FS Variable Annuity Account Five

Type of contract:

Response:

Identify reinsurance

contract(s):

Has the insured event(s)

triggering contract coverage

been recognized?

Assumption reinsurance – new for the reporting period

Yes [ ] No [ X ]

Non-proportional reinsurance, which does not result in significant surplus relief

Yes [ ] No [ X ]

FS Variable Annuity Account Five

The United States Life Insurance Company in the City of New York

Financial Statements

December 31, 2023

LOGO

Report of Independent Registered Public Accounting Firm

To the Board of Directors of The United States Life Insurance Company in the City of New York and the Contract Owners of FS Variable Annuity Account Five.

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of each of the subaccounts of FS Variable Annuity Account Five indicated in the table below as of December 31, 2023, and the related statements of operations and changes in net assets for each of the periods indicated in the table below, including 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 of the subaccounts of FS Variable Annuity Account Five as of December 31, 2023 and, the results of each of their operations, and the changes in each of their net assets for the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.


Fidelity VIP Contrafund Portfolio Service Class 2 (1)		SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3 (1)
Fidelity VIP Equity-Income Portfolio Service Class 2 (1)		SST SA Multi-Managed International Equity Portfolio Class 3 (1)
Fidelity VIP Investment Grade Bond Portfolio Service Class 2 (1)		SST SA Multi-Managed Large Cap Growth Portfolio Class 3 (1)
Fidelity VIP Mid Cap Portfolio Service Class 2 (1)		SST SA Multi-Managed Large Cap Value Portfolio Class 3 (1)
Fidelity VIP Overseas Portfolio Service Class 2 (1)		SST SA Multi-Managed Mid Cap Growth Portfolio Class 3 (1)
Goldman Sachs VIT Government Money Market Fund Service Shares (1)		SST SA Multi-Managed Mid Cap Value Portfolio Class 3 (1)
SST Balanced Growth Strategy Class 3 (1)		SST SA Multi-Managed Small Cap Portfolio Class 3 (1)
SST Conservative Growth Strategy Class 3 (1)		SAST SA AB Growth Portfolio Class 3 (1)
SST Growth Strategy Class 3 (1)		SAST SA American Funds Global Growth Portfolio Class 3 (1)
SST Moderate Growth Strategy Class 3 (1)		SAST SA American Funds Growth Portfolio Class 3 (1)
SST SA Allocation Balanced Portfolio Class 3 (1)		SAST SA American Funds Growth-Income Portfolio Class 3 (1)
SST SA Allocation Growth Portfolio Class 3 (1)		SAST SA DFA Ultra Short Bond Portfolio Class 3 (1)
SST SA Allocation Moderate Growth Portfolio Class 3 (1)		SAST SA VCP Dynamic Allocation Portfolio Class 3 (1)
SST SA Allocation Moderate Portfolio Class 3 (1)		SAST SA VCP Dynamic Strategy Portfolio Class 3 (1)
SST SA American Century Inflation Protection Portfolio Class 3 (1)		T Rowe Price Blue Chip Growth Portfolio II Class (1)
SST SA Columbia Focused Value Portfolio Class 3 (1)		T Rowe Price Equity Income Portfolio II Class (1)


(1)		Statement of Operations and Changes in Net Assets for the years ended December 31, 2023 and 2022

Basis for Opinions

These financial statements are the responsibility of The United States Life Insurance Company in the City of New York management. Our responsibility is to express an opinion on the financial statements of each of the sub-accounts of FS Variable Annuity Account Five 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 each of the sub-accounts of FS Variable Annuity Account Five 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 of these financial statements 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 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. Our procedures included confirmation of investments owned as of December 31, 2023 by correspondence with the transfer agents of the investee mutual funds and the custodians. We believe that our audits provide a reasonable basis for our opinions.

LOGO

/s/ PricewaterhouseCoopers LLP

Houston, Texas

April 23, 2024

We have served as the auditor of one or more of the sub-accounts of AIG Life and Retirement Separate Account Group since at least 1994. We have not been able to determine the specific year we began serving as auditor.

PricewaterhouseCoopers LLP, 1000 Louisiana Street, Suite 5800, Houston, TX 77002-5021

T: (713) 356 4000, www.pwc.com/us

FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2023



Sub-accounts		Investments at Fair Value			Due from (to) General Account, Net			Net Assets			Net Assets Attributable to Contract Owner Reserves

Fidelity VIP Contrafund Portfolio Service Class 2	$		347,009	$		—	$		347,009	$		347,009

Fidelity VIP Equity-Income Portfolio Service Class 2			152,226			—			152,226			152,226

Fidelity VIP Investment Grade Bond Portfolio Service Class 2			321,913			—			321,913			321,913

Fidelity VIP Mid Cap Portfolio Service Class 2			225,539			—			225,539			225,539

Fidelity VIP Overseas Portfolio Service Class 2			121,946			—			121,946			121,946

Goldman Sachs VIT Government Money Market Fund Service Shares			50,318			—			50,318			50,318

SST Balanced Growth Strategy Class 3			361,932			—			361,932			361,932

SST Conservative Growth Strategy Class 3			433,294			—			433,294			433,294

SST Growth Strategy Class 3			1,150,566			—			1,150,566			1,150,566

SST Moderate Growth Strategy Class 3			644,378			—			644,378			644,378

SST SA Allocation Balanced Portfolio Class 3			3,978,580			—			3,978,580			3,978,580

SST SA Allocation Growth Portfolio Class 3			3,942,890			—			3,942,890			3,942,890

SST SA Allocation Moderate Growth Portfolio Class 3			11,057,598			—			11,057,598			11,057,598

SST SA Allocation Moderate Portfolio Class 3			3,806,217			—			3,806,217			3,806,217

SST SA American Century Inflation Protection Portfolio Class 3			106,521			—			106,521			106,521

SST SA Columbia Focused Value Portfolio Class 3			236,283			—			236,283			236,283

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3			253,100			—			253,100			253,100

SST SA Multi-Managed International Equity Portfolio Class 3			498,055			—			498,055			498,055

SST SA Multi-Managed Large Cap Growth Portfolio Class 3			242,694			—			242,694			242,694

SST SA Multi-Managed Large Cap Value Portfolio Class 3			186,134			—			186,134			186,134

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3			647,678			—			647,678			647,678

SST SA Multi-Managed Mid Cap Value Portfolio Class 3			223,842			—			223,842			223,842

SST SA Multi-Managed Small Cap Portfolio Class 3			320,779			—			320,779			320,779

SAST SA AB Growth Portfolio Class 3			338,191			—			338,191			338,191

SAST SA American Funds Global Growth Portfolio Class 3			166,499			—			166,499			166,499

SAST SA American Funds Growth Portfolio Class 3			37,440			—			37,440			37,440

SAST SA American Funds Growth-Income Portfolio Class 3			109,615			—			109,615			109,615

SAST SA DFA Ultra Short Bond Portfolio Class 3			102,477			—			102,477			102,477

SAST SA VCP Dynamic Allocation Portfolio Class 3			1,667,025			—			1,667,025			1,667,025

SAST SA VCP Dynamic Strategy Portfolio Class 3			1,502,585			—			1,502,585			1,502,585

T Rowe Price Blue Chip Growth Portfolio II Class			99,244			—			99,244			99,244

T Rowe Price Equity Income Portfolio II Class			365,994			—			365,994			365,994

The accompanying Notes to Financial Statements are an integral part of this statement.

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

SCHEDULE OF PORTFOLIO INVESTMENTS

December 31, 2023



Sub-accounts	Shares			Net Asset Value per Share			Shares at Fair Value			Cost of Shares Held		Level*

Fidelity VIP Contrafund Portfolio Service Class 2		7,410	$		46.83	$		347,009	$		281,585	1

Fidelity VIP Equity-Income Portfolio Service Class 2		6,367			23.91			152,226			135,289	1

Fidelity VIP Investment Grade Bond Portfolio Service Class 2		29,752			10.82			321,913			372,602	1

Fidelity VIP Mid Cap Portfolio Service Class 2		6,502			34.69			225,539			201,584	1

Fidelity VIP Overseas Portfolio Service Class 2		4,780			25.51			121,946			98,943	1

Goldman Sachs VIT Government Money Market Fund Service Shares		50,318			1.00			50,318			50,318	1

SST Balanced Growth Strategy Class 3		6,435			56.24			361,932			169,864	1

SST Conservative Growth Strategy Class 3		8,986			48.22			433,294			245,960	1

SST Growth Strategy Class 3		15,874			72.48			1,150,566			605,376	1

SST Moderate Growth Strategy Class 3		9,921			64.95			644,378			269,941	1

SST SA Allocation Balanced Portfolio Class 3		448,038			8.88			3,978,580			4,463,745	1

SST SA Allocation Growth Portfolio Class 3		287,592			13.71			3,942,890			3,584,518	1

SST SA Allocation Moderate Growth Portfolio Class 3		1,172,598			9.43			11,057,598			12,180,415	1

SST SA Allocation Moderate Portfolio Class 3		407,518			9.34			3,806,217			4,249,224	1

SST SA American Century Inflation Protection Portfolio Class 3		12,430			8.57			106,521			119,436	1

SST SA Columbia Focused Value Portfolio Class 3		12,332			19.16			236,283			227,466	1

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3		25,209			10.04			253,100			294,498	1

SST SA Multi-Managed International Equity Portfolio Class 3		57,712			8.63			498,055			490,177	1

SST SA Multi-Managed Large Cap Growth Portfolio Class 3		22,639			10.72			242,694			295,053	1

SST SA Multi-Managed Large Cap Value Portfolio Class 3		14,451			12.88			186,134			206,775	1

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3		66,225			9.78			647,678			888,598	1

SST SA Multi-Managed Mid Cap Value Portfolio Class 3		14,105			15.87			223,842			219,583	1

SST SA Multi-Managed Small Cap Portfolio Class 3		32,666			9.82			320,779			379,862	1

SAST SA AB Growth Portfolio Class 3		6,526			51.82			338,191			302,305	1

SAST SA American Funds Global Growth Portfolio Class 3		15,068			11.05			166,499			168,709	1

SAST SA American Funds Growth Portfolio Class 3		2,790			13.42			37,440			32,223	1

SAST SA American Funds Growth-Income Portfolio Class 3		8,790			12.47			109,615			93,972	1

SAST SA DFA Ultra Short Bond Portfolio Class 3		9,911			10.34			102,477			102,857	1

SAST SA VCP Dynamic Allocation Portfolio Class 3		154,211			10.81			1,667,025			1,852,154	1

SAST SA VCP Dynamic Strategy Portfolio Class 3		134,640			11.16			1,502,585			1,680,282	1

T Rowe Price Blue Chip Growth Portfolio II Class		2,279			43.54			99,244			67,414	1

T Rowe Price Equity Income Portfolio II Class		13,265			27.59			365,994			327,361	1

* Represents the level within the fair value hierarchy under which the portfolio is classified as defined in ASC 820 and described in Note 3 to the financial statements.

The accompanying Notes to Financial Statements are an integral part of this statement.

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS



	Fidelity VIP Contrafund Portfolio Service Class 2			Fidelity VIP Equity- Income Portfolio Service Class 2			Fidelity VIP Investment Grade Bond Portfolio Service Class 2			Fidelity VIP Mid Cap Portfolio Service Class 2			Fidelity VIP Overseas Portfolio Service Class 2
For the Year Ended December 31, 2023

From operations:

Dividends	$	824		$	2,539		$	7,713		$	830		$	943

Mortality and expense risk and administrative charges		(5,167	)		(2,281	)		(4,728	)		(3,874	)		(1,852	)

Net investment income (loss)		(4,343	)		258			2,985			(3,044	)		(909	)

Net realized gain (loss)		19,984			2,334			(5,046	)		1,791			4,087

Capital gain distribution from mutual funds		11,641			4,356			—			6,300			316

Change in unrealized appreciation (depreciation) of investments		59,262			5,434			15,694			22,391			16,894

Increase (decrease) in net assets from operations		86,544			12,382			13,633			27,438			20,388

From contract transactions:

Payments received from contract owners		40,847			—			13,616			—			—

Payments for contract benefits or terminations		(61,851	)		(14,094	)		(18,043	)		(52,245	)		(6,407	)

Transfers between sub-accounts (including fixed account), net		(7,299	)		3,596			15,896			(669	)		(5,081	)

Contract maintenance charges		(2,175	)		(2,425	)		(4,232	)		(3,046	)		(1,692	)

Increase (decrease) in net assets from contract transactions		(30,478	)		(12,923	)		7,237			(55,960	)		(13,180	)

Increase (decrease) in net assets		56,066			(541	)		20,870			(28,522	)		7,208

Net assets at beginning of period		290,943			152,767			301,043			254,061			114,738

Net assets at end of period	$	347,009		$	152,226		$	321,913		$	225,539		$	121,946

Beginning units		11,909			7,174			24,847			10,903			10,122

Units issued		1,367			245			2,485			135			291

Units redeemed		(2,506	)		(839	)		(1,908	)		(2,486	)		(1,323	)

Ending units		10,770			6,580			25,424			8,552			9,090

For the Year Ended December 31, 2022

From operations:

Dividends	$	852		$	2,766		$	6,555		$	730		$	1,091

Mortality and expense risk and administrative charges		(6,225	)		(2,556	)		(5,395	)		(4,285	)		(1,937	)

Net investment income (loss)		(5,373	)		210			1,160			(3,555	)		(846	)

Net realized gain (loss)		14,207			3,768			(8,466	)		942			2,206

Capital gain distribution from mutual funds		17,022			5,559			19,885			18,690			1,093

Change in unrealized appreciation (depreciation) of investments		(172,395	)		(22,327	)		(70,012	)		(68,974	)		(41,991	)

Increase (decrease) in net assets from operations		(146,539	)		(12,790	)		(57,433	)		(52,897	)		(39,538	)

From contract transactions:

Payments for contract benefits or terminations		(134,274	)		(11,747	)		(52,627	)		(14,504	)		(5,724	)

Transfers between sub-accounts (including fixed account), net		5,471			(14,212	)		(10,310	)		(3,715	)		9,586

Contract maintenance charges		(2,690	)		(2,539	)		(4,427	)		(3,152	)		(1,673	)

Increase (decrease) in net assets from contract transactions		(131,493	)		(28,498	)		(67,364	)		(21,371	)		2,189

Increase (decrease) in net assets		(278,032	)		(41,288	)		(124,797	)		(74,268	)		(37,349	)

Net assets at beginning of period		568,975			194,055			425,840			328,329			152,087

Net assets at end of period	$	290,943		$	152,767		$	301,043		$	254,061		$	114,738

Beginning units		16,816			8,511			30,042			11,800			9,952

Units issued		253			17			770			356			1,613

Units redeemed		(5,160	)		(1,354	)		(5,965	)		(1,253	)		(1,443	)

Ending units		11,909			7,174			24,847			10,903			10,122

The accompanying Notes to Financial Statements are an integral part of this statement.

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS



	Goldman Sachs VIT Government Money Market Fund Service Shares			SST Balanced Growth Strategy Class 3			SST Conservative Growth Strategy Class 3			SST Growth Strategy Class 3			SST Moderate Growth Strategy Class 3
For the Year Ended December 31, 2023

From operations:

Dividends	$	2,424		$	—		$	—		$	—		$	—

Mortality and expense risk and administrative charges		(906	)		(5,233	)		(6,746	)		(17,445	)		(9,864	)

Net investment income (loss)		1,518			(5,233	)		(6,746	)		(17,445	)		(9,864	)

Net realized gain (loss)		—			31,006			24,632			158,650			106,708

Change in unrealized appreciation (depreciation) of investments		—			43,665			49,449			143,954			38,681

Increase (decrease) in net assets from operations		1,518			69,438			67,335			285,159			135,525

From contract transactions:

Payments for contract benefits or terminations		(4,057	)		(46,951	)		(58,576	)		(307,850	)		(137,278	)

Transfers between sub-accounts (including fixed account), net		(1	)		(138	)		(432	)		(16,763	)		(15,184	)

Contract maintenance charges		(974	)		(1,279	)		(1,750	)		(8,166	)		(4,355	)

Increase (decrease) in net assets from contract transactions		(5,032	)		(48,368	)		(60,758	)		(332,779	)		(156,817	)

Increase (decrease) in net assets		(3,514	)		21,070			6,577			(47,620	)		(21,292	)

Net assets at beginning of period		53,832			340,862			426,717			1,198,186			665,670

Net assets at end of period	$	50,318		$	361,932		$	433,294		$	1,150,566		$	644,378

Beginning units		5,520			10,917			15,561			31,735			19,385

Units issued		—			—			—			46			37

Units redeemed		(510	)		(1,385	)		(2,035	)		(8,020	)		(4,392	)

Ending units		5,010			9,532			13,526			23,761			15,030

For the Year Ended December 31, 2022

From operations:

Dividends	$	666		$	—		$	—		$	—		$	—

Mortality and expense risk and administrative charges		(442	)		(6,046	)		(7,800	)		(21,806	)		(12,129	)

Net investment income (loss)		224			(6,046	)		(7,800	)		(21,806	)		(12,129	)

Net realized gain (loss)		—			31,157			120,599			45,239			34,959

Change in unrealized appreciation (depreciation) of investments		—			(183,493	)		(267,179	)		(676,722	)		(337,774	)

Increase (decrease) in net assets from operations		224			(158,382	)		(154,380	)		(653,289	)		(314,944	)

From contract transactions:

Payments received from contract owners		—			—			150,639			—			—

Payments for contract benefits or terminations		(1,014	)		(46,896	)		(205,511	)		(55,451	)		(35,606	)

Transfers between sub-accounts (including fixed account), net		55,109			222			1,951			30,960			26,094

Contract maintenance charges		(487	)		(1,594	)		(2,151	)		(10,257	)		(4,981	)

Increase (decrease) in net assets from contract transactions		53,608			(48,268	)		(55,072	)		(34,748	)		(14,493	)

Increase (decrease) in net assets		53,832			(206,650	)		(209,452	)		(688,037	)		(329,437	)

Net assets at beginning of period		—			547,512			636,169			1,886,223			995,107

Net assets at end of period	$	53,832		$	340,862		$	426,717		$	1,198,186		$	665,670

Beginning units		—			12,297			17,496			32,489			19,771

Units issued		5,674			7			4,946			906			772

Units redeemed		(154	)		(1,387	)		(6,881	)		(1,660	)		(1,158	)

Ending units		5,520			10,917			15,561			31,735			19,385

The accompanying Notes to Financial Statements are an integral part of this statement.

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS



	SST SA Allocation Balanced Portfolio Class 3			SST SA Allocation Growth Portfolio Class 3			SST SA American Moderate Growth Portfolio Class 3			SST SA Allocation Moderate Portfolio Class 3			SST SA Allocation Century Inflation Protection Portfolio Class 3
For the Year Ended December 31, 2023

From operations:

Dividends	$	86,590		$	79,955		$	248,109		$	84,584		$	4,943

Mortality and expense risk and administrative charges		(60,643	)		(55,890	)		(168,499	)		(56,350	)		(1,758	)

Net investment income (loss)		25,947			24,065			79,610			28,234			3,185

Net realized gain (loss)		(99,617	)		73,098			(218,048	)		(20,426	)		(3,431	)

Capital gain distribution from mutual funds		205,595			328,062			834,850			257,165			—

Change in unrealized appreciation (depreciation) of investments		234,028			120,347			661,813			153,935			1,594

Increase (decrease) in net assets from operations		365,953			545,572			1,358,225			418,908			1,348

From contract transactions:

Payments received from contract owners		13,616			—			—			—			—

Payments for contract benefits or terminations		(390,950	)		(308,520	)		(969,269	)		(182,987	)		(24,286	)

Transfers between sub-accounts (including fixed account), net		14,278			(668	)		(91,380	)		4,147			8,094

Contract maintenance charges		(51,925	)		(6,461	)		(123,994	)		(26,449	)		(640	)

Increase (decrease) in net assets from contract transactions		(414,981	)		(315,649	)		(1,184,643	)		(205,289	)		(16,832	)

Increase (decrease) in net assets		(49,028	)		229,923			173,582			213,619			(15,484	)

Net assets at beginning of period		4,027,608			3,712,967			10,884,016			3,592,598			122,005

Net assets at end of period	$	3,978,580		$	3,942,890		$	11,057,598		$	3,806,217		$	106,521

Beginning units		250,168			183,882			603,641			205,699			11,165

Units issued		2,084			—			931			415			790

Units redeemed		(27,194	)		(14,467	)		(63,370	)		(11,436	)		(2,429	)

Ending units		225,058			169,415			541,202			194,678			9,526

For the Year Ended December 31, 2022

From operations:

Dividends	$	115,255		$	92,284		$	326,430		$	109,377		$	2,940

Mortality and expense risk and administrative charges		(70,766	)		(59,455	)		(188,964	)		(62,947	)		(2,025	)

Net investment income (loss)		44,489			32,829			137,466			46,430			915

Net realized gain (loss)		(117,569	)		38,216			(55,904	)		12,526			(275	)

Capital gain distribution from mutual funds		209,632			219,127			766,144			247,908			1,893

Change in unrealized appreciation (depreciation) of investments		(1,044,951	)		(1,157,159	)		(3,436,147	)		(1,159,014	)		(20,434	)

Increase (decrease) in net assets from operations		(908,399	)		(866,987	)		(2,588,441	)		(852,150	)		(17,901	)

From contract transactions:

Payments for contract benefits or terminations		(627,596	)		(74,096	)		(965,707	)		(524,203	)		(5,135	)

Transfers between sub-accounts (including fixed account), net		(11,837	)		1,669			(27,325	)		(7,208	)		(6,164	)

Contract maintenance charges		(53,614	)		(8,273	)		(130,232	)		(28,047	)		(712	)

Increase (decrease) in net assets from contract transactions		(693,047	)		(80,700	)		(1,123,264	)		(559,458	)		(12,011	)

Increase (decrease) in net assets		(1,601,446	)		(947,687	)		(3,711,705	)		(1,411,608	)		(29,912	)

Net assets at beginning of period		5,629,054			4,660,654			14,595,721			5,004,206			151,917

Net assets at end of period	$	4,027,608		$	3,712,967		$	10,884,016		$	3,592,598		$	122,005

Beginning units		290,492			187,525			663,808			236,357			12,166

Units issued		552			81			1,352			386			389

Units redeemed		(40,876	)		(3,724	)		(61,519	)		(31,044	)		(1,390	)

Ending units		250,168			183,882			603,641			205,699			11,165

The accompanying Notes to Financial Statements are an integral part of this statement.

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS



	SST SA Columbia Focused Value Portfolio Class 3			SST SA Multi- Managed Diversified Fixed Income Portfolio Class 3			SST SA Multi- Managed International Equity Portfolio Class 3			SST SA Multi- Managed Large Cap Growth Portfolio Class 3			SST SA Multi- Managed Large Cap Value Portfolio Class 3
For the Year Ended December 31, 2023

From operations:

Dividends	$	2,805		$	5,331		$	9,801		$	—		$	3,415

Mortality and expense risk and administrative charges		(3,943	)		(4,026	)		(8,015	)		(3,835	)		(2,851	)

Net investment income (loss)		(1,138	)		1,305			1,786			(3,835	)		564

Net realized gain (loss)		12,567			(5,662	)		(2,905	)		(38,154	)		(2,860	)

Capital gain distribution from mutual funds		13,304			—			1,436			786			24,326

Change in unrealized appreciation (depreciation) of investments		(17,639	)		14,837			63,888			115,523			(3,465	)

Increase (decrease) in net assets from operations		7,094			10,480			64,205			74,320			18,565

From contract transactions:

Payments for contract benefits or terminations		(32,821	)		(23,222	)		(49,844	)		(40,639	)		(20,763	)

Transfers between sub-accounts (including fixed account), net		18,239			6,997			2,153			(24,770	)		5,748

Contract maintenance charges		(281	)		(1,424	)		(1,818	)		(2,001	)		(440	)

Increase (decrease) in net assets from contract transactions		(14,863	)		(17,649	)		(49,509	)		(67,410	)		(15,455	)

Increase (decrease) in net assets		(7,769	)		(7,169	)		14,696			6,910			3,110

Net assets at beginning of period		244,052			260,269			483,359			235,784			183,024

Net assets at end of period	$	236,283		$	253,100		$	498,055		$	242,694		$	186,134

Beginning units		6,073			19,383			40,577			9,028			5,606

Units issued		441			576			638			42			208

Units redeemed		(843	)		(1,875	)		(4,582	)		(2,186	)		(686	)

Ending units		5,671			18,084			36,633			6,884			5,128

For the Year Ended December 31, 2022

From operations:

Dividends	$	4,089		$	5,270		$	8,784		$	—		$	3,073

Mortality and expense risk and administrative charges		(4,793	)		(4,661	)		(8,293	)		(4,171	)		(3,248	)

Net investment income (loss)		(704	)		609			491			(4,171	)		(175	)

Net realized gain (loss)		18,054			(6,110	)		(688	)		(8,704	)		(486	)

Capital gain distribution from mutual funds		28,773			—			33,456			44,413			31,896

Change in unrealized appreciation (depreciation) of investments		(59,281	)		(47,388	)		(143,659	)		(178,893	)		(44,631	)

Increase (decrease) in net assets from operations		(13,158	)		(52,889	)		(110,400	)		(147,355	)		(13,396	)

From contract transactions:

Payments for contract benefits or terminations		(24,409	)		(24,854	)		(29,468	)		(35,619	)		(27,637	)

Transfers between sub-accounts (including fixed account), net		(34,123	)		(5,768	)		(7,963	)		38,969			(20,794	)

Contract maintenance charges		(408	)		(1,582	)		(1,956	)		(2,053	)		(541	)

Increase (decrease) in net assets from contract transactions		(58,940	)		(32,204	)		(39,387	)		1,297			(48,972	)

Increase (decrease) in net assets		(72,098	)		(85,093	)		(149,787	)		(146,058	)		(62,368	)

Net assets at beginning of period		316,150			345,362			633,146			381,842			245,392

Net assets at end of period	$	244,052		$	260,269		$	483,359		$	235,784		$	183,024

Beginning units		7,538			21,684			43,599			8,907			7,118

Units issued		2			222			1,430			1,453			9

Units redeemed		(1,467	)		(2,523	)		(4,452	)		(1,332	)		(1,521	)

Ending units		6,073			19,383			40,577			9,028			5,606

The accompanying Notes to Financial Statements are an integral part of this statement.

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS



	SST SA Multi- Managed Mid Cap Growth Portfolio Class 3			SST SA Multi- Managed Mid Cap Value Portfolio Class 3			SST SA Multi- Managed small Cap Portfolio Class 3			SAST SA AB Growth Portfolio Class 3			SAST SA American Funds Global Growth Portfolio Class 3
For the Year Ended December 31, 2023

From operations:

Dividends	$	—		$	2,047		$	687		$	—		$	1,431

Mortality and expense risk and administrative charges		(8,891	)		(3,211	)		(4,935	)		(6,929	)		(3,083	)

Net investment income (loss)		(8,891	)		(1,164	)		(4,248	)		(6,929	)		(1,652	)

Net realized gain (loss)		(14,281	)		(1,076	)		(14,154	)		19,602			(1,120	)

Capital gain distribution from mutual funds		—			16,376			10,698			24,417			27,229

Change in unrealized appreciation (depreciation) of investments		130,195			10,603			38,528			80,914			9,768

Increase (decrease) in net assets from operations		107,023			24,739			30,824			118,004			34,225

From contract transactions:

Payments for contract benefits or terminations		(13,581	)		(17,588	)		(27,912	)		(199,866	)		(58,174	)

Transfers between sub-accounts (including fixed account), net		(8,443	)		6,082			8,679			(9,305	)		(5,795	)

Contract maintenance charges		(1,072	)		(656	)		(1,448	)		(1,287	)		(1,920	)

Increase (decrease) in net assets from contract transactions		(23,096	)		(12,162	)		(20,681	)		(210,458	)		(65,889	)

Increase (decrease) in net assets		83,927			12,577			10,143			(92,454	)		(31,664	)
Net assets at beginning of period		563,751			211,265			310,636			430,645			198,163

Net assets at end of period	$	647,678		$	223,842		$	320,779		$	338,191		$	166,499

Beginning units		10,934			3,997			12,942			30,787			7,424
Units issued		29			135			392			—			54

Units redeemed		(443	)		(384	)		(1,247	)		(12,602	)		(2,313	)

Ending units		10,520			3,748			12,087			18,185			5,165

For the Year Ended December 31, 2022

From operations:

Dividends	$	—		$	1,172		$	447		$	—		$	—

Mortality and expense risk and administrative charges		(8,706	)		(3,603	)		(5,600	)		(6,561	)		(3,475	)

Net investment income (loss)		(8,706	)		(2,431	)		(5,153	)		(6,561	)		(3,475	)

Net realized gain (loss)		(45	)		1,869			(651	)		4,342			(2,497	)

Capital gain distribution from mutual funds		185,649			31,816			60,788			78,394			1,309

Change in unrealized appreciation (depreciation) of investments		(412,615	)		(60,174	)		(133,159	)		(231,011	)		(73,471	)

Increase (decrease) in net assets from operations		(235,717	)		(28,920	)		(78,175	)		(154,836	)		(78,134	)

From contract transactions:

Payments received from contract owners		—			—			—			80,671			—

Payments for contract benefits or terminations		(14,337	)		(22,495	)		(48,649	)		(36,541	)		(33,442	)

Transfers between sub-accounts (including fixed account), net		26,228			(18,328	)		(6,360	)		9,342			9,302

Contract maintenance charges		(1,112	)		(771	)		(1,654	)		(1,530	)		(2,001	)

Increase (decrease) in net assets from contract transactions		10,779			(41,594	)		(56,663	)		51,942			(26,141	)

Increase (decrease) in net assets		(224,938	)		(70,514	)		(134,838	)		(102,894	)		(104,275	)

Net assets at beginning of period		788,689			281,779			445,474			533,539			302,438

Net assets at end of period	$	563,751		$	211,265		$	310,636		$	430,645		$	198,163

Beginning units		10,684			4,776			15,157			26,772			8,371

Units issued		602			19			61			6,607			531

Units redeemed		(352	)		(798	)		(2,276	)		(2,592	)		(1,478	)

Ending units		10,934			3,997			12,942			30,787			7,424

The accompanying Notes to Financial Statements are an integral part of this statement.

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS



	SAST SA American Funds Growth Portfolio Class 3			SAST SA American Funds Growth- Income Portfolio Class 3			SAST SA DFA Ultra Short Bond Portfolio Class 3			SAST SA VCP Dynamic Allocation Portfolio Class 3			SAST SA VCP Dynamic Strategy Portfolio Class 3
For the Year Ended December 31, 2023

From operations:

Dividends	$	495		$	2,294		$	1,000		$	35,870		$	36,552

Mortality and expense risk and administrative charges		(570	)		(1,597	)		(1,710	)		(22,177	)		(25,799	)

Net investment income (loss)		(75	)		697			(710	)		13,693			10,753

Net realized gain (loss)		1,724			1,619			(265	)		(30,601	)		(17,543	)

Capital gain distribution from mutual funds		4,077			8,514			—			72,865			128,866

Change in unrealized appreciation (depreciation) of investments		5,704			11,954			3,826			123,395			25,320

Increase (decrease) in net assets from operations		11,430			22,784			2,851			179,352			147,396

From contract transactions:

Payments for contract benefits or terminations		(1,826	)		(8,333	)		(10,758	)		(110,041	)		(83,510	)

Transfers between sub-accounts (including fixed account), net		(6,299	)		(4,678	)		576			219,328			(213,022	)

Contract maintenance charges		(528	)		(1,808	)		(1,121	)		(35,384	)		(35,646	)

Increase (decrease) in net assets from contract transactions		(8,653	)		(14,819	)		(11,303	)		73,903			(332,178	)

Increase (decrease) in net assets		2,777			7,965			(8,452	)		253,255			(184,782	)

Net assets at beginning of period		34,663			101,650			110,929			1,413,770			1,687,367

Net assets at end of period	$	37,440		$	109,615		$	102,477		$	1,667,025		$	1,502,585

Beginning units		1,039			3,862			12,531			93,532			114,382

Units issued		—			1			96			15,445			969

Units redeemed		(213	)		(502	)		(1,355	)		(9,954	)		(23,271	)

Ending units		826			3,361			11,272			99,023			92,080

For the Year Ended December 31, 2022

From operations:

Dividends	$	194		$	966		$	—		$	37,745		$	40,935

Mortality and expense risk and administrative charges		(579	)		(1,707	)		(2,066	)		(24,760	)		(30,469	)

Net investment income (loss)		(385	)		(741	)		(2,066	)		12,985			10,466

Net realized gain (loss)		795			(125	)		(1,076	)		(20,034	)		10,281

Capital gain distribution from mutual funds		5,114			3,310			—			127,343			104,512

Change in unrealized appreciation (depreciation) of investments		(19,913	)		(26,488	)		(1,520	)		(481,364	)		(484,762	)

Increase (decrease) in net assets from operations		(14,389	)		(24,044	)		(4,662	)		(361,070	)		(359,503	)

From contract transactions:

Payments for contract benefits or terminations		(1,890	)		(8,317	)		(28,658	)		(194,291	)		(181,861	)

Transfers between sub-accounts (including fixed account), net		5,521			(443	)		(1,060	)		5,376			(36,343	)

Contract maintenance charges		(503	)		(1,793	)		(1,343	)		(35,474	)		(38,466	)

Increase (decrease) in net assets from contract transactions		3,128			(10,553	)		(31,061	)		(224,389	)		(256,670	)

Increase (decrease) in net assets		(11,261	)		(34,597	)		(35,723	)		(585,459	)		(616,173	)

Net assets at beginning of period		45,924			136,247			146,652			1,999,229			2,303,540

Net assets at end of period	$	34,663		$	101,650		$	110,929		$	1,413,770		$	1,687,367

Beginning units		948			4,243			16,002			108,090			131,427

Units issued		192			86			44			1,653			451

Units redeemed		(101	)		(467	)		(3,515	)		(16,211	)		(17,496	)

Ending units		1,039			3,862			12,531			93,532			114,382

The accompanying Notes to Financial Statements are an integral part of this statement.

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS



	T Rowe Price Blue Chip Growth Portfolio II Class			T Rowe Price Equity Income Portfolio II Class
For the Year Ended December 31, 2023

From operations:

Dividends	$	—		$	6,598

Mortality and expense risk and administrative charges		(1,345	)		(5,046	)

Net investment income (loss)		(1,345	)		1,552

Net realized gain (loss)		10,493			2,841

Capital gain distribution from mutual funds		—			15,018

Change in unrealized appreciation (depreciation) of investments		25,981			6,925

Increase (decrease) in net assets from operations		35,129			26,336

From contract transactions:

Payments for contract benefits or terminations		(9,481	)		(10,435	)

Transfers between sub-accounts (including fixed account), net		(7,460	)		4,458

Contract maintenance charges		(1,694	)		(1,765	)

Increase (decrease) in net assets from contract transactions		(18,635	)		(7,742	)

Increase (decrease) in net assets		16,494			18,594

Net assets at beginning of period		82,750			347,400

Net assets at end of period	$	99,244		$	365,994

Beginning units		2,901			16,014

Units issued		—			272

Units redeemed		(533	)		(628	)

Ending units		2,368			15,658

For the Year Ended December 31, 2022

From operations:

Dividends	$	—		$	6,060

Mortality and expense risk and administrative charges		(1,454	)		(5,302	)

Net investment income (loss)		(1,454	)		758

Net realized gain (loss)		7,954			4,770

Capital gain distribution from mutual funds		4,516			18,357

Change in unrealized appreciation (depreciation) of investments		(65,311	)		(42,563	)

Increase (decrease) in net assets from operations		(54,295	)		(18,678	)

From contract transactions:

Payments for contract benefits or terminations		(9,792	)		(7,741	)

Transfers between sub-accounts (including fixed account), net		7,844			(17,017	)

Contract maintenance charges		(1,645	)		(1,862	)

Increase (decrease) in net assets from contract transactions		(3,593	)		(26,620	)

Increase (decrease) in net assets		(57,888	)		(45,298	)

Net assets at beginning of period		140,638			392,698

Net assets at end of period	$	82,750		$	347,400

Beginning units		2,975			17,223

Units issued		263			80

Units redeemed		(337	)		(1,289	)

Ending units		2,901			16,014

The accompanying Notes to Financial Statements are an integral part of this statement.

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS

1.	Organization

FS Variable Annuity Account Five (“the Separate Account”) is a segregated investment account established by The United States Life Insurance Company in the City of New York (“USL”) to receive and invest premium payments from variable annuity contracts issued by USL. USL is a wholly owned subsidiary of AGC Life Insurance Company (“AGC Life”), which is wholly owned by Corebridge Life Holdings, Inc. (formerly known as AIG Life Holdings, Inc.) (“Corebridge Life Holdings”). Corebridge Life Holdings is wholly owned by Corebridge Financial, Inc. (“Corebridge”), which American International Group, Inc. (“AIG”) owns 52.2% of their outstanding common stock as of December 31, 2023. AIG is a holding company, which through its subsidiaries provides a wide range of property casualty insurance, life insurance, retirement products and other financial services to commercial and individual customers in more than 190 countries and jurisdictions. The term “AIG” means American International Group, Inc. and not any of AIG’s consolidated subsidiaries.

The Separate Account includes the following variable annuity products:


Seasons Elite		Seasons Triple Elite
Seasons Select II

The Separate Account contracts are sold through USL’s affiliated broker-dealers, independent broker-dealers, full-service securities firms, and financial institutions. The distributor of the Separate Account is Corebridge Capital Services, Inc., formerly known as AIG Capital Services, Inc., an affiliate of USL. No underwriting fees are paid in connection with the distribution of these contracts.

The Separate Account is registered with the Securities and Exchange Commission as a Unit Investment Trust under the Investment Company Act of 1940, as amended. The Separate Account consists of various sub-accounts. Each sub-account invests all its investible assets in a corresponding eligible mutual fund, which is registered under the 1940 Act as an open-ended management investment company. The names in bold in the table below are the diversified, open-ended management investment companies and the names below them are the names of the sub-accounts/corresponding eligible mutual funds. Collectively, all of the mutual funds are referred to as “Funds” throughout these financial statements.

For each sub-account, the financial statements are comprised of a Statement of Assets and Liabilities, including a Schedule of Portfolio Investments, as of December 31, 2023 and related Statements of Operations and Changes in Net Assets for each of the years in the period then ended.


Fidelity Variable Insurance Products (Fidelity VIP)
Fidelity VIP Contrafund Portfolio Service Class 2		Fidelity VIP Mid Cap Portfolio Service Class 2
Fidelity VIP Equity-Income Portfolio Service Class 2		Fidelity VIP Overseas Portfolio Service Class 2
Fidelity VIP Investment Grade Bond Portfolio Service Class 2

Goldman Sachs Variable Insurance Trust (Goldman Sachs VIT)
Goldman Sachs VIT Government Money Market Fund Service Shares

Seasons Series Trust (SST)^(a)(b)
SST Balanced Growth Strategy Class 3		SST SA Columbia Focused Value Portfolio Class 3
SST Conservative Growth Strategy Class 3		SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3
SST Growth Strategy Class 3		SST SA Multi-Managed International Equity Portfolio Class 3
SST Moderate Growth Strategy Class 3		SST SA Multi-Managed Large Cap Growth Portfolio Class 3
SST SA Allocation Balanced Portfolio Class 3		SST SA Multi-Managed Large Cap Value Portfolio Class 3
SST SA Allocation Growth Portfolio Class 3		SST SA Multi-Managed Mid Cap Growth Portfolio Class 3
SST SA Allocation Moderate Growth Portfolio Class 3		SST SA Multi-Managed Mid Cap Value Portfolio Class 3
SST SA Allocation Moderate Portfolio Class 3		SST SA Multi-Managed Small Cap Portfolio Class 3
SST SA American Century Inflation Protection Portfolio Class 3

SunAmerica Series Trust (SAST)^(a)
SAST SA AB Growth Portfolio Class 3		SAST SA DFA Ultra Short Bond Portfolio Class 3
SAST SA American Funds Global Growth Portfolio Class 3		SAST SA VCP Dynamic Allocation Portfolio Class 3
SAST SA American Funds Growth Portfolio Class 3		SAST SA VCP Dynamic Strategy Portfolio Class 3
SAST SA American Funds Growth-Income Portfolio Class 3

T. Rowe Price Equity Series, Inc. (T. Rowe Price)
T Rowe Price Blue Chip Growth Portfolio II Class		T Rowe Price Equity Income Portfolio II Class

(a)	These are affiliated investment companies. SunAmerica Asset Management, LLC., an affiliate of USL, serves as the investment advisor to Seasons Series Trust and SunAmerica Series Trust.

(b)

Consists of multi-managed variable investment strategies (Seasons Strategies, Select Portfolios, Focused Portfolios and Managed Allocation Portfolios) each with a distinct investment objective. The Seasons Strategies are comprised of Growth, Moderate Growth, Balanced Growth, and Conservative Growth. Each strategy invests in the shares of a designated multi-managed portfolio as well as in the shares of two other portfolios

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

of the Seasons Trust. Each of the Select Portfolios, Managed Allocation Portfolios and Focused Portfolios is invested solely in the shares of designated portfolio of Seasons Series Trust.

In addition to the sub-accounts above, a contract owner may allocate contract funds to a fixed account, which is part of USL’s General Account and not included in these financial statements. Contract owners should refer to the product prospectus for the available Funds and fixed account.

The assets of each of the sub-accounts of the Separate Account are registered in the name of USL. Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from USL’s other assets and liabilities. The Separate Account assets are not chargeable with liabilities arising out of any other business USL may conduct. Net premiums from the contracts are allocated to the sub-accounts and invested in the Funds in accordance with contract owner instructions and are recorded as contract transactions in the Statements of Operations and Changes in Net Assets.

2.	Summary of Significant Accounting Policy

The financial statements of the Separate Account have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). The Separate Account is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The following is a summary of significant accounting policies consistently followed by the Separate Account in the preparation of its financial statements.

Use of Estimates: The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from assumptions used, the financial statements of the Separate Account could be materially affected.

Investments: Investments in mutual funds are valued at their closing net asset value per share as determined by the respective mutual funds, which generally value their securities at fair value. Purchases and sales of shares of the Funds are made at the net asset values of such Funds. Transactions are recorded on a trade date basis. Realized gains and losses on the sales of investments are recognized at the date of sale and are determined on a first-in, first-out basis. Dividends and capital gain distributions from the Funds are recorded on the ex-dividend date and reinvested upon receipt.

Accumulation Unit: This is the basic valuation unit used to calculate the contract owner’s interest. Such units are valued daily to reflect investment performance and the prorated daily deduction for expense charges.

Income Taxes: The operations of the Separate Account are included in the federal income tax return of USL, which is taxed as a life insurance company under the provision of the Internal Revenue Code (the Code). Under the current provisions of the Code, USL does not expect to incur federal income taxes on the earnings of the Separate Account to the extent that the earnings are credited under the contracts. As a result, no charge is currently made to the Separate Account for federal income taxes. The Separate Account is not treated as a regulated investment company under the Code. USL will periodically review changes in the tax law. USL retains the right to charge for any federal income tax incurred which is applicable to the Separate Account if the law is changed.

3.	Fair Value Measurements

Assets recorded at fair value in the Separate Account’s Statement of Assets and Liabilities are measured and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs:

•

Level 1— Fair value measurements based on quoted prices (unadjusted) in active markets that the Separate Account has the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. The Separate Account does not adjust the quoted price for such instruments.

•

Level 2— Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.

•

Level 3— Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair value positions in Level 3. The circumstances for these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, the Separate Account makes certain assumptions about the inputs a hypothetical market participant would use to value that asset or liability.

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The Separate Account assets measured at fair value as of December 31, 2023 consist of investments in registered mutual funds that generally trade daily and are measured at fair value using quoted prices in active markets for identical assets, which are classified as Level 1 throughout the year. As such, no transfers between fair value hierarchy levels occurred during the year. See the Schedule of Portfolio Investments for the table presenting information about assets measured at fair value on a recurring basis at December 31, 2023, and respective hierarchy levels.

4.	Expenses

Expense charges are applied against the current value of the Separate Account and are paid to USL as follows:

Separate Account Annual Charges: Deductions for the mortality and expense risk charges and distribution charges are calculated daily, at an annual rate, on the actual prior day’s net asset value of the underlying Funds comprising the sub-accounts attributable to the contract owners and are paid to USL. The mortality risk charge represents compensation to USL for the mortality risks assumed under the contract, which is the obligation to provide payments during the payout period for the life of the contract and to provide the standard death benefit. The expense risk charge represents compensation to USL for assuming the risk that the current contract administration charges will be insufficient to cover the cost of administering the contract in the future. The distribution expense charge covers all expenses associated with the distribution of the contract. These charges are included on the mortality and expense risk and administrative charges line in the Statements of Operations and Changes in Net Assets.

The exact rate depends on the particular product issued and the death benefits elected for each product. Expense charges for each product are as follows:



Products		Separate Account Annual Charges*

Seasons Elite		1.55%, 1.75%, 2.00% or 2.20%

Seasons Select II		1.40%, 1.60%, 1.80% or 2.05%

Seasons Triple Elite		1.55% or 1.75%

*	The distribution charge is deducted at an annual rate of 0.15 percent of the net asset value of each portfolio and is included in the respective separate account annual charge rate.

Contract Maintenance Charge: During the accumulation phase, an annual contract maintenance charge is assessed by USL on the contract anniversary. In the event of a full surrender, a contract maintenance charge is assessed at the date of surrender and deducted from the withdrawal proceeds. The contract maintenance charge represents a reimbursement of administrative expenses incurred by USL related to the establishment and maintenance of the record keeping function for the sub-accounts. These charges are included as part of the contract maintenance charges line in the Statements of Operations and Changes in Net Assets.

The contract maintenance charge is $30 for certain contracts ($35 for Seasons Elite).

Withdrawal Charge: A withdrawal charge is applicable to certain contract withdrawals pursuant to the contract and is payable to USL. The withdrawal charges are included as part of the payments for contract benefits or terminations line in the Statements of Operations and Changes in Net Assets.

Withdrawal charges may be assessed for withdrawals in excess of the free withdrawal amount as defined in the contracts. Withdrawal amounts in excess of the free withdrawal amount are assessed withdrawal charges based on tables of charges applicable to specific contracts.

The maximum withdrawal charge of 9 percent is assessed on amount withdrawn in excess of free withdrawals.

Transfer Fee: A transfer fee may be assessed on each transfer of funds in excess of the maximum transactions allowed within a contract year depending on the contract provision. The transfer fee is included as part of the payments for contract benefits or terminations line in the Statements of Operations and Changes in Net Assets.

Depending on the contract provisions, a transfer fee of $25 is assessed on each transfer in excess of the maximum transactions allowed for all products.

Premium Tax Charge: Certain states charge taxes on purchase payments up to a maximum of 3.50 percent. Some states assess premium taxes at the time of purchase payments, while some other states assess premium taxes when annuity payments begin or upon surrender. There are certain states that do not assess premium taxes. If the law of the state requires premium taxes to be paid when purchase payments are made, USL will deduct the tax from such payments prior to

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

depositing the payments into the Separate Account. Otherwise, such tax will be deducted from the account value when annuity payments begin. Premium taxes are included as part of the payments received from contract owners line in the Statements of Operations and Changes in Net Assets.

MarketLock, Marketlock for Two, MarketLock for Life Plus, MarketLock Income Plus, MarketLock for Life and Seasons Income Rewards Fee: These optional features provide a guaranteed withdrawal stream by locking in market gains during an applicable evaluation period.

•

MarketLock, MarketLock for Two and Seasons Income Rewards

The annual fee is calculated as a percentage of the maximum anniversary value benefit base and deducted quarterly from the contract value. The maximum anniversary value benefit base is calculated as the greater of eligible purchase payments received during the first two years, adjusted for withdrawals, or the maximum anniversary date contract value occurring in the first ten contract years, adjusted for withdrawals. The annual fee is included as part of the payments for contract benefits or terminations line in the Statements of Operations and Changes in Net Assets.

The withdrawal benefit base for Seasons Income Rewards is calculated as eligible purchase payments adjusted for withdrawals received during the first 90 days.

•

MarketLock for Life, MarketLock for Life Plus and MarketLock Income Plus

The annual fee is calculated as a percentage of the income base and deducted quarterly from the contract value. The income base is calculated as the greater of purchase payments made in the first contract year and purchase payments made in contract years 2-5, capped at 100 percent of purchase payments made in the first year plus a bonus, if eligible, or the highest anniversary date contract value less purchase payments made in years 2-5 greater than the purchase payments received in the first year. The annual fee is included as part of the payments for contract benefits or terminations line in the Statements of Operations and Changes in Net Assets.

The annual fees for the optional features discussed above are as follows (Note: If extension of the evaluation period is elected, an additional 0.10% – 0.25% is added to the Annual Fee):



Optional Features	Products Offered	Annual Fees
MarketLock	Seasons Elite	0.65%
	Seasons Select II
	Seasons Triple Elite
MarketLock for Two	Seasons Elite	0.40% prior to the first withdrawal
	Seasons Select II	0.80% after the first withdrawal
	Seasons Triple Elite
Seasons Income Rewards	Seasons Elite	0.65% in years zero to seven
	Seasons Select II	0.45% in years eight to ten
	Seasons Triple Elite
MarketLock for Life	Seasons Elite	0.95% for two covered persons
	Seasons Select II
MarketLock for Life Plus	Seasons Elite	0.90% to 1.25% for two covered persons
	Seasons Select II
MarketLock Income Plus	Seasons Elite	1.20% to 1.35% for two covered persons
	Seasons Select II

Seasons Promise Fee: The optional Seasons Promise Program provides a guaranteed minimum contract value at the end of ten full contract years. The fee is calculated as a percentage of the contract value minus purchase payments received after the 90^th day from the date of contract issuance and deducted quarterly from the contract value during the first ten full contract years. This optional feature is included as part of the payments for contract benefits or terminations line in the Statements of Operations and Changes in Net Assets.

The fee for the Seasons Promise Program ranges from 0.25 percent to 0.65 percent. This optional feature is offered under the Seasons Elite, Seasons Select II, and Seasons Triple Elite.

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

5.	Purchases and Sales of Investments

For the year ended December 31, 2023, the aggregate cost of purchases and proceeds from the sales of investments were:



Sub-accounts		Cost of Purchases			Proceeds from Sales

Fidelity VIP Contrafund Portfolio Service Class 2	$		52,850	$		76,030

Fidelity VIP Equity-Income Portfolio Service Class 2			12,002			20,311

Fidelity VIP Investment Grade Bond Portfolio Service Class 2			38,024			27,801

Fidelity VIP Mid Cap Portfolio Service Class 2			10,287			62,991

Fidelity VIP Overseas Portfolio Service Class 2			4,702			18,475

Goldman Sachs VIT Government Money Market Fund Service Shares			2,424			5,937

SST Balanced Growth Strategy Class 3			0			53,602

SST Conservative Growth Strategy Class 3			0			67,504

SST Growth Strategy Class 3			1,506			351,731

SST Moderate Growth Strategy Class 3			1,442			168,122

SST SA Allocation Balanced Portfolio Class 3			324,760			508,198

SST SA Allocation Growth Portfolio Class 3			408,017			371,539

SST SA Allocation Moderate Growth Portfolio Class 3			1,093,806			1,363,990

SST SA Allocation Moderate Portfolio Class 3			347,960			267,851

SST SA American Century Inflation Protection Portfolio Class 3			13,607			27,255

SST SA Columbia Focused Value Portfolio Class 3			34,324			37,021

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3			13,050			29,395

SST SA Multi-Managed International Equity Portfolio Class 3			17,048			63,335

SST SA Multi-Managed Large Cap Growth Portfolio Class 3			2,057			72,515

SST SA Multi-Managed Large Cap Value Portfolio Class 3			34,553			25,119

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3			1,138			33,125

SST SA Multi-Managed Mid Cap Value Portfolio Class 3			25,540			22,490

SST SA Multi-Managed Small Cap Portfolio Class 3			21,050			35,282

SAST SA AB Growth Portfolio Class 3			24,417			217,388

SAST SA American Funds Global Growth Portfolio Class 3			29,978			70,290

SAST SA American Funds Growth Portfolio Class 3			4,572			9,223

SAST SA American Funds Growth-Income Portfolio Class 3			10,807			16,416

SAST SA DFA Ultra Short Bond Portfolio Class 3			1,854			13,866

SAST SA VCP Dynamic Allocation Portfolio Class 3			338,956			178,496

SAST SA VCP Dynamic Strategy Portfolio Class 3			176,628			369,187

T Rowe Price Blue Chip Growth Portfolio II Class			0			19,981

T Rowe Price Equity Income Portfolio II Class			27,213			18,386

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

6.	Financial Highlights

The summary of unit values and units outstanding for sub-accounts, investment income ratios, total return and expense ratios, excluding expenses of the underlying mutual funds, for each of the five years in the period ended December 31, 2023 follows:



	December 31, 2023								For the Year Ended December 31, 2023
									Investment		Expense				Total
			Unit Value ($)^(a)(f)				Net		Income		Ratio (%)^(d)(f)				Return (%)^(e)(f)

Sub-accounts	Units		Lowest		Highest		Assets ($)^(b)		Ratio (%)^(c)		Lowest		Highest		Lowest		Highest

Fidelity VIP Contrafund Portfolio Service Class 2		10,770		31.42		33.23		347,009		0.26		1.40		1.75		30.82		31.27

Fidelity VIP Equity-Income Portfolio Service Class 2		6,580		22.29		23.55		152,226		1.66		1.40		1.75		8.47		8.85

Fidelity VIP Investment Grade Bond Portfolio Service Class 2		25,424		12.29		12.99		321,913		2.48		1.40		1.75		4.17		4.53

Fidelity VIP Mid Cap Portfolio Service Class 2		8,552		25.49		26.94		225,539		0.35		1.40		1.75		12.82		13.21

Fidelity VIP Overseas Portfolio Service Class 2		9,090		13.01		13.76		121,946		0.80		1.40		1.75		18.14		18.55

Goldman Sachs VIT Government Money Market Fund Service Shares		5,010				10.04		50,318		4.65				1.75				2.97

SST Balanced Growth Strategy Class 3		9,532		37.43		38.72		361,932		0.00		1.40		1.55		21.66		21.84

SST Conservative Growth Strategy Class 3		13,526		30.88		33.20		433,294		0.00		1.40		1.75		16.77		17.18

SST Growth Strategy Class 3		23,761		46.40		49.96		1,150,566		0.00		1.40		1.75		27.58		28.02

SST Moderate Growth Strategy Class 3		15,030		41.02		44.77		644,378		0.00		1.40		1.75		24.01		24.44

SST SA Allocation Balanced Portfolio Class 3		225,058		16.94		18.16		3,978,580		2.16		1.40		1.75		9.49		9.87

SST SA Allocation Growth Portfolio Class 3		169,415		22.25		23.79		3,942,890		2.09		1.40		1.75		15.16		15.57

SST SA Allocation Moderate Growth Portfolio Class 3		541,202		19.70		21.05		11,057,598		2.26		1.40		1.75		13.05		13.45

SST SA Allocation Moderate Portfolio Class 3		194,678		18.74		20.07		3,806,217		2.29		1.40		1.75		11.73		12.12

SST SA American Century Inflation Protection Portfolio Class 3		9,526		10.60		11.40		106,521		4.33		1.40		1.75		1.50		1.85

SST SA Columbia Focused Value Portfolio Class 3		5,671		41.10		44.96		236,283		1.17		1.40		1.75		3.52		3.88

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3		18,084		13.34		14.93		253,100		2.08		1.40		1.75		4.18		4.55

SST SA Multi-Managed International Equity Portfolio Class 3		36,633		13.22		14.27		498,055		2.00		1.40		1.75		13.84		14.23

SST SA Multi-Managed Large Cap Growth Portfolio Class 3		6,884		33.52		36.23		242,694		0.00		1.40		1.75		34.65		35.12

SST SA Multi-Managed Large Cap Value Portfolio Class 3		5,128		34.02		37.83		186,134		1.85		1.40		1.75		10.57		10.95

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3		10,520		57.90		62.59		647,678		0.00		1.40		1.75		18.95		19.36

SST SA Multi-Managed Mid Cap Value Portfolio Class 3		3,748		53.43		61.62		223,842		0.94		1.40		1.75		11.97		12.36

SST SA Multi-Managed Small Cap Portfolio Class 3		12,087		25.64		27.77		320,779		0.22		1.40		1.75		10.36		10.74

SAST SA AB Growth Portfolio Class 3		18,185		18.35		18.69		338,191		0.00		1.40		1.75		32.38		32.84

SAST SA American Funds Global Growth Portfolio Class 3		5,165		31.15		32.97		166,499		0.78		1.40		1.75		20.24		20.66

SAST SA American Funds Growth Portfolio Class 3		826		43.86		46.48		37,440		1.37		1.40		1.75		35.62		36.09

SAST SA American Funds Growth-Income Portfolio Class 3		3,361		31.42		33.26		109,615		2.17		1.40		1.75		23.67		24.10

SAST SA DFA Ultra Short Bond Portfolio Class 3		11,272		8.98		9.26		102,477		0.94		1.40		1.75		2.58		2.94

SAST SA VCP Dynamic Allocation Portfolio Class 3		99,023		16.45		17.11		1,667,025		2.33		1.40		1.75		11.53		11.92

SAST SA VCP Dynamic Strategy Portfolio Class 3		92,080		15.98		16.61		1,502,585		2.29		1.40		1.75		10.14		10.53

T Rowe Price Blue Chip Growth Portfolio II Class		2,368		40.03		42.27		99,244		0.00		1.40		1.75		46.38		46.89
T Rowe Price Equity Income Portfolio II Class		15,658		22.27		23.56		365,994		1.85		1.40		1.75		7.42		7.80


			December 31, 2022						For the Year Ended December 31, 2022
									Investment		Expense				Total
			Unit Value ($)^(a)(f)				Net		Income		Ratio (%)^(d)(f)				Return (%)^(e)(f)

Sub-accounts	Units		Lowest		Highest		Assets ($)^(b)		Ratio (%)^(c)		Lowest		Highest		Lowest		Highest

Fidelity VIP Contrafund Portfolio Service Class 2		11,909		24.02		25.31		290,943		0.20		1.40		1.75		-27.76		-27.51

Fidelity VIP Equity-Income Portfolio Service Class 2		7,174		20.55		21.63		152,767		1.60		1.40		1.75		-6.89		-6.56

Fidelity VIP Investment Grade Bond Portfolio Service Class 2		24,847		11.80		12.43		301,043		1.80		1.40		1.75		-14.72		-14.42

Fidelity VIP Mid Cap Portfolio Service Class 2		10,903		22.60		23.79		254,061		0.25		1.40		1.75		-16.44		-16.15

Fidelity VIP Overseas Portfolio Service Class 2		10,122		11.01		11.61		114,738		0.82		1.40		1.75		-25.99		-25.73

Goldman Sachs VIT Government Money Market Fund Service Shares		5,520				9.75		53,832		1.24				1.75				-0.38

SST Balanced Growth Strategy Class 3		10,917		30.77		31.78		340,862		0.00		1.40		1.55		-29.87		-29.76

SST Conservative Growth Strategy Class 3		15,561		26.45		28.33		426,717		0.00		1.40		1.75		-25.60		-25.34

SST Growth Strategy Class 3		31,735		36.37		39.02		1,198,186		0.00		1.40		1.75		-35.08		-34.86

SST Moderate Growth Strategy Class 3		19,385		33.08		35.97		665,670		0.00		1.40		1.75		-31.89		-31.65

SST SA Allocation Balanced Portfolio Class 3		250,168		15.47		16.53		4,027,608		2.39		1.40		1.75		-16.96		-16.67

SST SA Allocation Growth Portfolio Class 3		183,882		19.32		20.58		3,712,967		2.20		1.40		1.75		-18.94		-18.65

SST SA Allocation Moderate Growth Portfolio Class 3		603,641		17.43		18.56		10,884,016		2.56		1.40		1.75		-18.18		-17.90

SST SA Allocation Moderate Portfolio Class 3		205,699		16.77		17.90		3,592,598		2.54		1.40		1.75		-17.73		-17.44

SST SA American Century Inflation Protection Portfolio Class 3		11,165		10.44		11.19		122,005		2.15		1.40		1.75		-12.68		-12.38

SST SA Columbia Focused Value Portfolio Class 3		6,073		39.70		43.28		244,052		1.46		1.40		1.75		-3.71		-3.38

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3		19,383		12.81		14.28		260,269		1.74		1.40		1.75		-15.97		-15.68

SST SA Multi-Managed International Equity Portfolio Class 3		40,577		11.61		12.49		483,359		1.57		1.40		1.75		-18.02		-17.73

SST SA Multi-Managed Large Cap Growth Portfolio Class 3		9,028		24.89		26.81		235,784		0.00		1.40		1.75		-39.09		-38.88

SST SA Multi-Managed Large Cap Value Portfolio Class 3		5,606		30.77		34.10		183,024		1.43		1.40		1.75		-5.33		-5.00

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3		10,934		48.68		52.44		563,751		0.00		1.40		1.75		-30.22		-29.97

SST SA Multi-Managed Mid Cap Value Portfolio Class 3		3,997		47.72		54.84		211,265		0.48		1.40		1.75		-10.58		-10.27
SST SA Multi-Managed Small Cap Portfolio Class 3		12,942		23.23		25.08		310,636		0.12		1.40		1.75		-18.29		-18.01

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS (CONTINUED)


	December 31, 2022								For the Year Ended December 31, 2022
									Investment		Expense				Total
			Unit Value ($)^(a)(f)				Net		Income		Ratio (%)^(d)(f)				Return (%)^(e)(f)
Sub-accounts	Units		Lowest		Highest		Assets ($)^(b)		Ratio (%)^(c)		Lowest		Highest		Lowest		Highest

SAST SA AB Growth Portfolio Class 3		30,787		13.86		14.07		430,645		0.00		1.40		1.75		-30.02		-29.77

SAST SA American Funds Global Growth Portfolio Class 3		7,424		25.91		27.32		198,163		0.00		1.40		1.75		-26.27		-26.01

SAST SA American Funds Growth Portfolio Class 3		1,039		32.34		34.16		34,663		0.48		1.40		1.75		-31.30		-31.06

SAST SA American Funds Growth-Income Portfolio Class 3		3,862		25.40		26.80		101,650		0.81		1.40		1.75		-18.18		-17.90

SAST SA DFA Ultra Short Bond Portfolio Class 3		12,531		8.76		9.00		110,929		0.00		1.40		1.75		-3.56		-3.23

SAST SA VCP Dynamic Allocation Portfolio Class 3		93,532		14.75		15.28		1,413,770		2.21		1.40		1.75		-18.59		-18.30

SAST SA VCP Dynamic Strategy Portfolio Class 3		114,382		14.51		15.03		1,687,367		2.05		1.40		1.75		-16.01		-15.72

T Rowe Price Blue Chip Growth Portfolio II Class		2,901		27.34		28.78		82,750		0.00		1.40		1.75		-39.73		-39.52
T Rowe Price Equity Income Portfolio II Class		16,014		20.73		21.86		347,400		1.64		1.40		1.75		-5.26		-4.92

	December 31, 2021								For the Year Ended December 31, 2021
									Investment		Expense				Total
			Unit Value ($)^{(a) (f)}				Net		Income		Ratio (%)^{(d) (f)}				Return (%)^{(e) (f)}
Sub-accounts	Units		Lowest		Highest		Assets ($)^(b)		Ratio (%)^(c)		Lowest		Highest		Lowest		Highest

Fidelity VIP Contrafund Portfolio Service Class 2		16,816		33.25		34.92		568,975		0.03		1.40		1.75		25.30		25.74

Fidelity VIP Equity-Income Portfolio Service Class 2		8,511		22.07		23.15		194,055		1.69		1.40		1.75		22.44		22.87

Fidelity VIP Investment Grade Bond Portfolio Service Class 2		30,042		13.84		14.52		425,840		1.76		1.40		1.75		-2.62		-2.27

Fidelity VIP Mid Cap Portfolio Service Class 2		11,800		27.04		28.38		328,329		0.37		1.40		1.75		23.13		23.56

Fidelity VIP Overseas Portfolio Service Class 2		9,952		14.88		15.63		152,087		0.33		1.40		1.75		17.32		17.73

SST Balanced Growth Strategy Class 3		12,297		43.87		45.25		547,512		0.00		1.40		1.55		4.88		5.04

SST Conservative Growth Strategy Class 3		17,496		35.55		37.95		636,169		0.00		1.40		1.75		3.89		4.25

SST Growth Strategy Class 3		32,489		56.02		59.90		1,886,223		0.00		1.40		1.75		8.12		8.50

SST Moderate Growth Strategy Class 3		19,771		48.57		52.64		995,107		0.00		1.40		1.75		7.12		7.50

SST SA Allocation Balanced Portfolio Class 3		290,492		18.63		19.84		5,629,054		0.90		1.40		1.75		5.45		5.82

SST SA Allocation Growth Portfolio Class 3		187,525		23.84		25.30		4,660,654		2.05		1.40		1.75		13.68		14.08

SST SA Allocation Moderate Growth Portfolio Class 3		663,808		21.30		22.60		14,595,721		1.70		1.40		1.75		10.51		10.90

SST SA Allocation Moderate Portfolio Class 3		236,357		20.38		21.68		5,004,206		1.83		1.40		1.75		8.51		8.89

SST SA American Century Inflation Protection Portfolio Class 3		12,166		11.96		12.77		151,917		2.90		1.40		1.75		2.43		2.79

SST SA Columbia Focused Value Portfolio Class 3		7,538		41.23		44.79		316,150		3.82		1.40		1.75		23.13		23.56

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3		21,684		15.24		16.93		345,362		3.78		1.40		1.75		-3.39		-3.06

SST SA Multi-Managed International Equity Portfolio Class 3		43,599		14.17		15.18		633,146		2.55		1.40		1.75		9.00		9.38

SST SA Multi-Managed Large Cap Growth Portfolio Class 3		8,907		40.87		43.87		381,842		0.00		1.40		1.75		14.19		14.59

SST SA Multi-Managed Large Cap Value Portfolio Class 3		7,118		32.50		35.89		245,392		2.86		1.40		1.75		21.43		21.85

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3		10,684		69.76		74.89		788,689		0.00		1.40		1.75		7.27		7.65

SST SA Multi-Managed Mid Cap Value Portfolio Class 3		4,776		53.37		61.11		281,779		1.64		1.40		1.75		24.89		25.33

SST SA Multi-Managed Small Cap Portfolio Class 3		15,157		28.44		30.59		445,474		0.02		1.40		1.75		21.16		21.58

SAST SA AB Growth Portfolio Class 3		26,772		19.81		20.03		533,539		0.00		1.40		1.75		26.24		26.68

SAST SA American Funds Global Growth Portfolio Class 3		8,371		35.14		36.93		302,438		0.06		1.40		1.75		14.10		14.50

SAST SA American Funds Growth Portfolio Class 3		948		47.07		49.54		45,924		0.02		1.40		1.75		19.58		20.00

SAST SA American Funds Growth-Income Portfolio Class 3		4,243		31.05		32.64		136,247		0.96		1.40		1.75		21.54		21.96

SAST SA DFA Ultra Short Bond Portfolio Class 3		16,002		9.08		9.30		146,652		0.00		1.40		1.75		-2.50		-2.16

SAST SA VCP Dynamic Allocation Portfolio Class 3		108,090		18.11		18.71		1,999,229		1.54		1.40		1.75		7.41		7.79

SAST SA VCP Dynamic Strategy Portfolio Class 3		131,427		17.28		17.83		2,303,540		1.33		1.40		1.75		8.18		8.56

T Rowe Price Blue Chip Growth Portfolio II Class		2,975		45.37		47.58		140,638		0.00		1.40		1.75		15.29		15.70
T Rowe Price Equity Income Portfolio II Class		17,223		21.88		22.99		392,698		1.43		1.40		1.75		23.04		23.48


	December 31, 2020								For the Year Ended December 31, 2020
									Investment		Expense				Total
			Unit Value ($)^{(a) (f)}				Net		Income		Ratio (%)^{(d) (f)}				Return (%)^{(e) (f)}
Sub-accounts	Units		Lowest		Highest		Assets ($)^(b)		Ratio (%)^(c)		Lowest		Highest		Lowest		Highest

Fidelity VIP Contrafund Portfolio Service Class 2		20,005		26.53		27.77		539,209		0.08		1.40		1.75		27.98		28.42

Fidelity VIP Equity-Income Portfolio Service Class 2		9,663		18.02		18.84		179,473		1.52		1.40		1.75		4.59		4.96

Fidelity VIP Investment Grade Bond Portfolio Service Class 2		31,077		14.21		14.86		451,034		1.95		1.40		1.75		7.27		7.65

Fidelity VIP Mid Cap Portfolio Service Class 2		13,229		21.96		22.97		298,295		0.35		1.40		1.75		15.82		16.23

Fidelity VIP Overseas Portfolio Service Class 2		10,903		12.69		13.27		141,763		0.20		1.40		1.75		13.33		13.73

SST Balanced Growth Strategy Class 3		15,356		41.83		43.08		650,583		0.00		1.40		1.55		25.32		25.51

SST Conservative Growth Strategy Class 3		18,621		34.22		36.40		651,545		0.00		1.40		1.75		18.96		19.38

SST Growth Strategy Class 3		34,903		51.82		55.21		1,871,340		0.00		1.40		1.75		32.89		33.35

SST Moderate Growth Strategy Class 3		20,616		45.34		48.96		967,834		0.00		1.40		1.75		29.15		29.60

SST SA Allocation Balanced Portfolio Class 3		318,109		17.67		18.75		5,827,003		1.10		1.40		1.75		9.88		10.26

SST SA Allocation Growth Portfolio Class 3		191,144		20.97		22.18		4,169,395		0.00		1.40		1.75		14.10		14.50

SST SA Allocation Moderate Growth Portfolio Class 3		743,615		19.27		20.38		14,758,316		0.00		1.40		1.75		12.73		13.13

SST SA Allocation Moderate Portfolio Class 3		267,454		18.79		19.91		5,215,365		0.00		1.40		1.75		11.67		12.06

SST SA American Century Inflation Protection Portfolio Class 3		16,373		11.68		12.43		199,167		0.00		1.40		1.75		4.93		5.30
SST SA Columbia Focused Value Portfolio Class 3		8,744		33.49		36.25		298,496		0.00		1.40		1.75		5.49		5.86

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FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS (CONTINUED)


	December 31, 2020								For the Year Ended December 31, 2020
									Investment	Expense				Total
			Unit Value ($)^(a)(f)				Net		Income	Ratio (%)^{(d) (f)}				Return (%)^{(e) (f)}
Sub-accounts	Units		Lowest		Highest		Assets ($)^(b)		Ratio (%)^(c)	Lowest		Highest		Lowest		Highest

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3		22,326		15.78		17.47		367,520	0.00		1.40		1.75		5.71		6.08

SST SA Multi-Managed International Equity Portfolio Class 3		49,950		13.00		13.88		665,837	0.00		1.40		1.75		9.37		9.75

SST SA Multi-Managed Large Cap Growth Portfolio Class 3		23,571		35.79		38.28		888,956	0.00		1.40		1.75		45.88		46.39

SST SA Multi-Managed Large Cap Value Portfolio Class 3		11,775		26.76		29.45		332,730	0.00		1.40		1.75		-0.49		-0.15

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3		11,629		65.03		69.57		797,608	0.00		1.40		1.75		40.62		41.11

SST SA Multi-Managed Mid Cap Value Portfolio Class 3		10,094		42.73		48.76		480,655	0.00		1.40		1.75		3.61		3.98

SST SA Multi-Managed Small Cap Portfolio Class 3		18,460		23.47		25.16		446,968	0.00		1.40		1.75		9.95		10.33

SAST SA AB Growth Portfolio Class 3		65,600		15.69		15.82		1,035,832	0.00		1.40		1.75		32.94		33.41

SAST SA American Funds Global Growth Portfolio Class 3		9,272		30.79		32.25		292,759	0.05		1.40		1.75		27.83		28.28

SAST SA American Funds Growth Portfolio Class 3		1,055		39.37		41.29		42,641	0.40		1.40		1.75		49.09		49.61

SAST SA American Funds Growth-Income Portfolio Class 3		4,731		25.55		26.76		124,747	1.04		1.40		1.75		11.28		11.67

SAST SA DFA Ultra Short Bond Portfolio Class 3		20,365		9.31		9.50		191,122	1.46		1.40		1.75		-1.62		-1.28

SAST SA VCP Dynamic Allocation Portfolio Class 3		120,483		16.86		17.35		2,069,907	1.10		1.40		1.75		11.14		11.53

SAST SA VCP Dynamic Strategy Portfolio Class 3		145,036		15.97		16.42		2,346,896	1.14		1.40		1.75		8.28		8.66

T Rowe Price Blue Chip Growth Portfolio II Class		3,259		39.35		41.12		133,208	0.00		1.40		1.75		31.60		32.06

T Rowe Price Equity Income Portfolio II Class		18,236		17.78		18.62		336,703	1.89		1.40		1.75		-0.80		-0.45


	December 31, 2019								For the Year Ended December 31, 2019
									Investment	Expense				Total
			Unit Value ($)^{(a) (f)}				Net		Income	Ratio (%)^{(d) (f)}				Return (%)^{(e) (f)}
Sub-accounts	Units		Lowest		Highest		Assets ($)^(b)		Ratio(%)^(c)	Lowest		Highest		Lowest		Highest

Fidelity VIP Contrafund Portfolio Service Class 2		21,463		20.73		21.62		451,593	0.22		1.40		1.75		29.00		29.45

Fidelity VIP Equity-Income Portfolio Service Class 2		10,020		17.23		17.95		177,632	1.80		1.40		1.75		24.90		25.34

Fidelity VIP Investment Grade Bond Portfolio Service Class 2		32,988		13.24		13.81		445,811	2.27		1.40		1.75		7.51		7.88

Fidelity VIP Mid Cap Portfolio Service Class 2		16,337		18.96		19.76		318,095	0.68		1.40		1.75		21.04		21.46

Fidelity VIP Overseas Portfolio Service Class 2		12,613		11.19		11.67		144,395	1.51		1.40		1.75		25.29		25.73

SST Balanced Growth Strategy Class 3		16,756		33.38		34.32		566,327	0.00		1.40		1.55		16.83		17.00

SST Conservative Growth Strategy Class 3		22,697		28.76		30.49		670,321	0.00		1.40		1.75		14.38		14.78

SST Growth Strategy Class 3		42,552		38.99		41.40		1,712,494	0.00		1.40		1.75		20.42		20.84

SST Moderate Growth Strategy Class 3		22,291		35.10		37.78		810,258	0.00		1.40		1.75		18.72		19.14

SST SA Allocation Balanced Portfolio Class 3		354,432		16.08		17.00		5,903,822	1.50		1.40		1.75		14.01		14.41

SST SA Allocation Growth Portfolio Class 3		198,854		18.38		19.37		3,791,423	0.01		1.40		1.75		21.36		21.79

SST SA Allocation Moderate Growth Portfolio Class 3		823,580		17.10		18.02		14,464,560	1.37		1.40		1.75		18.51		18.93

SST SA Allocation Moderate Portfolio Class 3		289,809		16.82		17.77		5,048,293	1.48		1.40		1.75		16.69		17.09

SST SA American Century Inflation Protection Portfolio Class 3		18,325		11.13		11.80		211,760	0.33		1.40		1.75		3.70		4.07

SST SA Columbia Focused Value Portfolio Class 3		9,072		31.75		34.25		294,109	0.44		1.40		1.75		24.25		24.68

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3		28,756		14.93		16.46		446,919	2.43		1.40		1.75		7.43		7.81

SST SA Multi-Managed International Equity Portfolio Class 3		53,317		11.88		12.65		649,442	2.95		1.40		1.75		20.32		20.74

SST SA Multi-Managed Large Cap Growth Portfolio Class 3		27,776		24.54		26.15		714,683	0.21		1.40		1.75		27.91		28.36

SST SA Multi-Managed Large Cap Value Portfolio Class 3		13,166		26.90		29.50		373,345	2.21		1.40		1.75		26.19		26.63

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3		13,272		46.25		49.30		643,752	0.00		1.40		1.75		33.40		33.87

SST SA Multi-Managed Mid Cap Value Portfolio Class 3		10,701		41.24		46.90		489,440	1.09		1.40		1.75		22.90		23.33

SST SA Multi-Managed Small Cap Portfolio Class 3		21,717		21.35		22.80		477,094	0.00		1.40		1.75		22.09		22.52

SAST SA AB Growth Portfolio Class 3		69,207		11.80		11.85		819,682	0.00		1.40		1.75		32.21		32.68

SAST SA American Funds Global Growth Portfolio Class 3		12,699		24.09		25.14		314,245	0.80		1.40		1.75		32.59		33.05

SAST SA American Funds Growth Portfolio Class 3		3,832		26.40		27.60		104,990	0.00		1.40		1.75		28.13		28.58

SAST SA American Funds Growth-Income Portfolio Class 3		10,737		22.96		23.97		255,708	0.00		1.40		1.75		23.57		24.00

SAST SA DFA Ultra Short Bond Portfolio Class 3		25,388		9.47		9.63		241,966	1.49		1.40		1.75		0.22		0.57

SAST SA VCP Dynamic Allocation Portfolio Class 3		132,250		15.17		15.56		2,039,639	0.00		1.40		1.75		18.31		18.72

SAST SA VCP Dynamic Strategy Portfolio Class 3		153,554		14.75		15.11		2,291,200	0.00		1.40		1.75		17.34		17.75

T Rowe Price Blue Chip Growth Portfolio II Class		3,670		29.90		31.14		113,611	0.00		1.40		1.75		27.33		27.78

T Rowe Price Equity Income Portfolio II Class		18,647		17.92		18.70		346,038	2.08		1.40		1.75		23.86		24.29

(a)	Because the unit values are presented as a range of lowest to highest, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract unit values are not within the ranges presented.

(b)	These amounts represent the net asset value before adjustments allocated to the contracts in payout period.

(c)

These amounts represent the dividends, excluding distributions of capital gains, received by the sub-account from the Funds, net of management fees assessed by the portfolio manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the sub-account is affected by the timing of the declaration of dividends by the Funds in which the sub-account invests. The average net assets are calculated using the net asset balances at the beginning and end of the year. If there are no assets at either the beginning or end of the year, the asset balance of the first or last day the sub-account had assets is used.

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

FS VARIABLE ANNUITY ACCOUNT FIVE

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

(d)

These amounts represent the annualized contract expenses of the sub-account, consisting of distribution, mortality and expense charges, for each period indicated. The ratios include only those expenses that result in direct reduction to unit values. Charges made directly to the contract owners account through the redemption of units and expenses of the Funds have been excluded. For additional information on charges and deductions, see Note 4.

(e)

These amounts represent the total return for the periods indicated, including changes in the value of the Funds, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for each of the periods indicated or from the effective date through the end of the reporting period. Because the total return is presented as a range of minimum and maximum values, based on the product grouping representing the minimum and maximum expense ratios, some individual contract total returns are not within the ranges presented.

(f)	A blank in the lowest unit value, lowest expense ratio and lowest total return columns indicates that the lowest value is the same as the highest value.

7.	Subsequent Events

Management considered Separate Accounts related events and transactions that occurred after the date of the Statement of Assets and Liabilities, but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that required additional disclosures. Management has evaluated events through the date the financial statements were issued.

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

The United States Life Insurance Company in the

City of New York

(An indirect wholly owned subsidiary of Corebridge Financial, Inc.)

Statutory Financial Statements and

Supplemental Information and

Report of Independent Auditors

At December 31, 2023 and 2022 and

for each of the three years ended December 31, 2023

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

TABLE OF CONTENTS


STATUTORY FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION			Page

Report of Independent Auditors			2

Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus at December 31, 2023 and 2022			4

Statutory Statements of Operations for the Years Ended December 31, 2023, 2022 and 2021			6

Statutory Statements of Changes in Capital and Surplus for the Years Ended December 31, 2023, 2022 and 2021			7

Statutory Statements of Cash Flows for the Years Ended December 31, 2023, 2022 and 2021			8

Notes to Statutory Financial Statements			9

Supplemental Schedule of Selected Financial Data			62

Supplemental Investment Risks Interrogatories			64

Supplemental Summary Investment Schedule			70

Supplemental Schedule of Reinsurance Disclosures			71

Report of Independent Auditors

To the Board of Directors and Shareholder of The United States Life Insurance Company in the City of New York

Opinions

We have audited the accompanying statutory financial statements of The United States Life Insurance Company in the City of New York (the “Company”), which comprise the statutory statements of admitted assets, liabilities and capital and surplus as of December 31, 2023 and 2022, and the related statutory statements of operations, of changes in capital and surplus, and of cash flows for each of the three years in the period ended December 31, 2023, including the related notes (collectively referred to as the “financial statements”).

Unmodified Opinion on Statutory Basis of Accounting

In our opinion, the accompanying financial statements present fairly, in all material respects, the admitted assets, liabilities and capital and surplus of the Company as of December 31, 2023 and 2022 and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in accordance with the accounting practices prescribed or permitted by the New York State Department of Financial Services described in Note 2.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the accompanying financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2023 and 2022, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2023.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 2 to the financial statements, the financial statements are prepared by the Company on the basis of the accounting practices prescribed or permitted by the New York State Department of Financial Services, which is a basis of accounting other than accounting principles generally accepted in the United States of America.

The effects on the financial statements of the variances between the statutory basis of accounting described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the New York State Department of Financial Services. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date the financial statements are available to be issued.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with US GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with US GAAS, we:

•

Exercise professional judgment and maintain professional skepticism throughout the audit.

•

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

•

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

•

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Supplemental Information

Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental schedule of selected financial data, investment risks interrogatories, summary investment schedule, and schedule of reinsurance disclosures (collectively referred to as the “supplemental schedules”) of the Company as of December 31, 2023 and for the year then ended are presented to comply with the National Association of Insurance Commissioners’ Annual Statement Instructions and Accounting Practices and Procedures Manual and for purposes of additional analysis and are not a required part of the financial statements. The supplemental schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves and other additional procedures, in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental schedules are fairly stated, in all material respects, in relation to the financial statements taken as a whole.

/s/ PricewaterhouseCoopers LLP

New York, New York

April 18, 2024

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

STATUTORY STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND CAPITAL AND SURPLUS


	December 31,
(in millions)	2023		2022
Admitted assets
Cash and investments
Bonds	$	19,390	$	19,008
Preferred stock		45		27
Common stock		18		18
Cash, cash equivalents and short-term investments		227		389
Mortgage loans		3,876		3,906
Contract loans		132		141
Derivatives		46		91
Derivative cash collateral		63		196
Other invested assets		1,669		1,924
Total cash and investments		25,466		25,700
Amounts recoverable from reinsurers		25		49
Amounts receivable under reinsurance contracts		39		7
Current federal income tax recoverable		—		11
Deferred tax asset		168		186
Due and accrued investment income		209		196
Premiums due, deferred and uncollected		55		49
Receivables from affiliates		19		28
Other assets		7		30
Separate account assets		5,774		5,412
Total admitted assets	$	31,762	$	31,668

See accompanying Notes to Statutory Financial Statements.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

STATUTORY STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND CAPITAL AND SURPLUS (CONTINUED)


	December 31,
(in millions, except for share data)	2023		2022
Liabilities
Policy reserves and contractual liabilities
Life, annuity and modco reserves	$	21,767	$	22,128
Liabilities for deposit-type contracts		761		780
Accident and health reserves		191		207
Premiums received in advance		1		1
Policy and contract claims		106		125
Policyholder dividends		1		1
Total policy reserves and contractual liabilities		22,827		23,242
Experience rated refund		75		75
Payable to affiliates		18		36
Interest maintenance reserve		222		297
Federal income taxes payable		24		—
Derivatives		2		183
Repurchase agreements		—		20
Collateral for derivatives program		40		78
Accrued expenses and other liabilities		207		359
Net transfers from separate accounts due or accrued		(114)		(120)
Asset valuation reserve		448		453
Separate account liabilities		5,774		5,412
Total liabilities		29,523		30,035
Commitments and contingencies (see Note 20)

Capital and surplus
Common stock, $2 par value; 1,980,658 shares authorized, issued and outstanding		4		4
Gross paid-in and contributed surplus		1,913		1,913
Unassigned surplus		322		(284)
Total capital and surplus		2,239		1,633
Total liabilities and capital and surplus	$	31,762	$	31,668

See accompanying Notes to Statutory Financial Statements.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

STATUTORY STATEMENTS OF OPERATIONS


	December 31,
(in millions)	2023		2022		2021
Revenues
Premiums and annuity considerations	$	2,382	$	2,209	$	2,472
Net investment income		1,123		1,204		1,169
Amortization of interest maintenance reserve		17		28		32
Reserve adjustments on reinsurance ceded		(381)		(624)		(496)
Commissions and expense allowances		58		52		69
Separate account fees		114		124		138
Other income		25		18		27
Total revenues		3,338		3,011		3,411
Benefits and expenses
Death benefits		165		189		190
Annuity benefits		208		224		339
Surrender benefits		2,410		1,411		1,182
Other benefits		159		172		122
Change in reserves		(397)		674		111
Commissions		109		94		88
General insurance expenses		115		107		104
Net transfers to (from) separate accounts		(60)		(13)		847
Other expenses		4		16		15
Total benefits and expenses		2,713		2,874		2,998
Net gain from operations before dividends to policyholders and federal income taxes		625		137		413
Net gain from operations after dividends to policyholders and before federal income taxes		625		137		413
Federal income tax expense		46		143		132
Net gain (loss) from operations		579		(6)		281
Net realized capital gains (losses), net of tax after transfers to interest maintenance reserves		30		(72)		(103)
Net income (loss)	$	609	$	(78)	$	178

See accompanying Notes to Statutory Financial Statements.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

STATUTORY STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS


(in millions)	Common Stock		Gross Paid- In and Contributed Surplus		Unassigned Surplus			Total Capital and Surplus
Balance, January 1, 2021	$	4	$	1,913	$	(127	)	$	1,790
Net income (loss)		—		—		178			178
Change in net unrealized capital gains (losses)		—		—		200			200
Change in net unrealized foreign exchange capital gains (losses)		—		—		(46	)		(46	)
Change in deferred tax		—		—		50			50
Change in non-admitted assets		—		—		25			25
Change in liability for reinsurance in unauthorized and certified companies		—		—		(7	)		(7	)
Change in asset valuation reserve		—		—		(62	)		(62	)
Change in surplus from separate accounts		—		—		27			27
Other changes in surplus in separate accounts		—		—		(27	)		(27	)
Change in surplus as a result of reinsurance		—		—		(2	)		(2	)
Dividends		—		—		(101	)		(101	)
Prior period corrections		—		—		(5	)		(5	)
Balance, December 31, 2021	$	4	$	1,913	$	103		$	2,020
Net income (loss)		—		—		(78	)		(78	)
Change in net unrealized capital gains (losses)		—		—		(57	)		(57	)
Change in net unrealized foreign exchange capital gains (losses)		—		—		(101	)		(101	)
Change in deferred tax		—		—		95			95
Change in non-admitted assets		—		—		(90	)		(90	)
Change in asset valuation reserve		—		—		39			39
Change in surplus from separate accounts		—		—		9			9
Other changes in surplus in separate accounts		—		—		(9	)		(9	)
Change in surplus as a result of reinsurance		—		—		(2	)		(2	)
Dividends		—		—		(200	)		(200	)
Prior period corrections		—		—		7			7
Balance, December 31, 2022	$	4	$	1,913	$	(284	)	$	1,633
Net income (loss)		—		—		609			609
Change in net unrealized capital gains (losses)		—		—		(25	)		(25	)
Change in net unrealized foreign exchange capital gains (losses)		—		—		59			59
Change in deferred tax		—		—		(64	)		(64	)
Change in non-admitted assets		—		—		24			24
Change in liability for reinsurance in unauthorized and certified companies		—		—		7			7
Change in asset valuation reserve		—		—		6			6
Change in surplus from separate accounts		—		—		10			10
Other changes in surplus in separate accounts		—		—		(10	)		(10	)
Change in surplus as a result of reinsurance		—		—		(2	)		(2	)
Dividends		—		—		—			—
Prior period corrections		—		—		(8	)		(8	)
Balance, December 31, 2023	$	4	$	1,913	$	322		$	2,239

See accompanying Notes to Statutory Financial Statements.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

STATUTORY STATEMENTS OF CASH FLOWS


	December 31,
(in millions)	2023		2022		2021
Cash from operations
Premium and annuity considerations, collected, net of reinsurance	$	2,382	$	2,196	$	1,996
Net investment income collected		1,035		1,242		1,062
Other income		(181)		(430)		(262)
Total revenue received		3,236		3,008		2,796
Benefits paid		2,948		1,792		1,811
Net transfers from (to) separate accounts		(9)		(20)		896
Commissions and expenses paid		236		211		198
Dividends paid to policyholders		1		—		1
Federal income taxes paid		21		109		123
Total benefits and expenses paid		3,197		2,092		3,029
Net cash provided by (used in) operations		39		916		(233)
Cash from investments
Proceeds from investments sold, matured or repaid:
Bonds		1,421		2,640		4,630
Stocks		9		10		6
Mortgage loans		424		469		307
Other invested assets		422		667		587
Derivatives		—		102		—
Securities lending reinvested collateral assets		—		258		37
Other, net		(11)				27
Total proceeds from investments sold, matured or repaid		2,265		4,146		5,594
Cost of investments acquired:
Bonds		1,783		1,978		4,042
Stocks		22		19		2
Mortgage loans		322		1,243		325
Other invested assets		372		895		829
Derivatives		58		—		—
Other, net		(133)		24		76
Total cost of investments acquired		2,424		4,159		5,274
Net adjustment in contract loans		(9)		(7)		(12)
Net cash provided by (used in) investing activities		(150)		(6)		332
Cash from financing and miscellaneous sources
Cash provided (applied):
Capital and paid-in surplus		(2)		(2)		(2)
Net deposits on (withdrawals from) deposit-type contracts		(18)		(2)		(2)
Dividends to parent		—		(200)		(101)
Change in securities lending		—		(261)		—
Other, net		(31)		(233)		(22)
Net cash provided by (used in) financing and miscellaneous activities		(51)		(698)		(127)
Net increase (decrease) in cash, cash equivalents and short-term investments		(162)		212		(28)
Cash, cash equivalents and short-term investments at beginning of year		389		177		205
Cash, cash equivalents and short-term investments at end of year	$	227	$	389	$	177

Non-cash activities, excluded from above:
Non-cash pension risk transfer premiums	$	—	$	—	$	480
Non-cash Modco to FRL settlements		187		—		—
Non-cash transfer from collateral other invested assets to bonds		137		—		—
Non-cash transfer from separate to general account		58		—		—
Non-cash transfer from other invested assets to mortgage loans		47		—		2
Non-cash premium transfer from AGL to USL		—		—		4
Non-cash transfer from common stock to other invested assets		—		3		3
Non-cash transfer from other invested assets to common stock		2		—		—

See accompanying Notes to Statutory Financial Statements.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS

1. NATURE OF OPERATIONS

The United States Life Insurance Company in the City of New York (“USL” or the “Company”) is a wholly owned subsidiary of AGC Life Insurance Company (“AGC Life” or the “Parent”), a Missouri-domiciled life insurance company, which is wholly owned by Corebridge Life Holdings, Inc. (formerly known as AIG Life Holdings, Inc.) (“Corebridge Life Holdings”). Corebridge Life Holdings is wholly owned by Corebridge Financial, Inc. (“Corebridge”), which American International Group, Inc. (“AIG”) owns 52.2% of their outstanding common stock as of December 31, 2023. AIG is a holding company, which through its subsidiaries provides a wide range of property casualty insurance, life insurance, retirement products and other financial services to commercial and individual customers in more than 190 countries and jurisdictions. The term “AIG” means American International Group, Inc. and not any of AIG’s consolidated subsidiaries.

The Company is a stock life insurance company domiciled and licensed under the laws of the State of New York and is subject to regulation by the New York State Department of Financial Services (“NYDFS”). The Company is also subject to regulation by the states in which it is authorized to transact business. The Company is licensed to sell life and accident and health insurance in all 50 states and the District of Columbia. The Company is also licensed in the U.S. Virgin Islands.

The Company’s fixed annuity products include single premium fixed annuities, immediate annuities and deferred income annuities. The Company’s variable annuity products include variable annuities that offer a combination of growth potential, death benefit features and income protection features. The Company’s fixed index annuities include products that provide growth potential based in part on the performance of a market index, and certain of the Company’s fixed index annuity products offer optional income protection features. The Company also offers pension risk transfer annuities. The Company’s distribution channels include banks, wirehouses, broker dealers, independent marketing organizations and independent insurance agents.

The Company’s individual life insurance products are primarily term life and universal life insurance, distributed through independent marketing organizations, independent insurance agents, financial advisors and direct marketing.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The financial statements of the Company are presented on the basis of accounting practices prescribed or permitted by the NYDFS. These accounting practices vary in certain respects from accounting principles generally accepted in the United States of America (“U.S. GAAP”), as described herein.

The NYDFS recognizes only statutory accounting practices (“SAP”) prescribed or permitted by the State of New York for determining and reporting the financial condition and results of operations of an insurance company and for determining its solvency under New York Insurance Law. The National Association of Insurance Commissioners’ (“NAIC”) Accounting Practices and Procedures Manual (“NAIC SAP”) has been adopted as a component of prescribed or permitted practices by the State of New York. The State of New York has the right to permit other specific practices that deviate from prescribed practices.

The Company does not employ any prescribed or permitted accounting practices that differ from the NAIC SAP.

Certain prior year amounts have been reclassified to conform to the current year presentation.

The statement of cash flows in this report has balances that are different from those in the annual statement filed with the NAIC. The annual statement for 2023 had net cash provided by operations, investments and financing of $92 million, $(304) million and $49 million, respectively, while this report has $39 million, $(150) million and $(51) million, respectively.

Use of Estimates

The preparation of financial statements in conformity with accounting practices prescribed or permitted by the NYDFS requires management to make estimates and assumptions that affect the reported amounts in the statutory financial statements and the accompanying notes. It also requires disclosure of contingent assets and liabilities at the date of the statutory financial statements and the reported amounts of revenue and expense during the period. The areas of significant judgments and estimates include the following:

•

application of other-than-temporary impairments;

•

estimates with respect to income taxes, including recoverability of deferred tax assets;

•

fair value measurements of certain financial assets; and

•

policy reserves for life, annuity and accident and health insurance contracts, including guarantees.

These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, the Company’s Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus, Statutory Statements of Operations and Statutory Statements of Cash Flows could be materially affected.

Significant Accounting Policies

Bonds not backed by other loans are carried at amortized cost except for those with a NAIC designation of “6” or “6*”. Bonds with a NAIC 6 designation are carried at the lower of amortized cost or fair value, with unrealized losses charged directly to unassigned surplus. Bonds that have not been filed and have not received a designation in over one year from the NAIC’s Investment Analysis Office (“IAO”) receive a “6*” designation and are carried at zero, with the unrealized loss charged directly to unassigned surplus. Bonds filed with the IAO which receive a “6*” designation may carry a value greater than zero. Securities are assigned a NAIC 5* designation if the Company certifies that (1) the documentation necessary to permit a full credit analysis does not exist, (2) the issuer or obligor is current on all contracted interest and principal payments and (3) the Company has an actual expectation of ultimate repayment of all contracted interest and principal. Securities with NAIC 5* designations are deemed to possess the credit characteristics of securities assigned a NAIC 5 designation. The discount or premium on bonds is amortized using the effective yield method.

Loan-backed and structured securities (“LBaSS”) include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”), asset-backed securities (“ABS”), pass-thru securities, lease-backed securities,

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

equipment trust certificates, loan-backed securities issued by special purpose corporations or trusts, and securities where there is not direct recourse to the issuer. LBaSS are carried on a basis consistent with that of bonds not backed by loans. Income recognition for LBaSS is determined using the effective yield method and estimated cash flows. Prepayment assumptions for single-class and multi-class mortgage-backed securities (“MBS”) and ABS were obtained from an outside vendor or internal estimates. The Company uses independent pricing services and broker quotes in determining the fair value of its LBaSS. The Company uses the retrospective adjustment method to account for the effect of unscheduled payments affecting high credit quality securities, while securities with less than high credit quality and securities for which the collection of all contractual cash flows is not probable are both accounted for using the prospective adjustment method.

Reference to “non-rated residual tranches or interests” intends to capture securitization tranches, beneficial interests, interests of structured finance investments, as well as other structures that reflect loss layers without contractual interest or principal payments. Payments to holders of these investments occur after contractual interest and principal payments have been made to other tranches or interests and are based on the remaining available funds. Although payments to holders can occur throughout an investment’s duration (and not just at maturity), such instances still reflect the residual amount permitted to be distributed after other holders have received contractual interest and principal payments.

NAIC designations are determined with a multi-step approach. The initial designation is used to determine the carrying value of the security. The final NAIC designation is used for reporting and affects risk-based capital (“RBC”). The final NAIC designation is determined for most RMBS and CMBS by financial modeling conducted by BlackRock. For credit tenant loans, equipment trust certificates, any corporate-like securities rated by the IAO, interest-only securities, and those securities with an original NAIC designation of 5, 5*, 6, or 6*, the final NAIC designation is based on the IAO or Credit Rating Provider rating and is not subject to financial modeling.

Redeemable preferred stocks with NAIC designations of “1” through “3” are carried at amortized cost. All other redeemable preferred stocks are stated at the lower of cost, amortized cost or fair value, with unrealized capital losses charged directly to unassigned surplus. Perpetual preferred stocks are valued at fair value, not to exceed any currently effective call price. Provisions made for impairment are recorded as realized capital losses when declines in fair value are determined to be other than temporary.

Unaffiliated common stocks are carried at fair value, with unrealized capital gains and losses credited or charged directly to unassigned surplus. Provisions made for impairment are recorded as realized capital losses when declines in fair value are determined to be other than temporary. For Federal Home Loan Bank (“FHLB”) capital stock, which is only redeemable at par, the fair value shall be presumed to be par, unless considered other-than-temporarily impaired.

Subsidiary, controlled, and affiliated (“SCA”) entities: The Company has no investments in insurance SCA entities. Investments in non-insurance SCA entities are recorded based on the equity of the investee per audited financial statements prepared pursuant to U.S. GAAP, which is adjusted to a statutory basis of accounting, if applicable. All investments in non-insurance SCA entities for which audited U.S. GAAP financial statements are not available are non-admitted as assets. Undistributed equity in earnings of affiliates is included in unassigned surplus as a component of unrealized capital gains or losses. Dividends received from such affiliates are recorded as investment income when declared.

Mortgage and mezzanine real estate loans are carried at unpaid principal balances less allowances for credit losses and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on performing loans is accrued as earned.

Mortgage and mezzanine real estate loans are considered impaired when collection of all amounts due under contractual terms is not probable. Impairment is measured using either i) the present value of expected future cash flows discounted at the loan’s effective interest rate, ii) the loan’s observable market price, if available, or iii) the fair value of the collateral if the loan is collateral dependent. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on statistical models primarily driven by past due status, debt service coverage, loan-to-value ratio, property occupancy, profile of the borrower and of the major property tenants, and economic trends in the market where the property is located. When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the carrying amount of the loan is charged off against the allowance.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Cash, cash equivalents and short-term investments include cash on hand and amounts due from banks, highly liquid debt instruments that have original maturities within one year of date of purchase and are carried at amortized cost, interest-bearing money market funds, investment pools and other investments with original maturities within one year from the date of purchase.

Contract loans are carried at unpaid balances, which include unpaid principal plus accrued interest, including 90 days or more past due. All loan amounts in excess of the contract cash surrender value are considered non-admitted assets.

Derivative instruments used in hedging transactions that meet the criteria of a highly effective hedge are reported in a manner consistent with the hedged asset or liability (“hedge accounting”). Changes in statement value or cash flow of derivatives that qualify for hedge accounting are recorded consistently with how the changes in the statement value or cash flow of the hedged asset or liability are recorded. Derivative instruments used in hedging transactions that do not meet or no longer meet the criteria of an effective hedge (“ineffective hedges”) are accounted for at fair value and the changes in fair value are recorded as unrealized gains or losses.

Starting in 2022 the Company designated, under Statement of Statutory Accounting Principles (“SSAP”) 86, Derivatives, certain foreign exchange derivatives as effective hedges of certain invested assets. Starting in 2023, the Company elected fair value hedge accounting for the hedge of a portfolio of similar assets using the “portfolio layer method.” The portfolio layer method represents a new method of achieving hedge accounting that had recently been adopted for statutory reporting purposes pursuant to guidance in SSAP 86.

Other invested assets principally consist of investments in limited partnerships and limited liability companies. Investments in these assets, except for joint ventures, partnerships and limited liability companies with a minor ownership interest, are reported using the equity method. Under SAP, such investments are generally reported based on audited U.S. GAAP equity of the investee, with subsequent adjustment to a statutory basis of accounting, if applicable.

Joint ventures, partnerships and limited liability companies in which the Company has a minor ownership interest (i.e., less than 10 percent) or lacks control, are generally recorded based on the underlying audited U.S. GAAP equity of the investee, with some prescribed exceptions. SAP allows the use of (a) the U.S. GAAP equity as set forth in the footnote reconciliation of foreign GAAP equity and income to U.S. GAAP within audited foreign GAAP financial statements or (b) the International Financial Reporting Standards (“IFRS”) basis equity in audited IFRS financial statements as an acceptable basis for the valuation of minor/non-controlled investments. The audited U.S. tax basis equity may also be used in certain circumstances.

All other investments in entities for which audited U.S. GAAP financial statements, or another acceptable audited basis of accounting as described above were not available have been non-admitted as assets. Undistributed accumulated earnings of such entities are included in unassigned surplus as a component of unrealized capital gains or losses. Distributions received that are not in excess of the undistributed accumulated earnings are recognized as investment income. Impairments that are determined to be other than temporary are recognized as realized capital losses.

Securities lending and repurchase agreements: The Company has a securities lending program, which was approved by its Board of Directors, and lends securities from its investment portfolio to supplement liquidity or for other uses as deemed appropriate by management. Under the program, securities are lent to financial institutions, and in return the Company receives cash as collateral equal to 102 percent of the fair value of the loaned securities. The cash collateral received is invested in cash and/or short-term investments that may be sold or repledged or partially used for short-term liquidity purposes based on conservative cash flow forecasts. Securities lent by the Company under these transactions may be sold or repledged by the counterparties. The liability for cash collateral received would be reported in payable for securities lending in the Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus. The Company monitors the fair value of securities loaned and obtains additional collateral as necessary. At the termination of the transactions, the Company and its counterparties are obligated to return the collateral provided and the securities lent, respectively. These transactions are treated as secured financing arrangements.

In addition, the Company is a party to secured financing transactions involving securities sold under agreements to repurchase (repurchase agreements), in which the Company transfers securities in exchange for cash, with an agreement by the Company to repurchase the same or substantially similar securities on agreed upon dates specified in the agreements.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Investment income due and accrued is non-admitted from investment income for bonds and other invested assets when collection of interest is overdue by more than 90 days, or is uncertain, and for mortgage loans when loans are foreclosed, or delinquent in payment for greater than 180 days, or when collection of interest is uncertain.

Net realized capital gains and losses, which are determined by using the specific identification method, are reflected in income net of applicable federal income taxes and transfers to the interest maintenance reserve.

The Company regularly evaluates its investments for other-than-temporary impairment (“OTTI”) in value. The determination that a security has incurred an OTTI in value and the amount of any loss recognition requires the judgment of the Company’s management and a continual review of its investments. For bonds, other than LBaSS, an OTTI shall be considered to have occurred if it is probable that the Company will not be able to collect all amounts due under the contractual terms in effect at the acquisition date of the debt security. If it is determined an OTTI has occurred, the cost basis of bonds are written down to fair value and the amount of the write-down is recognized as a realized capital loss.

For LBaSS, a non-interest related OTTI resulting from a decline in value due to fundamental credit problems of the issuer is recognized when the projected discounted cash flows for a particular security are less than its amortized cost. When a non-interest related OTTI occurs, the LBaSS is written down to the present value of future cash flows expected to be collected. An OTTI is also deemed to have occurred if the Company intends to sell the LBaSS or does not have the intent and ability to retain the LBaSS until recovery. If the decline is interest-related, the LBaSS is written down to fair value.

In periods subsequent to the recognition of an OTTI loss, the Company generally accretes the difference between the new cost basis and the future cash flows expected to be collected, if applicable, as interest income over the remaining life of the security based on the amount and timing of estimated future cash flows.

Non-admitted assets are excluded from admitted assets and the change in the aggregate amount of such assets is reflected as a separate component of unassigned surplus. Non-admitted assets include all assets specifically designated as non-admitted and assets not designated as admitted, such as a certain portion of DTAs, prepaid expenses, electronic data processing (“EDP”) equipment assets, agents’ balances or other receivables over 90 days. Non-admitted assets were $655 million and $679 million at December 31, 2023 and 2022, respectively.

Interest maintenance reserve (“IMR”) is calculated based on methods prescribed by the NAIC and was established to prevent large fluctuations in interest-related investment gains and losses resulting from sales (net of taxes) and interest-related OTTI (net of taxes). IMR applies to all types of fixed maturity investments, including bonds, preferred stocks, MBS, ABS and mortgage loans. An OTTI occurs when the Company, at the reporting date, has the intent to sell an investment or does not have the intent and ability to hold the security before recovery of the cost of the investment. For LBaSS, if the Company recognizes an interest-related OTTI, the non-interest-related OTTI is recorded to the asset valuation reserve, and the interest-related portion to IMR. Such gains and losses are deferred into the IMR and amortized into income using the grouped method over the remaining contractual lives of the securities sold.

Asset valuation reserve (“AVR”) is used to stabilize surplus from fluctuations in the market value of bonds, stocks, mortgage loans, real estate, limited partnerships and other investments. Changes in the AVR are recorded as direct increases or decreases in surplus.

Separate account assets and liabilities generally represent funds for which the contract holder, rather than the Company, bears the investment risk. Separate account contract holders have no claim against the assets of the general account of the Company, except for certain guaranteed products. Separate account assets are generally reported at fair value. In addition, certain products with fixed guarantees and market-value-adjusted (“MVA”) fixed annuity contracts in which the assets are generally carried at amortized cost are required by certain states to be carried in a separate account. The operations of the separate accounts are excluded from the Statutory Statements of Operations and Statutory Statements of Cash Flows of the Company. The Company receives fees for assuming mortality and certain expense risks. Such fees are included in separate account fees in the Statutory Statements of Operations. Reserves for variable annuity contracts are provided in accordance with the Variable Annuity Commissioners’ Annuity Reserve Valuation Method (“VACARVM”) under subsection 21 of the Valuation Manual (“VM-21”). Reserves for variable universal life accounts are provided in accordance with subsection 20 of the Valuation Manual (“VM-20”) for new business issued beginning in 2020, and in accordance with the Commissioners’ Reserve Valuation Method (“CRVM”) for policies issued prior to 2020.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Policy reserves are established according to different methods.

Life, annuity, and health reserves are developed by actuarial methods and are generally determined based on published tables using specified interest rates, mortality or morbidity assumptions, and valuation methods prescribed or permitted by statutes that will provide, in the aggregate, reserves that are greater than or equal to the minimum or guaranteed policy cash values or the amounts required by the NYDFS.

Principle-based reserving (“PBR”) is designed to tailor the reserving process to more closely reflect the risks of specific products, rather than the previous prescribed approach. Reserve requirements for the Company’s life insurance policies issued after January 1, 2020 are contained in VM-20, Requirements for Principle-Based Reserves for Life Products, policies issued prior to 2020 are reserved for using the CRVM. Under VM-20, these reserves are generally more sensitive to changes in actuarial assumptions. The Company’s regulatory reserving practices are governed by New York Regulation 213 which entails some potential deviations from the PBR reserving guidance in VM-20. Under this Regulation, the reserves for term life policies are equal to the greater of i) 70% of the CRVM determined policy level reserve and ii) the PBR (VM-20) reserve, while required universal life reserves are equal to the greater of i) CRVM established reserves and ii) PBR reserves.

The Company waives the deduction of deferred fractional premiums on the death of the life and annuity policy insured and for traditional life insurance returns any portion of the final premium for periods beyond the date of death. The Company reported additional reserves for surrender values in excess of the corresponding policy reserves.

The Company performs annual cash flow testing in accordance with the Actuarial Opinion and Memorandum Regulation to ensure adequacy of the reserves. Additional reserves are established where the results of cash flow testing under various interest rate scenarios indicate the need for such reserves or where the net premiums exceed the gross premiums on any insurance in force. Total cash flow testing reserves were $1.0 billion and $1.4 billion at December 31, 2023 and 2022, respectively.

A majority of the Company’s variable annuity products are issued with a guaranteed minimum death benefit (“GMDB”) which provides that, upon the death of a contractholder, the contractholder’s beneficiary will receive the greater of (1) the contractholder’s account value, or (2) a GMDB that varies by product. Depending on the product, the GMDB may equal the principal invested, adjusted for withdrawals; or the greatest contract value, adjusted for withdrawals, at the specified contract anniversaries; or the principal invested, adjusted for withdrawals, accumulated at the specified rate per annum. These benefits have issue age and other restrictions to reduce mortality risk exposure. The Company bears the risk that death claims following a decline in the financial markets may exceed contract holder account balances, and that the fees collected under the contract are insufficient to cover the costs of the benefit to be provided. Death benefits on GMDB policies generally reduce on a proportional basis or on a dollar-for-dollar basis when a partial withdrawal occurs.

Reserves for GMDB benefits are included in the VACARVM reserve. Variable Annuity (“VA”) reserving requirements are contained in VM-21, Reserves for Variable Requirements for Principle-Based Annuities.

Life policies underwritten as substandard are charged extra premiums. Reserves are computed for a substandard policy by adding the reserve for an otherwise identical non-substandard policy plus a factor times the extra premium charge for the year. The factor varies by duration, type of plan, and underwriting. In addition, an extra mortality reserve is reported for ordinary life insurance policies classified as group conversions. Substandard structured settlement annuity reserves are determined by making a constant addition to the mortality rate of the applicable valuation mortality table so that the life expectancy on the adjusted table is equal to the life expectancy determined by the Company’s underwriters at issue.

The liabilities related to policyholder funds left on deposit with the Company generally are equal to fund balances less applicable surrender charges.

In addition, an extra mortality reserve is held for ordinary life insurance policies classified as group conversions, equal to the excess, if any, of a substandard reserve over a standard reserve based on mortality rates appropriately increased over the standard class mortality rates.

Tabular interest, tabular less actual reserves released, and tabular cost have been determined by formula, except for universal life insurance and deferred annuity reserves, which include fund accumulations for which tabular interest has been determined from basic data. For the determination of tabular interest on funds not involving life contingencies, the actual credited interest is used.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

For long-term disability products, disabled life reserves were established using the 1964 Commissioner’s Disability Table for claims incurred prior to January 1, 1989, and the 1987 Commissioner’s Group Disability Table for claims incurred January 1, 1989 and later, at an interest rate equal to the Single Premium Immediate Annuity rate (based on year incurred) less 1 percent.

Liabilities for deposit-type contracts, which include supplementary contracts without life contingencies and annuities certain, are based on the discounting of future payments at an annual statutory effective rate. Tabular interest on other funds not involving life contingencies is based on the interest rate at which the liability accrues.

Policy and contract claims represent the ultimate net cost of all reported and unreported claims incurred during the year. Reserves for unpaid claims are estimated using individual case-basis valuations and statistical analyses. Those estimates are subject to the effects of trends in claim severity and frequency. The estimates are continually reviewed and adjusted as necessary, as experience develops or new information becomes known; such adjustments are included in current operations.

Reserves for future policy benefits to be paid on life and accident and health policies, incurred in the statement period, but not yet reported, were established using historical data from claim lag experience. The data is aggregated from product specific studies performed on the Company’s business.

Premiums and annuity considerations and related expenses are recognized over different periods. Life premiums are recognized as income over the premium paying periods of the related policies. Annuity considerations are recognized as revenue when received. Premiums for deposit-type products are credited directly to the respective reserves and are not recorded in the Statutory Statement of Operations. Acquisition costs such as commissions and other expenses related to the production of new business are charged to the Statutory Statements of Operations as incurred.

Reinsurance premiums and benefits paid or provided are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts.

Annuity and deposit-type contract surrender benefits are reported on a cash basis, and include annuity benefits, payments under supplementary contracts with life contingencies, surrenders and withdrawals. Withdrawals from deposit-type contracts directly reduce the liability for deposit-type contracts and are not reported in the Statutory Statements of Operations.

General insurance expenses include allocated expenses pursuant to cost allocation agreements. The Company purchases administrative, accounting, marketing and data processing services from AIG, Corebridge and affiliates and is charged based on estimated levels of usage, transactions or time incurred in providing the respective services. The allocation of costs for investment management services purchased from affiliates is based on the level of assets under management.

Federal income tax expense (benefit) is recognized and computed on a separate company basis pursuant to tax sharing agreements, because the Company is included in the consolidated federal income tax returns of its parent company filing group. For the period prior to the Corebridge initial public offering (the “IPO”) on September 19, 2022, the Company joined in the filing of a consolidated federal income tax return with AIG. For the period following the IPO, the Company will join with AGC Life, American General Life Insurance Company (“AGL”), Variable Annuity Life Insurance Company (“VALIC”), and Corebridge Insurance Company of Bermuda, Ltd. (formerly AIG Life of Bermuda, Ltd.) (“Corebridge Bermuda”), in filing a consolidated life company federal income tax return. To the extent that benefits for net operating losses, foreign tax credits, corporate alternative minimum tax (“CAMT”) credits or net capital losses are utilized on a consolidated basis, the Company would recognize tax benefits based upon the amount of those deductions and credits utilized in the consolidated federal income tax return. The federal income tax expense or benefit reflected in the Statutory Statements of Operations represents income taxes provided on income that is currently taxable, but excludes tax on the net realized capital gains or losses.

Income taxes on capital gains or losses reflect differences in the recognition of capital gains or losses on a statutory accounting basis versus a tax accounting basis. The most significant of such differences involve impairments of investments, which are recorded as realized losses in the Statutory Statements of Operations but are not recognized for tax purposes, and the deferral of net capital gains and losses into the IMR for statutory income but not for taxable income. Capital gains and losses on certain related-party transactions are recognized for statutory financial reporting purposes but are deferred for income tax reporting purposes until the security is sold to an outside party.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

A deferred tax asset (“DTA”) or deferred tax liability (“DTL”) is included in the Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus, which reflects the expected future tax consequences of temporary differences between the statement values of assets and liabilities for statutory financial reporting purposes and the amounts used for income tax reporting purposes. The change in the net DTA or DTL is reflected in a separate component of unassigned surplus. Net DTAs are limited in their admissibility.

The CAMT is disregarded when evaluating the need for a valuation allowance for the Company’s non-CAMT DTAs.

Accounting Changes

SSAP No. 86, Derivatives, was revised to adopt with modification derivative guidance from ASU 2017-12, Derivatives and Hedging and ASU 2022-01, Fair Value Hedging – Portfolio Layer Method, to include guidance for the portfolio layer method and partial-term hedges. These revisions were effective January 1, 2023. A partial-term hedge is a hedge for a portion of the time to maturity of a fixed rate asset (liabilities are not included contrary to U.S. GAAP). The portfolio layer method permits reporting entities to designate the portion of a closed portfolio of financial assets, beneficial interests secured by financial assets, or a combination of the two, that is not expected to be prepaid during the hedge period as the hedged item in a fair value hedge.

Substantive changes were made to SSAP 26R, Bonds, SSAP 21R, Other Admitted Assets, and SSAP 43R, Loan-Backed and Structured Securities, effective January 1, 2025. The changes provide a new principle-based bond definition to be used for determining which investments are eligible for reporting on Schedule D as a bond. The changes focus on ensuring appropriate consideration of whether an investment qualifies as an issuer credit obligation or asset-backed security prior to reporting as a bond.

Correction of Errors

SAP requires that corrections of errors related to prior periods be reported as adjustments to unassigned surplus to the extent that they are not material to prior periods.

In 2023, there were three out-of-period errors, including an error identified in the option value that results in increasing reserves as well as an incorrect allocation of 12b-1 fees. These errors decreased unassigned surplus by $8 million.

In 2022, three out-of-period errors, the largest due to separate account rider fees, were identified and corrected, which increased unassigned surplus by $7 million.

In 2021, one out-of-period error due to an understated model of economic hedge targeting was identified and corrected, which decreased unassigned surplus by $5 million.

The Company’s management does not believe these corrections to be material to the Company’s results of operations, financial position, or cash flow for the Company’s previously filed annual statement.

Differences in Statutory Accounting and U.S. GAAP Accounting

The accompanying statutory financial statements have been prepared in accordance with accounting practices prescribed or permitted by the NYDFS. These accounting practices vary in certain respects from U.S. GAAP. The primary differences between NAIC SAP and U.S. GAAP are as follows.

The objectives of U.S. GAAP differ from the objectives of SAP. U.S. GAAP is designed to measure the entity as a going concern and to produce general purpose financial statements to meet the varying needs of the different users of financial statements. SAP is designed to address the accounting requirements of regulators, who are the primary users of statutory-basis financial statements and whose primary objective is to measure solvency. As a result, U.S. GAAP stresses measurement of earnings and financial condition of a business from period to period, while SAP stresses measurement of the ability of the insurer to pay claims in the future.

Investments. Under SAP, investments in bonds and redeemable preferred stocks are generally reported at amortized cost. However, if bonds are designated category “6” and redeemable preferred stocks are designated categories “4 – 6” by the NAIC, these investments are reported at the lesser of amortized cost or fair value with a credit or charge to unrealized investment gains or losses. For U.S. GAAP, such fixed-maturity investments are designated at purchase as held-to-maturity, trading, or available-for-sale. Held-to-maturity fixed-maturity investments are reported at amortized cost, and the remaining fixed-maturity investments are reported at fair value, with unrealized capital gains and losses

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NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

reported in operations for those designated as trading and as a component of other comprehensive income for those designated as available-for-sale.

Under SAP, all single- and multi-class MBS or other ABS (e.g., Collateralized Mortgage Obligations (“CMO”) are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium with respect to such securities using either the retrospective or prospective method. For LBaSS, if it is determined that a decline in fair value is other than temporary, the cost basis of the security is written down to the discounted estimated future cash flows. Bonds, other than LBaSS, that are other-than-temporarily impaired are written down to fair value. For U.S. GAAP purposes, all securities, purchased or retained, that represent beneficial interests in securitized assets (e.g., CMO, MBS and ABS securities), other than high credit quality securities, would be adjusted using the prospective method when there is a change in estimated future cash flows. If high-credit quality securities must be adjusted, the retrospective method would be used. For all bonds, if it is determined that a decline in fair value is other-than-temporary, the cost basis of the security would be written down to the discounted estimated future cash flows, while the non-credit portion of the impairment would be recorded as an unrealized loss in other comprehensive income.

Under SAP, when it is probable that the insurer will be unable to collect all amounts due according to the contractual terms of the mortgage agreement, allowances are established for temporarily-impaired mortgage loans based on the difference between the unpaid loan balance and the estimated fair value of the underlying real estate, less estimated costs to obtain and sell. The initial allowance and subsequent changes in the allowance for mortgage loans are charged or credited directly to unassigned surplus rather than as a component of earnings as would be required under U.S. GAAP. If the impairment is other-than-temporary, a direct write down is recognized as a realized loss, and a new cost basis is established. Under U.S. GAAP, an allowance for credit losses is based on the expectation of lifetime credit losses.

Under SAP, joint ventures, partnerships and limited liability companies in which the insurer has a minor ownership interest (i.e., less than 10 percent) or lacks control are generally recorded based on the underlying audited U.S. GAAP basis equity of the investee. Under U.S. GAAP, joint ventures, partnerships and limited liability companies in which the insurer has a significant ownership interest or is deemed to have control are accounted for under the equity method. Where that is not the case, such investments are carried at fair value with changes in fair value recognized in earnings.

Real Estate. Under SAP, investments in real estate are reported net of related obligations; under U.S. GAAP, investments in real estate are reported on a gross basis. Under SAP, real estate owned and occupied by the insurer is included in investments; under U.S. GAAP, real estate owned and occupied by the insurer is reported as an operating asset, and operating income and expenses include rent for the insurer’s occupancy of those properties.

Derivatives. Under SAP, derivative instruments used in hedging transactions that do not meet or no longer meet the criteria of an effective hedge are accounted for at fair value with the changes in fair value recorded as unrealized capital gains or losses. Under U.S. GAAP, such derivative instruments are accounted for at fair value with the changes in fair value recorded as realized capital gains or losses. Under U.S. GAAP, fair value measurement for free standing derivatives incorporate either counterparty’s credit risk for derivative assets or the insurer’s credit risk for derivative liabilities by determining the explicit cost to protect against credit exposure. This credit exposure evaluation takes into consideration observable credit default swap rates. Under SAP, non-performance risk (own credit-risk) is not reflected in the fair value calculations for derivative liabilities. Under U.S. GAAP, index features in indexed universal life and fixed index annuity contracts and certain guaranteed features of variable annuities are bifurcated and accounted for separately as embedded policy derivatives and market risk benefits, respectively. Under SAP, embedded derivatives and market risk benefits are not bifurcated or accounted for separately from the host contract.

Interest Maintenance Reserve. Under SAP, the insurer is required to maintain an IMR. IMR is calculated based on methods prescribed by the NAIC and was established to prevent large fluctuations in interest-related capital gains and losses realized through sales or OTTI. IMR applies to all types of fixed maturity investments, including bonds, preferred stocks, MBS, ABS and mortgage loans. After-tax capital gains or losses realized upon the sale or impairment of such investments resulting from changes in the overall level of interest rates are excluded from current period net income and transferred to the IMR. The transferred after-tax net realized capital gains or losses are then amortized into income over the remaining period to maturity of the divested asset. Realized capital gains and losses are reported net of tax and transfers to the IMR, after net gain from operations. Any negative IMR balance is treated as non-admitted asset, unless

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

certain criteria are met. This reserve is not required under U.S. GAAP and pre-tax realized capital gains and losses are reported as component of total revenues, with related taxes included in taxes from operations.

Asset Valuation Reserve. Under SAP, the insurer is required to maintain an AVR, which is computed in accordance with a prescribed formula and represents a provision for possible fluctuations in the value of bonds, equity securities, mortgage loans, real estate, and other invested assets. The level of AVR is based on both the type of investment and its credit rating. Under SAP, AVR is included in total adjusted capital for RBC analysis purposes. Changes to AVR are charged or credited directly to unassigned surplus. This reserve is not required under U.S. GAAP.

Subsidiaries. Under SAP, investments in insurance subsidiaries are recorded based upon the underlying audited statutory equity of a subsidiary with all undistributed earnings or losses shown as an unrealized capital gain or loss in unassigned surplus. Dividends received by the parent company from its subsidiaries are recorded through net investment income. Under U.S. GAAP, subsidiaries’ financial statements are combined with the parent company’s financial statements through consolidation. All intercompany balances and transactions are eliminated under U.S. GAAP. Dividends received by the parent company from its subsidiaries reduce the parent company’s investment in the subsidiaries.

Policy Acquisition Costs and Sales Inducements. Under SAP, policy acquisition costs are expensed when incurred. Under U.S. GAAP, acquisition costs that are incremental and directly related to the successful acquisition of new and renewal of existing insurance contracts are deferred as deferred policy acquisition costs (“DAC”). DAC is amortized on a constant level basis (i.e., approximating straight line amortization with adjustments for expected terminations) over the expected term of the related contracts using assumptions consistent with those used in estimating the related liability for future policy benefits, or any other related balances. Under SAP, sales inducements are expensed when incurred. Under U.S. GAAP, certain sales inducements on interest-sensitive life insurance contracts and deferred annuities are deferred and amortized over the life of the contract using the same methodology and assumptions used to amortize DAC.

Deferred Premiums. Under SAP, when deferred premiums exist, statutory deferred premiums are held as a statutory asset, while under U.S. GAAP, deferred premiums are held as a contra-liability in the future policy benefits liability.

Non-admitted Assets. Certain assets designated as “non-admitted,” principally any agents’ balances or unsecured loans or advances to agents, certain DTAs, furniture, equipment and computer software, receivables over 90 days and prepaid expenses, as well as other assets not specifically identified as admitted assets within the NAIC SAP, are excluded from the Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus and are charged directly to unassigned surplus. Under U.S. GAAP, such assets are included in the balance sheet.

Universal Life and Annuity Policies. Under SAP, revenues for universal life and annuity policies containing mortality or morbidity risk considerations consist of the entire premium received, and benefits incurred consist of the total of death benefits paid and the change in policy reserves. Payments received on contracts that do not incorporate any mortality or morbidity risk considerations (deposit-type contracts) are credited directly to an appropriate liability for deposit-type contract account without recognizing premium income. Interest credited to deposit-type contracts is recorded as an expense in the Statutory Statements of Operations as incurred. Payments that represent a return of policyholder balances are recorded as a direct reduction of the liability for deposit-type contracts, rather than a benefit expense. Under U.S. GAAP, premiums received in excess of policy charges are not recognized as premium revenue, and benefits represent the excess of benefits paid over the policy account value and interest credited to the account values.

Benefit Reserves. Under SAP, loading is the difference between the gross and valuation net premium. Valuation net premium is calculated using valuation assumptions which are different for statutory and U.S. GAAP. Statutory valuation assumptions are set by the insurer within limits as defined by statutory law. U.S. GAAP valuation assumptions are set by the insurer based on management’s estimates and judgment.

Policyholder funds not involving life contingencies use different valuation assumptions for SAP and U.S. GAAP. Under SAP, prescribed rates of interest related to payout annuities are used in the discounting of expected benefit payments, while under U.S. GAAP, the insurer’s best estimates of interest rates are used.

Under SAP, the CRVM is used for the majority of individual insurance reserves. Under U.S. GAAP, individual insurance policyholder liabilities for traditional forms of insurance are generally established using the net premium ratio (“NPR”) method. For interest-sensitive policies, a liability for policyholder account balances is established under U.S. GAAP based on the contract value that has accrued to the benefit of the policyholder. Policy assumptions used in the

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NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

estimation of policyholder liabilities are generally prescribed under SAP. Under U.S. GAAP, policy assumptions are based upon best estimates.

Under SAP, the CARVM is used for the majority of individual deferred annuity reserves, while under U.S. GAAP, individual deferred annuity policyholder liabilities are generally equal to the contract value that has accrued to the benefit of the policyholder, together with liabilities for certain contractual guarantees, if applicable. Under SAP, reserves for fixed rate deposit-type contracts are based upon their accumulated values, discounted at an annual statutory effective rate, while under U.S. GAAP, reserves for deposit-type contracts are recorded at their accumulated values.

Under GAAP, indexed interest credits and guarantees in excess of contract account values are bifurcated from the host contract as embedded derivatives and market risk benefits, respectively, and reported at fair value. Under SAP, embedded derivatives and market risk benefits are not bifurcated and accounted for separately, but rather are included in the benefit reserve valuation for the host contract.

Reinsurance. Under SAP, policy and contract liabilities ceded to reinsurers are reported as reductions of the related reserves rather than as assets as required under U.S. GAAP. Under SAP, a liability for reinsurance balances has been provided for unsecured policy reserves, unearned premiums, and unpaid losses ceded to reinsurers not licensed to assume such business. Changes to these amounts are credited or charged directly to unassigned surplus. Under U.S. GAAP, an allowance for amounts deemed uncollectible would be established through a charge to earnings. Under SAP, the criteria used to demonstrate risk transfer varies from U.S. GAAP, which may result in transactions that are accounted for as reinsurance for SAP and deposit accounting for U.S. GAAP. Under SAP, the reserve credit permitted for unauthorized reinsurers is less than or equal to the amount of letter of credit or funds held in trust by the reinsurer. Under U.S. GAAP, assumed and ceded reinsurance is reflected on a gross basis in the balance sheet, and certain commissions allowed by reinsurers on ceded business are deferred and amortized generally on a basis consistent with DAC.

Policyholder Dividend Liabilities. Under SAP, policyholder dividends are recognized when declared. Under U.S. GAAP, policyholder dividends are recognized over the term of the related policies.

Separate Accounts. Under SAP, separate account surplus created through the use of the CRVM, the VACARVM or other reserving methods is reported by the general account as an unsettled transfer from the separate account. The net change on such transfers is included as a part of the net gain from operations in the general account. This is not required under U.S. GAAP.

Separate accounts include certain non-unitized assets which primarily represent MVA fixed options of variable annuity contracts issued in various states. Under SAP, these contracts are accounted for in the separate account financial statements, while under U.S. GAAP, they are accounted for in the general account.

Deferred Income Taxes. Under SAP, statutory DTAs that are more likely than not to be realized are limited to: 1) the amount of federal income taxes paid in prior years that can be recovered through loss carrybacks for existing temporary differences that reverse by the end of the subsequent calendar year, plus 2) the lesser of the remaining gross DTA expected to be realized within a maximum three years of the reporting date or a maximum 15 percent of the capital and surplus excluding any net DTA, EDP equipment and operating software and any net positive goodwill, plus 3) the amount of the remaining gross DTA that can be offset against existing gross DTLs. The remaining DTAs are non-admitted. Deferred taxes do not include amounts for state taxes. Under U.S. GAAP, state taxes are included in the computation of deferred taxes, all DTAs are recorded and a valuation allowance is established if it is more likely than not that some portion of the DTA will not be realized. Under SAP, income tax expense is based upon taxes currently payable. Changes in deferred taxes are reported in surplus and subject to admissibility limits. Under U.S. GAAP, changes in deferred taxes are recorded in income tax expense.

Offsetting of Assets and Liabilities. Under SAP, offsetting of assets and liabilities is not permitted when there are master netting agreements unless four requirements for valid right of offset are met. The requirements include 1) each of the two parties owes the other determinable amounts, 2) the reporting party has the right to set off the amount owed with the amount owed by the other party, 3) the reporting party intends to set off, and 4) the right of setoff is enforceable. The prohibition against offsetting extends to derivatives and collateral posted against derivative positions, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions, when the reporting entity does not have the intent to set off. Under U.S. GAAP, these amounts under master netting arrangements may generally be

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NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

offset and presented on a net basis pursuant to an accounting election, even when the reporting entity does not have the intent to set off.

3. INVESTMENTS

Bonds and Equity Securities

The following table presents the statement value, gross unrealized gain, gross unrealized loss and the estimated fair value of bonds and equity securities by major security type:


(in millions)	Statement Value		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2023
Bonds:
U.S. government obligations	$	300	$	1	$	(72	)	$	229
All other governments		670		2		(120	)		552
States, territories and possessions		111		1		(8	)		104
Political subdivisions of states, territories and possessions		42		1		(3	)		40
Special revenue		967		4		(98	)		873
Industrial and miscellaneous		17,035		141		(1,783	)		15,393
Hybrid securities		22		1		—			23
Bank loans		243		1		(6	)		238
Total bonds		19,390		152		(2,090	)		17,452
Preferred stock		45		1		—			46
Common stock		18		—		—			18
Total equity securities		63		1		—			64
Total	$	19,453	$	153	$	(2,090	)	$	17,516
December 31, 2022
Bonds:
U.S. government obligations	$	294	$	1	$	(67	)	$	228
All other government		702		1		(137	)		566
States, territories and possessions		95		—		(9	)		86
Political subdivisions of states, territories and possessions		43		—		(3	)		40
Special revenue		1,020		2		(127	)		895
Industrial and miscellaneous		16,549		113		(2,301	)		14,361
Hybrid securities		24		1		(1	)		24
Bank loans		281		—		(17	)		264
Total bonds		19,008		118		(2,662	)		16,464
Preferred stock		27		—		—			27
Common stock		18		—		—			18
Total equity securities		45		—		—			45
Total	$	19,053	$	118	$	(2,662	)	$	16,509

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NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Bonds and Equity Securities in Loss Positions

The following table summarizes the fair value and gross unrealized losses (where fair value is less than amortized cost) on bonds and equity securities, including amounts on NAIC 6 and 6* bonds, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position:



	Less than 12 Months					12 Months or More					Total
(in millions)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
December 31, 2023
Bonds:
U.S. government obligations	$	30	$	(3	)	$	181	$	(69	)	$	211	$	(72	)
All other governments		29		(1	)		481		(119	)		510		(120	)
U.S. States, territories and possessions		11		—			52		(8	)		63		(8	)
Political subdivisions of states, territories and possessions		10		—			19		(3	)		29		(3	)
Special revenue		191		(14	)		575		(84	)		766		(98	)
Industrial and miscellaneous		1,591		(127	)		10,461		(1,664	)		12,052		(1,791	)
Hybrid securities		1		—			12		—			13		—
Bank loans		27		—			94		(6	)		121		(6	)
Total bonds		1,890		(145	)		11,875		(1,953	)		13,765		(2,098	)
Preferred stock		2		—			—		—			2		—
Common stock		—		—			—		—			—		—
Total equity securities		2		—			—		—			2		—
Total	$	1,892	$	(145	)	$	11,875	$	(1,953	)	$	13,767	$	(2,098	)
December 31, 2022
Bonds:
U.S. government obligations	$	209	$	(67	)	$	—	$	—		$	209	$	(67	)
All other governments		539		(137	)		—		—			539		(137	)
U.S. States, territories and possessions		71		(9	)		—		—			71		(9	)
Political subdivisions of states, territories and possessions		29		(3	)		—		—			29		(3	)
Special revenue		815		(127	)		2		—			817		(127	)
Industrial and miscellaneous		11,610		(1,988	)		1,001		(315	)		12,611		(2,301	)
Hybrid securities		15		(1	)		—		—			15		(1	)
Bank loans		117		(7	)		143		(10	)		260		(16	)
Total	$	13,405	$	(2,339	)	$	1,146	$	(325	)	$	14,551	$	(2,664	)
Preferred stock		6		—			2		—			8		—
Common stock		—		—			—		—			—		—
Total equity securities		6		—			2		—			8		—
Total	$	13,411	$	(2,339	)	$	1,148	$	(325	)	$	14,559	$	(2,664	)

As of December 31, 2023 and 2022, the number of bonds and equity securities in an unrealized loss position was 3,394 and 3,721, respectively. Bonds comprised 3,393 of the total of which 2,927 were in a continuous loss position greater than 12 months at December 31, 2023. Bonds comprised 3,716 of the total of which 282 were in a continuous loss position greater than 12 months at December 31, 2022.

The Company did not recognize the unrealized losses in earnings on these fixed maturity securities at December 31, 2023 and 2022, respectively, because the Company neither intends to sell the securities nor does the Company believe that it is more likely than not that the Company will be required to sell these securities before recovery of their amortized cost basis. For fixed maturity securities with significant declines, the Company performed fundamental credit analyses on a security-by-security basis, which included consideration of credit enhancements, expected defaults on underlying collateral, review of relevant industry analyst reports and forecasts and other available market data.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Contractual Maturities of Bonds

The following table presents the statement value and fair value of bonds by contractual maturity:


(in millions)	Statement Value		Fair Value
December 31, 2023
Due in one year or less	$	347	$	343
Due after one year through five years		2,678		2,582
Due after five years through ten years		2,735		2,486
Due after ten years		8,219		6,772
LBaSS		5,411		5,269
Total	$	19,390	$	17,452

Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties.

Bonds in or near default as to payment of principal or interest had a statement value of $9 million and $29 million at December 31, 2023 and 2022, respectively, which is the fair value. At December 31, 2023 and 2022, the Company had no income excluded from due and accrued for bonds.

At December 31, 2023, the Company’s bond portfolio included bonds totaling $1 billion not rated investment grade by the NAIC designations (categories 3-6). These bonds accounted for 3 percent of the Company’s total assets and 3 percent of invested assets. These below investment grade securities, excluding structured securities, span across 13 industries. At December 31, 2022, the Company’s bond portfolio included bonds totaling $1.0 billion not rated investment grade by the NAIC designations (categories 3-6). These bonds accounted for 3 percent of the Company’s total assets and 4 percent of invested assets. These below investment grade securities, excluding structured securities, span across 12 industries.

The following table presents the industries that constitute more than 10% of the below investment grade securities:


	December 31,
	2023			2022
Consumer cyclical		13.4	%		21.9	%

Consumer non-cyclical		12.3			13.0

Communications		—			11.4

Energy		10.8			11.2

Utility		10.5			—

LBaSS

The Company determines fair value of LBaSS based on the amount at which a security could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The majority of the Company’s ABS, RMBS, CMBS, and collateralized debt obligations (CDO) are priced by approved independent third-party valuation service providers and broker dealer quotations. Small portions of the LBaSS that are not traded in active markets are priced by market standard internal valuation methodologies, which include discounted cash flow methodologies and matrix pricing. The estimated fair values are based on available market information and management’s judgments.

The following table presents the statement value and fair value of LBaSS:

December 31, 2023

December 31, 2022

(in millions)

Statement

Value

Fair Value

Statement

Value

Fair Value

Loan-backed and structured securities

5,411

5,269

4,363

4,110

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Prepayment assumptions for single class, multi-class mortgage-backed and ABS were obtained from independent third-party valuation service providers or internal estimates. These assumptions are consistent with the current interest rate and economic environment.

At December 31, 2023 and 2022, the Company had exposure to a variety of LBaSS. These securities could have significant concentrations of credit risk by country, geographical region, property type, servicer or other characteristics. As part of the quarterly surveillance process, the Company takes into account many of these characteristics in making the OTTI assessment.

At December 31, 2023 and 2022, the Company did not have any LBaSS with a recognized OTTI due to the intent to sell or an inability or lack of intent to retain the security for a period of time sufficient to recover the amortized cost basis.

During 2023, 2022 and 2021, the Company recognized total OTTI of $5 million, $20 million and $1 million, respectively, on LBaSS that were still held by the Company. In addition, at December 31, 2023 and 2022, the Company held loan-backed impaired securities (fair value is less than cost or amortized cost) for which an OTTI had not been recognized in earnings as a realized loss. Such impairments include securities with a recognized OTTI for non-interest (credit) related declines that were recognized in earnings, but for which an associated interest-related decline has not been recognized in earnings as a realized capital loss.

The following table summarizes the fair value and aggregate amount of unrealized losses on LBaSS and length of time that individual securities have been in a continuous unrealized loss position:


	Less than 12 Months					12 Months or More					Total
(in millions)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
December 31, 2023

LBaSS	$	932	$	(39	)	$	1,964	$	(205	)	$	2,896	$	(244	)

December 31, 2022

LBaSS	$	2,802	$	(300	)	$	209	$	(32	)	$	3,011	$	(332	)

In its OTTI assessment, the Company considers all information relevant to the collectability of the security, including past history, current conditions and reasonable forecasts when developing an estimate of future cash flows. Relevant analyst reports and forecasts for the asset class also receive appropriate consideration. The Company also considers how credit enhancements affect the expected performance of the security. In addition, the Company generally considers its cash and working capital requirements and expected cash flows in relation to its business plans and how such forecasts affect the intent and ability to hold such securities to recovery of their amortized cost.

The Company does not have any LBaSS for which it is not practicable to estimate fair values.

The following table presents the rollforward of non-interest related OTTI for LBaSS:


	December 31,
(in millions)	2023		2022
Balance, beginning of year	$	177	$	204
Increases due to:
Credit impairment on new securities subject to impairment losses		3		7
Additional credit impairment on previously impaired investments		2		14
Reduction due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell		4		48
Balance, end of year	$	178	$	177

See Note 23 for a list with each LBaSS at a CUSIP level where the present value of cash flows expected to be collected is less than the amortized cost basis during the current year and a list of the Company’s structured notes holding at December 31, 2023.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Mortgage Loans

Mortgage loans had outstanding principal balances of $3.9 billion and $3.9 billion at December 31, 2023 and 2022, respectively. Contractual interest rates range from 0.00 percent to 10.30 percent. The mortgage loans at December 31, 2023 had maturity dates ranging from 2024 to 2055.

The Company’s mortgage loans are collateralized by a variety of commercial real estate property types located throughout the U.S. and Canada. The commercial mortgage loans are non-recourse to the borrower.

The following tables present the geographic and property-type distribution of the Company’s mortgage loan portfolio:


	December 31,
	2023			2022
Geographic distribution:
Mid-Atlantic		26.4	%		26.9	%
Pacific		19.5			19.4
Foreign		18.5			16.8
South Atlantic		12.1			12.7
East North Central		6.3			6.6
West South Central		7.6			7.8
New England		4.3			3.5
Mountain		2.5			3.3
East South Central		2.3			2.4
West North Central		0.5			0.6
Total		100.0	%		100.0	%
Property type distribution:
Multi-family		31.5	%		30.8	%
Office		21.9			22.1
Retail		7.4			7.2
Industrial		20.2			20.3
Hotel/Motel		2.4			2.1
Other		16.6			17.5
Total		100.0	%		100.0	%

At December 31, 2023, there were 59 mortgage loans with outstanding balances of $20 million or more, which loans collectively, aggregated approximately 52 percent of this portfolio.

The following table presents the minimum and maximum lending rates for new mortgage loans during 2023 and 2022:


	Years Ended December 31,
	2023						2022
(in millions)	Maximum			Minimum			Maximum			Minimum
Office		10.14	%		3.00	%		7.83	%		4.16	%
Industrial		4.08			4.08			9.34			2.68
Retail		—			—			—			—
Hotel/Motel		7.43			7.43			—			—
Multi-family		8.47			7.08			8.37			3.01
Other		—			—			9.33			2.52

The Company did not reduce the interest rate on any loans during 2023. The Company reduced the interest rate on one loan during 2022.

The maximum percentage of any one loan to the value of security at the time of the loan, exclusive of insured or guaranteed or purchase money mortgage was 70.0 percent and 80.0 percent, in 2023 and 2022, respectively.

At December 31, 2023, the Company held $92 million in impaired mortgage loans with a related allowance for credit losses. There were no impaired mortgage loans without a related allowance. At December 31, 2022, the Company held $114 million in impaired mortgages with $74 million of related allowances for credit losses and $40 million in impaired loans without a related allowance. The Company’s average recorded investment in impaired loans was $104 million and

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

$79 million, at December 31, 2023 and 2022, respectively. The Company recognized interest income of $1 million, $3 million and $1 million, in 2023, 2022 and 2021, respectively.

The following table presents a rollforward of the changes in the allowance for losses on mortgage loans receivable:


	December 31,
(in millions)	2023		2022		2021
Balance, beginning of year	$	40	$	31	$	37

Additions (reductions) charged to unrealized capital loss		15		9		(6)

Direct write-downs charged against allowance		(7)		—		—
Balance, end of year	$	48	$	40	$	31

During 2023, the Company did not derecognize any mortgage loans and did not recognize any real estate collateral as a result of foreclosure.

The mortgage loan portfolio has been originated by the Company under strict underwriting standards. Commercial mortgage loans on properties such as offices, hotels and shopping centers generally represent a higher level of risk than do mortgage loans secured by multi-family residences. This greater risk is due to several factors, including the larger size of such loans and the more immediate effects of general economic conditions on these commercial property types. However, due to the Company’s strict underwriting standards, the Company believes that it has prudently managed the risk attributable to its mortgage loan portfolio while maintaining attractive yields.

The following table presents the age analysis of mortgage loans:


	December 31,
(in millions)	2023		2022
Current	$	3,875	$	3,904

30 - 59 days past due		1		2

90 - 179 days past due		—		—
Total	$	3,876	$	3,906

At December 31, 2023 and 2022, the Company had mortgage loans outstanding under participant or co-lender agreements of $3.0 billion and $3.0 billion, respectively.

The Company had $61 million and $60 million in restructured loans at December 31, 2023 and 2022, respectively.

Aggregate mortgage loans having the following loan-to-value ratios as determined from the most current appraisal as of December 31, 2023:


(in millions)	Residential				Commercial				Agricultural

Loan-to-Value	Amount		Percentage of Total Admitted Assets		Amount		Percentage of Total Admitted Assets		Amount		Percentage of Total Admitted Assets
a. above 95%	$	—		— %	$	90		0.30	$	—		—	%

b. 91% to 95%		—		—		33		0.10		—		—

c. 81% to 90%		—		—		153		0.60		—		—

d. 71% to 80%		73		0.30		448		1.70		—		—

e. below 70%		569		2.20		2,511		9.70		—		—

Troubled Debt Restructuring

The Company held no restructured debt for which impairment was recognized for both December 31, 2023 and 2022. In 2023, the Company had $1 million in outstanding commitments to debtors that hold loans with restructured terms. In 2022, the Company had $1 million outstanding commitment to debtors that hold loans with restructured terms.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Real Estate

The Company had no investment in real estate at December 31, 2023, 2022 and 2021.

Other Invested Assets

The following table presents the components of the Company’s other invested assets:


	December 31,
(in millions)	2023		2022
Investments in limited liability companies	$	205	$	57
Investments in limited partnerships		1,074		1,240
Collateral loan		—		416
Surplus note		—		133
Other unaffiliated investments		369		56
Receivable for securities		37		25
Non-admitted assets		(16)		(3)
Total	$	1,669	$	1,924

The Company utilizes the look-through approach in valuing its investments in affiliated joint ventures or partnerships that have the characteristics of real estate investments. These affiliated real estate investments had an aggregate value of $248 million and $255 million at December 31, 2023 and 2022, respectively. All liabilities, commitments, contingencies, guarantees, or obligations of these holding company entities, which are required to be recorded as liabilities, commitments, contingencies, guarantees or obligations under applicable accounting guidance, are reflected in the Company’s determination of the carrying value of the investment in each of the respective holding company entities, if applicable.

The Company recorded impairment write-downs in joint ventures was $1 million, $13 million and $12 million during 2023, 2022 and 2021, respectively.

Net Investment Income

The following table presents the components of net investment income:


	Years ended December 31,
(in millions)	2023		2022		2021
Bonds	$	860	$	802	$	880
Common stocks		1		—		1
Cash and short-term investments		21		8		4
Mortgage loans		200		159		140
Contract loans		8		9		9
Derivatives		(36)		145		42
Investment income from affiliates		3		20		18
Other invested assets		96		97		104
Gross investment income		1,153		1,240		1,198
Investment expenses		(30)		(36)		(29)
Net investment income	$	1,123	$	1,204	$	1,169

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Net Realized and Unrealized Capital Gains (Losses)

The following table presents the components of Net realized capital gains (losses):


	Years ended December 31,
(in millions)	2023		2022		2021
Bonds	$	(86)	$	(91)	$	139
Common stocks		1		(1)		1
Cash and short-term investments		2		(4)		1
Mortgage loans		(12)		(7)		—
Derivatives		48		(64)		(159)
Other invested assets		12		(1)		28
Realized capital gains (losses)		(35)		(168)		10
Federal income tax (expense) benefit		7		35		(2)
Net gains transferred to IMR		58		61		(111)
Net realized capital gains (losses)	$	30	$	(72)	$	(103)

During 2023, 2022 and 2021, the Company recognized $7 million, $28 million and $3 million, respectively, of impairment write-downs in accordance with the impairment policy described in Note 2.

The following table presents the proceeds from sales of bonds and equities and the related gross realized capital gains and gross realized capital losses:


	Years ended December 31,
(in millions)	2023		2022		2021
Proceeds	$	513	$	1,410	$	2,452

Gross realized capital gains	$	20	$	46	$	130
Gross realized capital losses	$	(102)		(108)		(27)
Net realized capital gains (losses)	$	(82)	$	(62)	$	103

The following table presents the net change in unrealized capital gains (losses) of investments (including foreign exchange capital gains (losses):


	Years ended December 31,
(in millions)	2023		2022		2021
Bonds	$	29	$	(37)	$	(39)
Preferred and common stocks		—		—		—
Mortgage loans		25		(55)		(7)
Derivatives		29		(102)		63
Other invested assets		(40)		(6)		178
Federal income tax expense		(9)		42		(41)
Net change in unrealized gains (losses) of investments	$	34	$	(158)	$	154

5GI Securities Measured at Aggregate Book Adjusted Carrying Value and Fair Value

The following table presents 5GI Securities measured at aggregate book adjusted carrying value (BACV) and aggregate fair value at December 31:


Investment	Number of 5GI Securities				Aggregate BACV (in millions)				Aggregate Fair Value (in millions)
	2023		2022		2023		2022		2023		2022
Bonds - AC	$	2		1	$	1		10	$	1	$	8
LB&SS - AC		1		13		—		8		—		7
Preferred Stock - AC		—		2		—		2		—		2
Preferred Stock - FV		—				—		—		—		—
Total		3		16	$	1	$	20	$	1	$	17

AC - Amortized Cost

FV - Fair Value

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

4. Loan-Backed and Structured Security Impairments and Structured Notes Holdings

LBaSS

The following table presents the LBaSS held by the Company at December 31, 2023 for which it had recognized non-interest related OTTI subsequent to the adoption of SSAP 43R:


(in thousands)
CUSIP	Amortized Cost Before Current Period OTTI		Present Value of Projected Cash Flows		Recognized OTTI		Amortized Cost After OTTI		Fair Value at Time of OTTI		Date of Financial Statement Where Reported
126694EK0	$	993	$	991	$	3	$	991	$	882		3/31/2023
76111XVN0		232		224		8		224		205		3/31/2023
32051GPW9		333		332		1		332		326		3/31/2023
Quarterly Total	$	1,558	$	1,547	$	12	$	1,547	$	1,413
007036KG0		2,642		2,636		6		2,636		2,513		6/30/2023
Quarterly Total	$	2,642	$	2,636	$	6	$	2,636	$	2,513
007036UQ7		592		575		17		575		554		9/30/2023
05952GAE1		5,704		5,676		29		5,676		5,975		9/30/2023
362257AC1		11,386		11,004		382		11,004		12,942		9/30/2023
76112FAA9		17,278		16,565		713		16,565		18,626		9/30/2023
362480AD7		11,619		11,591		28		11,591		11,898		9/30/2023
362367AD6		11,913		9,485		2,428		9,485		12,897		9/30/2023
93934FCF7		7,329		7,170		158		7,170		6,890		9/30/2023
50179MAH4		82		68		14		68		67		9/30/2023
Quarterly Total	$	65,903	$	62,134	$	3,769	$	62,134	$	69,849
67088CAA5		865		80		786		80		80		12/31/2023
12544KAA1		4,203		4,192		11		4,192		3,927		12/31/2023
60688CAJ5		44		5		39		5		5		12/31/2023
007036LR5		4,730		4,716		13		4,716		4,365		12/31/2023
126694JS8		385		380		5		380		378		12/31/2023
02660TGV9		8,235		8,191		44		8,191		7,635		12/31/2023
251510FG3		3,097		3,057		39		3,057		2,568		12/31/2023
92990GAC7		398		397		1		397		359		12/31/2023
Quarterly Total	$	21,957	$	21,018	$	938	$	21,018	$	19,317
				Year End Total	$	4,725

None of the structured notes held by the Company are defined as a Mortgage-Referenced Security by the IAO.

5. SECURITIES LENDING AND REPURCHASE AGREEMENTS

Securities Lending

At December 31, 2023, the Company had no bonds loaned pursuant to the securities lending program. At December 31, 2022, the Company had no bonds loaned pursuant to the securities lending program.

The following table presents the aggregate fair value of cash collateral received related to the securities lending program and the terms of the contractually obligated collateral positions:


	December 31,
(in millions)	2023		2022
30 days or less	$	—	$	—
31 to 60 days		—		—
61 to 90 days		—		—
Subtotal		—		—
Securities collateral received		—		—
Total collateral received	$	—	$	—

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

The following table presents the aggregate amortized cost and fair value of cash collateral reinvested related to the securities lending program by maturity date:

December 31, 2023

December 31, 2022

(in millions)

Amortized

Cost

Fair Value

Amortized

Cost

Fair Value

Open positions

—

Subtotal

—

Securities collateral received

—

Total collateral reinvested

—

Repurchase Agreements

At December 31, 2023, no bonds were subject to repurchase agreements to secure amounts borrowed by the Company. At December 31, 2022, no bonds were subject to repurchase agreements to secure amounts borrowed by the Company.

The following table presents the aggregate fair value of cash collateral received related to the repurchase agreement program and the terms of the contractually obligated collateral positions:


	December 31,
(in millions)	2023		2022
Open positions	$	—	$	—
30 days or less		—		20
31 to 60 days		—		—
61 to 90 days		—		—
Greater than 90 days		—		—
Subtotal		—		20
Securities collateral received		—		—
Total collateral received	$	—	$	20

The following table presents the original (flow) and residual maturity for bi-lateral repurchase agreement transactions for the year ended December 31, 2023:



(in millions)	FIRST QUARTER		SECOND QUARTER		THIRD QUARTER		FOURTH QUARTER

a. Maximum Amount
1. Open - No Maturity	$	—	$	—	$	—	$	—
2. Overnight		15		25		—		—
3. 2 Days to 1 Week		15		—		—		—
4. > 1 Week to 1 Month		15		25		—		—
5. > 1 Month to 3 Months		—		—		—		—
6. > 3 Months to 1 Year		—		—		—		—
7. > 1 Year		—		—		—		—

b. Ending Balance
1. Open - No Maturity	$	—	$	—	$	—	$	—
2. Overnight		15		—		—		—
3. 2 Days to 1 Week		—		—		—		—
4. > 1 Week to 1 Month		—		—		—		—
5. > 1 Month to 3 Months		—		—		—		—
6. > 3 Months to 1 Year		—		—		—		—
7. > 1 Year		—		—		—		—

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

The following table presents the Company’s liability to return collateral for the year ended December 31, 2023:



(in millions)	FIRST QUARTER		SECOND QUARTER		THIRD QUARTER		FOURTH QUARTER

a. Maximum Amount
1. Cash (Collateral - All)	$	45	$	51	$	—	$	—
2. Securities Collateral (FV)		—		—		—		—
b. Ending Balance
1. Cash (Collateral - All)	$	15	$	—	$	—	$	—
2. Securities Collateral (FV)		—		—		—		—

The Company requires a minimum of 95 percent of the fair value of securities sold under the repurchase agreements to be maintained as collateral. Cash collateral received is invested in corporate bonds and the offsetting collateral liability for repurchase agreements is included in other liabilities.

The following table presents the aggregate amortized cost and fair value of cash collateral reinvested related to the repurchase agreement program by maturity date:

December 31, 2023

December 31, 2022

(in millions)

Amortized

Cost

Fair Value

Amortized

Cost

Fair Value

Open positions

—

Greater than three years

—

Subtotal

—

Securities collateral received

—

Total collateral reinvested

—

The following table presents the fair value of securities under bi-lateral repurchase agreement transactions for the year ended December 31, 2023:

(in millions)

FIRST
QUARTER

SECOND
QUARTER

THIRD
QUARTER

FOURTH
QUARTER

a. Maximum Amount

1. BACV

—

2. Nonadmitted - Subset of BACV

—

3. Fair Value

—

b. Ending Balance

1. BACV

—

2. Nonadmitted - Subset of BACV

—

3. Fair Value

—

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

The following table presents the fair value of securities under bi-lateral repurchase agreement transactions for the year ended December 31, 2023:

(in millions)

None

NAIC 1

NAIC 2

NAIC 3

Ending Balance

a. Bonds - BACV

—

b. Bonds - FV

—

c. LB & SS - BACV

—

d. LB & SS - FV

—

e. Preferred Stock - BACV

—

f. Preferred Stock - FV

—

g. Common Stock

—

h. Mortgage Loans - BACV

—

i. Mortgage Loans - FV

—

j. Real Estate - BACV

—

k. Real Estate - FV

—

l. Derivatives - BACV

—

m. Derivatives - FV

—

n. Other Invested Assets - BACV

—

o. Other Invested Assets - FV

—

p. Total Assets - BACV

—

q. Total Assets - FV

—

(in millions)

NAIC 4

NAIC 5

NAIC 6

Non-Admitted

Ending Balance

a. Bonds - BACV

—

b. Bonds - FV

—

c. LB & SS - BACV

—

d. LB & SS - FV

—

e. Preferred Stock - BACV

—

f. Preferred Stock - FV

—

g. Common Stock

—

h. Mortgage Loans - BACV

—

i. Mortgage Loans - FV

—

j. Real Estate - BACV

—

k. Real Estate - FV

—

l. Derivatives - BACV

—

m. Derivatives - FV

—

n. Other Invested Assets - BACV

—

o. Other Invested Assets - FV

—

p. Total Assets - BACV

—

q. Total Assets - FV

—

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

6. RESTRICTED ASSETS

The Company has restricted assets as detailed below. Assets under restriction are general account assets and are not part of the Separate Accounts.

The following table presents the carrying value of the Company’s restricted assets:


	December 31,
(in millions)	2023		2022
On deposit with states	$	16	$	16

Securities lending		—		—

Collateral held on securities lending		—		—

FHLB stock and collateral pledged		534		396

Subject to repurchase agreements		—		—

Collateral for derivatives		157		405
Total	$	707	$	817

7. SUBPRIME MORTGAGE RISK EXPOSURE

The following features are commonly recognized characteristics of subprime mortgage loans:

•

An interest rate above prime to borrowers who do not qualify for prime rate loans;

•

Borrowers with low credit ratings (FICO scores);

•

Interest-only or negative amortizing loans;

•

Unconventionally high initial loan-to-value ratios;

•

Low initial payments based on a fixed introductory rate that expires after a short initial period, then adjusts to a variable index rate plus a margin for the remaining term of the loan;

•

Borrowers with less than conventional documentation of their income and/or net assets;

•

Very high or no limits on how much the payment amount or the interest rate may increase at reset periods, potentially causing a substantial increase in the monthly payment amount; and/or

•

Substantial prepayment penalties and/or prepayment penalties that extend beyond the initial interest rate adjustment period.

Non-agency RMBS can belong to one of several different categories depending on the characteristics of the borrower, the property and the loan used to finance the property. Categorization is a function of FICO score, the type of loan, loan-to-value ratio, and property type and loan documentation.

Generally, subprime loans are made to borrowers with low FICO scores, low levels of equity and reduced income/asset documentation. Due to these characteristics, subprime borrowers pay a substantially higher interest rate than prime borrowers. In addition, they often utilize mortgage products that reduce their monthly payments in the near-term. These include adjustable-rate mortgages with low initial rates or interest-only loans. Borrowers in products like this often experience significant “payment shock” when the teaser payment resets upwards after the initial fixed period.

The primary classification mechanism the Company uses for subprime loans is FICO score. Specifically, a pool with an average FICO at origination less than 650 is considered to be subprime. However, the Company may subjectively adjust this classification based on an assessment of the other parameters mentioned above.

To monitor subprime securities, the Company uses a model with vintage-specific assumptions for delinquency roll rates, loss severities and the timing of losses. As and when needed, these vintage-based assumptions are supplemented with deal-specific information including, but not limited to, geographic distribution, realized loss severities, trigger status and scenario analysis.

The Company has no direct exposure through investments in subprime mortgage loans. The Company’s exposure is through other investments, primarily in RMBS, as described above.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

The following table presents information regarding the Company’s investments with subprime exposures:


(in millions)	Actual Cost		Book Adjusted Statement Value		Fair Value		OTTI Recognized to Date
December 31, 2023
In general account:
RMBS	$	127	$	127	$	133	$	—
CDOs		13		16		16		—
CMBS		—		—		—		—
Total subprime exposure	$	140	$	143	$	149	$	—
December 31, 2022
In general account:
RMBS	$	149	$	149	$	156	$	—
CDOs		16		20		18		—
CMBS		—		—		—		—
Total subprime exposure	$	165	$	169	$	174	$	—

The Company has no underwriting exposure to subprime mortgage risk through mortgage guaranty or financial guaranty insurance coverage.

8. DERIVATIVES

The Company has taken positions in certain derivative financial instruments to mitigate or hedge the impact of changes in interest rates, foreign currencies, equity markets, swap spreads, volatility, correlations and yield curve risk on cash flows from investment income, policyholder liabilities and equity. Financial instruments used by the Company for such purposes include interest rate swaps, interest rate swaptions, cross-currency swaps, futures and futures options on equity indices, and futures and futures options on government securities. The Company does not engage in the use of derivative instruments for speculative purposes and is neither a dealer nor trader in derivative instruments.

All derivative instruments are recognized in the financial statements. Derivatives that do not qualify for hedge accounting are accounted for at fair value and the changes in the fair value recorded in surplus as unrealized gains and losses, net of deferred taxes. Derivatives which qualify for hedge accounting are accounted at carrying value. The change in the carrying value or cash flow of the derivative is recorded consistently with how the changes in the carrying value or cash flow of the hedged asset. The value of the Company’s exchange traded futures contracts relates to the one day lag in the net cash settlement of these contracts.

The Company recognized a net unrealized capital gain of $32 million in 2023, an unrealized capital loss of $95 million in 2022 and an unrealized capital gain of $63 million in 2021, related to derivatives that did not qualify for hedge accounting.

The Company is hedging the risk of changes in the fair value of a designated specified percentage of a closed portfolio of purchased fixed-rate investment assets that is attributable to changes in a benchmark interest rate. The Company is hedging the portfolio on a partial term basis. The hedged item is the last $6.9 billion of financial assets in a closed portfolio (par value of $9.1 billion) for a 5-year period. A proportionate amount of existing interest rate swaps has been designated as the hedging instruments.

For the purposes of supporting the five-year hedge relationship, portfolio assets with a term greater than five years are assumed to be five-year assets using the partial-term hedging guidance. By electing to hedge the benchmark interest rate component of the contractual cash flows, the hedged assets will have an assumed coupon based on a five-year benchmark interest rate (i.e., SOFR). As a result, the hedged components of the different tenor assets are considered similar when performing the similar asset analysis.

A haircut of approximately 24% was applied to the portfolio to maintain a hedged item that is projected to always exceed the notional value of the interest rate swaps. The haircut consisted of the following components:

•

Scheduled principal paydowns (approximately 10%)

•

Anticipated annual defaults (approximately 1%)

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

•

Anticipated annual sales (approximately 13%)

Pursuant to fair value hedge accounting, the swaps hedging the portfolio of fixed-interest investments have been reported on the same basis (i.e., amortized cost) as the hedged target. The amortized cost basis of the interest rate swaps was zero at December 31, 2023.

Net cash collateral received for derivative transactions increased in the year 2023, as a result of increases in fair values of derivatives covered by an International Swaps and Derivative Association Master Agreement (“ISDA Master Agreement”) and Credit Support Annex provisions. At December 31, 2023, the Company held $40 million of collateral for derivatives, which is invested in cash, cash equivalents and/or short-term investments.

Refer to Note 3 for disclosures related to net realized capital gains (losses).

Swaps, Options, and Futures

Interest rate or cross-currency swap agreements are agreements to exchange with a counterparty, at specified intervals, payments of differing character (for example, variable-rate payments exchanged for fixed-rate payments) or in different currencies, based on an underlying principal balance, notional amount. Generally no cash is exchanged at the outset of the contract and no principal payments are made by either party. A single net payment is usually made by one counterparty at each contractual payment due date, and this net payment is included in the Statutory Statement of Operations.

Options are contracts that grant the purchaser, for a premium payment, the right, but not the obligation, either to purchase or sell a financial instrument at a specified price within a specified period of time. The Company purchases call options on the S&P 500 Index to offset the risk of certain guarantees of specific equity-index annuity and universal life policy values. The Company also purchases put options on the S&P 500 Index to offset volatility risk arising from minimum guarantees embedded in variable annuities. The options are carried at fair value, with changes in fair value recognized in unrealized investment gains and losses.

Financial futures are contracts between two parties that commit one party to purchase and the other to sell a particular commodity or financial instrument at a price determined on the final settlement day of the contract. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. The Company uses futures contracts on Euro dollar deposits, U.S. Treasury Notes, U.S. Treasury Bonds, the S&P 500 Index, MidCap 400, Russell 2000, MSCI EAFE, foreign government debt securities, and foreign denominated equity indices to offset the risk of certain guarantees on annuity policy values.

Interest Rate Risk

Interest rate derivatives are used to manage interest rate risk associated with certain guarantees of variable annuities and equity indexed annuities and certain bonds. The Company’s interest rate hedging derivative instruments include (1) interest rate swaps and swaptions; (2) listed futures on government securities; and (3) listed futures options on government securities; and (4) unlisted swaps and swaptions in U.S. Dollar Secured Overnight Financing Rate.

Currency Risk

Foreign exchange contracts used by the Company include cross-currency swaps, which are used to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company holds.

Equity Risk

Equity derivatives are used to mitigate financial risk embedded in certain insurance liabilities.

Credit Risk

The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial instruments, but it does not expect any counterparties to fail to meet their obligations given their high credit ratings. For over-the-counter (“OTC”) derivatives, the Company’s net credit exposure is determined based on master netting agreements, which take into consideration all derivative positions with the counterparty, as well as collateral posted by the counterparty at the balance sheet date. The Company is exposed to credit risk when the net position with a particular counterparty results in an asset that exceeds collateral pledged by that counterparty.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

For OTC contracts, the Company generally uses an ISDA Master Agreement and Credit Support Annexes with bilateral collateral provisions to reduce counterparty credit exposures. An ISDA Master Agreement is an agreement between two counterparties, which may cover multiple derivative transactions and such ISDA Master Agreement generally provides for the net settlement of all or a specified group of these derivative transactions, as well as transferred collateral, through a single payment, in a single currency, in the event of a default affecting any one derivative transaction or a termination event affecting all or a specified group of the transactions. The Company minimizes the risk that counterparties might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value and may require additional collateral to be posted upon the occurrence of certain events or circumstances. In the unlikely event of a failure to perform by any of the counterparties to these derivative transactions, there would not be a material effect on the Company’s admitted assets, liabilities or capital and surplus.

The Company has also entered into exchange-traded options and futures contracts. Under exchange-traded futures contracts, the Company agrees to purchase a specified number of contracts with other parties and to post or receive variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The parties with whom the Company enters into exchange-traded futures are regulated futures commission merchants who are members of a trading exchange. The credit risk of exchange-traded futures is partially mitigated because variation margin is settled daily in cash. Exchange-traded option contracts are not subject to daily margin settlements and amounts due to the Company based upon favorable movements in the underlying securities or indices are owed upon exercise.

The following table presents the notional amounts, statement values and fair values of the Company’s derivative instruments:


	December 31, 2023						December 31, 2022

(in millions)	Contract or Notional Amount		Statement Value		Fair Value		Contract or Notional Amount		Statement Value		Fair Value
Assets:
Interest rate contracts	$	8,745	$	48	$	113	$	10,173	$	61	$	61
Foreign exchange contracts		456		54		54		688		90		90
Equity contracts		2,307		327		327		1,444		54		54
Derivative assets, gross		11,508		429		494		12,305		205		205
Counter party netting*		—		(383)		(383)		—		(114)		(114)
Derivative assets, net	$	11,508	$	46	$	111	$	12,305	$	91	$	91
Liabilities:
Interest rate contracts	$	896	$	139	$	139	$	1,064	$	209	$	209
Foreign exchange contracts		1,362		44		46		1,013		52		52
Equity contracts		2,268		202		202		1,146		34		34
Derivative liabilities, gross		4,526		385		387		3,223		295		295
Counter party netting*		—		(383)		(383)		—		(114)		(114)
Derivative liabilities, net	$	4,526	$	2	$	4	$	3,223	$	181	$	181

* Represents netting of derivative exposures covered by a qualifying master netting agreement.

The Company has a right of offset of its derivatives asset and liability positions with various counterparties.

The following table presents the effect of the right of offsets:


	December 31, 2023				December 31, 2022
(in millions)	Assets		Liabilities		Assets		Liabilities
Gross amount recognized	$	429	$	385	$	205	$	297
Amount offset		(383)		(383)		(114)		(114)
Net amount presented in the Statement of Admitted
Assets, Liabilities, and Capital and Surplus	$	46	$	2	$	91	$	183

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

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

The following table presents the Company’s derivative financial instruments with concentrations of credit risk:

December 31, 2023

December 31, 2022

(in millions)

Contract or

Notional

Amount

Final

Maturity

Date

Contract or

Notional

Amount

Final

Maturity

Date

Derivative assets:

Interest rate contracts

8,745

2054

10,173

2061

Foreign exchange contracts

456

2049

688

2049

Equity contracts

2,307

2024

1,444

2023

Derivative liabilities:

Interest rate contracts

896

2052

1,064

2052

Foreign exchange contracts

1,362

2045

1,013

2045

Equity contracts

2,268

2024

1,146

2023

The credit exposure to the Company’s derivative contracts is limited to the fair value of such contracts that are favorable to the Company at the reporting date.

The credit exposure to the Company’s derivative contracts aggregated $134 million and $162 million at December 31, 2023 and 2022, respectively.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

10. FAIR VALUE INSTRUMENTS

Fair Value Measurements

The Company carries certain financial instruments at fair value. The Company defines the fair value of a financial instrument as the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company is responsible for the determination of the value of the investments carried at fair value and the supporting methodologies and assumptions.

The degree of judgment used in measuring the fair value of financial instruments generally inversely correlates with the level of observable valuation inputs. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, liquidity and general market conditions.

Fair Value Hierarchy

Assets and liabilities recorded at fair value are measured and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs:

•

Level 1: Fair value measurements based on quoted prices (unadjusted) in active markets that the Company has the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. The Company does not adjust the quoted price for such instruments.

•

Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.

•

Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, the Company must make certain assumptions as to the inputs a hypothetical market participant would use to value that asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In those cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value.

Bonds: Fair value is based principally on value from independent third-party valuation service providers, broker quotes and other independent information.

Preferred stocks: Fair value of unaffiliated preferred stocks is based principally on value from independent third-party service providers, broker quotes and other independent information.

Cash, cash equivalents and short term investments: Carrying amount approximate fair value because of the relatively short period of time between origination and expected realization and their limited exposure to credit risk.

Mortgage loans: Fair values are primarily determined by discounting future cash flows to the present at current market rates, using expected prepayment rates.

Contract loans: Carrying amounts, which approximate fair value, are generally equal to unpaid principal amount as of each reporting date. No consideration is given to credit risk because contract loans are effectively collateralized by the cash surrender value of the policies.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Securities lending reinvested collateral assets: Securities lending assets are generally invested in short-term investments and thus carrying amounts approximate fair values because of the relatively short period of time between origination and expected realizations.

Separate account assets: Variable annuity and variable universal life assets are carried at the market value of the underlying securities. Certain separate account assets related to market value adjustment fixed annuity contracts are carried at book value. Fair value is based principally on the value from independent third-party valuation service providers, broker quotes and other independent information.

Policy reserves and contractual liabilities: Fair value for investment contracts (those without significant mortality risk) not accounted for at fair value were estimated for disclosure purposes using discounted cash flow calculations based upon interest rates currently being offered for similar contracts with maturities consistent with those remaining for the contracts being valued. When no similar contracts are being offered, the discount rate is the appropriate swap rates (if available) or current risk-free interest rates consistent with the currency in which cash flows are denominated.

Payable for securities lending: Cash collateral received from the securities lending program is invested in short-term investments and the offsetting liability is included in payable for securities lending. The carrying amount of this liability approximates fair value because of the relatively short period between origination of the liability and expected settlement.

Receivables/payables for securities: Such amounts represent transactions of a short-term nature for which the statement value is considered a reasonable estimate of fair value.

Valuation Methodologies of Financial Instruments Measured at Fair Value

Bonds

Bonds with NAIC 6 or 6* designations and redeemable preferred stocks with NAIC 4, 5 or 6 designations are carried at the lower of amortized cost or fair value. Perpetual preferred stocks are carried at fair value, not to exceed any currently effective call rate. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Whenever available, the Company obtains quoted prices in active markets for identical assets at the balance sheet date to measure bonds at fair value. Market price data generally is obtained from exchange or dealer markets.

The Company estimates the fair value of securities not traded in active markets, by referring to traded securities with similar attributes, using dealer quotations, a matrix pricing methodology, discounted cash flow analyses or internal valuation models. This methodology considers such factors as the issuer’s industry, the security’s rating and tenor, its coupon rate, its position in the capital structure of the issuer, yield curves, credit curves, prepayment rates and other relevant factors. For bonds that are not traded in active markets or that are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments generally are based on available market evidence. In the absence of such evidence, management’s best estimate is used.

Fair values for bonds and preferred stocks based on observable market prices for identical or similar instruments implicitly include the incorporation of counterparty credit risk. Fair values for bonds and preferred stocks based on internal models incorporate counterparty credit risk by using discount rates that take into consideration cash issuance spreads for similar instruments or other observable information.

Common Stocks (Unaffiliated)

Whenever available, the Company obtains quoted prices in active markets for identical assets at the balance sheet date to measure equity securities at fair value. Market price data is generally obtained from exchanges or dealer markets.

Freestanding Derivatives

Derivative assets and liabilities can be exchange-traded or traded OTC. The Company generally values exchange-traded derivatives, such as futures and options, using quoted prices in active markets for identical derivatives at the balance sheet date.

OTC derivatives are valued using market transactions and other observable market evidence whenever possible, including market-based inputs to models, model calibration to market clearing transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

particular model to value an OTC derivative depends on the contractual terms of, and specific risks inherent in, the instrument as well as the availability of pricing information in the market. The Company generally uses similar models to value similar instruments. Valuation models can require a variety of inputs, including contractual terms, market prices and rates, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as generic forwards, swaps and options, model inputs can generally be corroborated by observable market data by correlation or other means, and model selection does not involve significant management judgment.

Certain OTC derivatives trade in less liquid markets with limited pricing information, and the determination of fair value for these derivatives is inherently more difficult. When the Company does not have corroborating market evidence to support significant model inputs and cannot verify the model using market transactions, the transaction price is initially used as the best estimate of fair value. Accordingly, when a pricing model is used to value such an instrument, the model is adjusted so the model value at inception equals the transaction price. Subsequent to initial recognition, the Company updates valuation inputs when corroborated by evidence such as similar market transactions, independent third-party valuation services and/or broker or dealer quotations, or other empirical market data. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used.

Separate Account Assets

Separate account assets are comprised primarily of registered and open-ended variable funds that trade daily and are measured at fair value using quoted prices in active markets for identical assets. Certain separate account assets are carried at amortized cost.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Assets and Liabilities Measured at Fair Value

The following table presents information about assets and liabilities measured at fair value:


(in millions)	Level 1		Level 2		Level 3		Counterparty Netting*			Total
December 31, 2023

Assets at fair value:

Bonds

Industrial and miscellaneous	$	—	$	7	$	2	$	—		$	9
Total bonds		—		7		2		—			9
Preferred stock

Industrial and miscellaneous		—		—		40		—			40
Total preferred stock		—		—		40		—			40
Common stock

Industrial and miscellaneous		—		—		—		—			—
Total common stock		—		—		—		—			—
Derivative assets:

Interest rate contracts		—		6		39		—			45

Foreign exchange contracts		—		54		—		—			54

Equity contracts		1		327		—		—			328

Counterparty netting		—		—		—		(383	)		(383	)
Total derivative assets		1		387		39		(383	)		44
Separate account assets		3,532		1,078		—		—		$	4,610
Total assets at fair value	$	3,533	$	1,472	$	81	$	(383	)	$	4,703
Liabilities at fair value:

Derivative liabilities:

Interest rate contracts	$	—	$	139	$	—	$	—		$	139

Foreign exchange contracts		—		34		—		—			34

Equity contracts		—		202		—		—			202

Counterparty netting		—		—		—		(383	)		(383	)
Total derivative liabilities		—		375		—		(383	)		(8	)
Total liabilities at fair value	$	—	$	375	$	—	$	(383	)	$	(8	)
December 31, 2022

Assets at fair value:

Bonds

Industrial and miscellaneous	$	—	$	7	$	8	$	—		$	15
Total bonds		—		7		8		—			15
Preferred stock

Industrial and miscellaneous		—		—		21		—			21
Total preferred stock		—		—		21		—			21
Common stock

Industrial and miscellaneous		—		—		—		—			—
Total common stock		—		—		—		—			—
Derivative assets:

Interest rate contracts		—		47		14		—			61

Foreign exchange contracts		—		90		—		—			90

Equity contracts		1		53		—		—			54

Counterparty netting		—		—		—		(114	)		(114	)

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)


(in millions)	Level 1		Level 2		Level 3		Counterparty Netting*			Total
Total derivative assets		1		190		14		(114	)		91
Separate account assets		3,272		1,010		—		—			4,282
Total assets at fair value	$	3,273	$	1,207	$	43	$	(114	)	$	4,409
Liabilities at fair value:

Derivative liabilities:

Interest rate contracts	$	—	$	209	$	—	$	—		$	209

Foreign exchange contracts	$	—	$	46	$	—	$	—		$	46

Equity contracts		—		34		—		—			34

Counterparty netting		—		—		—		(114	)		(114	)
Total derivative liabilities		—		289		—		(114	)		175
Total liabilities at fair value	$	—	$	289	$	—	$	(114	)	$	175

* Represents netting of derivative exposures covered by a qualifying master netting agreement.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Changes in Level 3 Fair Value Measurements

The following tables present changes in Level 3 assets and liabilities measured at fair value and the gains (losses) related to the Level 3 assets and liabilities that remained on the Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus:


(in millions)	Bonds			Preferred Stocks		Common Stocks		Derivative Assets			Total Assets
Balance, January 1, 2022	$	36		$	2	$	—	$	—		$	38
Total realized/unrealized capital gains or losses:
Included in net (loss) income		1			—		—		(10	)		(9	)
Included in surplus		(3	)		—		—		10			7
Purchases, issuances and settlements		(55	)		19		—		14			(22	)
Transfers into Level 3		29			—		—		—			29
Transfers out of Level 3		—			—		—		—			—
Balance, December 31, 2022	$	8		$	21	$	—	$	14		$	43

Included in net (loss) income		(1	)		—		—		(27	)		(28	)
Included in surplus		(5	)		—		—		25			20
Purchases, issuances and settlements		—			19		—		27			46
Transfers into Level 3		—			—		—		—			—
Transfers out of Level 3		—			—		—		—			—
Balance, December 31, 2023	$	2		$	40	$	—	$	39		$	81

Assets are transferred out of Level 3 when circumstances change such that significant inputs can be corroborated with market observable data or when the asset is no longer carried at fair value. This may be due to a significant increase in market activity for the asset, a specific event, one or more significant inputs becoming observable or when a long-term interest rate significant to a valuation becomes short-term and thus observable. Transfers out of level 3 can also occur due to favorable credit migration resulting in a higher NAIC designation. Securities are generally transferred into Level 3 due to a decrease in market transparency, downward credit migration and an overall increase in price disparity for certain individual security types. The Company’s policy is to recognize transfers in and out at the end of the reporting period, consistent with the date of the determination of fair value.

In both 2023 and 2022, there were no transfers between Level 1 and Level 2 securities.

Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized capital gains (losses) on instruments held at December 31, 2023 and 2022 may include changes in fair value that were attributable to both observable and unobservable inputs.

Quantitative Information About Level 3 Fair Value Measurements

The Company had no quantitative information about level 3 fair value measurements to report at December 31, 2023.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Gross Basis Fair Value Measurements

The following table presents the Company’s derivative assets and liabilities measured at fair value, on a gross basis, before counterparty and cash collateral netting:


(in millions)	Level 1		Level 2		Level 3		Total
December 31, 2023
Derivative assets at fair value	$	1	$	386	$	39	$	426
Derivative liabilities at fair value		—		(375)		—		(375)

December 31, 2022
Derivative assets at fair value	$	2	$	190	$	14	$	206
Derivative liabilities at fair value		—		(296)		—		(296)

Fair Value Information about Financial Instruments Not Measured at Fair Value

The following table presents the aggregate fair values of the Company’s financial instruments not measured at fair value compared to their statement values:


(in millions)	Aggregate Fair Value		Admitted Assets or Liabilities		Level 1		Level 2		Level 3
December 31, 2023
Assets:
Bonds	$	17,443	$	19,381	$	—	$	14,966	$	2,477
Preferred stocks		6		5		—		6		—
Common stocks		18		18		—		18		—
Cash, cash equivalents and short-term investments		227		227		(20)		247		—
Mortgage loans		3,598		3,876		—		—		3,598
Contract loans		132		132		—		—		132
Derivatives		59		(4)		—		59		—
Receivables for securities		37		37		—		37		—
Separate account assets		1,163		1,163		—		1,163		—
Liabilities:
Policy reserves and contractual liabilities		497		497		—		6		491
Payable for securities		2		2		—		2		—
Derivatives		(4)		(4)		—		(4)		—
December 31, 2022
Assets:
Bonds	$	16,449	$	18,993	$	—	$	13,991	$	2,458
Preferred stocks		6		6		—		6		—
Common stocks		18		18		—		18		—
Cash, cash equivalents and short-term investments		389		389		318		71		—
Mortgage loans		3,606		3,906		—		—		3,606
Contract loans		141		141		—		—		141
Derivatives		(6)		(7)				(6)
Receivables for securities		25		25		—		25		—
Separate account assets		1,130		1,130		—		1,130		—
Liabilities:
Policy reserves and contractual liabilities		542		523		—		8		534
Payable for securities		1		1		—		1		—

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

11. AGGREGATE POLICY RESERVES AND DEPOSIT FUND LIABILITIES

The following table presents the Company’s reserves by major category:


(in millions)	Years ended December 31,
(in millions)	2023			2022
Life insurance	$	3,397		$	3,426
Annuities (excluding supplementary contracts with life contingencies)		16,891			16,840
Supplementary contracts with life contingencies		162			157
Disability - active lives		2			2
Disability - disabled lives		50			55
Excess of VM-21 reserves over basic reserves		90			124
Deficiency reserves		249			237
Other miscellaneous reserve		1,099			1,484
Gross life and annuity reserves		21,940			22,325
Reinsurance ceded		(173	)		(197	)
Net life and annuity reserves		21,767			22,128
Accident and health reserves
Unearned premium reserves		8			8
Present value of amounts not yet due on claims		153			174
Additional contract reserves		45			41
Gross accident and health reserves		206			223
Reinsurance ceded		(15	)		(16	)
Net accident and health reserves		191			207
Aggregate policy reserves	$	21,958			22,335

The following table presents the withdrawal characteristics of annuity actuarial reserves and deposit-type contract funds and other liabilities without life contingencies:

A. Individual Annuities:


	December 31, 2023
(in millions)	General account		Separate account with guarantees		Separate account nonguaranteed		Total		% of Total
(1) Subject to discretionary withdrawal :

a. With market value adjusted	$	3,086	$	—	$	—	$	3,086		16.29	%

b. At book value less current surrender charge of 5% or more		4,088		—		—		4,088		21.58	%

c. At fair value		—		—		3,417		3,417		18.04	%
d. Total with market adjustment or at fair value		7,174		—		3,417		10,591		55.91	%

e. At book value without adjustment (minimal or no charge or adjustment)		5,533		—		—		5,533		29.20	%

(2) Not subject to discretionary withdrawal		2,820		—		1		2,821		14.89	%
(3) Total (gross: direct + assumed)	$	15,527	$	—	$	3,418	$	18,945		100.00	%
(4) Reinsurance ceded		—		—		—		—
(5) Total (net)* (3) - (4)	$	15,527	$	—	$	3,418	$	18,945
(6) Amount included in A(1)b above that will move to A(1)e in the year after statement date:	$	1,117	$	—	$	—	$	1,117

* Reconciliation of total annuity actuarial reserves and deposit fund liabilities.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

B. Group Annuities:

December 31, 2023

(in millions)

General

account

Separate

account with

guarantees

Separate

account

nonguaranteed

Total

% of

Total

(1) Subject to discretionary withdrawal :

a. With market value adjusted

—

b. At book value less current surrender charge of 5% or more

—

c. At fair value

—

1,085

29.03

d. Total with market adjustment or at fair value

—

1,085

29.03

e. At book value without adjustment

(minimal or no charge or adjustment)

447

—

447

11.96

(2) Not subject to discretionary withdrawal

1,078

1,128

—

2,206

59.01

(3) Total (gross: direct + assumed)

1,525

1,128

1,085

3,738

100.00

(4) Reinsurance ceded

—

(5) Total (net)* (3) - (4)

1,525

1,128

1,085

3,738

(6) Amount included in B(1)b above that will move to B(1)e in the year after statement date:

—

* Reconciliation of total annuity actuarial reserves and deposit fund liabilities.

C. Deposit-Type Contracts (no life contingencies):


	December 31, 2023
(in millions)	General account		Separate account with guarantees		Separate account nonguaranteed		Total		% of Total
(1) Subject to discretionary withdrawal :

a. With market value adjusted	$	—	$	—	$	—	$	—		—	%

b. At book value less current surrender charge of 5% or more		—		—		—		—		—	%

c. At fair value		—		—		—		—		—	%
d. Total with market adjustment or at fair value		—		—		—		—		—	%

e. At book value without adjustment (minimal or no charge or adjustment)		5		—		—		5		0.66	%

(2) Not subject to discretionary withdrawal		756		—		1		757		99.34	%
(3) Total (gross: direct + assumed)	$	761	$	—	$	1	$	762		100.00	%
(4) Reinsurance ceded		—		—		—		—
(5) Total (net)* (3) - (4)	$	761	$	—	$	1	$	762
(6) Amount included in C(1)b above that will move to C(1)e in the year after statement date:	$	—	$	—	$	—	$	—

* Represents annuity reserves reported in separate accounts liabilities.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Withdrawal characteristics of Life Actuarial Reserves as of December 31, 2023:


	December 31, 2023
	General Account						Separate Account - Nonguaranteed
(in millions)	Account value		Cash value		Reserve		Account value		Cash value		Reserve
A. Subject to discretionary withdrawal, surrender values, or policy loans:

(1) Term policies with cash value	$	—	$	9	$	22	$	—	$	—	$	—

(2) Universal life		1,143		1,138		1,243		—		—		—

(3) Universal life with secondary guarantees		136		127		727		—		—		—

(4) Indexed universal life		4		4		4		—		—		—

(5) Indexed universal life with secondary guarantees		53		36		66		—		—		—

(6) Indexed life		—		—		—		—		—		—

(7) Other permanent cash value life insurance		57		339		381		11		11		11

(8) Variable life		—		—		—		—		—		—

(9) Variable universal life		1		1		1		12		12		12

(10) Miscellaneous reserves		—		—		—		—		—		—
B. Not subject to discretionary withdrawal or no cash values

(1) Term policies without cash value		XXX		XXX	$	954		XXX		XXX	$	—

(2) Accidental death benefits		XXX		XXX		—		XXX		XXX		—

(3) Disability - active lives		XXX		XXX		2		XXX		XXX		—

(4) Disability - disabled lives		XXX		XXX		50		XXX		XXX		—

(5) Miscellaneous reserves		XXX		XXX		323		XXX		XXX		—
C. Total (gross: direct + assumed)	$	1,394	$	1,654	$	3,773	$	23	$	23	$	23
D. Reinsurance ceded		39		47		173		—		—		—
E. Total (net) (C) - (D)	$	1,355	$	1,607	$	3,600	$	23	$	23	$	23

12. SEPARATE ACCOUNTS

Separate Accounts

The separate accounts held by the Company consist primarily of variable life insurance policies and variable annuities. These contracts generally are non-guaranteed in nature such that the benefit is determined by the performance and/or market value of the investments held in the separate accounts. The net investment experience of the separate accounts is credited directly to the policyholder and can be positive or negative.

The separate accounts also include a funding agreement, which provides a stable value protection feature on the assets held within the account.

The Company does not engage in securities lending transactions within the separate accounts.

The legal insulation of the separate account assets prevents such assets from being generally available to satisfy claims resulting from the general account.

The following table presents separate account assets by product or transaction:


	December 31, 2023				December 31, 2022
(in millions)	Legally Insulated Assets		Separate Accounts Assets (Not Legally Insulated)		Legally Insulated Assets		Separate Accounts Assets (Not Legally Insulated)
Variable annuity products	$	4,623	$	—	$	4,300	$	—
Variable universal life products		23		—		20		—
Pension risk transfer annuities		1,128		—		1,092		—
Total	$	5,774	$	—	$	5,412	$	—

Some separate account liabilities are guaranteed by the general account. To compensate the general account for the risks taken, the separate accounts pay risk charges to the general account.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

If claims were filed on all contracts, the current total maximum guarantee the general account would provide to the separate account as of December 31, 2023 and 2022 is $109 million and $246 million, respectively.

There was no separate account business seed money at December 31, 2023 and 2022.

The following table presents the risk charges paid by the separate accounts and the guarantees paid by the general account:


(in millions)	Risk Charge paid by the Separate Account		Guarantees Paid by the General Account
2023	$	55	$	2

2022		63		2

2021		53		1

2020		45		—

2019		37		—

The following table presents information regarding the separate accounts:


(in millions)	Indexed		Non- indexed guarantee less than or equal to 4%		Non- indexed guarantee more than 4%		Non- guaranteed separate accounts		Total
December 31, 2023
Premiums, considerations or deposits	$	—	$	—	$	—	$	267	$	267
Reserves for accounts with assets at:
Market value	$	—	$	—	$	—	$	4,530	$	4,530
Amortized costs		—		1,128		—		—		1,128
Total reserves	$	—	$	1,128	$	—	$	4,530	$	5,658
By withdrawal characteristics:
Subject to discretionary withdrawal with MVA	$	—	$	1,128	$	—	$	—	$	1,128
At market value		—		—		—		4,528		4,528
Subtotal		—		1,128		—		4,528		5,656
Not subject to discretionary withdrawal		—		—		—		2		2
Total reserves	$	—	$	1,128	$	—	$	4,530	$	5,658
December 31, 2022
Premiums, considerations or deposits	$	—	$	—	$	—	$	299	$	299
Reserves for accounts with assets at:
Market value	$	—	$	—	$	—	$	4,194	$	4,194
Amortized costs		—		1,092		—		—		1,092
Total reserves	$	—	$	1,092	$	—	$	4,194	$	5,286
By withdrawal characteristics:
Subject to discretionary withdrawal with MVA	$	—	$	1,092	$	—	$	—	$	1,092
At market value		—		—		—		4,192		4,192
Subtotal		—		1,092		—		4,192		5,284
Not subject to discretionary withdrawal		—		—		—		2		2
Total reserves	$	—	$	1,092	$	—	$	4,194	$	5,286

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Reconciliation of Net Transfers to or from Separate Accounts

The following table presents a reconciliation of the net transfers to (from) separate accounts:


	Years Ended December 31,
(in millions)	2023		2022		2021
Transfers to separate accounts	$	267	$	299	$	1,178
Transfers from separate accounts		(327)		(312)		(331)
Net transfers to (from) separate accounts		(60)		(13)		847
Reconciling adjustments:
Deposit-type contracts		—		—		—
Total reconciling adjustments		—		—		—
Transfers as reported in the Statutory Statements of Operations	$	(60)	$	(13)	$	847

13. RESERVES FOR GUARANTEED POLICY BENEFITS AND ENHANCEMENTS

Variable annuity contracts may include certain contractually guaranteed benefits to the contract holder. These guaranteed features include GMDB that are payable in the event of death, and living benefits that are payable in the event of annuitization, or, in other instances, at specified dates during the accumulation period. Living benefits include guaranteed minimum withdrawal benefits (“GMWB”) and, to a lesser extent, guaranteed minimum accumulation benefits (“GMAB”), which are no longer offered. A variable annuity contract may include more than one type of guaranteed benefit feature; for example, it may have both a GMDB and a GMWB. However, a policyholder generally can only receive payout from one guaranteed feature on a contract containing a death benefit and a living benefit, i.e. the features are mutually exclusive. A policyholder cannot purchase more than one living benefit on one contract.

Reserves for GMDB and GMWB were included in the VACARVM reserves. Total reserves in excess of basic reserves were $90 million and $124 million at December 31, 2023 and 2022, respectively.

GMDB

Depending on the product, the GMDB feature may provide a death benefit of either (a) total deposits made to the contract less any partial withdrawals plus a minimum return or (b) the highest contract value attained, typically on any anniversary date minus any subsequent withdrawals following the contract anniversary.

GMWB

Certain of the Company’s variable annuity contracts offer optional GMWB. With a GMWB, the contract holder can monetize the excess of the guaranteed amount over the account value of the contract only through a series of withdrawals that do not exceed a specific percentage per year of the guaranteed amount. If, after the series of withdrawals, the account value is exhausted, the contract holder will receive a series of annuity payments equal to the remaining guaranteed amount, and, for lifetime GMWB products, the annuity payments continue as long as the covered person(s) are living.

14. PARTICIPATING POLICY CONTRACTS

Participating policy contracts entitle a policyholder to share in earnings through dividend payments. These contracts represented 3.4 percent, 7.0 percent and 10.8 percent of gross insurance in-force at December 31, 2023, 2022 and 2021, respectively. Policyholder dividends for the years ended December 31, 2023, 2022 and 2021 were immaterial.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

15. PREMIUM AND ANNUITY CONSIDERATIONS DEFERRED AND UNCOLLECTED

The following table presents the deferred and uncollected insurance premiums and annuity consideration (before deduction for amounts non-admitted):


	December 31, 2023				December 31, 2022
(in millions)	Gross		Net of Loading		Gross		Net of Loading
Ordinary new business		2		2		—		—
Ordinary renewal		18		50		18		46
Total	$	20	$	52	$	18	$	46

16. REINSURANCE

In the ordinary course of business, the Company utilizes internal and third-party reinsurance transactions to manage insurance risks and to facilitate capital management strategies. Long-duration reinsurance is effected principally under yearly renewable term treaties. Pools of highly-rated third party reinsurers are utilized to manage net amounts at risk in excess of retention limits. Reinsurance agreements do not relieve the Company of its direct obligations to insureds and beneficiaries. Thus, a credit exposure exists with respect to reinsurance ceded to the extent that any reinsurer fails to meet the obligations assumed under any reinsurance agreement. In addition, the Company assumes reinsurance from other insurance companies.

Reinsurance premiums assumed and reserves on reinsurance assumed were not significant in 2023, 2022 or 2021. Reinsurance premiums ceded in 2023, 2022 and 2021 were $152 million, $133 million and $205 million, respectively. The reserve credit taken on reinsurance ceded was $188 million and $213 million at December 31, 2023 and 2022, respectively. Amounts payable or recoverable for reinsurance on policy and contract liabilities are not subject to periodic or maximum limits. At December 31, 2023 and 2022, the Company’s reinsurance recoverables were $25 million and $49 million, respectively.

The Company has a coinsurance/modified coinsurance agreement (the “Co/Modco Agreement”) with Corebridge Bermuda. Under the Co/Modco Agreement, Corebridge Bermuda reinsures a 90 percent quota share of the Company’s net liability on term life contracts issued by the Company with issue dates on or after March 1, 2002 through August 1, 2009. Corebridge Bermuda is a Bermuda licensed insurer but is not accredited as a reinsurer in the State of New York. At December 31, 2023 and 2022, the Company did not report any liabilities for unauthorized reinsurance, as the coinsurance reserves ($92 million and $116 million, respectively) ceded to Corebridge Bermuda were fully secured by a letter of credit. The letter of credit, secured by Corebridge Bermuda for the benefit of the Company, contain applicable provisions required by NAIC SAP and are subject to reimbursement by Corebridge in the event of a drawdown. In addition, there are certain terms and conditions regarding events of default, which if triggered by future events, would require the Company to pursue a variety of remedies to preserve the amount of the reserve credit. Pursuant to the modified coinsurance portion of the Co/Modco Agreement, the Company does not record a reserve credit since it retains, controls, and owns all assets held in relation to the modified coinsurance reserve.

The Co/Modco Agreement decreased the Company’s pre-tax earnings by $56 million, $78 million and $68 million in 2023, 2022 and 2021, respectively. The agreement is unlimited in duration, but was amended to terminate for new business issued on and after August 1, 2009.

As of December 31, 2023, $5 billion of the Company’s reserves representing a mix of run-off life and annuity risks were ceded to Fortitude Reinsurance Company Ltd.(“Fortitude Re”) under modified coinsurance agreements.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

17. FEDERAL INCOME TAXES

Recent U.S. Tax Law Changes

On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022, which finances climate and energy provisions and an extension of enhanced subsidies under the Affordable Care Act with a 15%, CAMT, on adjusted financial statement income for corporations with profits over $1 billion, a 1% stock buyback tax, increased Internal Revenue Service (“IRS”) enforcement funding, and Medicare’s new ability to negotiate prescription drug prices. The AGC Life Insurance Company consolidated federal income tax return group, of which the Company is a member, has determined that as of the reporting date it is an applicable reporting entity for the CAMT.

Although the U.S. Treasury and IRS issued interim CAMT guidance during 2023, many details and specifics of application of the CAMT remain subject to future guidance. The Company’s estimated CAMT liability will continue to be refined based on future guidance.

The following table presents the components of the net deferred tax assets and liabilities :


	December 31, 2023						December 31, 2022						Change

(in millions)	Ordinary		Capital		Total		Ordinary		Capital		Total		Ordinary			Capital			Total
Gross DTA	$	679	$	138	$	817	$	746	$	159	$	905	$	(67	)	$	(21	)	$	(88	)

Statutory valuation allowance adjustment		—		23		23		—		29		29		—			(6	)		(6	)
Adjusted gross DTA		679		115		794		746		130		876		(67	)		(15	)		(82	)

DTA non-admitted		485		115		600		524		130		654		(39	)		(15	)		(54	)
Net admitted DTA		194		—		194		222		—		222		(28	)		—			(28	)

DTL		26		—		26		36		—		36		(10	)		—			(10	)
Total	$	168	$	—	$	168	$	186	$	—	$	186	$	(18	)	$	—		$	(18	)

The following table presents the ordinary and capital DTA admitted assets as the result of the application of SSAP 101:


	December 31, 2023						December 31, 2022						Change

(in millions)	Ordinary		Capital		Total		Ordinary		Capital		Total		Ordinary			Capital		Total
Admission calculation components
SSAP 101

Federal income taxes paid in prior years recoverable through loss carry backs	$	—	$	—	$	—	$	—	$	—	$	—	$	—		$	—	$	—

Adjusted gross DTA expected to be realized (excluding amount of DTA from above) after application of the threshold limitation		168		—		168		186		—		186		(18	)		—		(18	)

1. Adjusted gross DTA expected to be realized following the reporting date		168		—		168		186		—		186		(18	)		—		(18	)

2. Adjusted gross DTA allowed per limitation threshold		—		—		378		—		—		285		—			—		93

Adjusted gross DTA (excluding the amount of DTA from above) offset by gross DTL		26		—		26		36		—		36		(10	)		—		(10	)
DTA admitted as the result of application of SSAP 101	$	194	$	—	$	194	$	222	$	—	$	222	$	(28	)	$	—	$	(28	)

The following table presents the ratio percentage and amount of adjusted capital to determine the recovery period and threshold limitation amount:


	Years Ended December 31,
($ in millions)	2023			2022
Ratio percentage used to determine recovery period and threshold limitation amount		1,100	%		768	%

Amount of adjusted capital and surplus used to determine recovery period and threshold limitation amount	$	2,521		$	1,901

The Company has no tax planning strategies used in the determination of adjusted gross DTA’s or net admitted DTA’s.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

The Company’s planning strategy does not include the use of reinsurance.

The Company is not aware of any significant DTLs that are not recognized in the statutory financial statements.

The following tables present the major components of the current income tax expense and net deferred tax assets (liabilities):


	Years Ended December 31,
(in millions)	2023		2022		2021
Current income tax expense

Federal	$	46	$	143	$	132

Federal income tax on net capital gains (losses)		(7)		(35)		2
Federal income tax incurred		39		108		134

	Years Ended December 31,
(in millions)	2023		2022		Change
Deferred tax assets:

Ordinary:

Policyholder reserves	$	511	$	562	$	(51)

Investments		29		32		(3)

Deferred acquisition costs		133		136		(3)

Fixed assets		5		4		1

Net operating loss carry forward		—		8		(8)

Tax credit carryforward		—		—		—

Other (including items less than 5% of total ordinary tax assets)		1		4		(3)
Subtotal		679		746		(67)

Non-admitted		485		524		(39)
Admitted ordinary deferred tax assets		194		222		(28)
Capital:

Investments		138		159		(21)

Real Estate		—		—		—
Subtotal		138		159		(21)

Statutory valuation allowance adjustment		23		29		(6)

Non-admitted		115		130		(15)
Admitted capital deferred tax assets		—		—		—
Admitted deferred tax assets		194		222		(28)
Deferred tax liabilities:

Ordinary:

Deferred and uncollected premium		16		16		—

Policyholder reserves		10		20		(10)
Deferred tax liabilities		26		36		(10)
Net deferred tax assets	$	168	$	186	$	(18)

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

The change in net deferred income taxes is comprised of the following (this analysis is exclusive of non-admitted assets as the change in non-admitted assets and the change in net deferred income taxes are reported in separate components of capital and surplus):


	Years Ended December 31,
(in millions)	2023		2022		Change
Total adjusted deferred tax assets	$	794	$	876	$	(82	)

Total deferred tax liabilities	$	26	$	36	$	(10	)
Net adjusted deferred tax assets	$	768	$	840	$	(72	)
Tax effect of unrealized gains (losses)					$	8
Change in net deferred income tax					$	(64	)

The provision for incurred federal taxes is different from that which would be obtained by applying the statutory federal income tax rate to income before income taxes. The following table presents the significant items causing this difference:


	December 31, 2023						December 31, 2022						December 31, 2021
(in millions)	Amount			Effective Tax Rate			Amount			Effective Tax Rate			Amount			Effective Tax Rate
Income tax expense at applicable rate	$	136			21.0	%	$	6			21.0	%	$	66			21.0	%
Change in valuation adjustment		(6	)		(1.0	)		29			97.8
Surplus adjustments		(2	)		(0.4	)		1			3.2			(2	)		(0.5	)
Prior year return true-ups and adjustments		(5	)		(0.8	)		(2	)		(5.8	)		(1	)		(0.2	)
Amortization of interest maintenance reserve		(15	)		(2.3	)		(18	)		(62.2	)		17			5.3
Change in non-admitted assets		(3	)		(0.4	)		(1	)		(5.7	)		4			1.3
Dividend received deduction		(2	)		(0.3	)		(1	)		(2.9	)		(1	)		(0.3	)
Other permanent adjustments		(1	)		(0.1	)		—			—			1			0.3
Credits		—			—			—			—			—			—
Statutory income tax expense (benefit)	$	102			15.7	%	$	14			45.4	%	$	84			26.9	%

Federal income taxes incurred	$	38			5.9	%	$	108			362.1	%	$	134			42.8	%
Change in net deferred income taxes		64			9.8			(94	)		(316.7	)		(50	)		(15.9	)
Total statutory income taxes	$	102			15.7	%	$	14			45.4	%	$	84			26.9	%

At December 31, 2023, the Company had no foreign tax credits carryforwards.

At December 31, 2023, the Company had no U.S federal operating loss carryforwards.

At December 31, 2023, the Company had no capital loss carryforwards.

At December 31, 2023, the Company had no general business credit carryforwards.

At December 31, 2023, the Company had no alternative minimum tax credits.

At December 31, 2023, the Company had no CAMT credits.

The following table presents income tax incurred that is available for recoupment in the event of future net losses:


(in millions) December 31,	Capital
2021	$	95

2022		—

2023		—
Total	$	95

In general, realization of DTAs depends on a company’s ability to generate sufficient taxable income of the appropriate character within the carryforward periods in the jurisdictions in which the net operating losses and deductible temporary differences were incurred. In accordance with the requirements established in SSAP 101, the Company assessed its

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

ability to realize DTAs of $817 million and concluded that $23 million valuation allowance was required at December 31, 2023. The Company had concluded that $29 million valuation allowance was required on the DTAs of $876 million at December 31, 2022.

The Company had no deposits admitted under Internal Revenue Code Section 6603.

The following table presents a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits, excluding interest and penalties:


	Years Ended December 31,
(in millions)	2023		2022
Gross unrecognized tax benefits at beginning of year	$	—	$	—

Increases in tax position for prior years		—		—

Decreases in tax position for prior years		—		—
Gross unrecognized tax benefits at end of year	$	—	$	—

At December 31, 2023 and 2022, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $0.4 million and $0.4 million, respectively.

Interest and penalties related to unrecognized tax benefits are recognized in income tax expenses. At both December 31, 2023 and 2022, the Company had accrued less than $1 million for the payment of interest (net of federal benefit) and penalties. In 2023, 2022 and 2021, the Company recognized an expense of less than $1 million, net of federal benefit, and penalties.

The Company regularly evaluates proposed adjustments by taxing authorities. At December 31, 2023, such proposed adjustments would not have resulted in a material change to the Company’s financial condition, although it is possible that the effect could be material to the Company’s results of operations for an individual reporting period. Although it is reasonably possible that a change in the balance of unrecognized tax benefits may occur within the next twelve months, based on the information currently available, the Company does not expect any change to be material to its financial condition.

The Company is currently under IRS examinations for the taxable years 2011-2019 and engaging in the IRS Appeals process in regard to years 2007-2010. Although the final outcome of possible issues raised in any future examination are uncertain, the Company believes that the ultimate liability, including interest, will not materially exceed amounts recorded in the financial statements. The Company’s taxable years 2007-2022 remain subject to examination by major tax jurisdictions.

The Company is not subject to the repatriation transition tax for the year ended December 31, 2023.

For the period prior to the Corebridge IPO on September 19, 2022, the Company joined in the filing of a consolidated federal income tax return with AIG. For the period following the IPO, the Company will join with AGC Life, AGL, VALIC and Corebridge Bermuda in filing a consolidated life company federal income tax return.

The Company has written agreements with both parent entities, AIG and AGC Life, under which each subsidiary agrees to pay the parent company an amount equal to the consolidated federal income tax expense multiplied by the ratio that the subsidiary’s separate return tax liability bears to the consolidated tax liability, plus one hundred percent of the excess of the subsidiary’s separate return tax liability over the allocated consolidated tax liability. Both AIG and AGC Life agree to pay each subsidiary for the tax benefits, if any, of net operating losses, net capital losses and tax credits which are not usable by the subsidiary but which are used by other members of the consolidated group.

The Company may be charged with a portion of CAMT incurred by the AGC Life consolidated group (or credited with a portion of the consolidated group’s CAMT credit utilization).

18. CAPITAL AND SURPLUS

RBC standards are designed to measure the adequacy of an insurer’s statutory capital and surplus in relation to the risks inherent in its business. The RBC standards consist of formulas that establish capital requirements relating to asset, insurance, business and interest rate risks. The standards are intended to help identify companies that are under-capitalized, and require specific regulatory actions in the event an insurer’s RBC is deficient. The RBC formula develops

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

a risk-adjusted target level of adjusted statutory capital and surplus by applying certain factors to various asset, premium and reserve items. Higher factors are applied to more risky items and lower factors are applied to less risky items. Thus, the target level of statutory surplus varies not only because of the insurer’s size, but also on the risk profile of the insurer’s operations. At December 31, 2023, the Company exceeded RBC requirements that would require any regulatory action.

The Company is subject to New York Insurance Law (“NYIL”), which imposes certain restrictions on shareholder dividends and has two different standards for determination of ordinary dividends (Sections 4207(a)(2) and 4207(a)(3)). Based on current management estimates, the Company would elect the standard under NYIL Section 4207(a)(2). Under Section 4207(a)(2), the maximum amount of dividends that can be paid by New York domiciled life insurance companies out of earned surplus without prior notice to the NYDFS in a calendar year is the greater of (1) 10 percent of surplus as regards policyholders as of the immediately preceding calendar year or (2) the net gain from operations of the Company for the immediately preceding calendar year. Section 4207(a)(2) further provides that an insurer may not distribute an ordinary dividend in the calendar year immediately following a calendar year in which the insurer’s net gain from operations, not including realized capital gains, was negative, without the approval of the NYDFS Superintendent. Other than the limitations discussed above, there are no restrictions placed on the portion of the Company’s profits that may be paid as ordinary dividends to its shareholder. The maximum amount of dividends that the Company may pay to AGC Life (as immediate parent company) without prior approval of the NYDFS in 2024 is $322 million, subject to availability of earned surplus.

Dividends are paid as determined by the Board of Directors and are noncumulative. The following table presents the dividends paid by the Company during 2023, 2022 and 2021:


Date	Type	Cash or Non-cash	Amount (in millions)
2023
—	—	—	$ —

2022
March 28, 2022	Ordinary	Cash	200

2021
March 15, 2021	Ordinary	Cash	101

19. RETIREMENT AND SHARE-BASED AND DEFERRED COMPENSATION

The Company does not directly sponsor any defined benefit or defined contribution plans and does not participate in any multi-employer plans.

Employee Retirement and Postretirement Benefit Plans

Certain employees and retirees of the Company participated in various AIG-sponsored defined benefit pension and postretirement plans. AIG, as sponsor, is ultimately responsible for the maintenance of these plans in compliance with applicable laws. The Company is not directly liable for obligations under these plans; its obligation results from AIG’s allocation of the Company’s share of expenses from the plans based on participants’ earnings for the pension plans and on estimated claims less contributions from participants for the postretirement plans.

The following table presents information about employee-related costs (expense credits) allocated to the Company:


	Years Ended December 31,
(in millions)	2023		2022			2021
Defined benefit plans	$	1	$	(1	)	$	(1	)
Total	$	1	$	(1	)	$	(1	)

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Defined Contribution Plan

Prior to August 22, 2022, the Company’s employees participated in AIG’s qualified defined contribution plan that provided for contributions by employees, as well as an employer contribution. On August 22, 2022, participants’ accounts in the AIG plan were transferred to the Corebridge Financial Inc. Retirement Savings 401(k) Plan.

The 401(k) plan provides for pre-tax salary reduction contributions by its U.S. employees. Employer matching contributions of 100 percent were made on the first six percent of participant contributions, subject to IRS-imposed limitations, and an additional fully vested, non-elective, non-discretionary employer contribution equal to three percent of the participant’s annual base compensation for the plan year, paid each pay period regardless of whether the participant currently contributes to the plan, and subject to the IRS-imposed limitations.

The Company’s pre-tax expense associated with this plan was $3 million, $3 million and $3 million in 2023, 2022 and 2021, respectively.

Share-based and Deferred Compensation Plans

Prior to the IPO, certain Corebridge employees received grants of equity awards under the AIG Long Term Incentive Plan (as amended) and its predecessor plan, the AIG 2013 Long Term Incentive Plan, which are governed by the AIG 2013 Omnibus Incentive Plan. The value of AIG equity awards are linked to the performance of AIG’s common stock. AIG granted equity awards to the Company’s employees primarily in the form of AIG restricted stock units (“RSUs”) but also granted AIG performance share units (“PSUs”) and AIG stock options to certain executives. AIG RSUs that were held by the Company’s active employees on September 14, 2022 (the pricing date for the IPO) were converted into RSUs linked to the performance of Corebridge stock (“Corebridge RSUs”), on terms and conditions that are substantially the same as the corresponding AIG RSUs, with the number of AIG RSUs adjusted in a manner intended to preserve their intrinsic value as of immediately before and immediately following the conversion (subject to rounding).

Following the IPO, the Company’s employees participate in several stock compensation programs under the Corebridge Financial, Inc. Long-term Incentive Plan (each as applicable, the “LTIP”), which are governed by the Corebridge Financial, Inc. 2022 Omnibus Incentive Plan, as amended and restated on February 16, 2023. Corebridge’s LTIP provides for an annual award to certain employees, including senior executive officers and other highly compensated employees, that may comprise a combination of one or more of the following units: RSUs or stock options. RSUs and stock options are earned based solely on continued service by the participant and vesting occurs in three equal installments on the first, second and third anniversaries of the grant date.

The Company recognized compensation expenses of $0 million, $3 million and $3 million for the years ending December 31, 2023, 2022 and 2021, respectively, on the grant date of the awards.

20. DEBT

The Company is a member of the Federal Home Loan Bank (“FHLB”) of New York.

Membership with the FHLB provides the Company with collateralized borrowing opportunities, primarily as an additional source of liquidity or for other uses deemed appropriate by management. The Company’s ownership in the FHLB stock is reported as common stock. Pursuant to the membership terms, the Company elected to pledge such stock to the FHLB as collateral for the Company’s obligations under agreements entered into with the FHLB.

Cash advances obtained from the FHLB are reported in and accounted for as borrowed money. The Company may periodically obtain cash advances on a same-day basis, up to a limit determined by management and applicable laws. The Company is required to pledge certain mortgage-backed securities, government and agency securities and other qualifying assets to secure advances obtained from the FHLB. To provide adequate collateral for potential advances, the Company has pledged securities to the FHLB in excess of outstanding borrowings. Upon any event of default by the Company, the recovery by the FHLB would generally be limited to the amount of the Company’s liability under advances borrowed.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

The following table presents the aggregate carrying value of stock held with the FHLB of New York and the classification of the stock:


	December 31,
(in millions)	2023		2022
Membership stock - Class B	$	7	$	7

Activity stock		11		11

Excess stock		—		—
Total	$	18	$	18
Actual or estimated borrowing capacity as determined by the insurer	$	935	$	1,022

The Company did not hold any Class A at December 31, 2023 or 2022.

The following table presents the amount of collateral pledged, including FHLB common stock held, to secure advances from the FHLB:

December 31, 2023

December 31, 2022

(in millions)

Amortized
Cost

Fair Value

Amortized
Cost

Fair Value

Amount pledged

534

497

396

372

Maximum amount pledged during reporting period

723

684

415

431

The Company’s borrowing capacity determined quarterly based upon the borrowing limit imposed by statute in the state of domicile.

The following table presents the outstanding funding agreements and maximum borrowings from the FHLB:


	December 31,
(in millions)	2023		2022
Amount outstanding	$	240	$	240

Maximum amount borrowed during reporting period	$	240	$	240

While the funding agreements are presented herein to show all amounts received from FHLB, the funding agreements are treated as deposit-type contracts, consistent with the other funding agreements for which the Company’s intent is to earn a spread and not to fund operations. The Company had no debt outstanding with the FHLB at December 31, 2023 or 2022.

The following table reflects the principal amounts of the funding agreements issued to the FHLB:


(in millions)
Funding Agreements	Date Issued	Amounts
5-year fixed rate	February 25, 2020	$	124
5-year fixed rate	April 5, 2019		42
5-year fixed rate	April 16, 2019		52
6-year fixed rate	July 15, 2019		23

21. COMMITMENTS AND CONTINGENCIES

Commitments

The Company had commitments to provide funding to various limited partnerships totaling $525 million and $669 million at December 31, 2023 and 2022, respectively. The commitments to invest in limited partnerships and other funds may be called at the discretion of each fund, as needed and subject to the provisions of such fund’s governing documents, for funding new investments, follow-on investments and/or fees and other expenses of the fund. Of the total commitments at December 31, 2023, $265 million are currently expected to expire in 2024, and the remainder by 2029 based on the expected life cycle of the related funds and the Company’s historical funding trends for such commitments.

At December 31, 2023 and 2022, the Company had $332 million and $612 million, respectively, of outstanding commitments related to various funding obligations associated with its investments in commercial mortgage loans. Of

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

the total current commitments, $129 million are expected to expire in 2024 and the remainder by 2036, based on the expected life cycle of the related loans and the Company’s historical funding trends for such commitments.

The Company has various leases, substantially all of which are for office space and facilities. Rentals under financing leases, contingent rentals, future minimum rental commitments, and rental expense under operating leases are not material.

Contingencies

Legal Matters

Various lawsuits against the Company have arisen in the ordinary course of business. The Company believes it is unlikely that contingent liabilities arising from such lawsuits will have a material adverse effect on the Company’s financial position, results of operations or cash flows.

Regulatory Matters

Various federal, state or other regulatory agencies may from time to time review, examine or inquire into the operations, practices and procedures of the Company, such as through financial examinations, subpoenas, investigations, market conduct exams or other regulatory inquiries. Based on the current status of pending regulatory examinations, investigations, and inquiries involving the Company, the Company believes it is not likely that these regulatory examinations, investigations, or inquiries will have a material adverse effect on the financial position, results of operations or cash flows of the Company.

Other Contingencies

All fifty states and the District of Columbia have laws requiring solvent life insurance companies, through participation in guaranty associations, to pay assessments to protect the interests of policyholders of insolvent life insurance companies. These state insurance guaranty associations generally levy assessments, up to prescribed limits, on member insurers in a particular state based on the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer is engaged. Such assessments are used to pay certain contractual insurance benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. The Company accrues liabilities for guaranty fund assessments (“GFA”) when an assessment is probable and can be reasonably estimated. The Company estimates the liability using the latest information available from the National Organization of Life and Health Insurance Guaranty Associations. While the Company cannot predict the amount and timing of any future GFA, the Company has established reserves it believes are adequate for assessments relating to insurance companies that are currently subject to insolvency proceedings.

The Company accrued $2 million at December 31, 2023 and $2 million at December 31, 2022, for GFA. The Company has recorded receivables of $432 thousand and $476 thousand at December 31, 2023 and 2022, respectively, for expected recoveries against the payment of future premium taxes.

22. RELATED PARTY TRANSACTIONS

Events Related to AIG and Corebridge

Separation of Life and Retirement Business from AIG and Relationship with Blackstone

On September 19, 2022, Corebridge completed an IPO in which AIG sold 80 million shares of Corebridge common stock to the public. Since the IPO, AIG has sold 159.8 million shares of Corebridge common stock and Corebridge has repurchased 17.2 million shares of its common stock from AIG. As of December 31, 2023, AIG owns 52.2% of outstanding common stock of Corebridge.

On November 2, 2021, Argon Holdco LLC (“Argon”), a wholly-owned subsidiary of Blackstone, Inc. (“Blackstone”), acquired a 9.9% equity stake in Corebridge and Corebridge entered into a long-term asset management relationship with Blackstone ISG-1 Advisors L.L.C (“Blackstone IM”). Pursuant to the partnership, Corebridge initially transferred $50 billion in book value of assets in its consolidated investment portfolio to Blackstone IM, with that amount to increase to an aggregate of $92.5 billion by the third quarter of 2027. As of December 31, 2023, Blackstone IM managed approximately $55.4 billion in book value of assets in Corebridge’s investment portfolio.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Pursuant to the Stockholders’ Agreement that Corebridge entered into with AIG and Argon at the time of acquisition of Argon’s Corebridge equity stake, Argon may not sell its ownership interest in Corebridge subject to exceptions permitting Argon to sell 25%, 67% and 75% of its shares after the first, second and third anniversaries, respectively, of the IPO, with the transfer restrictions terminating in full on the fifth anniversary of the IPO. Also, until Argon no longer owns at least 50% of its initial investment in Corebridge, it will have the right to designate for nomination for election one member of the Corebridge Board of Directors.

Prior to the IPO, Corebridge and certain U.S. subsidiaries were included in the consolidated federal income tax return of AIG as well as certain state tax returns where AIG files on a combined or unitary basis. The provision for income taxes is calculated on a separate return basis. Following the IPO, AIG owns a less than 80% interest in Corebridge, resulting in tax deconsolidation of Corebridge from the AIG Consolidated Tax Group and in a small minority of state jurisdictions which follow federal consolidation rules, the most significant being Florida. In addition, under the applicable law, AGC Life and its directly owned life insurance subsidiaries (the “AGC Group”) will not be permitted to join in the filing of a U.S. consolidated federal income tax return with other subsidiaries (collectively, the “Non-Life Group”) for the five year waiting period. Instead, the AGC Group is expected to file separately as members of the AGC consolidated U.S. federal income tax return during the five-year waiting period. Following the five-year waiting period, the AGC Group is expected to join the U.S. consolidated federal income tax return with the Non-Life Group.

Investment Management Agreements with BlackRock

Since April 2022, certain of the Corebridge insurers, including the Company, entered into investment management agreements with BlackRock Financial Management, Inc. (“BlackRock”) and its investment advisory affiliates. Under the investment management agreements with BlackRock, Corebridge completed the transfer of the management of liquid fixed income and certain private placement assets to BlackRock in 2022. As of December 31, 2023, BlackRock managed approximately $85.3 billion in book value of assets in Corebridge’s consolidated investment portfolio. In addition, liquid fixed income assets associated with the Fortitude Re portfolio were separately transferred to BlackRock for management in 2023. The investment management agreements contain detailed investment guidelines and reporting requirements. These agreements also contain reasonable and customary representations and warranties, standard of care, expense reimbursement, liability, indemnity and other provisions.

Affiliate Transactions

During 2023, the Company purchased $114 million and sold $107 million of securities, at fair market value, from or to one or more of its affiliates in the ordinary course of business.

At December 31, 2023, the Company’s unfunded capital commitment to U.S. Fund I, U.S. Fund II, U.S Fund III, Europe Fund I and Europe Fund II were approximately $21.7 million, $14.7 million, $12.7 million, $30.9 million, $6.8 million and $24.8 million, respectively.

At December 31, 2022, the company’s unfunded capital commitment to US Fund I, US Fund II, US Fund III, US Fund IV, Europe Fund I and Europe Fund II (which are managed by an affiliate) were approximately $21.7 million, $15.8 million, $13 million, $41.7 million, $6.5 million and $31.8 million, respectively.

On September 9, 2022, the Company purchased $165 million of mortgage loans securities from an affiliated company American Home Assurance Company.

Financing Agreements

On May 17, 2022, the Company and certain of its affiliates entered into a revolving loan facility with Corebridge, pursuant to which the Company and each such affiliate can, on a several basis, borrow monies from Corebridge (as lender) subject to the terms and conditions stated therein. Principal amounts borrowed under this facility may be repaid and re-borrowed, in whole or in part, from time to time, without penalty. However, the total aggregate amount of loans borrowed by all borrowers under the facility cannot exceed $500,000,000. The loan facility also sets forth individual borrowing limits for each borrower, with the Company’s maximum borrowing limit being $500,000,000.

At both December 31, 2023 and 2022, the Company did not have a balance outstanding under this facility.

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Investments in Subsidiary, Controlled and Affiliated Entities

The following table presents information regarding the Company’s investments in non-insurance SCA entities as of December 31, 2023:


(in millions)	Gross Amount		Non- admitted Amount		Admitted Asset Amount		Date of NAIC Filing
Clinton Grand Holdings LLC	$	8			$	8		NA
AIG LIQUID ALTERNATIVE EQUITY ALPHA FUND, LLC		1				1		NA
Corebridge REI LB Southeast Industrial JV LLC		58				58		NA
Bayshore PII Company LLC		3				3		NA
Corebridge Europe Real Estate Fund II LR Feeder, LLC		26				26		NA
Corebridge Deco Fund II, LLC		145				145		NA
Branch Retail Partners II, LP		2				2		NA

GRE LB Industrial Joint Venture II, LP		5				5		NA
Corebridge U.S. Real Estate Fund IV Development Sidecar LP		10				10		NA
Corebridge U.S. Real Estate Fund IV, LP		41				41		NA
Bayshore Shopping Center JV LLC		7				7		NA
Corebridge U.S. Real Estate Fund III, LP		27				27		NA
Corebridge U.S. Real Estate Fund I, LP		17				17		NA
Corebridge U.S. Real Estate Fund II, LP		22				22		NA
Corebridge U.S. LT Apartments JV, LP		21				21		NA
Corebridge Europe Real Estate Fund I S.C.SP		3				3		NA
Total	$	396	$	—	$	396

Operating Agreements

The Company has investments in a Liquidity Pool in which funds are managed by an affiliate, AIG Asset Management (U.S.), LLC, in the amount of $240 million and $62 million at December 31, 2023 and 2022, respectively.

Pursuant to service and expense agreements, AIG, Corebridge and affiliates provide, or cause to be provided, administrative, marketing, investment management, accounting, occupancy, and data processing services to the Company. The allocation of costs for services is based generally on estimated levels of usage, transactions or time incurred in providing the respective services. Generally, these agreements provide for the allocation of costs upon either the specific identification basis or a proportional cost allocation basis which management believes to be reasonable. In all cases, billed amounts pursuant to these agreements do not exceed the cost to AIG, Corebridge or the affiliate providing the service. The Company was charged $112 million, $108 million and $103 million under such agreements in 2023, 2022 and 2021, respectively.

Pursuant to an amended and restated investment advisory agreement, the majority of the Company’s invested assets are managed by an affiliate. The investment management fees incurred were $23 million, $30 million and $23 million in 2023, 2022 and 2021, respectively.

23. SUBSEQUENT EVENTS

Management considers events or transactions that occur after the reporting date, but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosures. The Company has evaluated subsequent events through April 18, 2024, the date the financial statements were issued.

On March 11, 2024, Corebridge entered into an Amendment and Waiver of Consent and Voting Rights (the “Amendment and Waiver”) with AIG and certain affiliates of Argon and Blackstone that (i) amends the Stockholders Agreement, dated as of November 2, 2021, between Corebridge, AIG and Argon such that Argon shall have no right to consent to any repurchase of shares of common stock of Corebridge, par value $0.01 per share (“Corebridge Common Stock”) if such repurchase would result in Argon owning, of record, more than 9.9% of the then-outstanding Corebridge Common

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

Stock, provided that, no such repurchase will be permitted if it would result in Argon owning, of record, more than 14.9% of the then-outstanding Corebridge Common Stock and (ii) waives the right of Argon, Blackstone and certain of their affiliates to vote or act by written consent with respect to any shares of Corebridge Common Stock owned by them from time to time.

The Company paid an ordinary cash dividend of $320 million to AGC Life on March 25, 2024.

Supplemental Information

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA


(in millions)	December 31, 2023
Investment income earned:
Government bonds	$	9
Other bonds (unaffiliated)		851
Bonds of affiliates		—
Preferred stocks (unaffiliated)		—
Common stocks (unaffiliated)		1
Common stocks of affiliates		—
Cash and short-term investments		21
Mortgage loans		200
Real estate		—
Contract loans		8
Other invested assets		99
Derivative instruments		(36)
Miscellaneous income		—
Gross investment income	$	1,153

Real estate owned - book value less encumbrances	$	—

Mortgage loans - book value:
Commercial mortgages	$	3,155
Residential mortgages		641
Mezzanine loans		129
Affiliated residential mortgages		—
Total mortgage loans	$	3,925

Mortgage loans by standing - book value:
Good standing	$	3,864
Good standing with restructured terms		61
Interest overdue more than 90 days, not in foreclosure		—
Foreclosure in process		—
Total mortgage loans	$	3,925

Partnerships - statement value	$	1,632

Bonds and stocks of parents, subsidiaries and affiliates - statement value:
Bonds	$	—
Common stocks		—

Bonds, short-term and cash equivalent bond investments by class and maturity:
Bonds, short-term and cash equivalent bond investments by maturity - statement value:
Due within one year or less	$	1,044
Over 1 year through 5 years		5,413
Over 5 years through 10 years		4,294
Over 10 years through 20 years		3,368
Over 20 years		5,271
Total maturity	$	19,390

Bonds, short-term and cash equivalent bond investments by class - statement value:
Class 1	$	11,781
Class 2		6,691
Class 3		527
Class 4		309
Class 5		73
Class 6		9
Total by class	$	19,390

Total bonds, short-term and cash equivalent bond investments publicly traded	$	10,020
Total bonds, short-term and cash equivalent bond investments privately traded		9,370

Preferred stocks - statement value	$	45
Common stocks - market value		18
Short-term investments - book value		—
Cash equivalents - book value		247
Options, caps and floors owned - statement value		164
Collar, swap and forward agreements open - statement value		(121)
Futures contracts open - current value		1
Cash on deposit		(20)

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA (Continued)


(in millions)	December 31, 2023
Life insurance in-force:
Ordinary	$	74,081
Credit		14
Group		809

Amount of accidental death insurance in-force under ordinary policies		203

Life insurance policies with disability provisions in-force:
Ordinary		4,276
Group life		22

Supplementary contracts in-force:
Ordinary - not involving life contingencies:
Amount on deposit		65
Income payable		23

Ordinary - involving life contingencies:
Amount on deposit		34
Income payable		21

Group - not involving life contingencies:
Amount on deposit		3
Income Payable		3

Annuities:
Ordinary:
Immediate - amount of income payable	$	224
Deferred, fully paid - account balance		9,062
Deferred, not fully paid - account balance		7,009

Group:
Amount of income payable		155
Fully paid - account balance		59
Not fully paid - account balance		407

Accident and health insurance - premiums in-force:
Other	$	1
Group		18
Credit		—

Deposit funds and dividend accumulations:
Deposit funds - account balance	$	243
Dividend accumulations - account balance		16

Claim payments in 2022
Group accident & health:
2023	$	9
2022		7
2021		10
2020		20
2019		15
Prior		624

Other accident & health:
2023		(1	)
2022		—
2021		—
2020		—
2019		1
Prior		1

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

SUPPLEMENTAL INVESTMENT RISKS INTERROGATORIES

DECEMBER 31, 2023

(in millions)

1. The Company’s total admitted assets as of December 31, 2023 are $31.8 billion.

The Company’s total admitted assets, excluding separate accounts, as of December 31, 2023 are $26.0 billion.

2. Following are the 10 largest exposures to a single issuer/borrower/investment, by investment category, excluding: (i) U.S. Government, U.S. Government agency securities and those U.S. Government money market funds listed in the Appendix to the IAO Practices and Procedures Manual as exempt, (ii) property occupied by the Company, and (iii) policy loans:


Issuer	Description of Exposure	Amount		Percentage of Total Admitted Assets
a. Senior Direct Lending Program LLC	Bonds	$	490		1.90	%
b. Amazon.com, Inc.	Bonds		158		0.60
c. KPMG LLP	Bonds		129		0.50
d. Bristol-Myers Squibb Company	Bonds		120		0.50
e. Comcast Corporation	Bonds		113		0.40
f. RTX Corporation	Bonds		109		0.40
g. UnitedHealth Group Incorporated	Bonds		107		0.40
h. Duke Energy Corporation	Bonds		103		0.40
i. EY Global Finance Inc.	Bonds		89		0.30
j. Ernst & Young LLP	Bonds		87		0.30

3. The Company’s total admitted assets held in bonds and preferred stocks, by NAIC rating, are:


Bonds and Short-Term Investments						Preferred Stocks
NAIC Rating	Amount		Percentage of Total Admitted Assets			NAIC Rating	Amount		Percentage of Total Admitted Assets
NAIC - 1	$	11,781		45.30	%	P/RP - 1	$	5		—	%

NAIC - 2		6,691		25.70		P/RP - 2		40		0.20

NAIC - 3		527		2.00		P/RP - 3		—		—

NAIC - 4		309		1.20		P/RP - 4		—		—

NAIC - 5		73		0.30		P/RP - 5		—		—

NAIC - 6		9		—		P/RP - 6		—		—

4. Assets held in foreign investments:


	Amount		Percentage of Total Admitted Assets
a. Total admitted assets held in foreign investments	$	4,685		18.00	%

b. Foreign currency denominated investments		1,567		6.00

c. Insurance liabilities denominated in that same foreign currency		—		—

5. Aggregate foreign investment exposure categorized by NAIC sovereign rating:


	Amount		Percentage of Total Admitted Assets
a. Countries rated NAIC - 1	$	4,095		15.80	%
b. Countries rated NAIC - 2		510		2.00
c. Countries rated NAIC - 3 or below		80		0.30

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

SUPPLEMENTAL INVESTMENT RISKS INTERROGATORIES (Continued)

DECEMBER 31, 2023

(in millions)

6. Two largest foreign investment exposures to a single country, categorized by the country’s NAIC sovereign rating:


	Amount		Percentage of Total Admitted Assets
a. Countries rated NAIC - 1
Country 1: Cayman Islands	$	728		2.80	%
Country 2: United Kingdom		689		2.70
b. Countries rated NAIC - 2
Country 1: Mexico		134		0.50
Country 2: Panama		111		0.40
c. Countries rated NAIC - 3 or below
Country 1: Colombia		17		0.10
Country 2: British Virgin Island		11		—
7. Aggregate unhedged foreign currency exposure:
	Amount		Percentage of Total Admitted Assets
Aggregate unhedged foreign currency exposure	$	1,567		6.00	%
8. Aggregate unhedged foreign currency exposure categorized by NAIC sovereign rating:
	Amount		Percentage of Total Admitted Assets
a. Countries rated NAIC - 1	$	1,567		6.00	%
b. Countries rated NAIC - 2		—		—
c. Countries rated NAIC - 3 or below		—		—
9. Two largest unhedged foreign currency exposures to a single country, categorized by the country’s NAIC sovereign rating:
	Amount		Percentage of Total Admitted Assets
a. Countries rated NAIC - 1
Country 1: United Kingdom	$	425		1.60	%
Country 2: Ireland		390		1.50
b. Countries rated NAIC - 2
Country 1:		—		—
Country 2:		—		—
c. Countries rated NAIC - 3 or below
Country 1:		—		—
Country 2:		—		—

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

SUPPLEMENTAL INVESTMENT RISKS INTERROGATORIES (Continued)

DECEMBER 31, 2023

(in millions)


10. Ten largest non-sovereign (i.e. non-governmental) foreign issues:

	NAIC Rating	Amount		Percentage of Total Admitted Assets
a. 5555233	MORTGAGE LOAN	$	86		0.30	%
b. TotalEnergies SE	NAIC 1 & 2 - Bonds		71		0.30
c. Granite DEBTCO 10 Limited	MORTGAGE LOAN		65		0.30
d. 5555221	MORTGAGE LOAN		64		0.20

e. Suzano S.A.	NAIC 2 - Bonds		59		0.20

f. 5555143	MORTGAGE LOAN		57		0.20
g. Granite DEBTCO 9 Limited	MORTGAGE LOAN		57		0.20

h. Silver (BREDS)	OTHER OIA		57		0.20
i. 5555229	MORTGAGE LOAN		55		0.20

j. 5555189	MORTGAGE LOAN		54		0.20

11. Assets held in Canadian investments are less than 2.5% of the reporting entity’s total admitted assets.

12. Assets held in investments with contractual sales restrictions are less than 2.5 percent of the Company’s total admitted assets.

13. The Company’s admitted assets held in the ten largest equity interests (including investments in the shares of mutual funds, preferred stocks, publicly traded equity securities, and other equity securities and excluding money market and bond mutual funds listed in the Appendix to the SVO Practices and Procedures Manual as exempt or Class 1) are:


	Amount		Percentage of Total Admitted Assets
a. Corebridge Real Estate Investors Inc.	$	264		1.00	%
b. Carlyle Group		214		0.80
c. American Securities Capital Partners L.P.		61		0.20
d. Silver (BREDS)		57		0.20
e. Marlin Equity Partners		43		0.20
f. MASS MUTUAL LIFE INS CO		42		0.20
g. The Spiral		41		0.20
h. Franklin BSP Capital Corporation		40		0.20
i. NORTHWESTERN MUTUAL LIFE		39		0.20
j. Platinum Equity LLC		36		0.10

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

SUPPLEMENTAL INVESTMENT RISKS INTERROGATORIES (Continued)

DECEMBER 31, 2023

(in millions)

14. Assets held in nonaffiliated, privately placed equities:


	Amount		Percentage of Total Admitted Assets

Aggregate statement value of investment held in nonaffiliated, privately placed equities:	$	425		1.60	%

Largest three investments held in nonaffiliated, privately placed equities:
a. Carlyle Alternative Opportunities Fund L.P.	$	65		0.30
b. Silver (BREDS)		57		0.20
c. The Spiral		41		0.20

Ten largest fund managers:


Fund Manager	Total Invested		Diversified		Non- diversified
a. Corebridge Real Estate Investors Inc.	$	264	$	—	$	264
b. Carlyle Group		214		214		—
c. American Securities Capital Partners L.P.		61		61		—
d. Silver (BREDS)		57		—		57
e. Marlin Equity Partners		43		43		—
f. MASS MUTUAL LIFE INS CO		42		42		—
g. The Spiral		41		—		41
h. Franklin BSP Capital Corporation		40		40		—
i. NORTHWESTERN MUTUAL LIFE		39		39		—

j. Platinum Equity LLC		36		36		—

15. Assets held in general partnership interests are less than 2.5 percent of the Company’s total admitted assets.

16. Mortgage loans reported in Schedule B, include the following ten largest aggregate mortgage interests. The aggregate mortgage interest represents the combined value of all mortgages secured by the same property or same group of properties:


	Amount		Percentage of Total Admitted Assets
a. COMMERCIAL MORTGAGE LOAN, Loan No. 5555233, ESP	$	86		0.30	%
b. COMMERCIAL MORTGAGE LOAN, Loan No. 8002615, HI		85		0.30
c. COMMERCIAL MORTGAGE LOAN, Loan No. 5555221, ESP		64		0.20
d. COMMERCIAL MORTGAGE LOAN, Loan No. 8002341, NY		63		0.20
e. COMMERCIAL MORTGAGE LOAN, Loan No. 8002157, NY		60		0.20
f. COMMERCIAL MORTGAGE LOAN, Loan No. 8002541, IN		58		0.20
g. COMMERCIAL MORTGAGE LOAN, Loan No. 5555143, GBR		57		0.20
h. COMMERCIAL MORTGAGE LOAN, Loan No. 5555229, FIN		55		0.20
i. COMMERCIAL MORTGAGE LOAN, Loan No. 5555189, NLD		54		0.20
j. COMMERCIAL MORTGAGE LOAN, Loan No. 8002508, CA		52		0.20

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

SUPPLEMENTAL INVESTMENT RISKS INTERROGATORIES (Continued)

DECEMBER 31, 2023

(in millions)

Amount and percentage of the reporting entity’s total admitted assets held in the following categories of mortgage loans:


	Amount		Percentage of Total Admitted Assets
a. Construction loans	$	243		0.90	%

b. Mortgage loans over 90 days past due		—		—

c. Mortgage loans in the process of foreclosure		—		—

d. Mortgage loans foreclosed		—		—

e. Restructured mortgage loans		61		0.20

17. Aggregate mortgage loans having the following loan-to-value ratios as determined from the most current appraisal as of the annual statement date:


	Residential					Commercial					Agricultural
Loan-to-Value	Amount		Percentage of Total Admitted Assets			Amount		Percentage of Total Admitted Assets			Amount		Percentage of Total Admitted Assets
a. above 95%	$	—		—	%	$	90		0.30	%	$	—		—	%

b. 91% to 95%		—		—			33		0.10			—		—

c. 81% to 90%		—		—			153		0.60			—		—

d. 71% to 80%		73		0.30			448		1.70			—		—

e. below 70%		569		2.20			2,511		9.70			—		—

18. Assets held in each of the five largest investments in one parcel or group of contiguous parcels of real estate reported in Schedule A are less than 2.5 percent of the Company’s total admitted assets.

19. Assets held in mezzanine real estate loans are less than 2.5 percent of the Company’s total admitted assets.

20. The Company’s total admitted assets subject to the following types of agreements as of the following dates:

Unaudited At End of Each Quarter

At Year-End

1st Quarter

2nd Quarter

3rd Quarter

Amount

Percentage of
Total Admitted
Assets

Amount

a. Securities lending (do not include assets held as collateral for such transactions)

—

b. Repurchase agreements

—

c. Reverse repurchase agreements

—

d. Dollar repurchase agreements

—

e. Dollar reverse repurchase agreements

—

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

SUPPLEMENTAL INVESTMENT RISKS INTERROGATORIES (Continued)

DECEMBER 31, 2023

(in millions)

21. The Company’s potential exposure to warrants not attached to other financial instruments, options, caps, and floors:

Owned

Written

Amount

Percentage
of Total
Admitted
Assets

Amount

Percentage
of Total
Admitted
Assets

a. Hedging

—

b. Income generation

—

c. Other

—

22. The Company’s potential exposure (defined as the amount determined in accordance with the NAIC Annual Statement Instructions) for collars, swaps, and forwards as of the following dates:


						Unaudited At End of Each Quarter
	At Year-End					1st Quarter		2nd Quarter		3rd Quarter
	Amount		Percentage of Total Admitted Assets			Amount		Amount		Amount
a. Hedging	$	114		0.40	%	$	141	$	141	$	142
b. Income generation		—		—			—		—		—
c. Replications		—		—			—		—		—
d. Other		—		—			—		—		—

23. The Company’s potential exposure (defined as the amount determined in accordance with the NAIC Annual Statement Instructions) for futures contracts as of the following dates:


						Unaudited At End of Each Quarter
	At Year-End					1st Quarter		2nd Quarter		3rd Quarter
	Amount		Percentage of Total Admitted Assets			Amount		Amount		Amount
a. Hedging	$	20		0.10	%	$	23	$	24	$	21
b. Income generation		—		—			—		—		—
c. Replications		—		—			—		—		—
d. Other		—		—			—		—		—

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

SUPPLEMENTAL SUMMARY INVESTMENT SCHEDULE

DECEMBER 31, 2023


(in millions)	Gross Investment Holdings						Admitted Assets as Reported in the Annual Statement
Investment Categories	Amount			Percentage			Amount			Securities Lending Reinvested Collateral Amount		Total Amount			Percentage
Bonds:
U.S. governments	$	301			1.2	%	$	301		$	—	$	301			1.2	%
All other governments		670			2.6			670			—		670			2.6
U.S. states, territories and possessions, etc. guaranteed		111			0.4			111			—		111			0.4
U.S. political subdivisions of states, territories, and possessions, guaranteed		42			0.2			42			—		42			0.2
U.S. special revenue and special assessment obligations, etc. non-guaranteed		967			3.8			967			—		967			3.8
Industrial and miscellaneous		17,034			66.9			17,034			—		17,034			66.9
Hybrid securities		22			0.1			22			—		22			0.1
Parent, subsidiaries and affiliates		—			—			—			—		—			—
SVO identified funds		—			—			—			—		—			—
Unaffiliated Bank loans		243			1.0			243			—		243			1.0
Total long-term bonds	$	19,390			76.1		$	19,390		$	—	$	19,390			76.1
Preferred stocks:
Industrial and miscellaneous (Unaffiliated)	$	45			0.2		$	45		$	—	$	45			0.2
Parent, subsidiaries and affiliates		—			—			—			—		—			—
Total preferred stocks	$	45			0.2		$	45		$	—	$	45			0.2
Common stocks:
Industrial and miscellaneous Publicly traded (Unaffiliated)	$	—			—		$	—		$	—	$	—			—
Industrial and miscellaneous Other (Unaffiliated)		18			0.1			18			—		18			0.1
Parent, subsidiaries and affiliates Publicly traded		—			—			—			—		—			—
Parent, subsidiaries and affiliates Other		—			—			—			—		—			—
Mutual funds		—			—			—			—		—			—
Total common stocks	$	18			0.1		$	18		$	—	$	18			0.1
Mortgage loans:
Farm mortgages	$	—			—		$	—		$	—	$	—			—
Residential mortgages		641			2.5			641		$	—		641			2.5
Commercial mortgages		3,155			12.4			3,155		$	—		3,155			12.4
Mezzanine real estate loans		129			0.5			129		$	—		129			0.5
Total valuation allowance		(49	)		(0.2	)		(49	)	$	—		(49	)		(0.2	)
Total mortgage loans	$	3,876			15.2		$	3,876		$	—	$	3,876			15.2
Real estate:
Properties occupied by company	$	—			—		$	—		$	—	$	—			—
Properties held for production of income		—			—			—			—		—			—
Properties held for sale		—			—			—			—		—			—
Total real estate	$	—			—		$	—		$	—	$	—			—
Cash, cash equivalents and short-term investments:
Cash	$	(20	)		(0.1	)	$	(20	)	$	—	$	(20	)		(0.1	)
Cash equivalents		247			1.0			247			—		247			1.0
Short-term investments		—			—			—			—		—			—
Total cash, cash equivalents and short-term investments	$	227			0.9		$	227		$	—	$	227			0.9
Contract loans	$	132			0.5		$	132		$	—	$	132			0.5
Derivatives		46			0.2			46			—		46			0.2
Other invested assets		1,648			6.5			1,632			—		1,632			6.4
Receivables for securities		37			0.2			37			—		37			0.2
Securities Lending		—			—			—			XXX		XXX			XXX
Other invested assets		63			0.3			63			—		63			0.3
Total invested assets	$	25,482			100.1	%	$	25,466		$	—	$	25,466			100.0	%

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

SUPPLEMENTAL SCHEDULE OF REINSURANCE DISCLOSURES

December 31, 2023

The following information regarding reinsurance contracts is presented to satisfy the disclosure requirements in SSAP No. 61R, Life, Deposit-Type and Accident and Health Reinsurance, which apply to reinsurance contracts entered into, renewed or amended on or after January 1, 1996.

Has the Company reinsured any risk with any other entity under a reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) that is subject to Appendix A-791, Life and Health Reinsurance Agreements, and includes a provision that limits the reinsurer’s assumption of significant risks identified in Appendix A-791?

Yes [ ] No [ X ]

If yes, indicate the number of reinsurance contracts to which such provisions apply: __________

If yes, indicate if deposit accounting was applied for all contracts subject to Appendix A-791 that limit significant risks.

Yes [ ] No [ ] N/A [ X ]

Has the Company reinsured any risk with any other entity under a reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) that is not subject to Appendix A-791, for which reinsurance accounting was applied and includes a provision that limits the reinsurer’s assumption of risk?

Yes [ ] No [ X ]

If yes, indicate the number of reinsurance contracts to which such provisions apply: __________

If yes, indicate whether the reinsurance credit was reduced for the risk-limiting features.

Yes [ ] No [ ] N/A [ X ]

3.	Does the Company have any reinsurance contracts (other than reinsurance contracts with a federal or state facility) that contain one or more of the following features which may result in delays in payment in form or in fact:

(a)

Provisions that permit the reporting of losses to be made less frequently than quarterly;

(b)

Provisions that permit settlements to be made less frequently than quarterly;

(c)

Provisions that permit payments due from the reinsurer to not be made in cash within ninety (90) days of the settlement date (unless there is no activity during the period); or

(d)

The existence of payment schedules, accumulating retentions from multiple years, or any features inherently designed to delay timing of the reimbursement to the ceding entity.

Yes [ ] No [ X ]

4.	Has the Company reflected reinsurance accounting credit for any contracts that are not subject to Appendix A-791 and not yearly renewable term reinsurance, which meet the risk transfer requirements of SSAP No. 61R?

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

SUPPLEMENTAL SCHEDULE OF REINSURANCE DISCLOSURES

December 31, 2023

5.	Has the Company ceded any risk, which is not subject to Appendix A-791 and not yearly renewable term reinsurance, under any reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) during the period covered by the financial statements, and either:

(a) Accounted for that contract as reinsurance under statutory accounting principles (SAP) and as a deposit under generally accepted accounting principles (GAAP); or

Yes [ ] No [ X ] N/A [ ]

(b) Accounted for that contract as reinsurance under GAAP and as a deposit under SAP?

Yes [ ] No [ X ] N/A [ ]

If the answer to item (a) or item (b) is yes, include relevant information regarding GAAP to SAP differences from the accounting policy footnote to the audited statutory-basis financial statements to explain why the contract(s) is treated differently for GAAP and SAP below: