CARILLON LIFE ACCOUNT
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 Carillon Life Account
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 the Carillon Life Account (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 2006.
This page left intentionally blank.
FS-3 |
The accompanying notes are an integral part of these financial statements.
FS-4 |
CARILLON LIFE ACCOUNT | ||||||||
STATEMENTS OF NET ASSETS | ||||||||
DECEMBER 31, 2023 | ||||||||
ASSETS, continued | ||||||||
INVESTMENTS AT FAIR VALUE: | ||||||||
AIM Variable Insurance Funds (AIM): | ||||||||
Invesco V.I. American Value Fund Portfolio, Series I (American Value) - | ||||||||
14,168.620 shares at $13.98 per share (cost $235,622) | $ | 198,077 | ||||||
Invesco V.I. American Franchise Fund Portfolio, Series I (American Franchise) - | ||||||||
101,310.135 shares at $58.96 per share (cost $5,251,905) | 5,973,246 | |||||||
Invesco V.I. EQV International Equity Fund Portfolio, Series I (Intl Growth) - | ||||||||
39,638.378 shares at $34.09 per share (cost $1,346,258) | 1,351,272 | |||||||
Invesco V.I. Global Real Estate Fund Portfolio, Series I (Global) - | ||||||||
9,926.671 shares at $13.98 per share (cost $155,753) | 138,774 | |||||||
Invesco V.I. Small Cap Equity Fund Portfolio, Series I (Small Cap) - | ||||||||
355.447 shares at $17.20 per share (cost $6,184) | 6,114 | |||||||
Invesco V.I. Equity and Income Fund Portfolio, Series I (Equity & Income) - | ||||||||
1,279.182 shares at $16.48 per share (cost $22,089) | 21,081 | |||||||
Invesco V.I. Capital Appreciation Fund Portfolio, Series I (Cap App) - | ||||||||
7,361.180 shares at $47.07 per share (cost $347,349) | 346,491 | |||||||
Invesco V.I. Global Fund Portfolio, Series I (Global Securities) - | ||||||||
177,324.269 shares at $36.56 per share (cost $6,269,909) | 6,482,975 | |||||||
Invesco V.I. Main Street Fund(R) Portfolio, Series I (Growth & Income) - | ||||||||
222,027.957 shares at $18.22 per share (cost $4,664,960) | 4,045,349 | |||||||
Morgan Stanley Variable Insurance Fund, Inc. (Van Kampen): | ||||||||
Morgan Stanley VIF U.S. Real Estate Portfolio, Class I (U.S. Real Estate) - | ||||||||
197,845.925 shares at $14.54 per share (cost $3,314,369) | 2,876,680 | |||||||
Morgan Stanley VIF Emerging Markets Equity Portfolio, Class I (Emerging Markets) - | ||||||||
135,796.640 shares at $12.90 per share (cost $1,942,831) | 1,751,777 | |||||||
Neuberger Berman Advisers Management Trust (Neuberger Berman): | ||||||||
Neuberger Berman AMT Mid Cap Intrinsic Value Portfolio, Class I (Regency) - | ||||||||
11,403.301 shares at $15.76 per share (cost $176,096) | 179,716 | |||||||
Neuberger Berman AMT Sustainable Equity Portfolio, Class I (Equity) - | ||||||||
72,623.718 shares at $33.35 per share (cost $1,931,068) | 2,422,001 | |||||||
MFS(R) Variable Insurance Trust (MFS): | ||||||||
MFS(R) Growth Series Portfolio, Initial Class (Growth) - | ||||||||
152,905.210 shares at $60.29 per share (cost $6,419,699) | 9,218,656 | |||||||
MFS(R) Investors Trust Series Portfolio, Initial Class (Investor Trust) - | ||||||||
174,715.660 shares at $35.99 per share (cost $4,548,121) | 6,288,017 | |||||||
MFS(R) New Discovery Series Portfolio, Initial Class (New Discovery) - | ||||||||
277,726.671 shares at $12.94 per share (cost $4,686,176) | 3,593,783 | |||||||
MFS(R) Total Return Series Portfolio, Initial Class (Total Return) - | ||||||||
164,191.866 shares at $23.26 per share (cost $3,600,565) | 3,819,103 |
The accompanying notes are an integral part of these financial statements.
FS-5 |
CARILLON LIFE ACCOUNT | ||||||||
STATEMENTS OF NET ASSETS | ||||||||
DECEMBER 31, 2023 | ||||||||
ASSETS, continued | ||||||||
INVESTMENTS AT FAIR VALUE: | ||||||||
MFS(R) Variable Insurance Trust (MFS), continued: | ||||||||
MFS(R) Utilities Series Portfolio, Initial Class (Utilities) - | ||||||||
7,245.702 shares at $32.25 per share (cost $243,529) | $ | 233,674 | ||||||
MFS(R) Value Series Portfolio, Initial Class (Value) - | ||||||||
43.235 shares at $21.27 per share (cost $845) | 920 | |||||||
MFS(R) Variable Insurance Trust III (MFS): | ||||||||
MFS(R) Global Real Estate Portfolio, Initial Class (Global Real Estate) - | ||||||||
0.000 shares at $13.08 per share (cost $0) | - | |||||||
MFS(R) Variable Insurance Trust II (MFS): | ||||||||
MFS(R) High Yield Portfolio, Initial Class (High Yield) - | ||||||||
364,956.968 shares at $5.00 per share (cost $2,058,126) | 1,824,785 | |||||||
MFS(R) Research International Portfolio, Initial Class (Research) - | ||||||||
107,924.379 shares at $16.88 per share (cost $1,710,287) | 1,821,764 | |||||||
Columbia Funds Variable Series Trust II (Seligman): | ||||||||
Columbia Variable Portfolio - Seligman Global Technology | ||||||||
Fund Portfolio, Class 2 (Global Tech) - | ||||||||
91,206.525 shares at $24.18 per share (cost $2,014,902) | 2,205,373 | |||||||
Columbia Variable Portfolio - Select Small Cap Value | ||||||||
Fund Portfolio, Class 2 (Smaller Value) - | ||||||||
105,127.449 shares at $33.38 per share (cost $1,669,218) | 3,509,155 | |||||||
Calvert Variable Products, Inc. (Summit): | ||||||||
Calvert VP EAFE International Index Portfolio, Class I (EAFE Intl.) - | ||||||||
52,723.831 shares at $95.39 per share (cost $4,442,141) | 5,029,326 | |||||||
Calvert VP Investment Grade Bond Index Portfolio, Class I (Barclays) - | ||||||||
117,850.088 shares at $48.44 per share (cost $6,391,009) | 5,708,658 | |||||||
Calvert VP S&P 500 Index Portfolio (S&P 500) - | ||||||||
308,315.838 shares at $172.99 per share (cost $38,303,876) | 53,335,557 | |||||||
Calvert VP Nasdaq 100 Index Portfolio, Class I (Nasdaq 100) - | ||||||||
81,136.064 shares at $143.17 per share (cost $5,712,221) | 11,616,251 | |||||||
Calvert VP Russell 2000 Small Cap Index Portfolio, Class I (Russell) - | ||||||||
104,955.358 shares at $79.76 per share (cost $7,904,819) | 8,371,239 | |||||||
Calvert VP S&P MidCap 400 Index Portfolio, Class I (Midcap 400) - | ||||||||
107,964.776 shares at $119.60 per share (cost $10,052,990) | 12,912,587 | |||||||
Calvert VP Volatility Managed Moderate Portfolio, Class F (Moderate) - | ||||||||
39,909.735 shares at $17.73 per share (cost $688,673) | 707,599 | |||||||
Calvert VP Volatility Managed Moderate Growth Portfolio, Class F (Mod. Growth) - | ||||||||
55,512.367 shares at $19.28 per share (cost $997,050) | 1,070,278 | |||||||
Calvert Variable Series, Inc. (Calvert): | ||||||||
Calvert VP SRI Balanced Portfolio, Class I (Balanced) - | ||||||||
355,781.402 shares at $2.37 per share (cost $741,995) | 843,202 |
The accompanying notes are an integral part of these financial statements.
FS-6 |
CARILLON LIFE ACCOUNT | ||||||||
STATEMENTS OF NET ASSETS | ||||||||
DECEMBER 31, 2023 | ||||||||
ASSETS, continued | ||||||||
INVESTMENTS AT FAIR VALUE: | ||||||||
Fidelity(R) Variable Insurance Products (Fidelity): | ||||||||
Fidelity(R) VIP Contrafund(SM) Portfolio, Initial Class (Contrafund IC) - | ||||||||
52,623.809 shares at $48.63 per share (cost $2,016,903) | $ | 2,559,095 | ||||||
Fidelity(R) VIP Equity-Income Portfolio(SM), Initial Class (Equity Inc. IC) - | ||||||||
20,482.656 shares at $24.85 per share (cost $494,091) | 508,994 | |||||||
Fidelity(R) VIP High Income Portfolio, Initial Class (High Inc. IC) - | ||||||||
399,127.869 shares at $4.60 per share (cost $2,099,375) | 1,835,988 | |||||||
Fidelity(R) VIP Investment Grade Bond Portfolio, Initial Class (Bond IC) - | ||||||||
171,257.685 shares at $11.17 per share (cost $2,122,656) | 1,912,948 | |||||||
Fidelity(R) VIP Mid Cap Portfolio, Initial Class (Mid Cap IC) - | ||||||||
15,808.973 shares at $36.44 per share (cost $530,159) | 576,079 | |||||||
Fidelity(R) VIP Overseas Portfolio, Initial Class (Overseas IC) - | ||||||||
0.000 shares at $25.82 per share (cost $0) | - | |||||||
Fidelity(R) VIP Strategic Income Portfolio, Initial Class (Strategic IC) - | ||||||||
0.000 shares at $10.48 per share (cost $0) | - | |||||||
Fidelity(R) VIP Government Money Market Portfolio, Initial Class (Money Market) - | ||||||||
19,101.630 shares at $1.00 per share (cost $19,102) | 19,102 | |||||||
Third Avenue Variable Series Trust (Third Avenue): | ||||||||
Third Avenue Value Portfolio (Value) - | ||||||||
30,973.309 shares at $23.27 per share (cost $514,582) | 720,749 | |||||||
T. Rowe Price Equity Series, Inc. (T. Rowe): | ||||||||
T. Rowe Price Blue Chip Growth Portfolio-II (Blue Chip) - | ||||||||
86,947.843 shares at $43.54 per share (cost $2,546,877) | 3,785,709 | |||||||
T. Rowe Price Equity Income Portfolio-II (Equity Income) - | ||||||||
0.000 shares at $27.59 per share (cost $0) | - | |||||||
PIMCO Variable Insurance Trust (Pimco): | ||||||||
PIMCO Total Return Portfolio, Administrative Class (Total Return) - | ||||||||
70,605.636 shares at $9.18 per share (cost $743,808) | 648,160 | |||||||
PIMCO Low Duration Portfolio, Administrative Class (Low Duration) - | ||||||||
14,745.470 shares at $9.60 per share (cost $147,245) | 141,556 | |||||||
PIMCO Real Return Portfolio, Advisor Class (Real Return) - | ||||||||
2,976.632 shares at $11.57 per share (cost $37,485) | 34,440 | |||||||
Delaware Ivy Variable Insurance Portfolios (Ivy): | ||||||||
Delaware Ivy VIP Science and Technology Portfolio, Class II (Science) - | ||||||||
16.381 shares at $22.9700 per share (cost $401) | 376 | |||||||
Delaware Ivy VIP Balanced Portfolio, Class II (Balanced) - | ||||||||
3,285.305 shares at $5.4000 per share (cost $16,766) | 17,741 | |||||||
ALPS Variable Investment Trust (Ibbotson): | ||||||||
Morningstar Growth ETF Asset Allocation Portfolio, Class II (Growth) - | ||||||||
82,320.649 shares at $11.34 per share (cost $890,382) | 933,516 |
The accompanying notes are an integral part of these financial statements.
FS-7 |
CARILLON LIFE ACCOUNT | ||||||||
STATEMENTS OF NET ASSETS | ||||||||
DECEMBER 31, 2023 | ||||||||
ASSETS, continued | ||||||||
INVESTMENTS AT FAIR VALUE: | ||||||||
ALPS Variable Investment Trust (Ibbotson), continued: | ||||||||
Morningstar Income and Growth ETF Asset Allocation Portfolio, Class II (Income) - | ||||||||
3,991.180 shares at $9.85 per share (cost $42,536) | $ | 39,313 | ||||||
Morningstar Balanced ETF Asset Allocation Portfolio, Class II (Balanced) - | ||||||||
19,773.790 shares at $10.39 per share (cost $204,709) | 205,450 | |||||||
American Funds Insurance Series(R) (American Funds): | ||||||||
American Funds(R) IS New World Fund(R) Portfolio, Class 2 (IS New World) - | ||||||||
0.000 shares at $25.17 per share (cost $0) | - | |||||||
NET ASSETS REPRESENTING EQUITY OF POLICYOWNERS | $ | 209,400,391 | ||||||
The accompanying notes are an integral part of these financial statements.
FS-8 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
Alger | |||||||
Capital App | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | - | |||||
Mortality and expense risk charge | (6,910) | ||||||
Net investment income(loss) | (6,910) | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | - | ||||||
Net realized gain(loss) on sale of fund shares | (51,352) | ||||||
Net realized gain(loss) | (51,352) | ||||||
Change in unrealized appreciation/depreciation | 1,036,763 | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 978,501 | |||||
Capital App | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | (6,910) | $ | (6,979) | |||
Net realized gain(loss) | (51,352) | 172,097 | |||||
Net change in unrealized appreciation/depreciation | 1,036,763 | (1,537,909) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 978,501 | (1,372,791) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 106,558 | 119,323 | |||||
Subaccounts transfers (including fixed account), net | 169,793 | (7,030) | |||||
Transfers for policyowner benefits and terminations | (311,719) | (122,184) | |||||
Policyowner maintenance charges | (60,168) | (62,263) | |||||
Net increase(decrease) from policyowner transactions | (95,536) | (72,154) | |||||
Total increase(decrease) in net assets | 882,965 | (1,444,945) | |||||
Net assets at beginning of period | 2,304,860 | 3,749,805 | |||||
Net assets at end of period | $ | 3,187,825 | $ | 2,304,860 | |||
The accompanying notes are an integral part of these financial statements. |
FS-9 |
Alger | American Century | |||||||||||||||
Income & | ||||||||||||||||
Mid Cap | Balanced | Growth | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | - | $ | - | $ | 46,647 | |||||||||||
(8,184) | - | (7,733) | ||||||||||||||
(8,184) | - | 38,914 | ||||||||||||||
- | - | - | ||||||||||||||
(103,234) | - | (48,724) | ||||||||||||||
(103,234) | - | (48,724) | ||||||||||||||
788,756 | - | 260,623 | ||||||||||||||
$ | 677,338 | $ | - | $ | 250,813 | |||||||||||
Mid Cap | Balanced | Income & Growth | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | (8,184) | $ | (8,624) | $ | - | $ | - | $ | 38,914 | $ | 48,105 | |||||
(103,234) | 3,889 | - | - | (48,724) | 781,955 | |||||||||||
788,756 | (1,746,415) | - | - | 260,623 | (1,273,816) | |||||||||||
677,338 | (1,751,150) | - | - | 250,813 | (443,756) | |||||||||||
137,670 | 143,140 | - | - | 119,450 | 131,620 | |||||||||||
(62,936) | (118,907) | - | - | 70,036 | (294,766) | |||||||||||
(185,574) | (152,153) | - | - | (133,196) | (222,489) | |||||||||||
(70,482) | (75,281) | - | - | (99,234) | (97,584) | |||||||||||
(181,322) | (203,201) | - | - | (42,944) | (483,219) | |||||||||||
496,016 | (1,954,351) | - | - | 207,869 | (926,975) | |||||||||||
3,009,589 | 4,963,940 | - | - | 2,966,342 | 3,893,317 | |||||||||||
$ | 3,505,605 | $ | 3,009,589 | $ | - | $ | - | $ | 3,174,211 | $ | 2,966,342 | |||||
FS-10 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
American Century | |||||||
Value | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | 150,368 | |||||
Mortality and expense risk charge | (15,932) | ||||||
Net investment income(loss) | 134,436 | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | 502,452 | ||||||
Net realized gain(loss) on sale of fund shares | 126,362 | ||||||
Net realized gain(loss) | 628,814 | ||||||
Change in unrealized appreciation/depreciation | (231,809) | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 531,441 | |||||
Value | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | 134,436 | $ | 124,635 | |||
Net realized gain(loss) | 628,814 | 659,906 | |||||
Net change in unrealized appreciation/depreciation | (231,809) | (810,800) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 531,441 | (26,259) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 143,779 | 173,999 | |||||
Subaccounts transfers (including fixed account), net | (193,363) | 1,488,906 | |||||
Transfers for policyowner benefits and terminations | (455,737) | (205,005) | |||||
Policyowner maintenance charges | (144,330) | (155,977) | |||||
Net increase(decrease) from policyowner transactions | (649,651) | 1,301,923 | |||||
Total increase(decrease) in net assets | (118,210) | 1,275,664 | |||||
Net assets at beginning of period | 6,653,475 | 5,377,811 | |||||
Net assets at end of period | $ | 6,535,265 | $ | 6,653,475 | |||
The accompanying notes are an integral part of these financial statements. |
FS-11 |
American Century | Scudder | |||||||||||||||
Mid Cap | ||||||||||||||||
Value | International | Capital Growth | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | 35,471 | $ | 9,547 | $ | 5,565 | |||||||||||
(3,966) | (1,708) | (18,217) | ||||||||||||||
31,505 | 7,839 | (12,652) | ||||||||||||||
166,505 | - | 306,328 | ||||||||||||||
(6,031) | 725 | 103,786 | ||||||||||||||
160,474 | 725 | 410,114 | ||||||||||||||
(101,712) | 73,392 | 1,945,134 | ||||||||||||||
$ | 90,267 | $ | 81,956 | $ | 2,342,596 | |||||||||||
Mid Cap Value | International | Capital Growth | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | 31,505 | $ | 33,480 | $ | 7,839 | $ | 8,693 | $ | (12,652) | $ | (11,588) | |||||
160,474 | 324,076 | 725 | 108,980 | 410,114 | 1,452,521 | |||||||||||
(101,712) | (376,759) | 73,392 | (342,149) | 1,945,134 | (4,430,254) | |||||||||||
90,267 | (19,203) | 81,956 | (224,476) | 2,342,596 | (2,989,321) | |||||||||||
51,330 | 59,725 | 44,462 | 54,299 | 180,219 | 215,123 | |||||||||||
84,238 | (175,672) | (86,753) | 16,136 | 39,747 | (288,557) | |||||||||||
(109,460) | (146,994) | (78,306) | (7,090) | (402,840) | (358,315) | |||||||||||
(41,408) | (40,285) | (21,683) | (23,648) | (226,213) | (231,131) | |||||||||||
(15,300) | (303,226) | (142,280) | 39,697 | (409,087) | (662,880) | |||||||||||
74,967 | (322,429) | (60,324) | (184,779) | 1,933,509 | (3,652,201) | |||||||||||
1,535,902 | 1,858,331 | 724,280 | 909,059 | 6,278,994 | 9,931,195 | |||||||||||
$ | 1,610,869 | $ | 1,535,902 | $ | 663,956 | $ | 724,280 | $ | 8,212,503 | $ | 6,278,994 | |||||
FS-12 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
Scudder | |||||||
International | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | 80,401 | |||||
Mortality and expense risk charge | (6,051) | ||||||
Net investment income(loss) | 74,350 | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | - | ||||||
Net realized gain(loss) on sale of fund shares | (41,509) | ||||||
Net realized gain(loss) | (41,509) | ||||||
Change in unrealized appreciation/depreciation | 388,846 | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 421,687 | |||||
International | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | 74,350 | $ | 73,112 | |||
Net realized gain(loss) | (41,509) | (43,177) | |||||
Net change in unrealized appreciation/depreciation | 388,846 | (413,111) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 421,687 | (383,176) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 123,167 | 152,412 | |||||
Subaccounts transfers (including fixed account), net | (119,515) | (25,668) | |||||
Transfers for policyowner benefits and terminations | (127,078) | (173,390) | |||||
Policyowner maintenance charges | (104,157) | (107,940) | |||||
Net increase(decrease) from policyowner transactions | (227,583) | (154,586) | |||||
Total increase(decrease) in net assets | 194,104 | (537,762) | |||||
Net assets at beginning of period | 2,340,862 | 2,878,624 | |||||
Net assets at end of period | $ | 2,534,966 | $ | 2,340,862 | |||
The accompanying notes are an integral part of these financial statements. |
FS-13 |
Scudder | ||||||||||||||||
Money | ||||||||||||||||
Market | Mid Value | Global | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | 260,752 | $ | 4,653 | $ | 2,246 | |||||||||||
(14,040) | (1,045) | (759) | ||||||||||||||
246,712 | 3,608 | 1,487 | ||||||||||||||
- | 15,626 | - | ||||||||||||||
- | 94 | 8,058 | ||||||||||||||
- | 15,720 | 8,058 | ||||||||||||||
- | 39,379 | 36,295 | ||||||||||||||
$ | 246,712 | $ | 58,707 | $ | 45,840 | |||||||||||
Money Market | Mid Value | Global | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | 246,712 | $ | 57,683 | $ | 3,608 | $ | 2,462 | $ | 1,487 | $ | 2,409 | |||||
- | - | 15,720 | 9,431 | 8,058 | 6,994 | |||||||||||
- | - | 39,379 | (98,288) | 36,295 | (122,976) | |||||||||||
246,712 | 57,683 | 58,707 | (86,395) | 45,840 | (113,573) | |||||||||||
234,238 | 293,347 | 24,777 | 22,096 | 9,700 | 13,175 | |||||||||||
2,856,201 | 2,339,680 | (6,734) | 23,410 | (27,401) | 26,648 | |||||||||||
(3,062,268) | (2,582,811) | (74,439) | (22,169) | (4) | (6,027) | |||||||||||
(198,306) | (180,534) | (10,609) | (10,389) | (9,392) | (9,690) | |||||||||||
(170,135) | (130,318) | (67,005) | 12,948 | (27,097) | 24,106 | |||||||||||
76,577 | (72,635) | (8,298) | (73,447) | 18,743 | (89,467) | |||||||||||
5,367,197 | 5,439,833 | 453,874 | 527,321 | 302,212 | 391,679 | |||||||||||
$ | 5,443,775 | $ | 5,367,197 | $ | 445,576 | $ | 453,874 | $ | 320,955 | $ | 302,212 | |||||
FS-14 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
Franklin Templeton | |||||||
Growth | |||||||
Securities | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | 10,660 | |||||
Mortality and expense risk charge | (797) | ||||||
Net investment income(loss) | 9,863 | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | - | ||||||
Net realized gain(loss) on sale of fund shares | (1,131) | ||||||
Net realized gain(loss) | (1,131) | ||||||
Change in unrealized appreciation/depreciation | 50,308 | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 59,040 | |||||
Growth Securities | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | 9,863 | $ | (260) | |||
Net realized gain(loss) | (1,131) | (1,299) | |||||
Net change in unrealized appreciation/depreciation | 50,308 | (35,245) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 59,040 | (36,804) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 20,717 | 22,368 | |||||
Subaccounts transfers (including fixed account), net | (7,308) | 48 | |||||
Transfers for policyowner benefits and terminations | (1,352) | (4,897) | |||||
Policyowner maintenance charges | (5,442) | (5,357) | |||||
Net increase(decrease) from policyowner transactions | 6,615 | 12,162 | |||||
Total increase(decrease) in net assets | 65,655 | (24,642) | |||||
Net assets at beginning of period | 284,343 | 308,985 | |||||
Net assets at end of period | $ | 349,998 | $ | 284,343 | |||
The accompanying notes are an integral part of these financial statements. |
FS-15 |
Franklin Templeton | ||||||||||||||||
Foreign | ||||||||||||||||
Securities | Income | Global Bond | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | 16,883 | $ | 8,479 | $ | - | |||||||||||
(1,297) | (424) | (2,107) | ||||||||||||||
15,586 | 8,055 | (2,107) | ||||||||||||||
- | 10,279 | - | ||||||||||||||
(2,229) | (3,342) | (12,644) | ||||||||||||||
(2,229) | 6,937 | (12,644) | ||||||||||||||
83,042 | (1,838) | 37,723 | ||||||||||||||
$ | 96,399 | $ | 13,154 | $ | 22,972 | |||||||||||
Foreign Securities | Income | Global Bond | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | 15,586 | $ | 13,814 | $ | 8,055 | $ | 8,071 | $ | (2,107) | $ | (2,385) | |||||
(2,229) | (5,468) | 6,937 | 2,667 | (12,644) | (86,146) | |||||||||||
83,042 | (51,704) | (1,838) | (17,803) | 37,723 | 40,598 | |||||||||||
96,399 | (43,358) | 13,154 | (7,065) | 22,972 | (47,933) | |||||||||||
7,351 | 48 | 5,477 | 2,434 | 30,932 | 39,471 | |||||||||||
(8,086) | (1,590) | 11,474 | 178,892 | 68,569 | (306,935) | |||||||||||
(27,026) | (19,620) | (19,424) | - | (37,046) | (71,521) | |||||||||||
(12,454) | (11,948) | (10,111) | (6,114) | (24,733) | (25,314) | |||||||||||
(40,215) | (33,110) | (12,584) | 175,212 | 37,722 | (364,299) | |||||||||||
56,184 | (76,468) | 570 | 168,147 | 60,694 | (412,232) | |||||||||||
483,605 | 560,073 | 168,147 | - | 802,991 | 1,215,223 | |||||||||||
$ | 539,789 | $ | 483,605 | $ | 168,717 | $ | 168,147 | $ | 863,685 | $ | 802,991 | |||||
FS-16 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
AIM | |||||||
American | |||||||
Value | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | 1,162 | |||||
Mortality and expense risk charge | (464) | ||||||
Net investment income(loss) | 698 | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | 38,142 | ||||||
Net realized gain(loss) on sale of fund shares | (6,184) | ||||||
Net realized gain(loss) | 31,958 | ||||||
Change in unrealized appreciation/depreciation | (6,371) | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 26,285 | |||||
American Value | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | 698 | $ | 989 | |||
Net realized gain(loss) | 31,958 | 35,221 | |||||
Net change in unrealized appreciation/depreciation | (6,371) | (42,290) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 26,285 | (6,080) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 12,814 | 13,347 | |||||
Subaccounts transfers (including fixed account), net | 515 | (1,770) | |||||
Transfers for policyowner benefits and terminations | (24,232) | (3,111) | |||||
Policyowner maintenance charges | (13,765) | (12,506) | |||||
Net increase(decrease) from policyowner transactions | (24,668) | (4,040) | |||||
Total increase(decrease) in net assets | 1,617 | (10,120) | |||||
Net assets at beginning of period | 196,460 | 206,580 | |||||
Net assets at end of period | $ | 198,077 | $ | 196,460 | |||
The accompanying notes are an integral part of these financial statements. |
FS-17 |
AIM | ||||||||||||||||
American | Intl | |||||||||||||||
Franchise | Growth | Global | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | - | $ | 2,621 | $ | 1,936 | |||||||||||
(13,317) | (3,338) | (328) | ||||||||||||||
(13,317) | (717) | 1,608 | ||||||||||||||
119,051 | 982 | - | ||||||||||||||
8,483 | (13,913) | (198) | ||||||||||||||
127,534 | (12,931) | (198) | ||||||||||||||
1,693,867 | 224,939 | 9,745 | ||||||||||||||
$ | 1,808,084 | $ | 211,291 | $ | 11,155 | |||||||||||
American Franchise | Intl Growth | Global | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | (13,317) | $ | (13,131) | $ | (717) | $ | 19,063 | $ | 1,608 | $ | 3,688 | |||||
127,534 | 1,433,826 | (12,931) | 146,646 | (198) | (2,141) | |||||||||||
1,693,867 | (3,517,972) | 224,939 | (498,346) | 9,745 | (47,888) | |||||||||||
1,808,084 | (2,097,277) | 211,291 | (332,637) | 11,155 | (46,341) | |||||||||||
183,018 | 194,828 | 69,363 | 74,466 | 3,485 | 3,019 | |||||||||||
(242,092) | 33,406 | (37,247) | (260,145) | 1,180 | (18,829) | |||||||||||
(169,424) | (137,588) | (78,966) | (128,778) | - | (526) | |||||||||||
(179,440) | (173,923) | (35,009) | (34,541) | (1,677) | (1,045) | |||||||||||
(407,938) | (83,277) | (81,859) | (348,998) | 2,988 | (17,381) | |||||||||||
1,400,146 | (2,180,554) | 129,432 | (681,635) | 14,143 | (63,722) | |||||||||||
4,573,100 | 6,753,654 | 1,221,840 | 1,903,475 | 124,631 | 188,353 | |||||||||||
$ | 5,973,246 | $ | 4,573,100 | $ | 1,351,272 | $ | 1,221,840 | $ | 138,774 | $ | 124,631 | |||||
FS-18 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
AIM | |||||||
Small | |||||||
Cap | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | - | |||||
Mortality and expense risk charge | (40) | ||||||
Net investment income(loss) | (40) | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | 107 | ||||||
Net realized gain(loss) on sale of fund shares | (26) | ||||||
Net realized gain(loss) | 81 | ||||||
Change in unrealized appreciation/depreciation | 803 | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 844 | |||||
Small Cap | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | (40) | $ | (40) | |||
Net realized gain(loss) | 81 | 1,068 | |||||
Net change in unrealized appreciation/depreciation | 803 | (2,518) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 844 | (1,490) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 137 | 127 | |||||
Subaccounts transfers (including fixed account), net | - | - | |||||
Transfers for policyowner benefits and terminations | - | - | |||||
Policyowner maintenance charges | (309) | (293) | |||||
Net increase(decrease) from policyowner transactions | (172) | (166) | |||||
Total increase(decrease) in net assets | 672 | (1,656) | |||||
Net assets at beginning of period | 5,442 | 7,098 | |||||
Net assets at end of period | $ | 6,114 | $ | 5,442 | |||
The accompanying notes are an integral part of these financial statements. |
FS-19 |
AIM | ||||||||||||||||
Equity & | Global | |||||||||||||||
Income | Cap App | Securities | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | 402 | $ | - | $ | 13,473 | |||||||||||
(49) | (772) | (14,522) | ||||||||||||||
353 | (772) | (1,049) | ||||||||||||||
1,052 | - | 681,322 | ||||||||||||||
(77) | (7,192) | (13,663) | ||||||||||||||
975 | (7,192) | 667,659 | ||||||||||||||
466 | 100,861 | 1,032,790 | ||||||||||||||
$ | 1,794 | $ | 92,897 | $ | 1,699,400 | |||||||||||
Equity & Income | Cap App | Global Securities | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | 353 | $ | 256 | $ | (772) | $ | (861) | $ | (1,049) | $ | (14,099) | |||||
975 | 2,185 | (7,192) | 123,456 | 667,659 | 1,030,251 | |||||||||||
466 | (3,316) | 100,861 | (264,063) | 1,032,790 | (3,452,314) | |||||||||||
1,794 | (875) | 92,897 | (141,468) | 1,699,400 | (2,436,162) | |||||||||||
192 | - | 14,751 | 21,768 | 198,131 | 204,148 | |||||||||||
4,872 | 7,691 | (19,701) | (53,742) | (137,298) | (138,359) | |||||||||||
(615) | (81) | (12,658) | (12,337) | (252,212) | (166,701) | |||||||||||
(971) | (473) | (9,169) | (10,144) | (106,509) | (108,310) | |||||||||||
3,478 | 7,137 | (26,777) | (54,455) | (297,888) | (209,222) | |||||||||||
5,272 | 6,262 | 66,120 | (195,923) | 1,401,512 | (2,645,384) | |||||||||||
15,809 | 9,547 | 280,371 | 476,294 | 5,081,463 | 7,726,847 | |||||||||||
$ | 21,081 | $ | 15,809 | $ | 346,491 | $ | 280,371 | $ | 6,482,975 | $ | 5,081,463 | |||||
FS-20 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
AIM | |||||||
Growth & | |||||||
Income | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | 32,124 | |||||
Mortality and expense risk charge | (9,326) | ||||||
Net investment income(loss) | 22,798 | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | 261,205 | ||||||
Net realized gain(loss) on sale of fund shares | (57,888) | ||||||
Net realized gain(loss) | 203,317 | ||||||
Change in unrealized appreciation/depreciation | 545,353 | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 771,468 | |||||
Growth & Income | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | 22,798 | $ | 45,381 | |||
Net realized gain(loss) | 203,317 | 1,453,246 | |||||
Net change in unrealized appreciation/depreciation | 545,353 | (2,411,958) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 771,468 | (913,331) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 173,487 | 137,376 | |||||
Subaccounts transfers (including fixed account), net | (49,636) | (183,474) | |||||
Transfers for policyowner benefits and terminations | (152,331) | (119,150) | |||||
Policyowner maintenance charges | (105,964) | (108,261) | |||||
Net increase(decrease) from policyowner transactions | (134,444) | (273,509) | |||||
Total increase(decrease) in net assets | 637,024 | (1,186,840) | |||||
Net assets at beginning of period | 3,408,325 | 4,595,165 | |||||
Net assets at end of period | $ | 4,045,349 | $ | 3,408,325 | |||
The accompanying notes are an integral part of these financial statements. |
FS-21 |
Van Kampen | Neuberger Berman | |||||||||||||||
U.S. | Emerging | |||||||||||||||
Real Estate | Markets | Regency | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | 60,993 | $ | 26,517 | $ | 1,766 | |||||||||||
(6,927) | (4,253) | (429) | ||||||||||||||
54,066 | 22,264 | 1,337 | ||||||||||||||
- | 28,703 | 8,909 | ||||||||||||||
(86,430) | (42,383) | (532) | ||||||||||||||
(86,430) | (13,680) | 8,377 | ||||||||||||||
402,594 | 174,464 | 6,623 | ||||||||||||||
$ | 370,230 | $ | 183,048 | $ | 16,337 | |||||||||||
U.S. Real Estate | Emerging Markets | Regency | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | 54,066 | $ | 28,954 | $ | 22,264 | $ | 3,257 | $ | 1,337 | $ | 573 | |||||
(86,430) | 735,324 | (13,680) | 173,125 | 8,377 | 27,317 | |||||||||||
402,594 | (1,722,193) | 174,464 | (717,078) | 6,623 | (46,874) | |||||||||||
370,230 | (957,915) | 183,048 | (540,696) | 16,337 | (18,984) | |||||||||||
143,087 | 169,068 | 61,834 | 75,960 | 6,137 | 5,844 | |||||||||||
3,532 | (373,643) | 41,632 | 88,354 | 15,126 | 10,600 | |||||||||||
(203,630) | (204,455) | (136,826) | (91,714) | (18,834) | (11,284) | |||||||||||
(85,444) | (92,861) | (43,656) | (42,388) | (7,290) | (6,773) | |||||||||||
(142,455) | (501,891) | (77,016) | 30,212 | (4,861) | (1,613) | |||||||||||
227,775 | (1,459,806) | 106,032 | (510,484) | 11,476 | (20,597) | |||||||||||
2,648,905 | 4,108,711 | 1,645,745 | 2,156,229 | 168,240 | 188,837 | |||||||||||
$ | 2,876,680 | $ | 2,648,905 | $ | 1,751,777 | $ | 1,645,745 | $ | 179,716 | $ | 168,240 | |||||
FS-22 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
Neuberger Berman | |||||||
Equity | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | 7,653 | |||||
Mortality and expense risk charge | (5,578) | ||||||
Net investment income(loss) | 2,075 | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | 36,114 | ||||||
Net realized gain(loss) on sale of fund shares | 27,987 | ||||||
Net realized gain(loss) | 64,101 | ||||||
Change in unrealized appreciation/depreciation | 463,381 | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 529,557 | |||||
Equity | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | 2,075 | $ | 4,132 | |||
Net realized gain(loss) | 64,101 | 347,681 | |||||
Net change in unrealized appreciation/depreciation | 463,381 | (905,851) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 529,557 | (554,038) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 57,385 | 57,970 | |||||
Subaccounts transfers (including fixed account), net | (134,504) | (580,891) | |||||
Transfers for policyowner benefits and terminations | (110,912) | (17,574) | |||||
Policyowner maintenance charges | (68,900) | (66,839) | |||||
Net increase(decrease) from policyowner transactions | (256,931) | (607,334) | |||||
Total increase(decrease) in net assets | 272,626 | (1,161,372) | |||||
Net assets at beginning of period | 2,149,375 | 3,310,747 | |||||
Net assets at end of period | $ | 2,422,001 | $ | 2,149,375 | |||
The accompanying notes are an integral part of these financial statements. |
FS-23 |
MFS | ||||||||||||||||
Investor | New | |||||||||||||||
Growth | Trust | Discovery | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | - | $ | 43,304 | $ | - | |||||||||||
(20,940) | (14,794) | (8,790) | ||||||||||||||
(20,940) | 28,510 | (8,790) | ||||||||||||||
654,812 | 333,255 | - | ||||||||||||||
267,409 | 125,059 | (135,448) | ||||||||||||||
922,221 | 458,314 | (135,448) | ||||||||||||||
1,641,841 | 541,422 | 607,364 | ||||||||||||||
$ | 2,543,122 | $ | 1,028,246 | $ | 463,126 | |||||||||||
Growth | Investor Trust | New Discovery | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | (20,940) | $ | (22,166) | $ | 28,510 | $ | 25,638 | $ | (8,790) | $ | (9,170) | |||||
922,221 | 1,305,787 | 458,314 | 953,943 | (135,448) | 1,076,124 | |||||||||||
1,641,841 | (5,026,931) | 541,422 | (2,190,877) | 607,364 | (2,530,733) | |||||||||||
2,543,122 | (3,743,310) | 1,028,246 | (1,211,296) | 463,126 | (1,463,779) | |||||||||||
169,080 | 176,238 | 133,532 | 147,629 | 100,671 | 111,797 | |||||||||||
(391,845) | (311,074) | (160,999) | (206,135) | (114,721) | 17,757 | |||||||||||
(357,967) | (406,209) | (175,820) | (192,564) | (144,624) | (149,059) | |||||||||||
(266,363) | (267,389) | (204,628) | (212,182) | (79,384) | (79,778) | |||||||||||
(847,095) | (808,434) | (407,915) | (463,252) | (238,058) | (99,283) | |||||||||||
1,696,027 | (4,551,744) | 620,331 | (1,674,548) | 225,068 | (1,563,062) | |||||||||||
7,522,629 | 12,074,373 | 5,667,686 | 7,342,234 | 3,368,715 | 4,931,777 | |||||||||||
$ | 9,218,656 | $ | 7,522,629 | $ | 6,288,017 | $ | 5,667,686 | $ | 3,593,783 | $ | 3,368,715 | |||||
FS-24 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
MFS | |||||||
Total | |||||||
Return | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | 74,423 | |||||
Mortality and expense risk charge | (9,060) | ||||||
Net investment income(loss) | 65,363 | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | 155,002 | ||||||
Net realized gain(loss) on sale of fund shares | 5,027 | ||||||
Net realized gain(loss) | 160,029 | ||||||
Change in unrealized appreciation/depreciation | 132,152 | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 357,544 | |||||
Total Return | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | 65,363 | $ | 54,472 | |||
Net realized gain(loss) | 160,029 | 487,274 | |||||
Net change in unrealized appreciation/depreciation | 132,152 | (965,284) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 357,544 | (423,538) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 138,958 | 142,846 | |||||
Subaccounts transfers (including fixed account), net | (54,183) | (52,595) | |||||
Transfers for policyowner benefits and terminations | (137,043) | (855,132) | |||||
Policyowner maintenance charges | (105,726) | (108,410) | |||||
Net increase(decrease) from policyowner transactions | (157,994) | (873,291) | |||||
Total increase(decrease) in net assets | 199,550 | (1,296,829) | |||||
Net assets at beginning of period | 3,619,553 | 4,916,382 | |||||
Net assets at end of period | $ | 3,819,103 | $ | 3,619,553 | |||
The accompanying notes are an integral part of these financial statements. |
FS-25 |
MFS | ||||||||||||||||
Global | ||||||||||||||||
Utilities | Value | Real Estate | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | 8,632 | $ | 14 | $ | - | |||||||||||
(624) | (7) | - | ||||||||||||||
8,008 | 7 | - | ||||||||||||||
13,356 | 58 | - | ||||||||||||||
(340) | - | - | ||||||||||||||
13,016 | 58 | - | ||||||||||||||
(27,276) | (4) | - | ||||||||||||||
$ | (6,252) | $ | 61 | $ | - | |||||||||||
Utilities | Value | Global Real Estate | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | 8,008 | $ | 5,787 | $ | 7 | $ | 6 | $ | - | $ | - | |||||
13,016 | 24,353 | 58 | 46 | - | - | |||||||||||
(27,276) | (28,677) | (4) | (101) | - | - | |||||||||||
(6,252) | 1,463 | 61 | (49) | - | - | |||||||||||
11,394 | 9,414 | 85 | 80 | - | - | |||||||||||
(20,570) | 55,854 | - | - | - | - | |||||||||||
(15,247) | (29,855) | - | - | - | - | |||||||||||
(9,883) | (10,027) | (26) | (26) | - | - | |||||||||||
(34,306) | 25,386 | 59 | 54 | - | - | |||||||||||
(40,558) | 26,849 | 120 | 5 | - | - | |||||||||||
274,232 | 247,383 | 800 | 795 | - | - | |||||||||||
$ | 233,674 | $ | 274,232 | $ | 920 | $ | 800 | $ | - | $ | - | |||||
FS-26 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
MFS | |||||||
High | |||||||
Yield | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | 104,528 | |||||
Mortality and expense risk charge | (4,911) | ||||||
Net investment income(loss) | 99,617 | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | - | ||||||
Net realized gain(loss) on sale of fund shares | (86,679) | ||||||
Net realized gain(loss) | (86,679) | ||||||
Change in unrealized appreciation/depreciation | 208,912 | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 221,850 | |||||
High Yield | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | 99,617 | $ | 123,726 | |||
Net realized gain(loss) | (86,679) | (94,845) | |||||
Net change in unrealized appreciation/depreciation | 208,912 | (318,396) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 221,850 | (289,515) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 92,124 | 116,209 | |||||
Subaccounts transfers (including fixed account), net | (385,689) | (100,233) | |||||
Transfers for policyowner benefits and terminations | (99,993) | (297,070) | |||||
Policyowner maintenance charges | (74,892) | (80,901) | |||||
Net increase(decrease) from policyowner transactions | (468,450) | (361,995) | |||||
Total increase(decrease) in net assets | (246,600) | (651,510) | |||||
Net assets at beginning of period | 2,071,385 | 2,722,895 | |||||
Net assets at end of period | $ | 1,824,785 | $ | 2,071,385 | |||
The accompanying notes are an integral part of these financial statements. |
FS-27 |
MFS | Seligman | |||||||||||||||
Research | Global Tech | Smaller Value | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | 18,826 | $ | - | $ | - | |||||||||||
(4,564) | (4,861) | (8,450) | ||||||||||||||
14,262 | (4,861) | (8,450) | ||||||||||||||
- | 106,115 | - | ||||||||||||||
984 | (39,456) | 233,205 | ||||||||||||||
984 | 66,659 | 233,205 | ||||||||||||||
199,768 | 629,204 | 190,753 | ||||||||||||||
$ | 215,014 | $ | 691,002 | $ | 415,508 | |||||||||||
Research | Global Tech | Smaller Value | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | 14,262 | $ | 30,095 | $ | (4,861) | $ | (4,738) | $ | (8,450) | $ | (9,336) | |||||
984 | 59,555 | 66,659 | 529,249 | 233,205 | 215,523 | |||||||||||
199,768 | (544,444) | 629,204 | (1,300,912) | 190,753 | (858,390) | |||||||||||
215,014 | (454,794) | 691,002 | (776,401) | 415,508 | (652,203) | |||||||||||
77,260 | 89,062 | 69,156 | 108,648 | 152,833 | 168,015 | |||||||||||
(67,803) | (392,576) | (168,396) | 22,138 | (148,716) | (137,960) | |||||||||||
(172,127) | (114,071) | (18,802) | (19,712) | (245,990) | (193,637) | |||||||||||
(50,866) | (51,541) | (40,599) | (40,546) | (95,026) | (103,588) | |||||||||||
(213,536) | (469,126) | (158,641) | 70,528 | (336,899) | (267,170) | |||||||||||
1,478 | (923,920) | 532,361 | (705,873) | 78,609 | (919,373) | |||||||||||
1,820,286 | 2,744,206 | 1,673,012 | 2,378,885 | 3,430,546 | 4,349,919 | |||||||||||
$ | 1,821,764 | $ | 1,820,286 | $ | 2,205,373 | $ | 1,673,012 | $ | 3,509,155 | $ | 3,430,546 | |||||
FS-28 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
Summit | |||||||
EAFE Intl. | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | 141,732 | |||||
Mortality and expense risk charge | (12,025) | ||||||
Net investment income(loss) | 129,707 | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | - | ||||||
Net realized gain(loss) on sale of fund shares | 30,380 | ||||||
Net realized gain(loss) | 30,380 | ||||||
Change in unrealized appreciation/depreciation | 598,611 | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 758,698 | |||||
EAFE Intl. | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | 129,707 | $ | 153,219 | |||
Net realized gain(loss) | 30,380 | 62,095 | |||||
Net change in unrealized appreciation/depreciation | 598,611 | (1,146,991) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 758,698 | (931,677) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 205,718 | 234,063 | |||||
Subaccounts transfers (including fixed account), net | (3,732) | (214,220) | |||||
Transfers for policyowner benefits and terminations | (332,409) | (162,219) | |||||
Policyowner maintenance charges | (107,937) | (107,322) | |||||
Net increase(decrease) from policyowner transactions | (238,360) | (249,698) | |||||
Total increase(decrease) in net assets | 520,338 | (1,181,375) | |||||
Net assets at beginning of period | 4,508,988 | 5,690,363 | |||||
Net assets at end of period | $ | 5,029,326 | $ | 4,508,988 | |||
The accompanying notes are an integral part of these financial statements. |
FS-29 |
Summit | ||||||||||||||||
Barclays | S&P 500 | Nasdaq 100 | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | 151,290 | $ | 683,044 | $ | 33,485 | |||||||||||
(14,060) | (124,837) | (25,124) | ||||||||||||||
137,230 | 558,207 | 8,361 | ||||||||||||||
- | 2,522,072 | - | ||||||||||||||
(77,385) | 1,312,716 | 422,055 | ||||||||||||||
(77,385) | 3,834,788 | 422,055 | ||||||||||||||
227,761 | 7,008,867 | 3,783,877 | ||||||||||||||
$ | 287,606 | $ | 11,401,862 | $ | 4,214,293 | |||||||||||
Barclays | S&P 500 | Nasdaq 100 | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | 137,230 | $ | 147,177 | $ | 558,207 | $ | 497,601 | $ | 8,361 | $ | (6,781) | |||||
(77,385) | (93,787) | 3,834,788 | 5,044,929 | 422,055 | 1,488,885 | |||||||||||
227,761 | (952,835) | 7,008,867 | (16,434,919) | 3,783,877 | (5,532,446) | |||||||||||
287,606 | (899,445) | 11,401,862 | (10,892,389) | 4,214,293 | (4,050,342) | |||||||||||
282,235 | 317,534 | 1,271,551 | 1,473,527 | 205,814 | 261,625 | |||||||||||
(25,184) | (571,869) | (2,699,868) | 374,557 | (84,726) | (1,387,750) | |||||||||||
(323,846) | (276,442) | (1,936,657) | (1,828,095) | (470,944) | (350,800) | |||||||||||
(189,496) | (199,752) | (1,247,531) | (1,291,347) | (219,235) | (208,266) | |||||||||||
(256,291) | (730,529) | (4,612,505) | (1,271,358) | (569,091) | (1,685,191) | |||||||||||
31,315 | (1,629,974) | 6,789,357 | (12,163,747) | 3,645,202 | (5,735,533) | |||||||||||
5,677,343 | 7,307,317 | 46,546,200 | 58,709,947 | 7,971,049 | 13,706,582 | |||||||||||
$ | 5,708,658 | $ | 5,677,343 | $ | 53,335,557 | $ | 46,546,200 | $ | 11,616,251 | $ | 7,971,049 | |||||
FS-30 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
Summit | |||||||
Russell | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | 68,300 | |||||
Mortality and expense risk charge | (19,285) | ||||||
Net investment income(loss) | 49,015 | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | 4,351 | ||||||
Net realized gain(loss) on sale of fund shares | (60,146) | ||||||
Net realized gain(loss) | (55,795) | ||||||
Change in unrealized appreciation/depreciation | 1,168,763 | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 1,161,983 | |||||
Russell | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | 49,015 | $ | 45,812 | |||
Net realized gain(loss) | (55,795) | 1,038,856 | |||||
Net change in unrealized appreciation/depreciation | 1,168,763 | (3,015,627) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 1,161,983 | (1,930,959) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 331,290 | 383,312 | |||||
Subaccounts transfers (including fixed account), net | 16,379 | (358,170) | |||||
Transfers for policyowner benefits and terminations | (347,172) | (282,337) | |||||
Policyowner maintenance charges | (189,670) | (198,205) | |||||
Net increase(decrease) from policyowner transactions | (189,173) | (455,400) | |||||
Total increase(decrease) in net assets | 972,810 | (2,386,359) | |||||
Net assets at beginning of period | 7,398,429 | 9,784,788 | |||||
Net assets at end of period | $ | 8,371,239 | $ | 7,398,429 | |||
The accompanying notes are an integral part of these financial statements. |
FS-31 |
Summit | ||||||||||||||||
Midcap 400 | Moderate | Mod. Growth | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | 149,491 | $ | 9,667 | $ | 14,403 | |||||||||||
(30,640) | (1,668) | (2,779) | ||||||||||||||
118,851 | 7,999 | 11,624 | ||||||||||||||
504,420 | 36,190 | 64,674 | ||||||||||||||
256,598 | 1,045 | 4,106 | ||||||||||||||
761,018 | 37,235 | 68,780 | ||||||||||||||
945,055 | 28,585 | 50,097 | ||||||||||||||
$ | 1,824,924 | $ | 73,819 | $ | 130,501 | |||||||||||
Midcap 400 | Moderate | Mod. Growth | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | 118,851 | $ | 87,601 | $ | 7,999 | $ | 5,662 | $ | 11,624 | $ | 7,767 | |||||
761,018 | 1,690,071 | 37,235 | 24,672 | 68,780 | 108,842 | |||||||||||
945,055 | (3,745,502) | 28,585 | (142,483) | 50,097 | (334,506) | |||||||||||
1,824,924 | (1,967,830) | 73,819 | (112,149) | 130,501 | (217,897) | |||||||||||
392,422 | 405,455 | 20,294 | 27,215 | 46,846 | 55,582 | |||||||||||
(567,485) | 18,619 | 42,226 | (19,635) | 8,212 | (394,779) | |||||||||||
(563,296) | (320,343) | (51,897) | (8,381) | (74,133) | (129,379) | |||||||||||
(312,426) | (325,197) | (19,774) | (21,600) | (32,263) | (31,882) | |||||||||||
(1,050,785) | (221,466) | (9,151) | (22,401) | (51,338) | (500,458) | |||||||||||
774,139 | (2,189,296) | 64,668 | (134,550) | 79,163 | (718,355) | |||||||||||
12,138,448 | 14,327,744 | 642,931 | 777,481 | 991,115 | 1,709,470 | |||||||||||
$ | 12,912,587 | $ | 12,138,448 | $ | 707,599 | $ | 642,931 | $ | 1,070,278 | $ | 991,115 | |||||
FS-32 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
Calvert | |||||||
Balanced | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | 12,580 | |||||
Mortality and expense risk charge | (2,013) | ||||||
Net investment income(loss) | 10,567 | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | 3,014 | ||||||
Net realized gain(loss) on sale of fund shares | 5,565 | ||||||
Net realized gain(loss) | 8,579 | ||||||
Change in unrealized appreciation/depreciation | 104,806 | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 123,952 | |||||
Balanced | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | 10,567 | $ | 7,967 | |||
Net realized gain(loss) | 8,579 | 91,218 | |||||
Net change in unrealized appreciation/depreciation | 104,806 | (245,319) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 123,952 | (146,134) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 39,024 | 54,514 | |||||
Subaccounts transfers (including fixed account), net | (13,799) | 28,149 | |||||
Transfers for policyowner benefits and terminations | (51,657) | (59,116) | |||||
Policyowner maintenance charges | (37,346) | (38,274) | |||||
Net increase(decrease) from policyowner transactions | (63,778) | (14,727) | |||||
Total increase(decrease) in net assets | 60,174 | (160,861) | |||||
Net assets at beginning of period | 783,028 | 943,889 | |||||
Net assets at end of period | $ | 843,202 | $ | 783,028 | |||
The accompanying notes are an integral part of these financial statements. |
FS-33 |
Fidelity | ||||||||||||||||
Contrafund | Equity Inc. | High Inc. | ||||||||||||||
IC | IC | IC | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | 11,333 | $ | 9,342 | $ | 100,242 | |||||||||||
(5,690) | (1,136) | (4,606) | ||||||||||||||
5,643 | 8,206 | 95,636 | ||||||||||||||
81,367 | 14,022 | - | ||||||||||||||
30,796 | (405) | (29,459) | ||||||||||||||
112,163 | 13,617 | (29,459) | ||||||||||||||
522,920 | 24,944 | 105,969 | ||||||||||||||
$ | 640,726 | $ | 46,767 | $ | 172,146 | |||||||||||
Contrafund IC | Equity Inc. IC | High Inc. IC | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | 5,643 | $ | 5,561 | $ | 8,206 | $ | 7,110 | $ | 95,636 | $ | 86,282 | |||||
112,163 | 195,813 | 13,617 | 16,319 | (29,459) | (67,817) | |||||||||||
522,920 | (945,104) | 24,944 | (47,345) | 105,969 | (282,912) | |||||||||||
640,726 | (743,730) | 46,767 | (23,916) | 172,146 | (264,447) | |||||||||||
124,359 | 135,473 | 17,566 | 21,408 | 74,073 | 83,996 | |||||||||||
(113,505) | (26,610) | 67,171 | 97,573 | 59,434 | (380,525) | |||||||||||
(17,347) | (184,307) | (32,981) | (5,381) | (131,465) | (141,740) | |||||||||||
(50,492) | (55,925) | (11,274) | (10,232) | (52,105) | (53,575) | |||||||||||
(56,985) | (131,369) | 40,482 | 103,368 | (50,063) | (491,844) | |||||||||||
583,741 | (875,099) | 87,249 | 79,452 | 122,083 | (756,291) | |||||||||||
1,975,354 | 2,850,453 | 421,745 | 342,293 | 1,713,905 | 2,470,196 | |||||||||||
$ | 2,559,095 | $ | 1,975,354 | $ | 508,994 | $ | 421,745 | $ | 1,835,988 | $ | 1,713,905 | |||||
FS-34 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
Fidelity | |||||||
Bond IC | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | 37,477 | |||||
Mortality and expense risk charge | (3,612) | ||||||
Net investment income(loss) | 33,865 | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | - | ||||||
Net realized gain(loss) on sale of fund shares | (17,172) | ||||||
Net realized gain(loss) | (17,172) | ||||||
Change in unrealized appreciation/depreciation | 62,249 | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 78,942 | |||||
Bond IC | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | 33,865 | $ | 27,631 | |||
Net realized gain(loss) | (17,172) | 26,070 | |||||
Net change in unrealized appreciation/depreciation | 62,249 | (288,970) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 78,942 | (235,269) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 53,993 | 65,438 | |||||
Subaccounts transfers (including fixed account), net | 569,649 | (287,338) | |||||
Transfers for policyowner benefits and terminations | (75,358) | (91,758) | |||||
Policyowner maintenance charges | (46,129) | (46,160) | |||||
Net increase(decrease) from policyowner transactions | 502,155 | (359,818) | |||||
Total increase(decrease) in net assets | 581,097 | (595,087) | |||||
Net assets at beginning of period | 1,331,851 | 1,926,938 | |||||
Net assets at end of period | $ | 1,912,948 | $ | 1,331,851 | |||
The accompanying notes are an integral part of these financial statements. |
FS-35 |
Fidelity | ||||||||||||||||
Mid Cap IC | Overseas IC | Strategic IC | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | 3,248 | $ | - | $ | - | |||||||||||
(1,342) | - | - | ||||||||||||||
1,906 | - | - | ||||||||||||||
14,901 | - | - | ||||||||||||||
173 | - | - | ||||||||||||||
15,074 | - | - | ||||||||||||||
57,310 | - | - | ||||||||||||||
$ | 74,290 | $ | - | $ | - | |||||||||||
Mid Cap IC | Overseas IC | Strategic IC | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | 1,906 | $ | 1,325 | $ | - | $ | - | $ | - | $ | - | |||||
15,074 | 39,158 | - | - | - | - | |||||||||||
57,310 | (147,838) | - | - | - | - | |||||||||||
74,290 | (107,355) | - | - | - | - | |||||||||||
21,854 | 23,768 | - | - | - | - | |||||||||||
(16,279) | (54,709) | - | - | - | - | |||||||||||
(39,885) | (2,366) | - | - | - | - | |||||||||||
(9,694) | (9,504) | - | - | - | - | |||||||||||
(44,004) | (42,811) | - | - | - | - | |||||||||||
30,286 | (150,166) | - | - | - | - | |||||||||||
545,793 | 695,959 | - | - | - | - | |||||||||||
$ | 576,079 | $ | 545,793 | $ | - | $ | - | $ | - | $ | - | |||||
FS-36 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
Fidelity | |||||||
Money | |||||||
Market | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | 870 | |||||
Mortality and expense risk charge | (126) | ||||||
Net investment income(loss) | 744 | ||||||
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 | $ | 744 | |||||
Money Market | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | 744 | $ | 125 | |||
Net realized gain(loss) | - | - | |||||
Net change in unrealized appreciation/depreciation | - | - | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 744 | 125 | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 1,887 | 1,887 | |||||
Subaccounts transfers (including fixed account), net | - | - | |||||
Transfers for policyowner benefits and terminations | - | - | |||||
Policyowner maintenance charges | (802) | (761) | |||||
Net increase(decrease) from policyowner transactions | 1,085 | 1,126 | |||||
Total increase(decrease) in net assets | 1,829 | 1,251 | |||||
Net assets at beginning of period | 17,273 | 16,022 | |||||
Net assets at end of period | $ | 19,102 | $ | 17,273 | |||
The accompanying notes are an integral part of these financial statements. |
FS-37 |
Third Avenue | T. Rowe | |||||||||||||||
Equity | ||||||||||||||||
Value | Blue Chip | Income | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | 15,730 | $ | - | $ | - | |||||||||||
(1,698) | (9,073) | - | ||||||||||||||
14,032 | (9,073) | - | ||||||||||||||
43,763 | - | - | ||||||||||||||
36,377 | 198,487 | - | ||||||||||||||
80,140 | 198,487 | - | ||||||||||||||
35,748 | 1,223,023 | - | ||||||||||||||
$ | 129,920 | $ | 1,412,437 | $ | - | |||||||||||
Value | Blue Chip | Equity Income | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | 14,032 | $ | 7,894 | $ | (9,073) | $ | (9,874) | $ | - | $ | - | |||||
80,140 | 25,223 | 198,487 | 395,648 | - | - | |||||||||||
35,748 | 62,082 | 1,223,023 | (2,424,238) | - | - | |||||||||||
129,920 | 95,199 | 1,412,437 | (2,038,464) | - | - | |||||||||||
26,891 | 30,101 | 114,246 | 136,523 | - | - | |||||||||||
(62,468) | (24,058) | (582,553) | (110,572) | - | - | |||||||||||
(22,779) | (55,692) | (175,978) | (217,506) | - | - | |||||||||||
(19,172) | (18,661) | (96,313) | (92,512) | - | - | |||||||||||
(77,528) | (68,310) | (740,598) | (284,067) | - | - | |||||||||||
52,392 | 26,889 | 671,839 | (2,322,531) | - | - | |||||||||||
668,357 | 641,468 | 3,113,870 | 5,436,401 | - | - | |||||||||||
$ | 720,749 | $ | 668,357 | $ | 3,785,709 | $ | 3,113,870 | $ | - | $ | - | |||||
FS-38 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
Pimco | |||||||
Total Return | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | 20,160 | |||||
Mortality and expense risk charge | (1,411) | ||||||
Net investment income(loss) | 18,749 | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | - | ||||||
Net realized gain(loss) on sale of fund shares | (15,418) | ||||||
Net realized gain(loss) | (15,418) | ||||||
Change in unrealized appreciation/depreciation | 31,459 | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 34,790 | |||||
Total Return | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | 18,749 | $ | 20,368 | |||
Net realized gain(loss) | (15,418) | (137,131) | |||||
Net change in unrealized appreciation/depreciation | 31,459 | (69,736) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 34,790 | (186,499) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 51,591 | 44,656 | |||||
Subaccounts transfers (including fixed account), net | 60,606 | (571,910) | |||||
Transfers for policyowner benefits and terminations | (33,582) | (69,958) | |||||
Policyowner maintenance charges | (31,503) | (32,690) | |||||
Net increase(decrease) from policyowner transactions | 47,112 | (629,902) | |||||
Total increase(decrease) in net assets | 81,902 | (816,401) | |||||
Net assets at beginning of period | 566,258 | 1,382,659 | |||||
Net assets at end of period | $ | 648,160 | $ | 566,258 | |||
The accompanying notes are an integral part of these financial statements. |
FS-39 |
Pimco | Ivy | |||||||||||||||
Low | ||||||||||||||||
Duration | Real Return | Science | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | 5,705 | $ | 792 | $ | - | |||||||||||
(401) | (75) | (3) | ||||||||||||||
5,304 | 717 | (3) | ||||||||||||||
- | - | 18 | ||||||||||||||
(3,849) | (9,721) | (4) | ||||||||||||||
(3,849) | (9,721) | 14 | ||||||||||||||
5,694 | 10,871 | 94 | ||||||||||||||
$ | 7,149 | $ | 1,867 | $ | 105 | |||||||||||
Low Duration | Real Return | Science | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | 5,304 | $ | 2,693 | $ | 717 | $ | 7,440 | $ | (3) | $ | (3) | |||||
(3,849) | (2,196) | (9,721) | (4,425) | 14 | 38 | |||||||||||
5,694 | (11,224) | 10,871 | (16,772) | 94 | (177) | |||||||||||
7,149 | (10,727) | 1,867 | (13,757) | 105 | (142) | |||||||||||
4,486 | 9,757 | 931 | 1,872 | - | - | |||||||||||
(20,913) | 63,187 | (26,204) | (161,364) | - | - | |||||||||||
(44,778) | (18) | (37,541) | (3,286) | - | - | |||||||||||
(6,712) | (5,986) | (487) | (2,332) | (15) | (15) | |||||||||||
(67,917) | 66,940 | (63,301) | (165,110) | (15) | (15) | |||||||||||
(60,768) | 56,213 | (61,434) | (178,867) | 90 | (157) | |||||||||||
202,324 | 146,111 | 95,874 | 274,741 | 286 | 443 | |||||||||||
$ | 141,556 | $ | 202,324 | $ | 34,440 | $ | 95,874 | $ | 376 | $ | 286 | |||||
FS-40 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
Ivy | |||||||
Balanced | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | 274 | |||||
Mortality and expense risk charge | (85) | ||||||
Net investment income(loss) | 189 | ||||||
Realized gain(loss) on investments: | |||||||
Net realized gain distributions | - | ||||||
Net realized gain(loss) on sale of fund shares | (20) | ||||||
Net realized gain(loss) | (20) | ||||||
Change in unrealized appreciation/depreciation | 4,069 | ||||||
Net increase(decrease) in net assets resulting | |||||||
from operations | $ | 4,238 | |||||
Balanced | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | 189 | $ | 15 | |||
Net realized gain(loss) | (20) | 1,654 | |||||
Net change in unrealized appreciation/depreciation | 4,069 | (3,770) | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | 4,238 | (2,101) | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | 1,725 | 1,644 | |||||
Subaccounts transfers (including fixed account), net | (19,023) | 31,417 | |||||
Transfers for policyowner benefits and terminations | - | - | |||||
Policyowner maintenance charges | (2,938) | (2,821) | |||||
Net increase(decrease) from policyowner transactions | (20,236) | 30,240 | |||||
Total increase(decrease) in net assets | (15,998) | 28,139 | |||||
Net assets at beginning of period | 33,739 | 5,600 | |||||
Net assets at end of period | $ | 17,741 | $ | 33,739 | |||
The accompanying notes are an integral part of these financial statements. |
FS-41 |
Ibbotson | ||||||||||||||||
Growth | Income | Balanced | ||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||
$ | 15,957 | $ | 798 | $ | 3,902 | |||||||||||
(2,131) | (91) | (473) | ||||||||||||||
13,826 | 707 | 3,429 | ||||||||||||||
20,659 | 371 | 4,542 | ||||||||||||||
37 | (77) | (153) | ||||||||||||||
20,696 | 294 | 4,389 | ||||||||||||||
85,853 | 2,620 | 14,731 | ||||||||||||||
$ | 120,375 | $ | 3,621 | $ | 22,549 | |||||||||||
Growth | Income | Balanced | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ | 13,826 | $ | 10,970 | $ | 707 | $ | 532 | $ | 3,429 | $ | 2,687 | |||||
20,696 | 32,985 | 294 | 1,492 | 4,389 | 8,636 | |||||||||||
85,853 | (163,170) | 2,620 | (6,884) | 14,731 | (37,826) | |||||||||||
120,375 | (119,215) | 3,621 | (4,860) | 22,549 | (26,503) | |||||||||||
41,259 | 37,681 | 2,454 | 2,537 | 1,109 | 572 | |||||||||||
7,671 | 9,240 | 107 | 169 | 9,513 | 5,357 | |||||||||||
- | - | - | - | (1,306) | - | |||||||||||
(18,451) | (18,171) | (1,101) | (1,163) | (3,755) | (3,420) | |||||||||||
30,479 | 28,750 | 1,460 | 1,543 | 5,561 | 2,509 | |||||||||||
150,854 | (90,465) | 5,081 | (3,317) | 28,110 | (23,994) | |||||||||||
782,662 | 873,127 | 34,232 | 37,549 | 177,340 | 201,334 | |||||||||||
$ | 933,516 | $ | 782,662 | $ | 39,313 | $ | 34,232 | $ | 205,450 | $ | 177,340 | |||||
FS-42 |
CARILLON LIFE ACCOUNT
FOR THE PERIODS ENDED DECEMBER 31
American Funds | |||||||
IS New World | |||||||
2023 | |||||||
STATEMENTS OF OPERATIONS | |||||||
Investment income: | |||||||
Dividend distributions received | $ | - | |||||
Mortality and expense risk charge | - | ||||||
Net investment income(loss) | - | ||||||
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 | $ | - | |||||
IS New World | |||||||
STATEMENTS OF CHANGES IN NET ASSETS | 2023 | 2022 | |||||
Increase(decrease) in net assets from operations: | |||||||
Net investment income(loss) | $ | - | $ | - | |||
Net realized gain(loss) | - | - | |||||
Net change in unrealized appreciation/depreciation | - | - | |||||
Net increase(decrease) in net assets resulting | |||||||
from operations | - | - | |||||
Net increase(decrease) from policyowner transactions: | |||||||
Payments received from policyowners | - | - | |||||
Subaccounts transfers (including fixed account), net | - | - | |||||
Transfers for policyowner benefits and terminations | - | - | |||||
Policyowner maintenance charges | - | - | |||||
Net increase(decrease) from policyowner transactions | - | - | |||||
Total increase(decrease) in net assets | - | - | |||||
Net assets at beginning of period | - | - | |||||
Net assets at end of period | $ | - | $ | - | |||
The accompanying notes are an integral part of these financial statements. |
FS-43 |
CARILLON LIFE ACCOUNT NOTES TO FINANCIAL STATEMENTS FOR THE PERIODS ENDED DECEMBER 31, 2023 AND 2022 |
1. ORGANIZATION
Carillon Life Account (the “Account”) began operations during 1984. 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 life 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 sixty-nine subaccounts available within the Account listed as follows:
Fred Alger Management, LLC (Advisor) | Templeton Investment Counsel, LLC | |||||||||
Alger (Fund Series short cite) | Franklin Templeton | |||||||||
*Capital App (Subaccount short cite) | *Foreign Securities | |||||||||
*Mid Cap | ||||||||||
*Balanced | Franklin Advisers, Inc. | |||||||||
Franklin Templeton | ||||||||||
American Century Investment | *Income | |||||||||
Management, Inc. | *Global Bond | |||||||||
American Century | ||||||||||
*Income & Growth | Invesco Advisers, Inc. | |||||||||
*Value | AIM | |||||||||
*Mid Cap Value | *American Value | |||||||||
*International | (Commenced April 30, 2021) | |||||||||
*American Franchise | ||||||||||
DWS Investment Management | *Intl Growth | |||||||||
Americas, Inc. | *Global | |||||||||
Scudder | *Small Cap | |||||||||
*Capital Growth | *Equity & Income | |||||||||
*International | *Cap App | |||||||||
*Money Market | *Global Securities | |||||||||
*Mid Value | *Growth & Income | |||||||||
*Global | ||||||||||
Templeton Global Advisors Limited | ||||||||||
Franklin Templeton | ||||||||||
*Growth Securities | ||||||||||
FS-44 |
1. ORGANIZATION, continued
Morgan Stanley Investment Management Inc. | Fidelity Management & Research | |||||||||
Van Kampen | Company LLC | |||||||||
*U.S. Real Estate | Fidelity | |||||||||
*Emerging Markets | *Contrafund IC | |||||||||
*Equity Inc. IC | ||||||||||
*High Inc. IC | ||||||||||
Neuberger Berman Investment Advisers LLC | *Bond IC | |||||||||
Neuberger Berman | *Mid Cap IC | |||||||||
*Regency | *Overseas IC | |||||||||
*Equity | *Strategic IC (A) | |||||||||
(Commenced April 29, 2019) | *Money Market | |||||||||
Massachusetts Financial Services Company | Third Avenue Management LLC | |||||||||
MFS | Third Avenue | |||||||||
*Growth | *Value | |||||||||
*Investor Trust | ||||||||||
*New Discovery | T. Rowe Price Associates, Inc. | |||||||||
*Total Return | T. Rowe | |||||||||
*Utilities | *Blue Chip | |||||||||
*Value | *Equity Income (A) | |||||||||
*Global Real Estate (A) | ||||||||||
*High Yield | Pacific Investment Management Company LLC | |||||||||
*Research | Pimco | |||||||||
*Total Return | ||||||||||
Columbia Management Investment | * Low Duration | |||||||||
Advisers, LLC | * Real Return | |||||||||
Seligman | ||||||||||
*Global Tech | Delaware Management Company | |||||||||
*Smaller Value | Ivy | |||||||||
*Science | ||||||||||
Calvert Research and Managment | *Balanced | |||||||||
(See Note 3) | ||||||||||
Summit | ALPS Advisors, Inc. | |||||||||
*EAFE Intl. | Ibbotson | |||||||||
*Barclays | *Growth | |||||||||
*S&P 500 | *Income | |||||||||
*Nasdaq 100 | *Balanced | |||||||||
*Russell | ||||||||||
*Micap 400 | Capital Research and Management Company (SM) | |||||||||
*Moderate | American Funds | |||||||||
*Mod. Growth | *IS New World (A) | |||||||||
Calvert | ||||||||||
*Balanced |
(A) These subaccounts have had no activity since inception.
Note: The above chart references the fund series and subaccount short cites from the Statements of Net Assets.
FS-45 |
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 life 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-46 |
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: | |||
Barclays | .050 | ||
S&P 500 | .050 | ||
Nasdaq 100 | .050 | ||
Russell | .050 | ||
Midcap 400 | .050 | ||
Moderate | .050 | ||
Mod. Growth | .050 |
FS-47 |
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:
FS-48 |
4. PURCHASES
AND SALES OF INVESTMENTS, continued
Purchases | Sales | |||||||
MFS: | ||||||||
Growth | $ | 809,840 | $ | 1,023,063 | ||||
Investor Trust | 463,968 | 510,118 | ||||||
New Discovery | 104,499 | 351,348 | ||||||
Total Return | 413,353 | 350,983 | ||||||
Utilities | 30,909 | 43,851 | ||||||
Value | 130 | 6 | ||||||
Global Real Estate | - | - | ||||||
High Yield | 178,824 | 547,657 | ||||||
Research | 120,948 | 320,223 | ||||||
Seligman: | ||||||||
Global Tech | 416,757 | 474,144 | ||||||
Smaller Value | 122,701 | 468,050 | ||||||
Summit: | ||||||||
EAFE Intl. | 442,918 | 551,571 | ||||||
Barclays | 435,038 | 554,099 | ||||||
S&P 500 | 3,747,210 | 5,279,436 | ||||||
Nasdaq 100 | 407,861 | 968,592 | ||||||
Russell | 700,613 | 836,420 | ||||||
Midcap 400 | 894,252 | 1,321,767 | ||||||
Moderate | 86,057 | 51,018 | ||||||
Mod. Growth | 141,421 | 116,461 | ||||||
Calvert: | ||||||||
Balanced | 39,325 | 89,522 | ||||||
Fidelity: | ||||||||
Contrafund IC | 292,956 | 262,932 | ||||||
Equity Inc. IC | 105,665 | 42,955 | ||||||
High Inc. IC | 226,817 | 181,245 | ||||||
Bond IC | 633,950 | 97,930 | ||||||
Mid Cap IC | 50,448 | 77,647 | ||||||
Overseas IC | - | - | ||||||
Strategic IC | - | - | ||||||
Money Market | 1,942 | 113 | ||||||
Third Avenue: | ||||||||
Value | 98,333 | 118,065 | ||||||
T. Rowe: | ||||||||
Blue Chip | 164,454 | 914,125 | ||||||
Equity Income | - | - |
FS-49 |
4. PURCHASES AND SALES OF INVESTMENTS, continued
Purchases | Sales | |||||||
Pimco: | ||||||||
Total Return | $ | 139,037 | $ | 73,175 | ||||
Low Duration | 10,345 | 72,957 | ||||||
Real Return | 12,048 | 74,632 | ||||||
Ivy: | ||||||||
Science | 17 | 17 | ||||||
Balanced | 3,483 | 23,530 | ||||||
Ibbotson: | ||||||||
Growth | 80,204 | 15,240 | ||||||
Income | 3,167 | 628 | ||||||
Balanced | 18,046 | 4,513 | ||||||
American Funds: | ||||||||
IS New World | - | - |
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 .25 percent and .70 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 from $5 to $10 per policy monthly, depending on the product selected. On all life insurance policies, cost of insurance is charged to each policyowner monthly through the redemption of units. The cost of insurance is determined based upon several variables, including policyowners death benefit amount and account value.
Total Return – The Total Return represents the change in the unit value reported year-to-date; however, subaccounts which commenced during a year, as shown in Note 1, are based on shorter return periods. These percentages do not include any expenses assessed through the redemption of units. As the total return is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract total returns are not within the ranges presented.
FS-50 |
5. FINANCIAL HIGHLIGHTS, continued
At December 31 | For the Periods Ended December 31 | |||||||||||||
Net | Inv. | |||||||||||||
Unit | Assets | Income | Expense | Total | ||||||||||
Value ($) | Units | ($) | Ratio % | Ratio % | Return % | |||||||||
Min | Max | Min | Max | Min | Max | |||||||||
Alger: | ||||||||||||||
Capital App | ||||||||||||||
2023 | 75.95 | 75.95 | 41,973 | 3,187,825 | - | 0.25 | 0.25 | 42.77 | 42.77 | |||||
2022 | 53.20 | 53.20 | 43,328 | 2,304,860 | - | 0.25 | 0.25 | (36.68) | (36.68) | |||||
2021 | 84.01 | 84.01 | 44,634 | 3,749,805 | - | 0.25 | 0.25 | 18.83 | 18.83 | |||||
2020 | 70.70 | 70.70 | 45,442 | 3,212,811 | - | 0.25 | 0.25 | 41.40 | 41.40 | |||||
2019 | 45.54 | 50.00 | 50,559 | 2,528,041 | - | 0.25 | 0.75 | 10.65 | 33.25 | |||||
Mid Cap | ||||||||||||||
2023 | 42.82 | 42.82 | 81,873 | 3,505,605 | - | 0.25 | 0.25 | 22.87 | 22.87 | |||||
2022 | 34.85 | 34.85 | 86,360 | 3,009,589 | - | 0.25 | 0.25 | (36.23) | (36.23) | |||||
2021 | 54.65 | 54.65 | 90,831 | 4,963,940 | - | 0.25 | 0.25 | 3.94 | 3.94 | |||||
2020 | 52.58 | 52.58 | 97,146 | 5,107,585 | - | 0.25 | 0.25 | 64.22 | 64.22 | |||||
2019 | 29.16 | 32.02 | 112,813 | 3,611,881 | - | 0.25 | 0.75 | 17.03 | 29.93 | |||||
Balanced | ||||||||||||||
2023 | - | - | - | - | - | - | - | - | - | |||||
2022 | - | - | - | - | - | - | - | - | - | |||||
2021 | - | - | - | - | - | - | - | - | - | |||||
2020 | - | - | - | - | - | - | - | - | - | |||||
2019 | - | - | - | - | - | - | - | - | - | |||||
American Century: | ||||||||||||||
Income & Growth | ||||||||||||||
2023 | 16.96 | 35.72 | 90,346 | 3,174,211 | 1.54 | 0.25 | 0.70 | 7.90 | 8.38 | |||||
2022 | 15.71 | 32.96 | 91,358 | 2,966,342 | 1.76 | 0.25 | 0.70 | (13.34) | (12.95) | |||||
2021 | 18.13 | 37.87 | 104,256 | 3,893,317 | 1.07 | 0.25 | 0.70 | 22.79 | 23.34 | |||||
2020 | 14.77 | 30.70 | 111,520 | 3,373,172 | 1.96 | 0.25 | 0.70 | 11.03 | 11.53 | |||||
2019 | 13.30 | 27.53 | 118,572 | 3,220,456 | 2.07 | 0.25 | 0.70 | 23.09 | 23.64 | |||||
Value | ||||||||||||||
2023 | 68.54 | 68.54 | 95,345 | 6,535,265 | 2.36 | 0.25 | 0.25 | 8.83 | 8.83 | |||||
2022 | 62.98 | 62.98 | 105,637 | 6,653,475 | 2.14 | 0.25 | 0.25 | 0.29 | 0.29 | |||||
2021 | 62.80 | 62.80 | 85,633 | 5,377,811 | 1.75 | 0.25 | 0.25 | 24.20 | 24.20 | |||||
2020 | 50.57 | 50.57 | 89,226 | 4,511,716 | 2.32 | 0.25 | 0.25 | 0.72 | 0.72 | |||||
2019 | 50.20 | 50.20 | 93,818 | 4,709,770 | 2.11 | 0.25 | 0.25 | 26.72 | 26.72 | |||||
Mid Cap Value | ||||||||||||||
2023 | 39.95 | 47.54 | 40,187 | 1,610,869 | 2.31 | 0.25 | 0.70 | 5.40 | 5.87 | |||||
2022 | 37.73 | 45.11 | 40,578 | 1,535,902 | 2.29 | 0.25 | 0.70 | (1.88) | (1.44) | |||||
2021 | 38.29 | 45.97 | 48,386 | 1,858,331 | 1.15 | 0.25 | 0.70 | 22.35 | 22.90 | |||||
2020 | 31.15 | 37.57 | 51,199 | 1,600,453 | 1.84 | 0.25 | 0.70 | 0.50 | 0.96 | |||||
2019 | 30.86 | 37.38 | 52,160 | 1,614,392 | 2.06 | 0.25 | 0.70 | 28.25 | 28.83 |
FS-51 |
5. FINANCIAL HIGHLIGHTS, continued
At December 31 | For the Periods Ended December 31 | |||||||||||||
Net | Inv. | |||||||||||||
Unit | Assets | Income | Expense | Total | ||||||||||
Value ($) | Units | ($) | Ratio % | Ratio % | Return % | |||||||||
Min | Max | Min | Max | Min | Max | |||||||||
American Century, continued: | ||||||||||||||
International | ||||||||||||||
2023 | 29.33 | 29.33 | 22,634 | 663,956 | 1.40 | 0.25 | 0.25 | 12.29 | 12.29 | |||||
2022 | 26.12 | 26.12 | 27,726 | 724,280 | 1.45 | 0.25 | 0.25 | (24.94) | (24.94) | |||||
2021 | 34.80 | 34.80 | 26,120 | 909,059 | 0.15 | 0.25 | 0.25 | 8.48 | 8.48 | |||||
2020 | 32.08 | 32.08 | 26,198 | 840,519 | 0.48 | 0.25 | 0.25 | 25.56 | 25.56 | |||||
2019 | 23.68 | 25.55 | 26,701 | 682,260 | 0.87 | 0.25 | 0.75 | 8.60 | 28.10 | |||||
Scudder: | ||||||||||||||
Capital Growth | ||||||||||||||
2023 | 96.31 | 119.18 | 68,913 | 8,212,503 | 0.08 | 0.25 | 0.70 | 37.61 | 38.23 | |||||
2022 | 69.99 | 86.22 | 72,831 | 6,278,994 | 0.09 | 0.25 | 0.70 | (31.22) | (30.91) | |||||
2021 | 109.66 | 124.80 | 79,586 | 9,931,195 | 0.21 | 0.25 | 0.75 | 21.86 | 22.47 | |||||
2020 | 89.99 | 101.90 | 87,760 | 8,941,954 | 0.49 | 0.25 | 0.75 | 38.00 | 38.69 | |||||
2019 | 65.21 | 73.47 | 96,216 | 7,068,508 | 0.42 | 0.25 | 0.75 | 36.11 | 36.79 | |||||
International | ||||||||||||||
2023 | 24.21 | 24.21 | 104,710 | 2,534,966 | 3.31 | 0.25 | 0.25 | 18.65 | 18.65 | |||||
2022 | 20.40 | 20.40 | 114,725 | 2,340,862 | 3.26 | 0.25 | 0.25 | (13.40) | (13.40) | |||||
2021 | 23.56 | 23.56 | 122,170 | 2,878,624 | 2.42 | 0.25 | 0.25 | 8.96 | 8.96 | |||||
2020 | 21.62 | 21.62 | 126,135 | 2,727,533 | 3.58 | 0.25 | 0.25 | 2.35 | 2.35 | |||||
2019 | 21.13 | 21.13 | 141,463 | 2,988,615 | 2.99 | 0.25 | 0.25 | 21.47 | 21.47 | |||||
Money Market | ||||||||||||||
2023 | 16.65 | 16.65 | 326,865 | - | 4.62 | 0.25 | 0.25 | 4.49 | 4.49 | |||||
2022 | 15.94 | 15.94 | 336,723 | 5,367,197 | 1.15 | 0.25 | 0.25 | 1.06 | 1.06 | |||||
2021 | 15.77 | 15.77 | 344,887 | 5,439,833 | 0.01 | 0.25 | 0.25 | (0.24) | (0.24) | |||||
2020 | 15.81 | 15.81 | 386,657 | 6,113,297 | 0.19 | 0.25 | 0.25 | (0.02) | (0.02) | |||||
2019 | 15.81 | 15.81 | 225,898 | 3,572,194 | 1.81 | 0.25 | 0.25 | 1.52 | 1.52 | |||||
Mid Value | ||||||||||||||
2023 | 26.85 | 28.16 | 16,593 | 445,576 | 1.11 | 0.25 | 0.70 | 14.15 | 14.66 | |||||
2022 | 23.42 | 24.67 | 19,381 | 453,874 | 0.77 | 0.25 | 0.70 | (16.39) | (16.01) | |||||
2021 | 27.88 | 29.50 | 18,911 | 527,321 | 1.22 | 0.25 | 0.70 | 29.59 | 30.17 | |||||
2020 | 21.42 | 22.76 | 18,987 | 406,702 | 1.46 | 0.25 | 0.70 | (1.49) | (1.05) | |||||
2019 | 20.42 | 21.65 | 21,581 | 467,166 | 0.71 | 0.25 | 0.75 | 12.51 | 21.21 | |||||
Global | ||||||||||||||
2023 | 16.25 | 16.25 | 19,755 | 320,955 | 0.74 | 0.25 | 0.25 | 15.75 | 15.75 | |||||
2022 | 14.04 | 14.04 | 21,531 | 302,212 | 1.02 | 0.25 | 0.25 | (28.69) | (28.69) | |||||
2021 | 19.68 | 19.68 | 19,899 | 391,679 | 0.33 | 0.25 | 0.25 | 7.84 | 7.84 | |||||
2020 | 18.25 | 18.25 | 20,559 | 375,246 | 1.57 | 0.25 | 0.25 | 22.38 | 22.38 | |||||
2019 | 14.91 | 14.91 | 22,906 | 341,622 | 1.29 | 0.25 | 0.25 | 30.90 | 30.90 |
FS-52 |
5. FINANCIAL HIGHLIGHTS, continued
At December 31 | For the Periods Ended December 31 | |||||||||||||
Net | Inv. | |||||||||||||
Unit | Assets | Income | Expense | Total | ||||||||||
Value ($) | Units | ($) | Ratio % | Ratio % | Return % | |||||||||
Min | Max | Min | Max | Min | Max | |||||||||
Franklin Templeton: | ||||||||||||||
Growth Securities | ||||||||||||||
2023 | 23.73 | 23.73 | 14,750 | 349,998 | 3.33 | 0.25 | 0.25 | 20.71 | 20.71 | |||||
2022 | 19.66 | 19.66 | 14,465 | 284,343 | 0.16 | 0.25 | 0.25 | (11.72) | (11.72) | |||||
2021 | 22.27 | 22.27 | 13,876 | 308,985 | 1.10 | 0.25 | 0.25 | 4.61 | 4.61 | |||||
2020 | 21.29 | 21.29 | 14,166 | 301,551 | 2.91 | 0.25 | 0.25 | 5.53 | 5.53 | |||||
2019 | 20.17 | 20.17 | 14,228 | 286,980 | 2.72 | 0.25 | 0.25 | 14.87 | 14.87 | |||||
Foreign Securities | ||||||||||||||
2023 | 29.23 | 29.23 | 18,466 | 539,789 | 3.24 | 0.25 | 0.25 | 20.46 | 20.46 | |||||
2022 | 24.27 | 24.27 | 19,929 | 483,605 | 3.07 | 0.25 | 0.25 | (7.84) | (7.84) | |||||
2021 | 23.27 | 26.33 | 21,272 | 560,073 | 1.86 | 0.25 | 0.75 | 3.38 | 3.90 | |||||
2020 | 22.51 | 25.34 | 23,860 | 604,643 | 3.53 | 0.25 | 0.75 | (1.90) | (1.41) | |||||
2019 | 22.95 | 25.70 | 33,748 | 867,443 | 1.72 | 0.25 | 0.75 | 11.69 | 12.25 | |||||
Income | ||||||||||||||
2023 | 15.83 | 15.83 | 10,655 | 168,717 | 4.99 | 0.25 | 0.25 | 8.35 | 8.35 | |||||
2022 | 14.61 | 14.61 | 11,506 | 168,147 | 6.58 | 0.25 | 0.25 | (5.11) | (5.11) | |||||
2021 | - | - | - | - | - | - | - | - | - | |||||
2020 | 13.31 | 13.31 | - | - | - | 0.25 | 0.25 | (12.96) | (12.96) | |||||
2019 | 13.25 | 13.25 | 1,076 | 14,259 | 5.50 | 0.25 | 0.25 | 15.77 | 15.77 | |||||
Global Bond | ||||||||||||||
2023 | 9.05 | 16.27 | 94,187 | 863,685 | - | 0.25 | 0.70 | 2.17 | 2.63 | |||||
2022 | 8.81 | 15.92 | 89,978 | 802,991 | - | 0.25 | 0.70 | (5.61) | (5.19) | |||||
2021 | 9.30 | 16.87 | 129,461 | 1,215,223 | - | 0.25 | 0.70 | (5.65) | (5.23) | |||||
2020 | 9.81 | 17.88 | 109,229 | 1,081,503 | 7.68 | 0.25 | 0.70 | (5.94) | (5.52) | |||||
2019 | 10.38 | 19.01 | 102,739 | 1,075,450 | 6.83 | 0.25 | 0.70 | 1.30 | 1.76 | |||||
AIM: | ||||||||||||||
American Value | ||||||||||||||
2023 | 11.87 | 11.87 | 16,682 | 198,077 | 0.62 | 0.25 | 0.25 | 15.31 | 15.31 | |||||
2022 | 10.30 | 10.30 | 19,079 | 196,460 | 0.76 | 0.25 | 0.25 | (2.86) | (2.86) | |||||
2021 | 10.60 | 10.60 | 19,489 | 206,580 | 0.44 | 0.25 | 0.25 | 6.00 | 6.00 | |||||
2020 | - | - | - | - | - | - | - | - | - | |||||
2019 | - | - | - | - | - | - | - | - | - | |||||
American Franchise | ||||||||||||||
2023 | 40.16 | 40.16 | 148,735 | 5,973,246 | - | 0.25 | 0.25 | 40.58 | 40.58 | |||||
2022 | 28.57 | 28.57 | 160,074 | 4,573,100 | - | 0.25 | 0.25 | (31.28) | (31.28) | |||||
2021 | 41.58 | 41.58 | 162,444 | 6,753,654 | - | 0.25 | 0.25 | 11.65 | 11.65 | |||||
2020 | 37.24 | 37.24 | 177,655 | 6,615,555 | 0.07 | 0.25 | 0.25 | 42.00 | 42.00 | |||||
2019 | 26.22 | 26.22 | 195,345 | 5,122,861 | - | 0.25 | 0.25 | 36.41 | 36.41 |
FS-53 |
5. FINANCIAL HIGHLIGHTS, continued
At December 31 | For the Periods Ended December 31 | |||||||||||||
Net | Inv. | |||||||||||||
Unit | Assets | Income | Expense | Total | ||||||||||
Value ($) | Units | ($) | Ratio % | Ratio % | Return % | |||||||||
Min | Max | Min | Max | Min | Max | |||||||||
AIM, continued: | ||||||||||||||
Intl Growth | ||||||||||||||
2023 | 18.14 | 52.48 | 73,185 | 1,351,272 | 0.20 | 0.25 | 0.70 | 17.33 | 17.85 | |||||
2022 | 15.40 | 44.73 | 78,085 | 1,221,840 | 1.64 | 0.25 | 0.70 | (18.87) | (18.51) | |||||
2021 | 18.89 | 55.13 | 99,493 | 1,903,475 | 1.32 | 0.25 | 0.70 | 5.15 | 5.62 | |||||
2020 | 17.89 | 52.43 | 93,767 | 1,699,227 | 2.42 | 0.25 | 0.70 | 13.20 | 13.71 | |||||
2019 | 14.84 | 15.73 | 96,817 | 1,542,254 | 1.56 | 0.25 | 0.75 | 9.03 | 28.25 | |||||
Global | ||||||||||||||
2023 | 21.44 | 26.69 | 5,219 | 138,774 | 1.51 | 0.25 | 0.70 | 8.29 | 8.78 | |||||
2022 | 19.80 | 24.54 | 5,096 | 124,631 | 2.67 | 0.25 | 0.70 | (25.46) | (25.12) | |||||
2021 | 26.56 | 32.77 | 5,764 | 188,353 | 2.69 | 0.25 | 0.70 | 24.84 | 25.40 | |||||
2020 | 21.27 | 26.13 | 6,062 | 158,030 | 4.98 | 0.25 | 0.70 | (12.93) | (12.54) | |||||
2019 | 24.43 | 29.88 | 6,201 | 184,902 | 4.59 | 0.25 | 0.70 | 22.14 | 22.69 | |||||
Small Cap | ||||||||||||||
2023 | 43.71 | 43.71 | 140 | 6,114 | - | 0.70 | 0.70 | 15.77 | 15.77 | |||||
2022 | 37.76 | 37.76 | 144 | 5,442 | - | 0.70 | 0.70 | (21.06) | (21.06) | |||||
2021 | 47.83 | 47.83 | 148 | 7,098 | 0.17 | 0.70 | 0.70 | 19.56 | 19.56 | |||||
2020 | 40.00 | 40.00 | 147 | 5,875 | 0.41 | 0.70 | 0.70 | 26.36 | 26.36 | |||||
2019 | 31.66 | 31.66 | 95 | 2,994 | - | 0.70 | 0.70 | 25.72 | 25.72 | |||||
Equity & Income | ||||||||||||||
2023 | 24.92 | 24.92 | 846 | 21,081 | 2.04 | 0.25 | 0.25 | 10.28 | 10.28 | |||||
2022 | 22.60 | 22.60 | 700 | 15,809 | 2.42 | 0.25 | 0.25 | (7.74) | (7.74) | |||||
2021 | 24.50 | 24.50 | 390 | 9,547 | 1.87 | 0.25 | 0.25 | 18.36 | 18.36 | |||||
2020 | 20.70 | 20.70 | 394 | 8,143 | 2.52 | 0.25 | 0.25 | 9.68 | 9.68 | |||||
2019 | 18.87 | 18.87 | 412 | 7,779 | 2.44 | 0.25 | 0.25 | 20.06 | 20.06 | |||||
Cap App | ||||||||||||||
2023 | 50.61 | 50.61 | 6,846 | 346,491 | - | 0.25 | 0.25 | 35.04 | 35.04 | |||||
2022 | 37.48 | 37.48 | 7,481 | 280,371 | - | 0.25 | 0.25 | (30.96) | (30.96) | |||||
2021 | 54.28 | 54.28 | 8,775 | 476,294 | - | 0.25 | 0.25 | 22.26 | 22.26 | |||||
2020 | 44.39 | 44.39 | 8,627 | 383,018 | - | 0.25 | 0.25 | 36.25 | 36.25 | |||||
2019 | 32.58 | 32.58 | 8,904 | 290,127 | 0.06 | 0.25 | 0.25 | 35.86 | 35.86 | |||||
Global Securities | ||||||||||||||
2023 | 47.77 | 94.16 | 135,701 | 6,482,975 | 0.23 | 0.25 | 0.70 | 33.80 | 34.40 | |||||
2022 | 35.54 | 70.37 | 142,953 | 5,081,463 | - | 0.25 | 0.70 | (32.24) | (31.94) | |||||
2021 | 52.22 | 103.85 | 147,955 | 7,726,847 | - | 0.25 | 0.70 | 14.69 | 15.20 | |||||
2020 | 45.33 | 90.55 | 150,464 | 6,820,997 | 0.69 | 0.25 | 0.70 | 26.75 | 27.32 | |||||
2019 | 35.60 | 71.44 | 164,357 | 5,852,105 | 0.91 | 0.25 | 0.70 | 30.87 | 31.46 |
FS-54 |
5. FINANCIAL HIGHLIGHTS, continued
At December 31 | For the Periods Ended December 31 | |||||||||||||
Net | Inv. | |||||||||||||
Unit | Assets | Income | Expense | Total | ||||||||||
Value ($) | Units | ($) | Ratio % | Ratio % | Return % | |||||||||
Min | Max | Min | Max | Min | Max | |||||||||
AIM, continued: | ||||||||||||||
Growth & Income | ||||||||||||||
2023 | 41.06 | 41.06 | 98,517 | 4,045,349 | 0.86 | 0.25 | 0.25 | 22.91 | 22.91 | |||||
2022 | 33.41 | 33.41 | 102,020 | 3,408,325 | 1.47 | 0.25 | 0.25 | (20.33) | (20.33) | |||||
2021 | 41.93 | 41.93 | 109,579 | 4,595,165 | 0.70 | 0.25 | 0.25 | 27.25 | 27.25 | |||||
2020 | 32.95 | 32.95 | 119,159 | 3,926,791 | 1.51 | 0.25 | 0.25 | 13.66 | 13.66 | |||||
2019 | 28.99 | 28.99 | 125,582 | 3,641,194 | 1.07 | 0.25 | 0.25 | 31.75 | 31.75 | |||||
Van Kampen: | ||||||||||||||
U.S. Real Estate | ||||||||||||||
2023 | 22.56 | 45.51 | 64,340 | 2,876,680 | 2.26 | 0.25 | 0.70 | 13.72 | 14.23 | |||||
2022 | 19.84 | 39.84 | 67,504 | 2,648,905 | 1.20 | 0.25 | 0.70 | (27.56) | (27.24) | |||||
2021 | 27.39 | 54.76 | 75,950 | 4,108,711 | 2.00 | 0.25 | 0.70 | 38.83 | 39.45 | |||||
2020 | 19.73 | 39.27 | 86,642 | 3,355,337 | 2.89 | 0.25 | 0.70 | (17.43) | (17.06) | |||||
2019 | 43.55 | 47.34 | 80,410 | 3,767,345 | 1.86 | 0.25 | 0.75 | 12.86 | 18.64 | |||||
Emerging Markets | ||||||||||||||
2023 | 10.54 | 16.24 | 165,235 | 1,751,777 | 1.60 | 0.25 | 0.70 | 11.20 | 11.69 | |||||
2022 | 9.43 | 14.61 | 173,464 | 1,645,745 | 0.44 | 0.25 | 0.70 | (25.60) | (25.27) | |||||
2021 | 12.62 | 19.63 | 169,913 | 2,156,229 | 0.86 | 0.25 | 0.70 | 2.27 | 2.73 | |||||
2020 | 12.29 | 19.20 | 162,671 | 2,009,838 | 1.38 | 0.25 | 0.70 | 13.64 | 14.15 | |||||
2019 | 10.76 | 16.89 | 187,819 | 2,031,265 | 1.06 | 0.25 | 0.70 | 18.75 | 19.29 | |||||
Neuberger Berman: | ||||||||||||||
Regency | ||||||||||||||
2023 | 26.82 | 26.82 | 6,700 | 179,716 | 1.03 | 0.25 | 0.25 | 10.73 | 10.73 | |||||
2022 | 24.22 | 24.22 | 6,946 | 168,240 | 0.59 | 0.25 | 0.25 | (9.98) | (9.98) | |||||
2021 | 26.91 | 26.91 | 7,018 | 188,837 | 0.61 | 0.25 | 0.25 | 32.47 | 32.47 | |||||
2020 | 20.31 | 20.31 | 7,740 | 157,234 | 1.17 | 0.25 | 0.25 | (2.86) | (2.86) | |||||
2019 | 20.91 | 20.91 | 11,792 | 246,594 | 0.72 | 0.25 | 0.25 | 16.45 | 16.45 | |||||
Equity | ||||||||||||||
2023 | 16.53 | 42.25 | 146,339 | 2,422,001 | 0.34 | 0.25 | 0.70 | 26.02 | 26.58 | |||||
2022 | 13.06 | 33.53 | 164,415 | 2,149,375 | 0.43 | 0.25 | 0.70 | (19.02) | (18.66) | |||||
2021 | 16.06 | 41.40 | 206,057 | 3,310,747 | 0.38 | 0.25 | 0.70 | 22.62 | 23.17 | |||||
2020 | 13.04 | 33.77 | 224,915 | 2,933,694 | 0.62 | 0.25 | 0.70 | 18.73 | 19.26 | |||||
2019 | 10.93 | 28.44 | 238,280 | 2,605,806 | 0.42 | 0.25 | 0.70 | 8.89 | 9.34 |
FS-55 |
5. FINANCIAL HIGHLIGHTS, continued
At December 31 | For the Periods Ended December 31 | |||||||||||||
Net | Inv. | |||||||||||||
Unit | Assets | Income | Expense | Total | ||||||||||
Value ($) | Units | ($) | Ratio % | Ratio % | Return % | |||||||||
Min | Max | Min | Max | Min | Max | |||||||||
MFS: | ||||||||||||||
Growth | ||||||||||||||
2023 | 111.34 | 111.34 | 82,800 | 9,218,656 | - | 0.25 | 0.25 | 35.53 | 35.53 | |||||
2022 | 82.15 | 82.15 | 91,570 | 7,522,629 | - | 0.25 | 0.25 | (31.81) | (31.81) | |||||
2021 | 106.48 | 120.47 | 100,231 | 12,074,373 | - | 0.25 | 0.75 | 22.61 | 23.22 | |||||
2020 | 86.85 | 97.76 | 106,780 | 10,438,958 | - | 0.25 | 0.75 | 30.87 | 31.53 | |||||
2019 | 66.36 | 74.33 | 118,760 | 8,827,213 | - | 0.25 | 0.75 | 37.12 | 37.80 | |||||
Investor Trust | ||||||||||||||
2023 | 85.32 | 85.32 | 73,700 | 6,288,017 | 0.73 | 0.25 | 0.25 | 18.68 | 18.68 | |||||
2022 | 71.89 | 71.89 | 78,840 | 5,667,686 | 0.67 | 0.25 | 0.25 | (16.70) | (16.70) | |||||
2021 | 86.30 | 86.30 | 85,080 | 7,342,234 | 0.62 | 0.25 | 0.25 | 26.50 | 26.50 | |||||
2020 | 68.22 | 68.22 | 93,819 | 6,400,428 | 0.63 | 0.25 | 0.25 | 13.58 | 13.58 | |||||
2019 | 60.06 | 60.06 | 101,348 | 6,087,252 | 0.68 | 0.25 | 0.25 | 31.25 | 31.25 | |||||
New Discovery | ||||||||||||||
2023 | 45.94 | 45.94 | 78,236 | 3,593,783 | - | 0.25 | 0.25 | 14.13 | 14.13 | |||||
2022 | 40.25 | 40.25 | 83,697 | 3,368,715 | - | 0.25 | 0.25 | (29.93) | (29.93) | |||||
2021 | 57.44 | 57.44 | 85,854 | 4,931,777 | - | 0.25 | 0.25 | 1.55 | 1.55 | |||||
2020 | 56.57 | 56.57 | 92,023 | 5,205,715 | - | 0.25 | 0.25 | 45.52 | 45.52 | |||||
2019 | 38.87 | 38.87 | 116,560 | 4,531,111 | - | 0.25 | 0.25 | 41.35 | 41.35 | |||||
Total Return | ||||||||||||||
2023 | 42.34 | 42.34 | 90,211 | 3,819,103 | 2.05 | 0.25 | 0.25 | 10.17 | 10.17 | |||||
2022 | 38.43 | 38.43 | 94,190 | 3,619,553 | 1.71 | 0.25 | 0.25 | (9.81) | (9.81) | |||||
2021 | 42.61 | 42.61 | 115,390 | 4,916,382 | 1.89 | 0.25 | 0.25 | 13.83 | 13.83 | |||||
2020 | 37.43 | 37.43 | 140,136 | 5,245,228 | 2.31 | 0.25 | 0.25 | 9.54 | 9.54 | |||||
2019 | 34.17 | 34.17 | 148,595 | 5,077,555 | 2.32 | 0.25 | 0.25 | 20.08 | 20.08 | |||||
Utilities | ||||||||||||||
2023 | 25.32 | 25.32 | 9,229 | 233,674 | 3.46 | 0.25 | 0.25 | (2.35) | (2.35) | |||||
2022 | 25.93 | 25.93 | 10,577 | 274,232 | 2.54 | 0.25 | 0.25 | 0.50 | 0.50 | |||||
2021 | 25.80 | 25.80 | 9,589 | 247,383 | 1.74 | 0.25 | 0.25 | 13.81 | 13.81 | |||||
2020 | 22.67 | 22.67 | 9,553 | 216,564 | 2.28 | 0.25 | 0.25 | 5.64 | 5.64 | |||||
2019 | 21.46 | 21.46 | 14,373 | 308,420 | 4.02 | 0.25 | 0.25 | 24.76 | 24.76 | |||||
Value | ||||||||||||||
2023 | 42.91 | 42.91 | 21 | 920 | 1.69 | 0.70 | 0.70 | 7.18 | 7.18 | |||||
2022 | 40.04 | 40.04 | 20 | 800 | 1.45 | 0.70 | 0.70 | (6.56) | (6.56) | |||||
2021 | 42.85 | 42.85 | 19 | 795 | 1.43 | 0.70 | 0.70 | 24.58 | 24.58 | |||||
2020 | 34.39 | 34.39 | 17 | 589 | 1.61 | 0.70 | 0.70 | 2.75 | 2.75 | |||||
2019 | 33.47 | 33.47 | 15 | 516 | 2.26 | 0.70 | 0.70 | 28.90 | 28.90 |
FS-56 |
5. FINANCIAL HIGHLIGHTS, continued
At December 31 | For the Periods Ended December 31 | |||||||||||||
Net | Inv. | |||||||||||||
Unit | Assets | Income | Expense | Total | ||||||||||
Value ($) | Units | ($) | Ratio % | Ratio % | Return % | |||||||||
Min | Max | Min | Max | Min | Max | |||||||||
MFS, continued: | ||||||||||||||
Global Real Estate | ||||||||||||||
2023 | - | - | - | - | - | - | - | - | - | |||||
2022 | - | - | - | - | - | - | - | - | - | |||||
2021 | - | - | - | - | - | - | - | - | - | |||||
2020 | - | - | - | - | - | - | - | - | - | |||||
2019 | - | - | - | - | - | - | - | - | - | |||||
High Yield | ||||||||||||||
2023 | 14.75 | 14.75 | 123,695 | 1,824,785 | 5.31 | 0.25 | 0.25 | 12.13 | 12.13 | |||||
2022 | 13.16 | 13.16 | 157,441 | 2,071,385 | 5.51 | 0.25 | 0.25 | (10.74) | (10.74) | |||||
2021 | 14.74 | 14.74 | 184,737 | 2,722,895 | 5.74 | 0.25 | 0.25 | 3.23 | 3.23 | |||||
2020 | 14.28 | 14.28 | 143,034 | 2,042,280 | 5.50 | 0.25 | 0.25 | 4.82 | 4.82 | |||||
2019 | 13.62 | 13.62 | 154,310 | 2,101,918 | 5.62 | 0.25 | 0.25 | 14.52 | 14.52 | |||||
Research | ||||||||||||||
2023 | 14.78 | 22.08 | 122,519 | 1,821,764 | 1.06 | 0.25 | 0.70 | 12.23 | 12.73 | |||||
2022 | 13.11 | 19.67 | 138,114 | 1,820,286 | 1.76 | 0.25 | 0.70 | (18.15) | (17.78) | |||||
2021 | 15.94 | 24.03 | 171,376 | 2,744,206 | 0.83 | 0.25 | 0.70 | 10.79 | 11.29 | |||||
2020 | 14.32 | 21.69 | 162,005 | 2,332,431 | 2.07 | 0.25 | 0.70 | 12.16 | 12.66 | |||||
2019 | 12.71 | 19.34 | 177,184 | 2,263,171 | 1.48 | 0.25 | 0.70 | 27.15 | 27.72 | |||||
Seligman: | ||||||||||||||
Global Tech | ||||||||||||||
2023 | 75.89 | 75.89 | 29,059 | 2,205,373 | - | 0.25 | 0.25 | 44.51 | 44.51 | |||||
2022 | 52.52 | 52.52 | 31,856 | 1,673,012 | - | 0.25 | 0.25 | (32.03) | (32.03) | |||||
2021 | 77.26 | 77.26 | 30,788 | 2,378,885 | 0.27 | 0.25 | 0.25 | 38.34 | 38.34 | |||||
2020 | 55.85 | 55.85 | 35,703 | 1,994,067 | - | 0.25 | 0.25 | 45.43 | 45.43 | |||||
2019 | 38.40 | 38.40 | 34,840 | 1,337,953 | - | 0.25 | 0.25 | 54.58 | 54.58 | |||||
Smaller Value | ||||||||||||||
2023 | 27.05 | 27.05 | 129,717 | 3,509,155 | - | 0.25 | 0.25 | 12.57 | 12.57 | |||||
2022 | 24.03 | 24.03 | 142,746 | 3,430,546 | - | 0.25 | 0.25 | (15.14) | (15.14) | |||||
2021 | 28.32 | 28.32 | 153,599 | 4,349,919 | - | 0.25 | 0.25 | 30.29 | 30.29 | |||||
2020 | 21.74 | 21.74 | 165,465 | 3,596,550 | - | 0.25 | 0.25 | 8.65 | 8.65 | |||||
2019 | 20.01 | 20.01 | 189,511 | 3,791,356 | - | 0.25 | 0.25 | 17.15 | 17.15 |
FS-57 |
5. FINANCIAL HIGHLIGHTS, continued
At December 31 | For the Periods Ended December 31 | |||||||||||||
Net | Inv. | |||||||||||||
Unit | Assets | Income | Expense | Total | ||||||||||
Value ($) | Units | ($) | Ratio % | Ratio % | Return % | |||||||||
Min | Max | Min | Max | Min | Max | |||||||||
Summit: | ||||||||||||||
EAFE Intl. | ||||||||||||||
2023 | 32.67 | 128.48 | 153,031 | 5,029,326 | 2.98 | 0.25 | 0.70 | 16.96 | 17.48 | |||||
2022 | 27.81 | 109.85 | 161,215 | 4,508,988 | 3.43 | 0.25 | 0.70 | (15.18) | (14.79) | |||||
2021 | 32.64 | 129.50 | 173,410 | 5,690,363 | 1.80 | 0.25 | 0.70 | 10.10 | 10.60 | |||||
2020 | 29.51 | 117.62 | 165,227 | 4,906,020 | 3.37 | 0.25 | 0.70 | 7.02 | 7.50 | |||||
2019 | 27.45 | 109.90 | 179,109 | 4,942,990 | 2.64 | 0.25 | 0.70 | 20.42 | 20.96 | |||||
Barclays | ||||||||||||||
2023 | 17.20 | 66.43 | 330,216 | 5,708,658 | 2.71 | 0.25 | 0.70 | 4.74 | 5.21 | |||||
2022 | 16.35 | 63.42 | 345,743 | 5,677,343 | 2.62 | 0.25 | 0.70 | (13.13) | (12.74) | |||||
2021 | 18.74 | 73.01 | 388,418 | 7,307,317 | 2.43 | 0.25 | 0.70 | (2.50) | (2.07) | |||||
2020 | 19.14 | 74.89 | 361,305 | 6,939,021 | 2.80 | 0.25 | 0.70 | 6.59 | 7.07 | |||||
2019 | 17.87 | 70.26 | 382,844 | 6,864,135 | 3.17 | 0.25 | 0.70 | 7.66 | 8.14 | |||||
S&P 500 | ||||||||||||||
2023 | 105.82 | 362.05 | 503,252 | 53,335,557 | 1.37 | 0.25 | 0.70 | 25.05 | 25.61 | |||||
2022 | 84.25 | 289.53 | 551,697 | 46,546,200 | 1.24 | 0.25 | 0.70 | (18.91) | (18.54) | |||||
2021 | 90.88 | 103.42 | 566,851 | 58,709,947 | 1.33 | 0.25 | 0.75 | 27.46 | 28.10 | |||||
2020 | 71.30 | 80.74 | 591,309 | 47,818,980 | 1.66 | 0.25 | 0.75 | 17.22 | 17.81 | |||||
2019 | 60.83 | 68.54 | 657,668 | 45,140,031 | 1.80 | 0.25 | 0.75 | 30.17 | 30.82 | |||||
Nasdaq 100 | ||||||||||||||
2023 | 45.05 | 223.70 | 257,255 | 11,616,251 | 0.33 | 0.25 | 0.70 | 53.33 | 54.02 | |||||
2022 | 29.25 | 145.90 | 271,769 | 7,971,049 | 0.18 | 0.25 | 0.70 | (33.11) | (32.81) | |||||
2021 | 43.53 | 218.12 | 314,223 | 13,706,582 | 0.27 | 0.25 | 0.70 | 25.99 | 26.56 | |||||
2020 | 34.40 | 173.12 | 352,443 | 12,149,231 | 0.46 | 0.25 | 0.70 | 47.19 | 47.86 | |||||
2019 | 23.26 | 117.62 | 405,690 | 9,460,831 | 0.52 | 0.25 | 0.70 | 37.81 | 38.43 | |||||
Russell | ||||||||||||||
2023 | 46.98 | 172.92 | 177,632 | 8,371,239 | 0.89 | 0.25 | 0.70 | 15.79 | 16.31 | |||||
2022 | 40.39 | 149.34 | 182,649 | 7,398,429 | 0.83 | 0.25 | 0.70 | (21.07) | (20.71) | |||||
2021 | 50.95 | 189.20 | 191,562 | 9,784,788 | 0.75 | 0.25 | 0.70 | 13.73 | 14.24 | |||||
2020 | 44.59 | 166.36 | 179,615 | 8,034,010 | 1.06 | 0.25 | 0.70 | 18.81 | 19.34 | |||||
2019 | 33.04 | 37.37 | 202,735 | 7,595,827 | 0.93 | 0.25 | 0.75 | 14.55 | 24.76 | |||||
Midcap 400 | ||||||||||||||
2023 | 85.03 | 226.50 | 151,509 | 12,912,587 | 1.22 | 0.25 | 0.70 | 15.31 | 15.83 | |||||
2022 | 73.41 | 196.42 | 165,014 | 12,138,448 | 0.94 | 0.25 | 0.70 | (13.94) | (13.55) | |||||
2021 | 76.07 | 84.91 | 168,374 | 14,327,744 | 0.83 | 0.25 | 0.75 | 19.08 | 24.10 | |||||
2020 | 61.61 | 68.42 | 178,969 | 12,273,614 | 1.21 | 0.25 | 0.75 | 12.47 | 13.04 | |||||
2019 | 54.77 | 60.53 | 203,691 | 12,352,717 | 1.17 | 0.25 | 0.75 | 24.89 | 25.52 |
FS-58 |
5. FINANCIAL HIGHLIGHTS, continued
At December 31 | For the Periods Ended December 31 | |||||||||||||
Net | Inv. | |||||||||||||
Unit | Assets | Income | Expense | Total | ||||||||||
Value ($) | Units | ($) | Ratio % | Ratio % | Return % | |||||||||
Min | Max | Min | Max | Min | Max | |||||||||
Summit, continued: | ||||||||||||||
Moderate | ||||||||||||||
2023 | 14.78 | 22.07 | 47,764 | 707,599 | 1.46 | 0.25 | 0.70 | 11.15 | 11.64 | |||||
2022 | 13.24 | 19.86 | 48,460 | 642,931 | 1.08 | 0.25 | 0.70 | (14.77) | (14.39) | |||||
2021 | 15.47 | 23.30 | 50,172 | 777,481 | 1.06 | 0.25 | 0.70 | 9.30 | 9.79 | |||||
2020 | 14.09 | 21.32 | 50,921 | 719,560 | 1.74 | 0.25 | 0.70 | 4.62 | 5.09 | |||||
2019 | 13.41 | 20.37 | 54,849 | 737,144 | 1.62 | 0.25 | 0.70 | 16.20 | 16.72 | |||||
Mod. Growth | ||||||||||||||
2023 | 14.37 | 23.10 | 73,299 | 1,070,278 | 1.38 | 0.25 | 0.70 | 13.00 | 13.50 | |||||
2022 | 12.66 | 20.44 | 77,148 | 991,115 | 0.92 | 0.25 | 0.70 | (15.20) | (14.82) | |||||
2021 | 14.86 | 24.11 | 113,817 | 1,709,470 | 1.01 | 0.25 | 0.70 | 12.85 | 13.36 | |||||
2020 | 13.11 | 21.36 | 111,988 | 1,484,114 | 1.69 | 0.25 | 0.70 | 3.03 | 3.49 | |||||
2019 | 12.67 | 20.73 | 105,671 | 1,352,646 | 1.45 | 0.25 | 0.70 | 17.74 | 18.27 | |||||
Calvert: | ||||||||||||||
Balanced | ||||||||||||||
2023 | 25.46 | 25.46 | 33,120 | 843,202 | 1.56 | 0.25 | 0.25 | 16.53 | 16.53 | |||||
2022 | 21.85 | 21.85 | 35,840 | 783,028 | 1.22 | 0.25 | 0.25 | (15.62) | (15.62) | |||||
2021 | 25.89 | 25.89 | 36,453 | 943,889 | 1.20 | 0.25 | 0.25 | 14.83 | 14.83 | |||||
2020 | 22.55 | 22.55 | 45,187 | 1,018,933 | 1.48 | 0.25 | 0.25 | 14.97 | 14.97 | |||||
2019 | 19.61 | 19.61 | 49,312 | 967,186 | 1.56 | 0.25 | 0.25 | 24.09 | 24.09 | |||||
Fidelity: | ||||||||||||||
Contrafund IC | ||||||||||||||
2023 | 43.90 | 99.94 | 58,238 | 2,559,095 | 0.50 | 0.25 | 0.70 | 32.53 | 33.12 | |||||
2022 | 32.97 | 75.41 | 59,845 | 1,975,354 | 0.50 | 0.25 | 0.70 | (26.82) | (26.50) | |||||
2021 | 44.86 | 103.05 | 63,482 | 2,850,453 | 0.06 | 0.25 | 0.70 | 26.95 | 27.52 | |||||
2020 | 35.18 | 81.18 | 68,039 | 2,395,642 | 0.26 | 0.25 | 0.70 | 29.66 | 30.24 | |||||
2019 | 25.35 | 27.01 | 89,790 | 2,426,858 | 0.46 | 0.25 | 0.75 | 11.26 | 31.25 | |||||
Equity Inc. IC | ||||||||||||||
2023 | 27.37 | 27.37 | 18,599 | 508,994 | 2.05 | 0.25 | 0.25 | 10.37 | 10.37 | |||||
2022 | 24.79 | 24.79 | 17,010 | 421,745 | 2.05 | 0.25 | 0.25 | (5.19) | (5.19) | |||||
2021 | 26.15 | 26.15 | 13,088 | 342,293 | 1.64 | 0.25 | 0.25 | 24.58 | 24.58 | |||||
2020 | 20.99 | 20.99 | 12,819 | 269,116 | 1.77 | 0.25 | 0.25 | 6.43 | 6.43 | |||||
2019 | 19.73 | 19.73 | 13,819 | 272,570 | 1.95 | 0.25 | 0.25 | 27.12 | 27.12 | |||||
High Inc. IC | ||||||||||||||
2023 | 11.64 | 20.54 | 90,943 | 1,835,988 | 5.64 | 0.25 | 0.70 | 9.71 | 10.20 | |||||
2022 | 10.61 | 18.64 | 93,426 | 1,713,905 | 4.66 | 0.25 | 0.70 | (11.99) | (11.60) | |||||
2021 | 12.05 | 21.08 | 118,732 | 2,470,196 | 5.41 | 0.25 | 0.70 | 3.69 | 4.15 | |||||
2020 | 11.63 | 20.24 | 114,331 | 2,284,398 | 5.18 | 0.25 | 0.70 | 2.03 | 2.49 | |||||
2019 | 18.54 | 19.75 | 114,861 | 2,242,643 | 5.24 | 0.25 | 0.75 | 5.84 | 14.82 |
FS-59 |
5. FINANCIAL HIGHLIGHTS, continued
At December 31 | For the Periods Ended December 31 | |||||||||||||
Net | Inv. | |||||||||||||
Unit | Assets | Income | Expense | Total | ||||||||||
Value ($) | Units | ($) | Ratio % | Ratio % | Return % | |||||||||
Min | Max | Min | Max | Min | Max | |||||||||
Fidelity, continued: | ||||||||||||||
Bond IC | ||||||||||||||
2023 | 11.51 | 18.69 | 165,085 | 1,912,948 | 2.69 | 0.25 | 0.70 | 5.47 | 5.94 | |||||
2022 | 10.86 | 17.72 | 121,564 | 1,331,851 | 2.10 | 0.25 | 0.70 | (13.56) | (13.18) | |||||
2021 | 12.51 | 20.50 | 152,929 | 1,926,938 | 1.98 | 0.25 | 0.70 | (1.30) | (0.85) | |||||
2020 | 12.62 | 20.77 | 136,424 | 1,733,601 | 2.29 | 0.25 | 0.70 | 8.63 | 9.12 | |||||
2019 | 11.56 | 19.12 | 145,096 | 1,688,415 | 2.77 | 0.25 | 0.70 | 8.90 | 9.39 | |||||
Mid Cap IC | ||||||||||||||
2023 | 49.69 | 91.88 | 11,532 | 576,079 | 0.62 | 0.25 | 0.70 | 14.28 | 14.79 | |||||
2022 | 43.29 | 80.40 | 12,550 | 545,793 | 0.48 | 0.25 | 0.70 | (15.34) | (14.96) | |||||
2021 | 50.90 | 94.96 | 13,616 | 695,959 | 0.62 | 0.25 | 0.70 | 24.73 | 25.29 | |||||
2020 | 40.63 | 76.13 | 14,424 | 588,215 | 0.64 | 0.25 | 0.70 | 17.37 | 17.89 | |||||
2019 | 34.46 | 64.87 | 17,140 | 592,345 | 0.88 | 0.25 | 0.70 | 22.59 | 23.14 | |||||
Overseas IC | ||||||||||||||
2023 | - | - | - | - | - | - | - | - | - | |||||
2022 | - | - | - | - | - | - | - | - | - | |||||
2021 | - | - | - | - | - | - | - | - | - | |||||
2020 | - | - | - | - | - | - | - | - | - | |||||
2019 | - | - | - | - | - | - | - | - | - | |||||
Strategic IC | ||||||||||||||
2023 | - | - | - | - | - | - | - | - | - | |||||
2022 | - | - | - | - | - | - | - | - | - | |||||
2021 | - | - | - | - | - | - | - | - | - | |||||
2020 | - | - | - | - | - | - | - | - | - | |||||
2019 | - | - | - | - | - | - | - | - | - | |||||
Money Market | ||||||||||||||
2023 | 1.04 | 1.04 | 18,385 | 19,102 | 4.79 | 0.70 | 0.70 | 4.17 | 4.17 | |||||
2022 | 1.00 | 1.00 | 17,318 | 17,273 | 1.45 | 0.70 | 0.70 | 0.73 | 0.73 | |||||
2021 | 0.99 | 0.99 | 16,181 | 16,022 | 0.01 | 0.70 | 0.70 | (0.69) | (0.69) | |||||
2020 | 1.00 | 1.00 | 15,501 | 15,456 | 0.35 | 0.70 | 0.70 | (0.38) | (0.38) | |||||
2019 | 1.00 | 1.00 | 18,936 | 18,953 | 2.00 | 0.70 | 0.70 | 1.31 | 1.31 | |||||
Third Avenue: | ||||||||||||||
Value | ||||||||||||||
2023 | 17.23 | 38.79 | 41,802 | 720,749 | 2.32 | 0.25 | 0.70 | 19.97 | 20.51 | |||||
2022 | 14.30 | 32.33 | 46,717 | 668,357 | 1.46 | 0.25 | 0.70 | 15.30 | 15.82 | |||||
2021 | 12.35 | 28.04 | 51,934 | 641,468 | 0.68 | 0.25 | 0.70 | 21.22 | 21.76 | |||||
2020 | 10.14 | 23.13 | 56,899 | 577,163 | 2.69 | 0.25 | 0.70 | (3.08) | (2.64) | |||||
2019 | 10.41 | 23.87 | 56,183 | 585,338 | 0.27 | 0.25 | 0.70 | 11.68 | 12.18 |
FS-60 |
5. FINANCIAL HIGHLIGHTS, continued
At December 31 | For the Periods Ended December 31 | |||||||||||||
Net | Inv. | |||||||||||||
Unit | Assets | Income | Expense | Total | ||||||||||
Value ($) | Units | ($) | Ratio % | Ratio % | Return % | |||||||||
Min | Max | Min | Max | Min | Max | |||||||||
T. Rowe: | ||||||||||||||
Blue Chip | ||||||||||||||
2023 | 51.22 | 52.08 | 73,896 | 3,785,709 | - | 0.25 | 0.70 | 47.92 | 48.59 | |||||
2022 | 34.47 | 35.21 | 90,310 | 3,113,870 | - | 0.25 | 0.70 | (39.09) | (38.82) | |||||
2021 | 56.34 | 57.80 | 96,471 | 5,436,401 | - | 0.25 | 0.70 | 16.51 | 17.04 | |||||
2020 | 48.14 | 49.61 | 110,599 | 5,325,420 | - | 0.25 | 0.70 | 32.98 | 33.58 | |||||
2019 | 36.04 | 37.30 | 128,892 | 4,646,189 | - | 0.25 | 0.70 | 28.68 | 29.25 | |||||
Equity Income | ||||||||||||||
2023 | - | - | - | - | - | - | - | - | - | |||||
2022 | - | - | - | - | - | - | - | - | - | |||||
2021 | - | - | - | - | - | - | - | - | - | |||||
2020 | - | - | - | - | - | - | - | - | - | |||||
2019 | - | - | - | - | - | - | - | - | - | |||||
Pimco: | ||||||||||||||
Total Return | ||||||||||||||
2023 | 15.06 | 15.06 | 43,033 | 648,160 | 3.57 | 0.25 | 0.25 | 5.67 | 5.67 | |||||
2022 | 14.25 | 14.25 | 39,727 | 566,258 | 2.48 | 0.25 | 0.25 | (14.51) | (14.51) | |||||
2021 | 16.67 | 16.67 | 82,920 | 1,382,659 | 1.82 | 0.25 | 0.25 | (1.51) | (1.51) | |||||
2020 | 16.93 | 16.93 | 83,750 | 1,417,943 | 2.09 | 0.25 | 0.25 | 8.37 | 8.37 | |||||
2019 | 15.62 | 15.62 | 74,776 | 1,168,202 | 3.01 | 0.25 | 0.25 | 8.08 | 8.08 | |||||
Low Duration | ||||||||||||||
2023 | 10.61 | 10.83 | 13,339 | 141,556 | 3.60 | 0.25 | 0.70 | 4.24 | 4.71 | |||||
2022 | 10.13 | 10.39 | 19,964 | 202,324 | 1.76 | 0.25 | 0.70 | (6.40) | (5.98) | |||||
2021 | 10.78 | 11.10 | 13,555 | 146,111 | 0.52 | 0.25 | 0.70 | (1.61) | (1.17) | |||||
2020 | 10.91 | 11.28 | 36,515 | 398,251 | 1.62 | 0.25 | 0.70 | 2.27 | 2.73 | |||||
2019 | 10.62 | 11.03 | 141,730 | 1,504,623 | 2.76 | 0.25 | 0.70 | 3.30 | 3.77 | |||||
Real Return | ||||||||||||||
2023 | 11.63 | 11.63 | 2,961 | 34,440 | 2.63 | 0.25 | 0.25 | 3.31 | 3.31 | |||||
2022 | 11.26 | 11.26 | 8,515 | 95,874 | 6.27 | 0.25 | 0.25 | (12.21) | (12.21) | |||||
2021 | 12.83 | 12.83 | 21,422 | 274,741 | 4.54 | 0.25 | 0.25 | 5.22 | 5.22 | |||||
2020 | 12.19 | 12.19 | 4,196 | 51,146 | 1.53 | 0.25 | 0.25 | 11.32 | 11.32 | |||||
2019 | 10.95 | 10.95 | 2,641 | 28,919 | 1.63 | 0.25 | 0.25 | 8.06 | 8.06 |
FS-61 |
5. FINANCIAL HIGHLIGHTS, continued
At December 31 | For the Periods Ended December 31 | |||||||||||||
Net | Inv. | |||||||||||||
Unit | Assets | Income | Expense | Total | ||||||||||
Value ($) | Units | ($) | Ratio % | Ratio % | Return % | |||||||||
Min | Max | Min | Max | Min | Max | |||||||||
Ivy: | ||||||||||||||
Science | ||||||||||||||
2023 | 88.20 | 88.20 | 4 | 376 | - | 0.70 | 0.70 | 38.10 | 38.10 | |||||
2022 | 63.87 | 63.87 | 4 | 286 | - | 0.70 | 0.70 | (32.31) | (32.31) | |||||
2021 | 94.36 | 94.36 | 5 | 443 | - | 0.70 | 0.70 | 14.37 | 14.37 | |||||
2020 | 82.51 | 82.51 | 5 | 406 | - | 0.70 | 0.70 | 34.42 | 34.42 | |||||
2019 | 61.38 | 61.38 | 5 | 320 | - | 0.70 | 0.70 | 48.44 | 48.44 | |||||
Balanced | ||||||||||||||
2023 | 17.20 | 17.20 | 1,032 | 17,741 | 0.81 | 0.25 | 0.25 | 15.74 | 15.74 | |||||
2022 | 14.86 | 14.86 | 2,271 | 33,739 | 0.34 | 0.25 | 0.25 | (16.27) | (16.27) | |||||
2021 | 17.75 | 17.75 | 316 | 5,600 | 1.12 | 0.25 | 0.25 | 15.68 | 15.68 | |||||
2020 | 15.34 | 15.34 | 863 | 13,242 | 1.40 | 0.25 | 0.25 | 13.83 | 13.83 | |||||
2019 | 13.48 | 13.48 | 822 | 11,084 | 2.04 | 0.25 | 0.25 | 21.79 | 21.79 | |||||
Ibbotson: | ||||||||||||||
Growth | ||||||||||||||
2023 | 20.44 | 20.90 | 44,663 | 933,516 | 1.88 | 0.25 | 0.70 | 14.47 | 14.98 | |||||
2022 | 17.86 | 18.18 | 43,054 | 782,662 | 1.62 | 0.25 | 0.70 | (13.85) | (13.47) | |||||
2021 | 20.73 | 21.01 | 41,561 | 873,127 | 1.24 | 0.25 | 0.70 | 14.09 | 14.60 | |||||
2020 | 18.17 | 18.33 | 42,050 | 770,887 | 2.12 | 0.25 | 0.70 | 9.24 | 9.73 | |||||
2019 | 16.63 | 16.71 | 40,711 | 680,184 | 1.80 | 0.25 | 0.70 | 18.93 | 19.47 | |||||
Income | ||||||||||||||
2023 | 15.58 | 15.58 | 2,523 | 39,313 | 2.20 | 0.25 | 0.25 | 10.32 | 10.32 | |||||
2022 | 14.13 | 14.13 | 2,424 | 34,232 | 1.78 | 0.25 | 0.25 | (12.76) | (12.76) | |||||
2021 | 16.19 | 16.19 | 2,320 | 37,549 | 1.25 | 0.25 | 0.25 | 6.20 | 6.20 | |||||
2020 | 15.25 | 15.25 | 3,010 | 45,880 | 2.07 | 0.25 | 0.25 | 8.16 | 8.16 | |||||
2019 | 14.10 | 14.10 | 3,171 | 44,681 | 2.12 | 0.25 | 0.25 | 12.62 | 12.62 | |||||
Balanced | ||||||||||||||
2023 | 18.29 | 18.29 | 11,236 | 205,450 | 2.06 | 0.25 | 0.25 | 12.54 | 12.54 | |||||
2022 | 16.25 | 16.25 | 10,915 | 177,340 | 1.72 | 0.25 | 0.25 | (13.10) | (13.10) | |||||
2021 | 18.70 | 18.70 | 10,768 | 201,334 | 1.33 | 0.25 | 0.25 | 10.51 | 10.51 | |||||
2020 | 16.92 | 16.92 | 11,690 | 197,787 | 2.09 | 0.25 | 0.25 | 8.85 | 8.85 | |||||
2019 | 15.55 | 15.55 | 11,601 | 180,320 | 2.54 | 0.25 | 0.25 | 15.97 | 15.97 |
FS-62 |
5. FINANCIAL HIGHLIGHTS, continued
At December 31 | For the Periods Ended December 31 | |||||||||||||
Net | Inv. | |||||||||||||
Unit | Assets | Income | Expense | Total | ||||||||||
Value ($) | Units | ($) | Ratio % | Ratio % | Return % | |||||||||
Min | Max | Min | Max | Min | Max | |||||||||
American Funds: | ||||||||||||||
IS New World | ||||||||||||||
2023 | - | - | - | - | - | - | - | - | - | |||||
2022 | - | - | - | - | - | - | - | - | - | |||||
2021 | - | - | - | - | - | - | - | - | - | |||||
2020 | - | - | - | - | - | - | - | - | - | |||||
2019 | - | - | - | - | - | - | - | - | - | |||||
FS-63 |
6. CHANGES IN UNITS OUTSTANDING
The change in units outstanding for the periods ended December 31, were as follows:
2023 | 2022 | |||
Alger: | ||||
Capital App | ||||
Units issued | 12,249 | 20,044 | ||
Units redeemed | (13,604) | (21,350) | ||
Net increase(decrease) | (1,355) | (1,306) | ||
Mid Cap | ||||
Units issued | 15,290 | 16,533 | ||
Units redeemed | (19,777) | (21,004) | ||
Net increase(decrease) | (4,487) | (4,471) | ||
Balanced | ||||
Units issued | - | - | ||
Units redeemed | - | - | ||
Net increase(decrease) | - | - | ||
American Century: | ||||
Income & Growth | ||||
Units issued | 177,457 | 197,255 | ||
Units redeemed | (178,469) | (210,153) | ||
Net increase(decrease) | (1,012) | (12,898) | ||
Value | ||||
Units issued | 26,521 | 74,168 | ||
Units redeemed | (36,813) | (54,164) | ||
Net increase(decrease) | (10,292) | 20,004 | ||
Mid Cap Value | ||||
Units issued | 83,993 | 106,115 | ||
Units redeemed | (84,384) | (113,923) | ||
Net increase(decrease) | (391) | (7,808) | ||
International | ||||
Units issued | 16,235 | 16,956 | ||
Units redeemed | (21,327) | (15,350) | ||
Net increase(decrease) | (5,092) | 1,606 | ||
Scudder: | ||||
Capital Growth | ||||
Units issued | 9,511 | 10,702 | ||
Units redeemed | (13,429) | (17,457) | ||
Net increase(decrease) | (3,918) | (6,755) | ||
FS-64 |
6. CHANGES IN UNITS OUTSTANDING, continued
2023 | 2022 | |||
Scudder, continued: | ||||
International | ||||
Units issued | 29,429 | 35,430 | ||
Units redeemed | (39,444) | (42,875) | ||
Net increase(decrease) | (10,015) | (7,445) | ||
Money Market | ||||
Units issued | 351,758 | 331,618 | ||
Units redeemed | (361,616) | (339,782) | ||
Net increase(decrease) | (9,858) | (8,164) | ||
Mid Value | ||||
Units issued | 3,632 | 21,017 | ||
Units redeemed | (6,420) | (20,547) | ||
Net increase(decrease) | (2,788) | 470 | ||
Global | ||||
Units issued | 39,001 | 37,586 | ||
Units redeemed | (40,777) | (35,954) | ||
Net increase(decrease) | (1,776) | 1,632 | ||
Franklin Templeton: | ||||
Growth Securities | ||||
Units issued | 1,311 | 1,412 | ||
Units redeemed | (1,026) | (823) | ||
Net increase(decrease) | 285 | 589 | ||
Foreign Securities | ||||
Units issued | 881 | 685 | ||
Units redeemed | (2,344) | (2,028) | ||
Net increase(decrease) | (1,463) | (1,343) | ||
Income | ||||
Units issued | 4,105 | 11,930 | ||
Units redeemed | (4,956) | (424) | ||
Net increase(decrease) | (851) | 11,506 | ||
Global Bond | ||||
Units issued | 343,166 | 379,591 | ||
Units redeemed | (338,957) | (419,074) | ||
Net increase(decrease) | 4,209 | (39,483) | ||
FS-65 |
6. CHANGES IN UNITS OUTSTANDING, continued
2023 | 2022 | |||
AIM: | ||||
American Value | ||||
Units issued | 1,727 | 1,346 | ||
Units redeemed | (4,124) | (1,756) | ||
Net increase(decrease) | (2,397) | (410) | ||
American Franchise | ||||
Units issued | 47,445 | 45,989 | ||
Units redeemed | (58,784) | (48,359) | ||
Net increase(decrease) | (11,339) | (2,370) | ||
Intl Growth | ||||
Units issued | 197,251 | 238,245 | ||
Units redeemed | (202,151) | (259,653) | ||
Net increase(decrease) | (4,900) | (21,408) | ||
Global | ||||
Units issued | 507 | 1,550 | ||
Units redeemed | (384) | (2,218) | ||
Net increase(decrease) | 123 | (668) | ||
Small Cap | ||||
Units issued | 4 | 4 | ||
Units redeemed | (8) | (8) | ||
Net increase(decrease) | (4) | (4) | ||
Equity & Income | ||||
Units issued | 222 | 335 | ||
Units redeemed | (76) | (25) | ||
Net increase(decrease) | 146 | 310 | ||
Cap App | ||||
Units issued | 865 | 1,612 | ||
Units redeemed | (1,500) | (2,906) | ||
Net increase(decrease) | (635) | (1,294) | ||
Global Securities | ||||
Units issued | 43,591 | 52,564 | ||
Units redeemed | (50,843) | (57,566) | ||
Net increase(decrease) | (7,252) | (5,002) | ||
FS-66 |
6. CHANGES IN UNITS OUTSTANDING, continued
2023 | 2022 | |||
AIM, continued: | ||||
Growth & Income | ||||
Units issued | 19,257 | 6,109 | ||
Units redeemed | (22,760) | (13,668) | ||
Net increase(decrease) | (3,503) | (7,559) | ||
Van Kampen: | ||||
U.S. Real Estate | ||||
Units issued | 158,663 | 164,565 | ||
Units redeemed | (161,827) | (173,011) | ||
Net increase(decrease) | (3,164) | (8,446) | ||
Emerging Markets | ||||
Units issued | 468,522 | 550,314 | ||
Units redeemed | (476,751) | (546,763) | ||
Net increase(decrease) | (8,229) | 3,551 | ||
Neuberger Berman: | ||||
Regency | ||||
Units issued | 1,381 | 1,342 | ||
Units redeemed | (1,627) | (1,414) | ||
Net increase(decrease) | (246) | (72) | ||
Equity | ||||
Units issued | 45,805 | 46,237 | ||
Units redeemed | (63,881) | (87,879) | ||
Net increase(decrease) | (18,076) | (41,642) | ||
MFS: | ||||
Growth | ||||
Units issued | 9,536 | 8,440 | ||
Units redeemed | (18,306) | (17,101) | ||
Net increase(decrease) | (8,770) | (8,661) | ||
Investor Trust | ||||
Units issued | 8,752 | 8,337 | ||
Units redeemed | (13,892) | (14,577) | ||
Net increase(decrease) | (5,140) | (6,240) | ||
New Discovery | ||||
Units issued | 27,774 | 28,240 | ||
Units redeemed | (33,235) | (30,397) | ||
Net increase(decrease) | (5,461) | (2,157) | ||
FS-67 |
6. CHANGES IN UNITS OUTSTANDING, continued
2023 | 2022 | |||
MFS, continued: | ||||
Total Return | ||||
Units issued | 58,319 | 57,896 | ||
Units redeemed | (62,298) | (79,096) | ||
Net increase(decrease) | (3,979) | (21,200) | ||
Utilities | ||||
Units issued | 1,605 | 5,333 | ||
Units redeemed | (2,953) | (4,345) | ||
Net increase(decrease) | (1,348) | 988 | ||
Value | ||||
Units issued | 2 | 2 | ||
Units redeemed | (1) | (1) | ||
Net increase(decrease) | 1 | 1 | ||
Global Real Estate | ||||
Units issued | - | - | ||
Units redeemed | - | - | ||
Net increase(decrease) | - | - | ||
High Yield | ||||
Units issued | 90,440 | 119,751 | ||
Units redeemed | (124,186) | (147,047) | ||
Net increase(decrease) | (33,746) | (27,296) | ||
Research | ||||
Units issued | 373,533 | 469,305 | ||
Units redeemed | (389,128) | (502,567) | ||
Net increase(decrease) | (15,595) | (33,262) | ||
Seligman: | ||||
Global Tech | ||||
Units issued | 11,266 | 11,440 | ||
Units redeemed | (14,063) | (10,372) | ||
Net increase(decrease) | (2,797) | 1,068 | ||
Smaller Value | ||||
Units issued | 71,909 | 81,370 | ||
Units redeemed | (84,938) | (92,223) | ||
Net increase(decrease) | (13,029) | (10,853) | ||
FS-68 |
6. CHANGES IN UNITS OUTSTANDING, continued
2023 | 2022 | |||
Summit: | ||||
EAFE Intl. | ||||
Units issued | 225,235 | 309,279 | ||
Units redeemed | (233,419) | (321,474) | ||
Net increase(decrease) | (8,184) | (12,195) | ||
Barclays | ||||
Units issued | 530,149 | 580,851 | ||
Units redeemed | (545,676) | (623,526) | ||
Net increase(decrease) | (15,527) | (42,675) | ||
S&P 500 | ||||
Units issued | 273,348 | 330,683 | ||
Units redeemed | (321,793) | (345,837) | ||
Net increase(decrease) | (48,445) | (15,154) | ||
Nasdaq 100 | ||||
Units issued | 152,675 | 174,816 | ||
Units redeemed | (167,189) | (217,270) | ||
Net increase(decrease) | (14,514) | (42,454) | ||
Russell | ||||
Units issued | 177,801 | 201,893 | ||
Units redeemed | (182,818) | (210,806) | ||
Net increase(decrease) | (5,017) | (8,913) | ||
Midcap 400 | ||||
Units issued | 141,741 | 162,240 | ||
Units redeemed | (155,246) | (165,600) | ||
Net increase(decrease) | (13,505) | (3,360) | ||
Moderate | ||||
Units issued | 175,727 | 179,614 | ||
Units redeemed | (176,423) | (181,326) | ||
Net increase(decrease) | (696) | (1,712) | ||
Mod. Growth | ||||
Units issued | 286,503 | 335,882 | ||
Units redeemed | (290,352) | (372,551) | ||
Net increase(decrease) | (3,849) | (36,669) | ||
FS-69 |
6. CHANGES IN UNITS OUTSTANDING, continued
2023 | 2022 | |||
Calvert: | ||||
Balanced | ||||
Units issued | 13,399 | 16,747 | ||
Units redeemed | (16,119) | (17,360) | ||
Net increase(decrease) | (2,720) | (613) | ||
Fidelity: | ||||
Contrafund IC | ||||
Units issued | 12,652 | 17,931 | ||
Units redeemed | (14,259) | (21,568) | ||
Net increase(decrease) | (1,607) | (3,637) | ||
Equity Inc. IC | ||||
Units issued | 8,077 | 11,148 | ||
Units redeemed | (6,488) | (7,226) | ||
Net increase(decrease) | 1,589 | 3,922 | ||
High Inc. IC | ||||
Units issued | 274,874 | 306,694 | ||
Units redeemed | (277,357) | (332,000) | ||
Net increase(decrease) | (2,483) | (25,306) | ||
Bond IC | ||||
Units issued | 481,251 | 483,657 | ||
Units redeemed | (437,730) | (515,022) | ||
Net increase(decrease) | 43,521 | (31,365) | ||
Mid Cap IC | ||||
Units issued | 8,529 | 17,692 | ||
Units redeemed | (9,547) | (18,758) | ||
Net increase(decrease) | (1,018) | (1,066) | ||
Overseas IC | ||||
Units issued | - | - | ||
Units redeemed | - | - | ||
Net increase(decrease) | - | - | ||
Strategic IC | ||||
Units issued | - | - | ||
Units redeemed | - | - | ||
Net increase(decrease) | - | - | ||
FS-70 |
6. CHANGES IN UNITS OUTSTANDING, continued
2023 | 2022 | |||
Fidelity, continued: | ||||
Money Market | ||||
Units issued | 1,856 | 1,906 | ||
Units redeemed | (789) | (769) | ||
Net increase(decrease) | 1,067 | 1,137 | ||
Third Avenue: | ||||
Value | ||||
Units issued | 47,864 | 54,748 | ||
Units redeemed | (52,779) | (59,965) | ||
Net increase(decrease) | (4,915) | (5,217) | ||
T. Rowe: | ||||
Blue Chip | ||||
Units issued | 151,967 | 172,010 | ||
Units redeemed | (168,381) | (178,171) | ||
Net increase(decrease) | (16,414) | (6,161) | ||
Equity Income | ||||
Units issued | - | - | ||
Units redeemed | - | - | ||
Net increase(decrease) | - | - | ||
Pimco: | ||||
Total Return | ||||
Units issued | 21,346 | 20,982 | ||
Units redeemed | (18,040) | (64,175) | ||
Net increase(decrease) | 3,306 | (43,193) | ||
Low Duration | ||||
Units issued | 17,533 | 30,861 | ||
Units redeemed | (24,158) | (24,452) | ||
Net increase(decrease) | (6,625) | 6,409 | ||
Real Return | ||||
Units issued | 1,385 | 23,803 | ||
Units redeemed | (6,939) | (36,710) | ||
Net increase(decrease) | (5,554) | (12,907) | ||
Ivy: | ||||
Science | ||||
Units issued | - | - | ||
Units redeemed | - | (1) | ||
Net increase(decrease) | - | (1) | ||
FS-71 |
6. CHANGES IN UNITS OUTSTANDING, continued
2023 | 2022 | |||
Ivy, continued: | ||||
Balanced | ||||
Units issued | 204 | 2,137 | ||
Units redeemed | (1,443) | (182) | ||
Net increase(decrease) | (1,239) | 1,955 | ||
Ibbotson: | ||||
Growth | ||||
Units issued | 10,684 | 9,999 | ||
Units redeemed | (9,075) | (8,506) | ||
Net increase(decrease) | 1,609 | 1,493 | ||
Income | ||||
Units issued | 919 | 895 | ||
Units redeemed | (820) | (791) | ||
Net increase(decrease) | 99 | 104 | ||
Balanced | ||||
Units issued | 14,459 | 13,005 | ||
Units redeemed | (14,138) | (12,858) | ||
Net increase(decrease) | 321 | 147 | ||
American Funds: | ||||
IS New World | ||||
Units issued | - | - | ||
Units redeemed | - | - | ||
Net increase(decrease) | - | - | ||
FS-72 |
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
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 |
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.
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.
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.
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 |
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.
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 |
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.
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.
47 |
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 |
48 |
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 |
49 |
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: | $ — | $ — | $ — |
50 |
NOTE 17 - ANALYSIS OF ANNUITY RESERVES AND DEPOSIT-TYPE FUNDS BY WITHDRAWAL CHARACTERISTICS, (continued)
2022 | ||||
General Account | Separate Account Non-guaranteed | Total | % of Total | |
Deposit-type Funds (no life contingencies): | ||||
Subject to discretionary withdrawal: | ||||
With fair value adjustment | $ 215,985 | $ — | $ 215,985 | 14.0 % |
At book value less current surrender | ||||
charge of 5% or more | — | — | — | — % |
At fair value | — | 373,612 | 373,612 | 24.2 % |
Total with adjustment or at fair value | 215,985 | 373,612 | 589,597 | 38.2 % |
At book value without adjustment | ||||
(minimal or no charge) | 239,630 | — | 239,630 | 15.5 % |
Not subject to discretionary withdrawal | 715,673 | — | 715,673 | 46.3 % |
Total gross | 1,171,288 | 373,612 | 1,544,900 | 100.0 % |
Reinsurance ceded | 432 | — | 432 | |
Total deposit-type funds | $ 1,170,856 | $ 373,612 | $ 1,544,468 | |
Amount included in at book value less current surrender charge of 5% or more that will move to at book value without adjustment (minimal or no charge adjustment) for the first time within the year after the statement date: | $ — | $ — | $ — | |
Total annuity reserves and deposit-type funds | $ 6,450,590 | $ 8,348,889 | $ 14,799,479 |
The following information is obtained from the applicable Exhibit in the Company’s December 31 Annual Statements and related Separate Accounts Annual Statements, both of which are filed with the Department, and is provided to reconcile annuity reserves and deposit-type funds to amounts reported in the Balance Sheets – Statutory Basis as of December 31:
2023 | 2022 | |
Life and Accident and Health Annual Statement: | ||
Exhibit 5, Annuities Section, Total (net) | $ 5,614,663 | $ 5,257,699 |
Exhibit 5, Supplementary Contracts with Life Contingencies Section, Total (net) | 21,314 | 22,035 |
Exhibit 7, Deposit-Type Contracts, Line 14, Column 1 | 1,170,436 | 1,170,856 |
6,806,413 | 6,450,590 | |
Separate Accounts Annual Statement: | ||
Exhibit 3, Line 0299999, Column 2 | 8,903,291 | 7,975,277 |
Exhibit 4, Line 9, Column 1 | 399,909 | 373,612 |
Total | $ 16,109,613 | $ 14,799,479 |
51 |
NOTE 18 - ANALYSIS OF LIFE ACTUARIAL RESERVES BY WITHDRAWAL CHARACTERISTICS
Withdrawal characteristics of life insurance account value, cash value and reserves as of December 31 are as follows:
2023 | |||||||
General Account | Separate Account Nonguaranteed | ||||||
Account Value | Cash Value | Reserve | Account Value | Cash Value | Reserve | ||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||
Universal life | $ 1,037,751 | $ 1,034,859 | $ 1,041,312 | $ — | $ — | $ — | |
Universal life with secondary guarantees | 755,070 | 643,235 | 1,272,427 | — | — | — | |
Indexed universal life | 13,650 | 13,645 | 13,721 | — | — | — | |
Indexed universal life with secondary guarantees | 1,269,209 | 1,060,826 | 1,131,587 | — | — | — | |
Other permanent cash value life insurance | — | 1,710,788 | 2,828,791 | — | — | — | |
Variable universal life | 147,867 | 1,204,568 | 159,133 | 1,064,218 | — | 1,062,279 | |
Not subject to discretionary withdrawal or no cash values: | |||||||
Term policies without cash value | XXX | XXX | 500,217 | XXX | XXX | — | |
Accidental death benefits | XXX | XXX | 315 | XXX | XXX | — | |
Disability - active lives | XXX | XXX | 32,603 | XXX | XXX | — | |
Disability - disabled lives | XXX | XXX | 23,217 | XXX | XXX | — | |
Miscellaneous reserves | XXX | XXX | 22,383 | XXX | XXX | — | |
Total gross | 3,223,547 | 5,667,921 | 7,025,706 | 1,064,218 | — | 1,062,279 | |
Reinsurance ceded | — | — | 598,211 | — | — | — | |
Total life reserves | $ 3,223,547 | $ 5,667,921 | $ 6,427,495 | $ 1,064,218 | $ — | $ 1,062,279 |
2022 | |||||||
General Account | Separate Account Nonguaranteed | ||||||
Account Value | Cash Value | Reserve | Account Value | Cash Value | Reserve | ||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||
Universal life | $ 1,070,838 | $ 1,070,386 | $ 1,076,419 | $ — | $ — | $ — | |
Universal life with secondary guarantees | 753,257 | 631,387 | 1,232,632 | — | — | — | |
Indexed universal life | 13,971 | 13,964 | 14,091 | — | — | — | |
Indexed universal life with secondary guarantees | 1,091,925 | 900,498 | 960,006 | — | — | — | |
Other permanent cash value life insurance | — | 1,605,159 | 2,742,781 | — | — | — | |
Variable universal life | 146,649 | 1,060,788 | 157,522 | 922,149 | — | 919,743 | |
Not subject to discretionary withdrawal or no cash values: | |||||||
Term policies without cash value | XXX | XXX | 505,067 | XXX | XXX | — | |
Accidental death benefits | XXX | XXX | 312 | XXX | XXX | — | |
Disability - active lives | XXX | XXX | 32,238 | XXX | XXX | — | |
Disability - disabled lives | XXX | XXX | 24,493 | XXX | XXX | — | |
Miscellaneous reserves | XXX | XXX | 27,773 | XXX | XXX | — | |
Total gross | 3,076,640 | 5,282,182 | 6,773,334 | 922,149 | — | 919,743 | |
Reinsurance ceded | — | — | 614,353 | — | — | — | |
Total life reserves | $ 3,076,640 | $ 5,282,182 | $ 6,158,981 | $ 922,149 | $ — | $ 919,743 |
52 |
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 |
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.
53 |
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
54 |