SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.   20549


                                    FORM 10-Q

(Mark  One)
/X/   QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15 (d) OF THE SECURITIES
      EXCHANGE  ACT  OF  1934

                                       OR

/  /  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR 15 (d) OF THE SECURITIES
      EXCHANGE  ACT  OF  1934

                  For the quarterly period ended March 31, 2000


                          Commission File No. 33-47472


                     ANCHOR NATIONAL LIFE INSURANCE COMPANY


      Incorporated  in  Arizona                            86-0198983
                                                          IRS  Employer
                                                        Identification  No.

             1 SunAmerica Center, Los Angeles, California 90067-6022
       Registrant's telephone number, including area code:  (310) 772-6000


     INDICATE  BY  CHECK  MARK  WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS
REQUIRED  TO  BE FILED BY SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
1934  DURING  THE  PRECEDING  12  MONTHS  (OR  FOR  SUCH SHORTER PERIOD THAT THE
REGISTRANT  WAS REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO SUCH
FILING  REQUIREMENTS  FOR  THE  PAST  90  DAYS  Yes  X  No
                                                    --

     THE  NUMBER  OF  SHARES OUTSTANDING OF THE REGISTRANT'S COMMON STOCK ON MAY
11,  2000  WAS  FOLLOWS:

Common  Stock  (par  value  $1,000 per share)           3,511 shares outstanding


<TABLE>
<CAPTION>

                     ANCHOR NATIONAL LIFE INSURANCE COMPANY

                                      INDEX





                                                               Page
                                                             Number(s)
                                                             ---------
<S>                                                          <C>
Part I - Financial Information

     Consolidated Balance Sheet (Unaudited) -
     March 31, 2000 and December 31, 1999 . . . . . . . . .        3-4

     Consolidated Statement of Income and Comprehensive
     Income (Unaudited) - Three Months Ended March 31,
     2000 and 1999. . . . . . . . . . . . . . . . . . . . .          5

     Consolidated Statement of Cash Flows (Unaudited) -
     Three Months Ended March 31, 2000 and 1999 . . . . . .        6-7

     Notes to Consolidated Financial Statements (Unaudited)       8-10

     Management's Discussion and Analysis of Financial
     Condition and Results of Operations. . . . . . . . . .      11-24

     Quantitative and Qualitative Disclosures About
     Market Risk. . . . . . . . . . . . . . . . . . . . . .         25

Part II - Other Information . . . . . . . . . . . . . . . .         26
</TABLE>


<PAGE>
<TABLE>
<CAPTION>

                     ANCHOR NATIONAL LIFE INSURANCE COMPANY
                           CONSOLIDATED BALANCE SHEET
                                   (Unaudited)

                                                March  31,     December  31,
                                                      2000             1999
                                           ---------------  ---------------
<S>                                        <C>              <C>
ASSETS

Investments:
  Cash and short-term investments . . . .  $   617,187,000  $   462,915,000
  Bonds, notes and redeemable
    preferred stocks available for sale,
    at fair value (amortized cost:
    March 2000, $3,866,645,000;
    December 1999, $4,155,728,000). . . .    3,645,252,000    3,953,169,000
  Mortgage loans. . . . . . . . . . . . .      678,908,000      674,679,000
  Policy loans. . . . . . . . . . . . . .      253,706,000      260,066,000
  Separate account seed money . . . . . .      140,846,000      144,231,000
  Partnerships. . . . . . . . . . . . . .        4,010,000        4,009,000
  Real estate . . . . . . . . . . . . . .       24,000,000       24,000,000
  Other invested assets . . . . . . . . .       24,072,000       31,632,000
                                           ---------------  ---------------

  Total investments . . . . . . . . . . .    5,387,981,000    5,554,701,000

Variable annuity assets held in separate
  accounts. . . . . . . . . . . . . . . .   21,744,036,000   19,949,145,000
Accrued investment income . . . . . . . .       57,379,000       60,584,000
Deferred acquisition costs. . . . . . . .    1,132,683,000    1,089,979,000
Receivable from brokers for sales of
  securities                                           ---       54,760,000
Deferred income taxes . . . . . . . . . .       44,305,000       53,445,000
Other assets. . . . . . . . . . . . . . .      110,989,000      111,880,000
                                           ---------------  ---------------

TOTAL ASSETS. . . . . . . . . . . . . . .  $28,477,373,000  $26,874,494,000
                                           ===============  ===============
</TABLE>


                             See accompanying notes

                                        3
<PAGE>
<TABLE>
<CAPTION>

                     ANCHOR NATIONAL LIFE INSURANCE COMPANY
                     CONSOLIDATED BALANCE SHEET (Continued)
                                   (Unaudited)

                                                   March  31,     December  31,
                                                         2000              1999
                                             ----------------  ----------------
<S>                                          <C>               <C>
LIABILITIES AND SHAREHOLDER'S EQUITY

Reserves, payables and accrued liabilities:
  Reserves for fixed annuity contracts. . .  $ 2,909,529,000   $ 3,254,895,000
  Reserves for universal life insurance
    contracts . . . . . . . . . . . . . . .    1,940,158,000     1,978,332,000
  Reserves for guaranteed investment
    contracts . . . . . . . . . . . . . . .      455,667,000       305,570,000
  Payable to brokers for purchases of
    securities. . . . . . . . . . . . . . .        5,139,000           139,000
  Income taxes currently payable. . . . . .       26,316,000        23,490,000
  Modified coinsurance deposit liability. .      135,060,000       140,757,000
  Other liabilities . . . . . . . . . . . .      300,129,000       249,224,000
                                             ----------------  ----------------

  Total reserves, payables and accrued
    liabilities . . . . . . . . . . . . . .    5,771,998,000     5,952,407,000
                                             ----------------  ----------------

Variable annuity liabilities related to
  separate accounts . . . . . . . . . . . .   21,744,036,000    19,949,145,000
                                             ----------------  ----------------

Subordinated notes payable to affiliates. .       53,361,000        37,816,000
                                             ----------------  ----------------

Shareholder's equity:
  Common Stock. . . . . . . . . . . . . . .        3,511,000         3,511,000
  Additional paid-in capital. . . . . . . .      493,010,000       493,010,000
  Retained earnings . . . . . . . . . . . .      535,602,000       551,158,000
  Accumulated other comprehensive loss. . .     (124,145,000)     (112,553,000)
                                             ----------------  ----------------

  Total shareholder's equity. . . . . . . .      907,978,000       935,126,000
                                             ----------------  ----------------

TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY.  $28,477,373,000   $26,874,494,000
                                             ================  ================
</TABLE>


                             See accompanying notes

                                        4
<PAGE>
<TABLE>
<CAPTION>

                     ANCHOR NATIONAL LIFE INSURANCE COMPANY
            CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME
               For the three months ended March 31, 2000 and 1999
                                   (Unaudited)


                                                        2000            1999
                                               -------------  --------------
<S>                                            <C>            <C>
Investment income . . . . . . . . . . . . . .  $107,287,000   $ 130,357,000
                                               -------------  --------------
Interest expense on:
  Fixed annuity contracts . . . . . . . . . .   (37,720,000)    (64,565,000)
  Universal life insurance contracts. . . . .   (23,756,000)    (30,171,000)
  Guaranteed investment contracts . . . . . .    (5,268,000)     (5,158,000)
  Senior indebtedness                                   ---      (1,273,000)
  Subordinated notes payable to affiliates. .      (801,000)     (3,453,000)
                                               -------------  --------------

  Total interest expense. . . . . . . . . . .   (67,545,000)   (104,620,000)
                                               -------------  --------------

NET INVESTMENT INCOME . . . . . . . . . . . .    39,742,000      25,737,000
                                               -------------  --------------

NET REALIZED INVESTMENT GAINS (LOSSES). . . .    (1,769,000)        884,000
                                               -------------  --------------

Fee income:
  Variable annuity fees . . . . . . . . . . .    96,619,000      66,945,000
  Net retained commissions. . . . . . . . . .    13,158,000      12,957,000
  Asset management fees . . . . . . . . . . .    17,068,000       9,279,000
  Universal life insurance fees . . . . . . .     4,503,000       6,377,000
  Surrender charges . . . . . . . . . . . . .     5,025,000       4,379,000
  Other fees. . . . . . . . . . . . . . . . .     3,030,000       3,746,000
                                               -------------  --------------

TOTAL FEE INCOME. . . . . . . . . . . . . . .   139,403,000     103,683,000
                                               -------------  --------------

GENERAL AND ADMINISTRATIVE EXPENSES . . . . .   (41,262,000)    (35,415,000)
                                               -------------  --------------

AMORTIZATION OF DEFERRED ACQUISITION COSTS. .   (37,932,000)    (27,604,000)
                                               -------------  --------------

ANNUAL COMMISSIONS. . . . . . . . . . . . . .   (15,444,000)     (9,088,000)
                                               -------------  --------------

PRETAX INCOME . . . . . . . . . . . . . . . .    82,738,000      58,197,000

Income tax expense. . . . . . . . . . . . . .   (29,294,000)    (21,009,000)
                                               -------------  --------------

NET INCOME. . . . . . . . . . . . . . . . . .    53,444,000      37,188,000
                                               -------------  --------------

OTHER COMPREHENSIVE LOSS, NET OF TAX
  Net unrealized losses on debt and equity
    securities available for sale identified
    in the current period (net of income tax
    benefit of $6,767,000 for 2000 and
    $10,583,000 for 1999) . . . . . . . . . .   (12,568,000)    (19,652,000)
  Less reclassification adjustment for net
    realized losses (gains) included in net
    income (net of income tax expense of
    $525,000 for 2000 and income tax benefit
    of $80,000 for 1999). . . . . . . . . . .       976,000        (148,000)
                                               -------------  --------------

  OTHER COMPREHENSIVE LOSS. . . . . . . . . .   (11,592,000)    (19,800,000)
                                               -------------  --------------

COMPREHENSIVE INCOME. . . . . . . . . . . . .  $ 41,852,000   $  17,388,000
                                               =============  ==============
</TABLE>


                             See accompanying notes

                                        5
<PAGE>
<TABLE>
<CAPTION>

                     ANCHOR NATIONAL LIFE INSURANCE COMPANY
                      CONSOLIDATED STATEMENT OF CASH FLOWS
               For the three months ended March 31, 2000 and 1999
                                   (Unaudited)


                                                     2000              1999
                                            -------------  ----------------
<S>                                         <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . . . .  $ 53,444,000   $    37,188,000
Adjustment to reconcile net income to net
  cash provided by operating activities:
    Interest credited to:
      Fixed annuity contracts. . . . . . .    37,720,000        64,565,000
      Universal life insurance contracts .    23,756,000        30,171,000
      Guaranteed investment contracts. . .     5,268,000         5,158,000
    Net realized investment losses (gains)     1,769,000          (884,000)
    Accretion (amortization) of net
      discounts (premiums) on investments.    (7,925,000)        3,847,000
    Universal life insurance fees. . . . .    (4,503,000)       (6,377,000)
    Amortization of goodwill . . . . . . .       363,000           358,000
    Provision for deferred income taxes. .    15,382,000       (54,403,000)
Change in:
  Accrued investment income. . . . . . . .     3,205,000       (20,074,000)
  Deferred acquisition costs . . . . . . .   (41,704,000)      (54,741,000)
  Other assets . . . . . . . . . . . . . .       528,000        12,511,000
  Income taxes currently payable . . . . .     2,826,000        12,169,000
  Other liabilities. . . . . . . . . . . .    59,243,000        46,622,000
Other, net . . . . . . . . . . . . . . . .    (5,729,000)       (4,869,000)
                                            -------------  ----------------

NET CASH PROVIDED BY OPERATING ACTIVITIES.   143,643,000        71,241,000
                                            -------------  ----------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of:
  Bonds, notes and redeemable preferred
    stocks . . . . . . . . . . . . . . . .   (81,207,000)   (2,862,010,000)
  Mortgage loans . . . . . . . . . . . . .   (10,055,000)     (121,189,000)
  Other investments, excluding short-term
    investments. . . . . . . . . . . . . .   (20,301,000)     (155,761,000)
Sales of:
  Bonds, notes and redeemable preferred
    stocks . . . . . . . . . . . . . . . .   308,909,000     1,080,439,000
  Other investments, excluding short-term
    investments                                      ---         1,519,000
Redemptions and maturities of:
  Bonds, notes and redeemable preferred
    stocks . . . . . . . . . . . . . . . .   119,052,000       125,032,000
  Mortgage loans . . . . . . . . . . . . .     6,241,000         9,767,000
  Other investments, excluding short-term
    investments. . . . . . . . . . . . . .    45,435,000         5,683,000
                                            -------------  ----------------

NET CASH PROVIDED (USED) BY INVESTING
  ACTIVITIES . . . . . . . . . . . . . . .   368,074,000    (1,916,520,000)
                                            -------------  ----------------
</TABLE>


                             See accompanying notes

                                        6
<PAGE>
<TABLE>
<CAPTION>

                     ANCHOR NATIONAL LIFE INSURANCE COMPANY
                CONSOLIDATED STATEMENT OF CASH FLOWS (Continued)
               For the three months ended March 31, 2000 and 1999
                                   (Unaudited)


                                                        2000               1999
                                              --------------   ----------------
<S>                                            <C>             <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Premium receipts on:
  Fixed annuity contracts . . . . . . . . . .  $ 379,940,000   $   397,623,000
  Universal life insurance contracts. . . . .     15,013,000        18,003,000
  Guaranteed investment contracts                150,000,000               ---
Net exchanges from the fixed accounts
  of variable annuity contracts . . . . . . .   (599,675,000)     (414,402,000)
Withdrawal payments on:
  Fixed annuity contracts . . . . . . . . . .   (141,545,000)     (103,126,000)
  Universal life insurance contracts. . . . .    (26,258,000)      (16,351,000)
  Guaranteed investment contracts . . . . . .     (4,009,000)       (5,143,000)
Claims and annuity payments on:
  Fixed annuity contracts . . . . . . . . . .    (18,240,000)      (16,221,000)
  Universal life insurance contracts. . . . .    (45,181,000)      (18,019,000)
Net repayments of other short-term financings     (8,338,000)       (5,590,000)
Net payment related to a modified
  coinsurance transaction                         (5,697,000)              ---
Net receipt from issuances of subordinated
  notes payable to affiliates                     15,545,000               ---
Dividends paid                                   (69,000,000)              ---
                                               --------------  ----------------

NET CASH USED BY FINANCING ACTIVITIES . . . .   (357,445,000)     (163,226,000)
                                               --------------  ----------------

NET INCREASE (DECREASE) IN CASH AND
  SHORT-TERM INVESTMENTS. . . . . . . . . . .    154,272,000    (2,008,505,000)

CASH AND SHORT-TERM INVESTMENTS AT
  BEGINNING OF PERIOD . . . . . . . . . . . .    462,915,000     3,303,454,000
                                               --------------  ----------------

CASH AND SHORT-TERM INVESTMENTS AT
  END OF PERIOD . . . . . . . . . . . . . . .  $ 617,187,000   $ 1,294,949,000
                                               ==============  ================

SUPPLEMENTAL CASH FLOW INFORMATION:

Interest paid on indebtedness . . . . . . . .  $     256,000   $     1,709,000
                                               ==============  ================

Net income taxes paid . . . . . . . . . . . .  $  11,093,000   $    67,099,000
                                               ==============  ================
</TABLE>


                             See accompanying notes

                                        7
<PAGE>
                     ANCHOR NATIONAL LIFE INSURANCE COMPANY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.     BASIS  OF  PRESENTATION
       -----------------------

Anchor  National Life Insurance Company, including its wholly owned subsidiaries
(the "Company") is an indirect wholly owned subsidiary of American International
Group,  Inc.  ("AIG"), an international insurance and financial services holding
company.  The  Company  is engaged in the business of writing fixed and variable
annuities  directed  to  the market for tax-deferred, long-term savings products
and  guaranteed  interest  contracts  ("GICs")  directed  to  the  institutional
marketplace.  Its  subsidiaries  are  engaged  in  the  broker-dealer  and asset
management  businesses.

In the opinion of the Company, the accompanying unaudited consolidated financial
statements  contain  all  adjustments  necessary to present fairly the Company's
consolidated  financial position as of March 31, 2000 and December 31, 1999, the
results  of  its consolidated operations and its consolidated cash flows for the
three  months  ended March 31, 2000 and 1999.  The results of operations for the
three  months ended March 31, 2000 are not necessarily indicative of the results
to  be  expected  for  the  full  year.  The accompanying unaudited consolidated
financial statements should be read in conjunction with the audited consolidated
financial  statements  for  the  year  ended December 31, 1999, contained in the
Company's  1999 Annual Report on Form 10-K. Certain items have been reclassified
to  conform  to  the  current  period's  presentation.


                                        8

<PAGE>
2.     SEGMENT  INFORMATION
       --------------------

     Following  is  selected  information  pertaining  to the Company's business
segments.
<TABLE>
<CAPTION>

                                            Asset         Broker-
                             Annuity      Management      Dealer
                            Operations    Operations    Operations         Total
                          -------------   -----------   -----------   ----------

THREE  MONTHS  ENDED  MARCH  31,
2000:
<S>                      <C>            <C>            <C>           <C>
  Revenue from external
    customers . . . . .   190,755,000     21,263,000    10,066,000    222,084,000
  Intersegment revenue            ---     20,168,000     2,669,000     22,837,000
                         -------------  -------------  ------------  -------------

  Total revenue . . . .   190,755,000     41,431,000    12,735,000    244,921,000
                         =============  =============  ============  =============


  Pretax income . . . .    51,833,000     25,773,000     5,132,000     82,738,000

  Income tax expense. .   (15,958,000)   (10,872,000)   (2,464,000)   (29,294,000)
                         -------------  -------------  ------------  -------------

  Net income. . . . . .  $ 35,875,000   $ 14,901,000   $ 2,668,000   $ 53,444,000
                         =============  =============  ============  =============
</TABLE>


<TABLE>
<CAPTION>

THREE  MONTHS  ENDED  MARCH  31,
1999:
<S>                      <C>            <C>           <C>           <C>
  Revenue from external
    customers . . . . .   197,195,000    11,480,000    10,814,000    219,489,000
  Intersegment revenue            ---    13,646,000     1,789,000     15,435,000
                         -------------  ------------  ------------  -------------

  Total revenue . . . .   197,195,000    25,126,000    12,603,000    234,924,000
                         =============  ============  ============  =============


  Pretax income . . . .    38,240,000    14,428,000     5,529,000     58,197,000

  Income tax expense. .   (12,017,000)   (6,342,000)   (2,650,000)   (21,009,000)
                         -------------  ------------  ------------  -------------

  Net income. . . . . .  $ 26,223,000   $ 8,086,000   $ 2,879,000   $ 37,188,000
                         =============  ============  ============  =============
</TABLE>


                                        9
<PAGE>
3.     CONTINGENT  LIABILITIES
       -----------------------

     The  Company  has  entered  into  four  agreements in which it has provided
liquidity  support  for  certain  short-term  securities  of  municipalities and
non-profit  organizations  by  agreeing to purchase such securities in the event
there  is  no  other  buyer in the short-term marketplace. In return the Company
receives  a fee.  The maximum liability under these guarantees at March 31, 2000
is  approximately  $210,100,000.  Management  does  not  anticipate any material
future  losses  with  respect  to  these  liquidity  support  facilities.

4.     RECENTLY  ISSUED  ACCOUNTING  STANDARD
       --------------------------------------

     In  June  1998, the FASB issued Statement of Financial Accounting Standards
No.  133,  "Accounting for Derivative Instruments and Hedging Activities" ("SFAS
133").  SFAS  133 addresses the accounting for derivative instruments, including
certain  derivative  instruments  embedded  in  other  contracts,  and  hedging
activities.  SFAS  133  was postponed by SFAS 137, and now will be effective for
the  Company  as  of  January  1,  2001.  Therefore,  it  is not included in the
accompanying  financial  statements.  The Company has not completed its analysis
of  the  effect  of  SFAS  133,  but management believes that it will not have a
material  impact  on the Company's results of operations, financial condition or
liquidity.


                                       10
<PAGE>
                     ANCHOR NATIONAL LIFE INSURANCE COMPANY
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

     Management's  discussion and analysis of financial condition and results of
operations  of  Anchor  National  Life  Insurance  Company  and its wholly owned
subsidiaries  (the "Company") for the three months ended March 31, 2000 ("2000")
and  1999  ("1999")  follows.

     In  connection  with the "safe harbor" provisions of the Private Securities
Litigation  Reform  Act  of 1995, the Company cautions readers regarding certain
forward-looking statements contained in this report and in other statements made
by,  or  on  behalf  of,  the Company, whether or not in future filings with the
Securities  and  Exchange Commission (the "SEC"). Forward-looking statements are
statements  not  based  on  historical  information  and  which relate to future
operations,  strategies,  financial  results, or other developments.  Statements
using verbs such as "expect," "anticipate," "believe" or words of similar import
generally  involve  forward-looking statements.  Without limiting the foregoing,
forward-looking  statements  include  statements  which  represent the Company's
beliefs  concerning  future  levels  of  sales  and redemptions of the Company's
products, investment spreads and yields, or the earnings or profitability of the
Company's  activities.

     Forward-looking  statements  are  necessarily  based  on  estimates  and
assumptions  that  are  inherently subject to significant business, economic and
competitive  uncertainties  and  contingencies,  many  of  which  are beyond the
Company's  control and many of which are subject to change.  These uncertainties
and  contingencies  could  cause  actual results to differ materially from those
expressed  in  any  forward-looking  statements  made  by,  or on behalf of, the
Company.  Whether  or  not actual results differ materially from forward-looking
statements  may  depend  on numerous foreseeable and unforeseeable developments.
Some  may  be national in scope, such as general economic conditions, changes in
tax  law  and  changes  in interest rates.  Some may be related to the insurance
industry  generally,  such  as  pricing competition, regulatory developments and
industry  consolidation.  Others may relate to the Company specifically, such as
credit,  volatility  and  other  risks  associated with the Company's investment
portfolio.  Investors  are  also  directed  to  consider  other  risks  and
uncertainties  discussed  in  documents  filed by the Company with the SEC.  The
Company  disclaims  any  obligation  to  update  forward-looking  information.

RESULTS  OF  OPERATIONS

     NET  INCOME  totaled  $53.4 million in 2000, compared with $37.2 million in
1999.  On  December  31, 1998, the Company acquired the individual life business
and  the individual and group annuity business of MBL Life Assurance Corporation
("the  Acquisition").  The  results  of operations for 2000 and 1999 include the
impact  of  the  Acquisition.

     PRETAX INCOME totaled $82.7 million in 2000, compared with $58.2 million in
1999.  The 42.2% improvement in 2000 over 1999 primarily resulted from increased
fee income and net investment income, partially offset by increased amortization
of  deferred  acquisition  costs  ("DAC")  and  increased  annual  commissions.

                                       11
<PAGE>
     NET  INVESTMENT  INCOME,  which  is the spread between the income earned on
invested  assets  and  the  interest  paid  on  fixed  annuities  and  other
interest-bearing liabilities, totaled $39.7 million in 2000 and $25.7 million in
1999.  These amounts equal 2.84% on average invested assets (computed on a daily
basis)  of  $5.60  billion in 2000 and 1.24% on average invested assets of $8.31
billion  in  1999.  Net investment income has increased primarily because of the
redeployment  of  the  assets  received  in the Acquisition into higher yielding
investment  categories.

     Net investment spreads include the effect of interest paid or income earned
on  the  difference between average invested assets and average interest-bearing
liabilities.  Average  invested  assets  exceeded  average  interest-bearing
liabilities  by $254.3 million in 2000, compared with a $79.4 million deficit of
average  interest-bearing liabilities over average invested assets in 1999.  The
difference  between  the Company's yield on average invested assets and the rate
paid on average interest-bearing liabilities (the "Spread Difference") was 2.61%
in  2000  and  1.28%  in  1999.

     Investment  income  (and  the  related  yields  on average invested assets)
totaled  $107.3  million (7.67%) in 2000 and $130.4 million (6.27%) in 1999. The
decrease  in  investment income in 2000 compared to 1999 resulted primarily from
the surrender or rollover into a variable product of most of the fixed annuities
received in the Acquisition.  The increase in the yield in 2000 compared to 1999
is  due  to  primarily  to  the  redeployment  of  the  assets  received  in the
Acquisition  into  higher  yielding  investment  categories.

     Partnership income decreased to $1.9 million (a yield of 142.83% on related
average assets of $5.4 million) in 2000, from $3.2 million (a yield of 50.62% on
related  average  assets of $25.4 million) in 1999.  Partnership income is based
upon  cash  distributions  received from limited partnerships, the operations of
which  the  Company  does  not  influence.  Consequently,  such  income  is  not
predictable  and  there  can  be  no  assurance  that  the  Company will realize
comparable  levels  of  such  income  in  the  future.

     Total  interest expense equaled $67.5 million in 2000, compared with $104.6
million  in 1999.  The average rate paid on all interest-bearing liabilities was
5.06%  in  2000,  compared  with  4.99%  in  1999.  Interest-bearing liabilities
averaged  $5.34 billion during 2000 and $8.39 billion during 1999.  The decrease
in  interest  expense  and  interest-bearing  liabilities  in  2000  reflect the
decrease  in  fixed  annuity  liabilities  related  to  the  Acquisition.

     DECLINE  IN  AVERAGE  INVESTED ASSETS reflects primarily the surrenders and
rollovers  to  variable products of the fixed annuity liabilities related to the
Acquisition.  Changes  in  average  invested  assets also reflect sales of fixed
annuities  and  the  fixed  account  options  of  the Company's variable annuity
products  ("Fixed Annuity Premiums"), and renewal premiums on its universal life
product  ("UL  Premiums")  acquired  in the Acquisition, partially offset by net
exchanges  from  fixed  accounts  into the separate accounts of variable annuity
contracts.  Since  March  31,  1999, Fixed Annuity Premiums and UL Premiums have
aggregated $2.08 billion.  Fixed Annuity Premiums and UL Premiums totaled $395.0
million  in  2000  and  $415.6  million in 1999 and are largely premiums for the
fixed accounts of variable annuities.   On  an  annualized basis, these premiums
represent  30%  and  21%,

                                       12
<PAGE>
respectively, of the related reserve balances at the beginning of 2000 and 1999.

     Guaranteed  investment  contract ("GIC") premiums totaled $150.0 million in
2000.  There  were  no  GIC  premiums  in  1999.  GIC  surrenders and maturities
totaled  $4.0  million  in  2000 and $5.1 million in 1999.  The Company does not
actively  market  GICs;  consequently,  premiums  and  surrenders  may  vary
substantially  from  period to period.  The GICs issued by the Company generally
guarantee the payment of principal and interest at fixed or variable rates for a
term  of  three  to  five  years.  GICs  that  are  purchased by banks for their
long-term  portfolios  or  state and local governmental entities either prohibit
withdrawals  or  permit scheduled book value withdrawals subject to the terms of
the  underlying indenture or agreement. GICs purchased by asset management firms
for  their  short-term  portfolios  either  prohibit  withdrawals  or  permit
withdrawals  with  notice  ranging  from  90  to 270 days.  In pricing GICs, the
Company  analyzes  cash  flow  information  and prices accordingly so that it is
compensated  for  possible  withdrawals  prior  to  maturity.

     NET  REALIZED  INVESTMENT  LOSSES totaled $1.8 million in 2000, compared to
net  realized investment gains of $0.9 million in 1999.  Net realized investment
losses  in  2000 include impairment writedowns of $2.6 million in 2000, compared
with  $0.6  million  in  1999.  Thus,  net  gains  from sales and redemptions of
investments  totaled  $0.8  million in 2000, compared with $1.5 million in 1999.

     The  Company sold or redeemed invested assets, principally bonds and notes,
aggregating  $409.0  million  in  2000  and  $1.21  billion  in  1999.  Sales of
investments  result  from  the  active  management  of  the Company's investment
portfolio,  including  assets  received  as  part  of  the Acquisition.  Because
redemptions  of  investments  are generally involuntary and sales of investments
are  made  in  both rising and falling interest rate environments, net gains and
losses  from  sales  and  redemptions  of  investments  fluctuate from period to
period,  and  represent  0.06%  and 0.07% of average invested assets in 2000 and
1999, respectively.  Active portfolio management involves the ongoing evaluation
of  asset sectors, individual securities within the investment portfolio and the
reallocation  of  investments  from  sectors that are perceived to be relatively
overvalued  to  sectors  that  are  perceived to be relatively undervalued.  The
intent of the Company's active portfolio management is to maximize total returns
on  the  investment portfolio, taking into account credit, option, liquidity and
interest-rate  risk.

     Impairment writedowns include provisions applied to bonds in 2000 and 1999.
On  an  annualized  basis,  impairment  writedowns represent 0.05%, and 0.03% of
average invested assets in 2000 and 1999, respectively.  For the twenty quarters
beginning  April  1,  1995,  impairment  writedowns  as  a percentage of average
invested  assets  have  ranged  up  to  3.06%  and  have  averaged  0.47%.  Such
writedowns  are  based  upon  estimates  of  the  net  realizable  value  of the
applicable  assets.  Actual  realization  will  be dependent upon future events.

     VARIABLE  ANNUITY  FEES are based on the market value of assets in separate
accounts supporting variable annuity contracts.  Such fees totaled $96.6 million
in  2000  and $66.9 million in 1999.  The increased fees in 2000 reflect  growth
in  average  variable  annuity  assets,  principally  due  to

                                       13
<PAGE>
increased  market  values,  the  receipt  of  variable  annuity premiums and net
exchanges into the separate accounts from the fixed accounts of variable annuity
contracts,  partially  offset  by  surrenders.  On an annualized basis, variable
annuity fees represent 1.9% of average variable annuity assets in 2000 and 1999.
Variable  annuity  assets averaged $20.43 billion during 2000 and $14.32 billion
during 1999.  Variable annuity premiums, which exclude premiums allocated to the
fixed accounts of variable annuity products, have aggregated $1.69 billion since
March  31,  1999.  Variable  annuity  premiums totaled $474.4 million and $484.5
million  in  2000  and 1999, respectively. On an annualized basis, these amounts
represent  10%,  and  14%,  respectively,  of  variable  annuity reserves at the
beginning  of  the  respective  periods.

     Sales of variable annuity products (which include premiums allocated to the
fixed  accounts)  ("Variable  Annuity Product Sales") amounted to $857.8 million
and  $881.3  million  in  2000 and 1999, respectively.  Variable Annuity Product
Sales  primarily  reflect sales of the Company's flagship variable annuity line,
Polaris.  Polaris  is  a  multimanager  variable annuity that offers investors a
choice  of  more  than  25  variable funds and a number of guaranteed fixed-rate
funds.

     The  Company  has encountered increased competition in the variable annuity
marketplace  during  recent  years  and  anticipates that the market will remain
highly competitive for the foreseeable future.  Also, from time to time, Federal
initiatives  are  proposed  that could affect the taxation of variable annuities
and  annuities  generally  (See  "Regulation").

     NET  RETAINED  COMMISSIONS  are  primarily  derived from commissions on the
sales  of  nonproprietary  investment  products  by  the Company's broker-dealer
subsidiary,  after deducting the substantial portion of such commissions that is
passed on to registered representatives.  Net retained commissions totaled $13.2
million in 2000 and $13.0 million in 1999.  Broker-dealer sales (mainly sales of
general  securities,  mutual  funds and annuities) totaled $2.88 billion in 2000
and  $3.48 billion in 1999.  The increase in net retained commissions concurrent
with  the  decrease  in  sales  principally  reflect  changes  in  sales  mix.

     ASSET  MANAGEMENT  FEES,  which  include investment advisory fees and 12b-1
distribution  fees,  are  based  on the market value of assets managed in mutual
funds  by  SunAmerica Asset Management Corp.  Such fees totaled $17.1 million on
average  assets  managed  of  $6.03  billion in 2000 and $9.3 million on average
assets  managed  of  $3.67  billion  in  1999.  Asset  management  fees  are not
necessarily  proportionate to average assets managed, principally due to changes
in  product  mix.  Sales  of  mutual  funds,  excluding  sales  of  money market
accounts, have aggregated $2.02 billion since March 31, 1999.  Mutual fund sales
totaled  $836.9  million  in  2000  and $295.7 million in 1999.  The increase in
sales  principally  resulted from increased sales of the Company's "Style Select
Series"  product.  The "Style Select Series" is a group of mutual funds that are
each managed by three industry-recognized fund managers.  In 1999, the number of
portfolios  in  the  "Style Select Series" increased by one "Focus Portfolio" to
ten.  The  Focus  Portfolios  utilize  three leading independent money managers,
each of whom manages one-third of the portfolio by choosing ten favorite stocks.
Sales  of  the  "Style  Select  Series" products totaled $629.8 million in 2000,
compared  with  $166.6  million in 1999.  Redemptions of mutual funds, excluding
redemptions  of  money  market  accounts, amounted to $220.1 million in 2000 and
$140.7  million

                                       14
<PAGE>
in  1999, which, annualized, represent 17.1% and 19.2%, respectively, of average
related  mutual  fund  assets.

     UNIVERSAL  LIFE  INSURANCE  FEES  result  from the universal life insurance
contract reserves acquired in the Acquisition and the ongoing receipt of renewal
premiums on such contracts, and comprise mortality charges, up-front fees earned
on  premiums  received  and  administrative  fees,  net  of the excess mortality
expense  on  these  contracts.  Universal  life  insurance fees amounted to $4.5
million  in 2000 and $6.4 million in 1999.  Such fees annualized represent 0.94%
and  1.09%  of  average reserves for universal life insurance contracts for 2000
and 1999, respectively.  The decrease in fees in 2000 results from surrenders of
universal  life  insurance  contracts  received  in  the  Acquisition and from a
decrease  in  the  cost  of  insurance  charges  as  of  June  30,  1999.

     SURRENDER  CHARGES  on  fixed  and variable annuity contracts and universal
life contracts totaled $5.0 million in 2000 and $4.4 million in 1999.  Surrender
charges  generally  are  assessed  on  withdrawals at declining rates during the
first  seven years of a contract.  Withdrawal payments, which include surrenders
and  lump-sum  annuity  benefits,  totaled $657.5 million in 2000, compared with
$417.4  million  in  1999.  Annualized, these payments represent 10.5% and 7.7%,
respectively, of average fixed and variable annuity and universal life reserves.
Withdrawals  include  variable  annuity  withdrawals  from the separate accounts
totaling  $495.0 million in 2000 (9.7% of average variable annuity reserves) and
$298.2  million (8.4% of average variable annuity reserves) in 1999.  Management
anticipates  that  withdrawal  rates will gradually increase for the foreseeable
future.

     GENERAL AND ADMINISTRATIVE EXPENSES totaled $41.3 million in 2000, compared
with $35.4 million in 1999.  The increases in 2000 over 1999 principally reflect
the  increased  costs  related  to  the business acquired in the Acquisition and
expenses  related  to servicing the Company's growing blocks of variable annuity
policies  and  mutual funds.  General and administrative expenses remain closely
controlled  through  a  company-wide  cost  containment  program and continue to
represent  less  than  1%  of  average  total  assets.

     AMORTIZATION  OF  DEFERRED ACQUISITION COSTS totaled $37.9 million in 2000,
compared with $27.6 million in 1999.  The increase in amortization was primarily
due  to  additional  fixed  and  variable  annuity and mutual fund sales and the
subsequent amortization of related deferred commissions and other direct selling
costs.

     ANNUAL  COMMISSIONS represent renewal commissions paid quarterly in arrears
to  maintain  the  persistency  of  certain  of  the  Company's variable annuity
contracts.  Substantially  all  of  the  Company's  currently available variable
annuity  products  allow for an annual commission payment option in return for a
lower  immediate  commission.  Annual commissions totaled $15.4 million in 2000,
compared with $9.1 million in 1999.  The increase in annual commissions reflects
increased  sales  of  annuities  that  offer  this commission option and gradual
expiration of the initial fifteen-month periods before such payments begin.  The
Company estimates that approximately 58% of the average balances of its variable
annuity  products  is  currently  subject  to such annual commissions.  Based on
current  sales,  this  percentage  is  expected  to  increase in future periods.

                                       15
<PAGE>
     INCOME  TAX  EXPENSE  totaled  $29.3  million  in 2000, compared with $21.0
million  in  1999,  representing  effective annualized tax rates of 35% and 36%,
respectively.

FINANCIAL  CONDITION  AND  LIQUIDITY

     SHAREHOLDER'S  EQUITY  decreased  to  $908.0 million at March 31, 2000 from
$935.1 million at December 31, 1999, due to dividends of $69 million paid to the
Parent  and  an  $11.6 million increase in accumulated other comprehensive loss,
partially  offset  by  $53.4  million  of  net  income  recorded  in  2000.

     INVESTED  ASSETS  at  March  31,  2000 totaled $5.39 billion, compared with
$5.55  billion  at  December 31, 1999.  The Company manages most of its invested
assets  internally.  The  Company's  general  investment  philosophy  is to hold
fixed-rate  assets  for  long-term investment.  Thus, it does not have a trading
portfolio.  However,  the  Company  has  determined that all of its portfolio of
bonds, notes and redeemable preferred stocks (the "Bond Portfolio") is available
to  be sold in response to changes in market interest rates, changes in relative
value  of  asset  sectors and individual securities, changes in prepayment risk,
changes in the credit quality outlook for certain securities, the Company's need
for  liquidity  and  other  similar  factors.

     THE BOND PORTFOLIO, which constituted 68% of the Company's total investment
portfolio,  had  an  amortized  cost  that  was  $221.4 million greater than its
aggregate  fair  value  at  March  31,  2000 and $202.6 million greater than its
aggregate  fair  value  at  December 31, 1999.  The net unrealized losses on the
Bond  Portfolio  in  2000 principally reflect the recent increases in prevailing
interest  rates  and  the  corresponding  effect  on  the fair value of the Bond
Portfolio  at  March  31,  2000.

     At March 31, 2000, the Bond Portfolio (excluding $4.4 million of redeemable
preferred  stocks)  included  $3.55  billion of bonds rated by Standard & Poor's
Corporation ("S&P"), Moody's Investors Service ("Moody's"), Duff & Phelps Credit
Rating  Co.  ("DCR"),  Fitch  Investors  Service, L.P. ("Fitch") or the National
Association  of  Insurance  Commissioners  ("NAIC"),  and $88.3 million of bonds
rated by the Company pursuant to statutory ratings guidelines established by the
NAIC.  At  March 31, 2000, approximately $3.29 billion of the Bond Portfolio was
investment  grade,  including $1.42 billion of U.S. government/agency securities
and  mortgage-backed  securities  ("MBSs").

     At March 31, 2000, the Bond Portfolio included $353.7 million of bonds that
were  not investment grade.  These non-investment-grade bonds accounted for 1.2%
of  the  Company's  total  assets  and  6.6%  of  its  invested  assets.

     Non-investment-grade securities generally provide higher yields and involve
greater  risks  than investment-grade securities because their issuers typically
are  more  highly  leveraged  and more vulnerable to adverse economic conditions
than  investment-grade  issuers.  In  addition,  the  trading  market  for these
securities  is  usually  more limited than for investment-grade securities.  The
Company had no material issuer concentrations of non-investment-grade securities
at  March  31,  2000.

     The  table  on  the  following page summarizes the Company's rated bonds by
rating  classifications  as  of  March  31,  2000.

                                       16
<PAGE>

<TABLE>
<CAPTION>

                                        RATED BONDS BY RATING CLASSIFICATION
                                               (Dollars in thousands)

                                          Issues  not  rated  by  S&P/Moody's
   Issues  Rated  by  S&P/Moody's/DCR/Fitch    DCR/Fitch,  by  NAIC  Category                                 Total
-------------------------------------------    -------------------------------   ----------------------------------
S&P/(Moody's)                     Estimated        NAIC              Estimated               Estimated   Percent of
[DCR] {Fitch}         Amortized        fair    category  Amortized        fair   Amortized        fair     invested
 category (1)              cost       value         (2)       cost       value        cost       value       assets
-------------------  ----------  ----------  ---------  ----------  ----------  ----------  ----------  -----------
<S>                  <C>         <C>         <C>        <C>         <C>         <C>         <C>         <C>
AAA+ to A-
  (A11 to A3)
  [AAA to A-]
  {AAA to A-} . . .  $2,590,790  $2,453,342         1   $  224,531  $  219,679  $2,815,321  $2,673,021       49.70%

BBB+ to BBB-
  (Baa1 to Baa3)
  [BBB+ to BBB-]
  {BBB+ to BBB-}. .     453,852     429,180         2      190,893     184,945     644,745     614,125       11.42

BB+ to BB-
  (Ba1 to Ba3)
  [BB+ to BB-]
  {BB+ to BB-}. . .      74,741      66,869         3            0           0      74,741      66,869        1.24

B+ to B-
  (B1 to B3)
  [B+ to B-]
  {B+ to B-}. . . .     281,309     252,614         4       16,964      15,770     298,273     268,384        4.99

CCC+ to C
  (Caa to C)
  [CCC]
  {CCC+ to C-}. . .      18,314       8,538         5       10,731       8,830      29,045      17,368        0.32

CI to D
  [DD]
  {D} . . . . . . .           0           0         6          144       1,110         144       1,110        0.02
                     ----------  ----------             ----------  ----------  ----------  ----------

TOTAL RATED ISSUES.  $3,419,006  $3,210,543             $  443,263  $  430,334  $3,862,269  $3,640,877
                     ==========  ==========             ==========  ==========  ==========  ==========
<FN>

Footnotes  appear  on  the  following  page.
</TABLE>


                                       17
<PAGE>

     Footnotes  to  the  table  of  Rated  Bonds  by  Rating  Classification
     -----------------------------------------------------------------------

(1)     S&P and Fitch rate debt securities in rating categories ranging from AAA
(the  highest) to D (in payment default).  A plus (+) or minus (-) indicates the
debt's  relative  standing within the rating category.  A security rated BBB- or
higher  is considered investment grade.  Moody's rates debt securities in rating
categories ranging from Aaa (the highest) to C (extremely poor prospects of ever
attaining  any  real  investment  standing).  The  number  1, 2 or 3 (with 1 the
highest  and  3  the  lowest)  indicates the debt's relative standing within the
rating  category.  A  security  rated  Baa3  or  higher is considered investment
grade.  DCR  rates  debt  securities  in rating categories ranging from AAA (the
highest)  to  DD  (in  payment  default).  A plus (+) or minus (-) indicates the
debt's  relative  standing within the rating category.  A security rated BBB- or
higher  is  considered  investment  grade.  Issues  are categorized based on the
highest  of  the  S&P,  Moody's,  DCR  and  Fitch  ratings  if rated by multiple
agencies.

(2)     Bonds and short-term promissory instruments are divided into six quality
categories  for  NAIC rating purposes, rating from 1 (highest) to 5 (lowest) for
nondefaulted  bonds  plus  one category, 6, for bonds in or near default.  These
six  categories  correspond  with the S&P/Moody's/DCR/Fitch rating groups listed
above, with categories 1 and 2 considered investment grade.  The NAIC categories
include  $88.3  million  of  assets  that  were rated by the Company pursuant to
applicable  NAIC  rating  guidelines.


                                       18
<PAGE>
     Senior  secured  loans ("Secured Loans") are included in the Bond Portfolio
and  aggregated  $340.7  million at March 31, 2000.  Secured Loans are senior to
subordinated  debt and equity and are secured by assets of the issuer.  At March
31, 2000, Secured Loans consisted of $57.0 million of publicly traded securities
and  $283.7  million  of  privately  traded securities.  These Secured Loans are
composed  of  loans  to  61  borrowers spanning 15 industries, with 10% of these
assets  concentrated in utilities and 9% concentrated in financial institutions.
No  other  industry  concentration  constituted  more  than  8% of these assets.

     While  the  trading market for the Company's privately traded Secured Loans
is  more  limited  than  for  publicly  traded  issues, management believes that
participation  in  these  transactions  has  enabled  the Company to improve its
investment yield.  As a result of restrictive financial covenants, these Secured
Loans  involve  greater  risk  of  technical  default  than  do  publicly traded
investment-grade securities.  However, management believes that the risk of loss
upon  default  for  these Secured Loans is mitigated by such financial covenants
and  the  collateral  values underlying the Secured Loans. The Company's Secured
Loans  are  rated  by  S&P,  Moody's,  DCR,  Fitch,  the NAIC or by the Company,
pursuant  to  comparable  statutory  rating  guidelines established by the NAIC.

     MORTGAGE LOANS aggregated $678.9 million at March 31, 2000 and consisted of
132  commercial  first  mortgage  loans  with  an  average  loan  balance  of
approximately  $5.1  million, collateralized by properties located in 29 states.
Approximately 36% of this portfolio was office, 17% was multifamily residential,
11%  was  hotels, 10% was manufactured housing, 9% was industrial, 5% was retail
and  12% was other types.  At March 31, 2000, 36% and 11% of this portfolio were
secured  by  properties located in California and New York, respectively, and no
more  than  8%  of this portfolio was secured by properties located in any other
single  state.  At March 31, 2000, there were 16 mortgage loans with outstanding
balances of $10 million or more, which collectively aggregated approximately 43%
of  this  portfolio.  At  March 31, 2000, approximately 30% of the mortgage loan
portfolio  consisted  of  loans  with balloon payments due before April 1, 2003.
During  2000  and  1999, loans delinquent by more than 90 days, foreclosed loans
and  restructured  loans  have  not  been  significant  in relation to the total
mortgage  loan  portfolio.

     At  March  31,  2000, approximately 12% of the mortgage loans were seasoned
loans  underwritten to the Company's standards and purchased at or near par from
other financial institutions.  Such loans generally have higher average interest
rates  than  loans  that  could be originated today. The balance of the mortgage
loan  portfolio  has  been  originated  by the Company under strict underwriting
standards.  Commercial  mortgage loans on properties such as offices, hotels and
shopping  centers  generally  represent  a higher level of risk than do mortgage
loans  secured  by  multifamily residences.  This greater risk is due to several
factors,  including the larger size of such loans and the more immediate effects
of general economic conditions on these commercial property types.  However, due
to  the strict underwriting standards utilized, the Company believes that it has
prudently  managed  by  risk  attributable  to its mortgage loan portfolio while
maintaining  attractive  yields.


                                       19
<PAGE>
     PARTNERSHIP  INVESTMENTS  totaled  $4.0  million  at  March  31,  2000,
constituting  investments  in  6  separate  partnerships with an average size of
approximately $0.7 million.  These partnerships are accounted for by cost method
of  accounting  and  are  managed by independent money managers that invest in a
broad  selection  of  equity  and fixed-income securities, currently including 8
separate  issuers.  The  risks  generally  associated  with partnerships include
those  related to their underlying investments (i.e., equity securities and debt
securities),  plus  a level of illiquidity, which is mitigated to some extent by
the  existence  of  contractual  termination  provisions.

     SEPARATE  ACCOUNT  SEED  MONEY  totaled  $140.8  million at March 31, 2000,
compared  to  $144.2  million at December 31, 1999, which consists of seed money
for  mutual funds used as investment vehicles for the Company's variable annuity
separate  accounts  and  for  SunAmerica  Asset  Management's  mutual  funds.

     OTHER  INVESTED ASSETS aggregated $24.1 million at March 31, 2000, compared
with  $31.6  million  at  December  31, 1999, and consist of collateralized bond
obligations  and  mutual  fund  investments.

     ASSET-LIABILITY  MATCHING  is utilized by the Company to minimize the risks
of  interest rate fluctuations and disintermediation.  The Company believes that
its  fixed-rate liabilities should be backed by a portfolio principally composed
of  fixed-rate  investments  that  generate  predictable  rates  of return.  The
Company  does  not have a specific target rate of return.  Instead, its rates of
return  vary  over  time depending on the current interest rate environment, the
slope  of the yield curve, the spread at which fixed-rate investments are priced
over  the  yield  curve,  default  rates  and  general economic conditions.  Its
portfolio  strategy is constructed with a view to achieve adequate risk-adjusted
returns  consistent  with its investment objectives of effective asset-liability
matching,  liquidity  and safety.  The Company's fixed-rate products incorporate
surrender  charges  or  other  restrictions  in  order to encourage persistency.
Approximately  47%  of  the  Company's  fixed  annuity,  universal  life and GIC
reserves  had  surrender  penalties  or  other  restrictions  at March 31, 2000.

     As  part  of  its asset-liability matching discipline, the Company conducts
detailed  computer  simulations that model its fixed-rate assets and liabilities
under  commonly  used  stress-test interest rate scenarios.  With the results of
these  computer  simulations, the Company can measure the potential gain or loss
in fair value of its interest-rate sensitive instruments and seek to protect its
economic  value  and  achieve  a predictable spread between what it earns on its
invested  assets and what it pays on its liabilities by designing its fixed-rate
products  and conducting its investment operations to closely match the duration
of  the  fixed-rate assets to that of its fixed-rate liabilities.  The Company's
fixed-rate  assets  include:  cash  and short-term investments; bonds, notes and
redeemable  preferred  stocks;  mortgage  loans;  and  investments  in  limited
partnerships  that  invest  primarily in fixed-rate securities and are accounted
for  by using the cost method.  At March 31, 2000, these assets had an aggregate
fair  value  of  $4.88 billion with a duration of 3.2.  The Company's fixed-rate
liabilities  include  fixed  annuity,  GIC  and  universal  life  reserves  and
subordinated  notes.  At March 31, 2000, these liabilities had an aggregate fair
value  (determined  by  discounting  future  contractual  cash  flows  by

                                       20
<PAGE>
related  market  rates of interest) of $4.54 billion with a duration of 4.2. The
Company's  potential  exposure  due  to  a  relative  10% decrease in prevailing
interest rates from their March 31, 2000 levels is a loss of approximately $21.6
million,  representing  an  increase  in  the  fair  value  of  its  fixed-rate
liabilities  that  is  not  offset  by  an  increase  in  the  fair value of its
fixed-rate  assets.  Because  the  Company  actively  manages  its  assets  and
liabilities  and  has  strategies  in  place to minimize its exposure to loss as
interest  rate  changes  occur, it expects that actual losses would be less than
the  estimated  potential  loss.

     Duration is a common option-adjusted measure for the price sensitivity of a
fixed-maturity  portfolio  to  changes  in  interest  rates.  It  measures  the
approximate  percentage  change  in  the market value of a portfolio if interest
rates  change  by  100  basis  points,  recognizing  the  changes  in cash flows
resulting  from  embedded  options  such  as  policy  surrenders,  investment
prepayments  and  bond  calls.  It  also  incorporates  the  assumption that the
Company  will  continue  to utilize its existing strategies of pricing its fixed
annuity,  universal  life  and  GIC products, allocating its available cash flow
amongst  its  various  investment  portfolio  sectors and maintaining sufficient
levels  of  liquidity.  Because  the calculation of duration involves estimation
and  incorporates assumptions, potential changes in portfolio value indicated by
the  portfolio's  duration  will  likely  be  different  from the actual changes
experienced  under  given  interest  rate  scenarios, and the differences may be
material.

     As  a component of its asset and liability management strategy, the Company
utilizes  interest rate swap agreements ("Swap Agreements") to match assets more
closely  to  liabilities.  Swap  Agreements  are  agreements  to exchange with a
counterparty  interest  rate  payments  of  differing  character  (for  example,
variable-rate payments exchanged for fixed-rate payments) based on an underlying
principal  balance  (notional principal) to hedge against interest rate changes.
The  Company  typically  utilizes  Swap  Agreements  to  create  a  hedge  that
effectively  converts  floating-rate  assets  and  liabilities  into  fixed-rate
instruments.  At  March 31, 2000, the Company had one outstanding Swap Agreement
with  a  notional  principal amount of $21.5 million.  This agreement matures in
December  2024.

     The  Company  also  seeks  to  provide liquidity from time to time by using
reverse  repurchase  agreements  ("Reverse  Repos") and by investing in MBSs. It
also  seeks  to enhance its spread income by using Reverse Repos.  Reverse Repos
involve  a sale of securities and an agreement to repurchase the same securities
at  a  later date at an agreed upon price and are generally over-collateralized.
MBSs  are generally investment-grade securities collateralized by large pools of
mortgage  loans.  MBSs generally pay principal and interest monthly.  The amount
of  principal  and interest payments may fluctuate as a result of prepayments of
the  underlying  mortgage  loans.

     There  are risks associated with some of the techniques the Company uses to
provide  liquidity,  enhance  its  spread  income  and  match  its  assets  and
liabilities.  The  primary  risk associated with the Company's Reverse Repos and
Swap  Agreements  is counterparty risk.  The Company believes, however, that the
counterparties  to  its  Reverse  Repos  and  Swap  Agreements  are  financially
responsible  and  that the counterparty risk associated with those  transactions
is  minimal.   It  is  the  Company's  policy  that  these

                                       21
<PAGE>
agreements  are  entered into with counterparties who have a debt rating of A/A2
or  better  from  both  S&P  and  Moody's.  The Company continually monitors its
credit  exposure  with respect to these agreements.  In addition to counterparty
risk, Swap Agreements also have interest rate risk.  However, the Company's Swap
Agreements  typically  hedge  variable-rate  assets or liabilities, and interest
rate  fluctuations that adversely affect the net cash received or paid under the
terms of a Swap Agreement would be offset by increased interest income earned on
the  variable-rate  assets or reduced interest expense paid on the variable-rate
liabilities.  The  primary risk associated with MBSs is that a changing interest
rate  environment might cause prepayment of the underlying obligations at speeds
slower or faster than anticipated at the time of their purchase.  As part of its
decision  to  purchase  an  MBS,  the Company assesses the risk of prepayment by
analyzing  the  security's  projected performance over an array of interest-rate
scenarios.  Once an MBS is purchased, the Company monitors its actual prepayment
experience  monthly to reassess the relative attractiveness of the security with
the  intent  to  maximize  total  return.

     INVESTED  ASSETS  EVALUATION  is  routinely  conducted  by  the  Company.
Management  identifies  monthly  those  investments  that  require  additional
monitoring  and  carefully  reviews  the  carrying values of such investments at
least  quarterly to determine whether specific investments should be placed on a
nonaccrual  basis  and  to  determine  declines  in value that may be other than
temporary.  In  making these reviews for bonds, management principally considers
the  adequacy  of  any  collateral,  compliance  with contractual covenants, the
borrower's  recent  financial  performance,  news  reports  and other externally
generated information concerning the creditor's affairs. In the case of publicly
traded  bonds,  management also considers market value quotations, if available.
For  mortgage  loans,  management generally considers information concerning the
mortgaged  property  and,  among other things, factors impacting the current and
expected payment status of the loan and, if available, the current fair value of
the  underlying  collateral. For investments in partnerships, management reviews
the financial statements and other information provided by the general partners.

     The  carrying values of investments that are determined to have declines in
value  that are other than temporary are reduced to net realizable value and, in
the case of bonds, no further accruals of interest are made.  The provisions for
impairment  on  mortgage  loans are based on losses expected by management to be
realized  on  transfers of mortgage loans to real estate, on the disposition and
settlement  of mortgage loans and on mortgage loans that management believes may
not  be collectible in full. Accrual of interest is suspended when principal and
interest  payments  on  mortgage  loans  are  past  due  more  than  90  days.

     DEFAULTED INVESTMENTS, comprising all investments that are in default as to
the  payment  of  principal  or  interest, totaled $1.1 million ($0.7 million of
mortgage  loans  and  $0.4  million of bonds) at March 31, 2000, and constituted
less  than  0.1%  of  total  invested  assets.  At  December 31, 1999, defaulted
investments  totaled  $0.9  million  ($0.7  million  of  mortgage loans and $0.2
million  of  bonds),  and  constituted  less than 0.1% of total invested assets.

     SOURCES  OF  LIQUIDITY  are readily available to the Company in the form of
the  Company's  existing  portfolio  of  cash  and  short-term  investments,

                                       22
<PAGE>

Reverse  Repo  capacity  on  invested  assets  and,  if  required, proceeds from
invested  asset  sales.  At  March  31, 2000, approximately $3.18 billion of the
Bond  Portfolio  had  an  aggregate  unrealized  loss  of  $236.3 million, while
approximately  $464.4  million  of the Company's Bond Portfolio had an aggregate
unrealized  gain  of  $14.9  million.  In  addition,  the  Company's  investment
portfolio  currently  provides  approximately $47.6 million of monthly cash flow
from  scheduled  principal  and interest payments. Historically, cash flows from
operations and from the sale of the Company's annuity and GIC products have been
more  than  sufficient  in  amount  to  satisfy  the  Company's liquidity needs.

     Management  is  aware  that  prevailing  market  interest  rates  may shift
significantly  and  has  strategies  in  place  to  manage either an increase or
decrease  in  prevailing  rates.  In  a  rising  interest  rate environment, the
Company's  average  cost  of funds would increase over time as it prices its new
and renewing annuities and GICs to maintain a generally competitive market rate.
Management  would  seek  to  place new funds in investments that were matched in
duration  to,  and  higher  yielding than, the liabilities assumed.  The Company
believes  that liquidity to fund withdrawals would be available through incoming
cash  flow, the sale of short-term or floating-rate instruments or Reverse Repos
on the Company's substantial MBS segment of the Bond Portfolio, thereby avoiding
the  sale  of  fixed-rate  assets  in  an  unfavorable  bond  market.

     In a declining rate environment, the Company's cost of funds would decrease
over  time, reflecting lower interest crediting rates on its fixed annuities and
GICs.  Should  increased  liquidity  be  required  for  withdrawals, the Company
believes  that  a  significant  portion of its investments could be sold without
adverse  consequences  in  light  of  the  general  strengthening  that would be
expected  in  the  bond  market.

REGULATION

     The  Company,  in  common with other insurers, is subject to regulation and
supervision  by  the  states  and other jurisdictions in which it does business.
Within the United States, the method of such regulation varies but generally has
its  source  in  statutes  that delegate regulatory and supervisory powers to an
insurance official.  The regulation and supervision relate primarily to approval
of  policy  forms  and  rates,  the  standards  of solvency that must be met and
maintained, including risk based capital measurements, the licensing of insurers
and  their agents, the nature of and limitations on investments, restrictions on
the  size  of  risks  which  may  be  insured under a single policy, deposits of
securities  for  the  benefit  of policyholders, methods of accounting, periodic
examinations  of  the  affairs  of  insurance companies, the form and content of
reports  of  financial condition required to be filed, and reserves for unearned
premiums,  losses  and  other  purposes.  In general, such regulation is for the
protection  of  policyholders  rather  than  security  holders.

     Risk-based  capital  ("RBC") standards are designed to measure the adequacy
of  an insurer's statutory capital and surplus in relation to the risks inherent
in  its  business.  The RBC standards consist of formulas that establish capital
requirements  relating  to  insurance,  business, asset and interest rate risks.
The  standards  are  intended  to  help  identify  companies  which  are
under-capitalized  and  require  specific  regulatory  actions  in  the

                                       23
<PAGE>

event  an insurer's RBC is deficient.  The RBC formula develops a risk- adjusted
target  level  of  adjusted  statutory  capital  and surplus by applying certain
factors to various asset, premium and reserve items.  Higher factors are applied
to  more  risky  items and lower factors are applied to less risky items.  Thus,
the  target  level  of  statutory  surplus  varies  not  only as a result of the
insurer's  size,  but also on the risk profile of the insurer's operations.  The
statutory  capital and surplus of the Company exceeded its RBC requirements by a
considerable  margin  as  of  March  31,  2000.

     Federal legislation has been recently enacted allowing combinations between
insurance  companies, banks and other entities.  It is not yet known what effect
this  legislation  will  have on insurance companies.  In addition, from time to
time,  Federal  initiatives  are  proposed  that  could  affect  the  Company's
businesses.  Such  initiatives include employee benefit plan regulations and tax
law  changes affecting the taxation of insurance companies and the tax treatment
of  insurance  and  other investment products. Proposals made in recent years to
limit the tax deferral of annuities or otherwise modify the tax rules related to
the  treatment  of  annuities  have  not  been  enacted.  While  certain of such
proposals,  if  implemented, could have an adverse effect on the Company's sales
of  affected  products,  and,  consequently,  on  its results of operations, the
Company  believes  these  proposals  have  a  small likelihood of being enacted,
because  they would discourage retirement savings and there is strong public and
industry  opposition  to  them.

     SunAmerica  Asset  Management  Corp.,  a  subsidiary  of  the  Company,  is
registered  with  the SEC as an investment adviser under the Investment Advisers
Act  of  1940.  The mutual funds that it markets are subject to regulation under
the  Investment  Company Act of 1940.  SunAmerica Asset Management Corp. and the
mutual funds are subject to regulation and examination by the SEC.  In addition,
variable  annuities and the related separate accounts of the Company are subject
to  regulation  by  the  SEC under the Securities Act of 1933 and the Investment
Company  Act  of  1940.

     The  Company's  broker-dealer  subsidiaries  are  subject to regulation and
supervision by the states in which they transact business, as well as by the SEC
and  the  National  Association of Securities Dealers ("NASD").  The SEC and the
NASD have broad administrative and supervisory powers relative to all aspects of
business  and  may  examine each subsidiary's business and accounts at any time.
The SEC also has broad jurisdiction to oversee various activities of the Company
and  its  other  subsidiaries.


                                       24
<PAGE>
           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     The  quantitative  and  qualitative  disclosures  about  market  risk  are
contained in the Asset-Liability Matching section of Management's Discussion and
Analysis  of  Financial  Condition  and Results of Operations on pages 20 and 21
herein.


                                       25
<PAGE>
                     ANCHOR NATIONAL LIFE INSURANCE COMPANY
                                OTHER INFORMATION

Item  1.  Legal  Proceedings
          ------------------

  Not  applicable.

Item  2.  Changes  in  Securities  and  Use  of  Proceeds
          -----------------------------------------------

  Not  applicable.

Item  3.  Defaults  Upon  Senior  Securities
          ----------------------------------

  Not  applicable.

Item  4.  Submissions  of  Matters  to  a  Vote  of  Security  Holders
          ------------------------------------------------------------

  Not  applicable.

Item  5.  Other  Information
          ------------------

  Not  applicable.

Item  6.  Exhibits  and  Reports  on  Form  8-K
          -------------------------------------


EXHIBITS

Exhibit
  No.                         Description
-----                         -----------

10(a)     Subordinated  Loan Agreement for Equity Capital, dated March 17, 2000,
between  the  Company's  subsidiary,  SunAmerica  Capital  Services,  Inc.,  and
SunAmerica  Inc.  ("SAI"), defining SAI's rights with respect to the 8.75% notes
due  April  30,  2003.

10(b)     Subordinated  Loan  Agreement  for  Equity Capital, dated February 21,
2000,  between  the Company's subsidiary, SunAmerica Capital Services, Inc., and
SunAmerica  Inc.  ("SAI"),  defining SAI's rights with respect to the 8.5% notes
due  March  31,  2003.

27        Financial  Data  Schedule


REPORTS  FOR  FORM  8-K

There  were  no  current reports on Form 8-K filed during the three months ended
March  31,  2000.


                                       26
<PAGE>
                                   SIGNATURES

     Pursuant  to  the  requirements of the Securities and Exchange Act of 1934,
the  Registrant  has  duly  caused this report to be signed on its behalf by the
undersigned,  thereunto  duly  authorized.

     ANCHOR  NATIONAL  LIFE  INSURANCE  COMPANY
     ------------------------------------------
     Registrant



Date:  May  12,  2000     /s/  N.  SCOTT  GILLIS
---------------------     ----------------------
                          N.  Scott  Gillis
                          Senior  Vice  President
                            (Principal  Financial
                            Officer)



Date:  May  12,  2000     /s/  MAURICE  S.  HEBERT
---------------------     ------------------------
                          Maurice  S.  Hebert
                          Vice  President  and
                            Controller  (Principal
                            Accounting  Officer)


                                       27
<PAGE>
                     ANCHOR NATIONAL LIFE INSURANCE COMPANY
                             LIST OF EXHIBITS FILED

Exhibit
  No.                         Description
-----                         -----------

10(a)     Subordinated  Loan Agreement for Equity Capital, dated March 17, 2000,
between  the  Company's  subsidiary,  SunAmerica  Capital  Services,  Inc.,  and
SunAmerica  Inc.  ("SAI"), defining SAI's rights with respect to the 8.75% notes
due  April  30,  2003.

10(b)     Subordinated  Loan  Agreement  for  Equity Capital, dated February 21,
2000,  between  the Company's subsidiary, SunAmerica Capital Services, Inc., and
SunAmerica  Inc.  ("SAI"),  defining SAI's rights with respect to the 8.5% notes
due  March  31,  2003.

27          Financial  Data  Schedule


                                       28