REPORT FROM THE PRESIDENT
Dear Contract Owner:
It gives me great pleasure to present the performance of the sub-accounts of
Annuity Investors Variable Account A for the six month and twelve month periods
ending December 31, 1996 . The company utilized eleven portfolios, managed by
Janus, Dreyfus and Merrill Lynch.
As of December 31, 1996, the six-month and twelve-month performance results for
all portfolios, as measured by the percentage change in unit values for the
period, net of all mortality, expense and contract maintenance charges, were as
follows:
<TABLE>
<CAPTION>
Equity Portfolios: Six Months Ending Year Ending
December 31, 1996 December 31, 1996
<S> <C> <C>
Janus Aspen Series Worldwide Growth Portfolio 5.36% 24.94%
Janus Aspen Series Aggressive Growth Portfolio (7.06%) 4.12%
Dreyfus Variable Investment Fund
Capital Appreciation Portfolio 10.93% 21.50%
The Dreyfus Socially Responsible Growth Fund, Inc. 9.00% 17.23%
Dreyfus Stock Index Fund 9.23% 18.52%
Merrill Lynch VFS Basic Value Focus Fund 6.35% 16.70%
Balanced Portfolios:
Merrill Lynch VFS Global Strategy Focus Fund 5.87% 9.27%
Janus Aspen Series Balanced Portfolio 6.36% 12.24%
Income Portfolios:
Merrill Lynch VFS High Current Income Fund 4.32% 7.40%
Janus Aspen Series Short-Term Bond Portfolio 0.46% 0.15%
Cash Portfolio:
Merrill Lynch Domestic Money Market Fund (0.38%) 1.39%
</TABLE>
In the second half of 1996, the stock market, as measured by the Standard &
Poor's 500 Index, showed a 8.34% increase and the NASDAQ Composite Index
increased by 11.62% The bond market, as measured by Lehman Brothers Aggregate
Index, increased by 3.06% over the same period.
Annuity Investors selected Dreyfus, Janus and Merrill Lynch for inclusion in its
Variable Account A based on the level of professional investment expertise
present in each management company and their dedication to in-depth fundamental
research. We offer a broad range of investment options to allow you the
flexibility to implement your own personal investment strategy and to change
your mix of investments as your objectives change over time.
We look forward to continuing to serve you in the future.
Sincerely,
Robert A. Adams
President
<PAGE>
Annuity Investors Life Insurance Company(Registered Trademark)
P. O. Box 5423
Cincinnati, Ohio 45201-5423
1-800-789-6771
Annuity Investors(ServiceMark)
Variable Account A
of
for
December 31, 1996
Annual Report to Contract Owners
This report is for the information of the contract owners and participants of
the Annuity Investors Life Insurance Company and the Annuity Investors Variable
Account A. It is authorized for distribution to other persons only when preceded
or accompanied by a current prospectus which contains complete information,
including charges and expenses.
<PAGE>
ANNUITY INVESTORSSM VARIABLE ACCOUNT A
Annuity Investors Life Insurance Company UNDERWRITTEN AND
P. O. Box 5423 DISTRIBUTED BY:
Cincinnati, Ohio 45201-5423 American Annuity Group
AAG Securities, Inc.
Member NASD
250 East Fifth Street
Cincinnati, Ohio 45202
INDEPENDENT AUDITORS
Ernst & Young LLP
DIRECTORS Robert Allen Adams
President of Annuity Investors Life Insurance Company(R) and President of Great
American(R) Life Insurance Company
Stephen Craig Lindner
President of American Annuity GroupSM
William Jack Maney II
Senior Vice President, Treasurer and Chief Financial Officer of American Annuity
Group
James Michael Mortensen
Executive Vice President of Annuity Investors Life Insurance Company and
Executive Vice President of Great American Life Insurance Company
Mark Francis Muething
Senior Vice President, General Counsel and Secretary of American Annuity Group
Jeffrey Scott Tate
Senior Vice President of American Annuity Group
OFFICERS
Robert Allen Adams President
James Michael Mortensen Executive Vice President & Secretary
Thomas Kevin Liguzinski Senior Vice President
Mark Francis Muething Senior Vice President, General Counsel & Secretary
Michael Joseph O'Connor Senior Vice President & Chief Actuary
Charles Kent McManus Senior Vice President
Robert Eugene Allen Vice President & Treasurer
Arthur Ronald Greene III Vice President
Betty Marie Kasprowicz Vice President & Secretary
Lynn E. Laswell Assistant Vice President
William Jack Maney II Assistant Treasurer
Thomas E. Mischell Assistant Treasurer
<PAGE>
ANNUAL REPORT TO CONTRACT OWNERS
DECEMBER 31, 1996
TABLE OF CONTENTS PAGE
Report from the President
Annuity InvestorsSM Variable Account A Sub-Accounts
Janus Aspen Series December 31, 1996 Annual Report
Janus Aspen Series Aggressive Growth Portfolio (James P. Goff) J1
Janus Aspen Aggressive Growth Portfolio Schedule of Investments J2
Janus Aspen Series Worldwide Growth Portfolio (Helen Young Hayes) J4
Janus Aspen Series Worldwide Growth Portfolio Schedule of Investments J5
Janus Aspen Series Balanced Portfolio (Blaine P. Rollins) J10
Janus Aspen Balanced Portfolio Schedule of Investments J11
Janus Aspen Series Short-Term Bond Portfolio (Sandy R. Rufenacht) J15
Janus Aspen Short-Term Bond Portfolio Schedule of Investments J16
Statements of Operations J19
Statements of Assets and Liabilities J19
Statements of Changes in Net Assets J20
Financial Highlights J22
Notes to Financial Statements J24
Report of Idependent Accountants J27
Dreyfus Variable Investment Fund,
Capital Appreciation Portfolio Annual Report December 31, 1996
Dreyfus VIF, Capital Appreciation Portfolio Letter to Shareholders D2
Dreyfus VIF, Capital Appreciation Portfolio Average Annual Total Returns D4
Dreyfus VIF, Capital Appreciation Portfolio Statement of Investments D5
Dreyfus VIF, Capital Appreciation Portfolio Statement of Assets and
Liabilities D8
Dreyfus VIF, Capital Appreciation Portfolio Statement of Operations D9
Dreyfus VIF, Capital Appreciation Portfolio Statement of Changes in Net
Assets D10
Dreyfus VIF, Capital Appreciation Portfolio Financial Highlights D11
Dreyfus VIF, Capital Appreciation Portfolio Notes to Financial
Statements D12
Dreyfus VIF, Capital Appreciation Portfolio Review Report of Independent
Accountants D14
Dreyfus VIF, Capital Appreciation Portfolio Important Tax Information D15
The Dreyfus Socially Responsible Growth Fund, Inc.
Annual Report December 31, 1996
The Dreyfus Socially Responsible Growth Fund, Inc. Letter to Shareholders D17
The Dreyfus Socially Responsible Growth Fund, Inc. Average Annual Total
Returns D20
The Dreyfus Socially Responsible Growth Fund, Inc. Statement of Investments D21
The Dreyfus Socially Responsible Growth Fund, Inc. Statement of Assets and
Liabilities D22
The Dreyfus Socially Responsible Growth Fund, Inc. Statement of Operations D23
<PAGE>
TABLE OF CONTENTS PAGE
The Dreyfus Socially Responsible Growth Fund, Inc. Statement of Changes
in Net Assets D25
The Dreyfus Socially Responsible Growth Fund, Inc. Financial Highlights D26
The Dreyfus Socially Responsible Growth Fund, Inc. Notes to Financial
Statements D27
The Dreyfus Socially Responsible Growth Fund, Inc.
Review Report of Independent Accountants D29
The Dreyfus Socially Responsible Growth Fund, Inc. Important Tax
Information D30
Dreyfus Stock Index Fund Annual Report December 31, 1996
Dreyfus Stock Index Fund Letter to Shareholders D31
Dreyfus Stock Index Average Annual Total Returns D33
Dreyfus Stock Index Fund Statement of Investments D34
Dreyfus Stock Index Fund Statement of Assets and Liabilit D40
Dreyfus Stock Index Fund Statement of Operations D41
Dreyfus Stock Index Fund Statement of Changes in Net Assets D42
Dreyfus Stock Index Fund Financial Highlights D43
Dreyfus Stock Index Fund Notes to Financial Highlights D44
Dreyfus Stock Index Fund Report of Independent Accountants D45
Dreyfus Stock Index Fund Proxy Results D46
Merrill Lynch Variable Series Funds, Inc. Annual Report December 31, 1996
Merrill Lynch Variable Series Funds, Inc.
Merrill Lynch Basic Value Focus Fund Letter to Shareholders December 31, 1996 M1
Merrill Lynch Variable Series Funds, Inc.
Merrill Lynch Domestic Money Market Fund Letter to Shareholders December 31,
1996 M1
Merrill Lynch Variable Series Funds, Inc.
Merrill Lynch Global Strategy Focus Fund Letter to Shareholders December 31,
1996 M2
Merrill Lynch Variable Series Funds, Inc.
Merrill Lynch High Current Income Fund Letter to Shareholders December 31,
1996 M3
Merrill Lynch Variable Series Funds, Inc.
Merrill Lynch Basic Value Focus Fund Proxy Results M4
Merrill Lynch Variable Series Funds, Inc.
Merrill Lynch Domestic Money Market Fund Proxy Results M4
Merrill Lynch Variable Series Funds,Inc.
Merrill Lynch Global Strategy Focus Fund Proxy Results M5
Merrill Lynch Variable Series Funds, Inc.
Merrill Lynch High Current Income Fund Proxy Results M5
Merrill Lynch Variable Series Funds, Inc. Total Returns M6
Merrill Lynch Variable Series Funds, Inc. Average Annual Total Returns M7
Merrill Lynch Variable Series Funds, Inc.
Merrill Lynch Basic Value Focus Fund Schedule of Investments M7
Merrill Lynch Variable Series Funds, Inc.
Merrill Lynch Domestic Money Market Fund Schedule of Investments M11
Merrill Lynch Variable Series Funds, Inc.
Merrill Lynch Global Strategy Focus Fund Schedule of Investments M13
Merrill Lynch Variable Series Funds, Inc.
Merrill Lynch High Current Income Fund Schedule of Investments M19
Merrill Lynch Variable Series Funds, Inc. Statement of Assets and
Liabilities M25
Merrill Lynch Variable Series Funds, Inc. Statement of Operations M28
Merrill Lynch Variable Series Funds, Inc. Statement of Changes in Net
Assets M31
Merrill Lynch Variable Series Funds, Inc. Financial Highlights M35
Merrill Lynch Variable Series Funds, Inc. Notes to Financial Statements M39
Merrill Lynch Variable Series Funds, Inc. Independent Auditors' Report M43
<PAGE>
The SEC file numbers for the funds whose financial statements are
included herein are as follows:
Registrant SEC File Number:
Merrill Lynch Variable Series Funds, Inc. 811-03920
-Basic Value Focus Fund
-Global Strategy Focus Fund
-High Current Income Fund
-Domestic Money Market Fund
Dreyfus Socially Responsible Growth Fund, Inc. 811-07044
Dreyfus Life & Annuity Index Fund, Inc. 811-05719
-Dreyfus Stock Index Fund
Dreyfus Variable Investment Fund 811-05125
-Capital Appreciation Portfolio
Janus Aspen Series 811-07736
-Worldwide Growth Portfolio
-Aggressive Growth Portfolio
-Balanced Portfolio
-Short-Term Bond Portfolio
