By Supplement to Prospectus ("sticker") dated April 1, 1996, Ameritas Variable
Life Insurance Company amends its prospectus under the heading: "AVLIC and the
Account Ameritas Variable Life Insurance Company," and elsewhere to disclose the
following:
Ameritas Variable Life Insurance Company ("AVLIC") is a stock life insurance
company organized in the State of Nebraska. AVLIC was incorporated on June 22,
1983 and commenced business December 29, 1983. AVLIC is currently licensed to
sell life insurance in 46 states and the District of Columbia.
AVLIC is a wholly-owned subsidiary of AMAL Corporation, a Nebraska stock
company. AMAL Corporation is a joint venture of Ameritas Life Insurance Corp.
(Ameritas Life), which owns a majority interest in AMAL Corporation; and
American Mutual Life Insurance Company ("American Mutual"), an Iowa mutual life
insurance company, which owns a minority interest in AMAL Corporation. The Home
Offices of both AVLIC and Ameritas Life are at One Ameritas Way, 5900 "O"
Street, P.O. Box 82550, Lincoln, Nebraska 68501.
On April 1, 1996 Ameritas Life consummated an agreement with American Mutual
whereby AVLIC became a wholly-owned subsidiary of a newly formed holding
company, AMAL Corporation. The agreement was announced March 11, 1996. The
holding company will contribute approximately $18 million of additional paid-in
capital to AVLIC. Under terms of the agreement the AMAL Corporation will
initially be 66% owned by Ameritas Life and 34% owned by American Mutual.
American Mutual has options to purchase an additional 15% interest over the next
five years if certain production requirements are met.
Ameritas Life and its subsidiaries had total assets at December 31, 1995 of over
$2.4 billion. American Mutual and its subsidiaries had total assets as of
December 31, 1995 of over $3.9 billion.
AVLIC has a rating of A+(g)(u) (Superior) from A.M. Best Company, a firm that
analyzes insurance carriers, and a rating of AA ("Excellent") from Standard &
Poor's for claims-paying ability. Ameritas Life enjoys a long standing A+
(Superior) rating from A.M. Best.
Both Ameritas Life and American Mutual guarantee the obligations of AVLIC. This
guarantee will continue until AVLIC is recognized by a National Rating Agency as
having a financial rating equal to or greater than Ameritas Life, or until AVLIC
is acquired by another insurance company who has a financial rating by a
National Rating Agency equal to or greater than Ameritas Life and who agrees to
assume the guarantee.
Effective January 1, 1996, with the approval of the State of Nebraska Insurance
Department, AVLIC changed reserving methods used for most existing products
resulting in an increase in statutory surplus of approximately $24.3 million.
On February 28, 1996 the Board of Directors declared a return of paid-in capital
of $15 million paid by a note due on or before August 15, 1996. This action was
approved by the State of Nebraska Insurance Department (Insurance Department).
Any additional distributions of capital or surplus would require approval of the
Insurance Department.
AVLIC may publish in advertisements and reports to Policyowners, the ratings and
other information assigned it by one or more independent rating services. The
purpose of the ratings is to reflect the financial strength and/or claims-paying
ability of AVLIC. The ratings do not relate to the performance of the separate
account. Further AVLIC may publish charts and other information concerning
dollar cost averaging, portfolio rebalancing, earnings sweep, tax-deference and
other investment methods.
