<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements
Statements of Assets and Liabilities
June 30, 1997 (unaudited)
Mutual
Capital Growth and High Income Money Discovery
Growth Income Income Securities Market Securities
Fund Fund Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investments at net asset value:
Franklin Valuemark Funds:
Capital Growth Fund, 387 shares, cost $4,542 $4,828 - - - - -
Growth and Income Fund, 102,722 shares, cost $1,540,471 - 1,909,604 - - - -
High Income Fund, 137,538 shares, cost $1,723,861 - - 1,869,139 - - -
Income Securities Fund, 59,796 shares, cost $950,905 - - - 1,000,392 - -
Money Market Fund, 902,138 shares, cost $902,138 - - - - 902,138 -
Mutual Discovery Securities Fund, 12,562 shares,
cost $134,516 - - - - - 142,205
- ---------------------------------------------------------------------------------------------------------------------------
Total assets 4,828 1,909,604 1,869,139 1,000,392 902,138 142,205
- ---------------------------------------------------------------------------------------------------------------------------
Liabilities:
Accrued mortality and expense risk charges 16 12,086 6,842 8,815 5,670 222
Accrued administrative charges 4 3,021 1,711 2,203 1,417 55
- ---------------------------------------------------------------------------------------------------------------------------
Total liabilities 20 15,107 8,553 11,018 7,087 277
- ---------------------------------------------------------------------------------------------------------------------------
Net assets $4,808 1,894,497 1,860,586 989,374 895,051 141,928
===========================================================================================================================
Policy owners' equity (note 4) $4,808 1,894,497 1,860,586 989,374 895,051 141,928
===========================================================================================================================
<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 (continued)
Statements of Assets and Liabilities (cont.)
June 30, 1997 (unaudited)
Mutual Natural Templeton
Shares Resources Real Estate Rising Small Developing
Securities Securities Securities Dividends Cap Markets
Fund Fund Fund Fund Fund Equity Fund
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investments at net asset value:
Franklin Valuemark Funds:
Mutual Shares Securities Fund, 18,873 shares,
cost $199,154 $210,246 - - - - -
Natural Resources Securities Fund, 9,541 shares,
cost $131,183 - 122,890 - - - -
Real Estate Securities Fund, 20,867 shares,
cost $391,037 - - 476,195 - - -
Rising Dividends Fund, 25,201 shares, cost $340,016 - - - 433,717 - -
Small Cap Fund, 13,621 shares, cost $176,404 - - - - 188,655 -
Templeton Developing Markets Equity Fund,
73,686 shares, cost $821,800 - - - - - 992,554
- ---------------------------------------------------------------------------------------------------------------------------
Total assets 210,246 122,890 476,195 433,717 188,655 992,554
- ---------------------------------------------------------------------------------------------------------------------------
Liabilities:
Accrued mortality and expense risk charges 437 965 3,409 3,109 447 6,686
Accrued administrative charges 109 242 852 778 112 1,671
- ---------------------------------------------------------------------------------------------------------------------------
Total liabilities 546 1,207 4,261 3,887 559 8,357
- ---------------------------------------------------------------------------------------------------------------------------
Net assets $209,700 121,683 471,934 429,830 188,096 984,197
===========================================================================================================================
Policy owners' equity (note 4) $209,700 121,683 471,934 429,830 188,096 984,197
===========================================================================================================================
<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 (continued)
Statements of Assets and Liabilities (cont.)
June 30, 1997 (unaudited)
Templeton
Templeton Templeton Templeton Templeton International Templeton
Global Asset Global Global Income International Smaller Pacific
Allocation Growth Securities Equity Companies Growth
Fund Fund Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investments at net asset value:
Franklin Valuemark Funds:
Templeton Global Asset Allocation Fund,
32,144 shares, cost $365,175 $431,694 - - - - -
Templeton Global Growth Fund,
71,917 shares, cost $894,554 - 1,106,802 - - - -
Templeton Global Income Securities Fund,
11,348 shares, cost $145,177 - - 144,115 - - -
Templeton International Equity Fund,
81,594 shares, cost $1,148,607 - - - 1,340,582 - -
Templeton International Smaller Companies Fund,
266 shares, cost $3,103 - - - - 3,159 -
Templeton Pacific Growth Fund,
31,496 shares, cost $437,238 - - - - - 469,918
- ---------------------------------------------------------------------------------------------------------------------------
Total assets 431,694 1,106,802 144,115 1,340,582 3,159 469,918
- ---------------------------------------------------------------------------------------------------------------------------
Liabilities:
Accrued mortality and expense risk charges 1,727 8,846 1,767 11,226 5 5,361
Accrued administrative charges 432 2,211 441 2,807 1 1,340
- ---------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,159 11,057 2,208 14,033 6 6,701
- ---------------------------------------------------------------------------------------------------------------------------
Net assets $429,535 1,095,745 141,907 1,326,549 3,153 463,217
===========================================================================================================================
Policy owners' equity (note 4) $429,535 1,095,745 141,907 1,326,549 3,153 463,217
===========================================================================================================================
<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 (continued)
Statements of Assets and Liabilities (cont.)
June 30, 1997 (unaudited)
U.S. Government Utility Zero Zero Zero Total
Securities Equity Coupon Coupon Coupon All
Fund Fund Fund - 2000 Fund - 2005 Fund - 2010 Funds
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investments at net asset value:
Franklin Valuemark Funds:
U.S. Government Securities Fund,
71,552 shares, cost $845,773 $945,205 - - - -
Utility Equity Fund, 78,456 shares,
cost $1,080,629 - 1,351,008 - - -
Zero Coupon Fund - 2000,
24,669 shares, cost $277,316 - - 356,965 - -
Zero Coupon Fund - 2005,
21,109 shares, cost $244,994 - - - 330,142 -
Zero Coupon Fund - 2010,
23,314 shares, cost $344,197 - - - - 363,228
- ---------------------------------------------------------------------------------------------------------------------------
Total assets 945,205 1,351,008 356,965 330,142 363,228 15,095,381
- ---------------------------------------------------------------------------------------------------------------------------
Liabilities:
Accrued mortality and expense risk charges 4,876 7,475 1,531 1,605 1,509 94,632
Accrued administrative charges 1,219 1,868 383 401 378 23,656
- ---------------------------------------------------------------------------------------------------------------------------
Total liabilities 6,095 9,343 1,914 2,006 1,887 118,288
- ---------------------------------------------------------------------------------------------------------------------------
Net assets $939,110 1,341,665 355,051 328,136 361,341 14,977,093
==========================================================================================================================
Policy owners' equity (note 4) $939,110 1,341,665 355,051 328,136 361,341 14,977,093
==========================================================================================================================
<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 (continued)
Statements of Operations
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Adjustable
U.S. Government Fund Capital Growth Fund Growth and Income Fund
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ - 18,030 1,373 7 - - 61,679 28,758 10,179
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges - 740 139 15 2 - 6,282 9,969 5,842
Administrative charges - 185 35 4 - - 1,571 2,492 1,460
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses - 925 174 19 2 - 7,853 12,461 7,302
- ---------------------------------------------------------------------------------------------------------------------------
Investment income (loss), net - 17,105 1,199 (12) (2) - 53,826 16,297 2,877
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions
on mutual funds - - - - - - 59,819 101,857 22,157
Realized gains (losses)
on sales of investments, net - (10,027) 35 - - - 43,706 25,750 20,358
- ---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net - (10,027) 35 - - - 103,525 127,607 42,515
Net change in unrealized appreciation
(depreciation)on investments - (200) 240 426 (140) - 54,834 37,916 184,273
- ---------------------------------------------------------------------------------------------------------------------------
Total realized gains (losses) and unrealized
appreciation (depreciation)
on investments, net - (10,227) 275 426 (140) - 158,359 165,523 226,788
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations $ - 6,878 1,474 414 (142) - 212,185 181,820 229,665
===========================================================================================================================
<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 (continued)
Statements of Operations (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Investment Grade
High Income Fund Income Securities Fund Intermediate Bond Fund
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $153,512 167,136 78,044 71,443 33,370 19,772 - 3,706 3,949
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges 5,669 12,310 7,709 3,209 4,656 2,265 - 366 529
Administrative charges 1,417 3,077 1,927 802 1,164 566 - 91 132
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses 7,086 15,387 9,636 4,011 5,820 2,831 - 457 661
- ---------------------------------------------------------------------------------------------------------------------------
Investment income (loss), net 146,426 151,749 68,408 67,432 27,550 16,941 - 3,249 3,288
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions
on mutual funds 5,036 8,872 - 15,347 5,550 1,592 - - -
Realized gains (losses) on sales
of investments, net 18,973 33,892 7,610 3,610 2,373 721 - 1,981 1,106
- ---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on
investments, net 24,009 42,764 7,610 18,957 7,923 2,313 - 1,981 1,106
Net change in unrealized appreciation
(depreciation) on investments (90,442) 26,432 122,964 (29,964) 37,183 47,314 - (3,575) 2,630
- ---------------------------------------------------------------------------------------------------------------------------
Total realized gains (losses) and
unrealized appreciation (depreciation)
on investments, net (66,433) 69,196 130,574 (11,007) 45,106 49,627 - (1,594) 3,736
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations $ 79,993 220,945 198,982 56,425 72,656 66,568 - 1,655 7,024
===========================================================================================================================
<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 (continued)
Statements of Operations (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Mutual Discovery Mutual Shares
Money Market Fund Securities Fund Securities Fund
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $16,679 32,922 33,164 40 - - 72 - -
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges 2,074 4,291 4,898 200 22 - 406 31 -
Administrative charges 518 1,073 1,225 50 5 - 102 8 -
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses 2,592 5,364 6,123 250 27 - 508 39 -
- ---------------------------------------------------------------------------------------------------------------------------
Investment income (loss), net 14,087 27,558 27,041 (210) (27) - (436) (39) -
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions
on mutual funds - - - - - - - - -
Realized gains (losses) on sales
of investments, net - - - 20 - - 486 2 -
- ---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net - - - 20 - - 486 2 -
Net change in unrealized appreciation (depreciation)
on investments - - - 7,194 495 - 9,458 1,634 -
- ---------------------------------------------------------------------------------------------------------------------------
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net - - - 7,214 495 - 9,944 1,636 -
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations $14,087 27,558 27,041 7,004 468 - 9,508 1,597 -
===========================================================================================================================
<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 (continued)
Statements of Operations (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Natural Resources Securities Real Estate Securities Rising Dividends
Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income:
Dividends reinvested in
fund shares $ 1,844 2,102 3,600 12,965 7,943 3,875 5,990 3,981 1,695
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges 205 1,012 2,489 1,377 1,883 833 1,397 1,632 587
Administrative charges 51 253 622 344 471 208 349 408 147
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses 256 1,265 3,111 1,721 2,354 1,041 1,746 2,040 734
- ---------------------------------------------------------------------------------------------------------------------------
Investment income (loss), net 1,588 837 489 11,244 5,589 2,834 4,244 1,941 961
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions
on mutual funds - 1,927 2,665 6,191 - - 10,229 - -
Realized gains (losses) on sales of
investments, net (1,564) 14,498 15,031 14,599 1,980 3,559 6,232 2,703 463
- ---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on
investments, net (1,564) 16,425 17,696 20,790 1,980 3,559 16,461 2,703 463
Net change in unrealized appreciation
(depreciation) on investments (12,316) (8,994)(10,144) (4,633) 58,343 14,488 32,559 44,265 19,701
- ---------------------------------------------------------------------------------------------------------------------------
Total realized gains (losses)
and unrealized appreciation
(depreciation) on investments, net (13,880) 7,431 7,552 16,157 60,323 18,047 49,020 46,968 20,164
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations ($12,292) 8,268 8,041 27,401 65,912 20,881 53,264 48,909 21,125
===========================================================================================================================
<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 (continued)
Statements of Operations (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Templeton Developing Markets Templeton Global
Small Cap Fund Equity Fund Asset Allocation Fund
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ 384 - - 10,159 2,914 562 7,863 228 4
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges 342 105 - 3,251 2,551 3,898 1,310 2,065 25
Administrative charges 85 26 - 813 638 975 327 516 6
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses 427 131 - 4,064 3,189 4,873 1,637 2,581 31
- ---------------------------------------------------------------------------------------------------------------------------
Investment income (loss), net (43) (131) - 6,095 (275) (4,311) 6,226 (2,353) (27)
Realized gains (losses) and unrealized appreciation
(depreciation) on investments:
Realized capital gain distributions
on mutual funds 4,546 - - 16,114 5,391 132 2,268 456 -
Realized gains (losses) on sales of
investments, net (89) 472 - 4,511 2,603 (585) 435 12,194 17
- ---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments,
net 4,457 472 - 20,625 7,994 (453) 2,703 12,650 17
Net change in unrealized appreciation
(depreciation) on investments 8,627 3,624 - 112,780 56,503 4,422 25,156 41,378 (15)
- ---------------------------------------------------------------------------------------------------------------------------
Total realized gains (losses) and
unrealized appreciation (depreciation)
on investments, net 13,084 4,096 - 133,405 64,497 3,969 27,859 54,028 2
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations $13,041 3,965 - 139,500 64,222 (342) 34,085 51,675 (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 (continued)
Statements of Operations (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Templeton Global Templeton Global Templeton International
Growth Fund Income Securities Fund Equity Fund
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ 15,984 8,202 1,137 10,037 7,568 2,871 33,230 19,177 6,289
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges 3,636 3,948 1,255 419 745 470 4,540 6,014 2,178
Administrative charges 909 987 314 105 186 118 1,135 1,504 545
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses 4,545 4,935 1,569 524 931 588 5,675 7,518 2,723
- ---------------------------------------------------------------------------------------------------------------------------
Investment income (loss), net 11,439 3,267 (432) 9,513 6,637 2,283 27,555 11,659 3,566
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions
on mutual funds 5,328 8,202 - - - - 50,952 23,468 7,792
Realized gains (losses) on sales of
investments, net 4,094 2,914 587 596 432 392 7,697 4,043 606
- ---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on
investments, net 9,422 11,116 587 596 432 392 58,649 27,511 8,398
Net change in unrealized appreciation
(depreciation) on investments 97,766 91,158 23,468 (10,005) 2,837 6,634 60,777 114,314 19,054
- ---------------------------------------------------------------------------------------------------------------------------
Total realized gains (losses) and
unrealized appreciation (depreciation)
on investments, net 107,188 102,274 24,055 (9,409) 3,269 7,026 119,426 141,825 27,452
Net increase (decrease) in net assets
from operations $118,627 105,541 23,623 104 9,906 9,309 146,981 153,484 31,018
===========================================================================================================================
<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 (continued)
Statements of Operations (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Templeton International
Smaller Companies Fund Templeton Pacific Growth Fund U.S. Government Securities Fund
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $17 - - 8,455 10,710 4,502 52,576 45,170 41,763
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges 2 3 - 1,477 2,726 1,485 2,922 4,926 3,974
Administrative charges 1 1 - 369 682 371 731 1,231 994
- --------------------------------------------------------------------------------------------------------------------------
Total expenses 3 4 - 1,846 3,408 1,856 3,653 6,157 4,968
- ---------------------------------------------------------------------------------------------------------------------------
Investment income (loss), net 14 (4) - 6,609 7,302 2,646 48,923 39,013 36,795
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions
on mutual funds - - - - 6,208 1,872 - - -
Realized gains (losses) on sales of
investments, net - 119 - 2,418 6,092 1,245 4,956 18,468 7,473
- ---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net - 119 - 2,418 12,300 3,117 4,956 18,468 7,473
Net change in unrealized appreciation
(depreciation) on investments 56 - - 3,854 12,362 13,125 (22,774) (37,068) 56,173
- ---------------------------------------------------------------------------------------------------------------------------
Total realized gains (losses) and unrealized
appreciation (depreciation) on
investments, net 56 119 - 6,272 24,662 16,242 (17,818) (18,600) 63,646
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations $70 115 - 12,881 31,964 18,888 31,105 20,413 100,441
===========================================================================================================================
<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 (continued)
Statements of Operations (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Utility Equity Fund Zero Coupon Fund - 1995 Zero Coupon Fund - 2000
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $66,211 75,714 70,912 - - 17,379 24,296 19,213 13,993
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges 4,369 11,220 8,983 - - (594) 1,075 2,212 2,179
Administrative charges 1,092 2,805 2,246 - - (149) 269 553 545
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses 5,461 14,025 11,229 - - (743) 1,344 2,765 2,724
- ---------------------------------------------------------------------------------------------------------------------------
Investment income (loss), net 60,750 61,689 59,683 - - 18,122 22,952 16,448 11,269
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions
on mutual funds 91,611 - - - - 86 550 190 -
Realized gains (losses) on sales of
investments, net 41,018 118,555 23,410 - - 37,619 695 2,734 1,164
- ---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on
investments, net 132,629 118,555 23,410 - - 37,705 1,245 2,924 1,164
Net change in unrealized appreciation
(depreciation) on investments (104,515) (93,370) 259,686 - - (37,457) (17,258)(13,736) 44,013
- ---------------------------------------------------------------------------------------------------------------------------
Total realized gains (losses) and
unrealized appreciation (depreciation)
on investments, net 28,114 25,185 283,096 - - 248 (16,013)(10,812) 45,177
Net increase (decrease) in net assets
from operations $88,864 86,874 342,779 - - 18,370 6,939 5,636 56,446
===========================================================================================================================
<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 (continued)
Statements of Operations (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Zero Coupon Fund - 2005 Zero Coupon Fund - 2010 Total All Funds
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income:
Dividends reinvested in
fund shares $25,018 19,668 12,928 22,065 8,167 3,109 600,526 514,679 331,100
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense
risk charges 1,159 2,270 2,227 1,082 1,411 916 46,418 77,110 52,287
Administrative charges 290 568 557 271 353 229 11,605 19,277 13,073
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses 1,449 2,838 2,784 1,353 1,764 1,145 58,023 96,387 65,360
- ---------------------------------------------------------------------------------------------------------------------------
Investment income
(loss), net 23,569 16,830 10,144 20,712 6,403 1,964 542,503 418,292 265,740
Realized gains (losses) and
unrealized appreciation
(depreciation) on investments:
Realized capital gain distributions
on mutual funds 87 - - 176 2,213 - 268,254 164,334 36,296
Realized gains (losses) on
sales of investments, net 10,278 4,146 1,495 261 6,865 258 162,932 252,789 122,564
- ---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on
investments, net 10,365 4,146 1,495 437 9,078 258 431,186 417,123 158,860
Net change in unrealized
appreciation (depreciation)
on investments (26,802) (21,955) 68,320 (15,945) 4,806 32,162 78,833 354,212 871,051
- ---------------------------------------------------------------------------------------------------------------------------
Total realized gains
(losses) and unrealized
appreciation (depreciation)
on investments, net (16,437) (17,809) 69,815 (15,508) 13,884 32,420 510,019 771,335 1,029,911
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets from operations $ 7,132 (979) 79,959 5,204 20,287 34,384 1,052,522 1,189,627 1,295,651
===========================================================================================================================
<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 (continued)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Adjustable
U.S. Government Fund Capital Growth Fund Growth and Income Fund
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ - 17,105 1,199 (12) (2) - 53,826 16,297 2,877
Realized gains (losses) on
investments, net - (10,027) 35 - - - 103,525 127,607 42,515
Net change in unrealized appreciation
(depreciation) on investments - (200) 240 426 (140) - 54,834 37,916 184,273
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets from operations - 6,878 1,474 414 (142) - 212,185 181,820 229,665
- ---------------------------------------------------------------------------------------------------------------------------
Policy transactions (note 4):
Purchase payments - 6,969 12,633 - - - 195,581 347,781 233,408
Transfers between funds - (34,766) 11,222 - 4,560 - 85,521 289,040 111,030
Surrenders and terminations - (1,178) - - - - (180,767) (28,415) (54,886)
Policy loan transactions - 74 (1,764) - - - (43,984) 8,174 842
Other transactions (note 2) - (2,842) (6,127) (24) - - (80,293) (145,312) (92,875)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
policy transactions - (31,743) 15,964 (24) 4,560 - (23,942) 471,268 197,519
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets - (24,865) 17,438 390 4,418 - 188,243 653,088 427,184
Net assets at beginning of period - 24,865 7,427 4,418 - - 1,706,254 1,053,166 625,982
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ - - 24,865 4,808 4,418 - 1,894,497 1,706,254 1,053,166
===========================================================================================================================
<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 (continued)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Investment Grade
High Income Fund Income Securities Fund Intermediate Bond Fund
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income
(loss), net $ 146,426 151,749 68,408 67,432 27,550 16,941 - 3,249 3,288
Realized gains (losses)
on investments, net 24,009 42,764 7,610 18,957 7,923 2,313 - 1,981 1,106
Net change in unrealized
appreciation (depreciation)
on investments (90,442) 26,432 122,964 (29,964) 37,183 47,314 - (3,575) 2,630
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
from operations 79,993 220,945 198,982 56,425 72,656 66,568 - 1,655 7,024
- ---------------------------------------------------------------------------------------------------------------------------
Policy transactions (note 4):
Purchase payments 23,713 57,851 44,935 135,753 275,281 223,737 - 11,940 14,163
Transfers between funds 4,520 344,787 37,055 (720) 120,002 186,849 - (72,421) 8,123
Surrenders and
terminations (66,773) (3,551) (14,331) (5,071) (20,210) (14,487) - (751)(40,771)
Policy loan transactions (31,958) 8,073 1,359 (17,617) (4,239) (19,420) - - -
Other transactions (note 2) (23,862) (35,494) (32,177) (48,947) (98,005) (89,585) - (5,413) (7,440)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from policy
transactions (94,360) 371,666 36,841 63,398 272,829 287,094 - (66,645)(25,925)
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in
net assets (14,367) 592,611 235,823 119,823 345,485 353,662 - (64,990)(18,901)
Net assets at beginning
of period 1,874,953 1,282,342 1,046,519 869,551 524,066 170,404 - 64,990 83,891
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at end
of period $1,860,586 1,874,953 1,282,342 989,374 869,551 524,066 - - 64,990
===========================================================================================================================
<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 (continued)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Mutual Discovery Mutual Shares
Money Market Fund Securities Fund Securities Fund
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 14,087 27,558 27,041 (210) (27) - (436) (39) -
Realized gains (losses) on
investments, net - - - 20 - - 486 2 -
Net change in unrealized
appreciation (depreciation)
on investments - - - 7,194 495 - 9,458 1,634 -
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets from operations 14,087 27,558 27,041 7,004 468 - 9,508 1,597 -
- ---------------------------------------------------------------------------------------------------------------------------
Policy transactions (note 4):
Purchase payments 1,119,293 2,288,562 1,140,571 - - - 6,628 - -
Transfers between funds (911,807)(2,221,762) (843,539) 84,921 50,000 - 112,248 84,053 -
Surrenders and terminations (18,394) (27,431) (48,126) - - - - - -
Policy loan transactions (13,150) (5,692) (251) - - - (1,859) - -
Other transactions (note 2) (24,727) (13,338) (124,409) (465) - - (2,431) (44) -
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
policy transactions 151,215 20,339 124,246 84,456 50,000 - 114,586 84,009 -
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in
net assets 165,302 47,897 151,287 91,460 50,468 - 124,094 85,606 -
Net assets at
beginning of period 729,749 681,852 530,565 50,468 - - 85,606 - -
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 895,051 729,749 681,852 141,928 50,468 - 209,700 85,606 -
===========================================================================================================================
<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 (continued)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Natural Resources Securities Fund Real Estate Securities Fund Rising Dividends Fund
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income
(loss), net $ 1,588 837 489 11,244 5,589 2,834 4,244 1,941 961
Realized gains (losses) on
investments, net (1,564) 16,425 17,696 20,790 1,980 3,559 16,461 2,703 463
Net change in unrealized
appreciation (depreciation)
on investments (12,316) (8,994) (10,144) (4,633) 58,343 14,488 32,559 44,265 19,701
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets from
operations (12,292) 8,268 8,041 27,401 65,912 20,881 53,264 48,909 21,125
- ---------------------------------------------------------------------------------------------------------------------------
Policy transactions (note 4):
Purchase payments 8,380 18,730 24,963 38,356 67,454 53,203 45,485 74,745 52,764
Transfers between funds 1,135 (46,431) 23,956 90,534 86,682 38,779 52,735 86,767 38,476
Surrenders and
terminations 324 (7,791) (81,139) (493) (1,098) (8,139) (599) (7,693) (264)
Policy loan transactions (65) (524) 282 (13,419) (1,340) (145) (3,382) (1,876) -
Other transactions (note 2) (3,816) (9,019) (12,614) (19,961) (27,619) (23,363) (22,584) (33,070)(19,499)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from policy
transactions 5,958 (45,035) (44,552) 95,017 124,079 60,335 71,655 118,873 71,477
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in
net assets (6,334) (36,767) (36,511) 122,418 189,991 81,216 124,919 167,782 92,602
Net assets at beginning
of period 128,017 164,784 201,295 349,516 159,525 78,309 304,911 137,129 44,527
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $121,683 128,017 164,784 471,934 349,516 159,525 429,830 304,911 137,129
===========================================================================================================================
<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 (continued)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Templeton Developing Markets Templeton Global
Small Cap Fund Equity Fund Asset Allocation Fund
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net ($43) (131) - 6,095 (275) (4,311) 6,226 (2,353) (27)
Realized gains (losses) on
investments, net 4,457 472 - 20,625 7,994 (453) 2,703 12,650 17
Net change in unrealized appreciation
(depreciation) on investments 8,627 3,624 - 112,780 56,503 4,422 25,156 41,378 (15)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets from operations 13,041 3,965 - 139,500 64,222 (342) 34,085 51,675 (25)
- ---------------------------------------------------------------------------------------------------------------------------
Policy transactions (note 4):
Purchase payments 15,260 683 - 100,058 215,896 169,165 37 439 -
Transfers between funds 109,515 51,952 - 133,539 267,310 63,297 15,492 333,332 311
Surrenders and terminations (965) 75 - (5,202) (10,080) (18,763) (108) - -
Policy loan transactions - - - (13,079) (2,638) - - - -
Other transactions (note 2) (5,191) (239) - (39,765) (73,383) (61,489) (3,692) (1,945) (66)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
policy transactions 118,619 52,471 - 175,551 397,105 152,210 11,729 331,826 245
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 131,660 56,436 - 315,051 461,327 151,868 45,814 383,501 220
Net assets at beginning of period 56,436 - - 669,146 207,819 55,951 383,721 220 -
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $188,096 56,436 - 984,197 669,146 207,819 429,535 383,721 220
===========================================================================================================================
<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 (continued)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Templeton Global Templeton Global Templeton International
Growth Fund Income Securities Fund Equity Fund
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income
(loss), net $ 11,439 3,267 (432) 9,513 6,637 2,283 27,555 11,659 3,566
Realized gains (losses)
on investments, net 9,422 11,116 587 596 432 392 58,649 27,511 8,398
Net change in unrealized
appreciation (depreciation)
on investments 97,766 91,158 23,468 (10,005) 2,837 6,634 60,777 114,314 19,054
- ---------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
net assets from
operations 118,627 105,541 23,623 104 9,906 9,309 146,981 153,484 31,018
- ---------------------------------------------------------------------------------------------------------------------------
Policy transactions (note 4):
Purchase payments 158,441 335,873 237,156 21,092 39,862 42,908 185,610 371,300 297,409
Transfers between
funds 124,328 119,840 114,188 2,450 9,506 18,457 90,602 100,214 206,753
Surrenders and
terminations (8,407) (12,771) (6,710) (678) (2,101) (6,040) (14,251) (30,572) (9,230)
Policy loan transactions (8,239) (8,767) (3,177) (1,806) (425) (638) (24,789) (10,040) (1,799)
Other transactions
(note 2) (63,897) (113,183) (83,481) (8,771) (16,260) (17,786) (67,613) (129,653)(110,168)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
net assets resulting
from policy
transactions 202,226 320,992 257,976 12,287 30,582 36,901 169,559 301,249 382,965
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in
net assets 320,853 426,533 281,599 12,391 40,488 46,210 316,540 454,733 413,983
Net assets at beginning
of period 774,892 348,359 66,760 129,516 89,028 42,818 1,010,009 555,276 141,293
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at end
of period $1,095,745 774,892 348,359 141,907 129,516 89,028 1,326,549 1,010,009 555,276
===========================================================================================================================
<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 (continued)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Templeton International
Smaller Companies Fund Templeton Pacific Growth Fund U.S. Government Securities Fund
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 14 (4) - 6,609 7,302 2,646 48,923 39,013 36,795
Realized gains (losses) on
investments, net - 119 - 2,418 12,300 3,117 4,956 18,468 7,473
Net change in unrealized appreciation
(depreciation) on investments 56 - - 3,854 12,362 13,125 (22,774) (37,068) 56,173
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets from operations 70 115 - 12,881 31,964 18,888 31,105 20,413 100,441
- ---------------------------------------------------------------------------------------------------------------------------
Policy transactions (note 4):
Purchase payments - - - 72,994 181,194 141,914 20,908 26,467 25,128
Transfers between funds 3,083 (115) - (8,204) 14,234 74,887 900 261,674 24,109
Surrenders and terminations - - - (3,135) (20,255) (10,270) (18,365) (7,837) (18,462)
Policy loan transactions - - - (9,047) (2,894) (27,456) (8,526) (424) (2,060)
Other transactions (note 2) - - - (30,865) (73,664) (64,733) (15,054) (19,100) (16,258)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
policy transactions 3,083 (115) - 21,743 98,615 114,342 (20,137) 260,780 12,457
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 3,153 - - 34,624 130,579 133,230 10,968 281,193 112,898
Net assets at beginning of period - - - 428,593 298,014 164,784 928,142 646,949 534,051
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $3,153 - - 463,217 428,593 298,014 939,110 928,142 646,949
===========================================================================================================================
<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 (continued)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Utility Equity Fund Zero Coupon Fund - 1995 Zero Coupon Fund - 2000
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 60,750 61,689 59,683 - - 18,122 22,952 16,448 11,269
Realized gains (losses) on
investments, net 132,629 118,555 23,410 - - 37,705 1,245 2,924 1,164
Net change in unrealized
appreciation (depreciation)
on investments (104,515) (93,370) 259,686 - - (37,457) (17,258) (13,736) 44,013
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets from
operations 88,864 86,874 342,779 - - 18,370 6,939 5,636 56,446
- ---------------------------------------------------------------------------------------------------------------------------
Policy transactions (note 4):
Purchase payments 59,400 127,511 116,016 - - - - - -
Transfers between funds (69,136) (163,650) 124,589 - - (270,886) - - 10,631
Surrenders and terminations (2,276) (80,389) (35,449) - - - - - -
Policy loan transactions (55,990) (97,734) (13,309) - - - (73) (64) (64)
Other transactions (note 2) (32,135) (65,596) (62,877) - - (2,815) (2,538) (4,271) (3,831)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from policy transactions (100,137) (279,858) 128,970 - - (273,701) (2,611) (4,335) 6,736
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in
net assets (11,273) (192,984) 471,749 - - (255,331) 4,328 1,301 63,182
Net assets at beginning
of period 1,352,938 1,545,922 1,074,173 - - 255,331 350,723 349,422 286,240
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $1,341,665 1,352,938 1,545,922 - - - 355,051 350,723 349,422
===========================================================================================================================
<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 (continued)
Statements of Changes in Net Assets (cont.)
For the period ended June 30, 1997 (unaudited) and the years ended December 31, 1996 and 1995
Zero Coupon Fund - 2005 Zero Coupon Fund - 2010 Total All Funds
- ---------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income
(loss), net $ 23,569 16,830 10,144 20,712 6,403 1,964 542,503 418,292 265,740
Realized gains (losses) on
investments, net 10,365 4,146 1,495 437 9,078 258 431,186 417,123 158,860
Net change in unrealized
appreciation (depreciation)
on investments (26,802) (21,955) 68,320 (15,945) 4,806 32,162 78,833 354,212 871,051
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
from operations 7,132 (979) 79,959 5,204 20,287 34,384 1,052,522 1,189,627 1,295,651
- ---------------------------------------------------------------------------------------------------------------------------
Policy transactions (note 4):
Purchase payments - - - - - - 2,206,989 4,448,538 2,830,073
Transfers between funds (61,210) 57,145 - 3,651 223,644 - (135,903) (34,403) (21,713)
Surrenders and
terminations - (3,894) - - - - (325,160) (265,942) (367,067)
Policy loan transactions - - (687) (183) (176) (169) (247,166) (120,512) (68,456)
Other transactions
(note 2) (3,109) (4,109) (3,625) (3,385) (3,437) (1,657) (503,125) (874,996) (836,875)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from policy
transactions (64,319) 49,142 (4,312) 83 220,031 (1,826) 995,635 3,152,685 1,535,962
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in
net assets (57,187) 48,163 75,647 5,287 240,318 32,558 2,048,157 4,342,312 2,831,613
Net assets at beginning
of period 385,323 337,160 261,513 356,054 115,736 83,178 12,928,936 8,586,624 5,755,011
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at end
of period $328,136 385,323 337,160 361,341 356,054 115,736 14,977,093 12,928,936 8,586,624
===========================================================================================================================
<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, 1997 (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. and its Templeton and Franklin affiliates, 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 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. The Mutual Discovery Securities Fund and
Mutual Shares Securities Fund were added as available investment options on
November 8, 1996.
The Investment Grade Intermediate Bond Fund and Adjustable U.S. Government Fund
were closed on October 25, 1996 when shares of the U.S. Government Securities
Fund were substituted for all shares of both funds.
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Notes to Financial Statements (continued)
June 30, 1997 (unaudited)
2. SIGNIFICANT ACCOUNTING POLICIES (cont.)
Investments (cont.)
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. The Precious Metals Fund name was changed to
Natural Resources Securities Fund on May 1, 1997.
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 period ended June 30, 1997 (unaudited)
and the years ended December 31, 1996 and 1995 were $404,517, $715,700, and
$581,193, 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,
1997 (unaudited) and the years ended December 31, 1996 and 1995 were $33,349,
$28,152, and $28,613, 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 owner for the period ended June
30, 1997 (unaudited) and the years ended December 31, 1996 and 1995 were
$106,832, $204,321, and $292,695, 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, 1997 (unaudited) and the
years ended December 31, 1996 and 1995, respectively. Net transfers to the Fixed
Account during the period ended June 30, 1997 (unaudited) and the years ended
December 31, 1996 and 1995 were $135,903, $34,403, and $21,713, 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. 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.
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Notes to Financial Statements (continued)
June 30, 1997 (unaudited)
3. FEDERAL INCOME TAXES (cont.)
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.
4. POLICY TRANSACTIONS - UNIT ACTIVITY
Transactions in units for each fund for the period ended June 30, 1997
(unaudited) and for the years ended December 31, 1996 and 1995, were as follows:
<TABLE>
<CAPTION>
Adjustable Growth Investment Mutual Mutual
U.S Capital and High Income Grade Money Discovery Shares
Government Growth Income Income Securities Intermediate Market Securities Securities
Fund Fund Fund Fund Fund Bond Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Units outstanding at
December 31, 1994 654 - 29,795 63,380 10,514 6,002 37,381 - -
Policy transactions:
Purchase payments 1,060 - 9,561 2,463 12,397 963 77,441 - -
Transfers between funds 966 - 4,664 1,925 10,593 562 (57,166) - -
Surrenders and terminations - - (2,237) (772) (783) (2,761) (3,275) - -
Policy loan transactions (151) - 38 75 (1,137) - (17) - -
Other transactions (516) - (3,800) (1,738) (4,970) (507) (8,596) - -
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in units
resulting from policy transactions 1,359 - 8,226 1,953 16,100 (1,743) 8,387 - -
- ---------------------------------------------------------------------------------------------------------------------------
Units outstanding at
December 31, 1995 2,013 - 38,021 65,333 26,614 4,259 45,768 - -
===========================================================================================================================
Policy transactions:
Purchase payments 553 - 12,119 2,801 13,495 778 147,764 - -
Transfers between funds (2,257) 391 9,962 17,863 5,904 (4,635) (143,612) 4,953 8,284
Surrenders and terminations (94) - (1,005) (177) (1,004) (49) (1,836) - -
Policy loan transactions 6 - 311 405 (212) - (376) - -
Other transactions (221) - (5,057) (1,722) (4,812) (353) (778) - (4)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in units
resulting from policy transactions (2,013) 391 16,330 19,170 13,371 (4,259) 1,162 4,953 8,280
- ---------------------------------------------------------------------------------------------------------------------------
Units outstanding at December 31, 1996 - 391 54,351 84,503 39,985 - 46,930 4,953 8,280
===========================================================================================================================
Policy transactions (unaudited):
Purchase payments - - 5,901 1,024 6,106 - 62,452 - 618
Transfers between funds - - 2,589 193 (42) - (49,447) 7,683 10,412
Surrenders and terminations - - (5,491) (2,976) (230) - (1,178) - -
Policy loan transactions - - (1,342) (1,405) (796) - (838) - (176)
Other transactions - (2) (2,418) (1,053) (2,200) - (1,572) (44) (230)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in units
resulting from policy transactions - (2) (761) (4,217) 2,838 - 9,417 7,639 10,624
- ---------------------------------------------------------------------------------------------------------------------------
Units outstanding at June 30, 1997
(unaudited) - 389 53,590 80,286 42,823 - 56,347 12,592 18,904
===========================================================================================================================
</TABLE>
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Notes to Financial Statements (continued)
June 30, 1997 (unaudited)
4. POLICY TRANSACTIONS - UNIT ACTIVITY (cont.)
<TABLE>
<CAPTION>
Natural Templeton Templeton Templeton Templeton Templeton
Resources Real Estate Rising Small Developing Global Asset Global Global Income International
Securities Securities Dividends Cap Markets Allocation Growth Securities Equity
Fund Fund Fund Fund Equity Fund Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Units outstanding at
December 31, 1994 13,441 4,368 4,474 - 6,099 - 6,748 3,175 11,403
Policy transactions:
Purchase payments 1,662 2,884 4,625 - 18,183 - 22,517 2,992 22,647
Transfers between funds 1,698 2,056 3,323 - 6,624 27 11,063 1,333 15,984
Surrenders and terminations (5,150) (427) (23) - (2,067) - (627) (416) (691)
Policy loan transactions 20 (7) - - (211) - (307) (44) (130)
Other transactions (840) (1,246) (1,699) - (6,418) (6) (7,923) (1,239) (8,383)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in units resulting from
policy transactions (2,610) 3,260 6,226 - 16,111 21 24,723 2,626 29,427
- ---------------------------------------------------------------------------------------------------------------------------
Units outstanding at
December 31, 1995 10,831 7,628 10,700 - 22,210 21 31,471 5,801 40,830
===========================================================================================================================
Policy transactions:
Purchase payments 1,115 2,975 5,400 54 20,769 39 28,048 2,551 24,859
Transfers between funds (2,791) 3,397 6,298 4,297 24,526 30,441 9,880 609 6,586
Surrenders and terminations (438) (51) (581) 6 (952) - (1,089) (138) (2,070)
Policy loan transactions (29) (62) (134) - (251) - (718) (26) (665)
Other transactions (536) (1,209) (2,379) (19) (7,042) (169) (9,435) (1,041) (8,691)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in units resulting from
policy transactions (2,679) 5,050 8,604 4,338 37,050 30,311 26,686 1,955 20,019
- ---------------------------------------------------------------------------------------------------------------------------
Units outstanding at
December 31, 1996 8,152 12,678 19,304 4,338 59,260 30,332 58,157 7,756 60,849
===========================================================================================================================
Policy transactions (unaudited):
Purchase payments 560 1,379 2,705 1,168 8,017 3 11,336 1,279 10,692
Transfers between funds 49 3,115 3,066 8,397 10,622 1,128 8,768 148 5,075
Surrenders and terminations 20 (18) (36) (74) (428) (9) (602) (41) (834)
Policy loan transactions (23) (471) (213) - (1,060) - (596) (109) (1,421)
Other transactions (254) (713) (1,346) (401) (3,197) (289) (4,575) (532) (3,894)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in units resulting from
policy transactions 352 3,292 4,176 9,090 13,954 833 14,331 745 9,618
- ---------------------------------------------------------------------------------------------------------------------------
Units outstanding at
June 30, 1997 (unaudited) 8,504 15,970 23,480 13,428 73,214 31,165 72,488 8,501 70,467
===========================================================================================================================
</TABLE>
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Notes to Financial Statements (continued)
June 30, 1997 (unaudited)
4. POLICY TRANSACTIONS - UNIT ACTIVITY (cont.)
<TABLE>
<CAPTION>
Templeton
International Templeton U.S. Zero Zero Zero Zero
Smaller Pacific Government Utility Coupon Coupon Coupon Coupon Total
Companies Growth Securities Equity Fund - Fund - Fund - Fund - All
Fund Fund Fund Fund 1995 2000 2005 2010 Funds
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Units outstanding at
December 31, 1994 - 12,635 31,714 59,969 14,325 14,594 12,559 3,804 347,034
Policy transactions:
Purchase payments - 10,718 1,355 5,744 - - - - 197,212
Transfers between funds - 5,757 1,281 6,185 (14,174) 458 - - 3,159
Surrenders and terminations - (779) (965) (1,893) - - - - (22,866)
Policy loan transactions - (2,141) (111) (695) - (3) (30) (6) (4,857)
Other transactions - (4,868) (872) (3,112) (151) (175) (147) (63) (57,269)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in units
resulting from policy transactions - 8,687 688 6,229 (14,325) 280 (177) (69) 115,379
- ---------------------------------------------------------------------------------------------------------------------------
Units outstanding at December 31, 1995 - 21,322 32,402 66,198 - 14,874 12,382 3,735 462,413
===========================================================================================================================
Policy transactions:
Purchase payments - 12,100 1,329 5,397 - - - - 282,146
Transfers between funds - 802 12,856 (6,933) - 1 2,260 8,290 (2,628)
Surrenders and terminations - (1,318) (400) (3,354) - - (149) - (14,699)
Policy loan transactions - (189) (22) (4,007) - (3) - (7) (5,979)
Other transactions - (4,907) (961) (2,782) - (185) (162) (122) (52,587)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in units
resulting from policy transactions - 6,488 12,802 (11,679) - (187) 1,949 8,161 206,253
- ---------------------------------------------------------------------------------------------------------------------------
Units outstanding at December 31, 1996 - 27,810 45,204 54,519 - 14,687 14,331 11,896 668,666
===========================================================================================================================
Policy transactions (unaudited):
Purchase payments - 4,826 1,008 2,367 - - - - 121,441
Transfers between funds 266 (525) 47 (2,720) - - (2,226) 119 6,717
Surrenders and terminations - (207) (864) (90) - - - - (13,058)
Policy loan transactions - (575) (415) (2,262) - (3) - (6) (11,711)
Other transactions - (2,034) (724) (1,274) - (105) (115) (113) (27,085)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in units
resulting from policy transactions 266 1,485 (948) (3,979) - (108) (2,341) - 76,304
- ---------------------------------------------------------------------------------------------------------------------------
Units outstanding at
June 30, 1997 (unaudited) 266 29,295 44,256 50,540 - 14,579 11,990 11,896 744,970
===========================================================================================================================
</TABLE>
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Notes to Financial Statements (continued)
June 30, 1997 (unaudited)
5. UNIT VALUES
A summary of unit values and units outstanding for variable life contracts and
the expense ratios, including expenses of the underlying funds, for the
six-month period ended June 30, 1997 (unaudited) and each of the five years in
the period ended December 31, 1996 follows.
<TABLE>
<CAPTION>
Ratio of
Expenses
Units to Average
Outstanding Unit Value Net Assets Net Assets*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADJUSTABLE U.S. GOVERNMENT FUND
December 31,
19961 18,047 $12.873 $ 232,322 1.34+%
1995 2,013 12.352 24,865 1.34
1994 654 11.374 7,427 1.32
1993 403 11.481 4,622 1.33
1992 410 11.170 4,577 1.35
CAPITAL GROWTH FUND
June 30, 1997 (unaudited) 389 12.370 4,808 1.51
December 31,
19962 391 11.303 4,418 1.52+
GROWTH AND INCOME FUND
June 30, 1997 (unaudited) 53,590 35.352 1,894,497 1.23
December 31,
1996 54,351 31.393 1,706,254 1.25
1995 38,021 27.700 1,053,166 1.27
1994 29,795 21.010 625,982 1.29
1993 29,140 21.604 629,549 1.33
1992 36,756 19.733 725,302 1.37
HIGH INCOME FUND
June 30, 1997 (unaudited) 80,286 23.175 1,860,586 1.27
December 31,
1996 84,503 22.188 1,874,953 1.29
1995 65,333 19.628 1,282,342 1.31
1994 63,380 16.512 1,046,519 1.35
1993 65,065 17.020 1,107,418 1.39
1992 65,825 14.815 975,210 1.43
INCOME SECURITIES FUND
June 30, 1997 (unaudited) 42,823 23.104 989,374 1.25
December 31,
1996 39,985 21.747 869,551 1.25
1995 26,614 19.691 524,066 1.26
1994 10,514 16.208 170,404 1.29
1993 2,104 17.423 36,655 1.31
1992 1,598 14.799 23,648 1.42
</TABLE>
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Notes to Financial Statements (continued)
June 30, 1997 (unaudited)
5. UNIT VALUES (cont.)
<TABLE>
<CAPTION>
Ratio of
Expenses
Units to Average
Outstanding Unit Value Net Assets Net Assets*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT GRADE INTERMEDIATE BOND FUND
December 31,
19961 4,699 $15.617 $ 73,376 1.35+%
1995 4,259 15.260 64,990 1.36
1994 6,002 13.978 83,891 1.38
1993 582 14.017 8,158 1.41
1992 588 13.009 7,652 1.43
MONEY MARKET FUND
June 30, 1997 (unaudited) 56,347 15.885 895,051 1.19
December 31,
1996 46,930 15.550 729,749 1.18
1995 45,768 14.898 681,852 1.15
1994 37,381 14.194 530,565 1.21
1993 22,430 13.773 308,920 1.41
1992 26,464 13.532 358,105 1.44
MUTUAL DISCOVERY SECURITIES FUND
June 30, 1997 (unaudited) 12,592 11.271 141,928 1.87
December 31,
19963 4,953 10.190 50,468 2.12+
MUTUAL SHARES SECURITIES FUND
June 30, 1997 (unaudited) 18,904 11.092 209,700 1.58
December 31,
19963 8,280 10.339 85,606 1.75+
NATURAL RESOURCES SECURITIES FUND
June 30, 1997 (unaudited) 8,504 14.310 121,683 1.41
December 31,
1996 8,152 15.704 128,017 1.40
1995 10,831 15.214 164,784 1.41
1994 13,441 14.977 201,295 1.43
1993 7,933 15.396 122,135 1.43
1992 16,401 9.967 163,472 1.44
REAL ESTATE SECURITIES FUND
June 30, 1997 (unaudited) 15,970 29.550 471,934 1.28
December 31,
1996 12,678 27.568 349,516 1.32
1995 7,628 20.913 159,525 1.34
1994 4,368 17.928 78,309 1.37
1993 3,265 17.556 57,318 1.42
1992 3,450 14.862 51,275 1.44
</TABLE>
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Notes to Financial Statements (continued)
June 30, 1997 (unaudited)
5. UNIT VALUES (cont.)
<TABLE>
<CAPTION>
Ratio of
Expenses
Units to Average
Outstanding Unit Value Net Assets Net Assets*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
RISING DIVIDENDS FUND
June 30, 1997 (unaudited) 23,480 $18.307 $ 429,830 1.49%
December 31,
1996 19,304 15.795 304,911 1.51
1995 10,700 12.816 137,129 1.53
1994 4,474 9.952 44,527 1.55
1993 3,576 10.453 37,377 1.54
19924 1,899 10.909 20,717 1.42+
SMALL CAP FUND
June 30, 1997 (unaudited) 13,428 14.008 188,096 1.52
December 31,
1996 4,338 13.011 56,436 1.52
19955 - 10.157 - 1.65+
TEMPLETON DEVELOPING MARKETS EQUITY FUND
June 30, 1997 (unaudited) 73,214 13.443 984,197 2.17
December 31,
1996 59,260 11.292 669,146 2.24
1995 22,210 9.357 207,819 2.16
19946 6,099 9.173 55,951 2.28+
TEMPLETON GLOBAL ASSET ALLOCATION FUND
June 30, 1997 (unaudited) 31,165 13.783 429,535 1.62
December 31,
1996 30,332 12.651 383,721 1.61
19957 21 10.637 220 1.65+
TEMPLETON GLOBAL GROWTH FUND
June 30, 1997 (unaudited) 72,488 15.116 1,095,745 1.64
December 31,
1996 58,157 13.324 774,892 1.68
1995 31,471 11.069 348,359 1.72
19946 6,748 9.894 66,760 1.89+
TEMPLETON GLOBAL INCOME SECURITIES FUND
June 30, 1997 (unaudited) 8,501 16.695 141,907 1.36
December 31,
1996 7,756 16.700 129,516 1.36
1995 5,801 15.347 89,028 1.39
1994 3,175 13.483 42,818 1.46
1993 1,537 14.297 21,976 1.48
1992 1,562 12.346 19,280 1.42
</TABLE>
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Notes to Financial Statements (continued)
June 30, 1997 (unaudited)
5. UNIT VALUES (cont.)
<TABLE>
<CAPTION>
Ratio of
Expenses
Units to Average
Outstanding Unit Value Net Assets Net Assets*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEMPLETON INTERNATIONAL EQUITY FUND
June 30, 1997 (unaudited) 70,467 $18.825 $1,326,549 1.64%
December 31,
1996 60,849 16.598 1,010,009 1.64
1995 40,830 13.600 555,276 1.67
1994 11,403 12.390 141,293 1.74
1993 1,368 12.375 16,931 1.87
19924 - 9.697 - 2.52+
TEMPLETON INTERNATIONAL SMALLER COMPANIES FUND
June 30, 1997 (unaudited) 266 11.832 3,153 1.83
December 31,
19962 - 11.194 - 1.53+
TEMPLETON PACIFIC GROWTH FUND
June 30, 1997 (unaudited) 29,295 15.812 463,217 1.75
December 31,
1996 27,810 15.412 428,593 1.74
1995 21,322 13.977 298,014 1.76
1994 12,635 13.042 164,784 1.82
1993 9,924 14.407 142,972 1.89
19924 586 9.816 5,750 2.06+
U.S. GOVERNMENT SECURITIES FUND
June 30, 1997 (unaudited) 44,256 21.220 939,110 1.25
December 31,
1996 45,204 20.532 928,142 1.26
1995 32,402 19.966 646,949 1.27
1994 31,714 16.840 534,051 1.28
1993 38,612 17.775 686,329 1.29
1992 39,596 16.324 646,356 1.34
UTILITY EQUITY FUND
June 30, 1997 (unaudited) 50,540 26.547 1,341,665 1.25
December 31,
1996 54,519 24.816 1,352,938 1.25
1995 66,198 23.353 1,545,922 1.25
1994 59,969 17.912 1,074,173 1.27
1993 66,241 20.406 1,351,721 1.26
1992 72,790 18.600 1,353,865 1.30
ZERO COUPON FUND - 1995
December 31,
19958 10,963 18.957 207,834 1.15+
1994 14,325 17.823 255,331 1.15
1993 14,511 17.832 258,760 1.11
1992 14,686 16.719 245,536 1.00
</TABLE>
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT A
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Notes to Financial Statements (continued)
June 30, 1997 (unaudited)
5. UNIT VALUES (cont.)
<TABLE>
<CAPTION>
Ratio of
Expenses
Units to Average
Outstanding Unit Value Net Assets Net Assets*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ZERO COUPON FUND - 2000
June 30, 1997 (unaudited) 14,579 $24.354 $ 355,051 1.15%
December 31,
1996 14,687 23.880 350,723 1.15
1995 14,874 23.491 349,422 1.15
1994 14,594 19.614 286,240 1.15
1993 15,249 21.191 323,131 1.12
1992 15,439 18.380 283,774 1.00
ZERO COUPON FUND - 2005
June 30, 1997 (unaudited) 11,990 27.367 328,136 1.15
December 31,
1996 14,331 26.888 385,323 1.15
1995 12,382 27.229 337,160 1.15
1994 12,559 20.821 261,513 1.15
1993 16,042 23.198 372,147 1.12
1992 17,524 19.121 335,065 1.00
ZERO COUPON FUND - 2010
June 30, 1997 (unaudited) 11,896 30.374 361,341 1.15
December 31,
1996 11,896 29.931 356,054 1.15
1995 3,735 30.991 115,736 1.15
1994 3,804 21.866 83,178 1.15
1993 7,408 24.745 183,310 1.00
1992 3,968 19.877 78,869 1.00
<FN>
* For the period ended June 30, 1997 (unaudited) and the year ended December 31,
including the effect of the expenses of the underlying funds.
+ Annualized.
1 Period from January 1, 1996 to October 25, 1996 (fund closure).
2 Period from May 1, 1996 (fund commencement) to December 31, 1996.
3 Period from November 8, 1996 (fund commencement) to December 31, 1996.
4 Period from January 27, 1992 (fund commencement) to December 31, 1992.
5 Period from November 1, 1995 (fund commencement) to December 31, 1995.
6 Period from July 1, 1994 (fund commencement) to December 31, 1994.
7 Period from May 1, 1995 (fund commencement) to December 31, 1995.
8 Period from January 1, 1995 to December 15, 1995 (fund closure).
</FN>
</TABLE>
