THE ADVANTAGE ANNUITY
issued by
AMERICAN REPUBLIC VARIABLE ANNUITY ACCOUNT
Individual Deferred Variable Annuity Contract
Supplement Dated January 26, 1996 to Prospectus Dated May 1, 1995
Changes in the Portfolios of PaineWebber Series Trust
Supplements dated November 1, 1995 and August 1, 1995 to the
prospectus dated May 1, 1995 described certain changes that were
made and certain changes proposed to be made in the operations of
three Portfolios of the PaineWebber Series Trust ("Trust")
(Strategic Fixed Income Portfolio, Growth and Income Portfolio
and Asset Allocation Portfolio) in which net premiums under the
Advantage Annuity are invested. The shares of the seven Trust
Portfolios are held by the corresponding Divisions of the
American Republic Variable Annuity Account ("Variable Annuity
Account") pursuant to allocation instructions of Owners of the
Advantage Annuity contract. A summary of the current status of
the latest changes is set forth below. For more complete
information regarding the changes, see the prospectus of the
PaineWebber Series Trust dated November 1, 1995 which accompanies
this prospectus.
The Asset Allocation Division is now the Balanced Division
Since August 14, 1995, the Asset Allocation Portfolio of the
Trust has been operated as a "balanced fund", in that it invests
in a combination of equity securities, investment grade debt
obligations and money market instruments.
On December 28, 1995, another insurer using the Trust as the
investment medium for its variable annuities obtained an Order
from the Securities and Exchange Commission ("S.E.C.") permitting
it to substitute shares of the Asset Allocation Portfolio for
shares of the Trust's Balanced Portfolio which was not included
as an investment medium for the Advantage Annuity and which, in
addition, is no longer available to any insurer. On January 26,
1996, the substitution of shares of the Asset Allocation
Portfolio for shares of the Balanced Portfolio was effected
pursuant to the above-described S.E.C. Order. Monies formerly
allocated to the Balanced Portfolio were transferred into the
Asset Allocation Portfolio. Also, at that time, the names of
both the Asset Allocation Portfolio and Variable Annuity Account
Division were changed to "Balanced Portfolio" and "Balanced
Division", respectively, to reflect the new Balanced Portfolio's
investment policies.
