AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

 

 

 

 

 

 

 

 

 

FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023
AND FOR EACH OF THE PERIODS IN THE TWO YEARS THEN ENDED
AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 
 

 

 

 

 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Policyowners of Ameritas Life Insurance Corp. Separate Account LLVA

and the Board of Directors of Ameritas Life Insurance Corp.

Lincoln, Nebraska

 

Opinion on the Financial Statements and Financial Highlights

 

We have audited the accompanying statements of net assets for each of the subaccounts of Ameritas Life Insurance Corp. Separate Account LLVA (the “Account”) listed in Note 1 as of December 31, 2023, the related statements of operations, the statements of changes in net assets, the financial highlights, and the related notes for the periods presented in Note 1. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the subaccounts constituting the Account as of December 31, 2023, and the results of their operations, the changes in their net assets, and the financial highlights for periods presented in Note 1, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

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

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The subaccounts are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the subaccounts’ internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2023, by correspondence with the custodians. We believe that our audits provide a reasonable basis for our opinion.

 

 

/s/ Deloitte & Touche LLP

 

Omaha, Nebraska

March 12, 2024

 

We have served as the Account’s auditor since 1997.

 

 

 

 

 

 
 

 

 

 

 

 

 

 

 

 

 

 

 

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 FS-3 
 
AMERITAS LIFE INSURANCE CORP.
SEPARATE ACCOUNT LLVA
STATEMENTS OF NET ASSETS
DECEMBER 31, 2023
               
               
ASSETS        
INVESTMENTS AT FAIR VALUE:        
               
  Calvert Variable Series, Inc. (Calvert):        
    Calvert VP SRI Balanced Portfolio, Class I (Balanced) -        
      420,338.586 shares at $2.37 per share (cost $930,159)     $ 996,202
    Calvert VP SRI Mid Cap Portfolio (Mid Cap) -        
      14,304.625 shares at $25.47 per share (cost $403,685)       364,339
  Deutsche DWS Investments VIT Funds (Scudder):        
    DWS Small Cap Index VIP Portfolio, Class A (Small Cap) -        
      10,753.296 shares at $13.63 per share (cost $176,065)       146,567
  Deutsche DWS Variable Series II (Scudder):        
    DWS Small Mid Cap Value VIP Portfolio, Class A (Small Mid Value) -      
      120,729.885 shares at $13.86 per share (cost $1,612,100)       1,673,316
    DWS International Growth VIP Portfolio, Class A (Thematic) -        
      47,161.768 shares at $15.11 per share (cost $726,102)       712,614
  Deutsche DWS Variable Series I (Scudder):        
    DWS Capital Growth VIP Portfolio, Class A (Growth) -        
      18,789.406 shares at $37.84 per share (cost $644,183)       710,991
  Fidelity(R) Variable Insurance Products (Fidelity):        
    Fidelity(R) VIP Overseas Portfolio, Initial Class (Overseas IC) -        
      132,351.357 shares at $25.82 per share (cost $2,808,947)       3,417,312
    Fidelity(R) VIP Investment Grade Bond Portfolio, Initial Class (Inv. Grade Bond IC) -    
      1,961,604.473 shares at $11.17 per share (cost $25,055,833)       21,911,122
    Fidelity(R) VIP Equity-Income Portfolio(SM), Initial Class (Equity Income IC) -      
      126,778.361 shares at $24.85 per share (cost $2,922,955)       3,150,442
    Fidelity(R) VIP Growth Portfolio, Initial Class (Growth IC) -        
      54,040.464 shares at $93.10 per share (cost $4,356,670)       5,031,167
    Fidelity(R) VIP High Income Portfolio, Initial Class (High Income IC) -       
      431,352.127 shares at $4.60 per share (cost $2,188,585)       1,984,220
    Fidelity(R) VIP High Income Portfolio, Service Class (High Income SC) -      
      6,046.614 shares at $4.56 per share (cost $32,782)       27,573
    Fidelity(R) VIP Contrafund(SM) Portfolio, Initial Class (Contrafund IC) -      
      435,368.582 shares at $48.63 per share (cost $15,566,451)       21,171,974
    Fidelity(R) VIP Contrafund(SM) Portfolio, Service Class (Contrafund SC) -      
      10,624.710 shares at $48.30 per share (cost $353,049)       513,173
    Fidelity(R) VIP Mid Cap Portfolio, Initial Class (Mid Cap IC) -        
      213,827.703 shares at $36.44 per share (cost $7,279,572)       7,791,882
    Fidelity(R) VIP Mid Cap Portfolio, Service Class (Mid Cap SC) -        
      5,572.718 shares at $35.91 per share (cost $185,057)       200,116
    Fidelity(R) VIP Strategic Income Portfolio, Initial Class (Strategic) -      
      1,041,949.328 shares at $10.48 per share (cost $11,859,213)       10,919,629

 

 

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

 FS-4 
 
AMERITAS LIFE INSURANCE CORP.
SEPARATE ACCOUNT LLVA
STATEMENTS OF NET ASSETS
DECEMBER 31, 2023
               
               
ASSETS, continued        
INVESTMENTS AT FAIR VALUE:        
               
  Fidelity(R) Variable Insurance Products (Fidelity), continued:        
    Fidelity(R) VIP Government Money Market Portfolio, Initial Class (Money Market) -    
      32,988,495.850 shares at $1.00 per share (cost $32,988,496)     $ 32,988,496
  AIM Variable Insurance Funds (AIM):        
    Invesco V.I. Diversified Dividend Fund Portfolio, Series I (Dividend) -      
      4,180.512 shares at $24.24 per share (cost $103,063)       101,336
    Invesco V.I. Health Care Fund Portfolio, Series I (Health) -        
      1,550.835 shares at $25.91 per share (cost $42,197)       40,182
    Invesco V.I. Technology Fund Portfolio, Series I (Technology) -        
      7,796.780 shares at $18.50 per share (cost $124,853)       144,240
    Invesco V.I. EQV International Equity Fund Portfolio, Series I (Intl. Growth) -       
      22,532.537 shares at $34.09 per share (cost $786,926)       768,134
    Invesco V.I. American Franchise Fund Portfolio, Series I (Franchise) -      
      2,002.419 shares at $58.96 per share (cost $100,009)       118,063
  Janus Aspen Series (Janus):        
    Janus Henderson Research Portfolio, Institutional Shares (Growth) -      
      1,530.234 shares at $45.15 per share (cost $43,538)       69,090
  Neuberger Berman Advisers Management Trust (Neuberger Berman):      
    Neuberger Berman AMT Mid Cap Growth Portfolio, Class I (Mid-Cap) -      
      6,107.671 shares at $26.63 per share (cost $157,619)       162,647
    Neuberger Berman AMT Short Duration Bond Portfolio, Class I (Bond) -      
      4.609 shares at $9.64 per share (cost $47)       44
    Neuberger Berman AMT Sustainable Equity Portfolio, Class I (Equity) -      
      30,014.944 shares at $33.35 per share (cost $830,680)       1,000,998
    Neuberger Berman AMT Mid Cap Intrinsic Value Portfolio, Class I (Regency) -       
      28,554.634 shares at $15.76 per share (cost $501,243)       450,021
  Rydex Variable Trust (Rydex):        
    Rydex Nova Fund Portfolio (Nova) -        
      7,577.785 shares at $160.37 per share (cost $1,082,292)       1,215,249
    Rydex NASDAQ-100(R) Fund Portfolio (NASDAQ) -        
      47,514.407 shares at $70.91 per share (cost $2,560,688)       3,369,247
    Rydex Precious Metals Fund Portfolio (Precious Metals) -        
      54,558.052 shares at $37.75 per share (cost $1,957,574)       2,059,566
    Rydex Inverse S&P 500(R) Strategy Fund Portfolio (Inv. S&P 500) -      
      3,543.045 shares at $30.03 per share (cost $120,147)       106,398
    Rydex Government Long Bond 1.2x Strategy Fund Portfolio (Gov. Long Bond) -      
      34,384.860 shares at $21.43 per share (cost $1,110,109)       736,868
    Rydex Inverse NASDAQ-100(R) Strategy Fund Portfolio (Inverse NASDAQ) -      
      8,216.986 shares at $17.20 per share (cost $150,182)       141,332

.

 

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

 FS-5 
 
AMERITAS LIFE INSURANCE CORP.
SEPARATE ACCOUNT LLVA
STATEMENTS OF NET ASSETS
DECEMBER 31, 2023
               
               
ASSETS, continued        
INVESTMENTS AT FAIR VALUE:        
               
  Rydex Variable Trust (Rydex), continued:        
    Rydex Inverse Government Long Bond Strategy Fund Portfolio (Inv. Long Bond) -      
      2,046.037 shares at $103.20 per share (cost $198,988)     $ 211,151
    Rydex Russell 2000(R) 1.5x Strategy Fund Portfolio (Russell) -        
      6,862.908 shares at $69.76 per share (cost $490,116)       478,756
    Guggenheim Long Short Equity Fund Portfolio (Sector Rotation) -      
      27,145.609 shares at $16.97 per share (cost $398,253)       460,661
  Third Avenue Variable Series Trust (Third Avenue):        
    Third Avenue Value Portfolio (Value) -        
      101,272.581 shares at $23.27 per share (cost $1,802,010)       2,356,613
  Vanguard(R) Variable Insurance Fund (Vanguard):        
    Vanguard(R) Equity Index Portfolio (Equity Index) -        
      1,344,147.060 shares at $60.89 per share (cost $68,321,185)       81,845,114
    Vanguard(R) Total Bond Market Index Portfolio (Total Bond) -          
      7,465,829.354 shares at $10.63 per share (cost $87,263,237)       79,361,766
    Vanguard(R) Real Estate Index Portfolio (REIT Index) -        
      1,857,290.886 shares at $11.92 per share (cost $22,915,893)       22,138,907
    Vanguard(R) Mid-Cap Index Portfolio (Mid-Cap) -        
      1,388,421.724 shares at $23.93 per share (cost $29,914,818)       33,224,932
    Vanguard(R) Total Stock Market Index Portfolio (Stock Market Index) -      
      993,277.280 shares at $49.45 per share (cost $39,113,391)       49,117,562
    Vanguard(R) Conservative Allocation Portfolio (Conservative) -        
      302,552.632 shares at $24.44 per share (cost $7,637,945)       7,394,386
    Vanguard(R) Moderate Allocation Portfolio (Moderate) -        
      233,977.922 shares at $29.11 per share (cost $6,603,608)       6,811,097
    Vanguard(R) Short-Term Investment-Grade Portfolio (Short-Term) -      
      2,264,241.987 shares at $10.31 per share (cost $24,073,309)       23,344,335
    Vanguard(R) Total International Stock Market Index Portfolio (International Stock) -    
      406,096.522 shares at $21.09 per share (cost $8,749,224)       8,564,576
    Vanguard(R) Global Bond Index Portfolio (Global Bond) -        
      112,487.618 shares at $18.60 per share (cost $2,351,934)       2,092,270
    Vanguard(R) Equity Income Portfolio (Equity Income) -        
      930,828.515 shares at $23.91 per share (cost $20,700,949)       22,256,110
    Vanguard(R) High Yield Bond Portfolio (High Yield Bond) -         
      1,678,703.524 shares at $7.37 per share (cost $12,555,876)       12,372,045
    Vanguard(R) Growth Portfolio (Growth) -         
      875,283.504 shares at $25.34 per share (cost $21,937,584)       22,179,684
    Vanguard(R) Balanced Portfolio (Balanced) -        
      1,016,818.264 shares at $23.29 per share (cost $23,199,441)       23,681,697

 

 

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

 FS-6 
 
AMERITAS LIFE INSURANCE CORP.
SEPARATE ACCOUNT LLVA
STATEMENTS OF NET ASSETS
DECEMBER 31, 2023
               
               
ASSETS, continued        
INVESTMENTS AT FAIR VALUE:        
               
  Vanguard(R) Variable Insurance Fund (Vanguard), continued:        
    Vanguard(R) International Portfolio (International) -        
      1,381,018.439 shares at $24.57 per share (cost $36,703,835)     $ 33,931,623
    Vanguard(R) Diversified Value Portfolio (Diversified) -        
      1,051,096.682 shares at $15.63 per share (cost $14,459,156)       16,428,641
    Vanguard(R) Small Company Growth Portfolio (Small Company Growth) -      
      863,517.500 shares at $17.61 per share (cost $16,797,076)       15,206,543
  Allspring Funds - Variable Trust (Allspring):        
    Allspring VT Discovery SMID Cap Growth Fund Portfolio, Class 2 (Discovery) -      
      21,976.201 shares at $20.46 per share (cost $563,758)       449,633
    Allspring VT Opportunity Fund Portfolio, Class 2 (Opportunity) -      
      6,892.823 shares at $25.99 per share (cost $172,669)       179,144
  ProFunds VP (ProFunds):        
    ProFund VP Bull Portfolio (Bull) -        
      22,298.442 shares at $50.53 per share (cost $1,107,559)       1,126,740
    ProFund VP Europe 30 Portfolio (Europe) -        
      2,519.228 shares at $25.90 per share (cost $56,451)       65,248
    ProFund VP Mid-Cap Value Portfolio (Mid-Cap) -        
      0.000 shares at $42.07 per share (cost $0)                                  -
    ProFund VP Nasdaq-100 Portfolio (NASDAQ-100) -        
      200.03 shares at $57.87 per share (cost $10,587)       11,576
    ProFund VP Small-Cap Portfolio (Small-Cap) -        
      134.798 shares at $34.30 per share (cost $4,335)       4,624
    ProFund VP Small-Cap Value Portfolio (Small-Cap Value) -        
      0.000 shares at $42.96 per share (cost $0)                                  -
    ProFund VP Dow 30 Portfolio (Classic Dow) -        
      0.000 shares at $20.60 per share (cost $0)                                  -
  Inverse ProFunds VP (ProFunds):        
    ProFund VP Bear Portfolio (Bear) -        
      75.124 shares at $14.39 per share (cost $1,253)       1,081
    ProFund VP Short Nasdaq-100 Portfolio (Short NASDAQ) -        
      0.000 shares at $12.29 per share (cost $0)                                  -
    ProFund VP Short Small-Cap Portfolio (Short Small-Cap) -        
      0.000 shares at $22.09 per share (cost $0)                                  -
    ProFund VP Short Dow 30 Portfolio (Short Dow) -        
      36.062 shares at $21.58 per share (cost $2,712)       778
  Ultra ProFunds VP (ProFunds):        
    ProFund VP UltraMid-Cap Portfolio (UltraMid) -        
      537.537 shares at $35.05 per share (cost $18,266)       18,841

 

 

The accompanying notes are an integral part of these financial statements

 FS-7 
 
AMERITAS LIFE INSURANCE CORP.
SEPARATE ACCOUNT LLVA
STATEMENTS OF NET ASSETS
DECEMBER 31, 2023
               
               
ASSETS, continued        
INVESTMENTS AT FAIR VALUE:        
               
  Ultra ProFunds VP (ProFunds), continued:        
    ProFund VP UltraNasdaq-100 Portfolio (UltraOTC) -        
      51,511.250 shares at $30.94 per share (cost $1,690,910)     $ 1,593,758
    ProFund VP UltraSmall-Cap Portfolio (UltraSmall) -        
      1,030.593 shares at $13.81 per share (cost $25,091)       14,232
    ProFund VP UltraBull Portfolio (UltraBull) -        
      4,806.821 shares at $30.02 per share (cost $141,585)       144,301
  Non-Equity ProFunds VP (ProFunds):        
    ProFund VP U.S. Government Plus Portfolio (U.S. Gov. Plus) -        
      1,174.009 shares at $12.72 per share (cost $16,150)       14,933
    ProFund VP Rising Rates Opportunity Portfolio (Opportunity) -        
      0.000 shares at $44.70 per share (cost $0)                                  -
  Sector ProFunds VP (ProFunds):        
    ProFund VP Energy Portfolio (Oil & Gas) -        
      1,837.114 shares at $42.19 per share (cost $71,344)       77,508
    ProFund VP Precious Metals Portfolio (Precious Metals) -        
      1,791.643 shares at $25.40 per share (cost $47,635)       45,508
    ProFund VP Real Estate Portfolio (Real Estate) -        
      1,767.503 shares at $47.41 per share (cost $110,686)       83,797
  ProFund Access VP High Yield (ProFunds):        
    ProFund Access VP High Yield Portfolio (High Yield) -        
      0.000 shares at $24.75 per share (cost $0)                                  -
  ProFund VP Government Money Market (ProFunds):        
    ProFund VP Government Money Market Portfolio (Money Market) -      
      162,654.450 shares at $1.00 per share (cost $162,654)       162,654
  PIMCO Variable Insurance Trust (Pimco):        
    PIMCO CommodityRealReturn(R) Strategy Portfolio,         
     Administrative Class (Commodity) -        
      503,860.154 shares at $5.35 per share (cost $4,058,239)       2,695,652
    PIMCO Total Return Portfolio, Administrative Class (Total Return) -      
      1,216,274.120 shares at $9.18 per share (cost $12,741,392)       11,165,396
    PIMCO Low Duration Portfolio, Administrative Class (Low Duration) -      
      1,114.428 shares at $9.60 per share (cost $11,372)       10,699
  American Century Investments (American Century):        
    American Century VP Mid Cap Value Fund Portfolio, Class I (Mid Cap) -      
      125,320.533 shares at $19.44 per share (cost $2,550,057)       2,436,231
    American Century VP International Fund Portfolio, Class I (International) -      
      21,758.777 shares at $10.58 per share (cost $225,543)       230,208

 

 

 

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

 FS-8 
 
AMERITAS LIFE INSURANCE CORP.
SEPARATE ACCOUNT LLVA
STATEMENTS OF NET ASSETS
DECEMBER 31, 2023
 
               
ASSETS, continued        
INVESTMENTS AT FAIR VALUE:        
               
  American Century Investments (American Century), continued:        
    American Century VP Inflation Protection Fund Portfolio, Class I (Inflation) -      
      145,482.107 shares at $9.39 per share (cost $1,518,942)     $ 1,366,077
  American Funds Insurance Series(R) (American Funds):        
    American Funds(R) IS Growth-Income Fund Portfolio, Class 1 (IS Growth-Inc) -      
      13,343.894 shares at $59.26 per share (cost $722,283)       790,759
    American Funds(R) IS Growth Fund Portfolio, Class 1 (IS Growth) -      
      20,299.403 shares at $99.44 per share (cost $1,976,220)       2,018,573
    American Funds(R) IS Washington Mutual Investors Fund Portfolio, Class 1 (Blue Chip) -
      43,281.631 shares at $14.49 per share (cost $605,258)       627,151
    American Funds(R) IS International Fund Portfolio, Class 1 (IS International) -      
      10,026.260 shares at $17.50 per share (cost $198,841)       175,460
    American Funds(R) IS New World Fund(R) Portfolio, Class 1 (IS New World) -      
      43,646.938 shares at $25.48 per share (cost $1,263,761)       1,112,124
  Franklin Templeton Variable Insurance Products Trust (Franklin Templeton):      
    Templeton Global Bond VIP Fund Portfolio, Class 2 (Global Inc.) -      
      353,513.567 shares at $12.84 per share (cost $5,708,081)       4,539,114
  MFS(R) Variable Insurance Trust (MFS):        
    MFS(R) Utilities Series Portfolio, Initial Class (Utilities IC) -        
      61,262.517 shares at $32.25 per share (cost $2,043,736)       1,975,716
    MFS(R) Mid Cap Growth Series Portfolio, Initial Class (Mid Cap) -      
      98,564.640 shares at $8.57 per share (cost $985,273)       844,699
  MFS(R) Variable Insurance Trust II (MFS):        
    MFS(R) Research International Portfolio, Initial Class (Research) -       
      200,869.445 shares at $16.88 per share (cost $3,191,859)       3,390,676
  Calvert Variable Products, Inc. (Summit):        
    Calvert VP S&P 500 Index Portfolio (S&P 500) -         
      29,071.126 shares at $172.99 per share (cost $4,435,449)       5,029,014
    Calvert VP EAFE International Index Portfolio, Class I (EAFE Intl.) -      
      10,421.900 shares at $95.39 per share (cost $904,816)       994,145
    Calvert VP S&P MidCap 400 Index Portfolio, Class I (S&P MidCap) -      
      3,764.146 shares at $119.60 per share (cost $394,162)       450,192
    Calvert VP Volatility Managed Growth Portfolio, Class F (Growth) -       
      299,676.519 shares at $20.58 per share (cost $5,242,087)       6,167,343
    Calvert VP Volatility Managed Moderate Growth Portfolio, Class F (Mod. Growth) -     
      261,188.256 shares at $19.28 per share (cost $4,301,057)       5,035,710
    Calvert VP Volatility Managed Moderate Portfolio, Class F (Moderate) -       
      502,529.279 shares at $17.73 per share (cost $8,227,504)       8,909,844
    Calvert VP Russell 2000 Small Cap Index Portfolio, Class I (Russell Small Cap) -      
      71,494.126 shares at $79.76 per share (cost $5,810,520)       5,702,371

 

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

 FS-9 
 
AMERITAS LIFE INSURANCE CORP.
SEPARATE ACCOUNT LLVA
STATEMENTS OF NET ASSETS
DECEMBER 31, 2023
 
               
ASSETS, continued        
INVESTMENTS AT FAIR VALUE:        
               
  T. Rowe Price Equity Series, Inc. (T. Rowe):        
    T. Rowe Price Blue Chip Growth Portfolio (Blue Chip) -        
      253,587.446 shares at $46.19 per share (cost $8,777,604)     $ 11,713,204
  Morgan Stanley Variable Insurance Fund, Inc. (Morgan Stanley):        
    Morgan Stanley VIF Emerging Markets Equity Portfolio, Class I (Emerging Markets) -   
      776,869.292 shares at $12.90 per share (cost $11,440,600)       10,021,614
  DFA Investment Dimensions Group Inc. (DFA):        
    VA Global Bond Portfolio (Bond) -        
      2,008,572.980 shares at $9.71 per share (cost $20,702,528)       19,503,244
    VA International Small Portfolio (Small) -        
      1,032,259.607 shares at $11.88 per share (cost $12,511,999)       12,263,244
    VA International Value Portfolio (Value) -        
      1,717,361.716 shares at $13.61 per share (cost $20,356,961)       23,373,293
    VA Short-Term Fixed Portfolio (Fixed) -        
      1,500,790.265 shares at $10.03 per share (cost $15,283,732)       15,052,926
    VA U.S. Large Value Portfolio (Large) -        
      754,924.593 shares at $32.54 per share (cost $20,184,818)       24,565,246
    VA U.S. Targeted Value Portfolio (Targeted) -        
      915,390.037 shares at $22.60 per share (cost $18,071,932)       20,687,815
    VA Global Moderate Allocation Portfolio (Global) -        
      812,045.006 shares at $15.08 per share (cost $10,939,853)       12,245,639
    VA Equity Allocation Portfolio (Equity) -        
      279,887.823 shares at $14.19 per share (cost $3,797,257)       3,971,608
               
               
  NET ASSETS REPRESENTING EQUITY OF POLICYOWNERS     $ 810,712,362
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 FS-10 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       Calvert 
               
      Balanced      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  15,758       
  Mortality and expense risk charge     (5,311)      
Net investment income(loss)     10,447       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     3,775       
  Net realized gain(loss) on sale of fund shares     3,290       
Net realized gain(loss)     7,065       
               
Change in unrealized appreciation/depreciation     131,245       
               
Net increase(decrease) in net assets resulting            
  from operations    $  148,757       
               
               
      Balanced
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  10,447     $  6,803 
  Net realized gain(loss)     7,065      97,484 
  Net change in unrealized appreciation/depreciation      131,245      (255,061)
Net increase(decrease) in net assets resulting            
  from operations     148,757      (150,774)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     1,200      117,301 
  Subaccounts transfers (including fixed account), net     (80,568)     58,118 
  Transfers for policyowner benefits and terminations     (16,465)     (33,837)
  Policyowner maintenance charges     (196)     (196)
Net increase(decrease) from policyowner transactions     (96,029)     141,386 
               
Total increase(decrease) in net assets     52,728      (9,388)
Net assets at beginning of period     943,474      952,862 
Net assets at end of period    $  996,202     $  943,474 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-11 
 

 

 

 

 

 

 Calvert     Scudder 
                         Small       
Mid Cap         Small Cap         Mid Value      
                                 
2023         2023         2023      
                                 
                                 
 $  670           $  2,609           $  17,217       
  (2,112)           (1,085)           (7,999)      
  (1,442)           1,524            9,218       
                                 
                                 
                          -           5,594            57,816       
  (5,490)           (33,446)           (16,057)      
  (5,490)           (27,852)           41,759       
                                 
  44,119            52,922            176,825       
                                 
                                 
 $  37,187           $  26,594           $  227,802       
                                 
                                 
Mid Cap   Small Cap   Small Mid Value
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (1,442)    $  (2,744)    $  1,524     $  778     $  9,218     $  5,114 
  (5,490)     111,989      (27,852)     39,932      41,759      30,825 
  44,119      (251,635)     52,922      (102,618)     176,825      (339,759)
                                 
  37,187      (142,390)     26,594      (61,908)     227,802      (303,820)
                                 
                                 
                          -                             -                             -                             -     3,270      71,075 
  (3,718)     (5,788)     (97,596)     (2,195)     (120,727)     175,354 
  (24,346)     (414,053)     (7,682)     (6,366)     (100,909)     (202,958)
  (74)     (69)     (72)     (89)     (87)     (95)
  (28,138)     (419,910)     (105,350)     (8,650)     (218,453)     43,376 
                                 
  9,049      (562,300)     (78,756)     (70,558)     9,349      (260,444)
  355,290      917,590      225,323      295,881      1,663,967      1,924,411 
 $  364,339     $  355,290     $  146,567     $  225,323     $  1,673,316     $  1,663,967 
                                 
                                 

 FS-12 
 


AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       Scudder 
               
      Thematic      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  5,252       
  Mortality and expense risk charge     (3,407)      
Net investment income(loss)     1,845       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (4,217)      
Net realized gain(loss)     (4,217)      
               
Change in unrealized appreciation/depreciation     102,277       
               
Net increase(decrease) in net assets resulting            
  from operations    $  99,905       
               
               
      Thematic
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  1,845     $  4,531 
  Net realized gain(loss)     (4,217)     (34,780)
  Net change in unrealized appreciation/depreciation      102,277      (294,306)
Net increase(decrease) in net assets resulting            
  from operations     99,905      (324,555)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     376      492 
  Subaccounts transfers (including fixed account), net     (4,833)     30,136 
  Transfers for policyowner benefits and terminations     (41,916)     (180,697)
  Policyowner maintenance charges     (26)     (47)
Net increase(decrease) from policyowner transactions     (46,399)     (150,116)
               
Total increase(decrease) in net assets     53,506      (474,671)
Net assets at beginning of period     659,108      1,133,779 
Net assets at end of period    $  712,614     $  659,108 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-13 
 

 

 

 

 

 

 Scudder     Fidelity 
                         Inv. Grade       
Growth         Overseas IC         Bond IC      
                                 
2023         2023         2023      
                                 
                                 
 $  415           $  33,688           $  554,924       
  (2,881)           (16,967)           (120,308)      
  (2,466)           16,721            434,616       
                                 
                                 
  22,849            8,520                                    -      
  (1,699)           56,454            (578,367)      
  21,150            64,974            (578,367)      
                                 
  159,840            484,455            1,321,717       
                                 
                                 
 $  178,524           $  566,150           $  1,177,966       
                                 
                                 
Growth   Overseas IC   Inv. Grade Bond IC
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (2,466)    $  (2,321)    $  16,721     $  16,983     $  434,616     $  402,259 
  21,150      78,789      64,974      109,353      (578,367)     876,055 
  159,840      (291,623)     484,455      (1,157,208)     1,321,717      (4,926,385)
                                 
  178,524      (215,155)     566,150      (1,030,872)     1,177,966      (3,648,071)
                                 
                                 
  59,984      145,352      270      8,497      203,217      361,519 
  33,517      (250,283)     88,230      (48,490)     659,970      (333,199)
  (11,064)     (5,978)     (122,343)     (348,333)     (2,519,341)     (2,103,933)
  (84)     (77)     (346)     (361)     (87,999)     (95,488)
  82,353      (110,986)     (34,189)     (388,687)     (1,744,153)     (2,171,101)
                                 
  260,877      (326,141)     531,961      (1,419,559)     (566,187)     (5,819,172)
  450,114      776,255      2,885,351      4,304,910      22,477,309      28,296,481 
 $  710,991     $  450,114     $  3,417,312     $  2,885,351     $  21,911,122     $  22,477,309 
                                 
                                 

 

 FS-14 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       Fidelity 
       Equity Income        
      IC      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  58,060       
  Mortality and expense risk charge     (17,980)      
Net investment income(loss)     40,080       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     87,150       
  Net realized gain(loss) on sale of fund shares     16,986       
Net realized gain(loss)     104,136       
               
Change in unrealized appreciation/depreciation     150,618       
               
Net increase(decrease) in net assets resulting            
  from operations    $  294,834       
               
               
      Equity Income IC
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  40,080     $  40,658 
  Net realized gain(loss)     104,136      162,312 
  Net change in unrealized appreciation/depreciation      150,618      (370,823)
Net increase(decrease) in net assets resulting            
  from operations     294,834      (167,853)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     960      33,987 
  Subaccounts transfers (including fixed account), net     (110,856)     265,122 
  Transfers for policyowner benefits and terminations     (132,316)     (171,028)
  Policyowner maintenance charges     (373)     (345)
Net increase(decrease) from policyowner transactions     (242,585)     127,736 
               
Total increase(decrease) in net assets     52,249      (40,117)
Net assets at beginning of period     3,098,193      3,138,310 
Net assets at end of period    $  3,150,442     $  3,098,193 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-15 
 

 

 

 

 

 

 Fidelity 
Growth         High Income         High Income      
IC         IC         SC      
                                 
2023         2023         2023      
                                 
                                 
 $  5,824           $  108,152           $  1,505       
  (24,698)           (9,458)           (169)      
  (18,874)           98,694            1,336       
                                 
                                 
  207,745                                    -                                   -      
  (6,823)           (61,725)           (810)      
  200,922            (61,725)           (810)      
                                 
  1,128,219            136,554            2,026       
                                 
                                 
 $  1,310,267           $  173,523           $  2,552       
                                 
                                 
Growth IC   High Income IC   High Income SC
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (18,874)    $  698     $  98,694     $  86,895     $  1,336     $  1,331 
  200,922      421,323      (61,725)     (61,617)     (810)     (261)
  1,128,219      (1,744,804)     136,554      (280,820)     2,026      (5,126)
                                 
  1,310,267      (1,322,783)     173,523      (255,542)     2,552      (4,056)
                                 
                                 
  175,469      150,138      3,653      1,285                              -                             -
  (135,046)     (98,743)     114,971      (141,009)     4                              -
  (242,774)     (695,406)     (61,643)     (160,362)     (3,502)     (1,497)
  (756)     (779)     (128)     (136)     (3)     (4)
  (203,107)     (644,790)     56,853      (300,222)     (3,501)     (1,501)
                                 
  1,107,160      (1,967,573)     230,376      (555,764)     (949)     (5,557)
  3,924,007      5,891,580      1,753,844      2,309,608      28,522      34,079 
 $  5,031,167     $  3,924,007     $  1,984,220     $  1,753,844     $  27,573     $  28,522 
                                 
                                 

 

 FS-16 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       Fidelity 
       Contrafund       
      IC      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  94,029       
  Mortality and expense risk charge     (108,418)      
Net investment income(loss)     (14,389)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions     680,895       
  Net realized gain(loss) on sale of fund shares     373,707       
Net realized gain(loss)     1,054,602       
               
Change in unrealized appreciation/depreciation     4,380,578       
               
Net increase(decrease) in net assets resulting            
  from operations    $  5,420,791       
               
               
      Contrafund IC
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (14,389)    $  (11,920)
  Net realized gain(loss)     1,054,602      1,412,630 
  Net change in unrealized appreciation/depreciation      4,380,578      (7,761,825)
Net increase(decrease) in net assets resulting            
  from operations     5,420,791      (6,361,115)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     70,789      136,051 
  Subaccounts transfers (including fixed account), net     (187,699)     (491,776)
  Transfers for policyowner benefits and terminations     (1,194,160)     (623,682)
  Policyowner maintenance charges     (1,525)     (1,841)
Net increase(decrease) from policyowner transactions     (1,312,595)     (981,248)
               
Total increase(decrease) in net assets     4,108,196      (7,342,363)
Net assets at beginning of period     17,063,778      24,406,141 
Net assets at end of period    $  21,171,974     $  17,063,778 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-17 
 

 

 

 

 

 

 Fidelity 
Contrafund         Mid Cap          Mid Cap        
SC         IC         SC      
                                 
2023         2023         2023      
                                 
                                 
 $  1,828           $  44,065           $  968       
  (3,565)           (41,863)           (1,277)      
  (1,737)           2,202            (309)      
                                 
                                 
  20,685            200,948            5,499       
  89,566            7,213            (3,517)      
  110,251            208,161            1,982       
                                 
  53,606            781,382            24,167       
                                 
                                 
 $  162,120           $  991,745           $  25,840       
                                 
                                 
Contrafund SC   Mid Cap IC   Mid Cap SC
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (1,737)    $  (2,446)    $  2,202     $  (3,432)    $  (309)    $  (648)
  110,251      76,222      208,161      503,441      1,982      30,466 
  53,606      (431,191)     781,382      (1,845,284)     24,167      (92,252)
                                 
  162,120      (357,415)     991,745      (1,345,275)     25,840      (62,434)
                                 
                                 
                          -                             -     7,220      32,392                              -                             -
  (11,776)     (1,384)     138,825      (303,254)     (40,618)     (52,063)
  (458,831)     (158,180)     (270,927)     (236,539)     (110,747)     (6,106)
  (143)     (181)     (693)     (888)     (38)     (46)
  (470,750)     (159,745)     (125,575)     (508,289)     (151,403)     (58,215)
                                 
  (308,630)     (517,160)     866,170      (1,853,564)     (125,563)     (120,649)
  821,803      1,338,963      6,925,712      8,779,276      325,679      446,328 
 $  513,173     $  821,803     $  7,791,882     $  6,925,712     $  200,116     $  325,679 
                                 
                                 

 

 

 FS-18 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       Fidelity 
               
      Strategic      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  473,601       
  Mortality and expense risk charge     (60,449)      
Net investment income(loss)     413,152       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (153,481)      
Net realized gain(loss)     (153,481)      
               
Change in unrealized appreciation/depreciation     656,243       
               
Net increase(decrease) in net assets resulting            
  from operations    $  915,914       
               
               
      Strategic
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  413,152     $  368,423 
  Net realized gain(loss)     (153,481)     (104,382)
  Net change in unrealized appreciation/depreciation      656,243      (1,815,583)
Net increase(decrease) in net assets resulting            
  from operations     915,914      (1,551,542)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     81,690      100,252 
  Subaccounts transfers (including fixed account), net     (163,719)     (3,747)
  Transfers for policyowner benefits and terminations     (1,009,991)     (932,783)
  Policyowner maintenance charges     (39,851)     (43,486)
Net increase(decrease) from policyowner transactions     (1,131,871)     (879,764)
               
Total increase(decrease) in net assets     (215,957)     (2,431,306)
Net assets at beginning of period     11,135,586      13,566,892 
Net assets at end of period    $  10,919,629     $  11,135,586 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-19 
 

 

 

 

 

 

 Fidelity     AIM 
                                 
Money Market         Dividend         Health      
                                 
2023         2023         2023      
                                 
                                 
 $  2,253,047           $  2,058           $                          -      
  (238,419)           (608)           (326)      
  2,014,628            1,450            (326)      
                                 
                                 
                          -           8,474                                    -      
                          -           (593)           (2,214)      
                          -           7,881            (2,214)      
                                 
                          -           (1,441)           2,757       
                                 
                                 
 $  2,014,628           $  7,890           $  217       
                                 
                                 
Money Market   Dividend   Health
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  2,014,628     $  804,732     $  1,450     $  1,395     $  (326)    $  (822)
                          -                             -     7,881      14,061      (2,214)     5,878 
                          -                             -     (1,441)     (18,034)     2,757      (37,020)
                                 
  2,014,628      804,732      7,890      (2,578)     217      (31,964)
                                 
                                 
  4,122,444      5,602,105                              -                             -                             -                             -
  (36,696,618)     67,471,979      (6,940)     7,865      (17,051)     (63,935)
  (14,797,376)     (15,701,132)     (4,795)     (2,983)     (1,224)     (37,757)
  (2,500)     (3,192)     (31)     (26)     (30)     (53)
  (47,374,050)     57,369,760      (11,766)     4,856      (18,305)     (101,745)
                                 
  (45,359,422)     58,174,492      (3,876)     2,278      (18,088)     (133,709)
  78,347,918      20,173,426      105,212      102,934      58,270      191,979 
 $  32,988,496     $  78,347,918     $  101,336     $  105,212     $  40,182     $  58,270 
                                 
                                 

 

 FS-20 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       AIM 
               
      Technology      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $                          -      
  Mortality and expense risk charge     (462)      
Net investment income(loss)     (462)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     51       
Net realized gain(loss)     51       
               
Change in unrealized appreciation/depreciation     19,387       
               
Net increase(decrease) in net assets resulting            
  from operations    $  18,976       
               
               
      Technology
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (462)    $  (424)
  Net realized gain(loss)     51      (2,995)
  Net change in unrealized appreciation/depreciation      19,387      (44,697)
Net increase(decrease) in net assets resulting            
  from operations     18,976      (48,116)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners                             -                             -
  Subaccounts transfers (including fixed account), net     125,309      (90,838)
  Transfers for policyowner benefits and terminations                             -                             -
  Policyowner maintenance charges     (45)     (16)
Net increase(decrease) from policyowner transactions     125,264      (90,854)
               
Total increase(decrease) in net assets     144,240      (138,970)
Net assets at beginning of period                             -     138,970 
Net assets at end of period    $  144,240     $                          -
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-21 
 

 

 

 

 

 

 AIM     Janus 
                                 
Intl. Growth         Franchise         Growth      
                                 
2023         2023         2023      
                                 
                                 
 $  1,427           $                          -          $  89       
  (3,863)           (666)           (360)      
  (2,436)           (666)           (271)      
                                 
                                 
  534            2,324                                    -      
  (5,589)           (34,155)           860       
  (5,055)           (31,831)           860       
                                 
  124,648            70,707            20,509       
                                 
                                 
 $  117,157           $  38,210           $  21,098       
                                 
                                 
Intl. Growth   Franchise   Growth
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (2,436)    $  8,088     $  (666)    $  (517)    $  (271)    $  66 
  (5,055)     97,833      (31,831)     (948)     860      10,635 
  124,648      (305,862)     70,707      (53,359)     20,509      (33,557)
                                 
  117,157      (199,941)     38,210      (54,824)     21,098      (22,856)
                                 
                                 
  825      16,422                              -                             -                             -                             -
  (5,773)     (140,361)     12,251      (334,484)     (42)                             -
  (31,028)     (344,181)     (3,291)     (4,513)     (2,593)     (2,284)
  (186)     (175)                             -     (1)     (33)     (33)
  (36,162)     (468,295)     8,960      (338,998)     (2,668)     (2,317)
                                 
  80,995      (668,236)     47,170      (393,822)     18,430      (25,173)
  687,139      1,355,375      70,893      464,715      50,660      75,833 
 $  768,134     $  687,139     $  118,063     $  70,893     $  69,090     $  50,660 
                                 
                                 

 

 FS-22 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       Neuberger Berman 
               
      Mid-Cap      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $                          -      
  Mortality and expense risk charge     (891)      
Net investment income(loss)     (891)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (79)      
Net realized gain(loss)     (79)      
               
Change in unrealized appreciation/depreciation     25,182       
               
Net increase(decrease) in net assets resulting            
  from operations    $  24,212       
               
               
      Mid-Cap
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (891)    $  (1,464)
  Net realized gain(loss)     (79)     41,747 
  Net change in unrealized appreciation/depreciation      25,182      (144,049)
Net increase(decrease) in net assets resulting            
  from operations     24,212      (103,766)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners                             -                             -
  Subaccounts transfers (including fixed account), net     (8)     91 
  Transfers for policyowner benefits and terminations     (464)     (134,303)
  Policyowner maintenance charges     (153)     (202)
Net increase(decrease) from policyowner transactions     (625)     (134,414)
               
Total increase(decrease) in net assets     23,587      (238,180)
Net assets at beginning of period     139,060      377,240 
Net assets at end of period    $  162,647     $  139,060 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-23 
 


 

 

 

 

Neuberger Berman
                                 
Bond         Equity         Regency      
                                 
2023         2023         2023      
                                 
                                 
 $  721           $  2,909           $  4,551       
  (86)           (5,155)           (2,171)      
  635            (2,246)           2,380       
                                 
                                 
                          -           13,729            22,966       
  (2,601)           27,144            (13,519)      
  (2,601)           40,873            9,447       
                                 
  2,365            189,430            35,655       
                                 
                                 
 $  399           $  228,057           $  47,482       
                                 
                                 
Bond   Equity   Regency
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  635     $  729     $  (2,246)    $  (1,098)    $  2,380     $  470 
  (2,601)     (870)     40,873      103,858      9,447      92,201 
  2,365      (1,483)     189,430      (335,108)     35,655      (157,957)
                                 
  399      (1,624)     228,057      (232,348)     47,482      (65,286)
                                 
                                 
                          -                             -     510      769      240      274 
  (15)     1      49,098      (41,270)     (72,806)     89,744 
  (19,289)     (9,352)     (232,440)     (19,096)     (25,859)     (112,483)
  (4)     (10)     (218)     (216)     (102)     (63)
  (19,308)     (9,361)     (183,050)     (59,813)     (98,527)     (22,528)
                                 
  (18,909)     (10,985)     45,007      (292,161)     (51,045)     (87,814)
  18,953      29,938      955,991      1,248,152      501,066      588,880 
 $  44     $  18,953     $  1,000,998     $  955,991     $  450,021     $  501,066 
                                 
                                 

 

 FS-24 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       Rydex 
               
      Nova      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $                          -      
  Mortality and expense risk charge     (4,369)      
Net investment income(loss)     (4,369)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (32,091)      
Net realized gain(loss)     (32,091)      
               
Change in unrealized appreciation/depreciation     232,946       
               
Net increase(decrease) in net assets resulting            
  from operations    $  196,486       
               
               
      Nova
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (4,369)    $  (1,814)
  Net realized gain(loss)     (32,091)     (22,713)
  Net change in unrealized appreciation/depreciation      232,946      (260,310)
Net increase(decrease) in net assets resulting            
  from operations     196,486      (284,837)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     3,960      4,240 
  Subaccounts transfers (including fixed account), net     531,972      (521,133)
  Transfers for policyowner benefits and terminations     (3,886)     (3,077)
  Policyowner maintenance charges     (210)     (146)
Net increase(decrease) from policyowner transactions     531,836      (520,116)
               
Total increase(decrease) in net assets     728,322      (804,953)
Net assets at beginning of period     486,927      1,291,880 
Net assets at end of period    $  1,215,249     $  486,927 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-25 
 

 

 

 

 

 

Rydex
             Precious           Inv.        
NASDAQ         Metals         S&P 500      
                                 
2023         2023         2023      
                                 
                                 
 $                          -          $  11,882           $  3,426       
  (14,371)           (16,625)           (1,379)      
  (14,371)           (4,743)           2,047       
                                 
                                 
                          -                                   -                                   -      
  78,398            223,758            (17,734)      
  78,398            223,758            (17,734)      
                                 
  990,405            272,370            (12,610)      
                                 
                                 
 $  1,054,432           $  491,385           $  (28,297)      
                                 
                                 
NASDAQ   Precious Metals   Inv. S&P 500
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (14,371)    $  (12,832)    $  (4,743)    $  (1,820)    $  2,047     $  (930)
  78,398      124,984      223,758      (197,038)     (17,734)     (30,467)
  990,405      (1,167,095)     272,370      (129,526)     (12,610)     47,750 
                                 
  1,054,432      (1,054,943)     491,385      (328,384)     (28,297)     16,353 
                                 
                                 
  930      174,132      14,606      128,468      194      254 
  663,013      (289,799)     (1,803,332)     299,716      (32,575)     35,544 
  (285,199)     (72,625)     (174,705)     (146,230)     (7,424)     (18,409)
  (488)     (457)     (734)     (801)     (253)     (204)
  378,256      (188,749)     (1,964,165)     281,153      (40,058)     17,185 
                                 
  1,432,688      (1,243,692)     (1,472,780)     (47,231)     (68,355)     33,538 
  1,936,559      3,180,251      3,532,346      3,579,577      174,753      141,215 
 $  3,369,247     $  1,936,559     $  2,059,566     $  3,532,346     $  106,398     $  174,753 
                                 
                                 

 

 FS-26 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       Rydex 
      Gov. Long      
      Bond      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  20,988       
  Mortality and expense risk charge     (4,277)      
Net investment income(loss)     16,711       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (33,996)      
Net realized gain(loss)     (33,996)      
               
Change in unrealized appreciation/depreciation     5,304       
               
Net increase(decrease) in net assets resulting            
  from operations    $  (11,981)      
               
               
      Gov. Long Bond
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  16,711     $  9,427 
  Net realized gain(loss)     (33,996)     (107,910)
  Net change in unrealized appreciation/depreciation      5,304      (550,997)
Net increase(decrease) in net assets resulting            
  from operations     (11,981)     (649,480)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     420      420 
  Subaccounts transfers (including fixed account), net     28,260      (385,018)
  Transfers for policyowner benefits and terminations     (9,728)     (11,801)
  Policyowner maintenance charges     (100)     (64)
Net increase(decrease) from policyowner transactions     18,852      (396,463)
               
Total increase(decrease) in net assets     6,871      (1,045,943)
Net assets at beginning of period     729,997      1,775,940 
Net assets at end of period    $  736,868     $  729,997 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-27 
 

 

 

 

 

 

   Rydex 
Inverse         Inv. Long                  
NASDAQ         Bond         Russell      
                                 
2023         2023         2023      
                                 
                                 
 $  481           $                          -          $                          -      
  (1,029)           (1,488)           (2,810)      
  (548)           (1,488)           (2,810)      
                                 
                                 
                          -                                   -                                   -      
  (43,039)           34,841            (20,326)      
  (43,039)           34,841            (20,326)      
                                 
  (22,665)           (43,378)           113,591       
                                 
                                 
 $  (66,252)          $  (10,025)          $  90,455       
                                 
                                 
Inverse NASDAQ   Inv. Long Bond   Russell
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (548)    $  (729)    $  (1,488)    $  (1,280)    $  (2,810)    $  (3,786)
  (43,039)     6,045      34,841      20,185      (20,326)     (8,887)
  (22,665)     18,587      (43,378)     58,306      113,591      (280,194)
                                 
  (66,252)     23,903      (10,025)     77,211      90,455      (292,867)
                                 
                                 
                          -     651                              -     25      4,318      4,140 
  26,612      143,838      (101,620)     190,669      (13,609)     (9,858)
  (6,512)     (18,433)     (30,915)     (32,980)     (142,194)     (43,339)
  (199)     (163)     (15)     (28)     (139)     (153)
  19,901      125,893      (132,550)     157,686      (151,624)     (49,210)
                                 
  (46,351)     149,796      (142,575)     234,897      (61,169)     (342,077)
  187,683      37,887      353,726      118,829      539,925      882,002 
 $  141,332     $  187,683     $  211,151     $  353,726     $  478,756     $  539,925 
                                 
                                 

 

 FS-28 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

      Rydex
       Sector       
      Rotation      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  1,234       
  Mortality and expense risk charge     (2,464)      
Net investment income(loss)     (1,230)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     10,183       
Net realized gain(loss)     10,183       
               
Change in unrealized appreciation/depreciation     44,331       
               
Net increase(decrease) in net assets resulting            
  from operations    $  53,284       
               
               
      Sector Rotation
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (1,230)    $  (246)
  Net realized gain(loss)     10,183      9,046 
  Net change in unrealized appreciation/depreciation      44,331      (108,710)
Net increase(decrease) in net assets resulting            
  from operations     53,284      (99,910)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     368      300 
  Subaccounts transfers (including fixed account), net     (20,801)     (66,660)
  Transfers for policyowner benefits and terminations     (78,385)     (21,116)
  Policyowner maintenance charges     (42)     (48)
Net increase(decrease) from policyowner transactions     (98,860)     (87,524)
               
Total increase(decrease) in net assets     (45,576)     (187,434)
Net assets at beginning of period     506,237      693,671 
Net assets at end of period    $  460,661     $  506,237 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-29 
 

 

 

 

 

 

 Third Avenue     Vanguard 
                                 
Value         Equity Index         Total Bond      
                                 
2023         2023         2023      
                                 
                                 
 $  51,864           $  1,138,622           $  1,707,926       
  (13,066)           (389,176)           (343,845)      
  38,798            749,446            1,364,081       
                                 
                                 
  144,293            2,521,788                                    -      
  53,243            1,114,930            (1,222,373)      
  197,536            3,636,718            (1,222,373)      
                                 
  173,925            11,650,054            3,162,072       
                                 
                                 
 $  410,259           $  16,036,218           $  3,303,780       
                                 
                                 
Value   Equity Index   Total Bond
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  38,798     $  16,866     $  749,446     $  416,758     $  1,364,081     $  1,423,510 
  197,536      43,119      3,636,718      14,554,477      (1,222,373)     (1,801,306)
  173,925      206,716      11,650,054      (31,209,939)     3,162,072      (12,115,620)
                                 
  410,259      266,701      16,036,218      (16,238,704)     3,303,780      (12,493,416)
                                 
                                 
  17,677      172,178      1,242,915      2,334,678      932,726      2,138,632 
  (76,062)     (48,784)     21,982,439      (26,423,820)     13,551,616      (16,456,170)
  (109,193)     (127,613)     (7,562,365)     (3,565,951)     (6,445,958)     (4,494,980)
  (342)     (354)     (111,804)     (119,684)     (93,962)     (102,238)
  (167,920)     (4,573)     15,551,185      (27,774,777)     7,944,422      (18,914,756)
                                 
  242,339      262,128      31,587,403      (44,013,481)     11,248,202      (31,408,172)
  2,114,274      1,852,146      50,257,711      94,271,192      68,113,564      99,521,736 
 $  2,356,613     $  2,114,274     $  81,845,114     $  50,257,711     $  79,361,766     $  68,113,564 
                                 
                                 

 

 FS-30 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       Vanguard 
               
      REIT Index      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  519,811       
  Mortality and expense risk charge     (113,612)      
Net investment income(loss)     406,199       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     980,657       
  Net realized gain(loss) on sale of fund shares     (296,208)      
Net realized gain(loss)     684,449       
               
Change in unrealized appreciation/depreciation     1,128,291       
               
Net increase(decrease) in net assets resulting            
  from operations    $  2,218,939       
               
               
      REIT Index
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  406,199     $  341,173 
  Net realized gain(loss)     684,449      1,339,503 
  Net change in unrealized appreciation/depreciation      1,128,291      (9,528,172)
Net increase(decrease) in net assets resulting            
  from operations     2,218,939      (7,847,496)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     186,533      408,205 
  Subaccounts transfers (including fixed account), net     71,966      (326,896)
  Transfers for policyowner benefits and terminations     (1,574,806)     (1,462,313)
  Policyowner maintenance charges     (43,562)     (47,317)
Net increase(decrease) from policyowner transactions     (1,359,869)     (1,428,321)
               
Total increase(decrease) in net assets     859,070      (9,275,817)
Net assets at beginning of period     21,279,837      30,555,654 
Net assets at end of period    $  22,138,907     $  21,279,837 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-31 
 

 

 

 

 

 

 Vanguard 
            Stock Market                  
Mid-Cap         Index         Conservative      
                                 
2023         2023         2023      
                                 
                                 
 $  471,924           $  509,455           $  129,522       
  (174,592)           (234,182)           (33,341)      
  297,332            275,273            96,181       
                                 
                                 
  592,224            2,482,949            167,641       
  77,843            558,533            (80,810)      
  670,067            3,041,482            86,831       
                                 
  3,605,837            6,870,173            595,800       
                                 
                                 
 $  4,573,236           $  10,186,928           $  778,812       
                                 
                                 
Mid-Cap   Stock Market Index   Conservative
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  297,332     $  220,098     $  275,273     $  355,134     $  96,181     $  129,520 
  670,067      4,313,929      3,041,482      3,995,115      86,831      185,648 
  3,605,837      (12,806,633)     6,870,173      (14,705,004)     595,800      (1,468,534)
                                 
  4,573,236      (8,272,606)     10,186,928      (10,354,755)     778,812      (1,153,366)
                                 
                                 
  288,291      602,481      1,118,193      1,326,044      99,092      366,226 
  (486,410)     (1,047,835)     (937,327)     (1,021,257)     528,325      498,242 
  (3,444,757)     (2,693,057)     (2,152,448)     (2,030,646)     (419,103)     (725,143)
  (30,739)     (33,385)     (1,442)     (1,684)     (518)     (506)
  (3,673,615)     (3,171,796)     (1,973,024)     (1,727,543)     207,796      138,819 
                                 
  899,621      (11,444,402)     8,213,904      (12,082,298)     986,608      (1,014,547)
  32,325,311      43,769,713      40,903,658      52,985,956      6,407,778      7,422,325 
 $  33,224,932     $  32,325,311     $  49,117,562     $  40,903,658     $  7,394,386     $  6,407,778 
                                 
                                 

 

 FS-32 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       Vanguard 
               
      Moderate      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  94,725       
  Mortality and expense risk charge     (23,825)      
Net investment income(loss)     70,900       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     150,977       
  Net realized gain(loss) on sale of fund shares     (21,698)      
Net realized gain(loss)     129,279       
               
Change in unrealized appreciation/depreciation     547,536       
               
Net increase(decrease) in net assets resulting            
  from operations    $  747,715       
               
               
      Moderate
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  70,900     $  65,809 
  Net realized gain(loss)     129,279      143,499 
  Net change in unrealized appreciation/depreciation      547,536      (800,964)
Net increase(decrease) in net assets resulting            
  from operations     747,715      (591,656)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     1,441,942      513,116 
  Subaccounts transfers (including fixed account), net     1,588,383      (157,029)
  Transfers for policyowner benefits and terminations     (495,776)     (67,646)
  Policyowner maintenance charges     (287)     (310)
Net increase(decrease) from policyowner transactions     2,534,262      288,131 
               
Total increase(decrease) in net assets     3,281,977      (303,525)
Net assets at beginning of period     3,529,120      3,832,645 
Net assets at end of period    $  6,811,097     $  3,529,120 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-33 
 

 

 

 

 

 

 Vanguard 
            International         Global      
Short-Term         Stock         Bond      
                                 
2023         2023         2023      
                                 
                                 
 $  488,515           $  228,289           $  38,939       
  (111,596)           (36,852)           (9,840)      
  376,919            191,437            29,099       
                                 
                                 
                          -           95,596            3,392       
  (241,256)           (79,176)           (58,104)      
  (241,256)           16,420            (54,712)      
                                 
  1,153,830            935,328            146,154       
                                 
                                 
 $  1,289,493           $  1,143,185           $  120,541       
                                 
                                 
Short-Term   International Stock   Global Bond
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  376,919     $  301,828     $  191,437     $  218,517     $  29,099     $  60,157 
  (241,256)     (176,232)     16,420      132,351      (54,712)     (58,830)
  1,153,830      (1,871,557)     935,328      (1,764,179)     146,154      (377,242)
                                 
  1,289,493      (1,745,961)     1,143,185      (1,413,311)     120,541      (375,915)
                                 
                                 
  745,543      864,281      316,139      633,496      16,275      361,200 
  (1,184,818)     (569,898)     (259,121)     121,106      89,369      (315,219)
  (1,681,310)     (2,904,884)     (472,286)     (412,167)     (218,281)     (260,266)
  (618)     (588)     (334)     (319)     (41)     (28)
  (2,121,203)     (2,611,089)     (415,602)     342,116      (112,678)     (214,313)
                                 
  (831,710)     (4,357,050)     727,583      (1,071,195)     7,863      (590,228)
  24,176,045      28,533,095      7,836,993      8,908,188      2,084,407      2,674,635 
 $  23,344,335     $  24,176,045     $  8,564,576     $  7,836,993     $  2,092,270     $  2,084,407 
                                 
                                 

 

 FS-34 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       Vanguard 
         Equity       
        Income      
                 
        2023      
  STATEMENTS OF OPERATIONS            
  Investment income:            
    Dividend distributions received    $  557,808       
    Mortality and expense risk charge     (112,696)      
  Net investment income(loss)     445,112       
                 
  Realized gain(loss) on investments:            
    Net realized gain distributions     1,090,563       
    Net realized gain(loss) on sale of fund shares     73,618       
  Net realized gain(loss)     1,164,181       
                 
  Change in unrealized appreciation/depreciation     (201,291)      
                 
  Net increase(decrease) in net assets resulting            
    from operations    $  1,408,002       
                 
                 
        Equity Income
                 
  STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
  Increase(decrease) in net assets from operations:            
    Net investment income(loss)    $  445,112     $  433,729 
    Net realized gain(loss)     1,164,181      2,747,963 
    Net change in unrealized appreciation/depreciation      (201,291)     (3,544,897)
  Net increase(decrease) in net assets resulting            
    from operations     1,408,002      (363,205)
                 
  Net increase(decrease) from policyowner transactions:            
    Payments received from policyowners     517,981      144,162 
    Subaccounts transfers (including fixed account), net     1,279,636      676,334 
    Transfers for policyowner benefits and terminations     (3,307,537)     (1,110,105)
    Policyowner maintenance charges     (1,179)     (1,327)
  Net increase(decrease) from policyowner transactions     (1,511,099)     (290,936)
                 
  Total increase(decrease) in net assets     (103,097)     (654,141)
  Net assets at beginning of period     22,359,207      23,013,348 
  Net assets at end of period    $  22,256,110     $  22,359,207 
                 
    The accompanying notes are an integral part of these financial statements.      

 

 FS-35 
 

 

 

 

 

 

 Vanguard 
High Yield                              
Bond         Growth         Balanced      
                                 
2023         2023         2023      
                                 
                                 
 $  705,239           $  48,649           $  468,786       
  (63,900)           (108,832)           (125,859)      
  641,339            (60,183)           342,927       
                                 
                                 
                          -                                   -           908,467       
  (469,550)           (336,111)           (206,918)      
  (469,550)           (336,111)           701,549       
                                 
  916,620            7,032,091            1,896,369       
                                 
                                 
 $  1,088,409           $  6,635,797           $  2,940,845       
                                 
                                 
High Yield Bond   Growth   Balanced
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  641,339     $  523,791     $  (60,183)    $  (109,917)    $  342,927     $  336,989 
  (469,550)     (310,472)     (336,111)     6,564,667      701,549      2,358,261 
  916,620      (1,609,117)     7,032,091      (15,889,134)     1,896,369      (6,860,664)
                                 
  1,088,409      (1,395,798)     6,635,797      (9,434,384)     2,940,845      (4,165,414)
                                 
                                 
  213,231      172,585      391,846      281,638      168,640      332,750 
  2,142,473      (3,016,770)     (355,784)     (1,210,498)     (685,452)     (792,488)
  (1,354,204)     (668,838)     (1,651,063)     (1,158,022)     (1,514,457)     (982,285)
  (27,249)     (30,078)     (1,099)     (1,265)     (958)     (1,028)
  974,251      (3,543,101)     (1,616,100)     (2,088,147)     (2,032,227)     (1,443,051)
                                 
  2,062,660      (4,938,899)     5,019,697      (11,522,531)     908,618      (5,608,465)
  10,309,385      15,248,284      17,159,987      28,682,518      22,773,079      28,381,544 
 $  12,372,045     $  10,309,385     $  22,179,684     $  17,159,987     $  23,681,697     $  22,773,079 
                                 
                                 

 

 FS-36 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       Vanguard 
               
      International      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  534,790       
  Mortality and expense risk charge     (178,388)      
Net investment income(loss)     356,402       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     1,153,167       
  Net realized gain(loss) on sale of fund shares     (749,999)      
Net realized gain(loss)     403,168       
               
Change in unrealized appreciation/depreciation     3,116,829       
               
Net increase(decrease) in net assets resulting            
  from operations    $  3,876,399       
               
               
      International
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  356,402     $  251,714 
  Net realized gain(loss)     403,168      6,586,405 
  Net change in unrealized appreciation/depreciation      3,116,829      (21,437,586)
Net increase(decrease) in net assets resulting            
  from operations     3,876,399      (14,599,467)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     394,099      863,516 
  Subaccounts transfers (including fixed account), net     3,840,433      (4,519,493)
  Transfers for policyowner benefits and terminations     (2,934,240)     (2,165,296)
  Policyowner maintenance charges     (1,931)     (1,967)
Net increase(decrease) from policyowner transactions     1,298,361      (5,823,240)
               
Total increase(decrease) in net assets     5,174,760      (20,422,707)
Net assets at beginning of period     28,756,863      49,179,570 
Net assets at end of period    $  33,931,623     $  28,756,863 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-37 
 

 

 

 

 

 

 Vanguard     Allspring 
            Small Company                  
Diversified         Growth         Discovery      
                                 
2023         2023         2023      
                                 
                                 
 $  223,891           $  59,522           $                          -      
  (89,893)           (83,851)           (2,819)      
  133,998            (24,329)           (2,819)      
                                 
                                 
  851,064                                    -                                   -      
  87,554            (266,444)           (54,270)      
  938,618            (266,444)           (54,270)      
                                 
  1,738,454            2,824,247            138,720       
                                 
                                 
 $  2,811,070           $  2,533,474           $  81,631       
                                 
                                 
Diversified   Small Company Growth   Discovery
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  133,998     $  94,384     $  (24,329)    $  (49,017)    $  (2,819)    $  (3,384)
  938,618      1,728,988      (266,444)     4,414,095      (54,270)     214,091 
  1,738,454      (4,038,646)     2,824,247      (9,421,382)     138,720      (546,062)
                                 
  2,811,070      (2,215,274)     2,533,474      (5,056,304)     81,631      (335,355)
                                 
                                 
  256,693      229,589      32,009      37,133                              -                             -
  (668,225)     (734,793)     (219,955)     (181,726)     (38,915)     (111,644)
  (1,240,024)     (1,082,592)     (987,974)     (1,311,284)     (92,371)                             -
  (34,140)     (36,995)     (14,431)     (15,728)     (108)     (115)
  (1,685,696)     (1,624,791)     (1,190,351)     (1,471,605)     (131,394)     (111,759)
                                 
  1,125,374      (3,840,065)     1,343,123      (6,527,909)     (49,763)     (447,114)
  15,303,267      19,143,332      13,863,420      20,391,329      499,396      946,510 
 $  16,428,641     $  15,303,267     $  15,206,543     $  13,863,420     $  449,633     $  499,396 
                                 
                                 

 

 FS-38 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

     Allspring 
               
      Opportunity      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $                          -      
  Mortality and expense risk charge     (961)      
Net investment income(loss)     (961)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions     13,782       
  Net realized gain(loss) on sale of fund shares     (325)      
Net realized gain(loss)     13,457       
               
Change in unrealized appreciation/depreciation     24,393       
               
Net increase(decrease) in net assets resulting            
  from operations    $  36,889       
               
               
      Opportunity
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (961)    $  (1,230)
  Net realized gain(loss)     13,457      54,704 
  Net change in unrealized appreciation/depreciation      24,393      (111,736)
Net increase(decrease) in net assets resulting            
  from operations     36,889      (58,262)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners                             -                             -
  Subaccounts transfers (including fixed account), net     32      (63,345)
  Transfers for policyowner benefits and terminations     (2,500)                             -
  Policyowner maintenance charges     (89)     (103)
Net increase(decrease) from policyowner transactions     (2,557)     (63,448)
               
Total increase(decrease) in net assets     34,332      (121,710)
Net assets at beginning of period     144,812      266,522 
Net assets at end of period    $  179,144     $  144,812 
               
  The accompanying notes are an integral part of these financial statements.      


 

 FS-39 
 

 

 

 

 ProFunds 
                                 
Bull         Europe         Mid-Cap      
                                 
2023         2023         2023      
                                 
                                 
 $                          -          $  1,289           $  43       
  (10,858)           (543)           (60)      
  (10,858)           746            (17)      
                                 
                                 
  227,607                                    -           889       
  (21,129)           360            (580)      
  206,478            360            309       
                                 
  48,991            8,377            232       
                                 
                                 
 $  244,611           $  9,483           $  524       
                                 
                                 
Bull   Europe   Mid-Cap
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (10,858)    $  (11,593)    $  746     $  332     $  (17)    $  (172)
  206,478      175,644      360      4,108      309      1,920 
  48,991      (474,011)     8,377      (14,145)     232      (6,128)
                                 
  244,611      (309,960)     9,483      (9,705)     524      (4,380)
                                 
                                 
                          -                             -                             -                             -                             -                             -
  (5,973)     7      (5,591)     (15,243)     (11,691)     (16,383)
  (314,772)     (4,285)                             -     (1,964)                             -     (1,337)
                          -                             -                             -                             -                             -                             -
  (320,745)     (4,278)     (5,591)     (17,207)     (11,691)     (17,720)
                                 
  (76,134)     (314,238)     3,892      (26,912)     (11,167)     (22,100)
  1,202,874      1,517,112      61,356      88,268      11,167      33,267 
 $  1,126,740     $  1,202,874     $  65,248     $  61,356     $                          -    $  11,167 
                                 
                                 

 

 FS-40 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

      ProFunds
               
      NASDAQ-100      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $                          -      
  Mortality and expense risk charge     (112)      
Net investment income(loss)     (112)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions     36       
  Net realized gain(loss) on sale of fund shares     3,273       
Net realized gain(loss)     3,309       
               
Change in unrealized appreciation/depreciation     1,644       
               
Net increase(decrease) in net assets resulting            
  from operations    $  4,841       
               
               
      NASDAQ-100
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (112)    $  (37)
  Net realized gain(loss)     3,309      (1,430)
  Net change in unrealized appreciation/depreciation      1,644      (676)
Net increase(decrease) in net assets resulting            
  from operations     4,841      (2,143)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners                             -                             -
  Subaccounts transfers (including fixed account), net     4,875      (12,383)
  Transfers for policyowner benefits and terminations     (4,600)                             -
  Policyowner maintenance charges                             -                             -
Net increase(decrease) from policyowner transactions     275      (12,383)
               
Total increase(decrease) in net assets     5,116      (14,526)
Net assets at beginning of period     6,460      20,986 
Net assets at end of period    $  11,576     $  6,460 
               
  The accompanying notes are an integral part of these financial statements.      


 

 

 FS-41 
 

 

 

 ProFunds 
            Small-Cap                  
Small-Cap         Value         Classic Dow      
                                 
2023         2023         2023      
                                 
                                 
 $                          -          $  3           $  6       
  (76)           (56)           (58)      
  (76)           (53)           (52)      
                                 
                                 
                          -           684                                    -      
  (373)           (1,252)           (1,042)      
  (373)           (568)           (1,042)      
                                 
  1,100            876            1,453       
                                 
                                 
 $  651           $  255           $  359       
                                 
                                 
Small-Cap   Small-Cap Value   Classic Dow
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (76)    $  (80)    $  (53)    $  (112)    $  (52)    $  (68)
  (373)     14      (568)     608      (1,042)     317 
  1,100      (920)     876      (2,797)     1,453      (391)
                                 
  651      (986)     255      (2,301)     359      (142)
                                 
                                 
                          -                             -                             -                             -                             -                             -
  (3,203)     2,425      (9,240)     (1,785)     (11,471)     7,146 
                          -                             -                             -     (645)                             -     (1,293)
                          -                             -                             -                             -                             -                             -
  (3,203)     2,425      (9,240)     (2,430)     (11,471)     5,853 
                                 
  (2,552)     1,439      (8,985)     (4,731)     (11,112)     5,711 
  7,176      5,737      8,985      13,716      11,112      5,401 
 $  4,624     $  7,176     $                          -    $  8,985     $                          -    $  11,112 
                                 
                                 

 

 FS-42 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

      ProFunds
               
      Bear      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  45       
  Mortality and expense risk charge     (132)      
Net investment income(loss)     (87)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (1,771)      
Net realized gain(loss)     (1,771)      
               
Change in unrealized appreciation/depreciation     (174)      
               
Net increase(decrease) in net assets resulting            
  from operations    $  (2,032)      
               
               
      Bear
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (87)    $  (115)
  Net realized gain(loss)     (1,771)     105 
  Net change in unrealized appreciation/depreciation      (174)     1,433 
Net increase(decrease) in net assets resulting            
  from operations     (2,032)     1,423 
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners                             -                             -
  Subaccounts transfers (including fixed account), net     (18,642)     17,161 
  Transfers for policyowner benefits and terminations     (38)                             -
  Policyowner maintenance charges                             -                             -
Net increase(decrease) from policyowner transactions     (18,680)     17,161 
               
Total increase(decrease) in net assets     (20,712)     18,584 
Net assets at beginning of period     21,793      3,209 
Net assets at end of period    $  1,081     $  21,793 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-43 
 

 

 

 

 

 

 ProFunds 
Short         Short Small-                  
NASDAQ         Cap         Short Dow      
                                 
2023         2023         2023      
                                 
                                 
 $                          -          $                          -          $                          -      
  (71)           (18)           (7)      
  (71)           (18)           (7)      
                                 
                                 
                          -                                   -                                   -      
  (3,402)           56            (18)      
  (3,402)           56            (18)      
                                 
  (1,509)           (189)           (51)      
                                 
                                 
 $  (4,982)          $  (151)          $  (76)      
                                 
                                 
Short NASDAQ   Short Small-Cap   Short Dow
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (71)    $  (81)    $  (18)    $  (25)    $  (7)    $  (8)
  (3,402)     162      56      1,230      (18)     (18)
  (1,509)     2,273      (189)     465      (51)     65 
                                 
  (4,982)     2,354      (151)     1,670      (76)     39 
                                 
                                 
                          -                             -                             -                             -                             -                             -
  (17,951)     18,493      (7,355)     735                              -                             -
                          -                             -                             -                             -                             -                             -
                          -                             -                             -                             -                             -                             -
  (17,951)     18,493      (7,355)     735                              -                             -
                                 
  (22,933)     20,847      (7,506)     2,405      (76)     39 
  22,933      2,086      7,506      5,101      854      815 
 $                          -    $  22,933     $                          -    $  7,506     $  778     $  854 
                                 
                                 

 

 

 FS-44 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

      ProFunds
               
      UltraMid      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $                          -      
  Mortality and expense risk charge     (278)      
Net investment income(loss)     (278)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (13,277)      
Net realized gain(loss)     (13,277)      
               
Change in unrealized appreciation/depreciation     11,672       
               
Net increase(decrease) in net assets resulting            
  from operations    $  (1,883)      
               
               
      UltraMid
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (278)    $  (181)
  Net realized gain(loss)     (13,277)     4,468 
  Net change in unrealized appreciation/depreciation      11,672      (12,728)
Net increase(decrease) in net assets resulting            
  from operations     (1,883)     (8,441)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners                             -                             -
  Subaccounts transfers (including fixed account), net     (13,027)     19,756 
  Transfers for policyowner benefits and terminations     (702)                             -
  Policyowner maintenance charges                             -                             -
Net increase(decrease) from policyowner transactions     (13,729)     19,756 
               
Total increase(decrease) in net assets     (15,612)     11,315 
Net assets at beginning of period     34,453      23,138 
Net assets at end of period    $  18,841     $  34,453 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-45 
 

 

 

 

 

 

 ProFunds 
                                 
UltraOTC         UltraSmall         UltraBull      
                                 
2023         2023         2023      
                                 
                                 
 $                          -          $                          -          $                          -      
  (10,554)           (110)           (930)      
  (10,554)           (110)           (930)      
                                 
                                 
                          -                                   -                                   -      
  (15,264)           (116)           (5,413)      
  (15,264)           (116)           (5,413)      
                                 
  867,167            2,728            46,622       
                                 
                                 
 $  841,349           $  2,502           $  40,279       
                                 
                                 
UltraOTC   UltraSmall   UltraBull
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (10,554)    $  (9,870)    $  (110)    $  (128)    $  (930)    $  (898)
  (15,264)     628,393      (116)     3,161      (5,413)     21,028 
  867,167      (1,779,146)     2,728      (12,320)     46,622      (75,072)
                                 
  841,349      (1,160,623)     2,502      (9,287)     40,279      (54,942)
                                 
                                 
                          -                             -                             -                             -                             -                             -
  19,455      471                              -                             -     25,508      (7,045)
  (1,070)                             -                             -                             -     (3,100)                             -
                          -                             -                             -                             -                             -                             -
  18,385      471                              -                             -     22,408      (7,045)
                                 
  859,734      (1,160,152)     2,502      (9,287)     62,687      (61,987)
  734,024      1,894,176      11,730      21,017      81,614      143,601 
 $  1,593,758     $  734,024     $  14,232     $  11,730     $  144,301     $  81,614 
                                 
                                 

 

 FS-46 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

      ProFunds
       U.S. Gov.       
      Plus      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  833       
  Mortality and expense risk charge     (111)      
Net investment income(loss)     722       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (2,148)      
Net realized gain(loss)     (2,148)      
               
Change in unrealized appreciation/depreciation     (123)      
               
Net increase(decrease) in net assets resulting            
  from operations    $  (1,549)      
               
               
      U.S. Gov. Plus
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  722     $  (110)
  Net realized gain(loss)     (2,148)     (2,912)
  Net change in unrealized appreciation/depreciation      (123)     (758)
Net increase(decrease) in net assets resulting            
  from operations     (1,549)     (3,780)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners                             -                             -
  Subaccounts transfers (including fixed account), net     9,761      8,792 
  Transfers for policyowner benefits and terminations     (32)                             -
  Policyowner maintenance charges                             -                             -
Net increase(decrease) from policyowner transactions     9,729      8,792 
               
Total increase(decrease) in net assets     8,180      5,012 
Net assets at beginning of period     6,753      1,741 
Net assets at end of period    $  14,933     $  6,753 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-47 
 

 

 

 

 

 

 ProFunds 
                         Precious       
Opportunity         Oil & Gas         Metals      
                                 
2023         2023         2023      
                                 
                                 
 $  2           $  2,012           $                          -      
  (166)           (774)           (569)      
  (164)           1,238            (569)      
                                 
                                 
                          -                                   -                                   -      
  7,843            6,333            (8,091)      
  7,843            6,333            (8,091)      
                                 
  (10,082)           (12,118)           10,032       
                                 
                                 
 $  (2,403)          $  (4,547)          $  1,372       
                                 
                                 
Opportunity   Oil & Gas   Precious Metals
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (164)    $  (441)    $  1,238     $  213     $  (569)    $  (747)
  7,843      12,312      6,333      30,028      (8,091)     (15,168)
  (10,082)     13,093      (12,118)     13,654      10,032      (5,081)
                                 
  (2,403)     24,964      (4,547)     43,895      1,372      (20,996)
                                 
                                 
                          -                             -                             -                             -                             -                             -
  (57,465)     (1,447)     (22,858)     (20,728)     (42,114)     13,295 
                          -     (8,408)     (810)     (4,333)     (4,888)     (1,596)
                          -                             -                             -                             -                             -                             -
  (57,465)     (9,855)     (23,668)     (25,061)     (47,002)     11,699 
                                 
  (59,868)     15,109      (28,215)     18,834      (45,630)     (9,297)
  59,868      44,759      105,723      86,889      91,138      100,435 
 $                          -    $  59,868     $  77,508     $  105,723     $  45,508     $  91,138 
                                 
                                 

 

 FS-48 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       ProFunds 
               
      Real Estate      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  967       
  Mortality and expense risk charge     (759)      
Net investment income(loss)     208       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     16,995       
  Net realized gain(loss) on sale of fund shares     (4,984)      
Net realized gain(loss)     12,011       
               
Change in unrealized appreciation/depreciation     (5,510)      
               
Net increase(decrease) in net assets resulting            
  from operations    $  6,709       
               
               
      Real Estate
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  208     $  (149)
  Net realized gain(loss)     12,011      7,849 
  Net change in unrealized appreciation/depreciation      (5,510)     (42,978)
Net increase(decrease) in net assets resulting            
  from operations     6,709      (35,278)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners                             -                             -
  Subaccounts transfers (including fixed account), net     (14,090)     6,087 
  Transfers for policyowner benefits and terminations                             -     (435)
  Policyowner maintenance charges                             -                             -
Net increase(decrease) from policyowner transactions     (14,090)     5,652 
               
Total increase(decrease) in net assets     (7,381)     (29,626)
Net assets at beginning of period     91,178      120,804 
Net assets at end of period    $  83,797     $  91,178 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-49 
 

 

 

 

 

 

 ProFunds     Pimco 
                                 
High Yield         Money Market         Commodity      
                                 
2023         2023         2023      
                                 
                                 
 $                          -          $  4,039           $  472,943       
  (70)           (851)           (15,614)      
  (70)           3,188            457,329       
                                 
                                 
                          -                                   -                                   -      
  (1,171)                                   -           (174,191)      
  (1,171)                                   -           (174,191)      
                                 
  1,785                                    -           (540,505)      
                                 
                                 
 $  544           $  3,188           $  (257,367)      
                                 
                                 
High Yield   Money Market   Commodity
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (70)    $  460     $  3,188     $  (100)    $  457,329     $  739,792 
  (1,171)     (129)                             -                             -     (174,191)     (94,857)
  1,785      (1,476)                             -                             -     (540,505)     (487,505)
                                 
  544      (1,145)     3,188      (100)     (257,367)     157,430 
                                 
                                 
                          -                             -                             -                             -     43,804      21,130 
  (18,583)     5,834      199,624      (25,135)     (97,279)     341,214 
                          -     (1,253)     (75,803)     (288,033)     (154,284)     (132,762)
                          -                             -                             -                             -     (114)     (184)
  (18,583)     4,581      123,821      (313,168)     (207,873)     229,398 
                                 
  (18,039)     3,436      127,009      (313,268)     (465,240)     386,828 
  18,039      14,603      35,645      348,913      3,160,892      2,774,064 
 $                          -    $  18,039     $  162,654     $  35,645     $  2,695,652     $  3,160,892 
                                 
                                 

 

 FS-50 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       Pimco 
               
      Total Return      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  378,073       
  Mortality and expense risk charge     (53,546)      
Net investment income(loss)     324,527       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (383,485)      
Net realized gain(loss)     (383,485)      
               
Change in unrealized appreciation/depreciation     661,425       
               
Net increase(decrease) in net assets resulting            
  from operations    $  602,467       
               
               
      Total Return
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  324,527     $  259,358 
  Net realized gain(loss)     (383,485)     (468,133)
  Net change in unrealized appreciation/depreciation      661,425      (1,809,803)
Net increase(decrease) in net assets resulting            
  from operations     602,467      (2,018,578)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     156,221      267,982 
  Subaccounts transfers (including fixed account), net     250,238      2,966 
  Transfers for policyowner benefits and terminations     (917,272)     (1,251,516)
  Policyowner maintenance charges     (402)     (478)
Net increase(decrease) from policyowner transactions     (511,215)     (981,046)
               
Total increase(decrease) in net assets     91,252      (2,999,624)
Net assets at beginning of period     11,074,144      14,073,768 
Net assets at end of period    $  11,165,396     $  11,074,144 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-51 
 

 

 

 

 

 

 Pimco     American Century 
                                 
Low Duration         Mid Cap         International      
                                 
2023         2023         2023      
                                 
                                 
 $  400           $  59,096           $  5,111       
  (66)           (13,567)           (2,601)      
  334            45,529            2,510       
                                 
                                 
                          -           307,656                                    -      
  (60)           (57,166)           (22,625)      
  (60)           250,490            (22,625)      
                                 
  198            (179,486)           89,271       
                                 
                                 
 $  472           $  116,533           $  69,156       
                                 
                                 
Low Duration   Mid Cap   International
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  334     $  122     $  45,529     $  57,184     $  2,510     $  8,093 
  (60)     (4)     250,490      495,825      (22,625)     159,279 
  198      (859)     (179,486)     (618,494)     89,271      (490,445)
                                 
  472      (741)     116,533      (65,485)     69,156      (323,073)
                                 
                                 
                          -                             -     3,600      82,886      20      220 
  1                              -     (382,311)     (225,821)     (803,082)     87,440 
  (770)     (24)     (266,111)     (184,248)     (51,249)     (53,084)
  (2)     (2)     (268)     (228)     (60)     (37)
  (771)     (26)     (645,090)     (327,411)     (854,371)     34,539 
                                 
  (299)     (767)     (528,557)     (392,896)     (785,215)     (288,534)
  10,998      11,765      2,964,788      3,357,684      1,015,423      1,303,957 
 $  10,699     $  10,998     $  2,436,231     $  2,964,788     $  230,208     $  1,015,423 
                                 
                                 

 

 FS-52 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       American Century 
               
      Inflation      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  46,808       
  Mortality and expense risk charge     (6,919)      
Net investment income(loss)     39,889       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (73,875)      
Net realized gain(loss)     (73,875)      
               
Change in unrealized appreciation/depreciation     83,293       
               
Net increase(decrease) in net assets resulting            
  from operations    $  49,307       
               
               
      Inflation
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  39,889     $  80,294 
  Net realized gain(loss)     (73,875)     (30,799)
  Net change in unrealized appreciation/depreciation      83,293      (286,442)
Net increase(decrease) in net assets resulting            
  from operations     49,307      (236,947)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     100,493      201,676 
  Subaccounts transfers (including fixed account), net     (275,525)     115,042 
  Transfers for policyowner benefits and terminations     (63,695)     (129,710)
  Policyowner maintenance charges     (44)     (63)
Net increase(decrease) from policyowner transactions     (238,771)     186,945 
               
Total increase(decrease) in net assets     (189,464)     (50,002)
Net assets at beginning of period     1,555,541      1,605,543 
Net assets at end of period    $  1,366,077     $  1,555,541 
               
  The accompanying notes are an integral part of these financial statements.      


 

 FS-53 
 

 

 

 

 American Funds 
                                 
IS Growth-Inc         IS Growth          Blue Chip       
                                 
2023         2023         2023      
                                 
                                 
 $  9,872           $  9,130           $  12,475       
  (2,825)           (5,630)           (3,094)      
  7,047            3,500            9,381       
                                 
                                 
  33,060            62,542            5,893       
  1,755            (42,942)           (8,648)      
  34,815            19,600            (2,755)      
                                 
  100,155            364,514            92,890       
                                 
                                 
 $  142,017           $  387,614           $  99,516       
                                 
                                 
IS Growth-Inc   IS Growth   Blue Chip
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  7,047     $  5,544     $  3,500     $  817     $  9,381     $  10,529 
  34,815      48,192      19,600      69,042      (2,755)     147,633 
  100,155      (146,559)     364,514      (403,530)     92,890      (211,862)
                                 
  142,017      (92,823)     387,614      (333,671)     99,516      (53,700)
                                 
                                 
  5,460      51,899      98,713      167,927      5,931      30,641 
  166,250      (1,237)     780,854      (84,038)     (151,583)     115,336 
  (16,888)     (15,270)     (53,258)     (92,817)     (4,815)     (485)
  (155)     (78)     (122)     (76)     (45)     (11)
  154,667      35,314      826,187      (9,004)     (150,512)     145,481 
                                 
  296,684      (57,509)     1,213,801      (342,675)     (50,996)     91,781 
  494,075      551,584      804,772      1,147,447      678,147      586,366 
 $  790,759     $  494,075     $  2,018,573     $  804,772     $  627,151     $  678,147 
                                 
                                 

 

 FS-54 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       American Funds 
               
      IS International      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  2,587       
  Mortality and expense risk charge     (743)      
Net investment income(loss)     1,844       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (287)      
Net realized gain(loss)     (287)      
               
Change in unrealized appreciation/depreciation     20,881       
               
Net increase(decrease) in net assets resulting            
  from operations    $  22,438       
               
               
      IS International
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  1,844     $  2,408 
  Net realized gain(loss)     (287)     6,711 
  Net change in unrealized appreciation/depreciation      20,881      (56,467)
Net increase(decrease) in net assets resulting            
  from operations     22,438      (47,348)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     2,133      32,043 
  Subaccounts transfers (including fixed account), net     10,647      (44,004)
  Transfers for policyowner benefits and terminations     (102)     (40,568)
  Policyowner maintenance charges     (25)     (1)
Net increase(decrease) from policyowner transactions     12,653      (52,530)
               
Total increase(decrease) in net assets     35,091      (99,878)
Net assets at beginning of period     140,369      240,247 
Net assets at end of period    $  175,460     $  140,369 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-55 
 

 

 

 

 

 

 American Funds     Franklin Templeton     MFS 
                                 
IS New World         Global Inc.         Utilities IC      
                                 
2023         2023         2023      
                                 
                                 
 $  17,879           $                          -          $  72,434       
  (4,965)           (26,203)           (11,685)      
  12,914            (26,203)           60,749       
                                 
                                 
                          -                                   -           112,080       
  (56,955)           (200,325)           (14,172)      
  (56,955)           (200,325)           97,908       
                                 
  207,073            316,887            (226,149)      
                                 
                                 
 $  163,032           $  90,359           $  (67,492)      
                                 
                                 
IS New World   Global Inc.   Utilities IC
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  12,914     $  13,314     $  (26,203)    $  (28,493)    $  60,749     $  43,579 
  (56,955)     68,429      (200,325)     (188,407)     97,908      152,240 
  207,073      (343,972)     316,887      (65,011)     (226,149)     (212,566)
                                 
  163,032      (262,229)     90,359      (281,911)     (67,492)     (16,747)
                                 
                                 
  11,296      11,132      226      27,567      14,609      44,471 
  (185,725)     417,157      (63,579)     191,773      63,110      54,098 
  (13,736)     (31,150)     (417,352)     (431,426)     (277,025)     (73,737)
  (62)     (64)     (10,690)     (11,416)     (183)     (180)
  (188,227)     397,075      (491,395)     (223,502)     (199,489)     24,652 
                                 
  (25,195)     134,846      (401,036)     (505,413)     (266,981)     7,905 
  1,137,319      1,002,473      4,940,150      5,445,563      2,242,697      2,234,792 
 $  1,112,124     $  1,137,319     $  4,539,114     $  4,940,150     $  1,975,716     $  2,242,697 
                                 
                                 

 

 FS-56 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

     MFS 
               
      Mid Cap      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $                          -      
  Mortality and expense risk charge     (3,573)      
Net investment income(loss)     (3,573)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions     9,338       
  Net realized gain(loss) on sale of fund shares     (56,344)      
Net realized gain(loss)     (47,006)      
               
Change in unrealized appreciation/depreciation     179,593       
               
Net increase(decrease) in net assets resulting            
  from operations    $  129,014       
               
               
      Mid Cap
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (3,573)    $  (3,468)
  Net realized gain(loss)     (47,006)     64,265 
  Net change in unrealized appreciation/depreciation      179,593      (312,155)
Net increase(decrease) in net assets resulting            
  from operations     129,014      (251,358)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     2,013      7,842 
  Subaccounts transfers (including fixed account), net     81,266      77,332 
  Transfers for policyowner benefits and terminations     (6,230)     (23,553)
  Policyowner maintenance charges     (24)     (20)
Net increase(decrease) from policyowner transactions     77,025      61,601 
               
Total increase(decrease) in net assets     206,039      (189,757)
Net assets at beginning of period     638,660      828,417 
Net assets at end of period    $  844,699     $  638,660 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-57 
 


 

 

 

 

 MFS     Summit 
                        EAFE      
  Research          S&P 500          Intl.      
                                 
  2023         2023         2023      
                                 
                                 
 $  35,500           $  62,859           $  27,351       
  (18,916)           (24,513)           (4,529)      
  16,584            38,346            22,822       
                                 
                                 
                          -           232,101                                    -      
  8,986            105,843            3,842       
  8,986            337,944            3,842       
                                 
  369,456            741,507            122,371       
                                 
                                 
 $  395,026           $  1,117,797           $  149,035       
                                 
                                 
  Research   S&P 500   EAFE Intl.
                                 
  2023   2022   2023   2022   2023   2022
                                 
 $  16,584     $  45,750     $  38,346     $  37,767     $  22,822     $  28,078 
  8,986      82,031      337,944      604,372      3,842      (1,159)
  369,456      (867,479)     741,507      (1,625,883)     122,371      (187,447)
                                 
  395,026      (739,698)     1,117,797      (983,744)     149,035      (160,528)
                                 
                                 
  23,948      13,610      84,111      568,897      23,501      87,401 
  59,398      230,485      (426,430)     666,128      (64,169)     (32,938)
  (406,303)     (206,337)     (464,098)     (895,041)     (7,417)     (73,101)
  (22,562)     (24,631)     (309)     (297)     (89)     (78)
  (345,519)     13,127      (806,726)     339,687      (48,174)     (18,716)
                                 
  49,507      (726,571)     311,071      (644,057)     100,861      (179,244)
  3,341,169      4,067,740      4,717,943      5,362,000      893,284      1,072,528 
 $  3,390,676     $  3,341,169     $  5,029,014     $  4,717,943     $  994,145     $  893,284 
                                 
                                 

 

 

 FS-58 
 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

     Summit 
      S&P      
      MidCap      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  5,798       
  Mortality and expense risk charge     (3,050)      
Net investment income(loss)     2,748       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     19,563       
  Net realized gain(loss) on sale of fund shares     15,529       
Net realized gain(loss)     35,092       
               
Change in unrealized appreciation/depreciation     31,743       
               
Net increase(decrease) in net assets resulting            
  from operations    $  69,583       
               
               
      S&P MidCap
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  2,748     $  2,099 
  Net realized gain(loss)     35,092      78,974 
  Net change in unrealized appreciation/depreciation      31,743      (178,537)
Net increase(decrease) in net assets resulting            
  from operations     69,583      (97,464)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners                             -                             -
  Subaccounts transfers (including fixed account), net     (157,192)     (55,471)
  Transfers for policyowner benefits and terminations     (50,796)     (3,135)
  Policyowner maintenance charges     (81)     (99)
Net increase(decrease) from policyowner transactions     (208,069)     (58,705)
               
Total increase(decrease) in net assets     (138,486)     (156,169)
Net assets at beginning of period     588,678      744,847 
Net assets at end of period    $  450,192     $  588,678 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-59 
 

 

 

 

 

 

 Summit 
             Mod.                   
Growth         Growth         Moderate      
                                 
2023         2023         2023      
                                 
                                 
 $  76,553           $  65,089           $  127,646       
  (34,284)           (28,580)           (52,466)      
  42,269            36,509            75,180       
                                 
                                 
  471,752            292,254            477,842       
  57,831            46,158            65,120       
  529,583            338,412            542,962       
                                 
  250,804            224,063            324,559       
                                 
                                 
 $  822,656           $  598,984           $  942,701       
                                 
                                 
Growth   Mod. Growth   Moderate
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  42,269     $  23,741     $  36,509     $  20,168     $  75,180     $  46,899 
  529,583      244,850      338,412      275,170      542,962      504,806 
  250,804      (1,397,252)     224,063      (1,246,308)     324,559      (2,262,752)
                                 
  822,656      (1,128,661)     598,984      (950,970)     942,701      (1,711,047)
                                 
                                 
  35,000      21,000      18,462      24,462      47,237      26,560 
  (6,648)     (254,740)     7,469      (449,520)     (10,004)     (611,789)
  (271,221)     (370,192)     (229,492)     (184,087)     (937,874)     (837,510)
  (80,495)     (81,799)     (72,754)     (73,217)     (95,844)     (100,606)
  (323,364)     (685,731)     (276,315)     (682,362)     (996,485)     (1,523,345)
                                 
  499,292      (1,814,392)     322,669      (1,633,332)     (53,784)     (3,234,392)
  5,668,051      7,482,443      4,713,041      6,346,373      8,963,628      12,198,020 
 $  6,167,343     $  5,668,051     $  5,035,710     $  4,713,041     $  8,909,844     $  8,963,628 
                                 
                                 

 FS-60 
 


 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

        Summit
      Russell      
      Small Cap      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  47,048       
  Mortality and expense risk charge     (26,443)      
Net investment income(loss)     20,605       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     2,997       
  Net realized gain(loss) on sale of fund shares     (108,408)      
Net realized gain(loss)     (105,411)      
               
Change in unrealized appreciation/depreciation     890,368       
               
Net increase(decrease) in net assets resulting            
  from operations    $  805,562       
               
               
      Russell Small Cap
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  20,605     $  18,265 
  Net realized gain(loss)     (105,411)     514,520 
  Net change in unrealized appreciation/depreciation      890,368      (1,977,678)
Net increase(decrease) in net assets resulting            
  from operations     805,562      (1,444,893)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     49,736      129,652 
  Subaccounts transfers (including fixed account), net     87,686      (14,904)
  Transfers for policyowner benefits and terminations     (402,318)     (337,041)
  Policyowner maintenance charges     (266)     (311)
Net increase(decrease) from policyowner transactions     (265,162)     (222,604)
               
Total increase(decrease) in net assets     540,400      (1,667,497)
Net assets at beginning of period     5,161,971      6,829,468 
Net assets at end of period    $  5,702,371     $  5,161,971 
               
  The accompanying notes are an integral part of these financial statements.      

 

 FS-61 
 

 

 

 

 

 

 T. Rowe     Morgan Stanley     DFA 
             Emerging                   
Blue Chip         Markets         Bond      
                                 
2023         2023         2023      
                                 
                                 
 $                          -          $  154,246           $  648,402       
  (58,355)           (51,256)           (80,701)      
  (58,355)           102,990            567,701       
                                 
                                 
                          -           166,966                                    -      
  258,018            (254,789)           (181,459)      
  258,018            (87,823)           (181,459)      
                                 
  3,977,528            1,037,514            384,453       
                                 
                                 
 $  4,177,191           $  1,052,681           $  770,695       
                                 
                                 
Blue Chip   Emerging Markets   Bond
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (58,355)    $  (62,534)    $  102,990     $  (10,777)    $  567,701     $  182,449 
  258,018      891,765      (87,823)     900,109      (181,459)     (702,088)
  3,977,528      (6,978,051)     1,037,514      (4,186,809)     384,453      (1,050,717)
                                 
  4,177,191      (6,148,820)     1,052,681      (3,297,477)     770,695      (1,570,356)
                                 
                                 
  35,642      137,601      179,582      189,677      654,072      548,352 
  (727,827)     (987,120)     60,876      236,642      3,382,745      (6,144,185)
  (820,211)     (859,238)     (716,423)     (613,275)     (1,751,723)     (2,103,202)
  (23,944)     (25,017)     (13,759)     (14,920)     (276)     (370)
  (1,536,340)     (1,733,774)     (489,724)     (201,876)     2,284,818      (7,699,405)
                                 
  2,640,851      (7,882,594)     562,957      (3,499,353)     3,055,513      (9,269,761)
  9,072,353      16,954,947      9,458,657      12,958,010      16,447,731      25,717,492 
 $  11,713,204     $  9,072,353     $  10,021,614     $  9,458,657     $  19,503,244     $  16,447,731 
                                 
                                 


 

 FS-62 
 

 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       DFA 
               
      Small      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  435,363       
  Mortality and expense risk charge     (62,119)      
Net investment income(loss)     373,244       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (200,369)      
Net realized gain(loss)     (200,369)      
               
Change in unrealized appreciation/depreciation     1,425,313       
               
Net increase(decrease) in net assets resulting            
  from operations    $  1,598,188       
               
               
      Small
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  373,244     $  246,119 
  Net realized gain(loss)     (200,369)     129,250 
  Net change in unrealized appreciation/depreciation      1,425,313      (2,772,744)
Net increase(decrease) in net assets resulting            
  from operations     1,598,188      (2,397,375)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     3,354,195      453,887 
  Subaccounts transfers (including fixed account), net     (2,723,033)     468,895 
  Transfers for policyowner benefits and terminations     (1,229,107)     (493,712)
  Policyowner maintenance charges     (155)     (155)
Net increase(decrease) from policyowner transactions     (598,100)     428,915 
               
Total increase(decrease) in net assets     1,000,088      (1,968,460)
Net assets at beginning of period     11,263,156      13,231,616 
Net assets at end of period    $  12,263,244     $  11,263,156 
               
  The accompanying notes are an integral part of these financial statements.      


 

 FS-63 
 

 

 

 

 DFA 
                                 
Value         Fixed         Large      
                                 
2023         2023         2023      
                                 
                                 
 $  1,061,056           $  574,468           $  529,835       
  (117,765)           (76,896)           (112,709)      
  943,291            497,572            417,126       
                                 
                                 
  211,750                                    -           322,919       
  503,637            2,846            595,631       
  715,387            2,846            918,550       
                                 
  1,984,940            179,427            1,135,623       
                                 
                                 
 $  3,643,618           $  679,845           $  2,471,299       
                                 
                                 
Value   Fixed   Large
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  943,291     $  761,691     $  497,572     $  120,322     $  417,126     $  401,933 
  715,387      555,000      2,846      (53,921)     918,550      911,231 
  1,984,940      (2,184,562)     179,427      (325,492)     1,135,623      (2,628,531)
                                 
  3,643,618      (867,871)     679,845      (259,091)     2,471,299      (1,315,367)
                                 
                                 
  817,234      688,260      859,940      938,644      2,739,012      1,631,163 
  (786,521)     (1,358,679)     (561,280)     292,673      (844,318)     (1,628,756)
  (2,340,255)     (1,203,978)     (1,506,481)     (1,082,137)     (2,499,184)     (1,253,317)
  (47,590)     (51,914)     (14,089)     (15,152)     (461)     (480)
  (2,357,132)     (1,926,311)     (1,221,910)     134,028      (604,951)     (1,251,390)
                                 
  1,286,486      (2,794,182)     (542,065)     (125,063)     1,866,348      (2,566,757)
  22,086,807      24,880,989      15,594,991      15,720,054      22,698,898      25,265,655 
 $  23,373,293     $  22,086,807     $  15,052,926     $  15,594,991     $  24,565,246     $  22,698,898 
                                 
                                 

 FS-64 
 


 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

FOR THE PERIODS ENDED DECEMBER 31

 

 

       DFA 
               
      Targeted      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  264,853       
  Mortality and expense risk charge     (77,838)      
Net investment income(loss)     187,015       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     1,178,545       
  Net realized gain(loss) on sale of fund shares     233,660       
Net realized gain(loss)     1,412,205       
               
Change in unrealized appreciation/depreciation     1,564,719       
               
Net increase(decrease) in net assets resulting            
  from operations    $  3,163,939       
               
               
      Targeted
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  187,015     $  136,945 
  Net realized gain(loss)     1,412,205      1,812,845 
  Net change in unrealized appreciation/depreciation      1,564,719      (2,774,319)
Net increase(decrease) in net assets resulting            
  from operations     3,163,939      (824,529)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     970,013      720,923 
  Subaccounts transfers (including fixed account), net     1,281,557      (1,568,491)
  Transfers for policyowner benefits and terminations     (752,883)     (1,002,683)
  Policyowner maintenance charges     (186)     (160)
Net increase(decrease) from policyowner transactions     1,498,501      (1,850,411)
               
Total increase(decrease) in net assets     4,662,440      (2,674,940)
Net assets at beginning of period     16,025,375      18,700,315 
Net assets at end of period    $  20,687,815     $  16,025,375 
               
  The accompanying notes are an integral part of these financial statements.      


 

 

 FS-65 
 

 

 

 DFA 
                     
Global         Equity      
                     
2023         2023      
                     
                     
 $  308,193           $  80,115       
  (51,886)           (12,213)      
  256,307            67,902       
                     
                     
  125,416            79,902       
  90,370            (9,861)      
  215,786            70,041       
                     
  1,096,100            418,087       
                     
                     
 $  1,568,193           $  556,030       
                     
                     
Global   Equity
                     
2023   2022   2023   2022
                     
 $  256,307     $  116,612     $  67,902     $  29,251 
  215,786      236,941      70,041      66,631 
  1,096,100      (1,929,353)     418,087      (435,369)
                     
  1,568,193      (1,575,800)     556,030      (339,487)
                     
                     
  296,763      395,683      1,607,781      322,561 
  (37,825)     37,351      (162,665)     (262,966)
  (949,836)     (1,220,502)     (179,359)     (110,365)
  (361)     (319)     (110)     (118)
  (691,259)     (787,787)     1,265,647      (50,888)
                     
  876,934      (2,363,587)     1,821,677      (390,375)
  11,368,705      13,732,292      2,149,931      2,540,306 
 $  12,245,639     $  11,368,705     $  3,971,608     $  2,149,931 
                     
                     

 

 FS-66 
 

 

AMERITAS LIFE INSURANCE CORP.

SEPARATE ACCOUNT LLVA

NOTES TO FINANCIAL STATEMENTS

FOR THE PERIODS ENDED DECEMBER 31, 2023 AND 2022

 

1. ORGANIZATION

 

Ameritas Life Insurance Corp. Separate Account LLVA (the "Account") began operations during 1997. It operates as a separate investment account within Ameritas Life Insurance Corp. (the “Company”), a Nebraska domiciled company. The statements of operations and changes in net assets, financial highlights, and the related notes for each of the subaccounts listed below, are presented for the periods noted in the financial statements and notes, except for those subaccounts with commencement dates occurring during the period as referenced below.  For those subaccounts with commencement dates during the respective period, the financial statements and the notes are presented from the commencement date forward. The assets of the Account are held by the Company and are segregated from all of the Company’s other assets and are used only to support the variable annuity products issued by the Company.

 

Management believes these financial statements should be read in conjunction with the policyowner statements and policy and fund prospectuses.

 

The Account is registered under the Investment Company Act of 1940, as amended, as a unit investment trust. The Account is made up of variable investment options called subaccounts for which accumulation units are separately maintained. Each subaccount corresponds to a single underlying non-publicly traded portfolio issued through a fund series. At December 31, 2023 there are one hundred and eleven subaccounts available within the Account listed as follows:

 

                     
Calvert Research and Management   Fidelity Management & Research
(Advisor)   Company LLC,
  Calvert (Fund Series short cite)     Fidelity, continued
    *Balanced (Subaccount short cite)       *Mid Cap IC
    *Mid Cap       *Mid Cap SC
                *Strategic
DWS Investment Management Americas,       *Money Market
Inc.          
  Scudder   Invesco Advisers, Inc.
    *Small Cap     AIM
    *Small Mid Value       *Dividend
    *Thematic       *Health
    *Growth       *Technology
            *Intl. Growth
Fidelity Management & Research       *Franchise
Company LLC    
  Fidelity   Janus Henderson Investors US LLC
    *Overseas IC     Janus
    *Inv. Grade Bond IC       *Growth
    *Equity Income IC        
    *Growth IC   Neuberger Berman Investment Advisers LLC
    *High Income IC     Neuberger Berman
    *High Income SC       *Mid-Cap
    *Contrafund IC       *Bond
    *Contrafund SC       *Equity
              (Commenced April 29, 2019)
            *Regency
           

 

 FS-67 
 

1. ORGANIZATION, continued

 

                     
Guggenheim Investment   Schroder Investment Management North
  Rydex   America Inc. and Baillie Gifford
    *Nova   Overseas Ltd.
    *NASDAQ     Vanguard
    *Precious Metals       *International
    *Inv. S&P 500            
    *Gov. Long Bond   Hotchkis and Wiley Capital Management, LLC
    *Inverse NASDAQ   and Lazard Asset Management LLC
    *Inv. Long Bond       Vanguard
    *Russell         *Diversified
    *Sector Rotation            
        The Vanguard Group, Inc. and
Third Avenue Management LLC   ArrowMark Colorado Holdings, LLC
  Third Avenue     Vanguard
    *Value       *Small Company Growth
                 
The Vanguard Group, Inc.   Allspring Funds Management, LLC
  Vanguard     Allspring
    *Equity Index       *Discovery
    *Total Bond       *Opportunity
    *REIT Index        
    *Mid-Cap   ProFund Advisors LLC
    *Stock Market Index     ProFunds
    *Conservative       *Bull
    *Moderate       *Europe
    *Short-Term       *Mid-Cap
    *International Stock       *NASDAQ-100
         (Commenced June 28, 2019)       *Small-Cap
    *Global Bond       *Small-Cap Value
         (Commenced May 31, 2019)       *Classic Dow
                *Bear
Wellington Management Company, LLP       *Short NASDAQ
and The Vanguard Group, Inc.       *Short Small-Cap
  Vanguard       *Short Dow
    *Equity Income       *UltraMid
    *High Yield Bond       *UltraOTC
                *UltraSmall
Wellington Management Company, LLP       *UltraBull
  Vanguard       *U.S. Gov. Plus
    *Growth       *Opportunity
    *Balanced        
         

 

 

 FS-68 
 

1. ORGANIZATION, continued

 

ProFund Advisors LLC, continued   Massachusetts Financial Services
  ProFunds, continued   Company
    *Oil & Gas     MFS
    *Precious Metals       *Utilities IC
    *Real Estate       *Mid Cap
    *High Yield            (Commenced May 16, 2019)
         (Commenced April 23, 2021)       *Research
    *Money Market            
        Calvert Research and Management
Pacific Investment Management   (See Note 3)
Company LLC     Summit
  Pimco       *S&P 500
    *Commodity       *EAFE Intl.
    *Total Return       *S&P MidCap
    *Low Duration       *Growth
            *Mod. Growth
American Century Investment       *Moderate
Management, Inc.       *Russell Small Cap
  American Century        
    *Mid Cap   T. Rowe Price Associates, Inc.
    *International     T. Rowe
    *Inflation       *Blue Chip
         (Commenced May 7, 2019)      
            Morgan Stanley Investment
Capital Research and Management   Management Inc.
Company (SM)     Morgan Stanley
  American Funds       *Emerging Markets
    *IS Growth-Inc      
         (Commenced July 1, 2019)   Dimensional Fund Advisors LP
    *IS Growth     DFA
         (Commenced July 1, 2019)       *Bond
    *Blue Chip       *Small
         (Commenced May 9, 2019)       *Value
    *IS International       *Fixed
         (Commenced July 1, 2019)       *Large
    *IS New World       *Targeted
         (Commenced June 2, 2020)       *Global
                *Equity
Franklin Advisers, Inc.            (Commenced June 26, 2019)
  Franklin Templeton        
    *Global Inc.            

  

 

 

Note: The above chart references the fund series and subaccount short cites from the Statements of Net Assets.

 FS-69 
 

2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

BASIS OF ACCOUNTING

The financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for variable annuity separate accounts registered as unit investment trusts.

 

USE OF ESTIMATES

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

 

INVESTMENTS

The assets of the subaccounts are carried at the net asset value of the underlying portfolios, adjusted for the accrual of dividends. The value of the policyowners’ units corresponds to the investment in the underlying subaccounts. The availability of investment portfolio and subaccount options may vary between products. Share transactions and security transactions are accounted for on a trade date basis.

 

Income from dividends and gains from realized gain distributions are recorded on the ex-distribution date. Realized gains and losses on the sales of investments represent the difference between the proceeds from sales of investments by the subaccounts and the cost of such shares, which is determined on a weighted average cost basis.

 

FAIR VALUE MEASUREMENTS

The accounting guidance on fair value measurements establishes a framework for measuring fair value and expands disclosures about fair value measurements. It also defines fair value as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. The fair value measurement guidance applies to all assets and liabilities that are measured and reported on a fair value basis and enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. Each asset and liability carried at fair value is classified into one of the following categories:

 

·Level 1 – Quoted market prices in active markets for identical assets or liabilities.
·Level 2 – Observable market based inputs or unobservable inputs that are corroborated by market data.
·Level 3 – Unobservable inputs that are not corroborated by market data.

 

Each subaccount invests in shares of open-ended mutual funds, which calculate a daily net asset value based on the value of the underlying securities in its portfolios. As a result, and as required by law, pricing information is provided on an ongoing basis. Shares of open end mutual funds are purchased and redeemed at their quoted daily net asset values as reported by the fund companies at the close of each business day. On that basis, the fair value measurements of all shares held by the Account are reported as Level 1 assets.

 

 

 

 FS-70 
 

2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

 

FEDERAL AND STATE INCOME TAXES

The operations of the Account form a part of and are taxed with the operations of the Company. The Company is taxed as a life insurance company under Subchapter L of the Internal Revenue Code. Under existing federal income tax law, separate account investment income and capital gains are not taxed to the extent they are applied to increase reserves under a contract issued in connection with the Account. Investment income and realized capital gains and losses on assets of the Account are automatically applied to increase or decrease reserves under the contract. Accordingly, no provision for federal income taxes or unrecognized tax benefits are reflected in these financial statements.

 

3. RELATED PARTIES

 

Ameritas Investment Partners, Inc., an affiliate of the Company, provides sub-advisor services to certain portfolios of the Summit funds for a fee. These fees are reflected in the daily value of the underlying portfolio share price. The fee is computed separately for each underlying portfolio on daily average net assets, at an annual rate, as of December 31, 2023 and 2022, as follows:

 

 

 

       

Sub-Advisor

Fee %

Summit:    
  S&P 500   .050
  S&P MidCap   .050
  Growth   .050
  Mod. Growth   .050
  Moderate   .050
  Russell Small Cap   .050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 FS-71 
 

4. PURCHASES AND SALES OF INVESTMENTS

 

The cost of purchases and proceeds from sales of investments in the subaccounts for the period ended

December 31, 2023 were as follows:

 

           Purchases       Sales 
Calvert:            
  Balanced   $ 20,384    $  102,191
  Mid Cap      664     30,244
                 
Scudder:            
  Small Cap      8,199     106,430
  Small Mid Value     293,381     444,801
  Thematic     15,930     60,483
  Growth     164,980     62,243
                 
Fidelity:            
  Overseas IC     489,909     498,857
  Inv. Grade Bond IC     1,913,168     3,222,705
  Equity Income IC     192,835     308,189
  Growth IC     609,650     623,886
  High Income IC     630,230     474,682
  High Income SC     1,504     3,669
  Contrafund IC     1,240,931     1,887,020
  Contrafund SC     21,343     473,144
  Mid Cap IC     634,092     556,516
  Mid Cap SC     6,459     152,671
  Strategic     729,506     1,448,225
  Money Market     32,879,789     78,239,211
                 
AIM:              
  Dividend     10,627     12,469
  Health                                 -     18,631
  Technology      125,623     821
  Intl. Growth     10,294     48,358
  Franchise     341,813     331,195
                 
Janus:            
  Growth     87     3,026
                 
Neuberger Berman:            
  Mid-Cap                                -     1,516
  Bond      720     19,393
  Equity      69,457     241,025
  Regency     33,491     106,672
                 

 

 FS-72 
 

4. PURCHASES AND SALES OF INVESTMENTS, continued

 

           Purchases       Sales 
Rydex:            
  Nova    $ 1,205,345   $ 677,878
  NASDAQ     871,453     507,569
  Precious Metals      6,824,922     8,793,830
  Inv. S&P 500     1,171,300     1,209,311
  Gov. Long Bond      102,005     66,441
  Inverse NASDAQ     890,560     871,207
  Inv. Long Bond     203,608     337,646
  Russell     21,715     176,149
  Sector Rotation     27,835     127,924
                 
Third Avenue:            
  Value     234,033     218,862
                 
Vanguard:            
  Equity Index     33,614,832     14,792,412
  Total Bond      16,542,018     7,233,514
  REIT Index     2,410,144     2,383,158
  Mid-Cap     1,896,560     4,680,619
  Stock Market Index     4,852,742     4,067,544
  Conservative     1,223,326     751,708
  Moderate     3,363,694     607,555
  Short-Term     2,044,157     3,788,441
  International Stock     892,067     1,020,636
  Global Bond     244,326     324,513
  Equity Income     4,817,218     4,792,642
  High Yield Bond     6,391,083     4,775,493
  Growth     1,242,154     2,918,437
  Balanced     3,162,641     3,943,474
  International     8,568,242     5,760,312
  Diversified      1,510,604     2,211,237
  Small Company Growth     130,143     1,344,824
                 
Wells Fargo:            
  Discovery                                -     134,213
  Opportunity     13,779     3,514
                 
ProFunds:            
  Bull     239,125     343,122
  Europe     1,287     6,132
  Mid-Cap     7,493     18,312
  NASDAQ-100     33,589     33,391
  Small-Cap     11,151     14,429
  Small-Cap Value     7,650     16,260
  Classic Dow     6,775     18,299
  Bear     11,463     30,230
  Short NASDAQ                                -     18,022
  Short Small-Cap     4,519     11,893

 

 FS-73 
 

4. PURCHASES AND SALES OF INVESTMENTS, continued

 

           Purchases       Sales 
ProFunds, continued:            
  Short Dow   $                            -   $ 7
  UltraMid     34,955     48,963
  UltraOTC     46,452     38,621
  UltraSmall                                -     109
  UltraBull     47,663     26,184
  U.S. Gov. Plus     23,607     13,155
  Opportunity     2     57,631
  Oil & Gas     38,662     61,092
  Precious Metals     64,986     112,556
  Real Estate     17,947     14,835
  High Yield                                -     18,653
  Money Market     384,306     257,297
                 
Pimco:            
  Commodity     671,355     421,899
  Total Return     1,968,097     2,154,784
  Low Duration     395     832
                 
American Century:            
  Mid Cap     444,347     736,251
  International     229,813     1,081,674
  Inflation     388,379     587,261
                 
American Funds:            
  IS Growth-Inc     272,788     78,014
  IS Growth     1,179,839     287,611
  Blue Chip     35,701     170,941
  IS International     16,015     1,518
  IS New World     85,812     261,125
                 
Franklin Templeton:            
  Global Inc.     95,243     612,841
                 
MFS:            
  Utilities IC     474,035     500,694
  Mid Cap     269,252     186,462
  Research     559,766     888,700
                 
Summit:            
  S&P 500     791,120     1,327,399
  EAFE Intl.     86,211     111,563
  S&P MidCap     25,352     211,111
  Growth     572,367     381,709
  Mod. Growth     371,191     318,743
  Moderate     693,925     1,137,387
  Russell Small Cap     689,943     931,502

 

 FS-74 
 

4. PURCHASES AND SALES OF INVESTMENTS, continued

 

           Purchases       Sales 
T. Rowe:            
  Blue Chip   $ 244,591   $ 1,839,287
                 
Morgan Stanley:            
  Emerging Markets     955,735     1,175,502
                 
DFA:            
  Bond     5,884,658     3,032,139
  Small      4,028,435     4,253,291
  Value     3,081,335     4,283,426
  Fixed     2,107,303     2,831,641
  Large      3,998,452     3,863,358
  Targeted     4,792,539     1,928,477
  Global     760,839     1,070,375
  Equity     1,763,527     350,076

 

 

 

5. FINANCIAL HIGHLIGHTS

 

The unit value, units, net assets, investment income ratio (“Inv. Income Ratio”), expense ratio and total return (certain of which are defined below) are included in the following table (amounts have been rounded). Total returns, unit values and expense ratios in this table may not be applicable to all policies.

 

Inv. Income Ratio – The Inv. Income Ratio represents the dividend distributions received divided by average daily net assets. This ratio excludes the mortality and expense risk charge and is affected by the timing of the declaration of dividends by the underlying fund portfolio.

 

Expense Ratio – The Expense Ratio represents the annualized contract expenses of the subccounts for the period indicated and includes only those expenses that are charged through a reduction of the unit value. Included in this category are mortality and expense charges. During the year ended December 31, 2023, these fees range between .45 percent and .90 percent (annualized) of net assets, depending on the product selected. Expenses of the underlying fund portfolios and charges made directly to policyowner accounts through the redemption of units are excluded. For this separate account, charges made through the redemption of units ranged up to $40 per policy annually, depending on the product selected.

 

Total Return – The Total Return represents the change in the unit value reported year-to-date; however, subaccounts which commenced during a year, as shown in Note 1, are based on shorter return periods. These percentages do not include any expenses assessed through the redemption of units. As the total return is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract total returns are not within the ranges presented.

 

 

 

 

 

 

 

 

 

 

 FS-75 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
Calvert:                            
Balanced                            
2023 3.71  5.29    214,109   996,202   1.60   0.45  0.60    16.12  16.30 
2022 3.19  4.55    239,356   943,474   1.31   0.45  0.60    (15.92) (15.79)
2021 3.79  5.41    195,162   952,862   1.08   0.45  0.60    14.43  14.60 
2020 3.30  4.73    206,443   940,809   1.57   0.45  0.60    14.57  14.74 
2019 2.88  4.13    183,112   743,720   1.60   0.45  0.60    16.69  23.66 
                             
Mid Cap                            
2023 86.44  86.44    4,215   364,339   0.19   0.60  0.60    10.98  10.98 
2022 77.89  77.89    4,562   355,290    -    0.60  0.60    (19.97) (19.97)
2021 37.47  97.32    9,429   917,590   0.20   0.60  0.60    2.47  14.34 
2020 85.11  88.69    9,572   814,998   0.39   0.60  0.60    11.58  11.60 
2019 76.28  79.48    12,103   923,458   0.45   0.60  0.60    30.58  30.58 
                             
Scudder:                            
Small Cap                            
2023 51.90  51.90    2,824   146,567   1.45   0.60  0.60    16.06  16.06 
2022 44.71  44.71    5,039   225,323   0.92   0.60  0.60    (21.11) (21.11)
2021 56.68  56.68    5,220   295,881   0.92   0.60  0.60    13.82  13.82 
2020 49.80  49.80    3,415   170,061   1.13   0.60  0.60    18.72  18.72 
2019 41.95  41.95    4,358   182,784   1.09   0.60  0.60    24.48  24.48 
                             
Small Mid Value                          
2023 25.42  28.50    61,712   1,673,316   1.14   0.45  0.60    14.26  14.44 
2022 22.21  24.94    69,985   1,663,967   0.86   0.45  0.60    (16.30) (16.18)
2021 26.50  29.80    67,428   1,924,411   1.29   0.45  0.60    29.72  29.92 
2020 20.40  22.97    58,715   1,295,786   1.34   0.45  0.60    (1.39) (1.24)
2019 20.66  23.30    52,292   1,163,283   0.70   0.45  0.60    20.79  20.97 
                             
Thematic                            
2023 16.31  16.69    43,423   712,614   0.75   0.45  0.60    15.35  15.52 
2022 14.11  14.47    46,366   659,108   1.04   0.45  0.60    (28.94) (28.83)
2021 19.83  20.37    56,698   1,133,779   0.36   0.45  0.60    7.47  7.63 
2020 18.43  18.95    21,674   408,539   1.51   0.45  0.60    21.95  22.14 
2019 15.09  15.54    22,626   349,127   1.69   0.45  0.60    30.44  30.64 
                             
Growth                            
2023 79.16  96.14    8,254   710,991   0.07   0.45  0.60    37.75  37.96 
2022 57.38  69.79    7,173   450,114   0.09   0.45  0.60    (31.15) (31.05)
2021 83.22  101.36    8,272   776,255   0.20   0.45  0.60    22.05  22.23 
2020 68.09  83.05    8,286   649,861   0.46   0.45  0.60    38.21  38.42 
2019 49.19  60.09    6,442   362,993   0.68   0.45  0.60    36.32  36.52 

 

 FS-76 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
Fidelity:                            
Overseas IC                            
2023 31.66  43.52    86,298   3,417,312   1.10   0.45  0.60    19.79  19.97 
2022 26.39  36.33    87,962   2,885,351   1.08   0.45  0.60    (24.93) (24.82)
2021 35.10  48.40    97,248   4,304,910   0.52   0.45  0.60    18.99  19.16 
2020 29.46  40.68    108,868   4,060,002   0.44   0.45  0.60    14.92  15.10 
2019 25.59  35.40    119,405   3,877,076   1.77   0.45  0.60    27.00  27.19 
                             
Inv. Grade Bond IC                          
2023 14.64  21.16    1,141,990   21,911,122   2.59   0.45  0.60    5.57  5.73 
2022 13.85  20.04    1,242,581   22,477,309   2.22   0.45  0.60    (13.48) (13.35)
2021 15.98  23.17    1,343,099   28,296,481   2.03   0.45  0.60    (1.20) (1.05)
2020 16.15  23.45    1,239,159   26,840,114   2.24   0.45  0.60    8.74  8.90 
2019 14.83  21.56    1,269,064   25,271,452   2.75   0.45  0.60    9.01  9.18 
                             
Equity Income IC                          
2023 44.81  83.11    41,768   3,150,442   1.87   0.45  0.60    9.99  10.15 
2022 40.68  75.56    45,601   3,098,193   1.96   0.45  0.60    (5.52) (5.38)
2021 42.99  79.98    42,834   3,138,310   1.94   0.45  0.60    24.15  24.33 
2020 34.58  64.42    43,926   2,607,587   1.76   0.45  0.60    6.06  6.22 
2019 32.55  60.74    49,170   2,884,137   1.93   0.45  0.60    26.68  26.87 
                             
Growth IC                            
2023 211.86  215.47    23,410   5,031,167   0.14   0.45  0.60    35.43  35.63 
2022 156.21  159.10    24,734   3,924,007   0.59   0.45  0.60    (24.91) (24.79)
2021 207.71  211.87    27,869   5,891,580    -    0.45  0.60    22.48  22.66 
2020 169.33  172.98    29,867   5,158,611   0.08   0.45  0.60    43.03  43.25 
2019 118.21  120.94    34,515   4,166,176   0.26   0.45  0.60    33.51  33.71 
                             
High Income IC                          
2023 7.33  14.77    219,610   1,984,220   5.98   0.45  0.60    9.82  9.98 
2022 6.66  13.45    190,668   1,753,844   5.06   0.45  0.60    (11.90) (11.77)
2021 7.55  15.26    222,928   2,309,608   5.32   0.45  0.60    3.79  3.94 
2020 7.27  14.70    214,733   2,156,220   5.05   0.45  0.60    2.13  2.28 
2019 7.10  14.40    223,252   2,299,286   5.22   0.45  0.60    14.42  14.59 
                             
High Income SC                          
2023 18.11  18.11    1,522   27,573   5.30   0.60  0.60    9.85  9.85 
2022 16.49  16.49    1,730   28,522   4.99   0.60  0.60    (12.08) (12.08)
2021 18.76  18.76    1,817   34,079   5.21   0.60  0.60    3.87  3.87 
2020 18.06  18.06    1,920   34,671   4.43   0.60  0.60    2.04  2.04 
2019 17.70  17.70    2,699   47,765   5.11   0.60  0.60    14.23  14.23 

 

 FS-77 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
Fidelity, continued:                          
Contrafund IC                          
2023 88.63  149.56    163,298   21,171,974   0.49   0.45  0.60    32.66  32.86 
2022 66.71  112.74    173,093   17,063,778   0.51   0.45  0.60    (26.75) (26.64)
2021 90.94  153.91    175,645   24,406,141   0.06   0.45  0.60    27.07  27.26 
2020 71.46  121.12    190,306   21,012,020   0.25   0.45  0.60    29.79  29.98 
2019 54.97  93.32    202,400   17,499,237   0.45   0.45  0.60    30.79  30.99 
                             
Contrafund SC                          
2023 149.25  149.25    3,438   513,173   0.31   0.60  0.60    32.55  32.55 
2022 112.60  112.60    7,298   821,803   0.36   0.60  0.60    (26.82) (26.82)
2021 153.87  153.87    8,702   1,338,963   0.05   0.60  0.60    26.95  26.95 
2020 121.21  121.21    10,336   1,252,817   0.15   0.60  0.60    29.65  29.65 
2019 93.49  93.49    9,943   929,555   0.35   0.60  0.60    30.66  30.66 
                             
Mid Cap IC                            
2023 65.96  137.02    63,331   7,791,882   0.61   0.45  0.60    14.39  14.56 
2022 57.58  119.78    63,065   6,925,712   0.54   0.45  0.60    (15.25) (15.12)
2021 67.84  141.33    68,079   8,779,276   0.62   0.45  0.60    24.85  25.04 
2020 54.25  113.20    68,034   7,307,515   0.67   0.45  0.60    17.48  17.66 
2019 46.11  96.36    72,325   6,573,412   0.83   0.45  0.60    22.71  22.90 
                             
Mid Cap SC                            
2023 134.43  134.43    1,489   200,116   0.45   0.60  0.60    14.32  14.32 
2022 117.59  117.59    2,770   325,679   0.41   0.60  0.60    (15.36) (15.36)
2021 138.93  138.93    3,213   446,328   0.49   0.60  0.60    24.76  24.76 
2020 111.36  111.36    3,621   403,218   0.56   0.60  0.60    17.33  17.33 
2019 94.91  94.91    3,897   369,880   0.79   0.60  0.60    22.61  22.61 
                             
Strategic                            
2023 14.39  19.92    621,335   10,919,629   4.29   0.45  0.60    8.76  8.92 
2022 13.21  18.31    684,816   11,135,586   3.63   0.45  0.60    (11.79) (11.65)
2021 14.96  20.76    732,162   13,566,892   2.72   0.45  0.60    3.12  3.28 
2020 14.48  20.13    646,567   11,835,872   3.26   0.45  0.60    6.87  7.03 
2019 13.53  18.84    717,097   12,276,160   3.42   0.45  0.60    10.23  10.39 
                             
Money Market                          
2023 1.07  1.08    30,771,775   32,988,496   4.79   0.45  0.60    4.27  4.43 
2022 1.02  1.03    76,015,192   78,347,918   1.71   0.45  0.60    0.83  0.99 
2021 1.01  1.02    19,834,478   20,173,426   0.01   0.45  0.60    (0.59) (0.43)
2020 1.02  1.03    20,942,308   21,415,650   0.21   0.45  0.60    (0.28) (0.13)
2019 1.02  1.03    17,767,199   18,194,086   1.99   0.45  0.60    1.41  1.56 

 

 FS-78 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
AIM:                            
Dividend                            
2023 42.90  42.90    2,362   101,336   2.02   0.60  0.60    8.40  8.40 
2022 39.57  39.57    2,659   105,212   1.96   0.60  0.60    (2.26) (2.26)
2021 40.49  40.49    2,542   102,934   2.17   0.60  0.60    18.18  18.18 
2020 34.26  34.26    2,670   91,484   2.85   0.60  0.60    (0.46) (0.46)
2019 34.42  34.42    3,578   123,144   2.56   0.60  0.60    24.35  24.35 
                             
Health                            
2023 69.74  69.74    576   40,182    -    0.60  0.60    2.41  2.41 
2022 68.10  68.10    856   58,270    -    0.60  0.60    (13.83) (13.83)
2021 79.03  79.03    2,429   191,979   0.21   0.60  0.60    11.63  11.63 
2020 70.80  70.80    2,458   173,998   0.31   0.60  0.60    13.77  13.77 
2019 62.23  62.23    2,504   155,846   0.02   0.60  0.60    31.71  31.71 
                             
Technology                            
2023 18.40  18.40    7,840   144,240    -    0.60  0.60    36.18  36.18 
2022 12.59  12.59     -     -     -    0.60  0.60    (39.39) (39.39)
2021 67.55  67.55    2,057   138,970    -    0.60  0.60    13.73  13.73 
2020 59.40  59.40    2,866   170,222    -    0.60  0.60    45.24  45.24 
2019 40.90  40.90    4,801   196,332    -    0.60  0.60    35.07  35.07 
                             
Intl. Growth                            
2023 50.33  54.66    14,571   768,134   0.20   0.45  0.60    17.44  17.62 
2022 42.79  46.55    15,298   687,139   1.57   0.45  0.60    (18.79) (18.67)
2021 52.61  57.32    24,154   1,355,375   1.27   0.45  0.60    5.26  5.41 
2020 49.91  54.45    26,150   1,394,467   2.17   0.45  0.60    13.31  13.48 
2019 43.98  48.06    30,508   1,440,391   1.60   0.45  0.60    27.81  28.00 
                             
Franchise                            
2023 143.36  146.59    814   118,063    -    0.45  0.60    40.09  40.30 
2022 102.33  104.49    687   70,893    -    0.45  0.60    (31.52) (31.42)
2021 149.44  152.36    3,058   464,715    -    0.45  0.60    11.26  11.43 
2020 134.31  136.74    1,152   156,265   0.08   0.45  0.60    41.50  41.71 
2019 94.92  96.49    896   85,973    -    0.45  0.60    35.94  36.14 
                             
Janus:                            
Growth                            
2023 106.49  106.49    649   69,090   0.15   0.60  0.60    42.32  42.32 
2022 74.82  74.82    677   50,660   0.71   0.60  0.60    (30.31) (30.31)
2021 107.36  107.36    706   75,833   0.10   0.60  0.60    19.62  19.62 
2020 89.76  89.76    707   63,429   0.41   0.60  0.60    32.16  32.16 
2019 67.92  67.92    707   48,027   0.46   0.60  0.60    34.71  34.71 

 

 FS-79 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
Neuberger Berman:                          
Mid-Cap                            
2023 46.85  46.85    3,472   162,647    -    0.60  0.60    17.44  17.44 
2022 39.89  39.89    3,486   139,060    -    0.60  0.60    (29.16) (29.16)
2021 56.31  56.31    6,699   377,240    -    0.60  0.60    12.32  12.32 
2020 50.14  50.14    6,867   344,258    -    0.60  0.60    39.14  39.14 
2019 36.03  36.03    7,723   278,279    -    0.60  0.60    31.96  31.96 
                             
Bond                            
2023 23.26  23.26    2   44   5.04   0.60  0.60    5.39  5.39 
2022 22.07  22.07    859   18,953   3.63   0.60  0.60    (5.75) (5.75)
2021 23.42  23.42    1,278   29,938   2.49   0.60  0.60    0.14  0.14 
2020 23.38  23.38    1,469   34,360   2.19   0.60  0.60    2.84  2.84 
2019 22.74  22.74    1,843   41,898   2.21   0.60  0.60    3.07  3.07 
                             
Equity                            
2023 42.46  42.75    23,508   1,000,998   0.31   0.45  0.60    26.14  26.33 
2022 33.66  33.84    28,356   955,991   0.44   0.45  0.60    (18.94) (18.82)
2021 41.52  41.68    30,022   1,248,152   0.39   0.45  0.60    22.74  22.92 
2020 33.83  33.91    27,584   933,781   0.54   0.45  0.60    18.85  19.03 
2019 28.46  28.49    36,860   1,049,519   0.40   0.45  0.60    9.07  9.10 
                             
Regency                            
2023 27.43  39.83    15,742   450,021   1.02   0.45  0.60    10.34  10.51 
2022 24.82  36.10    18,489   501,066   0.58   0.45  0.60    (10.29) (10.16)
2021 27.63  40.24    16,680   588,880   0.70   0.45  0.60    32.01  32.20 
2020 20.90  30.48    10,691   263,924   0.98   0.45  0.60    (3.20) (3.06)
2019 21.56  31.49    12,165   333,388   0.72   0.45  0.60    16.05  16.22 
                             
Rydex:                            
Nova                            
2023 46.53  475.71    16,536   1,215,249    -    0.45  0.60    34.28  34.47 
2022 34.65  353.77    10,075   486,927   0.35   0.45  0.60    (30.68) (30.58)
2021 49.99  509.58    18,976   1,291,880   0.37   0.45  0.60    41.34  41.55 
2020 35.37  360.01    20,334   980,018   0.90   0.45  0.60    19.31  19.49 
2019 29.64  301.28    16,324   686,514   1.71   0.45  0.60    44.18  44.39 
                             
NASDAQ                            
2023 112.89  119.28    28,740   3,369,247    -    0.45  0.60    52.31  52.54 
2022 74.01  78.32    25,141   1,936,559    -    0.45  0.60    (34.53) (34.44)
2021 112.88  119.63    27,004   3,180,251    -    0.45  0.60    24.79  24.98 
2020 90.32  95.86    31,911   3,015,345   0.30   0.45  0.60    44.09  44.31 
2019 62.58  66.53    30,013   1,996,143   0.13   0.45  0.60    36.05  36.25 

 

 FS-80 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
Rydex, continued:                          
Precious Metals                          
2023 9.77  43.81    160,881   2,059,566   0.40   0.45  0.60    3.21  3.36 
2022 9.47  42.38    319,404   3,532,346   0.52   0.45  0.60    (11.61) (11.48)
2021 10.71  47.88    289,051   3,579,577   3.67   0.45  0.60    (9.73) (9.60)
2020 11.86  52.96    221,885   3,136,742   4.62   0.45  0.60    33.50  33.70 
2019 8.89  39.61    410,037   3,899,897    -    0.45  0.60    51.29  51.52 
                             
Inv. S&P 500                          
2023 0.54  5.03    140,781   106,398   1.38   0.45  0.60    (15.46) (15.33)
2022 0.64  5.94    173,880   174,753    -    0.45  0.60    15.90  16.07 
2021 0.55  5.12    213,942   141,215    -    0.45  0.60    (27.55) (24.89)
2020 0.73  6.81    301,622   230,905   0.63   0.45  0.60    (29.33) (25.47)
2019 0.98  9.12    334,098   333,598   0.79   0.45  0.60    (23.37) (7.34)
                             
Gov. Long Bond                          
2023 15.72  22.92    46,031   736,868   2.92   0.45  0.60    (1.62) 3.17 
2022 15.98  23.26    45,187   729,997   1.47   0.45  0.60    (41.18) (25.87)
2021 27.16  39.49    64,493   1,775,940   0.37   0.45  0.60    (8.04) (2.30)
2020 29.54  42.88    67,819   2,028,145   0.12   0.45  0.60    (11.02) 21.23 
2019 24.37  35.32    63,207   1,565,021   1.20   0.45  0.60    16.08  17.36 
                             
Inverse NASDAQ                          
2023 0.88  4.25    133,058   141,332   0.27   0.45  0.60    (32.26) (32.16)
2022 1.30  6.26    79,665   187,683    -    0.45  0.60    34.03  34.23 
2021 0.97  4.66    28,802   37,887    -    0.45  0.60    (25.90) (25.79)
2020 1.31  6.28    34,427   52,714   0.84   0.45  0.60    (38.37) (38.28)
2019 2.13  10.18    39,330   93,374   0.20   0.45  0.60    (28.44) (28.33)
                             
Inv. Long Bond                          
2023 7.57  33.25    14,888   211,151    -    0.45  0.60    3.61  3.77 
2022 7.31  32.05    22,512   353,726    -    0.45  0.60    45.34  45.55 
2021 5.03  22.02    8,211   118,829    -    0.45  0.60    (4.24) 0.37 
2020 5.01  21.90    11,690   58,553   0.23   0.45  0.60    (21.56) (10.16)
2019 6.39  27.88    3,833   24,476    -    0.45  0.60    (18.11) (13.82)
                             
Russell                            
2023 91.78  98.90    4,857   478,756    -    0.45  0.60    19.07  19.25 
2022 76.97  83.07    6,517   539,925    -    0.45  0.60    (33.85) (33.75)
2021 116.19  125.58    7,058   882,002   0.06   0.45  0.60    18.29  18.47 
2020 98.08  106.16    8,165   858,907    -    0.45  0.60    19.32  19.50 
2019 82.07  88.97    16,689   1,427,066    -    0.45  0.60    34.56  34.76 

 

 FS-81 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
Rydex, continued:                          
Sector Rotation                          
2023 19.60  20.78    22,799   460,661   0.26   0.45  0.60    12.08  12.25 
2022 17.46  18.54    28,032   506,237   0.49   0.45  0.60    (14.90) (14.77)
2021 20.49  21.79    32,759   693,671   0.66   0.45  0.60    23.06  23.24 
2020 16.62  17.70    36,086   618,942   0.48   0.45  0.60    4.30  4.46 
2019 15.91  16.97    76,692   1,292,568   0.59   0.45  0.60    4.91  5.07 
                             
Third Avenue:                          
Value                            
2023 27.11  56.68    44,139   2,356,613   2.33   0.45  0.60    20.09  20.27 
2022 22.54  47.20    48,388   2,114,274   1.44   0.45  0.60    15.42  15.59 
2021 19.50  40.90    47,263   1,852,146   0.71   0.45  0.60    21.34  21.52 
2020 16.05  33.70    48,729   1,571,387   2.71   0.45  0.60    (2.98) (2.83)
2019 16.51  34.74    50,889   1,705,926   0.27   0.45  0.60    11.79  11.96 
                             
Vanguard:                            
Equity Index                            
2023 85.63  133.98    804,604   81,845,114   1.50   0.45  0.60    25.36  25.55 
2022 68.20  106.87    562,135   50,257,711   1.24   0.45  0.60    (18.72) (18.59)
2021 83.78  131.48    940,077   94,271,192   1.25   0.45  0.60    27.78  27.97 
2020 65.47  102.89    988,876   78,208,562   1.28   0.45  0.60    17.49  17.67 
2019 55.64  87.57    952,006   65,762,528   1.56   0.45  0.60    30.51  30.71 
                             
Total Bond                            
2023 12.67  17.27    5,825,178   79,361,766   2.45   0.45  0.60    4.95  5.11 
2022 12.05  16.46    5,149,173   68,113,564   2.34   0.45  0.60    (13.73) (13.60)
2021 13.95  19.08    6,568,672   99,521,736   1.97   0.45  0.60    (2.30) (2.16)
2020 14.26  19.53    5,642,106   88,255,308   2.13   0.45  0.60    6.94  7.10 
2019 13.31  18.26    6,181,456   90,355,257   1.93   0.45  0.60    8.03  8.19 
                             
REIT Index                            
2023 20.17  56.05    645,645   22,138,907   2.50   0.45  0.60    11.03  11.20 
2022 18.14  50.48    671,425   21,279,837   1.94   0.45  0.60    (26.74) (26.63)
2021 24.72  68.90    686,866   30,555,654   2.02   0.45  0.60    39.37  39.58 
2020 17.71  49.44    691,645   23,397,366   2.62   0.45  0.60    (5.42) (5.28)
2019 18.70  52.27    767,511   26,538,661   2.64   0.45  0.60    28.03  28.23 
                             
Mid-Cap                            
2023 43.36  75.66    565,039   33,224,932   1.45   0.45  0.60    15.14  15.31 
2022 37.61  65.71    637,190   32,325,311   1.16   0.45  0.60    (19.30) (19.18)
2021 46.53  81.43    695,347   43,769,713   1.07   0.45  0.60    23.61  23.80 
2020 37.59  65.87    639,152   34,577,009   1.53   0.45  0.60    17.37  17.54 
2019 31.98  56.13    756,540   34,427,516   1.43   0.45  0.60    30.09  30.29 

 

 FS-82 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
Vanguard, continued:                          
Stock Market Index                          
2023 79.86  138.27    483,698   49,117,562   1.14   0.45  0.60    25.20  25.39 
2022 63.69  110.44    503,327   40,903,658   1.33   0.45  0.60    (20.07) (19.95)
2021 79.56  138.17    520,428   52,985,956   1.15   0.45  0.60    24.89  25.08 
2020 63.61  110.63    481,874   40,599,633   1.51   0.45  0.60    19.83  20.01 
2019 53.01  92.32    410,376   30,699,465   1.52   0.45  0.60    29.97  30.17 
                             
Conservative                          
2023 32.69  33.06    224,365   7,394,386   1.89   0.45  0.60    11.84  12.01 
2022 29.23  29.52    217,515   6,407,778   2.38   0.45  0.60    (15.40) (15.28)
2021 34.56  34.84    213,302   7,422,325   1.59   0.45  0.60    5.36  5.51 
2020 32.80  33.02    226,757   7,481,548   2.12   0.45  0.60    11.06  11.23 
2019 29.53  29.69    167,632   4,973,237   1.64   0.45  0.60    15.14  15.31 
                             
Moderate                            
2023 40.53  40.89    166,630   6,811,097   1.81   0.45  0.60    14.86  15.03 
2022 35.29  35.55    99,335   3,529,120   2.41   0.45  0.60    (16.43) (16.30)
2021 42.22  42.47    90,602   3,832,645   1.26   0.45  0.60    9.42  9.58 
2020 38.59  38.76    78,034   3,008,380   1.65   0.45  0.60    13.09  13.26 
2019 34.12  34.22    41,381   1,410,337   2.28   0.45  0.60    18.82  19.00 
                             
Short-Term                            
2023 11.64  11.77    1,988,128   23,344,335   2.11   0.45  0.60    5.53  5.68 
2022 11.03  11.14    2,175,845   24,176,045   1.64   0.45  0.60    (6.28) (6.14)
2021 11.77  11.87    2,409,536   28,533,095   2.12   0.45  0.60    (1.05) (0.90)
2020 11.89  11.97    2,278,389   27,229,440   2.36   0.45  0.60    4.86  5.02 
2019 11.34  11.40    1,757,653   20,007,076   2.49   0.45  0.60    5.06  5.22 
                             
International Stock                          
2023 24.41  24.51    349,477   8,564,576   2.85   0.45  0.60    14.86  15.03 
2022 21.25  21.31    367,801   7,836,993   3.28   0.45  0.60    (16.51) (16.39)
2021 25.46  25.49    349,524   8,908,188   1.71   0.45  0.60    7.88  8.04 
2020 23.59  23.60    149,881   3,536,136   1.50   0.45  0.60    10.51  10.68 
2019 21.32  21.35    23,298   496,859    -    0.45  0.60    2.98  6.73 
                             
Global Bond                            
2023 20.21  20.31    103,152   2,092,270   1.95   0.45  0.60    5.88  6.04 
2022 19.08  19.16    108,935   2,084,407   2.98   0.45  0.60    (13.65) (13.52)
2021 22.10  22.15    120,859   2,674,635   1.43   0.45  0.60    (2.43) (2.28)
2020 22.65  22.67    73,057   1,655,829   1.31   0.45  0.60    6.03  6.19 
2019 21.35  21.36    36,170   772,274    -    0.45  0.60    (1.16) 1.07 

 FS-83 
 


5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
Vanguard, continued:                          
Equity Income                          
2023 45.23  78.76    368,409   22,256,110   2.63   0.45  0.60    7.46  7.62 
2022 42.03  73.29    385,388   22,359,207   2.47   0.45  0.60    (1.25) (1.11)
2021 42.50  74.22    384,794   23,013,348   1.90   0.45  0.60    24.58  24.77 
2020 34.07  59.58    355,296   17,841,662   2.69   0.45  0.60    2.63  2.78 
2019 33.14  58.05    374,625   18,676,247   2.36   0.45  0.60    23.68  23.87 
                             
High Yield Bond                          
2023 10.87  20.15    847,758   12,372,045   5.89   0.45  0.60    11.00  11.17 
2022 9.78  18.16    715,544   10,309,385   5.07   0.45  0.60    (9.90) (9.77)
2021 10.84  20.15    1,024,954   15,248,284   4.16   0.45  0.60    3.06  3.21 
2020 10.50  19.55    760,431   12,085,861   5.58   0.45  0.60    5.04  5.20 
2019 9.98  18.61    779,913   12,111,105   5.77   0.45  0.60    14.98  15.16 
                             
Growth                            
2023 59.50  65.56    350,732   22,179,684   0.24   0.45  0.60    39.30  39.51 
2022 42.65  47.06    378,337   17,159,987    -    0.45  0.60    (33.76) (33.66)
2021 64.29  71.05    420,277   28,682,518   0.03   0.45  0.60    17.16  17.33 
2020 54.79  60.64    384,276   22,603,953   0.33   0.45  0.60    42.24  42.45 
2019 38.47  42.63    389,244   16,257,643   0.39   0.45  0.60    33.02  33.22 
                             
Balanced                            
2023 41.82  67.31    419,578   23,681,697   2.05   0.45  0.60    13.65  13.82 
2022 36.75  59.23    455,062   22,773,079   1.94   0.45  0.60    (14.81) (14.69)
2021 43.07  69.53    482,192   28,381,544   1.72   0.45  0.60    18.31  18.48 
2020 36.35  58.77    441,306   23,113,772   2.55   0.45  0.60    10.02  10.18 
2019 32.99  53.42    435,454   21,233,437   2.66   0.45  0.60    21.75  21.94 
                             
International                          
2023 39.53  52.19    748,178   33,931,623   1.58   0.45  0.60    13.97  14.14 
2022 34.63  45.80    702,766   28,756,863   1.31   0.45  0.60    (30.54) (30.43)
2021 49.78  65.93    849,896   49,179,570   0.27   0.45  0.60    (2.13) (1.98)
2020 50.79  67.36    927,626   54,792,347   1.07   0.45  0.60    56.64  56.87 
2019 32.38  43.01    1,177,128   43,660,731   1.19   0.45  0.60    30.43  30.63 
                             
Diversified                            
2023 36.11  53.62    330,612   16,428,641   1.42   0.45  0.60    19.41  19.59 
2022 30.20  44.90    365,234   15,303,267   1.15   0.45  0.60    (12.02) (11.88)
2021 34.27  51.03    398,630   19,143,332   1.07   0.45  0.60    29.69  29.88 
2020 26.38  39.35    446,965   16,500,974   2.66   0.45  0.60    11.11  11.28 
2019 23.71  35.42    471,505   16,101,864   2.86   0.45  0.60    24.94  25.13 

 FS-84 
 


5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
Vanguard, continued:                          
Small Company Growth                          
2023 42.44  81.18    204,210   15,206,543   0.41   0.45  0.60    18.93  19.11 
2022 35.63  68.25    222,155   13,863,420   0.27   0.45  0.60    (25.80) (25.69)
2021 47.95  91.98    241,603   20,391,329   0.37   0.45  0.60    13.54  13.71 
2020 42.17  81.02    277,356   20,335,537   0.67   0.45  0.60    22.45  22.63 
2019 34.39  66.16    342,555   20,217,200   0.51   0.45  0.60    27.33  27.54 
                             
Allspring:                            
Discovery                            
2023 66.41  66.41    6,771   449,633    -    0.60  0.60    19.43  19.43 
2022 55.60  55.60    8,981   499,396    -    0.60  0.60    (38.22) (38.22)
2021 90.00  90.00    10,517   946,510    -    0.60  0.60    (5.61) (5.61)
2020 95.35  95.35    10,477   998,981    -    0.60  0.60    61.68  61.68 
2019 58.97  58.97    10,518   620,280    -    0.60  0.60    38.19  38.19 
                             
Opportunity                            
2023 205.99  205.99    870   179,144    -    0.60  0.60    25.75  25.75 
2022 163.82  163.82    884   144,812    -    0.60  0.60    (21.28) (21.28)
2021 208.10  208.10    1,281   266,522   0.04   0.60  0.60    24.03  24.03 
2020 167.77  167.77    1,295   217,318   0.44   0.60  0.60    20.28  20.28 
2019 139.49  139.49    1,310   182,665   0.28   0.60  0.60    30.68  30.68 
                             
ProFunds:                            
Bull                            
2023 93.15  93.15    12,097   1,126,740    -    0.90  0.90    22.64  22.64 
2022 75.95  75.95    15,837   1,202,874    -    0.90  0.90    (20.45) (20.45)
2021 95.48  95.48    15,889   1,517,112    -    0.90  0.90    25.21  25.21 
2020 76.26  76.26    16,981   1,294,952   0.09   0.90  0.90    14.99  14.99 
2019 66.31  66.31    13,789   914,384   0.27   0.90  0.90    27.73  27.73 
                             
Europe                            
2023 40.86  40.86    1,597   65,248   2.13   0.90  0.90    16.42  16.42 
2022 35.09  35.09    1,748   61,356   1.35   0.90  0.90    (8.59) (8.59)
2021 38.39  38.39    2,299   88,268   0.90   0.90  0.90    23.42  23.42 
2020 31.11  31.11    1,781   55,402   2.54   0.90  0.90    (10.05) (10.05)
2019 34.58  34.58    2,216   76,620   2.82   0.90  0.90    16.74  16.74 
                             
Mid-Cap                            
2023 42.07  42.07     -     -    0.42   0.90  0.90    3.02  3.02 
2022 90.21  90.21    124   11,167   0.18   0.90  0.90    (9.27) (9.27)
2021 99.42  99.42    335   33,267   0.26   0.90  0.90    27.38  27.38 
2020 78.05  78.05    57   4,467   0.16   0.90  0.90    1.39  1.39 
2019 76.98  76.98    758   58,326   0.20   0.90  0.90    22.97  22.97 

 

 FS-85 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
ProFunds, continued:                          
NASDAQ-100                          
2023 57.71  57.71    201   11,576    -    0.90  0.90    44.43  44.43 
2022 38.05  38.05    170   6,460    -    0.90  0.90    (18.74) (18.74)
2021 73.84  73.84    284   20,986    -    0.90  0.90    1.57  1.57 
2020 74.77  74.77    459   34,326    -    0.90  0.90    46.86  46.86 
2019  -   -     -     -     -     -   -     -   - 
                             
Small-Cap                            
2023 39.34  39.34    118   4,624    -    0.90  0.90    13.89  13.89 
2022 34.54  34.54    208   7,176    -    0.90  0.90    (22.54) (22.54)
2021 44.59  44.59    129   5,737    -    0.90  0.90    5.07  5.07 
2020 39.82  39.82     -     -     -    0.90  0.90    (2.13) (2.13)
2019  -   -     -     -     -     -   -     -   - 
                             
Small-Cap Value                          
2023 42.96  42.96     -     -    0.03   0.90  0.90    1.44  1.44 
2022 78.60  78.60    114   8,985    -    0.90  0.90    (13.20) (13.20)
2021 90.55  90.55    151   13,716   0.09   0.90  0.90    27.42  27.42 
2020 71.06  71.06    61   4,348   0.02   0.90  0.90    0.14  0.14 
2019 70.96  70.96    71   5,021    -    0.90  0.90    21.46  21.46 
                             
Classic Dow                            
2023 20.60  20.60     -     -    0.06   0.90  0.90    2.91  2.91 
2022 64.00  64.00    174   11,112    -    0.90  0.90    (9.66) (9.66)
2021 70.85  70.85    76   5,401    -    0.90  0.90    16.45  16.45 
2020 60.84  60.84    758   46,119   0.41   0.90  0.90    6.45  6.45 
2019 57.15  57.15    1,293   73,888   0.09   0.90  0.90    21.09  21.09 
                             
Bear                            
2023 14.27  14.27    76   1,081   0.31   0.90  0.90    (16.04) (16.04)
2022 16.99  16.99    1,283   21,793    -    0.90  0.90    16.07  16.07 
2021 14.64  14.64    219   3,209    -    0.90  0.90    (25.30) (25.30)
2020 19.59  19.59    78   1,531   0.50   0.90  0.90    (26.50) (26.50)
2019  -   -     -     -     -     -   -     -   - 
                             
Short NASDAQ                          
2023 12.29  12.29     -     -     -    0.90  0.90    (26.23) (26.23)
2022 0.95  0.95    24,186   22,933    -    0.90  0.90    33.86  33.86 
2021 0.71  0.71    2,945   2,086    -    0.90  0.90    (25.81) (25.81)
2020 0.95  0.95    615   587   0.06   0.90  0.90    (43.34) (43.34)
2019 1.69  1.69    615   1,036   0.17   0.90  0.90    (28.69) (28.69)

 

 FS-86 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
ProFunds, continued:                          
Short Small-Cap                          
2023 22.09  22.09     -     -     -    0.90  0.90    (4.66) (4.66)
2022 26.32  26.32    285   7,506    -    0.90  0.90    29.65  29.65 
2021 22.33  22.33    228   5,101    -    0.90  0.90    (24.02) (24.02)
2020 1.41  1.41    7,193   10,177   0.55   0.90  0.90    (32.57) (32.57)
2019 2.10  2.10    4,504   9,451   0.12   0.90  0.90    (21.49) (21.49)
                             
Short Dow                            
2023 5.19  5.19    150   778    -    0.90  0.90    (8.91) (8.91)
2022 5.70  5.70    150   854    -    0.90  0.90    4.78  4.78 
2021 5.44  5.44    150   815    -    0.90  0.90    (20.51) (20.51)
2020 6.85  6.85    150   1,026   0.23   0.90  0.90    (21.64) (21.64)
2019 8.74  8.74    221   1,935   0.05   0.90  0.90    (19.94) (19.94)
                             
UltraMid                            
2023 59.79  59.79    315   18,841    -    0.90  0.90    21.12  21.12 
2022 49.36  49.36    698   34,453    -    0.90  0.90    (32.77) (32.77)
2021 73.43 73.43    315   23,138    -    0.90  0.90    35.64  35.64 
2020 50.42  50.42     -     -    0.24   0.90  0.90    (28.41) (28.41)
2019 124.50  124.50    141   17,515    -    0.90  0.90    46.50  46.50 
                             
UltraOTC                            
2023 498.19  498.19    3,199   1,593,758    -    0.90  0.90    113.55  113.55 
2022 233.29  233.29    3,146   734,024    -    0.90  0.90    (61.28) (61.28)
2021 602.51  602.51    3,144   1,894,176    -    0.90  0.90    51.15  51.15 
2020 398.62  398.62    3,096   1,234,273    -    0.90  0.90    84.63  84.63 
2019 215.90  215.90    3,303   713,037    -    0.90  0.90    78.06  78.06 
                             
UltraSmall                            
2023 19.26  19.26    739   14,232    -    0.90  0.90    21.34  21.34 
2022 15.87  15.87    739   11,730    -    0.90  0.90    (44.19) (44.19)
2021 28.44  28.44    739   21,017    -    0.90  0.90    2.09  2.09 
2020 23.21  23.21     -     -    0.79   0.90  0.90    (28.94) (28.94)
2019 70.37  70.37    169   11,859    -    0.90  0.90    46.02  46.02 
                             
UltraBull                            
2023 117.35  117.35    1,230   144,301    -    0.90  0.90    43.94  43.94 
2022 81.53  81.53    1,001   81,614    -    0.90  0.90    (39.66) (39.66)
2021 135.12  135.12    1,063   143,601    -    0.90  0.90    56.73  56.73 
2020 86.21  86.21    826   71,182   0.86   0.90  0.90    18.76  18.76 
2019 72.60  72.60    849   61,655   0.26   0.90  0.90    58.74  58.74 

 

 FS-87 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
ProFunds, continued:                          
U.S. Gov. Plus                          
2023 39.15  39.15    381   14,933   6.74   0.90  0.90    (0.85) (0.85)
2022 39.49  39.49    171   6,753    -    0.90  0.90    (42.23) (42.23)
2021 68.35  68.35    25   1,741    -    0.90  0.90    (7.92) (7.92)
2020 74.23  74.23    753   55,893   0.03   0.90  0.90    19.60  19.60 
2019 62.07  62.07    474   29,433   0.88   0.90  0.90    17.16  17.16 
                             
Opportunity                            
2023 44.70  44.70     -     -    0.01   0.90  0.90    19.73  19.73 
2022 4.24  4.24    14,103   59,868    -    0.90  0.90    57.06  57.06 
2021 2.70  2.70    16,561   44,759    -    0.90  0.90    (0.97) (0.97)
2020 2.73  2.73    364   992   0.39   0.90  0.90    (27.35) (27.35)
2019 3.76  3.76    846   3,179   0.16   0.90  0.90    (18.13) (18.13)
                             
Oil & Gas                            
2023 80.20  80.20    966   77,508   2.33   0.90  0.90    (3.36) (3.36)
2022 82.99  82.99    1,274   105,723   1.10   0.90  0.90    58.01  58.01 
2021 52.52  52.52    1,654   86,889   1.49   0.90  0.90    50.57  50.57 
2020 34.88  34.88    971   33,877   2.62   0.90  0.90    (35.05) (35.05)
2019 53.71  53.71    948   50,931   1.37   0.90  0.90    7.55  7.55 
                             
Precious Metals                          
2023 26.53  26.53    1,716   45,508    -    0.90  0.90    0.57  0.57 
2022 26.37  26.37    3,456   91,138    -    0.90  0.90    (11.82) (11.82)
2021 29.91  29.91    3,358   100,435    -    0.90  0.90    (9.75) (9.75)
2020 33.14  33.14    2,503   82,959   0.25   0.90  0.90    22.99  22.99 
2019 26.94  26.94    3,828   103,131   0.03   0.90  0.90    44.68  44.68 
                             
Real Estate                            
2023 98.67  98.67    849   83,797   1.14   0.90  0.90    8.75  8.75 
2022 90.73  90.73    1,005   91,178   0.76   0.90  0.90    (27.21) (27.21)
2021 124.65  124.65    969   120,804   0.02   0.90  0.90    35.85  35.85 
2020 91.75  91.75    943   86,553   1.57   0.90  0.90    (7.13) (7.13)
2019 98.80  98.80    1,081   106,845   1.68   0.90  0.90    25.63  25.63 
                             
High Yield                            
2023 24.75  24.75     -     -     -    0.90  0.90    3.15  3.15 
2022 24.63  24.63    732   18,039   3.87   0.90  0.90    (8.79) (8.79)
2021 27.00  27.00    541   14,603   2.54   0.90  0.90    (0.32) (0.32)
2020  -   -     -     -     -     -   -     -   - 
2019  -   -     -     -     -     -   -     -   - 

 

 FS-88 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
ProFunds, continued:                          
Money Market                          
2023 0.99  0.99    163,819   162,654   4.24   0.90  0.90    3.22  3.22 
2022 0.96  0.96    37,056   35,645   0.79   0.90  0.90    0.14  0.14 
2021 0.96  0.96    363,221   348,913   0.01   0.90  0.90    (0.88) (0.88)
2020 0.97  0.97    517,167   501,200   0.06   0.90  0.90    (0.86) (0.86)
2019 0.98  0.98    2,065,289   2,018,853   0.77   0.90  0.90    (0.13) (0.13)
                             
Pimco:                            
Commodity                            
2023 10.10  10.14    266,623   2,695,652   16.34   0.45  0.60    (8.40) (8.27)
2022 11.03  11.05    286,762   3,160,892   20.90   0.45  0.60    7.97  8.13 
2021 10.21  10.22    271,685   2,774,064   4.25   0.45  0.60    32.55  32.74 
2020 7.70  7.70    244,780   1,885,678   6.41   0.45  0.60    0.75  0.90 
2019 7.63  7.65    287,569   2,197,154   4.57   0.45  0.60    10.77  10.93 
                             
Total Return                            
2023 12.01  15.04    861,307   11,165,396   3.57   0.45  0.60    5.30  5.46 
2022 11.39  14.28    891,294   11,074,144   2.61   0.45  0.60    (14.81) (14.68)
2021 13.35  16.77    967,973   14,073,768   1.83   0.45  0.60    (1.85) (1.71)
2020 13.58  17.08    881,599   13,081,819   2.11   0.45  0.60    7.99  8.16 
2019 12.56  15.82    740,864   10,184,848   3.00   0.45  0.60    7.71  7.87 
                             
Low Duration                          
2023 10.92  10.92    980   10,699   3.60   0.60  0.60    4.35  4.35 
2022 10.46  10.46    1,051   10,998   1.69   0.60  0.60    (6.30) (6.30)
2021 11.17  11.17    1,054   11,765   0.48   0.60  0.60    (1.51) (1.51)
2020 11.34  11.34    9,960   112,912   1.07   0.60  0.60    2.37  2.37 
2019 11.07  11.07    5,924   65,597   2.77   0.60  0.60    3.40  3.40 
                             
American Century:                          
Mid Cap                            
2023 36.03  48.12    59,556   2,436,231   2.27   0.45  0.60    5.50  5.66 
2022 34.10  45.61    75,353   2,964,788   2.24   0.45  0.60    (1.78) (1.63)
2021 34.67  46.44    82,889   3,357,684   1.18   0.45  0.60    22.47  22.65 
2020 28.27  37.92    72,313   2,495,186   1.84   0.45  0.60    0.61  0.76 
2019 28.05  37.69    71,448   2,445,517   2.12   0.45  0.60    28.38  28.57 
                             
International                          
2023 15.11  15.95    14,511   230,208   1.13   0.45  0.60    11.90  12.07 
2022 13.49  14.25    71,361   1,015,423   1.39   0.45  0.60    (25.20) (25.09)
2021 18.00  19.06    68,821   1,303,957   0.16   0.45  0.60    8.10  8.26 
2020 16.63  17.63    71,412   1,256,102   0.50   0.45  0.60    25.13  25.31 
2019 13.27  14.09    98,317   1,380,449   0.91   0.45  0.60    27.65  27.85 

 

 FS-89 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
American Century, continued:                        
Inflation                            
2023 10.62  10.89    126,323   1,366,077   3.38   0.45  0.60    2.98  3.14 
2022 10.31  10.56    148,657   1,555,541   5.30   0.45  0.60    (13.39) (13.27)
2021 11.91  12.17    132,742   1,605,543   3.81   0.45  0.60    5.98  6.14 
2020 11.23  11.47    45,950   524,798   2.09   0.45  0.60    9.31  11.34 
2019 10.28  10.49    14,520   152,306   1.03   0.45  0.60    (0.36) (0.32)
                             
American Funds:                          
IS Growth-Inc                           
2023 74.50  84.27    9,742   790,759   1.64   0.45  0.60    25.72  25.90 
2022 59.26  66.93    7,466   494,075   1.57   0.45  0.60    (16.79) (16.66)
2021 71.22  80.31    6,951   551,584   1.50   0.45  0.60    23.76  23.86 
2020 57.55  64.84    4,363   282,802   2.18   0.45  0.60    3.88  38.18 
2019 51.34  51.34    131   6,748   1.57   0.60  0.60    7.89  7.89 
                             
IS Growth                             
2023 144.58  163.30    13,384   2,018,573   0.83   0.45  0.60    37.99  38.19 
2022 104.78  118.17    7,154   804,772   0.60   0.45  0.60    (30.18) (30.07)
2021 150.06  168.98    7,159   1,147,447   0.51   0.45  0.60    21.57  21.75 
2020 123.44  138.80    3,670   472,955   0.61   0.45  0.60    46.11  51.78 
2019 81.22  91.45    408   37,327   2.02   0.45  0.60    (1.16) 3.79 
                             
Blue Chip                             
2023 20.26  22.24    28,612   627,151   1.91   0.45  0.60    16.96  17.13 
2022 17.32  18.98    36,473   678,147   2.13   0.45  0.60    (8.83) (8.69)
2021 19.00  20.79    28,828   586,366   1.71   0.45  0.60    27.35  27.54 
2020 14.92  16.30    36,183   578,819   2.84   0.45  0.60    8.39  8.55 
2019 13.76  15.02    15,467   222,050   3.96   0.45  0.60    6.77  13.43 
                             
IS International                          
2023 21.49  22.18    7,936   175,460   1.61   0.45  0.60    15.43  15.60 
2022 18.62  19.19    7,338   140,369   1.86   0.45  0.60    (21.04) (20.93)
2021 23.58  24.27    9,921   240,247   2.62   0.45  0.60    (1.82) (1.68)
2020 24.02  24.68    7,856   193,420   1.24   0.45  0.60    13.59  13.76 
2019 21.15  21.69    3,441   73,892   5.87   0.45  0.60    3.76  4.53 
                             
IS New World                          
2023 29.59  30.07    37,064   1,112,124   1.69   0.45  0.60    15.53  15.70 
2022 25.62  25.99    43,832   1,137,319   1.69   0.45  0.60    (22.33) (22.21)
2021 32.98  33.41    30,028   1,002,473   1.29   0.45  0.60    4.54  4.69 
2020 31.55  31.92    10,352   330,372   0.22   0.45  0.60    20.41  33.32 
2019  -   -     -     -     -     -   -     -   - 

 

 FS-90 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
Franklin Templeton:                          
Global Inc.                             
2023 14.62  23.84    206,830   4,539,114    -    0.45  0.60    2.27  2.43 
2022 14.27  23.31    229,316   4,940,150    -    0.45  0.60    (5.52) (5.38)
2021 15.08  24.67    237,829   5,445,563    -    0.45  0.60    (5.56) (5.42)
2020 15.95  26.12    230,992   5,571,217   8.42   0.45  0.60    (5.85) (5.71)
2019 16.91  27.75    262,035   6,570,245   7.04   0.45  0.60    1.40  1.56 
                             
MFS:                            
Utilities IC                            
2023 47.49  68.38    30,959   1,975,716   3.52   0.45  0.60    (2.69) (2.55)
2022 48.73  70.27    34,994   2,242,697   2.55   0.45  0.60    0.16  0.31 
2021 48.58  70.16    34,638   2,234,792   1.75   0.45  0.60    13.41  13.58 
2020 42.77  61.86    35,226   1,994,044   2.61   0.45  0.60    5.27  5.43 
2019 40.57  58.77    50,860   2,628,366   4.06   0.45  0.60    24.32  24.51 
                             
Mid Cap                            
2023 14.95  15.06    56,223   844,699    -    0.45  0.60    20.60  20.78 
2022 12.40  12.47    51,328   638,660    -    0.45  0.60    (29.12) (29.02)
2021 17.49  17.56    47,242   828,417    -    0.45  0.60    13.43  13.60 
2020 15.42  15.46    32,775   506,089    -    0.45  0.60    35.66  35.87 
2019 11.37  11.38    17,959   204,179    -    0.45  0.60    4.04  10.81 
                             
Research                            
2023 21.94  22.27    152,802   3,390,676   1.06   0.45  0.60    12.34  12.51 
2022 19.50  19.82    169,057   3,341,169   1.88   0.45  0.60    (18.07) (17.95)
2021 23.77  24.20    168,555   4,067,740   0.82   0.45  0.60    10.90  11.07 
2020 21.40  21.82    178,236   3,881,960   2.10   0.45  0.60    12.27  12.44 
2019 19.03  19.43    209,701   4,065,941   1.46   0.45  0.60    27.28  27.47 
                             
Summit:                            
S&P 500                            
2023 290.53  323.50    16,704   5,029,014   1.23   0.45  0.60    25.17  25.36 
2022 231.76  258.44    19,781   4,717,943   1.33   0.45  0.60    (18.83) (18.71)
2021 285.08  318.38    17,703   5,362,000   1.36   0.45  0.60    27.65  27.84 
2020 223.00  249.42    15,720   3,770,304   1.70   0.45  0.60    17.39  17.57 
2019 189.67  212.46    15,952   3,296,915   1.86   0.45  0.60    30.37  30.56 
                             
EAFE Intl.                            
2023 117.25  125.27    8,325   994,145   2.97   0.45  0.60    17.07  17.25 
2022 100.01  107.00    8,775   893,284   3.58   0.45  0.60    (15.09) (14.96)
2021 117.60  126.02    8,944   1,072,528   1.70   0.45  0.60    10.21  10.38 
2020 106.55  114.34    7,976   878,254   3.51   0.45  0.60    7.13  7.29 
2019 99.31  106.73    9,669   989,859   2.76   0.45  0.60    20.54  20.72 

 

 FS-91 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
Summit, continued:                          
S&P MidCap                          
2023 226.75  226.75    1,985   450,192   1.14   0.60  0.60    15.43  15.43 
2022 196.44  196.44    2,997   588,678   0.94   0.60  0.60    (13.85) (13.85)
2021 228.02  228.02    3,267   744,847   0.90   0.60  0.60    23.67  23.67 
2020 184.37  184.37    2,545   469,259   1.19   0.60  0.60    12.65  12.65 
2019 163.68  163.68    2,707   443,041   1.15   0.60  0.60    25.08  25.08 
                             
Growth                            
2023 24.24  24.46    254,290   6,167,343   1.31   0.45  0.60    14.97  15.14 
2022 21.08  21.25    268,718   5,668,051   0.96   0.45  0.60    (15.44) (15.32)
2021 24.93  25.09    299,949   7,482,443   0.98   0.45  0.60    15.18  15.35 
2020 21.65  21.75    326,037   7,060,414   1.61   0.45  0.60    1.54  1.70 
2019 21.32  21.39    354,072   7,549,922   1.35   0.45  0.60    18.51  18.69 
                             
Mod. Growth                          
2023 23.65  23.72    212,318   5,035,710   1.35   0.45  0.60    13.11  13.28 
2022 20.88  20.97    224,780   4,713,041   0.97   0.45  0.60    (15.12) (14.99)
2021 24.56  24.70    256,950   6,346,373   1.00   0.45  0.60    12.97  13.13 
2020 21.71  21.87    262,984   5,749,533   1.61   0.45  0.60    3.13  3.29 
2019 21.01  21.21    305,160   6,467,822   1.47   0.45  0.60    17.86  18.03 
                             
Moderate                            
2023 22.36  22.39    398,465   8,909,844   1.42   0.45  0.60    11.26  11.42 
2022 20.09  20.10    446,055   8,963,628   1.06   0.45  0.60    (14.69) (14.56)
2021 23.52  23.55    517,918   12,198,020   1.04   0.45  0.60    9.41  9.57 
2020 21.46  21.53    562,075   12,098,651   1.68   0.45  0.60    4.73  4.88 
2019 20.46  20.56    608,555   12,506,850   1.55   0.45  0.60    16.32  16.49 
                             
Russell Small Cap                          
2023 130.16  131.59    43,377   5,702,371   0.88   0.45  0.60    15.91  16.08 
2022 112.30  113.36    45,549   5,161,971   0.81   0.45  0.60    (20.99) (20.87)
2021 142.13  143.26    47,626   6,829,468   0.75   0.45  0.60    13.84  14.01 
2020 124.85  125.65    43,347   5,458,806   1.08   0.45  0.60    18.93  19.11 
2019 104.98  105.49    44,767   4,736,122   1.27   0.45  0.60    24.33  24.51 
                             
T. Rowe:                            
Blue Chip                            
2023 55.41  58.41    207,252   11,713,204    -    0.45  0.60    48.40  48.62 
2022 37.34  39.30    238,633   9,072,353    -    0.45  0.60    (38.87) (38.78)
2021 61.08  64.19    272,068   16,954,947    -    0.45  0.60    16.92  17.09 
2020 52.24  54.82    308,667   16,393,910    -    0.45  0.60    33.48  33.68 
2019 39.14  41.01    360,229   14,293,683    -    0.45  0.60    29.11  29.31 

 

 FS-92 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
Morgan Stanley:                          
Emerging Markets                          
2023 16.80  22.59    505,011   10,021,614   1.62   0.45  0.60    11.31  11.47 
2022 15.07  20.30    525,990   9,458,657   0.44   0.45  0.60    (25.53) (25.42)
2021 20.20  27.26    537,834   12,958,010   0.83   0.45  0.60    2.37  2.53 
2020 19.70  26.63    545,151   12,951,553   1.40   0.45  0.60    13.75  13.93 
2019 17.30  23.41    569,631   11,899,629   1.07   0.45  0.60    18.87  19.05 
                             
DFA:                            
Bond                            
2023 11.40  12.33    1,698,961   19,503,244   3.74   0.45  0.60    4.43  4.58 
2022 10.90  11.81    1,493,470   16,447,731   1.41   0.45  0.60    (6.89) (6.75)
2021 11.69  12.68    2,177,063   25,717,492   0.77   0.45  0.60    (1.63) (1.48)
2020 11.87  12.89    1,820,085   21,912,672   0.03   0.45  0.60    0.85  1.00 
2019 11.75  12.79    1,891,468   22,560,225   3.04   0.45  0.60    3.56  3.72 
                             
Small                            
2023 18.23  21.74    660,250   12,263,244   3.27   0.45  0.60    13.43  13.60 
2022 16.05  19.16    683,459   11,263,156   2.63   0.45  0.60    (18.13) (18.01)
2021 19.57  23.41    657,439   13,231,616   2.73   0.45  0.60    13.88  14.05 
2020 17.16  20.56    611,626   10,850,169   2.08   0.45  0.60    8.76  8.92 
2019 15.75  18.90    660,889   10,776,774   3.09   0.45  0.60    23.16  23.34 
                             
Value                            
2023 18.31  20.21    1,231,414   23,373,293   4.55   0.45  0.60    17.16  17.33 
2022 15.60  17.25    1,364,249   22,086,807   3.91   0.45  0.60    (4.03) (3.89)
2021 16.23  17.97    1,472,304   24,880,989   4.06   0.45  0.60    17.41  17.59 
2020 13.81  15.31    1,620,713   23,392,527   2.45   0.45  0.60    (2.35) (2.21)
2019 14.12  15.68    1,578,796   23,354,479   3.90   0.45  0.60    15.17  15.34 
                             
Fixed                            
2023 10.64  10.87    1,393,981   15,052,926   3.69   0.45  0.60    4.36  4.51 
2022 10.19  10.40    1,509,028   15,594,991   1.29   0.45  0.60    (1.74) (1.60)
2021 10.37  10.57    1,495,768   15,720,054   0.01   0.45  0.60    (0.79) (0.64)
2020 10.45  10.64    1,298,378   13,709,366   0.54   0.45  0.60    0.00  0.15 
2019 10.45  10.62    1,412,191   14,895,415   2.33   0.45  0.60    1.90  2.06 
                             
Large                            
2023 44.23  50.49    544,363   24,565,246   2.24   0.45  0.60    10.26  10.43 
2022 40.05  45.80    552,109   22,698,898   2.21   0.45  0.60    (5.44) (5.30)
2021 42.29  48.43    581,076   25,265,655   1.81   0.45  0.60    26.28  26.47 
2020 33.44  38.35    565,194   19,538,181   2.04   0.45  0.60    (1.97) (1.82)
2019 34.06  39.12    636,511   22,386,703   2.34   0.45  0.60    25.03  25.22 

 

 FS-93 
 

5. FINANCIAL HIGHLIGHTS, continued

 

   At December 31     For the Periods Ended December 31 
             Net     Inv.           
   Unit         Assets     Income     Expense      Total 
   Value ($)     Units     ($)     Ratio %     Ratio %     Return % 
   Min   Max                 Min   Max     Min   Max 
DFA, continued:                          
Targeted                            
2023 40.16  42.36    511,707   20,687,815   1.60   0.45  0.60    19.32  19.50 
2022 33.61  35.50    472,981   16,025,375   1.30   0.45  0.60    (4.78) (4.64)
2021 35.24  37.28    526,485   18,700,315   1.50   0.45  0.60    38.85  39.06 
2020 25.34  26.85    532,048   13,605,547   2.06   0.45  0.60    3.36  3.52 
2019 24.48  25.98    493,543   12,207,263   1.70   0.45  0.60    21.83  22.01 
                             
Global                            
2023 18.33  18.51    661,494   12,245,639   2.67   0.45  0.60    14.04  14.21 
2022 16.08  16.21    701,363   11,368,705   1.40   0.45  0.60    (11.49) (11.36)
2021 18.16  18.29    750,980   13,732,292   1.47   0.45  0.60    13.52  13.69 
2020 16.00  16.08    696,142   11,196,335   1.35   0.45  0.60    10.62  10.79 
2019 14.46  14.52    512,633   7,441,364   3.07   0.45  0.60    17.42  17.60 
                             
Equity                            
2023 16.90  17.00    233,783   3,971,608   3.07   0.45  0.60    19.43  19.61 
2022 14.15  14.21    151,422   2,149,931   1.79   0.45  0.60    (14.20) (14.07)
2021 16.49  16.54    153,705   2,540,306   2.52   0.45  0.60    23.63  23.82 
2020 13.34  13.36    80,271   1,071,893   2.42   0.45  0.60    11.49  11.65 
2019 11.96  11.96    36,488   436,511   2.51   0.45  0.60    9.55  10.34 
                             


 FS-94 
 

 

6. CHANGES IN UNITS OUTSTANDING

 

The change in units outstanding for the periods ended December 31, were as follows:

 

      2023   2022
Calvert:        
Balanced        
Units issued   249    62,013 
Units redeemed   (25,496)   (17,819)
Net increase(decrease)   (25,247)   44,194 
           
Mid Cap        
Units issued                            -                            -
Units redeemed   (347)   (4,867)
Net increase(decrease)   (347)   (4,867)
           
Scudder:        
Small Cap        
Units issued                            -                            -
Units redeemed   (2,215)   (181)
Net increase(decrease)   (2,215)   (181)
           
Small Mid Value        
Units issued   48,923    69,371 
Units redeemed   (57,196)   (66,814)
Net increase(decrease)   (8,273)   2,557 
           
Thematic        
Units issued   59,130    80,947 
Units redeemed   (62,073)   (91,279)
Net increase(decrease)   (2,943)   (10,332)
           
Growth        
Units issued   2,490    6,164 
Units redeemed   (1,409)   (7,263)
Net increase(decrease)   1,081    (1,099)
           
Fidelity:        
Overseas IC        
Units issued   43,555    49,429 
Units redeemed   (45,219)   (58,715)
Net increase(decrease)   (1,664)   (9,286)
           
Inv. Grade Bond IC        
Units issued   2,598,793    2,754,334 
Units redeemed   (2,699,384)   (2,854,852)
Net increase(decrease)   (100,591)   (100,518)
           

 

 FS-95 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

      2023   2022
Fidelity, continued:        
Equity Income IC        
Units issued   2,382    18,721 
Units redeemed   (6,215)   (15,954)
Net increase(decrease)   (3,833)   2,767 
           
Growth IC        
Units issued   8,704    18,011 
Units redeemed   (10,028)   (21,146)
Net increase(decrease)   (1,324)   (3,135)
           
High Income IC        
Units issued   201,978    177,988 
Units redeemed   (173,036)   (210,248)
Net increase(decrease)   28,942    (32,260)
           
High Income SC        
Units issued                            -                            -
Units redeemed   (208)   (87)
Net increase(decrease)   (208)   (87)
           
Contrafund IC        
Units issued   35,864    48,754 
Units redeemed   (45,659)   (51,306)
Net increase(decrease)   (9,795)   (2,552)
           
Contrafund SC        
Units issued   104                             -
Units redeemed   (3,964)   (1,404)
Net increase(decrease)   (3,860)   (1,404)
           
Mid Cap IC        
Units issued   30,790    36,264 
Units redeemed   (30,524)   (41,278)
Net increase(decrease)   266    (5,014)
           
Mid Cap SC        
Units issued                            -                            -
Units redeemed   (1,281)   (443)
Net increase(decrease)   (1,281)   (443)
           

 

 FS-96 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

      2023   2022
Fidelity, continued:        
Strategic        
Units issued   1,200,901    1,449,790 
Units redeemed   (1,264,382)   (1,497,136)
Net increase(decrease)   (63,481)   (47,346)
           
Money Market        
Units issued   145,926,705    297,781,215 
Units redeemed   (191,170,122)   (241,600,501)
Net increase(decrease)   (45,243,417)   56,180,714 
           
AIM:        
Dividend        
Units issued   203    484 
Units redeemed   (500)   (367)
Net increase(decrease)   (297)   117 
           
Health        
Units issued                            -   142 
Units redeemed   (280)   (1,715)
Net increase(decrease)   (280)   (1,573)
           
Technology        
Units issued   7,843                             -
Units redeemed   (3)   (2,057)
Net increase(decrease)   7,840    (2,057)
           
Intl. Growth        
Units issued   17,471    19,133 
Units redeemed   (18,198)   (27,989)
Net increase(decrease)   (727)   (8,856)
           
Franchise        
Units issued   3,090    158 
Units redeemed   (2,963)   (2,529)
Net increase(decrease)   127    (2,371)
           
Janus:        
Growth        
Units issued                            -                            -
Units redeemed   (28)   (29)
Net increase(decrease)   (28)   (29)
           

 

 FS-97 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

      2023   2022
Neuberger Berman:        
Mid-Cap        
Units issued                            -                            -
Units redeemed   (14)   (3,213)
Net increase(decrease)   (14)   (3,213)
           
Bond        
Units issued                            -   1 
Units redeemed   (857)   (420)
Net increase(decrease)   (857)   (419)
           
Equity        
Units issued   6,867    5,771 
Units redeemed   (11,715)   (7,437)
Net increase(decrease)   (4,848)   (1,666)
           
Regency        
Units issued   10,226    27,458 
Units redeemed   (12,973)   (25,649)
Net increase(decrease)   (2,747)   1,809 
           
Rydex:        
Nova        
Units issued   20,970    19,168 
Units redeemed   (14,509)   (28,069)
Net increase(decrease)   6,461    (8,901)
           
NASDAQ        
Units issued   12,251    13,274 
Units redeemed   (8,652)   (15,137)
Net increase(decrease)   3,599    (1,863)
           
Precious Metals        
Units issued   762,846    655,803 
Units redeemed   (921,369)   (625,450)
Net increase(decrease)   (158,523)   30,353 
           
Inv. S&P 500        
Units issued   1,880,409    533,019 
Units redeemed   (1,913,508)   (573,081)
Net increase(decrease)   (33,099)   (40,062)
           

 

 FS-98 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

      2023   2022
Rydex, continued:        
Gov. Long Bond        
Units issued   10,710    9,079 
Units redeemed   (9,866)   (28,385)
Net increase(decrease)   844    (19,306)
           
Inverse NASDAQ        
Units issued   857,783    516,892 
Units redeemed   (804,390)   (466,029)
Net increase(decrease)   53,393    50,863 
           
Inv. Long Bond        
Units issued   22,451    35,534 
Units redeemed   (30,075)   (21,233)
Net increase(decrease)   (7,624)   14,301 
           
Russell        
Units issued   469    667 
Units redeemed   (2,129)   (1,208)
Net increase(decrease)   (1,660)   (541)
           
Sector Rotation        
Units issued   31,725    49,523 
Units redeemed   (36,958)   (54,250)
Net increase(decrease)   (5,233)   (4,727)
           
Third Avenue:        
Value        
Units issued   4,170    21,642 
Units redeemed   (8,419)   (20,517)
Net increase(decrease)   (4,249)   1,125 
           
Vanguard:        
Equity Index        
Units issued   2,512,876    1,864,666 
Units redeemed   (2,270,407)   (2,242,608)
Net increase(decrease)   242,469    (377,942)
           
Total Bond        
Units issued   7,858,555    10,844,706 
Units redeemed   (7,182,550)   (12,264,205)
Net increase(decrease)   676,005    (1,419,499)
           

 

 FS-99 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

      2023   2022
Vanguard, continued:        
REIT Index        
Units issued   853,561    860,887 
Units redeemed   (879,341)   (876,328)
Net increase(decrease)   (25,780)   (15,441)
           
Mid-Cap        
Units acquired   577,041    717,126 
Units disposed   (649,192)   (775,283)
Net increase(decrease)   (72,151)   (58,157)
           
Stock Market Index        
Units acquired   272,487    341,326 
Units disposed   (292,116)   (358,427)
Net increase(decrease)   (19,629)   (17,101)
           
Conservative        
Units acquired   70,864    90,297 
Units disposed   (64,014)   (86,084)
Net increase(decrease)   6,850    4,213 
           
Moderate        
Units acquired   95,685    22,490 
Units disposed   (28,390)   (13,757)
Net increase(decrease)   67,295    8,733 
           
Short-Term        
Units acquired   2,221,592    2,782,130 
Units disposed   (2,409,309)   (3,015,821)
Net increase(decrease)   (187,717)   (233,691)
           
International Stock        
Units acquired   336,794    455,252 
Units disposed   (355,118)   (436,975)
Net increase(decrease)   (18,324)   18,277 
           
Global Bond        
Units acquired   88,165    70,432 
Units disposed   (93,948)   (82,356)
Net increase(decrease)   (5,783)   (11,924)
           

 

 FS-100 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

      2023   2022
Vanguard, continued:        
Equity Income        
Units acquired   172,153    294,125 
Units disposed   (189,132)   (293,531)
Net increase(decrease)   (16,979)   594 
           
High Yield Bond        
Units acquired   1,848,929    1,262,478 
Units disposed   (1,716,715)   (1,571,888)
Net increase(decrease)   132,214    (309,410)
           
Growth        
Units acquired   196,927    232,106 
Units disposed   (224,532)   (274,046)
Net increase(decrease)   (27,605)   (41,940)
           
Balanced        
Units acquired   245,687    226,937 
Units disposed   (281,171)   (254,067)
Net increase(decrease)   (35,484)   (27,130)
           
International        
Units acquired   1,198,984    958,429 
Units disposed   (1,153,572)   (1,105,559)
Net increase(decrease)   45,412    (147,130)
           
Diversified        
Units acquired   418,931    480,707 
Units disposed   (453,553)   (514,103)
Net increase(decrease)   (34,622)   (33,396)
           
Small Company Growth        
Units acquired   108,606    120,092 
Units disposed   (126,551)   (139,540)
Net increase(decrease)   (17,945)   (19,448)
           
Allspring:        
Discovery        
Units acquired                            -                            -
Units disposed   (2,210)   (1,536)
Net increase(decrease)   (2,210)   (1,536)
           

 

 FS-101 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

      2023   2022
Allspring, continued:        
Opportunity        
Units acquired                            -                            -
Units disposed   (14)   (397)
Net increase(decrease)   (14)   (397)
           
ProFunds:        
Bull        
Units acquired   144                             -
Units disposed   (3,884)   (52)
Net increase(decrease)   (3,740)   (52)
           
Europe        
Units acquired                            -   539 
Units disposed   (151)   (1,090)
Net increase(decrease)   (151)   (551)
           
Mid-Cap        
Units acquired   154    318 
Units disposed   (278)   (529)
Net increase(decrease)   (124)   (211)
           
NASDAQ-100        
Units acquired   785    170 
Units disposed   (754)   (284)
Net increase(decrease)   31    (114)
           
Small-Cap        
Units acquired   516    382 
Units disposed   (606)   (303)
Net increase(decrease)   (90)   79 
           
Small-Cap Value        
Units acquired   180    314 
Units disposed   (294)   (351)
Net increase(decrease)   (114)   (37)
           
Classic Dow        
Units acquired   222    118 
Units disposed   (396)   (20)
Net increase(decrease)   (174)   98 
           

 

 FS-102 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

      2023   2022
ProFunds, continued:        
Bear        
Units acquired   1,190    1,791 
Units disposed   (2,397)   (727)
Net increase(decrease)   (1,207)   1,064 
           
Short NASDAQ        
Units acquired                            -   26,646 
Units disposed   (24,186)   (5,405)
Net increase(decrease)   (24,186)   21,241 
           
Short Small-Cap        
Units acquired   168    534 
Units disposed   (453)   (477)
Net increase(decrease)   (285)   57 
           
Short Dow        
Units acquired                            -                            -
Units disposed                            -                            -
Net increase(decrease)                            -                            -
           
UltraMid        
Units acquired   638    555 
Units disposed   (1,021)   (172)
Net increase(decrease)   (383)   383 
           
UltraOTC        
Units acquired   127    14 
Units disposed   (74)   (12)
Net increase(decrease)   53    2 
           
UltraSmall        
Units acquired                            -                            -
Units disposed                            -                            -
Net increase(decrease)                            -                            -
           
UltraBull        
Units acquired   486    160 
Units disposed   (257)   (222)
Net increase(decrease)   229    (62)
           

 

 FS-103 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

      2023   2022
ProFunds, continued:        
U.S. Gov. Plus        
Units acquired   708    875 
Units disposed   (498)   (729)
Net increase(decrease)   210    146 
           
Opportunity        
Units acquired                            -   23,556 
Units disposed   (14,103)   (26,014)
Net increase(decrease)   (14,103)   (2,458)
           
Oil & Gas        
Units acquired   563    1,755 
Units disposed   (871)   (2,135)
Net increase(decrease)   (308)   (380)
           
Precious Metals        
Units acquired   2,956    3,175 
Units disposed   (4,696)   (3,077)
Net increase(decrease)   (1,740)   98 
           
Real Estate        
Units acquired   79    621 
Units disposed   (235)   (585)
Net increase(decrease)   (156)   36 
           
High Yield        
Units acquired                            -   593 
Units disposed   (732)   (402)
Net increase(decrease)   (732)   191 
           
Money Market        
Units acquired   428,141    273,731 
Units disposed   (301,378)   (599,896)
Net increase(decrease)   126,763    (326,165)
           
Pimco:        
Commodity        
Units acquired   244,026    337,429 
Units disposed   (264,165)   (322,352)
Net increase(decrease)   (20,139)   15,077 
           

 

 FS-104 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

      2023   2022
Pimco, continued:        
Total Return        
Units acquired   1,433,218    1,979,652 
Units disposed   (1,463,205)   (2,056,331)
Net increase(decrease)   (29,987)   (76,679)
           
Low Duration        
Units acquired                            -                            -
Units disposed   (71)   (3)
Net increase(decrease)   (71)   (3)
           
American Century:        
Mid Cap        
Units acquired   25,363    60,559 
Units disposed   (41,160)   (68,095)
Net increase(decrease)   (15,797)   (7,536)
           
International        
Units acquired   18,202    162,876 
Units disposed   (75,052)   (160,336)
Net increase(decrease)   (56,850)   2,540 
           
Inflation        
Units acquired   68,344    127,630 
Units disposed   (90,678)   (111,715)
Net increase(decrease)   (22,334)   15,915 
           
American Funds:        
IS Growth-Inc        
Units acquired   5,232    1,423 
Units disposed   (2,956)   (908)
Net increase(decrease)   2,276    515 
           
IS Growth        
Units acquired   9,267    4,386 
Units disposed   (3,037)   (4,391)
Net increase(decrease)   6,230    (5)
           
Blue Chip        
Units acquired   12,403    30,270 
Units disposed   (20,264)   (22,625)
Net increase(decrease)   (7,861)   7,645 
           

 

 FS-105 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

      2023   2022
American Funds, continued:        
IS International        
Units acquired   2,058    8,471 
Units disposed   (1,460)   (11,054)
Net increase(decrease)   598    (2,583)
           
IS New World        
Units acquired   34,641    53,037 
Units disposed   (41,409)   (39,233)
Net increase(decrease)   (6,768)   13,804 
           
Franklin Templeton:        
Global Inc.        
Units acquired   335,096    390,026 
Units disposed   (357,582)   (398,539)
Net increase(decrease)   (22,486)   (8,513)
           
MFS:        
Utilities IC        
Units acquired   17,750    21,472 
Units disposed   (21,785)   (21,116)
Net increase(decrease)   (4,035)   356 
           
Mid Cap        
Units acquired   33,974    46,860 
Units disposed   (29,079)   (42,774)
Net increase(decrease)   4,895    4,086 
           
Research        
Units acquired   519,198    556,904 
Units disposed   (535,453)   (556,402)
Net increase(decrease)   (16,255)   502 
           
Summit:        
S&P 500        
Units acquired   10,767    18,320 
Units disposed   (13,844)   (16,242)
Net increase(decrease)   (3,077)   2,078 
           
EAFE Intl.        
Units acquired   3,187    893 
Units disposed   (3,637)   (1,062)
Net increase(decrease)   (450)   (169)
           

 

 FS-106 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

      2023   2022
Summit, continued:        
S&P MidCap        
Units acquired                            -                            -
Units disposed   (1,012)   (270)
Net increase(decrease)   (1,012)   (270)
           
Growth        
Units acquired   105,139    113,634 
Units disposed   (119,567)   (144,865)
Net increase(decrease)   (14,428)   (31,231)
           
Mod. Growth        
Units acquired   41,147    43,415 
Units disposed   (53,609)   (75,585)
Net increase(decrease)   (12,462)   (32,170)
           
Moderate        
Units acquired   1,347,900    1,491,804 
Units disposed   (1,395,490)   (1,563,667)
Net increase(decrease)   (47,590)   (71,863)
           
Russell Small Cap        
Units acquired   49,698    58,696 
Units disposed   (51,870)   (60,773)
Net increase(decrease)   (2,172)   (2,077)
           
T. Rowe:        
Blue Chip        
Units acquired   242,127    402,385 
Units disposed   (273,508)   (435,820)
Net increase(decrease)   (31,381)   (33,435)
           
Morgan Stanley:        
Emerging Markets        
Units acquired   842,030    940,848 
Units disposed   (863,009)   (952,692)
Net increase(decrease)   (20,979)   (11,844)
           
DFA:        
Bond        
Units acquired   2,871,218    3,269,544 
Units disposed   (2,665,727)   (3,953,137)
Net increase(decrease)   205,491    (683,593)
           

 

 

 

 FS-107 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

      2023   2022
DFA, continued:        
Small        
Units acquired   1,066,524    856,163 
Units disposed   (1,089,733)   (830,143)
Net increase(decrease)   (23,209)   26,020 
           
Value        
Units acquired   2,037,665    2,306,750 
Units disposed   (2,170,500)   (2,414,805)
Net increase(decrease)   (132,835)   (108,055)
           
Fixed        
Units acquired   1,776,260    2,117,920 
Units disposed   (1,891,307)   (2,104,660)
Net increase(decrease)   (115,047)   13,260 
           
Large        
Units acquired   796,171    875,273 
Units disposed   (803,917)   (904,240)
Net increase(decrease)   (7,746)   (28,967)
           
Targeted        
Units acquired   575,994    630,098 
Units disposed   (537,268)   (683,602)
Net increase(decrease)   38,726    (53,504)
           
Global        
Units acquired   317,131    309,472 
Units disposed   (357,000)   (359,089)
Net increase(decrease)   (39,869)   (49,617)
           
Equity        
Units acquired   329,781    268,355 
Units disposed   (247,420)   (270,638)
Net increase(decrease)   82,361    (2,283)
           
           

 

 FS-108 
 

 

 

 

 

 

 

AMERITAS LIFE INSURANCE CORP.

 

 

________________

 

 

STATUTORY BASIS FINANCIAL STATEMENTS AS OF

DECEMBER 31, 2023 AND 2022 AND FOR EACH OF THE

THREE YEARS ENDED DECEMBER 31, 2023

SUPPLEMENTAL SCHEDULES AS OF AND FOR THE

YEAR ENDED DECEMBER 31, 2023

AND INDEPENDENT AUDITOR'S REPORT

 

 

 

 

 

 
 

INDEPENDENT AUDITOR'S REPORT

To the Board of Directors

Ameritas Life Insurance Corp.

Lincoln, Nebraska

 

 

 

Opinions

 

We have audited the statutory-basis financial statements of Ameritas Life Insurance Corp. (the "Company"), which comprise the balance sheets - statutory basis as of December 31, 2023 and 2022, and the related summary of operations and changes in capital and surplus - statutory basis and statements of cash flows - statutory basis for each of the three years in the period ended December 31, 2023, and the related notes to the financial statements - statutory basis (collectively referred to as the “statutory-basis financial statements”).

 

Unmodified Opinion on Statutory-Basis of Accounting

 

In our opinion, the accompanying statutory-basis 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 Nebraska Department of Insurance described in Note 1 to the statutory-basis financial statements.

 

Adverse Opinion on Accounting Principles Generally Accepted in the United States of America

 

In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America section of our report, the statutory-basis 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 Opinion

 

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Statutory-Basis 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 audits. 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 Accounting Principles Generally Accepted in the United States of America

 

As described in Note 1 to the statutory-basis financial statements, the statutory-basis financial statements are prepared by the Company using the accounting practices prescribed or permitted by the Nebraska Department of Insurance, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements of the Nebraska Department of Insurance. The effects on the statutory-basis financial statements of the variances between the statutory-basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material and pervasive.

 

 

 1 
 

Responsibilities of Management for the Statutory-Basis Financial Statements

 

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

 

In preparing the statutory-basis 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 that the statutory-basis financial statements are issued.

 

Auditor’s Responsibilities for the Audit of the Statutory-Basis Financial Statements

 

Our objectives are to obtain reasonable assurance about whether the statutory-basis financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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 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 statutory-basis financial statements.

 

In performing an audit in accordance with GAAS, we:

 

  • Exercise professional judgment and maintain professional skepticism throughout the audit.
  • Identify and assess the risks of material misstatement of the statutory-basis 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 statutory-basis 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 statutory-basis 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.

 

Report on Supplemental Schedules

 

Our 2023 audit was conducted for the purpose of forming an opinion on the 2023 statutory-basis financial statements as a whole. The supplemental schedule of investment risk interrogatories, the supplemental summary investment schedule, and the supplemental schedule of selected financial data as of and for the year ended December 31, 2023, are presented for purposes of additional analysis and are not a required part of the 2023 statutory-basis financial statements. These schedules are the responsibility of the Company's management and were derived from and relate directly to the underlying accounting and other records used to prepare the statutory-basis financial statements. Such schedules have been subjected to the auditing procedures applied in our audit of the 2023 statutory-basis financial statements and certain additional procedures, including comparing and reconciling such schedules directly to the underlying accounting and other records used to prepare the statutory-basis financial statements or to

 

 2 
 

 

the statutory-basis financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, such schedules are fairly stated in all material respects in relation to the 2023 statutory-basis financial statements as a whole.

 

/s/ Deloitte & Touche LLP

 

Omaha, Nebraska

March 22, 2024

 

 

 

 3 
 

 

AMERITAS LIFE INSURANCE CORP.
Balance Sheets - Statutory Basis
(in thousands, except shares)
       
  December 31
ADMITTED ASSETS 2023   2022
Bonds $ 11,364,738   $ 11,039,681
Preferred stocks 5,426   13,583
Common stocks 505,230   513,568
Mortgage loans 2,197,964   2,272,619
Real estate:      
Properties occupied by the company 37,427   34,509
Properties held for the production of income 4,666   4,739
Properties held for sale —   672
Cash, cash equivalents, and short-term investments 156,881   42,135
Loans on insurance contracts 734,995   614,038
Other investments 1,279,668   999,463
Total Cash and Invested Assets 16,286,995   15,535,007
       
Investment income due and accrued 133,078   119,326
Deferred and uncollected premiums 116,737   117,912
Net deferred income tax asset 116,402   96,762
Funds held under coinsurance - affiliate 37,096   38,068
Other admitted assets 147,578   133,570
Separate account assets 10,379,450   9,286,022
Total Admitted Assets $ 27,217,336   $ 25,326,667
       
LIABILITIES, CAPITAL AND SURPLUS      
Reserves for life, accident and health policies $ 12,544,439   $ 11,903,359
Deposit-type funds 1,170,436   1,170,856
Reserves for unpaid claims 141,720   157,230
Dividends payable to policyholders 25,603   23,805
Interest maintenance reserve 55,841   67,691
Accrued commissions, expenses and insurance taxes 145,356   129,043
Federal income taxes payable 28,255   6,243
Asset valuation reserve 336,910   264,477
Other liabilities 464,163   418,377
Separate account liabilities 10,379,450   9,286,022
Total Liabilities 25,292,173   23,427,103
       
Common stock, par value $0.10 per share; 25,000,000 shares authorized,      
   issued and outstanding 2,500   2,500
Additional paid in capital 431,449   431,449
Surplus notes 49,976   49,967
Unassigned surplus 1,441,238   1,415,648
Total Capital and Surplus 1,925,163   1,899,564
Total Liabilities, Capital and Surplus $ 27,217,336   $ 25,326,667

 

 

 

 

 

 

 

 

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

 

 4 
 

 

AMERITAS LIFE INSURANCE CORP.
Summary of Operations and Changes in Capital and Surplus - Statutory Basis
(in thousands)
           
  Years Ended December 31
  2023   2022   2021
Premiums and Other Revenue          
Premiums, net $ 3,779,855   $ 3,552,816   $ 3,653,978
Net investment income 622,185   513,947   614,996
Commissions and expense allowances on reinsurance ceded 33,566   30,695   28,594
Modco reinsurance adjustment – affiliate 11,843   (38,186)   1,003
Income from fees associated with separate accounts 63,552   65,818   77,749
Miscellaneous income 62,673   47,868   38,397
Total Premiums and Other Revenue 4,573,674   4,172,958   4,414,717
           
Expenses          
Benefits to policyholders 3,358,782   3,054,105   3,399,801
Change in reserves for life, accident and health policies 636,666   513,353   533,841
Commissions 318,711   283,469   278,055
General insurance expenses 589,251   523,108   490,947
Taxes, licenses and fees 59,330   56,276   52,415
Net transfers from separate accounts (487,201)   (363,372)   (471,335)
Total Expenses 4,475,539   4,066,939   4,283,724
           
Gain from Operations before Dividends, Federal Income Tax          
Expense (Benefit) and Net Realized Capital Gains 98,135   106,019   130,993
Dividends to policyholders 25,630   22,473   24,449
Gain from Operations before Federal Income Tax          
Expense (Benefit) and Net Realized Capital Gains 72,505   83,546   106,544
Federal income tax expense (benefit) 31,114   (143)   17,359
Gain from Operations before Net Realized Capital Gains 41,391   83,689   89,185
Net realized capital gains, net of taxes 32,387   18,027   7,046
Net Income 73,778   101,716   96,231
           
Surplus notes          
Surplus notes amortization 9   9   9
Unassigned surplus          
Change in unrealized gains (losses), net of tax 50,539   (134,296)   147,922
Change in net deferred income taxes 65,216   11,944   17,156
Change in nonadmitted assets (50,383)   (57,361)   10,189
Change in asset valuation reserve (72,433)   30,678   (43,318)
Change in liability for reinsurance in unauthorized companies —   12   (12)
Change in unrecognized actuarial losses on pension, net of tax (250)   4,730   1,234
Amortization of reinsurance gain, net of tax (3,954)   (3,377)   (2,832)
Dissolution of subsidiary (95,745)   (31,756)   —
Cumulative effect of change in accounting principle 58,822   —   —
Net Change in Capital and Surplus 25,599   (77,701)   226,579
           
Capital and Surplus at the Beginning of the Year 1,899,564   1,977,265   1,750,686
Capital and Surplus at the End of Year $ 1,925,163   $ 1,899,564   $ 1,977,265

 

 

 

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

 

 5 
 

 

 

AMERITAS LIFE INSURANCE CORP.
Statements of Cash Flows – Statutory Basis
(in thousands)
           
  Years Ended December 31
  2023   2022   2021
OPERATING ACTIVITIES          
Premium collected net of reinsurance $ 3,783,194   $ 3,507,642   $ 3,659,508
Net investment income received 620,675   525,537   618,329
Miscellaneous income 160,206   145,009   144,399
Benefits paid to policyholders (3,377,550)   (3,025,211)   (3,353,557)
Net transfers from separate accounts 490,322   362,578   491,649
Commissions, expenses and taxes paid (945,340)   (896,024)   (814,118)
Dividends paid to policyholders (23,832)   (24,820)   (27,895)
Federal income taxes received (paid) (17,142)   1,865   (5,845)
Net Cash from Operating Activities 690,533   596,576   712,470
           
INVESTING ACTIVITIES          
Proceeds from investments sold, matured or repaid 1,300,512   1,727,175   2,189,136
Cost of investments acquired (1,605,951)   (2,681,198)   (3,076,389)
Net change in loans on insurance contracts (118,593)   (75,171)   (6,821)
Net Cash from Investing Activities (424,032)   (1,029,194)   (894,074)
           
FINANCING AND MISCELLANEOUS ACTIVITIES          
Change in deposit-type funds (417)   180,346   (9,759)
Proceeds from borrowings 167,500   95,000   —
Redemptions of borrowings (262,500)   —   —
Other miscellaneous, net (56,338)   12,833   7,098
Net Cash from Financing and Miscellaneous Activities (151,755)   288,179   (2,661)
           
Net Change in Cash, Cash Equivalents and Short-Term Investments 114,746   (144,439)   (184,265)
           
Cash, Cash Equivalents and Short-Term Investments          
– Beginning of Year 42,135   186,574   370,839
           
Cash, Cash Equivalents and Short-Term Investments          
– End of Year $ 156,881   $ 42,135   $ 186,574
           
Non-cash transactions from operating, investing and financing activities:          
Conversion of mortgage loans to real estate $ —   $ —   $ 155
Recognized commitments for low income housing investments 18,069   15,000   —
Exchanges of bonds and stocks 16,375   35,502   16,918
Net assets (liabilities) acquired from dissolution of subsidiary (3,296)   375   —
Disposal of investment from dissolution of subsidiary (92,609)   (95)   —

 

 

 

 

 

 

 

 

 

 

 

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

 6 
 

AMERITAS LIFE INSURANCE CORP.

Notes to Financial Statements – Statutory Basis

For the Years Ended December 31, 2023, 2022 and 2021

(in thousands)

 

 

 

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

 

Nature of Operations

Ameritas Life Insurance Corp. (the Company or Ameritas Life), a stock life insurance company domiciled in the state of Nebraska, is a wholly-owned subsidiary of Ameritas Holding Company (AHC), which is a wholly-owned subsidiary of Ameritas Mutual Holding Company (AMHC). AMHC is a mutual insurance holding company. Owners of designated policies issued by the Company have membership interest in AMHC, while contractual rights remain with the Company. AHC also wholly owns Ameritas Investment Partners, Inc. (AIP), an advisor providing investment management services to the Company.

 

The Company wholly-owns Ameritas Life Insurance Corp. of New York (Ameritas-NY), a New York domiciled life insurance subsidiary, Ameritas Investment Company, LLC (AIC), a broker dealer, Variable Contract Agency LLC (VCA), an insurance agency, and Ameritas Advisory Services LLC (AAS), a registered investment advisor. Effective October 31, 2022, BlueStar Retirement Services, Inc. (BlueStar) was liquidated with net assets distributed to Ameritas Life. Effective October 1, 2023, Select Benefits Group, LLC (Dental Select) was liquidated with net assets distributed to Ameritas Life.

 

The Company has established three Closed Blocks of policies: on October 1, 1998, on July 1, 2005, and on July 1, 2007, (collectively, the Closed Blocks). The Company formed these closed blocks of policies, under arrangements approved by the Insurance Departments of the State of Nebraska, Ohio or the District of Columbia, as appropriate, to provide for dividends on policies that were in force on each respective effective date and which were within the classes of individual policies, for which the Company had a dividend scale in effect at those dates. The Closed Blocks were designed to give reasonable assurance to owners of affected policies that the assets will be available to support such policies, including maintaining dividend scales in effect at the effective dates, if the experience underlying such scales continues. The assets, including income thereon, will accrue solely to the benefit of the owners of policies included in each block until the respective block is no longer in effect.

 

The Company’s insurance operations consist of life and health insurance, annuity, group pension and retirement contracts. The Company operates in 49 states and the District of Columbia.

 

Basis of Presentation

The accompanying financial statements of the Company have been prepared in accordance with accounting practices prescribed or permitted by the Nebraska Department of Insurance (the Department). Accounting practices and procedures of the National Association of Insurance Commissioners (NAIC) as prescribed or permitted by the Department comprise a comprehensive basis of accounting (NAIC SAP) other than accounting principles generally accepted in the United States of America (GAAP). The Company follows NAIC SAP and has not been granted any Nebraska prescribed or permitted practices.

 

 7 
 

 

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, (continued)

 

The preparation of financial statements in accordance with statutory accounting practices requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. Material estimates susceptible to significant change include reserves, income taxes, investment values, and other-than-temporary impairments (OTTI).

 

Current NAIC SAP practices vary from GAAP. The more significant variances between NAIC SAP and GAAP are as follows:

 

 

Under NAIC SAP, investments in bonds and redeemable preferred stock are generally reported at amortized cost, with certain NAIC designated securities reported at the lower of amortized cost or fair value and adjustments to fair value reported directly in surplus. Under GAAP, bonds are carried either at amortized cost or fair value based on their classifications. Under GAAP, bonds designated as held-to-maturity based on the Company’s intent and ability to hold to maturity would be carried at amortized cost. Bonds designated as available-for-sale would be carried at fair value with net unrealized holding gains and losses reported in other comprehensive income. Bonds designated as trading would be carried at fair value with net unrealized holding gains and losses reported in income. Redeemable preferred stock would be carried at fair value with changes in unrealized gains and losses recognized in income.

 

Under NAIC SAP, for bonds other than loan-backed and structured securities, if the Company has the intent to sell an impaired security, the cost basis of the security is written down to fair value. If the Company does not have the intent to sell, but it is determined that a decline in fair value is other-than-temporary, the cost basis of the security is written down to fair value. Under GAAP, if the Company has the intent to sell or will more likely than not be required to sell before recovery of its cost basis, the cost basis of the security is written down to fair value. If the Company does not have the intent to sell and it is not more likely than not to be required to sell before recovery of its cost basis, the cost basis must be written down to discounted cash flows with the remaining unrealized loss, if applicable, recognized in other comprehensive income.

 

Under NAIC SAP, all loan-backed and structured securities are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium of such securities using either the retrospective or prospective method, applied consistently by asset class. If the Company has the intent to sell an impaired security, the cost basis of the security is written down to fair value. If the Company does not have the intent to sell and 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 cash flows. Under GAAP, all securities, purchased or retained, that represent beneficial interests in securitized assets, other than high credit quality securities, are adjusted using the prospective method when there is a change in estimated future cash flows. If the Company has the intent to sell or will more likely than not be required to sell before recovery of its cost basis, the cost basis must be written down to fair value. If the Company does not have the intent to sell and it is not more likely than not to be required to sell before recovery of its cost basis, the cost basis must be written down to discounted cash flows through an allowance, with the remaining unrealized loss, if applicable, recognized in other comprehensive income. Changes in the allowance for credit-related impairment are recorded through income.

 

Investments in unaffiliated common stocks are stated at fair value with changes in fair value recognized in unrealized gains (losses) on investments, a component of surplus. Under GAAP, common stocks are carried at fair value with changes in unrealized gains and losses recognized in income.

 

Subsidiaries are included as common stocks carried under the equity method, with the equity in net income (loss) of subsidiaries credited directly to the Company’s unassigned surplus for NAIC SAP. Dividends received from subsidiaries are recorded in net investment income. GAAP requires either consolidation or the equity interest in net income of subsidiaries to be credited to the income statement.

 

 

 8 
 

 

 

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, (continued)

 

Under NAIC SAP, real estate owned and occupied by the Company is included in invested assets, and net investment income and operating expenses includes self-charged rent for the Company’s occupancy of this property. Under GAAP, this property would be classified as an operating asset, and there would be no self-charged rent or expenses.

 

Under NAIC SAP, limited partnerships are stated at the underlying audited GAAP equity value with the change in valuation reflected in unrealized gains (losses), net of tax in unassigned surplus. Income distributions from the limited partnerships are reported as net investment income when declared, to the extent that they are not in excess of the undistributed accumulated earnings, in the statement of operations and changes in capital and surplus on a NAIC SAP basis. Under GAAP, the change in valuation as well as the income distributions are reflected in either net investment income or as a realized capital gain or loss depending on the underlying investments.

 

Under NAIC SAP, investments in low income housing tax credits are carried under amortized cost method. Under GAAP, such investments are accounted for under the equity method or the proportional amortization method, depending upon the characteristics of such investments.

 

The asset valuation reserve (AVR) and interest maintenance reserve (IMR) are established only on the statutory financial statements.

 

Under NAIC SAP, derivative instruments that meet the criteria of an effective hedge are valued and reported in a manner that is consistent with the hedged asset or liability and embedded derivatives are not accounted for separately from the host contract. Also, the change in fair value of open derivative instruments that do not meet the criteria of an effective hedge is recorded as an unrealized gain or loss in surplus. Under GAAP, all derivatives are reported on the balance sheets at fair value. Changes in fair value of derivatives, to the extent they are effective at offsetting hedged risk are recorded through either income or equity, depending on the nature of the hedge. An embedded derivative within a contract that is not clearly and closely related to the economic characteristics and risks of the host contract is accounted for separately from the host contract and reported at fair value.

 

Acquisition costs, such as commissions and other costs directly related to acquiring new business, are charged to operations as incurred under NAIC SAP. Under GAAP, acquisition costs are capitalized and charged to operations as the revenues or expected gross profits are recognized.

 

Under NAIC SAP, identifiable intangible assets are not recorded.

 

Under NAIC SAP, amounts that represent revenue for services to be provided in future periods are reported as revenue when received. Under GAAP, amounts would be reported as a liability and amortized into revenue using the same assumptions used to amortize deferred policy acquisition costs.

 

Certain assets designated as nonadmitted are excluded from the accompanying Balance Sheets – Statutory Basis and are charged directly to unassigned surplus. Under GAAP, these assets would be included in the balance sheets, net of any valuation allowance.

 

Under NAIC SAP, Universal Life and Annuity revenues consist of the entire premium received and benefits represent the death benefits paid and the change in policy reserves. Under GAAP, revenues are comprised of contract charges and fees which are recognized when assessed against the policyholder account balance.

 

Policy reserves for Life, Accident and Health policies are based on methods prescribed by the NAIC, which include mortality and interest assumptions without consideration for lapses or withdrawals. Under GAAP, policy reserves are based on the Company’s estimates of morbidity, mortality, lapse, and interest assumptions.

 

Under NAIC SAP, policyholder dividends are recognized when declared. Under GAAP, policyholder dividends would be for dividends that have accrued as of the financial statement date based on the best available estimate of the amount of dividends to be paid.

 

 9 
 

 

 

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, (continued)

 

Under NAIC SAP, reinsurance agreements must transfer risk from the ceding company to the reinsurer in order to receive the reinsurance accounting treatment. If the terms of the agreement violate the risk transfer criteria, the agreement shall be accounted for as deposit accounting. Under NAIC SAP, reserves and unpaid claim liabilities ceded to reinsurers have been reported as reductions to the related reserves. To qualify for risk transfer and be accounted for as reinsurance under GAAP, an evaluation must be made to determine whether the contract indemnifies against insurance risk. If risk transfer requirements are not met, the reinsurance agreement is considered a financing arrangement and deposit accounting is required. Under deposit accounting, assets received by the assuming entity are offset in the balance sheet by recording a liability. The initial obligation is based on the consideration paid or received less any explicitly identified premiums or fees to be retained by the insurer or reinsurer. Deposit assets and liabilities are reported on a gross basis, unless the right of offset exists. There is no initial impact on the income statement from the recording of the transaction under deposit accounting.

 

Certain reinsurance agreements which receive reinsurance accounting treatment under NAIC SAP qualify as business combinations under GAAP. In such transactions under GAAP, all acquired assets and liabilities, including identifiable intangible assets and goodwill, are measured and recorded at fair value as of the date of acquisition and reinsurance recoverables are recorded as an asset.

 

Under NAIC SAP, a liability for reinsurance balances is provided for unsecured policy reserves ceded to reinsurers unauthorized by license to assume such business. Changes to those amounts are credited or charged directly to unassigned surplus. Under GAAP, no such amounts are recorded.

 

Reinsurance recoverables on unpaid losses are reported as a reduction of policy reserves, while under GAAP, they are reported as an asset.

 

Under NAIC SAP, the difference between the employee benefit plan’s assets and the employee benefit obligation is reflected as an asset or liability, with an offset to unassigned surplus and the excess recorded as a nonadmitted asset. Prior service costs are recorded as a component of unassigned surplus, net of tax. Under GAAP, the difference between the plan’s assets and the benefit obligation is reflected as an asset or liability, with an offset to other comprehensive income. Prior service costs are recorded as a component of other comprehensive income, net of tax.

 

NAIC SAP requires an amount be recorded for deferred taxes as a component of surplus, however, there are limitations as to the amount of deferred tax assets that may be reported as admitted assets that are not applicable under GAAP. Under NAIC SAP, both the valuation allowance determination and admission calculation are made based on a separate company basis.

 

Under SAP, surplus notes are reported as surplus and interest cannot be accrued until written approval has been received from the Department. Under GAAP, surplus notes are included in liabilities including interest.

 

Under NAIC SAP, cash, cash equivalents and short-term investments represent cash balances and investments with remaining maturities when purchased of one year or less. Under GAAP, cash and cash equivalents include investments with remaining maturities when purchased of three months or less. Under GAAP, short-term investments are reported as a component of fixed maturity or equity investment balances.

 

Under NAIC SAP, the amount of goodwill recorded as an admitted asset is subject to limitation and is amortized into earnings over a period not to exceed 10 years. Goodwill under GAAP is not amortized into earnings and annually analyzed for impairment which would be reported as a recognized loss into earnings.

 

Comprehensive income and its components are not presented under NAIC SAP.

 

 10 
 

 

 

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, (continued)

 

Significant statutory accounting practices are as follows:

 

Investments

Investments are stated at amounts prescribed by the NAIC which are as follows: bonds not backed by other loans and SVO identified investments are stated at amortized cost and loan-backed bonds and structured securities are stated at amortized cost using the interest method including anticipated prepayments at the date of purchase. Significant changes in estimated cash flows from the original purchase assumptions are reviewed monthly. Prepayment assumptions for loan-backed bonds and structured securities are obtained from broker dealer survey values or internal estimates based on characteristics of similar products, consistent with the current interest rate and economic environment. The retrospective adjustment method is used to value all loan-backed and structured securities and non-agency structured securities of high credit quality. The prospective method is used to value structured securities with significant changes in cash flow, or of lower credit quality. All bonds with a NAIC designation of 6 are stated at the lower of amortized cost or fair value.

 

Investments in preferred stocks are carried at cost if the NAIC designation is RP3 or P3 and above. Preferred stocks with NAIC designations of RP4 or P4 and below are carried at the lower of cost or fair value.

 

Common stocks are generally reported at fair value. Investments in stocks of insurance subsidiaries are carried at audited statutory equity and non-insurance subsidiaries and affiliates in which the Company has an interest of 10% or more are carried equal to the Company’s proportionate share of the audited GAAP-basis equity after the date of acquisition. The change in the carrying value is generally recorded as a change in unrealized gains (losses) on investments, a component of unassigned surplus. The value of affiliated subsidiaries was $93,405 and $115,309 at December 31, 2023 and 2022, respectively. The Federal Home Loan Bank (FHLB) common stock is carried at cost.

 

Mortgage loans are stated at the unpaid principal balance less unamortized discounts or plus unamortized premiums. The Company records a reserve for losses on mortgage loans as part of the AVR and mortgage loans are written down if deemed impaired.

 

Real estate occupied by the Company and held for the production of income is reported at depreciated cost. Real estate held for sale is reported at the lower of amortized cost or fair value. Depreciation expense is determined by the straight-line method. Real estate owned and occupied by the Company is included in investments, and investment income and operating expenses include rent for the Company’s occupancy of its owned properties.

 

In 2015, the Company entered into a ten year, 4% non-recourse loan of $15,500 on a real estate property with scheduled maturities of $518 and $11,388 during the years ended December 31, 2024 and 2025, respectively. The Company recorded an encumbrance on this real estate property up to its carrying value with the remaining amount classified as borrowings included in other liabilities in the Balance Sheets - Statutory Basis. At December 31, 2023 and 2022, the amount of borrowing over the carrying value of real estate property was $2,789 and $4,496, respectively.

 

Cash and cash equivalents consist of cash-in-bank, cash-in-transit, money market mutual funds and all highly liquid securities with remaining maturity of three months or less. Money market mutual funds are stated at amortized cost which approximates fair value. Short-term investments presented in the Balance Sheets – Statutory Basis consist of all investments that have a maturity date of one year or less at the date acquired and are stated at amortized cost, which approximates fair value.

 

Loans on insurance contracts are stated at the aggregate unpaid principal balance. The excess of the unpaid balance of the loan over the cash surrender value is considered a nonadmitted asset.

 

 

 11 
 

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, (continued)

 

The carrying amount of limited partnerships, limited liability companies, and joint ventures reflects the underlying audited GAAP equity of these investments. Income from these investments is recognized when declared, to the extent that they are not in excess of the undistributed accumulated earnings. Unrealized gains and losses resulting from differences between the cost and carrying amount of these investments are credited or charged directly to unassigned surplus. These investments are recorded in other investments in the Balance Sheets – Statutory Basis. The recorded carrying value of affiliated limited liability companies are as follows:

  2023 2022
AIC $ 12,018 $ 11,351
VCA 1 476 443
AAS 1 266 758
Dental Select — 64,535
Total $ 12,760 $ 77,087

1 VCA and AAS did not have GAAP audits performed, so the Company nonadmits these assets.

 

Other investments also include collateral loans, surplus debentures, and low-income housing tax credits carried under the amortized cost method. Other-than-temporary impairments of $3,256 and $1,633, and $1,265 were recorded as realized losses during 2023, 2022, and 2021, respectively. The Company has no investments in joint ventures, partnerships, or limited liability companies that exceeds 10% of its admitted assets.

 

The Company purchases and sells futures contracts to hedge against principal losses on variable annuity contracts with a guaranteed lifetime withdrawal benefit rider attached. Futures contracts are a standardized contractual agreement to buy or sell a particular financial instrument at a predetermined price in the future. The gains and losses of futures contracts are derived from the daily movement of the underlying market. These gains and losses are settled in cash through a daily variation margin. The Company also sells futures contracts on certain equity indices with expiration dates of less than 6 months as well as buys and sells futures contracts on certain Treasury notes and bonds, ranging in maturities between 1 and 30 years, with expiration dates of less than 6 months. The Company does not receive cash on the initial purchase or sale of the futures contracts, but will receive or pay cash daily based on the movement of the underlying index or Treasury notes. The net notional amount of the futures contracts at December 31, 2023 and 2022 was $1,094 and $28,994, respectively.

 

The Company is required to post collateral to the brokering bank for futures. To comply with this requirement, the Company usually posts short-term Treasury bills with the bank. The bank acts as an intermediary to the futures transactions and takes initial margins from both parties to limit the counterparty risk. The collateral (Treasury bills) is recorded in bonds on the Balance Sheets – Statutory Basis as an asset by the Company. The book/adjusted carrying value of the collateral recorded at December 31, 2023 and 2022 was $26,657 and $26,562, respectively.

 

Since futures contracts are not considered an effective hedge, the total variation margin on open contracts is reflected in the change in unrealized gains (losses), net of tax in the Summary of Operations and Changes in Capital and Surplus – Statutory Basis. The total variation margin on closed futures contracts is reflected in net investment income in the Summary of Operations and Changes in Capital and Surplus – Statutory Basis.

 

 

 

 

 12 
 

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, (continued)

 

The Company purchased and sold interest rate swaps to hedge against principal losses on variable annuity contracts with a guaranteed lifetime withdrawal benefit rider attached. These swaps were closed in 2021. The total variation margin on open swaps was reflected in the change in unrealized gains (losses), net of tax in the Summary of Operations and Changes in Capital and Surplus - Statutory Basis. The total variation margin on closed interest rate swaps was reflected in net investment income in the Summary of Operations and Changes in Capital and Surplus - Statutory Basis.

 

The Company purchases and sells call options (Over the Counter (OTC) index call options) to hedge insurance contracts whose credited interest is linked to returns on multiple equity indices based on a formula which applies participation rates and/or cap rates to the returns in the indices. Call options are contracts, which give the option purchaser the right, but not the obligation, to buy securities at a specified price during a specified period. The OTC index call options expire monthly until December 23, 2025. The Company paid and received initial fees (the option premium) to enter the option contracts. The purchased OTC index call options give the Company the right to receive cash at settlement if the closing Index value is above the strike price, while the written OTC index call options require the Company to pay cash at settlement if the closing Index value is above the strike price. The Company sells OTC index call options to effectively offset the proceeds the Company would receive on its purchased OTC index call options that represent a return above the amount that would be credited to insurance contracts electing a capped return in the Index. These proceeds do not result in income to the Company because the hedged insurance contracts would be credited interest for an equivalent amount.

 

The Company purchases and sells Exchange traded index call options (Exchange traded index call options) based on multiple equity indices to hedge equity index annuity contracts and universal life contracts. The Company has purchased and written Exchange traded index call options that expire through December 20, 2024. The Company paid and received initial fees (the option premium) to enter the option contracts. The purchased Exchange traded index call options give the Company the right to receive cash at settlement if the closing index value is above the strike price, while the written Exchange traded index call options require the Company to pay cash at settlement if the closing index value is above the strike price.

 

The Company purchases and sells Exchange traded put options (Equity put options) based on multiple equity indices to hedge variable annuity contracts with a guaranteed lifetime withdrawal benefit rider attached. Put options are contracts, which give the option purchaser the right, but not the obligation, to sell securities at a specified price during a specified period. The Company has no outstanding purchased and written Exchange traded put options as of December 31, 2023 and 2022. The Company paid and received initial fees (the option premium) to enter the option contracts. The purchased Equity put options give the Company the right to receive cash at settlement if the closing index value is below the strike price, while the written Equity put options require the Company to pay cash at settlement if the closing index value is below the strike price. If the closing index value is above the strike price, the Equity put options expire without value.

 

The Company is exposed to credit-related losses in the event of nonperformance by counter-parties to the options. To minimize this risk, the Company only enters into private contracts with counter-parties having Standard & Poor's credit ratings of AA- or above or listed contracts guaranteed by the Chicago Board Options Exchange. The credit exposure is limited to the fair value of the net call options of $164,907 and $54,710 at December 31, 2023 and 2022, respectively. The Company is not required to post collateral to counterparty banks for bilateral options due to the nature of positions taken. For listed contracts, the Company may be required to post collateral with the clearing (prime) broker depending on the positions taken. To comply with this requirement, the Company usually posts short-term Treasury bills with the bank. The collateral (Treasury bills) is recorded in bonds on the Balance Sheets – Statutory Basis as an asset by the Company. The book/adjusted carrying value of the collateral recorded at December 31, 2023 and 2022 was $0 and $3,904, respectively. The notional amount of the options at December 31, 2023 and 2022 was $1,708,473 and $1,162,631, respectively.

 

Starting in 2020, the Company uses OTC foreign currency swaps to reduce the risk from fluctuations in foreign currency exchange rates associated with holding foreign currency denominated investments. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, cash flows in one currency for cash flows in another currency. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. When the currency swaps meet specific criteria, they may be designated as accounting hedges and accounted for as foreign currency fair value hedges. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship.

 

 13 
 

 

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, (continued)

 

The Company manages its exposure to credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable master netting agreements (MNAs) and obtaining collateral where appropriate. The Company uses MNAs for OTC derivative transactions that permit either party to net payments due for transactions and collateral is either pledged or obtained when certain predetermined exposure limits are exceeded. As of December 31, 2023, the Company had no collateral pledged to or from counterparties. The Company has not incurred any losses on derivative financial instruments due to counterparty nonperformance.

 

The options (OTC index call options, Exchange traded index call options and Equity put options) are carried at their fair value and reflected in other investments and other liabilities in the Balance Sheets – Statutory Basis. Changes in the fair value of expired options are reflected in net investment income and changes in the fair value of open options are reflected in change in unrealized gains (losses), net of tax in the Summary of Operations and Changes in Capital and Surplus – Statutory Basis. Changes in the fair value of open options that do not meet the requirements of an effective hedge are reflected in change in unrealized gains (losses), net of tax in the Summary of Operations and Changes in Capital and Surplus – Statutory Basis.

 

The foreign currency swaps used in effective hedges are carried in a manner consistent with the hedged asset or liability. Foreign currency swaps hedging bonds are carried at amortized cost and reflected in other investments and other liabilities in the Balance Sheets - Statutory Basis. Changes in the carrying value of open foreign currency swaps as a result of exchange rate changes are reflected in change in unrealized gains (losses), net of tax in the Summary of Operations and Changes in Capital and Surplus - Statutory Basis. Interest income received from open foreign currency swaps is reflected in net investment income. Changes in the carrying value of closed foreign currency swaps is reflected in net investment income.

 

Foreign currency swaps not used in an effective hedge are carried at fair value and reflected in other investments and other liabilities in the Balance Sheets - Statutory Basis. Changes in the fair value of open foreign currency swaps are reflected in change in unrealized gains (losses), net of tax in the Summary of Operations and Changes in Capital and Surplus - Statutory Basis. Changes in the fair value of closed foreign currency swaps and interest income associated with the currency swaps are reflected in net investment income.

 

The credit exposure is limited to the fair value of the options and foreign currency swaps included in other investments in the Balance Sheets - Statutory Basis as follows:

 

  Fair Values of Derivative Instruments
  Asset Derivatives
  Notional Amount Fair Value
  2023 2022 2023 2022
Derivatives Not Designated as Hedging Instruments:        
OTC index call option contracts owned $ 3,070,551 $ 2,326,454 $ 232,186 $ 70,244
OTC index call option contracts written (1,352,371) (1,173,605) (123,527) (33,324)
Exchange traded index call option contracts owned 1,157,176 1,144,236 167,068 52,356
Derivatives Designated as Fair Value Hedges:        
Foreign currency swaps - gross asset — 56,300 — 4,484
Total asset derivatives $ 2,875,356 $ 2,353,385 $ 275,727 $ 93,760

 

 14 
 

 

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, (continued)

 

The fair value of the related derivative liabilities included in other liabilities in the Balance Sheets - Statutory Basis are as follows:

  Fair Values of Derivative Instruments
  Liability Derivatives
  Notional Amount Fair Value
  2023 2022 2023 2022
Derivatives Not Designated as Hedging Instruments:        
Exchange traded index call option contracts written $ 1,166,883 $ 1,134,454 $ 110,820 $ 34,566
Derivatives Designated as Fair Value Hedges:        
Foreign currency swaps - gross liability 158,753 — 1,651 —
Total liability derivatives $ 1,325,636 $ 1,134,454 $ 112,471 $ 34,566

 

The amounts recognized in net investment income and change in unrealized gains (losses) in the Summary of Operations and Changes in Capital and Surplus - Statutory Basis for options, futures, interest rate swaps and foreign currency swaps are as follows:

  Amount Recognized
  2023 2022 2021
Derivatives Not Designated as Hedging Instruments:      
OTC index call option contracts - closed $ (15,207) $ (25,586) $ 34,925
Exchange traded index call option contracts - closed 6,913 (20,651) 33,671
Equity put option contracts - closed (16) 784 (1,584)
Futures contracts - closed (36,224) (41,108) (30,960)
Interest rate swap contracts - closed — — (22,723)
Derivatives Designated as Fair Value Hedges:      
Foreign currency swaps - closed 1,172 — —
Foreign currency swaps - open — 938 298
Total recognized in net investment income $ (43,362) $ (85,623) $ 13,627
Derivatives Not Designated as Hedging Instruments:      
OTC index call option contracts - open $ 37,212 $ (40,835) $ (9,980)
Exchange traded index call option contracts - open 30,723 (29,296) (4,323)
Futures contracts - open 8,028 3,886 (1,185)
Interest rate swap contracts - open — — 11,668
Foreign currency swaps - open — — 50
Derivatives Designated as Fair Value Hedges:      
Foreign currency swaps - open 2,832 4,880 898
Total recognized in change in unrealized gains (losses) $ 78,795 $ (61,365) $ (2,872)

 

Investment income consists primarily of interest and dividends. Interest is recognized on an accrual basis and dividends are recorded as earned at the ex-dividend date. Interest income on loan-backed and structured securities is determined on the effective yield method based on estimated principal repayments. Accrual of income is suspended for bonds and mortgage loans that are in default or when the receipt of interest payments is in doubt. Realized capital gains and losses are determined on a specific identification basis and recorded in operations.

 

 15 
 

 

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, (continued)

 

Accrued interest more than 180 days past due deemed collectible on mortgage loans in default is nonadmitted. All other investment income due and accrued, excluding loans on insurance contracts, with amounts over 90 days past due is nonadmitted. There were no accrued interest amounts excluded from unassigned surplus at December 31, 2023 and 2022.

 

If the Company has the intent to sell an impaired security, the cost basis of the security is written down to fair value. For bond investments other than loan-backed and structured securities, if the Company does not have the intent to sell, but it is determined that a decline in fair value is other-than-temporary, the cost basis of the security is written down to fair value. For loan-backed and structured security investments, if the Company does not have the intent to sell and 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. All write downs are recorded as a realized loss. For unaffiliated common stocks and other investments carried at fair value, unrealized gains and losses resulting from differences between the cost and carrying amount of these investments are credited or charged directly to unassigned surplus.

 

Nonadmitted Assets

In accordance with NAIC SAP, certain assets, designated as nonadmitted assets, are excluded from the Balance Sheets – Statutory Basis and are charged directly to surplus. Nonadmitted assets consist primarily of a portion of deferred income tax assets, loans on insurance contracts, prepaid expenses, advances to agents, unearned annualized commissions, furniture and equipment, application software, other investment income that is over 90 days past due, unaudited non-insurance subsidiaries and other assets not specifically identified as an admitted asset within NAIC SAP. Total nonadmitted assets were $231,533 and $181,150 at December 31, 2023 and 2022, respectively.

 

Furniture and Equipment

Electronic data processing (EDP) equipment at cost of $12,117 and $10,793 and operating software at cost of $994 and $5,625 are carried at cost less accumulated depreciation at December 31, 2023 and 2022, respectively. The admitted value of the Company’s EDP and operating software is limited to three percent of capital and surplus. The admitted portion at cost, net of accumulated depreciation of $10,678 and $13,920, was $2,433 and $2,498, respectively and is recorded in other admitted assets in the Balance Sheets – Statutory Basis at December 31, 2023 and 2022. EDP equipment and operating software are depreciated using the straight line method over the lesser of the estimated useful life of the related asset or three years.

 

An impairment of an asset is recorded as a charge to operations if both of the following conditions are met: information available prior to issuance of the statutory basis financial statements indicates that it is probable that an asset has been impaired at the date of the statutory basis financial statements and the amount of loss can be reasonably estimated.

 

Leasehold improvements are carried at cost less accumulated amortization. The Company provides for amortization of leasehold improvements using the straight-line method over the lesser of the useful life of the asset or the remaining original lease term, excluding options or renewal periods. Leasehold improvements are generally amortized over three to twenty years. Non-operating software is depreciated over the lesser of its estimated useful life or five years. Other furniture and equipment are depreciated using the straight line method over the estimated useful lives of the assets. Furniture and fixtures are generally depreciated over three to ten years. Depreciation expense on depreciable assets of $8,098, $5,379 and $5,218 was recorded in general insurance expenses in the Summary of Operations and Changes in Capital and Surplus – Statutory Basis for the years ended December 31, 2023, 2022 and 2021, respectively.

 16 
 

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, (continued)

 

Reserves for Life, Accident and Health Policies, and Deposit-type Funds

Life policy reserves provide amounts adequate to discharge estimated future obligations in excess of estimated future premiums on policies in force. Reserves for traditional, flexible premium and variable life insurance are computed principally by using the Commissioners' Reserve Valuation Method (CRVM) or the Net Level Premium Method with assumed interest rates and mortality as prescribed by regulatory authorities, or the PBR method under which the company holds the higher of the Net Premium reserve, the Deterministic reserve or the Stochastic reserves which considers a wide range of future economic conditions using justified company experience factors, such as mortality, lapses and expenses with prescribed rule-based requirements and regulatory guardrails. Reserves for fixed annuities are calculated using the Commissioners’ Annuity Reserve Valuation Method (CARVM) with appropriate statutory interest and mortality assumptions. Reserves for variable annuities are calculated in conformance with section VM-21 of the Valuation Manual (VM-21). VM-21 requires the determination of reserves based on the combination of a conditional tail expectation 70 (CTE 70) stochastic amount and a possible additional standard projection amount. The additional standard projection amount is based on the Prescribed Projections Amount (PPA). Both the CTE 70 stochastic amount and PPA are based on a wide range of future economic conditions. The CTE 70 reflects prudent estimate assumptions and the PPA uses prescribed assumptions in place of certain prudent estimate assumptions.

 

Tabular interest, tabular less actual reserves released and tabular cost for all life contracts are determined based upon statutory regulations. Other policy reserves are established and maintained on the basis of published mortality tables using assumed interest rates and valuation methods as prescribed by the Department.

 

Reserves for unpaid individual accident and health disability contracts claims, the present value of amounts not yet due on claim reserves is a first principles-type calculation based on a seriatim listing of open disability claims. All termination rate and interest discounting assumptions adhere to minimum NAIC Standards. The adequacy of these reserves is demonstrated annually using follow-up studies as defined in the Actuarial Standard of Practice No. 5, Section 3.6. In addition, the present value of future payments relative to all incurred but unreported claims is based on historical study using past monthly earned premiums times the planned loss ratio times the anticipated percent of claims outstanding, and expressed as a percentage times tabular reserves, including a provision for litigated claims.

 

Reserves for unpaid group accident and health long-term disability contracts are a tabular calculation based on a seriatim listing of open disability claims. Issued and incurred claims are generated based on the 2012 Group Long-term Disability Table (GLTD). A modification is made for claims in the first two years from disablement.

 

Reserves for deposit-type funds are equal to deposits received and interest credited to the benefit of policyholders, less withdrawals that represent a return to the policyholder. For the determination of tabular interest to deposit-type funds, the valuation interest rate, which varies by issue year, is multiplied by the average funds in force during the year subject to such valuation interest rate.

 

Reserve for Unpaid Claims

The reserves for unpaid group and individual dental and vision claims are estimated using historical claim lags, with adjustments based on the current level of pending/unprocessed claims, and relative to the historical levels during the time period used to generate claim lag factors. The reserves for unpaid claims for group and individual dental and vision insurance includes claims in course of settlement and incurred but not reported claims. Claim adjustment expenses corresponding to the unpaid claims are accounted for by adding an additional load to the reserve for unpaid claims. To the extent the ultimate liability differs from the amounts recorded, such differences are reflected in operations when additional information becomes known.

 

Reserves for unpaid life claims include claims reported and unpaid and claims not yet reported, which is estimated based upon historical experience. As such amounts are necessarily estimates, the ultimate liability will differ from the amount recorded and will be reflected in operations when additional information becomes known.

 

 17 
 

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, (continued)

 

Dividends to Policyholders

Dividends are provided based on dividend formulas approved by the Board of Directors of the Company in accordance with actuarially determined dividend scales. Dividends to policyholders are reflected in the Summary of Operations and Changes in Capital and Surplus – Statutory Basis at amounts estimated to be paid or credited to policyholders during the subsequent year on the policy anniversary dates. Dividends to policyholders also include reinsurance assumed business. A portion of the Company’s business has been issued on a participating basis. The amount of insurance in force on direct individual life participating policies was $12,296,748 or 10.5% and $11,278,165 or 10.3% of the individual life policies in force as of December 31, 2023 and 2022, respectively.

 

Accrued Separate Account Transfers

Accrued separate account transfers primarily consist of the amount of policyholder account values over modified reserves used in the separate account, such as the use of CARVM and CRVM.

 

Asset Valuation and Interest Maintenance Reserves

The AVR is a required appropriation of unassigned surplus to provide for possible losses that may occur on certain investments of the Company. The reserve is computed based on holdings of all investments and realized and unrealized gains and losses, other than those resulting from interest rate changes. Changes in the reserve are charged or credited to unassigned surplus.

 

The IMR is calculated based on the prescribed methods developed by the NAIC. Realized gains and losses, net of tax, resulting from interest rate changes on fixed income investments are deferred and credited to this reserve. These gains and losses are then amortized into investment income over what would have been the remaining years to maturity of the underlying investment. Amortization included in net investment income was $9,711, $9,977 and $9,487 for 2023, 2022 and 2021, respectively.

 

Recognition of Premium Revenues and Related Costs

Life premiums are recognized as revenue when premiums are due. Annuity considerations are recognized as income when received. Health premiums are earned ratably over the terms of the related insurance and reinsurance contracts or policies. Consideration received on deposit-type funds, which do not contain life contingencies, is recorded directly to the related liability.

 

Expenses incurred in connection with acquiring new insurance business, including acquisition costs such as sales commissions, are charged to operations as incurred.

 

Reinsurance

Reinsurance premiums and claims are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums, benefits, reserves for life, accident and health policies, and reserves for unpaid claims are reported net of reinsured amounts. In a modified coinsurance arrangement, the ceding company retains the assets with respect to the policies reinsured and also retains and records the associated reserves. The assuming company does not reflect the assets or reserves in its balance sheet.

 

Surplus Notes

The Surplus Notes (the Notes) are included in capital and surplus. Interest on the Notes is not accrued or paid until written approval from the Department has been received.

 

Income Taxes

The Company files a life/non-life consolidated tax return with AMHC and AMHC eligible affiliates. The Company’s income tax allocation is based upon a written agreement which uses a modified separate return method. The modified separate return method adjusts the separate return method so that the net operating losses (or other current or deferred tax attributes) are characterized as realized by the Company when those attributes are realized (or realizable) by the consolidated group.

 

 

 18 
 

 

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, (continued)

 

The Company is subject to tax-related audits in the normal course of operations. The Company records a contingency reserve for tax-related matters when it is more likely than not that a liability has been incurred and the amount of the loss can be reasonably estimated. The tax contingency reserves are evaluated based upon the facts and circumstances that exist at each reporting measurement. Adjustments may result from new information, resolution of an issue with the taxing authorities or changes in laws or regulations. There was no reserve for tax related contingencies at December 31, 2023 and 2022.

 

The Company is subject to taxation in the United States and various states. In 2018, the Internal Revenue Service (IRS) started a limited scope examination of the AMHC consolidated federal income tax return for tax year 2015. Additionally, the 2017 net operating loss carryback claim filed amending tax years 2015 and 2016 are currently under examination as part of the Joint Committee on Taxation process. This examination has reached the IRS Appeals process and any potential tax changes required are not expected to be material. Due to the IRS examinations, the Company has extended the statute of limitations for tax years 2015 and 2016. The Company is no longer subject to examinations by tax authorities for years before 2015.

 

Separate Accounts

Separate account assets and liabilities reported in the accompanying financial statements represent funds that are separately administered, principally for variable annuity, variable life and group annuity contracts and for which the contract holders, rather than the Company, bear the investment risk. Separate account contract holders have no claim against the assets of the general account of the Company. Investment income and gains and losses from these accounts accrue directly to contract holders and are not included in the accompanying financial statements. Net asset values and changes in net asset values of separate account assets generally accrue directly to the contract holders and are not included in the Company’s revenues and expenses or surplus.

 

Vulnerability due to Certain Concentrations

The Company operates in a business environment which is subject to various risks and uncertainties. Such risks and uncertainties include, but are not limited to, interest rate risk, market risk, credit risk and legal and regulatory changes, including policies and related impacts from pandemics or other public health issues (such as the COVID-19 pandemic). Furthermore, the market for deferred annuities and interest-sensitive life insurance is enhanced by the tax incentives available under current law. Any legislative changes that lessen these incentives are likely to negatively impact the demand for these products. The demand for life insurance products that are used to address a customer’s estate planning needs may be impacted to the extent any legislative changes occur to the current estate tax laws.

 

Accounting Pronouncements

In August 2023, the NAIC issued Interpretation 23-01 which provides optional, limited-time guidance allowing the admittance of net negative (disallowed) IMR up to 10% of adjusted capital and surplus. The guidance was effective immediately and will be automatically nullified on January 1, 2026. There was no impact in 2023 to the Company from the adoption of this guidance.

 

In August 2023, the NAIC issued Statement of Statutory Accounting Principles (SSAP) No. 26R - Bonds and SSAP No. 43R - Asset-Backed Securities which prescribe a principles-based definition for identifying whether security structures should be reported as long-term bonds. The amended guidance provides criteria for distinguishing bonds from other types of investments. The guidance is effective on January 1, 2025. The Company is currently evaluating the impact of this guidance on its financial position and results of operations.

 

In December 2023, the NAIC issued SSAP No. 2R - Cash, Cash Equivalents, Drafts, and Short-Term Investments to further restrict the investments that are permitted for cash equivalent or short-term reporting. The guidance is effective on January 1, 2025. The Company is currently evaluating the impact of this guidance on its financial position and results of operations.

 

Accounting Changes

During 2023, the Company changed its method of accounting for distributions received from joint ventures, partnerships, and limited liability companies to include fair value adjustments in addition to accumulated earnings in order to better align with the U.S. GAAP equity of the investee. The change resulted in a decrease in net unrealized capital gains (losses), less capital gains tax of $58,822 as of December 31, 2023. There was no impact to prior period Capital and Surplus.

 

 19 
 

 

NOTE 2 - BUSINESS COMBINATIONS AND GOODWILL

Statutory Merger

Effective October 1, 2023, Dental Select was merged into the Company with the Company assuming net liabilities of $3,296. In the Summary of Operations and Changes in Capital and Surplus - Statutory Basis, the Company recorded a charge of $92,822 for the write-off of embedded goodwill and reversed unrealized losses of $28,074, net of taxes, for a net charge to surplus of $64,748.

 

Effective October 31, 2022, BlueStar was merged into the Company with its net assets of $375 distributed to the Company. The Company recognized a realized gain of $279 and an unrealized loss of $31,756 in the Summary of Operations and Changes in Capital and Surplus - Statutory Basis as a result of this transaction. The unrealized loss represented the write-off of embedded goodwill.

 

NOTE 3 - INVESTMENTS

 

Bonds

The cost or amortized cost and estimated fair value of bonds by type are summarized as follows:

December 31, 2023
  Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
U.S. Government $ 90,094 $ 77 $ (11,261) $ 78,910
All other governments 24,629 725 (295) 25,059
Special revenue and special assessment obligations and        
all non-guaranteed obligations of agencies and authorities        
of governments and their political subdivisions 175,210 10 (15,950) 159,270
Hybrid securities 5,137 — (997) 4,140
Industrial and miscellaneous (unaffiliated) 11,068,016 119,797 (943,336) 10,244,477
Total bonds $ 11,363,086 $ 120,609 $ (971,839) $ 10,511,856

 

 

December 31, 2022
  Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
U.S. Government $ 107,791 $ 78 $ (12,551) $ 95,318
All other governments 2,057 — (106) 1,951
Special revenue and special assessment obligations and        
all non-guaranteed obligations of agencies and authorities        
of governments and their political subdivisions 202,913 7 (18,350) 184,570
Hybrid securities 5,137 — (1,083) 4,054
Industrial and miscellaneous (unaffiliated) 10,726,302 29,632 (1,267,076) 9,488,858
Total bonds $ 11,044,200 $ 29,717 $ (1,299,166) $ 9,774,751

 

At December 31, 2023, the amortized cost of bonds was increased by $1,652 and was reduced by $4,519 at December 31, 2022 as a result of cumulative fair value adjustments on ETF mutual fund bonds and bonds rated NAIC 6 to derive the carrying amounts of bonds in the Balance Sheets - Statutory Basis of $11,364,738 and $11,039,681, respectively.

 

 20 
 

 

NOTE 3 - INVESTMENTS, (continued)

 

The cost or amortized cost and estimated fair value of bonds at December 31, 2023 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

  Cost or Amortized Cost Fair Value
Due in one year or less $ 225,234 $ 223,383
Due after one year through five years 1,653,198 1,610,811
Due after five years through ten years 2,802,135 2,644,081
Due after ten years 6,522,531 5,885,569
Bonds with multiple repayment dates 159,988 148,012
Total bonds $ 11,363,086 $ 10,511,856

 

Proceeds from the sales of bonds were $308,442, $588,433, and $297,045 for the years ended December 31, 2023, 2022 and 2021, respectively.

 

Realized capital gains (losses) are as follows:

  Years Ended December 31
  2023 2022 2021
Bonds:      
Gross realized capital gains on sales $ 7,070 $ 12,908 $ 10,740
Gross realized capital losses on sales (9,335) (4,606) (1,350)
Net realized capital gains (losses) on sales (2,265) 8,302 9,390
Other, including impairments and net gain on dispositions other than sales (5,148) (641) 198
Total bonds (7,413) 7,661 9,588
Preferred stocks (618) — 2,050
Common stocks 33,983 3,221 361
Mortgage loans (2,040) 110 424
Real estate 2,285 55 4,501
Other investments 12,092 20,424 9,696
Realized capital gains before federal income taxes and transfer to IMR 38,289 31,471 26,620
Realized capital gains (losses) transferred to IMR (2,708) 8,726 12,980
Federal income tax expense 8,610 4,718 6,594
Net realized capital gains $ 32,387 $ 18,027 $ 7,046

 

The Company has entered into an agreement with the FHLB of Topeka to enhance investment yields through investment spread strategies and to provide for liquidity needs, if a future need for immediate liquidity arises. The agreement provides for advances (lines of credit) up to $842,353 to the Company in return for the purchase of asset-based membership stock equal to 0.1% of assets, with a $500 maximum, plus an additional activity-based stock purchase equal to 4.5% of the advances less the amount of the asset-based membership stock held. As part of the agreement, $25,360 and $29,714 in stock was owned at December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the Company did not have any FHLB membership stock, listed above, eligible for redemption.

 

 21 
 

 

NOTE 3 - INVESTMENTS, (continued)

 

The amount of FHLB capital stock held, in aggregate, and classified as of December 31 is as follows:

  General Account
  2023 2022
Membership stock - class A $ 326 $ 304
Membership stock - class B 24,339 27,816
Excess stock 695 1,594
Aggregate total $ 25,360 $ 29,714
Actual or estimated borrowing capacity as determined by the insurer $ 842,353 $ 896,068

 

As of December 31, 2023 and 2022, the Company had $700,000 of funding agreements outstanding with the FHLB. There are $1,307,617 and $1,352,091 of bonds and mortgage loans pledged as collateral at December 31, 2023 and 2022, respectively. The assets and reserves related to the funding agreements are reported in the general account as the Company's strategy is to increase investment income to the general account from the investment spread strategy. The related reserves of $702,943 and $700,967 are reported in deposit-type funds on the Balance Sheets – Statutory Basis as of December 31, 2023 and 2022, respectively.

 

The values of the bonds and mortgage loans pledged as collateral to the FHLB and the total aggregate borrowing by the Company as of December 31 is as follows:

 

  General Account
  2023 2022
Fair value $ 1,189,376 $ 1,205,998
Carrying value 1,307,617 1,352,091
Aggregate total borrowing - funding agreements 700,000 700,000
Aggregate total borrowing - lines of credit — 95,000

 

The maximum amount of collateral pledged to the FHLB during the years ended December 31 is as follows:

  General Account
  2023 2022
Fair value $ 1,214,466 $ 1,303,738
Carrying value 1,354,135 1,352,091
Amount borrowed at time of maximum collateral - funding agreements 700,000 700,000
Amount borrowed at time of maximum collateral - lines of credit 117,500 95,000

 

 

There are prepayment penalties on the Company's funding agreements.

 

 22 
 

 

 

NOTE 3 - INVESTMENTS, (continued)

 

Restricted Assets

 

A detailed summary of restricted assets (including pledged assets) primarily bonds, common stock, mortgage loans and cash at cost or amortized cost is as follows:

 

December 31, 2023
      Gross Restricted     Percentage
Restricted Asset Category Total Current Year Total Prior Year Increase/ (Decrease) Total Nonadmitted Restricted Total Current Year Admitted Restricted Gross Restricted to Total Assets Admitted Restricted to Total Admitted Assets
FHLB capital stock $ 25,360 $ 29,714 $ (4,354) $ — $ 25,360 0.092 % 0.093 %
Bonds on deposit with states 145,050 145,434 (384) — 145,050 0.528 % 0.533 %
Pledged collateral to FHLB              
  (including assets backing              
  funding agreements) 1,307,617 1,352,091 (44,474) — 1,307,617 4.764 % 4.804 %
Pledged as collateral not              
  captured in other categories:              
    Derivatives 26,657 30,466 (3,809) — 26,657 0.097 % 0.098 %
Other restricted assets:              
  Policy Loans reinsurance              
    assumed 109,179 114,674 (5,495) — 109,179 0.398 % 0.401 %
  Bonds and short-term              
    investments from              
    reinsurance assumed * 937,979 977,515 (39,536) — 937,979 3.417 % 3.446 %
Total restricted assets $ 2,551,842 $ 2,649,894 $ (98,052) $ — $ 2,551,842 9.296 % 9.375 %

 

December 31, 2022
      Gross Restricted     Percentage
Restricted Asset Category Total Current Year Total Prior Year Increase/ (Decrease) Total Nonadmitted Restricted Total Current Year Admitted Restricted Gross Restricted to Total Assets Admitted Restricted to Total Admitted Assets
FHLB capital stock $ 29,714 $ 14,841 $ 14,873 $ — $ 29,714 0.116 % 0.117 %
Bonds on deposit with states 145,434 134,407 11,027 — 145,434 0.570 % 0.574 %
Pledged collateral to FHLB              
  (including assets backing              
  funding agreements) 1,352,091 1,270,608 81,483 — 1,352,091 5.301 % 5.339 %
Pledged as collateral not              
  captured in other categories:              
    Derivatives 30,466 33,998 (3,532) — 30,466 0.119 % 0.120 %
Other restricted assets:              
  Policy Loans reinsurance              
    assumed 114,674 117,034 (2,360) — 114,674 0.450 % 0.453 %
  Bonds and short-term              
    investments from              
    reinsurance assumed * 977,515 1,104,770 (127,255) — 977,515 3.832 % 3.860 %
Total restricted assets $ 2,649,894 $ 2,675,658 $ (25,764) $ — $ 2,649,894 10.388 % 10.463 %

* Includes investment income due and accrued

 

 23 
 

 

NOTE 3 - INVESTMENTS, (continued)

 

An aging of unrealized losses on the Company’s investments in bonds and unaffiliated stocks were as follows:

 

  December 31, 2023
  Less than 12 Months 12 Months or More Total
  Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses
Bonds:            
U.S. Governments $ 9,760 $ (477) $ 69,104 $ (10,784) $ 78,864 $ (11,261)
All other governments 18,886 (211) 1,913 (84) 20,799 (295)
Special revenue and special assessment            
obligations and all non-guaranteed            
obligations of agencies and authorities            
of governments and their political            
subdivisions 14,121 (645) 145,149 (15,305) 159,270 (15,950)
Hybrid securities 2,002 (493) 2,138 (504) 4,140 (997)
Industrial and miscellaneous (unaffiliated) 3,006,036 (112,607) 6,556,903 (830,729) 9,562,939 (943,336)
Total bonds 3,050,805 (114,433) 6,775,207 (857,406) 9,826,012 (971,839)
Preferred stocks 1,457 — 3,308 (450) 4,765 (450)
Common stocks 165,162 (1,021) 33,929 (2,135) 199,091 (3,156)
Total $ 3,217,424 $ (115,454) $ 6,812,444 $ (859,991) $ 10,029,868 $ (975,445)

 

  December 31, 2022
  Less than 12 Months 12 Months or More Total
  Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses
Bonds:            
U.S. Governments $ 61,025 $ (3,086) $ 34,111 $ (9,465) $ 95,136 $ (12,551)
All other governments 1,950 (106) — — 1,950 (106)
Special revenue and special assessment            
obligations and all non-guaranteed            
obligations of agencies and authorities            
of governments and their political            
subdivisions 149,055 (9,310) 35,372 (9,040) 184,427 (18,350)
Hybrid securities — — 4,055 (1,083) 4,055 (1,083)
Industrial and miscellaneous (unaffiliated) 5,704,567 (524,996) 3,118,809 (742,080) 8,823,376 (1,267,076)
Total bonds 5,916,597 (537,498) 3,192,347 (761,668) 9,108,944 (1,299,166)
Preferred stocks 4,486 (415) 7,866 (773) 12,352 (1,188)
Common stocks 170,215 (3,811) 26,802 (3,574) 197,017 (7,385)
Total $ 6,091,298 $ (541,724) $ 3,227,015 $ (766,015) $ 9,318,313 $ (1,307,739)

 

The unrealized losses related to bonds in 2023 and 2022 reported above were partially due to liquidity and market-related considerations. The Company considers various factors when considering if a decline is other-than-temporary, including the size of the unrealized loss, deterioration in ratings, industry conditions or factors related to a geographic area that are negatively affecting a security, violation of loan covenants, overall financial condition of the issuer and the Company’s intention and ability to sell or hold the security for a period of time sufficient to allow for a recovery in value. The Company has determined that such declines were temporary in nature.

 

 24 
 

 

 

 

NOTE 3 - INVESTMENTS, (continued)

 

The Company considers various factors when considering if a decline in the fair value of a common stock security is other-than-temporary, including but not limited to the magnitude of the unrealized loss; the volatility of the investment; analyst recommendations, price targets and NAIC ratings; opinions of the Company’s investment managers; market liquidity; and the Company’s intentions to sell or ability to hold the investments until recovery. Based on an evaluation of these factors, the Company did not record any realized losses for other-than-temporary impairments on unaffiliated common stocks during 2023, 2022 and 2021.

 

The Company’s bond and short-term investment portfolios are predominantly comprised of investment grade securities. At December 31, 2023 and 2022, bonds at book/adjusted carrying value totaling $468,893 and $495,262, respectively, (4.2% and 4.5%, respectively, of the total bond and short-term portfolios) are considered below investment grade. Securities are classified as below investment grade by utilizing rating criteria established by the NAIC. During 2023, 2022 and 2021, the Company recorded realized losses for other-than-temporary impairments on bonds of $5,122, $1,841 and $1,556, respectively. There were no loan-backed and structured security investments with recognized other-than-temporary impairments in 2023.

 

 

 

A summary of loan-backed and structured security investments included in industrial and miscellaneous (unaffiliated) with unrealized losses for which an other-than-temporary impairment has not been recognized is as follows:

    December 31, 2023
  Unrealized Less Than 12 Months Unrealized 12 Months or More
  Amortized Fair Unrealized Amortized Fair Unrealized
  Cost Value Losses Cost Value Losses
Structured securities   $ 118,063   $ 116,133   $ (1,930)   $ 2,082,070   $ 1,924,754   $ (157,316)
                         

 

    December 31, 2022
  Unrealized Less Than 12 Months Unrealized 12 Months or More
  Amortized Fair Unrealized Amortized Fair Unrealized
  Cost Value Losses Cost Value Losses
Structured securities   $ 1,912,652   $ 1,770,507   $ (142,145)   $ 620,400   $ 536,410   $ (83,990)
                         

 

Mortgage Loans

For the commercial mortgage loans held by the Company, debt service coverage ratio (DSCR) is considered a key credit quality indicator for loans that are income dependent while loan to value and borrower financial strength are considered key credit quality indicators for borrower-occupied loans. Debt service coverage ratios compare a property’s net operating income to the borrower’s principal and interest payments. Loan to value and debt service coverage ratios are updated annually or as warranted by economic conditions or impairment considerations.

 

Debt service coverage ratios for income dependent mortgage loans are summarized as follows:

  December 31
  2023 2022
DSCR distribution    
Below 1.0 $ 76,167 $ 55,620
1.0 - 1.2 178,633 215,154
1.2 - 1.5 371,247 430,061
Greater than 1.5 1,559,250 1,518,463
Total $ 2,185,297 $ 2,219,298

 

Mortgage loans with a DSCR below 1.0 that are not considered impaired primarily relate to instances where the borrower has the financial capacity to fund the revenue shortfalls from the properties for the foreseeable future, the decrease in cash flows is considered temporary, or there are other risk mitigating factors.

 

 25 
 

 

NOTE 3 - INVESTMENTS, (continued)

 

Loan to value for borrower-occupied commercial real estate mortgage loans is summarized as follows:

  December 31
  2023 2022
Loan to value    
Below 60% $ 10,558 $ 11,990
60-75% 2,109 2,441
Above 75% — 999
Total $ 12,667 $ 15,430

 

The Company sold the residential loan portfolio during 2023. The loss on the sale was not material.

 

An aging analysis of the commercial loans held by the Company is summarized as follows:

  December 31
  2023 2022
Recorded investment (all)    
Current $ 2,197,964 $ 2,234,728
30-59 days past due — —
60-89 days past due — —
90-179 days past due — —
180+ days past due — —
Accruing Interest 180+ Days Past Due    
Recorded investment — —
Interest accrued — —
Participant or co-lender in a mortgage loan agreement    
Recorded investment 568 1,287

 

At December 31, 2023, the average size of an individual commercial mortgage loan was $2,033. For commercial mortgage loans, the Company’s policy is to obtain a first mortgage lien and to require a loan to value ratio of 75% or less at acquisition. The Company's policy for commercial loans is to recognize due and accrued interest income on impaired loans if deemed collectible. Due and accrued interest income deemed collectible on impaired loans over 180 days past due is nonadmitted. As of December 31, 2023, the maximum and minimum rates of interest in the Company’s mortgage loan portfolio were 8.99% and 4.50% for commercial mortgage loans.

 

In 2023 and 2022, the Company had 44 and 81, respectively, commercial loans acquired or with additions to existing loans at the maximum and minimum rates of interest of 8.99% and 7.50%, respectively, and 4.50% and 2.85%, respectively, totaling $158,851 and $341,346, respectively. Commercial mortgage loans are evaluated individually for impairment. The Company had no impairments for commercial mortgage loans during 2023, 2022 and 2021. The Company had no investment in impaired loans with credit losses as of December 31, 2023 and 2022. There were no mortgage loans derecognized as a result of foreclosure during 2023 or 2022.

 

 

 

 

 

 

 26 
 

 

 

NOTE 3 - INVESTMENTS, (continued)

 

Real Estate

There were 2 commercial real estate sales with total gain recognized of $2,285 for the year ended December 31, 2023. There was 1 residential real estate sale with total gain recognized of $55 for the year ended December 31, 2022. The gains recorded on sales are recognized in net realized capital gains (losses) on the Summary of Operations and Changes in Capital and Surplus – Statutory Basis.

 

There were no residential real estate properties classified as held for sale for the year ended December 31, 2023. There were no commercial real estate properties classified as held for sale for the year ended December 31, 2023. One commercial real estate property with a recorded value of $672 was classified as held for sale for the year ended December 31, 2022. Commercial real estate was either sold or classified as held for sale based on the Company’s intent to dispose of certain property via sale. Sales are usually within one year, based on economic factors, but may be extended per other executed agreements.

 

The Company recognizes real estate property impairments as other-than-temporary and records them as realized losses. The Company had no real estate impairments for the years ended December 31, 2023 and 2022. Fair value for impaired commercial real estate was determined by valuations based on internal and/or external appraisals. The real estate impairment losses due to decreases in property value are recognized in net realized capital gains (losses) on the Summary of Operations and Changes in Capital and Surplus – Statutory Basis.

 

Low-Income Housing Tax Credit Investments

The Company has up to 13 remaining years of unexpired tax credits and is required to hold these investments for up to 17 years. During 2023 and 2022, the Company recognized $10,474 and $8,309, respectively, of low income housing tax credits (LIHTC) and other tax benefits. The Company’s investment in LIHTC recognized in the Balance Sheets - Statutory Basis in other investments was $77,319 and $68,042 and in other liabilities was $34,500 and $31,918 for the years ended December 31, 2023 and 2022, respectively. The Company has made unconditional commitments to provide additional capital contributions in low income housing partnerships of $16,789, $10,778, $4,349, $746, and $132, in 2024, 2025, 2026, 2027, and 2028, respectively, and $1,706 thereafter. No property is currently subject to any regulatory review. The Company had no investment in LIHTC that exceeded 10% of its admitted assets. The Company recognized no impairment losses related to LIHTC at December 31, 2023 and 2022. The Company recognized no write-down or reclassification resulting from the forfeiture or ineligibility of tax credits at December 31, 2023 and 2022.

 

Offsetting and Netting of Assets and Liabilities

Call options and foreign currency swaps that are included in other investments and other liabilities on the Balance Sheets - Statutory Basis and qualified for offsetting and netting are as follows:

  December 31, 2023   December 31, 2022
  Gross Amount Recognized Amount Offset Net Amount Presented on Financial Statements   Gross Amount Recognized Amount Offset Net Amount Presented on Financial Statements
Assets:              
Derivatives - call options $ 232,186 $ 123,527 $ 108,659   $ 70,244 $ 33,324 $ 36,920
Derivatives - foreign              
currency swaps 2,961 2,961 —   5,805 1,321 4,484
               
Liabilities:              
Derivatives - call options $ 123,527 $ 123,527 $ —   $ 33,324 $ 33,324 $ —
Derivatives - foreign              
currency swaps 4,612 2,961 1,651   1,321 1,321 —

 

 

 27 
 

 

NOTE 3 - INVESTMENTS, (continued)

 

Net Investment Income

 

Major categories of net investment income by class of investment are summarized below.

      Years Ended December 31
      2023 2022 2021
Income:      
  Bonds $ 499,408 $ 419,734 $ 400,928
  Preferred stocks 490 586 528
  Common stocks 8,382 7,427 7,905
  Mortgage loans 98,441 104,071 107,955
  Real estate1 14,261 14,515 15,187
  Loans on insurance contracts 33,583 28,034 30,169
  Short-term investments 3,385 763 73
  Derivatives (43,362) (85,623) 13,627
  Other investments 50,021 64,070 84,268
  Amortization of interest maintenance reserve 9,711 9,977 9,487
  Gross investment income 674,320 563,554 670,127
  Total investment expenses 52,135 49,607 55,131
    Net investment income $ 622,185 $ 513,947 $ 614,996

1Includes amounts for the occupancy of company-owned property of $8,302, $8,541 and $8,541 in 2023, 2022, and 2021, respectively.

 

The Company had securities sold, redeemed or otherwise disposed of as a result of a callable feature (including make whole call provisions) during 2023 and 2022, of which the total number of CUSIPs sold, disposed or otherwise redeemed was 9 and 32, respectively. The aggregate amount of investment income generated as a result of prepayment penalties and/or acceleration fees collected from called securities was $721 and $2,704, respectively.

 

Fair Value Measurements

Included in various investment related lines in the financial statements are certain financial instruments carried at fair value. Other financial instruments are periodically measured at fair value, such as when impaired, or, for certain bonds and preferred stocks when carried at the lower of cost or market. The fair value of an asset is the amount at which that asset could be bought or sold in a current transaction between willing parties, that is, other than in a forced or liquidation sale.

 

Fair values are based on quoted market prices when available. When market prices are not available, fair value is generally estimated using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality (matrix pricing). In instances where there is little or no market activity for the same or similar instruments, the Company estimates fair value using methods, models and assumptions that management believes market participants would use to determine a current transaction price. These valuation techniques involve some level of management estimation and judgment which becomes significant with increasingly complex instruments or pricing models. Where appropriate, adjustments are included to reflect the risk inherent in a particular methodology, model or input used.

 

The Company’s financial assets and liabilities carried at fair value have been classified, for disclosure purposes, based on a hierarchy defined by Fair Value Measurements as defined under NAIC SAP. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset’s classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows:

 

Level 1 – Values are unadjusted quoted prices for identical assets or liabilities in active markets accessible at the measurement date.

 

 

 28 
 

 

NOTE 3 - INVESTMENTS, (continued)

 

Level 2 – Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads and yield curves.

 

Level 3 – Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset at the reporting date.

 

Net asset value (NAV) – Separate account assets are measured at fair value using the NAV per share (or its equivalent) practical expedient and have not been classified in the fair value hierarchy.

 

The following tables provide information about the Company’s financial assets and liabilities measured and reported at fair value or NAV:

          December 31, 2023
          Level 1 Level 2 Level 3 Net Asset Value Total
Assets at fair value/net asset value          
  Bonds          
    Industrial and miscellaneous (unaffiliated) $ — $ — $ 116 $ — $ 116
        Total bonds — — 116 — 116
  Common stock          
    Industrial and miscellaneous (unaffiliated) 385,715 — — — 385,715
        Total common stocks 385,715 — — — 385,715
  Other investments 12,590 — — — 12,590
    Derivative assets          
      Exchange traded index call options 167,068 — — — 167,068
      Over the counter index call options — 108,659 — — 108,659
      Foreign currency swaps — — — — —
        Total other investments 179,658 108,659 — — 288,317
  Separate account assets — — — 10,379,450 10,379,450
Total assets at fair value/net asset value $ 565,373 $ 108,659 $ 116 $ 10,379,450 $ 11,053,598
                   
Liabilities at fair value          
  Derivative liabilities          
    Exchange traded index call options (written) $ 110,820 $ — $ — $ — $ 110,820
    Foreign currency swaps — 1,651 — — 1,651
Total liabilities at fair value $ 110,820 $ 1,651 $ — $ — $ 112,471

 

 

 

 

 

 

 

 

 

 

  

 

 29 
 

NOTE 3 - INVESTMENTS, (continued)

 

          December 31, 2022
          Level 1 Level 2 Level 3 Net Asset Value Total
Assets at fair value/net asset value          
  Bonds          
    Industrial and miscellaneous (unaffiliated) $ — $ — $ 3 $ — $ 3
        Total bonds — — 3 — 3
  Common stock          
    Industrial and miscellaneous (unaffiliated) 368,545 — — — 368,545
        Total common stocks 368,545 — — — 368,545
  Other investments 11,373 — — — 11,373
    Derivative assets          
      Exchange traded index call options 52,356 — — — 52,356
      Over the counter index call options — 36,920 — — 36,920
      Foreign currency swaps — 4,484 — — 4,484
        Total other investments 63,729 41,404 — — 105,133
  Separate account assets — — — 9,286,022 9,286,022
Total assets at fair value/net asset value $ 432,274 $ 41,404 $ 3 $ 9,286,022 $ 9,759,703
                   
Liabilities at fair value          
  Derivative liabilities          
    Exchange traded index call options (written) $ 34,566 $ — $ — $ — $ 34,566
Total liabilities at fair value $ 34,566 $ — $ — $ — $ 34,566

 

The valuation techniques used to measure the fair values by type of investment in the above table are as follows:

 

Level 1 – Financial Assets and Liabilities

These assets and liabilities include actively-traded exchange-listed common stocks, mutual funds, exchange traded call and put options and exchange traded call and put options (written). Unadjusted quoted prices for these securities are provided to the Company by independent pricing services. Derivative asset and liability valuations are based on quoted prices in active markets for identical securities. Exchange traded call options and equity put options and written exchange traded call options and written equity put options are classified as Level 1.

 

Level 2 – Financial Assets and Liabilities

The Company's Level 2 assets includes bonds, OTC index call options and foreign currency swaps. Prices are based on other observable inputs, including quoted prices for similar assets/liabilities. The Company used broker quotes which are corroborated to the market for the monthly valuation of the index call options and foreign currency swaps. For the index call options, the broker quotes use the S&P Dividend Yield and Implied Volatility inputs in the Black Scholes Model that is tailored to the remaining term of each call option. For the foreign currency swaps, the broker quotes use models that rely on inputs such as basis curves and currency spot rates that are observable for substantially the full term of the contract. In addition, the Company corroborates the broker quotes to Bloomberg and to actual trades.

 

Level 3 - Financial Assets

The Company classified asset-backed securities and residential mortgage-backed securities carried at fair value due to NAIC 6 ratings in Level 3 at December 31, 2023 and 2022. The primary inputs to valuation include reported trades, bids, benchmark yields, credit spreads, estimated cash flows, prepayment speeds, and collateral performance. Collateral performance is analyzed for each security and includes delinquency rates, loss severity rates and prepayment speeds. These securities were classified in Level 3 due to the price being based on uncorroborated broker quotes, unobservable market inputs or internal valuations.

 

 30 
 

 

 

NOTE 3 - INVESTMENTS, (continued)

 

NAV - Financial Assets

Separate account assets represent NAVs as a practical expedient received from fund managers who stand ready to transact at the quoted values. The funds in the separate account assets are considered open-end mutual funds, meaning that the fund is ready to redeem its shares at any time and offers its shares for sale to the public, either through retail outlets or through institutional investors continuously. For institutional funds, NAVs are received daily from fund managers, and the managers stand ready to transact at these quoted amounts. The Company, on behalf of the contract holders, transacts in these funds on a daily basis as part of the separate account trading activity. There are no unfunded commitments in the separate account assets.

 

There were no material transfers into or out of Level 3 during the years ended December 31, 2023 and 2022.

 

The tables below reflect the fair values or NAV and book/adjusted carrying values of all admitted assets and liabilities that are financial instruments excluding those accounted for under the equity method. The Company had no financial instruments that were not practicable to calculate fair value. The Company had no investments measured using NAV instead of fair value in which the investment may be sold below NAV or significant restrictions in the liquidation of the investment held at NAV. The fair values are also categorized into the three-level fair value hierarchy as described previously:

 

December 31, 2023
    Fair Value Book/Adjusted Carrying Value Level 1 Level 2 Level 3 Net Asset Value
Assets:            
Bonds $ 10,511,856 $ 11,364,738 $ — $ 6,799,237 $ 3,712,619 $ —
Preferred stocks 5,348 5,426 — 5,348 — —
Common stocks 411,825 411,825 385,715 25,360 750 —
Mortgage loans 2,036,216 2,197,964 — — 2,036,216 —
Cash, cash equivalents and short-term            
  investments 156,881 156,881 156,881 — — —
Loans on insurance contracts 638,489 734,995 — — 638,489 —
Other investments 463,757 450,525 190,545 187,037 86,175 —
Investment income due and accrued 133,078 133,078 133,078 — — —
Separate account assets — 10,379,450 — — — 10,379,450
Total financial assets $ 14,357,450 $ 25,834,882 $ 866,219 $ 7,016,982 $ 6,474,249 $ 10,379,450
               
Liabilities:            
Deposit-type funds $ 1,167,885 $ 1,170,436 $ — $ — $ 1,167,885 $ —
Borrowings 2,853 2,853 — — 2,853 —
Derivative liabilities 112,471 112,471 110,820 1,651 — —
Separate account liabilities — 10,379,450 — — — 10,379,450
Total financial liabilities $ 1,283,209 $ 11,665,210 $ 110,820 $ 1,651 $ 1,170,738 $ 10,379,450

 

 31 
 

NOTE 3 - INVESTMENTS, (continued)

December 31, 2022
    Fair Value Book/Adjusted Carrying Value Level 1 Level 2 Level 3 Net Asset Value
Assets:            
Bonds $ 9,774,751 $ 11,039,681 $ — $ 6,438,160 $ 3,336,591 $ —
Preferred stocks 12,946 13,583 — 12,946 — —
Common stocks 398,259 398,259 368,545 29,714 — —
Mortgage loans 2,062,363 2,272,619 — — 2,062,363 —
Cash, cash equivalents and short-term            
  investments 42,135 42,135 42,135 — — —
Loans on insurance contracts 576,187 614,038 — — 576,187 —
Other investments 242,065 250,660 66,570 98,690 76,805 —
Investment income due and accrued 119,326 119,326 119,326 — — —
Separate account assets — 9,286,022 — — — 9,286,022
Total financial assets $ 13,228,032 $ 24,036,323 $ 596,576 $ 6,579,510 $ 6,051,946 $ 9,286,022
               
Liabilities:            
Deposit-type funds $ 1,167,355 $ 1,170,856 $ — $ — $ 1,167,355 $ —
Borrowings 99,340 99,562 — — 99,340 —
Derivative liabilities 34,566 34,566 34,566 — — —
Separate account liabilities — 9,286,022 — — — 9,286,022
Total financial liabilities $ 1,301,261 $ 10,591,006 $ 34,566 $ — $ 1,266,695 $ 9,286,022

 

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:

 

Bonds and preferred stocks: For bonds and preferred stocks not actively traded, fair values are estimated using values obtained from independent pricing services or internally derived based on expected future cash flows using a current market rate applicable to the yield, credit quality and maturity of the investments. The fair values of loan-backed and structured securities are estimated using values obtained from independent pricing services or internally derived based on expected future cash flows using a current market rate applicable to the yield, credit quality and maturity of the investments. Bonds and preferred stocks priced based on observable market information are assigned to Level 2. Bonds priced based on uncorroborated broker quotes, unobservable market inputs, partnership valuations or internal valuations are assigned to Level 3.

 

Common stocks: For publicly traded securities and mutual funds, fair value is obtained from independent pricing services or fund managers and are assigned to Level 1 as the fair values are based on quoted prices in active markets for identical securities. For stock in FHLB carrying amount approximates fair value and as such is assigned to Level 2. Stocks in affiliates carried on the equity method are not included as part of the fair value disclosure.

 

Mortgage loans: The fair value of commercial mortgage loans is primarily determined by estimating expected future cash flows and discounting the cash flows using current interest rates for similar mortgage loans with similar credit risk. The fair value of residential mortgage loans is determined by the Yield-Based or Price-Based approach. The Yield-Based approach, applied to performing and sub-performing loans, estimates fair value by first modeling contractual cash flows and then discounting the cash flows at an appropriate discount rate that incorporates an appropriate base rate (e.g., Treasury) to which a risk premium (spread) is added. The Price-Based approach, applied to non-performing loans (greater than 90 days past due) along with certain sub-performing loans, utilizes a direct estimate of a loan’s net present value or dollar price, largely based on underlying collateral values.

 

 

 32 
 

 

NOTE 3 - INVESTMENTS, (continued)

 

Cash, cash equivalents and short-term investments, and investment income due and accrued: The carrying amounts for these instruments approximate their fair values due to the short maturity of these investments.

 

Other investments and derivative liabilities: Public equity securities are classified as Level 1 securities as the fair values are based on quoted prices in active markets. Exchange traded call and put options and exchange traded call and put options (written) are classified as Level 1 since the valuations are based on quoted prices in active markets for identical securities. U.S. government agency securities are classified as Level 2 as the prices are based on observable market data. OTC index call options where the primary inputs to valuations include broker quotes that utilize inputs tailored to the remaining term of each call option and are assigned to Level 2. Foreign currency swaps are classified as Level 2 as the valuation is based on models that rely on inputs such as basis curves and currency spot rates that are observable for substantially the full term of the contract. The valuation techniques underlying the models are widely accepted in the financial services industry and do not involve significant judgment. The fair value for other investments assigned to Level 3 are based on quoted market prices where trading activity is not available to corroborate or internally derived based on expected future cash flows using a current market rate applicable to the yield, credit quality and maturity of the investments. Other investments carried on the equity method are not included as part of the fair value disclosure.

 

Loans on insurance contracts: The fair values for loans on insurance contracts are estimated using discounted cash flow analysis at interest rates currently offered for similar loans. Loans on insurance contracts with similar characteristics are aggregated for purposes of the calculations.

 

Deposit-type funds: Deposit-type funds are valued using discounted cash flow calculations, based on interest rates currently being offered for similar contracts with maturities consistent with those remaining for the contracts being valued.

 

Borrowings: The fair value of borrowed money is estimated using discounted cash flow calculations based on current interest rates consistent with the maturity of the obligation.

 

Separate account assets and liabilities: Separate account assets represent NAV as a practical expedient received from fund managers who stand ready to transact at the quoted values. Separate account liabilities are carried at the value of the underlying assets.

 

NOTE 4 - INCOME TAXES

 

The application of NAIC SAP requires a company to evaluate the recoverability of gross deferred tax assets and to establish a valuation allowance if necessary to reduce the gross deferred tax asset to an amount which is more likely than not to be realized (adjusted gross deferred tax asset). Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance the Company considers many factors including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) the timing of their reversals; (4) taxable capital gains in prior carry back years as well as projected taxable earnings exclusive of reversing temporary differences and carry forwards; (5) the length of time that carryovers can be utilized; (6) unique tax rules that would impact the utilization of the deferred tax assets; and (7) tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused. Based on an evaluation of the above factors, management believes it more likely than not that the adjusted gross deferred tax assets will be realized.

 

 33 
 

 

NOTE 4 - INCOME TAXES, (continued)

 

The components of the net deferred tax asset/(liability) as of December 31, 2023 are as follows:

  Ordinary   Capital   Total
Gross deferred tax assets $ 315,616   $ 4,065   $ 319,681
Statutory valuation allowance adjustment —   —   —
Adjusted gross deferred tax assets 315,616   4,065   319,681
Deferred tax assets nonadmitted 89,124   —   89,124
Subtotal net admitted deferred tax assets 226,492   4,065   230,557
Deferred tax liabilities 38,567   75,588   114,155
Net admitted deferred tax assets/(liability) $ 187,925   $ (71,523)   $ 116,402

 

The amount of admitted adjusted gross deferred tax assets under each component of NAIC SAP as of December 31, 2023 is:

        Ordinary   Capital   Total
Admission calculation components - NAIC SAP          
Federal income taxes paid in prior years recoverable through          
  loss carrybacks $ —   $ —   $ —
Adjusted gross deferred tax assets expected to be realized          
  (excluding the amount of deferred tax assets from above)          
  after application of the threshold limitation $ 116,402   $ —   $ 116,402
    Adjusted gross deferred tax assets expected to be          
      realized following the balance sheet date $ 116,402   $ —   $ 116,402
    Adjusted gross deferred tax assets allowed per          
      limitation threshold xxx   xxx   $ 270,949
Adjusted gross deferred tax assets offset by gross deferred          
  tax liabilities $ 110,090   $ 4,065   $ 114,155
Deferred tax assets admitted as the result of application          
  of NAIC SAP $ 226,492   $ 4,065   $ 230,557

 

The components of the net deferred tax asset/(liability) as of December 31, 2022 are as follows:

  Ordinary   Capital   Total
Gross deferred tax assets $ 270,909   $ 2,554   $ 273,463
Statutory valuation allowance adjustment —   —   —
Adjusted gross deferred tax assets 270,909   2,554   273,463
Deferred tax assets nonadmitted 81,820   —   81,820
Subtotal net admitted deferred tax assets 189,089   2,554   191,643
Deferred tax liabilities 39,067   55,814   94,881
Net admitted deferred tax assets/(net deferred tax liability) $ 150,022   $ (53,260)   $ 96,762

 

 34 
 

NOTE 4 - INCOME TAXES, (continued)

 

The amount of admitted adjusted gross deferred tax assets under each component of NAIC SAP as of December 31, 2022 is:

        Ordinary   Capital   Total
Admission calculation components - NAIC SAP          
Federal income taxes paid in prior years recoverable through          
  loss carrybacks $ —   $ —   $ —
Adjusted gross deferred tax assets expected to be realized          
  (excluding the amount of deferred tax assets from above)          
  after application of the threshold limitation $ 96,762   $ —   $ 96,762
    Adjusted gross deferred tax assets expected to be          
      realized following the balance sheet date $ 96,762   $ —   $ 96,762
    Adjusted gross deferred tax assets allowed per          
      limitation threshold xxx   xxx   $ 270,046
Adjusted gross deferred tax assets offset by gross deferred          
  tax liabilities $ 92,327   $ 2,554   $ 94,881
Deferred tax assets admitted as the result of application          
  of NAIC SAP $ 189,089   $ 2,554   $ 191,643

 

The changes in the components of the net deferred tax asset/(liability) from December 31, 2022 to December 31, 2023 are as follows:

  Ordinary   Capital   Total
Gross deferred tax assets $ 44,707   $ 1,511   $ 46,218
Statutory valuation allowance adjustment —   —   —
Adjusted gross deferred tax assets 44,707   1,511   46,218
Deferred tax assets nonadmitted 7,304   —   7,304
Subtotal net admitted deferred tax assets 37,403   1,511   38,914
Deferred tax liabilities (500)   19,774   19,274
Net admitted deferred tax assets/(net deferred tax liability) $ 37,903   $ (18,263)   $ 19,640

 

        Ordinary   Capital   Total
Admission calculation components - NAIC SAP          
Federal income taxes paid in prior years recoverable through          
  loss carrybacks $ —   $ —   $ —
Adjusted gross deferred tax assets expected to be realized          
  (excluding the amount of deferred tax assets from above)          
  after application of the threshold limitation 19,640   —   19,640
    Adjusted gross deferred tax assets expected to be          
      realized following the balance sheet date 19,640   —   19,640
    Adjusted gross deferred tax assets allowed per          
      limitation threshold xxx   xxx   903
Adjusted gross deferred tax assets offset by gross deferred          
  tax liabilities 17,763   1,511   19,274
Deferred tax assets admitted as the result of application          
  of NAIC SAP $ 37,403   $ 1,511   $ 38,914

 

The Company does not carry any deferred tax liabilities on unrealized capital gains related to investments in affiliates.

 

 35 
 

NOTE 4 - INCOME TAXES, (continued)

 

The Company used the following amounts in determining the DTA admissibility:

  2023   2022
Ratio percentage used to determine recovery period and      
threshold limitation above 916 %   900 %
Amount of adjusted capital and surplus used to determine      
recovery period and threshold limitation above $ 1,806,328   $ 1,800,304

 

There were no tax planning strategies utilized as of December 31, 2023 or 2022.

 

The provision for incurred federal income taxes on earnings are:

  Years ended December 31
  2023   2022   2021
Federal $ 31,114   $ (143)   $ 17,359
Federal income tax on net capital gains 8,041   6,550   9,319
Federal income tax incurred $ 39,155   $ 6,407   $ 26,678

 

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:

  December 31   Change   Change
  2023   2022   2021   from 2022   from 2021
Deferred tax assets:                  
Ordinary                  
Discounting of unpaid losses $ 165   $ 158   $ 172   $ 7   $ (14)
Unearned premium reserve 505   518   515   (13)   3
Policyholder reserves 111,591   100,279   93,859   11,312   6,420
Investments 7,877   10,596   10,124   (2,719)   472
Deferred acquisition costs 88,273   82,402   75,319   5,871   7,083
Policyholder dividends accrual 1,632   1,154   1,328   478   (174)
Fixed assets 11,241   6   1   11,235   5
Compensation and benefits accrual 25,789   25,224   30,390   565   (5,166)
Receivables - nonadmitted 29,906   20,859   16,556   9,047   4,303
Net operating loss carry-forward 225   242   260   (17)   (18)
Intangible Amortization 28,309   15,446   10,159   12,863   5,287
Other (including items <5% of total                  
ordinary tax assets) 10,103   14,025   9,948   (3,922)   4,077
Subtotal 315,616   270,909   248,631   44,707   22,278
Statutory valuation allowance adjustment —   —   —   —   —
Nonadmitted deferred tax assets 89,124   81,820   44,951   7,304   36,869
Admitted ordinary deferred tax assets $ 226,492   $ 189,089   $ 203,680   $ 37,403   $ (14,591)

 

 36 
 

NOTE 4 - INCOME TAXES, (continued)

                   
  December 31 Change Change
  2023   2022   2021   from 2022   from 2021
Capital                  
Investments $ 1,272   $ 452   $ 476   $ 820   $ (24)
Real Estate 2,793   1,994   2,102   799   (108)
Other (including items <5% of total                  
ordinary tax assets) —   108   283   (108)   (175)
Subtotal 4,065   2,554   2,861   1,511   (307)
Statutory valuation allowance adjustment —   —   —   —   —
Nonadmitted —   —   —   —   —
Admitted capital deferred tax assets 4,065   2,554   2,861   1,511   (307)
Admitted deferred tax assets $ 230,557   $ 191,643   $ 206,541   $ 38,914   $ (14,898)

 

Deferred tax liabilities:                  
Ordinary                  
Investments $ 3,171   $ 2,432   $ 1,617   $ 739   $ 815
Fixed assets 2,042   2,285   2,486   (243)   (201)
Deferred and uncollected premium 17,372   17,433   17,778   (61)   (345)
Policyholder reserves 6,588   10,254   13,452   (3,666)   (3,198)
Unearned commissions 9,251   6,520   6,204   2,731   316
Other (including items <5% of total                  
ordinary tax liabilities) 143   143   143   —   —
Subtotal 38,567   39,067   41,680   (500)   (2,613)

 

Capital                  
Investments $ 74,312   $ 55,091   $ 75,747   $ 19,221   $ (20,656)
Real estate 1,276   723   770   553   (47)
Subtotal $ 75,588   $ 55,814   $ 76,517   $ 19,774   $ (20,703)
                   
Deferred tax liabilities $ 114,155   $ 94,881   $ 118,197   $ 19,274   $ (23,316)
                   
Net deferred tax assets $ 116,402   $ 96,762   $ 88,344   $ 19,640   $ 8,418

 

The change in the net admitted deferred tax assets was $19,640, $8,418 and $5,732 for the years ended December 31, 2023, 2022 and 2021, respectively. The change in nonadmitted deferred tax assets of $7,304, $36,869 and $(19,641) was included in change in nonadmitted assets in the Summary of Operations and Changes in Capital and Surplus - Statutory Basis for the years ended December 31, 2023, 2022 and 2021, respectively.

 

The change in net deferred income taxes as of December 31 is as follows:

  2023 2022 Change
Total gross deferred tax assets   $ 319,681   $ 273,463   $ 46,218
Total deferred tax liabilities   114,155   94,881   19,274
Net deferred tax asset   $ 205,526   $ 178,582   26,944
Tax effect of change in unrealized gains and pension liability           35,349
Adjustment to prior year deferred income tax           2,923
Change in net deferred income tax           $ 65,216

 

 37 
 

NOTE 4 - INCOME TAXES, (continued)

 

  2022 2021 Change
Total gross deferred tax assets   $ 273,463   $ 251,492   $ 21,971
Total deferred tax liabilities   94,881   118,197   (23,316)
Net deferred tax asset   $ 178,582   $ 133,295   45,287
Tax effect of change in unrealized losses and pension liability           (33,343)
Change in net deferred income tax           $ 11,944

 

  2021 2020 Change
Total gross deferred tax assets   $ 251,492   $ 238,158   $ 13,334
Total deferred tax liabilities   118,197   90,954   27,243
Net deferred tax asset   $ 133,295   $ 147,204   (13,909)
Tax effect of change in unrealized gains and pension liability           31,065
Change in net deferred income tax           $ 17,156

 

The provision for federal income taxes incurred is different from that which would be obtained by applying the statutory federal income tax rate to income before income taxes. The significant items causing this difference as of December 31, 2023, 2022 and 2021 were as follows:

  2023 2022 2021
Net gain from operations before income taxes $ 72,505 $ 83,546 $ 106,544
Net realized capital gains before income taxes 38,289 31,471 26,620
Deferred reinsurance loss, net (3,954) (3,377) (2,832)
Change in pension liability — — 117
Change in unauthorized reinsurance — 12 (12)
Total pre-tax statutory income 106,840 111,652 130,437
Change in nonadmitted assets (43,079) (20,491) (9,453)
IMR amortization (9,711) (9,977) (9,487)
Tax-exempt income (22,687) (25,308) (28,681)
Adjustment to prior year deferreds 3,083 — —
Dissolution of subsidiary (92,822) (35,134) —
Non-deductible expense 4,884 3,001 2,730
Other (408) 4,006 1,202
Subtotal (53,900) 27,749 86,748
Statutory tax rate 0.21 0.21 0.21
Subtotal (11,319) 5,827 18,217
Adjustment to prior year deferred income tax (2,923) — —
Tax credits (11,819) (11,364) (8,695)
Total statutory income taxes $ (26,061) $ (5,537) $ 9,522
       
Federal and foreign income tax incurred $ 39,155 $ 6,407 $ 26,678
Change in deferred income tax (65,216) (11,944) (17,156)
Total statutory income taxes $ (26,061) $ (5,537) $ 9,522

 

The Company has no foreign tax credit carryovers to subsequent years.

 

 38 
 

NOTE 4 - INCOME TAXES, (continued)

 

At December 31, 2023, the Company has tax carryovers to subsequent years as follows:

Year of Origination   Amount Year of Expiration
2016 Net Operating Loss $ 1,072 2036

 

The amount of federal income tax which is available for recoupment in the event of future capital losses is $8,354, $15,512 and $31,452 for the tax years 2023, 2022 and 2021 respectively. There were no deposits admitted under IRC Section 6033.

 

The Company joins in a consolidated federal income tax return filed by AMHC with AHC, AIP and Ameritas-NY.

 

The Company has no tax loss contingencies for which it is reasonably possible that the total liability will significantly increase within twelve months of the reporting date.

 

The Inflation Reduction Act was enacted on August 16, 2022, and included a new corporate alternative minimum tax (CAMT) which is effective for tax years beginning after 2022. The Company is a nonapplicable reporting entity that does not reasonably expect to be an applicable corporation subject to CAMT as a member of a tax-controlled group of corporations in 2023.

 

NOTE 5 - INFORMATION CONCERNING PARENT, SUBSIDIARIES, AFFILIATES AND RELATED PARTIES

 

The Company loaned $3,000 to Ameritas Advisory Services, LLC on December 5, 2023 under a promissory note due on or before December 1, 2024.

 

The Company loaned $2,000 to Ameritas Investment Company, LLC on April 3, 2023 under a promissory note due on or before April 1, 2024.

 

Ameritas-NY established a $50,000 unsecured line of credit with the Company on April 1, 2023, which is due to expire on March 31, 2024. The Company had no balances outstanding at any time during 2023.

 

The Company's variable life and annuity products are distributed through AIC. Policies placed by this affiliate generated commission and general insurance expense of $21,305, $22,281 and $26,047 for the years ended December 31, 2023, 2022 and 2021, respectively.

 

The Company reported the following amounts due from/(to) the below listed affiliates at December 31, 2023 and 2022, which were recorded in other admitted assets and other liabilities in the Balance Sheets-Statutory Basis. The balances are settled monthly on a net basis.

  2023 2022
Ameritas Holding Company $ (5,247) $ (18,898)
Ameritas Life Insurance Corp. of New York 2,927 3,033
Ameritas Investment Company, LLC 725 375
Ameritas Investment Partners, Inc. 2,012 55
Ameritas Advisory Services, LLC 491 446
Dental Select — 2,369
Total $ 908 $ (12,620)

 

 

 

 39 
 

 

NOTE 5 - INFORMATION CONCERNING PARENT, SUBSIDIARIES, AFFILIATES AND RELATED PARTIES, (continued)

 

The Company provides, as well as receives, technical, financial, legal and marketing support to and from its affiliates under various administrative service and cost-sharing agreements. The net effect on general insurance expenses under these agreements has been decreases of $2,829 and $2,455 for the years ended December 31, 2023 and 2021, respectively, and an increase of $3,009 for the year ended December 31, 2022. The Company receives investment advisory services from an affiliate. Costs related to this agreement, which are included in investment expenses, totaled $20,712, $19,631 and $18,434 for the years ended December 31, 2023, 2022 and 2021, respectively.

 

NOTE 6 - EMPLOYEE BENEFITS

 

The Company has deferred compensation plans covering the Board of Directors, certain management employees and agents. The Company's method of accounting for these plans is the accrual method and the assets for some of these deferred compensation plans are held in a Rabbi Trust.

 

The Company has unfunded, non-qualified pension plans (the NQ Plans) where the Company makes payments under certain voluntary arrangements for retirement benefits, which are not provided for under the AHC sponsored defined benefit pension plan. The measurement date for the Company’s NQ Plans was December 31. A summary of the obligations and assumptions are as follows:

  Underfunded Pension Benefits
  2023 2022 2021
Benefit obligation at beginning of year $ 34,365 $ 44,138 $ 49,302
Service cost — — 35
Interest cost 1,763 1,082 966
Actuarial loss (84) (6,145) (1,458)
Benefits paid (4,268) (4,710) (4,707)
Benefit obligation at end of year $ 31,776 $ 34,365 $ 44,138

 

  Pension Benefits
  2023 2022 2021
Fair value of plan assets at beginning of year   $ — $ — $ —
Reporting entity contribution   4,268 4,710 4,707
Benefits paid   (4,268) (4,710) (4,707)
Fair value of plan assets at end of year   $ — $ — $ —

 

    Pension Benefits
    2023 2022 2021
Components:      
  Accrued benefit costs $ 34,049 $ 36,953 $ 40,739
  Liability (asset) for pension benefits (2,273) (2,588) 3,399
Assets and liabilities recognized:      
  Liabilities recognized 31,776 34,365 44,138
Unrecognized liabilities (assets) (2,273) (2,588) 3,399

 

 

 40 
 

NOTE 6 - EMPLOYEE BENEFITS, (continued)

 

The components of net periodic benefit cost are as follows:

  Pension Benefits
  2023 2022 2021
Service cost $ — $ — $ 35
Interest cost 1,763 1,082 966
Amount of recognized (gains) losses (399) (158) 74
Total net periodic benefit cost $ 1,364 $ 924 $ 1,075

 

Amounts in unassigned surplus recognized as components of net periodic benefit cost:

      Pension Benefits
      2023 2022 2021
Items not yet recognized as a component of net periodic cost - prior year $ (2,588) $ 3,399 $ 4,930
Net loss arising during the period (84) (6,145) (1,457)
Net gain (loss) recognized 399 158 (74)
Items not yet recognized as a component of net      
  periodic cost - current year $ (2,273) $ (2,588) $ 3,399

 

The amounts in unassigned surplus that have not yet been recognized as components of net periodic benefit cost are as follows:

  Pension Benefits
  2023 2022 2021
Net recognized gains (losses) $ (2,273) $ (2,588) $ 3,399

 

The weighted-average assumptions are as follows:

      Pension Benefits
      2023 2022 2021
Weighted-average assumptions used to determine net periodic    
  benefit cost as of December 31:      
    Weighted average discount rate 3.08% 2.14% 2.98%
    Rate of compensation increase NA 1.81% 1.79%
           
Weighted-average assumptions used to determine projected      
  benefit obligation as of December 31:      
    Weighted average discount rate 5.43% 3.08% 2.14%
    Rate of compensation increase NA N/A 1.81%

 

Future expected pension benefit payments are as follows:

Year   Amount
2024   $ 3,781
2025   $ 3,672
2026   $ 3,561
2027   $ 3,449
2028   $ 3,335
2029-2033   $ 14,912

 

 

 

 

 

 

 41 
 

NOTE 6 - EMPLOYEE BENEFITS, (continued)

 

The accumulated pension benefit obligation for the NQ plans is as follows:

    December 31
    2023 2022
Accumulated benefit obligation $ 31,776 $ 34,365
Projected benefit obligation (PBO) $ 31,776 $ 34,365
Funded status (PBO - Plan assets) $ 31,776 $ 34,365
       
Unrecognized items:    
  Unrecognized gains, net of tax $ (1,795) $ (2,045)
Total unrecognized items, net of tax $ (1,795) $ (2,045)

 

The Company participates in the Ameritas Pension Plan (the Plan), of which AHC is the plan sponsor. Plan assets are held in separate accounts of the Company. There were no expenses recognized for the Plan funding.

 

The Company's employees and agents participate in defined contribution plans sponsored by AHC that cover substantially all full-time employees and agents. In addition, certain of the Company’s employees participate in an unfunded, non-qualified defined contribution plan sponsored by AHC. Company matching contributions under the defined contribution plans range from 0.5% to 3.0% of the participant’s compensation. In addition, for eligible employees, the Company makes a contribution of 6.0% of the participant's compensation for those employees hired prior to January 1, 2006 and 5.0% of the participant's compensation for those hired after January 1, 2006. Contributions by the Company to the employee and agents defined contribution plans were $18,281, $16,954 and $15,013 in 2023, 2022 and 2021, respectively.

 

The Company participates in a postretirement benefit plan sponsored by AHC. The expense for the postretirement benefit plan was entirely paid by AHC and then allocated accordingly.

 

NOTE 7 - DIVIDEND RESTRICTIONS AND SURPLUS

 

The Company is subject to regulation by the Department, which restricts the advancement of funds to parent and affiliated companies as well as the amount of dividends that may be paid without prior approval. Dividend payments to the stockholder by the Company, when aggregated with all other dividends in the preceding 12 months, cannot exceed the greater of 10% of surplus as of the preceding year-end or the statutory net gain from operations for the previous calendar year, without prior approval from the Department. Based on this limitation, the Company would be able to pay $192,266 in dividends in 2024, without prior approval. The Company did not pay ordinary dividends to AHC, its parent, in 2023, 2022 or 2021.

 

Unassigned surplus represents the undistributed and unappropriated amount of surplus at the statement date. The cumulative effect related to the portion of unassigned surplus represented or reduced by each of the following items as of December 31:

  2023 2022 2021
Unrealized capital gains, net of taxes $ 87,325 $ 36,786 $ 171,082
Nonadmitted asset values (231,533) (181,150) (123,789)
Asset valuation reserve (336,910) (264,477) (295,155)
 42 
 

NOTE 7 - DIVIDEND RESTRICTIONS AND SURPLUS, (continued)

 

On November 1, 1996, the Company issued $50,000 of 8.20% Surplus Notes (Notes). The Notes mature on November 1, 2026 and may not be redeemed prior to maturity. The Notes are unsecured and subordinated to all present and future policy claims, prior claims and senior indebtedness. These Notes were underwritten by Merrill Lynch & Co. with the trustee as Bank of New York. Subject to prior written approval of the Department, these Notes will pay interest semi-annually on May 1 and November 1. In accordance with Department regulations, interest cannot be accrued or paid until written approval has been received. Interest of $4,100 was paid in 2023, 2022 and 2021 and included as reduction to net investment income on the Summary of Operations and Changes in Capital and Surplus – Statutory Basis. The carrying amount of the Notes totaling $49,976 and $49,967 at December 31, 2023 and 2022, respectively. There is no unapproved interest and principal. The life-to-date interest expense recognized on the Notes as of December 31, 2023 is $110,666. There has not been any principal paid during the life of the Notes as of December 31, 2023. The interest offset percentage is 100%. The Notes holder, the asset issuer and the liquidity source are not related parties. The Notes are not contractually linked and the Notes payments are not subject to administrative offsetting provisions. Cash received upon issuance was not used to purchase an asset directly from the holder of the surplus note.

 

NOTE 8 - COMMITMENTS AND CONTINGENCIES

 

At December 31, 2023, the Company had outstanding agreements to fund mortgages totaling $69,764. In addition at December 31, 2023, the Company has committed to invest $336,101 in equity-type limited partnerships and $139,035 in bonds in subsequent years. These transactions are in the normal course of operations and are not reflected in the accompanying statutory basis financial statements. The Company’s exposure to credit loss is represented by the contractual notional amount of these instruments. The Company uses the same credit policies and collateral requirements in making commitments and conditional obligations as it does for on-balance sheet instruments.

 

At December 31, 2023 and 2022, the Company had FHLB lines of credit available up to $141,900 and $100,821, respectively. The Company had outstanding balances of $95,000 as of December 31, 2022, related to these lines of credit with no outstanding balances as of December 31, 2023.

 

Guaranty Funds Assessments

As a condition of doing business, all states and jurisdictions have adopted laws requiring membership in life and health guaranty funds. Member companies are subject to assessments each year based on life, health or annuity premiums collected in the state. In some states these assessments may be applied against premium taxes. For 2023, 2022 and 2021, the charge to operations related to these assessments was not material. The estimated liability for future guaranty fund assessments of $4,540 and $3,519 at December 31, 2023 and 2022, respectively, was based on data provided by the National Organization of Life & Health Guaranty Associations and is included in other liabilities in the Balance Sheets - Statutory Basis. At December 31, 2023 and 2022, the Company had a related receivable of $3,514 and $2,591, respectively, for amounts recoverable against premium taxes which is included in other admitted assets in the Balance Sheets - Statutory Basis. The periods over which the guaranty funds assessments are expected to be paid are unknown at this time. Premium tax offsets are realized over the period allowed by each state once the guaranty fund assessment has been paid.

 

 

 

 

 

 

 

 

 

 43 
 

 

NOTE 8 - COMMITMENTS AND CONTINGENCIES, (continued)

 

Reconciliation of assets recognized from paid and accrued premium tax offsets and policy surcharges which are included in other admitted assets on the Balance Sheets – Statutory Basis as of December 31, 2023 and 2022 are as follows:

  2023 2022
Assets recognized from paid and accrued premium tax offsets and policy surcharges as of prior year end $ 4,179 $ 5,102
Decreases during the year    
Premium tax offset applied (425) (1,062)
Charge off of estimated premium tax offset — (136)
  (425) (1,198)
Increases during the year    
Estimated premium tax offset 923 —
Assessments paid 167 275
  1,090 275
Assets recognized from paid and accrued premium tax offsets and policy surcharges as of current year end $ 4,844 $ 4,179

 

The Company recognizes liabilities, contingencies and assessments for long-term care insolvencies related guaranty funds liabilities and assets related to the Penn Treaty/ANIC insolvency. As of December 31, 2023, the undiscounted and discounted guaranty fund assessments were $7,349 and $3,070, and the related undiscounted and discounted assets were $5,151 and $2,121. The payables were from 50 jurisdictions for a range of 1-70 years with a weighted average number of years of 37, and the recoverables were from 44 jurisdictions for a range of 1-20 with a weighted average number of years of 6. As of December 31, 2022, the undiscounted and discounted guaranty fund assessments were $7,325 and $3,047, and the related undiscounted and discounted assets were $5,147 and $2,117. The payables were from 50 jurisdictions for a range of 1-70 years with a weighted average number of years of 37, and the recoverables were from 44 jurisdictions for a range of 1-20 with a weighted average number of years of 6. The discount rate applied was 3.0% for December 31, 2023 and 2022.

 

Litigation and Regulatory Examination

From time to time, the Company is subject to litigation and regulatory examination in the normal course of business. Management does not believe that the Company is party to any such pending litigation or examination which would have a material adverse effect on its financial condition or results of its operations. There were no claims (per claim or claimant) where amounts paid to settle were related to extra contractual obligations or bad faith claims resulting from lawsuits during 2023 and 2022.

 

Uncollectibility of Assets

The Company had admitted assets of $19,380 and $14,217 at December 31, 2023 and 2022, respectively, in accounts receivable for uninsured plans included in other admitted assets on the Balance Sheets – Statutory Basis. The Company routinely assesses the collectibility of these receivables. Based upon Company experience, less than 1% of the balance may become uncollectible and the potential loss is not material to the Company’s financial condition.

 44 
 

 

NOTE 9 – GAIN OR LOSS TO THE REPORTING ENTITY FROM UNINSURED ACCIDENT AND HEALTH PLANS

 

ASC Plans

The gain (loss) from operations from administrative services contract (ASC) uninsured plans which is reported within general insurance expenses in the Summary of Operations and Changes in Capital and Surplus – Statutory Basis is as follows for the years ended December 31:

  2023 2022 2021
Gross reimbursement for medical cost incurred $ 212,227 $ 183,245 $ 180,138
Other income or expenses (including interest paid to or received from plans) 24,431 17,282 15,714
Gross expenses incurred (claims and administrative) 236,658 200,527 195,852
       
Net gain (loss) from operations $ (106) $ 3,587 $ 3,660

 

NOTE 10 - LEASES

 

The Company leases office space under operating lease agreements that expire at various dates through 2031. Certain rental commitments have renewal options extending through the year 2031. Some of these leases include escalation clauses, which vary with levels of operating expense. Rental expense under these leases totaled $3,162, $3,229 and $3,166 in 2023, 2022 and 2021, respectively. The Company has subleased a portion of office space and received sublease income recorded as an offset to general insurance expenses in the Summary of Operations and Changes in Capital and Surplus - Statutory Basis of $17, $23, and $33 in 2023, 2022 and 2021, respectively.

 

Future minimum lease payments under noncancellable operating leases consisted of the following at December 31, 2023:

Calendar Year Amount
2024 $ 2,593
2025 1,984
2026 1,593
2027 1,288
2028 1,031
2029 and thereafter 450
Total $ 8,939

 

NOTE 11 - MANAGING GENERAL AGENTS AND THIRD-PARTY ADMINISTRATORS

 

The Company has a third-party administrator, for which direct premiums written exceed 5% of total capital and surplus. The third party administers ordinary life and individual annuity business and does not have an exclusive contract. The third party has been granted the authority for policy administration, claims payment, claims adjustment, reinsurance ceding, binding authority and premium collection. The total amount of direct premiums administered was $342,707, $169,606 and $267,540 for the years ended December 31, 2023, 2022 and 2021, respectively. Another third-party administrator, which administered group accident and health business, does not have an exclusive contract, and has been granted the authority for binding authority and premium collection. Direct premiums administered were $115,530 and $107,487 for the years ended December 31, 2023 and 2022, respectively, exceeded 5% of total capital and surplus. The Company had various other third party administrators and managing general agents during these periods, however their direct premiums written did not exceed 5% of total capital and surplus. The total amount of direct premiums administered by third-party administrators was $613,333, $422,300 and $504,670 for the years ended December 31, 2023, 2022 and 2021, respectively.

 

NOTE 12 - OTHER ITEMS

 

Securities on Deposit

Included in the Company's deposits with government agencies are bonds with a book/adjusted carrying value of $135,269 and $136,104 and cash of $1,992 and $1,534 at December 31, 2023 and 2022, respectively, in a Regulation 109 deposit account with the State of New York as a result of its delicensure in the state as of September 30, 2013.

 

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NOTE 13 - SUBSEQUENT EVENTS

 

The Company has evaluated events subsequent to December 31, 2023 and through March 22, 2024, the date the financial statements were available to be issued.

 

NOTE 14 - REINSURANCE

 

In the ordinary course of business, the Company assumes and cedes reinsurance with other insurers and reinsurers. These arrangements provide greater diversification of business and limit the maximum net loss potential on large or hazardous risks. These reinsured risks are treated in the financial statements as risks for which the Company is not liable. Accordingly, policy liabilities and accruals, including incurred but not reported claims, are reported in the financial statements net of reinsurance assumed and ceded. A contingent liability exists with respect to the amount of such reinsurance in the event that the reinsuring companies are unable to meet their obligations. Reinsurance of risk does not discharge the primary liability of the Company, the Company remains contingently liable with respect to any reinsurance ceded, and this contingency would become an actual liability in the event that the assuming company becomes unable to meet its obligation under the reinsurance treaty.

 

At December 31, 2022, the Company determined that certain balances related to a reinsurer under an order of rehabilitation would most likely be uncollectible, and as such had recorded a contingent liability of $12,043. Per a liquidation order effective September 30, 2023, the Company recaptured this previously ceded business. The impacts from the liquidation order resulted in the recording of a $5,217 recoverable at December 31, 2023 as an estimate of settlement from the reinsurer's estate. This recoverable consists of $4,341 for paid claims and $876 for waived and unearned premiums. Waived and unearned premiums are nonadmitted. Death benefits in the Summary of Operations were reduced by the amount of the recoverable for paid claims, and premiums and annuity considerations for life and accident and health contracts in the Summary of Operations were reduced by the amount of the recoverable for waived and unearned premiums.

 

The Company conducts reinsurance business with Ameritas-NY and other non-affiliated companies. No policies issued by the Company have been reinsured with a foreign company.

 

The reinsurance premiums, net are included in the premium income, net in the Summary of Operations and Changes in Capital and Surplus - Statutory Basis. Reinsurance premium transactions with affiliated and non-affiliated companies are summarized as follows:

  Years Ended December 31
  2023 2022 2021
Assumed $ 108,381 $ 107,822 $ 109,582
Ceded (286,288) (228,462) (267,198)
Reinsurance premiums, net $ (177,907) $ (120,640) $ (157,616)

 

The Company did not have any affiliated transactions through reinsurance operations for premium income, commission expense allowances, benefits to policyholders and reserves for life, accident and health policies that were more than half of 1% of the Company's admitted assets for the years ended December 31, 2023, 2022 and 2021.

 

Effective October 1, 2019, the Company entered into a combination coinsurance/quota share funds withheld reinsurance agreement of an individual indexed annuity block and guaranteed living withdrawal benefit riders on an individual indexed annuity block with a third party.  Amortization of $3,954 and $3,377, which is based on the growth of the funds withheld liability, was recorded in change in surplus as a result of reinsurance, net of taxes, in the Summary of Operations and Changes in Capital and Surplus - Statutory Basis at December 31, 2023 and 2022, respectively.

 

 46 
 

 

 

 

NOTE 14 - REINSURANCE , (continued)

 

The Company entered into two coinsurance agreements of participating life blocks with a third party (Coinsurance Treaties) effective on December 1, 2015. As of December 31, 2023 and 2022, invested assets of $937,979 and $989,028, respectively, were held in trust to support the obligations reinsured under the Coinsurance Treaties. The amounts held in trust are to be used solely to fund obligations incurred under the Coinsurance Treaties and represent 3.4% and 3.9% of the Company’s admitted assets at December 31, 2023 and 2022, respectively.

 

No reinsurance contracts with risk-limiting features were identified for disclosure in any year.

 

NOTE 15 - CHANGES IN UNPAID CLAIMS AND CLAIM ADJUSTMENT EXPENSES

 

The change in the liability for unpaid accident and health claims and claim adjustment expenses, which is reported in reserves for unpaid claims and reserves for life, accident and health policies in the Balance Sheets – Statutory Basis, is summarized as follows:

  2023 2022 2021
Total reserve for unpaid claims at January 1 $ 356,953 $ 345,354 $ 316,765
Less reinsurance assumed (16,244) (18,121) (18,267)
Plus reinsurance ceded 192,807 189,189 172,907
Direct balance 533,516 516,422 471,405
       
Incurred related to:      
Current year 831,876 793,236 777,744
Prior year (4,967) (13,600) 2,986
Total incurred 826,909 779,636 780,730
       
Paid related to:      
Current year 699,500 664,184 645,529
Prior year 101,997 98,358 90,184
Total paid 801,497 762,542 735,713
       
Direct balance 558,928 533,516 516,422
Plus reinsurance assumed 16,234 16,244 18,121
Less reinsurance ceded (202,128) (192,807) (189,189)
Total reserve for unpaid claims at December 31 $ 373,034 $ 356,953 $ 345,354

 

As a result of (favorable)/unfavorable settlement of prior years’ estimated claims, the provision for claims and claim adjustment expenses (decreased)/increased by $(4,967), $(13,600), and $2,986 for the years ended December 31, 2023, 2022, and 2021, respectively. During 2023 and 2022, incurred claims were negative for prior year primarily due to a favorable claim runout for group dental products. During 2021, unfavorable claim runout for disability products was partially offset by favorable claim runout for group dental products. There were no significant changes in methodologies and assumptions used in calculating the liability for unpaid losses and loss adjustment expenses for the year ended December 31, 2023.

 

The Company paid and incurred assumed and ceded reinsurance claims as follows:

  2023 2022 2021
Paid assumed reinsurance claims $ 80,811 $ 79,612 $ 81,375
Incurred assumed reinsurance claims $ 80,801 $ 77,734 $ 81,229
       
Paid ceded reinsurance claims $ 31,346 $ 31,761 $ 29,287
Incurred ceded reinsurance claims $ 40,667 $ 35,379 $ 45,569

 

Anticipated salvage and subrogation are not included in the Company’s determination of the liability for unpaid claims/losses.

 

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NOTE 16 - RESERVES FOR LIFE, ACCIDENT AND HEALTH POLICIES

 

The Company waives deduction of deferred fractional premiums due upon death of the insured and returns any portion of the final premium beyond the date of death on traditional business. Surrender values are not provided in excess of legally computed reserves.

 

Additional premiums are charged for policies issued on substandard lives according to underwriting classification. Reserves for substandard policies are included in the reserves for life, accident and health policies as reflected on the Balance Sheets – Statutory Basis. The corresponding reserves held on such policies are calculated using the same interest rate as standard policies, but employ mortality rates which are multiples of standard mortality.

 

As of December 31, 2023 and 2022, respectively, the Company had $1,744,932 and $2,386,878 of insurance in force for which the gross premiums are less than the net premiums according to the standard valuation set by the Department. Reserves to cover the above insurance totaled $21,958 and $27,272 at December 31, 2023 and 2022, respectively.

 

NOTE 17 - ANALYSIS OF ANNUITY RESERVES AND DEPOSIT-TYPE FUNDS BY WITHDRAWAL CHARACTERISTICS

 

Withdrawal characteristics of annuity reserves and deposit-type funds at December 31 are as follows:

  2023
  General Account Separate Account Non-guaranteed Total % of Total
Individual Annuities:        
Subject to discretionary withdrawal:        
With fair value adjustment $ — $ — $ — — %
At book value less current surrender        
charge of 5% or more 2,437,537 — 2,437,537 33.7 %
At fair value — 2,255,035 2,255,035 31.1 %
Total with adjustment or at fair value 2,437,537 2,255,035 4,692,572 64.8 %
At book value without adjustment        
(minimal or no charge) 1,924,501 — 1,924,501 26.6 %
Not subject to discretionary withdrawal 623,245 — 623,245 8.6 %
Total gross 4,985,283 2,255,035 7,240,318 100.0 %
Reinsurance ceded 469,981 — 469,981  
Total individual annuity reserves $ 4,515,302 $ 2,255,035 $ 6,770,337  
Amount included in at book value less current surrender charge of 5% or more that will move to at book value without adjustment (minimal or no charge adjustment) for the first time within the year after the statement date: $ 315,273 $ — $ 315,273  

 

 

 

 

 

 

 

 

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NOTE 17 - ANALYSIS OF ANNUITY RESERVES AND DEPOSIT-TYPE FUNDS BY WITHDRAWAL CHARACTERISTICS, (continued)

 

  2023
  General Account Separate Account Non-guaranteed Total % of Total
Group Annuities:        
Subject to discretionary withdrawal:        
With fair value adjustment $ 987,115 $ — $ 987,115 12.7 %
At book value less current surrender        
charge of 5% or more — — — — %
At fair value — 6,648,256 6,648,256 85.5 %
Total with adjustment or at fair value 987,115 6,648,256 7,635,371 98.2 %
At book value without adjustment        
(minimal or no charge) 110,711 — 110,711 1.4 %
Not subject to discretionary withdrawal 32,461 — 32,461 0.4 %
Total gross 1,130,287 6,648,256 7,778,543 100.0 %
Reinsurance ceded 9,612 — 9,612  
Total group annuity reserves $ 1,120,675 $ 6,648,256 $ 7,768,931  
Amount included in at book value less current surrender charge of 5% or more that will move to at book value without adjustment (minimal or no charge adjustment) for the first time within the year after the statement date: $ — $ — $ —  

 

Deposit-type Funds (no life contingencies):        
Subject to discretionary withdrawal:        
With fair value adjustment $ 230,518 $ — $ 230,518 14.7 %
At book value less current surrender        
charge of 5% or more — — — — %
At fair value — 399,909 399,909 25.5 %
Total with adjustment or at fair value 230,518 399,909 630,427 40.2 %
At book value without adjustment        
(minimal or no charge) 221,439 — 221,439 14.1 %
Not subject to discretionary withdrawal 718,847 — 718,847 45.7 %
Total gross 1,170,804 399,909 1,570,713 100.0 %
Reinsurance ceded 368 — 368  
Total deposit-type funds $ 1,170,436 $ 399,909 $ 1,570,345  
Amount included in at book value less current surrender charge of 5% or more that will move to at book value without adjustment (minimal or no charge adjustment) for the first time within the year after the statement date: $ — $ — $ —  
Total annuity reserves and deposit-type funds $ 6,806,413 $ 9,303,200 $ 16,109,613  

 

 

 

 

 

 

 

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NOTE 17 - ANALYSIS OF ANNUITY RESERVES AND DEPOSIT-TYPE FUNDS BY WITHDRAWAL CHARACTERISTICS, (continued)

 

  2022
  General Account Separate Account Non-guaranteed Total % of Total
Individual Annuities:        
Subject to discretionary withdrawal:        
With fair value adjustment $ — $ — $ — — %
At book value less current surrender        
charge of 5% or more 1,859,173 — 1,859,173 28.2 %
At fair value — 2,149,930 2,149,930 32.6 %
Total with adjustment or at fair value 1,859,173 2,149,930 4,009,103 60.8 %
At book value without adjustment        
(minimal or no charge) 2,109,395 — 2,109,395 32.0 %
Not subject to discretionary withdrawal 469,653 — 469,653 7.2 %
Total gross 4,438,221 2,149,930 6,588,151 100.0 %
Reinsurance ceded 356,957 — 356,957  
Total individual annuity reserves $ 4,081,264 $ 2,149,930 $ 6,231,194  
Amount included in at book value less current surrender charge of 5% or more that will move to at book value without adjustment (minimal or no charge adjustment) for the first time within the year after the statement date: $ 188,797 $ — $ 188,797  

 

Group Annuities:        
Subject to discretionary withdrawal:        
With fair value adjustment $ 1,048,387 $ — $ 1,048,387 14.9 %
At book value less current surrender        
charge of 5% or more — — — — %
At fair value — 5,825,347 5,825,347 82.8 %
Total with adjustment or at fair value 1,048,387 5,825,347 6,873,734 97.7 %
At book value without adjustment        
(minimal or no charge) 123,819 — 123,819 1.8 %
Not subject to discretionary withdrawal 34,966 — 34,966 0.5 %
Total gross 1,207,172 5,825,347 7,032,519 100.0 %
Reinsurance ceded 8,702 — 8,702  
Total group annuity reserves $ 1,198,470 $ 5,825,347 $ 7,023,817  
Amount included in at book value less current surrender charge of 5% or more that will move to at book value without adjustment (minimal or no charge adjustment) for the first time within the year after the statement date: $ — $ — $ —  

 

 

 

 

 

 

 

 

 

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NOTE 17 - ANALYSIS OF ANNUITY RESERVES AND DEPOSIT-TYPE FUNDS BY WITHDRAWAL CHARACTERISTICS, (continued)

 

  2022
  General Account Separate Account Non-guaranteed Total % of Total
Deposit-type Funds (no life contingencies):        
Subject to discretionary withdrawal:        
With fair value adjustment $ 215,985 $ — $ 215,985 14.0 %
At book value less current surrender        
charge of 5% or more — — — — %
At fair value — 373,612 373,612 24.2 %
Total with adjustment or at fair value 215,985 373,612 589,597 38.2 %
At book value without adjustment        
(minimal or no charge) 239,630 — 239,630 15.5 %
Not subject to discretionary withdrawal 715,673 — 715,673 46.3 %
Total gross 1,171,288 373,612 1,544,900 100.0 %
Reinsurance ceded 432 — 432  
Total deposit-type funds $ 1,170,856 $ 373,612 $ 1,544,468  
Amount included in at book value less current surrender charge of 5% or more that will move to at book value without adjustment (minimal or no charge adjustment) for the first time within the year after the statement date: $ — $ — $ —  
Total annuity reserves and deposit-type funds $ 6,450,590 $ 8,348,889 $ 14,799,479  

 

The following information is obtained from the applicable Exhibit in the Company’s December 31 Annual Statements and related Separate Accounts Annual Statements, both of which are filed with the Department, and is provided to reconcile annuity reserves and deposit-type funds to amounts reported in the Balance Sheets – Statutory Basis as of December 31:

  2023 2022
Life and Accident and Health Annual Statement:    
Exhibit 5, Annuities Section, Total (net) $ 5,614,663 $ 5,257,699
Exhibit 5, Supplementary Contracts with Life Contingencies Section, Total (net) 21,314 22,035
Exhibit 7, Deposit-Type Contracts, Line 14, Column 1 1,170,436 1,170,856
  6,806,413 6,450,590
Separate Accounts Annual Statement:    
Exhibit 3, Line 0299999, Column 2 8,903,291 7,975,277
Exhibit 4, Line 9, Column 1 399,909 373,612
Total $ 16,109,613 $ 14,799,479

 

 

 51 
 

NOTE 18 - ANALYSIS OF LIFE ACTUARIAL RESERVES BY WITHDRAWAL CHARACTERISTICS

 

Withdrawal characteristics of life insurance account value, cash value and reserves as of December 31 are as follows:

    2023
    General Account Separate Account Nonguaranteed
    Account Value Cash Value Reserve Account Value Cash Value Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:            
  Universal life $ 1,037,751 $ 1,034,859 $ 1,041,312 $ — $ — $ —
  Universal life with secondary guarantees 755,070 643,235 1,272,427 — — —
  Indexed universal life 13,650 13,645 13,721 — — —
  Indexed universal life with secondary guarantees 1,269,209 1,060,826 1,131,587 — — —
  Other permanent cash value life insurance — 1,710,788 2,828,791 — — —
  Variable universal life 147,867 1,204,568 159,133 1,064,218 — 1,062,279
Not subject to discretionary withdrawal or no cash values:            
  Term policies without cash value XXX XXX 500,217 XXX XXX —
  Accidental death benefits XXX XXX 315 XXX XXX —
  Disability - active lives XXX XXX 32,603 XXX XXX —
  Disability - disabled lives XXX XXX 23,217 XXX XXX —
  Miscellaneous reserves XXX XXX 22,383 XXX XXX —
Total gross 3,223,547 5,667,921 7,025,706 1,064,218 — 1,062,279
Reinsurance ceded — — 598,211 — — —
Total life reserves $ 3,223,547 $ 5,667,921 $ 6,427,495 $ 1,064,218 $ — $ 1,062,279

 

    2022
    General Account Separate Account Nonguaranteed
    Account Value Cash Value Reserve Account Value Cash Value Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:            
  Universal life $ 1,070,838 $ 1,070,386 $ 1,076,419 $ — $ — $ —
  Universal life with secondary guarantees 753,257 631,387 1,232,632 — — —
  Indexed universal life 13,971 13,964 14,091 — — —
  Indexed universal life with secondary guarantees 1,091,925 900,498 960,006 — — —
  Other permanent cash value life insurance — 1,605,159 2,742,781 — — —
  Variable universal life 146,649 1,060,788 157,522 922,149 — 919,743
Not subject to discretionary withdrawal or no cash values:            
  Term policies without cash value XXX XXX 505,067 XXX XXX —
  Accidental death benefits XXX XXX 312 XXX XXX —
  Disability - active lives XXX XXX 32,238 XXX XXX —
  Disability - disabled lives XXX XXX 24,493 XXX XXX —
  Miscellaneous reserves XXX XXX 27,773 XXX XXX —
Total gross 3,076,640 5,282,182 6,773,334 922,149 — 919,743
Reinsurance ceded — — 614,353 — — —
Total life reserves $ 3,076,640 $ 5,282,182 $ 6,158,981 $ 922,149 $ — $ 919,743

 

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NOTE 18 - ANALYSIS OF LIFE ACTUARIAL RESERVES BY WITHDRAWAL CHARACTERISTICS, (continued)

 

The following information is obtained from the applicable Exhibit in the Company’s December 31 Annual Statements and related Separate Accounts Annual Statements, both of which are filed with the Department, and is provided to reconcile life reserves to amounts reported in the Balance Sheets – Statutory Basis as of December 31:

    2023 2022
Life and Accident and Health Annual Statement:    
Exhibit 5, Life Insurance Section, Total (net) $ 6,373,096 $ 6,100,454
Exhibit 5, Accidental Death Benefits Section, Total (net) 301 296
Exhibit 5, Disability - Active Lives Section, Total (net) 17,131 16,091
Exhibit 5, Disability - Disabled Lives Section, Total (net) 15,984 16,285
Exhibit 5, Miscellaneous Reserves Section, Total (net) 20,983 25,855
    6,427,495 6,158,981
Separate Accounts Annual Statement:      
Exhibit 3, Line 0199999, Column 2   1,062,279 919,743
    1,062,279 919,743
Total   $ 7,489,774 $ 7,078,724

 

NOTE 19 - PREMIUM AND ANNUITY CONSIDERATIONS DEFERRED AND UNCOLLECTED

 

Deferred and uncollected life insurance premiums and annuity considerations as of December 31 are as follows:

  2023 2022
Type Gross Net of Loading Gross Net of Loading
Ordinary new business $ 6,570 $ 24 $ 4,852 $ (118)
Ordinary renewal 47,932 56,700 47,139 59,327
Group life 1 1 1 1
Total $ 54,503 $ 56,725 $ 51,992 $ 59,210

 

NOTE 20 - SEPARATE ACCOUNTS

 

Separate accounts held by the Company offer no investment experience guarantees and relate to individual variable life and annuity policies, group annuity contracts and group funding agreements of a nonguaranteed return nature, as approved by the state of domicile pursuant to the Company’s certificate of authority. The net investment experience of the separate accounts is credited directly to the contract holder and can be positive or negative. The assets and liabilities of the account are legally separated or insulated from other Company assets and liabilities. The assets of the separate account are carried at NAV.

 

Variable life and annuities provide an incidental death benefit of the greater of account value or premium paid. The Company offers a policy with a step up minimum guaranteed death benefit option and a guaranteed lifetime withdrawal benefit. The minimum guaranteed death benefit reserve and the guaranteed lifetime withdrawal benefit reserve is held in reserves for life, accident and health policies line of the Balance Sheets – Statutory Basis.

 

The Company utilizes separate accounts to record and account for assets and liabilities for particular lines of business and/or transactions. As of December 31, 2023, the Company reported assets and liabilities from variable universal life, variable annuities, funding agreements and group annuities product lines in a separate account. In accordance with the products/transactions recorded within the separate account, assets are considered legally insulated from the general account. As of December 31, 2023 and 2022, the Company’s Separate Accounts included legally insulated assets of $10,379,450 and $9,286,022, respectively.

 

The Company does not engage in securities lending transactions within the separate account.

 

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NOTE 20 - SEPARATE ACCOUNTS, (continued)

 

Information regarding the nonguaranteed separate accounts of the Company is as follows:

  2023 2022 2021
For the year ended December 31:      
Premiums, considerations or deposits $ 992,717 $ 1,071,230 $ 1,281,793
At December 31:      
Reserves by valuation basis      
For accounts with assets at:      
Fair value $ 10,365,479 $ 9,268,632  
       
Reserves subject to discretionary withdrawal:      
At fair value $ 10,365,479 $ 9,268,632  
Total included in Separate account liabilities in the      
Balance Sheets – Statutory Basis $ 10,365,479 $ 9,268,632  

 

Following is a reconciliation of net transfers to (from) separate accounts at December 31:

  2023 2022 2021
Transfers as reported in the Statements of Income and      
Changes in Surplus of the Separate Accounts Statement:      
Transfers to the separate accounts $ 957,081 $ 1,029,159 $ 1,228,829
Transfers from the separate accounts (1,444,282) (1,392,531) (1,700,163)
Net transfers from the separate accounts (487,201) (363,372) (471,334)
Reconciling adjustments:      
Deposit-type contracts assumption reinsurance — — (1)
Net transfers from the separate accounts in the Summary of Operations and      
Changes in Capital and Surplus – Statutory Basis of the Company $ (487,201) $ (363,372) $ (471,335)

 

NOTE 21 - RECONCILING ITEMS TO ANNUAL STATEMENT

 

During 2023, the Company reversed an impairment related to a ceded reinsurer previously under rehabilitation (see Note 14). Certain reclassifications have been made to these financial statements from those filed with the Department. The reclassifications detailed below reflect the Summary of Operations impact from the impairment reversal. There was no overall impact to Total Expenses or Surplus as filed.

 

  As Filed Reclassification Adjustment Audited Financial Statements
Change in reserves for life, accident and health policies $ 647,614 $ (10,948) $ 636,666
General insurance expenses 578,303 10,948 589,251

 

During 2022, the Company recorded an adjustment for policy loan income related to an assumption agreement. Certain reclassifications have been made to these financial statements from those filed with the Department. The reclassifications detailed below reflect the Summary of Operations impact from the adjustment. There was no impact to Total Premiums and Other Revenue or Surplus as filed.

 

  As Filed Reclassification Adjustment Audited Financial Statements
Net investment income (including amortization of interest maintenance reserve) $ 501,104 $ 12,843 $ 513,947
Miscellaneous income * 60,711 (12,843) 47,868

* Reflected on line 8.3 Aggregate write-ins for miscellaneous income in financial statements filed with the Department

 

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