Thrivent Variable Annuity Account B – ‘485BPOS’ on 4/24/01

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 1: 485BPOS     Post-Effective Amendment                              99±   415K 
 2: EX-14       Material Foreign Patent                                1      6K 
 3: EX-15       Letter re: Unaudited Interim Financial Information     2±    10K 
 4: EX-16       Letter re: Change in Certifying Accountant             1      7K 

485BPOS   —   Post-Effective Amendment
Document Table of Contents

485BPOS
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                                               Registration No. 33-67012
============================================================================    
SECURITIES AND EXCHANGE COMMISSION  
Washington, D.C.  20549   

FORM N-4

         REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933     [X]
               Pre-Effective Amendment No.  _______                  [ ]
               Post-Effective Amendment No. ___14__                  [X]
and/or    
    REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940  [X]
                        Amendment No. ___15__                        [X]

 LB VARIABLE ANNUITY ACCOUNT I
  (Exact Name of Registrant)

  LUTHERAN BROTHERHOOD
   (Name of Depositor)

     625 Fourth Avenue South, Minneapolis, Minnesota     55415
(Address of Depositor's Principal Executive Offices)          (Zip Code)    

  Depositor's Telephone Number, including Area Code:  (612) 340-5463

   Daniel G. Walseth
     Senior Vice President, General Counsel, and Secretary
  Lutheran Brotherhood
 625 Fourth Avenue South
   Minneapolis, Minnesota  55415
   (Name and Address of Agent for Service)

It is proposed that this filing will become effective (check appropriate        
box)                                                                            

[ ]  immediately upon filing pursuant to paragraph (b) of Rule 485          
[X]  on May 1, 2001 pursuant to paragraph (b) of Rule 485                   
[ ]  60 days after filing pursuant to paragraph (a)(1) of Rule 485          
[ ]  on (date) pursuant to paragraph (a)(1) of Rule 485                     
[ ]  75 days after filing pursuant to paragraph (a)(2) of Rule 485          
[ ]  on (date) pursuant to paragraph (a)(3) of Rule 485.                    

If appropriate, check the following box:                                        

[ ]  this post-effective amendment designates a new effective date for a    
previously filed post-effective amendment.                        

============================================================================    

485BPOS
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PROSPECTUS                                                                      
----------------------------------                                              
INDIVIDUAL FLEXIBLE PREMIUM                                                     
VARIABLE ANNUITY CONTRACT                                                       
ISSUED BY                                                                       
LUTHERAN BROTHERHOOD                                                            

625 Fourth Avenue South                                                         
Minneapolis, Minnesota 55415                                                    
(612) 340-7210                                                                  
(800) 990-6290                                                                  
----------------------------------                                              

This Prospectus describes an individual flexible premium variable annuity       
contract (the "Contract") offered by Lutheran Brotherhood ("LB" "we" or         
"us"), a fraternal benefit society organized under Minnesota law. We offer      
the Contract only in situations in which the Contract's Annuitant is            
eligible for membership in Lutheran Brotherhood. We may sell the Contract to    
or in connection with retirement plans which may or may not qualify for         
special Federal tax treatment under the Internal Revenue Code.                  

We allocate net premiums based on the Annuitant's designation to one or more    
Subaccounts of LB Variable Annuity Account I (the "Variable Account"),          
and/or to the Fixed Account (which is the general account of LB, and which      
pays interest in an amount that is at least as great as the guaranteed fixed    
rate). The assets of each Subaccount will be invested solely in a               
corresponding Portfolio of LB Series Fund, Inc. (the "Fund"), which is a        
diversified, open-end management investment company (commonly known as a        
"mutual fund"). The accompanying Prospectus for the Fund describes the          
investment objectives and attendant risks of the seven Portfolios of the        
Fund -- the Opportunity Growth Portfolio, the Mid Cap Growth Portfolio, the     
World Growth Portfolio, the Growth Portfolio, the High Yield Portfolio, the     
Income Portfolio, and the Money Market Portfolio.                               

Additional information about LB, the Contract and the Variable Account is       
contained in a Statement of Additional Information (SAI) dated May 1, 2001.     
That SAI was filed with the Securities and Exchange Commission and is           
incorporated by reference in this Prospectus.  You may obtain a copy of the     
SAI without charge by writing to us at our address above.  In addition, the     
Securities and Exchange Commission maintains a Web site (http://www.sec.gov)    
that contains the SAI.  The Table of Contents for the Statement of              
Additional Information may be found on Page 29 of this Prospectus.  Appendix    
A sets forth definitions of special terms used in this Prospectus.              

An investment in the Contract is not a deposit of a bank or financial           
institution and is not insured or guaranteed by the Federal Deposit             
Insurance Corporation or any other government agency.  An investment in the     
Contract involves investment risk including the possible loss of principal.     

The Securities and Exchange Commission has not approved or disapproved these    
securities or determined if this prospectus is truthful or complete. Any        
representation to the contrary is a criminal offense.                           

----------------------------------          

This Prospectus sets forth concisely the information about the Contract that    
a prospective investor ought to know before investing, and should be read       
and kept for future reference. It is valid only when accompanied or preceded    
by the current Prospectus of LB Series Fund, Inc.                               

----------------------------------            

The date of this Prospectus is May 1, 2001.               

485BPOS
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TABLE OF CONTENTS       
                                                                  Page
SUMMARY FEE TABLE                                                               
SUMMARY                                                                         
The Contract                                                                
Annuity Provisions                                                          
Federal Tax Status                                                          
Condensed Financial Information                                             
Performance Related Information                                             
LUTHERAN BROTHERHOOD, THE VARIABLE ACCOUNT AND THE FUND                         
Lutheran Brotherhood                                                        
The Variable Account                                                        
LB Series Fund, Inc.                                                        
Addition, Deletion or Substitution of Investments                           
THE CONTRACTS                                                                   
Purchasing a Contract                                                       
Processing Your Application                                                 
Allocation of Premium                                                       
Free Look Period                                                            
Accumulated Value, Accumulation Units and Accumulation Unit Value           
Minimum Accumulated Value                                                   
Death Benefit Before the Maturity Date                                      
Death Benefit After the Maturity Date                                       
Surrender (Redemption)                                                      
Transfers                                                                   
Telephone Transfers                                                         
Special Transfer Service -- Dollar Cost Averaging                           
Assignments                                                                 
Contract Owner, Beneficiaries and Annuitants                                
CHARGES AND DEDUCTIONS                                                          
Surrender Charge (Contingent Deferred Sales Charge)                         
Administrative Charge                                                       
Mortality and Expense Risk Charge                                           
Investment Advisory Fee of the Fund                                         
Taxes                                                                       
Sufficiency of Charges                                                      
ANNUITY PROVISIONS                                                              
Maturity Date                                                               
Maturity Proceeds                                                           
Settlement Options                                                          
Frequency of Annuity Payments                                               
Amount of Variable Annuity Payments                                         
Subaccount Annuity Unit Value                                               
GENERAL PROVISIONS                                                              
Postponement of Payments                                                    
Payment by Check                                                            
Date of Receipt                                                             
Reports to Contract Owners                                                  
Contract Inquiries                                                          
FEDERAL TAX STATUS                                                              
Introduction                                                                
Variable Account Tax Status                                                 
Taxation of Annuities in General                                            
Qualified Plans                                                             
1035 Exchanges                                                              
Diversification Requirements                                                
Withholding                                                                 
Other Considerations                                                        
EMPLOYMENT-RELATED BENEFIT PLANS                                                
VOTING RIGHTS                                                                   
SALES AND OTHER AGREEMENTS                                                      
LEGAL PROCEEDINGS                                                               
LEGAL MATTERS                                                                   
FINANCIAL STATEMENTS AND EXPERTS                                                
STATEMENT OF ADDITIONAL INFORMATION                                             
TABLE OF CONTENTS                                                           
ORDER FORM                                                                  
APPENDIX A - DEFINITIONS                                                        
APPENDIX B - CONDENSED FINANCIAL INFORMATION                                    
APPENDIX C - MORE INFORMATION ABOUT THE FIXED ACCOUNT                           
APPENDIX D - ILLUSTRATION OF MONTHLY VARIABLE ANNUITY                           
SETTLEMENT OPTION                                     

SUMMARY FEE TABLE         

The purpose of this table is to help you understand the various costs and       
expenses associated with your Contract. You may allocate premiums and           
transfer Accumulated Value to any one of the Subaccounts - Opportunity          
Growth, Mid Cap Growth, World Growth, Growth, High Yield, Income, and Money     
Market - or to the Fixed Account or to any combination of the Subaccounts       
and the Fixed Account. You pay no initial sales charge when you purchase the    
Contract. All costs that you bear directly or indirectly for the Subaccounts    
and Portfolios are shown below.  We will deduct any premium taxes that          
apply.                                                                          

Contract Owner Expenses                                                         

Sales Load Imposed on Purchase (as a percentage of purchase                 
payments)                                                          0%   
Maximum Deferred Sales Load (as a percentage of Excess                      
Amount surrendered)                                                6%(1)
Exchange Fee                                                         0%     

Annual Contract Fee                                                $30.00(2)    

Annual Subaccount Expenses                                                      
(as a percentage of average daily Accumulated Value or Annuity              
Unit Value)                                          Current(3)  Maximum    
Mortality and Expense Risk Charge                     1.10%       1.25%     
Total Subaccount Annual Expenses                      1.10%       1.25%     

Annual Expenses For Growth, High Yield, Income, Money Market,                   
Mid Cap Growth and Opportunity Growth Portfolios                                
(as a percentage of Portfolio average daily net assets)                     
Management Fees (Investment Advisory Fees)                        0.40%     
Other Expenses After Expense Reimbursement                        0%(4)     
Total Portfolio Annual Expenses                                   0.40%     

Annual Expenses For World Growth Portfolio                                      
(as a percentage of Portfolio average daily net assets)                         
Management Fees (Investment Advisory Fees)                       0.85%    
Other Expenses After Expense Reimbursement                       0%(4)    
Total Portfolio Annual Expenses                                  0.85%    

EXAMPLE (5)                                                                     
Based on the current mortality and expense risk charge                          

                                   1 year   3 years   5 years   10 years
                                   ------   -------   -------   --------
If you surrender or annuitize your                                              
Contract at the end of the                                                  
applicable time period:                                                     
You would pay the following expenses                                            
on a $1,000 investment, assuming                                            
5% annual return on assets                                                  
* For all Subaccounts except                                            
 World Growth Subaccount           $71       $ 88     $104      $180
* For World Growth Subaccount        $76       $101     $127      $229  

If you do not surrender or annuitize                                            
your Contract:                                                              
You would pay the following expenses                                            
on a $1,000 investment, assuming                                            
5% annual return on assets                                                  
* For all Subaccounts except                                            
 World Growth Subaccount           $15       $48      $ 82      $180
* For World Growth Subaccount        $20       $62      $106      $229  

EXAMPLE (5)                                                                     
Based on the maximum mortality and expense risk charge                          

                                   1 year   3 years   5 years   10 years
                                   ------   -------   -------   --------
If you surrender or annuitize your                                              
Contract at the end of the                                                  
applicable time period:                                                     
You would pay the following expenses                                            
on a $1,000 investment, assuming                                            
5% annual return on assets                                                  
* For all Subaccounts except                                            
 World Growth Subaccount           $73       $ 92     $111      $197
* For World Growth Subaccount        $77       $105     $134      $244  

If you do not surrender or annuitize                                            
your Contract:                                                              
You would pay the following expenses                                            
on a $1,000 investment, assuming                                            
5% annual return on assets                                                  
* For all Subaccounts except                                            
 World Growth Subaccount           $17       $52      $ 90      $197
* For World Growth Subaccount        $21       $66      $113      $244  
----------------                                                                

(1) A surrender charge is deducted only if a full or partial surrender          
occurs during the first six Contract Years; no surrender charge is deducted     
for surrenders occurring in Contract Years seven and later. The surrender       
charge will also be deducted at the time annuity payments begin, except         
under certain circumstances. Up to 10% of the Accumulated Value existing at     
the time the first surrender in a Contract Year is made may be surrendered      
without charge; only the Excess Amount will be subject to a surrender           
charge. The maximum charge is 6% of the Excess Amount and is in effect for      
the first Contract Year. Thereafter, the surrender charge decreases by 1%       
each subsequent Contract Year.                                                  

(2) A $30 annual administrative charge is deducted on each Contract             
Anniversary only if, on that Contract Anniversary, the total of premiums        
paid under the Contract minus all prior surrenders is less than $5,000 and      
the Accumulated Value is less than $5,000. The $30 fee is a Contract charge     
and is deducted proportionately from the Subaccounts and the Fixed Account      
that make up the Contract's Accumulated Value.                                  

(3) The current charge for motality and expense risk fees is equal to an        
annual rate of 1.10%, and we guarantee that this charge will never exceed an    
annual rate of 1.25%.  See Page 19.                                             

(4) The amount shown for Fund Annual Expenses does not reflect a deduction      
for operating expenses of the Fund, other than the investment advisory fee,     
because LB and its affiliate, Lutheran Brotherhood Variable Insurance           
Products Company ("LBVIP"), have agreed to reimburse the Fund for these         
operating expenses.  For the fiscal year of the Fund ending December 31,        
2000, the Fund was reimbursed approximately $3,897,115 for such operating       
expenses which would have represented approximately 0.04% of the average        
daily net assets of each of the Portfolios in the Fund without the              
reimbursement.  See Pages 9-11.  The Expense Reimbursement Agreement could      
be terminated at any time by the mutual agreement of the Fund, LB and LBVIP,    
but the Fund, LB and LBVIP currently contemplate that the Expense               
Reimbursement Agreement will continue so long as the Fund remains in            
existence.  If the Expense Reimbursement Agreement were terminated, the Fund    
would be required to pay these operating expenses, which would reduce the       
net investment return on the shares of the Fund held by the Subaccounts of      
the Variable Account.                                                           

(5) In these examples, the $30 annual administrative charge is approximated     
as a 0.01% charge based on LB's average contract size.                          

THE EXAMPLE SHOWING EXPENSES AT 1, 3, 5 AND 10-YEAR PERIODS SHOULD NOT BE       
CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES AND ACTUAL EXPENSES      
MAY BE GREATER OR LESS THAN THOSE SHOWN.                                        

SUMMARY     

Please refer to Appendix A at the end of this Prospectus for definitions of     
several technical terms, which can help you understand details about your       
Contract.  The Summary is an introduction to various topics related to the      
Contract.  For more detailed information on each subject, refer to the          
appropriate Page numbers.                                                       

The Contract                                                                    

Detailed explanations are provided in "The Contracts" (See Pages 12-17.)        

Issuance of a Contract. Lutheran Brotherhood issues individual flexible         
premium variable annuity contracts.  In order to purchase a Contract, you       
must submit an application to us through one of our licensed                    
representatives, who is also a registered representative of Lutheran            
Brotherhood Securities Corp. ("LBSC"). The Contracts are offered only in        
situations in which the Annuitant is eligible for membership in Lutheran        
Brotherhood. The Contract may be sold to or in connection with retirement       
plans which may or may not qualify for special Federal tax treatment under      
the Internal Revenue Code. Annuity payments under the Contract are deferred     
until a selected later date.                                                    

The minimum acceptable initial premium is $600 on an annualized basis. We       
may, at our discretion, waive this initial premium requirement. You may make    
subsequent premiums under the Contracts, but we may choose not to accept any    
subsequent premium less than $50.                                               

Free Look Period. You have the right to return the Contract within 10 days      
after you receive it.                                                           

Allocation of Premiums. You may allocate premiums under the Contract to one     
or more Subaccounts of the Variable Account and to the Fixed Account.  The      
assets of each Subaccount will be invested solely in a corresponding            
Portfolio of the Fund-                                                          

*  Opportunity Growth Portfolio                                                 
*  Mid Cap Growth Portfolio                                                     
*  World Growth Portfolio                                                       
*  Growth Portfolio                                                             
*  High Yield Portfolio                                                         
*  Income Portfolio                                                             
*  Money Market Portfolio                                                       

The Accumulated Value of the Contract in the Subaccounts and, except to the     
extent fixed amount annuity payments have been elected, the amount of           
annuity payments will vary, primarily based on the investment experience of     
the Portfolios whose shares are held in the Subaccounts designated. Premiums    
allocated to the Fixed Account will accumulate at fixed rates of interest       
declared by us. (See Appendix C.)                                               

On the date we approve the Contract Owner's application, we will transfer       
from the general account the initial premium (after deduction of any            
required premium taxes) and any interest accrued during the underwriting        
period among the Subaccount(s) and/or Fixed Account according to the            
Contract Owner's instructions. See "The Contracts--Allocation of Premiums."     
Subsequent premiums will be allocated among the Subaccounts and the Fixed       
Account in the same proportion as the initial premium, at the end of the        
Valuation Period in which we receive the subsequent premium                     

Surrenders. If a Written Notice from you requesting a surrender is received     
on or before the Maturity Date, we will pay to you all or part of the           
Accumulated Value of a Contract after deducting any applicable surrender        
charge. Partial surrenders must be for at least $200, and may be requested      
only if the remaining Accumulated Value is not less than $1,000. Under          
certain circumstances the Contract Owner may make surrenders after the          
Maturity Date.                                                                  

Transfers. On or before the Maturity Date, you may request the transfer of      
all or a part of your Contract's Accumulated Value to other Subaccounts or      
to the Fixed Account. The total amount transferred each time must be at         
least $200 (unless the total value in the Subaccount or the Fixed Account is    
less than $200, in which case the entire amount may be transferred). We         
reserve the right to limit the number of transfers in any Contract Year;        
although, we will always allow at least two transfers a year. With respect      
to the Fixed Account, transfers out of the Fixed Account are limited to only    
one each Contract Year and must be made on or within 45 days after a            
Contract Anniversary. After the Maturity Date, you may, by Written Notice       
and only once each Contract Year, change the percentage allocation of           
variable annuity payments among the available Subaccounts                       

Annuity Provisions                                                              

See Pages 20-21 for more details.                                               

You may select an annuity settlement option or options, and may select          
whether payments are to be made on a fixed or variable (or a combination of     
fixed and variable) basis.                                                      

Federal Tax Status                                                              

For a description of the Federal income tax status of annuities, see Pages      
22-26. Generally, a distribution from a Contract before the taxpayer attains    
age 59 1/2 will result in a penalty tax of 10% of the amount of the             
distribution which is includable in gross income.                               

Condensed Financial Information                                                 

Condensed financial information derived from the financial statements of the    
Variable Account is contained in Appendix B.                                    

The financial statements of LB are also contained in the Statement of           
Additional Information.                                                         

Performance Related Information                                                 

The Variable Account may advertise certain performance related information      
concerning the Subaccounts.                                                     

Yields                                                                          

The Variable Account may also advertise the Money Market Subaccount's           
"yield" and "effective yield". Both yield figures are based on historical       
earnings and are not intended to indicate future performance. The "yield" of    
the Subaccount refers to the income generated by an investment in the           
Subaccount over a seven-day period (which period will be stated in the          
advertisement). This income is then "annualized". That is, the amount of        
income generated by the investment during that week is assumed to be            
generated each week over a 52-week period and is shown as a percentage of       
the investment. The "effective yield" is calculated similarly but, when         
annualized, the income earned by an investment in the Subaccount is assumed     
to be reinvested. The "effective yield" will be slightly higher than the        
"yield" because of the compounding effect of this assumed reinvestment. The     
annualized current yield and effective yield for the seven-day base period      
ended December 31, 2000, was 5.15% and 5.29%, respectively. For more            
information, see the Statement of Additional Information.                       

The Variable Account may also advertise for the other Subaccounts yield         
quotations based on a 30-day (or one month) period, which is computed by        
dividing the net investment income per Accumulation Unit earned during the      
period (the net investment income earned by the Fund portfolio attributable     
to shares owned by the Subaccount less expenses incurred during the period)     
by the maximum offering price per Accumulation Unit on the last day of the      
period. The current yield for the 30-day base period ended December 31, 2000    
for the High Yield Subaccount was 16.02%. The current yield for the same 30-    
day base period for the Income Subaccount was 5.92%. For more information,      
see the Statement of Additional Information.                                    

Total Returns                                                                   

From time to time, we may advertise the average annual total return             
quotations for the Subaccounts for the 1-, 5- and since inception periods       
computed by finding the average annual compounded rates of return over the      
1-, 5- and since inception periods that would equate the initial amount         
invested to the ending redeemable value of a hypothetical $1,000 payment        
made at the beginning of the 1-, 5- or since inception periods. For some        
subaccounts, average annual total return figures also are provided for a 10-    
year period based on a hypothetical contract assumed to have been invested      
in a Portfolio of the Fund when that Portfolio was first available for          
investment under a variable annuity contract issued by LB's affiliate,          
Lutheran Brotherhood Variable Insurance Products Company ("LBVIP").  LBVIP      
is an indirect subsidiary of LB.                                                

The average annual total returns for the Subaccounts for the 1-year, 5-year,    
and since inception periods through December 31, 2000, and for the 10-year      
period for a hypothetical contract issued by LBVIP are as follows:              

                                   Since
                             1 Year    5 Year   Inception      10 Year
                              -----    ------   ---------      -------
Opportunity Growth                                                              
Subaccount (1/18/96)           -12.10%       --      5.44%*         --    
Mid Cap Growth                                                                  
Subaccount (1/30/98)             6.07%       --     21.56%          --    
World Growth Subaccount (1/18/96) -21.52%*      --      6.82%*         --       
Growth Subaccount (2/3/94)        -11.07%*   21.03%*   18.73%*      18.62%*     
High Yield Subaccount (2/3/94)    -25.69%*    0.48%*    1.74%*       8.47%*     
Income Subaccount (2/3/94)          3.27%*    4.32%*    4.85%*       7.07%*     
Money Market Subaccount (2/3/94)   -0.65%*    3.88%*    4.13%*       3.75%*     

*Does not include the annual administrative charge of $30 deducted from any     
Contract for which the total of premiums paid under such Contract minus all     
prior surrenders is less than $5,000 and the Accumulated Value is less than     
$5,000.  Inclusion of the administrative charge would reduce the total          
return figures shown above.  Assumes applicable surrender charge upon           
surrender.                                                                      

Average annual total return quotations assume a steady rate of growth.          
Actual performance fluctuates and will vary from the quoted results for         
periods of time with the quoted periods. For more information, see the          
Statement of Additional Information.                                            

LUTHERAN BROTHERHOOD, THE VARIABLE ACCOUNT
AND THE FUND    

Lutheran Brotherhood                                                            

Lutheran Brotherhood issues the Contracts.  We are a fraternal benefit          
society owned and operated for our members.  We were founded in 1917 under      
Minnesota law.  We are currently licensed to transact life insurance            
business in all 50 states and the District of Columbia. At the end of 2000,     
we had assets under management of approximately $26.4 billion.                  

We are subject to regulation by the Commerce Department of the State of         
Minnesota as well as by the insurance regulators of all the other states and    
jurisdictions in which we do business. We submit annual reports on our          
operations and finances to insurance officials in such states and               
jurisdictions. The forms of Contracts described in this Prospectus are filed    
with and (where required) approved by insurance officials in each state and     
jurisdiction in which Contracts are sold. We are also subject to certain        
Federal securities laws and regulations.                                        

The Variable Account                                                            

The Variable Account is a separate account of LB, established by our Board      
of Directors in 1993 pursuant to the laws of the State of Minnesota. The        
Variable Account meets the definition of a "separate account" under the         
federal securities laws. We have caused the Variable Account to be              
registered with the Securities and Exchange Commission (the "SEC") as a unit    
investment trust under the Investment Company Act of 1940 (the "1940 Act").     
This registration does not involve supervision by the SEC of the management     
or investment policies or practices.                                            

The assets of the Variable Account are owned by us, and we are not a trustee    
with respect to such assets. However, the Minnesota laws under which the        
Variable Account was established provide that the Variable Account shall not    
be chargeable with liabilities arising out of any other business we may         
conduct. We may transfer to our general account assets of the Variable          
Account which exceed the reserves and other liabilities of the Variable         
Account.                                                                        

Income and realized and unrealized gains and losses from each Subaccount of     
the Variable Account are credited to or charged against that Subaccount         
without regard to any of our other income, gains or losses. We may              
accumulate in the Variable Account the charge for expense and mortality         
risk, mortality gains and losses and investment results applicable to those     
assets that are in excess of net assets supporting the Contracts.               

LB Series Fund, Inc.                                                            

You may allocate the premiums paid under the Contract to one or more of the     
Subaccounts of the Variable Account. We invest the assets of each Subaccount    
in a corresponding Portfolio of the Fund. The Subaccounts and corresponding     
Portfolios of the Fund are:                                                     

Subaccount                            Corresponding Portfolio               
----------                            -----------------------               
Opportunity Growth Subaccount         Opportunity Growth Portfolio          
Mid Cap Growth Subaccount             Mid Cap Growth Portfolio              
World Growth Subaccount               World Growth Portfolio                
Growth Subaccount                     Growth Portfolio                      
High Yield Subaccount                 High Yield Portfolio                  
Income Subaccount                     Income Portfolio                      
Money Market Subaccount               Money Market Portfolio                

The Portfolios of the Fund each have an investment objective:                   

Opportunity Growth Portfolio.  To achieve long-term growth of capital by        
investing primarily in a professionally managed diversified portfolio of        
smaller capitalization common stocks.                                           

Mid Cap Growth Portfolio.  To achieve long-term growth of capital by            
investing primarily in a professionally managed diversified portfolio of        
common stocks of companies with medium market capitalizations.                  

World Growth Portfolio.  To achieve long-term growth of capital by investing    
primarily in a professionally managed diversified portfolio of common stocks    
of established, non-U.S. companies.                                             

Growth Portfolio. To achieve long-term growth of capital through investment     
primarily in common stocks of established corporations that appear to offer     
attractive prospects of a high total return from dividends and capital          
appreciation.                                                                   

High Yield Portfolio. To achieve a higher level of income through investment    
in a diversified portfolio of high yield securities ("junk bonds") which        
involve greater risks than higher quality investments, while also               
considering growth of capital as a secondary objective.                         

Income Portfolio. To achieve a high level of income over the longer term        
while providing reasonable safety of capital through investment primarily in    
readily marketable intermediate- and long-term fixed income securities.         

Money Market Portfolio. To achieve the maximum current income that is           
consistent with stability of capital and maintenance of liquidity through       
investment in high-quality, short-term debt obligations.                        

We cannot assure that the Portfolios of the Fund will achieve their             
respective investment objectives.                                               

As custodian for the Variable Account, we will hold shares of the Fund          
purchased by each Subaccount of the Variable Account.                           

The Fund is designed to provide an investment vehicle for variable annuity      
and variable life insurance contracts. Shares of the Fund are sold to other     
insurance company separate accounts of LB and LBVIP.  The Fund may, in the      
future, create new portfolios. It is conceivable that in the future it may      
be disadvantageous for both variable annuity separate accounts and variable     
life insurance separate accounts and for LBVIP and LB to invest                 
simultaneously in the Fund, although we do not foresee any such                 
disadvantages to either variable annuity or variable life insurance contract    
owners. The management of the Fund intends to monitor events in order to        
identify any material conflicts between such contract owners and to             
determine what action, if any, should be taken in response. Such action         
could include the sale of Fund shares by one or more of the separate            
accounts, which could have adverse consequences. Material conflicts could       
result from, for example:                                                       

*  Changes in state insurance laws                                    
*  Changes in Federal income tax law                                  
*  Changes in the investment management of the Fund                   
*  Differences in voting instructions between those given by the      
contract owners from the different separate accounts            

In addition, if we believe the Fund's response to any of those events or        
conflicts insufficiently protects Contract Owners, we will take appropriate     
action on our own.                                                              

The Fund is registered with the SEC under the 1940 Act as a diversified,        
open-end management investment company (commonly called a "mutual fund").       
This registration does not involve supervision by the SEC of the management     
or investment practices or policies of the Fund. Shares of the Fund may be      
sold to other separate accounts, and the Fund may in the future create new      
Portfolios.                                                                     

The Variable Account will purchase and redeem shares from the Fund at net       
asset value. Shares will be redeemed to the extent necessary for us to          
collect charges under the Contracts, to make payments upon surrenders, to       
provide benefits under the Contracts, or to transfer assets from one            
Subaccount to another as requested by Contract Owners. Any dividend or          
capital gain distribution received from a Portfolio of the Fund will be         
reinvested immediately at net asset value in shares of that Portfolio and       
retained as assets of the corresponding Subaccount.                             

The Fund receives investment advice with respect to each of its Portfolios      
from LB, which also acts as investment adviser to the Fund. LB is a             
registered investment adviser under the Investment Advisers Act of 1940. LB     
charges the Fund a daily investment advisory fee equal to an annual rate of     
0.40% of the aggregate average daily net assets of the Money Market, Income,    
High Yield, Growth, Mid Cap Growth, and Opportunity Growth Portfolios.  LB      
also charges the Fund an annual investment advisory fee equal to 0.85% of       
the aggregate average daily net assets of the World Growth Portfolio.           

LB has engaged T. Rowe Price International, Inc., ("Price International") as    
investment Subadviser for the World Growth Portfolio.  Price International,     
formerly known as Rowe Price-Fleming International, Inc., was founded in        
1979 as a joint venture between T. Rowe Price Associates, Inc. ("T. Rowe        
Price") and Robert Fleming Holdings Limited.  On August 8, 2000, T. Rowe        
Price became the sole owner of Price International.  Price International is     
one of the world's largest international mutual fund asset managers with the    
U.S. equivalent of about $32.7 billion under management as of December 31,      
2000 in its offices in Baltimore, London, Tokyo, Singapore, Paris, Hong Kong    
and Buenos Aires.  Price International has an investment advisory group that    
has day-to-day responsibility for managing the World Growth Portfolio and       
developing and executing the Portfolio's investment program.                    

LB pays the Subadviser an annual fee for its subadvisory services to the        
World Growth Portfolio.  The fee payable is equal to a percentage of each       
Portfolio's average daily net assets.  The percentage varies with the size      
of the Portfolio's net assets, decreasing as the Portfolio's assets             
increase.  The formula for determining the subadvisory fee is described         
fully in the prospectus for the Fund.                                           

You should periodically evaluate your allocation among the Subaccounts in       
light of current market conditions and the investment risks associated with     
investing in the Fund's various Portfolios. A full description of the Fund,     
its investment objectives, policies and restrictions, its expenses, the         
risks associated with investing in the Fund's Portfolios and other aspects      
of the Fund's operation is contained in the accompanying LB Series Fund,        
Inc. Prospectus, which should be carefully read in conjunction with this        
Prospectus.                                                                     

Addition, Deletion or Substitution of Investments                               

We reserve the right, subject to applicable law, to make additions to,          
deletions from, or substitutions for the shares that are held in the            
Variable Account or that the Variable Account may purchase. If Portfolio        
shares of the Fund are no longer available for investment or if in our          
judgment further investment in any Portfolio should become inappropriate in     
view of the purposes of the Variable Account, we may redeem the shares, if      
any, of that Portfolio and substitute shares of another registered open-end     
management company. We will not substitute any shares attributable to a         
Contract interest in a Subaccount of the Variable Account without notice and    
prior approval of the SEC and state insurance authorities, to the extent        
required by applicable law.                                                     

We also reserve the right to establish additional Subaccounts of the            
Variable Account, each of which would invest in shares corresponding to a       
new Portfolio of the Fund or in shares of another investment company having     
a specified investment objective. Subject to applicable law and any required    
SEC approval, we may, in our sole discretion, establish new Subaccounts or      
eliminate one or more Subaccounts if marketing needs, tax considerations or     
investment conditions warrant. Any new Subaccounts may be made available to     
existing Contract Owners on a basis to be determined by us.                     

If any of these substitutions or changes are made, we may by appropriate        
endorsement change the Contract to reflect the substitution or change. If we    
deem it to be in the best interest of Contract Owners and Annuitants, and       
subject to any approvals that may be required under applicable law, the         
Variable Account may be operated as a management company under the 1940 Act,    
it may be deregistered under that Act if registration is no longer required,    
or it may be combined with other LB separate accounts.                          

THE CONTRACTS   

Purchasing a Contract                                                           

You purchase a Contract by submitting an application to us through one of       
our licensed representatives who is also a registered representative of         
LBSC. In your application you select the features of your Contract,             
including:                                                                      

*  The amount of your initial premium.  This premium must be at least $600      
on an annualized basis, though we may choose to waive this requirement.   

*  How you plan to pay premiums after the initial premium.  We may require      
any such premium to be at least $50.                                      

*  How you want your premiums allocated among the Subaccount(s) and/or Fixed    
Account.                                                                  

*  Your age at the time you want annuity payments to begin.  This will          
establish the Maturity Date, which must be a Contract Anniversary at      
least three years after the Date of Issue.                                

*  The beneficiary to receive the benefit payable upon the death of the         
Annuitant.                                                                

Processing your Application                                                     

We will process your application after we have received both it and your        
initial premium.  Your contract's Date of Issue will be the date on which we    
receive the initial premium.  If we determine that your application is in       
good order, we will approve it within two days after the Date of Issue.  If     
we determine that the application is not in good order, we will attempt to      
complete it within five business days.  If the application is not complete      
at the end of this period, we will tell you the reason for the delay and        
inform you that we will return the initial premium to you unless you            
specifically consent to our keeping it until the application is complete.       

Allocation of Premium                                                           

If we approve your application on the Date of Issue, we will allocate the       
initial premium among the Subaccount(s) and/or the Fixed Account according      
to your application on that date.  Otherwise, we will deposit your initial      
premium in our general account where it will earn interest at a rate which      
we determine.  The interest and any cost of crediting interest will be paid     
by us, not other Contract Owners.  On the date we approve your application,     
we will allocate your initial premium (including any interest earned while      
in the general account) among the Subaccount(s) and/or the Fixed Account        
according to your application.                                                  

The allocation percentages which you select must be in whole numbers and        
their sum must be 100%.  We reserve the right to adjust allocation              
percentages to eliminate fractional percentages.  Premiums which you pay        
after the initial premium are allocated at the end of the Valuation Period      
in which we receive them using the allocation percentages specified in your     
application.  You may change the allocation percentages for future premiums     
without charge and at any time by giving us Written Notice or, if you have      
completed the Telephone Transaction Authorization Form, by telephone.  Any      
change will apply to all future premiums unless you request another change.     

The values in the Subaccounts of the Variable Account will vary with the        
investment experience of the corresponding Portfolios.  You bear the entire     
investment risk of your contract.  You should periodically review your          
allocations of premiums in light of market conditions and your overall          
financial objectives.                                                           

Free Look Period                                                                

After you receive your contract, you have a "free look" period of 10 days       
(20 days in Nevada and North Carolina; 30 days if you are age 60 or over and    
reside in California) to decide if you want to keep it.  If you decide to       
cancel the contract within the free look period, you may do so by returning     
it to us or to the representative through whom you bought it.  When we          
receive the contract at our Home Office, we will cancel it and refund to you    
an amount which depends on the state in which your contract was issued.         

In Connecticut, Georgia, Idaho, Michigan, Nevada, North Carolina, Oklahoma,     
South Carolina, Utah and Washington, we will refund all premiums which you      
have paid.  In Pennsylvania, we will refund the sum of:                         

(a)  The difference between the premiums paid and the amounts allocated to      
the Variable and Fixed Accounts; and                                  
(b)  The Accumulated Value on the day the contract is first received by us      
or our representative.                                                

In all other states, we will refund the sum of:                                 

(a)  The Accumulated Value on the date the returned contract is received by     
us or our representative;                                             
(b)  Any charges we made for premium taxes; and                                 
(c)  The amount attributable to your contract for risk charges and taxes, if    
any, deducted from the Variable Account, and for advisory fees charged
against the net asset value in the Fund portfolios.                   

In addition to the "free look" period described, the Employee Retirement        
Income Security Act of 1974 ("ERISA") grants certain revocation rights to       
contracts issued as individual retirement annuities ("IRA"s).  If your          
contract is an IRA and you revoke it under the rights granted by ERISA, we      
will refund all premiums which you have paid regardless of the state in         
which the contract was issued.                                                  

Accumulated Value, Accumulation Units, and Accumulation Unit Value              

Accumulated Value. Your Contract's value is expressed as its Accumulated        
Value. On or before the Maturity Date, Your Contract's Accumulated Value is     
the sum of:                                                                     

*  The amount which your contract has in the Fixed Account; and                 
*  The amounts which your contract has in each of the Subaccounts.  Amounts     
in the Subaccounts are calculated at the end of each Valuation Period as  
follows:                                                                  

*  First, we calculate the Accumulation Unit Value for each Subaccount.   
 This calculation recognizes those actions and events occurring during
the current Valuation Period which affect the total dollar value of 
  the Subaccount without affecting the number of Accumulation Units held
by the Subaccount. (See Accumulation Unit Value below.)             
*  Next, Contract transactions for the current Valuation Period are made. 
 These transactions in and out of each Subaccount are done in terms of
  buying and selling Accumulation Units of the Subaccount at the current
(i.e. newly-calculated) Accumulation Unit Value for the Subaccount.   
*  Finally, we calculate the amount which your contract has in each       
Subaccount by multiplying your number of Accumulation Units in the  
 Subaccount by the current Accumulation Unit Value for the Subaccount.

The Accumulated Value calculated at the end of a Valuation Period applies to    
all days in that period, including days which are not Valuation Days.  Your     
Contract's Accumulated Value will reflect the investment experience of the      
chosen Subaccounts of the Variable Account, any amount of value in the Fixed    
Account, any premiums that you pay, any surrenders you make, and any charges    
we assess in connection with the Contract. There is no guaranteed minimum       
Accumulated Value, and, because a Contract's Accumulated Value on any future    
date depends upon a number of variables, it cannot be predetermined.            

Determination of Number of Accumulation Units.                                  

Transactions in and out of a Subaccount are made by buying or selling           
Accumulation Units of the Subaccount at the Subaccount Accumulation Unit        
Value.                                                                          

Your contract buys Accumulation Units in a Subaccount when:                     

*  You allocate premiums to that Subaccount; or                                 
*  You transfer Accumulated Value into that Subaccount from another             
Subaccount or from the Fixed Account.                                     

Accumulation Units in a Subaccount are sold when:                               

*  You transfer Accumulated Value out of that Subaccount into another           
Subaccount or the Fixed Account;                                          
*  You make a surrender from that Subaccount; or                                
*  We deduct all or part of the Administrative Charge from that Subaccount.     

Accumulation Unit Value.  A Subaccount's Accumulation Unit Value is the unit    
price that is used whenever Accumulation Units of the Subaccount are bought     
or sold.  Accumulation Unit Values may increase or decrease at the end of       
each Valuation Period.  We re-determine the Accumulation Unit Value for each    
Subaccount at the end of each Valuation Period before making any                
transactions for that period that would affect the number of units held in      
the Subaccount.  Each Subaccount's Accumulation Unit Value is calculated as     
the total dollar value of that Subaccount divided by the total number of        
Accumulation Units held by that Subaccount for all contracts (including         
Accumulation Units held as reserves for variable annuities).  The total         
dollar value of a Subaccount is:                                                

(a)  the net asset value of the corresponding Portfolio of the Subaccount at    
the end of the current Valuation Period, plus                         

(b)  the amount of any dividend or capital gain distribution declared by the    
 Portfolio if the "ex-dividend" date occurs during the current Valuation
Period, plus or minus                                                 

(c)  a charge or credit for any taxes reserved which we determine to be a       
result of the investment operation of the Portfolio, minus            

(d)  the mortality and expense risk charge.  This charge is currently           
0.003014% (but guaranteed never to exceed 0.003425%) of the net assets
of  the Subaccount for each day during the current Valuation Period   
(see Page 19).                                                        

Minimum Accumulated Value                                                       

We require your contract to maintain a minimum Accumulated Value.  The          
amount which must be maintained depends on your premium paying history as       
follows:                                                                        

(a)  At the end of any 24-month period in which you pay no premiums, your       
Accumulated Value must be at least $1000 after all contract charges   
have been applied.                                                    

(b)  If you pay at least one premium every 24-months, we require only that      
the Accumulated Value always be sufficient to cover the contract's    
administrative charge (see Page 18).                                  

If we know that your contract will not meet these requirements on an            
upcoming Contract Anniversary, we will notify you 60 days before that           
anniversary and inform you of the minimum dollar amount which you must pay      
to keep the contract in force.  If you fail to pay at least that amount, we     
will terminate your contract on the Contract Anniversary.  If we do so          
because your contract failed to meet Requirement (a), we will pay you the       
remaining Accumulated Value.  If your contract fails to meet Requirement (b)    
your contract terminates without value.                                         

Death Benefit Before the Maturity Date                                          

If the Annuitant dies before the Maturity Date, the Beneficiary will be         
entitled to receive the contract's death benefit.                               

The amount of the death benefit will be the greatest of:                        

*  The Accumulated Value on the date we calculate the death benefit             
*  The sum of all premiums we received for the contract, less the amount of     
all partial surrenders (including any applicable charges) which you made; 
and                                                                       
*  The Accumulated Value on the preceding Minimum Death Benefit Date plus       
the sum of the premiums we received for the contract after that date,     
less the amount of any partial surrenders (including any applicable       
charges) which you made after that date. The first Minimum Death Benefit  
Date is the Date of Issue of this contract.  Thereafter, Minimum Death    
Benefit Dates occur every six years on the Contract Anniversary.          

We calculate the death benefit on the later of:                                 

(a)  The date we receive proof of the Annuitant's death; and                    

(b)  The date we receive a written request from the Beneficiary for either a    
single sum payment or a settlement option.                            

If the Beneficiary requests a single sum payment, we will pay the death         
benefit within seven days after the date we calculate it.  If the               
beneficiary requests a settlement option, it must be an option that you         
could have selected before the Maturity Date, and the option must provide       
that either:                                                                    

a)  The principal and interest are completely distributed within five years     
after the date of death; or                                             

b)  If the beneficiary is a natural person, distribution of the principal       
and interest is made by means of a periodic payment which begins within 
one year after the date of death and is not guaranteed for a period     
which extends beyond the life expectancy of the beneficiary.            

If we do not receive a written request from the beneficiary within one year     
from the date of the Annuitant's death, we will deem the Beneficiary to have    
requested a single sum payment. Any proceeds not subsequently withdrawn will    
be paid in a lump sum on the date five years after the date of death. (If       
the Beneficiary is your spouse, he or she may, to the extent permitted by       
law, elect to continue the contract in force, in which case your spouse will    
become and be treated as the Annuitant.)                                        

If your contract was issued in connection with a Qualified Plan, additional     
restrictions on the manner of payment of the death benefit may apply.  Any      
such restrictions will be stated in the contract or the plan documents.         
Purchasers acquiring contracts pursuant to Qualified Plans should consult       
qualified pension or tax advisers.                                              

Death Benefit After the Maturity Date                                           

If the annuitant dies while we are paying you an annuity income under a         
settlement option, any death benefit payable will depend on the terms of the    
settlement option.  If a death benefit is payable, the beneficiary may elect    
to receive the proceeds in the form of a settlement option, but only if the     
payments are paid at least as rapidly as payments were being paid under the     
settlement option in effect on the date of death.  If your contract was         
issued in connection with a Qualified Plan, additional restrictions on the      
manner of payment of the death benefit may apply.                               

Surrender (Redemption)                                                          

On or before the Maturity Date, you may surrender all or part of your           
contract's Accumulated Value by giving us Written Notice.  Any surrender        
which you request will be made at the end of the Valuation Period during        
which the requirements for surrender are completed.  We will pay you the        
proceeds from a surrender within seven days after the surrender is made.        
The proceeds will be the amount surrendered less any surrender charge (see      
Page 18).                                                                       

A surrender reduces your Accumulated Value by the amount surrendered.  For      
amounts surrendered from a Subaccount, this is done by selling Accumulation     
Units of the Subaccount.  For partial surrenders, we allocate the surrender     
among the Subaccounts and the Fixed Account so that all accounts are reduced    
in value by the same percentage.  With our approval, you may specify a          
different allocation for a partial surrender.                                   

A partial surrender must be at least $200. and must not reduce the remaining    
Accumulated Value to less than $1,000.  When you request a partial              
surrender, you specify the amount which you want to receive as a result of      
the surrender.  If there are no surrender charges or withholding taxes          
associated with the surrender, the amount surrendered will be the amount        
which you request.  Otherwise, the amount surrendered will be the amount        
necessary to provide the amount requested after we apply the surrender          
charge and any withholding taxes.                                               

After the Maturity Date, your contract does not have an Accumulated Value       
which can be surrendered.  However, if you are receiving annuity payments       
under certain settlement options, surrender may be allowed.  Surrender is       
not allowed if your settlement option involves a life income or if you          
agreed not to revoke or change the option once annuity payments begin.  For     
other settlement options, the amount available for surrender will be the        
commuted value of any unpaid annuity payments computed on the basis of the      
assumed interest rate incorporated in the annuity payments.                     

For all surrenders, you should consider the tax implications of a surrender     
before you make a surrender request.  See Pages 22-26.                          

Transfers                                                                       

On or before the Maturity Date, you may request the transfer of all or a        
part of your contract's Accumulated Value among the Subaccounts of the          
Variable Account and the Fixed Account.                                         

You can request a transfer in two ways:                                         
1)  By giving us written notice                                                 
2)  By telephone after completing a Telephone Transaction Authorization         
Form.                                                                   

We will make the transfer without charge at the end of the Valuation period     
during which we receive your request.  For transfers from the Fixed account     
to a Subaccount of the Variable Account, the amount taken from the Fixed        
Account is used to buy Accumulation Units of the chosen Subaccount.  For        
transfers from a Subaccount, Accumulation Units of the Subaccount are sold      
and the resulting dollar amount is, depending on your request, either           
transferred to the Fixed Account or used to buy Accumulation Units of           
another Subaccount.                                                             

Transfers are subject to the following conditions:                              

*  The total amount transferred must be at least $200.  However, if the         
total value in a Subaccount or the Fixed Account is less than $200, the   
entire amount may be transferred.                                         
*  We reserve the right to limit the number of transfers in each Contract       
Year.  However, we will always allow at least two transfers per Contract  
Year.  (For contracts issued in Texas, we allow twelve transfers per      
Contract Year.)                                                           
*  In any Contract Year, only one of your allowed transfers may be from the     
Fixed Account.  Any transfer from the Fixed Account must be made on or    
within 45 days after a Contract Anniversary.                              

Transfers will also be subject to any conditions which the Portfolio whose      
shares are involved may impose,                                                 

After the Maturity Date, you may, by Written Notice and only once each          
Contract Year, change the percentage allocation of variable annuity payments    
among the available Subaccounts.                                                

Telephone Transfers                                                             

Telephone transfers are available when you complete the Telephone               
Transaction Authorization Form. If you elect to complete the Telephone          
Transaction Authorization Form, you thereby agree that we, our agents and       
employees will not be liable for any loss, liability cost or expense when       
we, our agents and employees act in accordance with the telephone transfer      
instructions that have been properly received and recorded on voice             
recording equipment. If a telephone authorization or instruction, processed     
after you have completed the Telephone Transaction Authorization Form, is       
later determined not to have been made by you or was made without your          
authorization, and a loss results from such unauthorized instruction, you       
bear the risk of this loss. We will employ reasonable procedures to confirm     
that instructions communicated by telephone are genuine. In the event we do     
not employ such procedures, we may be liable for any losses due to              
unauthorized or fraudulent instructions. Such procedures may include, among     
others, requiring forms of personal identification prior to acting upon         
telephone instructions, providing written confirmation of such instructions     
and/or tape recording telephone instructions.                                   

Special Transfer Service -- Dollar Cost Averaging                               

We administer a dollar cost averaging program which enables you to pre-         
authorize the periodic transfer of predetermined dollar amounts from the        
Money Market Subaccount to as many of the other Subaccounts or to the Fixed     
Account as you specify.  This program is generally suitable if you are          
making a substantial deposit to your Contract and wish to use the other         
Subaccounts or the Fixed Account investment option, but desire to control       
the risk of investing at the top of a market cycle.  This program allows        
such investments to be made in equal installments over time in an effort to     
reduce such risk. Dollar cost averaging does not guarantee that the Variable    
Account will gain in value, nor will it protect against a decline in value      
if market prices fall. However, if you can continue to invest regularly         
throughout changing market conditions, it can be an effective strategy to       
help meet your long-term goals.                                                 

If you are interested in the dollar cost averaging program you may obtain an    
application and full information concerning the program and its restrictions    
from us.  If you enter into a dollar cost averaging agreement with us, it       
will continue until the amount in the Money Market Subaccount is exhausted      
or you terminate the agreement.                                                 

Assignments                                                                     

Assignment is the transfer of contract ownership from one party to another.     
If a Contract is used in a Qualified Plan and the Contract Owner is a trust,    
custodian or employer, then the Contract Owner may transfer ownership to the    
Annuitant. Otherwise, the Contract may not be sold, assigned, discounted or     
pledged as collateral for a loan or as security for performance of an           
obligation or for any other purpose to any person other than LB.                

If the Contract is not used in a Qualified Plan, then ownership may be          
transferred, but not to a natural person, and the Contract may be assigned      
as Collateral.                                                                  

We are not bound by an assignment unless it is in writing and filed at our      
Home Office.  We are not responsible for the validity or effect of any          
assignment.                                                                     

You should consider the tax implications of an assignment. See Pages 22-26.     

Contract Owner, Beneficiaries and Annuitants                                    

Unless another owner is named in the application, the Annuitant is the owner    
of the Contract and may exercise all of the owner's rights under the            
Contract.                                                                       

The Contract Owner may name a Beneficiary to receive the death benefit          
payable under the Contract. If the Beneficiary is not living on the date        
payment is due or if no Beneficiary has been named, the death benefit will      
be paid to the estate of the Annuitant.                                         

The owner may change the Beneficiary by giving us Written Notice of the         
change.  The change will not be effective until we receive your Written         
Notice at our Home Office.  Once we receive it, the change will be effective    
as of the date on which you signed the notice.  However, the change will not    
affect any payments made or actions taken by us before we received your         
notice, and we will not be responsible for the validity of any change.          

CHARGES AND DEDUCTIONS    

Surrender Charge (Contingent Deferred Sales Charge)                             

We do not deduct a charge for sales expenses from premiums at the time          
premiums are paid.  Instead, we deduct a charge at the time you surrender       
all or part of the your Accumulated Value.  This surrender charge applies       
only during the first six Contract Years.  During those years, we calculate     
the surrender charge as a percentage of the amount which you surrender,         
subject to certain exceptions noted below.                                      

Surrender Charges                                                               

Contract Year        Percent Applied          
-------------        ---------------          
1                     6%          
2                     5%          
3                     4%          
4                     3%          
5                     2%          
6                     1%          

After Contract Year 6 there is no charge for making surrenders. In addition,    
during the first six Contract Years we will limit or waive surrender charges    
as follows:                                                                     

*  Cumulative Percent-of-Premium Limit.  For all surrenders, we will limit      
the Surrender Charge so that on any date, the sum of all surrender        
charges applied to that date will not exceed 6.5% of the total of         
premiums you have paid to that date.                                      
*  Surrenders Paid Under Certain Settlement Options.  For surrenders which      
you make after Contract Year 3, there is no surrender charge applied      
to amounts which you elect to have paid under:                            

1)  A settlement option for a fixed amount or a fixed period (including   
Option 3V described on Page 20).                                  
   if the payments will be made for at least five years and you agree at
  the time of settlement that after the first payment is made, you may
not revoke or change the settlement option.                       
2)  Options which involve a life income, including Option 4V or 5V        
described on Page 20.                                             

*  Ten Percent Free Each Contract Year.  In each Contract Year, you may         
surrender without a Surrender Charge up to 10% of the Accumulated Value   
existing at the time of your first surrender made in that Contract Year.  
This "Ten Percent Free" is not cumulative.  For example, if you make no   
surrenders during the first three Contract Years, the percentage of       
Accumulated Value which you may surrender without charge in the fourth    
Contract Year is 10%, not 40%.                                            
*  Total Disability of the Annuitant.  There is no surrender charge if the      
Annuitant is totally disabled (as defined in your contract) on the date   
of a surrender.                                                           

Certain surrenders are subject to a 10% Federal tax penalty on the amount of    
income withdrawn.  See Pages 22-26.                                             

If surrender charges are not sufficient to cover our sales expenses, we will    
bear the loss; conversely, if the amount of such charges proves more than       
enough, we will retain the excess (see "Sufficiency of Charges" below). We      
do not currently believe that the surrender charges we impose will cover our    
expected costs of distributing the Contracts.                                   

Administrative Charge                                                           

Your Contract includes an annual administrative charge of $30 to help us        
cover the expenses we incur in administrating your contract, the Variable       
Account and the Subaccounts.  On each Contract Anniversary prior to and         
including the Maturity Date, we will determine if this charge will be           
applied to your contract.  We apply the charge only on Contract                 
Anniversaries on which the sum of premiums you have paid less the amount of     
any Partial Surrenders you have made is less than $5,000 and the Accumulated    
Value is less than $5,000.  We deduct the charge from your Accumulated          
Value, allocating the deduction among the Subaccounts and the Fixed Account     
so that all accounts are reduced in value by the same percentage.  Any such     
deduction from a Subaccount is made by selling Accumulation Units of the        
Subaccount.  With our approval, you may specify a different allocation for      
the administrative charge.                                                      

Mortality and Expense Risk Charge                                               

We assume certain financial risks associated with the contracts.  Those         
risks are of two basic types:                                                   

*  Mortality Risk.  This includes our risk that (1) Death Benefits paid         
before the Maturity Date will be greater than the Accumulated Value       
available to pay those benefits, and (2) annuitant payments involving     
life incomes will continue longer than we expected due to lower than      
expected death rates of the persons receiving them.                       

*  Expense Risk.  This is the risk that the expenses we incur to issue and      
maintain contracts will exceed the charges that we make to cover those    
expenses.                                                                 

As compensation for assuming these risks, we deduct a daily mortality and       
expense risk charge from the average daily net assets in the Variable           
Account.  The current charge (0.003014% per day) is equal to an annual rate     
of 1.10% (approximately 0.80% for mortality risk and 0.30% for expense risk)    
of the average daily net assets of each Subaccount in the Variable Account.     
We may change this charge in the future, but we guarantee that it will never    
exceed an annual rate of 1.25% (0.003425% per day).                             

If the mortality and expense risk charge is insufficient to cover the actual    
cost of the mortality and expense risk assumed by us, we will bear the loss.    
We will not reduce annuity payments or increase the administrative charge to    
compensate for the insufficiency.  If the mortality and expense risk charge     
proves more than sufficient, the excess will be profit available to us for      
any appropriate corporate purpose including, among other things, payment of     
sales expenses.  See "Sufficiency of Charges" below.                            

Investment Advisory Fee of the Fund                                             

Because the Variable Account purchases shares of the Fund, the net assets of    
the Variable Account will reflect the investment advisory fee incurred by       
the Fund. See Pages 9-11, and the accompanying current LB Series Fund, Inc.     
Prospectus.                                                                     

Taxes                                                                           

Currently, no charge will be made against the Variable Account for Federal      
income taxes. We may, however, make such a charge in the future if income or    
gains within the Variable Account will result in any Federal income tax         
liability to us. Charges for other taxes, if any, attributable to the           
Variable Account may also be made. See Page 22.                                 

Sufficiency of Charges                                                          

If the amount of all charges assessed in connection with the contracts as       
described above is not enough to cover all expenses incurred in connection      
therewith, we will bear the loss.  Any such expenses borne by us will be        
paid out of our general account which may include, among other things,          
proceeds derived from mortality and expense risk charges deducted from the      
Variable Account.  Conversely, if the amount of such charges proves more        
than enough, we will retain the excess.                                         

ANNUITY PROVISIONS                                                              

Maturity Date                                                                   

The Maturity Date is the date on which we begin paying you your contract's      
annuity income.  This date is based on the maturity age which you specify in    
your application.  You may change the Maturity Date by giving us Written        
Notice at least 30 days before both the Maturity Date currently in effect       
and the new Maturity Date.  The new date selected must satisfy our              
requirements for a Maturity Date and any requirements that may be imposed by    
the state in which your contract was issued.                                    

Maturity Proceeds                                                               

The proceeds available on the Maturity Date will be the amount provided by      
surrendering your contract's entire Accumulated Value on that date.  If the     
Maturity Date occurs within the first six Contract Years, surrender charges     
will be deducted from the Accumulated Value if they apply.                      

We will pay you the proceeds at maturity according to the annuity settlement    
option which you select.  However, we will pay the proceeds in a single sum     
if the Accumulated Value on the Maturity Date is less than $2,000 or if you     
elect to receive the proceeds in a single sum.  If we pay you proceeds in a     
single sum, your contract will terminate on the Maturity Date.                  

If you have not selected either a settlement option or a single sum payment     
by the Maturity Date, we will pay proceeds of $2,000 or more using a fixed      
annuity, life income with 10-year guarantee period.                             

Settlement Options                                                              

You may elect to have proceeds paid to you under an annuity settlement          
option or a combination of options.  Under each option, you may choose          
whether annuity payments are to be made on a fixed or variable basis.  You      
may change your choice of settlement option by giving us Written Notice at      
least 30 days before the Maturity Date.                                         

The fixed annuity settlement options available to you are described in your     
contract but are not summarized here.  The variable annuity settlement          
options which your contract offers are as follows:                              

Option 3V--Income for a Fixed Period.  Under this option, we pay an annuity     
income for a fixed number of years, not to exceed 30.                           

Option 4V--Life Income with Guaranteed Period.  Under this option, we pay an    
annuity income for the lifetime of the payee.  If the payee dies during the     
guaranteed period, payments will be continued to the end of that period and     
will be paid to the Beneficiary.  You may select a guaranteed period of 10      
or 20 years. You may not revoke or change the option once annuity payments      
begin.                                                                          

Option 5V--Joint and Survivor Life Income with Guaranteed Period.  Under        
this option, we pay an annuity income for as long as at least one of two        
payees is alive.  If both payees die during the guaranteed period, payments     
will be continued to the end of that period and will be paid to the             
Beneficiary.  You may select a guaranteed period of 10 or 20 years.  You may    
not revoke or change the option once annuity payments begin.                    

In addition to these options, proceeds may be paid under any other              
settlement option which you suggest and to which we agree.                      

Frequency of Annuity Payments                                                   

Annuity payments under a settlement option will be paid at monthly intervals    
unless you and we agree to a different payment schedule.  If annuity            
payments would be or become less than $25 ($20 for contracts issued in the      
state of Texas) if a single settlement option is chosen, or $25 ($20 for        
contracts issued in the state of Texas) on each basis if a combination of       
variable and fixed options is chosen, we may change the frequency of            
payments to intervals that will result in payments of at least $25 ($20 for     
contracts issued in the state of Texas) each from each option chosen.           

Amount of Variable Annuity Payments                                             

The amount of the first variable annuity payment is determined by applying      
the proceeds to be paid under a particular settlement option to the annuity     
table in the contract for that option.  The table shows the amount of the       
initial annuity payment for each $1,000 applied.                                

Subsequent variable annuity payments vary in amount according to the            
investment experience of the selected Subaccount(s). Assuming annuity           
payments are based on the unit values of a single Subaccount, the dollar        
amount of the first annuity payment (as determined above) is divided by the     
Annuity Unit Value as of the Maturity Date to establish the number of           
Annuity Units representing each annuity payment. This number of Annuity         
Units remains fixed during the annuity payment period. The dollar amount of     
the second and subsequent variable annuity payments is not predetermined and    
may change from payment to payment. The dollar amount of the second and each    
subsequent variable annuity payment is determined by multiplying the fixed      
number of Annuity Units by the Annuity Unit Value (see "Subaccount Annuity      
Unit Value" below) with respect to such Subaccount at the end of the last       
Valuation Date of the period with respect to which the payment is due. If       
the payment is based upon the Annuity Unit Values of more than one              
Subaccount, the procedure described here is repeated for each applicable        
Subaccount and the sum of the payments based on each Subaccount is the          
amount of the annuity payment.                                                  

The annuity tables in the contracts are based on the mortality table            
specified in the contract.  Under these tables, the longer the life             
expectancy of the Annuitant under any life annuity option or the duration of    
any period for which payments are guaranteed under the option, the smaller      
will be the amount of the first monthly variable annuity payment.  We           
guarantee that the dollar amount of each fixed and variable annuity payment     
after the first payment will not be affected by variations in expenses or in    
mortality experience from the mortality assumptions used to determine the       
first payment.                                                                  

Subaccount Annuity Unit Value                                                   

A Subaccount's Annuity Unit Value is used to determine the dollar value of      
annuity payments based on Annuity Units of the Subaccount.  Annuity Unit        
Values may increase or decrease during each Valuation Period.  We re-           
determine the Annuity Unit Value for each Subaccount at the end of each         
Valuation Period before making any transactions for that period that would      
affect the number of units held in the Subaccount.  Each Subaccount's           
Annuity Unit Value is equal to (a) times (b) times (c) where:                   

(a)  Is that Subaccount's Annuity Unit Value at the end of the immediately      
preceding Valuation Period.                                           
(b)  Is that Subaccount's investment factor for the current Valuation           
Period.                                                               
(c)  Is a discount factor equivalent to an assumed investment earnings rate     
of 3 1/2% per year.                                                   

The investment factor used in (b) measures the investment performance of the    
Subaccount during the Valuation Period.  It is equal to the Subaccount's        
Accumulation Unit Value at the end of the Valuation Period divided by the       
Subaccount's Accumulation Unit Value at the end of the immediately preceding    
Valuation Period.                                                               

The discount factor used in (c) offsets the effect of the assumed investment    
earnings rate of 3.5% per year that is built into the annuity tables in the     
contracts.  This means that, if the investment factor calculated in (b) were    
equivalent to an annual rate of 3.5%, (b) times (c) would be equal to one,      
the Annuity Unit Value would remain constant and the corresponding annuity      
payments would be level.                                                        

GENERAL PROVISIONS      

Postponement of Payments                                                        

We may defer payment of any surrender, death benefit or annuity payment         
amounts that are in the Variable Account if:                                    

(a)  The New York Stock Exchange is closed other than customary weekend and     
holiday closings, or trading on the New York Stock Exchange is        
restricted as determined by the SEC, or                               
(b)  An emergency exists, as determined by the SEC, as a result of which        
disposal of securities is not reasonably practicable or it is not     
 reasonably practicable to determine the value of the Variable Account's
net assets. Transfers and allocations of Accumulated Value to and from
the Subaccounts of the Variable Account may also be postponed under   
these circumstances.                                                  

Payment by Check                                                                

If a payment which we make to you depends on the premiums you pay by check,     
our payment may be delayed until your check has cleared your bank.              

Date of Receipt                                                                 

Except as otherwise stated herein, the date of our receipt of any Written       
Notice, premium payment, telephonic instructions or other communication is      
the actual date it is received at our Home Office in proper form unless         
received (1) after the close of the New York Stock Exchange, or (2) on a        
date which is not a Valuation Date.  In either of these two cases, the date     
of receipt will be deemed to be the next Valuation Date.                        

Reports to Contract Owners                                                      

At least once each year we will send you a report showing the value of your     
contract.  The report will include the Accumulated Value and any additional     
information required by law.  Values shown will be for a date no more than      
two months prior to the date we mail the report.                                

Contract Inquiries                                                              

Inquiries regarding a contract may be made by writing to us at our  Home        
Office, 625 Fourth Avenue South, Minneapolis, Minnesota 55415.                  

FEDERAL TAX STATUS      

Introduction                                                                    

The ultimate effect of Federal income taxes on a Contract's Accumulated         
Value, on annuity payments and on the economic benefit to the Contract          
Owner, the Annuitant or the Beneficiary depends upon the tax status of such     
person, LB, and, if the Contract is purchased under a retirement plan, upon     
the type of retirement plan and upon the tax and employment status of the       
individual concerned. The discussion contained herein is general in nature      
and is not intended as tax advice. No attempt is made to consider any           
applicable state or other tax laws. Moreover, the discussion contained          
herein is based on LB's understanding of Federal income tax laws as             
currently interpreted. No representation is made regarding the likelihood of    
continuation of these interpretations by the Internal Revenue Service. LB       
does not make any guarantee regarding the tax status of any Contract. Each      
person concerned should consult a qualified tax adviser.                        

Variable Account Tax Status                                                     

The Internal Revenue Code of 1986, as amended (the "Code") in effect            
provides that the income and gains and losses from separate account             
investments are not income to the insurance company issuing the variable        
contracts so long as the contracts and the separate account meet certain        
requirements set forth in the Code. Because the Contracts and the Variable      
Account intend to meet such requirements, LB anticipates no tax liability       
resulting from the Contracts, and consequently no reserve for income taxes      
is currently charged against, or maintained by LB with respect to, the          
Contracts. LB is currently exempt from state and local taxes. If there is a     
material change in state or local tax laws, charges for such taxes, if any,     
attributable to the Variable Account may be made.                               

Taxation of Annuities in General                                                

Section 72 of the Code governs taxation of annuities in general.                

Contracts Held by Individuals. An individual Contract Owner is not taxed on     
increases in the value of a Contract until a distribution occurs, either in     
the form of a single sum payment or as annuity payments under the settlement    
option selected.                                                                

Upon receipt of a single sum payment or of an annuity payment under the         
Contract, the recipient is taxed on the portion of such payment that exceeds    
the investment in the Contract.                                                 

For single sum payments, the taxable portion is generally the amount in         
excess of the premiums paid under the Contract. Such taxable portion is         
taxed at ordinary income tax rates. The investment in the Contract is not       
affected by loans or assignments of the Contract but is increased by any        
amount included in gross income as a result of the loan or assignment.          
Payments in partial or full surrender of a Contract generally will be taxed     
as ordinary income to the extent that the Accumulated Value exceeds the         
taxpayer's investment in the Contract. An assignment of the Contract (other     
than a gift to the Contract Owner's spouse or incident to a divorce) or the     
use of the Contract as collateral for a loan will be treated in the same        
manner as a surrender.                                                          

For annuity payments, the taxable portion is generally determined by a          
formula which establishes the ratio that the investment in the Contract         
bears to the expected return under the Contract as of the Maturity Date.        
Where annuity payments are made under certain Qualified Plans, the portion      
of each payment that is excluded from gross income will generally be equal      
to the total amount of any investment in the Contract as of the Maturity        
Date, divided by the number of anticipated payments, which are determined by    
reference to the age of the Annuitant. The taxable portion is taxed at          
ordinary income tax rates. For certain types of Qualified Plans there may be    
no investment in the Contract within the meaning of Section 72 of the Code.     
In such event, the total payments received may be taxable. Contract Owners,     
Annuitants and Beneficiaries under such Contracts should seek qualified tax     
and financial advice about the tax consequences of distributions under the      
retirement plan in connection with which such Contracts are purchased.          

Generally, a distribution from a Contract before the taxpayer attains age 59    
1/2 will result in an additional tax of 10% of the amount of the                
distribution which is includable in gross income. The penalty tax will not      
apply if the distribution is made as follows:                                   

(1)  in connection with death or disability as described in Section 72(q)(2)    
of the Code;                                                          

(2)  from certain Qualified Plans;                                              

(3)  under a qualified funding trust (commonly referred to as structured        
settlement plans); or                                                 

(4)  it is one of a series of substantially equal periodic annual payments      
for the life or life expectancy of the taxpayer or the joint lives or 
joint life expectancies of the taxpayer and the beneficiary; for this 
 purpose, if there is a significant modification of the payment schedule
before the taxpayer is age 59 1/2 or before the expiration of five    
 years from the time of the annuity starting date, the taxpayer's income
shall be increased by the amount of tax and deferred interest that    
otherwise would have been incurred.                                   

Depending on the type of Qualified Plan, distributions may be subject to a      
10% penalty tax.                                                                

Contracts Held by Other Than Individuals. A Contract held by other than a       
natural person, such as a corporation, estate or trust, will not be treated     
as an annuity contract for Federal income tax purposes, and the income on       
such a Contract will be taxable in the year received or accrued by the          
Contract Owner. This rule does not apply, however, if the Contract Owner is     
acting as an agent for an individual, if the Contract Owner is an estate        
which acquired the Contract as a result of the death of the decedent, if the    
Contract is held by certain Qualified Plans, if the Contract is held            
pursuant to a qualified funding trust (commonly referred to as structured       
settlement plans), if the Contract was purchased by an employer with respect    
to a terminated Qualified Plan or if the Contract is an immediate annuity.      

Multiple Contracts. Section 72(e)(11) of the Code provides that for the         
purposes of determining the amount includable in gross income, all non-         
qualified annuity contracts entered into on or after October 22, 1988 by the    
same company with the same contract owner during any calendar year shall be     
treated as one contract. This section will likely accelerate the recognition    
of income by a Contract Owner owning multiple contracts and may have the        
further effect of increasing the portion of income that will be subject to      
the 10% penalty tax described above.                                            

Qualified Plans                                                                 

The Contracts are designed for use with several types of Qualified Plans.       
When used in Qualified Plans, deferred annuities do not offer additional        
tax-deferral benefits, and taxation rules for Qualified Plans take              
precedence over annuity taxation rules.  However, annuities offer other         
product benefits to investors in Qualified Plans.  The tax rules applicable     
to participants in such Qualified Plans vary according to the type of plan      
and the terms and conditions of the plan. Therefore, no attempt is made         
herein to provide more than general information about the use of the            
Contracts with the various types of Qualified Plans. Participants under such    
Qualified Plans as well as Contract Owners, Annuitants and Beneficiaries are    
cautioned that the rights of any person to any benefits under such Qualified    
Plans may be subject to the terms and conditions of the plans themselves        
regardless of the terms and conditions of the Contracts issued in connection    
therewith. Following are brief descriptions of the various types of             
Qualified Plans and of the use of the Contracts in connection therewith.        

Tax-Sheltered Annuities. Section 403(b) of the Code permits employers of        
public school employees and of employees of certain types of charitable,        
educational and scientific organizations specified in Section 501(c)(3) of      
the Code to purchase on behalf of their employees annuity contracts and,        
subject to certain limitations, have the amount of purchase payments            
excluded from the employees' gross income for tax purposes. These annuity       
contracts are commonly referred to as "tax-sheltered annuities". Purchasers     
of the Contracts for such purposes should seek qualified advice as to           
eligibility, limitations on permissible amounts of purchase payments and tax    
consequences on distribution.                                                   

Distributions from Section 403(b) tax-sheltered annuities that are              
attributable to contributions made pursuant to a salary reduction agreement     
may be paid only when the employee reaches age 59 1/2, separates from           
service, dies or becomes disabled, or in the case of hardship (hardship, for    
this purpose, is generally defined as an immediate and heavy financial need,    
such as for paying for medical expenses, for the purchase of a principal        
residence, or for paying certain tuition expenses).                             

A participant in a Contract purchased as a tax-sheltered Section 403(b)         
annuity contract will not, therefore, be entitled to exercise the surrender     
right, described under the heading The Contracts--Surrender (Redemption)",      
in order to receive Accumulated Value attributable to elective contributions    
credited under the Contract to such participant unless one of the above-        
described conditions has been satisfied. The restrictions imposed by Section    
403(b)(11) of the Code conflict with certain sections of the 1940 Act that      
are applicable to the Contracts. In this regard, LB is relying on a no-         
action letter issued by the Office of Insurance Products and Legal              
Compliance of the SEC, and the requirements for such reliance have been         
complied with by LB.                                                            

H.R. 10 Plans. Self-employed individuals may establish Qualified Plans          
commonly referred to as "H.R. 10" plans for themselves and their employees.     
The tax consequences to participants under such plans depend upon the plan      
itself. In addition, such plans are limited by law to maximum permissible       
contributions, distribution dates, nonforfeitability of interest and tax        
rates applicable to distributions. In order to establish such a plan, a plan    
document, usually in prototype form pre-approved by the Internal Revenue        
Service, is adopted and implemented by the employer. Purchasers of the          
Contracts for use with H.R. 10 plans should seek qualified advice as to the     
suitability of the proposed plan document and of the Contracts to their         
specific needs.                                                                 

Individual Retirement Annuities. Section 408 of the Code permits eligible       
individuals to contribute to an individual retirement program known as an       
"individual retirement annuity". These individual retirement annuities are      
subject to limitations on the amount that may be contributed, on the persons    
who may be eligible, and on the time when distributions may commence. In        
addition, distributions from certain other types of Qualified Plans may be      
placed on a tax-deferred basis into an individual retirement annuity. When      
issued in connection with an individual retirement annuity, the Contracts       
will be specifically amended to conform to the requirements under such          
plans. Sales of the Contracts for use with individual retirement annuities      
may be subject to special requirements imposed by the Internal Revenue          
Service. Purchasers of the Contracts for such purposes will be provided with    
such supplementary information as may be required by the Internal Revenue       
Service or other appropriate agency.                                            

Roth IRAs. Section 408A of the Code permits eligible individuals to make        
nondeductible contributions to an individual retirement program known as a      
"Roth IRA." Section 408A includes limits on how much an individual may          
contribute to a Roth IRA and when distributions may commence. Qualified         
distributions from Roth IRAs are excluded from gross income if (a) made more    
than five years after the taxable year of the first contribution to the Roth    
IRA, and (b) meet any of the following conditions:  (1) the annuity owner       
has reached age 59 1/2; (2) the distribution is paid to a beneficiary after     
the owner's death; (3) the annuity owner is disabled; or (4) the                
distribution (not exceeding $10,000) will be used for a first time home         
purchase. Nonqualified distributions are includible in gross income only to     
the extent they exceed contributions made to the Roth IRA. The taxable          
portion of a nonqualified distribution may be subject to a 10% penalty tax.     
Subject to certain limitations, a traditional individual retirement account     
or annuity may be converted into a Roth IRA and upon such a conversion, an      
individual is required to include the taxable portion of the conversion in      
gross income, but is not generally subject to a 10% penalty tax.                

Corporate Pension and Profit-Sharing Plans. Sections 401(a) and 403(a) of       
the Code permit corporate employers to establish various types of retirement    
plans for employees. Such retirement plans may permit the purchase of the       
Contracts to provide benefits under the plans. Corporate employers intending    
to use the Contracts in connection with such plans should seek qualified        
advice in connection therewith.                                                 

Section 457 Plans. Section 457 of the Code permits states, local governments    
and tax-exempt organizations to establish deferred compensation plans on        
behalf of their employees. Such plans may permit the purchase of the            
Contracts to provide benefits under the plans. Employers intending to use       
the Contracts in connection with such plans should seek qualified advice in     
connection therewith.                                                           

1035 Exchanges                                                                  

Section 1035(a) of the Code permits the exchange of certain life insurance,     
endowment and annuity contracts for an annuity contract without a taxable       
event occurring. Thus, potential purchasers who already own such a contract     
issued by another insurer are generally able to exchange that contract for a    
Contract issued by LB without a taxable event occurring. There are certain      
restrictions which apply to such exchanges, including that the contract         
surrendered must truly be exchanged for the Contract issued by LB and not       
merely surrendered in exchange for cash. Further, the same person or persons    
must be the obligee or obligees under the Contract received in the exchange     
as under the original contract surrendered in the exchange. Careful             
consideration must be given to compliance with the Code provisions and          
regulations and rulings relating to exchange requirements, and potential        
purchasers should be sure that they understand any surrender charges or loss    
of benefits which might arise from terminating a contract they hold. Owners     
considering such an exchange should consult their tax advisers to insure        
that the requirements of Section 1035 are met.                                  

Diversification Requirements                                                    

The Code imposes certain diversification standards on the underlying assets     
of variable annuity contracts. The Code provides that a variable annuity        
contract shall not be treated as an annuity contract for any period (and any    
subsequent period) for which the investments are not "adequately                
diversified". The assets of the Fund are expected to meet the                   
diversification requirements. LB will monitor the Contracts and the             
regulations of the Treasury Department to ensure that the Contract will         
continue to qualify as a variable annuity contract. Disqualification of the     
Contract as an annuity contract would result in imposition of Federal income    
tax on the Contract Owner with respect to earnings allocable to the Contract    
prior to the receipt of payments under the Contract.                            

Withholding                                                                     

The taxable portion of a distribution to an individual is subject to Federal    
income tax withholding unless the taxpayer elects not to have withholding.      
LB will provide the Contract Owner with the election form and further           
information as to withholding prior to the first distribution. Generally,       
however, amounts are withheld from periodic payments at the same rate as        
wages and at the rate of 10% from non-periodic payments. For complete           
information on withholding, a qualified tax adviser should be consulted.        

Other Considerations                                                            

Because of the complexity of the law and its application to a specific          
individual, tax advice may be needed by a person contemplating purchase of a    
Contract or the exercise of elections under a Contract. The above comments      
concerning Federal income tax consequences are not exhaustive, and special      
rules are provided with respect to situations not discussed in this             
Prospectus.                                                                     

The preceding description is based upon LB's understanding of current           
Federal income tax law. LB cannot assess the probability that changes in tax    
laws, particularly affecting annuities, will be made.                           

The preceding comments do not take into account state income or other tax       
considerations which may be involved in the purchase of a Contract or the       
exercise of elections under the Contract. For complete information on such      
Federal and state tax considerations, a qualified tax adviser should be         
consulted.                                                                      

EMPLOYMENT-RELATED BENEFIT PLANS  

The Contracts described in this Prospectus (except for Contracts issued in      
the state of Montana) involve settlement option rates that distinguish          
between men and women. Montana has enacted legislation requiring that           
optional annuity benefits offered pursuant to Contracts purchased in Montana    
not vary on the basis of sex. On July 6, 1983, the Supreme Court held in        
Arizona Governing Committee v. Norris that optional annuity benefits            
provided under an employer's deferred compensation plan could not, under        
Title VII of the Civil Rights Act of 1964, vary between men and women on the    
basis of sex. Because of this decision, the settlement option rates             
applicable to Contracts purchased under an employment-related insurance or      
benefit program may in some cases not vary on the basis of sex. Any unisex      
rates to be provided by LB will apply for tax-qualified plans and those         
plans where an employer believes that the Norris decision applies. Employers    
and employee organizations should consider, in consultation with legal          
counsel, the impact of Norris, and Title VII generally, and any comparable      
state laws that may be applicable, on any employment-related insurance or       
benefit plan for which a Contract may be purchased.                             

VOTING RIGHTS   

To the extent required by law, LB will vote the Fund shares held in the         
Variable Account at regular and special shareholder meetings of the Fund in     
accordance with instructions received from persons having voting interests      
in the corresponding Subaccounts of the Variable Account. If, however, the      
1940 Act or any regulation thereunder should be amended or if the present       
interpretation thereof should change, and as a result LB determines that it     
is permitted to vote the Fund shares in its own right, it may elect to do       
so.                                                                             

Before the Maturity Date, the Contract Owner shall have the voting interest     
with respect to Fund shares attributable to the Contract. On and after the      
Maturity Date, the person entitled to receive annuity payments shall have       
the voting interest with respect to such shares, which voting interest will     
generally decrease during the annuity period.                                   

The number of votes which a Contract Owner or person entitled to receive        
annuity payments has the right to instruct will be calculated separately for    
each Subaccount. The number of votes which each Contract Owner has the right    
to instruct will be determined by dividing a Contract's Accumulated Value in    
a Subaccount by the net asset value per share of the corresponding Portfolio    
in which the Subaccount invests. The number of votes which each person          
entitled to receive annuity payments has the right to instruct will be          
determined by dividing the Contract's reserves in a Subaccount by the net       
asset value per share of the corresponding Portfolio in which the Subaccount    
invests. Fractional shares will be counted. The number of votes of the          
Portfolio which the Contract Owner or person entitled to receive annuity        
payments has the right to instruct will be determined as of the date            
coincident with the date established by the Portfolio for determining           
shareholders eligible to vote at the meeting of the Fund. Voting                
instructions will be solicited by written communications prior to such          
meeting in accordance with procedures established by the Fund.                  

Any Portfolio shares held in the Variable Account for which LB does not         
receive timely voting instructions, or which are not attributable to            
Contract Owners, will be voted by LB in proportion to the instructions          
received from all Contract Owners. Any Portfolio shares held by LB or its       
affiliates in general accounts will, for voting purposes, be allocated to       
all separate accounts of LB and its affiliates having a voting interest in      
that Portfolio in proportion to each such separate account's votes. Voting      
instructions to abstain on any item to be voted upon will be applied on a       
pro rata basis to reduce the votes eligible to be cast.                         

Each person having a voting interest in a Subaccount will receive proxy         
materials, reports and other materials relating to the appropriate              
Portfolio.                                                                      

SALES AND OTHER AGREEMENTS  

Lutheran Brotherhood Securities Corp. ("LBSC"), 625 Fourth Avenue South,        
Minneapolis, Minnesota 55415, an indirect subsidiary of Lutheran                
Brotherhood, acts as the principal underwriter of the Contracts pursuant to     
a Distribution Agreement to which LB and the Variable Account are also          
parties. The Contracts are sold through LB Representatives who are licensed     
by state insurance officials to sell the Contracts. These LB Representatives    
are also registered representatives of LBSC. The Contracts are offered in       
all states where LB is authorized to sell variable annuities.                   

Compensation of LB Representatives. Commissions and other distribution          
compensation to be paid to LB Representatives on the sale of Contracts will     
be paid by LB and will not result in any charge to Contract Owners or to the    
Variable Account in addition to the charges described in this Prospectus. LB    
Representatives selling the Contracts will be paid a commission of not more     
than 4% of the premiums paid on the contracts. Further, LB Representatives      
may be eligible to receive certain benefits based on the amount of earned       
commissions.                                                                    

 LEGAL PROCEEDINGS

There are no legal proceedings to which the Variable Account is a party or      
to which the assets of the Variable Account are subject.  Neither LB nor        
LBSC are involved in any litigation that is of material importance in           
relation to their total assets or that relates to the Variable Account.         

LEGAL MATTERS 

Legal matters relating to the federal securities laws and state laws            
pertaining to the Contracts, including LB's right to issue the Contracts        
thereunder, have been passed upon by John C. Bjork, counsel for LB.             

FINANCIAL STATEMENTS AND EXPERTS

Financial statements of LB and the Variable Account are contained in the        
Statement of Additional Information.                                            

The financial statements of LB and the Variable Account included in the         
Statement of Additional Information have been so included in reliance on the    
reports of PricewaterhouseCoopers LLP, independent accountants, given on the    
authority of said firm as experts in auditing and accounting.                   

 STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS 

Below is a copy of the Table of Contents included in the Statement of           
Additional Information.  To obtain a copy of this document, complete and        
mail the form below.                                                            

                                                Page
Introduction                                                                    
Custody of Assets                                                               
Independent Accountants and Financial Statements                                
Distribution of the Contracts                                                   
Calculation of Performance                                                      
Money Market Subaccount                                                   
Other Subaccounts                                                         
Financial Statements of Variable Account                                        
Comment on Financial Statements of LB                                           
Financial Statements of LB                                                      

   How To Obtain the INDIVIDUAL FLEXIBLE PREMIUM
 VARIABLE ANNUITY CONTRACT
   Statement of Additional Information

Send this request form to:  
  Lutheran Brotherhood
P.O. Box 288      
        Minneapolis, MN 55440-9041

Please send me a copy of the most recent INDIVIDUAL FLEXIBLE PREMIUM            
VARIABLE ANNUITY CONTRACT SAI.                                                  

---------------------------------------------------------------------------     
(Name)                                                      (Date)              

---------------------------------------------------------------------------     
(Street Address)                                                                

---------------------------------------------------------------------------     
(City)                                         (State)      (Zip Code)          

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APPENDIX A  
DEFINITIONS   

Annuitant. The person(s) named in the Contract whose life is used to            
determine the duration of annuity payments involving life contingencies.        

Annuity Unit. A unit of measure which is used in the calculation of the         
second and each subsequent variable annuity payment.                            

Contract. The individual flexible premium variable annuity contract offered     
by LB and described in this Prospectus.                                         

Contract Anniversary. The same date in each succeeding year as the Date of      
Issue.                                                                          

Contract Owner. The person who controls all the rights under the Contract       
while the Annuitant is alive. The Annuitant is the Contract Owner, unless       
another owner is named in the Contract application.                             

Contract Year. The period from one Contract Anniversary to the next. The        
first Contract Year will be the period beginning on the Date of Issue and       
ending on the first Contract Anniversary.                                       

Date of Issue. The date on which the application and the first premium are      
received by LB at its Home Office.                                              

Fixed Account. The Fixed Account is the general account of LB, which            
consists of all assets of LB other than those allocated to a separate           
account of LB. Premium payments allocated to the Fixed Account will be paid     
a fixed rate of interest (which may not be less than 3.0%) declared by LB at    
least annually. Amounts accumulated in the Fixed Account are guaranteed by      
LB. (See Appendix C.)                                                           

Fund. LB Series Fund, Inc., which is described in the accompanying              
Prospectus.                                                                     

Home Office. LB's office at 625 Fourth Avenue South, Minneapolis, Minnesota     
55415 or such other office as LB shall specify in a notice to the Contract      
Owner.                                                                          

LBSC. Lutheran Brotherhood Securities Corp., which is an indirect subsidiary    
of Lutheran Brotherhood and which acts as the principal underwriter of the      
Contracts.                                                                      

LB Representative. A person who is licensed by state insurance officials to     
sell the Contracts and who is also a registered representative of LBSC.         

Lutheran Brotherhood ("LB"). A fraternal benefit society organized under the    
laws of the State of Minnesota and owned by and operated for its members,       
and which acts as the investment adviser to the Fund.                           

Portfolio. A Portfolio of the Fund. Each Subaccount invests exclusively in      
the shares of a corresponding Portfolio of the Fund.                            

Qualified Plan. A retirement plan qualified under Section 401, 403 408 or       
408A or similar provisions of the Internal Revenue Code.                        

Subaccount. A subdivision of the Variable Account. Each Subaccount invests      
exclusively in the shares of a corresponding Portfolio of the Fund.             

Valuation Day. Each day the New York Stock Exchange is open for trading and     
any other day on which there is sufficient trading in the securities of a       
Portfolio of the Fund such that the current net asset value of its shares       
might be materially affected.                                                   

Valuation Period. The period commencing at the close of business of a           
Valuation Date and ending at the close of business of the next Valuation        
Date.                                                                           

Variable Account. LB Variable Annuity Account I, which is a separate account    
of LB. The Subaccounts are subdivisions of the Variable Account.                

Written Notice. A written request or notice signed by the Contract Owner and    
received by LB at its Home Office.                                              

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  APPENDIX B
 CONDENSED FINANCIAL INFORMATION

Condensed Financial Information                                                 

The following condensed financial information is derived from the financial     
statements of the Variable Account. The data should be read in conjunction      
with the financial statements, related notes and other financial information    
included in the Statement of Additional Information.                            

Selected data for Accumulation Units outstanding throughout the period          
ending December 31:                                                             

                                                        [Enlarge/Download Table]


                                            Opportunity Growth Subaccount                 
                                  ------------------------------------------------------- 
                                  2000        1999        1998        1997       1996     
                                  ----        ----        ----        ----       ----     
                                                                                          
Accumulation Unit Value:                                                                  
Beginning of period               $14.25      $11.29      $11.77      $11.79     $10.00** 
End of period                      13.24       14.25       11.29       11.77      11.79   
Number of Accumulation Units                                                              
  outstanding at end of period   18,990,589  16,400,624  16,883,494  15,755,047  8,925,231

                                     Mid Cap Growth Subaccount                            
                                  ---------------------------------                       
                                  2000        1999        1998                            
                                  ----        ----        ----                            
                                                                                          
Accumulation Unit Value:                                                                  
Beginning of period               $16.36      $11.05      $10.00***                       
End of period                      18.35       16.36       11.05                          
Number of Accumulation Units                                                              
  outstanding at end of period   18,256,799   9,407,840   4,916,782                       

                                                 World Growth Subaccount                  
                                  --------------------------------------------------------
                                  2000        1999        1998       1997        1996     
                                  ----        ----        ----       ----        ----     
                                                                                          
Accumulation Unit Value:                                                                  
Beginning of period               $17.02      $12.83      $11.11     $10.93      $10.00** 
End of period                      14.12       17.02       12.83      11.11       10.93   
Number of Accumulation Units                                                              
  outstanding at end of period   22,301,797  17,359,292  14,890,293  12,470,902  6,809,063

                                              Growth Subaccount                           
                                  ----------------------------------------------          
                                  2000        1999        1998        1997                
                                  ----        ----        ----        ----                
                                                                                          
Accumulation Unit Value:                                                                  
Beginning of period               $68.60      $48.27      $38.02      $29.52              
End of period                      64.49       68.60       48.27       38.02              
Number of Accumulation Units                                                              
  outstanding at end of period   29,904,105  27,300,490  24,210,985  19,279,447           

                                       Growth Subaccount                                  
                                  --------------------------------                        
                                  1996       1995        1994                             
                                  ----       ----        ----                             
                                                                                          
Accumulation Unit Value:                                                                  
Beginning of period               $24.38     $17.95      $19.68*                          
End of period                      29.52      24.38       17.95                           
Number of Accumulation Units                                                              
  outstanding at end of period   13,809,177  7,742,874  3,142,640                         

                                              High Yield Subaccount                       
                                  ---------------------------------------------           
                                  2000        1999        1998        1997                
                                  ----        ----        ----        ----                
                                                                                          
Accumulation Unit Value:                                                                  
Beginning of period               $29.28      $26.78      $27.50      $24.35              
End of period                      23.02       29.28       26.78       27.50              
Number of Accumulation Units                                                              
  outstanding at end of period   21,986,419  21,383,391  20,236,846  15,720,991           

                                        High Yield Subaccount                             
                                  ----------------------------------                      
                                  1996       1995        1994                             
                                  ----       ----        ----                             
                                                                                          
Accumulation Unit Value:                                                                  
Beginning of period               $22.06     $18.64      $20.41*                          
End of period                      24.35      22.06       18.64                           
Number of Accumulation Units                                                              
  outstanding at end of period   10,632,678  5,557,895  2,514,043                         

                                              Income Subaccount                           
                                  --------------------------------------------            
                                  2000        1999        1998        1997                
                                  ----        ----        ----        ----                
                                                                                          
Accumulation Unit Value:                                                                  
Beginning of period               $21.87      $22.57      $20.86      $19.39              
End of period                      23.88       21.87       22.57       20.86              
Number of Accumulation Units                                                              
  outstanding at end of period   18,874,587  18,690,873  16,424,298  11,878,420           

                                        Income Subaccount                                 
                                  -------------------------------                         
                                  1996       1995        1994                             
                                  ----       ----        ----                             
                                                                                          
Accumulation Unit Value:                                                                  
Beginning of period               $18.98     $16.07      $17.21*                          
End of period                      19.39      18.98       16.07                           
Number of Accumulation Units                                                              
  outstanding at end of period   9,066,360  5,274,785  2,264,894                          

                                              Money Market Subaccount                     
                                  ----------------------------------------------          
                                  2000        1999        1998        1997                
                                  ----        ----        ----        ----                
                                                                                          
Accumulation Unit Value:                                                                  
Beginning of period               $1.67       $1.61       $1.55       $1.48               
End of period                      1.76        1.67        1.61        1.55               
Number of Accumulation Units                                                              
  outstanding at end of period   86,928,411  88,494,861  57,199,273  34,676,637           

                                      Money Market Subaccount                             
                                  ------------------------------------                    
                                  1996       1995        1994                             
                                  ----       ----        ----                             
                                                                                          
Accumulation Unit Value:                                                                  
Beginning of period               $1.43       $1.36      $1.33*                           
End of period                      1.48        1.43       1.36                            
Number of Accumulation Units                                                              
  outstanding at end of period  31,024,219  15,771,786  5,984,694                         
----------                                                                                

*Commencing February 1, 1994, the date the Registration Statement for the       
Variable Account was declared effective.                                        

**Commencing January 18, 1996.                                                  

***Commening January 30, 1998.                                                  

The financial statements of LB are also contained in the Statement of           
Additional Information.                                                         

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  APPENDIX C
    MORE INFORMATION ABOUT THE FIXED ACCOUNT

Because of exemptive and exclusionary provisions, interests in the Fixed        
Account have not been registered under the Securities Act of 1933 ("1933        
Act"), nor is the Fixed Account registered as an investment company under       
the Investment Company Act of 1940 ("1940 Act"). Accordingly neither the        
Fixed Account nor any interests therein are generally subject to the            
provisions of the 1933 or 1940 Acts. Disclosures regarding the Fixed Account    
option and the Fixed Account, however, may be subject to certain generally      
applicable provisions of the federal securities laws relating to the            
accuracy and completeness of statements in prospectuses. LB has been advised    
that the staff of the Securities and Exchange Commission has not reviewed       
disclosure relating to the Fixed Account.                                       

Accumulated Values allocated to the Fixed Account are combined with all the     
general assets of LB and are invested in those assets chosen by LB and          
allowed by applicable law. LB allocates the investment income of the Fixed      
Account to the Contracts covered by the Fixed Account in the amounts            
guaranteed in such Contracts. Immediately prior to the Maturity Date, the       
Accumulated Value of the Contract in the Fixed Account is subject to a          
reduction for any surrender charge, if applicable.                              

Under the Fixed Account option, LB allocates premium payments to the Fixed      
Account, guarantees the amounts allocated to the Fixed Account, and pays a      
declared interest rate. The guaranteed minimum interest credited to the         
Fixed Account will be at the effective rate of 3% per year, compounded          
daily. LB may credit interest at a rate in excess of 3% per year; however,      
LB is not obligated to credit any interest in excess of 3% per year. There      
is no specific formula for the determination of excess interest credits.        
Such credits, if any, will be determined by LB based on information as to       
expected investment yields. Some of the factors that LB may consider in         
determining whether to credit interest above 3% to amounts allocated to the     
Fixed Account, and the amount thereof, are general economic trends, rates of    
return currently available and anticipated on LB's investments, regulatory      
and tax requirements and competitive factors. ANY INTEREST CREDIT TO AMOUNTS    
ALLOCATED TO THE FIXED ACCOUNT IN EXCESS OF 3% PER YEAR WILL BE DETERMINED      
AT THE SOLE DISCRETION OF LB. THE CONTRACT OWNER ASSUMES THE RISK THAT          
INTEREST CREDITED TO FIXED ACCOUNT ALLOCATIONS MAY NOT EXCEED THE MINIMUM       
GUARANTEE OF 3% FOR ANY GIVEN YEAR.                                             

Nonetheless, for any amount allocated or transferred to the Fixed Account,      
LB guarantees that the initial interest rate will be effective for at least     
12 months, and subsequent interest rates will not be changed more often than    
once every 12 months.                                                           

To the extent a fixed annuity payment option is selected by the Contract        
Owner, Accumulated Value at the Maturity Date will be transferred to the        
Fixed Account, which supports the insurance and annuity obligations of LB.      

Contract Owners have no voting rights in the Variable Account with respect      
to Fixed Account values.                                                        

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APPENDIX D          
ILLUSTRATIONS OF MONTHLY VARIABLE ANNUITY SETTLEMENT OPTION 

The illustrations included in this appendix show how the monthly variable       
annuity settlement option income may change with the investment experience      
of the Variable Account.  The illustrations show how the monthly income         
would vary over time if the investment return on the assets held in each        
Portfolio of the Fund were a uniform, gross, after-tax annual rate of 0         
percent, 5.06 percent and 12 percent, assuming the current mortality and        
expense risk charge, or 0%, 5.21%, and 12%, assuming the maximum mortality      
and expense risk charge.  The incomes would be different from those shown if    
the gross annual investment returns average the illustrated percent over a      
period of years, but fluctuated above and below these averages for              
individual Contract years.                                                      

The monthly incomes reflect the fact that the net investment return of the      
Subaccounts of the Variable Account is lower than the gross, after-tax          
return on the assets held in the Fund as a result of the advisory fee paid      
by the Fund and charges made against the Subaccounts.  The incomes shown        
take into account the following fees:  Growth (0.40%); High Yield (0.40%);      
Income (0.40%); Money Market (0.40%); Opportunity Growth (0.40%); Mid Cap       
Growth (0.40%); and World Growth (0.85%); and the daily charge to each          
Subaccount assuming, in the first illustration, the mortality and expense       
risk charge is equivalent to a charge at an annual current rate of 1.10% of     
the average assets of the Subaccounts and are guaranteed never to exceed an     
annual rate of 1.25%.  The second illustration assumes the maximum mortality    
and expense risk charge of 1.25%.  After deduction of these amounts, the        
illustrated gross investment rates of return 0%, 5.06% and 12% correspond to    
net annual rates of -1.56%, 3.50% and 10.44%, respectively, assuming the        
current mortality and expense risk charge and an average investment advisory    
fee of 0.46%.  In the illustration which assumes the maximum mortality and      
expense risk charge, the illustrated gross investment rates of return 0%,       
5.21%, and 12% correspond to net annual rates of -1.71%, 3.50% and 10.29%.      

Both illustrations assume 100% of the assets are invested in Subaccounts of     
the Variable Account.  For comparison purposes, a current fixed annuity         
income, available through the Fixed Account, is also provided.  The first       
variable payment is always based on an investment rate of 3.50%.  After the     
first variable annuity payment, future variable payments will increase if       
the annualized net rate of return exceeds the 3.50%, and will decrease if       
the annualized net rate of return is less than the 3.50%.                       

The hypothetical values shown are based upon a male, age 65 selecting a life    
income with a 10-year guaranteed period and having $100,000 of non-qualified    
funds at settlement.  Upon request, LB will provide a comparable                
illustration based upon the proposed Annuitant's age, gender (except for        
Contracts issued in the state of Montana), settlement option, type of funds     
and cash available at settlement.  Contracts purchased in Montana cannot        
vary on the basis of the Annuitant's gender.                                    

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Variable Annuity Payout Illustration    
    (Assuming the current mortality and expense risk charge)

Prepared for: Prospect                Commencement Date: 4/30/2001              

Prepared by:  Lutheran Brotherhood    Cash Available at Settlement: $100,000    

Sex: Male   Date of Birth: 4/30/1936  Funds: Nonqualified                       

State: MN                             Initial Monthly Income:  $608             

Income Option:  Life Income with 10 Year Guaranteed Period                      

The monthly variable annuity income amount shown below assumes a      
constant annual investment return.  The assumed investment rate of 3.50% is     
used to calculate the first monthly payment.  Thereafter, monthly payments      
will increase or decrease based upon the relationship between 3.50% and the     
performance of the Subaccounts selected.  The investment returns shown are      
hypothetical and not a representation of future results.                        

                                         Annual Rate of Return
                                  --------------------------------------
                                 0% Gross     5.06% Gross   12.00% Gross
  Date                   Age   (-1.56% Net)   (3.50% Net)   (10.44% Net)
-----------------------      ---   ------------   ------------  ------------    
April 30, 2001             65       $608           $608         $  608      
April 30, 2002             66        578            608            649      
April 30, 2003             67        550            608            692      
April 30, 2004             68        523            608            739      
April 30, 2005             69        498            608            788      
April 30, 2010             74        387            608          1,090      
April 30, 2015             79        301            608          1,508      
April 30, 2020             84        235            608          2,087      
April 30, 2025             89        183            608          2,886      
April 30, 2030             94        142            608          3,993      
April 30, 2035             99        111            608          5,524      
April 30, 2036            100        105            608          5,894      

If 100% of your cash available at settlement was applied to provide a fixed     
annuity on the commencement date of this illustration, the fixed annuity        
income amount would be $692.                                                    

Net rates of return reflect expenses totaling 1.56%, which consist of the       
current 1.10% Variable Account mortality and expense risk charge and 0.46%      
for the Fund advisory fee (this is an average with the actual varying from      
0.40% to 0.85%).                                                                

This is an illustration only and not a contract.                                

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Variable Annuity Payout Illustration    
    (Assuming the maximum mortality and expense risk charge)

Prepared for: Prospect                Commencement Date: 4/30/2001              

Prepared by:  Lutheran Brotherhood    Cash Available at Settlement: $100,000    

Sex: Male   Date of Birth: 4/30/1936  Funds: Nonqualified                       

State: MN                             Initial Monthly Income:  $608             

Income Option:  Life Income with 10 Year Guaranteed Period                      

The monthly variable annuity income amount shown below assumes a      
constant annual investment return.  The assumed investment rate of 3.50% is     
used to calculate the first monthly payment.  Thereafter, monthly payments      
will increase or decrease based upon the relationship between 3.50% and the     
performance of the Subaccounts selected.  The investment returns shown are      
hypothetical and not a representation of future results.                        

                                         Annual Rate of Return
                                  --------------------------------------
                                 0% Gross     5.21% Gross   12.00% Gross
  Date                   Age   (-1.71% Net)   (3.50% Net)   (10.29% Net)
-----------------------      ---   ------------   ------------  ------------    
April 30, 2001             65       $608           $608         $  608      
April 30, 2002             66        577            608            648      
April 30, 2003             67        548            608            690      
April 30, 2004             68        521            608            736      
April 30, 2005             69        495            608            784      
April 30, 2010             74        382            608          1,077      
April 30, 2015             79        295            608          1,480      
April 30, 2020             84        228            608          2,033      
April 30, 2025             89        176            608          2,794      
April 30, 2030             94        136            608          3,839      
April 30, 2035             99        105            608          5,274      
April 30, 2036            100        100            608          5,620      

If 100% of your cash available at settlement was applied to provide a fixed     
annuity on the commencement date of this illustration, the fixed annuity        
income amount would be $692.                                                    

Net rates of return reflect expenses totaling 1.71%, which consist of the       
maximum 1.25% Variable Account mortality and expense risk charge and 0.46%      
for the Fund advisory fee (this is an average with the actual varying from      
0.40% to 0.85%).                                                                

This is an illustration only and not a contract.                                

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STATEMENT OF ADDITIONAL INFORMATION     

INDIVIDUAL FLEXIBLE PREMIUM     
VARIABLE ANNUITY CONTRACT     
Issued By     
LUTHERAN BROTHERHOOD    

This Statement of Additional Information is not a prospectus, but should be     
read in conjunction with the Prospectus dated May 1, 2001 (the "Prospectus")    
describing an individual flexible premium variable annuity contract (the        
"Contract") being offered by Lutheran Brotherhood ("LB").  Purchase payments    
will be allocated to one or more Subaccounts of LB Variable Annuity Account     
I (the "Variable Account"), a separate account of LB and/or to the Fixed        
Account (which is the general account of LB, and which pays interest at a       
guaranteed fixed rate).  Much of the information contained in this Statement    
of Additional Information expands upon subjects discussed in the Prospectus.    
A copy of the Prospectus may be obtained from Lutheran Brotherhood, 625         
Fourth Avenue South, Minneapolis, Minnesota 55415.                              

Capitalized terms used in this Statement of Additional Information that are     
not otherwise defined herein shall have the meanings given to them in the       
Prospectus.                                                                     

--------------------------------------------------              

TABLE OF CONTENTS                 
                                                        Page
INTRODUCTION                                                                    
CUSTODY OF ASSETS                                                               
INDEPENDENT ACCOUNTANTS AND FINANCIAL STATEMENTS                                
DISTRIBUTION OF THE CONTRACTS                                                   
CALCULATION OF PERFORMANCE                                                      
Money Market Subaccount                                                     
Other Subaccounts                                                           
FINANCIAL STATEMENTS OF VARIABLE ACCOUNT                                        
COMMENT ON FINANCIAL STATEMENTS OF LB                                           
FINANCIAL STATEMENTS OF LB                                                      

--------------------------------------------------                

The date of this Statement of Additional Information      
is May 1, 2001.               

INTRODUCTION          

The Contracts are issued by LB.  Lutheran Brotherhood, a fraternal benefit      
society owned and operated for its members, was founded in 1917 under the       
laws of the State of Minnesota.  LB is currently licensed to transact life      
insurance business in all 50 states and the District of Columbia.  At the       
end of 2000, LB had assets under management of approximately $26.4 billion.     
The Contract may be sold to or in connection with retirement plans which may    
or may not qualify for special federal tax treatment under the Internal         
Revenue Code. Annuity payments under the Contract are deferred until a          
selected later date.                                                            

Premiums will be allocated, as designated by the Contract Owner, to one or      
more Subaccounts of the Variable Account, a separate account of LB and/or to    
the Fixed Account (which is the general account of LB, and which pays           
interest at a guaranteed fixed rate).  The assets of each Subaccount will be    
invested solely in a corresponding Portfolio of LB Series Fund, Inc. (the       
"Fund"), which is a diversified, open-end management investment company         
(commonly known as a "mutual fund").  The Prospectus for the Fund that          
accompanies the Prospectus describes the investment objectives and attendant    
risks of the seven Portfolios of the Fund-the Growth Portfolio, the High        
Yield Portfolio, the Income Portfolio, the Opportunity Growth Portfolio, the    
Mid Cap Growth Portfolio, the World Growth Portfolio and the Money Market       
Portfolio. Additional Subaccounts (together with the related additional         
Portfolios of the Fund) may be added in the future. The Accumulated Value of    
the Contract and, except to the extent fixed amount annuity payments are        
elected by the Contract Owner, the amount of annuity payments will vary,        
primarily based on the investment experience of the Portfolios whose shares     
are held in the Subaccounts designated.  Premiums allocated to the Fixed        
Account will accumulate at fixed rates of interest declared by LB.              

CUSTODY OF ASSETS   

LB, whose address appears on the cover of the Prospectus, maintains custody     
of the assets of the Variable Account.                                          

INDEPENDENT ACCOUNTANTS AND FINANCIAL STATEMENTS

The financial statements of LB and the Variable Account included in this        
Statement of Additional Information have been so included in reliance on the    
reports of PricewaterhouseCoopers LLP, independent accountants, given on the    
authority of said firm as experts in auditing and accounting.                   

The financial statements of LB should be considered only as bearing upon the    
ability of LB to meet its obligations under the Contracts. The financial        
statements of LB should not be considered as bearing on the investment          
experience of the assets held in the Variable Account.                          

DISTRIBUTION OF THE CONTRACTS     

Lutheran Brotherhood Securities Corp. ("LBSC"), an indirect subsidiary of       
Lutheran Brotherhood, acts as the principal underwriter of the Contracts        
pursuant to a Distribution Agreement to which LB and the Variable Account       
are also parties. The Contracts are sold through LB Representatives who are     
licensed by state insurance officials to sell the Contracts. These LB           
Representatives are also registered representatives of LBSC.  The Contracts     
are offered in all states where LB is authorized to sell variable annuities.    

The offering of the Contracts is continuous.                                    

There are no special purchase plans or exchange privileges not described in     
the Prospectus (see "THE CONTRACTS--Transfers" in the Prospectus).              

No charge for sales expense is deducted from premiums at the time premiums      
are paid. However, a surrender charge, which may be deemed to be a              
contingent deferred sales charge, is deducted from the Accumulation Value of    
the Contract in the case where the Contract is surrendered, in whole or in      
part, before annuity payments begin and, if certain settlement options are      
selected, at the time annuity payments begin, under the circumstances           
described in, and in amounts calculated as described in, the Prospectus         
under the heading "CHARGES AND DEDUCTIONS--Surrender Charge (Contingent         
Deferred Sales Charge)".                                                        

CALCULATION OF PERFORMANCE      

Money Market Subaccount                                                         

The Prospectus contains information with respect to the yield and effective     
yield of a hypothetical preexisting account having a balance of one Money       
Market Portfolio Subaccount Accumulation Unit at the beginning of a             
specified seven-day period. Such yield quotations have been calculated by       
determining the net change, exclusive of capital changes, in the value of a     
hypothetical pre-existing account having a balance of one Accumulation Unit     
of the Subaccount at the beginning of the period, subtracting a hypothetical    
charge reflecting deductions from Contract Owner accounts, dividing the net     
change by the value of the account at the beginning of the period to obtain     
the base period return, and multiplying the base period return by 365/7. The    
effective yield has been calculated by compounding the yield quotation for      
such period by adding 1 and raising the sum to a power equal to 365/7, and      
subtracting 1 from the result.                                                  

In determining the net change in the value of the account as described in       
the preceding paragraph, all deductions that are charged to all Contract        
Owner accounts have been reflected in proportion to the length of the seven-    
day base period and the mean (or median) account size under a substantially     
identical contract issued by an LB affiliate. Deductions from purchase          
payments and surrender charges assessed have not been reflected in, and         
realized gains and losses from the sale of securities and unrealized            
appreciation and depreciation of the Subaccount and the related portfolio       
company have been excluded from, the computation of yield.                      

This example illustrates the yield quotation for the Money Market Subaccount    
for the seven-day period ended December 31, 2000:                               

Value of hypothetical pre-existing account with exactly                         
one Accumulation Unit at the beginning of the period            $1.75444    

Value of same account (excluding capital changes) at end                        
of the seven-day period                                         $1.756174   

Net change in account value                                       $0.001734     

Base Period Return:                                                             
Net change in account value divided by beginning account value    $0.000988     
Annualized Current Yield [0.000988 X (365/7)]                          5.15%    

Effective Yield (0.000988 + 1)365/7-1                                  5.29%    

The annualization of a seven-day average yield is not a representation of       
future actual yield.                                                            

Other Subaccounts                                                               

The Prospectus contains information with respect to yield quotations by         
Subaccounts other than the Money Market Subaccount. These yield quotations      
are based on a 30-day (or one month) period computed by dividing the net        
investment income per accumulation unit earned during the period (the net       
investment income earned by the Fund portfolio attributable to shares owned     
by the Subaccount less expenses incurred during the period) by the maximum      
offering price per Accumulation Unit on the last day of the period, by          
setting yield equal to two times the difference between the sixth power of      
one plus the designated ratio and one, where the designated ratio is the        
difference between the net investment income earned during the period and       
the expenses accrued for the period (net of reimbursement) divided by the       
product of the average daily number of Accumulation Units outstanding during    
the period and the maximum offering price per Accumulation Unit on the last     
day of the period.                                                              

For fees that vary with the size of the Contract, a Contract size equal to      
the mean (or median) contract size has been assumed.                            

The following example illustrates the annualized current yield calculation      
for the High Yield Subaccount for the 30-day base period ended December 31,     
2000:                                                                           

Dividends and interest earned by the High Yield Subaccount                      
during the base period                                      $7,224,571      
Expenses accrued for the base period                          $  625,487        
                                                      ------------
                                                         $6,599,084(A)
                                                      ============
Product of the maximum public offering price on                                 
the last day of the base period and the average                             
daily number of Units outstanding during                                    
the base period that were entitled to receive                               
dividends ($22.998655 x 22,198,091 Units) =                $510,526,237(B)  
                                                       =============
Quotient of dividends and interest earned minus                                 
expenses accrued divided by product of maximum                              
public offering price multiplied by average                                 
Units outstanding (A divided by B) =                           0.012926(C)  

Adding one and raising total to the                                             
6th power (C + 1)6=                                             1.08011(D)  

Annualized current yield [2(D - 1) X 100] =                        16.02%       

The following example illustrates the annualized current yield calculation      
for the Income Subaccount for the 30-day base period ended December 31,         
2000:                                                                           

Dividends and interest earned by the Income Subaccount                          
during the base period                                      $2,765,558      
Expenses accrued for the base period                          $  551,834        
                                                    ------------
                                                         $2,213,724(A)
                                                        ============
Product of the maximum public offering price on                                 
the last day of the base period and the average                             
daily number of Units outstanding during                                    
the base period that were entitled to receive                               
dividends ($23.875704 x 19,011,840 Units) =               $453,921,064(B)   

Quotient of dividends and interest earned minus                                 
expenses accrued divided by product of maximum                              
public offering price multiplied by average                                 
Units outstanding (A divided by B) =                           0.00488(C)   
Adding one and raising total to the 6th power (C + 1)6 =         1.02963(D)     
Annualized current yield [2(D-1) X 100] =                            5.92%      

Annualized current yield of any specific base period is not a representation    
of future actual yield.                                                         

The Prospectus contains information with respect to performance data            
relating to the Contracts. Such performance data includes average annual        
total return quotations for the 1-year, 5-year and since inception periods      
computed by finding the average annual compounded rates of return over the      
1-year, 5-year and since inception periods that would equate the initial        
amount invested to the ending redeemable value, by equating the ending          
redeemable value to the product of a hypothetical initial payment of $1,000,    
and one plus the average annual total return raised to a power equal to the     
applicable number of years. For some subaccounts, average annual total          
return figures also are provided for a 10-year period based on a                
hypothetical Contract assumed to have been invested in a Portfolio of the       
Fund when that Portfolio was first available for investment under a variable    
annuity contract issued by an LB affiliate, Lutheran Brotherhood Variable       
Insurance Products Company.                                                     

Such performance data assumes that any applicable charges have been deducted    
from the initial $1,000 payment and includes all recurring fees that are        
charged to all Contract Owners. If recurring fees charged to Contract Owners    
are paid other than by redemption of Accumulation Units, such fees will be      
appropriately reflected.                                                        

Average annual total return for any specific period is not a representation     
of future actual results. Average annual total return assumes a steady rate     
of growth. Actual performance fluctuates and will vary from the quoted          
results for periods of time within the quoted periods.                          

The following example illustrates the average annual total return for the       
Growth Subaccount of a hypothetical Contract invested in the Growth             
Portfolio of the Fund from the date the Portfolio was first available for       
investment under a contract issued by LB through December 31, 2000:             

Hypothetical $1,000 initial investment on February 3, 1994           $1,000     

Ending redeemable value of the investment on                                    
December 31, 2000 (after deferred sales charge)                    $3,277   

Total return for the period is the difference between the                       
ending redeemable value and the hypothetical $1,000 initial                 
investment divided by the hypothetical $1,000 initial                       
investment; the result is expressed in terms of a percentage                
(For example, 2 equals 200%)                                      227.69%*  

Average annual total return from inception through                              
December 31, 2000 is the sum of the total return                            
calculated above plus one; such sum is raised to                            
the power of 1/n where n is expressed as six years                          
and 11 months; the result is reduced by one and is                          
expressed in terms of a percentage                                          
(For example, 0.2 equals 20%)                                      18.73%*  

The following example illustrates the average annual total return for the       
High Yield Subaccount of a hypothetical Contract invested in the High Yield     
Portfolio of the Fund from the date the Portfolio was first available for       
investment under a contract issued by LB through December 31, 2000:             

Hypothetical $1,000 initial investment on February 3, 1994                      
$1,000                                                                          

Ending redeemable value of the investment on                                    
December 31, 2000 (after deferred sales charge)                    $1,127   

Total return for the period is the difference between the                       
ending redeemable value and the hypothetical $1,000                         
initial investment divided by the hypothetical $1,000                       
initial investment; the result is expressed in terms of                     
a percentage (For example, 2 equals 200%)                         12.69%*   

Average annual total return from inception through                              
December 31, 2000 is the sum of the total return                            
calculated above plus one; such sum is raised to the                        
power of 1/n where n is expressed as six years                              
and 11 months; the result is reduced by one and is                          
expressed in terms of a percentage                                          
(For example, 0.2 equals 20%)                                      1.74%*   

The following example illustrates the average annual total return for the       
Income Subaccount of a hypothetical Contract invested in the Income             
Portfolio of the Fund from the date the Portfolio was first available for       
investment under a contract issued by LB through December 31, 2000:             

Hypothetical $1,000 initial investment on February 3, 1994                      
$1,000                                                                          

Ending redeemable value of the investment on December 31, 2000                  
(after deferred sales charge)                                      $1,387   

Total return for the period is the difference between the                       
ending redeemable value and the hypothetical $1,000                         
initial investment divided by the hypothetical $1,000                       
initial investment; the result is expressed in terms                        
of a percentage (For example, 2 equals 200%)                      38.70%*   

Average annual total return from inception through                              
December 31, 2000 is the sum of the total return                            
calculated above plus one; such sum is raised to the                        
power of 1/n where n is expressed as six years                              
and 11 months; the result is reduced by one and is                          
expressed in terms of a percentage                                          
(For example, 0.2 equals 20%)                                      4.85%*   

The following example illustrates the average annual total return for the       
Money Market Subaccount of a hypothetical Contract invested in the Money        
Market Portfolio of the Fund from the date the Portfolio was first available    
for investment under a contract issued by LB through December 31, 2000          

Hypothetical $1,000 initial investment on February 3, 1994           $1,000     

Ending redeemable value of the investment on December 31, 2000                  
(after deferred sales charge)                                      $1,323   

Total return for the period is the difference between                           
the ending redeemable value and the hypothetical $1,000                     
initial investment divided by the hypothetical $1,000                       
initial investment; the result is expressed in terms                        
of a percentage (For example, 2 equals 200%)                       32.26%*  

Average annual total return from inception through                              
December 31, 2000 is the sum of the total return                            
calculated above plus one; such sum is raised to the                        
power of 1/n where n is expressed as six years and                          
11 months; the result is reduced by one and is                              
expressed in terms of a percentage                                          
(For example, 0.2 equals 20%)                                       4.13%*  

The following example illustrates the average annual total return for the       
Opportunity Growth Subaccount from the date of inception through the period     
ended December 31, 2000:                                                        

Hypothetical $1,000 initial investment on January 18, 1996           $1,000     

Ending redeemable value of the investment on                                    
December 31, 2000 (after deferred sales charge)                    $1,300   

Total return for the period is the difference between the                       
ending redeemable value and the hypothetical $1,000                         
initial investment divided by the hypothetical $1,000                       
initial investment; the result is expressed in terms of                     
a percentage (For example, 2 equals 200%)                          30.04%*  

Average annual total return from inception through December                     
31, 2000 is the sum of the total return calculated above plus               
one; such sum is raised to the power of 1/n where n is                      
expressed as four years and 347 days; the result is reduced                 
by one and is expressed in terms of a percentage                            
(For example, 0.2 equals 20%)                                       5.44%*  

The following example illustrates the average annual total return for the       
World Growth Subaccount from the date of inception through December 31,         
2000:                                                                           

Hypothetical $1,000 initial investment on January 18, 1996          $1,000      

Ending redeemable value of the investment on December 31, 2000                  
(after deferred sales charge)                                     $1,387    

Total return for the period is the difference between the                       
ending redeemable value and the hypothetical $1,000                         
initial investment divided by the hypothetical $1,000                       
initial investment; the result is expressed in terms                        
of a percentage (For example, 2 equals 200%)                       38.68%*  

Average annual total return from inception through December                     
31, 2000 is the sum of the total return calculated above                    
plus one; such sum is raised to the power of 1/n where n                    
is expressed as four years and 347 days; the result is                      
reduced by one and is expressed in terms of a percentage                    
(For example, 0.2 equals 20%)                                      6.82%*   

The following example illustrates the average annual total return for the       
Mid Cap Growth Subaccount from the date of inception through December 31,       
2000:                                                                           

Hypothetical $1,000 initial investment on January 30, 1998          $1,000      

Ending redeemable value of the investment on December 31, 2000                  
(after deferred sales charge)                                     $1,768    

Total return for the period is the difference between the                       
ending redeemable value and the hypothetical $1,000                         
initial investment divided by the hypothetical $1,000                       
initial investment; the result is expressed in terms                        
of a percentage (For example, 2 equals 200%)                       76.85%*  

Average annual total return from inception through December 31,                 
2000 is the sum of the total return calculated above plus                   
one; such sum is raised to the power of 1/n where n is                      
expressed as two years and 335 days; the result is reduced by               
one and is expressed in terms of a percentage (For example,                 
0.2 equals 20%)                                                    21.56%*  

-----------------------------                                                   
*Does not include the annual administrative charge of $30 deducted from any     
Contract for which the total of premiums paid under such Contract minus all     
prior surrenders is less than $5,000 and the Accumulated Value is less than     
$5,000.  Inclusion of the administrative charge would reduce the total          
return figures shown above.                                                     

FINANCIAL STATEMENTS OF VARIABLE ACCOUNT  

Set forth on the following pages are the audited financial statements of the    
Variable Account.                                                               

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PricewaterhouseCoopers                                                          

[GRAPHIC OMITTED: PRINTER STRIP IN LOGO]                                        

PricewaterhouseCoopers LLP                                                      
650 Third Avenue South                                                          
Park Building                                                                   
Suite 1300                                                                      
Minneapolis MN 55402-4333                                                       
Telephone (612) 596 6000                                                        
Facsimile (612) 373 7160                                                        

Report of Independent Accountants       

To the Board of Directors of Lutheran                                           
Brotherhood and Contract Owners of                                              
LB Variable Annuity Account I                                                   

In our opinion, the accompanying statements of assets and liabilities and       
the related statements of operations and of changes in net assets present       
fairly, in all material respects, the financial position of the                 
Opportunity Growth, Mid Cap Growth, World Growth, Growth, High Yield,           
Income, and Money Market subaccounts of LB Variable Annuity Account I at        
December 31, 2000, the results of each of their operations for the year         
then ended and the changes in each of their net assets for the periods          
indicated, in conformity with accounting principles generally accepted in       
the United States of America. These financial statements are the                
responsibility of Lutheran Brotherhood's management; our responsibility is      
to express an opinion on these financial statements based on our audits.        
We conducted our audits of these financial statements in accordance with        
auditing standards generally accepted in the United States of America           
which require that we plan and perform the audit 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,             
assessing the accounting principles used and significant estimates made by      
management, and evaluating the overall financial statement presentation.        
We believe that our audits provide a reasonable basis for our opinion.          

/s/PricewaterhouseCoopers LLP                                                   

March 30, 2001                                                                  

                                                                [Download Table]


LB VARIABLE ANNUITY ACCOUNT I                                                   
OPPORTUNITY GROWTH SUBACCOUNT                                                   

Financial Statements                                                            

Statement of Assets and Liabilities                                             
December 31, 2000                                                               

                                                                                
ASSETS:                                                                         
Investment in LB Series Fund, Inc. -                                            
Opportunity Growth Portfolio 19,114,679                                         
shares at net asset value of $13.25 per share                                   
(cost $227,933,518)                                               $  253,299,472
Receivable from LB for units issued                                      223,598
Receivable from LB for annuity                                                  
reserve adjustment                                                        18,517
                                                                  --------------
Total assets                                                         253,541,587
                                                                  --------------
LIABILITIES:                                                                    
Payable to LB for mortality and expense                                         
risk charge                                                              215,063
                                                                  --------------
Total liabilities                                                        215,063
                                                                  --------------
NET ASSETS                                                        $  253,326,524
                                                                  ==============
NET ASSETS APPLICABLE TO ANNUITY                                                
CONTRACT OWNERS:                                                                
Contracts in accumulation period, accumulation                                  
units outstanding of 18,990,589                                   $  251,474,140
Reserves for contracts in annuity payment                                       
period (note 2)                                                        1,852,384
                                                                  --------------
NET ASSETS                                                        $  253,326,524
                                                                  ==============
Unit value (accumulation net assets divided by                                  
accumulation units outstanding)                                           $13.24
                                                                          ======


                                                                [Download Table]


Statement of Operations                                
Year Ended December 31, 2000                           

                                                       
INVESTMENT INCOME:                                     
Dividend income                           $         -- 
Mortality and expense risk charge           (2,807,254)
                                          ------------ 
Net investment loss                         (2,807,254)
                                          ------------ 
REALIZED AND UNREALIZED GAIN (LOSS)                    
ON INVESTMENTS:                                        
Net realized gain on investments               492,287 
Net change in unrealized appreciation or               
depreciation of investments                (17,418,537)
                                          ------------ 
Net loss on investments                    (16,926,250)
                                          ------------ 
Net change in net assets resulting                     
from operations                           $ 19,733,504)
                                          ============ 


                                                        [Enlarge/Download Table]


Statement of Changes in Net Assets                                                              
Years Ended December 31, 2000 and 1999                                                          

                                                                        2000          1999      
                                                                    ------------   ------------ 
                                                                                                
INCREASE (DECREASE) IN NET ASSETS:                                                              
OPERATIONS:                                                                                     
Net investment loss                                                 $ (2,807,254)  $ (2,021,917)
Net realized gain (loss) on investments                                  492,287     (1,212,314)
Net change in unrealized appreciation or depreciation                                           
of investments                                                       (17,418,537)    50,974,294 
                                                                    ------------   ------------ 
Net change in net assets resulting from operations                   (19,733,504)    47,740,063 
                                                                    ------------   ------------ 
UNIT TRANSACTIONS:                                                                              
Proceeds from units issued                                            45,712,896    (23,337,051 
Net asset value of units redeemed                                    (15,348,966)   (11,457,977)
Annuity benefit payments                                                (112,667)       (14,939)
Adjustments to annuity reserves                                           10,984          7,508 
Transfers from other subaccounts                                      38,123,647     15,382,879 
Transfers to other subaccounts                                       (29,403,199)   (31,136,784)
Transfers from fixed account                                             223,821        111,778 
Transfers to fixed account                                              (360,340)      (430,309)
                                                                    ------------   ------------ 
Net change in net assets from unit transactions                       38,846,176     (4,200,793)
                                                                    ------------   ------------ 
Net increase in net assets                                            19,112,672     43,539,270 

NET ASSETS:                                                                                     
Beginning of period                                                  234,213,852    190,674,582 
                                                                    ------------   ------------ 
End of period                                                       $253,326,524   $234,213,852 
                                                                    ============   ============ 

The accompanying notes are an integral part of the financial statements.                        


                                                                [Download Table]


LB VARIABLE ANNUITY ACCOUNT I                                                   
MID CAP GROWTH SUBACCOUNT                                                       

Financial Statements                                                            

Statement of Assets and Liabilities                                             
December 31, 2000                                                               

                                                                                
ASSETS:                                                                         
Investment in LB Series Fund, Inc. -                                            
Mid Cap Growth Portfolio  19,138,348                                            
shares at net asset value of $17.62 per share                                   
(cost $284,708,620)                                               $  337,130,761
Receivable from LB for units issued                                      194,100
Receivable from LB for annuity                                                  
reserve adjustment                                                        30,611
                                                                  --------------
Total assets                                                         337,355,472
                                                                  --------------
LIABILITIES:                                                                    
Payable to LB for mortality and expense                                         
risk charge                                                              284,580
                                                                  --------------
Total liabilities                                                        284,580
                                                                  --------------
NET ASSETS                                                          $337,070,892
                                                                  ==============
NET ASSETS APPLICABLE TO ANNUITY                                                
CONTRACT OWNERS:                                                                
Contracts in accumulation period, accumulation                                  
units outstanding of 18,256,799                                   $  334,926,390
Reserves for contracts in annuity payment                                       
period (note 2)                                                        2,144,502
                                                                  --------------
NET ASSETS                                                        $  337,070,892
                                                                  ==============
Unit value (accumulation net assets divided by                                  
accumulation units outstanding)                                           $18.35
                                                                          ======


                                                                [Download Table]


Statement of Operations                                
Year Ended December 31, 2000                           

                                                       
INVESTMENT INCOME:                                     
Dividend income                           $         -- 
Mortality and expense risk charge           (2,880,934)
                                          ------------ 
Net investment loss                         (2,880,934)
                                          ------------ 
REALIZED AND UNREALIZED GAIN (LOSS)                    
ON INVESTMENTS:                                        
Net realized gain on investments            14,537,660 
Net change in unrealized appreciation or               
depreciation of investments                  5,510,848 
                                          ------------ 
Net gain on investments                     20,048,508 
                                          ------------ 
Net increase in net assets resulting                   
from operations                           $ 17,167,574 
                                          ============ 


                                                        [Enlarge/Download Table]


Statement of Changes in Net Assets                                                              
Years Ended December 31, 2000 and 1999                                                          
                                                                        2000          1999      
                                                                    ------------   ------------ 
                                                                                                
INCREASE (DECREASE) IN NET ASSETS:                                                              
OPERATIONS:                                                                                     
Net investment loss                                                 $ (2,880,934)  $   (737,943)
Net realized gain on investments                                      14,537,660          3,500 
Net change in unrealized appreciation or depreciation                                           
of investments                                                         5,510,848     43,748,614 
                                                                    ------------   ------------ 
Net increase in net assets resulting from operations                  17,167,574     43,014,171 
                                                                    ------------   ------------ 
UNIT TRANSACTIONS:                                                                              
Proceeds from units issued                                           102,001,158     37,449,771 
Net asset value of units redeemed                                    (12,451,823)    (4,093,375)
Annuity benefit payments                                                (107,181)       (10,473)
Adjustments to annuity reserves                                           28,776          1,809 
Transfers from other subaccounts                                     110,884,877     31,796,492 
Transfers to other subaccounts                                       (35,089,702)    (8,224,375)
Transfers from fixed account                                             856,589        186,694 
Transfers to fixed account                                              (514,231)      (171,583)
                                                                    ------------   ------------ 
Net increase in net assets from unit transactions                    165,608,463     56,934,960 
                                                                    ------------   ------------ 
Net increase in net assets                                           182,776,037     99,949,131 

NET ASSETS:                                                                                     
Beginning of period                                                  154,294,855     54,345,724 
                                                                    ------------   ------------ 
End of period                                                       $337,070,892   $154,294,855 
                                                                    ============   ============ 

The accompanying notes are an integral part of the financial statements.                        


                                                                [Download Table]


LB VARIABLE ANNUITY ACCOUNT I                                                   
WORLD GROWTH SUBACCOUNT                                                         

Financial Statements                                                            

Statement of Assets and Liabilities                                             
December 31, 2000                                                               

                                                                                
ASSETS:                                                                         
Investment in LB Series Fund, Inc. -                                            
World Growth Portfolio 22,949,409                                               
shares at net asset value of $13.83 per                                         
share (cost $285,908,212)                                         $  317,491,488
Receivable from LB for units issued                                      356,665
Receivable from LB for annuity                                                  
reserve adjustment                                                        40,906
                                                                  --------------
Total assets                                                         317,889,059
                                                                  --------------
LIABILITIES:                                                                    
Payable to LB for mortality and expense                                         
risk charge                                                              272,731
                                                                  --------------
Total liabilities                                                        272,731
                                                                  --------------
NET ASSETS                                                        $  317,616,328
                                                                  ==============
NET ASSETS APPLICABLE TO ANNUITY                                                
CONTRACT OWNERS:                                                                
Contracts in accumulation period, accumulation                                  
units outstanding of 22,301,797                                   $  314,936,892
Reserves for contracts in annuity payment                                       
period (note 2)                                                        2,679,436
                                                                  --------------
NET ASSETS                                                        $  317,616,328
                                                                  ==============
Unit value (accumulation net assets divided by                                  
accumulation units outstanding)                                           $14.12
                                                                          ======


                                                                [Download Table]


Statement of Operations                                
Year Ended December 31, 2000                           

                                                       
INVESTMENT INCOME:                                     
Dividend income                           $         -- 
Mortality and expense risk charge           (3,453,810)
                                          ------------ 
Net investment loss                         (3,453,810)
                                          ------------ 
REALIZED AND UNREALIZED GAIN (LOSS)                    
ON INVESTMENTS:                                        
Net realized gain on investments             8,251,499 
Net change in unrealized appreciation or               
depreciation of investments                (63,915,149)
                                          ------------ 
Net loss on investments                    (55,663,650)
                                          ------------ 
Net change in net assets resulting                     
from operations                           $(59,117,460)
                                          ============ 


                                                        [Enlarge/Download Table]


Statement of Changes in Net Assets                                                              
Years Ended December 31, 2000 and 1999                                                          
                                                                        2000          1999      
                                                                    ------------   ------------ 
                                                                                                
INCREASE (DECREASE) IN NET ASSETS:                                                              
OPERATIONS:                                                                                     
Net investment loss                                                $  (3,453,810)  $ (1,383,194)
Net realized gain on investments                                       8,251,499        223,921 
Net change in unrealized appreciation or depreciation                                           
of investments                                                       (63,915,149)    72,045,298 
                                                                    ------------   ------------ 
Net change in net assets resulting from operations                   (59,117,460)    70,886,025 
                                                                    ------------   ------------ 
UNIT TRANSACTIONS:                                                                              
Proceeds from units issued                                            77,758,113     42,078,005 
Net asset value of units redeemed                                    (17,456,319)   (11,488,678)
Annuity benefit payments                                                (170,248)       (31,844)
Adjustments to annuity reserves                                           23,997         16,834 
Transfers from other subaccounts                                      52,144,547     26,202,412 
Transfers to other subaccounts                                       (31,912,132)   (21,884,797)
Transfers from fixed account                                             367,121        172,561 
Transfers to fixed account                                              (568,160)      (441,198)
                                                                    ------------   ------------ 
Net increase in net assets from unit transactions                     80,186,919     34,623,295 
                                                                    ------------   ------------ 
Net increase in net assets                                            21,069,459    105,509,320 

NET ASSETS:                                                                                     
Beginning of period                                                  296,546,869    191,037,549 
                                                                    ------------   ------------ 
End of period                                                       $317,616,328   $296,546,869 
                                                                    ============   ============ 

The accompanying notes are an integral part of the financial statements.                        


                                                                [Download Table]


LB VARIABLE ANNUITY ACCOUNT I                                                   
GROWTH SUBACCOUNT                                                               

Financial Statements                                                            

Statement of Assets and Liabilities                                             
December 31, 2000                                                               

                                                                                
ASSETS:                                                                         
Investment in LB Series Fund, Inc. -                                            
Growth Portfolio 80,971,645 shares at                                           
net asset value of $24.06 per share                                             
(cost $1,720,512,763)                                            $ 1,948,436,805
Receivable from LB for units issued                                    1,193,064
Receivable from LB for annuity                                                  
reserve adjustment                                                       376,426
                                                                  --------------
Total assets                                                       1,950,006,295
                                                                  --------------
LIABILITIES:                                                                    
Payable to LB for mortality and expense                                         
risk charge                                                            1,708,484
                                                                  --------------
Total liabilities                                                      1,708,484
                                                                  --------------
NET ASSETS                                                        $1,948,297,811
                                                                  ==============
NET ASSETS APPLICABLE TO ANNUITY                                                
CONTRACT OWNERS:                                                                
Contracts in accumulation period, accumulation                                  
units outstanding of 29,904,105                                   $1,928,428,711
Reserves for contracts in annuity payment                                       
period (note 2)                                                       19,869,100
                                                                  --------------
NET ASSETS                                                        $1,948,297,811
                                                                  ==============
Unit value (accumulation net assets divided by                                  
accumulation units outstanding)                                           $64.49
                                                                          ======


                                                                [Download Table]


Statement of Operations                                 
Year Ended December 31, 2000                            

                                                        
INVESTMENT INCOME:                                      
Dividend income                           $   6,235,598 
Mortality and expense risk charge           (22,343,597)
                                          ------------- 
Net investment loss                         (16,107,999)
                                          ------------- 
REALIZED AND UNREALIZED GAIN (LOSS)                     
ON INVESTMENTS:                                         
Net realized gain on investments            323,799,950 
Net change in unrealized appreciation or                
depreciation of investments                (436,636,351)
                                          ------------- 
Net loss on investments                    (112,836,401)
                                          ------------- 
Net change in net assets resulting                      
from operations                           $(128,944,400)
                                          ============= 


                                                        [Enlarge/Download Table]


Statement of Changes in Net Assets                                                                
Years Ended December 31, 2000 and 1999                                                            
                                                                        2000           1999       
                                                                    ------------    ------------  
                                                                                                  

INCREASE (DECREASE) IN NET ASSETS:                                                                
OPERATIONS:                                                                                       
Net investment loss                                               $  (16,107,999)  $   (9,560,212)
Net realized gain on investments                                     323,799,950      125,367,187 
Net change in unrealized appreciation or depreciation                                             
of investments                                                      (436,636,351)     421,735,621 
                                                                  --------------   -------------- 
Net change in net assets resulting from operations                  (128,944,400)     537,542,596 
                                                                  --------------   -------------- 
UNIT TRANSACTIONS:                                                                                
Proceeds from units issued                                           316,384,037      234,152,693 
Net asset value of units redeemed                                   (133,889,195)     (84,660,229)
Annuity benefit payments                                              (1,946,840)        (281,408)
Adjustments to annuity reserves                                          206,723          178,464 
Transfers from other subaccounts                                     190,769,565      142,040,113 
Transfers to other subaccounts                                      (172,514,583)    (115,840,239)
Transfers from fixed account                                           1,870,444        1,790,816 
Transfers to fixed account                                            (5,075,660)      (2,473,185)
                                                                  --------------   -------------- 
Net increase in net assets from unit transactions                    195,804,491      174,907,025 
                                                                  --------------   -------------- 
Net increase in net assets                                            66,860,091      712,449,621 

NET ASSETS:                                                                                       
Beginning of period                                                1,881,437,720    1,168,988,099 
                                                                  --------------   -------------- 
End of period                                                     $1,948,297,811   $1,881,437,720 
                                                                  ==============   ============== 

The accompanying notes are an integral part of the financial statements.                          


                                                                [Download Table]


LB VARIABLE ANNUITY ACCOUNT I                                                   
HIGH YIELD SUBACCOUNT                                                           

Financial Statements                                                            

Statement of Assets and Liabilities                                             
December 31, 2000                                                               

                                                                                
ASSETS:                                                                         
Investment in LB Series Fund, Inc. -                                            
High Yield Portfolio 80,026,734 shares                                          
at net asset value of $6.39 per share                                           
(cost $769,642,432)                                               $  511,659,887
Receivable from LB for units issued                                      131,223
Receivable from LB for annuity                                                  
reserve adjustment                                                       179,817
Dividends receivable from LB Series Fund, Inc.                           383,809
                                                                  --------------
Total assets                                                         512,354,736
                                                                  --------------
LIABILITIES:                                                                    
Payable to LB for mortality and expense                                         
risk charge                                                              446,332
                                                                  --------------
Total liabilities                                                        446,332
                                                                  --------------
NET ASSETS                                                        $  511,908,404
                                                                  ==============
NET ASSETS APPLICABLE TO ANNUITY                                                
CONTRACT OWNERS:                                                                
Contracts in accumulation period, accumulation                                  
units outstanding of 21,986,419                                   $  506,041,872
Reserves for contracts in annuity payment                                       
period (note 2)                                                        5,866,532
                                                                  --------------
NET ASSETS                                                        $  511,908,404
                                                                  ==============
Unit value (accumulation net assets divided by                                  
accumulation units outstanding)                                           $23.02
                                                                          ======


                                                                [Download Table]


Statement of Operations                                 
Year Ended December 31, 2000                            

                                                        
INVESTMENT INCOME:                                      
Dividend income                           $  74,204,441 
Mortality and expense risk charge            (6,688,336)
                                          ------------- 
Net investment income                        67,516,105 
                                          ------------- 
REALIZED AND UNREALIZED GAIN (LOSS)                     
ON INVESTMENTS                                          
Net realized loss on investments             (4,187,567)
Net change in unrealized appreciation or                
depreciation of investments                (202,162,776)
                                          ------------- 
Net loss on investments                    (206,350,343)
                                          ------------- 
Net change in net assets resulting                      
from operations                           $(138,834,238)
                                          ============= 


                                                        [Enlarge/Download Table]


Statement of Changes in Net Assets                                                              
Years Ended December 31, 2000 and 1999                                                          
                                                                        2000          1999      
                                                                    ------------   ------------ 
                                                                                                

INCREASE (DECREASE) IN NET ASSETS:                                                              
OPERATIONS:                                                                                     
Net investment income                                               $ 67,516,105   $ 56,575,304 
Net realized loss on investments                                      (4,187,567)    (1,189,514)
Net change in unrealized appreciation or depreciation                                           
of investments                                                      (202,162,776)    (3,504,390)
                                                                    ------------   ------------ 
Net change in net assets resulting from operations                  (138,834,238)    51,881,400 
                                                                    ------------   ------------ 
UNIT TRANSACTIONS:                                                                              
Proceeds from units issued                                            99,715,061     94,559,182 
Net asset value of units redeemed                                    (47,807,940)   (39,481,058)
Annuity benefit payments                                                (587,765)      (131,842)
Adjustments to annuity reserves                                          107,607         69,914 
Transfers from other subaccounts                                      49,524,964     40,049,692 
Transfers to other subaccounts                                       (77,376,487)   (58,280,487)
Transfers from fixed account                                             492,827        577,925 
Transfers to fixed account                                            (2,832,983)    (1,831,775)
                                                                    ------------   ------------ 
Net increase in net assets from unit transactions                     21,235,284     35,531,551 
                                                                    ------------   ------------ 
Net change in net assets                                            (117,598,954)    87,412,951 

NET ASSETS:                                                                                     
Beginning of period                                                  629,507,358    542,094,407 
                                                                    ------------   ------------ 
End of period                                                       $511,908,404   $629,507,358 
                                                                    ============   ============ 

The accompanying notes are an integral part of the financial statements.                        


                                                                [Download Table]


LB VARIABLE ANNUITY ACCOUNT I                                                   
INCOME SUBACCOUNT                                                               

Financial Statements                                                            

Statement of Assets and Liabilities                                             
December 31, 2000                                                               

                                                                                
ASSETS:                                                                         
Investment in LB Series Fund, Inc. -                                            
Income Portfolio 46,928,524 shares                                              
at net asset value of $9.71 per share                                           
(cost $458,312,111)                                               $  455,528,673
Receivable from LB for units issued                                      282,398
Receivable from LB for annuity                                                  
reserve adjustment                                                        93,276
Dividends receivable from LB Series Fund, Inc.                           157,159
                                                                  --------------
Total assets                                                         456,061,506
                                                                  --------------
LIABILITIES:                                                                    
Payable to LB for mortality and expense                                         
risk charge                                                              393,832
                                                                  --------------
Total liabilities                                                        393,832
                                                                  --------------
NET ASSETS                                                        $  455,667,674
                                                                  ==============
NET ASSETS APPLICABLE TO ANNUITY                                                
CONTRACT OWNERS:                                                                
Contracts in accumulation period, accumulation                                  
units outstanding of 18,874,587                                   $  450,801,210
Reserves for contracts in annuity payment                                       
period (note 2)                                                        4,866,464
                                                                  --------------
NET ASSETS                                                        $  455,667,674
                                                                  ==============
Unit value (accumulation net assets divided by                                  
accumulation units outstanding)                                           $23.88
                                                                          ======


                                                                [Download Table]


Statement of Operations                                
Year Ended December 31, 2000                           

                                                       
INVESTMENT INCOME:                                     
Dividend income                           $ 28,716,233 
Mortality and expense risk charge           (4,606,351)
                                          ------------ 
Net investment income                       24,109,882 
                                          ------------ 
REALIZED AND UNREALIZED GAIN (LOSS)                    
ON INVESTMENTS:                                        
Net realized loss on investments              (881,057)
Net change in unrealized appreciation or               
depreciation of investments                 14,451,270 
                                          ------------ 
Net gain on investments                     13,570,213 
                                          ------------ 
Net increase in net assets resulting                   
from operations                           $ 37,680,095 
                                          ============ 


                                                        [Enlarge/Download Table]


Statement of Changes in Net Assets                                                              
Years Ended December 31, 2000 and 1999                                                          
                                                                        2000          1999      
                                                                    ------------   ------------ 
                                                                                                
INCREASE (DECREASE) IN NET ASSETS:                                                              
OPERATIONS:                                                                                     
Net investment income                                               $ 24,109,882   $ 19,858,606 
Net realized loss on investments                                        (881,057)      (201,849)
Net change in unrealized appreciation or depreciation                                           
of investments                                                        14,451,270    (32,049,840)
                                                                    ------------   ------------ 
Net change in assets resulting from operations                        37,680,095    (12,393,083)
                                                                    ------------   ------------ 
UNIT TRANSACTIONS:                                                                              
Proceeds from units issued                                            63,980,805     85,649,280 
Net asset value of units redeemed                                    (36,217,784)   (29,820,188)
Annuity benefit payments                                                (302,284)       (94,180)
Adjustments to annuity reserves                                           59,252         37,874 
Transfers from other subaccounts                                      37,365,577     40,731,290 
Transfers to other subaccounts                                       (55,167,174)   (42,833,559)
Transfers from fixed account                                             469,714        519,532 
Transfers to fixed account                                            (2,971,832)    (1,774,223)
                                                                    ------------   ------------ 
Net increase in net assets from unit transactions                      7,216,274     52,415,826 
                                                                    ------------   ------------ 
Net increase in net assets                                            44,896,369     40,022,743 

NET ASSETS:                                                                                     
Beginning of pe                                                      410,771,305    370,748,562 
                                                                    ------------   ------------ 
End of period                                                       $455,667,674   $410,771,305 
                                                                    ============   ============ 

The accompanying notes are an integral part of the financial statements.                        


                                                                [Download Table]


LB VARIABLE ANNUITY ACCOUNT I                                                   
MONEY MARKET SUBACCOUNT                                                         

Financial Statements                                                            

Statement of Assets and Liabilities                                             
December 31, 2000                                                               

                                                                                
ASSETS:                                                                         
Investment in LB Series Fund, Inc. -                                            
Money Market Portfolio 153,335,461                                              
shares at net asset value of $1.00 per share                                    
(cost $153,335,461)                                               $  153,335,461
Receivable from LB for units issued                                      324,383
Receivable from LB for annuity                                                  
reserve adjustment                                                        26,520
Dividends receivable from LB Series Fund, Inc.                            52,532
                                                                  --------------
Total assets                                                         153,738,896
                                                                  --------------
LIABILITIES:                                                                    
Payable to LB for mortality and expense                                         
risk charge                                                              133,049
                                                                  --------------
Total liabilities                                                        133,049
                                                                  --------------
NET ASSETS                                                        $  153,605,847
                                                                  ==============
NET ASSETS APPLICABLE TO ANNUITY                                                
CONTRACT OWNERS:                                                                
Contracts in accumulation period, accumulation                                  
units outstanding of 86,928,411                                   $  152,713,917
Reserves for contracts in annuity payment                                       
period (note 2)                                                          891,930
                                                                  --------------
NET ASSETS                                                        $  153,605,847
                                                                  ==============
Unit value (accumulation net assets divided by                                  
accumulation units outstanding)                                            $1.76
                                                                          ======


                                                                [Download Table]


Statement of Operations                         
Year Ended December 31, 2000                    

                                                
INVESTMENT INCOME:                              
Dividend income                    $  8,501,124 
Mortality and expense risk charge    (1,543,474)
                                   ------------ 
Net investment income              $  6,957,650 
                                   ============ 


                                                        [Enlarge/Download Table]


Statement of Changes in Net Assets                                                              
Years Ended December 31, 2000 and 1999                                                          
                                                                        2000          1999      
                                                                    ------------   ------------ 
                                                                                                
INCREASE (DECREASE) IN NET ASSETS:                                                              
OPERATIONS:                                                                                     
Net investment income                                               $  6,957,650   $  4,342,228 
                                                                    ------------   ------------ 
UNIT TRANSACTIONS:                                                                              
Proceeds from units issued                                            98,437,487     81,935,028 
Net asset value of units redeemed                                    (18,004,362)   (11,181,624)
Annuity benefit payments                                                 (59,294)       (11,388)
Adjustments to annuity reserves                                           22,570          3,849 
Transfers from other subaccounts                                      89,143,281     77,970,675 
Transfers to other subaccounts                                      (166,128,110)   (95,774,018)
Transfers from fixed account                                           4,673,849      1,162,008 
Transfers to fixed account                                            (9,703,345)    (2,330,427)
                                                                    ------------   ------------ 
Net change in net assets from unit transactions                       (1,617,924)    51,774,103 
                                                                    ------------   ------------ 
Net increase in net assets                                             5,339,726     56,116,331 

NET ASSETS:                                                                                     
Beginning of period                                                  148,266,121     92,149,790 
                                                                    ------------   ------------ 
End of period                                                       $153,605,847   $148,266,121 
                                                                    ============   ============ 

The accompanying notes are an integral part of the financial statements.                        


LB VARIABLE ANNUITY ACCOUNT I                                                   
Notes to Financial Statements                                                   
December 31, 2000                                                               

(1) ORGANIZATION                                                                

The LB Variable Annuity Account I (the Variable Account), is registered         
as a unit investment trust under the Investment Company Act of 1940, and        
is a separate account of Lutheran Brotherhood (LB). LB offers financial         
services to Lutherans and is a fraternal benefit society owned by and           
operated for its members. The Variable Account contains seven                   
subaccounts -- Opportunity Growth, Mid Cap Growth, World Growth,                
Growth, High Yield, Income and Money Market -- each of which invests            
in a corresponding portfolio of the LB Series Fund, Inc. (the Fund).            
The Fund is registered under the Investment Company Act of 1940 as a            
diversified open-end investment company.                                        

The Variable Account is used to fund only flexible premium deferred             
variable annuity contracts issued by LB. Under applicable insurance law,        
the assets and liabilities of the Variable Account are clearly                  
identified and distinguished from the other assets and liabilities of           
LB. The assets of the Variable Account will not be charged with any             
liabilities arising out of any other business conducted by LB.                  

(2) SIGNIFICANT ACCOUNTING POLICIES                                             

Investments                                                                     

The investments in shares of the Fund are stated at the net asset value         
of the Fund. The cost of shares sold and redeemed is determined on the          
average cost method. Dividend distributions received from the Fund are          
reinvested in additional shares of the Fund and recorded as income by           
the Variable Account on the ex-dividend date.                                   

Federal Income Taxes                                                            

LB qualifies as a tax-exempt organization under the Internal Revenue            
Code. Accordingly, no provision for income taxes has been charged               
against the Variable Account. LB reserves the right to charge for               
taxes in the future.                                                            

Annuity Reserves                                                                

Annuity reserves are computed for currently payable contracts according         
to the 1983 Table A mortality table and the 2000 IAM mortality table.           
The assumed interest is 3.5 percent. Changes to annuity reserves are            
based on actual mortality and risk experience. If the reserves required         
are less than the original estimated reserve amount held in the Variable        
Account, the excess is reimbursed to LB. If additional reserves are             
required, LB reimburses the Variable Account.                                   

Other                                                                           

The preparation of financial statements in conformity with accounting           
principles generally accepted in the United States of America requires          
management to make estimates and assumptions that affect the reported           
amounts of assets and liabilities and disclosure of contingent assets           
and liabilities at the date of the financial statements and the                 
reported amounts of income and expenses during the reporting period.            
Actual results could differ from those estimates.                               

(3) RELATED PARTY TRANSACTIONS                                                  

Proceeds received by the Variable Account for units issued represent            
gross contract premiums received by LB. No charge for sales distribution        
expense is deducted from premiums received.                                     

A surrender charge is deducted by LB if a contract is surrendered in            
whole or in part during the first six years the contract is in force.           
The surrender charge is 6% during the first contract year, and decreases        
by 1% each subsequent contract year. For purposes of the surrender              
charge calculation, up to 10% of a contract's accumulated value may be          
excluded from the calculation each year. Surrender charges of $2,548,133        
and $2,145,939 were deducted in 2000 and 1999, respectively.                    

An annual administrative charge of $30 is deducted on each contract             
anniversary from the accumulated value of the contract to compensate LB         
for administrative expenses relating to the contract and the Variable           
Account. This charge is deducted by redeeming units of the subaccounts          
of the Variable Account. No such charge is deducted from contracts for          
which total premiums paid, less surrenders, equals or exceeds $5,000. No        
administrative charge is payable during the annuity period.                     
Administrative charges of $399,546 and $404,492 were deducted in 2000           
and 1999, respectively.                                                         

A daily charge is deducted from the value of the net assets of the              
Variable Account to compensate LB for mortality and expense risks               
assumed in connection with the contract and is equivalent to an annual          
rate of 1.1% of the average daily net assets of the Variable Account.           
Mortality and expense risk charges of $44,323,843 and $33,343,836 were          
deducted in 2000 and 1999, respectively.                                        

A fixed account investment option is available for Contract Owners of           
the flexible premium deferred variable annuity. Assets of the fixed             
account are combined with the general assets of LB and invested by LB as        
allowed by applicable law. Accordingly, the fixed account assets are not        
included in the Variable Account financial statements. The asset value          
of net transfers from(to) the fixed account was ($13,072,186) and               
($4,931,386) in 2000 and 1999, respectively.                                    

                                                        [Enlarge/Download Table]
CAPTION>                                                                                                              

(4) UNIT ACTIVITY                                                                                                     

Transactions in units (including transfers among subaccounts) were as follows:                                        

                                                                 Subaccounts                                          
                     ------------------------------------------------------------------------------------------------ 
                      Opportunity     Mid Cap        World                        High                       Money    
                        Growth         Growth        Growth        Growth        Yield         Income        Market   
                      -----------   -----------   -----------   -----------   -----------   -----------   ----------- 
                                                                                                                      
Units outstanding at                                                                                                  
December 31, 1998      16,883,494     4,916,782    14,890,293    24,210,985    20,236,846    16,424,298    57,199,273 
Units issued            3,649,404     5,672,985     5,191,205     7,137,291     4,950,637     5,899,355   100,610,535 
Units redeemed         (4,132,274)   (1,181,927)   (2,722,206)   (4,047,786)   (3,804,092)   (3,632,780)  (69,314,947)
                      -----------   -----------   -----------   -----------   -----------   -----------   ----------- 

Units outstanding at                                                                                                  
December 31, 1999      16,400,624     9,407,840    17,359,292    27,300,490    21,383,391    18,690,873    88,494,861 
Units issued            5,953,840    11,749,504     8,437,919     7,360,398     5,487,037     4,636,537   114,340,246 
Units redeemed         (3,363,875)   (2,900,545)   (3,495,414)   (4,756,783)   (4,884,009)   (4,452,823) (115,906,696)
                      -----------   -----------   -----------   -----------   -----------   -----------   ----------- 

Units outstanding at                                                                                                  
December 31, 2000      18,990,589    18,256,799    22,301,797    29,904,105    21,986,419    18,874,587    86,928,411 
                      ===========   ===========   ===========   ===========   ===========   ===========   =========== 


                                                        [Enlarge/Download Table]


(5) PURCHASES AND SALES OF INVESTMENTS                                                                               

The aggregate costs of purchases and proceeds from sales of investments in the LB Series Fund, Inc. were as follows: 

                                                                 Subaccounts                                         
                     ------------------------------------------------------------------------------------------------
                      Opportunity     Mid Cap        World                        High                       Money   
                        Growth         Growth        Growth        Growth        Yield         Income        Market  
                      -----------   -----------   -----------   -----------   -----------   -----------   -----------
                                                                                                                     
For the year ended                                                                                                   
December 31, 1999                                                                                                    
Purchases              $7,618,057   $55,794,536   $34,949,471  $303,505,898  $105,466,991   $81,076,876   $76,494,112
Sales                  14,043,622        46,516     1,545,286    14,009,231    12,530,900     7,976,919    20,288,111
For the year ended                                                                                                   
December 31, 2000                                                                                                    
Purchases              39,322,547   178,314,167    86,410,688   519,310,445   106,727,852    52,490,500    55,468,874
Sales                   3,137,307       209,846     1,715,849    20,855,278    18,356,394    21,381,691    49,555,022


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COMMENTS ON FINANCIAL STATEMENTS OF LB    

The financial statements of LB included in this Statement of Additional         
Information should be considered as bearing only upon the ability of LB to      
meet its obligations under the Contracts.  The value of the interests of        
Contract Owners, Annuitants and Beneficiaries under the Contracts are           
affected primarily by the investment experience of the Subaccounts of the       
Variable Account.  The financial statements of LB should not be considered      
as bearing on the investment performance of the assets held in the Variable     
Account.                                                                        

FINANCIAL STATEMENTS OF LB

Set forth on the following pages are the audited financial statements of LB.    

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Lutheran Brotherhood                                                            
Consolidated Financial Statements                                               
December 31, 2000 and 1999                                                      

Report of Independent Accountants                                               

To the Board of Directors and Members of                                        
Lutheran Brotherhood:                                                           

In our opinion, the accompanying consolidated balance sheet and the related     
consolidated statements of income, of members' equity and of cash flows         
present fairly, in all material respects, the financial position of Lutheran    
Brotherhood (the Society) and its subsidiaries at December 31, 2000 and         
1999, and the results of their operations and their cash flows for each of      
the three years in the period ended December 31, 2000 in conformity with        
accounting principles generally accepted in the United States of America.       
These financial statements are the responsibility of the Society's              
management; our responsibility is to express an opinion on these financial      
statements based on our audits.  We conducted our audits of these statements    
in accordance with auditing standards generally accepted in the United          
States of America, which require that we plan and perform the audit 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,    
assessing the accounting principles used and significant estimates made by      
management, and evaluating the overall financial statement presentation.  We    
believe that our audits provide a reasonable basis for our opinion.             

/s/ PriceWaterhouseCoopers LLP                                                  
PriceWaterhouseCoopers LLP                                                      

March 16, 2001                                                                  

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Lutheran Brotherhood                                                            
Consolidated Balance Sheet                                                      
(December 31, 2000 and 1999)                                                    
(Dollars in millions)                                                           

                   Assets                               2000      1999

Investments:                                                                    
Fixed income securities available for                                       
sale, at fair value                                    $ 7,374   $ 6,975
Equity securities available for sale,                                       
at fair value                                              722       893
Mortgage loans                                               2,236     2,102    
Real estate                                                     65        63    
Loans to contractholders                                       748       721    
Short-term investments                                         290       208    
Amounts due from brokers                                         7       346    
Other invested assets                                          216       122    
                                                       -------   -------

Total investments                                       11,658    11,430

Cash and cash equivalents                                      749     1,001    
Deferred policy acquisition costs                            1,181     1,159    
Investment income due and accrued                              137       133    
Other assets                                                   156       167    
Separate account assets                                      8,842     9,059    
                                                       -------   -------

Total assets                                           $22,723   $22,949
                                                       =======   =======

Liabilities and Members' Equity                     

Liabilities:                                                                    
Contract reserves                                        $ 5,988   $ 5,551  
Contractholder funds                                       4,484     4,539  
Benefits in the process of payment                            63        60  
Dividends payable                                            117       111  
Amounts due to brokers                                       413     1,012  
Other liabilities                                            364       313  
Separate account liabilities                               8,842     9,059  
                                                       -------   -------

Total liabilities                                       20,271    20,645
                                                       -------   -------

Members' equity:                                                                
Accumulated other comprehensive income                        36        16  
Retained earnings                                          2,416     2,288  
                                                       -------   -------

Total members' equity                                    2,452     2,304
                                                       -------   -------

Total liabilities and members' equity                  $22,723   $22,949
                                                       =======   =======

The accompanying notes are an integral part of these consolidated financial     
statements.                                                                     

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Lutheran Brotherhood                                                            
Consolidated Statement of Income                                                
For the years ended December 31, 2000, 1999 and 1998                            
(Dollars in millions)                                                           

                                            2000      1999      1998

Revenues:                                                                       
Premiums                                       $  585    $  553    $  504   
Net investment income                             799       748       735   
Net realized investment gains                      16        87       126   
Contract charges                                  211       189       169   
Annuity considerations and other income           211       176       159   
                                            ------    ------    ------

Total revenues                                1,822     1,753      1,693

Benefits and other deductions:                                                  
Net additions to contract reserves                462       420        377  
Contractholder benefits                           643       612        597  
Dividends                                         230       217        198  
Commissions and operating expenses                223       213        176  
Amortization of deferred policy                                             
acquisition costs                                48        66        101
Fraternal activities                               79        77         66  
                                             ------    ------     ------

Total benefits and other deductions           1,685     1,605      1,515
                                             ------    ------     ------

Income before income taxes                          137       148        178    

Provision for income taxes                            9         1          5    
                                             ------    ------     ------

Net income                                       $  128    $  147     $  173    
                                             ======    ======     ======

The accompanying notes are an integral part of these consolidated financial     
statements.                                                                     

                                                        [Enlarge/Download Table]

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Lutheran Brotherhood                                                                                              
Consolidated Statement of Members' Equity                                                                         
For the years ended December 31, 2000, 1999 and 1998                                                              
(Dollars in millions)                                                                                             


                                                                 Accumulated Other                                
                                                            Comprehensive Income (Loss)                           
                                                           ----------------------------                           
                                                                          Unrealized                              
                                                            Unrealized    Gains/Losses                 Total      
                                            Comprehensive  Gains/Losses   Acquisition    Retained     Members'    
                                                Income      Investments      Costs       Earnings      Equity     
                                                                                                                  
Balance at December 31, 1997                                  $  373        $  (96)       $1,968       $2,245     
Comprehensive income:                                                                                             
  Net income                                    $  173             -             -           173          173     
  Other comprehensive income (loss)                 92           106           (14)            -           92     
                                                ------        ------        ------        ------       ------     

    Total comprehensive income                  $  265                                                            
                                                ======                                                            

Balance at December 31, 1998                                         479          (110)        2,141        2,510 
Comprehensive income:                                                                                             
  Net income                                    $  147             -             -           147          147     
  Other comprehensive income     (loss)               (353)         (527)          174             -         (353)
                                                ------        ------        ------        ------       ------     

    Total comprehensive income                  $ (206)                                                           
                                                ======                                                            

Balance at December 31, 1999                                     (48)           64         2,288        2,304     
Comprehensive income:                                                                                             
  Net income                                    $  128             -             -           128          128     
  Other comprehensive income (loss)                 20            96           (76)            -           20     
                                                ------        ------        ------        ------       ------     

    Total comprehensive income                  $  148                                                            
                                                ======                                                            

Balance at December 31, 2000                                      $   48        $  (12)       $2,416       $2,452 
                                                              ======        ======        ======       ======     

The accompanying notes are an integral part of these consolidated financial statements.                           

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Lutheran Brotherhood                                                            
Consolidated Statement of Cash Flows                                            
For the years ended December 31, 2000, 1999 and 1998                            
(Dollars in millions)                                                           

                                      2000        1999        1998

Cash flows from operating activities:                                           
Net income                               $    128    $    147    $    173   
Adjustments to reconcile net                                                
income to net cash provided                                             
by operating activities:                                                
Depreciation and amortization                 10           3           3  
Deferred policy acquisition costs            (98)        (64)        (32) 
Equity in earnings of other                                               
invested assets                             (8)         (5)          8
Net realized investment gains                (16)        (87)       (126) 
Change in operating assets and liabilities:                                 
Loans to contractholders                     (27)        (22)        (18) 
Other assets                                 (31)        (58)        (10) 
Contract reserves and contractholder funds   382         371         168  
Other liabilities                             63          73          29  
                                      --------    --------    --------

Total adjustments                           275         211          22 
                                      --------    --------    --------

Net cash provided by operating activities   403         358         195 
                                      --------    --------    --------

Cash flows from investing activities:                                           
Proceeds from investments sold,                                             
matured or repaid:                                                      
Fixed income securities available                                         
for sale                                 7,252       9,768      11,122
Equity securities available for sale         430         564       1,125  
Mortgage loans                               184         228         520  
Short-term investments                       523         799         466  
Other invested assets                        376         133          28  
Costs of investments acquired                                               
Fixed income securities available                                         
 for sale                                (8,076)     (9,869)    (10,981)
Equity securities available for sale        (320)       (514)     (1,144) 
Mortgage loans                              (317)       (358)       (221) 
Short-term investments                      (598)       (599)       (660) 
Other invested assets                       (109)        (64)       (448) 
                                        --------    --------    --------

Net cash (used in) provided by                                          
  investing activities                     (655)         88        (193)
                                        --------    --------    --------

Net (decrease) increase in cash and                                             
cash equivalents                             (252)        446           2   

Cash and cash equivalents, beginning                                            
of year                                     1,001         555         553   
                                      --------    --------    --------

Cash and cash equivalents, end of year     $    749    $  1,001    $    555     
                                      ========    ========    ========

The accompanying notes are an integral part of these consolidated financial     
statements.                                                                     

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Lutheran Brotherhood                                                            
Notes to Consolidated Financial Statements                                      
(Dollars in millions)                                                           

1.   ORGANIZATION AND BASIS OF PRESENTATION                                     

Nature of Operations and Principles of Consolidation                  
 The accompanying consolidated financial statements include the accounts
 of Lutheran Brotherhood (the Society), a fraternal benefit organization
offering life insurance and related financial service products as well
 as fraternal benefits for Lutherans throughout the United States.  Also
included in the accounts of the Society are its wholly owned          
 subsidiary, Lutheran Brotherhood Financial Corporation (LBFC), which is
the parent company of Lutheran Brotherhood Variable Insurance Products
 Company (LBVIP), a stock life insurance company; an investment adviser;
a broker-dealer; a property and casualty insurance agency; a federal  
savings bank holding company; and a federal savings bank.  All        
 significant intercompany balances and transactions have been eliminated
in consolidation.                                                     

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                 

Use of Estimates                                                      
The preparation of financial statements in conformity with accounting 
principles generally accepted in the United States of America requires
management to make certain estimates and assumptions that affect the  
 reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the reporting period. 
Actual results could differ from those estimates.                     

Financial Statement Presentation                                      
 Certain prior year amounts in the financial statements and notes to the
financial statements have been reclassified to conform to the 2000    
financial statement presentation.                                     

Cash and Cash Equivalents                                             
Cash and cash equivalents include cash on hand, money market          
instruments and other debt issues with an original maturity of 90 days
or less.                                                              

Investments                                                           
See disclosures regarding the determination of fair value of financial
instruments at Note 10.                                               

Carrying value of investments is determined as follows:               

Fixed income securities               Fair value                  
Equity securities                     Fair value                  
  Mortgage loans on real estate         Amortized cost less impairment
                       allowance
Investment real estate                Cost less accumulated       
                                         depreciation and impairment
                       allowance
Real estate joint ventures            Equity accounting method    
Real estate acquired through          Lower of cost or fair value 
   foreclosure                           less estimated cost to sell
Loans to contractholders              Unpaid principal balance    
Short-term investments                Amortized cost              
Other invested assets                 Equity accounting method    

Fixed income securities which may be sold prior to maturity and equity
securities (common stock and nonredeemable preferred stock) are       
classified as available for sale.                                     

Realized investment gains and losses on sales of securities are       
determined on a first-in, first-out method for fixed income securities
and the average cost method for equity securities and are reported in 
the Consolidated Statement of Income.  Unrealized investment gains and
losses on fixed income and equity securities classified as available  
for sale, net of the impact of unrealized investment gains and losses 
on deferred acquisition costs, are reported as other comprehensive    
income.                                                               

Mortgage loans are considered impaired when it is probable that the   
Society will be unable to collect all amounts according to the        
contractual terms of the loan agreement.  Real estate is considered   
impaired when the carrying value exceeds the fair value.  In cases    
where impairment is present, valuation allowances are established and 
netted against the asset categories to which they apply and changes in
the valuation allowances are included in realized investment gains or 
losses.                                                               

Deferred Policy Acquisition Costs                                     
Those costs of acquiring new business, which vary with and are        
primarily related to the production of new business, are deferred.    
Such costs include commissions, certain costs of contract issuance and
underwriting, and certain variable agency expenses.  Deferred policy  
acquisition costs are subject to recoverability testing at the time of
contract issue and loss recognition testing at the end of each        
accounting period.  Deferred policy acquisition costs are adjusted for
the impact of unrealized gains or losses on investments as if those   
gains or losses had been realized, with corresponding credits or      
charges included in equity.                                           

For participating-type long duration contracts, deferred acquisition  
costs are amortized over the expected average life of the contracts in
proportion to estimated gross margins.  The effects of revisions to   
experience on previous amortization of deferred acquisition costs are 
reflected in earnings and change in unrealized investment gains       
(losses) in the period estimated gross margins are revised.           

For universal life-type and investment-type contracts, deferred       
acquisition costs are amortized over the average expected life of the 
contracts in proportion to estimated gross profits from mortality,    
investment, and expense margins and surrender charges.  The effects of
revisions to experience on previous amortization of deferred          
acquisition costs are reflected in earnings and change in unrealized  
investment gains (losses) in the period estimated gross profits are   
revised.                                                              

For health insurance and certain term life insurance contracts,       
deferred acquisition costs are amortized over the average expected    
premium paying period, in proportion to expected premium revenues at  
the time of issue.                                                    

Separate Accounts                                                     
Separate account assets include segregated funds invested by the      
 Society for the benefit of variable life insurance and variable annuity
contract owners.  The assets (principally investments) and liabilities
(principally to contractholders) of each account are clearly          
identifiable and distinguishable from other assets and liabilities of 
the Society.  Assets are valued at fair value.  The investment income,
gains and losses of these accounts generally accrue to the            
contractholders, and, therefore, are not included in the Society's    
consolidated net income.                                              

Derivative Financial Instruments                                      
The Society's current utilization of derivative financial instruments 
is not significant.  Most of the Society's derivative transactions are
used to reduce or modify interest rate risk and to replicate assets in
certain markets.  These strategies use future contracts, option       
contracts, interest rate swaps and structured securities.  The Society
does not use derivative instruments for speculative purposes.  Changes
in the market value of these contracts are deferred and realized upon 
disposal of the hedged assets.  The effect of derivative transactions 
is not significant to the Society's results from operations or        
financial position.                                                   

Effective January 1, 2001, the Society adopted the provisions of      
Statement of Financial Accounting Standards No. 133, "Accounting for  
Derivative Instruments and Hedging Activities" (SFAS No. 133), as     
amended.  Given the Society's limited use of derivative instruments,  
the adoption of SFAS No. 133 did not have a significant impact on the 
financial position or results of operations of the Society.           

Other Assets                                                          
Other assets include property and equipment reported at depreciated   
cost.  The Society provides for depreciation of property and equipment
using the straight-line method over the useful lives of the assets    
which are three to ten years for equipment and forty years for        
property.                                                             

Contract Reserves and Contractholder Funds                            
Liabilities for future contract benefits on participating-type long   
duration contracts are the net level premium reserve for death        
benefits.  Liabilities are calculated using dividend fund interest    
rates and mortality rates guaranteed in calculating cash surrender    
values.                                                               

Liabilities for future contract benefits on universal life-type and   
investment-type contracts are based on the contract account balance.  

Liabilities for future contract benefits on health insurance and      
certain term life insurance contracts are calculated using the net    
level premium method and assumptions as to investment yields,         
mortality, morbidity and withdrawals.  The assumptions, made at the   
time of issue, are based on best estimates of expected experience and 
include provision for possible adverse deviation.                     

Liabilities for future contract benefits on limited-payment contracts 
are determined using appropriate assumptions for investment yields,   
mortality, morbidity and expenses, including a provision for the risk 
of adverse deviation.                                                 

 Use of these actuarial tables and methods involves estimation of future
mortality and morbidity based on past experience.  Actual future      
experience could differ from these estimates.                         

Premium Revenue and Benefits to Contractholders                       
 Recognition of Certain Participating-Type Contract Revenue and Benefits
to Contractholders                                                    

Participating-type contracts are long-duration contracts with expected
dividends to contractholders based on actual experience, paid in      
proportion to the contractholder's contribution to surplus.  Premiums 
are recognized as revenues when due.  Death and surrender benefits are
 reported as expenses when incurred.  Dividends to contractholders based
on estimates of amounts to be paid for the period are reported        
separately as expenses.                                               

Recognition of Universal Life-Type Contract Revenue and Benefits to   
Contractholders                                                   

Universal life-type contracts are insurance contracts with terms that 
are not fixed and guaranteed.  The terms that may be changed could    
include one or more of the amounts assessed the contractholder,       
premiums paid by the contractholder or interest accrued to            
contractholder balances.  Amounts received as payments for such       
contracts are not reported as premium revenues.                       

Revenues for universal life-type contracts consist of investment      
income, charges assessed against contract account values for deferred 
contract loading, the cost of insurance and contract administration.  
Contract benefits and claims that are charged to expense include      
interest credited to contracts and benefit claims incurred in the     
period in excess of related contract account balances.                

Recognition of Investment Contract Revenue and Benefits to            
Contractholders                                                   

Contracts that do not subject the Society to risks arising from       
contractholder mortality or morbidity are referred to as investment   
contracts.  Certain deferred annuities, immediate annuities and       
supplementary contracts are considered investment contracts.  Amounts 
received as payments for such contracts are not reported as premium   
revenues.                                                             

Revenues for investment contracts consist of investment income and    
 contract administration charges.  Contract benefits that are charged to
expense include benefit claims incurred in the period in excess of    
related contract balances, and interest credited to contract balances.

Recognition of Limited-Payment Contract Revenue and Benefits to       
Contractholders                                                   

Limited-payment contracts subject the Society to contractholder       
mortality and morbidity risks over a period that extends beyond the   
premium paying period.  Certain annuities and supplementary contracts 
with life contingencies are considered limited-payment contracts.     
Considerations are recognized as revenue when due.  Benefits and      
expenses are associated with earned premiums so as to result in       
recognition of profits over the life of the contracts.  This          
association is accomplished by means of the provision for liabilities 
for future contract benefits and the amortization of deferred policy  
acquisition costs.                                                    

Recognition of Term Life and Health Revenue and Benefits to           
Contractholders                                                   

Products with fixed and guaranteed premiums and benefits consist      
principally of health insurance contracts and certain term life       
contracts.  Premiums are recognized as revenue when due.  Benefits and
expenses are associated with earned premiums so as to result in       
recognition of profits over the life of the contracts.  This          
association is accomplished by means of the provision for liabilities 
for future contract benefits and the amortization of deferred policy  
acquisition costs.                                                    

Dividends                                                             
The dividend scale, approved annually by the Board of Directors, seeks
to achieve equity among contractholders.  Dividends charged to        
 operations represent an estimation of those incurred during the current
year.                                                                 

Income Taxes                                                          
Lutheran Brotherhood qualifies as a tax-exempt organization under the 
Internal Revenue Code.  Accordingly, no provision for income taxes has
been made.  Lutheran Brotherhood's subsidiary, Lutheran Brotherhood   
Financial Corporation (LBFC) is a taxable entity.  LBFC and its       
subsidiaries file a consolidated federal income tax return.  Federal  
income taxes are charged or credited to operations based upon amounts 
estimated to be payable or recoverable as a result of taxable         
operations for the current year.  Deferred income tax assets and      
liabilities are recognized based on the temporary differences between 
 financial statement carrying amounts and income tax bases of assets and
liabilities using enacted income tax rates and laws.                  

The provision for income taxes reflected on the Consolidated Statement
of Income consisted of federal and state income tax expense of $9, $1 
and $5 for the years ended December 31, 2000, 1999 and 1998,          
respectively.  At December 31, 2000 and 1999, LBFC had recorded a net 
deferred federal income tax liability of $41 and $29, respectively.   
The deferred tax liability is mainly due to the net effect of the     
 temporary differences of reserves held for future benefits and deferred
acquisitions costs as computed for financial statement and tax return 
purposes.                                                             

3.   INVESTMENTS                                                                

Fixed Income Securities                                               
Investments in fixed income securities at December 31, 2000 and 1999  
follow:                                                               

                                                                [Download Table]

                               Available for Sale (Carried at Fair Value) 
                                           December 31, 2000              
                              --------------------------------------------
                              Amortized   Unrealized  Unrealized    Fair  
                                Cost        Gains       Losses      Value 
                                                                          
Fixed income securities:                                                  
  U.S. government               $  771      $   36      $    1      $  806
  Mortgage-backed securities     2,224          26          14       2,236
  Non-investment grade bonds       725           5         106         624
  All other corporate bonds      3,710          90          92       3,708
                                ------      ------      ------      ------

    Total available for sale    $7,430      $  157      $  213      $7,374
                                ======      ======      ======      ======

                               Available for Sale (Carried at Fair Value) 
                                           December 31, 1999              
                              --------------------------------------------
                              Amortized   Unrealized  Unrealized    Fair  
                                Cost        Gains       Losses      Value 

Fixed income securities:                                                  
  U.S. government               $  798      $    1      $   48      $  751
  Mortgage-backed securities     2,177           2          83       2,096
  Non-investment grade bonds       653           7          44         616
  All other corporate bonds      3,612          60         160       3,512
                                ------      ------      ------      ------

    Total available for sale    $7,240      $   70      $  335      $6,975
                                ======      ======      ======      ======


Contractual Maturity of Fixed Income Securities                       
The amortized cost and fair value of fixed income securities available
for sale as of December 31, 2000 are shown below by contractual       
maturity.  Actual maturities may differ from contractual maturities   
because securities may be restructured, called or prepaid.            

                                        Amortized     Fair
Year to Maturity                                Cost        Value     

One year or less                               $  123       $  123    
After one year through five years               1,349        1,354    
After five years through ten years              1,940        1,887    
After ten years                                 1,794        1,774    
Mortgage-backed securities                      2,224        2,236    
                                           ------       ------

Total available for sale                    $7,430       $7,374 
                                           ======       ======

Equity Securities                                                     
Investments in equity securities and preferred stock at December 31,  
2000 and 1999 are as follows:                                         

                                             2000         1999

Cost                                             $618         $677    
Gross unrealized gains                            171          257    
Gross unrealized losses                            67           41    
                                             ----         ----

Carrying value                                   $722         $893    
                                             ====         ====

Mortgage Loans and Real Estate                                        
The Society's mortgage loans and real estate investments are          
diversified by property type and location and, for mortgage loans,    
borrower and loan size.                                               

At December 31, the carrying values of mortgage loans and real estate 
investments were as follows:                                          

                                           2000         1999

Mortgage loans:                                                       
Residential and commercial                   $1,865       $1,746  
Loans to Lutheran Churches                      371          356  
                                           ------       ------

Total mortgage loans                       $2,236       $2,102
                                           ======       ======

Real estate:                                                          
To be disposed of                            $    1       $    -  
To be held and used                              64           63  
                                           ------       ------

Total real estate                          $   65       $   63
                                           ======       ======

4.   Investment Income and Realized Gains and Losses                            

 For the year ended December 31, investment income summarized by type of
investment was as follows:                                            

                                      2000    1999    1998

Fixed income securities                     $483    $466    $459      
Equity securities                             23      20      18      
Mortgage loans                               173     167     177      
Real estate                                   20      17      14      
Loans to contractholders                      48      47      45      
Short-term investments                        75      54      52      
Other invested assets                         21      18       4      
                                      ----    ----    ----

Gross investment income                    843     789     769    

Investment expenses                          (44)    (41)    (34)     
                                      ----    ----    ----

Net investment income                       $799    $748    $735      
                                      ====    ====    ====

For the year ended December 31, gross realized investment gains and   
losses on sales of all types of investments are as follows:           

                                      2000    1999    1998

Fixed income securities:                                              
Realized gains                            $ 60    $ 87    $ 99    
Realized losses                            (98)    (99)    (31)   

Equity securities:                                                    
Realized gains                              87     115      86    
Realized losses                            (38)    (22)    (39)   

Other investments:                                                    
Realized gains                               6       6      13    
Realized losses                             (1)      -      (2)   
                                      ----    ----    ----

Total net realized investment gains         $ 16    $ 87    $126      
                                      ====    ====    ====

5.   Deferred Policy Acquisition Costs                                          

 The balances of and changes in deferred policy acquisition costs as and
for the years ended December 31 are as follows:                       

                                        2000    1999    1998

Balance, beginning of year                  $1,159  $  921  $  903    
Capitalization of acquisition costs            146     130     133    
Amortization                                   (48)    (66)   (101)   
Change in unrealized investment gains          (76)    174     (14)   
                                        ------  ------  ------

Balance, end of year                        $1,181  $1,159  $  921    
                                        ======  ======  ======

6.   Separate Account Business                                                  

Separate account assets include segregated funds invested by the      
 Society for the benefit of variable life insurance and variable annuity
contract owners.  A portion of the contract owner's premium payments  
are invested by the Society into the LB Variable Insurance Account I, 
the LB Variable Annuity Account I, the LBVIP Variable Insurance       
 Account, the LBVIP Variable Insurance Account II, or the LBVIP Variable
Annuity Account I (the Variable Accounts).  The Society records these 
payments as assets in the separate accounts.  Separate account        
liabilities represent reserves held related to the separate account   
business.                                                             

The Variable Accounts are unit investment trusts registered under the 
Investment Company Act of 1940.  Each Variable Account has seven      
 subaccounts, each of which invests only in a corresponding portfolio of
the LB Series Fund, Inc. (the Fund).  The Fund is a diversified, open-
end management investment company.  The shares of the Fund are carried
in the Variable Accounts' financial statements at the net asset value 
of the Fund.  The Society serves as the investment adviser of the Fund
 and is compensated through a daily investment advisory fee based on the
average daily net assets of each portfolio.  For the year ended       
December 31, 2000, 1999 and 1998, advisory fee income of $37, $29 and 
 $24, respectively, is included in the Consolidated Statement of Income.

A fixed account is also included as an investment option for variable 
annuity contract owners.  Net premiums allocated to the fixed account 
are invested in the assets of the Society.                            

The assets and liabilities of the Variable Accounts are clearly       
identified and distinguished from the other assets and liabilities of 
the Society.  The assets of the Variable Accounts will not be applied 
to the liabilities arising out of any other business conducted by the 
Society.                                                              

The Society assumes the mortality and expense risk associated with    
these contracts for which it is compensated by the separate accounts. 
The charges to the separate accounts, shown below for the year ended  
December 31, are based on the average daily net assets at specified   
annual rates:                                                         

                                        2000     1999     1998
                                   Rate  Charges  Charges  Charges

LB Variable Insurance Account I       0.6%   $  1    $  1    $  1     
LB Variable Annuity Account I         1.1%     44      34      24     
LBVIP Variable Insurance Account      0.6%      2       1       1     
LBVIP Variable Insurance Account II   2.3%      -       -       -     
LBVIP Variable Annuity Account I      1.1%     53      46      40     
                                        ----    ----    ----

                                        $100    $ 82    $ 66

Income from these charges is included in the Consolidated Statement of
Income.                                                               

 In addition, the Society deducts certain amounts from the cash value of
the accounts invested in the separate accounts for surrender charges, 
annual administrative charges and cost of insurance charges.  For the 
year ended December 31, amounts are as follows:                       

                                        2000    1999    1998

LB Variable Insurance Account I              $ 12    $ 10    $  8     
LB Variable Annuity Account I                   3       3       2     
LBVIP Variable Insurance Account               11      11      10     
LBVIP Variable Insurance Account II             -       -       -     
LBVIP Variable Annuity Account I                1       1       2     
                                        ----    ----    ----

                                        $ 27    $ 25    $ 22

7.   Employee Benefit Plans                                                     

Pension Plans                                                         
Defined Benefit                                                       

Lutheran Brotherhood has noncontributory defined benefit plans which  
 cover substantially all employees.  The Society's policy is to fund all
defined benefit pension costs using the aggregate level value method. 
In comparison to other acceptable methods, the annual contributions   
under the aggregate level method are generally higher in the earlier  
years and decrease over time.                                         

Components of net pension cost for the year ended December 31 were as 
follows:                                                              

                                                  2000   1999   1998

Service cost - benefits earned during the year      $ 5    $ 5    $ 4 
Interest cost on projected benefit obligations        9      8      8 
Expected return on assets                            (8)    (8)    (8)
                                                   ---    ---    ---

Net pension cost                                    $ 6    $ 5    $ 4 

 The following rates were used in computing the pension cost for each of
the three years in the period ended December 31:                      

                                                2000     1999     1998

 Discount rates used to determine expense        7.00%    7.00%    8.00%
 Assumed rates of compensation increases         5.00%    5.00%    6.00%
 Expected long-term rates of return              7.00%    7.00%    8.00%

The following tables summarize the reconciliation of funded status as 
of December 31 of the pension plan, including the change in benefit   
obligation and the change in plan assets:                             

                                                          2000    1999

Change in benefit obligation                                          
----------------------------                                          
Projected benefit obligation at beginning of year         $124    $114

Service cost                                                 5       5
Interest cost                                                9       8
Actuarial loss (gain)                                        7       1
 Benefits paid                                               (5)     (4)
                                                          ----    ----

Projected benefit obligation at end of year               $140    $124
                                                          ====    ====

Change in plan assets                                                 
---------------------                                                 
Fair value of plan assets at beginning of year            $124    $110

Actual return on plan assets                                15      13
Employer contribution                                        5       5
 Benefits paid                                               (5)     (4)
                                                          ----    ----

Fair value of plan assets at end of year                  $139    $124
                                                          ====    ====

Funded status                                                         
-------------                                                         
Funded status                                             $ (1)   $  -
 Unrecognized actuarial gain                                 (4)     (4)
Unrecognized transition amount                               1       1
                                                          ----    ----

 Accrued benefit cost                                      $ (4)   $ (3)
                                                          ====    ====

 Plan assets are held on deposit with the Society and invested primarily
in corporate bonds and mortgage loans.  Plan contributions are        
accumulated in a deposit administration fund, which is a part of the  
general assets of the Society.  The accrued retirement liability at   
December 31, 2000 of $143 is included in contract reserves and other  
liabilities.                                                          

The following rates were used in computation of the funded status for 
the plan at December 31:                                              

                                                         2000     1999

 Discount rates used for obligations                      7.00%    7.00%
 Assumed rates of compensation increases                  5.00%    5.00%

Defined Contribution                                                  

The Society has noncontributory defined contribution retirement plans 
 which cover substantially all employees and field representatives and a
noncontributory non-qualified deferred compensation plan which covers 
substantially all of its general agents.  As of January 1, 2000,      
 approximately $133 of the defined contribution retirement plans' assets
 were held by the Society and the remaining $139 were held in a separate
trust.  The accrued retirement liability at December 31, 2000 of $149 
is included in contract reserves.  Expenses related to the retirement 
 plan for the years ended December 31, 2000, 1999 and 1998 were $11, $12
and $11, respectively.  Accumulated vested deferred compensation      
 benefits at December 31, 2000 and 1999 total $66 and $61, respectively,
and are included in other liabilities.                                

The Society has established contributory 401(k) defined contribution  
plans which cover substantially all employees and field               
representatives.  Participants are immediately vested in their        
contributions plus investment earnings thereon.                       

Postretirement Benefits Other Than Pensions                           
The Society has a postretirement medical benefit plan which provides  
for a minor subsidy of certain medical benefits for eligible early    
retirees until age 65.  The Society's obligation for post-retirement  
medical benefits under the plan is not significant.                   

8.   Reinsurance                                                                

In the normal course of business, the Society seeks to limit its      
exposure to loss on any single insured and to recover a portion of    
benefits paid by ceding business to other insurance enterprises or    
 reinsurers under reinsurance contracts.  As of December 31, 2000, total
 life insurance inforce approximated $51 billion, of which approximately
 $1 billion had been ceded to various reinsurers.  The Society retains a
 maximum of $2 of coverage per individual life.  Premiums ceded to other
companies of $7 are reported as a reduction in premium income and     
benefits were reduced by $4 for reinsurance recoverable for the year  
ended December 31, 2000.                                              

Reinsurance contracts do not relieve the Society from its obligations 
to contractholders.  Failure of reinsurers to honor their obligations 
could result in losses to the Society; consequently, allowances are   
established for amounts deemed uncollectible.  The amount of the      
allowance for uncollectible reinsurance receivables was immaterial at 
December 31, 2000.                                                    

9.   Commitments and Contingencies                                              

Financial Commitments                                                 
The Society has commitments to extend credit for mortgage loans and   
other lines of credit of $104 and $90 at December 31, 2000 and 1999,  
respectively.  Commitments to purchase other invested assets were $117
and $58 at December 31, 2000 and 1999, respectively.                  

10.  Disclosures About Fair Value of Financial Instruments                      

The following methods and assumptions were used in estimating fair    
value disclosures for financial instruments.  In cases where quoted   
market prices are not available, fair values are based on estimates   
using present value or other valuation techniques.  Those techniques  
are significantly affected by the assumptions used, including the     
discount rate and estimates of future cash flows.  In that regard, the
derived fair value estimates cannot be substantiated by comparison to 
independent markets and, in many cases, could not be realized in      
immediate settlement of the instrument.                               

Fixed Income Securities:  Fair values for fixed income securities are 
based on quoted market prices, where available.  For fixed income     
 securities not actively traded in the market, fair values are estimated
using market quotes from brokers or internally developed pricing      
methods.                                                              

Equity Securities:  Fair values for equity securities are based on    
quoted market prices, where available.  For equity securities not     
actively traded in the market, fair values are estimated using market 
quotes from brokers or internally developed pricing methods.          

 Mortgage Loans:  The fair values for mortgage loans are estimated using
discounted cash flow analyses, using interest rates currently being   
offered in the marketplace for similar loans to borrowers with similar
credit ratings.                                                       

Loans to Contractholders:  The carrying amount reported in the balance
 sheet approximates fair value since loans on insurance contracts reduce
the amount payable at death or at surrender of the contract.          

Cash and Cash Equivalents, Short-Term Investments:  The carrying      
amounts for these assets approximate the assets' fair values.         

 Separate Account Assets and Liabilities:  The carrying amounts reported
for separate account assets and liabilities approximate their         
respective fair values.                                               

Other Financial Instruments Recorded as Assets:  The carrying amounts 
for these financial instruments (primarily loans receivable and other 
investments), approximate those assets' fair values.                  

 Investment Contract Liabilities:  The fair value for deferred annuities
was estimated to be the amount payable on demand at the reporting date
as those investment contracts have no defined maturity and are similar
to a deposit liability.  The amount payable at the reporting date was 
calculated as the account balance less applicable surrender charges.  

For supplementary contracts and immediate annuities without life      
 contingencies, the carrying amounts approximate those liabilities' fair
value.                                                                

The carrying amounts reported for other investment contracts, which   
include participating pension contracts and retirement plan deposits, 
approximate those liabilities' fair value.                            

Other Deposit Liabilities:  The carrying amounts for dividend         
accumulations and premium deposit funds approximate the liabilities'  
fair value.                                                           

Other Financial Instruments Recorded as Liabilities:  The carrying    
amounts for these financial instruments (primarily deposits and       
advances payable) approximate those liabilities' fair values.         

The carrying amounts and estimated fair values of the Society's       
financial instruments at December 31 are as follows:                  

                                                        [Enlarge/Download Table]

                                                              2000               1999       
                                                       -----------------  ------------------
                                                       Carrying   Fair    Carrying    Fair  
                                                        Amount    Value    Amount     Value 
                                                                                            
Financial instruments recorded as assets                                                    
  Fixed income securities                               $7,374    $7,374   $6,975     $6,975
  Equity securities                                        722       722      893        893
  Mortgage loans:                                                                           
    Residential and commercial                           1,865     2,007    1,746      1,763
    Loans to Lutheran churches                             371       376      356        339
  Loans to contractholders                                 748       748      721        721
  Cash and cash equivalents                                749       749    1,001      1,001
  Short-term investments                                   290       290      208        208
  Separate account assets                                8,842     8,842    9,059      9,059
  Other financial instruments recorded as assets            85        85       46         46

Financial instruments recorded as liabilities                                               
  Investment contracts:                                                                     
    Deferred annuities                                   2,465     2,427    2,624      2,578
    Supplementary contracts and immediate annuities        433       433      387        387
  Other deposit liabilities:                                                                
    Dividend accumulations                                  35        35       34         34
    Premium deposit funds                                    1         1        2          2
  Separate account liabilities                           8,842     8,842    9,059      9,059
  Other financial instruments recorded as liabilities       79        79       38         38

11.  Statutory Financial Information                                            

 Accounting practices used to prepare statutory financial statements for
regulatory filing of fraternal life insurance companies differ from   
accounting principles generally accepted in the United States of      
America (GAAP).  The following reconciles the Society's statutory net 
change in surplus and statutory surplus determined in accordance with 
accounting practices prescribed or permitted by the Department of     
Commerce of the State of Minnesota with net income and members' equity
on a GAAP basis.                                                      

                                                  Year Ended
                                                  December 31,
                                                  ------------------
                                                  2000        1999

Net change in statutory surplus                    $  (59)     $  136 
Change in asset valuation reserves                    (45)         34 
                                                  ------      ------

Net change in statutory surplus and                               
   asset valuation reserves                         (104)        170

Adjustments:                                                          
Future contract benefits and                                      
    contractholders' account balances                  56          (3)
 Deferred acquisition costs                           98          64
  Investment gains (losses)                            33        (111)
 Other, net                                           45          27
                                                  ------      ------

Consolidated net income                            $  128      $  147 
                                                  ======      ======

                                                  Year Ended
                                                  December 31,
                                                  ------------------
                                                  2000        1999

Statutory surplus                                  $1,218      $1,277 
Asset valuation reserves                              248         293 
                                                  ------      ------

 Statutory surplus and asset valuation reserves    1,466       1,570

Adjustments:                                                          
Future contract benefits and                                      
    contractholders' account balances                (388)       (467)
 Deferred acquisition costs                        1,181       1,159
 Interest maintenance reserves                        78         143
  Valuation of investments                            (43)       (263)
 Dividend liability                                  117         111
 Other, net                                           41          51
                                                  ------      ------

Consolidated members' equity                       $2,452      $2,304 
                                                  ======      ======

The Society files statutory-basis financial statements with state     
insurance departments in all states in which the Society is licensed. 
On January 1, 2001, significant changes to the statutory basis of     
accounting became effective.  The cumulative effect of these changes  
will be recorded as a direct adjustment to statutory surplus in the   
first quarter of 2001.  The effect of adoption is expected to be minor
and the Society expects that statutory surplus after adoption will    
continue to be in excess of the regulatory risk-based capital         
requirements.                                                         

12.  Supplementary Financial Data                                               

 Following is a condensed synopsis of statutory financial information of
the Society (excluding affiliated subsidiaries) at December 31, 2000  
and 1999.  This information is included to satisfy certain state      
reporting requirements for fraternals.                                

                                                    December 31,
                                                   -------------------
                                                    2000        1999

Invested and other admitted assets                 $12,260     $12,627
Assets held in separate accounts                     4,165       3,932
                                                   -------     -------

  Total assets                                     $16,425     $16,559
                                                   =======     =======

Contract reserves                                  $ 9,903     $ 9,529
Liabilities related to separate accounts             4,031       3,790
Other liabilities and asset reserves                 1,273       1,963
                                                   -------     -------

  Total liabilities and asset reserves              15,207      15,282
                                                   -------     -------

Unassigned surplus                                   1,218       1,277
                                                   -------     -------

  Total liabilities, asset reserves and surplus    $16,425     $16,559
                                                   =======     =======

Savings from operations before net realized                           
  capital gains                                         32          96
Net realized capital gains                              44          80
                                                   -------     -------

  Net savings from operations                           76         176

 Total other changes                                   (135)        (40)
                                                   -------     -------

Net change in unassigned surplus                   $   (59)    $   136
                                                   =======     =======

13.  Legal Matters                                                              

The Society is involved in various pending or threatened legal        
proceedings arising out of the normal course of business.  Also, the  
Society has been named in civil litigation proceedings alleging       
inappropriate life insurance sales practices by the Society, which    
appear to be similar to claims asserted in class actions brought      
 against many other life insurers.  These matters are sometimes referred
 to as market conduct lawsuits.  The Society believes it has substantial
defenses to these actions and intends to assert them in the courts    
where the actions were filed.  While the ultimate resolution of such  
litigation cannot be predicted with certainty at this time, in the    
opinion of management such matters will not have a material adverse   
effect on the financial position or results of operations of the      
Society.                                                              

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PART C.  OTHER INFORMATION  

Item 24.  Financial Statements and Exhibits                                     

(a)   Financial Statements:                                             

Part A: None.                                               

Part B: Financial Statements of Lutheran Brotherhood.  (2)  
              Financial Statements of LB Variable Annuity Account I. (2)

(b)   Exhibits:                                                         

    1.  Resolution of the Board of Directors of Lutheran Brotherhood
      ("Depositor") authorizing the establishment of LB Variable
Annuity Account I ("Registrant").  (1)              

2.  Not Applicable.                                         

3.(a)  Form of Distribution Agreement between Depositor and 
     Lutheran Brotherhood Securities Corp ("LBSC").  (1)

       (b)  Forms of General Agent's Agreement and Selected Registered
       Representative Agreement between LBSC and agents with
respect to the sale of Contracts.  (1)        

4.  Form of Contract.  (1)                                  

5.  Contract Application Form.  (1)                         

6.  Articles of Incorporation and Bylaws of Depositor.  (1) 

7.  Not Applicable.                                         

8.  Not Applicable.                                         

     9.  Opinion of counsel as to the legality of the securities being
registered (including written consent).  (1)        

10. Not Applicable.                                         

11. Not Applicable.                                         

12. Not Applicable.                                         

13. Computations of Performance Data.  (1)                  

14. Consent of Independent Accountant.  (2)                 

15. Power of Attorney.  (2)                                 

16. Consent of Counsel.  (2)                                

________________________________                                                

(1)  Included in Post-Effective Amendment No. 8 filed April 30, 1998.           

(2)  Filed herewith.                                                            

Item 25.  Directors and Officers of the Depositor                               

DIRECTORS                         POSITIONS AND OFFICES WITH DEPOSITOR

Dr. Addie J. Butler                    Director                       
Assistant Dean                                                        
Community College of Philadelphia                                     
1700 Spring Garden Street                                             
Philadelphia, Pennsylvania                                            

Bobby I. Griffin                       Director                       
Retired Executive Vice President--                                    
Medtronic, Inc.                                                   
1700 Spring Garden Street                                             
Golden Valley, Minnesota                                              

James M. Hushagen                      Director                       
Partner                                                               
Eisenhower & Carlson                                                  
1201 Pacific Avenue, Suite 1200                                       
Tacoma, Washington                                                    

Richard C. Kessler                     Director                       
President and Chief Executive Officer                                 
The Kessler Enterprise, Inc.                                          
7380 Sand Lake Road, Suite 120                                        
Orlando, Florida                                                      

Dr. Luther S. Luedtke                  Director                       
President and Chief Executive Officer                                 
California Lutheran University                                        
60 West Olsen Road                                                    
Thousand Oaks, California                                             

Richard C. Lundell                     Director                       
Retired General Agent                                                 
Lutheran Brotherhood                                                  
7341 Dogwood Lane                                                     
Excelsior, Minnesota                                                  

John P. McDaniel                       Director                       
Chief Executive Officer                                               
MedStar Health                                                        
5565 Sterett Place                                                    
Columbia, Maryland                                                    

Paul W. Middeke                                                       
Chief Financial Officer and            Director                       
Vice President-Finance/Treasurer                                  
The Lutheran Church--Missouri Synod                                   
International Center                                                  
1333 Kirkwood Road                                                    
St. Louis, Missouri                                                   

Bruce J. Nicholson                     Director, President and Chief  
Lutheran Brotherhood                   Executive Officer              
625 Fourth Avenue South                                               
Minneapolis, Minnesota                                                

Dr. Mary Ellen H. Schmider             Director                       
Faculty in History and English                                        
University of Maryland                                                
University College - European Division,                               
Heidelberg, Germany                                               
7701 180th Street                                                     
Chippewa Falls, Wisconsin                                             

Dr. Kurt M. Senske                     Director                       
President and Chief Executive Officer                                 
Lutheran Social Services                                              
408 West 45th Street                                                  
Austin, Texas                                                         

Dr. Albert K. Siu                      Director                       
Vice President                                                        
AT&T                                                                  
17 SchoolHouse Road, Room 300                                         
Somerset, New Jersey                                                  

OFFICERS                         POSITIONS AND OFFICES WITH DEPOSITOR 

Bruce J. Nicholson                 President and Chief Executive      
             Officer
David W. Angstadt                  Executive Vice President and Chief 
                       Marketing Officer
Deborah E. Moore                   Executive Vice President and Chief 
                       Operating Officer
Lawrence W. Stranghoener           Executive Vice President and Chief 
                     Financial Officer
J. Keith Both                      Senior Vice President - Agency     
                         Consulting Services
Randall L. Boushek                 Senior Vice President and Chief    
                        Investment Officer
Michael E. Loken                   Senior Vice President - Information
                          Technology Resources
Jennifer H. Martin                 Senior Vice President - Corporate  
                     Human Resources
James R. Olson                     Senior Vice President - Member     
              Services
Daniel G. Walseth                  Senior Vice President, General     
                           Counsel and Secretary
Mary M. Abbey                      Vice President - Client Systems    
Galen R. Becklin                   Vice President - Information       
                            Technology Data Center
Colleen Both                       Vice President - Chief Compliance  
             Officer
Michael R. Braun                   Vice President - Applications      
David J. Christianson              Vice President - Member Operations 
Pamela H. Desnick                  Vice President - Corporate         
                    Communications
Nathan A. Dungan                   Vice President - Brand/Stewardship 
                 Development
Mitchell F. Felchle                Vice President - Institutional     
                     Relations Group
Craig L. Halverson                 Vice President - Field Force       
                 Development
Charles E. Heeren                  Vice President - Mutual Fund       
              Equities
Roger W. Howe                      Vice President - Tech Competencies 
Gary J. Kallsen                    Vice President - Mortgages and Real
            Estate
Richard J. Kleven                  Vice President - Law               
Fred O. Konrath                    Vice President - Field Leadership  
                 Development
Douglas B. Miller                  Vice President - Agency Consulting 
              Services
C. Theodore Molen                  Vice President - Leadership        
                 Development
 Susan Oberman Smith                Vice President - Product Development
Kay J. Owen                        Vice President - Corporate Planning
 Dennis K. Peterson                 Vice President - Corporate Scorecard
Bruce M. Piltingsrud               Vice President - Agency Consulting 
              Services
Richard B. Ruckdashel              Vice President - Product Marketing 
Rolf H. Running                    Vice President - Financial         
                Management
Thomas C. Schinke                  Vice President - Agency Consulting 
              Services
Mark L. Simenstad                  Vice President - Mutual Fund Bond  
                 Investments
Lynette J.C. Stertz                Vice President and Managing        
                             Accountant - Controller
David K. Stewart                   Vice President and Treasurer       
John O. Swanson, M.D.              Vice President and Medical Director
Mark O. Swenson                    Vice President - General Accounting
                      Bond Investments
Sandra Ulsaker Wiese               Vice President - Government Affairs
James M. Walline                   Vice President - Portfolio Manager 
             LB Fund
Anita J.T. Young                   Vice President - Assistant to      
               President

The principal business address of each of the foregoing officers is 625         
Fourth Avenue South, Minneapolis, Minnesota  55415.                             

Item 26.  Persons Controlled by or Under Common Control with Depositor or       
Registrant                                                  

Registrant is a separate account of Depositor, established by the Board of      
Directors of Depositor in 1993 pursuant to the laws of the State of             
Minnesota.  Depositor is a fraternal insurance society organized under the      
laws of the state of Minnesota and is owned by and operated for its members.    
It has no stockholders nor is it subject to the control of any affiliated       
persons.  Depositor controls the following wholly owned direct and indirect     
subsidiaries: (a) Lutheran Brotherhood Financial Corporation ("LBFC"), a        
Minnesota corporation which is a holding company that has no independent        
operations; (b) Lutheran Brotherhood Variable Insurance Products Company        
("LBVIP"), a Minnesota corporation organized as a stock life insurance          
company; (c) LBSC, a Pennsylvania corporation which is a registered broker-     
dealer; (d) Lutheran Brotherhood Research Corp., a Minnesota corporation        
which is a licensed investment adviser; (e) Lutheran Brotherhood Property &     
Casualty Insurance Agency, Inc., a Minnesota corporation, which is a            
property and casualty insurance agency; (f) LB Bancorp, Inc., a federal         
corporation, which is a bank holding company; (g) MCB Financial Services,       
Inc., a Minnesota corporation, which is an insurance company; and (h) LB        
Community Bank & Trust, fsb, which is a federal savings bank.                   

Item 27.  Number of Contract Owners                                             

There were 116,266 Contract Owners as of March 31, 2001.                        

Item 28.  Indemnification                                                       

Reference is hereby made to Section 5 of Depositor's Bylaws, filed as an        
Exhibit to this Registration Statement, and to Section 5 of LBSC's By-Laws,     
which mandate indemnification by Depositor and LBSC of directors, officers      
and certain others under certain conditions.  Insofar as indemnification for    
liabilities arising under the Securities Act of 1933 may be permitted to        
directors, officers and controlling persons of Depositor or LBSC, pursuant      
to the foregoing provisions or otherwise, Depositor and LBSC have been          
advised that in the opinion of the Securities and Exchange Commission such      
indemnification is against public policy as expressed in the Act and is,        
therefore, unenforceable.  In the event that a claim for indemnification        
against such liabilities (other than the payment by Depositor or LBSC of        
expenses incurred or paid by a director or officer or controlling person of     
Depositor or LBSC in the successful defense of any action, suit or              
proceeding) is asserted by such director, officer or controlling person of      
Depositor or LBSC in connection with the securities being registered,           
Depositor or LBSC will, unless in the opinion of its counsel the matter has     
been settled by controlling precedent, submit to a court of appropriate         
jurisdiction the question of whether or not such indemnification by it is       
against public policy as expressed in the Act and will be governed by the       
final adjudication of such issue.                                               

An insurance company blanket bond is maintained providing $15,000,000           
coverage for officers, employees, and agents of Lutheran Brotherhood, LBVIP     
and LBSC.                                                                       

Item 29.  Principal Underwriter                                                 

(a)  LBSC, the principal underwriter of the Contracts, is also named as         
distributor of the stock of The Lutheran Brotherhood Family of Funds, a         
diversified open-end investment company organized as a Delaware business        
trust, consisting of the following series:  Lutheran Brotherhood Opportunity    
Growth Fund, Lutheran Brotherhood Mid Cap Growth Fund, Lutheran Brotherhood     
World Growth Fund, Lutheran Brotherhood Growth Fund, Lutheran Brotherhood       
Fund, Lutheran Brotherhood Value Fund, Lutheran Brotherhood High Yield Fund,    
Lutheran Brotherhood Income Fund, Lutheran Brotherhood Municipal Bond Fund,     
Lutheran Brotherhood Limited Maturity Bond Fund and Lutheran Brotherhood        
Money Market Fund.  LBSC also acts or will act as the principal underwriter     
of the following variable contracts:  flexible premium variable life            
insurance contracts issued by Depositor through LB Variable Insurance           
Account I, a separate account of Depositor to be registered as a unit           
investment trust under the Investment Company Act of 1940;  flexible premium    
deferred variable annuity contracts issued by LBVIP through LBVIP Variable      
Annuity Account I, a separate account of LBVIP registered as a unit             
investment trust under the Investment Company Act of 1940;  flexible premium    
variable life insurance contracts issued by LBVIP through LBVIP Variable        
Insurance Account, a separate account of LBVIP registered as a unit             
investment trust under the Investment Company Act of 1940;  and of single       
premium variable life insurance contracts issued by LBVIP through LBVIP         
Variable Insurance Account II, a separate account of LBVIP registered as a      
unit investment trust under the Investment Company Act of 1940.                 

(b)  The directors and officers of LBSC are as follows:                         

Bruce J. Nicholson             Director and Chairman                  
David W. Angstadt              Director and President                 
Randall L. Boushek             Director                               
Jennifer H. Martin             Director                               
Deborah E. Moore               Director                               
Lawrence W. Stranghoener        Director                              
Daniel G. Walseth              Director                               
David K. Stewart               Treasurer                              
John C. Bjork                  Secretary                              
Colleen Both                   Vice President and Chief Compliance    
   Officer
J. Keith Both                  Vice President                         
David J. Christianson          Vice President                         
Mitchell F. Felchle            Vice President                         
Douglas B. Miller              Vice President                         
James R. Olson                 Vice President                         
Bruce M. Piltingsrud           Vice President                         
Richard B. Ruckdashel          Vice President                         
Thomas C. Schinke              Vice President                         

The principal business address of each of the foregoing officers is 625         
Fourth Avenue South, Minneapolis, Minnesota  55415.                             

(c)  Not Applicable.                                                            

Item 30.  Location of Accounts and Records                                      

The accounts and records of Registrant are located at the office of             
Depositor at 625 Fourth Avenue South, Minneapolis, Minnesota 55415.             

Item 31.  Management Services                                                   

Not Applicable.                                                                 

Item 32.  Undertakings                                                          

Registrant will file a post-effective amendment to this Registration            
Statement as frequently as is necessary to ensure that the audited financial    
statements in this Registration Statement are never more than 16 months old     
for so long as payments under the Contracts may be accepted.                    

Registrant will include either (1) as part of any application to purchase a     
Contract offered by the Prospectus, a space that an applicant can check to      
request a Statement of Additional Information, or (2) a postcard or similar     
written communication affixed to or included in the Prospectus that the         
applicant can remove to send for a Statement of Additional Information.         

Registrant will deliver any Statement of Additional Information and any         
financial statements required to be made available under this form promptly     
upon written or oral request.                                                   

Registrant understands that the restrictions imposed by Section 403(b)(11)      
of the Internal Revenue Code conflict with certain sections of the              
Investment Company Act of 1940 that are applicable to the Contracts.  In        
this regard, Registrant is relying on a no-action letter issued on November     
28, 1988 by the Office of Insurance Product and Legal Compliance of the SEC,    
and the requirements for such reliance have been complied with by               
Registrant.                                                                     

Lutheran Brotherhood hereby represents that, as to the individual flexible      
premium variable annuity contracts that are the subject of this registration    
statement, File Number 33-67012, that the fees and charges deducted under       
the contracts, in the aggregate, are reasonable in relation to the services     
rendered, the expenses expected to be incurred and the risks assumed by         
Lutheran Brotherhood.                                                           

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SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the      
Investment Company Act of 1940, the Registrant certifies that it meets all      
of the requirements for effectiveness of this amendment to the Registration     
Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has      
duly caused this amendment to the Registration Statement to be signed on its    
behalf by the undersigned, thereunto duly authorized, in the City of            
Minneapolis and State of Minnesota on the 24th day of April, 2001.              

                                 LB VARIABLE ANNUITY ACCOUNT I
                                (Registrant)

                            By  LUTHERAN BROTHERHOOD
                               (Depositor)

                     By              *
                                        ----------------------------
                                         Bruce J. Nicholson, President
                                       and Chief Executive Officer

Pursuant to the requirements of the Securities Act of 1933 and the    
Investment Company Act of 1940, the Depositor has duly caused this Amendment    
to the Registration Statement to be signed on its behalf by the undersigned,    
thereunto duly authorized, in the City of Minneapolis and State of Minnesota    
on the 24th day of April, 2001.                                                 

                        LUTHERAN BROTHERHOOD
                     (Depositor)

                      By               *
                                        ----------------------------
                                         Bruce J. Nicholson, President
                                       and Chief Executive Officer

Pursuant to the requirements of the Securities Act of 1933 and the    
Investment Company Act of 1940, this Amendment to the Registration Statement    
has been signed on the 24th day of April, 2001 by the following directors       
and officers of Depositor in the capacities indicated:                          

           *                 President and Chief Executive Officer
---------------------------                                           
Bruce J. Nicholson                                                    

        *                 Executive Vice President and Chief
----------------------------     Financial Officer (Principal         
Lawrence W. Stranghoener         Financial Officer)                   

             *                 Vice President and Treasurer (Principal
----------------------------     Accounting Officer)                  
David K. Stewart                                                      

A Majority of the Board of Directors:*                                          

Addie J. Butler              John P. McDaniel                         
Bobby I Griffin              Paul W. Middeke                          
James M. Hushagen            Bruce J. Nicholson                       
Richard Kessler              Mary Ellen H. Schmider                   
Luther S. Luedtke            Kurt M. Senske                           
Richard C. Lundell           Albert K. Siu                            

* John C. Bjork, by signing his name hereto, does hereby sign this document     
on behalf of each of the above-named directors and officers of Lutheran         
Brotherhood pursuant to a power of attorney duly executed by such persons       
and filed herewith.                                                             

                            By:  /s/ John C. Bjork
                                      --------------------------------
                                     John C. Bjork, Attorney-in-Fact

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INDEX TO EXHIBITS       
LB VARIABLE ANNUITY ACCOUNT I     

EXHIBIT NO.                                                                     
----------                                                                      

14             Consent of Independent Accountant.                           

15             Power of Attorney.                                           

16             Consent of Counsel.                                          

- 69 -                                                                          

Dates Referenced Herein   and   Documents Incorporated by Reference

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