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ALLOCATOR 2000 ANNUITY
ACACIA NATIONAL LIFE INSURANCE COMPANY
Supplement to Prospectus dated May 1, 1999
The PORTFOLIO ANNUAL EXPENSES chart at page 6 of the prospectus is corrected so
that expenses for three Portfolios of the Calvert Variable Series, Inc. are as
follows:
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OTHER TOTAL PORTFOLIO
PORTFOLIO MANAGEMENT FEES EXPENSES ANNUAL EXPENSES
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Calvert Social Small Cap Growth Portfolio 1.00% 0.33% 1.33%1
Calvert Social Mid Cap Growth Portfolio 0.90% 0.16% 1.06%1
Calvert Social International Equity Portfolio 1.10% 0.70% 1.80%2
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This prospectus is further supplemented at page 14 to restate the Neuberger
Berman Advisers Management Trust investment objectives and policies of the
Neuberger Berman Limited Maturity Bond Portfolio and the Neuberger Berman Growth
Portfolio to read as follows:
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
The Variable Account has two Sub-accounts that invest exclusively in shares of
Portfolios of the Neuberger Berman Advisers Management Trust ("AMT").
The Income and Growth Sub-accounts of the Variable Account invest in shares of
the Limited Maturity Bond Portfolio and Growth Portfolio, respectively, of AMT.
The Neuberger Berman Limited Maturity Bond Portfolio. The investment objective
of the Limited Maturity Bond Portfolio is to provide the highest current income
consistent with low risk to principal and liquidity; and secondarily, total
return. To pursue these goals, the Portfolio invests mainly in investment-grade
bonds and other debt securities from U.S. government and corporate issuers.
These may include mortgage- and asset-backed securities. To enhance yield and
add diversification, the Portfolio may invest up to 10% of net assets in
securities that are below investment grade, provided that, at the time of
purchase, they are rated at least B by Moody's or Standard and Poor's or, if
unrated by either of these, are believed by the manager to be of comparable
quality.
The Portfolio seeks to reduce credit risk by diversifying among many issuers and
different types of securities. Although it may invest in securities of any
maturity, under normal circumstances it maintains an average Portfolio duration
of four years or less. The managers monitor national trends in the corporate and
government securities markets, including a range of economic and financial
factors.
The managers look for securities that appear underpriced compared to securities
of similar structure and credit quality, and securities that appear likely to
have their credit ratings raised. In choosing lower-rated securities, the
managers look for bonds from issuers whose financial health appears
comparatively strong but that are smaller or less well known to investors.
Neuberger Berman Growth Portfolio seeks growth of capital. To pursue this goal,
the Portfolio invests mainly in common stocks of mid-capitalization companies.
The Portfolio seeks to reduce risk by diversifying among many companies and
industries. The managers look for fast-growing companies that are in emerging or
rapidly evolving industries.
Factors in identifying these firms may include:
o above-average growth of earnings
o earnings that have exceeded analysts' expectations
The managers may also look for other characteristics in a company, such as
financial strength, a strong position relative to competitors or a stock price
that is reasonable in light of its growth rate. The managers follow a
disciplined selling strategy, and may drop a stock from the Portfolio when it
reaches a target price, fails to perform as expected, or appears substantially
less desirable than another stock.
The investment manager for the Limited Maturity Bond and Growth Portfolios of
AMT is Neuberger Berman Management Incorporated ("NB Management"). NB Management
retains Neuberger Berman, LLC without cost to AMT, as subadviser to furnish it
with investment recommendations and research information. NB Management provides
investment management services to each Portfolio that include, among other
things, making and implementing decisions and providing facilities and personnel
necessary to operate the Portfolio. NB Management provides administrative
services to each Portfolio that include furnishing similar facilities and
personnel for the Portfolio. With the Portfolio's consent, NB Management is
authorized to subcontract some of its responsibilities under its administration
agreement with the Portfolio to third parties.
The date of this Supplement is June 23, 1999.
