ACACIA NATIONAL VARIABLE ANNUITY SEPARATE ACCOUNT II
N-30D, 1998-09-14
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                                THE ACACIA GROUP
                              7315 Wisconsin Avenue
                            Bethesda, Maryland 20814




September 11,  1998


Via EDGAR Transmission

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549

    Re:      Acacia National Variable Annuity Separate Account II
             Semi-Annual Report on Form N-30D
             File No. 811-07627

Ladies and Gentlemen:

         Pursuant  to Rule  30b2-1  under the  Investment  Company  Act of 1940,
enclosed  for filing via EDGAR  transmission  on behalf of the  above-referenced
registrant is a  semi-annual  report on Form N-30D for the period ended June 30,
1998,  which was sent to  policyholders  on September 1, 1998.  The  information
required to be contained in this report is  incorporated  by reference  from the
previously filed semi-annual  reports of the underlying funds of the registrant,
as indicated.

         If you should have any questions regarding the foregoing, please do not
hesitate to contact me at (301) 280-1034.

                                              Sincerely yours,


                                              /s/ Ellen Jane Abromson

                                              Ellen Jane Abromson

Enclosed:
    As stated



<PAGE>



As Filed with the Securities and Exchange Commission on September 11, 1998.



              Acacia National Variable Annuity Separate Account II
                    of Acacia National Life Insurance Company
                        Semi-Annual Report on Form N-30D


         This  semi-annual  report  on Form  N-30D is being  filed on  behalf of
Acacia National  Variable Annuity  Separate Account II (File No.  811-07627) for
the  period  ended  June 30,  1998.  Included  in this  filing is the  letter to
policyholders  dated September 1, 1998, which accompanied the semi-annual report
as mailed to policyholders on September 1, 1998. The information  required to be
contained  in this  report  is  incorporated  by  reference  from the  following
previously filed semi-annual reports for the underlying funds of the registrant:

1.       The Alger American Fund, File No. 811-05550,  Form N-30D,  Filed August
         18, 1998, Accession No. 0000930413-98- 000739.

2.       Calvert  Variable Series Inc., File No.  811-03591,  Form N- 30D, Filed
         September 10, 1998, Accession No. 0000708950- 98-000007.

3.       Dreyfus Stock Index Fund, File No. 811-05719,  Form N-30D, Filed August
         25, 1998, Accession No. 0000846800-98- 000007.

4.       Neuberger & Berman Advisers Management Trust Growth Portfolio, File No.
         811-04255,   Form  N-30D,   Filed  August  27,  1998,   Accession   No.
         0001047469-98-032723.

5.       Neuberger & Berman  Advisers  Management  Trust  Limited  Maturity Bond
         Portfolio,  File No.  811-04255,  Form N-30D,  Filed  August 27,  1998,
         Accession No. 0001047469-98- 032722.

6.       Oppenheimer  Variable Account Funds,  File No.  811-04108,  Form N-30D,
         Filed August 26, 1998, Accession No. 0001047469-98-032753.




<PAGE>



7.       The Strong Discovery Fund II, Strong Variable  Insurance  Funds,  Inc.,
         File No. 811-06553,  Form N-30D,  Filed August 31, 1998,  Accession No.
         0000883644-98-000024.

8.       The Strong  International  Stock  Fund II,  Strong  Variable  Insurance
         Funds,  Inc., File No. 811-06553,  Form N-30D, Filed September 2, 1998,
         Accession No. 0000883644-98- 000033.


9.       Worldwide Hard Assets Fund, Van Eck Worldwide Insurance Trust, File No.
         811-05083,   Form  N-30D,   Filed  August  13,  1998,   Accession   No.
         0000950130-98-004095.




<PAGE>



THE ACACIA GROUP
7315 Wisconsin Avenue
Bethesda, Maryland 20814




September 1, 1998





Dear Allocator 2000 and Allocator 2000 Annuity Policyholder:

Enclosed are the  semi-annual  reports for the funds  available  through  Acacia
National's  Variable Life Insurance Policy,  Allocator 2000 and Variable Annuity
Policy, Allocator 2000 Annuity. These reports are sent on a semi-annual basis to
policyholders  of record on June 30 and December 31 of the  respective  purchase
year.

In an effort to provide you with complete  information  pertaining to the funds,
we have included the semi-annual  reports for all of the funds available and not
just those you currently have elected to allocate funds into.

Should you have any questions,  please contact your registered representative or
the Variable Product Service Center at 1- 800-369-9407.



Sincerely,

/s/ Michele Dupre

Michele Dupre
2nd Vice President
Marketing Communications






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