1111111 2 annual statement reliance standard … statement for the year 2012 of the reliance...

(Signs' Lawrence Edmund Daurelle

1. (Printed Name) President

(Signature) Charles Thomas Denaro

2. (Printed Name) Secretary

74"

(Sig ure) Thomas William Burghart

3. (Printed Name) Treasurer

(Title)

Subscribed and sworn to before me

This 18th day of

(Title)

a. Is this an original filing?

b. If no 1. State the amendment number

2. Date filed

3. Number of pages attached

(Title)

Yes [ X ] No [

February, 2013

COMMONWEALTH OF PENNSYLVANIA

LIFE AND ACCIDENT AND HEALTH COMPANIES - ASSOCIATION EDITION

1111111

111111111111111 1 0 0 1 0 0

ANNUAL STATEMENT For the Year Ended December 31, 2012

of the Condition and Affairs of the

Reliance Standard Life Insurance Company NAIC Group Code 3098, 3098 NAIC Company Code 68381 Employer's ID Number 36-0883760

(Current Period) (Prior Period)

Organized under the Laws of Illinois State of Domicile or Port of Entry Illinois Country of Domicile US

Incorporated/Organized April 2, 1907 Commenced Business April 15, 1907

Statutory Home Office 111 South Wacker Drive, Suite 4400 Chicago IL US 60606-4410 (Street and Number) (City or Town, State, Country and Zip Code)

Main Administrative Office

2001 Market Street, Suite 1500 Philadelphia PA US

19103

267-256-3500 (Street and Number) (City or Town, State, Country and Zip Code)

(Area Code) (Telephone Number)

Mail Address

2001 Market Street, Suite 1500..... Philadelphia PA

US 19103 (Street and Number or P. 0. Box) (City or Town, State, Country and Zip Code)

Primary Location of Books and Records

2001 Market Street, Suite 1500 Philadelphia PA US 19103

267-256-3500 (Street and Number) (City or Town, State, Country and Zip Code)

(Area Code) (Telephone Number)

Internet Web Site Address www.reliancestandard.com

Statutory Statement Contact

Paul Van Haren

267-256-3664 (Name)

(Area Code) (Telephone Number) (Extension)

[email protected]

267-256-3522 (E-Mail Address)

(Fax Number)

Name 1. Lawrence Edmund Daurelle 3. Thomas William Burghart

Thomas William Burghart Chad William Coulter Charles Thomas Denaro Christopher Anthony Fazzini

Title President Treasurer

Senior Vice President Senior Vice President Vice President Executive Vice President

OFFICERS Name

2. Charles Thomas Denaro 4. Rosemary Theresa Barton, FSA, MAAA

OTHER Warren Mark Cohen Andrew Burbeck Davison # Daniel Joseph Falkenstein Debra Glazer Staples

Title Secretary Appointed Actuary

Senior Vice President Senior Vice President Senior Vice President Senior Vice President

DIRECTORS OR TRUSTEES Lawrence Edmund Daurelle

Steven Andrew Hirsh Ichiro Ishii #

Stephan Arthur Kiratsous James Michael Litvack #

James Norbert Meehan Philip Robert O'Connor

Robert Rosenkranz Donald Alan Sherman

State of Pennsylvania County of Philadelphia

The officers of this reporting entity being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: (1) state law may differ; or, (2) that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement.

NOTARIAL SEAL NICOLE FULMORE, Notary Pubic City of Philadelphia, Phila. County

My Commission Expires November 9, 2015

2

Annual Statement for the year 2012 of the Reliance Standard Life Insurance Company

2

ASSETSCurrent Year Prior Year

1 2 3 4Net Admitted

Nonadmitted Assets NetAssets Assets (Cols. 1 - 2) Admitted Assets

1. Bonds (Schedule D)................................................................................................... ..........4,496,581,251 .................................. ..........4,496,581,251 ..........3,831,582,904

2. Stocks (Schedule D):

2.1 Preferred stocks................................................................................................ ...............10,587,261 .................................. ...............10,587,261 ...............10,964,014

2.2 Common stocks................................................................................................ .............125,857,191 .................................. .............125,857,191 .............110,091,183

3. Mortgage loans on real estate (Schedule B):

3.1 First liens.......................................................................................................... ...............40,782,400 .................................. ...............40,782,400 ...............52,079,851

3.2 Other than first liens.......................................................................................... .................3,448,988 .................................. .................3,448,988 ..................................

4. Real estate (Schedule A):

4.1 Properties occupied by the company (less $..........0encumbrances)................................................................................................. .................................. .................................. ...............................0 ..................................

4.2 Properties held for the production of income (less $..........0encumbrances)................................................................................................. ...........................499 ...........................499 ...............................0 ..................................

4.3 Properties held for sale (less $..........0 encumbrances)..................................... .................................. .................................. ...............................0 ....................124,352

5. Cash ($.....2,476,675, Schedule E-Part 1), cash equivalents ($..........0, Schedule E-Part 2) and short-term investments ($.....66,703,565, Schedule DA)....... ...............69,180,240 .................................. ...............69,180,240 .............175,177,305

6. Contract loans (including $..........0 premium notes).................................................... ....................306,395 .................................. ....................306,395 ....................321,183

7. Derivatives (Schedule DB).......................................................................................... .................5,941,873 .................................. .................5,941,873 .................3,913,666

8. Other invested assets (Schedule BA)......................................................................... .............159,495,001 .................................. .............159,495,001 .............167,347,543

9. Receivables for securities........................................................................................... .................1,319,390 .................................. .................1,319,390 ...............13,339,154

10. Securities lending reinvested collateral assets (Schedule DL).................................... .................................. .................................. ...............................0 ..................................

11. Aggregate write-ins for invested assets...................................................................... ...............................0 ...............................0 ...............................0 ...............................0

12. Subtotals, cash and invested assets (Lines 1 to 11)................................................... ..........4,913,500,489 ...........................499 ..........4,913,499,990 ..........4,364,941,155

13. Title plants less $..........0 charged off (for Title insurers only)..................................... .................................. .................................. ...............................0 ..................................

14. Investment income due and accrued.......................................................................... ...............41,594,715 .................................. ...............41,594,715 ...............40,658,627

15. Premiums and considerations:

15.1 Uncollected premiums and agents' balances in the course of collection............ ...............66,909,902 .................1,383,702 ...............65,526,200 ...............57,082,172

15.2 Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $..........0 earned but unbilled premiums).................. ....................265,974 .................................. ....................265,974 ....................195,714

15.3 Accrued retrospective premiums....................................................................... .................................. .................................. ...............................0 ..................................

16. Reinsurance:

16.1 Amounts recoverable from reinsurers............................................................... .................4,291,334 .................................. .................4,291,334 .................4,713,496

16.2 Funds held by or deposited with reinsured companies...................................... .................................. .................................. ...............................0 ..................................

16.3 Other amounts receivable under reinsurance contracts..................................... .................1,990,529 .................................. .................1,990,529 .................2,221,081

17. Amounts receivable relating to uninsured plans.......................................................... .................................. .................................. ...............................0 ..................................

18.1 Current federal and foreign income tax recoverable and interest thereon................... .................6,814,457 .................................. .................6,814,457 .................4,701,656

18.2 Net deferred tax asset................................................................................................ ...............68,570,845 ...............45,954,221 ...............22,616,624 ...............24,440,619

19. Guaranty funds receivable or on deposit..................................................................... ....................589,739 .................................. ....................589,739 ....................559,057

20. Electronic data processing equipment and software................................................... .................5,786,058 .................4,718,028 .................1,068,030 .................1,139,507

21. Furniture and equipment, including health care delivery assets ($..........0)................. .................5,560,607 .................5,560,607 ...............................0 ..................................

22. Net adjustment in assets and liabilities due to foreign exchange rates........................ .................................. .................................. ...............................0 ..................................

23. Receivables from parent, subsidiaries and affiliates................................................... ....................214,728 ......................73,741 ....................140,987 ...............................9

24. Health care ($..........0) and other amounts receivable................................................ .................................. .................................. ...............................0 ..................................

25. Aggregate write-ins for other than invested assets..................................................... .................3,769,235 .................3,769,235 ...............................0 ...............................0

26. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25).................................................................................... ..........5,119,858,612 ...............61,460,033 ..........5,058,398,579 ..........4,500,653,093

27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts........... .............128,543,569 .................................. .............128,543,569 .............117,365,333

28. TOTALS (Lines 26 and 27)......................................................................................... ..........5,248,402,181 ...............61,460,033 ..........5,186,942,148 ..........4,618,018,426

DETAILS OF WRITE-INS1101. ................................................................................................................................... .................................. .................................. ...............................0 ..................................1102. ................................................................................................................................... .................................. .................................. ...............................0 ..................................1103. ................................................................................................................................... .................................. .................................. ...............................0 ..................................1198. Summary of remaining write-ins for Line 11 from overflow page................................. ...............................0 ...............................0 ...............................0 ...............................01199. Totals (Lines 1101 thru 1103 plus 1198) (Line 11 above)........................................... ...............................0 ...............................0 ...............................0 ...............................02501. Prepaid pension costs and other expenses and suspense debits................................ .................2,159,582 .................2,159,582 ...............................0 ..................................2502. Other than invested assets nonadmitted..................................................................... ....................687,992 ....................687,992 ...............................0 ..................................2503. Other assets nonadmitted........................................................................................... ....................921,661 ....................921,661 ...............................0 ..................................2598. Summary of remaining write-ins for Line 25 from overflow page................................. ...............................0 ...............................0 ...............................0 ...............................02599. Totals (Lines 2501 thru 2503 plus 2598) (Line 25 above)........................................... .................3,769,235 .................3,769,235 ...............................0 ...............................0


3

LIABILITIES, SURPLUS AND OTHER FUNDS1 2

Current Year Prior Year1. Aggregate reserve for life contracts $.....2,586,317,555 (Exhibit 5, Line 9999999) less $..........0

included in Line 6.3 (including $..........0 Modco Reserve)..................................................................................................... ................2,586,317,555 ................2,176,970,5242. Aggregate reserve for accident and health contracts (including $.........0 Modco Reserve).................................................... ...................904,085,255 ...................842,392,5533. Liability for deposit-type contracts (Exhibit 7, Line 14, Col. 1) (including $..........0 Modco Reserve)..................................... .....................43,150,465 .....................40,614,5424. Contract claims:

4.1 Life (Exhibit 8, Part 1, Line 4.4, Col. 1 less sum of Cols. 9, 10 and 11)...................................................................... .....................48,429,454 .....................51,542,6574.2 Accident and health (Exhibit 8, Part 1, Line 4.4, sum of Cols. 9, 10 and 11).............................................................. ...................535,923,486 ...................493,071,532

5. Policyholders' dividends $..........0 and coupons $..........0 due and unpaid (Exhibit 4, Line 10)............................................. ........................................ ........................................6. Provision for policyholders' dividends and coupons payable in following calendar year - estimated amounts:

6.1 Dividends apportioned for payment (including $..........0 Modco)................................................................................ ........................................ ........................................6.2 Dividends not yet apportioned (including $..........0 Modco)........................................................................................ ........................................ ........................................6.3 Coupons and similar benefits (including $..........0 Modco)......................................................................................... ........................................ ........................................

7. Amount provisionally held for deferred dividend policies not included in Line 6..................................................................... ........................................ ........................................8. Premiums and annuity considerations for life and accident and health contracts received in advance less $..........0

discount; including $.....163,032 accident and health premiums (Exhibit 1, Part 1, Col. 1, sum of Lines 4 and 14)................ ..........................241,697 ..........................159,6929. Contract liabilities not included elsewhere:

9.1 Surrender values on canceled contracts.................................................................................................................... ........................................ ........................................9.2 Provision for experience rating refunds, including the liability of $..........0 accident and health experience

rating refunds of which $..........0 is for medical loss ratio rebate per the Public Health Service Act........................... ........................................ ........................................9.3 Other amounts payable on reinsurance, including $.....306,974 assumed and $.....2,310,216 ceded......................... .......................2,617,190 ..........................804,8749.4 Interest Maintenance Reserve (IMR, Line 6).............................................................................................................. .....................62,675,825 .....................41,369,337

10. Commissions to agents due or accrued - life and annuity contracts $..........0, accident and health $..........0 and deposit-type contract funds $..........0............................................................................................................................. ........................................ ........................................

11. Commissions and expense allowances payable on reinsurance assumed............................................................................ ........................................ ........................................12. General expenses due or accrued (Exhibit 2, Line 12, Col. 6)............................................................................................... .....................38,278,538 .....................30,663,93813. Transfers to Separate Accounts due or accrued (net) (including $..........0 accrued for expense

allowances recognized in reserves, net of reinsured allowances)......................................................................................... .........................(166,111) .........................(150,766)14. Taxes, licenses and fees due or accrued, excluding federal income taxes (Exhibit 3, Line 9, Col. 5).................................... .......................2,784,703 .......................2,403,15515.1 Current federal and foreign income taxes, including $..........0 on realized capital gains (losses)........................................... ........................................ ........................................15.2 Net deferred tax liability........................................................................................................................................................ ........................................ ........................................16. Unearned investment income............................................................................................................................................... ........................................ ........................................17. Amounts withheld or retained by company as agent or trustee............................................................................................. .......................5,775,983 .......................1,751,31018. Amounts held for agents' account, including $.....2,294,753 agents' credit balances............................................................. .......................2,294,753 .......................3,069,33719. Remittances and items not allocated.................................................................................................................................... .....................30,137,515 .....................34,108,66820. Net adjustment in assets and liabilities due to foreign exchange rates.................................................................................. ........................................ ........................................21. Liability for benefits for employees and agents if not included above.................................................................................... ........................................ ........................................22. Borrowed money $.....55,000,000 and interest thereon $.....342,146.................................................................................... .....................55,342,146 .....................55,342,14623. Dividends to stockholders declared and unpaid.................................................................................................................... .....................72,000,000 .....................57,000,00024. Miscellaneous liabilities:

24.01 Asset valuation reserve (AVR Line 16, Col. 7)........................................................................................................... .....................37,071,418 .....................25,118,72124.02 Reinsurance in unauthorized and certified ($..........0) companies.............................................................................. ........................................ ........................................24.03 Funds held under reinsurance treaties with unauthorized and certified ($..........0) reinsurers.................................... ........................................ ........................................24.04 Payable to parent, subsidiaries and affiliates............................................................................................................. .......................2,692,696 ..........................935,00424.05 Drafts outstanding..................................................................................................................................................... ........................................ ........................................24.06 Liability for amounts held under uninsured plans....................................................................................................... ........................................ ........................................24.07 Funds held under coinsurance................................................................................................................................... ........................................ ........................................24.08 Derivatives................................................................................................................................................................ ..........................208,791 ........................................24.09 Payable for securities................................................................................................................................................ .......................2,224,398 .....................37,326,99624.10 Payable for securities lending.................................................................................................................................... ........................................ ........................................24.11 Capital notes $..........0 and interest thereon $..........0............................................................................................... ........................................ ........................................

25. Aggregate write-ins for liabilities........................................................................................................................................... .....................64,779,274 .....................83,844,83726. Total liabilities excluding Separate Accounts business (Lines 1 to 25).................................................................................. ................4,496,865,031 ................3,978,339,05727. From Separate Accounts Statement..................................................................................................................................... ...................128,543,569 ...................117,365,42328. Total liabilities (Line 26 and 27)............................................................................................................................................ ................4,625,408,600 ................4,095,704,48029. Common capital stock.......................................................................................................................................................... .......................6,003,113 .......................6,003,11330. Preferred capital stock.......................................................................................................................................................... .....................50,000,000 .....................50,000,00031. Aggregate write-ins for other than special surplus funds....................................................................................................... .....................................0 .....................................032. Surplus notes........................................................................................................................................................................ ........................................ ........................................33. Gross paid in and contributed surplus (, Line 33, Col. 2 plus Page 4, Line 51.1, Col. 1)............................................ ...................124,950,189 ...................124,950,18934. Aggregate write-ins for special surplus funds........................................................................................................................ .....................................0 .....................10,064,64735. Unassigned funds (surplus).................................................................................................................................................. ...................380,580,246 ...................331,295,99736. Less treasury stock, at cost:

36.1 .....0.000 shares common (value included in Line 29 $..........0)................................................................................. ........................................ ........................................36.2 .....0.000 shares preferred (value included in Line 30 $..........0)................................................................................ ........................................ ........................................

37. Surplus (Total Lines 31 + 32 + 33 + 34 + 35 - 36) (including $..........0 in Separate Accounts Statement)............................. ...................505,530,435 ...................466,310,83338. Totals of Lines 29, 30 and 37 (Page 4, Line 55).................................................................................................................... ...................561,533,548 ...................522,313,94639. Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3).............................................................................................................. ................5,186,942,148 ................4,618,018,426

DETAILS OF WRITE-INS2501. Retained assets program liability to claimants and other miscellaneous liabilities................................................................. .....................41,506,728 .....................61,137,5432502. Minimum pension liability adjustment.................................................................................................................................... .....................23,272,546 .....................22,707,2942503. ............................................................................................................................................................................................. ........................................ ........................................2598. Summary of remaining write-ins for Line 25 from overflow page........................................................................................... .....................................0 .....................................02599. Totals (Lines 2501 thru 2503 plus 2598) (Line 25 above)...................................................................................................... .....................64,779,274 .....................83,844,8373101. ............................................................................................................................................................................................. ........................................ ........................................3102. ............................................................................................................................................................................................. ........................................ ........................................3103. ............................................................................................................................................................................................. ........................................ ........................................3198. Summary of remaining write-ins for Line 31 from overflow page........................................................................................... .....................................0 .....................................03199. Totals (Lines 3101 thru 3103 plus 3198) (Line 31 above)...................................................................................................... .....................................0 .....................................03401. Change in accounting method - SSAP 10R.......................................................................................................................... ........................................ .....................10,064,6473402. ............................................................................................................................................................................................. ........................................ ........................................3403. ............................................................................................................................................................................................. ........................................ ........................................3498. Summary of remaining write-ins for Line 34 from overflow page........................................................................................... .....................................0 .....................................03499. Totals (Lines 3401 thru 3403 plus 3498) (Line 34 above)...................................................................................................... .....................................0 .....................10,064,647


4

SUMMARY OF OPERATIONS1 2

Current Year Prior Year 1. Premiums and annuity considerations for life and accident and health contracts (Exhibit 1, Part 1, Line 20.4, Col. 1, less Col. 11)..... ...........1,386,581,460 ...........1,320,861,718 2. Considerations for supplementary contracts with life contingencies..................................................................................................... ....................858,744 .................1,748,5983. Net investment income (Exhibit of Net Investment Income, Line 17)................................................................................................... .............253,816,376 .............222,359,1644. Amortization of Interest Maintenance Reserve (IMR) (Line 5).............................................................................................................. .................8,209,387 .................3,938,1275. Separate Accounts net gain from operations excluding unrealized gains or losses.............................................................................. .................................. ..................................6. Commissions and expense allowances on reinsurance ceded (Exhibit 1, Part 2, Line 26.1, Col. 1)..................................................... .................2,588,378 .................1,901,2057. Reserve adjustments on reinsurance ceded........................................................................................................................................ .................................. ..................................8. Miscellaneous Income:

8.1 Income from fees associated with investment management, administration and contract guarantees from Separate Accounts. .................1,922,125 .................1,918,2878.2 Charges and fees for deposit-type contracts.............................................................................................................................. .................................. ..................................8.3 Aggregate write-ins for miscellaneous income........................................................................................................................... .................3,719,928 .................1,628,346

9. Totals (Lines 1 to 8.3).......................................................................................................................................................................... ...........1,657,696,398 ...........1,554,355,44510. Death benefits..................................................................................................................................................................................... ...............54,600,187 ...............59,247,84411. Matured endowments (excluding guaranteed annual pure endowments)............................................................................................. .................................. ..................................12. Annuity benefits (Exhibit 8, Part 2, Line 6.4, Cols. 4 + 8)..................................................................................................................... ...............44,146,822 ...............46,652,90813. Disability benefits and benefits under accident and health contracts.................................................................................................... .............494,065,419 .............447,462,53014. Coupons, guaranteed annual pure endowments and similar benefits.................................................................................................. .................................. ..................................15. Surrender benefits and withdrawals for life contracts........................................................................................................................... .............127,262,725 .............126,286,91716. Group conversions.............................................................................................................................................................................. .................................. ..................................17. Interest and adjustments on contract or deposit-type contract funds.................................................................................................... .................2,530,728 .................5,661,21818. Payments on supplementary contracts with life contingencies............................................................................................................. .................1,692,169 .................1,747,81019. Increase in aggregate reserves for life and accident and health contracts........................................................................................... .............471,030,572 .............438,844,89120. Totals (Lines 10 to 19)......................................................................................................................................................................... ...........1,195,328,622 ...........1,125,904,11821. Commissions on premiums, annuity considerations and deposit-type contract funds (direct business only)

(Exhibit 1, Part 2, Line 31, Col. 1)........................................................................................................................................................ .............133,356,472 .............129,490,40222. Commissions and expense allowances on reinsurance assumed (Exhibit 1, Part 2, Line 26.2, Col. 1)................................................ .................1,993,430 .................2,363,23023. General insurance expenses (Exhibit 2, Line 10, Columns 1, 2, 3 and 4)............................................................................................ .............151,972,637 .............140,966,47524. Insurance taxes, licenses and fees, excluding federal income taxes (Exhibit 3, Line 7, Cols. 1 + 2 + 3).............................................. ...............29,046,358 ...............29,360,65425. Increase in loading on deferred and uncollected premiums................................................................................................................. .................1,634,597 ....................225,03326. Net transfers to or (from) Separate Accounts net of reinsurance......................................................................................................... .......................(4,026) .......................(3,821)27. Aggregate write-ins for deductions...................................................................................................................................................... ...............................0 ...............................028. Totals (Lines 20 to 27)......................................................................................................................................................................... ...........1,513,328,090 ...........1,428,306,09129. Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28)..................................... .............144,368,308 .............126,049,35430. Dividends to policyholders................................................................................................................................................................... .................................. ..................................31. Net gain from operations after dividends to policyholders and before federal income taxes (Line 29 minus Line 30)........................... .............144,368,308 .............126,049,35432. Federal and foreign income taxes incurred (excluding tax on capital gains)......................................................................................... ...............35,498,596 ...............37,399,49533. Net gain from operations after dividends to policyholders and federal income taxes and before realized

capital gains or (losses) (Line 31 minus Line 32)................................................................................................................................. .............108,869,712 ...............88,649,85934. Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital gains tax of $.....(7,314,018)

(excluding taxes of $.....15,893,163 transferred to the IMR)................................................................................................................. ..............(20,493,928) ..............(11,755,417)35. Net income (Line 33 plus Line 34)....................................................................................................................................................... ...............88,375,784 ...............76,894,442

CAPITAL AND SURPLUS ACCOUNT36. Capital and surplus, December 31, prior year (Page 3, Line 38, Col. 2)............................................................................................... .............522,313,946 .............530,562,83537. Net income (Line 35)........................................................................................................................................................................... ...............88,375,784 ...............76,894,44238. Change in net unrealized capital gains (losses) less capital gains tax of $.....11,846,591.................................................................... ...............17,653,108 .................5,966,60339. Change in net unrealized foreign exchange capital gain (loss) ........................................................................................................... .................8,140,758 ..............(14,025,233)40. Change in net deferred income tax...................................................................................................................................................... .................7,262,492 ................(5,626,996)41. Change in nonadmitted assets............................................................................................................................................................ ...............14,152,703 ................(4,004,736)42. Change in liability for reinsurance in unauthorized and certified companies......................................................................................... .................................. ..................................43. Change in reserve on account of change in valuation basis, (increase) or decrease (Exhibit 5A, Line 9999999, Col. 4)...................... .................................. ..................................44. Change in asset valuation reserve ...................................................................................................................................................... ..............(11,952,697) ................(3,447,132)45. Change in treasury stock, (Page 3, Lines 36.1 and 36.2 Col. 2 minus Col. 1)...................................................................................... .................................. ..................................46. Surplus (contributed to) withdrawn from Separate Accounts during period.......................................................................................... .................................. ..................................47. Other changes in surplus in Separate Accounts Statement................................................................................................................. .............................99 ..................................48. Change in surplus notes...................................................................................................................................................................... .................................. ..................................49. Cumulative effect of changes in accounting principles......................................................................................................................... .................................. ..................................50. Capital changes:

50.1 Paid in........................................................................................................................................................................................ .................................. ..................................50.2 Transferred from surplus (Stock Dividend)................................................................................................................................. .................................. ..................................50.3 Transferred to surplus................................................................................................................................................................ .................................. ..................................

51. Surplus adjustment: 51.1 Paid in........................................................................................................................................................................................ .................................. ..................................51.2 Transferred to capital (Stock Dividend)...................................................................................................................................... .................................. ..................................51.3 Transferred from capital............................................................................................................................................................. .................................. ..................................51.4 Change in surplus as a result of reinsurance.............................................................................................................................. .................................. ..................................

52. Dividends to stockholders.................................................................................................................................................................... ..............(74,000,000) ..............(59,000,000)53. Aggregate write-ins for gains and losses in surplus............................................................................................................................. ..............(10,412,645) ................(5,005,837)54. Net change in capital and surplus for the year (Lines 37 through 53)................................................................................................... ...............39,219,602 ................(8,248,889)55. Capital and surplus, December 31, current year (Lines 36 + 54) (Page 3, Line 38)............................................................................. .............561,533,548 .............522,313,946

DETAILS OF WRITE-INS08.301. Miscellaneous income................................................................................................................................................................ .................3,719,928 .................1,628,34608.302. ................................................................................................................................................................................................... .................................. ..................................08.303. ................................................................................................................................................................................................... .................................. ..................................08.398. Summary of remaining write-ins for Line 8.3 from overflow page............................................................................................... ...............................0 ...............................008.399. Totals (Lines 08.301 thru 08.303 plus 08.398) (Line 8.3 above)................................................................................................. .................3,719,928 .................1,628,3462701. ................................................................................................................................................................................................... .................................. ..................................2702. ................................................................................................................................................................................................... .................................. ..................................2703. ................................................................................................................................................................................................... .................................. ..................................2798. Summary of remaining write-ins for Line 27 from overflow page................................................................................................ ...............................0 ...............................02799. Totals (Lines 2701 thru 2703 plus 2798) (Line 27 above)........................................................................................................... ...............................0 ...............................05301. Minimum pension liability adjustment......................................................................................................................................... ...................(347,998) ................(7,510,277)5302. Change in accounting method - SSAP 10R................................................................................................................................ ..............(10,064,647) .................2,504,4405303. ................................................................................................................................................................................................... .................................. ..................................5398. Summary of remaining write-ins for Line 53 from overflow page................................................................................................ ...............................0 ...............................05399. Totals (Lines 5301 thru 5303 plus 5398) (Line 53 above)........................................................................................................... ..............(10,412,645) ................(5,005,837)


5

CASH FLOW1 2

Current Year Prior Year CASH FROM OPERATIONS

1. Premiums collected net of reinsurance............................................................................................................................... ................1,377,373,324 ................1,318,103,7552. Net investment income....................................................................................................................................................... ...................218,626,211 ...................181,408,5433. Miscellaneous income......................................................................................................................................................... .......................8,215,099 .......................5,456,3404. Total (Lines 1 through 3)..................................................................................................................................................... ................1,604,214,634 ................1,504,968,6385. Benefit and loss related payments...................................................................................................................................... ...................683,940,532 ...................649,180,2366. Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts................................................... .............................(4,013) .............................(3,749)7. Commissions, expenses paid and aggregate write-ins for deductions................................................................................. ...................325,125,760 ...................301,860,5418. Dividends paid to policyholders........................................................................................................................................... ........................................ ........................................9. Federal and foreign income taxes paid (recovered) net of $..........0 tax on capital gains (losses)....................................... .....................44,693,341 .....................30,139,637

10. Total (Lines 5 through 9)..................................................................................................................................................... ................1,053,755,620 ...................981,176,66511. Net cash from operations (Line 4 minus Line 10)................................................................................................................ ...................550,459,014 ...................523,791,973

CASH FROM INVESTMENTS 12. Proceeds from investments sold, matured or repaid:

12.1 Bonds........................................................................................................................................................................ ................3,001,702,683 ................2,298,293,86812.2 Stocks....................................................................................................................................................................... .....................10,142,651 ...................146,834,43412.3 Mortgage loans......................................................................................................................................................... .....................21,321,033 .....................10,679,67212.4 Real estate................................................................................................................................................................ ..........................123,129 .......................5,119,89412.5 Other invested assets............................................................................................................................................... .....................56,053,261 .....................39,402,86412.6 Net gains or (losses) on cash, cash equivalents and short-term investments............................................................ ..........................132,211 ..............................7,42012.7 Miscellaneous proceeds............................................................................................................................................ .....................14,885,624 .......................5,062,57212.8 Total investment proceeds (Lines 12.1 to 12.7)......................................................................................................... ................3,104,360,592 ................2,505,400,724

13. Cost of investments acquired (long-term only): 13.1 Bonds........................................................................................................................................................................ ................3,558,990,568 ................2,585,569,93413.2 Stocks....................................................................................................................................................................... .....................19,906,027 ...................191,636,89913.3 Mortgage loans......................................................................................................................................................... .....................21,501,067 .....................37,001,77813.4 Real estate................................................................................................................................................................ ........................................ ........................................13.5 Other invested assets............................................................................................................................................... .....................26,556,684 .....................60,083,44713.6 Miscellaneous applications........................................................................................................................................ .....................58,090,583 ....................(26,229,650)13.7 Total investments acquired (Lines 13.1 to 13.6)........................................................................................................ ................3,685,044,929 ................2,848,062,408

14. Net increase (decrease) in contract loans and premium notes............................................................................................ ...........................(14,788) ............................53,32715. Net cash from investments (Line 12.8 minus Lines 13.7 minus Line 14)............................................................................. ..................(580,669,549) ..................(342,715,011)

CASH FROM FINANCING AND MISCELLANEOUS SOURCES 16. Cash provided (applied):

16.1 Surplus notes, capital notes...................................................................................................................................... ........................................ ........................................16.2 Capital and paid in surplus, less treasury stock......................................................................................................... ........................................ ........................................16.3 Borrowed funds......................................................................................................................................................... ......................(4,105,750) ......................(4,134,358)16.4 Net deposits on deposit-type contracts and other insurance liabilities....................................................................... ..........................970,723 ....................(66,376,737)16.5 Dividends to stockholders......................................................................................................................................... .....................59,000,000 .....................54,000,00016.6 Other cash provided (applied)................................................................................................................................... ....................(13,651,503) ....................(46,138,007)

17. Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6)........................... ....................(75,786,530) ..................(170,649,102)

RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 18. Net change in cash, cash equivalents and short-term investments (Line 11 plus Line 15 plus Line 17)............................... ..................(105,997,065) .....................10,427,86019. Cash, cash equivalents and short-term investments:

19.1 Beginning of year...................................................................................................................................................... ...................175,177,305 ...................164,749,445

19.2 End of year (Line 18 plus Line 19.1).......................................................................................................................... .....................69,180,240 ...................175,177,305

Note: Supplemental disclosures of cash flow information for non-cash transactions:20.0001 Other long-term invested assets acquired in satisfaction of debt .............................................................................. .......................8,888,261 ........................................


6

ANALYSIS OF OPERATIONS BY LINES OF BUSINESS1 2 Ordinary 6 Group Accident and Health 12

3 4 5 Credit Life 7 8 9 10 11 Aggregate ofIndustrial Life Individual Supplementary (Group and Life Credit (Group All Other Lines

Total Life Insurance Annuities Contracts Individual) Insurance(a) Annuities Group and Individual) Other of Business1. Premiums and annuity considerations for life and accident and health contracts............................................................. ...1,386,581,460 ......................... ........1,040,783 ....406,068,572 ......................... ......................... ....185,977,058 ....112,403,295 ....680,967,165 ......................... ...........124,587 .....................2. Considerations for supplementary contracts with life contingencies................................................................................. .............858,744 ......................... ......................... ......................... ...........858,744 ......................... ......................... ......................... ......................... ......................... ......................... .....................3. Net investment income...................................................................................................................................................... ......253,816,376 ......................... ...........413,880 ....101,247,581 ........3,867,155 ......................... ......13,911,353 ......39,270,339 ......95,106,068 ......................... ......................... .....................4. Amortization of Interest Maintenance Reserve (IMR)........................................................................................................ ..........8,209,387 ......................... .............13,386 ........3,274,732 ...........125,079 ......................... ...........449,946 ........1,270,152 ........3,076,092 ......................... ......................... .....................5. Separate Accounts net gain from operations excluding unrealized gains or losses.......................................................... ........................0 ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... .....................6. Commissions and expense allowances on reinsurance ceded......................................................................................... ..........2,588,378 ......................... ...........367,457 ......................... ......................... ......................... .......(1,502,013) ......................... ........3,722,934 ......................... ......................... .....................7. Reserve adjustments on reinsurance ceded..................................................................................................................... ........................0 ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... .....................8. Miscellaneous Income:

8.1 Fees associated with income from investment management, administration and contract guarantees from S/A..... ..........1,922,125 ......................... ........1,922,125 ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... .....................8.2 Charges and fees for deposit-type contracts............................................................................................................. ........................0 ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... .....................8.3 Aggregate write-ins for miscellaneous income.......................................................................................................... ..........3,719,928 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ........3,719,928 ......................0 ......................0 ..................0

9. Totals (Lines 1 to 8.3)........................................................................................................................................................ ...1,657,696,398 ......................0 ........3,757,631 ....510,590,885 ........4,850,978 ......................0 ....198,836,344 ....152,943,786 ....786,592,187 ......................0 ...........124,587 ..................010. Death benefits................................................................................................................................................................... ........54,600,187 ......................... ........2,737,358 ......................... ......................... ......................... ......51,862,829 ......................... ......................... ......................... ......................... .....................11. Matured endowments (excluding guaranteed annual pure endowments)......................................................................... ........................0 ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... .....................12. Annuity benefits................................................................................................................................................................. ........44,146,822 ......................... ......................... ......34,293,051 ......................... ......................... ......................... ........9,853,771 ......................... ......................... ......................... .....................13. Disability benefits and benefits under accident and health contracts................................................................................ ......494,065,419 ......................... ...............3,942 ......................... ......................... ......................... ......................... ......................... ....493,879,357 ......................... ...........182,120 .....................14. Coupons, guaranteed annual pure endowments and similar benefits............................................................................... ........................0 ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... .....................15. Surrender benefits and withdrawals for life contracts........................................................................................................ ......127,262,725 ......................... ...........128,321 ......85,929,208 ......................... ......................... ......................... ......41,205,196 ......................... ......................... ......................... .....................16. Group conversions............................................................................................................................................................ ........................0 ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... .....................17. Interest and adjustments on contract or deposit-type contract funds................................................................................ ..........2,530,728 ......................... ...........198,983 ...........439,507 ........1,648,853 ......................... ...........290,788 ..........(105,627) .............58,224 ......................... ......................... .....................18. Payments on supplementary contracts with life contingencies.......................................................................................... ..........1,692,169 ......................... ......................... ......................... ........1,692,169 ......................... ......................... ......................... ......................... ......................... ......................... .....................19. Increase in aggregate reserves for life and accident and health contracts........................................................................ ......471,030,572 ......................... ..........(330,680) ....321,615,240 ..........(115,609) ......................... ........8,620,254 ......79,548,665 ......61,692,702 ......................... ......................... .....................20. Totals (Lines 10 to 19)....................................................................................................................................................... ...1,195,328,622 ......................0 ........2,737,924 ....442,277,006 ........3,225,413 ......................0 ......60,773,871 ....130,502,005 ....555,630,283 ......................0 ...........182,120 ..................021. Commissions on premiums, annuity considerations and deposit-type contract funds (direct business only).................... ......133,356,472 ......................... ...........379,902 ......22,461,280 ......................... ......................... ......34,129,717 ........5,771,412 ......70,614,116 ......................... ....................45 .....................22. Commissions and expense allowances on reinsurance assumed.................................................................................... ..........1,993,430 ......................... ......................... ........1,380,822 ......................... ......................... ......................... ...........194,287 ...........418,321 ......................... ......................... .....................23. General insurance expenses............................................................................................................................................. ......151,972,637 ......................... ...........926,187 ........5,387,218 ...........260,447 ......................... ......38,826,517 ........1,988,443 ....104,583,825 ......................... ......................... .....................24. Insurance taxes, licenses and fees, excluding federal income taxes............................................................................... ........29,046,358 ......................... .............12,216 ...........879,792 ......................... ......................... ......10,148,655 ......................... ......18,005,695 ......................... ......................... .....................25. Increase in loading on deferred and uncollected premiums.............................................................................................. ..........1,634,597 ......................... .............10,605 ......................... ......................... ......................... ...........428,355 ......................... ........1,195,637 ......................... ......................... .....................26. Net transfers to or (from) Separate Accounts net of reinsurance...................................................................................... ................(4,026) ......................... ..............(4,026) ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... .....................27. Aggregate write-ins for deductions.................................................................................................................................... ........................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ..................028. Totals (Lines 20 to 27)....................................................................................................................................................... ...1,513,328,090 ......................0 ........4,062,808 ....472,386,118 ........3,485,860 ......................0 ....144,307,115 ....138,456,147 ....750,447,877 ......................0 ...........182,165 ..................029. Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28)................ ......144,368,308 ......................0 ..........(305,177) ......38,204,767 ........1,365,118 ......................0 ......54,529,229 ......14,487,639 ......36,144,310 ......................0 ............(57,578) ..................030. Dividends to policyholders................................................................................................................................................. ........................0 ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... .....................31. Net gain from operations after dividends to policyholders and before federal income taxes (Line 29 minus Line 30)...... ......144,368,308 ......................0 ..........(305,177) ......38,204,767 ........1,365,118 ......................0 ......54,529,229 ......14,487,639 ......36,144,310 ......................0 ............(57,578) ..................032. Federal income taxes incurred (excluding tax on capital gains)........................................................................................ ........35,498,596 ......................... ............(75,040) ........9,394,137 ...........335,668 ......................... ......12,919,207 ........3,562,353 ........9,376,429 ......................... ............(14,158) .....................33. Net gain from operations after dividends to policyholders and federal income taxes and before realized

capital gains or (losses) (Line 31 minus Line 32).............................................................................................................. ......108,869,712 ......................0 ..........(230,137) ......28,810,630 ........1,029,450 ......................0 ......41,610,022 ......10,925,286 ......26,767,881 ......................0 ............(43,420) ..................0DETAILS OF WRITE-INS

08.301. ................................................................................................................................................................................... ..........3,719,928 ......................... ......................... ......................... ......................... ......................... ......................... ......................... ........3,719,928 ......................... ......................... .....................08.302. ................................................................................................................................................................................... ........................0 ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... .....................08.303. ................................................................................................................................................................................... ........................0 ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... .....................08.398. Summary of remaining write-ins for Line 8.3 from overflow page.............................................................................. ........................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ..................008.399. Total (Lines 08.301 thru 08.303 plus 08.398) (Line 8.3 above)................................................................................. ..........3,719,928 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ........3,719,928 ......................0 ......................0 ..................02701. ................................................................................................................................................................................... ........................0 ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... .....................2702. ................................................................................................................................................................................... ........................0 ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... .....................2703. ................................................................................................................................................................................... ........................0 ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... .....................2798. Summary of remaining write-ins for Line 27 from overflow page............................................................................... ........................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ..................02799. Total (Lines 2701 thru 2703 plus 2798) (Line 27 above)........................................................................................... ........................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ......................0 ..................0

(a) Includes the following amounts for FEGLI/SGLI: Line 1..........0 Line 10..........0 Line 16..........0 Line 23..........0 Line 24..........0.


7

ANALYSIS OF INCREASE IN RESERVES DURING THE YEAR1 2 Ordinary 6 Group

3 4 5 Credit Life 7 8Industrial Supplementary (Group and

Total Life Life Insurance Individual Annuities Contracts Individual) Life Insurance Annuities

Involving Life or Disability Contingencies (Reserves)

(Net of Reinsurance Ceded)

1. Reserve December 31, prior year.................................................................................................. ................2,176,970,523 ....................................... ......................5,075,933 ...............1,450,928,517 ....................12,271,487 ....................................... ..................126,048,676 ..................582,645,910

2. Tabular net premiums or considerations........................................................................................ ...................684,985,693 ....................................... ......................1,605,761 ..................406,068,572 .........................858,744 ....................................... ..................164,049,321 ..................112,403,295

3. Present value of disability claims incurred..................................................................................... ......................8,712,462 ....................................... ....................................... ....................................... ...............XXX................. ....................................... ......................8,712,462 .......................................

4. Tabular interest............................................................................................................................. ...................122,555,336 ....................................... .........................229,776 ....................85,835,730 .........................880,081 ....................................... .........................112,239 ....................35,497,510

5. Tabular less actual reserve released............................................................................................. .................(194,647,485) ....................................... ....................................... .................(136,039,679) ........................(162,265) ....................................... ....................................... ...................(58,445,541)

6. Increase in reserve on account of change in valuation basis.......................................................... ....................................0 ....................................... ....................................... ....................................... ....................................... ....................................... ....................................... .......................................

7. Other increases (net)..................................................................................................................... ....................................0 ....................................... ....................................... ....................................... ....................................... ....................................... ....................................... .......................................

8. Totals (Lines 1 to 7)....................................................................................................................... ................2,798,576,529 ....................................0 ......................6,911,470 ...............1,806,793,140 ....................13,848,047 ....................................0 ..................298,922,698 ..................672,101,174

9. Tabular cost................................................................................................................................... ...................163,728,326 ....................................... ......................1,486,483 ....................................... ...............XXX................. ....................................... ..................162,241,843 .......................................

10. Reserves released by death.......................................................................................................... .........................648,068 ....................................... .........................547,472 ...............XXX................. ...............XXX................. ....................................... .........................100,596 ...............XXX.................

11. Reserves released by other terminations (net)............................................................................... ......................2,039,648 ....................................... .........................128,321 ....................................... ....................................... ....................................... ......................1,911,327 .......................................

12. Annuity, supplementary contract, and disability payments involving life contingencies.................. ....................45,842,932 ....................................... .............................3,942 ....................34,293,051 ......................1,692,169 ....................................... ....................................... ......................9,853,770

13. Net transfers to or (from) Separate Accounts................................................................................. ....................................0 ....................................... ....................................... ....................................... ....................................... ....................................... ....................................... .......................................

14. Total deductions (Lines 9 to 13)..................................................................................................... ...................212,258,974 ....................................0 ......................2,166,218 ....................34,293,051 ......................1,692,169 ....................................0 ..................164,253,766 ......................9,853,770

15. Reserve December 31, current year.............................................................................................. ................2,586,317,555 ....................................0 ......................4,745,252 ...............1,772,500,089 ....................12,155,878 ....................................0 ..................134,668,932 ..................662,247,404


8

EXHIBIT OF NET INVESTMENT INCOME1 2

Collected EarnedDuring Year During Year

1. U.S. government bonds................................................................................................................................................... (a)...........................8,172,638 ...............................8,143,1561.1 Bonds exempt from U.S. tax............................................................................................................................................ (a)........................................... ................................................1.2 Other bonds (unaffiliated)................................................................................................................................................ (a).......................268,081,364 ...........................270,151,5691.3 Bonds of affiliates............................................................................................................................................................ (a)........................................... ................................................2.1 Preferred stocks (unaffiliated).......................................................................................................................................... (b)...........................2,303,621 ...............................2,303,6212.11 Preferred stocks of affiliates............................................................................................................................................. (b)........................................... ................................................2.2 Common stocks (unaffiliated).......................................................................................................................................... ...............................5,446,767 ...............................4,478,5102.21 Common stocks of affiliates............................................................................................................................................. ...............................4,000,000 ...............................4,000,0003. Mortgage loans................................................................................................................................................................ (c)...........................6,336,948 ...............................7,196,7114. Real estate...................................................................................................................................................................... (d).................................3,246 ......................................3,2465. Contract loans................................................................................................................................................................. ....................................21,446 ....................................21,4466. Cash, cash equivalents and short-term investments........................................................................................................ (e)..............................412,804 ..................................776,2667. Derivative instruments..................................................................................................................................................... (f)............................................ ................................................8. Other invested assets...................................................................................................................................................... .............................16,625,077 .............................16,625,0779. Aggregate write-ins for investment income...................................................................................................................... ...................................(20,817) ...................................(20,817)

10. Total gross investment income........................................................................................................................................ ...........................311,383,094 ...........................313,678,78411. Investment expenses......................................................................................................................................................................................................... (g).........................55,491,81212. Investment taxes, licenses and fees, excluding federal income taxes................................................................................................................................. (g)..............................213,78413. Interest expense................................................................................................................................................................................................................. (h)...........................4,156,81214. Depreciation on real estate and other invested assets....................................................................................................................................................... (i).........................................015. Aggregate write-ins for deductions from investment income............................................................................................................................................... .............................................016. Total deductions (Lines 11 through 15).............................................................................................................................................................................. .............................59,862,40817. Net investment income (Line 10 minus Line 16)................................................................................................................................................................. ...........................253,816,376

DETAILS OF WRITE-INS0901. Miscellaneous.................................................................................................................................................................. ...................................(20,817) ...................................(20,817)0902. ........................................................................................................................................................................................ ................................................ ................................................0903. ........................................................................................................................................................................................ ................................................ ................................................0998. Summary of remaining write-ins for Line 9 from overflow page........................................................................................ .............................................0 .............................................00999. Totals (Lines 0901 thru 0903 plus 0998) (Line 9 above)................................................................................................... ...................................(20,817) ...................................(20,817)1501. .......................................................................................................................................................................................................................................... ................................................1502. .......................................................................................................................................................................................................................................... ................................................1503. .......................................................................................................................................................................................................................................... ................................................1598. Summary of remaining write-ins for Line 15 from overflow page........................................................................................................................................ .............................................01599. Totals (Lines 1501 thru 1503 plus 1598) (Line 15 above)................................................................................................................................................... .............................................0

(a) Includes $.....65,282,190 accrual of discount less $.....15,134,863 amortization of premium and less $.....15,910,554 paid for accrued interest on purchases. (b) Includes $..........0 accrual of discount less $..........0 amortization of premium and less $..........0 paid for accrued dividends on purchases. (c) Includes $.....871,547 accrual of discount less $.....11,783 amortization of premium and less $..........0 paid for accrued interest on purchases. (d) Includes $..........0 for company's occupancy of its own buildings; and excludes $..........0 interest on encumbrances. (e) Includes $.....61,603 accrual of discount less $.....127,318 amortization of premium and less $.....373,565 paid for accrued interest on purchases. (f) Includes $..........0 accrual of discount less $..........0 amortization of premium. (g) Includes $..........0 investment expenses and $..........0 investment taxes, licenses and fees, excluding federal income taxes, attributable to Segregated and Separate Accounts. (h) Includes $..........0 interest on surplus notes and $..........0 interest on capital notes. (i) Includes $..........0 depreciation on real estate and $..........0 depreciation on other invested assets.

EXHIBIT OF CAPITAL GAINS (LOSSES)1 2 3 4 5

Realized Change inGain (Loss) Other Total Realized Change in Unrealized

on Sales Realized Capital Gain (Loss) Unrealized Foreign Exchangeor Maturity Adjustments (Columns 1 + 2) Capital Gain (Loss) Capital Gain (Loss)

1. U.S. government bonds............................................................. ..................3,232,428 .................................. ..................3,232,428 .......................(6,224) ..................................1.1 Bonds exempt from U.S. tax...................................................... .................................. .................................. ...............................0 .................................. ..................................1.2 Other bonds (unaffiliated).......................................................... ................59,152,023 ...............(18,874,103) ................40,277,920 ..................5,093,419 ..................8,965,5891.3 Bonds of affiliates...................................................................... .................................. .................................. ...............................0 .................................. ..................................2.1 Preferred stocks (unaffiliated).................................................... .....................505,539 .................................. .....................505,539 .................................. ..................................2.11 Preferred stocks of affiliates...................................................... .................................. .................................. ...............................0 .................................. ..................................2.2 Common stocks (unaffiliated).................................................... .....................865,880 .....................(11,327) .....................854,553 ..................1,137,434 ..................................2.21 Common stocks of affiliates....................................................... .................................. .................................. ...............................0 ..................3,128,352 ..................................3. Mortgage loans.......................................................................... .................................. .................................. ...............................0 .................................. ..................................4. Real estate................................................................................ .......................(1,223) .................................. .......................(1,223) .................................. ..................................5. Contract loans........................................................................... .................................. .................................. ...............................0 .................................. ..................................6. Cash, cash equivalents and short-term investments.................. .....................132,211 ...................(545,238) ...................(413,027) .........................6,393 ...................(185,285)7. Derivative instruments............................................................... .................(5,083,977) .................................. .................(5,083,977) .....................902,639 ..................................8. Other invested assets................................................................ ...............(21,766,022) .................................. ...............(21,766,022) ................19,237,678 ..................................9. Aggregate write-ins for capital gains (losses)............................. ...............................0 .......................(5,082) .......................(5,082) ...............................0 ...................(639,546)

10. Total capital gains (losses)........................................................ ................37,036,859 ...............(19,435,750) ................17,601,109 ................29,499,690 ..................8,140,758DETAILS OF WRITE-INS

0901. Foreign Currency....................................................................... .................................. .......................(5,082) .......................(5,082) .................................. ...................(639,546)0902. .................................................................................................. .................................. .................................. ...............................0 .................................. ..................................0903. .................................................................................................. .................................. .................................. ...............................0 .................................. ..................................0998. Summary of remaining write-ins for Line 9 from overflow page.. ...............................0 ...............................0 ...............................0 ...............................0 ...............................00999. Totals (Lines 0901 thru 0903 plus 0998) (Line 9 above)............ ...............................0 .......................(5,082) .......................(5,082) ...............................0 ...................(639,546)


9

EXHIBIT 1 - PART 1 - PREMIUMS AND ANNUITY CONSIDERATIONS FOR LIFE AND ACCIDENT AND HEALTH CONTRACTS1 2 Ordinary 5 Group Accident and Health 11

3 4 Credit Life 6 7 8 9 10 Aggregate ofIndustrial Individual (Group and Credit All Other Lines

Total Life Life Insurance Annuities Individual) Life Insurance Annuities Group (Group & Individual) Other of BusinessFIRST YEAR (other than single)

1. Uncollected.......................................................................... ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................ 2. Deferred and accrued.......................................................... ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................ 3. Deferred, accrued and uncollected:

3.1 Direct............................................................................ ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................3.2 Reinsurance assumed.................................................. ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................3.3 Reinsurance ceded....................................................... ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................3.4 Net (Line 1 + Line 2)..................................................... ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 .............................0 .............................0 .............................0 .........................0

4. Advance............................................................................... ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................ 5. Line 3.4 - Line 4................................................................... ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 .............................0 .............................0 .............................0 .........................0 6. Collected during year:

6.1 Direct............................................................................ ....................573,545 .................................. ....................573,545 .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................6.2 Reinsurance assumed.................................................. ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................6.3 Reinsurance ceded....................................................... ....................295,539 .................................. ....................295,539 .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................6.4 Net................................................................................ ....................278,006 ...............................0 ....................278,006 ...............................0 ...............................0 ...............................0 ...............................0 .............................0 .............................0 .............................0 .........................0

7. Line 5 + Line 6.4.................................................................. ....................278,006 ...............................0 ....................278,006 ...............................0 ...............................0 ...............................0 ...............................0 .............................0 .............................0 .............................0 .........................0 8. Prior year (uncollected + deferred and accrued - advance).. ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................ 9. First year premiums and considerations:

9.1 Direct............................................................................ ....................573,545 .................................. ....................573,545 .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................9.2 Reinsurance assumed.................................................. ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................9.3 Reinsurance ceded....................................................... ....................295,539 .................................. ....................295,539 .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................9.4 Net (Line 7 - Line 8)...................................................... ....................278,006 ...............................0 ....................278,006 ...............................0 ...............................0 ...............................0 ...............................0 .............................0 .............................0 .............................0 .........................0

SINGLE10. Single premiums and considerations:

10.1 Direct.......................................................................... .............513,829,569 .................................. .................................. .............403,749,937 .................................. .................................. .............110,079,632 ................................ ................................ ................................ ............................10.2 Reinsurance assumed................................................. ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................10.3 Reinsurance ceded..................................................... ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................10.4 Net.............................................................................. .............513,829,569 ...............................0 ...............................0 .............403,749,937 ...............................0 ...............................0 .............110,079,632 .............................0 .............................0 .............................0 .........................0

RENEWAL11. Uncollected.......................................................................... ...............73,494,783 .................................. ......................74,996 .................................. .................................. ...............24,831,356 .................................. .............48,586,256 ................................ ......................2,175 ............................12. Deferred and accrued.......................................................... ....................307,098 .................................. ....................307,098 .................................. .................................. .................................. .................................. ................................ ................................ ................................ ............................13. Deferred, accrued and uncollected:

13.1 Direct.......................................................................... ...............69,634,051 .................................. .................1,520,240 .................................. .................................. ...............26,661,414 .................................. .............41,450,222 ................................ ......................2,175 ............................13.2 Reinsurance assumed................................................. ...............10,349,808 .................................. ......................67,621 .................................. .................................. .................................. .................................. .............10,282,187 ................................ ................................ ............................13.3 Reinsurance ceded..................................................... .................6,181,978 .................................. .................1,205,767 .................................. .................................. .................1,830,058 .................................. ...............3,146,153 ................................ ................................ ............................13.4 Net (Line 11 + Line 12)............................................... ...............73,801,881 ...............................0 ....................382,094 ...............................0 ...............................0 ...............24,831,356 ...............................0 .............48,586,256 .............................0 ......................2,175 .........................0

14. Advance............................................................................... ....................241,697 .................................. ......................78,665 .................................. .................................. .................................. .................................. ..................162,975 ................................ ...........................57 ............................15. Line 13.4 - Line 14............................................................... ...............73,560,184 ...............................0 ....................303,429 ...............................0 ...............................0 ...............24,831,356 ...............................0 .............48,423,281 .............................0 ......................2,118 .........................016. Collected during year:

16.1 Direct.......................................................................... ...........1,113,873,869 .................................. .................5,084,117 .................1,636,934 .................................. .............423,008,608 ....................739,588 ............683,280,036 ................................ ..................124,586 ............................16.2 Reinsurance assumed................................................. ...............64,324,326 .................................. ....................203,495 .................1,606,905 .................................. ......................14,854 .................1,584,076 .............60,914,996 ................................ ................................ ............................16.3 Reinsurance ceded..................................................... .............315,791,188 .................................. .................4,537,286 ....................925,203 .................................. .............240,764,950 .................................. .............69,563,749 ................................ ................................ ............................16.4 Net.............................................................................. .............862,407,007 ...............................0 ....................750,326 .................2,318,636 ...............................0 .............182,258,512 .................2,323,664 ............674,631,283 .............................0 ..................124,586 .........................0

17. Line 15 + Line 16.4.............................................................. .............935,967,191 ...............................0 .................1,053,755 .................2,318,636 ...............................0 .............207,089,868 .................2,323,664 ............723,054,564 .............................0 ..................126,704 .........................018. Prior year (uncollected + deferred and accrued - advance).. ...............63,493,304 .................................. ....................290,978 .................................. .................................. ...............21,112,810 .................................. .............42,087,398 ................................ ......................2,118 ............................19. Renewal premiums and considerations:

19.1 Direct.......................................................................... ...........1,123,920,693 .................................. .................4,724,067 .................1,636,934 .................................. .............426,948,192 ....................739,588 ............689,747,326 ................................ ..................124,586 ............................19.2 Reinsurance assumed................................................. ...............64,137,282 .................................. ....................201,479 .................1,606,905 .................................. ......................14,854 .................1,584,076 .............60,729,968 ................................ ................................ ............................19.3 Reinsurance ceded..................................................... .............315,584,088 .................................. .................4,162,769 ....................925,203 .................................. .............240,985,988 .................................. .............69,510,128 ................................ ................................ ............................19.4 Net (Line 17 - Line 18)................................................ .............872,473,887 ...............................0 ....................762,777 .................2,318,636 ...............................0 .............185,977,058 .................2,323,664 ............680,967,166 .............................0 ..................124,586 .........................0

TOTAL20. Total premiums and annuity considerations:

20.1 Direct.......................................................................... ...........1,638,323,807 ...............................0 .................5,297,612 .............405,386,871 ...............................0 .............426,948,192 .............110,819,220 ............689,747,326 .............................0 ..................124,586 .........................020.2 Reinsurance assumed................................................. ...............64,137,282 ...............................0 ....................201,479 .................1,606,905 ...............................0 ......................14,854 .................1,584,076 .............60,729,968 .............................0 .............................0 .........................020.3 Reinsurance ceded..................................................... .............315,879,627 ...............................0 .................4,458,308 ....................925,203 ...............................0 .............240,985,988 ...............................0 .............69,510,128 .............................0 .............................0 .........................020.4 Net (Lines 9.4 + 10.4 + 19.4)....................................... ...........1,386,581,462 ...............................0 .................1,040,783 .............406,068,573 ...............................0 .............185,977,058 .............112,403,296 ............680,967,166 .............................0 ..................124,586 .........................0


10

EXHIBIT 1 - PART 2 - DIVIDENDS AND COUPONS APPLIED, REINSURANCE COMMISSIONS AND EXPENSE ALLOWANCES AND COMMISSIONS INCURRED (direct business only)1 2 Ordinary 5 Group Accident and Health 11

3 4 Credit Life 6 7 8 9 10 Aggregate ofIndustrial Individual (Group and Credit All Other Lines

Total Life Life Insurance Annuities Individual) Life Insurance Annuities Group (Group & Individual) Other of Business

DIVIDENDS AND COUPONS APPLIED (included in Part 1)

21. To pay renewal premiums.......................................... ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. ................................

22. All other...................................................................... ......................36,834 .................................. ......................36,834 .................................. .................................. .................................. .................................. .................................. .................................. .................................. ................................

REINSURANCE COMMISSIONS AND EXPENSE ALLOWANCES INCURRED

23. First year (other than single):

23.1 Reinsurance ceded............................................ ....................361,727 .................................. ....................361,727 .................................. .................................. .................................. .................................. .................................. .................................. .................................. ................................

23.2 Reinsurance assumed....................................... ....................407,000 .................................. .................................. ....................407,000 .................................. .................................. .................................. .................................. .................................. .................................. ................................

23.3 Net ceded less assumed................................... .....................(45,273) ...............................0 ....................361,727 ...................(407,000) ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 .............................0

24. Single:

24.1 Reinsurance ceded............................................ ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. ................................

24.2 Reinsurance assumed....................................... ....................973,822 .................................. .................................. ....................973,822 .................................. .................................. .................................. .................................. .................................. .................................. ................................

24.3 Net ceded less assumed................................... ...................(973,822) ...............................0 ...............................0 ...................(973,822) ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 .............................0

25. Renewal:

25.1 Reinsurance ceded............................................ .................2,226,651 .................................. ........................5,730 .................................. .................................. ................(1,502,013) .................................. .................3,722,934 .................................. .................................. ................................

25.2 Reinsurance assumed....................................... ....................612,608 .................................. .................................. .................................. .................................. .................................. ....................194,287 ....................418,321 .................................. .................................. ................................

25.3 Net ceded less assumed................................... .................1,614,043 ...............................0 ........................5,730 ...............................0 ...............................0 ................(1,502,013) ...................(194,287) .................3,304,613 ...............................0 ...............................0 .............................0

26. Totals:

26.1 Reinsurance ceded (Page 6, Line 6)................. .................2,588,378 ...............................0 ....................367,457 ...............................0 ...............................0 ................(1,502,013) ...............................0 .................3,722,934 ...............................0 ...............................0 .............................0

26.2 Reinsurance assumed (Page 6, Line 22)........... .................1,993,430 ...............................0 ...............................0 .................1,380,822 ...............................0 ...............................0 ....................194,287 ....................418,321 ...............................0 ...............................0 .............................0

26.3 Net ceded less assumed................................... ....................594,948 ...............................0 ....................367,457 ................(1,380,822) ...............................0 ................(1,502,013) ...................(194,287) .................3,304,613 ...............................0 ...............................0 .............................0

COMMISSIONS INCURRED (direct business only)

27. First year (other than single)...................................... ....................594,172 .................................. ....................374,172 ....................220,000 .................................. .................................. .................................. .................................. .................................. .................................. ................................

28. Single......................................................................... ...............22,154,849 .................................. .................................. ...............22,154,849 .................................. .................................. .................................. .................................. .................................. .................................. ................................

29. Renewal..................................................................... .............110,607,451 .................................. ........................5,730 ......................86,431 .................................. ...............34,129,717 .................5,771,412 ...............70,614,116 .................................. .............................45 ................................

30. Deposit-type contract funds........................................ ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. ................................

31. Totals (to agree with Page 6, Line 21)........................ .............133,356,472 ...............................0 ....................379,902 ...............22,461,280 ...............................0 ...............34,129,717 .................5,771,412 ...............70,614,116 ...............................0 .............................45 .............................0


11

EXHIBIT 2 - GENERAL EXPENSESInsurance 5 6

1 Accident and Health 42 3 All Other Lines

Life Cost Containment All Other of Business Investment Total1. Rent............................................................................................. ...........3,072,794 ............................ ...........5,982,366 ............................ ...........9,457,543 .........18,512,7032. Salaries and wages..................................................................... .........27,059,470 ...........1,527,274 .........54,325,440 ............................ .........34,069,722 .......116,981,906

3.11 Contributions for benefit plans for employees.............................. ...........4,054,141 ..............228,821 ...........8,139,205 ............................ ...........2,463,682 .........14,885,8493.12 Contributions for benefit plans for agents..................................... ............................ ............................ ............................ ............................ ............................ ........................03.21 Payments to employees under non-funded benefit plans............. ............................ ............................ ............................ ............................ ............................ ........................03.22 Payments to agents under non-funded benefit plans................... ............................ ............................ ............................ ............................ ............................ ........................03.31 Other employee welfare............................................................... ..............495,984 ................27,994 ..............995,751 ............................ ..............810,880 ...........2,330,6093.32 Other agent welfare..................................................................... ............................ ............................ ............................ ............................ ............................ ........................04.1 Legal fees and expenses............................................................. ..............124,569 ............................ ..............313,966 ............................ ................33,159 ..............471,6944.2 Medical examination fees............................................................ ..............(23,549) ............................ ............................ ............................ ............................ ..............(23,549)4.3 Inspection report fees.................................................................. ................18,883 ............................ ................43,644 ............................ ............................ ................62,5274.4 Fees of public accountants and consulting actuaries................... ..............502,728 ............................ ...........1,117,632 ............................ ..............325,765 ...........1,946,1254.5 Expense of investigation and settlement of policy claims............. ..............417,104 ...........1,511,199 ...........2,523,016 ............................ ............................ ...........4,451,3195.1 Traveling expenses...................................................................... ...........1,338,209 ..................6,292 ...........2,870,996 ............................ ...........1,054,132 ...........5,269,6295.2 Advertising................................................................................... ..............694,981 ............................ ..............416,294 ............................ ................10,152 ...........1,121,4275.3 Postage, express, telegraph and telephone................................. ..............932,855 ......................25 ...........1,448,032 ............................ ..............386,377 ...........2,767,2895.4 Printing and stationery................................................................. ..............489,481 ..................3,100 ..............846,438 ............................ ..............137,804 ...........1,476,8235.5 Cost or depreciation of furniture and equipment.......................... ...........1,302,991 ............................ ...........1,760,210 ............................ ..............263,220 ...........3,326,4215.6 Rental of equipment.................................................................... ...........2,527,186 ............................ ...........5,106,336 ............................ ...........1,176,191 ...........8,809,7135.7 Cost or depreciation of EDP equipment and software.................. ..............260,719 ............................ ..............501,616 ............................ ................17,440 ..............779,7756.1 Books and periodicals.................................................................. ................21,742 .....................950 ................45,431 ............................ ................30,992 ................99,1156.2 Bureau and association fees........................................................ ................62,815 .....................722 ..............103,929 ............................ ..............167,845 ..............335,3116.3 Insurance, except on real estate.................................................. ..............145,662 ............................ ..............145,662 ............................ ..............219,470 ..............510,7946.4 Miscellaneous losses................................................................... ............................ ............................ ............................ ............................ ............................ ........................06.5 Collection and bank service charges............................................ ..............215,955 ............................ ..............268,347 ............................ ..............427,584 ..............911,8866.6 Sundry general expenses............................................................ ..................4,590 ............................ ................21,934 ............................ ..............521,815 ..............548,3396.7 Group service and administration fees......................................... ...........1,134,449 ............................ .........10,400,381 ............................ ............................ .........11,534,8306.8 Reimbursements by uninsured plans........................................... ............................ ............................ ............................ ............................ ............................ ........................07.1 Agency expense allowance......................................................... ............................ ............................ ............................ ............................ ............................ ........................07.2 Agents' balances charged off (less $..........0 recovered).............. ............................ ............................ ............................ ............................ ............................ ........................07.3 Agency conferences other than local meetings............................ ..............338,350 ............................ ..............611,593 ............................ ............................ ..............949,9439.1 Real estate expenses.................................................................. ............................ ............................ ............................ ............................ ............................ ........................09.2 Investment expenses not included elsewhere.............................. ............................ ............................ ............................ ............................ ............................ ........................09.3 Aggregate write-ins for expenses................................................. ...........2,196,703 ................23,954 ...........3,265,275 ........................0 ...........3,918,039 ...........9,403,97110. General expenses Incurred.......................................................... .........47,388,812 ...........3,330,331 .......101,253,494 ........................0 .........55,491,812 (a)...207,464,44911. General expenses unpaid December 31, prior year..................... .........10,207,495 ............................ .........15,915,614 ............................ ...........4,540,829 .........30,663,93812. General expenses unpaid December 31, current year................. ...........7,360,593 ................12,000 ...........9,620,705 ............................ .........21,285,240 .........38,278,53813. Amounts receivable relating to uninsured plans, prior year.......... ............................ ............................ ............................ ............................ ............................ ........................014. Amounts receivable relating to uninsured plans, current year...... ............................ ............................ ............................ ............................ ............................ ........................015. General expenses paid during year (Lines 10 + 11 - 12 - 13 + 14) .........50,235,714 ...........3,318,331 .......107,548,403 ........................0 .........38,747,401 .......199,849,849

DETAILS OF WRITE-INS09.301. Computer Services...................................................................... ...........1,784,295 ..................2,771 ...........2,111,134 ............................ ...........1,095,139 ...........4,993,33909.302. Consulting................................................................................... ..............412,408 ................21,183 ...........1,154,141 ............................ ...........2,822,900 ...........4,410,63209.303. .................................................................................................... ............................ ............................ ............................ ............................ ............................ ........................009.398. Summary of remaining write-ins for Line 9.3 from overflow page. ........................0 ........................0 ........................0 ........................0 ........................0 ........................009.399. Totals (Lines 09.301 thru 09.303 plus 09.398)(Line 9.3 above).... ...........2,196,703 ................23,954 ...........3,265,275 ........................0 ...........3,918,039 ...........9,403,971

(a) Includes management fees of $.....7,879,919 to affiliates and $..........0 to non-affiliates.

EXHIBIT 3 - TAXES, LICENSES AND FEES (EXCLUDING FEDERAL INCOME TAXES)Insurance 4 5

1 2 3Accident All Other Lines

Life and Health of Business Investment Total1. Real estate taxes................................................................................................... ............................ ............................ ............................ ............................ .........................02. State insurance department licenses and fees....................................................... ............1,367,768 ............1,744,621 ............................ ............................ ............3,112,3893. State taxes on premiums....................................................................................... ............7,582,225 ..........11,689,102 ............................ ............................ ..........19,271,3274. Other state taxes, including $..........0 for employee benefits.................................. ..............407,422 ..............660,678 ............................ ................15,821 ............1,083,9215. U.S. Social Security taxes...................................................................................... ............1,623,295 ............3,834,821 ............................ ..............197,963 ............5,656,0796. All other taxes........................................................................................................ ................59,954 ................76,472 ............................ ............................ ..............136,4267. Taxes, licenses and fees incurred.......................................................................... ..........11,040,664 ..........18,005,694 .........................0 ..............213,784 ..........29,260,1428. Taxes, licenses and fees unpaid December 31, prior year..................................... ..............957,364 ............1,447,829 ............................ .................(2,039) ............2,403,1549. Taxes, licenses and fees unpaid December 31, current year................................. ..............892,992 ............1,885,149 ............................ ..................6,564 ............2,784,705

10. Taxes, licenses and fees paid during year (Lines 7 + 8 - 9).................................... ..........11,105,036 ..........17,568,374 .........................0 ..............205,181 ..........28,878,591

EXHIBIT 4 - DIVIDENDS OR REFUNDS1 2

Life Accident and Health1. Applied to pay renewal premiums.................................................................................................................................................. ........................................ ........................................2. Applied to shorten the endowment or premium-paying period........................................................................................................ ........................................ ........................................3. Applied to provide paid-up additions.............................................................................................................................................. ............................36,834 ........................................4. Applied to provide paid-up annuities.............................................................................................................................................. ........................................ ........................................5. Total Lines 1 through 4.................................................................................................................................................................. ............................36,834 .....................................06. Paid-in cash................................................................................................................................................................................... ..............................7,389 ........................................7. Left on deposit............................................................................................................................................................................... ........................................ ........................................8. Aggregate write-ins for dividend or refund options......................................................................................................................... ...........................(44,223) .....................................09. Total Lines 5 through 8.................................................................................................................................................................. .....................................0 .....................................0

10. Amount due and unpaid................................................................................................................................................................. ........................................ ........................................11. Provision for dividends or refunds payable in the following calendar year...................................................................................... ........................................ ........................................12. Terminal dividends......................................................................................................................................................................... ........................................ ........................................13. Provision for deferred dividend contracts....................................................................................................................................... ........................................ ........................................14. Amount provisionally held for deferred dividend contracts not included in Line 13.......................................................................... ........................................ ........................................15. Total Lines 10 through 14............................................................................................................................................................... .....................................0 .....................................016. Total from prior year....................................................................................................................................................................... ........................................ ........................................17. Total dividends or refunds (Lines 9 + 15 - 16)................................................................................................................................ .....................................0 .....................................0

DETAILS OF WRITE-INS0801. Dividends - reinsurance ceded....................................................................................................................................................... ...........................(44,223) ........................................0802. ...................................................................................................................................................................................................... ........................................ ........................................0803. ...................................................................................................................................................................................................... ........................................ ........................................0898. Summary of remaining write-ins for Line 8 from overflow page...................................................................................................... .....................................0 .....................................00899. Totals (Line 0801 thru 0803 plus 0898) (Line 8 above)................................................................................................................... ...........................(44,223) .....................................0


12

EXHIBIT 5 - AGGREGATE RESERVE FOR LIFE CONTRACTS1 2 3 4 5 6

Credit(Group and

Valuation Standard Total Industrial Ordinary Individual) GroupLife Insurance: 0100001. AE 2.25% NLP............................................................................................ .........................51 .............................. .........................51 .............................. ..............................0100002. AE 3.00% NLP........................................................................................... ................492,845 .............................. ................492,845 .............................. ..............................0100003. AE 3.50% NLP........................................................................................... .............3,241,440 .............................. .............3,241,440 .............................. ..............................0100004. AM MEN 3.50% NLP..................................................................................... ................103,946 ..................92,061 ..................11,885 .............................. ..............................0100005. 41 CSO 2.50% NLP....................................................................................... .............4,355,440 .............................. .............4,355,440 .............................. ..............................0100006. 41 CSO 3.00% NLP....................................................................................... ................919,289 .............................. ................919,289 .............................. ..............................0100007. 58 CET 2.25% NLP....................................................................................... ..................24,974 .............................. ..................24,974 .............................. ..............................0100008. 58 CET 2.75% NLP....................................................................................... ..................17,579 .............................. ..................17,579 .............................. ..............................0100009. 58 CET 3.00% NLP....................................................................................... ................185,531 .............................. ................185,531 .............................. ..............................0100010. 58 CET 3.50% NLP....................................................................................... ................589,114 .............................. ................589,114 .............................. ..............................0100011. 58 CET 3.75% NLP....................................................................................... ....................1,671 .............................. ....................1,671 .............................. ..............................0100012. 58 CET 4.00% NLP ...................................................................................... ..................50,446 .............................. ..................50,446 .............................. ..............................0100013. 58 CET 4.25% NLP ...................................................................................... ................109,866 .............................. ................109,866 .............................. ..............................0100014. 58 CET 4.50% NLP ...................................................................................... ....................6,087 .............................. ....................6,087 .............................. ..............................0100015. 58 CSO 2.25% NLP....................................................................................... .............1,093,954 .............................. .............1,093,954 .............................. ..............................0100016. 58 CSO 2.25% CRVM................................................................................... .............1,110,418 .............................. .............1,110,418 .............................. ..............................0100017. 58 CSO 2.75% NLP....................................................................................... ..................68,409 .............................. ..................68,409 .............................. ..............................0100018. 58 CSO 3.00% NLP....................................................................................... .............4,000,075 .............................. .............4,000,075 .............................. ..............................0100019. 58 CSO 3.00% CRVM ............................................................................... .............5,827,994 .............................. .............5,827,994 .............................. ..............................0100020. 58 CSO 3.50% NLP....................................................................................... ................416,393 .............................. ................416,393 .............................. ..............................0100021. 58 CSO 3.50% CRVM................................................................................... .............7,678,542 .............................. .............7,678,542 .............................. ..............................0100022. 58 CSO 3.75% NLP....................................................................................... ....................1,058 .............................. ....................1,058 .............................. ..............................0100023. 58 CSO 3.75% CRVM................................................................................... ................102,972 .............................. ................102,972 .............................. ..............................0100024. 58 CSO 4.00% NLP....................................................................................... ................285,248 .............................. ................285,248 .............................. ..............................0100025. 58 CSO 4.00% CRVM................................................................................... .............5,509,341 .............................. .............5,509,341 .............................. ..............................0100026. 58 CSO 4.25% NLP....................................................................................... ................150,502 .............................. ................150,502 .............................. ..............................0100027. 58 CSO 4.25% CRVM................................................................................... .............6,952,455 .............................. .............6,952,455 .............................. ..............................0100028. 58 CSO 4.50% NLP....................................................................................... ..................56,636 .............................. ..................56,636 .............................. ..............................0100029. 58 CSO 4.50% CRVM................................................................................... .............9,039,729 .............................. .............9,039,729 .............................. ..............................0100030. 58 CSO 5.50% CRVM................................................................................... .............3,238,536 .............................. .............3,238,536 .............................. ..............................0100031. 80 CET 4.00% NLP....................................................................................... ..................16,223 .............................. ..................16,223 .............................. ..............................0100032. 80 CET 4.50% NLP....................................................................................... ..................58,841 .............................. ..................58,841 .............................. ..............................0100033. 80 CET 5.50% NLP....................................................................................... ..................37,247 .............................. ..................37,247 .............................. ..............................0100034. 80 CET 6.00% NLP....................................................................................... .......................185 .............................. .......................185 .............................. ..............................0100035. 80 CSO 4.00% NLP....................................................................................... ................464,023 .............................. ..................49,661 .............................. ................414,3620100036. 80 CSO 4.00% CRVM................................................................................... .............2,568,756 .............................. .............2,568,756 .............................. ..............................0100037. 80 CSO 4.50% NLP....................................................................................... .............1,617,636 .............................. ..................38,320 .............................. .............1,579,3160100038. 80 CSO 4.50% CRVM................................................................................... .............2,311,701 .............................. .............2,311,701 .............................. ..............................0100039. 80 CSO 5.00% CRVM................................................................................... ................654,626 .............................. ................654,626 .............................. ..............................0100040. 80 CSO 5.00% NLP....................................................................................... ....................4,147 .............................. ....................4,147 .............................. ..............................0100041. 80 CSO 5.50% CRVM................................................................................... ...........11,347,485 .............................. ...........11,347,485 .............................. ..............................0100042. 80 CSO 5.50% NLP....................................................................................... ..................14,228 .............................. ..................14,228 .............................. ..............................0100043. 80 CSO 6.00% CRVM................................................................................... .............2,228,543 .............................. .............2,228,543 .............................. ..............................0100044. 80 CSO 6.25% CRVM................................................................................... ....................3,845 .............................. ....................3,845 .............................. ..............................0100045. 80 CSO 6.50% CRVM................................................................................... ................211,760 .............................. ................211,760 .............................. ..............................0100046. 2001 CSO 4.00% CRVM(NB) .......................................................................... ................190,196 .............................. ................190,196 .............................. ..............................0100047. 2001 CSO 4.00% NLP (NB)............................................................................. ..................42,652 .............................. .......................226 .............................. ..................42,4260100048. 2001 CSO 4.25% NLP (NB)............................................................................. ................506,821 .............................. .............................. .............................. ................506,8210100049. 2001 CSO 4.50% NLP (NB)............................................................................. .............1,232,081 .............................. .............................. .............................. .............1,232,0810100050. UNEARNED PREMIUM............................................................................................. .............2,229,384 .............................. ................500,000 .............................. .............1,729,3840100051. STD IND 3.00% NLP...................................................................................... ..................68,066 ..................68,066 .............................. .............................. ..............................0100052. STD IND 3.50% NLP...................................................................................... ................497,583 ................497,583 .............................. .............................. ..............................0100053. SUB STD IND 3.50% NLP.................................................................................. ................144,499 ................144,499 .............................. .............................. ..............................0100054. 41 STD IND 3.00% NLP.................................................................................... .............1,641,162 .............1,641,162 .............................. .............................. ..............................0100055. 41 STD IND 3.50% NLP.................................................................................... ..................20,500 ..................20,500 .............................. .............................. ..............................0100056. SUB STD IND 3.00% NLP..................................................................................... ................305,367 ................305,367 .............................. .............................. ..............................0100057. 61 CSI 3.00% NLP......................................................................................... ................873,210 ................873,210 .............................. .............................. ..............................0100058. 1960 BASIC GROUP TABLE 6%............................................................................ .............3,625,026 .............................. .............................. .............................. .............3,625,0260199997. Totals (Gross)............................................................................................................. ...........88,546,334 .............3,642,448 ...........75,774,470 ...........................0 .............9,129,4160199998. Reinsurance ceded.................................................................................................... ...........74,763,828 .............3,642,448 ...........71,121,380 .............................. ..............................0199999. Totals (Net)................................................................................................................. ...........13,782,506 ...........................0 .............4,653,090 ...........................0 .............9,129,416

Annuities (excluding supplementary contracts with life contingencies): 0200001. AMERICAN ANNUITANTS 4.00% IMM................................................................ .......................324 .........XXX.............. .......................324 .........XXX.............. ..............................0200002. 37 SA 3.50% IMM.................................................................................... ................950,294 .........XXX.............. ................950,294 .........XXX.............. ..............................0200003. A - 1949 3.50% DEF................................................................................... ................294,766 .........XXX.............. ................294,766 .........XXX.............. ..............................0200004. 71 IAM 4.00% DEF................................................................................... .............1,321,609 .........XXX.............. .............1,321,609 .........XXX.............. ..............................0200005. 71 IAM 4.50% DEF(NB)............................................................................ ...........35,643,247 .........XXX.............. ...........35,643,247 .........XXX.............. ..............................0200006. 71 IAM 5.50% DEF................................................................................... ...........94,657,139 .........XXX.............. ...........94,657,139 .........XXX.............. ..............................0200007. 71 IAM 8.25% DEF................................................................................... ...........15,751,325 .........XXX.............. .............1,796,564 .........XXX.............. ...........13,954,7610200008. 71 IAM 9.25% DEF(NB)............................................................................ .............9,904,142 .........XXX.............. .............9,904,142 .........XXX.............. ..............................0200009. 71 IAM 5.00% IMM .................................................................................. .............6,266,105 .........XXX.............. .............6,266,105 .........XXX.............. ..............................0200010. 71 IAM 5.25% IMM................................................................................... .............4,577,025 .........XXX.............. .............4,577,025 .........XXX.............. ..............................


12.1


Credit(Group and

Valuation Standard Total Industrial Ordinary Individual) Group0200011. 71 IAM 5.50% IMM (NB)........................................................................... .............3,357,121 .........XXX.............. .............3,357,121 .........XXX.............. ..............................0200012. 71 IAM 6.00% IMM................................................................................... .............8,858,348 .........XXX.............. .............8,858,348 .........XXX.............. ..............................0200013. 71 IAM 7.00% IMM................................................................................... ..................15,354 .........XXX.............. ..................15,354 .........XXX.............. ..............................0200014. 71 IAM 7.50% IMM................................................................................... .............1,100,706 .........XXX.............. .............1,100,706 .........XXX.............. ..............................0200015. A-2000 3.75% DEF(NB)............................................................................ .........149,689,611 .........XXX.............. .........141,310,122 .........XXX.............. .............8,379,4890200016. A-2000 4.00% DEF(NB)............................................................................ .........324,778,969 .........XXX.............. .........231,798,724 .........XXX.............. ...........92,980,2450200017. A-2000 4.25% DEF.................................................................................... .........183,228,810 .........XXX.............. .........163,746,305 .........XXX.............. ...........19,482,5050200018. A-2000 4.50% DEF.................................................................................... .........410,405,183 .........XXX.............. .........308,741,846 .........XXX.............. .........101,663,3370200019. A-2000 4.75% DEF.................................................................................... .........406,463,145 .........XXX.............. .........273,037,576 .........XXX.............. .........133,425,5690200020. A-2000 5.00% DEF.................................................................................... .........368,658,313 .........XXX.............. .........232,714,781 .........XXX.............. .........135,943,5320200021. A-2000 5.25% DEF.................................................................................... ...........38,152,935 .........XXX.............. ...........23,969,234 .........XXX.............. ...........14,183,7010200022. A-2000 5.50% DEF.................................................................................... .........181,707,311 .........XXX.............. .........113,552,619 .........XXX.............. ...........68,154,6920200023. A-2000 5.75% DEF.................................................................................... ...........12,953,959 .........XXX.............. .............4,340,717 .........XXX.............. .............8,613,2420200024. A-2000 6.00% DEF.................................................................................... ...........43,155,397 .........XXX.............. ...........25,567,613 .........XXX.............. ...........17,587,7840200025. A-2000 6.25% DEF.................................................................................... ...........12,091,865 .........XXX.............. .............7,471,066 .........XXX.............. .............4,620,7990200026. 83 IAM 5.00% DEF................................................................................... ...........11,413,328 .........XXX.............. ...........11,245,078 .........XXX.............. ................168,2500200027. 83 IAM 5.25% DEF................................................................................... ...........16,419,843 .........XXX.............. ...........14,368,164 .........XXX.............. .............2,051,6790200028. 83 IAM 5.50% DEF................................................................................... .............8,236,759 .........XXX.............. .............7,953,572 .........XXX.............. ................283,1870200029. 83 IAM 5.75% DEF................................................................................... ...........13,488,960 .........XXX.............. ...........11,178,269 .........XXX.............. .............2,310,6910200030. 83 IAM 6.00% DEF................................................................................... ...........11,765,309 .........XXX.............. .............8,761,330 .........XXX.............. .............3,003,9790200031. 83 IAM 6.25% DEF................................................................................... .............6,717,469 .........XXX.............. .............3,695,592 .........XXX.............. .............3,021,8770200032. 83 IAM 6.50% DEF................................................................................... .............9,350,558 .........XXX.............. .............8,202,135 .........XXX.............. .............1,148,4230200033. 83 IAM 6.75% DEF................................................................................... .............5,353,052 .........XXX.............. .............2,973,197 .........XXX.............. .............2,379,8550200034. 83 IAM 7.00% DEF................................................................................... ................183,833 .........XXX.............. ................127,876 .........XXX.............. ..................55,9570200035. 83 IAM 7.25% DEF................................................................................... ...........15,265,833 .........XXX.............. ...........15,265,833 .........XXX.............. ..............................0200036. 83 IAM 8.00% DEF................................................................................... .............3,446,821 .........XXX.............. .............2,303,037 .........XXX.............. .............1,143,7840200037. 83 IAM 8.50% DEF................................................................................... ...........10,041,909 .........XXX.............. ...........10,041,909 .........XXX.............. ..............................0200038. 83 IAM 8.75% DEF................................................................................... .............1,028,628 .........XXX.............. .............1,028,628 .........XXX.............. ..............................0200039. 83 IAM 10.00% DEF................................................................................. ................340,044 .........XXX.............. ................340,044 .........XXX.............. ..............................0200040. 83 GAM 5.25% DEF................................................................................. .............1,434,724 .........XXX.............. .............................. .........XXX.............. .............1,434,7240200041. 83 GAM 5.75% DEF................................................................................. ................546,460 .........XXX.............. .............................. .........XXX.............. ................546,4600200042. 83 GAM 6.00% DEF................................................................................. .............5,318,364 .........XXX.............. .............................. .........XXX.............. .............5,318,3640200043. 83 GAM 6.25% DEF................................................................................. .............1,608,184 .........XXX.............. .............................. .........XXX.............. .............1,608,1840200044. 83 GAM 6.50% DEF................................................................................. .............2,693,052 .........XXX.............. .............................. .........XXX.............. .............2,693,0520200045. 83 GAM 6.75% DEF................................................................................. ................434,878 .........XXX.............. .............................. .........XXX.............. ................434,8780200046. 83 GAM 7.00% DEF................................................................................. ................176,734 .........XXX.............. .............................. .........XXX.............. ................176,7340200047. 83 GAM 7.25% DEF................................................................................. .............3,958,507 .........XXX.............. .............................. .........XXX.............. .............3,958,5070200048. 83 GAM 7.50% DEF................................................................................. .............5,820,517 .........XXX.............. .............................. .........XXX.............. .............5,820,5170200049. 83 GAM 7.75% DEF................................................................................. ................356,251 .........XXX.............. .............................. .........XXX.............. ................356,2510200050. 83 GAM 8.00% DEF................................................................................. .............1,354,067 .........XXX.............. .............................. .........XXX.............. .............1,354,0670200051. 83 GAM 8.25% DEF................................................................................. .............1,076,011 .........XXX.............. .............................. .........XXX.............. .............1,076,0110200052. 83 GAM 8.75% DEF................................................................................. ..................76,741 .........XXX.............. .............................. .........XXX.............. ..................76,7410200053. 83 GAM 6.75% IMM.................................................................................. ..................65,598 .........XXX.............. .............................. .........XXX.............. ..................65,5980200054. 83 GAM 7.00% IMM.................................................................................. ................363,957 .........XXX.............. .............................. .........XXX.............. ................363,9570200055. 83 GAM 7.75% IMM.................................................................................. ..................30,342 .........XXX.............. .............................. .........XXX.............. ..................30,3420200056. 83 GAM 8.00% IMM.................................................................................. ................534,578 .........XXX.............. .............................. .........XXX.............. ................534,5780200057. 83 GAM 8.25% IMM.................................................................................. .............1,558,014 .........XXX.............. .............................. .........XXX.............. .............1,558,0140200058. 83 GAM 8.75% IMM.................................................................................. ..................15,697 .........XXX.............. .............................. .........XXX.............. ..................15,6970200059. 83 GAM 9.25% IMM.................................................................................. ..................99,386 .........XXX.............. .............................. .........XXX.............. ..................99,3860200060. 83 GAM 11.00% IMM................................................................................ ................166,460 .........XXX.............. .............................. .........XXX.............. ................166,4600200061. 83 GAM 11.25% IMM................................................................................ ....................1,544 .........XXX.............. .............................. .........XXX.............. ....................1,5440299997. Totals (Gross)............................................................................................................. ......2,454,725,415 .........XXX.............. ......1,792,478,011 .........XXX.............. .........662,247,4040299998. Reinsurance ceded.................................................................................................... ...........19,977,925 .........XXX.............. ...........19,977,925 .........XXX.............. ..............................0299999. Totals (Net)................................................................................................................. ......2,434,747,490 .........XXX.............. ......1,772,500,086 .........XXX.............. .........662,247,404

Supplementary Contracts with Life Contingencies: 0300001. 37 S.A. 2.25%........................................................................................................... ....................2,969 .............................. ....................2,969 .............................. ..............................0300002. 37 S.A. 2.50%........................................................................................................... ....................4,907 .............................. ....................4,907 .............................. ..............................0300003. 83 IAM 4.25% .......................................................................................................... ................818,046 .............................. ................818,046 .............................. ..............................0300004. 71 IAM 4.50% .......................................................................................................... ..................53,697 .............................. ..................53,697 .............................. ..............................0300005. 83 IAM 5.25%............................................................................................................. .............1,417,965 .............................. .............1,417,965 .............................. ..............................0300006. 83 IAM 5.00%............................................................................................................. .............1,486,173 .............................. .............1,486,173 .............................. ..............................0300007. 83 IAM 5.50%............................................................................................................ .............1,474,109 .............................. .............1,474,109 .............................. ..............................0300008. 83 IAM 6.00%............................................................................................................ .............1,498,482 .............................. .............1,498,482 .............................. ..............................0300009. 83 IAM 6.25%............................................................................................................ ................277,697 .............................. ................277,697 .............................. ..............................0300010. 83 IAM 6.50%............................................................................................................ ................765,312 .............................. ................765,312 .............................. ..............................0300011. 83 IAM 6.75%............................................................................................................ ................772,987 .............................. ................772,987 .............................. ..............................0300012. 83 IAM 7.00%............................................................................................................ ................671,669 .............................. ................671,669 .............................. ..............................0300013. 83 IAM 7.25%............................................................................................................ ................452,128 .............................. ................452,128 .............................. ..............................0300014. 83 IAM 7.50%............................................................................................................ ................588,722 .............................. ................588,722 .............................. ..............................0300015. 83 IAM 7.75%............................................................................................................ ................385,179 .............................. ................385,179 .............................. ..............................0300016. 83 IAM 8.25%............................................................................................................ .............1,289,520 .............................. .............1,289,520 .............................. ..............................0300017. 83 IAM 8.75%............................................................................................................ ................107,052 .............................. ................107,052 .............................. ..............................0300018. A2000 6.50%............................................................................................................. ..................89,264 .............................. ..................89,264 .............................. ..............................


12.2


Credit(Group and

Valuation Standard Total Industrial Ordinary Individual) Group0399997. Totals (Gross)..................................................................................................... ..........12,155,878 .........................0 ..........12,155,878 .........................0 .........................00399999. Totals (Net)......................................................................................................... ..........12,155,878 .........................0 ..........12,155,878 .........................0 .........................0

Accidental Death Benefits: 0400001. 1959 ADB WITH 58 CSO 3.00%........................................................................ ................25,776 ............................ ................25,776 ............................ ............................0499997. Totals (Gross)..................................................................................................... ................25,776 .........................0 ................25,776 .........................0 .........................00499998. Reinsurance ceded............................................................................................. ................25,776 ............................ ................25,776 ............................ ............................0499999. Totals (Net)......................................................................................................... .........................0 .........................0 .........................0 .........................0 .........................0

Disability - Active Lives: 0500001. 1952 DISABILITY STUDY WITH 58 CSO 3.00%............................................... ..............150,340 ............................ ..............150,340 ............................ ............................0599997. Totals (Gross)..................................................................................................... ..............150,340 .........................0 ..............150,340 .........................0 .........................00599998. Reinsurance ceded............................................................................................. ..............150,108 ............................ ..............150,108 ............................ ............................0599999. Totals (Net)......................................................................................................... .....................232 .........................0 .....................232 .........................0 .........................0

Disability - Disabled Lives: 0600001. 1952 DISABILITY STUDY WITH 58 CSO 3.00%............................................... ............1,909,955 ............................ ............1,909,955 ............................ ............................0600002. GROUP.............................................................................................................. ..........10,146,263 ............................ ............................ ............................ ..........10,146,2630600003. 70 INTERCOMPANY DISA 3.00%.................................................................... ..........95,976,935 ............................ ............................ ............................ ..........95,976,9350600004. 2005 GROUP TERM LIFE WAIVER RESERVE TABLE 4.00%......................... ..........36,802,254 ............................ ............................ ............................ ..........36,802,2540699997. Totals (Gross)..................................................................................................... ........144,835,407 .........................0 ............1,909,955 .........................0 ........142,925,4520699998. Reinsurance ceded............................................................................................. ..........19,295,890 ............................ ............1,909,955 ............................ ..........17,385,9350699999. Totals (Net)......................................................................................................... ........125,539,517 .........................0 .........................0 .........................0 ........125,539,517

Miscellaneous Reserves: 0700001. Immediate Claim Payment.................................................................................. ..............969,811 ............................ ..............969,811 ............................ ............................0700002. Special Class extra............................................................................................. ..................3,488 ............................ ..................3,488 ............................ ............................

0700003.

For excess of valuation net premiums over corresponding gross premiums onrespective policies, computed according to the standard of valuation requiredby the state ..............712,575 ............................ ..............712,575 ............................ ............................

0700004.For non-deduction of deferred fractional premiums or return of premiums atthe death of the insured ..............349,814 ............................ ..............349,814 ............................ ............................

0700005.For surrender values in excess of reserves otherwise required and carried inthis exhibit ............2,442,102 ............................ ............2,442,102 ............................ ............................

0799997. Totals (Gross)..................................................................................................... ............4,477,790 .........................0 ............4,477,790 .........................0 .........................00799998. Reinsurance ceded............................................................................................. ............4,385,858 ............................ ............4,385,858 ............................ ............................0799999. Totals (Net)......................................................................................................... ................91,932 .........................0 ................91,932 .........................0 .........................09999999. Totals (Net) - Page 3, Line 1............................................................................... .....2,586,317,555 .........................0 .....1,789,401,218 .........................0 ........796,916,337


13

EXHIBIT 5 - INTERROGATORIES1.1 Has the reporting entity ever issued both participating and non-participating contracts? Yes [ X ] No [ ]1.2 If not, state which kind is issued

2.1 Does the reporting entity at present issue both participating and non-participating contracts? Yes [ ] No [ X ]2.2 If not, state which kind is issued

NON-PARTICIPATING

3. Does the reporting entity at present issue or have in force contracts that contain non-guaranteed elements? Yes [ X ] No [ ]If so, attach a statement that contains the determination procedures, answers to the interrogatories and an actuarial opinion as described in the instructions.

4. Has the reporting entity any assessment or stipulated premium contracts in force? If so, state: Yes [ ] No [ X ]4.1 Amount of insurance: $...........................................4.2 Amount of reserve: $...........................................4.3 Basis of reserve:

4.4 Basis of regular assessments:

4.5 Basis of special assessments:

4.6 Assessments collected during year: $...........................................5. If the contract loan interest rate guaranteed in any one or more of its currently issued contracts is less than 5%, not in advance, state the

contract loan rate guarantees on any such contracts.

6. Does the reporting entity hold reserves for any annuity contracts that are less than the reserves that would be held on a standard basis? Yes [ ] No [ X ]6.1 If so, state the amount of reserve on such contracts on the basis actually held: $...........................................

6.2 That would have been held (on an exact or approximate basis) using the actual ages of the annuitants; the interest rate(s) used in 6.1; and the same mortality basis used by the reporting entity for the valuation of comparable annuity benefits issued to standard lives. If the reporting entity has no comparable annuity benefits for standard lives to be valued, the mortality basis shall be the table most recently approved by the state of domicile for valuing individual annuity benefits: $...........................................Attach statement of methods employed in their valuation.

7. Does the reporting entity have any Synthetic GIC contracts or agreements in effect as of December 31 of the current year? Yes [ ] No [ X ]7.1 If yes, state the total dollar amount of assets covered by these contracts or agreements: $...........................................7.2 Specify the basis (fair value, amortized cost, etc.) for determining the amount:

7.3 State the amount of reserves established for this business: $...........................................7.4 Identify where the reserves are reported in the blank.

8. Does the reporting entity have any Contingent Deferred Annuity contracts or agreements in effect as of December of the current year? Yes [ ] No [ X ]8.1 If yes, state the total dollar amount of account value covered by these contracts or agreements. $...........................................8.2 State the amount of reserves established for this business. $...........................................8.3 Identify where the reserves are reported in the blank.

9. Does the reporting entity have any Guaranteed Lifetime Income Benefit contracts, agreements or riders in effect as of December 31 of the current year? Yes [ ] No [ X ]9.1 If yes, state the total dollar amount of any account value associated with these contracts, agreements or riders. $...........................................9.2 State the amount of reserves established for this business. $...........................................9.3 Identify where the reserves are reported in the blank.

EXHIBIT 5A - CHANGES IN BASES OF VALUATION DURING THE YEAR1 Valuation Basis 4

2 3 Increase in ActuarialDescription of Valuation Class Changed From Changed To Reserve Due To Change

NONE


14

EXHIBIT 6 - AGGREGATE RESERVES FOR ACCIDENT AND HEALTH CONTRACTS1 2 3 4 Other Individual Contracts

Credit Accident 5 6 7 8 9Group and Health Non-Renewable

Accident (Group and Collectively Non- Guaranteed for Stated Other AccidentTotal and Health Individual) Renewable Cancelable Renewable Reasons Only Only All Other

ACTIVE LIFE RESERVE

1. Unearned premium reserves......................................................................... .....................7,212,949 .....................7,212,949 ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................2. Additional contract reserves (a).................................................................... ...................................0 ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................3. Additional actuarial reserves - Asset/Liability analysis.................................. ...................................0 ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................4. Reserve for future contingent benefits.......................................................... ...................................0 ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................5. Reserve for rate credits................................................................................ ...................................0 ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................6. Aggregate write-ins for reserves................................................................... ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................07. Totals (Gross)............................................................................................... .....................7,212,949 .....................7,212,949 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................08. Reinsurance ceded....................................................................................... ..........................51,763 ..........................51,763 ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................9. Totals (Net)................................................................................................... .....................7,161,186 .....................7,161,186 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0

CLAIM RESERVE10. Present value of amounts not yet due on claims........................................... .................961,978,242 .................961,978,242 ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................11. Additional actuarial reserves - Asset/Liability analysis.................................. ...................................0 ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................12. Reserve for future contingent benefits.......................................................... ...................................0 ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................13. Aggregate write-ins for reserves................................................................... ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................014. Totals (Gross)............................................................................................... .................961,978,242 .................961,978,242 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................015. Reinsurance ceded....................................................................................... ...................65,054,173 ...................65,054,173 ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................16. Totals (Net)................................................................................................... .................896,924,069 .................896,924,069 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................017. TOTALS (Net).............................................................................................. .................904,085,255 .................904,085,255 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................018. TABULAR FUND INTEREST....................................................................... ...................43,074,547 ...................43,074,547 ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................

DETAILS OF WRITE-INS

0601. ..................................................................................................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................0602. ..................................................................................................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................0603. ..................................................................................................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................0698. Summary of remaining write-ins for Line 6 from overflow page..................... ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................00699. Totals (Lines 0601 thru 0603 plus 0698) (Line 6 above)............................... ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................01301. ..................................................................................................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................1302. ..................................................................................................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................1303. ..................................................................................................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ......................................1398. Summary of remaining write-ins for Line 13 from overflow page................... ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................01399. Totals (Lines 1301 thru 1303 + 1398) (Line 13 above).................................. ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0 ...................................0

(a) Attach statement as to valuation standard used in calculating this reserve, specifying reserve bases, interest rates and methods.


15

EXHIBIT 7 - DEPOSIT-TYPE CONTRACTS1 2 3 4 5 6

Guaranteed Dividend Premium andInterest Annuities Supplemental Accumulations Other Deposit

Total Contracts Certain Contracts or Refunds Funds

1. Balance at the beginning of the year before reinsurance....................................................................... .................................40,117,059 .................................................... .................................................... .................................40,117,059 .................................................... ....................................................

2. Deposits received during the year......................................................................................................... .................................10,411,690 .................................................... .................................................... .................................10,411,690 .................................................... ....................................................

3. Investment earnings credited to the account.......................................................................................... ...................................1,615,654 .................................................... .................................................... ...................................1,615,654 .................................................... ....................................................

4. Other net change in reserves................................................................................................................ ................................................0 .................................................... .................................................... .................................................... .................................................... ....................................................

5. Fees and other charges assessed......................................................................................................... ................................................0 .................................................... .................................................... .................................................... .................................................... ....................................................

6. Surrender charges................................................................................................................................. ................................................0 .................................................... .................................................... .................................................... .................................................... ....................................................

7. Net surrender or withdrawal payments.................................................................................................. ...................................9,440,967 .................................................... .................................................... ...................................9,440,967 .................................................... ....................................................

8. Other net transfers to or (from) Separate Accounts............................................................................... ................................................0 .................................................... .................................................... .................................................... .................................................... ....................................................

9. Balance at the end of current year before reinsurance (Lines 1 + 2 + 3 + 4 - 5 - 6 - 7 - 8)..................... .................................42,703,436 ................................................0 ................................................0 .................................42,703,436 ................................................0 ................................................0

10. Reinsurance balance at the beginning of the year................................................................................. ......................................497,483 .................................................... .................................................... ......................................497,483 .................................................... ....................................................

11. Net change in reinsurance assumed...................................................................................................... ......................................(50,454) .................................................... .................................................... ......................................(50,454) .................................................... ....................................................

12. Net change in reinsurance ceded.......................................................................................................... ................................................0 .................................................... .................................................... .................................................... .................................................... ....................................................

13. Reinsurance balance at the end of the year (Lines 10 + 11 - 12)........................................................... ......................................447,029 ................................................0 ................................................0 ......................................447,029 ................................................0 ................................................0

14. Net balance at the end of the current year after reinsurance (Lines 9 + 13)........................................... .................................43,150,465 ................................................0 ................................................0 .................................43,150,465 ................................................0 ................................................0


16

EXHIBIT 8 - CLAIMS FOR LIFE AND ACCIDENT AND HEALTH CONTRACTSPART 1 - Liability End of Current Year

1 2 Ordinary 6 Group Accident and Health3 4 5 7 8 9 10 11

Credit Life CreditIndustrial Life Individual Supplementary (Group and Life (Group and

Total Life Insurance Annuities Contracts Individual) Insurance Annuities Group Individual) Other1. Due and unpaid:

1.1 Direct................................................................ ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. ..................................1.2 Reinsurance assumed....................................... ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. ..................................1.3 Reinsurance ceded............................................ ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. ..................................1.4 Net.................................................................... ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 ...............................0

2. In course of settlement: 2.1 Resisted:

2.11 Direct............................................................... ....................340,000 .................................. .................................. .................................. .................................. .................................. ....................340,000 .................................. .................................. .................................. ..................................2.12 Reinsurance assumed..................................... ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. ..................................2.13 Reinsurance ceded.......................................... ...............................0 .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. ..................................2.14 Net.................................................................. ....................340,000 ...............................0 (b)...........................0 (b)...........................0 ...............................0 (b)...........................0 (b)................340,000 ...............................0 ...............................0 ...............................0 ...............................0

2.2 Other: 2.21 Direct............................................................... .............329,888,318 .................................. .................1,322,262 .................................. .................................. .................................. .................7,579,018 .................................. .............320,987,038 .................................. ..................................2.22 Reinsurance assumed..................................... .............184,446,417 .................................. .................................. .................................. .................................. .................................. .................................. .................................. .............184,446,417 .................................. ..................................2.23 Reinsurance ceded.......................................... ...............28,475,192 .................................. ....................668,430 .................................. .................................. .................................. ....................137,000 .................................. ...............27,669,762 .................................. ..................................2.24 Net.................................................................. .............485,859,543 ...............................0 (b)................653,832 (b)...........................0 ...............................0 (b)...........................0 (b).............7,442,018 ...............................0 (b).........477,763,693 (b)...........................0 (b)...........................0

3. Incurred but unreported: 3.1 Direct................................................................ ...............63,415,599 .................................. ....................284,403 .................................. .................................. .................................. ...............39,966,496 .................................. ...............23,164,700 .................................. ..................................3.2 Reinsurance assumed....................................... ...............35,778,844 .................................. .................................. .................................. .................................. .................................. .................................. .................................. ...............35,778,844 .................................. ..................................3.3 Reinsurance ceded............................................ .................1,041,046 .................................. ....................257,295 .................................. .................................. .................................. .................................. .................................. ....................783,751 .................................. ..................................3.4 Net.................................................................... ...............98,153,397 ...............................0 (b)..................27,108 (b)...........................0 ...............................0 (b)...........................0 (b)...........39,966,496 ...............................0 (b)...........58,159,793 (b)...........................0 (b)...........................0

4. Totals: 4.1 Direct................................................................ .............393,643,917 ...............................0 .................1,606,665 ...............................0 ...............................0 ...............................0 ...............47,885,514 ...............................0 .............344,151,738 ...............................0 ...............................04.2 Reinsurance assumed....................................... .............220,225,261 ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 ...............................0 .............220,225,261 ...............................0 ...............................04.3 Reinsurance ceded............................................ ...............29,516,238 ...............................0 ....................925,725 ...............................0 ...............................0 ...............................0 ....................137,000 ...............................0 ...............28,453,513 ...............................0 ...............................04.4 Net.................................................................... .............584,352,940 (a)...........................0 (a)................680,940 ...............................0 ...............................0 ...............................0 (a)...........47,748,514 ...............................0 .............535,923,486 ...............................0 ...............................0

(a) Including matured endowments (but not guaranteed annual pure endowments) unpaid amounting to $..........0 in Column 2, $..........0 in Column 3 and $..........0 in Column 7. (b) Include only portion of disability and accident and health claim liabilities applicable to assumed "accrued" benefits. Reserves (including reinsurance assumed and net of reinsurance ceded) for unaccrued benefits for Ordinary Life Insurance $..........0, Individual Annuities $...........0, Credit Life (Group and Individual) $..........0, and Group Life $.....125,539,517, are included in Page 3, Line 1, (See Exhibit 5, Section on Disability Disabled Lives); and for Group Accident and Health $.....896,924,069, Credit (Group and Individual) Accident and Health $..........0 and Other Accident and Health $..........0 are included in Page 3, Line 2, (See Exhibit 6, Claim Reserve).


17

EXHIBIT 8 - CLAIMS FOR LIFE AND ACCIDENT AND HEALTH CONTRACTSPART 2 - Incurred During the Year

1 2 Ordinary 6 Group Accident and Health3 4 5 7 8 9 10 11

Industrial Life Credit Life Life CreditLife Insurance Individual Supplementary (Group and Insurance (Group and

Total (a) (b) Annuities Contracts Individual) (c) Annuities Group Individual) Other1. Settlements during the year:

1.1 Direct....................................................................................... ............818,113,431 ................................. ................8,425,541 ..............34,120,429 ................1,539,487 ................................. ............292,077,618 ................9,501,437 ............472,266,799 ................................. ..............182,1201.2 Reinsurance assumed............................................................. ..............37,351,750 ................................. ...................328,205 ...................178,396 ...................162,292 ................................. ................................. ...................352,333 ..............36,330,524 ................................. ............................1.3 Reinsurance ceded.................................................................. ............301,121,500 ................................. ................5,932,453 .......................5,774 .......................9,611 ................................. ............237,689,193 ................................. ..............57,484,469 ................................. ............................1.4 Net........................................................................................... (d)........554,343,681 .............................0 ................2,821,293 ..............34,293,051 ................1,692,168 .............................0 ..............54,388,425 ................9,853,770 ............451,112,854 .............................0 ..............182,120

2. Liability December 31, current year from Part 1:2.1 Direct....................................................................................... ............393,643,917 ................................. ................1,606,665 ................................. ................................. ................................. ..............47,885,514 ................................. ............344,151,738 ................................. ............................2.2 Reinsurance assumed............................................................. ............220,225,261 ................................. ................................. ................................. ................................. ................................. ................................. ................................. ............220,225,261 ................................. ............................2.3 Reinsurance ceded.................................................................. ..............29,516,238 ................................. ...................925,725 ................................. ................................. ................................. ...................137,000 ................................. ..............28,453,513 ................................. ............................2.4 Net........................................................................................... ............584,352,940 .............................0 ...................680,940 .............................0 .............................0 .............................0 ..............47,748,514 .............................0 ............535,923,486 .............................0 .........................0

3. Amounts recoverable from reinsurers December 31, current year.. ................4,291,334 ................................. ................................. ................................. ................................. ................................. ................1,556,178 ................................. ................2,735,156 ................................. ............................4. Liability December 31, prior year:

4.1 Direct....................................................................................... ............381,129,775 ................................. ................1,496,870 ................................. ................................. ................................. ..............51,848,839 ................................. ............327,784,066 ................................. ............................4.2 Reinsurance assumed............................................................. ............196,982,631 ................................. ................................. ................................. ................................. ................................. ................................. ................................. ............196,982,631 ................................. ............................4.3 Reinsurance ceded.................................................................. ..............33,498,217 ................................. ...................735,937 ................................. ................................. ................................. ................1,067,115 ................................. ..............31,695,165 ................................. ............................4.4 Net........................................................................................... ............544,614,189 .............................0 ...................760,933 .............................0 .............................0 .............................0 ..............50,781,724 .............................0 ............493,071,532 .............................0 .........................0

5. Amounts recoverable from reinsurers December 31, prior year...... ................4,713,496 ................................. ................................. ................................. ................................. ................................. ................2,063,792 ................................. ................2,649,704 ................................. ............................6. Incurred benefits:

6.1 Direct....................................................................................... ............830,627,573 .............................0 ................8,535,336 ..............34,120,429 ................1,539,487 .............................0 ............288,114,293 ................9,501,437 ............488,634,471 .............................0 ..............182,1206.2 Reinsurance assumed............................................................. ..............60,594,380 .............................0 ...................328,205 ...................178,396 ...................162,292 .............................0 .............................0 ...................352,333 ..............59,573,154 .............................0 .........................06.3 Reinsurance ceded.................................................................. ............296,717,359 .............................0 ................6,122,241 .......................5,774 .......................9,611 .............................0 ............236,251,464 .............................0 ..............54,328,269 .............................0 .........................06.4 Net........................................................................................... ............594,504,594 .............................0 ................2,741,300 ..............34,293,051 ................1,692,168 .............................0 ..............51,862,829 ................9,853,770 ............493,879,356 .............................0 ..............182,120

(a) Including matured endowments (but not guaranteed annual pure endowments) amounting to $..........0 in Line 1.1, $..........0 in Line 1.4, $..........0 in Line 6.1 and $..........0 in line 6.4. (b) Including matured endowments (but not guaranteed annual pure endowments) amounting to $.....723,737 in Line 1.1, $..........0 in Line 1.4, $.....723,737 in Line 6.1 and $..........0 in line 6.4. (c) Including matured endowments (but not guaranteed annual pure endowments) amounting to $..........0 in Line 1.1, $..........0 in Line 1.4, $..........0 in Line 6.1 and $..........0 in line 6.4. (d) Includes $.....3,942 premiums waived under total and permanent disability benefits.


18

EXHIBIT OF NONADMITTED ASSETS1 2 3

Current Year Prior Year Change in TotalTotal Total Nonadmitted Assets

Nonadmitted Assets Nonadmitted Assets (Col. 2 - Col. 1)

1. Bonds (Schedule D).......................................................................................................... ............................................... ............................................... ............................................0

2. Stocks (Schedule D):

2.1 Preferred stocks....................................................................................................... ............................................... ............................................... ............................................0

2.2 Common stocks....................................................................................................... ............................................... ............................................... ............................................0

3. Mortgage loans on real estate (Schedule B):

3.1 First liens................................................................................................................. ............................................... ............................................... ............................................0

3.2 Other than first liens................................................................................................. ............................................... ............................................... ............................................0

4. Real estate (Schedule A):

4.1 Properties occupied by the company....................................................................... ............................................... ............................................... ............................................0

4.2 Properties held for the production of income............................................................ ........................................499 ........................................499 ............................................0

4.3 Properties held for sale............................................................................................ ............................................... ............................................... ............................................0

5. Cash (Schedule E-Part 1), cash equivalents (Schedule E-Part 2) and short-term investments (Schedule DA)....................................................................... ............................................... ............................................... ............................................0

6. Contract loans................................................................................................................... ............................................... ............................................... ............................................0

7. Derivatives (Schedule DB)................................................................................................. ............................................... ............................................... ............................................0

8. Other invested assets (Schedule BA)................................................................................ ............................................... .................................923,297 .................................923,297

9. Receivables for securities.................................................................................................. ............................................... ............................................... ............................................0

10. Securities lending reinvested collateral assets (Schedule DL)........................................... ............................................... ............................................... ............................................0

11. Aggregate write-ins for invested assets............................................................................. ............................................0 ............................................0 ............................................0

12. Subtotals, cash and invested assets (Lines 1 to 11).......................................................... ........................................499 .................................923,796 .................................923,297

13. Title plants (for Title insurers only)..................................................................................... ............................................... ............................................... ............................................0

14. Investment income due and accrued................................................................................. ............................................... ............................................... ............................................0

15. Premiums and considerations:

15.1 Uncollected premiums and agents' balances in the course of collection................... ..............................1,383,702 ..............................1,494,122 .................................110,420

15.2 Deferred premiums, agents' balances and installments booked but deferred and not yet due.......................................................................................... ............................................... ............................................... ............................................0

15.3 Accrued retrospective premiums.............................................................................. ............................................... ............................................... ............................................0

16. Reinsurance:

16.1 Amounts recoverable from reinsurers...................................................................... ............................................... ............................................... ............................................0

16.2 Funds held by or deposited with reinsured companies............................................. ............................................... ............................................... ............................................0

16.3 Other amounts receivable under reinsurance contracts............................................ ............................................... ............................................... ............................................0

17. Amounts receivable relating to uninsured plans................................................................. ............................................... ............................................... ............................................0

18.1 Current federal and foreign income tax recoverable and interest thereon.......................... ............................................... ............................................... ............................................0

18.2 Net deferred tax asset....................................................................................................... ............................45,954,221 ............................58,591,588 ............................12,637,367

19. Guaranty funds receivable or on deposit............................................................................ ............................................... ............................................... ............................................0

20. Electronic data processing equipment and software.......................................................... ..............................4,718,028 ..............................4,037,985 ................................(680,043)

21. Furniture and equipment, including health care delivery assets......................................... ..............................5,560,607 ..............................4,322,595 .............................(1,238,012)

22. Net adjustment in assets and liabilities due to foreign exchange rates............................... ............................................... ............................................... ............................................0

23. Receivables from parent, subsidiaries and affiliates.......................................................... ...................................73,741 .....................................3,230 ..................................(70,511)

24. Health care and other amounts receivable......................................................................... ............................................... ............................................... ............................................0

25. Aggregate write-ins for other than invested assets............................................................ ..............................3,769,235 ..............................6,239,420 ..............................2,470,185

26. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 through 25).................................................................................. ............................61,460,033 ............................75,612,736 ............................14,152,703

27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts.................. ............................................... ............................................... ............................................0

28. TOTALS (Lines 26 and 27)................................................................................................ ............................61,460,033 ............................75,612,736 ............................14,152,703

DETAILS OF WRITE-INS

1101. .......................................................................................................................................... ............................................... ............................................... ............................................0

1102. .......................................................................................................................................... ............................................... ............................................... ............................................0

1103. .......................................................................................................................................... ............................................... ............................................... ............................................0

1198. Summary of remaining write-ins for Line 11 from overflow page........................................ ............................................0 ............................................0 ............................................0

1199. Totals (Lines 1101 thru 1103 plus 1198) (Line 11 above).................................................. ............................................0 ............................................0 ............................................0

2501. Prepaid pension costs and other expenses and suspense debits....................................... ..............................2,159,582 ..............................4,801,505 ..............................2,641,923

2502. Other than invested assets nonadmitted............................................................................ .................................687,992 ..............................1,183,162 .................................495,170

2503. Other assets nonadmitted.................................................................................................. .................................921,661 .................................254,753 ................................(666,908)

2598. Summary of remaining write-ins for Line 25 from overflow page........................................ ............................................0 ............................................0 ............................................0

2599. Totals (Lines 2501 thru 2503 plus 2598) (Line 25 above).................................................. ..............................3,769,235 ..............................6,239,420 ..............................2,470,185

Annual Statement for the year 2012 of the Reliance Standard Life Insurance Company NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Accounting Practices The accompanying financial statements of Reliance Standard Life Insurance Company (the

“Company”) have been prepared in conformity with statutory accounting practices (“SAP”) as set forth in the National Association of Insurance Commissioners (“NAIC”) Accounting Practices and Procedures manuals and the NAIC Annual Statement Instructions manuals and with accounting practices prescribed by the State of Illinois.

B. Use of Estimates in the Preparation of the Financial Statements The preparation of financial statements in conformity with SAP requires management to make

estimates and assumptions that affect the reported amounts of assets and liabilities. SAP also requires 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.

C. Accounting Policy

Ordinary life insurance premiums are recognized as income over the premium-paying period of the related policies. Group life and accident and health premiums are earned ratably over the terms of the related insurance and reinsurance contracts or policies. Considerations for annuity and supplementary contracts with mortality or morbidity risk are recognized as revenue when received. Funds received from deposit-type contracts, annuity and supplementary contracts without mortality or morbidity risk, are recorded as an addition to policy reserves and are not recognized as revenue. Expenses incurred in connection with acquiring new insurance business, including acquisition costs such as sales commissions, are charged to operations as incurred.

In addition, the Company uses the following accounting policies: (1) Short-term investments are stated at amortized cost. (2) Bonds not backed by other loans are stated at amortized cost using the interest method,

except for those in reserve class six, which are stated at the lower of amortized cost or market value.

(3) Common stocks are stated at market value, except common stocks of affiliated companies, which are valued as stated in item (7) of this Note 1(C) and Note 10 below.

(4) Preferred stocks are stated at cost, except for those in reserve classes four through six which are stated at the lower of cost or market value.

(5) Mortgage loans on real estate are stated at amortized cost using the interest method. (6) Loan-backed securities are stated at either amortized cost or the lower of amortized cost or

fair market value using the interest method; significant changes in estimated cash flows from the original purchase assumptions are accounted for using the prospective method.

(7) The Company owns 100% of the common stock of First Reliance Standard Life Insurance Company (“FRSLIC”). The Company's carrying value of the stock is equal to the statutory capital and surplus of FRSLIC.

(8) The Company has certain ownership interests in limited partnerships and limited liability companies. The Company carries these interests based on the underlying audited GAAP equity of the investee.

(9) The Company's derivative instruments that do not meet the criteria to qualify for hedge accounting are accounted for at fair value and the related changes in fair values during the holding period are recorded as unrealized gains and losses.

(10) The Company considers anticipated investment income in its review of reserves for potential premium deficiencies.

(11) Unpaid claims and claim adjustment expenses include an amount determined from individual case estimates and loss reports and an amount, based on past experience, for losses incurred but not reported. Such liabilities are necessarily based on assumptions and estimates, and while management believes the amount is adequate, the ultimate liability may be in excess of or less than the amount provided. The methods for making such estimates and for establishing the resulting liability is continually reviewed and any adjustments are reflected in the period determined.

(12) The Company has not modified its capitalization policy from the prior period. (13) Not applicable. The amounts reported in this statement that pertain to the entire business of the Company include, as appropriate, the activity of the Company’s separate account business.

The Company elected to use rounding in the preparation of this statement. 2. ACCOUNTING CHANGES AND CORRECTIONS OF ERRORS

A. The Company has not made any material changes in its accounting policies during the year ended

December 31, 2012. No material errors occurred, or were required to be corrected, in the financial statements for the year ended December 31, 2012.

19

Annual Statement for the year 2012 of the Reliance Standard Life Insurance Company NOTES TO FINANCIAL STATEMENTS In November 2011, the NAIC adopted Statement of Statutory Accounting Principles No. 101, "Income

Taxes, A Replacement of SSAP No. 10R and SSAP No. 10", ("SSAP No. 101"). SSAP No. 101 contains changes to accounting for current and deferred federal and foreign income taxes. This statement is effective for the years beginning January 1, 2012. This guidance provides that the deferred tax asset admissibility guidance is no longer elective, and the reversal and surplus limitation parameters in the admissibility tests are determined based on the risk-based capital level. It also requires gross deferred tax assets to be reduced by a statutory valuation allowance if it is more likely than not that some portion or all of the gross deferred tax assets will not be realized. Finally, this guidance sets a more likely than not threshold for the recording of contingent tax liabilities. The adoption of SSAP No. 101 had no impact on the Company's surplus.

3. BUSINESS COMBINATIONS AND GOODWILL Not applicable. 4. DISCONTINUED OPERATIONS Not applicable. 5. INVESTMENTS A. Mortgage Loans (1) During 2012, the Company acquired commercial mortgage loans with a maximum and

minimum lending rate of 14.00% and 8.75%, respectively. (2) Not applicable. (3) The maximum percentage of any one loan to the value of security at the time of the loan was

75%.

2012 2011

(4) Mortgages held with interest more than 180 days past due -$ -$

(5) Taxes, assessments and any amounts advanced not included in mortgage loan total -$ -$

(6) Current year impaired loans with a related allowance for credit losses -$ -$

(7) Impaired mortgage loans without an allowance for credit losses -$ -$

(8) Average recorded investments in impaired loans -$ 516,128$ (9) Interest income recognized during the period

the loans were impaired -$ -$ (10) Amount of interest income recognized on a cash

basis during the period the loans were impaired -$ -$ (11) Allowance for credit losses:

a. Balance at beginning of period -$ -$ b. additions charged to operations - - c. direct write-downs charged against allowances - - d. Recoveries of amounts previously charged off - - e. Balance at end of period -$ -$

(12) The Company recognizes interest income on its impaired loans upon receipt. Cash receipts are recorded on the day the payments are received by the Company.

B-C. Not applicable. D. Loan-Backed Securities (1) Prepayment assumptions for single class and multi-class mortgage-backed and asset-backed

securities were obtained from broker-dealer survey values or internal estimates. These assumptions are consistent with the current interest rate environment. The prospective adjustment method is used to value all securities.

(2) Not applicable. (3) The Company did not experience any other-than-temporary impairments based on the

Company's intent to sell or inability or lack of intent to retain the investment in the security for a period of time sufficient to recover the amortized cost basis. Other-than-temporary impairments classified on the basis that the present value of cash flows expected to be collected is less than the amortized cost basis of the security are presented in the table below

19.1

Annual Statement for the year 2012 of the Reliance Standard Life Insurance Company NOTES TO FINANCIAL STATEMENTS

(1) (2) (3) (4) (5) (6) (7)Book/Adjusted Date ofCarrying Value Present Value Book/Adjusted Financial

Before of Carrying Value StatementCurrent Period Projected Recognized After Fair Where

CUSIP OTTI Cash Flows OTTI OTTI Value Reported

12668XAB1 3,853,412$ 3,136,055$ (717,357)$ 3,136,055$ 2,793,706$ 09/30/200912670BAC3 2,932,025 2,400,157 (531,868) 2,400,157 2,400,159 09/30/200917307G4L9 16,566,150 15,777,977 (788,173) 15,777,977 12,366,553 09/30/2009525221EB9 917,346 870,751 (46,595) 870,751 664,867 09/30/200961750YAB5 5,315,553 5,002,240 (313,313) 5,002,240 3,676,632 09/30/2009760985XZ9 414,528 969,420 554,892 969,420 421,041 09/30/200976110WZW9 851,742 345,724 (506,018) 345,724 146,289 09/30/200987222EAC2 3,931,984 3,556,873 (375,111) 3,556,873 3,556,875 09/30/200903072SQY4 1,358,100 870,555 (487,545) 870,555 294,623 12/31/200905948KVG1 1,068,374 321,753 (746,621) 321,753 288,728 12/31/2009059513EG2 262,600 230,554 (32,046) 230,554 87,594 12/31/200917307G4H8 1,045,187 951,294 (93,893) 951,294 951,294 12/31/200986359AQS5 4,208,079 4,113,100 (94,979) 4,113,100 4,113,100 12/31/200902148BAC8 7,385,592 6,983,283 (402,309) 6,983,283 5,636,487 12/31/200902151CBK1 1,726,741 1,680,954 (45,787) 1,680,954 1,113,932 12/31/200907387QAM2 5,827,815 4,929,043 (898,772) 4,929,043 4,333,443 12/31/2009126683AC5 2,361,810 1,358,103 (1,003,707) 1,358,103 1,549,457 12/31/200912668VAC3 1,006,408 736,653 (269,755) 736,653 726,388 12/31/200912668VAF6 4,705,810 3,773,085 (932,725) 3,773,085 3,822,003 12/31/2009000780HN9 500,143 439,508 (60,635) 439,508 357,053 03/31/201003072SQY4 870,556 167,139 (703,417) 167,139 135,037 03/31/201005948KVG1 320,313 288,728 (31,585) 288,728 318,928 03/31/2010059513EG2 229,351 162,710 (66,641) 162,710 63,701 03/31/201007386HL66 4,428,821 4,109,850 (318,971) 4,109,850 2,926,295 03/31/2010126378AL2 5,150,931 5,136,760 (14,171) 5,136,760 3,826,168 03/31/2010126685CZ7 1,938,660 1,823,214 (115,446) 1,823,214 1,657,057 03/31/201012668XAB1 2,357,254 2,304,047 (53,207) 2,304,047 1,985,727 03/31/201012669FG23 412,291 161,099 (251,192) 161,099 121,718 03/31/2010172973X87 1,129,162 238,316 (890,846) 238,316 205,502 03/31/201017307G4H8 837,240 815,705 (21,535) 815,705 791,754 03/31/201046631NCR8 9,678,123 9,017,792 (660,331) 9,017,792 8,788,988 03/31/201061750YAB5 4,985,789 4,928,190 (57,599) 4,928,190 3,777,686 03/31/201069335YAL0 460,248 352,644 (107,604) 352,644 184,825 03/31/2010760985XZ9 880,053 643,074 (236,979) 643,074 265,876 03/31/201076110HPZ6 1,295,120 1,170,996 (124,124) 1,170,996 930,052 03/31/201081378AAC5 1,124,653 780,776 (343,877) 780,776 105,096 03/31/201087222EAC2 3,473,694 3,454,213 (19,481) 3,454,213 3,132,333 03/31/2010000780HN9 427,804 354,619 (73,185) 354,619 293,539 06/30/201002148AAF3 5,165,405 4,758,693 (406,712) 4,758,693 4,155,624 06/30/201002148BAC8 6,672,255 6,512,806 (159,449) 6,512,806 5,241,854 06/30/201003072SQY4 167,139 137,058 (30,081) 137,058 115,907 06/30/201005946XGJ6 4,107,726 2,577,638 (1,530,088) 2,577,638 1,513,529 06/30/201005948KVG1 287,373 286,086 (1,287) 286,086 328,161 06/30/2010059513EG2 161,811 151,006 (10,805) 151,006 59,498 06/30/2010126378AL2 5,063,381 4,868,454 (194,927) 4,868,454 3,965,013 06/30/20101266734Y5 1,224,634 1,007,545 (217,089) 1,007,545 472,044 06/30/2010126685CZ7 1,642,095 1,452,187 (189,908) 1,452,187 1,310,980 06/30/201012668VAC3 641,421 457,526 (183,895) 457,526 457,526 06/30/201012668XAB1 2,194,174 2,105,612 (88,562) 2,105,612 1,790,524 06/30/201012670BAC3 1,932,178 1,505,695 (426,483) 1,505,695 1,493,473 06/30/201017307G4H8 742,961 689,004 (53,957) 689,004 658,840 06/30/201017307G4L9 12,255,450 12,166,303 (89,147) 12,166,303 9,752,691 06/30/2010362341NJ4 429,154 364,795 (64,359) 364,795 364,795 06/30/201052522QAE2 10,022,393 9,194,961 (827,432) 9,194,961 9,109,790 06/30/201061750YAB5 4,928,190 4,717,450 (210,740) 4,717,450 3,641,611 06/30/2010749580AJ5 299,778 231,540 (68,238) 231,540 124,114 06/30/2010760985K67 1,361,206 1,054,377 (306,829) 1,054,377 595,929 06/30/201076110HPZ6 1,157,087 1,150,704 (6,383) 1,150,704 920,454 06/30/201076110WZW9 44,445 37,144 (7,301) 37,144 32,118 06/30/2010863579Y69 9,195,537 8,076,041 (1,119,496) 8,076,041 6,888,528 06/30/201086359AAY9 3,157,534 3,157,315 (219) 3,157,315 3,062,523 06/30/201087222EAC2 3,454,213 2,538,660 (915,553) 2,538,660 2,502,730 06/30/2010

19.2





000780HN9 340,714 335,678 (5,036) 335,678 227,405 09/30/201002148BAC8 6,380,433 6,292,184 (88,249) 6,292,184 5,490,697 09/30/201005946X2E2 9,996,724 9,941,048 (55,676) 9,941,048 8,213,820 09/30/201005946XGJ6 2,559,415 2,407,001 (152,414) 2,407,001 684,911 09/30/2010059513EG2 150,184 132,924 (17,260) 132,924 19,668 09/30/2010126685CZ7 1,300,253 1,233,830 (66,423) 1,233,830 1,201,454 09/30/2010172973X87 231,243 211,023 (20,220) 211,023 142,430 09/30/201032051GHE8 582,246 433,313 (148,933) 433,313 103,524 09/30/201046631NCR8 8,605,817 8,456,104 (149,713) 8,456,104 9,059,797 09/30/2010525221EB9 865,748 863,096 (2,652) 863,096 751,410 09/30/201061750YAB5 4,717,449 4,622,774 (94,675) 4,622,774 4,247,976 09/30/2010749228AJ1 4,249,811 4,240,125 (9,686) 4,240,125 3,616,582 09/30/2010749580AJ5 231,540 103,948 (127,592) 103,948 57,150 09/30/2010760985XZ9 569,631 331,199 (238,432) 331,199 98,493 09/30/201017307G4L9 12,009,745 11,642,296 (367,449) 11,642,296 10,054,370 09/30/201003072SQY4 137,057 114,885 (22,172) 114,885 109,836 09/30/2010000780KK1 430,969 425,578 (5,391) 425,578 226,305 09/30/201002148BAC8 6,132,233 5,808,256 (323,977) 5,808,256 5,520,888 12/31/201005946XGJ6 2,373,194 669,989 (1,703,206) 669,989 651,545 12/31/201005948KVG1 283,378 241,126 (42,251) 241,126 170,732 12/31/201005949AF54 1,066,043 822,159 (243,884) 822,159 122,920 12/31/2010059513EG2 132,449 54,655 (77,794) 54,655 18,605 12/31/201007386HL66 3,686,459 3,426,016 (260,443) 3,426,016 2,959,697 12/31/20101266734Y5 1,007,545 952,566 (54,979) 952,566 514,719 12/31/2010126673JJ2 1,075,760 389,376 (686,384) 389,376 232,099 12/31/201012669F6J7 340,310 326,143 (14,167) 326,143 113,399 12/31/201012669FG23 158,926 140,803 (18,124) 140,803 67,992 12/31/2010172973J75 902,062 720,182 (181,879) 720,182 339,615 12/31/2010172973X87 201,266 147,393 (53,873) 147,393 143,431 12/31/201017307G4H8 527,207 504,126 (23,081) 504,126 520,635 12/31/201023244FAV6 4,038,097 4,033,514 (4,583) 4,033,514 3,623,987 12/31/201032051GHE8 430,588 316,621 (113,967) 316,621 29,821 12/31/2010525221EB9 843,474 834,479 (8,995) 834,479 747,498 12/31/201061750YAB5 4,585,225 4,349,970 (235,255) 4,349,970 4,452,616 12/31/201069335YAK2 741,141 718,315 (22,826) 718,315 160,422 12/31/201069335YAL0 348,750 151,506 (197,244) 151,506 60,539 12/31/2010749228AJ1 4,095,350 4,083,120 (12,230) 4,083,120 3,597,642 12/31/2010749580AJ5 103,948 66,700 (37,248) 66,700 44,190 12/31/2010760985K67 927,816 645,198 (282,618) 645,198 279,070 12/31/2010760985XZ9 303,970 170,936 (133,035) 170,936 40,455 12/31/201076110WC95 1,895,209 1,024,478 (870,731) 1,024,478 360,727 12/31/201081378AAC5 780,776 677,853 (102,923) 677,853 545,440 12/31/2010000780HN9 298,271 268,425 (29,845) 268,425 146,404 03/31/201102147BAH8 8,150,992 7,656,264 (494,728) 7,656,264 7,656,264 03/31/201102148BAC8 5,731,870 5,492,069 (239,801) 5,492,069 5,301,698 03/31/201102151FAH2 7,191,951 7,130,166 (61,786) 7,130,166 7,130,166 03/31/201105949AJF8 1,709,132 1,563,774 (145,358) 1,563,774 669,002 03/31/2011059513EG2 54,583 31,526 (23,057) 31,526 23,333 03/31/201107386HL66 3,375,872 3,146,680 (229,192) 3,146,680 2,918,426 03/31/201112544NAA5 524,363 511,452 (12,910) 511,452 511,452 03/31/2011126378AL2 4,635,370 4,610,891 (24,479) 4,610,891 4,219,683 03/31/20111266734Y5 952,566 436,109 (516,457) 436,109 436,109 03/31/2011126673JJ2 389,376 201,517 (187,859) 201,517 201,517 03/31/201112669F6J7 321,712 236,129 (85,583) 236,129 275,326 03/31/201112669FG23 140,056 92,573 (47,484) 92,573 29,827 03/31/201112670BAC3 1,364,510 1,353,435 (11,075) 1,353,435 2,390,099 03/31/2011152314LP3 1,056,078 1,038,925 (17,153) 1,038,925 721,300 03/31/2011172973X87 140,485 71,284 (69,202) 71,284 32,539 03/31/201117307G4L9 11,382,560 10,673,154 (709,406) 10,673,154 8,864,987 03/31/201117307GGY8 14,389,574 14,383,461 (6,114) 14,383,461 14,383,461 03/31/201123244FAV6 3,786,171 3,474,736 (311,435) 3,474,736 3,389,758 03/31/201132051GHE8 314,732 157,987 (156,746) 157,987 31,906 03/31/2011

19.3





36185N4U1 1,280,176 1,125,260 (154,917) 1,125,260 918,399 03/31/20113622ELAC0 6,657,728 6,183,805 (473,923) 6,183,805 4,874,055 03/31/2011456681AE5 6,545,424 4,623,453 (1,921,971) 4,623,453 4,771,194 03/31/2011525221EB9 794,581 736,328 (58,254) 736,328 711,596 03/31/201161750YAB5 4,239,822 3,997,189 (242,634) 3,997,189 3,607,752 03/31/201169335YAK2 715,615 696,501 (19,115) 696,501 220,893 03/31/201169335YAL0 151,132 73,290 (77,842) 73,290 53,078 03/31/2011749228AJ1 3,922,034 3,918,194 (3,839) 3,918,194 3,352,945 03/31/2011760985XZ9 155,608 36,271 (119,337) 36,271 36,271 03/31/201176110WC95 1,024,478 577,644 (446,834) 577,644 364,855 03/31/201176114HAM7 12,142,275 11,892,989 (249,286) 11,892,989 10,044,853 03/31/201176116LAG9 481,138 471,140 (9,998) 471,140 390,010 03/31/201181378AAC5 677,853 556,701 (121,152) 556,701 509,303 03/31/201194980DAH1 623,844 599,138 (24,706) 599,138 366,168 03/31/2011949812AA9 470,664 466,676 (3,987) 466,676 460,620 03/31/201194985RAQ5 13,601,051 13,564,743 (36,307) 13,564,743 13,251,652 03/31/2011059513EG2 31,526 19,954 (11,572) 19,954 13,938 06/30/2011172973X87 69,980 34,351 (35,630) 34,351 61,740 06/30/201169335YAL0 73,290 71,724 (1,566) 71,724 31,301 06/30/201132051GHE8 156,925 102,731 (54,194) 102,731 23,972 06/30/201112669F6J7 232,786 153,833 (78,953) 153,833 238,279 06/30/201105948KVG1 240,347 208,335 (32,011) 208,335 171,793 06/30/201117307G4H8 336,759 308,459 (28,299) 308,459 308,459 06/30/2011000780KK1 374,131 368,144 (5,987) 368,144 268,894 06/30/201105948XXM8 393,810 261,770 (132,040) 261,770 219,994 06/30/201112544NAA5 489,847 489,690 (157) 489,690 487,141 06/30/201194980DAH1 546,491 522,022 (24,469) 522,022 348,265 06/30/201174957XAA3 563,870 546,770 (17,100) 546,770 509,815 06/30/2011760985K67 634,550 611,375 (23,175) 611,375 246,993 06/30/2011172973J75 653,545 634,136 (19,410) 634,136 534,513 06/30/201105946XGJ6 656,744 600,981 (55,763) 600,981 600,981 06/30/201169335YAK2 695,652 432,391 (263,261) 432,391 121,131 06/30/2011525221EB9 717,047 691,696 (25,351) 691,696 715,187 06/30/201102151CBK1 1,680,954 1,656,631 (24,323) 1,656,631 1,523,624 06/30/201105948XUG4 1,805,536 1,670,428 (135,108) 1,670,428 437,914 06/30/201107384MVR0 1,990,792 1,986,712 (4,080) 1,986,712 1,986,712 06/30/201122541NW96 2,019,079 2,015,006 (4,072) 2,015,006 2,009,053 06/30/201187222EAC2 2,538,660 2,480,145 (58,515) 2,480,145 2,480,145 06/30/201107386HL66 3,106,743 3,077,409 (29,334) 3,077,409 2,600,867 06/30/201123244FAV6 3,345,813 3,270,408 (75,405) 3,270,408 3,220,827 06/30/2011749228AJ1 3,764,160 3,734,234 (29,926) 3,734,234 3,228,525 06/30/201161750YAB5 3,937,505 3,813,987 (123,518) 3,813,987 3,423,900 06/30/201107387QAM2 4,053,995 3,204,639 (849,356) 3,204,639 3,089,761 06/30/201102148AAF3 4,218,041 3,817,228 (400,812) 3,817,228 3,215,331 06/30/2011126378AL2 4,521,651 4,482,287 (39,364) 4,482,287 3,277,597 06/30/20113622ELAC0 6,054,625 5,853,547 (201,078) 5,853,547 5,095,836 06/30/201102151FAH2 6,929,386 6,781,713 (147,673) 6,781,713 6,501,311 06/30/201146631NCR8 7,826,129 7,762,605 (63,524) 7,762,605 8,344,869 06/30/201194985RAQ5 13,564,743 13,423,894 (140,850) 13,423,894 12,932,475 06/30/201161748HKG5 18,040,544 17,363,358 (677,186) 17,363,358 16,997,837 06/30/2011000780KK1 346,944 344,273 (2,671) 344,273 275,013 09/30/201105946XGJ6 598,856 448,197 (150,659) 448,197 281,615 09/30/201105948KVG1 208,335 160,388 (47,948) 160,388 160,388 09/30/201105948XUG4 1,636,380 417,799 (1,218,581) 417,799 417,799 09/30/201105949AF54 805,439 798,919 (6,520) 798,919 309,615 09/30/2011059513EG2 19,954 8,722 (11,232) 8,722 7,400 09/30/2011126378AL2 4,454,836 4,121,958 (332,878) 4,121,958 3,271,138 09/30/2011126673JJ2 201,517 190,332 (11,185) 190,332 190,332 09/30/201112669FG23 91,572 87,076 (4,496) 87,076 51,840 09/30/2011172973J75 638,208 454,240 (183,967) 454,240 487,899 09/30/201122541NW96 1,803,932 1,783,868 (20,063) 1,783,868 1,783,868 09/30/201132051GHE8 102,076 24,491 (77,586) 24,491 9,278 09/30/2011

19.4





36185N4U1 1,059,006 819,875 (239,131) 819,875 767,256 09/30/201136185NY79 774,206 610,994 (163,212) 610,994 162,644 09/30/201136242D7Y3 1,935,423 1,678,595 (256,828) 1,678,595 932,207 09/30/201145660L6U8 4,809,503 4,691,231 (118,273) 4,691,231 4,515,055 09/30/2011525221EB9 660,449 656,677 (3,772) 656,677 680,137 09/30/201155265KV55 548,883 513,088 (35,795) 513,088 381,512 09/30/201161750YAB5 3,744,911 3,531,584 (213,327) 3,531,584 2,683,782 09/30/201169335YAK2 432,391 308,479 (123,911) 308,479 156,177 09/30/2011749228AJ1 3,640,433 3,583,448 (56,985) 3,583,448 3,054,488 09/30/201174957XAA3 501,010 473,607 (27,403) 473,607 445,123 09/30/201176116LAG9 450,311 446,972 (3,338) 446,972 339,933 09/30/2011805564QE4 1,131,854 953,779 (178,074) 953,779 493,180 09/30/2011805564QF1 532,221 326,582 (205,638) 326,582 224,383 09/30/2011863579Y69 6,556,413 5,689,813 (866,601) 5,689,813 5,486,596 09/30/201186359A4S9 2,005,243 1,249,010 (756,233) 1,249,010 1,249,010 09/30/201186359AAY9 2,582,855 2,576,048 (6,806) 2,576,048 2,513,598 09/30/201192922FHF8 3,186,746 3,124,095 (62,651) 3,124,095 2,367,684 09/30/201194980DAH1 479,266 397,624 (81,642) 397,624 323,711 09/30/201107386HL66 2,956,950 2,447,294 (509,656) 2,447,294 1,834,063 12/31/201123244FAV6 2,976,018 2,572,592 (403,426) 2,572,592 2,485,233 12/31/201105949AF54 792,215 461,618 (330,597) 461,618 291,143 12/31/201105946XGJ6 447,504 194,925 (252,580) 194,925 193,766 12/31/201146631NCR8 7,429,549 7,178,899 (250,649) 7,178,899 7,178,899 12/31/201102148BAC8 5,016,575 4,766,024 (250,552) 4,766,024 4,139,652 12/31/20113622ELAC0 5,598,114 5,383,121 (214,993) 5,383,121 4,139,689 12/31/2011760985K67 610,713 420,729 (189,984) 420,729 215,984 12/31/2011805564QE4 948,503 769,930 (178,573) 769,930 492,737 12/31/201176114HAM7 11,004,812 10,856,537 (148,275) 10,856,537 8,304,453 12/31/201192922FHF8 3,104,322 2,981,699 (122,623) 2,981,699 2,392,688 12/31/201194981CAA7 540,076 441,770 (98,306) 441,770 367,456 12/31/201161750YAB5 3,477,524 3,383,770 (93,754) 3,383,770 2,612,886 12/31/201194985RAQ5 13,423,894 13,330,680 (93,214) 13,330,680 12,451,076 12/31/201186359A4S9 1,176,464 1,087,806 (88,659) 1,087,806 1,087,806 12/31/201176110WC95 577,644 490,805 (86,839) 490,805 333,758 12/31/201169335YAK2 308,479 222,668 (85,811) 222,668 174,922 12/31/201194980DAH1 364,179 290,108 (74,071) 290,108 298,113 12/31/201112669FG23 86,896 25,009 (61,887) 25,009 25,009 12/31/2011172973J75 439,946 386,620 (53,327) 386,620 490,020 12/31/201136185N4U1 775,548 722,548 (52,999) 722,548 722,548 12/31/2011805564QF1 326,582 274,096 (52,487) 274,096 230,253 12/31/201136185NY79 602,209 555,271 (46,937) 555,271 156,313 12/31/201105949AJF8 1,528,447 1,482,337 (46,110) 1,482,337 416,384 12/31/201105948XUG4 409,505 366,039 (43,466) 366,039 366,039 12/31/201194979XAF4 205,643 163,984 (41,659) 163,984 75,597 12/31/201169335YAL0 71,724 31,301 (40,423) 31,301 32,162 12/31/201112669F6J7 149,468 113,791 (35,676) 113,791 228,826 12/31/201105948KVG1 160,388 131,037 (29,350) 131,037 131,037 12/31/201102151CBK1 1,622,525 1,599,229 (23,296) 1,599,229 1,377,358 12/31/201132051GHE8 24,387 3,119 (21,268) 3,119 3,119 12/31/201102146VAC6 3,540,791 3,522,803 (17,989) 3,522,803 3,522,803 12/31/2011749228AJ1 3,476,936 3,468,093 (8,842) 3,468,093 2,594,141 12/31/201117307G4H8 199,646 191,837 (7,809) 191,837 191,837 12/31/2011525221EB9 635,201 627,781 (7,420) 627,781 626,200 12/31/2011059513EG2 8,511 1,213 (7,298) 1,213 1,213 12/31/201187222EAC2 2,480,145 2,473,190 (6,955) 2,473,190 2,473,190 12/31/201176116LAG9 432,970 426,600 (6,371) 426,600 311,288 12/31/2011000780KK1 310,804 306,920 (3,884) 306,920 248,018 12/31/201174957XAA3 395,613 392,586 (3,026) 392,586 326,021 12/31/2011172973X87 37,777 35,131 (2,646) 35,131 71,524 12/31/201103072SQY4 114,885 112,695 (2,190) 112,695 89,959 12/31/2011126673JJ2 190,332 189,079 (1,253) 189,079 189,079 12/31/201122541NW96 1,772,209 1,772,188 (21) 1,772,188 1,772,188 12/31/2011

19.5





000780KK1 286,586 281,325 (5,261) 281,325 250,289 03/31/201202147BAH8 7,286,153 6,979,174 (306,979) 6,979,174 6,979,174 03/31/201202151CBK1 1,562,613 1,512,039 (50,574) 1,512,039 1,393,189 03/31/201203072SQY4 112,695 108,159 (4,537) 108,159 77,426 03/31/201205946X2E2 9,941,048 9,855,241 (85,808) 9,855,241 9,694,690 03/31/201205946XGJ6 193,378 136,110 (57,268) 136,110 136,110 03/31/201205948KVG1 129,194 25,293 (103,902) 25,293 25,293 03/31/201205948XUG4 360,146 285,921 (74,225) 285,921 285,921 03/31/201205949AF54 459,916 206,490 (253,426) 206,490 181,285 03/31/201205949AJF8 1,470,646 1,350,336 (120,310) 1,350,336 350,192 03/31/2012059513EG2 1,007 2 (1,005) 2 2 03/31/201207388YBG6 58,331 44,645 (13,685) 44,645 5,480 03/31/201212544NAA5 400,005 399,305 (700) 399,305 366,112 03/31/2012126673JJ2 189,079 171,828 (17,251) 171,828 171,828 03/31/201212669F6J7 112,088 105,542 (6,546) 105,542 226,849 03/31/201212669FG23 25,009 21,131 (3,877) 21,131 21,131 03/31/2012152314LP3 922,283 732,901 (189,382) 732,901 548,618 03/31/2012172973J75 377,797 321,778 (56,018) 321,778 461,916 03/31/2012172973X87 21,686 7 (21,679) 7 7 03/31/201217307G4H8 156,534 143,082 (13,452) 143,082 136,228 03/31/201217307G4L9 9,970,566 9,363,779 (606,787) 9,363,779 6,923,621 03/31/201232051GHE8 2,517 5 (2,512) 5 5 03/31/201236185N4U1 686,371 646,333 (40,037) 646,333 646,333 03/31/201236185NY79 543,271 516,760 (26,511) 516,760 128,325 03/31/2012362341WZ8 9,035,574 8,900,405 (135,169) 8,900,405 8,078,206 03/31/2012378961AY2 943,925 783,984 (159,941) 783,984 677,597 03/31/201246627MER4 429,526 424,417 (5,109) 424,417 418,821 03/31/201246631BAU9 4,598 184 (4,414) 184 184 03/31/201255265KUR8 893,344 849,084 (44,260) 849,084 804,927 03/31/2012617453AG0 3,456 2,166 (1,290) 2,166 2,166 03/31/2012617453AH8 1,776 67 (1,709) 67 67 03/31/201261750YAB5 3,311,958 3,309,337 (2,621) 3,309,337 2,931,320 03/31/201269335YAK2 222,668 121,131 (101,537) 121,131 192,262 03/31/2012749228AJ1 3,380,120 3,312,033 (68,087) 3,312,033 2,794,836 03/31/201274957XAA3 353,895 350,471 (3,425) 350,471 325,349 03/31/201276110HPZ6 1,024,396 948,896 (75,501) 948,896 1,162,011 03/31/201276116LAG9 413,365 408,666 (4,700) 408,666 291,325 03/31/2012805564QE4 769,930 715,723 (54,208) 715,723 511,038 03/31/2012805564QF1 274,096 251,559 (22,537) 251,559 256,020 03/31/201281378AAC5 556,701 522,283 (34,418) 522,283 444,241 03/31/201286359A4S9 1,030,929 950,665 (80,264) 950,665 950,665 03/31/201286359AAY9 2,323,538 2,261,371 (62,166) 2,261,371 2,269,041 03/31/201292922FHF8 2,962,374 2,756,881 (205,492) 2,756,881 2,385,047 03/31/201293934NAJ4 4,211,380 4,180,899 (30,481) 4,180,899 4,180,899 03/31/201294979XAF4 155,687 112,857 (42,829) 112,857 44,998 03/31/201294985RAQ5 12,913,110 12,861,457 (51,653) 12,861,457 12,426,198 03/31/2012000780KK1 260,694 254,258 (6,437) 254,258 236,750 06/30/201200703RAE0 5,546,628 5,523,514 (23,115) 5,523,514 4,791,298 06/30/201202147BAH8 6,785,521 6,721,490 (64,031) 6,721,490 6,721,490 06/30/201202151CBK1 1,456,539 1,418,469 (38,070) 1,418,469 1,303,982 06/30/201202151FAH2 6,020,204 5,925,472 (94,732) 5,925,472 6,061,494 06/30/201203072SQY4 108,159 104,740 (3,418) 104,740 65,288 06/30/201205946X2E2 9,845,366 9,642,491 (202,875) 9,642,491 9,451,681 06/30/201205946XGJ6 130,555 125,351 (5,204) 125,351 125,351 06/30/201205948KVG1 17,503 390 (17,113) 390 390 06/30/201205948XUG4 280,559 177,591 (102,968) 177,591 115,708 06/30/201205949AJF8 1,339,604 1,193,887 (145,717) 1,193,887 303,026 06/30/2012059513EG2 2 - (2) - - 06/30/201207388YBG6 44,645 5,480 (39,165) 5,480 6,850 06/30/2012126378AL2 3,984,257 3,802,962 (181,295) 3,802,962 3,386,103 06/30/2012126670CH9 295,349 293,425 (1,925) 293,425 293,425 06/30/2012126673JJ2 171,828 152,493 (19,335) 152,493 152,493 06/30/2012

19.6





12669FG23 15,799 15,642 (157) 15,642 1,286 06/30/2012152314LP3 708,241 687,126 (21,115) 687,126 539,156 06/30/201216162WMB2 9,893,162 9,612,280 (280,882) 9,612,280 9,612,280 06/30/2012172973J75 298,835 272,623 (26,212) 272,623 409,365 06/30/2012172973X87 7 - (7) - - 06/30/201222546BAJ9 3,484,328 3,372,698 (111,630) 3,372,698 3,372,698 06/30/201232051GHE8 5 - (5) - - 06/30/201236185N4U1 616,994 432,798 (184,196) 432,798 432,798 06/30/2012362341WZ8 8,392,336 8,299,340 (92,996) 8,299,340 7,653,268 06/30/2012378961AY2 746,474 707,394 (39,080) 707,394 321,396 06/30/201245660L6U8 4,390,273 4,326,897 (63,376) 4,326,897 4,246,946 06/30/201246627MER4 415,416 405,970 (9,447) 405,970 405,538 06/30/201246631BAU9 184 - (184) - - 06/30/201255265KV55 491,166 473,012 (18,154) 473,012 430,480 06/30/2012617453AG0 2,166 1,536 (630) 1,536 1,536 06/30/2012617453AH8 15 - (15) - - 06/30/201261750YAB5 3,231,494 3,222,305 (9,189) 3,222,305 2,716,875 06/30/201269335YAK2 121,131 97,832 (23,299) 97,832 97,832 06/30/201269335YAL0 31,301 17,404 (13,897) 17,404 17,404 06/30/2012749228AJ1 3,199,958 3,062,335 (137,623) 3,062,335 2,677,949 06/30/201274957XAA3 336,277 332,329 (3,949) 332,329 311,940 06/30/201276110HPZ6 931,614 923,825 (7,790) 923,825 1,000,418 06/30/201276114HAM7 9,977,926 9,829,856 (148,071) 9,829,856 8,410,099 06/30/201276116LAG9 396,034 390,742 (5,291) 390,742 230,193 06/30/2012805564QF1 251,559 246,841 (4,718) 246,841 260,215 06/30/201286359A4S9 908,098 868,649 (39,450) 868,649 868,649 06/30/201286359AAY9 2,192,247 2,190,660 (1,588) 2,190,660 2,194,437 06/30/201292922FHF8 2,739,311 2,549,560 (189,751) 2,549,560 2,356,736 06/30/201293934NAJ4 4,089,904 4,038,150 (51,754) 4,038,150 4,038,150 06/30/201294979XAF4 101,509 98,591 (2,919) 98,591 43,007 06/30/201294980DAH1 246,638 238,762 (7,876) 238,762 257,894 06/30/201294981CAA7 366,206 314,622 (51,584) 314,622 251,239 06/30/201294985RAQ5 12,217,524 11,928,439 (289,084) 11,928,439 11,808,164 06/30/201203072SQY4 104,740 92,210 (12,531) 92,210 52,467 09/30/201205946X2E2 9,186,501 9,089,408 (97,093) 9,089,408 9,517,082 09/30/201205948KVG1 204 4 (200) 4 4 09/30/201205949AJF8 1,184,427 1,124,163 (60,264) 1,124,163 272,186 09/30/2012126378AL2 3,736,765 3,674,529 (62,235) 3,674,529 3,561,269 09/30/2012126673JJ2 152,493 129,616 (22,878) 129,616 129,616 09/30/201212669FG23 7,026 1 (7,025) 1 1 09/30/201236185N4U1 418,867 222,911 (195,956) 222,911 153,742 09/30/201236246LAT8 20,000 9,302 (10,698) 9,302 9,302 09/30/2012378961AY2 671,296 599,635 (71,661) 599,635 287,345 09/30/201245660L6U8 4,265,609 4,165,550 (100,059) 4,165,550 4,837,344 09/30/201246630VAU6 3,560 2,777 (783) 2,777 2,777 09/30/201255265KV55 465,989 465,758 (231) 465,758 414,910 09/30/2012617453AG0 1,536 1,441 (95) 1,441 1,441 09/30/201261750YAB5 3,159,006 3,120,380 (38,626) 3,120,380 3,196,647 09/30/2012749580AJ5 38,924 25,788 (13,136) 25,788 30,082 09/30/2012760985XZ9 15,854 15,377 (477) 15,377 10,536 09/30/201276116LAG9 375,841 374,423 (1,418) 374,423 278,292 09/30/2012805564QE4 715,723 490,452 (225,270) 490,452 549,020 09/30/2012805564QF1 246,841 224,383 (22,458) 224,383 278,000 09/30/201286359A4S9 842,363 762,973 (79,390) 762,973 762,973 09/30/201292922FHF8 2,532,364 2,493,965 (38,398) 2,493,965 1,742,940 09/30/201294979XAF4 91,153 72,506 (18,647) 72,506 42,472 09/30/201294981CAA7 300,328 283,152 (17,176) 283,152 241,924 09/30/201294985RAQ5 11,441,017 11,435,594 (5,423) 11,435,594 11,942,213 09/30/201202151FAH2 5,389,914 5,326,254 (63,660) 5,326,254 6,595,376 12/31/201203072SQY4 39,571 26,195 (13,376) 26,195 26,195 12/31/201205946X2E2 8,710,265 8,634,396 (75,868) 8,634,396 9,359,596 12/31/201205946XGJ6 88,553 42,704 (45,849) 42,704 20,179 12/31/2012

19.7





05948XUG4 157,461 139,483 (17,978) 139,483 139,483 12/31/201205949AJF8 1,115,061 1,036,685 (78,376) 1,036,685 231,953 12/31/201205952AAW4 191,829 122,466 (69,363) 122,466 100,698 12/31/2012126378AL2 3,630,654 3,625,110 (5,544) 3,625,110 3,877,794 12/31/2012126673JJ2 129,616 102,269 (27,347) 102,269 102,269 12/31/2012172973J75 106,017 56,896 (49,121) 56,896 56,896 12/31/201217307G4L9 8,759,977 8,499,534 (260,443) 8,499,534 7,917,916 12/31/201236185NY79 220,204 141,944 (78,260) 141,944 141,944 12/31/20123622ELAC0 5,121,719 4,692,038 (429,681) 4,692,038 4,428,299 12/31/201236242D7Y3 1,312,249 1,254,986 (57,263) 1,254,986 1,254,986 12/31/2012378961AY2 279,532 250,396 (29,136) 250,396 250,396 12/31/201252522QAE2 6,073,735 6,017,475 (56,260) 6,017,475 7,033,444 12/31/201255265KUR8 592,185 560,545 (31,639) 560,545 555,186 12/31/201255265KV55 412,922 399,859 (13,064) 399,859 399,859 12/31/201261750YAB5 3,071,487 3,014,664 (56,823) 3,014,664 3,162,036 12/31/201269335YAL0 259 36 (222) 36 36 12/31/2012760985XZ9 13,373 11,511 (1,862) 11,511 8,218 12/31/201292922FHF8 2,048,871 1,863,133 (185,738) 1,863,133 1,863,133 12/31/201294979XAF4 43,371 42,875 (496) 42,875 42,875 12/31/201294981CAA7 268,776 239,173 (29,602) 239,173 239,708 12/31/2012

890,561,085$ 834,756,616$ (55,804,469)$ 834,756,616$ 749,481,851$

(4) The gross unrealized losses and fair value of loan-backed securities aggregated by the length of time the individual securities have been in a continuous temporarily impaired position are as follows:

a. The aggregate amount of unrealized losses:

1. Less than 12 Months $ (4,171,614) 2. 12 Months or Longer $ (15,514,837)

b. The aggregate related fair value of securities with unrealized losses:

1. Less than 12 Months $ 172,836,189 2. 12 Months or Longer $ 135,328,861

(5) Declines in the fair value of investments that are considered in the judgment of management to be

other than temporary are reported as realized losses. Management evaluates, among other things, the financial position and prospects of the issuer, conditions in the issuer's industry and geographical area, liquidity of the investment, changes in the amount or timing of expected future cash flows from the investment and recent changes in the credit ratings of the issuer by a ratings agency to determine if and when a decline in the fair value of an investment below amortized cost is other than temporary. The length of time and extent to which the fair value of the investment is lower than its amortized cost, the Company's ability and intent to retain the investment to allow for anticipated recovery in the investment's fair value and whether the Company has made a decision to sell the investment are other factors also considered.

E. Not applicable.

F. The Company had real estate held for sale with a book/adjusted carrying value of $499 and $124,851

at December 31, 2012 and 2011, respectively. During 2012, the Company did not recognize other than temporary impairment losses due to declines in the fair value below the book value of these properties.

G. Not applicable.

6. JOINT VENTURES, PARTNERSHIPS AND LIMITED LIABILITY COMPANIES Not applicable. 7. INVESTMENT INCOME Not applicable. 19.8

Annual Statement for the year 2012 of the Reliance Standard Life Insurance Company NOTES TO FINANCIAL STATEMENTS 8. DERIVATIVE INSTRUMENTS

A-C. A currency forward is an agreement to buy or sell a foreign currency, in return for U.S. dollars, at an exchange rate agreed upon today, to settle on a specific future date. All of the Company’s forward contracts are traded over-the-counter, which exposes the Company to counterparty risk to the extent there are unrealized gains on open positions. To minimize counterparty risk, the Company evaluates all counterparties based on credit ratings and maintains master agreements with netting provisions.

An option is an agreement that gives the buyer the right to buy (call option) or sell (put option) a

financial instrument at a specified price within a specified time period. The buyer of an option pays a premium to the seller on the settlement date. This premium is the buyer’s only cash requirement and represents the maximum amount at risk. The seller (or writer) of an option receives a premium from the buyer on the settlement date. The seller settles changes in the market value daily in cash. The Company is exposed to counterparty risk with respect to any over-the-counter options and minimizes this risk by requiring collateral from counterparties in an amount equal to any unrealized gains.

An interest rate futures contract is an agreement to buy or sell U.S. Treasury Bonds to settle on a

specific future date. All of the Company's futures contracts are exchange traded which minimize counterparty risk. The Company satisfies the initial margin requirements with cash.

During 2012, the Company used currency forward contracts to minimize the currency risk inherent in

certain bond investments denominated in foreign currencies. The Company also used interest rate futures contracts to minimize the adverse movements of interest rates related to certain bond investments.

D. At December 31, 2012, realized losses on derivatives were $4,920,725. The portion of unassigned surplus represented by cumulative net unrealized gains on derivatives totaled $55,490 at December 31, 2012.

E-F. Not applicable. 9. INCOME TAXES A. The Components of the net deferred tax asset (liability) are as follows: 1.

2012Ordinary Capital Total

(a) Gross Deferred Tax Assets 55,366,754 35,133,344 90,500,098 (b) Statutory Valuation Allowance Adjustments - - - (c) Adjusted Gross Deferred Tax Assets (1a-1b) 55,366,754 35,133,344 90,500,098 (d) Deferred Tax Assets Nonadmitted 13,590,555 32,363,666 45,954,222 (e)

Subtotal Net Admitted Deferred Tax Asset (1c-1d) 41,776,199 2,769,678 44,545,877 (f) Deferred Tax Liabilities 19,159,575 2,769,678 21,929,253 (g) Net Admitted Deferred Tax Asset/(Net Deferred

Tax Liability) (1e-1f) 22,616,624 - 22,616,624


(a) Gross Deferred Tax Assets 53,781,697 45,212,664 98,994,361 (b) Statutory Valuation Allowance Adjustments - - - (c) Adjusted Gross Deferred Tax Assets (1a-1b) 53,781,697 45,212,664 98,994,361 (d) Deferred Tax Assets Nonadmitted 14,251,635 44,339,953 58,591,588 (e)

Subtotal Net Admitted Deferred Tax Asset (1c-1d) 39,530,062 872,711 40,402,773 (f) Deferred Tax Liabilities 15,962,154 - 15,962,154 (g) Net Admitted Deferred Tax Asset/(Net Deferred

Tax Liability) (1e-1f) 23,567,908 872,711 24,440,619

19.9


ChangeOrdinary Capital Total

(a) Gross Deferred Tax Assets 1,585,057 (10,079,320) (8,494,263) (b) Statutory Valuation Allowance Adjustments - - - (c) Adjusted Gross Deferred Tax Assets (1a-1b) 1,585,057 (10,079,320) (8,494,263) (d) Deferred Tax Assets Nonadmitted (661,080) (11,976,287) (12,637,367) (e)

Subtotal Net Admitted Deferred Tax Asset (1c-1d) 2,246,137 1,896,967 4,143,104 (f) Deferred Tax Liabilities 3,197,421 2,769,678 5,967,099 (g) Net Admitted Deferred Tax Asset/(Net Deferred

Tax Liability) (1e-1f) (951,284) (872,711) (1,823,995)

2.2012

Admission Calculation Components SSAP No. 101 Ordinary Capital Total

(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks. 22,616,624 - 22,616,624

(b) Adjusted Gross Deferred Tax Assets Expected To Be Realized (Excluding The Amount Of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation. (The Lesser of 2(b)1 and 2(b)2 Below) - - -

1. Adjusted Gross Deferred Tax Assets Expected to be realized Following the Balance Sheet Date. - - - 2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold. XXX XXX 80,677,334

(c) Adjusted Gross Deferred Tax Assets (Excluding The Amount of Deferred Tax Assets From 2(a) and 2(b) above) Offset by Gross Deferred Tax Liabilities. 19,159,575 2,769,678 21,929,253

(d) Deferred Tax Assets Admitted as the result of application of SSAP No. 101. Total (2(a) + 2(b) + 2(c)). 41,776,199 2,769,678 44,545,877


(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks. 23,567,908 - 23,567,908

(b) Adjusted Gross Deferred Tax Assets Expected To Be Realized (Excluding The Amount Of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation. (The Lesser of 2(b)1 and 2(b)2 Below) - 872,711 872,711

1. Adjusted Gross Deferred Tax Assets Expected to be realized Following the Balance Sheet Date. - 872,711 872,711 2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold. XXX XXX 74,510,073

(c) Adjusted Gross Deferred Tax Assets (Excluding The Amount of Deferred Tax Assets From 2(a) and 2(b) above) Offset by Gross Deferred Tax Liabilities. 15,962,154 - 15,962,154

(d) Deferred Tax Assets Admitted as the result of application of SSAP No. 101. Total (2(a) + 2(b) + 2(c)). 39,530,062 872,711 40,402,773

19.10


ChangeOrdinary Capital Total

(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks. (951,284) - (951,284)

(b) Adjusted Gross Deferred Tax Assets Expected To Be Realized (Excluding The Amount Of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation. (The Lesser of 2(b)1 and 2(b)2 Below) - (872,711) (872,711)

1. Adjusted Gross Deferred Tax Assets Expected to be realized Following the Balance Sheet Date. - (872,711) (872,711) 2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold. XXX XXX 6,167,261

(c) Adjusted Gross Deferred Tax Assets (Excluding The Amount of Deferred Tax Assets From 2(a) and 2(b) above) Offset by Gross Deferred Tax Liabilities. 3,197,421 2,769,678 5,967,099

(d) Deferred Tax Assets Admitted as the result of application of SSAP No. 101. Total (2(a) + 2(b) + 2(c)). 2,246,137 1,896,967 4,143,104

3. 2012 2011(a) Ratio Percentage Used to Determine Recovery

Period And Threshold limitation Amount. 331.816% 355.893%(b) Amount of Adjusted Capital And Surplus Used to

Determine Recovery Period And Threshold Limitation In 2(b)2 Above. 80,677,334 74,510,073

4.

2012Ordinary Percent

Capital Percent

Total Percent

Impact of Tax-Planning Strategies

(a) Adjusted Gross DTAs (% of Total Adjusted Gross DTAs) - - -

(b) Net Admitted Adjusted Gross DTAs (% of Total Net Admitted Adjusted Gross DTAs) - - -

(c) Does the Company's tax planning strategies include the use of reinsurance? Yes ____ No X

2011Ordinary Percent

Capital Percent

Total Percent




ChangeOrdinary Percent

Capital Percent

Total Percent




* As reported on the statutory balance sheet for the most recently filed statement with the domiciliary state commissioner adjusted in accordance with SSAP No. 10R, Paragraph 10bii

19.11

Annual Statement for the year 2012 of the Reliance Standard Life Insurance Company NOTES TO FINANCIAL STATEMENTS B. Not Applicable C. Current income taxes incurred consist of the following major components:

2012 2011 Change1. Current Income Tax

(a) Federal 34,596,487 37,224,507 (2,628,020) (b) Foreign 902,109 174,988 727,121 (c) Subtotal 35,498,596 37,399,495 (1,900,899) (d) Federal income tax on net capital gains (7,314,018) (6,737,335) (576,683) (e) Utilization of capital loss carry-forwards - - - (f) Other - - - (g) Federal and foreign income taxes incurred 28,184,578 30,662,160 (2,477,582)

2. Deferred Tax Assets:

(a) Ordinary

(1) Discounting of unpaid losses 14,915,133 13,767,884 1,147,249 (2) Unearned premium reserve - - - (3) Policyholder reserves - - - (4) Investments - - - (5) Deferred acquisition costs 22,466,749 19,341,347 3,125,402 (6) Policyholder dividends accrual - - - (7) Fixed assets 2,186,465 1,983,888 202,577 (8) Compensation and benefits accrual - - - (9) Pension accrual 8,594,508 10,779,586 (2,185,078) (10) Receivables - nonadmitted - - - (11) Net operating loss carry-forward - - - (12) Tax credit carry-forward - - - (13) Other (including items <5% of total ordinary tax assets) 7,203,899 7,908,992 (705,093) (99) Subtotal 55,366,754 53,781,697 1,585,057

(b) Statutory valuation allowance adjustment - - - (c) Nonadmitted 13,590,555 14,251,635 (661,080)

(d) Admitted ordinary deferred tax assets (2a99 - 2b - 2c) 41,776,199 39,530,062 2,246,137

(e) Capital

(1) Investments 31,830,334 41,188,456 (9,358,122) (2) Net Capital loss carry-forward - - - (3) Real estate - - - (4) Other (including items <5% of total capital tax assets) 3,303,010 4,024,208 (721,198) (99) Subtotal 35,133,344 45,212,664 (10,079,320)

(f) Statutory valuation allowance adjustment - - - (g) Nonadmitted 32,363,666 44,339,953 (11,976,287)

(h) Admitted capital deferred tax assets (2e99 - 2f - 2g) 2,769,678 872,711 1,896,967

(i) Admitted deferred tax assets (2d + 2h) 44,545,877 40,402,773 4,143,104 19.12


3. Deferred Tax Liabilities:

(a) Ordinary

(1) Investments 18,208,089 14,695,307 3,512,782 (2) Fixed Assets - - - (3) Deferred and uncollected premium - - - (4) Policyholder reserves - - - (5) Other (including items <5% of total ordinary tax liabilities) 951,486 1,266,847 (315,361) (99) Subtotal 19,159,575 15,962,154 3,197,421

(b) Capital

(1) Investments - - - (2) Real estate - - - (4) Other (including items <5% of total capital tax liabilities) 2,769,678 - 2,769,678 (99) Subtotal 2,769,678 - 2,769,678

(c) Deferred tax liabilities (3a99 + 3b99) 21,929,253 15,962,154 5,967,099

4. Net deferred tax assets/liabilities (2i - 3c) 22,616,624 24,440,619 (1,823,995)

D. Reconciliation of Federal Income Tax Rate to Actual Effective Rate.

Among the more significant book tax adjustments were the following:

Income EffectiveTax Tax Rate

Expense (%)

Provision computed at statutory rate 40,796,127 35.0%Tax-exempt interest (2,150,727) -1.8%Amortization of interest maintenance reserve (2,873,285) -2.5%Change in nonadmitted assets 207,214 0.2%Other (4,992,595) -4.3%

Total 30,986,733 26.6%

Federal and foreign income taxes incurred 35,498,596 30.5%Realized capital gains (losses) tax (7,314,018) -6.3%Change in net deferred income taxes 2,802,155 2.4%

Total statutory income taxes 30,986,733 26.6%

E. Operating Loss and Tax Credit Carryforwards and Protective Tax Deposits

1. Not Applicable

2. The following are income taxes incurred in the current and prior year that will be available for recoupment in the event of future net losses:

Amount of Tax Year Incurred Ordinary Capital Total 2012 $40,832,031 $ 8,335,821 $49,167,852 2011 33,534,062 5,352,813 38,886,875 2010 29,912,633 3,045,947 32,958,580

F. (1) The Company consolidates its federal income tax return with the return of its parent, Delphi

Financial Group, Inc. (“DFG”). DFG and all of its direct and indirect subsidiaries are members of the consolidated tax group. See Schedule Y, Part 1 for a list of the members of the consolidated tax group.

(2) The method of allocation between the companies is subject to a written tax allocation

agreement approved by the Company’s Board of Directors. The agreement requires the Company to accrue federal taxes based on the amount of tax it would have paid or received if it had filed on a separate return basis with the Internal Revenue Service. Intercompany tax balances are settled within 15 days after filing a tax return or receipt of a refund.

19.13

Annual Statement for the year 2012 of the Reliance Standard Life Insurance Company NOTES TO FINANCIAL STATEMENTS 10. INFORMATION CONCERNING PARENT, SUBSIDIARIES AND AFFILIATES A-C. On December 21, 2011, the Company's ultimate parent, DFG, entered into an Agreement and Plan of

Merger with Tokio Marine Holdings, Inc., a Japanese corporation ("Tokio Marine"), and TM Investment (Delaware) Inc. ("TM Sub"), a Delaware corporation which was wholly owned by Tokio Marine & Nichido Fire Insurance Co., Ltd, an insurance company domiciled in Japan ("TMNF") which is a subsidiary of Tokio Marine. After being approved by DFG's stockholders and by the relevant regulatory authorities in Japan and the U.S., the merger transaction closed on May 15, 2012, pursuant to which TM Sub was merged with and into DFG, the surviving corporation in the merger. As a result, DFG became a subsidiary of TMNF and Tokio Marine became DFG’s ultimate parent.

The outstanding shares of the Company’s preferred stock are owned by DFG, Reliance Standard Life

Insurance Company of Texas (“RSL-Texas”), the Company’s direct parent and Safety National Casualty Corporation (“SNCC”), a subsidiary of DFG. During 2012, the Company paid cash dividends on its cumulative preferred stock issued to SNCC, DFG and RSL-Texas totaling $2,000,000, $1,600,000 and $400,000, respectively. On December 14, 2012, the Company purchased securities with a statement value of $84,384,246 from SNCC for a purchase price of $84,979,851, which includes accrued interest of $595,605.

From time to time, the Company has obtained advances from its parent, RSL-Texas, for purposes of financing mortgage-related investments. To fund these advances, RSL-Texas obtained advances from the Federal Home Loan Bank of Dallas (“FHLB Dallas”). The terms of the Company's advances from RSL-Texas are identical to the terms of RSL-Texas' advances from the FHLB Dallas. At each year ended December 31, 2012 and 2011, the Company had an outstanding borrowing from RSL-Texas, which totaled $55,342,146 including accrued interest of $342,146. During 2012, the Company did not obtain any additional advances from RSL-Texas. The Company paid interest totaling $4,105,750 during 2012 on the advance from RSL-Texas. See Note 11 for additional information regarding the Company’s borrowings.

D. The Company does not have any material receivables or payables with affiliates other than the items

disclosed in Note 10A-C, Note 11B and Schedule D, Part 1. E. There are no guarantees or undertakings for the benefit of any affiliate, which result in a material

contingent exposure to the Company's assets. F. Pursuant to an investment consulting agreement, the Company paid to Rosenkranz Asset Managers,

L.L.C. ("RAM") certain fixed fees associated with the formulation of the business and investment of the Company. These fees amounted to $4,735,036 in 2012. RAM assigned all rights, title and interest in the Company's consulting agreements to Acorn Advisory Capital, L.P. Reliance Standard Life Insurance Company paid fees of $3,144,883 to Acorn Advisory Capital, L.P. All other contracts and cost-sharing arrangements are based on generally accepted accounting principles.

G. All of the outstanding common shares of the Company are owned by RSL-Texas, a life insurance

company domiciled in Texas. The outstanding shares of the Company’s preferred stock are owned by SNCC (250,000 shares), a property and casualty insurance company domiciled in Missouri, the parent company of RSL-Texas, DFG (200,000 shares) and RSL-Texas (50,000 shares).

H-I. Not applicable. J. The Company did not recognize any impairment write down for its investment in FRSLIC during

2012. K-L. Not applicable. 11. DEBT A. The Company entered into a revolving loan agreement with DFG, under which the Company can

obtain loans from time to time in a total amount of up to $100,000,000. The original agreement, entered into on May 3, 2010 was amended on August 3, 2011. At the option of the Company, early repayment may be made without penalty. Interest is payable monthly at a variable money market rate. The loan agreement does not contain any collateral requirements or financial covenants. At December 31, 2012, the Company did not have any outstanding borrowings under this agreement.

B. From time to time, the Company has obtained advances from its parent, RSL-Texas, for purposes of financing mortgage-related investments. To fund these advances, RSL-Texas obtained advances from the FHLB Dallas. The terms of the Company's advances from RSL-Texas are identical to the terms of RSL-Texas' advances from the FHLB Dallas. At December 31, 2012, the Company has one borrowing outstanding from RSL-Texas, which totaled $55,342,146 including accrued interest of $342,146 and is included in the liability for borrowed money caption on the balance sheet. Interest paid during 2012 was $4,105,750. The principal amount of the borrowing outstanding at December 31, 2012 is $55,000,000 and matures in 2020. The interest rate on the borrowing is 7.47%. This borrowing is collateralized by mortgage-related securities owned by the Company. The statement value and market value of the securities held as collateral totaled $58,146,692 and $62,247,047 respectively, at December 31, 2012.

The Company does not have any reverse repurchase agreements outstanding at December 31, 2012.

19.14


12. RETIREMENT PLANS, DEFERRED COMPENSATION, POSTEMPLOYMENT BENEFITS AND

COMPENSATED ABSENCES AND OTHER POSTRETIREMENT BENEFIT PLANS A. Defined Benefit Plans During 2009 and prior, the Company sponsored a qualified non-contributory defined benefit pension

plan covering substantially all employees age 21 or over with more than one year of service with the Company or its affiliates. The Company funds pension costs in accordance with the requirements of ERISA. Effective December 31, 2009, the plan was frozen and will not accept new participants after that date. Existing participants in the plan will not accrue any additional benefits under the plan.

The Company also sponsors a supplemental executive retirement plan. The plan provides certain key

employees with the opportunity for additional postemployment income, which would otherwise have been limited under the pension plan. The plan is a nonqualified tax-deferred retirement plan and is not funded.

In addition to pension benefits, the Company provides certain health care and life insurance benefits

(“postretirement benefits”) for retired employees. The health care plan is non-contributory for current retirees and those employees who attained age 55 with ten years of service by December 31, 1992. Cost sharing features include deductibles and co-payment provisions. Other employees will be eligible for a dollar denominated postretirement health plan. Life insurance benefits are generally set at a fixed percentage of policy face value based on the employee's age. Employees hired after December 31, 1992 are not eligible for any postretirement benefits. The Company funds postretirement benefit payments as claims are incurred or as premium payments are due to the insurer.

The assets, benefit obligations, periodic costs and minimum pension liability adjustment related to these plans are not material to the Company’s financial position or results of operations.

B. Defined Contribution Plans

The Company sponsors a qualified tax-deferred retirement savings plan for employees of the Company or its affiliates, who are at least 21 years old. In addition, the Company sponsors a nonqualified tax-deferred savings plan for certain key employees. The Company has created this plan as an additional tax-deferred savings option for highly compensated employees whose compensation exceeds the limit on the tax-deferred savings plan or whose contributions to the deferred savings plan are limited to ensure the plan's compliance with a nondiscrimination test. During 2009 and prior, the Company made matching contributions of fifty cents for every dollar the employee contributes under the combined plans, up to 4% of the employee’s before-tax contributions. The Company’s contributions to the plans were not material. Effective January 2010, the Company began contributing the equivalent of 3% of eligible compensation for every employee in the plan, in replacement of the matching contribution.

C-F. Not applicable. 13. CAPITAL AND SURPLUS, SHAREHOLDERS’ DIVIDEND RESTRICTIONS AND QUASI-REORGANIZATIONS 1. The Company has 2,000,000 shares of common stock authorized with a $4.50 per share par value of

which 1,334,025 shares are issued and outstanding. The Company also has 600,000 shares of preferred stock authorized with a $100 per share par value of which 500,000 shares are issued and outstanding.

2. Dividends on the Company’s preferred stock are cumulative at a rate of $8 per share, payable semi-

annually. The redemption price is $100 per share.

3. The maximum amount of dividends, which can be paid by Illinois insurance companies to shareholders in any twelve-month period without prior approval of the Director of Insurance, is subject to restrictions related to prior year statutory surplus and net income. Surplus at December 31, 2012 was $561,533,548 and net income was $88,375,784. Therefore, the maximum total of dividends available for payout in 2013 without prior approval is limited to net income for 2012 is $88,375,784. Dividends paid in cash during 2012, totaled $59,000,000.

4. On January 23, 2012, the Company paid an ordinary dividend to RSL-Texas on its common stock of $55,000,000. On January 23, 2012, the Company paid an ordinary dividend to stockholders on its preferred stock totaling $2,000,000. On July 26, 2012, the Company paid an ordinary dividend to stockholders on its preferred stock totaling $2,000,000. On December 31, 2012, the Company declared an ordinary dividend on its common stock of $70,000,000. The payment date of this dividend is January 24, 2013.

5. Within the limitations described in Note 13(3) above, there are no restrictions placed on the portion of

Company profits that may be paid as dividends to shareholders. 6. The Company does not have any material restrictions on unassigned surplus. 19.15

Annual Statement for the year 2012 of the Reliance Standard Life Insurance Company NOTES TO FINANCIAL STATEMENTS 7. Not applicable. 8. The Company does not hold any common stock for special purposes.

9. During 2012, the Company recognized a decrease of $10,064,647 in special surplus funds from its

adoption of SSAP 101. See Note 9 above. 10. The portion of unassigned surplus represented by cumulative net unrealized gains totaled $39,025,512

at December 31, 2012. 11-13. Not applicable.

14. CONTINGENCIES A-B. Not applicable.

C. The Company has no material gain contingencies.

D. During 2012, the company made no payments related to extra-contractual obligations or bad faith claims stemming from lawsuits.

E. In the course of its business, the Company is a party to other litigation and proceedings, primarily

involving its insurance operations. In some cases, these proceedings entail claims against the Company for punitive damages and similar types of relief. The ultimate disposition of such pending litigation and proceedings is not expected to have a material adverse effect on the Company’s results of operations, liquidity or financial condition.

15. LEASES A. (1) The Company leases office space and office equipment under noncancelable operating lease

agreements that expire through December 2017. The office space lease agreements contain escalation clauses considered ordinary for these types of agreements. The amount of the rent escalation is not material. Rental expense for 2012 and 2011 was approximately $14,735,474 and $16,000,424, respectively.

(2) The minimum aggregate rental commitments for operating leases are as follows: Year Ending December 31, (1) 2013 $ 12,561,571 (2) 2014 6,538,275 (3) 2015 6,438,329 (4) 2016 2,385,910 (5) 2017 and thereafter 3,046,724 (6) Total $ 30,970,809

B. The Company does not have any material sales-leaseback transactions.

16. INFORMATION ABOUT FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND FINANCIAL INSTRUMENTS WITH CONCENTRATIONS OF CREDIT RISK

(1) The table below summarizes the face amount of the Company’s financial instruments with off- balance sheet risk.

2012 2011 2012 2011

a. Swaps -$ -$ -$ -$ b. Futures 745,300 1,349,851 208,791 - c. Options 5,196,573 2,563,815 - - d. Total 5,941,873$ 3,913,666$ 208,791$ -$

Assets Liabilities

(2-4) Derivative instruments have off-balance sheet risk. The notional value, market value exposure,

counterparty and other trade terms are available in schedule DB for each individual derivative contract. For discussions on credit risk, market risk, cash requirements and accounting policy, please see Note 8 – Derivative Instruments.

17. SALE, TRANSFER AND SERVICING OF FINANCIAL ASSETS AND EXTINGUISHMENT OF LIABILITIES Not applicable. 18. GAIN OR LOSS TO THE REPORTING ENTITY FROM UNINSURED PLANS AND THE UNINSURED PORTION OF PARTIALLY INSURED PLANS Not applicable. 19.16

Annual Statement for the year 2012 of the Reliance Standard Life Insurance Company NOTES TO FINANCIAL STATEMENTS 19. DIRECT PREMIUM WRITTEN/PRODUCED BY MGA’S AND TPA’S The Company does not have any managing general agents (“MGA’s”). Direct premiums written by third party

administrators ("TPA's") are as follows:

Types of Types of Total DirectFEIN Exclusive Business Authority Premium Written

Name and address of TPA Number Contract Written Granted * Produced ByASRM, LLC509 S. Lenola Road, Suite 231 LimitedMoorestown, NJ 08057 42-1574144 No Benefit U, P, C, CA 45,891,336$

Lawrence E. Smith and AssociatesP.O. Box 411216 Student St. Louis, MO 63141 43-1110928 No accident U, P, C, CA 4,824,669

Bay Bridge Administrators, LLCP.O. Box 161690 Group life Austin, TX 78716 02-0694124 No Short-term U, P, C, CA 2,060,772

disbilityVista Underwriting Partners, LLC1400 N. Providence Rd.Media, PA 19063 26-0453562 No Stop Loss U, P, C, CA 7,620,992

Total Direct Premiums Written 60,397,769$

*C - Claims Payment CA - Claims Adjustment R - Reinsurance Ceding B - Binding Authority P - Premium Collection U - Underwriting

20. FAIR VALUE MEASUREMENTS

A. The methodologies and valuation techniques used by the Company to value those of its assets, which are measured at fair value are described below.

Instruments included in bonds include mortgage-backed and corporate securities, U.S. Treasury and other U.S. government guaranteed securities, securities issued by U.S. government-sponsored enterprises, and obligations of U.S. states, municipalities and political subdivisions. The market liquidity of each security is taken into consideration in the valuation technique used to value such security. For securities where market transactions involving identical or comparable assets generate sufficient relevant information, the Company employs a market approach to valuation. If sufficient information is not generated from market transactions involving identical or comparable assets, the Company uses an income approach to valuation. The majority of the instruments included as bonds are valued utilizing observable inputs; accordingly, they are categorized in either Level 1 or Level 2 of the fair value hierarchy described below. However, in instances where significant inputs utilized are unobservable, the securities are categorized in Level 3 of the fair value hierarchy.

The inputs used in the valuation techniques employed by the Company are provided by nationally recognized pricing services, external investment managers and internal resources. To assess these inputs, the Company’s review process includes, but is not limited to, quantitative analysis including benchmarking, initial and ongoing evaluations of methodologies used by external parties to calculate fair value, and ongoing evaluations of fair value estimates based on the Company’s knowledge and monitoring of market conditions.

The levels are categorized as follows:

Level 1- Valuation is based upon quoted prices for identical assets or liabilities in active markets. Level 1 fair value is not subject to valuation adjustments or block discounts.

Level 2 - Valuation is based upon quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar instruments in markets that are not active. In addition, a company may use various valuation techniques or pricing models that use observable inputs to measure fair value. Level 3 - Valuation is generated from techniques in which one or more of the significant inputs for valuing such assets or liabilities are not observable. These inputs may reflect the Company's best estimates of the various assumptions that market participants would use in valuing the financial assets and financial liabilities.

19.17


Other investments held at fair value primarily consist of common stock, currency forwards and purchased option contracts. For private equity investments, since quoted market prices are not available, the transaction price is used as the best estimate of fair value at inception. When evidence is believed to support a change to the carrying value from the transaction price, adjustments are made to reflect expected exit values. Ongoing reviews by Company management are based on assessments of each underlying investment, and the inputs utilized in these reviews include, among other things, the evaluation of financing and sale transactions with third parties, expected cash flows, material events and market-based information. These investments are included in Level 3 of the fair value hierarchy.

(1) Assets measured at fair value are summarized below:

Level 1 Level 2 Level 3 Total

Assets:Bonds: Industrial and miscellaneous -$ 23,525$ 5,435$ 28,960$ Common Stock: Industrial and miscellaneous 62,247 - 10 62,257 Derivatives: 745 - 4,988 5,733 Other Assets: Separate account assets - - 128,544 128,544

Total Assets at Fair Value 62,992$ 23,525$ 138,977$ 225,494$

(dollars in thousands)

As of December 31, 2012

Level 1 Level 2 Level 3 Total

Assets:Bonds: Industrial and miscellaneous -$ 18,964$ -$ 18,964$ U.S. states, municipalities and political subdivisions - 140 - 140 Common Stock: Industrial and miscellaneous 49,599 - 20 49,619 Derivatives: - - 2,564 2,564 Other Assets: Separate account assets - - 117,365 117,365

Total Assets at Fair Value 49,599$ 19,104$ 119,949$ 188,652$

As of December 31, 2011

(dollars in thousands)

(2),(3) The following table provides reconciliations for Level 3 assets measured at fair value. Transfers into Level 3 are recognized as of the end of the period. There were no significant transfers between Level 1 and Level 2.

19.18

Level 3 Rollforward

Balance at January 1,

2012

Total gains and

(losses) included in

income

Total gains and

(losses) included in

surplus Purchases SalesTransfer to

Level 3

Transfer out of Level 3

Balance at December 31,

2012Industrial & Misc. $ - 3$ 1,597$ 7,965$ (182)$ 1,539$ (5,487)$ 5,435$

Total Bonds - 3 1,597 7,965 (182) 1,539 (5,487) 5,435

Common Stock : Industrial & Misc. 20 (11) 2 - - - - 11

Derivatives 2,564 (1,128) 902 5,020 (2,371) - - 4,987 Assets held in separate account 117,365 13,674 - 39,826 (42,321) - - 128,544

Grand Total $ 119,949 $ 12,538 $ 2,501 $ 52,811 $ (44,874) $ 1,539 $ (5,487) $ 138,977

Transfers (L1 to L2) None

As of December 31, 2012(dollars in thousands)


As of December 31, 2012, the reported fair value of the Company's investments categorized as Level 3 was $138,976,585. Of this, $128,543,893 consisted of assets held in a separate account and are comprised of an investment in a limited liability company whose interests are available for purchase only by separate accounts of the Company, or its affiliates, which fund variable life insurance contracts. Bonds had a balance of $5,434,793 at December 31, 2012. Derivatives, which included purchased options and currency forwards, had a balance of $4,987,793 at December 31, 2012. The remaining $10,106 consisted of common stocks.

B. Not applicable

C. The carrying values and estimated fair values of certain of the Company’s financial instruments not recorded at fair value in the consolidated balance sheets are shown below. Because fair values for all balance sheet items are not required to be disclosed, the aggregate fair value amounts presented below are not reflective of the underlying value of the Company.

NotPracticable

Type of Financial Aggregate Admitted Level Level Level (Carrying Instrument Fair Value Assets 1 2 3 Value)

Assets: Bonds 4,858,892$ 4,496,581$ 88,145$ 4,043,371$ 727,376$ -$ Preferred stock 19,700 10,587 - - 19,700 - Mortgage loans 44,231 44,231 - - 44,231 - Cash and Short-Term Investments 69,180 69,180 60,717 4,755 3,708 - Other invested assets 35,697 32,776 - 35,697 - -

Total assets 5,027,700$ 4,653,355$ 148,862$ 4,083,823$ 795,015$ -$

Liabilities: Policyholder account balances 2,603,636 2,426,289$ -$ -$ 2,603,636$ -$ Advances from RSL-Texas 75,023 55,342 - 75,023 - -

Total liabilities 2,678,659$ 2,481,631$ -$ 75,023$ 2,603,636$ -$

As of December 31, 2012(dollars in thousands)

21. OTHER ITEMS A-B. Not applicable.

C. Assets with a book/adjusted carrying value of $15,423,462 and $14,777,650 at December 31, 2012

and 2011, respectively, were on deposit with government authorities or trustees as required by law. Assets with a book/adjusted carrying value of $57,901,651 and $57,934,182 at December 31, 2012 and 2011, respectively, were pledged as collateral for advances from RSL-Texas. See Note 11.

D-F. Not applicable.

G. The Company generally characterizes its subprime mortgage underlying mortgage loans to borrowers with weighted average Fair Issac & Co., Inc. (FICO) credit scores below 650. Additionally, the weighted-average loan-to-value ratios (LTVs) of these loans are generally above 80.0%. As of December 31, 2012, the Company owned the following:

Actual CostBook/Adjusted Carrying Value Fair Value

OTTI Losses Recognized

Other Investments: Residential mortgage- backed securities 240,717,359$ 245,974,841$ 278,363,279$ (696,702)$ Structured securities 29,287,900 32,180,694 34,402,306 - Total 270,005,259$ 278,155,535$ 312,765,585$ (696,702)$

19.19


H. (1) The Company includes its outstanding balances in respect of its retained asset accounts ("RAA") under the aggregate write-in for liabilities caption on the balance sheet. Effective May 27, 2011, the Company no longer offered a retained asset account to beneficiaries as a life insurance settlement option. The Company does not charge any periodic fees with respect to these accounts; however, nominal charges apply to special account services as follows: stop payment orders ($12), copies of drafts or additional account statements ($2) and returned drafts ($10).

(2) The Company’s retained asset accounts in force, categorized by age, were as follows:

Number Balance Number BalanceUp to and including 12 months - -$ 102 4,673,872$ 13 to 24 months 72 2,778,478 297 12,393,302 25 to 36 months 212 8,493,097 299 10,475,142 37 to 48 months 223 7,018,983 262 8,287,940 49 to 60 months 210 5,807,123 157 3,305,390 over 60 months 902 16,937,002 887 16,461,418 Total 1,619 41,034,683$ 2,004 55,597,064$

As of December 31,2012 2011

(3) A reconciliation of the Company's retained asset accounts for the year ended December 31, 2012 is as follows:

Balance/ Balance/Number Amount Number Amount

RAA, beginning of year 2,004 55,597,064$ - -$ Issued/added during the year N/A N/A - - Investment earnings credited N/A 648,816 - - Fees and other charges assessed N/A (447) - - Transferred to state unclaimed property funds (4) (7,466) - - Closed/withdrawn during the year (381) (15,203,283) - - RAA, end of year 1,619 41,034,683$ - -$

Individual Group

22. EVENTS SUBSEQUENT

There are no known events subsequent to the close of the books or accounts for this statement that may have a material effect on the condition of the Company.

23. REINSURANCE A. Ceded Reinsurance Report Section 1 - General Interrogatories

(1) Are any of the reinsurers, listed in Schedule S as non-affiliated, owned in excess of 10% or controlled, either directly or indirectly, by the company or by any representative, officer, trustee, or director of the company? Yes ( ) No (X) If yes, give full details.

(2) Have any policies issued by the company been reinsured with a company chartered in a

country other than the United States (excluding U.S. Branches of such companies) that is owned in excess of 10% or controlled directly or indirectly by an insured, a beneficiary, a creditor or an insured or any other person primarily engaged in the insurance business?

Yes ( ) No (X) If yes, give full details. Section 2 - Ceded Reinsurance Report - Part A (1) Does the company have any reinsurance agreements in effect under which the reinsurer may

unilaterally cancel any reinsurance for reasons other than for nonpayment of premium or other similar credits? Yes ( ) No (X)

(2) Does the company have any reinsurance agreements in effect such that the amount of losses

paid or accrued through the statement date may result in a payment to the reinsurer of amounts which, in aggregate and allowing for offset of mutual credits from other reinsurance agreements with the same reinsurer, exceed the total direct premium collected under the reinsured policies? Yes () No ( X) If yes, give full details.

19.20


Section 3 - Ceded Reinsurance Report - Part B (1) What is the estimated amount of the aggregate reduction in surplus (for agreements other

than those under which the reinsurer may unilaterally cancel for reasons other than for nonpayment of premium or other similar credits that are reflected in Section 2 above) of termination of all reinsurance agreements, by either party, as of the date of this statement? Where necessary, the Company may consider the current or anticipated experience of the business reinsured in making this estimate. $ 0

(2) Have any new agreements been executed or existing agreements amended, since January 1

of the year of this statement, to include policies or contracts which were in-force or which had existing reserves established by the company as of the effective date of the agreement? Yes (X) No () If yes, what is the amount of reinsurance credits, whether an asset or a reduction of liability, taken for such new agreements or amendments? $ 0

B. Uncollectible Reinsurance Not applicable.

C. Commutation of Reinsurance Reflected in Income and Expense Not applicable. 24. RETROSPECTIVELY RATED CONTRACTS AND CONTRACTS SUBJECT TO REDETERMINATION Not applicable.

25. CHANGE IN INCURRED LOSSES AND LOSS ADJUSTMENT EXPENSES Not applicable. 26. INTERCOMPANY POOLING ARRANGEMENTS Not applicable.

27. STRUCTURED SETTLEMENTS Not applicable. 28. HEALTH CARE RECEIVABLES Not applicable. 29. PARTICIPATING POLICIES

For the year ended December 31, 2012, premiums under ordinary life participating policies were $41,147 or 0.003% of total direct premiums earned. Participating policies are 100% reinsured. Accordingly, the Company does not account for or administer policyholder dividends.

30. PREMIUM DEFICIENCY RESERVES

(1) 1. Liability carried for premium deficiency reserves $ - 2. Date of the most recent evaluation of this liability December 31, 2012 3. Was anticipated investment income utilized in the calculation Yes [X] No [ ]

31. RESERVES FOR LIFE CONTRACTS AND ANNUITY CONTRACTS 1. The Company waives deduction of deferred fractional premiums upon death of insureds and returns

any portion of the final premium beyond the date of death. Surrender values are not promised in excess of legally computed reserves.

2. Extra premiums are charged for substandard lives plus the gross premium for the true age. Mean

reserves are determined by computing the regular mean reserve for the plan at the true age and holding in addition one half of the extra premium charge for the year.

3. As of December 31, 2012, the Company has $29,435,554 of insurance in force for which the gross

premiums are less than the net premiums according to the standard valuation set by Illinois. Reserves to cover the above insurance totaled $712,575 at December 31, 2012 and are reported in Exhibit 5, miscellaneous reserves line 0799993.

4. The Tabular Interest (Page 7, Line 4), the Tabular Less Actual Reserve Released (Page 7, Line 5) and

the Tabular Cost (Page 7, Line 9) have been determined by the formula as described in the instructions for Page 7.

5. Investment earnings on funds not involving life contingencies (Page 15, Line 3) have been calculated

as the balancing item in the reconciliation. It has been checked for reasonableness. 6 . Not applicable

19.21

Annual Statement for the year 2012 of the Reliance Standard Life Insurance Company NOTES TO FINANCIAL STATEMENTS 32. ANALYSIS OF ANNUITY ACTUARIAL RESERVES AND DEPOSIT TYPE LIABILITES BY WITHDRAWAL CHARACTERISTICS

(1) (2) (3) (4) (5)Separate Separate Account Account

General With Non % ofAccount Guarantees Guaranteed Total Total

------------------------------------------------------------------------------------------------ -------------A. Subject to discretionary withdrawal:

(1) with fair value adjustment 1,376,990,455$ -$ -$ 1,376,990,455$ 55% (2) - at book value less current surrender

charges of 5% or more 460,455,343 - - 460,455,343 18% (3) - at fair value - - - - 0% (4) - Total with adjustment or at fair value 1,837,445,798 - - 1,837,445,798 73% (5) - at book value without adjustment

(minimal charge or adjustment) 564,496,398 - - 564,496,398 23%B. Not subject to discretionary withdrawal 108,089,562 - - 108,089,562 4%C. Total (gross: direct + assumed) 2,510,031,758 - - 2,510,031,758 100%D. Reinsurance ceded (19,977,925) - - (19,977,925)

E. Total (net)*(C)-(D) 2,490,053,833$ -$ -$ 2,490,053,833$ *Reconciliation of total annuity actuarial reserves and deposit fund liabilities

F. Life & Accident & Health Annual Statement: 1. Exhibit 5, Annuity Section, Total (net) 2,434,747,490$ 2. Exhibit 5, Supplementary Contracts with Life Contingencies Section, Totals (net) 12,155,878 3. Exhibit 7, Deposit-Type Contracts, Line 14, Column 1 43,150,465 4. Subtotal 2,490,053,833

Separate Accounts Annual Statement: 5. Exhibit 3, Line 0299999, Column 2 - 6. Exhibit 3, Line 0399999, Column 3 - 7. Policyholder dividend and coupon accumulations - 8. Policyholder premiums - 9. Guaranteed interest contracts - 10. Other contract deposit funds - 11. Subtotal -

12. Combined Total 2,490,053,833$

33. PREMIUM AND ANNUITY CONSIDERATIONS DEFERRED AND UNCOLLECTED Deferred and uncollected life insurance premiums and annuity considerations as of December 31, 2012 were

as follows: NET OF TYPE GROSS LOADING Ordinary Renewal $ 382,094 $ 324,780

Group Life 24,831,356 21,903,600 Total $25,213,450 $22,228,380 34. SEPARATE ACCOUNTS A. Separate Account Activity:

(1) In accordance with Section 245.21 of the Illinois Insurance Code, the Company established and maintains a separate account for the purpose of funding variable life insurance contracts issued by the Company. Assets in the separate account are comprised of an investment in a limited liability company whose interests are available for purchase only by separate accounts of the Company, or its affiliates, which fund variable life insurance contracts. Such investment is carried based on the underlying audited GAAP equity of the limited liability company.

(2) As of December 31, 2012 and 2011, the Company’s separate account statement included legally

insulated assets of $128,543,569 and $117,365,336, respectively. The assets legally insulated from the general account as of December 31, 2012 are attributed to the following products/ transactions:

Legally Insulated Separate Account AssetsProduct/Transaction Assets (Not legally Insulated)

Variable Life Insurance 128,543,569$ -$

19.22


(3) The separate account of the Company is not guaranteed by the general account and did not pay any risk charges to the general account during 2012.

(4) The separate account did not engage in any securities lending transactions during 2012.

B. General Nature and Characteristics of Separate Account Business:

NonindexedGuarantees Nonindexed Non-

Less Guarantees guaranteedthan/equal more than Separate

Index to 4% 4% Account Total

(1) Premium, considerations or depositsfor year ended 12/31/2012 -$ -$ -$ 421,045$ 421,045$

Reserves at 12/31/2012 -

(2) For accounts with assets at: - (a) Fair value -$ -$ -$ 128,132,010$ 128,132,010$ (b) Amortized cost - - - - - (c) Total Reserves* - - - 128,132,010 128,132,010

(3) By withdrawal characteristics:(a) Subject to discretionary withdrawal - - - 128,132,010 128,132,010 (b) With FV adjustment - - - - - (c) At book value without FV - adjustment and with current - surrender charge of 5% or more - - - - - (d) At fair value - - - - - (e) At book value without FV - adjustment and with current - surrender charge less than 5% - - - - - (f) Subtotal - - - 128,132,010 128,132,010 (g) Not subject to discretionary - withdrawal - - - - - (h) Total -$ -$ -$ 128,132,010$ 128,132,010$

* Line 2(c) should equal Line 3(h)

(4) Reserve for Asset Default Riskin Lieu of AVR -$ -$ -$ -$ -$

C. Reconciliation of Net Transfers To (From) Separate Accounts (1) Transfers as reported in the Summary of Operations of the Separate Accounts Statement: (a) Transfers to Separate Accounts (Page 4, Line 1.4) $ (425,071) (b) Transfers to Separate Accounts (Page 4, Line 10) - (c) Net transfers to Separate Accounts (a) - (b) (425,071) (2) Reconciling Adjustments: (a) Investment loss allocated to contributed surplus - (b) Premiums paid to reinsurer 421,045 (3) Transfers as Reported in the Summary of Operations of the Life, Accident & Health Annual Statement (1c) + (2) (Page 4, Line 26) $ (4,026) 35. LOSS/CLAIM ADJUSTMENT EXPENSES

A. The balance in the liability for unpaid accident and health claims adjustment expenses as of December

31, 2012 and 2011 was $30,773,492 and $29,317,101 respectively. B. The Company incurred $11,326,343 of claim adjustment expenses in the current year, of which

$4,835,142 was attributable to insured or covered events of the current year. The Company did not increase or decrease the provision for insured events of prior years.

C. The Company paid $9,869,952 of claim adjustment expenses in the current years, of which $4,213,418

was attributable to insured or covered events of the current year and $5,656,534 was attributable to insured or covered events of the prior years.

D. The Company did not consider anticipated subrogation in its determination of the liability for unpaid

claims and claim adjustment expenses.

19.23


22

FIVE-YEAR HISTORICAL DATA Show amounts in whole dollars only, no cents; show percentages to one decimal place, i.e., 17.6.

Show amounts of life insurance in this exhibit in thousands (omit $000) 1 2 3 4 5

2012 2011 2010 2009 2008

Life Insurance in Force (Exhibit of Life Insurance)

1. Ordinary - whole life and endowment (Line 34, Col. 4)....................................................... ...............293,063 ...............305,843 ...............324,738 ...............345,709 ...............363,682

2. Ordinary - term (Line 21, Col. 4, less Line 34, Col. 4).......................................................... ...............171,931 ...............195,313 ...............214,706 ...............235,760 ...............256,558

3. Credit life (Line 21, Col. 6).................................................................................................... ............................. ............................. ............................. ............................. .............................

4. Group, excluding FEGLI/SGLI (Line 21, Col. 9 less Lines 43 & 44, Col. 4)......................... ........197,492,581 ........173,754,233 ........152,827,439 ........143,373,364 ........153,082,178

5. Industrial (Line 21, Col. 2)................................................................................................... ...................5,369 ...................5,608 ...................5,640 ...................4,731 ...................4,908

6. FEGLI/SGLI (Lines 43 & 44, Col. 4).................................................................................... ............................. ............................. ............................. ............................. .............................

7. Total (Line 21, Col. 10)........................................................................................................ ........197,962,944 ........174,260,997 ........153,372,523 ........143,959,564 ........153,707,326

New Business Issued (Exhibit of Life Insurance)

8. Ordinary - whole life and endowment (Line 34, Col. 2)........................................................ ...................4,661 ...................5,967 ...................3,956 ...................5,966 ...................4,894

9. Ordinary - term (Line 2, Col. 4, less Line 34, Col. 2)............................................................ ............................. ............................. ............................. ............................. .............................

10. Credit life (Line 2, Col. 6)...................................................................................................... ............................. ............................. ............................. ............................. .............................

11. Group (Line 2, Col. 9)........................................................................................................... ..........32,568,505 ..........45,573,655 ..........36,153,449 ..........28,133,017 ..........26,585,833

12. Industrial (Line 2, Col. 2)...................................................................................................... ............................. ............................. ............................. ............................. .............................

13. Total (Line 2, Col. 10)........................................................................................................... ..........32,573,166 ..........45,579,622 ..........36,157,405 ..........28,138,983 ..........26,590,727

Premium Income - Lines of Business (Exhibit 1-Part 1)

14. Industrial life (Line 20.4, Col. 2)............................................................................................ ............................. ............................. ............................. ............................. .............................

15.1 Ordinary life insurance (Line 20.4, Col.. 3)........................................................................... ............1,040,783 ...............424,759 ............1,605,761 ...............647,058 ...............938,927

15.2 Ordinary individual annuities (Line 20.4, Col. 4)................................................................... ........406,068,573 ........396,542,177 ........284,008,992 ........187,390,709 ........147,646,416

16. Credit life (group and individual) (Line 20.4, Col. 5)............................................................. ............................. ............................. ............................. ............................. .............................

17.1 Group life insurance (Line 20.4, Col. 6)................................................................................ ........185,977,058 ........177,302,057 ........169,844,978 ........355,670,261 ........380,688,868

17.2 Group annuities (Line 20.4, Col. 7)...................................................................................... ........112,403,296 ........116,641,259 ..........98,510,938 ..........65,477,573 ..........99,541,437

18.1 A&H - group (Line 20.4, Col. 8)............................................................................................ ........680,967,166 ........629,805,274 ........593,856,482 ........603,526,879 ........604,754,520

18.2 A&H - credit (group and individual) (Line 20.4, Col. 9)......................................................... ............................. ............................. ............................. ............................. .............................

18.3 A&H - other (Line 20.4, Col. 10)........................................................................................... ...............124,586 ...............146,192 ...............173,128 ...............157,832 ...............169,461

19. Aggregate of all other lines of business (Line 20.4, Col. 11)................................................ ............................. ............................. ............................. ............................. .............................

20. Total..................................................................................................................................... .....1,386,581,462 .....1,320,861,718 .....1,148,000,279 .....1,212,870,312 .....1,233,739,629

Balance Sheet (Pages 2 and 3)

21. Total admitted assets excluding Separate Accounts business (Page 2, Line 26, Col. 3).... .....5,058,398,579 .....4,500,653,093 .....4,070,145,411 .....3,707,820,845 .....3,411,462,823

22. Total liabilities excluding Separate Accounts business (Page 3, Line 26)........................... .....4,496,865,031 .....3,978,339,057 .....3,539,582,486 .....3,166,811,395 .....2,906,707,410

23. Aggregate life reserves (Page 3, Line 1).............................................................................. .....2,586,317,555 .....2,176,970,524 .....1,793,586,732 .....1,515,995,491 .....1,358,998,034

24. Aggregate A&H reserves (Page 3, Line 2)........................................................................... ........904,085,255 ........842,392,553 ........786,930,738 ........744,767,326 ........698,110,255

25. Deposit-type contract funds (Page 3, Line 3)....................................................................... ..........43,150,465 ..........40,614,542 ........103,340,213 ........103,694,102 ........131,210,341

26. Asset valuation reserve (Page 3, Line 24.01)...................................................................... ..........37,071,418 ..........25,118,721 ..........21,671,589 ..........19,420,012 ..........21,604,978

27. Capital (Page 3, Lines 29 & 30)........................................................................................... ..........56,003,113 ..........56,003,113 ..........56,003,113 ..........56,003,113 ..........56,003,113

28. Surplus (Page 3, Line 37)..................................................................................................... ........505,530,435 ........466,310,833 ........474,559,722 ........485,006,248 ........455,714,716

Cash Flow (Page 5)

29. Net Cash from operations (Line 11)..................................................................................... ........550,459,014 ........523,791,973 ........390,217,690 ........310,750,945 ........447,834,904

Risk-Based Capital Analysis

30. Total adjusted capital........................................................................................................... ........599,133,428 ........547,729,327 ........552,412,333 ........560,429,373 ........533,322,807

31. Authorized control level risk-based capital........................................................................... ..........86,874,129 ..........75,200,501 ..........80,228,359 ..........84,706,112 ..........98,929,306

Percentage Distribution of Cash, Cash Equivalents and Invested Assets (Page 2, Col. 3) (Line No. /Page 2, Line 12, Col. 3) x 100.0

32. Bonds (Line 1)...................................................................................................................... .....................91.5 .....................87.8 .....................89.0 .....................83.7 .....................81.7

33. Stocks (Lines 2.1 and 2.2).................................................................................................... .......................2.8 .......................2.8 .......................1.9 .......................3.0 .......................3.3

34. Mortgage loans on real estate (Lines 3.1 and 3.2)............................................................... .......................0.9 .......................1.2 .......................0.6 .......................1.9 .......................3.6

35. Real estate (Line 4.1, 4.2 and 4.3)....................................................................................... ............................. .......................0.0 .......................0.1 .......................0.1 .......................0.4

36. Cash, cash equivalents and short-term investments (Line 5).............................................. .......................1.4 .......................4.0 .......................4.2 .......................7.2 .......................8.7

37. Contract loans (Line 6)......................................................................................................... .......................0.0 .......................0.0 .......................0.0 .......................0.0 .......................0.0

38. Derivatives (Line 7).............................................................................................................. .......................0.1 .......................0.1 .......................0.1 ..........XXX............ ..........XXX............

39. Other invested assets (Line 8)............................................................................................. .......................3.2 .......................3.8 .......................3.8 .......................3.5 .......................2.2

40. Receivables for securities (Line 9)....................................................................................... .......................0.0 .......................0.3 .......................0.3 .......................0.5 .......................0.1

41. Securities lending reinvested collateral assets (Line 10)..................................................... ............................. ............................. ............................. ..........XXX............ ..........XXX............

42. Aggregate write-ins for invested assets (Line 11)................................................................ ............................. ............................. ............................. .......................0.0 .............................

43. Cash, cash equivalents and invested assets (Line 12)........................................................ ...................100.0 ...................100.0 ...................100.0 ...................100.0 ...................100.0


23

FIVE-YEAR HISTORICAL DATA (continued)

1 2 3 4 52012 2011 2010 2009 2008

Investments in Parent, Subsidiaries and Affiliates

44. Affiliated bonds (Sch. D Summary, Line 12 Col. 1).............................................................. ............................. ..........24,323,676 ..........24,323,676 ..........19,323,677 ..........19,323,677

45. Affiliated preferred stocks (Sch. D Summary, Line 18 Col. 1).............................................. ............................. ............................. ............................. ............................. .............................

46. Affiliated common stocks (Sch. D Summary, Line 24 Col. 1)............................................... ..........63,600,610 ..........60,472,258 ..........60,616,028 ..........84,778,401 ..........71,154,667

47. Affiliated short-term investments (subtotal included in Sch. DA, Verif. Col. 5, Line 10)....... ............................. ............................. ............................. ............................. .............................

48. Affiliated mortgage loans on real estate .............................................................................. ............................. ............................. ............................. ............................. .............................

49. All other affiliated.................................................................................................................. ..........11,229,503 ..........12,009,588 ..........11,842,284 ..........13,523,335 ..........18,010,814

50. Total of above Lines 44 to 49............................................................................................... ..........74,830,113 ..........96,805,522 ..........96,781,988 ........117,625,413 ........108,489,158

51. Total investment in parent included in Lines 44 to 49 above............................................... ............................. ............................. ............................. ............................. .............................

Total Nonadmitted and Admitted Assets

52. Total nonadmitted assets (Page 2, Line 28, Col. 2)............................................................. ..........61,460,033 ..........75,612,736 ..........71,608,001 ..........88,564,004 ..........76,618,762

53. Total admitted assets (Page 2, Line 28, Col. 3)................................................................... .....5,186,942,148 .....4,618,018,426 .....4,193,818,934 .....3,821,310,131 .....3,508,998,178

Investment Data

54. Net investment income (Exhibit of Net Investment Income)................................................. ........253,816,376 ........222,359,168 ........209,540,709 ........190,405,199 ........175,296,581

55. Realized capital gains (losses) (Page 4, Line 34, Column 1)............................................... .........(20,493,928) .........(11,755,417) .........(31,397,391) .......(134,298,319) .............................

56. Unrealized capital gains (losses) (Page 4, Line 38, Column 1)............................................ ..........17,653,108 ............5,966,603 ..........12,663,463 ..........16,219,306 .............................

57. Total of above Lines 54, 55 and 56...................................................................................... ........250,975,556 ........216,570,354 ........190,806,781 ..........72,326,186 ........175,296,581

Benefits and Reserve Increase (Page 6)

58. Total contract benefits - life (Lines 10, 11, 12, 13, 14 and 15 Col. 1 less Lines 10, 11, 12, 13, 14 and 15, Cols. 9, 10 & 11)............................................. ........226,013,676 ........232,191,611 ........191,870,218 ........392,100,502 ........408,056,795

59. Total contract benefits - A&H (Lines 13 & 14, Cols. 9, 10 & 11).......................................... ........494,061,477 ........447,458,588 ........430,778,900 ........392,428,149 ........381,671,825

60. Increase in life reserves - other than group and annuities (Line 19, Cols. 2 & 3)............................................................................................................ ..............(330,680) ..............(299,176) ...............164,393 ...............460,475 ...............296,898

61. Increase in A&H reserves (Line 19, Cols. 9, 10 & 11).......................................................... ..........61,692,702 ..........55,461,815 ..........42,163,412 ..........46,657,071 ..........73,720,924

62. Dividends to policyholders (Line 30, Col 1).......................................................................... ............................. ............................. ............................. ............................. .............................

Operating Percentages

63. Insurance expense percent (Page 6, Col. 1, Lines 21, 22, & 23 less Line 6)/(Page 6 Col. 1, Line 1 plus Exhibit 7, Col. 2, Line 2) x 100.00......................................... .....................20.5 .....................20.5 .....................23.1 .....................20.4 .....................19.3

64. Lapse percent (ordinary only) [(Exhibit of Life Insurance, Col. 4, Lines 14 & 15) / 1/2 (Exhibit of Life Insurance, Col. 4, Lines 1 & 21)] x 100.00........................................... .......................6.5 .......................5.8 .......................6.4 .......................6.2 .......................5.6

65. A&H loss percent (Schedule H, Part 1, Lines 5 & 6, Col. 2)................................................. .....................82.1 .....................80.3 .....................80.0 .....................73.2 .....................75.6

66. A&H cost containment percent (Schedule H, Part 1, Line 4, Col. 2).................................... .......................0.5 .......................0.4 .......................0.4 .......................0.5 .......................0.4

67. A&H expense percent excluding cost containment expenses(Schedule H, Part 1, Line 10, Col. 2).................................................................................... .....................27.4 .....................27.2 .....................27.2 .....................27.1 .....................26.2

A&H Claim Reserve Adequacy

68. Incurred losses on prior years' claims - group health (Sch. H, Part 3, Line 3.1, Col. 2)....... .....1,292,796,575 .....1,206,997,600 .....1,127,405,365 .....1,022,316,680 ........886,849,061

69. Prior years' claim liability and reserve - group health (Sch. H, Part 3, Line 3.2, Col. 2)....... .....1,328,630,637 .....1,241,256,767 .....1,174,038,075 .....1,088,120,542 ........952,266,184

70. Incurred losses on prior years' claims - health other than group (Sch. H, Part 3, Line 3.1, Col. 1 less Col. 2).................................................................................................. ...............182,120 ...............138,204 ...............172,006 ...............131,665 ...............233,054

71. Prior years' claim liability and reserve - health other than group (Sch. H, Part 3, Line 3.2, Col. 1 less Col. 2).................................................................................................. ............................. ............................. ............................. ............................. .............................

Net Gains From Operations After Federal Income Taxes by Lines of Business (Page 6, Line 33)

72. Industrial life (Col. 2)............................................................................................................ ............................. ............................. ............................. ............................. .............................

73. Ordinary - life (Col. 3)........................................................................................................... ..............(230,137) ..............(772,650) ................(37,241) ..............(580,632) ...............299,721

74. Ordinary - individual annuities (Col. 4)................................................................................. ..........28,810,630 ..........20,560,021 ..........16,362,971 ..........13,232,788 ..........15,784,039

75. Ordinary - supplementary contracts (Col. 5)........................................................................ ............1,029,450 ...............234,155 ..............(527,092) ...........(1,762,472) ...........(1,834,719)

76. Credit life (Col. 6)................................................................................................................. ............................. ............................. ............................. ............................. .............................

77. Group life (Col. 7)................................................................................................................. ..........41,610,022 ..........30,560,737 ..........36,855,413 ..........29,014,216 ..........23,276,817

78. Group annuities (Col. 8)....................................................................................................... ..........10,925,286 ............8,390,614 ............4,205,993 ............5,326,666 ............3,815,753

79. A&H - group (Col. 9)............................................................................................................. ..........26,767,881 ..........30,208,862 ..........37,910,003 ..........63,163,537 ..........36,326,245

80. A&H - credit (Col. 10)........................................................................................................... ............................. ............................. ............................. ............................. .............................

81. A&H - other (Col. 11)............................................................................................................ ................(43,420) ...................5,586 ......................850 .................15,295 ................(41,260)

82. Aggregate of all other lines of business (Col. 12)................................................................. ............................. ..............(537,466) ...............900,734 ...........(3,172,184) ...............616,437

83. Total (Col. 1)......................................................................................................................... ........108,869,712 ..........88,649,859 ..........95,671,632 ........105,237,214 ..........78,243,033NOTE: If a party to a merger, have the two most recent years of this exhibit been restated due to a merger in compliance with the disclosure

requirements of SSAP No. 3, Accounting Changes and Correction of Errors? Yes [ ] No [ ]If no, please explain:


37

SCHEDULE H - ACCIDENT AND HEALTH EXHIBIT Group Credit Accident and Other Individual Contracts

Accident and Health (Group and Collectively Guaranteed Non-Renewable for Other AccidentTotal Health Individual) Renewable Non-Cancelable Renewable Stated Reasons Only Only All Other

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %

PART 1 - ANALYSIS OF UNDERWRITING OPERATIONS 1. Premiums written................................................................... ....681,115,513 ......XXX..... ....680,990,927 ....XXX.... ......................... ....XXX.... ......................... ....XXX.... ......................... ....XXX.... ......................... ......XXX..... ......................... ....XXX.... ...........124,586 ....XXX.... ......................... ....XXX..

2. Premiums earned.................................................................. ....680,764,015 ......XXX..... ....680,639,429 ....XXX.... ......................... ....XXX.... ......................... ....XXX.... ......................... ....XXX.... ......................... ......XXX..... ......................... ....XXX.... ...........124,586 ....XXX.... ......................... ....XXX..

3. Incurred claims...................................................................... ....555,426,442 ..........81.6 ....555,244,322 .......81.6 ......................... .........0.0 ......................... .........0.0 ......................... .........0.0 ......................... ............0.0 ......................... .........0.0 ...........182,120 .....146.2 ......................... .......0.0

4. Cost containment expenses.................................................. ........3,330,331 ............0.5 ........3,330,331 .........0.5 ......................... .........0.0 ......................... .........0.0 ......................... .........0.0 ......................... ............0.0 ......................... .........0.0 ......................... .........0.0 ......................... .......0.0

5. Incurred claims and cost containment expenses (Lines 3 and 4)....................................................................... ....558,756,773 ..........82.1 ....558,574,653 .......82.1 ......................0 .........0.0 ......................0 .........0.0 ......................0 .........0.0 ......................0 ............0.0 ......................0 .........0.0 ...........182,120 .....146.2 ......................0 .......0.0

6 Increase in contract reserves................................................ ......................0 ............0.0 ......................... .........0.0 ......................... .........0.0 ......................... .........0.0 ......................... .........0.0 ......................... ............0.0 ......................... .........0.0 ......................... .........0.0 ......................... .......0.0

7 Commissions (a).................................................................... ......67,309,548 ............9.9 ......67,309,503 .........9.9 ......................... .........0.0 ......................... .........0.0 ......................... .........0.0 ......................... ............0.0 ......................... .........0.0 ....................45 .........0.0 ......................... .......0.0

8 Other general insurance expenses........................................ ....101,253,494 ..........14.9 ....101,253,494 .......14.9 ......................... .........0.0 ......................... .........0.0 ......................... .........0.0 ......................... ............0.0 ......................... .........0.0 ......................... .........0.0 ......................... .......0.0

9 Taxes, licenses and fees....................................................... ......18,005,695 ............2.6 ......18,005,695 .........2.6 ......................... .........0.0 ......................... .........0.0 ......................... .........0.0 ......................... ............0.0 ......................... .........0.0 ......................... .........0.0 ......................... .......0.0

10 Total other expenses incurred............................................... ....186,568,737 ..........27.4 ....186,568,692 .......27.4 ......................0 .........0.0 ......................0 .........0.0 ......................0 .........0.0 ......................0 ............0.0 ......................0 .........0.0 ....................45 .........0.0 ......................0 .......0.0

11. Aggregate write-ins for deductions........................................ ........1,253,861 ............0.2 ........1,253,861 .........0.2 ......................0 .........0.0 ......................0 .........0.0 ......................0 .........0.0 ......................0 ............0.0 ......................0 .........0.0 ......................0 .........0.0 ......................0 .......0.0

12. Gain from underwriting before dividends or refunds.............. .....(65,815,356) ..........(9.7) .....(65,757,777) ........(9.7) ......................0 .........0.0 ......................0 .........0.0 ......................0 .........0.0 ......................0 ............0.0 ......................0 .........0.0 ............(57,579) ......(46.2) ......................0 .......0.0

13. Dividends or refunds.............................................................. ......................0 ............0.0 ......................... .........0.0 ......................... .........0.0 ......................... .........0.0 ......................... .........0.0 ......................... ............0.0 ......................... .........0.0 ......................... .........0.0 ......................... .......0.0

14. Gain from underwriting after dividends or refunds................. .....(65,815,356) ..........(9.7) .....(65,757,777) ........(9.7) ......................0 .........0.0 ......................0 .........0.0 ......................0 .........0.0 ......................0 ............0.0 ......................0 .........0.0 ............(57,579) ......(46.2) ......................0 .......0.0

DETAILS OF WRITE-INS 1101. Increase in loading................................................................ ........1,195,637 ............0.2 ........1,195,637 .........0.2 ......................... .........0.0 ......................... .........0.0 ......................... .........0.0 ......................... ............0.0 ......................... .........0.0 ......................... .........0.0 ......................... .......0.0

1102. Interest on policy funds.......................................................... .............58,224 ............0.0 .............58,224 .........0.0 ......................... .........0.0 ......................... .........0.0 ......................... .........0.0 ......................... ............0.0 ......................... .........0.0 ......................... .........0.0 ......................... .......0.0

1103. ............................................................................................... ......................... ............0.0 ......................... .........0.0 ......................... .........0.0 ......................... .........0.0 ......................... .........0.0 ......................... ............0.0 ......................... .........0.0 ......................... .........0.0 ......................... .......0.0

1198. Summary of remaining write-ins for Line 11 from overflow page................................................................ ......................0 ............0.0 ......................0 .........0.0 ......................0 .........0.0 ......................0 .........0.0 ......................0 .........0.0 ......................0 ............0.0 ......................0 .........0.0 ......................0 .........0.0 ......................0 .......0.0

1199. Total (Lines 1101 thru 1103 plus 1198) (Line 11 above)....... ........1,253,861 ............0.2 ........1,253,861 .........0.2 ......................0 .........0.0 ......................0 .........0.0 ......................0 .........0.0 ......................0 ............0.0 ......................0 .........0.0 ......................0 .........0.0 ......................0 .......0.0

(a) Includes $..........0 reported as 'Contract, membership and other fees retained by agents.'


38

SCHEDULE H - ACCIDENT AND HEALTH EXHIBIT (continued) 1 2 3 4 Other Individual Contracts

Group Credit Accident and 5 6 7 8 9Accident and Health (Group and Collectively Guaranteed Non-Renewable for Other Accident

Total Health Individual) Renewable Non-Cancelable Renewable Stated Reasons Only Only All OtherPART 2 - RESERVES AND LIABILITIES

A. Premium Reserves: 1. Unearned premiums.................................................................................................... ....................7,161,186 ....................7,161,186 .................................... .................................... .................................... .................................... .................................... .................................... ..................................2. Advance premiums..................................................................................................... .......................163,032 .......................162,975 .................................... .................................... .................................... .................................... .................................... ...............................57 ..................................3. Reserve for rate credits............................................................................................... .................................0 .................................... .................................... .................................... .................................... .................................... .................................... .................................... ..................................4. Total premium reserves, current year.......................................................................... ....................7,324,218 ....................7,324,161 .................................0 .................................0 .................................0 .................................0 .................................0 ...............................57 ...............................05. Total premium reserves, prior year.............................................................................. ....................6,972,720 ....................6,972,663 .................................... .................................... .................................... .................................... .................................... ...............................57 ..................................6. Increase in total premium reserves............................................................................. .......................351,498 .......................351,498 .................................0 .................................0 .................................0 .................................0 .................................0 .................................0 ...............................0

B. Contract Reserves: 1. Additional reserves (a)................................................................................................ .................................0 .................................... .................................... .................................... .................................... .................................... .................................... .................................... ..................................2. Reserve for future contingent benefits......................................................................... .................................0 .................................... .................................... .................................... .................................... .................................... .................................... .................................... ..................................3. Total contract reserves, current year........................................................................... .................................0 .................................0 .................................0 .................................0 .................................0 .................................0 .................................0 .................................0 ...............................04. Total contract reserves, prior year............................................................................... .................................0 .................................... .................................... .................................... .................................... .................................... .................................... .................................... ..................................5. Increase in contract reserves...................................................................................... .................................0 .................................0 .................................0 .................................0 .................................0 .................................0 .................................0 .................................0 ...............................0

C. Claim Reserves and Liabilities: 1. Total current year........................................................................................................ .............1,432,847,556 .............1,432,847,556 .................................... .................................... .................................... .................................... .................................... .................................... ..................................2. Total prior year............................................................................................................ .............1,328,630,637 .............1,328,630,637 .................................... .................................... .................................... .................................... .................................... .................................... ..................................3. Increase...................................................................................................................... ................104,216,919 ................104,216,919 .................................0 .................................0 .................................0 .................................0 .................................0 .................................0 ...............................0

PART 3 - TEST OF PRIOR YEAR'S CLAIM RESERVES AND LIABILITIES1. Claims Paid During the Year:

1.1 On claims incurred prior to current year................................................................. ................282,126,783 ................281,944,663 .................................... .................................... .................................... .................................... .................................... .......................182,120 ..................................1.2 On claims incurred during current year.................................................................. ................169,082,740 ................169,082,740 .................................... .................................... .................................... .................................... .................................... .................................... ..................................

2. Claim Reserves and Liabilities, December 31, Current Year: 2.1 On claims incurred prior to current year................................................................. .............1,010,851,912 .............1,010,851,912 .................................... .................................... .................................... .................................... .................................... .................................... ..................................2.2 On claims incurred during current year.................................................................. ................421,995,644 ................421,995,644 .................................... .................................... .................................... .................................... .................................... .................................... ..................................

3. Test: 3.1 Lines 1.1 and 2.1................................................................................................... .............1,292,978,695 .............1,292,796,575 .................................0 .................................0 .................................0 .................................0 .................................0 .......................182,120 ...............................03.2 Claim reserves and liabilities, December 31, prior year......................................... .............1,328,630,637 .............1,328,630,637 .................................... .................................... .................................... .................................... .................................... .................................... ..................................3.3 Line 3.1 minus Line 3.2......................................................................................... .................(35,651,942) .................(35,834,062) .................................0 .................................0 .................................0 .................................0 .................................0 .......................182,120 ...............................0

PART 4 - REINSURANCEA. Reinsurance Assumed:

1. Premiums written.................................................................................................... ..................60,729,968 ..................60,729,968 .................................... .................................... .................................... .................................... .................................... .................................... ..................................2. Premiums earned.................................................................................................... ..................60,729,968 ..................60,729,968 .................................... .................................... .................................... .................................... .................................... .................................... ..................................3. Incurred claims........................................................................................................ ..................59,573,154 ..................59,573,154 .................................... .................................... .................................... .................................... .................................... .................................... ..................................4. Commissions.......................................................................................................... .......................418,321 .......................418,321 .................................... .................................... .................................... .................................... .................................... .................................... ..................................

B. Reinsurance Ceded: 1. Premiums written.................................................................................................... ..................69,579,801 ..................69,579,801 .................................... .................................... .................................... .................................... .................................... .................................... ..................................2. Premiums earned.................................................................................................... ..................69,511,263 ..................69,511,263 .................................... .................................... .................................... .................................... .................................... .................................... ..................................3. Incurred claims........................................................................................................ ..................49,514,407 ..................49,514,407 .................................... .................................... .................................... .................................... .................................... .................................... ..................................4. Commissions.......................................................................................................... ....................3,722,934 ....................3,722,934 .................................... .................................... .................................... .................................... .................................... .................................... ..................................

(a) Includes $..........0 premium deficiency reserve.


39

SCHEDULE H - PART 5 - HEALTH CLAIMS1 2 3 4

Medical Dental Other Total

A. Direct:

1. Incurred claims........................................................................ ......................................... .......................53,806,954 .....................491,560,739 .....................545,367,693

2. Beginning claim reserves and liabilities.................................... ......................................... .........................4,192,598 ..................1,229,018,608 ..................1,233,211,206

3. Ending claim reserves and liabilities........................................ ......................................... .........................4,519,787 ..................1,301,610,193 ..................1,306,129,980

4. Claims paid.............................................................................. ......................................0 .......................53,479,765 .....................418,969,154 .....................472,448,919

B. Assumed Reinsurance:

5. Incurred claims........................................................................ ......................................... ......................................... .......................59,573,154 .......................59,573,154

6. Beginning claim reserves and liabilities.................................... ......................................... ......................................... .....................196,982,631 .....................196,982,631

7. Ending claim reserves and liabilities........................................ ......................................... ......................................... .....................220,225,261 .....................220,225,261

8. Claims paid.............................................................................. ......................................0 ......................................0 .......................36,330,524 .......................36,330,524

C. Ceded Reinsurance:

9. Incurred claims........................................................................ ......................................... .......................39,198,651 .......................10,315,756 .......................49,514,407

10. Beginning claim reserves and liabilities.................................... ......................................... .........................3,029,268 .....................101,183,636 .....................104,212,904

11. Ending claim reserves and liabilities........................................ ......................................... .........................3,295,168 .......................92,947,674 .......................96,242,842

12. Claims paid.............................................................................. ......................................0 .......................38,932,751 .......................18,551,718 .......................57,484,469

D. Net:

13. Incurred claims........................................................................ ......................................0 .......................14,608,303 .....................540,818,137 .....................555,426,440

14. Beginning claim reserves and liabilities.................................... ......................................0 .........................1,163,330 ..................1,324,817,603 ..................1,325,980,933

15. Ending claim reserves and liabilities........................................ ......................................0 .........................1,224,619 ..................1,428,887,780 ..................1,430,112,399

16. Claims paid.............................................................................. ......................................0 .......................14,547,014 .....................436,747,960 .....................451,294,974

E. Net Incurred Claims and Cost Containment Expenses:

17. Incurred claims and cost containment expenses...................... ......................................... .......................14,608,303 .....................544,148,468 .....................558,756,771

18. Beginning reserves and liabilities............................................. ......................................... .........................1,163,330 ..................1,324,817,603 ..................1,325,980,933

19. Ending reserves and liabilities................................................. ......................................... .........................1,224,619 ..................1,428,899,780 ..................1,430,124,399

20. Paid claims and cost containment expenses............................ ......................................0 .......................14,547,014 .....................440,066,291 .....................454,613,305


50

SCHEDULE T - PREMIUMS AND ANNUITY CONSIDERATIONS Allocated by States and Territories

1 Direct Business OnlyLife Contracts 4 5 6 7

2 3 Accident and HealthInsurance Premiums, Total

Active Life Insurance Annuity Including Policy, Mem- Other Columns Deposit-TypeStates, Etc. Status Premiums Considerations bership and Other Fees Considerations 2 through 5 Contracts

1. Alabama................................................................................AL ....L....... ........12,010,157 .............948,248 ...................13,098,425 ....................... ..........26,056,830 .......................2. Alaska...................................................................................AK ....L....... ..........1,761,637 .............321,114 .....................2,152,386 ....................... ............4,235,137 .......................3. Arizona.................................................................................AZ ....L....... ..........5,194,509 ........17,579,583 .....................5,605,160 ....................... ..........28,379,252 .......................4. Arkansas..............................................................................AR ....L....... ..........2,561,729 ..........9,661,327 .....................4,934,350 ....................... ..........17,157,406 .......................5. California..............................................................................CA ....L....... ........43,213,454 ........50,656,430 ...................77,573,785 ....................... ........171,443,669 .......................6. Colorado..............................................................................CO ....L....... ..........3,243,071 ..........9,183,973 .....................9,137,006 ....................... ..........21,564,050 .......................7. Connecticut..........................................................................CT ....L....... ..........7,915,870 ..........7,794,663 .....................9,195,479 ....................... ..........24,906,012 .......................8. Delaware..............................................................................DE ....L....... ..........4,593,339 ..........1,503,670 .....................3,681,492 ....................... ............9,778,501 .......................9. District of Columbia..............................................................DC ....L....... ..........2,938,110 ...............11,307 .....................4,893,040 ....................... ............7,842,457 .......................

10. Florida...................................................................................FL ....L....... ........27,758,709 ........29,022,149 ...................51,188,095 ....................... ........107,968,953 .......................11. Georgia................................................................................GA ....L....... ........16,643,141 ..........7,060,795 ...................29,142,338 ....................... ..........52,846,274 .......................12. Hawaii....................................................................................HI ....L....... ...............73,274 .............986,738 ........................631,544 ....................... ............1,691,556 .......................13. Idaho......................................................................................ID ....L....... .............214,743 .............959,391 .....................2,597,526 ....................... ............3,771,660 .......................14. Illinois.....................................................................................IL ....L....... ........29,871,480 ........13,370,138 ...................25,379,454 ....................... ..........68,621,072 .......................15. Indiana...................................................................................IN ....L....... ..........5,462,065 ........14,150,661 ...................11,510,265 ....................... ..........31,122,991 .......................16. Iowa.......................................................................................IA ....L....... ..........4,092,186 ........10,525,680 .....................7,704,751 ....................... ..........22,322,617 .......................17. Kansas.................................................................................KS ....L....... ..........8,627,576 ..........1,872,556 .....................9,811,220 ....................... ..........20,311,352 .......................18. Kentucky...............................................................................KY ....L....... ..........6,082,214 ..........2,361,825 ...................10,363,524 ....................... ..........18,807,563 .......................19. Louisiana..............................................................................LA ....L....... ..........9,952,122 ..........2,377,073 ...................17,332,563 ....................... ..........29,661,758 .......................20. Maine...................................................................................ME ....L....... .............333,947 ..........2,537,122 .....................1,247,517 ....................... ............4,118,586 .......................21. Maryland..............................................................................MD ....L....... ........10,078,717 ..........2,191,064 ...................19,792,000 ....................... ..........32,061,781 .......................22. Massachusetts.....................................................................MA ....L....... ........12,039,020 ........30,028,141 ...................24,584,289 ....................... ..........66,651,450 .......................23. Michigan................................................................................MI ....L....... ........12,891,266 ........23,075,389 ...................21,032,558 ....................... ..........56,999,213 .......................24. Minnesota............................................................................MN ....L....... ..........4,051,500 ..........4,259,210 .....................8,995,898 ....................... ..........17,306,608 .......................25. Mississippi...........................................................................MS ....L....... ..........1,809,228 ..........1,545,294 .....................3,366,390 ....................... ............6,720,912 .......................26. Missouri...............................................................................MO ....L....... ........10,659,413 ..........5,538,155 ...................18,530,814 ....................... ..........34,728,382 .......................27. Montana...............................................................................MT ....L....... ..........1,034,280 ....................529 .....................1,598,566 ....................... ............2,633,375 .......................28. Nebraska..............................................................................NE ....L....... ..........2,043,924 ..........1,626,985 .....................4,348,486 ....................... ............8,019,395 .......................29. Nevada.................................................................................NV ....L....... ..........1,218,909 ..........7,804,450 .....................4,281,974 ....................... ..........13,305,333 .......................30. New Hampshire...................................................................NH ....L....... ..........1,298,590 ..........3,523,151 .....................3,623,805 ....................... ............8,445,546 .......................31. New Jersey...........................................................................NJ ....L....... ........25,602,472 ........37,192,477 ...................40,849,968 ....................... ........103,644,917 .......................32. New Mexico.........................................................................NM ....L....... .............999,472 .............816,676 .....................1,726,313 ....................... ............3,542,461 .......................33. New York..............................................................................NY ....Q....... ...............48,590 .................2,682 ..........................89,461 ....................... ...............140,733 .......................34. North Carolina......................................................................NC ....L....... ........18,504,990 ........25,942,241 ...................30,480,048 ....................... ..........74,927,279 .......................35. North Dakota........................................................................ND ....L....... .............162,522 ..........1,774,415 .....................1,341,099 ....................... ............3,278,036 .......................36. Ohio.....................................................................................OH ....L....... ..........7,781,386 ........23,104,501 ...................22,775,168 ....................... ..........53,661,055 .......................37. Oklahoma.............................................................................OK ....L....... ..........4,579,594 ..........1,453,603 .....................4,321,544 ....................... ..........10,354,741 .......................38. Oregon.................................................................................OR ....L....... ..........2,068,408 ..........3,512,260 .....................5,274,215 ....................... ..........10,854,883 .......................39. Pennsylvania........................................................................PA ....L....... ........27,955,240 ........49,328,512 ...................38,386,202 ....................... ........115,669,954 .......................40. Rhode Island.........................................................................RI ....L....... .............713,467 ..........1,048,708 .....................1,159,851 ....................... ............2,922,026 .......................41. South Carolina.....................................................................SC ....L....... ..........3,146,785 ..........2,619,422 .....................7,087,106 ....................... ..........12,853,313 .......................42. South Dakota.......................................................................SD ....L....... .............226,550 .............218,916 ........................873,357 ....................... ............1,318,823 .......................43. Tennessee............................................................................TN ....L....... ........17,398,026 ........12,533,367 ...................29,220,937 ....................... ..........59,152,330 .......................44. Texas....................................................................................TX ....L....... ........27,620,798 ........10,312,927 ...................39,807,880 ....................... ..........77,741,605 .......................45. Utah......................................................................................UT ....L....... ..........5,864,895 .............945,036 .....................4,079,928 ....................... ..........10,889,859 .......................46. Vermont................................................................................VT ....L....... .............650,262 ..........2,269,629 .....................1,851,907 ....................... ............4,771,798 .......................47. Virginia.................................................................................VA ....L....... ........12,611,827 ..........7,349,050 ...................18,733,632 ....................... ..........38,694,509 .......................48. Washington.........................................................................WA ....L....... ..........6,765,589 ..........4,647,125 .....................9,867,960 ....................... ..........21,280,674 .......................49. West Virginia.......................................................................WV ....L....... .............239,104 ..........1,127,100 ........................696,569 ....................... ............2,062,773 .......................50. Wisconsin.............................................................................WI ....L....... ........15,439,103 ........64,755,319 ...................16,944,946 ....................... ..........97,139,368 .......................51. Wyoming.............................................................................WY ....L....... .............274,640 ..........2,775,313 ........................465,152 ....................... ............3,515,105 .......................52. American Samoa..................................................................AS ....N....... ........................... ........................... ...................................... ....................... ..........................0 .......................53. Guam...................................................................................GU ....L....... ........................... ........................... ...................................... ....................... ..........................0 .......................54. Puerto Rico..........................................................................PR ....L....... ...............97,759 ........................... ...................................... ....................... .................97,759 .......................55. US Virgin Islands...................................................................VI ....L....... ...............43,376 ........................... ...............................248 ....................... .................43,624 .......................56. Northern Mariana Islands....................................................MP ....N....... ........................... ........................... ...................................... ....................... ..........................0 .......................57. Canada..............................................................................CAN ....N....... ....................179 ........................... ..........................36,431 ....................... .................36,610 .......................58. Aggregate Other Alien..........................................................OT ...XXX... ........................0 ........................0 ...................................0 ....................0 ..........................0 ....................059. Subtotal..................................................................................... (a)....53 ......428,463,214 ......516,206,090 .................683,404,622 ....................0 .....1,628,073,926 ....................090. Reporting entity contributions for employee benefit plans........ ...XXX... ........................... ........................... ...................................... ....................... ..........................0 .......................91. Dividends or refunds applied to purchase paid-up

additions and annuities............................................................. ...XXX... ...............36,834 ........................... ...................................... ....................... .................36,834 .......................92. Dividends or refunds applied to shorten endowment or

premium paying period.............................................................. ...XXX... ........................... ........................... ...................................... ....................... ..........................0 .......................93. Premium or annuity considerations waived under

disability or other contract provisions........................................ ...XXX... .............166,223 ........................... ...................................... ....................... ...............166,223 .......................94. Aggregate other amounts not allocable by State...................... ...XXX... ........................0 ........................0 ...................................0 ....................0 ..........................0 ....................095. Totals (Direct Business)............................................................ ...XXX... ......428,666,271 ......516,206,090 .................683,404,622 ....................0 .....1,628,276,983 ....................096. Plus reinsurance assumed........................................................ ...XXX... .............218,349 ..........3,190,981 ...................60,914,996 ....................... ..........64,324,326 .........203,16697. Totals (All Business)................................................................. ...XXX... ......428,884,620 ......519,397,071 .................744,319,618 ....................0 .....1,692,601,309 .........203,16698. Less reinsurance ceded............................................................ ...XXX... ......245,597,775 .............925,203 ...................69,563,749 ....................... ........316,086,727 .......................99. Totals (All Business) less reinsurance ceded........................... ...XXX... ......183,286,845 ......518,471,868 (b)............674,755,869 ....................0 .....1,376,514,582 .........203,166

DETAILS OF WRITE-INS 58001. .................................................................................................. ...XXX... ........................... ........................... ...................................... ....................... ..........................0 .......................58002. .................................................................................................. ...XXX... ........................... ........................... ...................................... ....................... ..........................0 .......................58003. .................................................................................................. ...XXX... ........................... ........................... ...................................... ....................... ..........................0 .......................58998. Summ. of remaining write-ins for line 58 from overflow page... ...XXX... ........................0 ........................0 ...................................0 ....................0 ..........................0 ....................058999. Total (Lines 58001 thru 58003 plus 58998) (Line 58 above).... ...XXX... ........................0 ........................0 ...................................0 ....................0 ..........................0 ....................09401. .................................................................................................. ...XXX... ........................... ........................... ...................................... ....................... ..........................0 .......................9402. .................................................................................................. ...XXX... ........................... ........................... ...................................... ....................... ..........................0 .......................9403. .................................................................................................. ...XXX... ........................... ........................... ...................................... ....................... ..........................0 .......................9498. Summ. of remaining write-ins for line 94 from overflow page... ...XXX... ........................0 ........................0 ...................................0 ....................0 ..........................0 ....................09499. Total (Lines 9401 thru 9403 plus 9498) (Line 94 above).......... ...XXX... ........................0 ........................0 ...................................0 ....................0 ..........................0 ....................0

(L) - Licensed or Chartered - Licensed Insurance Carrier or Domicilied RRG; (R) - Registered - Non-domiciled RRGs; (Q) - Qualified - Qualified or Accredited Reinsurer; (E) - Eligible - Reporting Entities eligible or approved to write Surplus Lines in the state; (N) - None of the above - Not allowed to write business in the state.

Explanation of basis of allocation by states, etc., of premiums and annuity considerations. Ordinary life and individual accident and health premiums and annuity considerations are allocated to the last residence of eachinsured as shown by the Company's records. Group life and accident and health premiums are allocated to the state in whichthe employer's place of business is located.

(a) Insert the number of "L" responses except for Canada and Other Alien. (b) Column 4 should balance with Exhibit 1, Lines 6.4, 10.4 and 16.4, Cols. 8, 9, and 10, or with Schedule H, Part 1, Column 1, Line 1. Indicate which:

Exhibit 1, Lines 6.4, 10.4 and 16.4, Cols. 8, 9, 10


51

SCHEDULE T - PART 2INTERSTATE COMPACT - EXHIBIT OF PREMIUMS WRITTEN

Allocated by States and TerritoriesDirect Business Only

1 2 3 4 5 6Life Annuities Disability Income Long-Term Care

(Group and (Group and (Group and (Group and Deposit-TypeStates, Etc. Individual) Individual) Individual) Individual) Contracts Totals

1. Alabama...................................................................................AL .........12,010,157 ..............948,248 .........10,644,735 ............................ ............................ .........23,603,1392. Alaska......................................................................................AK ...........1,761,637 ..............321,114 ...........1,792,909 ............................ ............................ ...........3,875,6593. Arizona.....................................................................................AZ ...........5,194,509 .........17,579,583 ...........4,224,991 ............................ ............................ .........26,999,0834. Arkansas..................................................................................AR ...........2,561,729 ...........9,661,327 ...........4,548,953 ............................ ............................ .........16,772,0105. California..................................................................................CA .........43,213,454 .........50,656,430 .........56,086,854 ............................ ............................ .......149,956,7396. Colorado..................................................................................CO ...........3,243,071 ...........9,183,973 ...........6,486,895 ............................ ............................ .........18,913,9397. Connecticut..............................................................................CT ...........7,915,870 ...........7,794,663 ...........8,119,997 ............................ ............................ .........23,830,5298. Delaware..................................................................................DE ...........4,593,339 ...........1,503,670 ...........3,031,363 ............................ ............................ ...........9,128,3719. District of Columbia..................................................................DC ...........2,938,110 ................11,307 ...........4,644,461 ............................ ............................ ...........7,593,877

10. Florida.......................................................................................FL .........27,758,709 .........29,022,149 .........32,756,752 ............................ ............................ .........89,537,61111. Georgia....................................................................................GA .........16,643,141 ...........7,060,795 .........22,052,886 ............................ ............................ .........45,756,82212. Hawaii.......................................................................................HI ................73,274 ..............986,738 ..............569,483 ............................ ............................ ...........1,629,49413. Idaho.........................................................................................ID ..............214,743 ..............959,391 ...........1,637,866 ............................ ............................ ...........2,812,00114. Illinois.........................................................................................IL .........29,871,478 .........13,370,142 .........20,670,456 ............................ ............................ .........63,912,07615. Indiana......................................................................................IN ...........5,462,065 .........14,150,661 ...........7,285,824 ............................ ............................ .........26,898,55116. Iowa...........................................................................................IA ...........4,092,186 .........10,525,680 ...........5,781,417 ............................ ............................ .........20,399,28317. Kansas.....................................................................................KS ...........8,627,576 ...........1,872,556 ...........8,844,264 ............................ ............................ .........19,344,39718. Kentucky..................................................................................KY ...........6,082,214 ...........2,361,825 ...........7,680,720 ............................ ............................ .........16,124,75919. Louisiana..................................................................................LA ...........9,952,122 ...........2,377,073 .........12,356,045 ............................ ............................ .........24,685,24120. Maine.......................................................................................ME ..............333,947 ...........2,537,122 ..............862,164 ............................ ............................ ...........3,733,23321. Maryland..................................................................................MD .........10,078,717 ...........2,191,064 .........17,392,659 ............................ ............................ .........29,662,43922. Massachusetts.........................................................................MA .........12,039,020 .........30,028,141 .........22,205,885 ............................ ............................ .........64,273,04523. Michigan...................................................................................MI .........12,891,266 .........23,075,389 .........15,616,641 ............................ ............................ .........51,583,29624. Minnesota................................................................................MN ...........4,051,500 ...........4,259,210 ...........5,834,717 ............................ ............................ .........14,145,42725. Mississippi...............................................................................MS ...........1,809,228 ...........1,545,294 ...........2,668,528 ............................ ............................ ...........6,023,04926. Missouri...................................................................................MO .........10,659,413 ...........5,538,155 .........11,564,701 ............................ ............................ .........27,762,26927. Montana...................................................................................MT ...........1,034,280 .....................529 ..............847,380 ............................ ............................ ...........1,882,18828. Nebraska..................................................................................NE ...........2,043,924 ...........1,626,985 ...........3,272,384 ............................ ............................ ...........6,943,29329. Nevada....................................................................................NV ...........1,218,909 ...........7,804,450 ...........1,025,216 ............................ ............................ .........10,048,57530. New Hampshire.......................................................................NH ...........1,298,590 ...........3,523,151 ...........2,871,722 ............................ ............................ ...........7,693,46431. New Jersey...............................................................................NJ .........25,602,472 .........37,192,477 .........36,943,456 ............................ ............................ .........99,738,40632. New Mexico.............................................................................NM ..............999,472 ..............816,676 ...........1,394,491 ............................ ............................ ...........3,210,63933. New York.................................................................................NY ................48,590 ..................2,682 ............................ ............................ ............................ ................51,27234. North Carolina..........................................................................NC .........18,504,990 .........25,942,241 .........21,349,367 ............................ ............................ .........65,796,59835. North Dakota............................................................................ND ..............162,522 ...........1,774,415 ...........1,247,065 ............................ ............................ ...........3,184,00236. Ohio.........................................................................................OH ...........7,781,386 .........23,104,501 .........18,004,985 ............................ ............................ .........48,890,87237. Oklahoma................................................................................OK ...........4,579,594 ...........1,453,603 ...........3,695,512 ............................ ............................ ...........9,728,70938. Oregon....................................................................................OR ...........2,068,408 ...........3,512,260 ...........2,313,304 ............................ ............................ ...........7,893,97139. Pennsylvania............................................................................PA .........27,955,240 .........49,328,512 .........33,060,494 ............................ ............................ .......110,344,24640. Rhode Island.............................................................................RI ..............713,467 ...........1,048,708 ..............847,346 ............................ ............................ ...........2,609,52241. South Carolina.........................................................................SC ...........3,146,785 ...........2,619,422 ...........4,413,927 ............................ ............................ .........10,180,13542. South Dakota...........................................................................SD ..............226,550 ..............218,916 ..............288,091 ............................ ............................ ..............733,55643. Tennessee...............................................................................TN .........17,398,026 .........12,533,367 .........25,593,484 ............................ ............................ .........55,524,87744. Texas.......................................................................................TX .........27,620,798 .........10,312,927 .........27,758,966 ............................ ............................ .........65,692,69145. Utah.........................................................................................UT ...........5,864,895 ..............945,036 ...........3,393,688 ............................ ............................ .........10,203,61946. Vermont....................................................................................VT ..............650,262 ...........2,269,629 ...........1,439,154 ............................ ............................ ...........4,359,04547. Virginia.....................................................................................VA .........12,611,827 ...........7,349,050 .........14,886,558 ............................ ............................ .........34,847,43548. Washington.............................................................................WA ...........6,765,589 ...........4,647,125 ...........8,115,150 ............................ ............................ .........19,527,86349. West Virginia...........................................................................WV ..............239,104 ...........1,127,100 ..............470,161 ............................ ............................ ...........1,836,36550. Wisconsin.................................................................................WI .........15,439,103 .........64,755,319 .........14,167,117 ............................ ............................ .........94,361,53951. Wyoming.................................................................................WY ..............274,640 ...........2,775,313 ..............281,545 ............................ ............................ ...........3,331,49852. American Samoa......................................................................AS ............................ ............................ ............................ ............................ ............................ ........................053. Guam.......................................................................................GU ............................ ............................ ............................ ............................ ............................ ........................054. Puerto Rico..............................................................................PR ................97,759 ............................ ............................ ............................ ............................ ................97,75955. US Virgin Islands.......................................................................VI ................43,376 ............................ ............................ ............................ ............................ ................43,37656. Northern Mariana Islands.........................................................MP ............................ ............................ ............................ ............................ ............................ ........................057. Canada..................................................................................CAN .....................179 ............................ ............................ ............................ ............................ .....................17958. Aggregate Other Alien..............................................................OT ............................ ............................ ............................ ............................ ............................ ........................059. Totals............................................................................................ .......428,463,214 .......516,206,090 .......523,042,732 ........................0 ........................0 ....1,467,712,036


SI01

SUMMARY INVESTMENT SCHEDULE Gross Admitted Assets as Reported

Investment Holdings in the Annual Statement1 2 3 4 5 6

Securities Lending TotalReinvested (Col. 3 + 4)

Investment Categories Amount Percentage Amount Collateral Amount Amount Percentage

1. Bonds: 1.1 U.S. treasury securities................................................................................. ..............80,004,516 ............1.6 ..............80,004,516 ............................ ..............80,004,516 ............1.61.2 U.S. government agency obligations (excluding mortgage-backed

securities): 1.21 Issued by U.S. government agencies.................................................. ................................. ............0.0 ................................. ............................ ..............................0 ............0.01.22 Issued by U.S. government sponsored agencies................................ ................7,791,387 ............0.2 ................7,791,387 ............................ ................7,791,387 ............0.2

1.3 Non-U.S. government (including Canada, excluding mortgage- backed securities)......................................................................................... ............125,987,437 ............2.6 ............125,987,437 ............................ ............125,987,437 ............2.6

1.4 Securities issued by states, territories and possessions and political subdivisions in the U.S.: 1.41 States, territories and possessions general obligations....................... ..............15,978,046 ............0.3 ..............15,978,046 ............................ ..............15,978,046 ............0.31.42 Political subdivisions of states, territories and possessions and

political subdivisions general obligations............................................. ..............89,590,744 ............1.8 ..............89,590,744 ............................ ..............89,590,744 ............1.81.43 Revenue and assessment obligations................................................. ............366,116,583 ............7.5 ............366,116,583 ............................ ............366,116,583 ............7.51.44 Industrial development and similar obligations.................................... ................................. ............0.0 ................................. ............................ ..............................0 ............0.0

1.5 Mortgage-backed securities (includes residential and commercial MBS):1.51 Pass-through securities:

1.511 Issued or guaranteed by GNMA............................................... ..............18,665,183 ............0.4 ..............18,665,183 ............................ ..............18,665,183 ............0.41.512 Issued or guaranteed by FNMA and FHLMC............................ ..............53,838,592 ............1.1 ..............53,838,592 ............................ ..............53,838,592 ............1.11.513 All other..................................................................................... ................................. ............0.0 ................................. ............................ ..............................0 ............0.0

1.52 CMOs and REMICs: 1.521 Issued or guaranteed by GNMA, FNMA, FHLMC or VA........... ............269,469,159 ............5.5 ............269,469,159 ............................ ............269,469,159 ............5.51.522 Issued by non-U.S. Government issuers and collateralized by mortgage-based securities issued or guaranteed by agencies shown in Line 1.521............................................... ................................. ............0.0 ................................. ............................ ..............................0 ............0.01.523 All other..................................................................................... .........2,008,438,062 ..........40.9 .........2,008,438,062 ............................ .........2,008,438,062 ..........40.9

2. Other debt and other fixed income securities (excluding short-term): 2.1 Unaffiliated domestic securities (includes credit tenant loans and

hybrid securities)........................................................................................... ............977,649,273 ..........19.9 ............977,649,273 ............................ ............977,649,273 ..........19.92.2 Unaffiliated non-U.S. securities (including Canada)..................................... ............483,052,268 ............9.8 ............483,052,268 ............................ ............483,052,268 ............9.82.3 Affiliated securities........................................................................................ ................................. ............0.0 ................................. ............................ ..............................0 ............0.0

3. Equity interests: 3.1 Investments in mutual funds......................................................................... ..............50,290,635 ............1.0 ..............50,290,635 ............................ ..............50,290,635 ............1.03.2 Preferred stocks:

3.21 Affiliated............................................................................................... ................................. ............0.0 ................................. ............................ ..............................0 ............0.03.22 Unaffiliated........................................................................................... ..............10,587,260 ............0.2 ..............10,587,260 ............................ ..............10,587,260 ............0.2

3.3 Publicly traded equity securities (excluding preferred stocks): 3.31 Affiliated............................................................................................... ..............63,600,610 ............1.3 ..............63,600,610 ............................ ..............63,600,610 ............1.33.32 Unaffiliated........................................................................................... ..............11,955,838 ............0.2 ..............11,955,838 ............................ ..............11,955,838 ............0.2

3.4 Other equity securities: 3.41 Affiliated............................................................................................... ................................. ............0.0 ................................. ............................ ..............................0 ............0.03.42 Unaffiliated........................................................................................... .....................10,106 ............0.0 .....................10,106 ............................ .....................10,106 ............0.0

3.5 Other equity interests including tangible personal property under lease: 3.51 Affiliated............................................................................................... ................................. ............0.0 ................................. ............................ ..............................0 ............0.03.52 Unaffiliated........................................................................................... ................................. ............0.0 ................................. ............................ ..............................0 ............0.0

4. Mortgage loans: 4.1 Construction and land development............................................................. ................................. ............0.0 ................................. ............................ ..............................0 ............0.04.2 Agricultural.................................................................................................... ................................. ............0.0 ................................. ............................ ..............................0 ............0.04.3 Single family residential properties............................................................... ................................. ............0.0 ................................. ............................ ..............................0 ............0.04.4 Multifamily residential properties................................................................... ................................. ............0.0 ................................. ............................ ..............................0 ............0.04.5 Commercial loans......................................................................................... ..............40,782,400 ............0.8 ..............40,782,400 ............................ ..............40,782,400 ............0.84.6 Mezzanine real estate loans......................................................................... ................3,448,988 ............0.1 ................3,448,988 ............................ ................3,448,988 ............0.1

5. Real estate investments: 5.1 Property occupied by company..................................................................... ................................. ............0.0 ................................. ............................ ..............................0 ............0.05.2 Property held for production of income (including $..........0 of

property acquired in satisfaction of debt)...................................................... ................................. ............0.0 ................................. ............................ ..............................0 ............0.05.3 Property held for sale (including $.........0 property acquired in

satisfaction of debt)....................................................................................... ................................. ............0.0 ................................. ............................ ..............................0 ............0.06. Contract loans....................................................................................................... ...................306,395 ............0.0 ...................306,395 ............................ ...................306,395 ............0.07. Derivatives............................................................................................................ ................5,941,873 ............0.1 ................5,941,873 ............................ ................5,941,873 ............0.18. Receivables for securities..................................................................................... ................1,319,390 ............0.0 ................1,319,390 ............................ ................1,319,390 ............0.09. Securities lending (Line 10, Asset Page reinvested collateral)............................. ................................. ............0.0 ................................. .........XXX............ .........XXX................. .........XXX..

10. Cash, cash equivalents and short-term investments............................................ ..............69,180,240 ............1.4 ..............69,180,240 ............................ ..............69,180,240 ............1.411. Other invested assets........................................................................................... ............159,495,001 ............3.2 ............159,495,001 ............................ ............159,495,001 ............3.212. Total invested assets............................................................................................ .........4,913,499,986 ........100.0 .........4,913,499,986 .........................0 .........4,913,499,986 ........100.0

1111111 2 annual statement reliance standard … statement for the year 2012 of the reliance...

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