Annuity Investors(R) Variable Account B
of
ANNUITY INVESTORS(R)
LIFE INSURANCE COMPANY
for
[commodore logo]
The Commodore The Commodore The Commodore
Navigator(SM) Advantage(R) Independence(R)
June 30, 2000
Semiannual Report to Contract Owners
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Table of Contents
Page
Letter from the President 2
Portfolio Semiannual Reports Tab
Janus Aspen Series I
Aggressive Growth Portfolio
Worldwide Growth Portfolio
Balanced Portfolio
Growth Portfolio
International Growth Portfolio
Capital Appreciation Portfolio
Dreyfus Variable Investment Fund II
Appreciation Portfolio
Money Market Portfolio
Growth and Income Portfolio
Small Cap Portfolio
The Dreyfus Socially Responsible Growth Fund, Inc.
Dreyfus Stock Index Fund
Strong Opportunity Fund II, Inc. III
Strong Variable Insurance Funds, Inc.
Strong Mid Cap Growth Fund II
Deutsche Asset Management VIT Funds IV
Deutsche VIT EAFE(R) Equity Index Fund
Deutsche VIT Equity 500 Index Fund
Deutsche VIT Small Cap Index Fund
INVESCO Variable Investment Funds, Inc. V
INVESCO VIF-Equity Income Fund
INVESCO VIF-Total Return Fund
INVESCO VIF-High Yield Fund
The Universal Institutional Funds, Inc. VI
Morgan Stanley UIF, Inc. Mid Cap Value Portfolio
Morgan Stanley UIF, Inc. Value Portfolio
Morgan Stanley UIF, Inc. Fixed Income Portfolio
Morgan Stanley UIF, Inc. U.S. Real Estate Portfolio
Morgan Stanley UIF, Inc. Emerging Markets Equity Portfolio
PBHG Insurance Series Fund, Inc. VII
PBHG Growth II Portfolio
PBHG Large Cap Growth Portfolio
PBHG Technology & Communications Portfolio
The Timothy Plan Small-Cap Variable Series VIII
1
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Annuity Investors Life Insurance Company(R)
Dear Commodore Variable Annuity Contract Owner:
I am pleased to present you with the June 30, 2000 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 invest-
ment advisors such as Janus Capital Corporation, The Dreyfus Corporation, Strong
Capital Management, Inc., Bankers Trust Company, INVESCO Funds Group, Inc.,
Miller Anderson & Sherrerd, LLP (a subsidiary of Morgan Stanley Dean Witter),
Morgan Stanley Asset Management, Pilgrim Baxter & Associates, Ltd., and Timothy
Partners, Ltd. 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 2000, the stock market, as measured by the Standard &
Poor's Composite Stock 500 Index, showed a 0.43% decrease and the NYSE Composite
Index decreased by 8.44%. The bond market, as measured by Lehman Brothers
Aggregate Bond Index, increased by 3.99% 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, 2000 to June 30, 2000, below.*
Janus A.S.-Aggressive Growth Portfolio 0.87 %
Janus A.S.-Worldwide Growth Portfolio 1.36 %
Janus A.S.-Balanced Portfolio 0.02 %
Janus A.S.-Growth Portfolio 1.02 %
Janus A.S.-International Growth Portfolio 2.19 %
Janus A.S.-Capital Appreciation Portfolio (4.66) %
Dreyfus V.I.F.-Appreciation Portfolio 2.08 %
Dreyfus V.I.F.-Money Market Portfolio 1.93 %
Dreyfus V.I.F.-Growth and Income Portfolio (1.57) %
Dreyfus V.I.F.-Small Cap Portfolio 13.92 %
The Dreyfus Socially Responsible Growth Fund, Inc. 1.84 %
Dreyfus Stock Index Fund (1.24) %
Strong Opportunity Fund II, Inc. 3.36 %
Strong Variable Insurance Funds, Inc.-Strong Mid Cap Growth Fund II 4.08 %
Deutsche VIT-EAFE(R) Equity Index Fund (6.31) %
Deutsche VIT-Equity 500 Index Fund (1.15) %
Deutsche VIT-Small Cap Index Fund 1.62 %
INVESCO VIF-Equity Income Fund 0.96 %
INVESCO VIF-Total Return Fund (4.58) %
INVESCO VIF-High Yield Fund (1.99) %
Morgan Stanley UIF, Inc.-Mid Cap Value Portfolio 5.29 %
Morgan Stanley UIF, Inc.-Value Portfolio (4.20) %
Morgan Stanley UIF, Inc.-Fixed Income Portfolio 2.57 %
Morgan Stanley UIF, Inc.-U.S. Real Estate Portfolio 14.79 %
Morgan Stanley UIF, Inc.-Emerging Markets Equity Portfolio (5.90) %
PBHG Insurance Series Fund, Inc.-PBHG Growth II Portfolio 19.26 %
PBHG Insurance Series Fund, Inc.-PBHG Large Cap Growth Portfolio 17.10 %
PBHG Insurance Series Fund, Inc.-PBHG Tech. & Comm. Portfolio 16.12 %
The Timothy Plan Small-Cap Variable Series 10.72 %
[FN]
*Performance figures are net of all sub-account charges, but do not reflect
contingent deferred sales charges and contract maintenance fees.
</FN>
I, and my colleagues at Annuity Investors Life Insurance Company(R), look
forward to serving you in the future.
Sincerely,
/s/---------------
Charles R. Scheper
President
2
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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
Janus Aspen Series 811-07736
Janus Aspen Aggressive Growth Portfolio
Janus Aspen Worldwide Growth Portfolio
Janus Aspen Balanced Portfolio
Janus Aspen Growth Portfolio
Janus Aspen International Growth Portfolio
Janus Aspen Capital Appreciation Portfolio
Dreyfus Variable Investment Fund 811-05125
Appreciation Portfolio
Money Market Portfolio
Growth and Income Portfolio
Small Cap Portfolio
The Dreyfus Socially Responsible Growth Fund, Inc. 811-07044
Dreyfus Stock Index Fund 811-05179
Strong Opportunity Fund II, Inc. 811-06552
Strong VIF Mid Cap Growth Fund II 811-06553
Deutsche Asset Management VIT Funds 811-08038
Deutsche VIT EAFE(R)Equity Index Fund
Deutsche VIT Equity 500 Index Fund
Deutsche VIT Small Cap Index Fund
INVESCO Variable Investment Funds, Inc. 811-08038
INVESCO VIF-Equity Income Fund
INVESCO VIF-Total Return Fund
INVESCO VIF-High Yield Fund
The Universal Institutional Funds, Inc. 811-07607
Morgan Stanley UIF Mid Cap Value Portfolio
Morgan Stanley UIF Value Portfolio
Morgan Stanley UIF Fixed Income Portfolio
Morgan Stanley UIF U.S. Real Estate Portfolio
Morgan Stanley UIF Emerging Markets Equity Portfolio
PBHG Insurance Series Fund, Inc. 811-08009
PBHG Growth II Portfolio
PBHG Large Cap Growth Portfolio
PBHG Technology & Communications Portfolio
The Timothy Plan Small-Cap Variable Series 811-08228
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Annuity Investors Life Insurance Company(R)
P. O. Box 5423
Cincinnati, Ohio 45201-5423
1-800-789-6771
www.commodoreva.com
Underwritten and Distributed by:
AAG Securities, Inc.
Member NASD
250 East Fifth Street
Cincinnati, Ohio 45202
ANNUITY INVESTORS(R)
LIFE INSURANCE COMPANY
for
[commodore logo]
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. For a current prospectus, Please call
1-800-789-6771. Please read it carefully before you invest or send money.
3293 (8/00) (IMSA logo)
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