VA-1 Separate Account of First UNUM Life Insurance Company
S-1
VA-1 Separate Account of First UNUM Life Insurance Company
Statements of assets and liabilities
December 31, 2023
|
Subaccount |
|
Investments |
|
Total Assets |
|
Net Assets |
|
|
American Century VP Balanced Fund - Class I |
|
$ |
8,147 |
|
|
$ |
8,147 |
|
|
$ |
8,147 |
|
|
|
BNY Mellon Stock Index Fund, Inc. - Initial Class |
|
|
866,310 |
|
|
|
866,310 |
|
|
|
866,310 |
|
|
|
BNY Mellon VIF Opportunistic Small Cap Portfolio - Initial Class |
|
|
45,860 |
|
|
|
45,860 |
|
|
|
45,860 |
|
|
|
Fidelity® VIP Asset Manager Portfolio - Initial Class |
|
|
56,086 |
|
|
|
56,086 |
|
|
|
56,086 |
|
|
|
Fidelity® VIP Equity-Income Portfolio - Initial Class |
|
|
35,025 |
|
|
|
35,025 |
|
|
|
35,025 |
|
|
|
Fidelity® VIP Growth Portfolio - Initial Class |
|
|
99,739 |
|
|
|
99,739 |
|
|
|
99,739 |
|
|
|
T. Rowe Price International Stock Portfolio |
|
|
19,041 |
|
|
|
19,041 |
|
|
|
19,041 |
|
|
See accompanying notes.
S-2
[THIS PAGE INTENTIONALLY LEFT BLANK]
VA-1 Separate Account of First UNUM Life Insurance Company
Statements of operations
Year Ended December 31, 2023
|
Subaccount |
|
Dividends
from
Investment
Income |
|
Mortality and
Expense
Guarantee Charges |
|
Net
Investment
Income (Loss) |
|
Net Realized
Gain (Loss)
on Investments |
|
|
American Century VP Balanced Fund - Class I |
|
$ |
241 |
|
|
$ |
(164 |
) |
|
$ |
77 |
|
|
$ |
286 |
|
|
|
BNY Mellon Stock Index Fund, Inc. - Initial Class |
|
|
11,243 |
|
|
|
(9,451 |
) |
|
|
1,792 |
|
|
|
11,306 |
|
|
|
BNY Mellon VIF Opportunistic Small Cap Portfolio - Initial Class |
|
|
174 |
|
|
|
(619 |
) |
|
|
(445 |
) |
|
|
(947 |
) |
|
|
Fidelity® VIP Asset Manager Portfolio - Initial Class |
|
|
1,282 |
|
|
|
(753 |
) |
|
|
529 |
|
|
|
506 |
|
|
|
Fidelity® VIP Equity-Income Portfolio - Initial Class |
|
|
644 |
|
|
|
(408 |
) |
|
|
236 |
|
|
|
144 |
|
|
|
Fidelity® VIP Growth Portfolio - Initial Class |
|
|
116 |
|
|
|
(1,250 |
) |
|
|
(1,134 |
) |
|
|
8,601 |
|
|
|
T. Rowe Price International Stock Portfolio |
|
|
181 |
|
|
|
(216 |
) |
|
|
(35 |
) |
|
|
4 |
|
|
See accompanying notes.
S-4
|
Subaccount |
|
Dividends
from
Net Realized
Gain on
Investments |
|
Total
Net Realized
Gain
on Investments |
|
Net Change
in Unrealized
Appreciation or
Depreciation
on Investments |
|
Net Increase
in Net Assets
Resulting
from Operations |
|
|
American Century VP Balanced Fund - Class I |
|
$ |
— |
|
|
$ |
286 |
|
|
$ |
1,626 |
|
|
$ |
1,989 |
|
|
|
BNY Mellon Stock Index Fund, Inc. - Initial Class |
|
|
28,680 |
|
|
|
39,986 |
|
|
|
131,011 |
|
|
|
172,789 |
|
|
|
BNY Mellon VIF Opportunistic Small Cap Portfolio - Initial Class |
|
|
1,174 |
|
|
|
227 |
|
|
|
3,152 |
|
|
|
2,934 |
|
|
|
Fidelity® VIP Asset Manager Portfolio - Initial Class |
|
|
751 |
|
|
|
1,257 |
|
|
|
5,085 |
|
|
|
6,871 |
|
|
|
Fidelity® VIP Equity-Income Portfolio - Initial Class |
|
|
967 |
|
|
|
1,111 |
|
|
|
1,666 |
|
|
|
3,013 |
|
|
|
Fidelity® VIP Growth Portfolio - Initial Class |
|
|
4,335 |
|
|
|
12,936 |
|
|
|
19,978 |
|
|
|
31,780 |
|
|
|
T. Rowe Price International Stock Portfolio |
|
|
— |
|
|
|
4 |
|
|
|
2,504 |
|
|
|
2,473 |
|
|
S-5
VA-1 Separate Account of First UNUM Life Insurance Company
Statements of changes in net assets
Years Ended December 31, 2022 and 2023
|
|
|
American
Century VP
Balanced
Fund -
Class I
Subaccount |
|
BNY Mellon
Stock Index
Fund, Inc. -
Initial Class
Subaccount |
|
BNY
Mellon VIF
Opportunistic
Small Cap
Portfolio -
Initial Class
Subaccount |
|
Fidelity® VIP
Asset
Manager
Portfolio -
Initial Class
Subaccount |
|
|
NET ASSETS AT JANUARY 1, 2022 |
|
$ |
24,881 |
|
|
$ |
882,956 |
|
|
$ |
64,806 |
|
|
$ |
84,874 |
|
|
|
Changes From Operations: |
|
|
• Net investment income (loss) |
|
|
(6 |
) |
|
|
1,114 |
|
|
|
(676 |
) |
|
|
616 |
|
|
|
• Net realized gain on investments |
|
|
3,489 |
|
|
|
68,568 |
|
|
|
11,538 |
|
|
|
5,121 |
|
|
|
• Net change in unrealized appreciation or depreciation on investments |
|
|
(7,709 |
) |
|
|
(240,033 |
) |
|
|
(22,260 |
) |
|
|
(19,081 |
) |
|
|
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS |
|
|
(4,226 |
) |
|
|
(170,351 |
) |
|
|
(11,398 |
) |
|
|
(13,344 |
) |
|
|
Changes From Unit Transactions: |
|
|
• Net unit transactions |
|
|
(3,315 |
) |
|
|
(58 |
) |
|
|
(1,377 |
) |
|
|
(4,238 |
) |
|
|
NET DECREASE IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
|
|
(3,315 |
) |
|
|
(58 |
) |
|
|
(1,377 |
) |
|
|
(4,238 |
) |
|
|
TOTAL DECREASE IN NET ASSETS |
|
|
(7,541 |
) |
|
|
(170,409 |
) |
|
|
(12,775 |
) |
|
|
(17,582 |
) |
|
|
NET ASSETS AT DECEMBER 31, 2022 |
|
|
17,340 |
|
|
|
712,547 |
|
|
|
52,031 |
|
|
|
67,292 |
|
|
|
Changes From Operations: |
|
|
• Net investment income (loss) |
|
|
77 |
|
|
|
1,792 |
|
|
|
(445 |
) |
|
|
529 |
|
|
|
• Net realized gain on investments |
|
|
286 |
|
|
|
39,986 |
|
|
|
227 |
|
|
|
1,257 |
|
|
|
• Net change in unrealized appreciation or depreciation on investments |
|
|
1,626 |
|
|
|
131,011 |
|
|
|
3,152 |
|
|
|
5,085 |
|
|
|
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
|
|
1,989 |
|
|
|
172,789 |
|
|
|
2,934 |
|
|
|
6,871 |
|
|
|
Changes From Unit Transactions: |
|
|
• Net unit transactions |
|
|
(11,182 |
) |
|
|
(19,026 |
) |
|
|
(9,105 |
) |
|
|
(18,077 |
) |
|
|
NET DECREASE IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
|
|
(11,182 |
) |
|
|
(19,026 |
) |
|
|
(9,105 |
) |
|
|
(18,077 |
) |
|
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
|
|
(9,193 |
) |
|
|
153,763 |
|
|
|
(6,171 |
) |
|
|
(11,206 |
) |
|
|
NET ASSETS AT DECEMBER 31, 2023 |
|
$ |
8,147 |
|
|
$ |
866,310 |
|
|
$ |
45,860 |
|
|
$ |
56,086 |
|
|
See accompanying notes.
S-6
|
|
|
Fidelity® VIP
Equity-Income
Portfolio -
Initial Class
Subaccount |
|
Fidelity® VIP
Growth
Portfolio -
Initial Class
Subaccount |
|
T. Rowe Price
International
Stock
Portfolio
Subaccount |
|
|
NET ASSETS AT JANUARY 1, 2022 |
|
$ |
41,632 |
|
|
$ |
139,097 |
|
|
$ |
20,307 |
|
|
|
Changes From Operations: |
|
|
• Net investment income (loss) |
|
|
243 |
|
|
|
(670 |
) |
|
|
(73 |
) |
|
|
• Net realized gain on investments |
|
|
1,549 |
|
|
|
8,731 |
|
|
|
413 |
|
|
|
• Net change in unrealized appreciation or depreciation on investments |
|
|
(4,286 |
) |
|
|
(43,333 |
) |
|
|
(3,745 |
) |
|
|
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS |
|
|
(2,494 |
) |
|
|
(35,272 |
) |
|
|
(3,405 |
) |
|
|
Changes From Unit Transactions: |
|
|
• Net unit transactions |
|
|
(4,147 |
) |
|
|
(371 |
) |
|
|
(137 |
) |
|
|
NET DECREASE IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
|
|
(4,147 |
) |
|
|
(371 |
) |
|
|
(137 |
) |
|
|
TOTAL DECREASE IN NET ASSETS |
|
|
(6,641 |
) |
|
|
(35,643 |
) |
|
|
(3,542 |
) |
|
|
NET ASSETS AT DECEMBER 31, 2022 |
|
|
34,991 |
|
|
|
103,454 |
|
|
|
16,765 |
|
|
|
Changes From Operations: |
|
|
• Net investment income (loss) |
|
|
236 |
|
|
|
(1,134 |
) |
|
|
(35 |
) |
|
|
• Net realized gain on investments |
|
|
1,111 |
|
|
|
12,936 |
|
|
|
4 |
|
|
|
• Net change in unrealized appreciation or depreciation on investments |
|
|
1,666 |
|
|
|
19,978 |
|
|
|
2,504 |
|
|
|
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
|
|
3,013 |
|
|
|
31,780 |
|
|
|
2,473 |
|
|
|
Changes From Unit Transactions: |
|
|
• Net unit transactions |
|
|
(2,979 |
) |
|
|
(35,495 |
) |
|
|
(197 |
) |
|
|
NET DECREASE IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
|
|
(2,979 |
) |
|
|
(35,495 |
) |
|
|
(197 |
) |
|
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
|
|
34 |
|
|
|
(3,715 |
) |
|
|
2,276 |
|
|
|
NET ASSETS AT DECEMBER 31, 2023 |
|
$ |
35,025 |
|
|
$ |
99,739 |
|
|
$ |
19,041 |
|
|
S-7
VA-1 Separate Account of First UNUM Life Insurance Company
Notes to financial statements
December 31, 2023
1. Accounting Policies and Separate Account Information
Organization: VA-1 Separate Account of First UNUM Life Insurance Company (the Variable Account) is a segregated investment account of First UNUM Life Insurance Company (First UNUM) and is registered as a unit investment trust with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended. The operations of the Variable Account are part of the operations of First UNUM. The Variable Account was established in accordance with the laws of the State of New York. Its registration statement became effective in August 1991. The assets are held for the exclusive benefit of First UNUM variable annuity contract owners and may not be used to satisfy any obligation that may arise from any other business conducted by First UNUM. Any excess of assets over reserves and other contract liabilities may be transferred to First UNUM's General Account. Principal markets are hospitals and not-for-profit organizations located in the State of New York. The Variable Account offers one product (Variable Annuity I) at one fee rate.
On October 1, 1996, First UNUM completed the sale of its group tax-sheltered annuity (TSA) business to Lincoln Life & Annuity Company of New York (Lincoln New York), a wholly owned subsidiary of The Lincoln National Life Insurance Company. The contracts were initially reinsured on an indemnity and an assumption basis. Upon consent of the TSA contract holders and/or participants, the contracts are considered reinsured on an assumption basis, legally releasing First UNUM from future contractual obligation to the respective contract holders and/or participants. Assets attributable to such participants' contracts were then transferred to separate accounts of Lincoln New York. Assets attributable to contracts of participants with respect to which such consent was not obtained remained in the Variable Account. Lincoln Financial Advisors Corporation, a non-affiliate of First UNUM, and an affiliate of Lincoln New York, acted as a distributor and principal underwriter of the Variable Account.
During 2007, Lincoln New York merged into Jefferson Pilot LifeAmerica Insurance Company. Jefferson Pilot LifeAmerica Insurance Company was renamed Lincoln Life & Annuity Company of New York.
Basis of Presentation: The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for unit investment trusts.
Accounting Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts as of the date of the financial statements. Those estimates are inherently subject to change and actual results could differ from those estimates. Included among the material (or potentially material) reported amounts that require use of estimates is the fair value of certain assets.
Investments: The assets of the Variable Account are divided into variable subaccounts, each of which may be invested in shares of one of eight available mutual funds (the Funds) of five open-ended management investment companies, each Fund with its own investment objective. The Funds are:
American Century Variable Portfolios, Inc.:
American Century VP Balanced Fund - Class I
BNY Mellon Stock Index Fund, Inc.:
BNY Mellon Stock Index Fund, Inc. - Initial Class
BNYM Mellon Variable Investment Fund:
BNY Mellon VIF Opportunistic Small Cap Portfolio - Initial Class
Fidelity® Variable Insurance Products:
Fidelity® VIP Asset Manager Portfolio - Initial Class
Fidelity® VIP Equity-Income Portfolio - Initial Class
Fidelity® VIP Government Money Market Portfolio - Initial Class*
Fidelity® VIP Growth Portfolio - Initial Class
T. Rowe Price International Series, Inc.:
T. Rowe Price International Stock Portfolio
* Available fund with no money invested at December 31, 2023
The Fidelity VIP Government Money Market Portfolio is used only for investments of initial contributions for which First UNUM has not received complete order instructions. Upon receipt of complete order instructions, the payments transferred to the Fidelity VIP Money Market Portfolio are allocated to purchase shares of one of the above Funds.
Each subaccount invests in shares of a single underlying Fund. The investment performance of each subaccount will reflect the investment performance of the underlying Fund less separate account expenses. There is no assurance that the investment objective of any underlying Fund will be met. A Fund calculates a daily net asset value per share ("NAV") which is based on the market value of its investment portfolio. The amount of risk varies significantly between subaccounts. Due to the level of risk associated with certain investment portfolios, it is at least reasonably possible that changes in the values of investment portfolios will occur in the near term and that such changes could materially affect contract holders' investments in the Funds and the amounts reported in the financial statements. The contract holder assumes all of the investment performance risk for the subaccounts selected.
S-8
VA-1 Separate Account of First UNUM Life Insurance Company
Notes to financial statements (continued)
1. Accounting Policies and Separate Account Information (continued)
Investments in the Funds are stated at fair value as determined by the closing net asset value per share on December 31, 2023. Net asset value is quoted by the Funds as derived by the fair value of the Funds' underlying investments. The difference between cost and net asset value is reflected as unrealized appreciation or depreciation of investments. There are no redemption restrictions on investments in the Funds.
Investments for which the fair value is measured at NAV using the practical expedient (investments in investees measured at NAV) are excluded from the fair value hierarchy. Accordingly, the Variable Account's investments in the Funds have not been classified in the fair value hierarchy.
Investment transactions are accounted for on a trade-date basis. The cost of investments sold is determined by the average cost method.
ASC 946-10-15, "Financial Services - Investment Companies (Topic 946) - Scope and Scope Exceptions" provides accounting guidance for assessing whether an entity is an investment company. This guidance evaluates the entity's purpose and design to determine whether the entity is an investment company. The standard also adds additional disclosure requirements regarding contractually required commitments to investees. Management has evaluated the criteria in the standard and concluded that the Variable Account qualifies as an investment company and therefore applies the accounting requirements of ASC 946.
Dividends: Dividends paid to the Variable Account are automatically reinvested in shares of the Funds on the payable date with the exception of Fidelity VIP Money Market Portfolio which is invested monthly. Dividend income is recorded on the ex-dividend date.
Federal Income Taxes: Operations of the Variable Account form a part of and are taxed with operations of
First UNUM, which is taxed as a "life insurance company" under the Internal Revenue Code. The Variable Account will not be taxed as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended. Under current federal income tax law, no federal income taxes are payable or receivable with respect to the Variable Account's net investment income and the net realized gain (loss) on investments.
2. Mortality and Expense Risk Charge and Other Transactions with Affiliates
First UNUM is the depositor for the Variable Account. Although First UNUM deducts for sales and administrative expenses under the contracts, First UNUM assumes an expense risk that these deductions may prove insufficient to cover the cost of those expenses.
In addition, First UNUM assumes a mortality risk under the contracts in that it agrees to make annuity payments regardless of how long a particular annuitant or their payee lives and how long all annuitants or other payees in a class live, if payment options involving life contingencies are chosen. Those annuity payments are determined in accordance with annuity purchase rate provisions established at the time the contracts are issued. First UNUM also assumes a mortality risk in providing a death benefit under the contracts.
To compensate First UNUM for assuming these mortality and expense risks, an effective annual mortality and expense risk charge of 1.20% of each portfolio's average daily net assets is imposed on each portfolio within the Variable Account with the exception of Fidelity VIP Government Money Market Portfolio. The mortality and expense risk charges for each of the variable subaccounts are reported in the statements of operations.
The Company charges an annual account fee which varies by product. Refer to the product prospectus for the account fee rate. The account fees are for items such as processing applications, issuing contracts, policy value calculation, confirmations and periodic reports. The Company, upon surrender of a policy, may assess a surrender charge. There were no account fees and surrender charges retained by the Company for the years ended December 31, 2023 and 2022.
Surrender and contract charges are included within Net unit transactions on the Statements of Changes in Net Assets.
S-9
VA-1 Separate Account of First UNUM Life Insurance Company
Notes to financial statements (continued)
3. Financial Highlights
A summary of the fee rates, unit values, units outstanding, net assets and total return and investment income ratios for variable annuity contracts as of and for each year or period in the five years ended December 31, 2023, follows:
|
Subaccount |
|
Year |
|
Fee Rate(1) |
|
Unit Value |
|
Units
Outstanding |
|
Net Assets |
|
Total
Return(2) |
|
Investment
Income
Ratio(3) |
|
|
American Century VP Balanced Fund - Class I |
|
|
|
|
|
2023 |
|
|
|
1.20 |
% |
|
$ |
50.05 |
|
|
|
163 |
|
|
$ |
8,147 |
|
|
|
15.02 |
% |
|
|
1.76 |
% |
|
|
|
|
|
2022 |
|
|
|
1.20 |
% |
|
|
43.51 |
|
|
|
399 |
|
|
|
17,340 |
|
|
|
-18.25 |
% |
|
|
1.17 |
% |
|
|
|
|
|
2021 |
|
|
|
1.20 |
% |
|
|
53.23 |
|
|
|
467 |
|
|
|
24,881 |
|
|
|
14.39 |
% |
|
|
0.72 |
% |
|
|
|
|
|
2020 |
|
|
|
1.20 |
% |
|
|
46.53 |
|
|
|
477 |
|
|
|
22,190 |
|
|
|
11.19 |
% |
|
|
1.18 |
% |
|
|
|
|
|
2019 |
|
|
|
1.20 |
% |
|
|
41.85 |
|
|
|
477 |
|
|
|
19,966 |
|
|
|
18.42 |
% |
|
|
1.55 |
% |
|
|
BNY Mellon Stock Index Fund, Inc. - Initial Class |
|
|
|
|
|
2023 |
|
|
|
1.20 |
% |
|
|
133.56 |
|
|
|
6,486 |
|
|
|
866,310 |
|
|
|
24.43 |
% |
|
|
1.43 |
% |
|
|
|
|
|
2022 |
|
|
|
1.20 |
% |
|
|
107.34 |
|
|
|
6,638 |
|
|
|
712,547 |
|
|
|
-19.29 |
% |
|
|
1.35 |
% |
|
|
|
|
|
2021 |
|
|
|
1.20 |
% |
|
|
133.00 |
|
|
|
6,639 |
|
|
|
882,956 |
|
|
|
26.88 |
% |
|
|
1.15 |
% |
|
|
|
|
|
2020 |
|
|
|
1.20 |
% |
|
|
104.82 |
|
|
|
6,647 |
|
|
|
696,726 |
|
|
|
16.60 |
% |
|
|
1.59 |
% |
|
|
|
|
|
2019 |
|
|
|
1.20 |
% |
|
|
89.90 |
|
|
|
6,647 |
|
|
|
597,591 |
|
|
|
29.62 |
% |
|
|
1.73 |
% |
|
|
BNY Mellon VIF Opportunistic Small Cap Portfolio - Initial Class |
|
|
|
|
|
2023 |
|
|
|
1.20 |
% |
|
|
54.67 |
|
|
|
839 |
|
|
|
45,860 |
|
|
|
7.98 |
% |
|
|
0.34 |
% |
|
|
|
|
|
2022 |
|
|
|
1.20 |
% |
|
|
50.63 |
|
|
|
1,028 |
|
|
|
52,031 |
|
|
|
-17.62 |
% |
|
|
0.00 |
% |
|
|
|
|
|
2021 |
|
|
|
1.20 |
% |
|
|
61.46 |
|
|
|
1,054 |
|
|
|
64,806 |
|
|
|
15.07 |
% |
|
|
0.11 |
% |
|
|
|
|
|
2020 |
|
|
|
1.20 |
% |
|
|
53.41 |
|
|
|
1,077 |
|
|
|
57,512 |
|
|
|
18.46 |
% |
|
|
0.64 |
% |
|
|
|
|
|
2019 |
|
|
|
1.20 |
% |
|
|
45.09 |
|
|
|
1,101 |
|
|
|
49,659 |
|
|
|
20.33 |
% |
|
|
0.00 |
% |
|
|
Fidelity® VIP Asset Manager Portfolio - Initial Class |
|
|
|
|
|
2023 |
|
|
|
1.20 |
% |
|
|
54.51 |
|
|
|
1,029 |
|
|
|
56,086 |
|
|
|
11.60 |
% |
|
|
2.04 |
% |
|
|
|
|
|
2022 |
|
|
|
1.20 |
% |
|
|
48.85 |
|
|
|
1,378 |
|
|
|
67,292 |
|
|
|
-15.95 |
% |
|
|
2.05 |
% |
|
|
|
|
|
2021 |
|
|
|
1.20 |
% |
|
|
58.12 |
|
|
|
1,460 |
|
|
|
84,874 |
|
|
|
8.61 |
% |
|
|
1.62 |
% |
|
|
|
|
|
2020 |
|
|
|
1.20 |
% |
|
|
53.51 |
|
|
|
1,486 |
|
|
|
79,497 |
|
|
|
13.50 |
% |
|
|
1.51 |
% |
|
|
|
|
|
2019 |
|
|
|
1.20 |
% |
|
|
47.15 |
|
|
|
1,513 |
|
|
|
71,331 |
|
|
|
16.84 |
% |
|
|
1.76 |
% |
|
|
Fidelity® VIP Equity-Income Portfolio - Initial Class |
|
|
|
|
|
2023 |
|
|
|
1.20 |
% |
|
|
82.98 |
|
|
|
422 |
|
|
|
35,025 |
|
|
|
9.33 |
% |
|
|
1.89 |
% |
|
|
|
|
|
2022 |
|
|
|
1.20 |
% |
|
|
75.90 |
|
|
|
461 |
|
|
|
34,991 |
|
|
|
-6.09 |
% |
|
|
1.88 |
% |
|
|
|
|
|
2021 |
|
|
|
1.20 |
% |
|
|
80.83 |
|
|
|
515 |
|
|
|
41,632 |
|
|
|
23.40 |
% |
|
|
1.92 |
% |
|
|
|
|
|
2020 |
|
|
|
1.20 |
% |
|
|
65.50 |
|
|
|
515 |
|
|
|
33,748 |
|
|
|
5.42 |
% |
|
|
1.84 |
% |
|
|
|
|
|
2019 |
|
|
|
1.20 |
% |
|
|
62.13 |
|
|
|
515 |
|
|
|
32,026 |
|
|
|
25.92 |
% |
|
|
2.07 |
% |
|
|
Fidelity® VIP Growth Portfolio - Initial Class |
|
|
|
|
|
2023 |
|
|
|
1.20 |
% |
|
|
172.86 |
|
|
|
577 |
|
|
|
99,739 |
|
|
|
34.61 |
% |
|
|
0.11 |
% |
|
|
|
|
|
2022 |
|
|
|
1.20 |
% |
|
|
128.41 |
|
|
|
806 |
|
|
|
103,454 |
|
|
|
-25.36 |
% |
|
|
0.61 |
% |
|
|
|
|
|
2021 |
|
|
|
1.20 |
% |
|
|
172.04 |
|
|
|
809 |
|
|
|
139,097 |
|
|
|
21.74 |
% |
|
|
0.00 |
% |
|
|
|
|
|
2020 |
|
|
|
1.20 |
% |
|
|
141.31 |
|
|
|
820 |
|
|
|
115,850 |
|
|
|
42.18 |
% |
|
|
0.07 |
% |
|
|
|
|
|
2019 |
|
|
|
1.20 |
% |
|
|
99.39 |
|
|
|
822 |
|
|
|
81,713 |
|
|
|
32.71 |
% |
|
|
0.25 |
% |
|
|
T. Rowe Price International Stock Portfolio |
|
|
|
|
|
2023 |
|
|
|
1.20 |
% |
|
|
28.68 |
|
|
|
664 |
|
|
|
19,041 |
|
|
|
14.85 |
% |
|
|
1.01 |
% |
|
|
|
|
|
2022 |
|
|
|
1.20 |
% |
|
|
24.97 |
|
|
|
671 |
|
|
|
16,765 |
|
|
|
-16.82 |
% |
|
|
0.78 |
% |
|
|
|
|
|
2021 |
|
|
|
1.20 |
% |
|
|
30.02 |
|
|
|
676 |
|
|
|
20,307 |
|
|
|
0.11 |
% |
|
|
0.58 |
% |
|
|
|
|
|
2020 |
|
|
|
1.20 |
% |
|
|
29.99 |
|
|
|
678 |
|
|
|
20,347 |
|
|
|
13.08 |
% |
|
|
0.59 |
% |
|
|
|
|
|
2019 |
|
|
|
1.20 |
% |
|
|
26.52 |
|
|
|
681 |
|
|
|
18,065 |
|
|
|
26.25 |
% |
|
|
2.45 |
% |
|
(1) These amounts represent the annualized minimum and maximum contract expenses of the separate account, consisting primarily of mortality and expense charges, for only those subaccounts which contain investments as of the respective year end. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds have been excluded.
(2) These amounts represent the total return, including changes in value of mutual funds, and reflect deductions for all items included in the fee rate. The total return does not include contract charges deducted directly from policy account values. The total return is not annualized.
(3) These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense guarantee charges, that result in direct reductions in the unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest. Investment income ratios are not annualized.
S-10
VA-1 Separate Account of First UNUM Life Insurance Company
Notes to financial statements (continued)
4. Purchases and Sales of Investments
The aggregate cost of investments purchased and the aggregate proceeds from investments sold were as follows for 2023:
|
Subaccount |
|
Aggregate
Cost of
Purchases |
|
Aggregate
Proceeds
from Sales |
|
|
American Century VP Balanced Fund - Class I |
|
$ |
239 |
|
|
$ |
11,345 |
|
|
|
BNY Mellon Stock Index Fund, Inc. - Initial Class |
|
|
39,708 |
|
|
|
28,285 |
|
|
|
BNY Mellon VIF Opportunistic Small Cap Portfolio - Initial Class |
|
|
1,347 |
|
|
|
9,725 |
|
|
|
Fidelity® VIP Asset Manager Portfolio - Initial Class |
|
|
2,029 |
|
|
|
18,828 |
|
|
|
Fidelity® VIP Equity-Income Portfolio - Initial Class |
|
|
1,609 |
|
|
|
3,386 |
|
|
|
Fidelity® VIP Growth Portfolio - Initial Class |
|
|
4,445 |
|
|
|
36,742 |
|
|
|
T. Rowe Price International Stock Portfolio |
|
|
180 |
|
|
|
413 |
|
|
5. Investments
The following is a summary of investments owned at December 31, 2023:
|
Subaccount |
|
Shares
Owned |
|
Net
Asset
Value |
|
Fair Value
of Shares |
|
Cost of Shares |
|
|
American Century VP Balanced Fund - Class I |
|
|
1,065 |
|
|
$ |
7.65 |
|
|
$ |
8,147 |
|
|
$ |
7,565 |
|
|
|
BNY Mellon Stock Index Fund, Inc. - Initial Class |
|
|
12,541 |
|
|
|
69.08 |
|
|
|
866,310 |
|
|
|
489,503 |
|
|
|
BNY Mellon VIF Opportunistic Small Cap Portfolio - Initial Class |
|
|
1,094 |
|
|
|
41.93 |
|
|
|
45,860 |
|
|
|
44,506 |
|
|
|
Fidelity® VIP Asset Manager Portfolio - Initial Class |
|
|
3,586 |
|
|
|
15.64 |
|
|
|
56,086 |
|
|
|
52,811 |
|
|
|
Fidelity® VIP Equity-Income Portfolio - Initial Class |
|
|
1,409 |
|
|
|
24.85 |
|
|
|
35,025 |
|
|
|
32,359 |
|
|
|
Fidelity® VIP Growth Portfolio - Initial Class |
|
|
1,071 |
|
|
|
93.10 |
|
|
|
99,739 |
|
|
|
71,864 |
|
|
|
T. Rowe Price International Stock Portfolio |
|
|
1,269 |
|
|
|
15.01 |
|
|
|
19,041 |
|
|
|
17,616 |
|
|
6. Changes in Units Outstanding
The change in units outstanding for the year ended December 31, 2023, is as follows:
|
Subaccount |
|
Units
Redeemed |
|
Net
Decrease |
|
|
American Century VP Balanced Fund - Class I |
|
|
(236 |
) |
|
|
(236 |
) |
|
|
BNY Mellon Stock Index Fund, Inc. - Initial Class |
|
|
(152 |
) |
|
|
(152 |
) |
|
|
BNY Mellon VIF Opportunistic Small Cap Portfolio - Initial Class |
|
|
(189 |
) |
|
|
(189 |
) |
|
|
Fidelity® VIP Asset Manager Portfolio - Initial Class |
|
|
(349 |
) |
|
|
(349 |
) |
|
|
Fidelity® VIP Equity-Income Portfolio - Initial Class |
|
|
(39 |
) |
|
|
(39 |
) |
|
|
Fidelity® VIP Growth Portfolio - Initial Class |
|
|
(229 |
) |
|
|
(229 |
) |
|
|
T. Rowe Price International Stock Portfolio |
|
|
(7 |
) |
|
|
(7 |
) |
|
The change in units outstanding for the year ended December 31, 2022, is as follows:
|
Subaccount |
|
Units
Redeemed |
|
Net
Decrease |
|
|
American Century VP Balanced Fund - Class I |
|
|
(68 |
) |
|
|
(68 |
) |
|
|
BNY Mellon Stock Index Fund, Inc. - Initial Class |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
BNY Mellon VIF Opportunistic Small Cap Portfolio - Initial Class |
|
|
(26 |
) |
|
|
(26 |
) |
|
|
Fidelity® VIP Asset Manager Portfolio - Initial Class |
|
|
(82 |
) |
|
|
(82 |
) |
|
|
Fidelity® VIP Equity-Income Portfolio - Initial Class |
|
|
(54 |
) |
|
|
(54 |
) |
|
|
Fidelity® VIP Growth Portfolio - Initial Class |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
T. Rowe Price International Stock Portfolio |
|
|
(5 |
) |
|
|
(5 |
) |
|
7. Subsequent Events
Management evaluated subsequent events through April 26, 2024, the date at which the Variable Account's financial statements were available to be issued, and determined there were no additional matters to be disclosed.
S-11
Report of Independent Registered Public Accounting Firm
To the Stockholders and Board of Directors of First UNUM Life Insurance Company
and
Contract Owners of VA-I Separate Account of First UNUM Life Insurance Company
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of each of the subaccounts listed in the Appendix that comprise VA-I Separate Account of First UNUM Life Insurance Company ("Variable Account"), as of December 31, 2023, the related statements of operations and the statements of changes in net assets for each of the periods indicated in the Appendix, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each subaccount as of December 31, 2023, the results of its operations and changes in its net assets for each of the periods indicated in the Appendix, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Variable Account's management. Our responsibility is to express an opinion on each of the subaccounts' financial statements 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 Variable 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 are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2023, by correspondence with the fund companies or their transfer agents, as applicable. 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. We believe that our audits provide a reasonable basis for our opinion.
Ernst & Young LLP
We have served as the Variable Account's Auditor since at least 2009, but we are unable to determine the specific year.
Philadelphia, Pennsylvania
April 26, 2024
S-12
|
Subaccount |
|
Statements of
Assets and Liabilities |
|
Statements of Operations |
|
Statements of Changes in Net Assets |
|
|
American Century VP Balanced Fund - Class I |
|
As of December 31, 2023 |
|
For the year ended December 31, 2023 |
|
For each of the two years in the period ended December 31, 2023 |
|
|
BNY Mellon Stock Index Fund, Inc. - Initial Class |
|
As of December 31, 2023 |
|
For the year ended December 31, 2023 |
|
For each of the two years in the period ended December 31, 2023 |
|
|
BNY Mellon VIF Opportunistic Small Cap Portfolio - Initial Class |
|
As of December 31, 2023 |
|
For the year ended December 31, 2023 |
|
For each of the two years in the period ended December 31, 2023 |
|
|
Fidelity® VIP Asset Manager Portfolio - Initial Class |
|
As of December 31, 2023 |
|
For the year ended December 31, 2023 |
|
For each of the two years in the period ended December 31, 2023 |
|
|
Fidelity® VIP Equity-Income Portfolio - Initial Class |
|
As of December 31, 2023 |
|
For the year ended December 31, 2023 |
|
For each of the two years in the period ended December 31, 2023 |
|
|
Fidelity® VIP Growth Portfolio - Initial Class |
|
As of December 31, 2023 |
|
For the year ended December 31, 2023 |
|
For each of the two years in the period ended December 31, 2023 |
|
|
T. Rowe Price International Stock Portfolio |
|
As of December 31, 2023 |
|
For the year ended December 31, 2023 |
|
For each of the two years in the period ended December 31, 2023 |
|
S-13