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)	(Zip code)

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, 2007 – June 30, 2007

Item 1. Report to Stockholders.

Semi-Annual Report

June 30, 2007

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

U.S. equity performance, as represented by the broad market index S&P 500, returned +6.96% during the first six months on 2007. Using the Russell indices as a proxy, large cap stocks underperformed mid and small capitalization stocks and growth stocks led value stocks among all market caps (Russell 1000 Growth +8.13% vs. Russell 1000 Value +6.23%; Russell Midcap Growth +10.97% vs. Russell Midcap Value +8.69%; Russell 2000 Growth +9.33% vs. Russell 2000 Value +3.80%).

Against this backdrop, the portfolio underperformed the Russell 1000 Growth Index during the first half of 2007. Stock selection in health care, consumer staples, and financial services and a modest cash position detracted the most from relative performance. Stock selection in retailing, special products and services and an overweighting in energy had a positive impact on relative performance. The portfolio’s philosophy and approach remain consistent. We continue to work closely with our team of fundamental research analysts to identify companies capable of delivering and sustaining above average earnings growth.

We continue to position the portfolio as a style-disciplined large cap growth portfolio diversified across sectors. We are finding a number of companies we view as sustainable growth opportunities in the special products and services sector. Emphasis is placed on data and transaction processors where we are particularly attracted to the “annuity stream” business models. In the overweight healthcare sector we are finding the most attractive opportunities in the pharmaceutical, biotechnology and medical technology industries. We continue to overweight the financial services sector where we are primarily exposed to market sensitive companies. We are generally underweight in the consumer sectors but maintain exposure to several stable globally exposed food and consumer products companies, high-end and uniquely positioned retailers and gaming companies. Overall, we continue to build the portfolio from the bottom up, focusing on large cap companies that seek to deliver sustainable above-average growth to their shareholders.

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

Unum Group paid all expenses relative to the operation of 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, 2006, 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 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.

Information concerning the nominees for re-election, as well as members of the Board of Managers whose terms will continue, follows with the same abbreviations of company names as used previously. Unless the contractowner withholds authorization on the Proxy, it is intended that the interest represented by the Proxy will be voted in favor of the election of the nominees.

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.

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 Unum Group at 1 Fountain Square, Chattanooga, Tennessee 37402. You may also view a description of the Fund’s proxy voting policy and procedures on the SEC’s (Securities and Exchange Commission) website, www.sec.gov.

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

QUARTERLY FILING REQUIREMENTS

In November 2004, the Fund began filing its complete schedule of investments with the Securities and Exchange Commission 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 Unum Group at 1 Fountain Square, Chattanooga, Tennessee 37402. You may also view its complete schedule of investments on Form N-Q on the SEC’s (Securities and Exchange Commission) 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 (800) 718-8824 for contractowners who call to request the SAI.

INFORMATION CONCERNING MEMBERS OF THE BOARD OF MANAGERS

(1) Name, Address,     and Age	(2) Position(s) Held with Fund	(3) Term of Office and Length of Time Served	(4) Principal Occupation(s) During Past 5 Years	(5) Number of Portfolios in Fund Complex Overseen by Director or Nominee for Director	(6) Other Directorships Held by Director or Nominee For Director
H. C. Goodwin (72) 24 Waters Road Sutton, MA 01590	Member, Board of Managers	2007-2010 5 years of service	President of Manufacturers Service Center, Inc.	2	None
Gordon T. Miller (85) 27 Briarwood Circle Worcester, MA 01606	Vice Chairman, Board of Managers	2007-2010 38 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 (77) 770 Salisbury Street Apt. 576 Worcester, MA 01609	Member, Board of Managers	2006-2009 21 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) Name, Address,     and Age	(2) Position(s) Held with Fund	(3) Term of Office and Length of Time Served	(4) Principal Occupation(s) During Past 5 Years	(5) Number of Portfolios in Fund Complex Overseen by Director or Nominee for Director	(6) Other Directorships Held by Director or Nominee For Director
Donald E. Boggs* (62) 1 Fountain Square Chattanooga, TN 37402	Chairman Board of Managers	2007-2010 9 years of service	Retired, Senior Vice President of Unum Group, Chattanooga, Tennessee	2	None
David G. Fussell* (60) 1 Fountain Square Chattanooga, TN 37402	Member, Board of Managers	2006-2009 5 years of service	Senior Vice President of Unum Group, Chattanooga, Tennessee	2	None

* Officers of PRV, (the investment adviser and sponsoring insurance company) and other subsidiaries within the Unum Group 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, 2007

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

Statement of Assets and Liabilities

(Unaudited)

	June 30, 2007
	Series Q (Qualified)		Series N (Non-Qualified)
ASSETS
Investments in securities at market value     (Cost: Series Q - $2,793,098)     (Cost: Series N - $1,258,855)     (see Schedule of Investments)	$	3,029,789	$	1,409,865
Cash		130,709		68,674
Dividends receivable		1,847		867
Total assets		3,162,345		1,479,406
LIABILITIES
Payable to The Paul Revere Variable Annuity Insurance Company		38,197		6,030
Total liabilities		38,197		6,030
TOTAL NET ASSETS	$	3,124,148	$	1,473,376
CONTRACT OWNERS’ EQUITY
Deferred contracts	$	1,561,339	$	675,750
Currently payable contracts		1,562,809		797,626
Total net assets	$	3,124,148	$	1,473,376
ACCUMULATION UNITS OUTSTANDING		242,383		110,581
NET ASSET VALUE PER ACCUMULATION UNIT	$	12.889	$	13.324

See accompanying notes to financial statements.

1

Statement of Operations

(Unaudited)

	June 30, 2007 Series Q (Qualified)
INVESTMENT LOSS
Income:
Dividends	$	29,724
Interest		1,747
Total income		31,471
Expenses:
Mortality and expense risk fees		23,409
Investment management and advisory service fees		11,705
Professional services		6,200
Total expenses		41,314
Net investment loss		(9,843	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments sold		715,706
Net decrease in unrealized appreciation of investments		(581,656	)
Net realized and unrealized gain on investments		134,050
Increase in net assets from operations	$	124,207
	June 30, 2007 Series N (Non-Qualified)
INVESTMENT LOSS
Income:
Dividends	$	7,909
Expenses:
Mortality and expense risk fees		7,272
Investment management and advisory service fees		3,636
Professional services		3,720
Total expenses		14,628
Net investment loss		(6,719	)
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments sold		76,591
Net increase in unrealized appreciation of investments		19,951
Net realized and unrealized gain on investments		96,542
Increase in net assets from operations	$	89,823

See accompanying notes to financial statements.

2

Statements of Changes in Net Assets

(Unaudited)

	Six Months Ended June 30, 2007 Series Q (Qualified)			Year Ended December 31, 2006 Series Q (Qualified)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment loss	$	(9,843	)	$	(50,841	)
Net realized gain on investments		715,706			262,609
Net increase (decrease) in unrealized appreciation of investments		(581,656	)		243,981
Increase in net assets from operations		124,207			455,749
Payments to contract owners:
Annuity payments to contract owners		121,118			240,355
Terminations and withdrawals to contract owners		6,122,237			476,500
Total payments to contract owners		6,243,355			716,855
Total decrease in net assets		(6,119,148	)		(261,106	)
NET ASSETS
Beginning of period		9,243,296			9,504,402
End of period	$	3,124,148		$	9,243,296
	Six Months Ended June 30, 2007 Series N (Non-Qualified)			Year Ended December 31, 2006 Series N (Non-Qualified)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment loss	$	(6,719	)	$	(15,524	)
Net realized gain on investments		76,591			49,257
Net increase in unrealized appreciation of investments		19,951			32,334
Increase in net assets from operations		89,823			66,067
Payments to contract owners:
Annuity payments to contract owners		27,905			52,380
Terminations and withdrawals to contract owners		124,412			6,929
Total payments to contract owners		152,317			59,309
Total decrease in net assets		(62,494	)		(6,758	)
NET ASSETS
Beginning of period		1,535,870			1,529,112
End of period	$	1,473,376		$	1,535,870

See accompanying notes to financial statements.

3

Schedule of Investments

June 30, 2007

(Unaudited)

		Series Q (Qualified)							Series N (Non-Qualified)
Securities of Unaffiliated Companies	Number of Shares	Cost		Market Value		% of Net Assets		Number of Shares	Cost		Market Value		% of Net Assets
Common Stocks
Aerospace & Military Technology
Empresa Brasileira de Aeronautica S.A.	430	$	20,197	$	20,730			200	$	9,394	$	9,642
United Technologies Corporation	770		48,202		54,616			360		19,558		25,535
			68,399		75,346	2.4	%			28,952		35,177	2.4	%
Beverages
Diageo Capital PLC	310		26,167		25,826			145		12,239		12,080
PepsiCo, Inc.	790		46,652		51,232			370		19,708		23,995
			72,819		77,058	2.5	%			31,947		36,075	2.4	%
Broadcasting & Media
News Corporation	1,460		29,382		30,967	1.0	%	680		13,572		14,423	1.0	%
Computer Systems & Services
Adobe Systems, Inc. *	920		36,319		36,938			430		16,451		17,264
Apple, Inc. *	210		14,160		25,628			100		7,235		12,204
Automatic Data Processing, Inc.	250		10,320		12,118			120		5,041		5,816
Citrix Systems, Inc. *	500		16,744		16,835			230		7,755		7,744
Dell, Inc. *	940		24,327		26,837			450		11,551		12,848
Ebay, Inc. *	980		31,091		31,536			460		15,201		14,803
Electronic Arts, Inc. *	260		14,048		12,303			120		6,503		5,678
EMC Corporation *	950		13,078		17,195			440		6,197		7,964
Google, Inc. *	115		46,533		60,188			50		21,160		26,169
International Game Technology	420		17,677		16,674			190		7,384		7,543
Microsoft Corporation	2,390		65,594		70,433			1,100		30,143		32,417
Network Appliance, Inc. *	460		16,835		13,432			210		7,694		6,132
Oracle Corporation *	4,950		85,513		97,565			2,300		34,559		45,333
			392,239		437,682	14.0	%			176,874		201,915	13.7	%
Conglomerate
Danaher Corporation	630		45,120		47,565			292		20,889		22,046
General Electric Company	2,610		90,642		99,911			1,210		42,266		46,319
			135,762		147,476	4.7	%			63,155		68,365	4.6	%
Consumer Goods & Services
Altria Group, Inc.	350		21,932		24,549			170		10,262		11,924
Bayer AG	230		16,287		17,319			100		7,081		7,530
Colgate-Palmolive Company	320		21,337		20,752			150		9,326		9,727
Comcast Corporation *	1,020		29,547		28,682			475		13,864		13,357
NIKE, Inc.	730		32,236		42,552			340		14,572		19,819
Procter & Gamble Company	1,320		75,193		80,771			610		34,974		37,326
			196,532		214,625	6.9	%			90,079		99,683	6.8	%
Education
Apollo Group, Inc. *	200		10,021		11,686	0.4	%	100		5,002		5,843	0.4	%
Electronics
Harman International	280		29,015		32,704	1.1	%	130		13,398		15,184	1.1	%
Energy Services
Exxon Mobil Corporation	300		20,227		25,164			145		9,835		12,163
GlobalSantaFe Corporation	630		33,492		45,518			290		11,636		20,952
Halliburton Company	440		15,518		15,180			210		7,413		7,245
Noble Corporation	450		36,359		43,884			210		16,087		20,479
Schlumberger Limited	320		20,384		27,181			150		9,533		12,741
Praxair, Inc.	540		33,523		38,875			250		15,650		17,998
Weatherford International Limited *	220		11,889		12,153			100		5,404		5,524
			171,392		207,955	6.7	%			75,558		97,102	6.6	%

See accompanying notes to financial statements.

4

Schedule of Investments (continued)

June 30, 2007

(Unaudited)

		Series Q (Qualified)							Series N (Non-Qualified)
	Number Of Shares	Cost		Market Value		% of Net Assets		Number Of Shares	Cost		Market Value		% of Net Assets
Common Stocks-Continued
Financial Institutions
American Express Company	610	$	31,624	$	37,320			280	$	14,301	$	17,130
Bank of New York Company, Inc.	620		26,142		25,693			288		12,192		11,935
Charles Schwab Corporation	1,940		36,391		39,809			900		15,786		18,468
Fidelity National Information	390		18,407		21,169			180		8,566		9,770
Goldman Sachs Group, Inc.	145		30,147		31,428			66		13,740		14,306
Moody’s Corporation	190		11,945		11,818			90		5,630		5,598
Morgan Stanley	320		25,892		26,842			150		10,395		12,582
UBS AG	930		55,139		55,809			430		25,475		25,804
State Street Corporation	790		53,519		54,036			370		24,203		25,308
Western Union Company	1,200		24,969		24,996			560		12,000		11,665
			314,175		328,920	10.5	%			142,288		152,566	10.4	%
Food Services
Nestle SA	440		39,424		41,824	1.4	%	205		18,164		19,486	1.3	%
Health Services
UnitedHealth Group, Inc.	390		24,171		19,945	0.6	%	180		11,477		9,205	0.6	%
Insurance
Aflac, Inc.	300		15,724		15,420	0.5	%	140		7,338		7,196	0.5	%
Leisure & Tourism
Royal Caribbean Cruises Limited	590		24,199		25,358	0.8	%	270		11,082		11,605	0.8	%
Machinery
Rockwell Automation, Inc.	550		33,145		38,192	1.2	%	260		16,172		18,054	1.2	%
Manufacturing
Precision Castparts Corporation	270		23,755		32,767	1.0	%	120		9,117		14,563	1.0	%
Medical & Health Products
Advanced Medical Optics *	960		41,150		33,485			450		19,285		15,696
Allergan, Inc.	840		45,803		48,418			380		20,703		21,903
Amgen, Inc. *	780		55,157		43,126			370		24,191		20,457
Baxter International, Inc.	285		12,583		16,057			132		5,214		7,437
Cardinal Health, Inc.	250		18,036		17,660			120		8,668		8,477
Celgene Corporation *	400		19,257		22,932			180		8,371		10,319
DENTSPLY International, Inc.	590		18,418		22,573			280		8,481		10,713
Genentech, Inc. *	215		15,750		16,267			100		7,319		7,566
Genzyme Corporation *	1,130		75,805		72,772			532		31,458		34,261
Johnson & Johnson	1,210		74,236		74,560			560		33,292		34,507
Medtronic, Inc.	1,380		74,622		71,567			640		33,841		33,190
Millipore Corporation *	230		17,030		17,271			108		8,000		8,110
Roche Holdings AG	730		60,105		64,745			340		27,965		30,155
St Jude Medical, Inc. *	420		16,898		17,426			190		7,716		7,883
Wyeth	820		41,782		47,019			380		17,777		21,789
			586,632		585,878	18.7	%			262,281		272,463	18.5	%
Semiconductors
Intel Corporation	4,410		103,864		104,782			2,110		49,345		50,134
KLA- Tencor Corporation	600		32,083		32,970			280		14,970		15,386
Taiwan Semiconductor	2,935		31,390		32,662			1,377		14,730		15,324
			167,337		170,414	5.5	%			79,045		80,844	5.5	%

See accompanying notes to financial statements.

5

Schedule of Investments (continued)

June 30, 2007

(Unaudited)

		Series Q (Qualified)							Series N (Non-Qualified)
	Number Of Shares	Cost		Market Value		% of Net Assets		Number Of Shares	Cost		Market Value		% of Net Assets
Common Stocks-Continued
Stores
CVS/Caremark Corporation	1,460	$	48,411	$	53,217			680	$	21,210	$	24,786
Family Dollar Stores	1,020		31,006		35,006			480		14,535		16,474
Lowe’s Companies, Inc.	1,090		33,716		33,452			510		15,247		15,652
Nordstrom, Inc.	160		8,841		8,179			70		3,877		3,578
Staples, Inc.	1,380		36,747		32,747			640		16,070		15,187
Target Corporation	870		44,624		55,332			400		17,344		25,440
WW Grainger, Inc.	280		21,626		26,054			130		10,043		12,097
			224,971		243,987	7.8	%			98,326		113,214	7.7	%
Telecommunications
Amdocs Limited *	1,760		57,936		70,083			825		25,727		32,852
America Movil S.A.B. de C.V.	820		33,682		50,783			380		15,263		23,533
Cisco Systems, Inc. *	3,570		73,017		99,424			1,680		31,928		46,788
Jupiter Networks *	660		15,794		16,612			300		7,179		7,551
Qualcomm, Inc.	380		14,774		16,488			180		6,806		7,810
			195,203		253,390	8.1	%			86,903		118,534	8.0	%
Transportation
FedEx Corporation	160		18,991		17,755			80		8,928		8,878
United Parcel Service	280		19,810		20,440			130		9,197		9,490
			38,801		38,195	1.2	%			18,125		18,368	1.2	%
Total Common Stocks			2,793,098		3,029,789	97.0	%			1,258,855		1,409,865	95.7	%
Total Investments		$	2,793,098	$	3,029,789	97.0	%		$	1,258,855	$	1,409,865	95.7	%
Other assets Less Liabilities					94,359	3.0	%					63,511	4.3	%
Total Net Assets				$	3,124,148	100.0	%				$	1,473,376	100.0	%

* Non – income producing security.

See accompanying notes to financial statements.

6

Financial Highlights

Selected Per Unit Data and Ratios

(Unaudited)

	Six Months Ended June 30, 2007			Years Ended December 31
				2006			2005			2004			2003
PER UNIT DATA (a)
Series Q (Qualified)
Investment income	$	0.091		$	0.136		$	0.111		$	0.155		$	0.093
Expenses		0.117			0.207			0.209			0.192			0.172
Net investment loss		(0.026	)		(0.071	)		(0.098	)		(0.037	)		(0.079	)
Net realized and unrealized gains (losses) on investments		(0.096	)		0.700			0.269			0.760			2.272
Net increase (decrease) in net asset value		(0.122	)		0.629			0.171			0.723			2.193
Accumulation unit net asset value:
Beginning of period		13.011			12.382			12.211			11.488			9.295
End of period	$	12.889		$	13.011		$	12.382		$	12.211		$	11.488
Total Return		(0.94	%)		5.08	%		1.40	%		6.29	%		23.59	%
Series N (Non-Qualified)
Investment income	$	0.070		$	0.119		$	0.109		$	0.173		$	0.087
Expenses		0.129			0.244			0.253			0.260			0.199
Net investment loss		(0.059	)		(0.125	)		(0.144	)		(0.087	)		(0.112	)
Net realized and unrealized gains on investments		0.851			0.664			0.358			0.735			2.241
Net increase in net asset value		0.792			0.539			0.214			0.648			2.129
Accumulation unit net asset value:
Beginning of period		12.532			11.993			11.779			11.131			9.002
End of period	$	13.324		$	12.532		$	11.993		$	11.779		$	11.131
Total Return		6.32	%		4.49	%		1.82	%		5.82	%		23.65	%

(a) For a unit outstanding throughout the period. Additionally, 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, 2007		Years Ended December 31
			2006		2005		2004		2003
RATIOS
Series Q (Qualified)
Operating expenses to average accumulation fund balance	1.70	%*	1.64	%	1.65	%	1.65	%	1.67	%
Net investment loss to average accumulation fund balance	(0.41	%)*	(0.56	%)	(0.77	%)	(0.31	%)	(0.77	%)
Portfolio turnover rate	32	%	81	%	74	%	94	%	83	%
Accumulation units outstanding at the end of the year (in thousands)	242		710		768		797		826
Series N (Non-Qualified)
Operating expenses to average accumulation fund balance	1.99	%*	2.01	%	2.01	%	1.97	%	2.00	%
Net investment loss to average accumulation fund balance	(0.91	%)*	(1.03	%)	(1.14	%)	(0.66	%)	(1.12	%)
Portfolio turnover rate	35	%	83	%	74	%	93	%	83	%
Accumulation units outstanding at the end of the year (in thousands)	111		123		128		136		156

* Annualized

See accompanying notes to financial statements.

7

Notes to Financial Statements

June 30, 2007

(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. The Fund consists of two series. Series Q is applicable to contracts which were afforded special tax treatment under the Internal Revenue Code and are commonly referred to as “qualified contracts”. Series N is applicable to all other contracts and are commonly referred to as “non-qualified 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, 2007, as reported on national security exchanges. 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 statements of operations which, on an annual basis, will not exceed 2% of the average daily net asset value of the Fund. The current rate for such fees is 1.50% 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, 2007

(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 Paul Revere Life. 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
Six Months Ended June 30, 2007	$	1,788,520	$	7,925,670	$	504,068	$	680,508

At June 30, 2007, net unrealized appreciation of investments in Series Q, amounting to $236,691, consisted of unrealized gains of $282,398 and unrealized losses of $45,707, net unrealized appreciation of investments in Series N, amounting to $151,010, consisted of unrealized gains of $167,076 and unrealized losses of $16,066.

7. Accumulation units

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

	Series Q (Qualified)
	Six Months Ended June 30, 2007		Year Ended December 31, 2006
Units outstanding at beginning of period	710,397		767,596
Units withdrawn from contracts:
Annuity payments	9,421		19,568
Terminations and withdrawals	458,593		37,631
Net units withdrawn	468,014		57,199
Contract units withdrawn in excess of units credited	(468,014	)	(57,199	)
Units outstanding at end of period	242,383		710,397
	Series N (Non-Qualified)
	Six Months Ended June 30, 2007		Year Ended December 31, 2006
Units outstanding at beginning of period	122,558		127,504
Units withdrawn from contracts:
Annuity payments	2,152		4,420
Terminations and withdrawals	9,825		526
Net units withdrawn	11,977		4,946
Contract units withdrawn in excess of units credited	(11,977	)	(4,946	)
Units outstanding at end of period	110,581		122,558

9

Item 2. Code of Ethics.

Not applicable to Semi-Annual Report.

Item 3. Audit Committee Financial Expert.

Not applicable to Semi-Annual Report.

Item 4. Principal Accountant Fees and Services.

Not applicable to Semi-Annual Report.

Item 5. Audit Committee of Listed Registrants.

Not applicable to Registrant.

Item 6. Schedule of Investments.

The Registrant’s Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this Form N-CSR.

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

Not applicable to Registrant.

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

Not applicable to Registrant.

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

Not applicable to Registrant.

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

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Managers.

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) There was no change in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period that has materially affected, or is reasonably likely to materially effect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

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

(1) Not applicable to Semi-Annual Report.

(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 12(a)(2)

(3) Not applicable to Registrant.

(b) 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 12(b).

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 24, 2007.

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 24, 2007.