Protective NY COLI VUL
Financial Statements
Year Ended December 31, 2023
(With Report of Independent Registered Public Accounting Firm Thereon)
Report of Independent Registered Public Accounting Firm
To the Policy Owners of Protective
NY COLI VUL and the Board of Directors of
Protective Life and Annuity Insurance Company:
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of the subaccounts listed in Appendix A that comprise Protective NY COLI VUL (the Separate Account) as of December 31, 2023, the related statements of operations for the year then ended, the statements of changes in net assets for each of the years or periods in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the three-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Separate Account as of December 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the three-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements and financial highlights 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 and financial highlights 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 and financial highlights, 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 and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2023, by correspondence with the underlying mutual funds or their transfer agents; when replies were not received, we performed other auditing procedures. 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 and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
/s/ KPMG LLP
We have served as the auditor of one or more Protective Life and Annuity Insurance Company Separate Accounts since 2019.
Birmingham, Alabama
April 16, 2024
1
Appendix A
The subaccounts that comprise Protective NY COLI VUL were audited according to varying periods as defined in the table below:
| Subaccount | Statement of Assets and Liabilities | Statement of Operations | Statements of Changes in Net Assets |
| American Funds IS International Fund, Class 2 | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
| BlackRock Global Allocation V.I. Fund, Class I | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
| BlackRock High Yield V.I., Class I | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
| DWS Small Cap Index VIP, Class A | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
| Eaton Vance VT Floating-Rate Income, Initial Class | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
| Empower Government Money Market Fund, Investor Class | Not applicable | Not applicable | For the period from September 9, 2022 (commencement of operations) to December 31, 2022 |
| Empower International Index Fund, Investor Class | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
| Empower Real Estate Index Fund, Investor Class | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
| Fidelity VIP Emerging Markets Portfolio, Service Class 2 | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
| Fidelity VIP Extended Market Index Portfolio, Service Class 2 | As of December 31, 2023 | For the year then ended December 31, 2023 | For the period from September 19, 2022 (commencement of operations) to December 31, 2022 and the year then ended December 31, 2023 |
| Fidelity VIP Index 500 Portfolio, Initial Class | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
| MFS International Growth Portfolio, Initial Class | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
2
| PIMCO Global Bond Opportunities Portfolio (Unhedged), Admin Class | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
| PIMCO High Yield Portfolio, Admin Class | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
| PIMCO Low Duration Portfolio, Admin Class | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
| PIMCO Real Return Portfolio, Admin Class | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
| PIMCO Total Return Portfolio, Admin Class | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
| Vanguard VIF Global Bond Index Portfolio | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
| Vanguard VIF Total Bond Market Index Portfolio | As of December 31, 2023 | For the year then ended December 31, 2023 | For each of the years in the two-year period then ended December 31, 2023 |
3
| PROTECTIVE NY COLI VUL | ||||||||||||||
| STATEMENTS OF ASSETS AND LIABILITIES | ||||||||||||||
| AS OF DECEMBER 31, 2023 | ||||||||||||||
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| American Funds IS International Fund, Class 2 | BlackRock Global Allocation V.I. Fund, Class I | BlackRock High Yield V.I., Class I | DWS Small Cap Index VIP, Class A | Eaton Vance VT Floating-Rate Income, Initial Class | Empower International Index Fund, Investor Class | Empower Real Estate Index Fund, Investor Class | ||||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 4,603 | $ | 9,314 | $ | 1,849 | $ | 3,835 | $ | 4,553 | $ | 4,694 | $ | 4,764 | ||||||||||||||
| Receivable from the fund manager | - | - | 10 | - | - | - | - | |||||||||||||||||||||
| Total assets | 4,603 | 9,314 | 1,859 | 3,835 | 4,553 | 4,694 | 4,764 | |||||||||||||||||||||
| NET ASSETS | $ | 4,603 | $ | 9,314 | $ | 1,859 | $ | 3,835 | $ | 4,553 | $ | 4,694 | $ | 4,764 | ||||||||||||||
| Fair value per share (NAV) | $ | 17.41 | $ | 16.31 | $ | 6.84 | $ | 13.63 | $ | 8.65 | $ | 12.35 | $ | 12.00 | ||||||||||||||
| Shares outstanding in the Separate Account | 264 | 571 | 270 | 281 | 526 | 380 | 397 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 4,377 | $ | 8,847 | $ | 1,777 | $ | 3,493 | $ | 4,509 | $ | 4,524 | $ | 4,370 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to financial statements.
4
| PROTECTIVE NY COLI VUL | ||||||||||||||
| STATEMENTS OF ASSETS AND LIABILITIES | ||||||||||||||
| AS OF DECEMBER 31, 2023 | ||||||||||||||
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| Fidelity
VIP Emerging Markets Portfolio, Service Class 2 | Fidelity
VIP Extended Market Index Portfolio, Service Class 2 | Fidelity
VIP Index 500 Portfolio, Initial Class | MFS International Growth Portfolio, Initial Class | PIMCO Global Bond Opportunities Portfolio (Unhedged), Admin Class | PIMCO High Yield Portfolio, Admin Class | PIMCO
Low Duration Portfolio, Admin Class | ||||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 6,420 | $ | 11,209 | $ | 9,084 | $ | 4,551 | $ | 6,368 | $ | 1,858 | $ | 1,785 | ||||||||||||||
| Receivable from the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total assets | 6,420 | 11,209 | 9,084 | 4,551 | 6,368 | 1,858 | 1,785 | |||||||||||||||||||||
| NET ASSETS | $ | 6,420 | $ | 11,209 | $ | 9,084 | $ | 4,551 | $ | 6,368 | $ | 1,858 | $ | 1,785 | ||||||||||||||
| Fair value per share (NAV) | $ | 10.58 | $ | 12.90 | $ | 461.79 | $ | 14.67 | $ | 9.62 | $ | 7.18 | $ | 9.60 | ||||||||||||||
| Shares outstanding in the Separate Account | 607 | 869 | 20 | 310 | 662 | 259 | 186 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 6,150 | $ | 10,301 | $ | 8,192 | $ | 4,454 | $ | 6,123 | $ | 1,776 | $ | 1,760 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to financial statements.
5
| PROTECTIVE NY COLI VUL | ||||||||||||||
| STATEMENTS OF ASSETS AND LIABILITIES | ||||||||||||||
| AS OF DECEMBER 31, 2023 | ||||||||||||||
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| PIMCO Real Return Portfolio, Admin Class | PIMCO Total Return Portfolio, Admin Class | Vanguard VIF Global Bond Index Portfolio | Vanguard VIF Total Bond Market Index Portfolio | |||||||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 1,771 | $ | 10,857 | $ | 2,712 | $ | 2,703 | ||||||||||||||||||||
| Receivable from the fund manager | - | - | - | - | ||||||||||||||||||||||||
| Total assets | 1,771 | 10,857 | 2,712 | 2,703 | ||||||||||||||||||||||||
| NET ASSETS | $ | 1,771 | $ | 10,857 | $ | 2,712 | $ | 2,703 | ||||||||||||||||||||
| Fair value per share (NAV) | $ | 11.57 | $ | 9.18 | $ | 18.60 | $ | 10.63 | ||||||||||||||||||||
| Shares outstanding in the Separate Account | 153 | 1,183 | 146 | 254 | ||||||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 1,751 | $ | 10,535 | $ | 2,590 | $ | 2,589 | ||||||||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Concluded)
See accompanying notes to financial statements.
6
| PROTECTIVE NY COLI VUL | ||||||||||||||
| STATEMENTS OF OPERATIONS | ||||||||||||||
| FOR THE YEAR ENDED DECEMBER 31, 2023 | ||||||||||||||
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| American Funds IS International Fund, Class 2 | BlackRock Global Allocation V.I. Fund, Class I | BlackRock High Yield V.I., Class I | DWS Small Cap Index VIP, Class A | Eaton Vance VT Floating-Rate Income, Initial Class | Empower International Index Fund, Investor Class | Empower Real Estate Index Fund, Investor Class | ||||||||||||||||||||||
| INVESTMENT INCOME: | ||||||||||||||||||||||||||||
| Dividend income | $ | 57 | $ | 209 | $ | 91 | $ | 29 | $ | 286 | $ | 110 | $ | 62 | ||||||||||||||
| TOTAL INVESTMENT INCOME | 57 | 209 | 91 | 29 | 286 | 110 | 62 | |||||||||||||||||||||
| NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||||||||||
| Net realized gain (loss) on redemption of investments | 30 | 42 | (13 | ) | (89 | ) | 1 | 40 | (92 | ) | ||||||||||||||||||
| Capital gain distributions | - | - | - | 63 | - | 98 | 9 | |||||||||||||||||||||
| Net realized gain (loss) on investments | 30 | 42 | (13 | ) | (26 | ) | 1 | 138 | (83 | ) | ||||||||||||||||||
| Change in net unrealized appreciation (depreciation) on investments | 225 | 466 | 72 | 341 | 44 | 170 | 394 | |||||||||||||||||||||
| Net realized and unrealized gain (loss) on investments | 255 | 508 | 59 | 315 | 45 | 308 | 311 | |||||||||||||||||||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 312 | $ | 717 | $ | 150 | $ | 344 | $ | 331 | $ | 418 | $ | 373 | ||||||||||||||
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to financial statements.
7
| PROTECTIVE NY COLI VUL | ||||||||||||||
| STATEMENTS OF OPERATIONS | ||||||||||||||
| FOR THE YEAR ENDED DECEMBER 31, 2023 | ||||||||||||||
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| Fidelity VIP Emerging Markets Portfolio, Service Class 2 | Fidelity VIP Extended Market Index Portfolio, Service Class 2 | Fidelity VIP Index 500 Portfolio, Initial Class | MFS International Growth Portfolio, Initial Class | PIMCO Global Bond Opportunities Portfolio (Unhedged), Admin Class | PIMCO High Yield Portfolio, Admin Class | PIMCO Low Duration Portfolio, Admin Class | ||||||||||||||||||||||
| INVESTMENT INCOME: | ||||||||||||||||||||||||||||
| Dividend income | $ | 125 | $ | 170 | $ | 130 | $ | 47 | $ | 108 | $ | 77 | $ | 50 | ||||||||||||||
| TOTAL INVESTMENT INCOME | 125 | 170 | 130 | 47 | 108 | 77 | 50 | |||||||||||||||||||||
| NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||||||||||
| Net realized gain (loss) on redemption of investments | (161 | ) | (1 | ) | 599 | (24 | ) | (137 | ) | (17 | ) | (6 | ) | |||||||||||||||
| Capital gain distributions | - | - | 70 | 134 | 44 | - | - | |||||||||||||||||||||
| Net realized gain (loss) on investments | (161 | ) | (1 | ) | 669 | 110 | (93 | ) | (17 | ) | (6 | ) | ||||||||||||||||
| Change in net unrealized appreciation (depreciation) on investments | 270 | 908 | 892 | 98 | 245 | 82 | 25 | |||||||||||||||||||||
| Net realized and unrealized gain (loss) on investments | 109 | 907 | 1,561 | 208 | 152 | 65 | 19 | |||||||||||||||||||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 234 | $ | 1,077 | $ | 1,691 | $ | 255 | $ | 260 | $ | 142 | $ | 69 | ||||||||||||||
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to financial statements.
8
| PROTECTIVE NY COLI VUL | ||||||||||||||
| STATEMENTS OF OPERATIONS | ||||||||||||||
| FOR THE YEAR ENDED DECEMBER 31, 2023 | ||||||||||||||
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| PIMCO Real Return Portfolio, Admin Class | PIMCO Total Return Portfolio, Admin Class | Vanguard VIF Global Bond Index Portfolio | Vanguard VIF Total Bond Market Index Portfolio | |||||||||||||||||||||||||
| INVESTMENT INCOME: | ||||||||||||||||||||||||||||
| Dividend income | $ | 42 | $ | 291 | $ | 23 | $ | 29 | ||||||||||||||||||||
| TOTAL INVESTMENT INCOME | 42 | 291 | 23 | 29 | ||||||||||||||||||||||||
| NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||||||||||
| Net realized gain (loss) on redemption of investments | (21 | ) | (182 | ) | (31 | ) | (47 | ) | ||||||||||||||||||||
| Capital gain distributions | - | - | 2 | - | ||||||||||||||||||||||||
| Net realized gain (loss) on investments | (21 | ) | (182 | ) | (29 | ) | (47 | ) | ||||||||||||||||||||
| Change in net unrealized appreciation (depreciation) on investments | 20 | 322 | 122 | 115 | ||||||||||||||||||||||||
| Net realized and unrealized gain (loss) on investments | (1 | ) | 140 | 93 | 68 | |||||||||||||||||||||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 41 | $ | 431 | $ | 116 | $ | 97 | ||||||||||||||||||||
Note: Totals may not appear to foot/crossfoot due to rounding.
(Concluded)
See accompanying notes to financial statements.
9
| PROTECTIVE NY COLI VUL | ||||||||||||||
| STATEMENTS OF CHANGES IN NET ASSETS | ||||||||||||||
| FOR THE YEAR ENDED DECEMBER 31, 2023 | ||||||||||||||
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| American Funds IS International Fund, Class 2 | BlackRock Global Allocation V.I. Fund, Class I | BlackRock High Yield V.I., Class I | DWS Small Cap Index VIP, Class A | Eaton Vance VT Floating-Rate Income, Initial Class | Empower International Index Fund, Investor Class | Empower Real Estate Index Fund, Investor Class | ||||||||||||||||||||||
| INCREASE (DECREASE) IN NET ASSETS: | ||||||||||||||||||||||||||||
| OPERATIONS: | ||||||||||||||||||||||||||||
| Total investment income | $ | 57 | $ | 209 | $ | 91 | $ | 29 | $ | 286 | $ | 110 | $ | 62 | ||||||||||||||
| Net realized gain (loss) on investments | 30 | 42 | (13 | ) | (26 | ) | 1 | 138 | (83 | ) | ||||||||||||||||||
| Change in net unrealized appreciation (depreciation) on investments | 225 | 466 | 72 | 341 | 44 | 170 | 394 | |||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 312 | 717 | 150 | 344 | 331 | 418 | 373 | |||||||||||||||||||||
| POLICY TRANSACTIONS: | ||||||||||||||||||||||||||||
| Policy owners' net payments | 6,840 | 13,680 | 2,736 | 5,472 | 6,840 | 6,840 | 6,840 | |||||||||||||||||||||
| Policy maintenance charges | (2,551 | ) | (5,084 | ) | (1,028 | ) | (1,982 | ) | (2,619 | ) | (2,565 | ) | (2,450 | ) | ||||||||||||||
| Net transfers (to) from the Company and/or Subaccounts | 2 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||||||||||||||||
| Increase (decrease) in net assets resulting from Policy transactions | 4,291 | 8,597 | 1,709 | 3,491 | 4,222 | 4,276 | 4,391 | |||||||||||||||||||||
| Total increase (decrease) in net assets | 4,603 | 9,314 | 1,859 | 3,835 | 4,553 | 4,694 | 4,764 | |||||||||||||||||||||
| NET ASSETS: | ||||||||||||||||||||||||||||
| Beginning of period | - | - | - | - | - | - | - | |||||||||||||||||||||
| End of period | $ | 4,603 | $ | 9,314 | $ | 1,859 | $ | 3,835 | $ | 4,553 | $ | 4,694 | $ | 4,764 | ||||||||||||||
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to financial statements.
10
| PROTECTIVE NY COLI VUL | ||||||||||||||
| STATEMENTS OF CHANGES IN NET ASSETS | ||||||||||||||
| FOR THE YEAR ENDED DECEMBER 31, 2023 | ||||||||||||||
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| Fidelity VIP Emerging Markets Portfolio, Service Class 2 | Fidelity VIP Extended Market Index Portfolio, Service Class 2 | Fidelity VIP Index 500 Portfolio, Initial Class | MFS International Growth Portfolio, Initial Class | PIMCO Global Bond Opportunities Portfolio (Unhedged), Admin Class | PIMCO High Yield Portfolio, Admin Class | PIMCO Low Duration Portfolio, Admin Class | ||||||||||||||||||||||
| INCREASE (DECREASE) IN NET ASSETS: | ||||||||||||||||||||||||||||
| OPERATIONS: | ||||||||||||||||||||||||||||
| Total investment income | $ | 125 | $ | 170 | $ | 130 | $ | 47 | $ | 108 | $ | 77 | $ | 50 | ||||||||||||||
| Net realized gain (loss) on investments | (161 | ) | (1 | ) | 669 | 110 | (93 | ) | (17 | ) | (6 | ) | ||||||||||||||||
| Change in net unrealized appreciation (depreciation) on investments | 270 | 908 | 892 | 98 | 245 | 82 | 25 | |||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 234 | 1,077 | 1,691 | 255 | 260 | 142 | 69 | |||||||||||||||||||||
| POLICY TRANSACTIONS: | ||||||||||||||||||||||||||||
| Policy owners' net payments | 9,576 | 12,400 | 16,329 | 6,840 | 9,576 | 2,736 | 2,736 | |||||||||||||||||||||
| Policy maintenance charges | (3,390 | ) | (2,267 | ) | (8,937 | ) | (2,544 | ) | (3,468 | ) | (1,020 | ) | (1,020 | ) | ||||||||||||||
| Net transfers (to) from the Company and/or Subaccounts | - | (1 | ) | 1 | - | - | - | - | ||||||||||||||||||||
| Increase (decrease) in net assets resulting from Policy transactions | 6,186 | 10,132 | 7,393 | 4,296 | 6,108 | 1,716 | 1,716 | |||||||||||||||||||||
| Total increase (decrease) in net assets | 6,420 | 11,209 | 9,084 | 4,551 | 6,368 | 1,858 | 1,785 | |||||||||||||||||||||
| NET ASSETS: | ||||||||||||||||||||||||||||
| Beginning of period | - | - | - | - | - | - | - | |||||||||||||||||||||
| End of period | $ | 6,420 | $ | 11,209 | $ | 9,084 | $ | 4,551 | $ | 6,368 | $ | 1,858 | $ | 1,785 | ||||||||||||||
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to financial statements.
11
| PROTECTIVE NY COLI VUL | ||||||||||||||
| STATEMENTS OF CHANGES IN NET ASSETS | ||||||||||||||
| FOR THE YEAR ENDED DECEMBER 31, 2023 | ||||||||||||||
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| PIMCO Real Return Portfolio, Admin Class | PIMCO Total Return Portfolio, Admin Class | Vanguard VIF Global Bond Index Portfolio | Vanguard VIF Total Bond Market Index Portfolio | |||||||||||||||||||||||||
| INCREASE (DECREASE) IN NET ASSETS: | ||||||||||||||||||||||||||||
| OPERATIONS: | ||||||||||||||||||||||||||||
| Total investment income | $ | 42 | $ | 291 | $ | 23 | $ | 29 | ||||||||||||||||||||
| Net realized gain (loss) on investments | (21 | ) | (182 | ) | (29 | ) | (47 | ) | ||||||||||||||||||||
| Change in net unrealized appreciation (depreciation) on investments | 20 | 322 | 122 | 115 | ||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 41 | 431 | 116 | 97 | ||||||||||||||||||||||||
| POLICY TRANSACTIONS: | ||||||||||||||||||||||||||||
| Policy owners' net payments | 2,736 | 16,416 | 4,104 | 4,104 | ||||||||||||||||||||||||
| Policy maintenance charges | (1,006 | ) | (5,990 | ) | (1,508 | ) | (1,497 | ) | ||||||||||||||||||||
| Net transfers (to) from the Company and/or Subaccounts | - | - | - | (1 | ) | |||||||||||||||||||||||
| Increase (decrease) in net assets resulting from Policy transactions | 1,730 | 10,426 | 2,596 | 2,606 | ||||||||||||||||||||||||
| Total increase (decrease) in net assets | 1,771 | 10,857 | 2,712 | 2,703 | ||||||||||||||||||||||||
| NET ASSETS: | ||||||||||||||||||||||||||||
| Beginning of period | - | - | - | - | ||||||||||||||||||||||||
| End of period | $ | 1,771 | $ | 10,857 | $ | 2,712 | $ | 2,703 | ||||||||||||||||||||
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to financial statements.
12
| PROTECTIVE NY COLI VUL | ||||||||||||||
| STATEMENTS OF CHANGES IN NET ASSETS | ||||||||||||||
| FOR THE YEAR ENDED DECEMBER 31, 2022 | ||||||||||||||
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| American Funds IS International Fund, Class 2 | BlackRock Global Allocation V.I. Fund, Class I | BlackRock High Yield V.I., Class I | DWS Small Cap Index VIP, Class A | Eaton Vance VT Floating-Rate Income, Initial Class | Empower Government Money Market Fund, Investor Class | Empower International Index Fund, Investor Class | ||||||||||||||||||||||
| INCREASE (DECREASE) IN NET ASSETS: | ||||||||||||||||||||||||||||
| OPERATIONS: | ||||||||||||||||||||||||||||
| Total investment income | $ | 4 | $ | - | $ | 7 | $ | 2 | $ | 14 | $ | - | $ | 2 | ||||||||||||||
| Net realized gain (loss) on investments | (85 | ) | (98 | ) | (18 | ) | (22 | ) | (26 | ) | - | (74 | ) | |||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (81 | ) | (98 | ) | (11 | ) | (20 | ) | (12 | ) | - | (72 | ) | |||||||||||||||
| POLICY TRANSACTIONS: | ||||||||||||||||||||||||||||
| Policy owners' net payments | 1,063 | 2,127 | 425 | 851 | 1,063 | 383 | 1,063 | |||||||||||||||||||||
| Policy maintenance charges | (981 | ) | (2,027 | ) | (413 | ) | (829 | ) | (1,051 | ) | - | (990 | ) | |||||||||||||||
| Net transfers (to) from the Company and/or Subaccounts | (1 | ) | (2 | ) | (1 | ) | (2 | ) | - | (383 | ) | (1 | ) | |||||||||||||||
| Increase (decrease) in net assets resulting from Policy transactions | 81 | 98 | 11 | 20 | 12 | - | 72 | |||||||||||||||||||||
| Total increase (decrease) in net assets | - | - | - | - | - | - | - | |||||||||||||||||||||
| NET ASSETS: | ||||||||||||||||||||||||||||
| Beginning of period | - | - | - | - | - | - | - | |||||||||||||||||||||
| End of period | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to financial statements.
13
| PROTECTIVE NY COLI VUL | ||||||||||||||
| STATEMENTS OF CHANGES IN NET ASSETS | ||||||||||||||
| FOR THE YEAR ENDED DECEMBER 31, 2022 | ||||||||||||||
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| Empower Real Estate Index Fund, Investor Class | Fidelity VIP Emerging Markets Portfolio, Service Class 2 | Fidelity VIP Extended Market Index Portfolio, Service Class 2 | Fidelity VIP Index 500 Portfolio, Initial Class | MFS International Growth Portfolio, Initial Class | PIMCO Global Bond Opportunities Portfolio (Unhedged), Admin Class | PIMCO High Yield Portfolio, Admin Class | ||||||||||||||||||||||
| INCREASE (DECREASE) IN NET ASSETS: | ||||||||||||||||||||||||||||
| OPERATIONS: | ||||||||||||||||||||||||||||
| Total investment income | $ | 6 | $ | 2 | $ | 1 | $ | 6 | $ | 3 | $ | 6 | $ | 6 | ||||||||||||||
| Net realized gain (loss) on investments | (90 | ) | (125 | ) | (8 | ) | (144 | ) | (61 | ) | (87 | ) | (18 | ) | ||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (84 | ) | (123 | ) | (7 | ) | (138 | ) | (58 | ) | (81 | ) | (12 | ) | ||||||||||||||
| POLICY TRANSACTIONS: | ||||||||||||||||||||||||||||
| Policy owners' net payments | 1,063 | 1,489 | 667 | 3,799 | 1,063 | 1,489 | 425 | |||||||||||||||||||||
| Policy maintenance charges | (979 | ) | (1,363 | ) | (646 | ) | (3,654 | ) | (1,004 | ) | (1,409 | ) | (413 | ) | ||||||||||||||
| Net transfers (to) from the Company and/or Subaccounts | - | (3 | ) | (14 | ) | (8 | ) | (1 | ) | 1 | - | |||||||||||||||||
| Increase (decrease) in net assets resulting from Policy transactions | 84 | 123 | 7 | 137 | 58 | 81 | 12 | |||||||||||||||||||||
| Total increase (decrease) in net assets | - | - | - | (1 | ) | - | - | - | ||||||||||||||||||||
| NET ASSETS: | ||||||||||||||||||||||||||||
| Beginning of period | - | - | - | 1 | - | - | - | |||||||||||||||||||||
| End of period | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to financial statements.
14
| PROTECTIVE NY COLI VUL | ||||||||||||||
| STATEMENTS OF CHANGES IN NET ASSETS | ||||||||||||||
| FOR THE YEAR ENDED DECEMBER 31, 2022 | ||||||||||||||
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| PIMCO Low Duration Portfolio, Admin Class | PIMCO Real Return Portfolio, Admin Class | PIMCO Total Return Portfolio, Admin Class | Vanguard VIF Global Bond Index Portfolio | Vanguard VIF Total Bond Market Index Portfolio | ||||||||||||||||||||||||
| INCREASE (DECREASE) IN NET ASSETS: | ||||||||||||||||||||||||||||
| OPERATIONS: | ||||||||||||||||||||||||||||
| Total investment income | $ | 2 | $ | 10 | $ | 18 | $ | 4 | $ | 3 | ||||||||||||||||||
| Net realized gain (loss) on investments | (11 | ) | (24 | ) | (141 | ) | (30 | ) | (29 | ) | ||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (9 | ) | (14 | ) | (123 | ) | (26 | ) | (26 | ) | ||||||||||||||||||
| POLICY TRANSACTIONS: | ||||||||||||||||||||||||||||
| Policy owners' net payments | 425 | 425 | 2,552 | 638 | 638 | |||||||||||||||||||||||
| Policy maintenance charges | (417 | ) | (411 | ) | (2,431 | ) | (612 | ) | (611 | ) | ||||||||||||||||||
| Net transfers (to) from the Company and/or Subaccounts | 1 | - | 2 | - | (1 | ) | ||||||||||||||||||||||
| Increase (decrease) in net assets resulting from Policy transactions | 9 | 14 | 123 | 26 | 26 | |||||||||||||||||||||||
| Total increase (decrease) in net assets | - | - | - | - | - | |||||||||||||||||||||||
| NET ASSETS: | ||||||||||||||||||||||||||||
| Beginning of period | - | - | - | - | - | |||||||||||||||||||||||
| End of period | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
Note: Totals may not appear to foot/crossfoot due to rounding.
(Concluded)
See accompanying notes to financial statements.
15
PROTECTIVE NY COLI VUL
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
| 1. | ORGANIZATION |
The Protective NY COLI VUL (the “Separate Account”), a segregated unit investment trust registered under the Investment Company Act of 1940, as amended, was established by Protective Life and Annuity Insurance Company (“PLAIC” or the “Company”) on December 17, 2021 and exists in accordance with the regulations of the New York State Department of Financial Services. The Company is a wholly owned subsidiary of Protective Life Insurance Company ("PLICO"). PLICO is a wholly owned subsidiary of Protective Life Corporation ("PLC"). PLC is a wholly owned subsidiary of Dai-ichi Life International Holding, LLC, a godo kaisha organized under the laws of Japan.
Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from the Company’s other assets and liabilities. The portion of the Separate Account's assets applicable to the variable life policies (the “Policies”) is not chargeable with liabilities arising out of any other business the Company may conduct.
The Separate Account is a funding vehicle for individual variable life insurance Policies; it consists of a number of subaccounts (the “Subaccounts”), also commonly referred to as investment divisions or funds, each of which is treated as an individual accounting entity for financial reporting purposes. The Separate Account's value at any time is allocated among Policy owners based on the number and value of their accumulation units representing their interest in the Separate Account; all of the investible assets of the Separate Account are invested in the corresponding mutual funds.
Policy owners may allocate some or all of the applicable net payments or transfer some or all of the Policy value to the Company’s guaranteed account, which is not included in these financial statements. The assets of the Company support its insurance and annuity obligations and are subject to the Company's general liabilities from business operations.
Policy owners' net payments are allocated to the Subaccounts in accordance with Policy owner instructions and are recorded as Policy owners’ net payments in the Statements of Changes in Net Assets. Such amounts are used to provide account funds to pay Policy values under the Policies.
The following is the variable life insurance product funded by the Separate Account:
Protective Executive Benefits Registered VUL NY
For the years or periods ended December 31, 2023 and 2022, the Separate Account was invested in up to 19 Subaccounts, as follows:
American Funds IS International Fund, Class 2
BlackRock Global Allocation V.I. Fund, Class I
BlackRock High Yield V.I., Class I
DWS Small Cap Index VIP, Class A
Eaton Vance VT Floating-Rate Income, Initial Class
Empower Government Money Market Fund, Investor Class (a)
Empower International Index Fund, Investor Class (a)
Empower Real Estate Index Fund, Investor Class (a)
Fidelity VIP Emerging Markets Portfolio, Service Class 2
Fidelity VIP Extended Market Index Portfolio, Service Class 2 (a)
Fidelity VIP Index 500 Portfolio, Initial Class
MFS International Growth Portfolio, Initial Class
PIMCO Global Bond Opportunities Portfolio (Unhedged), Admin Class
16
PIMCO High Yield Portfolio, Admin Class
PIMCO Low Duration Portfolio, Admin Class
PIMCO Real Return Portfolio, Admin Class
PIMCO Total Return Portfolio, Admin Class
Vanguard VIF Global Bond Index Portfolio
Vanguard VIF Total Bond Market Index Portfolio
(a) See Subaccount Changes tables below
Subaccount Changes:
During 2022, the following Subaccounts changed their names:
| Previous Name | New Name | Date of Change |
| Great-West International Index Fund Inv | Empower International Index Fund, Investor Class | August 1, 2022 |
| Great-West Real Estate Index Fund Inv | Empower Real Estate Index Fund, Investor Class | August 1, 2022 |
During 2022, the following Subaccounts were opened:
| Subaccount Name | Date of Commencement |
| Empower Government Money Market Fund, Investor Class | September 9, 2022 |
| Fidelity VIP Extended Market Index Portfolio, Service Class 2 | September 19, 2022 |
Certain Subaccounts that had no investments balances as of December 31, 2023 or that did not have activity during the year ended December 31, 2023 are not presented on the Statement of Assets and Liabilities as of December 31, 2023 or Statements of Operations or Statements of Changes in Net Assets for the year ended December 31, 2023, respectively.
The Separate Account is an investment company and, therefore, applies specialized accounting guidance in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 "Financial Services — Investment Companies".
17
| 2. | SIGNIFICANT ACCOUNTING POLICIES |
The following is a summary of the significant accounting policies of the Separate Account.
Investment valuation
Investments are made and measured in shares and are presented net of management fees and other operating expenses incurred by the Subaccounts. The investments are valued at the net asset values of the mutual funds, which value their investment securities at fair value. Transactions with the mutual funds are recognized on the trade date.
The Separate Account classifies its valuations into three levels based upon the observability of inputs to the valuation of the Separate Account’s investments. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:
Level 1 – Unadjusted quoted prices for identical securities in active markets.
Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. These may include quoted prices for similar assets in active markets.
Level 3 – Unobservable inputs to the extent observable inputs are not available and may include prices obtained from single broker quotes. Unobservable inputs reflect the reporting entity’s own assumptions and would be based on the best information available under the circumstances.
The Separate Account determines the fair values of certain financial assets based on quoted market prices. All of the investments in the Subaccounts of the Separate Account are classified as Level 1 in the fair value hierarchy and consist of open-ended mutual funds. Participants may, without restriction, transact at the daily net asset value (“NAV”) of the mutual funds. The NAV represents the daily per share value based on the fair value of the underlying portfolio of investments of the respective Subaccounts.
Receivables and payables from (to) the Policies and the fund manager
Receivables and payables from (to) the Policies and the fund manager include trading activity initiated at the Policy level from the last business day of the year that has not yet been settled with the fund manager.
Receivables and payables from (to) the Company
Receivables and payables from (to) the Company include accruals for pending claims payouts and accruals for the variance between investments and reserves applicable to the Subaccount.
Dividend income and capital gain distributions
Dividend income and capital gain distributions are recorded on the ex-dividend date and are reinvested in additional shares of the mutual funds. Ordinary dividend and capital gain distributions are recognized within net investment income and net realized gains, respectively, as recorded in the financial statements of the Subaccounts.
Net realized gains and losses
Net realized gains and losses on investments include gains and losses on redemptions of the Subaccounts’ shares (determined for each product using the first-in-first-out (FIFO) basis) and capital gain distributions from the mutual funds.
Net transfers (to) from the Company and/or Subaccounts
Net transfers (to) from the Company and/or Subaccounts include transfers between the Subaccounts of the Separate Account as well as transfers between the Separate Account and the Company.
18
Federal income taxes
The results of the operations of the Separate Account are included in the federal income tax return of the Company. Under the provisions of the Policies, the Company has the right to charge the Separate Account for federal income tax attributable to the Separate Account. No charge has been made against the Separate Account for such tax during the year ended December 31, 2023. Management will periodically review the application of this policy in the event of changes in tax law. Accordingly, a change may be made in future years to consider charges for any federal income taxes that would be attributable to the Policies.
Use of estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that could affect the reported amounts of assets and liabilities, as well as the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from the estimates reported in the accompanying financial statements.
Risks and uncertainties
The Separate Account provides for various investment options in any combination of Subaccounts, each of which bears exposure to the market, credit, and liquidity risks of the underlying portfolio in which it invests. Due to the level of risk associated with certain investments and the level of uncertainty related to changes in the value of investments, it is at least reasonably possible that changes in risks in the near term could materially affect investment balances, the amounts reported in the statements of assets and liabilities, of operations and of changes in net assets. Accordingly, these financial statements should be read in conjunction with the financial statements and footnotes of the underlying Subaccounts identified in Note 1.
19
| 3. | PURCHASES AND SALES OF INVESTMENTS |
| The cost of purchases and proceeds from sales of investments for the year ended December 31, 2023 were as follows: |
| Subaccount | Purchases | Sales | ||||||
| American Funds IS International Fund, Class 2 | $ | 6,806 | $ | 2,459 | ||||
| BlackRock Global Allocation V.I. Fund, Class I | 13,707 | 4,901 | ||||||
| BlackRock High Yield V.I., Class I | 2,780 | 991 | ||||||
| DWS Small Cap Index VIP, Class A | 5,491 | 1,908 | ||||||
| Eaton Vance VT Floating-Rate Income, Initial Class | 7,035 | 2,527 | ||||||
| Empower International Index Fund, Investor Class | 6,958 | 2,474 | ||||||
| Empower Real Estate Index Fund, Investor Class | 6,820 | 2,358 | ||||||
| Fidelity VIP Emerging Markets Portfolio, Service Class 2 | 9,573 | 3,262 | ||||||
| Fidelity VIP Extended Market Index Portfolio, Service Class 2 | 12,556 | 2,254 | ||||||
| Fidelity VIP Index 500 Portfolio, Initial Class | 16,158 | 8,566 | ||||||
| MFS International Growth Portfolio, Initial Class | 6,930 | 2,453 | ||||||
| PIMCO Global Bond Opportunities Portfolio (Unhedged), Admin Class | 9,600 | 3,340 | ||||||
| PIMCO High Yield Portfolio, Admin Class | 2,777 | 984 | ||||||
| PIMCO Low Duration Portfolio, Admin Class | 2,750 | 983 | ||||||
| PIMCO Real Return Portfolio, Admin Class | 2,741 | 969 | ||||||
| PIMCO Total Return Portfolio, Admin Class | 16,488 | 5,771 | ||||||
| Vanguard VIF Global Bond Index Portfolio | 4,074 | 1,453 | ||||||
| Vanguard VIF Total Bond Market Index Portfolio | 4,078 | 1,443 | ||||||
20
| 4. | CHANGES IN UNITS OUTSTANDING |
| The changes in units outstanding for the years or periods ended December 31, 2023 and 2022 were as follows: |
| 2023 | 2022 | |||||||||||||||||||||||
| Subaccount | Units Issued | Units
Redeemed | Net
Increase (Decrease) | Units Issued | Units Redeemed | Net
Increase (Decrease) | ||||||||||||||||||
| American Funds IS International Fund, Class 2 | 766 | 277 | 489 | 100 | 100 | - | ||||||||||||||||||
| BlackRock Global Allocation V.I. Fund, Class I | 1,400 | 504 | 896 | 180 | 180 | - | ||||||||||||||||||
| BlackRock High Yield V.I., Class I | 270 | 98 | 172 | 36 | 36 | - | ||||||||||||||||||
| DWS Small Cap Index VIP, Class A | 537 | 191 | 346 | 70 | 70 | - | ||||||||||||||||||
| Eaton Vance VT Floating-Rate Income, Initial Class | 639 | 235 | 404 | 87 | 87 | - | ||||||||||||||||||
| Empower Government Money Market Fund, Investor Class | - | - | - | 38 | 38 | - | ||||||||||||||||||
| Empower International Index Fund, Investor Class | 645 | 233 | 412 | 87 | 87 | - | ||||||||||||||||||
| Empower Real Estate Index Fund, Investor Class | 609 | 215 | 394 | 70 | 70 | - | ||||||||||||||||||
| Fidelity VIP Emerging Markets Portfolio, Service Class 2 | 1,110 | 386 | 724 | 141 | 141 | - | ||||||||||||||||||
| Fidelity VIP Extended Market Index Portfolio, Service Class 2 | 1,249 | 227 | 1,022 | 39 | 39 | - | ||||||||||||||||||
| Fidelity VIP Index 500 Portfolio, Initial Class | 1,572 | 805 | 767 | 331 | 331 | - | ||||||||||||||||||
| MFS International Growth Portfolio, Initial Class | 653 | 237 | 416 | 90 | 90 | - | ||||||||||||||||||
| PIMCO Global Bond Opportunities Portfolio (Unhedged), Admin Class | 1,083 | 384 | 699 | 136 | 136 | - | ||||||||||||||||||
| PIMCO High Yield Portfolio, Admin Class | 277 | 100 | 177 | 37 | 37 | - | ||||||||||||||||||
| PIMCO Low Duration Portfolio, Admin Class | 285 | 103 | 182 | 37 | 37 | - | ||||||||||||||||||
| PIMCO Real Return Portfolio, Admin Class | 283 | 102 | 181 | 35 | 35 | - | ||||||||||||||||||
| PIMCO Total Return Portfolio, Admin Class | 1,873 | 668 | 1,205 | 232 | 232 | - | ||||||||||||||||||
| Vanguard VIF Global Bond Index Portfolio | 453 | 162 | 291 | 57 | 57 | - | ||||||||||||||||||
| Vanguard VIF Total Bond Market Index Portfolio | 455 | 162 | 293 | 57 | 57 | - | ||||||||||||||||||
Note: Units may not foot/crossfoot due to rounding.
21
| 5. | EXPENSES AND RELATED PARTY TRANSACTIONS |
The charges below are the current expenses deducted by Subaccount from the Policy as a redemption of units. Charges may vary based on factors such as face amount, gender, age at issue of the insured, age at issue of the joint insured, insurance rate classification and smoking status, death benefit option selected, insured's age at time of face increase, and/or age of the Policy. The charges are recorded, as applicable, to the respective Subaccount in the Separate Account. Redemption of units deductions are made to the individual Policies in accordance with the terms which govern each life insurance policy, as set forth in the Policy.
| Expense Type | Range |
| Policy Expense Charge | |
| This charge is assessed to reimburse the Company for sales expenses, underwriting and issue expenses, and the average premium tax expense incurred when issuing Policies. The charge is assessed on each premium payment received; this deduction in turn reduces Policy owners' net payments on the Statements of Changes in Net Assets. | 6.0% - 10.0% of each premium payment |
| Monthly Standard Administrative Charge | |
| This charge is assessed to reimburse the Company for expenses incurred in the administration of the Policy and the Separate Account. The charge is deducted monthly, assessed through a redemption of units, and recorded as Policy maintenance charges within the Statements of Changes in Net Assets. | not more than $10 per month |
| Mortality and Expense Risk Charge | |
| This charge is assessed to reimburse the Company for assuming mortality and expense risks. The charge is deducted monthly, assessed through a redemption of units, and recorded as Policy maintenance charges in the Statements of Changes in Net Assets. | a monthly charge amounting to a per annum aggregate of not more than 0.90% of the average daily net assets of the Subaccounts |
| Transfer Charge | |
| Currently there is no charge assessed for transfers; however, the Company has reserved the right to charge for transfers as reimbursement for costs incurred when transferring funds. The charge is deducted upon transfer, assessed through a redemption of units, and recorded as Policy maintenance charges within the Statements of Changes in Net Assets. | $10 per transfer after the first 12 transfers in any Policy year |
| Withdrawal Charge | |
| This charge is assessed to reimburse the Company for costs incurred from withdrawals. The charge is deducted annually, assessed through a redemption of units, and recorded as Policy maintenance charges within the Statements of Changes in Net Assets. | $25 for any Policy year that had two or more partial withdrawals |
22
|
Expense Type
|
Range |
| Charge for Optional Benefits | |
| This charge is assessed to reimburse the Company for costs and risks stemming from optional term insurance benefits elected by the Policy owner. The charge is deducted monthly, assessed through a redemption of units, and recorded as Policy maintenance charges within the Statements of Changes in Net Assets. | $0.01 - $83.33 per $1,000 of net amount at risk |
| Cost of Insurance Charge (COI) | |
| This charge is assessed to reimburse the Company for the cost of providing the death benefit. The charge is assessed on the Policy's monthly anniversary day, assessed through a redemption of units, and recorded as Policy maintenance charges within the Statements of Changes in Net Assets. | $0.01 - $83.33 per $1,000 of net amount at risk per month |
| Charge for Change of Insured Endorsement | |
| This charge is assessed to reimburse the Company for costs incurred from a change of insured endorsement. The charge is deducted upon each change request, assessed through a redemption of units, and recorded as Policy maintenance charges within the Statements of Changes in Net Assets. | $400 per change |
| Loan Interest Rate Spread | |
| The loan interest rate spread is the difference between the amount of interest charged on outstanding loan balances and the amount of interest credited to amounts held in the guaranteed account that secures the loans. If applicable, the deduction is withdrawn annually, assessed through a redemption of units, and recorded as net Policy loan repayments (withdrawals) within the Statements of Changes in Net Assets. | not more than 1.50% of the loan balance |
The Company offers a loan privilege to certain Policy owners. Such Policy owners may obtain loans using the Policy’s value as the only security for the loan. Loans are subject to provisions of The Internal Revenue Code of 1986, as amended.
23
| 6. | FINANCIAL HIGHLIGHTS |
| The Company sells one variable life product that is funded by the Separate Account. A summary of the units outstanding, unit fair values, net assets for variable Policies, investment income ratios, the expense ratios, excluding expenses of the underlying Subaccounts, and total returns for each of the three years or periods ended December 31, 2023 is as follows: |
| As of December 31 | For the period ended December 31 | |||||||||||||||||||
| Subaccount | Units (000's) | Unit Fair Value | Net Assets (000's) | Investment Income Ratio (a) | Total Return (b) | |||||||||||||||
| American Funds IS International Fund, Class 2 | ||||||||||||||||||||
| 2023 | 0 | * | $ | 9.42 | $ | 5 | 1.61 | % | 8.11 | % | ||||||||||
| 2022 | - | - | - | 0.00 | % | (21.62 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
| BlackRock Global Allocation V.I. Fund, Class I | ||||||||||||||||||||
| 2023 | 1 | 10.40 | 9 | 2.92 | % | 8.07 | % | |||||||||||||
| 2022 | - | - | - | 0.00 | % | (16.60 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
| BlackRock High Yield V.I., Class I | ||||||||||||||||||||
| 2023 | 0 | * | 10.78 | 2 | 6.33 | % | 8.87 | % | ||||||||||||
| 2022 | - | - | - | 0.00 | % | (10.28 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
| DWS Small Cap Index VIP, Class A | ||||||||||||||||||||
| 2023 | 0 | * | 11.09 | 4 | 1.04 | % | 9.11 | % | ||||||||||||
| 2022 | - | - | - | 0.00 | % | (22.40 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
| Eaton Vance VT Floating-Rate Income, Initial Class | ||||||||||||||||||||
| 2023 | 0 | * | 11.27 | 5 | 7.90 | % | 9.15 | % | ||||||||||||
| 2022 | - | - | - | 0.00 | % | (2.79 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
| Empower Government Money Market Fund, Investor Class | ||||||||||||||||||||
| 2022 | - | - | - | 0.00 | % | 0.84 | % | |||||||||||||
| Empower International Index Fund, Investor Class | ||||||||||||||||||||
| 2023 | 0 | * | 11.41 | 5 | 3.07 | % | 9.53 | % | ||||||||||||
| 2022 | - | - | - | 0.00 | % | (15.36 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
| Empower Real Estate Index Fund, Investor Class | ||||||||||||||||||||
| 2023 | 0 | * | 12.09 | 5 | 1.77 | % | 6.32 | % | ||||||||||||
| 2022 | - | - | - | 0.00 | % | (27.49 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
24
| As of December 31 | For the period ended December 31 | |||||||||||||||||||
| Subaccount | Units (000's) | Unit Fair Value | Net Assets (000's) | Investment Income Ratio (a) | Total Return (b) | |||||||||||||||
| Fidelity VIP Emerging Markets Portfolio, Service Class 2 | ||||||||||||||||||||
| 2023 | 1 | $ | 8.87 | $ | 6 | 2.55 | % | 0.52 | % | |||||||||||
| 2022 | - | - | - | 0.00 | % | (20.61 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
| Fidelity VIP Extended Market Index Portfolio, Service Class 2 | ||||||||||||||||||||
| 2023 | 1 | 10.97 | 11 | 2.79 | % | 9.76 | % | |||||||||||||
| 2022 | - | - | - | 0.00 | % | (3.39 | )% | |||||||||||||
| Fidelity VIP Index 500 Portfolio, Initial Class | ||||||||||||||||||||
| 2023 | 1 | 11.84 | 9 | 1.40 | % | 21.33 | % | |||||||||||||
| 2022 | - | - | - | 0.00 | % | (19.43 | )% | |||||||||||||
| 2021 | - | 11.47 | 0 | * | 1.21 | % | 3.18 | % | ||||||||||||
| MFS International Growth Portfolio, Initial Class | ||||||||||||||||||||
| 2023 | 0 | * | 10.93 | 5 | 1.32 | % | 6.65 | % | ||||||||||||
| 2022 | - | - | - | 0.00 | % | (15.40 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
| PIMCO Global Bond Opportunities Portfolio (Unhedged), Admin Class | ||||||||||||||||||||
| 2023 | 1 | 9.10 | 6 | 2.19 | % | 2.48 | % | |||||||||||||
| 2022 | - | - | - | 0.00 | % | (11.68 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
| PIMCO High Yield Portfolio, Admin Class | ||||||||||||||||||||
| 2023 | 0 | * | 10.51 | 2 | 5.39 | % | 8.29 | % | ||||||||||||
| 2022 | - | - | - | 0.00 | % | (10.35 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
| PIMCO Low Duration Portfolio, Admin Class | ||||||||||||||||||||
| 2023 | 0 | * | 9.82 | 2 | 3.52 | % | 4.07 | % | ||||||||||||
| 2022 | - | - | - | 0.00 | % | (5.68 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
| PIMCO Real Return Portfolio, Admin Class | ||||||||||||||||||||
| 2023 | 0 | * | 9.75 | 2 | 2.97 | % | 2.42 | % | ||||||||||||
| 2022 | - | - | - | 0.00 | % | (12.03 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
| PIMCO Total Return Portfolio, Admin Class | ||||||||||||||||||||
| 2023 | 1 | 9.01 | 11 | 3.44 | % | 3.16 | % | |||||||||||||
| 2022 | - | - | - | 0.00 | % | (14.33 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
| Vanguard VIF Global Bond Index Portfolio | ||||||||||||||||||||
| 2023 | 0 | * | 9.32 | 3 | 1.07 | % | 3.67 | % | ||||||||||||
| 2022 | - | - | - | 0.00 | % | (13.08 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
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| As of December 31 | For the period ended December 31 | |||||||||||||||||||
| Subaccount | Units (000's) | Unit Fair Value | Net Assets (000's) | Investment Income Ratio (a) | Total Return (b) | |||||||||||||||
| Vanguard VIF Total Bond Market Index Portfolio | ||||||||||||||||||||
| 2023 | 0 | * | 9.25 | 3 | 1.37 | % | 2.79 | % | ||||||||||||
| 2022 | - | - | - | 0.00 | % | (13.30 | )% | |||||||||||||
| 2021 | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
* The Subaccount has units and/or dollars that round to less than one thousand.
(a) These ratios represent the dividends received by the Subaccount, excluding distributions of capital gains, divided by the daily average net assets. The recognition of investment income by the Subaccount is affected by the timing of the declaration of dividends by the underlying mutual fund in which the Subaccounts invest.
(b) These amounts represent the total return for the periods indicated, are not annualized, and include changes in the value of the underlying mutual fund. The total return does not include any expenses addressed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented.
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| 7. | SUBSEQUENT EVENTS |
The Separate Account has evaluated the effects of events subsequent to December 31, 2023, and through the date at which the financial statements were available to be issued. All accounting and disclosure requirements related to subsequent events are included in our financial statements.
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