ANNUITY INVESTORS[SERVICEMARK] VARIABLE ACCOUNT A
OF
FOR
ANNUITY INVESTORS[SERVICEMARK] LIFE INSURANCE COMPANY
THE COMMODORE THE COMMODORE
NAUTICUS[REGISTERED] AMERICUS[SERVICEMARK]
DECEMBER 31, 1997
ANNUAL REPORT TO CONTRACT OWNERS
<PAGE>
ANNUAL REPORT TO CONTRACT HOLDERS
DECEMBER 31, 1997 - VARIABLE ACCOUNT A
Table Of Contents Page
Letter From The President 8
ANNUITY INVESTORS VARIABLE ACCOUNT A -
FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 1997 AND 1996
WITH REPORTS OF INDEPENDENT AUDITORS
-----------------------------------------------------------
Report Of Independent Auditors 13
Audited Financial Statements
Statement Of Assets And Liabilities - Current Year 14
Statement Of Assets And Liabilities - Prior Year 16
Statement Of Operations - Current Year 17
Statement Of Changes In Net Assets - Current Year 18
Statements Of Operations And Statements Of Changes
In Net Assets - Prior Year 21
Notes To Financial Statements 23
The Dreyfus Corporation
- -----------------------
Dreyfus VIF Small Cap Portfolio 31
Letter To Shareholders 32
Statement Of Investments 37
Statement Of Assets And Liabilities 40
Statement Of Operations 41
Statement Of Changes In Net Assets 42
Financial Highlights 43
Notes To Financial Statements 44
Report Of Ernst & Young Llp, Independent Auditors 47
Important Tax Information 48
Dreyfus VIF Capital Appreciation Portfolio 49
Letter To Shareholders 50
Statement Of Investments 53
Statement Of Assets And Liabilities 56
Statement Of Operations 57
Statement Of Changes In Net Assets 58
Financial Highlights 59
Notes To Financial Statements 60
Report Of Ernst & Young Llp, Independent Auditors 62
Important Tax Information 63
<PAGE>
ANNUAL REPORT TO CONTRACT HOLDERS - CONT.
DECEMBER 31, 1997 - VARIABLE ACCOUNT A
Table Of Contents Page
Dreyfus VIF Growth And Income Portfolio 65
Letter To Shareholders 66
Statement Of Investments 71
Statement Of Assets And Liabilities 73
Statement Of Operations 74
Statement Of Changes In Net Assets 75
Financial Highlights 76
Notes To Financial Statements 77
Report Of Ernst & Young Llp, Independent Auditors 80
The Dreyfus Socially Responsible Growth Fund, Inc. 81
Letter To Shareholders 82
Statement Of Investments 86
Statement Of Assets And Liabilities 88
Statement Of Operations 89
Statement Of Changes In Net Assets 90
Financial Highlights 91
Notes To Financial Statements 92
Report Of Ernst & Young Llp, Independent Auditors 94
Important Tax Information 95
Dreyfus Stock Index 97
Letter To Shareholder 98
Statement Of Investments 101
Statement Of Assets And Liabilities 106
Statement Of Operations 107
Statement Of Changes In Net Assets 108
Financial Highlights 109
Report Of Independent Accountants 112
Important Tax Information 112
Janus Capital Corporation 113
- -------------------------
Janus Aspen Aggressive Growth Portfolio 114
Market Review 114
Portfolio Strategy 114
Stock Highlights 114
The Outlook 114
Performance 115
Schedule Of Investments 115
Summary Of Investment By Country 117
Forward Currency Contracts 117
<PAGE>
Annual Report To Contract Holders - Cont.
December 31, 1997 - Variable Account A
Table Of Contents Page
Janus Aspen Worldwide Growth Portfolio 118
1997 In Review 118
Portfolio Review 118
Looking Ahead 118
Performance 119
Schedule Of Investments 119
Summary Of Investment By Country 123
Forward Currency Contracts 123
Janus Aspen Balanced Portfolio 124
The Year In Review 124
Stock Highlights 124
Current Outlook 124
Schedule Of Investments 125
Summary Of Investments By Country 127
Forward Currency Contracts 127
Notes To Schedules Of Investments 128
Statement Of Assets And Liabilities 129
Janus Aspen Aggressive Growth Portfolio 129
Janus Aspen Worldwide Growth Portfolio 129
Janus Aspen Balanced Portfolio 129
Statement Of Operations 129
Janus Aspen Aggressive Growth Portfolio 129
Janus Aspen Worldwide Growth Portfolio 129
Janus Aspen Balanced Portfolio 129
Statement Of Changes In Net Assets 130
Janus Aspen Aggressive Growth Portfolio 130
Janus Aspen Worldwide Growth Portfolio 130
Janus Aspen Balanced Portfolio 130
Financial Highlights - Institutional Shares 131
Janus Aspen Aggressive Growth Portfolio 131
Janus Aspen Worldwide Growth Portfolio 131
Janus Aspen Balanced Portfolio 131
Financial Highlights - Retirement Shares 132
Janus Aspen Aggressive Growth Portfolio 132
Janus Aspen Worldwide Growth Portfolio 132
Janus Aspen Balanced Portfolio 132
Notes To Financial Statements 133
Report Of Independent Accountants 137
<PAGE>
ANNUAL REPORT TO CONTRACT HOLDERS
DECEMBER 31, 1997 - VARIABLE ACCOUNT A
Table Of Contents Page
Merrill Lynch Variable Series Funds, Inc. 139
- -----------------------------------------
Merrill Lynch Variable Series Funds, Inc. - Basic Value Focus Fund
Letter To Shareholders 140
Schedule Of Investments 143
Statement Of Assets And Liabilities 145
Statement Of Operations 146
Statements Of Changes In Net Assets 147
Financial Highlights 148
Notes To Financial Statements 150
Independent Auditors' Report 152
Merrill Lynch Variable Series Funds, Inc. - Domestic Money Market Fund
Letter To Shareholders 153
Schedule Of Investments 154
Statement Of Assets And Liabilities 156
Statement Of Operations 157
Statements Of Changes In Net Assets 158
Financial Highlights 159
Notes To Financial Statements 160
Independent Auditors' Report 161
Merrill Lynch Variable Series Funds, Inc. - Global Strategy Focus Fund
Letter To Shareholders 162
Schedule Of Investments 164
Statements Of Assets And Liabilities 171
Statement Of Operations 172
Statements Of Changes In Net Assets 173
Financial Highlights 174
Notes To Financial Statements 175
Independent Auditors' Report 178
Merrill Lynch Variable Series Funds, Inc. - High Current Income Fund
Letter To Shareholders 179
Schedule Of Investments 182
Statement Of Assets And Liabilities 190
Statement Of Operations 191
Statements Of Changes In Net Assets 192
Financial Highlights 193
Notes To Financial Statements 194
Independent Auditors' Report 196
<PAGE>
ANNUAL REPORT TO CONTRACT HOLDERS
DECEMBER 31, 1997 - VARIABLE ACCOUNT A
Table Of Contents Page
PBHG Insurance Series Fund, Inc. 199
- --------------------------------
PBHG Technology & Communications Portfolio 199
Letter To Shareholders 200
Schedule Of Investments 203
Statement Of Assets And Liabilities 205
Statement Of Operations 206
Statement Of Changes In Net Assets 207
Financial Highlights 208
Notes To Financial Statements 209
Report Of Independent Accountants 211
PBHG Growth Ii Portfolio 213
Letter To Shareholders 214
The Pilgrim Baxter Discipline 215
Aggregate Total Return 216
Statement Of Net Assets 217
Statement Of Operations 219
Statement Of Changes In Net Assets 220
Financial Highlights 221
Notes To Financial Statements 223
Report Of Independent Accountants 224
Strong Opportunity Fund II, Inc. 225
- --------------------------------
Strong Opportunity Fund II, Inc. 225
Investment Review 226
Financial Information 227
Schedule Of Investments In Securities 228
Statement Of Assets And Liabilities 230
Statement Of Operations 231
Statement Of Changes In Net Assets 232
Notes To Financial Statements 233
Financial Highlights 235
Report Of Independent Accountants 236
<PAGE>
ANNUAL REPORT TO CONTRACT HOLDERS
DECEMBER 31, 1997 - VARIABLE ACCOUNT A
Table Of Contents Page
Morgan Stanley Universal Funds Inc. 237
- -----------------------------------
Overview And Statements Of Net Assets By Portfolio
U.s. Real Estate Portfolio 239
Fixed Income Portfolio 245
Statement Of Operations And Changes In Net Assets 250
Financial Highlights 252
Notes To Financial Statements 254
Report Of Independent Accountants 258
Federal Tax Information 259
Annuity Investors Variable Account A Directors And Officers 261
<PAGE>
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, 1997 . The account features seventeen portfolios, managed by
Janus, Dreyfus, Merrill Lynch, Morgan Stanley, Pilgrim Baxter and Strong.
As of December 31, 1997, 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>
Six Months Ending Year Ending
December 31, 1997 December 31, 1997
----------------- -----------------
<S> <C> <C>
Global Portfolio:
Janus Aspen Series Worldwide Growth Portfolio 2.08% 20.65%
AGGRESSIVE GROWTH PORTFOLIOS:
Janus Aspen Series Aggressive Growth Portfolio 9.10% 11.28%
PBHG Insurance Series Fund, Inc. -
PBHG Technology & Communications Portfolio .25% 3.25%
GROWTH PORTFOLIOS:
Dreyfus VIF Small Cap Portfolio 7.52% 15.32%
PBHG Insurance Series Fund, Inc. -
PBHG Growth II Portfolio 2.24% 6.62%
Strong Opportunity Fund II, Inc. 12.44% 23.91%
Dreyfus VIF Capital Appreciation Portfolio 5.37% 26.48%
The Dreyfus Socially Responsible Growth Fund, Inc. 9.73% 26.86%
Merrill Lynch VSF Basic Value Focus Fund 6.15% 19.14%
Dreyfus Stock Index Fund 9.70% 31.32%
GROWTH AND INCOME PORTFOLIO:
Dreyfus VIF Growth and Income Portfolio 5.74% 14.78%
REAL ESTATE PORTFOLIO:
Morgan Stanley Universal Funds Inc. -
U.S. Real Estate Portfolio 12.96% 16.78%
BALANCED PORTFOLIOS:
Merrill Lynch VSF Global Strategy Focus Fund 2.93% 10.57%
Janus Aspen Series Balanced Portfolio 8.03% 20.60%
INCOME PORTFOLIOS:
Merrill Lynch VSF High Current Income Fund 3.94% 9.63%
Morgan Stanley Universal Funds Inc. -
Fixed Income Portfolio 5.56% 8.58%
MONEY MARKET PORTFOLIO:
Merrill Lynch VSF Domestic Money Market Fund 1.62% 3.30%
</TABLE>
In the second half of 1997, the stock market, as measured by the Standard &
Poor's 500 Index, showed a 9.64 % increase and the NASDAQ Composite Index
increased by 8.90 %.The bond market, as measured by Lehman Brothers Aggregate
Index, increased by 6.36 % over the same period.
<PAGE>
Based on the level of professional investment expertise present in each
management company and their dedication to in-depth fundamental research,
Annuity Investors selected Dreyfus, Janus, Merrill Lynch, Morgan Stanley,
Pilgrim Baxter and Strong for inclusion in its Variable Account A. This broad
range of investment options allows you the flexibility to implement your own
personal investment strategy and to change your mix of investments as your
objectives change over time.
It gives me great pleasure to present this performance and we look forward to
continuing to serve you in the future.
Sincerely,
Robert A. Adams
President
<PAGE>
ANNUITY INVESTORS
VARIABLE ACCOUNT A
FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1997 AND 1996
WITH REPORT OF INDEPENDENT AUDITORS
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A
FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1997 AND 1996
CONTENTS
Report of Independent Auditors............................................1
Audited Financial Statements
Statement of Assets and Liabilities - Current Year........................2
Statement of Assets and Liabilities - Prior Year..........................4
Statements of Operations - Current Year...................................5
Statements of Changes in Net Assets - Current Year........................6
Statements of Operations and Statements of Changes
in Net Assets - Prior Year..............................................9
Notes to Financial Statements............................................11
<PAGE>
ERNST & YOUNG LLP 1300 Chiquita Center Phone: 513-621-6454
250 East Fifth Street
Cincinnati, Ohio 45202
Report of Independent Auditors
Contractholders of Annuity Investors Variable Account A
and
Board of Directors of Annuity Investors Life Insurance Company
We have audited the accompanying statements of assets and liabilities of the
Annuity Investors Variable Account A (comprised of the Dreyfus Variable
Investment Fund Capital Appreciation Portfolio, Dreyfus Variable Investment Fund
Growth and Income Portfolio, Dreyfus Variable Investment Fund Small Cap
Portfolio, Dreyfus Socially Responsible Growth Fund, Inc., Dreyfus Stock Index
Fund, Janus Aspen Series Aggressive Growth Portfolio, Janus Aspen Series
Worldwide Growth Portfolio, Janus Aspen Series Balanced Portfolio, Janus Aspen
Series Short-Term Bond Portfolio, Merrill Lynch Variable Series Funds, Inc.
Basic Value Focus Fund, Merrill Lynch Variable Series Funds, Inc. Global
Strategy Focus Fund, Merrill Lynch Variable Series Funds, Inc. High Current
Income Fund, Merrill Lynch Variable Series Funds, Inc. Domestic Money Market
Fund, Morgan Stanley Universal Funds, Inc. Fixed Income Portfolio, Morgan
Stanley Universal Funds, Inc. U.S. Real Estate Portfolio, PBHG Insurance Series
Fund, Inc. Growth II Portfolio, PBHG Insurance Series Fund, Inc. Technology &
Communications Portfolio and Strong Funds Opportunity Fund II Sub-Accounts) as
of December 31, 1997 and 1996, and the related statements of operations and
changes in net assets for the years then ended. These financial statements are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1997 and 1996, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of each of the respective
sub-accounts constituting the Annuity Investors Variable Account A as of
December 31, 1997 and 1996, and the results of their operations and changes in
their net assets for the years then ended in conformity with generally accepted
accounting principles.
/s/ Ernst & Young LLP
Cincinnati, Ohio
February 3, 1998
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1997
<TABLE>
<CAPTION>
Assets: Shares Cost
------ ----
<S> <C> <C> <C>
Investments in portfolio shares,
at net asset value (Note 2):
Dreyfus Variable Investment Fund:
Capital Appreciation Portfolio............ 140,369.889 $ 3,586,392 $ 3,916,320
Growth and Income Portfolio............... 26,988.061 585,651 560,812
Small Cap Portfolio....................... 18,735.866 1,118,725 1,070,567
Dreyfus Funds:
Socially Responsible Growth
Fund, Inc............................. 83,872.063 1,957,506 2,094,285
Stock Index Fund.......................... 202,885.198 4,860,174 5,224,294
Janus Aspen Series:
Aggressive Growth Portfolio............... 124,254.001 2,247,391 2,553,420
Worldwide Growth Portfolio................ 288,619.142 6,340,150 6,750,802
Balanced Portfolio........................ 337,438.946 5,473,066 5,895,058
Short-Term Bond Portfolio................. 7,446.572 74,035 66,126
Merrill Lynch Variable Series Funds, Inc.:
Basic Value focus Fund.................... 63,965.078 955,064 1,013,207
Global Strategy Focus Fund................ 15,966.291 234,211 234,864
High Current Income Fund.................. 70,683.985 812,648 814,279
Domestic Money Market Fund................ 764,922.240 764,922 764,922
Morgan Stanley Universal Funds, Inc.:
Fixed Income Portfolio.................... 7,372.126 79,156 76,744
U.S. Real Estate.......................... 20,939.568 231,982 238,921
PBHG Insurance Series Fund, Inc.:
Growth II Portfolio....................... 16,267.143 180,184 174,872
Technology & Communications
Portfolio............................ 51,008.507 547,507 530,999
Strong Funds:
Opportunity Fund II....................... 20,165.037 430,658 437,581
------------
Total cost..................................... $ 30,479,422
- --------------------------------------------------------------------------------------------------
Total assets................................................................... 32,418,073
Liabilities:
Amounts due to Annuity Investors Life Insurance Company (Note 4)............. 0
- --------------------------------------------------------------------------------------------------
Net assets.................................................................... $32,418,073
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUITY INVESTORS VARIABLE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
December 31, 1997
Net assets attributable to variable annuity contract holders (Note 2): Units Unit Value
----------- ----------
<S> <C> <C> <C>
Dreyfus Variable Investment Fund:
Capital Appreciation Portfolio - Basic contract................... 247,118.575 $15.594553 3,853,704
Capital Appreciation Portfolio - Enhanced contract................ 3,990.613 15.690822 62,616
Growth and Income Portfolio - Basic contract...................... 48,865.286 11.475350 560,746
Growth and Income Portfolio - Enhanced contract................... 5.708 11.498113 66
Small Cap Portfolio - Basic contract.............................. 86,150.930 12.145032 1,046,306
Small Cap Portfolio - Enhanced contract........................... 1,993.698 12.169119 24,261
Dreyfus Funds:
Socially Responsible Growth Fund, Inc. - Basic contract........... 132,957.488 15.126449 2,011,174
Socially Responsible Growth Fund, Inc. - Enhanced contract........ 5,460.625 15.220020 83,111
Stock Index Fund - Basic contract................................. 324,713.323 15.879169 5,156,178
Stock Index Fund - Enhanced contract.............................. 4,263.339 15.977173 68,116
Janus Aspen Series:
Aggressive Growth Portfolio - Basic contract...................... 207,227.419 12.217744 2,531,852
Aggressive Growth Portfolio - Enhanced contract................... 1,754.459 12.293313 21,568
Worldwide Growth Portfolio - Basic contract....................... 425,739.592 15.742391 6,702,159
Worldwide Growth Portfolio - Enhanced contract.................... 3,070.952 15.839608 48,643
Balanced Portfolio - Basic contract............................... 409,917.307 14.073772 5,769,083
Balanced Portfolio - Enhanced contract............................ 8,896.063 14.160835 125,975
Short-Term Bond Portfolio - Basic contract........................ 3,967.559 10.890671 43,210
Short-Term Bond Portfolio - Enhanced contract..................... 2,091.259 10.958058 22,916
Merrill Lynch Variable Series Funds, Inc.:
Basic Value Focus Fund - Basic contract........................... 68,181.594 14.408954 982,426
Basic Value Focus Fund - Enhanced contract........................ 2,123.159 14.497904 30,781
Global Strategy Focus Fund - Basic contract....................... 17,615.512 12.486612 219,958
Global Strategy Focus Fund - Enhanced contract.................... 1,186.434 12.563763 14,906
High Current Income Fund - Basic contract......................... 65,756.981 12.189961 801,575
High Current Income Fund - Enhanced contract...................... 1,036.359 12.258690 12,704
Domestic Money Market Fund - Basic contract....................... 697,535.841 1.079946 753,301
Domestic Money Market Fund - Enhanced contract.................... 10,686.456 1.087469 11,621
Morgan Stanley Universal Funds, Inc.:
Fixed Income Portfolio - Basic contract........................... 7,144.949 10.740991 76,744
Fixed Income Portfolio - Enhanced contract........................ 0.000 10.762308 0
U.S. Real Estate Portfolio - Basic contract....................... 19,438.406 12.291156 238,921
U.S. Real Estate Portfolio - Enhanced contract.................... 0.000 12.315552 0
PBHG Insurance Series Fund, Inc.:
Growth II Portfolio - Basic contract.............................. 15,905.540 10.661135 169,571
Growth II Portfolio - Enhanced contract........................... 496.211 10.682296 5,301
Technology & Communications Portfolio - Basic contract............ 51,276.959 10.323925 529,380
Technology & Communications Portfolio - Enhanced contract......... 156.518 10.344412 1,619
Strong Funds:
Opportunity Fund II - Basic contract.............................. 35,542.297 12.311565 437,581
Opportunity Fund II - Enhanced contract........................... 0.000 12.335975 0
- -------------------------------------------------------------------------------------------------------------------------------
Net assets attributable to variable annuity contract holders................................. 32,418,073
- -------------------------------------------------------------------------------------------------------------------------------
Net assets................................................................................... $ 32,418,073
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
<TABLE>
<CAPTION>
Assets:
Investments in portfolio shares, at net asset value (Note 2): Shares Cost
-------------- --------------
<S> <C> <C> <C>
Dreyfus Variable Investment Fund:
Capital Appreciation Portfolio..................................... 18,967.$36 406,745 $ 416,902
Dreyfus Funds:
Socially Responsible Growth Fund, Inc.............................. 9,116.438 183,359 183,149
Stock Index Fund................................................... 17,818.125 353,102 361,352
Janus Aspen Series:
Aggressive Growth Portfolio........................................ 32,665.778 599,092 595,824
Worldwide Growth Portfolio........................................ 34,327.515 643,967 667,326
Balanced Portfolio................................................. 40,102.354 583,384 592,312
Short-Term Bond Portfolio.......................................... 4,399.742 44,349 43,865
Merrill Lynch Variable Series Funds, Inc.:
Basic Value Focus Fund............................................. 5,695.788 79,600 83,956
Global Strategy Focus Fund......................................... 1,754.771 22,862 24,339
High Current Income Fund........................................... 6,938.501 78,251 79,030
Domestic Money Market Fund......................................... 340,994.99 341,054 341,054
---------------
Total cost......................................................... $ 3,335,765
- --------------------------------------------------------------------------------------------------------------------------------
Total assets............................................................................. 3,389,109
Liabilities:
Amounts due to Annuity Investors Life Insurance Company (Note 4)................................................ 8,687
- -------------------------------------------------------------------------------------------------------------------------------
Net assets............................................................................................ $ 3,380,422
Net assets attributable to variable annuity contract holders (Note 2): Units Unit Value
----------------- ----------------
Dreyfus Variable Investment Funds:
Capital Appreciation Portfolio - Basic contract................... 33,424.286 $12.330543 $ 412,140
Capital Appreciation Portfolio - Enhanced contract................ 313.603 12.369954 3,879
Dreyfus Funds:
Socially Responsible Growth Fund, Inc. - Basic contract........... 15,316.028 11.924561 182,637
Socially Responsible Growth Fund, Inc. - Enhanced contract........ 0.000 11.962818 0
Stock Index Fund - Basic contract................................. 29,203.177 12.092195 353,131
Stock Index Fund - Enhanced contract.............................. 600.306 12.130821 7,282
Janus Aspen Series:
Aggressive Growth Portfolio - Basic contract...................... 52,219.342 10.979832 573,359
Aggressive Growth Portfolio - Enhanced contract................... 1,910.271 11.015008 21,042
Worldwide Growth Portfolio - Basic contract....................... 50,730.352 13.048360 661,947
Worldwide Growth Portfolio - Enhanced contract.................... 272.267 13.090061 3,564
Balanced Portfolio - Basic contract............................... 49,603.384 11.670308 578,886
Balanced Portfolio - Enhanced contract............................ 1,024.467 11.707739 11,994
Short-Term Bond Portfolio - Basic contract........................ 4,216.270 10.332080 43,563
Short-Term Bond Portfolio - Enhanced contract..................... 17.440 10.365199 181
Merrill Lynch Variable Series Funds, Inc.:
Basic Value Focus Fund - Basic contrac............................ 6,820.503 12.094664 82,492
Basic Value Focus Fund - Enhanced contract........................ 96.296 12.133299 1,168
Global Strategy Focus Fund - Basic contract....................... 2,114.707 11.294096 23,884
Global Strategy Focus Fund - Enhanced contract.................... 30.061 11.330202 341
High Current Income Fund - Basic contract......................... 6,837.357 11.119068 76,025
High Current Income Fund - Enhanced contract...................... 255.389 11.148637 2,847
Domestic Money Market Fund - Basic contract....................... 325,331.820 1.041216 338,741
Domestic Money Market Fund - Enhanced contract.................... 1,260.991 1.045819 1,319
- --------------------------------------------------------------------------------------------------------------------------------
Net assets attributable to variable annuity contract holders 3,380,422
- --------------------------------------------------------------------------------------------------------------------------------
Net assets............................................................................ $ 3,380,422
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANNUITY INVESTORS VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997
====================================================================================================================================
Dreyfus Variable Investment Fund Dreyfus Funds
-------------------------------------------- -----------------------------
Growth Socially
Capital and Small Responsible Stock
Appreciation Income Cap Growth Index
Portfolio Portfolio Portfolio Fund, Inc. Fund
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Investment income:
Dividends from investments in portfolio shares............$ 31,931 $ 35,214 $ 53,513 $ 65,284 $ 167,780
Expenses:
Mortality and expense risk fees (Note 4).................. 24,987 1,729 2,571 13,118 29,248
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss)........................ 6,944 33,485 50,942 52,166 138,532
Net realized gain (loss) and unrealized appreciation
(depreciation) on investments:
Net realized gain on sale of investments in portfolio
portfolio shares...................................... 10,026 1,311 10 8,354 3,459
Net change in unrealized appreciation
(depreciation) of investments in portfolio shares...... 319,771 (24,839) (48,158) 136,989 355,870
- ---------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments in portfolio shares.. 329,797 (23,528) (48,148) 145,343 359,329
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations........................... $ 336,741 $ 9,957 $ 2,794 $ 197,509 $ 497,861
================================================================================================================================
Morgan
Stanley
Universal
Merrill Lynch Variable Series Funds, Inc. Funds
-------------------------------------------------------------- ----------
Basic Global High Domestic U.S.
Value Strategy Current Money Fixed
Focus Focus Income Market Income
Fund Fund Fund Fund Portfolio
===================================================================================================================================
Investment income:
Dividends from investments in portfolio shares............ $ 9,192 $ 1,268 $ 33,292 $ 41,589 $ 4,192
Expenses:
Mortality and expense risk fees (Note 4).................. 6,537 1,537 4,852 11,904 217
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss)......................... 2,655 (269) 28,440 29,685 3,975
Net realized gain (loss) and unrealized appreciation
(depreciation) on investments:
Net realized gain on sale of investments in
portfolio shares....................................... 3,825 2,375 471 0 186
Net change in unrealized appreciation
(depreciation) of investments in portfolio shares...... 53,787 (823) 853 0 (2,412)
- --------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments in portfolio shares... 57,612 1,552 1,324 0 (2,226)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations............................. $ 60,267 $ 1,283 $ 29,764 $ 29,685 $ 1,749
================================================================================================================================
The accompanying notes are an integral part of these financial statements.
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A (continued)
STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997
Janus Aspen Series
-------------------------------------------------------
Short-
Aggressive Worldwide Term
Growth Growth Balanced Bond
Portfolio Portfolio Portfolio Portfolio
Investment income:
Dividends from investments in portfolio shares............ $ 0 $ 60,959 $ 113,010 $ 11,320
Expenses:
Mortality and expense risk fees (Note 4).................. 20,223 44,109 36,816 746
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss)........................ (20,223) 16,850 76,194 10,574
Net realized gain (loss) and unrealized appreciation
(depreciation) on investments:
Net realized gain on sale of investments in portfolio
portfolio shares...................................... 1,204 9,006 9,629 158
Net change in unrealized appreciation
(depreciation) of investments in portfolio shares...... 309,297 387,292 413,065 (7,425)
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments in portfolio shares.. 310,501 396,298 422,694 (7,267)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations........................... $ 290,278 $ 413,148 $ 498,888 $ 3,307
====================================================================================================================================
Morgan Stanley
Universal PBHG Insurance Strong
Funds Series Fund, Inc. Funds
--------------------- -------------------------- ------------------------
U.S. Technology
Real Growth and Opportunity
Estate II Communications Fund
Portfolio Portfolio Portfolio II Total
====================================================================================================================================
Investment income:
Dividends from investments in portfolio shares............ $ 7,455 $ 0 $ 0 $ 407 $ 636,406
Expenses:
Mortality and expense risk fees (Note 4).................. 727 767 2,092 948 203,128
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss)......................... 6,728 (767) (2,092) (541) 433,278
Net realized gain (loss) and unrealized appreciation
(depreciation) on investments:
Net realized gain on sale of investments in
portfolio shares....................................... 448 109 898 483 51,952
Net change in unrealized appreciation
(depreciation) of investments in portfolio shares...... 6,939 (5,312) (16,509) 6,923 1,885,308
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments in portfolio shares... 7,387 (5,203) (15,611) 7,406 1,937,260
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations.............................. $ 14,115 $ (5,970) $ (17,703) $ 6,865 $2,370,538
===================================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
==================================================================================================================================
Dreyfus Variable Investment Fund Dreyfus Funds
-------------------------------------------------- --------------------
Growth Socially
Capital and Small Responsible
Appreciation Income Cap Growth
Portfolio Portfolio Portfolio Fund, Inc.
==================================================================================================================================
Changes from operations:
<S> <C> <C> <C> <C>
Net investment income (loss) ................... $ 6,944 $ 33,485 $ 50,942 $ 52,166
Net realized gain on sale of investments in
portfolio shares.............................. 10,026 1,311 10 8,354
Net change in unrealized appreciation
(depreciation) of investments in
portfolio shares............................. 319,771 (24,839) (48,158) 136,989
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations.............................. 336,741 9,957 2,794 197,509
Changes from principal transactions:
Contract purchase payments...................... 2,587,775 473,969 833,543 1,445,588
Contract redemptions............................ (114,166) (18,372) (3,025) (51,480)
Net transfers (to) from fixed account........... 689,951 95,258 237,255 320,031
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from principal
transactions............................ 3,163,560 550,855 1,067,773 1,714,139
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets............ 3,500,301 560,812 1,070,567 1,911,648
Net assets, beginning of period...................... 416,019 0 0 182,637
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period............................ $ 3,916,320 $ 560,812 $ 1,070,567 $ 2,094,285
================================================================================================================================
Merrill Lynch Variable Series Funds, Inc.
--------------------------------------------------------------------
Basic Global High Domestic
Value Strategy Current Money
Focus Focus Income Market
Fund Fund Fund Fund
================================================================================================================================
Changes from operations:
Net investment income (loss)..................... $ 2,655 $ $ (269) $ 28,440 $ 29,685
Net realized gain on sale of investments in
portfolio shares.............................. 3,825 2,375 471 0
Net change in unrealized appreciation
(depreciation) of investments in
portfolio shares.............................. 53,787 (823) 853 0
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations............................... 60,267 1,283 29,764 29,685
Changes from principal transactions:
Contract purchase payments....................... 782,172 182,783 646,791 1,766,603
Contract redemptions ............................ (34,859) (11,021) (8,576) (28,653)
Net transfers (to) from fixed
account.................................... 121,967 37,593 67,428 (1,342,773)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from principal
transactions............................ 869,280 209,356 705,643 395,177
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets............ 929,547 210,639 735,407 424,862
Net assets, beginning of period...................... 83,660 24,225 78,872 340,060
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period............................ $ 1,013,207 $ 234,864 $ 814,279 $ 764,922
The accompanying notes are an integral part of these financial statements.
================================================================================================================================
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A (continued)
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1997
================================================================================================================================
Dreyfus
Funds Janus Aspen Series
-------------- -----------------------------------------------------------
Short-
Stock Aggressive Worldwide Term
Index Growth Growth Balanced Bond
Fund Portfolio Portfolio Portfolio Portfolio
=================================================================================================================================
Changes from operations:
Net investment income (loss) ................... $ 138,532 $(20,223) $ 16,850 $ 76,194 $ 10,574
Net realized gain on sale of investments in
portfolio shares.............................. 3,459 1,204 9,006 9,629 158
Net change in unrealized appreciation
(depreciation) of investments in
portfolio shares............................. 355,870 309,297 387,292 413,065 (7,425)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations.............................. 497,861 290,278 413,148 498,888 3,307
Changes from principal transactions:
Contract purchase payments...................... 3,887,862 1,590,929 4,759,590 4,181,625 29,866
Contract redemptions............................ (82,415) (57,933) (153,014) (140,016) (283)
Net transfers (to) from fixed account........... 560,574 135,745 1,065,566 763,682 (10,508)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from principal
transactions............................ 4,366,020 1,668,741 5,672,143 4,805,290 19,075
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets............ 4,863,881 1,959,019 6,085,291 5,304,178 22,382
Net assets, beginning of period...................... 360,413 594,401 665,511 590,880 43,744
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period............................ $ 5,224,294 $2,553,420 $ 6,750,802 $ 5,895,058 $ 66,126 `
===================================================================================================================================
Morgan Stanley PBHG Insurance Strong
Universal Funds Series Fund, Inc. Funds
--------------------------- ---------------------------- ----------
U.S. Technology
Fixed Real Growth and Opportunity
Income Estate II Communications Fund
Portfolio Portfolio Portfolio Portfolio II Total
===================================================================================================================================
Changes from operations:
Net investment income (loss)..................... $ 3,975 $ 6,728 $ (767) $ (2,092) $ (541) $ 433,278
Net realized gain on sale of investments in
portfolio shares.............................. 186 448 109 898 483 51,952
Net change in unrealized appreciation
(depreciation) of investments in
portfolio shares.............................. (2,412) 6,939 (5,312) (16,509) 6,923 1,885,308
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations............................... 1,749 14,115 (5,970) (17,703) 6,865 2,370,538
Changes from principal transactions:
Contract purchase payments....................... 60,217 158,252 158,200 315,811 346,824 24,208,399
Contract redemptions ............................ (2,721) (3,572) 0 (10,266) 0 (720,373)
Net transfers (to) from fixed 17,500 70,126 22,642 243,157 83,892 3,179,086
account....................................
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from principal
transactions............................ 74,995 224,806 180,842 548,702 430,716 26,667,113
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets............ 76,744 238,921 174,872 530,999 437,581 29,037,651
Net assets, beginning of period...................... 0 0 0 0 0 3,380,422
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period............................ $ 76,744 $ 238,921 $174,872 $ 530,999 $ 437,581 $32,418,073
The accompanying notes are an integral part of these financial statements.
===================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUITY INVESTORS VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
YEAR ENDED DECEMBER 31, 1997
Basic Contracts
================================================================================================================
Dreyfus Variable Investment Fund Dreyfus Funds
------------------------------------- -------------------------
Growth Socially
Capital and Small Responsible Stock
Appreciation Income Cap Growth Index
Portfolio Portfolio Portfolio Fund, Inc. Fund
<S> <C> <C> <C> <C> <C>
================================================================================================================
Units outstanding, December 31, 1996 33,424.286 0.000 0.000 15,316.028 29,203.177
Units purchased 224,280.056 50,518.305 86,407.351 122,765.393 302,515.480
Units redeemed (10,585.767) (1,653.019) (256.421) (5,123.933) (7,005.334)
----------- ---------- ---------- ----------- -----------
Units outstanding December 31, 1997 247,118.575 48,865.286 86,150.930 132,957.488 324,713.323
=========== ========== ========== =========== ===========
================================================================================================================
================================================================================================
Janus Aspen Series
----------------------------------------------------
Short-
Aggressive Worldwide Term
Growth Growth Balanced Bond
Portfolio Portfolio Portfolio Portfolio
================================================================================================
Units outstanding, December 31, 1996 52,219.342 50,730.352 49,603.384 4,216.270
Units purchased 177,772.496 390,022.123 379,211.522 772.196
Units redeemed (22,764.419) (15,012.883) (18,897.599) (1,020.907)
----------- ----------- ----------- ----------
Units outstanding December 31, 1997 207,227.419 425,739.592 409,917.307 3,967.559
=========== ========== =========== =========
================================================================================================
<PAGE>
=======================================================================================================
Merrill Lynch Variable Series Funds, Inc.
---------------------------------------------------------
Basic Global High Domestic
Value Strategy Current Money
Focus Focus Income Market
Fund Fund Fund Fund
=======================================================================================================
Units outstanding, December 31, 1996 6,820.503 2,114.707 6,837.357 325,331.820
Units purchased 63,713.297 16,649.421 60,146.745 1,834,941.088
Units redeemed (2,352.206) (1,148.616) (1,227.121) (1,462,737.067)
---------- ---------- ---------- --------------
Units outstanding December 31, 1997 68,181.594 17,615.512 65,756.981 697,535.841
========== ========== ========== ==============
=======================================================================================================
===================================================================================================================
Morgan Stanley PBHG Insurance Strong
Universal Funds Series Fund, Inc. Funds
------------------------ --------------------------- ------------
U.S. Technology
Fixed Real Growth and Opportunity
Income Estate II Communications Fund
Portfolio Portfolio Portfolio Portfolio II
===================================================================================================================
Units outstanding, December 31, 1996 0.000 0.000 0.000 0.000 0.000
Units purchased 7,618.399 19,733.721 15,908.128 53,379.692 36,045.579
Units redeemed (473.450) (295.315) (2.588) (2,102.733) (503.282)
--------- ---------- ---------- ---------- ----------
Units outstanding December 31, 1997 7,144.949 19,438.406 15,905.540 51,276.959 35,542.297
========= ========== ========== ========== ==========
===================================================================================================================
The accompanying notes are an integral part of these financial statements
</TABLE>
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
YEAR ENDED DECEMBER 31, 1997
Enhanced Contracts
<TABLE>
<CAPTION>
==============================================================================================================
Dreyfus Variable Investment Fund Dreyfus Funds
---------------------------------------- ----------------------
Growth Socially
Capital and Small Responsible Stock
Appreciation Income Cap Growth Index
Portfolio Portfolio Portfolio Fund, Inc. Fund
<S> <C> <C> <C> <C> <C>
==============================================================================================================
Units outstanding, December 31, 1996 313.603 0.000 0.000 0.000 600.306
Units purchased 3,924.489 5.708 1,993.698 5,841.203 3,940.642
Units redeemed (247.479) 0.000 0.000 (380.578) (277.609)
----------- ------- ---------- ----------- ----------
Units outstanding December 31, 1997 3,990.613 5.708 1,993.698 5,460.625 4,263.339
=========== ======= ========== =========== ==========
==============================================================================================================
================================================================================================
Janus Aspen Series
-------------------------------------------------------
Short-
Aggressive Worldwide Term
Growth Growth Balanced Bond
Portfolio Portfolio Portfolio Portfolio
===============================================================================================
Units outstanding, December 31, 1996 1,910.271 272.267 1,024.467 17.440
Units purchased 1,568.503 2,943.182 8,513.034 2,073.819
Units redeemed (1,724.315) (144.497) (641.438) 0.000
---------- -------------- ------------- ----------
Units outstanding December 31, 1997 1,754.459 3,070.952 8,896.063 2,091.259
============ ============== ============= ==========
================================================================================================
<PAGE>
==========================================================================================
Merrill Lynch Variable Series Funds, Inc.
-------------------------------------------------
Basic Global High Domestic
Value Strategy Current Money
Focus Focus Income Market
Fund Fund Fund Fund
==========================================================================================
Units outstanding, December 31, 1996 96.296 30.061 255.389 1,260.991
Units purchased 2,026.863 1,253.336 1,020.714 10,698.722
Units redeemed 0.000 (96.963) (239.744) (1,273.257)
--------- --------- --------- ----------
Units outstanding December 31, 1997 2,123.159 1,186.434 1,036.359 10,686.456
========= ========= ========= ==========
==========================================================================================
==========================================================================================================
Morgan Stanley PBHG Insurance Strong
Universal Funds Series Fund, Inc. Funds
----------------------- --------------------------- ------------
U.S. Technology
Fixed Real Growth and Opportunity
Income Estate II Communications Fund
Portfolio Portfolio Portfolio Portfolio II
==========================================================================================================
Units outstanding, December 31, 1996 0.000 0.000 0.000 0.000 0.000
Units purchased 0.000 0.000 496.211 469.962 0.000
Units redeemed 0.000 0.000 0.000 (313.444) 0.000
----- ----- ------- -------- -----
Units outstanding December 31, 1997 0.000 0.000 496.211 156.518 0.000
===== ===== ======= ======= =====
==========================================================================================================
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
================================================================================================================================
Dreyfus VIF* Dreyfus Funds
------------ ---------------------
Socially
Capital Responsible Stock
Appreciation Growth Index
Portfolio Fund, Inc. Fund
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Dividends from Investments in portfolio shares.............................................. $ 3,207 $ 6,574 $5,938
Expenses:
Mortality and expense risk fees (Note 4)... ................................................ 883 512 939
- ----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income................................................................. 2,324 6,062 4,999
Net realized gain (loss) and unrealized appreciation (depreciation) on Investments:
Net realized gain (loss) on sale of Investments In portfolio shares........................ 90 289 512
Net change in unrealized appreciation (depreciation) of Investments in portfolio shares.... 10,157 (209) 8,250
- ----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on Investments in portfolio shares.................................... $10,247 80 8,762
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (decrease) in net assets from operations............................ $12,571 $ 6,142 $13,761
==================================================================================================================================
*Variable Investment Fund
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
================================================================================================================================
Dreyfus VIF* Dreyfus Funds
------------ ---------------------
Socially
Capital Responsible Stock
Appreciation Growth Index
Portfolio Fund, Inc. Fund
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Changes from operation:
Net Investment Income...................................................................... $ 2,324 $ 6,062 $ 4,999
Net realized gain (loss) on sale of Investments in portfolio shares........................ 90 289 512
Net change in unrealized appreciation (depreciation) of Investments in portfolio shares.... 10,157 (209) 8,250
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (decrease) in net assets from operations...................................... 12,571 6,142 13,761
Changes from principal transactions:
Contract purchase payments................................................................. 412,062 171,247 339,471
Contract redemptions....................................................................... (457) (1,164) (1,044)
Net transfers (to) from fixed account...................................................... (8,157) 6,412 8,225
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from principal transactions................................ 403,448 176,495 346,652
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase in net assets....................................................... 416,019 182,637 360,413
Net assets, beginning of period................................................................. 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period....................................................................... $416,019 $182,637 360,413
==================================================================================================================================
*Variable Investment Fund
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
================================================================================================================================
Janus Aspen Series
-----------------------------------
Aggressive Worldwide
Growth Growth Balanced
Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Dividends from Investments in portfolio shares.............................................. $ 638 $ 4,200 $6,684
Expenses:
Mortality and expense risk fees (Note 4)..................................................... 1,423 1,815 1,431
- ----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income................................................................. (785) 2,385 5,253
Net realized gain (loss) and unrealized appreciation (depreciation) on Investments:
Net realized gain (loss) on sale of Investments In portfolio shares........................ 173 2,393 711
Net change in unrealized appreciation (depreciation) of Investments in portfolio shares.... (3,268) 23,360 8,927
- ----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on Investments in portfolio shares.................................... $(3,095) 25,753 9,638
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (decrease) in net assets from operations............................ $(3,880) $28,138 $14,891
==================================================================================================================================
*Variable Investment Fund
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
================================================================================================================================
Janus Aspen Series
-----------------------------------
Aggressive Worldwide
Growth Growth Balanced
Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Changes from operation:
Net Investment Income...................................................................... $ (785) $ 2,385 $ 5,253
Net realized gain (loss) on sale of Investments in portfolio shares........................ 173 2,393 711
Net change in unrealized appreciation (depreciation) of Investments in portfolio shares.... (3,268) 23,360) 8,927
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (decrease) in net assets from operations...................................... (3,880) 28,138 14,891
Changes from principal transactions:
Contract purchase payments................................................................. 586,354 631,446 571,341
Contract redemptions....................................................................... (2,136) (1,623) (476)
Net transfers (to) from fixed account...................................................... 14,063 7,550 5,124
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from principal transactions................................ 598,281 637,373 575,989
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase in net assets....................................................... 594,401 665,511 590,880
Net assets, beginning of period................................................................. 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period....................................................................... $594,401 $665,511 590,880
==================================================================================================================================
*Variable Investment Fund
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
================================================================================================================================
Merrill Lynch Variable
-------- -----------------------
Short- Basic Global High
Term Value Strategy Current
Bond Focus Focus Income
Portfolio Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Dividends from Investments in portfolio shares.............................................. $ 980 $ 93 $ 0 $ 862
Expenses:
Mortality and expense risk fees (Note 4)..................................................... 122 296 114 157
- ----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income................................................................. 858 203) (114) 705
Net realized gain (loss) and unrealized appreciation (depreciation) on Investments:
Net realized gain (loss) on sale of Investments In portfolio shares........................ (0) 496 0 (10)
Net change in unrealized appreciation (depreciation) of Investments in portfolio shares.... (484) 4,356 1,476 778
- ----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on Investments in portfolio shares.................................... (484) 4,852 1,476 768
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (decrease) in net assets from operations............................ $ 374 $4,649 $ 1,362 $ 1,473
==================================================================================================================================
*Variable Investment Fund
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
================================================================================================================================
Merrill Lynch Variable
-------- -----------------------
Short- Basic Global High
Term Value Strategy Current
Bond Focus Focus Income
Portfolio Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Changes from operation:
Net Investment Income...................................................................... $ 858 $ (203) $ (114) $ 705
Net realized gain (loss) on sale of Investments In portfolio shares........................ (0) 496 0 (10)
Net change in unrealized appreciation (depreciation) of Investments in portfolio shares.... (484) 4,356 1,476 778
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (decrease) in net assets from operations...................................... 374 4,649 1,362 1,473
Changes from principal transactions:
Contract purchase payments................................................................. 43,280 80,350 22,977 76,120
Contract redemptions....................................................................... 0 (166) (52) (252)
Net transfers (to) from fixed account...................................................... 90 (1,173) (62) 1,531
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from principal transactions................................ 43,370 79,011 22,863 77,399
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase in net assets....................................................... 43,744 83,660 24,225 78,872
Net assets, beginning of period................................................................. 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period....................................................................... $43,744 $ 83,660 $ 24,225 $78,872
===================================================================================================================================
*Variable Investment Fund
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
================================================================================================================================
Series Funds, Inc.
----------------------
Domestic
Money
Market
Fund Total
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Dividends from Investments in portfolio shares.............................................. $ 4,007 $33,183
Expenses:
Mortality and expense risk fees (Note 4)..................................................... 995 8,687
- ----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income................................................................. 3,012 24,496
Net realized gain (loss) and unrealized appreciation (depreciation) on Investments:
Net realized gain (loss) on sale of Investments In portfolio shares........................ 0 4,654
Net change in unrealized appreciation (depreciation) of Investments in portfolio shares.... 0 53,343
- ----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on Investments in portfolio shares.................................... 0 57,997
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (decrease) in net assets from operations............................ $ 3,012 $82,493
==================================================================================================================================
*Variable Investment Fund
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
================================================================================================================================
Series Funds, Inc.
----------------------
Domestic
Money
Market
Fund Total
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Changes from operation:
Net Investment Income...................................................................... $ 3,012 $ 24,496
Net realized gain (loss) on sale of Investments in portfolio shares........................ 0 4,654
Net change in unrealized appreciation (depreciation) of Investments in portfolio shares.... 0 53,343
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (decrease) in net assets from operations...................................... 3,012 82,493
Changes from principal transactions:
Contract purchase payments................................................................. 403,339 3,337,987
Contract redemptions....................................................................... 0 (7,370)
Net transfers (to) from fixed account...................................................... (66,291) (32,688)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from principal transactions................................ 337,048 3,297,929
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase in net assets....................................................... 340,060 3,380,422
Net assets, beginning of period................................................................. 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period....................................................................... $340,060 $3,380,422
===================================================================================================================================
*Variable Investment Fund
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUITY INVESTORS VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
YEAR ENDED DECEMBER 31, 1996
Basic Contracts
===================================================================================================================================
Dreyfus VIF* Dreyfus Funds Janus Aspen Series
------------ ------------------- ---------------------------------------------------
Socially Short-
Capital Responsible Stock Aggressive Worldwide Term
Appreciation Growth Index Growth Growth Balanced Bond
Portfolio Fund, Inc. Fund Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
===================================================================================================================================
Units outstanding, December 31, 1995 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Units purchased 34,422.778 15,640.606 29,479.189 52,474.764 51,619.416 50,768.075 4,216.270
Units redeemed (998.492) (324.578) (276.012) (255.422) (889.064) (1,164.691) 0.000
---------- ---------- ---------- ----------- ---------- ---------- ---------
Units outstanding December 31, 1996 33,424.286 15,316.028 29,203.177 52,219.342 50,730.352 49,603.384 4,216.270
========== ========== ========== ========== ========== ========== =========
===================================================================================================================================
=========================================================================================
Merrill Lynch Variable Series Funds, Inc.
------------------------------------------------
Basic Global High Domestic
Value Strategy Current Money
Focus Focus Income Market
Fund Fund Fund Fund
=========================================================================================
Units outstanding, December 31, 1995 0.000 0.000 0.000 0.000
Units purchased 6,930.204 2,124.185 6,860.213 391,560.413
Units redeemed (109.701) (9.478) (22.856) (66,228.593)
--------- --------- --------- -----------
Units outstanding December 31, 1996 6,820.503 2,114.707 6,837.357 325,331.820
========= ========= ========= ===========
=========================================================================================
* Variable Investment Fund
<PAGE>
Enhanced Contracts
===================================================================================================================================
Dreyfus VIF* Dreyfus Funds Janus Aspen Series
------------ ------------------- ---------------------------------------------------
Socially Short-
Capital Responsible Stock Aggressive Worldwide Term
Appreciation Growth Index Growth Growth Balanced Bond
Portfolio Fund, Inc. Fund Portfolio Portfolio Portfolio Portfolio
===================================================================================================================================
Units outstanding, December 31, 1995 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Units purchased 313.603 0.000 600.306 1,910.271 272.267 1,024.467 17.440
Units redeemed 0.000 0.000 0.000 0.000 0.000 0.000 0.000
---------- ---------- ---------- ----------- ---------- --------- ---------
Units outstanding December 31, 1996 313.603 0.000 600.306 1,910.271 272.267 1,024.467 17.440
========== ========== ========== ========== ========== ========== =========
===================================================================================================================================
Enhanced Contracts
=========================================================================================
Merrill Lynch Variable Series Funds, Inc.
------------------------------------------------
Basic Global High Domestic
Value Strategy Current Money
Focus Focus Income Market
Fund Fund Fund Fund
=========================================================================================
Units outstanding, December 31, 1995 0.000 0.000 0.000 0.000
Units purchased 96.296 30.061 255.389 1,260.991
Units redeemed 0.000 0.000 0.000 0.000
--------- --------- --------- -----------
Units outstanding December 31, 1996 96.296 30.061 255.389 1,260.991
========= ========= ========= ===========
=========================================================================================
* Variable Investment Fund
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
(1) GENERAL
-------
Annuity Investors Variable Account A (the "Account") is registered under
the Investment Company Act of 1940, as amended, as a unit investment
trust. The Account was established on May 26, 1995 and commenced
operations on December 7, 1995 as a segregated investment account for
individual and group variable annuity contracts which are registered under
the Securities Act of 1933. The operations of the Account are included in
the operations of Annuity Investors Life Insurance Company (the "Company")
pursuant to the provisions of the Ohio Insurance Code. The Company is an
indirect wholly-owned subsidiary of American Annuity Group, Inc., ("AAG"),
a publicly traded insurance holding company listed on the New York Stock
Exchange. The Company is licensed in 47 states.
At December 31, 1997, the following investment options were available:
THE DREYFUS VARIABLE INVESTMENT FUND:
. Capital Appreciation Portfolio
. Growth and Income Portfolio
. Small Cap Portfolio
DREYFUS FUNDS:
. Socially Responsible Growth Fund, Inc.
. Stock Index Fund
JANUS ASPEN SERIES:
. Aggressive Growth Portfolio
. Worldwide Growth Portfolio
. Balanced Portfolio
MERRILL LYNCH VARIABLE SERIES FUNDS, INC.:
. Domestic Money Market Fund
. Basic Value Focus Fund
. Global Strategy Focus Fund
. High Current Income Fund
MORGAN STANLEY UNIVERSAL FUNDS, INC.:
. Fixed Income Portfolio
. U.S. Real Estate Portfolio
PBHG INSURANCE SERIES FUND, INC.:
. Growth II Portfolio
. Technology & Communications Portfolio
STRONG FUNDS:
. Opportunity Fund II
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
------------------------------------------
Basis Of Presentation
---------------------
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amount reported in the financial statements
and accompanying notes. Changes in circumstances could cause actual
results to differ materially from those estimates.
11
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 1997
Investments
-----------
Investments are valued using the net asset value of the respective
portfolios at the end of each business day of the New York Stock Exchange,
with the exception of business holidays. Investment transactions are
accounted for on the trade date (the date the order to buy or sell is
executed). The cost of investments sold is determined on a first-in,
first-out basis. The Account does not hold any investments which are
restricted as to resale.
Net investment income (loss), net realized gain (loss) and unrealized
appreciation (depreciation) on investments are allocated to the contracts
on each valuation date based on each contract's pro rata share of the
assets of the Account as of the beginning of the valuation date.
Federal Income Taxes
--------------------
No provision for federal income taxes has been made in the accompanying
financial statements because the operations of the Account are included in
the total operations of the Company, which is treated as a life insurance
company for federal income tax purposes under Subchapter L of the Internal
Revenue Code. Net investment income and realized gains (losses) will be
retained in the Account and will not be taxable until received by the
contract owner or beneficiary in the form of annuity payments or other
distributions.
Net Assets Attributable To Variable Annuity Contract Holders
------------------------------------------------------------
The variable annuity contract reserves are comprised of net contract
purchase payments less redemptions and benefits. These reserves are
adjusted daily for the net investment income (loss), net realized gain
(loss) and unrealized appreciation (depreciation) on investments.
(3) Purchases And Sales Of Investments In Portfolio Shares
------------------------------------------------------
The aggregate cost of purchases and proceeds from sales of investments in
all portfolio shares for the years ended December 31, 1997 and 1996 are as
follows:
12
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 1997
1997
------------------------------
Cost of Proceeds from
Purchases Sales
--------- -------------
The Dreyfus Variable Investment Fund:
Capital Appreciation Portfolio $ 3,205,485 35,865
Growth and Income Portfolio 606,028 21,688
Small Cap Portfolio 1,118,851 136
Dreyfus Funds:
Socially Responsible Growth Fund, Inc. 1,799,223 33,431
Stock Index Fund 4,519,615 15,987
Janus Aspen Series:
Aggressive Growth Portfolio 1,811,011 163,917
Worldwide Growth Portfolio 5,714,442 27,266
Balanced Portfolio 4,962,560 82,509
Short-Term Bond Portfolio 51,886 22,434
Merrill Lynch Variable Series Funds, Inc.:
Basic Value Focus Fund 909,483 37,844
Global Strategy Focus Fund 224,738 15,765
High Current Income Fund 752,313 18,387
Domestic Money Market Fund 1,914,332 1,490,464
Morgan Stanley Universal Funds, Inc.:
Fixed Income Portfolio 84,163 5,193
U.S. Real Estate Portfolio 234,705 3,171
PBHG Insurance Series Fund, Inc.:
Growth II Portfolio 181,137 1,063
Technology & Communications Portfolio 562,830 16,221
Strong Funds:
Opportunity Fund II 436,177 6,002
----------- ----------
Total $29,088,979 $1,997,343
=========== ==========
13
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 1997
1996
------------------------------
Cost of Proceeds from
Purchases Sales
--------- -------------
Dreyfus Funds:
Capital Appreciation Portfolio $ 416,285 $ 9,630
Socially Responsible Growth Fund, Inc. 187,037 3,968
Stock Index Fund 359,968 7,377
Janus Aspen Series:
Aggressive Growth Portfolio 600,450 1,531
Worldwide Growth Portfolio 658,159 16,587
Balanced Portfolio 600,469 17,796
Short-Term Bond Portfolio 44,403 53
Merrill Lynch Variable Series Funds, Inc.:
Basic Value Focus Fund 86,446 7,342
Global Strategy Focus Fund 22,875 13
High Current Income Fund 79,869 1,608
Domestic Money Market Fund 420,222 79,168
---------- --------
Total $3,476,183 $145,073
========== ========
14
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 1997
(4) Deductions And Expenses
-----------------------
Although periodic annuitization payments to contract owners vary according
to the investment performance of the sub-accounts, such payments are not
affected by mortality or expense experience because the Company assumes
the mortality risk and expense risk under the contracts.
The mortality risk assumed by the Company results from the life annuity
payment option in the contracts, in which the Company agrees to make
annuity payments regardless of how long a particular annuitant or other
payee lives. The annuity payments are determined in accordance with
annuity purchase rate provisions established at the time the contracts are
issued. Based on the actuarial determination of expected mortality, the
Company is required to fund any deficiency in the annuity payment reserves
from its general account assets.
The expense risk assumed by the Company is the risk that the deductions
for sales and administrative expenses may prove insufficient to cover the
actual sales and administrative expenses. Under the Basic Contract, the
Company deducts a fee from the Account each day for assuming the mortality
and expense risks. This fee is equal on an annual basis to 1.25% of the
daily value of the total investments of the Account. These fees aggregated
$199,272 and $8,622 for the years ended December 31, 1997 and 1996,
respectively.
In connection with certain contracts in which the Company incurs reduced
sales and servicing expenses, such as contracts offered to active
employees of the Company or any of its subsidiaries and/or affiliates, the
Company may offer an Enhanced Contract. Under the Enhanced Contract, the
Company deducts a fee from the Account each day for assuming the mortality
and expense risks. This fee is equal on an annual basis to 0.95% of the
daily value of the total investments of the Account. These fees aggregated
$3,856 and $65 for the years ended December 31, 1997 and 1996,
respectively.
Pursuant to an administrative agreement between AAG and the Company, AAG
subsidiaries provide sales and administrative services to the Company and
the Account. The Company may deduct a percentage of purchase payments
surrendered to cover sales expenses. The percentage decreases to 0% from a
maximum of 7.0% based upon the number of years the purchase payment has
been held.
In addition, the Company may deduct units from contracts annually and upon
full surrender to cover an administrative fee of $25. These expenses
totaled $7,275 and $175 for the years ended December 31, 1997 and 1996,
respectively.
(5) Other Transactions With Affiliates
----------------------------------
AAG Securities, Inc., an affiliate of the Company, is the principal
underwriter and performs all variable annuity sales functions on behalf of
the Company.
15
<PAGE>
ANNUITY INVESTORS VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 1997
(6) Net Assets
----------
Net assets consisted of the following at December 31, 1997 and 1996:
1997 1996
----------- ----------
Proceeds from the sales of units since
organization, less cost of units
redeemed $29,965,042 $3,297,929
Undistributed net investment income 457,774 24,496
Undistributed net realized gains on
sale of investments 56,606 4,654
Net unrealized depreciation of investments 1,938,651 53,343
----------- ----------
Net assets $32,418,073 $3,380,422
=========== ==========
16
<PAGE>
DREYFUS VIF SMALL CAP PORTFOLIO
DREYFUS VIF CAPITAL APPRECIATION PORTFOLIO
DREYFUS VIF GROWTH AND INCOME PORTFOLIO
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
DREYFUS STOCK INDEX FUND
JANUS ASPEN SERIES WORLDWIDE GROWTH PORTFOLIO
JANUS ASPEN SERIES AGGRESSIVE GROWTH PORTFOLIO
JANUS ASPEN SERIES BALANCED PORTFOLIO
MERRILL LYNCH VSF BASIC VALUE FOCUS FUND
MERRILL LYNCH VSF GLOBAL STRATEGY FOCUS FUND
MERRILL LYNCH VSF HIGH CURRENT INCOME FUND
MERRILL LYNCH VSF DOMESTIC MONEY MARKET FUND
MORGAN STANLEY UNIVERSAL FUND INC. - U.S. REAL ESTATE PORTFOLIO
MORGAN STANLEY UNIVERSAL FUND INC. - FIXED INCOME PORTFOLIO
PBHG INSURANCE SERIES FUND, INC. - PBHG TECHNOLOGY & COMMUNICATIONS
PORTFOLIO
PBHG INSURANCE SERIES FUND, INC. - PBHG GROWTH II PORTFOLIO
STRONG OPPORTUNITY FUND II, INC.
<PAGE>
The Financial Statements of the following investment companies ("Registrant")
are made a part hereof and incorporated herein:
Registrant 1940 Act Number
- ---------- ---------------
Janus Aspen Series 811-07736
- --Janus Aspen Aggressive Growth Portfolio
- --Janus Aspen Worldwide Growth Portfolio
- --Janus Aspen Balanced Portfolio
Dreyfus Variable Investment Fund 811-05125
- --Capital Appreciation Portfolio
- --Growth & Income Portfolio
- --Small Cap Portfolio
The Dreyfus Socially Responsible Growth
Fund, Inc. 811-07044
Dreyfus Stock Index Fund 811-05719
Merrill Lynch Variable Series Fund, Inc. 811-03290
- --Basic Value Focus Fund
- --Global Strategy Focus Fund
- --High Current Income Fund
- --Domestic Money Market Fund
Morgan Stanley Universal Funds, Inc. 811-07607
- --U.S. Real Estate Portfolio
- --Fixed Income Portfolio
PBHG Insurance Series Fund, Inc. 811-08009
- --PBHG Growth II Portfolio
- --PBHG Technology & Communications
Portfolio
Strong Special Fund II, Inc. 811-06552
<PAGE>
ANNUITY INVESTORS[REGISTERED] VARIABLE ACCOUNT A
Annuity Investors Life Insurance Company UNDERWRITTEN AND
P.O. Box 5423 DISTRIBUTED BY:
Cincinnati, Ohio 45201-5423
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[REGISTERED] and President
of Great American[REGISTERED] Life Insurance Company
STEPHEN CRAIG LINDNER
President of American Annuity Group[SERVICEMARK]
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 & Assistant Secretary
David H. Shipley Vice President
Lynn E. Laswell Assistant Vice President & Assistant Treasurer
William Jack Maney III Assistant Treasurer
Thomas E. Mischell Assistant Treasurer
<PAGE>
Annuity Investors Life Insurance Company[REGISTERED]
P. O. Box 5423
Cincinnati, Ohio 45201-5423
1-800-789-6771
ANNUITY INVESTORS[REGISTERED]
VARIABLE ACCOUNT A
OF
ANNUITY INVESTORS [SERVICEMARK] LIFE INSURANCE COMPANY
FOR
DECEMBER 31, 1997
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.
