F13 *P1
Supplement dated January 15, 1999
to the Prospectus Dated May 1, 1998
of
ALLIANZ VALUELIFE
Flexible-Premium Variable Life Insurance
Allianz Life Variable Account A
I. YEAR 2000 Allianz Life has initiated programs to ensure that all of the
computer systems utilized to provide services and administer policies will
function properly in the year 2000. An assessment of the total expected costs
specifically related to the year 2000 conversion has been completed; the total
amounts to be expensed over the next two years are not expected to have a
significant effect on Allianz Life's financial position or results of
operations. Allianz Life believes it has taken steps that are reasonably
designed to address the potential failure of computer systems used by its
service providers and to ensure its year 2000 program is completed on a timely
basis. II. The following changes are made to the section entitled "Portfolio
Annual Expenses": a) The following chart restates information about certain
Portfolios, as indicated below:
Management Total
and Portfolio Other Annual
Portfolio Administration Fees Expenses Expenses
- --------------------------------------------------------------------------------
Mutual Shares Securities Fund ............. .75%* .05% .80%
Templeton Global Asset Allocation Fund .... .80%* .14% .94%
*Includes a .15% Administration Fee which is a direct expense of the Portfolio.
b) The following footnote is restated as follows:
3For the year ended December 31, 1997, Franklin Advisers, Inc. ("Advisers")
agreed in advance to waive a portion of its management fees and, if
necessary, to pay certain expenses of the Money Market Fund. With this
reduction, management fees and total annual expenses, including management
and portfolio administration fees, paid by the Portfolio represented .43% and
.45% of the Portfolio's average net assets, respectively. The voluntary
expense reduction was discontinued by Advisers effective January 1, 1999.
Please note that certain of the Portfolios discussed in the Trust prospectus are
not currently available in connection with the Policy.
