Financial Statements


SBL Variable Annuity Account XVII
Year Ended December 31, 2020
With Report of Independent Registered Public Accounting Firm


SBL Variable Annuity Account XVII

Financial Statements

Year Ended December 31, 2020




Contents

Report of Independent Registered Public Accounting Firm
1
   
Audited Financial Statements
 
   
Statements of Net Assets
Statements of Operations and Change in Net Assets
Notes to Financial Statements
1. Organization and Significant Accounting Policies
2. Variable Annuity Contract Charges
3. Summary of Unit Transactions
4. Financial Highlights
5. Subsequent Events
 
 4
5

14
14
18
20
21
27





Report of Independent Registered Public Accounting Firm

To the Board of Directors of Security Benefit Life Insurance Company and Contract Owners of SBL Variable Annuity Account XVII

Opinion on the Financial Statements

We have audited the accompanying statements of net assets of each of the subaccounts listed in the Appendix that comprise SBL Variable Annuity Account XVII (the Separate Account), as of December 31, 2020 and the related statements of operations and changes in net assets for each of the periods indicated in the Appendix, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each subaccount as of December 31, 2020, the results of its operations and changes in its net assets for each of the periods indicated in the Appendix, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on each of the subaccounts’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2020, by correspondence with the fund companies or their transfer agents, as applicable. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ ERNST & YOUNG LLP

We have served as the Separate Account’s auditor since 2003.

April 28, 2021
1




Appendix

Subaccounts comprising SBL Variable Annuity Account XVII

Subaccounts
Statements of operations and changes in net assets
American Century VP Ultra®
For each of the two years in the period ended December 31, 2020
American Century VP Value
For each of the two years in the period ended December 31, 2020
Guggenheim VIF All Cap Value
For each of the two years in the period ended December 31, 2020
Guggenheim VIF Alpha Opportunity
For each of the two years in the period ended December 31, 2020
Guggenheim VIF High Yield
For each of the two years in the period ended December 31, 2020
Guggenheim VIF Large Cap Value
For each of the two years in the period ended December 31, 2020
Guggenheim VIF Long Short Equity
For each of the two years in the period ended December 31, 2020
Guggenheim VIF Managed Asset Allocation
For each of the two years in the period ended December 31, 2020
Guggenheim VIF Small Cap Value
For each of the two years in the period ended December 31, 2020
Guggenheim VIF SMid Cap Value
For each of the two years in the period ended December 31, 2020
Guggenheim VIF StylePlus Large Growth
For each of the two years in the period ended December 31, 2020
Guggenheim VIF StylePlus Small Growth
For each of the two years in the period ended December 31, 2020
Guggenheim VIF Total Return Bond
For each of the two years in the period ended December 31, 2020
Guggenheim VIF World Equity Income
For each of the two years in the period ended December 31, 2020
Invesco Oppenheimer V.I. Conservative Balanced Fund
For each of the two years in the period ended December 31, 2020
Invesco Oppenheimer V.I. Main Street Small Cap Fund
For each of the two years in the period ended December 31, 2020
Invesco V.I. Equity and Income
For each of the two years in the period ended December 31, 2020
Invesco V.I. Global Real Estate
For each of the two years in the period ended December 31, 2020
Invesco V.I. Government Money Market
For each of the two years in the period ended December 31, 2020
Invesco V.I. Mid Cap Core Equity
For each of the two years in the period ended December 31, 2020
Invesco V.I. Value Opportunities
For each of the two years in the period ended December 31, 2020
MFS® VIT Total Return
For each of the two years in the period ended December 31, 2020
PIMCO VIT All Asset
For each of the two years in the period ended December 31, 2020


2





Subaccounts
Statements of operations and changes in net assets
PIMCO VIT Low Duration
For each of the two years in the period ended December 31, 2020
PIMCO VIT Real Return
For each of the two years in the period ended December 31, 2020



3

SBL Variable Annuity Account XVII
Statements of Net Assets
December 31, 2020

Subaccount
Number of Shares
Cost
Assets at Market Value
Net Assets
Units Outstanding
Range of Unit Values
               
American Century VP Ultra®
         660
$      8,958
$     17,660
$     17,660
         393
$  44.81
$  44.81
American Century VP Value
         675
       4,862
       7,555
       7,555
         328
   23.13
   23.13
Guggenheim VIF All Cap Value
       1,265
      31,891
      39,303
      39,303
       1,698
   23.16
   23.16
Guggenheim VIF Alpha Opportunity
         422
       6,085
       6,253
       6,253
         333
   18.81
   18.81
Guggenheim VIF High Yield
         260
       5,680
       7,149
       7,149
         333
   21.42
   21.42
Guggenheim VIF Large Cap Value
           -
           -
           -
           -
           -
   25.72
   25.72
Guggenheim VIF Long Short Equity
          65
         779
         938
         938
          65
   14.35
   14.35
Guggenheim VIF Managed Asset Allocation
       6,010
     133,712
     200,785
     200,785
      14,016
   13.88
   21.62
Guggenheim VIF Small Cap Value
         622
      20,493
      23,210
      23,210
         834
   27.79
   27.79
Guggenheim VIF SMid Cap Value
         278
      15,344
      18,959
      18,959
         600
   31.60
   31.60
Guggenheim VIF StylePlus Large Growth
           -
           -
           -
           -
           -
   37.40
   37.40
Guggenheim VIF StylePlus Small Growth
           -
           -
           -
           -
           -
   32.51
   32.51
Guggenheim VIF Total Return Bond
         323
       4,261
       5,845
       5,845
         412
   14.22
   14.22
Guggenheim VIF World Equity Income
           -
           -
           -
           -
           -
   19.66
   19.66
Invesco Oppenheimer V.I. Conservative Balanced Fund
       3,002
      41,057
      53,817
      53,817
       5,974
    9.00
    9.00
Invesco Oppenheimer V.I. Main Street Small Cap Fund
         401
       8,072
      10,787
      10,787
         319
   33.90
   33.90
Invesco V.I. Equity and Income
      13,808
     214,483
     246,056
     246,056
      17,357
   14.19
   14.19
Invesco V.I. Global Real Estate
         283
       4,429
       4,158
       4,158
         225
   18.45
   18.45
Invesco V.I. Government Money Market (a)
       1,388
       1,388
       1,388
       1,388
         147
    8.47
    9.44
Invesco V.I. Mid Cap Core Equity
         712
       8,414
       7,294
       7,294
         324
   22.57
   22.57
Invesco V.I. Value Opportunities
         948
       6,800
       5,317
       5,317
         323
   16.38
   16.38
MFS® VIT Total Return
       1,295
      27,325
      33,025
      33,025
       2,461
   13.42
   13.42
PIMCO VIT All Asset
      15,203
     167,098
     168,299
     168,299
      15,244
   10.82
   16.76
PIMCO VIT Low Duration
       3,048
      31,257
      31,633
      31,633
       2,718
   11.64
   11.64
PIMCO VIT Real Return
       2,123
      27,451
      29,559
      29,559
       2,056
   14.43
   14.43
               
(a) Liquidation.  See Note 1.
             

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

4

SBL Variable Annuity Account XVII
Statements of Operations and Change in Net Assets
Years Ended December 31, 2020 and 2019, Except as Noted

   
American Century VP Ultra®
   
American Century VP Value
   
Guggenheim VIF All Cap Value
 
Net assets as of December 31, 2018
 
$
9,134
   
$
6,140
   
$
42,419
 
Investment income (loss):
                       
Dividend distributions
   
-
     
136
     
591
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(212
)
   
(137
)
   
(858
)
Net investment income (loss)
   
(212
)
   
(1
)
   
(267
)
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
1,141
     
396
     
3,130
 
Realized capital gain (loss) on investments
   
61
     
47
     
2,580
 
Change in unrealized appreciation (depreciation)
   
1,919
     
1,060
     
2,886
 
Net gain (loss) on investments
   
3,121
     
1,503
     
8,596
 
Net increase (decrease) in net assets from operations
   
2,909
     
1,502
     
8,329
 
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
-
     
-
 
Terminations, withdrawals and annuity payments
   
-
     
-
     
(9,562
)
Transfers between subaccounts, net
   
-
     
-
     
-
 
Maintenance charges and mortality adjustments
   
-
     
-
     
-
 
Net decrease in net assets from contract transactions
   
-
     
-
     
(9,562
)
Total increase (decrease) in net assets
   
2,909
     
1,502
     
(1,233
)
Net assets as of December 31, 2019
 
$
12,043
   
$
7,642
   
$
41,186
 
Investment income (loss):
                       
Dividend distributions
   
-
     
143
     
642
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(275
)
   
(129
)
   
(694
)
Net investment income (loss)
   
(275
)
   
14
     
(52
)
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
1,264
     
171
     
1,905
 
Realized capital gain (loss) on investments
   
103
     
35
     
324
 
Change in unrealized appreciation (depreciation)
   
4,525
     
(307
)
   
(2,304
)
Net gain (loss) on investments
   
5,892
     
(101
)
   
(75
)
Net increase (decrease) in net assets from operations
   
5,617
     
(87
)
   
(127
)
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
-
     
-
 
Terminations, withdrawals and annuity payments
   
-
     
-
     
(1,756
)
Transfers between subaccounts, net
   
-
     
-
     
-
 
Maintenance charges and mortality adjustments
   
-
     
-
     
-
 
Net decrease in net assets from contract transactions
   
-
     
-
     
(1,756
)
Total increase (decrease) in net assets
   
5,617
     
(87
)
   
(1,883
)
Net assets as of December 31, 2020
 
$
17,660
   
$
7,555
   
$
39,303
 
                         
The accompanying notes are an integral part of these financial statements.
5

SBL Variable Annuity Account XVII
Statements of Operations and Change in Net Assets (continued)
Years Ended December 31, 2020 and 2019, Except as Noted

   
Guggenheim VIF Alpha Opportunity
   
Guggenheim VIF High Yield
   
Guggenheim VIF Large Cap Value
 
Net assets as of December 31, 2018
 
$
14,238
   
$
13,787
   
$
12,141
 
Investment income (loss):
                       
Dividend distributions
   
11
     
514
     
-
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(208
)
   
(218
)
   
(146
)
Net investment income (loss)
   
(197
)
   
296
     
(146
)
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
-
     
-
     
-
 
Realized capital gain (loss) on investments
   
33
     
2,374
     
2,812
 
Change in unrealized appreciation (depreciation)
   
(603
)
   
(1,547
)
   
(1,294
)
Net gain (loss) on investments
   
(570
)
   
827
     
1,518
 
Net increase (decrease) in net assets from operations
   
(767
)
   
1,123
     
1,372
 
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
-
     
-
 
Terminations, withdrawals and annuity payments
   
(7,148
)
   
(7,943
)
   
(13,514
)
Transfers between subaccounts, net
   
37
     
-
     
1
 
Maintenance charges and mortality adjustments
   
-
     
-
     
-
 
Net decrease in net assets from contract transactions
   
(7,111
)
   
(7,943
)
   
(13,513
)
Total increase (decrease) in net assets
   
(7,878
)
   
(6,820
)
   
(12,141
)
Net assets as of December 31, 2019
 
$
6,360
   
$
6,967
   
$
-
 
Investment income (loss):
                       
Dividend distributions
   
38
     
501
     
-
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(120
)
   
(133
)
   
-
 
Net investment income (loss)
   
(82
)
   
368
     
-
 
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
-
     
-
     
-
 
Realized capital gain (loss) on investments
   
(1
)
   
25
     
-
 
Change in unrealized appreciation (depreciation)
   
(24
)
   
(211
)
   
-
 
Net gain (loss) on investments
   
(25
)
   
(186
)
   
-
 
Net increase (decrease) in net assets from operations
   
(107
)
   
182
     
-
 
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
-
     
-
 
Terminations, withdrawals and annuity payments
   
-
     
-
     
-
 
Transfers between subaccounts, net
   
-
     
-
     
-
 
Maintenance charges and mortality adjustments
   
-
     
-
     
-
 
Net decrease in net assets from contract transactions
   
-
     
-
     
-
 
Total increase (decrease) in net assets
   
(107
)
   
182
     
-
 
Net assets as of December 31, 2020
 
$
6,253
   
$
7,149
   
$
-
 
                         
The accompanying notes are an integral part of these financial statements.
6

SBL Variable Annuity Account XVII
Statements of Operations and Change in Net Assets (continued)
Years Ended December 31, 2020 and 2019, Except as Noted

   
Guggenheim VIF Long Short Equity
   
Guggenheim VIF Managed Asset Allocation
   
Guggenheim VIF Small Cap Value
 
Net assets as of December 31, 2018
 
$
14,067
   
$
211,087
   
$
36,880
 
Investment income (loss):
                       
Dividend distributions
   
81
     
3,545
     
182
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(280
)
   
(3,000
)
   
(646
)
Net investment income (loss)
   
(199
)
   
545
     
(464
)
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
-
     
1,711
     
1,348
 
Realized capital gain (loss) on investments
   
31
     
28,984
     
3,480
 
Change in unrealized appreciation (depreciation)
   
658
     
5,513
     
1,377
 
Net gain (loss) on investments
   
689
     
36,208
     
6,205
 
Net increase (decrease) in net assets from operations
   
490
     
36,753
     
5,741
 
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
37,508
     
-
 
Terminations, withdrawals and annuity payments
   
-
     
(81,393
)
   
(18,326
)
Transfers between subaccounts, net
   
-
     
-
     
-
 
Maintenance charges and mortality adjustments
   
-
     
(638
)
   
-
 
Net decrease in net assets from contract transactions
   
-
     
(44,523
)
   
(18,326
)
Total increase (decrease) in net assets
   
490
     
(7,770
)
   
(12,585
)
Net assets as of December 31, 2019
 
$
14,557
   
$
203,317
   
$
24,295
 
Investment income (loss):
                       
Dividend distributions
   
119
     
2,818
     
215
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(194
)
   
(2,550
)
   
(394
)
Net investment income (loss)
   
(75
)
   
268
     
(179
)
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
-
     
10,866
     
1,554
 
Realized capital gain (loss) on investments
   
1,534
     
5,839
     
22
 
Change in unrealized appreciation (depreciation)
   
(1,830
)
   
979
     
(2,123
)
Net gain (loss) on investments
   
(296
)
   
17,684
     
(547
)
Net increase (decrease) in net assets from operations
   
(371
)
   
17,952
     
(726
)
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
172
     
-
 
Terminations, withdrawals and annuity payments
   
(13,248
)
   
(20,109
)
   
(359
)
Transfers between subaccounts, net
   
-
     
-
     
-
 
Maintenance charges and mortality adjustments
   
-
     
(547
)
   
-
 
Net decrease in net assets from contract transactions
   
(13,248
)
   
(20,484
)
   
(359
)
Total increase (decrease) in net assets
   
(13,619
)
   
(2,532
)
   
(1,085
)
Net assets as of December 31, 2020
 
$
938
   
$
200,785
   
$
23,210
 
                         
The accompanying notes are an integral part of these financial statements.
7

SBL Variable Annuity Account XVII
Statements of Operations and Change in Net Assets (continued)
Years Ended December 31, 2020 and 2019, Except as Noted

   
Guggenheim VIF SMid Cap Value
   
Guggenheim VIF StylePlus Large Growth
   
Guggenheim VIF StylePlus Small Growth
 
Net assets as of December 31, 2018
 
$
23,975
   
$
8,107
   
$
12,741
 
Investment income (loss):
                       
Dividend distributions
   
153
     
-
     
-
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(444
)
   
(101
)
   
(160
)
Net investment income (loss)
   
(291
)
   
(101
)
   
(160
)
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
1,810
     
-
     
-
 
Realized capital gain (loss) on investments
   
2,423
     
4,082
     
5,450
 
Change in unrealized appreciation (depreciation)
   
824
     
(2,223
)
   
(3,163
)
Net gain (loss) on investments
   
5,057
     
1,859
     
2,287
 
Net increase (decrease) in net assets from operations
   
4,766
     
1,758
     
2,127
 
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
-
     
-
 
Terminations, withdrawals and annuity payments
   
(10,203
)
   
(9,905
)
   
(14,879
)
Transfers between subaccounts, net
   
-
     
40
     
11
 
Maintenance charges and mortality adjustments
   
-
     
-
     
-
 
Net decrease in net assets from contract transactions
   
(10,203
)
   
(9,865
)
   
(14,868
)
Total increase (decrease) in net assets
   
(5,437
)
   
(8,107
)
   
(12,741
)
Net assets as of December 31, 2019
 
$
18,538
   
$
-
   
$
-
 
Investment income (loss):
                       
Dividend distributions
   
202
     
-
     
-
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(316
)
   
-
     
-
 
Net investment income (loss)
   
(114
)
   
-
     
-
 
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
640
     
-
     
-
 
Realized capital gain (loss) on investments
   
20
     
-
     
-
 
Change in unrealized appreciation (depreciation)
   
(125
)
   
-
     
-
 
Net gain (loss) on investments
   
535
     
-
     
-
 
Net increase (decrease) in net assets from operations
   
421
     
-
     
-
 
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
-
     
-
 
Terminations, withdrawals and annuity payments
   
-
     
-
     
-
 
Transfers between subaccounts, net
   
-
     
-
     
-
 
Maintenance charges and mortality adjustments
   
-
     
-
     
-
 
Net decrease in net assets from contract transactions
   
-
     
-
     
-
 
Total increase (decrease) in net assets
   
421
     
-
     
-
 
Net assets as of December 31, 2020
 
$
18,959
   
$
-
   
$
-
 
                         
The accompanying notes are an integral part of these financial statements.
8

SBL Variable Annuity Account XVII
Statements of Operations and Change in Net Assets (continued)
Years Ended December 31, 2020 and 2019, Except as Noted

   
Guggenheim VIF Total Return Bond
   
Guggenheim VIF World Equity Income
   
Invesco Oppenheimer V.I. Conservative Balanced Fund
 
Net assets as of December 31, 2018
 
$
19,191
   
$
5,562
   
$
53,663
 
Investment income (loss):
                       
Dividend distributions
   
523
     
-
     
1,251
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(385
)
   
(66
)
   
(915
)
Net investment income (loss)
   
138
     
(66
)
   
336
 
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
-
     
-
     
886
 
Realized capital gain (loss) on investments
   
72
     
1,872
     
1,321
 
Change in unrealized appreciation (depreciation)
   
260
     
(1,133
)
   
5,207
 
Net gain (loss) on investments
   
332
     
739
     
7,414
 
Net increase (decrease) in net assets from operations
   
470
     
673
     
7,750
 
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
-
     
-
 
Terminations, withdrawals and annuity payments
   
-
     
(6,236
)
   
(9,445
)
Transfers between subaccounts, net
   
-
     
1
     
-
 
Maintenance charges and mortality adjustments
   
-
     
-
     
(123
)
Net decrease in net assets from contract transactions
   
-
     
(6,235
)
   
(9,568
)
Total increase (decrease) in net assets
   
470
     
(5,562
)
   
(1,818
)
Net assets as of December 31, 2019
 
$
19,661
   
$
-
   
$
51,845
 
Investment income (loss):
                       
Dividend distributions
   
376
     
-
     
1,061
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(319
)
   
-
     
(869
)
Net investment income (loss)
   
57
     
-
     
192
 
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
-
     
-
     
1,179
 
Realized capital gain (loss) on investments
   
4,051
     
-
     
551
 
Change in unrealized appreciation (depreciation)
   
(2,088
)
   
-
     
3,905
 
Net gain (loss) on investments
   
1,963
     
-
     
5,635
 
Net increase (decrease) in net assets from operations
   
2,020
     
-
     
5,827
 
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
-
     
-
 
Terminations, withdrawals and annuity payments
   
(15,836
)
   
-
     
(3,724
)
Transfers between subaccounts, net
   
-
     
-
     
-
 
Maintenance charges and mortality adjustments
   
-
     
-
     
(131
)
Net decrease in net assets from contract transactions
   
(15,836
)
   
-
     
(3,855
)
Total increase (decrease) in net assets
   
(13,816
)
   
-
     
1,972
 
Net assets as of December 31, 2020
 
$
5,845
   
$
-
   
$
53,817
 
                         
The accompanying notes are an integral part of these financial statements.
9

SBL Variable Annuity Account XVII
Statements of Operations and Change in Net Assets (continued)
Years Ended December 31, 2020 and 2019, Except as Noted

   
Invesco Oppenheimer V.I. Main Street Small Cap Fund
   
Invesco V.I. Equity and Income
   
Invesco V.I. Global Real Estate
 
Net assets as of December 31, 2018
 
$
15,907
   
$
243,306
   
$
4,468
 
Investment income (loss):
                       
Dividend distributions
   
-
     
5,966
     
233
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(270
)
   
(3,793
)
   
(100
)
Net investment income (loss)
   
(270
)
   
2,173
     
133
 
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
1,699
     
18,595
     
6
 
Realized capital gain (loss) on investments
   
325
     
12,258
     
39
 
Change in unrealized appreciation (depreciation)
   
1,113
     
9,927
     
736
 
Net gain (loss) on investments
   
3,137
     
40,780
     
781
 
Net increase (decrease) in net assets from operations
   
2,867
     
42,953
     
914
 
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
40,188
     
-
 
Terminations, withdrawals and annuity payments
   
(9,579
)
   
(72,089
)
   
(257
)
Transfers between subaccounts, net
   
-
     
-
     
-
 
Maintenance charges and mortality adjustments
   
-
     
(895
)
   
-
 
Net decrease in net assets from contract transactions
   
(9,579
)
   
(32,796
)
   
(257
)
Total increase (decrease) in net assets
   
(6,712
)
   
10,157
     
657
 
Net assets as of December 31, 2019
 
$
9,195
   
$
253,463
   
$
5,125
 
Investment income (loss):
                       
Dividend distributions
   
32
     
4,901
     
214
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(167
)
   
(3,235
)
   
(84
)
Net investment income (loss)
   
(135
)
   
1,666
     
130
 
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
128
     
10,133
     
120
 
Realized capital gain (loss) on investments
   
10
     
(727
)
   
(21
)
Change in unrealized appreciation (depreciation)
   
1,589
     
3,718
     
(949
)
Net gain (loss) on investments
   
1,727
     
13,124
     
(850
)
Net increase (decrease) in net assets from operations
   
1,592
     
14,790
     
(720
)
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
268
     
-
 
Terminations, withdrawals and annuity payments
   
-
     
(21,713
)
   
(247
)
Transfers between subaccounts, net
   
-
     
-
     
-
 
Maintenance charges and mortality adjustments
   
-
     
(752
)
   
-
 
Net decrease in net assets from contract transactions
   
-
     
(22,197
)
   
(247
)
Total increase (decrease) in net assets
   
1,592
     
(7,407
)
   
(967
)
Net assets as of December 31, 2020
 
$
10,787
   
$
246,056
   
$
4,158
 
                         
The accompanying notes are an integral part of these financial statements.
10

SBL Variable Annuity Account XVII
Statements of Operations and Change in Net Assets (continued)
Years Ended December 31, 2020 and 2019, Except as Noted

   
Invesco V.I. Government Money Market(a)
   
Invesco V.I. Mid Cap Core Equity
   
Invesco V.I. Value Opportunities
 
Net assets as of December 31, 2018
 
$
11,857
   
$
11,995
   
$
4,035
 
Investment income (loss):
                       
Dividend distributions
   
193
     
14
     
-
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(232
)
   
(203
)
   
(93
)
Net investment income (loss)
   
(39
)
   
(189
)
   
(93
)
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
-
     
712
     
1,019
 
Realized capital gain (loss) on investments
   
-
     
(108
)
   
(25
)
Change in unrealized appreciation (depreciation)
   
-
     
1,841
     
213
 
Net gain (loss) on investments
   
-
     
2,445
     
1,207
 
Net increase (decrease) in net assets from operations
   
(39
)
   
2,256
     
1,114
 
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
-
     
-
 
Terminations, withdrawals and annuity payments
   
(94
)
   
(7,422
)
   
-
 
Transfers between subaccounts, net
   
-
     
-
     
-
 
Maintenance charges and mortality adjustments
   
-
     
-
     
-
 
Net decrease in net assets from contract transactions
   
(94
)
   
(7,422
)
   
-
 
Total increase (decrease) in net assets
   
(133
)
   
(5,166
)
   
1,114
 
Net assets as of December 31, 2019
 
$
11,724
   
$
6,829
   
$
5,149
 
Investment income (loss):
                       
Dividend distributions
   
24
     
31
     
4
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(171
)
   
(123
)
   
(85
)
Net investment income (loss)
   
(147
)
   
(92
)
   
(81
)
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
-
     
1,345
     
197
 
Realized capital gain (loss) on investments
   
-
     
(22
)
   
(48
)
Change in unrealized appreciation (depreciation)
   
-
     
(766
)
   
100
 
Net gain (loss) on investments
   
-
     
557
     
249
 
Net increase (decrease) in net assets from operations
   
(147
)
   
465
     
168
 
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
-
     
-
 
Terminations, withdrawals and annuity payments
   
(10,189
)
   
-
     
-
 
Transfers between subaccounts, net
   
-
     
-
     
-
 
Maintenance charges and mortality adjustments
   
-
     
-
     
-
 
Net decrease in net assets from contract transactions
   
(10,189
)
   
-
     
-
 
Total increase (decrease) in net assets
   
(10,336
)
   
465
     
168
 
Net assets as of December 31, 2020
 
$
1,388
   
$
7,294
   
$
5,317
 
                         
(a) Liquidation.  See Note 1.
                       

The accompanying notes are an integral part of these financial statements.
11

SBL Variable Annuity Account XVII
Statements of Operations and Change in Net Assets (continued)
Years Ended December 31, 2020 and 2019, Except as Noted

   
MFS® VIT Total Return
   
PIMCO VIT All Asset
   
PIMCO VIT Low Duration
 
Net assets as of December 31, 2018
 
$
27,233
   
$
174,271
   
$
45,470
 
Investment income (loss):
                       
Dividend distributions
   
638
     
5,261
     
1,270
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(390
)
   
(2,427
)
   
(903
)
Net investment income (loss)
   
248
     
2,834
     
367
 
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
816
     
-
     
-
 
Realized capital gain (loss) on investments
   
129
     
(2,945
)
   
(16
)
Change in unrealized appreciation (depreciation)
   
3,813
     
17,816
     
557
 
Net gain (loss) on investments
   
4,758
     
14,871
     
541
 
Net increase (decrease) in net assets from operations
   
5,006
     
17,705
     
908
 
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
31,782
     
-
 
Terminations, withdrawals and annuity payments
   
(678
)
   
(48,755
)
   
(1,659
)
Transfers between subaccounts, net
   
-
     
-
     
-
 
Maintenance charges and mortality adjustments
   
(120
)
   
(652
)
   
-
 
Net decrease in net assets from contract transactions
   
(798
)
   
(17,625
)
   
(1,659
)
Total increase (decrease) in net assets
   
4,208
     
80
     
(751
)
Net assets as of December 31, 2019
 
$
31,441
   
$
174,351
   
$
44,719
 
Investment income (loss):
                       
Dividend distributions
   
634
     
7,834
     
513
 
  Investment Expenses:
                       
Mortality and expense risk and administrative charges
   
(397
)
   
(2,104
)
   
(813
)
Net investment income (loss)
   
237
     
5,730
     
(300
)
Increase (decrease) in net assets from operations:
                       
Capital gain distributions
   
825
     
-
     
-
 
Realized capital gain (loss) on investments
   
156
     
(2,303
)
   
139
 
Change in unrealized appreciation (depreciation)
   
1,253
     
5,406
     
622
 
Net gain (loss) on investments
   
2,234
     
3,103
     
761
 
Net increase (decrease) in net assets from operations
   
2,471
     
8,833
     
461
 
Contract owner transactions:
                       
Variable annuity deposits
   
-
     
209
     
-
 
Terminations, withdrawals and annuity payments
   
(767
)
   
(14,554
)
   
(13,547
)
Transfers between subaccounts, net
   
-
     
-
     
-
 
Maintenance charges and mortality adjustments
   
(120
)
   
(540
)
   
-
 
Net decrease in net assets from contract transactions
   
(887
)
   
(14,885
)
   
(13,547
)
Total increase (decrease) in net assets
   
1,584
     
(6,052
)
   
(13,086
)
Net assets as of December 31, 2020
 
$
33,025
   
$
168,299
   
$
31,633
 
                         

12

SBL Variable Annuity Account XVII
Statements of Operations and Change in Net Assets (continued)
Years Ended December 31, 2020 and 2019, Except as Noted

   
PIMCO VIT Real Return
 
Net assets as of December 31, 2018
 
$
38,607
 
Investment income (loss):
       
Dividend distributions
   
667
 
  Investment Expenses:
       
Mortality and expense risk and administrative charges
   
(789
)
Net investment income (loss)
   
(122
)
Increase (decrease) in net assets from operations:
       
Capital gain distributions
   
-
 
Realized capital gain (loss) on investments
   
(65
)
Change in unrealized appreciation (depreciation)
   
2,622
 
Net gain (loss) on investments
   
2,557
 
Net increase (decrease) in net assets from operations
   
2,435
 
Contract owner transactions:
       
Variable annuity deposits
   
-
 
Terminations, withdrawals and annuity payments
   
(1,049
)
Transfers between subaccounts, net
   
-
 
Maintenance charges and mortality adjustments
   
-
 
Net decrease in net assets from contract transactions
   
(1,049
)
Total increase (decrease) in net assets
   
1,386
 
Net assets as of December 31, 2019
 
$
39,993
 
Investment income (loss):
       
Dividend distributions
   
524
 
  Investment Expenses:
       
Mortality and expense risk and administrative charges
   
(747
)
Net investment income (loss)
   
(223
)
Increase (decrease) in net assets from operations:
       
Capital gain distributions
   
-
 
Realized capital gain (loss) on investments
   
807
 
Change in unrealized appreciation (depreciation)
   
3,001
 
Net gain (loss) on investments
   
3,808
 
Net increase (decrease) in net assets from operations
   
3,585
 
Contract owner transactions:
       
Variable annuity deposits
   
-
 
Terminations, withdrawals and annuity payments
   
(14,019
)
Transfers between subaccounts, net
   
-
 
Maintenance charges and mortality adjustments
   
-
 
Net decrease in net assets from contract transactions
   
(14,019
)
Total increase (decrease) in net assets
   
(10,434
)
Net assets as of December 31, 2020
 
$
29,559
 
         
The accompanying notes are an integral part of these financial statements.
13

SBL Variable Annuity Account XVII
Notes to Financial Statements
December 31, 2020

1. Organization and Significant Accounting Policies

SBL Variable Annuity Account XVII (the Account) is a deferred variable annuity contract offered by Security Benefit Life Insurance Company (SBL). The Account is an investment company as defined by Financial Accounting Standard Board (FASB) Accounting Standard Codification (ASC) 946. The Account follows the accounting guidance as outlined in ASC 946. Purchase payments for ClassicStrategies and ThirdFed are allocated to one or more of the subaccounts that comprise the Account.   The Account is registered as a unit investment trust under the Investment Company Act of 1940, as amended.  Deposits received by the Account are invested in the MFS Variable Insurance Trust, Oppenheimer Variable Account Funds, Pacific Investment Management Company (PIMCO) Variable Insurance Trust, SBL Fund and The Universal Institutional Funds, Inc. mutual funds not otherwise available to the public.As directed by the owners, amounts directed to each subaccount are invested in a designated mutual fund as follows:

Subaccount/Mutual Fund
Class
Investment Adviser
Sub-Adviser
       
American Century VP Ultra®
II
American Century Investment Management, Inc
 -
American Century VP Value
II
American Century Investment Management, Inc
 -
BNY Mellon IP Technology Growth
Service
BNY Mellon Investment Adviser, Inc
 -
Guggenheim VIF All Cap Value
 -
Security Investors, LLC
 -
Guggenheim VIF Alpha Opportunity
 -
Security Investors, LLC
 -
Guggenheim VIF High Yield
 -
Security Investors, LLC
 -
Guggenheim VIF Large Cap Value
 -
Security Investors, LLC
 -
Guggenheim VIF Long Short Equity
 -
Security Investors, LLC
 -
Guggenheim VIF Managed Asset Allocation
 -
Security Investors, LLC
 -
Guggenheim VIF Small Cap Value
 -
Security Investors, LLC
 -
Guggenheim VIF SMid Cap Value
 -
Security Investors, LLC
 -
Guggenheim VIF StylePlus Large Core
 -
Security Investors, LLC
 -
Guggenheim VIF StylePlus Large Growth
 -
Security Investors, LLC
 -
Guggenheim VIF StylePlus Mid Growth
 -
Security Investors, LLC
 -
Guggenheim VIF StylePlus Small Growth
 -
Security Investors, LLC
 -
Guggenheim VIF Total Return Bond
 -
Security Investors, LLC
 -
Guggenheim VIF World Equity Income
 -
Security Investors, LLC
 -
Invesco Oppenheimer V.I. Conservative Balanced Fund
Series I
Invesco Advisers, Inc
 -
Invesco Oppenheimer V.I. Main Street Small Cap Fund
Series II
Invesco Advisers, Inc
 -
Invesco V.I. Equity and Income
Series II
Invesco Advisers, Inc
 -
Invesco V.I. Global Real Estate
Series I
Invesco Advisers, Inc
Invesco Asset Management Ltd
Invesco V.I. Government Money Market
Series II
Invesco Advisers, Inc
 -
Invesco V.I. Health Care
Series I
Invesco Advisers, Inc
 -
Invesco V.I. International Growth
Series II
Invesco Advisers, Inc
 -
Invesco V.I. Mid Cap Core Equity
Series II
Invesco Advisers, Inc
 -

14

SBL Variable Annuity Account XVII
Notes to Financial Statements (continued)

1. Organization and Significant Accounting Policies (continued)

Subaccount/Mutual Fund
Class
Investment Adviser
Sub-Adviser
       
Invesco V.I. Value Opportunities
Series II
Invesco Advisers, Inc
 -
MFS® VIT Total Return
Service
Massachusetts Financial Services Company
 -
Neuberger Berman AMT Sustainable Equity
S
Neuberger Berman Investment Advisers LLC
 -
PIMCO VIT All Asset
Administrative
Pacific Investment Management Company, LLC
Research Affiliates LLC
PIMCO VIT Low Duration
Administrative
Pacific Investment Management Company, LLC
 -
PIMCO VIT Real Return
Administrative
Pacific Investment Management Company, LLC
 -

Under applicable insurance law, the assets and liabilities of the Account are clearly identified and distinguished from SBL’s other assets and liabilities. The portion of the Account’s assets applicable to the variable annuity contracts is not chargeable with liabilities arising out of any other business SBL may conduct.


15

SBL Variable Annuity Account XVII
Notes to Financial Statements (continued)

1. Organization and Significant Accounting Policies (continued)
 
Thirty-one subaccounts are currently offered by the Account.  The following subaccounts had no activity for two consecutive years and are not included in the statements of net assets or the statements of operations and changes in net assets:
 
Subaccount
 
   
BNY Mellon IP Technology Growth
 
Guggenheim VIF StylePlus Large Core
 
Guggenheim VIF StylePlus Mid Growth
 
Invesco V.I. Health Care
 
Invesco V.I. International Growth
 
Neuberger Berman AMT Sustainable Equity
 

All subaccounts reported a full twelve month period except for the following as indicated:
 
Inception Date
Subaccount
 
     
April 29, 2016
Invesco V.I. Government Money Market
 

During the current year the following subaccount was liquidated and subsequently reinvested:
Date
Liquidated Subaccount
Reinvested Subaccount
Transferred Assets ($)
       
April 30, 2020
BNY Mellon VIF International Value
Invesco V.I. Government Money Market
          -

Investment Valuation

Investments in mutual fund shares are carried in the statements of net assets at market value (net asset value of the underlying mutual fund).  Investment transactions are accounted for on the trade date.  Realized capital gains and losses on sales of investments are determined based on the average cost of investments sold.  The difference between cost and current market value of investments owned on the day of measurement is recorded as unrealized appreciation or depreciation of investments.

The cost of investment purchases and proceeds from investments sold for the year ended December 31, 2020, were as follows:

Subaccount
Cost of Purchases
Proceeds from Sales
     

American Century VP Ultra®
$      1,264
$        275
American Century VP Value
         314
         129
Guggenheim VIF All Cap Value
       2,547
       2,450
Guggenheim VIF Alpha Opportunity
          38
         120
Guggenheim VIF High Yield
         501
         133
Guggenheim VIF Long Short Equity
         119
      13,442
Guggenheim VIF Managed Asset Allocation
      13,684
      23,034
Guggenheim VIF Small Cap Value
       1,769
         753
Guggenheim VIF SMid Cap Value
         842
         316
Guggenheim VIF Total Return Bond
         376
      16,155
Invesco Oppenheimer V.I. Conservative Balanced Fund
       2,239
       4,723
Invesco Oppenheimer V.I. Main Street Small Cap Fund
         160
         167
Invesco V.I. Equity and Income
      15,034
      25,432
Invesco V.I. Global Real Estate
         334
         331

16



SBL Variable Annuity Account XVII
Notes to Financial Statements (continued)

1. Organization and Significant Accounting Policies (continued)

Subaccount
Cost of Purchases
Proceeds from Sales
     
Invesco V.I. Government Money Market (a)
$         24
 $     10,360
Invesco V.I. Mid Cap Core Equity
       1,376
         123
Invesco V.I. Value Opportunities
         201
          85
MFS® VIT Total Return
       1,460
       1,285
PIMCO VIT All Asset
       7,834
      16,989
PIMCO VIT Low Duration
         513
      14,360
PIMCO VIT Real Return
         524
      14,766
     
(a) Liquidation.  See Note 1.
   

Market Risk

Each subaccount invests in shares of a single underlying fund.  The investment performance of each subaccount will reflect the investment performance of the underlying fund less separate account expenses. There is no assurance that the investment objective of any underlying fund will be met.  A fund calculates a daily net asset value per share (“NAV”) which is based on the market value of its investment portfolio. The amount of risk varies significantly between subaccounts. Due to the level of risk associated with certain investment portfolios, it is at least reasonably possible that changes in the values of investment portfolios will occur in the near term and that such changes could materially affect contractholders’ investments in the funds and the amounts reported in the statements of net assets. The contractholder assumes all of the investment performance risk for the subaccounts selected.

Annuity Assets

As of December 31, 2020, annuity reserves have not been established, as there are no contracts that have matured and are in the payout stage. Such reserves would be computed on the basis of published mortality tables using assumed interest rates that will provide reserves as prescribed by law. In cases where the payout option selected is life contingent, SBL periodically recalculates the required annuity reserves, and any resulting adjustment is either charged or credited to SBL and not to the Account.

Reinvestment of Dividends

Dividend and capital gain distributions paid by the mutual funds to the Account are reinvested in additional shares of each respective fund. Dividend income and capital gain distributions are recorded as income on the ex-dividend date.

Federal Income Taxes

The operations of the Account are included in the federal income tax return of SBL, which is taxed as a life insurance company under the provisions of the Internal Revenue Code (IRC). Under the current provisions of the IRC, SBL does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited under contracts. Based on this, no charge is being made currently to the Account for federal income taxes. SBL will review periodically the status of this policy in the event of changes in the tax law.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

As the economic and regulatory environment continues to evolve related to COVID-19, we cannot reasonably estimate the length or severity of this event or the impact to Separate Account performance and financial results. However, in general, a
17

SBL Variable Annuity Account XVII
Notes to Financial Statements (continued)

1. Organization and Significant Accounting Policies (continued)

deterioration in general economic and business conditions can have a negative impact on individual unit values and could cause a net decrease in net assets resulting from operations of the separate account.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). 

The Account invests in shares of open-end mutual funds, which process contractholders directed purchases, sales and transfers on a daily basis at the funds’ computed net asset values (NAVs).  The fair value of the Account’s assets is based on the NAVs of mutual funds, which are obtained from the custodians and reflect the fair values of the mutual fund investments.  The NAV is calculated daily and is based on the fair values of the underlying securities.

Because the fund provides liquidity for the investments through purchases and redemptions at NAV, this may represent the fair value of the investment in the fund.  That is, for an open-ended mutual fund, the fair value of an investment in the fund would not be expected to be higher than the amount that a new investor would be required to spend in order to directly invest in the mutual fund. Similarly, the hypothetical seller of the investment would not be expected to accept less in proceeds than it could receive by directly redeeming its investment with the fund.
 
The Account had no financial liabilities as of December 31, 2020.

2. Variable Annuity Contract Charges

ClassicStrategies
 
Mortality and Expense Risk Charge: Mortality and expense risks assumed by SBL are compensated for by a fee equivalent to an annual rate of 0.85% of the average daily net asset.
 
Administrative Charge: SBL deducts a daily administrative charge equivalent to an annual rate of 0.15% of the average daily net asset value.
 
These charges are presented as expenses on the statements of changes in net assets under Mortality and expense risk and administrative charges line item.
 
Premium Tax Charge: When applicable, an amount for state premium taxes is deducted as provided by pertinent state law either from the purchase payments or from the amount applied to effect an annuity at the time annuity payments commence.
 
Contract owner maintenance charges presented as a decrease in units on the statements of changes in net assets under the Maintenance charges and mortality adjustment line item may include the following:
 
 Contingent Deferred Sales Charge (CDSC): SBL deducts a CDSC (also referred to as a “withdrawal charge”) of up to 8% of any portion of a withdrawal, consisting of purchase payments, that exceed the free withdrawal amount for units withdrawn in the first seven years of the contract.
 
 Rider Charge: SBL deducts a monthly amount for each rider, equal to a percentage of contract value, not to exceed a total charge of 0.95% of the contract value.
 

18

SBL Variable Annuity Account XVII
Notes to Financial Statements (continued)

2. Variable Annuity Contract Charges (continued)

ThirdFed
 
Mortality and Expense Risk Charge: Mortality and expense risks assumed by SBL are compensated for by a fee equivalent to an annual rate of 1.15% of the average daily net asset value.
 
Administrative Charge: SBL deducts a daily administration charge equivalent to an annual rate of 0.15% for the Guggenheim VIF Managed Asset Allocation, Guggenheim VIF Money Market subaccounts, MFS VIT Total Return and PIMCO VIT All Asset; 0.30% for the Invesco V.I. Equity and Income subaccount; and 0.55% for the Oppenheimer Conservative Balanced Fund/VA subaccount of the average daily net asset value.
 
These charges are presented as expenses on the statements of changes in net assets under Mortality and expense risk and administrative charges line item.
 
Premium Tax Charge: When applicable, an amount for state premium taxes is deducted as provided by pertinent state law either from purchase payments or from the amount applied to effect an annuity at the time annuity payments commence.
 
Contract owner maintenance charges presented as a decrease in units on the statements of changes in net assets under the Maintenance charges and mortality adjustment line item may include the following:
 
 Contingent Deferred Sales Charge (CDSC): SBL deducts a CDSC (also referred to as a “withdrawal charge”) of up to 7% of any portion of a withdrawal, consisting of purchase payments, that exceed the free withdrawal amount for units withdrawn in the first five years of the contract.
 
 Rider Charge: SBL deducts a monthly charge for each rider, equal to a percentage of the contract value, not to exceed a total charge of 0.75% of the contract value.

19


SBL Variable Annuity Account XVII
Notes to Financial Statements (continued)

3. Summary of Unit Transactions

The changes in units outstanding for the periods December 31, 2020 and 2019, were as follows:

   
2020
     
2019
 
     
Net
     
Net
 
Units
Units
Increase
 
Units
Units
Increase
Subaccount
Issued
Redeemed
(Decrease)
 
Issued
Redeemed
(Decrease)
               
American Century VP Ultra®
           -
           -
          -
 
           -
           -
          -
American Century VP Value
           -
           -
          -
 
           -
           -
          -
Guggenheim VIF All Cap Value
           -
        (79)
        (79)
 
           -
       (444)
       (444)
Guggenheim VIF Alpha Opportunity
           -
           -
          -
 
           -
       (381)
       (381)
Guggenheim VIF High Yield
           -
           -
          -
 
           -
       (389)
       (389)
Guggenheim VIF Large Cap Value
           -
           -
          -
 
           -
       (565)
       (565)
Guggenheim VIF Long Short Equity
           -
       (978)
       (978)
 
           -
           -
          -
Guggenheim VIF Managed Asset Allocation
         408
     (1,766)
     (1,358)
 
       3,492
     (6,211)
     (2,719)
Guggenheim VIF Small Cap Value
           -
        (13)
        (13)
 
           -
       (700)
       (700)
Guggenheim VIF SMid Cap Value
           -
           -
          -
 
           -
       (364)
       (364)
Guggenheim VIF StylePlus Large Growth
           -
           -
          -
 
           -
       (386)
       (386)
Guggenheim VIF StylePlus Small Growth
           -
           -
          -
 
           -
       (625)
       (625)
Guggenheim VIF Total Return Bond
           -
     (1,137)
     (1,137)
 
           -
           -
          -
Guggenheim VIF World Equity Income
           -
           -
          -
 
           -
       (352)
       (352)
Invesco Oppenheimer V.I. Conservative Balanced Fund
         182
       (514)
       (332)
 
         201
     (1,214)
     (1,013)
Invesco Oppenheimer V.I. Main Street Small Cap Fund
           -
           -
          -
 
           -
       (362)
       (362)
Invesco V.I. Equity and Income
         535
     (1,923)
     (1,388)
 
       3,676
     (5,583)
     (1,907)
Invesco V.I. Global Real Estate
           -
        (13)
        (13)
 
           -
        (13)
        (13)
Invesco V.I. Government Money Market(a)
           -
     (1,073)
     (1,073)
 
           -
         (9)
         (9)
Invesco V.I. Mid Cap Core Equity
           -
           -
          -
 
           -
       (373)
       (373)
Invesco V.I. Value Opportunities
           -
           -
          -
 
           -
           -
          -
MFS® VIT Total Return
          75
        (71)
          4
 
          73
        (65)
          8
PIMCO VIT All Asset
         452
     (1,571)
     (1,119)
 
       3,623
     (4,818)
     (1,195)
PIMCO VIT Low Duration
           -
     (1,162)
     (1,162)
 
           -
       (144)
       (144)
PIMCO VIT Real Return
           -
       (987)
       (987)
 
           -
        (80)
        (80)
               
(a) Liquidation.  See Note 1.
             

20

SBL Variable Annuity Account XVII
Notes to Financial Statements (continued)

4. Financial Highlights

The Account has a number of products, which have unique combinations of features and fees that are charged against the contract owner’s account balance.  Differences in the fee structures result in a variety of unit values, expense ratios, and total returns.  The information presented below identifies the range of lowest to highest expense ratios and the corresponding total return. The summary may not reflect the minimum and maximum contract charges offered by the Account as contract owners may not have selected all available and applicable contract options as discussed in Note 2.

A summary of units outstanding, unit values, net assets, expense ratios, investment income ratios and total return ratios for each of the five years in the period ended December 31, 2020, were as follows:

Subaccount
Units
Unit
Values
Lowest
($) (4)
Unit
Values
Highest
($) (4)
Net
Assets ($)
Invest-ment
Income
Ratios
(%) (1)
Expense
Ratios
Lowest
(%) (2)
Expense
Ratios
Highest
(%) (2)
Total
Returns
Lowest
(%) (3)(4)
Total
Returns
Highest
(%) (3)(4)
                   
American Century VP Ultra®
             
2020
        393
    44.81
    44.81
      17,660
      -
   1.95
   1.95
  46.63
  46.63
2019
        393
    30.56
    30.56
      12,043
      -
   1.95
   1.95
  31.84
  31.84
2018
        393
    23.18
    23.18
       9,134
   0.12
   1.95
   1.95
  (1.36)
  (1.36)
2017
        393
    23.50
    23.50
       9,261
   0.23
   1.95
   1.95
  29.41
  29.41
2016
        381
    18.16
    18.16
       6,940
   0.18
   1.95
   1.95
   2.37
   2.37
American Century VP Value
             
2020
        328
    23.13
    23.13
       7,555
   0.02
   1.95
   1.95
  (1.11)
  (1.11)
2019
        328
    23.39
    23.39
       7,642
   1.97
   1.95
   1.95
  24.41
  24.41
2018
        328
    18.80
    18.80
       6,140
   1.59
   1.95
   1.95
 (11.03)
 (11.03)
2017
        328
    21.13
    21.13
       6,904
   1.48
   1.95
   1.95
   6.45
   6.45
2016
        328
    19.85
    19.85
       6,485
   1.55
   1.95
   1.95
  17.94
  17.94
Guggenheim VIF All Cap Value
             
2020
      1,698
    23.16
    23.16
      39,303
   0.02
   1.95
   1.95
  (0.09)
  (0.09)
2019
      1,777
    23.18
    23.18
      41,186
   1.41
   1.95
   1.95
  21.30
  21.30
2018
      2,221
    19.11
    19.11
      42,419
   1.18
   1.95
   1.95
 (12.38)
 (12.38)
2017
      2,353
    21.81
    21.81
      51,305
   1.06
   1.95
   1.95
  12.54
  12.54
2016
      2,420
    19.38
    19.38
      46,872
   1.48
   1.95
   1.95
  20.37
  20.37

21



SBL Variable Annuity Account XVII
Notes to Financial Statements (continued)

4. Financial Highlights (continued)

Subaccount
Units
Unit
Values
Lowest
($) (4)
Unit
Values
Highest
($) (4)
Net
Assets ($)
Invest-ment
Income
Ratios
(%) (1)
Expense
Ratios
Lowest
(%) (2)
Expense
Ratios
Highest
(%) (2)
Total
Returns
Lowest
(%) (3)(4)
Total
Returns
Highest
(%) (3)(4)
Guggenheim VIF Alpha Opportunity
             
2020
        333
    18.81
    18.81
       6,253
   0.01
   1.95
   1.95
  (1.67)
  (1.67)
2019
        333
    19.13
    19.13
       6,360
   0.11
   1.95
   1.95
  (4.35)
  (4.35)
2018
        714
    20.00
    20.00
      14,238
      -
   1.95
   1.95
 (13.31)
 (13.31)
2017
        714
    23.07
    23.07
      16,422
      -
   1.95
   1.95
   5.15
   5.15
2016
        714
    21.94
    21.94
      15,619
      -
   1.95
   1.95
  10.58
  10.58
Guggenheim VIF High Yield
             
2020
        333
    21.42
    21.42
       7,149
   0.07
   1.95
   1.95
   2.59
   2.59
2019
        333
    20.88
    20.88
       6,967
   4.95
   1.95
   1.95
   9.55
   9.55
2018
        722
    19.06
    19.06
      13,787
   7.93
   1.95
   1.95
  (6.02)
  (6.02)
2017
        722
    20.28
    20.28
      14,666
   5.00
   1.95
   1.95
   4.16
   4.16
2016
        722
    19.47
    19.47
      14,078
   8.49
   1.95
   1.95
  15.28
  15.28
Guggenheim VIF Large Cap Value
             
2020
          -
    25.72
    25.72
           -
      -
   1.95
   1.95
   0.23
   0.23
2019
          -
    25.66
    25.66
           -
      -
   1.95
   1.95
  19.40
  19.40
2018
        565
    21.49
    21.49
      12,141
   1.35
   1.95
   1.95
 (11.27)
 (11.27)
2017
        610
    24.22
    24.22
      14,781
   1.24
   1.95
   1.95
  13.55
  13.55
2016
        610
    21.33
    21.33
      13,016
   1.68
   1.95
   1.95
  19.03
  19.03
Guggenheim VIF Long Short Equity
             
2020
         65
    14.35
    14.35
         938
   0.02
   1.95
   1.95
   2.87
   2.87
2019
      1,043
    13.95
    13.95
      14,557
   0.57
   1.95
   1.95
   3.49
   3.49
2018
      1,043
    13.48
    13.48
      14,067
      -
   1.95
   1.95
 (14.68)
 (14.68)
2017
      1,043
    15.80
    15.80
      16,480
   0.35
   1.95
   1.95
  12.62
  12.62
2016
      1,043
    14.03
    14.03
      14,632
      -
   1.95
   1.95
  (1.27)
  (1.27)
Guggenheim VIF Managed Asset Allocation
             
2020
     14,016
    13.88
    21.62
     200,785
   0.01
   1.30
   1.95
   7.76
  10.36
2019
     15,374
    12.88
    19.59
     203,317
   1.71
   1.30
   1.95
  15.10
  17.80
2018
     18,093
    11.19
    16.63
     211,087
   1.46
   1.30
   1.95
  (9.76)
  (7.61)
2017
     18,266
    12.40
    18.00
     235,257
   1.52
   1.30
   1.95
   9.64
  12.22
2016
     18,193
    11.31
    16.04
     213,201
   1.16
   1.30
   1.95
   3.38
   5.87

22


SBL Variable Annuity Account XVII
Notes to Financial Statements (continued)

4. Financial Highlights (continued)

Subaccount
Units
Unit
Values
Lowest
($) (4)
Unit
Values
Highest
($) (4)
Net
Assets ($)
Invest-ment
Income
Ratios
(%) (1)
Expense
Ratios
Lowest
(%) (2)
Expense
Ratios
Highest
(%) (2)
Total
Returns
Lowest
(%) (3)(4)
Total
Returns
Highest
(%) (3)(4)
Guggenheim VIF Small Cap Value
             
2020
        834
    27.79
    27.79
      23,210
   0.01
   1.95
   1.95
  (2.90)
  (2.90)
2019
        847
    28.62
    28.62
      24,295
   0.60
   1.95
   1.95
  20.20
  20.20
2018
      1,547
    23.81
    23.81
      36,880
   0.37
   1.95
   1.95
 (14.38)
 (14.38)
2017
      1,562
    27.81
    27.81
      43,468
   0.37
   1.95
   1.95
   1.68
   1.68
2016
      1,566
    27.35
    27.35
      42,874
   0.11
   1.95
   1.95
  24.15
  24.15
Guggenheim VIF SMid Cap Value
             
2020
        600
    31.60
    31.60
      18,959
   0.01
   1.95
   1.95
   2.27
   2.27
2019
        600
    30.90
    30.90
      18,538
   0.72
   1.95
   1.95
  24.25
  24.25
2018
        964
    24.87
    24.87
      23,975
   0.64
   1.95
   1.95
 (14.68)
 (14.68)
2017
        964
    29.15
    29.15
      28,098
   0.66
   1.95
   1.95
  11.51
  11.51
2016
        955
    26.14
    26.14
      24,962
   0.92
   1.95
   1.95
  24.30
  24.30
Guggenheim VIF StylePlus Large Growth
             
2020
          -
    37.40
    37.40
           -
      -
   1.95
   1.95
  35.16
  35.16
2019
          -
    27.67
    27.67
           -
      -
   1.95
   1.95
  31.32
  31.32
2018
        386
    21.07
    21.07
       8,107
   1.73
   1.95
   1.95
  (5.52)
  (5.52)
2017
        386
    22.30
    22.30
       8,582
   0.99
   1.95
   1.95
  27.57
  27.57
2016
        386
    17.48
    17.48
       6,727
   0.52
   1.95
   1.95
   6.59
   6.59
Guggenheim VIF StylePlus Small Growth
             
2020
          -
    32.51
    32.51
           -
      -
   1.95
   1.95
  29.26
  29.26
2019
          -
    25.15
    25.15
           -
      -
   1.95
   1.95
  23.22
  23.22
2018
        625
    20.41
    20.41
      12,741
   1.12
   1.95
   1.95
 (12.06)
 (12.06)
2017
        625
    23.21
    23.21
      14,488
   0.72
   1.95
   1.95
  20.01
  20.01
2016
        625
    19.34
    19.34
      12,072
   0.38
   1.95
   1.95
  11.21
  11.21
Guggenheim VIF Total Return Bond
             
2020
        412
    14.22
    14.22
       5,845
   0.03
   1.95
   1.95
  11.97
  11.97
2019
      1,549
    12.70
    12.70
      19,661
   2.69
   1.95
   1.95
   2.42
   2.42
2018
      1,549
    12.40
    12.40
      19,191
   4.38
   1.95
   1.95
  (0.80)
  (0.80)
2017
      1,549
    12.50
    12.50
      19,354
   4.29
   1.95
   1.95
   4.60
   4.60
2016
      1,549
    11.95
    11.95
      18,494
   3.99
   1.95
   1.95
   4.73
   4.73


23

SBL Variable Annuity Account XVII
Notes to Financial Statements (continued)

4. Financial Highlights (continued)

Subaccount
Units
Unit
Values
Lowest
($) (4)
Unit
Values
Highest
($) (4)
Net
Assets ($)
Invest-ment
Income
Ratios
(%) (1)
Expense
Ratios
Lowest
(%) (2)
Expense
Ratios
Highest
(%) (2)
Total
Returns
Lowest
(%) (3)(4)
Total
Returns
Highest
(%) (3)(4)
Guggenheim VIF World Equity Income
             
2020
          -
    19.66
    19.66
           -
      -
   1.95
   1.95
   4.57
   4.57
2019
          -
    18.80
    18.80
           -
      -
   1.95
   1.95
  19.06
  19.06
2018
        352
    15.79
    15.79
       5,562
   2.84
   1.95
   1.95
  (9.98)
  (9.98)
2017
        384
    17.54
    17.54
       6,744
   2.77
   1.95
   1.95
  12.80
  12.80
2016
        384
    15.55
    15.55
       5,978
   3.06
   1.95
   1.95
   8.21
   8.21
Invesco Oppenheimer V.I. Conservative Balanced Fund
             
2020
      5,974
     9.00
     9.00
      53,817
   0.02
   1.70
   1.70
   9.62
   9.62
2019
      6,306
     8.21
     8.21
      51,845
   2.37
   1.70
   1.70
  12.16
  12.16
2018
      7,319
     7.32
     7.32
      53,663
   2.05
   1.70
   1.70
  (9.74)
  (9.74)
2017
      7,430
     8.11
     8.11
      60,317
   1.97
   1.70
   1.70
   4.24
   4.24
2016
      7,303
     7.78
     7.78
      56,878
   2.40
   1.70
   1.70
   0.39
   0.39
Invesco Oppenheimer V.I. Main Street Small Cap Fund
             
2020
        319
    33.90
    33.90
      10,787
   0.00
   1.95
   1.95
  17.30
  17.30
2019
        319
    28.90
    28.90
       9,195
      -
   1.95
   1.95
  23.66
  23.66
2018
        681
    23.37
    23.37
      15,907
   0.06
   1.95
   1.95
 (12.27)
 (12.27)
2017
        719
    26.64
    26.64
      19,151
   0.64
   1.95
   1.95
  11.70
  11.70
2016
        719
    23.85
    23.85
      17,145
   0.24
   1.95
   1.95
  15.38
  15.38
Invesco V.I. Equity and Income
             
2020
     17,357
    14.19
    14.19
     246,056
   0.02
   1.45
   1.45
   4.88
   4.88
2019
     18,745
    13.53
    13.53
     253,463
   2.40
   1.45
   1.45
  14.76
  14.76
2018
     20,652
    11.79
    11.79
     243,306
   2.11
   1.45
   1.45
 (13.69)
 (13.69)
2017
     20,793
    13.66
    13.66
     283,782
   1.46
   1.45
   1.45
   5.97
   5.97
2016
     20,694
    12.89
    12.89
     266,578
   1.59
   1.45
   1.45
   9.80
   9.80
Invesco V.I. Global Real Estate
             
2020
        225
    18.45
    18.45
       4,158
   0.05
   1.95
   1.95
 (14.03)
 (14.03)
2019
        238
    21.46
    21.46
       5,125
   4.86
   1.95
   1.95
  20.63
  20.63
2018
        251
    17.79
    17.79
       4,468
   3.96
   1.95
   1.95
  (8.01)
  (8.01)
2017
        265
    19.34
    19.34
       5,126
   2.09
   1.95
   1.95
  10.83
  10.83
2016
        615
    17.45
    17.45
      10,741
   1.64
   1.95
   1.95
   0.06
   0.06


24


SBL Variable Annuity Account XVII
Notes to Financial Statements (continued)

4. Financial Highlights (continued)

Subaccount
Units
Unit
Values
Lowest
($) (4)
Unit
Values
Highest
($) (4)
Net
Assets ($)
Invest-ment
Income
Ratios
(%) (1)
Expense
Ratios
Lowest
(%) (2)
Expense
Ratios
Highest
(%) (2)
Total
Returns
Lowest
(%) (3)(4)
Total
Returns
Highest
(%) (3)(4)
Invesco V.I. Government Money Market (a)
             
2020
        147
     8.47
     9.44
       1,388
   0.00
   1.30
   1.95
  (3.97)
  (1.77)
2019
      1,220
     8.82
     9.61
      11,724
   1.64
   1.30
   1.95
  (2.65)
  (0.31)
2018
      1,229
     9.06
     9.64
      11,857
   1.28
   1.30
   1.95
  (3.00)
  (0.72)
2017
      1,239
     9.34
     9.71
      12,033
   0.31
   1.30
   1.95
  (3.91)
  (1.62)
2016
      1,239
     9.72
     9.87
      12,235
   0.05
   1.30
   1.95
  (2.80)
  (1.30)
Invesco V.I. Mid Cap Core Equity
             
2020
        324
    22.57
    22.57
       7,294
   0.00
   1.95
   1.95
   6.81
   6.81
2019
        324
    21.13
    21.13
       6,829
   0.15
   1.95
   1.95
  22.63
  22.63
2018
        697
    17.23
    17.23
      11,995
   0.12
   1.95
   1.95
 (13.37)
 (13.37)
2017
        697
    19.89
    19.89
      13,840
   0.32
   1.95
   1.95
  12.44
  12.44
2016
        697
    17.69
    17.69
      12,310
      -
   1.95
   1.95
  10.98
  10.98
Invesco V.I. Value Opportunities
             
2020
        323
    16.38
    16.38
       5,317
   0.00
   1.95
   1.95
   3.28
   3.28
2019
        323
    15.86
    15.86
       5,149
      -
   1.95
   1.95
  27.59
  27.59
2018
        323
    12.43
    12.43
       4,035
      -
   1.95
   1.95
 (20.93)
 (20.93)
2017
        323
    15.72
    15.72
       5,103
   0.02
   1.95
   1.95
  14.91
  14.91
2016
        323
    13.68
    13.68
       4,440
   0.07
   1.95
   1.95
  15.64
  15.64
MFS® VIT Total Return
             
2020
      2,461
    13.42
    13.42
      33,025
   0.02
   1.30
   1.30
   4.84
   4.84
2019
      2,457
    12.80
    12.80
      31,441
   2.17
   1.30
   1.30
  15.11
  15.11
2018
      2,449
    11.12
    11.12
      27,233
   2.03
   1.30
   1.30
  (9.89)
  (9.89)
2017
      2,443
    12.34
    12.34
      30,140
   2.19
   1.30
   1.30
   7.30
   7.30
2016
      2,434
    11.50
    11.50
      27,977
   2.70
   1.30
   1.30
   4.26
   4.26

(a) Liquidation.  See Note 1.
                 

25


SBL Variable Annuity Account XVII
Notes to Financial Statements (continued)

4. Financial Highlights (continued)

Subaccount
Units
Unit
Values
Lowest
($) (4)
Unit
Values
Highest
($) (4)
Net
Assets ($)
Invest-ment
Income
Ratios
(%) (1)
Expense
Ratios
Lowest
(%) (2)
Expense
Ratios
Highest
(%) (2)
Total
Returns
Lowest
(%) (3)(4)
Total
Returns
Highest
(%) (3)(4)
PIMCO VIT All Asset
             
2020
     15,244
    10.82
    16.76
     168,299
   0.05
   1.30
   1.95
   3.44
   5.87
2019
     16,363
    10.46
    15.83
     174,351
   3.02
   1.30
   1.95
   7.17
   9.78
2018
     17,558
     9.76
    14.42
     174,271
   3.25
   1.30
   1.95
  (9.38)
  (7.27)
2017
     17,621
    10.77
    15.55
     192,977
   4.74
   1.30
   1.95
   8.68
  11.31
2016
     17,613
     9.91
    13.97
     177,274
   2.63
   1.30
   1.95
   8.19
  10.70
PIMCO VIT Low Duration
             
2020
      2,718
    11.64
    11.64
      31,633
   0.01
   1.95
   1.95
   0.95
   0.95
2019
      3,880
    11.53
    11.53
      44,719
   2.82
   1.95
   1.95
   2.04
   2.04
2018
      4,024
    11.30
    11.30
      45,470
   1.92
   1.95
   1.95
  (1.65)
  (1.65)
2017
      4,264
    11.49
    11.49
      48,966
   1.36
   1.95
   1.95
  (0.61)
  (0.61)
2016
      4,420
    11.56
    11.56
      51,073
   1.49
   1.95
   1.95
  (0.60)
  (0.60)
PIMCO VIT Real Return
             
2020
      2,056
    14.43
    14.43
      29,559
   0.02
   1.95
   1.95
   9.48
   9.48
2019
      3,043
    13.18
    13.18
      39,993
   1.70
   1.95
   1.95
   6.38
   6.38
2018
      3,123
    12.39
    12.39
      38,607
   2.47
   1.95
   1.95
  (4.18)
  (4.18)
2017
      3,278
    12.93
    12.93
      42,270
   2.40
   1.95
   1.95
   1.65
   1.65
2016
      3,340
    12.72
    12.72
      42,374
   2.26
   1.95
   1.95
   3.16
   3.16

(1) These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by the average net assets.  Average net assets is a simple average of net assets and will not reflect offsetting changes in net assets occurring within a year. These ratios exclude those expenses, such as mortality and expense charges, that result in direct reductions in the unit values.  The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccount invests.

(2) These ratios represent the annualized contract expenses of the Account, consisting primarily of administrative, rider and mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to the unit values.  Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund are excluded.  The disclosed range represents the lowest expense ratio to highest expense ratio, respectively.  Certain contractholders may have expenses outside the range depending on the timing of deposits, withdrawals, and/or fund transfers.

(3) These amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and reflect deductions for all items included in the expense ratio.  The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented.  The total return is calculated for the period indicated or from the inception date through the end of the reporting period.
26


SBL Variable Annuity Account XVII
Notes to Financial Statements (continued)

4. Financial Highlights (continued)

(4) Unit value information is calculated on a daily basis regardless of whether or not the subaccount has contractholders.

5. Subsequent Events

The Account has performed an evaluation of subsequent events through the date the financial statements were issued and has determined that no items require recognition or disclosure.

27