AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

 

 

 

 

 

 

 

 

 

 

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 Variable Separate Account VA-2

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 VA-2 (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 1987.

 

 

 

 

 

 

 
 

 

 

 

 

 

 

 

 

 

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FS-3 
 
AMERITAS VARIABLE SEPARATE ACCOUNT VA-2  
STATEMENTS OF NET ASSETS
DECEMBER 31, 2023
                 
                 
ASSETS          
INVESTMENTS AT FAIR VALUE:          
                 
  Fidelity(R) Variable Insurance Products (Fidelity):          
    Fidelity(R) VIP Equity-Income Portfolio(SM), Initial Class (Equity-Income IC) -    
      642,552.958 shares at $24.85 per share (cost $14,247,211)     $ 15,967,441
    Fidelity(R) VIP Equity-Income Portfolio(SM), Service Class (Equity-Income SC) -    
      72,271.101 shares at $24.65 per share (cost $1,645,995)       1,781,483
    Fidelity(R) VIP Equity-Income Portfolio(SM), Service Class 2 (Equity-Income SC2) -    
      384,867.486 shares at $23.91 per share (cost $8,530,340)       9,202,182
    Fidelity(R) VIP Growth Portfolio, Initial Class (Growth IC) -        
      268,316.665 shares at $93.10 per share (cost $16,763,703)       24,980,282
    Fidelity(R) VIP Growth Portfolio, Service Class (Growth SC) -        
      31,536.104 shares at $92.36 per share (cost $2,045,329)       2,912,675
    Fidelity(R) VIP Growth Portfolio, Service Class 2 (Growth SC2) -        
      86,561.066 shares at $89.92 per share (cost $6,258,696)       7,783,571
    Fidelity(R) VIP High Income Portfolio, Initial Class (High Income IC) -      
      598,215.328 shares at $4.60 per share (cost $3,033,277)       2,751,791
    Fidelity(R) VIP High Income Portfolio, Service Class (High Income SC) -    
      101,318.640 shares at $4.56 per share (cost $528,388)       462,013
    Fidelity(R) VIP High Income Portfolio, Service Class 2 (High Income SC2) -    
      8,394,731.567 shares at $4.38 per share (cost $43,986,149)       36,768,924
    Fidelity(R) VIP Overseas Portfolio, Initial Class (Overseas IC) -        
      145,640.627 shares at $25.82 per share (cost $2,774,488)       3,760,441
    Fidelity(R) VIP Overseas Portfolio, Service Class (Overseas SC) -        
      18,442.117 shares at $25.68 per share (cost $362,901)       473,594
    Fidelity(R) VIP Overseas Portfolio, Service Class 2 (Overseas SC2) -        
      290,112.467 shares at $25.51 per share (cost $5,926,104)       7,400,769
    Fidelity(R) VIP Asset Manager Portfolio, Initial Class (Asset Mgr. IC) -    
      383,445.734 shares at $15.64 per share (cost $5,876,957)       5,997,091
    Fidelity(R) VIP Asset Manager Portfolio, Service Class (Asset Mgr. SC) -    
      67,182.897 shares at $15.47 per share (cost $1,017,540)       1,039,319
    Fidelity(R) VIP Asset Manager Portfolio, Service Class 2 (Asset Mgr. SC2) -    
      96,028.873 shares at $15.14 per share (cost $1,427,846)       1,453,877
    Fidelity(R) VIP Investment Grade Bond Portfolio, Initial Class (Inv. Bond IC) -    
      377,019.150 shares at $11.17 per share (cost $4,795,150)       4,211,304
    Fidelity(R) VIP Investment Grade Bond Portfolio, Service Class 2 (Inv. Bond SC2) -    
      5,726,491.547 shares at $10.82 per share (cost $71,351,436)       61,960,639
    Fidelity(R) VIP Contrafund(SM) Portfolio, Initial Class (Contrafund IC) -    
      398,744.205 shares at $48.63 per share (cost $12,891,199)       19,390,931
    Fidelity(R) VIP Contrafund(SM) Portfolio, Service Class (Contrafund SC) -    
      93,823.853 shares at $48.30 per share (cost $3,092,408)       4,531,692
                 

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

FS-4 
 
AMERITAS VARIABLE SEPARATE ACCOUNT VA-2  
STATEMENTS OF NET ASSETS
DECEMBER 31, 2023
                 
                 
ASSETS, continued          
INVESTMENTS AT FAIR VALUE:          
                 
  Fidelity(R) Variable Insurance Products (Fidelity), continued:        
    Fidelity(R) VIP Contrafund(SM) Portfolio, Service Class 2 (Contrafund SC2) -    
      621,013.144 shares at $46.83 per share (cost $20,827,073)     $ 29,082,046
    Fidelity(R) VIP Asset Manager: Growth Portfolio, Initial Class (Asset Mgr. Gr. IC) -    
      43,394.061 shares at $21.41 per share (cost $702,520)       929,067
    Fidelity(R) VIP Asset Manager: Growth Portfolio, Service Class (Asset Mgr. Gr. SC) -    
      6,757.384 shares at $21.19 per share (cost $107,232)       143,189
    Fidelity(R) VIP Asset Manager: Growth Portfolio, Service Class 2 (Asset Mgr. Gr. SC2) -  
      23,806.420 shares at $20.99 per share (cost $442,662)       499,697
    Fidelity(R) VIP Mid Cap Portfolio, Service Class 2 (Mid Cap SC2) -        
      113,019.494 shares at $34.69 per share (cost $3,823,854)       3,920,646
    Fidelity(R) VIP Government Money Market Portfolio, Initial Class (Money Market) -    
      13,262,336.050 shares at $1.00 per share (cost $13,262,336)       13,262,336
    Fidelity(R) VIP Government Money Market Portfolio, Service Class 2 (Money Market SC2) -
      2,071,956.250 shares at $1.00 per share (cost $2,071,956)       2,071,956
    Fidelity(R) VIP Index 500 Portfolio, Service Class 2 (Index 500 SC2) -        
      20,142.419 shares at $455.28 per share (cost $5,956,715)       9,170,441
    Fidelity(R) VIP Strategic Income Portfolio, Service Class 2 (Strategic SC2) -    
      44,908.334 shares at $10.35 per share (cost $508,894)       464,801
  The Alger Portfolios (Alger):          
    Alger Balanced Portfolio, Class I-2 (Balanced) -          
      299,289.907 shares at $18.93 per share (cost $4,387,480)       5,665,558
  MFS(R) Variable Insurance Trust (MFS):          
    MFS(R) Utilities Series Portfolio, Initial Class (Utilities) -        
      778,850.424 shares at $32.25 per share (cost $22,710,684)       25,117,926
    MFS(R) New Discovery Series Portfolio, Initial Class (New Discovery) -    
      509,551.103 shares at $12.94 per share (cost $8,812,830)       6,593,591
    MFS(R) Total Return Series Portfolio, Initial Class (Total Return) -        
      215,972.926 shares at $23.26 per share (cost $5,035,806)       5,023,530
    MFS(R) Growth Series Portfolio, Service Class (Growth SC) -        
      16,829.151 shares at $55.68 per share (cost $914,688)       937,047
    MFS(R) New Discovery Series Portfolio, Service Class (New Discovery SC) -    
      75,166.114 shares at $10.10 per share (cost $1,164,719)       759,178
    MFS(R) Utilities Series Portfolio, Service Class (Utilities SC) -        
      96,185.659 shares at $31.54 per share (cost $3,176,771)       3,033,696
  MFS(R) Variable Insurance Trust II (MFS):          
    MFS(R) Income Portfolio, Initial Class (Strategic) -          
      346,290.566 shares at $8.37 per share (cost $3,225,668)       2,898,452
    MFS(R) Research International Portfolio, Initial Class (Research) -        
      1,468,322.336 shares at $16.88 per share (cost $22,775,112)       24,785,281

 

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

FS-5 
 
AMERITAS VARIABLE SEPARATE ACCOUNT VA-2  
STATEMENTS OF NET ASSETS
DECEMBER 31, 2023
                 
                 
ASSETS, continued          
INVESTMENTS AT FAIR VALUE:          
                 
  MFS(R) Variable Insurance Trust II (MFS), continued:        
    MFS(R) Blended Research(R) Core Equity Portfolio, Service Class        
     (Blended Core SC) -       $ 237,949
      4,353.258 shares at $54.66 per share (cost $231,182)        
    MFS(R) Corporate Bond Portfolio, Service Class (Corporate SC) -        
      118,247.237 shares at $9.37 per share (cost $1,167,651)       1,107,977
    MFS(R) Government Securities Portfolio, Service Class (Government SC) -    
      7,955.855 shares at $10.82 per share (cost $99,388)         86,082
  MFS(R) Variable Insurance Trust III (MFS):          
    MFS(R) Growth Allocation Portfolio, Service Class (Growth Allocation SC) -    
      45,501.210 shares at $9.60 per share (cost $513,876)       436,812
    MFS(R) Moderate Allocation Portfolio, Service Class (Moderate SC) -    
      81,121.518 shares at $10.73 per share (cost $971,132)       870,434
    MFS(R) Conservative Allocation Portfolio, Service Class (Conservative SC) -    
      39,285.453 shares at $9.38 per share (cost $426,974)       368,498
    MFS(R) Blended Research(R) Small Cap Equity Portfolio, Service Class    
     (Blended Small Cap SC) -         283,239
      29,846.025 shares at $9.49 per share (cost $317,771)        
    MFS(R) Global Real Estate Portfolio, Initial Class (Global Real Estate IC) -    
      1,918.155 shares at $13.08 per share (cost $29,731)         25,089
    MFS(R) Global Real Estate Portfolio, Service Class (Global Real Estate SC) -    
      8,104.313 shares at $15.93 per share (cost $131,523)       129,102
  Morgan Stanley Variable Insurance Fund, Inc. (Van Kampen):        
    Morgan Stanley VIF Emerging Markets Equity Portfolio, Class I (Emerging Markets) -    
      1,428,581.395 shares at $12.90 per share (cost $20,227,017)       18,428,700
    Morgan Stanley VIF Global Strategist Portfolio, Class I (Intl. Magnum) -    
      122,789.229 shares at $8.57 per share (cost $1,214,096)       1,052,304
    Morgan Stanley VIF U.S. Real Estate Portfolio, Class I (U.S. Real Estate) -    
      3,447,598.957 shares at $14.54 per share (cost $59,158,934)       50,128,089
    Morgan Stanley VIF Global Strategist Portfolio, Class II (Global II) -        
      10,188.348 shares at $8.49 per share (cost $91,831)         86,499
  Calvert Variable Series, Inc. (Calvert):          
    Calvert VP SRI Balanced Portfolio, Class I (Balanced) -        
      2,428,980.936 shares at $2.37 per share (cost $5,049,504)       5,756,685
    Calvert VP SRI Mid Cap Portfolio (Mid Cap) -          
      71,521.334 shares at $25.47 per share (cost $2,023,368)       1,821,648
    Calvert VP SRI Balanced Portfolio, Class F (Balanced F) -         
      593,103.102 shares at $2.35 per share (cost $1,254,170)       1,393,792

 

 

 

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

FS-6 
 
AMERITAS VARIABLE SEPARATE ACCOUNT VA-2  
STATEMENTS OF NET ASSETS
DECEMBER 31, 2023
                 
                 
ASSETS, continued          
INVESTMENTS AT FAIR VALUE:          
                 
  American Century Investments (American Century):          
    American Century VP Disciplined Core Value Fund Portfolio, Class I (Income & Growth) -
      5,031,877.021 shares at $7.67 per share (cost $43,826,925)     $ 38,594,497
    American Century VP Mid Cap Value Fund Portfolio, Class I (Mid Cap Value) -    
      411,734.260 shares at $19.44 per share (cost $7,934,327)       8,004,114
    American Century VP Disciplined Core Value Fund Portfolio, Class II (Inc. & Growth II) -  
      194,113.992 shares at $7.67 per share (cost $1,629,327)       1,488,854
  AIM Variable Insurance Funds (AIM):          
    Invesco V.I. EQV International Equity Fund Portfolio, Series I (Intl. Growth) -    
      221,061.417 shares at $34.09 per share (cost $7,192,777)       7,535,984
    Invesco V.I. Global Real Estate Fund Portfolio, Series I (Global) -        
      175,575.432 shares at $13.98 per share (cost $2,626,956)       2,454,545
    Invesco V.I. Global Core Equity Fund Portfolio, Series I (Global Value) -    
      285,328.976 shares at $9.67 per share (cost $2,879,113)       2,759,131
    Invesco V.I. Discovery Mid Cap Growth Fund Portfolio, Series I        
     (Discovery Mid Cap) -          
      36,073.043 shares at $62.81 per share (cost $2,670,554)       2,265,748
    Invesco V.I. Diversified Dividend Fund Portfolio, Series II (Diversified) -    
      21,506.360 shares at $23.99 per share (cost $545,276)       515,938
    Invesco V.I. American Value Fund Portfolio, Series II (Value) -        
      16,730.576 shares at $13.73 per share (cost $259,861)       229,711
    Invesco V.I. Global Real Estate Fund Portfolio, Series II (Real Estate) -      
      114,711.257 shares at $13.65 per share (cost $1,585,357)       1,565,809
  Calvert Variable Products, Inc. (Summit):          
    Calvert VP S&P MidCap 400 Index Portfolio, Class I (S&P MidCap) -      
      448,975.007 shares at $119.60 per share (cost $40,056,626)       53,697,411
    Calvert VP Russell 2000 Small Cap Index Portfolio, Class I (Russell Small Cap) -    
      391,823.892 shares at $79.76 per share (cost $27,900,477)       31,251,874
    Calvert VP Nasdaq 100 Index Portfolio, Class I (Nasdaq-100 Index) -        
      330,723.260 shares at $143.17 per share (cost $19,436,963)       47,349,649
    Calvert VP EAFE International Index Portfolio, Class I (EAFE Intl.) -        
      413,914.773 shares at $95.39 per share (cost $31,610,244)       39,483,330
    Calvert VP S&P 500 Index Portfolio (S&P 500) -          
      808,318.714 shares at $172.99 per share (cost $97,754,550)       139,831,054
    Calvert VP Investment Grade Bond Index Portfolio, Class I (Barclays) -    
      1,396,255.887 shares at $48.44 per share (cost $76,056,701)       67,634,635
    Calvert VP Volatility Managed Growth Portfolio, Class F (Growth) -         
      4,777,185.572 shares at $20.58 per share (cost $82,225,791)       98,314,479

 

 

 

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

FS-7 
 
AMERITAS VARIABLE SEPARATE ACCOUNT VA-2  
STATEMENTS OF NET ASSETS
DECEMBER 31, 2023
                 
                 
ASSETS, continued          
INVESTMENTS AT FAIR VALUE:          
                 
  Calvert Variable Products, Inc. (Summit), continued:          
    Calvert VP Volatility Managed Moderate Growth Portfolio, Class F (Mod. Growth) -     
      2,922,992.212 shares at $19.28 per share (cost $49,232,096)     $ 56,355,290
    Calvert VP Volatility Managed Moderate Portfolio, Class F (Moderate) -     
      3,583,623.432 shares at $17.73 per share (cost $58,719,212)       63,537,643
  Third Avenue Variable Series Trust (Third Avenue):          
    Third Avenue Value Portfolio (Value) -          
      339,254.789 shares at $23.27 per share (cost $5,977,097)       7,894,459
  BNY Mellon Investment Portfolios (Dreyfus):          
    BNY Mellon MidCap Stock Portfolio, Service Shares (MidCap) -        
      141,858.256 shares at $18.56 per share (cost $2,553,909)       2,632,889
    BNY Mellon Small Cap Stock Index Portfolio, Service Shares (Small Cap) -    
      48,766.326 shares at $18.58 per share (cost $881,636)       906,078
  Deutsche DWS Variable Series II (Scudder):          
    DWS Small Mid Cap Value VIP Portfolio, Class A (Small Mid Value) -      
      126,563.041 shares at $13.86 per share (cost $1,689,700)       1,754,164
    DWS International Growth VIP Portfolio, Class A (Thematic) -        
      19,961.094 shares at $15.11 per share (cost $272,628)       301,612
    DWS Alternative Asset Allocation VIP Portfolio, Class B (Alternative) -    
      2,494.803 shares at $12.72 per share (cost $32,470)         31,734
  Neuberger Berman Advisers Management Trust (Neuberger Berman):      
    Neuberger Berman AMT Mid Cap Intrinsic Value Portfolio, Class I (Regency) -    
      52,929.474 shares at $15.76 per share (cost $874,938)       834,169
    Neuberger Berman AMT Mid Cap Intrinsic Value Portfolio, Class S (Intrinsic) -    
      10,250.093 shares at $19.32 per share (cost $202,075)       198,032
    Neuberger Berman AMT Mid Cap Growth Portfolio, Class S (Growth) -    
      20,701.380 shares at $22.92 per share (cost $536,055)       474,476
  T. Rowe Price Equity Series, Inc. (T. Rowe):          
    T. Rowe Price Blue Chip Growth Portfolio-II (Blue Chip) -        
      1,079,954.706 shares at $43.54 per share (cost $27,838,284)       47,021,228
  PIMCO Variable Insurance Trust (Pimco):          
    PIMCO Total Return Portfolio, Administrative Class (Total Return) -      
      866,866.632 shares at $9.18 per share (cost $9,119,612)       7,957,836
    PIMCO Low Duration Portfolio, Administrative Class (Low Duration) -    
      611,777.388 shares at $9.60 per share (cost $6,328,861)       5,873,063
    PIMCO Short-Term Portfolio, Advisor Class (Short Term) -        
      124,638.354 shares at $10.23 per share (cost $1,269,182)       1,275,050
    PIMCO Emerging Markets Bond Portfolio, Advisor Class (Emerging) -    
      8,642.280 shares at $10.55 per share (cost $107,437)       91,176

 

 

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

FS-8 
 
AMERITAS VARIABLE SEPARATE ACCOUNT VA-2  
STATEMENTS OF NET ASSETS
DECEMBER 31, 2023
                 
                 
ASSETS, continued          
INVESTMENTS AT FAIR VALUE:          
                 
  PIMCO Variable Insurance Trust (Pimco), continued:          
    PIMCO Low Duration Portfolio, Advisor Class (Low Duration Adv.) -      
      14,444.172 shares at $9.60 per share (cost $144,048)     $ 138,664
    PIMCO Real Return Portfolio, Advisor Class (Real Return) -        
      355,942.010 shares at $11.57 per share (cost $4,493,445)       4,118,249
    PIMCO CommodityRealReturn(R) Strategy Portfolio, Advisor Class (Commodity) -    
      16,486.018 shares at $5.46 per share (cost $120,289)       90,014
  ALPS Variable Investment Trust (Ibbotson):          
    Morningstar Balanced ETF Asset Allocation Portfolio, Class II (Balanced) -    
      56,599.443 shares at $10.39 per share (cost $607,982)       588,068
    Morningstar Growth ETF Asset Allocation Portfolio, Class II (Growth) -    
      53,834.835 shares at $11.34 per share (cost $575,623)       610,487
    Morningstar Income and Growth ETF Asset Allocation Portfolio, Class II (Income) -    
      19,284.652 shares at $9.85 per share (cost $202,009)       189,954
  Franklin Templeton Variable Insurance Products Trust (Franklin Templeton):    
    Templeton Global Bond VIP Fund Portfolio, Class 2 (Global Bond) -        
      2,163,518.663 shares at $12.84 per share (cost $35,633,327)       27,779,580
    Franklin Income VIP Fund Portfolio, Class 2 (Income) -        
      189,284.706 shares at $14.20 per share (cost $2,827,074)       2,687,843
    Franklin Mutual Global Discovery VIP Fund Portfolio, Class 2 (Global Discovery) -    
      6,092.093 shares at $18.38 per share (cost $104,887)       111,973
    Franklin Small Cap Value VIP Fund Portfolio, Class 2 (Small Cap) -        
      29,312.306 shares at $13.27 per share (cost $438,988)       388,974
    Templeton Foreign VIP Fund Portfolio, Class 2 (Foreign) -        
      53,013.170 shares at $14.24 per share (cost $665,786)       754,908
  AB Variable Products Series Fund, Inc. (AllianceBernstein):        
    AB VPS Relative Value Portfolio, Class B (Growth and Income) -        
      11,987.628 shares at $28.78 per share (cost $347,486)       345,004
  American Funds Insurance Series(R) (American Funds):        
    American Funds(R) IS Managed Risk Asset Allocation Fund Portfolio, Class P2 (Managed) -
      2,295,197.007 shares at $11.53 per share (cost $29,096,047)       26,463,621
    American Funds(R) IS Washington Mutual Investors Fund Portfolio, Class 2 (Blue Chip) -
      189,063.524 shares at $14.21 per share (cost $2,638,056)       2,686,593
    American Funds(R) IS Global Growth Fund Portfolio, Class 2 (Global) -    
      38,435.754 shares at $33.44 per share (cost $1,336,788)       1,285,292
    American Funds(R) IS Growth Fund Portfolio, Class 2 (Growth) -        
      38,363.742 shares at $98.20 per share (cost $3,368,528)       3,767,319
    American Funds(R) IS International Fund Portfolio, Class 2 (International) -    
      32,449.248 shares at $17.41 per share (cost $624,246)       564,941

 

 

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

FS-9 
 
AMERITAS VARIABLE SEPARATE ACCOUNT VA-2  
STATEMENTS OF NET ASSETS
DECEMBER 31, 2023
                 
                 
ASSETS, continued          
INVESTMENTS AT FAIR VALUE:          
                 
  American Funds Insurance Series(R) (American Funds), continued:        
    American Funds(R) IS New World Fund(R) Portfolio, Class 2 (New World) -    
      28,686.102 shares at $25.17 per share (cost $739,707)     $ 722,029
    American Funds(R) IS Growth-Income Fund Portfolio, Class 2 (Growth-Income) -    
      35,569.513 shares at $58.30 per share (cost $1,827,016)       2,073,703
    American Funds(R) IS Asset Allocation Fund Portfolio, Class 2 (Asset) -    
      143,326.132 shares at $23.53 per share (cost $3,347,380)       3,372,464
  Columbia Funds Variable Insurance Trust (Columbia):          
    Columbia Variable Portfolio - Strategic Income Fund Portfolio, Class 2 (Strategic) -    
      59,362.577 shares at $3.65 per share (cost $234,994)       216,673
  Columbia Funds Variable Series Trust II (Columbia):          
    Columbia Variable Portfolio - Emerging Markets Fund Portfolio, Class 2 (Emerging) -    
      12,010.433 shares at $9.62 per share (cost $179,110)       115,540
    Columbia Variable Portfolio - Overseas Core Fund Portfolio, Class 2 (International) -    
      17,537.397 shares at $13.22 per share (cost $236,751)       231,844
    Columbia Variable Portfolio - Select Small Cap Value Fund Portfolio, Class 2 (Smaller-Cap) -
      7,805.871 shares at $33.38 per share (cost $197,673)       260,560
    Columbia Variable Portfolio - Select Mid Cap Value Fund Portfolio, Class 2 (Mid Cap) -    
      23,688.911 shares at $35.70 per share (cost $613,924)       845,694
    Columbia Variable Portfolio - High Yield Bond Fund Portfolio, Class 2 (High Yield) -    
      60,252.325 shares at $6.03 per share (cost $390,559)       363,322
    Columbia Variable Portfolio - Disciplined Core Fund Portfolio, Class 2 (Large Core) -    
      9,172.803 shares at $86.62 per share (cost $510,049)       794,548
  Delaware Ivy Variable Insurance Portfolios (Ivy):          
    Delaware Ivy VIP Asset Strategy Portfolio, Class II (Strategy) -        
      792.174 shares at $8.7600 per share (cost $7,179)         6,939
    Delaware Ivy VIP Balanced Portfolio, Class II (Balanced) -        
      420,723.380 shares at $5.4000 per share (cost $2,385,964)       2,271,906
    Delaware Ivy VIP Energy Portfolio, Class II (Energy) -        
      94,085.201 shares at $5.1000 per share (cost $446,937)       479,835
    Delaware Ivy VIP Smid Cap Core Portfolio, Class II (Small Cap Value) -    
      30,426.346 shares at $11.5200 per share (cost $415,924)       350,512
    Delaware Ivy VIP Science and Technology Portfolio, Class II (Science) -    
      80,720.056 shares at $22.9700 per share (cost $2,075,502)       1,854,140
    Delaware Ivy VIP Mid Cap Growth Portfolio, Class II (Mid Cap Growth) -    
      71,669.112 shares at $10.0000 per share (cost $843,337)       716,691
    Delaware Ivy VIP International Core Equity Portfolio, Class II (International) -    
      10,624.599 shares at $16.1500 per share (cost $164,197)       171,587

 

 

 

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

FS-10 
 
AMERITAS VARIABLE SEPARATE ACCOUNT VA-2  
STATEMENTS OF NET ASSETS
DECEMBER 31, 2023
                 
                 
ASSETS, continued          
INVESTMENTS AT FAIR VALUE:          
                 
  Delaware Ivy Variable Insurance Portfolios (Ivy), continued:        
    Delaware Ivy VIP Global Growth Portfolio, Class II (Global) -        
      32,170.699 shares at $3.1700 per share (cost $122,094)     $ 101,981
    Delaware Ivy VIP High Income Portfolio, Class II (High Income) -        
      65,219.676 shares at $2.9500 per share (cost $217,528)       192,398
  Janus Aspen Series (Janus):          
    Janus Henderson Flexible Bond Portfolio, Service Shares (Flexible) -      
      27,397.639 shares at $11.16 per share (cost $348,976)       305,758
  Putnam Variable Trust (Putnam):          
    Putnam VT Global Health Care Fund Portfolio, Class IB (Health) -        
      15,781.277 shares at $16.22 per share (cost $246,260)       255,972
    Putnam VT Global Asset Allocation Fund Portfolio, Class IB (Asset) -    
      15,004.291 shares at $17.86 per share (cost $265,113)       267,977
  VanEck VIP Trust (Van Eck):          
    VanEck VIP Global Gold Fund Portfolio, Class S Shares (Gold) -        
      28,055.209 shares at $8.38 per share (cost $232,402)       235,103
    VanEck VIP Global Resources Fund Portfolio, Class S Shares (Hard Assets) -    
      8,775.198 shares at $25.42 per share (cost $199,548)       223,066
                 
  NET ASSETS REPRESENTING EQUITY OF POLICYOWNERS      $  1,258,518,744
                 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

FS-11 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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FS-12 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Fidelity 
      Equity-Income      
      IC      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  294,109       
  Mortality and expense risk charge     (206,480)      
Net investment income(loss)     87,629       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     441,471       
  Net realized gain(loss) on sale of fund shares     154,571       
Net realized gain(loss)     596,042       
               
Change in unrealized appreciation/depreciation     686,959       
               
Net increase(decrease) in net assets resulting            
  from operations    $  1,370,630       
               
               
      Equity-Income IC
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  87,629     $  90,408 
  Net realized gain(loss)     596,042      766,991 
  Net change in unrealized appreciation/depreciation      686,959      (2,032,971)
Net increase(decrease) in net assets resulting            
  from operations     1,370,630      (1,175,572)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     20,722      31,599 
  Subaccounts transfers (including fixed account), net     (448,825)     (355,737)
  Transfers for policyowner benefits and terminations     (1,131,836)     (1,239,994)
  Policyowner maintenance charges     (26,247)     (28,589)
Net increase(decrease) from policyowner transactions     (1,586,186)     (1,592,721)
               
Total increase(decrease) in net assets     (215,556)     (2,768,293)
Net assets at beginning of period     16,182,997      18,951,290 
Net assets at end of period    $  15,967,441     $  16,182,997 
               
  The accompanying notes are an integral part of these financial statements.      

 

FS-13 
 

 

 

 

 

 

 

 Fidelity 
Equity-Income          Equity-Income                   
SC         SC2         Growth IC      
                                 
2023         2023         2023      
                                 
                                 
 $  33,578           $  154,218           $  29,060       
  (17,226)           (84,066)           (299,087)      
  16,352            70,152            (270,027)      
                                 
                                 
  53,178            264,637            1,051,118       
  47,403            69,773            768,472       
  100,581            334,410            1,819,590       
                                 
  54,474            397,806            5,203,707       
                                 
                                 
 $  171,407           $  802,368           $  6,753,270       
                                 
                                 
Equity-Income SC   Equity-Income SC2   Growth IC
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  16,352     $  15,289     $  70,152     $  69,064     $  (270,027)    $  (163,619)
  100,581      90,027      334,410      445,387      1,819,590      2,382,367 
  54,474      (224,238)     397,806      (1,191,351)     5,203,707      (9,664,400)
                                 
  171,407      (118,922)     802,368      (676,900)     6,753,270      (7,445,652)
                                 
                                 
                          -     4,367      21,203      37,074      59,532      36,981 
  415,366      15,043      (83,785)     (244,625)     (9,770)     (401,577)
  (568,677)     (188,962)     (810,915)     (775,453)     (2,419,028)     (1,478,480)
  (262)     (291)     (19,835)     (21,064)     (40,330)     (40,005)
  (153,573)     (169,843)     (893,332)     (1,004,068)     (2,409,596)     (1,883,081)
                                 
  17,834      (288,765)     (90,964)     (1,680,968)     4,343,674      (9,328,733)
  1,763,649      2,052,414      9,293,146      10,974,114      20,636,608      29,965,341 
 $  1,781,483     $  1,763,649     $  9,202,182     $  9,293,146     $  24,980,282     $  20,636,608 
                                 
                                 

 

FS-14 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Fidelity 
               
      Growth SC      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  976       
  Mortality and expense risk charge     (24,595)      
Net investment income(loss)     (23,619)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions     122,662       
  Net realized gain(loss) on sale of fund shares     45,747       
Net realized gain(loss)     168,409       
               
Change in unrealized appreciation/depreciation     633,446       
               
Net increase(decrease) in net assets resulting            
  from operations    $  778,236       
               
               
      Growth SC
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (23,619)    $  (11,540)
  Net realized gain(loss)     168,409      289,850 
  Net change in unrealized appreciation/depreciation      633,446      (1,120,344)
Net increase(decrease) in net assets resulting            
  from operations     778,236      (842,034)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners                             -                             -
  Subaccounts transfers (including fixed account), net     (27,791)     464 
  Transfers for policyowner benefits and terminations     (134,288)     (311,144)
  Policyowner maintenance charges     (350)     (410)
Net increase(decrease) from policyowner transactions     (162,429)     (311,090)
               
Total increase(decrease) in net assets     615,807      (1,153,124)
Net assets at beginning of period     2,296,868      3,449,992 
Net assets at end of period    $  2,912,675     $  2,296,868 
               
  The accompanying notes are an integral part of these financial statements.      

 

FS-15 
 

 

 

 

 

 

 

 Fidelity 
             High Income           High Income       
Growth SC2         IC         SC      
                                 
2023         2023         2023      
                                 
                                 
 $  266           $  150,614           $  25,145       
  (67,268)           (35,721)           (4,422)      
  (67,002)           114,893            20,723       
                                 
                                 
  335,188                                    -                                   -      
  149,908            (79,265)           (15,450)      
  485,096            (79,265)           (15,450)      
                                 
  1,672,797            194,414            36,095       
                                 
                                 
 $  2,090,891           $  230,042           $  41,368       
                                 
                                 
Growth SC2   High Income IC   High Income SC
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (67,002)    $  (41,271)    $  114,893     $  105,709     $  20,723     $  20,575 
  485,096      623,163      (79,265)     (117,488)     (15,450)     (18,278)
  1,672,797      (2,775,055)     194,414      (432,263)     36,095      (82,939)
                                 
  2,090,891      (2,193,163)     230,042      (444,042)     41,368      (80,642)
                                 
                                 
  41,866      13,691      13,570      15,409                              -     70 
  309,869      122,724      118,774      (240,790)     13,298      (83,730)
  (808,995)     (467,211)     (328,525)     (345,037)     (70,081)     (69,408)
  (13,454)     (13,124)     (4,077)     (4,802)     (86)     (104)
  (470,714)     (343,920)     (200,258)     (575,220)     (56,869)     (153,172)
                                 
  1,620,177      (2,537,083)     29,784      (1,019,262)     (15,501)     (233,814)
  6,163,394      8,700,477      2,722,007      3,741,269      477,514      711,328 
 $  7,783,571     $  6,163,394     $  2,751,791     $  2,722,007     $  462,013     $  477,514 
                                 
                                 

 

FS-16 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Fidelity 
      High Income      
      SC2      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  2,029,256       
  Mortality and expense risk charge     (354,264)      
Net investment income(loss)     1,674,992       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (1,267,944)      
Net realized gain(loss)     (1,267,944)      
               
Change in unrealized appreciation/depreciation     2,842,012       
               
Net increase(decrease) in net assets resulting            
  from operations    $  3,249,060       
               
               
      High Income SC2
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  1,674,992     $  1,665,325 
  Net realized gain(loss)     (1,267,944)     (1,312,490)
  Net change in unrealized appreciation/depreciation      2,842,012      (6,582,649)
Net increase(decrease) in net assets resulting            
  from operations     3,249,060      (6,229,814)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     106,683      184,356 
  Subaccounts transfers (including fixed account), net     356,404      (3,271,033)
  Transfers for policyowner benefits and terminations     (5,032,305)     (3,679,867)
  Policyowner maintenance charges     (336,324)     (375,282)
Net increase(decrease) from policyowner transactions     (4,905,542)     (7,141,826)
               
Total increase(decrease) in net assets     (1,656,482)     (13,371,640)
Net assets at beginning of period     38,425,406      51,797,046 
Net assets at end of period    $  36,768,924     $  38,425,406 
               
  The accompanying notes are an integral part of these financial statements.      

 

 

 

FS-17 
 

 

 

 

 

 

 

 Fidelity 
                                 
Overseas IC         Overseas SC         Overseas SC2      
                                 
2023         2023         2023      
                                 
                                 
 $  37,116           $  4,335           $  55,824       
  (47,410)           (4,452)           (68,843)      
  (10,294)           (117)           (13,019)      
                                 
                                 
  9,387            1,215            18,704       
  109,778            11,990            191,216       
  119,165            13,205            209,920       
                                 
  522,548            69,116            1,091,353       
                                 
                                 
 $  631,419           $  82,204           $  1,288,254       
                                 
                                 
Overseas IC   Overseas SC   Overseas SC2
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (10,294)    $  (10,650)    $  (117)    $  107     $  (13,019)    $  (4,511)
  119,165      152,092      13,205      8,041      209,920      238,306 
  522,548      (1,429,973)     69,116      (167,557)     1,091,353      (2,583,165)
                                 
  631,419      (1,288,531)     82,204      (159,409)     1,288,254      (2,349,370)
                                 
                                 
  13,291      12,123                              -     240      27,123      167,393 
  13,546      (47,861)     (24,057)     (2,858)     (723,873)     758,275 
  (340,794)     (353,165)     (39,475)     (15,880)     (377,895)     (819,797)
  (6,447)     (6,991)     (72)     (93)     (12,155)     (12,820)
  (320,404)     (395,894)     (63,604)     (18,591)     (1,086,800)     93,051 
                                 
  311,015      (1,684,425)     18,600      (178,000)     201,454      (2,256,319)
  3,449,426      5,133,851      454,994      632,994      7,199,315      9,455,634 
 $  3,760,441     $  3,449,426     $  473,594     $  454,994     $  7,400,769     $  7,199,315 
                                 
                                 

 

FS-18 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Fidelity 
               
      Asset Mgr. IC      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  135,725       
  Mortality and expense risk charge     (76,443)      
Net investment income(loss)     59,282       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     66,440       
  Net realized gain(loss) on sale of fund shares     (21,096)      
Net realized gain(loss)     45,344       
               
Change in unrealized appreciation/depreciation     548,510       
               
Net increase(decrease) in net assets resulting            
  from operations    $  653,136       
               
               
      Asset Mgr. IC
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  59,282     $  48,473 
  Net realized gain(loss)     45,344      468,092 
  Net change in unrealized appreciation/depreciation      548,510      (1,773,001)
Net increase(decrease) in net assets resulting            
  from operations     653,136      (1,256,436)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     4,194      4,889 
  Subaccounts transfers (including fixed account), net     (354,708)     (132,866)
  Transfers for policyowner benefits and terminations     (386,599)     (576,923)
  Policyowner maintenance charges     (15,222)     (17,311)
Net increase(decrease) from policyowner transactions     (752,335)     (722,211)
               
Total increase(decrease) in net assets     (99,199)     (1,978,647)
Net assets at beginning of period     6,096,290      8,074,937 
Net assets at end of period    $  5,997,091     $  6,096,290 
               
  The accompanying notes are an integral part of these financial statements.      

 

FS-19 
 

 

 

 

 

 

 

 Fidelity 
             Asset Mgr.                   
Asset Mgr. SC         SC2         Inv. Bond IC      
                                 
2023         2023         2023      
                                 
                                 
 $  22,594           $  30,563           $  107,044       
  (9,360)           (13,619)           (54,814)      
  13,234            16,944            52,230       
                                 
                                 
  10,714            16,651                                    -      
  (1,645)           (3,956)           (135,043)      
  9,069            12,695            (135,043)      
                                 
  88,748            132,128            282,360       
                                 
                                 
 $  111,051           $  161,767           $  199,547       
                                 
                                 
Asset Mgr. SC   Asset Mgr. SC2   Inv. Bond IC
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  13,234     $  9,964     $  16,944     $  13,710     $  52,230     $  42,336 
  9,069      81,527      12,695      118,955      (135,043)     147,650 
  88,748      (291,689)     132,128      (446,673)     282,360      (1,035,401)
                                 
  111,051      (200,198)     161,767      (314,008)     199,547      (845,415)
                                 
                                 
                          -                             -     5,230      4,800      19,622      23,983 
  1,582      (72,997)     (41,751)     (47,393)     100,397      (477,287)
  (38,973)     (95,748)     (136,640)     (207,766)     (615,194)     (627,302)
  (146)     (173)     (3,303)     (3,772)     (5,489)     (7,004)
  (37,537)     (168,918)     (176,464)     (254,131)     (500,664)     (1,087,610)
                                 
  73,514      (369,116)     (14,697)     (568,139)     (301,117)     (1,933,025)
  965,805      1,334,921      1,468,574      2,036,713      4,512,421      6,445,446 
 $  1,039,319     $  965,805     $  1,453,877     $  1,468,574     $  4,211,304     $  4,512,421 
                                 
                                 

 

FS-20 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Fidelity 
               
      Inv. Bond SC2      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  1,516,191       
  Mortality and expense risk charge     (586,834)      
Net investment income(loss)     929,357       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (1,079,790)      
Net realized gain(loss)     (1,079,790)      
               
Change in unrealized appreciation/depreciation     3,128,653       
               
Net increase(decrease) in net assets resulting            
  from operations    $  2,978,220       
               
               
      Inv. Bond SC2
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  929,357     $  729,510 
  Net realized gain(loss)     (1,079,790)     2,544,746 
  Net change in unrealized appreciation/depreciation      3,128,653      (14,529,348)
Net increase(decrease) in net assets resulting            
  from operations     2,978,220      (11,255,092)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     478,264      353,188 
  Subaccounts transfers (including fixed account), net     3,733,551      (2,535,683)
  Transfers for policyowner benefits and terminations     (7,248,229)     (7,100,254)
  Policyowner maintenance charges     (573,962)     (644,727)
Net increase(decrease) from policyowner transactions     (3,610,376)     (9,927,476)
               
Total increase(decrease) in net assets     (632,156)     (21,182,568)
Net assets at beginning of period     62,592,795      83,775,363 
Net assets at end of period    $  61,960,639     $  62,592,795 
               
  The accompanying notes are an integral part of these financial statements.      

 

FS-21 
 

 

 

 

 

 

 

 Fidelity 
                                 
Contrafund IC         Contrafund SC         Contrafund SC2      
                                 
2023         2023         2023      
                                 
                                 
 $  86,432           $  16,165           $  69,340       
  (241,149)           (40,800)           (260,637)      
  (154,717)           (24,635)           (191,297)      
                                 
                                 
  630,659            148,754            994,781       
  626,591            162,643            1,019,945       
  1,257,250            311,397            2,014,726       
                                 
  3,795,537            905,975            5,744,005       
                                 
                                 
 $  4,898,070           $  1,192,737           $  7,567,434       
                                 
                                 
Contrafund IC   Contrafund SC   Contrafund SC2
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (154,717)    $  (160,971)    $  (24,635)    $  (24,256)    $  (191,297)    $  (189,652)
  1,257,250      1,405,562      311,397      504,995      2,014,726      2,147,535 
  3,795,537      (7,810,319)     905,975      (2,029,845)     5,744,005      (11,515,533)
                                 
  4,898,070      (6,565,728)     1,192,737      (1,549,106)     7,567,434      (9,557,650)
                                 
                                 
  93,994      76,379                              -     18,150      781,617      373,572 
  (395,573)     (366,319)     (157,189)     (24,373)     (1,882,557)     (144,264)
  (1,637,657)     (1,181,617)     (386,005)     (774,770)     (2,156,187)     (1,906,087)
  (20,356)     (22,298)     (510)     (529)     (49,922)     (51,922)
  (1,959,592)     (1,493,855)     (543,704)     (781,522)     (3,307,049)     (1,728,701)
                                 
  2,938,478      (8,059,583)     649,033      (2,330,628)     4,260,385      (11,286,351)
  16,452,453      24,512,036      3,882,659      6,213,287      24,821,661      36,108,012 
 $  19,390,931     $  16,452,453     $  4,531,692     $  3,882,659     $  29,082,046     $  24,821,661 
                                 
                                 

 

FS-22 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Fidelity 
      Asset  Mgr. Gr.      
      IC      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  16,605       
  Mortality and expense risk charge     (13,741)      
Net investment income(loss)     2,864       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     41,904       
Net realized gain(loss)     41,904       
               
Change in unrealized appreciation/depreciation     86,689       
               
Net increase(decrease) in net assets resulting            
  from operations    $  131,457       
               
               
      Asset Mgr. Gr. IC
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  2,864     $  4,370 
  Net realized gain(loss)     41,904      89,504 
  Net change in unrealized appreciation/depreciation      86,689      (323,622)
Net increase(decrease) in net assets resulting            
  from operations     131,457      (229,748)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     74      1,374 
  Subaccounts transfers (including fixed account), net     2,039      (8,302)
  Transfers for policyowner benefits and terminations     (197,707)     (64,200)
  Policyowner maintenance charges     (1,276)     (1,399)
Net increase(decrease) from policyowner transactions     (196,870)     (72,527)
               
Total increase(decrease) in net assets     (65,413)     (302,275)
Net assets at beginning of period     994,480      1,296,755 
Net assets at end of period    $  929,067     $  994,480 
               
  The accompanying notes are an integral part of these financial statements.      

 

FS-23 
 

 

 

 

 

 

 

 Fidelity 
Asset Mgr. Gr.          Asset Mgr. Gr.                   
SC         SC2         Mid Cap SC2      
                                 
2023         2023         2023      
                                 
                                 
 $  2,356           $  8,261           $  14,348       
  (1,258)           (4,715)           (37,862)      
  1,098            3,546            (23,514)      
                                 
                                 
                          -                                   -           107,234       
  475            5,437            (21,174)      
  475            5,437            86,060       
                                 
  17,254            61,464            418,260       
                                 
                                 
 $  18,827           $  70,447           $  480,806       
                                 
                                 
Asset Mgr. Gr. SC   Asset Mgr. Gr. SC2   Mid Cap SC2
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  1,098     $  1,079     $  3,546     $  3,126     $  (23,514)    $  (31,546)
  475      8,943      5,437      44,550      86,060      249,463 
  17,254      (37,090)     61,464      (180,084)     418,260      (1,025,350)
                                 
  18,827      (27,068)     70,447      (132,408)     480,806      (807,433)
                                 
                                 
                          -                             -     1,766      6,185      169,785      127,891 
  427      323      (41)     (10,208)     28,543      (141,403)
  (958)     (951)     (71,394)     (77,557)     (454,813)     (548,147)
  (29)     (30)     (1,842)     (2,223)     (7,239)     (8,224)
  (560)     (658)     (71,511)     (83,803)     (263,724)     (569,883)
                                 
  18,267      (27,726)     (1,064)     (216,211)     217,082      (1,377,316)
  124,922      152,648      500,761      716,972      3,703,564      5,080,880 
 $  143,189     $  124,922     $  499,697     $  500,761     $  3,920,646     $  3,703,564 
                                 
                                 

 

FS-24 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

    Fidelity
               
      Money Market      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  645,558       
  Mortality and expense risk charge     (140,728)      
Net investment income(loss)     504,830       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares                             -      
Net realized gain(loss)                             -      
               
Change in unrealized appreciation/depreciation                             -      
               
Net increase(decrease) in net assets resulting            
  from operations    $  504,830       
               
               
      Money Market
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  504,830     $  66,761 
  Net realized gain(loss)                             -                             -
  Net change in unrealized appreciation/depreciation                              -                             -
Net increase(decrease) in net assets resulting            
  from operations     504,830      66,761 
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     202,891      347,774 
  Subaccounts transfers (including fixed account), net     7,812,063      14,470,785 
  Transfers for policyowner benefits and terminations     (9,885,289)     (11,826,972)
  Policyowner maintenance charges     (31,900)     (31,402)
Net increase(decrease) from policyowner transactions     (1,902,235)     2,960,185 
               
Total increase(decrease) in net assets     (1,397,405)     3,026,946 
Net assets at beginning of period     14,659,741      11,632,795 
Net assets at end of period    $  13,262,336     $  14,659,741 
               
  The accompanying notes are an integral part of these financial statements.      

 

FS-25 
 

 

 

 

 

 

 

 Fidelity 
Money Market          Index 500                   
SC2         SC2         Strategic SC2      
                                 
2023         2023         2023      
                                 
                                 
 $  106,922           $  108,268           $  19,839       
  (23,588)           (85,353)           (4,527)      
  83,334            22,915            15,312       
                                 
                                 
                          -           80,966                                    -      
                          -           288,172            (5,264)      
                          -           369,138            (5,264)      
                                 
                          -           1,501,691            25,601       
                                 
                                 
 $  83,334           $  1,893,744           $  35,649       
                                 
                                 
Money Market SC2   Index 500 SC2   Strategic SC2
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  83,334     $  17,403     $  22,915     $  15,901     $  15,312     $  11,481 
                          -                             -     369,138      505,776      (5,264)     (13,502)
                          -                             -     1,501,691      (2,475,283)     25,601      (73,801)
                                 
  83,334      17,403      1,893,744      (1,953,606)     35,649      (75,822)
                                 
                                 
  88,306      579,761      707,097      495,519      214      49,791 
  (116,934)     3,222,812      (79,689)     (769,535)     (16,939)     20,707 
  (690,673)     (2,017,400)     (781,691)     (733,215)     (14,350)     (120,111)
  (2,522)     (2,354)     (5,094)     (5,124)     (326)     (387)
  (721,823)     1,782,819      (159,377)     (1,012,355)     (31,401)     (50,000)
                                 
  (638,489)     1,800,222      1,734,367      (2,965,961)     4,248      (125,822)
  2,710,445      910,223      7,436,074      10,402,035      460,553      586,375 
 $  2,071,956     $  2,710,445     $  9,170,441     $  7,436,074     $  464,801     $  460,553 
                                 
                                 

 

FS-26 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Alger 
               
      Balanced      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  81,650       
  Mortality and expense risk charge     (64,376)      
Net investment income(loss)     17,274       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     19,605       
  Net realized gain(loss) on sale of fund shares     247,948       
Net realized gain(loss)     267,553       
               
Change in unrealized appreciation/depreciation     577,603       
               
Net increase(decrease) in net assets resulting            
  from operations    $  862,430       
               
               
      Balanced
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  17,274     $                 (1,899)
  Net realized gain(loss)     267,553      488,446 
  Net change in unrealized appreciation/depreciation      577,603      (1,360,580)
Net increase(decrease) in net assets resulting            
  from operations     862,430      (874,033)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     16,113      11,402 
  Subaccounts transfers (including fixed account), net     113,960      (302,686)
  Transfers for policyowner benefits and terminations     (895,879)     (627,556)
  Policyowner maintenance charges     (7,608)     (8,298)
Net increase(decrease) from policyowner transactions     (773,414)     (927,138)
               
Total increase(decrease) in net assets     89,016      (1,801,171)
Net assets at beginning of period     5,576,542      7,377,713 
Net assets at end of period    $  5,665,558     $  5,576,542 
               
  The accompanying notes are an integral part of these financial statements.      

 

FS-27 
 

 

 

 

 

 

 

 MFS 
             New                    
Utilities         Discovery         Total Return      
                                 
2023         2023         2023      
                                 
                                 
 $  889,832           $                          -          $  99,185       
  (266,209)           (67,124)           (48,883)      
  623,623            (67,124)           50,302       
                                 
                                 
  1,376,880                                    -           206,574       
  507,970            (372,144)           (33,353)      
  1,884,850            (372,144)           173,221       
                                 
  (3,332,917)           1,240,803            210,366       
                                 
                                 
 $  (824,444)          $  801,535           $  433,889       
                                 
                                 
Utilities   New Discovery   Total Return
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  623,623     $  369,999     $  (67,124)    $  (74,854)    $  50,302     $  41,522 
  1,884,850      2,166,288      (372,144)     1,916,415      173,221      652,490 
  (3,332,917)     (2,664,615)     1,240,803      (4,817,184)     210,366      (1,372,835)
                                 
  (824,444)     (128,328)     801,535      (2,975,623)     433,889      (678,823)
                                 
                                 
  149,386      364,395      43,824      29,151      25,452      129,045 
  65,263      (438,336)     (6,728)     103,232      (175,804)     (406,304)
  (1,882,602)     (2,467,170)     (525,903)     (670,380)     (492,152)     (701,985)
  (36,545)     (41,163)     (10,545)     (11,447)     (7,439)     (9,687)
  (1,704,498)     (2,582,274)     (499,352)     (549,444)     (649,943)     (988,931)
                                 
  (2,528,942)     (2,710,602)     302,183      (3,525,067)     (216,054)     (1,667,754)
  27,646,868      30,357,470      6,291,408      9,816,475      5,239,584      6,907,338 
 $  25,117,926     $  27,646,868     $  6,593,591     $  6,291,408     $  5,023,530     $  5,239,584 
                                 
                                 

 

FS-28 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       MFS 
               
      Growth SC      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $                          -      
  Mortality and expense risk charge     (7,869)      
Net investment income(loss)     (7,869)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions     64,366       
  Net realized gain(loss) on sale of fund shares     227       
Net realized gain(loss)     64,593       
               
Change in unrealized appreciation/depreciation     175,474       
               
Net increase(decrease) in net assets resulting            
  from operations    $  232,198       
               
               
      Growth SC
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (7,869)    $  (7,952)
  Net realized gain(loss)     64,593      101,448 
  Net change in unrealized appreciation/depreciation      175,474      (456,789)
Net increase(decrease) in net assets resulting            
  from operations     232,198      (363,293)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     91,850      20,647 
  Subaccounts transfers (including fixed account), net     33,549      (196,078)
  Transfers for policyowner benefits and terminations     (71,707)     (12,033)
  Policyowner maintenance charges     (733)     (784)
Net increase(decrease) from policyowner transactions     52,959      (188,248)
               
Total increase(decrease) in net assets     285,157      (551,541)
Net assets at beginning of period     651,890      1,203,431 
Net assets at end of period    $  937,047     $  651,890 
               
  The accompanying notes are an integral part of these financial statements.      

 

FS-29 
 

 

 

 

 

 

 

 MFS 
 New Discovery                               
SC         Utilities SC         Strategic      
                                 
2023         2023         2023      
                                 
                                 
 $                          -          $  101,172           $  100,812       
  (6,921)           (29,767)           (27,166)      
  (6,921)           71,405            73,646       
                                 
                                 
                          -           169,702                                    -      
  (42,107)           1,855            (106,103)      
  (42,107)           171,557            (106,103)      
                                 
  138,165            (342,794)           206,125       
                                 
                                 
 $  89,137           $  (99,832)          $  173,668       
                                 
                                 
New Discovery SC   Utilities SC   Strategic
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (6,921)    $  (8,338)    $  71,405     $  26,187     $  73,646     $  67,973 
  (42,107)     174,366      171,557      110,235      (106,103)     (94,008)
  138,165      (524,414)     (342,794)     (139,241)     206,125      (471,370)
                                 
  89,137      (358,386)     (99,832)     (2,819)     173,668      (497,405)
                                 
                                 
  21,880      70,810      1,137,680      191,776      3,248      6,122 
  (27,931)     (6,447)     (1,505)     (43,495)     651,553      (232,596)
  (9,013)     (152,007)     (96,807)     (24,563)     (423,473)     (388,289)
  (746)     (1,277)     (3,811)     (2,738)     (4,733)     (4,595)
  (15,810)     (88,921)     1,035,557      120,980      226,595      (619,358)
                                 
  73,327      (447,307)     935,725      118,161      400,263      (1,116,763)
  685,851      1,133,158      2,097,971      1,979,810      2,498,189      3,614,952 
 $  759,178     $  685,851     $  3,033,696     $  2,097,971     $  2,898,452     $  2,498,189 
                                 
                                 

 

FS-30 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       MFS 
               
      Research      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  259,774       
  Mortality and expense risk charge     (235,193)      
Net investment income(loss)     24,581       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     144,225       
Net realized gain(loss)     144,225       
               
Change in unrealized appreciation/depreciation     2,671,507       
               
Net increase(decrease) in net assets resulting            
  from operations    $  2,840,313       
               
               
      Research
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  24,581     $  243,941 
  Net realized gain(loss)     144,225      634,038 
  Net change in unrealized appreciation/depreciation      2,671,507      (6,884,238)
Net increase(decrease) in net assets resulting            
  from operations     2,840,313      (6,006,259)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     91,968      142,669 
  Subaccounts transfers (including fixed account), net     (482,471)     761,952 
  Transfers for policyowner benefits and terminations     (2,742,519)     (2,315,881)
  Policyowner maintenance charges     (209,210)     (229,837)
Net increase(decrease) from policyowner transactions     (3,342,232)     (1,641,097)
               
Total increase(decrease) in net assets     (501,919)     (7,647,356)
Net assets at beginning of period     25,287,200      32,934,556 
Net assets at end of period    $  24,785,281     $  25,287,200 
               
  The accompanying notes are an integral part of these financial statements.      

 

FS-31 
 

 

 

 

 

 

 

 MFS 
 Blended Core                               
SC         Corporate SC         Government SC      
                                 
2023         2023         2023      
                                 
                                 
 $  1,964           $  39,189           $  1,011       
  (1,562)           (9,167)           (827)      
  402            30,022            184       
                                 
                                 
  14,575                                    -                                   -      
  641            (5,416)           (1,718)      
  15,216            (5,416)           (1,718)      
                                 
  25,271            42,088            4,089       
                                 
                                 
 $  40,889           $  66,694           $  2,555       
                                 
                                 
Blended Core SC   Corporate SC   Government SC
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  402     $  (339)    $  30,022     $  8,184     $  184     $  (2,628)
  15,216      14,916      (5,416)     999      (1,718)     (123,484)
  25,271      (31,166)     42,088      (112,940)     4,089      19,162 
                                 
  40,889      (16,589)     66,694      (103,757)     2,555      (106,950)
                                 
                                 
  75,561      40,367      257,576      53,027      3,474      2,349 
  31,279      (56,057)     365,006      (3,017)     (6)     (938,036)
  (17,260)     (4,699)     (20,576)     (150,205)     (9,470)     (18,899)
  (121)     (69)     (1,110)     (797)     (96)     (475)
  89,459      (20,458)     600,896      (100,992)     (6,098)     (955,061)
                                 
  130,348      (37,047)     667,590      (204,749)     (3,543)     (1,062,011)
  107,601      144,648      440,387      645,136      89,625      1,151,636 
 $  237,949     $  107,601     $  1,107,977     $  440,387     $  86,082     $  89,625 
                                 
                                 

 

FS-32 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       MFS 
      Growth       
      Allocation SC      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  8,033       
  Mortality and expense risk charge     (3,588)      
Net investment income(loss)     4,445       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     30,573       
  Net realized gain(loss) on sale of fund shares     (6,161)      
Net realized gain(loss)     24,412       
               
Change in unrealized appreciation/depreciation     23,504       
               
Net increase(decrease) in net assets resulting            
  from operations    $  52,361       
               
               
      Growth Allocation SC
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  4,445     $  4,301 
  Net realized gain(loss)     24,412      (62,564)
  Net change in unrealized appreciation/depreciation      23,504      (159,873)
Net increase(decrease) in net assets resulting            
  from operations     52,361      (218,136)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     65,243      19,876 
  Subaccounts transfers (including fixed account), net     (25,136)     (3,828)
  Transfers for policyowner benefits and terminations     (1,157)     (444,196)
  Policyowner maintenance charges     (944)     (2,386)
Net increase(decrease) from policyowner transactions     38,006      (430,534)
               
Total increase(decrease) in net assets     90,367      (648,670)
Net assets at beginning of period     346,445      995,115 
Net assets at end of period    $  436,812     $  346,445 
               
  The accompanying notes are an integral part of these financial statements.      

 

FS-33 
 

 

 

 

 

 

 

 MFS 
            Conservative          Blended       
Moderate SC         SC         Small Cap SC      
                                 
2023         2023         2023      
                                 
                                 
 $  20,261           $  9,348           $  1,290       
  (7,955)           (3,497)           (2,417)      
  12,306            5,851            (1,127)      
                                 
                                 
  53,449            15,154            8,515       
  (7,985)           (3,166)           (6,701)      
  45,464            11,988            1,814       
                                 
  30,873            12,604            40,979       
                                 
                                 
 $  88,643           $  30,443           $  41,666       
                                 
                                 
Moderate SC   Conservative SC   Blended Small Cap SC
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  12,306     $  6,387     $  5,851     $  4,206     $  (1,127)    $  (997)
  45,464      61,499      11,988      20,498      1,814      59,638 
  30,873      (223,759)     12,604      (80,956)     40,979      (111,711)
                                 
  88,643      (155,873)     30,443      (56,252)     41,666      (53,070)
                                 
                                 
  57,479      286,472      8,610      59,144      16,442      76,060 
  (279)     14,852      1,698      91,236      (10,341)     62,150 
  (32,911)     (142,236)     (14,818)     (60,935)     (1,827)     (11,215)
  (874)     (911)     (1,048)     (1,091)     (205)     (222)
  23,415      158,177      (5,558)     88,354      4,069      126,773 
                                 
  112,058      2,304      24,885      32,102      45,735      73,703 
  758,376      756,072      343,613      311,511      237,504      163,801 
 $  870,434     $  758,376     $  368,498     $  343,613     $  283,239     $  237,504 
                                 
                                 

 

FS-34 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       MFS 
       Global       
      Real Estate IC      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  203       
  Mortality and expense risk charge     (270)      
Net investment income(loss)     (67)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions     1,649       
  Net realized gain(loss) on sale of fund shares     (6,282)      
Net realized gain(loss)     (4,633)      
               
Change in unrealized appreciation/depreciation     6,686       
               
Net increase(decrease) in net assets resulting            
  from operations    $  1,986       
               
               
      Global Real Estate IC
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (67)    $  318 
  Net realized gain(loss)     (4,633)     1,191 
  Net change in unrealized appreciation/depreciation      6,686      (17,998)
Net increase(decrease) in net assets resulting            
  from operations     1,986      (16,489)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     60      55 
  Subaccounts transfers (including fixed account), net     (17,872)     20,350 
  Transfers for policyowner benefits and terminations     (6,215)     (118)
  Policyowner maintenance charges     (46)     (124)
Net increase(decrease) from policyowner transactions     (24,073)     20,163 
               
Total increase(decrease) in net assets     (22,087)     3,674 
Net assets at beginning of period     47,176      43,502 
Net assets at end of period    $  25,089     $  47,176 
               
  The accompanying notes are an integral part of these financial statements.      

 

FS-35 
 

 

 

 

 

 

 

 MFS     Van Kampen 
 Global           Emerging                   
Real Estate SC         Markets         Intl. Magnum      
                                 
2023         2023         2023      
                                 
                                 
 $  530           $  296,792           $  19,443       
  (796)           (178,951)           (12,205)      
  (266)           117,841            7,238       
                                 
                                 
  6,747            321,267                                    -      
  (1,238)           (381,326)           (67,847)      
  5,509            (60,059)           (67,847)      
                                 
  5,031            1,872,915            192,993       
                                 
                                 
 $  10,274           $  1,930,697           $  132,384       
                                 
                                 
Global Real Estate SC   Emerging Markets   Intl. Magnum
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (266)    $  4     $  117,841     $  (109,576)    $  7,238     $  (13,914)
  5,509      577      (60,059)     1,959,292      (67,847)     200,744 
  5,031      (9,425)     1,872,915      (8,347,433)     192,993      (458,433)
                                 
  10,274      (8,844)     1,930,697      (6,497,717)     132,384      (271,603)
                                 
                                 
  85,415      26,901      87,333      124,208      4,847      4,196 
  (840)     (8,680)     (60,681)     1,952,437      (102,932)     3,401 
  (1,191)     (228)     (2,005,223)     (1,786,595)     (138,236)     (156,994)
  (131)     (36)     (132,905)     (144,599)     (1,989)     (2,203)
  83,253      17,957      (2,111,476)     145,451      (238,310)     (151,600)
                                 
  93,527      9,113      (180,779)     (6,352,266)     (105,926)     (423,203)
  35,575      26,462      18,609,479      24,961,745      1,158,230      1,581,433 
 $  129,102     $  35,575     $  18,428,700     $  18,609,479     $  1,052,304     $  1,158,230 
                                 
                                 

 

FS-36 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

      Van Kampen
      U.S. Real      
      Estate      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  1,073,688       
  Mortality and expense risk charge     (458,884)      
Net investment income(loss)     614,804       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (1,239,106)      
Net realized gain(loss)     (1,239,106)      
               
Change in unrealized appreciation/depreciation     6,791,682       
               
Net increase(decrease) in net assets resulting            
  from operations    $  6,167,380       
               
               
      U.S. Real Estate
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  614,804     $  130,929 
  Net realized gain(loss)     (1,239,106)     12,042,953 
  Net change in unrealized appreciation/depreciation      6,791,682      (29,813,189)
Net increase(decrease) in net assets resulting            
  from operations     6,167,380      (17,639,307)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     157,216      467,640 
  Subaccounts transfers (including fixed account), net     1,505,647      805,164 
  Transfers for policyowner benefits and terminations     (4,584,676)     (4,606,271)
  Policyowner maintenance charges     (342,221)     (379,528)
Net increase(decrease) from policyowner transactions     (3,264,034)     (3,712,995)
               
Total increase(decrease) in net assets     2,903,346      (21,352,302)
Net assets at beginning of period     47,224,743      68,577,045 
Net assets at end of period    $  50,128,089     $  47,224,743 
               
  The accompanying notes are an integral part of these financial statements.      

 

FS-37 
 

 

 

 

 

 

 

Van Kampen   Calvert
                                 
Global II         Balanced         Mid Cap      
                                 
2023         2023         2023      
                                 
                                 
 $  1,303           $  86,449           $  3,352       
  (818)           (59,747)           (17,561)      
  485            26,702            (14,209)      
                                 
                                 
                          -           20,709                                    -      
  (341)           45,802            (17,058)      
  (341)           66,511            (17,058)      
                                 
  9,829            703,397            208,985       
                                 
                                 
 $  9,973           $  796,610           $  177,718       
                                 
                                 
Global II   Balanced   Mid Cap
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  485     $  (650)    $  26,702     $  6,028     $  (14,209)    $  (18,568)
  (341)     11,551      66,511      672,670      (17,058)     384,782 
  9,829      (24,726)     703,397      (1,832,872)     208,985      (821,098)
                                 
  9,973      (13,825)     796,610      (1,154,174)     177,718      (454,884)
                                 
                                 
                          -     18,759      29,181      40,292                              -                             -
  237      459      (12,228)     (20,068)     (23,014)     (1,759)
  (1,918)     (5,534)     (436,774)     (712,138)     (55,924)     (84,987)
  (209)     (192)     (7,315)     (7,825)     (2,937)     (3,279)
  (1,890)     13,492      (427,136)     (699,739)     (81,875)     (90,025)
                                 
  8,083      (333)     369,474      (1,853,913)     95,843      (544,909)
  78,416      78,749      5,387,211      7,241,124      1,725,805      2,270,714 
 $  86,499     $  78,416     $  5,756,685     $  5,387,211     $  1,821,648     $  1,725,805 
                                 
                                 

 

FS-38 
 

 


AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Calvert 
               
      Balanced F      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  20,945       
  Mortality and expense risk charge     (13,171)      
Net investment income(loss)     7,774       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     5,017       
  Net realized gain(loss) on sale of fund shares     5,021       
Net realized gain(loss)     10,038       
               
Change in unrealized appreciation/depreciation     174,360       
               
Net increase(decrease) in net assets resulting            
  from operations    $  192,172       
               
               
      Balanced F
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  7,774     $  856 
  Net realized gain(loss)     10,038      34,180 
  Net change in unrealized appreciation/depreciation      174,360      (96,798)
Net increase(decrease) in net assets resulting            
  from operations     192,172      (61,762)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     1,020,005      51,495 
  Subaccounts transfers (including fixed account), net     (129,805)     (789)
  Transfers for policyowner benefits and terminations     (15,974)     (12,435)
  Policyowner maintenance charges     (1,554)     (543)
Net increase(decrease) from policyowner transactions     872,672      37,728 
               
Total increase(decrease) in net assets     1,064,844      (24,034)
Net assets at beginning of period     328,948      352,982 
Net assets at end of period    $  1,393,792     $  328,948 
               
  The accompanying notes are an integral part of these financial statements.      

 

FS-39 
 

 

 

 

 

 

 

 American Century 
Income &         Mid Cap         Inc. & Growth       
Growth         Value         II      
                                 
2023         2023         2023      
                                 
                                 
 $  586,350           $  179,193           $  18,394       
  (370,495)           (77,398)           (14,169)      
  215,855            101,795            4,225       
                                 
                                 
                          -           850,563                                    -      
  (994,647)           8,636            (49,817)      
  (994,647)           859,199            (49,817)      
                                 
  3,589,584            (575,332)           144,181       
                                 
                                 
 $  2,810,792           $  385,662           $  98,589       
                                 
                                 
Income & Growth   Mid Cap Value   Inc. & Growth II
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  215,855     $  330,602     $  101,795     $  110,114     $  4,225     $  5,759 
  (994,647)     10,348,117      859,199      1,541,717      (49,817)     220,998 
  3,589,584      (17,337,526)     (575,332)     (1,890,147)     144,181      (382,857)
                                 
  2,810,792      (6,658,807)     385,662      (238,316)     98,589      (156,100)
                                 
                                 
  184,173      298,675      101,103      82,909      519,232      7,708 
  1,357,630      (2,749,773)     403,352      (1,153,047)     (71,764)     139,502 
  (4,436,577)     (4,094,776)     (948,348)     (826,484)     (61,844)     (90,675)
  (258,813)     (290,885)     (13,892)     (15,722)     (1,592)     (1,032)
  (3,153,587)     (6,836,759)     (457,785)     (1,912,344)     384,032      55,503 
                                 
  (342,795)     (13,495,566)     (72,123)     (2,150,660)     482,621      (100,597)
  38,937,292      52,432,858      8,076,237      10,226,897      1,006,233      1,106,830 
 $  38,594,497     $  38,937,292     $  8,004,114     $  8,076,237     $  1,488,854     $  1,006,233 
                                 
                                 

 

 

FS-40 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       AIM 
       Intl.       
      Growth      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  14,398       
  Mortality and expense risk charge     (73,280)      
Net investment income(loss)     (58,882)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions     5,391       
  Net realized gain(loss) on sale of fund shares     (56,602)      
Net realized gain(loss)     (51,211)      
               
Change in unrealized appreciation/depreciation     1,297,665       
               
Net increase(decrease) in net assets resulting            
  from operations    $  1,187,572       
               
               
      Intl. Growth
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (58,882)    $  60,160 
  Net realized gain(loss)     (51,211)     864,625 
  Net change in unrealized appreciation/depreciation      1,297,665      (2,771,959)
Net increase(decrease) in net assets resulting            
  from operations     1,187,572      (1,847,174)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     44,300      47,575 
  Subaccounts transfers (including fixed account), net     (354,077)     313,128 
  Transfers for policyowner benefits and terminations     (910,923)     (605,745)
  Policyowner maintenance charges     (12,608)     (13,830)
Net increase(decrease) from policyowner transactions     (1,233,308)     (258,872)
               
Total increase(decrease) in net assets     (45,736)     (2,106,046)
Net assets at beginning of period     7,581,720      9,687,766 
Net assets at end of period    $  7,535,984     $  7,581,720 
               
  The accompanying notes are an integral part of these financial statements.      

 

FS-41 
 

 

 

 

 

 

 

 AIM 
                        Discovery      
Global         Global Value         Mid Cap      
                                 
2023         2023         2023      
                                 
                                 
 $  34,581           $  14,987           $                          -      
  (22,114)           (28,603)           (23,572)      
  12,467            (13,616)           (23,572)      
                                 
                                 
                          -           1,927                                    -      
  (40,571)           (62,791)           (124,300)      
  (40,571)           (60,864)           (124,300)      
                                 
  219,880            574,248            405,926       
                                 
                                 
 $  191,776           $  499,768           $  258,054       
                                 
                                 
Global   Global Value   Discovery Mid Cap
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  12,467     $  44,960     $  (13,616)    $  (20,883)    $  (23,572)    $  (27,729)
  (40,571)     4,757      (60,864)     151,925      (124,300)     722,762 
  219,880      (758,868)     574,248      (937,050)     405,926      (1,864,663)
                                 
  191,776      (709,151)     499,768      (806,008)     258,054      (1,169,630)
                                 
                                 
  4,890      6,666      7,529      18,226      16,861      19,377 
  75,399      169,666      (23,113)     63,689      (106,528)     99,546 
  (114,145)     (125,671)     (346,286)     (205,062)     (210,160)     (369,672)
  (3,621)     (3,810)     (4,330)     (4,719)     (3,754)     (4,345)
  (37,477)     46,851      (366,200)     (127,866)     (303,581)     (255,094)
                                 
  154,299      (662,300)     133,568      (933,874)     (45,527)     (1,424,724)
  2,300,246      2,962,546      2,625,563      3,559,437      2,311,275      3,735,999 
 $  2,454,545     $  2,300,246     $  2,759,131     $  2,625,563     $  2,265,748     $  2,311,275 
                                 
                                 

 

FS-42 
 

 


AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

      AIM
               
      Diversified      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  8,626       
  Mortality and expense risk charge     (4,653)      
Net investment income(loss)     3,973       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     40,973       
  Net realized gain(loss) on sale of fund shares     (736)      
Net realized gain(loss)     40,237       
               
Change in unrealized appreciation/depreciation     (7,070)      
               
Net increase(decrease) in net assets resulting            
  from operations    $  37,140       
               
               
      Diversified
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  3,973     $  2,930 
  Net realized gain(loss)     40,237      62,870 
  Net change in unrealized appreciation/depreciation      (7,070)     (79,009)
Net increase(decrease) in net assets resulting            
  from operations     37,140      (13,209)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     11,867      4,593 
  Subaccounts transfers (including fixed account), net     39,404      9,600 
  Transfers for policyowner benefits and terminations     (16,439)     (39,084)
  Policyowner maintenance charges     (755)     (694)
Net increase(decrease) from policyowner transactions     34,077      (25,585)
               
Total increase(decrease) in net assets     71,217      (38,794)
Net assets at beginning of period     444,721      483,515 
Net assets at end of period    $  515,938     $  444,721 
               
  The accompanying notes are an integral part of these financial statements.      

 

FS-43 
 

 

 

 

 

 

 

AIM   Summit
                         S&P       
Value         Real Estate         MidCap      
                                 
2023         2023         2023      
                                 
                                 
 $  786           $  18,052           $  631,151       
  (1,768)           (14,471)           (540,750)      
  (982)           3,581            90,401       
                                 
                                 
  43,787                                    -           2,129,676       
  (1,674)           (4,013)           1,793,383       
  42,113            (4,013)           3,923,059       
                                 
  (11,683)           112,247            3,401,477       
                                 
                                 
 $  29,448           $  111,815           $  7,414,937       
                                 
                                 
Value   Real Estate   S&P MidCap
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (982)    $  (962)    $  3,581     $  10,468     $  90,401     $  (66,553)
  42,113      36,611      (4,013)     (2,043)     3,923,059      8,657,106 
  (11,683)     (42,089)     112,247      (169,484)     3,401,477      (18,364,652)
                                 
  29,448      (6,440)     111,815      (161,059)     7,414,937      (9,774,099)
                                 
                                 
  46,935      3,259      957,854      6,853      174,742      314,113 
  (1,275)     17,359      (35,650)     99,015      (308,952)     (2,646,841)
  (39,563)     (11,567)     (2,770)     (721)     (5,909,290)     (5,349,450)
  (147)     (175)     (1,538)     (581)     (274,103)     (304,012)
  5,950      8,876      917,896      104,566      (6,317,603)     (7,986,190)
                                 
  35,398      2,436      1,029,711      (56,493)     1,097,334      (17,760,289)
  194,313      191,877      536,098      592,591      52,600,077      70,360,366 
 $  229,711     $  194,313     $  1,565,809     $  536,098     $  53,697,411     $  52,600,077 
                                 
                                 


 

FS-44 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

      Summit
       Russell       
      Small Cap      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  255,396       
  Mortality and expense risk charge     (303,508)      
Net investment income(loss)     (48,112)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions     16,272       
  Net realized gain(loss) on sale of fund shares     123,235       
Net realized gain(loss)     139,507       
               
Change in unrealized appreciation/depreciation     4,281,579       
               
Net increase(decrease) in net assets resulting            
  from operations    $  4,372,974       
               
               
      Russell Small Cap
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (48,112)    $  (76,763)
  Net realized gain(loss)     139,507      3,859,556 
  Net change in unrealized appreciation/depreciation      4,281,579      (12,383,266)
Net increase(decrease) in net assets resulting            
  from operations     4,372,974      (8,600,473)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     165,354      219,044 
  Subaccounts transfers (including fixed account), net     622,872      (106,148)
  Transfers for policyowner benefits and terminations     (2,989,491)     (3,241,791)
  Policyowner maintenance charges     (152,728)     (170,020)
Net increase(decrease) from policyowner transactions     (2,353,993)     (3,298,915)
               
Total increase(decrease) in net assets     2,018,981      (11,899,388)
Net assets at beginning of period     29,232,893      41,132,281 
Net assets at end of period    $  31,251,874     $  29,232,893 
               
The accompanying notes are an integral part of these financial statements.        


 

 

 

 

 

FS-45 
 

 

 

 

 

 

 

Summit
Nasdaq-100         EAFE                  
Index         Intl.         S&P 500      
                                 
2023         2023         2023      
                                 
                                 
 $  141,903           $  1,135,613           $  1,801,313       
  (436,598)           (373,095)           (1,434,860)      
  (294,695)           762,518            366,453       
                                 
                                 
                          -                                   -           6,651,175       
  6,225,468            1,192,405            6,328,510       
  6,225,468            1,192,405            12,979,685       
                                 
  12,767,974            4,181,747            16,584,998       
                                 
                                 
 $  18,698,747           $  6,136,670           $  29,931,136       
                                 
                                 
Nasdaq-100 Index   EAFE Intl.   S&P 500
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (294,695)    $  (362,916)    $  762,518     $  1,120,571     $  366,453     $  226,464 
  6,225,468      4,633,247      1,192,405      668,255      12,979,685      17,137,775 
  12,767,974      (23,535,591)     4,181,747      (9,623,822)     16,584,998      (50,867,173)
                                 
  18,698,747      (19,265,260)     6,136,670      (7,834,996)     29,931,136      (33,502,934)
                                 
                                 
  175,199      250,502      141,316      210,980      837,184      676,478 
  (4,663,597)     2,405,109      (2,013,888)     108,243      (6,885,725)     (4,175,957)
  (4,945,457)     (3,885,618)     (4,548,179)     (3,848,939)     (14,482,563)     (12,644,349)
  (250,486)     (262,679)     (347,558)     (382,941)     (696,722)     (764,021)
  (9,684,341)     (1,492,686)     (6,768,309)     (3,912,657)     (21,227,826)     (16,907,849)
                                 
  9,014,406      (20,757,946)     (631,639)     (11,747,653)     8,703,310      (50,410,783)
  38,335,243      59,093,189      40,114,969      51,862,622      131,127,744      181,538,527 
 $  47,349,649     $  38,335,243     $  39,483,330     $  40,114,969     $  139,831,054     $  131,127,744 
                                 
                                 


 

FS-46 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

      Summit
               
      Barclays      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  1,836,070       
  Mortality and expense risk charge     (647,267)      
Net investment income(loss)     1,188,803       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (996,013)      
Net realized gain(loss)     (996,013)      
               
Change in unrealized appreciation/depreciation     2,708,724       
               
Net increase(decrease) in net assets resulting            
  from operations    $  2,901,514       
               
               
      Barclays
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  1,188,803     $  1,269,058 
  Net realized gain(loss)     (996,013)     (1,173,003)
  Net change in unrealized appreciation/depreciation      2,708,724      (11,807,500)
Net increase(decrease) in net assets resulting            
  from operations     2,901,514      (11,711,445)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     182,925      347,027 
  Subaccounts transfers (including fixed account), net     4,259,407      (3,740,791)
  Transfers for policyowner benefits and terminations     (7,710,973)     (7,215,773)
  Policyowner maintenance charges     (620,289)     (696,393)
Net increase(decrease) from policyowner transactions     (3,888,930)     (11,305,930)
               
Total increase(decrease) in net assets     (987,416)     (23,017,375)
Net assets at beginning of period     68,622,051      91,639,426 
Net assets at end of period    $  67,634,635     $  68,622,051 
               
The accompanying notes are an integral part of these financial statements.        

 

FS-47 
 

 

 

 

 

 

 

Summit
                                 
Growth         Mod. Growth         Moderate      
                                 
2023         2023         2023      
                                 
                                 
 $  1,257,755           $  748,790           $  920,794       
  (952,760)           (544,867)           (620,028)      
  304,995            203,923            300,766       
                                 
                                 
  7,750,805            3,362,103            3,446,985       
  3,306,670            1,056,076            681,219       
  11,057,475            4,418,179            4,128,204       
                                 
  2,145,644            2,178,651            2,254,566       
                                 
                                 
 $  13,508,114           $  6,800,753           $  6,683,536       
                                 
                                 
Growth   Mod. Growth   Moderate
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  304,995     $  (3,021)    $  203,923     $  27,706     $  300,766     $  79,901 
  11,057,475      4,397,353      4,418,179      3,120,029      4,128,204      3,652,710 
  2,145,644      (25,170,871)     2,178,651      (14,461,242)     2,254,566      (16,762,646)
                                 
  13,508,114      (20,776,539)     6,800,753      (11,313,507)     6,683,536      (13,030,035)
                                 
                                 
  217,804      361,784      121,134      375,559      124,083      269,555 
  (159,245)     (133,267)     (52,976)     (1,550,878)     927,562      (2,465,404)
  (17,655,349)     (8,217,249)     (7,395,895)     (4,318,895)     (9,553,819)     (8,041,580)
  (1,540,395)     (1,698,420)     (809,707)     (861,533)     (813,740)     (897,862)
  (19,137,185)     (9,687,152)     (8,137,444)     (6,355,747)     (9,315,914)     (11,135,291)
                                 
  (5,629,071)     (30,463,691)     (1,336,691)     (17,669,254)     (2,632,378)     (24,165,326)
  103,943,550      134,407,241      57,691,981      75,361,235      66,170,021      90,335,347 
 $  98,314,479     $  103,943,550     $  56,355,290     $  57,691,981     $  63,537,643     $  66,170,021 
                                 
                                 

 

FS-48 
 

 


AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Third Avenue 
               
      Value      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  184,233       
  Mortality and expense risk charge     (82,657)      
Net investment income(loss)     101,576       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     512,563       
  Net realized gain(loss) on sale of fund shares     376,869       
Net realized gain(loss)     889,432       
               
Change in unrealized appreciation/depreciation     392,011       
               
Net increase(decrease) in net assets resulting            
  from operations    $  1,383,019       
               
               
      Value
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  101,576     $  31,048 
  Net realized gain(loss)     889,432      282,366 
  Net change in unrealized appreciation/depreciation      392,011      761,788 
Net increase(decrease) in net assets resulting            
  from operations     1,383,019      1,075,202 
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     77,078      69,749 
  Subaccounts transfers (including fixed account), net     (682,123)     (321,348)
  Transfers for policyowner benefits and terminations     (678,722)     (708,824)
  Policyowner maintenance charges     (14,422)     (14,722)
Net increase(decrease) from policyowner transactions     (1,298,189)     (975,145)
               
Total increase(decrease) in net assets     84,830      100,057 
Net assets at beginning of period     7,809,629      7,709,572 
Net assets at end of period    $  7,894,459     $  7,809,629 
               
The accompanying notes are an integral part of these financial statements.        


 

 

 

 

 

FS-49 
 

 

 

 

 

 

 

 Dreyfus     Scudder 
                        Small      
MidCap         Small Cap         Mid Value      
                                 
2023         2023         2023      
                                 
                                 
 $  13,951           $  8,659           $  19,047       
  (25,593)           (8,178)           (16,705)      
  (11,642)           481            2,342       
                                 
                                 
  81,947            45,203            63,961       
  (26,320)           (3,546)           (13,609)      
  55,627            41,657            50,352       
                                 
  347,532            69,283            163,011       
                                 
                                 
 $  391,517           $  111,421           $  215,705       
                                 
                                 
MidCap   Small Cap   Small Mid Value
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (11,642)    $  (15,269)    $  481     $  (389)    $  2,342     $  (2,858)
  55,627      708,451      41,657      115,926      50,352      40,534 
  347,532      (1,165,761)     69,283      (300,569)     163,011      (391,948)
                                 
  391,517      (472,579)     111,421      (185,032)     215,705      (354,272)
                                 
                                 
  26,023      28,119      16,155      20,466      21,088      19,355 
  (42,464)     (92,185)     18,562      (73,172)     49,814      (78,330)
  (229,279)     (219,556)     (26,435)     (66,989)     (174,017)     (191,443)
  (5,029)     (5,516)     (1,034)     (1,069)     (3,365)     (3,560)
  (250,749)     (289,138)     7,248      (120,764)     (106,480)     (253,978)
                                 
  140,768      (761,717)     118,669      (305,796)     109,225      (608,250)
  2,492,121      3,253,838      787,409      1,093,205      1,644,939      2,253,189 
 $  2,632,889     $  2,492,121     $  906,078     $  787,409     $  1,754,164     $  1,644,939 
                                 
                                 

 

FS-50 
 

 


AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Scudder 
               
      Thematic      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  3,408       
  Mortality and expense risk charge     (3,927)      
Net investment income(loss)     (519)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     10,007       
Net realized gain(loss)     10,007       
               
Change in unrealized appreciation/depreciation     42,451       
               
Net increase(decrease) in net assets resulting            
  from operations    $  51,939       
               
               
      Thematic
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (519)    $  416 
  Net realized gain(loss)     10,007      4,551 
  Net change in unrealized appreciation/depreciation      42,451      (203,925)
Net increase(decrease) in net assets resulting            
  from operations     51,939      (198,958)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     3,053      3,642 
  Subaccounts transfers (including fixed account), net     (90,022)     32,456 
  Transfers for policyowner benefits and terminations     (79,151)     (76,559)
  Policyowner maintenance charges     (638)     (879)
Net increase(decrease) from policyowner transactions     (166,758)     (41,340)
               
Total increase(decrease) in net assets     (114,819)     (240,298)
Net assets at beginning of period     416,431      656,729 
Net assets at end of period    $  301,612     $  416,431 
               
The accompanying notes are an integral part of these financial statements.        


 

 

 

 

 

FS-51 
 

 

 

 

 

 

 

Scudder    Neuberger Berman 
                                 
Alternative         Regency         Intrinsic      
                                 
2023         2023         2023      
                                 
                                 
 $  2,175           $  7,945           $  756       
  (341)           (8,300)           (1,606)      
  1,834            (355)           (850)      
                                 
                                 
  308            40,096            6,489       
  (103)           (21,632)           (3,093)      
  205            18,464            3,396       
                                 
  (334)           53,674            15,102       
                                 
                                 
 $  1,705           $  71,783           $  17,648       
                                 
                                 
Alternative   Regency   Intrinsic
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  1,834     $  2,759     $  (355)    $  (4,121)    $  (850)    $  (2,068)
  205      110      18,464      162,610      3,396      24,605 
  (334)     (6,968)     53,674      (266,245)     15,102      (52,274)
                                 
  1,705      (4,099)     71,783      (107,756)     17,648      (29,737)
                                 
                                 
  1,370      955      18,395      39,438      15,393      11,727 
  502      (993)     26,615      (78,327)     7,512      (76,910)
  (15,275)                             -     (124,152)     (100,495)     (8,913)     (6,939)
  (37)     (38)     (1,537)     (1,717)     (301)     (380)
  (13,440)     (76)     (80,679)     (141,101)     13,691      (72,502)
                                 
  (11,735)     (4,175)     (8,896)     (248,857)     31,339      (102,239)
  43,469      47,644      843,065      1,091,922      166,693      268,932 
 $  31,734     $  43,469     $  834,169     $  843,065     $  198,032     $  166,693 
                                 
                                 


 

FS-52 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Neuberger Berman 
               
      Growth      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $                          -      
  Mortality and expense risk charge     (5,044)      
Net investment income(loss)     (5,044)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (22,423)      
Net realized gain(loss)     (22,423)      
               
Change in unrealized appreciation/depreciation     104,221       
               
Net increase(decrease) in net assets resulting            
  from operations    $  76,754       
               
               
      Growth
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (5,044)    $  (5,390)
  Net realized gain(loss)     (22,423)     111,263 
  Net change in unrealized appreciation/depreciation      104,221      (310,748)
Net increase(decrease) in net assets resulting            
  from operations     76,754      (204,875)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     17,348      59,652 
  Subaccounts transfers (including fixed account), net     (29,917)     (32,564)
  Transfers for policyowner benefits and terminations     (74,104)     (16,101)
  Policyowner maintenance charges     (659)     (722)
Net increase(decrease) from policyowner transactions     (87,332)     10,265 
               
Total increase(decrease) in net assets     (10,578)     (194,610)
Net assets at beginning of period     485,054      679,664 
Net assets at end of period    $  474,476     $  485,054 
               
The accompanying notes are an integral part of these financial statements.        

 

FS-53 
 

 

 

 

 

 

 

 T. Rowe     Pimco 
                                 
Blue Chip         Total Return         Low Duration      
                                 
2023         2023         2023      
                                 
                                 
 $                          -          $  269,559           $  223,431       
  (447,607)           (73,449)           (60,045)      
  (447,607)           196,110            163,386       
                                 
                                 
                          -                                   -                                   -      
  4,281,102            (248,421)           (104,681)      
  4,281,102            (248,421)           (104,681)      
                                 
  13,966,058            434,153            176,731       
                                 
                                 
 $  17,799,553           $  381,842           $  235,436       
                                 
                                 
Blue Chip   Total Return   Low Duration
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (447,607)    $  (463,002)    $  196,110     $  141,153     $  163,386     $  48,614 
  4,281,102      3,733,372      (248,421)     (371,566)     (104,681)     (147,685)
  13,966,058      (28,273,872)     434,153      (1,316,350)     176,731      (452,519)
                                 
  17,799,553      (25,003,502)     381,842      (1,546,763)     235,436      (551,590)
                                 
                                 
  1,031,625      585,404      41,959      119,836      4,792      12,747 
  (6,182,777)     6,973,033      657,163      (908,593)     71,601      (806,100)
  (5,655,176)     (4,513,559)     (787,073)     (814,478)     (900,933)     (831,866)
  (268,826)     (283,927)     (12,359)     (13,766)     (55,746)     (64,615)
  (11,075,154)     2,760,951      (100,310)     (1,617,001)     (880,286)     (1,689,834)
                                 
  6,724,399      (22,242,551)     281,532      (3,163,764)     (644,850)     (2,241,424)
  40,296,829      62,539,380      7,676,304      10,840,068      6,517,913      8,759,337 
 $  47,021,228     $  40,296,829     $  7,957,836     $  7,676,304     $  5,873,063     $  6,517,913 
                                 
                                 


 

FS-54 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Pimco 
               
      Short Term      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  58,419       
  Mortality and expense risk charge     (13,364)      
Net investment income(loss)     45,055       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (1,102)      
Net realized gain(loss)     (1,102)      
               
Change in unrealized appreciation/depreciation     18,943       
               
Net increase(decrease) in net assets resulting            
  from operations    $  62,896       
               
               
      Short Term
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  45,055     $  12,048 
  Net realized gain(loss)     (1,102)     (5,261)
  Net change in unrealized appreciation/depreciation      18,943      (15,206)
Net increase(decrease) in net assets resulting            
  from operations     62,896      (8,419)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     2,620      67,432 
  Subaccounts transfers (including fixed account), net     (58,378)     1,522,741 
  Transfers for policyowner benefits and terminations     (256,069)     (621,548)
  Policyowner maintenance charges     (1,667)     (1,874)
Net increase(decrease) from policyowner transactions     (313,494)     966,751 
               
Total increase(decrease) in net assets     (250,598)     958,332 
Net assets at beginning of period     1,525,648      567,316 
Net assets at end of period    $  1,275,050     $  1,525,648 
               
The accompanying notes are an integral part of these financial statements.        

 

FS-55 
 

 

 

 

 

 

 

 Pimco 
            Low Duration                  
Emerging         Adv.         Real Return      
                                 
2023         2023         2023      
                                 
                                 
 $  5,044           $  4,426           $  110,856       
  (899)           (1,254)           (37,129)      
  4,145            3,172            73,727       
                                 
                                 
                          -                                   -                                   -      
  (3,897)           (621)           (39,423)      
  (3,897)           (621)           (39,423)      
                                 
  8,290            2,257            46,185       
                                 
                                 
 $  8,538           $  4,808           $  80,489       
                                 
                                 
Emerging   Low Duration Adv.   Real Return
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  4,145     $  4,066     $  3,172     $  288     $  73,727     $  197,644 
  (3,897)     (4,856)     (621)     (17,795)     (39,423)     (111,027)
  8,290      (22,540)     2,257      (8,094)     46,185      (541,480)
                                 
  8,538      (23,330)     4,808      (25,601)     80,489      (454,863)
                                 
                                 
  458      1,330      19,851      948      917,423      151,501 
  (12,505)     (11,756)     10,936      (142,187)     510,844      (149,574)
  (3,020)     (6,370)     (6,644)     (240,154)     (114,022)     (276,468)
  (85)     (158)     (174)     (372)     (4,060)     (3,969)
  (15,152)     (16,954)     23,969      (381,765)     1,310,185      (278,510)
                                 
  (6,614)     (40,284)     28,777      (407,366)     1,390,674      (733,373)
  97,790      138,074      109,887      517,253      2,727,575      3,460,948 
 $  91,176     $  97,790     $  138,664     $  109,887     $  4,118,249     $  2,727,575 
                                 
                                 


 

 

FS-56 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Pimco 
               
      Commodity      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  20,819       
  Mortality and expense risk charge     (1,125)      
Net investment income(loss)     19,694       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (19,820)      
Net realized gain(loss)     (19,820)      
               
Change in unrealized appreciation/depreciation     (12,729)      
               
Net increase(decrease) in net assets resulting            
  from operations    $  (12,855)      
               
               
      Commodity
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  19,694     $  32,087 
  Net realized gain(loss)     (19,820)     4,217 
  Net change in unrealized appreciation/depreciation      (12,729)     (25,198)
Net increase(decrease) in net assets resulting            
  from operations     (12,855)     11,106 
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     11,406                              -
  Subaccounts transfers (including fixed account), net     (32,046)     (5,730)
  Transfers for policyowner benefits and terminations     (27,107)     (7,204)
  Policyowner maintenance charges     (126)     (209)
Net increase(decrease) from policyowner transactions     (47,873)     (13,143)
               
Total increase(decrease) in net assets     (60,728)     (2,037)
Net assets at beginning of period     150,742      152,779 
Net assets at end of period    $  90,014     $  150,742 
               
The accompanying notes are an integral part of these financial statements.        

 

FS-57 
 

 

 

 

 

 

 

 Ibbotson 
                                 
Balanced         Growth         Income      
                                 
2023         2023         2023      
                                 
                                 
 $  11,886           $  10,450           $  4,127       
  (5,864)           (5,039)           (2,585)      
  6,022            5,411            1,542       
                                 
                                 
  13,835            13,529            1,920       
  (4,548)           207            (19,115)      
  9,287            13,736            (17,195)      
                                 
  50,198            56,922            35,850       
                                 
                                 
 $  65,507           $  76,069           $  20,197       
                                 
                                 
Balanced   Growth   Income
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  6,022     $  3,728     $  5,411     $  3,335     $  1,542     $  2,496 
  9,287      22,761      13,736      20,822      (17,195)     8,356 
  50,198      (118,257)     56,922      (108,786)     35,850      (60,965)
                                 
  65,507      (91,768)     76,069      (84,629)     20,197      (50,113)
                                 
                                 
                          -     61      60      121                              -                             -
  3,760      51,007      53,659      (534)     (88,392)     6,993 
  (23,459)     (112,824)     (19,341)     (11,888)     (51,732)     (51,308)
  (949)     (1,033)     (1,047)     (1,047)     (599)     (731)
  (20,648)     (62,789)     33,331      (13,348)     (140,723)     (45,046)
                                 
  44,859      (154,557)     109,400      (97,977)     (120,526)     (95,159)
  543,209      697,766      501,087      599,064      310,480      405,639 
 $  588,068     $  543,209     $  610,487     $  501,087     $  189,954     $  310,480 
                                 
                                 

 

FS-58 
 

 


AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Franklin Templeton 
               
      Global Bond      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $                          -      
  Mortality and expense risk charge     (259,650)      
Net investment income(loss)     (259,650)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (846,225)      
Net realized gain(loss)     (846,225)      
               
Change in unrealized appreciation/depreciation     1,619,969       
               
Net increase(decrease) in net assets resulting            
  from operations    $  514,094       
               
               
      Global Bond
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (259,650)    $  (292,545)
  Net realized gain(loss)     (846,225)     (2,044,951)
  Net change in unrealized appreciation/depreciation      1,619,969      374,804 
Net increase(decrease) in net assets resulting            
  from operations     514,094      (1,962,692)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     327,898      179,237 
  Subaccounts transfers (including fixed account), net     1,698,995      (2,845,724)
  Transfers for policyowner benefits and terminations     (2,869,960)     (2,580,144)
  Policyowner maintenance charges     (241,466)     (270,885)
Net increase(decrease) from policyowner transactions     (1,084,533)     (5,517,516)
               
Total increase(decrease) in net assets     (570,439)     (7,480,208)
Net assets at beginning of period     28,350,019      35,830,227 
Net assets at end of period    $  27,779,580     $  28,350,019 
               
The accompanying notes are an integral part of these financial statements.        

 

FS-59 
 

 

 

 

 

 

 

 Franklin Templeton 
             Global                   
Income         Discovery         Small Cap      
                                 
2023         2023         2023      
                                 
                                 
 $  134,178           $  2,523           $  2,087       
  (26,558)           (971)           (3,847)      
  107,620            1,552            (1,760)      
                                 
                                 
  162,667            5,491            22,629       
  (13,831)           30            (12,203)      
  148,836            5,521            10,426       
                                 
  (67,308)           9,926            32,877       
                                 
                                 
 $  189,148           $  16,999           $  41,543       
                                 
                                 
Income   Global Discovery   Small Cap
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  107,620     $  61,037     $  1,552     $  280     $  (1,760)    $  85 
  148,836      10,921      5,521      6,643      10,426      68,314 
  (67,308)     (192,670)     9,926      (11,758)     32,877      (131,142)
                                 
  189,148      (120,712)     16,999      (4,835)     41,543      (62,743)
                                 
                                 
  1,036,756      187,732      360      3,565      6,327      39,540 
  (103,387)     184,790      14,138      2,624      (33,594)     (115,421)
  (149,416)     (116,985)                             -                             -     (11,908)     (16,204)
  (3,199)     (2,148)     (121)     (95)     (411)     (454)
  780,754      253,389      14,377      6,094      (39,586)     (92,539)
                                 
  969,902      132,677      31,376      1,259      1,957      (155,282)
  1,717,941      1,585,264      80,597      79,338      387,017      542,299 
 $  2,687,843     $  1,717,941     $  111,973     $  80,597     $  388,974     $  387,017 
                                 
                                 

 

FS-60 
 

 


AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Franklin Templeton 
               
      Foreign      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  22,248       
  Mortality and expense risk charge     (6,896)      
Net investment income(loss)     15,352       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     1,056       
Net realized gain(loss)     1,056       
               
Change in unrealized appreciation/depreciation     99,751       
               
Net increase(decrease) in net assets resulting            
  from operations    $  116,159       
               
               
      Foreign
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  15,352     $  5,477 
  Net realized gain(loss)     1,056      (12,930)
  Net change in unrealized appreciation/depreciation      99,751      (16,119)
Net increase(decrease) in net assets resulting            
  from operations     116,159      (23,572)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     513,171      23,549 
  Subaccounts transfers (including fixed account), net     3,911      (126,657)
  Transfers for policyowner benefits and terminations     (6,695)     (3,681)
  Policyowner maintenance charges     (742)     (185)
Net increase(decrease) from policyowner transactions     509,645      (106,974)
               
Total increase(decrease) in net assets     625,804      (130,546)
Net assets at beginning of period     129,104      259,650 
Net assets at end of period    $  754,908     $  129,104 
               
The accompanying notes are an integral part of these financial statements.        

 

FS-61 
 

 

 

 

 

 

 

 AllianceBernstein     American Funds 
Growth and                              
Income         Managed         Blue Chip      
                                 
2023         2023         2023      
                                 
                                 
 $  3,845           $  501,869           $  47,591       
  (3,050)           (268,746)           (25,406)      
  795            233,123            22,185       
                                 
                                 
  24,289            3,225,615            23,643       
  (1,155)           (843,050)           (16,824)      
  23,134            2,382,565            6,819       
                                 
  8,168            (269,406)           356,171       
                                 
                                 
 $  32,097           $  2,346,282           $  385,175       
                                 
                                 
Growth and Income   Managed   Blue Chip
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  795     $  454     $  233,123     $  419,964     $  22,185     $  21,073 
  23,134      50,076      2,382,565      1,133,229      6,819      651,427 
  8,168      (66,185)     (269,406)     (7,414,119)     356,171      (1,062,163)
                                 
  32,097      (15,655)     2,346,282      (5,860,926)     385,175      (389,663)
                                 
                                 
  34,384      19,346      312,690      508,352      94,098      220,882 
  (744)     12,272      (207,991)     787,257      (13,958)     (474,078)
  (9,383)     (14,783)     (6,890,541)     (2,810,418)     (282,116)     (560,081)
  (391)     (390)     (431,520)     (497,430)     (2,536)     (4,052)
  23,866      16,445      (7,217,362)     (2,012,239)     (204,512)     (817,329)
                                 
  55,963      790      (4,871,080)     (7,873,165)     180,663      (1,206,992)
  289,041      288,251      31,334,701      39,207,866      2,505,930      3,712,922 
 $  345,004     $  289,041     $  26,463,621     $  31,334,701     $  2,686,593     $  2,505,930 
                                 
                                 


 

FS-62 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       American Funds 
               
      Global      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  10,760       
  Mortality and expense risk charge     (11,763)      
Net investment income(loss)     (1,003)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions     90,206       
  Net realized gain(loss) on sale of fund shares     (4,815)      
Net realized gain(loss)     85,391       
               
Change in unrealized appreciation/depreciation     145,221       
               
Net increase(decrease) in net assets resulting            
  from operations    $  229,609       
               
               
      Global
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (1,003)    $  (4,042)
  Net realized gain(loss)     85,391      97,039 
  Net change in unrealized appreciation/depreciation      145,221      (495,662)
Net increase(decrease) in net assets resulting            
  from operations     229,609      (402,665)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     12,365      183,477 
  Subaccounts transfers (including fixed account), net     (18,281)     6,747 
  Transfers for policyowner benefits and terminations     (21,393)     (156,933)
  Policyowner maintenance charges     (1,224)     (1,698)
Net increase(decrease) from policyowner transactions     (28,533)     31,593 
               
Total increase(decrease) in net assets     201,076      (371,072)
Net assets at beginning of period     1,084,216      1,455,288 
Net assets at end of period    $  1,285,292     $  1,084,216 
               
The accompanying notes are an integral part of these financial statements.        

 

FS-63 
 

 

 

 

 

 

 

 American Funds 
                                 
Growth         International         New World      
                                 
2023         2023         2023      
                                 
                                 
 $  12,103           $  7,182           $  9,770       
  (32,192)           (5,701)           (5,893)      
  (20,089)           1,481            3,877       
                                 
                                 
  183,230                                    -                                   -      
  4,702            (17,038)           (5,580)      
  187,932            (17,038)           (5,580)      
                                 
  843,434            95,026            82,726       
                                 
                                 
 $  1,011,277           $  79,469           $  81,023       
                                 
                                 
Growth   International   New World
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (20,089)    $  (19,748)    $  1,481     $  4,478     $  3,877     $  1,893 
  187,932      400,410      (17,038)     77,622      (5,580)     39,819 
  843,434      (1,528,530)     95,026      (240,781)     82,726      (210,556)
                                 
  1,011,277      (1,147,868)     79,469      (158,681)     81,023      (168,844)
                                 
                                 
  479,903      182,928      20,534      7,739      8,968      72,746 
  (23,878)     22,593      (73,724)     10,386      147,246      (47,493)
  (157,322)     (236,292)     (24,852)     (41,220)     (31,966)     (62,629)
  (3,137)     (3,605)     (629)     (826)     (666)     (696)
  295,566      (34,376)     (78,671)     (23,921)     123,582      (38,072)
                                 
  1,306,843      (1,182,244)     798      (182,602)     204,605      (206,916)
  2,460,476      3,642,720      564,143      746,745      517,424      724,340 
 $  3,767,319     $  2,460,476     $  564,941     $  564,143     $  722,029     $  517,424 
                                 
                                 


 

FS-64 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       American Funds 
               
      Growth-Income      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  26,243       
  Mortality and expense risk charge     (18,271)      
Net investment income(loss)     7,972       
               
Realized gain(loss) on investments:            
  Net realized gain distributions     96,918       
  Net realized gain(loss) on sale of fund shares     7,478       
Net realized gain(loss)     104,396       
               
Change in unrealized appreciation/depreciation     300,588       
               
Net increase(decrease) in net assets resulting            
  from operations    $  412,956       
               
               
      Growth-Income
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  7,972     $  3,430 
  Net realized gain(loss)     104,396      163,430 
  Net change in unrealized appreciation/depreciation      300,588      (518,668)
Net increase(decrease) in net assets resulting            
  from operations     412,956      (351,808)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     368,358      163,214 
  Subaccounts transfers (including fixed account), net     (37,490)     (44,468)
  Transfers for policyowner benefits and terminations     (76,782)     (299,755)
  Policyowner maintenance charges     (1,911)     (2,539)
Net increase(decrease) from policyowner transactions     252,175      (183,548)
               
Total increase(decrease) in net assets     665,131      (535,356)
Net assets at beginning of period     1,408,572      1,943,928 
Net assets at end of period    $  2,073,703     $  1,408,572 
               
The accompanying notes are an integral part of these financial statements.        

 

FS-65 
 

 

 

 

 

 

 American Funds     Columbia 
                                 
Asset         Strategic         Emerging      
                                 
2023         2023         2023      
                                 
                                 
 $  71,831           $  7,165           $                          -      
  (32,488)           (1,867)           (1,087)      
  39,343            5,298            (1,087)      
                                 
                                 
  126,999                                    -                                   -      
  (19,579)           (2,217)           (1,794)      
  107,420            (2,217)           (1,794)      
                                 
  251,799            12,349            11,460       
                                 
                                 
 $  398,562           $  15,430           $  8,579       
                                 
                                 
Asset   Strategic   Emerging
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  39,343     $  30,263     $  5,298     $  3,084     $  (1,087)    $  (1,298)
  107,420      336,053      (2,217)     6,453      (1,794)     21,100 
  251,799      (859,532)     12,349      (34,607)     11,460      (78,216)
                                 
  398,562      (493,216)     15,430      (25,070)     8,579      (58,414)
                                 
                                 
  225,118      420,224      313      329      4,518      19,240 
  (140,194)     (19,819)     44,530      (12)     4      (25,697)
  (250,102)     (103,188)     (13,105)     (18,226)     (2,001)     (3,174)
  (5,708)     (5,559)     (205)     (122)     (178)     (173)
  (170,886)     291,658      31,533      (18,031)     2,343      (9,804)
                                 
  227,676      (201,558)     46,963      (43,101)     10,922      (68,218)
  3,144,788      3,346,346      169,710      212,811      104,618      172,836 
 $  3,372,464     $  3,144,788     $  216,673     $  169,710     $  115,540     $  104,618 
                                 
                                 

 

 

 

FS-66 
 

 


AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Columbia 
               
      International      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  3,603       
  Mortality and expense risk charge     (2,150)      
Net investment income(loss)     1,453       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (197)      
Net realized gain(loss)     (197)      
               
Change in unrealized appreciation/depreciation     27,530       
               
Net increase(decrease) in net assets resulting            
  from operations    $  28,786       
               
               
      International
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  1,453     $  (1,213)
  Net realized gain(loss)     (197)     15,153 
  Net change in unrealized appreciation/depreciation      27,530      (41,783)
Net increase(decrease) in net assets resulting            
  from operations     28,786      (27,843)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     460      8,308 
  Subaccounts transfers (including fixed account), net                             -     162,607 
  Transfers for policyowner benefits and terminations     (125)     (135)
  Policyowner maintenance charges     (51)     (44)
Net increase(decrease) from policyowner transactions     284      170,736 
               
Total increase(decrease) in net assets     29,070      142,893 
Net assets at beginning of period     202,774      59,881 
Net assets at end of period    $  231,844     $  202,774 
               
The accompanying notes are an integral part of these financial statements.        

 

FS-67 
 

 

 

 

 

 

 

 Columbia 
                                 
Smaller-Cap         Mid Cap         High Yield      
                                 
2023         2023         2023      
                                 
                                 
 $                          -          $                          -          $  18,536       
  (2,388)           (7,363)           (3,383)      
  (2,388)           (7,363)           15,153       
                                 
                                 
                          -                                   -                                   -      
  4,450            12,800            (2,880)      
  4,450            12,800            (2,880)      
                                 
  21,058            66,546            22,984       
                                 
                                 
 $  23,120           $  71,983           $  35,257       
                                 
                                 
Smaller-Cap   Mid Cap   High Yield
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (2,388)    $  (2,301)    $  (7,363)    $  (6,456)    $  15,153     $  13,122 
  4,450      4,043      12,800      16,972      (2,880)     (5,492)
  21,058      (43,761)     66,546      (86,449)     22,984      (55,391)
                                 
  23,120      (42,019)     71,983      (75,933)     35,257      (47,761)
                                 
                                 
  55,144      7,030      120,732      148,839      1,078      10,764 
  (27,950)     (11,250)     34,569      (31,712)     9,447      56,859 
  (2,285)     (5,182)     (51,645)     (19,632)     (6,780)     (53,062)
  (317)     (336)     (934)     (740)     (368)     (394)
  24,592      (9,738)     102,722      96,755      3,377      14,167 
                                 
  47,712      (51,757)     174,705      20,822      38,634      (33,594)
  212,848      264,605      670,989      650,167      324,688      358,282 
 $  260,560     $  212,848     $  845,694     $  670,989     $  363,322     $  324,688 
                                 
                                 

 

FS-68 
 

 


AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Columbia 
               
      Large Core      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $                          -      
  Mortality and expense risk charge     (7,001)      
Net investment income(loss)     (7,001)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     24,899       
Net realized gain(loss)     24,899       
               
Change in unrealized appreciation/depreciation     130,334       
               
Net increase(decrease) in net assets resulting            
  from operations    $  148,232       
               
               
      Large Core
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (7,001)    $  (7,206)
  Net realized gain(loss)     24,899      65,208 
  Net change in unrealized appreciation/depreciation      130,334      (222,974)
Net increase(decrease) in net assets resulting            
  from operations     148,232      (164,972)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     70,433      250 
  Subaccounts transfers (including fixed account), net     (8,104)     (98,047)
  Transfers for policyowner benefits and terminations     (59,376)     (34,303)
  Policyowner maintenance charges     (519)     (510)
Net increase(decrease) from policyowner transactions     2,434      (132,610)
               
Total increase(decrease) in net assets     150,666      (297,582)
Net assets at beginning of period     643,882      941,464 
Net assets at end of period    $  794,548     $  643,882 
               
The accompanying notes are an integral part of these financial statements.        

 

FS-69 
 

 

 

 

 

 

 

 Ivy 
                                 
Strategy         Balanced         Energy      
                                 
2023         2023         2023      
                                 
                                 
 $  141           $  17,542           $  15,354       
  (65)           (23,048)           (4,232)      
  76            (5,506)           11,122       
                                 
                                 
                          -                                   -                                   -      
  (6)           (102,352)           12,201       
  (6)           (102,352)           12,201       
                                 
  717            435,936            (15,624)      
                                 
                                 
 $  787           $  328,078           $  7,699       
                                 
                                 
Strategy   Balanced   Energy
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  76     $  38     $  (5,506)    $  1,781     $  11,122     $  9,374 
  (6)     505      (102,352)     526,445      12,201      35,466 
  717      (1,679)     435,936      (808,572)     (15,624)     44,566 
                                 
  787      (1,136)     328,078      (280,346)     7,699      89,406 
                                 
                                 
                          -                             -     1,025,499      5,872      19,916      223,797 
                          -                             -     (122,694)     41,204      57,025      (67,146)
                          -                             -     (303,275)     (88,564)     (30,844)     (10,407)
                          -                             -     (3,505)     (2,547)     (386)     (354)
                          -                             -     596,025      (44,035)     45,711      145,890 
                                 
  787      (1,136)     924,103      (324,381)     53,410      235,296 
  6,152      7,288      1,347,803      1,672,184      426,425      191,129 
 $  6,939     $  6,152     $  2,271,906     $  1,347,803     $  479,835     $  426,425 
                                 
                                 

 

 

FS-70 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Ivy 
      Small Cap      
      Value      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  664       
  Mortality and expense risk charge     (3,223)      
Net investment income(loss)     (2,559)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions     32,667       
  Net realized gain(loss) on sale of fund shares     (4,117)      
Net realized gain(loss)     28,550       
               
Change in unrealized appreciation/depreciation     18,592       
               
Net increase(decrease) in net assets resulting            
  from operations    $  44,583       
               
               
      Small Cap Value
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (2,559)    $  (3,307)
  Net realized gain(loss)     28,550      66,246 
  Net change in unrealized appreciation/depreciation      18,592      (123,743)
Net increase(decrease) in net assets resulting            
  from operations     44,583      (60,804)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     3,632      6,143 
  Subaccounts transfers (including fixed account), net     (3,122)     (15,853)
  Transfers for policyowner benefits and terminations     (9,753)     (13,915)
  Policyowner maintenance charges     (258)     (263)
Net increase(decrease) from policyowner transactions     (9,501)     (23,888)
               
Total increase(decrease) in net assets     35,082      (84,692)
Net assets at beginning of period     315,430      400,122 
Net assets at end of period    $  350,512     $  315,430 
               
The accompanying notes are an integral part of these financial statements.        

 

FS-71 
 

 

 

 

 

 

 

 Ivy 
             Mid Cap                   
Science         Growth         International      
                                 
2023         2023         2023      
                                 
                                 
 $                          -          $                          -          $  2,351       
  (15,612)           (6,161)           (1,518)      
  (15,612)           (6,161)           833       
                                 
                                 
  84,380            69,029                                    -      
  (60,494)           (10,806)           (671)      
  23,886            58,223            (671)      
                                 
  490,215            56,656            20,785       
                                 
                                 
 $  498,489           $  108,718           $  20,947       
                                 
                                 
Science   Mid Cap Growth   International
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  (15,612)    $  (14,753)    $  (6,161)    $  (6,234)    $  833     $  1,970 
  23,886      117,800      58,223      131,365      (671)     10,767 
  490,215      (724,049)     56,656      (392,729)     20,785      (39,600)
                                 
  498,489      (621,002)     108,718      (267,598)     20,947      (26,863)
                                 
                                 
  147,875      185,968      71,031      34,875      14,782      897 
  14,355      (102,914)     (32,308)     16,940      958      2,125 
  (108,158)     (26,257)     (8,994)     (11,785)     (14,898)     (1,115)
  (2,081)     (1,855)     (669)     (725)     (240)     (238)
  51,991      54,942      29,060      39,305      602      1,669 
                                 
  550,480      (566,060)     137,778      (228,293)     21,549      (25,194)
  1,303,660      1,869,720      578,913      807,206      150,038      175,232 
 $  1,854,140     $  1,303,660     $  716,691     $  578,913     $  171,587     $  150,038 
                                 
                                 


 

FS-72 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Ivy 
               
      Global      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  63       
  Mortality and expense risk charge     (867)      
Net investment income(loss)     (804)      
               
Realized gain(loss) on investments:            
  Net realized gain distributions     15,440       
  Net realized gain(loss) on sale of fund shares     (2,445)      
Net realized gain(loss)     12,995       
               
Change in unrealized appreciation/depreciation     2,738       
               
Net increase(decrease) in net assets resulting            
  from operations    $  14,929       
               
               
      Global
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  (804)    $  (159)
  Net realized gain(loss)     12,995      9,501 
  Net change in unrealized appreciation/depreciation      2,738      (24,645)
Net increase(decrease) in net assets resulting            
  from operations     14,929      (15,303)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     796      602 
  Subaccounts transfers (including fixed account), net     16,179      5,774 
  Transfers for policyowner benefits and terminations     (1,400)     (1,563)
  Policyowner maintenance charges     (138)     (83)
Net increase(decrease) from policyowner transactions     15,437      4,730 
               
Total increase(decrease) in net assets     30,366      (10,573)
Net assets at beginning of period     71,615      82,188 
Net assets at end of period    $  101,981     $  71,615 
               
The accompanying notes are an integral part of these financial statements.        

 

FS-73 
 

 

 

 

 

 

 

 Ivy     Janus     Putnam 
                                 
High Income         Flexible         Health      
                                 
2023         2023         2023      
                                 
                                 
 $  12,594           $  11,481           $  873       
  (1,963)           (3,179)           (2,771)      
  10,631            8,302            (1,898)      
                                 
                                 
                          -                                   -           23,108       
  (4,273)           (13,995)           (3,216)      
  (4,273)           (13,995)           19,892       
                                 
  13,705            17,770            2,093       
                                 
                                 
 $  20,063           $  12,077           $  20,087       
                                 
                                 
High Income   Flexible   Health
                                 
2023   2022   2023   2022   2023   2022
                                 
 $  10,631     $  15,700     $  8,302     $  4,263     $  (1,898)    $  (1,369)
  (4,273)     (17,276)     (13,995)     (16,248)     19,892      18,217 
  13,705      (35,111)     17,770      (65,478)     2,093      (27,512)
                                 
  20,063      (36,687)     12,077      (77,463)     20,087      (10,664)
                                 
                                 
  1,005      6,590      8,617      7,771      33,785      109,428 
  5      (7,137)     (4,292)     (68,650)     (83,209)     (8,521)
  (24,036)     (68,963)     (45,901)     (125,109)     (16,144)     (8,022)
  (184)     (274)     (176)     (254)     (299)     (303)
  (23,210)     (69,784)     (41,752)     (186,242)     (65,867)     92,582 
                                 
  (3,147)     (106,471)     (29,675)     (263,705)     (45,780)     81,918 
  195,545      302,016      335,433      599,138      301,752      219,834 
 $  192,398     $  195,545     $  305,758     $  335,433     $  255,972     $  301,752 
                                 
                                 

 

FS-74 
 

 


AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

FOR THE PERIODS ENDED DECEMBER 31

 

 

 

       Putnam 
               
      Asset      
               
      2023      
STATEMENTS OF OPERATIONS            
Investment income:            
  Dividend distributions received    $  3,746       
  Mortality and expense risk charge     (2,479)      
Net investment income(loss)     1,267       
               
Realized gain(loss) on investments:            
  Net realized gain distributions                             -      
  Net realized gain(loss) on sale of fund shares     (756)      
Net realized gain(loss)     (756)      
               
Change in unrealized appreciation/depreciation     37,460       
               
Net increase(decrease) in net assets resulting            
  from operations    $  37,971       
               
               
      Asset
               
STATEMENTS OF CHANGES IN NET ASSETS   2023   2022
Increase(decrease) in net assets from operations:            
  Net investment income(loss)    $  1,267     $  928 
  Net realized gain(loss)     (756)     20,705 
  Net change in unrealized appreciation/depreciation      37,460      (60,614)
Net increase(decrease) in net assets resulting            
  from operations     37,971      (38,981)
               
Net increase(decrease) from policyowner transactions:            
  Payments received from policyowners     483      105,083 
  Subaccounts transfers (including fixed account), net     (8)     1 
  Transfers for policyowner benefits and terminations     (6,668)     (3,299)
  Policyowner maintenance charges     (242)     (205)
Net increase(decrease) from policyowner transactions     (6,435)     101,580 
               
Total increase(decrease) in net assets     31,536      62,599 
Net assets at beginning of period     236,441      173,842 
Net assets at end of period    $  267,977     $  236,441 
               
The accompanying notes are an integral part of these financial statements.        

 

FS-75 
 

 

 

 

 

 

 

 Van Eck 
                     
Gold         Hard Assets      
                     
2023         2023      
                     
                     
 $                          -          $  6,010       
  (2,073)           (2,247)      
  (2,073)           3,763       
                     
                     
                          -                                   -      
  (514)           1,844       
  (514)           1,844       
                     
  25,824            (16,531)      
                     
                     
 $  23,237           $  (10,924)      
                     
                     
Gold   Hard Assets
                     
2023   2022   2023   2022
                     
 $  (2,073)    $  (4,899)    $  3,763     $  2,218 
  (514)     (229,163)     1,844      32,851 
  25,824      (38,491)     (16,531)     (13,440)
                     
  23,237      (272,553)     (10,924)     21,629 
                     
                     
  18,254      2,066      9,088      79,007 
  62,584      73,612      2,796      (176,135)
  (59,019)     (110,859)     (12,915)     (9,154)
  (237)     (524)     (324)     (399)
  21,582      (35,705)     (1,355)     (106,681)
                     
  44,819      (308,258)     (12,279)     (85,052)
  190,284      498,542      235,345      320,397 
 $  235,103     $  190,284     $  223,066     $  235,345 
                     
                     

 

 

FS-76 
 

 

AMERITAS VARIABLE SEPARATE ACCOUNT VA-2

NOTES TO FINANCIAL STATEMENTS

FOR THE PERIODS ENDED DECEMBER 31, 2023 AND 2022

 

 

1. ORGANIZATION

 

Ameritas Variable Separate Account VA-2 (the "Account") began operations during 1987. 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 twenty-seven subaccounts available within the Account listed as follows:

 

               
Fidelity Management & Research Fidelity Management & Research
Company LLC Company LLC, continued
(Advisor)   Fidelity, continued
  Fidelity (Fund Series short cite)     *Asset Mgr. Gr. IC
    *Equity-Income IC (Subaccount short cite)     *Asset Mgr. Gr. SC
    *Equity-Income SC     *Asset Mgr. Gr. SC2
    *Equity-Income SC2     *Mid Cap SC2
    *Growth IC     *Money Market
    *Growth SC     *Money Market SC2
    *Growth SC2     *Index 500 SC2
    *High Income IC     *Strategic SC2
    *High Income SC  
    *High Income SC2 Fred Alger Management, LLC
    *Overseas IC   Alger
    *Overseas SC     *Balanced
    *Overseas SC2      
    *Asset Mgr. IC Massachusetts Financial Services
    *Asset Mgr. SC Company
    *Asset Mgr. SC2   MFS
    *Inv. Bond IC     *Utilities
    *Inv. Bond SC2     *New Discovery
    *Contrafund IC     *Total Return
    *Contrafund SC     *Growth SC
    *Contrafund SC2     *New Discovery SC
          *Utilities SC
          *Strategic

 

FS-77 
 

 

 

 

1. ORGANIZATION, continued

 

               
Massachusetts Financial Services Invesco Advisers, Inc.
Company, continued   AIM
  MFS, continued     *Intl. Growth
    *Research     *Global
    *Blended Core SC     *Global Value
    *Corporate SC     *Discovery Mid Cap
    *Government SC         (Commenced April 30, 2020)
    *Growth Allocation SC     *Diversified
    *Moderate SC     *Value
    *Conservative SC     *Real Estate
    *Blended Small Cap SC      
    *Global Real Estate IC Calvert Research and Management
        (Commenced February 3, 2021) (See Note 3)
    *Global Real Estate SC   Summit
        (Commenced August 27, 2020)     *S&P MidCap
            *Russell Small Cap
Morgan Stanley Investment     *Nasdaq-100 Index
Management Inc.     *EAFE Intl.
  Van Kampen     *S&P 500
    *Emerging Markets     *Barclays
    *Intl. Magnum     *Growth
    *U.S. Real Estate     *Mod. Growth
    *Global II     *Moderate
           
Calvert Research and Management Third Avenue Management LLC
  Calvert   Third Avenue
    *Balanced     *Value
    *Mid Cap  
    *Balanced F BNY Mellon Investment Adviser, Inc.
        Dreyfus
American Century Investment     *MidCap
Management, Inc.     *Small Cap
  American Century      
    *Income & Growth      
    *Mid Cap Value        
    *Inc. & Growth II        
               
               

 

 

 

 

 

 

 

FS-78 
 

 

 

 

1. ORGANIZATION, continued

 

               
DWS Investment Management Americas, Inc. Franklin Advisers, Inc.
  Scudder   Franklin Templeton
    *Small Mid Value     *Global Bond
    *Thematic     *Income
    *Alternative        
        Franklin Mutual Advisers, LLC
Neuberger Berman Investment Advisers LLC   Franklin Templeton
  Neuberger Berman     *Global Discovery
    *Regency     *Small Cap
    *Intrinsic        
    *Growth Templeton Investment Counsel, LLC
          Franklin Templeton
T. Rowe Price Associates, Inc.     *Foreign
  T. Rowe        
    *Blue Chip AllianceBernstein L.P.
          AllianceBernstein
Pacific Investment Management     *Growth and Income
Company LLC        
  Pimco Capital Research and Management Company (SM)
    *Total Return   American Funds
    *Low Duration     *Managed
    *Short Term     *Blue Chip
    *Emerging     *Global
    *Low Duration Adv.     *Growth
    *Real Return     *International
    *Commodity     *New World
            *Growth-Income
ALPS Advisors, Inc.     *Asset
  Ibbotson      
    *Balanced      
    *Growth        
    *Income        

 

FS-79 
 

 

 

 

1. ORGANIZATION, continued

 

               
Columbia Management Investment Janus Capital Management LLC
Advisers, LLC   Janus
  Columbia     *Flexible
    *Strategic      
    *Emerging Putnam Investment Management, LLC
    *International   Putnam
    *Smaller-Cap     *Health
    *Mid Cap     *Asset
    *High Yield      
    *Large Core Van Eck Associates Corporation
        Van Eck
Delaware Management Company     *Gold
  Ivy     *Hard Assets
    *Strategy      
    *Balanced        
    *Energy        
    *Small Cap Value        
    *Science        
    *Mid Cap Growth        
    *International        
    *Global        
    *High Income        
               

 

 

 

 

 

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

FS-80 
 

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.

 

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.

 

 

 

 

FS-81 
 

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 MidCap   .050
  Russell Small Cap   .050
  Nasdaq-100 Index   .050
  S&P 500   .050
  Barclays   .050
  Growth   .050
  Mod. Growth   .050
  Moderate   .050

 

 

 

FS-82 
 

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
Fidelity:            
  Equity-Income IC   $ 809,048   $ 1,866,134
  Equity-Income SC     510,559     594,601
  Equity-Income SC2     816,957     1,375,499
  Growth IC     1,251,870     2,880,376
  Growth SC     126,344     189,731
  Growth SC2     916,768     1,119,295
  High Income IC     512,913     598,278
  High Income SC     55,659     91,805
  High Income SC2     2,635,251     5,865,801
  Overseas IC     176,077     497,388
  Overseas SC     6,316     68,823
  Overseas SC2     256,423     1,337,538
  Asset Mgr. IC     215,443     842,057
  Asset Mgr. SC     41,625     55,215
  Asset Mgr. SC2     103,863     246,731
  Inv. Bond IC     375,051     823,485
  Inv. Bond SC2     3,296,769     5,977,788
  Contrafund IC     913,825     2,397,476
  Contrafund SC     166,238     585,823
  Contrafund SC2     2,259,743     4,763,308
  Asset Mgr. Gr. IC     27,416     221,422
  Asset Mgr. Gr. SC     2,854     2,316
  Asset Mgr. Gr. SC2     9,460     77,424
  Mid Cap SC2     375,627     555,632
  Money Market     9,776,312     11,173,718
  Money Market SC2     562,630     1,201,119
  Index 500 SC2     932,387     987,884
  Strategic SC2     26,253     42,342
                 
Alger:            
  Balanced     518,047     1,254,582
                 
MFS:            
  Utilities     3,232,679     2,936,674
  New Discovery     291,199     857,675
  Total Return      599,065     992,132
  Growth SC     189,672     80,215
  New Discovery SC     39,566     62,296
  Utilities SC     1,478,965     202,301
  Strategic     923,520     623,279
  Research     638,654     3,956,306
  Blended Core SC     129,191     24,756
  Corporate SC     685,083     54,165
  Government SC     4,224     10,139

 

 

FS-83 
 

4. PURCHASES AND SALES OF INVESTMENTS, continued

 

 

        Purchases   Sales
MFS, continued:            
  Growth Allocation SC   $ 100,928   $ 27,904
  Moderate SC     140,204     51,035
  Conservative SC     32,698     17,251
  Blended Small Cap SC     32,687     21,229
  Global Real Estate IC     1,894     24,384
  Global Real Estate SC     96,577     6,842
                 
Van Kampen:            
  Emerging Markets     993,357     2,665,727
  Intl. Magnum     51,858     282,930
  U.S. Real Estate     2,074,742     4,723,971
  Global II     1,527     2,931
                 
Calvert:            
  Balanced     381,360     761,086
  Mid Cap     3,306     99,389
  Balanced F     1,045,979     160,515
                 
American Century:            
  Income & Growth     1,857,712     4,795,444
  Mid Cap Value     1,633,230     1,138,657
  Inc. & Growth II     627,308     239,051
                 
AIM:              
  Intl. Growth     408,648     1,695,448
  Global     277,378     302,388
  Global Value     40,606     418,495
  Discovery Mid Cap     124,559     451,712
  Diversified     92,019     12,995
  Value     83,435     34,680
  Real Estate     982,887     61,409
                 
Summit:            
  S&P MidCap     3,523,115     7,620,641
  Russell Small Cap     1,079,899     3,465,732
  Nasdaq-100 Index     1,706,133     11,685,168
  EAFE Intl.     1,582,645     7,588,435
  S&P 500     8,930,055     23,140,253
  Barclays     3,695,526     6,395,653
  Growth     9,040,063     20,121,449
  Mod. Growth     4,106,697     8,678,116
  Moderate     4,610,699     10,178,863

 

 

FS-84 
 

4. PURCHASES AND SALES OF INVESTMENTS, continued

 

 

        Purchases   Sales
Third Avenue:            
  Value   $ 1,008,094   $ 1,692,143
                 
Dreyfus:            
  MidCap     202,639     383,084
  Small Cap     91,514     38,583
                 
Scudder:            
  Small Mid Value     256,970     297,147
  Thematic     77,852     245,128
  Alternative     4,574     15,872
                 
Neuberger Berman:            
  Regency     173,385     214,323
  Intrinsic     59,330     40,001
  Growth     17,609     109,985
                 
T. Rowe:            
  Blue Chip     1,852,512     13,375,273
                 
Pimco:            
  Total Return     1,427,555     1,331,756
  Low Duration     397,277     1,114,178
  Short Term     131,151     399,591
  Emerging     5,285     16,292
  Low Duration Adv.     37,463     10,322
  Real Return     1,740,321     356,410
  Commodity     32,192     60,371
                 
Ibbotson:            
  Balanced     76,455     77,245
  Growth     77,396     25,125
  Income     34,831     172,093
                 
Franklin Templeton:            
  Global Bond     1,140,284     2,484,467
  Income     1,505,199     454,158
  Global Discovery     22,311     891
  Small Cap     34,076     52,792
  Foreign     541,269     16,272
                 
AllianceBernstein:            
  Growth and Income     65,340     16,390

 

FS-85 
 

4. PURCHASES AND SALES OF INVESTMENTS, continued

 

 

        Purchases   Sales
American Funds:            
  Managed   $ 4,058,893   $ 7,817,517
  Blue Chip     136,971     295,655
  Global     119,942     59,272
  Growth     800,027     341,320
  International     33,263     110,453
  New World     189,870     62,411
  Growth-Income     499,831     142,766
  Asset     362,106     366,649
                 
Columbia:            
  Strategic     51,729     14,899
  Emerging     4,051     2,794
  International     3,890     2,152
  Smaller-Cap     54,550     32,345
  Mid Cap     145,546     50,188
  High Yield     42,678     24,148
  Large Core     68,591     73,158
                 
Ivy:              
  Strategy     140     64
  Balanced     1,296,491     705,972
  Energy     178,642     121,809
  Small Cap Value     35,487     14,880
  Science     341,358     220,599
  Mid Cap Growth     143,932     52,004
  International     35,241     33,807
  Global     38,693     8,619
  High Income     13,130     25,709
                 
Janus:            
  Flexible     45,027     78,477
                 
Putnam:            
  Health     56,199     100,856
  Asset     4,007     9,175
                 
Van Eck:            
  Gold     88,073     68,564
  Hard Assets     16,607     14,200

 

FS-86 
 

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 subaccounts 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 .95 percent and 1.40 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 $50 per policy annually, or as rider charges taken as a percent of net assets of .10 to 1.50 percent annualized, depending on the product and options 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-87 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
Fidelity:                            
Equity-Income IC                          
2023 90.48  158.76    123,855   15,967,441   1.86   1.25  1.40    9.12  9.28 
2022 82.92  145.28    137,297   16,182,997   1.85   1.25  1.40    (6.27) (6.13)
2021 88.47  154.77    151,649   18,951,290   1.88   1.25  1.40    23.16  23.35 
2020 71.83  125.48    163,294   16,461,478   1.80   1.25  1.40    5.21  5.37 
2019 68.28  119.08    183,141   17,430,133   1.98   1.25  1.40    25.68  25.86 
                             
Equity-Income SC                          
2023 98.75  98.75    18,040   1,781,483   1.84   0.95  0.95    9.49  9.49 
2022 90.19  90.19    19,555   1,763,649   1.79   0.95  0.95    (5.98) (5.98)
2021 95.93  95.93    21,396   2,052,414   1.63   0.95  0.95    23.65  23.65 
2020 77.58  77.58    25,552   1,982,301   1.73   0.95  0.95    5.54  5.54 
2019 73.51  73.51    28,498   2,094,823   1.91   0.95  0.95    26.12  26.12 
                             
Equity-Income SC2                          
2023 81.16  81.16    113,379   9,202,182   1.73   0.95  0.95    9.34  9.34 
2022 74.23  74.23    125,195   9,293,146   1.66   0.95  0.95    (6.14) (6.14)
2021 79.08  79.08    138,768   10,974,114   1.65   0.95  0.95    23.43  23.43 
2020 64.07  64.07    155,836   9,984,490   1.64   0.95  0.95    5.43  5.43 
2019 60.77  60.77    169,085   10,274,986   1.82   0.95  0.95    25.91  25.91 
                             
Growth IC                            
2023 228.69  328.16    84,502   24,980,282   0.13   1.25  1.40    34.35  34.55 
2022 170.22  243.88    93,575   20,636,608   0.62   1.25  1.40    (25.50) (25.39)
2021 228.49  326.88    101,315   29,965,341    -    1.25  1.40    21.51  21.69 
2020 188.04  268.62    110,405   26,839,227   0.07   1.25  1.40    41.89  42.11 
2019 132.52  189.03    115,701   19,796,568   0.26   1.25  1.40    32.45  32.65 
                             
Growth SC                            
2023 249.66  249.66    11,667   2,912,675   0.04   0.95  0.95    34.82  34.82 
2022 185.18  185.18    12,403   2,296,868   0.52   0.95  0.95    (25.23) (25.23)
2021 247.69  247.69    13,929   3,449,992    -    0.95  0.95    21.92  21.92 
2020 203.15  203.15    15,175   3,082,723   0.06   0.95  0.95    42.39  42.39 
2019 142.67  142.67    17,103   2,440,117   0.16   0.95  0.95    32.92  32.92 
                             
Growth SC2                          
2023 186.63  186.63    41,706   7,783,571    -    0.95  0.95    34.61  34.61 
2022 138.64  138.64    44,455   6,163,394   0.36   0.95  0.95    (25.35) (25.35)
2021 185.73  185.73    46,844   8,700,477    -    0.95  0.95    21.74  21.74 
2020 152.56  152.56    55,279   8,433,344   0.04   0.95  0.95    42.19  42.19 
2019 107.29  107.29    63,508   6,813,826   0.06   0.95  0.95    32.71  32.71 

 

FS-88 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
Fidelity, continued:                          
High Income IC                          
2023 21.86  53.72    80,393   2,751,791   5.58   1.25  1.40    8.95  9.11 
2022 20.07  49.23    87,782   2,722,007   4.77   1.25  1.40    (12.60) (12.47)
2021 22.96  56.25    104,043   3,741,269   5.09   1.25  1.40    2.96  3.12 
2020 22.30  54.55    109,647   3,861,409   4.95   1.25  1.40    1.32  1.47 
2019 22.01  53.76    127,634   4,570,348   4.89   1.25  1.40    13.51  13.68 
                             
High Income SC                          
2023 23.91  23.91    19,322   462,013   5.38   0.95  0.95    9.46  9.46 
2022 21.84  21.84    21,861   477,514   4.67   0.95  0.95    (12.39) (12.39)
2021 24.93  24.93    28,530   711,328   5.17   0.95  0.95    3.51  3.51 
2020 24.09  24.09    29,713   715,695   4.28   0.95  0.95    1.68  1.68 
2019 23.69  23.69    40,821   967,001   4.93   0.95  0.95    13.84  13.84 
                             
High Income SC2                          
2023 18.06  18.06    2,035,618   36,768,924   5.41   0.95  0.95    9.20  9.20 
2022 16.54  16.54    2,323,076   38,425,406   4.78   0.95  0.95    (12.51) (12.51)
2021 18.90  18.90    2,739,872   51,797,046   5.31   0.95  0.95    3.31  3.31 
2020 18.30  18.30    2,727,367   49,910,045   4.99   0.95  0.95    1.45  1.45 
2019 18.04  18.04    2,849,273   51,393,136   5.04   0.95  0.95    13.69  13.69 
                             
Overseas IC                          
2023 45.99  56.21    68,873   3,760,441   1.03   1.25  1.40    18.84  19.02 
2022 38.70  47.23    75,084   3,449,426   1.03   1.25  1.40    (25.53) (25.42)
2021 51.97  63.33    83,232   5,133,851   0.52   1.25  1.40    18.04  18.22 
2020 44.03  53.57    89,993   4,695,415   0.44   1.25  1.40    14.01  14.18 
2019 38.62  46.92    98,879   4,520,509   1.71   1.25  1.40    25.99  26.18 
                             
Overseas SC                          
2023 50.65  50.65    9,350   473,594   0.92   0.95  0.95    19.28  19.28 
2022 42.47  42.47    10,714   454,994   0.97   0.95  0.95    (25.29) (25.29)
2021 56.85  56.85    11,135   632,994   0.44   0.95  0.95    18.45  18.45 
2020 47.99  47.99    11,956   573,813   0.33   0.95  0.95    14.40  14.40 
2019 41.95  41.95    13,594   570,299   1.55   0.95  0.95    26.47  26.47 
                             
Overseas SC2                          
2023 38.89  38.89    190,313   7,400,769   0.77   0.95  0.95    19.09  19.09 
2022 32.65  32.65    220,474   7,199,315   0.89   0.95  0.95    (25.39) (25.39)
2021 43.77  43.77    216,047   9,455,634   0.32   0.95  0.95    18.26  18.26 
2020 37.01  37.01    244,909   9,063,432   0.22   0.95  0.95    14.24  14.24 
2019 32.39  32.39    259,055   8,391,716   1.52   0.95  0.95    26.30  26.30 

 

FS-89 
 


5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
Fidelity, continued:                          
Asset Mgr. IC                          
2023 43.04  68.44    92,475   5,997,091   2.26   1.25  1.40    11.39  11.55 
2022 38.64  61.36    104,950   6,096,290   2.00   1.25  1.40    (16.11) (15.99)
2021 46.06  73.04    117,268   8,074,937   1.56   1.25  1.40    8.40  8.56 
2020 42.49  67.28    132,894   8,448,502   1.48   1.25  1.40    13.27  13.44 
2019 37.51  59.31    145,777   8,149,931   1.73   1.25  1.40    16.61  16.78 
                             
Asset Mgr. SC                          
2023 46.91  46.91    22,153   1,039,319   2.28   0.95  0.95    11.84  11.84 
2022 41.95  41.95    23,023   965,805   1.85   0.95  0.95    (15.83) (15.83)
2021 49.84  49.84    26,784   1,334,921   1.45   0.95  0.95    8.76  8.76 
2020 45.82  45.82    29,474   1,350,645   1.39   0.95  0.95    13.65  13.65 
2019 40.32  40.32    35,814   1,443,988   1.57   0.95  0.95    17.05  17.05 
                             
Asset Mgr. SC2                          
2023 36.76  36.76    39,546   1,453,877   2.12   0.95  0.95    11.59  11.59 
2022 32.94  32.94    44,577   1,468,574   1.77   0.95  0.95    (15.95) (15.95)
2021 39.20  39.20    51,962   2,036,713   1.40   0.95  0.95    8.65  8.65 
2020 36.08  36.08    53,808   1,941,215   1.26   0.95  0.95    13.45  13.45 
2019 31.80  31.80    59,260   1,884,410   1.55   0.95  0.95    16.90  16.90 
                             
Inv. Bond IC                          
2023 24.82  27.81    146,479   4,211,304   2.49   0.95  1.40    4.73  5.20 
2022 23.69  26.43    163,937   4,512,421   2.09   0.95  1.40    (14.16) (13.78)
2021 27.60  30.66    200,933   6,445,446   2.00   0.95  1.40    (1.98) (1.54)
2020 28.16  31.14    212,311   6,981,943   2.09   0.95  1.40    7.87  8.36 
2019 26.11  28.73    251,075   7,638,571   2.70   0.95  1.40    8.15  8.63 
                             
Inv. Bond SC2                          
2023 13.11  22.78    2,797,954   61,960,639   2.45   0.95  1.00    4.95  5.00 
2022 12.49  21.69    2,940,024   62,592,795   1.99   0.95  1.00    (14.07) (14.03)
2021 14.54  25.23    3,387,053   83,775,363   1.81   0.95  1.00    (1.88) (1.83)
2020 14.82  25.70    3,374,854   84,903,398   2.03   0.95  1.00    8.08  8.13 
2019 13.71  23.77    3,715,232   86,492,882   2.51   0.95  1.00    8.32  8.37 
                             
Contrafund IC                          
2023 147.15  164.99    122,534   19,390,931   0.48   1.25  1.40    31.61  31.80 
2022 111.81  125.17    136,942   16,452,453   0.50   1.25  1.40    (27.33) (27.22)
2021 153.87  172.00    148,286   24,512,036   0.06   1.25  1.40    26.06  26.25 
2020 122.05  136.24    163,532   21,430,504   0.25   1.25  1.40    28.75  28.94 
2019 94.80  105.66    194,063   19,787,559   0.46   1.25  1.40    29.75  29.95 

 

FS-90 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
Fidelity, continued:                          
Contrafund SC                          
2023 160.76  160.76    28,189   4,531,692   0.37   0.95  0.95    32.09  32.09 
2022 121.71  121.71    31,901   3,882,659   0.40   0.95  0.95    (27.08) (27.08)
2021 166.90  166.90    37,228   6,213,287   0.05   0.95  0.95    26.51  26.51 
2020 131.93  131.93    40,997   5,408,811   0.15   0.95  0.95    29.20  29.20 
2019 102.12  102.12    45,143   4,609,796   0.36   0.95  0.95    30.21  30.21 
                             
Contrafund SC2                          
2023 80.17  135.38    231,992   29,082,046   0.25   0.95  1.00    31.80  31.87 
2022 60.83  102.66    255,644   24,821,661   0.27   0.95  1.00    (27.22) (27.18)
2021 83.57  140.98    273,079   36,108,012   0.03   0.95  1.00    26.25  26.31 
2020 66.20  111.62    314,267   33,239,035   0.08   0.95  1.00    28.94  29.00 
2019 51.34  86.52    373,853   30,500,014   0.21   0.95  1.00    29.97  30.04 
                             
Asset Mgr. Gr. IC                          
2023 46.60  51.79    19,567   929,067   1.65   1.25  1.40    14.76  14.93 
2022 40.61  45.06    24,124   994,480   1.77   1.25  1.40    (18.03) (17.91)
2021 49.54  54.89    25,805   1,296,755   1.41   1.25  1.40    12.38  12.55 
2020 44.08  48.77    26,444   1,182,462   1.11   1.25  1.40    15.64  15.81 
2019 33.12  42.11    28,839   1,112,903   1.56   1.25  1.40    21.13  21.31 
                             
Asset Mgr. Gr. SC                           
2023 44.03  44.03    3,252   143,189   1.77   0.95  0.95    15.12  15.12 
2022 38.25  38.25    3,266   124,922   1.76   0.95  0.95    (17.73) (17.73)
2021 46.50  46.50    3,283   152,648   1.35   0.95  0.95    12.81  12.81 
2020 41.21  41.21    3,309   136,360   1.03   0.95  0.95    16.05  16.05 
2019 35.52  35.52    3,646   129,475   1.50   0.95  0.95    21.50  21.50 
                             
Asset Mgr. Gr. SC2                          
2023 34.80  34.80    14,358   499,697   1.66   0.95  0.95    14.96  14.96 
2022 30.28  30.28    16,540   500,761   1.46   0.95  0.95    (17.83) (17.83)
2021 36.84  36.84    19,459   716,972   1.14   0.95  0.95    12.61  12.61 
2020 32.72  32.72    21,696   709,832   0.86   0.95  0.95    15.84  15.84 
2019 28.24  28.24    24,044   679,075   1.29   0.95  0.95    21.34  21.34 
                             
Mid Cap SC2                          
2023 78.38  83.68    53,817   3,920,646   0.38   0.95  1.40    13.22  13.72 
2022 69.23  73.58    56,740   3,703,564   0.25   0.95  1.40    (16.14) (15.77)
2021 82.56  87.36    65,284   5,080,880   0.37   0.95  1.40    23.57  24.13 
2020 66.81  70.38    69,001   4,463,685   0.40   0.95  1.40    16.23  16.75 
2019 57.48  60.28    78,476   4,365,591   0.67   0.95  1.40    21.47  22.01 


 

FS-91 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
Fidelity, continued:                          
Money Market                          
2023 0.97  1.01    13,195,737   13,262,336   4.78   0.95  1.40    3.44  3.91 
2022 0.94  0.98    15,163,897   14,659,741   1.53   0.95  1.40    0.03  0.48 
2021 0.94  0.97    12,075,577   11,632,795   0.01   0.95  1.40    (1.38) (0.93)
2020 0.95  0.98    13,074,064   12,724,373   0.29   0.95  1.40    (1.07) (0.63)
2019 0.96  0.99    11,274,789   11,040,862   2.01   0.95  1.40    0.60  1.05 
                             
Money Market SC2                          
2023 1.02  1.02    2,037,209   2,071,956   4.53   1.00  1.00    3.60  3.60 
2022 0.98  0.98    2,760,941   2,710,445   1.82   1.00  1.00    0.26  0.26 
2021 0.98  0.98    929,540   910,223   0.01   1.00  1.00    (0.99) (0.99)
2020 0.99  0.99    995,842   984,814   0.19   1.00  1.00    (0.76) (0.76)
2019 1.00  1.00    803,081   800,253   1.68   1.00  1.00    0.75  0.75 
                             
Index 500 SC2                          
2023 495.74  495.74    18,499   9,170,441   1.26   1.00  1.00    24.63  24.63 
2022 397.75  397.75    18,695   7,436,074   1.19   1.00  1.00    (19.23) (19.23)
2021 492.43  492.43    21,124   10,402,035   1.05   1.00  1.00    26.99  26.99 
2020 387.79  387.79    20,496   7,947,904   1.58   1.00  1.00    16.77  16.77 
2019 332.09  332.09    20,649   6,857,332   1.78   1.00  1.00    29.72  29.72 
                             
Strategic SC2                          
2023 13.01  13.01    35,719   464,801   4.36   1.00  1.00    8.10  8.10 
2022 12.04  12.04    38,258   460,553   3.22   1.00  1.00    (12.40) (12.40)
2021 13.74  13.74    42,672   586,375   2.37   1.00  1.00    2.50  2.50 
2020 13.41  13.41    38,346   514,055   3.34   1.00  1.00    6.09  6.09 
2019 12.64  12.64    35,087   443,349   4.05   1.00  1.00    9.56  9.56 
                             
Alger:                            
Balanced                            
2023 40.92  45.83    111,527   5,665,558   1.43   0.95  1.40    15.81  16.33 
2022 35.33  39.40    125,833   5,576,542   1.10   0.95  1.40    (12.54) (12.14)
2021 40.40  44.84    145,985   7,377,713   0.82   0.95  1.40    17.47  18.00 
2020 34.39  38.00    153,902   6,610,612   1.27   0.95  1.40    8.70  9.19 
2019 31.64  34.80    161,018   6,399,968   1.47   0.95  1.40    17.85  18.38 
                             
MFS:                            
Utilities                            
2023 101.31  113.57    240,258   25,117,926   3.49   0.95  1.40    (3.46) (3.03)
2022 104.94  117.12    255,667   27,646,868   2.35   0.95  1.40    (0.64) (0.19)
2021 105.62  117.34    280,062   30,357,470   1.74   0.95  1.40    12.51  13.02 
2020 93.87  103.83    296,276   28,474,561   2.50   0.95  1.40    4.43  4.90 
2019 89.89  98.98    313,720   28,824,613   3.96   0.95  1.40    23.33  23.89 

 


FS-92 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
MFS, continued:                          
New Discovery                          
2023 60.48  67.38    100,646   6,593,591    -   0.95  1.40    12.83  13.34 
2022 53.60  59.45    108,864   6,291,408    -   0.95  1.40    (30.73) (30.42)
2021 77.38  85.45    118,064   9,816,475    -   0.95  1.40    0.39  0.84 
2020 77.08  84.73    137,249   11,321,341    -   0.95  1.40    43.86  44.52 
2019 53.58  58.63    167,037   9,543,670    -   0.95  1.40    39.74  40.36 
                             
Total Return                          
2023 38.76  44.01    114,905   5,023,530   2.01   0.95  1.40    8.92  9.40 
2022 35.58  40.23    131,256   5,239,584   1.74   0.95  1.40    (10.84) (10.43)
2021 39.91  44.92    155,008   6,907,338   1.77   0.95  1.40    12.54  13.04 
2020 35.46  39.73    180,086   7,098,177   2.29   0.95  1.40    8.29  8.78 
2019 32.75  36.53    189,010   6,851,729   2.31   0.95  1.40    18.72  19.25 
                             
Growth SC                            
2023 102.25  102.25    9,164   937,047    -   1.00  1.00    34.17  34.17 
2022 76.21  76.21    8,554   651,890    -   1.00  1.00    (32.48) (32.48)
2021 112.87  112.87    10,662   1,203,431    -   1.00  1.00    22.01  22.01 
2020 92.51  92.51    10,621   982,522    -   1.00  1.00    30.23  30.23 
2019 71.03  71.03    10,354   735,470    -   1.00  1.00    36.41  36.41 
                             
New Discovery SC                          
2023 30.14  30.14    25,192   759,178    -   1.00  1.00    13.12  13.12 
2022 26.64  26.64    25,745   685,851    -   1.00  1.00    (30.69) (30.69)
2021 38.44  38.44    29,482   1,133,158    -   1.00  1.00    0.56  0.56 
2020 38.22  38.22    21,858   835,400    -   1.00  1.00    44.14  44.14 
2019 26.52  26.52    29,080   771,101    -   1.00  1.00    39.87  39.87 
                             
Utilities SC                            
2023 43.93  43.93    69,059   3,033,696   3.37   1.00  1.00    (3.30) (3.30)
2022 45.43  45.43    46,183   2,097,971   2.31   1.00  1.00    (0.52) (0.52)
2021 45.66  45.66    43,357   1,979,810   1.49   1.00  1.00    12.69  12.69 
2020 40.52  40.52    43,862   1,777,264   2.21   1.00  1.00    4.57  4.57 
2019 38.75  38.75    42,454   1,645,000   4.08   1.00  1.00    23.56  23.56 
                             
Strategic                             
2023 11.63  12.19    240,133   2,898,452   3.81   0.95  1.40    6.10  6.58 
2022 10.96  11.43    220,201   2,498,189   3.37   0.95  1.40    (14.90) (14.52)
2021 12.88  13.38    271,946   3,614,952   3.17   0.95  1.40    (0.93) (0.48)
2020 13.00  13.44    279,065   3,727,487   3.63   0.95  1.40    7.83  8.32 
2019 12.06  12.41    304,489   3,757,696   3.38   0.95  1.40    10.05  10.55 

 

FS-93 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
MFS, continued:                          
Research                            
2023 20.77  21.60    1,148,626   24,785,281   1.06   0.95  1.40    11.45  11.95 
2022 18.62  19.29    1,311,900   25,287,200   1.86   0.95  1.40    (18.72) (18.35)
2021 22.91  23.63    1,394,850   32,934,556   0.81   0.95  1.40    10.01  10.52 
2020 20.82  21.38    1,575,087   33,654,625   2.07   0.95  1.40    11.33  11.88 
2019 18.70  19.11    1,781,630   34,028,582   1.46   0.95  1.40    26.25  26.84 
                             
Blended Core SC                          
2023 110.03  110.03    2,163   237,949   1.25   1.00  1.00    26.93  26.93 
2022 86.68  86.68    1,241   107,601   0.64   1.00  1.00    (17.03) (17.03)
2021 104.48  104.48    1,385   144,648   1.44   1.00  1.00    27.90  27.90 
2020 81.69  81.69    466   38,082   1.36   1.00  1.00    13.92  13.92 
2019 71.71  71.71    436   31,230   1.13   1.00  1.00    27.59  27.59 
                             
Corporate SC                          
2023 12.50  12.50    88,668   1,107,977   4.23   1.00  1.00    7.82  7.82 
2022 11.59  11.59    37,997   440,387   2.70   1.00  1.00    (17.45) (17.45)
2021 14.04  14.04    45,951   645,136   2.66   1.00  1.00    (2.63) (2.63)
2020 14.42  14.42    49,014   706,759   3.18   1.00  1.00    9.24  9.24 
2019 13.20  13.20    49,328   651,113   3.54   1.00  1.00    13.32  13.32 
                             
Government SC                          
2023 12.07  12.07    7,134   86,082   1.22   1.00  1.00    2.83  2.83 
2022 11.73  11.73    7,638   89,625   0.41   1.00  1.00    (13.32) (13.32)
2021 13.54  13.54    85,073   1,151,636   1.96   1.00  1.00    (3.11) (3.11)
2020 13.97  13.97    109,197   1,525,676   2.66   1.00  1.00    5.06  5.06 
2019 13.30  13.30    104,208   1,385,848   2.78   1.00  1.00    5.29  5.29 
                             
Growth Allocation SC                          
2023 19.93  19.93    21,917   436,812   2.22   1.00  1.00    13.89  13.89 
2022 17.50  17.50    19,797   346,445   1.57   1.00  1.00    (19.31) (19.31)
2021 21.69  21.69    45,886   995,115   1.35   1.00  1.00    14.40  14.40 
2020 18.96  18.96    22,413   424,897   1.61   1.00  1.00    14.31  14.31 
2019 16.58  16.58    23,353   387,293   2.03   1.00  1.00    25.41  25.41 
                             
Moderate SC                          
2023 19.51  19.51    44,609   870,434   2.53   1.00  1.00    11.53  11.53 
2022 17.50  17.50    43,348   758,376   1.81   1.00  1.00    (17.74) (17.74)
2021 21.27  21.27    35,550   756,072   1.77   1.00  1.00    10.15  10.15 
2020 19.31  19.31    39,739   767,254   1.74   1.00  1.00    12.94  12.94 
2019 17.09  17.09    79,131   1,352,708   2.26   1.00  1.00    20.69  20.69 

 

FS-94 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
MFS, continued:                          
Conservative SC                          
2023 15.01  15.01    24,545   368,498   2.66   1.00  1.00    8.94  8.94 
2022 13.78  13.78    24,934   343,613   2.32   1.00  1.00    (16.37) (16.37)
2021 16.48  16.48    18,905   311,511   1.74   1.00  1.00    5.64  5.64 
2020 15.60  15.60    11,058   172,470   2.38   1.00  1.00    10.95  10.95 
2019 14.06  14.06    10,931   153,679   2.37   1.00  1.00    15.32  15.32 
                             
Blended Small Cap SC                          
2023 23.44  23.44    12,083   283,239   0.53   1.00  1.00    17.49  17.49 
2022 19.95  19.95    11,905   237,504   0.55   1.00  1.00    (19.37) (19.37)
2021 24.74  24.74    6,620   163,801   0.63   1.00  1.00    27.89  27.89 
2020 19.35  19.35    13,296   257,238   0.53   1.00  1.00    1.12  1.12 
2019 19.13  19.13    16,805   321,523   0.33   1.00  1.00    25.10  25.10 
                             
Global Real Estate IC                          
2023 15.44  15.44    1,625   25,089   0.72   0.95  0.95    10.41  10.41 
2022 13.99  13.99    3,373   47,176   1.58   0.95  0.95    (27.63) (27.63)
2021 19.33  19.33    2,251   43,502   1.80   0.95  0.95    27.57  27.57 
2020  -   -     -    -    -    -   -     -   - 
2019  -   -     -    -    -    -   -     -   - 
                             
Global Real Estate SC                          
2023 19.05  19.05    6,778   129,102   0.66   1.00  1.00    10.10  10.10 
2022 17.30  17.30    2,057   35,575   1.01   1.00  1.00    (27.86) (27.86)
2021 23.98  23.98    1,104   26,462   0.82   1.00  1.00    28.58  28.58 
2020 18.65  18.65    783   14,597    -   1.00  1.00    8.50  8.50 
2019  -   -     -    -    -    -   -     -   - 
                             
Van Kampen:                          
Emerging Markets                          
2023 24.63  27.60    762,564   18,428,700   1.63   0.95  1.40    10.43  10.92 
2022 22.31  24.88    853,682   18,609,479   0.44   0.95  1.40    (26.12) (25.79)
2021 30.19  33.53    849,058   24,961,745   0.83   0.95  1.40    1.56  2.02 
2020 29.73  32.87    914,939   26,380,420   1.45   0.95  1.40    12.85  13.36 
2019 26.35  29.00    1,049,539   26,711,711   1.07   0.95  1.40    17.93  18.46 
                             
Intl. Magnum                          
2023 19.99  22.49    48,473   1,052,304   1.72   0.95  1.40    12.49  13.00 
2022 17.77  19.90    59,946   1,158,230    -   0.95  1.40    (18.09) (17.72)
2021 21.70  24.19    67,300   1,581,433   1.86   0.95  1.40    6.86  7.35 
2020 20.30  22.53    80,412   1,768,149   1.44   0.95  1.40    9.37  9.87 
2019 18.56  20.51    94,885   1,905,603   1.91   0.95  1.40    16.14  16.66 


 

FS-95 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
Van Kampen, continued:                        
U.S. Real Estate                          
2023 49.54  55.49    961,851   50,128,089   2.25   0.95  1.40    12.93  13.44 
2022 43.87  48.91    1,027,692   47,224,743   1.21   0.95  1.40    (28.06) (27.74)
2021 60.98  67.69    1,078,084   68,577,045   2.03   0.95  1.40    37.86  38.48 
2020 44.23  48.88    1,374,851   63,161,936   2.94   0.95  1.40    (18.01) (17.64)
2019 53.95  59.35    1,166,379   65,092,376   1.86   0.95  1.40    17.29  17.82 
                             
Global II                            
2023 13.17  13.17    6,569   86,499   1.58   1.00  1.00    12.82  12.82 
2022 11.67  11.67    6,718   78,416    -   1.00  1.00    (17.89) (17.89)
2021 14.21  14.21    5,540   78,749   1.81   1.00  1.00    7.15  7.15 
2020 13.27  13.27    6,424   85,224   1.30   1.00  1.00    9.74  9.74 
2019 12.09  12.09    7,910   95,618   1.71   1.00  1.00    16.57  16.57 
                             
Calvert:                            
Balanced                            
2023 5.10  5.67    1,068,135   5,756,685   1.58   0.95  1.40    15.20  15.72 
2022 4.43  4.90    1,155,620   5,387,211   1.18   0.95  1.40    (16.58) (16.21)
2021 5.31  5.84    1,296,308   7,241,124   1.17   0.95  1.40    13.52  14.03 
2020 4.67  5.12    1,366,285   6,705,211   1.53   0.95  1.40    13.66  14.17 
2019 4.11  4.49    1,419,539   6,110,659   1.57   0.95  1.40    22.68  23.23 
                             
Mid Cap                            
2023 79.77  88.67    21,734   1,821,648   0.19   0.95  1.40    10.11  10.59 
2022 72.45  80.18    22,753   1,725,805    -   0.95  1.40    (20.59) (20.24)
2021 91.24  100.53    23,865   2,270,714   0.19   0.95  1.40    13.43  13.94 
2020 80.43  88.23    26,901   2,246,788   0.44   0.95  1.40    10.69  11.19 
2019 72.67  79.35    30,613   2,300,344   0.44   0.95  1.40    29.54  30.12 
                             
Balanced F                            
2023 3.50  3.50    397,663   1,393,792   1.57   1.00  1.00    15.27  15.27 
2022 3.04  3.04    108,178   328,948   1.24   1.00  1.00    (16.30) (16.30)
2021 3.63  3.63    97,156   352,982   0.95   1.00  1.00    13.58  13.58 
2020 3.20  3.20    144,496   462,194   1.43   1.00  1.00    13.62  13.62 
2019 2.82  2.82    154,778   435,748   1.62   1.00  1.00    23.04  23.04 
                             
American Century:                          
Income & Growth                          
2023 21.09  23.55    1,621,961   38,594,497   1.54   0.95  1.40    7.15  7.63 
2022 19.69  21.88    1,760,970   38,937,292   1.73   0.95  1.40    (13.94) (13.56)
2021 22.87  25.31    2,050,005   52,432,858   1.06   0.95  1.40    21.94  22.49 
2020 18.76  20.67    2,429,786   50,772,303   1.95   0.95  1.40    10.25  10.75 
2019 17.01  18.66    2,743,359   51,753,850   2.07   0.95  1.40    22.23  22.78 


 

FS-96 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
American Century, continued:                        
Mid Cap Value                          
2023 42.58  45.64    176,031   8,004,114   2.30   0.95  1.40    4.67  5.14 
2022 33.24  43.41    186,704   8,076,237   2.23   0.95  1.40    (2.57) (2.12)
2021 34.12  44.36    231,256   10,226,897   1.12   0.95  1.40    21.50  22.04 
2020 28.08  36.35    271,724   9,845,369   1.82   0.95  1.40    (0.21) 0.25 
2019 28.14  36.25    302,260   10,934,634   2.06   0.95  1.40    27.35  27.93 
                             
Inc. & Growth II                          
2023 16.06  16.06    92,705   1,488,854   1.29   1.00  1.00    7.16  7.16 
2022 14.99  14.99    67,143   1,006,233   1.55   1.00  1.00    (13.70) (13.70)
2021 17.36  17.36    63,740   1,106,830   0.84   1.00  1.00    22.12  22.12 
2020 14.22  14.22    53,700   763,596   1.72   1.00  1.00    10.34  10.34 
2019 12.89  12.89    57,075   735,534   1.83   1.00  1.00    22.52  22.52 
                             
AIM:                            
Intl. Growth                          
2023 48.50  51.73    145,819   7,535,984   0.19   0.95  1.40    16.51  17.03 
2022 41.63  44.20    171,603   7,581,720   1.73   0.95  1.40    (19.44) (19.08)
2021 51.67  54.62    177,408   9,687,766   1.25   0.95  1.40    4.42  4.89 
2020 49.48  52.07    199,472   10,392,892   2.38   0.95  1.40    12.41  12.92 
2019 44.02  46.11    222,832   10,285,478   1.55   0.95  1.40    26.79  27.36 
                             
Global                            
2023 19.41  20.72    118,339   2,454,545   1.52   0.95  1.40    7.54  8.02 
2022 18.05  19.18    119,881   2,300,246   2.88   0.95  1.40    (25.98) (25.64)
2021 24.38  25.80    114,867   2,962,546   2.77   0.95  1.40    23.97  24.53 
2020 19.67  20.72    127,097   2,631,659   5.11   0.95  1.40    (13.54) (13.15)
2019 22.75  23.85    123,310   2,940,788   4.59   0.95  1.40    21.29  21.84 
                             
Global Value                          
2023 27.56  30.99    97,916   2,759,131   0.56   0.95  1.40    20.04  20.58 
2022 22.95  25.70    112,422   2,625,563   0.34   0.95  1.40    (22.96) (22.61)
2021 29.79  33.21    117,888   3,559,437   0.95   0.95  1.40    14.36  14.88 
2020 26.05  28.91    127,571   3,353,444   1.34   0.95  1.40    11.65  12.16 
2019 23.33  25.77    145,633   3,416,459   1.38   0.95  1.40    23.46  24.02 
                             
Discovery Mid Cap                          
2023 94.56  96.06    23,667   2,265,748    -   0.95  1.40    11.60  12.09 
2022 84.74  85.70    27,029   2,311,275    -   0.95  1.40    (31.96) (31.63)
2021 124.53  125.35    29,852   3,735,999    -   0.95  1.40    17.49  17.97 
2020 105.99  106.25    33,168   3,521,994    -   0.95  1.40    46.96  47.33 
2019  -   -     -    -    -    -   -     -   - 

 

FS-97 
 


5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
AIM, continued:                          
Diversified                            
2023 38.59  38.59    13,369   515,938   1.84   1.00  1.00    7.69  7.69 
2022 35.83  35.83    12,410   444,721   1.64   1.00  1.00    (2.90) (2.90)
2021 36.90  36.90    13,102   483,515   2.21   1.00  1.00    17.42  17.42 
2020 31.43  31.43    11,463   360,276   2.73   1.00  1.00    (1.13) (1.13)
2019 31.79  31.79    12,586   400,085   2.89   1.00  1.00    23.54  23.54 
                             
Value                            
2023 28.44  28.44    8,077   229,711   0.44   1.00  1.00    14.15  14.15 
2022 24.92  24.92    7,799   194,313   0.48   1.00  1.00    (3.83) (3.83)
2021 25.91  25.91    7,407   191,877   0.27   1.00  1.00    26.36  26.36 
2020 20.50  20.50    7,039   144,316   0.66   1.00  1.00    (0.15) (0.15)
2019 20.53  20.53    6,699   137,539   0.41   1.00  1.00    23.47  23.47 
                             
Real Estate                            
2023 17.32  17.32    90,411   1,565,809   1.23   1.00  1.00    7.75  7.75 
2022 16.07  16.07    33,353   536,098   3.03   1.00  1.00    (25.88) (25.88)
2021 21.69  21.69    27,325   592,591   2.38   1.00  1.00    24.20  24.20 
2020 17.46  17.46    31,060   542,356   4.63   1.00  1.00    (13.43) (13.43)
2019 20.17  20.17    36,632   738,912   3.79   1.00  1.00    21.43  21.43 
                             
Summit:                            
S&P MidCap                          
2023 58.06  64.26    852,717   53,697,411   1.20   0.95  1.40    14.52  15.03 
2022 50.70  55.87    961,350   52,600,077   0.92   0.95  1.40    (14.53) (14.15)
2021 59.32  65.07    1,102,158   70,360,366   0.82   0.95  1.40    22.69  23.24 
2020 48.35  52.80    1,328,710   69,091,949   1.23   0.95  1.40    11.75  12.25 
2019 43.27  47.04    1,489,617   69,037,353   1.16   0.95  1.40    24.09  24.64 
                             
Russell Small Cap                          
2023 35.13  40.65    803,704   31,251,874   0.86   0.95  1.40    14.99  15.50 
2022 30.55  35.19    867,560   29,232,893   0.80   0.95  1.40    (21.62) (21.26)
2021 38.98  44.70    960,671   41,132,281   0.74   0.95  1.40    12.94  13.45 
2020 34.51  39.40    1,133,223   42,847,908   1.07   0.95  1.40    17.98  18.51 
2019 29.25  33.25    1,327,973   42,427,196   0.92   0.95  1.40    23.34  23.89 
                             
Nasdaq-100 Index                          
2023 36.67  40.73    1,152,549   47,349,649   0.32   0.95  1.40    52.18  52.95 
2022 24.10  26.63    1,425,319   38,335,243   0.18   0.95  1.40    (33.61) (33.28)
2021 36.30  39.92    1,467,385   59,093,189   0.27   0.95  1.40    25.07  25.68 
2020 29.02  31.76    1,776,601   56,996,634   0.44   0.95  1.40    46.13  46.83 
2019 19.86  21.63    2,378,028   52,075,469   0.51   0.95  1.40    36.79  37.47 


 

FS-98 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
Summit, continued:                          
EAFE Intl.                            
2023 115.11  123.05    319,716   39,483,330   2.92   0.95  1.40    16.40  16.66 
2022 98.89  105.47    378,904   40,114,969   3.56   0.95  1.40    (15.68) (15.39)
2021 117.28  124.65    414,423   51,862,622   1.72   0.95  1.40    9.38  9.83 
2020 107.22  113.49    472,036   53,797,148   3.33   0.95  1.40    6.27  6.75 
2019 100.90  106.31    503,516   53,759,585   2.64   0.95  1.40    19.47  20.12 
                             
S&P 500                            
2023 325.92  348.70    406,846   139,831,054   1.33   0.95  1.40    24.18  24.74 
2022 262.46  279.55    474,950   131,127,744   1.21   0.95  1.40    (19.47) (19.11)
2021 325.92  345.59    531,165   181,538,527   1.28   0.95  1.40    26.64  27.21 
2020 257.36  271.67    633,119   170,453,264   1.66   0.95  1.40    16.46  16.98 
2019 220.99  232.23    728,486   167,938,678   1.76   0.95  1.40    29.33  29.91 
                             
Barclays                            
2023 57.75  61.39    1,099,987   67,634,635   2.71   0.95  1.40    4.04  4.48 
2022 55.51  58.76    1,165,938   68,622,051   2.60   0.95  1.40    (13.73) (13.35)
2021 64.35  67.81    1,349,109   91,639,426   2.39   0.95  1.40    (3.21) (2.75)
2020 66.48  69.73    1,315,258   91,877,673   2.80   0.95  1.40    5.84  6.32 
2019 62.81  65.58    1,443,493   94,851,133   3.13   0.95  1.40    6.93  7.39 
                             
Growth                            
2023 23.17  23.34    4,220,639   98,314,479   1.27   0.95  1.00    14.51  14.57 
2022 20.23  20.37    5,111,361   103,943,550   0.96   0.95  1.00    (15.78) (15.74)
2021 24.02  24.18    5,567,934   134,407,241   0.97   0.95  1.00    14.72  14.77 
2020 20.94  21.07    6,137,131   129,099,982   1.64   0.95  1.00    1.14  1.19 
2019 20.71  20.82    6,914,702   143,773,240   1.33   0.95  1.00    18.04  18.10 
                             
Mod. Growth                          
2023 21.74  22.61    2,475,918   56,355,290   1.32   0.95  1.40    12.22  12.72 
2022 19.39  20.06    2,856,605   57,691,981   1.00   0.95  1.40    (15.78) (15.41)
2021 23.02  23.71    3,156,209   75,361,235   0.98   0.95  1.40    12.09  12.57 
2020 20.54  21.06    3,449,586   73,170,124   1.60   0.95  1.40    2.30  2.77 
2019 20.08  20.49    3,658,866   75,547,277   1.43   0.95  1.40    16.97  17.45 
                             
Moderate                            
2023 20.63  21.55    2,955,984   63,537,643   1.41   0.95  1.40    10.38  10.87 
2022 18.76  19.43    3,413,348   66,170,021   1.06   0.95  1.40    (15.36) (14.98)
2021 22.16  22.86    3,961,547   90,335,347   1.04   0.95  1.40    8.54  9.03 
2020 20.42  20.97    4,301,353   89,969,881   1.68   0.95  1.40    3.89  4.37 
2019 19.66  20.09    4,511,397   90,423,044   1.55   0.95  1.40    15.39  15.91 


 

FS-99 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
Third Avenue:                          
Value                            
2023 48.89  54.10    147,812   7,894,459   2.36   0.95  1.40    19.14  19.68 
2022 41.03  45.21    174,929   7,809,629   1.45   0.95  1.40    14.50  15.02 
2021 35.84  39.31    198,302   7,709,572   0.67   0.95  1.40    20.38  20.92 
2020 29.77  32.51    234,651   7,563,121   2.67   0.95  1.40    (3.75) (3.32)
2019 30.93  33.62    269,554   8,983,240   0.27   0.95  1.40    10.90  11.40 
                             
Dreyfus:                            
MidCap                            
2023 52.73  57.98    53,401   2,632,889   0.55   0.95  1.40    16.36  16.88 
2022 45.32  49.61    58,611   2,492,121   0.45   0.95  1.40    (15.47) (15.09)
2021 53.61  58.43    64,905   3,253,838   0.45   0.95  1.40    23.82  24.38 
2020 43.30  46.97    77,957   3,158,125   0.54   0.95  1.40    6.35  6.83 
2019 40.71  43.97    88,468   3,350,989   0.41   0.95  1.40    18.19  18.73 
                             
Small Cap                            
2023 32.58  32.58    27,812   906,078   1.05   1.00  1.00    14.24  14.24 
2022 28.52  28.52    27,612   787,409   0.95   1.00  1.00    (17.48) (17.48)
2021 34.56  34.56    31,636   1,093,205   0.67   1.00  1.00    24.89  24.89 
2020 27.67  27.67    35,032   969,259   1.06   1.00  1.00    9.54  9.54 
2019 25.26  25.26    35,637   900,180   0.88   1.00  1.00    21.00  21.00 
                             
Scudder:                            
Small Mid Value                          
2023 25.14  26.96    65,500   1,754,164   1.15   0.95  1.40    13.36  13.87 
2022 22.18  23.68    69,804   1,644,939   0.85   0.95  1.40    (16.97) (16.60)
2021 26.71  28.39    79,770   2,253,189   1.29   0.95  1.40    28.69  29.27 
2020 20.75  21.96    93,205   2,035,507   1.43   0.95  1.40    (2.18) (1.74)
2019 21.22  22.35    103,124   2,293,928   0.74   0.95  1.40    19.83  20.37 
                             
Thematic                            
2023 14.73  15.80    19,272   301,612   0.88   0.95  1.40    14.44  14.95 
2022 12.87  13.75    30,414   416,431   1.08   0.95  1.40    (29.50) (29.19)
2021 18.71  19.41    33,928   656,729   0.34   0.95  1.40    6.61  7.09 
2020 17.55  18.13    36,011   651,564   1.45   0.95  1.40    20.99  21.53 
2019 14.15  14.91    44,399   662,550   1.29   0.95  1.40    29.39  29.99 
                             
Alternative                            
2023 15.63  15.63    2,031   31,734   6.36   1.00  1.00    4.62  4.62 
2022 14.94  14.94    2,910   43,469   7.12   1.00  1.00    (8.65) (8.65)
2021 16.35  16.35    2,914   47,644   1.71   1.00  1.00    11.23  11.23 
2020 14.70  14.70    3,141   46,176   2.38   1.00  1.00    4.27  4.27 
2019 14.10  14.10    3,274   46,159   3.43   1.00  1.00    13.21  13.21 

 

FS-100 
 


5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
Neuberger Berman:                          
Regency                            
2023 35.17  37.64    22,411   834,169   1.00   0.95  1.40    9.47  9.96 
2022 32.13  34.23    24,869   843,065   0.59   0.95  1.40    (11.00) (10.60)
2021 36.10  38.29    28,922   1,091,922   0.56   0.95  1.40    30.96  31.55 
2020 27.57  29.11    30,898   891,193   1.18   0.95  1.40    (3.97) (3.54)
2019 27.95  30.18    34,813   1,044,945   0.65   0.95  1.40    15.14  15.64 
                             
Intrinsic                            
2023 28.00  28.00    7,073   198,032   0.47   1.00  1.00    9.59  9.59 
2022 25.55  25.55    6,525   166,693   0.16   1.00  1.00    (10.84) (10.84)
2021 28.66  28.66    9,385   268,932   0.20   1.00  1.00    31.20  31.20 
2020 21.84  21.84    10,950   239,160   0.63   1.00  1.00    (3.80) (3.80)
2019 22.70  22.70    12,177   276,464   0.22   1.00  1.00    15.28  15.28 
                             
Growth                            
2023 41.89  41.89    11,326   474,476    -   1.00  1.00    16.80  16.80 
2022 35.87  35.87    13,523   485,054    -   1.00  1.00    (29.53) (29.53)
2021 50.90  50.90    13,353   679,664    -   1.00  1.00    11.61  11.61 
2020 45.61  45.61    16,916   771,509    -   1.00  1.00    38.32  38.32 
2019 32.97  32.97    17,299   570,387    -   1.00  1.00    31.17  31.17 
                             
T. Rowe:                            
Blue Chip                            
2023 46.50  49.87    935,708   47,021,228    -   0.95  1.40    46.89  47.56 
2022 31.65  33.79    1,184,404   40,296,829    -   0.95  1.40    (39.51) (39.24)
2021 52.33  55.62    1,115,047   62,539,380    -   0.95  1.40    15.71  16.22 
2020 45.23  47.86    1,285,413   62,030,811    -   0.95  1.40    32.05  32.65 
2019 34.25  36.08    1,613,185   58,648,453    -   0.95  1.40    27.78  28.36 
                             
Pimco:                            
Total Return                          
2023 13.37  14.28    556,819   7,957,836   3.57   0.95  1.40    4.47  4.94 
2022 12.80  13.61    563,941   7,676,304   2.59   0.95  1.40    (15.49) (15.11)
2021 15.14  16.04    675,983   10,840,068   1.83   0.95  1.40    (2.63) (2.19)
2020 15.55  16.39    669,168   10,974,756   2.14   0.95  1.40    7.13  7.62 
2019 14.52  15.23    749,863   11,436,444   3.02   0.95  1.40    6.85  7.33 
                             
Low Duration                          
2023 10.11  10.58    556,444   5,873,063   3.59   0.95  1.40    3.52  4.00 
2022 9.77  10.17    642,112   6,517,913   1.62   0.95  1.40    (7.05) (6.64)
2021 10.53  10.89    805,350   8,759,337   0.52   0.95  1.40    (2.30) (1.85)
2020 10.78  11.10    799,381   8,862,090   1.20   0.95  1.40    1.55  2.01 
2019 10.61  10.88    815,501   8,864,385   2.77   0.95  1.40    2.58  3.04 

 

FS-101 
 


5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
Pimco, continued:                          
Short Term                            
2023 11.12  11.12    114,657   1,275,050   4.36   1.00  1.00    4.75  4.75 
2022 10.62  10.62    143,712   1,525,648   1.78   1.00  1.00    (1.24) (1.24)
2021 10.75  10.75    52,776   567,316   0.93   1.00  1.00    (1.14) (1.14)
2020 10.87  10.87    46,363   504,141   1.12   1.00  1.00    1.12  1.12 
2019 10.75  10.75    13,350   143,563   2.37   1.00  1.00    1.68  1.68 
                             
Emerging                            
2023 14.17  14.17    6,436   91,176   5.60   1.00  1.00    9.90  9.90 
2022 12.89  12.89    7,586   97,790   4.70   1.00  1.00    (16.64) (16.64)
2021 15.46  15.46    8,929   138,074   4.38   1.00  1.00    (3.62) (3.62)
2020 16.04  16.04    5,097   81,774   4.50   1.00  1.00    5.53  5.53 
2019 15.20  15.20    5,426   82,486   4.32   1.00  1.00    13.52  13.52 
                             
Low Duration Adv.                          
2023 10.17  10.17    13,636   138,664   3.51   1.00  1.00    3.83  3.83 
2022 9.79  9.79    11,220   109,887   1.12   1.00  1.00    (6.77) (6.77)
2021 10.51  10.51    49,236   517,253   0.42   1.00  1.00    (2.01) (2.01)
2020 10.72  10.72    52,069   558,208   1.11   1.00  1.00    1.86  1.86 
2019 10.52  10.52    33,336   350,857   2.66   1.00  1.00    2.89  2.89 
                             
Real Return                            
2023 13.09  13.68    302,156   4,118,249   2.92   0.95  1.40    2.14  2.59 
2022 12.82  13.33    205,217   2,727,575   7.08   0.95  1.40    (13.21) (12.82)
2021 14.77  15.30    226,774   3,460,948   5.09   0.95  1.40    4.02  4.49 
2020 14.20  14.64    116,938   1,704,734   1.33   0.95  1.40    10.03  10.54 
2019 12.90  13.24    76,925   1,016,872   1.68   0.95  1.40    6.81  7.31 
                             
Commodity                            
2023 9.75  9.75    9,232   90,014   18.52   1.00  1.00    (8.84) (8.84)
2022 10.70  10.70    14,093   150,742   20.03   1.00  1.00    7.59  7.59 
2021 9.94  9.94    15,367   152,779   4.02   1.00  1.00    31.79  31.79 
2020 7.54  7.54    11,872   89,557   6.13   1.00  1.00    0.22  0.22 
2019 7.53  7.53    10,569   79,551   4.28   1.00  1.00    10.25  10.25 
                             
Ibbotson:                            
Balanced                            
2023 16.92  17.03    33,157   588,068   2.01   0.95  1.40    11.26  11.76 
2022 15.14  15.31    34,005   543,209   1.64   0.95  1.40    (14.09) (13.70)
2021 17.54  17.82    37,681   697,766   1.28   0.95  1.40    9.25  9.74 
2020 15.99  16.31    41,420   698,505   1.85   0.95  1.40    7.60  8.09 
2019 14.79  15.16    65,579   1,027,190   1.81   0.95  1.40    14.65  15.16 

 

FS-102 
 


5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
Ibbotson, continued:                          
Growth                            
2023 18.73  19.85    31,070   610,487   1.97   0.95  1.40    13.67  14.18 
2022 16.48  17.38    28,987   501,087   1.58   0.95  1.40    (14.46) (14.07)
2021 19.26  20.23    29,774   599,064   1.24   0.95  1.40    13.32  13.80 
2020 17.00  17.77    29,443   523,155   1.92   0.95  1.40    8.49  8.97 
2019 12.93  14.40    39,226   635,628   1.67   0.95  1.40    18.11  18.63 
                             
Income                            
2023 15.12  15.87    11,974   189,954   1.52   0.95  1.40    9.55  9.59 
2022 13.80  14.48    21,476   310,480   1.71   0.95  1.40    (13.40) (13.36)
2021 15.93  16.72    24,339   405,639   1.40   0.95  1.40    4.99  5.46 
2020 15.17  15.85    27,327   430,685   1.59   0.95  1.40    7.13  7.40 
2019 14.16  14.76    39,183   577,373   1.57   0.95  1.40    11.34  11.84 
                             
Franklin Templeton:                          
Global Bond                          
2023 15.21  15.88    1,754,276   27,779,580    -   0.95  1.40    1.46  1.92 
2022 14.99  15.58    1,822,846   28,350,019    -   0.95  1.40    (6.27) (5.85)
2021 15.99  16.55    2,170,079   35,830,227    -   0.95  1.40    (6.33) (5.89)
2020 17.07  17.58    2,021,162   35,467,501   8.06   0.95  1.40    (6.60) (6.18)
2019 18.28  18.74    2,024,219   37,852,702   7.08   0.95  1.40    0.61  1.05 
                             
Income                            
2023 20.49  20.56    122,616   2,687,843   5.04   0.95  1.40    7.12  7.60 
2022 19.05  19.20    84,544   1,717,941   4.71   0.95  1.40    (6.78) (6.36)
2021 20.34  20.59    72,742   1,585,264   4.60   0.95  1.40    15.14  15.66 
2020 17.59  17.89    70,018   1,320,536   6.09   0.95  1.40    (0.71) (0.26)
2019 17.63  18.01    76,002   1,435,487   4.99   0.95  1.40    14.45  14.95 
                             
Global Discovery                          
2023 31.40  31.40    3,566   111,973   2.58   1.00  1.00    19.12  19.12 
2022 26.36  26.36    3,058   80,597   1.36   1.00  1.00    (5.69) (5.69)
2021 27.95  27.95    2,839   79,338   2.82   1.00  1.00    17.95  17.95 
2020 23.70  23.70    2,294   54,350   2.40   1.00  1.00    (5.41) (5.41)
2019 25.05  25.05    1,129   28,276   1.79   1.00  1.00    23.13  23.13 
                             
Small Cap                            
2023 34.64  34.64    11,230   388,974   0.54   1.00  1.00    11.63  11.63 
2022 31.03  31.03    12,473   387,017   1.01   1.00  1.00    (10.96) (10.96)
2021 34.85  34.85    15,563   542,299   1.27   1.00  1.00    24.12  24.12 
2020 28.07  28.07    15,492   434,936   1.32   1.00  1.00    4.14  4.14 
2019 26.96  26.96    14,161   381,754   1.06   1.00  1.00    25.09  25.09 


 

FS-103 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
Franklin Templeton, continued:                      
Foreign                            
2023 16.67  16.67    45,282   754,908   3.18   1.00  1.00    19.56  19.56 
2022 13.94  13.94    9,259   129,104   3.23   1.00  1.00    (8.52) (8.52)
2021 15.24  15.24    17,035   259,650   1.83   1.00  1.00    3.13  3.13 
2020 14.78  14.78    16,655   246,173   3.29   1.00  1.00    (2.14) (2.14)
2019 15.10  15.10    9,382   141,702   1.70   1.00  1.00    11.41  11.41 
                             
AllianceBernstein:                          
Growth and Income                          
2023 59.01  59.01    5,847   345,004   1.25   1.00  1.00    10.62  10.62 
2022 53.35  53.35    5,418   289,041   1.15   1.00  1.00    (5.37) (5.37)
2021 56.37  56.37    5,113   288,251   0.66   1.00  1.00    26.57  26.57 
2020 44.54  44.54    5,994   266,955   1.39   1.00  1.00    1.45  1.45 
2019 43.90  43.90    5,883   258,270   1.06   1.00  1.00    22.38  22.38 
                             
American Funds:                          
Managed                            
2023 15.58  16.89    1,662,841   26,463,621   1.79   0.95  1.00    9.14  9.20 
2022 14.27  15.48    2,144,627   31,334,701   2.18   0.95  1.00    (14.82) (14.78)
2021 16.75  18.17    2,292,660   39,207,866   1.35   0.95  1.00    11.39  11.44 
2020 15.03  16.31    2,113,782   32,372,475   1.41   0.95  1.00    4.83  4.88 
2019 14.33  15.56    1,626,922   23,694,565   2.23   0.95  1.00    7.56  16.81 
                             
Blue Chip                            
2023 26.55  26.55    101,197   2,686,593   1.86   1.00  1.00    16.13  16.13 
2022 22.86  22.86    109,614   2,505,930   1.69   1.00  1.00    (9.36) (9.36)
2021 25.22  25.22    147,210   3,712,922   1.51   1.00  1.00    26.51  26.51 
2020 19.94  19.94    161,465   3,219,029   1.71   1.00  1.00    7.60  7.60 
2019 18.53  18.53    185,553   3,437,909   2.08   1.00  1.00    20.17  20.17 
                             
Global                            
2023 55.20  55.20    23,283   1,285,292   0.91   1.00  1.00    21.39  21.39 
2022 45.47  45.47    23,842   1,084,216   0.66   1.00  1.00    (25.48) (25.48)
2021 61.03  61.03    23,846   1,455,288   0.35   1.00  1.00    15.27  15.27 
2020 52.95  52.95    19,249   1,019,121   0.37   1.00  1.00    29.17  29.17 
2019 40.99  40.99    18,072   740,779   1.20   1.00  1.00    33.93  33.93 
                             
Growth                            
2023 206.28  206.28    18,263   3,767,319   0.37   1.00  1.00    37.11  37.11 
2022 150.45  150.45    16,354   2,460,476   0.32   1.00  1.00    (30.63) (30.63)
2021 216.88  216.88    16,796   3,642,720   0.23   1.00  1.00    20.78  20.78 
2020 179.57  179.57    15,002   2,693,952   0.31   1.00  1.00    50.57  50.57 
2019 119.26  119.26    15,458   1,843,547   0.76   1.00  1.00    29.48  29.48 


 

FS-104 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
American Funds, continued:                        
International                          
2023 25.05  25.05    22,553   564,941   1.25   1.00  1.00    14.70  14.70 
2022 21.84  21.84    25,831   564,143   1.75   1.00  1.00    (21.57) (21.57)
2021 27.85  27.85    26,816   746,745   2.39   1.00  1.00    (2.47) (2.47)
2020 28.55  28.55    27,052   772,405   0.66   1.00  1.00    12.84  12.84 
2019 25.30  25.30    29,733   752,357   1.52   1.00  1.00    21.66  21.66 
                             
New World                            
2023 28.67  30.64    24,087   722,029   1.63   0.95  1.00    14.85  14.90 
2022 24.95  26.68    19,594   517,424   1.29   0.95  1.00    (22.87) (22.83)
2021 32.34  34.59    21,364   724,340   0.88   0.95  1.00    3.88  3.93 
2020 31.11  33.29    16,867   558,295   0.07   0.95  1.00    21.96  22.35 
2019 27.21  27.21    14,665   399,055   0.98   1.00  1.00    27.86  27.86 
                             
Growth-Income                          
2023 104.43  104.43    19,857   2,073,703   1.42   1.00  1.00    24.89  24.89 
2022 83.62  83.62    16,845   1,408,572   1.21   1.00  1.00    (17.32) (17.32)
2021 101.14  101.14    19,221   1,943,928   1.22   1.00  1.00    22.86  22.86 
2020 82.31  82.31    17,012   1,400,312   1.29   1.00  1.00    12.42  12.42 
2019 73.22  73.22    24,933   1,825,684   1.73   1.00  1.00    24.89  24.89 
                             
Asset                            
2023 35.59  35.59    94,753   3,372,464   2.20   1.00  1.00    13.14  13.14 
2022 31.46  31.46    99,965   3,144,788   1.96   1.00  1.00    (14.26) (14.26)
2021 36.69  36.69    91,201   3,346,346   1.56   1.00  1.00    13.96  13.96 
2020 32.20  32.20    88,621   2,853,386   1.62   1.00  1.00    11.34  11.34 
2019 28.92  28.92    96,166   2,780,969   2.01   1.00  1.00    20.03  20.03 
                             
Columbia:                            
Strategic                            
2023 5.40  5.40    40,162   216,673   3.81   1.00  1.00    8.12  8.12 
2022 4.99  4.99    34,012   169,710   2.69   1.00  1.00    (12.39) (12.39)
2021 5.70  5.70    37,364   212,811   5.15   1.00  1.00    0.62  0.62 
2020 5.66  5.66    55,869   316,252   3.30   1.00  1.00    5.56  5.56 
2019 5.36  5.36    54,529   292,401   3.76   1.00  1.00    9.12  9.12 
                             
Emerging                            
2023 17.82  17.82    6,484   115,540    -   1.00  1.00    8.11  8.11 
2022 16.48  16.48    6,347   104,618    -   1.00  1.00    (33.74) (33.74)
2021 24.87  24.87    6,948   172,836   0.92   1.00  1.00    (8.39) (8.39)
2020 27.15  27.15    10,329   280,459   0.37   1.00  1.00    31.84  31.84 
2019 20.59  20.59    11,111   228,828   0.14   1.00  1.00    29.97  29.97 


 

FS-105 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
Columbia, continued:                          
International                          
2023 18.21  18.21    12,732   231,844   1.67   1.00  1.00    14.18  14.18 
2022 15.95  15.95    12,715   202,774   0.24   1.00  1.00    (15.75) (15.75)
2021 18.93  18.93    3,164   59,881   1.09   1.00  1.00    8.65  8.65 
2020 17.42  17.42    3,147   54,823   1.36   1.00  1.00    7.74  7.74 
2019 16.17  16.17    2,476   40,037   1.81   1.00  1.00    23.91  23.91 
                             
Smaller-Cap                          
2023 30.84  30.84    8,448   260,560    -   1.00  1.00    11.73  11.73 
2022 27.60  27.60    7,711   212,848    -   1.00  1.00    (15.77) (15.77)
2021 32.77  32.77    8,074   264,605    -   1.00  1.00    29.32  29.32 
2020 25.34  25.34    6,751   171,079    -   1.00  1.00    7.84  7.84 
2019 23.50  23.50    5,229   122,888    -   1.00  1.00    16.28  16.28 
                             
Mid Cap                            
2023 32.99  32.99    25,639   845,694    -   1.00  1.00    8.96  8.96 
2022 30.27  30.27    22,165   670,989    -   1.00  1.00    (10.56) (10.56)
2021 33.85  33.85    19,209   650,167    -   1.00  1.00    30.67  30.67 
2020 25.90  25.90    20,918   541,828    -   1.00  1.00    6.19  6.19 
2019 24.39  24.39    18,618   454,181    -   1.00  1.00    29.95  29.95 
                             
High Yield                            
2023 8.73  8.73    41,609   363,322   5.44   1.00  1.00    10.76  10.76 
2022 7.88  7.88    41,186   324,688   4.87   1.00  1.00    (11.66) (11.66)
2021 8.92  8.92    40,147   358,282   4.99   1.00  1.00    3.75  3.75 
2020 8.60  8.60    41,345   355,643   5.62   1.00  1.00    5.25  5.25 
2019 8.17  8.17    38,651   315,888   5.54   1.00  1.00    15.37  15.37 
                             
Large Core                            
2023 80.03  80.03    9,928   794,548    -   1.00  1.00    22.85  22.85 
2022 65.15  65.15    9,884   643,882    -   1.00  1.00    (19.74) (19.74)
2021 81.17  81.17    11,599   941,464    -   1.00  1.00    31.12  31.12 
2020 61.91  61.91    10,575   654,670    -   1.00  1.00    12.70  12.70 
2019 54.93  54.93    10,788   592,641    -   1.00  1.00    23.23  23.23 
                             
Ivy:                            
Strategy                            
2023 12.44  12.44    558   6,939   2.18   1.00  1.00    12.81  12.81 
2022 11.03  11.03    558   6,152   1.59   1.00  1.00    (15.58) (15.58)
2021 13.06  13.06    558   7,288   1.63   1.00  1.00    9.35  9.35 
2020 11.95  11.95    558   6,665   2.11   1.00  1.00    12.74  12.74 
2019 10.60  10.60    558   5,911   2.19   1.00  1.00    20.57  20.57 


 

FS-106 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
Ivy, continued:                          
Balanced                            
2023 8.92  11.41    173,193   2,271,906   0.75   0.95  1.40    14.43  14.94 
2022 7.76  9.97    123,535   1,347,803   1.12   0.95  1.40    (17.22) (16.88)
2021 12.04  12.34    127,205   1,672,184   0.97   0.95  1.40    14.36  14.87 
2020 10.53  10.75    114,585   1,316,651   1.36   0.95  1.40    12.53  13.03 
2019 9.36  9.51    112,232   1,153,295   1.79   0.95  1.40    20.40  20.94 
                             
Energy                            
2023 5.24  5.24    91,623   479,835   3.61   1.00  1.00    2.99  2.99 
2022 5.09  5.09    83,856   426,425   4.20   1.00  1.00    48.98  48.98 
2021 3.41  3.41    55,996   191,129   1.20   1.00  1.00    40.59  40.59 
2020 2.43  2.43    90,183   218,951   2.21   1.00  1.00    (37.46) (37.46)
2019 3.88  3.88    50,709   196,867    -   1.00  1.00    2.45  2.45 
                             
Small Cap Value                          
2023 30.05  30.05    11,663   350,512   0.20   1.00  1.00    14.52  14.52 
2022 26.24  26.24    12,020   315,430    -   1.00  1.00    (15.65) (15.65)
2021 31.11  31.11    12,861   400,122    -   1.00  1.00    19.58  19.58 
2020 26.02  26.02    15,917   414,116    -   1.00  1.00    5.96  5.96 
2019 24.55  24.55    17,046   418,551    -   1.00  1.00    23.09  23.09 
                             
Science                            
2023 59.56  59.56    31,131   1,854,140    -   1.00  1.00    37.69  37.69 
2022 43.26  43.26    30,138   1,303,660    -   1.00  1.00    (32.52) (32.52)
2021 64.10  64.10    29,169   1,869,720    -   1.00  1.00    14.02  14.02 
2020 56.22  56.22    31,676   1,780,690    -   1.00  1.00    34.02  34.02 
2019 41.95  41.95    34,243   1,436,389    -   1.00  1.00    48.00  48.00 
                             
Mid Cap Growth                          
2023 23.19  23.19    30,901   716,691    -   1.00  1.00    18.43  18.43 
2022 19.58  19.58    29,561   578,913    -   1.00  1.00    (31.48) (31.48)
2021 28.58  28.58    28,243   807,206    -   1.00  1.00    15.20  15.20 
2020 24.81  24.81    32,360   802,851    -   1.00  1.00    47.52  47.52 
2019 16.82  16.82    38,924   654,615    -   1.00  1.00    36.57  36.57 
                             
International                          
2023 21.13  21.13    8,122   171,587   1.54   1.00  1.00    14.48  14.48 
2022 18.45  18.45    8,130   150,038   2.32   1.00  1.00    (15.15) (15.15)
2021 21.75  21.75    8,057   175,232   1.04   1.00  1.00    13.04  13.04 
2020 19.24  19.24    7,641   147,008   2.28   1.00  1.00    6.12  6.12 
2019 18.13  18.13    8,423   152,719   1.57   1.00  1.00    17.52  17.52 


 

FS-107 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
Ivy, continued:                          
Global                            
2023 16.06  16.06    6,349   101,981   0.07   1.00  1.00    18.80  18.80 
2022 13.52  13.52    5,297   71,615   0.77   1.00  1.00    (18.38) (18.38)
2021 16.57  16.57    4,961   82,188   0.06   1.00  1.00    16.69  16.69 
2020 14.20  14.20    5,049   71,669   0.42   1.00  1.00    19.38  19.38 
2019 11.89  11.89    4,547   54,076   0.67   1.00  1.00    24.68  24.68 
                             
High Income                          
2023 4.67  4.67    41,165   192,398   6.38   1.00  1.00    10.65  10.65 
2022 4.22  4.22    46,292   195,545   7.61   1.00  1.00    (11.85) (11.85)
2021 4.79  4.79    63,027   302,016   5.79   1.00  1.00    5.01  5.01 
2020 4.56  4.56    73,469   335,260   7.25   1.00  1.00    4.97  4.97 
2019 4.35  4.35    77,491   336,860   6.07   1.00  1.00    10.09  10.09 
                             
Janus:                            
Flexible                            
2023 13.18  13.18    23,206   305,758   3.60   1.00  1.00    4.25  4.25 
2022 12.64  12.64    26,541   335,433   2.01   1.00  1.00    (14.75) (14.75)
2021 14.83  14.83    40,412   599,138   2.23   1.00  1.00    (2.09) (2.09)
2020 15.14  15.14    55,778   844,634   2.73   1.00  1.00    9.15  9.15 
2019 13.87  13.87    36,414   505,164   2.93   1.00  1.00    8.19  8.19 
                             
Putnam:                            
Health                            
2023 35.49  35.49    7,212   255,972   0.31   1.00  1.00    8.05  8.05 
2022 32.85  32.85    9,187   301,752   0.37   1.00  1.00    (5.62) (5.62)
2021 34.80  34.80    6,317   219,834   1.07   1.00  1.00    18.22  18.22 
2020 29.44  29.44    5,832   171,680   0.48   1.00  1.00    15.12  15.12 
2019 25.57  25.57    5,398   138,051    -   1.00  1.00    29.00  29.00 
                             
Asset                            
2023 26.84  26.84    9,984   267,977   1.50   1.00  1.00    16.32  16.32 
2022 23.07  23.07    10,247   236,441   1.43   1.00  1.00    (16.86) (16.86)
2021 27.75  27.75    6,264   173,842   0.66   1.00  1.00    12.82  12.82 
2020 24.60  24.60    5,724   140,808   1.75   1.00  1.00    11.19  11.19 
2019 22.12  22.12    6,758   149,524   1.34   1.00  1.00    15.97  15.97 

 

 

 

 

 

 

 

 

 

FS-108 
 

5. FINANCIAL HIGHLIGHTS, continued

 

  At December 31   For the Periods Ended December 31
                Inv.            
   Unit         Net Assets    Income    Expense     Total
   Value ($)     Units     ($)    Ratio %    Ratio %    Return %
   Min   Max                 Min   Max     Min   Max 
VanEck:                            
Gold                            
2023 9.85  9.85    23,867   235,103    -   1.00  1.00    9.32  9.32 
2022 9.01  9.01    21,117   190,284    -   1.00  1.00    (14.22) (14.22)
2021 10.50  10.50    47,461   498,542   12.30   1.00  1.00    (14.86) (14.86)
2020 12.34  12.34    81,741   1,008,514   2.85   1.00  1.00    37.25  37.25 
2019 8.99  8.99    40,954   368,155    -   1.00  1.00    37.37  37.37 
                             
Hard Assets                          
2023 24.86  24.86    8,972   223,066   2.66   1.00  1.00    (4.79) (4.79)
2022 26.11  26.11    9,013   235,345   1.55   1.00  1.00    7.05  7.05 
2021 24.39  24.39    13,135   320,397   0.30   1.00  1.00    17.50  17.50 
2020 20.76  20.76    11,263   233,812   0.69   1.00  1.00    17.65  17.65 
2019 17.65  17.65    6,243   110,172    -   1.00  1.00    10.44  10.44 

 

 

 

 

 

 

 

FS-109 
 


6. CHANGES IN UNITS OUTSTANDING

 

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

 

    2023   2022
Fidelity:        
Equity-Income IC        
Units issued   28,167    33,525 
Units redeemed   (41,609)   (47,877)
Net increase(decrease)   (13,442)   (14,352)
         
Equity-Income SC        
Units issued   7,773    3,859 
Units redeemed   (9,288)   (5,700)
Net increase(decrease)   (1,515)   (1,841)
         
Equity-Income SC2        
Units issued   107,597    135,216 
Units redeemed   (119,413)   (148,789)
Net increase(decrease)   (11,816)   (13,573)
         
Growth IC        
Units issued   8,203    8,562 
Units redeemed   (17,276)   (16,302)
Net increase(decrease)   (9,073)   (7,740)
         
Growth SC        
Units issued   1,491    2,265 
Units redeemed   (2,227)   (3,791)
Net increase(decrease)   (736)   (1,526)
         
Growth SC2        
Units issued   28,480    31,658 
Units redeemed   (31,229)   (34,047)
Net increase(decrease)   (2,749)   (2,389)
         
High Income IC        
Units issued   130,508    159,150 
Units redeemed   (137,897)   (175,411)
Net increase(decrease)   (7,389)   (16,261)
         
High Income SC        
Units issued   30,452    36,616 
Units redeemed   (32,991)   (43,285)
Net increase(decrease)   (2,539)   (6,669)
         

 

FS-110 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

 

 

    2023   2022
Fidelity, continued:        
High Income SC2        
Units issued   7,991,514    8,852,172 
Units redeemed   (8,278,972)   (9,268,968)
Net increase(decrease)   (287,458)   (416,796)
         
Overseas IC        
Units issued   28,329    35,474 
Units redeemed   (34,540)   (43,622)
Net increase(decrease)   (6,211)   (8,148)
         
Overseas SC        
Units issued   2,069    2,450 
Units redeemed   (3,433)   (2,871)
Net increase(decrease)   (1,364)   (421)
         
Overseas SC2        
Units issued   168,895    227,623 
Units redeemed   (199,056)   (223,196)
Net increase(decrease)   (30,161)   4,427 
         
Asset Mgr. IC        
Units issued   7,289    7,857 
Units redeemed   (19,764)   (20,175)
Net increase(decrease)   (12,475)   (12,318)
         
Asset Mgr. SC        
Units issued   3,047    3,854 
Units redeemed   (3,917)   (7,615)
Net increase(decrease)   (870)   (3,761)
         
Asset Mgr. SC2        
Units issued   9,076    10,606 
Units redeemed   (14,107)   (17,991)
Net increase(decrease)   (5,031)   (7,385)
         
Inv. Bond IC        
Units issued   179,319    212,754 
Units redeemed   (196,777)   (249,750)
Net increase(decrease)   (17,458)   (36,996)
         

 

FS-111 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

 

 

    2023   2022
Fidelity, continued:        
Inv. Bond SC2        
Units issued   10,096,538    10,990,591 
Units redeemed   (10,238,608)   (11,437,620)
Net increase(decrease)   (142,070)   (447,029)
         
Contrafund IC        
Units issued   23,453    27,076 
Units redeemed   (37,861)   (38,420)
Net increase(decrease)   (14,408)   (11,344)
         
Contrafund SC        
Units issued   4,143    4,177 
Units redeemed   (7,855)   (9,504)
Net increase(decrease)   (3,712)   (5,327)
         
Contrafund SC2        
Units issued   124,129    143,080 
Units redeemed   (147,781)   (160,515)
Net increase(decrease)   (23,652)   (17,435)
         
Asset Mgr. Gr. IC        
Units issued   5,717    5,630 
Units redeemed   (10,274)   (7,311)
Net increase(decrease)   (4,557)   (1,681)
         
Asset Mgr. Gr. SC        
Units issued   735    722 
Units redeemed   (749)   (739)
Net increase(decrease)   (14)   (17)
         
Asset Mgr. Gr. SC2        
Units issued   651    1,987 
Units redeemed   (2,833)   (4,906)
Net increase(decrease)   (2,182)   (2,919)
         
Mid Cap SC2        
Units issued   33,832    40,134 
Units redeemed   (36,755)   (48,678)
Net increase(decrease)   (2,923)   (8,544)
         

 

FS-112 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

 

 

    2023   2022
Fidelity, continued:        
Money Market        
Units issued   15,561,380    22,252,772 
Units redeemed   (17,529,540)   (19,164,452)
Net increase(decrease)   (1,968,160)   3,088,320 
         
Money Market SC2        
Units issued   554,178    4,722,768 
Units redeemed   (1,277,910)   (2,891,367)
Net increase(decrease)   (723,732)   1,831,401 
         
Index 500 SC2        
Units issued   3,737    3,739 
Units redeemed   (3,933)   (6,168)
Net increase(decrease)   (196)   (2,429)
         
Strategic SC2        
Units issued   5,103    10,730 
Units redeemed   (7,642)   (15,144)
Net increase(decrease)   (2,539)   (4,414)
         
Alger:        
Balanced        
Units issued   64,137    73,790 
Units redeemed   (78,443)   (93,942)
Net increase(decrease)   (14,306)   (20,152)
         
MFS:        
Utilities        
Units issued   106,044    127,908 
Units redeemed   (121,453)   (152,303)
Net increase(decrease)   (15,409)   (24,395)
         
New Discovery        
Units issued   61,621    68,685 
Units redeemed   (69,839)   (77,885)
Net increase(decrease)   (8,218)   (9,200)
         
Total Return        
Units issued   52,841    91,073 
Units redeemed   (69,192)   (114,825)
Net increase(decrease)   (16,351)   (23,752)
         

 

FS-113 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

 

 

    2023   2022
MFS, continued:        
Growth SC        
Units issued   2,861    2,022 
Units redeemed   (2,251)   (4,130)
Net increase(decrease)   610    (2,108)
         
New Discovery SC        
Units issued   3,203    4,147 
Units redeemed   (3,756)   (7,884)
Net increase(decrease)   (553)   (3,737)
         
Utilities SC        
Units issued   42,833    25,603 
Units redeemed   (19,957)   (22,777)
Net increase(decrease)   22,876    2,826 
         
Strategic         
Units issued   282,116    246,611 
Units redeemed   (262,184)   (298,356)
Net increase(decrease)   19,932    (51,745)
         
Research        
Units issued   4,370,879    5,090,440 
Units redeemed   (4,534,153)   (5,173,390)
Net increase(decrease)   (163,274)   (82,950)
         
Blended Core SC        
Units issued   1,362    1,225 
Units redeemed   (440)   (1,369)
Net increase(decrease)   922    (144)
         
Corporate SC        
Units issued   58,663    17,986 
Units redeemed   (7,992)   (25,940)
Net increase(decrease)   50,671    (7,954)
         
Government SC        
Units issued   296    192 
Units redeemed   (800)   (77,627)
Net increase(decrease)   (504)   (77,435)
         

 

FS-114 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

 

 

    2023   2022
MFS, continued:        
Growth Allocation SC        
Units issued   3,543    1,076 
Units redeemed   (1,423)   (27,165)
Net increase(decrease)   2,120    (26,089)
         
Moderate SC        
Units issued   3,096    16,324 
Units redeemed   (1,835)   (8,526)
Net increase(decrease)   1,261    7,798 
         
Conservative SC        
Units issued   726    11,148 
Units redeemed   (1,115)   (5,119)
Net increase(decrease)   (389)   6,029 
         
Blended Small Cap SC        
Units issued   5,621    12,288 
Units redeemed   (5,443)   (7,003)
Net increase(decrease)   178    5,285 
         
Global Real Estate IC        
Units issued   4    8,815 
Units redeemed   (1,752)   (7,693)
Net increase(decrease)   (1,748)   1,122 
         
Global Real Estate SC        
Units issued   5,093    1,417 
Units redeemed   (372)   (464)
Net increase(decrease)   4,721    953 
         
Van Kampen:        
Emerging Markets        
Units issued   2,678,190    2,921,777 
Units redeemed   (2,769,308)   (2,917,153)
Net increase(decrease)   (91,118)   4,624 
         
Intl. Magnum        
Units issued   78,597    85,517 
Units redeemed   (90,070)   (92,871)
Net increase(decrease)   (11,473)   (7,354)
         

 

FS-115 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

 

 

    2023   2022
Van Kampen, continued:        
U.S. Real Estate        
Units issued   2,963,860    3,043,942 
Units redeemed   (3,029,701)   (3,094,334)
Net increase(decrease)   (65,841)   (50,392)
         
Global II        
Units issued   1,997    3,552 
Units redeemed   (2,146)   (2,374)
Net increase(decrease)   (149)   1,178 
         
Calvert:        
Balanced        
Units issued   185,733    174,524 
Units redeemed   (273,218)   (315,212)
Net increase(decrease)   (87,485)   (140,688)
         
Mid Cap        
Units issued                          -                          -
Units redeemed   (1,019)   (1,112)
Net increase(decrease)   (1,019)   (1,112)
         
Balanced F        
Units issued   383,585    63,406 
Units redeemed   (94,100)   (52,384)
Net increase(decrease)   289,485    11,022 
         
American Century:        
Income & Growth        
Units issued   5,233,360    5,734,935 
Units redeemed   (5,372,369)   (6,023,970)
Net increase(decrease)   (139,009)   (289,035)
         
Mid Cap Value        
Units issued   460,584    532,730 
Units redeemed   (471,257)   (577,282)
Net increase(decrease)   (10,673)   (44,552)
         
Inc. & Growth II        
Units issued   84,254    51,384 
Units redeemed   (58,692)   (47,981)
Net increase(decrease)   25,562    3,403 
         

 

FS-116 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

 

 

    2023   2022
AIM:        
Intl. Growth        
Units issued   390,988    464,385 
Units redeemed   (416,772)   (470,190)
Net increase(decrease)   (25,784)   (5,805)
         
Global        
Units issued   95,005    99,560 
Units redeemed   (96,547)   (94,546)
Net increase(decrease)   (1,542)   5,014 
         
Global Value        
Units issued   97,549    117,577 
Units redeemed   (112,055)   (123,043)
Net increase(decrease)   (14,506)   (5,466)
         
Discovery Mid Cap        
Units issued   21,254    22,125 
Units redeemed   (24,616)   (24,948)
Net increase(decrease)   (3,362)   (2,823)
         
Diversified        
Units issued   19,710    19,731 
Units redeemed   (18,751)   (20,423)
Net increase(decrease)   959    (692)
         
Value        
Units issued   2,642    3,416 
Units redeemed   (2,364)   (3,024)
Net increase(decrease)   278    392 
         
Real Estate        
Units issued   71,485    17,945 
Units redeemed   (14,427)   (11,917)
Net increase(decrease)   57,058    6,028 
         
Summit:        
S&P MidCap        
Units issued   1,920,464    2,200,859 
Units redeemed   (2,029,097)   (2,341,667)
Net increase(decrease)   (108,633)   (140,808)
         

 

FS-117 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

 

 

    2023   2022
Summit, continued:        
Russell Small Cap        
Units issued   1,858,480    2,029,063 
Units redeemed   (1,922,336)   (2,122,174)
Net increase(decrease)   (63,856)   (93,111)
         
Nasdaq-100 Index        
Units issued   2,929,158    3,501,615 
Units redeemed   (3,201,928)   (3,543,681)
Net increase(decrease)   (272,770)   (42,066)
         
EAFE Intl.        
Units issued   1,234,337    1,489,663 
Units redeemed   (1,293,525)   (1,525,182)
Net increase(decrease)   (59,188)   (35,519)
         
S&P 500        
Units issued   889,993    1,042,315 
Units redeemed   (958,097)   (1,098,530)
Net increase(decrease)   (68,104)   (56,215)
         
Barclays        
Units issued   4,042,143    4,402,540 
Units redeemed   (4,108,094)   (4,585,711)
Net increase(decrease)   (65,951)   (183,171)
         
Growth        
Units issued   186,406    300,344 
Units redeemed   (1,077,128)   (756,917)
Net increase(decrease)   (890,722)   (456,573)
         
Mod. Growth        
Units issued   1,044,234    1,191,305 
Units redeemed   (1,424,921)   (1,490,909)
Net increase(decrease)   (380,687)   (299,604)
         
Moderate        
Units issued   8,659,290    9,700,360 
Units redeemed   (9,116,654)   (10,248,559)
Net increase(decrease)   (457,364)   (548,199)
         

 

FS-118 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

 

 

    2023   2022
Third Avenue:        
Value        
Units issued   129,058    203,421 
Units redeemed   (156,175)   (226,794)
Net increase(decrease)   (27,117)   (23,373)
         
Dreyfus:        
MidCap        
Units issued   36,694    43,875 
Units redeemed   (41,904)   (50,169)
Net increase(decrease)   (5,210)   (6,294)
         
Small Cap        
Units issued   3,614    9,693 
Units redeemed   (3,414)   (13,717)
Net increase(decrease)   200    (4,024)
         
Scudder:        
Small Mid Value        
Units issued   54,139    67,683 
Units redeemed   (58,443)   (77,649)
Net increase(decrease)   (4,304)   (9,966)
         
Thematic        
Units issued   24,120    30,391 
Units redeemed   (35,262)   (33,905)
Net increase(decrease)   (11,142)   (3,514)
         
Alternative        
Units issued   2,619    2,518 
Units redeemed   (3,498)   (2,522)
Net increase(decrease)   (879)   (4)
         
Neuberger Berman:        
Regency        
Units issued   19,917    33,452 
Units redeemed   (22,375)   (37,505)
Net increase(decrease)   (2,458)   (4,053)
         
Intrinsic        
Units issued   3,769    2,005 
Units redeemed   (3,221)   (4,865)
Net increase(decrease)   548    (2,860)
         

 

FS-119 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

 

 

    2023   2022
Neuberger Berman, continued:        
Growth        
Units issued   610    2,591 
Units redeemed   (2,807)   (2,421)
Net increase(decrease)   (2,197)   170 
         
T. Rowe:        
Blue Chip        
Units issued   2,659,191    3,088,828 
Units redeemed   (2,907,887)   (3,019,471)
Net increase(decrease)   (248,696)   69,357 
         
Pimco:        
Total Return        
Units issued   395,225    405,091 
Units redeemed   (402,347)   (517,133)
Net increase(decrease)   (7,122)   (112,042)
         
Low Duration        
Units issued   2,020,659    2,412,617 
Units redeemed   (2,106,327)   (2,575,855)
Net increase(decrease)   (85,668)   (163,238)
         
Short Term        
Units issued   59,653    368,115 
Units redeemed   (88,708)   (277,179)
Net increase(decrease)   (29,055)   90,936 
         
Emerging        
Units issued   972    3,971 
Units redeemed   (2,122)   (5,314)
Net increase(decrease)   (1,150)   (1,343)
         
Low Duration Adv.        
Units issued   24,283    24,123 
Units redeemed   (21,867)   (62,139)
Net increase(decrease)   2,416    (38,016)
         
Real Return        
Units issued   149,556    142,708 
Units redeemed   (52,617)   (164,265)
Net increase(decrease)   96,939    (21,557)
         

 

FS-120 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

 

 

    2023   2022
Pimco, continued:        
Commodity        
Units issued   1,103    4,832 
Units redeemed   (5,964)   (6,106)
Net increase(decrease)   (4,861)   (1,274)
         
Ibbotson:        
Balanced        
Units issued   9,032    5,807 
Units redeemed   (9,880)   (9,483)
Net increase(decrease)   (848)   (3,676)
         
Growth        
Units issued   8,280    5,223 
Units redeemed   (6,197)   (6,010)
Net increase(decrease)   2,083    (787)
         
Income        
Units issued   14,141    17,765 
Units redeemed   (23,643)   (20,628)
Net increase(decrease)   (9,502)   (2,863)
         
Franklin Templeton:        
Global Bond        
Units issued   6,254,361    6,845,306 
Units redeemed   (6,322,931)   (7,192,539)
Net increase(decrease)   (68,570)   (347,233)
         
Income        
Units issued   102,704    86,571 
Units redeemed   (64,632)   (74,769)
Net increase(decrease)   38,072    11,802 
         
Global Discovery        
Units issued   2,587    1,319 
Units redeemed   (2,079)   (1,100)
Net increase(decrease)   508    219 
         
Small Cap        
Units issued   513    1,696 
Units redeemed   (1,756)   (4,786)
Net increase(decrease)   (1,243)   (3,090)
         

 

FS-121 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

 

 

    2023   2022
Franklin Templeton, continued:        
Foreign        
Units issued   42,963    16,892 
Units redeemed   (6,940)   (24,668)
Net increase(decrease)   36,023    (7,776)
         
AllianceBernstein:        
Growth and Income        
Units issued   8,742    9,264 
Units redeemed   (8,313)   (8,959)
Net increase(decrease)   429    305 
         
American Funds:        
Managed        
Units issued   505,727    625,136 
Units redeemed   (987,513)   (773,169)
Net increase(decrease)   (481,786)   (148,033)
         
Blue Chip        
Units issued   23,827    31,624 
Units redeemed   (32,244)   (69,220)
Net increase(decrease)   (8,417)   (37,596)
         
Global         
Units issued   4,510    10,288 
Units redeemed   (5,069)   (10,292)
Net increase(decrease)   (559)   (4)
         
Growth        
Units issued   4,808    2,692 
Units redeemed   (2,899)   (3,134)
Net increase(decrease)   1,909    (442)
         
International        
Units issued   3,109    5,869 
Units redeemed   (6,387)   (6,854)
Net increase(decrease)   (3,278)   (985)
         
New World        
Units issued   17,578    15,371 
Units redeemed   (13,085)   (17,141)
Net increase(decrease)   4,493    (1,770)
         

 

FS-122 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

 

 

    2023   2022
American Funds, continued:        
Growth-Income        
Units issued   7,718    6,456 
Units redeemed   (4,706)   (8,832)
Net increase(decrease)   3,012    (2,376)
         
Asset        
Units issued   13,804    21,566 
Units redeemed   (19,016)   (12,802)
Net increase(decrease)   (5,212)   8,764 
         
Columbia:        
Strategic        
Units issued   27,747    20,537 
Units redeemed   (21,597)   (23,889)
Net increase(decrease)   6,150    (3,352)
         
Emerging        
Units issued   265    1,131 
Units redeemed   (128)   (1,732)
Net increase(decrease)   137    (601)
         
International        
Units issued   27    9,562 
Units redeemed   (10)   (11)
Net increase(decrease)   17    9,551 
         
Smaller-Cap        
Units issued   1,871    227 
Units redeemed   (1,134)   (590)
Net increase(decrease)   737    (363)
         
Mid Cap        
Units issued   10,048    8,873 
Units redeemed   (6,574)   (5,917)
Net increase(decrease)   3,474    2,956 
         
High Yield        
Units issued   14,205    25,087 
Units redeemed   (13,782)   (24,048)
Net increase(decrease)   423    1,039 
         

 

FS-123 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

 

 

    2023   2022
Columbia, continued:        
Large Core        
Units issued   4,313    4,512 
Units redeemed   (4,269)   (6,227)
Net increase(decrease)   44    (1,715)
         
Ivy:        
Strategy        
Units issued                          -                          -
Units redeemed                          -                          -
Net increase(decrease)                          -                          -
         
Balanced        
Units issued   222,095    139,681 
Units redeemed   (172,437)   (143,351)
Net increase(decrease)   49,658    (3,670)
         
Energy        
Units issued   58,333    116,988 
Units redeemed   (50,566)   (89,128)
Net increase(decrease)   7,767    27,860 
         
Small Cap Value        
Units issued   1,765    2,747 
Units redeemed   (2,122)   (3,588)
Net increase(decrease)   (357)   (841)
         
Science        
Units issued   10,014    11,721 
Units redeemed   (9,021)   (10,752)
Net increase(decrease)   993    969 
         
Mid Cap Growth        
Units issued   5,607    7,202 
Units redeemed   (4,267)   (5,884)
Net increase(decrease)   1,340    1,318 
         
International         
Units issued   2,941    2,838 
Units redeemed   (2,949)   (2,765)
Net increase(decrease)   (8)   73 
         

 

FS-124 
 

6. CHANGES IN UNITS OUTSTANDING, continued

 

 

 

    2023   2022
Ivy, continued:        
Global        
Units issued   8,120    7,209 
Units redeemed   (7,068)   (6,873)
Net increase(decrease)   1,052    336 
         
High Income        
Units issued   229    4,998 
Units redeemed   (5,356)   (21,733)
Net increase(decrease)   (5,127)   (16,735)
         
Janus:        
Flexible        
Units issued   10,230    19,447 
Units redeemed   (13,565)   (33,318)
Net increase(decrease)   (3,335)   (13,871)
         
Putnam:        
Health         
Units issued   1,484    5,196 
Units redeemed   (3,459)   (2,326)
Net increase(decrease)   (1,975)   2,870 
         
Asset        
Units issued   20    4,129 
Units redeemed   (283)   (146)
Net increase(decrease)   (263)   3,983 
         
Van Eck:        
Gold        
Units issued   13,811    119,936 
Units redeemed   (11,061)   (146,280)
Net increase(decrease)   2,750    (26,344)
         
Hard Assets        
Units issued   2,693    6,438 
Units redeemed   (2,734)   (10,560)
Net increase(decrease)   (41)   (4,122)

 

FS-125 
 

 

 

 

 

 

 

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.

 

 45 
 

 

 

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

 

 

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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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