File Nos. 333-95729
811-05618
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 ( )
Pre-Effective Amendment No. ( )
Post-Effective Amendment No. 1 (X)
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 ( )
Amendment No. 82 (X)
(Check appropriate box or boxes.)
ALLIANZ LIFE VARIABLE ACCOUNT B
-----------------------------------
(Exact Name of Registrant)
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
-----------------------------------------------------
(Name of Depositor)
1750 Hennepin Avenue, Minneapolis, MN 55403
------------------------------------------- -----
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (612) 347-6596
Name and Address of Agent for Service
-------------------------------------------
Suzanne J. Pepin
Allianz Life Insurance Company of North America
1750 Hennepin Avenue
Minneapolis, MN 55403
Copies to:
Judith A. Hasenauer
Blazzard, Grodd & Hasenauer, P.C.
P.O. Box 5108
Westport, CT 06881
(203) 226-7866
It is proposed that this filing will become effective:
_____ immediately upon filing pursuant to paragraph (b) of Rule 485
__X__ on December 15, 2000 pursuant to paragraph (b) of Rule 485
_____ 60 days after filing pursuant to paragraph (a)(1) of Rule 485
_____ on (date) pursuant to paragraph (a)(1) of Rule 485
If appropriate, check the following:
_____ this post-effective amendment designates a new effective date
for a previously filed post-effective amendment.
Title of Securities Registered:
Individual Deferred Variable Annuity Contracts
CROSS REFERENCE SHEET
(Required by Rule 495)
Item No. Location
-------- --------
PART A
Item 1. Cover Page . . . . . . . . . . . . . . . . . Cover Page
Item 2. Definitions . . . . . . . . . . . . . . . . Index of Terms
Item 3. Synopsis or Highlights. . . . . . . . . . . Summary
Item 4. Condensed Financial Information. . . . . . . Appendix
Item 5. General Description of Registrant, Depositor,
and Portfolio Companies. . . . . . . . . . . . Other Information-
The Separate Account,
Allianz Life,
Investment Options
Item 6. Deductions. . . . . . . . .. . . . . . . . . . Expenses
Item 7. General Description of Variable
Annuity Contracts . . . . . . . . . . . . . . .The Variable
Annuity Contract
Item 8. Annuity Period. . .. . . . . . . . . . . . . . Annuity Payments
(The Payout Phase)
Item 9. Death Benefit. . . . . . . . . . . . . . . . . Death Benefit
Item 10. Purchases and Contract Value. . . . . . . . . .Purchase
Item 11. Redemptions. . . . . . . . . . . . . . . . . . Access to Your Money
Item 12. Taxes. . . . . . . . . . . . . . . . . . . . . Taxes
Item 13. Legal Proceedings. . . . . . . . . . . . . . . None
Item 14. Table of Contents of the Statement of
Additional Information. . . . . . . . . . . Table of Contents
of the Statement of
Additional Information
CROSS REFERENCE SHEET (cont'd)
(Required by Rule 495)
Item No. Location
-------- --------
PART B
Item 15. Cover Page. . . . . . . . .. . . . . . . . Cover Page
Item 16. Table of Contents. . . . . . . . . . . . . Table of Contents
Item 17. General Information and History. . . . . . Insurance Company
Item 18. Services. . . . . . . . . . . . .. . . . . Not Applicable
Item 19. Purchase of Securities Being Offered. . . . Not Applicable
Item 20. Underwriters. . . . . . . . . . . . . . . . Distributor
Item 21. Calculation of Performance Data. . . . . . Calculation of
Performance Data
Item 22. Annuity Payments. . . . . . . . . . . . . . Annuity Provisions
Item 23. Financial Statements. . . . . . . . . . . Financial Statements
PART C
Information required to be included in Part C is set forth under the appropriate
Item so numbered, in Part C to this Registration Statement.
<PAGE>
PART A
PART A WAS FILED IN REGISTRANT'S PRE-EFFECTIVE AMENDMENT NO. 1 TO FORM N-4/A ON
APRIL 13, 2000 AND IS INCORPORATED HEREIN BY REFERENCE.
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
ALLIANZ LIFE VARIABLE ACCOUNT B
USALLIANZ REWARDS TM
FLEXIBLE PREMIUM VARIABLE ANNUITY
PROSPECTUS SUPPLEMENT DATED DECEMBER 15, 2000
<TABLE>
<CAPTION>
The following information is added to the prospectus for the variable annuity contracts issued by
Allianz Life Insurance Company of North America.
1. The following two Variable Options which invest in Class II share Portfolios of The Prudential
Series Fund, Inc. are now available under your Contract:
PORTFOLIO INVESTMENT ADVISER
---------------------------------------------------------------------------------------------------
<S> <C>
SP Jennison International Growth Portfolio Prudential Investments Fund Management LLC
SP Strategic Partners Focused Growth Portfolio Prudential Investments Fund Management LLC
</TABLE>
<TABLE>
<CAPTION>
2. The following is added to the 1999 Annual Fund Expenses table:
TOTAL FUND
OTHER EXPENSES EXPENSES
(AFTER WAIVERS/ (AFTER WAIVERS/
REIMBURSEMENTS, REIMBURSEMENTS,
MANAGEMENT 12B-1 IF ANY, AS IF ANY, AS
PORTFOLIO FEES FEES NOTED) NOTED)
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SP Jennison International Growth Portfolio1 .85% .25% .54% 1.64%
SP Strategic Partners Focused Growth Portfolio1 .90% .25% .26% 1.41%
<FN>
1 Because this is the first year of operation for all "SP" portfolios, other expenses are estimated based on
management's projection of non-advisory fee expenses. Each "SP" portfolio has expense reimbursements in
effect and the charges with reimbursement are reflected in the table. These expense reimbursements are
voluntary and may be terminated at any time. Without reimbursement, total operating expenses are estimated
to be 2.24% for the SP Jennison International Growth Portfolio and 1.72% for the SP Strategic Partners
Focused Growth Portfolio.
</FN>
</TABLE>
<TABLE>
<CAPTION>
3. The following examples are added to the prospectus for the new Variable
Options:
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return on your money if you surrender your Contract at the end of
each time period for Contracts with:
(a) the traditional death benefit
(b) the enhanced death benefit
SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SP Jennison International Growth Portfolio (a) $121 $194 $265 $416
(b) 123 200 275 435
------------------------------------------------------------------------------------------------------
SP Strategic Partners Focused Growth Portfolio (a) 118 187 254 394
(b) 121 193 264 414
</TABLE>
<TABLE>
<CAPTION>
You would pay the following expenses on a $1,000 investment, assuming a 5% annual return on your money
if your Contract is not surrendered or if you apply your Contract value to an Annuity Option for
Contracts with:
(a) the traditional death benefit
(b) the enhanced death benefit
SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SP Jennison International Growth Portfolio (a) $36 $109 $185 $386
(b) 38 115 195 405
------------------------------------------------------------------------------------------------------
SP Strategic Partners Focused Growth Portfolio (a) 33 102 174 364
(b) 36 108 184 384
SEE THE ATTACHED FUND PROSPECTUSES FOR ADDITIONAL INFORMATION REGARDING THE NEW PORTFOLIOS.
</TABLE>
<TABLE>
<CAPTION>
4. The following Accumulation Unit values for the period ended September 30, 2000 are added to the
prospectus:
(NUMBER OF UNITS IN THOUSANDS) PERIOD FROM INCEPTION (05/01/2000) TO SEPTEMBER 30, 2000
TRADITIONAL ENHANCED
DEATH BENEFIT DEATH BENEFIT
VARIABLE OPTIONS: OPTION OPTION
-------------------------------------------------------------------------------------------------------
<S> <C> <C>
AIM V.I. CAPITAL APPRECIATION
Unit value at beginning of period $10.202 $10.197
Unit value at end of period $11.518 $11.502
Number of units outstanding at end of period 199 50
AIM V.I. GROWTH
Unit value at beginning of period $11.240 $11.223
Unit value at end of period $11.192 $11.166
Number of units outstanding at end of period 99 76
AIM V.I. INTERNATIONAL EQUITY
Unit value at beginning of period $9.709 $9.704
Unit value at end of period $8.817 $8.805
Number of units outstanding at end of period 94 -
AIM V.I. VALUE
Unit value at beginning of period $10.235 $10.230
Unit value at end of period $9.477 $9.464
Number of units outstanding at end of period 128 46
ALGER AMERICAN GROWTH
Unit value at beginning of period $10.884 $10.868
Unit value at end of period $10.774 $10.749
Number of units outstanding at end of period 187 43
ALGER AMERICAN LEVERAGED ALLCAP
Unit value at beginning of period $11.450 $11.432
Unit value at end of period $11.561 $11.535
Number of units outstanding at end of period 103 32
ALGER AMERICAN MIDCAP GROWTH
Unit value at beginning of period $11.032 $11.027
Unit value at end of period $12.023 $12.007
Number of units outstanding at end of period 64 61
ALGER AMERICAN SMALL CAPITALIZATION
Unit value at beginning of period $9.362 $9.358
Unit value at end of period $9.135 $9.123
Number of units outstanding at end of period 14 12
DAVIS VA FINANCIAL
Unit value at beginning of period $10.401 $10.395
Unit value at end of period $12.796 $12.779
Number of units outstanding at end of period 12 27
DAVIS VA REAL ESTATE
Unit value at beginning of period $11.064 $11.058
Unit value at end of period $11.934 $11.918
Number of units outstanding at end of period - 8
DAVIS VA VALUE
Unit value at beginning of period $10.626 $10.621
Unit value at end of period $10.819 $10.804
Number of units outstanding at end of period 41 32
FRANKLIN GROWTH AND INCOME SECURITIES
Unit value at beginning of period $26.312 $26.242
Unit value at end of period $29.247 $29.145
Number of units outstanding at end of period 5 4
FRANKLIN RISING DIVIDENDS SECURITIES
Unit value at beginning of period $19.723 $19.671
Unit value at end of period $19.829 $19.760
Number of units outstanding at end of period - 3
FRANKLIN SMALL CAP
Unit value at beginning of period $27.636 $27.563
Unit value at end of period $30.067 $29.963
Number of units outstanding at end of period 45 14
FRANKLIN U.S. GOVERNMENT
Unit value at beginning of period $18.995 $18.944
Unit value at end of period $19.998 $19.929
Number of units outstanding at end of period 41 1
J.P. MORGAN INTERNATIONAL OPPORTUNITIES
Unit value at beginning of period $9.755 $9.750
Unit value at end of period $9.392 $9.380
Number of units outstanding at end of period 3 7
J.P. MORGAN U.S. DISCIPLINED EQUITY
Unit value at beginning of period $10.086 $10.081
Unit value at end of period $10.093 $10.080
Number of units outstanding at end of period 23 18
MUTUAL DISCOVERY SECURITIES
Unit value at beginning of period $14.508 $14.469
Unit value at end of period $14.668 $14.618
Number of units outstanding at end of period4 4 -
MUTUAL SHARES SECURITIES
Unit value at beginning of period $13.288 $13.253
Unit value at end of period $14.120 $14.071
Number of units outstanding at end of period 1 4
OPPENHEIMER GLOBAL SECURITIES
Unit value at beginning of period $9.272 $9.267
Unit value at end of period $9.308 $9.295
Number of units outstanding at end of period 160 25
OPPENHEIMER HIGH INCOME
Unit value at beginning of period $8.830 $8.826
Unit value at end of period $8.966 $8.954
Number of units outstanding at end of period 66 1
OPPENHEIMER MAIN STREET GROWTH & INCOME
Unit value at beginning of period $9.586 $9.581
Unit value at end of period $9.908 $9.895
Number of units outstanding at end of period 229 47
PIMCO VIT HIGH YIELD BOND
Unit value at beginning of period $9.586 $9.581
Unit value at end of period $9.679 $9.666
Number of units outstanding at end of period 1 -
PIMCO VIT STOCKSPLUS GROWTH AND INCOME
Unit value at beginning of period $10.028 $10.022
Unit value at end of period $10.064 $10.051
Number of units outstanding at end of period 20 17
PIMCO VIT TOTAL RETURN BOND
Unit value at beginning of period $9.895 $9.890
Unit value at end of period $10.296 $10.283
Number of units outstanding at end of period 89 3
SELIGMAN GLOBAL TECHNOLOGY
Unit value at beginning of period $11.143 $11.138
Unit value at end of period $9.645 $9.632
Number of units outstanding at end of period 114 74
SELIGMAN SMALL-CAP VALUE
Unit value at beginning of period $11.100 $11.034
Unit value at end of period $12.338 $12.322
Number of units outstanding at end of period 56 5
TEMPLETON DEVELOPING MARKETS SECURITIES
Unit value at beginning of period $10.324 $10.296
Unit value at end of period $9.242 $9.211
Number of units outstanding at end of period 6 -
TEMPLETON GROWTH SECURITIES
Unit value at beginning of period $18.583 $18.534
Unit value at end of period $18.603 $18.538
Number of units outstanding at end of period 4 6
TEMPLETON PACIFIC GROWTH SECURITIES
Unit value at beginning of period $9.775 $9.749
Unit value at end of period $8.755 $8.725
Number of units outstanding at end of period - 1
USALLIANZ VIP DIVERSIFIED ASSETS
Unit value at beginning of period $10.118 $10.108
Unit value at end of period $10.423 $10.404
Number of units outstanding at end of period 1 0
USALLIANZ VIP FIXED INCOME
Unit value at beginning of period $9.739 $9.730
Unit value at end of period $10.311 $10.293
Number of units outstanding at end of period - 1
USALLIANZ VIP GLOBAL OPPORTUNITIES
Unit value at beginning of period $9.858 $9.853
Unit value at end of period $9.120 $9.108
Number of units outstanding at end of period 2 1
USALLIANZ VIP GROWTH
Unit value at beginning of period $10.659 $10.649
Unit value at end of period $10.589 $10.570
Number of units outstanding at end of period 1 8
USALLIANZ VIP MONEY MARKET FUND
Unit value at beginning of period $10.089 $10.084
Unit value at end of period $10.243 $10.229
Number of units outstanding at end of period 525 64
VAN KAMPEN LIT ENTERPRISE
Unit value at beginning of period $10.390 $10.385
Unit value at end of period $10.527 $10.513
Number of units outstanding at end of period 48 14
VANKAMPEN LIT GROWTH & INCOME
Unit value at beginning of period $10.645 $10.639
Unit value at end of period $11.722 $11.706
Number of units outstanding at end of period 63 -
<FN>
Class II shares of the SP Jennison International Growth Portfolio and SP Strategic Partners Focused
Growth Portfolio commenced operations as of the date of this supplement, December 15, 2000, therefore no
Accumulation Units are shown for these Sub-Accounts.
</FN>
5. The prospectus and statement of additional information are dated December 15, 2000.
</TABLE>
<PAGE>
PART B
PART B WAS FILED IN REGISTRANT'S PRE-EFFECTIVE AMENDMENT NO. 1 TO FORM N-4/A ON
APRIL 13, 2000 AND IS INCORPORATED HEREIN BY REFERENCE.
<TABLE>
<CAPTION>
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
ALLIANZ LIFE VARIABLE ACCOUNT B
USALLIANZ REWARDS TM
FLEXIBLE PREMIUM VARIABLE ANNUITY
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION
DATED DECEMBER 15, 2000
1. The tables in the SAI are replaced with the following tables which provide performance data as of September 30,
2000.
Charts A and B below reflect Accumulation Unit performance since separate account inception. Charts C and D show
Accumulation Unit performance which assumes that the Accumulation Units were invested in each of the Portfolios
from the fund inception dates listed on the table. Charts A and C are for Contracts with the traditional death
benefit and Charts B and D are for Contracts with the enhanced death benefit. Column I represents performance
figures for the Accumulation Units which reflect the mortality and expense risk charge, administrative charge, the
contract maintenance charge, the operating expenses of the Portfolios and assumes that you make a withdrawal at
the end of the period (therefore the contingent deferred sales charge is reflected). The performance figures in
Column II represent performance figures for the Accumulation Units which reflect the deduction of the mortality
and expense risk charge, administrative charge, and the operating expenses of the Portfolios. Past performance
does not guarantee future results.
CHART A - CONTRACTS WITH TRADITIONAL DEATH BENEFIT
--------------------------------------------------
Total Return for the periods ended September 30, 2000: ACTUAL
COLUMN I COLUMN II
--------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT
INCEPTION ONE THREE FIVE TEN SINCE ONE THREE FIVE TEN SINCE
VARIABLE OPTION DATE YEAR YEAR YEAR YEAR INCEPTION YEAR YEAR YEAR YEAR INCEPTION
IN PORTFOLIO
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AIM VI Capital
Appreciation* 2/1/2000 NA NA NA NA 5.30% NA NA NA NA 13.05%
AIM VI Growth* 11/11/1999 NA NA NA NA 4.17% NA NA NA NA 11.92%
AIM VI International
Equity* 2/1/2000 NA NA NA NA -20.41% NA NA NA NA -12.66%
AIM VI Value* 2/1/2000 NA NA NA NA -13.98% NA NA NA NA -6.23%
Alger American Growth* 11/11/1999 NA NA NA NA -0.01% NA NA NA NA 7.74%
Alger American Leveraged
AllCap* 11/11/1999 NA NA NA NA 7.86% NA NA NA NA 15.61%
Alger American MidCap
Growth* 2/1/2000 NA NA NA NA 9.86% NA NA NA NA 17.61%
Alger American Small
Capitalization* 2/1/2000 NA NA NA NA -18.13% NA NA NA NA -10.38%
Davis VA Financial* 2/1/2000 NA NA NA NA 20.36% NA NA NA NA 28.11%
Davis VA Real Estate* 2/1/2000 NA NA NA NA 11.32% NA NA NA NA 19.07%
Davis VA Value* 2/1/2000 NA NA NA NA 0.12% NA NA NA NA 7.87%
Franklin Growth and
Income Securities 1/24/1989 2.62% 5.66% 11.98% 12.21% 9.54% 10.37% 7.99% 12.96% 12.37% 9.61%
Franklin Rising Dividends
Securities 1/27/1992 -5.52% -2.01% 10.10% NA 7.89% 2.23% 0.68% 11.14% NA 8.20%
Franklin Small Cap 11/1/1995 61.74% 21.08% NA NA 24.39% 69.49% 22.91% NA NA 25.09%
Franklin U.S.
Government 3/14/1989 -2.93% 2.67% 3.99% 6.22% 6.11% 4.82% 5.13% 5.28% 6.45% 6.18%
J.P. Morgan International
Opportunities* 2/1/2000 NA NA NA NA -13.97% NA NA NA NA -6.22%
J.P. Morgan U.S.
Disciplined Equity* 2/1/2000 NA NA NA NA -7.85% NA NA NA NA -0.10%
Mutual Discovery
Securities 11/8/1996 14.19% 3.99% NA NA 8.73% 21.94% 6.40% NA NA 10.33%
Mutual Shares
Securities 11/8/1996 6.64% 3.31% NA NA 7.62% 14.39% 5.75% NA NA 9.26%
Oppenheimer Global
Securities/VA* 2/1/2000 NA NA NA NA -16.50% NA NA NA NA -8.75%
Oppenheimer High
Income/VA* 2/1/2000 NA NA NA NA -18.09% NA NA NA NA -10.34%
Oppenheimer Main Street
Growth & Income/VA* 2/1/2000 NA NA NA NA -9.79% NA NA NA NA -2.04%
PIMCO VIT High Yield
Bond* 2/1/2000 NA NA NA NA -10.96% NA NA NA NA -3.21%
PIMCO VIT StocksPLUS
Growth & Income* 2/1/2000 NA NA NA NA -8.35% NA NA NA NA -0.60%
PIMCO VIT Total Return
Bond* 2/1/2000 NA NA NA NA -4.12% NA NA NA NA 3.63%
Seligman Global
Technology* 2/1/2000 NA NA NA NA -13.48% NA NA NA NA -5.73%
Seligman Small-Cap
Value* 2/1/2000 NA NA NA NA 13.92% NA NA NA NA 21.67%
Templeton Developing
Markets Securities 3/15/1994 -39.80% -15.26% -2.92% NA -2.20% -32.05%-11.72% -1.25% NA -1.20%
Templeton Growth
Securities 3/15/1994 -2.24% 2.26% 9.36% NA 9.36% 5.51% 4.74% 10.43% NA 9.94%
Templeton Pacific Growth
Securities 1/27/1992 -21.04% -16.16% -10.48% NA -2.10% -13.29%-12.53% -8.21% NA -1.52%
USAllianz VIP Diversified
Assets* 11/11/1999 NA NA NA NA -3.52% NA NA NA NA 4.23%
USAllianz VIP Fixed
Income* 11/11/1999 NA NA NA NA -4.64% NA NA NA NA 3.11%
USAllianz VIP Global
Opportunities* 2/1/2000 NA NA NA NA -16.55% NA NA NA NA -8.80%
USAllianz VIP Growth*+ 11/11/1999 NA NA NA NA -1.86% NA NA NA NA 5.89%
USAllianz VIP Money
Market* 2/1/2000 3.32% * * * * * * Seven Day Effective Yield * * * * * *
Van Kampen LIT
Enterprise* 2/1/2000 NA NA NA NA -4.36% NA NA NA NA 3.39%
Van Kampen LIT Growth
& Income* 2/1/2000 NA NA NA NA 8.54% NA NA NA NA 16.29%
<FN>
+ Calculated with waiver of fees
* For funds which have existed less than one year, standard cumulative total returns since inception are shown.
Class II shares of the SP Jennison International Growth Portfolio and SP Strategic Partners Focused Growth Portfolio
commenced operations as of the date of this supplement, December 15, 2000, therefore no performance is shown for these
Variable Options.
</FN>
</TABLE>
<TABLE>
<CAPTION>
CHART B - CONTRACTS WITH ENHANCED DEATH BENEFIT
-----------------------------------------------
Total Return for the periods ended September 30, 2000: ACTUAL
COLUMN I COLUMN II
--------------------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT
INCEPTION ONE THREE FIVE TEN SINCE ONE THREE FIVE TEN SINCE
VARIABLE OPTION DATE YEAR YEAR YEAR YEAR INCEPTION YEAR YEAR YEAR YEAR INCEPTION
IN PORTFOLIO
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AIM VI Capital
Appreciation* 2/1/2000 NA NA NA NA 5.15% NA NA NA NA 12.90%
AIM VI Growth* 11/11/1999 NA NA NA NA 3.91% NA NA NA NA 11.66%
AIM VI International
Equity* 2/1/2000 NA NA NA NA -20.53% NA NA NA NA -12.78%
AIM VI Value* 2/1/2000 NA NA NA NA -14.11% NA NA NA NA -6.36%
Alger American Growth* 11/11/1999 NA NA NA NA -0.26% NA NA NA NA 7.49%
Alger American Leveraged
AllCap* 11/11/1999 NA NA NA NA 7.60% NA NA NA NA 15.35%
Alger American MidCap
Growth* 2/1/2000 NA NA NA NA 9.70% NA NA NA NA 17.45%
Alger American Small
Capitalization* 2/1/2000 NA NA NA NA -18.25% NA NA NA NA -10.50%
Davis VA Financial* 2/1/2000 NA NA NA NA 20.19% NA NA NA NA 27.94%
Davis VA Real Estate* 2/1/2000 NA NA NA NA 11.16% NA NA NA NA 18.91%
Davis VA Value* 2/1/2000 NA NA NA NA -0.02% NA NA NA NA 7.73%
Franklin Growth and
Income Securities 1/24/1989 2.53% 6.17% 12.20% 12.20% 9.51% 10.28% 8.48% 13.17% 12.36% 9.58%
Franklin Rising Dividends
Securities 1/27/1992 -5.60% -1.74% 10.19% NA 7.85% 2.15% 0.94% 11.22% NA 8.16%
Franklin Small Cap 11/1/1995 61.60% 21.09% NA NA 24.30% 69.35% 22.92% NA NA 25.00%
Franklin U.S.
Government 3/14/1989 -3.02% 3.17% 4.20% 6.21% 6.07% 4.73% 5.60% 5.49% 6.44% 6.15%
J.P. Morgan International
Opportunities* 2/1/2000 NA NA NA NA -14.09% NA NA NA NA -6.34%
J.P. Morgan U.S.
Disciplined Equity* 2/1/2000 NA NA NA NA -7.98% NA NA NA NA -0.23%
Mutual Discovery
Securities 11/8/1996 14.09% 3.93% NA NA 8.63% 21.84% 6.34% NA NA 10.24%
Mutual Shares
Securities 11/8/1996 6.54% 3.25% NA NA 7.51% 14.29% 5.69% NA NA 9.16%
Oppenheimer Global
Securities/VA* 2/1/2000 NA NA NA NA -16.62% NA NA NA NA -8.87%
Oppenheimer High
Income/VA* 2/1/2000 NA NA NA NA -18.21% NA NA NA NA -10.46%
Oppenheimer Main Street
Growth & Income/VA* 2/1/2000 NA NA NA NA -9.92% NA NA NA NA -2.17%
PIMCO VIT High Yield
Bond* 2/1/2000 NA NA NA NA -11.08% NA NA NA NA -3.33%
PIMCO VIT StocksPLUS
Growth & Income* 2/1/2000 NA NA NA NA -8.48% NA NA NA NA -0.73%
PIMCO VIT Total Return
Bond* 2/1/2000 NA NA NA NA -4.26% NA NA NA NA 3.49%
Seligman Global
Technology* 2/1/2000 NA NA NA NA -13.60% NA NA NA NA -5.85%
Seligman Small-Cap
Value* 2/1/2000 NA NA NA NA 13.76% NA NA NA NA 21.51%
Templeton Developing
Markets Securities 3/15/1994 -39.86% -15.15% -2.93% NA -2.26% -32.11%-11.61% -1.26% NA -1.25%
Templeton Growth
Securities 3/15/1994 -2.32% 2.39% 9.36% NA 9.30% 5.43% 4.87% 10.43% NA 9.88%
Templeton Pacific Growth
Securities 1/27/1992 -21.11% -15.91% -10.41% NA -2.14% -13.36%-12.31% -8.14% NA -1.56%
USAllianz VIP Diversified
Assets* 11/11/1999 NA NA NA NA -3.71% NA NA NA NA 4.04%
USAllianz VIP Fixed
Income* 11/11/1999 NA NA NA NA -4.82% NA NA NA NA 2.93%
USAllianz VIP Global
Opportunities* 2/1/2000 NA NA NA NA -16.67% NA NA NA NA -8.92%
USAllianz VIP Growth*+ 11/11/1999 NA NA NA NA -2.05% NA NA NA NA 5.70%
USAllianz VIP Money
Market* 2/1/2000 3.12% * * * * * * Seven Day Effective Yield * * * * * *
Van Kampen LIT
Enterprise* 2/1/2000 NA NA NA NA -4.49% NA NA NA NA 3.26%
Van Kampen LIT Growth
& Income* 2/1/2000 NA NA NA NA 8.39% NA NA NA NA 16.14%
<FN>
+ Calculated with waiver of fees
* For funds which have existed less than one year, standard cumulative total returns since inception are shown.
Class II shares of the SP Jennison International Growth Portfolio and SP Strategic Partners Focused Growth Portfolio
commenced operations as of the date of this supplement, December 15, 2000, therefore no performance is shown for these
Variable Options.
</FN>
</TABLE>
<TABLE>
<CAPTION>
CHART C - CONTRACTS WITH TRADITIONAL DEATH BENEFIT
--------------------------------------------------
Total Return for the periods ended September 30, 2000: HYPOTHETICAL
COLUMN I COLUMN II
--------------------------------------------------------------------------------------------------------------------
PORTFOLIO
INCEPTION ONE THREE FIVE TEN SINCE ONE THREE FIVE TEN SINCE
VARIABLE OPTION DATE YEAR YEAR YEAR YEAR INCEPTION YEAR YEAR YEAR YEAR INCEPTION
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AIM VI Capital
Appreciation 5/5/1993 45.10% 18.00% 17.67% NA 19.76% 52.85% 19.91% 18.50% NA 20.06%
AIM VI Growth 5/5/1993 15.51% 18.38% 19.54% NA 18.45% 23.26% 20.27% 20.32% NA 18.76%
AIM VI International
Equity 5/5/1993 7.99% 7.07% 11.55% NA 11.55% 15.74% 9.35% 12.54% NA 11.98%
AIM VI Value 5/5/1993 0.51% 12.56% 14.82% NA 17.12% 8.26% 14.63% 15.71% NA 17.45%
Alger American Growth 1/9/1989 11.80% 20.23% 19.05% 21.72% 19.42% 19.55% 22.05% 19.84% 21.82% 19.47%
Alger American Leveraged
AllCap 1/25/1995 25.00% 32.90% 26.17% NA 35.71% 32.75% 34.42% 26.81% NA 36.06%
Alger American MidCap
Growth 5/3/1993 42.47% 20.80% 17.74% NA 22.92% 50.22% 22.62% 18.57% NA 23.17%
Alger American Small
Capitalization 9/21/1988 9.28% 8.06% 6.96% 15.96% 16.50% 17.03% 10.31% 8.14% 16.08% 16.54%
Davis VA Financial 7/1/1999 20.96% NA NA NA 5.03% 28.71% NA NA NA 11.19%
Davis VA Real Estate 7/1/1999 8.03% NA NA NA -3.55% 15.78% NA NA NA 2.73%
Davis VA Value 7/1/1999 11.39% NA NA NA 0.66% 19.14% NA NA NA 6.88%
Franklin Growth and
Income Securities 1/24/1989 2.62% 3.83% 10.84% 11.66% 8.99% 10.37% 6.24% 11.86% 11.82% 9.16%
Franklin Rising Dividends
Securities 1/27/1992 -5.52% -3.22% 9.31% NA 7.40% 2.23% -0.47% 10.38% NA 7.78%
Franklin Small Cap 11/1/1995 61.74% 20.41% NA NA 23.98% 69.49% 22.26% NA NA 24.68%
Franklin U.S.
Government 3/14/1989 -2.93% 0.88% 2.91% 5.69% 5.66% 4.82% 3.42% 4.26% 5.93% 5.73%
J.P. Morgan International
Opportunities 1/3/1995 -4.76% 1.65% 6.71% NA 6.98% 2.99% 4.17% 7.89% NA 7.96%
J.P. Morgan U.S.
Disciplined Equity 1/3/1995 -4.95% 6.51% 14.26% NA 17.11% 2.80% 8.81% 15.16% NA 17.76%
Mutual Discovery
Securities 11/8/1996 14.19% 3.59% NA NA 8.41% 21.94% 6.02% NA NA 10.03%
Mutual Shares
Securities 11/8/1996 6.64% 2.91% NA NA 7.30% 14.39% 5.37% NA NA 8.96%
Oppenheimer Global
Securities/VA 11/12/1990 38.92% 20.48% 19.50% NA 14.35% 46.67% 22.31% 20.28% NA 14.51%
Oppenheimer High
Income/VA 4/30/1986 -7.18% -2.12% 4.25% 10.21% 9.18% 0.57% 0.58% 5.53% 10.37% 9.24%
Oppenheimer Main Street
Growth & Income/VA 7/5/1995 3.52% 5.69% 18.41% NA 19.37% 11.27% 8.03% 19.20% NA 20.00%
PIMCO VIT High Yield
Bond 4/30/1998 -6.48% NA NA NA -2.58% 1.27% NA NA NA 0.74%
PIMCO VIT StocksPLUS
Growth & Income 12/31/1997 1.23% NA NA NA 12.04% 8.98% NA NA NA 14.37%
PIMCO VIT Total Return
Bond 12/31/1997 -2.93% NA NA NA 0.57% 4.82% NA NA NA 3.36%
Seligman Global
Technology 5/1/1996 39.67% 34.26% NA NA 30.32% 47.42% 35.75% NA NA 31.09%
Seligman Small-Cap Value 5/1/1998 17.67% NA NA NA 8.29% 25.42% NA NA NA 11.18%
Templeton Developing
Markets Securities 3/15/1994 -14.39% -16.63% -3.82% NA -3.05% -6.64%-12.96% -2.09% NA -1.84%
Templeton Growth
Securities 3/15/1994 -2.24% 1.38% 8.81% NA 8.86% 5.51% 3.91% 9.90% NA 9.54%
Templeton Pacific Growth
Securities 1/27/1992 -21.04% -17.25% -11.17% NA -2.63% -13.29%-13.53% -8.84% NA -1.91%
USAllianz VIP Diversified
Assets* 11/12/1999 NA NA NA NA -5.59% NA NA NA NA 2.16%
USAllianz VIP Fixed
Income* 11/12/1999 NA NA NA NA -7.60% NA NA NA NA 0.15%
USAllianz VIP Global
Opportunities* 2/1/2000 NA NA NA NA -16.55% NA NA NA NA -8.80%
USAllianz VIP Growth*+ 11/9/1999 NA NA NA NA -2.97% NA NA NA NA 4.78%
USAllianz VIP Money
Market* 2/1/2000 3.32% * * * * * * Seven Day Effective Yield * * * * * *
Van Kampen LIT
Enterprise 4/7/1986 5.99% 8.13% 16.48% 15.87% 10.72% 13.74% 10.37% 17.32% 15.99% 10.79%
Van Kampen LIT Growth
& Income 12/23/1996 9.43% 9.03% NA NA 13.53% 17.18% 11.23% NA NA 15.02%
<FN>
+ Calculated with waiver of fees
* For funds which have existed less than one year, non-standard cumulative total returns since inception are shown.
Class II shares of the SP Jennison International Growth Portfolio and SP Strategic Partners Focused Growth Portfolio
commenced operations as of the date of this supplement, December 15, 2000, therefore no performance is shown for these
Variable Options.
</FN>
</TABLE>
<TABLE>
<CAPTION>
CHART D - CONTRACTS WITH ENHANCED DEATH BENEFIT
-----------------------------------------------
Total Return for the periods ended September 30, 2000: HYPOTHETICAL
COLUMN I COLUMN II
--------------------------------------------------------------------------------------------------------------------
PORTFOLIO
INCEPTION ONE THREE FIVE TEN SINCE ONE THREE FIVE TEN SINCE
VARIABLE OPTION DATE YEAR YEAR YEAR YEAR INCEPTION YEAR YEAR YEAR YEAR INCEPTION
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AIM VI Capital
Appreciation 5/5/1993 44.80% 17.75% 17.43% NA 19.52% 52.55% 19.67% 18.26% NA 19.82%
AIM VI Growth 5/5/1993 15.26% 18.14% 19.30% NA 18.21% 23.01% 20.03% 20.08% NA 18.53%
AIM VI International
Equity 5/5/1993 7.76% 6.84% 11.32% NA 11.32% 15.51% 9.13% 12.32% NA 11.76%
AIM VI Value 5/5/1993 0.29% 12.32% 14.58% NA 16.88% 8.04% 14.40% 15.48% NA 17.22%
Alger American Growth 1/9/1989 11.56% 19.98% 18.81% 21.48% 19.18% 19.31% 21.81% 19.60% 21.57% 19.23%
Alger American Leveraged
AllCap 1/25/1995 24.73% 32.63% 25.91% NA 35.44% 32.48% 34.15% 26.55% NA 35.79%
Alger American MidCap
Growth 5/3/1993 42.17% 20.55% 17.50% NA 22.67% 49.92% 22.38% 18.33% NA 22.93%
Alger American Small
Capitalization 9/21/1988 9.04% 7.83% 6.74% 15.73% 16.27% 16.79% 10.09% 7.92% 15.85% 16.31%
Davis VA Financial 7/1/1999 20.70% NA NA NA 4.81% 28.45% NA NA NA 10.97%
Davis VA Real Estate 7/1/1999 7.79% NA NA NA -3.76% 15.54% NA NA NA 2.52%
Davis VA Value 7/1/1999 11.15% NA NA NA 0.45% 18.90% NA NA NA 6.66%
Franklin Growth and
Income Securities 1/24/1989 2.40% 3.61% 10.61% 11.43% 8.87% 10.15% 6.03% 11.63% 11.60% 8.94%
Franklin Rising Dividends
Securities 1/27/1992 -5.72% -3.43% 9.08% NA 7.18% 2.03% -0.67% 10.16% NA 7.56%
Franklin Small Cap 11/1/1995 61.40% 20.16% NA NA 23.73% 69.15% 22.01% NA NA 24.43%
Franklin U.S.
Government 3/14/1989 -3.14% 0.67% 2.70% 5.48% 5.45% 4.61% 3.22% 4.05% 5.72% 5.52%
J.P. Morgan International
Opportunities 1/3/1995 -4.96% 1.43% 6.49% NA 6.76% 2.79% 3.96% 7.67% NA 7.74%
J.P. Morgan U.S.
Disciplined Equity 1/3/1995 -5.15% 6.29% 14.02% NA 16.87% 2.60% 8.59% 14.93% NA 17.52%
Mutual Discovery
Securities 11/8/1996 13.94% 3.37% NA NA 8.19% 21.69% 5.81% NA NA 9.81%
Mutual Shares
Securities 11/8/1996 6.41% 2.69% NA NA 7.07% 14.16% 5.16% NA NA 8.74%
Oppenheimer Global
Securities/VA 11/12/1990 38.63% 20.23% 19.25% NA 14.12% 46.38% 22.06% 20.04% NA 14.28%
Oppenheimer High
Income/VA 4/30/1986 -7.38% -2.33% 4.03% 9.98% 8.96% 0.37% 0.38% 5.32% 10.15% 9.02%
Oppenheimer Main Street
Growth & Income/VA 7/5/1995 3.29% 5.47% 18.17% NA 19.13% 11.04% 7.81% 18.96% NA 19.76%
PIMCO VIT High Yield
Bond 4/30/1998 -6.69% NA NA NA -2.79% 1.06% NA NA NA 0.54%
PIMCO VIT StocksPLUS
Growth & Income 12/31/1997 1.02% NA NA NA 11.80% 8.77% NA NA NA 14.14%
PIMCO VIT Total Return
Bond 12/31/1997 -3.14% NA NA NA 0.35% 4.61% NA NA NA 3.15%
Seligman Global
Technology 5/1/1996 39.38% 33.98% NA NA 30.05% 47.13% 35.48% NA NA 30.83%
Seligman Small-Cap Value 5/1/1998 17.42% NA NA NA 8.06% 25.17% NA NA NA 10.96%
Templeton Developing
Markets Securities 3/15/1994 -14.57% -16.82% -4.03% NA -3.26% -6.82%-13.14% -2.28% NA -2.03%
Templeton Growth
Securities 3/15/1994 -2.45% 1.16% 8.59% NA 8.64% 5.30% 3.70% 9.68% NA 9.32%
Templeton Pacific Growth
Securities 1/27/1992 -21.21% -17.43% -11.38% NA -2.83% -13.46%-13.70% -9.02% NA -2.10%
USAllianz VIP Diversified
Assets* 11/12/1999 NA NA NA NA -5.77% NA NA NA NA 1.98%
USAllianz VIP Fixed
Income* 11/12/1999 NA NA NA NA -7.78% NA NA NA NA -0.03%
USAllianz VIP Global
Opportunities* 2/1/2000 NA NA NA NA -16.67% NA NA NA NA -8.92%
USAllianz VIP Growth*+ 11/9/1999 NA NA NA NA -3.16% NA NA NA NA 4.59%
USAllianz VIP Money
Market* 2/1/2000 3.12% * * * * * * Seven Day Effective Yield * * * * * *
Van Kampen LIT
Enterprise 4/7/1986 5.76% 7.90% 16.23% 15.63% 10.50% 13.51% 10.15% 17.08% 15.76% 10.57%
Van Kampen LIT Growth
& Income 12/23/1996 9.20% 8.80% NA NA 13.30% 16.95% 11.01% NA NA 14.79%
<FN>
+ Calculated with waiver of fees
* For funds which have existed less than one year, non-standard cumulative total returns since inception are shown.
Class II shares of the SP Jennison International Growth Portfolio and SP Strategic Partners Focused Growth Portfolio
commenced operations as of the date of this supplement, December 15, 2000, therefore no performance is shown for these
Variable Options.
</FN>
2. The following financial statements are added to the Statement of Additional Information:
</TABLE>
ALLIANZ LIFE VARIABLE ACCOUNT B
of
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements
September 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
AIM V.I. AIM V.I.
CAPITAL APPRECIATION AIM V.I. INTERNATIONAL EQUITY AIM V.I.
FUND GROWTH FUND FUND VALUE FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C>
Investments at net asset value $4,081 - 56,344 - 1,627 - 2,617 -
---------------------------------------------------------------------------------------------------------------------------
Total assets 4,081 - 56,344 - 1,627 - 2,617 -
Liabilities:
Accrued mortality and expense risk and administrative charges:
USAllianz Alterity Traditional 1 - 5 - 1 - (1) -
USAllianz Alterity Enhanced 1 - 1 - - - 1 -
USAllianz Alterity Optional 1 - 2 - 1 - 2 -
USAllianz Rewards Traditional 4 - 2 - - - 3 -
USAllianz Rewards Enhanced (2) - (2) - - - 1 -
Valuemark II & III - - 7 - - - - -
Valuemark IV - - 6 - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total liabilities 5 - 21 - 2 - 6 -
Net assets $4,076 - 56,323 - 1,625 - 2,611 -
---------------------------------------------------------------------------------------------------------------------------
Contract owners' equity:
Contracts in accumulation period:
USAllianz Alterity Traditional (note 7) $578 - 1,137 - 326 - 358 -
USAllianz Alterity Enhanced (note 7) 132 - 273 - 29 - 179 -
USAllianz Alterity Optional (note 7) 503 - 460 - 218 - 430 -
USAllianz Rewards Traditional (note 8) 2,287 - 1,112 - 830 - 1,213 -
USAllianz Rewards Enhanced (note 8) 576 - 853 - 222 - 431 -
Valuemark II and III (note 5) - - 29,006 - - - - -
Valuemark IV (note 5) - - 23,311 - - - - -
Valuemark Charter Traditional (note 6) - - - - - - - -
Valuemark Charter Enhanced (note 6) - - - - - - - -
Contracts in annuity payment period (note 2) - - 171 - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total contract owners' equity $4,076 - 56,323 - 1,625 - 2,611 -
---------------------------------------------------------------------------------------------------------------------------
Investment Shares 100 - 1,708 - 67 - 84 -
Investments at Cost $4,039 - 57,343 - 1,757 - 2,809 -
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
ALGER ALGER ALGER AMERICAN
ALGER AMERICAN AMERICAN SMALL CAPITALIZATION
AMERICAN GROWTH FUNDLEVERAGED ALLCAP FUNDMIDCAP GROWTH FUND PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C>
Investments at net asset value $40,836 - 26,156 - 2,609 - 506 -
---------------------------------------------------------------------------------------------------------------------------
Total assets 40,836 - 26,156 - 2,609 - 506 -
Liabilities:
Accrued mortality and expense risk and administrative charges:
USAllianz Alterity Traditional - - (1) - 2 - - -
USAllianz Alterity Enhanced 1 - 1 - 1 - - -
USAllianz Alterity Optional 1 - (1) - (2) - (2) -
USAllianz Rewards Traditional 4 - 2 - 2 - - -
USAllianz Rewards Enhanced (2) - 1 - 2 - (3) -
Valuemark II & III (3) - 6 - - - - -
Valuemark IV (6) - 6 - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total liabilities (5) - 14 - 5 - (5) -
---------------------------------------------------------------------------------------------------------------------------
Net assets $40,841 - 26,142 - 2,604 - 511 -
---------------------------------------------------------------------------------------------------------------------------
Contract owners' equity:
Contracts in accumulation period:
USAllianz Alterity Traditional (note 7) $397 - 508 - 531 - 70 -
USAllianz Alterity Enhanced (note 7) 151 - 295 - 243 - 36 -
USAllianz Alterity Optional (note 7) 282 - 343 - 330 - 167 -
USAllianz Rewards Traditional (note 8) 2,014 - 1,187 - 771 - 131 -
USAllianz Rewards Enhanced (note 8) 467 - 366 - 729 - 107 -
Valuemark II and III (note 5) 21,228 - 12,236 - - - - -
Valuemark IV (note 5) 16,164 - 11,169 - - - - -
Valuemark Charter Traditional (note 6) - - - - - - - -
Valuemark Charter Enhanced (note 6) - - - - - - - -
Contracts in annuity payment period (note 2) 138 - 38 - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total contract owners' equity $40,841 - 26,142 - 2,604 - 511 -
---------------------------------------------------------------------------------------------------------------------------
Investment Shares 737 - 526 - 77 - 17 -
Investments at Cost $45,230 - 30,168 - 2,587 - 585 -
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
DAVIS VA DAVIS VA DAVIS VA FRANKLIN
FINANCIAL REAL ESTATE VALUE AGGRESSIVE GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C>
Investments at net asset value $729 - 1,248 - 1,493 - 9,897 -
---------------------------------------------------------------------------------------------------------------------------
Total assets 729 - 1,248 - 1,493 - 9,897 -
Liabilities:
Accrued mortality and expense risk and administrative charges:
USAllianz Alterity Traditional - - (1) - 1 - - -
USAllianz Alterity Enhanced (3) - - - 3 - - -
USAllianz Alterity Optional - - 2 - 2 - - -
USAllianz Rewards Traditional - - 1 - 1 - - -
USAllianz Rewards Enhanced 1 - - - 1 - - -
Valuemark II & III - - - - - - 6 -
Valuemark IV - - - - - - 6 -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total liabilities (2) - 2 - 8 - 12 -
Net assets $731 - 1,246 - 1,485 - 9,885 -
---------------------------------------------------------------------------------------------------------------------------
Contract owners' equity:
Contracts in accumulation period:
USAllianz Alterity Traditional (note 7) $223 - 119 - 151 - - -
USAllianz Alterity Enhanced (note 7) 4 - 14 - 58 - - -
USAllianz Alterity Optional (note 7) 2 - 524 - 488 - - -
USAllianz Rewards Traditional (note 8) 160 - 489 - 439 - - -
USAllianz Rewards Enhanced (note 8) 342 - 100 - 349 - - -
Valuemark II and III (note 5) - - - - - - 6,588 -
Valuemark IV (note 5) - - - - - - 3,263 -
Valuemark Charter Traditional (note 6) - - - - - - - -
Valuemark Charter Enhanced (note 6) - - - - - - - -
Contracts in annuity payment period (note 2) - - - - - - 34 -
---------------------------------------------------------------------------------------------------------------------------
Total contract owners' equity $731 - 1,246 - 1,485 - 9,885 -
---------------------------------------------------------------------------------------------------------------------------
Investment Shares 63 - 123 - 135 - 831 -
Investments at Cost $660 - 1,239 - 1,504 - 9,806 -
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
FRANKLIN FRANKLIN FRANKLIN FRANKLIN
GLOBAL COMMUNICATIONSGLOBAL HEALTH CARE GROWTH AND INCOME HIGH INCOME
SECURITIES FUND SECURITIES FUND FUND FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at net asset value $669,578 686 37,998 385 734,877 1,351 195,042 447
---------------------------------------------------------------------------------------------------------------------------
Total assets 669,578 686 37,998 385 734,877 1,351 195,042 447
Liabilities:
Accrued mortality and expense risk and administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - 1 - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 173 - 7 - 308 - 41 -
Valuemark IV 7 - 6 - 11 - 9 -
Valuemark Charter Traditional - 4 - 2 - 10 - 4
Valuemark Charter Enhanced - 4 - 1 - 6 - 1
---------------------------------------------------------------------------------------------------------------------------
Total liabilities 180 8 13 3 319 17 50 5
Net assets $669,398 678 37,985 382 734,558 1,334 194,992 442
Contract owners' equity:
Contracts in accumulation period:
USAllianz Alterity Traditional (note 7) $ - - - - - 107 - -
USAllianz Alterity Enhanced (note 7) - - - - - - - -
USAllianz Alterity Optional (note 7) - - - - - 119 - -
USAllianz Rewards Traditional (note 8) - - - - - 149 - -
USAllianz Rewards Enhanced (note 8) - - - - - 121 - -
Valuemark II and III (note 5) 611,351 - 22,938 - 588,806 - 130,094 -
Valuemark IV (note 5) 53,670 - 15,047 - 135,728 - 63,835 -
Valuemark Charter Traditional (note 6) - 402 - 241 - 388 - 373
Valuemark Charter Enhanced (note 6) - 276 - 141 - 450 - 69
Contracts in annuity payment period (note 2) 4,377 - - - 10,024 - 1,063 -
---------------------------------------------------------------------------------------------------------------------------
Total contract owners' equity $669,398 678 37,985 382 734,558 1,334 194,992 442
Investment Shares 39,809 41 2,207 22 44,270 82 20,727 48
Investments at Cost $684,414 787 26,629 281 708,383 1,343 249,185 465
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
FRANKLIN FRANKLIN FRANKLIN FRANKLIN
INCOME SECURITIES LARGE CAP GROWTH MONEY MARKET NATURAL RESOURCES
FUND SECURITIES FUND FUND SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at net asset value $621,361 1,505 446,421 1,413 251,281 12,613 43,280 84
---------------------------------------------------------------------------------------------------------------------------
Total assets 621,361 1,505 446,421 1,413 251,281 12,613 43,280 84
Liabilities:
Accrued mortality and expense risk and administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 334 - 85 - 165 - 7 -
Valuemark IV 9 - 13 - 7 - 6 -
Valuemark Charter Traditional - 17 - 12 - 89 - 1
Valuemark Charter Enhanced - 3 - 6 - - - 1
---------------------------------------------------------------------------------------------------------------------------
Total liabilities 343 20 98 18 172 89 13 2
Net assets $621,018 1,485 446,323 1,395 251,109 12,524 43,267 82
---------------------------------------------------------------------------------------------------------------------------
Contract owners' equity:
Contracts in accumulation period: $ - - - - - - - -
USAllianz Alterity Traditional (note 7) - - - - - - - -
USAllianz Alterity Enhanced (note 7) - - - - - - - -
USAllianz Alterity Optional (note 7) - - - - - - - -
USAllianz Rewards Traditional (note 8) - - - - - - - -
USAllianz Rewards Enhanced (note 8) - - - - - - - -
Valuemark II and III (note 5) 514,503 - 251,167 - 186,965 - 34,475 -
Valuemark IV (note 5) 100,150 - 186,223 - 62,209 - 8,754 -
Valuemark Charter Traditional (note 6) - 1,233 - 873 - 12,524 - 69
Valuemark Charter Enhanced (note 6) - 252 - 522 - - - 13
Contracts in annuity payment period (note 2) 6,365 - 8,933 - 1,935 - 38 -
---------------------------------------------------------------------------------------------------------------------------
Total contract owners' equity $621,018 1,485 446,323 1,395 251,109 12,524 43,267 82
---------------------------------------------------------------------------------------------------------------------------
Investment Shares 42,501 103 19,176 61 251,281 12,613 3,123 6
Investments at Cost $637,504 1,497 309,583 1,350 251,237 12,614 35,430 66
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
FRANKLIN FRANKLIN FRANKLIN FRANKLIN
REAL ESTATE RISING DIVIDENDS SECURITIESS & P 500 INDEX SMALL CAP
FUND FUND FUND FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C> <C> <C> <C>
Investments at net asset value $144,913 758 303,651 701 42,444 - 461,130 3,599
---------------------------------------------------------------------------------------------------------------------------
Total assets 144,913 758 303,651 701 42,444 - 461,130 3,599
Liabilities:
Accrued mortality and expense risk and administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - 1
USAllianz Alterity Optional - - - - - - - 1
USAllianz Rewards Traditional - - - - - - - 3
USAllianz Rewards Enhanced - - - - - - - 1
Valuemark II & III 18 - 134 - 7 - 284 -
Valuemark IV 6 - 8 - 6 - 12 -
Valuemark Charter Traditional - 6 - 6 - - - 12
Valuemark Charter Enhanced - 2 - 2 - - - 2
---------------------------------------------------------------------------------------------------------------------------
Total liabilities 24 8 142 8 13 - 296 20
Net assets $144,889 750 303,509 693 42,431 - 460,834 3,579
---------------------------------------------------------------------------------------------------------------------------
Contract owners' equity:
Contracts in accumulation period:
USAllianz Alterity Traditional (note 7) $ - - - 1 - - - 635
USAllianz Alterity Enhanced (note 7) - - - - - - - 150
USAllianz Alterity Optional (note 7) - - - 7 - - - 347
USAllianz Rewards Traditional (note 8) - - - 152 - - - 1,367
USAllianz Rewards Enhanced (note 8) - - - 53 - - - 433
Valuemark II and III (note 5) 107,885 - 237,067 - 24,723 - 283,763 -
Valuemark IV (note 5) 36,125 - 62,914 - 17,659 - 170,183 -
Valuemark Charter Traditional (note 6) - 601 - 284 - - - 395
Valuemark Charter Enhanced (note 6) - 149 - 196 - - - 252
Contracts in annuity payment period (note 2) 879 - 3,528 - 49 - 6,888 -
---------------------------------------------------------------------------------------------------------------------------
Total contract owners' equity $144,889 750 303,509 693 42,431 - 460,834 3,579
---------------------------------------------------------------------------------------------------------------------------
Investment Shares 8,626 45 25,887 60 4,050 - 17,277 135
Investments at Cost $149,918 708 349,161 726 42,215 - 298,734 3,561
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
FRANKLIN FRANKLIN FRANKLIN FRANKLIN
TECHNOLOGY SECURITIES U.S. GOVERNMENT VALUE SECURITIES ZERO COUPON
FUND FUND FUND FUND - 2000
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C> <C> <C>
Investments at net asset value $9,621 - 389,055 2,668 15,146 166 45,762 -
---------------------------------------------------------------------------------------------------------------------------
Total assets 9,621 - 389,055 2,668 15,146 166 45,762 -
---------------------------------------------------------------------------------------------------------------------------
Liabilities:
Accrued mortality and expense risk and administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - 1 - - - -
USAllianz Rewards Traditional - - - 1 - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 5 - 18 - 46 - 7 -
Valuemark IV 6 - 8 - 5 - 5 -
Valuemark Charter Traditional - - - 25 - 2 - -
Valuemark Charter Enhanced - - - 4 - - - -
---------------------------------------------------------------------------------------------------------------------------
Total liabilities 11 - 26 31 51 2 12 -
Net assets $9,610 - 389,029 2,637 15,095 164 45,750 -
---------------------------------------------------------------------------------------------------------------------------
Contract owners' equity:
Contracts in accumulation period:
USAllianz Alterity Traditional (note 7) $ - - - 53 - - - -
USAllianz Alterity Enhanced (note 7) - - - 13 - - - -
USAllianz Alterity Optional (note 7) - - - 388 - - - -
USAllianz Rewards Traditional (note 8) - - - 824 - - - -
USAllianz Rewards Enhanced (note 8) - - - 12 - - - -
Valuemark II and III (note 5) 4,987 - 320,545 - 7,694 - 41,246 -
Valuemark IV (note 5) 4,592 - 68,067 - 7,030 - 4,484 -
Valuemark Charter Traditional (note 6) - - - 935 - 140 - -
Valuemark Charter Enhanced (note 6) - - - 412 - 24 - -
Contracts in annuity payment period (note 2) 31 - 417 - 371 - 20 -
--------------------------------------------------------------------------------------------------------------------------
Total contract owners' equity $9,610 - 389,029 2,637 15,095 164 45,750 -
---------------------------------------------------------------------------------------------------------------------------
Investment Shares 791 - 30,877 212 1,670 18 3,531 -
Investments at Cost $9,201 - 402,036 2,708 13,407 150 49,094 -
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
FRANKLIN FRANKLIN J.P. MORGAN J.P. MORGAN
ZERO COUPON ZERO COUPONINTERNATIONAL OPPORTUNITIESU.S. DISCIPLINED
FUND - 2005 FUND - 2010 PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C>
Investments at net asset value $51,445 - 50,874 - 307 - 536 -
---------------------------------------------------------------------------------------------------------------------------
Total assets 51,445 - 50,874 - 307 - 536 -
Liabilities:
Accrued mortality and expense risk and administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 7 - 7 - - - - -
Valuemark IV 6 - 6 - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total liabilities 13 - 13 - - - - -
Net assets $51,432 - 50,861 - 307 - 536 -
---------------------------------------------------------------------------------------------------------------------------
Contract owners' equity:
Contracts in accumulation period:
USAllianz Alterity Traditional (note 7) $ - - - - 191 - 25 -
USAllianz Alterity Enhanced (note 7) - - - - 5 - 63 -
USAllianz Alterity Optional (note 7) - - - - 11 - 43 -
USAllianz Rewards Traditional (note 8) - - - - 32 - 228 -
USAllianz Rewards Enhanced (note 8) - - - - 68 - 177 -
Valuemark II and III (note 5) 39,157 - 35,945 - - - - -
Valuemark IV (note 5) 12,272 - 14,905 - - - - -
Valuemark Charter Traditional (note 6) - - - - - - - -
Valuemark Charter Enhanced (note 6) - - - - - - - -
Contracts in annuity payment period (note 2) 3 - 11 - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total contract owners' equity $51,432 - 50,861 - 307 - 536 -
---------------------------------------------------------------------------------------------------------------------------
Investment Shares 3,418 - 3,360 - 25 - 33 -
Investments at Cost $52,511 - 53,934 - 324 - 556 -
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
MUTUAL MUTUAL OPPENHEIMER OPPENHEIMER
DISCOVERY SECURITIES SHARES SECURITIES GLOBAL SECURITIES HIGH INCOME
FUND FUND FUND/VA FUND/VA
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C> <C> <C>
Investments at net asset value $182,151 784 367,080 2,026 2,599 - 906 -
---------------------------------------------------------------------------------------------------------------------------
Total assets 182,151 784 367,080 2,026 2,599 - 906 -
Liabilities:
Accrued mortality and expense risk and administrative charges:
USAllianz Alterity Traditional - 1 - - 1 - 2 -
USAllianz Alterity Enhanced - - - 1 - - - -
USAllianz Alterity Optional - - - - 1 - - -
USAllianz Rewards Traditional - - - - 3 - 1 -
USAllianz Rewards Enhanced - - - - (3) - - -
Valuemark II & III 219 - 274 - - - - -
Valuemark IV 10 - 15 - - - - -
Valuemark Charter Traditional - 4 - 13 - - - -
Valuemark Charter Enhanced - 2 - 4 - - - -
---------------------------------------------------------------------------------------------------------------------------
Total liabilities 229 7 289 18 2 - 3 -
Net assets $181,922 777 366,791 2,008 2,597 - 903 -
---------------------------------------------------------------------------------------------------------------------------
Contract owners' equity:
Contracts in accumulation period:
USAllianz Alterity Traditional (note 7) $ - 139 - 285 354 - 301 -
USAllianz Alterity Enhanced (note 7) - 59 - 130 185 - 2 -
USAllianz Alterity Optional (note 7) - 23 - 69 335 - - -
USAllianz Rewards Traditional (note 8) - 64 - 13 1,489 - 588 -
USAllianz Rewards Enhanced (note 8) - 9 - 56 234 - 12 -
Valuemark II and III (note 5) 71,436 - 131,182 - - - - -
Valuemark IV (note 5) 105,672 - 229,102 - - - - -
Valuemark Charter Traditional (note 6) - 255 - 1,066 - - - -
Valuemark Charter Enhanced (note 6) - 228 - 389 - - - -
Contracts in annuity payment period (note 2) 4,814 - 6,507 - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total contract owners' equity $181,922 777 366,791 2,008 2,597 - 903 -
---------------------------------------------------------------------------------------------------------------------------
Investment Shares 12,738 55 27,171 150 83 - 94 -
Investments at Cost $151,132 735 318,726 1,924 2,677 - 902 -
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
OPPENHEIMER PIMCO VIT PIMCO VIT PIMCO VIT
MAIN STREET GROWTH & HIGH YIELD BOND STOCKSPLUS GROWTH TOTAL RETURN BOND
INCOME FUND/VA PORTFOLIO AND INCOME PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C>
Investments at net asset value $3,881 - 419 - 530 - 1,236 -
---------------------------------------------------------------------------------------------------------------------------
Total assets 3,881 - 419 - 530 - 1,236 -
Liabilities:
Accrued mortality and expense risk and administrative charges:
USAllianz Alterity Traditional 5 - 2 - - - 2 -
USAllianz Alterity Enhanced - - - - - - 1 -
USAllianz Alterity Optional - - 5 - - - 1 -
USAllianz Rewards Traditional 5 - 2 - - - - -
USAllianz Rewards Enhanced (4) - - - - - - -
Valuemark II & III - - - - - - - -
Valuemark IV - - - - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total liabilities 6 - 9 - - - 4 -
Net assets $3,875 - 410 - 530 - 1,232 -
---------------------------------------------------------------------------------------------------------------------------
Contract owners' equity:
Contracts in accumulation period:
USAllianz Alterity Traditional (note 7) $877 - 97 - 68 - 167 -
USAllianz Alterity Enhanced (note 7) 98 - 39 - 7 - 22 -
USAllianz Alterity Optional (note 7) 169 - 261 - 83 - 98 -
USAllianz Rewards Traditional (note 8) 2,270 - 13 - 203 - 917 -
USAllianz Rewards Enhanced (note 8) 461 - - - 169 - 28 -
Valuemark II and III (note 5) - - - - - - - -
Valuemark IV (note 5) - - - - - - - -
Valuemark Charter Traditional (note 6) - - - - - - - -
Valuemark Charter Enhanced (note 6) - - - - - - - -
Contracts in annuity payment period (note 2) - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total contract owners' equity $3,875 - 410 - 530 - 1,232 -
---------------------------------------------------------------------------------------------------------------------------
Investment Shares 165 - 48 - 41 - 129 -
Investments at Cost $3,953 - 423 - 553 - 1,231 -
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
SELIGMAN SELIGMAN TEMPLETON TEMPLETON
GLOBAL TECHNOLOGY SMALL-CAP VALUE ASSET STRATEGY DEVELOPING MARKETS
FUND FUND FUND SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C> <C> <C>
Investments at net asset value $3,585 - 1,009 - 44,303 62 107,584 546
---------------------------------------------------------------------------------------------------------------------------
Total assets 3,585 - 1,009 - 44,303 62 107,584 546
Liabilities:
Accrued mortality and expense risk and administrative charges:
USAllianz Alterity Traditional 5 - (2) - - - - -
USAllianz Alterity Enhanced 1 - - - - - - -
USAllianz Alterity Optional 1 - - - - - - -
USAllianz Rewards Traditional 2 - 1 - - - - -
USAllianz Rewards Enhanced (1) - - - - - - -
Valuemark II & III - - - - 98 - 64 -
Valuemark IV - - - - 6 - 7 -
Valuemark Charter Traditional - - - - - - - 9
Valuemark Charter Enhanced - - - - - - - 1
---------------------------------------------------------------------------------------------------------------------------
Total liabilities 8 - (1) - 104 - 71 10
Net assets $3,577 - 1,010 - 44,199 62 107,513 536
---------------------------------------------------------------------------------------------------------------------------
Contract owners' equity:
Contracts in accumulation period:
USAllianz Alterity Traditional (note 7) $1,086 - 173 - - - - 48
USAllianz Alterity Enhanced (note 7) 332 - 6 - - - - 9
USAllianz Alterity Optional (note 7) 341 - 80 - - - - 67
USAllianz Rewards Traditional (note 8) 1,101 - 694 - - - - 55
USAllianz Rewards Enhanced (note 8) 717 - 57 - - - - -
Valuemark II and III (note 5) - - - - 26,973 - 77,752 -
Valuemark IV (note 5) - - - - 15,776 - 28,951 -
Valuemark Charter Traditional (note 6) - - - - - 33 - 243
Valuemark Charter Enhanced (note 6) - - - - - 29 - 114
Contracts in annuity payment period (note 2) - - - - 1,450 - 810 -
---------------------------------------------------------------------------------------------------------------------------
Total contract owners' equity $3,577 - 1,010 - 44,199 62 107,513 536
---------------------------------------------------------------------------------------------------------------------------
Investment Shares 137 - 104 - 2,349 3 18,941 97
Investments at Cost $3,993 - 1,000 - 47,016 66 130,907 591
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
TEMPLETON TEMPLETON TEMPLETON TEMPLETON
GLOBAL INCOME GROWTH SECURITIESINTERNATIONAL SECURITIESINTERNATIONAL SMALLER
SECURITIES FUND FUND FUND COMPANIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at net asset value $58,421 523 524,750 1,938 542,648 4,111 20,592 168
---------------------------------------------------------------------------------------------------------------------------
Total assets 58,421 523 524,750 1,938 542,648 4,111 20,592 168
Liabilities:
Accrued mortality and expense risk and administrative charges:
USAllianz Alterity Traditional - - - 1 - - - -
USAllianz Alterity Enhanced - - - 1 - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 7 - 364 - 237 - 23 -
Valuemark IV 6 - 12 - 9 - 6 -
Valuemark Charter Traditional - 6 - 27 - 68 - 7
Valuemark Charter Enhanced - - - 6 - 6 - 1
---------------------------------------------------------------------------------------------------------------------------
Total liabilities 13 6 376 35 246 74 29 8
Net assets $58,408 517 524,374 1,903 542,402 4,037 20,563 160
---------------------------------------------------------------------------------------------------------------------------
Contract owners' equity:
Contracts in accumulation period:
USAllianz Alterity Traditional (note 7) $ - - - 133 - - - -
USAllianz Alterity Enhanced (note 7) - - - 124 - - - -
USAllianz Alterity Optional (note 7) - - - 145 - - - -
USAllianz Rewards Traditional (note 8) - - - 83 - - - -
USAllianz Rewards Enhanced (note 8) - - - 118 - - - -
Valuemark II and III (note 5) 49,716 - 360,195 - 452,283 - 10,166 -
Valuemark IV (note 5) 8,564 - 155,766 - 86,934 - 9,826 -
Valuemark Charter Traditional (note 6) - 512 - 917 - 3,592 - 12
Valuemark Charter Enhanced (note 6) - 5 - 383 - 445 - 148
Contracts in annuity payment period (note 2) 128 - 8,413 - 3,185 - 571 -
--------------------------------------------------------------------------------------------------------------------------
Total contract owners' equity $58,408 517 524,374 1,903 542,402 4,037 20,563 160
--------------------------------------------------------------------------------------------------------------------------
Investment Shares 5,419 49 40,303 149 29,380 224 1,875 15
Investments at Cost $67,927 559 518,663 2,004 610,337 4,231 20,482 168
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
TEMPLETON USALLIANZ USALLIANZ USALLIANZ
PACIFIC GROWTH VIP DIVERSIFIED ASSETSVIP FIXED INCOMEVIP GLOBAL OPPORTUNITIES
SECURITIES FUND FUND FUND FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C> <C>
Investments at net asset value $53,967 152 - 1,904 - 1,044 - 82
---------------------------------------------------------------------------------------------------------------------------
Total assets 53,967 152 - 1,904 - 1,044 - 82
Liabilities:
Accrued mortality and expense risk and administrative charges:
USAllianz Alterity Traditional - - - 1 - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 28 - - 6 - 2 - -
Valuemark IV 6 - - - - 6 - -
Valuemark Charter Traditional - 1 - - - - - -
Valuemark Charter Enhanced - 1 - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total liabilities 34 2 - 7 - 8 - -
Net assets $53,933 150 - 1,897 - 1,036 - 82
---------------------------------------------------------------------------------------------------------------------------
Contract owners' equity:
Contracts in accumulation period:
USAllianz Alterity Traditional (note 7) $ - 18 - 173 - 17 - 33
USAllianz Alterity Enhanced (note 7) - 7 - - - 5 - 1
USAllianz Alterity Optional (note 7) - 11 - 5 - - - 18
USAllianz Rewards Traditional (note 8) - - - 14 - 66 - 20
USAllianz Rewards Enhanced (note 8) - 13 - 3 - 12 - 10
Valuemark II and III (note 5) 45,591 - - 868 - 463 - -
Valuemark IV (note 5) 7,886 - - 834 - 473 - -
Valuemark Charter Traditional (note 6) - 6 - - - - - -
Valuemark Charter Enhanced (note 6) - 95 - - - - - -
Contracts in annuity payment period (note 2) 456 - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total contract owners' equity $53,933 150 - 1,897 - 1,036 - 82
---------------------------------------------------------------------------------------------------------------------------
Investment Shares 6,638 19 - 186 - 105 - 9
Investments at Cost $58,679 174 - 1,981 - 1,055 - 89
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
USALLIANZ USALLIANZ VAN KAMPEN VAN KAMPEN
VIP GROWTH VIP MONEY MARKET LIT ENTERPRISE LIT GROWTH & INCOME
FUND FUND PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C> <C>
Investments at net asset value $ - 1,381 - 6,782 773 - 979 -
---------------------------------------------------------------------------------------------------------------------------
Total assets - 1,381 - 6,782 773 - 979 -
Liabilities:
Accrued mortality and expense risk and administrative charges:
USAllianz Alterity Traditional - - - (2) - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - 98 - - - -
USAllianz Rewards Traditional - - - 8 1 - 1 -
USAllianz Rewards Enhanced - - - (105) (3) - (5) -
Valuemark II & III - 6 - - - - - -
Valuemark IV - 5 - - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total liabilities - 11 - (1) (2) - (4) -
Net assets $ - 1,370 - 6,783 775 - 983 -
---------------------------------------------------------------------------------------------------------------------------
Contract owners' equity:
Contracts in accumulation period:
USAllianz Alterity Traditional (note 7) $ - 58 - 462 44 - 68 -
USAllianz Alterity Enhanced (note 7) - 2 - 92 35 - 31 -
USAllianz Alterity Optional (note 7) - 7 - 197 38 - 40 -
USAllianz Rewards Traditional (note 8) - 13 - 5,376 509 - 739 -
USAllianz Rewards Enhanced (note 8) - 80 - 656 149 - 105 -
Valuemark II and III (note 5) - 673 - - - - - -
Valuemark IV (note 5) - 537 - - - - - -
Valuemark Charter Traditional (note 6) - - - - - - - -
Valuemark Charter Enhanced (note 6) - - - - - - - -
Contracts in annuity payment period (note 2) - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total contract owners' equity $ - 1,370 - 6,783 775 - 983 -
---------------------------------------------------------------------------------------------------------------------------
Investment Shares - 128 - 6,783 32 - 56 -
Investments at Cost $ - 1,389 - 6,783 803 - 942 -
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
TOTAL
ALL
FUNDS
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C>
Total investments at net asset value $6,580,278 47,879
---------------------------------------------------------------------------------------------------------------------------
Liabilities:
Accrued mortality and expense risk and administrative charges:
USAllianz Alterity Traditional 22 1
USAllianz Alterity Enhanced 8 3
USAllianz Alterity Optional 14 101
USAllianz Rewards Traditional 35 12
USAllianz Rewards Enhanced (19) (104)
Valuemark II & III 2,983 14
Valuemark IV 225 11
Valuemark Charter Traditional - 325
Valuemark Charter Enhanced (2) 53
---------------------------------------------------------------------------------------------------------------------------
Total liabilities 3,266 416
Net assets $6,577,012 47,463
Contract owners' equity:
Contracts in accumulation period:
USAllianz Alterity Traditional (note 7) $7,849 2,162
USAllianz Alterity Enhanced (note 7) 2,239 592
USAllianz Alterity Optional (note 7) 5,246 1,403
USAllianz Rewards Traditional (note 8) 19,416 8,196
USAllianz Rewards Enhanced (note 8) 6,719 1,576
Valuemark II and III (note 5) 4,737,663 2,004
Valuemark IV (note 5) 1,726,231 1,844
Valuemark Charter Traditional (note 6) - 25,094
Valuemark Charter Enhanced (note 6) - 4,592
Contracts in annuity payment period (note 2) 71,649 -
---------------------------------------------------------------------------------------------------------------------------
Total contract owners' equity $6,577,012 47,463
---------------------------------------------------------------------------------------------------------------------------
Investment Shares 672,808 21,419
Investments at Cost $6,421,526 48,002
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
AIM V.I. AIM V.I. AIM V.I.
CAPITAL APPRECIATION AIM INTERNATIONAL EQUITY VALUE
FUND V.I. GROWTH FUND FUND FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Investment income:
Dividends reinvested in fund shares $ - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
<S> <C> <C> <C> <C>
USAllianz Alterity Traditional 1 - 4 - 1 - (1) -
USAllianz Alterity Enhanced 1 - 1 - - - - -
USAllianz Alterity Optional 1 - 2 - 1 - 2 -
USAllianz Rewards Traditional 4 - 2 - 2 - 3 -
USAllianz Rewards Enhanced (2) - (1) - - - 1 -
Valuemark II & III - - 215 - - - - -
Valuemark IV - - 182 - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
Administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III - - 26 - - - - -
Valuemark IV - - 20 - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses 5 - 451 - 4 - 5 -
Investment income (loss), net (5) - (451) - (4) - (5) -
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds - - - - - - - -
Realized gains (losses) on sales of investments, net(1) - 50 - (1) - (2) -
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net (1) - 50 - (1) - (2) -
Net change in unrealized appreciation
(depreciation) on investments 42 - (1,358) - (130) - (192) -
---------------------------------------------------------------------------------------------------------------------------
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net 41 - (1,308) - (131) - (194) -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations$36 - (1,759) - (135) - (199) -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
ALGER ALGER AMERICAN ALGER AMERICAN
ALGER AMERICAN MIDCAP GROWTH SMALL CAPITALIZATION
AMERICAN GROWTH FUNDLEVERAGED ALLCAP FUND PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Investment income:
Dividends reinvested in fund shares $ - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
USAllianz Alterity Traditional - - (1) - 1 - - -
USAllianz Alterity Enhanced 1 - 1 - 1 - - -
USAllianz Alterity Optional 1 - (1) - (2) - (2) -
USAllianz Rewards Traditional 4 - 2 - 2 - - -
USAllianz Rewards Enhanced (2) - 1 - 2 - (3) -
Valuemark II & III 160 - 115 - - - - -
Valuemark IV 122 - 103 - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
Administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 19 - 14 - - - - -
Valuemark IV 14 - 12 - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses 319 - 246 - 4 - (5) -
Investment income (loss), net (319) - (246) - (4) - 5 -
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual
funds 4,483 - 2,503 - 36 - 57 -
Realized gains (losses) on sales of investments,
net (363) - (639) - - - (1) -
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net 4,120 - 1,864 - 36 - 56 -
Net change in unrealized appreciation
(depreciation) on investments (4,878) - (4,668) - 21 - (79) -
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net(758) - (2,804) - 57 - (23) -
Net increase (decrease) in net assets from
operations $(1,077) - (3,050) - 53 - (18) -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
DAVIS VA DAVIS VA DAVIS VA FRANKLIN
FINANCIAL REAL ESTATE VALUE AGGRESSIVE GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Investment income:
Dividends reinvested in fund shares $ - - 2 - - - - -
---------------------------------------------------------------------------------------------------------------------------
Expenses:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Mortality and expense risk charges:
USAllianz Alterity Traditional - - (1) - 1 - - -
USAllianz Alterity Enhanced (3) - - - 3 - - -
USAllianz Alterity Optional - - 2 - 2 - - -
USAllianz Rewards Traditional - - 1 - 1 - - -
USAllianz Rewards Enhanced 1 - - - 1 - - -
Valuemark II & III - - - - - - 16 -
Valuemark IV - - - - - - 9 -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
Administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III - - - - - - 2 -
Valuemark IV - - - - - - 1 -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses (2) - 2 - 8 - 28 -
Investment income (loss), net 2 - - - (8) - (28) -
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds - - - - - - - -
Realized gains (losses) on sales of investments, net 2 - (1) - - - (3)
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net 2 - (1) - - - (3) -
Net change in unrealized appreciation
(depreciation) on investments 68 - 9 - (11) - 91 -
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net 70 - 8 - (11) - 88 -
Net increase (decrease) in net assets from
operations $ 72 - 8 - (19) - 60 -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
FRANKLIN FRANKLIN FRANKLIN FRANKLIN
GLOBAL COMMUNICATIONSGLOBAL HEALTH CARE GROWTH AND INCOME HIGH INCOME
SECURITIES FUND SECURITIES FUND SECURITIES FUND FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Investment income:
<S> <C> <C> <C> <C> <C> <C> <C>
Dividends reinvested in fund shares $ 13,808 10 8 - 31,400 35 1,032 2
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - 1 - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 7,539 - 136 - 5,996 - 1,500 -
Valuemark IV 620 - 94 - 1,332 - 734 -
Valuemark Charter Traditional - 2 - 1 - 5 - 3
Valuemark Charter Enhanced - 2 - 1 - 4 - 1
Administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 905 - 16 - 720 - 180 -
Valuemark IV 69 - 11 - 149 - 82 -
Valuemark Charter Traditional - - - - - 1 - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses 9,133 4 257 2 8,198 10 2,496 4
---------------------------------------------------------------------------------------------------------------------------
Investment income (loss), net 4,675 6 (249) (2) 23,202 25 (1,464) (2)
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual
funds 166,308 126 - - 92,228 108 - -
Realized gains (losses) on sales of
investments, net 25,343 (82) 1,309 39 4,861 (48) (32,925) (65)
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net 191,651 44 1,309 39 97,089 60 (32,925) (65)
Net change in unrealized appreciation
(depreciation) on investments (308,504) (171) 10,974 96 (53,904) 65 22,880 40
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments,
net (116,853) (127) 12,283 135 43,185 125 (10,045) (25)
Net increase (decrease) in net assets from
operations $(112,178) (121) 12,034 133 66,387 150 (11,509) (27)
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
FRANKLIN FRANKLIN FRANKLIN FRANKLIN
INCOME SECURITIES LARGE CAP GROWTH MONEY MARKET NATURAL RESOURCES
FUND SECURITIES FUND FUND SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Investment income:
<S> <C> <C> <C> <C> <C> <C> <C>
Dividends reinvested in fund shares $62,222 126 1,940 4 11,805 279 283 -
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 5,178 - 2,230 - 1,899 - 326 -
Valuemark IV 986 - 1,728 - 623 - 81 -
Valuemark Charter Traditional - 11 - 6 - 55 - 1
Valuemark Charter Enhanced - 2 - 4 - - - -
Administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 621 - 268 - 228 - 39 -
Valuemark IV 110 - 193 - 70 - 9 -
Valuemark Charter Traditional - 1 - 1 - 6 - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses 6,895 14 4,419 11 2,820 61 455 1
Investment income (loss), net 55,327 112 (2,479) (7) 8,985 218 (172) (1)
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual
funds 29,750 61 21,519 53 - - - -
Realized gains (losses) on sales of investments,
net (11,884) (61) 14,132 87 - - 1,288 2
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net 17,866 - 35,651 140 - - 1,288 2
Net change in unrealized appreciation
(depreciation) on investments 14,290 93 28,107 (20) 44 (1) 8,427 18
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments,
net 32,156 93 63,758 120 44 (1) 9,715 20
Net increase (decrease) in net assets from
operations $87,483 205 61,279 113 9,029 217 9,543 19
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
FRANKLIN FRANKLIN FRANKLIN FRANKLIN
REAL ESTATE RISING DIVIDENDS S&P 500 INDEX SMALL CAP
FUND SECURITIES FUND FUND FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Investment income:
<S> <C> <C> <C> <C> <C>
Dividends reinvested in fund shares $9,785 39 7,199 8 18 - - -
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - 1 -
USAllianz Rewards Traditional - - - - - - 3 -
USAllianz Rewards Enhanced - - - - - - 1 -
Valuemark II & III 1,026 - 2,593 - 188 - 2,978 -
Valuemark IV 328 - 667 - 154 - 1,704 -
Valuemark Charter Traditional - 4 - 2 - - - 9
Valuemark Charter Enhanced - 1 - 2 - - - 2
Administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 123 - 311 - 23 - 357 -
Valuemark IV 37 - 75 - 17 - 191 -
Valuemark Charter Traditional - - - - - - - 1
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses 1,514 5 3,646 4 382 - 5,235 12
Investment income (loss), net 8,271 34 3,553 4 (364) - (5,235) (12)
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual
funds 5,824 23 56,265 70 - - 32,851 57
Realized gains (losses) on sales of investments
net (6,209) 28 (12,659) (116) 34 - 55,715 310
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net (385) 51 43,606 (46) 34 - 88,566 367
Net change in unrealized appreciation
(depreciation) on investments 24,007 51 (34,965) 53 (157) - (56,780) (246)
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments,
net 23,622 102 8,641 7 (123) - 31,786 121
Net increase (decrease) in net assets from
operations $31,893 136 12,194 11 (487) - 26,551 109
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
FRANKLIN FRANKLIN FRANKLIN FRANKLIN
TECHNOLOGY U.S. GOVERNMENT VALUE SECURITIES ZERO COUPON
SECURITIES FUND FUND FUND FUND - 2000
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Investment income:
<S> <C> <C> <C> <C> <C> <C> <C>
Dividends reinvested in fund shares $ - - 386 2 56 - 58 -
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - 1 - - - - -
USAllianz Rewards Traditional - - 1 - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 12 - 3,237 - 55 - 446 -
Valuemark IV 11 - 693 - 59 - 50 -
Valuemark Charter Traditional - - - 11 - 1 - -
Valuemark Charter Enhanced - - - 3 - - - -
Administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 1 - 388 - 7 - 54 -
Valuemark IV 1 - 78 - 7 - 6 -
Valuemark Charter Traditional - - - 1 - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses 25 - 4,398 15 128 1 556 -
Investment income (loss), net (25) - (4,012) (13) (72) (1) (498) -
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds - - - - - - 551 -
Realized gains (losses) on sales of investments, net42 - (8,992) (94) 287 (5) (1,457) -
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net 42 - (8,992) (94) 287 (5) (906) -
Net change in unrealized appreciation
(depreciation) on investments 420 - 36,344 210 1,838 17 3,045 -
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net 462 - 27,352 116 2,125 12 2,139 -
Net increase (decrease) in net assets from
operations $437 - 23,340 103 2,053 11 1,641 -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
FRANKLIN FRANKLIN J.P. MORGAN J.P. MORGAN
ZERO COUPON ZERO COUPONINTERNATIONAL OPPORTUNITIESU.S. DISCIPLINED EQUITY
FUND - 2005 FUND - 2010 PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ 52 - 55 - - - - -
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 392 - 359 - - - - -
Valuemark IV 122 - 151 - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
Administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 47 - 43 - - - - -
Valuemark IV 14 - 17 - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses 575 - 570 - - - - -
Investment income (loss), net (523) - (515) - - - - -
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual
funds 1,445 - 861 - - - 1 -
Realized gains (losses) on sales of investments,
net (688) - (3,632) - - - - -
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net 757 - (2,771) - - - 1 -
Net change in unrealized appreciation
(depreciation) on investments 2,628 - 7,293 - (17) - (20) -
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net3,385 - 4,522 - (17) - (19) -
Net increase (decrease) in net assets from
operations $2,862 - 4,007 - (17) - (19) -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
FRANKLIN FRANKLIN FRANKLIN FRANKLIN
TECHNOLOGY U.S. GOVERNMENT VALUE SECURITIES ZERO COUPON
SECURITIES FUND FUND FUND FUND - 2000
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ - - 386 2 56 - 58 -
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - 1 - - - - -
USAllianz Rewards Traditional - - 1 - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 12 - 3,237 - 55 - 446 -
Valuemark IV 11 - 693 - 59 - 50 -
Valuemark Charter Traditional - - - 11 - 1 - -
Valuemark Charter Enhanced - - - 3 - - - -
Administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 1 - 388 - 7 - 54 -
Valuemark IV 1 - 78 - 7 - 6 -
Valuemark Charter Traditional - - - 1 - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses 25 - 4,398 15 128 1 556 -
Investment income (loss), net (25) - (4,012) (13) (72) (1) (498) -
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds - - - - - - 551 -
Realized gains (losses) on sales of investments,
net 42 - (8,992) (94) 287 (5) (1,457) -
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net 42 - (8,992) (94) 287 (5) (906) -
Net change in unrealized appreciation
(depreciation) on investments 420 - 36,344 210 1,838 17 3,045 -
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net 462 - 27,352 116 2,125 12 2,139 -
Net increase (decrease) in net assets from
operations $437 - 23,340 103 2,053 11 1,641 -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
FRANKLIN FRANKLIN J.P. MORGAN J.P. MORGAN
ZERO COUPON ZERO COUPONINTERNATIONAL OPPORTUNITIESU.S. DISCIPLINED EQUITY
FUND - 2005 FUND - 2010 PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ 52 - 55 - - - - -
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 392 - 359 - - - - -
Valuemark IV 122 - 151 - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
Administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 47 - 43 - - - - -
Valuemark IV 14 - 17 - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses 575 - 570 - - - - -
Investment income (loss), net (523) - (515) - - - - -
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual
funds 1,445 - 861 - - - 1 -
Realized gains (losses) on sales of investments,
net (688) - (3,632) - - - - -
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net 757 - (2,771) - - - 1 -
Net change in unrealized appreciation
(depreciation) on investments 2,628 - 7,293 - (17) - (20) -
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net 3,385 - 4,522 - (17) - (19) -
Net increase (decrease) in net assets from
operations $2,862 - 4,007 - (17) - (19) -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
MUTUAL MUTUAL OPPENHEIMER OPPENHEIMER
DISCOVERY SECURITIES SHARES SECURITIES GLOBAL SECURITIES HIGH INCOME
FUND FUND FUND/VA FUND/VA
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Investment income:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Dividends reinvested in fund shares $5,606 14 10,729 37 - - - -
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
USAllianz Alterity Traditional 1 - - - 1 - 2 -
USAllianz Alterity Enhanced - - 1 - - - - -
USAllianz Alterity Optional - - - - 1 - - -
USAllianz Rewards Traditional - - - - 3 - 1 -
USAllianz Rewards Enhanced - - - - (3) - - -
Valuemark II & III 825 - 1,433 - - - - -
Valuemark IV 1,085 - 2,327 - - - - -
Valuemark Charter Traditional - 2 - 8 - - - -
Valuemark Charter Enhanced - 2 - 3 - - - -
Administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 99 - 172 - - - - -
Valuemark IV 121 - 261 - - - - -
Valuemark Charter Traditional - - - 1 - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses 2,131 4 4,194 12 2 - 3 -
Investment income (loss), net 3,475 10 6,535 25 (2) - (3) -
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual
funds - - 9,289 33 - - - -
Realized gains (losses) on sales of investments,
net 5,113 22 8,825 4 (3) - - -
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net 5,113 22 18,114 37 (3) - - -
Net change in unrealized appreciation
(depreciation) on investments 5,045 1 (1,872) 60 (78) - 4 -
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments,
net 10,158 23 16,242 97 (81) - 4 -
Net increase (decrease) in net assets from
operations $13,633 33 22,777 122 (83) - 1 -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
OPPENHEIMER PIMCO VIT PIMCO VIT PIMCO VIT
MAIN STREET GROWTH & HIGH YIELD BOND STOCKS PLUS GROWTH & TOTAL RETURN BOND
INCOME FUND/VA PORTFOLIO INCOME PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C
Investment income:
Dividends reinvested in fund shares $ - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
USAllianz Alterity Traditional 4 - 1 - - - 1 -
USAllianz Alterity Enhanced - - - - - - 1 -
USAllianz Alterity Optional - - 1 - - - 5 -
USAllianz Rewards Traditional 4 - 2 - - - - -
USAllianz Rewards Enhanced (3) - - - - - - -
Valuemark II & III - - - - - - - -
Valuemark IV - - - - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
Administrative charges:
USAllianz Alterity Traditional 1 - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - 1 -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III - - - - - - - -
Valuemark IV - - - - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses 6 - 4 - - - 8 -
Investment income (loss), net (6) - (4) - - - (8) -
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds - - - - - - - -
Realized gains (losses) on sales of investments, net- - 1 - 1 - - -
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net - - 1 - 1 - - -
Net change in unrealized appreciation
(depreciation) on investments (72) - (5) - (23) - 5 -
---------------------------------------------------------------------------------------------------------------------------
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net (72) - (4) - (22) - 5 -
Net increase (decrease) in net assets from
operations $ (78) - (8) - (22) - (3) -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
SELIGMAN SELIGMAN TEMPLETON TEMPLETON
GLOBAL TECHNOLOGY SMALL-CAP VALUE ASSET STRATEGY DEVELOPING MARKETS
FUND FUND FUND SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ - - - - 80 - 1,249 3
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
USAllianz Alterity Traditional 4 - (2) - - - - -
USAllianz Alterity Enhanced 1 - - - - - - -
USAllianz Alterity Optional 1 - - - - - - -
USAllianz Rewards Traditional 2 - 1 - - - - -
USAllianz Rewards Enhanced (1) - - - - - - -
Valuemark II & III - - - - 307 - 1,013 -
Valuemark IV - - - - 176 - 362 -
Valuemark Charter Traditional - - - - - - - 4
Valuemark Charter Enhanced - - - - - - - 1
Administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III - - - - 37 - 122 -
Valuemark IV - - - - 20 - 41 -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses 7 - (1) - 540 - 1,538 5
Investment income (loss), net (7) - 1 - (460) - (289) (2)
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds - - - - - - - -
Realized gains (losses) on sales of investments, net(4) - 1 - (590) (1) (4,718) 228
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net (4) - 1 - (590) (1) (4,718) 228
Net change in unrealized appreciation
(depreciation) on investments (408) - 10 - (1,099) (2) (34,509) (63)
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net(412) - 11 - (1,689) (3) (39,227) 165
Net increase (decrease) in net assets from
operations $(419) - 12 - (2,149) (3) (39,516) 163
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
TEMPLETON TEMPLETON TEMPLETON TEMPLETON
GLOBAL INCOME GROWTH SECURITIESINTERNATIONAL SECURITIESINTERNATIONAL SMALLER
SECURITIES FUND FUND FUND COMPANIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Investment income:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Dividends reinvested in fund shares $ 105 1 10,493 23 397 2 406 3
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
USAllianz Alterity Traditional - - 1 - - - - -
USAllianz Alterity Enhanced - - 1 - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 552 - 3,976 - 4,971 - 120 -
Valuemark IV 95 - 1,646 - 913 - 103 -
Valuemark Charter Traditional - 4 - 13 - 31 - 4
Valuemark Charter Enhanced - - - 3 - 4 - 1
Administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 66 - 477 - 596 - 14 -
Valuemark IV 11 - 184 - 102 - 12 -
Valuemark Charter Traditional - - - 1 - 4 - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses 724 4 6,285 17 6,582 39 249 5
Investment income (loss), net (619) (3) 4,208 6 (6,185) (37) 157 (2)
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual
funds - - 69,123 158 173,358 895 - -
Realized gains (losses) on sales of investments,
net (3,337) (1) 9,550 24 (2,381) (340) 229 235
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net (3,337) (1) 78,673 182 170,977 555 229 235
Net change in unrealized appreciation
(depreciation) on investments 1,489 (14) (113,471) (112) (215,681) (240) (396) (2)
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments,
net (1,848) (15) (34,798) 70 (44,704) 315 (167) 233
Net increase (decrease) in net assets from
operations $(2,467) (18) (30,590) 76 (50,889) 278 (10) 231
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
TEMPLETON USALLIANZ USALLIANZ USALLIANZ
PACIFIC GROWTH VIP DIVERSIFIED ASSETSVIP FIXED INCOMEVIP GLOBAL OPPORTUNITIES
SECURITIES FUND FUND FUND FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ 86 - - 56 - 28 - -
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
USAllianz Alterity Traditional - - - 1 - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 574 - - 13 - 2 - 6
Valuemark IV 104 - - - - 5 - 4
Valuemark Charter Traditional - 1 - - - - - -
Valuemark Charter Enhanced - 1 - - - - - -
Administrative charges:
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - - - - - -
USAllianz Rewards Traditional - - - - - - - -
USAllianz Rewards Enhanced - - - - - - - -
Valuemark II & III 69 - - 2 - - - 1
Valuemark IV 12 - - - - 1 - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses 759 2 - 16 - 8 - 11
Investment income (loss), net (673) (2) - 40 - 20 - (11)
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual
funds - - - - - - - -
Realized gains (losses) on sales of investments,
net (5,441) 86 - (5) - 18 - -
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net (5,441) 86 - (5) - 18 - -
Net change in unrealized appreciation
(depreciation) on investments (9,213) (23) - (79) - (8) - (7)
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments,
net (14,654) 63 - (84) - 10 - (7)
Net increase (decrease) in net assets from
operations $(15,327) 61 - (44) - 30 - (18)
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
USALLIANZ USALLIANZ VAN KAMPEN VAN KAMPEN
VIP GROWTH VIP MONEY MARKET LIT ENTERPRISE LIT GROWTH & INCOME
FUND FUND PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends reinvested in fund shares $ - 4 - 4 - - - -
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
USAllianz Alterity Traditional - - - (1) - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - 88 - - - -
USAllianz Rewards Traditional - - - 7 1 - 1 -
USAllianz Rewards Enhanced - - - (94) (3) - (4) -
Valuemark II & III - - - - - - - -
Valuemark IV - - - - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
Administrative charges:-
USAllianz Alterity Traditional - - - - - - - -
USAllianz Alterity Enhanced - - - - - - - -
USAllianz Alterity Optional - - - 10 - - - -
USAllianz Rewards Traditional - - - 1 - - - -
USAllianz Rewards Enhanced - - - (11) - - - -
Valuemark II & III - - - - - - - -
Valuemark IV - - - - - - - -
Valuemark Charter Traditional - - - - - - - -
Valuemark Charter Enhanced - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses - - - - (2) - (3) -
Investment income (loss), net - 4 - 4 2 - 3 -
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds - - - - 1 - - -
Realized gains (losses) on sales of investments, net- 7 - (1) - - - -
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net - 7 - (1) 1 - - -
Net change in unrealized appreciation
(depreciation) on investments - (22) - (1) (30) - 37 -
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net - (15) - (2) (29) - 37 -
Net increase (decrease) in net assets from
operations $ - (11) - 2 (27) - 40 29
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
(IN THOUSANDS)
TOTAL
ALL
FUNDS
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
Investment income:
<S> <C> <C>
Dividends reinvested in fund shares $169,260 680
---------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk charges:
USAllianz Alterity Traditional 18 -
USAllianz Alterity Enhanced 9 -
USAllianz Alterity Optional 17 88
USAllianz Rewards Traditional 40 7
USAllianz Rewards Enhanced (15) (94)
Valuemark II & III 50,367 21
Valuemark IV 17,364 9
Valuemark Charter Traditional - 178
Valuemark Charter Enhanced - 37
Administrative charges:
USAllianz Alterity Traditional 1 -
USAllianz Alterity Enhanced - -
USAllianz Alterity Optional 1 10
USAllianz Rewards Traditional - 1
USAllianz Rewards Enhanced - (11)
Valuemark II & III 6,044 3
Valuemark IV 1,947 1
Valuemark Charter Traditional - 17
Valuemark Charter Enhanced - -
---------------------------------------------------------------------------------------------------------------------------
Total expenses 75,793 267
Investment income (loss), net 93,467 413
Realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Realized capital gain distributions on mutual funds 666,453 1,584
Realized gains (losses) on sales of investments, net 30,852 271
---------------------------------------------------------------------------------------------------------------------------
Realized gains (losses) on investments, net 697,305 1,855
Net change in unrealized appreciation
(depreciation) on investments (675,402) (307)
Total realized gains (losses) and unrealized
appreciation (depreciation) on investments, net 21,903 1,548
Net increase (decrease) in net assets from operations $115,370 1,961
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED) AND THE YEAR
ENDED DECEMBER 31, 1999 (IN THOUSANDS)
AIM V.I. AIM V.I.
CAPITAL APPRECIATION FUND GROWTH FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C>
Investment income (loss), net $ (5) - - - (451) 3 - -
Realized gains (losses) on investments, net (1) - - - 50 205 - -
Net change in unrealized appreciation
(depreciation) on investments 42 - - - (1,358) 359 - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations 36 - - - (1,759) 567 - -
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 3,734 - - - 6,088 77 - -
Transfers between funds 190 - - - 46,673 9,294 - -
Surrenders and terminations (34) - - - (4,461) (79) - -
Rescissions (34) - - - (225) - - -
Bonus 177 - - - 105 - - -
Other transactions (note 2) 7 - - - 43 - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions 4,040 - - - 48,223 9,292 - -
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 4,076 - - - 46,464 9,859 - -
Net assets at beginning of period - - - - 9,859 - - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $4,076 - - - 56,323 9,859 - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
AIM V.I. AIM V.I.
INTERNATIONAL EQUITY FUND VALUE FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $ (4) - - - (5) - - -
Realized gains (losses) on investments, net (1) - - - (2) - - -
Net change in unrealized appreciation
(depreciation) on investments (130) - - - (192) - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations (135) - - - (199) - - -
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 1,528 - - - 2,577 - - -
Transfers between funds 177 - - - 190 - - -
Surrenders and terminations (9) - - - (18) - - -
Rescissions (5) - - - (31) - - -
Bonus 65 - - - 92 - -
Other transactions (note 2) 4 - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions 1,760 - - - 2,810 - - -
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 1,625 - - - 2,611 - - -
Net assets at beginning of period - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $1,625 - - - 2,611 - - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
ALGER AMERICAN ALGER AMERICAN
GROWTH FUND LEVERAGED ALLCAP FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C>
Investment income (loss), net $(319) (10) - - (246) (6) - -
Realized gains (losses) on investments,
net 4,120 - - - 1,864 17 - -
Net change in unrealized appreciation
(depreciation) on investments (4,878) 484 - - (4,668) 656 - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations (1,077) 474 - - (3,050) 667 - -
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 4,298 221 - - 3,232 9 - -
Transfers between funds 30,433 9,751 - - 20,978 6,843 - -
Surrenders and terminations (3,355) (13) - - (2,574) (18) - -
Rescissions (72) - - - (57) - - -
Bonus 158 - - - 88 - - -
Other transactions (note 2) 23 - - - 24 - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions 31,485 9,959 - - 21,691 6,834 - -
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 30,408 10,433 - - 18,641 7,501 - -
Net assets at beginning of period 10,433 - - - 7,501 - - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $40,841 10,433 - - 26,142 7,501 - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
ALGER AMERICAN ALGER AMERICAN
MIDCAP GROWTH PORTFOLIO SMALL CAPITALIZATION PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C>
Investment income (loss), net $ (4) - - - 5 - - -
Realized gains (losses) on investments, net 36 - - - 56 - - -
Net change in unrealized appreciation
(depreciation) on investments 21 - - - (79) - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations 53 - - - (18) - - -
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 2,229 - - - 436 - - -
Transfers between funds 288 - - - 82 - - -
Surrenders and terminations (35) - - - (2) - - -
Rescissions (6) - - - - - - -
Bonus 73 - - - 13 - - -
Other transactions (note 2) 2 - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions 2,551 - - - 529 - - -
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 2,604 - - - 511 - - -
Net assets at beginning of period - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $2,604 - - - 511 - - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
DAVIS VA DAVIS VA
FINANCIAL PORTFOLIO REAL ESTATE PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ 2 - - - - - - -
Realized gains (losses) on investments, net 2 - - - (1) - - -
Net change in unrealized appreciation
(depreciation) on investments 68 - - - 9 - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets fro
operations 72 - - - 8 - - -
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 573 - - - 1,407 - - -
Transfers between funds 81 - - - 51 - - -
Surrenders and terminations (17) - - - (18) - - -
Rescissions - - - - (242) - - -
Bonus 22 - - - 40 - - -
Other transactions (note 2) - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions 659 - - - 1,238 - - -
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 731 - - - 1,246 - - -
Net assets at beginning of period - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $731 - - - 1,246 - - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
DAVIS VA FRANKLIN
VALUE PORTFOLIO AGGRESSIVE GROWTH SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C>
Investment income (loss), net $ (8) - - - (28) - - -
Realized gains (losses) on investments, net - - - - (3) - - -
Net change in unrealized appreciation
(depreciation) on investments (11) - - - 91 - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations (19) - - - 60 - - -
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 1,451 - - - 391 - - -
Transfers between funds 74 - - - 9,525 - - -
Surrenders and terminations (5) - - - (92) - - -
Rescissions (57) - - - - - - -
Bonus 41 - - - - - - -
Other transactions (note 2) - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions 1,504 - - - 9,824 - - -
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 1,485 - - - 9,884 - - -
Net assets at beginning of period - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $1,485 - - - 9,884 - - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
FRANKLIN GLOBAL COMMUNICATIONS FRANKLIN GLOBAL HEALTH
SECURITIES FUND CARE SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $4,675 19,074 6 8 (249) (110) (2) -
Realized gains (losses) on investments,
net 191,651 130,766 44 23 1,309 (444) 39 -
Net change in unrealized appreciation
(depreciation) on investments (308,504) 108,627 (171) 70 10,974 (413) 96 8
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations (112,178) 258,467 (121) 101 12,034 (967) 133 8
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 4,096 7,189 257 416 790 605 149 79
Transfers between funds 17,794 (11,957) 59 (27) 17,423 5,476 24 (4)
Surrenders and terminations (142,945)(254,941) (5) (2) (2,815) (3,102) (3) -
Rescissions (463) (402) - - (43) (4) (4) -
Bonus - - - - - - - -
Other transactions (note 2) 170 477 - - (4) (4) - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions (121,347)(259,634) 311 387 15,351 2,971 166 75
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets (233,525) (1,167) 190 488 27,385 2,004 299 83
Net assets at beginning of period 902,924 904,091 488 - 10,600 8,596 83 -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $669,399 902,924 678 488 37,985 10,600 382 83
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
FRANKLIN FRANKLIN
GROWTH AND INCOME FUND HIGH INCOME FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $23,202 24,294 25 16 (1,464) 72,685 (2) 104
Realized gains (losses) on investments,
net 97,089 180,951 60 35 (32,925) (2,133) (65) (47)
Net change in unrealized appreciation
(depreciation) on investments (53,904)(203,466) 65 (57) 22,880 (74,035) 40 (58)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 66,387 1,779 150 (6) (11,509) (3,483) (27) (1)
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 4,124 19,789 740 1,433 1,688 9,648 300 226
Transfers between funds (48,513) 2,508 (20) (6) (25,941) (15,589) (229) 274
Surrenders and terminations (164,230)(350,638) (311) (638) (53,888)(111,758) (49) (52)
Rescissions (187) (841) (22) - (204) (1,076) - -
Bonus - - 14 - - - - -
Other transactions (note 2) 658 663 - - 178 450 - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions (208,148)(328,519) 401 789 (78,166)(118,325) 22 448
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets (141,761)(326,740) 551 783 (89,675)(121,808) (5) 447
Net assets at beginning of period 876,3201,203,060 783 - 284,668 406,476 447 -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $734,559 876,320 1,334 783 194,993 284,668 442 447
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
FRANKLIN FRANKLIN
INCOME SECURITIES FUND LARGE CAP GROWTH SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $55,327 62,233 112 39 (2,479) (3,045) (7) (4)
Realized gains (losses) on investments
net 17,866 45,777 - 16 35,651 14,374 140 94
Net change in unrealized appreciation
(depreciation) on investments 14,290 (135,753) 93 (85) 28,107 74,106 (20) 84
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 87,483 (27,743) 205 (30) 61,279 85,435 113 174
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 2,780 13,764 288 1,302 4,772 13,426 579 1,518
Transfers between funds (47,325) (63,205) (25) 29 60,343 176,862 335 42
Surrenders and terminations (139,195)(306,495) (281) (3) (58,690)(101,959) (168) (924)
Rescissions (543) (1,138) - - (265) (311) - (274)
Bonus - - - - - - - -
Other transactions (note 2) 207 831 - - 543 409 - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions (184,076)(356,243) (18) 1,328 6,703 88,427 746 362
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets (96,593)(383,986) 187 1,298 67,982 173,862 859 536
Net assets at beginning of period 717,6111,101,597 1,298 - 378,340 204,478 536 -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $621,018 717,611 1,485 1,298 446,322 378,340 1,395 536
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
FRANKLIN FRANKLIN NATURAL RESOURCES
MONEY MARKET FUND SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $8,985 11,206 218 83 (172) 66 (1) 1
Realized gains (losses) on investments,
net - - - - 1,288 (9,180) 2 (11)
Net change in unrealized appreciation
(depreciation) on investments 44 - (1) - 8,427 20,689 18 1
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations 9,029 11,206 217 83 9,543 11,575 19 (9)
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 8,988 20,759 3,024 8,461 486 774 2 61
Transfers between funds 26,810 219,635 (1,872) 132 1,159 (4,496) (7) 16
Surrenders and terminations (135,128)(302,030) (187) (103) (7,308) (10,569) - -
Rescissions (1,046) (236) - - - (122) - -
Bonus - - - - - - - -
Other transactions (note 2) 5,163 7,023 2,769 - 5 9 - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions (95,212) (54,849) 3,734 8,490 (5,658) (14,404) (5) 77
Increase (decrease) in net assets (86,183) (43,643) 3,951 8,573 3,885 (2,829) 14 68
Net assets at beginning of period 337,292 380,935 8,573 - 39,382 42,211 68 -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $251,109 337,292 12,524 8,573 43,267 39,382 82 68
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
FRANKLIN FRANKLIN
REAL ESTATE FUND RISING DIVIDENDS SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $ 8,271 14,093 34 4 3,553 968 4 2
Realized gains (losses) on investments,
net (385) 22,522 51 7 43,606 121,634 (46) 52
Net change in unrealized appreciation
(depreciation) on investments 24,007 (51,341) 51 - (34,965)(184,821) 53 (77)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 31,893 (14,726) 136 11 12,194 (62,219) 11 (23)
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 1,990 2,486 239 294 1,622 8,831 273 569
Transfers between funds (7,849) (33,804) (63) 138 (40,457) (38,314) 5 1
Surrenders and terminations (28,960) (71,155) (5) - (76,297)(185,182) (132) (1)
Rescissions (105) (290) - - (169) (427) (20) -
Bonus - - - - - - 10 -
Other transactions (note 2) 50 72 - - 192 336 - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions (34,874)(102,691) 171 432 (115,109)(214,756) 136 569
Increase (decrease) in net assets (2,981)(117,417) 307 443 (102,915)(276,975) 147 546
Net assets at beginning of period 147,870 265,287 443 - 406,424 683,399 546 -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $144,889 147,870 750 443 303,509 406,424 693 546
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
FRANKLIN S&P 500 FRANKLIN
INDEX FUND SMALL CAP FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $(364) (14) - - (5,235) (2,935) (12) (2)
Realized gains (losses) on investments,
net 34 - - - 88,566 15,548 367 3
Net change in unrealized appreciation
(depreciation) on investments (157) 386 - - (56,780) 211,659 (246) 284
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations (487) 372 - - 26,551 224,272 109 285
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 1,771 279 - - 6,160 6,050 2,719 238
Transfers between funds 31,841 13,708 - - 27,996 15,164 1,457 460
Surrenders and terminations (4,868) (191) - - (63,080) (82,185) (407) -
Rescissions (45) - - - (168) (195) (47) -
Bonus - - - - - - 101 -
Other transactions (note 2) 50 - - - 75 414 (1,336) -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions 28,750 13,796 - - (29,017) (60,752) 2,487 698
Increase (decrease) in net assets 28,263 14,168 - - (2,466) 163,520 2,596 983
Net assets at beginning of period 14,168 - - - 463,300 299,780 983 -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $42,431 14,168 - - 460,834 463,300 3,579 983
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
FRANKLIN TECHNOLOGY FRANKLIN U.S. GOVERNMENT
SECURITIES FUND FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $(25) - - - (4,012) 66,246 (13) 243
Realized gains (losses) on investments,
net 42 - - - (8,992) 3,396 (94) (20)
Net change in unrealized appreciation
(depreciation) on investments 420 - - - 36,344 (82,778) 210 (250)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 437 - - - 23,340 (13,136) 103 (27)
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 290 - - - 2,175 10,213 1,280 1,811
Transfers between funds 9,226 - - - (14,885) (634) (651) 357
Surrenders and terminations (258) - - - (81,599)(173,064) (17) (277)
Rescissions (85) - - - (471) (1,184) - -
Bonus - - - - - - 58 -
Other transactions (note 2) - - - - 181 489 - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions 9,173 - - - (94,599)(164,180) 670 1,891
Increase (decrease) in net assets 9,610 - - - (71,259)(177,316) 773 1,864
Net assets at beginning of period - - - - 460,288 637,604 1,864 -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $9,610 - - - 389,029 460,288 2,637 1,864
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
FRANKLIN VALUE FRANKLIN
SECURITIES FUND ZERO COUPON FUND - 2000
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $(72) (133) (1) (1) (498) 9,221 - -
Realized gains (losses) on investments,
net 287 (411) (5) (7) (906) 1,927 - -
Net change in unrealized appreciation
(depreciation) on investments 1,838 309 17 - 3,045 (10,114) - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 2,053 (235) 11 (8) 1,641 1,034 - -
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 327 1,041 4 396 150 523 - -
Transfers between funds 1,763 4,224 20 (1) (3,052) 486 - -
Surrenders and terminations (2,677) (3,083) - (258) (12,374) (20,950) - -
Rescissions (31) (2) - - - (12) - -
Bonus - - - - - - - -
Other transactions (note 2) 3,046 4 - - 16 120 - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions 2,428 2,184 24 137 (15,260) (19,833) - -
Increase (decrease) in net assets 4,481 1,949 35 129 (13,619) (18,799) - -
Net assets at beginning of period 10,614 8,665 129 - 59,369 78,168 - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $15,095 10,614 164 129 45,750 59,369 - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
FRANKLIN FRANKLIN
ZERO COUPON FUND - 2005 ZERO COUPON FUND - 2010
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C>
Investment income (loss), net $(523) 7,179 - - (515) 7,708 - -
Realized gains (losses) on investments,
net 757 1,779 - - (2,771) 2,444 - -
Net change in unrealized appreciation
(depreciation) on investments 2,628 (14,138) - - 7,293 (21,090) - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 2,862 (5,180) - - 4,007 (10,938) - -
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 95 1,800 - - 456 2,617 - -
Transfers between funds (2,306) 2,677 - - (3,992) 4,159 - -
Surrenders and terminations (8,639) (15,202) - - (10,330) (20,612) - -
Rescissions - (104) - - (2) (91) - -
Bonus - - - - - - - -
Other transactions (note 2) (9) 160 - - (5) 235 - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions (10,859) (10,669) - - (13,873) (13,692) - -
Increase (decrease) in net assets (7,997) (15,849) - - (9,866) (24,630) - -
Net assets at beginning of period 59,429 75,278 - - 60,727 85,357 - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $51,432 59,429 - - 50,861 60,727 - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
J.P. MORGAN J.P. MORGAN
INTERNATIONAL OPPORTUNITIES PORTFOLIO U.S. DISCIPLINED EQUITY PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ - - - - - - - -
Realized gains (losses) on investments, net - - - - 1 - - -
Net change in unrealized appreciation
(depreciation) on investments (17) - - - (20) - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations (17) - - - (19) - - -
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 285 - - - 500 - - -
Transfers between funds 34 - - - 33 - - -
Surrenders and terminations - - - - (1) - - -
Rescissions - - - - - - - -
Bonus 5 - - - 23 - - -
Other transactions (note 2) - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions 324 - - - 555 - - -
Increase (decrease) in net assets 307 - - - 536 - - -
Net assets at beginning of period - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $307 - - - 536 - - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
MUTUAL DISCOVERY MUTUAL SHARES
SECURITIES FUND SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $3,475 2,765 10 4 6,535 5,047 25 6
Realized gains (losses) on investments,
net 5,113 877 22 - 18,114 10,361 37 (2)
Net change in unrealized appreciation
(depreciation) on investments 5,045 33,265 1 48 (1,872) 32,828 60 41
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 13,633 36,907 33 52 22,777 48,236 122 45
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 1,094 4,740 407 385 3,108 12,231 955 989
Transfers between funds 2,258 (12,243) 77 2 (24,619) 6,540 23 (28)
Surrenders and terminations (25,737) (50,318) (139) (28) (53,083)(100,497) (70) (31)
Rescissions (19) (231) (14) - (1,869) (809) - -
Bonus - - 2 - - - 3 -
Other transactions (note 2) 199 210 - - 91 636 - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions (22,205) (57,842) 333 359 (76,373) (81,899) 911 930
Increase (decrease) in net assets (8,572) (20,935) 366 411 (53,596) (33,663) 1,033 975
Net assets at beginning of period 190,494 211,429 411 - 420,387 454,050 975 -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $181,922 190,494 777 411 366,791 420,387 2,008 975
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
OPPENHEIMER GLOBAL OPPENHEIMER
SECURITIES FUND/VA HIGH INCOME FUND/VA
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $ (2) - - - (3) - - -
Realized gains (losses) on investments, net (3) - - - - - - -
Net change in unrealized appreciation
(depreciation) on investments (78) - - - 4 - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations (83) - - - 1 - - -
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 2,316 - - - 858 - - -
Transfers between funds 280 - - - 21 - - -
Surrenders and terminations (8) - - - (19) - - -
Rescissions (17) - - - - - - -
Bonus 107 - - - 42 - - -
Other transactions (note 2) 2 - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions 2,680 - - - 902 - - -
Increase (decrease) in net assets 2,597 - - - 903 - - -
Net assets at beginning of period - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $2,597 - - - 903 - - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
OPPENHEIMER PIMCO VIT
MAIN STREET GROWTH & INCOME FUND/VA HIGH YIELD PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $ (6) - - - (4) - - -
Realized gains (losses) on investments, net - - - - 1 - - -
Net change in unrealized appreciation
(depreciation) on investments (72) - - - (5) - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations (78) - - - (8) - - -
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 3,339 - - - 378 - - -
Transfers between funds 493 - - - 39 - - -
Surrenders and terminations (13) - - - - - - -
Rescissions (36) - - - - - - -
Bonus 170 - - - 1 - - -
Other transactions (note 2) - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions 3,953 - - - 418 - - -
Increase (decrease) in net assets 3,875 - - - 410 - - -
Net assets at beginning of period - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $3,875 - - - 410 - - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
PIMCO VIT PIMCO VIT
STOCKSPLUS GROWTH AND INCOME PORTFOLIO TOTAL RETURN BOND PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ - - - - (8) - - -
Realized gains (losses) on investments, net 1 - - - - - - -
Net change in unrealized appreciation
(depreciation) on investments (23) - - - 5 - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations (22) - - - (3) - - -
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 523 - - - 1,030 - - -
Transfers between funds 28 - - - 147 - - -
Surrenders and terminations - - - - (5) - - -
Rescissions (18) - - - - - - -
Bonus 19 - - - 63 - - -
Other transactions (note 2) - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions 552 - - - 1,235 - - -
Increase (decrease) in net assets 530 - - - 1,232 - - -
Net assets at beginning of period - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $530 - - - 1,232 - - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
SELIGMAN SELIGMAN
GLOBAL TECHNOLOGY FUND SMALL-CAP VALUE FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income (loss), net $ (7) - - - 1 - - -
Realized gains (losses) on investments, net (4) - - - 1 - - -
Net change in unrealized appreciation
(depreciation) on investments (408) - - - 10 - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations (419) - - - 12 - - -
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 3,600 - - - 958 - - -
Transfers between funds 388 - - - (7) - - -
Surrenders and terminations (38) - - - (5) - - -
Rescissions (58) - - - (1) - - -
Bonus 97 - - - 53 - - -
Other transactions (note 2) 7 - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions 3,996 - - - 998 - - -
Increase (decrease) in net assets 3,577 - - - 1,010 - - -
Net assets at beginning of period - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $3,577 - - - 1,010 - - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
TEMPLETON TEMPLETON DEVELOPING
ASSET STRATEGY FUND MARKETS SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $(460) 3,412 - 3 (289) 947 (2) (2)
Realized gains (losses) on investments,
net (590) 4,511 (1) 3 (4,718) (14,723) 228 263
Net change in unrealized appreciation
(depreciation) on investments (1,099) (4,595) (2) (2) (34,509) 81,897 (63) 18
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations (2,149) 3,328 (3) 4 (39,516) 68,121 163 279
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 790 2,689 30 49 1,488 3,440 370 286
Transfers between funds (4,445) (9,378) (17) (1) (6,700) (9,648) (304) (223)
Surrenders and terminations (7,926) (15,871) - - (26,754) (38,588) (32) -
Rescissions (39) (18) - - (165) (160) (6) -
Bonus - - - - - - 3 -
Other transactions (note 2) 76 82 - - 63 144 - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions (11,544) (22,496) 13 48 (32,068) (44,812) 31 63
Increase (decrease) in net assets (13,693) (19,168) 10 52 (71,584) 23,309 194 342
Net assets at beginning of period 57,892 77,060 52 - 179,097 155,788 342 -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $44,199 57,892 62 52 107,513 179,097 536 342
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
TEMPLETON GLOBAL TEMPLETON
INCOME SECURITIES FUND GROWTH SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $(619) 6,830 (3) 19 4,208 5,264 6 3
Realized gains (losses) on investments,
net (3,337) (2,393) (1) - 78,673 101,368 182 317
Net change in unrealized appreciation
(depreciation) on investments 1,489 (12,888) (14) (22) (113,471) 10,044 (112) 45
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations (2,467) (8,451) (18) (3) (30,590) 116,676 76 365
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 336 1,398 108 458 4,528 16,744 842 2,020
Transfers between funds (4,848) (8,236) - (14) (8,011) (13,275) (146) (128)
Surrenders and terminations (15,751) (39,664) (14) - (108,840)(161,240) (175) (873)
Rescissions (140) (419) - - (116) (482) (27) (59)
Bonus - - - - - - 8 -
Other transactions (note 2) 54 42 - - 52 420 - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions (20,349) (46,879) 94 444 (112,387)(157,833) 502 960
Increase (decrease) in net assets (22,816) (55,330) 76 441 (142,977) (41,157) 578 1,325
Net assets at beginning of period 81,224 136,554 441 - 667,351 708,508 1,325 -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $58,408 81,224 517 441 524,374 667,351 1,903 1,325
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
TEMPLETON TEMPLETON INTERNATIONAL
INTERNATIONAL SECURITIES FUND SMALLER COMPANIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $(6,185) 32,620 (37) 114 157 341 (2) (3)
Realized gains (losses) on investments,
net 170,977 79,885 555 926 229 (948) 235 137
Net change in unrealized appreciation
(depreciation) on investments (215,681) 51,890 (240) 120 (396) 4,893 (2) 2
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations (50,889) 164,395 278 1,160 (10) 4,286 231 136
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 2,633 5,997 459 2,908 309 527 133 52
Transfers between funds (7,555) (63,759) 1,706 (870) 1,859 (1,842) (231) (133)
Surrenders and terminations (128,896)(277,851) (218) - (3,862) (4,601) (22) -
Rescissions (450) (2,015) (6) - (32) (6) (6) -
Bonus - - - - - - - -
Other transactions (note 2) 137 1,165 (1,380) - 20 39 - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions (134,131)(336,463) 561 2,038 (1,706) (5,883) (126) (81)
Increase (decrease) in net assets (185,020)(172,068) 839 3,198 (1,716) (1,597) 105 55
Net assets at beginning of period 727,422 899,490 3,198 - 22,279 23,876 55 -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $542,402 727,422 4,037 3,198 20,563 22,279 160 55
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
TEMPLETON USALLIANZ VIP
PACIFIC GROWTH SECURITIES FUND DIVERSIFIED ASSETS FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C>
Investment income (loss), net $(673) (393) (2) - - - 40 -
Realized gains (losses) on investments,
net (5,441) (3,508) 86 38 - - (5) -
Net change in unrealized appreciation
(depreciation) on investments (9,213) 33,561 (23) 1 - - (79) 1
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations (15,327) 29,660 61 39 - - (44) 1
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 669 1,373 131 104 - - 302 -
Transfers between funds (4,676) (3,365) (111) (32) - - 1,662 102
Surrenders and terminations (15,698) (30,514) (37) - - - (127) -
Rescissions (26) (39) (6) - - - - -
Bonus - - 1 - - - 1 -
Other transactions (note 2) 46 32 - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions (19,684) (32,513) (22) 72 - - 1,838 102
Increase (decrease) in net assets (35,011) (2,853) 39 111 - - 1,794 103
Net assets at beginning of period 88,945 91,798 111 - - - 103 -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $53,934 88,945 150 111 - - 1,897 103
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
USALLIANZ VIP USALLIANZ VIP
FIXED INCOME FUND GLOBAL OPPORTUNITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $ - - 20 - - - (11) -
Realized gains (losses) on investments, net - - 18 - - - - -
Net change in unrealized appreciation
(depreciation) on investments - - (8) (2) - - (7) -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations - - 30 (2) - - (18) -
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments - - 95 - - - 90 -
Transfers between funds - - 889 131 - - 8 -
Surrenders and terminations - - (112) - - - - -
Rescissions - - - - - - - -
Bonus - - 5 - - - 2 -
Other transactions (note 2) - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions - - 877 131 - - 100 -
Increase (decrease) in net assets - - 907 129 - - 82 -
Net assets at beginning of period - - 129 - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ - - 1,036 129 - - 82 -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
USALLIANZ VIP USALLIANZ VIP
GROWTH FUND MONEY MARKET FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss), net $ - - 4 - - - 4 -
Realized gains (losses) on investments, net - - 7 - - - (1) -
Net change in unrealized appreciation
(depreciation) on investments - - (22) 14 - - (1) -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations - - (11) 14 - - 2 -
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments - - 193 - - - 8,819 -
Transfers between funds - - 909 325 - - (2,190) -
Surrenders and terminations - - (73) (8) - - (4) -
Rescissions - - - - - - (242) -
Bonus - - 5 - - - 398 -
Other transactions (note 2) - - 16 - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions - - 1,050 317 - - 6,781 -
Increase (decrease) in net assets - - 1,039 331 - - 6,783 -
Net assets at beginning of period - - 331 - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ - - 1,370 331 - - 6,783 -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
VAN KAMPEN LIT VAN KAMPEN LIT
ENTERPRISE PORTFOLIO GROWTH & INCOME PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2 CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operations:
Investment income (loss), net $ 2 - - - 3 - - -
Realized gains (losses) on investments, net 1 - - - - - - -
Net change in unrealized appreciation
(depreciation) on investments (30) - - - 37 - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations (27) - - - 40 - - -
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by
product):
Purchase payments 671 - - - 823 - - -
Transfers between funds 101 - - - 88 - - -
Surrenders and terminations (6) - - - (2) - - -
Rescissions - - - - (11) - - -
Bonus 34 - - - 45 - - -
Other transactions (note 2) 2 - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions 802 - - - 943 - - -
Increase (decrease) in net assets 775 - - - 983 - - -
Net assets at beginning of period - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $775 - - - 983 - - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1999 (IN THOUSANDS)
TOTAL ALL FUNDS
---------------------------------------------------------------------------------------------------------------------------
CLASS 1 CLASS 2
---------------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C>
Investment income (loss), net $ 93,467 345,556 413 637
Realized gains (losses) on investments, net 697,305 704,602 1,855 1,827
Net change in unrealized appreciation
(depreciation) on investments (675,402)(129,779) (307) 184
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 115,370 920,379 1,961 2,648
Contract transactions - All Products (See Notes 5, 6, 7, & 8 for detail by product):
Purchase payments 100,940 169,240 22,788 24,055
Transfers between funds 53,686 187,582 1,308 542
Surrenders and terminations (1,390,545)(2,732,370) (2,588) (3,198)
Rescissions (7,553) (10,614) (400) (333)
Bonus 1,533 - 611 -
Other transactions (note 2) 11,371 14,458 69 -
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from contract transactions (1,230,569)(2,371,704) 21,788 21,066
Increase (decrease) in net assets (1,115,199)(1,451,325) 23,749 23,714
Net assets at beginning of period 7,692,2109,143,535 23,714 -
---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $6,577,0117,692,210 47,463 23,714
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT B
of Allianz Life Insurance Company of North America
Notes to Financial Statements
September 30, 2000 (unaudited)
1. Organization
Allianz Life Variable Account B (Variable Account) is a segregated investment
account of Allianz Life Insurance Company of North America (Allianz Life) and is
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 January 24, 1989. 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
annuity contracts 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 select portfolios of AIM Variable Insurance Funds, Inc., The Alger
American Fund, Davis Variable Account Fund, Inc., Franklin Templeton Variable
Insurance Products Trust (formerly, Franklin Valuemark Funds), J.P. Morgan
Series Trust II, Oppenheimer Variable Account Funds, PIMCO Insurance Trust,
Seligman Portfolios, Inc., USAllianz Variable Insurance Products Trust, and Van
Kampen Life Investment Trust, in accordance with the selection made by the
contract owner. Not all portfolios are available as investment options for the
products which comprise the Variable Account. The investment advisers for each
portfolio are listed in the following table.
Portfolio Investment Adviser
-------------------------------------------------------------------
AIM VI Capital Appreciation Fund AIM Advisors, Inc.
AIM VI Growth Fund AIM Advisors, Inc.
AIM VI International Equity Fund AIM Advisors, Inc.
AIM VI Value Fund AIM Advisors, Inc.
Alger American Growth Portfolio Fred Alger Management, Inc.
Alger American Leveraged AllCap Portfolio Fred Alger Management, Inc.
Alger American MidCap Growth Portfolio Fred Alger Management, Inc.
Alger American Small Capitalization Portfolio Fred Alger Management, Inc.
Davis VA Financial Portfolio Davis Selected Advisers, LP
Davis VA Real Estate Portfolio Davis Selected Advisers, LP
Davis VA Value Portfolio Davis Selected Advisers, LP
Franklin Aggressive Growth Securities Fund Franklin Advisory Services, LLC
Franklin Global Communications Securities Fund Franklin Advisers, Inc.
Franklin Global Health Care Securities Fund Franklin Advisers, Inc.
Franklin Growth and Income Fund Franklin Advisers, Inc.
Franklin High Income Fund Franklin Advisers, Inc.
Franklin Income Securities Fund Franklin Advisers, Inc.
Franklin Large Cap Growth Securities Fund Franklin Advisers, Inc.
Franklin Money Market Fund Franklin Advisers, Inc.
Franklin Natural Resources Securities Fund Franklin Advisers, Inc.
Franklin Real Estate Fund Franklin Advisers, Inc.
Franklin Rising Dividends Securities Fund Franklin Advisory Services, LLC
Franklin S&P 500 Index Fund Franklin Advisers, Inc.
Franklin Small Cap Fund Franklin Advisers, Inc.
Franklin Technology Securities Fund Franklin Advisers, Inc.
Franklin U.S. Government Fund Franklin Advisory Services, LLC
Franklin Value Securities Fund Franklin Advisory Services, LLC
Franklin Zero Coupon - 2000 Fund Franklin Advisers, Inc.
Franklin Zero Coupon - 2005 Fund Franklin Advisers, Inc.
Franklin Zero Coupon - 2010 Fund Franklin Advisers, Inc.
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
<TABLE>
<CAPTION>
1. Organization (Continued)
Portfolio (Continued) Investment Adviser (Continued)
---------------------------------------------------------------------------------------
<S> <C>
J.P. Morgan International Opportunities Portfolio J.P. Morgan Investment Management Inc.
J.P. Morgan US Disciplined Equity Portfolio J.P. Morgan Investment Management Inc.
Mutual Discovery Securities Fund Franklin Mutual Advisers, LLC
Mutual Shares Securities Fund Franklin Mutual Advisers, LLC
Oppenheimer Global Securities Fund/VA OppenheimerFunds, Inc.
Oppenheimer High Income Fund/VA OppenheimerFunds, Inc.
Oppenheimer Main Street Growth & Income Fund/VA OppenheimerFunds, Inc.
PIMCO VIT High Yield Bond Portfolio Pacific Investment Management Company
PIMCO VIT StocksPLUS Growth and Income Portfolio Pacific Investment Management Company
PIMCO VIT Total Return Bond Portfolio Pacific Investment Management Company
Seligman Global Technology Fund J & W Seligman & Co. Inc.
Seligman Small Cap Value Fund J & W Seligman & Co. Inc.
Templeton Asset Strategy Fund Templeton Global Advisors Limited
Templeton Developing Markets Securities Fund Templeton Asset Management Ltd.
Templeton Global Income Securities Fund Franklin Advisers, Inc.
Templeton Growth Securities Fund Templeton Global Advisors Limited
Templeton International Securities Fund Franklin Advisers, Inc.
Templeton International Smaller Companies Fund Templeton Investment Counsel, Inc.
Templeton Pacific Growth Securities Fund Franklin Advisers, Inc.
USAllianz VIP Diversified Assets Fund Allianz of America, Inc.
USAllianz VIP Fixed Income Fund Allianz of America, Inc.
USAllianz VIP Global Opportunities Fund Allianz of America, Inc.
USAllianz VIP Growth Fund Allianz of America, Inc.
USAllianz VIP Money Market Fund Allianz of America, Inc.
Van Kampen LIT Enterprise Portfolio Van Kampen Asset Management, Inc.
Van Kampen LIT Enterprise Portfolio Van Kampen Asset Management, Inc.
</TABLE>
2. Significant Accounting Policies
Certain of the Franklin Templeton and USAllianz Variable Insurance Products
Trust portfolios have class 2 shares which are available to Valuemark Charter,
USAllianz Alterity and USAllianz Rewards contract owners.
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 the investment advisers of the portfolios.
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
2. Significant Accounting Policies (Continued)
Realized investment gains include realized gain distributions received from the
respective portfolios and gains on the sale of portfolio shares as determined by
the average cost method. Realized gain distributions are reinvested in the
respective portfolios. Dividend distributions received from the portfolios are
reinvested in additional shares of the portfolios and are recorded as income to
the Variable Account on the ex-dividend date.
Two Fixed Account investment options are available to deferred annuity contract
owners. A Flexible Fixed Option is available to all deferred annuity contract
owners and a Dollar Cost Averaging Option is available to Valuemark II,
Valuemark III, Valuemark IV, and USAllianz Alterity deferred annuity contract
owners. These accounts are comprised of equity and fixed income investments
which are part of the general assets of Allianz Life. The liabilities of the
Fixed Accounts 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 Accounts is 3%.
On November 12, 1999, the AIM VI Growth Fund, Alger American Growth Fund, Alger
American Leveraged AllCap Fund, Franklin S&P 500 Index Fund, USAllianz VIP
Diversified Assets Fund, USAllianz VIP Fixed Income Fund, and USAllianz VIP
Growth Fund were added as available investment options.
On February 1, 2000, the funds in the following table were added as available
investment options for USAllianz Alterity.
<TABLE>
<CAPTION>
<S> <C>
AIM VI Capital Appreciation Fund Oppenheimer High Income Fund/VA
AIM VI International Equity Fund Oppenheimer Main Street Growth and Income Fund/VA
AIM VI Value Fund PIMCO VIT High Yield Bond Portfolio
Alger American MidCap Growth Portfolio PIMCO VIT StocksPLUS Growth and Income Portfolio
Alger American Small Capitalization Portfolio PIMCO VIT Total Return Bond Portfolio
Davis VA Financial Portfolio Seligman Global Technology Fund
Davis VA Real Estate Portfolio Seligman Small-Cap Value Fund
Davis VA Value Portfolio USAllianz VIP Global Opportunities Fund
J.P. Morgan International Opportunities Portfolio USAllianz VIP Money Market Fund
J.P. Morgan US Disciplined Equity Portfolio Van Kampen LIT Enterprise Fund
Oppenheimer Global Securities Fund/VA Van Kampen LIT Growth and Income Fund
</TABLE>
On May 1, 2000, the Franklin Aggressive Growth Securities Fund and Franklin
Technology Securities Fund were added as available investment options for
Valuemark II, III and IV.
<PAGE>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
2. Significant Accounting Policies (Continued)
Contracts in Annuity Payment Period
Annuity reserves are computed for currently payable contracts according to the
1983 Individual Annuity Mortality Table, using an assumed investment return
(AIR) equal to the AIR of the specific contracts, either 3%, 5%, or 7%. Charges
to annuity reserves for mortality and risk expense are reimbursed to Allianz
Life if the reserves required are less than originally estimated. If additional
reserves are required, Allianz Life reimburses the account.
Premium Bonus
A premium bonus is awarded to the contract owner of the USAllianz Rewards
product at the time of deposit. The bonus paid is based on the following
schedule.
Net Deposit Bonus Paid
------------------------------------
$15,000 to 24,999 4%
$25,000 to 99,999 5%
$100,000 to 999,999 6%
$1,000,000 to 4.999 million 7%
$5,000,000 or more 8%
The bonus is vested over three years, therefore if the contract owner surrenders
the policy before the full vesting period a portion of the bonus can be lost.
The accumulated gain/loss on the bonus is 100% vested as it is earned. The
vesting rates are presented in the following schedule.
Months following Deposit Amount Vested
--------------------------------------
0 to 12 0%
13 to 24 35%
25 to 36 70%
37+ 100%
Expenses
Asset Based Expenses
A mortality and expense risk charge and an administrative charge are deducted
from the Variable Account on a daily basis. The charges, on an annual basis, are
summarized in the following table.
Mortality and Expense Administrative
Contract Risk Charge Charge
--------------------------------------------------------------------
USAllianz Alterity - Traditional 1.25% 0.15%
USAllianz Alterity - Optional 1.55% 0.15%
USAllianz Alterity - Enhanced 1.75% 0.15%
USAllianz Rewards - Traditional 1.50% 0.15%
USAllianz Rewards - Enhanced 1.70% 0.15%
Valuemark II 1.25% 0.15%
Valuemark III 1.25% 0.15%
Valuemark IV 1.34% 0.15%
Valuemark Charter - Traditional 1.00% 0.15%
Valuemark Charter - Enhanced 1.20% 0.15%
Valuemark Income Plus 1.25% 0.15%
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
2. Significant Accounting Policies (Continued)
Contract Based Expenses
A contract maintenance charge is paid by the contract owner annually from each
deferred annuity contract by liquidating contract units at the end of the
contract year and at the time of full surrender. The amount of the charge is $30
each year for Valuemark II, Valuemark III, and Valuemark IV contracts and $40
for Valuemark Charter, USAllianz Alterity and USAllianz Rewards contracts.
Contract maintenance charges paid by the contract owners during the nine-month
period ended September 30, 2000 (unaudited) and the year ended December 31, 1999
were $2,562,171 and $4,426,312, respectively. These contract charges are
reflected in the Statements of Changes in Net Assets as other transactions.
A contingent deferred sales charge is deducted from the contract value at the
time of surrender on Valuemark II, Valuemark III, Valuemark IV, USAllianz
Alterity and USAllianz Rewards deferred annuity contracts. The amount of the
contingent deferred sales charge is shown below.
<TABLE>
<CAPTION>
Contingent Deferred Sales Charge
_______________________________________________________________________________________
----------------------------------------------------------------------------------------------------
Years Since
Payment Valuemark II Valuemark III Valuemark IV USAllianz Alterity USAllianz Rewards
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
0-1 5% 6% 6% 7% 8.5%
1-2 5% 5% 6% 6% 8.5%
2-3 4% 4% 6% 5% 8.5%
3-4 3% 3% 5% 4% 8.5%
4-5 1.5% 1.5% 4% 3% 8%
5-6 0% 0% 3% 0% 7%
6-7 - - 2% - 5%
7-8 - - 0% - 4%
8-9 - - - - 3%
9-10 - - - - 0%
10+ - - - - -
</TABLE>
Total contingent deferred sales charges paid by the contract owners during the
nine-month period ended September 30, 2000 (unaudited) and the year ended
December 31, 1999 were $8,450,269 and $16,657,195, respectively.
A systematic withdrawal plan is available to Valuemark II, Valuemark III,
Valuemark IV, USAllianz Alterity, and USAllianz Rewards deferred annuity
contract owners which allows a portion of the contract value to be withdrawn
without incurring a contingent deferred sales charge. The exercise of the
systematic withdrawal plan in any contract year replaces the penalty free
privilege for that year.
Currently, twelve transfers are permitted each contract year. Thereafter, the
fee is $25 per transfer for all products, or 2% of the amount transferred, if
less, for Valuemark II, Valuemark III, and Valuemark IV. Currently, transfers
associated with any dollar cost averaging program are not counted. Total
transfer charges paid by the contract owners during the nine-month period ended
September 30, 2000 (unaudited) and the year ended December 31, 1999 were
$111,910 and $153,188, respectively. Transfer charges are reflected in the
Statements of Changes in Net Assets as other transactions. Net transfers from
the Fixed Accounts for the nine-month period ended September 30, 2000
(unaudited) and the year ended December 31, 1999 were $54,994,115 and
$188,123,947, respectively.
<PAGE>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
2. Significant Accounting Policies (Continued)
Premium taxes or other taxes payable to a state or other governmental entity
will be charged against the contract values. Allianz Life may, in its sole
discretion, pay taxes when due and deduct that amount from the contract value at
a later date. Payment at an earlier date does not waive any right Allianz Life
may have to deduct such amounts at a later date.
A rescission is defined as a contract that is returned to the Company by the
Contract Owner and canceled within the free-look period, generally within 10
days.
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.
Allianz Life does not expect to incur any federal income taxes in the operation
of the Variable Account. If, in the future, Allianz Life determines that the
Variable Account may incur federal income taxes, it may then assess a charge
against the Variable Account for such taxes..
<PAGE>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
4. Purchases and Sales of Investments (in thousands)
The cost of purchases and proceeds from sales of investment for the nine-month
period ended September 30, 2000 (unaudited) are as follows:.
<TABLE>
<CAPTION>
Cost of Proceeds from
Purchases Sales
______________ ______________
-----------------------------------------------------------------------------------------------
<S> <C> <C>
Aim V.I. Capital Appreciation Fund $ 4,039 $ 60
Aim V.I. Growth Fund 57,343 3,728
Aim V.I. International Equity Fund 1,757 36
Aim V.I. Value Fund 2,809 59
Alger American Growth Portfolio 45,230 9,131
Alger American Leveraged AllCap Portfolio 30,168 9,985
Alger American MidCap Growth Portfolio 2,587 8
Alger American Small Capitalization Portfolio 585 4
Davis VA Financial Portfolio 660 23
Davis VA Real Estate Portfolio 1,239 262
Davis VA Value Portfolio 1,504 130
Franklin Aggressive Growth Securities Fund 9,806 916
Franklin Global Communications Securities Fund 685,201 145,690
Franklin Global Health Care Securities Fund 26,909 9,716
Franklin Growth and Income Securities Fund 709,726 226,012
Franklin High Income Fund 249,650 125,757
Franklin Income Securities Fund 639,000 195,357
Franklin Large Cap Growth Securities Fund 310,932 55,737
Franklin Money Market Fund 263,851 1,026,397
Franklin Natural Resources Securities Fund 35,496 23,489
Franklin Real Estate Fund 150,626 45,583
Franklin Rising Dividends Securities Fund 349,886 122,656
Franklin S&P 500 Index Fund 42,215 12,024
Franklin Small Cap Fund 302,295 192,503
Franklin Technology Securities Fund 9,201 788
Franklin U.S. Government Fund 404,744 107,618
</TABLE>
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
4. Purchases and Sales of Investments (in thousands) (continued)
<TABLE>
<CAPTION>
Cost of Proceeds from
Purchases Sales
______________ ______________
-----------------------------------------------------------------------------------------------
<S> <C> <C>
Franklin Value Securities Fund $ 13,556 $ 8,976
Franklin Zero Coupon - 2000 49,094 15,877
Franklin Zero Coupon - 2005 52,511 13,027
Franklin Zero Coupon - 2010 53,934 29,902
J.P. Morgan International Opportunities Fund 324 3
J.P. Morgan U.S. Disciplined Equity Fund 556 1
Mutual Discovery Securities Fund 151,867 30,840
Mutual Shares Securities Fund 320,650 87,482
Oppenheimer Global Securities Fund/VA 2,677 52
Oppenheimer High Income Fund/VA 902 31
Oppenheimer Main Street Growth and Income Fund/VA 3,953 44
PIMCO VIT High Yield Bond Portfolio 423 9
PIMCO VIT StocksPLUS Growth and Income Portfolio 553 45
PIMCO VIT Total Return Bond Portfolio 1,231 15
Seligman Global Technology Fund 3,993 74
Seligman Small-Cap Value Fund 1,000 36
Templeton Asset Strategy Fund 47,081 13,274
Templeton Developing Markets Securities Fund 131,498 129,116
Templeton Global Income Securities Fund 68,486 22,241
Templeton Growth Securities Fund 520,668 205,624
Templeton International Securities Fund 614,568 447,941
Templeton International Smaller Companies Fund 20,650 62,899
Templeton Pacific Growth Securities Fund 58,853 292,710
USAllianz VIP Diversified Assets Fund 1,981 174
USAllianz VIP Fixed Fund 1,055 8,301
USAllianz VIP Global Opportunities Fund 89 4
USAllianz VIP Growth Fund 1,389 190
USAllianz VIP Money Market Fund 6,783 2,600
Van Kampen LIT Enterprise Portfolio 803 6
Van Kampen LIT Growth and Income Portfolio 942 12
______________ ______________
-----------------------------------------------------------------------------------------------
Total $ 6,469,528 $ 3,685,169
______________ ______________
-----------------------------------------------------------------------------------------------
______________ ______________
-----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ALLIANZ LIFE VARIABLE ACCOUNT B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
5. CONTRACT TRANSACTIONS - Valuemark II, III, and IV Accumulation DOLLAR AND
Unit Activity (In thousands)
Transactions in dollars and units for each fund for the nine-month period ended
September 30, 2000 (unaudited) and the year ended December 31, 1999 were as
follows:
<TABLE>
<CAPTION>
FRANKLIN
AIM V.I. ALGER AMERICAN ALGER AMERICAN AGGRESSIVE GROWTH
GROWTH FUND GROWTH FUND LEVERAGED ALLCAP FUNDSECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Valuemark II & III Contract transactions - 1999:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 27 3 $ 6 1 $ 1 - $ - -
Transfers between funds 5,530 529 5,632 539 3,765 341 - -
Surrenders and terminations (61) (6) (3) - (9) (1) - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $5,496 526 $ 5,635 540 $3,757 340 $ - -
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
PURCHASE PAYMENTS $ 785 67 $ 281 25 $ 192 15 $ 27 2
Transfers between funds 26,518 2,260 17,769 1,595 11,213 819 6,684 561
Surrenders and terminations (2,836) (253) (2,032) (192) (1,439) (119) (79) (7)
Rescissions (165) (14) (11) (1) - - - -
Bonus - - - - - - - -
Other transactions (3) - 2 - 4 - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $24,299 2,060 $16,009 1,427 $9,970 715 $6,632 556
---------------------------------------------------------------------------------------------------------------------------
Valuemark IV Contract transactions - 1999:
Purchase payments $ 50 5 $ 215 20 $ 8 1 $ - -
Transfers between funds 3,764 360 4,119 396 3,078 277 - -
Surrenders and terminations (18) (2) (10) (1) (9) (1) - -
RESCISSIONS - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $3,796 363 $ 4,324 415 $3,077 277 $ - -
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $1,568 136 $ 873 78 $ 576 45 $ 364 32
Transfers between funds 19,925 1,717 12,412 1,123 9,433 733 2,841 245
Surrenders and terminations (1,608) (140) (1,310) (118) (1,114) (92) (13) (1)
Rescissions (1) - - - - - - -
Bonus - - - - - - - -
OTHER TRANSACTIONS 41 4 14 1 15 1 - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $19,925 1,717 $11,989 1,084 $8,910 687 $3,192 276
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
5. CONTRACT TRANSACTIONS - Valuemark II, III, and IV Accumulation DOLLAR AND
Unit Activity (In thousands) (CONTINUED)
Franklin Global Franklin Global Franklin Franklin
Communications Health Care Growth and High
Securities Fund Securities Fund Income Fund Income Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Valuemark II & III Contract transactions - 1999:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 3,272 96 $ 103 11 $ 8,279 191 $ 1,791 69
Transfers between funds (24,958) (870) 3,399 351 (16,044) (589) (18,484) (851)
SURRENDERS AND TERMINATIONS (250,550) (8,394) (2,835) (314) (331,869) (12,443) (100,108) (4,711)
Rescissions (386) (12) (2) - (714) (27) (186) (9)
Bonus - - - - - - - -
Other transactions 476 16 (3) - 585 22 173 8
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $(272,146) (9,164) $662 48 $(339,763) (12,846) $(116,814) (5,494)
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 1,968 43 $ 144 11 $ 2,256 64 $ 644 25
Transfers between funds 6,981 126 11,530 892 (39,923) (1,547) (15,508) (747)
SURRENDERS AND TERMINATIONS (138,194) (3,608) (2,048) (159) (150,485) (5,707) (45,644) (2,211)
Rescissions (394) (10) (43) (3) (151) (6) (43) (2)
Bonus - - - - - - - -
Other transactions 168 5 (5) - 593 22 96 5
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $(129,470) (3,444) $9,578 741 $(187,710) (7,174) $(60,454) (2,930)
---------------------------------------------------------------------------------------------------------------------------
Valuemark IV Contract transactions - 1999:
Purchase payments $ 3,917 118 $ 502 55 $11,510 390 $ 7,857 366
TRANSFERS BETWEEN FUNDS 13,001 433 2,077 220 18,552 696 2,895 140
Surrenders and terminations (4,391) (138) (267) (30) (18,769) (699) (11,650) (550)
Rescissions (16) (1) (2) - (127) (5) (890) (42)
Bonus - - - - - - - -
Other transactions 1 - - - 78 3 277 13
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $12,512 412 $ 2,310 245 $11,244 385 $(1,511) (73)
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 2,128 56 $ 646 48 $ 1,868 71 $ 1,044 51
TRANSFERS BETWEEN FUNDS 10,813 271 5,893 445 (8,590) (345) (10,433) (506)
Surrenders and terminations (4,751) (127) (767) (60) (13,745) (530) (8,244) (405)
Rescissions (69) (2) - - (36) (2) (161) (8)
Bonus - - - - - - - -
Other transactions 2 - 1 - 65 2 82 4
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $8,123 198 $5,773 433 $(20,438) (804) $(17,712) (864)
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
5. CONTRACT TRANSACTIONS: - VALUEMARK II, III, AND IV ACCUMULATION DOLLAR AND UNIT ACTIVITY (IN THOUSANDS) (CONTINUED)
Franklin Franklin Large Franklin Franklin
Income Cap Growth Money Market Natural Resources
Securities Fund Securities Fund Fund Securities Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
VALUEMARK II & III Contract transactions - 1999:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 4,169 123 $ 3,422 149 $ 7,896 180 $ 315 33
Transfers between funds (69,103) (2,779) 117,374 7,093 194,558 13,480 (5,419) (549)
Surrenders and terminations (294,539) (11,825) (81,624) (4,823) (276,520) (18,739) (9,951) (992)
Rescissions (1,016) (41) (255) (15) (187) (13) (65) (6)
Bonus - - - - - - - -
Other transactions 767 31 151 9 6,553 448 11 1
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $(359,722) (14,491) $39,068 2,413 $(67,700) (4,644) $(15,109) (1,513)
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
PURCHASE PAYMENTS $ 1,405 44 $ 2,088 67 $ 4,722 71 $ 104 8
Transfers between funds (36,899) (1,477) 38,566 1,773 32,572 1,970 663 52
Surrenders and terminations (129,589) (5,086) (44,201) (2,002) (119,263) (7,480) (6,693) (540)
Rescissions (320) (13) (34) (2) (865) (58) - -
Bonus - - - - - - - -
Other transactions 115 5 440 22 4,407 292 7 -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $(165,288) (6,527) $(3,141) (142) $(78,426) (5,205)$ (5,919) (480)
---------------------------------------------------------------------------------------------------------------------------
Valuemark IV Contract transactions - 1999:
Purchase payments $ 9,595 367 $10,004 584 $12,863 690 $ 459 45
Transfers between funds 5,898 239 59,488 3,598 25,077 1,872 923 123
Surrenders and terminations (11,956) (463) (20,335) (1,175) (25,510) (1,698) (618) (61)
Rescissions (122) (5) (56) (4) (49) (3) (57) (5)
Bonus - - - - - - - -
Other transactions 64 3 258 16 470 33 (2) -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ 3,479 141 $49,359 3,019 $12,851 894 $ 705 102
---------------------------------------------------------------------------------------------------------------------------
CONTRACT TRANSACTIONS - 2000 (UNAUDITED):
Purchase payments $ 1,375 54 $ 2,684 124 $ 4,266 286 $ 382 30
Transfers between funds (10,426) (428) 21,777 1,013 (5,762) (401) 496 35
Surrenders and terminations (9,606) (381) (14,489) (668) (15,865) (1,063) (615) (49)
Rescissions (223) (9) (231) (11) (181) (12) - -
Bonus - - - - - - - -
Other transactions 92 4 103 5 756 51 (2) -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $(18,788) (760) $9,844 463 $(16,786) (1,139) $261 16
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
5. CONTRACT TRANSACTIONS: - VALUEMARK II, III, AND IV ACCUMULATION DOLLAR AND UNIT ACTIVITY (IN THOUSANDS) (CONTINUED)
Franklin Franklin Franklin Franklin
Real Estate Rising Dividends S&P 500 Small Cap
Fund Securities Fund Index Fund Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
VALUEMARK II & III Contract transactions - 1999:
<S> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 790 29 $ 2,867 105 $ 5 - $ 1,798 96
Transfers between funds (29,234) (1,316) (38,032) (1,898) 7,594 745 8,311 38
Surrenders and terminations (66,788) (2,940) (174,156) (8,633) (181) (18) (72,615) (4,346)
Rescissions (283) (13) (316) (16) - - (139) (8)
Bonus - - - - - - - -
Other transactions 46 2 221 11 - - 302 18
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $(95,469) (4,238) $(209,416) (10,431)$ 7,418 727 $(62,343) (4,202)
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 381 15 $ 928 38 $ 489 45 $ 2,037 56
Transfers between funds (6,051) (277) (29,717) (1,582) 20,812 2,001 14,220 441
Surrenders and terminations (26,413) (1,124) (69,484) (3,663) (3,790) (367) (52,185) (1,722)
Rescissions (85) (4) (140) (7) (43) (4) (66) (2)
Bonus - - - - - - - -
OTHER TRANSACTIONS 54 2 172 9 27 3 88 3
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $(32,114) (1,388) $(98,241) (5,205) $17,496 1,678 $(35,906) (1,224)
---------------------------------------------------------------------------------------------------------------------------
Valuemark IV Contract transactions - 1999:
Purchase payments $ 1,696 73 $ 5,964 284 $ 274 26 $ 4,252 243
Transfers between funds (4,570) (216) (282) (31) 6,114 601 6,853 269
Surrenders and terminations (4,367) (191) (11,026) (544) (10) (1) (9,570) (546)
Rescissions (7) - (111) (6) - - (56) (4)
Bonus - - - - - - - -
Other transactions 26 1 115 6 - - 112 6
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $(7,222) (333) $(5,340) (291) $6,378 626 $ 1,591 (32)
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 1,609 68 $ 694 37 $ 1,282 124 $ 4,123 141
Transfers between funds (1,798) (90) (10,740) (588) 11,029 1,070 13,776 446
Surrenders and terminations (2,547) (109) (6,813) (364) (1,078) (104) (10,895) (364)
Rescissions (20) (1) (29) (2) (2) - (102) (4)
Bonus - - - - - - - -
Other transactions (4) - 20 1 23 2 (13) (1)
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $(2,760) (132) $(16,868) (916) $11,254 1,092 $6,889 218
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
5. CONTRACT TRANSACTIONS: - VALUEMARK II, III, AND IV ACCUMULATION DOLLAR AND UNIT ACTIVITY (IN THOUSANDS) (CONTINUED)
Franklin Franklin Franklin Franklin
Technology U.S. Government Value Zero Coupon
Securities Fund Fund Securities Fund Fund - 2000
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
VALUEMARK II & III Contract transactions - 1999:
<S> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ - - $ 2,444 130 $ 326 12 $ 183 9
Transfers between funds - - (16,017) (857) 2,439 332 (1,531) (74)
Surrenders and terminations - - (165,246) (8,796) (2,562) (336) (20,544) (989)
Rescissions - - (1,028) (55) (1) - (4) -
Bonus - - - - - - - -
Other transactions - - 294 16 (2) - 117 6
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ - - $(179,553) (9,562) $ 200 8 $(21,779) (1,048)
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
PURCHASE PAYMENTS $ 33 3 $ 1,259 67 $ 71 4 $ 147 7
Transfers between funds 5,044 432 (13,577) (725) 45 17 (2,168) (102)
Surrenders and terminations (185) (15) (75,487) (3,991) (2,229) (275) (11,757) (551)
Rescissions (85) (8) (91) (5) (30) (4) - -
Bonus - - - - - - - -
Other transactions - - 124 7 3,038 403 16 1
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $4,807 412 $(87,772) (4,647) $ 895 145 $(13,762) (645)
---------------------------------------------------------------------------------------------------------------------------
Valuemark IV Contract transactions - 1999:
PURCHASE PAYMENTS $ - - $ 7,769 407 $ 715 80 $ 340 16
Transfers between funds - - 15,383 826 1,785 221 2,017 98
Surrenders and terminations - - (7,818) (418) (521) (66) (406) (20)
Rescissions - - (156) (8) (1) - (8) -
Bonus - - - - - - - -
Other transactions - - 195 10 6 1 3 -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ - - $15,373 817 $1,984 236 $ 1,946 94
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
PURCHASE PAYMENTS $ 257 23 $ 916 49 $ 256 32 $ 3 -
Transfers between funds 4,182 364 (1,308) (69) 1,718 219 (884) (42)
Surrenders and terminations (73) (7) (6,112) (325) (448) (56) (617) (29)
Rescissions - - (380) (20) (1) - - -
Bonus - - - - - - - -
Other transactions - - 57 3 8 1 - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $4,366 380 $(6,827) (362) $1,533 196 $(1,498) (71)
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
5. CONTRACT TRANSACTIONS: - VALUEMARK II, III, AND IV ACCUMULATION DOLLAR AND UNIT ACTIVITY (IN THOUSANDS) (CONTINUED)
FRANKLIN FRANKLIN MUTUAL MUTUAL
ZERO COUPON ZERO COUPON DISCOVERY SHARES
FUND - 2005 FUND - 2010 SECURITIES FUND SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Valuemark II & III Contract transactions - 1999:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 215 9 $ 206 8 $ 889 56 $ 2,270 134
Transfers between funds (950) (40) 225 1 (9,239) (849) 261 (64)
Surrenders and terminations (14,198) (595) (19,296) (749) (37,626) (3,134) (73,031) (5,759)
Rescissions (15) (1) (7) - (62) (5) (653) (52)
Bonus - - - - - - - -
Other transactions 71 3 230 9 110 10 389 31
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $(14,877) (624) $(18,642) (731) $(45,928) (3,922) $(70,764) (5,710)
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 59 2 $ 56 2 $ 410 23 $ 850 51
Transfers between funds (1,887) (81) (2,464) (106) 3,124 183 (8,504) (659)
Surrenders and terminations (7,900) (335) (9,213) (369) (16,924) (1,148) (32,285) (2,399)
Rescissions - - - - (2) - (1,665) (126)
Bonus - - - - - - - -
Other transactions (8) - (6) - 14 1 20 2
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $(9,736) (414) $(11,627) (473) $(13,378) (941) $(41,585) (3,131)
---------------------------------------------------------------------------------------------------------------------------
Valuemark IV
CONTRACT TRANSACTIONS - 1999:
Purchase payments $ 1,585 66 $ 2,411 92 $ 3,851 317 $ 9,961 780
Transfers between funds 3,627 152 3,934 152 (3,004) (273) 6,279 461
Surrenders and terminations (1,004) (43) (1,316) (51) (12,692) (1,040) (27,466) (2,158)
Rescissions (89) (4) (84) (3) (169) (14) (156) (12)
Bonus - - - - - - - -
Other transactions 89 4 5 - 100 8 247 19
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ 4,208 175 $ 4,950 190 $(11,914) (1,002) $(11,135) (910)
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
PURCHASE PAYMENTS $ 36 2 $ 400 16 $ 684 48 $ 2,258 169
Transfers between funds (419) (19) (1,528) (60) (866) (59) (16,115) (1,235)
Surrenders and terminations (739) (32) (1,117) (45) (8,813) (614) (20,798) (1,566)
Rescissions - - (2) - (17) (1) (204) (16)
Bonus - - - - - - - -
Other transactions (1) - 1 - 185 13 71 6
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $(1,123) (49) $(2,246) (89) $(8,827) (613) $(34,788)(2,642)
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
5. CONTRACT TRANSACTIONS: - VALUEMARK II, III, AND IV ACCUMULATION DOLLAR AND UNIT ACTIVITY (IN THOUSANDS) (CONTINUED)
Templeton Templeton Templeton Templeton
Asset Strategy Developing Markets Global Income Growth
Fund Securities Fund Securities Fund Securities Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Valuemark II & III
CONTRACT TRANSACTIONS - 1999:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 577 21 $ 1,065 106 $ 372 22 $ 3,910 176
Transfers between funds (8,133) (601) (9,812) (1,139) (8,997) (528) (21,594) (1,329)
Surrenders and terminations (13,638) (974) (35,896) (3,728) (38,030) (2,221) (143,382) (8,200)
Rescissions (16) (1) (154) (15) (414) (25) (338) (19)
Bonus - - - - - - - -
Other transactions 43 3 131 13 37 2 309 18
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $(21,167) (1,552) $(44,666) (4,763) $(47,032) (2,750) $(161,095) (9,354)
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 233 12 $ 448 34 $ 219 13 $ 1,804 87
TRANSFERS BETWEEN FUNDS (1,824) (126) (7,057) (646) (4,046) (270) (10,045) (551)
Surrenders and terminations (6,388) (439) (23,363) (2,157) (14,565) (870) (93,707) (4,981)
Rescissions (39) (3) (129) (11) (76) (5) (46) (3)
Bonus - - - - - - - -
Other transactions 47 3 49 4 46 3 26 1
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $(7,971) (553) $(30,052) (2,776) $(18,422) (1,129) $ (101,968)(5,447)
---------------------------------------------------------------------------------------------------------------------------
Valuemark IV Contract transactions - 1999:
Purchase payments $ 2,112 146 $ 2,375 232 $ 1,026 58 $12,834 706
TRANSFERS BETWEEN FUNDS (1,245) (90) 164 1 761 44 8,319 454
Surrenders and terminations (2,233) (147) (2,692) (269) (1,634) (96) (17,858) (1,013)
Rescissions (2) - (6) (1) (5) - (144) (9)
Bonus - - - - - - - -
Other transactions 39 3 13 1 5 - 111 6
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $(1,329) (88) $ (146) (36) $ 153 6 $ 3,262 144
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 557 40 $ 1,040 94 $ 117 7 $ 2,724 147
TRANSFERS BETWEEN FUNDS (2,621) (189) 357 4 (802) (49) 2,034 108
Surrenders and terminations (1,538) (110) (3,391) (320) (1,186) (74) (15,133) (811)
Rescissions - - (36) (4) (64) (4) (70) (4)
Bonus - - - - - - - -
Other transactions 29 2 14 1 8 1 26 1
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $(3,573) (257) $(2,016) (225) $(1,927) (119) $(10,419) (559)
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
5. CONTRACT TRANSACTIONS: - VALUEMARK II, III, AND IV ACCUMULATION DOLLAR AND UNIT ACTIVITY (IN THOUSANDS) (CONTINUED)
Templeton Templeton Templeton USAllianz VIP
International International Smaller Pacific Growth Diversified Assets
Securities Fund Companies Fund Securities Fund Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Valuemark II & III
CONTRACT TRANSACTIONS - 1999:
<S> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 2,621 122 $ 115 7 $ 738 69 $ - -
Transfers between funds (63,288) (3,285) (1,461) (163) (6,774) (499) 88 9
Surrenders and terminations (269,672) (13,737) (3,584) (347) (29,719) (3,171) - -
Rescissions (1,975) (99) (3) - (36) (4) - -
Bonus - - - - - - - -
Other transactions 1,097 56 35 4 11 2 - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $(331,217) (16,943) $(4,898) (499) $(35,780) (3,603) $ 88 9
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 1,281 47 $ 115 7 $ 263 23 $ 43 4
TRANSFERS BETWEEN FUNDS (11,970) (511) 1,196 100 (3,776) (312) 883 77
Surrenders and terminations (122,038)(5,614) (3,008) (252) (14,496) (1,496) (70) (7)
Rescissions (222) (10) - - (26) (3) - -
Bonus - - - - - - - -
Other transactions 151 7 15 1 41 4 - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000 (
unaudited): $(132,798) (6,081) $(1,682) (144) $(17,994) (1,784) $856 74
---------------------------------------------------------------------------------------------------------------------------
Valuemark IV Contract transactions - 1999:
Purchase payments $ 3,376 160 $ 412 41 $ 635 65 $ - -
TRANSFERS BETWEEN FUNDS (471) (18) (381) (46) 3,409 397 14 1
Surrenders and terminations (8,179) (407) (1,017) (97) (795) (78) - -
Rescissions (40) (2) (3) - (3) - - -
Bonus - - - - - - - -
Other transactions 68 4 4 - 21 2 - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $(5,246) (263) $ (985) (102) $3,267 386 $ 14 1
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 1,352 63 $ 194 17 $ 406 41 $ 80 8
TRANSFERS BETWEEN FUNDS 4,415 215 663 57 (900) (36) 768 76
Surrenders and terminations (6,858) (319) (854) (73) (1,202) (127) (57) (5)
Rescissions (228) (11) (32) (3) - - - -
Bonus - - - - - - - -
Other transactions (14) (1) 5 - 5 - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $(1,333) (53) $ (24) (2) $(1,691) (122) $791 79
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
5. CONTRACT TRANSACTIONS: - VALUEMARK II, III, AND IV ACCUMULATION DOLLAR AND UNIT ACTIVITY (IN THOUSANDS) (CONTINUED)
USAllianz VIP USAllianz VIP Total
Fixed Income Growth All
Fund Fund Funds
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Valuemark II & III
CONTRACT TRANSACTIONS - 1999:
<S> <C> <C> <C> <C>
Purchase payments $ - - $ - - $ 50,672 1,967
Transfers between funds 126 13 224 22 456 5,213
Surrenders and terminations - - (8) (1)(2,528,241) (130,922)
Rescissions - - - - (8,255) (436)
Bonus - - - - - -
Other transactions - - - - 12,154 739
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ 126 13 $ 216 21 $(2,473,214) (123,439)
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ - - $ 1 -$ 25,743 982
Transfers between funds 394 39 502 48 3,301 3,667
Surrenders and terminations (64) (6) (63) (6)(1,228,117)(59,151)
Rescissions - - - - (4,771) (304)
Bonus - - - - - -
Other transactions - - - - 9,738 805
---------------------------------------------------------------------------------------------------------------------------
TOTAL NET CONTRACT TRANSACTIONS - 2000 (UNAUDITED): $ 330 33 $ 440 42$(1,194,106)(54,001)
---------------------------------------------------------------------------------------------------------------------------
Valuemark IV Contract transactions - 1999:
Purchase payments $ - - $ - - $ 118,568 6,433
Transfers between funds 5 1 101 10 187,684 11,368
Surrenders and terminations - - - - (204,137) (12,003)
Rescissions - - - - (2,359) (128)
Bonus - - - - - -
Other transactions - - - - 2,305 139
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ 5 1 $ 101 10 $ 102,061 5,809
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
PURCHASE PAYMENTS $ 1 - $ 28 3$ 36,791 2,140
Transfers between funds 495 50 406 38 50,241 4,113
Surrenders and terminations (47) (5) (10) (1) (162,453) (9,094)
Rescissions - - - - (2,089) (114)
Bonus - - - - - -
Other transactions - - 16 2 1,605 103
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000 (unaudited): $ 449 45 $ 440 42$ (75,905) (2,852)
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
6. CONTRACT TRANSACTIONS: - Charter Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
Transactions in dollars and units for each fund for the nine-month period ended
September 30, 2000 (unaudited) and the year ended December 31, 1999 were as
follows:
Franklin Global Franklin Global Franklin Franklin
Communications Health Care Growth and High
Securities Fund Securities Fund Income Fund Income Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Charter Traditional
CONTRACT TRANSACTIONS - 1999:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 179 6 $ 36 4 $ 1,195 44 $ 219 10
Transfers between funds (19) (1) (6) (1) (13) - 260 12
Surrenders and terminations (1) - - - (634) (23) (49) (2)
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ 159 5 $ 30 3 $ 548 21 $ 430 20
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 210 6 $ 106 9 $ 148 5 $ 216 10
TRANSFERS BETWEEN FUNDS 55 1 20 2 (69) (2) (229) (11)
Surrenders and terminations (2) - - - (292) (11) (19) (1)
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 263 7 $ 126 11 $(213) (8) $(32) (2)
---------------------------------------------------------------------------------------------------------------------------
Charter Enhanced Contract transactions - 1999:
Purchase payments $ 237 7 $ 43 5 $ 238 9 $ 7 -
TRANSFERS BETWEEN FUNDS (8) - 2 - 7 - 14 1
Surrenders and terminations (1) - - - (4) - (3) -
Bonus - - - - - - - -
Rescissions - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ 228 7 $ 45 5 $ 241 9 $ 18 1
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 47 1 $ 43 4 $ 172 7 $ 84 4
TRANSFERS BETWEEN FUNDS 4 - 4 - (17) (1) - -
Surrenders and terminations (3) - (3) - (5) - (30) (1)
Rescissions - - (4) - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 48 1 $ 40 4 $ 150 6 $54 3
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
6. CONTRACT TRANSACTIONS: - Charter Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
(continued)
Franklin Franklin Large Franklin Franklin
Income Cap Growth Money Market Natural Resources
Securities Fund Securities Fund Fund Securities Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Charter Traditional
CONTRACT TRANSACTIONS - 1999:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 1,223 48 $ 1,393 82 $ 8,404 562 $ 57 5
Transfers between funds 12 1 42 2 173 7 14 -
Surrenders and terminations (2) - (920) (48) (103) (7) - -
Rescissions - - (274) (17) - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ 1,233 49 $ 241 19 $ 8,474 562 $ 71 5
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 159 6 $ 257 12 $ 3,024 195 $ 2 -
TRANSFERS BETWEEN FUNDS (22) (1) 332 13 (1,917) (130) (11) (1)
Surrenders and terminations (280) (11) (160) (7) (125) (8) - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - 2,769 178 - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $(143) (6) $ 429 18 $3,751 235 $(9) (1)
---------------------------------------------------------------------------------------------------------------------------
Charter Enhanced Contract transactions - 1999:
Purchase payments $ 79 3 $ 125 7 $ 57 4 $ 4 -
TRANSFERS BETWEEN FUNDS 17 1 - - (41) (3) 2 -
Surrenders and terminations (1) - (4) - - - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ 95 4 $ 121 7 $ 16 1 $ 6 -
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 129 5 $ 322 15 $ - - $ - -
TRANSFERS BETWEEN FUNDS (3) - 3 - 45 3 4 -
Surrenders and terminations (1) - (8) - (62) (4) - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 125 5 $ 317 15 $(17) (1) $4 -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
6. CONTRACT TRANSACTIONS: - Charter Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
(continued)
Franklin Franklin Franklin Franklin
Real Estate Rising Dividends Small Cap U.S. Government
Fund Securities Fund Fund Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Charter Traditional
CONTRACT TRANSACTIONS - 1999:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 281 13 $ 355 18 $ 190 11 $ 1,598 83
Transfers between funds 136 7 2 - 456 21 343 18
Surrenders and terminations - - - - - - (270) (14)
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ 417 20 $ 357 18 $ 646 32 $ 1,671 87
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 129 5 $ 52 3 $ 59 2 $ 6 -
TRANSFERS BETWEEN FUNDS (67) (3) 21 - 1,090 37 (778) (40)
Surrenders and terminations - - (128) (7) (386) (11) (1) -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - (1,340) (47) - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 62 2 $ (55) (4) $(577) (19) $(773) (40)
---------------------------------------------------------------------------------------------------------------------------
Charter Enhanced Contract transactions - 1999:
Purchase payments $ 13 1 $ 214 11 $ 48 3 $ 213 11
TRANSFERS BETWEEN FUNDS 2 - (1) - 4 - 14 1
Surrenders and terminations - - (1) - - - (7) -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ 15 1 $ 212 11 $ 52 3 $ 220 12
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 110 5 $ - - $ 165 5 $ 193 10
TRANSFERS BETWEEN FUNDS 4 - (16) (1) 11 - (11) (1)
Surrenders and terminations (5) - (1) - (1) - (9) -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 109 5 $ (17) (1) $ 175 5 $173 9
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
6. CONTRACT TRANSACTIONS: - Charter Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
(continued)
Franklin Mutual Mutual Templeton
Value Discovery Shares Asset Strategy
Securities Fund Securities Fund Securities Fund Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Charter Traditional
CONTRACT TRANSACTIONS - 1999:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 374 48 $ 262 22 $ 895 70 $ 34 2
Transfers between funds (1) - (2) - (34) (3) - -
Surrenders and terminations (258) (34) (24) (2) (26) (2) - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ 115 14 $ 236 20 $ 835 65 $ 34 2
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 4 - $ 65 4 $ 143 11 $ - -
TRANSFERS BETWEEN FUNDS 20 1 24 2 17 1 (2) -
Surrenders and terminations - - (129) (9) (37) (3) - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 24 1 $ (40) (3) $ 123 9 $(2) -
---------------------------------------------------------------------------------------------------------------------------
Charter Enhanced Contract transactions - 1999:
Purchase payments $ 22 3 $ 123 10 $ 94 7 $ 15 1
TRANSFERS BETWEEN FUNDS - - 4 - 6 1 (1) -
Surrenders and terminations - - (4) - (5) - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ 22 3 $ 123 10 $ 95 8 $ 14 1
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ - - $ 89 6 $ 293 23 $ 30 2
TRANSFERS BETWEEN FUNDS - - 6 - (12) (1) (15) (1)
Surrenders and terminations - - (9) (1) (32) (2) - -
Rescissions - - (6) - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ - - $ 80 5 $ 249 20 $ 15 1
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
6. CONTRACT TRANSACTIONS: - Charter Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
(continued)
Templeton Templeton Templeton Templeton
Developing Markets Global Income Growth International
Securities Fund Securities Fund Securities Fund Securities Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Charter Traditional
CONTRACT TRANSACTIONS - 1999:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 211 21 $ 437 25 $ 1,732 97 $ 2,640 130
Transfers between funds (225) - 1 - (132) 3 (882) (6)
Surrenders and terminations - - - - (863) (46) - -
Rescissions - - - - (59) (3) - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ (14) 21 $ 438 25 $ 678 51 $ 1,758 124
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 113 10 $ 108 6 $ 123 7 $ 278 13
TRANSFERS BETWEEN FUNDS (310) (2) - - (170) - 1,684 99
Surrenders and terminations (28) (3) (14) (1) (159) (9) (187) (8)
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - (1,380) (61)
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $(225) 5 $ 94 5 $(206) (2) $395 43
---------------------------------------------------------------------------------------------------------------------------
Charter Enhanced Contract transactions - 1999:
Purchase payments $ 75 7 $ 21 1 $ 288 16 $ 268 13
TRANSFERS BETWEEN FUNDS 2 - (15) (1) 4 - 12 1
Surrenders and terminations - - - - (10) (1) - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ 77 7 $ 6 - $ 282 15 $ 280 14
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 64 6 $ - - $ 105 6 $ 181 8
TRANSFERS BETWEEN FUNDS 4 - - - 4 - 22 1
Surrenders and terminations (4) - - - (15) (1) (31) (1)
Rescissions (6) (1) - - (6) - (6) -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 58 5 $ - - $ 88 5 $166 8
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
6. CONTRACT TRANSACTIONS: - Charter Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
(continued)
Templeton Templeton Total
International Smaller Pacific Growth All
Companies Fund Securities Fund Funds
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Charter Traditional
CONTRACT TRANSACTIONS - 1999:
<S> <C> <C> <C> <C> <C>
Purchase payments $ 3 - $ 58 6 $ 21,776 1,307
Transfers between funds (133) - (32) - (40) 60
Surrenders and terminations - - - - (3,150) (178)
Rescissions - - - - (333) (20)
Bonus - - - - - -
Other transactions - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ (130) - $ 26 6 $ 18,253 1,169
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 27 2 $ 5 - $ 5,234 306
Transfers between funds (232) - (114) (2) (658) (36)
Surrenders and terminations (19) (2) (33) (3) (1,999) (94)
Rescissions - - - - - -
Bonus - - - - - -
OTHER TRANSACTIONS - - - - 49 70
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000 (unaudited): $ (224) - $ (142) (5) $ 2,626 246
---------------------------------------------------------------------------------------------------------------------------
Charter Enhanced Contract transactions - 1999:
Purchase payments $ 49 4 $ 46 4 $ 2,279 127
Transfers between funds - - - - 24 1
Surrenders and terminations - - - - (40) (1)
Rescissions - - - - - -
Bonus - - - - - -
Other transactions - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 1999: $ 49 4 $ 46 4 $ 2,263 127
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
Purchase payments $ 106 9 $ 73 7 $ 2,206 123
Transfers between funds 1 - 3 - 41 (1)
Surrenders and terminations (3) - (4) - (226) (10)
Rescissions (6) (1) (6) (1) (40) (3)
Bonus - - - - - -
Other transactions - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000 (unaudited): $ 98 8 $ 66 6 $ 1,981 109
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
7. Contract transactions: - Alterity Traditional, Enhanced and Optional Accumulation Dollar and Unit Activity (In
thousands)
Transactions in dollars and units for each fund for the nine-month period ended
September 30, 2000 (unaudited) were as follows:
AIM V.I. Capital AIM V.I. AIM V.I. International AIM V.I.
Appreciation Fund Growth Fund Equity Fund Value Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Alterity Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 541 49 $ 1,149 97 $ 330 34 $ 361 35
Transfers between funds 20 2 85 7 39 4 46 5
Surrenders and terminations (13) (1) (8) (1) (2) - (7) (1)
Rescissions (3) - (22) (2) (5) - (13) (1)
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
TOTAL NET CONTRACT TRANSACTIONS - 2000
(UNAUDITED): $ 545 50 $ 1,204 101 $ 362 38 $387 38
Alterity Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ 70 6 $ 245 21 $ 17 2 $ 145 14
Transfers between funds 56 5 34 3 14 2 45 5
Surrenders and terminations - - - - - - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 126 11 $ 279 24 $ 31 4 $190 19
---------------------------------------------------------------------------------------------------------------------------
Alterity Optional
CONTRACT TRANSACTIONS - 2000 (UNAUDITED):
Purchase payments $ 376 33 $ 385 33 $ 105 11 $ 411 39
Transfers between funds 123 11 90 8 135 14 63 6
Surrenders and terminations (2) - - - (2) - (2) -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 497 44 $ 475 41 $ 238 25 $472 45
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
7. Contract transactions: - Alterity Traditional, Enhanced and Optional Accumulation Dollar and Unit Activity (In
thousands) (CONTINUED)
ALGER AMERICAN ALGER AMERICAN ALGER AMERICAN MIDCAP ALGER AMERICAN SMALL
GROWTH PORTFOLIOLEVERAGED ALLCAP PORTFOLIO GROWTH PORTFOLIO CAPITALIZATION PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Alterity Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 411 36 $ 365 31 $ 464 41 $ 40 4
Transfers between funds 11 1 225 16 56 5 27 3
Surrenders and terminations (1) - (18) (2) (13) (1) - -
Rescissions (3) - (16) (1) (3) - - -
Bonus - - - - - - - -
Other transactions - - 1 - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 418 37 $ 557 44 $ 504 45 $67 7
---------------------------------------------------------------------------------------------------------------------------
Alterity Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ 85 8 $ 259 21 $ 178 15 $ 22 2
Transfers between funds 72 6 47 4 60 5 18 2
Surrenders and terminations - - - - - - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 157 14 $ 306 25 $ 238 20 $40 4
---------------------------------------------------------------------------------------------------------------------------
Alterity Optional Contract transactions - 2000 (unaudited):
PURCHASE PAYMENTS $ 131 12 $ 308 26 $ 242 21 $ 148 16
---------------------------------------------------------------------------------------------------------------------------
Transfers between funds 164 15 44 4 82 7 31 3
Surrenders and terminations (3) - (1) - (1) - (2) -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 292 27 $ 351 30 $ 323 28 $177 19
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
7. Contract transactions: - Alterity Traditional, Enhanced and Optional Accumulation Dollar and Unit Activity (In
thousands) (CONTINUED)
Franklin
Davis VA Davis VA Davis VA Growth and
Financial Portfolio Real Estate Portfolio Value Portfolio Income Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
ALTERITY TRADITIONAL
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 171 16 $ 75 7 $ 159 15 $ 130 5
Transfers between funds 14 1 39 3 9 - 3 -
Surrenders and terminations - - - - (2) - (10) -
Rescissions - - - - (12) (1) (22) (1)
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 185 17 $ 114 10 $ 154 14 $101 4
---------------------------------------------------------------------------------------------------------------------------
Alterity Enhanced Contract transactions - 2000 (unaudited):
PURCHASE PAYMENTS $ 3 - $ 13 1 $ 82 8 $ - -
---------------------------------------------------------------------------------------------------------------------------
Transfers between funds 1 - 1 - (24) (2) - -
Surrenders and terminations - - - - (1) - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 4 - $ 14 1 $ 57 6 $ - -
---------------------------------------------------------------------------------------------------------------------------
Alterity Optional Contract transactions - 2000 (unaudited):
Purchase payments $ - - $ 758 64 $ 422 39 $ 33 1
Transfers between funds 2 - - - 70 6 72 3
Surrenders and terminations - - - - - - (3) -
Rescissions - - (241) (20) - - - -
Bonus - - - - - - - -
OTHER TRANSACTIONS - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 2 - $ 517 44 $ 492 45 $102 4
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
7. Contract transactions: - Alterity Traditional, Enhanced and Optional Accumulation Dollar and Unit Activity (In
thousands) (CONTINUED)
Franklin Franklin Franklin J.P. Morgan
Rising Dividends Small Cap U.S. Government International Opportunities
Securities Fund Fund Fund Portfolio
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Alterity Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PURCHASE PAYMENTS $ 39 2 $ 564 19 $ 39 2 $ 191 19
---------------------------------------------------------------------------------------------------------------------------
Transfers between funds (15) (1) 105 3 10 1 9 1
Surrenders and terminations (2) - (12) - - - - -
Rescissions (20) (1) (35) (1) - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000 (unaudited): $ 2 - $ 622 21 $ 49 3 $
200 20
---------------------------------------------------------------------------------------------------------------------------
Alterity Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ - - $ 115 4 $ 11 1 $ 5 -
Transfers between funds - - 33 1 2 - 1 -
Surrenders and terminations - - - - - - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
OTHER TRANSACTIONS - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ - - $ 148 5 $ 13 1 $6 -
---------------------------------------------------------------------------------------------------------------------------
Alterity Optional Contract transactions - 2000 (unaudited):
Purchase payments $ 7 - $ 215 8 $ 257 14 $ - -
Transfers between funds - - 121 4 126 7 12 1
Surrenders and terminations - - (1) - (1) - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 7 - $ 335 12 $ 382 21 $12 1
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
7. Contract transactions: - Alterity Traditional, Enhanced and Optional Accumulation Dollar and Unit Activity (In
thousands) (CONTINUED)
J.P. Morgan Mutual Mutual Oppenheimer
U.S. Disciplined Discovery Shares Global Securities
Equity Portfolio Securities Fund Securities Fund Fund/VA
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Alterity Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 24 2 $ 105 7 $ 281 20 $ 239 25
Transfers between funds 1 - 40 3 - - 157 14
Surrenders and terminations - - - - - - - -
Rescissions - - (8) (1) - - (12) (1)
Bonus - - - - - - - -
OTHER TRANSACTIONS - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 25 2 $ 137 9 $ 281 20 $384 38
---------------------------------------------------------------------------------------------------------------------------
Alterity Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ 59 6 $ 56 4 $ 124 9 $ 202 21
Transfers between funds 6 1 3 - - - (11) (1)
Surrenders and terminations - - (1) - (1) - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 65 7 $ 58 4 $ 123 9 $191 20
---------------------------------------------------------------------------------------------------------------------------
Alterity Optional Contract transactions - 2000 (unaudited):
Purchase payments $ 18 2 $ 19 1 $ 49 4 $ 283 30
Transfers between funds 26 3 4 - 18 1 57 6
Surrenders and terminations - - - - - - (1) -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 44 5 $ 23 1 $ 67 5 $339 36
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
7. Contract transactions: - Alterity Traditional, Enhanced and Optional Accumulation Dollar and Unit Activity (In
thousands) (CONTINUED)
Oppenheimer Oppenheimer PIMCO VIT PIMCO VIT
High Income Main Street Growth & High Yield Bond StockPLUS Growth &
Fund/VA Income Portfolio/VA Portfolio Income Portfolio
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Alterity Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 286 32 $ 643 64 $ 58 6 $ 69 7
Transfers between funds 31 3 235 24 48 4 1 -
Surrenders and terminations (15) (2) - - - - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
TOTAL NET CONTRACT TRANSACTIONS - 2000
(UNAUDITED): $ 302 33 $ 878 88 $ 106 10 $70 7
Alterity Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ - - $ 69 7 $ 38 4 $ 7 1
Transfers between funds 2 - 31 3 - - - -
Surrenders and terminations - - - - - - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 2 - $ 100 10 $ 38 4 $ 7 1
---------------------------------------------------------------------------------------------------------------------------
Alterity Optional
CONTRACT TRANSACTIONS - 2000 (UNAUDITED):
Purchase payments $ - - $ 98 10 $ 269 28 $ 74 7
Transfers between funds - - 74 7 (9) (1) 13 1
Surrenders and terminations - - - - - - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ - - $ 172 17 $ 260 27 $ 87 8
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
7. Contract transactions: - Alterity Traditional, Enhanced and Optional Accumulation Dollar and Unit Activity (In
thousands) (CONTINUED)
PIMCO VIT SELIGMAN SELIGMAN TEMPLETON
TOTAL RETURN GLOBAL TECHNOLOGY SMALL CAP VALUE DEVELOPING MARKETS
BOND PORTFOLIO FUND FUND SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Alterity Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 120 12 $ 1,211 106 $ 165 15 $ 53 5
Transfers between funds 60 4 97 9 (8) - (2) -
Surrenders and terminations - - (17) (2) - - - -
Rescissions - - (16) (1) (1) - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 180 16 $1,275 112 $ 156 15 $51 5
---------------------------------------------------------------------------------------------------------------------------
Alterity Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ 9 1 $ 282 27 $ 4 - $ 10 1
Transfers between funds 12 1 82 8 2 - - -
Surrenders and terminations - - - - - - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 21 2 $ 364 35 $ 6 - $10 1
---------------------------------------------------------------------------------------------------------------------------
Alterity Optional Contract transactions - 2000 (unaudited):
PURCHASE PAYMENTS $ 11 1 $ 245 23 $ 79 7 $ 74 7
Transfers between funds 85 8 127 12 (4) - 2 -
Surrenders and terminations - - - - - - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 96 9 $ 372 35 $ 75 7 $76 7
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
7. Contract transactions: - Alterity Traditional, Enhanced and Optional Accumulation Dollar and Unit Activity (In
thousands) (CONTINUED)
Templeton Templeton USAllianz VIP USAllianz VIP
Growth Pacific Growth Diversified Assets Fixed Income
Securities Fund Securities Fund Fund Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
ALTERITY TRADITIONAL
---------------------------------------------------------------------------------------------------------------------------
Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 138 7 $ 20 2 $ 159 16 $ 16 2
Transfers between funds 19 1 - - 10 1 - -
Surrenders and terminations - - - - - - - -
Rescissions (21) (1) - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 136 7 $ 20 2 $ 169 17 $16 2
---------------------------------------------------------------------------------------------------------------------------
Alterity Enhanced Contract transactions - 2000 (unaudited):
PURCHASE PAYMENTS $ 126 7 $ 8 1 $ - - $ 5 -
Transfers between funds - - - - - - - -
Surrenders and terminations (1) - - - - - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 125 7 $ 8 1 $ - - $5 -
---------------------------------------------------------------------------------------------------------------------------
Alterity Optional Contract transactions - 2000 (unaudited):
Purchase payments $ 152 8 $ 12 1 $ 5 - $ - -
Transfers between funds - - - - - - - -
Surrenders and terminations - - - - - - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
OTHER TRANSACTIONS - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 152 8 $ 12 1 $ 5 - $ - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
7. Contract transactions: - Alterity Traditional, Enhanced and Optional Accumulation Dollar and Unit Activity (In
thousands) (CONTINUED)
USAllianz VIP USAllianz VIP USAllianz VIP Van Kampen LIT
Global Opportunities Growth Money Market Enterprise
Fund Fund Fund Portfolio
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Alterity Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PURCHASE PAYMENTS $ 37 4 $ 61 5 $1,186 118 $ 44 4
---------------------------------------------------------------------------------------------------------------------------
Transfers between funds 11 - 1 - (692) (73) 1 -
Surrenders and terminations - - - - - - (5) -
Rescissions - - - - - - - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 48 4 $ 62 5 $ 494 45 $40 4
---------------------------------------------------------------------------------------------------------------------------
Alterity Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ - - $ 2 - $ 133 13 $ 32 3
Transfers between funds 1 - - - (41) (4) 4 -
Surrenders and terminations - - - - - - - -
Rescissions - - - - - - - -
Bonus - - - - - - - -
OTHER TRANSACTIONS - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 1 - $ 2 - $ 92 9 $36 3
---------------------------------------------------------------------------------------------------------------------------
Alterity Optional Contract transactions - 2000 (unaudited):
Purchase payments $ 19 2 $ 8 1 $ 1,053 105 $ 40 4
Transfers between funds - - - - (621) (62) - -
Surrenders and terminations - - - - - - - -
Rescissions - - - - (242) (24) - -
Bonus - - - - - - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 19 2 $ 8 1 $ 190 19 $40 4
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
7. Contract transactions: - Alterity Traditional, Enhanced and Optional Accumulation Dollar and Unit Activity (In
thousands) (CONTINUED)
Van Kampen LIT Total
Growth & Income All
Portfolio Funds
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Alterity Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C>
Purchase payments $ 61 5 $10,005 876
Transfers between funds 1 - 694 41
Surrenders and terminations - - (125) (10)
Rescissions - - (212) (12)
Bonus - - - -
Other transactions - - 1 -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000 (unaudited): $ 62 5 $10,363 895
---------------------------------------------------------------------------------------------------------------------------
Alterity Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ - - $2,416 208
Transfers between funds 29 3 480 42
Surrenders and terminations - - (4) -
Rescissions - - - -
Bonus - - - -
Other transactions - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000 (unaudited): $ 29 3 $2,892 250
---------------------------------------------------------------------------------------------------------------------------
Alterity Optional Contract transactions - 2000 (unaudited):
Purchase payments $ 6 1 $6,312 559
Transfers between funds 33 3 940 67
Surrenders and terminations - - (19) -
Rescissions - - (483) (44)
Bonus - - - -
Other transactions - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000 (unaudited): $ 39 4 $6,750 582
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
8. Contract transactions: - Rewards Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
Transactions in dollars and units for each fund for the nine-month period ended
September 30, 2000 (unaudited) were as follows:
AIM V.I. Capital AIM V.I. AIM V.I. International AIM V.I.
Appreciation Fund Growth Fund Equity Fund Value Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Rewards Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 2,198 190 $ 1,118 96 $ 852 90 $ 1,219 120
Transfers between funds (8) (1) 13 1 (11) (1) 36 4
Surrenders and terminations (13) (1) (2) - (5) (1) (7) (1)
Rescissions (31) (3) (37) (3) - - (18) (2)
Bonus 146 13 58 5 52 6 68 7
Other transactions 7 1 5 - 4 - - -
---------------------------------------------------------------------------------------------------------------------------
TOTAL NET CONTRACT TRANSACTIONS - 2000
(UNAUDITED): $2,299 199 $ 1,155 99 $ 892 94 $1,298 128
Rewards Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ 549 48 $ 838 72 $ 224 24 $ 441 43
Transfers between funds (1) - 8 1 - - - -
Surrenders and terminations (6) (1) (7) (1) - - (2) -
Rescissions - - - - - - - -
Bonus 31 3 47 4 13 1 24 2
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 573 50 $ 886 76 $ 237 25 $463 45
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
8. Contract transactions: - Rewards Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
(CONTINUED)
Alger American Alger American Alger American MidCapAlger American Small
Growth PortfolioLeveraged AllCap PortfolioGrowth PortfolioCapitalization Portfolio
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Rewards Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 2,048 180 $ 1,175 99 $ 638 53 $ 118 13
Transfers between funds 5 - 20 2 95 8 6 1
Surrenders and terminations (8) (1) (2) - (3) - - -
Rescissions (58) (5) (41) (4) (3) - - -
Bonus 131 12 67 6 34 3 7 1
Other transactions 7 1 4 - 2 - - -
---------------------------------------------------------------------------------------------------------------------------
TOTAL NET CONTRACT TRANSACTIONS - 2000
(UNAUDITED): $2,125 187 $ 1,223 103 $ 763 64 $131 15
Rewards Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ 469 41 $ 357 30 $ 707 59 $ 108 11
Transfers between funds - - (4) - (5) - - -
Surrenders and terminations (1) - - - (18) (1) - -
Rescissions - - - - - - - -
Bonus 27 2 21 2 39 3 6 1
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 495 43 $ 374 32 $ 723 61 $114 12
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
8. Contract transactions: - Rewards Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
(CONTINUED)
Franklin
Davis VA Davis VA Davis VA Growth and
Financial PortfolioReal Estate Portfolio Value Portfolio Income Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Rewards Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 76 6 $ 451 38 $ 461 42 $ 143 5
Transfers between funds 69 6 11 1 10 1 (9) -
Surrenders and terminations - - (3) - - - - -
Rescissions - - (1) - (45) (4) - -
Bonus 5 - 35 3 22 2 7 -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
TOTAL NET CONTRACT TRANSACTIONS - 2000
(UNAUDITED): $ 150 12 $ 493 42 $ 448 41 $141 5
Rewards Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ 323 27 $ 110 9 $ 327 30 $ 114 4
Transfers between funds (5) - - - 9 1 - -
Surrenders and terminations (17) (1) (15) (1) (2) - (1) -
Rescissions - - - - - - - -
Bonus 17 1 5 - 19 2 7 -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 318 27 $ 100 8 $ 353 33 $120 4
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
8. Contract transactions: - Rewards Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
(CONTINUED)
Franklin Franklin Franklin J.P. Morgan
Rising Dividends Small Cap U.S. GovernmentInternational Opportunities
Securities Fund Fund Fund Portfolio
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Rewards Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 125 7 $ 1,197 40 $ 763 39 $ 21 2
Transfers between funds 15 1 93 3 - - 12 1
Surrenders and terminations - - (7) - (6) - - -
Rescissions - - (12) - - - - -
Bonus 7 - 77 3 57 3 1 -
Other transactions - - 4 - - - - -
---------------------------------------------------------------------------------------------------------------------------
TOTAL NET CONTRACT TRANSACTIONS - 2000
(UNAUDITED): $ 147 8 $ 1,352 46 $ 814 42 $34 3
Rewards Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ 50 3 $ 404 14 $ 11 1 $ 68 7
Transfers between funds - - 4 - - - - -
Surrenders and terminations (1) - - - - - - -
Rescissions - - - - - - - -
Bonus 3 - 24 1 1 - 4 -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 52 3 $ 432 15 $ 12 1 $ 72 7
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
8. Contract transactions: - Rewards Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
(CONTINUED)
J.P. Morgan Mutual Mutual Oppenheimer
U.S. Disciplined Discovery Shares Global Securities
Equity Portfolio Securities Fund Securities Fund Fund/VA
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Rewards Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 225 21 $ 64 4 $ 13 1 $ 1,368 143
Transfers between funds - - - - - - 77 8
Surrenders and terminations - - - - - - (7) (1)
Rescissions - - - - - - (5) (1)
Bonus 14 1 2 - - - 94 10
Other transactions - - - - - - 2 -
---------------------------------------------------------------------------------------------------------------------------
TOTAL NET CONTRACT TRANSACTIONS - 2000
(UNAUDITED): $ 239 22 $ 66 4 $ 13 1 $1,529 159
Rewards Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ 174 17 $ 9 1 $ 52 4 $ 224 24
Transfers between funds - - - - - - - -
Surrenders and terminations (1) - - - - - - -
Rescissions - - - - - - - -
Bonus 9 1 - - 3 - 13 1
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 182 18 $ 9 1 $ 55 4 $237 25
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
8. Contract transactions: - Rewards Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
(CONTINUED)
Oppenheimer Oppenheimer PIMCO VIT PIMCO VIT
High Income Main Street Growth & High Yield Bond StockPLUS Growth &
Fund/VA Income Portfolio/VA Portfolio Income Portfolio
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Rewards Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 561 63 $ 2,086 205 $ 13 1 $ 208 20
Transfers between funds (12) (1) 153 15 - - 14 1
Surrenders and terminations (4) - (12) (1) - - - -
Rescissions - - (36) (4) - - (18) (2)
Bonus 41 5 145 14 1 - 10 1
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
TOTAL NET CONTRACT TRANSACTIONS - 2000
(UNAUDITED): $ 586 67 $ 2,336 229 $ 14 1 $214 20
Rewards Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ 11 1 $ 443 44 $ - - $ 165 16
Transfers between funds - - - - - - - -
Surrenders and terminations - - (1) - - - - -
Rescissions - - - - - - - -
Bonus 1 - 25 3 - - 9 1
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 12 1 $ 467 47 $ - - $174 17
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
8. Contract transactions: - Rewards Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
(CONTINUED)
PIMCO VIT Seligman Seligman Templeton
Total Return Global Technology Small Cap Value Developing Markets
Bond Portfolio Fund Fund Securities Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Rewards Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 864 85 $ 1,102 105 $ 657 52 $ 56 5
Transfers between funds (10) (1) 81 7 3 - 2 -
Surrenders and terminations (5) (1) (5) - (5) - - -
Rescissions - - (42) (4) - - - -
Bonus 62 6 56 5 50 4 3 -
Other transactions - - 7 1 - - - -
---------------------------------------------------------------------------------------------------------------------------
TOTAL NET CONTRACT TRANSACTIONS - 2000
(UNAUDITED): $ 911 89 $ 1,199 114 $ 705 56 $61 5
Rewards Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ 26 3 $ 760 72 $ 53 4 $ - -
Transfers between funds - - 1 - - - - -
Surrenders and terminations - - (16) (1) - - - -
Rescissions - - - - - - - -
Bonus 1 - 41 4 3 - - -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 27 3 $ 786 75 $ 56 4 $ - -
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
8. Contract transactions: - Rewards Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
(CONTINUED)
Templeton Templeton USAllianz VIP USAllianz VIP
Growth Pacific Growth Diversified Assets Fixed Income
Securities Fund Securities Fund Fund Fund
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Rewards Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 83 4 $ - - $ 12 1 $ 62 6
Transfers between funds 1 - - - 1 - - -
Surrenders and terminations - - - - - - (1) -
Rescissions - - - - - - - -
Bonus 1 - - - 1 - 4 -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
TOTAL NET CONTRACT TRANSACTIONS - 2000
(UNAUDITED): $ 85 4 $ - - $ 14 1 $ 65 6
Rewards Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ 115 6 $ 13 1 $ 3 - $ 11 1
Transfers between funds - - - - - - - -
Surrenders and terminations - - - - - - - -
Rescissions - - - - - - - -
Bonus 7 - 1 - - - 1 -
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 122 6 $ 14 1 $ 3 - $ 12 1
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
8. Contract transactions: - Rewards Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
(CONTINUED)
USAllianz VIP USAllianz VIP USAllianz VIP Van Kampen LIT
Global Opportunities Growth Money Market Enterprise
Fund Fund Fund Portfolio
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Rewards Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchase payments $ 24 2 $ 13 1 $ 5,820 572 $ 407 37
Transfers between funds (4) - - - (825) (82) 96 9
Surrenders and terminations - - - - (4) - (1) -
Rescissions - - - - - - - -
Bonus 1 - 1 - 361 36 25 2
Other transactions - - - - - - 2 -
---------------------------------------------------------------------------------------------------------------------------
TOTAL NET CONTRACT TRANSACTIONS - 2000
(UNAUDITED): $ 21 2 $ 14 1 $5,352 526 $ 529 48
Rewards Enhanced Contract transactions - 2000 (unaudited):
Purchase payments $ 10 1 $ 80 7 $ 627 62 $ 148 13
Transfers between funds - - - - (11) (1) - -
Surrenders and terminations - - - - - - - -
Rescissions - - - - - - - -
Bonus 1 - 4 - 37 4 9 1
Other transactions - - - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000
(unaudited): $ 11 1 $ 84 7 $ 653 65 $ 157 14
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
8. Contract transactions: - Rewards Traditional and Enhanced Accumulation Dollar and Unit Activity (In thousands)
(CONTINUED)
Van Kampen LIT Total
Growth & Income All
Portfolio Funds
---------------------------------------------------------------------------------------------------------------------------
Dollars Units Dollars Units
---------------------------------------------------------------------------------------------------------------------------
Rewards Traditional Contract transactions - 2000 (unaudited):
<S> <C> <C> <C> <C>
Purchase payments $ 662 58 $26,903 2,406
Transfers between funds 25 2 (41) (15)
Surrenders and terminations (1) - (101) (7)
Rescissions (11) (1) (358) (33)
Bonus 40 4 1,686 152
Other transactions - - 44 3
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000 (unaudited): $ 715 63 $28,133 2,506
---------------------------------------------------------------------------------------------------------------------------
Rewards Enhanced Contract transactions - 2000 (unaudited):
PURCHASE PAYMENTS $ 94 9 $8,118 709
Transfers between funds - - (4) 1
Surrenders and terminations (1) - (89) (6)
Rescissions - - - -
Bonus 5 - 458 37
Other transactions - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Net Contract Transactions - 2000 (unaudited): $ 98 9 $8,483 741
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
9. Unit Values - Valuemark II, III, and IV
A summary of accumulation unit values and accumulation units outstanding for
variable annuity contracts and the expense ratios, including expenses of the
underlying funds, for the nine-month period ended September 30, 2000 (unaudited)
and each of the four years in the period ended December 31, 1999 follows.
Valuemark II & III Valuemark IV
---------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of
Accumulation Expenses Accumulation Expenses
Units OutstandingAccumulationNet Assetsto Average Units OutstandingAccumulationNet Assets to Average
(in thousands)Unit Value(in thousands)Net Assets* (in thousands)Unit Value(in thousands)Net Assets*
---------------------------------------------------------------------------------------------------------------------------
AIM V.I. Growth Fund
SEPTEMBER 30, 2000
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(UNAUDITED) 2,586 $11.217 $ 29,006 2.13% 2,080 $11.208 $23,311 2.22%
December 31,
19991 526 11.084 5,866 2.13+ 363 11.083 4,026 2.22+
Alger American Growth Fund
September 30, 2000
(unaudited) 1,966 10.798 21,228 2.19 1,498 10.789 16,164 2.28
December 31,
19991 540 10.922 5,894 2.19+ 415 10.921 4,535 2.28+
Alger American Leveraged AllCap Fund
September 30, 2000
(unaudited) 1,056 11.587 12,236 2.33 965 11.578 11,169 2.42
December 31,
19991 340 12.160 4,137 2.33+ 277 12.159 3,364 2.42+
Franklin Aggressive Growth Securities Fund
SEPTEMBER 30, 20006
(UNAUDITED) 556 11.840 6,588 2.12+ 276 11.835 3,263 2.21+
Franklin Global Communications Securities Fund
September 30, 2000 (unaudited)18,241 33.514 611,351 1.91 1,617 33.195 53,670 2.00
December 31,
1999 21,687 38.917 844,307 1.91 1,418 38.572 54,724 2.00
1998 30,851 28.308 873,319 1.90 1,006 28.082 28,248 1.99
1997 39,623 25.818 1,022,994 1.90 310 25.635 7,959 1.99
1996 53,086 20.654 1,097,873 1.90 - - - -
Franklin Global Health Care Securities Fund
September 30, 2000 (unaudited)1,374 16.692 22,938 2.22 903 16.656 15,047 2.31
December 31,
1999 634 9.615 6,088 2.22 469 9.601 4,512 2.31
19982 586 10.610 6,215 2.24+ 224 11.000 2,381 2.33+
Franklin Growth and Income Fund
September 30, 2000 (unaudited)20,462 28.776 588,806 1.89 4,767 28.475 135,728 1.98
December 31,
1999 27,634 26.147 722,583 1.89 5,570 25.891 144,218 1.98
1998 40,480 26.226 1,061,658 1.89 5,185 25.993 134,775 1.98
1997 46,962 24.551 1,152,961 1.89 2,376 24.354 57,877 1.98
1996 50,027 19.490 977,110 1.90 - - - -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
9. Unit Values - Valuemark II, III, and IV (CONTINUED)
Valuemark II & III Valuemark IV
---------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of
Accumulation Expenses Accumulation Expenses
Units OutstandingAccumulationNet Assetsto Average Units OutstandingAccumulationNet Assets to Average
(in thousands)Unit Value(in thousands)Net Assets* (in thousands)Unit Value(in thousands Net Assets*
---------------------------------------------------------------------------------------------------------------------------
Franklin High Income Fund
September 30, 2000
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(unaudited) 6,562 $ 19.826$ 130,094 1.94% 3,254 $ 19.618 $ 63,835 2.03%
December 31,
1999 9,493 20.900 198,407 1.94 4,118 20.695 85,209 2.03
1998 14,987 21.208 317,865 1.93 4,191 21.020 88,069 2.02
1997 18,871 21.312 402,167 1.93 2,202 21.141 46,545 2.02
1996 20,736 19.375 402,379 1.94 - - - -
Franklin Income Securities Fund
September 30, 2000
(unaudited) 18,402 27.959 514,503 1.90 3,620 27.667 100,150 1.99
December 31,
1999 24,929 24.323 606,369 1.90 4,380 24.084 105,486 1.99
1998 39,420 25.122 990,325 1.89 4,239 24.898 105,543 1.98
1997 49,811 25.0651,248,520 1.90 2,094 24.864 52,069 1.99
1996 57,504 21.708 1,251,844 1.90 - - - -
Franklin Large Cap Growth Securities Fund
September 30, 2000
(unaudited) 10,723 23.422 251,167 2.17 7,982 23.329 186,223 2.26
December 31,
1999 10,867 20.218 219,679 2.17 7,521 20.152 151,537 2.26
1998 8,454 15.574 131,652 2.17 4,502 15.537 69,939 2.26
1997 5,673 13.130 74,473 2.17 1,967 13.110 25,654 2.26
19963 3,722 11.254 42,110 2.17+ - - - -
Franklin Money Market Fund
September 30, 2000
(unaudited) 12,183 15.346 186,965 1.93 4,096 15.188 62,209 2.02
December 31,
1999 17,388 14.860 258,373 1.93 5,236 14.717 77,050 2.02
1998 22,032 14.386 316,921 1.85 4,342 14.260 61,911 1.94
1997 20,892 13.865 290,904 1.85 3,214 13.756 44,200 1.94
1996 28,060 13.359 375,629 1.83 - - - -
Franklin Natural Resources Securities Fund
September 30, 2000
(unaudited) 2,461 14.010 34,475 2.06 631 13.864 8,754 2.15
December 31,
1999 2,940 11.092 32,615 2.06 616 10.983 6,761 2.15
1998 4,453 8.505 37,878 2.04 514 8.430 4,332 2.13
1997 5,709 11.559 65,992 2.09 304 11.466 3,482 2.18
1996 6,998 14.467 101,248 2.05 - - - -
FRANKLIN REAL ESTATE FUND
September 30, 2000
(unaudited) 4,015 26.868 107,885 1.98 1,359 26.587 36,125 2.07
December 31,
1999 5,401 21.386 115,525 1.98 1,490 21.176 31,567 2.07
1998 9,639 23.107 222,740 1.94 1,823 22.901 41,773 2.03
1997 13,445 28.169 378,751 1.94 1,217 27.944 34,023 2.03
1996 12,757 23.668 301,974 1.97 - - - -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
9. Unit Values - Valuemark II, III, and IV (CONTINUED)
Valuemark II & III Valuemark IV
---------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of
Accumulation Expenses Accumulation Expenses
Units OutstandingAccumulationNet Assetsto Average Units OutstandingAccumulationNet Assetsto Average
(in thousands)Unit Value(in thousands)Net Assets* (in thousands)Unit Value(in thousands)Net Assets*
---------------------------------------------------------------------------------------------------------------------------
Franklin Rising Dividends Securities Fund
September 30, 2000
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(unaudited) 12,049 $ 19.675 $ 237,067 2.15% 3,223 $ 19.523 $ 62,914 2.24%
December 31,
1999 17,252 18.846 325,172 2.15 4,137 18.712 77,429 2.24
1998 27,683 21.165 585,952 2.12 4,428 21.034 93,151 2.21
1997 33,249 20.074 667,473 2.14 1,991 19.968 39,752 2.23
1996 35,569 15.303 545,127 2.16 - - - -
Franklin S&P 500 Index Fund
SEPTEMBER 30, 2000
(UNAUDITED) 2,404 10.285 24,723 1.95 1,718 10.277 17,659 2.04
December 31,
19991 727 10.467 7,613 1.95+ 626 10.465 6,555 2.04+
Franklin Small Cap Fund
September 30, 2000
(unaudited) 9,429 30.095 283,763 2.17 5,680 29.962 170,183 2.26
December 31,
1999 10,654 28.353 302,040 2.17 5,460 28.247 154,275 2.26
1998 14,856 14.600 216,872 2.17 5,492 14.558 79,977 2.26
1997 16,925 14.952 253,045 2.17 2,965 14.923 44,268 2.26
1996 12,784 12.913 165,578 2.17 - - - -
Franklin Technology Securities Fund
September 30, 20006
(unaudited) 413 12.088 4,987 2.33+ 380 12.084 4,592 2.42+
Franklin U.S. Government Fund
September 30, 2000 (unaudited)16,289 19.678 320,545 1.91 3,495 19.474 68,067 2.00
December 31,
1999 20,938 18.574 388,862 1.91 3,857 18.394 70,974 2.00
1998 30,500 19.014 579,909 1.90 3,040 18.847 57,334 1.99
1997 36,347 17.947 652,317 1.90 1,359 17.805 24,222 1.99
1996 44,598 16.650 742,973 1.91 - - - -
Franklin Value Securities Fund
September 30, 2000 (unaudited)872 8.819 7,694 2.21 799 8.799 7,030 2.30
December 31,
1999 727 7.736 5,614 2.21 603 7.724 4,657 2.30
19982 719 7.717 5,542 2.52+ 367 7.713 2,834 2.61+
Franklin Zero Coupon Fund - 2000
September 30, 2000 (unaudited)1,901 21.694 41,246 2.05 209 21.469 4,484 2.14
December 31,
1999 2,547 21.023 53,526 2.05 282 20.819 5,831 2.14
1998 3,595 20.684 74,353 1.80 188 20.502 3,815 1.89
1997 4,523 19.512 88,260 1.80 94 19.358 1,801 1.89
1996 5,636 18.475 104,125 1.80 - - - -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
9. Unit Values - Valuemark II, III, and IV (CONTINUED)
VALUEMARK II & III VALUEMARK IV
Ratio of Ratio of
Accumulation Expenses Accumulation Expenses
Units OutstandingAccumulationNet Assetsto Average Units OutstandingAccumulationNet Assetsto Average
(in thousands)Unit Value(in thousands)Net Assets* (in thousands)Unit Value(in thousands)Net Assets*
---------------------------------------------------------------------------------------------------------------------------
Franklin Zero Coupon Fund - 2005
September 30, 2000
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(unaudited) 1,598 $ 24.497 $ 39,157 2.05% 506 $ 24.246 $ 12,272 2.14%
December 31,
1999 2,011 23.205 46,679 2.05 555 22.983 12,750 2.14
1998 2,635 25.003 65,876 1.80 380 24.786 9,402 1.89
1997 2,910 22.532 65,573 1.80 161 22.357 3,585 1.89
1996 3,579 20.517 73,434 1.80 - - - -
Franklin Zero Coupon Fund - 2010
September 30, 2000
(unaudited) 1,380 26.048 35,945 2.05 578 25.777 14,905 2.14
December 31,
1999 1,851 24.164 44,759 2.05 668 23.929 15,961 2.14
1998 2,582 27.920 72,114 1.80 478 27.674 13,233 1.89
1997 2,998 24.740 74,199 1.80 150 24.544 3,676 1.89
1996 3,297 21.522 70,969 1.80 - - - -
Mutual Discovery Securities Fund
September 30, 2000
(unaudited) 4,854 14.717 71,436 2.41 7,205 14.666 105,672 2.50
December 31,
1999 5,796 13.701 79,396 2.41 7,820 13.662 106,824 2.50
1998 9,718 11.226 109,094 2.40 8,822 11.205 98,842 2.49
1997 9,940 11.983 119,104 2.46 5,461 11.971 65,375 2.55
19965 1,471 10.180 15,074 2.77+ - - - -
Mutual Shares Securities Fund
September 30, 2000
(unaudited) 9,291 14.120 131,182 2.19 16,283 14.070 229,102 2.28
December 31,
1999 12,423 13.237 164,442 2.19 18,924 13.199 249,799 2.28
1998 18,133 11.837 214,642 2.17 19,834 11.814 234,337 2.26
1997 18,744 11.993 224,796 2.20 11,394 11.981 136,521 2.29
19965 2,613 10.330 27,141 2.40+ - - - -
Templeton Asset Strategy Fund
September 30, 2000
(unaudited) 1,951 13.825 26,973 2.22 1,147 13.757 15,776 2.31
December 31,
1999 2,504 14.408 36,071 2.22 1,403 14.347 20,133 2.31
1998 4,056 13.589 55,102 2.24 1,491 13.543 20,200 2.33
1997 5,229 13.786 72,082 2.34 1,008 13.752 13,864 2.43
1996 4,104 12.514 52,117 2.26 - - - -
Templeton Developing Markets Equity Fund
September 30, 2000
(unaudited) 8,452 9.199 77,752 2.79 3,166 9.145 28,951 2.88
December 31,
1999 11,226 12.188 136,842 2.79 3,389 12.125 41,093 2.88
1998 15,989 7.993 127,804 2.81 3,425 7.958 27,259 2.90
1997 23,005 10.340 237,895 2.82 2,663 10.305 27,448 2.91
1996 22,423 11.487 259,346 2.89 - - - -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
9. Unit Values - Valuemark II, III, and IV (CONTINUED)
Valuemark II & III Valuemark IV
---------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of
Accumulation Expenses Accumulation Expenses
Units OutstandingAccumulationNet Assetsto Average Units OutstandingAccumulationNet Assetsto Average
(in thousands)Unit Value(in thousands)Net Assets* (in thousands)Unit Value(in thousands)Net Assets*
---------------------------------------------------------------------------------------------------------------------------
Templeton Global Income Securities Fund
September 30, 2000
<S> <C> <C> <C> <C> <C> <C> <C>
(unaudited) 3,097 $ 16.055$ 49,716 2.05% 539 $ 15.887 $ 8,564 2.14%
December 31,
1999 4,226 16.635 70,284 2.05 657 16.472 10,843 2.14
1998 6,976 17.905 124,899 2.03 651 17.746 11,582 2.12
1997 9,434 16.957 159,973 2.02 393 16.821 6,620 2.11
1996 11,857 16.781 198,968 2.01 - - - -
Templeton Growth Securities Fund
September 30, 2000
(unaudited) 19,424 18.543 360,195 2.28 8,450 18.434 155,766 2.37
DECEMBER 31,
1999 24,872 19.466 484,117 2.28 9,008 19.364 174,453 2.37
1998 34,226 16.309 558,162 2.28 8,864 16.238 143,943 2.37
1997 41,433 15.176 628,785 2.28 5,525 15.124 83,558 2.37
1996 40,327 13.560 550,066 2.33 - - - -
Templeton International Securities Fund
September 30, 2000
(unaudited) 21,231 21.303 452,283 2.30 4,113 21.138 86,934 2.39
December 31,
1999 27,313 23.022 628,777 2.30 4,164 22.858 95,194 2.39
1998 44,256 18.437 815,915 2.28 4,427 18.322 81,113 2.37
1997 58,179 17.711 1,030,420 2.29 3,122 17.617 55,008 2.38
1996 64,375 16.081 1,036,583 2.29 - - - -
Templeton International Smaller Companies Fund
September 30, 2000
(unaudited) 889 11.434 10,166 2.51 863 11.389 9,826 2.60
December 31,
1999 1,034 11.441 11,825 2.51 865 11.403 9,864 2.60
1998 1,533 9.364 14,354 2.50 967 9.342 9,037 2.59
1997 1,998 10.825 21,626 2.46 792 10.809 8,557 2.55
19963 1,388 11.145 15,527 2.18+ - - - -
Templeton Pacific Growth Securities Fund
September 30, 2000
(unaudited) 5,284 8.628 45,591 2.48 921 8.561 7,886 2.57
DECEMBER 31,
1999 7,066 10.915 77,144 2.48 1,041 10.838 11,295 2.57
1998 10,669 8.078 86,200 2.50 655 8.028 5,274 2.59
1997 15,833 9.431 149,327 2.43 379 9.381 3,566 2.52
1996 22,061 14.932 330,159 2.39 - - - -
USAllianz VIP Diversified Assets Fund
September 30, 2000
(unaudited) 83 10.446 868 2.40 80 10.437 834 2.49
December 31,
19991 9 10.170 88 2.40+ 1 10.168 15 2.49+
USAllianz VIP Fixed Income Fund
September 30, 2000
(unaudited) 45 10.334 463 2.15 46 10.325 473 2.24
December 31,
19991 13 9.751 124 2.15+ 1 9.749 5 2.24+
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
9. Unit Values - Valuemark II, III, and IV (CONTINUED)
Valuemark II & III Valuemark IV
---------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of
Accumulation Expenses Accumulation Expenses
Units OutstandingAccumulationNet Assetsto Average Units OutstandingAccumulationNet Assetsto Average
(in thousands)Unit Value(in thousands)Net Assets* (in thousands)Unit Value(in thousands)Net Assets*
---------------------------------------------------------------------------------------------------------------------------
USAllianz VIP Growth Fund
September 30, 2000
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(unaudited) 63 $ 10.612 $ 673 2.30 51 $ 10.604 $ 537 2.39
December 31,
19991 21 10.733 226 2.30+ 10 10.731 105 2.39+
* For the nine-month period ended September 30, 2000 (unaudited) and the year
ended December 31, 1999, including the effect of the expenses of the
underlying funds.
+ Annualized.
1 Period from November 12, 1999 (fund commencement) to December 31, 1999.
2 Period from May 1, 1998 (fund commencement) to December 31, 1998.
3 Period from May 1, 1996 (fund commencement) to December 31, 1996.
5 Period from November 8,1996 (fund commencement) to December 31, 1996.
6 Period from May 1, 2000 (fundcommencement) to September 30, 2000.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
10. Unit Values - Valuemark Charter
A summary of accumulation unit values and accumulation units outstanding for
variable annuity contracts and the expense ratios, including expenses of the
underlying funds, for the nine-month period ended September 30, 2000 (unaudited)
and the year ended December 31, 1999 follows.
VALUEMARK CHARTER TRADITIONAL VALUEMARK CHARTER ENHANCED
---------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of
Accumulation Expenses Accumulation Expenses
Units OutstandingAccumulationNet Assetsto Average Units OutstandingAccumulationNet Assetsto Average
(in thousands)Unit Value(in thousands)Net Assets* (in thousands)Unit Value(in thousands)Net Assets*
---------------------------------------------------------------------------------------------------------------------------
Franklin Global Communications Securities Fund
September 30, 2000
<S> <C> <C> <C> <C> <C> <C> <C>
(unaudited) 12 $ 34.358 $ 402 1.92% 8 $ 33.576 $ 276 2.12%
December 31, 1999 5 39.861 213 1.92 7 39.011 275 2.12
Franklin Global Health Care Securities Fund
September 30, 2000
(unaudited) 14 16.710 241 2.22 8 16.630 141 2.42
December 31, 1999 3 9.626 33 2.22 5 9.594 50 2.42
Franklin Growth and Income Fund
September 30, 2000
(unaudited) 13 29.501 388 1.89 16 28.829 450 2.09
December 31, 1999 21 26.792 545 1.90 9 26.22 238 2.10
Franklin High Income Fund
September 30, 2000
(unaudited) 18 20.319 373 1.94 3 19.856 69 2.14
December 31, 1999 20 21.405 429 1.94 1 20.949 18 2.14
Franklin Income Securities Fund
September 30, 2000
(unaudited) 43 28.648 1,233 1.90 9 27.995 252 2.10
December 31, 1999 49 24.923 1,206 1.90 4 24.391 92 2.10
Franklin Large Cap Growth Securities Fund
SEPTEMBER 30, 2000
(UNAUDITED) 37 23.561 873 2.17 22 23.354 522 2.37
December 31, 1999 19 20.337 392 2.17 7 20.188 144 2.37
Franklin Money Market Fund
September 30, 2000
(unaudited) 797 15.723 12,524 1.94 - 15.365 - 2.14
December 31, 1999 562 15.225 8,557 1.94 1 14.901 16 2.14
Franklin Natural Resources Securities Fund
September 30, 2000
(unaudited) 5 14.367 69 2.07 1 14.040 13 2.27
December 31, 1999 5 11.374 62 2.07 - 11.131 6 2.27
Franklin Real Estate Fund
September 30, 2000
(unaudited) 22 27.542 601 1.98 6 26.914 149 2.18
December 31, 1999 20 21.919 429 1.98 1 21.452 14 2.18
Franklin Rising Dividends Securities Fund
September 30, 2000
(unaudited) 14 20.001 284 2.15 10 19.660 196 2.35
December 31, 1999 18 19.156 340 2.16 11 18.857 206 2.36
Franklin Small Cap Fund
SEPTEMBER 30, 2000
(UNAUDITED) 13 30.328 395 2.22 8 30.031 252 2.42
December 31, 1999 32 28.565 904 2.17 3 28.328 79 2.37
Franklin U.S. Government Fund
September 30, 2000
(unaudited) 46 20.172 935 1.92 21 19.712 412 2.12
December 31, 1999 87 19.049 1,647 1.92 12 18.643 217 2.12
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
10. Unit Values - Valuemark Charter (CONTINUED)
Valuemark Charter Traditional Valuemark Charter Enhanced
---------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of
Accumulation Expenses Accumulation Expenses
Units OutstandingAccumulationNet Assetsto Average Units OutstandingAccumulationNet Assetsto Average
(in thousands)Unit Value(in thousands)Net Assets* (in thousands)Unit Value(in thousands)Net Assets*
---------------------------------------------------------------------------------------------------------------------------
Franklin Value Securities Fund
September 30, 2000
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(unaudited) 16 $ 8.831 $ 140 2.21% 3 $ 8.824 $ 24 2.41%
December 31, 1999 14 7.749 108 2.21 3 7.753 21 2.41
Mutual Discovery Securities Fund
SEPTEMBER 30, 2000
(UNAUDITED)17 14.796 255 2.41 16 14.681 228 2.61
December 31, 1999 20 13.779 275 2.42 10 13.692 136 2.62
Mutual Shares Securities Fund
September 30, 2000
(unaudited) 75 14.243 1,066 2.19 28 14.133 389 2.39
December 31, 1999 65 13.362 875 2.19 8 13.278 100 2.39
Templeton Asset Strategy Fund
September 30, 2000
(unaudited) 2 16.976 33 2.22 2 16.791 29 2.42
December 31, 1999 2 17.693 36 2.22 1 17.527 16 2.42
Templeton Developing Markets Securities Fund
September 30, 2000
(unaudited) 26 9.323 243 2.96 12 9.202 114 3.16
December 31, 1999 21 12.331 253 2.82 7 12.189 89 3.02
Templeton Global Income Securities Fund
September 30, 2000
(unaudited) 31 16.454 512 2.06 - 16.079 5 2.26
December 31, 1999 25 17.033 435 2.06 - 16.670 6 2.26
Templeton Growth Securities Fund
SEPTEMBER 30, 2000(UNAUDITED)49 18.764 917 2.28 21 18.520 383 2.48
December 31, 1999 51 19.717 1,012 2.29 15 19.490 313 2.49
Templeton International Securities Fund
September 30, 2000
(unaudited) 166 21.645 3,592 2.32 21 21.275 445 2.52
December 31, 1999 124 23.368 2,895 2.32 14 23.004 303 2.52
Templeton International Smaller Companies Fund
September 30, 2000
(unaudited) 1 11.549 12 2.53 13 11.447 148 2.73
December 31, 1999 - 11.547 4 2.53 4 11.462 51 2.73
Templeton Pacific Growth Securities Fund
September 30, 2000
(unaudited) 1 8.831 6 2.48 11 8.680 95 2.68
December 31, 1999 6 11.121 63 2.51 4 10.948 48 2.71
* For the nine-month period ended September 30, 2000 (unaudited) and the year
ended December 31, 1999, including the effect of the expenses of the
underlying funds.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
11. Unit Values - USAllianz Alterity
A summary of accumulation unit values and accumulation units outstanding for
variable annuity contracts and the expense ratios, including expenses of the
underlying funds, for the period from February 1, 2000 (product inception) to
September 30, 2000 (unaudited) follows.
USALLIANZ ALTERITY TRADITIONAL USALLIANZ ALTERITY ENHANCED
Ratio of Ratio of
Accumulation Expenses Accumulation Expenses
Units OutstandingAccumulationNet Assetsto Average Units OutstandingAccumulationNet Assetsto Average
(in thousands)Unit Value(in thousands)Net Assets* (in thousands)Unit Value(in thousands)Net Assets*
---------------------------------------------------------------------------------------------------------------------------
AIM V.I. Capital Appreciation Fund
September 30, 20001
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(unaudited) 50 $ 11.537 $ 578 2.13+% 11 $ 11.498 $ 132 2.63+%
AIM V.I. Growth Fund
September 30, 2000
(unaudited) 101 11.217 1,137 2.13 24 11.167 273 2.63
AIM V.I. International Equity Fund
September 30, 20001
(unaudited) 37 8.831 326 2.37+ 3 8.802 29 2.87+
AIM V.I. Value Fund
September 30, 20001
(unaudited) 38 9.492 358 2.16+ 19 9.461 179 2.66+
Alger American Growth Portfolio
September 30, 2000
(unaudited) 37 10.798 397 2.19 14 10.750 151 2.69
Alger American Leveraged AllCap Portfolio
SEPTEMBER 30, 2000
(UNAUDITED) 44 11.587 508 2.33 26 11.536 295 2.83
Alger American MidCap Growth Portfolio
September 30, 20001
(unaudited) 44 12.043 531 2.25+ 20 12.003 243 2.75+
Alger American Small Capitalization Portfolio
September 30, 20001
(unaudited) 8 9.150 70 2.30+ 4 9.120 36 2.80+
Davis VA Financial Portfolio
September 30, 20001
(unaudited) 17 12.817 223 2.40+ - 12.775 4 2.90+
Davis VA Real Estate Portfolio
September 30, 20001
(unaudited) 10 11.954 119 2.40+ 1 11.914 14 2.90+
Davis VA Value Portfolio
September 30, 20001
(unaudited) 14 10.837 151 2.40+ 5 10.801 58 2.90+
Franklin Growth and Income Securities Fund
September 30, 2000
(unaudited) 4 28.741 107 2.14 - 27.155 - 2.64
FRANKLIN RISING DIVIDENDS SECURITIES FUND
September 30, 2000
(unaudited) - 19.645 1 2.40 - 18.833 - 2.90
Franklin Small Cap Fund
September 30, 2000
(unaudited) 21 30.038 635 2.47 5 29.332 150 2.97
Franklin U.S. Government Fund
September 30, 2000
(unaudited) 3 19.648 53 2.17 1 18.556 13 2.67
J.P. Morgan International Opportunities Portfolio
September 30, 20001
(unaudited) 20 9.408 191 2.16+ 1 9.377 5 2.66+
J.P. Morgan U.S. Disciplined Portfolio
September 30, 20001
(unaudited) 3 10.110 25 2.60+ 6 10.076 63 3.10+
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
11. Unit Values - USAllianz Alterity (CONTINUED)
USAllianz Alterity Traditional USAllianz Alterity Enhanced
---------------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF
ACCUMULATION EXPENSES ACCUMULATION EXPENSES
UNITS OUTSTANDINGACCUMULATIONNET ASSETSTO AVERAGE UNITS OUTSTANDINGACCUMULATIONNET ASSETS TO AVERAGE
(IN THOUSANDS)UNIT VALUE(IN THOUSANDS)NET ASSETS* (IN THOUSANDS)UNIT VALUE(IN THOUSANDS)NET ASSETS*
Mutual Discovery Securities Fund
September 30, 2000
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(unaudited) 9 $ 14.685 $ 139 2.66% 4 $ 14.414 $ 59 3.16%
Mutual Shares Securities Fund
September 30, 2000
(unaudited) 20 14.082 285 2.44 9 13.823 130 2.94
Oppenheimer Global Securities Fund/VA
September 30, 20001
(unaudited) 38 9.323 354 2.09+ 20 9.292 185 2.59+
Oppenheimer High Income Fund/VA
September 30, 20001
(unaudited) 34 8.981 301 2.15+ - 8.951 2 2.65+
Oppenheimer Main Street Growth & Income Fund/VA
September 30, 20001
(unaudited) 88 9.924 877 2.18+ 10 9.892 98 2.68+
PIMCO VIT High Yield Bond Portfolio
September 30, 20001
(unaudited) 10 9.695 97 2.15+ 4 9.663 39 2.65+
PIMCO VIT StocksPLUS Growth and Income Portfolio
SEPTEMBER 30, 20001
(UNAUDITED) 7 10.081 68 2.05+ - 10.047 7 2.55+
PIMCO VIT Total Return Bond Portfolio
September 30, 20001
(unaudited) 16 10.313 167 2.05+ 2 10.279 22 2.55+
Seligman Global Technology Fund
September 30, 20001
(unaudited) 112 9.661 1,086 2.80+ 34 9.629 332 3.30+
Seligman Small Cap Value Fund
September 30, 20001
(unaudited) 14 12.359 173 2.40+ 1 12.318 6 2.90+
Templeton Developing Markets Securities Fund
September 30, 2000
(unaudited) 5 9.199 48 3.21 1 8.910 9 3.71
Templeton Growth Securities Fund
September 30, 2000
(unaudited) 7 18.480 133 2.53 7 17.900 124 3.03
Templeton Pacific Growth Securities Fund
September 30, 2000
(unaudited) 2 8.633 18 2.73 1 8.272 7 3.23
USALLIANZ VIP DIVERSIFIED ASSETS FUND
September 30, 2000
(unaudited) 17 10.446 173 2.40 - 10.399 - 2.90
USAllianz VIP Fixed Income Fund
September 30, 2000
(unaudited) - 10.334 17 2.15 - 10.288 5 2.65
USAllianz VIP Global Opportunities Fund
September 30, 20001
(unaudited) 4 9.135 33 2.91+ - 9.105 1 3.41+
USAllianz VIP Growth Fund
September 30, 2000
(unaudited) 6 10.612 58 2.30 - 10.565 2 2.80
USAllianz VIP Money Market Fund
September 30, 20001
(unaudited) 45 10.260 462.086 2.30+ 9 10.226 92 2.80+
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
11. Unit Values - USAllianz Alterity (CONTINUED)
USAllianz Alterity Traditional USAllianz Alterity Enhanced
---------------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF
ACCUMULATION EXPENSES ACCUMULATION EXPENSES
UNITS OUTSTANDINGACCUMULATIONNET ASSETSTO AVERAGE UNITS OUTSTANDINGACCUMULATIONNET ASSETSTO AVERAGE
(IN THOUSANDS)UNIT VALUE(IN THOUSANDS)NET ASSETS* (IN THOUSANDS)UNIT VALUE(IN THOUSANDS)NET ASSETS*
Van Kampen LIT Enterprise Portfolio
September 30, 20001
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(unaudited) 4 $ 10.544 $ 44 2.00+% 3 $ 10.510 $ 35 2.50+%
Van Kampen LIT Growth & Income Portfolio
September 30, 20001
(unaudited) 6 11.741 68 2.15+ 3 11.702 31 2.65+
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
11. Unit Values - USAllianz Alterity (CONTINUED)
USAllianz Alterity Optional
---------------------------------------------------------------------------------------------------------------------------
Ratio of
Accumulation Expenses
Units OutstandingAccumulationNet Assets to Average
(in thousands)Unit Value(in thousands)Net Assets*
---------------------------------------------------------------------------------------------------------------------------
AIM V.I. Capital Appreciation Fund
<S> <C> <C> <C> <C>
September 30, 20001 (unaudited) 44 $ 11.514 $ 503 2.43+%
AIM V.I. Growth Fund
September 30, 2000 (unaudited) 41 11.187 460 2.43
AIM V.I. International Equity Fund
SEPTEMBER 30, 20001 (UNAUDITED) 25 8.814 218 2.67+
AIM V.I. Value Fund
September 30, 20001 (unaudited) 45 9.473 430 2.46+
Alger American Growth Portfolio
September 30, 2000 (unaudited) 26 10.769 282 2.49
Alger American Leveraged AllCap Portfolio
September 30, 2000 (unaudited) 30 11.556 343 2.63
Alger American MidCap Growth Portfolio
September 30, 20001 (unaudited) 27 12.019 330 2.55+
Alger American Small Capitalization Portfolio
September 30, 20001 (unaudited) 18 9.132 167 2.60+
Davis VA Financial Portfolio
September 30, 20001 (unaudited) - 12.792 2 2.70+
Davis VA Real Estate Portfolio
September 30, 20001 (unaudited) 44 11.930 524 2.70+
DAVIS VA VALUE PORTFOLIO
September 30, 20001 (unaudited) 45 10.815 488 2.70+
Franklin Growth and Income Securities Fund
September 30, 2000 (unaudited) 4 27.779 119 2.44
Franklin Rising Dividends Securities Fund
September 30, 2000 (unaudited) - 19.153 7 2.70
Franklin Small Cap Fund
September 30, 2000 (unaudited) 12 29.612 347 2.77
Franklin U.S. Government Fund
September 30, 2000 (unaudited) 20 18.985 388 2.47
J.P. Morgan International Opportunities Portfolio
September 30, 20001 (unaudited) 1 9.389 11 2.46+
J.P. Morgan U.S. Disciplined Portfolio
September 30, 20001 (unaudited) 4 10.090 43 2.90+
Mutual Discovery Securities Fund
SEPTEMBER 30, 2000 (UNAUDITED) 2 14.522 23 2.96
Mutual Shares Securities Fund
September 30, 2000 (unaudited) 5 13.926 69 2.74
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
11. Unit Values - USAllianz Alterity (CONTINUED)
USAllianz Alterity Optional
---------------------------------------------------------------------------------------------------------------------------
Ratio of
Accumulation Expenses
Units OutstandingAccumulationNet Assetsto Average
(in thousands)Unit Value(in thousands)Net Assets*
---------------------------------------------------------------------------------------------------------------------------
Oppenheimer Global Securities Fund/VA
<S> <C> <C> <C> <C>
September 30, 20001 (unaudited) 36 $ 9.305 $ 335 2.39+%
Oppenheimer High Income Fund/VA
September 30, 20001 (unaudited) - 8.963 - 2.45+
Oppenheimer Main Street Growth & Income Fund/VA
September 30, 20001 (unaudited) 17 9.905 169 2.48+
PIMCO VIT High Yield Bond Portfolio
SEPTEMBER 30, 20001 (UNAUDITED) 27 9.676 261 2.45+
PIMCO VIT StocksPLUS Growth and Income Portfolio
September 30, 20001 (unaudited) 8 10.061 83 2.35+
PIMCO VIT Total Return Bond Portfolio
September 30, 20001 (unaudited) 9 10.293 98 2.35+
Seligman Global Technology Fund
September 30, 20001 (unaudited) 35 9.641 341 3.10+
Seligman Small Cap Value Fund
September 30, 20001 (unaudited) 6 12.334 80 2.70+
Templeton Developing Markets Securities Fund
September 30, 2000 (unaudited) 7 9.024 67 3.51
Templeton Growth Securities Fund
September 30, 2000 (unaudited) 8 18.130 145 2.83
Templeton Pacific Growth Securities Fund
September 30, 2000 (unaudited) 1 8.415 11 3.03
USALLIANZ VIP DIVERSIFIED ASSETS FUND
September 30, 2000 (unaudited) - 10.418 5 2.70
USAllianz VIP Fixed Income Fund
September 30, 2000 (unaudited) - 10.306 - 2.45
USAllianz VIP Global Opportunities Fund
September 30, 20001 (unaudited) 2 9.117 18 3.21+
USAllianz VIP Growth Fund
September 30, 2000 (unaudited) 1 10.584 7 2.60
USAllianz VIP Money Market Fund
September 30, 20001 (unaudited) 19 10.239 197 2.60+
Van Kampen LIT Enterprise Portfolio
September 30, 20001 (unaudited) 4 10.524 38 2.30+
Van Kampen LIT Growth & Income Portfolio
September 30, 20001 (unaudited) - 11.718 40 2.45+
* For the nine-month period ended September 30, 2000 (unaudited) and the year
ended December 31, 1999, including the effect of the expenses of the
underlying funds.
+ Annualized
1 Period from February 1, 2000 (fund commencement) to September 30, 2000.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANZ LIFE VARIABLE ACCOUNT B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
12. Unit Values - USAllianz Rewards
A summary of accumulation unit values and accumulation units outstanding for
variable annuity contracts and the expense ratios, including expenses of the
underlying funds, for the period from May 1, 2000 (product inception) to
September 30, 2000 (unaudited) follows.
USAllianz Rewards Traditional USAllianz Rewards Enhanced
---------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of
Accumulation Expenses Accumulation Expenses
Units OutstandingAccumulationNet Assetsto Average Units OutstandingAccumulationNet Assetsto Average
(in thousands)Unit Value(in thousands)Net Assets* (in thousands)Unit Value(in thousands)Net Assets*
---------------------------------------------------------------------------------------------------------------------------
AIM V.I. Capital Appreciation Fund
September 30, 20001
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(unaudited) 199 $ 11.518 $ 2,287 2.13+% 50 $ 11.502 $ 576 2.63+%
AIM V.I. Growth Fund
September 30, 2000
(unaudited) 99 11.192 1,112 2.13 76 11.166 853 2.63
AIM V.I. International Equity Fund
September 30, 20001
(unaudited) 94 8.817 830 2.37+ - 8.805 222 2.87+
AIM V.I. Value Fund
September 30, 20001
(unaudited) 128 9.477 1,213 2.16+ 46 9.464 431 2.66+
ALGER AMERICAN GROWTH PORTFOLIO
September 30, 2000
(unaudited) 187 10.774 2,014 2.19 43 10.749 467 2.69
Alger American Leveraged AllCap Portfolio
September 30, 2000
(unaudited) 103 11.561 1,187 2.33 32 11.535 366 2.83
Alger American MidCap Growth Portfolio
September 30, 20001
(unaudited) 64 12.023 771 2.25+ 61 12.007 729 2.75+
Alger American Small Capitalization Portfolio
September 30, 20001
(unaudited) 14 9.135 131 2.30+ 12 9.123 107 2.80+
Davis VA Financial Portfolio
September 30, 20001
(unaudited) 12 12.796 160 2.40+ 27 12.779 342 2.90+
Davis VA Real Estate Portfolio
September 30, 20001
(unaudited) - 11.934 489 2.40+ 8 11.918 100 2.90+
Davis VA Value Portfolio
SEPTEMBER 30, 20001
(UNAUDITED) 41 10.819 439 2.40+ 32 10.804 349 2.90+
Franklin Growth and Income Securities Fund
September 30, 2000
(unaudited) 5 29.247 149 2.14 4 29.145 121 2.64
Franklin Rising Dividends Securities Fund
September 30, 2000
(unaudited) - 19.829 152 2.40 3 19.760 53 2.90
Franklin Small Cap Fund
September 30, 2000
(unaudited) 45 30.067 1,367 2.47 14 29.963 433 2.97
Franklin U.S. Government Fund
September 30, 2000
(unaudited) 41 19.998 824 2.17 1 19.929 12 2.67
J.P. Morgan International Opportunities Portfolio
September 30, 20001
(unaudited) 3 9.392 32 2.16+ 7 9.380 68 2.66+
J.P. Morgan U.S. Disciplined Portfolio
September 30, 20001 (unaudited) 23 10.093 228 2.60+ 18 10.080 177 3.10+
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
12. Unit Values - USAllianz Rewards (CONTINUED)
USAllianz Rewards Traditional USAllianz Rewards Enhanced
---------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of
Accumulation Expenses Accumulation Expenses
Units OutstandingAccumulationNet Assetsto Average Units OutstandingAccumulationNet Assetsto Average
(in thousands)Unit Value(in thousands)Net Assets* (in thousands)Unit Value(in thousands)Net Assets*
---------------------------------------------------------------------------------------------------------------------------
Mutual Discovery Securities Fund
September 30, 2000
<S> <C> <C> <C> <C> <C> <C> <C>
(unaudited) 4 $ 14.668 $ 64 2.66% - $ 14.618 $ 9 3.16%
Mutual Shares Securities Fund
September 30, 2000
(unaudited) 1 14.120 13 2.44 4 14.071 56 2.94
Oppenheimer Global Securities Fund/VA
September 30, 20001
(unaudited) 160 9.308 $ 1,489 2.09+ 25 9.295 234 2.59+
Oppenheimer High Income Fund/VA
September 30, 20001
(unaudited) 66 8.966 588 2.15+ 1 8.954 12 2.65+
Oppenheimer Main Street Growth &
Income Fund/VA
SEPTEMBER 30, 20001
(UNAUDITED) 229 9.908 2,270 2.18+ 47 9.895 461 2.68+
PIMCO VIT High Yield Bond Portfolio
September 30, 20001
(unaudited) 1 9.679 13 2.15+ - 9.666 - 2.65+
PIMCO VIT StocksPLUS Growth
and Income Portfolio
September 30, 20001
(unaudited) 20 10.064 203 2.05+ 17 10.051 169 2.55+
PIMCO VIT Total Return Bond Portfolio
September 30, 20001
(unaudited) 89 10.296 917 2.05+ 3 10.283 28 2.55+
Seligman Global Technology Fund
September 30, 20001
(unaudited) 114 9.645 1,101 2.80+ 74 9.632 717 3.30+
Seligman Small Cap Value Fund
September 30, 20001
(unaudited) 56 12.338 694 2.40+ 5 12.322 57 2.90+
Templeton Developing Markets Securities Fund
September 30, 2000
(unaudited) 6 9.242 55 3.21 - 9.211 - 3.71
TEMPLETON GROWTH SECURITIES FUND
September 30, 2000
(unaudited) 4 18.603 83 2.53 6 18.538 118 3.03
Templeton Pacific Growth Securities Fund
September 30, 2000
(unaudited) - 8.755 - 2.73 1 8.725 13 3.23
USAllianz VIP Diversified Assets Fund
September 30, 2000
(unaudited) 1 10.423 14 2.40 - 10.404 3 2.90
USAllianz VIP Fixed Income Fund
September 30, 2000
(unaudited) - 10.311 66 2.15 1 10.293 12 2.65
USAllianz VIP Global Opportunities Fund
September 30, 20001
(unaudited) 2 9.120 20 2.91+ 1 9.108 10 3.41+
USAllianz VIP Growth Fund
September 30, 2000
(unaudited) 1 10.589 13 2.30 8 10.570 80 2.80
USAllianz VIP Money Market Fund
SEPTEMBER 30, 20001
(UNAUDITED) 525 10.243 5,376 2.30+ 64 10.229 656 2.80+
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Allianz Life Variable Account B
of Allianz Life Insurance Company of North America
Notes to Financial Statements (continued)
September 30, 2000 (unaudited)
12. Unit Values - USAllianz Rewards (CONTINUED)
USAllianz Rewards Traditional USAllianz Rewards Enhanced
---------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of
Accumulation Expenses Accumulation Expenses
Units OutstandingAccumulationNet Assetsto Average Units OutstandingAccumulationNet Assetsto Average
(in thousands)Unit Value(in thousands)Net Assets* (in thousands)Unit Value(in thousands)Net Assets*
---------------------------------------------------------------------------------------------------------------------------
Van Kampen LIT Enterprise Portfolio
September 30, 20001
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(unaudited) 48 $ 10.527 $ 509 2.00+% 14 $ 10.513 $ 149 2.50+%
Van Kampen LIT Growth & Income Portfolio
September 30, 20001
(unaudited) 63 11.722 739 2.15+ - 11.706 - 2.65+
<FN>
* For the nine-month period ended September 30, 2000 (unaudited) and the year
ended December 31, 1999, including the effect of the expenses of the
underlying funds.
+ Annualized
1 Period from May 1, 2000 (product commencement) to September 30, 2000.
</FN>
</TABLE>
<PAGE>
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
a. Financial Statements
The following financial Statements of the Company are included in
Part B hereof.
1. Independent Auditors' Report.
2. Consolidated Balance Sheets as of December 31, 1999 and 1998.
3. Consolidated Statements of Income for the years ended December
31, 1999, 1998 and 1997.
4. Consolidated Statements of Stockholder's Equity for the years
ended December 31, 1999, 1998 and 1997.
5. Consolidated Statements of Cash Flows for the years ended
December 31, 1999, 1998 and 1997.
6. Notes to Consolidated Financial Statements - December 31, 1999,
1998 and 1997.
The following financial statements of the Variable Account are
included in Part B hereof.
1. Statements of Assets and Liabilities as of September 30, 2000
(unaudited).
2. Statements of Operations for the period ended September 30, 2000
(unaudited).
3. Statements of Changes in Net Assets for the period ended September 30,
2000(unaudited).
4. Notes to Financial Statements - September 30, 2000 (unaudited).
1. Independent Auditors' Report.
2. Statements of Assets and Liabilities as of December 31, 1999.
3. Statements of Operations for the year ended December 31, 1999.
4. Statements of Changes in Net Assets for the years ended
December 31, 1999 and 1998.
5. Notes to Financial Statements - December 31, 1999.
b. Exhibits
1. Resolution of Board of Directors of the Company authorizing the
establishment of the Variable Account(1)
2. Not Applicable
3.a. Principal Underwriter's Agreement(2)
3.b. Selling Agreement(6)
4. Individual Variable Annuity Contract(5)
4.a. Waiver of Contingent Deferred Sales Charge Endorsement(5)
4.b. Traditional Death Benefit Endorsement(5)
4.c. Enhanced Death Benefit Endorsement(5)
4.d. Individual Retirement Annuity Endorsement(5)
4.e. Unisex Endorsement(5)
4.f. Pension Plan and Profit Sharing Plan Endorsement(5)
4.g. Group Pension Plan Death Benefit Endorsement(5)
4.h. 403(b) Annuity Endorsement(5)
4.i. Roth IRA Endorsement(5)
5. Application for Individual Variable Annuity Contract(5)
6. (i) Copy of Articles of Incorporation of the Company(1)
(ii) Copy of the Bylaws of the Company(1)
7. Not Applicable
8.a. Form of Fund Participation Agreement between North American
Life and Casualty Company and Franklin Valuemark Funds(1)
8.b. Form of Fund Participation Agreement between AIM Variable
Insurance Funds, Inc., Allianz Life Insurance Company of North
America and NALAC Financial Plans LLC(3)
8.c. Form of Fund Participation Agreement between Alger American
Fund, Allianz Life Insurance Company of North America and Fred
Alger and Company(3)
8.d. Form of Fund Participation Agreement between USAllianz Variable
Insurance Products Trust, Allianz Life Insurance Company of
North America and BISYS Fund Services Limited Partnership(3)
8.e. Form of Fund Participation Agreement between Davis Variable
Account Fund, Inc., Davis Distributors, LLC and Allianz Life
Insurance Company of North America(4)
8.f. Form of Fund Participation Agreement between Van Kampen Life
Investment Trust, Van Kampen Funds, Inc., Van Kampen Asset
Management Inc. and Allianz Life Insurance Company of North
America(4)
8.g. Form of Fund Participation Agreement between Allianz Life
Insurance Company of North America and J.P. Morgan Series Trust
II(4)
8.h. Form of Fund Participation Agreement between Oppenheimer Variable
Account Funds, Oppenheimer Funds Inc. and Allianz Life Insurance
Company of North America(4)
8.i. Form of Fund Participation Agreement between Allianz Life Insurance
Company of North America, PIMCO Variable Insurance Trust, and PIMCO
Fund Distributors, LLC(4)
8.j. Form of Fund Participation Agreement between Seligman Portfolios,
Inc. and Allianz Life Insurance Company of North America(4)
8.k. Form of Fund Participation Agreement between The Prudential Series
Fund, Inc., The Prudential Insurance Company of America, and
Prudential Investment Management Services LLC
9. Opinion and Consent of Counsel
10. Independent Auditors' Consent
11. Not Applicable
12. Not Applicable
13. Calculation of Performance Data
14. Company Organizational Chart(6)
(1) Incorporated by reference to Registrant's Form N-4 (File Nos. 333-06709 and
811-05618) electronically filed on June 24, 1996.
(2) Incorporated by reference to Pre-Effective Amendment No. 1 to Registrant's
Form N-4 (File Nos. 333-06709 and 811-05618) electronically filed on
December 13, 1996.
(3) Incorporated by reference to Registrant's Form N-4 (File Nos. 333-06709 and
811-05618) electronically filed on November 12, 1999.
(4) Incorporated by reference to Registrant's Pre-Effective Amendment to Form
N-4 (File Nos. 333-82329 and 811-05618) electronically filed December 30,
1999.
(5) Incorporated by reference to Form N-4 (File Nos. 333-95729 and 811-05618)
electronically filed January 31, 2000.
(6) Incorporated by reference to Pre-Effective Amendment No. 1 to Registrant's
Form N-4/A (File Nos. 333-82329 and 811-05618) electronically filed on
April 27, 2000.
Item 25. Directors and Officers of the Depositor
The following are the Officers and Directors of the Insurance Company:
Name and Principal Positions and Offices
Business Address with Depositor
- ---------------------------- ---------------------------------
Lowell C. Anderson Chairman of the Board
1750 Hennepin Avenue
Minneapolis, MN 55403
Robert W. MacDonald Director and Chief
1750 Hennepin Avenue Executive Officer
Minneapolis, MN 55403
Margery G. Hughes President and Chief
1750 Hennepin Avenue Administrative Officer
Minneapolis, MN 55403
Mark A. Zesbaugh Senior Vice President and
1750 Hennepin Avenue Chief Financial Officer
Minneapolis, MN 55403
Herbert F. Hansmeyer Director
777 San Marin Drive
Novato, CA 94998
Michael P. Sullivan Director
7505 Metro Boulevard
Minneapolis, MN 55439
Dr. Gerhard Rupprecht Director
Reinsburgstrasse 19
D-70178
Stuttgart, Germany
Edward J. Bonach President-Special Markets Division
1750 Hennepin Avenue
Minneapolis, MN 55403
Robert S. James President - Individual Division
1750 Hennepin Avenue
Minneapolis, MN 55403
Rev. Dennis Dease Director
c/o University of St. Thomas
215 Summit Avenue
St. Paul, MN 55105-1096
James R. Campbell Director
c/o Norwest Corp.
Norwest Center
Sixth & Marquette
Minneapolis, MN 55479-0116
Robert M. Kimmitt Director
Wilmer, Cutler & Pickering
2445 M Street NW
Washington, DC 20037-1420
Brad Barks Senior Vice President -
300 S. Hwy 169 Financial Analysis/M&A
Minneapolis, MN 55426
Charles Kavitsky Senior Vice President -
300 S. Hwy 169 Chief Marketing Officer
Minneapolis, MN 55426
Item 26. Persons Controlled by or Under Common Control with the Depositor or
Registrant
The Company organizational chart is incorporated by reference to Pre-Effective
Amendment No. 1 to Registrant's Form N-4/A (File Nos. 333-82329 and 811-05618).
Item 27. Number of Contract Owners
As of September 29, 2000 there were 122 qualified Contract Owners and 75
non-qualified Contract Owners with Contracts in the separate account.
Item 28. Indemnification
The Bylaws of the Insurance Company provide that:
Each person (and the heirs, executors, and administrators of such person) made
or threatened to be made a party to any action, civil or criminal, by reason of
being or having been a Director, officer, or employee of the corporation (or by
reason of serving any other organization at the request of the corporation)
shall be indemnified to the extent permitted by the laws of the State of
Minnesota, and in the manner prescribed therein.
Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted for directors and officers or controlling persons of the
Insurance Company pursuant to the foregoing, or otherwise, the Insurance Company
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Insurance Company of expenses
incurred or paid by a director, officer or controlling person of the Insurance
Company in the successful defense of any action, suit or proceeding) is asserted
by such director, officer or controlling person in connection with the
securities being registered, the Company will, unless in the opinion of its
counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
Item 29. Principal Underwriters
a. USAllianz Investor Services, LLC (formerly NALAC Financial Plans, LLC)
is the principal underwriter for the Contracts. It also is the principal
underwriter for:
Allianz Life Variable Account A
Preferred Life Variable Account C
b. The following are the officers(managers) and directors (Board of
Governors) of USAllianz Investor Services, LLC:
Positions and Offices
Business Address with Underwriter
- ---------------------- ----------------------
Christopher H. Pinkerton Chairman, Chief Executive Officer, President,
1750 Hennepin Avenue Chief Manager & Director
Minneapolis, MN 55403
Thomas B. Clifford Vice President & Director
1750 Hennepin Avenue
Minneapolis, MN 55403
Catherine L. Mielke Secretary & Compliance Officer
1750 Hennepin Avenue
Minneapolis, MN 55403
Michael M. Ahles Chief Financial Officer, Sr. Vice President
1750 Hennepin Avenue and Treasurer
Minneapolis, MN 55403
Lawrance C. Skibo Executive Vice President
1750 Hennepin Avenue
Minneapolis, MN 55403
Catherine Q. Farley Sr. Vice President & Chief Administrative Officer
1750 Hennepin Avenue
Minneapolis, MN 55403
Cynthia M. Robeck Assistant Vice President
1750 Hennepin Avenue
Minneapolis, MN 55403
Robert S. James Director
1750 Hennepin Avenue
Minneapolis, MN 55403
c. Not Applicable
Item 30. Location of Accounts and Records
Thomas Clifford, whose address is 1750 Hennepin Avenue, Minneapolis, Minnesota
55403 and Delaware Valley Financial Services, USAllianz Service Center, 300
Berwyn Park, Berwyn, Pennsylvania 19312, maintain physical possession of the
accounts, books or documents of the Variable Account required to be maintained
by Section 31(a) of the Investment Company Act of 1940, as amended, and the
rules promulgated thereunder.
Item 31. Management Services
Not Applicable
Item 32. Undertakings
a. Registrant hereby undertakes to file a post-effective amendment to this
registration statement as frequently as is necessary to ensure that the audited
financial statements in the registration statement are never more than sixteen
(16) months old for so long as payment under the variable annuity contracts may
be accepted.
b. Registrant hereby undertakes to include either (1) as part of any
application to purchase a contract offered by the Prospectus, a space that an
applicant can check to request a Statement of Additional Information, or (2) a
postcard or similar written communication affixed to or included in the
Prospectus that the applicant can remove to send for a Statement of Additional
Information.
c. Registrant hereby undertakes to deliver any Statement of Additional
Information and any financial statements required to be made available under
this Form promptly upon written or oral request.
d. Allianz Life Insurance Company of North America ("Company") hereby
represents that the fees and charges deducted under the Contract described in
the Prospectus, in the aggregate, are reasonable in relation to the services
rendered, the expenses to be incurred and the risks assumed by the Company.
REPRESENTATIONS
The Insurance Company hereby represents that it is relying upon a No Action
Letter issued to the American Council of Life Insurance, dated November 28, 1988
(Commission ref. IP-6-88), and that the following provisions have been complied
with:
1. Include appropriate disclosure regarding the redemption restrictions
imposed by Section 403(b)(11) in each registration statement, including the
prospectus, used in connection with the offer of the contract;
2. Include appropriate disclosure regarding the redemption restrictions
imposed by Section 403(b)(11) in any sales literature used in connection with
the offer of the contract;
3. Instruct sales representatives who solicit participants to purchase the
contract specifically to bring the redemption restrictions imposed by Section
403(b)(11) to the attention of the potential participants;
4. Obtain from each plan participant who purchases a Section 403(b) annuity
contract, prior to or at the time of such purchase, a signed statement
acknowledging the participant's understanding of (1) the restrictions on
redemption imposed by Section 403(b)(11), and (2) other investment alternatives
available under the employer's Section 403(b) arrangement to which the
participant may elect to transfer his contract value.
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, as amended, the Registrant certifies that it meets the requirements of
Securities Act Rule 485 (b) for effectiveness of this Registration Statement and
has caused this Registration Statement to be signed on its behalf in the City
of Minneapolis and State of Minnesota, on this 13th day of December, 2000.
ALLIANZ LIFE
VARIABLE ACCOUNT B
(Registrant)
By: ALLIANZ LIFE INSURANCE COMPANY
OF NORTH AMERICA
(Depositor)
By: /S/ SUZANNE J. PEPIN
--------------------------------
Suzanne J. Pepin
ALLIANZ LIFE INSURANCE COMPANY
OF NORTH AMERICA
(Depositor)
By: /S/ SUZANNE J. PEPIN
------------------------------
Suzanne J. Pepin
Pursuant to the requirements of the Securities Act of 1933, this registration
statement has been signed by the following persons in the capacities and on the
dates indicated.
Signature and Title
Lowell C. Anderson* Chairman of the Board 12/13/2000
Lowell C. Anderson
Robert W. MacDonald* Director and 12/13/2000
Robert W. MacDonald Chief Executive Officer
Margery G. Hughes* President and 12/13/2000
Margery G. Hughes Chief Administrative Officer
Mark A. Zesbaugh* Chief Financial Officer and 12/13/2000
Mark A. Zesbaugh Senior Vice President
Herbert F. Hansmeyer* Director 12/13/2000
Herbert F. Hansmeyer
Michael P. Sullivan* Director 12/13/2000
Michael P. Sullivan
Dr. Gerhard Rupprecht* Director 12/13/2000
Dr. Gerhard Rupprecht
Rev. Dennis Dease* Director 12/13/2000
Rev. Dennis Dease
James R. Campbell* Director 12/13/2000
James R. Campbell
Robert M. Kimmitt* Director 12/13/2000
Robert M. Kimmitt
*By Power of Attorney
By: /S/ SUZANNE J. PEPIN
--------------------
Suzanne J. Pepin
Attorney-in-Fact
LIMITED POWER OF ATTORNEY
KNOWN ALL MEN BY THESE PRESENTS, that I, Lowell C. Anderson, Chairman of
the Board of Allianz Life Insurance Company of North America (Allianz Life), a
corporation duly organized under the laws of Minnesota, do hereby appoint Robert
W. MacDonald and Suzanne J. Pepin, each individually as my attorney and agent,
for me, and in my name as Chairman of the Board of Allianz Life on behalf of
Allianz Life, with full power to execute, deliver and file with the Securities
and Exchange Commission all documents required for registration of a security
under the Securities Act of 1933, as amended, and the Investment Company Act of
1940, as amended, and to do and perform each and every act that said attorney
may deem necessary or advisable to comply with the intent of aforesaid Acts.
WITNESS my hand and seal this 3rd day of April 2000.
WITNESS:
/s/ Lowell C. Anderson
_____________________________
LIMITED POWER OF ATTORNEY
KNOWN ALL MEN BY THESE PRESENTS, that I, Robert W. MacDonald, Chief
Executive Officer and a Director of Allianz Life Insurance Company of North
America (Allianz Life), a corporation duly organized under the laws of
Minnesota, do hereby appoint Suzanne J. Pepin as my attorney and agent, for me,
and in my name as Chief Executive Officer and Director of Allianz Life on behalf
of Allianz Life, with full power to execute, deliver and file with the
Securities and Exchange Commission all documents required for registration of a
security under the Securities Act of 1933, as amended, and the Investment
Company Act of 1940, as amended, and to do and perform each and every act that
said attorney may deem necessary or advisable to comply with the intent of
aforesaid Acts.
/s/ Robert W. MacDonald
_______________________
Robert W. MacDonald
WITNESS my hand and seal this 26th day of April 2000.
WITNESS:
/s/ Mary Ann Lemke
_____________________________
LIMITED POWER OF ATTORNEY
KNOWN ALL MEN BY THESE PRESENTS, that I, Margery G. Hughes, President of
Allianz Life Insurance Company of North America (Allianz Life), a corporation
duly organized under the laws of Minnesota, do hereby appoint Robert W.
MacDonald and Suzanne J. Pepin, each individually as my attorney and agent, for
me, and in my name as President of Allianz Life on behalf of Allianz Life, with
full power to execute, deliver and file with the Securities and Exchange
Commission all documents required for registration of a security under the
Securities Act of 1933, as amended, and the Investment Company Act of 1940, as
amended, and to do and perform each and every act that said attorney may deem
necessary or advisable to comply with the intent of aforesaid Acts.
WITNESS my hand and seal this 5th day of April 2000.
WITNESS: /s/ Mary Ann Lemke
/s/ Margery G. Hughes
_______________________
LIMITED POWER OF ATTORNEY
KNOWN ALL MEN BY THESE PRESENTS, that I, Mark A. Zesbaugh, Senior Vice
President, Chief Financial Officer and Assistant Secretary of Allianz Life
Insurance Company of North America (Allianz Life), a corporation duly organized
under the laws of Minnesota, do hereby appoint Robert W. MacDonald and Suzanne
J. Pepin, each individually as my attorney and agent, for me, and in my name as
Senior Vice President, Chief Financial Officer and Assistant Secretary of
Allianz Life on behalf of Allianz Life, with full power to execute, deliver and
file with the Securities and Exchange Commission all documents required for
registration of a security under the Securities Act of 1933, as amended, and the
Investment Company Act of 1940, as amended, and to do and perform each and every
act that said attorney may deem necessary or advisable to comply with the intent
of aforesaid Acts.
WITNESS my hand and seal this 3rd day of April 2000.
WITNESS: /s/ Mark A. Zesbaugh
/s/ Stacey R. Thiele
_______________________
LIMITED POWER OF ATTORNEY
KNOWN ALL MEN BY THESE PRESENTS, that I, Herbert F. Hansmeyer, Director of
Allianz Life Insurance Company of North America (Allianz Life), a corporation
duly organized under the laws of Minnesota, do hereby appoint Robert W.
MacDonald and Suzanne J. Pepin, each individually as my attorney and agent, for
me, and in my name as Director of Allianz Life on behalf of Allianz Life, with
full power to execute, deliver and file with the Securities and Exchange
Commission all documents required for registration of a security under the
Securities Act of 1933, as amended, and the Investment Company Act of 1940, as
amended, and to do and perform each and every act that said attorney may deem
necessary or advisable to comply with the intent of aforesaid Acts.
/s/ Herbert F. Hansmeyer
________________________
Herbert F. Hansmeyer
WITNESS my hand and seal this 4th day of April 2000.
WITNESS:
/s/ David C Marks
__________________
ACKNOWLEDGEMENT
State of Connecticut
County of Fairfield
The foregoing instrument was acknowledged before me Tracy Stroh this 5th day of
April, 2000, by Herbert F. Hansmeyer.
/s/ Tracey Stroh
_________________
Notary Public
LIMITED POWER OF ATTORNEY
KNOWN ALL MEN BY THESE PRESENTS, that I, Michael P. Sullivan, Director of
Allianz Life Insurance Company of North America (Allianz Life), a corporation
duly organized under the laws of Minnesota, do hereby appoint Robert W.
MacDonald and Suzanne J. Pepin, each individually as my attorney and agent, for
me, and in my name as Director of Allianz Life on behalf of Allianz Life, with
full power to execute, deliver and file with the Securities and Exchange
Commission all documents required for registration of a security under the
Securities Act of 1933, as amended, and the Investment Company Act of 1940, as
amended, and to do and perform each and every act that said attorney may deem
necessary or advisable to comply with the intent of aforesaid Acts.
WITNESS my hand and seal this 5th day of April 2000.
WITNESS:
/s/ Michael P. Sullivan
__________________
LIMITED POWER OF ATTORNEY
KNOWN ALL MEN BY THESE PRESENTS, that I, Dr. Gerhard G. Rupprecht, Director
of Allianz Life Insurance Company of North America (Allianz Life), a corporation
duly organized under the laws of Minnesota, do hereby appoint Robert W.
MacDonald and Suzanne J. Pepin, each individually as my attorney and agent, for
me, and in my name as Director of Allianz Life on behalf of Allianz Life, with
full power to execute, deliver and file with the Securities and Exchange
Commission all documents required for registration of a security under the
Securities Act of 1933, as amended, and the Investment Company Act of 1940, as
amended, and to do and perform each and every act that said attorney may deem
necessary or advisable to comply with the intent of aforesaid Acts.
WITNESS my hand and seal this 18th day of April 2000.
WITNESS:
/s/ Gerhard Rupprech
(Dr. Gerhard Rupprecht)
Unterschriftsbeglaubigung
I hereby certify, the the above is the true signature, acknowledged in my
presence of
Dr. Gerhard Rupprecht
Chairman of the Board of Management
Reinsburgstrabe 19,70178 Stuttgart, Germany,
Personally know to me.
Stuttgart, den 18.April 2000
/s/ Dr. Kubler
Dr. Kubler
Notarvetreter
LIMITED POWER OF ATTORNEY
KNOWN ALL MEN BY THESE PRESENTS, that I, Reverand Dennis J. Dease, Director
of Allianz Life Insurance Company of North America (Allianz Life), a corporation
duly organized under the laws of Minnesota, do hereby appoint Robert W.
MacDonald and Suzanne J. Pepin, each individually as my attorney and agent, for
me, and in my name as Director of Allianz Life on behalf of Allianz Life, with
full power to execute, deliver and file with the Securities and Exchange
Commission all documents required for registration of a security under the
Securities Act of 1933, as amended, and the Investment Company Act of 1940, as
amended, and to do and perform each and every act that said attorney may deem
necessary or advisable to comply with the intent of aforesaid Acts.
/s/ Dennis J. Dease
WITNESS my hand and seal this 4th day of April 2000.
WITNESS:
/s/ Donna L Baisden
LIMITED POWER OF ATTORNEY
KNOWN ALL MEN BY THESE PRESENTS, that I, James R. Campbell, Director of
Allianz Life Insurance Company of North America (Allianz Life), a corporation
duly organized under the laws of Minnesota, do hereby appoint Robert W.
MacDonald and Suzanne J. Pepin, each individually as my attorney and agent, for
me, and in my name as Director of Allianz Life on behalf of Allianz Life, with
full power to execute, deliver and file with the Securities and Exchange
Commission all documents required for registration of a security under the
Securities Act of 1933, as amended, and the Investment Company Act of 1940, as
amended, and to do and perform each and every act that said attorney may deem
necessary or advisable to comply with the intent of aforesaid Acts.
/s/ James R. Campbell
WITNESS my hand and seal this 5th day of April 2000.
WITNESS:
/s/ Vicki L. Plymate
____________________
LIMITED POWER OF ATTORNEY
KNOWN ALL MEN BY THESE PRESENTS, that I, Robert M. Kimmitt, Director of
Allianz Life Insurance Company of North America (Allianz Life), a corporation
duly organized under the laws of Minnesota, do hereby appoint Robert W.
MacDonald and Suzanne J. Pepin, each individually as my attorney and agent, for
me, and in my name as Director of Allianz Life on behalf of Allianz Life, with
full power to execute, deliver and file with the Securities and Exchange
Commission all documents required for registration of a security under the
Securities Act of 1933, as amended, and the Investment Company Act of 1940, as
amended, and to do and perform each and every act that said attorney may deem
necessary or advisable to comply with the intent of aforesaid Acts.
WITNESS my hand and seal this 5th day of April 2000.
/s/ Robert M. Kimmitt
______________________
Robert M. Kimmitt, Esq.
WITNESS:
/s/ illegible
__________________
<PAGE>
EXHIBITS
TO
POST-EFFECTIVE AMENDMENT NO. 1 TO
FORM N-4
ALLIANZ LIFE VARIABLE ACCOUNT B
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
INDEX TO EXHIBITS
EXHIBIT
EX-99.B8.k. Form of Fund Participation Agreement between The Prudential Series
Fund, Inc., The Prudential Insurance Company of America, and
Prudential Investment Management Services LLC
EX-99.B9 Opinion and Consent of Counsel
EX-99.B10 Independent Auditors' Consent
Ex-99.B13 Calculation of Performance Data
