<PAGE>
Annuity Investors(R) Variable Account A
of
Annuity Investors (R) Life Insurance Company
for
The Commodore(R) Variable Annuities
The Commodore The Commodore
Nauticus(R) Americus (R)
June 30, 1999
Semiannual Report to Contract Owners
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Table of Contents
Page
Letter from the President................................................... 2
Portfolio Semiannual Reports
Tab
Bankers Trust Company............................................... I
EAFE(R) Equity Index Fund
Equity 500 Index Fund
Small Cap Index Fund
Merrill Lynch Variable Series Funds, Inc. .......................... II
Basic Value Focus Fund
Domestic Money Market Fund
Global Strategy Focus Fund
High Current Income Fund
Dreyfus Portfolios..................................................III
Dreyfus Variable Investment Fund
Capital Appreciation Portfolio
Growth and Income Portfolio
Small Cap Portfolio
The Dreyfus Socially Responsible Growth Fund, Inc.
Dreyfus Stock Index Fund
Strong Opportunity Fund II, Inc. ................................... IV
PBHG Insurance Series Fund, Inc. ................................... V
PBHG Growth II Portfolio
PBHG Technology & Communications Portfolio
Janus Aspen Series.................................................. VI
Aggressive Growth Portfolio
Capital Appreciation Portfolio
Worldwide Growth Portfolio
Balanced Portfolio
Morgan Stanley Dean Witter Universal Funds, Inc. ...................VII
U.S. Real Estate Portfolio
Fixed Income Portfolio
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Dear Commodore Contract Owner:
I am pleased to present you with the June 30, 1999 Semiannual Reports
for each of the twenty-one Portfolios offered through the sub-accounts of
Annuity Investors(R) Variable Account A. The Portfolios are managed by leading
investment advisors such as Janus Capital Corporation, The Dreyfus Corporation,
Bankers Trust Company, Merrill Lynch Asset Management, L.P., Morgan Stanley Dean
Witter Investment Management Inc., Pilgrim Baxter & Associates, Ltd. and Strong
Capital Management, Inc. The broad range of investment options offered under
your Contract allows you the flexibility to implement your own personal
investment strategy and to change your mix of investments as your objectives
change over time.
In the first half of 1999, the stock market, as measured by the Standard
& Poor's 500 Composite Stock Index, showed a 12.38% increase and the NYSE
Composite Index increased by 8.78%. The bond market, as measured by Lehman
Brothers Aggregate Bond Index, decreased by 1.38% over the same period. The
performance of the sub-accounts offered under your Contract compared favorably
to the performance of these indices, as shown by the average annual total return
for the period January 1, 1999 to June 30, 1999, below.*
Janus A.S.-Aggressive Growth Portfolio 29.93%
Janus A.S.-Worldwide Growth Portfolio 12.06%
Janus A.S.-Capital Appreciation Portfolio 24.91%
Janus A.S.-Balanced Portfolio 11.38%
Dreyfus V.I.F.-Small Cap Portfolio 11.66%
Dreyfus V.I.F.-Capital Appreciation Portfolio 6.85%
Dreyfus V.I.F.-Growth and Income Portfolio 10.40%
The Dreyfus Socially Responsible Growth Fund, Inc. 12.08%
Dreyfus Stock Index Fund 11.45%
BT Insurance Funds Trust-Small Cap Index Fund 7.19%
BT Insurance Funds Trust-EAFE(R)Equity Index Fund 3.48%
BT Insurance Funds Trust-Equity 500 Index Fund 11.25%
Strong Opportunity Fund II, Inc. 18.96%
Merrill Lynch V.S.F.-Basic Value Focus Fund 21.42%
Merrill Lynch V.S.F.-Global Strategy Focus Fund 4.00%
Merrill Lynch V.S.F.-High Current Income Fund 3.07%
Merrill Lynch V.S.F.-Domestic Money Market Fund 1.25%
Morgan Stanley Dean Witter Universal Funds, Inc.-U.S. Real 7.80%
Estate Portfolio
Morgan Stanley Dean Witter Universal Funds, Inc.-Fixed Income -2.56%
Portfolio
PBHG Insurance Series Fund, Inc.-PBHG Technology & 46.48%
Communications Portfolio
PBHG Insurance Series Fund, Inc.-PBHG Growth II Portfolio 24.34%
*Performance figures are net of all sub-account charges, but do
not reflect contingent deferred sales charges and contract
maintenance fees.
I, and my colleagues at Annuity Investors Life Insurance Company(R),
look forward to continuing to serve you in the future.
Sincerely,
/s/--------------
Robert A. Adams
President
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The Financial Statements of the following investment companies ("Registrant")
are made a part hereof and incorporated herein:
REGISTRANT 1940 Act Number
- ---------- ---------------
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
Janus Aspen Series 811-07736
- --Janus Aspen Aggressive Growth Portfolio
- --Capital Appreciation Portfolio
- --Janus Aspen Worldwide Growth Portfolio
- --Janus Aspen Balanced Portfolio
Merrill Lynch Variable Series Fund, Inc. 811-03290
- --Basic Value Focus Fund
- --Domestic Money Market Fund
- --Global Strategy Focus Fund
- --High Current Income Fund
Morgan Stanley Dean Witter Universal Funds, Inc. 811-07607
- --Fixed Income Portfolio
- --U.S. Real Estate Portfolio
Bankers Trust Funds, Inc. 811-07507
- --EAFE(R) Equity Index Fund
- --Equity 500 Index Fund
- --Small Cap Index Fund
Strong Opportunity Fund II, Inc. 811-06552
PBHG Insurance Series Fund, Inc. 811-08009
- --PBHG Growth II Portfolio
- --PBHG Technology & Communications Portfolio
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Annuity Investors Life Insurance Company(R)
P. O. Box 5423
Cincinnati, Ohio 45201-5423
1-800-789-6771
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for
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This report is for the information of the contract owners and participants of
Annuity Investors Life Insurance Company and 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.
