<PAGE> 1
VARIABLE ANNUITY ACCOUNT ONE
FIRST SUNAMERICA LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
SUPPLEMENT TO THE PROSPECTUS DATED APRIL 1, 1999
On January 5, 1999, First SunAmerica and Anchor Series Trust (the "Trust")
filed a Substitution Application ("Application") with the Securities and
Exchange Commission ("SEC") to allow:
- Shares of the Fixed Income Portfolio to be replaced with shares of the
Government and Quality Bond Portfolio; and
- Shares of the Foreign Securities Portfolio to be replaced with shares of
the Strategic Multi-Asset Portfolio (the Fixed Income and Foreign
Securities Portfolio are referred to as the "Replaced Portfolios" and the
Government and Quality Bond Portfolio and Strategic Multi-Asset Portfolio
are referred to as the "Substituted Portfolios").
First SunAmerica and the Trust are in agreement that the proposed
substitution is in the best interest of shareholders. Due to the minimal
investments in the Replaced Portfolios, it is difficult for the adviser of these
portfolios to maximize performance. First SunAmerica believes that the
Substituted Portfolios are appropriate replacements because:
- The Government and Quality Bond Portfolio has a similar investment
objective to the Fixed Income Portfolio, invests in the same type of
fixed income securities and generally has better performance and lower
investment expenses; and
- The Strategic Multi-Asset Portfolio has a similar investment objective to
the Foreign Securities Portfolio, generally invests a portion of its
assets in foreign securities and in general, has better performance and a
similar expense ratio. As a result of the substitution the expense ratio
may even decline if there is a large influx of assets.
As of the date of this Supplement, the Application has not yet been granted
by the SEC. If this Application is granted, First SunAmerica will accomplish the
substitution by redeeming shares of the Replaced Portfolios and simultaneously
purchasing shares of the Substituted Portfolios at the close of business on a
selected date ("Substitution Date"). The substitution will not cause a change in
a Contract Owner's contract value or death benefit. First SunAmerica will assume
all costs and expenses associated with the substitution.
Contract Owners invested in either of the Replaced Portfolios will be
mailed a notice of the substitution within five (5) days after the Substitution
Date. For a period of thirty-one (31) days from mailing of the notice, Contract
Owners may transfer all assets in the Substituted Portfolio to any other
investment option, without incurring any transfer fee or otherwise having the
transfer count towards the maximum free transfers per contract year. Transfers
after that thirty-one (31) day period will be subject to the standard contract
provisions as discussed in the prospectus.
April 1, 1999
