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<PAGE> PAGE 2
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 9
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SIGNATURE ELIZABETH ARTHUR
TITLE SECRETARY
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM REGISTRANT'S
FORM N-SAR FOR THE YEAR ENDING 12-31-98 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
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<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
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<PAYABLE-FOR-SECURITIES> 0
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<AVERAGE-NET-ASSETS> 12408
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<PAGE>
[LOGO] - Sears Tower - Phone: (312) 879-2000
233 South Wacker Drive
Chicago, Illinois 60606-6301
REPORT OF INDEPENDENT AUDITORS
ON INTERNAL CONTROL
Board of Managers and Contract Owners
Franklin Life Variable Annuity Fund A
In planning and performing our audit of the financial statements and the
table of per-unit income and changes in accumulation unit value of Franklin
Life Variable Annuity Fund A for the year ended December 31, 1998, we
considered its internal control, including control activities for
safeguarding securities, in order to determine our auditing procedures for
the purpose of expressing our opinion on the financial statements and the
table of per-unit income and changes in accumulation unit value and to comply
with the requirements of Form N-SAR, not to provide assurance on the internal
control.
The management of Franklin Life Variable Annuity Fund A is responsible for
establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to assess
the expected benefits and related costs of controls. Generally, controls
that are relevant to an audit pertain to the entity's objective of preparing
financial statements for external purposes that are fairly presented in
conformity with generally accepted accounting principles. Those controls
include the safeguarding of assets against unauthorized acquisition, use or
disposition.
Because of inherent limitations in internal control, errors or fraud may
occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low
level the risk that errors or fraud in amounts that would be material in
relation to the financial statements and the table of per-unit income and
changes in accumulation unit value being audited may occur and not be
detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving
the internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above at
December 31, 1998.
This report is intended solely for the information and use of the board of
managers and management of Franklin Life Variable Annuity Fund A and the
Securities and Exchange Commission and is not intended to be and should not
be used by anyone other than these specified parties.
/s/ Ernst & Young LLP
January 29, 1999
