<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements
Statements of Assets and Liabilities
June 30, 1996 (unaudited)
U.S.
Money Growth and Precious High Real Estate Government
Market Income Metals Income Securities Securities
Fund Fund Fund Fund Fund Fund
------- ------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Investments at net asset value:
Franklin Valuemark Funds:
Money Market Fund, 585,291 shares,
cost $585,291....................................... $585,291 - - - - -
Growth and Income Fund, 81,453 shares,
cost $1,132,201..................................... - 1,321,173 - - - -
Precious Metals Fund, 10,856 shares,
cost $146,078....................................... - - 161,977 - - -
High Income Fund, 151,154 shares,
cost $1,868,905..................................... - - - 1,949,883 - -
Real Estate Securities Fund, 10,776 shares,
cost $158,082....................................... - - - - 192,884 -
U.S. Government Securities Fund, 48,169 shares,
cost $519,320....................................... - - - - - 617,045
-------- --------- ------- --------- ------- -------
Total assets...................................... 585,291 1,321,173 161,977 1,949,883 192,884 617,045
-------- --------- ------- --------- ------- -------
Liabilities:
Accrued mortality and expense risk charges............ 7,838 10,502 3,803 13,534 1,806 6,530
Accrued administrative charges........................ 1,959 2,625 951 3,383 452 1,632
-------- --------- ------- --------- ------- -------
Total liabilities................................. 9,797 13,127 4,754 16,917 2,258 8,162
-------- --------- ------- --------- ------- -------
Net assets........................................ $575,494 1,308,046 157,223 1,932,966 190,626 608,883
======== ========= ======= ========= ======= =======
Policy owners' equity (note 5)......................... $575,494 1,308,046 157,223 1,932,966 190,626 608,883
======== ========= ======= ========= ======= =======
Units outstanding..................................... 37,821 44,911 9,552 95,262 8,537 31,064
======== ========= ======= ========= ======= =======
Accumulation unit value per unit...................... $15.216 29.125 16.459 20.291 22.330 19.601
======== ========= ======= ========= ======= =======
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Assets and Liabilities (cont.)
June 30, 1996 (unaudited)
Templeton Investment
Utility Zero Zero Zero Global Income Grade
Equity Coupon Coupon Coupon Securities Intermediate
Fund Fund - 2000 Fund - 2005 Fund - 2010 Fund Bond Fund
-------- ------- ------- ------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Investments at net asset value:
Franklin Valuemark Funds:
Utility Equity Fund, 87,205 shares,
cost $1,126,934................................ $1,546,145 - - - - -
Zero Coupon Fund - 2000, 23,622 shares,
cost $259,837.................................. - 342,993 - - - -
Zero Coupon Fund - 2005, 24,052 shares,
cost $279,161.................................. - - 368,954 - - -
Zero Coupon Fund - 2010, 9,999 shares,
cost $147,400.................................. - - - 149,592 - -
Templeton Global Income Securities Fund,
8,104 shares, cost $102,391.................... - - - - 101,945 -
Investment Grade Intermediate Bond Fund,
5,213 shares, cost $69,606..................... - - - - - 69,861
---------- ------- ------- ------- ------- ------
Total assets................................. 1,546,145 342,993 368,954 149,592 101,945 69,861
---------- ------- ------- ------- ------- ------
Liabilities:
Accrued mortality and expense risk charges....... 16,217 3,765 3,662 1,522 975 975
Accrued administrative charges................... 4,054 941 915 380 244 244
---------- ------- ------- ------- ------- ------
Total liabilities............................ 20,271 4,706 4,577 1,902 1,219 1,219
---------- ------- ------- ------- ------- ------
Net assets................................... $1,525,874 338,287 364,377 147,690 100,726 68,642
========== ======= ======= ======= ======= ======
Policy owners' equity (note 5).................... $1,525,874 338,287 364,377 147,690 100,726 68,642
========== ======= ======= ======= ======= ======
Units outstanding................................ 62,808 14,763 14,389 5,353 6,505 4,481
========== ======= ======= ======= ======= ======
Accumulation unit value per unit................. $24.294 22.914 25.324 27.592 15.484 15.320
========== ======= ======= ======= ======= ======
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Assets and Liabilities (cont.)
June 30, 1996 (unaudited)
Adjustable Templeton Templeton Templeton
Income U.S. Pacific Rising International Developing
Securities Government Growth Dividends Equity Markets Equity
Fund Fund Fund Fund Fund Fund
------- -------- ------- ------ -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investments at net asset value:
Franklin Valuemark Funds:
Income Securities Fund, 42,538 shares,
cost $657,631..................................... $684,440 - - - - -
Adjustable U.S. Government Fund, 23,318 shares,
cost $252,996..................................... - 238,309 - - - -
Templeton Pacific Growth Fund, 25,774 shares,
cost $351,629..................................... - - 384,035 - - -
Rising Dividends Fund, 16,462 shares,
cost $195,835..................................... - - - 218,946 - -
Templeton International Equity Fund,
54,455 shares, cost $721,556...................... - - - - 768,353 -
Templeton Developing Markets Equity Fund,
32,352 shares, cost $329,116...................... - - - - - 357,486
-------- ------- ------- ------- ------- -------
Total assets.................................... 684,440 238,309 384,035 218,946 768,353 357,486
-------- ------- ------- ------- ------- -------
Liabilities:
Accrued mortality and expense risk charges.......... 4,627 646 3,282 1,443 4,905 1,909
Accrued administrative charges...................... 1,157 161 820 361 1,226 477
-------- ------- ------- ------- ------- -------
Total liabilities............................... 5,784 807 4,102 1,804 6,131 2,386
-------- ------- ------- ------- ------- -------
Net assets...................................... $678,656 237,502 379,933 217,142 762,222 355,100
======== ======= ======= ======= ======= =======
Policy owners' equity (note 5)....................... $678,656 237,502 379,933 217,142 762,222 355,100
======== ======= ======= ======= ======= =======
Units outstanding................................... 33,252 18,770 24,327 15,857 50,090 32,858
======== ======= ======= ======= ======= =======
Accumulation unit value per unit.................... $20.410 12.653 15.617 13.693 15.217 10.807
======== ======= ======= ======= ======= =======
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Assets and Liabilities (cont.)
June 30, 1996 (unaudited)
Templeton Templeton
Global Global Asset Small Total
Growth Allocation Cap All
Fund Fund Fund Funds
------- -------- ----- --------
<S> <C> <C> <C> <C>
Investments at net asset value:
Franklin Valuemark Funds:
Templeton Global Growth Fund, 46,273 shares, cost $533,989.................... $583,504 - -
Templeton Global Asset Allocation Fund, 45,671 shares, cost $512,881.......... - 519,284 -
Small Cap Fund, 1,407 shares, cost $16,927.................................... - - 17,096
-------- ------- ------
Total assets............................................................... 583,504 519,284 17,096 11,179,196
-------- ------- ------ ----------
Liabilities:
Accrued mortality and expense risk charges..................................... 2,776 424 3 91,144
Accrued administrative charges................................................. 694 106 - 22,782
-------- ------- ------ ----------
Total liabilities.......................................................... 3,470 530 3 113,926
-------- ------- ------ ----------
Net assets................................................................. $580,034 518,754 17,093 11,065,270
======== ======= ====== ==========
Policy owners' equity (note 5).................................................. $580,034 518,754 17,093 11,065,270
======== ======= ====== ==========
Units outstanding.............................................................. 47,459 45,232 1,422 604,713
======== ======= ====== ==========
Accumulation unit value per unit............................................... $12.222 11.469 12.022
======== ======= ======
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Operations
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Money Market Fund Growth and Income Fund Precious Metals Fund
----------------------------- -------------------------- ---------------------------
1996 1995 1994 1996 1995 1994 1996 1995 1994
--------- ------- ------ ------- ------ ------ ------ ------- ------
<S> <C> <C> <C>
Investment income:
Dividends reinvested in
fund shares.................. $ 17,843 33,164 14,466 28,758 10,179 4,301 2,102 3,600 626
---------- ------- ------- ------- ------- ------- ------ ------- ------
Expenses:
Mortality and expense
risk charges................. 2,292 4,898 2,689 3,948 5,842 3,726 775 2,489 700
Administrative charges........ 573 1,225 672 987 1,460 932 194 622 175
---------- ------- ------- ------- ------- ------- ------ ------- ------
Total expenses........... 2,865 6,123 3,361 4,935 7,302 4,658 969 3,111 875
---------- ------- ------- ------- ------- ------- ------ ------- ------
Investment income
(loss), net............. 14,978 27,041 11,105 23,823 2,877 (357) 1,133 489 (249)
Realized gains (losses) and
unrealized appreciation
(depreciation) on investments:
Realized capital gain distri-
butions on mutual funds..... - - - 101,857 22,157 8,957 1,927 2,665 -
---------- ------- ------- ------- ------- ------- ------ ------- ------
Realized gains (losses) on
sales of investments:
Proceeds from sales........ 1,839,290 965,636 513,009 87,012 97,576 114,661 47,031 161,878 11,123
Cost of investments sold... (1,839,290) (965,636) (513,009) (65,362) (77,218) (94,631) (37,645) (146,847) (9,528)
---------- ------- ------- ------- ------- ------- ------ ------- ------
Total realized gains
(losses) on sales of
investments, net......... - - - 21,650 20,358 20,030 9,386 15,031 1,595
---------- ------- ------- ------- ------- ------- ------ ------- ------
Realized gains (losses)
on investments, net...... - - - 123,507 42,515 28,987 11,313 17,696 1,595
Net change in unrealized
appreciation (depreciation)
on investments.............. - - - (87,411) 184,273 (45,642) 2,882 (10,144) (2,094)
---------- ------- ------- ------- ------- ------- ------ ------- ------
Total realized gains
(losses) and unrealized
appreciation
(depreciation) on
investments, net......... - - - 36,096 226,788 (16,655) 14,195 7,552 (499)
---------- ------- ------- ------- ------- ------- ------ ------- ------
Net increase (decrease) in
net assets from operations.... $ 14,978 27,041 11,105 59,919 229,665 (17,012) 15,328 8,041 (748)
========== ======= ======= ======= ======= ======= ====== ======= ======
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Operations (cont.)
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Real U.S.
High Income Fund Estate Securities Fund Government Securities Fund
---------------------------- ------------------------ --------------------------
1996 1995 1994 1996 1995 1994 1996 1995 1994
-------- ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares.. $167,136 78,044 44,601 7,595 3,875 613 45,170 41,763 29,171
-------- ------- ------ ------ ------ ----- ------ ------- -------
Expenses:
Mortality and expense risk charges... 4,831 7,709 6,671 618 833 672 1,837 3,974 3,380
Administrative charges............... 1,208 1,927 1,668 154 208 168 459 994 845
-------- ------- ------ ------ ------ ----- ------ ------- -------
Total expenses.................. 6,039 9,636 8,339 772 1,041 840 2,296 4,968 4,225
-------- ------- ------ ------ ------ ----- ------ ------- -------
Investment income (loss), net... 161,097 68,408 36,262 6,823 2,834 (227) 42,874 36,795 24,946
Realized gains (losses) and unrealized
appreciation (depreciation)
on investments:
Realized capital gain distributions
on mutual funds.................... 8,872 - 6,061 - - - - - 2,285
-------- ------- ------ ------ ------ ----- ------ ------- -------
Realized gains (losses) on sales
of investments:
Proceeds from sales............... 64,922 47,176 51,287 5,499 22,803 5,838 37,213 33,799 131,317
Cost of investments sold.......... (57,029) (39,566) (45,931) (4,326) (19,244) (4,033) (30,654) (26,326) (99,718)
-------- ------- ------ ------ ------ ----- ------ ------- -------
Total realized gains (losses)
on sales of investments, net... 7,893 7,610 5,356 1,173 3,559 1,805 6,559 7,473 31,599
-------- ------- ------ ------ ------ ----- ------ ------- -------
Realized gains (losses)
on investments, net............ 16,765 7,610 11,417 1,173 3,559 1,805 6,559 7,473 33,884
Net change in unrealized appreciation
(depreciation) on investments...... (128,310) 122,964 (81,774) 3,354 14,488 759 (61,549) 56,173 (91,983)
-------- ------- ------ ------ ------ ----- ------ ------- -------
Total realized gains (losses)
and unrealized appreciation
(depreciation) on
investments, net............... (111,545) 130,574 (70,357) 4,527 18,047 2,564 (54,990) 63,646 (58,099)
-------- ------- ------ ------ ------ ----- ------ ------- -------
Net increase (decrease) in net assets
from operations...................... $ 49,552 198,982 (34,095) 11,350 20,881 2,337 (12,116) 100,441 (33,153)
======== ======= ====== ====== ====== ===== ====== ======= =======
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Operations (cont.)
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Utility Equity Fund Zero Coupon Fund - 1995 Zero Coupon Fund - 2000
----------------------------- ------------------------ -------------------------
1996 1995 1994 1996 1995 1994 1996 1995 1994
------- ------ ------- ---- ------- ------ ------ ------ ------
<S> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares. $ 75,714 70,912 44,904 - 17,379 15,282 19,213 13,993 14,292
-------- ------- ------- ---- ------- ------ ------ ------ ------
Expenses:
Mortality and expense risk charges.. 6,251 8,983 6,698 - (594) 1,529 961 2,179 1,769
Administrative charges.............. 1,563 2,246 1,674 - (149) 383 240 545 442
-------- ------- ------- ---- ------- ------ ------ ------ ------
Total expenses................. 7,814 11,229 8,372 - (743) 1,912 1,201 2,724 2,211
-------- ------- ------- ---- ------- ------ ------ ------ ------
Investment income (loss), net.. 67,900 59,683 36,532 - 18,122 13,370 18,012 11,269 12,081
Realized gains (losses) and
unrealized appreciation (depreciation)
on investments:
Realized capital gain distributions
on mutual funds................... - - 7,958 - 86 625 190 - 2,038
-------- ------- ------- ---- ------- ------ ------ ------ ------
Realized gains (losses) on
sales of investments:
Proceeds from sales.............. 134,932 112,297 183,473 - 273,701 4,692 2,451 3,895 14,723
Cost of investments sold......... (93,100) (88,887) (138,153) - (236,082) (3,908) (1,759) (2,731) (10,946)
-------- ------- ------- ---- ------- ------ ------ ------ ------
Total realized gains (losses)
on sales of investments, net... 41,832 23,410 45,320 - 37,619 784 692 1,164 3,777
-------- ------- ------- ---- ------- ------ ------ ------ ------
Realized gains (losses) on
investments, net............... 41,832 23,410 53,278 - 37,705 1,409 882 1,164 5,815
Net change in unrealized
appreciation (depreciation)
on investments.................... (49,053) 259,686 (253,440) - (37,457) (14,916) (27,487) 44,013 (41,764)
-------- ------- ------- ---- ------- ------ ------ ------ ------
Total realized gains (losses)
and unrealized appreciation
(depreciation) on
investments, net............... (7,221) 283,096 (200,162) - 248 (13,507) (26,605) 45,177 (35,949)
-------- ------- ------- ---- ------- ------ ------ ------ ------
Net increase (decrease) in net assets
from operations..................... $ 60,679 342,779 (163,630) - 18,370 (137) (8,593) 56,446 (23,868)
======== ======= ======= ==== ======= ====== ====== ====== ======
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Operations (cont.)
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Templeton Global
Zero Coupon Fund - 2005 Zero Coupon Fund - 2010 Income Securities Fund
------------------------- ------------------------- -----------------------
1996 1995 1994 1996 1995 1994 1996 1995 1994
------- ----- ------ ------ ----- ------ ----- ------ ------
<S> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares...... $19,668 12,928 11,417 8,167 3,109 7,316 7,568 2,871 494
------- ------ ------ ------ ------ ------ ----- ------ -----
Expenses:
Mortality and expense risk charges....... 845 2,227 1,741 106 916 926 292 470 129
Administrative charges................... 211 557 435 26 229 231 73 118 32
------- ------ ------ ------ ------ ------ ----- ------ -----
Total expenses...................... 1,056 2,784 2,176 132 1,145 1,157 365 588 161
------- ------ ------ ------ ------ ------ ----- ------ -----
Investment income (loss), net....... 18,612 10,144 9,241 8,035 1,964 6,159 7,203 2,283 333
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions
on mutual funds........................ - - 3,569 2,213 - 3,560 - - 204
------- ------ ------ ------ ------ ------ ----- ------ -----
Realized gains (losses) on sales
of investments:
Proceeds from sales................... 6,300 4,311 75,603 1,498 1,827 79,261 5,658 15,642 2,577
Cost of investments sold.............. (4,250) (2,816) (52,536) (1,403) (1,569) (81,331) (5,332) (15,250) (2,445)
------- ------ ------ ------ ------ ------ ----- ------ -----
Total realized gains (losses)
on sales of investments, net........ 2,050 1,495 23,067 95 258 (2,070) 326 392 132
------- ------ ------ ------ ------ ------ ----- ------ -----
Realized gains (losses)
on investments, net................. 2,050 1,495 26,636 2,308 258 1,490 326 392 336
Net change in unrealized appreciation
(depreciation) on investments............ (44,112) 68,320 (72,608) (27,978) 32,162 (29,320) (6,552) 6,634 (2,030)
------- ------ ------ ------ ------ ------ ----- ------ -----
Total realized gains (losses) and
unrealized appreciation
(depreciation) on investments, net.. (42,062) 69,815 (45,972) (25,670) 32,420 (27,830) (6,226) 7,026 (1,694)
------- ------ ------ ------ ------ ------ ----- ------ -----
Net increase (decrease) in net assets
from operations.......................... ($23,450) 79,959 (36,731) (17,635) 34,384 (21,671) 977 9,309 (1,361)
======= ====== ====== ====== ====== ====== ===== ====== =====
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Operations (cont.)
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Investment Grade Adjustable U.S.
Intermediate Bond Fund Income Securities Fund Government Fund
----------------------- ------------------------- --------------------------
1996 1995 1994 1996 1995 1994 1996 1995 1994
------ ------ ---- ------ ------ ------ ------ ------ -----
<S> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares........ $3,706 3,949 253 33,370 19,772 2,467 18,030 1,373 184
------ ------ --- ------ ------ ------ ------ ------ -----
Expenses:
Mortality and expense risk charges......... 205 529 169 1,917 2,265 963 265 139 27
Administrative charges..................... 51 132 42 479 566 241 66 35 7
------ ------ --- ------ ------ ------ ------ ------ -----
Total expenses........................ 256 661 211 2,396 2,831 1,204 331 174 34
------ ------ --- ------ ------ ------ ------ ------ -----
Investment income (loss), net......... 3,450 3,288 42 30,974 16,941 1,263 17,699 1,199 150
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions
on mutual funds.......................... - - 36 5,550 1,592 367 - - -
------ ------ --- ------ ------ ------ ------ ------ -----
Realized gains (losses) on sales
of investments:
Proceeds from sales..................... 2,848 44,251 577 16,603 55,949 29,910 2,347 11,606 8,733
Cost of investments sold................ (2,696) (43,145) (565) (15,183) (55,228) (30,339) (2,329) (11,571) (8,814)
------ ------ --- ------ ------ ------ ------ ------ -----
Total realized gains (losses) on
sales of investments, net............. 152 1,106 12 1,420 721 (429) 18 35 (81)
------ ------ --- ------ ------ ------ ------ ------ -----
Realized gains (losses)
on investments, net................... 152 1,106 48 6,970 2,313 (62) 18 35 (81)
Net change in unrealized appreciation
(depreciation) on investments.............. (3,320) 2,630 150 (15,459) 47,314 (9,527) (14,887) 240 (98)
------ ------ --- ------ ------ ------ ------ ------ -----
Total realized gains (losses)
and unrealized appreciation
(depreciation) on investments, net.... (3,168) 3,736 198 (8,489) 49,627 (9,589) (14,869) 275 (179)
------ ------ --- ------ ------ ------ ------ ------ -----
Net increase (decrease) in net assets
from operations............................ $ 282 7,024 240 22,485 66,568 (8,326) 2,830 1,474 (29)
====== ====== === ====== ====== ====== ====== ====== =====
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Operations (cont.)
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Templeton Templeton
Pacific Growth Fund Rising Dividends Fund International Equity Fund
---------------------------- ------------------------ -------------------------
1996 1995 1994 1996 1995 1994 1996 1995 1994
------- ------ ------- ------ ------ ----- ------ ------ -----
<S> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares..... $10,710 4,502 347 3,981 1,695 601 19,177 6,289 71
------- ------ ------- ------ ------ ----- ------ ------ -----
Expenses:
Mortality and expense risk charges...... 1,323 1,485 689 563 587 227 2,394 2,178 323
Administrative charges.................. 331 371 172 141 147 57 598 545 81
------- ------ ------- ------ ------ ----- ------ ------ -----
Total expenses..................... 1,654 1,856 861 704 734 284 2,992 2,723 404
------- ------ ------- ------ ------ ----- ------ ------ -----
Investment income (loss), net...... 9,056 2,646 (514) 3,277 961 317 16,185 3,566 (333)
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions
on mutual funds....................... 6,208 1,872 672 - - - 23,468 7,792 95
------- ------ ------- ------ ------ ----- ------ ------ -----
Realized gains (losses) on sales
of investments:
Proceeds from sales.................. 44,827 60,917 116,746 13,787 6,910 752 29,567 37,517 895
Cost of investments sold............. (39,575) (59,672) (108,205) (12,131) (6,447) (796) (26,803) (36,911) (878)
------- ------ ------- ------ ------ ----- ------ ------ -----
Total realized gains (losses)
on sales of investments, net....... 5,252 1,245 8,541 1,656 463 (44) 2,764 606 17
------- ------ ------- ------ ------ ----- ------ ------ -----
Realized gains (losses)
on investments, net................ 11,460 3,117 9,213 1,656 463 (44) 26,232 8,398 112
Net change in unrealized appreciation
(depreciation) on investments........... 15,942 13,125 (24,505) 6,234 19,701 (2,053) 29,913 19,054 (3,562)
------- ------ ------- ------ ------ ----- ------ ------ -----
Total realized gains (losses)
and unrealized appreciation
(depreciation) on investments, net. 27,402 16,242 (15,292) 7,890 20,164 (2,097) 56,145 27,452 (3,450)
------- ------ ------- ------ ------ ----- ------ ------ -----
Net increase (decrease) in net assets
from operations......................... $36,458 18,888 (15,806) 11,167 21,125 (1,780) 72,330 31,018 (3,783)
======= ====== ======= ====== ====== ===== ====== ====== =====
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Operations (cont.)
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Templeton Templeton Templeton Global
Developing Markets Equity Fund Global Growth Fund Asset Allocation Fund
-------------------------- ------------------------- ------------------
1996 1995 1994 1996 1995 1994 1996 1995 1994
------ ------ ------ ------ ------ ----- ----- ---- ---
<S> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares............ $ 2,914 562 - 8,202 1,137 - 228 4 -
------- ------ ----- ------ ------ ----- ----- --- --
Expenses:
Mortality and expense risk charges............. 1,025 3,898 3,197 1,513 1,255 65 448 25 -
Administrative charges......................... 256 975 799 378 314 16 112 6 -
------- ------ ----- ------ ------ ----- ----- --- --
Total expenses............................ 1,281 4,873 3,996 1,891 1,569 81 560 31 -
------- ------ ----- ------ ------ ----- ----- --- --
Investment income (loss), net............. 1,633 (4,311) (3,996) 6,311 (432) (81) (332) (27) -
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions
on mutual funds.............................. 5,391 132 - 8,202 - - 456 - -
------- ------ ----- ------ ------ ----- ----- --- --
Realized gains (losses) on sales of investments:
Proceeds from sales.......................... 20,302 37,410 2,518 12,721 28,814 3,901 113 168 -
Cost of investments sold..................... (18,302) (37,995) (2,585) (11,394) (28,227) (3,952) (114) (151) -
------- ------ ----- ------ ------ ----- ----- --- --
Total realized gains (losses) on sales
of investments, net....................... 2,000 (585) (67) 1,327 587 (51) (1) 17 -
------- ------ ----- ------ ------ ----- ----- --- --
Realized gains (losses) on
investments, net.......................... 7,391 (453) (67) 9,529 587 (51) 455 17 -
Net change in unrealized appreciation
(depreciation) on investments.................. 26,899 4,422 (2,951) 26,191 23,468 (144) 6,418 (15) -
------- ------ ----- ------ ------ ----- ----- --- --
Total realized gains (losses) and
unrealized appreciation (depreciation)
on investments, net....................... 34,290 3,969 (3,018) 35,720 24,055 (195) 6,873 2 -
------- ------ ----- ------ ------ ----- ----- --- --
Net increase (decrease) in net assets
from operations................................ $35,923 (342) (7,014) 42,031 23,623 (276) 6,541 (25) -
======= ====== ===== ====== ====== ===== ===== === ==
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Operations (cont.)
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Small Cap Fund Total All Funds
------------------ --------------------------------
1996 1995 1994 1996 1995 1994
---- --- --- ------ ------ --------
<S> <C> <C>
Investment income:
Dividends reinvested in fund shares............................. - - - 499,252 331,100 191,406
---- -- -- --------- --------- ---------
Expenses:
Mortality and expense risk charges.............................. $ 2 - - 32,411 52,287 36,290
Administrative charges.......................................... - - - 8,100 13,073 9,072
---- -- -- --------- --------- ---------
Total expenses............................................. 2 - - 40,511 65,360 45,362
---- -- -- --------- --------- ---------
Investment income (loss), net.............................. (2) - - 458,741 265,740 146,044
Realized gains (losses) and unrealized appreciation
(depreciation) on investments:
Realized capital gain distributions on mutual funds............ - - - 164,334 36,296 36,427
---- -- -- --------- --------- ---------
Realized gains (losses) on sales of investments:
Proceeds from sales........................................... - - - 2,374,921 2,024,083 1,351,596
Cost of investments sold...................................... - - - (2,268,677) (1,901,519) (1,212,303)
---- -- -- --------- --------- ---------
Total realized gains (losses) on sales of investments, net.. - - - 106,244 122,564 139,293
---- -- -- --------- --------- ---------
Realized gains (losses) on investments, net................. - - - 270,578 158,860 175,720
Net change in unrealized appreciation (depreciation)
on investments.................................................. 169 - - (348,116) 871,051 (677,502)
---- -- -- --------- --------- ---------
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net............ 169 - - (77,538) 1,029,911 (501,782)
---- -- -- --------- --------- ---------
Net increase (decrease) in net assets from operations............ $167 - - 381,203 1,295,651 (355,738)
==== == == ========= ========= =========
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Changes in Net Assets
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Money Market Fund Growth and Income Fund Precious Metals Fund
-------------------------------- ---------------------------- --------------------------
1996 1995 1994 1996 1995 1994 1996 1995 1994
--------- ------- ------- ------- ------- ------ ------ ------ ------
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income
(loss), net.............. $ 14,978 27,041 11,105 23,823 2,877 (357) 1,133 489 (249)
Realized gains (losses)
on investments, net....... - - - 123,507 42,515 28,987 11,313 17,696 1,595
Net change in unrealized
appreciation (depreciation)
on investments............ - - - (87,411) 184,273 (45,642) 2,882 (10,144) (2,094)
--------- --------- ------- --------- --------- ------- ------- ------- -------
Net increase (decrease)
in net assets from
operations.............. 14,978 27,041 11,105 59,919 229,665 (17,012) 15,328 8,041 (748)
--------- --------- ------- --------- --------- ------- ------- ------- -------
Policy transactions (note 5):
Purchase payments......... 1,667,413 1,140,571 835,456 180,201 233,408 15,811 8,911 24,963 988
Transfers between funds... (1,763,540) (843,539) (442,767) 101,254 111,030 97,056 (19,482) 23,956 89,216
Surrenders and
terminations............. (26,428) (48,126) (101,035) (26,091) (54,886) (49,775) (6,871) (81,139) (8,168)
Policy loan transactions.. (5,692) (251) (354) 12,088 842 (35,837) (524) 282 13
Other transactions
(note 2)................. 6,911 (124,409) (80,760) (72,491) (92,875) (13,810) (4,923) (12,614) (2,141)
--------- --------- ------- --------- --------- ------- ------- ------- -------
Net increase
(decrease) in net
assets resulting from
policy transactions..... (121,336) 124,246 210,540 194,961 197,519 13,445 (22,889) (44,552) 79,908
--------- --------- ------- --------- --------- ------- ------- ------- -------
Increase (decrease) in
net assets.................. (106,358) 151,287 221,645 254,880 427,184 (3,567) (7,561) (36,511) 79,160
--------- --------- ------- --------- --------- ------- ------- ------- -------
Net assets at beginning
of period................... 681,852 530,565 308,920 1,053,166 625,982 629,549 164,784 201,295 122,135
--------- --------- ------- --------- --------- ------- ------- ------- -------
Net assets at end of period.. $ 575,494 681,852 530,565 1,308,046 1,053,166 625,982 157,223 164,784 201,295
========= ========= ======= ========= ========= ======= ======= ======= =======
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Real U.S.
High Income Fund Estate Securities Fund Government Securities Fund
-------------------------------- ------------------------- --------------------------
1996 1995 1994 1996 1995 1994 1996 1995 1994
-------- ------- ------- ------ ------ ----- ------ ------ ------
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net. $ 161,097 68,408 36,262 6,823 2,834 (227) 42,874 36,795 24,946
Realized gains (losses)
on investments, net.......... 16,765 7,610 11,417 1,173 3,559 1,805 6,559 7,473 33,884
Net change in unrealized
appreciation (depreciation)
on investments............... (128,310) 122,964 (81,774) 3,354 14,488 759 (61,549) 56,173 (91,983)
---------- --------- --------- --------- ------- ------ ------- ------- -------
Net increase (decrease)
in net assets from
operations.................. 49,552 198,982 (34,095) 11,350 20,881 2,337 (12,116) 100,441 (33,153)
---------- --------- --------- --------- ------- ------ ------- ------- -------
Policy transactions (note 5):
Purchase payments.............. 28,601 44,935 4,791 26,082 53,203 7,592 11,779 25,128 1,041
Transfers between funds........ 586,891 37,055 (10,182) 7,936 38,779 14,088 (20,849) 24,109 (111,346)
Surrenders and terminations.... (3,551) (14,331) (14,141) (675) (8,139) - (7,837) (18,462) -
Policy loan transactions....... 8,073 1,359 9,224 (1,383) (145) 222 148 (2,060) (18)
Other transactions (note 2).... (18,942) (32,177) (16,496) (12,209) (23,363) (3,248) (9,191) (16,258) (8,802)
---------- --------- --------- --------- ------- ------ ------- ------- -------
Net increase (decrease)
in net assets resulting
from policy transactions..... 601,072 36,841 (26,804) 19,751 60,335 18,654 (25,950) 12,457 (119,125)
---------- --------- --------- --------- ------- ------ ------- ------- -------
Increase (decrease) in net assets 650,624 235,823 (60,899) 31,101 81,216 20,991 (38,066) 112,898 (152,278)
---------- --------- --------- --------- ------- ------ ------- ------- -------
Net assets at beginning of period 1,282,342 1,046,519 1,107,418 159,525 78,309 57,318 646,949 534,051 686,329
---------- --------- --------- --------- ------- ------ ------- ------- -------
Net assets at end of period...... $1,932,966 1,282,342 1,046,519 190,626 159,525 78,309 608,883 646,949 534,051
========== ========= ========= ========= ======= ====== ======= ======= =======
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Utility Equity Fund Zero Coupon Fund - 1995 Zero Coupon Fund - 2000
------------------------------- ----------------------- -------------------------
1996 1995 1994 1996 1995 1994 1996 1995 1994
-------- ------ ------ ---- ------- ------ ------ ------ ------
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net... $ 67,900 59,683 36,532 - 18,122 13,370 18,012 11,269 12,081
Realized gains (losses)
on investments, net............ 41,832 23,410 53,278 - 37,705 1,409 882 1,164 5,815
Net change in unrealized
appreciation (depreciation)
on investments................. (49,053) 259,686 (253,440) - (37,457) (14,916) (27,487) 44,013 (41,764)
---------- --------- --------- --- ------- ------- ------- ------- -------
Net increase (decrease) in
net assets from operations.. 60,679 342,779 (163,630) - 18,370 (137) (8,593) 56,446 (23,868)
---------- --------- --------- --- ------- ------- ------- ------- -------
Policy transactions (note 5):
Purchase payments............... 64,900 116,016 11,599 - - - - - -
Transfers between funds......... (32,833) 124,589 (62,456) - (270,886) - - 10,631 -
Surrenders and terminations..... (35,982) (35,449) (23,338) - - - - - (7,535)
Policy loan transactions........ (40,859) (13,309) (18,349) - - - (64) (64) (1,409)
Other transactions (note 2)..... (35,953) (62,877) (21,374) - (2,815) (3,292) (2,478) (3,831) (4,079)
---------- --------- --------- --- ------- ------- ------- ------- -------
Net increase (decrease)
in net assets resulting
from policy transactions..... (80,727) 128,970 (113,918) - (273,701) (3,292) (2,542) 6,736 (13,023)
---------- --------- --------- --- ------- ------- ------- ------- -------
Increase (decrease) in net assets. (20,048) 471,749 (277,548) - (255,331) (3,429) (11,135) 63,182 (36,891)
---------- --------- --------- --- ------- ------- ------- ------- -------
Net assets at beginning of period. 1,545,922 1,074,173 1,351,721 - 255,331 258,760 349,422 286,240 323,131
---------- --------- --------- --- ------- ------- ------- ------- -------
Net assets at end of period....... $1,525,874 1,545,922 1,074,173 - - 255,331 338,287 349,422 286,240
========== ========= ========= === ======= ======= ======= ======= =======
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Templeton Global
Zero Coupon Fund - 2005 Zero Coupon Fund - 2010 Income Securities Fund
---------------------------- --------------------------- -------------------------
1996 1995 1994 1996 1995 1994 1996 1995 1994
------- ------- ------- ------ ------ ------- ------ ------ -----
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net...... $ 18,612 10,144 9,241 8,035 1,964 6,159 7,203 2,283 333
Realized gains (losses) on
investments, net.................. 2,050 1,495 26,636 2,308 258 1,490 326 392 336
Net change in unrealized appreciation
(depreciation) on investments..... (44,112) 68,320 (72,608) (27,978) 32,162 (29,320) (6,552) 6,634 (2,030)
-------- ------- ------- ------- ------- ------- ------- ------ ------
Net increase (decrease) in
net assets from operations..... (23,450) 79,959 (36,731) (17,635) 34,384 (21,671) 977 9,309 (1,361)
-------- ------- ------- ------- ------- ------- ------- ------ ------
Policy transactions (note 5):
Purchase payments.................. - - - - - - 19,841 42,908 1,813
Transfers between funds............ 57,144 - (41,224) 51,099 - (74,884) 633 18,457 21,778
Surrenders and terminations........ (3,894) - (28,826) - - - (2,101) (6,040) -
Policy loan transactions........... - (687) (10) (176) (169) (158) 198 (638) -
Other transactions (note 2)........ (2,583) (3,625) (3,843) (1,334) (1,657) (3,419) (7,850) (17,786) (1,388)
-------- ------- ------- ------- ------- ------- ------- ------ ------
Net increase (decrease) in
net assets resulting from
policy transactions............ 50,667 (4,312) (73,903) 49,589 (1,826) (78,461) 10,721 36,901 22,203
-------- ------- ------- ------- ------- ------- ------- ------ ------
Increase (decrease) in net assets.... 27,217 75,647 (110,634) 31,954 32,558 (100,132) 11,698 46,210 20,842
-------- ------- ------- ------- ------- ------- ------- ------ ------
Net assets at beginning of period.... 337,160 261,513 372,147 115,736 83,178 183,310 89,028 42,818 21,976
-------- ------- ------- ------- ------- ------- ------- ------ ------
Net assets at end of period.......... $364,377 337,160 261,513 147,690 115,736 83,178 100,726 89,028 42,818
======== ======= ======= ======= ======= ======= ======= ====== ======
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Investment Grade Adjustable U.S.
Intermediate Bond Fund Income Securities Fund Government Fund
------------------------- ------------------------- ------------------------
1996 1995 1994 1996 1995 1994 1996 1995 1994
------ ------ ----- ------ ------ ------ ------ ------ -----
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net........... $ 3,450 3,288 42 30,974 16,941 1,263 17,699 1,199 150
Realized gains (losses) on
investments, net....................... 152 1,106 48 6,970 2,313 (62) 18 35 (81)
Net change in unrealized appreciation
(depreciation) on investments.......... (3,320) 2,630 150 (15,459) 47,314 (9,527) (14,887) 240 (98)
------- ------ ------ ------- ------- ------- ------- ------ -----
Net increase (decrease) in
net assets from operations.......... 282 7,024 240 22,485 66,568 (8,326) 2,830 1,474 (29)
------- ------ ------ ------- ------- ------- ------- ------ -----
Policy transactions (note 5):
Purchase payments....................... 6,957 14,163 1,391 141,743 223,737 22,483 4,453 12,633 5,636
Transfers between funds................. 494 8,123 75,010 53,797 186,849 153,200 208,788 11,222 (2,444)
Surrenders and terminations............. (677) (40,771) - (11,477) (14,487) - (1,178) - -
Policy loan transactions................ - - - (3,887) (19,420) (26,076) 45 (1,764) -
Other transactions (note 2)............. (3,404) (7,440) (908) (48,071) (89,585) (7,532) (2,301) (6,127) (358)
------- ------ ------ ------- ------- ------- ------- ------ -----
Net increase (decrease) in net assets
resulting from policy transactions.. 3,370 (25,925) 75,493 132,105 287,094 142,075 209,807 15,964 2,834
------- ------ ------ ------- ------- ------- ------- ------ -----
Increase (decrease) in net assets......... 3,652 (18,901) 75,733 154,590 353,662 133,749 212,637 17,438 2,805
------- ------ ------ ------- ------- ------- ------- ------ -----
Net assets at beginning of period......... 64,990 83,891 8,158 524,066 170,404 36,655 24,865 7,427 4,622
------- ------ ------ ------- ------- ------- ------- ------ -----
Net assets at end of period............... $68,642 64,990 83,891 678,656 524,066 170,404 237,502 24,865 7,427
======= ====== ====== ======= ======= ======= ======= ====== =====
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Templeton Templeton
Pacific Growth Fund Rising Dividends Fund International Equity Fund
-------------------------- -------------------------- ---------------------------
1996 1995 1994 1996 1995 1994 1996 1995 1994
------- ------ ------ ------ ------ ----- ------ ------- ------
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net....... $ 9,056 2,646 (514) 3,277 961 317 16,185 3,566 (333)
Realized gains (losses) on
investments, net................... 11,460 3,117 9,213 1,656 463 (44) 26,232 8,398 112
Net change in unrealized appreciation
(depreciation) on investments...... 15,942 13,125 (24,505) 6,234 19,701 (2,053) 29,913 19,054 (3,562)
-------- ------- ------- ------- ------- ------ ------- ------- -------
Net increase (decrease) in
net assets from operations...... 36,458 18,888 (15,806) 11,167 21,125 (1,780) 72,330 31,018 (3,783)
-------- ------- ------- ------- ------- ------ ------- ------- -------
Policy transactions (note 5):
Purchase payments................... 99,087 141,914 13,634 31,831 52,764 4,169 194,883 297,409 32,269
Transfers between funds............. 7,839 74,887 91,481 58,266 38,476 5,960 35,186 206,753 104,241
Surrenders and terminations......... (16,478) (10,270) - (7,225) (264) - (23,579) (9,230) -
Policy loan transactions............ (2,792) (27,456) (58,475) - - - (5,311) (1,799) 260
Other transactions (note 2)......... (42,195) (64,733) (9,022) (14,026) (19,499) (1,199) (66,563) (110,168) (8,625)
-------- ------- ------- ------- ------- ------ ------- ------- -------
Net increase (decrease) in
net assets resulting from
policy transactions............. 45,461 114,342 37,618 68,846 71,477 8,930 134,616 382,965 128,145
-------- ------- ------- ------- ------- ------ ------- ------- -------
Increase (decrease) in net assets..... 81,919 133,230 21,812 80,013 92,602 7,150 206,946 413,983 124,362
-------- ------- ------- ------- ------- ------ ------- ------- -------
Net assets at beginning of period..... 298,014 164,784 142,972 137,129 44,527 37,377 555,276 141,293 16,931
-------- ------- ------- ------- ------- ------ ------- ------- -------
Net assets at end of period........... $379,933 298,014 164,784 217,142 137,129 44,527 762,222 555,276 141,293
======== ======= ======= ======= ======= ====== ======= ======= =======
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Templeton Templeton Templeton Global
Developing Markets Equity Fund Global Growth Fund Asset Allocation Fund
--------------------------- ------------------------- -------------------
1996 1995 1994 1996 1995 1994 1996 1995 1994
------- ------ ----- ------ ------ ----- ------ ---- ---
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net................ $ 1,633 (4,311) (3,996) 6,311 (432) (81) (332) (27) -
Realized gains (losses) on investments, net.. 7,391 (453) (67) 9,529 587 (51) 455 17 -
Net change in unrealized appreciation
(depreciation) on investments............... 26,899 4,422 (2,951) 26,191 23,468 (144) 6,418 (15) -
-------- ------- ------ ------- ------- ------ ------- --- ---
Net increase (decrease) in net assets
from operations.......................... 35,923 (342) (7,014) 42,031 23,623 (276) 6,541 (25) -
-------- ------- ------ ------- ------- ------ ------- --- ---
Policy transactions (note 5):
Purchase payments............................ 122,186 169,165 19,997 171,392 237,156 27,117 73 - -
Transfers between funds...................... 38,903 63,297 44,206 85,565 114,188 45,458 512,106 311 -
Surrenders and terminations.................. (8,337) (18,763) - (9,153) (6,710) - - - -
Policy loan transactions..................... (1,746) - - (3,001) (3,177) - - - -
Other transactions (note 2).................. (39,648) (61,489) (1,238) (55,159) (83,481) (5,539) (186) (66) -
-------- ------- ------ ------- ------- ------ ------- --- ---
Net increase (decrease) in net assets
resulting from policy transactions....... 111,358 152,210 62,965 189,644 257,976 67,036 511,993 245 -
-------- ------- ------ ------- ------- ------ ------- --- ---
Increase (decrease) in net assets.............. 147,281 151,868 55,951 231,675 281,599 66,760 518,534 220 -
-------- ------- ------ ------- ------- ------ ------- --- ---
Net assets at beginning of period.............. 207,819 55,951 - 348,359 66,760 - 220 - -
-------- ------- ------ ------- ------- ------ ------- --- ---
Net assets at end of period.................... $355,100 207,819 55,951 580,034 348,359 66,760 518,754 220 -
======== ======= ====== ======= ======= ====== ======= === ===
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
===========================================================================================================================
Financial Statements (cont.)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994
Small Cap Fund Total All Funds
------------------- ---------------------------------
1996 1995 1994 1996 1995 1994
------ ---- ---- -------- -------- --------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net..................................... $ (2) - - 458,741 265,740 146,044
Realized gains (losses) on investments, net....................... - - - 270,578 158,860 175,720
Net change in unrealized appreciation (depreciation)
on investments................................................... 169 - - (348,116) 871,051 (677,502)
------- --- --- ---------- --------- ---------
Net increase (decrease) in net assets from operations........ 167 - - 381,203 1,295,651 (355,738)
------- --- --- ---------- --------- ---------
Policy transactions (note 5):
Purchase payments................................................. - - - 2,780,333 2,830,073 1,005,787
Transfers between funds........................................... 16,926 - - (13,877) (21,713) (3,609)
Surrenders and terminations....................................... - - - (191,534) (367,067) (232,818)
Policy loan transactions.......................................... - - - (44,883) (68,456) (130,967)
Other transactions (note 2)....................................... - - - (432,596) (836,875) (197,073)
------- --- --- ---------- --------- ---------
Net increase (decrease) in net assets resulting
from policy transactions...................................... 16,926 - - 2,097,443 1,535,962 441,320
------- --- --- ---------- --------- ---------
Increase (decrease) in net assets................................... 17,093 - - 2,478,646 2,831,613 85,582
------- --- --- ---------- --------- ---------
Net assets at beginning of period................................... - - - 8,586,624 5,755,011 5,669,429
------- --- --- ---------- --------- ---------
Net assets at end of period......................................... $17,093 - - 11,065,270 8,586,624 5,755,011
======= === === ========== ========= =========
<FN>
See accompanying notes to unaudited financial statements.
</FN>
</TABLE>
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
================================================================================
Notes to Financial Statements
June 30, 1996 (unaudited)
1. Organization
Allianz Life Variable Account A (Variable Account) is a segregated investment
account of Allianz Life Insurance Company of North America (Allianz Life)
registered with the Securities and Exchange Commission as a unit investment
trust pursuant to the provisions of the Investment Company Act of 1940 (as
amended). The Variable Account was established on May 31, 1985 and commenced
operations September 8, 1987. Accordingly, it is an accounting entity wherein
all segregated account transactions are reflected.
The Variable Account's assets are the property of Allianz Life and are held for
the benefit of the owners and other persons entitled to payments under variable
life policies issued through the Variable Account and underwritten by Allianz
Life. The assets of the Variable Account, equal to the reserves and other
liabilities of the Variable Account, are not chargeable with liabilities that
arise from any other business which Allianz Life may conduct.
The Variable Account's sub-accounts may invest, at net asset values, in one or
more of the funds of the Franklin Valuemark Funds (FVF), managed by Franklin
Advisers, Inc., in accordance with the selection made by the policy owner. Not
all funds are available as investment options for the products which comprise
the Variable Account.
Certain officers and trustees of the FVF are also officers and/or directors of
Franklin Advisers, Inc. and/or Allianz Life.
2. Significant Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Investments
Investments of the Variable Account are valued daily at market value using net
asset values provided by Franklin Advisers, Inc.
Realized investment gains include realized gain distributions received from the
respective funds and gains on the sale of fund shares as determined by the
average cost method.
Realized gain distributions are reinvested in the respective funds. Dividend
distributions received from the FVF are reinvested in additional shares of the
FVF and are recorded as income to the Variable Account on the ex-dividend date.
A Fixed Account investment option is available to variable universal life policy
owners. This account is comprised of equity and fixed income investments which
are part of the general assets of Allianz Life. The liabilities of the Fixed
Account are part of the general obligations of Allianz Life and are not included
in the Variable Account. The guaranteed minimum rate of return on the Fixed
Account is 3.5%.
The Templeton Developing Markets Equity Fund, Templeton Global Growth Fund and
Fixed Account were added as available investment options on July 1, 1994. The
Templeton Global Asset Allocation Fund and Small Cap Fund were added as
available investment options on May 1, 1995 and November 1, 1995, respectively.
The Small Cap Fund had no investment activity during 1995. The Zero Coupon -
1995 Fund matured and was closed on December 15, 1995.
The Capital Growth Fund and Templeton International Smaller Companies Fund were
added as available investment options on May 1, 1996. These funds had no
investment activity during the period ended June 30, 1996 (unaudited).
On May 1, 1995, the Equity Growth Fund name was changed to Growth and Income
Fund. The Global Income Fund name was changed to Templeton Global Income
Securities Fund on May 1, 1996.
Expenses
Asset Based Expenses
A mortality and expense risk charge is deducted from the Variable Account on a
daily basis equal, on an annual basis, to .60% of the daily net assets of the
Variable Account.
An administrative charge is deducted from the Variable Account on a daily basis
equal, on an annual basis, to .15% of the daily net assets of the Variable
Account.
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
================================================================================
Notes to Financial Statements (cont.)
June 30, 1996 (unaudited)
2. Significant Accounting Policies (cont.)
Expenses (cont.)
Contract Based Expenses
A cost of insurance charge is deducted against each policy by liquidating units.
The amount of the charge is based upon age, sex, rate class and net amount at
risk (death benefit less total cash surrender value). Total cost of insurance
charges paid by the policy owners for the period ended June 30, 1996 (unaudited)
and the years ended December 31, 1995 and 1994 were $343,065, $581,193 and
$123,231, respectively.
A deferred issue charge is deducted annually, at the end of the policy year,
from each single premium variable life policy for the first ten policy years by
liquidating units. The amount of the charge is 7% of the single premium
consisting of 2.5% for premium taxes, 4% for sales charge and .5% for policy
issue charge (in the State of California, 2.35%, 4.15% and .5%, respectively).
If the policy is surrendered before the full amount is collected, the
uncollected portion of this charge is deducted from the account value. Total
deferred issue charges paid by the policy owners for the period ended June 30,
1996 (unaudited) and the years ended December 31, 1995 and 1994 were $24,480,
$28,613 and $32,516, respectively.
A policy charge is deducted on each monthly anniversary date from each variable
universal life policy by liquidating units. The amount of the charge is equal to
2.5% of each premium payment for premium taxes plus $20 per month for the first
policy year and $9 per month guaranteed thereafter. Currently, Allianz Life has
agreed to voluntarily limit the charge to $5 per month after the first policy
year. Total policy charges paid by the policy owners for the period ended June
30, 1996 (unaudited) and the years ended December 31, 1995 and 1994 were
$100,993, $292,695 and $64,030, respectively.
Twelve free transfers are permitted each contract year. Thereafter, the fee is
the lesser of $25 or 2% of the amount transferred. No transfer charges were paid
by the policy owners during the period ended June 30, 1996 (unaudited) and the
years ended December 31, 1995 and 1994, respectively. Transfers to the Fixed
Account during the period ended June 30, 1996 (unaudited) and the years ended
December 31, 1995 and 1994 were $13,877, $21,713 and $3,609, respectively.
The cost of insurance, deferred issue, policy and transfer charges paid are
reflected in the Statements of Changes in Net Assets as other transactions.
3. Investment Transactions
The sub-account purchases of fund shares, including reinvestment of dividend
distributions, were as follows during the period ended June 30, 1996
(unaudited):
<TABLE>
<CAPTION>
<S> <C>
Money Market Fund ................................ $1,735,798
Growth and Income Fund............................ 412,588
Precious Metals Fund.............................. 28,170
High Income Fund.................................. 842,003
Real Estate Securities Fund....................... 32,845
U.S. Government Securities Fund................... 56,433
Utility Equity Fund............................... 129,918
Zero Coupon Fund - 2000........................... 19,311
Zero Coupon Fund - 2005........................... 76,636
Zero Coupon Fund - 2010........................... 61,467
Templeton Global Income Securities Fund........... 23,946
Investment Grade Intermediate Bond Fund........... 9,924
Income Securities Fund............................ 187,629
Adjustable U.S. Government Fund................... 230,185
Templeton Pacific Growth Fund..................... 107,207
Rising Dividends Fund............................. 86,612
Templeton International Equity Fund............... 206,828
Templeton Developing Markets Equity Fund.......... 139,966
Templeton Global Growth Fund...................... 218,770
Templeton Global Asset Allocation Fund............ 512,759
Small Cap Fund.................................... 16,927
</TABLE>
4. Federal Income Taxes
Operations of the Variable Account form a part of, and are taxed with,
operations of Allianz Life, which is taxed as a life insurance company under the
Internal Revenue Code.
Allianz Life does not expect to incur any federal income taxes in the operation
of the Variable Account. If, in the future, Allianz Life determines that the
Variable Account may incur federal income taxes, it may then assess a charge
against the Variable Account for such taxes.
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
================================================================================
Notes to Financial Statements (cont.)
June 30, 1996 (unaudited)
5. Policy Transactions - Unit Activity
Transactions in units for each fund for the period ended June 30, 1996
(unaudited) and the years ended December 31, 1995 and 1994, were as follows:
<TABLE>
<CAPTION>
Growth Real U.S. Zero
Money and Precious High Estate Government Utility Coupon
Market Income Metals Income Securities Securities Equity Fund -
Fund Fund Fund Fund Fund Fund Fund 1995
------- ----- ----- ----- ------ ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Units outstanding at December 31, 1993.... 22,430 29,140 7,933 65,065 3,265 38,612 66,241 14,511
Policy transactions:
Purchase payments........................ 59,285 751 67 265 419 62 654 -
Transfers between funds.................. (31,325) 4,606 6,162 (637) 861 (6,440) (3,468) -
Surrenders and terminations.............. (7,250) (2,364) (578) (869) - - (1,253) -
Policy loan transactions................. (25) (1,687) (1) 558 14 (1) (1,010) -
Other transactions....................... (5,734) (651) (142) (1,002) (191) (519) (1,195) (186)
------- ------ ------ ------ ----- ------ ------ ------
Net increase (decrease) in units
resulting from policy transactions.. 14,951 655 5,508 (1,685) 1,103 (6,898) (6,272) (186)
------- ------ ------ ------ ----- ------ ------ ------
Units outstanding at December 31, 1994.... 37,381 29,795 13,441 63,380 4,368 31,714 59,969 14,325
======= ====== ====== ====== ===== ====== ====== ======
Policy transactions:
Purchase payments........................ 77,441 9,561 1,662 2,463 2,884 1,355 5,744 -
Transfers between funds.................. (57,166) 4,664 1,698 1,925 2,056 1,281 6,185 (14,174)
Surrenders and terminations.............. (3,275) (2,237) (5,150) (772) (427) (965) (1,893) -
Policy loan transactions................. (17) 38 20 75 (7) (111) (695) -
Other transactions....................... (8,596) (3,800) (840) (1,738) (1,246) (872) (3,112) (151)
------- ------ ------ ------ ----- ------ ------ ------
Net increase (decrease) in units
resulting from policy transactions.. 8,387 8,226 (2,610) 1,953 3,260 688 6,229 (14,325)
------- ------ ------ ------ ----- ------ ------ ------
Units outstanding at December 31, 1995.... 45,768 38,021 10,831 65,333 7,628 32,402 66,198 -
======= ====== ====== ====== ===== ====== ====== ======
Policy transactions (unaudited):
Purchase payments........................ 108,969 6,462 506 1,425 1,206 600 2,789 -
Transfers between funds.................. (115,307) 3,512 (1,092) 29,217 364 (1,077) (1,376) -
Surrenders and terminations.............. (1,770) (926) (382) (177) (32) (400) (1,537) -
Policy loan transactions................. (376) 442 (29) 405 (64) 7 (1,721) -
Other transactions....................... 537 (2,600) (282) (941) (565) (468) (1,545) -
------- ------ ------ ------ ----- ------ ------ ------
Net increase (decrease) in units
resulting from policy transactions.. (7,947) 6,890 (1,279) 29,929 909 (1,338) (3,390) -
------- ------ ------ ------ ----- ------ ------ ------
Units outstanding at
June 30, 1996 (unaudited)................ 37,821 44,911 9,552 95,262 8,537 31,064 62,808 -
======= ====== ====== ====== ===== ====== ====== ======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
================================================================================
Notes to Financial Statements (cont.)
June 30, 1996 (unaudited)
5. Policy Transactions - Unit Activity (cont.)
Zero Zero Zero Templeton Investment Adjustable Templeton
Coupon Coupon Coupon Global Income Grade Income U.S. Pacific
Fund - Fund - Fund - Securities Intermediate Securities Government Growth
2000 2005 2010 Fund Bond Fund Fund Fund Fund
----- ----- ----- --------- -------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Units outstanding at
December 31, 1993................... 15,249 16,042 7,408 1,537 582 2,104 403 9,924
Policy transactions:
Purchase payments................... - - - 133 100 1,334 495 998
Transfers between funds............. - (1,953) (3,442) 1,607 5,385 9,100 (213) 6,850
Surrenders and terminations......... (379) (1,348) - - - - - -
Policy loan transactions............ (72) - (7) - - (1,567) - (4,457)
Other transactions.................. (204) (182) (155) (102) (65) (457) (31) (680)
------ ------ ----- ----- ----- ------- ------ ------
Net increase (decrease)
in units resulting from
policy transactions............ (655) (3,483) (3,604) 1,638 5,420 8,410 251 2,711
------ ------ ----- ----- ----- ------- ------ ------
Units outstanding at
December 31, 1994................... 14,594 12,559 3,804 3,175 6,002 10,514 654 12,635
====== ====== ===== ===== ===== ======= ====== ======
Policy transactions:
Purchase payments................... - - - 2,992 963 12,397 1,060 10,718
Transfers between funds............. 458 - - 1,333 562 10,593 966 5,757
Surrenders and terminations......... - - - (416) (2,761) (783) - (779)
Policy loan transactions............ (3) (30) (6) (44) - (1,137) (151) (2,141)
Other transactions.................. (175) (147) (63) (1,239) (507) (4,970) (516) (4,868)
------ ------ ----- ----- ----- ------- ------ ------
Net increase (decrease)
in units resulting from
policy transactions............ 280 (177) (69) 2,626 (1,743) 16,100 1,359 8,687
------ ------ ----- ----- ----- ------- ------ ------
Units outstanding at
December 31, 1995................... 14,874 12,382 3,735 5,801 4,259 26,614 2,013 21,322
====== ====== ===== ===== ===== ======= ====== ======
Policy transactions (unaudited):
Purchase payments................... - - - 1,303 457 7,098 356 6,700
Transfers between funds............. - 2,259 1,673 42 33 2,721 16,676 396
Surrenders and terminations......... - (149) - (138) (44) (574) (94) (1,072)
Policy loan transactions............ (3) - (7) 13 - (195) 4 (183)
Other transactions.................. (108) (103) (48) (516) (224) (2,412) (185) (2,836)
------ ------ ----- ----- ----- ------- ------ ------
Net increase (decrease)
in units resulting from
policy transactions............ (111) 2,007 1,618 704 222 6,638 16,757 3,005
------ ------ ----- ----- ----- ------- ------ ------
Units outstanding at
June 30, 1996 (unaudited)........... 14,763 14,389 5,353 6,505 4,481 33,252 18,770 24,327
====== ====== ===== ===== ===== ======= ====== ======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
================================================================================
Notes to Financial Statements (cont.)
June 30, 1996 (unaudited)
5. Policy Transactions - Unit Activity (cont.)
Templeton Templeton
Templeton Developing Templeton Global
Rising International Markets Global Asset Small Total
Dividends Equity Equity Growth Allocation Cap All
Fund Fund Fund Fund Fund Fund Funds
------ -------- ------- ------- ------- ---- ------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding at December 31, 1993........... 3,576 1,368 - - - - 305,390
Policy transactions:
Purchase payments............................... 418 2,526 2,054 2,721 - - 72,282
Transfers between funds......................... 601 8,168 4,590 4,585 - - 5,037
Surrenders and terminations..................... - - - - - - (14,041)
Policy loan transactions........................ - 20 - - - - (8,235)
Other transactions.............................. (121) (679) (545) (558) - - (13,399)
------ ------ ------ ------ ------ ----- -------
Net increase (decrease) in units
resulting from policy transactions......... 898 10,035 6,099 6,748 - - 41,644
------ ------ ------ ------ ------ ----- -------
Units outstanding at December 31, 1994........... 4,474 11,403 6,099 6,748 - - 347,034
====== ====== ====== ====== ====== ===== =======
Policy transactions:
Purchase payments............................... 4,625 22,647 18,183 22,517 - - 197,212
Transfers between funds......................... 3,323 15,984 6,624 11,063 27 - 3,159
Surrenders and terminations..................... (23) (691) (2,067) (627) - - (22,866)
Policy loan transactions........................ - (130) (211) (307) - - (4,857)
Other transactions.............................. (1,699) (8,383) (6,418) (7,923) (6) - (57,269)
------ ------ ------ ------ ------ ----- -------
Net increase (decrease) in units
resulting from policy transactions......... 6,226 29,427 16,111 24,723 21 - 115,379
------ ------ ------ ------ ------ ----- -------
Units outstanding at December 31, 1995........... 10,700 40,830 22,210 31,471 21 - 462,413
====== ====== ====== ====== ====== ===== =======
Policy transactions (unaudited):
Purchase payments............................... 2,391 13,483 11,995 14,716 7 - 180,463
Transfers between funds......................... 4,369 2,360 3,488 7,068 45,221 1,422 1,969
Surrenders and terminations..................... (548) (1,605) (785) (791) - - (11,024)
Policy loan transactions........................ - (364) (169) (260) - - (2,500)
Other transactions.............................. (1,055) (4,614) (3,881) (4,745) (17) - (26,608)
------ ------ ------ ------ ------ ----- -------
Net increase (decrease) in units
resulting from policy transactions......... 5,157 9,260 10,648 15,988 45,211 1,422 142,300
------ ------ ------ ------ ------ ----- -------
Units outstanding at June 30, 1996 (unaudited)... 15,857 50,090 32,858 47,459 45,232 1,422 604,713
====== ====== ====== ====== ====== ===== =======
</TABLE>
