversified Income Fund - Class IA Shares

143,742

1,436

-

        

Putnam VT Growth and Income Fund - Class IA Shares

1,923,603

46,883

-

        

Putnam VT New Opportunities Fund - Class IA Shares

2,334,248

52,781

-

        

Putnam VT Small Cap Value Fund - Class IA Shares

194,044

3,096

-

        

Putnam VT Utilities Growth and Income Fund - Class IA Shares

143,637

2,345

-

        

Putnam VT Voyager Fund - Class IA Shares

3,596,878

138,027

85,534

        

Total assets

 		   

$8,534

        

LIABILITIES:

              

Payable to (from) ReliaStar Life Insurance Company

    

3

        
     

$85,537

        

NET ASSETS:

              

Accumulation units

    

$85,537

        

Total net assets

    

$85,537

        

Accumulation units outstanding:

              

SelectH Life I

    

262,521

        

SelectH Life Series 2000

    

3,663,535

        

Accumulation unit values:

              

SelectH Life I

    

$21.21

        

SelectH Life Series 2000

    

$21.83

        

The accompanying notes are an integral part of the financial statements.

S-8

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
For the period ended June 30, 2002 and the years ended December 31, 2001 and 2000
(In Thousands)
(Unaudited)
 

 

Alger American Growth Portfolio

Alger American Leveraged AllCap Portfolio

Alger American MidCap Growth Portfolio

Alger American Small Capitalization Portfolio

AIM V.I. Dent Demographic Trends Fund
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Income:

                              

Dividends

$16

$99

$-

$-

$-

$-

$-

$-

$-

$-

$3

$-

$-

$-

$-

Expenses:

                              

Mortality and expense risk

(163)

(328)

(353)

(10)

(6)

(5)

(58)

(98)

(68)

(23)

(45)

(60)

(14)

(27)

(10)

Net investment income (loss)

(147)

(229)

(353)

(10)

(16)

(5)

(58)

(98)

(68)

(23)

(42)

(60)

(14)

(27)

(10)


Realized gains (losses) on

                              

Investments:

 		                             

Realized gain (loss) on sales of fund shares


(6,593)


(10,440)


1,644


(631)


(162)


(3)


(860)


(6,369)


859


43


(3,774)


(2,148)


(1,547)


(679)


-

Realized gain distributions

-

5,364

5,677

-

72

8

-

5,382

925

-

-

2,614

-

-

-


Realized gain (loss)


(6,593)


(5,076)


7,321


(631)


(90)

5


(860)


(987)


$1,784


43


(3,774)


466


(1,547)


(679)


-

Change in unrealized appreciation (depreciation) during the period


(2,160)


(228)


(14,672)


(36)


(219)


(399)


(2,053)


87


(1,604)


(1,088)


1,654


(3,137)


600


(738)


(766)

Net increase (decrease) in net assets from operations


$(8,900)


$(5,533)


$(7,704)


$(677)


$(325)


$(399)


$(2,971)


$(998)


$112


$(1,068)


$(2,162)


$(2,731)


$(961)


$(1,444)


$(776)

S-9
 

Fidelity's VIP Equity-Income Portfolio -- IC Shares

Fidelity's VIP Growth
Portfolio -- IC Shares

Fidelity's VIP High Income Portfolio -- IC Shares

Fidelity's VIP Money Market Portfolio -- IC Shares

Fidelity's VIP Overseas Portfolio -- IC Shares
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Income:

                              

Dividends

$1,573

$1,681

$1,656

$305

$124

$226

$1,422

$1,916

$1,313

$492

$1,874

$2,154

$92

$916

$393

Expenses:

                              

Mortality and expense risk

(407)

(830)

(801)

(562)

(1,296)

(1,732)

(55)

(120)

(149)

(200)

(359)

(290)

(52)

(137)

(214)

Net investment income (loss)

1,166

851

855

(257)

(1,172)

(1,506)

1,367

1,796

1,164

292

1,515

1,864

40

779

179


Realized gains (losses) on

                              

Investments:

 		                             

Realized gain (loss) on sales of fund shares


(642)


298


6,631


1,081


3,712


6,878


(2,415)


(3,072)


(494)


-


-


-


(553)


(699)


1,060

Realized gain distributions

2,142

4,723

6,237

-

11,703

22,462

-

-

-

-

-

-

-

1,447

2,475

-


Realized gain (loss)


1,500


5,021


12,868


1,081


15,415


29,340


(2,415)


(3,072)


(494)


-


-


-


(553)


748


3,535

Change in unrealized appreciation (depreciation) during the period


(9,321)


(11,744)


(6,727)


(29,452)


(47,409)


(51,728)


433


(544)


(5,091)


-


(1)


1


154


(5,631)


(9,029)

Net increase (decrease) in net assets from operations


$(6,655)


$(5,872)


$6,996


$(28,628)


$(33,166)


$(23,894)


$(615)


$(1,820)


$(4,421)


$292


$1,514


$1,865


$(359)


$(4,104)


$(5,315)

The accompanying notes are an integral part of the financial statements.

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
For the period ended June 30, 2002 and the years ended December 31, 2001 and 2000
(In Thousands)
(Unaudited)
 

Fidelity's VIP II Asset Manager Portfolio -- IC Shares

Fidelity's VIP II Contrafund Portfolio -- IC Shares

Fidelity's VIP II Index 500 Portfolio -- IC Shares

Fidelity's VIP II Investment Grade Bond Portfolio -- IC Shares


GCG Trust Fully Managed Series
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Income:

                              

Dividends

$819

$1,092

$1,071

$544

$529

$260

$945

$891

845

$499

$431

$440

$-

$28

$-

Expenses:

                              

Mortality and expense risk

(88)

(208)

(260)

(288)

(564)

(642)

(309)

(631)

(708)

(48)

(76)

(55)

(8)

(3)

-

Net investment income (loss)

731

884

811

256

(35)

(382)

636

260

137

451

355

385

(8)

25

-


Realized gains (losses) on

                              

Investments:

 		                             

Realized gain (loss) on sales of fund shares


(267)


(135)


694


(362)


(197)


6,917


1,204


885


3,117


152


2


(28)


(11)


(2)


-

Realized gain distributions

-

410

2,524

-

1,866

9,444

-

-

369

-

-

-

-

29

  


Realized gain (loss)


(267)


275


3,218


(362)


1,669


16,361


1,204


885


3,486


152


2


(28)


(11)


27


-

Change in unrealized appreciation (depreciation) during the period


(2,326)


(2,541)


(5,473)


(732)


(11,269)


(21,649)


(13,352)


(12,099)


(12,639)


(237)


326


318


(1)


(32)


-

Net increase (decrease) in net assets from operations


$(1,862)


$(1,382)


$(1,444)


$(838)


$(9,635)


$(5,670)


$(11,512)


$(10,954)


$(9,016)


$366


$683


$675


$(20)


20


$-

S-10
 

GCG Trust Mid-Cap Growth Series

ING Income Shares VP Bond Portfolio Class R Shares

ING Partners Van Kampen Comstock Portfolio Initial Class

ING Partners UBS Tactical Asset Allocation Portfolio Initial Class

ING VP Index Plus LargeCap Portfolio Class R Shares
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Income:

                              

Dividends

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

Expenses:

                              

Mortality and expense risk

(1)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Net investment income (loss)

(1)

-

-

-

-

-

-

-

-

-

-

-

-

-

-


Realized gains (losses) on

                              

Investments:

 		                             

Realized gain (loss) on sales of fund shares


(20)


(4)


-


-


-


-


-


-


-


-


-


-


-


-


-

Realized gain distributions

-

1

                          


Realized gain (loss)


(2)


(3)


-


-


-


-


-


-


-


-


-


-


-


-


-

Change in unrealized appreciation (depreciation) during the period


(133)


9


-


-


-


-


(2)


-


-


(1)


-


-


-


-


-

Net increase (decrease) in net assets from operations


$(154)


$6


$-


$-


$-


$-


$(2)


$-


$-


$(1)


$-


$-


$-


$-


$-

The accompanying notes are an integral part of the financial statements.

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
For the period ended June 30, 2002 and the years ended December 31, 2001 and 2000
(In Thousands)
(Unaudited)
 

ING VP Index Plus MidCap Portfolio Class R Shares

ING VP Index Plus Small Cap Portfolio Class R Shares

ING VP Growth Opportunities Portfolio Class R Shares

ING VP Growth + Value Portfolio Class R Shares

ING VP High Yield Bond Portfolio Class R Shares
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Income:

                              

Dividends

$-

$-

$-

$-

$-

$-

$-

$-

$3

$-

$-

$-

$61

$108

$84

Expenses:

                              

Mortality and expense risk

-

-

-

-

-

-

(9)

(14)

(4)

(62)

(125)

(115)

(5)

(9)

(7)

Net investment income (loss)

-

-

-

-

-

-

(9)

(14)

(1)

(62)

(125)

(115)

56

99

77


Realized gains (losses) on

                              

Investments:

 		                             

Realized gain (loss) on sales of fund shares


-


-


-


-


-


-


(917)


(276)


(1)


(7,396)


(1,336)


(218)


(120)


(188)


(34)

Realized gain distributions

 		           

-

-

-

-

50

2,816

-

-

-


Realized gain (loss)


-


-


-


-


-


-


(917)


(276)


(1)


(7,396)


(1,286)


2,598


(120)


(188)


(34)

Change in unrealized appreciation (depreciation) during the period


-


-


-


(1)


-


-


425


(596)


(272)


3,887


(4,812)


(6,511)


21


74


(158)

Net increase (decrease) in net assets from operations


$-


$-


$-


$(1)


$-


$-


$(501)


$(886)


$(274)


$(3,571)


$(6,223)


$(4,028)


$(43)


$(15)


$(115)

S-11
 

ING VP International Value Portfolio Class R Shares

ING VP MagnaCap Portfolio
Class R Shares

ING VP MidCap Opportunities Portfolio Class R Shares

ING VP Research Enhanced Index Portfolio Class R Shares

ING VP SmallCap Opportunities Portfolio Class R Shares
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Income:

                              

Dividends

$26

$109

$97

$1

$4

$-

$-

$-

$-

$2

$12

$9

$-

$-

$-

Expenses:

                              

Mortality and expense risk

(33)

(51)

(39)

(2)

(1)

-

(4)

(4)

(1)

(9)

(17)

(17)

(92)

(191)

(188)

Net investment income (loss)

(7)

58

58

(1)

3

-

(4)

(4)

(1)

(7)

(5)

(8)

(92)

(191)

(188)


Realized gains (losses) on

                              

Investments:

 		                             

Realized gain (loss) on sales of fund shares


(1,058)


(188)


122


(26)


(7)


-


(204)


(107)


(6)


(179)


(76)


(64)


(2,654)


(445)


425

Realized gain distributions

-

231

1,020

-

-

-

-

-

-

-

-

-

-

63

2,681


Realized gain (loss)


(1,058)


43


1,142


(26)


(7)


-


(204)


(107)


(6)


(179)


(76)


(64)


(2,654)


(382)


3,106

Change in unrealized appreciation (depreciation) during the period


876


(858)


(883)


(66)


(14)


(1)


2


(109)


(27)


(117)


(204)


(260)


(4,829)


(8,302)


(4,345)

Net increase (decrease) in net assets from operations


$(189)


$(757)


$317


$(93)


$(18)


$(1)


$(206)


$(220)


$(34)


$(303)


$(285)


$(332)


$(7,575)


$(8,875)


$(1,427)

The accompanying notes are an integral part of the financial statements.

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
For the period ended June 30, 2002 and the years ended December 31, 2001 and 2000
(In Thousands)
(Unaudited)
 

Janus Aspen Series Aggressive Growth Portfolio

Janus Aspen Series Growth Portfolio

Janus Aspen Series International Growth Portfolio

Janus Aspen Series Worldwide Growth Portfolio

Neuberger Berman AMT Limited Maturity Bond Portfolio
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Income:

                              

Dividends

$-

$-

$2,456

$-

$21

$817

$85

$207

$318

$196

$274

$1,226

$406

$277

$208

Expenses:

                              

Mortality and expense risk

(98)

(231)

(343)

(106)

(229)

(259)

(72)

(137)

(149)

(202)

(431)

(520)

(30)

(41)

(28)

Net investment income (loss)

(98)

(231)

2,113

(106)

(208)

558

13

70

169

(6)

(157)

706

376

236

180


Realized gains (losses) on

                              

Investments:

 		                             

Realized gain (loss) on sales of fund shares


(18,953)


(1,458)


2,604


(5,177)


(525)


48


(856)


(9,178)


4,698


(11,389)


(6,930)


11,165


34


(15)


(59)

Realized gain distributions

-

-

2,547

-

61

1,925

-

-

612

-

-

3,979

-

-

-


Realized gain (loss)


(18,953)


(1,458)


5,151


(5,177)


(464)


1,973


(856)


(9,178)


5,310


(11,389)


(6,930)


15,144


34


(15)


(59)

Change in unrealized appreciation (depreciation) during the period


12,946


(15,612)


(26,058)


410


(8,582)


(8,901)


(956)


4,758


(8,683)


3,980


(7,615)


(27,191)


(255)


187


97

Net increase (decrease) in net assets from operations


$(6,105)


$(17,301)


$(18,794)


$(4,873)


$(9,254)


$(6,370)


$(1,799)


$(4,350)


$(3,204)


$(7,415)


$(14,702)


$(11,341)


$155


$408


$218

S-12
 

Neuberger Berman AMT Partners Portfolio

Neuberger Berman AMT Socially Responsive Portfolio

OCC Accumulation Trust Equity Portfolio

OCC Accumulation Trust Global Equity Portfolio

OCC Accumulation Trust Managed Portfolio
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Income:

                              

Dividends

$45

$34

$68

$-

$-

$-

$36

$18

$15

$7

$-

$12

$145

$139

$71

Expenses:

                              

Mortality and expense risk

(40)

(76)

(75)

(2)

(2)

(1)

(16)

(27)

(16)

(6)

(13)

(11)

(33)

(55)

(44)

Net investment income (loss)

5

(42)

(7)

(2)

(2)

(1)

20

(9)

(1)

1

(13)

1

112

84

27


Realized gains (losses) on

                              

Investments:

 		                             

Realized gain (loss) on sales of fund shares


(311)


(290)


(335)


(23)


(5)


-


(151)


(64)


(46)


(138)


(159)


-


(172)


56


(189)

Realized gain distributions

-

327

1,442

-

-

-

36

17

193

-

17

141

-

-

394


Realized gain (loss)


(311)


37


1,107


(23)


(5)


-


(115)


(47)


147


(138)


(142)


141


(172)


56


205

Change in unrealized appreciation (depreciation) during the period


(754)


(330)


(1,093)


(28)


(3)


2


(426)


(255)


91


22


(72)


(55)


(724)


(546)


230

Net increase (decrease) in net assets from operations


$(1,060)


$(335)


$7


$(53)


$(10)


$1


$(521)


$(311)


$237


$(115)


$(227)


$87


$(784)


$(406)


$462

The accompanying notes are an integral part of the financial statements.

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
For the period ended June 30, 2002 and the years ended December 31, 2001 and 2000
(In Thousands)
(Unaudited)
 


OCC Accumulation Trust Small Cap Portfolio

Pioneer Variable Contract Trust Mid-Cap Value VCT Portfolio Class I

Pioneer Variable Contract Trust Small Cap Value VCT Portfolio Class I


Putnam VT Asia Pacific Growth Fund Class IA Shares


Putnam VT Diversified Income Fund Class IA Shares
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Income:

                              

Dividends

$8

$51

$22

$-

$-

$-

$-

$-

$-

$13

$-

$144

$107

$101

$128

Expenses:

                              

Mortality and expense risk

(47)

(64)

(36)

-

-

-

-

-

-

(7)

(15)

(30)

(5)

(12)

(14)

Net investment income (loss)

(39)

(13)

(14)

-

-

-

-

-

-

6

(15)

114

102

89

114


Realized gains (losses) on

                              

Investments:

 		                             

Realized gain (loss) on sales of fund shares


601


176


165


-


-


-


-


-


-


(106)


(245)


77


(32)


(61)


(46)

Realized gain distributions

1,651

459

-

2

-

-

-

-

-

-

495

-

-

-

-


Realized gain (loss)


2,252


635


165


2


-


-


-


-


-


(106)


250


77


(32)


(61)


(46)

Change in unrealized appreciation (depreciation) during the period


(2,493)


256


1,599


(6)


-


-


-


-


-


156


(749)


(2,129)


(56)


12


(80)

Net increase (decrease) in net assets from operations


$(280)


$878


$1,750


$(4)


$-


$-


$-


$-


$-


$56


$(514)


$(1,938)


$14


$40


$(12)

S-13
 

Putnam VT Growth and Income Fund Class IA Shares

Putnam VT New Opportunities Fund Class IA Shares

Putnam VT Small Cap Value Fund Class IA Shares

Putnam VT Utilities Growth and Income Fund Class IA Shares

Putnam VT Voyager Fund Class IA Shares
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Income:

                              

Dividends

$683

$704

$696

$-

$-

$-

$7

$-

$-

$57

$77

$92

$750

$122

$43

Expenses:

                              

Mortality and expense risk

(178)

(362)

(333)

(147)

(341)

(555)

(8)

(3)

-

(8)

(21)

(25)

(407)

(913)

(1,236)

Net investment income (loss)

505

342

363

(147)

(341)

(555)

(1)

(3)

-

49

56

67

343

(791)

(1,193)


Realized gains (losses) on

                              

Investments:

 		                             

Realized gain (loss) on sales of fund shares


(1,149)


(1,350)


573


(719)


(345)


978


108


41


-


(43)


(31)


100


(1,729)


(728)


3,667

Realized gain distributions

227

491

3,276

-

7,535

4,868

24

-

-

-

131

163

-

24,923

18,112


Realized gain (loss)


(922)


(859)


3,849


(719)


7,190


5,846


132


41


-


(43)


100


263


(1,729)


24,195


21,779

Change in unrealized appreciation (depreciation) during the period


(3,766)


(2,653)


(1,155)


(7,480)


(22,537)


(23,233)


(174)


62


-


(300)


(778)


101


(16,061)


(52,546)


(46,020)

Net increase (decrease) in net assets from operations


$(4,183)


$(3,170)


$3,057


$(8,346)


$(15,688)


$(17,942)


$(43)


$100


$-


$(294)


$(622)


$431


$(17,447)


$(29,142)


$(25,434)

The accompanying notes are an integral part of the financial statements.

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended June 30, 2002, and the years ended December 31, 2001 and 2000
(In Thousands)
(Unaudited)
 


Alger American Growth Portfolio

Alger American Leveraged AllCap Portfolio

Alger American MidCap Growth Portfolio

Alger American Small Capitalization Portfolio
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Increase (decrease) in net assets from operations:

                        

Net investment income (loss)

$(147)

$(229)

$(353)

$(10)

$(16)

$(5)

$(58)

$(98)

$(68)

$(23)

$(42)

$(60)

Realized gains (losses)

(6,593)

(5,076)

7,321

(631)

(90)

5

(860)

(987)

1,784

43

(3,774)

466

Unrealized appreciation (depreciation) during the

                       

period

(2,160)

(228)

(14,672)

(36)

(219)

(399)

(2,053)

87

(1,604)

(1,088)

1,654

(3,137)

Net increase (decrease) in net assets from operations

(8,900)

(5,533)

(7,704)

(677)

(325)

(399)

(2,971)

(998)

112

(1,068)

(2,162)

(2,731)

Contract transactions:

                        

Net premium payments

6,211

13,082

14,594

572

1,227

463

2,375

3,966

2,577

935

2,198

2,710

Surrenders

(727)

(1,269)

(770)

(36)

(22)

-

(215)

(362)

(112)

(127)

(155)

(102)

Transfers between sub-accounts (including fixed

                       

account), net

666

712

3,527

366

662

1,622

2,138

3,444

4,739

148

(114)

1,468

Policy loans

(90)

(234)

(438)

(7)

(1)

6

(56)

(107)

(48)

(4)

(32)

(41)

Loan collateral interest

31

47

27

-

1

-

8

14

4

5

5

3

Death benefits

(55)

(22)

(47)

(4)

-

-

(6)

(259)

(7)

(2)

(9)

(12)

Contract charges

(2,296)

(4,338)

(3,262)

(188)

(292)

(51)

(898)

(1,419)

(690)

(346)

(659)

(564)

Net increase (decrease) in net assets from contract

                       

transactions

3,740

7,978

13,631

703

1,575

2,040

3,346

5,277

6,463

609

1,234

3,462

Total increase (decrease) in net assets

(5,160)

2,445

5,927

26

1,250

1,641

375

4,279

6,575

(459)

(928)

731

Net assets at beginning of year

44,966

42,521

36,594

2,891

1,641

-

15,831

11,552

4,977

6,285

7,213

6,482

Net assets at end of period

$39,806

$44,966

$42,521

$2,917

$2,891

$1,641

$16,206

$15,831

$11,552

$5,826

$6,285

$7,213

S-14
 

AIM V.I. Dent Demographic Trends Fund

Fidelity's VIP Equity-Income Portfolio - IC Shares

Fidelity's VIP Growth Portfolio - IC Shares

Fidelity's VIP High Income Portfolio - IC Shares
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Increase (decrease) in net assets from operations:

                        

Net investment income (loss)

$(14)

$(27)

$(10)

$1,166

$851

$855

$(257)

$(1,172)

$(1,506)

$1,367

$1,796

$1,164

Realized gains (losses)

(1,547)

(679)

-

1,500

5,021

12,868

1,081

15,415

29,340

(2,415)

(3,072)

(494)

Unrealized appreciation (depreciation) during the

                       

period

600

(738)

(766)

(9,321)

(11,744)

(6,727)

(29,452)

(47,409)

(51,728)

433

(544)

(5,091)

Net increase (decrease) in net assets from operations

(961)

(1,444)

(776)

(6,655)

(5,872)

6,996

(28,628)

(33,166)

(23,894)

(615)

(1,820)

(4,421)

Contract transactions:

                        

Net premium payments

1,002

2,242

1,070

6,116

11,756

12,023

9,118

18,916

21,389

1,257

2,557

3,200

Surrenders

(51)

(52)

(1)

(2,028)

(4,280)

(3,373)

(3,046)

(6,831)

(6,480)

(224)

(689)

(592)

Transfers between sub-accounts (including fixed

                       

account), net

(56)

576

3,368

(1,304)

6,382

(8,160)

(1,425)

(1,736)

(3,433)

(2,635)

2,536

(2,263)

Policy loans

(10)

(9)

(7)

(433)

(1,336)

(1,432)

(869)

(1,980)

(4,275)

(54)

(127)

(281)

Loan collateral interest

1

2

-

140

256

205

248

455

347

29

49

41

Death benefits

(4)

(1)

-

(84)

(498)

(142)

(124)

(259)

(492)

(45)

(19)

(51)

Contract charges

(307)

(557)

(107)

(3,363)

(6,070)

(4,701)

(4,752)

(9,443)

(9,339)

(577)

(1,098)

(1,053)

Net increase (decrease) in net assets from contract

                       

transactions

575

2,201

4,323

(956)

6,210

(5,580)

(850)

(878)

(2,283)

(2,249)

3,209

(999)

Total increase (decrease) in net assets

(386)

757

3,547

(7,611)

338

1,416

(29,478)

(34,044)

(26,177)

(2,864)

1,389

(5,420)

Net assets at beginning of year

4,304

3,547

-

101,346

101,008

99,592

146,559

180,603

206,780

16,110

14,721

20,141

Net assets at end of period

$3,918

$4,304

$3,547

$93,735

$101,346

$101,008

$117,081

$146,559

$180,603

$13,246

$16,110

$14,721

The accompanying notes are an integral part of the financial statements.

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended June 30, 2002, and the years ended December 31, 2001 and 2000
(In Thousands)
(Unaudited)
 

Fidelity's VIP Money Market Portfolio - IC Shares

Fidelity's VIP Overseas Portfolio - IC Shares

Fidelity's VIP II Asset Manager Portfolio - IC Shares

Fidelity's VIP II Contrafund Portfolio -- IC Shares
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Increase (decrease) in net assets from operations:

                        

Net investment income (loss)

$292

$1,515

$1,864

$40

$779

$179

$731

$884

$811

$256

$(35)

$(382)

Realized gains (losses)

-

-

-

(553)

748

3,535

(267)

275

3,218

(362)

1,669

16,361

Unrealized appreciation (depreciation) during the

                       

period

-

(1)

1

154

(5,631)

(9,029)

(2,326)

(2,541)

(5,473)

(732)

(11,269)

(21,649)

Net increase (decrease) in net assets from operations

292

1,514

1,865

(359)

(4,104)

(5,315)

(1,862)

(1,382)

(1,444)

(838)

(9,635)

(5,670)

Contract transactions:

                        

Net premium payments

20,537

52,297

77,091

15

(2)

4

(2)

(14)

-

6,591

14,366

16,473

Surrenders

(1,342)

(1,685)

(1,315)

(316)

(851)

(873)

(488)

(1,210)

(1,136)

(1,407)

(2,977)

(2,097)

Transfers between sub-accounts (including fixed

                       

account), net

(8,615)

(37,594)

(62,827)

(358)

(842)

(1,926)

(515)

(536)

(2,195)

(245)

(601)

(5,489)

Policy loans

(340)

(1,270)

(1,267)

(81)

(315)

(502)

(156)

(381)

(454)

(251)

(626)

(841)

Loan collateral interest

121

173

140

-

-

-

-

-

-

38

70

40

Death benefits

(63)

(352)

(78)

(46)

(21)

(105)

(64)

(69)

(57)

(42)

(80)

(67)

Contract charges

(2,730)

(4,954)

(3,706)

(339)

(801)

(1,027)

(605)

(1,298)

(1,399)

(2,951)

(5,493)

(4,763)

Net increase (decrease) in net assets from contract

                       

transactions

7,568

6,615

8,038

(1,125)

(2,832)

(4,429)

(1,830)

(3,508)

(5,241)

1,733

4,659

3,256

Total increase (decrease) in net assets

7,860

8,129

9,903

(1,484)

(6,936)

(9,744)

(3,692)

(4,890)

(6,685)

895

(4,976)

(2,414)

Net assets at beginning of year

51,300

43,171

33,268

12,989

19,925

29,669

22,760

27,650

34,335

68,158

73,134

75,548

Net assets at end of period

$59,160

$51,300

$43,171

$11,505

$12,989

$19,925

$19,068

$22,760

$27,650

$69,053

$68,158

$73,134

S-15
 

Fidelity's VIP II Index 500 Portfolio - IC Shares

Fidelity's VIP II Investment Grade Bond Portfolio - IC Shares


GCG Trust Fully Managed Series


GCG Trust Mid-Cap Growth Series
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Increase (decrease) in net assets from operations:

                        

Net investment income (loss)

$636

$260

$137

$451

$355

$385

$(8)

$25

$-

$(1)

$-

$-

Realized gains (losses)

1,204

885

3,486

152

2

(28)

(11)

27

-

(20)

(3)

-

Unrealized appreciation (depreciation) during the

                       

period

(13,352)

(12,099)

(12,639)

(237)

326

318

(1)

(32)

-

(133)

9

-

Net increase (decrease) in net assets from operations

(11,512)

(10,954)

(9,016)

366

683

675

(20)

20

-

(154)

6

-

Contract transactions:

                        

Net premium payments

9,687

20,658

21,680

1,361

2,038

1,378

509

217

-

87

52

-

Surrenders

(2,199)

(3,642)

(2,072)

(174)

(360)

(200)

(33)

(1)

-

(1)

-

-

Transfers between sub-accounts (including fixed

                       

account), net

1,116

876

(4,931)

1,516

3,263

16

1,841

1,268

-

252

118

-

Policy loans

(216)

(489)

(1,492)

(47)

(316)

(69)

1

-

-

(1)

-

-

Loan collateral interest

92

124

67

19

15

9

2

-

-

-

-

-

Death benefits

(62)

(105)

(83)

(11)

(7)

(12)

-

(1)

-

-

-

-

Contract charges

(4,020)

(7,612)

(6,312)

(607)

(846)

(429)

(156)

(53)

-

(22)

(6)

-

Net increase (decrease) in net assets from contract

                       

transactions

4,398

9,810

6,857

2,057

3,787

693

2,164

1,430

-

315

164

-

Total increase (decrease) in net assets

(7,114)

(1,144)

(2,159)

2,423

4,470

1,368

2,144

1,450

-

161

170

-

Net assets at beginning of year

81,285

82,429

84,588

12,228

7,758

6,390

1,450

-

-

170

-

-

Net assets at end of period

$74,171

$81,285

$82,429

$14,651

$12,228

$7,758

$3,594

$1,450

$-

$331

$170

$-

The accompanying notes are an integral part of the financial statements.

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended June 30, 2002, and the years ended December 31, 2001 and 2000
(In Thousands)
(Unaudited)
 

ING Income Shares VP Bond Portfolio Class R Shares

ING Partners Van Kampen Comstock Portfolio Initial Class

ING Partners UBS Tactical Asset Allocation Portfolio Initial Class

ING VP Index Plus LargeCap Portfolio Class R Shares
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Increase (decrease) in net assets from operations:

                        

Net investment income (loss)

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

Realized gains (losses)

-

-

-

-

-

-

-

-

-

-

-

-

Unrealized appreciation (depreciation) during the

                       

period

-

-

-

(2)

-

-

(1)

-

-

-

-

-

Net increase (decrease) in net assets from operations

-

-

-

(2)

-

-

(1)

-

-

-

-

-

Contract transactions:

                        

Net premium payments

1

-

-

5

-

-

-

-

-

-

-

-

Surrenders

-

-

-

-

-

-

-

-

-

-

-

-

Transfers between sub-accounts (including fixed

                       

account), net

13

-

-

21

-

-

5

-

-

-

-

-

Policy loans

-

-

-

-

-

-

-

-

-

-

-

-

Loan collateral interest

-

-

-

-

-

-

-

-

-

-

-

-

Death benefits

-

-

-

-

-

-

-

-

-

-

-

-

Contract charges

-

-

-

-

-

-

-

-

-

-

-

-

Net increase (decrease) in net assets from contract

                       

transactions

14

-

-

26

-

-

5

-

-

-

-

-

Total increase (decrease) in net assets

14

-

-

24

-

-

4

-

-

-

-

-

Net assets at beginning of year

-

-

-

-

-

-

-

-

-

-

-

-

Net assets at end of period

$14

$-

$-

$24

$-

$-

$4

$-

$-

$-

$-

$-

S-16
 

ING VP Index Plus MidCap Portfolio Class R Shares

ING VP Index Plus Small Cap Portfolio Class R Shares

ING VP Growth Opportunities Portfolio Class R Shares

ING VP Growth + Value Portfolio
Class R Shares
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Increase (decrease) in net assets from operations:

Net investment income (loss)

$-

$-

$-

$-

$-

$-

$(9)

$(14)

$(1)

$(62)

$(125)

$(115)

Realized gains (losses)

-

-

-

-

-

-

(917)

(276)

(1)

(7,396)

(1,286)

2,598

Unrealized appreciation (depreciation) during the

                       

period

-

-

-

(1)

-

-

425

(596)

(272)

3,887

(4,812)

(6,511)

Net increase (decrease) in net assets from operations

-

-

-

(1)

-

-

(501)

(886)

(274)

(3,571)

(6,223)

(4,028)

Contract transactions:

                        

Net premium payments

-

-

-

2

-

-

732

1,557

528

3,213

6,843

5,190

Surrenders

-

-

-

-

-

-

(34)

(21)

(1)

(250)

(363)

(113)

Transfers between sub-accounts (including fixed

                       

account), net

4

-

-

16

-

-

18

725

1,431

(407)

2,114

11,000

Policy loans

-

-

-

-

-

-

(1)

(7)

(2)

(21)

91

(248)

Loan collateral interest

-

-

-

-

-

-

-

-

-

15

23

10

Death benefits

-

-

-

-

-

-

(4)

-

-

(9)

(35)

(46)

Contract charges

-

-

-

-

-

-

(236)

(379)

(71)

(1,051)

(1,911)

(991)

Net increase (decrease) in net assets from contract

                       

transactions

4

-

-

18

-

-

475

1,875

1,885

1,490

6,762

14,802

Total increase (decrease) in net assets

4

-

-

17

-

-

(26)

989

1,611

(2,081)

539

10,774

Net assets at beginning of year

-

-

-

-

-

-

2,600

1,611

-

18,089

17,550

6,776

Net assets at end of period

$4

$-

$-

$17

$-

$-

$2,574

$2,600

$1,611

$16,008

$18,089

$17,550

The accompanying notes are an integral part of the financial statements.

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended June 30, 2002, and the years ended December 31, 2001and 2000
(In Thousands)
(Unaudited)
 

ING VP High Yield Bond Portfolio Class R Shares

ING VP International Portfolio Class R Shares

ING VP MagnaCap Portfolio Class R Shares

ING VP MidCap Opportunities Portfolio Class R Shares
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Increase (decrease) in net assets from operations:

                        

Net investment income (loss)

$56

$99

$77

$(7)

$58

$58

$(1)

$3

$-

$(4)

$(4)

$(1)

Realized gains (losses)

(120)

(188)

(34)

(1,058)

43

1,142

(26)

(7)

-

(204)

(107)

(6)

Unrealized appreciation (depreciation) during the

                       

period

21

74

(158)

876

(858)

(883)

(66)

(14)

(1)

2

(109)

(27)

Net increase (decrease) in net assets from operations

(43)

(15)

(115)

(189)

(757)

317

(93)

(18)

(1)

(206)

(220)

(34)

Contract transactions:

                        

Net premium payments

276

368

356

1,402

1,909

1,589

229

247

36

357

517

133

Surrenders

(22)

(36)

(9)

(52)

(201)

(50)

(3)

(6)

-

(18)

(12)

-

Transfers between sub-accounts (including fixed

                       

account), net

132

147

(19)

1,958

1,488

700

388

208

108

34

774

331

Policy loans

(6)

9

-

(18)

(39)

(36)

(1)

-

-

(6)

(7)

5

Loan collateral interest

-

1

-

6

8

5

-

-

-

-

-

-

Death benefits

(2)

(4)

(3)

(5)

(14)

(15)

-

-

-

(1)

-

-

Contract charges

(106)

(148)

(75)

(447)

(601)

(334)

(67)

(63)

(8)

(111)

(156)

(18)

Net increase (decrease) in net assets from contract

                       

transactions

272

337

250

2,844

2,550

1,859

546

386

136

255

1,116

451

Total increase (decrease) in net assets

229

322

135

2,655

1,793

2,176

453

368

135

49

896

417

Net assets at beginning of year

1,220

898

763

7,806

6,013

3,837

503

135

-

1,313

417

-

Net assets at end of period

$1,449

$1,220

$898

$10,461

$7,806

$6,013

$956

$503

$135

$1,362

$1,313

$417

S-17
 

ING VP Research Enhanced Index Portfolio Class R Shares

ING VP SmallCap Opportunities Portfolio Class R Shares

Janus Aspen Series Aggressive Growth Portfolio


Janus Aspen Series Growth Portfolio
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Increase (decrease) in net assets from operations:

Net investment income (loss)

$(7)

$(5)

$(8)

$(92)

$(191)

$(188)

$(98)

$(231)

$2,113

$(106)

$(208)

$558

Realized gains (losses)

(179)

(76)

(64)

(2,654)

(382)

3,106

(18,953)

(1,458)

5,151

(5,177)

(464)

1,973

Unrealized appreciation (depreciation) during the

                       

period

(117)

(204)

(260)

(4,829)

(8,302)

(4,345)

12,946

(15,612)

(26,058)

410

(8,582)

(8,901)

Net increase (decrease) in net assets from operations

(303)

(285)

(332)

(7,575)

(8,875)

(1,427)

(6,105)

(17,301)

(18,794)

(4,873)

(9,254)

(6,370)

Contract transactions:

                        

Net premium payments

310

601

717

3,923

7,578

6,757

5,438

13,259

14,541

4,088

10,025

11,099

Surrenders

(52)

(56)

(17)

(281)

(559)

(374)

(610)

(928)

(859)

(432)

(863)

(388)

Transfers between sub-accounts (including fixed

                       

account), net

(44)

(14)

54

713

3,454

14,176

(1,718)

(18)

22,328

(1,159)

(749)

13,751

Policy loans

(5)

(15)

(22)

(181)

(166)

(205)

(63)

(126)

(572)

(39)

47

(246)

Loan collateral interest

2

3

2

11

15

6

34

65

43

12

36

19

Death benefits

-

-

-

(21)

(30)

(2)

(30)

(46)

(23)

(47)

(314)

(15)

Contract charges

(110)

(207)

(171)

(1,297)

(2,429)

(1,475)

(1,852)

(3,899)

(3,312)

(1,572)

(3,195)

(2,442)

Net increase (decrease) in net assets from contract

                       

transactions

101

312

563

2,867

7,863

18,883

1,199

8,307

32,146

851

4,987

21,778

Total increase (decrease) in net assets

(202)

27

231

(4,708)

(1,012)

17,456

(4,906)

(8,994)

13,352

(4,022)

(4,267)

15,408

Net assets at beginning of year

2,208

2,181

1,950

26,824

27,836

10,380

30,499

39,493

26,141

29,811

34,078

18,670

Net assets at end of period

$2,006

$2,208

$2,181

$22,116

$26,824

$27,836

$25,593

$30,499

$39,493

$25,789

$29,811

$34,078

The accompanying notes are an integral part of the financial statements.

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended June 30, 2002, and the years ended December 31, 2001 and 2000
(In Thousands)
(Unaudited)
 

Janus Aspen Series International Growth Portfolio

Janus Aspen Series Worldwide Growth Portfolio

Neuberger Berman AMT Limited Maturity Bond Portfolio

Neuberger Berman AMT Partners Portfolio
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Increase (decrease) in net assets from operations:

                        

Net investment income (loss)

$13

$70

$169

$(6)

$(157)

$706

$376

$236

$180

$5

$(42)

$(7)

Realized gains (losses)

(856)

(9,178)

5,310

(11,389)

(6,930)

15,144

34

(15)

(59)

(311)

37

1,107

Unrealized appreciation (depreciation) during the

                       

period

(956)

4,758

(8,683)

3,980

(7,615)

(27,191)

(255)

187

97

(754)

(330)

(1,093)

Net increase (decrease) in net assets from operations

(1,799)

(4,350)

(3,204)

(7,415)

(14,702)

(11,341)

155

408

218

(1,060)

(335)

7

Contract transactions:

                        

Net premium payments

2,754

5,328

5,497

6,944

15,560

16,869

1,312

1,585

1,174

1,034

2,102

2,594

Surrenders

(318)

(397)

(195)

(709)

(1,467)

(1,186)

(115)

(127)

(40)

(130)

(612)

(191)

Transfers between sub-accounts (including fixed

                       

account), net

1,981

729

6,371

(1,327)

(247)

5,653

1,500

1,976

(183)

229

89

(1,458)

Policy loans

(37)

(103)

(116)

(104)

(383)

(645)

(15)

40

(9)

(7)

(23)

(19)

Loan collateral interest

19

35

22

43

74

39

4

4

1

5

4

1

Death benefits

(12)

(38)

(27)

(70)

(293)

(86)

(3)

(2)

(13)

(3)

(4)

(8)

Contract charges

(998)

(1,751)

(1,164)

(2,511)

(4,982)

(4,053)

(438)

(592)

(295)

(443)

(830)

(657)

Net increase (decrease) in net assets from contract

                       

transactions

3,389

3,803

10,388

2,266

8,262

16,591

2,245

2,884

635

685

726

262

Total increase (decrease) in net assets

1,590

(547)

7,184

(5,149)

(6,440)

5,250

2,400

3,292

853

(375)

391

269

Net assets at beginning of year

18,555

19,102

11,918

53,757

60,197

54,947

7,482

4,190

3,337

9,503

9,112

8,843

Net assets at end of period

$20,145

$18,555

$19,102

$48,608

$53,757

$60,197

$9,882

$7,482

$ 4,190

$9,128

$9,503

$9,112

S-18
 

Neuberger Berman AMT Socially Responsive Portfolio

OCC Accumulation Trust Equity Portfolio

OCC Accumulation Trust Global Equity Portfolio

OCC Accumulation Trust Managed Portfolio
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Increase (decrease) in net assets from operations:

Net investment income (loss)

$(2)

$(2)

$(1)

$20

$(9)

$(1)

$1

$(13)

$1

$112

$84

$27

Realized gains (losses)

(23)

(5)

-

(115)

(47)

147

(138)

(142)

141

(172)

56

205

Unrealized appreciation (depreciation) during the

                       

period

(28)

(3)

2

(426)

(255)

91

22

(72)

(55)

(724)

(546)

230

Net increase (decrease) in net assets from operations

(53)

(10)

1

(521)

(311)

237

(115)

(227)

87

(784)

(406)

462

Contract transactions:

                        

Net premium payments

177

227

108

574

1,090

647

220

324

390

1,164

1,672

1,450

Surrenders

(4)

(6)

(3)

(69)

(61)

(52)

(11)

(22)

(26)

(124)

(178)

(120)

Transfers between sub-accounts (including fixed

                       

account), net

23

279

92

234

1,720

80

180

165

(132)

1,164

1,426

(622)

Policy loans

(1)

(1)

-

(30)

(5)

(15)

(4)

(45)

(13)

(17)

(50)

(55)

Loan collateral interest

-

-

-

2

1

-

1

2

1

9

8

5

Death benefits

-

-

-

(2)

(5)

-

-

-

-

(2)

(9)

(1)

Contract charges

(57)

(89)

(25)

(248)

(338)

(157)

(81)

(144)

(82)

(465)

(649)

(417)

Net increase (decrease) in net assets from contract

                       

transactions

138

410

172

461

2,402

503

305

280

138

1,729

2,220

240

Total increase (decrease) in net assets

85

400

173

(60)

2,091

740

190

53

225

945

1,814

702

Net assets at beginning of year

621

221

48

4,625

2,534

1,794

1,479

1,426

1,201

7,904

6,090

5,388

Net assets at end of period

$706

$621

$221

$ 4,565

$4,625

$2,534

$1,669

$1,479

$1,426

$ 8,849

$7,904

$6,090

The accompanying notes are an integral part of the financial statements.

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended June 30, 2002, and the years ended December 31, 2001 and 2000
(In Thousands)
(Unaudited)
 

OCC Accumulation Trust

Small Cap Portfolio

Pioneer Variable Contract Trust Mid-Cap Value VCT Portfolio Class 1

Pioneer Variable Contract Trust Small Cap Value VCT Portfolio Class 1

Putnam VT Asia Pacific Growth Fund Class IA Shares
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Increase (decrease) in net assets from operations:

                        

Net investment income (loss)

$(39)

$(13)

$(14)

$-

$-

$-

$-

$-

$-

$6

$(15)

$114

Realized gains (losses)

2,252

635

165

2

-

-

-

-

-

(106)

250

77

Unrealized appreciation (depreciation) during the

                       

period

(2,493)

256

1,599

(6)

-

-

-

-

-

156

(749)

(2,129)

Net increase (decrease) in net assets from operations

(280)

878

1,750

(4)

-

-

-

-

-

56

(514)

(1,938)

Contract transactions:

                        

Net premium payments

1,391

1,966

1,416

5

-

-

4

-

-

16

(10)

3

Surrenders

(117)

(218)

(83)

-

-

-

-

-

-

(22)

(67)

(95)

Transfers between sub-accounts (including fixed

                       

account), net

2,382

3,019

(604)

57

-

-

24

-

-

(42)

(91)

(150)

Policy loans

(21)

(59)

(33)

-

-

-

-

-

-

(4)

(19)

(56)

Loan collateral interest

8

8

2

-

-

-

-

-

-

-

-

-

Death benefits

(8)

(3)

(20)

-

-

-

-

-

-

-

-

-

Contract charges

(593)

(788)

(359)

(1)

-

-

(1)

-

-

(41)

(95)

(137)

Net increase (decrease) in net assets from contract

                       

transactions

3,042

3,925

319

61

-

-

27

-

-

(93)

(282)

(435)

Total increase (decrease) in net assets

2,762

4,803

2,069

57

-

-

27

-

-

(37)

(796)

(2,373)

Net assets at beginning of year

10,997

6,194

4,125

-

-

-

-

-

-

1,433

2,229

4,602

Net assets at end of period

$13,759

$10,997

$6,194

$57

$-

$-

$27

$-

$-

$1,396

$1,433

$2,229

S-19
 

Putnam VT Diversified Income Fund Class IA Shares

Putnam VT Growth and Income Fund Class IA Shares

Putnam VT New Opportunities Fund Class IA Shares

Putnam VT Small Cap Value Fund Class IA Shares
 

2002

2001

2000

2002

2001

2000

2002

2001

2000

2002

2001

2000

Increase (decrease) in net assets from operations:

Net investment income (loss)

$102

$89

$114

$505

$342

$363

$(147)

$(341)

$(555)

$(1)

$(3)

$-

Realized gains (losses)

(32)

(61)

(46)

(922)

(859)

3,849

(719)

7,190

5,846

132

41

-

Unrealized appreciation (depreciation) during the

                       

period

(56)

12

(80)

(3,766)

(2,653)

(1,155)

(7,480)

(22,537)

(23,233)

(174)

62

-

Net increase (decrease) in net assets from operations

14

40

(12)

(4,183)

(3,170)

3,057

(8,346)

(15,688)

(17,942)

(43)

100

-

Contract transactions:

                        

Net premium payments

(1)

7

(9)

3,687

7,601

7,739

4,446

9,976

10,644

437

162

-

Surrenders

(27)

(43)

(49)

(750)

(1,578)

(1,022)

(627)

(1,820)

(1,520)

(21)

(1)

-

Transfers between sub-accounts (including fixed

                       

account), net

(16)

(80)

(165)

(19)

1,574

(1,817)

(1,288)

(20)

3,840

1,621

998

-

Policy loans

(5)

(18)

(33)

(81)

(421)

(424)

(125)

(394)

(1,013)

(45)

(4)

-

Loan collateral interest

-

-

-

40

56

35

37

59

31

1

-

-

Death benefits

-

-

-

(42)

(90)

(126)

(15)

(17)

(147)

-

(1)

-

Contract charges

(39)

(81)

(74)

(1,771)

(3,282)

(2,417)

(1,631)

(3,416)

(3,627)

(165)

(55)

-

Net increase (decrease) in net assets from contract

                       

transactions

(88)

(215)

(330)

1,064

3,860

1,968

797

4,368

8,208

1,828

1,099

-

Total increase (decrease) in net assets

(74)

(175)

(342)

(3,119)

690

5,025

(7,549)

(11,320)

(9,734)

1,785

1,199

-

Net assets at beginning of year

1,248

1,423

1,765

43,533

42,843

37,818

38,232

49,552

59,286

1,199

-

-

Net assets at end of period

$1,174

$1,248

$1,423

$40,414

$43,533

$42,843

$30,683

$38,232

$ 49,552

$2,984

$1,199

$-

4

The accompanying notes are an integral part of the financial statements.

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended June 30, 2002, and the years ended December 31, 2001 and 2000
(In Thousands)
(Unaudited)

 

 

Putnam VT Utilities Growth and Income Fund Class IA Shares

Putnam VT Voyager Fund Class IA Shares
 

2002

2001

2000

2002

2001

2000

Increase (decrease) in net assets from operations:

            

Net investment income (loss)

$49

$56

$67

$343

$(791)

$(1,193)

Realized gains (losses)

(43)

100

263

(1,729)

24,195

21,779

Unrealized appreciation (depreciation) during the

           

period

(300)

(778)

101

(16,061)

(52,546)

(46,020)

Net increase (decrease) in net assets from operations

(294)

(622)

431

(17,447)

(29,142)

(25,434)

Contract transactions:

            

Net premium payments

-

-

(2)

8,837

20,445

22,530

Surrenders

(18)

(109)

(65)

(1,900)

(4,303)

(4,056)

Transfers between sub-accounts (including fixed

           

account), net

(17)

(57)

(283)

(1,506)

(915)

797

Policy loans

(3)

(38)

(54)

(387)

(928)

(2,120)

Loan collateral interest

-

-

-

97

160

100

Death benefits

-

(18)

(6)

(67)

(124)

(306)

Contract charges

(58)

(143)

(156)

(3,892)

(7,993)

(7,857)

Net increase (decrease) in net assets from contract

           

transactions

(96)

(365)

(566)

1,182

6,342

9,088

Total increase (decrease) in net assets

(390)

(987)

(135)

(16,265)

(22,800)

(16,346)

Net assets at beginning of year

1,915

2,902

3,037

101,802

124,602

140,948

Net assets at end of period

$1,525

$1,915

$2,902

$85,537

$101,802

$124,602

S-20













The accompanying notes are an integral part of the financial statements.

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

1.

Organization:
 

ReliaStar SelectH Life Variable Account (the "Account") is a separate account of ReliaStar Life Insurance Company ("ReliaStar Life"), a wholly-owned subsidiary of ING ReliaStar Financial Corp, which is itself an indirect wholly-owned subsidiary of ING Groep N.V. The Account is registered as a unit investment trust under the Investment Company Act of 1940.
 

The Account consists of the SelectH Life I product and SelectH Life Series 2000 funds, which incorporates SelectH Life II, SelectH Life III, Variable Estate Design, Variable Accumulation Design and Flex Design products. Payments received for the policies under these products are allocated to sub-accounts of the Account, each of which is invested in one of the following funds during the year:

The Alger American Fund

ING Variable Products Trust

Growth Portfolio

ING VP Growth Opportunities Portfolio - Class R Shares

Leveraged AllCap Portfolio

ING VP Growth + Value Fund Portfolio - Class R Shares

MidCap Growth Portfolio

ING VP High Yield Bond Portfolio - Class R Shares

Small Capitalization Portfolio

ING VP International Value Portfolio - Class R Shares
 

ING VP MagnaCap Portfolio - Class R Shares

AIM Variable Insurance Funds

ING VP MidCap Opportunities Portfolio - Class R Shares

AIM V.I. Dent Demographic Trends Fund - Series I Shares

ING VP Research Enhanced Index Portfolio - Class R Shares
 

ING VP SmallCap Opportunities Portfolio - Class R Shares

Fidelity's Variable Insurance Products Fund (VIP)

  

VIP Equity-Income Portfolio - IC Shares

Janus Aspen Series

VIP Growth Portfolio - IC Shares

Aggressive Growth Portfolio - Institutional Shares

VIP High Income Portfolio - IC Shares

Growth Portfolio - Institutional Shares

VIP Money Market Portfolio - IC Shares

International Growth Portfolio - Institutional Shares

VIP Overseas Portfolio - IC Shares

Worldwide Growth Portfolio - Institutional Shares
   

Fidelity's Variable Insurance Products Fund II (VIP II)

Neuberger Berman Advisers Management Trust

VIP II Asset Manager Portfolio - IC Shares

AMT Limited Maturity Bond Portfolio

VIP II Contrafund Portfolio - IC Shares

AMT Partners Portfolio

VIP II Index 500 Portfolio - IC Shares

AMT Socially Responsive Portfolio

VIP II Investment Grade Bond Portfolio - IC Shares

  
 

OCC Accumulation Trust

The GCG Trust

Equity Portfolio

GCG Trust Fully Managed Series - Class S Shares

Global Equity Portfolio

GCG Trust Mid-Cap Growth Series - Class S Shares

Managed Portfolio
 

Small Cap Portfolio

ING Income Shares

  

ING VP Bond Portfolio - Class R Shares

Pioneer Variable Contract Trust
 

Mid-Cap Value VCT Portfolio - Class 1

ING Partners

Small Cap Value VCT Portfolio - Class 1

Van Kampen Comstock Portfolio - Initial Class

  

UBS Tactical Asset Allocation Portfolio - Initial Class

Putnam Variable Trust
 

Putnam VT Asia Pacific Growth Fund - Class IA Shares

ING Variable Portfolios, Inc.

Putnam VT Diversified Income Fund - Class IA Shares

ING VP Index Plus LargeCap Portfolio - Class R Shares

Putnam VT Growth and Income Fund - Class IA Shares

ING VP Index Plus MidCap Portfolio - Class R Shares

Putnam VT New Opportunities Fund - Class IA Shares

ING VP Index Plus Small Cap Portfolio - Class R Shares

Putnam VT Small Cap Value Fund - Class IA Shares
 

Putnam VT Utilities Growth and Income Fund - Class IA Shares
 

Putnam VT Voyager Fund - Class IA Shares


S-21

 

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, Continued
(Unaudited)

1.

Organization, continued:
 

AIM Advisors, Inc. is the investment adviser for the AIM V.I. Dent Demographic Trends Fund and is paid fees for its services by the fund. Fred Alger Management, Inc. is the investment adviser for the four portfolios of The Alger American Fund and is paid fees for its services by The Alger American Fund Portfolios. Fidelity Management & Research Company is the investment adviser for Fidelity Variable Insurance Products Fund (VIP) and Variable Insurance Products Fund II (VIP II) and is paid for its services by the VIP and VIP II Portfolios. Directed Services, Inc. is the investment adviser for the two funds of The GCG Trust and is paid fees for its services by The GCG Trust. ING Investments, LLC, an affiliate of ReliaStar Life, is the investment adviser for the ING Income Shares Portfolio, the three ING Variable Portfolios, Inc. and the eight ING Variable Products Trust Portfolios and is paid fees for its services by the Portfolios. ING Life Insurance and Annuity Company is the investment adviser for the two portfolios of ING Partners, Inc. and is paid fees for its services by ING Partners, Inc. Janus Capital Corporation is the investment adviser for the four portfolios of Janus Aspen Series and is paid fees for its services by the Janus Aspen Series Portfolios. Neuberger Berman Management, Inc. is the investment manager for the three portfolios of the Neuberger Berman Advisers Management Trust and is paid fees for its services by the Neuberger Berman Advisers Management Trust Portfolios. OpCap Advisors is the investment adviser for the four Portfolios of the OCC Accumulation Trust and is paid fees for its services by the OCC Accumulation Trust Funds. Pioneer Investment Management, Inc. is the investment adviser for Pioneer Variable Contracts Trust and is paid fees for its services by Pioneer Variable Contracts Trust. Putnam Investment Management, Inc. is the investment adviser for Putnam Variable Trust and is paid fees for its services by Putnam Variable Trust. Further information is contained in the related funds' prospectuses.
 

Fidelity VIP II Contrafund Portfolio is a registered trademark of FMR Corporation.
 

On April 28, 2000, Pilgrim Advisors, Inc. merged with Pilgrim Investments, Inc.
 

On May 1, 2000, Northstar Galaxy Trust Portfolio changed its name to Pilgrim Variable Products Trust Portfolio (VP). Also on May 1, 2000, the Northstar Galaxy Trust Emerging Growth Portfolio and the Northstar Galaxy Trust Growth and Value Portfolio changed their names to Pilgrim VP SmallCap Opportunities Portfolio and Pilgrim VP Growth + Value Portfolio, respectively. In addition, sub-accounts investing in Pilgrim VP MagnaCap Portfolio, Pilgrim VP Growth Opportunities Portfolio, Pilgrim VP MidCap Opportunities Portfolio, Alger Leveraged AllCap Portfolio and AIM VI Dent Demographic Trends Fund were made available to purchasers of products held in the ReliaStar Life's SelectH Life Variable Account.
 

On May 1, 2001, sub-accounts investing in Putnam VT Small Cap Value Fund, GCG Trust Fully Managed Fund and GCG Trust Mid-Cap Growth Series Fund were made available to purchasers of ReliaStar Life's SelectH Life Variable Account.
 

On May 1, 2002, Pilgrim Variable Products Trust Portfolio (VP) changed its name to ING Variable Products Trust Portfolio (VP). Also on May 1, 2002, sub-accounts investing in ING VP Bond Portfolio, Van Kampen Comstock Portfolio, UBS Asset Allocation Portfolio, ING VP Index Plus LargeCap Portfolio, ING VP Index Plus MidCap Portfolio, ING VP Index Plus SmallCap Portfolio, Pioneer Mid-Cap Value VCT Portfolio and Pioneer Small Cap Value VCT Portfolio were made available to purchasers of products held in the ReliaStar Life's SelectH Life Variable Account.



S-22

 

 

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, Continued
(Unaudited)

2.

Significant Account Policies:
 

Investments: The market value of investments in the sub-accounts is based on the closing net asset values of the fund shares held at the end of the year. Investment transactions are accounted for on the trade date (date the order to purchase or redeem is executed) and dividend income and capital gain distributions are reinvested on the ex-dividend date. Net realized gains and losses on redemptions of shares of the funds are determined on the basis of specific identification of fund share costs.
 

Federal Income Taxes: The operations of the Account are included in the federal income tax return of ReliaStar Life, which is taxed as a life insurance company under the provisions of the Internal Revenue Code (IRC). Under the current provisions of the IRC, ReliaStar Life does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited under the contracts. Based on this, no charge is being made currently to the Account for federal income taxes. ReliaStar Life will review periodically the status of this policy in the event of changes in the tax law. A charge may be made in future years for any federal income taxes that would be attributable to the contracts.
 

Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported therein. Actual results could differ from these estimates.

3.

Charges and Transfers:
 

ReliaStar Life makes certain charges to Policy Owners' Variable Accumulation Values in the Account in accordance with the terms of the policies. These charges are set forth in the policies and may include: cost of insurance charge; monthly expense charge; death benefit guarantee charge; optional insurance benefit charges; and surrender charges net of any sales charge refunds. Transfers to (from) ReliaStar Life relate to gains and losses resulting from actual mortality experience, the full responsibility for which is assumed by ReliaStar Life, policyholder transfers between the general account and the sub-accounts and other policyholder activity including contract deposit and withdrawals. Unsettled transactions as of the reporting date appear on a net basis in the line Payable to (from) ReliaStar Life Insurance Company.

















S-23

 

 

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, Continued
(Unaudited)

 

4.

Purchases and Sales of Investments:
 

The cost of purchases and proceeds from sales of investments for the period ended June 30, 2002 were as follows (in thousands):
 

Cost of
Purchases

Proceeds
From Sales

Fund

    

The Alger American Fund:

    

Alger American Growth Portfolio

$15,072

$11,476

Alger American Leveraged AllCap Portfolio

1,748

1,056

Alger American MidCap Growth Portfolio

10,157

6,870

Alger American Small Capitalization Portfolio

10,833

10,247

AIM Variable Insurance Funds:

    

AIM VI Dent Demographic Trends Fund - Series I Shares

3,242

2,681

Fidelity's Variable Insurance Products Fund (VIP):

    

VIP Equity-Income Portfolio - IC Shares

26,967

24,605

VIP Growth Portfolio - IC Shares

11,555

12,643

VIP High Income Portfolio - IC Shares

20,229

21,113

VIP Money Market Portfolio - IC Shares

215,788

207,940

VIP Overseas Portfolio - IC Shares

543

1,625

Fidelity's Variable Insurance Products Fund II (VIP II):

    

VIP II Asset Manager Portfolio - IC Shares

1,133

2,232

VIP II Contrafund Portfolio - IC Shares

15,113

13,119

VIP II Index 500 Portfolio - IC Shares

22,289

17,265

VIP II Investment Grade Bond Portfolio - IC Shares

13,799

11,291

The GCG Trust:

    

GCG Trust Fully Managed - Class S Shares

3,240

1,083

GCG Trust Mid-Cap Growth Series - Class S Shares

1,145

830

ING Income Shares:

    

ING VP Bond Portfolio - Class R Shares

14

-

ING Partners:

    

Van Kampen Comstock Portfolio - Initial Class

26

-

UBS Tactical Asset Allocation Portfolio - Initial Class

5

-

ING Variable Portfolios, Inc:

    

ING VP Index Plus LargeCap Portfolio - Class R Shares

-

-

ING VP Index Plus MidCap Portfolio - Class R Shares

4

-

ING VP Index Plus SmallCap Portfolio - Class R Shares

19

1

ING Variable Products Trust:

    

ING VP Growth Opportunities Portfolio - Class R Shares

1,678

1,213

ING VP Growth + Value Portfolio - Class R Shares

9,085

7,657

ING VP High Yield Bond Portfolio - Class R Shares

801

478

ING VP International Value Portfolio - Class R Shares

19,046

16,210

ING VP MagnaCap Portfolio - Class R Shares

928

382

ING VP MidCap Opportunities Portfolio - Class R Shares

1,160

908

ING VP Research Enhanced Index Portfolio - Class R Shares

1,690

1,595

ING VP SmallCap Opportunities Portfolio - Class R Shares

9,903

7,119

Janus Aspen Series:

    

Aggressive Growth Portfolio - Institutional Shares

$11,481

$10,352

Growth Portfolio - Institutional Shares

10,246

9,552


S-24

 

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, Continued
(Unaudited)

4.

Purchases and Sales of Investments, continued:
 

Cost of
Purchases

Proceeds
From Sales

Fund

    

International Growth Portfolio - Institutional Shares

117,998

114,595

Worldwide Growth Portfolio - Institutional Shares

18,177

15,912

Neuberger Berman Advisers Management Trust:

    

AMT Limited Maturity Bond Portfolio

10,699

8,078

AMT Partners Portfolio

9,683

8,991

AMT Socially Responsive Portfolio

657

521

OCC Accumulation Trust:

    

Equity Portfolio

3,407

2,888

Global Equity Portfolio

2,048

1,742

Managed Portfolio

5,056

3,215

Small Cap Portfolio

18,407

13,751

Pioneer Variable Contract Trust:

    

Mid-Cap Value VCT Portfolio - Class I

64

1

Small Cap Value VCT Portfolio - Class I

27

-

Putnam Variable Trust:

    

Putnam VT Asia Pacific Growth Fund -- Class IA Shares

37

125

Putnam VT Diversified Income Fund -- Class IA Shares

108

92

Putnam VT Growth and Income Fund -- Class IA Shares

10,944

9,140

Putnam VT New Opportunities Fund -- Class IA Shares

8,567

7,901

Putnam VT Small Cap Value Fund -- Class IA Shares

58

106

Putnam VT Utilities Growth and Income Fund -- Class IA Shares

18,197

16,346

Putnam VT Voyager Fund -- Class IA Shares

13,790

12,270

Total Assets

$676,863

$617,217

5.

Changes in Units Outstanding

The changes in units outstanding for the period ended June 30, 2002, and the year ended December 31, 2001 were as follows:
 

2002

2001


Units
Issued


Units
Redeemed

Net Increase (Decrease)


Units
Issued


Units
Redeemed

Net Increase (Decrease)

The Alger American Fund:

Alger American Growth Portfolio

1,369,757

1,109,629

260,128

2,844,523

2,333,662

510,861

Alger American Leveraged AllCap Portfolio

515,673

396,478

119,195

1,201,387

963,169

238,218

Alger American MidCap Growth Portfolio

1,164,966

963,052

201,914

2,663,327

2,370,044

293,283

Alger American Small Capitalization Portfolio

1,987,319

1,927,747

59,572

2,520,020

2,378,744

141,276

AIM Variable Insurance Funds:

AIM VI Dent Demographic Trends Fund - Series I Shares

1,035,555

924,493

111,062

1,039,133

686,828

352,305

Fidelity's Variable Insurance Products Fund (VIP):

VIP Equity-Income Portfolio -- IC Shares

1,692,406

1,730,408

(38,002)

2,672,334

2,409,304

263,030

VIP Growth Portfolio -- IC Shares

878,747

881,324

(2,577)

1,320,783

1,297,324

23,459

VIP High Income Portfolio -- IC Shares

2,147,518

2,343,886

(196,368)

4,693,711

4,405,198

288,513

VIP Money Market Portfolio -- IC Shares

21,923,128

21,438,410

484,718

29,870,605

29,461,139

409,466

VIP Overseas Portfolio -- IC Shares

57,958

131,093

(73,135)

19,396

185,804

(166,408)

S-25

 

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, Continued
(Unaudited)

5.

Changes in Units Outstanding, continued:
 

2002

2001


Units
Issued


Units
Redeemed

Net Increase (Decrease)


Units
Issued


Units
Redeemed

Net Increase (Decrease)

Fidelity's Variable Insurance Products Fund II (VIP II):

VIP II Asset Manager Portfolio -- IC Shares

15,978

108,951

(92,973)

901

176,347

(175,446)

VIP II Contrafund Portfolio -- IC Shares

1,148,098

1,091,376

56,722

1,491,555

1,324,723

166,832

VIP II Index 500 Portfolio -- IC Shares

1,380,936

1,227,103

153,833

1,129,297

809,506

319,791

VIP II Investment Grade Bond Portfolio -- IC Shares

1,336,774

1,214,637

122,137

917,032

688,212

228,820

The GCG Trust

GCG Trust Fully Managed - Class S Shares

640,673

439,067

201,606

655,975

513,672

142,303

GCG Trust Mid-Cap Growth Series - Class S Shares

522,224

472,235

49,989

495,084

473,392

21,692

ING Income Shares:

ING VP Bond Portfolio - Class R Shares

151,207

149,870

1,337

-

-

-

ING Partners:

Van Kampen Comstock Portfolio - Initial Class

5,668

3,097

2,571

-

-

-

UBS Tactical Asset Allocation Portfolio - Initial Class

483

15

468

-

-

-

ING Variable Portfolios, Inc.:

ING VP Index Plus LargeCap Portfolio - Class R Shares

164

164

-

-

-

-

ING VP Index Plus MidCap Portfolio - Class R Shares

2,415

1,983

432

-

-

-

ING VP Index Plus SmallCap Portfolio - Class R Shares

11,251

9,339

1,912

-

-

-

ING Variable Products Trust:

ING VP Growth Opportunities Portfolio - Class R Shares

479,324

388,235

91,089

1,054,740

761,226

293,514

ING VP Growth + Value Portfolio - Class R Shares

942,747

837,587

105,160

1,806,053

1,400,144

405,909

ING VP High Yield Bond Portfolio - Class R Shares

125,933

96,622

29,311

1,453,770

1,418,573

35,197

ING VP International Value Portfolio - Class R Shares

1,911,665

1,736,528

175,137

2,452,062

2,297,505

154,557

ING VP MagnaCap Portfolio - Class R Shares

177,525

117,307

60,218

100,648

58,451

42,197

ING VP MidCap Opportunities Portfolio - Class R Shares

278,508

235,465

43,043

828,951

659,104

169,847

ING VP Research Enhanced Index Portfolio - Class R Shares

155,335

147,708

7,627

324,092

299,355

24,737

ING VP SmallCap Opportunities Portfolio - Class R Shares

607,545

507,833

99,712

980,620

758,233

222,387

Janus Aspen Series:

Aggressive Growth Portfolio - Institutional Shares

1,200,508

1,112,666

87,842

1,434,564

951,785

482,779

Growth Portfolio - Institutional Shares

937,800

879,350

58,450

1,038,061

711,787

326,274

International Growth Portfolio - Institutional Shares

11,670,328

11,342,824

327,504

7,269,147

6,975,373

293,774

Worldwide Growth Portfolio - Institutional Shares

1,756,486

1,598,895

157,591

3,672,309

3,151,639

520,670

Neuberger Berman Advisers Management Trust:

AMT Limited Maturity Bond Portfolio

1,190,722

1,016,048

174,674

563,497

331,074

232,423

AMT Partners Portfolio

1,346,522

1,291,324

55,198

1,737,807

1,679,667

58,140

AMT Socially Responsive Portfolio

58,982

45,389

13,593

249,366

209,481

39,885

OCC Accumulation Trust:

Equity Portfolio

515,205

478,773

36,432

516,065

336,127

179,938

Global Equity Portfolio

217,631

191,892

25,739

1,420,531

1,399,989

20,542

Managed Portfolio

1,298,891

1,155,862

143,029

512,315

334,454

177,861

Small Cap Portfolio

1,791,586

1,589,777

201,809

2,007,198

1,706,244

300,954

Pioneer Variable Contract Trust

Mid-Cap Value VCT Portfolio - Class I

20,918

14,724

6,194

-

-

-

Small Cap Value VCT Portfolio - Class I

8,091

5,259

2,832

-

-

-

Putnam Variable Trust:

Putnam VT Asia Pacific Growth Fund -- Class IA Shares

2,808

15,210

(12,402)

399

33,677

(33,278)

Putnam VT Diversified Income Fund -- Class IA Shares

76

6,592

(6,516)

322

16,982

(16,660)

Putnam VT Growth and Income Fund -- Class IA Shares

833,935

797,832

36,103

1,451,678

1,315,680

135,998

Putnam VT New Opportunities Fund -- Class IA Shares

704,183

670,862

33,321

966,248

788,719

177,529

Putnam VT Small Cap Value Fund -- Class IA Shares

2,228,849

2,074,658

154,191

1,912,842

1,803,926

108,916

Putnam VT Utilities Growth and Income Fund -- Class IA Shares

904

6,724

(5,820)

66

18,198

(18,132)

Putnam VT Voyager Fund -- Class IA Shares

954,088

924,789

29,299

1,226,963

1,037,282

189,681

S-26

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, Continued
(Unaudited)

6.

Unit Values

A summary of accumulation unit values and accumulation units outstanding for variable life contracts, expense ratios, excluding expenses of the underlying funds, investment income ratios and total returns for the period ended June 30, 2002 and the year ended December 31, 2001, follows:
 

Net Assets

  


Select*Life I Units

Select*Life Series 2000 Units

Select*Life I Unit Value

Select*Life Series 2000 Unit Value



(000's)



Expense Ratio

Investment Income Ratio

Select*Life I Total Return

Select*Life
Series 2000 Total Return

Alger American Growth Portfolio

2002

225,681

3,108,157

$11.51

$11.97

$39,806

0.0% to 0.8%1

0.04%1

-18.70%2

-18.38%2

2001

230,172

2,843,538

14.16

14.67

44,966

0.0% to 0.8%

0.23%

-12.53%

-11.81%

Alger American Leveraged AllCap Portfolio

2002

-

574,642

-

5.08

2,917

0.0%1

0.00%1

0.00%2

-20.03%2

2001

-

455,447

-

6.35

2,891

0.0%

0.00%

0.00%

-15.93%

Alger American MidCap Growth Portfolio

2002

118,912

1,005,787

13.91

14.47

16,206

0.0% to 0.8%1

0.00%1

-16.35%2

-16.02%2

2001

109,647

813,139

16.63

17.23

15,831

0.0% to 0.8%

0.00%

-7.28%

-6.52%

Alger American Small Capitalization Portfolio

2002

66,206

729,764

7.06

7.34

5,826

0.0% to 0.8%1

0.00%1

-14.60%2

-14.26%2

2001

71,919

664,479

8.27

8.56

6,285

0.0% to 0.8%

0.05%

-30.08%

-29.51%

AIM VI Dent Demographic Trends Fund

2002

-

913,407

-

4.29

3,918

0.0%1

0.00%1

0.00%2

-20.04%2

2001

-

802,345

-

5.36

4,304

0.0%

0.00%

0.00%

-31.91%

Fidelity's VIP Equity-Income Portfolio -- IC Shares

2002

869,194

2,479,551

38.82

24.20

93,735

0.0% to 0.8%1

1.58%1

-6.52%2

-6.15%2

2001

891,044

2,495,703

41.52

25.78

101,346

0.0% to 0.8%

1.69%

-5.72%

-4.96%

Fidelity's VIP Growth Portfolio -- IC Shares

2002

1,160,731

3,273,178

39.55

21.74

117,081

0.0% to 0.8%1

0.20%1

-19.57%2

-19.25%2

2001

1,217,904

3,218,582

49.17

26.93

146,559

0.0% to 0.8%

0.08%

-18.31%

-17.65%

Fidelity's VIP High Income Portfolio -- IC Shares

2002

243,108

794,048

19.56

10.69

13,246

0.0% to 0.8%1

9.55%1

-4.78%2

-4.41%2

2001

246,997

986,526

20.54

11.19

16,110

0.0% to 0.8%

12.86%

-12.44%

-11.73%

Fidelity's VIP Money Market Portfolio -- IC Shares

2002

347,938

3,433,939

19.89

15.21

59,160

0.0% to 0.8%1

1.05%1

0.50%2

0.89%2

2001

336,275

2,960,883

19.79

15.08

51,300

0.0% to 0.8%

4.00%

3.35%

4.19%

Fidelity's VIP Overseas Portfolio -- IC Shares

2002

233,959

499,668

19.35

13.96

11,505

0.0% to 0.8%1

0.57%1

-2.87%2

-2.49%2

2001

256,014

550,747

19.93

14.32

12,989

0.0% to 0.8%

5.72%

-21.80%

-21.17%

Fidelity's VIP II Asset Manager Portfolio -- IC Shares

2002

465,031

538,997

22.14

16.27

19,068

0.0% to 0.8%1

3.33%1

-8.73%2

-8.37%2

2001

504,235

592,768

24.26

17.76

22,760

0.0% to 0.8%

4.43%

-4.86%

-4.09%

1

Annualized


S-27

2

Total Return not annualized

 

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, Continued
(Unaudited)

6.

Unit Values, continued:
 

Net Assets

  


Select*Life I Units

Select*Life Series 2000 Units

Select*Life I Unit Value

Select*Life Series 2000 Unit Value



(000's)



Expense Ratio

Investment Income Ratio

Select*Life I Total Return

Select*Life
Series 2000 Total Return

Fidelity's VIP II Contrafund Portfolio -- IC Shares

2002

178,318

2,762,574

13.05

24.15

$69,053

0.0% to 0.8%1

0.80%1

-1.17%2

-0.78%2

2001

184,556

2,699,614

13.21

24.34

68,158

0.0% to 0.8%

0.78%

-12.95%

-12.24%

Fidelity's VIP II Index 500 Portfolio -- IC Shares

2002

262,484

2,814,955

24.06

24.11

74,171

0.0% to 0.8%1

1.19%1

-13.63%2

-13.28%2

2001

255,958

2,667,648

27.86

27.80

81,285

0.0% to 0.8%

1.12%

-12.81%

-12.10%

Fidelity's VIP II Investment Grade Bond Portfolio -- IC Shares

2002

100,811

740,222

20.48

17.00

14,651

0.0% to 0.8%1

5.03%1

2.77%2

3.17%2

2001

110,355

608,540

19.93

16.48

12,228

0.0% to 0.8%

4.34%

7.59%

8.46%

GCG Trust Fully Managed Series

2002

-

343,909

-

10.45

3,594

0.0%1

0.00%1

0.00%2

2.56%2

2001

-

142,303

-

10.19

1,450

0.0%

3.33%

0.00%

1.90%

GCG Trust Mid-Cap Growth Series

2002

-

71,681

-

4.62

331

0.0%1

0.00%1

0.00%2

-40.92%2

2001

-

21,692

-

7.82

170

0.0%

0.00%

0.00%

-21.80%

ING Income Shares VP Bond Portfolio Class R Shares

2002

-

1,337

-

10.19

14

0.0%1

0.00%1

0.00%2

1.92%2

2001

-

-

-

-

-

0.0%

0.00%

0.00%

0.00%

ING Partners Van Kampen Comstock Portfolio Initial Class

2002

-

2,571

-

9.20

24

0.0%1

0.00%1

0.00%2

-8.00%2

2001

-

-

-

-

-

0.0%

0.00%

0.00%

0.00%

ING Partners UBS Tactical Asset Allocation Portfolio Initial Class

2002

-

468

-

9.13

4

0.0%1

0.00%1

0.00%2

-8.75%2

2001

-

-

-

-

-

0.0%

0.00%

0.00%

0.00%

ING VP Index Plus LargeCap Portfolio Class R Shares

2002

-

0

-

9.20

-

0.0%1

0.00%1

0.00%2

-7.96%2

2001

-

-

-

-

-

0.0%

0.00%

0.00%

0.00%

ING VP MidCap Portfolio Class R Shares

2002

-

432

-

9.18

4

0.0%1

0.00%1

0.00%2

-8.24%2

2001

-

-

-

-

-

0.0%

0.00%

0.00%

0.00%

ING Index Plus Small Cap Portfolio Class R Shares

2002

-

1,912

-

9.14

17

0.0%1

0.00%1

0.00%2

-8.62%2

2001

-

-

-

-

-

0.0%

0.00%

0.00%

0.00%

ING VP Growth Opportunities Portfolio Class R Shares

2002

-

564,625

-

4.56

2,574

0.0%1

0.00%1

0.00%2

-16.97%2

2001

-

473,536

-

5.49

2,600

0.0%

0.00%

0.00%

-38.56%


1

Annualized


S-28

2

Total Return not annualized

 

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, Continued
(Unaudited)

 

6.

Unit Values, continued:
 

Net Assets

  


Select*Life I Units

Select*Life Series 2000 Units

Select*Life I Unit Value

Select*Life Series 2000 Unit Value



(000's)



Expense Ratio

Investment Income Ratio

Select*Life I Total Return

Select*Life
Series 2000 Total Return

ING VP Growth + Value Portfolio Class R Shares

2002

95,278

1,238,782

11.57

12.03

$16,008

0.0% to 0.8%1

0.00%1

-18.80%2

-18.48%2

2001

96,090

1,132,809

14.25

14.76

18,089

0.0% to 0.8%

0.00%

-31.54%

-30.99%

ING VP High Yield Bond Portfolio Class R Shares

2002

7,145

157,752

8.46

8.80

1,449

0.0% to 0.8%1

5.43%1

-2.74%2

-2.36%2

2001

5,495

130,091

8.70

9.01

1,220

0.0% to 0.8%

9.62%

-0.12%

0.69%

ING VP International Value Portfolio Class R Shares

2002

48,332

609,807

15.33

15.94

10,461

0.0% to 0.8%1

0.38%1

-2.06%2

-1.67%2

2001

43,288

439,714

15.65

16.21

7,806

0.0% to 0.8%

1.57%

-12.38%

-11.67%

ING VP MagnaCap Portfolio Class R Shares

2002

-

115,508

-

8.28

956

0.0%1

0.35%1

0.00%2

-9.04%2

2001

-

55,290

-

9.10

503

0.0%

1.38%

0.00%

-10.44%

ING VP MidCap Opportunities Portfolio Class R Shares

2002

-

258,944

-

5.26

1,362

0.0%1

0.00%1

0.00%2

-13.51%2

2001

-

215,901

-

6.08

1,313

0.0%

0.00%

0.00%

-32.92%

ING VP Research Enhanced Index Portfolio Class R Shares

2002

5,005

190,286

7.17

10.36

2,006.00

0.0% to 0.8%1

0.09%1

-13.07%2

-12.73%2

2001

5,285

182,379

8.25

11.87

2,208

0.0% to 0.8%

0.57%

-12.94%

-12.23%

ING VP SmallCap Opportunities Portfolio Class R Shares

2002

85,183

870,640

14.95

23.94

22,116

0.0%1

0.00%1

-26.56%2

-26.27%2

2001

80,386

775,725

20.36

32.47

26,824

0.0%

0.00%

-29.73%

-29.15%

Janus Aspen Series Aggressive Growth Portfolio

2002

231,981

2,091,400

10.63

11.06

25,593

0.0% to 0.8%1

0.00%1

-19.56%2

-19.24%2

200

235,336

2,000,203

13.22

13.69

30,499

0.0% to 0.8%

0.00%

-39.94%

-39.45%

Janus Aspen Series Growth Portfolio

2002

139,579

2,253,344

10.39

10.80

25,789

0.0% to 0.8%1

0.00%1

-15.93%2

-15.59%2

2001

142,922

2,191,551

12.35

12.80

29,811

0.0% to 0.8%

0.07%

-25.34%

-24.73%

Janus Aspen Series International Growth Portfolio

2002

88,979

1,639,839

11.23

11.68

20,145

0.0% to 0.8%1

0.47%1

-12.38%2

-12.03%2

2001

95,020

1,306,295

12.81

13.27

18,555

0.0% to 0.8%

1.15%

-23.85%

-23.23%

Janus Aspen Series Worldwide Growth Portfolio

2002

343,427

3,767,133

11.41

11.86

48,608

0.0% to 0.8%1

0.36%1

-13.37%2

-13.03%2

2001

344,914

3,608,054

13.17

13.64

53,757

0.0% to 0.8%

0.50%

-23.06

-22.44%



1

Annualized


S-29

2

Total Return not annualized

 

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, Continued

(Unaudited)

6.

Unit Values, continued:
 

Net Assets

  


Select*Life I Units

Select*Life Series 2000 Units

Select*Life I Unit Value

Select*Life Series 2000 Unit Value



(000's)



Expense Ratio

Investment Income Ratio

Select*Life I Total Return

Select*Life
Series 2000 Total Return

Neuberger Berman AMT Limited Maturity Bond Portfolio

2002

28,663

739,786

12.38

12.88

$9,882

0.0% to 0.8%1

6.99%1

1.66%2

2.06%2

2001

22,435

571,340

12.18

12.62

7,482

0.0% to 0.8%

4.77%

7.91%

8.78%

Neuberger Berman AMT Partners Portfolio

2002

53,024

844,521

9.80

10.19

9,128

0.0% to 0.8%1

0.48%1

-10.19%2

-9.84%2

2001

51,754

790,593

10.91

11.31

9,503

0.0% to 0.8%

0.36%

-3.61%

-2.83%

Neuberger Berman AMT Socially Responsive Portfolio

2002

-

74,458

-

9.48

706

0.0%1

0.00%1

0.00%2

-7.05%2

2001

-

60,865

-

10.20

621

0.0%

0.00%

0.00%

-3.58%

OCC Accumulation Trust Equity Portfolio

2002

22,168

382,145

10.88

11.31

4,565

0.0% to 0.8%1

0.99%1

-10.60%2

-10.25%2

2001

28,645

339,236

12.17

12.61

4,625

0.0% to 0.8%

0.50%

-7.76%

-7.02%

OCC Accumulation Trust Global Equity Portfolio

2002

16,643

129,802

11.00

11.44

1,669

0.0% to 0.8%1

0.44%1

-7.41%2

-7.04%2

2001

16,193

104,513

11.88

12.31

1,479

0.0% to 0.8%

0.00%

-14.51%

-13.82%

OCC Accumulation Trust Managed Portfolio

2002

58,651

748,078

10.58

11.00

8,849

0.0% to 0.8%1

2.11%1

-8.27%2

-7.90%2

2001

55,127

608,572

11.53

11.94

7,904

0.0% to 0.8%

2.02%

-5.67%

-4.91%

OCC Accumulation Trust Small Cap Portfolio

2002

76,641

896,179

13.64

14.19

13,759

0.0% to 0.8%1

0.10%1

-1.20%2

-0.81%2

2001

59,463

711,549

13.80

14.30

10,997

0.0% to 0.8%

0.61%

7.46%

8.33%

Pioneer Variable Contract Trust Mid-Cap Value VCT Portfolio Class 1

2002

-

6,194

-

9.27

57

0.0%1

0.00%1

0.00%2

-7.26%2

2001

-

-

-

-

-

0.0%

0.00%

0.00%

-

Pioneer Variable Contract Trust Small Cap Value VCT Portfolio Class 1

2002

-

2,832

-

9.38

27

0.0%1

100.00%1

0.00%2

-6.18%2

2001

-

-

-

-

-

0.0%

0.00%

0.00%

-

Putnam VT Asia Pacific Growth Fund -- Class IA Shares

2002

-

168,155

-

8.30

1,396

0.0%1

0.73%1

0.00%2

4.59%2

2001

-

180,557

-

7.94

1,433

0.0%

0.00%

0.00%

-23.76%

Putnam VT Diversified Income Fund -- Class IA Shares

2002

2,679

80,879

13.70

14.07

1,174

0.0% to 0.8%1

8.06%1

1.08%2

1.48%2

2001

2,862

87,212

13.55

13.86

1,248

0.0% to 0.8%

7.61%

2.99%

3.82%


1

Annualized


S-30

2

Total Return not annualized

 

RELIASTAR SELECTH LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, Continued

(Unaudited)

6.

Unit Values, continued:
 

Net Assets

  


Select*Life I Units

Select*Life Series 2000 Units

Select*Life I Unit Value

Select*Life Series 2000 Unit Value



(000's)



Expense Ratio

Investment Income Ratio

Select*Life I Total Return

Select*Life
Series 2000 Total Return

Putnam VT Growth and Income Fund -- Class IA Shares

2002

109,553

1,697,473

21.43

22.43

$40,414

0.0% to 0.8%1

1.58%1

-9.36%2

-9.00%2

2001

108,295

1,662,628

23.65

24.64

43,533

0.0% to 0.8%

1.63%

-6.92%

-6.16%

Putnam VT New Opportunities Fund -- Class IA Shares

2002

-

1,949,867

-

15.74

30,683

0.0%1

0.00%1

0.00%2

-21.12%2

2001

-

1,916,546

-

19.95

38,232

0.0%

0.00%

0.00%

-29.99%

Putnam VT Small Cap Value Fund -- Class IA Shares

2002

-

263,107

-

11.34

2,984

0.0%1

0.86%1

0.00%2

3.04%2

2001

-

108,916

-

11.01

1,199

0.0%

0.00%

0.00%

-10.07%

Putnam VT Utilities Growth and Income Fund -- Class IA Shares

2002

5,766

89,431

15.67

16.05

1,525

0.0% to 0.8%1

2.42%1

-15.81%2

-15.48%2

2001

6,118

94,898

18.61

18.98

1,915

0.0% to 0.8%

3.26%

-22.77%

-22.15%

Putnam VT Voyager Fund -- Class IA Shares

2002

262,521

3,663,535

21.21

21.83

85,537

0.0% to 0.8%1

0.70%1

-16.91%2

-16.58%2

2001

261,914

3,634,843

25.52

26.17

101,802

0.0% to 0.8%

0.11%

-22.87%

-22.24%



















1

Annualized


S-31

2

Total Return not annualized

 

RELIASTAR LIFE INSURANCE COMPANY
FINANCIAL STATEMENTS -- STATUTORY BASIS

Years ended December 31, 2001 and 2000
 

CONTENTS

Report of Independent Auditors

F-2

Audited Financial Statements

  
   

Balance Sheets -- Statutory Basis

F-4

Statements of Operations -- Statutory Basis

F-6

Statements of Changes in Capital and Surplus -- Statutory Basis

F-7

Statements of Cash Flows -- Statutory Basis

F-8

Notes to Financial Statements -- Statutory Basis

F-10




























F-1
 

Report of Independent Auditors
 

Board of Directors and Shareholder

ReliaStar Life Insurance Company

Minneapolis, Minnesota
 

We have audited the accompanying statutory-basis balance sheets of ReliaStar Life Insurance Company (an indirect, wholly-owned subsidiary of ING America Insurance Holdings, Inc.) as of December 31, 2000 and 2001, and the related statutory-basis statements of operations, changes in capital and surplus, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
 

We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.
 

As described in Note 1 to the financial statements, the Company presents its financial statements in conformity with accounting practices prescribed or permitted by the Minnesota Department of Commerce, which practices differ from accounting principles generally accepted in the United States. The variances between such practices and accounting principles generally accepted in the United States are also described in Note 1. The effects on the financial statements of these variances are not reasonably determinable but are presumed to be material.
 

In our opinion, because of the effects of the matters discussed in the preceding paragraph, the financial statements referred to above do not present fairly, in conformity with accounting principles generally accepted in the United States, the financial position of Reliastar Life Insurance Company as of December 31, 2001 and 2000, or the results of its operations or its cash flows for the years then ended.












F-2

 

However, in our opinion the financial statements referred to above present fairly, in all material respects, the financial position of Reliastar Life Insurance Company at December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended, in conformity with accounting practices prescribed or permitted by the Insurance Department of the State of Minnesota.

As discussed in Note 3 to the financial statements, in 2001 Reliastar Life Insurance Company changed various accounting policies to be in accordance with the revised NAIC Accounting Practices and Procedures Manual, as adopted by the Insurance Department of the State of Minnesota.
 

/s/ Ernst & Young LLP
 

March 29, 2002
 
































F-3

Reliastar Life Insurance Company

(A Wholly Owned Subsidiary of Reliastar Financial Corp.)
 

Balance Sheets - Statutory Basis
 
 
 

June 30

December 31
 

2002

2001

2000
 

(Unaudited)

(In Millions)

Assets

 		     

Bonds

$5,345

$4,956

$4,464

Stocks

917

860

783

Mortgage loans on real estate

865

794

575

Real estate (less encumbrances: 2001, $0; 2000, $0)

98

101

107

Policy loans

262

263

260

Cash on hand and on deposit

85

130

11

Short-term investments

-

138

56

Other invested assets

239

92

71

Total cash and invested assets

7,811

7,334

6,327
       

Reinsurance balances recoverable

63

87

73

Life insurance premiums and annuity Considerations deferred and uncollected


87


83


123

Accident and health premiums due and unpaid

26

36

104

Transfers from separate account due and accrued

175

156

294

Investment income due and accrued

98

83

85

Federal income tax receivable (including $46 admitted deferred tax asset at June 30; $47 at December 31, 2001)



46



87



61

Other admitted assets

117

97

108

Separate account assets

3,442

3,973

4,501
       
       
       
       
       
       
       

Total admitted assets

$11,865

$11,936

$11,676
       



F-4

 

June 30

December 31
 

2002

2001

2000
 

(Unaudited)

(In Millions)

Liabilities and capital and surplus

 		     

Liabilities:

 		     

Aggregate reserves for policies and contracts

$4,655

$4,625

$4,310

Accumulations and deposit fund liabilities

646

606

493

Policy and contract claims

394

502

489

Policyholders' dividends

19

19

20

Other policy and contract liabilities

49

63

62
 

5,763

5,815

5,374

Commissions payable

41

47

74

General expenses due or accrued

39

48

60

Taxes, licenses, and fees due or accrued, excluding federal income taxes


7


12


10

Unearned investment income

8

8

8

Interest maintenance reserve

_

11

2

Asset valuation reserve

70

65

66

Indebtedness to related parties

122

51

-

Other liabilities

1,180

724

405

Separate account liabilities

3,439

3,970

4,498

Total liabilities

10,669

10,751

10,497
       

Capital and surplus:

 		     

Common capital stock

3

3

3

Preferred capital stock ($100,000 at June 30, 2002; December 31, 2001 and 2000)


-


-


-

Surplus note

100

100

100

Gross paid in and contributed surplus

957

957

820

Unassigned surplus

136

125

256

Less treasury stock - preferred stock
(($100,000) at June 30, 2002; December 31, 2001 and 2000)


-


-


-

Total capital and surplus

1,196

1,185

1,179

Total liabilities and capital and surplus

$11,865

$11,936

$11,676

See accompanying notes.

F-5

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Statements of Operations - Statutory Basis
 
 

June 30

December 31
 

2002

2001

2000
 

(Unaudited)

(In Millions)

Premiums and other revenues

 		   

Premiums and annuity considerations

$865

$1,797

$1,861

Considerations for supplementary contracts and dividend accumulations


1


2


2

Net investment income

241

470

414

Separate account fee revenue

5

14

113

Other income

34

71

1,052

Total revenues

1,146

2,354

3,442

Benefits paid or provided

 		     

Death benefits

285

761

682

Annuity benefits

46

85

70

Disability and accident and health benefits

185

244

301

Surrender benefits and other fund withdrawals

208

457

1,260

Payments on supplementary contracts and of dividend accumulations


1


2


2

Change in reserve for policies and contracts

73

424

155

Other

6

16

10

Net transfers to separate accounts

17

158

302

Total benefits paid or provided

821

2,147

2,782

Insurance expenses

 		     

Commissions

104

233

283

General insurance expenses

142

244

241

Insurance taxes, licenses and fees, excluding federal income taxes

16

35

34

Other

25

26

336

Total benefits and expenses

1,108

2,685

3,676

Net Gain /(Loss) from operations before dividends to policyholders and federal income taxes


38


(331)


(234)

Dividends to policyholders

12

24

25

Net Gain/(Loss) from operations before federal income taxes

26

(355)

(259)

Federal income taxes

8

(125)

(60)

Net Gain /(Loss) from operations before realized capital losses

18

(230)

(199)

Net realized capital losses, net of tax ($30; 2001 - $11; 2000 - $(10)


(43)


(22)


(44)

Net loss

$(25)

$(252)

$(243)

See accompanying notes.

F-6

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Statements of Changes in Capital and Surplus - Statutory Basis
 
 
 


June 30

Year ended
December 31
 

2002

2001

2000
 

(Unaudited)

(In Millions)
       

Capital and surplus, beginning of year

$1,185

$1,179

$1,154

Net loss

(25)

(252)

(243)

Dividends to Parent

-

-

(61)

Change in net unrealized capital gains and losses

(20)

96

23

Change in non-admitted assets and related items

(4)

(33)

(1)

Change in liability for reinsurance in unauthorized companies


(4)


6


(25)

Transfer of prepaid pension asset

-

(133)

-

Change in accounting principle, net of tax

-

147

-

Change in net deferred income tax

11

29

-

Change in reserve related to of change in valuation basis

-

-

(3)

Decrease in asset valuation reserve

(5)

1

20

Capital contribution from Parent

-

137

314

Other changes in capital and surplus, net

58

8

1

Capital and surplus, end of year

$1,196

$1,185

$1,179




See accompanying notes.

F-7

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Statements of Cash Flows - Statutory Basis
 
 
 


June 30

Year ended
December 31
 

2002

2001

2000
 

(Unaudited)

(In Millions)
       

Operating activities

 		     

Premiums and annuity considerations

$855

$1,886

$1,882

Charges and fees for deposit-type funds

41

(64)

-

Considerations for supplementary contracts and dividend accumulations


1


2


2

Commission and expense allowances on reinsurance ceded

22

42

52

Net investment income

266

434

408

Fees from separate accounts

5

14

116

Other income

6

14

707

Life and accident and health claims

(553)

(1,005)

(796)

Surrender benefits and other fund withdrawals

(208)

(457)

(1,260)

Other benefits to policyholders

(54)

(106)

(92)

Commissions, other expenses and taxes

(303)

(591)

(531)

Net transfers to separate accounts

(30)

(10)

(341)

Dividends to policyholders

(12)

(25)

(23)

Federal income taxes

88

146

(43)

Net cash from operations

124

280

81















F-8

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Statements of Cash Flows - Statutory Basis

(continued)
 
 
 

June 30

Year ended December 31
 

2002

2001

2000
 

(Unaudited)

(In Millions)
       

Investing activities

      

Proceeds from investments sold, matured or repaid:

      

Bonds

$3,448

$4,629

$1,512

Stocks

-

56

1,051

Mortgage loans

36

49

265

Real estate

6

3

11

Other invested assets

3

10

14

Miscellaneous proceeds

-

65

1

Taxes on capital gains and losses

(30)

(11)

9

Total investment proceeds

3,463

4,801

2,863
       

Cost of investments acquired:

      

Bonds

(3,910)

(5,127)

(2,067)

Stocks

(66)

(49)

(1,063)

Mortgage loans

(106)

(268)

(57)

Real estate

(1)

(1)

(13)

Other invested assets

(10)

(25)

(29)

Miscellaneous applications

(18)

-

(19)

Total investments acquired

(4,111)

(5,470)

(3,248)
       

Net change in policy loans and premium notes

1

(2)

(10)

Net cash used for investments

(647)

(671)

(395)
       

Financing and miscellaneous activities

 		     

Dividends to Parent

-

-

(61)

Capital contribution from Parent

22

137

314

Borrowed money

449

225

74

Other sources, net

(131)

230

(52)

Net cash from financing and miscellaneous activities

340

592

275
       

Net change in cash and short-term investments

(183)

201

(39)

Cash and short-term investments at beginning of year

268

67

106

Cash and short-term investments at end of year

$85

$268

$67


See accompanying notes.

F-9

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

December 31, 2001
 
 

1.

Nature of Operations and Basis of Financial Reporting
 

ReliaStar Life Insurance Company (the Company) is principally engaged in the business of providing individual life insurance and annuities; employee benefit products and services; retirement plans; and life and health reinsurance. The Company operates primarily in the United States and is authorized to conduct business in all states, except New York.
 

All outstanding shares of the Company are owned by ReliaStar Financial Corp. (ReliaStar), a holding and management company domiciled in Delaware. ReliaStar's ultimate parent is ING Groep, N.V. (ING), a global financial services company based in Amsterdam, the Netherlands. ING acquired ReliaStar in September 2000. The Company owns at December 31, 2001, directly and indirectly, all capital stock of the following companies: Northern Life Insurance Company, Norlic, Inc., Security-Connecticut Life Insurance Company, ReliaStar Life Insurance Company of New York, ReliaStar Reinsurance Group (UK), Ltd. and NWNL Benefits Corporation.
 

Use of Estimates
 

The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
 

Basis of Presentation
 

The accompanying financial statements of the Company have been prepared in conformity with accounting practices prescribed or permitted by the Insurance Department of the State of Minnesota, whose practices differ from accounting principles generally accepted in the United States ("GAAP"). The more significant of these differences are as follows:







F-10

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

1.

Nature of Operations and Basis of Financial Reporting (continued)
 

Investments
 

Investments in bonds and mandatorily redeemable preferred stocks are reported at amortized cost or market value based on the National Association of Insurance Commissioners ("NAIC") rating; for GAAP, such fixed maturity investments are designated at purchase as held-to-maturity, trading or available-for-sale. Held-to-maturity investments are reported at amortized cost, and the remaining fixed maturity investments are reported at fair value with unrealized capital gains and losses reported in operations for those designated as trading and as a component of other comprehensive income in stockholder's equity for those designated as available-for-sale.
 

Derivative instruments that meet the criteria of an effective hedge are valued and reported in a manner that is consistent with the hedged asset or liability. Embedded derivatives are not accounted for separately from the host contract. Under GAAP, the effective and ineffective portions of a single hedge are accounted for separately, an embedded derivative within a contract that is not clearly and closely related to the economic characteristics and risk of the host contract is accounted for separately from the host contract and valued and reported at fair value, and the change in fair value for cash flow hedges is credited or charged directly to a separate component of shareholders' equity rather than to income as required for fair value hedges.
 

For structured securities, when a negative yield results from a revaluation based on new prepayment assumptions (i.e., undiscounted cash flows are less than current book value), an other than temporary impairment is considered to have occurred, and the asset is written down to the value of the undiscounted cash flows. For GAAP, assets are re-evaluated based on the discounted cash flows using a current market rate. Impairments are recognized when there has been an adverse change in cash flows and the fair value is less than book value. The asset is then written down to fair value.











F-11

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

December 31, 2001
 

1.

Nature of Operations and Basis of Financial Reporting (continued)
 

Valuation Allowances
 

The asset valuation reserve (AVR) is determined by an NAIC-prescribed formula and is reported as a liability rather than as a valuation allowance or an appropriation of surplus. The change in AVR is reported directly to unassigned surplus.

 

Under a formula prescribed by the NAIC, the Company defers the portion of realized capital gains and losses on sales of fixed-income investments, principally bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity based on groupings of individual securities sold in five-year bands. The net deferral is reported as the interest maintenance reserve (IMR) in the accompanying balance sheets.
 

Realized gains and losses on investments are reported in operations net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses are reported in the statements of operations on a pretax basis in the period that the asset giving rise to the gain or loss is sold and valuation allowances are provided when there has been a decline in value deemed other than temporary, in which case the provision for such declines is charged to income.
 

Valuation allowances, if necessary, are established for mortgage loans based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. Prior to January 1, 2001, valuation allowances were based on the difference between the unpaid loan balance and the estimated fair value of the underlying real estate. Under GAAP, such allowances are based on the present value of expected future cash flows discounted at the loan's effective interest rate or, if foreclosure is probable, on the estimated fair value of the collateral.
 

The initial valuation allowance and subsequent changes in the allowance for mortgage loans as a result of a temporary impairment are charged or credited directly to unassigned surplus, rather than being included as a component of earnings as would be required under GAAP.




F-12

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

1.

Nature of Operations and Basis of Financial Reporting (continued)
 

Separate Accounts
 

The Company operates separate accounts. The assets and liabilities of the separate accounts are primarily related to variable annuity, variable universal life and 401(k) contracts and represent policyholder-directed funds that are separately administered. The assets (primarily investments) and liabilities (principally to contractholders) of each account are clearly identifiable and distinguishable from other assets and liabilities of the Company. The assets and liabilities of these accounts are carried at fair value.
 

Reserves related to the Company's mortality risk associated with these policies are included in life and annuity reserves. The operations of the separate accounts are not included in the accompanying statements of operations.
 

Reinsurance
 

For business ceded to unauthorized reinsurers, statutory accounting practices require that reinsurance credits permitted by the treaty be recorded as an offsetting liability and charged against unassigned surplus. Such treatment is not required by GAAP. Statutory income recognized on certain reinsurance treaties representing financing arrangements is not recognized on a GAAP basis.
 

Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets as required under GAAP.
 

Commissions allowed by reinsurers on business ceded are reported as income when received rather than being deferred and amortized with deferred policy acquisition costs as required under GAAP.












F-13

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

1.

Nature of Operations and Basis of Financial Reporting (continued)
 

Benefit and Contract Reserves
 

Life policy and contract reserves under statutory accounting practices are calculated based upon both the net level premium and Commissioners' Reserve Valuation methods using statutory rates for mortality and interest. GAAP requires that policy reserves for traditional products be based upon the net level premium method utilizing reasonably conservative estimates of mortality, interest, and withdrawals prevailing when the policies were sold. For interest-sensitive products, the GAAP policy reserve is equal to the policy fund balance plus an unearned revenue reserve which reflects the unamortized balance of early year policy loads over renewal year policy loads.
 

Policy Acquisition Costs
 

The costs of acquiring and renewing business are expensed when incurred. Under GAAP, acquisition costs related to traditional life insurance, to the extent recoverable from future policy revenues, are deferred and amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves. For universal life insurance and investment products, acquisition costs are amortized generally in proportion to the present value of expected gross margins from surrender charges and investment, mortality, and expense margins.
 

Non-Admitted Assets
 

Certain assets designated as "nonadmitted," principally past-due agents' balances, deferred federal income taxes, aged reinsurance receivable and other intangible assets, and other assets not specifically identified as an admitted asset within the Accounting Practices and Procedures Manual are excluded from the accompanying balance sheets and are charged directly to unassigned surplus. Prior to January 1, 2001, nonadmitted assets included certain assets designated as nonadmitted. Under GAAP, such assets are included in the balance sheet.








F-14

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

1.

Nature of Operations and Basis of Financial Reporting (continued)
 

Participation Fund Account
 

On January 3, 1989, the Commissioner of Commerce of the State of Minnesota approved a Plan of Conversion and Reorganization (the Plan) which provided, among other things, for the conversion of the Company from a combined stock and mutual life insurance company to a stock life insurance company.
 

The Plan provided for the establishment of a Participation Fund Account (PFA) for the benefit of certain participating individual life insurance policies and annuities issued by the Company prior to the effective date of the Plan. Under the terms of the PFA, the insurance liabilities and assets (approximately $300 million as of December 31, 2001) with respect to such policies are segregated in the accounting records of the Company to assure the continuation of policyholder dividend practices.
 

Statements of Cash Flows
 

Cash and short-term investments in the statements of cash flows represent cash balances and investments with initial maturities of one year or less. Under GAAP, the corresponding caption of cash and cash equivalents include cash balances and investments with initial maturities of three months or less.
 

Reconciliation to GAAP
 

The effects of the preceding variances from GAAP on the accompanying statutory basis financial statements have not been determined, but are presumed to be material.
 

Other significant accounting practices are as follows:











F-15

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

1.

Nature of Operations and Basis of Financial Reporting (continued)
 

Investments
 

Bonds, preferred stocks, common stocks, short-term investments and derivative instruments are stated at values prescribed by the NAIC, as follows:
 

Bonds not backed by other loans are principally stated at amortized cost using the interest method.
 

Single class and multi-class mortgage-backed/asset-backed securities are valued at amortized cost using the interest method including anticipated prepayments. Prepayment assumptions are obtained from dealer surveys or internal estimates and are based on the current interest rate and economic environment. The retrospective adjustment method is used to value all such securities except for higher-risk asset-backed securities, which are valued using the prospective method.
 

Redeemable preferred stocks are reported at amortized cost or the lower of amortized cost or market value and nonredeemable preferred stocks are reported at market value or the lower of cost or market value as determined by the Securities Valuation Office of the NAIC ("SVO").
 

Common stocks are reported at market value as determined by the SVO and the related unrealized capital gains/(losses) are reported in unassigned surplus with any adjustment for federal income taxes. Prior to January 1, 2001, the related net unrealized capital gains/(losses) were reported in unassigned surplus without any adjustment for federal income taxes.














F-16

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

1.

Nature of Operations and Basis of Financial Reporting (continued)
 

Investments (continued)
 

The Company uses interest rate swaps, options and certain other derivatives as part of its overall interest rate risk management strategy for certain life insurance and annuity products. As the Company only uses derivatives for hedging purposes, the Company values all derivative instruments on a consistent basis with the hedged item. Upon termination, gains and losses on those instruments are included in the carrying values of the underlying hedged items and are amortized over the remaining lives of the hedged items as adjustments to investment income or benefits from the hedged items. Any unamortized gains or losses are recognized when the underlying hedged items are sold.
 

Interest rate swap contracts are used to convert the interest rate characteristics (fixed or variable) of certain investments to match those of the related insurance liabilities that the investments are supporting. The net interest effect of such swap transactions is reported as an adjustment of interest income from the hedged items as insurred.
 

Mortgage loans are reported at unpaid principal balances, less allowance for impairments.
 

Policy loans are reported at unpaid principal balances.
 

Other real estate is reported at the lower of depreciated cost or fair value. Depreciation is calculated on a straight-line basis over the estimated useful lives of the properties.
 

For reverse repurchase agreements, Company policies require a minimum of 102% of the fair value of securities purchased under reverse repurchase agreements to be maintained as collateral. Cash collateral received is invested in short-term investments and the offsetting collateral liability is included in miscellaneous liabilities. Dollar roll transactions are accounted for as collateral borrowings, where the amount borrowed is equal to the sales price of the underlying securities.








F-17

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

1.

Nature of Operations and Basis of Financial Reporting (continued)
 

Investments (continued)
 

Short-term investments are reported at cost. Short-term investments include investments with maturities of less than one year at the date of acquisition.
 

Other invested assets are reported at amortized cost using the effective interest method. Other invested assets primarily consist of residual collateralized mortgage obligations and partnership interests.
 

Realized capital gains and losses are determined using the specific identification basis. Preferred stocks in good standing are valued at cost, which approximates market value.
 

Investment real estate and buildings owned and occupied by the Company are carried at cost less accumulated depreciation and encumbrances, or market value if lower.
 

Real estate acquired in satisfaction of debt is stated at the lower of the appraised value of the asset foreclosed, or book value of the mortgage at the date of foreclosure.
 

Cash on hand includes cash equivalents. Cash equivalents are short-term investments that are both readily convertible to cash and have an original maturity date of three months or less. Short-term investments are carried at amortized cost, which approximates market value.
 

Subsidiaries of the Company are accounted for using the equity method of accounting. Insurance subsidiaries are carried at their statutory book value and non-insurance subsidiaries are carried at their book value calculated in accordance with generally accepted accounting principles. The reported net income of the Company's subsidiaries is included in investment income, while all other changes in the net assets of subsidiaries are included in unrealized gains and losses. The assets and liabilities of the Company's subsidiaries are not consolidated with the assets and liabilities of the Company.








F-18

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

1.

Nature of Operations and Basis of Financial Reporting (continued)
 

Investments (continued)
 

The Company uses straight-line depreciation for all of its depreciable assets, with useful lives varying depending on the asset. For real estate subject to long-term leases, a depreciation method is used to result in accounting similar to direct financing leases whereby the excess of aggregate rentals over cost (reduced by estimated residual value) is recognized as investment income over the term of the lease at an approximately constant periodic rate of return.
 

Realized investment gains and losses on sales of securities are included in the determination of net income and are determined on the specific identification method. Unrealized investment gains and losses are accounted for as direct increases or decreases in surplus. Income tax effects of unrealized gains and losses are not recognized. Realized gains and losses on expired futures contracts have been deferred and are being amortized over the life of the asset or liability the future contracts hedged.
 

Due and accrued income is excluded from investment income on mortgage loans, bonds and short-term investments where interest is past due more than 90 days. The total amount excluded at December 31, 2001 and 2000 was $0 and $3 million, respectively.


















F-19

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

1.

Nature of Operations and Basis of Financial Reporting (continued)
 

Premium and Annuity Considerations Deferred and Uncollected
 

Deferred and uncollected life insurance premiums and annuity considerations at December 31, 2001, were as follows:
 
 

Gross

Net of Loading
     

Industrial

$-

$-

Ordinary new business

5

5

Ordinary renewal

23

25

Credit Life

2

2

Group Life

70

59

Group Annuity

(8)

(8)

Total

$93

$83
 

Aggregate Reserves for Policies and Contracts
 

Reserves for future policy and contract benefits for life insurance are computed by the net level premium and preliminary term and other modified reserve methods on the basis of interest rates and mortality assumptions prescribed by state regulatory authorities. Annuity reserves are computed using interest rates and mortality assumptions where needed as prescribed by state regulatory authorities. Waiver of premium reserves (group disabled life reserves) are determined using morbidity and termination assumptions primarily based on the 1970 Intercompany Group Disability Table, using an interest rate of 5.25% to 6.25% for disablements. Reserves for long-term disability policies are primarily based on the 1981 Company Termination Table, using an interest rate of 5.5% to 10.3% for disablements prior to 1993 and the 1987 CGDT using an interest rate of 5.5% to 6.25% for disablements subsequent to 1992. Liabilities for unpaid accident and health claims are estimates of the ultimate net cost of all reported and unreported claims not yet settled. These reserves are estimated using actuarial analyses and case basis evaluations.







F-20

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

1.

Nature of Operations and Basis of Financial Reporting (continued)
 

Aggregate Reserves for Policies and Contracts (continued)
 

The Company waives deduction of deferred fractional premiums upon the death of the insured and returns any portion of the final premium beyond the date of death. Surrender values are not promised in excess of the legally computed reserves.
 

All substandard policies except Adjustable Life and Universal Life are valued as standard plus an amount determined by valuation representing the excess amount of the multiple table reserves over the standard reserves. All Adjustable Life and Universal Life policies are valued directly on a multiple table basis.
 

As of December 31, 2001, the Company had insurance in force of $2 billion for which the gross premiums are less than the net premiums according to the standard valuation set by the State of Minnesota. Reserves to cover this insurance totaled $14 million at December 31, 2001.
 

Of the total annuity reserves and deposit fund liabilities at December 31, 2001, approximately 16% were subject to discretionary withdrawal - with adjustment; approximately 18% were subject to discretionary withdrawal - without adjustment; approximately 9% were not subject to discretionary withdrawal provisions; and approximately 57% were related to "market value" reserves in separate accounts without investment guarantees whose surrender values vary with the market value of the invested assets supporting the reserves.
 

Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the underlying policies and the terms of the reinsurance contract.












F-21

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

1.

Nature of Operations and Basis of Financial Reporting (continued)
 

Deferred Taxes
 

Prior to January 1, 2001, deferred federal income taxes were not provided for differences between the financial statement amounts and the tax bases of assets and liabilities. Starting in 2001, deferred tax assets are provided for and admitted to an amount determined under a standard formula. This formula considers the amount of differences that will reverse in the subsequent year, taxes paid in prior years that could be recovered through carrybacks, surplus limits and the amount of deferred tax liabilities available for offset. Any deferred tax assets not covered under the formula are non-admitted. Deferred taxes do not include any amounts for state taxes. Under GAAP, a deferred tax asset is recorded for the amount of gross deferred tax assets that are expected to be realized in future years and a valuation allowance is established for the portion that is not realizable.
 

Premium Revenue and Benefits to Policyholders
 

Premiums on life insurance and annuity contracts are generally recognized as revenue over the premium-paying period of the contract. Contract benefits are recognized over the life of the contract by providing reserves for future policy and contract benefits.
 

Costs of acquiring new business are charged to operating expenses when incurred.
 

Reclassifications
 

Certain prior year amounts in the ReliaStar Life Insurance Company's statutory basis financial statements have been reclassified to conform to the 2001 financial statement presentation.











F-22

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

2.

Permitted Statutory Basis Accounting Practices
 

The Company prepares statutory basis financial statements in accordance with accounting practices prescribed or permitted by the State of Minnesota Department of Insurance. "Prescribed" statutory accounting practices include state laws, regulations and general administrative rules, as well as a variety of publications of the NAIC. "Permitted" statutory accounting practices encompasses all accounting practices that are not prescribed; such practices may differ from state to state, and from company to company within a state, and may change in the future.
 

The Company is required to identify those significant accounting practices that are permitted, and obtain written approval of the practices from the State of Minnesota Insurance Department. As of December 31, 2001 and 2000, the Company had no such permitted accounting practices.
 

3.

Accounting Changes

The NAIC has revised the Accounting Practices and Procedures Manual in a process referred to as Codification. The revised manual was effective January 1, 2001. The State of Minnesota has adopted the provisions of the revised manual. The revised manual has changed, to some extent, prescribed statutory accounting practices and has resulted in changes to the accounting practices that the Company uses to prepare its statutory basis financial statements. The Company adopted the revised Accounting Practices and Procedures Manual on January 1, 2001.
 

Accounting changes adopted to conform to the provisions of the Accounting Practices and Procedures Manual are reported as changes in accounting principles. The cumulative effect of changes in accounting principles is reported as an adjustment to unassigned surplus in the period of the change in accounting principle. The cumulative effect is the difference between the amount of capital and surplus at the beginning of the year and the amount of capital and surplus that would have been reported at that date if the new accounting principles had been applied










F-23

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

3.

Accounting Changes (continued)
 

retroactively for all prior periods. As a result of these changes, the Company reported a change in accounting principle, as an adjustment that increased unassigned surplus approximately $147 million as of January 1, 2001.

 

Included in this total adjustment were adjustments to increase unassigned surplus $42 million related to net admitted deferred tax assets and approximately $120 million related to qualified pension plan assets which were subsequently non-admitted. Offsetting these increases was a $21 million adjustment to record liabilities for the Company's non-qualified pensions plans.

 

4.

Investments
 

Bonds
 

The statement value and estimated market values of investments in bonds by type of investment were as follows at December 31:
 
       

Estimated
 

Statement

Gross Unrealized

Market
 

Value

Gains

(Losses)

Value
 

(In Millions)

2001

 		       

United States Government and government agencies and authorities


$97


$2


$(1)


$98

States, municipalities and political subdivisions


$34


8


-


42

Foreign governments

68

6

(1)

73

Public utilities

189

6

(2)

194

Corporate Securities

2,213

74

(34)

2,253

Mortgage-backed/structured securities

2,355

63

(45)

2,373

Total

$4,956

$159

$(82)

$5,033




F-24

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

4.

Investments (continued)
 

Bonds (continued)
 
       

Estimated
 

Statement

Gross Unrealized

Market
 

Value

Gains

(Losses)

Value

2000

(In Millions)

United States Government and government agencies and authorities


$231


$12


$-


$243

States, municipalities and political subdivisions


8


-


-


8

Foreign governments

34

1

-

34

Public utilities

312

5

(3)

314

Corporate Securities

2,575

40

(44)

2,571

Mortgage-backed/structured securities

1,304

29

(45)

1,289

Total

$4,464

$87

$(92)

$4,459
 

At December 31, 2001 and 2000, bonds with an amortized cost of $83,604,000 and $54,797,000 respectively, were on deposit with various insurance departments to meet regulatory requirements.
 

The statement value and estimated market value of bonds, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
 

December 31, 2001
 

Amortized

Fair
 

Cost

Value
 

(In Millions)

Maturing in:

    

One year or less

$67

$69

One to Five years

952

979

Five to Ten years

1,170

1,190

Ten years or later

412

422

Mortgage-backed/structured securities

2,355

2,373

Total

$4,956

$5,033





F-25

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

4.

Investments (continued)
 

Bonds (continued)
 

The estimated market values for actively traded marketable bonds are determined based upon quoted market prices. The estimated market values for marketable bonds without an active market are obtained through several commercial pricing services, which provide the estimated market values. Estimated market values of privately placed bonds, which are not considered problems, are determined using a matrix-based pricing model. The model considers the current level of risk-free interest rates, current corporate spreads, credit quality of the issuer and cash flow characteristics of the security. Using this data, the model generates market values which the Company considers reflective of the estimated market value of each privately placed bond. Estimated market values for privately placed bonds which are considered problems are determined through consideration of factors such as the net worth of borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees and the Company's evaluation of the borrower's ability to compete in their relevant market.
 

At December 31, 2001, the largest industry concentration of the private placement portfolio was mortgage-backed/structured finance where 26% of the portfolio was invested, and the largest industry concentration of the marketable bond portfolio was mortgage-backed/structured finance, where 43% of the portfolio was invested.


















F-26

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

4.

Investments (continued)
 

Stocks
 

The cost and statement value of stocks were as follows:
 
 

2001

2000
 

(In Millions)

Unaffiliated:

    

Cost

$28

$30

Gross unrealized gains

-

-

Gross unrealized losses

(2)

(2)

Statement value

26

28

Affiliated - statement value

834

755

Total statement value

$860

$783
 

Mortgage Loans on Real Estate
 

The maximum and minimum lending rates for all mortgage loans issued during 2001 were 7.79% and 6.00%, respectively.
 

During 2001 and 2000, the Company did not reduce interest rates of outstanding mortgage loans.
 

The maximum percentage of any one loan to the value of security at the time of the loan was 74%. Fire insurance is required on all properties covered by mortgage loans at least equal to the excess of the loan over the maximum loan that would be permitted by law on the land without buildings. As of December 31, 2001, the Company held no mortgages with interest more than 180 days overdue.
 

At December 31, 2001, the largest geographic concentration of commercial mortgage loans was in the Pacific region of the United States, where approximately 28% of the commercial mortgage loan portfolio was invested.







F-27

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

4.

Investments (continued)
 

Investment Income
 

Investment income summarized by type of investment was as follows:
 
 

Year ended December 31
 

2001

2000
 

(In Millions)
     

Bonds

$378

$314

Common Stock-Affiliates

52

16

Mortgage Loans on Real Estate

49

58

Real Estate

28

25

Policy Loans

17

16

Short-Term Investments

1

5

Other

(1)

16

Gross Investment Income

524

450

Investment Expenses

54

36

Net investment income

$470

$414




















F-28

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

4.

Investments (continued)
 

Realized Investment Gains and Losses
 

Net realized capital gains (losses) were as follows:
 
 

Year ended December 31
 

2001

2000
 

(In Millions)

Bonds:

 		   

Gross gains

$33

$14

Gross losses

(20)

(63)

Mortgage loans on real estate

-

(9)

Other

(6)

(6)

Net pretax realized capital gains and losses

7

(64)

Income tax (expense) benefit

(11)

10

Net pretax realized capital gains and losses transferred to interest maintenance reserve (IMR)


(27)


15

Income tax expense (benefit) transferred to IMR

9

(5)

Net realized capital losses, net of tax

$(22)

(44)
 

Proceeds from the sale of bonds were $4.6 billion and $1.5 billion during 2001 and 2000, respectively.
 

As part of its investment strategy, the Company enters into dollar rolls transactions to increase its return on investments and improve liquidity. Dollar rolls involve the sale of securities and an agreement to repurchase substantially the same security as the security sold. Such borrowings averaged approximately $37 million during 2001 and were collateralized by investment in securities with fair values approximately equal to the loan value. The balance of dollar roll transactions at December 31, 2001 was $249 million. The primary risk associated with short








F-29

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

4.

Investments (continued)
 

Realized Investment Gains and Losses (continued)
 

term collateralized borrowings is that the counter party will be unable to perform under the terms of the contract. The Company's exposure is limited to the excess of the net replacement cost of the securities over the value of the short-term investments.
 

The Company participates in reverse repurchase transactions. Such transactions involve the sale of corporate securities to a major securities dealer and a simultaneous agreement to repurchase the same security in the near term. The proceeds are invested in new securities of intermediate duration. The terms of the reverse repurchase agreement call for payment of interest at a rate of between 1.80% and 2.26%. Amounts due related to reverse repurchase transactions as of December 31, 2001 were $37 million.
 

5.

Derivative Instruments
 

The Company has an established program prescribing the use of derivatives in its asset/liability management activity. The investment policy of the Company expressly precludes the use of such instruments for speculative purposes. The policy details permissible uses and instruments and contains accounting and management controls designed to assure compliance with these policies. The Company is not a party to leveraged derivatives.
 

The insurance liabilities of the Company are sensitive to changes in market interest rates. The Company has established procedures for evaluating these liabilities and structures investment asset portfolios with compatible characteristics. Investment assets are selected which provide yield, cash flow and interest rate sensitivities appropriate to support the insurance products.
 

The Company uses interest rate swaps and equity indexed call options as part of this asset/liability management program. The Company has acquired a significant amount of certain shorter duration investments, such as floating rate or adjustable rate investments. Acquisition of these assets shortens the duration of an asset portfolio. The Company uses interest rate swaps







F-30

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

5.

Derivative Instruments (continued)
 

to extend the duration of these portfolios as an alternative to purchasing longer duration investments. The equity indexed call options are based on the S&P 500 Index and are used to hedge the Company's equity indexed annuity product. On the termination date, the counterparty will make one payment to the Company based on the level of the index and strike price.
 

The Company is exposed to credit-related losses in the event of nonperformance by counterparties to derivative instruments, but it does not expect any counterparties to fail to meet their obligations, given their high credit ratings. In addition, the Company has established an issuer holder limitation program whereby the maximum credit exposure to a single issuer is established based upon the credit rating of the issuer and the structure of the investment. The positive market value of swap positions is included in the computation of the maximum issuer limitation.
 

The table below summarizes the Company's interest rate contracts included in other invested assets at December 31, 2001 and 2000 (in millions):
 
 

December 31, 2001
 

Notional

Carrying

Fair
 

Amount

Value

Value
   

Interest rate contracts:

      

Swaps

$360.0

$-

$28.5

Options owned

6.3

1.3

1.3

Total derivatives

$366.3

$1.3

$29.8












F-31

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

5.

Derivative Instruments (continued)
   
 

December 31, 2000
 

Notional

Carrying

Fair
 

Amount

Value

Value
   

Interest rate contracts:

      

Swaps

$155.0

$-

$3.2

Options owned

6.3

1.4

1.4

Total derivatives

$161.3

$1.4

$4.6
 

6.

Employee Benefit Plans
 

Defined Benefit Plan
 

The Company has defined benefit pension plans covering substantially all of its employees. The benefits are based on years of service and the employee's average annual compensation during the last five years of employment. The Company's funding and accounting policies are consistent with the funding requirements of Federal law and regulations. As of December 31, 2001, the qualified pension benefit plans of certain United States subsidiaries of ING America Insurance Holdings, including ReliaStar Life Insurance Company, were merged into one plan which will be recognized in ING's financial statements. As a result, the Company transferred their qualified pension assets and liabilities to ING North America Insurance corporation, an affiliate. In













F-32

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

6.

Employee Benefit Plans (continued)
 

Defined Benefit Plan (continued)
 

addition to pension benefits, the Company provides certain health care and life insurance benefits ("postretirement benefits") to retired employees through an unfunded postretirement benefit plan. A summary of assets, obligations, and assumptions of the Pension and Other Post Retirement Benefit Plans is as follows:

 
 

Pension Benefits

Other Benefits
 

2001

2000

2001

2000
 

(In Millions)

(In Millions)

Change in benefit obligation

 		       

Benefit obligation at beginning of year

$-

$ -

$14.2

$13.5

Adoption of Codification

228.8

-

-

-

Service cost

2.4

-

0.7

0.2

Interest cost

17.4

-

1.1

0.4

Contribution by plan participants

-

-

0.5

0.5

Actuarial gain (loss)

7.1

-

(4.6)

0.6

Benefits paid

(6.5)

-

(1.2)

(0.9)

Plan amendments

(0.2)

-

3.3

-

Business combinations, divestitures, curtailments, settlements and special termination benefits



(221.1)



-



1.0



-

Benefit obligation at end of year

$27.9

$ -

$15.0

$14.2











F-33

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

6.

Employee Benefit Plans (continued)
 

Defined Benefit Plan (continued)
 
 

Pension Benefits

Other Benefits
 

2001

2000

2001

2000
 

(In Millions)

(In Millions)

Change in plan assets

 		       

Fair value of plan assets at beginning of year


$-


$-


$-


$-

Adoption of Codification

327.5

-

-

-

Actual return on plan assets

(83.9)

-

-

-

Employer contribution

2.0

-

0.8

0.5

Plan participants' contributions

-

-

0.5

0.5

Benefits paid

(6.5)

  

(1.3)

(1.0)

Business combinations, divestitures and settlements


(239.1)


-


-


-

Fair value of plan assets at end of year

$-

$-

$-

$-


















F-34

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

6.

Employee Benefit Plans (continued)
 

Defined Benefit Plan (continued)
 
 

Pension Benefits

Other Benefits
 

2001

2000

2001

2000
 

(In Millions)

(In Millions)

Funded status

 		       

Funded status at December 31

$(27.9)

$-

$(15.0)

$(14.2)

Unamortized prior service cost

-

-

3.3

-

Unrecognized net gain or (loss)

-

-

(4.1)

0.6

Net amount recognized

$(27.9)

$ -

$(15.8)

$(13.6)
     

Upon the adoption of Codification, the pension benefits related to vested employees not previously recognized has been recorded as part of the cumulative effect of accounting change adjustment.
 

The pension benefits obligation for non-vested employees at December 31, 2001 and 2000 amounted to $0.1 million and $4.4 million, respectively. The other benefits obligation for non-vested employees at December 31, 2001 and 2000, amounted to $0 million and $3.1 million, respectively.

 
















F-35

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

6.

Employee Benefit Plans (continued)
 

Defined Benefit Plan (continued)
 
 

Pension Benefits

Other Benefits
 

2001

2000

2001

2000
 

(In Millions)

(In Millions)
         

Components of net periodic benefit cost:

 		       

Service cost

$2.4

  

$0.7

$0.2

Interest cost

17.4

  

1.1

0.4

Expected return on plan assets

(29.7)

-

-

-

Amortization of unrecognized transition obligation or transition asset



-



-



-



-

Amount of recognized gains and losses

-

-

-

-

Amount of prior service cost recognized


1.2


-


-


-

Amount of gain or loss recognized due to a settlement or curtailment


0.9


-


-


-

Total net periodic benefit cost

$(7.8)

  

$1.8

$0.6















F-36

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

6.

Employee Benefit Plans (continued)
 

Defined Benefit Plan (continued)
 

Assumptions used in determining the accounting for the defined benefit plans as of December 31, 2001 and 2001 were as follows:
 
 

2001

2000

Weighted-average discount rate

7.50%

7.75%

Rate of increase in compensation level

4.50%

5.00%

Expected long-term rate of return on assets

N/A

9.25%
     

The postretirement plan is contributory, to retired contribution levels adjusted annually; the life insurance portion of the plan provides a flat amount of noncontributory coverage with optional contributory coverage. The discount rate used in determining the postretirement benefit obligation as of December 31, 2001 was 7.50% and the health care cost trend rate used was 8.0% trending to 5.5% in 2007 and thereafter.

 

A one percentage-point increase in the assumed health care cost trend rate would increase the postretirement benefit obligation by approximately $967,000 and increase the service and interest cost components of annual expense by approximately $150,000.
 

Effective June 25, 2001, ReliaStar transferred sponsorship of the Success Sharing Plan and ESOP (Success Sharing Plan) to ING Holdings. The Company participates in the Success Sharing Plan, a defined contribution plan designed to increase employee ownership and reward employees when certain performance objectives are met. Essentially all employees of the Company are eligible to participate in the Success Sharing Plan. In addition, the Success Sharing Plan has a 401(k) feature, whereby participants may elect to contribute a percentage of their eligible earnings to the Plan. The Company matches participants' 401(k) contributions up to 6% of eligible earnings. Expense allocated to the Company for the Success Sharing and 401(k) plans for the years ended December 31, 2001 and 2000 was approximately $2.8 million and $8.8 million, respectively.







F-37

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

6.

Employee Benefit Plans (continued)
 

Defined Benefit Plan (continued)
 

The Company has no multiemployer plans, consolidated holding company plans or postemployment benefits and compensated absences.
 

Stock Incentive Plan
 

Prior to the acquisition in 2000, officers and key employees of the Company participated in the stock incentive plans of ReliaStar. ReliaStar applies Accounting Principles Board Opinion No. 25 and related interpretations in accounting for its plans. Accordingly, no compensation expense for stock-based compensation plans has been allocated to the Company.
 

7.

Income Taxes
 

ReliaStar Life Insurance Company files a consolidated federal income tax return with Security-Connecticut Life Insurance Company, Northern Life Insurance Company and ReliaStar Life Insurance Company of New York. The Company allocates an amount approximating the tax the member would have incurred were it not a member of a consolidated group and credits the member for use of its losses at the statutory rate.
 

The components of the net admitted deferred tax asset are as follows:
 
 

December 31, 2001

January 1, 2001


Change
 

(In Thousands)
       

Gross deferred tax asset

$246,787

$216,928

$29,859

Gross deferred tax liabilities

33,012

32,115

897

Net deferred taxes and change for the year

213,775

184,813

28,962

Non admitted deferred tax assets and change for year


(167,083)


(143,289)


(23,794)

Net admitted deferred tax asset and change for the year


$46,692


$41,524


$(5,168)




F-38

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

7.

Income Taxes (continued)
 

For 2001, the Company's income tax expense and change in deferred taxes differs from the amount obtained by applying the federal statutory rate of 35% to income before taxes (including capital gains) for the following reasons:
 
   

Year ended December 31,
   

2001
   

(In Thousands)
     

Expected federal income tax expense (benefit) at statutory rate of 35%

 		 


$(122,036)

Deferred acquisition costs

 

7,477

Due and deferred premiums

 		 

11,523

Investments

 		 

6,646

Subsidiary dividend income

 		 

(18,200)

Legal reserves

 		 

8,912

Insurance reserves

 		 

(2,166)

Other

 		 

1,063

Prior year return true-up

 		 

(7,574)

Total federal income tax expense

 		 

(114,355)

Change in deferred taxes

 		 

(28,962)

Total statutory federal income taxes

 		 

$(85,393)
 

For 2000, Income before federal income taxes differs from taxable income principally due to deferred acquisition cost, deferred premiums, and differences in reserves for policy and contract liabilities for tax and statutory-basis financial reporting purposes.










F-39

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

7.

Income Taxes (continued)
 

Prior to 1984, ReliaStar Life Insurance Company was allowed certain special deductions for federal income tax reporting purposes that were required to be accumulated in a "policyholders' surplus account" (PSA). In the event those amounts are distributed to shareholders, or the balance of the account exceeds certain limitations prescribed by the Internal Revenue Code, the excess amounts would be subject to income tax at current rates. Income taxes also would be payable at current rates if ReliaStar Life Insurance Company ceases to qualify as a life insurance company for tax reporting purposes, or if the income tax deferral status of the PSA is modified by future tax legislation. Management does not intend to take any actions nor does management expect any events to occur that would cause income taxes to become payable on the PSA balance. Accordingly, ReliaStar Life Insurance Company has not accrued income taxes on the PSA balance of $34 million at December 31, 2001. However, if such taxes were assessed, the amount of the taxes payable would be $12 million. No deferred tax liabilities are recognized related to the PSA.
























F-40

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

8.

Unpaid Accident and Health Claims
 

The change in the liability for unpaid accident and health claims and claim adjustment expenses is summarized as follows:
 
 

December 31
 

2001

2000
 

(In Millions)
     

Balance at January 1

$1,101

$675

Less reinsurance recoverables

374

288

Net balance at January 1

727

387
     

Incurred related to:

 		   

Current year

621

353

Prior years

25

132

Total incurred

646

485
     

Paid related to:

 		   

Current year

263

130

Prior years

89

15

Total paid

352

145
     

Net balance at December 31

1,021

727

Plus reinsurance recoverables

167

374

Balance at December 31

$1,188

$1,101
 

The liability for unpaid accident and health claims and claim adjustment expenses is included in Aggregate Reserves for Policies and Contracts and Policy and Contract Claims on the Statutory Basis Statements of Admitted Assets, Liabilities, Surplus and Other Funds. During the third quarter of 2001 the Company's reinsurance operations recorded reserve related adjustments to reflect the increase in workers compensation claims due the events of September 11th at the World Trade Center.





F-41

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

9.

Surplus Note
 

The Company has a surplus note with a principal value of $100 million from ReliaStar. The Commissioner of the Minnesota Department of Commerce has advised the Company that it will permit the funds received from the surplus note to be treated as surplus for statutory accounting purposes. The original note, dated April 1, 1989, was issued in connection with ReliaStar Life's demutualization and was used to offset the surplus reduction related to the cash distribution to the mutual policyholders in the demutualization. This original 101/4% note was replaced by a successor surplus note (the 1994 Note) dated November 1, 1994. The 1994 Note provides, subject to the regulatory constraints discussed below, that (i) it is a surplus note which will mature on September 15, 2021 with principal due at maturity, but payable without penalty, in whole or in part before maturity; (ii) interest is payable at a variable rate based upon an annualized yield rate for U.S. Treasury Bonds payable semi-annually; and (iii) in the event that ReliaStar Life is in default in the payment of any required interest or principal, ReliaStar Life cannot pay cash dividends on its capital stock (all of which is owned directly by ReliaStar). The 1994 Note further provides that there may be no payment of interest or principal without the express approval of the Minnesota Department of Commerce. During the year ended December 31, 2001 total interest paid on the 1994 Note was $7 million. Accrued interest was $2 million as of December 31, 2001. Interest paid on the 1994 Note since November 1, 1994 totaled $46 million.
 

10.

Capital and Surplus
 

The ability of the Company to pay cash dividends to its parent is restricted by law or subject to approval of the insurance regulatory authorities of Minnesota. These authorities recognize only statutory accounting practices for determining the ability of an insurer to pay dividends to its shareholders.
 

Under Minnesota insurance law regulating the payment of dividends by the Company, any such payment must be an amount deemed prudent by the Company's Board of Directors. Unless otherwise approved by the Commissioner, the dividend must be paid solely from the adjusted earned surplus of the Company.










F-42

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

10.

Capital and Surplus (continued)
 

Adjusted earned surplus means the earned surplus as determined in accordance with statutory accounting practices (unassigned funds), less 25% of the amount of such earned surplus which is attributable to net unrealized capital gains. Further, without approval of the Commissioner, the Company may not pay in any calendar year any dividend which, when combined with other dividends paid within the preceding 12 months, exceeds the greater of (i) 10% of the Company's statutory surplus at the prior year-end or (ii) 100% of the Company's statutory net gain from operations (not including realized capital gains) for the prior calendar year.
 

The Company has 25,000,000 authorized shares of common stock with a par value of $1.25 per share, 2,000,000 of which are outstanding. The Company also has 5,000,000 authorized shares of redeemable, cumulative, nonvoting preferred stock, none of which are outstanding.
 

The Company holds 80,000 shares of preferred stock in treasury at cost.
 

Total unassigned surplus at December 31, 2001 was $125 million and has no restrictions, except as described above.
 

11.

Reinsurance
 

The Company is a member of reinsurance associations established for the purpose of ceding the excess of life insurance over retention limits. The Company's retention limit is $1,000,000 per insurable life for individual coverage. For group coverage and reinsurance assumed, the retention is $500,000 per life with per occurrence limitations, subject to certain maximums.
 

Reinsurance contracts do not relieve the Company from its obligations to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company; consequently, allowances are established for amounts deemed uncollectible. The amount of the allowance for uncollectible reinsurance receivables was immaterial at December 31, 2001 and 2000. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk to minimize its exposure to significant losses from reinsurer insolvencies.







F-43

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

11.

Reinsurance (continued)
 

As of December 31, 2001 and 2000, $68 billion, respectively $40 billion of life insurance in force was ceded to other companies. The Company had assumed $117 billion, respectively $54 billion of life insurance in force as of December 31, 2001 and 2000.
 

The effect of reinsurance on premiums and recoveries is as follows:
 
 

Year ended December 31
 

2001

2000
 

(In Millions)
     

Direct premiums

$1,522

$1,538

Reinsurance assumed

623

656

Reinsurance ceded

(348)

(333)

Net premiums

$1,797

$1,861
     

Reinsurance recoveries

$241

$324
 

12.

Related Party Transactions
 

The Company received cash dividends totaling $52 million and $12 million from its subsidiaries during 2001 and 2000, respectively.














F-44

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

12.

Related Party Transactions (continued)
 

The Company and its affiliates have entered into agreements whereby they provide certain management, administrative, legal and other services to each other. The net amounts billed resulted in the Company recording a reduction of expenses totaling $54 million and $43 million in 2001 and 2000, respectively. The net costs allocated to the Company under these agreements may not be indicative of costs the Company might incur if these services were not provided by the Company's affiliates.
 

13.

Commitments and Contingencies
 

Litigation
 

The Company, like other insurance companies, may be named or otherwise involved in lawsuits, including class action lawsuits and arbitration. In some class actions and other actions involving insurers, substantial damages have been sought and/or material settlements or awards payments have been made. The Company currently believes that no pending or threatened lawsuits or actions exist that are reasonably likely to have a material adverse impact on the Company.
 

Joint Group Life and Annuity Contracts
 

The Company has issued certain participating group annuity and group life insurance contracts jointly with another insurance company. The Company has entered into an arrangement with this insurer whereby the Company will gradually transfer these liabilities (approximately $64 million at December 31, 2001) to the other insurer over a ten-year period which commenced in 1993. The terms of the arrangement specify the interest rate on the liabilities and provide for a transfer of assets and liabilities scheduled in a manner consistent with the expected cash flows of the assets allocated to support the liabilities. A contingent liability exists with respect to the joint obligor's portion of the contractual liabilities attributable to contributions received prior to July 1, 1993 in the event the joint obligor is unable to meet its obligations.









F-45

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

13.

Commitments and Contingencies (continued)
 

Financial Instruments
 

The Company is a party to financial instruments with on and off-balance-sheet risk in the normal course of business to reduce its exposure to fluctuations in interest rates and equity prices. These financial instruments include commitments to extend credit, financial guarantees, equity indexed call options and interest rate swaps. Those instruments involve, to varying degrees, elements of credit, interest rate, equity price or liquidity risk in excess of the amount recognized in the Statutory Basis Balance Sheets.
 

The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. For swaps and equity indexed call options, the contract or notional amounts do not represent exposure to credit loss. The Company's exposure to credit loss is limited to those financial instruments where the Company has an unrealized gain.
 

Unless otherwise noted, the Company does not require collateral or other security to support financial instruments with credit risk.
 
 

December 31
 

2001

2000
 

(In Millions)

Financial instruments whose contract amounts represent credit risk:

 		   

Commitments to extend credit

$40

$27

Financial guarantees

6

15

Financial instruments whose notional or contract amounts exceed the amount of credit risk:

 		   

Interest rate swap agreements

360

155

Equity indexed call options

6

6






F-46

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

13.

Commitments and Contingencies (continued)
 

Financial Instruments (continued)
 

Commitments to Extend Credit - Commitments to extend credit are legally binding agreements to lend to a customer. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. They generally may be terminated by the Company in the event of deterioration in the financial condition of the borrower. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future liquidity requirements. The Company evaluates each customer's creditworthiness on a case-by-case basis.
 

Financial Guarantees - Financial guarantees are conditional commitments issued by the Company guaranteeing the performance of the borrower to a third party. Those guarantees are primarily issued to support public and private commercial mortgage borrowing arrangements. The credit risk involved is essentially the same as that involved in issuing commercial mortgage loans.
 

The Company is a partner in four real estate joint ventures where the Company has guaranteed the repayment of loans of the partnership. As of December 31, 2001, the Company had guaranteed repayment of $6 million ($15 million at December 31, 2000) of such loans including the portion allocable to the PFA. If any payment were made under these guarantees, the Company would be allowed to make a claim for repayment from the joint venture, foreclose on the assets of the joint venture, including its real estate investment, and, in certain instances, make a claim against the joint venture's general partner.
 

For certain of these partnerships, the Company has made capital contributions from time to time to provide the partnerships with sufficient cash to meet its obligations, including operating expenses, tenant improvements and debt service. Capital contributions during 2001 and 2000 were insignificant. Further capital contributions may be required in future periods for certain of the joint ventures. The Company cannot predict the amount of such future contributions.







F-47

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

13.

Commitments and Contingencies (continued)
 

Financial Instruments (continued)
 

Interest Rate Swap Agreements - The Company enters into interest rate swap agreements to manage interest rate exposure. The primary reason for the interest rate swap agreements is to extend the duration of adjustable rate investments. Interest rate swap transactions generally involve the exchange of fixed and floating rate interest payment obligations without the exchange of the underlying principal amounts. Changes in market interest rates impact income from adjustable rate investments and have an opposite (and approximately offsetting) effect on the reported income from the swap portfolio. Notional principal amounts are often used to express the volume of these transactions but do not represent the much smaller amounts potentially subject to credit risk. The amount subject to credit risk is approximately equal to the unrealized gain on the agreements which was $29 million at December 31, 2001.
 

Equity Indexed Call Options - The Company holds certain call options indexed to the performance of the S&P 500 Index as part of its asset/liability management strategy for its equity indexed annuity products. The Company held options with an aggregate estimated fair value of $1 million as of December 31, 2001.
 

Futures Contracts - The Company previously entered into futures contracts to manage interest rate risk as part of the Company's asset and liability management program for its guaranteed investment contract (GIC) portfolio. During 1997, the Company closed out all of its futures contracts and immediately entered into zero coupon interest rate swaps. As of December 31, 2001, the remaining deferred gain on the closed futures contracts was approximately $4 million, which is being amortized into income over the life of the liabilities whose cash flows they supported.











F-48

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

14.

Fair Value of Financial Instruments
 

In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates, in many cases, could not be realized in immediate settlement of the instrument. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.
 

Life insurance liabilities that contain mortality risk and all nonfinancial instruments have been excluded from the disclosure requirements. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company's overall management of interest rate risk, such that the Company's exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts.
 

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:
 

Fixed maturities and equity securities - The fair values for bonds, preferred stocks and common stocks, reported herein, are based on quoted market prices as determined by the NAIC Securities Valuation Office, where available. For securities not actively traded, fair values are estimated using values obtained from independent pricing services or, in the case of private placements, commercial mortgages, collateralized mortgage obligations and other mortgage derivative investments, are estimated by discounting expected future cash flows. The discount rates used vary as a function of factors such as yield, credit quality, and maturity, which generally fall within a range between 2% and 18% over the total portfolio.












F-49

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

14.

Fair Value of Financial Instruments (continued)
 

Mortgage Loans on Real Estate - The fair values for commercial mortgages are estimated using a discounted cash flow approach. Commercial loans in good standing are discounted using interest rates determined by U.S. Treasury yields on December 31 and spreads required on new loans with similar characteristics. The amortizing features of all loans are incorporated into the valuation. Where data on option features was available, option values were determined using a binomial valuation method and were incorporated into the mortgage valuation.
 

Derivative financial instruments - Fair values for on-balance-sheet derivative financial instruments (options) and off-balance-sheet derivative financial instruments (swaps) are based on broker/dealer valuations or on internal discounted cash flow pricing models taking into account current cash flow assumptions and the counterparties' credit standing.
 

Other investment-type insurance contracts - The fair values of the Company's deferred annuity contracts are estimated based on the cash surrender values. The carrying values of other policyholder liabilities, including immediate annuities, dividend accumulations, supplementary contracts without life contingencies, and premium deposits, approximate their fair values.
 

Encumbrances - The fair value for debt obligations was based upon discounted cash flow analyses. The discount rate was based upon the Company's estimated current incremental borrowing rates.
 

Financial Guarantees - The fair values for financial guarantees were estimated using discounted cash flow analyses based upon the expected future net amounts to be expended. The estimated net amounts to be expended were determined based on projected cash flows and a valuation of the underlying collateral.
 

The carrying value of all other financial instruments approximates their fair value.









F-50

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

14.

Fair Value of Financial Instruments (continued)
 

The carrying amounts and estimated fair values of the Company's financial instruments as of December 31, 2001 and 2000 are as follows:
 
 

2001

  

2000
 

Carrying Amount

Fair
Value

  

Carrying Amount

Fair
Value
   

(In Millions)

  

Assets

          

Bonds

$4,956

$4,981

  

$4,464

$4,459

Stocks (unaffiliated)

26

30

  

28

32

Mortgage loans on real estate:

          

Commercial

794

827

  

575

581

Residential and other

-

-

  

-

-

Policy loans

263

263

  

260

260

Cash and short-term investments

268

268

  

67

67

Other financial instruments recorded as assets


92


92

  


425


425
           

Liabilities

          

Investment contracts:

          

Deferred annuities

(1,256)

(1,114)

  

(1,321)

(1,309)

GICs

(90)

(90)

  

(90)

(107)

Supplementary contracts and immediate annuities


(228)


(228)

  


(218)


(216)

Other investment contracts

(240)

(240)

  

(141)

(140)

Claim and other deposit funds

(167)

(167)

  

(57)

(44)

Encumbrances

-

-

  

-

-

Other financial instruments recorded as liabilities


(497)


(497)

  


(301)


(301)
           

Off-balance sheet financial instruments

 		         

Financial guarantees

-

1

  

-

(1)

Interest rate swaps

-

29

  

-

3







F-51

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

14.

Fair Value of Financial Instruments (continued)
 

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's holdings of a particular financial instrument. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
 

Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.
 

15.

Leases
 

The Company has operating leases for office space and certain computer processing and other equipment. Rental expense for these items was $9 million and $12 million for 2001 and 2000, respectively. Future minimum aggregate rental commitments at December 31, 2001 for operating leases were as follows (in millions):
 

2002

  

$3

2003

  

3

2004

  

2

2005

  

2

2006

  

1

2007 and thereafter

  

3

Total

$14






F-52

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

16.

Annuity Reserves
 

At December 31, 2001 and 2000, the Company's annuity reserves, including those held in separate accounts and deposit fund liabilities that are subject to discretionary withdrawal (with adjustment), subject to discretionary withdrawal (without adjustment), and not subject to discretionary withdrawal provisions are summarized as follows:
 
 

December 31, 2001
 

Amount

Percent
 

(In Millions)

  

Subject to discretionary withdrawal (with adjustment):

    

With market value adjustment

$344.3

6.89%

At book value less surrender charge

476.4

9.54%

At fair value

2,814.7

56.37%

Subtotal

3,635.3

72.80%

Subject to discretionary withdrawal

    

(without adjustment) at book value with

 		   

minimal or no charge or adjustment

909.1

18.20%

Not subject to discretionary withdrawal

449.6

9.00%

Total annuity reserves and deposit fund liabilities-

    

Before reinsurance

4,994.0

100%

Less reinsurance ceded

-

  

Net annuity reserves and deposit fund liabilities

$4,994.0

  













F-53

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

16.

Annuity Reserves (continued)
 
 

December 31, 2000
 

Amount

Percent
 

(In Millions)

  

Subject to discretionary withdrawal (with adjustment):

    

With market value adjustment

$197.9

4.00%

At book value less surrender charge

456.6

9.00%

At fair value

3,284.4

61.00%

Subtotal

3,938.9

74.00%

Subject to discretionary withdrawal

    

(without adjustment) at book value with minimal or no charge

 		   

or adjustment

875.3

16.00%

Not subject to discretionary withdrawal

542.0

10.00%

Total annuity reserves and deposit fund liabilities-

    

Before reinsurance

$5,356.3

100.0%

Less reinsurance ceded

   

Net annuity reserves and deposit fund liabilities

$5,356.3

  
 

17.

Separate Accounts
 

Most separate and variable accounts held by the Company relate to individual variable annuities of a nonguaranteed return nature. The net investment experience of the separate account is credited directly to the policyholder and can be positive or negative. These variable annuities generally provide an incidental death benefit of the greater of account value or premium paid. In 1996 the Company began offering a policy with a minimum guaranteed death benefit that is adjusted every seven years to the current account value. The assets and liabilities of these accounts are carried at market.










F-54

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

17.

Separate Accounts (continued)
 

Certain other separate accounts relate to experience-rated group annuity contracts, that fund defined contribution pension plans. These contracts provide guaranteed interest returns for one-year only, where the guaranteed interest rate is re-established each year based on the investment experience of the separate account. In no event can the interest rate be less than zero. There are guarantees of principal and interest for purposes of plan participant transactions (e.g., participant-directed withdrawals and fund transfers done at book value). The assets and liabilities of these separate accounts are carried at book value.
 

Information regarding the separate accounts of the Company is as follows:
 
 

2001

2000
 

(In Millions)

Transfers as reported in the summary of
operations of the Separate Accounts Statement:

 		   

Transfers to separate accounts

$ 960

$1,147

Transfers from separate accounts

623

833

Net transfers to separate accounts

337

314
     

Reconciling adjustments:

 		   

Miscellaneous transfers

(179)

(12)

Transfers as reported in the Statement of Operations

$158

$302















F-55

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

17.

Separate Accounts (continued)
   
 

December 31, 2001
 

Nonindexed Guarantee
Less than or
Equal to 4%


Nonguaranteed Separate Accounts




Total
 

(In Millions)

Reserves for separate accounts by withdrawal characteristics

 		     

Subject to discretionary withdrawal:

      

With market value adjustment

$158.0

$-

$158.0

At book value without market value adjustment less current surrender charge of 5% or more


-



-

At market value

-

3,632.6

3,632.6

At book value without market value adjustment less current surrender charge of less than 5%


-


-


-

 

158.0

3,632.6

3,790.6

Not subject to discretionary withdrawal

-

1.2

1.2

Total aggregate reserve for separate accounts

$158.0

$3,633.8

$3,791.8
















F-56

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

17.

Separate Accounts (continued)
 

December 31, 2000
 

Nonindexed Guarantee
Less than or
Equal to 4%


Nonguaranteed Separate Accounts




Total
 

(In Millions)

Reserves for separate accounts by withdrawal characteristics

 		     

Subject to discretionary withdrawal:

      

With market value adjustment

$37.4

$-

$37.4

At book value without market value adjustment less current surrender charge of 5% or more


-


-


-

At market value

-

4,161.5

4,161.5

At book value without market value adjustment less current surrender charge of less than 5%


-


-


-

Subtotal

37.4

4,161.5

4,198.9

Not subject to discretionary withdrawal

-

1.8

1.8

Total aggregate reserve for separate accounts

$37.4

$4,163.3

$4,200.7
 

18.

Guaranty Fund Assessments
 

Insurance companies are assessed the costs of funding the insolvencies of other insurance companies by the various state guaranty associations, generally based on the amount of premium companies collect in that state.
















F-57

 

ReliaStar Life Insurance Company

(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
 

Notes to Financial Statements - Statutory Basis
 

18.

Guaranty Fund Assessments (continued)
 

The Company accrues the cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) and the amount of premiums written in each state. The Company reduces the accrual by credits allowed in some states to reduce future premium taxes by a portion of assessments in that state. The guaranty fund assessments of the Company are not material.
 

19.

Regulatory Risk-Based Capital
 

The NAIC prescribes risk-based capital (RBC) requirements for life/health insurance companies. RBC is a series of dynamic surplus-related formulas for monitoring solvency. At December 31, 2001, the Company exceeded all minimum RBC requirements.
 

20.

Reconciliation to the Annual Statement
 

At December 31, 2001, differences in amounts reported in the 2001 Annual Statement, as revised, and amounts in the accompanying statutory-basis financial statements are due to the following:
 
 


Net Income

Capital and Surplus
     

Amounts as reported in the
2001 Annual Statement


$(303,839,000)


$1,184,979,000

Effects of codification accounting change

52,000,000

-

Amounts as reported in the accompanying statutory-basis financial statements


$(251,839,000)


$1,184,979,000
 

21.

Event (Unaudited) Subsequent to the Date of the Report of Independent Auditors
 

On June 28, 2002, the Board of Directors of the Company approved a plan to merge with the Company's wholly owned subsidiary, Northern Life Insurance Company. The Company will be the surviving corporation of the transaction. The Minnesota Department of Commerce is expected to approve the merger in July 2002. The merger is anticipated to be effective on October 1, 2002.






F-58
 

124748

  

September 2000

 

PART II

INFORMATON NOT REQUIRED IN PROSPECTUS
 

UNDERTAKINGS TO FILE REPORTS
 

Subject to the terms and conditions of Section 15(d) of the Securities Exchange Act of 1934, the undersigned registrant hereby undertakes to file with the Securities and Exchange Commission such supplementary and periodic information, documents and reports as may be prescribed by any rule or regulation of the Commission heretofore or hereafter duly adopted pursuant to authority conferred in that section.
 

UNDERTAKING PURSUANT TO RULE 484
 

Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
 

"REASONABLENESS" REPRESENTATION PURSUANT TO 26(e)(2)(A)

OF THE INVESTMENT COMPANY ACT OF 1940
 

ReliaStar Life Insurance Company represents that the fees and charges deducted under the variable life insurance policy, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by ReliaStar Life Insurance Company.
 

CONTENTS OF REGISTRATION STATEMENT
 

This Post-Effective Amendment No. 14 to Registration Statement No. 33-57244 is comprised of the following papers and documents:
 

-

The Facing Sheet.

-

One Supplement dated September 17, 2002 and consisting of 92 pages to the SelectH Life II prospectus.

-

The undertaking to file reports.

-

The Undertaking pursuant to Rule 484.

-

"Reasonableness" representation pursuant to Section 26(e)(2)(A) of the Investment Company Act of 1940.

-

The signatures.

-

Written consents of the following persons:

-

A.

Consent of Counsel (incorporated by reference and included as part of Exhibit No. 2 below)

B.

Actuarial Consent (incorporated by reference and included as part of Exhibit No. 6 below)

C.

Consent of Independent Auditors (included as Exhibit No. 7 below)

1

The following exhibits correspond to those required by Paragraph A of the instructions as to exhibits in Form N-8B-2
 

(1)

  

Resolutions of Board of Directors of Northwestern National Life Insurance Company ("NWNL") establishing the ReliaStar Select« Life Variable Account. (Filed as an Exhibit in S-6EL24 on December 23, 1996, Accession Number 0000897899-96-000017, CIK 0000897899 and incorporated herein by reference)
 

(2)

  

Not Applicable
 

(3)

(a)

Form of ReliaStar Life Insurance Company Distribution Agreement between ReliaStar Life Insurance Company and ING America Equities, Inc. (Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form S-6, 333-47094, as filed on September 17, 2002)
   

(b)

Specimens of Selling Agreements (Filed as part of ReliaStar Select*Life Variable Account S-6EL24 on December 23, 1996, Accession Number 0000897899-96-000017, CIK 0000897899 and incorporated herein by reference)
   

(c)

Form of Assignment of Broker/Dealer Agency Selling Agreement. (Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form S-6, 333-47094, as filed on September 17, 2002)
   

(d)

Specimen ING America Equities, Inc. Selling Agreement. (Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form S-6, File No. 333-69431, as filed on April 24, 2002)
   

(e)

Schedules of Sale Commissions (Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement o Form S-6 File No. 333-69431, as filed on April 24, 2002)
 

(4)

  

Not Applicable
 

(5)

(a)

Form of Policy available (together with available Policy Riders). (Filed in Post-Effective No. 9)
   

(b)

Accelerated Benefit Rider. (Filed in Post-Effective No. 4)
   

(c)

Connecticut Modification Rider. (Filed in Post-Effective Amendment No. 4)
   

(d)

Policy Illustration. (Incorporated by reference to Post-Effective Amendment No. 13 on Form S-6, 33-57244, as filed on April 24, 2002)
 

(6)

(a)

Amended Articles of Incorporation of ReliaStar Life. (Filed as part of Select« Life Variable Account S-6EL24 on December 23, 1996, Accession Number 0000897899-96-000017, CIK 0000897899 and incorporated herein by reference)
   

(b)

Amended By-Laws of ReliaStar Life. (Filed as part of Select« Life Variable Account S-6EL24 on December 23, 1996, Accession Number 0000897899-96-000017, CIK 0000897899 and incorporated herein by reference)
 

(7)

  

Not Applicable
 

(8)

(a)

Participation Agreement with Fidelity's Variable Insurance Products Fund and Fidelity Distributors Corporation and Amendments Nos. 1-8. (Filed as part of Select« Life Variable Account S-6EL24 on December 23, 1996, Accession Number 0000897899-96-000017, CIK 0000897899 and incorporated herein by reference)
   

(b)

Form of Amendment No. 10 to Participation Agreement with Fidelity's Variable Insurance Products Fund and Fidelity Distributors Corporation. (Filed in S6-A on April 5, 1999, File No. 333-69431 and incorporated herein by reference)
   

(c)

Form of Amendment No. 11 and 12 to Participation Agreement with Fidelity's Variable Insurance Products Fund and Fidelity Distributors Corporation. (Filed in Form S-6 on September 29, 2000, File No. 333-47094 and incorporated herein by reference)
   

(d)

Participation Agreement with Fidelity's Variable Insurance Products Fund II and Fidelity Distributors Corporation and Amendments Nos. 1-7. (Filed as part of Select« Life Variable Account S-6EL24 on December 23, 1996, Accession Number 0000897899-96-000017, CIK 0000897899 and incorporated herein by reference)
   

(e)

Form of Amendment No. 9 to Participation Agreement with Fidelity's Variable Insurance Products Fund II and Fidelity Distributors Corporation. (Filed in S6-A on April 5, 1999, File No. 333-69431 and incorporated herein by reference)
   

(f)

Form of Amendments No. 10 and 11 to Participation Agreement with Fidelity's Variable Insurance Products Fund II and Fidelity Distributors Corporation. (Filed in S-6 on September 29, 2000, File No. 333-47094 and incorporated herein by reference)
   

(g)

Form of Service Agreement and Contract between ReliaStar Life Insurance Company, WSSI, and Fidelity Investments Institutional Operations Company and Distributors Corporation dated January 1, 1997. (Filed in S-6 on September 29, 2000, File No. 333-47094, and incorporated herein by reference)
   

(h)

Participation Agreement with Putnam Capital Manager Trust and Putnam Mutual Funds Corp. and Amendments Nos. 1-2. (Filed in S-6EL24 on December 23, 1996, File No. 333-18517, and incorporated herein by reference)
   

(i)

Form of Amendments No. 3 and 4 to Participation Agreement with Putnam Capital Manager Trust and Putnam Mutual Funds Corp. (Filed in S-6 on September 29, 2000, File No. 333-47094 and incorporated herein by reference)
   

(j)

Form of Service Agreement by and between ReliaStar Life Insurance Company and Janus Capital Corporation. (Filed in Form S-6 on August 4, 1997, File No. 2-95392 and incorporated herein and by reference)
   

(k)

Form of Service Agreement by and between ReliaStar Life Insurance Company and Fred Alger Management, Inc. (Filed in Form S-6 on August 4, 1997, File No. 2-95392 and incorporated herein and by reference)
   

(l)

Form of Service Agreement by and between ReliaStar Life Insurance Company and OpCap Advisors. (Filed in Form S-6 on August 4, 1997, File No. 2-95392 and incorporated herein and by reference)
   

(m)

Form of Service Agreement by and between ReliaStar Life Insurance Company and Neuberger Berman Management Incorporated. (Filed in Form S-6 on August 4, 1997, File No. 2-95392 and incorporated herein and by reference)
   

(n)

Form of Participation Agreement by and among ReliaStar Life Insurance Company, Neuberger Berman Advisers Management Trust, Advisers Managers Trust and Neuberger Berman Management, Inc. (Filed in Form S-6 on August 4, 1997, File No. 2-95392 and incorporated herein and by reference)
   

(o)

Form of Amendment No. 1 to Participation Agreement by and among ReliaStar Life Insurance Company, Neuberger Berman Advisers Management Trust, Advisers Managers Trust and Neuberger Berman Management, Inc. (Filed in S6-A on April 5, 1999, File No. 333-69431 and incorporated herein by reference)
   

(p)

Form of Participation Agreement by and between ReliaStar Life Insurance Company and Janus Aspen Series. (Filed in Form S-6 on August 4, 1997, File No. 2-95392 and incorporated herein and by reference)
   

(q)

Amendment to Participation Agreement by and between ReliaStar Life Insurance Company and Janus Aspen Series. (Filed in Form S-6 on April 14, 2000, File No. 333-69431 and incorporated herein by reference)
   

(r)

Form of Participation Agreement by and between ReliaStar Life Insurance Company and Fred Alger Management, Inc. (Filed in Form S-6 on August 4, 1997, File No. 2-95392 and incorporated herein and by reference)
   

(s)

Exhibit to Participation Agreement (Filed Form S-6 on March 31, 2000, File No. 33-57244 and incorporated herein and by reference)
   

(t)

Form of Amendment dated September 29, 2000, to the Participation Agreement by and between ReliaStar Life Insurance Company and Fred Alger Management, Inc. (Filed in Form S-6 on September 29, 2000, Accession Number 0000897101-00-000949, File No. 333-47094 and incorporated herein by reference)
   

(u)

Form of Amendment to Participation Agreement by and between ReliaStar Life Insurance Company and OpCap Advisers. (Filed in Form S-6 on August 4, 1997, File No. 2-95392 and incorporated herein by reference)
   

(v)

Form of Participation Agreement by and among ReliaStar Life Insurance Company, AIM Variable Insurance Products Fund, Inc., AIM Distributors, Inc. and WSSI. (Filed in Form S-6 on March 31, 2000, File No. 33-57244 and incorporated herein by reference)
   

(w)

Form of Amendment No. 1 to Participation Agreement by and among ReliaStar Life Insurance Company, AIM Variable Insurance Products Fund, Inc., AIM Distributors, Inc. and WSSI. (Filed in Form S-6 on September 29, 2000, Accession Number 0000897101-00-000949, File No., 333-47094 and incorporated herein by reference)
   

(x)

Form of Administrative Services Agreement by and between ReliaStar Life Insurance Company and A I M Advisors, Inc. (Filed in Form S-6 on March 31, 2000, File No. 33-57244 and incorporated herein and by reference)
   

(y)

Form of Participation Agreement by and between GCG Trust and ReliaStar Life Insurance Company. (Filed in Form S-6 on March 30, 2001, File No. 333-69431 and incorporated herein and by reference)
   

(z)

Form of Participation Agreement by and between ReliaStar Life Insurance Company, Pilgrim Variable Products Trust, and Pilgrim Investment, Inc. (Filed in Form S-6 on March 30, 2001, File No. 333-69431 and incorporated herein and by reference)
   

(aa)

Amendment, effective July 1, 2002 to Letter Agreement dated August 8, 1997 between Janus Capital Corporation (the "Adviser"), and ReliaStar Life Insurance Company. (Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form S-6, 333-69431, as filed on April 24, 2002)
   

(bb)

Administrative and Shareholder Services Agreement dated as of May 1, 2001 by and between ING Pilgrim Group, LLC and ReliaStar Life Insurance Company. (Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form S-6, 333-69431, as filed on April 24, 2002)
   

(cc)

Administrative and Shareholder Service Agreement between ReliaStar Life Insurance Company and ING Pilgrim Investments, LLC. (Incorporated by reference to Initial Registration on Form S-6, 333-92000, as filed on July 3, 2002)
   

(dd)

Participation Agreement by and among Portfolio Partners, Inc., Aetna Life Insurance and Annuity Company, Aetna Investment Services, LLC and ReliaStar Life Insurance Company (Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form S-6, 333-69431, as filed on April 24, 2002)
   

(ee)

Amendment to Participation Agreement by and among Portfolio Partners, Inc., Aetna Life Insurance and Annuity Company, Aetna Investment Services, LLC and ReliaStar Life Insurance Company (Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form S-6, 333-69431, as filed on April 24, 2002)

 

  

(ff)

Participation Agreement between ReliaStar Life Insurance Company, ING Variable Portfolios, Inc. and ING Funds Distributor, Inc. (Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form S-6, 333-47094, as filed on September 17, 2002)
   

(gg)

Participation Agreement between ReliaStar Life Insurance Company, ING VP Bond Portfolio and ING Funds Distributor, Inc. (Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form S-6, 333-47094, as filed on September 17, 2002)
   

(hh)

Participation Agreement by and among Pioneer Variable Contracts Trust, ReliaStar Life Insurance Company, Pioneer Investment Management, Inc. and Pioneer Funds Distributor, Inc. (Incorporated by reference to Initial Registration Statement on Form S-6, 333-92000, as filed on July 3, 2002)
 

9

  

Not Applicable
 

10

(a)

Revised Policy Application Form. (Filed in Form S-6 on March 30, 2001, File No. 333-69431 and incorporated herein and by reference)
   

(b)

Revised Supplement to Policy Application Form. (Filed in Form S-6 on March 30, 2001, File No. 333-69431 and incorporated herein and by reference)

2

Opinion and Consent of Counsel. (Incorporated by reference to Post-Effective Amendment No. 13 on Form S-6, 33-57244, as filed on April 24, 2002)

3

Not Applicable

4

Not Applicaable

5

Not Applicable

6

Actuarial Opinion and Consent. (Incorporated by reference to Post-Effective Amendment No. 13 on Forms S-6, 33-57244, as filed on April 24, 2002)

7

(a)

Consent of Independent Auditors -- Ernst & Young LLP
 

(b)

Consent of Independent Auditors -- Deloitte & Touche LLP

8

Document setting forth administrative procedures to be followed by RLIC for Purchase, Redemption, Transfer, and Conversion - re Policy Form 84-705. (Incorporated by reference to Post-Effective Amendment No. 13 on Form S-6, 33-57244, as filed on April 24, 2002)

9

Powers of Attorney. (Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form S-6, 333-47094, as filed on September 17, 2002)

 

 

SIGNATURES
 

Pursuant to the requirements of the Securities Act of 1933, the Registrant, Select*Life Variable Account, certifies that it meets all of the requirements for effectiveness of this Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Post-Effective Amendment No 3 to this Registration Statement on Form S-6 (File No. 333-47094) to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Hartford and in the State of Connecticut on the 17th day of September, 2002.
 

SELECT*LIFE VARIABLE ACCOUNT
 

(Registrant)
   
 

By:

RELIASTAR LIFE INSURANCE COMPANY
   

(Depositor)
     
 

By:

Keith Gubbay*
   

President
(principal executive officer)
 

Pursuant to the requirements of the Securities Act of 1933, Post- Effective Amendment No. 14 to this Registration Statement has been signed below by the following persons in the capacities indicated and on the date indicated.
 

Signature

Title

Date

Keith Gubbay*

Director and President

)

Keith Gubbay

(principal executive officer)

)

)

Thomas J. McInerney*

Director

)

September

Thomas J. McInerney

)

17, 2002

)

Randy Lowery*

Director

)

P. Randall Lowery

)

)

Mark A. Tullis*

Director

)

Mak A. Tullis

)

)

Chris Schreier*

Director, Sr. Vice President and Chief Financial Officer

)

Chris Schreier

(principal financial officer and principal accounting officer)

)

)

By:

/s/ J. Neil McMurdie

J. Neil McMurdie

*Attorney-in-Fact

 

VARIABLE LIFE ACCOUNT B

Exhibit Index
 

Exhibit No.

Exhibit

  
     

99-7(a)

Consent of Independent Auditors -- Ernst & Young LLP

  
     

99-7(b)

Consent of Independent Auditors -- Deloitte & Touche LLP