SENTRY LIFE INSURANCE COMPANY
Sentry Variable Account II
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2023

Assets:
                  
                   
Investments at fair value:
                  
   
Investments at Fair Value
    
Accrued Dividends
    
Total Assets and Total Net Assets
  
Janus Henderson Series - Institutional Shares:
                  
Research Portfolio, 20,399 shares (cost $ 716,821)
  
$
920,999
     $      
$
920,999
  
Enterprise Portfolio, 164,058 shares (cost $ 11,183,445)
    
12,553,683
              
12,553,683
  
Forty Portfolio, 34,017 shares (cost $ 1,334,004)
    
1,610,716
              
1,610,716
  
Global Research Portfolio, 5,328 shares (cost $ 238,425)
    
325,548
              
325,548
  
Balanced Portfolio, 21,326 shares (cost $ 726,559)
    
965,658
              
965,658
  
                         
T. Rowe Price Fixed Income Series, Inc.:
                        
Limited Term Bond Portfolio, 126,832 shares (cost $ 615,739)
    
591,036
              
591,036
  
                         
T. Rowe Price Equity Series, Inc.:
                        
Equity Income Portfolio, 39,608 shares (cost $ 1,080,801)
    
1,099,506
              
1,099,506
  
Moderate Allocation Portfolio, 128,566 shares (cost $ 2,585,287)
    
2,573,898
              
2,573,898
  
Mid-Cap Growth Portfolio, 13,209 shares (cost $ 377,705)
    
384,509
              
384,509
  
                         
T. Rowe Price International Series, Inc.:
                        
International Stock Portfolio, 7,461 shares (cost $ 111,612)
    
111,994
              
111,994
  
                         
Vanguard Variable Insurance Fund:
                        
Balanced Portfolio, 23,610 shares (cost $ 526,719)
    
549,882
              
549,882
  
Equity Index Portfolio, 7,870 shares (cost $ 334,197)
    
479,219
              
479,219
  
High Yield Bond Portfolio, 9,655 shares (cost $ 72,228)
    
71,156
              
71,156
  
     Small Company Growth Portfolio, 22,452 shares (cost $ 432,555)
    
395,372
              
395,372
  
Mid-Cap Index Portfolio, 17,021 shares (cost $ 361,265)
    
407,321
              
407,321
  
REIT Index Portfolio, 23,795 shares (cost $ 301,470)
    
283,637
              
283,637
  
VVIF - Money Market, 589,021 shares (cost $ 589,021)
    
589,021
      
85
      
589,106
  


See accompanying notes to financial statements
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Account II
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 2023

                   
                   
   
Janus Henderson
    
Janus Henderson
    
Janus Henderson
  
   
Research
    
Enterprise
    
Forty
  
                   
Investment income:
                  
  Dividends
  
$
1,189
    
$
19,040
    
$
2,773
  
                         
Expenses:
                        
  Mortality and expense risk charges
    
9,896
      
146,116
      
17,355
  
                         
Net investment income (loss)
    
(8,707
)
    
(127,076
)
    
(14,582
)
                         
Realized gains (losses) on investments:
                        
  Net realized investment gain (loss)
    
14,777
      
614,024
      
15,745
  
                         
  Capital gain distributions received
    
-
      
830,336
      
-
  
                         
  Net realized gain (loss) on investments and
                        
    capital gain distributions, net
    
14,777
      
1,444,360
      
15,745
  
                         
  Net change in unrealized appreciation
                        
   (depreciation) on investments
    
276,316
      
561,765
      
462,213
  
                         
Net increase (decrease) in net assets from operations
  
$
282,386
    
$
1,879,049
    
$
463,376
  
                         
                         
                         
                         
                         
                         
   
Janus Henderson
    
Janus Henderson
          
   
Gobal Research
    
Balanced
          
                         
Investment income:
                        
  Dividends
  
$
2,897
    
$
19,501
          
                         
Expenses:
                        
  Mortality and expense risk charges
    
3,804
      
11,167
          
                         
Net investment income (loss)
    
(907
)
    
8,334
          
                         
Realized gains (losses) on investments:
                        
  Net realized investment gain (loss)
    
23,546
      
28,150
          
                         
  Capital gain distributions received
    
9,055
      
-
          
                         
  Net realized gain (loss) on investments and
                        
    capital gain distributions, net
    
32,601
      
28,150
          
                         
  Net change in unrealized appreciation
                        
   (depreciation) on investments
    
39,438
      
86,498
          
                         
Net increase (decrease) in net assets from operations
  
$
71,132
    
$
122,982
          

See accompanying notes to financial statements
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Account II
STATEMENTS OF OPERATIONS (continued)
For the Year Ended December 31, 2023

   
T. Rowe Price
    
T. Rowe Price
    
T. Rowe Price
  
   
Limited Term Bond
    
Equity Income
    
Moderate Allocation
  
                   
Investment income:
                  
  Dividends
  
$
19,989
    
$
22,568
    
$
58,287
  
                         
Expenses:
                        
  Mortality and expense risk charges
    
7,245
      
12,973
      
30,606
  
                         
Net investment income (loss)
    
12,744
      
9,595
      
27,681
  
                         
Realized gains (losses) on investments:
                        
  Net realized investment gain (loss)
    
(10,143
)
    
15,566
      
(55,128
)
                         
  Capital gain distributions received
    
-
      
45,153
      
7,057
  
                         
  Net realized gain (loss) on investments and
                        
    capital gain distributions, net
    
(10,143
)
    
60,719
      
(48,071
)
                         
  Net change in unrealized appreciation
                        
   (depreciation) on investments
    
19,573
      
18,547
      
359,944
  
                         
Net increase (decrease) in net assets from operations
  
$
22,174
    
$
88,861
    
$
339,554
  
                         
                         
                         
                         
                         
   
T. Rowe Price
    
T. Rowe Price
          
   
Mid-Cap Growth
    
International Stock
          
                         
Investment income:
                        
  Dividends
  
$
-
    
$
1,112
          
                         
Expenses:
                        
  Mortality and expense risk charges
    
5,338
      
1,347
          
                         
Net investment income (loss)
    
(5,338
)
    
(235
)
        
                         
Realized gains (losses) on investments:
                        
  Net realized investment gain (loss)
    
2,353
      
(812
)
        
                         
  Capital gain distributions received
    
23,022
      
-
          
                         
  Net realized gain (loss) on investments and
                        
    capital gain distributions, net
    
25,375
      
(812
)
        
                         
  Net change in unrealized appreciation
                        
   (depreciation) on investments
    
48,006
      
16,713
          
                         
Net increase (decrease) in net assets from operations
  
$
68,043
    
$
15,666
          

See accompanying notes to financial statements
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Account II
STATEMENTS OF OPERATIONS (continued)
For the Year Ended December 31, 2023

   
Vanguard
    
Vanguard
    
Vanguard
  
   
Balanced
    
Equity Index
    
High Yield Bond
  
                   
Investment income:  Dividends
  
$
10,575
    
$
7,178
    
$
3,556
  
                         
Expenses:  Mortality and expense risk charges
    
6,214
      
5,900
      
837
  
                         
Net investment income (loss)
    
4,361
      
1,278
      
2,719
  
                         
Realized gains (losses) on investments:
                        
  Net realized investment gain (loss)
    
205
      
39,900
      
(1,024
)
                         
  Capital gain distributions received
    
20,494
      
15,898
      
-
  
                         
  Net realized gain (loss) on investments and
                        
    capital gain distributions, net
    
20,699
      
55,798
      
(1,024
)
                         
  Net change in unrealized appreciation
                        
   (depreciation) on investments
    
38,950
      
48,532
      
5,183
  
                         
Net increase (decrease) in net assets from operations
  
$
64,010
    
$
105,608
    
$
6,878
  
                         
                         
   
Vanguard
    
Vanguard
    
Vanguard
  
   
Small Company Growth
    
Mid-Cap Index
    
REIT Index
  
                         
Investment income:  Dividends
  
$
1,606
    
$
5,708
    
$
6,656
  
                         

                       
Expenses:  Mortality and expense risk charges
    
4,622
      
4,660
      
3,173
  
                         
Net investment income (loss)
    
(3,016
)
    
1,048
      
3,483
  
                         
Realized gains (losses) on investments:
                        
  Net realized investment gain (loss)
    
(3,899
)
    
631
      
(6,380
)
                         
  Capital gain distributions received
    
-
      
7,163
      
12,557
  
                         
  Net realized gain (loss) on investments and
                        
    capital gain distributions, net
    
(3,899
)
    
7,794
      
6,177
  
                         
  Net change in unrealized appreciation
                        
   (depreciation) on investments
    
72,701
      
44,299
      
17,729
  
                         
Net increase (decrease) in net assets from operations
  
$
65,786
    
$
53,141
    
$
27,389
  
                         




                 
   
Vanguard
                  
   
Money Market
                  
                         
Investment income:  Dividends
  
$
29,513
                  
                         
Expenses:  Mortality and expense risk charges
    
7,176
                  
                         
Net investment income (loss)
    
22,337
                  
                         
Realized gains (losses) on investments:
                        
  Net realized investment gain (loss)
    
-
                  
                         
  Capital gain distributions received
    
7
                  
                         
  Net realized gain (loss) on investments and
                        
    capital gain distributions, net
    
7
                  
                         
  Net change in unrealized appreciation
                        
   (depreciation) on investments
    
-
                  
                         
Net increase (decrease) in net assets from operations
  
$
22,344
                  

See accompanying notes to financial statements
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Account II
STATEMENTS OF CHANGES IN NET ASSETS
For the Year Ended December 31

   
Janus Henderson
Research
    
Janus Henderson
Enterprise
    
Janus Henderson
Forty
  
             
   
2023
    
2022
    
2023
    
2022
    
2023
    
2022
  
                                     
Increase (decrease) in net assets from operations:
                                    
  Net investment income (loss)
  
$
(8,707
)
  
$
(9,309
)
  
$
(127,076
)
  
$
(127,228
)
  
$
(14,582
)
  
$
(15,744
)
                                                 
  Realized gains (losses) on investments
    
14,777
      
193,399
      
1,444,360
      
2,888,947
      
15,745
      
286,916
  
                                                 
  Unrealized appreciation (depreciation), net
    
276,316
      
(547,574
)
    
561,765
      
(5,349,421
)
    
462,213
      
(1,007,020
)
                                                 
Net increase (decrease) in net assets from operations
    
282,386
      
(363,484
)
    
1,879,049
      
(2,587,702
)
    
463,376
      
(735,848
)
                                                 
Contract transactions:
                                                
  Purchase payments
    
2,337
      
3,224
      
34,025
      
39,236
      
4,670
      
7,219
  
                                                 
  Transfers between subaccounts, net
    
25
      
401
      
(768
)
    
(103,128
)
    
2,315
      
(59,911
)
                                                 
  Withdrawals
    
(60,250
)
    
(166,598
)
    
(1,226,009
)
    
(986,353
)
    
(101,133
)
    
(237,828
)
                                                 
  Contract maintenance fees
    
(806
)
    
(955
)
    
(7,505
)
    
(8,424
)
    
(940
)
    
(1,100
)
                                                 
Net increase (decrease) in net assets
                                                
  derived from contract transactions
    
(58,694
)
    
(163,928
)
    
(1,200,257
)
    
(1,058,669
)
    
(95,088
)
    
(291,620
)
                                                 
Total increase (decrease) in net assets
    
223,692
      
(527,412
)
    
678,792
      
(3,646,371
)
    
368,288
      
(1,027,468
)
                                                 
Net assets at beginning of year
    
697,307
      
1,224,719
      
11,874,891
      
15,521,262
      
1,242,428
      
2,269,896
  
                                                 
Net assets at end of year
  
$
920,999
    
$
697,307
    
$
12,553,683
    
$
11,874,891
    
$
1,610,716
    
$
1,242,428
  
                                                 
                                                 
                                                 
   
 Janus Henderson
Global Research
    
Janus Henderson
Balanced
                  
                         
     
2023
      
2022
      
2023
      
2022
                  
                                                 
Increase (decrease) in net assets from operations:
                                                
  Net investment income (loss)
  
$
(907
)
  
$
(611
)
  
$
8,334
    
$
121
                  
                                                 
  Realized gains (losses) on investments
    
32,601
      
85,558
      
28,150
      
111,954
                  
                                                 
  Unrealized appreciation (depreciation), net
    
39,438
      
(166,732
)
    
86,498
      
(326,511
)
                
                                                 
Net increase (decrease) in net assets from operations
    
71,132
      
(81,785
)
    
122,982
      
(214,436
)
                
                                                 
Contract transactions:
                                                
  Purchase payments
    
3,146
      
814
      
4,255
      
4,491
                  
                                                 
  Transfers between subaccounts, net
    
(179
)
    
(42,745
)
    
(1,820
)
    
(37,714
)
                
                                                 
  Withdrawals
    
(45,773
)
    
(34,193
)
    
(62,006
)
    
(152,810
)
                
                                                 
  Contract maintenance fees
    
(302
)
    
(306
)
    
(1,090
)
    
(1,269
)
                
                                                 
Net increase (decrease) in net assets
                                                
  derived from contract transactions
    
(43,108
)
    
(76,430
)
    
(60,661
)
    
(187,302
)
                
                                                 
Total increase (decrease) in net assets
    
28,024
      
(158,215
)
    
62,321
      
(401,738
)
                
                                                 
Net assets at beginning of year
    
297,524
      
455,739
      
903,337
      
1,305,075
                  
                                                 
Net assets at end of year
  
$
325,548
    
$
297,524
    
$
965,658
    
$
903,337
                  

See accompanying notes to financial statements
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Account II
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the Year Ended December 31

                                     
                                     
   
T. Rowe Price
Limited Term Bond
    
T. Rowe Price
Equity Income
    
T. Rowe Price
Moderate Allocation
  
             
   
2023
    
2022
    
2023
    
2022
    
2023
    
2022
  
                                     
Increase (decrease) in net assets from operations:
                                    
  Net investment income (loss)
  
$
12,744
    
$
5,301
    
$
9,595
    
$
8,552
    
$
27,681
    
$
10,604
  
                                                 
  Realized gains (losses) on investments
    
(10,143
)
    
(5,746
)
    
60,719
      
114,095
      
(48,071
)
    
26,534
  
                                                 
  Unrealized appreciation (depreciation), net
    
19,573
      
(41,940
)
    
18,547
      
(179,549
)
    
359,944
      
(729,377
)
                                                 
Net increase (decrease) in net assets from operations
    
22,174
      
(42,385
)
    
88,861
      
(56,902
)
    
339,554
      
(692,239
)
                                                 
Contract transactions:
                                                
  Purchase payments
    
5,527
      
6,783
      
319
      
2,280
      
9,220
      
6,875
  
                                                 
  Transfers between subaccounts, net
    
(1,487
)
    
459
      
(3,474
)
    
(35,081
)
    
140
      
(56,792
)
                                                 
  Withdrawals
    
(113,738
)
    
(61,319
)
    
(214,828
)
    
(37,532
)
    
(475,938
)
    
(194,762
)
                                                 
  Contract maintenance fees
    
(739
)
    
(808
)
    
(1,038
)
    
(1,067
)
    
(2,142
)
    
(2,302
)
                                                 
Net increase (decrease) in net assets
                                                
  derived from contract transactions
    
(110,437
)
    
(54,885
)
    
(219,021
)
    
(71,400
)
    
(468,720
)
    
(246,981
)
                                                 
Total increase (decrease) in net assets
    
(88,263
)
    
(97,270
)
    
(130,160
)
    
(128,302
)
    
(129,166
)
    
(939,220
)
                                                 
Net assets at beginning of year
    
679,299
      
776,569
      
1,229,666
      
1,357,968
      
2,703,064
      
3,642,284
  
                                                 
Net assets at end of year
  
$
591,036
    
$
679,299
    
$
1,099,506
    
$
1,229,666
    
$
2,573,898
    
$
2,703,064
  
                                                 
                                                 
                                                 
   
T. Rowe Price
Mid-Cap Growth
    
T. Rowe Price
International Stock
                  
                         
     
2023
      
2022
      
2023
      
2022
                  
                                                 
Increase (decrease) in net assets from operations:
                                                
  Net investment income (loss)
  
$
(5,338
)
  
$
(6,141
)
  
$
(235
)
  
$
(446
)
                
                                                 
  Realized gains (losses) on investments
    
25,375
      
17,105
      
(812
)
    
2,215
                  
                                                 
  Unrealized appreciation (depreciation), net
    
48,006
      
(166,053
)
    
16,713
      
(23,255
)
                
                                                 
Net increase (decrease) in net assets from operations
    
68,043
      
(155,089
)
    
15,666
      
(21,486
)
                
                                                 
Contract transactions:
                                                
  Purchase payments
    
2,791
      
5,843
      
1,080
      
2,290
                  
                                                 
  Transfers between subaccounts, net
    
(428
)
    
2,267
      
(737
)
    
2,917
                  
                                                 
  Withdrawals
    
(122,873
)
    
(70,634
)
    
(11,056
)
    
(1,104
)
                
                                                 
  Contract maintenance fees
    
(466
)
    
(451
)
    
(167
)
    
(157
)
                
                                                 
Net increase (decrease) in net assets
                                                
  derived from contract transactions
    
(120,976
)
    
(62,975
)
    
(10,880
)
    
3,946
                  
                                                 
Total increase (decrease) in net assets
    
(52,933
)
    
(218,064
)
    
4,786
      
(17,540
)
                
                                                 
Net assets at beginning of year
    
437,442
      
655,506
      
107,208
      
124,748
                  
                                                 
Net assets at end of year
  
$
384,509
    
$
437,442
    
$
111,994
    
$
107,208
                  

See accompanying notes to financial statements
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Account II
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the Year Ended December 31
 
   
Vanguard
Balanced
    
Vanguard
Equity Index
    
Vanguard
High Yield Bond
  
             
   
2023
    
2022
    
2023
    
2022
    
2023
    
2022
  
                                     
Increase (decrease) in net assets from operations:
                                    
  Net investment income (loss)
  
$
4,361
    
$
3,864
    
$
1,278
    
$
816
    
$
2,719
    
$
2,823
  
                                                 
  Realized gains (losses) on investments
    
20,699
      
69,846
      
55,798
      
35,604
      
(1,024
)
    
(568
)
                                                 
  Unrealized appreciation (depreciation), net
    
38,950
      
(175,526
)
    
48,532
      
(150,119
)
    
5,183
      
(10,719
)
                                                 
Net increase (decrease) in net assets from operations
    
64,010
      
(101,816
)
    
105,608
      
(113,699
)
    
6,878
      
(8,464
)
                                                 
Contract transactions:
                                                
  Purchase payments
    
10,941
      
1,360
      
708
      
863
      
1,915
      
1,520
  
                                                 
  Transfers between subaccounts, net
    
(461
)
    
(2,187
)
    
(4,902
)
    
(5,385
)
    
(757
)
    
1,152
  
                                                 
  Withdrawals
    
(20,890
)
    
(138,790
)
    
(83,795
)
    
(18,210
)
    
(6,847
)
    
(3,115
)
                                                 
  Contract maintenance fees
    
(344
)
    
(377
)
    
(335
)
    
(297
)
    
(90
)
    
(92
)
                                                 
Net increase (decrease) in net assets
                                                
  derived from contract transactions
    
(10,754
)
    
(139,994
)
    
(88,324
)
    
(23,029
)
    
(5,779
)
    
(535
)
                                                 
Total increase (decrease) in net assets
    
53,256
      
(241,810
)
    
17,284
      
(136,728
)
    
1,099
      
(8,999
)
                                                 
Net assets at beginning of year
    
496,626
      
738,436
      
461,935
      
598,663
      
70,057
      
79,056
  
                                                 
Net assets at end of year
  
$
549,882
    
$
496,626
    
$
479,219
    
$
461,935
    
$
71,156
    
$
70,057
  
                                                 
                                                 
   
Vanguard
Small Company Growth
    
Vanguard
Mid-Cap Index
    
Vanguard
REIT Index
  
             
     
2023
      
2022
      
2023
      
2022
      
2023
      
2022
  
                                                 
Increase (decrease) in net assets from operations:
                                                
  Net investment income (loss)
  
$
(3,016
)
  
$
(3,667
)
  
$
1,048
    
$
(163
)
  
$
3,483
    
$
1,710
  
                                                 
  Realized gains (losses) on investments
    
(3,899
)
    
105,568
      
7,794
      
46,565
      
6,177
      
11,093
  
                                                 
  Unrealized appreciation (depreciation), net
    
72,701
      
(231,500
)
    
44,299
      
(147,740
)
    
17,729
      
(113,715
)
                                                 
Net increase (decrease) in net assets from operations
    
65,786
      
(129,599
)
    
53,141
      
(101,338
)
    
27,389
      
(100,912
)
                                                 
Contract transactions:
                                                
  Purchase payments
    
3,551
      
1,745
      
2,650
      
850
      
358
      
3,380
  
                                                 
  Transfers between subaccounts, net
    
2,567
      
(3,786
)
    
(865
)
    
(196
)
    
5,702
      
29,993
  
                                                 
  Withdrawals
    
(38,615
)
    
(6,909
)
    
(29,310
)
    
(29,910
)
    
(21,118
)
    
(5,366
)
                                                 
  Contract maintenance fees
    
(268
)
    
(257
)
    
(164
)
    
(201
)
    
(228
)
    
(231
)
                                                 
Net increase (decrease) in net assets
                                                
  derived from contract transactions
    
(32,765
)
    
(9,207
)
    
(27,689
)
    
(29,457
)
    
(15,286
)
    
27,776
  
                                                 
Total increase (decrease) in net assets
    
33,021
      
(138,806
)
    
25,452
      
(130,795
)
    
12,103
      
(73,136
)
                                                 
Net assets at beginning of year
    
362,351
      
501,157
      
381,869
      
512,664
      
271,534
      
344,670
  
                                                 
Net assets at end of year
  
$
395,372
    
$
362,351
    
$
407,321
    
$
381,869
    
$
283,637
    
$
271,534
  

See accompanying notes to financial statements
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Account II
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the Year Ended December 31

   
Vanguard
Money Market
  
     
   
2023
      
2022 *

               
Increase (decrease) in net assets from operations:
              
  Net investment income (loss)
  
$
22,337
    
$
4,555
  
                 
  Realized gains (losses) on investments
    
7
      
1
  
                 
  Unrealized appreciation (depreciation), net
    
-
      
-
  
                 
Net increase (decrease) in net assets from operations
    
22,344
      
4,556
  
                 
Contract transactions:
                
  Purchase payments
    
3,925
      
2,200
  
                 
  Transfers between subaccounts, net
    
5,131
      
756,548
  
                 
  Withdrawals
    
(58,935
)
    
(145,917
)
                 
  Contract maintenance fees
    
(448
)
    
(298
)
                 
Net increase (decrease) in net assets
                
  derived from contract transactions
    
(50,327
)
    
612,533
  
                 
Total increase (decrease) in net assets
    
(27,983
)
    
617,089
  
                 
Net assets at beginning of year
    
617,089
      
-
  
                 
Net assets at end of year
  
$
589,106
    
$
617,089
  

* Vanguard Money Market's shares became available for investment on February 2, 2022 (inception). The 2022 Statement of Changes in Net Assets is from February 2, 2022 (inception) through December 31, 2022.

See accompanying notes to financial statements
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Account II
NOTES TO FINANCIAL STATEMENTS
1. Organization
The Sentry Variable Account II (the Variable Account) is a segregated investment account of Sentry Life Insurance Company (the Company), which is a stock company 100% owned by Sentry Insurance Company (SIC), formerly Sentry Insurance a Mutual Company (SIAMCO), and is registered with the Securities and Exchange Commission (SEC) as a unit investment trust pursuant to the provisions of the Investment Company Act of 1940. The Variable Account is an accounting entity wherein all segregated account transactions are reflected.

Effective January 1, 2021 (the effective date), SIAMCO reorganized its corporate structure (the reorganization). On the effective date and as part of the reorganization, SIAMCO converted to SIC, a stock insurer. SIC is 100% owned by Sentry Holdings, Inc., an intermediate holding company, which is 100% owned by Sentry Mutual Holding Company. The reorganization did not have a material impact on the Company or the Variable Account's financial statements.

The Variable Account was established by the Company on August 2, 1983 in support of variable annuity contracts, and commenced operations on May 3, 1984. The Company discontinued new sales of variable annuity contracts on December 1, 2004. Management of the Company has determined that there is no justification for substantial doubt regarding the Variable Account's ability to continue as a going concern.
The assets of each subaccount of the Variable Account are invested in shares of corresponding portfolios of Janus Henderson Series - Institutional Shares, T. Rowe Price Fixed Income Series, Inc., T. Rowe Price Equity Series, Inc., T. Rowe Price International Series, Inc., and Vanguard Variable Insurance Fund (collectively, the Funds) at each portfolio's net asset value (NAV) in accordance with the selection made by contract owners.

The Funds are diversified open-end investment management companies registered under the Investment Company Act of 1940. A copy of the Funds' annual reports is included in the Variable Account's Annual Report.
The Variable Account meets the definition of an investment company under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946 and is following the accounting and reporting guidance under that Topic.

During 2022, a new fund offering was provided to policyholders, Vanguard Money Market Portfolio. Since this subaccount has an inception date in 2022, the financial statements are as of December 31, 2022 and for the period from inception date of February 2, 2022 to December 31, 2022.

2. Significant Accounting Policies
The preparation of financial statements in conformity with U.S. generally accepted accounting principles may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Valuation of Investments
Investments in shares of each of the Funds are valued on the closing net asset value per share at December 31, 2023. The Funds value their investment securities at fair value.

Securities Transactions and Investment Income
Transactions in shares of the Funds are recorded on the trade date if received by 3:00 p.m. central standard time (the date the order to buy and sell is executed). Dividend income is recorded on the ex-dividend date. The cost of Fund shares sold and the corresponding investment gains and losses are determined on a specific identification basis.

Federal Income Taxes
The Company is taxed as a life insurance company under the provisions of the Internal Revenue Code. The operations of the Variable Account are part of the total operations of the Company and are not taxed as a separate entity.

Under Federal income tax law, net investment income and net realized investment gains of the Variable Account which are applied to increase net assets are not taxed.

SENTRY LIFE INSURANCE COMPANY
Sentry Variable Account II
NOTES TO FINANCIAL STATEMENTS

2. Significant Accounting Policies (continued)
Subsequent Events
In connection with the preparation of the financial statements, the Company evaluated subsequent events after the financial statement date of December 31, 2023 through February 23, 2024, the date the financial statements were issued. No significant subsequent events were identified.

3. Purchases and Sales of Securities

In 2023, purchases and proceeds from sale of investments in various subaccounts for the year ended December 31, 2023 are as follows:

         
Proceeds
  
   
Purchases
    
on Sales
  
Janus Henderson Research Portfolio
  
$
4,362
    
$
71,764
  
Janus Henderson Enterprise Portfolio
    
883,835
      
1,380,831
  
Janus Henderson Forty Portfolio
    
9,922
      
119,591
  
Janus Henderson Global Research Portfolio
    
15,173
      
50,133
  
Janus Henderson Balanced Portfolio
    
25,042
      
77,369
  
T. Rowe Price Limited Term Bond Portfolio
    
26,462
      
124,155
  
T. Rowe Price Equity Income Portfolio
    
68,473
      
232,747
  
T. Rowe Price Moderate Allocation Portfolio
    
75,985
      
509,966
  
T. Rowe Price Mid-Cap Growth Portfolio
    
26,401
      
129,693
  
T. Rowe Price International Stock Portfolio
    
2,377
      
13,491
  
Vanguard Balanced Portfolio
    
43,820
      
29,719
  
Vanguard Equity Index Portfolio
    
24,214
      
95,362
  
Vanguard High Yield Bond Portfolio
    
6,206
      
9,266
  
Vanguard Small Company Growth Portfolio
    
8,603
      
44,383
  
Vanguard Mid-Cap Index Portfolio
    
15,599
      
35,077
  
Vanguard REIT Index Portfolio
    
25,273
      
24,519
  
Vanguard Money Market Portfolio
    
38,632
      
66,559
  
    Total
  
$
1,300,379
    
$
3,014,625
  


In 2022, purchases and proceeds from sale of investments in various subaccounts for the year ended December 31, 2022 are as follows:

         
Proceeds
  
   
Purchases
    
on Sales
  
Janus Henderson Research Portfolio
  
$
165,501
    
$
178,390
  
Janus Henderson Enterprise Portfolio
    
2,204,496
      
1,315,302
  
Janus Henderson Forty Portfolio
    
249,638
      
318,581
  
Janus Henderson Global Research Portfolio
    
39,910
      
81,595
  
Janus Henderson Balanced Portfolio
    
57,840
      
212,004
  
T. Rowe Price Limited Term Bond Portfolio
    
63,923
      
112,425
  
T. Rowe Price Equity Income Portfolio
    
134,872
      
133,582
  
T. Rowe Price Moderate Allocation Portfolio
    
110,478
      
290,887
  
T. Rowe Price Mid-Cap Growth Portfolio
    
21,765
      
77,225
  
T. Rowe Price International Stock Portfolio
    
9,284
      
3,167
  
Vanguard Balanced Portfolio
    
64,291
      
148,245
  
Vanguard Equity Index Portfolio
    
30,681
      
29,939
  
Vanguard High Yield Bond Portfolio
    
6,563
      
4,275
  
Vanguard Small Company Growth Portfolio
    
130,431
      
30,289
  
Vanguard Mid-Cap Index Portfolio
    
52,558
      
35,776
  
Vanguard REIT Index Portfolio
    
65,709
      
24,228
  
* Vanguard Money Market Portfolio
    
774,227
      
157,280
  
    Total
  
$
4,182,167
    
$
3,153,190
  


* The purchases and proceeds on sales activity for Vanguard Money Market Portfolio was for the period February 2, 2022 (inception) through December 31, 2022.

SENTRY LIFE INSURANCE COMPANY
Sentry Variable Account II
NOTES TO FINANCIAL STATEMENTS
4. Expenses and Related Party Transactions
A mortality and expense risk premium is deducted by the Company from the Variable Account on a daily basis which is equal, on an annual basis, to 1.20% (0.80% mortality and 0.40% expense risk) of the daily net asset value of the Variable Account. This mortality and expense risk premium compensates the Company for assuming these risks under the variable annuity contract.

The Company deducts, on the contract anniversary date, an annual contract maintenance charge of $30, per contract holder, from the contract value by canceling accumulation units. If the contract is surrendered for its full surrender value, on other than the contract anniversary, the contract maintenance charge will be deducted at the time of such surrender. This charge reimburses the Company for administrative expenses relating to maintenance of the contract.

Any premium tax payable to a governmental entity as a result of the existence of the contracts or the Variable Account will be either charged against the purchase payments or against the contract value. Premium taxes up to 3.5% are currently imposed by certain states. Some states assess their premium taxes at the time purchase payments are made; others assess their premium taxes at the time of annuitization. In the event contracts would be issued in states assessing their premium taxes at the time purchase payments are made, the Company currently deducts such premium taxes at the time those purchase payments are made. For contracts issue in states assessing their premium taxes at the time of annuitization, the Company currently deducts the premiums taxes at the point of annuitization.


Sentry Equity Services, Inc., a related party, acts as the underwriter for the contract.

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

The Variable Account categorized its financial instruments into a three level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety.

The Company categorizes financial assets recorded at fair value as follows:
Level 1 - Unadjusted quoted prices accessible in active markets for identical assets at the measurement date. The assets utilizing Level 1 valuations represent investments in publicly-traded registered mutual funds with quoted market prices.

Level 2 - Unadjusted quoted prices for similar assets in active markets or inputs (other than quoted prices) that are observable or that are derived principally from or corroborated by observable market data through correlation or other means. The assets utilizing Level 2 valuations represent investments in privately-traded registered mutual funds only offered through insurance products. These funds have no unfunded commitments or restrictions and the Variable Account always has the ability to redeem its interest in the funds with the investee at NAV daily.


Level 3 - Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.
The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2023:
   
Level 1
    
Level 2
    
Level 3
    
Total
  
                         
Variable Account Investments
    
-
    
$
23,913,240
      
-
    
$
23,913,240
  
The Variable Account only invests in funds with fair value measurements in Level 2 and did not have any assets or liabilities reported at fair value on a nonrecurring basis.

SENTRY LIFE INSURANCE COMPANY
Sentry Variable Account II
NOTES TO FINANCIAL STATEMENTS
6. Changes in Units Outstanding

The changes in units outstanding for the year ended December 31, 2023 were as follows:
         
Units
  
Units
  
Net Increase
         
Issued
  
Redeemed
  
(Decrease)
Janus Henderson Research Portfolio
      
       139
  
     2,472
  
         (2,333)
Janus Henderson Enterprise Portfolio
        
       156
  
     5,506
  
         (5,350)
Janus Henderson Forty Portfolio
        
       197
  
     2,540
  
         (2,343)
Janus Henderson Global Research Portfolio
      
       216
  
     2,910
  
         (2,694)
Janus Henderson Balanced Portfolio
        
       164
  
     1,913
  
         (1,749)
T. Rowe Price Limited Term Bond Portfolio
      
       176
  
     3,174
  
         (2,998)
T. Rowe Price Equity Income Portfolio
      
         19
  
     5,567
  
         (5,548)
T. Rowe Price Moderate Allocation Portfolio
      
       122
  
     5,431
  
         (5,309)
T. Rowe Price Mid-Cap Growth Portfolio
      
         55
  
     2,015
  
         (1,960)
T. Rowe Price International Stock Portfolio
      
         85
  
        773
  
            (688)
Vanguard Balanced Portfolio
        
       342
  
        622
  
            (280)
Vanguard Equity Index Portfolio
        
         25
  
     1,934
  
         (1,909)
Vanguard High Yield Bond Portfolio
        
       109
  
        346
  
            (237)
Vanguard Small Company Growth Portfolio
      
       165
  
        863
  
            (698)
Vanguard Mid-Cap Index Portfolio
        
         57
  
        629
  
            (572)
Vanguard REIT Index Portfolio
        
       145
  
        507
  
            (362)
Vanguard Money Market
        
       884
  
     5,810
  
         (4,926)

The changes in units outstanding for the year ended December 31, 2022 were as follows:
         
Units
  
Units
  
Net Increase
         
Issued
  
Redeemed
  
(Decrease)
Janus Henderson Research Portfolio
      
       174
  
     7,773
  
         (7,599)
Janus Henderson Enterprise Portfolio
        
       453
  
     5,328
  
         (4,875)
Janus Henderson Forty Portfolio
        
       195
  
     7,643
  
         (7,448)
Janus Henderson Global Research Portfolio
      
         78
  
     4,752
  
         (4,674)
Janus Henderson Balanced Portfolio
        
       352
  
     5,749
  
         (5,397)
T. Rowe Price Limited Term Bond Portfolio
      
    1,319
  
     2,783
  
         (1,464)
T. Rowe Price Equity Income Portfolio
      
    1,166
  
     2,911
  
         (1,745)
T. Rowe Price Moderate Allocation Portfolio
      
         88
  
     2,911
  
         (2,823)
T. Rowe Price Mid-Cap Growth Portfolio
      
       126
  
     1,235
  
         (1,109)
T. Rowe Price International Stock Portfolio
      
       367
  
        123
  
              244
Vanguard Balanced Portfolio
        
         47
  
     3,687
  
         (3,640)
Vanguard Equity Index Portfolio
        
         20
  
        556
  
            (536)
Vanguard High Yield Bond Portfolio
        
       115
  
        147
  
              (32)
Vanguard Small Company Growth Portfolio
      
       381
  
        562
  
            (181)
Vanguard Mid-Cap Index Portfolio
        
         27
  
        670
  
            (643)
Vanguard REIT Index Portfolio
        
       940
  
        430
  
              510
* Vanguard Money Market
        
  76,501
  
   15,153
  
         61,348

* The units issued and units redeemed activity for Vanguard Money Market Portfolio was for the period February 2, 2022 (inception) through December 31, 2022.
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Account II
NOTES TO FINANCIAL STATEMENTS
7. Financial Highlights
A summary of unit values, units outstanding and certain financial performance information for each subaccount for variable annuity contracts and the expense ratios, excluding expenses of the underlying funds, for the year ended December 31, 2023 is as follows:

                     
Expenses
    
Income
        
                     
as a % of
    
as a % of
        
         
Net Assets
    
Average
    
Average
        
         
Unit
          
Net
    
Net
    
Total
  
   
Units
    
Value
    
(000's)
    
Assets #
    
Assets
    
Return
  
Janus Henderson Research Portfolio
    
32,746
    
$
28.13
    
$
921
      
1.20
%
    
0.14
%
    
41.49
%
Janus Henderson Enterprise Portfolio
    
51,611
      
243.24
      
12,554
      
1.20
      
0.16
      
16.67
  
Janus Henderson Forty Portfolio
    
35,013
      
46.00
      
1,611
      
1.20
      
0.19
      
38.32
  
Janus Henderson Global Research Portfolio
    
18,585
      
17.52
      
326
      
1.20
      
0.91
      
25.28
  
Janus Henderson Balanced Portfolio
    
26,165
      
36.91
      
966
      
1.20
      
2.09
      
14.05
  
T. Rowe Price Limited Term Bond Portfolio
    
15,631
      
37.81
      
591
      
1.20
      
3.32
      
3.69
  
T. Rowe Price Equity Income Portfolio
    
26,350
      
41.73
      
1,100
      
1.20
      
2.09
      
8.24
  
T. Rowe Price Moderate Allocation Portfolio
    
26,946
      
95.52
      
2,574
      
1.20
      
2.30
      
13.98
  
T. Rowe Price Mid-Cap Growth Portfolio
    
5,620
      
68.42
      
385
      
1.20
      
-
      
18.54
  
T. Rowe Price International Stock Portfolio
    
6,921
      
16.18
      
112
      
1.20
      
0.99
      
14.86
  
Vanguard Balanced Portfolio
    
13,772
      
39.93
      
550
      
1.20
      
2.03
      
12.97
  
Vanguard Equity Index Portfolio
    
9,482
      
50.54
      
479
      
1.20
      
1.46
      
24.63
  
Vanguard High Yield Bond Portfolio
    
2,743
      
25.94
      
71
      
1.20
      
5.08
      
10.34
  
Vanguard Small Company Growth Portfolio
    
8,344
      
47.38
      
395
      
1.20
      
0.41
      
18.23
  
Vanguard Mid-Cap Index Portfolio
    
7,811
      
52.15
      
407
      
1.20
      
1.46
      
14.46
  
Vanguard REIT Index Portfolio
    
6,383
      
44.43
      
284
      
1.20
      
2.50
      
10.38
  
** Vanguard Money Market Portfolio
    
56,422
      
10.44
      
589
      
1.20
      
4.92
      
3.80
  


  A summary of unit values, units outstanding and certain financial performance information for each subaccount for variable annuity contracts and the expense ratios, excluding expenses of the underlying funds, for the year ended December 31, 2022 is as follows:

                     
Expenses
    
Income
        
                     
as a % of
    
as a % of
        
         
Net Assets
    
Average
    
Average
        
         
Unit
          
Net
    
Net
    
Total
  
   
Units
    
Value
    
(000's)
    
Assets #
    
Assets
    
Return ***
  
Janus Henderson Research Portfolio
    
35,079
    
$
19.88
    
$
697
      
1.20
%
    
0.15
%
    
(30.73
)%
Janus Henderson Enterprise Portfolio
    
56,961
      
208.48
      
11,875
      
1.20
      
0.20
      
(16.94
)
Janus Henderson Forty Portfolio
    
37,356
      
33.26
      
1,242
      
1.20
      
0.18
      
(34.35
)
Janus Henderson Global Research Portfolio
    
21,279
      
13.98
      
298
      
1.20
      
1.02
      
(20.38
)
Janus Henderson Balanced Portfolio
    
27,914
      
32.36
      
903
      
1.20
      
1.22
      
(17.40
)
* T. Rowe Price Government Money Portfolio
    
-
      
19.55
      
-
      
1.20
      
0.02
      
(0.37
)
T. Rowe Price Limited Term Bond Portfolio
    
18,629
      
36.46
      
679
      
1.20
      
1.96
      
(5.65
)
T. Rowe Price Equity Income Portfolio
    
31,898
      
38.55
      
1,230
      
1.20
      
1.88
      
(4.50
)
T. Rowe Price Moderate Allocation Portfolio
    
32,255
      
83.80
      
2,703
      
1.20
      
1.56
      
(19.29
)
T. Rowe Price Mid-Cap Growth Portfolio
    
7,580
      
57.72
      
437
      
1.20
      
-
      
(23.51
)
T. Rowe Price International Stock Portfolio
    
7,609
      
14.09
      
107
      
1.20
      
0.79
      
(16.82
)
Vanguard Balanced Portfolio
    
14,052
      
35.34
      
497
      
1.20
      
1.93
      
(15.32
)
Vanguard Equity Index Portfolio
    
11,391
      
40.55
      
462
      
1.20
      
1.37
      
(19.21
)
Vanguard High Yield Bond Portfolio
    
2,980
      
23.51
      
70
      
1.20
      
5.12
      
(10.44
)
Vanguard Small Company Growth Portfolio
    
9,042
      
40.08
      
362
      
1.20
      
0.27
      
(26.25
)
Vanguard Mid-Cap Index Portfolio
    
8,383
      
45.56
      
382
      
1.20
      
1.17
      
(19.79
)
Vanguard REIT Index Portfolio
    
6,745
      
40.26
      
272
      
1.20
      
1.77
      
(27.18
)
** Vanguard Money Market Portfolio
    
61,348
      
10.06
      
617
      
1.20
      
1.66
      
0.59
  

# Excluding the effect of the expenses of the underlying fund portfolios and maintenance charges charged directly to contract holder accounts.

* T.Rowe Price Government Money's shares were terminated on April 28, 2022.
**      Vanguard Money Market's shares became available for investment on February 2, 2022.
***    Total return is not annualized if the underlying fund was initially added and funded or terminated during the period presented.
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Account II
NOTES TO FINANCIAL STATEMENTS
7. Financial Highlights (continued)

A summary of unit values, units outstanding and certain financial performance information for each subaccount for variable annuity contracts and the expense ratios, excluding expenses of the underlying funds, for the year ended December 31, 2021 is as follows:

                     
Expenses
    
Income
        
                     
as a % of
    
as a % of
        
         
Net Assets
    
Average
    
Average
        
         
Unit
          
Net
    
Net
    
Total
  
   
Units
    
Value
    
(000's)
    
Assets #
    
Assets
    
Return
  
Janus Henderson Research Portfolio
    
42,678
    
$
28.70
    
$
1,225
      
1.20
%
    
0.10
%
    
18.90
%
Janus Henderson Enterprise Portfolio
    
61,836
      
251.01
      
15,521
      
1.20
      
0.32
      
15.43
  
Janus Henderson Forty Portfolio
    
44,804
      
50.66
      
2,270
      
1.20
      
-
      
21.43
  
Janus Henderson Global Research Portfolio
    
25,953
      
17.56
      
456
      
1.20
      
0.53
      
16.68
  
Janus Henderson Balanced Portfolio
    
33,311
      
39.18
      
1,305
      
1.20
      
0.91
      
15.80
  
* T. Rowe Price Government Money Portfolio
    
23,476
      
19.62
      
461
      
1.20
      
0.01
      
(1.18
)
T. Rowe Price Limited Term Bond Portfolio
    
20,093
      
38.65
      
777
      
1.20
      
1.35
      
(1.07
)
T. Rowe Price Equity Income Portfolio
    
33,643
      
40.36
      
1,358
      
1.20
      
1.58
      
24.05
  
T. Rowe Price Moderate Allocation Portfolio
    
35,078
      
103.83
      
3,642
      
1.20
      
0.98
      
8.75
  
T. Rowe Price Mid-Cap Growth Portfolio
    
8,688
      
75.45
      
656
      
1.20
      
-
      
13.48
  
T. Rowe Price International Stock Portfolio
    
7,365
      
16.94
      
125
      
1.20
      
0.54
      
0.10
  
Vanguard Balanced Portfolio
    
17,692
      
41.74
      
738
      
1.20
      
1.88
      
17.60
  
Vanguard Equity Index Portfolio
    
11,927
      
50.19
      
599
      
1.20
      
1.23
      
27.02
  
Vanguard High Yield Bond Portfolio
    
3,012
      
26.25
      
79
      
1.20
      
4.12
      
2.44
  
Vanguard Small Company Growth Portfolio
    
9,223
      
54.34
      
501
      
1.20
      
0.41
      
12.85
  
Vanguard Mid-Cap Index Portfolio
    
9,025
      
56.80
      
513
      
1.20
      
1.16
      
22.87
  
Vanguard REIT Index Portfolio
    
6,235
      
55.28
      
345
      
1.20
      
1.99
      
38.55
  

A summary of unit values, units outstanding and certain financial performance information for each subaccount for variable annuity contracts and the expense ratios, excluding expenses of the underlying funds, for the year ended December 31, 2020 is as follows:

                     
Expenses
    
Income
        
                     
as a % of
    
as a % of
        
         
Net Assets
    
Average
    
Average
        
         
Unit
          
Net
    
Net
    
Total
  
   
Units
    
Value
    
(000's)
    
Assets #
    
Assets
    
Return
  
Janus Henderson Research Portfolio
    
44,778
    
$
24.14
    
$
1,081
      
1.20
%
    
0.41
%
    
31.37
%
Janus Henderson Enterprise Portfolio
    
67,141
      
217.44
      
14,599
      
1.20
      
0.07
      
18.04
  
Janus Henderson Forty Portfolio
    
46,512
      
41.72
      
1,940
      
1.20
      
0.27
      
37.75
  
Janus Henderson Global Research Portfolio
    
26,674
      
15.05
      
401
      
1.20
      
0.73
      
18.62
  
Janus Henderson Balanced Portfolio
    
34,240
      
33.83
      
1,158
      
1.20
      
1.77
      
12.95
  
* T. Rowe Price Government Money Portfolio
    
34,874
      
19.86
      
693
      
1.20
      
0.24
      
(0.95
)
T. Rowe Price Limited Term Bond Portfolio
    
22,803
      
39.07
      
891
      
1.20
      
1.97
      
3.46
  
T. Rowe Price Equity Income Portfolio
    
37,071
      
32.54
      
1,206
      
1.20
      
2.37
      
(0.04
)
T. Rowe Price Moderate Allocation Portfolio
    
38,384
      
95.48
      
3,665
      
1.20
      
1.36
      
13.17
  
T. Rowe Price Mid-Cap Growth Portfolio
    
8,801
      
66.49
      
585
      
1.20
      
-
      
22.33
  
T. Rowe Price International Stock Portfolio
    
8,935
      
16.92
      
151
      
1.20
      
0.57
      
13.08
  
Vanguard Balanced Portfolio
    
20,675
      
35.49
      
734
      
1.20
      
2.80
      
9.36
  
Vanguard Equity Index Portfolio
    
12,165
      
39.52
      
481
      
1.20
      
1.75
      
16.79
  
Vanguard High Yield Bond Portfolio
    
3,014
      
25.62
      
77
      
1.20
      
6.27
      
4.41
  
Vanguard Small Company Growth Portfolio
    
11,423
      
48.15
      
550
      
1.20
      
0.67
      
21.71
  
Vanguard Mid-Cap Index Portfolio
    
10,733
      
46.23
      
496
      
1.20
      
1.54
      
16.66
  
Vanguard REIT Index Portfolio
    
6,346
      
39.90
      
253
      
1.20
      
3.02
      
(6.00
)

# Excluding the effect of the expenses of the underlying fund portfolios and maintenance charges charged directly to contract holder accounts.

* T.Rowe Price Government Money's shares were terminated on April 28, 2022.
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Account II
NOTES TO FINANCIAL STATEMENTS


7. Financial Highlights (continued)

A summary of unit values, units outstanding and certain financial performance information for each subaccount for variable annuity contracts and the expense ratios, excluding expenses of the underlying funds, for the year ended December 31, 2019 is as follows:

                     
Expenses
    
Income
        
                     
as a % of
    
as a % of
        
         
Net Assets
    
Average
    
Average
        
         
Unit
          
Net
    
Net
    
Total
  
   
Units
    
Value
    
(000's)
    
Assets #
    
Assets
    
Return
  
Janus Henderson Research Portfolio
    
49,818
    
$
18.37
    
$
915
      
1.20
%
    
0.46
%
    
33.92
%
Janus Henderson Enterprise Portfolio
    
71,947
      
184.20
      
13,253
      
1.20
      
0.20
      
33.89
  
Janus Henderson Forty Portfolio
    
48,036
      
30.29
      
1,455
      
1.20
      
0.15
      
35.54
  
Janus Henderson Global Research Portfolio
    
30,943
      
12.69
      
393
      
1.20
      
1.00
      
27.52
  
Janus Henderson Balanced Portfolio
    
41,105
      
29.95
      
1,231
      
1.20
      
1.91
      
21.14
  
* T. Rowe Price Government Money Portfolio
    
29,153
      
20.05
      
584
      
1.20
      
1.72
      
0.51
  
T. Rowe Price Limited Term Bond Portfolio
    
23,352
      
37.76
      
882
      
1.20
      
2.40
      
3.11
  
T. Rowe Price Equity Income Portfolio
    
43,054
      
32.55
      
1,401
      
1.20
      
2.30
      
24.90
  
T. Rowe Price Moderate Allocation Portfolio
    
43,841
      
84.37
      
3,699
      
1.20
      
1.94
      
18.38
  
T. Rowe Price Mid-Cap Growth Portfolio
    
10,631
      
54.35
      
578
      
1.20
      
0.11
      
29.74
  
T. Rowe Price International Stock Portfolio
    
10,266
      
14.96
      
154
      
1.20
      
2.04
      
26.26
  
Vanguard Balanced Portfolio
    
28,461
      
32.46
      
924
      
1.20
      
2.69
      
21.04
  
Vanguard Equity Index Portfolio
    
15,508
      
33.84
      
525
      
1.20
      
1.64
      
29.75
  
Vanguard High Yield Bond Portfolio
    
5,106
      
24.54
      
125
      
1.20
      
6.18
      
14.30
  
Vanguard Small Company Growth Portfolio
    
12,181
      
39.56
      
482
      
1.20
      
0.51
      
26.59
  
Vanguard Mid-Cap Index Portfolio
    
12,096
      
39.63
      
479
      
1.20
      
1.50
      
29.33
  
Vanguard REIT Index Portfolio
    
10,460
      
42.45
      
444
      
1.20
      
2.63
      
27.29
  

# Excluding the effect of the expenses of the underlying fund portfolios and maintenance charges charged directly to contract holder accounts.

* T.Rowe Price Government Money's shares were terminated on April 28, 2022.

8. Diversification Requirements

Under the provisions of Section 817(h) of the Internal Revenue Code of 1986 (the Code), as amended, a variable contract, other than a contract issued in connection with certain types of employee benefit plans, will not be treated as a variable contract for federal tax purposes for any period for which the investments of the segregated asset account on which the contract is based are not adequately diversified. Each subaccount is required to satisfy the requirements of Section 817(h). The Code provides that the "adequately diversified" requirement may be met if the underlying investments satisfy either the statutory safe harbor test or diversification requirements set forth in regulations issued by the Secretary of the Treasury.

The Secretary of the Treasury has issued regulations under Section 817(h) of the Code. The Variable Account intends that each of the subaccounts shall comply with the diversification requirements and, in the event of any failure to comply, will take immediate corrective action to assure compliance.