ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements
December 31, 1995
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
INDEPENDENT AUDITORS' REPORT
The Board of Directors of Allianz Life Insurance Company of North America and
Policyholders of Allianz Life Variable Account A:
We have audited the accompanying statements of assets and liabilities of the
sub-accounts of Allianz Life Variable Account A as of December 31, 1995, and
the related statements of operations and changes in net assets for each of the
years in the three-year period then ended. These financial statements are the
responsibility of the Variable 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.
Investment securities held in custody for the benefit of the Variable Account
were confirmed to us by the Franklin Valuemark Funds. 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 assets and liabilities of the sub-accounts of
Allianz Life Variable Account A at December 31, 1995, and the results of their
operations and the changes in their net assets for each of the years in the
three-year period then ended, in conformity with generally accepted accounting
principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
January 22, 1996
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Assets and Liabilities
December 31, 1995
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, 688,783
shares, cost $688,783 $688,783 - - - - -
Growth and Income Fund,
61,923 shares, cost $784,975 - 1,061,358 - - - -
Precious Metals Fund,
11,972 shares, cost $155,552 - - 168,569 - - -
High Income Fund, 94,672
shares, cost $1,083,932 - - - 1,293,220 - -
Real Estate Securities Fund,
9,253 shares, cost $129,563 - - - - 161,011 -
U.S. Government Securities Fund,
46,630 shares, cost $493,541 - - - - - 652,815
-------- ---------- -------- --------- ----------- ----------
Total assets 688,783 1,061,358 168,569 1,293,220 161,011 652,815
-------- ---------- -------- --------- ----------- ----------
Liabilities:
Accrued mortality and expense risk charges 5,545 6,553 3,028 8,702 1,189 4,693
Accrued administrative charges 1,386 1,639 757 2,176 297 1,173
-------- ---------- -------- --------- ----------- ----------
Total liabilities 6,931 8,192 3,785 10,878 1,486 5,866
-------- ---------- -------- --------- ----------- ----------
Net assets $681,852 1,053,166 164,784 1,282,342 159,525 646,949
======== ========== ======== ========= =========== ==========
Policy owners' equity (note 5) $681,852 1,053,166 164,784 1,282,342 159,525 646,949
======== ========== ======== ========= =========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Assets and Liabilities (Continued)
December 31, 1995
Zero Zero Zero
Utility Coupon Coupon Coupon Global
Equity Fund - Fund - Fund - Income
Fund 2000 2005 2010 Fund
---------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C>
Investments at net asset value:
Franklin Valuemark Funds:
Utility Equity Fund, 87,060
shares, cost $1,090,116 $1,558,380 - - - -
Zero Coupon Fund - 2000,
22,437 shares, cost $242,285 - 352,928 - - -
Zero Coupon Fund - 2005,
19,602 shares, cost $206,775 - - 340,680 - -
Zero Coupon Fund - 2010,
6,514 shares, cost $87,335 - - - 117,505 -
Global Income Fund,
6,678 shares, cost $83,776 - - - - 89,882
---------- ------- ------- ------- ------
Total assets 1,558,380 352,928 340,680 117,505 89,882
---------- ------- ------- ------- ------
Liabilities:
Accrued mortality and expense risk charges 9,966 2,805 2,816 1,415 683
Accrued administrative charges 2,492 701 704 354 171
---------- ------- ------- ------- ------
Total liabilities 12,458 3,506 3,520 1,769 854
---------- ------- ------- ------- ------
Net assets $1,545,922 349,422 337,160 115,736 89,028
========== ======= ======= ======= ======
Policy owners' equity (note 5) $1,545,922 349,422 337,160 115,736 89,028
========== ======= ======= ======= ======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Assets and Liabilities (Continued)
December 31, 1995
Investment Adjustable Templeton Templeton
Grade Income U.S. Pacific Rising International
Intermediate Securities Government Growth Dividends Equity
Bond Fund Fund Fund Fund Fund Fund
------------- ---------- ---------- --------- --------- -------------
<S> <C> <C> <C> <C> <C> <C>
Investments at net asset value:
Franklin Valuemark Funds:
Investment Grade Intermediate Bond
Fund, 4,694 shares, cost $62,378 $ 65,953 - - - - -
Income Securities Fund,
32,025 shares, cost $485,185 - 527,453 - - - -
Adjustable U.S. Government Fund,
2,355 shares, cost $25,140 - - 25,340 - - -
Templeton Pacific Growth Fund,
21,600 shares, cost $283,997 - - - 300,461 - -
Rising Dividends Fund,
10,919 shares, cost $121,353 - - - - 138,230 -
Templeton International Equity Fund,
41,923 shares, cost $541,531 - - - - - 558,415
------------- ---------- ---------- --------- --------- -------------
Total assets 65,953 527,453 25,340 300,461 138,230 558,415
------------- ---------- ---------- --------- --------- -------------
Liabilities:
Accrued mortality and expense risk charges 771 2,710 380 1,958 881 2,511
Accrued administrative charges 192 677 95 489 220 628
------------- ---------- ---------- --------- --------- -------------
Total liabilities 963 3,387 475 2,447 1,101 3,139
------------- ---------- ---------- --------- --------- -------------
Net assets $ 64,990 524,066 24,865 298,014 137,129 555,276
============= ========== ========== ========= ========= =============
Policy owners' equity (note 5) $ 64,990 524,066 24,865 298,014 137,129 555,276
============= ========== ========== ========= ========= =============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Assets and Liabilities (Continued)
December 31, 1995
Templeton Templeton
Developing Templeton Global
Markets Global Asset Total
Equity Growth Allocation All
Fund Fund Fund Funds
----------- --------- ---------- ---------
<S> <C> <C> <C> <C>
Investments at net asset value:
Franklin Valuemark Funds:
Templeton Developing Markets Equity
Fund, 21,362 shares, cost $207,452 $ 208,923 - -
Templeton Global Growth Fund,
29,782 shares, cost $326,613 - 349,937 -
Templeton Global Asset Allocation
Fund, 21 shares, cost $236 - - 221
----------- --------- ----------
Total assets 208,923 349,937 221 8,660,064
----------- --------- ---------- ---------
Liabilities:
Accrued mortality and expense risk charges 883 1,262 1 58,752
Accrued administrative charges 221 316 - 14,688
----------- --------- ---------- ---------
Total liabilities 1,104 1,578 1 73,440
----------- --------- ---------- ---------
Net assets $ 207,819 348,359 220 8,586,624
=========== ========= ========== =========
Policy owners' equity (note 5) $ 207,819 348,359 220 8,586,624
=========== ========= ========== =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Operations
For the years ended December 31, 1995, 1994 and 1993
Growth Growth Growth
Money Money Money and and and
Market Market Market Income Income Income
Fund Fund Fund Fund Fund Fund
---------- --------- --------- -------- -------- ---------
1995 1994 1993 1995 1994 1993
---------- --------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ 33,164 14,466 9,437 10,179 4,301 5,989
---------- --------- --------- -------- -------- ---------
Expenses:
Mortality and expense risk charges 4,898 2,689 2,266 5,842 3,726 4,110
Administrative charges 1,225 672 567 1,460 932 1,028
---------- --------- --------- -------- -------- ---------
Total expenses 6,123 3,361 2,833 7,302 4,658 5,138
---------- --------- --------- -------- -------- ---------
Investment income (loss), net 27,041 11,105 6,604 2,877 (357) 851
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds - - - 22,157 8,957 -
---------- --------- --------- -------- -------- ---------
Realized gains (losses) on sales of investments:
Proceeds from sales 965,636 513,009 202,473 97,576 114,661 228,561
Cost of investments sold (965,636) (513,009) (202,473) (77,218) (94,631) (188,907)
---------- --------- --------- -------- -------- ---------
Total realized gains (losses) on
sales of investments, net - - - 20,358 20,030 39,654
---------- --------- --------- -------- -------- ---------
Realized gains (losses) on investments, net - - - 42,515 28,987 39,654
Net change in unrealized appreciation
(depreciation) on investments - - - 184,273 (45,642) 19,332
---------- --------- --------- -------- -------- ---------
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net - - - 226,788 (16,655) 58,986
---------- --------- --------- -------- -------- ---------
Net increase (decrease) in net assets from operations $ 27,041 11,105 6,604 229,665 (17,012) 59,837
========== ========= ========= ======== ======== =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Operations (Continued)
For the years ended December 31, 1995, 1994 and 1993
Precious Precious Precious High High High
Metals Metals Metals Income Income Income
Fund Fund Fund Fund Fund Fund
---------- --------- --------- -------- -------- --------
1995 1994 1993 1995 1994 1993
---------- --------- --------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ 3,600 626 1,029 78,044 44,601 37,831
---------- --------- --------- -------- -------- --------
Expenses:
Mortality and expense risk charges 2,489 700 999 7,709 6,671 6,406
Administrative charges 622 175 250 1,927 1,668 1,602
---------- --------- --------- -------- -------- --------
Total expenses 3,111 875 1,249 9,636 8,339 8,008
---------- --------- --------- -------- -------- --------
Investment income (loss), net 489 (249) (220) 68,408 36,262 29,823
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds 2,665 - - - 6,061 -
---------- --------- --------- -------- -------- --------
Realized gains (losses) on sales of investments:
Proceeds from sales 161,878 11,123 220,760 47,176 51,287 40,079
Cost of investments sold (146,847) (9,528) (208,874) (39,566) (45,931) (35,650)
---------- --------- --------- -------- -------- --------
Total realized gains (losses) on
sales of investments, net 15,031 1,595 11,886 7,610 5,356 4,429
---------- --------- --------- -------- -------- --------
Realized gains (losses) on investments, net 17,696 1,595 11,886 7,610 11,417 4,429
Net change in unrealized appreciation
(depreciation) on investments (10,144) (2,094) 49,249 122,964 (81,774) 110,533
---------- --------- --------- -------- -------- --------
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net 7,552 (499) 61,135 130,574 (70,357) 114,962
---------- --------- --------- -------- -------- --------
Net increase (decrease) in net assets from operations $ 8,041 (748) 60,915 198,982 (34,095) 144,785
========== ========= ========= ======== ======== ========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Operations (Continued)
For the years ended December 31, 1995, 1994 and 1993
Real Real Real U.S. U.S. U.S.
Estate Estate Estate Government Government Government
Securities Securities Securities Securities Securities Securities
Fund Fund Fund Fund Fund Fund
------------ ----------- ----------- ----------- ----------- -----------
1995 1994 1993 1995 1994 1993
------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ 3,875 613 603 41,763 29,171 24,746
------------ ----------- ----------- ----------- ----------- -----------
Expenses:
Mortality and expense risk charges 833 672 385 3,974 3,380 4,158
Administrative charges 208 168 96 994 845 1,039
------------ ----------- ----------- ----------- ----------- -----------
Total expenses 1,041 840 481 4,968 4,225 5,197
------------ ----------- ----------- ----------- ----------- -----------
Investment income (loss), net 2,834 (227) 122 36,795 24,946 19,549
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain
distributions on mutual funds - - - - 2,285 3,795
------------ ----------- ----------- ----------- ----------- -----------
Realized gains (losses) on
sales of investments:
Proceeds from sales 22,803 5,838 10,124 33,799 131,317 22,770
Cost of investments sold (19,244) (4,033) (7,269) (26,326) (99,718) (16,285)
------------ ----------- ----------- ----------- ----------- -----------
Total realized gains (losses) on
sales of investments, net 3,559 1,805 2,855 7,473 31,599 6,485
------------ ----------- ----------- ----------- ----------- -----------
Realized gains (losses) on investments, net 3,559 1,805 2,855 7,473 33,884 10,280
Net change in unrealized appreciation
(depreciation) on investments 14,488 759 5,891 56,173 (91,983) 27,413
------------ ----------- ----------- ----------- ----------- -----------
Total realized gains (losses) and
unrealized appreciation (depreciation)
on investments, net 18,047 2,564 8,746 63,646 (58,099) 37,693
------------ ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
net assets from operations $ 20,881 2,337 8,868 100,441 (33,153) 57,242
============ =========== =========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Operations (Continued)
For the years ended December 31, 1995, 1994 and 1993
Zero Zero Zero
Utility Utility Utility Coupon Coupon Coupon
Equity Equity Equity Fund - Fund - Fund -
Fund Fund Fund 1995 1995 1995
--------- --------- --------- --------- -------- -------
1995 1994 1993 1995 1994 1993
--------- --------- --------- --------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ 70,912 44,904 25,962 17,379 15,282 15,253
--------- --------- --------- --------- -------- -------
Expenses:
Mortality and expense risk charges 8,983 6,698 8,255 (594) 1,529 1,574
Administrative charges 2,246 1,674 2,064 (149) 383 394
--------- --------- --------- --------- -------- -------
Total expenses 11,229 8,372 10,319 (743) 1,912 1,968
--------- --------- --------- --------- -------- -------
Investment income (loss), net 59,683 36,532 15,643 18,122 13,370 13,285
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds - 7,958 138 86 625 3,220
--------- --------- --------- --------- -------- -------
Realized gains (losses) on sales of investments:
Proceeds from sales 112,297 183,473 185,645 273,701 4,692 5,351
Cost of investments sold (88,887) (138,153) (121,008) (236,082) (3,908) (4,170)
--------- --------- --------- --------- -------- -------
Total realized gains (losses) on
sales of investments, net 23,410 45,320 64,637 37,619 784 1,181
--------- --------- --------- --------- -------- -------
Realized gains (losses) on investments, net 23,410 53,278 64,775 37,705 1,409 4,401
Net change in unrealized appreciation
(depreciation) on investments 259,686 (253,440) 47,455 (37,457) (14,916) (1,412)
--------- --------- --------- --------- -------- -------
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net 283,096 (200,162) 112,230 248 (13,507) 2,989
--------- --------- --------- --------- -------- -------
Net increase (decrease) in net assets from operations $342,779 (163,630) 127,873 18,370 (137) 16,274
========= ========= ========= ========= ======== =======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Operations (Continued)
For the years ended December 31, 1995, 1994 and 1993
Zero Zero Zero Zero Zero Zero
Coupon Coupon Coupon Coupon Coupon Coupon
Fund - Fund - Fund - Fund - Fund - Fund -
2000 2000 2000 2005 2005 2005
-------- -------- ------- ------- -------- --------
1995 1994 1993 1995 1994 1993
-------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $13,993 14,292 12,537 12,928 11,417 12,406
-------- -------- ------- ------- -------- --------
Expenses:
Mortality and expense risk charges 2,179 1,769 1,943 2,227 1,741 2,279
Administrative charges 545 442 486 557 435 570
-------- -------- ------- ------- -------- --------
Total expenses 2,724 2,211 2,429 2,784 2,176 2,849
-------- -------- ------- ------- -------- --------
Investment income (loss), net 11,269 12,081 10,108 10,144 9,241 9,557
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds - 2,038 637 - 3,569 138
-------- -------- ------- ------- -------- --------
Realized gains (losses) on sales of investments:
Proceeds from sales 3,895 14,723 6,582 4,311 75,603 47,063
Cost of investments sold (2,731) (10,946) (4,419) (2,816) (52,536) (30,041)
-------- -------- ------- ------- -------- --------
Total realized gains (losses) on
sales of investments, net 1,164 3,777 2,163 1,495 23,067 17,022
-------- -------- ------- ------- -------- --------
Realized gains (losses) on investments, net 1,164 5,815 2,800 1,495 26,636 17,160
Net change in unrealized appreciation
(depreciation) on investments 44,013 (41,764) 30,329 68,320 (72,608) 44,629
-------- -------- ------- ------- -------- --------
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net 45,177 (35,949) 33,129 69,815 (45,972) 61,789
-------- -------- ------- ------- -------- --------
Net increase (decrease) in net assets from operations $56,446 (23,868) 43,237 79,959 (36,731) 71,346
======== ======== ======= ======= ======== ========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Operations (Continued)
For the years ended December 31, 1995, 1994 and 1993
Zero Zero Zero
Coupon Coupon Coupon Global Global Global
Fund - Fund - Fund - Income Income Income
2010 2010 2010 Fund Fund Fund
-------- -------- ------- -------- ------- -------
1995 1994 1993 1995 1994 1993
-------- -------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ 3,109 7,316 5,501 2,871 494 798
-------- -------- ------- -------- ------- -------
Expenses:
Mortality and expense risk charges 916 926 827 470 129 151
Administrative charges 229 231 207 118 32 38
-------- -------- ------- -------- ------- -------
Total expenses 1,145 1,157 1,034 588 161 189
-------- -------- ------- -------- ------- -------
Investment income (loss), net 1,964 6,159 4,467 2,283 333 609
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds - 3,560 224 - 204 259
-------- -------- ------- -------- ------- -------
Realized gains (losses) on sales of investments:
Proceeds from sales 1,827 79,261 3,258 15,642 2,577 449
Cost of investments sold (1,569) (81,331) (2,479) (15,250) (2,445) (429)
-------- -------- ------- -------- ------- -------
Total realized gains (losses) on
sales of investments, net 258 (2,070) 779 392 132 20
-------- -------- ------- -------- ------- -------
Realized gains (losses) on investments, net 258 1,490 1,003 392 336 279
Net change in unrealized appreciation
(depreciation) on investments 32,162 (29,320) 10,850 6,634 (2,030) 2,156
-------- -------- ------- -------- ------- -------
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net 32,420 (27,830) 11,853 7,026 (1,694) 2,435
-------- -------- ------- -------- ------- -------
Net increase (decrease) in net assets from operations $34,384 (21,671) 16,320 9,309 (1,361) 3,044
======== ======== ======= ======== ======= =======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Operations (Continued)
For the years ended December 31, 1995, 1994 and 1993
Investment Investment Investment
Grade Grade Grade Income Income Income
Intermediate Intermediate Intermediate Securities Securities Securities
Bond Fund Bond Fund Bond Fund Fund Fund Fund
-------------- ------------- ------------- ----------- ----------- -----------
1995 1994 1993 1995 1994 1993
-------------- ------------- ------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ 3,949 253 195 19,772 2,467 813
-------------- ------------- ------------- ----------- ----------- -----------
Expenses:
Mortality and expense risk charges 529 169 51 2,265 963 221
Administrative charges 132 42 13 566 241 55
-------------- ------------- ------------- ----------- ----------- -----------
Total expenses 661 211 64 2,831 1,204 276
-------------- ------------- ------------- ----------- ----------- -----------
Investment income (loss), net 3,288 42 131 16,941 1,263 537
Realized gains (losses) and unrealized
appreciation (depreciation) on investments
Realized capital gain
distributions on mutual funds - 36 32 1,592 367 118
-------------- ------------- ------------- ----------- ----------- -----------
Realized gains (losses)
on sales of investments:
Proceeds from sales 44,251 577 85 55,949 29,910 5,434
Cost of investments sold (43,145) (565) (77) (55,228) (30,339) (4,871)
-------------- ------------- ------------- ----------- ----------- -----------
Total realized gains (losses) on
sales of investments, net 1,106 12 8 721 (429) 563
-------------- ------------- ------------- ----------- ----------- -----------
Realized gains (losses)
on investments, net 1,106 48 40 2,313 (62) 681
Net change in unrealized appreciation
(depreciation) on investments 2,630 150 419 47,314 (9,527) 4,145
-------------- ------------- ------------- ----------- ----------- -----------
Total realized gains (losses)
and unrealized appreciation
(depreciation) on investments, net 3,736 198 459 49,627 (9,589) 4,826
-------------- ------------- ------------- ----------- ----------- -----------
Net increase (decrease) in
net assets from operations $ 7,024 240 590 66,568 (8,326) 5,363
============== ============= ============= =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Operations (Continued)
For the years ended December 31, 1995, 1994 and 1993
Adjustable Adjustable Adjustable Templeton Templeton Templeton
U.S. U.S. U.S. Pacific Pacific Pacific
Government Government Government Growth Growth Growth
Fund Fund Fund Fund Fund Fund
------------ ----------- ----------- ---------- ---------- ----------
1995 1994 1993 1995 1994 1993
------------ ----------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ 1,373 184 192 4,502 347 -
------------ ----------- ----------- ---------- ---------- ----------
Expenses:
Mortality and expense risk charges 139 27 34 1,485 689 315
Administrative charges 35 7 9 371 172 79
------------ ----------- ----------- ---------- ---------- ----------
Total expenses 174 34 43 1,856 861 394
------------ ----------- ----------- ---------- ---------- ----------
Investment income (loss), net 1,199 150 149 2,646 (514) (394)
Realized gains (losses) and unrealized
appreciation (depreciation) on investments
Realized capital gain
distributions on mutual funds - - - 1,872 672 -
------------ ----------- ----------- ---------- ---------- ----------
Realized gains (losses)
on sales of investments:
Proceeds from sales 11,606 8,733 82 60,917 116,746 743
Cost of investments sold (11,571) (8,814) (80) (59,672) (108,205) (666)
------------ ----------- ----------- ---------- ---------- ----------
Total realized gains (losses) on
sales of investments, net 35 (81) 2 1,245 8,541 77
------------ ----------- ----------- ---------- ---------- ----------
Realized gains (losses) on investments, net 35 (81) 2 3,117 9,213 77
Net change in unrealized appreciation
(depreciation) on investments 240 (98) (25) 13,125 (24,505) 28,189
------------ ----------- ----------- ---------- ---------- ----------
Total realized gains (losses)
and unrealized appreciation
(depreciation) on investments, net 275 (179) (23) 16,242 (15,292) 28,266
------------ ----------- ----------- ---------- ---------- ----------
Net increase (decrease) in
net assets from operations $ 1,474 (29) 126 18,888 (15,806) 27,872
============ =========== =========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Operations (Continued)
For the years ended December 31, 1995, 1994 and 1993
Rising Rising Rising Templeton Templeton Templeton
Dividends Dividends Dividends International International International
Fund Fund Fund Equity Fund Equity Fund Equity Fund
----------- ---------- ---------- -------------- -------------- --------------
1995 1994 1993 1995 1994 1993
----------- ---------- ---------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ 1,695 601 99 6,289 71 -
----------- ---------- ---------- -------------- -------------- --------------
Expenses:
Mortality and expense risk charges 587 227 208 2,178 323 93
Administrative charges 147 57 52 545 81 23
----------- ---------- ---------- -------------- -------------- --------------
Total expenses 734 284 260 2,723 404 116
----------- ---------- ---------- -------------- -------------- --------------
Investment income (loss), net 961 317 (161) 3,566 (333) (116)
Realized gains (losses) and
unrealized appreciation
(depreciation) on investments:
Realized capital gain
distributions on mutual funds - - - 7,792 95 -
----------- ---------- ---------- -------------- -------------- --------------
Realized gains (losses)
on sales of investments:
Proceeds from sales 6,910 752 394 37,517 895 88,730
Cost of investments sold (6,447) (796) (402) (36,911) (878) (84,735)
----------- ---------- ---------- -------------- -------------- --------------
Total realized gains (losses) on
sales of investments, net 463 (44) (8) 606 17 3,995
----------- ---------- ---------- -------------- -------------- --------------
Realized gains (losses)
on investments, net 463 (44) (8) 8,398 112 3,995
Net change in unrealized appreciation
(depreciation) on investments 19,701 (2,053) (1,565) 19,054 (3,562) 1,391
----------- ---------- ---------- -------------- -------------- --------------
Total realized gains (losses)
and unrealized appreciation
(depreciation) on investments, net 20,164 (2,097) (1,573) 27,452 (3,450) 5,386
----------- ---------- ---------- -------------- -------------- --------------
Net increase (decrease) in
net assets from operations $ 21,125 (1,780) (1,734) 31,018 (3,783) 5,270
=========== ========== ========== ============== ============== ==============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Operations (Continued)
For the years ended December 31, 1995, 1994 and 1993
Templeton Templeton Templeton
Developing Developing Developing Templeton Templeton Templeton
Markets Markets Markets Global Global Global
Equity Equity Equity Growth Growth Growth
Fund Fund Fund Fund Fund Fund
------------ ----------- ---------- ---------- ---------- ---------
1995 1994 1993 1995 1994 1993
------------ ----------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ 562 - - 1,137 - -
------------ ----------- ---------- ---------- ---------- ---------
Expenses:
Mortality and expense risk charges 3,898 3,197 - 1,255 65 -
Administrative charges 975 799 - 314 16 -
------------ ----------- ---------- ---------- ---------- ---------
Total expenses 4,873 3,996 - 1,569 81 -
------------ ----------- ---------- ---------- ---------- ---------
Investment income (loss), net (4,311) (3,996) - (432) (81) -
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain
distributions on mutual funds 132 - - - - -
------------ ----------- ---------- ---------- ---------- ---------
Realized gains (losses)
on sales of investments:
Proceeds from sales 37,410 2,518 - 28,814 3,901 -
Cost of investments sold (37,995) (2,585) - (28,227) (3,952) -
------------ ----------- ---------- ---------- ---------- ---------
Total realized gains (losses) on
sales of investments, net (585) (67) - 587 (51) -
------------ ----------- ---------- ---------- ---------- ---------
Realized gains (losses) on investments, net (453) (67) - 587 (51) -
Net change in unrealized appreciation
(depreciation) on investments 4,422 (2,951) - 23,468 (144) -
------------ ----------- ---------- ---------- ---------- ---------
Total realized gains (losses)
and unrealized appreciation
(depreciation) on investments, net 3,969 (3,018) - 24,055 (195) -
------------ ----------- ---------- ---------- ---------- ---------
Net increase (decrease) in
net assets from operations $ (342) (7,014) - 23,623 (276) -
============ =========== ========== ========== ========== =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Operations (Continued)
For the years ended December 31, 1995, 1994 and 1993
Templeton Templeton Templeton
Global Global Global
Asset Asset Asset Total Total Total
Allocation Allocation Allocation All All All
Fund Fund Fund Funds Funds Funds
------------ ---------- ---------- ----------- ----------- ----------
1995 1994 1993 1995 1994 1993
------------ ---------- ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ 4 - - 331,100 191,406 153,391
------------ ---------- ---------- ----------- ----------- ----------
Expenses:
Mortality and expense risk charges 25 - - 52,287 36,290 34,275
Administrative charges 6 - - 13,073 9,072 8,572
------------ ---------- ---------- ----------- ----------- ----------
Total expenses 31 - - 65,360 45,362 42,847
------------ ---------- ---------- ----------- ----------- ----------
Investment income (loss), net (27) - - 265,740 146,044 110,544
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain
distributions on mutual funds - - - 36,296 36,427 8,561
------------ ---------- ---------- ----------- ----------- ----------
Realized gains (losses)
on sales of investments:
Proceeds from sales 168 - - 2,024,083 1,351,596 1,068,583
Cost of investments sold (151) - - (1,901,519) (1,212,303) (912,835)
------------ ---------- ---------- ----------- ----------- ----------
Total realized gains (losses) on
sales of investments, net 17 - - 122,564 139,293 155,748
------------ ---------- ---------- ----------- ----------- ----------
Realized gains (losses)
on investments, net 17 - - 158,860 175,720 164,309
Net change in unrealized appreciation
(depreciation) on investments (15) - - 871,051 (677,502) 378,979
------------ ---------- ---------- ----------- ----------- ----------
Total realized gains (losses)
and unrealized appreciation
(depreciation) on investments, net 2 - - 1,029,911 (501,782) 543,288
------------ ---------- ---------- ----------- ----------- ----------
Net increase (decrease) in
net assets from operations $ (25) - - 1,295,651 (355,738) 653,832
============ ========== ========== =========== =========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Changes in Net Assets
For the years ended December 31, 1995, 1994 and 1993
Growth Growth Growth
Money Money Money and and and
Market Market Market Income Income Income
Fund Fund Fund Fund Fund Fund
----------- --------- -------- ---------- -------- ---------
1995 1994 1993 1995 1994 1993
----------- --------- -------- ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 27,041 11,105 6,604 2,877 (357) 851
Realized gains (losses) on investments, net - - - 42,515 28,987 39,654
Net change in unrealized appreciation
(depreciation) on investments - - - 184,273 (45,642) 19,332
----------- --------- -------- ---------- -------- ---------
Net increase (decrease) in net assets
from operations 27,041 11,105 6,604 229,665 (17,012) 59,837
----------- --------- -------- ---------- -------- ---------
Contract transactions (note 5):
Purchase payments 1,140,571 835,456 - 233,408 15,811 -
Transfers between funds (843,539) (442,767) 16,604 111,030 97,056 (88,021)
Surrenders and terminations (48,126) (101,035) (66,017) (54,886) (49,775) (67,969)
Other transactions (note 2) (124,660) (81,114) (6,376) (92,033) (49,647) 400
----------- --------- -------- ---------- -------- ---------
Net increase (decrease) in net assets
resulting from contract transactions 124,246 210,540 (55,789) 197,519 13,445 (155,590)
----------- --------- -------- ---------- -------- ---------
Increase (decrease) in net assets 151,287 221,645 (49,185) 427,184 (3,567) (95,753)
----------- --------- -------- ---------- -------- ---------
Net assets at beginning of year 530,565 308,920 358,105 625,982 629,549 725,302
----------- --------- -------- ---------- -------- ---------
Net assets at end of year $ 681,852 530,565 308,920 1,053,166 625,982 629,549
=========== ========= ======== ========== ======== =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Changes in Net Assets (Continued)
For the years ended December 31, 1995, 1994 and 1993
Precious Precious Precious High High High
Metals Metals Metals Income Income Income
Fund Fund Fund Fund Fund Fund
---------- --------- --------- ---------- ---------- ----------
1995 1994 1993 1995 1994 1993
---------- --------- --------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 489 (249) (220) 68,408 36,262 29,823
Realized gains (losses) on investments, net 17,696 1,595 11,886 7,610 11,417 4,429
Net change in unrealized appreciation
(depreciation) on investments (10,144) (2,094) 49,249 122,964 (81,774) 110,533
---------- --------- --------- ---------- ---------- ----------
Net increase (decrease) in net assets
from operations 8,041 (748) 60,915 198,982 (34,095) 144,785
---------- --------- --------- ---------- ---------- ----------
Contract transactions (note 5):
Purchase payments 24,963 988 - 44,935 4,791 -
Transfers between funds 23,956 89,216 (102,112) 37,055 (10,182) (1,243)
Surrenders and terminations (81,139) (8,168) - (14,331) (14,141) -
Other transactions (note 2) (12,332) (2,128) (140) (30,818) (7,272) (11,334)
---------- --------- --------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from contract transactions (44,552) 79,908 (102,252) 36,841 (26,804) (12,577)
---------- --------- --------- ---------- ---------- ----------
Increase (decrease) in net assets (36,511) 79,160 (41,337) 235,823 (60,899) 132,208
---------- --------- --------- ---------- ---------- ----------
Net assets at beginning of year 201,295 122,135 163,472 1,046,519 1,107,418 975,210
---------- --------- --------- ---------- ---------- ----------
Net assets at end of year $ 164,784 201,295 122,135 1,282,342 1,046,519 1,107,418
========== ========= ========= ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Changes in Net Assets (Continued)
For the years ended December 31, 1995, 1994 and 1993
Real Real Real U.S. U.S. U.S.
Estate Estate Estate Government Government Government
Securities Securities Securities Securities Securities Securities
Fund Fund Fund Fund Fund Fund
------------ ----------- ----------- ----------- ----------- -----------
1995 1994 1993 1995 1994 1993
------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 2,834 (227) 122 36,795 24,946 19,549
Realized gains (losses) on investments, net 3,559 1,805 2,855 7,473 33,884 10,280
Net change in unrealized appreciation
(depreciation) on investments 14,488 759 5,891 56,173 (91,983) 27,413
------------ ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
from operations 20,881 2,337 8,868 100,441 (33,153) 57,242
------------ ----------- ----------- ----------- ----------- -----------
Contract transactions (note 5):
Purchase payments 53,203 7,592 - 25,128 1,041 -
Transfers between funds 38,779 14,088 (4,205) 24,109 (111,346) (8,013)
Surrenders and terminations (8,139) - - (18,462) - -
Other transactions (note 2) (23,508) (3,026) 1,380 (18,318) (8,820) (9,256)
------------ ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contract transactions 60,335 18,654 (2,825) 12,457 (119,125) (17,269)
------------ ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets 81,216 20,991 6,043 112,898 (152,278) 39,973
------------ ----------- ----------- ----------- ----------- -----------
Net assets at beginning of year 78,309 57,318 51,275 534,051 686,329 646,356
------------ ----------- ----------- ----------- ----------- -----------
Net assets at end of year $ 159,525 78,309 57,318 646,949 534,051 686,329
============ =========== =========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Changes in Net Assets (Continued)
For the years ended December 31, 1995, 1994 and 1993
Zero Zero Zero
Utility Utility Utility Coupon Coupon Coupon
Equity Equity Equity Fund - Fund - Fund -
Fund Fund Fund 1995 1995 1995
----------- ---------- ---------- --------- -------- --------
1995 1994 1993 1995 1994 1993
----------- ---------- ---------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 59,683 36,532 15,643 18,122 13,370 13,285
Realized gains (losses) on investments, net 23,410 53,278 64,775 37,705 1,409 4,401
Net change in unrealized appreciation
(depreciation) on investments 259,686 (253,440) 47,455 (37,457) (14,916) (1,412)
----------- ---------- ---------- --------- -------- --------
Net increase (decrease) in net assets
from operations 342,779 (163,630) 127,873 18,370 (137) 16,274
----------- ---------- ---------- --------- -------- --------
Contract transactions (note 5):
Purchase payments 116,016 11,599 - - - -
Transfers between funds 124,589 (62,456) (19,863) (270,886) - -
Surrenders and terminations (35,449) (23,338) (91,320) - - -
Other transactions (note 2) (76,186) (39,723) (18,834) (2,815) (3,292) (3,050)
----------- ---------- ---------- --------- -------- --------
Net increase (decrease) in net assets
resulting from contract transactions 128,970 (113,918) (130,017) (273,701) (3,292) (3,050)
----------- ---------- ---------- --------- -------- --------
Increase (decrease) in net assets 471,749 (277,548) (2,144) (255,331) (3,429) 13,224
----------- ---------- ---------- --------- -------- --------
Net assets at beginning of year 1,074,173 1,351,721 1,353,865 255,331 258,760 245,536
----------- ---------- ---------- --------- -------- --------
Net assets at end of year $1,545,922 1,074,173 1,351,721 - 255,331 258,760
=========== ========== ========== ========= ======== ========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Changes in Net Assets (Continued)
For the years ended December 31, 1995, 1994 and 1993
Zero Zero Zero Zero Zero Zero
Coupon Coupon Coupon Coupon Coupon Coupon
Fund - Fund - Fund - Fund - Fund - Fund -
2000 2000 2000 2005 2005 2005
--------- -------- -------- -------- --------- --------
1995 1994 1993 1995 1994 1993
--------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 11,269 12,081 10,108 10,144 9,241 9,557
Realized gains (losses) on investments, net 1,164 5,815 2,800 1,495 26,636 17,160
Net change in unrealized appreciation
(depreciation) on investments 44,013 (41,764) 30,329 68,320 (72,608) 44,629
--------- -------- -------- -------- --------- --------
Net increase (decrease) in net assets
from operations 56,446 (23,868) 43,237 79,959 (36,731) 71,346
--------- -------- -------- -------- --------- --------
Contract transactions (note 5):
Purchase payments - - - - - -
Transfers between funds 10,631 - - - (41,224) (31,627)
Surrenders and terminations - (7,535) - - (28,826) -
Other transactions (note 2) (3,895) (5,488) (3,880) (4,312) (3,853) (2,637)
--------- -------- -------- -------- --------- --------
Net increase (decrease) in net assets
resulting from contract transactions 6,736 (13,023) (3,880) (4,312) (73,903) (34,264)
--------- -------- -------- -------- --------- --------
Increase (decrease) in net assets 63,182 (36,891) 39,357 75,647 (110,634) 37,082
--------- -------- -------- -------- --------- --------
Net assets at beginning of year 286,240 323,131 283,774 261,513 372,147 335,065
--------- -------- -------- -------- --------- --------
Net assets at end of year $349,422 286,240 323,131 337,160 261,513 372,147
========= ======== ======== ======== ========= ========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Changes in Net Assets (Continued)
For the years ended December 31, 1995, 1994 and 1993
Zero Zero Zero
Coupon Coupon Coupon Global Global Global
Fund - Fund - Fund - Income Income Income
2010 2010 2010 Fund Fund Fund
--------- --------- -------- -------- ------- -------
1995 1994 1993 1995 1994 1993
--------- --------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 1,964 6,159 4,467 2,283 333 609
Realized gains (losses) on investments, net 258 1,490 1,003 392 336 279
Net change in unrealized appreciation
(depreciation) on investments 32,162 (29,320) 10,850 6,634 (2,030) 2,156
--------- --------- -------- -------- ------- -------
Net increase (decrease) in net assets
from operations 34,384 (21,671) 16,320 9,309 (1,361) 3,044
--------- --------- -------- -------- ------- -------
Contract transactions (note 5):
Purchase payments - - - 42,908 1,813 -
Transfers between funds - (74,884) 90,077 18,457 21,778 -
Surrenders and terminations - - - (6,040) - -
Other transactions (note 2) (1,826) (3,577) (1,956) (18,424) (1,388) (348)
--------- --------- -------- -------- ------- -------
Net increase (decrease) in net assets
resulting from contract transactions (1,826) (78,461) 88,121 36,901 22,203 (348)
--------- --------- -------- -------- ------- -------
Increase (decrease) in net assets 32,558 (100,132) 104,441 46,210 20,842 2,696
--------- --------- -------- -------- ------- -------
Net assets at beginning of year 83,178 183,310 78,869 42,818 21,976 19,280
--------- --------- -------- -------- ------- -------
Net assets at end of year $115,736 83,178 183,310 89,028 42,818 21,976
========= ========= ======== ======== ======= =======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Changes in Net Assets (Continued)
For the years ended December 31, 1995, 1994 and 1993
Investment Investment Investment
Grade Grade Grade Income Income Income
Intermediate Intermediate Intermediate Securities Securities Securities
Bond Fund Bond Fund Bond Fund Fund Fund Fund
-------------- ------------- ------------- ----------- ----------- -----------
1995 1994 1993 1995 1994 1993
-------------- ------------- ------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 3,288 42 131 16,941 1,263 537
Realized gains (losses)
on investments, net 1,106 48 40 2,313 (62) 681
Net change in unrealized
appreciation (depreciation)
on investments 2,630 150 419 47,314 (9,527) 4,145
-------------- ------------- ------------- ----------- ----------- -----------
Net increase (decrease) in
net assets from operations 7,024 240 590 66,568 (8,326) 5,363
-------------- ------------- ------------- ----------- ----------- -----------
Contract transactions (note 5):
Purchase payments 14,163 1,391 - 223,737 22,483 -
Transfers between funds 8,123 75,010 - 186,849 153,200 7,985
Surrenders and terminations (40,771) - - (14,487) - -
Other transactions (note 2) (7,440) (908) (84) (109,005) (33,608) (341)
-------------- ------------- ------------- ----------- ----------- -----------
Net increase (decrease) in
net assets resulting from
contract transactions (25,925) 75,493 (84) 287,094 142,075 7,644
-------------- ------------- ------------- ----------- ----------- -----------
Increase (decrease) in net assets (18,901) 75,733 506 353,662 133,749 13,007
-------------- ------------- ------------- ----------- ----------- -----------
Net assets at beginning of year 83,891 8,158 7,652 170,404 36,655 23,648
-------------- ------------- ------------- ----------- ----------- -----------
Net assets at end of year $ 64,990 83,891 8,158 524,066 170,404 36,655
============== ============= ============= =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Changes in Net Assets (Continued)
For the years ended December 31, 1995, 1994 and 1993
Adjustable Adjustable Adjustable Templeton Templeton Templeton
U.S. U.S. U.S. Pacific Pacific Pacific
Government Government Government Growth Growth Growth
Fund Fund Fund Fund Fund Fund
------------ ----------- ----------- ---------- ---------- ----------
1995 1994 1993 1995 1994 1993
------------ ----------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 1,199 150 149 2,646 (514) (394)
Realized gains (losses) on investments, net 35 (81) 2 3,117 9,213 77
Net change in unrealized appreciation
(depreciation) on investments 240 (98) (25) 13,125 (24,505) 28,189
------------ ----------- ----------- ---------- ---------- ----------
Net increase (decrease) in net assets
from operations 1,474 (29) 126 18,888 (15,806) 27,872
------------ ----------- ----------- ---------- ---------- ----------
Contract transactions (note 5):
Purchase payments 12,633 5,636 - 141,914 13,634 -
Transfers between funds 11,222 (2,444) - 74,887 91,481 109,893
Surrenders and terminations - - - (10,270) - -
Other transactions (note 2) (7,891) (358) (81) (92,189) (67,497) (543)
------------ ----------- ----------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from contract transactions 15,964 2,834 (81) 114,342 37,618 109,350
------------ ----------- ----------- ---------- ---------- ----------
Increase (decrease) in net assets 17,438 2,805 45 133,230 21,812 137,222
------------ ----------- ----------- ---------- ---------- ----------
Net assets at beginning of year 7,427 4,622 4,577 164,784 142,972 5,750
------------ ----------- ----------- ---------- ---------- ----------
Net assets at end of year $ 24,865 7,427 4,622 298,014 164,784 142,972
============ =========== =========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Changes in Net Assets (Continued)
For the years ended December 31, 1995, 1994 and 1993
Templeton Templeton Templeton
Rising Rising Rising International International International
Dividends Dividends Dividends Equity Equity Equity
Fund Fund Fund Fund Fund Fund
----------- ---------- ---------- -------------- -------------- --------------
1995 1994 1993 1995 1994 1993
----------- ---------- ---------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 961 317 (161) 3,566 (333) (116)
Realized gains (losses)
on investments, net 463 (44) (8) 8,398 112 3,995
Net change in unrealized
appreciation (depreciation)
on investments 19,701 (2,053) (1,565) 19,054 (3,562) 1,391
----------- ---------- ---------- -------------- -------------- --------------
Net increase (decrease) in
net assets from operations 21,125 (1,780) (1,734) 31,018 (3,783) 5,270
----------- ---------- ---------- -------------- -------------- --------------
Contract transactions (note 5):
Purchase payments 52,764 4,169 - 297,409 32,269 -
Transfers between funds 38,476 5,960 18,787 206,753 104,241 11,738
Surrenders and terminations (264) - - (9,230) - -
Other transactions (note 2) (19,499) (1,199) (393) (111,967) (8,365) (77)
----------- ---------- ---------- -------------- -------------- --------------
Net increase (decrease) in
net assets resulting from
contract transactions 71,477 8,930 18,394 382,965 128,145 11,661
----------- ---------- ---------- -------------- -------------- --------------
Increase (decrease) in net assets 92,602 7,150 16,660 413,983 124,362 16,931
----------- ---------- ---------- -------------- -------------- --------------
Net assets at beginning of year 44,527 37,377 20,717 141,293 16,931 -
----------- ---------- ---------- -------------- -------------- --------------
Net assets at end of year $ 137,129 44,527 37,377 555,276 141,293 16,931
=========== ========== ========== ============== ============== ==============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Changes in Net Assets (Continued)
For the years ended December 31, 1995, 1994 and 1993
Templeton Templeton Templeton
Developing Developing Developing Templeton Templeton Templeton
Markets Markets Markets Global Global Global
Equity Equity Equity Growth Growth Growth
Fund Fund Fund Fund Fund Fund
------------ ----------- ---------- ---------- ---------- ---------
1995 1994 1993 1995 1994 1993
------------ ----------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net ($4,311) (3,996) - (432) (81) -
Realized gains (losses) on investments, net (453) (67) - 587 (51) -
Net change in unrealized appreciation
(depreciation) on investments 4,422 (2,951) - 23,468 (144) -
------------ ----------- ---------- ---------- ---------- ---------
Net increase (decrease) in net assets
from operations (342) (7,014) - 23,623 (276) -
------------ ----------- ---------- ---------- ---------- ---------
Contract transactions (note 5):
Purchase payments 169,165 19,997 - 237,156 27,117 -
Transfers between funds 63,297 44,206 - 114,188 45,458 -
Surrenders and terminations (18,763) - - (6,710) - -
Other transactions (note 2) (61,489) (1,238) - (86,658) (5,539) -
------------ ----------- ---------- ---------- ---------- ---------
Net increase (decrease) in net assets
resulting from contract transactions 152,210 62,965 - 257,976 67,036 -
------------ ----------- ---------- ---------- ---------- ---------
Increase (decrease) in net assets 151,868 55,951 - 281,599 66,760 -
------------ ----------- ---------- ---------- ---------- ---------
Net assets at beginning of year 55,951 - - 66,760 - -
------------ ----------- ---------- ---------- ---------- ---------
Net assets at end of year $ 207,819 55,951 - 348,359 66,760 -
============ =========== ========== ========== ========== =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Statements of Changes in Net Assets (Continued)
For the years ended December 31, 1995, 1994 and 1993
Templeton Templeton Templeton
Global Global Global
Asset Asset Asset Total Total Total
Allocation Allocation Allocation All All All
Fund Fund Fund Funds Funds Funds
------------ ---------- ---------- ---------- ---------- ----------
1995 1994 1993 1995 1994 1993
------------ ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net ($27) - - 265,740 146,044 110,544
Realized gains (losses) on investments, net 17 - - 158,860 175,720 164,309
Net change in unrealized appreciation
(depreciation) on investments (15) - - 871,051 (677,502) 378,979
------------ ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
from operations (25) - - 1,295,651 (355,738) 653,832
------------ ---------- ---------- ---------- ---------- ----------
Contract transactions (note 5):
Purchase payments - - - 2,830,073 1,005,787 -
Transfers between funds 311 - - (21,713) (3,609) -
Surrenders and terminations - - - (367,067) (232,818) (225,306)
Other transactions (note 2) (66) - - (905,331) (328,040) (57,550)
------------ ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from contract transactions 245 - - 1,535,962 441,320 (282,856)
------------ ---------- ---------- ---------- ---------- ----------
Increase (decrease) in net assets 220 - - 2,831,613 85,582 370,976
------------ ---------- ---------- ---------- ---------- ----------
Net assets at beginning of year - - - 5,755,011 5,669,429 5,298,453
------------ ---------- ---------- ---------- ---------- ----------
Net assets at end of year $ 220 - - 8,586,624 5,755,011 5,669,429
============ ========== ========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT A
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Notes to Financial Statements
December 31, 1995
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.
In April 1995, the Equity Growth Fund name was changed to Growth and Income
Fund.
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.
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 years ended December 31,
1995, 1994 and 1993 were $581,193, $123,231 and $46,026, 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 years ended December
31, 1995, 1994 and 1993 were $28,613, $32,516 and $34,016, 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
years ended December 31, 1995 and 1994 were $292,695 and $64,030,
respectively. There were no variable universal life policies issued during
the year ended December 31, 1993.
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 years ended December 31, 1995, 1994
and 1993, respectively. Transfers to the Fixed Account during the years ended
December 31, 1995 and 1994 were $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 year ended December 31, 1995:
<TABLE>
<CAPTION>
<S> <C>
Money Market Fund $1,122,415
Growth and Income Fund 326,793
Precious Metals Fund 123,585
High Income Fund 162,053
Real Estate Securities Fund 86,588
U.S. Government Securities Fund 88,014
Utility Equity Fund 312,133
Zero Coupon Fund - 1995 17,464
Zero Coupon Fund - 2000 24,625
Zero Coupon Fund - 2005 12,928
Zero Coupon Fund - 2010 3,109
Global Income Fund 55,385
Investment Grade Intermediate Bond Fund 22,252
Income Securities Fund 363,976
Adjustable U.S. Government Fund 28,937
Templeton Pacific Growth Fund 180,053
Rising Dividends Fund 80,078
Templeton International Equity Fund 434,389
Templeton Developing Markets Equity Fund 180,752
Templeton Global Growth Fund 285,990
Templeton Global Asset Allocation Fund 387
</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>
5. CONTRACT TRANSACTIONS - UNIT ACTIVITY
Transactions in units for each fund for the years ended December 31, 1995,
1994 and 1993, were as follows:
<TABLE>
<CAPTION>
Growth Real U.S.
Money and Precious High Estate Government
Market Income Metals Income Securities Securities
Fund Fund Fund Fund Fund Fund
--------- ---------- --------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding at December 31, 1992 26,464 36,756 16,401 65,825 3,450 39,596
Contract transactions:
Transfers between funds 1,266 (4,296) (8,477) (59) (272) (451)
Surrenders and terminations (4,833) (3,404) - - - -
Other transactions (467) 84 9 (701) 87 (533)
--------- ---------- --------- ---------- ----------- -----------
Net increase (decrease) in units
resulting from contract transactions (4,034) (7,616) (8,468) (760) (185) (984)
--------- ---------- --------- ---------- ----------- -----------
Units outstanding at December 31, 1993 22,430 29,140 7,933 65,065 3,265 38,612
========= ========== ========= ========== =========== ===========
Accumulation unit value
per unit at December 31, 1993 $ 13.773 21.604 15.396 17.020 17.556 17.775
========= ========== ========= ========== =========== ===========
Contract transactions:
Purchase payments 59,285 751 67 265 419 62
Transfers between funds (31,325) 4,606 6,162 (637) 861 (6,440)
Surrenders and terminations (7,250) (2,364) (578) (869) - -
Other transactions (5,759) (2,338) (143) (444) (177) (520)
--------- ---------- --------- ---------- ----------- -----------
Net increase (decrease) in units
resulting from contract transactions 14,951 655 5,508 (1,685) 1,103 (6,898)
--------- ---------- --------- ---------- ----------- -----------
Units outstanding at December 31, 1994 37,381 29,795 13,441 63,380 4,368 31,714
========= ========== ========= ========== =========== ===========
Accumulation unit value
per unit at December 31, 1994 $ 14.194 21.010 14.977 16.512 17.928 16.840
========= ========== ========= ========== =========== ===========
Contract transactions:
Purchase payments 77,441 9,561 1,662 2,463 2,884 1,355
Transfers between funds (57,166) 4,664 1,698 1,925 2,056 1,281
Surrenders and terminations (3,275) (2,237) (5,150) (772) (427) (965)
Other transactions (8,613) (3,762) (820) (1,663) (1,253) (983)
--------- ---------- --------- ---------- ----------- -----------
Net increase (decrease) in units
resulting from contract transactions 8,387 8,226 (2,610) 1,953 3,260 688
--------- ---------- --------- ---------- ----------- -----------
Units outstanding at December 31, 1995 45,768 38,021 10,831 65,333 7,628 32,402
========= ========== ========= ========== =========== ===========
Accumulation unit value
per unit at December 31, 1995 $ 14.898 27.700 15.214 19.628 20.913 19.966
========= ========== ========= ========== =========== ===========
Accumulation net assets at December 31, 1995 $681,852 1,053,166 164,784 1,282,342 159,525 646,949
========= ========== ========= ========== =========== ===========
</TABLE>
<PAGE>
5. CONTRACT TRANSACTIONS - UNIT ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
Zero Zero Zero Zero
Utility Coupon Coupon Coupon Coupon Global
Equity Fund - Fund - Fund - Fund - Income
Fund 1995 2000 2005 2010 Fund
----------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding at December 31, 1992 72,790 14,686 15,439 17,524 3,968 1,562
Contract transactions:
Transfers between funds (998) - - (1,326) 3,524 -
Surrenders and terminations (4,617) - - - - -
Other transactions (934) (175) (190) (156) (84) (25)
----------- -------- -------- -------- -------- -------
Net increase (decrease) in units
resulting from contract transactions (6,549) (175) (190) (1,482) 3,440 (25)
----------- -------- -------- -------- -------- -------
Units outstanding at December 31, 1993 66,241 14,511 15,249 16,042 7,408 1,537
=========== ======== ======== ======== ======== =======
Accumulation unit value
per unit at December 31, 1993 $ 20.406 17.832 21.191 23.198 24.745 14.297
=========== ======== ======== ======== ======== =======
Contract transactions:
Purchase payments 654 - - - - 133
Transfers between funds (3,468) - - (1,953) (3,442) 1,607
Surrenders and terminations (1,253) - (379) (1,348) - -
Other transactions (2,205) (186) (276) (182) (162) (102)
----------- -------- -------- -------- -------- -------
Net increase (decrease) in units
resulting from contract transactions (6,272) (186) (655) (3,483) (3,604) 1,638
----------- -------- -------- -------- -------- -------
Units outstanding at December 31, 1994 59,969 14,325 14,594 12,559 3,804 3,175
=========== ======== ======== ======== ======== =======
Accumulation unit value
per unit at December 31, 1994 $ 17.912 17.823 19.614 20.821 21.866 13.483
=========== ======== ======== ======== ======== =======
Contract transactions:
Purchase payments 5,744 - - - - 2,992
Transfers between funds 6,185 (14,174) 458 - - 1,333
Surrenders and terminations (1,893) - - - - (416)
Other transactions (3,807) (151) (178) (177) (69) (1,283)
----------- -------- -------- -------- -------- -------
Net increase (decrease) in units
resulting from contract transactions 6,229 (14,325) 280 (177) (69) 2,626
----------- -------- -------- -------- -------- -------
Units outstanding at December 31, 1995 66,198 - 14,874 12,382 3,735 5,801
=========== ======== ======== ======== ======== =======
Accumulation unit value
per unit at December 31, 1995 $ 23.353 - 23.491 27.229 30.991 15.347
=========== ======== ======== ======== ======== =======
Accumulation net assets at December 31, 1995 $1,545,922 - 349,422 337,160 115,736 89,028
=========== ======== ======== ======== ======== =======
</TABLE>
<PAGE>
5. CONTRACT TRANSACTIONS - UNIT ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
Investment
Grade Adjustable Templeton
Intermediate Income U.S. Pacific Rising
Bond Securities Government Growth Dividends
Fund Fund Fund Fund Fund
-------------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Units outstanding at December 31, 1992 588 1,598 410 586 1,899
Contract transactions:
Transfers between funds - 527 - 9,382 1,714
Surrenders and terminations - - - - -
Other transactions (6) (21) (7) (44) (37)
-------------- ----------- ----------- ---------- ----------
Net increase (decrease) in units
resulting from contract transactions (6) 506 (7) 9,338 1,677
-------------- ----------- ----------- ---------- ----------
Units outstanding at December 31, 1993 582 2,104 403 9,924 3,576
============== =========== =========== ========== ==========
Accumulation unit value
per unit at December 31, 1993 $ 14.017 17.423 11.481 14.407 10.453
============== =========== =========== ========== ==========
Contract transactions:
Purchase payments 100 1,334 495 998 418
Transfers between funds 5,385 9,100 (213) 6,850 601
Surrenders and terminations - - - - -
Other transactions (65) (2,024) (31) (5,137) (121)
-------------- ----------- ----------- ---------- ----------
Net increase (decrease) in units
resulting from contract transactions 5,420 8,410 251 2,711 898
-------------- ----------- ----------- ---------- ----------
Units outstanding at December 31, 1994 6,002 10,514 654 12,635 4,474
============== =========== =========== ========== ==========
Accumulation unit value
per unit at December 31, 1994 $ 13.978 16.208 11.374 13.042 9.952
============== =========== =========== ========== ==========
Contract transactions:
Purchase payments 963 12,397 1,060 10,718 4,625
Transfers between funds 562 10,593 966 5,757 3,323
Surrenders and terminations (2,761) (783) - (779) (23)
Other transactions (507) (6,107) (667) (7,009) (1,699)
-------------- ----------- ----------- ---------- ----------
Net increase (decrease) in units
resulting from contract transactions (1,743) 16,100 1,359 8,687 6,226
-------------- ----------- ----------- ---------- ----------
Units outstanding at December 31, 1995 4,259 26,614 2,013 21,322 10,700
============== =========== =========== ========== ==========
Accumulation unit value
per unit at December 31, 1995 $ 15.260 19.691 12.352 13.977 12.816
============== =========== =========== ========== ==========
Accumulation net assets at December 31, 1995 $ 64,990 524,066 24,865 298,014 137,129
============== =========== =========== ========== ==========
</TABLE>
<PAGE>
5. CONTRACT TRANSACTIONS - UNIT ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
Templeton Templeton
Templeton Developing Templeton Global
International Markets Global Asset Total
Equity Equity Growth Allocation All
Fund Fund Fund Fund Funds
--------------- ----------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Units outstanding at December 31, 1992 - - - - 319,542
Contract transactions:
Transfers between funds 1,375 - - - 1,909
Surrenders and terminations - - - - (12,854)
Other transactions (7) - - - (3,207)
--------------- ----------- ---------- ----------- ----------
Net increase (decrease) in units
resulting from contract transactions 1,368 - - - (14,152)
--------------- ----------- ---------- ----------- ----------
Units outstanding at December 31, 1993 1,368 - - - 305,390
=============== =========== ========== =========== ==========
Accumulation unit value
per unit at December 31, 1993 $ 12.375 - - -
=============== =========== ========== ===========
Contract transactions:
Purchase payments 2,526 2,054 2,721 - 72,282
Transfers between funds 8,168 4,590 4,585 - 5,037
Surrenders and terminations - - - - (14,041)
Other transactions (659) (545) (558) - (21,634)
--------------- ----------- ---------- ----------- ----------
Net increase (decrease) in units
resulting from contract transactions 10,035 6,099 6,748 - 41,644
--------------- ----------- ---------- ----------- ----------
Units outstanding at December 31, 1994 11,403 6,099 6,748 - 347,034
=============== =========== ========== =========== ==========
Accumulation unit value
per unit at December 31, 1994 $ 12.390 9.173 9.894 -
=============== =========== ========== ===========
Contract transactions:
Purchase payments 22,647 18,183 22,517 - 197,212
Transfers between funds 15,984 6,624 11,063 27 3,159
Surrenders and terminations (691) (2,067) (627) - (22,866)
Other transactions (8,513) (6,629) (8,230) (6) (62,126)
--------------- ----------- ---------- ----------- ----------
Net increase (decrease) in units
resulting from contract transactions 29,427 16,111 24,723 21 115,379
--------------- ----------- ---------- ----------- ----------
Units outstanding at December 31, 1995 40,830 22,210 31,471 21 462,413
=============== =========== ========== =========== ==========
Accumulation unit value
per unit at December 31, 1995 $ 13.600 9.357 11.069 10.637
=============== =========== ========== ===========
Accumulation net assets at December 31, 1995 $ 555,276 207,819 348,359 220 8,586,624
=============== =========== ========== =========== ==========
</TABLE>
<PAGE>
