<PAGE>
Annuity Investors(R) Variable Account B
of
Annuity Investors (R) Life Insurance Company
for
The Commodore (R) Variable Annuities
The Commodore The Commodore The Commodore
Navigator (Service Mark) Advantage (Service Mark) Independence (Service Mark)
June 30, 1999
Semiannual Report to Contract Owners
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Table of Contents
Page
Letter from the President............................................ 2
Portfolio Semiannual Reports
Tab
Bankers Trust Company........................................ I
EAFE(R) Equity Index Fund
Equity 500 Index Fund
Small Cap Index Fund
Dreyfus Portfolios........................................... II
Dreyfus Variable Investment Fund
Capital Appreciation Portfolio
Growth and Income Portfolio
Small Cap Portfolio
Money Market Portfolio
The Dreyfus Socially Responsible Growth Fund, Inc.
Dreyfus Stock Index Fund
Strong Capital Management, Inc. .............................III
Strong Opportunity Fund II, Inc.
Strong Variable Insurance Funds, Inc.
Strong Mid Cap Growth Fund II
Janus Aspen Series........................................... IV
Growth Portfolio
Aggressive Growth Portfolio
Capital Appreciation Portfolio
International Growth Portfolio
Worldwide Growth Portfolio
Balanced Portfolio
INVESCO Variable Investment Funds, Inc. ..................... V
High Yield Portfolio
Equity Income Portfolio
Total Return Portfolio
PBHG Insurance Series Fund, Inc. ............................ VI
PBHG Large Cap Growth Portfolio
PBHG Growth II Portfolio
PBHG Technology & Communications Portfolio
Morgan Stanley Dean Witter Universal Funds, Inc. ............VII
U.S. Real Estate Portfolio
Fixed Income Portfolio
Emerging Markets Equity Portfolio
Mid Cap Value Portfolio
Value Portfolio
The Timothy Plan Small-Cap Variable Series...................VIII
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Dear Commodore Contract Owner:
I am pleased to present you with the June 30, 1999 Semiannual Reports
for each of the twenty-nine Portfolios offered through the sub-accounts of
Annuity Investors(R) Variable Account B. The Portfolios are managed by leading
investment advisors such as Janus, Dreyfus, Bankers Trust, Morgan Stanley Dean
Witter, Pilgrim Baxter, INVESCO, Strong and The Timothy Partners. The broad
range of investment options offered under your Contract allows you the
flexibility to implement your own personal investment strategy and to change
your mix of investments as your objectives change over time.
In the first half of 1999, the stock market, as measured by the Standard
& Poor's Composite Stock 500 Index, showed a 12.38% increase and the NYSE
Composite Index increased by 8.78%. The bond market, as measured by Lehman
Brothers Aggregate Bond Index, decreased by 1.38% over the same period. The
performance of the sub-accounts offered under your Contract compared favorably
to the performance of these indices, as shown by the average annual total return
for the period January 1, 1999 to June 30, 1999, below.*
Janus A.S.-International Growth Portfolio 9.30%
Janus A.S.-Aggressive Growth Portfolio 29.84%
Janus A.S.-Worldwide Growth Portfolio 11.98%
Janus A.S.-Capital Appreciation Portfolio 24.82%
Janus A.S.-Growth Portfolio 15.86%
Janus A.S.-Balanced Portfolio 11.30%
Dreyfus V.I.F.-Small Cap Portfolio 11.57%
Dreyfus V.I.F.-Capital Appreciation Portfolio 6.77%
Dreyfus V.I.F.-Growth and Income Portfolio 10.32%
Dreyfus V.I.F.-Money Market Portfolio 1.28%
The Dreyfus Socially Responsible Growth Fund, Inc. 12.00%
Dreyfus Stock Index Fund 11.37%
BT Insurance Funds Trust-Small Cap Index Fund 7.11%
BT Insurance Funds Trust-EAFE(R)Equity Index Fund 3.40%
BT Insurance Funds Trust-Equity 500 Index Fund 11.17%
Strong Opportunity Fund II, Inc. 18.88%
Strong Variable Insurance Funds, Inc.-Strong Mid Cap Growth Fund II 26.67%
INVESCO VIF-Equity Income Fund 12.98%
INVESCO VIF-Total Return Fund 5.96%
INVESCO VIF-High Yield Fund 5.45%
Morgan Stanley Dean Witter Universal Funds, Inc.-Emerging Markets 37.17%
Equity Portfolio
Morgan Stanley Dean Witter Universal Funds, Inc.-Mid Cap Value 12.55%
Portfolio
Morgan Stanley Dean Witter Universal Funds, Inc.-Value Portfolio 11.39%
Morgan Stanley Dean Witter Universal Funds, Inc.-U.S. Real Estate 7.72%
Portfolio
Morgan Stanley Dean Witter Universal Funds, Inc.-Fixed Income -2.64%
Portfolio
PBHG Insurance Series Fund, Inc.-PBHG Technology & Communications 46.37%
Portfolio
PBHG Insurance Series Fund, Inc.-PBHG Growth II Portfolio 24.25%
PBHG Insurance Series Fund, Inc.-PBHG Large Cap Growth Portfolio 6.39%
The Timothy Plan Small-Cap Variable Series 10.12%
*Performance figures are net of all sub-account charges, but do
not reflect contingent deferred sales charges and contract
maintenance fees.
I, and my colleagues at Annuity Investors Life Insurance Company(R),
look forward to serving you in the future.
Sincerely,
/s/--------------
Robert A. Adams
President
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The Financial Statements of the following investment companies ("Registrant")
are made a part hereof and incorporated herein:
REGISTRANT 1940 Act Number
- ---------- ---------------
Dreyfus Variable Investment Fund 811-05125
- --Capital Appreciation Portfolio
- --Growth & Income Portfolio
- --Money Market Portfolio
- --Small Cap Portfolio
The Dreyfus Socially Responsible Growth Fund, Inc. 811-07044
Dreyfus Stock Index Fund 811-05719
Janus Aspen Series 811-07736
- --Janus Aspen Growth Portfolio
- --Janus Aspen Aggressive Growth Portfolio
- --Janus Aspen International Portfolio
- --Janus Aspen Worldwide Growth Portfolio
- --Janus Aspen Balanced Portfolio
- --Janus Aspen Capital Appreciation Portfolio
INVESCO Variable Investment Fund 811-8038
- --INVESCO VIF-High Yield Fund
- --INVESCO VIF-Industrial Income Fund
- --INVESCO VIF-Total Return Fund
Morgan Stanley Dean Witter Universal Funds Inc. 811-07607
- --Emerging Markets Equity Portfolio
- --Fixed Income Portfolio
- --Mid Cap Value Portfolio
- --U.S. Real Estate Portfolio
- --Value Portfolio
PBHG Insurance Series Fund, Inc. 811-08009
- --PGHB Growth II Portfolio
- --PBHG Large Cap Growth Portfolio
- --PBHG Technology & Communications Portfolio
Strong Opportunity Fund II, Inc. 811-6552
Strong Variable Insurance Funds, Inc. 811-6553
- --Strong Mid Cap Growth Fund II
The Timothy Plan Variable Series 811-8228
BT Insurance Funds Trust 811-07507
- --EAFE(R) Equity Index Fund
- --Equity 500 Index Fund
- --Small Cap Index Fund
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Annuity Investors Life Insurance Company(R)
P. O. Box 5423
Cincinnati, Ohio 45201-5423
1-800-789-6771
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for
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This report is for the information of the contract owners and participants of
Annuity Investors Life Insurance Company and Annuity Investors Variable Account
B. It is authorized for distribution to other persons only when preceded or
accompanied by a current prospectus which contains complete information,
including charges and expenses.
