Revere Paul Variable Annuity Contract Accmulation Fund N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-01356

THE PAUL REVERE VARIABLE ANNUITY

CONTRACT ACCUMULATION FUND

(Exact name of Registrant as specified in charter)

18 Chestnut Street

Worcester, MA 10608

(Address of principal executive offices)

CT Corporation System

101 Federal Street

Boston, MA 02110

(Name and address of agent for service)

Registrant’s telephone number, including area code: (508) 792-6358

Date of fiscal year end: December 31

Date of reporting period: January 31, 2006 – June 30, 2006

Item 1. Report to Stockholders.

Semi-Annual Report

June 30, 2006

Board of Managers of

The Accumulation Fund:

Donald E. Boggs, Chairman

Gordon T. Miller, Vice Chairman

David G. Fussell

Joan Sadowsky

H. C. Goodwin

THE PAUL REVERE VARIABLE ANNUITY

CONTRACT ACCUMULATION FUND

A Separate Account of The Paul Revere

Variable Annuity Insurance Company

This report and the financial statements attached are submitted for the general information of contractowners and are not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing herein contained is to be considered an offer of sale of The Paul Revere Variable Annuity Insurance Company contracts. Such offering is made only by prospectus, which includes details as to offering price and other material information.

TO OUR CONTRACTOWNERS AND PARTICIPANTS:

THE PAUL REVERE VARIABLE ANNUITY

CONTRACT ACCUMULATION FUND

VARIABLE ANNUITY CONTRACTS

During the first six months of 2006, based on the Russell indices, large cap stocks underperformed mid and small capitalization stocks, and value stocks led growth stocks among all market caps.

Although the pace of corporate earnings growth has slowed from recent quarters, profits remained healthy in the first six months of the year. With stocks trailing earnings momentum, price-to-earnings ratios (valuations) have become more attractive.

Against this backdrop, the portfolio underperformed the Russell 1000 Growth Index during the first half of 2006. Stock selection in leisure and technology, and an underweighting in industrial goods and services detracted the most from relative performance. The special products and services sector had a positive impact on relative performance. The portfolio’s philosophy and approach remain consistent.

With aggregate earnings growth in the market likely to decelerate, the continued focus of this large cap growth portfolio is on companies which we believe are better able to sustain solid fundamentals. Though the portfolio is well diversified and invested across all sectors, the biggest overweights remain in technology and health care. We believe that technology stocks have the potential to deliver attractive long term revenue and earnings growth and superior returns on capital. We believe these stocks are trading at valuations that are attractive compared to the market as a whole. Key overweights were in pharmaceuticals, biotechnology and medical equipment.

Thank you for your continued support.

Sincerely,

/s/ Donald E. Boggs

Donald E. Boggs

Chairman, Board of Managers

The Paul Revere Variable Annuity

Contract Accumulation Fund

Additional Information.

REMUNERATION OF THE BOARD OF MANAGERS

UnumProvident paid all expenses relative to the operation of The Paul Revere Variable Annuity Contract Accumulation Fund (the “Fund”) including Board of Managers’ fees. Accordingly, no member of the Board of Managers receives any remuneration from the Fund. The total aggregate remuneration paid to all members of the Board of Managers for the fiscal year ended December 31, 2005, was $7,200.00. This amount represents consideration paid for attendance at meetings of the Board of Managers. Those members of the Board of Managers deemed to be interested persons received direct remuneration or an indirect benefit as officers of The Paul Revere Variable Annuity Insurance Company (“PRV”). None of the members of the Board of Managers, or officers of the Fund, who are also officers or employees of PRV or its affiliates, received any remuneration from the Fund.

PROXY VOTING POLICIES

A description of the Fund’s proxy voting policy and procedures is available without charge, upon written request, from the Secretary of the Board of Managers. Please send a written request to the Secretary of the Board of Managers, c/o UnumProvident Corporation at 1 Fountain Square, Chattanooga, Tennessee 37402. You may also view a description of the Fund’s proxy voting policy and procedures on the Securities and Exchange Commission (“SEC”) website, www.sec.gov.

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12 month period is available via the methods noted above.

QUARTERLY FILING REQUIREMENTS

In November 2004, the Fund began filing its complete schedule of investments with the SEC for the first and third quarter of each fiscal year on Form N-Q, which when filed, is available without charge, upon written request, from the Secretary of the Board of Managers. Please send a written request to the Secretary of the Board of Managers, c/o UnumProvident Corporation at 1 Fountain Square, Chattanooga, Tennessee 37402. You may also view its complete schedule of investments on Form N-Q on the SEC’s website, www.sec.gov.

STATEMENT OF ADDITIONAL INFORMATION

The Statement of Additional Information (“SAI”) includes additional information about members of the Board of Managers of the Registrant, and is available, without charge, upon request, toll-free at 1-800-718-8824 for contractowners to call to request the SAI.

INFORMATION CONCERNING MEMBERS OF THE BOARD OF MANAGERS

(1)	(2)	(3)	(4)	(5)	(6)
Name, Address, and Age	Position(s) Held with Fund	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Director or Nominee for Director	Other Directorships Held by Director or Nominee For Director
H. C. Goodwin (71) 24 Waters Road Sutton, MA 01590	Member, Board of Managers	2004-2007 4 years of service	President of Manufacturers Service Center, Inc.	2	None
Gordon T. Miller (84) 14 Eastwood Road Shrewsbury, MA 01545	Vice Chairman, Board of Managers	2004-2007 37 years of service	Retired; Former Vice President and Director of Industrial Relations of Barry Wright Corporation, Newton Lower Falls, MA. (antivibration products)	2	None
Joan Sadowsky (76) 770 Salisbury Street Apt. 576 Worcester, MA 01609	Member, Board of Managers	2003-2006 20 years of service	Retired; Former Vice President of Human Resources, Atlas Distributing Corporation, Auburn, MA (beverage distribution)	2	None

The members of the Board of Managers listed below are “interested persons” of the Fund within the meaning of Section 2(a)(19) of the Investment Company Act of 1940.

INFORMATION CONCERNING MEMBERS OF THE BOARD OF MANAGERS

(CONTINUED)

(1)	(2)	(3)	(4)	(5)	(6)
Name, Address, and Age	Position(s) Held with Fund	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Director or Nominee for Director	Other Directorships Held by Director or Nominee For Director
Donald E.Boggs* (61) 1 Fountain Square Chattanooga, TN 37402	Chairman Board of Managers	2004-2007 8 years of service	Retired, Senior Vice President UnumProvident Corporation Chattanooga, Tennessee	2	None
David G. Fussell* (59) 1 Fountain Square Chattanooga, TN 37402	Member, Board of Managers	2003-2006 4 years of service	Senior Vice President UnumProvident Corporation, Chattanooga, Tennessee	2	None

* Officers of PRV, (the investment advisor, underwriter and sponsoring insurance company) and other subsidiaries within the UnumProvident Corporation holding company system.

None of the members of the Board of Managers who are not “interested persons” of the Fund within the meaning of Section 2(a)(19) of the Investment Company Act of 1940 owns beneficially or of record securities of PRV or any of its affiliates.

The Paul Revere Variable Annuity Contract Accumulation Fund

Financial Statements

(Unaudited)

June 30, 2006

Statement of Assets and Liabilities	1
Statements of Changes in Net Assets	2
Statement of Operations	3
Schedule of Investments	4
Supplementary Information	7
Notes to Financial Statements	8

Statement of Assets and Liabilities

(Unaudited)

	June 30, 2006
	Series Q (Qualified)		Series N (Non-Qualified)
ASSETS
Investments in securities at market value
(Cost: Series Q - $8,686,805)
(Cost: Series N - $1,366,509)
(see Schedule of Investments)	$	8,758,950	$	1,373,204
Cash		640		72,864
Dividends and Interest receivable		5,717		946
Receivable for investments sold		323,000		—
Receivable from the Paul Revere Variable Annuity Insurance Company		311		55
Total assets		9,088,618		1,447,069
LIABILITIES
Payable for investments purchased		315,133		—
Payable to The Paul Revere Variable Annuity Insurance Company		25,368		5,791
Total liabilities		340,501		5,791
TOTAL NET ASSETS	$	8,748,117	$	1,441,278
CONTRACT OWNERS’ EQUITY
Deferred contracts terminable by owner	$	7,073,208	$	699,637
Currently payable contracts		1,674,909		741,641
Total net assets	$	8,748,117	$	1,441,278
ACCUMULATION UNITS OUTSTANDING		732,680		124,828
NET ASSET VALUE PER ACCUMULATION UNIT	$	11.940	$	11.546

See accompanying notes to financial statements.

1

Statements of Changes in Net Assets

(Unaudited)

	Six Months Ended June 30, 2006 Series Q (Qualified)			Year Ended December 31, 2005 Series Q (Qualified)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment loss	$	(30,024	)	$	(72,553	)
Net realized gain on investments		214,430			544,103
Net decrease in unrealized appreciation of investments		(502,222	)		(344,677	)
Increase (decrease) in net assets from operations		(317,816	)		126,873
Payments to contract owners:
Annuity payments to contract owners		123,132			245,149
Terminations and withdrawals to contract owners		315,337			107,267
Total payments to contract owners		438,469			352,416
Total decrease in net assets		(756,285	)		(225,543	)
NET ASSETS
Beginning of period		9,504,402			9,729,945
End of period	$	8,748,117		$	9,504,402
	Six Months Ended June 30, 2006 Series N (Non-Qualified)			Year Ended December 31, 2005 Series N (Non-Qualified)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment loss	$	(8,242	)	$	(17,411	)
Net realized gain on investments		44,618			99,697
Net decrease in unrealized appreciation of investments		(92,030	)		(56,338	)
Increase (decrease) in net assets from operations		(55,654	)		25,948
Contract receipts:
Gross purchase payments received		—			279
Deductions from purchase payments		—			8
Net purchase payments received		—			271
Payments to contract owners:
Annuity payments to contract owners		26,730			53,459
Terminations and withdrawals to contract owners		5,450			40,559
Total payments to contract owners		32,180			94,018
Net contract payments to contract owners		(32,180	)		(93,747	)
Total decrease in net assets		(87,834	)		(67,799	)
NET ASSETS
Beginning of period		1,529,112			1,596,911
End of period	$	1,441,278		$	1,529,112

See accompanying notes to financial statements.

2

Statement of Operations

(Unaudited)

	Six Months Ended June 30, 2006 Series Q (Qualified)
INVESTMENT LOSS
Income:
Dividends	$	42,413
Interest		3,628
Total income		46,041
Expenses:
Mortality and expense risk fees		46,543
Investment management and advisory service fees		23,272
Professional services		6,250
Total expenses		76,065
Net investment loss		(30,024	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments sold		214,430
Net decrease in unrealized appreciation of investments		(502,222	)
Net realized and unrealized loss on investments		(287,792	)
Decrease in net assets from operations	$	(317,816	)
	Six Months Ended June 30, 2006 Series N (Non-Qualified)
INVESTMENT LOSS
Income:
Dividends	$	6,850
Interest		55
Total income		6,905
Expenses:
Mortality and expense risk fees		7,598
Investment management and advisory service fees		3,799
Professional services		3,750
Total expenses		15,147
Net investment loss		(8,242	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments sold		44,618
Net decrease in unrealized appreciation of investments		(92,030	)
Net realized and unrealized loss on investments		(47,412	)
Decrease in net assets from operations	$	(55,654	)

See accompanying notes to financial statements.

3

Schedule of Investments

June 30, 2006

(Unaudited)

Securities of Unaffiliated Companies	Number of Shares	Series Q (Qualified)				% of Net Assets		Number of Shares	Series N (Non-Qualified)				% of Net Assets
		Cost		Market Value					Cost		Market Value
Common Stocks
Aerospace & Military Technology
Boeing Company	500	$	39,965	$	40,955			100	$	7,993	$	8,191
United Technologies Corporation	2,570		133,053		162,989			430		22,134		27,271
			173,018		203,944	2.33	%			30,127		35,462	2.46	%
Agriculture
Monsanto Company	1,100		94,567		92,609	1.06	%	150		12,982		12,628	0.88	%
Beverages
PepsiCo, Inc.	1,660		82,336		99,666	1.14	%	280		13,961		16,811	1.17	%
Broadcasting & Media
Grupo Televisa S.A. *	3,110		62,212		60,054	0.69	%	520		10,402		10,041	0.70	%
Business Services
Accenture, Ltd. Class A	1,080		31,898		30,586			180		5,316		5,098
Cintas Corporation *	1,130		47,707		44,929			190		8,019		7,554
Sysco Corporation	2,330		73,624		71,205			390		12,324		11,918
			153,229		146,720	1.68	%			25,659		24,570	1.70	%
Computer Systems & Services
Adobe Systems, Inc.	4,000		148,934		121,440			660		24,822		20,038
Apple Computer, Inc. *	1,630		107,124		93,106			240		15,988		13,709
Automatic Data Processing, Inc.	1,000		46,189		45,350			200		9,238		9,070
EBay, Inc. *	2,000		67,789		58,580			330		11,198		9,666
Electronic Arts, Inc. *	3,590		194,895		154,514			600		32,577		25,824
EMC Corporation	16,110		207,291		176,727			2,670		34,019		29,290
First Data Corporation	4,090		193,128		184,214			660		31,115		29,726
Google, Inc. Class A *	550		219,685		230,631			45		18,026		18,870
Hewlett Packard Company	3,190		107,311		101,059			550		18,502		17,424
International Game Technology, Inc.	2,880		103,537		109,267			480		17,253		18,211
Microsoft Corporation	6,920		178,931		161,236			1,100		28,722		25,630
Oracle Corporation *	11,500		148,944		166,635			1,910		24,665		27,676
SanDisk Corporation *	1,280		56,876		65,254			210		9,319		10,706
Yahoo!, Inc. *	3,540		116,988		116,820			610		20,151		20,130
			1,897,622		1,784,833	20.40	%			295,595		275,970	19.15	%
Conglomerate
Danaher Corporation	820		54,178		52,742			140		9,252		9,005
General Electric Company	9,730		343,760		320,701			1,650		58,209		54,384
3M Company	580		45,263		46,847			100		7,812		8,077
			443,201		420,290	4.80	%			75,273		71,466	4.96	%
Consumer Goods & Services
Colgate-Palmolive Company	670		37,962		40,133			110		6,233		6,589
Ecolab, Inc.	1,370		52,398		55,595			230		8,796		9,333
NIKE, Inc. Class B	1,800		151,060		145,800			300		25,121		24,300
Proctor & Gamble Company	4,380		250,967		243,528			680		38,876		37,808
			492,387		485,056	5.54	%			79,026		78,030	5.41	%
Electronics
Harman International Industries, Inc.	990		101,472		84,516			160		16,379		13,659
LG.Philips LCD Company, Ltd. *	1,980		42,384		35,878			330		7,064		5,980
			143,856		120,394	1.38	%			23,443		19,639	1.36	%

See accompanying notes to financial statements.

4

Schedule of Investments (continued)

June 30, 2006

(Unaudited)

	Number Of Shares	Series Q (Qualified)				% of Net Assets		Number Of Shares	Series N (Non-Qualified)				% of Net Assets
		Cost		Market Value					Cost		Market Value
Common Stocks-Continued
Energy Services
GlobalSantaFe Corporation	2,110	$	83,787	$	121,852			350	$	13,736	$	20,213
Noble Corporation	940		67,165		69,955			160		11,742		11,907
Transocean, Inc. *	290		24,314		23,293			50		4,192		4,016
Weatherford International, Ltd. *	2,160		93,691		107,179			360		15,621		17,863
Praxair, Inc.	440		23,808		23,760			70		3,788		3,780
			292,765		346,039	3.96	%			49,079		57,779	4.01	%
Financial Institutions
American Express Company	2,860		140,815		152,209			480		23,706		25,546
Chicago Mercantile Exchange Holdings, Inc. Class A	320		149,844		157,168			40		18,751		19,646
Merrill Lynch & Company., Inc.	430		25,733		29,911			70		4,189		4,869
Morgan Stanley	1,130		69,145		71,427			190		11,626		12,010
UBS AG	760		86,055		83,372			120		13,588		13,164
SLM Corporation	1,820		96,592		96,314			300		16,034		15,876
			568,184		590,401	6.75	%			87,894		91,111	6.32	%
Health Services
UnitedHealth Group, Inc.	980		62,486		43,884	0.50	%	180		11,477		8,060	0.56	%
Insurance
American International Group, Inc.	740		50,719		43,697	0.50	%	120		8,302		7,086	0.49	%
Leisure & Tourism
Carnival Corporation	860		44,298		35,896			140		7,231		5,844
Harrah’s Entertainment, Inc.	980		68,050		69,756			160		11,162		11,389
Las Vegas Sands Corporation *	1,040		67,482		80,974			220		14,516		17,129
MGM Mirage, Inc. *	1,520		67,389		62,016			290		12,901		11,832
Starwood Hotels & Resorts Worldwide, Inc.	1,500		79,274		90,510			220		11,333		13,275
			326,493		339,152	3.88	%			57,143		59,469	4.13	%
Machinery
Deere & Company	810		67,954		67,627			100		8,484		8,349
Rockwell Automation, Inc.	990		71,287		71,290			200		14,296		14,402
			139,241		138,917	1.59	%			22,780		22,751	1.58	%
Manufacturing
Cooper Industries, Ltd. Class A	340		18,885		31,593	0.36	%	60		3,927		5,575	0.39	%
Medical & Health Products
Allergan, Inc.	340		24,364		36,468			60		4,300		6,436
Amgen, Inc. *	2,320		146,081		151,334			390		24,693		25,440
Celgene Corporation *	2,460		88,313		116,678			410		14,718		19,446
C R Bard	750		52,131		54,945			120		8,328		8,791
DENTSPLY International, Inc.	1,320		76,004		79,992			220		12,663		13,332
Eli Lilly and Company	2,230		128,954		123,252			370		22,258		20,450
Genzyme Corporation *	2,570		145,353		156,898			430		24,724		26,251
Gilead Sciences Inc. *	1,730		90,891		102,347			290		15,114		17,156
Johnson & Johnson	3,310		190,149		198,335			530		30,169		31,758
Medtronic, Inc.	2,760		146,408		129,499			460		24,301		21,583
Roche Holdings, Ltd. ADR *	1,300		97,039		107,237			200		14,929		16,498
St. Jude Medical, Inc. *	1,810		73,765		58,680			300		12,220		9,726
Wyeth	3,970		155,841		176,308			660		25,459		29,311
			1,415,293		1,491,973	17.05	%			233,876		246,178	17.08	%

See accompanying notes to financial statements.

5

Schedule of Investments (continued)

June 30, 2006

(Unaudited)

	Number Of Shares	Series Q (Qualified)					% of Net Assets		Number Of Shares	Series N (Non-Qualified)				% of Net Assets
		Cost		Market Value						Cost		Market Value
Common Stocks-Continued
Semiconductors
Intel Corporation	9,740	$	232,935	$	184,573				1,620	$	38,629	$	30,699
Marvell Technology Group, Ltd. *	1,820		100,702		80,681				300		16,592		13,299
Xilinx, Inc.	3,680		103,475		83,352				610		17,283		13,817
			437,112		348,606		3.98	%			72,504		57,815	4.01	%
Stores
Chico’s FAS, Inc. *	1,850		75,539		49,913				310		12,647		8,364
CVS Corporation	3,900		97,539		119,730				650		16,607		19,955
Home Depot, Inc.	2,330		98,071		83,391				400		16,776		14,316
Kohl’s Corporation *	1,300		68,488		76,856				170		8,962		10,050
Lowe’s Companies, Inc.	710		37,820		43,076				120		6,892		7,280
Staples, Inc.	2,800		72,466		68,096				460		11,904		11,187
Target Corporation	1,820		70,372		88,943				300		11,562		14,661
W.W. Grainger, Inc.	100		7,268		7,523
Williams Sonoma, Inc. *	1,870		78,843		63,673				310		12,917		10,555
Wal-Mart Stores, Inc.	4,610		229,948		222,064				770		38,168		37,091
			836,354		823,265		9.41	%			136,435		133,459	9.26	%
Telecommunications
Amdocs, Ltd ADR *	4,370		127,219		159,942				720		21,105		26,352
America Movil SA	1,550		51,433		51,553				260		8,627		8,648
Cisco Systems, Inc. *	13,520		233,219		264,046				2,250		39,155		43,942
Corning Inc. *	7,420		112,507		179,490				1,210		19,632		29,270
Juniper Networks, Inc. *	1,280		29,255		20,467				210		4,800		3,358
			553,633		675,498		7.72	%			93,319		111,570	7.74	%
Transportation
FedEx Corporation	1,230		113,716		143,738				210		19,975		24,541
Norfolk Southern Corporation	390		21,631		20,756				60		3,330		3,193
			135,347		164,494		1.88	%			23,305		27,734	1.92	%
Total Common Stocks			8,378,940		8,451,085		96.60	%			1,366,509		1,373,204	95.28	%
Short Term Investment
AIG Funding, Inc.
5.26% due July 3, 2006	308,000		307,865		307,865		3.52	%
Total Investments		$	8,686,805		8,758,950		100.12	%		$	1,366,509		1,373,204	95.28	%
Other Assets Less Liabilities					(10,833	)	-0.12	%					68,074	4.72	%
Total Net Assets				$	8,748,117		100.00	%				$	1,441,278	100.00	%

* Non – income producing security.

See accompanying notes to financial statements.

6

Supplementary Information

Selected Per Unit Data and Ratios

(Unaudited)

	Six Months Ended June 30, 2006			Years Ended December 31
				2005			2004			2003			2002			2001
PER UNIT DATA (a)
Series Q (Qualified)
Investment income	$	0.064		$	0.111		$	0.155		$	0.093		$	0.099		$	0.094
Expenses		0.106			0.209			0.192			0.172			0.180			0.226
Net investment loss		(0.042	)		(0.098	)		(0.037	)		(0.079	)		(0.081	)		(0.132	)
Net realized and unrealized losses on investments		(0.400	)		0.269			0.760			2.272			(4.481	)		(4.577	)
Net increase (decrease) in net asset value		(0.442	)		0.171			0.723			2.193			(4.562	)		(4.709	)
Accumulation unit net asset value:
Beginning of period		12.382			12.211			11.488			9.295			13.857			18.566
End of period	$	11.940		$	12.382		$	12.211		$	11.488		$	9.295		$	13.857
Series N (Non-Qualified)
Investment income	$	0.055		$	0.109		$	0.173		$	0.087		$	0.094		$	0.090
Expenses		0.122			0.253			0.260			0.199			0.204			0.251
Net investment loss		(0.067	)		(0.144	)		(0.087	)		(0.112	)		(0.110	)		(0.161	)
Net realized and unrealized losses on investments		(0.380	)		0.358			0.735			2.241			(4.563	)		(5.177	)
Net decrease in net asset value		(0.447	)		0.214			0.648			2.129			(4.673	)		(5.338	)
Accumulation unit net asset value:
Beginning of period		11.993			11.779			11.131			9.002			13.675			19.013
End of period	$	11.546		$	11.993		$	11.779		$	11.131		$	9.002		$	13.675

(a) The per unit amounts represent the proportionate distribution of actual investment results as related to the change in unit net asset values for the period and do not include any sales loads.

	Six Months Ended June 30, 2006		Years Ended December 31
			2005		2004		2003		2002		2001
RATIOS
Series Q (Qualified)
Operating expenses to average accumulation fund balance	1.65	%*	1.65	%	1.65	%	1.67	%	1.63	%	1.55	%
Net investment loss to average accumulation fund balance	(0.65	%)*	(0.77	%)	(0.31	%)	(0.77	%)	(0.73	%)	(0.90	%)
Portfolio turnover rate	53	%	74	%	94	%	83	%	102	%	79	%
Accumulation units outstanding at the end of the period (in thousands)	733		768		797		826		859		925
Series N (Non-Qualified)
Operating expenses to average accumulation fund balance	2.02	%*	2.01	%	1.97	%	2.00	%	1.91	%	1.70	%
Net investment loss to average accumulation fund balance	(1.10	%)*	(1.14	%)	(0.66	%)	(1.12	%)	(1.03	%)	(1.09	%)
Portfolio turnover rate	53	%	74	%	93	%	83	%	104	%	78	%
Accumulation units outstanding at the end of the period (in thousands)	125		128		136		156		163		182

* Annualized

See accompanying notes to financial statements.

7

Notes to Financial Statements

June 30, 2006

(Unaudited)

1. Organization

The Paul Revere Variable Annuity Contract Accumulation Fund (“the Fund”) is a separate account of The Paul Revere Variable Annuity Insurance Company (“Paul Revere Variable”), and is registered under the Investment Company Act of 1940 as an open-end diversified investment company. Paul Revere Variable is a wholly-owned subsidiary of The Paul Revere Life Insurance Company (“Paul Revere Life”) which in turn is wholly-owned by The Paul Revere Corporation which is wholly-owned by UnumProvident Corporation, formerly Provident Companies, Inc. (“Provident”). The Fund is the investment vehicle for Paul Revere Variable’s tax-deferred group annuity contracts.

2. Accounting policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in those statements and accompanying notes. Actual results may differ from such estimates.

Common stocks are stated at market values which are based on the last sales prices at June 30, 2006, as reported on national security exchanges or the closing bid prices for unlisted securities as reported by investment dealers. Short-term notes are stated at amortized cost which approximates market value. Unrealized investment gains and losses are included in contract owners’ equity. Realized gains and losses on investments sold are determined on the basis of specific identification of investments. Security transactions are accounted for on the day after the securities are purchased or sold. Dividend income is recorded on the ex-dividend date. Interest income is accrued on a daily basis.

The Fund does not distribute net investment income and net realized capital gains through dividends to contract owners. The allocation of net investment income and net realized capital gains occurs automatically in the daily determination of unit net asset values. They are, therefore, included in the value of the contracts in force and in payments to contract owners.

Contract owners’ equity is comprised of two components. Deferred contracts terminable by owner represent amounts attributable to contracts which have not yet annuitized. Currently payable contracts include amounts equivalent to the annuity reserves relating to contracts with current annuities. Annuity reserves are computed for currently payable contracts according to the 1900 Progressive Annuity Mortality Table. The assumed interest rate is either 3.5% or 5% according to the option elected by the annuitant at the time of conversion. Paul Revere Variable bears all the mortality risk associated with these contracts.

3. Investment advisor

Paul Revere Variable acts as investment advisor and underwriter to the Fund and provides mortality and expense guarantees to holders of variable annuity contracts. For these services, Paul Revere Variable receives mortality and expense risk fees and investment management and advisory service fees as shown on the statement of operations which, on an annual basis, will not exceed 2% of the average daily net asset value of the Fund.

Certain administrative services of the Fund are provided by The Variable Annuity Life Insurance Company (“VALIC”) under a contract dated May 15, 1998. These services include processing of unit transactions and daily unit value calculations subsequent to December 1, 1998 as well as accounting and other services.

4. Investment sub-advisor

Under an investment sub-advisory agreement with MFS Institutional Advisors, Inc. (“MFSI”), MFSI provides investment management services to Paul Revere Variable for a fee which, on an annual basis, will equal 0.35% of the average daily net assets of each series of the Fund. This fee is borne by Paul Revere Variable only and does not represent an additional charge to the Fund.

8

Notes to Financial Statements (continued)

June 30, 2006

(Unaudited)

5. Federal income taxes

The Fund’s operations are included with those of Paul Revere Variable, which is taxed as a life insurance company under the Internal Revenue Code and is included in a consolidated federal tax return filed by UnumProvident Corporation. In the opinion of Paul Revere Variable management, current law provides that investment income and capital gains from assets maintained in the Fund for the exclusive benefit of the contract owners are generally not subject to federal income tax. However, to the extent that Paul Revere Variable incurs federal income taxes based on the income from the Fund’s assets, the Fund will be charged. No charges for federal income taxes have been made since the inception of the Fund.

6. Security transactions

The aggregate cost of securities purchased and proceeds of securities sold, other than securities with maturities of one year or less, were as follows:

	Series Q (Qualified)				Series N (Non-Qualified)
	Purchases		Sales		Purchases		Sales
June 30, 2006	$	4,859,353	$	5,646,733	$	781,510	$	879,589
December 31, 2005	$	6,989,860	$	7,323,795	$	1,130,222	$	1,239,710

At June 30, 2006, net unrealized appreciation of investments in Series Q, amounting to $72,145, consisted of unrealized gains of $546,312 and unrealized losses of $474,167, net unrealized appreciation of investments in Series N, amounting to $6,695, consisted of unrealized gains of $86,264 and unrealized losses of $79,569.

7. Accumulation units

The change in the number of accumulation units outstanding were as follows:

	Series Q (Qualified)
	Six Months Ended June 30, 2006	Year Ended December 31, 2005
Units outstanding at beginning of period	767,596	796,795
Units withdrawn from contracts:
Annuity payments	9,960	20,372
Terminations and withdrawals	24,956	8,827
Net units withdrawn	34,916	29,199
Units outstanding at end of period	732,680	767,596
	Series N (Non-Qualified)
	Six Months Ended June 30, 2006	Year Ended December 31, 2005
Units outstanding at beginning of period	127,504	135,576
Units withdrawn from contracts:
Annuity payments	2,230	4,745
Terminations and withdrawals	446	3,492
Net units withdrawn	2,676	(8,072	)
Units outstanding at end of period	124,828	127,504

9

Item 2. Code of Ethics.

(a) The Registrant has adopted a Code of Ethics that applies to its principal executive officer, principal financial officer and principal accounting officer. A copy of the Registrant’s Code of Ethics is filed herewith as Exhibit 10(a)(1).

(b) During the period covered by this report, no amendments were made to the provisions of the Code of Ethics described in 2(a) above.

(c) During the period covered by this report, no implicit or explicit waivers of the provisions of the Code of Ethics described in 2(a) above were granted.

Item 3. Audit Committee Financial Expert.

The Fund has assets of under $12 million. It has no audit committee and no audit committee financial expert. The Board of Managers of the Fund consists of independent directors that control 3/5 of the Board. The Board receives quarterly reports on the transactions in the Fund. Because of the nature of the Fund’s business there are no sensitive accounting estimates used in preparation of the financial statements of the Fund.

Item 4. Principal Accountant Fees and Services.

All audit and other fees paid to the auditors for work related to the Fund are paid by UnumProvident and are not charged to or paid from the Fund.

Audit Fees – Ernst & Young LLP billed UnumProvident $16,100.00 for the audit of the financial statements of the Fund for 2005, and $15,100.00 for the audit of the financial statements of the Fund for 2004.

Audit-Related Fees – The aggregate fees for audit-related services rendered by Ernst & Young LLP to the Fund, the investment adviser or any entity controlling, controlled by or under common control with the investment adviser in 2005 and 2004 for such services were $0.00 and $0.00.

Tax Fees – The aggregate fees related to tax compliance, tax advice and tax planning services to the Fund for fiscal years ended December 31, 2005, and December 31, 2004, were $0.00 and $0.00.

All Other Fees – The aggregate fees rendered by Ernst & Young LLP to the Fund, the investment adviser or any entity controlling, controlled by or under common control with the investment adviser, or UnumProvident for such services to the Fund in 2005 and 2004 were $0.00 and $0.00.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

Schedule of investments is included as of the close of the reporting period as part of the report to shareholders filed under Item 1 of this Form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

REGISTRANT PURCHASES OF EQUITY SECURITIES

Period	(a) Total Number of Shares (or Units) Purchased	(b) Average Price Paid per Share (or Unit)	(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
Month #1 (identify beginning and ending dates)
Month #2 (identify beginning and ending dates)
Month #3 (identify beginning and ending dates)
Month #4 (identify beginning and ending dates)
Month #5 (identify beginning and ending dates)
Month #6 (identify beginning and ending dates)
Total

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a) Within the 90-day period prior to the filing of this report, the Registrant’s management, including the person serving as both the Registrant’s Chief Executive Officer and Chief Financial Officer conducted an evaluation of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures as defined in Investment Company Act Rule 30a-3(c). Based on that evaluation, the Chief Executive Officer/Chief Financial Officer concluded that the Registrant’s disclosure controls and procedures were effective as of the date of that evaluation.

(b) No change in the Registrant’s internal control over financial reporting that materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting, occurred during the Registrant’s most recent second fiscal half-year.

Item 12. Exhibits.

The following exhibits are attached to this Form N-CSR:

(1) Code of Ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, attached hereto as Exhibit 10(a)(1).

(2) Certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 C.F.R. 270.30a-2(a)), attached hereto as Exhibit 31.

(3) Certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(b) under the Act (17 C.F.R. 270.30a-2(b)), attached hereto as Exhibit 32.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

The Paul Revere Variable Annuity

Contract Accumulation Fund

By (Signature and Title):	/s/ Donald E. Boggs
	Donald E. Boggs, Chairman, Board of Managers
	Signing in the capacity of Chief Executive Officer and Chief Financial Officer

Date: August 29, 2006.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following person on behalf of the Registrant and in the capacities and on the dates indicated.

By (Signature and Title):	/s/ Donald E. Boggs
	Donald E. Boggs, Chairman, Board of Managers
	Signing in the capacity of Chief Executive Officer and Chief Financial Officer

Date: August 29, 2006.