Report of Independent Registered Public Accounting Firm
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1
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Audited Financial Statements
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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
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3
4
6
6
8
9
10
11
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Subaccounts
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Statements of operations and changes in net assets
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Guggenheim Large Cap Value
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For each of the two years in the period ended December 31, 2020
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Guggenheim StylePlus Large Core
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For each of the two years in the period ended December 31, 2020
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Guggenheim StylePlus Mid Growth
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For each of the two years in the period ended December 31, 2020
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Guggenheim US Investment Grade Bond
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For each of the two years in the period ended December 31, 2020
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Subaccount
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Number of Shares
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Cost
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Assets at Market Value
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Total Assets
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Uncollected Actuarial Risk Fee Payable
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Net Assets
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Units Outstanding
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Unit Values
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Series B
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24,067
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$ 443,848
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$ 494,102
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$ 494,102
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$ (11)
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$ 494,091
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24,037
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$ 20.53
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Series E
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731,999
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15,895,049
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17,311,769
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17,311,769
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(6,283)
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17,305,486
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731,999
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23.65
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Series I
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145,146
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6,109,685
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6,133,866
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6,133,866
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(2,325)
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6,131,541
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144,980
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42.26
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Series U
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5,212
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219,771
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250,907
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250,907
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(77)
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250,830
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5,204
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48.14
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Series B
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Series E
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Series I
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||||||||||
Net assets as of December 31, 2018
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$
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432,067
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$
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15,581,310
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$
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6,266,765
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||||||
Investment income (loss):
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||||||||||||
Dividend distributions
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9,442
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251,835
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102,468
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|||||||||
Investment Expenses:
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||||||||||||
Mortality and expense risk and administrative charges
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(3,288
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)
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(139,152
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)
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(52,193
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)
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||||||
Net investment income (loss)
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6,154
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112,683
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50,275
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|||||||||
Increase in net assets from operations:
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||||||||||||
Capital gain distributions
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-
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28,097
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392,195
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|||||||||
Realized capital gain (loss) on investments
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1,642
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(74,996
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)
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34,402
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||||||||
Change in unrealized appreciation (depreciation)
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7,056
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4,258,522
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759,449
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|||||||||
Net gain (loss) on investments
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8,698
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4,211,623
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1,186,046
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|||||||||
Net increase in net assets from operations
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14,852
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4,324,306
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1,236,321
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|||||||||
Contract owner transactions:
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||||||||||||
Variable annuity deposits
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15,648
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12,278
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79,317
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|||||||||
Terminations, withdrawals and annuity payments
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(52,671
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)
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(2,361,450
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)
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(729,520
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)
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||||||
Transfers between subaccounts, net
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-
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(26,235
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)
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(44,884
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)
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|||||||
Maintenance charges and mortality adjustments
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1,835
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37,261
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17,562
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|||||||||
Increase (decrease) in net assets from contract transactions
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(35,188
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)
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(2,338,146
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)
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(677,525
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)
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||||||
Total increase (decrease) in net assets
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(20,336
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)
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1,986,160
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558,796
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||||||||
Net assets as of December 31, 2019
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$
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411,731
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$
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17,567,470
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$
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6,825,561
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||||||
Investment income (loss):
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||||||||||||
Dividend distributions
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10,561
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129,630
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178,428
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|||||||||
Investment Expenses:
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||||||||||||
Mortality and expense risk and administrative charges
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(3,560
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)
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(115,666
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)
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(42,498
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)
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||||||
Net investment income (loss)
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7,001
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13,964
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135,930
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|||||||||
Increase in net assets from operations:
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||||||||||||
Capital gain distributions
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10,153
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1,348,970
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233,982
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|||||||||
Realized capital gain (loss) on investments
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1,615
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108,502
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(36,261
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)
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||||||||
Change in unrealized appreciation (depreciation)
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39,608
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1,084,157
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(288,987
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)
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||||||||
Net gain (loss) on investments
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51,376
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2,541,629
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(91,266
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)
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||||||||
Net increase in net assets from operations
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58,377
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2,555,593
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44,664
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|||||||||
Contract owner transactions:
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||||||||||||
Variable annuity deposits
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167
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104,005
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42,778
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|||||||||
Terminations, withdrawals and annuity payments
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(16,351
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)
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(2,776,471
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)
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(785,087
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)
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||||||
Transfers between subaccounts, net
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40,167
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(145,111
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)
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3,625
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||||||||
Maintenance charges and mortality adjustments
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-
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-
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-
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|||||||||
Increase (decrease) in net assets from contract transactions
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23,983
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(2,817,577
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)
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(738,684
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)
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|||||||
Total increase (decrease) in net assets
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82,360
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(261,984
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)
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(694,020
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)
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|||||||
Net assets as of December 31, 2020
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$
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494,091
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$
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17,305,486
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$
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6,131,541
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||||||
Series U
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||||
Net assets as of December 31, 2018
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$
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165,306
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Investment income (loss):
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||||
Dividend distributions
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2,089
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|||
Investment Expenses:
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||||
Mortality and expense risk and administrative charges
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(1,565
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)
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Net investment income (loss)
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524
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|||
Increase in net assets from operations:
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||||
Capital gain distributions
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2,122
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|||
Realized capital gain (loss) on investments
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(1,180
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)
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Change in unrealized appreciation (depreciation)
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48,752
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|||
Net gain (loss) on investments
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49,694
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|||
Net increase in net assets from operations
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50,218
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|||
Contract owner transactions:
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||||
Variable annuity deposits
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-
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|||
Terminations, withdrawals and annuity payments
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(16,585
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)
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Transfers between subaccounts, net
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(3,151
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)
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Maintenance charges and mortality adjustments
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-
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Increase (decrease) in net assets from contract transactions
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(19,736
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)
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Total increase (decrease) in net assets
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30,482
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|||
Net assets as of December 31, 2019
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$
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195,788
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Investment income (loss):
|
||||
Dividend distributions
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915
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|||
Investment Expenses:
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||||
Mortality and expense risk and administrative charges
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(1,571
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)
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Net investment income (loss)
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(656
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)
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Increase in net assets from operations:
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||||
Capital gain distributions
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30,807
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|||
Realized capital gain (loss) on investments
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964
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|||
Change in unrealized appreciation (depreciation)
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28,819
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|||
Net gain (loss) on investments
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60,590
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|||
Net increase in net assets from operations
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59,934
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|||
Contract owner transactions:
|
||||
Variable annuity deposits
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-
|
|||
Terminations, withdrawals and annuity payments
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(6,703
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)
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Transfers between subaccounts, net
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1,811
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|||
Maintenance charges and mortality adjustments
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-
|
|||
Increase (decrease) in net assets from contract transactions
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(4,892
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)
|
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Total increase (decrease) in net assets
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55,042
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|||
Net assets as of December 31, 2020
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$
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250,830
|
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Subaccount/Mutual Fund
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Class
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Investment Adviser
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Sub-Adviser
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Guggenheim Large Cap Value
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A
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Security Investors, LLC
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-
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Guggenheim StylePlus Large Core
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A
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Security Investors, LLC
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-
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Guggenheim StylePlus Mid Growth
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A
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Security Investors, LLC
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-
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Guggenheim US Investment Grade Bond
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A
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Security Investors, LLC
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-
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Four subaccounts are currently offered by the Account, all of which had activity.
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Subaccount
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Cost of Purchases
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Proceeds from Sales
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Series B
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$ 60,974
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$ 19,845
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Series E
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1,586,070
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3,044,323
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Series I
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453,009
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823,291
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Series U
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33,535
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8,291
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Annuity Assets relate to contracts that have matured and are in the payout stage. Such assets are computed on the basis of published mortality tables using assumed interest rates that will provide assets as
prescribed by law. In cases where the payout option selected is life contingent, SBL periodically recalculates the required annuity assets, and any resulting adjustment is either charged or credited to SBL and not to the Account.
The annuity assets for December 31, 2020 by subaccount are as follows:
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Subaccount
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Annuity Assets
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Series B
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$ 8,793
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Series E
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155,449
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Series I
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127,245
|
Mortality and Expense Risk Charge: Mortality and expense risks assumed by SBL are compensated for by a fee equivalent to an annual rate of 0.795% of the net asset
value of each contract, of which 0.675% is for assuming mortality risks and the remainder is for assuming expense risks. During the accumulation period, the mortality and expense risk fee is assessed daily and accrued as a liability to the
contract. The accrued mortality and expense risk fee will be deducted from cash dividends and other cash distributions by the fund to the Account, or to the extent accrued and unpaid, from the value of any accumulation units surrendered by
the owner or participant. The deduction is based on the daily value of the Account, and equivalent to 0.795% on an annual basis. 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.
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2020
|
2019
|
||||||
Net
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Net
|
||||||
Units
|
Units
|
Increase
|
Units
|
Units
|
Increase
|
||
Subaccount
|
Issued
|
Redeemed
|
(Decrease)
|
Issued
|
Redeemed
|
(Decrease)
|
|
Series B
|
3,055
|
(1,000)
|
2,055
|
1,364
|
(2,929)
|
(1,565)
|
|
Series E
|
67,138
|
(132,228)
|
(65,090)
|
14,880
|
(120,217)
|
(105,337)
|
|
Series I
|
10,898
|
(20,604)
|
(9,706)
|
13,294
|
(18,055)
|
(4,761)
|
|
Series U
|
699
|
(177)
|
522
|
133
|
(574)
|
(441)
|
Subaccount
|
Units
|
Unit
Values ($) (4) |
Net
Assets ($) |
Investment
Income Ratios (%) (1) |
Expense
Ratios (%) (2) |
Total
Returns (%) (3)(4) |
Series B
|
||||||
2020
|
24,037
|
20.53
|
494,091
|
0.02
|
0.795
|
9.67
|
2019
|
21,982
|
18.72
|
411,731
|
2.24
|
0.795
|
2.02
|
2018
|
23,547
|
18.35
|
432,067
|
2.47
|
0.795
|
(1.61)
|
2017
|
25,783
|
18.65
|
482,800
|
3.19
|
0.795
|
2.98
|
2016
|
27,597
|
18.11
|
501,326
|
3.48
|
0.795
|
1.34
|
Series E
|
||||||
2020
|
731,999
|
23.65
|
17,305,486
|
0.01
|
0.795
|
7.70
|
2019
|
797,089
|
21.96
|
17,567,470
|
1.52
|
0.795
|
27.60
|
2018
|
902,426
|
17.21
|
15,581,310
|
1.25
|
0.795
|
(24.19)
|
2017
|
843,699
|
22.70
|
19,198,556
|
0.94
|
0.795
|
2.71
|
2016
|
816,657
|
22.10
|
18,058,002
|
0.75
|
0.795
|
9.95
|
Series I
|
||||||
2020
|
144,980
|
42.26
|
6,131,541
|
0.03
|
0.795
|
(4.28)
|
2019
|
154,686
|
44.15
|
6,825,561
|
1.57
|
0.795
|
12.69
|
2018
|
159,447
|
39.18
|
6,266,765
|
0.79
|
0.795
|
(15.40)
|
2017
|
168,587
|
46.31
|
7,823,262
|
1.05
|
0.795
|
6.51
|
2016
|
172,570
|
43.48
|
7,506,303
|
1.39
|
0.795
|
15.67
|
Series U
|
||||||
2020
|
5,204
|
48.14
|
250,830
|
0.00
|
0.795
|
15.20
|
2019
|
4,682
|
41.79
|
195,788
|
1.16
|
0.795
|
29.58
|
2018
|
5,123
|
32.25
|
165,306
|
0.92
|
0.795
|
(27.76)
|
2017
|
4,251
|
44.64
|
189,780
|
0.39
|
0.795
|
9.98
|
2016
|
6,910
|
40.59
|
280,904
|
0.58
|
0.795
|
7.52
|