FEDERATED SMALL CAP STRATEGIES FUND II
(a portfolio of Federated Insurance Series)
SUPPLEMENT TO PROSPECTUS DATED MAY 21, 1999.
Please add the following as the third paragraph under the section entitled
"Who Manages the Fund?"
"BERNARD J. PICCHI
Bernard J. Picchi has been the Fund's Portfolio Manager since February
2000. Mr. Picchi joined Federated in October 1999 as a Senior Vice
President/ Director of U.S. Equity Research for the Fund's Adviser. From
July 1994 through September 1999, Mr. Picchi was a Managing Director for
Lehman Brothers where he initially served as head of the energy sector
group. During 1995 and most of 1996, he served as U.S. Director of Stock
Research and in September 1996, he was named Growth Stock Strategist. Mr.
Picchi holds a B.S. in foreign service from Georgetown University. He is a
Chartered Financial Analyst."
Aash Shah and Grant McKay remain as a portfolio managers of the Fund.
February 16, 2000
[Graphic]
Federated Securities Corp., Distributor
Cusip 313916876
G02583-02 (2/00)
