<PAGE>
Financial Statements
American Republic Variable Annuity Account
Year ended December 31, 1996
with Report of Independent Auditors
<PAGE>
American Republic Variable Annuity Account
Financial Statements
Year ended December 31, 1996
<TABLE>
<CAPTION>
Contents
<S> <C>
Report of Independent Auditors.................................................1
Audited Financial Statements
Statement of Net Assets........................................................2
Statement of Operations........................................................5
Statements of Changes in Net Assets............................................7
Notes to Financial Statements..................................................9
</TABLE>
<PAGE>
Report of Independent Auditors
The Board of Directors
American Republic Insurance Company
We have audited the accompanying statement of net assets of American
Republic Variable Annuity Account [comprising, respectively, the Money Market,
Growth, Growth and Income, Global Growth, Global Income, Strategic Fixed
Income, and Balanced (formerly Asset Allocation) Divisions] as of December 31,
1996, and the related statements of operations for the year then ended and
changes in net assets for each of the two years in the period then ended.
These financial statements are the responsibility of the Account's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of December 31, 1996 by
correspondence with the transfer agent. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of American Republic Variable
Annuity Account at December 31, 1996, and the results of its operations for the
year then ended and the changes in its net assets for each of the two years in
the period then ended, in conformity with generally accepted accounting
principles.
/s/ Ernst & Young LLP
Des Moines, Iowa
January 17, 1997
1
<PAGE>
American Republic Variable Annuity Account
Statement of Net Assets
December 31, 1996
<TABLE>
<CAPTION>
Combined
------------
Assets
<S> <C>
Investments at net asset value:
PaineWebber Series Trust Money Market Portfolio, 5,150,227
shares at $1.00 per share (cost - $5,150,227) $ 5,150,227
PaineWebber Series Trust Growth Portfolio, 932,542 shares at
$17.48 per share (cost - $14,550,935) 16,300,828
PaineWebber Series Trust Growth and Income Portfolio, 491,934
shares at $12.27 per share (cost - $5,103,833) 6,036,031
PaineWebber Series Trust Global Growth Portfolio, 644,629
shares at $13.74 per share (cost - $8,035,490) 8,857,208
PaineWebber Series Trust Global Income Portfolio, 1,091,288
shares at $11.14 per share (cost - $12,459,422) 12,156,953
PaineWebber Series Trust Strategic Fixed Income Portfolio,
469,688 shares at $10.21 per share (cost - $5,222,331) 4,795,516
PaineWebber Series Trust Balanced Portfolio, 931,977 shares
at $10.95 per share (cost - $9,986,474) 10,205,145
-------------
Total investments (cost - $60,508,712) 63,501,908
Accrued investment income 6,797,183
-------------
Total net assets $70,299,091
=============
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
Money Growth and Global Global Strategic
Market Growth Income Growth Income Fixed Income Balanced
Division Division Division Division Division Division Division
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$5,150,227 $ -- $ -- $ -- $ -- $ -- $ --
-- 16,300,828 -- -- -- -- --
-- -- 6,036,031 -- -- -- --
-- -- -- 8,857,208 -- -- --
-- -- -- -- 12,156,953 -- --
-- -- -- -- -- 4,795,516 --
-- -- -- -- -- -- 10,205,145
- ------------------------------------------------------------------------------------------------------------------------
5,150,227 16,300,828 6,036,031 8,857,208 12,156,953 4,795,516 10,205,145
- 3,093,287 1,061,557 49,095 834,258 329,084 1,429,902
- ------------------------------------------------------------------------------------------------------------------------
$5,150,227 $19,394,115 $7,097,588 $8,906,303 $12,991,211 $5,124,600 $11,635,047
========================================================================================================================
</TABLE>
3
<PAGE>
American Republic Variable Annuity Account
Statement of Net Assets (continued)
<TABLE>
<S> <C>
Net assets represented by:
Currently payable annuity contracts:
Money Market Division $ 844
Growth Division 72,115
Growth and Income Division 18,291
Global Growth Division 29,648
Global Income Division 83,809
Strategic Fixed Income Division 26,676
Balanced Division 68,772
-----------
300,155
<CAPTION>
Units Value
-------------------
<S> <C> <C> <C>
Contracts in accumulation period:
Money Market Division 370,284 $13.91 5,149,383
Growth Division 624,785 30.93 19,322,000
Growth and Income Division 503,090 14.07 7,079,297
Global Growth Division 557,850 15.91 8,876,655
Global Income Division 744,621 17.33 12,907,402
Strategic Fixed Income Division 320,937 15.88 5,097,924
Balanced Division 576,086 20.08 11,566,275
-----------
69,998,936
-----------
$70,299,091
===========
</TABLE>
See accompanying notes.
4
<PAGE>
American Republic Variable Annuity Account
Statement of Operations
Year ended December 31, 1996
<TABLE>
<CAPTION>
Money
Market Growth
Combined Division Division
-----------------------------------------
<S> <C> <C> <C>
Net investment income (loss)
Income:
Dividends $1,921,647 $377,334 $ --
Capital gains distributions 5,349,740 -- 3,098,984
Expenses (Note 2):
Administrative charges (171,422) (22,011) (37,492)
Mortality, distribution and expense
risk (1,160,880) (122,916) (290,346)
-----------------------------------------
Net investment income (loss) 5,939,085 232,407 2,771,146
Realized and unrealized gain (loss) on
investments (Note 4)
Net realized gain (loss) on investments 2,783,561 -- 2,174,232
Change in net unrealized appreciation/
depreciation of investments (352,783) -- (1,823,105)
-----------------------------------------
Net increase in net assets resulting
from operations $8,369,863 232,407 $3,122,273
=========================================
</TABLE>
See accompanying notes.
5
<PAGE>
<TABLE>
<CAPTION>
Growth Global Global Strategic
and Income Growth Income Fixed Income Balanced
Division Division Division Division Division
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 29,961 $ 49,094 $869,618 $329,084 $ 266,556
1,031,596 -- 9,417 46,396 1,163,347
(15,745) (22,072) (45,755) (12,782) (15,565)
(99,599) (139,358) (234,880) (90,837) (182,944)
- ---------------------------------------------------------------------------
946,213 (112,336) 598,400 271,861 1,231,394
590,992 134,027 (55,576) (366,068) 305,954
(249,540) 1,232,211 142,769 122,835 222,047
- ---------------------------------------------------------------------------
$1,287,665 $1,253,902 $685,593 $ 28,628 $1,759,395
===========================================================================
</TABLE>
6
<PAGE>
American Republic Variable Annuity Account
Statements of Changes in Net Assets
Years ended December 31, 1996 and 1995
<TABLE>
<CAPTION>
Money
Market
Combined Division
-----------------------------
<S> <C> <C>
Net assets at January 1, 1995 $141,063,350 $16,206,243
Increase (decrease) in net assets
Operations:
Net investment income (loss) 5,982,634 593,677
Net realized gain (loss) on investments 1,399,704 -
Change in net unrealized appreciation/depreciation of investments 9,362,541 -
-----------------------------
Net increase (decrease) in net assets resulting from operations 16,744,879 593,677
Changes from principal transactions:
Purchase payments 280,426 3,774
Contract distributions and terminations (52,752,906) (11,064,141)
Transfer payments (to) from other divisions or other contracts 3,186,809 9,277,404
Annuity payments and related actuarial adjustment in reserves (8,874) 24,226
-----------------------------
Decrease in net assets derived from principal transactions (49,294,545) (1,758,737)
-----------------------------
Total decrease (32,549,666) (1,165,060)
-----------------------------
Net assets at December 31, 1995 108,513,684 15,041,183
Increase (decrease) in net assets
Operations:
Net investment income (loss) 5,939,085 232,407
Net realized gain (loss) on investments 2,783,561 -
Change in net unrealized appreciation/depreciation of investments (352,783) -
-----------------------------
Net increase in net assets resulting from operations 8,369,863 232,407
Changes from principal transactions:
Purchase payments 93,441 1,655
Contract distributions and terminations (47,452,035) (12,205,680)
Transfer payments (to) from other divisions or other contracts 932,168 2,106,570
Annuity payments and related actuarial adjustment in reserves (158,030) (25,908)
-----------------------------
Decrease in net assets derived from principal transactions (46,584,456) (10,123,363)
-----------------------------
Total decrease (38,214,593) (9,890,956)
-----------------------------
Net assets at December 31, 1996 $70,299,091 $ 5,150,227
=============================
</TABLE>
See accompanying notes.
7
<PAGE>
<TABLE>
<CAPTION>
Growth and Global Global Strategic
Growth Income Growth Income Fixed Income Balanced
Division Division Division Division Division Division
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$26,973,535 $9,159,947 $20,916,959 $34,705,971 $13,894,120 $19,206,575
1,796,568 (67,105) (275,338) 1,711,101 1,023,380 1,200,351
1,447,141 358,226 (570,494) 176,900 (10,538) (1,531)
3,601,633 1,666,194 (351,624) 1,295,090 835,190 2,316,058
- ---------------------------------------------------------------------------------------------
6,845,342 1,957,315 (1,197,456) 3,183,091 1,848,032 3,514,878
103,801 9,799 74,869 26,580 17,467 44,136
(10,497,600) (2,731,763) (5,618,216) (10,317,894) 5,998,732 (6,524,560)
1,796,703 (911,170) (1,989,120) (4,443,434) (694,719) 151,145
6,755 7,084 (8,736) (18,889) (3,119) (16,195)
- ---------------------------------------------------------------------------------------------
(8,590,341) (3,626,050) (7,541,203) (14,753,637) (6,679,103) (6,345,474)
- ---------------------------------------------------------------------------------------------
(1,744,999) (1,668,735) (8,738,659) (11,570,543) (4,831,071) (2,830,596)
- ---------------------------------------------------------------------------------------------
25,228,536 7,491,212 12,178,300 23,135,425 9,063,049 16,375,979
2,771,146 946,213 (112,336) 598,400 271,861 1,231,394
2,174,232 590,992 134,027 (55,576) (366,068) 305,954
(1,823,105) (249,540) 1,232,211 142,769 122,835 222,047
- ---------------------------------------------------------------------------------------------
3,122,273 1,287,665 1,253,902 685,593 28,628 1,759,395
51,536 7,936 13,947 2,646 3,360 12,361
(8,987,652) (2,489,204) (3,891,049) (10,160,961) (3,694,413) (6,023,076)
8,368 825,892 (644,445) (625,504) (273,180) (465,533)
(28,946) (25,913) (4,352) (45,988) (2,844) (24,079)
- ---------------------------------------------------------------------------------------------
(8,956,694) (1,681,289) (4,525,899) (10,829,807) (3,967,077) (6,500,327)
- ---------------------------------------------------------------------------------------------
(5,834,421) (393,624) (3,271,997) (10,144,214) (3,938,449) (4,740,932)
- ---------------------------------------------------------------------------------------------
$19,394,115 $7,097,588 $ 8,906,303 $12,991,211 $5,124,600 $11,635,047
=============================================================================================
</TABLE>
8
<PAGE>
American Republic Variable Annuity Account
Notes to Financial Statements
December 31, 1996
1. Investment and Accounting Policies
Organization
American Republic Variable Annuity Account (the Account) was organized by
American Republic Insurance Company (the Company) in accordance with the
provisions of Iowa Insurance laws and is a part of the total operations of the
Company. The assets and liabilities of the Account are clearly identified and
distinguished from the other assets and liabilities of the Company. The
Account invests solely in specified portfolios of PaineWebber Series Trust, an
open-end management investment company under the Investment Company Act of
1940, as directed by eligible contract owners. All series of shares are
diversified except Global Income Portfolio.
Effective January 26, 1996, the name of the Asset Allocation Division
changed to Balanced Division.
Investment Operations
Investments are stated at the closing net asset values per share on December
31, 1996.
The average cost method is used to determine realized gains and losses.
Dividends are taken into income on an accrual basis as of the ex-dividend date.
Annuity Reserves
Currently payable annuity contract reserves are computed according to the
Individual Annuity Valuation 1983 Table using an assumed interest rate of 4.0%.
If the amount paid to the contractholder is less than originally estimated,
charges paid for mortality and expense risks are reimbursed to the Company. If
additional amounts are required, the Company reimburses the Account.
Use of Estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect amounts reported in the financial
statements and accompanying notes. Such estimates and assumptions could change
in the future as more information becomes known, which could impact the amounts
reported and disclosed herein.
Reclassifications
Certain amounts appearing in the 1995 statement of changes in net assets
have been reclassified to conform with the 1996 presentation.
9
<PAGE>
American Republic Variable Annuity Account
Notes to Financial Statements (continued)
2. Expenses
The Company is compensated for certain expenses. Mortality, distribution,
and expense risks assumed by the Company are compensated for by a charge
equivalent to an annual rate of 1.40% of the total net assets of each division.
These charges amounted to $1,160,880 in 1996.
An annual contract administration charge of $30 is deducted on the last
valuation date of each calendar year, upon full withdrawal of a contract's
value or upon commencement of annuity payments if such withdrawal is made or
annuity payments commence prior to the last valuation date of the year. A
transfer charge of $10 will be imposed on each transfer between divisions
(portfolios) of the account in excess of six in any one calendar year.
However, the Company has waived this charge until further notice. An early
withdrawal charge may be imposed in the event of withdrawal of any portion of
the contract value or upon annuitization. The early withdrawal charge is 5% of
the amount withdrawn for purchase payments made within six years prior to the
date of withdrawal. Purchase payments made after May 1, 1989 will have an
early withdrawal charge period of five years. A withdrawal transaction charge
of $10 will be imposed on each withdrawal in excess of three per calendar year.
Total administrative charges amounted to $171,422 in 1996.
3. Federal Income Taxes
Operations of the Account are part of the operations of the Company which is
taxed as a life insurance company under the Internal Revenue Code. Under
current law, no federal income taxes are payable with respect to operations of
the Account.
4. Purchases and Sales of Investment Securities
The aggregate cost of purchases and proceeds from sales of investments were
as follows:
<TABLE>
<CAPTION>
Year ended Year ended
December 31, 1996 December 31, 1995
-----------------------------------------------------
Purchases Sales Purchases Sales
-----------------------------------------------------
<S> <C> <C> <C> <C>
Portfolio:
Money Market $ 6,669,873 $16,560,914 $13,486,067 $14,581,530
Growth 4,707,339 11,817,070 4,661,090 11,690,448
Growth and Income 1,024,433 2,742,046 2,457,874 6,131,168
Global Growth 990,326 5,677,656 2,443,083 9,104,616
Global Income 2,638,021 11,706,788 1,329,829 15,774,620
Strategic Fixed Income 2,142,908 5,268,132 2,307,139 7,687,957
Balanced 1,686,439 6,897,555 3,233,706 7,649,701
-----------------------------------------------------
$19,859,339 $60,670,161 $29,918,788 $72,620,040
=====================================================
</TABLE>
10
<PAGE>
American Republic Variable Annuity Account
Notes to Financial Statements (continued)
5. Summary of Changes from Unit Transactions
Transactions in units were as follows:
<TABLE>
<CAPTION>
Year ended Year ended
December 31, 1996 December 31, 1995
---------------------------------------------
Purchased Redeemed Purchased Redeemed
---------------------------------------------
<S> <C> <C> <C> <C>
Division:
Money Market 462,861 1,203,441 1,211,551 1,346,061
Growth 87,118 412,487 238,060 617,038
Growth and Income 73,162 208,363 313,034 681,018
Global Growth 65,888 374,686 135,760 687,329
Global Income 35,860 687,175 35,535 988,705
Strategic Fixed Income 56,476 317,278 125,057 587,044
Balanced 13,351 370,326 109,536 508,722
---------------------------------------------
794,716 3,573,756 2,168,533 5,415,917
=============================================
</TABLE>
6. Net Assets
Net assets at December 31, 1996 consisted of the following:
<TABLE>
<CAPTION>
Money Growth
Market Growth and Income
Combined Division Division Division
--------------------------------------------------
<S> <C> <C> <C> <C>
Unit transactions $47,294,323 $4,446,222 $12,510,549 $4,718,630
Accumulated net invest-
ment income 20,011,572 704,005 5,133,673 1,446,760
Net unrealized appreciation/
depreciation of invest-
ments 2,993,196 -- 1,749,893 932,198
--------------------------------------------------
$70,299,091 $5,150,227 $19,394,115 $7,097,588
==================================================
<CAPTION>
Global Global Strategic
Growth Income Fixed Income Balanced
Division Division Division Division
--------------------------------------------------
<S> <C> <C> <C> <C>
Unit transactions $6,346,345 $ 8,985,660 $4,066,728 $ 6,220,189
Accumulated net invest-
ment income 1,738,240 4,308,020 1,484,687 5,196,187
Net unrealized appreciation/
depreciation of invest-
ments 821,718 (302,469) (426,815) 218,671
--------------------------------------------------
$8,906,303 $12,991,211 $5,124,600 $11,635,047
==================================================
</TABLE>
11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> AMERICAN REPUBLIC VARIABLE ANNUITY ACCT MONEY MARKET DIV
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 5,150,227
<INVESTMENTS-AT-VALUE> 5,150,227
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 5,150,227
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5,150,227
<SHARES-COMMON-STOCK> 370,284
<SHARES-COMMON-PRIOR> 1,110,864
<ACCUMULATED-NII-CURRENT> 704,005
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 5,150,227
<DIVIDEND-INCOME> 377,334
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 144,927
<NET-INVESTMENT-INCOME> 232,407
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 232,407
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 462,861
<NUMBER-OF-SHARES-REDEEMED> 1,203,441
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (9,890,956)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 13.52
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.91
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> AMERICAN REPUBLIC VARIABLE ANNUITY ACCT GROWTH DIV
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 14,550,935
<INVESTMENTS-AT-VALUE> 16,300,828
<RECEIVABLES> 3,093,287
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 19,394,115
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 19,394,115
<SHARES-COMMON-STOCK> 624,785
<SHARES-COMMON-PRIOR> 950,154
<ACCUMULATED-NII-CURRENT> 5,133,673
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,749,893
<NET-ASSETS> 19,394,115
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 3,098,984
<EXPENSES-NET> 327,838
<NET-INVESTMENT-INCOME> 2,771,146
<REALIZED-GAINS-CURRENT> 2,174,232
<APPREC-INCREASE-CURRENT> (1,823,105)
<NET-CHANGE-FROM-OPS> 3,122,273
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 87,118
<NUMBER-OF-SHARES-REDEEMED> 412,487
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (5,834,421)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 26.48
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 30.93
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> AMERICAN REPUBLIC VARIABLE ANNUITY ACCT GROWTH AND INCOME
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 5,103,833
<INVESTMENTS-AT-VALUE> 6,036,031
<RECEIVABLES> 1,061,557
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7,097,588
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7,097,588
<SHARES-COMMON-STOCK> 503,090
<SHARES-COMMON-PRIOR> 638,291
<ACCUMULATED-NII-CURRENT> 1,446,760
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 932,198
<NET-ASSETS> 7,097,588
<DIVIDEND-INCOME> 29,961
<INTEREST-INCOME> 0
<OTHER-INCOME> 1,031,596
<EXPENSES-NET> 115,344
<NET-INVESTMENT-INCOME> 946,213
<REALIZED-GAINS-CURRENT> 590,992
<APPREC-INCREASE-CURRENT> (249,540)
<NET-CHANGE-FROM-OPS> 1,287,665
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 73,162
<NUMBER-OF-SHARES-REDEEMED> 208,363
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (393,624)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 11.71
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.07
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> AMERICAN REPUBLIC VARIABLE ANNUITY ACCT GLOBAL GROWTH DIV
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 8,035,490
<INVESTMENTS-AT-VALUE> 8,857,208
<RECEIVABLES> 49,095
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,906,303
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,906,303
<SHARES-COMMON-STOCK> 557,850
<SHARES-COMMON-PRIOR> 866,648
<ACCUMULATED-NII-CURRENT> 1,738,240
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 821,718
<NET-ASSETS> 8,906,303
<DIVIDEND-INCOME> 49,094
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 161,430
<NET-INVESTMENT-INCOME> (112,336)
<REALIZED-GAINS-CURRENT> 134,027
<APPREC-INCREASE-CURRENT> 1,232,211
<NET-CHANGE-FROM-OPS> 1,253,902
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 65,888
<NUMBER-OF-SHARES-REDEEMED> 374,686
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (3,271,997)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 14.02
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.91
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> AMERICAN REPUBLIC VARIABLE ANNUITY ACCT GLOBAL INCOME DIV
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 12,459,422
<INVESTMENTS-AT-VALUE> 12,156,953
<RECEIVABLES> 834,258
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 12,991,211
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 12,991,211
<SHARES-COMMON-STOCK> 744,621
<SHARES-COMMON-PRIOR> 1,395,936
<ACCUMULATED-NII-CURRENT> 4,308,020
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (302,469)
<NET-ASSETS> 12,991,211
<DIVIDEND-INCOME> 869,618
<INTEREST-INCOME> 0
<OTHER-INCOME> 9,417
<EXPENSES-NET> 280,635
<NET-INVESTMENT-INCOME> 598,400
<REALIZED-GAINS-CURRENT> (55,576)
<APPREC-INCREASE-CURRENT> 142,769
<NET-CHANGE-FROM-OPS> 685,593
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 35,860
<NUMBER-OF-SHARES-REDEEMED> 687,175
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (10,144,214)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 16.50
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.33
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> AMERICAN REPUBLIC VAR. ANNUITY ACCT STRATEGIC FIXED INCOME
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 5,222,331
<INVESTMENTS-AT-VALUE> 4,795,516
<RECEIVABLES> 329,084
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 5,124,600
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5,124,600
<SHARES-COMMON-STOCK> 320,937
<SHARES-COMMON-PRIOR> 581,739
<ACCUMULATED-NII-CURRENT> 1,484,687
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (426,815)
<NET-ASSETS> 5,124,600
<DIVIDEND-INCOME> 329,084
<INTEREST-INCOME> 0
<OTHER-INCOME> 46,396
<EXPENSES-NET> 103,618
<NET-INVESTMENT-INCOME> 271,861
<REALIZED-GAINS-CURRENT> (366,068)
<APPREC-INCREASE-CURRENT> 122,835
<NET-CHANGE-FROM-OPS> 28,628
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 56,476
<NUMBER-OF-SHARES-REDEEMED> 317,278
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (3,938,449)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 15.53
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.88
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 7
<NAME> AMERICAN REPUBLIC VARIABLE ANNUITY ACCT BALANCED DIV<F1>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 9,986,474
<INVESTMENTS-AT-VALUE> 10,205,145
<RECEIVABLES> 1,429,902
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 11,635,047
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 11,635,047
<SHARES-COMMON-STOCK> 576,086
<SHARES-COMMON-PRIOR> 933,061
<ACCUMULATED-NII-CURRENT> 5,196,187
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 218,671
<NET-ASSETS> 11,635,047
<DIVIDEND-INCOME> 266,556
<INTEREST-INCOME> 0
<OTHER-INCOME> 1,163,347
<EXPENSES-NET> 198,509
<NET-INVESTMENT-INCOME> 1,231,394
<REALIZED-GAINS-CURRENT> 305,954
<APPREC-INCREASE-CURRENT> 222,047
<NET-CHANGE-FROM-OPS> 1,759,395
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 13,351
<NUMBER-OF-SHARES-REDEEMED> 370,326
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (4,740,932)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 17.46
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 20.08
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1> DIVISION WAS FORMERLY NAMED ASSET ALLOCATION DIVISION
</FN>
</TABLE>
