Table of Contents
Filed on: April 30, 2024
File No. 333-120600
File No. 811-21613
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
☐
 
Pre-Effective Amendment No.
 
☐
 
Post-Effective Amendment No.
20
☒
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
☐
 
Amendment No.
 
27
☒
(Check appropriate box or boxes)
VARIABLE ANNUITY ACCOUNT B
(SecureDesigns)

(Exact Name of Registrant)
First Security Benefit Life Insurance and Annuity Company of New York

(Name of Depositor)
121 State Street, Albany, New York 12207

(Address of Depositor’s Principal Executive Offices)
1-800-355-4570

(Depositor’s Telephone Number, Including Area Code)
Chris Swickard, Deputy General Counsel
First Security Benefit Life Insurance and Annuity Company of New York
One Security Benefit Place, Topeka, KS 66636-0001

(Name and Address of Agent for Service
Approximate Date of Proposed Public Offering: As soon as practicable after the effective date of this Registration Statement.
It is proposed that this filing will become effective (check appropriate box):
☐ immediately upon filing pursuant to paragraph (b)
☒ on May 1, 2024, pursuant to paragraph (b)
☐ 60 days after filing pursuant to paragraph (a)(1)
☐ on May 1, 2024, pursuant to paragraph (a)(1) of rule 485 under the Securities Act.
If appropriate, check the following box:
☐ this post-effective amendment designates a new effective date for a previously filed post-effective amendment.

Table of Contents
 
 
Prospectus
May 1, 2024
 
SECUREDESIGNS® VARIABLE ANNUITY
Important Privacy
Notice Included
Variable annuity contracts issued by
First Security Benefit Life Insurance and Annuity Company of New York
and offered by Security Distributors, LLC
32-69594-00 2024/05/01
6959
SECUREDESIGNS® VARIABLE ANNUITY
Individual Flexible Purchase Payment Deferred Variable Annuity Contract
Variable Annuity Account B
Issued By:
Mailing Address:
First Security Benefit Life Insurance
and Annuity Company of New York
121 State Street
Albany, New York 12207
1-800-355-4570
www.fsbl.com
First Security Benefit Life Insurance
and Annuity Company of New York
P.O. Box 750497
Topeka, Kansas 66675-0497
This Prospectus describes the SecureDesigns Variable Annuity—an Individual Flexible Purchase Payment Deferred Variable Annuity Contract (the “Contract”) offered by First Security Benefit Life Insurance and Annuity Company of New York (the “Company”). The Contract is available for individuals as a non-tax qualified contract. The Contract is also available for individuals in connection with a retirement plan qualified under Section 403(b), 408, or 408A of the Internal Revenue Code. The Contract may be available through third-party financial intermediaries who charge an advisory fee for their services. This fee is in addition to Contract fees and expenses. If you elect to pay the advisory fee from your Contract Value, then this deduction will reduce death benefits and other guaranteed benefits, perhaps significantly, and may be subject to federal and state income taxes and a 10% federal penalty tax. The Contract is designed to give you flexibility in planning for retirement and other financial goals. This Prospectus is used with both prospective purchasers and current Owners.
You may allocate your Purchase Payments and Contract Value to one or more of the Subaccounts that comprise a separate account of the Company, called Variable Annuity Account B (the “Separate Account”), or to the Fixed Account (if it is available under your Contract). Each Subaccount invests in a corresponding mutual fund (each, an “Underlying Fund”). The Underlying Funds currently available under the Contract are listed and described in Appendix A to this Prospectus (entitled “Underlying Funds Available Under the Contract”).
This Prospectus sets forth information about the Contract and the Separate Account that you should know before purchasing the Contract. This Prospectus should be kept for future reference. Additional information about certain investment products, including variable annuities, has been prepared by the Securities and Exchange Commission’s staff and is available at Investor.gov.
If you are a new investor in the Contract, you may cancel your Contract within 10 days of receiving it without paying fees or penalties. In some states, this cancellation period may be longer. Upon cancellation, you will receive either a full refund of the amount you paid with your application or your total Contract Value. Neither the refund nor the Contract Value will include any Credit Enhancements, if applicable. You should review this Prospectus, or consult with your investment professional, for additional information about the specific cancellation terms that apply.
The Securities and Exchange Commission (“SEC”) has not approved or disapproved these securities or
determined if this Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
Expenses for this Contract, if purchased with the Extra Credit Rider, may be higher than expenses for a
contract without the Extra Credit Rider. The amount of Credit Enhancement may be more than offset by
additional fees and charges. All or a portion of your Credit Enhancement may be recaptured upon
cancellation of your Contract under the free look provision, surrender, withdrawal, or death.
The Contract is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The value of your Contract can go up and down and you could
lose money.
 
Date: May 1, 2024
6959
32-69594-00 2024/05/01
Protected by U.S. Patent No. 7,251,623 B1.
Table of Contents
 
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A-1
B-1
C-1
3
Definitions
Various terms commonly used in this Prospectus are defined as follows:
Accumulation Unit — A unit of measure used to calculate Contract Value.
Administrative Office — First Security Benefit Life Insurance and Annuity Company of New York, P.O. Box 750497, Topeka, Kansas 66675-0497.
Annuitant — The person that you designate on whose life annuity payments may be determined. If you designate Joint Annuitants, “Annuitant” means both Annuitants unless otherwise stated.
Annuity (“annuity”) — A series of periodic income payments made by the Company to an Annuitant, Joint Annuitant, or Designated Beneficiary during the period specified in the Annuity Options.
Annuity Options — Options under the Contract that prescribe the provisions under which a series of annuity payments are made.
Annuity Period — The period beginning on the Annuity Start Date during which annuity payments are made.
Annuity Start Date — The date when annuity payments begin.
Annuity Unit — A unit of measure used to calculate variable annuity payments under Annuity Options 1 through 6.
Automatic Investment Program — A program pursuant to which Purchase Payments are automatically paid from your bank account on a specified day of each month or a salary reduction agreement.
Bonus Credit — For certain Contracts issued between September 1, 2005 and December 31, 2007, an amount added to Contract Value under the Bonus Credit Rider.
Company — First Security Benefit Life Insurance and Annuity Company of New York. The Company is also identified herein as “we,” “our,” or “us.”
Contract — The flexible purchase payment deferred variable annuity contract described in this Prospectus.
Contract Date — The date the Contract begins as shown in your Contract. Contract anniversaries are measured from the Contract Date. The Contract Date is usually the date that the initial Purchase Payment is credited to the Contract.
Contract Debt — The unpaid loan balance including accrued loan interest.
Contract Value — The total value of your Contract which includes amounts allocated to the Subaccounts and the Fixed Account as well as any amount set aside in the Loan Account to secure loans as of any Valuation Date.
Contract Year — Each twelve-month period measured from the Contract Date.
Credit Enhancement — An amount added to Contract Value under the Extra Credit Rider.
Designated Beneficiary — The person having the right to the death benefit, if any, payable upon the death of the Owner or Joint Owner prior to the Annuity Start Date.
Fixed Account — An account that is part of the Company’s General Account to which you may allocate all or a portion of your Contract Value to be held for accumulation at fixed rates of interest (which may not be less than the Guaranteed Rate) declared periodically by the Company.
4
General Account — All assets of the Company other than those allocated to the Separate Account or to any other separate account of the Company.
Guaranteed Rate — The minimum interest rate earned on Contract Value allocated to the Fixed Account, which accrues daily and ranges from an annual effective rate of 1% to 3% based upon the state in which the Contract is issued and the requirements of that state.
Internal Revenue Code or the Code — The Internal Revenue Code of 1986, as amended.
Owner — The person entitled to the ownership rights under the Contract and in whose name the Contract is issued.
Purchase Payment — An amount initially paid to the Company as consideration for the Contract and any subsequent amounts paid to the Company under the Contract.
Separate Account — Variable Annuity Account B, a separate account of the Company that consists of accounts, referred to as Subaccounts, each of which invests in a corresponding Underlying Fund.
Subaccount — A division of the Separate Account which invests in a corresponding Underlying Fund.
Underlying Fund — A mutual fund or series thereof that serves as an investment vehicle for its corresponding Subaccount.
Valuation Date — Each date on which the Separate Account is valued, which currently includes each day that the New York Stock Exchange is open for trading. Each Valuation Date closes at the end of regular trading on the New York Stock Exchange (normally, 3:00 p.m. Central time). The New York Stock Exchange is scheduled to be closed on weekends and on the following holidays: New Year’s Day, Martin Luther King, Jr. Day, Washington's Birthday, Good Friday, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
Valuation Period — A period used in measuring the investment experience of each Subaccount of the Separate Account. The Valuation Period begins at the close of one Valuation Date and ends at the close of the next Valuation Date.
Withdrawal Value — The amount you will receive upon full withdrawal of the Contract. It is equal to Contract Value less any Contract Debt, any applicable withdrawal charges, any pro rata account administration charge and any uncollected premium taxes. If the Extra Credit Rider is in effect, Contract Value will also be reduced by any Credit Enhancements that have not yet vested. The Withdrawal Value during the Annuity Period under Annuity Option 5 is the present value of future annuity payments commuted at the assumed interest rate, less any applicable withdrawal charges and any uncollected premium taxes.
Important Information You Should Consider About the Contract
 
FEES AND EXPENSES
Location in Prospectus
Charges for
Early
Withdrawals
If you withdraw money from your Contract within 7 years following your last
Purchase Payment, you may be assessed a surrender charge of up to 7% (as
a percentage of the portion of the withdrawal amount consisting of Purchase
Payments, including any Bonus Credits), declining to 0% in the eighth year.
For example, if you were to withdraw $100,000 during a surrender charge
period, you would be assessed a charge of up to $7,000.
Fee Table
Fee Table – Examples
Charges and Deductions
– Contingent Deferred
Sales Charge
Transaction
Charges
Other than surrender charges (if any), there are no charges for other
transactions (e.g., transferring money between investment options).
Not Applicable
5
 
FEES AND EXPENSES
Location in Prospectus
Ongoing Fees
and Expenses
(annual charges)
The table below describes the current fees and expenses of the Contract that
you may pay each year, depending on the options you choose. Interest on any
Contract loans is not reflected. The fees and expenses do not reflect any
advisory fees paid to financial intermediaries from your Contract Value or other
assets. If such charges were reflected, the fees and expenses would be higher.
Please refer to your Contract specifications page for information about the
specific fees you will pay each year based on the options you have elected.
Fee Table
Fee Table – Examples
Charges and Deductions
– Mortality and Expense
Risk Charge
Charges and Deductions
– Administration Charge
Charges and Deductions
– Account Adminis-
tration Charge
Charges and Deductions
– Optional Rider Charges
Appendix A – Underlying
Funds Available Under
the Contract
Annual Fee
Minimum
Maximum
Base Contract1
0.76%
1.01%
Investment options2
(Underlying Fund fees and expenses)
0.61%
4.44%
Optional benefits available for an additional charge3
(for a single optional benefit, if elected)
0.25%
0.70%
1
As a percentage of Contract Value allocated to the Separate Account. This amount
includes the account administration charge.
2
As a percentage of Underlying Fund average net assets.
3
As a percentage of Contract Value.
Because your Contract is customizable, the choices you make affect how much
you will pay. To help you understand the cost of owning your Contract, the
following table shows the lowest and highest cost you could pay each year
based on current charges. This estimate assumes that you do not take
withdrawals from the Contract, which could add surrender charges that
substantially increase costs.
Lowest Annual Cost: $1,253.44
Highest Annual Cost: $4,505.59
Assumes:
•Investment of $100,000
•5% annual appreciation
•Least expensive combination of
Base Contract charge and
Underlying Fund fees and
expenses
•No optional benefits
•No sales charges or advisory fees
•No additional Purchase Payments,
transfers or withdrawals
•No Contract loans
•No Credit Enhancement amounts
Assumes:
•Investment of $100,000
•5% annual appreciation
•Most expensive combination of Base
Contract charge, optional benefits,
and Underlying Fund fees and
expenses
•No sales charges or advisory fees
•No additional Purchase Payments,
transfers or withdrawals
•No Contract loans
•No Credit Enhancement amounts
 
RISKS
Location in Prospectus
Risk of Loss
You can lose money by investing in this Contract, including loss of principal.
Principal Risks of
Investing in the Contract
Not a
Short-Term
Investment
•This Contract is not designed for short-term investing and is not appropriate
for an investor who needs ready access to cash.
•Surrender charges may apply to withdrawals. If you take a withdrawal, a
surrender charge may reduce the value of your Contract or the amount of
money that you actually receive. Withdrawals may also reduce or terminate
Contract guarantees.
•The benefits of tax deferral, long-term income, and living benefit guarantees
mean the Contract is more beneficial to investors with a long time horizon.
Charges and Deductions
– Contingent Deferred
Sales Charge
The Contract – General
6
Risks
Associated with
Investment
Options
•An investment in this Contract is subject to the risk of poor investment
performance. Performance can vary depending on the performance of the
investment options that you choose under the Contract.
•Each investment option (including the Fixed Account, if available) has its
own unique risks.
•You should review the investment options before making an investment
decision.
Appendix A – Underlying
Funds Available Under
the Contract
Insurance
Company Risks
An investment in the Contract is subject to the risks related to us, First Security
Benefit Life Insurance and Annuity Company of New York. Any obligations
(including under the Fixed Account option), guarantees or benefits of the
Contract are subject to our claims-paying ability. If we experience financial
distress, we may not be able to meet our obligations to you. More information
about First Security Benefit Life Insurance and Annuity Company of New York,
including our financial strength ratings, is available upon request by calling
1-800-888-2461 or visiting www.fsbl.com.
Information About the
Company, the Separate
Account, and the
Underlying Funds – First
Security Benefit Life
Insurance and Annuity
Company of New York
 
RESTRICTIONS
Location in Prospectus
Investments
•Certain investment options may not be available under your Contract.
•Certain Subaccounts prohibit you from transferring out and back within a
period of calendar days.
•We reserve the right to limit your transfers to 14 in a Contract Year, to
suspend transfers and limit the transfer amounts, and to limit transfers in
circumstances of frequent or large transfers.
•There are certain restrictions on transfers between the Fixed Account and
Subaccounts.
•We reserve the right to add, remove or substitute the Underlying Funds
available as investment options under the Contract.
The Contract – Transfers
of Contract Value –
Frequent Transfer
Restrictions
The Fixed Account –
Transfers and
Withdrawals from the
Fixed Account
Other Information –
Changes to Investments
Optional
Benefits
•Optional benefits are only available at Contract issue. You cannot change or
cancel the benefits that you select after they are issued.
•Certain optional benefits are subject to age restrictions.
•Certain optional benefits previously offered with the Contract are no longer
available for purchase. We reserve the right to stop offering for purchase any
currently available optional benefit at any time.
•Optional benefits may limit or restrict the investment options that you may
select under the Contract. We may change these restrictions in the future.
•We do not have the right to modify or terminate an optional benefit.
Withdrawals, however, may reduce the value of an optional benefit by an
amount greater than the value withdrawn or result in termination of the
benefit.
Benefits Under the
Contract – Optional
Riders
Appendix B - Riders
Available for Purchase
Only Prior to February 1,
2010
 
TAXES
Location in Prospectus
Tax Implications
•If you elect to pay third-party advisory fees from your Contract Value, then
the deduction will reduce the death benefits and other guaranteed benefits,
perhaps significantly, and may be subject to federal and state income taxes
and a 10% federal penalty tax.
•Consult with a tax professional to determine the tax implications of an
investment in and payments received under the Contract.
•If you purchased the Contract through a tax-qualified plan or IRA, you do not
get any additional tax benefit under the Contract.
•Earnings on your Contract are taxed at ordinary income tax rates when you
withdraw them, and you may have to pay a penalty if you take a withdrawal
before age 59½.
The Contract –
Withdrawals to Pay
Advisory Fees
Charges and Deductions
– Deduction of Advisory
Fees
Federal Tax Matters
Federal Tax Matters –
Qualified Plans
7
 
CONFLICTS OF INTEREST
Location in Prospectus
Investment
Professional
Compensation
Your investment professional may receive compensation for selling this
Contract to you, in the form of commissions, additional payments, and
non-cash compensation. We may share the revenue we earn on this Contract
with your investment professional’s firm. This conflict of interest may influence
your investment professional to recommend this Contract over another
investment for which the investment professional is not compensated or is
compensated less.
Other Information – Sale
of the Contract
Exchanges
Some investment professionals may have a financial incentive to offer you a
new contract in place of the one you already own. You should only exchange a
contract you already own if you determine, after comparing the features, fees
and risks of both contracts, that it is better for you to purchase the new
contract rather than continue to own your existing contract.
Additional
Compensation Paid to
Selected Selling
Broker-Dealers
Overview of the Contract
Purpose of the Contract — The Contract is a variable annuity contract. It is designed for retirement planning purposes. You make investments in the Contract’s investment options during the accumulation phase. The value of your investments is used to calculate your benefits under the Contract. At the end of the accumulation phase, we use that accumulated value to calculate the payments that we make during the annuity phase. These payments can provide or supplement your retirement income. Generally speaking, the longer your accumulation phase, the greater your accumulated value may be for setting your benefits and annuity payouts. The Contract also includes a death benefit to help financially protect your Designated Beneficiary.
This Contract may be appropriate for you if you have a long investment time horizon. Each Purchase Payment is subject to a withdrawal charge for seven years from the date of that Purchase Payment. This means that a Purchase Payment made in year eight of the Contract will be subject to a withdrawal charge until year 15 of the Contract. Because of the withdrawal charge and the possibility of income tax and tax penalties on early withdrawals, the Contract should not be viewed as an investment vehicle offering low cost liquidity. Your financial goal in acquiring the Contract should focus on a long-term insurance product, offering the prospect of investment growth.
Phases of the Contract — The contract has two phases: (1) an accumulation phase (for savings) and (2) an annuity (payout) phase (for income).
Accumulation Phase. During the accumulation phase, earnings accumulate on a tax-deferred basis and are taxed as income when you make a withdrawal. To accumulate value during the accumulation phase, you invest your Purchase Payments and earnings in the Subaccounts that are available under the Contract, which, in turn, invest in Underlying Funds with different investment strategies, objectives, and risk/reward profiles. You may allocate all or part of your Purchase Payments and Contract Value to the Subaccounts. Amounts that you allocate to a Subaccount will increase or decrease in dollar value depending in part on the investment performance of the Underlying Fund in which such Subaccount invests. The Fixed Account option (if available under your Contract), which guarantees the principal and a minimum interest rate, may also be available for investment. If the Fixed Account is available under your Contract, you may allocate all or part of your Purchase Payments to the Fixed Account, which is part of the Company's General Account.
A list of the Underlying Funds currently available under the Contract is provided in Appendix A: Underlying Funds Available Under the Contract.
Annuity (Payout) Phase. The Annuity phase occurs after the Annuity Start Date and is when you or a designated payee begin receiving regular Annuity payments from your Contract. The Contract provides several Annuity Options. You should carefully review the Annuity Options with your financial or tax adviser. The payments may be fixed or variable or a combination of both. Variable payments will vary based on the performance of the Subaccounts you select. Unless you direct otherwise, proceeds derived from Contract Value allocated to the Subaccounts will be applied to purchase a variable annuity and proceeds derived from Contract Value allocated to the Fixed Account will be applied to purchase a fixed annuity.
Please note that if you annuitize, your investments will be converted to income payments and you generally will no longer be able to withdraw money at will from your Contract. However, there are certain payout options which provide for withdrawals. Optional benefits (e.g., the Annual Stepped Up Death Benefit) terminate upon annuitization.
8
Contract Features —
Accessing Your Money. Before your Contract is annuitized, you can withdraw money from your Contract at any time. If you take a withdrawal, you may have to pay a surrender charge and/or income taxes, including a tax penalty, if you are younger than age 59½.
Tax Treatment. You can transfer money between investment options without tax implications, and earnings (if any) on your investments are generally tax-deferred. You are taxed only upon: (1) making a withdrawal; (2) surrender of the Contract; (3) receiving a payment from us; or (4) payment of a death benefit.
Death Benefit. For Contract Owners aged 80 or younger on the Contract issue date, the Contract includes a standard death benefit that will pay the higher of Contract Value or total Purchase Payments (adjusted for any outstanding Contract Debt, any pro rata account administration charge, prior withdrawals, including any withdrawal charges, and any uncollected premium tax) upon your or the Annuitant’s death. For Contract Owners aged 81 and older on the Contract issue date, the standard death benefit will be equal to the Contract Value only. If you elect to purchase an optional rider that provides an enhanced death benefit for an additional charge, you have the opportunity to leave your beneficiary a death benefit greater than the standard death benefit.
Loans. If you own a Contract issued in connection with a retirement plan that is qualified under Section 403(b) of the Internal Revenue Code, you may be able to borrow money under your Contract using the Contract Value as the only security for the loan. A loan must be taken and repaid prior to the Annuity Commencement Date.
Extra Credit Rider. For an additional cost during the first seven Contract Years, the Company adds to your Contract Value an amount known as a Credit Enhancement, which is based on a percentage of any Purchase Payments made in the first Contract Year. In the past, we offered a version of this rider at no cost. All or a portion of your Credit Enhancement may be recaptured upon free look, surrender, withdrawal, or death.
0-Year or 4-Year Alternate Withdrawal Charge. For an additional cost, this rider makes available an alternative, shorter withdrawal charge schedule. The withdrawal charge varies depending on the Purchase Payment age and will apply in lieu of the Contract’s seven-year withdrawal charge schedule.
Optional Living Benefits. Prior to February 1, 2010, we offered various optional living benefits that, for additional charges, offer protection against market risk (the risk that your investments may decline in value or underperform your expectations) and may guarantee a minimum lifetime income.
Advisory Fees. Deductions from your Contract Value to pay third-party advisory fees are treated as withdrawals under the Contract, but no surrender charge (if applicable) is assessed on such withdrawals, and the deduction of advisory fees will not count toward the annual free withdrawal amount. If you elect to pay advisory fees from your Contract Value, then the deduction will reduce the death benefits and other guaranteed benefits, perhaps significantly, and may be subject to federal and state income taxes and a 10% federal penalty tax.
Additional Services — We offer several additional services:
 
Dollar Cost Averaging. You direct us to systematically transfer Contract Value among the Subaccounts and the Fixed Account (if available) on a monthly, quarterly, semiannual, or annual basis.
Asset Reallocation Option. You direct us to automatically reallocate your Contract Value to return to your original percentage investment allocations on a periodic basis.
Systematic Withdrawals. You receive regular automatic withdrawals from your Contract, on a monthly, quarterly, annual or semi-annual basis, provided that each payment must amount to at least $100 (unless we consent otherwise).
Fee Table
The following tables describe the fees and expenses that you will pay when buying, owning, surrendering, or making withdrawals from the Contract. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected.
The first table describes the fees and expenses that you will pay at the time that you buy the Contract, surrender or make withdrawals from the Contract, or transfer Contract Value between investment options. State premium taxes may also be deducted. The fees and expenses do not reflect any advisory fees paid to financial intermediaries from your Contract Value or other assets. If such charges were reflected, the fees and expenses would be higher.
9
Transaction Expenses
 
Charge
Sales Load on Purchase Payments
None
Maximum Surrender Charge (as a percentage of amount withdrawn attributable to Purchase Payments)
7%1
Transfer Fee (per transfer)
None
1 We also refer to this charge as a contingent deferred sales charge, withdrawal charge, and sales charge. The amount of the surrender charge
is determined by reference to how long your Purchase Payments or Bonus Credits have been held under the Contract. Free withdrawals are
available equal to (1) 10% of Purchase Payments, excluding any Credit Enhancements and/or Bonus Credits, in the first Contract Year, and (2)
10% of Contract Value as of the first Valuation Date of the Contract Year in each subsequent Contract Year. See “Full and Partial Withdrawals”
and “Contingent Deferred Sales Charge” for more information.
The next table describes the fees and expenses that you will pay each year during the time that you own the Contract (not including Underlying Fund fees and expenses). If you choose to purchase an optional rider, you will pay additional charges, as shown below.
Annual Contract Expenses
 
Charge
Administrative Expenses
$30.001
Net Loan Interest Charge (as an annual percentage of Contract Value allocated to the Loan Account)2
4.40%
Base Contract Expenses (as a percentage of average Contract Value)3
1.00%
Riders Available for Purchase with the Contract*
Annual Stepped Up Death Benefit Rider
0.25%
4% Extra Credit Rider4
0.55%
Alternate Withdrawal Charge (0-Year)
0.70%
Alternate Withdrawal Charge (4-Year)
0.60%5
10
Riders No Longer Available – Available for Purchase ONLY Prior to February 1, 2010
3% Guaranteed Minimum Income Benefit
0.25%
5% Guaranteed Minimum Income Benefit
0.40%
 
Current
Maximum
Guaranteed Minimum Withdrawal Benefit Rider6
0.55%
1.10%
3% Extra Credit4
0.40%
5% Extra Credit4
0.70%
*
If you purchase any optional riders, the charge will be deducted from your Contract Value. Total rider charges cannot exceed 2.00% of
Contract Value for riders elected prior to February 1, 2010 (1.00% for Contracts issued prior to June 19, 2006 with a 0-Year Alternate
Withdrawal Charge Rider).
1
We call this the account administration charge in your Contract, as well as in other places in this prospectus. An account administration
charge of $30 is deducted at each Contract anniversary and a pro rata account administration charge is deducted (1) upon full withdrawal of
Contract Value; (2) upon the Annuity Start Date; and (3) upon payment of a death benefit. The account administration charge will be waived
if your Contract Value is $50,000 or more on the date it is to be deducted. This fee is presented as part of the Base Contract Expenses in
the section entitled “Important Information You Should Consider About Your Contract” earlier in this prospectus.
2
The net loan cost of 4.4% is the difference between the amount of interest the Company charges you for a loan (7.4%) and the amount of
interest the Company credits to the Loan Account (3%).
3
This charge is comprised of both an annual mortality and expense risk charge and an annual administration charge. The administration
charge is equal to an annual rate of 0.15% and is deducted daily. The mortality and expense risk charge is 0.85% but is reduced for larger
Contract Values as follows: At least $25,000 but less than $100,000 – 0.70%; $100,000 or more – 0.60%. The minimum mortality and
expense risk charge of 0.60% is deducted daily. Any mortality and expense risk charge above the minimum charge is deducted from your
Contract Value on a monthly basis. During the Annuity Period, the annual mortality and expense risk charge is 1.25%, in lieu of the amounts
described above, and is deducted daily. See the discussion under Base Contract Expenses – “Mortality and Expense Risk Charge” later in
this Prospectus.
4
The Company will deduct the charge for this rider during the seven-year period beginning on the Contract Date.
5
If the Company issued your rider before September 1, 2005, the charge for the 4-year Alternate Withdrawal Charge Rider is 0.55%.
6
The Company may increase the rider charge for the Guaranteed Minimum Withdrawal Benefit Rider only if you elect a reset; the Company
guarantees the rider charge upon reset will not exceed 1.10% on an annual basis. Please see the discussion under “Guaranteed Minimum
Withdrawal Benefit” In Appendix B – Riders No Longer Available – Available for Purchase Only Prior to February 1, 2010. The current
charge for such rider is used in calculating the maximum rider charge of 1.70% (1.55% if your Contract was issued before September 1,
2005; provided however, that you may not select riders with total charges in excess of 1.00% if one of the riders you select is the 0-Year
Alternate Withdrawal Charge Rider).
The next table below shows the minimum and maximum total operating expenses charged by the Underlying Funds that you may pay periodically during the time that you own the Contract. A complete list of Underlying Funds available under the Contract, including their annual expenses, may be found in Appendix A to this Prospectus.
Annual Underlying Fund Expenses
 
Minimum
Maximum
Annual Underlying Fund Expenses (expenses deducted from Underlying Fund assets include
management fees, distribution (12b-1) fees, service fees and other expenses)
0.61%
4.44%
Net Annual Underlying Fund Expenses (after contractual waivers/reimbursements)1
0.60%
2.19%
1
Certain of the Underlying Funds have entered into contractual expense waiver or reimbursement arrangements that reduce fund expenses
during the period of the arrangement. These arrangements vary in length and are in place at least through April 30, 2025.
Examples — These Examples are intended to help you compare the cost of investing in the Contract with the cost of investing in other variable annuity contracts. These costs include transaction expenses, Annual Contract Expenses and annual Underlying Fund fees and expenses but do not include state premium taxes, which may be applicable to your Contract. The Examples do not reflect any advisory fees paid to financial intermediaries from your Contract Value or other assets. If such fees were reflected, the costs would be higher.
These Examples assume that you invest $100,000 in the Contract for the time periods indicated. The Examples also assume that your investment has a 5% return each year and you elect the most expensive combination of optional benefits available for an additional charge. The first Example assumes the most
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expensive Annual Underlying Fund Expenses. The second Example assumes the least expensive Annual Underlying Fund Expenses. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
Based on the Most Expensive Annual Underlying Fund Expenses
1 Year
3 Years
5 Years
10 Years
If you surrender your Contract at the end of the applicable time period
$13,298.25
$25,875.99
$37,139.63
$64,268.40
If you do not surrender; or if you annuitize your Contract at the end of the
applicable time period.
$7,073.52
$20,767.50
$33,878.86
$64,268.40
Based on the Least Expensive Annual Underlying Fund Expenses
1 Year
3 Years
5 Years
10 Years
If you surrender your Contract at the end of the applicable time period
$9,707.07
$15,849.53
$21,197.26
$36,130.30
If you do not surrender; or if you annuitize your Contract at the end of the
applicable time period
$3,348.28
$10,214.51
$17,313.33
$36,130.30
Principal Risks of Investing in the Contract
Risk of Investment Loss — The Contract involves risks, including possible loss of principal. You bear the risk of any decline in the Contract Value resulting from the performance of the Subaccounts you have chosen. Your losses could be significant. This risk could have a significant negative impact on certain benefits and guarantees under the Contract.
This Contract is not a deposit or obligation of, or guaranteed or endorsed by, any bank. This Contract is not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency.
Short-Term Investment Risk/Withdrawal Risk — This Contract is not designed for short-term investing and is not appropriate for an investor who needs ready access to cash. If you plan to withdraw money or surrender the Contract for short-term needs, it may not be the right contract for you. A withdrawal charge may be assessed on withdrawals and surrenders, and it could be substantial. Each Purchase Payment is subject to a withdrawal charge for seven years from the date of that Purchase Payment. This means that a Purchase Payment made in year eight of the Contract will be subject to a withdrawal charge until year 15 of the Contract. If you make a withdrawal prior to age 59½, there may be adverse tax consequences, including a 10% IRS penalty tax. A withdrawal could reduce the value of certain optional benefits by an amount greater than the amount withdrawn and could result in termination of the benefit. A total withdrawal (surrender) will result in the termination of your Contract and any benefits. The benefits of tax deferral, long-term income, and living benefit protections mean that this Contract is more beneficial to investors with a long time horizon.
Subaccount Risk — Amounts that you invest in the Subaccounts are subject to the risk of poor investment performance. You assume the investment risk. Generally, if the Subaccounts that you select make money, your Contract Value goes up, and if they lose money, your Contract Value goes down. Each Subaccount’s performance depends on the performance of its Underlying Fund. Each Underlying Fund has its own investment risks, and you are exposed to the Underlying Fund’s investment risks when you invest in a Subaccount. You are responsible for selecting Subaccounts that are appropriate for you based on your own individual circumstances, investment goals, financial situation, and risk tolerance. The investment risks are described in the prospectuses for the Underlying Funds.
Managed Volatility Fund Risk — Certain Underlying Funds utilize managed volatility strategies. These risk management techniques help us manage our financial risks associated with the Contract’s guaranteed rider benefits, like living and death benefits, because they reduce the incidence of extreme outcomes, including the probability of large gains or losses. However, these strategies can also limit your participation in rising equity markets, which may limit the potential growth of your Contract Value and guaranteed rider benefits and may therefore conflict with your personal investment objectives. In addition, the cost of these hedging strategies may negatively impact performance.
Purchase Payment Risk — Your ability to make subsequent Purchase Payments is subject to restrictions. We reserve the right to refuse any Purchase Payment, to further limit your ability to make subsequent Purchase Payments with advance notice, and to require our prior approval before accepting Purchase Payments. There is no guarantee that you will always be permitted to make Purchase Payments.
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Financial Strength and Claims-Paying Ability Risk — All guarantees under the Contract that are paid from our General Account (including under any Fixed Account option) are subject to our financial strength and claims-paying ability. If we experience financial distress, we may not be able to meet our obligations to you.
Business Disruption and Cybersecurity Risk — Our business is highly dependent upon the effective operation of our computer systems and those of our business partners, so our business is vulnerable to systems failures and cyber-attacks. Systems failures and cyber-attacks may adversely affect us, your Contract, and your Contract Value. In addition to cybersecurity risks, we are exposed to the risk that natural and man-made disasters, pandemics (like COVID-19), catastrophes, geopolitical disputes and military actions may significantly disrupt our business operations and our ability to administer the Contract. There can be no assurance that we or our service providers will be able to successfully avoid negative impacts associated with systems failures, cyber-attacks, or natural and man-made disasters, pandemics and catastrophes. We note that there may be an increased risk of cyberattacks during periods of geopolitical or military conflicts. For more information about these risks, see “More About the Contract – Cyber Security and Certain Business Continuity Risks.”
Credit Enhancement Risk — Expenses for a Contract with a Credit Enhancement may be higher than for a Contract without a Credit Enhancement. The amount of the Purchase Payment credit may be more than offset by the fees and charges associated with the credit. In addition, Credit Enhancements are excluded from the calculation of the optional living and death benefits. This means that, unlike Purchase Payments, Credit Enhancements do not increase the value of such benefits.
Tax Consequences Risk — Withdrawals are generally taxable (to the extent of any earnings on the Contract), and prior to age 59½ a tax penalty may apply. In addition, even if the Contract is held for years before any withdrawal is made, the withdrawals are taxable as ordinary income rather than capital gains.
Advisory Fee Deduction Risk — If you elect to pay third-party advisory fees from your Contract Value, then the deduction will reduce the death benefit and guaranteed rider benefits, perhaps significantly, and may be subject to federal and state income taxes and a 10% federal penalty tax.
Information About the Company, the Separate Account, and the Underlying Funds
First Security Benefit Life Insurance and Annuity Company of New York — First Security Benefit Life Insurance and Annuity Company of New York is a stock life insurance company organized under the insurance laws of the State of New York on November 8, 1994. The Company offers fixed and variable annuity contracts in New York and is admitted to do business in that state. The Company’s indirect parent, Eldridge Industries, LLC, owns, operates and invests in businesses across a wide range of sectors and is ultimately controlled by Todd L. Boehly.
The Principal Underwriter for the Contract is Security Distributors, LLC (“SDL”), One Security Benefit Place, Topeka, Kansas 66636-0001. SDL, an affiliate of the Company, is registered as a broker-dealer with the SEC and is a wholly-owned subsidiary of Security Benefit Life Insurance Company and is a member of the Financial Regulatory Authority (“FINRA”).
We are obligated to pay all amounts promised to you under your Contract. All guarantees under the Contract are subject to our financial strength and claims-paying capabilities. We provide information about our financial strength in reports filed with state insurance departments. You may obtain information about us by contacting us using the information stated on the cover page of this prospectus, visiting our website at www.fsbl.com or visiting the SEC’s website at www.sec.gov. You may also obtain reports and other financial information about us by contacting your state insurance department.
Published Ratings — The Company may from time to time publish in advertisements, sales literature and reports to Owners, the ratings and other information assigned to it by one or more independent rating organizations such as A.M. Best Company and Standard & Poor’s. The purpose of the ratings is to reflect the financial strength and/or claims-paying ability of the Company and should not be considered as bearing on the investment performance of assets held in the Separate Account. Each year A.M. Best Company reviews the financial status of thousands of insurers, culminating in the assignment of Best’s Ratings. These ratings reflect their current opinion of the relative financial strength and operating performance of an insurance company in comparison to the norms of
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the life/health insurance industry. In addition, the claims-paying ability of the Company as measured by Standard & Poor’s Insurance Ratings Services may be referred to in advertisements or sales literature or in reports to Owners. These ratings, which are subject to change, are opinions as to an operating insurance company’s financial capacity to meet the obligations of its insurance and annuity policies in accordance with their terms. Such ratings do not reflect the investment performance of the Separate Account or the degree of risk associated with an investment in the Separate Account.
Separate Account — The Company established the Separate Account under New York law on January 22, 1996. The Contract provides that the income, gains, or losses of the Separate Account, whether or not realized, are credited to or charged against the assets of the Separate Account without regard to other income, gains, or losses of the Company. The Contract contains a provision stating that assets held in the Separate Account may not be charged with liabilities arising from other business that the Company conducts. The Company owns the assets in the Separate Account and is required to maintain sufficient assets in the Separate Account to meet all Separate Account obligations under the Contract. Such Separate Account assets are not subject to claims of the Company’s creditors.
The Separate Account consists of accounts referred to as Subaccounts. The Contract provides that the income, gains and losses, whether or not realized, are credited to, or charged against, the assets of each Subaccount without regard to the income, gains or losses in the other Subaccounts. Each Subaccount invests exclusively in shares of a corresponding Underlying Fund. The Company may in the future establish additional Subaccounts of the Separate Account, which may invest in other Underlying Funds or in other securities or investment vehicles. See “Changes to Investments.”
The Separate Account is registered with the SEC as a unit investment trust under the Investment Company Act of 1940, as amended (the “1940 Act”). Registration with the SEC does not involve supervision by the SEC of the administration or investment practices of the Separate Account or of the Company. We do not guarantee the investment results of the Separate Account.
Underlying Funds — Each Underlying Fund is an open-end management investment company or a series thereof and is registered with the SEC under the 1940 Act. Such registration does not involve supervision by the SEC of the investments or investment policies of the Underlying Fund. Each Underlying Fund has its own investment objectives and policies.
As described in more detail in the Underlying Fund prospectuses, certain Underlying Funds employ managed volatility strategies that are intended to reduce the Underlying Fund’s overall volatility and downside risk, and those Underlying Funds may help us manage the risks associated with providing certain guaranteed rider benefits under the Contract. Investing in Underlying Funds with managed volatility strategies may impact the value of certain guaranteed benefits under the Contract. During rising markets, the hedging strategies employed to manage volatility could result in your Contract Value rising less than would have been the case if you had been invested in an Underlying Fund without a managed volatility strategy. In addition, the cost of these hedging strategies may negatively impact performance. On the other hand, investing in an Underlying Fund with a managed volatility strategy may be helpful in a declining market with higher market volatility because the strategy will often reduce your equity exposure in such circumstances. In such cases, your Contract Value may decline less than would have been the case if you had not invested in an Underlying Fund with a managed volatility strategy.
Certain Underlying Funds (sometimes called “alternative funds”) invest in positions that emphasize alternative investment strategies and/or nontraditional asset classes. These alternative investments involve a mix of strategies that offer potential diversification or market exposure benefits, but such alternative investment strategies may be riskier than traditional investment strategies. The strategies often involve speculative investment techniques, such as leverage and complex derivative instruments.
One of the Underlying Funds is a money market fund. There is no assurance that this Underlying Fund will be able to maintain a stable net asset value per share. In addition, during extended periods of low interest rates, and partly as a result of asset-based separate account charges, the yield on the corresponding Subaccount may become low and possibly negative.
Shares of the Underlying Funds currently are not publicly traded. They are available only as investment options in variable annuity or variable life insurance policies issued by life insurance companies or in some cases, through participation in certain qualified pension or retirement plans. Certain Underlying Funds have similar investment objectives and policies as other mutual funds managed by the same adviser. The investment results of the Underlying Funds, however, may be higher or lower than the results of such other funds. There can be no assurance,
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and no representation is made, that the investment results of any of the Underlying Funds will be comparable to the investment results of any other fund, even if both the Underlying Fund and the other fund are managed by the same adviser.
Information regarding each Underlying Fund, including its (i) name, (ii) type or investment objective, (iii) investment adviser and any sub-investment adviser, (iv) current expenses, and (v) performance, is available in an appendix to this Prospectus. See Appendix A: Underlying Funds Available Under the Contract. We cannot assure that any Underlying Fund will achieve its objective. Each Underlying Fund has issued a prospectus that contains more detailed information about the Underlying Fund. Read these prospectuses carefully before investing. Paper or electronic copies of the Underlying Fund prospectuses may be obtained by calling us at 1-800-888-2461, e-mailing us at FSBLProspectusRequests@securitybenefit.com or visiting https://dfinview.com/SecurityBenefit/TAHD/336277405?site=PFSBL.
Certain Payments the Company and its Affiliates Receive with Regard to the Underlying Funds. The Company (and its affiliates) receives payments from some of the Underlying Funds, their advisers, sub-advisers, and distributors, or affiliates thereof. The Company negotiates these payments and thus they differ by Underlying Fund (sometimes substantially), and the amounts the Company (or its affiliates) receives can be significant. Where these payments are made, the advisers, sub-advisers, or distributors (or affiliate thereof) of those Underlying Funds have increased access to the Company and its affiliates involved in the distribution of the Contract. Proceeds from these payments can be used by the Company for any corporate purpose, including payment of expenses that the Company and its affiliates incur in promoting, marketing, and administering the Contract and in the Company’s role as an intermediary for the Underlying Funds. The Company and its affiliates may profit from these payments.
12b-1 Fees. The Company and/or its affiliate, SDL, the principal underwriter for the Contract, receive 12b-1 fees from certain of the Underlying Funds that are based on a percentage of the average daily net assets of the particular Underlying Fund attributable to the Contract and certain other variable insurance contracts issued or administered by the Company (or its affiliates). 12b-1 fees are paid out of Underlying Fund assets as part of the Underlying Fund’s total annual operating expenses. Payments made out of Underlying Fund assets will reduce the amount of assets that would otherwise be available for investment, and will reduce the Underlying Fund’s investment returns. Currently, the Company and SDL receive 12b-1 fees ranging from 0.05% to 0.35% of the average net assets of the Contract (and certain other variable insurance contracts issued or administered by the Company (or its affiliates)) invested in Underlying Funds that pay 12b-1 fees.
Payments from Underlying Fund Service Providers. The Company (or its affiliates) also receives payments from the investment advisers, sub-advisers, or distributors (or affiliates thereof) of certain of the Underlying Funds. These payments may be derived, in whole or in part, from the investment advisory fee deducted from Underlying Fund assets. Owners, through their indirect investment in the Underlying Funds, bear the costs of these investment advisory fees (see the Underlying Funds’ prospectuses for more information). These payments usually are based on a percentage of the average daily net assets of the particular Underlying Fund attributable to the Contract and to certain other variable insurance contracts issued or administered by the Company (or its affiliates). Currently, the Company and its affiliates receive payments that range from 0.10% to 0.55% of the average net assets of the Contract (and certain other variable insurance contracts issued or administered by the Company (or its affiliates)) invested in an Underlying Fund.
Other Payments. In the case of certain of the Underlying Funds, the Underlying Fund’s adviser, sub-adviser, distributor, or affiliates provide the Company (or its affiliates) and/or broker-dealers that sell the Contract (“selling firms”) with wholesaling services to assist the Company in the distribution of the Contract, pay the Company (or its affiliates) and/or selling firms amounts to participate in their national and regional sales conferences and meetings with their sales desks, and/or provide the Company (or its affiliates) and/or selling firms with occasional gifts, meals, tickets, or other compensation as an incentive for them to market the Underlying Funds when offering or distribution the Contract and to cooperate with their promotional efforts for the Underlying Funds.
For details about the compensation payments the Company makes in connection with the sale of the Contract, see “Sale of the Contract.”
Total Payments. Currently, the Company and its affiliates, including SDL, receive payments from the Underlying Funds, their advisers, sub-advisers, and distributors, or affiliates thereof in the form of 12b-1 fees and/or other payments described above that range in total from a minimum of 0.25% to a maximum of 0.60% of the average net assets of the Contract (and certain other variable insurance contracts issued or administered by the Company (or its affiliates)) invested in the Underlying Funds.
Selection of Underlying Funds. The Company selects the Underlying Funds offered through the Contract based on several criteria, including asset class coverage, the strength of the investment adviser’s (or sub-adviser’s) reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Another factor the Company considers during the selection process is whether the Underlying Fund, its adviser, its
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sub-adviser, or an affiliate will make payments to the Company or its affiliates, as described above. These payment arrangements may create an incentive for us to select funds that pay us higher amounts. The Company also considers whether the Underlying Fund’s adviser is one of its affiliates, and whether the Underlying Fund, its adviser, sub-adviser, or distributor (or an affiliate) can provide marketing and distribution support for sale of the Contract. The Company reviews each Underlying Fund periodically after it is selected. Upon review, the Company may remove an Underlying Fund or restrict allocation of additional Purchase Payments and/or transfers of Contract Value to an Underlying Fund if it determines the Underlying Fund no longer meets one or more of the criteria and/or if the Underlying Fund has not attracted significant assets. The Company does not recommend or endorse any particular Underlying Fund and does not provide investment advice.
Charges and Deductions
Certain charges will be deducted in connection with the Contract, as described below.
Transaction Expenses
Contingent Deferred Sales Charge — We also refer to this charge as the surrender charge, sales charge, or withdrawal charge in this Prospectus. The Company does not deduct sales charges from Purchase Payments before crediting them to your Contract Value. However, except as set forth below, the Company may assess a contingent deferred sales charge on a full or partial withdrawal, including systematic withdrawals, depending on how long your Purchase Payments have been held under the Contract. Purchase Payments include any Bonus Credits for purposes of assessing the withdrawal charge. As such, any Bonus Credits are subject to withdrawal charges on the same basis as Purchase Payments in the event of a full or partial withdrawal of any such Bonus Credits. Purchase Payments do not include Credit Enhancements for the purpose of assessing the withdrawal charge.
The Company will waive the withdrawal charge on withdrawals to the extent that total withdrawals in a Contract Year, including systematic withdrawals, do not exceed the free withdrawal amount. The free withdrawal amount is equal in the first Contract Year to 10% of Purchase Payments, excluding any Credit Enhancements and/or Bonus Credits made during the year and for any subsequent Contract Year, to 10% of Contract Value as of the first Valuation Date of that Contract Year.
The withdrawal charge applies to the portion of any withdrawal consisting of Purchase Payments and/or Bonus Credits that exceeds the free withdrawal amount. The withdrawal charge does not apply to withdrawals of earnings. Withdrawals are considered to come first from Purchase Payments, then Bonus Credits in the order they were received and then from earnings. Free withdrawal amounts do not reduce Purchase Payments and/or Bonus Credits for the purpose of determining future withdrawal charges. Also, under the Guaranteed Minimum Withdrawal Benefit and Total Protection Riders, withdrawals of up to the Annual Withdrawal Amount are not subject to a withdrawal charge but reduce the free withdrawal amount otherwise available in that Contract Year.
The amount of the charge will depend on how long your Purchase Payments and/or Bonus Credits have been held under the Contract. Each Purchase Payment and Bonus Credit is considered to have a certain “age,” depending on the length of time since the Purchase Payment or Bonus Credit was effective. A Purchase Payment or Bonus Credit is “age one” in the year beginning on the date the Purchase Payment or Bonus Credit is applied by the Company and increases in age each year thereafter. The withdrawal charge is calculated according to the following schedule:
Purchase Payment or Bonus Credit Age (in years)
Withdrawal Charge
1
7%
2
7%
3
6%
4
5%
5
4%
6
3%
7
2%
8 and over
0%
The Company will deduct the withdrawal charge from your withdrawal payment, unless you request that the charge be deducted from remaining Contract Value and provided there is sufficient Contract Value available. If we deduct the withdrawal charge from your remaining Contract Value, the withdrawal charge is also subject to a withdrawal charge.
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Example of Withdrawal Charge Deducted from Withdrawal Payment and Deducted from Remaining Contract Value. Assume:
(i)
A withdrawal of $20,000 is requested in Contract Year 2
(ii)
The remaining free withdrawal amount in Contract Year 2 is $10,000
If the Owner requests that the withdrawal charge be deducted from the withdrawal payment, the withdrawal charge would be $700, calculated as follows:
(Withdrawal Amount – Remaining Free Withdrawal Amount) x Withdrawal Charge %
($20,000 - $10,000) x 7% = $700
The $700 withdrawal charge is deducted from the withdrawal payment before the Company sends it to the Owner. The Contract Value decreases by $20,000 and the Owner receives a total payment of $19,300 ($20,000 - $700).
If the Owner requests that the withdrawal charge be deducted from the remaining Contract Value, the withdrawal charge would be $752.69, calculated as follows:
(Withdrawal Amount - Remaining Free Withdrawal Amount)
x
Withdrawal Charge %
1– Withdrawal Charge %
($20,000 - $10,000) x (7% / (1 - 7%))
$10,000 x (7% / 93%)
$10,000 x 7.5269% = $752.69
The $752.69 withdrawal charge is deducted from the Contract Value. The Contract Value decreases by $20,752.69 ($20,000 + $752.69) and the Owner receives a total payment of $20,000.
In no event will the amount of any withdrawal charge, when added to such charge previously assessed against any amount withdrawn from the Contract, exceed 7% of Purchase Payments and Bonus Credits paid under the Contract. In addition, no withdrawal charge will be imposed upon: (1) payment of death benefit proceeds; or (2) Annuity Options that provide for payments for life, or a period of at least seven years. The Company will assess the withdrawal charge against the Subaccounts and the Fixed Account in the same proportion as the withdrawal proceeds are allocated.
The withdrawal charge is designed to reimburse the Company for costs and other expenses associated with the promotion and sale of the Contract, such as paying sales commissions to broker-dealers. It is expected that actual expenses will be greater than the amount of the withdrawal charge. To the extent that all sales expenses are not recovered from the charge, such expenses may be recovered from other charges, including amounts derived indirectly from the mortality and expense risk charge.
Premium Tax Charge — Various states and municipalities impose a tax on premiums on annuity contracts received by insurance companies. Whether or not a premium tax is imposed will depend upon, among other things, the Owner’s state of residence, the Annuitant’s state of residence, and the insurance tax laws and the Company’s status in a particular state. The Company may assess a premium tax charge to reimburse itself for premium taxes that it incurs in connection with a Contract. If assessed, the Company will deduct this charge upon the Annuity Start Date. The Company may deduct premium tax upon a full or partial withdrawal (including a systematic withdrawal or a withdrawal made to pay the fees of your investment adviser) if a premium tax has been incurred and is not refundable. No premium tax is currently imposed in the State of New York. The Company reserves the right to deduct premium taxes when due or any time thereafter.
Deduction of Advisory Fees — You may enter into a separate investment advisory agreement with an investment adviser that provides asset allocation services in connection with your Contract. We are not affiliated with those investment advisers, and we do not supervise or perform due diligence on investment advisers who may provide such asset allocation services. By entering into an agreement with the investment adviser for asset allocation services and executing the Company's investment adviser authorization form, you authorize the investment adviser to allocate your Contract Value among certain Subaccounts and make changes in your allocations from time to time, and you may authorize us to deduct amounts from your Contract Value to pay the investment adviser's fee in the
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amounts and at the times directed by the investment adviser in writing. You may terminate your investment adviser authorization at any time by sending written and signed notice of termination to our Administrative Office or submitting an electronic notice of termination to AAWF-NF@securitybenefit.com.
We will treat each deduction as a partial withdrawal from your Contract. However, no surrender charges will apply to such deductions, and the deductions will not count toward the annual free withdrawal amount. The Company will deduct the amount of the withdrawal from the Contract Value in the Subaccounts and the Fixed Account, according to the Owner’s or authorized investment adviser’s instructions to the Company. If you do not specify the allocation, the Company will deduct the withdrawal in the same proportion that Contract Value is allocated among the Subaccounts and the Fixed Account. The investment advisory fee is paid to the investment adviser and is not a Contract charge retained by us. For Non-Qualified Contracts, all or a portion of the charges deducted from your Contract Value to pay the investment adviser's fees may be subject to federal and state income tax and a 10% federal penalty tax.
The investment advisory fee is described more fully in the disclosure statement provided by the investment adviser. You should consult with your representative for details regarding the investment advisory services, including fees and expenses. A tax-free partial exchange may become taxable if an advisory fee is paid from your Contract Value within 180 days of the partial exchange. Consult your tax adviser for advice concerning tax-free partial exchanges.
Withdrawals from your Contract Value to pay advisory fees will reduce the death benefits and other guaranteed benefits under the Contract, perhaps significantly. See “Death Benefit” for an example of how withdrawals to pay advisory fees impact the Contract Value and standard death benefit.
Annual Contract Expenses
Administrative Expenses
Account Administration Charge — The Company deducts an account administration charge of $30 from Contract Value at each Contract anniversary. The Company will waive the charge if your Contract Value is $50,000 or more on the date the charge is to be deducted. The Company will deduct a pro rata account administration charge (1) upon a full withdrawal; (2) upon the Annuity Start Date; and (3) upon payment of a death benefit. This charge is not deducted during the Annuity Period. The purpose of the charge is to compensate the Company for the expenses associated with administration of the Contract.
Base Contract Expenses
Mortality and Expense Risk Charge — The Company deducts a charge for mortality and expense risks assumed by the Company under the Contract. The Company deducts a daily minimum charge equal to 0.60%, on an annual basis, of each Subaccount’s average daily net assets. If you are subject to mortality and expense risk charge above the minimum charge, the Company deducts the excess amount from your Contract Value on a monthly basis. The mortality and expense risk charge amount is determined each month by reference to the amount of your Contract Value at the time the charge is deducted, as set forth in the table below.
Contract Value
Annual Mortality and Expense Risk Charge
Less than $25,000
0.85%
At least $25,000 but less than $100,000
0.70%
$100,000 or more
0.60%
During the Annuity Period, the mortality and expense risk charge is as follows:
Annuity Option
Annual Mortality and Expense Risk Charge
Annuity Options 5 & 6
See table immediately above.
Annuity Options 1-4, 7 & 8
1.25%
The expense risk is the risk that the Company’s actual expenses in issuing and administering the Contracts and operating the Subaccounts will be more than the charges assessed for such expenses. The mortality risk borne by the Company is the risk that Annuitants, as a group, will live longer than the Company’s actuarial tables predict. In this event, the Company guarantees that annuity payments will not be affected by a change in mortality experience that results in the payment of greater annuity income than assumed under the Annuity Options in the Contract. The
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Company also assumes a mortality risk in connection with the death benefit under the Contract (i.e., for deaths occurring sooner than the Company’s actuarial tables predict).
The Company may ultimately realize a profit from this charge to the extent it is not needed to cover mortality and administrative expenses, but the Company may realize a loss to the extent the charge is not sufficient. The Company may use any profit derived from this charge for any lawful purpose, including distribution expenses. See “Determination of Contract Value” for more information about how the Company deducts the mortality and expense risk charge.
Administration Charge — The Company deducts a daily administration charge equal to an annual rate of 0.15% of each Subaccount’s average daily net assets. The purpose of this charge is to compensate the Company for the expenses associated with administration of the Contracts and operation of the Subaccounts.
The Company assesses the administration charge in order to facilitate making certain Underlying Funds available as investment options under the Contract. The Company applies the fee on all Subaccounts, but may impose a higher fee on Subaccounts that we add in the future that invest in Underlying Funds that do not provide the Company or its affiliates with the amount of revenue it requires in order for the Company to meet its revenue targets. See “Certain Payments the Company and its Affiliates Receive With Regard to the Underlying Funds” for more information on payments the Company and its affiliates may receive from the Underlying Funds and their affiliates. These payments may be used for any corporate purpose, including payment of expenses that the Company and its affiliates incur in promoting, marketing, and administering the Contract and, in its role as intermediary for, the Underlying Funds. The Company may profit from the administration charge, and may use any profit derived from this fee for any lawful purpose, including distribution expenses.
Loan Interest Charge — The Company charges an effective annual interest rate on a loan equal to 7.4%. The Company also will credit the amount in the Loan Account with an effective annual interest rate equal to 3.0%. The net cost of a loan is the interest rate charged by the Company less the interest rate credited.
Other Charges — The Company may charge the Separate Account or the Subaccounts for the federal, state, or local taxes incurred by the Company that are attributable to the Separate Account or the Subaccounts, or to the operations of the Company with respect to the Contract, or that are attributable to payment of premiums or acquisition costs under the Contract. No such charge is currently assessed. See “Tax Status of the Company and the Separate Account” and “Charge for the Company’s Taxes.”
Variations in Charges — The Company may reduce or waive the amount of the contingent deferred sales charge and certain other charges for a Contract where the expenses associated with the sale of the Contract or the administrative and maintenance costs associated with the Contract are reduced for reasons such as the amount of the initial Purchase Payment or projected Purchase Payments or the Contract is sold in connection with a group or sponsored arrangement.
Optional Rider Charges — In addition to the charges and deductions discussed above, you may purchase certain optional Riders under the Contract. The Company makes each Rider available only at issue.
The Company deducts a monthly charge from Contract Value for any Riders elected by the Owner. The Company will deduct the monthly Rider charge from Contract Value beginning on the Contract Date and ending on the Annuity Start Date. The charge for the Extra Credit Rider, however, is deducted only during the seven-year period beginning on the Contract Date. The amount of each rider charge is equal to a percentage, on an annual basis, of your Contract Value. Each rider and its charge are listed below. Currently, you may not select riders with total charges in excess of 1.00% of Contract Value if you select a 0-Year Alternate Withdrawal Charge Rider.
As noted in the table, certain riders are no longer available for purchase. For more information on these riders, see Appendix B – Riders No Longer Available – Available for Purchase Only Prior to February 1, 2010.
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Optional Rider Expenses (as a percentage of Contract Value)
 
Annual Rider Charge
Riders Available for Purchase with the Contract
Annual Stepped Up Death Benefit Rider
0.25%
4% Extra Credit Rider1
0.55%
0-Year Alternate Withdrawal Charge Rider
0.70%
4-Year Alternate Withdrawal Charge Rider
0.60%2
Riders Available for Purchase ONLY Prior to February 1, 2010
3% Guaranteed Minimum Income Benefit Rider
0.25%
5% Guaranteed Minimum Income Benefit Rider
0.40%
 
Current
Maximum
Guaranteed Minimum Withdrawal Benefit Rider3
0.55%
1.10%
3% Extra Credit Rider1
0.40%
5% Extra Credit Rider1
0.70%
1
The Company will deduct the charge for this rider during the seven-year period beginning on the Contract Date.
2
If the Company issued your rider before September 1, 2005, the charge for the 4-year Alternate Withdrawal Charge Rider is 0.55%.
3
The Company may increase the Rider charge for the Guaranteed Minimum Withdrawal Benefit Rider only if you elect a reset; the Company
guarantees the Rider charge upon reset will not exceed 1.10% on an annual basis. Please see the discussion under “Guaranteed Minimum
Withdrawal Benefit” In Appendix B – Riders No Longer Available – Available for Purchase Only Prior to February 1, 2010. The current
charge for such Rider is used in calculating the maximum Rider charge of 1.70% and 1.00% with the 0-Year Alternate Withdrawal Charge
Rider. For Contracts issued before September 1, 2005, total rider charges cannot exceed 1.55% and 1.00% with the 0-Year Alternate
Withdrawal Charge Rider.
Underlying Fund Expenses — Each Subaccount of the Separate Account purchases shares at the net asset value of the corresponding Underlying Fund. Each Underlying Fund’s net asset value reflects the investment advisory fee and other expenses that are deducted from the assets of the Underlying Fund. These fees and expenses are not deducted from the Subaccounts but are paid from the assets of the corresponding Underlying Fund. As a result, the Owner indirectly bears a pro rata portion of such fees and expenses. The advisory fees and other expenses, if any, which are more fully described in each Underlying Fund’s prospectus, are not specified or fixed under the terms of the Contract and may vary from year to year.
The Contract
General — The Company issues the Contract offered by this Prospectus. It is a flexible purchase payment deferred variable annuity. To the extent that you allocate all or a portion of your Purchase Payments to the Subaccounts, the Contract is significantly different from a fixed annuity contract in that it is the Owner under a Contract who assumes the risk of investment gain or loss rather than the Company. When you are ready to begin receiving annuity payments, the Contract provides several Annuity Options under which the Company will pay periodic annuity payments on a variable basis, a fixed basis or both, beginning on the Annuity Start Date. The amount that will be available for annuity payments will depend on the investment performance of the Subaccounts to which you have allocated Purchase Payments and the amount of interest credited on Contract Value that you have allocated to the Fixed Account.
The Contract is available for purchase by an individual as a non-tax qualified contract (“Non-Qualified Contract”). The Contract is also eligible for purchase in connection with certain tax qualified retirement plans that meet the requirements of Section 403(b), 408, or 408A of the Internal Revenue Code ("Qualified Plan"). Certain federal tax advantages are currently available to retirement plans that qualify as (1) annuity purchase plans of public school systems and certain tax-exempt organizations under Section 403(b) or (2) traditional and Roth individual retirement accounts or annuities, including traditional IRAs established by an employer under a simplified employee pension plan or a SIMPLE IRA plan, under Section 408. Joint Owners are permitted only on a Contract issued pursuant to a Non-Qualified Contract. If you are purchasing the Contract as an investment vehicle for a Section 403(b), 408, or 408A Qualified Plan, you should consider that the Contract does not provide any additional tax advantages beyond those already available through the Qualified Plan. However, the Contract does offer features and benefits in addition to providing tax deferral that other investments may not offer, including death benefit protection for your beneficiaries and annuity options which guarantee income for life. You should consult with your financial professional as to whether the overall benefits and costs of the Contract are appropriate considering your circumstances.
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Important Information About Your Benefits Under the Contract — The benefits under the Contract are paid by us from our General Account assets and/or your Contract Value held in the Separate Account. It is important that you understand that payment of benefits from the Separate Account is not guaranteed and depends upon certain factors discussed below.
Assets in the Separate Account. Your Contract permits you to allocate Purchase Payments and Contract Value to various Subaccounts. You bear all of the investment risk for allocations to the Subaccounts. Your Contract Value in the Subaccounts is part of the assets of the Separate Account. These assets are segregated and cannot be charged with liabilities arising from any other business that we may conduct.
Assets in the General Account. Your Contract may permit you to allocate Purchase Payments and Contract Value to the Fixed Account. Amounts allocated to the Fixed Account, plus any guarantees under the Contract that exceed your Contract Value (such as those associated with the guaranteed death benefit and any enhanced death benefits provided by rider, a guaranteed minimum withdrawal benefit rider, or a guaranteed minimum income benefit rider), are paid from our General Account. We issue other types of insurance policies and financial products as well, and we pay our obligations under these products from our assets in the General Account.
Any amounts that we are obligated to pay under the Contract from the General Account are subject to our financial strength and claims-paying ability. An insurance company’s financial strength and claims-paying ability may be affected by, among other factors, adverse market developments. Adverse market developments may result in, among other things, realized losses on General Account investments, unrealized losses on such investments (which may or may not result in accounting impairments), increased reserve requirements, and a reduction of capital both absolutely and relative to minimum, regulatory required capital (some of which are cash items and some of which are non-cash items). Adverse market developments are an inherent risk to our, and any insurer’s, General Account.
Application for a Contract — If you wish to purchase a Contract, you may submit an application and an initial Purchase Payment to the Company, as well as any other form or information that the Company may require. The Company reserves the right to reject an application or Purchase Payment for any reason, subject to the Company’s underwriting standards and guidelines and any applicable state or federal law relating to nondiscrimination.
The maximum age of an Owner or Annuitant for which a Contract will be issued is age 85. If there are Joint Owners or Annuitants, the maximum issue age will be determined by reference to the older Owner or Annuitant.
Purchase Payments — The minimum initial Purchase Payment for the purchase of a Contract is $10,000. Thereafter, you may choose the amount and frequency of Purchase Payments, except that the minimum subsequent Purchase Payment is $500. The minimum subsequent Purchase Payment if you elect an Automatic Investment Program is $50. The Company may reduce the minimum Purchase Payment requirement under certain circumstances. The Company will not accept, without prior Company, approval aggregate Purchase Payments in an amount that exceeds $1,000,000 under any variable annuity contract(s) issued by the Company for which you are an Owner and/or Joint Owner. The Company has the right to refuse any Purchase Payment and to cease accepting Purchase Payments.
The Company will apply the initial Purchase Payment not later than the end of the second Valuation Date after the Valuation Date it is received by the Company, in good order. In this regard “good order” means that the Purchase Payment is preceded or accompanied by an application that contains sufficient information to establish an account and properly credit such Purchase Payment. The application form will be provided by the Company. If you submit your application and/or initial Purchase Payment to your registered representative, the Company will not begin processing the application and the initial Purchase Payment until the Company receives them from your representative’s broker-dealer.
Sometimes the Purchase Payment is not preceded by or accompanied by a complete application. The application includes your affirmative consent permitting the Company to hold your initial Purchase Payment beyond five Valuation Dates in its effort to complete your application. If your application is incomplete, and the Company is unable to resolve the problem within five Valuation Dates, the Company will notify you of the reasons for the delay. If you affirmatively revoke the consent given with your application to hold your initial Purchase Payment pending resolution of the problem, we will return your Purchase Payment. Otherwise, the Purchase Payment will be applied not later than the second Valuation Date after the Valuation Date the problem is resolved.
The Company will credit subsequent Purchase Payments as of the end of the Valuation Period in which they are received by the Company at its Administrative Office; however, subsequent Purchase Payments received at or after close of a Valuation Date (normally 3:00 p.m. Central time) will be effected at the Accumulation Unit value determined on the following Valuation Date. See “Cut-Off Times.” In addition, any such Purchase Payment will not be processed until it is in good order. In this regard, “good order” means that the Purchase Payment is preceded or
21
accompanied by sufficient information to properly credit such Purchase Payment. Purchase Payments after the initial Purchase Payment may be made at any time prior to the Annuity Start Date, so long as the Owner is living. Subsequent Purchase Payments under a Qualified Plan may be limited by the terms of the plan and provisions of the Internal Revenue Code. Subsequent Purchase Payments may be paid under an Automatic Investment Program. The initial Purchase Payment required must be paid before the Company will accept the Automatic Investment Program. If you submit a subsequent Purchase Payment to your registered representative, the Company will not begin processing the Purchase Payment until the Company receives it from your representative’s broker-dealer.
If mandated under applicable law, the Company may be required to reject a Purchase Payment. The Company also may be required to provide additional information about the Owner’s account to government regulators. In addition, the Company may be required to block the Owner’s account and thereby refuse to pay any request for transfers, full or partial withdrawals (including systematic withdrawals), or death benefits until instructions are received from the appropriate regulator.
Allocation of Purchase Payments — In an application for a Contract, you select the Subaccounts and/or the Fixed Account to which Purchase Payments will be allocated. Purchase Payments will be allocated according to your instructions contained in the application or more recent instructions received, if any, except that no Purchase Payment allocation is permitted that would result in less than $25.00 per payment being allocated to any one Subaccount. The allocations must be a whole dollar amount or a whole percentage. Available allocation alternatives include the Subaccounts and the Fixed Account (if available).
You may change the Purchase Payment allocation instructions by submitting a proper written request to the Company’s Administrative Office. A proper change in allocation instructions will be effective upon receipt by the Company at its Administrative Office and will continue in effect until you submit a change in instructions to the Company. You may make changes in your Purchase Payment allocation and changes to an existing Dollar Cost Averaging or Asset Reallocation Option (each, an “Automatic Allocation Program”) by telephone provided the proper form is properly completed, signed, and received by the Company at its Administrative Office. Changes in the allocation of future Purchase Payments have no effect on existing Contract Value. You may, however, transfer Contract Value among the Subaccounts and/or the Fixed Account in the manner described in “Transfers of Contract Value.”
Fund Liquidations. If your allocation instructions include a Subaccount that has become no longer available due to a fund liquidation, upon advance notice to you and unless you otherwise instruct us, we will allocate the applicable portion of any subsequent Purchase Payments to the Invesco V.I. Government Money Market Subaccount, and any automatic allocation instructions for scheduled transfers that include a Subaccount that is no longer available due to a fund liquidation will be terminated. If you wish to set up a new Dollar Cost Averaging Option or Asset Reallocation Option (without the Subaccount that is no longer available due to a fund liquidation), you will need to submit a new form to us. If you request a transfer of Contract Value to a Subaccount that is no longer available due to a fund liquidation, we will consider your request to not be in good order, and we will not process it. In such cases, we will contact you for further instructions.
Closed Subaccounts. We reserve the right to close Subaccounts. If we close a Subaccount (a “Closed Subaccount”), you may be prevented from allocating Purchase Payments or Contract Value to that Subaccount. The table below lists the Closed Subaccounts, and the effective date on which the Subaccounts were closed or will close.
Closed Subaccounts
Effective Date
Lord Abbett Series Developing Growth VC
May 5, 2021
In the event that we receive a request to allocate Purchase Payments or Contract Value to a Closed Subaccount, we will handle that transaction as follows:
New Applications. If we receive an application for a Contract with an allocation to a Closed Subaccount, we will consider the application to be incomplete and we will attempt to contact the applicant to get revised instructions. The Company will hold the Purchase Payment in its General Account and may take up to five Valuation Dates to resolve the problem. If the Company is unable to resolve the problem within five Valuation Dates, the Company will notify the applicant of the reasons for the delay. If the applicant affirmatively revokes the consent given with their application to hold the initial Purchase Payment pending resolution of the problem, we will return the applicant’s Purchase Payment. Otherwise, the Purchase Payment will be applied not later than the second Valuation Date after the Valuation Date the problem is resolved.
Existing Contracts. Except as provided below, if we receive a Purchase Payment for an existing Contract with an allocation a Closed Subaccount, we will allocate the applicable portion of the payment to the Invesco V.I. Government Money Market Subaccount. If you have automatic allocation instructions designating allocation to a
22
Closed Subaccount pursuant to an Automatic Allocation Program as of the date that a Subaccount is closed, your automatic allocation instructions will be terminated as of the close of business on that date. If you wish to set up a new Dollar Cost Averaging Option or Asset Reallocation Option (without the Closed Subaccount), you will need to submit a new form to our Administrative Office. If you request a transfer of Contract Value to a Closed Subaccount, we will consider your request to not be in good order, and we will not process it. In such cases, we will contact you for further instructions.
Notwithstanding the foregoing:
•
If you had Contract Value allocated to the Lord Abbett Series Developing Growth VC Subaccount on May 5, 2021, your Contract Value will remain invested in that Subaccount and you may continue to allocate Purchase Payments or transfer Contract Value to or from that Subaccount, subject to transfer restrictions. Automatic allocation instructions involving the Lord Abbett Series Developing Growth VC Subaccount pursuant to an Automatic Allocation Program will remain in effect.
Dollar Cost Averaging Option — For no additional charge, prior to the Annuity Start Date, you may dollar cost average your Contract Value by authorizing the Company to make periodic transfers of Contract Value from any one Subaccount to one or more of the other Subaccounts. Dollar cost averaging is a systematic method of investing in which securities are purchased at regular intervals in fixed dollar amounts so that the cost of the securities gets averaged over time and possibly over various market cycles. The option will result in the transfer of Contract Value from one Subaccount to one or more of the other Subaccounts. Amounts transferred under this option will be credited at the price of the Subaccount as of the end of the Valuation Dates on which the transfers are effected. Since the price of a Subaccount’s Accumulation Units will vary, the amounts transferred to a Subaccount will result in the crediting of a greater number of units when the price is low and a lesser number of units when the price is high. Similarly, the amounts transferred from a Subaccount will result in a debiting of a greater number of units when the price is low and a lesser number of units when the price is high. Dollar cost averaging does not guarantee profits, nor does it assure that you will not have losses.
A Dollar Cost Averaging form is available upon request. On the form, you must designate whether Contract Value is to be transferred on the basis of a specific dollar amount, a fixed period or earnings only, the Subaccount or Subaccounts to and from which the transfers will be made, the desired frequency of the transfers, which may be on a monthly, quarterly, semiannual or annual basis, and the length of time during which the transfers shall continue or the total amount to be transferred over time. The minimum amount that may be transferred to any one Subaccount is $25.00. The Company does not require that transfers be continued over any minimum period of time, although typically dollar cost averaging would extend over a period of at least one year.
After the Company has received a Dollar Cost Averaging request in proper form at its Administrative Office, the Company will transfer Contract Value in the amounts you designate from the Subaccount from which transfers are to be made to the Subaccount or Subaccounts you have chosen. The Company will effect each transfer on the date you specify or if no date is specified, on the monthly, quarterly, semiannual or annual anniversary, whichever corresponds to the period selected, as of the date of receipt at the Administrative Office of a Dollar Cost Averaging request in proper form. Transfers will be made until the total amount elected has been transferred, or until Contract Value in the Subaccount from which transfers are made has been depleted. Amounts periodically transferred under this option are not included in the six transfers per Contract Year that generally are allowed as discussed under “Transfers and Withdrawals from the Fixed Account."
You may make changes to the option by writing to the Company’s Administrative Office or by telephone provided the proper form is completed, signed, and received by the Company. You may instruct the Company at any time to terminate the option by written request to the Company’s Administrative Office. In that event, the Contract Value in the Subaccount from which transfers were being made that has not been transferred will remain in that Subaccount unless you instruct us otherwise. If you wish to continue transferring on a dollar cost averaging basis after the expiration of the applicable period, the total amount elected has been transferred, or the Subaccount has been depleted, or after the Dollar Cost Averaging Option has been canceled, a new Dollar Cost Averaging form must be completed and sent to the Administrative Office. The Company requires that you wait at least one month if transfers were made on a monthly basis, or one quarter if transfers were made on a quarterly, semiannual or annual basis, before reinstating Dollar Cost Averaging after it has been terminated for any reason. The Company may discontinue, modify, or suspend the Dollar Cost Averaging Option at any time. The Company does not currently charge a fee for this option. If you elect the Dollar Cost Averaging Option, you may also elect the Asset Reallocation Option.
You may also dollar cost average Contract Value to or from the Fixed Account, subject to certain restrictions described under “Transfers and Withdrawals from the Fixed Account.” You may not have in effect at the same time Dollar Cost Averaging and Asset Reallocation Options, if the Fixed Account is included in one of these two options.
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Asset Reallocation Option — For no additional charge, prior to the Annuity Start Date, you may authorize the Company to automatically transfer Contract Value on a monthly, quarterly, semiannual or annual basis to maintain a particular percentage allocation among the Subaccounts. The Contract Value allocated to each Subaccount will grow or decline in value at different rates during the selected period, and Asset Reallocation automatically reallocates the Contract Value in the Subaccounts to the allocation you selected on a monthly, quarterly, semiannual or annual basis, as you select. Asset Reallocation is intended to transfer Contract Value from those Subaccounts that have increased in value to those Subaccounts that have declined in value. Over time, this method of investing may help you buy low and sell high. This investment method does not guarantee profits, nor does it assure that you will not have losses.
To elect this option an Asset Reallocation request in proper form must be received by the Company at its Administrative Office. An Asset Reallocation form is available upon request. On the form, you must indicate the applicable Subaccounts, the applicable time period and the percentage of Contract Value to be allocated to each Subaccount.
Upon receipt of the Asset Reallocation form, the Company will effect a transfer or, in the case of a new Contract, will allocate the initial Purchase Payment among the Subaccounts based upon the percentages that you selected. Thereafter, the Company will transfer Contract Value to maintain that allocation on each monthly, quarterly, semiannual or annual anniversary, as applicable, as of the date of the Company’s receipt of the Asset Reallocation request in proper form. The amounts transferred will be credited at the price of the Subaccount as of the end of the Valuation Date on which the transfer is effected. Amounts periodically transferred under this option are not included in the six transfers per Contract Year that generally are allowed as discussed under “Transfers and Withdrawals from the Fixed Account."
You may make changes to the option by writing to the Company’s Administrative Office or by telephone provided the proper form is completed, signed, and received at the Company’s Administrative Office. You may instruct the Company at any time to terminate this option by written request to the Company’s Administrative Office. In that event, the Contract Value in the Subaccounts that has not been transferred will remain in those Subaccounts regardless of the percentage allocation unless you instruct us otherwise. If you wish to continue Asset Reallocation after it has been canceled, a new Asset Reallocation form must be completed and sent to the Company’s Administrative Office. The Company may discontinue, modify, or suspend, and reserves the right to charge a fee, for the Asset Reallocation Option at any time. The Company does not currently charge a fee for this option. If you elect the Asset Reallocation Option, you may also elect the Dollar Cost Averaging Option.
Contract Value allocated to the Fixed Account may be included in the Asset Reallocation Option, subject to certain restrictions described in “Transfers and Withdrawals from the Fixed Account.” You may not have in effect at the same time Dollar Cost Averaging and Asset Reallocation Options, if the Fixed Account is included in one of these two options.
Transfers of Contract Value — You may transfer Contract Value among the Subaccounts upon proper written request to the Company’s Administrative Office both before and after the Annuity Start Date. You may make transfers (other than transfers pursuant to the Dollar Cost Averaging and Asset Reallocation Options) by telephone if the Electronic Transfer Privilege section of the application or the proper form has been completed, signed and received at the Company’s Administrative Office. The minimum transfer amount is $500, or the amount remaining in a given Subaccount. The minimum transfer amount does not apply to transfers under the Dollar Cost Averaging or Asset Reallocation Options.
The Company generally effects transfers between or from the Subaccounts at their respective Accumulation Unit values as of the close of the Valuation Period during which the transfer request is received; however, transfer requests received at or after the close of a Valuation Date (normally 3:00 p.m. Central Time) will be effected at the Accumulation Unit value determined on the following Valuation Date. See “Cut-Off Times.” In addition, a transfer request will not be processed until it is in good order. In this regard, “good order” means that the transfer request is preceded or accompanied by sufficient information to properly execute the transfer.
You may also transfer Contract Value to the Fixed Account; however, transfers from the Fixed Account to the Subaccounts are restricted as described in “The Fixed Account.”
Frequent Transfer Restrictions. The Contract is not designed for organizations or individuals engaging in a market timing strategy, or making programmed transfers, frequent transfers or transfers that are large in relation to the total assets of an Underlying Fund. These kinds of strategies and transfer activities may disrupt portfolio management of the Underlying Funds in which the Subaccounts invest (such as requiring the Underlying Fund to maintain a high level of cash or causing an Underlying Fund to liquidate investments prematurely to pay withdrawals), hurt Underlying Fund performance, and drive Underlying Fund expenses (such as brokerage and administrative expenses) higher, which are reflected in Underlying Fund performance. In addition, because other
24
insurance companies and/or retirement plans may invest in the Underlying Funds, the risk exists that the Underlying Funds may suffer harm from programmed, frequent, or large transfers among subaccounts of variable contracts issued by other insurance companies or among investment options available to retirement plan participants. These risks and costs are borne by all shareholders of an affected Underlying Fund, Owners and Participants with Contract Value allocated to the corresponding Subaccount (as well as their Designated Beneficiaries and Annuitants) and long-term investors who do not generate these costs.
The Company has in place policies and procedures designed to restrict transfers if we determine that you are engaging in a pattern of transfers that is disruptive to the Underlying Funds or potentially disadvantageous to other Owners and Participants with Contract Value allocated to the applicable Subaccount (regardless of the number of previous transfers the Owner or Participant has made during the Contract Year). In making this determination, we monitor transfers among the Subaccounts and consider, among other things, the following factors:
•
the total dollar amount being transferred;
•
the number of transfers you made within a period of time;
•
transfers to and from (or from and to) the same Subaccount;
•
whether your transfers appear to follow a pattern designed to take advantage of short-term market fluctuations; and
•
whether your transfers appear to be part of a group of transfers made by a third party on behalf of the individual Owners in the group.
There is a risk that some Owners and Participants may engage in transfer activity in a manner that is disruptive to the Underlying Funds or potentially disadvantageous to other Owners and Participants, which may have a negative impact on such other Owners and Participants. If the Company determines that your transfer patterns among the Subaccounts are disruptive to the Underlying Funds or potentially disadvantageous to Owners and Participants, the Company may send you a letter notifying you that it is prohibiting you from making telephone transfers or other electronic transfers and instead requiring that you submit transfer requests in writing via regular U.S. mail for a disclosed period beginning on the date of the letter.
In addition, if you make a transfer from any of the Subaccounts listed below, then you may not make a transfer to that same Subaccount for a period of calendar days equal to the amount listed in the table below in the column titled “Transfer Block Restriction.” The Transfer Block Restriction applies only on Subaccount transfer amounts greater than $5,000. The calendar day after the date of the transfer out of the particular Subaccount is considered day 1 for the purpose of computing the period before a transfer to the same Subaccount may be made. For example, if you transfer money out of the Guggenheim VIF SMid Cap Value Subaccount on April 16, the 30 day restriction begins on April 17 and ends on May 16, which means you could transfer back into the Guggenheim VIF SMid Cap Value Subaccount on May 17. This restriction does not apply to transfers made pursuant to the Dollar Cost Averaging and Asset Reallocation Options.
Subaccount
Transfer
Block Restriction
(# of Calendar Days)
AB Discovery Value, AB VPS Dynamic Asset Allocation
30 days
American Funds IS® Asset Allocation, American Funds IS® Capital World Bond, American
Funds IS® Global Growth, American Funds IS® Growth-Income, American Funds IS®
International, American Funds IS® New World
30 days
BlackRock Equity Dividend V.I., BlackRock Global Allocation V.I., BlackRock High Yield V.I.
30 days
BNY Mellon IP MidCap Stock, BNY Mellon IP Small Cap Stock Index, BNY Mellon IP
Technology Growth, BNY Mellon VIF Appreciation
60 days
ClearBridge Variable Growth, ClearBridge Variable Small Cap Growth
30 days
Fidelity® VIP Equity-Income, Fidelity® VIP Growth & Income, Fidelity® VIP Growth
Opportunities, Fidelity® VIP High Income, Fidelity® VIP Overseas
60 days
Franklin Allocation VIP Fund, Franklin Income VIP Fund, Franklin Mutual Global Discovery
VIP Fund, Franklin Small Cap Value VIP Fund, Franklin Strategic Income VIP Fund
30 days
25
Subaccount
Transfer
Block Restriction
(# of Calendar Days)
Guggenheim VIF All Cap Value, Guggenheim VIF Alpha Opportunity, Guggenheim VIF
Floating Rate Strategies, Guggenheim VIF Global Managed Futures Strategy, Guggenheim
VIF High Yield, Guggenheim VIF Large Cap Value, Guggenheim VIF Long Short Equity,
Guggenheim VIF Managed Asset Allocation, Guggenheim VIF SMid Cap Value,
Guggenheim VIF Multi-Hedge Strategies, Guggenheim VIF Small Cap Value, Guggenheim
VIF StylePlus Large Core, Guggenheim VIF StylePlus Large Growth, Guggenheim VIF
StylePlus Mid Growth, Guggenheim VIF StylePlus Small Growth, Guggenheim VIF Total
Return Bond, Guggenheim VIF World Equity Income
30 days
Invesco V.I. Discovery Mid Cap Growth, Invesco V.I. Global, Invesco V.I. Main Street Small
Cap, Invesco V.I. Core Plus Bond, Invesco V.I. Comstock, Invesco V.I. Equity and Income,
Invesco V.I. EQV International Equity, Invesco V.I. Global Real Estate, Invesco V.I.
Government Securities, Invesco V.I. Health Care, Invesco V.I. Main Street Mid Cap, Invesco
V.I. Value Opportunities, Invesco V.I. American
30 days
Invesco V.I. Government Money Market
Unlimited
Janus Henderson VIT Enterprise, Janus Henderson VIT Research
30 days
Lord Abbett Series Bond-Debenture VC, Lord Abbett Series Developing Growth VC
30 days
LVIP American Century Mid Cap Value, LVIP American Century Ultra®, LVIP American
Century Value
30 days
LVIP JPMorgan Core Bond
30 days
Macquarie VIP Asset Strategy
60 days
MFS® VIT II Research International, MFS® VIT Total Return, MFS® VIT Utilities
30 days
Morgan Stanley VIF Emerging Markets Equity
30 days
Morningstar Aggressive Growth ETF Asset Allocation Portfolio, Morningstar Balanced ETF
Asset Allocation Portfolio, Morningstar Conservative ETF Asset Allocation Portfolio,
Morningstar Growth ETF Asset Allocation Portfolio, Morningstar Income and Growth ETF
Asset Allocation Portfolio
30 days
Neuberger Berman AMT Sustainable Equity
30 days
PIMCO VIT All Asset, PIMCO VIT CommodityRealReturn Strategy, PIMCO VIT Emerging
Markets Bond, PIMCO VIT International Bond Portfolio (U.S. Dollar-Hedged), PIMCO VIT
Low Duration, PIMCO VIT Real Return, PIMCO VIT Total Return
30 days
Putnam VT Small Cap Value
30 days
Royce Micro-Cap
30 days
T. Rowe Price Health Sciences
30 days
Templeton Developing Markets VIP Fund, Templeton Global Bond VIP Fund
30 days
Western Asset Variable Global High Yield Bond
30 days
In addition to the Company’s own frequent transfer procedures, the Underlying Funds may have adopted their own policies and procedures with respect to frequent transfer of their respective shares, and the Company reserves the right to enforce these policies and procedures. The prospectuses for the Underlying Funds describe any such policies and procedures, which may be more or less restrictive than the policies and procedures the Company has adopted. In particular, some of the Underlying Funds have reserved the right to temporarily or permanently refuse payments or transfer requests from the Company if, in the judgment of the Underlying Fund’s manager, the Underlying Fund would be unable to invest effectively in accordance with its investment objective or policies, or would otherwise potentially be adversely affected.
You should be aware that the Company currently may not have the contractual obligation or the operational capacity to apply the Underlying Funds’ frequent transfer policies and procedures. However, under SEC rules, the Company is required to: (1) enter into a written agreement with each Underlying Fund or its principal underwriter that obligates the Company to provide to the Underlying Fund promptly upon request certain information about the trading activity of individual Owners and Participants, and (2) execute instructions from the Underlying Fund to restrict or prohibit further purchases or transfers by specific Owners and Participants who violate the frequent transfer policies established by the Underlying Fund.
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Managers of the Underlying Funds may contact the Company if they believe or suspect that there is market timing or other potentially harmful trading, and, if so, the Company will take appropriate action to protect others. In particular, the Company may, and the Company reserves the right to, reverse a potentially harmful transfer. If the Company reverses a potentially harmful transfer, it will effect such reversal not later than the close of business on the second Valuation Date following the Valuation Date in which the original transfer was effected, and the Company will inform the Owner or Participant in writing at his or her address of record.
To the extent permitted by applicable law, the Company also reserves the right to reject a transfer request at any time that the Company is unable to purchase or redeem shares of any of the Underlying Funds because of any refusal or restriction on purchases or redemptions of their shares as a result of the Underlying Fund’s policies and procedures on market timing activities or other potentially abusive transfers. The Company also reserves the right to implement, administer, and collect redemption fees imposed by one or more of the Underlying Funds in the future. You should read the prospectuses of the Underlying Funds for more details on their ability to refuse or restrict purchases or redemptions of their shares.
In its sole discretion, the Company may revise its market timing procedures at any time without prior notice as the Company deems necessary or appropriate to better detect and deter programmed, frequent, or large transfers that may adversely affect other Owners, Participants, or Underlying Fund shareholders, to comply with state or federal regulatory requirements, or to impose additional or alternate restrictions on market timers (such as dollar or percentage limits on transfers). The Company may change its parameters to monitor for factors other than transfer block restrictions. For purposes of applying the parameters used to detect potential market timing and other potentially harmful activity, the Company may aggregate transfers made in two or more Contracts that it believes are connected (for example, two Contracts with the same Owner or Participant, or owned by spouses, or owned by different partnerships or corporations that are under common control, etc.).
The Company does not include transfers made pursuant to Dollar Cost Averaging and Asset Reallocation Options in these limitations. The Company may vary its market timing procedures from Subaccount to Subaccount, and may be more restrictive with regard to certain Subaccounts than others. The Company may not always apply these detection methods to Subaccounts investing in Underlying Funds that, in its judgment, would not be particularly attractive to market timers or otherwise susceptible to harm by frequent transfers.
Owners and Participants seeking to engage in programmed, frequent, or large transfer activity may deploy a variety of strategies to avoid detection. The Company’s ability to detect and deter such transfer activity is limited by operational systems and technological limitations. Furthermore, the identification of Owners and Participants determined to be engaged in transfer activity that may adversely affect other Owners, Participants, or Underlying Fund shareholders involves judgments that are inherently subjective. Accordingly, despite its best efforts, the Company cannot guarantee that its market timing procedures will detect every potential market timer, but the Company applies its market timing procedures consistently to all Owners and Participants without special arrangement, waiver, or exception, aside from allocations to the Invesco V.I. Government Money Market Subaccount, which does not limit or restrict transfers. Because other insurance companies and/or retirement plans may invest in the Underlying Funds, the Company cannot guarantee that the Underlying Funds will not suffer harm from programmed, frequent, or large transfers among subaccounts of variable contracts issued by other insurance companies or among investment options available to retirement plan participants.
The Company does not limit or restrict transfers to or from the Invesco V.I. Government Money Market Subaccount. As stated above, market timing and frequent transfer activities may disrupt portfolio management of the Underlying Funds, hurt Underlying Fund performance, and drive Underlying Fund expenses higher, which are reflected in Underlying Fund performance.
Because the Company does not reserve the unfettered right to prohibit transfers, it cannot guarantee that it can restrict or deter all harmful transfer activity, Owners and Participants bear the risks associated with such activity, including potential disruption of portfolio management of the Underlying Funds and potentially lower Underlying Fund performance and higher Underlying Fund expenses. In addition, there is a risk that the Company will not detect harmful transfer activity on the part of some Owners and Participants and, as a result, the Company will inadvertently treat those Owners and Participants differently than Owners and Participants it does not permit to engage in harmful transfer activity. Moreover, due to the Company’s operational and technological limitations, as well as possible variations in the market timing policies of other insurance companies and/or retirement plans that may also invest in the Underlying Funds, some Owners and Participants may be treated differently than others. Consequently, there is a risk that some Owners and Participants may be able to engage in market timing while others suffer the adverse effects of such trading activities.
27
Contract Value — The Contract Value is the sum of the amounts under your Contract held in each Subaccount and the Fixed Account as well as any amount set aside in the Loan Account to secure loans as of any Valuation Date.
On each Valuation Date, the amount of Contract Value allocated to any particular Subaccount will be adjusted to reflect the investment experience of that Subaccount. See “Determination of Contract Value.” Contract Value allocated to the Subaccounts is not guaranteed by the Company. You bear the entire investment risk relating to the investment performance of Contract Value allocated to the Subaccounts.
Determination of Contract Value — Your Contract Value will vary depending upon several factors, including:
•
Investment performance of the Subaccounts to which you have allocated Contract Value,
•
Interest credited to the Fixed Account,
•
Payment of Purchase Payments,
•
The amount of any outstanding Contract Debt,
•
Full and partial withdrawals (including systematic withdrawals and withdrawals to pay advisory fees), and
•
Charges assessed in connection with the Contract, including charges for any optional Riders selected.
The amounts allocated to a Subaccount will be invested in shares of the corresponding Underlying Fund. The investment performance of each Subaccount will reflect increases or decreases in the net asset value per share of the corresponding Underlying Fund and any dividends or distributions declared by the Underlying Fund. Any dividends or distributions from any Underlying Fund will be automatically reinvested in shares of the same Underlying Fund, unless the Company, on behalf of the Separate Account, elects otherwise.
Assets in the Subaccounts are divided into Accumulation Units, which are accounting units of measure used to calculate the value of an Owner’s interest in a Subaccount. When you allocate Purchase Payments to a Subaccount, your Contract is credited with Accumulation Units. The number of Accumulation Units to be credited is determined by dividing the dollar amount, including any Credit Enhancements, allocated to the particular Subaccount by the price for the Subaccount’s Accumulation Units as of the end of the Valuation Period in which the Purchase Payment is credited.
In addition, other transactions such as loans, full or partial withdrawals (including systematic withdrawals and withdrawals to pay advisory fees), transfers, and assessment of certain charges against the Contract affect the number of Accumulation Units attributable to a Contract. The number of units credited or debited in connection with any such transaction is determined by dividing the dollar amount of such transaction by the price of the Accumulation Unit of the affected Subaccount next determined after receipt of the transaction request (subject to any applicable requirements that the transaction be in good order, as described herein). The price of each Subaccount is determined on each Valuation Date as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 3:00 p.m. Central time. Transactions received at or after that time on any Valuation Date will be effected at the Accumulation Unit value determined on the following Valuation Date. See “Cut-Off Times.” The price of each Subaccount may be determined earlier if trading on the NYSE is restricted or as permitted by the SEC.
The number of Accumulation Units credited to a Contract shall not be changed by any subsequent change in the value of an Accumulation Unit, but the dollar value of an Accumulation Unit may vary from Valuation Date to Valuation Date depending upon the investment experience of the Subaccount and charges against the Subaccount.
The price of each Subaccount’s units initially was $10. The price of a Subaccount on any Valuation Date takes into account the following: (1) the investment performance of the Subaccount, which is based upon the investment performance of the corresponding Underlying Fund, (2) any dividends or distributions paid by the corresponding Underlying Fund, (3) the charges, if any, that may be assessed by the Company for taxes attributable to the operation of the Subaccount, (4) the minimum mortality and expense risk charge under the Contract of 0.60%, (5) the administration charge under the Contract of 0.15%, and (6) the deduction of the Underlying Fund’s fees and expenses.
The minimum mortality and expense risk charge of 0.60% and the administration charge of 0.15% are factored into the Accumulation Unit value or “price” of each Subaccount on each Valuation Date. The Company deducts any mortality and expense risk charge above the minimum charge and the charge for any optional riders (the “Excess Charge”) on a monthly basis. Each Subaccount declares a monthly subaccount adjustment and the Company deducts the Excess Charge from this monthly subaccount adjustment upon its reinvestment in the Subaccount. The
28
Excess Charge is a percentage of your Contract Value allocated to the Subaccount as of the reinvestment date. The monthly subaccount adjustment is paid only for the purpose of collecting the Excess Charge. Assuming that you owe a charge above the minimum mortality and expense risk charge and the administration charge, your Contract Value will be reduced in the amount of your Excess Charge upon reinvestment of the Subaccount’s monthly subaccount adjustment. The Company deducts the Excess Charge only upon reinvestment of the monthly subaccount adjustment and does not assess an Excess Charge upon a full or partial withdrawal from the Contract. The Company reserves the right to compute and deduct the Excess Charge from each Subaccount on each Valuation Date. See the Statement of Additional Information for a more detailed discussion of how the Excess Charge is deducted.
Cut-Off Times — Any financial transactions involving your Contract, including those submitted by telephone, must be received by us prior to any announced closing of regular trading on the NYSE (the “cut-off time”) to be processed on the current Valuation Date. The NYSE normally closes at 3:00 p.m. Central time so financial transactions normally must be received prior to that time. Financial transactions received at or after the applicable cut-off time will be processed on the following Valuation Date. Financial transactions include loans, transfers, full and partial withdrawals (including systematic withdrawals and withdrawals to pay investment advisory fees), death benefit payments, and Purchase Payments.
Full and Partial Withdrawals — An Owner may make a partial withdrawal of Contract Value or surrender the Contract for its Withdrawal Value. A full or partial withdrawal, including a systematic withdrawal, may be taken from Contract Value at any time while the Owner is living and before the Annuity Start Date, subject to limitations under the applicable plan for Qualified Plans and applicable law. Withdrawals (other than systematic withdrawals) after the Annuity Start Date are permitted only under Annuity Option 5. See “Annuity Period.” A full or partial withdrawal request will be effective as of the end of the Valuation Period that it is received by the Company at its Administrative Office; however, if the request is received on a Valuation Date at or after the cut-off time, the withdrawal will be effected at the Accumulation Unit value determined on the following Valuation Date. See “Cut-Off Times.” In addition, a withdrawal will not be processed until it is in good order. In this regard, “good order” means that the withdrawal request is accompanied by a properly completed Withdrawal Request form (including the Owner’s signature and the written consent of any effective assignee or irrevocable beneficiary, if applicable)
The proceeds received upon a full withdrawal will be the Contract’s Withdrawal Value. The Withdrawal Value is equal to the Contract Value as of the end of the Valuation Period during which the withdrawal is processed, less any outstanding Contract Debt, any applicable withdrawal charge (if the withdrawal is made from Purchase Payments that have been held in the Contract for less than seven years), a pro rata account administration charge and any uncollected premium taxes to reimburse the Company for any tax on premiums on a Contract that may be imposed by various states and municipalities. See “Contingent Deferred Sales Charge,” “Account Administration Charge,” and “Premium Tax Charge.”
If an Extra Credit Rider is in effect, Contract Value will also be reduced by any Credit Enhancements that have not yet vested. See the discussion of vesting of Credit Enhancements under “Extra Credit.”
The Company requires the signature of all Owners on any request for withdrawal. The Company requires a guarantee of all such signatures to effect the transfer or exchange of all of the Contract or any part of the Contract in excess of $25,000 for another investment. The signature guarantee must be provided by an eligible guarantor, such as a bank, broker, credit union, national securities exchange or savings association. Notarization is not an acceptable form of signature guarantee. The Company further requires that any request to transfer or exchange all or part of the Contract for another investment be made upon a transfer form provided by the Company which is available upon request.
A partial withdrawal or a withdrawal made to pay the fees of your investment adviser may be requested for a specified percentage or dollar amount of Contract Value. A request for a partial withdrawal (including systematic withdrawals) will result in a payment by the Company of the amount specified in the partial withdrawal request, less any applicable withdrawal or premium tax charge. Any withdrawal charge on partial withdrawals (including systematic withdrawals) from Purchase Payments that have been held in the Contract for less than seven years will be deducted from the requested payment amount as will any premium tax charge. Alternatively, you may request that any withdrawal and/or premium tax charge be deducted from your remaining Contract Value, provided there is sufficient Contract Value available. Upon payment, your Contract Value will be reduced by an amount equal to the payment, or if you requested that any charges be deducted from your remaining Contract Value, your Contract Value also will be reduced by the amount of any such withdrawal charge or any premium tax charge in addition to the payment amount. See “Premium Tax Charge.” Contract Value will also be reduced by a percentage of any Credit Enhancements that have not yet vested. See “Extra Credit.” No partial withdrawal will be processed which would result in a withdrawal of Contract Value from the Loan Account.
29
If a partial withdrawal (other than a systematic withdrawal) causes your Contract Value to be less than $2,000 immediately after the Withdrawal and no Purchase Payments have been made in the prior three years, we may terminate the Contract and send you the Withdrawal proceeds. No partial withdrawal will be processed which would result in the withdrawal of Contract Value from the Loan Account.
The Company will deduct the amount of a partial withdrawal from the Contract Value in the Subaccounts and the Fixed Account, according to the Owner’s instructions to the Company. If you do not specify the allocation, the Company will deduct the withdrawal in the same proportion that Contract Value is allocated among the Subaccounts and the Fixed Account.
A full or partial withdrawal, including a systematic withdrawal, may result in receipt of taxable income to the Owner and, if made prior to the Owner attaining age 59½, may be subject to a 10% penalty tax. In the case of Contracts issued in connection with retirement plans that meet the requirements of Section 403(b) of the Internal Revenue Code, reference should be made to the terms of the particular Qualified Plan for any limitations or restrictions on withdrawals. If your Contract was issued pursuant to a 403(b) plan, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders or transfers you request comply with applicable tax requirements and to decline requests that are not in compliance. For more information, see “Restrictions on Withdrawals from Qualified Plans.” The tax consequences of a withdrawal under the Contract should be carefully considered. See “Federal Tax Matters.”
Withdrawals to Pay Advisory Fees — The deduction of advisory fees from your Contract Value is treated as a withdrawal under the Contract. No surrender charges will be assessed on a withdrawal to pay advisory fees and the deduction of advisory fees will not count toward the annual free withdrawal amount. Deductions from your Contract Value to pay advisory fees will reduce death benefits and any guaranteed benefit values, perhaps significantly. See “Benefits Under the Contract – Optional Riders.”
Withdrawals to pay advisory fees may still be treated as withdrawals for tax purposes by the Company and/or the IRS. For Non-Qualified Contracts, all or a portion of the charges deducted from your Contract Value to pay advisory fees to a financial intermediary may be subject to federal and state income taxes and a 10% federal penalty tax. A tax-free partial exchange may become taxable if an advisory fee is paid from your Contract Value within 180 days of the partial exchange. Consult your tax adviser for advice concerning tax-free partial exchanges and the impact of deducting advisory fees from your Contract Value.
Systematic Withdrawals — For no additional charge, the Company currently offers a feature under which you may select systematic withdrawals. Under this feature, an Owner may elect to receive systematic withdrawals while the Owner is living and before the Annuity Start Date by sending a properly completed Scheduled Systematic Withdrawal form to the Company at its Administrative Office. This option may be elected at any time. An Owner may designate the systematic withdrawal amount as a percentage of Contract Value allocated to the Subaccounts and/or the Fixed Account, as a fixed period, as level payments, as a specified dollar amount, as all earnings in the Contract, or based upon the life expectancy of the Owner or the Owner and a beneficiary. An Owner also may designate the desired frequency of the systematic withdrawals, which may be monthly, quarterly, semiannual or annual. The Owner may stop or modify systematic withdrawals upon proper written request received by the Company at its Administrative Office at least 30 days in advance of the requested date of termination or modification. A proper request must include the written consent of any effective assignee or irrevocable beneficiary, if applicable.
Each systematic withdrawal must be at least $100. Upon payment, your Contract Value will be reduced by an amount equal to the payment proceeds plus premium tax. Contract Value will also be reduced by a percentage of any Credit Enhancements that have not yet vested. See “Extra Credit.”
If an Owner is enrolled in the Dollar Cost Averaging or Asset Reallocation Options, the Owner may not elect to receive systematic withdrawals from any Subaccount that is part of the Dollar Cost Averaging or Asset Reallocation Options.
In no event will the amount of a systematic withdrawal exceed the Contract Value less any applicable withdrawal charges, any uncollected premium taxes, any pro rata account administration charge, and any reduction for Credit Enhancements that have not yet vested (the “Withdrawal Value”). The Contract will automatically terminate if a systematic withdrawal causes the Contract’s Withdrawal Value to equal zero.
The Company will effect each systematic withdrawal as of the end of the Valuation Period during which the withdrawal is scheduled. The deduction caused by the systematic withdrawal, including any applicable withdrawal charge, will be allocated to your Contract Value in the Subaccounts and the Fixed Account, as you have directed. If you do not specify the allocation, the Company will deduct the systematic withdrawal in the same proportion that Contract Value is allocated among the Subaccounts and the Fixed Account.
30
The Company may, at any time, discontinue, modify, suspend or charge a fee for systematic withdrawals. You should consider carefully the tax consequences of a systematic withdrawal, including the 10% penalty tax which may be imposed on withdrawals made prior to the Owner attaining age 59½. See “Federal Tax Matters.”
Free-Look Right — You may return a Contract within the Free-Look Period, which is generally a ten-day period beginning when you receive the Contract (60 days from the date of receipt if you are purchasing the Contact to replace another life insurance or annuity contract or with the proceeds of another such contract). Purchase Payments received during the Free-Look period will be allocated according to your instructions contained in the application or more recent instructions, if any. If you return your Contract during the Free-Look Period, the Company will then deem void the returned Contract and will refund to you , as of the Valuation Date on which the Company receives your Contract, Purchase Payments allocated to the Fixed Account (not including any Credit Enhancements if the Extra Credit Rider was in effect). The Company will also refund any Contract Value allocated to the Subaccounts based upon the value of Accumulation Units next determined after we receive your Contract, plus any charges deducted from such Contract Value, less any such Contract Value attributable to Credit Enhancements. Because the Company will deduct the current value of any Credit Enhancements from the amount of Contract Value refunded to you, the Company will bear the investment risk associated with Credit Enhancements during the Free-Look Period.
Death Benefit — You should consider the following provisions carefully when choosing the Designated Beneficiary, Annuitant, any Joint Annuitant, and any Joint Owner as well as before changing any of these parties. Naming different persons as Owner(s), Annuitant(s) and Designated Beneficiary(ies) can have important impacts on whether the death benefit is paid, and on who would receive it.
If an Owner dies prior to the Annuity Start Date while this Contract is in force, the Company will calculate the death benefit proceeds payable to the Designated Beneficiary as of the Valuation Date the Company receives due proof of the Owner’s death and instructions regarding payment to the Designated Beneficiary. If there are Joint Owners, the death benefit proceeds will be calculated upon receipt of due proof of death of either Owner and instructions regarding payment.
If the surviving spouse of the deceased Owner is the sole Designated Beneficiary, such spouse may elect to continue the Contract in force, subject to certain limitations. See “Distribution Requirements.” If any Owner is not a natural person, the death benefit proceeds will be calculated as of the date the Company receives due proof of death of the Annuitant prior to the Annuity Start Date and instructions regarding payment. If the death of an Owner occurs on or after the Annuity Start Date, any applicable death benefit will terminate at the Annuity Start Date without value. See “Annuity Options.”
The death benefit proceeds will be the death benefit reduced by any outstanding Contract Debt, any pro rata account administration charge and any uncollected premium tax. If the age of each Owner (or Annuitant, if the Owner is not a natural person) was 80 or younger on the Contract Date and an Owner dies prior to the Annuity Start Date while this Contract is in force, the amount of the death benefit will be the greater of:
1.
The sum of all Purchase Payments and, if applicable, Credit Enhancements applied to the Fixed Account, less any reductions caused by previous withdrawals, including withdrawal charges, or
2.
The Contract Value on the Valuation Date due proof of death and instructions regarding payment are received by the Company (less any Credit Enhancements applied to the Subaccounts during the 12 months prior to the date of the Owner’s death).
If any Owner (or Annuitant, if the Owner is not a natural person) was age 81 or older on the Contract Date, the death benefit will be as set forth in item 2 above.
If you purchased one of the optional riders that provides an enhanced death benefit, your death benefit will be determined in accordance with the terms of the rider. See the discussion of the Annual Stepped Up Death Benefit Rider. Your death benefit proceeds under the rider will be the death benefit reduced by any outstanding Contract Debt, any pro rata account administration charge and any uncollected premium tax and, if the proceeds are based upon Contract Value, any Credit Enhancements applied during the 12 months preceding the Owner’s date of death. No Credit Enhancements will be recaptured from the Death Benefit that are attributable to amounts allocated to the Fixed Account.
The death benefit proceeds will be paid to the Designated Beneficiary in a single sum or under one of the Annuity Options, as elected by the Designated Beneficiary. However, if the Participant has completed a restricted beneficiary designation form, the death benefit proceeds will be paid to the Designated Beneficiary in the manner
31
specified on the form. If the Company does not receive at its Administrative Office within six months of the date of the Owner’s death instructions regarding the death benefit payment, the death benefit will be as set forth in item 2 above. If the Designated Beneficiary is to receive annuity payments under an Annuity Option, there may be limits under applicable law on the amount and duration of payments that the Beneficiary may receive, and requirements respecting timing of payments. Under a Qualified Contract, most non-spouse Designated Beneficiaries will be required to receive all proceeds within ten years. A tax adviser should be consulted in considering Annuity Options. See “Federal Tax Matters” and “Distribution Requirements” for a discussion of the tax consequences in the event of death.
Every state has unclaimed property laws which generally declare annuity contracts to be abandoned after a period of inactivity of 3 to 5 years from the Contract’s Annuity Start Date or date the death benefit is due and payable. For example, if the payment of a death benefit has been triggered, but the Designated Beneficiary does not come forward to claim the death benefit in a timely manner, the death benefit will be paid to the abandoned property division or unclaimed property office of the state in which the Designated Beneficiary or the Owner last resided, as shown on our books and records, or to our state of domicile. This “escheatment” is revocable, however, and the state is obligated to pay the death benefit (without interest) if your Designated Beneficiary steps forward to claim the death benefit with the proper documentation. To prevent such escheatment, it is important that you update your Designated Beneficiary designations, including addresses, if and as they change. Such updates should be communicated in writing or other approved means at our Administrative Office.
Example of the Standard Death Benefit. Assume:
(i)
The initial Purchase Payment is $100,000
(ii)
The Owner takes one withdrawal of $10,000 over the life of the Contract
(iii)
At the time of the Owner’s death, the Contract Value is $89,000
(iv)
There is no outstanding Contract Debt and no unvested Credit Enhancements at the time of the Owner’s death
If the Owner was 80 years old or younger on the Contract Date, the standard death benefit is the greater of the Contract Value or total Purchase Payments less any withdrawals (including withdrawal charges). The Contract Value is $89,000, and the amount of total Purchase Payments less withdrawals and withdrawal charges is $90,000. Thus, the death benefit is $90,000.
If the Owner was 81 years or older on the Contract Date, the standard death benefit is the Contract Value, which is $89,000.
Example of the Impact of Advisory Fee Withdrawals on Contract Value and the Standard Death Benefit over Time. Assume:
(i)
The initial Purchase Payment is $100,000 and no additional Purchase Payments are added to the Contract.
(ii)
The Contract Value grows at an annual rate of 3%.
(iii)
An advisory fee withdrawal of $1,000 is taken each Contract Year at the end of the Contract Year.
Beginning of
Contract Year
Contract Value
Prior to Advisory
Fee Withdrawal
Advisory Fee
Withdrawal
Contract Value
After Advisory Fee
Withdrawal
Death Benefit
After Advisory Fee
Withdrawal
1
$100,000.00
$1,000.00
$102,000.00
$102,000.00
2
$102,000.00
$1,000.00
$104,060.00
$104,060.00
3
$104,060.00
$1,000.00
$106,181.80
$106,181.80
4
$106,181.80
$1,000.00
$108,367.25
$108,367.25
5
$108,367.25
$1,000.00
$110,618.27
$110,618.27
6
$110,618.27
$1,000.00
$112,936.82
$112,936.82
7
$112,936.82
$1,000.00
$115,324.92
$115,324.92
8
$115,324.92
$1,000.00
$117,784.67
$117,784.67
9
$117,784.67
$1,000.00
$120,318.21
$120,318.21
10
$120,318.21
$1,000.00
$122,927.76
$122,927.76
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Beginning of
Contract Year
Contract Value
Prior to Advisory
Fee Withdrawal
Advisory Fee
Withdrawal
Contract Value
After Advisory Fee
Withdrawal
Death Benefit
After Advisory Fee
Withdrawal
11
$122,927.76
$1,000.00
$125,615.59
$125,615.59
12
$125,615.59
$1,000.00
$128,384.06
$128,384.06
13
$128,384.06
$1,000.00
$131,235.58
$131,235.58
14
$131,235.58
$1,000.00
$134,172.65
$134,172.65
15
$134,172.65
$1,000.00
$137,197.83
$137,197.83
16
$137,197.83
$1,000.00
$140,313.76
$140,313.76
17
$140,313.76
$1,000.00
$143,523.18
$143,523.18
18
$143,523.18
$1,000.00
$146,828.87
$146,828.87
19
$146,828.87
$1,000.00
$150,233.74
$150,233.74
20
$150,233.74
$1,000.00
$153,740.75
$153,740.75
21
$153,740.75
$1,000.00
$157,352.97
$157,352.97
As the table above demonstrates, withdrawals to pay advisory fees taken over time will decrease the Contract Value. If the death benefit is equal to the Contract Value, such death benefit will also decrease as a result of withdrawals to pay advisory fees.
Distribution Requirements — The Contract provides that upon your death, a surviving spouse may have certain continuation rights that he or she may elect to exercise for the Contract’s death benefit and any joint-life coverage under an optional living benefit. All Contract provisions relating to spousal continuation are available only to a person who meets the definition of "spouse" under federal law. The U.S. Supreme Court has held that same-sex marriages must be permitted under state law and that marriages recognized under state law will be recognized for federal law purposes. Domestic partnerships and civil unions that are not recognized as legal marriages under state law, however, will not be treated as marriages under federal law. Consult a tax adviser for more information on this subject.
For Contracts issued in connection with a Non-Qualified Contract, if the surviving spouse of the deceased Owner is the sole Designated Beneficiary, such spouse may elect to continue this Contract in force until the earliest of the spouse’s death or the Annuity Start Date or receive the death benefit proceeds. If the surviving spouse elects to continue the Contract, no death benefit will be paid and the Contract Value will not be adjusted to reflect the amount of any death benefit; provided, however, the Designated Beneficiary will be entitled to receive the death benefit proceeds in accordance with the terms of the Contract upon the death of the surviving spouse.
For any Designated Beneficiary of a Non-Qualified Contract other than a surviving spouse, only those options may be chosen that provide for complete distribution of such Owner’s interest in the Contract within five years of the death of the Owner. If the Designated Beneficiary is a natural person, that person alternatively can elect to begin receiving annuity payments within one year of the Owner’s death over a period not extending beyond his or her life or life expectancy. If the Owner of the Contract is not a natural person, these distribution rules are applicable upon the death of or a change in the primary Annuitant.
For Contracts issued in connection with a Qualified Plan, the terms of the particular Qualified Plan and the Internal Revenue Code should be reviewed with respect to distributions following the death of the Owner or Annuitant. Because the rules applicable to Qualified Plans are extremely complex, a competent tax adviser should be consulted.
Please note that any death benefit we may pay in excess of the Contract Value is subject to our financial strength and claims-paying ability.
Death of the Annuitant — If the Annuitant dies prior to the Annuity Start Date, and the Owner is a natural person and is not the Annuitant, no death benefit proceeds will be payable under the Contract. The Owner may name a new Annuitant within 30 days of the Annuitant’s death. If a new Annuitant is not named, the Company will designate the Owner as Annuitant. On the death of the Annuitant after the Annuity Start Date, any guaranteed payments remaining unpaid will continue to be paid to the Designated Beneficiary pursuant to the Annuity Option in force at the date of death.
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Benefits Under the Contract
The following table summarizes information about the optional and standard benefits under the Contract that are currently available or have previously been offered. Please note that this table does not fully describe the terms and conditions of each benefit. You should refer to the applicable sections of this Prospectus for additional information.
Standard Benefits
Name of
Benefit
Purpose
Maximum
Fee
Brief Description of Restrictions/Limitations
Standard
Death Benefit
– Contract
Issue Age 80
or Younger
Provides a death benefit equal to
the greater of all Purchase
Payments (less any withdrawals,
including withdrawal charges), or
the Contract Value.
There is no
charge for this
option.
•The death benefit will be reduced by any outstanding Contract
Debt, any pro rata account administration charge and any
uncollected premium tax.
•Purchase Payments do not include any Credit Enhancements
and/or Bonus Credits.
•The Contract Value will be reduced by any Credit Enhancements
applied during the 12 months prior to the date of the Owner’s
death.
Standard
Death Benefit
– Contract
Issue Age 81
and Older
Provides a death benefit equal to
the Contract Value.
There is no
charge for this
option.
•The death benefit will be reduced by any outstanding Contract
Debt, any pro rata account administration charge and any
uncollected premium tax.
•The Contract Value will be reduced by any Credit Enhancements
applied during the 12 months prior to the date of the Owner’s
death.
Systematic
Withdrawals
Allows you to set periodic
automatic payments from your
contract value.
There is no
charge for this
option.
•Each payment must be at least $100 (unless we consent
otherwise).
•Withdrawals may be subject to income tax and penalties.
Dollar Cost
Averaging
Option
Allows the systematic transfer of
a specified dollar amount or
percentage of Contract Value
among Subaccounts and the
Fixed Account.
There is no
charge for this
option.
•The minimum amount that may be transferred to any one
Subaccount is $25.00.
•The Company may discontinue, modify, or suspend Dollar Cost
Averaging at any time.
•Transfers can be made for a fixed period of time, until the total
amount elected has been transferred, or until the Contract Value in
the Subaccount from which transfers are made has been depleted.
•After termination of Dollar Cost Averaging for any reason, before
reinstating Dollar Cost Averaging, you must wait at least one month
if transfers were monthly, at least one quarter if transfers were
quarterly, at least six months if transfers were semiannual, and at
least one year if transfers were annual.
Asset
Reallocation
Option
Allows you to automatically
transfer Contract Value on a
monthly, quarterly, semiannual or
annual basis to maintain a
particular percentage allocation
among the Subaccounts.
There is no
charge for this
option.
•The Company may discontinue, modify, or suspend the Asset
Reallocation Option at any time.
34
Optional Benefits Currently Available
Name of
Benefit
Purpose
Maximum
Fee (as a
percentage
of Contract
Value)
Brief Description of Restrictions/Limitations
Annual
Stepped Up
Death Benefit
Provides an enhanced death
benefit equal the greatest of (1)
Purchase Payments (less any
withdrawals, including withdrawal
charges), (2) Contract Value, or
(3) the Stepped Up Death
Benefit.
0.25%
•We will recapture any Credit Enhancements, if applicable, during
the 12 months preceding the Owner’s date of death.
•The death benefit is no longer eligible to “step up” on any Contract
anniversary following your 81st birthday.
•If proof of death and instructions regarding payment are not
received by the Company within twelve months of the Owner’s date
of death, the death benefit will equal the Contract Value on the
Valuation Date such proof and instructions are received.
•Available if the Owner is 79 or younger on the Contract Date.
•Available at Contract issue only.
•The benefit will terminate at the Annuity Start Date.
•The death benefit will be reduced by any outstanding Contract
Debt, pro rata account administration charge, and premium tax.
•Withdrawals (including withdrawals to pay advisory fees) will
reduce the benefit proportionately. This means withdrawals could
significantly reduce the benefit by substantially more than the
actual amount of the withdrawal, or even terminate the benefit.
Alternate
Withdrawal
Charge
(0-Year)
Makes available a shorter
withdrawal charge schedule in
lieu of the Contract’s 7-year
withdrawal charge schedule.
0.70%
•We may recapture any Credit Enhancement in the event of a full or
partial withdrawal.
•Available at Contract issue only.
•Depending on the Annuity Option chosen, a rider fee may be
imposed for the life of the Contract.
Alternate
Withdrawal
Charge
(4-Year)1
Makes available a shorter
withdrawal charge schedule in
lieu of the Contract’s 7-year
withdrawal charge schedule.
0.60%
•We may recapture any Credit Enhancement in the event of a full or
partial withdrawal.
•Available at Contract issue only.
•This rider may provide a benefit only if a withdrawal is taken in the
five to seven Contract years after the applicable Purchase Payment
date because for the first four years after the Purchase Payment
date, the withdrawal charges are the same as they would be under
the 7-year schedule.
4% Extra
Credit
Provides a Credit Enhancement
equal to 4% of Purchase
Payments, which will be added to
the Contract Value for each
Purchase Payment made in the
first Contract Year.
0.55%
•Credit Enhancements are only applied to Purchase Payments
received in the first Contract Year. If Purchase Payments are made
in subsequent Contract Years, the charge for this benefit will
increase proportionately in relation to those Purchase Payments
and no additional Credit Enhancement will be applied.
•You may not select an Annuity Start Date prior to seven years from
the effective date of the rider.
•Credit Enhancements are not fully vested until the seventh Contract
anniversary. Until that date, all or a portion of the Credit
Enhancement(s) will be forfeited under certain circumstances.
•Available if the Owner is age 80 or younger on the Contract Date.
•Available at Contract issue only.
35
Optional Benefits (No Longer Available For Election)
Name of
Benefit
Purpose
Maximum
Fee (as a
percentage
of Contract
Value)
Brief Description of Restrictions/Limitations
Automatic
Bonus Credit
(Available May
1, 2005
through
December 31,
2007)
Provided a Bonus Credit, which
was automatically added to
Contract Value, equal to 2% of
each Purchase Payment made in
the first Contract Year.
There was no
charge for this
benefit.
•Bonus Credits are only applied to Purchase Payments received in
the first Contract Year.
•Bonus Credit is subject to any applicable withdrawal charge.
•Available for Contracts purchased in connection with the transfer or
exchange of a variable annuity contract issued by another
insurance company, provided the initial Purchase Payment was
received no later than February 28, 2008.
•Not available with the 0-Year Alternate Withdrawal Charge Rider.
•If you also elected a 4-Year Alternate Withdrawal Charge Rider,
your Bonus Credit was equal to 1%, not 2%, of each Purchase
Payment received in the first Contract Year.
•Available if any Owner was age 80 or younger on the Contract
Date.
Guaranteed
Minimum
Withdrawal
Benefit
Permits you to withdraw up to a
specified amount each Contract
Year, regardless of the
performance of your Contract
Value, until the Remaining Benefit
Amount is reduced to $0. You
may periodically increase the
Benefit Amount through resets.
Current: 0.55%
•You are only eligible to reset the remaining Benefit Amount every
five years.
•The rider charge may be increased in the event that you elect a
reset.
•While rider is in effect, we reserve right to restrict subsequent
Purchase Payments.
•Certain withdrawals could significantly reduce or even terminate
the benefits.
•Available if each Owner and Annuitant is age 85 or younger when
the rider is purchased.
•If a withdrawal (including a withdrawal to pay advisory fees)
exceeds the Annual Withdrawal Amount, the withdrawal will reduce
the benefit proportionately, but if the withdrawal does not exceed
the Annual Withdrawal Amount, the withdrawal will reduce the
benefit by the dollar amount of the withdrawal. A proportionate
withdrawal could significantly reduce the benefit by substantially
more than the actual amount of the withdrawal.
Max: 1.10%1
Guaranteed
Minimum
Income Benefit
(3%)
Provides a minimum amount
(“Minimum Income Benefit”),
based on a 3% crediting rate, for
the purchase of a fixed Annuity
only.
0.25%
•You may only apply the Minimum Income Benefit to purchase
certain fixed annuity options.
•You may not exercise this benefit or convert it to an income stream
until your 10th Contract anniversary.
•Certain withdrawals could significantly reduce or even terminate
the benefits.
•Available if the Owner is age 79 or younger on the Contract Date.
•Withdrawals (including withdrawals to pay advisory fees) will
reduce the benefit proportionately. This means withdrawals could
significantly reduce the benefit by substantially more than the
actual amount of the withdrawal, or even terminate the benefit.
Guaranteed
Minimum
Income Benefit
(5%)
Provides a minimum amount
(“Minimum Income Benefit”),
based on a 5% crediting rate, for
the purchase of a fixed Annuity
only.
0.40%
•You may only apply the Minimum Income Benefit to purchase
certain fixed annuity options.
•You may not exercise this benefit or convert it to an income stream
until your 10th Contract anniversary.
•If you elected the benefit at 5%, the Company credits a maximum
rate of 4% for amounts allocated to the Invesco V.I. Government
Money Market, the Fixed Account, and the Loan Account.
•Certain withdrawals could significantly reduce or even terminate
the benefits.
•Available if the Owner is age 79 or younger on the Contract Date.
36
Optional Benefits (No Longer Available For Election)
Name of
Benefit
Purpose
Maximum
Fee (as a
percentage
of Contract
Value)
Brief Description of Restrictions/Limitations
Extra Credit
Rider (3%)
Provides a Credit Enhancement
equal to 3% of Purchase
Payments, which will be added to
the Contract Value for each
Purchase Payment made in the
first Contract Year.
0.40%
•Credit Enhancements are only applied to Purchase Payments
received in the first Contract Year.
•You may not select an Annuity Start Date prior to seven years from
the effective date of the rider.
•Credit Enhancements are subject to recapture under certain
circumstances.
•Available if the Owner is age 80 or younger on the Contract Date.
Extra Credit
Rider (5%)
Provides a Credit Enhancement
equal to 5% of Purchase
Payments, which will be added to
the Contract Value for each
Purchase Payment made in the
first Contract Year.
0.70%
•Credit Enhancements are only applied to Purchase Payments
received in the first Contract Year.
•You may not select an Annuity Start Date prior to seven years from
the effective date of the rider.
•Credit Enhancements are subject to recapture under certain
circumstances.
•Available if the Owner is age 80 or younger on the Contract Date.
1
The Company may increase the rider charge for the Guaranteed Minimum Withdrawal Benefit Rider only if you elect a reset; the Company
guarantees the rider charge upon reset will not exceed 1.10% on an annual basis. Please see the discussion under “Guaranteed Minimum
Withdrawal Benefit” In Appendix B – Riders No Longer Available – Available for Purchase Only Prior to February 1, 2010.
Loans — If you own a Contract issued in connection with a retirement plan that is qualified under Section 403(b) of the Internal Revenue Code, you may be able to borrow money under your Contract using the Contract Value as the only security for the loan. You may obtain a loan by submitting a proper written request to the Company. A loan must be taken and repaid prior to the Annuity Start Date. The minimum loan that may be taken is $1,000. The maximum amount of all loans on all contracts combined is generally equal to the lesser of: (1) $50,000 reduced by the excess of: (a) the highest outstanding loan balance within the preceding 12-month period ending on the day before the date the loan is made; over (b) the outstanding loan balance on the date the loan is made; or (2) 50% of the Contract Values or $10,000, whichever is greater (the $10,000 limit is not available for Contracts issued under a 403(b) Plan subject to the Employee Retirement Income Security Act of 1974 (ERISA)). For loans issued under plans that are subject to ERISA, the maximum amount of all loans is the lesser of: (1) $50,000 reduced by the excess of: (a) the highest outstanding loan balance within the preceding 12-month period ending on the day before the date the loan is made; over (b) the outstanding loan balance on the date the loan is made; or (2) 50% of your Contract Value. In any case, the maximum loan balance outstanding at any time may not exceed 80% of Contract Value, and the Company reserves the right to limit to one the number of loans outstanding at any time. The Internal Revenue Code requires aggregation of all loans made to an individual employee under a single employer plan. However, since the Company has no information concerning outstanding loans with other providers, we are only be able to use information available under annuity contracts issued by us, and you will be responsible for determining your loan limits considering loans from other providers. If your Contract was issued pursuant to a 403(b) plan, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that loans you request comply with applicable tax requirements and to decline requests that are not in compliance. Reference should be made to the terms of your particular Qualified Plan for any additional loan restrictions.
Upon receipt by the Company of a written loan application and agreement and subject to the Company’s approval (which approval or disapproval may be postponed for up to six months after receipt of the loan application), Contract Value in an amount equal to the loan amount is withdrawn from the Subaccounts and/or the Fixed Account proportionately as it is currently invested in the Subaccounts and/or the Fixed Account and transferred into an account called the “Loan Account,” which is an account within the Fixed Account. Amounts allocated to the Loan Account earn 3.0% on an annual basis.
Interest will be charged for the loan and will accrue on the loan balance from the effective date of any loan. The Company will charge interest on the loan at an annual effective rate of 7.4%. The net cost of a loan is the interest rate charged by the Company less the interest rate credited. We are not responsible for determining whether this interest rate is “reasonable” as required by ERISA for loans under ERISA covered 403(b) plans.
Loans must be repaid within five years, unless the loan is used to acquire your principal residence, in which case the loan must be repaid within 30 years. In either event, your loan must be repaid prior to the Annuity Start Date. You must make loan repayments on at least a quarterly basis, and you may prepay your loan at any time. There is no required minimum payment. You must label each loan payment as such. If not labeled as a loan payment, amounts
37
received by the Company will be treated as Purchase Payments. Upon receipt of a loan payment, the Company will transfer Contract Value from the Loan Account to the Fixed Account and/or the Subaccounts according to your current instructions with respect to Purchase Payments in an amount equal to the amount by which the payment reduces the amount of the loan outstanding.
If you do not make any required loan payment by the end of the calendar quarter following the calendar quarter in which the missed payment was due, the TOTAL OUTSTANDING LOAN BALANCE will be deemed to be in default. The total outstanding loan balance, which includes accrued interest, will be reported to the Internal Revenue Service (“IRS”) on form 1099-R for the year in which the default occurred.This deemed distribution may be subject to a 10% penalty tax, which is imposed upon distributions prior to the Owner attaining age 59½. Once a loan has defaulted, regularly scheduled loan payments will not be accepted by the Company. No new loans will be allowed while a loan is in default. Interest will continue to accrue on a loan in default. Contract Value equal to the amount of the accrued interest may be transferred to the Loan Account. If a loan continues to be in default, the total outstanding balance may be deducted from Contract Value on or after the Contract Owner attains age 59½. The Contract will terminate automatically if the outstanding loan balance of a loan in default equals or exceeds the Withdrawal Value. The Contract Value will be used to repay the loan and any applicable withdrawal charges. Because of the adverse tax consequences associated with defaulting on a loan, you should carefully consider your ability to repay the loan and should consult with a tax adviser before requesting a loan.
While the amount to secure the loan is held in the Loan Account, you forego the investment experience of the Subaccounts and the Current Rate of interest on the Fixed Account. The Contract Value at surrender and the death proceeds payable will be reduced by the amount of any outstanding Contract Debt plus accrued interest. Loans, therefore, can affect the Contract Value and benefits linked to the Contract Value, whether or not the loan is repaid. Outstanding Contract Debt will reduce the amount of proceeds paid upon full withdrawal, upon payment of the death benefit, and upon annuitization. In addition, no partial withdrawal will be processed which would result in the withdrawal of Contract Value from the Loan Account. If a Guaranteed Growth Death Benefit Rider or Guaranteed Minimum Income Benefit Rider is in effect, amounts allocated to the Loan Account will earn the minimum rate of interest guaranteed under the Fixed Account for the purpose of calculating the benefit under any such Rider. Until the loan is repaid, the Company reserves the right to restrict any transfer of the Contract which would otherwise qualify as a transfer permitted in the Internal Revenue Code.
In the event that you elect to exchange your Contract for a contract of another company, you will need to either pay off your loan prior to the exchange or incur tax consequences in that you will be deemed to have received a taxable distribution in the amount of the outstanding loan balance. You should consult with your tax advisor on the effect of a loan.
Optional Riders — Upon your application for the Contract, you may select one or more of the following riders:
•
Annual Stepped Up Death Benefit;
•
Extra Credit at 4%; or
•
0-Year or 4-Year Alternate Withdrawal Charge.
The Company makes each rider available only at issue. You cannot change or cancel the rider(s) that you select after they are issued. See a detailed description of the riders below.
The deduction of advisory fees from your Contract Value to pay a financial intermediary is treated as a withdrawal under the Contract. Such deductions will reduce death benefits and any guaranteed benefit values, perhaps significantly. Consult your financial intermediary as to the impact of deducting advisory fees from your Contract Value prior to making an election.
For information on riders that are no longer available for purchase, please see Appendix B – Riders No Longer Available – Available for Purchase Only Prior to February 1, 2010 and Appendix C – Bonus Credit Rider.
Please note that any amount that we may pay or make available under any optional rider that is in excess of Contract Value is subject to our financial strength and claims-paying ability.
Annual Stepped Up Death Benefit — For an additional charge, as reflected in the Fee Table and the table of benefits above, this rider makes available an enhanced death benefit upon the death of the Owner or any Joint Owner prior to the Annuity Start Date. The death benefit proceeds will be the death benefit reduced by any outstanding Contract Debt, any pro rata account administration charge, and any uncollected premium tax. If the Extra Credit Rider was in effect, the death benefit (except the death benefit calculated under number 1 below) also will be reduced by any Credit Enhancements applied during the 12 months preceding the Owner’s date of death.
38
However, the Company will not reduce death benefit proceeds by the amount of any Credit Enhancement applied to the Fixed Account. If an Owner dies prior to the Annuity Start Date, the amount of the death benefit under this rider will be the greatest of:
1.
The sum of all Purchase Payments and, if applicable, Credit Enhancements applied to the Fixed Account, less any withdrawals (including systematic withdrawals) and withdrawal charges;
2.
The Contract Value on the Valuation Date due proof of death and instructions regarding payment for each Designated Beneficiary are received by the Company; or
3.
The Stepped Up Death Benefit.
The Stepped Up Death Benefit is the largest result determined for the following calculation as of the date of receipt of instructions regarding payment of the death benefit:
•
The Contract Value on each Contract anniversary that occurs prior to the oldest Owner attaining age 81; plus
•
Any Purchase Payments received by the Company since the applicable Contract anniversary; less
•
An adjustment for any withdrawals (including systematic withdrawals and withdrawals to pay investment advisory fees) and withdrawal charges made since the applicable anniversary. In the event of a withdrawal (including systematic withdrawals and withdrawals to pay investment advisory fees), the Stepped Up Death Benefit is reduced as of the date of the withdrawal by a percentage found by dividing the withdrawal amount, including any applicable withdrawal charges, premium taxes and/or forfeited Credit Enhancements, by the Contract Value immediately prior to the withdrawal.
If an Owner dies prior to the Annuity Start Date, but due proof of death and instructions regarding payment are not received by the Company at its Administrative Office within six months of the date of the Owner’s death, the death benefit will be as set forth in number 2 above.
This rider is available only if the age of the Owner at the time the Contract is issued is 79 or younger. See the discussion under “Death Benefit.”
Example of the Annual Stepped Up Death Benefit. Assume:
(i)
The initial Purchase Payment is $50,000, and no additional Purchase Payments are added to the Contract.
(ii)
The Owner is 60 years old when the Contract is issued.
(iii)
The Owner takes no withdrawals between the date the Contract was issued and the date of the Owner’s death.
At the time the Contract is issued, the Stepped Up Death Benefit amount is the initial Purchase Payment or $50,000. Due to positive market performance, the Contract Value on the first Contract anniversary is $65,000. The Owner’s Stepped Up Death Benefit amount increases from $50,000 to $65,000. Due to negative market performance, the Contract Value has decreased to $49,000 on the second Contract anniversary. The Stepped Up Death Benefit amount remains at $65,000.
The Owner dies during the third Contract Year. At the time of the Owner’s death, the Contract Value is $55,000. The amount payable at death would be the greatest of (1) the sum of all Purchase Payments (not including any Credit Enhancements and/or Bonus Credits), less any withdrawals and withdrawal charges (in this case, $50,000); (2) the Contract Value on the Valuation Date due proof of death and instructions regarding payment for each Designated Beneficiary are received by the Company (in this case, $55,000); or (3) the Stepped Up Death Benefit (in this case, $65,000). Thus, $65,000 is the death benefit.
Example of a Reduction in the Stepped Up Death Benefit Amount as a Result of a Withdrawal. Assume:
(i)
The initial Purchase Payment is $50,000, and no additional Purchase Payments are added to the Contract.
(ii)
The Owner is 60 years old when the Contract is issued.
At the time the Contract is issued, the Stepped Up Death Benefit amount is the initial Purchase Payment or $50,000. Due to positive market performance, the Contract Value on the first Contract anniversary is $65,000. The Owner’s Stepped Up Death Benefit amount increases from $50,000 to $65,000. Due to negative market
39
performance, the Contract Value has decreased to $49,000 on the second Contract anniversary. The Stepped Up Death Benefit amount remains at $65,000.
The Owner takes a free withdrawal of $4,900 in the third Contract Year. The Contract Value prior to the withdrawal is $35,000. As a result of the withdrawal, the Stepped Up Death Benefit is reduced as follows:
Withdrawal amount / Contract Value prior to withdrawal
$4,900 / $35,000 = 0.14 or 14%
Stepped Up Death Benefit x 14%
$65,000 x 14% = $9,100
$65,000 - $9,100 = $55,900
The Stepped Up Death Benefit following the withdrawal is $55,900.
Example of a Reduction in the Stepped Up Death Benefit Amount as a Result of a Withdrawal to Pay Advisory Fees. Assume:
(i)
The initial Purchase Payment is $100,000, and no additional Purchase Payments are added to the Contract.
(ii)
The Stepped Up Death Benefit prior to the advisory fee withdrawal is $125,000.
The Owner makes a $1,000 withdrawal to pay advisory fees. The Stepped Up Death Benefit is reduced as follows:
Stepped Up Death Benefit Prior
to Advisory Fee Withdrawal
x [1 -
(Advisory Fee Withdrawal
/
Contract Value Prior to
Advisory Fee Withdrawal)]
 
 
 
 
 
$125,000 x [1 - ($1,000 / $100,000)]
$125,000 x [1 - .01] = $123,750
The $1,000 withdrawal causes the Stepped Up Death Benefit to decrease by $1,250.
Extra Credit — For an additional charge, as reflected in the Fee Table, this rider makes available a Credit Enhancement, which is an amount added to your Contract Value by the Company. You may purchase this rider only at issue. A Credit Enhancement of 4% of Purchase Payments, as elected in the application, will be added to Contract Value for each Purchase Payment made in the first Contract Year. Prior to February 1, 2010, a Credit Enhancement of 3% or 5% was also available for election. Any Credit Enhancement will be allocated among the Subaccounts in the same proportion as your Purchase Payment.
This rider is available only if the age of the Owner on the Contract Date is age 80 or younger at issue. If you elect this rider, you may not select an Annuity Start Date that is prior to seven years from the effective date of the rider.
Example of the Credit Enhancement Applied to Initial and Subsequent Purchase Payments. Assume:
(i)
The Owner purchased the Contract with the 4% Extra Credit Rider.
(ii)
The initial Purchase Payment is $100,000.
The amount of the Credit Enhancement added to the Contract Value would be $4,000 ($100,000 x 4%). Thus, the Contract Value at issue would be $104,000.
Six months later the Owner makes a Purchase Payment of $50,000. The additional Purchase Payment will increase the Contract Value by $52,000, the amount of the $50,000 Purchase Payment plus $2,000 ($50,000 x 4%).
In the event of a full or partial withdrawal, the Company will recapture all or part of any Credit Enhancement that has not yet vested. An amount equal to 1/7 of the Credit Enhancement will vest as of each Contract Date
40
anniversary and the Credit Enhancement will be fully vested at the end of seven years from that date. The amount to be forfeited in the event of a withdrawal is equal to a percentage of the Credit Enhancement that has not yet vested. The percentage is determined for each withdrawal as of the date of the withdrawal by dividing:
1.
The amount of the withdrawal, including any applicable withdrawal charges, premium taxes and/or forfeited Credit Enhancements, less the free withdrawal amount, by
2.
The Contract Value immediately prior to the withdrawal.
The Company will recapture Credit Enhancements on withdrawals only to the extent that total withdrawals in a Contract Year, including systematic withdrawals, exceed the free withdrawal amount. The Free Withdrawal amount is equal in the first Contract Year, to 10% of Purchase Payments, excluding any Credit Enhancements and/or Bonus Credits made during the year and, for any subsequent Contract Year, to 10% of Contract Value as of the first Valuation Date of that Contract Year. In addition, the Company does not recapture Credit Enhancements on withdrawals made to pay the fees of your registered investment adviser.
The Company may recapture Credit Enhancements in the event of a full or partial withdrawal as discussed above. In addition, if you exercise your right to return the Contract during the Free-Look period, your Contract Value will be reduced by the value of any Credit Enhancements applied. In the event of a withdrawal under the terms of the Waiver of Withdrawal Charge Rider, you will forfeit all or part of any Credit Enhancements applied during the 12 months preceding such a withdrawal. See “Waiver of Withdrawal Charge.” Death benefit proceeds may exclude all or part of any Credit Enhancements. See “Death Benefit” and the discussions of the death benefit riders.
Example of Credit Enhancement Vesting and Recapture upon Withdrawal in Excess of the Free Withdrawal Amount. Assume:
(i)
The Owner purchased the Contract with the 4% Extra Credit Rider.
(ii)
The initial Purchase Payment is $175,000.
The amount of the Credit Enhancement added to the Contract Value would be $7,000 ($175,000 x 4%). Thus, the Contract Value at issue would be $182,000.
An amount equal to 1/7 of the Credit Enhancement vests each Contract anniversary, and the Credit Enhancement is fully vested seven years from the date the Contract was issued. Assuming no withdrawals in excess of the free withdrawal amount are taken during the first seven Contract Years, the table below shows how the $7,000 Credit Enhancement vests each year:
Beginning of
Contract Year
Vested Credit
Enhancement
Unvested Credit
Enhancement
1
$0.00
$7,000
2
$1,000
$6,000
3
$2,000
$5,000
4
$3,000
$4,000
5
$4,000
$3,000
6
$5,000
$2,000
7
$6,000
$1,000
8
$7,000
$0.00
Due to negative market performance, in Contract Year 3, the Contract Value is $100,000, and the free withdrawal amount is $10,000. The Owner requests a withdrawal of $20,000, $10,000 more than the free withdrawal amount. The Credit Enhancement recapture is calculated as follows:
(Withdrawal Amount – Free Withdrawal Amount)
x
Unvested Credit
Enhancement
(Contract Value Prior to Withdrawal – Unvested Credit Enhancement)
($20,000 - $10,000)
x
$5,000
=
$526.32
($100,000 - $5,000)
41
The Company expects to make a profit from the charge for this rider and funds payment of the Credit Enhancements through the rider charge and the vesting schedule. The Extra Credit Rider may make sense for you only if you expect your average annual return (net of expenses of the Contract and the Underlying Funds) to exceed the applicable amount set forth in the table below, and you do not expect to make Purchase Payments to the Contract after the first Contract Year. The returns below represent the amount that must be earned each year during the seven-year period beginning on the Contract Date to break even on the rider. The rate of return assumes that all Purchase Payments are made during the first Contract Year when the Credit Enhancement is applied to Purchase Payments. If Purchase Payments are made in subsequent Contract Years, the applicable rider charge will increase in correlation to Purchase Payments and no offsetting Credit Enhancement will be available. As a result, the rate of return required to break even would be higher.
If your actual returns are greater than the amounts set forth below and you make no Purchase Payments after the first Contract Year, you will profit from the purchase of the rider. If your actual returns are less or if you make additional Purchase Payments after the first Contract Year, you will be worse off than if you had not purchased the rider. Please note that the returns below are net of Contract and Underlying Fund expenses so that you would need to earn the amount in the table plus the amount of applicable expenses to break even on the rider.
Interest Rate
Rate of Return (net of expenses)
3%*
-5.00%
4%
-1.50%
5%*
0.80%
*
Effective February 1, 2010, the 3% and 5% Credit
Enhancements are no longer available for election with the
Extra Credit Rider.
The Internal Revenue Code generally requires that interests in a Qualified Contract be nonforfeitable, and it is unclear whether the Credit Enhancement feature is consistent with those requirements. Consult a tax advisor before purchasing this rider as part of a Qualified Contract.
Prior to May 1, 2010, on a non-discriminatory basis the Company paid the additional Credit Enhancement in connection with a Contract purchased by customers of such broker-dealers who exchanged their current contract for this Contract and paid a withdrawal charge on the exchange. When such a customer purchased a Credit Enhancement of 5%, the Company added an additional Credit Enhancement to the customer’s initial Purchase Payment. The Company determined the amount of any additional Credit Enhancement by subtracting the 5% Credit Enhancement from the withdrawal charge amount assessed on the customer’s exchanged annuity contract. The Company required that it be notified when a purchase was made that qualified under this provision. There was no charge for this additional Credit Enhancement above the charge for the Extra Credit Rider at 5%. Any additional Credit Enhancement amount was subject to recapture in the event that the Owner exercised his or her right to return the Contract during the Free-Look period and was subject to a withdrawal charge.
Alternate Withdrawal Charge  — For an additional charge, as reflected in the Fee Table and the table of benefits above these riders make available an alternative withdrawal charge schedule. You may select one of the following schedules at the time of purchase of one of the riders, which are available only at issue. If you purchase one of these riders, the withdrawal charge schedule below will apply in lieu of the 7-year withdrawal charge schedule described under “Contingent Deferred Sales Charge.”
0-Year Schedule
4-Year Schedule
Purchase Payment Age (in years)
Withdrawal Charge
Purchase Payment Age (in years)
Withdrawal Charge
0 and over
0%
1
7%
 
 
2
7%
 
 
3
6%
 
 
4
5%
 
 
5 and over
0%
If you purchase the 4-Year Alternate Withdrawal Charge Rider and you have also purchased the Extra Credit Rider, you may forfeit all or part of any Credit Enhancement in the event of a full or partial withdrawal. The amount of the Credit Enhancement forfeiture is calculated in accordance with the Extra Credit Rider. See “Extra Credit.” You should consider whether purchasing an Extra Credit Rider (which recaptures all or a portion of the related Credit
42
Enhancements upon any withdrawal within seven years) with the Alternate Withdrawal Charge Rider  4-Year Schedule is appropriate based on your circumstances. If you do not plan to take withdrawals in excess of the free withdrawal amount within seven years of the date of a purchase Payment, this rider is not appropriate for you. See “Extra Credit.”
The 4-Year Alternate Withdrawal Charge Rider provides a potential benefit only if a withdrawal is taken in the five to seven years after the applicable Purchase Payment date because for the first four years after the Purchase Payment date, the withdrawal charges are the same as they would be under the seven-year schedule. The Company expects to make a profit from the charge for these riders.
Example of the 0-Year Alternate Withdrawal Charge. Assume:
(i)
The Owner purchased the Contract with the 0-Year Alternate Withdrawal Charge Rider.
(ii)
The Owner requests a withdrawal of $25,000 in Contract Year 2.
(iii)
The free withdrawal amount for Contract Year 2 is $10,000.
Without the 0-Year Alternate Withdrawal Charge Rider, the charge applicable to the $25,000 withdrawal would be $1,050, calculated as follows: ($25,000 - $10,000) x 7% Withdrawal Charge, and the Owner would receive $23,950 ($25,000 - $1,050). With the 0-Year Alternate Withdrawal Charge Rider, there is no Withdrawal Charge, and the Owner receives the full $25,000.
Example of the 4-Year Alternate Withdrawal Charge. Assume:
(i)
The Owner purchased the Contract with the 4-Year Alternate Withdrawal Charge Rider.
(ii)
The Owner requests a withdrawal of $25,000 in Contract Year 5.
(iii)
The free withdrawal amount for Contract Year 5 is $10,000.
Without the 4-Year Alternate Withdrawal Charge Rider, the charge applicable to the $25,000 withdrawal would be $600, calculated as follows: ($25,000 - $10,000) x 4% Withdrawal Charge, and the Owner would receive $24,400 ($25,000 - $600). With the 4-Year Alternate Withdrawal Charge Rider, there is no Withdrawal Charge, and the Owner receives the full $25,000.
Riders Previously Available for Purchase — A number of other riders previously offered with the Contract are no longer available for purchase. Please refer to Appendix B – Riders No Longer Available – Available for Purchase Only Prior to February 1, 2010 and Appendix C – Bonus Credit Rider for a description of these riders.
Annuity Period
General — You select the Annuity Start Date at the time of application. The Annuity Start Date must not be earlier than the 12-month anniversary of the Contract Date and may not be deferred beyond the later of the Annuitant’s 90th birthday or the tenth annual Contract anniversary, although the terms of a Qualified Plan and the laws of New York may require that you start annuity payments at an earlier age. If you do not select an Annuity Start Date, the Annuity Start Date will be the later of the Annuitant’s 70th birthday or the tenth annual Contract anniversary. If you do not select an Annuity Option, annuity payments will not begin until you make a selection, which may be after the Annuity Start Date. Any applicable death benefit will terminate at the Annuity Start Date without value. See “Selection of an Option.” If there are Joint Annuitants, the birth date of the older Annuitant will be used to determine the latest Annuity Start Date.
On the Annuity Start Date, the proceeds under the Contract will be applied to provide an annuity under one of the options described below. Each option is available as a variable, fixed, or combination of variable and fixed Annuity for use with the Subaccounts. Variable annuity payments will fluctuate with the investment performance of the applicable Subaccounts. The proceeds under the Contract will be equal to your Contract Value as of the Annuity Start Date, reduced by any applicable premium taxes and a pro rata account administration charge, if applicable.
The Contract currently provides for six Annuity Options. The Company may make other Annuity Options available upon request. The Company may discontinue the availability of one or more of these options at any time but will always offer a variable annuity option. Annuity payments under Annuity Options 1 through 6 are based upon annuity rates that vary with the Annuity Option selected. In the case of Annuity Options 1 through 4 and 6, the annuity rates will vary based on the age and sex of the Annuitant, except that unisex rates are available where
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required by law. The annuity rates reflect the Annuitant’s life expectancy based upon the Annuitant’s age as of the Annuity Start Date and the Annuitant’s gender, unless unisex rates apply. The annuity rates are based upon the 1983(a) mortality table with mortality improvement under Projection Scale G and are adjusted to reflect an assumed interest rate of 3.5%, compounded annually, for the variable annuity.
Annuity Options 1 through 4 and 6 provide for payments to be made during the lifetime of the Annuitant. Annuity payments under such options cease in the event of the Annuitant’s death, unless the option provides for a guaranteed minimum number of payments, for example a life income with guaranteed payments of 5, 10, 15 or 20 years. The level of annuity payments will be greater for shorter guaranteed periods and less for longer guaranteed periods. Similarly, payments will be greater for life annuities than for joint and survivor annuities, because payments for life annuities are expected to be made for a shorter period.
You may elect to receive annuity payments on a monthly, quarterly, semiannual, or annual basis, although no payments will be made for less than $100. If the frequency of payments selected would result in payments of less than $100, the Company reserves the right to change the frequency. For example, if you select monthly payments and your payment amount would be $75 per month, the Company could elect to change your payment frequency to quarterly as less frequent payments will result in a larger payment amount (assuming the same amount is applied to purchase the annuity).
You may designate or change an Annuity Start Date, Annuity Option, or Annuitant, provided proper written notice is received by the Company at its Administrative Office at least 30 days prior to the Annuity Start Date set forth in the Contract. The date selected as the new Annuity Start Date must be at least 30 days after the date written notice requesting a change of Annuity Start Date is received at the Company’s Administrative Office.
Once annuity payments have commenced under Annuity Options 1 through 4 and 6, an Annuitant or Owner cannot change the Annuity Option and cannot make partial withdrawals or surrender his or her annuity for the Withdrawal Value. An Owner also cannot change the Annuity Option or make partial withdrawals or surrender his or her annuity for the Withdrawal Value if he or she has elected fixed annuity payments under Option 5.
If an Owner has elected variable annuity payments or a combination of variable and fixed annuity payments under Annuity Option 5, an Owner may elect to withdraw the present value of future annuity payments, commuted at the assumed interest rate, subject to a reduction for any applicable withdrawal charge and any uncollected premium tax. If the Owner elects a partial withdrawal under Annuity Option 5, future variable annuity payments will be reduced as a result of such withdrawal. The Company will make payment in the amount of the partial withdrawal requested and will reduce the amount of future annuity payments by a percentage that is equal to the ratio of (i) the partial withdrawal, plus any applicable withdrawal charge and any uncollected premium tax, over (ii) the present value of future annuity payments, commuted at the assumed interest rate. The number of Annuity Units used in calculating future variable annuity payments is reduced by the applicable percentage. The tax treatment of partial withdrawals taken after the Annuity Start Date is uncertain. Consult a tax adviser before requesting a withdrawal after the Annuity Start Date. The Owner may not make systematic withdrawals under Annuity Option 5. See “Value of Variable Annuity Payments: Assumed Interest Rate” for more information with regard to how the Company calculates variable annuity payments.
An Owner or Annuitant may transfer Contract Value among the Subaccounts during the Annuity Period, as was available during the accumulation phase, if variable annuity payments have been selected. The Contract specifies annuity tables for Annuity Options 1 through 6, described below. The tables, adjusted to reflect the assumed interest rate, contain the guaranteed minimum dollar amount (per $1,000 applied) of the first annuity payment for a variable Annuity.
Annuity Options —
Option 1 — Life Income. Periodic annuity payments will be made during the lifetime of the Annuitant. It is possible under this Option for any Annuitant to receive only one annuity payment if the Annuitant’s death occurred prior to the due date of the second annuity payment, two if death occurred prior to the due date of the third annuity payment, etc. There is no minimum number of payments guaranteed under this option. Payments will cease upon the death of the Annuitant regardless of the number of payments received.
Option 2 — Life Income with Guaranteed Payments of 5, 10, 15 or 20 Years. Periodic annuity payments will be made during the lifetime of the Annuitant with the promise that if, at the death of the Annuitant, payments have been made for less than a stated period, which may be five, ten, fifteen or twenty years, as elected by the Owner, annuity payments will be continued during the remainder of such period to the Designated Beneficiary. Upon the Annuitant’s death after the period certain, no further annuity payments will be made. If you have elected the Guaranteed Minimum Income Benefit Rider, you may apply the Minimum Income Benefit to purchase a fixed Life
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Income Annuity with a 10-year period certain. The annuity rates under the rider are based upon the 1983(a) mortality table with mortality improvement under Projection Scale G and an interest rate of 2½% in lieu of the rate described above.
Option 3 — Life with Installment or Unit Refund Option. Periodic annuity payments will be made during the lifetime of the Annuitant with the promise that, if at the death of the Annuitant, the number of payments that has been made is less than the number determined by dividing the amount applied under this Annuity Option by the amount of the first payment, annuity payments will be continued to the Designated Beneficiary until that number of payments has been made. For example, if the Annuity start amount was $100,000 and the calculated monthly annuity payment was $550, 182 payments ($100,000 / $550) would be guaranteed for the life of the Annuitant. This means if the Annuitant dies before 182 payments have been made, the remaining annuity payments will be continued to the Designated Beneficiary.
Option 4 —
A. Joint and Last Survivor. Annuity payments will be made as long as either Annuitant is living. Upon the death of one Annuitant, annuity payments continue to the surviving Annuitant at the same or a reduced level of 75%, 66 2/3% or 50% of annuity payments as elected by the Owner at the time the Annuity Option is selected. The number of Annuity Units used to determine the annuity payment is reduced as of the first annuity payment following the Annuitant’s death. It is possible under this Option for only one annuity payment to be made if both Annuitants died prior to the second annuity payment due date, two if both died prior to the third annuity payment due date, etc. As in the case of Option 1, there is no minimum number of payments guaranteed under this Option 4A. Payments cease upon the death of the last surviving Annuitant, regardless of the number of payments received.
B. Joint and Last Survivor with Guaranteed Payments of 5, 10, 15 or 20 Years. You may also select Option 4 with guaranteed payments. Annuity payments will be made as long as either Annuitant is living. Upon the death of one Annuitant, Annuity Payments continue to the surviving Annuitant at the same level with the promise that if, at the death of the both Annuitants, payments have been made for less than a stated period, which may be five, ten, fifteen or twenty years, as elected by the Owner, annuity payments will be continued during the remainder of such period to the Designated Beneficiary. Upon the last death of the Annuitants after the period certain, no further annuity payments will be made. If you have elected the Guaranteed Minimum Income Benefit Rider, you may apply the Minimum Income Benefit to purchase a fixed Joint and Last Survivor Annuity with a 10-year period certain. The annuity rates under the rider are based upon the 1983(a) mortality table with mortality improvement under Projection Scale G and an interest rate of 2½% in lieu of the rate described above.
Option 5 —Period Certain. Periodic annuity payments will be made for a stated period, which may be 10, 15 or 20 years, as elected by the Owner. If the Annuitant dies prior to the end of the period, the remaining payments will be made to the Designated Beneficiary.
Option 6 — Joint and Contingent Survivor Option. Periodic annuity payments will be made during the life of the primary Annuitant. Upon the death of the primary Annuitant, payments will be made to the contingent Annuitant during his or her life. If the contingent Annuitant is not living upon the death of the primary Annuitant, no payments will be made to the contingent Annuitant. It is possible under this Option for only one annuity payment to be made if both Annuitants died prior to the second annuity payment due date, two if both died prior to the third annuity payment due date, etc. As in the case of Options 1 and 4A, there is no minimum number of payments guaranteed under this Option. Payments cease upon the death of the last surviving Annuitant, regardless of the number of payments received.
Value of Variable Annuity Payments: Assumed Interest Rate. The annuity tables in the Contract which are used to calculate variable annuity payments for Annuity Options 1 through 6 are based on an “assumed interest rate” of 3.5%, compounded annually. Variable annuity payments generally increase or decrease from one annuity payment date to the next based upon the performance of the applicable Subaccounts during the interim period adjusted for the assumed interest rate. If the net performance of the Subaccount selected is equal to the assumed interest rate, the annuity payments will remain constant. If the net performance of the Subaccounts is greater than the assumed interest rate, the annuity payments will increase and if it is less than the assumed interest rate, the annuity payments will decline. A higher assumed interest rate would mean a higher initial annuity payment but the amount of the annuity payment would increase more slowly in a rising market (or the amount of the annuity payment would decline more rapidly in a declining market). A lower assumption would have the opposite effect.
The Company calculates variable annuity payments under Options 1 through 6 using Annuity Units. The value of an Annuity Unit for each Subaccount is determined as of each Valuation Date and was initially $1.00. The Annuity Unit value of a Subaccount as of any subsequent Valuation Date is determined by adjusting the Annuity Unit value on the previous Valuation Date for (1) the interim performance of the corresponding Underlying Fund; (2) any dividends or distributions paid by the corresponding Underlying Fund; (3) the mortality and expense risk and
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administration charges; (4) the charges, if any, that may be assessed by the Company for taxes attributable to the operation of the Subaccount; and (5) the assumed interest rate.
The Company determines the number of Annuity Units used to calculate each variable annuity payment as of the Annuity Start Date. As discussed above, the Contract specifies annuity rates for Options 1 through 6 for each $1,000 applied to an Annuity Option. The proceeds under the Contract as of the Annuity Start Date, are divided by 1,000 and the result is multiplied by the rate per 1,000 specified in the annuity tables to determine the initial annuity payment for a variable annuity.
On the Annuity Start Date, the Company divides the initial variable annuity payment by the value as of that date of the Annuity Unit for the applicable Subaccount to determine the number of Annuity Units to be used in calculating subsequent annuity payments. If variable annuity payments are allocated to more than one Subaccount, the number of Annuity Units will be determined by dividing the portion of the initial variable annuity payment allocated to a Subaccount by the value of that Subaccount’s Annuity Unit as of the Annuity Start Date. The initial variable annuity payment is allocated to the Subaccounts in the same proportion as the Contract Value is allocated as of the Annuity Start Date. The number of Annuity Units will remain constant for subsequent annuity payments, unless the Owner transfers Annuity Units among Subaccounts or makes a withdrawal under Option 5.
Subsequent variable annuity payments are calculated by multiplying the number of Annuity Units allocated to a Subaccount by the value of the Annuity Unit as of the date of the annuity payment. If the annuity payment is allocated to more than one Subaccount, the annuity payment is equal to the sum of the payment amount determined for each Subaccount.
Selection of an Option — You should carefully review the Annuity Options with your financial or tax adviser. If you have questions about the calculation of the payment amount under a particular Annuity Option, you can contact the Company at 1-800-888-2461. For Contracts used in connection with a Qualified Plan, reference should be made to the terms of the particular Qualified Plan and the requirements of the Internal Revenue Code for pertinent limitations respecting annuity payments and other matters. For instance, Qualified Plans generally require that distributions begin no later than April 1 of the calendar year following the year in which the Annuitant reaches their “applicable age” as defined in the Code. If the Annuitant attains age 72 after 2022 and age 73 before 2033, their applicable age is 73. If Annuitant attains age 74 after 2032, their applicable age is 75. In addition, under a Qualified Plan, not all Annuity Options will satisfy required minimum distribution rules, particularly as those rules apply to your beneficiary after your death. Beginning with Owner deaths occurring on or after January 1, 2020, subject to certain exceptions, most non-spouse beneficiaries must complete distributions within ten years of the Owner’s death in order to satisfy required minimum distribution rules. Consult a tax adviser before electing an Annuity Option. The Company does not allow the Annuity Start Date to be deferred beyond the later of the Annuitant’s 90th birthday or the tenth annual Contract Anniversary.
The Fixed Account
You may allocate all or a portion of your Purchase Payments and transfer Contract Value to the Fixed Account. Amounts allocated to the Fixed Account become part of the Company’s General Account, which supports the Company’s insurance and annuity obligations. The Company’s General Account is subject to regulation and supervision by the New York Department of Insurance. In reliance on certain exemptive and exclusionary provisions, interests in the Fixed Account have not been registered as securities under the Securities Act of 1933 (the “1933 Act”) and the Fixed Account has not been registered as an investment company under the Investment Company Act of 1940 (the “1940 Act”). Accordingly, neither the Fixed Account nor any interests therein are generally subject to the provisions of the 1933 Act or the 1940 Act. This disclosure, however, is subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in this Prospectus. This Prospectus is generally intended to serve as a disclosure document only for aspects of a Contract involving the Separate Account and contains only selected information regarding the Fixed Account. For more information regarding the Fixed Account, see “The Contract.”
Amounts allocated to the Fixed Account become part of the General Account of the Company, which consists of all assets owned by the Company other than those in the Separate Account and other separate accounts of the Company. Subject to applicable law, the Company has sole discretion over investment of the assets of its General Account. Please note that any amounts we guarantee in connection with the Fixed Account are subject to our financial strength and claims-paying ability.
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Interest — Contract Value allocated to the Fixed Account earns interest at a fixed rate or rates that are paid by the Company. The Contract Value in the Fixed Account earns interest at an interest rate that is guaranteed to be at least a specified minimum rate (“Guaranteed Rate”). The Guaranteed Rate accrues daily and ranges from an annual effective rate of 1% to 3% based upon New York requirements. Such interest will be paid regardless of the actual investment experience of the Fixed Account. The principal, after charges and deductions, also is guaranteed. In addition, the Company may, in its discretion, pay interest at a rate (“Current Rate”) that exceeds the Guaranteed Rate. The Company will determine the Current Rate, if any, from time to time. Because the Company may declare a Current Rate in its sole discretion, you assume the risk that interest credited to Contract Value in the Fixed Account may not exceed the Guaranteed Rate.
Contract Value allocated or transferred to the Fixed Account will earn interest at the Guaranteed Rate (or Current Rate, if any), in effect on the date such portion of Contract Value is allocated or transferred to the Fixed Account. The Current Rate paid on any such portion of Contract Value allocated or transferred to the Fixed Account will be guaranteed for rolling periods of one or more years (each a “Guarantee Period”). The Company currently offers only Guarantee Periods of one year. Upon expiration of any Guarantee Period, a new Guarantee Period of the same duration begins with respect to that portion of Contract Value, which will earn interest at the Current Rate, if any, declared on the first day of the new Guarantee Period.
Because the Company may, in its sole discretion, anticipate changing the Current Rate from time to time, Contract Value allocated or transferred to the Fixed Account at one point in time may be credited with a different Current Rate than amounts allocated or transferred to the Fixed Account at another point in time. For example, amounts allocated to the Fixed Account in June may be credited with a different current rate than amounts allocated to the Fixed Account in July. In addition, if Guarantee Periods of different durations are offered, Contract Value allocated or transferred to the Fixed Account for a Guarantee Period of one duration may be credited with a different Current Rate than amounts allocated or transferred to the Fixed Account for a Guarantee Period of a different duration. Therefore, at any time, various portions of your Contract Value in the Fixed Account may be earning interest at different Current Rates depending upon the point in time such portions were allocated or transferred to the Fixed Account and the duration of the Guarantee Period. The Company bears the investment risk for the Contract Value allocated to the Fixed Account and for paying interest at the Guaranteed Rate on amounts allocated to the Fixed Account.
For purposes of determining the interest rates to be credited on Contract Value in the Fixed Account, transfers from the Fixed Account pursuant to the Dollar Cost Averaging or Asset Reallocation Options will be deemed to be taken in the following order: (1) from any portion of Contract Value allocated to the Fixed Account for which the Guarantee Period expires during the calendar month in which the withdrawal, loan, or transfer is effected; (2) then in the order beginning with that portion of such Contract Value which has the longest amount of time remaining before the end of its Guarantee Period and (3) ending with that portion which has the least amount of time remaining before the end of its Guarantee Period. For more information about transfers and withdrawals from the Fixed Account, see “Transfers and Withdrawals From the Fixed Account.”
If permitted by your Contract, the Company may discontinue accepting Purchase Payments or transfers into the Fixed Account at any time.
Death Benefit — The death benefit under the Contract will be determined in the same fashion for a Contract that has Contract Value allocated to the Fixed Account as for a Contract that has Contract Value allocated to the Subaccounts. See “Death Benefit.”
Contract Charges — Premium taxes, if any, and the account administration, optional rider and withdrawal charges will be the same for Owners who allocate Purchase Payments or transfer Contract Value to the Fixed Account as for those who allocate Purchase Payments or transfer Contract Value to the Subaccounts. For Contract Value that is allocated to the Fixed Account, any optional rider charges are deducted from Current Interest. The charges for mortality and expense risks will not be assessed against the Fixed Account, and any amounts that the Company pays for income taxes allocable to the Subaccounts will not be charged against the Fixed Account. In addition, you will not pay directly or indirectly the investment advisory fees and other operating expenses of the Underlying Funds to the extent Contract Value is allocated to the Fixed Account; however, you will not participate in the investment experience of the Subaccounts.
Transfers and Withdrawals from the Fixed Account — You may transfer amounts from the Subaccounts to the Fixed Account and from the Fixed Account to the Subaccounts, subject to the following limitations. Transfers from the Fixed Account are allowed only (1) during the calendar month in which the applicable Guarantee Period expires, (2) pursuant to the Dollar Cost Averaging Option, provided that such transfers are
47
scheduled to be made over a period of not less than six months, and (3) pursuant to the Asset Reallocation Option, provided that, upon receipt of the Asset Reallocation request, Contract Value is allocated among the Fixed Account and the Subaccounts in the percentages selected by the Owner without violating the restrictions on transfers from the Fixed Account set forth in (1) above. Accordingly, if you desire to implement the Asset Reallocation Option, you should do so at a time when Contract Value may be transferred from the Fixed Account to the Subaccounts without violating the restrictions on transfers from the Fixed Account. Once you implement an Asset Reallocation Option, the restrictions on transfers will not apply to transfers made pursuant to the Option.
The minimum amount that you may transfer from the Fixed Account to the Subaccounts is the lesser of (i) $500 or (ii) the amount of Contract Value for which the Guarantee Period expires in the calendar month that the transfer is effected. Transfers of Contract Value pursuant to the Dollar Cost Averaging and Asset Reallocation Options are not currently subject to any minimums. The Company reserves the right to limit the number of transfers permitted each Contract Year to 14 transfers, to suspend transfers and to limit the amount that may be subject to transfers. See “Transfers of Contract Value.”
If Purchase Payments are allocated (except Purchase Payments made pursuant to an Automatic Investment Program), or Contract Value is transferred, to the Fixed Account, any transfers from the Fixed Account in connection with the Dollar Cost Averaging or Asset Reallocation Options will automatically terminate as of the date of such Purchase Payment or transfer. You may reestablish Dollar Cost Averaging or Asset Reallocation by submitting a written request to the Company. However, if for any reason a Dollar Cost Averaging Option is canceled, you may only reestablish the option after the expiration of the next anniversary that corresponds to the period selected in establishing the option.
You may also make full or partial withdrawals to the same extent as if you had allocated Contract Value to the Subaccounts. However, no partial withdrawal request will be processed which would result in the withdrawal of Contract Value from the Loan Account. See “Full and Partial Withdrawals” and “Systematic Withdrawals.” In addition, to the same extent as Owners with Contract Value in the Subaccounts, the Owner of a Contract used in connection with a Qualified Plan may obtain a loan if so permitted under the terms of the Qualified Plan. See “Loans.”
Payments from the Fixed Account — Full and partial withdrawals, loans, and transfers from the Fixed Account may be delayed for up to six months after a request in good order is received by the Company at its Administrative Office. During the period of deferral, interest at the applicable interest rate or rates will continue to be credited to the amounts allocated to the Fixed Account.
More About the Contract
Ownership — The Owner is the person named as such in the application or in any later change shown in the Company’s records. While living, the Owner alone has the right to receive all benefits and exercise all rights that the Contract grants or the Company allows. The Owner may be an entity that is not a living person such as a trust or corporation referred to herein as “Non-natural Persons.” See “Federal Tax Matters.”
Joint Owners. The Joint Owners will be joint tenants with rights of survivorship and upon the death of an Owner, the surviving Owner shall be the sole Owner. Any Contract transaction requires the signature of all persons named jointly.
Designation and Change of Beneficiary — The Designated Beneficiary is the person having the right to the death benefit, if any, payable upon the death of the Owner or Joint Owner prior to the Annuity Start Date. The Designated Beneficiary is the first person on the following list who, if a natural person, is alive on the date of death of the Owner or the Joint Owner: the Owner; the Joint Owner; the Primary Beneficiary; the Secondary Beneficiary; the Annuitant; or if none of the above are alive, the Owner’s estate. The Primary Beneficiary is the individual named as such in the application or any later change shown in the Company’s records. The Primary Beneficiary will receive the death benefit of the Contract only if he or she is alive on the date of death of both the Owner and any Joint Owner prior to the Annuity Start Date. Because the death benefit of the Contract goes to the first person on the above list who is alive on the date of death of any Owner, careful consideration should be given to the manner in which the Contract is registered, as well as the designation of the Primary Beneficiary. The Owner may change the Primary Beneficiary at any time while the Contract is in force by written request on forms provided by the Company and received by the Company at its Administrative Office. The change will not be binding on the Company until it is received and recorded at its Administrative Office. The change will be effective as of the date this form is signed subject to any payments made or other actions taken by the Company before the change is received and recorded. A Secondary Beneficiary may be designated. The Owner may designate a permanent Beneficiary whose rights under the Contract cannot be changed without his or her consent.
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Reference should be made to the terms of a particular Qualified Plan and any applicable law for any restrictions or limitations on the designation of a Beneficiary. Some qualified plans do not allow the designation of any primary beneficiary other than a spouse unless the spouse consents to such designation and the consent is witnessed by a plan representative or a notary public. Not all Annuity Options will satisfy required minimum distribution rules for every Beneficiary.
Dividends — The Contract does not share in the surplus earnings of the Company, and no dividends will be paid.
Payments from the Separate Account — The Company generally will pay any full or partial withdrawal (including systematic withdrawals and withdrawals to pay investment advisory fees) or death benefit proceeds from Contract Value allocated to the Subaccounts within seven days after a proper request is received at the Company’s Administrative Office. However, the Company can postpone such a payment from the Subaccounts to the extent permitted under applicable law, which is currently permissible only for any period:
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During which the NYSE is closed other than customary weekend and holiday closings,
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During which trading on the NYSE is restricted as determined by the SEC,
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During which an emergency, as determined by the SEC, exists as a result of which (i) disposal of securities held by the Separate Account is not reasonably practicable, or (ii) it is not reasonably practicable to determine the value of the assets of the Separate Account, or
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For such other periods as the SEC may by order permit for the protection of investors.
The Company reserves the right to delay payments of any full or partial withdrawal until all of your Purchase Payment checks have been honored by your bank.
If, pursuant to SEC rules, the Invesco V.I. Government Money Market Fund chooses to suspend payments of redemption proceeds by imposing a temporary “redemption gate,” we will delay payment of any transfer, full or partial withdrawal, or death benefit from the Invesco V.I. Government Money Market Subaccount until the Fund redemption gate has been lifted.
Proof of Age and Survival — The Company may require proof of age or survival of any person on whose life annuity payments depend.
Misstatements — If you misstate the age or sex of an Annuitant or Owner, the correct amount paid or payable by the Company under the Contract shall be such as the Contract Value would have provided for the correct age or sex (unless unisex rates apply).
Business Disruption and Cybersecurity Risks — We rely on technology, including interconnected computer systems and data storage networks and digital communications, to conduct our variable product business activities. Because our variable product business is highly dependent upon the effective operation of our computer systems and those of our service providers and other business partners, our business is vulnerable to disruptions from utility outages, and susceptible to operational and information security risks resulting from information systems failure (e.g., hardware and software malfunctions) and cyber-attacks. Cyber-attacks may be systemic (e.g. affecting the internet, cloud services, or other infrastructure) or targeted (e.g. failures in or breach of our systems or those of third parties on whom we rely, including ransomware and malware attacks).
Cybersecurity risks include, but are not limited to, the loss, theft, misuse, corruption, and destruction of data maintained online or digitally, interference with or denial of service, attacks on our website (or the websites of third parties on whom we rely), disruption of routine business operations, and unauthorized release of confidential customer information. The risk of cyber-attacks may be higher during periods of geopolitical turmoil. Due to the increasing sophistication of cyber-attacks, a cybersecurity breach could occur and persist for an extended period of time without detection.
Systems failures and cybersecurity incidents affecting us, our affiliates, the Underlying Funds, intermediaries, service providers, and other third parties on whom we rely may adversely affect your contract value and interfere with our ability to process contract transactions and calculate contract values. Systems failures and cybersecurity breaches may cause us to be unable to process orders from our website or with the Underlying Funds, cause us to be unable to calculate unit values and/or the Underlying Funds to be unable to calculate share values, cause the release or possible destruction of confidential customer and/or business information, impede order processing or
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cause other operational issues, subject us and our service providers and intermediaries to regulatory fines, litigation, and financial losses, and/or cause reputational damage. Cybersecurity risks may also impact the issuers of securities in which the Underlying Funds invest, which may cause the Underlying Funds to lose value.
The preventative actions we take to reduce the frequency and severity of cybersecurity incidents and protect our computer systems may be insufficient to prevent a cybersecurity breach from impacting our operations or your contract value. There can be no assurance that we or the Underlying Funds or our service providers and intermediaries will be able to avoid cybersecurity breaches affecting your contract.
In addition, we are also exposed to risks related to natural and man-made disasters including, but not limited to, storms, fires, floods, earthquakes, public health crises, malicious acts, and terrorist acts, which could adversely affect our ability to conduct business. A natural or man-made disaster, including a pandemic (such as COVID-19), could affect the ability of our employees or the employees of our service providers to perform their job responsibilities. They could interfere with our processing of contract transactions, including processing orders from Owners and orders with the Underlying Funds, impact our ability to calculate contract value, or have other adverse impacts on our operations. These events may also negatively affect the our service providers and intermediaries, the Underlying Funds and the issuers of securities in which the Underlying Funds invest, which may cause the Underlying Funds to lose value. There can be no assurance that we or the Underlying Funds or our service providers and intermediaries will be able to avoid negative impacts associated with natural and man-made disasters.
Restrictions on Withdrawals from Qualified Plans — Section 403(b) imposes restrictions on certain distributions from tax-sheltered annuity contracts meeting the requirements of Section 403(b). Section 403(b) requires that distributions from Section 403(b) tax-sheltered annuities that are attributable to employee contributions made after December 31, 1988 under a salary reduction agreement begin only after the employee (i) reaches age 59½, (ii) has a severance from employment, (iii) dies, (iv) becomes disabled, or (v) incurs a hardship. Furthermore, effective for plan years beginning in 2024, distributions of employee elective deferrals, qualified nonelective contributions, qualified matching contributions, and gains attributable to such contributions may be made on account of hardship. Under prior provisions, distributions on account of hardship generally were limited to amounts attributable to employee elective deferrals. Hardship, for this purpose, is generally defined as an immediate and heavy financial need, such as paying for medical expenses, purchasing a residence, paying certain tuition expenses, paying for funeral expenses, paying for casualty losses on your principal residence, or paying amounts needed to avoid eviction or foreclosure that may only be met by the distribution.
If you own a Contract purchased as a tax-sheltered Section 403(b) annuity contract, you will not, therefore, be entitled to make a full or partial withdrawal, as described in this Prospectus, in order to receive proceeds from the Contract attributable to contributions under a salary reduction agreement or any gains credited to such Contract after December 31, 1988 unless one of the above-described conditions has been satisfied. In the case of transfers of amounts accumulated in a different Section 403(b) contract to this Contract under a Section 403(b) program, the withdrawal constraints described above would not apply to the amount transferred to the Contract designated as attributable to the Owner’s December 31, 1988 account balance under the old contract, provided the amounts transferred between contracts qualified as a rollover under the Internal Revenue Code. An Owner of a Contract may be able to transfer your Contract’s Withdrawal Value to certain other investment alternatives meeting the requirements of Section 403(b) that are available under your employer’s Section 403(b) arrangement.
Your particular Qualified Plan or 403(b) plan or program may have additional restrictions on distributions that may also be followed for your Contract. The distribution or withdrawal of amounts under a Contract purchased in connection with a Qualified Plan may result in the receipt of taxable income to the Owner or Annuitant and in some instances may also result in a penalty tax. Therefore, you should carefully consider the tax consequences of a distribution or withdrawal under a Contract and you should consult a competent tax adviser. See “Federal Tax Matters.”
If your Contract was issued pursuant to a 403(b) plan, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders or transfers you request comply with applicable tax requirements and to decline requests that are not in compliance. We will defer such payments you request until all information required under the tax law has been received. By requesting a surrender or transfer, you consent to the sharing of confidential information about you, the contract, and transactions under the contract and any other 403(b) contracts or accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or recordkeeper, and other product providers.
Generally, a Qualified Plan under Code sections 401(a), 403(b) or 457 may not permit the distribution or withdrawal of amounts accumulated under the Plan until after a fixed number of years, the attainment of a stated age or upon the occurrence of a specific event such as hardship, disability, retirement, death or termination of employment. Therefore, if you own a Contract purchased in connection with one of these Qualified Plans, you may
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not be entitled to make a full or partial withdrawal (including systematic withdrawals), as described in this Prospectus, unless one of the above-described conditions has been satisfied. For this reason, you should refer to the terms of your particular Qualified Plan, the Internal Revenue Code and other applicable law for any limitation or restriction on distributions and withdrawals, including the 10% penalty tax that may be imposed in the event of a distribution from a Qualified Plan before the participant reaches age 59½. See the discussion under “Tax Penalties.”
Federal Tax Matters
Introduction — The Contract described in this Prospectus is designed for use by individuals in retirement plans which may or may not be Qualified Plans under the provisions of the Internal Revenue Code (“Code”). The ultimate effect of federal income taxes on the amounts held under a Contract, on annuity payments, and on the economic benefits to the Owner, the Annuitant, and the Beneficiary or other payee will depend upon the type of retirement plan, if any, for which the Contract is purchased, the tax and employment status of the individuals involved and a number of other factors. The discussion contained herein and in the Statement of Additional Information is general in nature and is not intended to be an exhaustive discussion of all questions that might arise in connection with a Contract. It is based upon the Company’s understanding of the present federal income tax laws as currently interpreted by the Internal Revenue Service (“IRS”) as of the date of this Prospectus, and is not intended as tax advice. No representation is made regarding the likelihood of continuation of the present federal income tax laws or of the current interpretations by the IRS or the courts. Future legislation may affect annuity contracts adversely. Moreover, no attempt has been made to consider any applicable state or other laws. Because of the inherent complexity of the tax laws and the fact that tax results will vary according to the particular circumstances of the individual involved and, if applicable, the Qualified Plan, a person should consult with a qualified tax adviser regarding the purchase of a Contract, the selection of an Annuity Option under a Contract, the receipt of annuity payments under a Contract or any other transaction involving a Contract. The Company does not make any guarantee regarding the tax status of, or tax consequences arising from, any Contract or any transaction involving the Contract.
Tax Status of the Company and the Separate Account —
General. The Company intends to be taxed as a life insurance company under Part I, Subchapter L of the Code. Because the operations of the Separate Account form a part of the Company, the Company will be responsible for any federal income taxes that become payable with respect to the income of the Separate Account and its Subaccounts.
Charge for the Company’s Taxes. A charge may be made for any federal taxes incurred by the Company that are attributable to the Separate Account, the Subaccounts or to the operations of the Company with respect to the Contract or attributable to payments, premiums, or acquisition costs under the Contract. The Company will review the question of a charge to the Separate Account, the Subaccounts or the Contract for the Company’s federal taxes periodically. Charges may become necessary if, among other reasons, the tax treatment of the Company or of income and expenses under the Contract is ultimately determined to be other than what the Company currently believes it to be, if there are changes made in the federal income tax treatment of variable annuities at the insurance company level, or if there is a change in the Company’s tax status.
Under current laws, the Company may incur state and local taxes (in addition to premium taxes) in several states. At present, these taxes are not significant. If there is a material change in applicable state or local tax laws, the Company reserves the right to charge the Separate Account or the Subaccounts for such taxes, if any, attributable to the Separate Account or Subaccounts.
Optional Benefit Riders. It is possible that the Internal Revenue Service may take the position that fees deducted for certain optional benefit riders are deemed to be taxable distributions to you. In particular, the Internal Revenue Service may treat fees deducted for the optional benefits as taxable withdrawals, which might also be subject to a tax penalty if withdrawn prior to age 59½. Although we do not believe that the fees associated or any optional benefit provided under the Contract should be treated as taxable withdrawals, you should consult your tax advisor prior to selecting any optional benefit under the Contract.
Withholding. Annuity distributions are generally subject to withholding for the recipient’s federal income tax liability. Recipients can generally elect, however, not to have tax withheld from distributions.
Diversification Standards. Each Underlying Fund will be required to adhere to regulations adopted by the Treasury Department pursuant to Section 817(h) of the Code prescribing asset diversification requirements for investment companies whose shares are sold to insurance company separate accounts funding variable contracts. Pursuant to these regulations, on the last day of each calendar quarter (or on any day within 30 days thereafter), no
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more than 55% of the total assets of an Underlying Fund may be represented by any one investment, no more than 70% may be represented by any two investments, no more than 80% may be represented by any three investments, and no more than 90% may be represented by any four investments. For purposes of Section 817(h), securities of a single issuer generally are treated as one investment but obligations of the U.S. Treasury and each U.S. Governmental agency or instrumentality generally are treated as securities of separate issuers. The Separate Account, through the Underlying Fund, intends to comply with the diversification requirements of Section 817(h).
Owner Control. In certain circumstances, owners of Non-Qualified variable annuity contracts may be considered the owners, for federal income tax purposes, of the assets of the separate account used to support their contracts. In those circumstances, income and gains from the separate account assets would be includable currently in the variable contract owner’s gross income. The ownership rights under the Contract are similar to, but different in certain respects from, those described by the IRS in rulings in which it was determined that policyowners were not owners of separate account assets. For example, the Owner has additional flexibility in allocating Purchase Payments and Contract Values. While the Company does not think that such will be the case, these differences could result in an Owner being treated as the owner of a pro rata portion of the assets of the Separate Account. The Company nonetheless reserves the right to modify the Contract, as it deems appropriate, to attempt to prevent an Owner from being considered the owner of a pro rata share of the assets of the Separate Account. Moreover, in the event that regulations are adopted or rulings are issued, there can be no assurance that the Underlying Funds will be able to operate as currently described in the Prospectus, or that the Underlying Funds will not have to change their investment objectives or investment policies.
Income Taxation of Annuities in General—Non-Qualified Contracts — Section 72 of the Code governs the taxation of annuities. In general, a contract owner is not taxed on increases in value under an annuity contract until some form of distribution is made under the contract. However, the increase in value may be subject to tax currently under certain circumstances. See “Contracts Owned by Non-Natural Persons,” “Diversification Standards,” and “Owner Control.” Withholding of federal income taxes on all distributions may be required unless a recipient who is eligible elects not to have any amounts withheld and properly notifies the Company of that election.
Withdrawals Prior to the Annuity Start Date. Code Section 72 provides generally that amounts received upon a total or partial withdrawal (including systematic withdrawals and withdrawals to pay investment advisory fees) from a Non-Qualified Contract prior to the Annuity Start Date generally will be treated as gross income to the extent that the cash value of the Contract immediately before the withdrawal (determined without regard to any withdrawal charge in the case of a partial withdrawal) exceeds the “investment in the contract.” The “investment in the contract” is that portion, if any, of Purchase Payments paid under a Contract less any distributions received previously under the Contract that are excluded from the recipient’s gross income. The taxable portion is taxed as ordinary income. For purposes of this rule, a pledge or assignment of a contract is treated as a payment received on account of a partial withdrawal of a Contract.
Amounts distributed from a Contract because of your death or the death of the Annuitant are generally treated as income to the recipient. If distributed in a lump sum, such payments are taxed in the same manner as if the Contract had been surrendered, and if distributed under an Annuity Option, they are taxed in the same manner as annuity payments. For Non-Qualified Contracts, all or a portion of the charges deducted from your Contract Value to pay advisory fees to a financial intermediary may be subject to federal and state income taxes and a 10% federal penalty tax. A tax-free partial exchange may become taxable if an advisory fee is paid from your Contract Value within 180 days of the partial exchange. Consult your tax adviser for advice concerning tax-free partial exchanges. Amounts distributed as loans are generally not taxable, as loans are only permitted for Contracts issued in connection with a retirement plan that is qualified under Section 403(b) of the Internal Revenue Code. Such loan amounts become taxable in the event of default. See “Loans.”
Surrenders. Upon a complete surrender, the receipt is taxable to the extent that the cash value of the Contract exceeds the investment in the Contract. The taxable portion of such payments will be taxed as ordinary income.
Annuity Payments. For fixed annuity payments, the taxable portion of each payment generally is determined by using a formula known as the “exclusion ratio,” which establishes the ratio that the investment in the Contract bears to the total expected amount of annuity payments for the term of the Contract. That ratio is then applied to each payment to determine the non-taxable portion of the payment. The remaining portion of each payment is taxed at ordinary income rates. For variable annuity payments, the taxable portion of each payment is determined by using a formula known as the “excludable amount,” which establishes the non-taxable portion of each payment. The non-taxable portion is a fixed dollar amount for each payment, determined by dividing the investment in the Contract by the number of payments to be made. The remainder of each variable annuity payment is taxable. Once the excludable portion of annuity payments to date equals the investment in the Contract, the balance of the annuity payments will be fully taxable.
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Penalty Tax on Certain Surrenders and Withdrawals. With respect to amounts withdrawn or distributed before the taxpayer reaches age 59½, a penalty tax is imposed equal to 10% of the portion of such amount which is includable in gross income. However, the penalty tax is not applicable to withdrawals: (i) made on or after the death of the owner (or where the owner is not an individual, the death of the “primary annuitant,” who is defined as the individual the events in whose life are of primary importance in affecting the timing and amount of the payout under the Contract); (ii) attributable to the taxpayer’s becoming totally disabled within the meaning of Code Section 72(m)(7); (iii) which are part of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the taxpayer, or the joint lives (or joint life expectancies) of the taxpayer and his or her beneficiary; (iv) from certain qualified plans; (v) under a so-called qualified funding asset (as defined in Code Section 130(d)); (vi) under an immediate annuity contract; or (vii) which are purchased by an employer on termination of certain types of qualified plans and which are held by the employer until the employee separates from service.
If the penalty tax does not apply to a surrender or withdrawal as a result of the application of item (iii) above, and the series of payments are subsequently modified (other than by reason of death or disability), the tax for the first year in which the modification occurs will be increased by an amount (determined by the regulations) equal to the tax that would have been imposed but for item (iii) above, plus interest for the deferral period, if the modification takes place (a) before the close of the period which is five years from the date of the first payment and after the taxpayer attains age 59½, or (b) before the taxpayer reaches age 59½.
Partial Annuitization. If part of an annuity contract’s value is applied to an annuity option that provides payments for one or more lives and for a period of at least ten years, those payments may be taxed as annuity payments instead of withdrawals. None of the payment options under the Contract is intended to qualify for this “partial annuitization” treatment and, if you apply only part of the value of the Contract to a payment option, we will treat those payments as withdrawals for tax purposes.
Additional Considerations —
Distribution-at-Death Rules. In order to be treated as an annuity contract, a Non-Qualified contract must provide the following two distribution rules: (a) if any owner dies on or after the Annuity Start Date, and before the entire interest in the Contract has been distributed, the remainder of the owner’s interest will be distributed at least as quickly as the method in effect on the owner’s death; and (b) if any owner dies before the Annuity Start Date, the entire interest in the Contract must generally be distributed within five years after the date of death, or, if payable to a designated beneficiary, must be annuitized over the life of that designated beneficiary or over a period not extending beyond the life expectancy of that beneficiary, commencing within one year after the date of death of the owner. If the sole designated beneficiary is the spouse of the deceased owner, the contract (together with the deferral of tax on the accrued and future income thereunder) may be continued in the name of the spouse as owner.
The Contract provides that upon your death, a surviving spouse may have certain continuation rights that he or she may elect to exercise for the Contract’s death benefit and any joint-life coverage under an optional living benefit. All Contract provisions relating to spousal continuation are available only to a person who meets the definition of "spouse" under federal law. The U.S. Supreme Court has held that same-sex marriages must be permitted under state law and that marriages recognized under state law will be recognized for federal law purposes. Domestic partnerships and civil unions that are not recognized as legal marriages under state law, however, will not be treated as marriages under federal law. Consult a tax adviser for more information on this subject.
Generally, for purposes of determining when distributions must begin under the foregoing rules, where an owner is not an individual, the primary annuitant is considered the owner. In that case, a change in the primary annuitant will be treated as the death of the owner. Finally, in the case of joint owners, the distribution-at-death rules will be applied by treating the death of the first owner as the one to be taken into account in determining generally when distributions must commence, unless the sole Designated Beneficiary is the deceased owner’s spouse.
Gift of Annuity Contracts. Generally, gifts of non-tax qualified Contracts prior to the Annuity Start Date will trigger tax on the gain on the Contract, with the donee getting a stepped-up basis for the amount included in the donor’s income. The 10% penalty tax and gift tax also may be applicable. This provision does not apply to transfers between spouses or incident to a divorce.
Contracts Owned by Non Natural Persons. If the Contract is held by a non-natural person (for example, a corporation) the income on that Contract (generally the increase in net surrender value less the Purchase Payments) is includable in taxable income each year. The rule does not apply where the Contract is acquired by the estate of a decedent, where the Contract is held by certain types of retirement plans, where the Contract is a qualified funding asset for structured settlements, where the Contract is purchased on behalf of an employee upon termination of a
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qualified plan, and in the case of an immediate annuity. An annuity contract held by a trust or other entity as agent for a natural person is considered held by a natural person.
Multiple Contract Rule. For purposes of determining the amount of any distribution under Code Section 72(e) (amounts not received as annuities) that is includable in gross income, all Non-Qualified deferred annuity contracts issued by the same insurer to the same contract owner during any calendar year are to be aggregated and treated as one contract. Thus, any amount received under any such contract prior to the contract’s Annuity Start Date, such as a partial surrender, dividend, or loan, will be taxable (and possibly subject to the 10% penalty tax) to the extent of the combined income in all such contracts.
In addition, the Treasury Department has broad regulatory authority in applying this provision to prevent avoidance of the purposes of this rule. It is possible that, under this authority, the Treasury Department may apply this rule to amounts that are paid as annuities (on and after the Annuity Start Date) under annuity contracts issued by the same company to the same owner during any calendar year. In this case, annuity payments could be fully taxable (and possibly subject to the 10% penalty tax) to the extent of the combined income in all such contracts and regardless of whether any amount would otherwise have been excluded from income because of the “exclusion ratio” under the contract.
Transfers, Assignments or Exchanges of a Contract. A transfer of ownership of a Contract, the designation of an Annuitant, Payee or other Beneficiary who is not also the Owner, the selection of certain Annuity Start Dates or the exchange of a Contract may result in certain tax consequences to the Owner that are not discussed herein. If contemplating any such transfer, assignment, selection or exchange, the Owner should contact a competent tax adviser with respect to the potential effects of such a transaction.
Qualified Plans — The Contract may be used with Qualified Plans that meet the requirements of Section 403(b), 408 or 408A of the Code. If you are purchasing the Contract as an investment vehicle for one of these Qualified Plans, you should consider that the Contract does not provide any additional tax advantage beyond that already available through the Qualified Plan. However, the Contract does offer features and benefits in addition to providing tax deferral that other investments may not offer, including death benefit protection for your beneficiaries and annuity options which guarantee income for life. You should consult with your financial professional as to whether the overall benefits and costs of the Contract are appropriate considering your circumstances.
The tax rules applicable to participants in such Qualified Plans vary according to the type of plan and the terms and conditions of the plan itself. No attempt is made herein to provide more than general information about the use of the Contract with the various types of Qualified Plans. These Qualified Plans may permit the purchase of the Contract to accumulate retirement savings under the plans. Adverse tax or other legal consequences to the plan, to the Participant or to both may result if this Contract is assigned or transferred to any individual as a means to provide benefit payments, unless the plan complies with all legal requirements applicable to such benefits prior to transfer of the Contract. Owners, Annuitants, and Beneficiaries are cautioned that the rights of any person to any benefits under such Qualified Plans may be subject to the terms and conditions of the plans themselves or limited by applicable law, regardless of the terms and conditions of the Contract issued in connection therewith. For example, the Company may accept beneficiary designations and payment instructions under the terms of the Contract without regard to any spousal consents that may be required under the plan or the Employee Retirement Income Security Act of 1974 (ERISA). Consequently, an Owner’s Beneficiary designation or elected payment option may not be enforceable.
The amounts that may be contributed to Qualified Plans are subject to limitations that vary depending on the type of plan. In addition, early distributions from most Qualified Plans may be subject to penalty taxes, or, for certain plans, could cause the plan to be disqualified. Furthermore, distributions from most Qualified Plans are subject to certain minimum distribution rules. Failure to comply with these rules could result in disqualification of the plan or subject the Owner or Beneficiary to penalty taxes. As a result, the minimum distribution rules may limit the availability of certain Annuity Options to certain Annuitants and their Beneficiaries. These requirements may not be incorporated into the Company’s Contract administration procedures. Owners, Participants and Beneficiaries are responsible for determining that contributions, distributions and other transactions with respect to the Contract comply with applicable law.
The following are brief descriptions of the various types of Qualified Plans and the use of the Contract therewith:
Section 403(b). Code Section 403(b) permits public school employees and employees of certain types of charitable, educational and scientific organizations specified in Section 501(c)(3) of the Code to purchase annuity contracts, and, subject to certain limitations, to exclude the amount of Purchase Payments from gross income for tax purposes. The Contract may be purchased in connection with a Section 403(b) annuity plan.
Section 403(b) annuities must generally be provided under a plan which meets certain minimum participation, coverage, and nondiscrimination requirements. Each employee’s interest in a retirement plan qualified under Code Section 403(b) must generally be distributed or begin to be distributed not later than April 1 of the calendar year
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following the later of the calendar year in which the employee reaches their “applicable age” as defined in the Code or retires (“required beginning date”). If the employee attains age 72 after 2022 and age 73 before 2033, their applicable age is 73. If employee attains age 74 after 2032, their applicable age is 75. Periodic distributions must not extend beyond the life of the employee or the lives of the employee and a designated beneficiary (or over a period extending beyond the life expectancy of the employee or the joint life expectancy of the employee and a designated beneficiary).
If an employee dies before reaching his or her required beginning date, the employee’s entire interest in the plan must generally be distributed beginning before the close of the calendar year following the year of the employee’s death to a designated beneficiary over the life of the beneficiary (or over a period not extending beyond the life expectancy of the beneficiary). If the designated beneficiary is the employee’s surviving spouse, distributions may be delayed until the employee would have reached their applicable age (defined above). Please note that for employees who die on or after January 1, 2020, most non-spouse Beneficiaries will no longer be able to satisfy these rules by “stretching” payouts over their lifetimes. Instead, those Beneficiaries will have to take their post-death distributions within ten years. Certain exceptions apply to “eligible designated beneficiaries,” which include disabled and chronically ill individuals, individuals who are not more than ten years younger than the deceased individual, and children who have not reached the age of majority. Not all Annuity Options will satisfy minimum distribution rules for every designated beneficiary. Employees and Beneficiaries should consult a tax adviser if they may be affected by these changes.
If an employee dies after reaching his or her required beginning date, the employee’s interest in the plan must generally be distributed at least as rapidly as under the method of distribution in effect at the time of the employee’s death.
A Section 403(b) annuity contract may be purchased with employer contributions, employee contributions or a combination of both. An employee’s rights under a Section 403(b) contract attributable to employee contributions must be nonforfeitable. The contribution limit is similar to the limits on contributions to qualified retirement plans and depends upon, among other things, whether the annuity contract is purchased with employer or employee contributions.
Amounts used to purchase Section 403(b) annuities generally are excludable from the taxable income of the employee. As a result, all distributions from such annuities are normally taxable in full as ordinary income to the employee. However, employee salary reduction contributions can be made to certain 403(b) annuities on an after-tax basis. See Roth 403(b) below.
A Section 403(b) annuity contract must prohibit the distribution of employee contributions (including earnings thereon) until the employee: (i) attains age 59½, (ii) has a severance from employment; (iii) dies; (iv) becomes disabled; or (v) incurs a financial hardship. Additional restrictions may be imposed by a particular 403(b) Plan or program.
Distributions from a Section 403(b) annuity contract may be eligible for a tax-free rollover to another eligible retirement plan, including an individual retirement account or annuity (IRA). See “Rollovers.”
If your Contract was issued pursuant to a 403(b) plan, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders or transfers you request comply with applicable tax requirements and to decline requests that are not in compliance. By requesting a surrender or transfer, you consent to the sharing of confidential information about you, the Contract, and transactions under the Contract and any other 403(b) contracts or accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or recordkeeper, and other product providers.
Section 408. Traditional Individual Retirement Annuities. Section 408 of the Code permits eligible individuals to establish individual retirement programs through the purchase of Individual Retirement Annuities (“traditional IRAs”). The Contract may be purchased as an IRA. The IRAs described in this section are called “traditional IRAs” to distinguish them from “Roth IRAs,” which are described below.
IRAs are subject to limitations on the amount that may be contributed, the persons who may be eligible and on the time distributions must commence. Depending upon the circumstances of the individual, contributions to a traditional IRA may be made on a deductible or non-deductible basis. IRAs may not be transferred, sold, assigned, discounted or pledged as collateral for a loan or other obligation. The annual premium for an IRA may not be fixed and may not exceed (except in the case of a rollover contribution) the lesser of (i) $7,000 (for 2024) or (ii) 100% of the individual’s taxable compensation (for 2024).
Any refund of premium must be applied to the payment of future premiums or the purchase of additional benefits. If an individual is age 50 or over, the individual may make an additional catch-up contribution to a traditional IRA of $1,000 (indexed for inflation beginning in 2024) for each tax year. However, if the individual is covered by an employer-sponsored retirement plan, the amount of IRA contributions the individual may deduct in a year may be reduced or eliminated based on the individual’s adjusted gross income for the year ($123,000 to $143,000 for a
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married couple filing a joint return and $77,000 to $87,000 for a single taxpayer in 2024). If the individual’s spouse is covered by an employer-sponsored retirement plan but the individual is not, the individual may be able to deduct those contributions to a traditional IRA; however, the deduction will be reduced or eliminated if the adjusted gross income on a joint return is between $230,000 to $240,000 (for 2024). Non-deductible contributions to traditional IRAs must be reported to the IRS in the year made on Form 8606.
Sale of the Contract for use with IRAs may be subject to special requirements imposed by the Internal Revenue Service. Purchasers of the Contract for such purposes will be provided with such supplementary information as may be required by the Internal Revenue Service or other appropriate agency and will have the right to revoke the Contract under certain circumstances. See the IRA Disclosure Statement that accompanies this Prospectus.
In general, traditional IRAs are subject to minimum distribution requirements similar to those applicable to retirement plans qualified under Section 403(b) of the Code; however, the required beginning date for traditional IRAs is generally the April 1 following the calendar year that the contract owner reaches their applicable age (as defined above)—the contract owner’s retirement date, if any, will not affect his or her required beginning date. See “Section 403(b).” Distributions from IRAs are generally taxed under Code Section 72. Under these rules, a portion of each distribution may be excludable from income. The amount excludable from the individual’s income is the amount of the distribution that bears the same ratio as the individual’s nondeductible contributions bears to the expected return under the IRA.
Distributions from a traditional IRA may be eligible for a tax-free rollover to any kind of eligible retirement plan, including another traditional IRA. In certain cases, a distribution of non-deductible contributions or other after-tax amounts from a traditional IRA may be eligible to be rolled over to another traditional IRA. See “Rollovers.”
The IRS has not reviewed the Contract for qualification as an IRA, and has not addressed in a ruling of general applicability whether a death benefit provision such as the provision in the Contract comports with IRA qualification requirements.
Section 408A. Roth IRAs. Section 408A of the Code permits eligible individuals to establish a Roth IRA. The Contract may be purchased as a Roth IRA. Regular contributions may be made to a Roth IRA up to the same contribution limits that apply to traditional IRA contributions. The regular contribution limits are phased out for taxpayers with $146,000 to $161,000 in adjusted gross income for 2024 ($230,000 to $240,000 for married filing joint returns). Also the taxable balance in a traditional IRA may be rolled over or converted into a Roth IRA. Distributions from Roth 403(b) plans can be rolled over to a Roth IRA regardless of income.
Regular contributions to a Roth IRA are not deductible, and rollovers and conversions from other retirement plans are taxable when completed, but withdrawals that meet certain requirements are not subject to federal income tax on either the original contributions or any earnings. However, once aggregate distributions exceed contributions to the Roth IRA, income tax and a 10% penalty tax may apply to distributions made (1) before 59½ (subject to certain exceptions) or (2) during the five taxable years starting with the year in which the first contribution is made to any Roth IRA. A 10% penalty tax may apply to amounts attributable to a conversion from an IRA if they are distributed during the five taxable years beginning with the year in which the conversion was made. Rollovers of Roth contributions were already taxed when made and are not generally subject to tax when rolled over to a Roth IRA. Sale of the Contract for use with Roth IRAs may be subject to special requirements imposed by the Internal Revenue Service. Purchasers of the Contract for such purposes will be provided with such supplementary information as may be required by the Internal Revenue Service or other appropriate agency, and will have the right to revoke the Contract under certain requirements. Unlike a traditional IRA, Roth IRAs are not subject to minimum required distribution rules during the Contract Owner’s lifetime. Generally, however, the amount remaining in a Roth IRA after the Contract Owner’s death must begin to be distributed by the end of the first calendar year after death, and made in amounts that satisfy IRS required minimum distribution regulations. Beginning with deaths occurring on or after January 1, 2020, subject to certain exceptions, most non-spouse beneficiaries must complete distributions within ten years of the Owner’s death.
Rollovers. A “rollover” is the tax-free transfer of a distribution from one “eligible retirement plan” to another. Distributions which are rolled over are not included in the employee’s gross income until some future time.
If any portion of the balance to the credit of an employee in a Section 403(b) or other eligible retirement plan (other than Roth sources) is paid in an “eligible rollover distribution” and the payee transfers any portion of the amount received to an “eligible retirement plan,” then the amount so transferred is not includable in income. Also, pre-tax distributions from an IRA may be rolled over to another kind of eligible retirement plan. An “eligible rollover distribution” generally means any distribution that is not one of a series of periodic payments made for the life of the distributee or for a specified period of at least ten years. In addition, a required minimum distribution, death distributions (except to a surviving spouse) and certain corrective distributions, will not qualify as an eligible rollover distribution. A rollover must be made directly between plans or indirectly within 60 days after receipt of the distribution.
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For an employee (or employee's spouse or former spouse as beneficiary or alternate payee), an “eligible retirement plan” will be another Section 403(b) plan, a qualified retirement plan, or a traditional individual retirement account or annuity described in Code Section 408. For a non-spouse beneficiary, an “eligible retirement plan” is an IRA established by the direct rollover. For a Roth 403(b) account, a rollover, including a direct rollover, can only be made to a Roth IRA or to the same kind of account in another plan (such as a Roth 403(b) to a Roth 403(b), but not a Roth 403(b) to a Roth 401(k)) or to a Roth IRA. Anyone attempting to rollover Roth 403(b) contributions should seek competent tax advice. Additionally, a rollover for a Roth IRA can only be made to another Roth IRA.
A Section 403(b) plan must provide a participant receiving an eligible rollover distribution, the option to have the distribution transferred directly to another eligible retirement plan.
Only one indirect rollover may be made from an IRA, including traditional IRAs, Roth IRAs, SIMPLE-IRAs and SEP-IRAs, to another IRA in a 12-month period. The 12-month period begins on the date the IRA distribution is received. If a second indirect rollover is made during the 12-month period, the transaction may have adverse tax consequences. This rollover limitation does not apply to direct rollovers or a rollover between a retirement plan and an IRA.
Tax Penalties. Premature Distribution Tax. Distributions from a 403(b) plan or IRA before the participant reaches age 59½ are generally subject to an additional tax equal to 10% of the taxable portion of the distribution. The 10% penalty tax does not apply to distributions: (i) made on or after the death of the employee; (ii) attributable to the employee’s disability; (iii) which are part of a series of substantially equal periodic payments made (at least annually) for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of the employee and a designated beneficiary and (except for IRAs) which begin after the employee terminates employment; (iv) made to an employee after termination of employment after reaching age 55; (v) made to pay for certain medical expenses; (vi) that are exempt withdrawals of an excess contribution; (vii) that are rolled over or transferred in accordance with Code requirements; (viii) made as a qualified reservist distribution; (ix) that are transferred pursuant to a decree of divorce or separate maintenance or written instrument incident to such a decree; (x) made in connection with the birth or adoption of a child, in limited circumstances; or (xi) made to terminally ill employees.
The exception to the 10% penalty tax described in item (iv) above is not applicable to IRAs. However, distributions from an IRA to unemployed individuals can be made without application of the 10% penalty tax to pay health insurance premiums in certain cases. There are two additional exceptions to the 10% penalty tax on withdrawals from IRAs before age 59½: withdrawals made to pay “qualified” higher education expenses and withdrawals made to pay certain “eligible first-time home buyer expenses.” There may be additional exceptions to the 10% penalty tax (e.g., certain disaster relief distributions).
Minimum Distribution Tax. If the amount distributed from a Qualified Contract is less than the minimum required distribution for the year, the Participant is subject to a 25% tax on the amount that was not properly distributed, which is reduced to 10% if corrected within a two year correction period. The value of any enhanced death benefits or other optional Contract provisions such as the Guaranteed Minimum Income Benefit may need to be taken into account when calculating the minimum required distribution. Consult a tax advisor.
Withholding. Periodic distributions (e.g., annuities and installment payments) from a Qualified Contract that will last for a period of ten or more years are generally subject to voluntary income tax withholding. The amount withheld on such periodic distributions is determined at the rate applicable to wages. The recipient of a periodic distribution may generally elect not to have withholding apply.
Eligible rollover distributions from a Qualified Plan (other than IRAs) are generally subject to mandatory 20% income tax withholding. However, no withholding is imposed if the distribution is transferred directly to another eligible retirement plan. Nonperiodic distributions from an IRA are subject to income tax withholding at a flat 10% rate. The recipient of such a distribution may elect not to have withholding apply.
The above description of the federal income tax consequences of the different types of Qualified Plans which may be funded by the Contract offered by this Prospectus is only a brief summary and is not intended as tax advice. The rules governing the provisions of Qualified Plans are extremely complex and often difficult to comprehend. Anything less than full compliance with the applicable rules, all of which are subject to change, may have adverse tax consequences. A prospective Owner considering adoption of a Qualified Plan and purchase of a Contract in connection therewith should first consult a qualified and competent tax adviser, with regard to the suitability of the Contract as an investment vehicle for the Qualified Plan.
Other Tax Considerations —
Federal Estate, Gift, and Generation-Skipping Transfer Taxes. While no attempt is being made to discuss in detail the Federal estate tax implications of the Contract, a purchaser should keep in mind that the value of an annuity contract owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in
57
the decedent’s gross estate. Depending on the terms of the annuity contract, the value of the annuity included in the gross estate may be the value of the lump sum payment payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning advisor for more information.
Under certain circumstances, the Code may impose a “generation skipping transfer tax” (“GST”) when all or part of an annuity contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Owner. Regulations issued under the Code may require the Company to deduct the tax from your Contract, or from any applicable payment, and pay it directly to the IRS.
The potential application of these taxes underscores the importance of seeking guidance from a qualified adviser to help ensure that your estate plan adequately addresses your needs and those of your beneficiaries under all possible scenarios.
Annuity Purchases by Nonresident Aliens and Foreign Corporations. The discussion above provides general information regarding U.S. federal income tax consequences to annuity purchasers that are U.S. citizens or residents. Purchasers that are not U.S. citizens or residents will generally be subject to U.S. federal withholding tax on taxable distributions from annuity contracts at a 30% rate, unless a lower treaty rate applies. In addition, such purchasers may be subject to state and/or municipal taxes and taxes that may be imposed by the purchaser’s country of citizenship or residence. Additional withholding may occur with respect to entity purchasers (including foreign corporations, partnerships, and trusts) that are not U.S. residents. Prospective purchasers are advised to consult with a qualified tax adviser regarding U.S. state, and foreign taxation with respect to an annuity contract purchase.
Foreign Tax Credits. We may benefit from any foreign tax credits attributable to taxes paid by certain Funds to foreign jurisdictions to the extent permitted under Federal tax law.
Medicare Tax. Distributions from non-qualified annuity contracts are considered “investment income” for purposes of the Medicare tax on investment income. Thus, in certain circumstances, a 3.8% tax may be applied to some or all of the taxable portion of distributions (e.g. earnings) to individuals whose income exceeds certain threshold amounts. Please consult a tax advisor for more information.
Possible Tax Changes. From time to time, legislation has been proposed that would have adversely modified the federal taxation of certain annuities. There is always the possibility that the tax treatment of annuities could change by legislation or other means (such as IRS regulations, revenue rulings, and judicial decisions). Moreover, although unlikely, it is also possible that any legislative change could be retroactive (that is, effective prior to the date of such change). Consult a tax adviser with respect to legislative developments and their effect on the Contract. We have the right to modify the Contract in response to legislative changes that could otherwise diminish the favorable tax treatment that Owners currently receive. We make no guarantee regarding the tax status of any Contract and do not intend the above discussion to be considered tax advice.
Other Information
Voting of Underlying Fund Shares — The Company is the legal owner of the shares of the Underlying Funds held by the Subaccounts. The Company will exercise voting rights attributable to the shares of each Underlying Fund held in the Subaccounts at any regular and special meetings of the shareholders of the Underlying Funds on matters requiring shareholder voting. In accordance with its view of presently applicable law, the Company will exercise its voting rights based on instructions received from persons having beneficial interest in corresponding Subaccounts. However, if the 1940 Act or any regulations thereunder should be amended, or if the present interpretation thereof should change, and as a result the Company determines that it is permitted to vote the shares of the Underlying Funds in its own right, it may elect to do so.
The person having the voting interest under a Contract is the Owner. Unless otherwise required by applicable law, the number of shares of a particular Underlying Fund as to which voting instructions may be given to the Company is determined by dividing your Contract Value in the corresponding Subaccount on a particular date by the net asset value per share of the Underlying Fund as of the same date. Fractional votes will be counted. The number of votes as to which voting instructions may be given will be determined as of the same date established by the Underlying Fund for determining shareholders eligible to vote at the meeting of the Underlying Fund. If required by the SEC, the Company reserves the right to determine in a different fashion the voting rights attributable to the shares of the Underlying Funds. Voting instructions may be cast in person or by proxy.
It is important that each Owner provide voting instructions to the Company because we vote all Underlying Fund shares proportionately in accordance with instructions received from Owners. This means that the Company will vote shares for which no timely voting instructions are received in the same proportion as those shares for which we do receive voting instructions. As a result, a small number of Owners may control the outcome of a vote. The Company will also exercise the voting rights from assets in each Subaccount that are not otherwise attributable to Owners, if
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any, in the same proportion as the voting instructions that are received in a timely manner for all Contracts participating in that Subaccount.
Changes to Investments — The Company reserves the right, subject to compliance with the law as then in effect, to make additions to, deletions from, or combinations of the securities that are held by the Separate Account or any Subaccount or that the Separate Account or any Subaccount may purchase. In addition, the Company reserves the right to substitute shares of any or all of the Underlying Funds in accordance with applicable law. In all cases, the Company will send you notice. For instance, the Company may seek to substitute shares of Underlying Funds should they no longer be available for investment, or if the Company’s management believes further investment in shares of any Underlying Fund should become inappropriate in view of the purposes of the Contract. The Company may substitute shares of an Underlying Fund with the shares of another Underlying Fund or the shares of a fund not currently offered under the Contract. Substituted fund shares may have higher fees and expenses. The Company may also purchase, through the Subaccount, other securities for other classes of contracts, or permit a conversion between classes of contracts on the basis of requests made by Owners. The Company further reserves the right to close any Subaccount to future allocations.
The Company also reserves the right to establish additional Subaccounts of the Separate Account that would invest in a new Underlying Fund or in shares of another investment company, a series thereof, or other suitable investment vehicle. The Company may establish new Subaccounts in its sole discretion, and will determine whether to make any new Subaccount available to existing Owners. The Company may also eliminate or combine one or more Subaccounts to all or only certain classes of Owners if, in its sole discretion, marketing, tax, or investment conditions so warrant.
Subject to compliance with applicable law, the Company may transfer assets to the General Account. The Company also reserves the right, subject to any required regulatory approvals, to transfer assets of the Separate Account or any Subaccount to another separate account or Subaccount.
In the event of any such substitution or change, the Company may, by appropriate endorsement, make such changes in these and other contracts as may be necessary or appropriate to reflect such substitution or change. If the Company believes it to be in the best interests of persons having voting rights under the Contract, the Separate Account may be operated as a management investment company under the 1940 Act or any other form permitted by law. The Separate Account may be deregistered under the 1940 Act in the event such registration is no longer required, or it may be combined with other separate accounts of the Company or an affiliate thereof. Subject to compliance with applicable law, the Company also may establish a committee, board, or other group to manage one or more aspects of the operation of the Separate Account.
Changes to Comply with Law and Amendments — The Company reserves the right, without the consent of Owners, to suspend sales of the Contract as presently offered and to make any change to the provisions of the Contract to comply with, or give Owners the benefit of, any federal or state statute, rule, or regulation, including but not limited to requirements for annuity contracts and retirement plans under the Internal Revenue Code and regulations thereunder or any state statute or regulation.
Reports to Owners — The Company will send you annually a statement setting forth a summary of the transactions that occurred during the year, and indicating the Contract Value as of the end of each year. In addition, the statement will indicate the allocation of Contract Value among the Fixed Account and the Subaccounts and any other information required by law. The Company will also send confirmations upon Purchase Payments, transfers, loans, loan repayments, and full and partial withdrawals. The Company may confirm certain transactions on a quarterly basis rather than at the time they occur. These transactions include purchases under an Automatic Investment Program, transfers under the Dollar Cost Averaging and Asset Reallocation Options, systematic withdrawals and annuity payments.
The shareholder reports for Underlying Funds available under your Contract are available online at https://dfinview.com/SecurityBenefit/TAHD/336277405?site=PFSBL and you will be notified by mail each time a report is posted. You may elect to receive any or all future reports in paper free of charge. You can inform the Company that you wish to receive a paper copy of a report, or to receive paper copies of all of your future shareholder reports, by calling 1-800-888-2461. Your election to receive reports in paper will apply to all Underlying Funds available under your Contract"
You may elect to receive all future reports in paper free of charge. You can inform the Company that you wish to continue receiving paper copies of your shareholder reports by calling 1-800-888-2461. Your election to receive reports in paper will apply to all Underlying Funds available under your Contract.
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Electronic Privileges — If the proper form has been completed, signed, and received at the Company’s Administrative Office, you may (1) request a transfer of Contract Value and make changes in your Purchase Payment allocation and to an existing Dollar Cost Averaging or Asset Reallocation Option by telephone; (2) request a transfer of Contract Value electronically via facsimile; and (3) request a transfer of Contract Value through the Company’s website. If you elect Electronic Privileges, you automatically authorize your financial representative to make transfers of Contract Value and changes in your Purchase Payment allocation or Dollar Cost Averaging or Asset Reallocation Option, on your behalf.
Any telephone or electronic device, whether it is the Company’s, yours, your service provider’s, or your registered representative’s, can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may delay or prevent the Company’s processing of your transfer request. Although we have taken precautions to limit these problems, we cannot promise complete reliability under all circumstances. If you are experiencing problems, you should make your transfer request by writing to our Administrative Office.
The Company has established procedures to confirm that instructions communicated by telephone are genuine and will not be liable for any losses due to fraudulent or unauthorized instructions, provided it complies with its procedures. The Company’s procedures require that any person requesting a transfer by telephone provide the account number and the Owner’s tax identification number and such instructions must be received on a recorded line. The Company reserves the right to deny any telephone transfer request. If all telephone lines are busy (which might occur, for example, during periods of substantial market fluctuations) or are otherwise unavailable, you may not be able to request transfers by telephone and would have to submit written requests.
By authorizing telephone transfers, you authorize the Company to accept and act upon telephonic instructions for transfers involving your Contract. There are risks associated with telephone transactions that do not occur if a written request is submitted. Anyone authorizing or making telephone requests bears those risks. You agree that neither the Company nor any of its affiliates nor any Underlying Fund, will be liable for any loss, damages, cost, or expense (including attorneys’ fees) arising out of any telephone requests, provided that the Company effects such request in accordance with its procedures. As a result of this policy on telephone requests, you bear the risk of loss arising from the telephone transfer privilege. The Company may discontinue, modify, or suspend the telephone transfer privilege at any time.
Legal Proceedings — The Company and its subsidiaries, like other life insurance companies, may be involved in lawsuits, including class action lawsuits. In some class action and other lawsuits involving insurers, substantial damages have been sought and/or material settlement payments have been made. Although the outcome of any litigation cannot be predicted with certainty, the Company believes that at the present time there are no legal proceedings pending or threatened to which the Company, the Separate Account, or SDL is a party that are reasonably likely to materially affect the Separate Account or the Company’s ability to meet its obligations under the Contract, or SDL’s ability to perform its contract with the Separate Account.
Sale of the Contract — The Company currently offers the Contract on a continuous basis. The Company anticipates continuing to offer the Contract but reserves the right to discontinue the offering.
Principal Underwriter. The Company has entered into a principal underwriting agreement with its affiliate, SDL, for the distribution and sale of the Contract. SDL’s home office is located at One Security Benefit Place, Topeka, Kansas 66636-0001. SDL, a wholly-owned subsidiary of Security Benefit Life Insurance Company, an affiliate of the Company, is registered as a broker-dealer with the SEC under the Securities Exchange Act of 1934, as amended, and is a member of FINRA.
SDL does not sell the Contract directly to purchasers. The Contract is offered to the public through SDL’s registered representatives, as well as through registered representatives of broker-dealers that have entered into selling agreements with SDL for the sale of the Contract (collectively, “Selling Broker-Dealers”). Registered representatives of SDL and of Selling Broker-Dealers must be licensed as insurance agents by New York insurance authorities and appointed as agents of the Company in order to sell the Contract. The Company pays commissions directly to SDL, as well as to Selling Broker-Dealers through SDL in connection with sales of the Contract. During fiscal years 2023, 2022, and 2021, the amounts paid to SDL in connection with all contracts sold through the Separate Account were $22,001, $53,664, and $114,514, respectively. SDL passes through commissions it receives either to the SDL registered representatives involved in the sales process or to the Selling Broker-Dealers for their sales of the Contract, as applicable. SDL does not retain any portion of commissions it receives as principal underwriter for the Contract. However, the Company (or an affiliate) pays some or all of SDL’s operating and other expenses, including the following sales expenses: compensation and bonuses for SDL’s management team, compensation and benefits for SDL’s registered representatives, advertising expenses, and other expenses of distributing the Contract. The Company does not pay commissions to financial intermediaries who receive advisory
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fees from Contract owners because such intermediaries receive compensation in connection with the Contract in the form of those advisory fees.
Selling Broker-Dealers. The Company pays commissions to SDL and to Selling Broker-Dealers in connection with the promotion and sale of the Contract according to one or more schedules. A portion of any payments made to Selling Broker-Dealers may be passed on to their registered representatives in accordance with their internal compensation programs. Commissions and other incentives or payments described below are not charged directly to Owners or the Separate Account. The Company uses its corporate assets to pay commissions and other costs of distributing the Contract. Commissions and other incentives or payments described below are not charged directly to Owners of the Separate Account. The Company intends to recoup commissions and other sales expenses through fees and charges deducted under the Contract (including any profit from the mortality and expense risk charge or other fees and charges imposed under the Contract) or from its General Account.
Compensation Paid to All Selling Broker-Dealers. The Company pays compensation as a percentage of initial and subsequent Purchase Payments at the time it receives them, as a percentage of Contract Value on an ongoing basis, or a combination of both. While the amount and timing of compensation may vary depending on the selling agreement, the Company does not expect compensation to exceed 6.5% annually of aggregate Purchase Payments (if compensation is paid as a percentage of Purchase Payments) and/or 1.0% annually of average Contract Value (if compensation is paid as a percentage of Contract Value). The Company also pays non-cash compensation in connection with the sale of the Contract, including conferences, seminars and trips (including travel, lodging and meals in connection therewith), entertainment, merchandise and other similar items, in compliance with applicable regulatory requirements.
The registered representative who sells you the Contract typically receives a portion of the compensation the Company pays to his or her Selling Broker-Dealer, depending on the agreement between the Selling Broker-Dealer and your registered representative and the Selling Broker-Dealer’s internal compensation program. These programs may include other types of cash and non-cash compensation and other benefits. Ask your registered representative for further information about what he or she and the Selling Broker-Dealer for whom he or she works receive in connection with your purchase of a Contract.
Additional Compensation Paid to Selected Selling Broker-Dealers. In addition to the commissions and non-cash compensation described above, the Company pays additional compensation to selected Selling Broker-Dealers. These payments include: (1) trail commissions or persistency payments, which are periodic payments based on contract values of the Company’s variable insurance contracts (including Contract Values of the Contract) or other persistency standards; (2) preferred status fees (which may be in the form of a higher percentage of ordinary commission) paid to obtain preferred treatment of the Contract in Selling Broker-Dealers’ marketing programs, including enhanced marketing services and increased access to their registered representatives; (3) one-time bonus payments for their participation in sales promotions with regard to the Contract; (4) periodic bonus payments calculated as a percentage of the average contract value of the Company’s variable insurance contracts (including the Contract) sold by the Selling Broker-Dealer during the calendar year of payment; (5) sponsorship of or reimbursement of industry conference fees paid to help defray the costs of sales conferences and educational seminars put on by the Selling Broker-Dealers; and (6) reimbursement of Selling Broker-Dealers for expenses incurred by the Selling Broker-Dealer or its registered representatives in connection with client seminars or similar prospecting activities conducted to promote sales of the Contract.
These additional compensation arrangements are not offered to all Selling Broker-Dealers and the terms of such arrangements and the payments made thereunder can differ substantially among Selling Broker-Dealers. The payments may be significant and may be calculated in different ways for different Selling Broker-Dealers. These arrangements are designed to specially encourage the sale of the Company’s products (and/or its affiliates’ products) by such Selling Broker-Dealers. The prospect of receiving, or the receipt of, additional compensation may provide Selling Broker-Dealers and/or their registered representatives with an incentive to favor sales of the Contract over other variable annuity contracts (or other investments) with respect to which a Selling Broker-Dealer does not receive additional compensation or receives lower levels of additional compensation. You may wish to take such payment arrangements into account when considering and evaluating any recommendation relating to the Contract. Ask your registered representative for further information about what he or she and the Selling Broker-Dealer for whom he or she works may receive in connection with your purchase of a Contract.
Additional Information
Registration Statement — A Registration Statement of which this Prospectus is a part has been filed with the SEC relating to the offering described in this Prospectus. This Prospectus does not include all the information included in the Registration Statement, certain portions of which, including the Statement of Additional Information,
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have been omitted pursuant to the rules and regulations of the SEC. The omitted information may be obtained at the SEC’s principal office in Washington, DC, upon payment of any of the SEC’s prescribed fees, and may also be obtained for free from the SEC’s web site (https://www.sec.gov). You may also obtain the Statement of Additional Information by writing the Company at its Administrative Office, P.O. Box 750497, Topeka, Kansas 66675-0497 or by calling 1-800-888-2461. The Statement of Additional Information is also available online at https://dfinview.com/SecurityBenefit/TAHD/336277405?site=PFSBL.
Financial Statements — You can find financial statements for First Security Benefit Life Insurance and Annuity Company of New York and Subsidiaries and the Separate Account in the Statement of Additional Information, which is available online at https://dfinview.com/SecurityBenefit/TAHD/336277405?site=PFSBL. To receive a copy of the Statement of Additional Information free of charge, call your investment professional or contact us at 1-800-888-2461.
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APPENDIX A
Underlying Funds Available Under the Contract
The following is a list of Underlying Funds available under the Contract. More information about the Underlying Funds is available in the Underlying Fund prospectuses, shareholder reports*, and other documents, which may be amended or updated from time to time, and can be found online at https://dfinview.com/SecurityBenefit/TAHD/336277405?site=PFSBL. You can view, download, and print copies of Underlying Fund documents at this website. You can also request this information at no cost by calling 1-800-888-2461 or by sending an email request to FSBLProspectusRequests@securitybenefit.com.
The current expenses and performance information below reflect the fees and expenses of the Underlying Funds, but do not reflect the other fees and expenses that your Contract may charge. Expenses would be higher and performance would be lower if these other charges were included. Each Underlying Fund’s past performance is not necessarily an indication of future performance. Updated performance information is available online at https://fsbl.com/annuities/securedesigns/.
*Due to changes in Underlying Fund report delivery requirements, effective on and after June 30, 2024, all Underlying Fund reports for your current investment allocation(s) will be printed and mailed to you.
Investment
Type
Fund
Adviser/Sub-Adviser
Current
Expenses1
Average Annual
Total Returns
(as of 12/31/2023)
1 Year
5 Year
10 Year
Mid Cap Value
AB Discovery Value – Class B
Adviser: AllianceBernstein L.P.
1.06%
16.86%
10.51%
7.29%
Global
Allocation
AB VPS Dynamic Asset Allocation – Class B
Adviser: AllianceBernstein L.P.
1.18%
13.48%
4.03%
3.22%
Balanced/Asset
Allocation
American Funds IS® Asset Allocation – Class 4
Adviser: Capital Research and Management Company
0.80%
14.02%
8.92%
6.98%
Global Bond
American Funds IS® Capital World Bond – Class 4
Adviser: Capital Research and Management Company
0.98%
4.89%
-0.56%
0.12%
Global Equity
American Funds IS® Global Growth – Class 4
Adviser: Capital Research and Management Company
1.02%
22.29%
13.36%
9.30%
Large Cap
Blend
American Funds IS® Growth-Income – Class 4
Adviser: Capital Research and Management Company
0.78%
25.82%
13.08%
10.63%
International
Equity
American Funds IS® International – Class 4
Adviser: Capital Research and Management Company
1.03%
15.56%
4.58%
3.15%
Emerging
Markets
American Funds IS® New World – Class 4
Adviser: Capital Research and Management Company
1.14%
15.67%
8.37%
4.43%
Large Cap
Value
BlackRock Equity Dividend V.I. – Class III
Adviser: BlackRock Advisors, LLC
1.12%
11.99%
11.27%
8.73%
Global
Allocation
BlackRock Global Allocation V.I. – Class III
Adviser: BlackRock Advisors, LLC
Sub-Adviser: BlackRock (Singapore) Limited; BlackRock
International Limited
1.14%
12.49%
7.39%
4.63%
High Yield Bond
BlackRock High Yield V.I. – Class III
Adviser: BlackRock Advisors, LLC
Sub-Adviser: BlackRock International Limited
0.90%
12.94%
5.49%
4.21%
Mid Cap Blend
BNY Mellon IP MidCap Stock – Service Class
Adviser: BNY Mellon Investment Adviser, Inc.
Sub-Adviser: Newton Investment Management North
America, LLC
1.12%
17.99%
10.42%
7.17%
A-1
Investment
Type
Fund
Adviser/Sub-Adviser
Current
Expenses1
Average Annual
Total Returns
(as of 12/31/2023)
1 Year
5 Year
10 Year
Small Cap
Blend
BNY Mellon IP Small Cap Stock Index – Service Class
Adviser: BNY Mellon Investment Adviser, Inc.
0.61%
15.39%
10.41%
8.04%
Specialty-Sector
BNY Mellon IP Technology Growth – Service Class
Adviser: BNY Mellon Investment Adviser, Inc.
Sub-Adviser: Newton Investment Management North
America, LLC
1.03%
59.00%
15.31%
12.94%
Large Cap
Blend
BNY Mellon VIF Appreciation – Service Class
Adviser: BNY Mellon Investment Adviser, Inc.
Sub-Adviser: Fayez Sarofim & Co., LLC
1.10%
20.67%
15.94%
10.81%
Large Cap
Growth
ClearBridge Variable Growth – Class II
Adviser: Franklin Templeton Fund Adviser, LLC
Sub-Adviser: ClearBridge Investments, LLC
1.10%
24.13%
8.05%
6.38%
Small Cap
Growth
ClearBridge Variable Small Cap Growth – Class I
Adviser: Franklin Templeton Fund Adviser, LLC
Sub-Adviser: ClearBridge Investments, LLC
0.80%
8.40%
9.56%
7.89%
Large Cap
Value
Fidelity® VIP Equity-Income – Service Class 2
Adviser: Fidelity Management & Research Company LLC
Sub-Adviser: FMR Investment Management (UK)
Limited; Fidelity Management & Research (Hong Kong)
Limited; Fidelity Management & Research (Japan)
Limited
0.72%
10.38%
12.01%
8.31%
Large Cap
Growth
Fidelity® VIP Growth & Income – Service Class 2
Adviser: Fidelity Management & Research Company LLC
Sub-Adviser: FMR Investment Management (UK)
Limited; Fidelity Management & Research (Hong Kong)
Limited; Fidelity Management & Research (Japan)
Limited
0.74%
18.41%
14.50%
10.00%
Large Cap
Growth
Fidelity® VIP Growth Opportunities – Service Class 2
Adviser: Fidelity Management & Research Company LLC
Sub-Adviser: FMR Investment Management (UK)
Limited; Fidelity Management & Research (Hong Kong)
Limited; Fidelity Management & Research (Japan)
Limited
0.84%
45.30%
18.79%
15.44%
High Yield Bond
Fidelity® VIP High Income – Service Class 2
Adviser: Fidelity Management & Research Company LLC
Sub-Adviser: FMR Investment Management (UK)
Limited; Fidelity Management & Research (Hong Kong)
Limited; Fidelity Management & Research (Japan)
Limited
1.02%
10.24%
3.60%
3.14%
International
Equity
Fidelity® VIP Overseas – Service Class 2
Adviser: Fidelity Management & Research Company LLC
Sub-Adviser: FMR Investment Management (UK)
Limited; Fidelity Management & Research (Hong Kong)
Limited; Fidelity Management & Research (Japan)
Limited; FIL Investment Advisors; FIL Investment
Advisors (UK) Limited
0.98%
20.22%
9.71%
4.65%
Balanced/Asset
Allocation
Franklin Allocation VIP Fund – Class 4
Adviser: Franklin Advisers, Inc.
0.93%
14.62%
7.44%
4.64%
A-2
Investment
Type
Fund
Adviser/Sub-Adviser
Current
Expenses1
Average Annual
Total Returns
(as of 12/31/2023)
1 Year
5 Year
10 Year
Balanced/Asset
Allocation
Franklin Income VIP Fund – Class 2
Adviser: Franklin Advisers, Inc.
0.72%
8.62%
6.98%
5.01%
Global Equity
Franklin Mutual Global Discovery VIP Fund – Class 2
Adviser: Franklin Mutual Advisers, LLC
1.15%
20.31%
10.16%
5.98%
Small Cap
Value
Franklin Small Cap Value VIP Fund – Class 2
Adviser: Franklin Mutual Advisers, LLC
0.92%
12.75%
11.06%
7.04%
Multi-Sector
Bond
Franklin Strategic Income VIP Fund – Class 2
Adviser: Franklin Advisers, Inc.
1.14%
8.18%
1.96%
1.77%
Multi Cap Value
Guggenheim VIF All Cap Value
Adviser: Security Investors, LLC
1.14%
8.52%
11.41%
8.28%
Specialty
Guggenheim VIF Alpha Opportunity
Adviser: Security Investors, LLC
4.44%
8.38%
1.99%
2.09%
Floating Rate
Bond
Guggenheim VIF Floating Rate Strategies
Adviser: Guggenheim Partners Investment Management,
LLC
1.27%
11.12%
3.98%
3.40%
Specialty
Guggenheim VIF Global Managed Futures Strategy
Adviser: Security Investors, LLC
2.19%
3.80%
5.28%
1.87%
High Yield Bond
Guggenheim VIF High Yield
Adviser: Security Investors, LLC
1.34%
12.02%
4.50%
3.92%
Large Cap
Value
Guggenheim VIF Large Cap Value
Adviser: Security Investors, LLC
1.02%
9.27%
11.27%
8.47%
Specialty
Guggenheim VIF Long Short Equity
Adviser: Security Investors, LLC
1.92%
12.75%
5.76%
3.32%
Balanced/Asset
Allocation
Guggenheim VIF Managed Asset Allocation
Adviser: Security Investors, LLC
1.07%
14.12%
7.68%
6.06%
Specialty
Guggenheim VIF Multi-Hedge Strategies
Adviser: Security Investors, LLC
1.82%
4.37%
4.21%
2.52%
Small Cap
Value
Guggenheim VIF Small Cap Value
Adviser: Security Investors, LLC
1.25%
10.29%
10.21%
5.55%
Mid Cap Value
Guggenheim VIF SMid Cap Value
Adviser: Security Investors, LLC
1.15%
9.73%
11.98%
7.59%
Large Cap
Blend
Guggenheim VIF StylePlus Large Core
Adviser: Security Investors, LLC
1.45%
26.90%
14.83%
11.72%
Large Cap
Growth
Guggenheim VIF StylePlus Large Growth
Adviser: Security Investors, LLC
1.64%
39.91%
18.00%
14.25%
Mid Cap Growth
Guggenheim VIF StylePlus Mid Growth
Adviser: Security Investors, LLC
1.48%
26.41%
12.72%
9.97%
Small Cap
Growth
Guggenheim VIF StylePlus Small Growth
Adviser: Security Investors, LLC
1.77%
21.01%
9.41%
7.68%
Intermediate
Term Bond
Guggenheim VIF Total Return Bond
Adviser: Security Investors, LLC
1.04%
6.95%
1.28%
3.00%
A-3
Investment
Type
Fund
Adviser/Sub-Adviser
Current
Expenses1
Average Annual
Total Returns
(as of 12/31/2023)
1 Year
5 Year
10 Year
Global Equity
Guggenheim VIF World Equity Income
Adviser: Security Investors, LLC
1.14%
12.28%
9.97%
6.94%
Mid Cap Value
Invesco V.I. American Value – Series II
Adviser: Invesco Advisers, Inc.
1.14%
15.29%
12.45%
6.98%
Large Cap
Value
Invesco V.I. Comstock – Series II
Adviser: Invesco Advisers, Inc.
1.00%
12.10%
13.20%
8.65%
Intermediate
Core-Plus Bond
Invesco V.I. Core Plus Bond – Series II
Adviser: Invesco Advisers, Inc.
0.98%
5.85%
1.64%
2.47%
Mid Cap Growth
Invesco V.I. Discovery Mid Cap Growth – Series II
Adviser: Invesco Advisers, Inc.
1.12%
12.85%
12.47%
9.52%
Balanced/Asset
Allocation
Invesco V.I. Equity and Income – Series II
Adviser: Invesco Advisers, Inc.
0.82%
10.24%
9.64%
6.78%
International
Equity
Invesco V.I. EQV International Equity – Series II
Adviser: Invesco Advisers, Inc.
1.15%
17.86%
8.15%
4.07%
Global Equity
Invesco V.I. Global – Series II
Adviser: Invesco Advisers, Inc.
1.07%
34.45%
12.02%
8.21%
Specialty-Sector
Invesco V.I. Global Real Estate – Series I
Adviser: Invesco Advisers, Inc.
Sub-Adviser: Invesco Asset Management Limited
1.02%
9.05%
2.11%
3.10%
Money Market
Invesco V.I. Government Money Market – Series II
Adviser: Invesco Advisers, Inc.
0.61%
4.60%
1.53%
0.93%
Government
Bond
Invesco V.I. Government Securities – Series II
Adviser: Invesco Advisers, Inc.
0.94%
4.46%
0.42%
0.90%
Specialty-Sector
Invesco V.I. Health Care – Series I
Adviser: Invesco Advisers, Inc.
0.98%
3.02%
8.75%
6.87%
Mid Cap Blend
Invesco V.I. Main Street Mid Cap Fund® – Series II
Adviser: Invesco Advisers, Inc.
1.19%
14.14%
10.32%
6.45%
Small Cap
Blend
Invesco V.I. Main Street Small Cap Fund® – Series II
Adviser: Invesco Advisers, Inc.
1.13%
17.82%
12.79%
8.66%
Mid Cap Growth
Janus Henderson VIT Enterprise – Service Class
Adviser: Janus Henderson Investors US LLC
0.97%
17.78%
13.14%
11.82%
Large Cap
Growth
Janus Henderson VIT Research – Service Class
Adviser: Janus Henderson Investors US LLC
0.82%
42.81%
16.54%
12.21%
Multi-Sector
Bond
Lord Abbett Series Bond-Debenture VC – Class VC
Adviser: Lord, Abbett & Co. LLC
0.96%
6.55%
3.14%
3.49%
Small Cap
Growth
Lord Abbett Series Developing Growth VC – Class VC2
Adviser: Lord, Abbett & Co. LLC
1.25%
8.17%
8.90%
6.82%
Mid Cap Value
LVIP American Century Mid Cap Value – Service Class
Adviser: Lincoln Financial Investments Corporation
Sub-Adviser: American Century Investment
Management, Inc.
1.02%
6.03%
10.90%
8.61%
A-4
Investment
Type
Fund
Adviser/Sub-Adviser
Current
Expenses1
Average Annual
Total Returns
(as of 12/31/2023)
1 Year
5 Year
10 Year
Large Cap
Growth
LVIP American Century Ultra – Service Class
Adviser: Lincoln Financial Investments Corporation
Sub-Adviser: American Century Investment
Management, Inc.
0.94%
43.27%
19.07%
14.47%
Large Cap
Value
LVIP American Century Value – Service Class
Adviser: Lincoln Financial Investments Corporation
Sub-Adviser: American Century Investment
Management, Inc.
0.89%
9.02%
11.71%
8.36%
Intermediate
Core Bond
LVIP JPMorgan Core Bond – Service Class
Adviser: Lincoln Financial Investments Corporation
Sub-Adviser: J.P. Morgan Investment Management, Inc.
0.74%
5.66%
1.04%
1.56%
Global
Allocation
Macquarie VIP Asset Strategy - Service Class
Adviser: Delaware Management Company
Sub-Adviser: Macquarie Investment Management Austria
Kapitalanlage AG; Macquarie Investment Management
Europe Limited; Macquarie Investment Management
Global Limited
1.01%
13.90%
8.27%
3.48%
International
Equity
MFS® VIT II Research International – Service Class
Adviser: Massachusetts Financial Services Company
1.21%
12.83%
8.23%
3.89%
Balanced/Asset
Allocation
MFS® VIT Total Return – Service Class
Adviser: Massachusetts Financial Services Company
0.95%
10.22%
8.27%
6.27%
Specialty-Sector
MFS® VIT Utilities – Service Class
Adviser: Massachusetts Financial Services Company
1.05%
-2.33%
8.05%
6.13%
Emerging
Markets
Morgan Stanley VIF Emerging Markets Equity – Class II
Adviser: Morgan Stanley Investment Management, Inc.
Sub-Adviser: Morgan Stanley Investment Management
Company
1.50%
11.96%
3.36%
1.79%
Asset
Allocation/
Lifestyle
Morningstar Aggressive Growth ETF Asset Allocation
Portfolio – Class II
Adviser: ALPS Advisors, Inc.
Sub-Adviser: Morningstar Investment Management LLC
0.90%
16.88%
10.04%
7.06%
Asset
Allocation/
Lifestyle
Morningstar Balanced ETF Asset Allocation Portfolio –
Class II
Adviser: ALPS Advisors, Inc.
Sub-Adviser: Morningstar Investment Management LLC
0.88%
12.82%
6.68%
4.99%
Asset
Allocation/
Lifestyle
Morningstar Conservative ETF Asset Allocation Portfolio
– Class II
Adviser: ALPS Advisors, Inc.
Sub-Adviser: Morningstar Investment Management LLC
0.98%
7.84%
2.56%
2.25%
Asset
Allocation/
Lifestyle
Morningstar Growth ETF Asset Allocation Portfolio –
Class II
Adviser: ALPS Advisors, Inc.
Sub-Adviser: Morningstar Investment Management LLC
0.88%
15.27%
8.64%
6.20%
Asset
Allocation/
Lifestyle
Morningstar Income and Growth ETF Asset Allocation
Portfolio – Class II
Adviser: ALPS Advisors, Inc.
Sub-Adviser: Morningstar Investment Management LLC
0.92%
10.59%
4.74%
3.67%
A-5
Investment
Type
Fund
Adviser/Sub-Adviser
Current
Expenses1
Average Annual
Total Returns
(as of 12/31/2023)
1 Year
5 Year
10 Year
Specialty
Neuberger Berman AMT Sustainable Equity – Class S
Adviser: Neuberger Berman Investment Advisers LLC
1.16%
26.57%
13.69%
9.74%
Specialty
PIMCO VIT All Asset – Administrative Class
Adviser: Pacific Investment Management Company LLC
Sub-Adviser: Research Affiliates LLC
2.28%
8.14%
6.02%
4.04%
Specialty-Sector
PIMCO VIT CommodityRealReturn Strategy – Adminis-
trative Class
Adviser: Pacific Investment Management Company LLC
1.64%
-7.85%
8.55%
-0.80%
Emerging
Markets Bond
PIMCO VIT Emerging Markets Bond – Advisor Class
Adviser: Pacific Investment Management Company LLC
1.37%
11.00%
2.14%
2.67%
International
Bond
PIMCO VIT International Bond Portfolio (U.S.
Dollar-Hedged) – Administrative Class
Adviser: Pacific Investment Management Company LLC
1.28%
9.02%
1.64%
3.06%
Short Term
Bond
PIMCO VIT Low Duration – Administrative Class
Adviser: Pacific Investment Management Company LLC
0.69%
4.97%
0.99%
0.92%
Inflation-
Protected Bond
PIMCO VIT Real Return – Administrative Class
Adviser: Pacific Investment Management Company LLC
0.84%
3.67%
3.16%
2.25%
Intermediate
Term Bond
PIMCO VIT Total Return – Advisor Class
Adviser: Pacific Investment Management Company LLC
0.85%
5.83%
0.98%
1.60%
Small Cap
Value
Putnam VT Small Cap Value – Class IB
Adviser: Putnam Investment Management, LLC
Sub-Adviser: Putnam Investments Limited
1.03%
23.75%
14.17%
7.82%
Small Cap
Blend
Royce Micro-Cap – Investment Class
Adviser: Royce & Associates, LP
1.24%
19.31%
12.80%
5.72%
Specialty-Sector
T. Rowe Price Health Sciences – Class II
Adviser: T. Rowe Price Associates, Inc.
1.11%
2.68%
10.96%
11.03%
Emerging
Markets
Templeton Developing Markets VIP Fund – Class 2
Adviser: Templeton Asset Management Ltd
Sub-Adviser: Franklin Templeton Investment
Management Limited
1.36%
12.62%
4.22%
2.32%
Global Bond
Templeton Global Bond VIP Fund – Class 2
Adviser: Franklin Advisers, Inc.
0.77%
2.88%
-2.13%
-0.66%
High Yield Bond
Western Asset Variable Global High Yield Bond – Class
II
Adviser: Franklin Templeton Fund Adviser, LLC
Sub-Adviser: Western Asset Management Company,
LLC; Western Asset Management Company Limited
(London); Western Asset Management Company Pte.
Ltd. (Singapore)
1.08%
9.96%
3.17%
2.63%
1
Certain Investment Portfolios and their investment advisers have entered into temporary expense reimbursement and/or fee waivers. Please
see the Investment Portfolios’ prospectuses for additional information regarding these arrangements
2
This fund is no longer available for new transfers.
A-6
Optional Rider Investment Restrictions
If you have elected one of the optional riders listed in the table below, your Contract is subject to investment allocation restrictions. Depending on the optional riders you choose, you may not be able to invest in certain Underlying Funds or the Fixed Account. In addition, other investment restrictions may apply, as shown below.
Riders No Longer Available
Rider
Investment Restriction
Investment Allocation Impact on Crediting Rate
Guaranteed Minimum Income
Benefit at 5%
N/A
The Company will credit a maximum rate of 4% for amounts
allocated to the Invesco V.I. Government Money Market, the
Fixed Account and the Loan Account. All other investments will
be credited at 5%.
A-7
APPENDIX B
Riders No Longer Available – Available for Purchase Only Prior to February 1, 2010
Guaranteed Minimum Income Benefit — (This rider was available for purchase ONLY prior to
February 1, 2010) — This rider makes available a minimum amount for the purchase of a fixed Annuity (“Minimum Income Benefit”). The Minimum Income Benefit is equal to Purchase Payments and any Credit Enhancements and Bonus Credits, net of any premium tax, less an adjustment for withdrawals, increased at an annual effective rate of interest of 3% or 5%, as elected in the application. (If you elected the Guaranteed Minimum Income Benefit at 5%, please note that the Company will credit a maximum rate of 4% for amounts allocated to the Invesco V.I. Government Money Market, the Fixed Account and the Loan Account; however you will still pay the Rider charge applicable to the 5% rate.) Any amounts allocated to the Loan Account, however, will only earn the Guaranteed Rate.
In crediting interest, the Company takes into account the timing of when each Purchase Payment and withdrawal occurred and accrues such interest until the earlier of: (1) the Annuity Start Date, or (2) the Contract anniversary following the oldest Annuitant’s 80th birthday. In the event of a withdrawal, the Minimum Income Benefit is reduced as of the date of the withdrawal by a percentage found by dividing the withdrawal amount, including any withdrawal charges, by Contract Value immediately prior to the withdrawal.
You may apply the Minimum Income Benefit, less any applicable premium tax and pro rata account administration charge, to purchase a fixed Annuity within 30 days of any Contract anniversary following the 10th Contract anniversary. You may apply the Minimum Income Benefit to purchase only a fixed Annuity under Option 2, life income with a 10-year period certain, or Option 4B, joint and last survivor with a 10-year period certain. See the discussion of Options 2 and 4 under “Annuity Options.” The Annuity rates for this rider are based upon the 1983(a) mortality table with mortality improvement under Projection Scale G and an interest rate of 2½%. This rider was available only if the age of the Owner at the time the Contract was issued was 79 or younger.
Example 1. How the Guaranteed Minimum Income Benefit Increases with Purchase Payments and Interest. Assume:
(i)
The Owner purchases the Contract with the Guaranteed Minimum Income Benefit at 5%.
(ii)
The initial Purchase Payment is $100,000.
(iii)
No Contract Value is allocated to the Invesco V.I. Government Money Market or Fixed Account.
(iv)
There are no outstanding loans on the Contract.
At the time the Contract is issued, the Minimum Income Benefit is $100,000. 191 days after Contract issue, the Owner adds a Purchase Payment of $50,000 to the Contract. As a result of interest accrued over the 191 days since the initial Purchase Payment, immediately prior to the $50,000 Purchase Payment, the Minimum Income Benefit has increased to $102,586, calculated as follows:
Purchase Payment x (1 + Effective Annual Interest Rate)Time Elapsed Since Purchase Payment
$100,000 x (1 + .05)(191/365)
$100,000 x 1.05(191/365) = $102,586
After the $50,000 Purchase Payment, the Minimum Income Benefit is $152,586 ($102,586 + $50,000).
Example 2. How the Guaranteed Minimum Income Benefit Decreases as a Result of Withdrawals.
Continuing from Example 1, the Owner takes a withdrawal of $15,000 a little over a year (377 days) after the $50,000 Purchase Payment. The Contract Value prior to the withdrawal is $150,000 and the Minimum Income Benefit prior to the withdrawal is $160,472.50 ($152,586 x 1.05(377/365)). After the withdrawal, the Minimum Income Benefit decreases as follows:
Minimum Income Benefit prior to withdrawal x (1 - (Withdrawal amount / Contract Value prior to Withdrawal))
$160,472.50 x (1 - ($15,000 / $150,000))
$160,472.50 x (1 - .10)
$160,472.50 x .90 = $144,425.25
B-1
After the $15,000 withdrawal, the Contract Value is $135,000 ($150,000 - $15,000), and the Minimum Income Benefit is $144,425.25.
Example 3. How the Minimum Income Benefit is used at Annuitization.
Continuing from Example 2, the Owner decides to annuitize the Contract 20 days after the 10th Contract anniversary. Approximately 3,104 days have elapsed since the last withdrawal of $15,000. The Owner has taken no other withdrawals and added no additional Purchase Payments to the Contract. The Owner chooses Annuity Option 2 and monthly annuity payments. At the time of annuitization, the year is 2020, and the Owner, a male, is age 72. The guaranteed rate per thousand for the 5% Guaranteed Minimum Income Benefit assuming life with 10 year period certain for a male aged 72 in 2020 is $5.65. As a result of accrued interest, the Minimum Income Benefit at the time of annuitization is $218,695.20 ($144,425.25 x (1.05(3104/365))). The guaranteed monthly annuity payment is calculated as follows:
(Minimum Income Benefit at Annuitization / $1,000) x Applicable guaranteed rate per thousand
($218,695.20 / $1,000) x $5.65
$218.70 x $5.65 = $1,235.63
Example 4. How Advisory Fee Withdrawals Reduce the Guaranteed Minimum Income Benefit. Assume:
(i)
The Owner purchases the Contract with the Guaranteed Minimum Income Benefit at 5%.
(ii)
The initial Purchase Payment is $100,000.
(iii)
No Contract Value is allocated to the Invesco V.I. Government Money Market or Fixed Account.
(iv)
There are no outstanding loans on the Contract.
191 days after the Contract Date, a $1,000 advisory fee is withdrawn from the Contract. Prior to the withdrawal, the Contract Value is $100,000. Assume no Credit Enhancements or Bonus Credits are applicable. At the time the Contract is issued, the initial Guaranteed Minimum Income Benefit is $100,000. Immediately prior to the withdrawal of the advisory fee, the Guaranteed Minimum Income Benefit would have grown to $102,586 ($100,000 x 1.05(191/365)). After the advisory fee is withdrawn, the reduction to the Guaranteed Minimum Income Benefit is calculated as follows:
Guaranteed Minimum Income
Benefit prior to withdrawal
x (1 -
(Advisory Fee Withdrawal
/
Contract Value Prior to
Advisory Fee Withdrawal))
 
 
 
 
 
$102,586 x (1 - ($1,000 / $100,000))
$102,586 x (1 - .01) = $101,560.14
After the advisory fee withdrawal, the Contract Value is $99,000 ($100,000 - $1000) and the Guaranteed Minimum Income Benefit is $101,560.14.
Guaranteed Minimum Withdrawal Benefit — (This rider was available for purchase ONLY prior to February 1, 2010) — If you elected this rider when you purchased the Contract, your “Benefit Amount” was equal to a percentage of the initial Purchase Payment including any Credit Enhancement and/or Bonus Credit. If you purchased the rider on a Contract anniversary, your Benefit Amount was equal to a percentage of your Contract Value on the Valuation Date we added this rider to your Contract. The Benefit Amount, which is the amount available for withdrawal under this rider, is reduced as you take Annual Withdrawal Amounts, and the Benefit Amount as so reduced is referred to as the “Remaining Benefit Amount.”
Under this rider, you may withdraw up to a specified amount each Contract Year (the “Annual Withdrawal Amount”), regardless of the performance of your Contract Value, until the Remaining Benefit Amount is reduced to $0. The Annual Withdrawal Amount initially is a percentage of the initial Purchase Payment including any Credit Enhancement and/or Bonus Credit (or Contract Value on the purchase date of the rider if the rider was purchased on a Contract anniversary). You may select one of the following combinations of Annual Withdrawal Amount and Benefit Amount:
Annual Withdrawal Amount*
Benefit Amount*
5%
130%
6%
110%
B-2
Annual Withdrawal Amount*
Benefit Amount*
7%
100%
*
A percentage of the initial Purchase Payment including any
Credit Enhancement and/or Bonus Credit (or Contract Value
on the purchase date of the rider if the rider was purchased
on a Contract anniversary)
If you do not take the Annual Withdrawal Amount during a Contract Year, you may not take more than the Annual Withdrawal Amount in the next Contract Year, without triggering a proportional reduction in the Annual Withdrawal Amount and Remaining Benefit Amount. The Annual Withdrawal Amount can be taken in one withdrawal or multiple withdrawals during the Contract Year. You can continue to take up to the Annual Withdrawal Amount each Contract Year until the Remaining Benefit Amount is depleted.
Example 1. Annual Withdrawal Amount Continues when the Contract Value Reaches Zero. Assume:
(i)
The Owner purchases the Contract with the Guaranteed Minimum Withdrawal Benefit.
(ii)
The initial Purchase Payment is $100,000, and no additional Purchase Payments are added to the Contract.
(iii)
The Owner elects 5% as the Annual Withdrawal Amount, with 130% as the corresponding Benefit Amount.
(iv)
The assumed rate of return is -1.00%.
At the beginning of Contract Year 1, the Contract Value is $100,000, the Remaining Benefit Amount is $130,000, and the Annual Withdrawal Amount is $5,000. If the Owner takes no other withdrawals in Contract Year 1 besides the Annual Withdrawal Amount, at the beginning of Contract Year 2, the Contract Value is $94,050 and the Remaining Benefit Amount is $125,000. If the Owner continues taking only the Annual Withdrawal Amount each Contract Year, at the end of Contract Year 19, the Contract Value is $0, but the Remaining Benefit Amount is $35,000. The Owner can continue taking the Annual Withdrawal Amount for seven additional Contract Years until the Remaining Benefit Amount is $0.
If you take more than the Annual Withdrawal Amount in a Contract Year, we will recalculate the Remaining Benefit Amount, and your Annual Withdrawal Amount may be lower in the future. Withdrawals under this rider reduce Contract Value by the amount of the withdrawal, including any applicable withdrawal charges or premium taxes and any forfeited Credit Enhancements; provided, however, that a withdrawal of the Annual Withdrawal Amount is not subject to a withdrawal charge. Any withdrawal up to the Annual Withdrawal Amount in a Contract Year reduces the Free Withdrawal amount otherwise available in that Contract Year, and withdrawals, including withdrawals of the Annual Withdrawal Amount, may result in forfeiture of Credit Enhancements if you have the Extra Credit Rider in effect. Please see the discussion under “Contingent Deferred Sales Charge,” and “Extra Credit.” Withdrawals, including withdrawals of the Annual Withdrawal Amount, may result in receipt of taxable income to the Owner and, if made prior to the Owner attaining age 59½, may be subject to a 10% penalty tax. Please see “Federal Tax Matters.”
The Annual Withdrawal Amount will remain the same each Contract Year unless you make additional Purchase Payments after the purchase date of the rider, withdraw more than the Annual Withdrawal Amount in a Contract Year, or elect to reset the Remaining Benefit Amount as discussed below. If additional Purchase Payments are made, the Annual Withdrawal Amount will increase by an amount equal to 5%, 6% or 7% of the Purchase Payment including any Credit Enhancements and/or Bonus Credits, and the Remaining Benefit Amount will increase by an amount equal to 130%, 110% or 100% of the Purchase Payment including any Credit Enhancements and/or Bonus Credits, depending on which combination of Annual Withdrawal Amount and Benefit Amount you have selected.
The Annual Withdrawal Amount and Remaining Benefit Amount are recalculated in the event of a withdrawal in a Contract Year that exceeds the Annual Withdrawal Amount as follows. The Annual Withdrawal Amount and Remaining Benefit Amount respectively are reduced by an amount equal to a percentage of the Annual Withdrawal Amount and Remaining Benefit Amount. The percentage is determined by dividing the excess withdrawal amount by Contract Value after deduction of any Annual Withdrawal Amount included in the withdrawal.
Example 2. Effect of an Excess Withdrawal and Recalculation of the Remaining Benefit Amount and the Annual Withdrawal Amount. Assume:
(i)
The Owner purchases the Contract with the Guaranteed Minimum Withdrawal Benefit.
(ii)
The initial Purchase Payment is $100,000, and no additional Purchase Payments are added to the Contract.
(iii)
The Owner elects 5% as the Annual Withdrawal Amount, with 130% as the corresponding Benefit Amount.
B-3
At the beginning of Contract Year 1, the Contract Value is $100,000, the Remaining Benefit Amount is $130,000, and the Annual Withdrawal Amount is $5,000. Due to negative market performance, in Contract Year 1 the Contract Value is reduced to $85,000 and the Owner decides to withdraw $15,000. This reduces the Contract Value to $70,000 ($85,000 - $15,000). Because the $15,000 withdrawal exceeds the Annual Withdrawal Amount, the Remaining Benefit Amount and future Annual Withdrawal Amount will be reduced. The excess withdrawal is equal to $10,000 ($15,000 - $5,000), the amount of the withdrawal in excess of the Annual Withdrawal Amount.
The percentage reduction in the Remaining Benefit Amount and the future Annual Withdrawal Amount is calculated as follows:
Excess Withdrawal Amount / (Contract Value Prior to Withdrawal - Annual Withdrawal Amount):
$10,000 / ($85,000 - $5,000)
$10,000 / $80,000 = 12.50%
The adjusted Remaining Benefit Amount is calculated as follows:
(Remaining Benefit Amount - Annual Withdrawal Amount) x (1 - Calculated Reduction)
$130,000 - $5,000 = $125,000
$125,000 x (1 - 12.50%) = $109,375
The future Annual Withdrawal Amount is calculated as follows:
Annual Withdrawal Amount x (1 - Calculated Reduction)
$5,000 x (1 - 12.50%) = $4,375
After the reduction, the Remaining Benefit Amount is $109,375 and the future Annual Withdrawal Amount is $4,375.
After the fifth anniversary of the purchase of this rider, you may elect to reset the Remaining Benefit Amount to an amount equal to Contract Value on the reset date and the Annual Withdrawal Amount to 5%, 6% or 7%, as applicable, of Contract Value on that date; provided, however, that the Annual Withdrawal Amount will remain the same if the current Annual Withdrawal Amount is greater than the reset amount. Once a reset election has been made, you may not elect another reset until after the fifth anniversary of the prior reset date. The Company reserves the right to require that resets be effected on a Contract anniversary and the rider charge may be increased in the event that you elect a reset; provided, however, that such charge will not exceed 1.10%.
Example 3. Remaining Benefit Amount Reset. Assume:
(i)
The Owner purchases the Contract with the Guaranteed Minimum Withdrawal Benefit.
(ii)
The initial Purchase Payment is $100,000, and no additional Purchase Payments are added to the Contract.
(iii)
The Owner elects 5% as the Annual Withdrawal Amount, with 130% as the corresponding Benefit Amount.
At the beginning of Contract Year 1, the Contract Value is $100,000, the Remaining Benefit Amount is $130,000, and the Annual Withdrawal Amount is $5,000. On the sixth Contract anniversary, the Owner elects to reset the Remaining Benefit Amount. The Owner has taken no other withdrawals besides the Annual Withdrawal Amount for the last six Contract Years. On the sixth Contract anniversary, due to positive market performance, the Contract Value is $120,000, and the Remaining Benefit Amount is $100,000 ($130,000 – ($5,000 x 6)). Upon the reset, the Remaining Benefit Amount will increase to $120,000, and the Annual Withdrawal Amount will increase from $5,000 to $6,000 ($120,000 x 5%). After the reset, the Contract will not be eligible for another reset until after the 11th Contract anniversary.
Example 4. How Advisory Fee Withdrawals Reduce the Guaranteed Minimum Withdrawal Benefit. Assume:
(i)
The Owner purchases the Contract with the Guaranteed Minimum Withdrawal Benefit.
(ii)
The initial Purchase Payment is $100,000, and no additional Purchase Payments are added to the Contract.
(iii)
The Owner elects 5% as the Annual Withdrawal Amount, with 130% as the corresponding Benefit Amount.
B-4
A $1,000 advisory fee is withdrawn from the Contract. Prior to the withdrawal, the Contract Value is $100,000. Because the advisory fee of $1,000 is less than the Annual Withdrawal Amount of $5,000, the withdrawal reduces the Guaranteed Minimum Withdrawal Benefit dollar for dollar as follows:
Guaranteed Minimum Withdrawal Benefit
Prior to Advisory Fee Withdrawal
-
Advisory Fee Withdrawal
 
 
 
$130,000 - $1,000 = $129,000
After the withdrawal, the remaining Annual Withdrawal Amount is reduced as follows:
Annual Withdrawal Amount Prior to Advisory Fee Withdrawal - Advisory Fee Withdrawal
$5,000 - $1,000 = $4,000
If the advisory fee withdrawal is $6,000 (and therefore greater than the Annual Withdrawal Amount), the Guaranteed Minimum Withdrawal Benefit is reduced proportionately as follows:
(Guaranteed
Minimum
Withdrawal
Benefit Prior to
Advisory Fee
Withdrawal
-
Annual
Withdrawal
Amount)
x [1 -
(Advisory
Fee
Withdrawal
-
Annual
Withdrawal
Amount)
/
(Contract
Value Prior to
Advisory Fee
Withdrawal
-
Annual
Withdrawal
Amount)]
 
 
 
 
 
 
 
 
 
 
 
($130,000 - $5,000) x [1 - ($6,000 - $5,000) / ($100,000 - $5,000)]
$125,000 x [1 - ($1,000 / $95,000)] = $123,684.21
The withdrawal reduces the Guaranteed Minimum Withdrawal Benefit by more than the amount of the withdrawal. After the withdrawal, the remaining Annual Withdrawal Amount is $0. The advisory fee withdrawal will proportionately reduce the Annual Withdrawal Amount available in future Contract Years. The Annual Withdrawal Amount for the next Contract Year is calculated as follows:
Annual
Withdrawal
Amount Prior to
Advisory Fee
Withdrawal
-
[1 -
(Advisory
Fee
Withdrawal
-
Annual
Withdrawal
Amount)
/
(Contract
Value Prior to
Advisory Fee
Withdrawal
-
Annual
Withdrawal
Amount)]
 
 
 
 
 
 
 
 
 
 
$5,000 x [1 - ($6,000 - $5,000) / ($100,000 - $5,000)]
$5,000 x ($1,000 / $95,000) = $4,947.37
While this rider is in effect, we reserve the right to restrict subsequent Purchase Payments. This rider will terminate upon the earliest of: (1) termination of the Contract, (2) the Annuity Start Date, (3) any Valuation Date on which Contract Value and the Remaining Benefit Amount are equal to $0, (4) a full withdrawal of Contract Value pursuant to a withdrawal that exceeds the Annual Withdrawal Amount for that Contract Year, or (5) upon the first death of any Owner, or if the Owner is a non-natural person, the death of an Annuitant or a Joint Owner that is a natural person. This rider may not be reinstated by Purchase Payments or reset after such termination. This rider was available only if the age of each Owner and Annuitant at the time the rider was purchased was 85 or younger.
If you have a Qualified Contract, you may be required to take minimum distributions from the Contract during your lifetime. If your required minimum distribution amount exceeds your Annual Withdrawal Amount, you will have to withdraw more than the Annual Withdrawal Amount to avoid the imposition of a 50% excise tax, causing a proportional reduction in the Remaining Benefit Amount.
B-5
Bonus Credit Rider
During the period that began September 1, 2005 and ended December 31, 2007, the Company paid a Bonus Credit equal to 2% of any initial Purchase Payment applied to a Contract issued during that time period; provided, however, that the rider was available only if (1) the Company issued the Contract during the period of September 1, 2005 through December 31, 2007; (2) the Contract was issued without an Alternate Withdrawal Charge Rider; and (3) the age of any Owner on the Contract Date was 80 or younger. The Company applied the Bonus Credit at the time the initial Purchase Payment was effective and allocated it among the Subaccounts in the same proportion as the initial purchase payment. This rider is no longer available. There is no additional charge for the 2% Bonus Credit.
C-1
 
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The Statement of Additional Information (SAI) contains additional information about the Contract, us, and the Separate Account, including financial statements. The SAI is dated the same date as this Prospectus and the SAI is incorporated by reference into this Prospectus. You may request a free copy of the SAI or submit inquiries about the Contract by writing the Company at its Administrative Office, P.O. Box 750497, Topeka, KS 66675-0497, by calling 1-800-888-2461 or by visiting us online at https://dfinview.com/SecurityBenefit/TAHD/336277405?site=PFSBL.
You may also obtain reports and other information about the Separate Account on the SEC’s website at www.sec.gov, and copies of this information may be obtained, upon payment of a duplicating fee, by electronic request at the following email address: publicinfo@sec.gov.
EDGAR Contract Identifier C000028147

Table of Contents
SECUREDESIGNS® VARIABLE ANNUITY
May 1, 2024
Variable Annuity Account B
Individual Flexible Purchase Payment Deferred Variable Annuity Contract
Statement of Additional Information
Issued By:
Mailing Address:
First Security Benefit Life Insurance and Annuity
Company of New York
121 State Street
Albany, NY 12207
1-800-355-4570
www.fsbl.com
First Security Benefit Life Insurance and Annuity
Company of New York
P.O. Box 750497
Topeka, Kansas 66675-0497
This Statement of Additional Information is not a prospectus; it should be read in conjunction with the current Prospectus for the SecureDesigns Variable Annuity dated May 1, 2024, as it may be supplemented from time to time. A copy of the Prospectus may be obtained free of charge from the Company by calling 1-800-888-2461 or by writing P.O. Box 750497, Topeka, Kansas 66675-0497.
6959A
32-69594-01 2024/05/01
Table of Contents
 
Page
General Information and History
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1
General Information and History
The Company — The Company is a life insurance company that offers life insurance policies and annuity contracts, as well as financial and retirement services. The Company is a stock life insurance company organized under the insurance laws of the State of New York on November 8, 1994. The Company offers fixed and variable annuity contracts in New York and is admitted to do business in that state. On September 8, 1995, the Company merged with and is the successor corporation of Pioneer National Life Insurance Company, a stock life insurance company organized under the laws of the State of Kansas. The Company’s indirect parent, Eldridge Industries, LLC, owns, operates and invests in businesses across a wide range of sectors and is ultimately controlled by Todd L. Boehly.
The Separate Account — The Company established Variable Annuity Account B as a separate account under New York law on January 22, 1996. The Separate Account is registered with the SEC as a unit investment trust under the Investment Company Act of 1940, as amended (the “1940 Act”).
Principal Underwriter — The Company currently offers the Contract on a continuous basis. The Company anticipates continuing to offer the Contract but reserves the right to discontinue the offering. The Principal Underwriter for the Contract is Security Distributors, LLC (“SDL”), located at One Security Benefit Place, Topeka, Kansas 66636-0001. SDL, a wholly-owned subsidiary of Security Benefit Life Insurance Company, an affiliate of the Company, is registered as a broker-dealer with the SEC and is a member of the Financial Industry Regulatory Authority (“FINRA”).
The Company pays commissions to Selling Broker-Dealers through SDL in connection with sales of the Contract. During fiscal years 2023, 2022, and 2021, the amounts paid to SDL in connection with all Contracts sold through the Separate Account were $22,001, $53,664, and $114,514, respectively. SDL passes through commissions it receives to Selling Broker-Dealers for their sales and does not retain any portion of commissions it receives as principal underwriter for the Contract. However, the Company (or an affiliate) pays some or all of SDL’s operating and other expenses, including the following sales expenses: compensation and bonuses for SDL’s management team, compensation and benefits for SDL’s registered representatives, advertising expenses, and other expenses of distributing the Contract.
General Information — For a description of the Contract, the Company, and the Separate Account, see the Prospectus for the Contract. This Statement of Additional Information contains information that supplements the information in the Prospectus. Defined terms used in this Statement of Additional Information have the same meaning as terms defined in the section entitled “Definitions” in the Prospectus.
Safekeeping of Assets — The Company is responsible for the safekeeping of the assets of the Subaccounts. These assets, which consist of shares of the Underlying Funds in non-certificated form, are held separate and apart from the assets of the Company’s General Account and its other separate accounts.
Non-Principal Risks of Investing in the Contract
All non-principal risks of purchasing the Contract are disclosed in the Prospectus in their related subject matter sections.
Additional Payments to Service Providers
The Company has entered into an administrative services agreement with its affiliate, Security Benefit Life Insurance Company (“SBL”). Pursuant to this agreement, SBL provides management and administrative services for the Separate Account and the Contract, including underwriting, claims, and actuarial services. The Company reimburses SBL for the services and facilities it provides to the Company. For the years ended December 31, 2023, 2022, and 2021, the Company paid $235,696, $267,735, and $259,186, respectively, under the agreement.
Method of Deducting the Excess Charge
The minimum mortality and expense risk charge of 0.60%, and the administration charge of 0.15%, on an annual basis, of each Subaccount’s average daily net assets, are factored into the accumulation unit value or “price” of each Subaccount on each Valuation Date. The Company deducts any mortality and expense risk charge above the minimum charge and the charge for any optional riders (the “Excess Charge”) on a monthly basis.
2
Each Subaccount declares a monthly subaccount adjustment and the Company deducts the Excess Charge from this monthly subaccount adjustment upon its reinvestment in the Subaccount. The Excess Charge is a percentage of your Contract Value allocated to the Subaccount as of the reinvestment date. The monthly subaccount adjustment is paid only for the purpose of collecting the Excess Charge. Assuming you owe a charge above the minimum mortality and expense risk charge and the administration charge, your Contract Value will be reduced in the amount of your Excess Charge upon reinvestment of the Subaccount’s monthly subaccount adjustment. The Company reserves the right to compute and deduct the Excess Charge from each Subaccount on each Valuation Date.
The Company will declare a monthly subaccount adjustment for each Subaccount on one Valuation Date of each calendar month (“Record Date”). The Company will pay the monthly subaccount adjustment on a subsequent Valuation Date (“Reinvestment Date”) within five Valuation Dates of the Record Date. Such subaccount adjustment will be declared as a dollar amount per Accumulation Unit.
For each Subaccount, any Owner as of the Record Date will receive on the Reinvestment Date a net subaccount adjustment equal to:
1.
the amount of subaccount adjustment per Accumulation Unit; times
2.
the number of Accumulation Units allocated to the Subaccount as of the Record Date; less
3.
the amount of the Excess Charge for that Subaccount; provided that the Company will not deduct any Excess Charge from the first subaccount adjustment following the Contract Date.
The net monthly subaccount adjustment will be reinvested on the Reinvestment Date at the Accumulation Unit Value determined as of the close of that date in Accumulation Units of the Subaccount.
An example of this process is as follows. Assuming Contract Value of $50,000 allocated to the Guggenheim VIF StylePlus Large Core Subaccount and no riders, the Excess Charge would be computed as follows:
Mortality and Expense Risk Charge
 
0.70%
Plus: Optional Rider Charge
+
N/A
Less: Minimum Charge
-
0.60%
Excess Charge on an Annual Basis
 
0.10%
Further assuming 5,000 Accumulation Units with an Accumulation Unit Value of $10 per unit on December 30 and a gross subaccount adjustment of $0.025 per unit declared on December 31 (Record Date), the net subaccount adjustment amount would be as follows:
Accumulation Unit Value as of Valuation Date before Record Date
 
$10.00
Accumulation Unit Value as of Reinvestment Date
-
$9.975
Gross Subaccount Adjustment Per Unit
 
$0.025
Less: Excess Charge Per Unit
-
$0.00085
Net Subaccount Adjustment Per Unit
 
$0.02415
Times: Number of Accumulation Units
x
5,000
Net Subaccount Adjustment Amount
 
$120.75
The net monthly subaccount adjustment amount would be reinvested on the Reinvestment Date in Accumulation Units of the Guggenheim VIF StylePlus Large Core Subaccount as follows: $0.02415 (net monthly subaccount adjustment per unit) divided by $9.975 (Accumulation Unit value as of the Reinvestment Date) times 5,000 Units equals 12.105 Accumulation Units. On the Reinvestment Date, 12.105 Accumulation Units are added to Contract Value for a total of 5,012.105 Accumulation Units after the monthly subaccount adjustment reinvestment. Contract Value on the Reinvestment Date is equal to 5,012.105 Accumulation Units times $9.975 (Accumulation Unit Value as of the Reinvestment Date) for a Contract Value of $49,995.75 after the monthly subaccount adjustment reinvestment.
After the Annuity Start Date, the Company will deduct an annual mortality and expense risk charge of 1.25%. This charge is factored into the annuity unit values on each Valuation Date.
3
Limits on Purchase Payments Paid Under Tax-Qualified Retirement Plans
Sections 408 and 408A — Premiums (other than rollover contributions) paid under a Contract used in connection with a traditional or Roth individual retirement annuity (IRA) that is described in Section 408 or Section 408A of the Internal Revenue Code are subject to the limits on contributions to IRAs under Section 219(b) of the Internal Revenue Code. Under Section 219(b) of the Code, contributions (other than rollover contributions) to an IRA are limited to the lesser of (i) $7,000 (for 2024) or (ii) 100% of the individual’s taxable compensation.
If an individual is age 50 or over, the individual may make an additional catch up contribution to a traditional or Roth IRA of $1,000 (indexed for inflation beginning in 2024) for each tax year.
Spousal IRAs allow an Owner and his or her spouse to each contribute up to the applicable dollar amount to their respective IRAs so long as a joint tax return is filed and joint income is at least equal to the combined contributions. The maximum amount the higher compensated spouse may contribute for the year is the lesser of (i) $7,000 or $8,000 if age 50 or older (for 2024) or (ii) 100% of that spouse’s compensation. The maximum the lower compensated spouse may contribute is the lesser of (i) $7,000 or $8,000 if age 50 or older (for 2024) or (ii) 100% of that spouse’s compensation plus the amount by which the higher compensated spouse’s compensation exceeds the amount the higher compensated spouse contributes to his or her IRA. The extent to which an Owner may deduct contributions to a traditional IRA depends on the gross income of the Owner and his or her spouse for the year and whether either is an “active participant” in an employer-sponsored retirement plan.
Premiums under a Contract used in connection with a simplified employee pension plan described in Section 408 of the Internal Revenue Code are subject to limits under Section 402(h) of the Internal Revenue Code. Section 402(h) currently limits employer contributions and salary reduction contributions (if permitted) under a simplified employee pension plan to the lesser of (a) 25% of the compensation of the participant in the Plan, or (b) $69,000 (for 2024). Salary reduction contributions, if any, are subject to additional annual limits.
Performance Information
Performance information for the Subaccounts of the Separate Account, including the yield and effective yield of the Invesco V.I. Government Money Market Subaccount, and the average annual total return and total return of all Subaccounts, may appear in advertisements, reports, and promotional literature provided to current or prospective Owners.
Quotations of yield for the Invesco V.I. Government Money Market Subaccount will be based on the change in the value, exclusive of capital changes and income other than investment income, of a hypothetical investment in a Contract over a particular seven day period, less a hypothetical charge reflecting deductions from the Contract during the period (the “base period”) and stated as a percentage of the investment at the start of the base period (the “base period return”). The base period return is then annualized based on the formula provided below with the resulting yield figure carried to at least the nearest one hundredth of one percent. Any quotations of effective yield for the Invesco V.I. Government Money Market Subaccount assume that all monthly subaccount adjustments received during an annual period have been reinvested. Calculation of “effective yield” begins with the same “base period return” used in the yield calculation, which is then annualized to reflect weekly compounding pursuant to the following formula:
Effective Yield = [(Base Period Return + 1)365/7] - 1
Quotations of average annual total return for any Subaccount will be expressed in terms of the average annual compounded rate of return of a hypothetical investment in a Contract over a period of one, five and ten years (or, if less, up to the life of the Subaccount), calculated pursuant to the following formula: P(1 + T)n = ERV (where P = a hypothetical initial payment of $1,000, T = the average annual total return, n = the number of years, and ERV = the ending redeemable value of a hypothetical $1,000 payment made at the beginning of the period).
Average annual total return figures (referred to as “Standardized Total Return”) are calculated from the inception date of the Subaccounts under the Contract, and reflect the deduction of the following charges: (1) the maximum mortality and expense risk charge of 0.85%; (2) maximum optional rider charges of 1.70%; (3) the administration charge of 0.15%; (4) the account administration charge of $30; and (5) the contingent deferred sales charge.
Other total return figures (referred to as “Non-Standardized Total Return”) may be quoted that do not assume a surrender and that do not reflect deduction of the contingent deferred sales charge and account administration charge of $30; provided that such figures do not reflect the addition of any Credit Enhancement. The contingent deferred sales charge and account administration charge, if reflected, would lower the Non-Standardized Total
4
Return. Total return figures that do not reflect deduction of all charges will be accompanied by Standardized Total Return figures that reflect such charges and which date from the Separate Account inception date.
Total return figures may also be shown for periods beginning prior to the availability of the Contract. Such total return figures are based upon the performance of the Underlying Funds, adjusted to reflect the maximum charges imposed under the Contract. Any quotation of performance that pre-dates the date of inception of the Separate Account (or a Subaccount thereof as applicable) will be accompanied by Standardized Total Return figures that reflect the deduction of the applicable contingent deferred sales charge and other fees and charges since the date of inception of the Separate Account or Subaccount.
Total return figures also may be quoted that assume the Owner has purchased an Extra Credit Rider and, as such, will reflect any applicable Credit Enhancements; however, such total return figures will also reflect the deduction of all applicable charges, including any contingent deferred sales charge and any account administration charge.
Quotations of total return for any Subaccount will be based on a hypothetical investment in a Subaccount over a certain period and will be computed by subtracting the initial value of the investment from the ending value and dividing the remainder by the initial value of the investment. Such quotations of total return will reflect the deduction of all applicable charges to the Contract and the Separate Account (on an annual basis) except the applicable contingent deferred sales charge.
Performance information for any Subaccount reflects only the performance of a hypothetical Contract under which Contract Value is allocated to that Subaccount during a particular time period on which the calculations are based. Performance information should be considered in light of the investment objectives and policies, characteristics and quality of the Underlying Fund in which the Subaccount invests, and the market conditions during the given time period, and should not be considered as a representation of what may be achieved in the future. Yields and total returns do not reflect any advisory fees paid to financial intermediaries from your Contract Value or other assets. If such charges were reflected, performance would be lower.
Mixed and Shared Funding Conflicts
Because the Underlying Funds may serve as investment vehicles for both variable life insurance policies and variable annuity contracts (“mixed funding”) and shares of the Underlying Funds also may be sold to separate accounts of other insurance companies (“shared funding”), material conflicts could occur. The Company currently does not foresee any disadvantages to Owners arising from either mixed or shared funding; however, due to differences in tax treatment or other considerations, it is possible that the interests of owners of various contracts for which the Underlying Funds serve as investment vehicles might at some time be in conflict. However, the Company, each Underlying Fund’s Board of Directors, and any other insurance companies that participate in the Underlying Funds are required to monitor events in order to identify any material conflicts that arise from mixed and/or shared funding. If such a conflict were to occur, the Company would take steps necessary to protect Owners, including withdrawal of the Separate Account from participation in the Underlying Fund(s) involved in the conflict. This might force the Underlying Fund to sell securities at disadvantageous prices.
Independent Registered Public Accounting Firm
The financial statements of First Security Benefit Life Insurance and Annuity Company of New York at December 31, 2023 and 2022, and for each of the three years in the period ended December 31, 2023, and the financial statements of Variable Annuity Account B at December 31, 2023, and for each of the specified periods ended December 31, 2023 and 2022, or for portions of such periods as disclosed in the financial statements appearing in this Statement of Additional Information have been audited by Ernst  & Young  LLP, 1828 Walnut Street, Suite 04-100, Kansas City, Missouri, 64108-1840, independent registered public accounting firm, as set forth in their reports thereon appearing elsewhere herein, and are included in reliance upon such reports given on the authority of such firm as experts in accounting and auditing.
Financial Statements
The financial statements of First Security Benefit Life Insurance and Annuity Company of New York at December 31, 2023 and 2022, and for each of the three years in the period ended December 31, 2023, and the financial statements of Variable Annuity Account B at December 31, 2023, and for each of the specified periods ended December 31, 2023 and 2022, or for portions of such periods as disclosed in the financial statements, are set forth herein, following this section.
5
The financial statements of First Security Benefit Life Insurance and Annuity Company of New York, which are included in this Statement of Additional Information, should be considered only as bearing on the ability of the Company to meet its obligations under the Contract. They should not be considered as bearing on the investment performance of the assets held in the Separate Account.
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Table of Contents

FINANCIAL STATEMENTS AND SUPPLEMENTARY

INFORMATION (STATUTORY BASIS)

First Security Benefit Life Insurance and Annuity Company of New York

Years Ended December 31, 2023 and 2022

With Reports of Independent Auditors

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Financial Statements and Supplementary Information

(Statutory Basis)

Years Ended December 31, 2023 and 2022

Contents

 

Report of Independent Auditors

     1  

Audited Financial Statements - Statutory Basis

   

Balance Sheets

      4  

Statements of Operations

      5  

Statements of Changes in Capital and Surplus

      6  

Statements of Cash Flow

      7  

Notes to Financial Statements

      8  

Exhibits and Financial Statement Schedules

      47  

Table of Contents

Report of Independent Auditors

The Board of Directors

First Security Benefit Life Insurance and Annuity Company of

 New York

Opinion

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

Unmodified Opinion on Statutory-Basis of Accounting

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at 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, on the basis of accounting described in Note 1.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the 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 at 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 audits 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 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.

 

1

Table of Contents

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 1 to the financial statements, the Company prepared these financial statements using accounting practices prescribed or permitted by the New York State Department of Financial Services – Insurance Division, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The effects on the financial statements of the variances between these statutory accounting practices 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.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the New York State Department of Financial Services – Insurance Division. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the 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 financial statements are issued.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 financial statements.

 

2

Table of Contents

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 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 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 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.

/s/ Ernst & Young LLP

Kansas City, Missouri

April 26, 2024

 

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Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Balance Sheets

(Statutory Basis)

 

     December 31,  
     2023     2022  
    

(In Thousands,

Except Share Data)

  

Admitted assets

     

Investments:

     

Bonds

    $ 417,249     $ 378,439  

Preferred stocks

      1,969       3,355  

Policy loans

      403       384  

Cash, cash equivalents and short-term investments

      16,067       14,109  

Other invested assets

      2,034       2,052  
  

 

 

    

 

 

  

Total investments

      437,722       398,339  

Investment income due and accrued

      3,413       2,918  

Income tax receivable

      —        378  

Net deferred income tax asset

      255       435  

Receivable from reinsurers

      639       60,717  

Other assets

      148       268  

Separate account assets

      159,990       143,793  
  

 

 

    

 

 

  

Total admitted assets

    $ 602,167     $ 606,848  
  

 

 

    

 

 

  

Liabilities and capital and surplus

     

Liabilities:

     

Life and annuity reserves

    $ 63,440     $ 75,777  

Funds withheld

      336,232       352,419  

Income tax payable

      9       —   

Other liabilities

      4,318       1,132  

Net transfers due from separate accounts

      (717 )      (943 ) 

Asset valuation reserve

      2,774       2,181  

Separate account liabilities

      159,990       143,793  
  

 

 

    

 

 

  

Total liabilities

      566,046       574,359  

Capital and surplus:

     

Common stock, $10 par value:

     

Authorized, issued, and outstanding – 200,000 shares

      2,000       2,000  

Additional paid-in capital

      33,600       33,600  

Unassigned surplus/ (deficit)

      521       (3,111 ) 
  

 

 

    

 

 

  

Total capital and surplus

      36,121       32,489  
  

 

 

    

 

 

  

Total liabilities and capital and surplus

    $ 602,167     $ 606,848  
  

 

 

    

 

 

  

See accompanying notes.

 

4

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Statements of Operations

(Statutory Basis)

 

     Year Ended December 31,  
     2023     2022     2021  
     (In Thousands)  

Revenues:

       

Annuity considerations and deposits

    $ 8,532     $ 4,459     $ 8,772  

Net investment income

      4,351       3,580       2,965  

Other income

      2,125       2,204       2,543  
  

 

 

    

 

 

    

 

 

  

Total revenues

      15,008       10,243       14,280  

Benefits and expenses:

       

Decrease in reserves and funds for all policies

      (19,491 )      (13,008 )      (7,223 ) 

Surrender benefits

      20,942       15,079       16,173  

Annuity benefits

      7,195       5,148       6,949  

Commissions

      480       479       580  

Other insurance operating expenses and reinsurance activity

      (213 )      (5 )      1,436  
  

 

 

    

 

 

    

 

 

  

Total benefits and expenses

      8,913       7,693       17,915  
  

 

 

    

 

 

    

 

 

  

Income from operations before federal income taxes

      6,095       2,550       (3,635 ) 

Federal income tax (expense) benefit

      (1,489 )      (126 )      (114 ) 
  

 

 

    

 

 

    

 

 

  

Income from operations before net realized gains

      4,606       2,424       (3,749 ) 

Net realized (losses) gains, net of capital gains tax

      (1,075 )      (432 )      (83 ) 
  

 

 

    

 

 

    

 

 

  

Net income (loss)

    $ 3,531     $ 1,992     $ (3,832 ) 
  

 

 

    

 

 

    

 

 

  

See accompanying notes.

 

5

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Statements of Changes in Capital and Surplus

(Statutory Basis)

 

     Common
Stock		      Additional
Paid-In
Capital		      Unassigned
Surplus
(Deficit)		     Total
Capital
and
Surplus		  
     (In Thousands)  

Balance at January 1, 2021

    $ 2,000      $ 33,600      $ 148     $ 35,748  

Net income

      —         —         (3,832 )      (3,832 ) 

Change in asset valuation reserve

      —         —         (428 )      (428 ) 

Change in net deferred income taxes

      —         —         1,168       1,168  

Change in nonadmitted assets

      —         —         (1,472 )      (1,472 ) 

Change in net unrealized capital gains, net of tax

      —         —         78       78  
  

 

 

     

 

 

     

 

 

    

 

 

  

Balance at December 31, 2021

      2,000        33,600        (4,338 )      31,262  

Net income

      —         —         1,992       1,992  

Change in asset valuation reserve

      —         —         494       494  

Change in net deferred income taxes

      —         —         (202 )      (202 ) 

Change in nonadmitted assets

      —         —         (76 )      (76 ) 

Change in net unrealized capital gains, net of tax

      —         —         (981 )      (981 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Balance at December 31, 2022

      2,000        33,600        (3,111 )      32,489  

Net loss

      —         —         3,531       3,531  

Change in asset valuation reserve

      —         —         (593 )      (593 ) 

Change in net deferred income taxes

      —         —         387       387  

Change in nonadmitted assets

      —         —         (406 )      (406 ) 

Change in net unrealized capital loss, net of tax

      —         —         713       713  
  

 

 

     

 

 

     

 

 

    

 

 

  

Balance at December 31, 2023

    $ 2,000      $ 33,600      $ 521     $ 36,121  
  

 

 

     

 

 

     

 

 

    

 

 

  

See accompanying notes.

 

6

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Statements of Cash Flow

(Statutory Basis)

 

     Year Ended December 31,  
     2023     2022     2021  
     (In Thousands)  

Operation activities

       

Revenues:

       

Premium and annuity considerations

    $ 8,532     $ 4,459     $ 8,772  

Net investment income

      3,427       3,683       4,126  

Other income

      1,891       3,066       3,130  

Benefits and expenses:

       

Benefits and surrenders

      (28,360 )      (20,526 )      (23,110 ) 

Net transfers from separate accounts

      7,379       7,676       5,921  

Commissions, expenses, and other deductions

      (36 )      (1,424 )      (2,669 ) 

Federal income taxes, including net tax on capital gains

      (397 )      845       (968 ) 
  

 

 

    

 

 

    

 

 

  

Net cash provided (used) by operations

      (7,564 )      (2,221 )      (4,798 ) 

Investment activities

       

Proceeds from sales, maturities, or repayments of investments:

       

Bonds

      121,558       105,419       134,456  

Stocks

      1,444       375       —   

Other proceeds

      6,349       4,510       3,247  

Cost of investments acquired:

       

Bonds

      (103,705 )      (147,848 )      (137,234 ) 

Stocks

      —        (750 )      (250 ) 

Other invested assets

      (133 )      —        —   

Other applications

      —        (4,273 )      —   

Net decrease (increase) in policy loans

      (19 )      (94 )      23  
  

 

 

    

 

 

    

 

 

  

Net cash provided (used) by investment activities

      25,494       (42,661 )      242  

Financing and miscellaneous activities

       

Cash provided (used) by:

       

Change in funds withheld

      (16,187 )      100,282       6,562  

Other cash (used) provided

      215       (60,987 )      (207 ) 
  

 

 

    

 

 

    

 

 

  

Net cash provided (used) by financing and miscellaneous activities

      (15,972 )      39,295       6,355  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in cash and cash equivalents and short-term investments

      1,958       (5,587 )      1,799  

Cash and cash equivalents and short-term investments at beginning of year

      14,109       19,696       17,897  
  

 

 

    

 

 

    

 

 

  

Cash and cash equivalents and short-term investments at end of year

    $ 16,067     $ 14,109     $ 19,696  
  

 

 

    

 

 

    

 

 

  

See accompanying notes.

 

7

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements

(Statutory Basis)

December 31, 2023

1. Significant Accounting Policies

Organization

First Security Benefit Life Insurance and Annuity Company of New York (the Company) is licensed to transact life insurance business in the States of New York and Kansas and was organized to offer insurance products in the State of New York. The Company’s business activities are concentrated in the sale of variable annuity products, which are supported by separate account assets, and fixed annuity products. The Company is owned entirely by SBL Holdings, Inc. (SBLH), a holding company domiciled in the State of Kansas.

Basis of Presentation

The financial statements of the Company are presented in conformity with accounting practices prescribed or permitted by the New York State Department of Financial Services – Insurance Division (the Department).

The Department recognizes only statutory accounting practices prescribed or permitted by the State of New York in determining and reporting the financial condition and results of operations of an insurance company for purposes of determining its solvency under the New York Insurance Law.

The National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures Manual has been adopted as a component of prescribed or permitted practices by the State of New York.

 

8

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

1. Significant Accounting Policies (continued)

 

Statutory accounting practices differ from U.S. generally accepted accounting principles (GAAP). The more significant variances from GAAP are as follows:

Investments

Investments in bonds and redeemable preferred stocks are carried at amortized cost or market value based on the NAIC designation. GAAP requires that debt securities be classified as held to maturity, trading, or available for sale. Under GAAP, debt securities classified as held to maturity are carried at amortized cost, and debt securities classified as trading or available for sale are carried at fair value. Unrealized holding gains and losses are reported in income for those debt securities classified as trading or as a separate component of stockholder’s equity for those debt securities classified as available for sale. Credit impairments are recognized in earnings. For statutory purposes, bonds and redeemable preferred stocks that are other-than-temporarily impaired are written down to fair value.

For statutory purposes, 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 methods. For GAAP purposes, 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 flow. For high credit quality securities, the retrospective method is used when there is a change in estimated future cash flow. To the extent the Company determines an unrealized loss is due to credit related risk, an allowance for expected credit losses is recognized through a reduction to net income. For statutory purposes, loan-backed and structured securities that are other-than-temporarily impaired are written down to the present value of discounted estimated future cash flows.

Valuation Reserve Liabilities

As prescribed by the NAIC, the asset valuation reserve (AVR) is computed in accordance with a prescribed formula and represents a provision for possible fluctuations in the value of fixed maturity securities, equity securities, mortgage loans, real estate, and other invested assets. Changes to the AVR are charged or credited directly to unassigned surplus. AVR is not recognized under GAAP.

 

9

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

1. Significant Accounting Policies (continued)

 

As also prescribed by the NAIC, the Company reports an interest maintenance reserve (IMR) that represents the net accumulated unamortized realized capital gains and losses attributable to changes in the general level of interest rates on sales of fixed maturity investments, principally bonds. Such gains or losses, net of tax, are amortized into income using the grouped method, with groupings in five year bands based on the expected maturity of the investment sold, with the exception of investments with one calendar year to expected maturity, which are grouped separately from those with two to five calendar years to expected maturity. IMR is not recognized under GAAP.

Related Parties Transactions

Gains on certain economic transactions with related parties, defined as arm’s-length transactions, resulting in the transfer of risks and rewards of ownership and considered permanent, are recognized under SAP rather than deferred until the assets are sold to third parties as required under GAAP.

Policy Acquisition Costs and Value of Business Acquired

The costs of successfully acquiring new business are expensed when incurred, rather than being deferred and amortized as required under GAAP. Expense allowances received or paid in connection with reinsurance are recognized as income or expense when due, rather than deferred and amortized as required under GAAP. For GAAP purposes, the value of business acquired (VOBA) is amortized in a similar manner to the amortization of deferred policy acquisition costs. VOBA is not recognized under statutory accounting.

Nonadmitted Assets

For statutory accounting purposes, certain assets designated as nonadmitted (principally furniture, equipment, leasehold improvements, intangible assets, prepaid expenses, certain deferred income tax assets, and miscellaneous receivables over 90 days old) are excluded from the balance sheets and charged directly to unassigned surplus. Under GAAP, such assets are included on the balance sheets to the extent those assets are not impaired.

 

10

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

1. Significant Accounting Policies (continued)

 

Premiums and Benefits

Revenues for life and annuity policies with mortality or morbidity risk consist of the entire premium received, and benefits incurred represent the total of benefits paid and the change in policy reserves. Premiums received for annuity policies without mortality or morbidity risk are recorded using deposit accounting and credited directly to an appropriate policy reserve account without recognizing premium income. Under GAAP, premiums received in excess of policy charges are not recognized as premium revenue. Also under GAAP, benefits incurred represent the excess of benefits paid over the policy account value and interest credited to the account values.

Policy Reserves

Reserves are based on statutory mortality, morbidity, and interest requirements, with consideration of future withdrawals. All annuity reserves are calculated on the prescribed reserve basis, which partially offsets the effect of immediately charging policy acquisition costs for commissions to expense. Under GAAP, annuity reserves are carried at account value plus reserves associated with guarantees provided by the Company to the contract holders.

Reinsurance

The Company reports reinsurance receivables and prepaid reinsurance premiums as reductions of policy and contract liabilities rather than reporting such amounts as assets as required under GAAP.

Funds Withheld

The Company maintains a funds withheld reinsurance liability equal to the statutory carrying value of the assets segregated to support certain reinsurance agreements. For GAAP purposes, the funds withheld reinsurance liability contains an embedded derivative that is bifurcated and fair valued based on the change in the fair value of the underlying segregated assets.

 

11

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

1. Significant Accounting Policies (continued)

 

Separate Accounts

For statutory accounting purposes, separate account surplus is created through the use of the Commissioners’ Annuity Reserve Valuation Method and is reported as an unsettled transfer from the separate account to the general account.

Deferred Income Taxes

For statutory accounting purposes, deferred income tax assets are limited to (1) the amount of federal income taxes paid in prior years that can be recovered through loss carrybacks for existing temporary differences that reverse by the end of the subsequent three calendar years; plus (2) the lesser of the remaining gross deferred income tax assets expected to be realized within three years of the statement of admitted assets, liabilities, and surplus date or 15% of surplus excluding any net deferred income tax assets, electronic data processing equipment and operating software, and any net positive goodwill; plus (3) the amount of remaining gross deferred income tax assets that can be offset against existing gross deferred income tax liabilities (DTLs). The remaining deferred income tax assets are nonadmitted. Deferred income taxes do not include amounts for state income taxes.

Under GAAP, state income taxes are included in the computation of deferred income taxes, a deferred tax asset (DTA) is recorded for the amount of gross DTAs expected to be realized in future years, and a valuation allowance is established for DTAs that are not realizable.

Embedded Derivatives

Embedded derivatives for statutory accounting are not bifurcated from the host instrument, whereas GAAP accounting requires the embedded derivative to be bifurcated from, accounted for, and reported separately from the host instrument if it is not clearly and closely related to the economic characteristics of the host instrument.

Goodwill

Goodwill, for GAAP purposes, is recognized as the excess of the purchase price over the fair value of identifiable net assets acquired. Goodwill is not amortized, but is reviewed annually for indications of impairment. Statutory accounting does not allow recognition of goodwill resulting from a change of control.

 

12

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

1. Significant Accounting Policies (continued)

 

Cash and Cash Equivalents

The statutory-basis statements of cash flow reconcile to the changes in cash and cash equivalents and short-term investments with original maturities of one year or less. Under GAAP, the statements of cash flow reconcile to changes in cash and cash equivalents, whereby cash equivalents are financial instruments with an original maturity period of 90 days or less.

Other significant accounting policies include the following:

Investments

Investments are valued as prescribed by the NAIC. Bonds with NAIC designations of 1 to 5 are reported principally at cost, adjusted for amortization of premiums and accrual of discounts using the effective interest method. For loan-backed and structured securities, defaults, loss severity of defaulted collateral, and anticipated prepayments are considered using market consensus prepayment speeds when determining the amortization of premiums and accrual of discounts. Adjustments to discounts or premiums resulting when actual defaults, loss severity of defaulted collateral, and prepayments differ substantially from estimates are determined using the retrospective or prospective methods. Redeemable preferred stocks with NAIC designations 1 to 3 are valued at amortized cost. All other redeemable preferred stocks (NAIC designations 4 to 6) are reported at the lower of amortized cost or fair value. All perpetual preferred stocks are valued at fair value, not to exceed any currently effective call price.

Realized capital gains and losses on sales of investments are determined using the specific identification method.

For any decline in the market value of an investment that is determined to be other than temporary, the amortized cost basis of the investment is written down to the estimated fair value as of the date of the determination, except for loan-backed and structured securities where the investment is written down to its discounted expected future cash flows, and the amount of the write-down is accounted for as a realized loss.

 

13

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

1. Significant Accounting Policies (continued)

 

Short-term investments include investments with remaining maturities of one year or less at the time of acquisition and are principally stated at amortized cost.

Policy loans are stated at the aggregate unpaid balance.

The operations of the Company are subject to the risk of interest rate fluctuations to the extent that there is a difference between the amount of the Company’s interest-earning assets and interest-bearing liabilities that reprice or mature in specified periods. The Company engages in asset-liability management intended to generate an acceptable level of return relative to the levels of interest rate risk, liquidity risk and other forms of risk that exist within the Company.

Reserves for Annuity Policies

The reserves for annuity policies are developed by actuarial methods. Annuity reserves are computed using assumptions and valuation methods that will provide, in the aggregate, reserves that are greater than the minimum valuation required by law and greater than the guaranteed policy cash values.

Recognition of Revenues

Life and accident and health premiums are recognized as revenue when due. Premiums for annuity policies with mortality and morbidity risk, except for guaranteed interest contracts, are also recognized as revenue when due. Premiums received for annuity policies without mortality or morbidity risk and for guaranteed interest contracts are recorded as deposits, with revenues consisting of policy charges for the cost of insurance, policy administrative charges, and surrender charges against account balances during the period.

Dividends and interest income, recorded in net investment income, are recognized when earned. Amortization of premiums and accretion of discounts on investments in fixed maturity securities are reflected in net investment income over the contractual terms of the investments in a manner that produces a constant effective yield. For high credit quality securities, the retrospective method is used when there is a change in estimated future cash flows. The prospective method is used for other securities.

 

14

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

1. Significant Accounting Policies (continued)

 

Reinsurance

Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts.

Separate Accounts

The separate accounts are established in conformity with New York insurance laws and are not chargeable with liabilities arising out of any other business of the Company. Premiums designated for investment in the separate accounts are included in revenues with corresponding liability increases included in benefits. Assets and liabilities of the separate accounts, representing net deposits and accumulated net investment earnings held primarily for the benefit of contract holders, are shown as separate captions in the balance sheets. Assets held in the separate accounts are carried at quoted market values or, where quoted market values are not available, at fair market value. The Company receives administrative and risk fees relating to amounts invested in the separate accounts.

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates and assumptions include the valuation of investments, determination of other-than-temporary impairments (OTTIs) of investments, calculation of liabilities for future policy benefits, the calculation of income taxes, and the recognition of DTAs and DTLs. Actual results could differ from those estimates.

 

15

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

2. Investments

The carrying value, gross unrealized gains and losses, and fair value of investments in bonds and preferred stocks at December 31, 2023 and 2022, are summarized as follows:

 

     December 31, 2023  
     Carrying
Amount		      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		      Fair
Value		  
     (In Thousands)  

Bonds:

            

U.S. Treasury securities and obligations of U.S. government corporations and agencies

    $ 425      $ —       $ —       $ 425  

Obligations of government-sponsored enterprises

      41,901        235        838        41,298  

Corporate

      173,327        3,020        9,374        166,973  

Obligations of foreign governments

      500        —         72        428  

Municipal governments

      16,819        728        661        16,886  

Commercial mortgage-backed

      24,726        92        2,515        22,303  

Residential mortgage-backed

      30,370        200        1,295        29,275  

Collateralized loan obligations

      78,040        158        2,714        75,484  

Other asset backed

      51,141        176        3,391        47,926  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total bonds

    $ 417,249      $ 4,609      $ 20,860      $ 400,998  
  

 

 

     

 

 

     

 

 

     

 

 

  

Preferred stocks:

            

Consumer

    $ 1,207      $ 69      $ 201      $ 1,207  

Financial

      762        3        111        762  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total preferred stocks

    $ 1,969      $ 72      $ 312      $ 1,969  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

16

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

2. Investments (continued)

 

     December 31, 2022  
     Carrying
Amount		      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		      Fair
Value		  
     (In Thousands)  

Bonds:

            

U.S. Treasury securities and obligations of U.S. government corporations and agencies

    $ 426      $ —       $ 1      $ 425  

Obligations of government-sponsored enterprises

      16,244        15        909        15,350  

Corporate

      174,925        560        15,923        159,562  

Obligations of foreign governments

      500        —         78        422  

Municipal governments

      14,268        483        867        13,884  

Commercial mortgage-backed

      30,944        116        2,356        28,704  

Residential mortgage-backed

      13,665        62        1,186        12,541  

Collateralized loan obligations

      85,500        21        5,366        80,155  

Other asset backed

      41,967        21        5,303        36,685  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total bonds

    $ 378,439      $ 1,278      $ 31,989      $ 347,728  
  

 

 

     

 

 

     

 

 

     

 

 

  

Preferred stocks:

            

Consumer

    $ 1,519      $ —       $ 731      $ 1,519  

Financial

      1,836        —         413        1,905  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total preferred stocks

    $ 3,355      $ —       $ 1,144      $ 3,424  
  

 

 

     

 

 

     

 

 

     

 

 

  

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

 

     Carrying
Amount		      Fair Value  
     (In Thousands)  

Due in one year or less

    $ 6,749      $ 6,710  

Due after one year through five years

      45,133        45,141  

Due after five years through ten years

      81,898        79,990  

Due after ten years

      57,290        52,870  

Mortgage-backed securities and other asset-backed securities

      226,179        216,287  
  

 

 

     

 

 

  
   $ 417,249      $ 400,998  
  

 

 

     

 

 

  

 

17

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

2. Investments (continued)

 

For bonds with unrealized losses as of December 31, 2023 and 2022, the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows:

 

     December 31, 2023  
     Less Than 12 Months     Greater Than or Equal
to 12 Months		     Total  
     Fair
Value		      Gross
Unrealized
Losses		     Fair
Value		      Gross
Unrealized
Losses		     Fair
Value		      Gross
Unrealized
Losses		  
     (In Thousands)  

Bonds:

                

U.S. Treasury securities and obligations of U.S. government corporations and agencies

    $ —       $ —      $ 425      $ —      $ 425      $ —   

Obligations of government-sponsored enterprises

      21,757        163       7,947        675       29,704        838  

Corporate

      20,233        773       66,687        8,601       86,920        9,374  

Obligation of foreign governments

      —         —        428        72       428        72  

Municipal governments

      1,605        7       4,583        654       6,188        661  

Commercial mortgage-backed

      533        5       18,677        2,510       19,210        2,515  

Residential mortgage-backed

      8,735        319       8,603        976       17,338        1,295  

Collateralized loan obligation

      17,870        869       40,332        1,845       58,202        2,714  

Other asset backed

      10,156        101       29,342        3,290       39,498        3,391  
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total bonds

    $ 80,889      $ 2,237     $ 177,024      $ 18,623     $ 257,913      $ 20,860  
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Number of securities with unrealized losses

         137          454          591  

Percent investment grade
(NAIC investment grade 1 and 2)

         94 %         93 %         93 % 

 

18

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

2. Investments (continued)

 

     December 31, 2022  
     Less Than 12 Months     Greater Than or Equal
to 12 Months		     Total  
     Fair
Value		      Gross
Unrealized
Losses		     Fair
Value		      Gross
Unrealized
Losses		     Fair
Value		      Gross
Unrealized
Losses		  
     (In Thousands)  

Bonds:

                

U.S. Treasury securities and obligations of U.S. government corporations and agencies

    $ 425      $ 1     $ —       $ —      $ 425      $ 1  

Obligations of government-sponsored enterprises

      13,280        512       1,030        397       14,310        909  

Corporate

      123,971        11,580       14,123        4,343       138,094        15,923  

Obligation of foreign governments

      —         —        422        78       422        78  

Municipal governments

      6,544        742       506        125       7,050        867  

Commercial mortgage-backed

      10,814        594       15,921        1,762       26,735        2,356  

Residential mortgage-backed

      10,033        887       1,293        299       11,326        1,186  

Collateralized loan obligation

      57,437        3,807       22,130        1,559       79,567        5,366  

Other asset backed

      24,444        3,153       10,012        2,150       34,456        5,303  
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total bonds

    $ 246,948      $ 21,276     $ 65,437      $ 10,713     $ 312,385      $ 31,989  
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Number of securities with unrealized losses

         543          181          724  

Percent investment grade
(NAIC investment grade 1 and 2)

         88 %         96 %         90 % 

The unrealized losses on these securities can primarily be attributed to changes in market interest rates and changes in credit spreads since the securities were acquired. At present, the Company cannot ascertain the duration of the current market conditions and the resulting impact on such positions, but believes these losses to be temporary.

The Company closely monitors those securities where impairment concerns may exist. The Company considers relevant facts and circumstances in evaluating whether the impairment of a security is other than temporary. This process involves monitoring market events that could affect issuers’ credit ratings, business climate, management changes, litigation and government actions and other similar factors. This process also involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projections as indicators of credit issues. To the extent that the Company determines that a security is other-than-temporarily impaired, the difference between amortized cost and fair value, or for loan-backed and structured securities, the difference between amortized cost and discounted expected future cash flows, is charged to earnings.

 

19

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

2. Investments (continued)

 

The Company recognized the following OTTI during 2023, on securities within the scope of SSAP No. 43R, as a result of the intent to sell or inability or lack of intent to retain the security for a period of time sufficient to recover the amortized cost basis of the security:

 

     (1)      (2)      (3)  
     Amortized Cost
Basis Before
Other-Than-
Temporary
Impairment		      Other-Than-Temporary
Impairment Recognized in
Loss		      Fair Value
1 - (2a + 2b)		  
   (2a)
Interest		      (2b)
Non-Interest		  
     (in Thousands)  

OTTI recognized with the intent to sell

    $ 193      $ —       $ 8      $ 185  

The Company recognized the following OTTI during 2022, on securities within the scope of SSAP No. 43R, as a result of the intent to sell or inability or lack of intent to retain the security for a period of time sufficient to recover the amortized cost basis of the security:

 

     (1)      (2)      (3)  
     Amortized Cost
Basis Before
Other-Than-
Temporary
Impairment		      Other-Than-Temporary
Impairment Recognized in
Loss		      Fair Value
1 - (2a + 2b)		  
   (2a)
Interest		      (2b)
Non-Interest		  
     (in Thousands)  

OTTI recognized with the intent to sell

    $ 1,317      $ —       $ 359      $ 958  

The Company recognized no OTTI during 2021 as a result of the intent to sell or inability or lack of intent to retain the security for a period of time sufficient to recover the amortized cost basis of the security.

 

20

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

2. Investments (continued)

 

The Company recognized no OTTI during 2023 and 2022, where the present value of cash flows expected to be collected is less than the amortized cost basis of the security.

Loan-backed and structured securities (those whose fair value is less than cost or amortized cost) currently held by the Company, for which an OTTI has not been recognized in earnings as a realized loss, aggregated by length of time that the individual securities have been in a continuous unrealized loss position, are as follows:

 

     December 31, 2023  
     Unrealized
Loss		      Fair
Value		  
     (In Thousands)  

Continuous unrealized loss for less than 12 months

    $ 1,413      $ 54,906  

Continuous unrealized loss for greater than or equal to 12 months

      9,104        105,470  

Major categories of net investment income for the years ended December 31, 2023, 2022, and 2021, are summarized as follows:

 

     2023      2022      2021  
     (In Thousands)  

Interest on bonds

    $ 22,344      $ 13,970      $ 12,121  

Dividends on equity securities

      173        188        183  

Other

      160        153        151  
  

 

 

     

 

 

     

 

 

  

Total investment income

      22,677        14,311        12,455  

Less:

         

Investment expenses

      (251 )       (50 )       (38 ) 

Ceded to reinsurer

      (18,075 )       (10,681 )       (9,452 ) 
  

 

 

     

 

 

     

 

 

  

Net investment income

    $ 4,351      $ 3,580      $ 2,965  
  

 

 

     

 

 

     

 

 

  

 

21

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

2. Investments (continued)

 

General account investment income recognized as a result of a prepayment penalties and/or acceleration fees for the years ended December 31, 2023 and 2022 is $0.0 million and $0.1 million, respectively, impacting 26 and 39 securities, respectively.

There was no separate account investment income recognized as a result of prepayment penalties and/or acceleration for the years ended December 31, 2023 and 2022.

The Company excludes due and accrued income from surplus by nonadmitting if it is over 90 days past due with the exception of mortgage loan investment income which is nonadmitted after 180 days or if the underlying loan is in the process of foreclosure. The Company did not have any nonadmitted investment income as of December 31, 2023. Gross and admitted interest income due and accrued was $3.4 million as of December 31, 2023. The Company did not have any aggregate deferred interest as of December 31, 2023. The Company did not have paid-in-kind interest included in the principal balance of securities as of December 31, 2023.

Proceeds from sales of bonds and equity securities and related realized gains and losses for the years ended December 31, 2023, 2022, and 2021, are as follows:

 

     2023      2022      2021  
     (In Thousands)  

Proceeds from sales

    $ 72,664      $ 58,401      $ 24,685  

Gross realized gains

      189        36        430  

Gross realized losses

      3,656        5,755        41  

 

22

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

2. Investments (continued)

 

Realized gains (losses) net of amounts transferred to the interest maintenance reserve, net of applicable taxes, for the years ended December 31, 2023, 2022, and 2021, consist of the following:

 

     2023      2022      2021  
     (In Thousands)  

Bonds

    $ (3,139 )     $ (6,142 )     $ 411  

Equity securities

      (1,207 )       —         —   

Other invested assets

      —         —         —   
  

 

 

     

 

 

     

 

 

  

Total realized gains (losses)

      (4,346 )       (6,142 )       411  

Income tax (expense) benefit

      705        1,199        (175 ) 

Net ceded reinsurance (gains) losses

      —         —         —   

Transferred to the interest maintenance reserve, net of tax

      2,566        4,511        (319 ) 
  

 

 

     

 

 

     

 

 

  

Net realized (losses) gains

    $ (1,075 )     $ (432 )     $ (83 ) 
  

 

 

     

 

 

     

 

 

  

Restricted assets, including pledged assets at December 31, 2023, consist of the following:

 

     Total
General
Account
(GA)		      Total
From
Prior
Year		      Increase/
(Decrease)		     Total
Current-
Year
Admitted
Restricted		      Gross
Restricted
to Total
Assets		     Admitted
Restricted
to Total
Admitted
Assets		  
     (In Thousands)  

On deposit with states

    $ 425      $ 426      $ (1 )    $ 425        0.07 %      0.07 % 

Pledged as collateral not captured in other categories

      542        518        24       542        0.09 %      0.09 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total restricted assets

    $ 967      $ 944      $ 23     $ 967        0.16 %      0.16 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

There were no restricted assets related to the separate account.

The assets pledged as collateral were cash and bonds related to reinsurance agreements.

 

23

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

3. Separate Account Transactions

The Company’s separate accounts are established in conformity with New York Insurance Law Section 4240. Under applicable insurance law, the assets and liabilities of the separate accounts are clearly identified and distinguished from the Company’s other assets and liabilities. The portion of the separate account assets applicable to variable annuity contracts held in the separate accounts are not chargeable with liabilities arising out of any other business the Company may conduct.

The Company has separate accounts considered legally insulated from the general account of $160.0 million and $143.8 million as of December 31, 2023 and 2022, respectively.

The separate accounts held by the Company relate primarily to individual variable annuity contracts of a non-guaranteed return nature. The assets and liabilities of these separate accounts are carried at market value. The net investment experience of the separate account is credited directly to the policyholder and can be positive or negative. The variable annuity contracts generally provide an incidental death benefit, and some contracts may have a guaranteed minimum living benefit. The minimum death benefit and living benefit reserves are recorded in the Company’s general account.

Benefit payments by the general account for those guaranteed liabilities of the separate account for the last five years are as follows (in thousands):

 

2023

    $  28  

2022

      28  

2021

      12  

2020

      3  

2019

      6  

To compensate the general account for the risks taken, the separate account for the last five years paid risk charges to the general account of (in thousands):

 

2023

    $ 66  

2022

      73  

2021

      89  

2020

      88  

2019

      101  

 

24

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

3. Separate Account Transaction (continued)

 

Information regarding the separate accounts by risk-based capital (RBC) groupings is as follows:

 

     December 31,  
     2023      2022  
     Non-Guaranteed Separate
Accounts		  
     (In Thousands)  

Premium

    $ 8,357      $ 4,260  
  

 

 

     

 

 

  

Reserves for accounts with assets at:

      

Fair value

    $ 159,202      $ 142,728  

Amortized cost

      —         —   
  

 

 

     

 

 

  

Total

    $ 159,202      $ 142,728  
  

 

 

     

 

 

  

Reserves for accounts by withdrawal characteristics:

      

Discretionary withdrawal at fair value

    $ 157,895      $ 142,049  

Not subject to discretionary withdrawal

      1,307        679  
  

 

 

     

 

 

  

Total

    $ 159,202      $ 142,728  
  

 

 

     

 

 

  

There were no non-indexed guarantee separate accounts less than, equal or greater than 4%.

A reconciliation of the summary of operations of the Company’s separate accounts to the net transfers as recorded in the general account is as follows for the years ended December 31:

 

     2023      2022      2021  
     (In Thousands)  

Transfers as reported in the separate accounts:

         

Transfers to separate accounts

    $ 8,357      $ 4,260      $ 7,537  

Transfers from separate accounts

      (15,139 )       (11,094 )       (13,004 ) 
  

 

 

     

 

 

     

 

 

  

Net transfers as reported in the separate accounts

      (6,782 )       (6,834 )       (5,467 ) 

Reconciling adjustments:

         

Fee withdrawals

      (340 )       (360 )       (325 ) 

Other

      (30 )       195        65  
  

 

 

     

 

 

     

 

 

  

Net transfers as reported in the general account as a decrease in reserves and funds for all policies on the statements of operations

    $ (7,152 )     $ (6,999 )     $ (5,727 ) 
  

 

 

     

 

 

     

 

 

  

 

25

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

4. Related Party Transactions

Certain administrative, distribution, actuarial, and accounting functions of the Company are handled by the Company’s affiliated parties. During the years ended December 31, 2023, 2022, and 2021, the Company paid a total of $0.7 million, $0.7 million, and $0.7 million, respectively, for these services, which are included in other insurance operating expenses in the statements of operations.

During the years ended December 31, 2023, 2022, and 2021, the Company paid $0.0 million, $0.1 million, and $0.1 million, respectively, in commissions to a related party for sales of its variable annuity products.

The Company had receivables from its parent and related parties in the amount of $0.1 million and $0.1 million for December 31, 2023 and 2022. The Company had payables in the amounts of $0.6 million and $0.2 million in the balance sheets at December 31, 2023 and 2022, respectively, for normal business transactions that are settled on a current basis.

The Company had an outstanding balance due from Kennedy-Wilson Inc, a related party, in the amount of $0.1 million and $0.1 million at December 31, 2023 and 2022, respectively.

The Company holds investments, either directly or indirectly, in certain securitizations in which affiliated parties act as collateral managers. The repayment of these investments is dependent upon the performance of the borrowers of the underlying assets held by the securitization vehicle. The borrowers are not affiliated with the Company and the Company does not have recourse to the affiliated collateral manager in the case of non-performance of the unaffiliated borrower. The total carrying value of these investments was $42.2 million and $50.9 million as-of the year ended December 31, 2023 and 2022, respectively.

 

26

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

5. Reinsurance

The Company cedes reinsurance with other companies to provide for greater diversification of business, allow management to control exposure to potential losses arising from large risks, and provide additional capacity for growth.

Principal reinsurance ceded amounts are summarized as follows for the years ended December 31:

 

     2023      2022      2021  
     (In Thousands)  

Reinsurance ceded:

         

Premiums

    $ 9,784      $ 20,153      $ 15,185  
  

 

 

     

 

 

     

 

 

  

Commissions

    $ 467      $ 957      $ 687  
  

 

 

     

 

 

     

 

 

  

Claims

    $ 4      $ —       $ 5  
  

 

 

     

 

 

     

 

 

  

Surrenders

    $ 33,771      $ 16,334      $ 14,424  
  

 

 

     

 

 

     

 

 

  

In the accompanying financial statements, premiums, benefits, settlement expenses, and policy liabilities and accruals are reported net of reinsurance ceded. Accordingly, policy reserves have been shown net of reinsurance credits of $335.8 and $351.4 million at December 31, 2023 and 2022, respectively.

The Company remains liable to policyholders if the reinsurers are unable to meet their contractual obligations under the applicable reinsurance agreements. To minimize its exposure to significant losses from reinsurer insolvencies, the Company evaluates the financial condition of its reinsurers, monitors concentrations of credit risk arising from similar activities or economic characteristics of the reinsurers, and requires collateralization of balances where allowable by contract.

As of December 31, 2023 and 2022, ceded reserves collateralized by the value of the Company’s funds withheld under an indemnity retrocession agreement with a third party reinsurer were $335.9 million and 351.8 million, respectively. These amounts are included in the funds withheld liability on the balance sheets.

The value of the Company’s individual life insurance and living benefit riders are reinsured 100% with Security Benefit Life Insurance Company (SBLIC), an affiliate. As of December 31, 2023 and 2022, the funds withheld associated with this reinsurance agreement was $0.3 million and $0.7 million, respectively.

 

27

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

6. Insurance Liabilities

The Company’s guaranteed minimum death benefit (GMDB) reserves are calculated following the assumptions and methodologies prescribed by NY Insurance Regulation 213. The reserve liability for GMDBs on variable annuity contracts reflected in the general account was $0.3 million and $1.3 million for the years ended December 31, 2023 and 2022, respectively.

The following is a summary of the account values and net amount at risk for variable annuity contracts with GMDB invested in the general account as of December 31:

 

     2023      2022  
     Account
Value		      Net Amount
at Risk		      Weighted-
Average
Attained Age		      Account
Value		      Net Amount
at Risk		      Weighted-
Average
Attained Age		  
     (Dollars in Thousands)  

Return of premium

    $ 68,019      $ 217        64      $ 63,378      $ 708        64  

Step-up

      58,994        880        70        56,564        3,042        70  
  

 

 

     

 

 

        

 

 

     

 

 

     

Total GMDB

    $ 127,013      $ 1,097        67      $ 119,942      $ 3,750        67  
  

 

 

     

 

 

        

 

 

     

 

 

     

The Company previously offered guaranteed living benefits associated with variable annuity contracts, such as guaranteed minimum income benefits (GMIBs) and guaranteed minimum withdrawal benefits (GMWBs). The Company holds reserves for the guaranteed living benefits equal to the guaranteed living benefit reserve calculated following the assumptions and methodologies prescribed by NY Regulation 213.

 

28

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

7. Income Taxes

The Company is included in a consolidated Non-Life/Life federal income tax return filed by Security Benefit Corporation. Under the Company’s tax sharing agreement, federal income taxes are allocated to the Company as if it filed a separate return. The Company is no longer subject to U.S. federal and state examinations by tax authorities for years before 2019. The Internal Revenue Service completed its examination of the Company’s federal tax returns for 2013 through 2018 with minimal adjustments. The State of Illinois has commenced auditing the Security Benefit Corporation and Subsidiaries’ 2019 and 2020 state income tax return. There are no known adjustments.

The provision for income taxes includes current federal income tax expense or benefit. Deferred income taxes due to temporary differences between the financial reporting and income tax bases of assets and liabilities are reflected as a change to capital and surplus, subject to limitations. Such deferred taxes relate principally to reserves and deferred policy acquisition costs.

The application of SSAP No. 101, Income Taxes, A Replacement of SSAP No. 10R and SSAP No. 10, requires a company to evaluate the recoverability of deferred tax assets and to establish a valuation allowance if necessary to reduce the deferred tax asset to an amount which is more likely than not to be realized. 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 reversal; (4) taxable income 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) any tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused. Although the realization is not assured, management believes it is more likely than not that the deferred tax asset will be realized. The Company has not recorded a valuation allowance as of December 31, 2023 and 2022.

 

29

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

7. Income Taxes (continued)

 

The Inflation Reduction Act of 2022 was enacted into law on August 16, 2022, which among other provisions, implements a new corporate alternative minimum tax (“CAMT”) based on average adjusted financial statement income and is effective for tax years beginning after December 31, 2022. To the extent the CAMT (15% of adjusted GAAP pretax income) exceeds the U.S. regular corporate tax (21% of taxable income), an additional current tax expense will be recorded in the period the liability is incurred. A corresponding CAMT credit carryforward will be established as a deferred tax asset and will have an indefinite carryover life recoverable when the regular corporate tax exceeds the CAMT in a given year. While the Company is considered an applicable corporation, and thus is subject to the CAMT, this provision had no impact on the results of operations for year end December 31, 2023. Furthermore, the Company does not expect to be a perpetual CAMT taxpayer. The Company made an accounting policy election to disregard the CAMT in evaluating recoverability of its deferred tax assets established under the U.S. regular corporate tax system.

 

30

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

7. Income Taxes (continued)

 

The Company recorded net deferred tax assets of $0.3 million and $0.4 million as of December 31, 2023 and 2022, respectively. The main components of the deferred tax assets are as follows:

 

     December 31, 2023  
     Ordinary      Capital      Total  
     (In Thousands)  

Current Period:

         

a. Gross deferred tax assets

    $ 2,457      $ 406      $ 2,863  

b. Statutory valuation allowance

      —         —         —   
  

 

 

     

 

 

     

 

 

  

c. Adjusted gross deferred tax asset (a-b)

      2,457        406        2,863  

d. Deferred tax assets nonadmitted

      1,602        242        1,844  
  

 

 

     

 

 

     

 

 

  

e. Subtotal - net deferred tax asset (c-d)

      855        164        1,019  

f. Deferred tax liabilities

      750        14        764  
  

 

 

     

 

 

     

 

 

  

g. Net admitted deferred tax assets (e-f)

    $ 105      $ 150      $ 255  
  

 

 

     

 

 

     

 

 

  

 

     December 31, 2022  
     Ordinary      Capital      Total  
     (In Thousands)  

Prior Period:

         

a. Gross deferred tax assets

    $ 2,599      $ 400      $ 2,999  

b. Statutory valuation allowance

      —         —         —   
  

 

 

     

 

 

     

 

 

  

c. Adjusted gross deferred tax asset (a-b)

      2,599        400        2,999  

d. Deferred tax assets nonadmitted

      1,254        212        1,466  
  

 

 

     

 

 

     

 

 

  

e. Subtotal - net deferred tax asset (c-d)

      1,345        188        1,533  

f. Deferred tax liabilities

      1,084        14        1,098  
  

 

 

     

 

 

     

 

 

  

g. Net admitted deferred tax assets (e-f)

    $ 261      $ 174      $ 435  
  

 

 

     

 

 

     

 

 

  

 

     Changes between December 31, 2023 and 2022  
     Ordinary      Capital      Total  
     (In Thousands)  

Change in Period:

         

a. Gross deferred tax assets

    $ (142 )     $ 6      $ (136 ) 

b. Statutory valuation allowance

      —         —         —   
  

 

 

     

 

 

     

 

 

  

c. Adjusted gross deferred tax asset (a-b)

      (142 )       6        (136 ) 

d. Deferred tax assets nonadmitted

      348        30        378  
  

 

 

     

 

 

     

 

 

  

e. Subtotal - net deferred tax asset (c-d)

      (490 )       (24 )       (514 ) 

f. Deferred tax liabilities

      (334 )       —         (334 ) 
  

 

 

     

 

 

     

 

 

  

g. Net admitted deferred tax assets (e-f)

    $ (156 )     $ (24 )     $ (180 ) 
  

 

 

     

 

 

     

 

 

  

 

31

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

7. Income Taxes (continued)

 

The Company has the necessary RBC levels to admit the increased amount of DTAs under SSAP 101 and an election has been made to do so. Such election has not changed from prior year. The amount of each component of the calculation by character is as follows:

 

     December 31, 2023  
     Ordinary      Capital      Total  
     (In Thousands)  

Current Period:

         

a.   Federal income taxes paid in prior years recoverable through loss carrybacks

    $ —       $ 77      $ 77  

b.  Adjusted gross DTAs expected to be realized (excluding the amount of DTAs from (a) above) after application of the threshold limitation

      105        73        178  

1.  Adjusted gross DTAs expected to be realized following the balance sheet date

      105        73        178  

2.  Adjusted gross DTAs allowed per limitation threshold

      xxxx        xxxx        5,380  

c.   Adjusted gross DTAs (excluding the amount of DTAs from (a) and (b) above) offset by gross DTLs

      750        14        764  
  

 

 

     

 

 

     

 

 

  

d.  DTAs admitted as a result of SSAP No. 101

    $ 855      $ 164      $ 1,019  
  

 

 

     

 

 

     

 

 

  

 

     December 31, 2022  
     Ordinary      Capital      Total  
     (In Thousands)  

Prior Period:

         

a.   Federal income taxes paid in prior years recoverable through loss carrybacks

    $ —       $ 174      $ 174  

b.  Adjusted gross DTAs expected to be realized (excluding the amount of DTAs from (a) above) after application of the threshold limitation

      261        —         261  

1.  Adjusted gross DTAs expected to be realized following the balance sheet date

      261        —         261  

2.  Adjusted gross DTAs allowed per limitation threshold

      xxxx        xxxx        4,808  

c.   Adjusted gross DTAs (excluding the amount of DTAs from (a) and (b) above) offset by gross DTLs

      1,084        14        1,098  
  

 

 

     

 

 

     

 

 

  

d.  DTAs admitted as a result of SSAP No. 101

    $ 1,345      $ 188      $ 1,533  
  

 

 

     

 

 

     

 

 

  

 

32

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

7. Income Taxes (continued)

 

     Changes between December 31,
2023 and 2022		  
     Ordinary      Capital      Total  
     (In Thousands)  

Change in period:

         

a.   Federal income taxes paid in prior years recoverable through loss carrybacks

    $ —       $ (97 )     $ (97 ) 

b.  Adjusted gross DTAs expected to be realized (excluding the amount of DTAs from (a) above) after application of the threshold limitation

      (156 )       73        (83 ) 

1.  Adjusted gross DTAs expected to be realized following the balance sheet date

      (156 )       73        (83 ) 

2.  Adjusted gross DTAs allowed per limitation threshold

      xxxx        xxxx        572  

c.   Adjusted gross DTAs (excluding the amount of DTAs from (a) and (b) above) offset by gross DTLs

      (334 )       —         (334 ) 
  

 

 

     

 

 

     

 

 

  

d.  DTAs admitted as a result of SSAP No. 101

    $ (490 )     $ (24 )     $ (514 ) 
  

 

 

     

 

 

     

 

 

  

 

     December 31,  
     2023     2022  
     (In Thousands)  

Ratio percentage used to determine recovery period and threshold limitation amount

      3,673 %      3,224 % 

Amount of adjusted capital and surplus used to determine recovery period and threshold limitation

    $ 35,866     $ 32,054  

The Company has no DTLs that have not been recognized.

The Company’s tax planning strategies do not include the use of reinsurance.

 

33

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

7. Income Taxes (continued)

 

The impact of tax planning strategies is as follows:

 

     December 31, 2023  
     Ordinary     Capital     Total  

Current Period:

   

a.   Adjusted gross DTAs (% of total adjusted gross DTAs)

      0.00 %      37.00 %      5.20 % 

b.  Net admitted adjusted gross DTAs (% of total net admitted adjusted gross DTAs)

      0.00 %      91.80 %      14.80 % 

 

     December 31, 2022  
     Ordinary     Capital     Total  

Prior Period:

   

a.   Adjusted gross DTAs (% of total adjusted gross DTAs)

      0.00 %      0.00 %      0.00 % 

b.  Net admitted adjusted gross DTAs (% of total net admitted adjusted gross DTAs)

      0.00 %      92.80 %      12.30 % 

 

     Change Between December 31, 2023 and 2022  
     Ordinary     Capital     Total  

Change in Period:

   

a.   Adjusted gross DTAs (% of total adjusted gross DTAs)

      0.00 %      37.00 %      5.20 % 

b.  Net admitted adjusted gross DTAs (% of total net admitted adjusted gross DTAs)

      0.00 %      (1.00 )%      2.50 % 

Current income taxes incurred and deferred income taxes consist of the following major components as of December 31:

 

     2023      2022      Change  
     (In Thousands)  

1. Current income tax:

         

a. Federal

    $ 1,489      $ 126      $ 1,363  

b. Federal income tax on capital gains

      (704 )       (1,199 )       495  

c. Other

      —         —         —   
  

 

 

     

 

 

     

 

 

  

d. Federal income taxes incurred

    $ 785      $ (1,073 )     $ 1,858  
  

 

 

     

 

 

     

 

 

  

 

34

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

7. Income Taxes (continued)

 

     2023      2022      Change  
     (In Thousands)  

2. Deferred tax assets:

         

a. Ordinary:

         

1. Policyholder reserves

    $ 2,309      $ 2,414      $ (105 ) 

2. Investments

      —         —         —   

3. Deferred acquisition costs

      121        164        (43 ) 

4. Other (incl. items < 5% ordinary tax assets)

      27        21        6  
  

 

 

     

 

 

     

 

 

  

Subtotal

      2,457        2,599        (142 ) 

b. Statutory valuation allowance adjustment

      —         —         —   

c. Nonadmitted

      1,602        1,254        348  
  

 

 

     

 

 

     

 

 

  

d. Admitted ordinary deferred tax asset

      855        1,345        (490 ) 

e. Capital:

         

1. Investments

      406        400        6  

2. Other (incl. items < 5% ordinary tax assets)

      —         —         —   
  

 

 

     

 

 

     

 

 

  

Subtotal

      406        400        6  

f. Statutory valuation allowance adjustment

      —         —         —   

g. Nonadmitted

      242        212        30  
  

 

 

     

 

 

     

 

 

  

h. Admitted capital deferred tax asset

      164        188        (24 ) 
  

 

 

     

 

 

     

 

 

  

i. Admitted deferred tax assets

      1,019        1,533        (514 ) 
  

 

 

     

 

 

     

 

 

  

 

     2023      2022      Change  
     (In Thousands)  

3. Deferred tax liabilities:

         

a. Ordinary:

         

1. Investments

    $   288      $ 391      $ (103 ) 

2. Policyholder reserves

      462        693        (231 ) 

3. Other (incl. items < 5% ordinary tax assets)

      —         —         —   
  

 

 

     

 

 

     

 

 

  

Subtotal

      750        1,084        (334 ) 

b. Capital:

         

1. Investments

      14        14        —   

2. Other (incl. items < 5% ordinary tax assets)

      —         —         —   
  

 

 

     

 

 

     

 

 

  

Subtotal

      14        14        —   
  

 

 

     

 

 

     

 

 

  

c. Deferred tax liabilities

      764        1,098        (334 ) 
  

 

 

     

 

 

     

 

 

  

4. Net deferred tax assets/liabilities

    $ 255      $ 435      $ (180 ) 
  

 

 

     

 

 

     

 

 

  

 

35

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

7. Income Taxes (continued)

 

The most significant book to tax adjustments for the years ended December 31, 2023 and 2022, were as follows:

 

     2023     2022     2021  
     Amount     Effective
Tax
Rate		     Amount     Effective
Tax
Rate		     Amount     Effective
Tax
Rate		  
     (In Thousands)  

Provision computed at statutory rate

    $ 367       21.0 %    $ (754 )      21.0 %    $ (677 )      21.0 % 

Dividend received deduction

      (66 )      (3.8 )%      (88 )      2.5       (103 )      3.2  

Tax exempt interest

      (51 )      (2.9 )%      (31 )      0.8       (25 )      0.8  

Interest maintenance reserves

      113       6.5 %      (3 )      0.1       (31 )      1.0  

Prior year return to provision

      —        —  %      3       (0.1 )      (29 )      0.9  

Statutory reserve strengthening

      —        —  %      —        —        —        —   

Change in non-admitted assets

      (6 )      (0.4 )%      1       —        (16 )      0.4  

Other adjustments

      40       2.3 %      1       —        1       —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total statutory income taxes

    $ 397       22.7 %    $ (871 )      24.3 %    $ (880 )      27.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Federal income taxes incurred

    $ 785       44.9 %    $ (1,073 )      29.9 %    $ 289       (8.9 )% 

Change in net deferred income taxes

      (388 )      (22.2 )%      202       (5.6 )      (1,169 )      36.2  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total statutory income taxes

    $ 397       22.7 %    $ (871 )      24.3 %    $ (880 )      27.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The Company recognizes interest and penalties accrued related to the unrecognized tax benefits in interest expense. The Company did not have any interest and penalties recorded for the years ended December 31, 2023 and 2022.

The Company did not record any tax contingencies as of December 31, 2023, and 2022.

8. Fair Value Information

In accordance with SSAP No. 100R, Fair Value Measurements, the Company groups its financial assets and liabilities measured at fair value into three levels based on the inputs and assumptions used to determine the fair value. These levels are as follows:

Level 1 – Valuations are based on unadjusted quoted prices for identical instruments traded in active markets.

 

36

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

8. Fair Value Information (continued)

 

Level 2 – Valuations are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which significant assumptions are observable in the market.

Level 3 – Valuations are generated from techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of discounted cash flow models and spread-based models and similar techniques using the best information available in the circumstances.

Determination of Fair Value

Under SSAP No. 100R, the Company bases fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements in accordance with the fair value hierarchy in SSAP No. 100R.

Assets and Liabilities Measured and Reported at Fair Value

Cash equivalents

Cash equivalents include money market mutual funds. Fair values are determined using unadjusted quoted prices for identical instruments traded in active markets and are included in Level 1.

Preferred stocks

Level 2 securities are primarily preferred stocks valued using pricing for similar securities, recently executed transactions, broker/dealer quotes and other pricing models utilizing market observable inputs.

 

37

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

8. Fair Value Information (continued)

 

Separate account assets

Fair value of mutual funds within the separate accounts is determined using quoted prices in active markets for identical assets and is reflected in Level 1.

The following tables present assets measured and reported at fair value for the year ended December 31, 2023 and 2022 as follows:

 

     December 31, 2023  
            Fair Value Hierarchy Level  
     Fair Value      Level 1      Level 2      Level 3  
     (In Thousands)  

Cash equivalents

      2,738        2,738        —         —   

Preferred stocks

      1,969        —         1,969        —   

Separate account assets

      159,990        159,990        —         —   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

    $ 164,697      $ 162,728      $ 1,969      $ —   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     December 31, 2022  
            Fair Value Hierarchy Level  
     Fair Value      Level 1      Level 2      Level 3  
     (In Thousands)  

Cash equivalents

      14,109        14,109        —         —   

Preferred stocks

      2,605        —         2,605        —   

Separate account assets

      143,793        143,793        —         —   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

    $ 160,507      $ 157,902      $ 2,605      $ —   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

38

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

8. Fair Value Information (continued)

 

There were no Level 3 assets and liabilities measured and reported at fair value using significant unobservable inputs for the years ended December 31, 2023, and 2022.

There were no changes in Level 3 assets and liabilities measured and reported at fair value using significant unobservable inputs for the year ended December 31, 2023.

There were no changes in Level 3 purchases, issuances, sales and settlements for December 31, 2023.

There were no transfers into or out of Level 3 for the years ended December 31, 2023 and 2022. The transfers between levels are determined as of the end of the year for which the transfer was completed.

Quantitative Information about Level 3 Fair Value Measurements

The Company had no securities held at fair value for which the significant inputs used to determine fair value were unobservable as of December 31, 2023 and December 31, 2022.

SSAP No. 100R excludes certain insurance liabilities and nonfinancial instruments from its disclosure requirements. However, the liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk that minimizes exposure to changing interest rates through the matching of investment maturities with amounts due under insurance contracts. The fair value amounts presented herein do not include an amount for the value associated with customer or agent relationships, the expected interest margin (interest earnings in excess of interest credited) to be earned in the future on investment-type products, or other intangible items. Accordingly, the aggregate fair value amounts presented herein do not necessarily represent the underlying value of the Company; likewise, care should be exercised in deriving conclusions about the Company’s business or financial condition based on the fair value information presented herein.

 

39

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

8. Fair Value Information (continued)

 

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments not measured at fair value but for which fair value is disclosed:

Bonds – Bonds include fixed maturity securities and asset-backed securities. For fixed maturities not actively traded, the Company’s top priority is to obtain fair values from independent pricing services. The Company has regular interactions with its investment advisors to understand the pricing methodologies used and to confirm observable inputs are utilized to price. The pricing methodologies will vary based on the asset class and include inputs such as estimated cash flows, reported trades, broker quotes, credit quality, industry, and economic events. Fixed maturities with fair values obtained from pricing services, applicable market indices, or internal models with substantially all observable inputs. These assets are included in Level 2. The Company will obtain a broker quote or utilize an internal pricing model specific to the asset utilizing relevant market information if the Company is not able to utilize Level 1 or 2 sources. These assets are included in Level 3.

Preferred stock – Fair values of preferred stock are determined using quoted prices in active markets for identical assets when available, which are included in Level 1. When quoted prices are not available, the Company utilizes internal valuation methodologies appropriate for the specific asset that use observable inputs such as underlying share prices; therefore, the assets are included in Level 2. Fair values might also be determined using broker quotes or through the use of internal models or analysis that incorporates significant assumptions deemed appropriate given the circumstances and consistent with what other market participants would use when pricing such securities. These assets would be included in Level 3.

Policy loans – Fair values for policy loans are estimated using discounted cash flow analysis based on market interest rates for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations. These assets are included in Level 3.

Other invested assets – Other invested assets include surplus notes. The fair value of these instruments is based on the methodology described above for bonds.

Investment income due and accrued – The Company believes there is minimal risk of material changes in both credit of the issuer and interest rates such that the carrying value of investment income due and accrued approximates fair value. Generally, investment income due and accrued is classified as Level 2.

 

40

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

8. Fair Value Information (continued)

 

Investment-type insurance contracts – The fair values of the Company’s reserves and liabilities for investment-type insurance contracts are estimated using discounted cash flow analysis based on risk-free rates, nonperformance risk, and a risk margin. Investment-type insurance contracts include insurance, annuity, and other policy contracts that do not involve significant mortality or morbidity risk and are only a portion of the policyholder liabilities appearing in the balance sheets. Insurance contracts include insurance, annuity, and other policy contracts that involve significant mortality or morbidity risk. The fair values for insurance contracts, other than investment-type contracts, are not required to be disclosed. These liabilities are included in Level 3.

Separate account liabilities – The fair values of the separate account liabilities are estimated based on the fair value of the related separate account assets, as these are considered to be pass-through contracts. As the applicable separate account assets are already reflected at fair value, any adjustments to the fair value of the block are assumed adjustments to the separate account liabilities. These liabilities are included in Level 1.

The following table provides the carrying amount, estimated fair value, and level within the fair value hierarchy of the Company’s financial instruments:

 

     December 31, 2023  
                 Fair Value Hierarchy Level  
     Carrying
Amount		     Fair Value     Level 1     Level 2      Level 3  
     (In Thousands)  

Assets (liabilities)

            

Bonds

    $ 417,249     $ 400,999     $ —      $ 336,209      $ 64,790  

Preferred stocks

      1,969       1,969       —        1,969        —   

Short-term investments

      4,962       4,962       —        4,962        —   

Policy loans

      403       406       —        —         406  

Other invested assets

      1,942       1,954       —        1,954        —   

Investment income due and accrued

      3,413       3,413       —        3,413        —   

Investment type insurance contracts

      (41,278 )      (41,306 )           (41,306 ) 

Separate account liabilities

      (159,990 )      (159,990 )      (159,990 )      —         —   

 

41

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

8. Fair Value Information (continued)

 

     December 31, 2022  
                 Fair Value Hierarchy Level  
     Carrying
Amount		     Fair Value     Level 1     Level 2      Level 3  
     (In Thousands)  

Assets (liabilities)

            

Bonds

    $ 378,439       347,728     $ —      $ 288,791      $ 58,937  

Preferred stocks

      750       750       —        750        —   

Policy loans

      384       386       —        —         386  

Other invested assets

      1,825       1,832       —        1,832        —   

Investment income due and accrued

      2,918       2,918       —        2,918        —   

Investment type insurance contracts

      (51,725 )      (50,110 )           (50,110 ) 

Separate account liabilities

      (143,793 )      (143,793 )      (143,793 )      —         —   

 

42

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

9. Annuity and Deposit Liabilities

 

The withdrawal characteristics of the liability for future policy benefits for annuities and supplementary contracts and deposits were as follows:

 

     December 31, 2023  
     General Account      Separate
Account		      Total      Percentage  
     (Dollars in Thousands)  

Subject to discretionary withdrawal:

            

At book value, less current surrender charge of 5% or more

    $ 22,883      $ —       $ 22,883        4 % 

At fair value

      —         157,895        157,895        29 % 
  

 

 

     

 

 

     

 

 

     

 

 

  

Total with adjustment

      22,883        157,895        180,778        33 % 

At book value with minimum or no charge or adjustment

      234,987        —         234,987        43 % 

Additional actuarial reserve for Asset/liability analysis

      121,000        —         121,000        22 % 

Not subject to discretionary withdrawal

      9,074        1,307        10,381        2 % 
  

 

 

     

 

 

     

 

 

     

 

 

  

Subtotal

      387,944        159,202        547,146        100 % 
  

 

 

     

 

 

     

 

 

     

 

 

  

Less reinsurance ceded

      324,505        —         324,505     
  

 

 

     

 

 

     

 

 

     

Totals (net of reinsurance)

    $ 63,439      $ 159,202      $ 222,641     
  

 

 

     

 

 

     

 

 

     

Amount that will move to book value with minimal or no charge in the year after the statement date

    $ 13,980      $ —       $ 13,980     
  

 

 

     

 

 

     

 

 

     

 

43

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

9. Annuity and Deposit Liabilities (continued)

 

     December 31, 2022  
     General
Account		      Separate
Account		      Total      Percentage  
     (Dollars in Thousands)  

Subject to discretionary withdrawal:

            

At book value, less current surrender charge of 5% or more

    $ 31,502      $ —       $ 31,502        6 % 

At fair value

      —         142,049        142,049        25 % 
  

 

 

     

 

 

     

 

 

     

 

 

  

Total with adjustment

      31,502        142,049        173,551        31 % 

At book value with minimum or no charge or adjustment

      253,188        —         253,188        45 % 

Additional actuarial reserve for Asset/liability analysis

      121,000        —         121,000        22 % 

Not subject to discretionary withdrawal

      10,750        679        11,429        2 % 
  

 

 

     

 

 

     

 

 

     

 

 

  

Subtotal

      416,440        142,728        559,168        100 % 
  

 

 

     

 

 

     

 

 

     

 

 

  

Less reinsurance ceded

      340,663        —         340,663     
  

 

 

     

 

 

     

 

 

     

Totals (net of reinsurance)

    $ 75,777      $ 142,728      $ 218,505     
  

 

 

     

 

 

     

 

 

     

Amount that will move to book value with minimal or no charge in the year after the statement date

    $ 17,157      $ —       $ 17,157     
  

 

 

     

 

 

     

 

 

     

A reconciliation of total annuity actuarial reserves liabilities is as follows as of December 31:

 

     2023      2022  
     (In Thousands)  

Life and Accident and Health Annual Statement:

      

Annuity reserves, total net

    $ 63,439      $ 75,777  

Separate Accounts Annual Statement:

      

Annuities (excluding supplementary statements)

      159,202        142,728  
  

 

 

     

 

 

  

Total annuity actuarial reserves and deposit fund liabilities

    $ 222,641      $ 218,505  
  

 

 

     

 

 

  

Annually the Company completes the asset adequacy analysis of statutory reserves established for fixed and variable deferred annuities, net of reinsurance. This analysis was accomplished by running the seven deterministic interest rate scenarios and an additional 100 stochastic equity and interest rate scenarios in the cash flow testing model. The Cash Flow Testing reserve was $10.5 million as of December 31, 2023, 2022 and 2021.

 

44

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

10. Life Actuarial Reserves

The withdrawal characteristics of the liability for life insurance were as follows:

 

     2023      2022  
     General Account      General Account  
     Account
Value		      Cash
Value		      Reserve      Account
Value		      Cash
Value		      Reserve  
     (In Thousands)  

Subject to discretionary withdrawal, surrender values, or policy loans:

                  

Other Permanent Cash Value Life Insurance

    $ —       $ 58      $ 59      $ —       $ 62      $ 63  

Miscellaneous Reserves

      —         —         121,000        —         —         121,000  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total (gross: direct + assumed)

      —         58        121,059        —         62        121,063  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Reinsurance Ceded

         58        110,559           62        110,563  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total (net)

    $ —       $ —       $ 10,500      $ —       $ —       $ 10,500  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

The Company did not have any separates accounts supporting life insurance policies in 2023 or 2022.

11. Commitments and Contingencies

New York regulations allow for two alternatives methods of distributing ordinary dividends to shareholders, a “greater of” method and a “lesser of” method. The greater of method allows for a dividend to be paid from earned surplus when the aggregate amount of dividends paid in any calendar year does not exceed the greater of (a) 10% of its surplus to policyholders as of the immediately preceding calendar year or (b) its net gain from operations (not including realized capital gains) as of the immediately preceding calendar year, not to exceed 30% of its surplus to policyholders (as of the same preceding calendar year). If an insurer does not have sufficient positive earned surplus to pay an ordinary dividend under the “greater of” method, it may only distribute an ordinary dividend under the “lesser of” method. The lesser of method allows for a dividend to be paid from surplus when the aggregate amount of dividends paid in any calendar year does not exceed the lesser of (a) 10% of its surplus to policyholders or (b) its net gain from operations (not including realized capital gains), in each case as of the immediately preceding calendar year. Insurers are required to provide the superintendent with 10 days prior notice before paying an ordinary dividend. Furthermore, the Superintendent may, in his or her discretion, limit or disallow any ordinary dividends under the “greater of” method if the Superintendent determines

 

45

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

(Statutory Basis)

 

11. Commitments and Contingencies (continued)

that a domestic stock life insurer’s surplus to policyholders following any dividend distribution is not reasonable in relation to the insurer’s outstanding liabilities and not adequate to meet its financial needs or the insurer is financially distressed. Dividends that exceed the “greater of” or “lesser of” methods are deemed extraordinary and a notice must be filed with the Superintendent for approval.

Under the laws of the State of New York, the Company is required to maintain minimum statutory-basis capital and surplus of $6.0 million. Of this amount, $4.0 million, which is the Company’s minimum surplus to policyholders, must be invested in specific types of investments in accordance with New York law.

Other Legal and Regulatory Matters: The Company may be party to legal and arbitral proceedings, subject to complaints, and the like in the ordinary course of business, is periodically examined by its regulators in the ordinary course of business, and may discuss certain matters with its regulators that come up during such examinations or otherwise. Management currently does not believe that any litigation, arbitration, complaint or other such matter to which it is party, or that any actions by its regulators with respect to any such examinations or matters under discussion with them, will, alone or collectively, materially adversely affect the Company’s results of operations or financial condition.

12. Subsequent Events

Subsequent events have been evaluated through April 26, 2024, which is the date the financial statements were issued.

 

46

Table of Contents

Exhibits and Financial Statement Schedules

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Exhibits and Financial Statement Schedules

Years Ended December 31, 2023, 2022 and 2021

Contents

 

Report of Independent Auditors on Schedules

     49  

Exhibits and Financial Statement Schedules

   

Schedule I - Summary of Investments Other Than Investments in Related Parties as of December 31, 2023 and 2022

      50  

Schedule III - Supplementary Insurance Information as of December  31, 2023, 2022 and 2021 and for Each of the Years Then Ended

      52  

Schedule IV - Reinsurance as of December  31, 2023, 2022 and 2021 and for Each of the Years Then Ended

      53  

Table of Contents

Report of Independent Auditors

The Board of Directors

First Security Benefit Life Insurance and

Annuity Company of New York

We have audited the statutory-basis financial statements of First Security Benefit Life Insurance and Annuity Company of New York (the Company) as of December 31, 2023 and 2022, for each of the three years in the period ended December 31, 2023, and have issued our report thereon dated April 26, 2024 (included elsewhere in this Registration Statement). Our audits of the financial statements included the financial statement schedules listed in Item 24(a)(2) of this Registration Statement. These schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s schedules, based on our audits.

In our opinion, the schedules present fairly, in all material respects, the information set forth therein when considered in conjunction with the financial statements.

/s/ Ernst & Young LLP

Kansas City, Missouri

April 26, 2024

 

A member firm of Ernst & Young Global Limited    49   

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Schedule I - Summary of Investments

Other Than Investments in Related Parties

Years Ended December 31, 2023 and 2022

 

     2023  
     Cost      Value      Amount at which
shown in the
balance sheet		  
     (In Thousands)  

Fixed maturities:

         

Bonds:

         

U.S. Treasury securities and obligations of U.S. government corporations and agencies

    $ 425      $ 425      $ 425  

Obligations of government-sponsored enterprises

      41,901        41,298        41,901  

Corporate

      173,227        166,815        173,227  

Obligations of foreign governments

      500        428        500  

Municipal governments

      16,819        16,886        16,819  

Commercial mortgage-backed

      24,726        22,303        24,726  

Residential mortgage-backed

      30,370        29,275        30,370  

Collateralized loan obligations

      35,850        35,091        35,850  

Other asset backed

      51,143        47,928        51,143  
  

 

 

     

 

 

     

 

 

  

Total fixed maturities

      374,961        360,449        374,961  

Equity securities:

         

Preferred stock:

         

Consumer

      960        762        762  

Financial

      1,250        1,207        1,207  
  

 

 

     

 

 

     

 

 

  

Total equity securities

      2,210        1,969        1,969  

Policy loans

      403           403  

Cash and cash equivalents

      16,067           16,067  

Other invested assets

      2,034           2,034  
  

 

 

        

 

 

  
   $ 395,675         $ 395,434  
  

 

 

        

 

 

  

See accompanying Report of Independent Auditors

 

50

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Schedule I - Summary of Investments

Other Than Investments in Related Parties (continued)

 

     2022  
     Cost      Value      Amount at which
shown in the
balance sheet		  
     (In Thousands)  

Fixed maturities:

         

Bonds:

         

U.S. Treasury securities and obligations of U.S. government corporations and agencies

    $ 426      $ 425      $ 426  

Obligations of government-sponsored enterprises

      16,244        15,350        16,244  

Corporate

      174,825        159,487        174,825  

Obligations of foreign governments

      500        422        500  

Municipal governments

      14,268        13,884        14,268  

Commercial mortgage-backed

      30,944        28,704        30,944  

Residential mortgage-backed

      13,665        12,540        13,665  

Collateralized loan obligations

      85,500        80,156        85,500  

Other asset backed

      41,967        36,686        41,967  
  

 

 

     

 

 

     

 

 

  

Total fixed maturities

      378,339        347,654        378,339  

Equity securities:

         

Preferred stock:

         

Consumer

      2,250        1,519        1,519  

Financial

      2,250        1,905        1,836  
  

 

 

     

 

 

     

 

 

  

Total equity securities

      4,500        3,424        3,355  

Policy loans

      384           384  

Cash and cash equivalents

      14,109           14,109  

Other invested assets

      2,052           2,052  
  

 

 

        

 

 

  
   $ 399,384         $ 398,239  
  

 

 

        

 

 

  

See accompanying Report of Independent Auditors

 

51

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Schedule III - Supplementary Insurance Information

As of December 31, 2023, 2022 and 2021 and for Each of the Years Then Ended

 

     Future Policy
Benefits and
Claims		      Premiums and
other
considerations		      Net
Investment
Income(1)		      Benefit claims
and settlement
expenses		      Other
operating
expenses		  
     (In Thousands)  

2023

         

Life, health and annuity

    $ 63,440      $ 8,532      $ 4,351      $ 7,195      $ (213 ) 

2022

               

Life, health and annuity

    $ 75,777      $ 4,459      $ 3,580      $ 5,148      $ (5 ) 

2021

               

Life, health and annuity

    $ 81,787      $ 8,772      $ 2,965      $ 6,949      $ 1,436  

 

(1) 

Allocations of net investment income and certain operating expenses are based on a number of assumptions and estimates, and reported operating results would change if different methods were applied.

See accompanying Report of Independent Auditors

 

52

Table of Contents

First Security Benefit Life Insurance and Annuity Company of New York

Schedule IV - Reinsurance

As of December 31, 2023, 2022 and 2021 and for Each of the Years Then Ended

 

     2023  
     Gross amount      Ceded to other
companies		      Assumed from
companies		      Net amount      Percent of
amount
assumed to net		  
     (Dollars In Thousands)  

Life insurance in force

    $ 75      $ 75      $ —       $ —         0.00 % 

Premiums:

               

Annuity

      18,280        9,784        36        8,532        0.42  
  

 

 

     

 

 

     

 

 

     

 

 

     

Total premiums

    $ 18,280      $ 9,784      $ 36      $ 8,532        0.42 % 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

     2022  
     Gross amount      Ceded to other
companies		      Assumed from
companies		      Net amount      Percent of
amount
assumed to net		  
     (Dollars In Thousands)  

Life insurance in force

    $ 80      $ 80      $ —       $ —         0.00 % 

Premiums:

               

Annuity

      24,612        20,153        —         4,459        0.00  
  

 

 

     

 

 

     

 

 

     

 

 

     

Total premiums

    $ 24,612      $ 20,153      $ —       $ 4,459        0.00 % 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

     2021  
     Gross amount      Ceded to other
companies		      Assumed from
companies		      Net amount      Percent of
amount
assumed to net		  
     (Dollars In Thousands)  

Life insurance in force

    $ 82      $ 82      $ —       $ —         0.00 % 

Premiums:

               

Annuity

      23,940        15,185        17        8,772        0.19  
  

 

 

     

 

 

     

 

 

     

 

 

     

Total premiums

    $ 23,940      $ 15,185      $ 17      $ 8,772        0.19 % 
  

 

 

     

 

 

     

 

 

     

 

 

     

See accompanying Report of Independent Auditors

 

53

Table of Contents

FINANCIAL STATEMENTS

Variable Annuity Account B

Year Ended December 31, 2023

With Report of Independent Registered Public Accounting Firm

Table of Contents

Variable Annuity Account B

Financial Statements

Year Ended December 31, 2023

Contents

 

Report of Independent Registered Public Accounting Firm

     1  

Audited Financial Statements

   

Statements of Net Assets

      6  

Statements of Operations and Change in Net Assets

      9  

Notes to Financial Statements

      39  

1. Organization and Significant Accounting Policies

      39  

2. Variable Annuity Contract Charges

      46  

3. Summary of Unit Transactions

      48  

4. Financial Highlights

      51  

5. Subsequent Events

      69  

Table of Contents

Report of Independent Registered Public Accounting Firm

To the Board of Directors of First Security Benefit Life Insurance and Annuity Company of New York and Contract Owners of Variable Annuity Account B

Opinion on the Financial Statements

We have audited the accompanying statements of net assets of each of the subaccounts listed in the Appendix that comprise Variable Annuity Account B (the Separate Account), as of December 31, 2023 and the related statements of operations and 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 Separate 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 Separate 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.

/s/ Ernst & Young LLP

We have served as the Separate Account’s auditor since 1996.

Kansas City, Missouri

April 26, 2024

 

1

Table of Contents

Appendix

Subaccounts listed that comprising Variable Annuity Account B

 

Subaccounts

   

Statements of operations and changes in net assets

AB VPS Discovery Value Portfolio    For each of the two years in the period ended December 31, 2023
AB VPS Dynamic Asset Allocation    For each of the two years in the period ended December 31, 2023
American Century VP Mid Cap Value    For each of the two years in the period ended December 31, 2023
American Century VP Ultra®    For each of the two years in the period ended December 31, 2023
American Century VP Value    For each of the two years in the period ended December 31, 2023
American Funds IS® Asset Allocation    For each of the two years in the period ended December 31, 2023
American Funds IS® Capital World Bond    For each of the two years in the period ended December 31, 2023
American Funds IS® Global Growth    For each of the two years in the period ended December 31, 2023
American Funds IS® Growth-Income    For each of the two years in the period ended December 31, 2023
American Funds IS® International    For each of the two years in the period ended December 31, 2023
American Funds IS® New World    For each of the two years in the period ended December 31, 2023
BlackRock Equity Dividend V.I.    For each of the two years in the period ended December 31, 2023
BlackRock Global Allocation V.I.    For each of the two years in the period ended December 31, 2023
BlackRock High Yield V.I.    For each of the two years in the period ended December 31, 2023
BNY Mellon IP MidCap Stock    For each of the two years in the period ended December 31, 2023
BNY Mellon IP Small Cap Stock Index    For each of the two years in the period ended December 31, 2023
BNY Mellon IP Technology Growth    For each of the two years in the period ended December 31, 2023
BNY Mellon VIF Appreciation    For each of the two years in the period ended December 31, 2023
ClearBridge Variable Aggressive Growth    For each of the two years in the period ended December 31, 2023
ClearBridge Variable Small Cap Growth    For each of the two years in the period ended December 31, 2023
Delaware Ivy VIP Asset Strategy    For each of the two years in the period ended December 31, 2023

 

2

Table of Contents

Subaccounts

   

Statements of operations and changes in net assets

Fidelity® VIP Equity-Income    For each of the two years in the period ended December 31, 2023
Fidelity® VIP Growth & Income    For each of the two years in the period ended December 31, 2023
Fidelity® VIP Growth Opportunities    For each of the two years in the period ended December 31, 2023
Fidelity® VIP High Income    For each of the two years in the period ended December 31, 2023
Fidelity® VIP Overseas    For each of the two years in the period ended December 31, 2023
Franklin Allocation VIP Fund    For each of the two years in the period ended December 31, 2023
Franklin Income VIP Fund    For each of the two years in the period ended December 31, 2023
Franklin Mutual Global Discovery VIP Fund    For each of the two years in the period ended December 31, 2023
Franklin Small Cap Value VIP Fund    For each of the two years in the period ended December 31, 2023
Franklin Strategic Income VIP Fund    For each of the two years in the period ended December 31, 2023
Guggenheim VIF All Cap Value    For each of the two years in the period ended December 31, 2023
Guggenheim VIF Alpha Opportunity    For each of the two years in the period ended December 31, 2023
Guggenheim VIF Floating Rate Strategies    For each of the two years in the period ended December 31, 2023
Guggenheim VIF Global Managed Futures Strategy    For each of the two years in the period ended December 31, 2023
Guggenheim VIF High Yield    For each of the two years in the period ended December 31, 2023
Guggenheim VIF Large Cap Value    For each of the two years in the period ended December 31, 2023
Guggenheim VIF Long Short Equity    For each of the two years in the period ended December 31, 2023
Guggenheim VIF Managed Asset Allocation    For each of the two years in the period ended December 31, 2023
Guggenheim VIF Multi-Hedge Strategies    For each of the two years in the period ended December 31, 2023
Guggenheim VIF Small Cap Value    For each of the two years in the period ended December 31, 2023
Guggenheim VIF SMid Cap Value    For each of the two years in the period ended December 31, 2023
Guggenheim VIF StylePlus Large Core    For each of the two years in the period ended December 31, 2023
Guggenheim VIF StylePlus Large Growth    For each of the two years in the period ended December 31, 2023

 

3

Table of Contents

Subaccounts

   

Statements of operations and changes in net assets

Guggenheim VIF StylePlus Mid Growth    For each of the two years in the period ended December 31, 2023
Guggenheim VIF StylePlus Small Growth    For each of the two years in the period ended December 31, 2023
Guggenheim VIF Total Return Bond    For each of the two years in the period ended December 31, 2023
Guggenheim VIF World Equity Income    For each of the two years in the period ended December 31, 2023
Invesco V.I. American Value    For each of the two years in the period ended December 31, 2023
Invesco V.I. Comstock    For each of the two years in the period ended December 31, 2023
Invesco V.I. Core Plus Bond    For the year ended December 31, 2023 and the period from April 29, 2022 (commencement of operations) through December 31, 2022
Invesco V.I. Discovery Mid Cap Growth    For each of the two years in the period ended December 31, 2023
Invesco V.I. Equity and Income    For each of the two years in the period ended December 31, 2023
Invesco V.I. EVQ International Equity Fund    For each of the two years in the period ended December 31, 2023
Invesco V.I. Global    For each of the two years in the period ended December 31, 2023
Invesco V.I. Global Real Estate    For each of the two years in the period ended December 31, 2023
Invesco V.I. Government Money Market    For each of the two years in the period ended December 31, 2023
Invesco V.I. Government Securities    For each of the two years in the period ended December 31, 2023
Invesco V.I. Health Care    For each of the two years in the period ended December 31, 2023
Invesco V.I. Main Street Mid Cap Fund®    For each of the two years in the period ended December 31, 2023
Invesco V.I. Main Street Small Cap Fund®    For each of the two years in the period ended December 31, 2023
Janus Henderson VIT Enterprise    For each of the two years in the period ended December 31, 2023
Janus Henderson VIT Research    For each of the two years in the period ended December 31, 2023
Lord Abbett Series Bond-Debenture VC    For each of the two years in the period ended December 31, 2023
Lord Abbett Series Developing Growth VC    For each of the two years in the period ended December 31, 2023
LVIP JPMorgan Core Bond Fund    For each of the two years in the period ended December 31, 2023
MFS® VIT II Research International    For each of the two years in the period ended December 31, 2023

 

4

Table of Contents

Subaccounts

   

Statements of operations and changes in net assets

MFS® VIT Total Return    For each of the two years in the period ended December 31, 2023
MFS® VIT Utilities    For each of the two years in the period ended December 31, 2023
Morgan Stanley VIF Emerging Markets Equity    For each of the two years in the period ended December 31, 2023
Morningstar Aggressive Growth ETF Asset Allocation Portfolio    For each of the two years in the period ended December 31, 2023
Morningstar Balanced ETF Asset Allocation Portfolio    For each of the two years in the period ended December 31, 2023
Morningstar Conservative ETF Asset Allocation Portfolio    For each of the two years in the period ended December 31, 2023
Morningstar Growth ETF Asset Allocation Portfolio    For each of the two years in the period ended December 31, 2023
Morningstar Income and Growth ETF Asset Allocation Portfolio    For each of the two years in the period ended December 31, 2023
Neuberger Berman AMT Sustainable Equity    For each of the two years in the period ended December 31, 2023
PIMCO VIT All Asset    For each of the two years in the period ended December 31, 2023
PIMCO VIT Commodity Real Return Strategy    For each of the two years in the period ended December 31, 2023
PIMCO VIT Emerging Markets Bond    For each of the two years in the period ended December 31, 2023
PIMCO VIT International Bond Portfolio (U.S. Dollar-Hedged)    For each of the two years in the period ended December 31, 2023
PIMCO VIT Low Duration    For each of the two years in the period ended December 31, 2023
PIMCO VIT Real Return    For each of the two years in the period ended December 31, 2023
PIMCO VIT Total Return    For each of the two years in the period ended December 31, 2023
Putnam VT Small Cap Value    For each of the two years in the period ended December 31, 2023
Royce Micro-Cap    For each of the two years in the period ended December 31, 2023
T. Rowe Price Health Sciences    For each of the two years in the period ended December 31, 2023
Templeton Developing Markets VIP Fund    For each of the two years in the period ended December 31, 2023
Templeton Global Bond VIP Fund    For each of the two years in the period ended December 31, 2023
Western Asset Variable Global High Yield Bond    For each of the two years in the period ended December 31, 2023

 

5

Table of Contents

Variable Annuity Account B

Statements of Net Assets

December 31, 2023

 

Subaccount

   Number
of Shares		     Cost     Assets at
Market
Value		     Investment
Income
Receivable		     Net Assets     Units
Outstanding		     Range of
Unit Values		  

AB VPS Discovery Value Portfolio (a)

     8,070     $ 149,599     $ 140,749     $ —      $ 140,749       10,209     $ 13.79     $ 13.79  

AB VPS Dynamic Asset Allocation

     4,397       49,241       39,137       —        39,137       4,162       9.40       9.40  

American Century VP Mid Cap Value

     29,553       574,958       575,388       —        575,388       30,043       19.17       19.17  

American Century VP Ultra®

     204,056       3,931,848       5,032,018       —        5,032,018       127,088       35.03       39.71  

American Century VP Value

     99,600       1,055,848       1,216,119       —        1,216,119       46,685       23.08       26.16  

American Funds IS® Asset Allocation

     74,975       1,726,751       1,749,919       —        1,749,919       129,291       13.54       13.54  

American Funds IS® Capital World Bond

     6,595       77,433       65,162       —        65,162       9,637       6.76       6.76  

American Funds IS® Global Growth

     81,469       2,491,931       2,694,981       —        2,694,981       156,215       17.25       17.25  

American Funds IS® Growth-Income

     22,350       1,091,338       1,281,527       —        1,281,527       68,153       18.81       18.81  

American Funds IS® International

     13,142       245,071       225,114       —        225,114       23,898       9.42       9.42  

American Funds IS® New World

     5,838       148,926       145,661       —        145,661       13,480       10.81       10.81  

BlackRock Equity Dividend V.I.

     76,804       874,527       814,126       —        814,126       51,597       15.78       15.78  

BlackRock Global Allocation V.I.

     21,848       307,874       284,681       —        284,681       26,304       10.82       10.82  

BlackRock High Yield V.I.

     28,911       204,497       197,750       1,023       198,773       19,546       10.17       10.17  

BNY Mellon IP MidCap Stock

     5,972       116,066       110,831       —        110,831       8,142       13.67       13.67  

BNY Mellon IP Small Cap Stock Index

     53,911       974,249       1,001,662       —        1,001,662       65,073       15.40       15.40  

BNY Mellon IP Technology Growth

     74,006       1,730,613       1,862,730       —        1,862,730       53,650       30.92       34.84  

BNY Mellon VIF Appreciation

     10,643       383,169       364,855       —        364,855       19,246       18.96       18.96  

ClearBridge Variable Aggressive Growth

     55,002       1,243,558       910,838       —        910,838       50,263       16.07       18.14  

ClearBridge Variable Small Cap Growth

     14,898       402,040       407,451       —        407,451       17,472       20.55       23.33  

Delaware Ivy VIP Asset Strategy

     8,750       77,011       76,650       —        76,650       7,570       10.12       10.12  

Fidelity® VIP Equity-Income

     19,753       445,202       472,305       —        472,305       31,484       14.95       14.95  

Fidelity® VIP Growth & Income

     38,706       817,113       1,010,989       —        1,010,989       57,004       17.74       17.74  

Fidelity® VIP Growth Opportunities

     28,758       1,434,976       1,667,660       —        1,667,660       56,124       29.72       29.72  

Fidelity® VIP High Income

     147,497       743,037       646,037       —        646,037       70,205       9.20       9.20  

Fidelity® VIP Overseas

     16,356       355,766       417,242       —        417,242       36,833       11.33       11.33  

Franklin Allocation VIP Fund

     48,222       300,203       245,933       —        245,933       21,007       11.71       11.71  

Franklin Income VIP Fund

     41,876       635,182       594,645       —        594,645       49,420       11.49       12.06  

Franklin Mutual Global Discovery VIP Fund

     51,885       949,160       953,642       —        953,642       70,167       12.39       13.59  

Franklin Small Cap Value VIP Fund

     12,710       192,573       168,666       —        168,666       10,252       16.41       16.41  

Franklin Strategic Income VIP Fund

     11,314       114,750       101,937       —        101,937       12,609       8.09       8.09  

Guggenheim VIF All Cap Value

     8,683       256,451       284,983       —        284,983       12,219       23.32       23.32  

 

(a)

Name change. See Note 1.

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

 

6

Table of Contents

Variable Annuity Account B

Statements of Net Assets (continued)

December 31, 2023

 

Subaccount

   Number
of Shares		     Cost     Assets at
Market
Value		     Investment
Income
Receivable		     Net Assets     Units
Outstanding		     Range of
Unit Values		  

Guggenheim VIF Alpha Opportunity

     4,145     $ 69,818     $ 68,514     $ —      $ 68,514       4,183     $ 16.35     $ 16.35  

Guggenheim VIF Floating Rate Strategies

     49,101       1,264,497       1,244,227       —        1,244,227       129,870       9.58       9.58  

Guggenheim VIF Global Managed Futures Strategy

     4,180       71,430       71,764       —        71,764       14,203       5.05       5.05  

Guggenheim VIF High Yield

     32,295       876,741       792,191       —        792,191       25,800       15.22       32.76  

Guggenheim VIF Large Cap Value

     16,380       593,814       655,522       —        655,522       35,305       18.58       18.70  

Guggenheim VIF Long Short Equity

     4,442       63,655       75,375       —        75,375       5,784       11.70       13.26  

Guggenheim VIF Managed Asset Allocation

     15,329       434,628       445,612       —        445,612       31,873       13.97       14.05  

Guggenheim VIF Multi-Hedge Strategies

     3,634       91,593       94,078       —        94,078       15,393       5.69       6.15  

Guggenheim VIF Small Cap Value

     9,182       372,930       396,377       —        396,377       9,719       26.88       40.78  

Guggenheim VIF SMid Cap Value

     16,994       1,130,608       1,226,092       —        1,226,092       27,861       29.84       44.30  

Guggenheim VIF StylePlus Large Core

     14,201       561,589       578,704       —      $ 578,704       39,308       14.41       17.51  

Guggenheim VIF StylePlus Large Growth

     10,059       180,489       191,214       —        191,214       10,640       17.93       21.54  

Guggenheim VIF StylePlus Mid Growth

     58,041       2,991,014       2,665,245       —        2,665,245       147,591       18.05       19.08  

Guggenheim VIF StylePlus Small Growth

     39,654       1,253,376       1,059,957       —        1,059,957       92,653       11.44       19.60  

Guggenheim VIF Total Return Bond

     110,472       1,758,868       1,589,687       —        1,589,687       163,483       7.85       9.70  

Guggenheim VIF World Equity Income

     46,520       563,826       629,419       —        629,419       48,983       12.84       14.35  

Invesco V.I. American Value

     10,808       177,124       148,399       —        148,399       13,819       10.74       10.74  

Invesco V.I. Comstock

     16,204       285,132       317,275       —        317,275       16,388       16.32       19.49  

Invesco V.I. Core Plus Bond

     37,098       214,445       210,344       —        210,344       22,279       9.44       9.44  

Invesco V.I. Discovery Mid Cap Growth

     6,475       421,782       349,688       —        349,688       20,682       16.91       16.91  

Invesco V.I. Equity and Income

     44,857       758,565       733,868       —        733,868       44,256       13.94       16.60  

Invesco V.I. EVQ International Equity Fund

     10,342       346,730       346,134       —        346,134       20,951       14.91       16.80  

Invesco V.I. Global

     17,807       677,327       632,148       —        632,148       41,401       15.25       15.25  

Invesco V.I. Global Real Estate

     34,628       545,990       484,103       —        484,103       26,652       16.02       18.16  

Invesco V.I. Government Money Market

     622,298       622,298       622,298       —        622,298       75,825       7.85       8.22  

Invesco V.I. Government Securities

     61,099       703,863       625,048       —        625,048       87,328       7.14       7.14  

Invesco V.I. Health Care

     7,597       213,921       196,844       —        196,844       8,078       21.87       24.79  

Invesco V.I. Main Street Mid Cap Fund®

     12,689       126,926       119,149       —        119,149       5,335       19.75       22.39  

Invesco V.I. Main Street Small Cap Fund®

     7,817       186,742       205,598       —        205,598       5,642       32.40       36.73  

Janus Henderson VIT Enterprise

     30,101       2,035,290       2,057,994       —        2,057,994       74,144       27.77       27.77  

Janus Henderson VIT Research

     24,010       822,857       1,033,863       —        1,033,863       42,626       24.23       24.23  

Lord Abbett Series Bond-Debenture VC

     16,506       199,668       170,338       —        170,338       17,901       9.50       9.50  

Lord Abbett Series Developing Growth VC

     8,723       304,499       209,011       —        209,011       14,769       14.14       14.14  

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

 

7

Table of Contents

Variable Annuity Account B

Statements of Net Assets (continued)

December 31, 2023

 

Subaccount

   Number
of Shares		     Cost     Assets at
Market
Value		     Investment
Income
Receivable		     Net Assets     Units
Outstanding		     Range of
Unit Values		  

LVIP JPMorgan Core Bond Fund (a)

     11,518     $ 126,592     $ 112,262     $ —      $ 112,262       14,190     $ 7.94     $ 7.94  

MFS® VIT II Research International

     14,842       230,010       246,824       —        246,824       24,526       7.77       10.06  

MFS® VIT Total Return

     34,442       760,356       781,139       —        781,139       54,139       14.40       14.40  

MFS® VIT Utilities

     18,204       569,320       574,166       —        574,166       28,848       13.53       20.48  

Morgan Stanley VIF Emerging Markets Equity

     20,451       289,440       262,790       —        262,790       37,305       5.88       7.05  

Morningstar Aggressive Growth ETF Asset Allocation Portfolio

     16,127       202,407       222,224       —        222,224       16,535       13.44       13.44  

Morningstar Balanced ETF Asset Allocation Portfolio

     30,991       340,611       321,994       —        321,994       29,117       11.06       11.06  

Morningstar Conservative ETF Asset Allocation Portfolio

     2,530       26,809       25,068       —        25,068       2,950       8.52       8.52  

Morningstar Growth ETF Asset Allocation Portfolio

     18,972       214,995       215,142       —        215,142       17,298       12.44       12.44  

Morningstar Income and Growth ETF Asset Allocation Portfolio

     11,905       126,059       117,266       —        117,266       12,003       9.78       9.78  

Neuberger Berman AMT Sustainable Equity

     17,337       407,473       580,616       —        580,616       17,185       30.24       33.66  

PIMCO VIT All Asset

     11,166       115,438       101,054       —        101,054       7,605       12.20       13.83  

PIMCO VIT CommodityRealReturn Strategy

     33,995       232,185       181,873       —        181,873       36,557       4.37       5.03  

PIMCO VIT Emerging Markets Bond

     2,748       34,520       28,995       —        28,995       2,803       9.77       10.34  

PIMCO VIT International Bond Portfolio (U.S. Dollar-Hedged)

     32,525       338,380       319,725       —        319,725       29,949       9.85       10.73  

PIMCO VIT Low Duration

     29,163       293,171       279,960       —        279,960       37,977       6.54       7.41  

PIMCO VIT Real Return

     86,445       1,101,006       1,000,165       —        1,000,165       100,372       8.79       9.96  

PIMCO VIT Total Return

     44,179       463,719       405,561       —        405,561       50,653       8.01       8.01  

Putnam VT Small Cap Value

     1,823       22,751       20,835       —        20,835       1,403       14.85       14.85  

Royce Micro-Cap

     18,452       176,916       169,206       —        169,206       12,576       10.99       13.49  

T. Rowe Price Health Sciences

     28,580       1,368,911       1,481,854       —        1,481,854       77,322       19.15       19.15  

Templeton Developing Markets VIP Fund

     20,427       175,397       168,117       —        168,117       18,688       8.99       8.99  

Templeton Global Bond VIP Fund

     148,084       2,115,032       1,901,403       —        1,901,403       294,954       6.45       6.45  

Western Asset Variable Global High Yield Bond

     3,686       27,707       23,075       —        23,075       2,250       10.12       10.38  

 

(a)

Name change. See Note 1.

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

 

8

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets

Years Ended December 31, 2023 and 2022, Except as Noted

 

     AB VPS Discovery
Value Portfolio (a)		     AB VPS Dynamic
Asset Allocation		     American Century
VP Mid Cap Value		  

Net assets as of December 31, 2021

    $ 150,748     $ 46,311     $ 596,603  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      1,287       1,004       12,161  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (1,026 )      (296 )      (4,335 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      261       708       7,826  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      23,169       12,746       75,328  

Realized capital gain (loss) on investments

      (4,261 )      (430 )      6,033  

Change in unrealized appreciation (depreciation)

      (44,021 )      (21,885 )      (101,523 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (25,113 )      (9,569 )      (20,162 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (24,852 )      (8,861 )      (12,336 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      21,760       120       8,690  

Terminations, withdrawals and annuity payments

      (13,811 )      (1,484 )      (39,544 ) 

Transfers between subaccounts, net

      (9,895 )      —        24,490  

Maintenance charges and mortality adjustments

      (538 )      (242 )      (1,007 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (2,484 )      (1,606 )      (7,371 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (27,336 )      (10,467 )      (19,707 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 123,412     $ 35,844     $ 576,896  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      1,076       225       11,939  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (980 )      (278 )      (4,144 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      96       (53 )      7,795  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      11,317       —        60,319  

Realized capital gain (loss) on investments

      (617 )      (497 )      3,805  

Change in unrealized appreciation (depreciation)

      9,538       5,001       (41,428 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      20,238       4,504       22,696  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      20,334       4,451       30,491  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      3,773       10       7,639  

Terminations, withdrawals and annuity payments

      (7,217 )      (943 )      (7,815 ) 

Transfers between subaccounts, net

      803       (4 )      (30,846 ) 

Maintenance charges and mortality adjustments

      (356 )      (221 )      (977 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (2,997 )      (1,158 )      (31,999 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      17,337       3,293       (1,508 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 140,749     $ 39,137     $ 575,388  
  

 

 

    

 

 

    

 

 

  

 

(a)

Name change. See Note 1.

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

 

9

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     American Century
VP Ultra®		     American Century
VP Value		     American Funds
IS® Asset
Allocation		  

Net assets as of December 31, 2021

    $ 5,423,905     $ 1,289,872     $ 2,831,316  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      —        23,455       37,974  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (32,688 )      (9,214 )      (17,658 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (32,688 )      14,241       20,316  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      471,464       97,226       246,592  

Realized capital gain (loss) on investments

      38,836       30,401       (3,729 ) 

Change in unrealized appreciation (depreciation)

      (2,279,332 )      (147,877 )      (656,873 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (1,769,032 )      (20,250 )      (414,010 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (1,801,720 )      (6,009 )      (393,694 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      186,461       26,010       120,598  

Terminations, withdrawals and annuity payments

      (170,608 )      (99,136 )      (381,381 ) 

Transfers between subaccounts, net

      117,116       (834 )      (127,271 ) 

Maintenance charges and mortality adjustments

      (19,592 )      (4,175 )      (14,028 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      113,377       (78,135 )      (402,082 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (1,688,343 )      (84,144 )      (795,776 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 3,735,562     $ 1,205,728     $ 2,035,540  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      —        27,560       34,986  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (34,476 )      (9,346 )      (14,366 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (34,476 )      18,214       20,620  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      337,066       95,252       75,724  

Realized capital gain (loss) on investments

      74,840       14,985       (21,770 ) 

Change in unrealized appreciation (depreciation)

      1,192,467       (37,437 )      152,247  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      1,604,373       72,800       206,201  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      1,569,897       91,014       226,821  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      29,671       36,446       14,991  

Terminations, withdrawals and annuity payments

      (162,317 )      (82,154 )      (522,405 ) 

Transfers between subaccounts, net

      (122,251 )      (31,722 )      14,028  

Maintenance charges and mortality adjustments

      (18,544 )      (3,193 )      (19,056 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (273,441 )      (80,623 )      (512,442 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      1,296,456       10,391       (285,621 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 5,032,018     $ 1,216,119     $ 1,749,919  
  

 

 

    

 

 

    

 

 

  

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

 

10

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     American Funds
IS® Capital World
Bond		     American Funds
IS® Global Growth		     American Funds
IS® Growth-
Income		  

Net assets as of December 31, 2021

    $ 141,604     $ 3,269,653     $ 1,473,460  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      215       11,135       12,621  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (710 )      (19,042 )      (8,956 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (495 )      (7,907 )      3,665  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      1,688       287,717       119,589  

Realized capital gain (loss) on investments

      (12,936 )      16,431       25,351  

Change in unrealized appreciation (depreciation)

      (13,141 )      (1,141,753 )      (399,336 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (24,389 )      (837,605 )      (254,396 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (24,884 )      (845,512 )      (250,731 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      50       150,771       14,095  

Terminations, withdrawals and annuity payments

      (33,111 )      (234,161 )      (146,344 ) 

Transfers between subaccounts, net

      (19,149 )      52,089       16,093  

Maintenance charges and mortality adjustments

      (1,158 )      (11,150 )      (3,872 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (53,368 )      (42,451 )      (120,028 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (78,252 )      (887,963 )      (370,759 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 63,352     $ 2,381,690     $ 1,102,701  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      —        17,703       13,889  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (470 )      (19,024 )      (8,851 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (470 )      (1,321 )      5,038  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        198,905       62,912  

Realized capital gain (loss) on investments

      (519 )      5,516       9,902  

Change in unrealized appreciation (depreciation)

      4,195       287,049       185,601  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      3,676       491,470       258,415  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      3,206       490,149       263,453  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      —        38,690       25,634  

Terminations, withdrawals and annuity payments

      (1,371 )      (119,601 )      (86,083 ) 

Transfers between subaccounts, net

      256       (87,336 )      (21,803 ) 

Maintenance charges and mortality adjustments

      (281 )      (8,611 )      (2,375 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (1,396 )      (176,858 )      (84,627 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      1,810       313,291       178,826  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 65,162     $ 2,694,981     $ 1,281,527  
  

 

 

    

 

 

    

 

 

  

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

 

11

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     American Funds
IS® International		     American Funds
IS® New World		     BlackRock Equity
Dividend V.I.		  

Net assets as of December 31, 2021

    $ 355,484     $ 205,679     $ 765,420  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      4,274       1,864       11,508  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (2,128 )      (1,277 )      (5,845 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      2,146       587       5,663  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      40,291       16,536       94,562  

Realized capital gain (loss) on investments

      (8,003 )      (3,597 )      (8,155 ) 

Change in unrealized appreciation (depreciation)

      (110,352 )      (63,083 )      (139,043 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (78,064 )      (50,144 )      (52,636 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (75,918 )      (49,557 )      (46,973 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      1,250       1,449       21,469  

Terminations, withdrawals and annuity payments

      (50,478 )      (17,835 )      (91,236 ) 

Transfers between subaccounts, net

      30,881       13,662       156,158  

Maintenance charges and mortality adjustments

      (652 )      (409 )      (1,916 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (18,999 )      (3,133 )      84,475  
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (94,917 )      (52,690 )      37,502  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 260,567     $ 152,989     $ 802,922  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      2,384       1,770       14,235  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (1,852 )      (1,185 )      (5,978 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      532       585       8,257  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        —        38,534  

Realized capital gain (loss) on investments

      (15,139 )      (2,824 )      (12,099 ) 

Change in unrealized appreciation (depreciation)

      47,330       22,882       48,264  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      32,191       20,058       74,699  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      32,723       20,643       82,956  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      2,060       1,734       14,462  

Terminations, withdrawals and annuity payments

      (14,540 )      (24,178 )      (93,176 ) 

Transfers between subaccounts, net

      (55,516 )      (5,215 )      9,604  

Maintenance charges and mortality adjustments

      (180 )      (312 )      (2,642 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (68,176 )      (27,971 )      (71,752 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (35,453 )      (7,328 )      11,204  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 225,114     $ 145,661     $ 814,126  
  

 

 

    

 

 

    

 

 

  

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

 

12

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     BlackRock Global
Allocation V.I.		     BlackRock High
Yield V.I.		     BNY Mellon IP
MidCap Stock		  

Net assets as of December 31, 2021

    $ 510,550     $ 309,897     $ 129,730  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      —        12,009       489  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (3,063 )      (1,817 )      (763 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (3,063 )      10,192       (274 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      6,227       —        26,989  

Realized capital gain (loss) on investments

      (18,816 )      (8,589 )      (1,088 ) 

Change in unrealized appreciation (depreciation)

      (66,416 )      (36,353 )      (44,028 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (79,005 )      (44,942 )      (18,127 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (82,068 )      (34,750 )      (18,401 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      8,813       125       4,902  

Terminations, withdrawals and annuity payments

      (85,322 )      (29,715 )      (20,088 ) 

Transfers between subaccounts, net

      (6,901 )      (57,807 )      (2,053 ) 

Maintenance charges and mortality adjustments

      (2,245 )      (865 )      (274 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (85,655 )      (88,262 )      (17,513 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (167,723 )      (123,012 )      (35,914 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 342,827     $ 186,885     $ 93,816  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      6,890       12,008       538  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (2,411 )      (1,428 )      (749 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      4,479       10,580       (211 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        —        3,160  

Realized capital gain (loss) on investments

      (13,584 )      (3,011 )      (228 ) 

Change in unrealized appreciation (depreciation)

      43,089       14,002       13,423  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      29,505       10,991       16,355  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      33,984       21,571       16,144  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      2,802       785       790  

Terminations, withdrawals and annuity payments

      (97,866 )      (10,503 )      (890 ) 

Transfers between subaccounts, net

      5,043       609       1,016  

Maintenance charges and mortality adjustments

      (2,109 )      (574 )      (45 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (92,130 )      (9,683 )      871  
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (58,146 )      11,888       17,015  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 284,681     $ 198,773     $ 110,831  
  

 

 

    

 

 

    

 

 

  

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

 

13

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     BNY Mellon IP
Small Cap
Stock Index		     BNY Mellon IP
Technology
Growth		     BNY Mellon VIF
Appreciation		  

Net assets as of December 31, 2021

    $ 1,059,107     $ 2,303,121     $ 366,583  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      8,326       —        1,305  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (6,736 )      (11,709 )      (2,196 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      1,590       (11,709 )      (891 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      111,495       168,533       88,111  

Realized capital gain (loss) on investments

      5,080       (21,399 )      (41,242 ) 

Change in unrealized appreciation (depreciation)

      (299,005 )      (1,210,338 )      (110,374 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (182,430 )      (1,063,204 )      (63,505 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (180,840 )      (1,074,913 )      (64,396 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      12,901       11,788       4,704  

Terminations, withdrawals and annuity payments

      (47,902 )      (71,433 )      (31,118 ) 

Transfers between subaccounts, net

      (2,963 )      43,996       23,084  

Maintenance charges and mortality adjustments

      (1,272 )      (6,174 )      (182 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (39,236 )      (21,823 )      (3,512 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (220,076 )      (1,096,736 )      (67,908 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 839,031     $ 1,206,385     $ 298,675  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      9,376       —        1,538  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (6,623 )      (11,928 )      (2,389 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      2,753       (11,928 )      (851 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      48,946       —        28,166  

Realized capital gain (loss) on investments

      (5,460 )      (20,800 )      (8,273 ) 

Change in unrealized appreciation (depreciation)

      77,326       725,585       38,291  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      120,812       704,785       58,184  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      123,565       692,857       57,333  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      10,508       6,217       307  

Terminations, withdrawals and annuity payments

      (30,067 )      (31,114 )      (31,497 ) 

Transfers between subaccounts, net

      59,705       (5,770 )      40,070  

Maintenance charges and mortality adjustments

      (1,080 )      (5,845 )      (33 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      39,066       (36,512 )      8,847  
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      162,631       656,345       66,180  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 1,001,662     $ 1,862,730     $ 364,855  
  

 

 

    

 

 

    

 

 

  

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

 

14

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     ClearBridge
Variable
Aggressive Growth		     ClearBridge
Variable Small
Cap Growth		     Delaware Ivy VIP
Asset Strategy		  

Net assets as of December 31, 2021

    $ 1,182,547     $ 568,121     $ 127,054  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      —        —        1,462  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (7,312 )      (3,401 )      (786 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (7,312 )      (3,401 )      676  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      118,532       9,341       7,918  

Realized capital gain (loss) on investments

      (86,148 )      (2,012 )      (2,692 ) 

Change in unrealized appreciation (depreciation)

      (348,744 )      (174,905 )      (25,852 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (316,360 )      (167,576 )      (20,626 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (323,672 )      (170,977 )      (19,950 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      9,470       6,934       2,340  

Terminations, withdrawals and annuity payments

      (46,811 )      (15,412 )      (23,351 ) 

Transfers between subaccounts, net

      (17,196 )      45,801       3,153  

Maintenance charges and mortality adjustments

      (2,475 )      (768 )      (484 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (57,012 )      36,555       (18,342 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (380,684 )      (134,422 )      (38,292 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 801,863     $ 433,699     $ 88,762  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      535       —        1,559  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (6,229 )      (3,129 )      (679 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (5,694 )      (3,129 )      880  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      86,850       —        —   

Realized capital gain (loss) on investments

      (46,256 )      (3,415 )      (1,016 ) 

Change in unrealized appreciation (depreciation)

      141,338       36,066       10,568  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      181,932       32,651       9,552  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      176,238       29,522       10,432  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      9,220       6,862       2,871  

Terminations, withdrawals and annuity payments

      (25,151 )      (4,527 )      (24,847 ) 

Transfers between subaccounts, net

      (49,267 )      (57,485 )      (436 ) 

Maintenance charges and mortality adjustments

      (2,065 )      (620 )      (132 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (67,263 )      (55,770 )      (22,544 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      108,975       (26,248 )      (12,112 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 910,838     $ 407,451     $ 76,650  
  

 

 

    

 

 

    

 

 

  

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

 

15

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Fidelity® VIP
Equity-Income		     Fidelity® VIP
Growth & Income		     Fidelity® VIP
Growth
Opportunities		  

Net assets as of December 31, 2021

    $ 653,112     $ 865,268     $ 2,035,465  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      9,947       12,883       —   

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (4,373 )      (6,414 )      (10,994 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      5,574       6,469       (10,994 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      19,927       17,838       290,104  

Realized capital gain (loss) on investments

      5,994       5,556       (11,918 ) 

Change in unrealized appreciation (depreciation)

      (71,190 )      (79,596 )      (1,054,696 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (45,269 )      (56,202 )      (776,510 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (39,695 )      (49,733 )      (787,504 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      6,364       61,577       19,493  

Terminations, withdrawals and annuity payments

      (76,216 )      (17,299 )      (55,680 ) 

Transfers between subaccounts, net

      25,936       3,274       16,429  

Maintenance charges and mortality adjustments

      (3,346 )      (1,389 )      (4,611 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (47,262 )      46,163       (24,369 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (86,957 )      (3,570 )      (811,873 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 566,155     $ 861,698     $ 1,223,592  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      7,907       14,060       —   

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (4,021 )      (6,974 )      (11,026 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      3,886       7,086       (11,026 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      13,569       36,823       —  

Realized capital gain (loss) on investments

      4,289       8,561       2,134  

Change in unrealized appreciation (depreciation)

      21,225       98,057       539,965  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      39,083       143,441       542,099  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      42,969       150,527       531,073  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      11,494       41,982       19,934  

Terminations, withdrawals and annuity payments

      (82,054 )      (34,765 )      (56,885 ) 

Transfers between subaccounts, net

      (61,601 )      (7,228 )      (46,042 ) 

Maintenance charges and mortality adjustments

      (4,658 )      (1,225 )      (4,012 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (136,819 )      (1,236 )      (87,005 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (93,850 )      149,291       444,068  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 472,305     $ 1,010,989     $ 1,667,660  
  

 

 

    

 

 

    

 

 

  

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

 

16

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Fidelity® VIP
High Income		     Fidelity® VIP
Overseas		     Franklin Allocation
VIP Fund		  

Net assets as of December 31, 2021

    $ 763,022     $ 543,591     $ 359,605  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      35,146       4,054       4,202  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (5,105 )      (3,400 )      (2,066 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      30,041       654       2,136  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        3,895       26,483  

Realized capital gain (loss) on investments

      (5,024 )      (48 )      (18,942 ) 

Change in unrealized appreciation (depreciation)

      (118,207 )      (137,682 )      (67,214 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (123,231 )      (133,835 )      (59,673 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (93,190 )      (133,181 )      (57,537 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      92       43,695       1,000  

Terminations, withdrawals and annuity payments

      (3,735 )      (41,301 )      (57,809 ) 

Transfers between subaccounts, net

      (10,108 )      42,693       (10,000 ) 

Maintenance charges and mortality adjustments

      (3,733 )      (341 )      (1,506 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (17,484 )      44,746       (68,315 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (110,674 )      (88,435 )      (125,852 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 652,348     $ 455,156     $ 233,753  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      35,569       3,273       2,980  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (4,775 )      (3,334 )      (1,747 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      30,794       (61 )      1,233  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        1,097       3,700  

Realized capital gain (loss) on investments

      (12,159 )      12,466       (6,258 ) 

Change in unrealized appreciation (depreciation)

      38,557       66,664       32,074  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      26,398       80,227       29,516  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      57,192       80,166       30,749  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      232       6,039       1,000  

Terminations, withdrawals and annuity payments

      (29,082 )      (92,147 )      (18,473 ) 

Transfers between subaccounts, net

      (31,086 )      (31,700 )      —   

Maintenance charges and mortality adjustments

      (3,567 )      (272 )      (1,096 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (63,503 )      (118,080 )      (18,569 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (6,311 )      (37,914 )      12,180  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 646,037     $ 417,242     $ 245,933  
  

 

 

    

 

 

    

 

 

  

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

 

17

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Franklin Income
VIP Fund		     Franklin Mutual
Global Discovery
VIP Fund		     Franklin Small
Cap Value VIP
Fund		  

Net assets as of December 31, 2021

    $ 653,228     $ 954,132     $ 216,969  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      28,411       12,300       1,666  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (4,755 )      (6,609 )      (1,301 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      23,656       5,691       365  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      11,532       73,551       31,435  

Realized capital gain (loss) on investments

      2,689       (4,063 )      (4,280 ) 

Change in unrealized appreciation (depreciation)

      (77,095 )      (125,590 )      (50,617 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (62,874 )      (56,102 )      (23,462 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (39,218 )      (50,411 )      (23,097 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      4,234       16,124       798  

Terminations, withdrawals and annuity payments

      (52,758 )      (83,263 )      (30,142 ) 

Transfers between subaccounts, net

      (122 )      3,964       (10,967 ) 

Maintenance charges and mortality adjustments

      (2,273 )      (1,166 )      (456 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (50,919 )      (64,341 )      (40,767 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (90,137 )      (114,752 )      (63,864 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 563,091     $ 839,380     $ 153,105  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      29,109       22,245       798  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (4,546 )      (6,730 )      (1,163 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      24,563       15,515       (365 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      35,290       48,411       8,648  

Realized capital gain (loss) on investments

      (1,787 )      (2,087 )      (1,549 ) 

Change in unrealized appreciation (depreciation)

      (15,174 )      97,371       11,244  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      18,329       143,695       18,343  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      42,892       159,210       17,978  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      2,749       12,846       1,010  

Terminations, withdrawals and annuity payments

      (15,009 )      (21,598 )      (3,213 ) 

Transfers between subaccounts, net

      2,700       (35,403 )      (86 ) 

Maintenance charges and mortality adjustments

      (1,778 )      (793 )      (128 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (11,338 )      (44,948 )      (2,417 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      31,554       114,262       15,561  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 594,645     $ 953,642     $ 168,666  
  

 

 

    

 

 

    

 

 

  

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

 

18

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Franklin Strategic
Income VIP Fund		     Guggenheim VIF
All Cap Value		     Guggenheim VIF
Alpha Opportunity		  

Net assets as of December 31, 2021

    $ 121,138     $ 315,746     $ 72,348  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      4,813       3,218       266  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (808 )      (2,178 )      (501 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      4,005       1,040       (235 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        29,959       —   

Realized capital gain (loss) on investments

      (4,336 )      10,935       (273 ) 

Change in unrealized appreciation (depreciation)

      (13,941 )      (47,963 )      (6,164 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (18,277 )      (7,069 )      (6,437 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (14,272 )      (6,029 )      (6,672 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      4,050       70       2,395  

Terminations, withdrawals and annuity payments

      (9,819 )      (51,340 )      (1,462 ) 

Transfers between subaccounts, net

      (9,397 )      (5,212 )      (1,030 ) 

Maintenance charges and mortality adjustments

      (711 )      (1,072 )      (81 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (15,877 )      (57,554 )      (178 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (30,149 )      (63,583 )      (6,850 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 90,989     $ 252,163     $ 65,498  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      4,208       3,988       77  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (712 )      (1,933 )      (499 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      3,496       2,055       (422 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        21,675       —   

Realized capital gain (loss) on investments

      (939 )      618       (405 ) 

Change in unrealized appreciation (depreciation)

      4,329       (3,431 )      5,615  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      3,390       18,862       5,210  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      6,886       20,917       4,788  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      4,500       —        1,913  

Terminations, withdrawals and annuity payments

      (749 )      (3,728 )      (4,226 ) 

Transfers between subaccounts, net

      615       16,501       599  

Maintenance charges and mortality adjustments

      (304 )      (870 )      (58 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      4,062       11,903       (1,772 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      10,948       32,820       3,016  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 101,937     $ 284,983     $ 68,514  
  

 

 

    

 

 

    

 

 

  

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

 

19

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Guggenheim VIF
Floating Rate
Strategies		     Guggenheim VIF
Global Managed
Futures Strategy		     Guggenheim VIF
High Yield		  

Net assets as of December 31, 2021

    $ 1,227,732     $ 63,452     $ 927,988  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      27,333       1,684       51,737  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (8,846 )      (529 )      (6,281 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      18,487       1,155       45,456  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        333       —   

Realized capital gain (loss) on investments

      (3,986 )      47       (13,064 ) 

Change in unrealized appreciation (depreciation)

      (33,677 )      5,099       (125,570 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (37,663 )      5,479       (138,634 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (19,176 )      6,634       (93,178 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      4,843       112       91  

Terminations, withdrawals and annuity payments

      (20,161 )      (95 )      (71,352 ) 

Transfers between subaccounts, net

      (11,512 )      —        (21,660 ) 

Maintenance charges and mortality adjustments

      (6,361 )      (350 )      (1,697 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (33,191 )      (333 )      (94,618 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (52,367 )      6,301       (187,796 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 1,175,365     $ 69,753     $ 740,192  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      41,959       2,561       43,565  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (9,070 )      (534 )      (5,952 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      32,889       2,027       37,613  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        1,629       —   

Realized capital gain (loss) on investments

      (3,380 )      21       (6,524 ) 

Change in unrealized appreciation (depreciation)

      88,787       (1,563 )      49,388  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      85,407       87       42,864  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      118,296       2,114       80,477  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      5,010       250       —   

Terminations, withdrawals and annuity payments

      (18,363 )      —        (23,541 ) 

Transfers between subaccounts, net

      (29,524 )      —        (3,340 ) 

Maintenance charges and mortality adjustments

      (6,557 )      (353 )      (1,597 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (49,434 )      (103 )      (28,478 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      68,862       2,011       51,999  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 1,244,227     $ 71,764     $ 792,191  
  

 

 

    

 

 

    

 

 

  

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

 

20

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Guggenheim VIF
Large Cap Value		     Guggenheim VIF
Long Short Equity		     Guggenheim VIF
Managed Asset
Allocation		  

Net assets as of December 31, 2021

    $ 747,458     $ 100,035     $ 684,602  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      8,519       358       4,359  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (5,155 )      (574 )      (4,061 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      3,364       (216 )      298  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      59,419       —        50,816  

Realized capital gain (loss) on investments

      21,094       938       5,956  

Change in unrealized appreciation (depreciation)

      (96,196 )      (15,159 )      (166,774 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (15,683 )      (14,221 )      (110,002 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (12,319 )      (14,437 )      (109,704 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      2,769       —        9,417  

Terminations, withdrawals and annuity payments

      (68,018 )      (12,359 )      (65,264 ) 

Transfers between subaccounts, net

      (17,502 )      (8,530 )      (25,537 ) 

Maintenance charges and mortality adjustments

      (587 )      (470 )      (2,421 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (83,338 )      (21,359 )      (83,805 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (95,657 )      (35,796 )      (193,509 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 651,801     $ 64,239     $ 491,093  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      11,056       193       5,999  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (4,927 )      (545 )      (3,660 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      6,129       (352 )      2,339  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      65,452       —        3,679  

Realized capital gain (loss) on investments

      2,701       958       (5,731 ) 

Change in unrealized appreciation (depreciation)

      (21,711 )      7,057       56,412  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      46,442       8,015       54,360  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      52,571       7,663       56,699  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      3,180       —        830  

Terminations, withdrawals and annuity payments

      (45,743 )      (5,569 )      (100,908 ) 

Transfers between subaccounts, net

      (5,766 )      9,482       63  

Maintenance charges and mortality adjustments

      (521 )      (440 )      (2,165 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (48,850 )      3,473       (102,180 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      3,721       11,136       (45,481 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 655,522     $ 75,375     $ 445,612  
  

 

 

    

 

 

    

 

 

  

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

 

21

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Guggenheim VIF
Multi-Hedge
Strategies		     Guggenheim VIF
Small Cap Value		     Guggenheim VIF
SMid Cap Value		  

Net assets as of December 31, 2021

    $ 56,395     $ 394,141     $ 1,248,305  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      649       2,364       10,170  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (474 )      (2,726 )      (8,826 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      175       (362 )      1,344  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      563       17,044       126,883  

Realized capital gain (loss) on investments

      63       6,028       20,930  

Change in unrealized appreciation (depreciation)

      (3,368 )      (40,411 )      (182,122 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (2,742 )      (17,339 )      (34,309 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (2,567 )      (17,701 )      (32,965 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      2,000       7,418       22,908  

Terminations, withdrawals and annuity payments

      (934 )      (53,481 )      (71,282 ) 

Transfers between subaccounts, net

      32,387       46,611       (45,238 ) 

Maintenance charges and mortality adjustments

      (216 )      (1,165 )      (2,386 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      33,237       (617 )      (95,998 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      30,670       (18,318 )      (128,963 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 87,065     $ 375,823     $ 1,119,342  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      2,549       4,820       17,196  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (721 )      (2,787 )      (8,661 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      1,828       2,033       8,535  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        23,514       80,667  

Realized capital gain (loss) on investments

      (205 )      (1,682 )      3,647  

Change in unrealized appreciation (depreciation)

      1,453       9,596       5,125  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      1,248       31,428       89,439  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      3,076       33,461       97,974  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      2,100       5,672       15,625  

Terminations, withdrawals and annuity payments

      (436 )      (17,269 )      (20,490 ) 

Transfers between subaccounts, net

      2,663       (336 )      15,938  

Maintenance charges and mortality adjustments

      (390 )      (974 )      (2,297 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      3,937       (12,907 )      8,776  
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      7,013       20,554       106,750  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 94,078     $ 396,377     $ 1,226,092  
  

 

 

    

 

 

    

 

 

  

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

 

22

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Guggenheim VIF
StylePlus Large
Core		     Guggenheim VIF
StylePlus Large
Growth		     Guggenheim VIF
StylePlus Mid
Growth		  

Net assets as of December 31, 2021

    $ 633,084     $ 385,304     $ 3,100,760  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      2,955       1,124       9,320  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (4,279 )      (2,066 )      (18,956 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (1,324 )      (942 )      (9,636 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      140,047       63,617       675,023  

Realized capital gain (loss) on investments

      4,060       2,335       (44,904 ) 

Change in unrealized appreciation (depreciation)

      (277,266 )      (178,266 )      (1,519,198 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (133,159 )      (112,314 )      (889,079 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (134,483 )      (113,256 )      (898,715 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      12,791       474       151,095  

Terminations, withdrawals and annuity payments

      (49,898 )      (26,154 )      (162,443 ) 

Transfers between subaccounts, net

      17,072       (15,787 )      107,753  

Maintenance charges and mortality adjustments

      (1,115 )      (1,101 )      (9,719 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (21,150 )      (42,568 )      86,686  
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (155,633 )      (155,824 )      (812,029 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 477,451     $ 229,480     $ 2,288,731  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      8,464       3,624       36,566  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (4,237 )      (1,903 )      (18,921 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      4,227       1,721       17,645  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        —        —   

Realized capital gain (loss) on investments

      (4,388 )      (4,933 )      (91,043 ) 

Change in unrealized appreciation (depreciation)

      121,443       80,947       634,710  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      117,055       76,014       543,667  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      121,282       77,735       561,312  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      7,929       1,787       39,092  

Terminations, withdrawals and annuity payments

      (17,771 )      (117,428 )      (194,505 ) 

Transfers between subaccounts, net

      (9,205 )      515       (21,260 ) 

Maintenance charges and mortality adjustments

      (982 )      (875 )      (8,125 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (20,029 )      (116,001 )      (184,798 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      101,253       (38,266 )      376,514  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 578,704     $ 191,214     $ 2,665,245  
  

 

 

    

 

 

    

 

 

  

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

 

23

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Guggenheim VIF
StylePlus Small
Growth		     Guggenheim VIF
Total Return
Bond		     Guggenheim VIF
World Equity
Income		  

Net assets as of December 31, 2021

    $ 1,290,852     $ 2,041,211     $ 749,106  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      3,137       52,458       13,510  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (7,582 )      (13,006 )      (4,703 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (4,445 )      39,452       8,807  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      328,141       4,141       125,741  

Realized capital gain (loss) on investments

      (1,713 )      (12,840 )      26,217  

Change in unrealized appreciation (depreciation)

      (671,107 )      (364,422 )      (228,894 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (344,679 )      (373,121 )      (76,936 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (349,124 )      (333,669 )      (68,129 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      1,832       7,102       342  

Terminations, withdrawals and annuity payments

      (10,894 )      (110,679 )      (98,490 ) 

Transfers between subaccounts, net

      5,013       (35,006 )      14,880  

Maintenance charges and mortality adjustments

      (5,207 )      (9,272 )      (1,708 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (9,256 )      (147,855 )      (84,976 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (358,380 )      (481,524 )      (153,105 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 932,472     $ 1,559,687     $ 596,001  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      13,590       57,521       16,144  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (7,326 )      (11,709 )      (4,524 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      6,264       45,812       11,620  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        —        —   

Realized capital gain (loss) on investments

      (22,302 )      (21,938 )      1,782  

Change in unrealized appreciation (depreciation)

      195,832       69,844       52,240  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      173,530       47,906       54,022  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      179,794       93,718       65,642  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      5,512       4,970       887  

Terminations, withdrawals and annuity payments

      (15,619 )      (53,047 )      (16,910 ) 

Transfers between subaccounts, net

      (37,021 )      (8,385 )      (14,577 ) 

Maintenance charges and mortality adjustments

      (5,181 )      (7,256 )      (1,624 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (52,309 )      (63,718 )      (32,224 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      127,485       30,000       33,418  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 1,059,957     $ 1,589,687     $ 629,419  
  

 

 

    

 

 

    

 

 

  

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

 

24

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Invesco V.I.
American Value		     Invesco V.I.
Comstock		     Invesco V.I. Core
Plus Bond		  

Net assets as of December 31, 2021

    $ 7,288     $ 277,225     $ —   
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      597       3,211       1,257  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (367 )      (1,921 )      (1,015 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      230       1,290       242  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      24,199       7,321       139  

Realized capital gain (loss) on investments

      (86 )      11,888       (790 ) 

Change in unrealized appreciation (depreciation)

      (19,660 )      (23,201 )      (11,767 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      4,453       (3,992 )      (12,418 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      4,683       (2,702 )      (12,176 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      —        —        —   

Terminations, withdrawals and annuity payments

      (168 )      (33,839 )      (14,032 ) 

Transfers between subaccounts, net

      118,984       (7,635 )      240,995  

Maintenance charges and mortality adjustments

      (280 )      (304 )      (416 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      118,536       (41,778 )      226,547  
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      123,219       (44,480 )      214,371  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 130,507     $ 232,745     $ 214,371  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      519       3,264       5,044  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (993 )      (1,686 )      (1,543 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (474 )      1,578       3,501  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      28,930       23,506       —   

Realized capital gain (loss) on investments

      (310 )      7,501       (756 ) 

Change in unrealized appreciation (depreciation)

      (9,391 )      (3,180 )      7,666  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      19,229       27,827       6,910  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      18,755       29,405       10,411  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      —        —        665  

Terminations, withdrawals and annuity payments

      (149 )      (45,702 )      (7,452 ) 

Transfers between subaccounts, net

      (1 )      101,117       (7,131 ) 

Maintenance charges and mortality adjustments

      (713 )      (290 )      (520 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (863 )      55,125       (14,438 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      17,892       84,530       (4,027 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 148,399     $ 317,275     $ 210,344  
  

 

 

    

 

 

    

 

 

  

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

 

25

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Invesco V.I.
Discovery Mid Cap
Growth		     Invesco V.I. Equity
and Income		     Invesco V.I. EVQ
International
Equity Fund		  

Net assets as of December 31, 2021

    $ 456,732     $ 1,103,548     $ 471,218  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      —        11,335       4,645  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (2,531 )      (6,683 )      (2,867 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (2,531 )      4,652       1,778  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      103,207       104,592       36,337  

Realized capital gain (loss) on investments

      2,149       24,720       (3,499 ) 

Change in unrealized appreciation (depreciation)

      (243,428 )      (222,756 )      (120,034 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (138,072 )      (93,444 )      (87,196 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (140,603 )      (88,792 )      (85,418 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      21,664       41,615       4,640  

Terminations, withdrawals and annuity payments

      (38,043 )      (231,658 )      (68,133 ) 

Transfers between subaccounts, net

      14,297       (63,403 )      (9,330 ) 

Maintenance charges and mortality adjustments

      (495 )      (3,737 )      (1,380 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (2,577 )      (257,183 )      (74,203 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (143,180 )      (345,975 )      (159,621 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 313,552     $ 757,573     $ 311,597  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      —        12,729       —   

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (2,498 )      (5,545 )      (2,711 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (2,498 )      7,184       (2,711 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        38,644       256  

Realized capital gain (loss) on investments

      (4,025 )      (6,633 )      (6,013 ) 
  

 

 

    

 

 

    

 

 

  

Change in unrealized appreciation (depreciation)

      45,094       26,676       59,589  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      41,069       58,687       53,832  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      38,571       65,871       51,121  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      2,323       5,739       4,464  

Terminations, withdrawals and annuity payments

      (13,432 )      (109,066 )      (18,721 ) 

Transfers between subaccounts, net

      9,142       16,372       (1,186 ) 

Maintenance charges and mortality adjustments

      (468 )      (2,621 )      (1,141 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (2,435 )      (89,576 )      (16,584 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      36,136       (23,705 )      34,537  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 349,688     $ 733,868     $ 346,134  
  

 

 

    

 

 

    

 

 

  

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

 

26

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Invesco V.I.
Global		     Invesco V.I. Global
Real Estate		     Invesco V.I.
Government
Money Market		  

Net assets as of December 31, 2021

    $ 741,389     $ 663,517     $ 920,685  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      —        14,834       9,956  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (4,088 )      (3,948 )      (6,990 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (4,088 )      10,886       2,966  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      95,890       —        —   

Realized capital gain (loss) on investments

      1,718       (4,136 )      —   

Change in unrealized appreciation (depreciation)

      (331,317 )      (167,099 )      —   
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (233,709 )      (171,235 )      —   
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (237,797 )      (160,349 )      2,966  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      122       7,177       590  

Terminations, withdrawals and annuity payments

      (30,383 )      (65,047 )      (247,683 ) 

Transfers between subaccounts, net

      16,827       8,331       46,349  

Maintenance charges and mortality adjustments

      (2,683 )      (1,321 )      (3,544 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (16,117 )      (50,860 )      (204,288 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (253,914 )      (211,209 )      (201,322 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 487,475     $ 452,308     $ 719,363  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      —        6,938       30,516  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (4,231 )      (3,435 )      (5,338 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (4,231 )      3,503       25,178  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      67,822       —        —   

Realized capital gain (loss) on investments

      (2,358 )      (8,127 )      —   

Change in unrealized appreciation (depreciation)

      99,646       40,529       —   
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      165,110       32,402       —   
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      160,879       35,905       25,178  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      222       6,946       2,826  

Terminations, withdrawals and annuity payments

      (13,949 )      (23,713 )      (104,131 ) 

Transfers between subaccounts, net

      425       13,718       (17,241 ) 

Maintenance charges and mortality adjustments

      (2,904 )      (1,061 )      (3,697 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (16,206 )      (4,110 )      (122,243 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      144,673       31,795       (97,065 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 632,148     $ 484,103     $ 622,298  
  

 

 

    

 

 

    

 

 

  

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

 

27

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Invesco V.I.
Government
Securities		     Invesco V.I. Health
Care		     Invesco V.I. Main
Street Mid Cap
Fund®		  

Net assets as of December 31, 2021

    $ 792,898     $ 247,702     $ 111,451  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      11,514       —        62  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (5,219 )      (1,753 )      (702 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      6,295       (1,753 )      (640 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        29,313       19,086  

Realized capital gain (loss) on investments

      (17,250 )      (539 )      (2,688 ) 

Change in unrealized appreciation (depreciation)

      (76,009 )      (62,059 )      (33,004 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (93,259 )      (33,285 )      (16,606 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (86,964 )      (35,038 )      (17,246 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      4,565       3,475       1  

Terminations, withdrawals and annuity payments

      (118,961 )      (3,238 )      (3,991 ) 

Transfers between subaccounts, net

      7,765       12,863       (7,342 ) 

Maintenance charges and mortality adjustments

      (991 )      (161 )      (142 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (107,622 )      12,939       (11,474 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (194,586 )      (22,099 )      (28,720 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 598,312     $ 225,603     $ 82,731  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      11,237       —        44  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (4,580 )      (1,689 )      (773 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      6,657       (1,689 )      (729 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        —        —   

Realized capital gain (loss) on investments

      (4,700 )      (6,988 )      (2,183 ) 

Change in unrealized appreciation (depreciation)

      20,126       11,384       17,721  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      15,426       4,396       15,538  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      22,083       2,707       14,809  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      4,256       1,650       —   

Terminations, withdrawals and annuity payments

      (22,036 )      (20,002 )      (2,169 ) 

Transfers between subaccounts, net

      23,345       (12,978 )      23,889  

Maintenance charges and mortality adjustments

      (912 )      (136 )      (111 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      4,653       (31,466 )      21,609  
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      26,736       (28,759 )      36,418  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 625,048     $ 196,844     $ 119,149  
  

 

 

    

 

 

    

 

 

  

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

 

28

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Invesco V.I. Main
Street Small Cap
Fund®		     Janus Henderson
VIT Enterprise		     Janus Henderson
VIT Research		  

Net assets as of December 31, 2021

    $ 211,510     $ 2,448,804     $ 1,055,169  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      478       1,690       —   

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (1,490 )      (15,582 )      (6,266 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (1,012 )      (13,892 )      (6,266 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      22,397       369,935       154,994  

Realized capital gain (loss) on investments

      253       (5,323 )      453  

Change in unrealized appreciation (depreciation)

      (57,415 )      (761,240 )      (474,768 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (34,765 )      (396,628 )      (319,321 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (35,777 )      (410,520 )      (325,587 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      19,682       11,481       16,399  

Terminations, withdrawals and annuity payments

      (25,702 )      (61,532 )      (9,884 ) 

Transfers between subaccounts, net

      541       (37,047 )      25,151  

Maintenance charges and mortality adjustments

      (792 )      (9,812 )      (1,734 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (6,271 )      (96,910 )      29,932  
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (42,048 )      (507,430 )      (295,655 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 169,462     $ 1,941,374     $ 759,514  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      1,866       1,790       557  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (1,492 )      (14,886 )      (6,784 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      374       (13,096 )      (6,227 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        147,863       —   

Realized capital gain (loss) on investments

      1,314       (7,727 )      4,503  

Change in unrealized appreciation (depreciation)

      30,684       182,110       313,811  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      31,998       322,246       318,314  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      32,372       309,150       312,087  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      5,391       13,173       13,770  

Terminations, withdrawals and annuity payments

      (22,044 )      (119,878 )      (28,783 ) 

Transfers between subaccounts, net

      21,013       (74,987 )      (20,338 ) 

Maintenance charges and mortality adjustments

      (596 )      (10,838 )      (2,387 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      3,764       (192,530 )      (37,738 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      36,136       116,620       274,349  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 205,598     $ 2,057,994     $ 1,033,863  
  

 

 

    

 

 

    

 

 

  

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

 

29

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Lord Abbett Series
Bond-Debenture
VC		     Lord Abbett Series
Developing
Growth VC		     LVIP JPMorgan
Core Bond Fund
(a)		  

Net assets as of December 31, 2021

    $ 283,032     $ 352,903     $ 294,648  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      9,341       —        4,282  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (1,590 )      (1,620 )      (1,388 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      7,751       (1,620 )      2,894  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      575       —        1,293  

Realized capital gain (loss) on investments

      (2,913 )      (33,003 )      (19,468 ) 

Change in unrealized appreciation (depreciation)

      (38,116 )      (84,621 )      (19,008 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (40,454 )      (117,624 )      (37,183 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (32,703 )      (119,244 )      (34,289 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      975       2,836       300  

Terminations, withdrawals and annuity payments

      (19,925 )      (3,132 )      (109,808 ) 

Transfers between subaccounts, net

      (30,126 )      (46,311 )      (43,165 ) 

Maintenance charges and mortality adjustments

      (1,360 )      (15 )      (1,635 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (50,436 )      (46,622 )      (154,308 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (83,139 )      (165,866 )      (188,597 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 199,893     $ 187,037     $ 106,051  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      8,566       —        3,569  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (1,328 )      (1,452 )      (811 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      7,238       (1,452 )      2,758  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        —        —   

Realized capital gain (loss) on investments

      (6,953 )      (5,677 )      (220 ) 

Change in unrealized appreciation (depreciation)

      9,763       22,144       2,660  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      2,810       16,467       2,440  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      10,048       15,015       5,198  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      514       416       —   

Terminations, withdrawals and annuity payments

      (14,428 )      (4,128 )      —   

Transfers between subaccounts, net

      (24,526 )      10,686       1,305  

Maintenance charges and mortality adjustments

      (1,163 )      (15 )      (292 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (39,603 )      6,959       1,013  
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (29,555 )      21,974       6,211  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 170,338     $ 209,011     $ 112,262  
  

 

 

    

 

 

    

 

 

  

 

(a)

Name change. See Note 1.

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

 

30

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     MFS® VIT II
Research
International		     MFS® VIT Total
Return		     MFS® VIT
Utilities		  

Net assets as of December 31, 2021

    $ 301,069     $ 1,003,892     $ 743,597  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      4,131       13,364       15,472  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (1,867 )      (6,642 )      (5,433 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      2,264       6,722       10,039  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      5,784       79,477       27,205  

Realized capital gain (loss) on investments

      696       2,045       15,052  

Change in unrealized appreciation (depreciation)

      (63,797 )      (193,698 )      (56,755 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (57,317 )      (112,176 )      (14,498 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (55,053 )      (105,454 )      (4,459 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      4,736       8,476       15,942  

Terminations, withdrawals and annuity payments

      (7,768 )      (89,584 )      (49,790 ) 

Transfers between subaccounts, net

      (2,349 )      5,624       (35,403 ) 

Maintenance charges and mortality adjustments

      (1,041 )      (1,982 )      (1,900 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (6,422 )      (77,466 )      (71,151 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (61,475 )      (182,920 )      (75,610 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 239,594     $ 820,972     $ 667,987  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      2,021       13,644       20,830  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (1,930 )      (5,861 )      (4,913 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      91       7,783       15,917  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        32,566       34,939  

Realized capital gain (loss) on investments

      (41 )      3,319       2,028  

Change in unrealized appreciation (depreciation)

      26,843       27,889       (75,402 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      26,802       63,774       (38,435 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      26,893       71,557       (22,518 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      9,402       443       973  

Terminations, withdrawals and annuity payments

      (28,057 )      (107,185 )      (49,694 ) 

Transfers between subaccounts, net

      699       (3,133 )      (20,935 ) 

Maintenance charges and mortality adjustments

      (1,707 )      (1,515 )      (1,647 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (19,663 )      (111,390 )      (71,303 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      7,230       (39,833 )      (93,821 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 246,824     $ 781,139     $ 574,166  
  

 

 

    

 

 

    

 

 

  

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

 

31

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Morgan Stanley
VIF Emerging
Markets Equity		     Morningstar
Aggressive Growth
ETF Asset
Allocation Portfolio		     Morningstar
Balanced ETF
Asset Allocation
Portfolio		  

Net assets as of December 31, 2021

    $ 413,319     $ 222,752     $ 390,328  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      1,178       2,998       6,105  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (2,398 )      (1,483 )      (2,643 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (1,220 )      1,515       3,462  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      33,663       7,079       16,626  

Realized capital gain (loss) on investments

      (11,679 )      310       (1,432 ) 

Change in unrealized appreciation (depreciation)

      (127,976 )      (39,567 )      (71,053 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (105,992 )      (32,178 )      (55,859 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (107,212 )      (30,663 )      (52,397 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      3,567       1,237       915  

Terminations, withdrawals and annuity payments

      (13,335 )      (1,384 )      (5,122 ) 

Transfers between subaccounts, net

      2,652       185       6,913  

Maintenance charges and mortality adjustments

      (186 )      (506 )      (367 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (7,302 )      (468 )      2,339  
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (114,514 )      (31,131 )      (50,058 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 298,805     $ 191,621     $ 340,270  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      4,810       3,449       6,112  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (2,247 )      (1,529 )      (2,606 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      2,563       1,920       3,506  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      5,387       4,303       7,114  

Realized capital gain (loss) on investments

      (15,728 )      101       (5,562 ) 

Change in unrealized appreciation (depreciation)

      35,263       24,352       31,455  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      24,922       28,756       33,007  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      27,485       30,676       36,513  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      2,220       970       360  

Terminations, withdrawals and annuity payments

      (38,871 )      —        (54,818 ) 

Transfers between subaccounts, net

      (26,711 )      (518 )      45  

Maintenance charges and mortality adjustments

      (138 )      (525 )      (376 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (63,500 )      (73 )      (54,789 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (36,015 )      30,603       (18,276 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 262,790     $ 222,224     $ 321,994  
  

 

 

    

 

 

    

 

 

  

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

 

32

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Morningstar
Conservative ETF
Asset Allocation
Portfolio		     Morningstar
Growth ETF Asset
Allocation Portfolio		     Morningstar
Income and
Growth ETF Asset
Allocation Portfolio		  

Net assets as of December 31, 2021

    $ 129,519     $ 233,855     $ 181,133  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      1,713       3,491       1,952  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (1,005 )      (1,609 )      (862 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      708       1,882       1,090  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      3,968       8,769       4,898  

Realized capital gain (loss) on investments

      441       65       1,147  

Change in unrealized appreciation (depreciation)

      (24,301 )      (43,575 )      (24,856 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (19,892 )      (34,741 )      (18,811 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (19,184 )      (32,859 )      (17,721 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      —        908       1,025  

Terminations, withdrawals and annuity payments

      (2,006 )      (6,340 )      —   

Transfers between subaccounts, net

      2,304       15,431       (56,804 ) 

Maintenance charges and mortality adjustments

      (21 )      (899 )      (258 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      277       9,100       (56,037 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (18,907 )      (23,759 )      (73,758 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 110,612     $ 210,096     $ 107,375  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      565       3,683       2,394  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (713 )      (1,530 )      (833 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (148 )      2,153       1,561  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      285       4,768       1,113  

Realized capital gain (loss) on investments

      (7,539 )      (1,227 )      (163 ) 

Change in unrealized appreciation (depreciation)

      11,267       22,554       7,941  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      4,013       26,095       8,891  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      3,865       28,248       10,452  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      —        —        120  

Terminations, withdrawals and annuity payments

      (89,414 )      (6,714 )      (417 ) 

Transfers between subaccounts, net

      25       (15,553 )      (4 ) 

Maintenance charges and mortality adjustments

      (20 )      (935 )      (260 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (89,409 )      (23,202 )      (561 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (85,544 )      5,046       9,891  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 25,068     $ 215,142     $ 117,266  
  

 

 

    

 

 

    

 

 

  

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

 

33

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Neuberger Berman
AMT Sustainable
Equity		     PIMCO VIT All
Asset		     PIMCO VIT
CommodityRealReturn
Strategy		  

Net assets as of December 31, 2021

    $ 846,913     $ 114,415     $ 219,245  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      735       7,870       49,875  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (4,622 )      (955 )      (1,840 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (3,887 )      6,915       48,035  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      56,091       8,084       —   

Realized capital gain (loss) on investments

      90,638       (239 )      9,101  

Change in unrealized appreciation (depreciation)

      (289,414 )      (28,809 )      (33,648 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (142,685 )      (20,964 )      (24,547 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (146,572 )      (14,049 )      23,488  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      53       2,706       548  

Terminations, withdrawals and annuity payments

      (140,277 )      (7,583 )      (37,259 ) 

Transfers between subaccounts, net

      (2,672 )      1,627       4,466  

Maintenance charges and mortality adjustments

      (1,637 )      (473 )      (848 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (144,533 )      (3,723 )      (33,093 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (291,105 )      (17,772 )      (9,605 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 555,808     $ 96,643     $ 209,640  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      421       2,910       31,689  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (4,239 )      (915 )      (1,544 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (3,818 )      1,995       30,145  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      8,856       —        —   

Realized capital gain (loss) on investments

      23,076       (918 )      (5,722 ) 

Change in unrealized appreciation (depreciation)

      100,351       5,702       (42,112 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      132,283       4,784       (47,834 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      128,465       6,779       (17,689 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      —        683       3,906  

Terminations, withdrawals and annuity payments

      (89,265 )      (3,441 )      (15,565 ) 

Transfers between subaccounts, net

      (12,739 )      843       2,238  

Maintenance charges and mortality adjustments

      (1,653 )      (453 )      (657 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (103,657 )      (2,368 )      (10,078 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      24,808       4,411       (27,767 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 580,616     $ 101,054     $ 181,873  
  

 

 

    

 

 

    

 

 

  

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

 

34

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     PIMCO VIT
Emerging Markets
Bond		     PIMCO VIT
International Bond
Portfolio (U.S.
Dollar-Hedged)		     PIMCO VIT Low
Duration		  

Net assets as of December 31, 2021

    $ 55,975     $ 391,686     $ 475,070  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      1,509       4,444       7,223  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (246 )      (2,331 )      (3,280 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      1,263       2,113       3,943  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        115       —   

Realized capital gain (loss) on investments

      (3,458 )      (3,571 )      (9,337 ) 

Change in unrealized appreciation (depreciation)

      (5,416 )      (34,766 )      (23,707 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (8,874 )      (38,222 )      (33,044 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (7,611 )      (36,109 )      (29,101 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      8       2       1,010  

Terminations, withdrawals and annuity payments

      (1,656 )      (38,958 )      (86,562 ) 

Transfers between subaccounts, net

      (19,604 )      (40,931 )      33,550  

Maintenance charges and mortality adjustments

      (122 )      (1,926 )      (2,170 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (21,374 )      (81,813 )      (54,172 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (28,985 )      (117,922 )      (83,273 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 26,990     $ 273,764     $ 391,797  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      1,563       7,384       12,963  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (213 )      (2,210 )      (2,775 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      1,350       5,174       10,188  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        7,611       —   

Realized capital gain (loss) on investments

      (454 )      (4,737 )      (11,468 ) 

Change in unrealized appreciation (depreciation)

      1,597       15,047       14,801  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      1,143       17,921       3,333  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      2,493       23,095       13,521  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      —        —        14,531  

Terminations, withdrawals and annuity payments

      (566 )      (17,996 )      (115,772 ) 

Transfers between subaccounts, net

      191       42,685       (20,736 ) 

Maintenance charges and mortality adjustments

      (113 )      (1,823 )      (3,381 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (488 )      22,866       (125,358 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      2,005       45,961       (111,837 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 28,995     $ 319,725     $ 279,960  
  

 

 

    

 

 

    

 

 

  

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

 

35

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     PIMCO VIT Real
Return		     PIMCO VIT Total
Return		     Putnam VT Small
Cap Value		  

Net assets as of December 31, 2021

    $ 1,310,338     $ 628,822     $ 19,400  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      77,524       13,369       29  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (8,460 )      (4,029 )      (135 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      69,064       9,340       (106 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        —        2,403  

Realized capital gain (loss) on investments

      (2,925 )      (19,460 )      (32 ) 

Change in unrealized appreciation (depreciation)

      (220,128 )      (83,018 )      (4,914 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (223,053 )      (102,478 )      (2,543 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (153,989 )      (93,138 )      (2,649 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      22,659       17,953       —   

Terminations, withdrawals and annuity payments

      (168,506 )      (104,265 )      (2 ) 

Transfers between subaccounts, net

      (13,695 )      22,117       202  

Maintenance charges and mortality adjustments

      (3,668 )      (3,276 )      (22 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (163,210 )      (67,471 )      178  
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (317,199 )      (160,609 )      (2,471 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 993,139     $ 468,213     $ 16,929  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      29,577       15,288       27  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (7,531 )      (3,323 )      (134 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      22,046       11,965       (107 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        —        2,090  

Realized capital gain (loss) on investments

      (7,805 )      (28,777 )      (59 ) 

Change in unrealized appreciation (depreciation)

      14,030       37,178       1,964  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      6,225       8,401       3,995  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      28,271       20,366       3,888  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      25,467       46,879       —   

Terminations, withdrawals and annuity payments

      (53,096 )      (134,360 )      (2 ) 

Transfers between subaccounts, net

      9,263       8,089       44  

Maintenance charges and mortality adjustments

      (2,879 )      (3,626 )      (24 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (21,245 )      (83,018 )      18  
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      7,026       (62,652 )      3,906  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 1,000,165     $ 405,561     $ 20,835  
  

 

 

    

 

 

    

 

 

  

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

 

36

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Royce Micro-Cap     T. Rowe Price
Health Sciences		     Templeton
Developing
Markets VIP Fund		  

Net assets as of December 31, 2021

    $ 221,819     $ 1,850,308     $ 184,388  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      —        —        4,509  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (1,330 )      (11,550 )      (1,179 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (1,330 )      (11,550 )      3,330  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      46,751       26,101       13,028  

Realized capital gain (loss) on investments

      3,383       17,300       (1,529 ) 

Change in unrealized appreciation (depreciation)

      (99,175 )      (286,981 )      (57,040 ) 
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (49,041 )      (243,580 )      (45,541 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (50,371 )      (255,130 )      (42,211 ) 
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      —        13,335       512  

Terminations, withdrawals and annuity payments

      (33,014 )      (32,907 )      (18,197 ) 

Transfers between subaccounts, net

      7,984       (23,267 )      30,658  

Maintenance charges and mortality adjustments

      (172 )      (5,930 )      (631 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (25,202 )      (48,769 )      12,342  
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (75,573 )      (303,899 )      (29,869 ) 
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 146,246     $ 1,546,409     $ 154,519  
  

 

 

    

 

 

    

 

 

  

Investment income (loss):

       

Dividend distributions

      —        —        3,412  

Investment Expenses:

       

Mortality and expense risk and administrative charges

      (1,167 )      (10,974 )      (1,224 ) 
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (1,167 )      (10,974 )      2,188  
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

       

Capital gain distributions

      —        54,823       124  

Realized capital gain (loss) on investments

      (1,265 )      11,988       (1,399 ) 

Change in unrealized appreciation (depreciation)

      28,479       (28,635 )      17,092  
  

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      27,214       38,176       15,817  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      26,047       27,202       18,005  
  

 

 

    

 

 

    

 

 

  

Contract owner transactions:

       

Variable annuity deposits

      —        6,104       8,766  

Terminations, withdrawals and annuity payments

      (235 )      (70,313 )      (13,365 ) 

Transfers between subaccounts, net

      (2,666 )      (21,988 )      600  

Maintenance charges and mortality adjustments

      (186 )      (5,560 )      (408 ) 
  

 

 

    

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (3,087 )      (91,757 )      (4,407 ) 
  

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      22,960       (64,555 )      13,598  
  

 

 

    

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 169,206     $ 1,481,854     $ 168,117  
  

 

 

    

 

 

    

 

 

  

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

 

37

Table of Contents

Variable Annuity Account B

Statements of Operations and Change in Net Assets (continued)

Years Ended December 31, 2023 and 2022, Except as Noted

 

     Templeton Global
Bond VIP Fund		     Western Asset
Variable Global
High Yield Bond		  

Net assets as of December 31, 2021

    $ 2,225,419     $ 28,400  
  

 

 

    

 

 

  

Investment income (loss):

     

Dividend distributions

      —        1,381  

Investment Expenses:

     

Mortality and expense risk and administrative charges

      (14,462 )      (236 ) 
  

 

 

    

 

 

  

Net investment income (loss)

      (14,462 )      1,145  
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

     

Capital gain distributions

      —        —   

Realized capital gain (loss) on investments

      (62,237 )      (474 ) 

Change in unrealized appreciation (depreciation)

      (42,837 )      (4,669 ) 
  

 

 

    

 

 

  

Net gain (loss) on investments

      (105,074 )      (5,143 ) 
  

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (119,536 )      (3,998 ) 
  

 

 

    

 

 

  

Contract owner transactions:

     

Variable annuity deposits

      137,603       73  

Terminations, withdrawals and annuity payments

      (148,451 )      (3,204 ) 

Transfers between subaccounts, net

      (262,690 )      124  

Maintenance charges and mortality adjustments

      (10,000 )      (80 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      (283,538 )      (3,087 ) 
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (403,074 )      (7,085 ) 
  

 

 

    

 

 

  

Net assets as of December 31, 2022

    $ 1,822,345     $ 21,315  
  

 

 

    

 

 

  

Investment income (loss):

     

Dividend distributions

      —        1,143  

Investment Expenses:

     

Mortality and expense risk and administrative charges

      (13,389 )      (223 ) 
  

 

 

    

 

 

  

Net investment income (loss)

      (13,389 )      920  
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations:

     

Capital gain distributions

      —        —   

Realized capital gain (loss) on investments

      (39,593 )      (110 ) 

Change in unrealized appreciation (depreciation)

      91,880       1,062  
  

 

 

    

 

 

  

Net gain (loss) on investments

      52,287       952  
  

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      38,898       1,872  
  

 

 

    

 

 

  

Contract owner transactions:

     

Variable annuity deposits

      30,317       —   

Terminations, withdrawals and annuity payments

      (114,071 )      (166 ) 

Transfers between subaccounts, net

      131,230       127  

Maintenance charges and mortality adjustments

      (7,316 )      (73 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from contract transactions

      40,160       (112 ) 
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      79,058       1,760  
  

 

 

    

 

 

  

Net assets as of December 31, 2023

    $ 1,901,403     $ 23,075  
  

 

 

    

 

 

  

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

 

38

Table of Contents

Variable Annuity Account B

Notes to Financial Statements

December 31, 2023

1. Organization and Significant Accounting Policies

Variable Annuity Account B (the Account) is a deferred variable annuity contract offered by First Security Benefit Life Insurance and Annuity Company of New York (FSBL). The Account is an investment company as defined by Financial Accounting Standard Board (FASB) Accounting Standard Codification (ASC) 946. The Account follows the accounting guidance as outlined in ASC 946. Purchase payments for SecureDesigns and AdvanceDesigns are allocated to one or more of the subaccounts that comprise the Account. The Account is registered as a unit investment trust under the Investment Company Act of 1940, as amended. As directed by the owners, amounts directed to each subaccount are invested in a designated mutual fund as follows:

 

Subaccount/Mutual Fund

   

Class

   

Investment Adviser

   

Sub-Adviser

AB VPS Discovery Value Portfolio

    B   

AllianceBernstein LP

    —

AB VPS Dynamic Asset Allocation

    B   

AllianceBernstein LP

    —

American Century VP Mid Cap Value

    II   

American Century Investment Management, Inc

    —

American Century VP Ultra®

    II   

American Century Investment Management, Inc

    —

American Century VP Value

    II   

American Century Investment Management, Inc

    —

American Funds IS® Asset Allocation

    Class 4   

Capital Research and Management Company

    —

American Funds IS® Capital World Bond

    Class 4   

Capital Research and Management Company

    —

American Funds IS® Global Growth

    Class 4   

Capital Research and Management Company

    —

American Funds IS® Growth-Income

    Class 4   

Capital Research and Management Company

    —

American Funds IS® International

    Class 4   

Capital Research and Management Company

    —

American Funds IS® New World

    Class 4   

Capital Research and Management Company

    —

BlackRock Equity Dividend V.I.

    Class 3   

BlackRock Advisors LLC

    —

BlackRock Global Allocation V.I.

    Class 3   

BlackRock Advisors LLC

   

BlackRock (Singapore) Ltd

BlackRock High Yield V.I.

    Class 3   

BlackRock Advisors LLC

   

BlackRock International Ltd

BNY Mellon IP MidCap Stock

    Service   

BNY Mellon Investment Adviser, Inc

   

Newton Investment Management North America, LLC

BNY Mellon IP Small Cap Stock Index

    Service   

BNY Mellon Investment Adviser, Inc

   

—

BNY Mellon IP Technology Growth

    Service   

BNY Mellon Investment Adviser, Inc

   

Newton Investment Management North America, LLC

BNY Mellon VIF Appreciation

    Service   

BNY Mellon Investment Adviser, Inc

   

Fayez Sarofim & Company

ClearBridge Variable Aggressive Growth

    Class II   

Legg Mason Partners Fund Advisor, LLC

   

ClearBridge Investments, LLC

ClearBridge Variable Small Cap Growth

    Class I   

Legg Mason Partners Fund Advisor, LLC

    ClearBridge Investments, LLC

 

39

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

1. Organization and Significant Accounting Policies (continued)

 

Subaccount/Mutual Fund

   

Class

   

Investment Adviser

   

Sub-Adviser

Delaware Ivy VIP Asset Strategy

    Class II   

Delaware Management Company

   

Macquarie Funds Management HK Ltd.

Macquarie Investment Management Global Limited

Macquarie Investment Management Austria Kapitalanlage AG

Macquarie Investment Management Europe Limited

Fidelity® VIP Equity-Income

    Service Class 2   

Fidelity Management & Research Company LLC

   

Fidelity Management & Research (UK) Ltd

Fidelity Management & Research (Japan) Ltd

Fidelity Management & Research (HK) Ltd

FMR Co., Inc (FMRC)

Fidelity® VIP Growth & Income

    Service Class 2   

Fidelity Management & Research Company LLC

   

Fidelity Management & Research (UK) Ltd

Fidelity Management & Research (Japan) Ltd

Fidelity Management & Research (HK) Ltd

FMR Co., Inc (FMRC)

Fidelity® VIP Growth Opportunities

    Service Class 2   

Fidelity Management & Research Company LLC

   

FMR Investment Management (UK) Ltd

Fidelity Management & Research (Japan) Ltd

Fidelity Management & Research (HK) Ltd

Fidelity® VIP High Income

    Service Class 2   

Fidelity Management & Research Company LLC

   

FMR Investment Management (UK) Ltd

Fidelity Management & Research (Japan) Ltd

Fidelity Management & Research (HK) Ltd

Fidelity® VIP Overseas

    Service Class 2   

Fidelity Management & Research Company LLC

   

FMR Investment Management (UK) Ltd

Fidelity Management & Research (Japan) Ltd

FIL Investments (Japan) Ltd

Fil Investment Advisors

Fidelity Management & Research (HK) Ltd

FIL Investment Advisors (UK) Ltd

Franklin Allocation VIP Fund

    Class 4   

Franklin Advisers, Inc

   

Templeton Global Advisors Ltd

Franklin Templeton Institutional, LLC

Franklin Income VIP Fund

    Class 2   

Franklin Advisers, Inc

    —

Franklin Mutual Global Discovery VIP Fund

    Class 2   

Franklin Mutual Advisers, LLC

    —

Franklin Small Cap Value VIP Fund

    Class 2   

Franklin Mutual Advisers, LLC

    —

Franklin Strategic Income VIP Fund

    Class 2   

Franklin Advisers, Inc

    —

Guggenheim VIF All Cap Value

    —   

Security Investors, LLC

    —

Guggenheim VIF Alpha Opportunity

    —   

Security Investors, LLC

    —

Guggenheim VIF Floating Rate Strategies

    —   

Guggenheim Partners Investment Mgmt LLC

    —

 

40

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

1. Organization and Significant Accounting Policies (continued)

 

Subaccount/Mutual Fund

   

Class

   

Investment Adviser

   

Sub-Adviser

Guggenheim VIF Global Managed Futures Strategy

    —   

Security Investors, LLC

   

—

Guggenheim VIF High Yield

    —   

Security Investors, LLC

   

—

Guggenheim VIF Large Cap Value

    —   

Security Investors, LLC

   

—

Guggenheim VIF Long Short Equity

    —   

Security Investors, LLC

   

—

Guggenheim VIF Managed Asset Allocation

    —   

Security Investors, LLC

   

—

Guggenheim VIF Multi-Hedge Strategies

    —   

Security Investors, LLC

   

—

Guggenheim VIF Small Cap Value

    —   

Security Investors, LLC

   

—

Guggenheim VIF SMid Cap Value

    —   

Security Investors, LLC

   

—

Guggenheim VIF StylePlus Large Core

    —   

Security Investors, LLC

   

—

Guggenheim VIF StylePlus Large Growth

    —   

Security Investors, LLC

   

—

Guggenheim VIF StylePlus Mid Growth

    —   

Security Investors, LLC

   

—

Guggenheim VIF StylePlus Small Growth

    —   

Security Investors, LLC

   

—

Guggenheim VIF Total Return Bond

    —   

Security Investors, LLC

   

—

Guggenheim VIF World Equity Income

    —   

Security Investors, LLC

   

—

Invesco V.I. American Value

    Series II   

Invesco Advisers, Inc

   

—

Invesco V.I. Comstock

    Series II   

Invesco Advisers, Inc

   

—

Invesco V.I. Core Plus Bond

    Series II   

Invesco Advisers, Inc

   

—

Invesco V.I. Discovery Mid Cap Growth

    Series II   

Invesco Advisers, Inc

   

—

Invesco V.I. Equity and Income

    Series II   

Invesco Advisers, Inc

   

—

Invesco V.I. EVQ International Equity Fund

    Series II   

Invesco Advisers, Inc

   

—

Invesco V.I. Global

    Series II   

Invesco Advisers, Inc

   

—

Invesco V.I. Global Real Estate

    Series I   

Invesco Advisers, Inc

   

Invesco Asset Management Ltd

Invesco V.I. Government Money Market

    Series II   

Invesco Advisers, Inc

   

—

Invesco V.I. Government Securities

    Series II   

Invesco Advisers, Inc

   

—

Invesco V.I. Health Care

    Series I   

Invesco Advisers, Inc

   

—

Invesco V.I. Main Street Mid Cap Fund®

    Series II   

Invesco Advisers, Inc

   

—

Invesco V.I. Main Street Small Cap Fund®

    Series II   

Invesco Advisers, Inc

   

—

Janus Henderson VIT Enterprise

    Service   

Janus Capital Management LLC

   

—

Janus Henderson VIT Research

    Service   

Janus Capital Management LLC

   

—

Lord Abbett Series Bond-Debenture VC

    VC   

Lord, Abbett & Co LLC

   

—

Lord Abbett Series Developing Growth VC

    VC   

Lord, Abbett & Co LLC

   

—

LVIP JPMorgan Core Bond Fund

    Service Class   

J.P. Morgan Investment Management, Inc

   

—

MFS® VIT II Research International

    Service   

Massachusetts Financial Services Company

   

—

MFS® VIT Total Return

    Service   

Massachusetts Financial Services Company

   

—

MFS® VIT Utilities

    Service   

Massachusetts Financial Services Company

   

—

Morgan Stanley VIF Emerging Markets Equity

    II   

Morgan Stanley Investment Management, Inc

   

Morgan Stanley Investment Management Co

 

41

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

1. Organization and Significant Accounting Policies (continued)

 

Subaccount/Mutual Fund

   

Class

   

Investment Adviser

   

Sub-Adviser

Morningstar Aggressive Growth ETF Asset Allocation Portfolio

    Class II   

ALPS Advisors Inc

   

Morningstar Investment Management LLC

Morningstar Balanced ETF Asset Allocation Portfolio

    Class II   

ALPS Advisors Inc

   

Morningstar Investment Management LLC

Morningstar Conservative ETF Asset Allocation Portfolio

    Class II   

ALPS Advisors Inc

   

Morningstar Investment Management LLC

Morningstar Growth ETF Asset Allocation Portfolio

    Class II   

ALPS Advisors Inc

   

Morningstar Investment Management LLC

Morningstar Income and Growth ETF Asset Allocation Portfolio

    Class II   

ALPS Advisors Inc

   

Morningstar Investment Management LLC

Neuberger Berman AMT Sustainable Equity

    S   

Neuberger Berman Investment Advisers LLC

   

—

PIMCO VIT All Asset

    Administrative   

Pacific Investment Management Company, LLC

   

Research Affiliates LLC

PIMCO VIT CommodityRealReturn Strategy

    Administrative   

Pacific Investment Management Company, LLC

   

—

PIMCO VIT Emerging Markets Bond

    Advisor   

Pacific Investment Management Company, LLC

   

—

PIMCO VIT International Bond Portfolio (U.S. Dollar-Hedged)

    Administrative   

Pacific Investment Management Company, LLC

   

—

PIMCO VIT Low Duration

    Administrative   

Pacific Investment Management Company, LLC

   

—

PIMCO VIT Real Return

    Administrative   

Pacific Investment Management Company, LLC

   

—

PIMCO VIT Total Return

    Advisor   

Pacific Investment Management Company, LLC

   

—

Putnam VT Small Cap Value

    IB   

Putnam Investment Management, LLC

   

Putnam Investments Ltd

Royce Micro-Cap

    Investment   

Royce & Associates, LP

   

—

T. Rowe Price Health Sciences

    II   

T. Rowe Price Associates, Inc

   

—

Templeton Developing Markets VIP Fund

    Class 2   

Templeton Asset Management Ltd

   

Franklin Templeton Inv Mgmt Ltd

Templeton Global Bond VIP Fund

    Class 2   

Franklin Advisers, Inc

   

—

Western Asset Variable Global High Yield Bond

    II   

Legg Mason Partners Fund Advisor, LLC

   

Western Asset Management Company Pte Ltd – Singapore Inc

Western Asset Management Company, LLC Inc

Western Asset Management Company Ltd – UK

Eighty-nine subaccounts are currently offered by the Account, all of which had activity.

Under applicable insurance law, the assets and liabilities of the Account are clearly identified and distinguished from FSBL’s other assets and liabilities. The portion of the Account’s assets applicable to the variable annuity contracts is not chargeable with liabilities arising out of any other business FSBL may conduct.

 

42

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

1. Organization and Significant Accounting Policies (continued)

 

During the current year the following subaccount name changes were made effective:

 

Date

   

New Name

   

Old Name

April 28, 2023    LVIP JPMorgan Core Bond Fund    JPMorgan Insurance Trust Core Bond Portfolio
May 1, 2023    AB VPS Discovery Value Portfolio    AB VPS Small/Mid Cap Value

Investment Valuation

Investments in mutual fund shares are carried in the statements of net assets at market value (net asset value of the underlying mutual fund). Investment transactions are accounted for on the trade date. Realized capital gains and losses on sales of investments are determined based on the average cost of investments sold. The difference between cost and current market value of investments owned on the day of measurement is recorded as unrealized appreciation or depreciation of investments.

The cost of investment purchases and proceeds from investments sold for the year ended December 31, 2023, were as follows:

 

Subaccount

    Cost of Purchases      Proceeds from Sales  

AB VPS Discovery Value Portfolio (a)

    $ 16,987      $ 8,571  

AB VPS Dynamic Asset Allocation

      234        1,445  

American Century VP Mid Cap Value

      78,376        42,261  

American Century VP Ultra®

      619,940        590,791  

American Century VP Value

      235,852        203,009  

American Funds IS® Asset Allocation

      139,368        555,466  

American Funds IS® Capital World Bond

      400        2,266  

American Funds IS® Global Growth

      330,519        309,793  

American Funds IS® Growth-Income

      119,279        135,956  

American Funds IS® International

      26,788        94,432  

American Funds IS® New World

      8,043        35,429  

BlackRock Equity Dividend V.I.

      83,237        108,198  

BlackRock Global Allocation V.I.

      15,862        103,513  

BlackRock High Yield V.I.

      33,724        32,890  

BNY Mellon IP MidCap Stock

      5,335        1,515  

BNY Mellon IP Small Cap Stock Index

      135,736        44,971  

BNY Mellon IP Technology Growth

      89,252        137,692  

BNY Mellon VIF Appreciation

      81,128        44,966  

ClearBridge Variable Aggressive Growth

      115,882        101,989  

ClearBridge Variable Small Cap Growth

      9,672        68,571  

Delaware Ivy VIP Asset Strategy

      4,141        25,805  

Fidelity® VIP Equity-Income

      37,745        157,109  

Fidelity® VIP Growth & Income

      94,900        52,227  

Fidelity® VIP Growth Opportunities

      79,180        177,211  

Fidelity® VIP High Income

      37,385        70,094  

Fidelity® VIP Overseas

      13,490        130,534  

Franklin Allocation VIP Fund

      7,570        21,206  

Franklin Income VIP Fund

      72,901        24,386  

Franklin Mutual Global Discovery VIP Fund

      104,923        85,945  

Franklin Small Cap Value VIP Fund

      12,958        7,092  

Franklin Strategic Income VIP Fund

      13,437        5,879  

Guggenheim VIF All Cap Value

      42,909        7,276  

Guggenheim VIF Alpha Opportunity

      2,485        4,679  

 

(a)

Name change. See Note 1.

 

43

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

1. Organization and Significant Accounting Policies (continued)

 

Subaccount

    Cost of Purchases      Proceeds from Sales  

Guggenheim VIF Floating Rate Strategies

    $ 48,720      $ 65,265  

Guggenheim VIF Global Managed Futures Strategy

      4,371        818  

Guggenheim VIF High Yield

      50,863        41,728  

Guggenheim VIF Large Cap Value

      79,270        56,539  

Guggenheim VIF Long Short Equity

      17,727        14,606  

Guggenheim VIF Managed Asset Allocation

      10,191        106,353  

Guggenheim VIF Multi-Hedge Strategies

      20,513        14,748  

Guggenheim VIF Small Cap Value

      56,029        43,389  

Guggenheim VIF SMid Cap Value

      159,913        61,935  

Guggenheim VIF StylePlus Large Core

      28,874        44,676  

Guggenheim VIF StylePlus Large Growth

      8,401        122,681  

Guggenheim VIF StylePlus Mid Growth

      167,726        334,879  

Guggenheim VIF StylePlus Small Growth

      19,701        65,746  

Guggenheim VIF Total Return Bond

      129,112        147,018  

Guggenheim VIF World Equity Income

      28,934        49,538  

Invesco V.I. American Value

      29,601        2,008  

Invesco V.I. Comstock

      139,930        59,721  

Invesco V.I. Core Plus Bond

      11,875        22,812  

Invesco V.I. Discovery Mid Cap Growth

      11,479        16,412  

Invesco V.I. Equity and Income

      76,164        119,912  

Invesco V.I. EVQ International Equity Fund

      40,205        59,244  

Invesco V.I. Global

      68,184        20,799  

Invesco V.I. Global Real Estate

      33,670        34,277  

Invesco V.I. Government Money Market

      64,427        161,492  

Invesco V.I. Government Securities

      41,722        30,412  

Invesco V.I. Health Care

      9,186        42,341  

Invesco V.I. Main Street Mid Cap Fund®

      45,278        24,398  

Invesco V.I. Main Street Small Cap Fund®

      46,703        42,565  

Janus Henderson VIT Enterprise

      172,487        230,250  

Janus Henderson VIT Research

      15,363        59,328  

Lord Abbett Series Bond-Debenture VC

      8,691        41,056  

Lord Abbett Series Developing Growth VC

      16,221        10,714  

LVIP JPMorgan Core Bond Fund (a)

      5,230        1,459  

MFS® VIT II Research International

      42,650        62,222  

MFS® VIT Total Return

      52,055        123,096  

MFS® VIT Utilities

      78,016        98,463  

Morgan Stanley VIF Emerging Markets Equity

      39,600        95,150  

Morningstar Aggressive Growth ETF Asset Allocation Portfolio

      8,370        2,220  

Morningstar Balanced ETF Asset Allocation Portfolio

      13,319        57,488  

Morningstar Conservative ETF Asset Allocation Portfolio

      1,800        91,072  

Morningstar Growth ETF Asset Allocation Portfolio

      8,451        24,732  

Morningstar Income and Growth ETF Asset Allocation Portfolio

      3,536        1,423  

Neuberger Berman AMT Sustainable Equity

      11,188        109,807  

PIMCO VIT All Asset

      4,679        5,052  

PIMCO VIT CommodityRealReturn Strategy

      43,783        23,716  

PIMCO VIT Emerging Markets Bond

      8,670        7,808  

PIMCO VIT International Bond Portfolio (U.S. Dollar-Hedged)

      76,865        41,214  

PIMCO VIT Low Duration

      62,519        177,689  

PIMCO VIT Real Return

      68,669        67,868  

 

(a)

Name change. See Note 1.

 

44

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

1. Organization and Significant Accounting Policies (continued)

 

Subaccount

    Cost of Purchases      Proceeds from Sales  

PIMCO VIT Total Return

    $ 82,895      $ 153,948  

Putnam VT Small Cap Value

      2,258        257  

Royce Micro-Cap

      7,936        12,190  

T. Rowe Price Health Sciences

      99,654        147,562  

Templeton Developing Markets VIP Fund

      13,388        15,483  

Templeton Global Bond VIP Fund

      256,165        229,394  

Western Asset Variable Global High Yield Bond

      1,269        461  

Market Risk

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 contractholders’ investments in the funds and the amounts reported in the statements of net assets. The contractholder assumes all of the investment performance risk for the subaccounts selected.

Annuity Assets

As of December 31, 2023, annuity reserves have not been established, as there are no contracts that have matured and are in the payout stage. Such reserves would be computed on the basis of published mortality tables using assumed interest rates that will provide reserves as prescribed by law. In cases where the payout option selected is life contingent, FSBL periodically recalculates the required annuity reserves, and any resulting adjustment is either charged or credited to FSBL and not to the Account.

Reinvestment of Dividends

Dividend and capital gain distributions paid by the mutual funds to the Account are reinvested in additional shares of each respective fund. Dividend income and capital gain distributions are recorded as income on the ex-dividend date.

Federal Income Taxes

The operations of the Account are included in the federal income tax return of FSBL, which is taxed as a life insurance company under the provisions of the Internal Revenue Code (IRC). Under the current provisions of the IRC, FSBL does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited under contracts. Based on this, no charge is being made currently to the Account for federal income taxes. FSBL will review periodically the status of this policy in the event of changes in the tax law.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Fair Value Measurements

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

 

45

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

1. Organization and Significant Accounting Policies (continued)

 

The Account invests in shares of open-end mutual funds, which process contractholders directed purchases, sales and transfers on a daily basis at the funds’ computed NAVs. The fair value of the Account’s assets is based on the NAVs of mutual funds, which are obtained from the custodians and reflect the fair values of the mutual fund investments. The NAV is calculated daily and is based on the fair values of the underlying securities.

Because the fund provides liquidity for the investments through purchases and redemptions at NAV, this may represent the fair value of the investment in the fund. That is, for an open-ended mutual fund, the fair value of an investment in the fund would not be expected to be higher than the amount that a new investor would be required to spend in order to directly invest in the mutual fund. Similarly, the hypothetical seller of the investment would not be expected to accept less in proceeds than it could receive by directly redeeming its investment with the fund.

The Account had no financial liabilities as of December 31, 2023.

2. Variable Annuity Contract Charges

AdvanceDesigns

Mortality and Expense Risk Charge: The mortality and expense risks assumed by FSBL are compensated for by a fee equivalent to a minimum annual rate of 1.20% of the average daily net assets. The mortality and expense risk charge is based on the daily value of the individual contract.

Administrative Charge: FSBL deducts a daily administrative charge equivalent to an annual rate of 0.15% of the average daily net asset value.

These charges are presented as expenses on the statements of changes in net assets under Mortality and expense risk and administrative charges line item.

Premium Tax Charge: When applicable, an amount for premium taxes is deducted as provided by pertinent state law either from the purchase payments or from the amount applied to effect an annuity at the time annuity payments commence.

Contract owner maintenance charges presented as a decrease in units on the statements of changes in net assets under the Maintenance charges and mortality adjustment line item may include the following:

 

  •  

Mortality and Expense Risk Charge: If the net asset value of an individual contract is less than $100,000, FSBL deducts an additional mortality and expense risk charge of 0.25% on contracts with a net asset value less than $25,000 and 0.10% on contracts with a net asset value of at least $25,000 but less than $100,000, as a contract level deduction.

 

  •  

Contingent Deferred Sales Charge (CDSC): FSBL deducts a CDSC (also referred to as a “withdrawal charge”) of up to 7% of any portion of a withdrawal, consisting of purchase payments, that exceed the free withdrawal amount for units withdrawn in the first seven years of the contract.

 

  •  

Account Administrative Charge: FSBL deducts an account administration charge of $30 annually, except for certain contracts based on a minimum account value and the period of time the contract has been in force.

 

  •  

Rider Charge: FSBL deducts an amount for each rider, equal to a percentage of the contract value, not to exceed a total charge of 1.70% of the contract value.

SecureDesigns

Mortality and Expense Risk Charge: Mortality and expense risks assumed by FSBL are compensated for by a fee equivalent to a minimum annual rate of 0.60% of the average daily net asset. The mortality and expense risk charge is based on the daily value of the individual contract.

 

46

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

2. Variable Annuity Contract Charges (continued)

 

Administrative Charge: FSBL deducts a daily administrative charge equivalent to an annual rate of 0.15% of the average daily net asset value.

These charges are presented as expenses on the statements of changes in net assets under Mortality and expense risk and administrative charges line item.

Premium Tax Charge: When applicable, an amount for state premium taxes is deducted as provided by pertinent state law either from the purchase payments or from the amount applied to effect an annuity at the time annuity payments commence.

Contract owner maintenance charges presented as a decrease in units on the statements of changes in net assets under the Maintenance charges and mortality adjustment line item may include the following:

 

  •  

Mortality and Expense Risk Charge: If the net asset value of an individual contract is less than $100,000, FSBL deducts an additional mortality and expense risk charge of 0.25% on contracts with a net asset value less than $25,000 and 0.10% on contracts with a net asset value of at least $25,000 but less than $100,000, as a contract level deduction.

 

  •  

Account Administrative Charge: FSBL deducts an account administration charge of $30 annually, except for certain contracts based on a minimum account value and the period of time the contract has been in force.

 

  •  

Contingent Deferred Sales Charge (CDSC): FSBL deducts a CDSC (also referred to as a “withdrawal charge”) of up to 7% of any portion of a withdrawal, consisting of purchase payments, that exceed the free withdrawal amount for units withdrawn in the first seven years of the contract.

 

  •  

Rider Charge: FSBL deducts an amount for each rider, equal to a percentage of contract value, not to exceed a total charge of 1.70% of the contract value.

 

47

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

3. Summary of Unit Transactions

 

The changes in units outstanding for the periods December 31, 2023 and 2022, were as follows:

 

     2023     2022  

Subaccount

    Units
Issued		      Units
Redeemed		     Net
Increase
(Decrease)		     Units
Issued		      Units
Redeemed		     Net
Increase
(Decrease)		  

AB VPS Discovery Value Portfolio(a)

      713        (581 )      132       2,121        (2,027 )      94  

AB VPS Dynamic Asset Allocation

      125        (130 )      (5 )      143        (193 )      (50 ) 

American Century VP Mid Cap Value

      1,306        (2,024 )      (718 )      2,909        (2,369 )      540  

American Century VP Ultra®

      12,749        (15,837 )      (3,088 )      13,613        (6,423 )      7,190  

American Century VP Value

      6,205        (8,105 )      (1,900 )      4,387        (6,010 )      (1,623 ) 

American Funds IS® Asset Allocation

      6,886        (42,767 )      (35,881 )      15,265        (41,169 )      (25,904 ) 

American Funds IS® Capital World Bond

      352        (271 )      81       758        (8,108 )      (7,350 ) 

American Funds IS® Global Growth

      12,453        (18,867 )      (6,414 )      22,661        (21,519 )      1,142  

American Funds IS® Growth-Income

      4,725        (7,647 )      (2,922 )      6,931        (12,061 )      (5,130 ) 

American Funds IS® International

      3,477        (10,365 )      (6,888 )      4,423        (5,591 )      (1,168 ) 

American Funds IS® New World

      1,089        (3,386 )      (2,297 )      2,158        (2,267 )      (109 ) 

BlackRock Equity Dividend V.I.

      3,791        (7,085 )      (3,294 )      18,613        (12,059 )      6,554  

BlackRock Global Allocation V.I.

      1,883        (9,897 )      (8,014 )      3,956        (10,953 )      (6,997 ) 

BlackRock High Yield V.I.

      2,855        (3,297 )      (442 )      8,499        (17,061 )      (8,562 ) 

BNY Mellon IP MidCap Stock

      393        (84 )      309       658        (1,765 )      (1,107 ) 

BNY Mellon IP Small Cap Stock Index

      7,555        (3,069 )      4,486       7,685        (8,506 )      (821 ) 

BNY Mellon IP Technology Growth

      4,983        (4,545 )      438       5,727        (4,881 )      846  

BNY Mellon VIF Appreciation

      3,400        (2,466 )      934       11,542        (10,928 )      614  

ClearBridge Variable Aggressive Growth

      3,553        (6,191 )      (2,638 )      11,083        (13,358 )      (2,275 ) 

ClearBridge Variable Small Cap Growth

      1,031        (2,978 )      (1,947 )      2,951        (970 )      1,981  

Delaware Ivy VIP Asset Strategy

      563        (2,614 )      (2,051 )      2,012        (3,702 )      (1,690 ) 

Fidelity® VIP Equity-Income

      2,335        (11,008 )      (8,673 )      4,260        (6,400 )      (2,140 ) 

Fidelity® VIP Growth & Income

      4,431        (2,820 )      1,611       6,625        (2,044 )      4,581  

Fidelity® VIP Growth Opportunities

      4,969        (6,488 )      (1,519 )      6,751        (6,090 )      661  

Fidelity® VIP High Income

      2,420        (7,490 )      (5,070 )      5,934        (5,559 )      375  

Fidelity® VIP Overseas

      2,212        (11,908 )      (9,696 )      15,723        (9,510 )      6,213  

Franklin Allocation VIP Fund

      720        (1,758 )      (1,038 )      814        (6,149 )      (5,335 ) 

Franklin Income VIP Fund

      2,313        (1,832 )      481       4,313        (7,068 )      (2,755 ) 

Franklin Mutual Global Discovery VIP Fund

      5,250        (6,608 )      (1,358 )      6,611        (9,696 )      (3,085 ) 

 

(a)

Name change. See Note 1.

 

48

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

3. Summary of Unit Transactions (continued)

 

     2023     2022  

Subaccount

    Units
Issued		      Units
Redeemed		     Net
Increase
(Decrease)		     Units
Issued		      Units
Redeemed		     Net
Increase
(Decrease)		  

Franklin Small Cap Value VIP Fund

      557        (412 )      145       380        (2,689 )      (2,309 ) 

Franklin Strategic Income VIP Fund

      1,554        (669 )      885       959        (2,653 )      (1,694 ) 

Guggenheim VIF All Cap Value

      1,164        (249 )      915       1,061        (3,331 )      (2,270 ) 

Guggenheim VIF Alpha Opportunity

      289        (281 )      8       271        (159 )      112  

Guggenheim VIF Floating Rate Strategies

      4,889        (6,326 )      (1,437 )      5,208        (4,881 )      327  

Guggenheim VIF Global Managed Futures Strategy

      478        (78 )      400       430        (86 )      344  

Guggenheim VIF High Yield

      1,042        (1,393 )      (351 )      1,441        (4,535 )      (3,094 ) 

Guggenheim VIF Large Cap Value

      1,317        (2,955 )      (1,638 )      1,667        (4,986 )      (3,319 ) 

Guggenheim VIF Long Short Equity

      1,693        (1,169 )      524       480        (2,066 )      (1,586 ) 

Guggenheim VIF Managed Asset Allocation

      1,205        (7,941 )      (6,736 )      1,910        (6,557 )      (4,647 ) 

Guggenheim VIF Multi-Hedge Strategies

      3,578        (2,472 )      1,106       6,653        (989 )      5,664  

Guggenheim VIF Small Cap Value

      1,054        (1,278 )      (224 )      2,246        (1,887 )      359  

Guggenheim VIF SMid Cap Value

      2,363        (1,395 )      968       2,061        (3,513 )      (1,452 ) 

Guggenheim VIF StylePlus Large Core

      2,715        (3,093 )      (378 )      6,125        (6,498 )      (373 ) 

Guggenheim VIF StylePlus Large Growth

      790        (7,380 )      (6,590 )      1,915        (3,931 )      (2,016 ) 

Guggenheim VIF StylePlus Mid Growth

      13,448        (20,176 )      (6,728 )      23,460        (14,576 )      8,884  

Guggenheim VIF StylePlus Small Growth

      3,454        (5,815 )      (2,361 )      4,271        (2,248 )      2,023  

Guggenheim VIF Total Return Bond

      12,975        (14,837 )      (1,862 )      7,183        (16,668 )      (9,485 ) 

Guggenheim VIF World Equity Income

      2,603        (3,787 )      (1,184 )      6,991        (11,839 )      (4,848 ) 

Invesco V.I. American Value

      426        (104 )      322       12,862        (70 )      12,792  

Invesco V.I. Comstock

      6,804        (3,322 )      3,482       2,142        (4,167 )      (2,025 ) 

Invesco V.I. Core Plus Bond

      1,421        (2,287 )      (866 )      25,773        (2,628 )      23,145  

Invesco V.I. Discovery Mid Cap Growth

      1,434        (912 )      522       3,443        (2,767 )      676  

Invesco V.I. Equity and Income

      3,141        (7,327 )      (4,186 )      4,535        (18,829 )      (14,294 ) 

Invesco V.I. EVQ International Equity Fund

      3,298        (3,734 )      (436 )      3,724        (7,651 )      (3,927 ) 

Invesco V.I. Global

      1,300        (1,250 )      50       2,335        (2,226 )      109  

Invesco V.I. Global Real Estate

      2,462        (1,967 )      495       2,294        (3,892 )      (1,598 ) 

Invesco V.I. Government Money Market

      6,870        (19,442 )      (12,572 )      54,524        (76,153 )      (21,629 ) 

Invesco V.I. Government Securities

      7,234        (4,012 )      3,222       6,164        (18,100 )      (11,936 ) 

Invesco V.I. Health Care

      677        (1,829 )      (1,152 )      1,133        (301 )      832  

Invesco V.I. Main Street Mid Cap Fund®

      2,355        (1,084 )      1,271       705        (1,164 )      (459 ) 

Invesco V.I. Main Street Small Cap Fund®

      1,554        (1,193 )      361       1,120        (1,169 )      (49 ) 

Janus Henderson VIT Enterprise

      3,252        (8,454 )      (5,202 )      3,037        (4,537 )      (1,500 ) 

 

49

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

3. Summary of Unit Transactions (continued)

 

     2023     2022  

Subaccount

    Units
Issued		      Units
Redeemed		     Net
Increase
(Decrease)		     Units
Issued		      Units
Redeemed		     Net
Increase
(Decrease)		  

Janus Henderson VIT Research

      2,108        (2,565 )      (457 )      3,247        (492 )      2,755  

Lord Abbett Series Bond-Debenture VC

      615        (4,278 )      (3,663 )      1,409        (5,493 )      (4,084 ) 

Lord Abbett Series Developing Growth VC

      1,682        (683 )      999       2,441        (4,697 )      (2,256 ) 

LVIP JPMorgan Core Bond Fund(a)

      639        (90 )      549       1,220        (19,364 )      (18,144 ) 

MFS® VIT II Research International

      5,785        (7,133 )      (1,348 )      2,364        (2,235 )      129  

MFS® VIT Total Return

      2,317        (8,597 )      (6,280 )      3,554        (7,355 )      (3,801 ) 

MFS® VIT Utilities

      2,168        (4,810 )      (2,642 )      3,745        (6,169 )      (2,424 ) 

Morgan Stanley VIF Emerging Markets Equity

      5,686        (14,122 )      (8,436 )      10,995        (10,883 )      112  

Morningstar Aggressive Growth ETF Asset Allocation Portfolio

      566        (83 )      483       661        (218 )      443  

Morningstar Balanced ETF Asset Allocation Portfolio

      1,023        (5,341 )      (4,318 )      2,593        (1,342 )      1,251  

Morningstar Conservative ETF Asset Allocation Portfolio

      451        (10,988 )      (10,537 )      15,375        (15,303 )      72  

Morningstar Growth ETF Asset Allocation Portfolio

      529        (1,988 )      (1,459 )      1,947        (637 )      1,310  

Morningstar Income and Growth ETF Asset Allocation Portfolio

      368        (73 )      295       475        (5,400 )      (4,925 ) 

Neuberger Berman AMT Sustainable Equity

      648        (3,532 )      (2,884 )      4,651        (8,571 )      (3,920 ) 

PIMCO VIT All Asset

      369        (327 )      42       539        (598 )      (59 ) 

PIMCO VIT CommodityRealReturn Strategy

      3,497        (4,444 )      (947 )      11,027        (14,594 )      (3,567 ) 

PIMCO VIT Emerging Markets Bond

      837        (824 )      13       162        (2,070 )      (1,908 ) 

PIMCO VIT International Bond Portfolio (U.S. Dollar-Hedged)

      7,031        (3,918 )      3,113       2,276        (8,654 )      (6,378 ) 

PIMCO VIT Low Duration

      8,395        (23,985 )      (15,590 )      21,505        (26,883 )      (5,378 ) 

PIMCO VIT Real Return

      7,333        (6,538 )      795       6,813        (18,743 )      (11,930 ) 

PIMCO VIT Total Return

      10,414        (19,364 )      (8,950 )      6,792        (13,199 )      (6,407 ) 

Putnam VT Small Cap Value

      53        (9 )      44       61        (7 )      54  

Royce Micro-Cap

      1,113        (974 )      139       1,226        (2,879 )      (1,653 ) 

T. Rowe Price Health Sciences

      4,979        (7,464 )      (2,485 )      8,336        (8,858 )      (522 ) 

Templeton Developing Markets VIP Fund

      1,725        (1,671 )      54       4,426        (2,502 )      1,924  

Templeton Global Bond VIP Fund

      50,165        (35,325 )      14,840       26,860        (59,912 )      (33,052 ) 

Western Asset Variable Global High Yield Bond

      79        (24 )      55       79        (305 )      (226 ) 

 

(a)

Name change. See Note 1.

 

50

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights

 

The Account has a number of products, which have unique combinations of features and fees that are charged against the contract owner’s account balance. Differences in the fee structures result in a variety of unit values, expense ratios, and total returns. The information presented below identifies the range of lowest to highest expense ratios and the corresponding total return. The summary may not reflect the minimum and maximum contract charges offered by the Account as contract owners may not have selected all available and applicable contract options as discussed in Note 2.

A summary of units outstanding, unit values, net assets, expense ratios, investment income ratios and total return ratios for each of the five years in the period ended December 31, 2023, were as follows:

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets
($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

AB VPS Discovery Value Portfolio (a)

                          

2023

      10,209        13.79        13.79        140,749        0.01        0.75        0.75        12.57       12.57  

2022

      10,077        12.25        12.25        123,412        0.01        0.75        0.75        (18.87 )      (18.87 ) 

2021

      9,983        15.10        15.10        150,748        0.01        0.75        0.75        30.62       30.62  

2020

      9,347        11.56        11.56        108,055        0.01        0.75        0.75        (0.77 )      (0.77 ) 

2019

      9,743        11.65        11.65        113,498        0.34        0.75        0.75        15.46       15.46  

AB VPS Dynamic Asset Allocation

                          

2023

      4,162        9.40        9.40        39,137        0.01        0.75        0.75        9.30       9.30  

2022

      4,167        8.60        8.60        35,844        0.02        0.75        0.75        (21.68 )      (21.68 ) 

2021

      4,217        10.98        10.98        46,311        0.02        0.75        0.75        5.27       5.27  

2020

      4,189        10.43        10.43        43,706        0.01        0.75        0.75        0.97       0.97  

2019

      4,027        10.33        10.33        41,608        1.84        0.75        0.75        10.96       10.96  

American Century VP Mid Cap Value

                          

2023

      30,043        19.17        19.17        575,388        0.02        0.75        0.75        2.13       2.13  

2022

      30,761        18.77        18.77        576,896        0.02        0.75        0.75        (5.01 )      (5.01 ) 

2021

      30,221        19.76        19.76        596,603        0.01        0.75        0.75        18.47       18.47  

2020

      32,857        16.19        16.68        547,465        0.02        0.75        1.35        (3.23 )      (2.63 ) 

2019

      33,927        16.73        17.13        580,633        1.96        0.75        1.35        23.47       24.22  

 

(a)

Name change. See Note 1.

 

51

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets ($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

American Century VP Ultra®

                          

2023

      127,088        35.03        39.71        5,032,018        —         0.75        1.35        37.16       38.03  

2022

      130,176        25.54        28.77        3,735,562        —         0.75        1.35        (35.31 )      (34.94 ) 

2021

      122,986        39.48        44.22        5,423,905        —         0.75        1.35        17.75       18.46  

2020

      126,012        33.53        37.33        4,692,440        —         0.75        1.35        43.11       44.02  

2019

      144,073        23.43        25.92        3,726,846        —         0.75        1.35        28.74       29.54  

American Century VP Value

                          

2023

      46,685        23.08        26.16        1,216,119        0.02        0.75        1.35        4.34       4.98  

2022

      48,585        22.12        24.92        1,205,728        0.02        0.75        1.35        (3.95 )      (3.37 ) 

2021

      50,208        23.03        25.79        1,289,872        0.02        0.75        1.35        19.02       19.73  

2020

      51,184        19.35        21.54        1,098,687        0.02        0.75        1.35        (3.49 )      (2.93 ) 

2019

      60,056        20.05        22.19        1,328,168        2.10        0.75        1.35        21.52       22.26  

American Funds IS® Asset Allocation

                          

2023

      129,291        13.54        13.54        1,749,919        0.02        0.75        0.75        9.90       9.90  

2022

      165,172        12.32        12.32        2,035,540        0.02        0.75        0.75        (16.87 )      (16.87 ) 

2021

      191,076        14.82        14.82        2,831,316        0.01        0.75        0.75        10.60       10.60  

2020

      195,909        13.40        13.40        2,624,384        0.02        0.75        0.75        8.06       8.06  

2019

      153,193        12.40        12.40        1,899,968        1.95        0.75        0.75        16.43       16.43  

American Funds IS® Capital World Bond

                          

2023

      9,637        6.76        6.76        65,162        —         0.75        0.75        1.96       1.96  

2022

      9,556        6.63        6.63        63,352        0.00        0.75        0.75        (20.88 )      (20.88 ) 

2021

      16,906        8.38        8.38        141,604        0.02        0.75        0.75        (8.62 )      (8.62 ) 

2020

      16,172        9.17        9.17        148,323        0.01        0.75        0.75        5.52       5.52  

2019

      15,450        8.69        8.69        134,201        1.41        0.75        0.75        3.58       3.58  

American Funds IS® Global Growth

                          

2023

      156,215        17.25        17.25        2,694,981        0.01        0.75        0.75        17.83       17.83  

2022

      162,629        14.64        14.64        2,381,690        0.00        0.75        0.75        (27.67 )      (27.67 ) 

2021

      161,487        20.24        20.24        3,269,653        0.00        0.75        0.75        11.82       11.82  

2020

      156,481        18.10        18.10        2,832,455        0.00        0.75        0.75        25.35       25.35  

2019

      149,781        14.44        14.44        2,162,803        0.99        0.75        0.75        29.97       29.97  

 

52

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets ($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

American Funds IS® Growth-Income

                          

2023

      68,153        18.81        18.81        1,281,527        0.01        0.75        0.75        21.20       21.20  

2022

      71,075        15.52        15.52        1,102,701        0.01        0.75        0.75        (19.75 )      (19.75 ) 

2021

      76,205        19.34        19.34        1,473,460        0.01        0.75        0.75        19.24       19.24  

2020

      76,331        16.22        16.22        1,237,720        0.01        0.75        0.75        9.08       9.08  

2019

      92,883        14.87        14.87        1,381,159        1.59        0.75        0.75        21.19       21.19  

American Funds IS® International

                          

2023

      23,898        9.42        9.42        225,114        0.01        0.75        0.75        11.35       11.35  

2022

      30,786        8.46        8.46        260,567        0.01        0.75        0.75        (23.99 )      (23.99 ) 

2021

      31,954        11.13        11.13        355,484        0.02        0.75        0.75        (5.28 )      (5.28 ) 

2020

      32,172        11.75        11.75        378,049        0.00        0.75        0.75        9.40       9.40  

2019

      41,869        10.74        10.74        449,482        1.34        0.75        0.75        18.15       18.15  

American Funds IS® New World

                          

2023

      13,480        10.81        10.81        145,661        0.01        0.75        0.75        11.44       11.44  

2022

      15,777        9.70        9.70        152,989        0.01        0.75        0.75        (25.10 )      (25.10 ) 

2021

      15,886        12.95        12.95        205,679        0.01        0.75        0.75        0.78       0.78  

2020

      11,681        12.85        12.85        150,074        0.00        0.75        0.75        18.76       18.76  

2019

      11,058        10.82        10.82        119,640        0.82        0.75        0.75        24.08       24.08  

BlackRock Equity Dividend V.I.

                          

2023

      51,597        15.78        15.78        814,126        0.02        0.75        0.75        7.86       7.86  

2022

      54,891        14.63        14.63        802,922        0.01        0.75        0.75        (7.64 )      (7.64 ) 

2021

      48,337        15.84        15.84        765,420        0.01        0.75        0.75        15.87       15.87  

2020

      43,188        13.67        13.67        590,203        0.02        0.75        0.75        (0.22 )      (0.22 ) 

2019

      36,990        13.70        13.70        506,889        1.87        0.75        0.75        22.76       22.76  

BlackRock Global Allocation V.I.

                          

2023

      26,304        10.82        10.82        284,681        0.02        0.75        0.75        8.31       8.31  

2022

      34,318        9.99        9.99        342,827        —         0.75        0.75        (19.17 )      (19.17 ) 

2021

      41,315        12.36        12.36        510,550        0.01        0.75        0.75        2.49       2.49  

2020

      49,482        12.06        12.06        596,582        0.01        0.75        0.75        16.30       16.30  

2019

      36,640        10.37        10.37        380,009        1.45        0.75        0.75        13.46       13.46  

 

53

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets ($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

BlackRock High Yield V.I.

                          

2023

      19,546        10.17        10.17        198,773        0.06        0.75        0.75        8.77       8.77  

2022

      19,988        9.35        9.35        186,885        0.05        0.75        0.75        (13.90 )      (13.90 ) 

2021

      28,550        10.86        10.86        309,897        0.04        0.75        0.75        1.40       1.40  

2020

      28,437        10.71        10.71        304,600        0.05        0.75        0.75        3.08       3.08  

2019

      21,046        10.39        10.39        218,667        5.22        0.75        0.75        10.65       10.65  

BNY Mellon IP MidCap Stock

                          

2023

      8,142        13.67        13.67        110,831        0.01        0.75        0.75        13.63       13.63  

2022

      7,833        12.03        12.03        93,816        0.00        0.75        0.75        (17.38 )      (17.38 ) 

2021

      8,940        14.56        14.56        129,730        0.00        0.75        0.75        20.93       20.93  

2020

      9,592        12.04        12.04        115,120        0.00        0.75        0.75        3.88       3.88  

2019

      9,357        11.59        11.59        108,142        0.39        0.75        0.75        15.44       15.44  

BNY Mellon IP Small Cap Stock Index

                          

2023

      65,073        15.40        15.40        1,001,662        0.01        0.75        0.75        11.19       11.19  

2022

      60,587        13.85        13.85        839,031        0.01        0.75        0.75        (19.71 )      (19.71 ) 

2021

      61,408        17.25        17.25        1,059,107        0.01        0.75        0.75        21.48       21.48  

2020

      59,803        14.20        14.20        848,912        0.01        0.75        0.75        6.53       6.53  

2019

      64,229        13.33        13.33        855,810        0.86        0.75        0.75        17.76       17.76  

BNY Mellon IP Technology Growth

                          

2023

      53,650        30.92        34.84        1,862,730        —         0.75        1.35        52.24       53.21  

2022

      53,212        20.31        22.74        1,206,385        —         0.75        1.35        (48.79 )      (48.48 ) 

2021

      52,366        39.66        44.14        2,303,121        —         0.75        1.35        7.83       8.48  

2020

      53,899        36.78        40.69        2,185,631        0.00        0.75        1.35        62.31       63.35  

2019

      51,796        22.66        24.91        1,286,130        —         0.75        1.35        20.21       20.86  

BNY Mellon VIF Appreciation

                          

2023

      19,246        18.96        18.96        364,855        0.00        0.75        0.75        16.25       16.25  

2022

      18,312        16.31        16.31        298,675        0.00        0.75        0.75        (21.25 )      (21.25 ) 

2021

      17,698        20.71        20.71        366,583        0.00        0.75        0.75        22.11       22.11  

2020

      16,075        16.96        16.96        272,673        0.00        0.75        0.75        18.77       18.77  

2019

      551        14.28        14.28        7,861        0.93        0.75        0.75        30.77       30.77  

 

54

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets ($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

ClearBridge Variable Aggressive Growth

                          

2023

      50,263        16.07        18.14        910,838        0.00        0.75        1.35        18.86       19.58  

2022

      52,901        13.52        15.17        801,863        —         0.75        1.35        (29.73 )      (29.24 ) 

2021

      55,176        19.24        21.44        1,182,547        0.00        0.75        1.35        5.37       5.98  

2020

      67,745        18.26        20.23        1,367,760        0.01        0.75        1.35        12.72       13.33  

2019

      65,122        16.20        17.85        1,160,859        0.76        0.75        1.35        19.38       20.20  

ClearBridge Variable Small Cap Growth

                          

2023

      17,472        20.55        23.33        407,451        —         0.75        1.35        3.79       4.43  

2022

      19,419        22.34        22.34        433,699        —         0.75        0.75        (31.47 )      (31.47 ) 

2021

      17,438        29.06        32.60        568,121        —         0.75        1.35        7.79       8.49  

2020

      21,601        26.96        30.05        648,149        —         0.75        1.35        37.13       37.97  

2019

      20,425        19.66        21.78        444,618        —         0.75        1.35        21.51       22.22  

Delaware Ivy VIP Asset Strategy

                          

2023

      7,570        10.12        10.12        76,650        0.02        0.75        0.75        9.76       9.76  

2022

      9,621        9.22        9.22        88,762        0.01        0.75        0.75        (17.90 )      (17.90 ) 

2021

      11,311        11.23        11.23        127,054        0.02        0.75        0.75        6.34       6.34  

2020

      12,567        10.56        10.56        132,701        0.02        0.75        0.75        9.66       9.66  

2019

      9,121        9.63        9.63        87,802        2.17        0.75        0.75        17.30       17.30  

Fidelity® VIP Equity-Income

                          

2023

      31,484        14.95        14.95        472,305        0.02        0.75        0.75        6.33       6.33  

2022

      40,157        14.06        14.06        566,155        0.02        0.75        0.75        (8.70 )      (8.70 ) 

2021

      42,297        15.40        15.40        653,112        0.02        0.75        0.75        20.03       20.03  

2020

      47,317        12.83        12.83        608,539        0.01        0.75        0.75        2.48       2.48  

2019

      49,828        12.52        12.52        625,115        2.11        0.75        0.75        22.39       22.39  

Fidelity® VIP Growth & Income

                          

2023

      57,004        17.74        17.74        1,010,989        0.02        0.75        0.75        14.01       14.01  

2022

      55,393        15.56        15.56        861,698        0.01        0.75        0.75        (8.63 )      (8.63 ) 

2021

      50,812        17.03        17.03        865,268        0.02        0.75        0.75        21.04       21.04  

2020

      50,175        14.07        14.07        706,027        0.02        0.75        0.75        3.61       3.61  

2019

      43,771        13.58        13.58        594,494        3.44        0.75        0.75        24.93       24.93  

 

55

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets ($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

Fidelity® VIP Growth Opportunities

                          

2023

      56,124        29.72        29.72        1,667,660        —         0.75        0.75        39.99       39.99  

2022

      57,643        21.23        21.23        1,223,592        —         0.75        0.75        (40.57 )      (40.57 ) 

2021

      56,982        35.72        35.72        2,035,465        —         0.75        0.75        7.56       7.56  

2020

      56,843        33.21        33.21        1,887,852        —         0.75        0.75        62.00       62.00  

2019

      56,691        20.50        20.50        1,162,121        —         0.75        0.75        35.31       35.31  

Fidelity® VIP High Income

                          

2023

      70,205        9.20        9.20        646,037        0.05        0.75        0.75        6.24       6.24  

2022

      75,275        8.66        8.66        652,348        0.05        0.75        0.75        (14.93 )      (14.93 ) 

2021

      74,900        10.18        10.18        763,022        0.05        0.75        0.75        0.39       0.39  

2020

      73,930        10.14        10.14        749,790        0.05        0.75        0.75        (1.36 )      (1.36 ) 

2019

      68,189        10.28        10.28        700,994        6.27        0.75        0.75        10.54       10.54  

Fidelity® VIP Overseas

                          

2023

      36,833        11.33        11.33        417,242        0.01        0.75        0.75        15.85       15.85  

2022

      46,529        9.78        9.78        455,156        0.01        0.75        0.75        (27.45 )      (27.45 ) 

2021

      40,316        13.48        13.48        543,591        0.00        0.75        0.75        15.02       15.02  

2020

      39,426        11.72        11.72        462,273        0.00        0.75        0.75        11.09       11.09  

2019

      28,578        10.55        10.55        301,679        1.44        0.75        0.75        22.82       22.82  

Franklin Allocation VIP Fund

                          

2023

      21,007        11.71        11.71        245,933        0.01        0.75        0.75        10.47       10.47  

2022

      22,045        10.60        10.60        233,753        0.01        0.75        0.75        (19.27 )      (19.27 ) 

2021

      27,380        13.13        13.13        359,605        0.02        0.75        0.75        7.36       7.36  

2020

      33,444        12.23        12.23        408,852        0.01        0.75        0.75        7.66       7.66  

2019

      32,539        11.36        11.36        369,609        3.33        0.75        0.75        15.21       15.21  

Franklin Income VIP Fund

                          

2023

      49,420        11.49        12.06        594,645        0.05        0.75        1.35        3.98       4.69  

2022

      48,939        11.05        11.52        563,091        0.05        0.75        1.35        (9.50 )      (9.00 ) 

2021

      51,694        12.21        12.66        653,228        0.05        0.75        1.35        11.71       12.53  

2020

      52,617        10.93        11.25        591,689        0.05        0.75        1.35        (3.53 )      (3.10 ) 

2019

      58,983        11.33        11.61        683,825        5.47        0.75        1.35        11.08       11.85  

 

56

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets ($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

Franklin Mutual Global Discovery VIP Fund

 

                       

2023

      70,167        12.39        13.59        953,642        0.02        0.75        1.35        15.15       15.96  

2022

      71,525        10.76        11.72        839,380        0.01        0.75        1.35        (8.74 )      (8.29 ) 

2021

      74,610        11.79        12.78        954,132        0.03        0.75        1.35        14.02       14.72  

2020

      75,357        10.34        11.14        839,814        0.02        0.75        1.35        (8.58 )      (8.01 ) 

2019

      79,373        11.31        12.11        961,542        1.71        0.75        1.35        19.05       19.90  

Franklin Small Cap Value VIP Fund

                          

2023

      10,252        16.41        16.41        168,666        0.01        0.75        0.75        8.60       8.60  

2022

      10,107        15.11        15.11        153,105        0.01        0.75        0.75        (13.36 )      (13.36 ) 

2021

      12,416        16.88        17.44        216,969        0.01        0.75        1.35        20.06       20.78  

2020

      16,053        14.06        14.44        232,173        0.01        0.75        1.35        0.64       1.26  

2019

      18,000        13.97        14.26        256,689        1.02        0.75        1.35        20.95       21.78  

Franklin Strategic Income VIP Fund

                          

2023

      12,609        8.09        8.09        101,937        0.04        0.75        0.75        4.25       4.25  

2022

      11,724        7.76        7.76        90,989        0.05        0.75        0.75        (14.06 )      (14.06 ) 

2021

      13,418        9.03        9.03        121,138        0.03        0.75        0.75        (1.63 )      (1.63 ) 

2020

      12,442        9.18        9.18        114,210        0.04        0.75        0.75        (0.33 )      (0.33 ) 

2019

      13,626        9.21        9.21        125,551        5.35        0.75        0.75        4.07       4.07  

Guggenheim VIF All Cap Value

                          

2023

      12,219        23.32        23.32        284,983        0.01        0.75        0.75        4.53       4.53  

2022

      11,304        17.59        22.31        252,163        0.01        0.75        1.35        (5.33 )      (4.82 ) 

2021

      13,574        18.58        23.44        315,746        0.02        0.75        1.35        21.52       22.27  

2020

      21,033        15.29        19.17        402,005        0.01        0.75        1.35        (2.49 )      (1.89 ) 

2019

      31,026        15.68        19.54        605,010        1.25        0.75        1.35        18.43       19.22  

Guggenheim VIF Alpha Opportunity

                          

2023

      4,183        16.35        16.35        68,514        0.00        0.75        0.75        4.34       4.34  

2022

      4,175        15.67        15.67        65,498        0.00        0.75        0.75        (11.87 )      (11.87 ) 

2021

      4,063        17.78        17.78        72,348        0.01        0.75        0.75        9.62       9.62  

2020

      3,936        14.59        16.22        63,951        0.01        0.75        1.35        (4.01 )      (3.45 ) 

2019

      7,089        15.20        16.80        119,181        0.17        0.75        1.35        (6.63 )      (6.04 ) 

 

57

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets ($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

Guggenheim VIF Floating Rate Strategies

 

                       

2023

      129,870        9.58        9.58        1,244,227        0.03        0.75        0.75        7.04       7.04  

2022

      131,307        8.95        8.95        1,175,365        0.02        0.75        0.75        (4.48 )      (4.48 ) 

2021

      130,980        9.37        9.37        1,227,732        0.02        0.75        0.75        (1.37 )      (1.37 ) 

2020

      127,892        9.50        9.50        1,214,268        0.06        0.75        0.75        (3.65 )      (3.65 ) 

2019

      126,461        9.86        9.86        1,246,528        5.58        0.75        0.75        3.68       3.68  

Guggenheim VIF Global Managed Futures Strategy

 

                    

2023

      14,203        5.05        5.05        71,764        0.04        0.75        0.75        —        —   

2022

      13,803        5.05        5.05        69,753        0.03        0.75        0.75        7.22       7.22  

2021

      13,459        4.71        4.71        63,452        —         0.75        0.75        (2.89 )      (2.89 ) 

2020

      13,695        4.85        4.85        66,418        0.04        0.75        0.75        (1.22 )      (1.22 ) 

2019

      12,143        4.91        4.91        59,591        0.91        0.75        0.75        4.25       4.25  

Guggenheim VIF High Yield

                          

2023

      25,800        15.22        32.76        792,191        0.06        0.75        1.35        7.26       7.91  

2022

      26,151        14.19        30.36        740,192        0.06        0.75        1.35        (13.58 )      (13.01 ) 

2021

      29,245        16.42        34.90        927,988        0.05        0.75        1.35        0.92       1.51  

2020

      27,625        16.27        34.38        885,812        0.07        0.75        1.35        0.18       0.79  

2019

      35,057        16.24        34.11        1,100,982        7.50        0.75        1.35        6.91       7.57  

Guggenheim VIF Large Cap Value

                          

2023

      35,305        18.58        18.70        655,522        0.02        0.75        1.35        4.64       5.21  

2022

      36,943        17.66        17.87        651,801        0.01        0.75        1.35        (5.55 )      (4.90 ) 

2021

      40,262        18.57        18.92        747,458        0.02        0.75        1.35        21.67       22.33  

2020

      51,732        15.18        15.55        784,893        0.02        0.75        1.35        (2.20 )      (1.56 ) 

2019

      51,223        15.42        15.90        789,682        1.75        0.75        1.35        16.65       17.35  

Guggenheim VIF Long Short Equity

                          

2023

      5,784        11.70        13.26        75,375        0.00        0.75        1.35        7.93       8.60  

2022

      5,260        10.84        12.21        64,239        0.00        0.75        1.35        (18.00 )      (17.56 ) 

2021

      6,846        13.22        14.81        100,035        0.01        0.75        1.35        18.46       19.24  

2020

      6,422        11.16        12.42        78,667        0.01        0.75        1.35        0.45       1.06  

2019

      8,163        11.11        12.29        98,619        0.55        0.75        1.35        1.09       1.65  

 

58

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets ($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

Guggenheim VIF Managed Asset Allocation

 

                       

2023

      31,873        13.97        14.05        445,612        0.01        0.75        1.35        9.25       9.91  

2022

      38,609        12.71        12.86        491,093        0.01        0.75        1.35        (20.12 )      (19.66 ) 

2021

      43,256        15.82        16.10        684,602        0.01        0.75        1.35        7.69       8.36  

2020

      39,536        14.60        14.95        577,725        0.02        0.75        1.35        7.79       8.39  

2019

      42,933        13.47        13.87        578,599        1.63        0.75        1.35        14.91       15.72  

Guggenheim VIF Multi-Hedge Strategies

 

                       

2023

      15,393        5.69        6.15        94,078        0.03        0.75        1.35        —        0.65  

2022

      14,287        5.69        6.11        87,065        0.01        0.75        1.35        (7.63 )      (7.00 ) 

2021

      8,623        6.16        6.57        56,395        —         0.75        1.35        3.53       4.12  

2020

      8,087        5.95        6.31        50,843        0.02        0.75        1.35        2.76       3.44  

2019

      3,337        5.79        6.10        20,464        1.85        0.75        1.35        0.52       1.16  

Guggenheim VIF Small Cap Value

                          

2023

      9,719        26.88        40.78        396,377        0.01        0.75        1.35        5.58       6.25  

2022

      9,943        25.46        38.38        375,823        0.01        0.75        1.35        (7.82 )      (7.27 ) 

2021

      9,584        27.62        41.39        394,141        0.01        0.75        1.35        20.82       21.52  

2020

      11,826        22.86        34.06        402,799        0.01        0.75        1.35        (5.22 )      (4.62 ) 

2019

      14,021        24.12        35.71        500,767        0.79        0.75        1.35        17.37       18.05  

Guggenheim VIF SMid Cap Value

                          

2023

      27,861        29.84        44.30        1,226,092        0.01        0.75        1.35        5.07       5.70  

2022

      26,893        28.40        41.91        1,119,342        0.01        0.75        1.35        (6.02 )      (5.46 ) 

2021

      28,345        30.22        44.33        1,248,305        0.02        0.75        1.35        18.46       19.20  

2020

      35,116        25.51        37.19        1,297,421        0.01        0.75        1.35        (0.16 )      0.43  

2019

      37,341        25.55        37.03        1,371,975        0.88        0.75        1.35        21.32       22.05  

Guggenheim VIF StylePlus Large Core

                          

2023

      39,308        14.41        17.51        578,704        0.02        0.75        1.35        21.51       22.22  

2022

      39,686        11.79        14.41        477,451        0.01        0.75        1.35        (24.04 )      (23.54 ) 

2021

      40,059        15.42        18.97        633,084        0.01        0.75        1.35        23.02       23.76  

2020

      41,837        12.46        15.42        533,620        0.02        0.75        1.35        13.63       14.31  

2019

      42,519        10.90        13.57        473,115        2.15        0.75        1.35        24.50       25.29  

 

59

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets ($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

Guggenheim VIF StylePlus Large Growth

 

                       

2023

      10,640        17.93        21.54        191,214        0.02        0.75        1.35        33.96       34.71  

2022

      17,230        13.31        16.08        229,480        0.00        0.75        1.35        (33.61 )      (33.22 ) 

2021

      19,246        19.93        24.22        385,304        0.01        0.75        1.35        22.32       23.10  

2020

      16,027        16.19        19.80        261,453        0.01        0.75        1.35        32.00       32.70  

2019

      20,983        12.20        15.00        256,693        2.06        0.75        1.35        28.21       29.10  

Guggenheim VIF StylePlus Mid Growth

 

                       

2023

      147,591        18.05        19.08        2,665,245        0.01        0.75        1.35        20.99       21.71  

2022

      154,319        14.83        15.77        2,288,731        0.00        0.75        1.35        (30.83 )      (30.41 ) 

2021

      145,435        21.31        22.80        3,100,760        0.01        0.75        1.35        8.83       9.51  

2020

      143,790        19.46        20.95        2,800,475        0.01        0.75        1.35        26.51       27.27  

2019

      137,549        15.29        16.56        2,105,480        0.86        0.75        1.35        26.99       27.84  

Guggenheim VIF StylePlus Small Growth

 

                       

2023

      92,653        11.44        19.60        1,059,957        0.01        0.75        1.35        15.84       16.62  

2022

      95,014        9.81        16.92        932,472        0.00        0.75        1.35        (29.71 )      (29.32 ) 

2021

      92,991        13.88        13.88        1,290,852        0.00        0.75        0.75        2.66       2.66  

2020

      95,439        13.52        23.60        1,290,992        0.01        0.75        1.35        26.20       26.95  

2019

      88,383        10.65        18.70        942,344        0.71        0.75        1.35        20.33       21.02  

Guggenheim VIF Total Return Bond

                          

2023

      163,483        7.85        9.70        1,589,687        0.04        0.75        1.35        2.35       2.97  

2022

      165,345        7.67        9.42        1,559,687        0.03        0.75        1.35        (19.69 )      (19.21 ) 

2021

      174,830        9.55        11.66        2,041,211        0.02        0.75        1.35        (4.69 )      (4.11 ) 

2020

      174,199        10.02        12.16        2,113,959        0.02        0.75        1.35        9.39       9.95  

2019

      207,073        9.16        11.06        2,289,766        2.84        0.75        1.35        —        0.64  

Guggenheim VIF World Equity Income

                          

2023

      48,983        12.84        14.35        629,419        0.03        0.75        1.35        7.49       8.17  

2022

      50,167        11.87        13.35        596,001        0.02        0.75        1.35        (12.97 )      (12.46 ) 

2021

      55,015        13.56        15.34        749,106        0.01        0.75        1.35        16.57       17.30  

2020

      64,230        11.56        13.16        745,184        0.02        0.75        1.35        2.09       2.66  

2019

      80,298        11.26        12.89        904,395        2.80        0.75        1.35        16.23       16.93  

 

60

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets ($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

Invesco V.I. American Value

                          

2023

      13,819        10.74        10.74        148,399        0.00        0.75        0.75        11.07       11.07  

2022

      13,497        9.67        9.67        130,507        0.01        0.75        0.75        (6.48 )      (6.48 ) 

2021

      705        10.29        10.34        7,288        0.05        0.75        1.35        —        —   

Invesco V.I. Comstock

                          

2023

      16,388        16.32        19.49        317,275        0.01        0.75        1.35        7.30       7.92  

2022

      12,906        15.21        18.06        232,745        0.01        0.75        1.35        (3.43 )      (2.85 ) 

2021

      14,931        15.75        18.59        277,225        0.02        0.75        1.35        27.43       28.21  

2020

      17,603        12.36        14.50        255,085        0.02        0.75        1.35        (5.36 )      (4.79 ) 

2019

      18,361        13.06        15.23        279,403        1.71        0.75        1.35        19.60       20.40  

Invesco V.I. Core Plus Bond

                          

2023

      22,279        9.44        9.44        210,344        0.02        0.75        0.75        1.94       1.94  

2022

      23,145        9.26        9.26        214,371        0.01        0.75        0.75        (7.40 )      (7.40 ) 

Invesco V.I. Discovery Mid Cap Growth

                          

2023

      20,682        16.91        16.91        349,688        —         0.75        0.75        8.68       8.68  

2022

      20,160        15.56        15.56        313,552        —         0.75        0.75        (33.65 )      (33.65 ) 

2021

      19,484        23.45        23.45        456,732        —         0.75        0.75        14.45       14.45  

2020

      19,046        16.59        20.49        390,158        —         0.75        1.35        34.01       34.80  

2019

      21,555        12.38        15.20        328,690        —         0.75        1.35        28.29       29.03  

Invesco V.I. Equity and Income

                          

2023

      44,256        13.94        16.60        733,868        0.02        0.75        1.35        5.53       6.21  

2022

      48,442        15.63        15.63        757,573        0.01        0.75        0.75        (11.09 )      (11.09 ) 

2021

      62,736        14.95        17.58        1,103,548        0.02        0.75        1.35        13.34       14.01  

2020

      62,922        13.19        15.42        970,057        0.02        0.75        1.35        4.93       5.54  

2019

      65,625        12.57        14.61        958,945        2.47        0.75        1.35        14.90       15.59  

Invesco V.I. EVQ International Equity Fund

 

                       

2023

      20,951        14.91        16.80        346,134        —         0.75        1.35        12.87       13.51  

2022

      21,387        13.21        14.80        311,597        0.01        0.75        1.35        (21.97 )      (21.49 ) 

2021

      25,314        16.93        18.85        471,218        0.01        0.75        1.35        1.07       1.73  

2020

      26,974        16.75        18.53        494,373        0.02        0.75        1.35        8.91       9.58  

2019

      36,533        15.38        16.91        613,360        1.31        0.75        1.35        22.75       23.52  

 

61

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets ($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

Invesco V.I. Global

                          

2023

      41,401        15.25        15.25        632,148        —         0.75        0.75        29.57       29.57  

2022

      41,351        11.77        11.77        487,475        —         0.75        0.75        (34.43 )      (34.43 ) 

2021

      41,242        17.95        17.95        741,389        —         0.75        0.75        10.94       10.94  

2020

      47,986        16.18        16.18        777,416        0.00        0.75        0.75        22.58       22.58  

2019

      55,200        13.20        13.20        729,146        0.66        0.75        0.75        26.68       26.68  

Invesco V.I. Global Real Estate

                          

2023

      26,652        16.02        18.16        484,103        0.01        0.75        1.35        4.36       5.03  

2022

      26,157        15.35        17.29        452,308        0.03        0.75        1.35        (28.10 )      (27.69 ) 

2021

      27,755        21.35        23.91        663,517        0.03        0.75        1.35        20.35       21.06  

2020

      28,991        17.74        19.75        572,423        0.05        0.75        1.35        (16.04 )      (15.53 ) 

2019

      32,131        21.13        23.38        751,303        4.75        0.75        1.35        17.72       18.44  

Invesco V.I. Government Money Market

                          

2023

      75,825        7.85        8.22        622,298        0.05        0.75        1.35        0.13       0.74  

2022

      88,397        7.84        8.16        719,363        0.01        0.75        1.35        (3.09 )      (2.51 ) 

2021

      110,026        8.09        8.37        920,685        0.00        0.75        1.35        (4.26 )      (3.68 ) 

2020

      117,657        8.45        8.69        1,022,249        0.00        0.75        1.35        (3.98 )      (3.44 ) 

2019

      66,649        8.80        9.00        599,927        1.70        0.75        1.35        (2.76 )      (2.17 ) 

Invesco V.I. Government Securities

                          

2023

      87,328        7.14        7.14        625,048        0.02        0.75        0.75        0.71       0.71  

2022

      84,106        7.09        7.09        598,312        0.02        0.75        0.75        (13.96 )      (13.96 ) 

2021

      96,042        8.24        8.24        792,898        0.02        0.75        0.75        (6.04 )      (6.04 ) 

2020

      96,578        8.04        8.77        848,396        0.02        0.75        1.35        1.39       2.10  

2019

      108,750        7.93        8.59        935,672        2.29        0.75        1.35        1.28       1.90  

Invesco V.I. Health Care

                          

2023

      8,078        21.87        24.79        196,844        —         0.75        1.35        (1.35 )      (0.76 ) 

2022

      9,230        22.17        24.98        225,603        —         0.75        1.35        (17.00 )      (16.48 ) 

2021

      8,398        26.71        29.91        247,702        0.00        0.75        1.35        7.48       8.13  

2020

      13,429        24.85        27.66        367,420        0.00        0.75        1.35        9.57       10.24  

2019

      14,960        22.68        25.09        371,437        0.05        0.75        1.35        26.85       27.62  

 

62

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets ($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

Invesco V.I. Main Street Mid Cap Fund®

                          

2023

      5,335        19.75        22.39        119,149        0.00        0.75        1.35        9.30       9.97  

2022

      4,064        18.07        20.36        82,731        0.00        0.75        1.35        (18.09 )      (17.60 ) 

2021

      4,523        22.06        24.71        111,451        0.00        0.75        1.35        17.59       18.34  

2020

      4,490        18.76        20.88        93,728        0.00        0.75        1.35        4.28       4.92  

2019

      6,088        17.99        19.90        121,148        0.23        0.75        1.35        19.69       20.46  

Invesco V.I. Main Street Small Cap Fund®

 

                       

2023

      5,642        32.40        36.73        205,598        0.01        0.75        1.35        12.81       13.50  

2022

      5,281        28.72        32.36        169,462        0.00        0.75        1.35        (19.62 )      (19.12 ) 

2021

      5,330        35.73        40.01        211,510        0.00        0.75        1.35        17.07       17.78  

2020

      7,158        30.52        33.97        241,724        0.00        0.75        1.35        14.52       15.19  

2019

      8,220        26.65        29.49        240,807        —         0.75        1.35        20.75       21.51  

Janus Henderson VIT Enterprise

                          

2023

      74,144        27.77        27.77        2,057,994        0.00        0.75        0.75        13.49       13.49  

2022

      79,346        24.47        24.47        1,941,374        0.00        0.75        0.75        (19.24 )      (19.24 ) 

2021

      80,846        27.85        30.30        2,448,804        0.00        0.75        1.35        11.58       12.26  

2020

      81,422        24.96        26.99        2,196,653        —         0.75        1.35        14.08       14.75  

2019

      80,995        21.88        23.52        1,903,821        0.06        0.75        1.35        29.39       30.23  

Janus Henderson VIT Research

                          

2023

      42,626        24.23        24.23        1,033,863        0.00        0.75        0.75        37.51       37.51  

2022

      43,083        17.62        17.62        759,514        —         0.75        0.75        (32.59 )      (32.59 ) 

2021

      40,328        24.52        26.14        1,055,169        0.00        0.75        1.35        14.96       15.61  

2020

      43,759        21.33        22.61        989,918        0.00        0.75        1.35        26.89       27.67  

2019

      42,400        16.81        17.71        751,265        0.31        0.75        1.35        29.51       30.22  

Lord Abbett Series Bond-Debenture VC

                          

2023

      17,901        9.50        9.50        170,338        0.05        0.75        0.75        2.59       2.59  

2022

      21,564        9.26        9.26        199,893        0.04        0.75        0.75        (16.05 )      (16.05 ) 

2021

      25,648        11.03        11.03        283,032        0.03        0.75        0.75        (0.54 )      (0.54 ) 

2020

      19,782        11.09        11.09        219,477        0.03        0.75        0.75        3.36       3.36  

2019

      29,960        10.73        10.73        321,515        3.78        0.75        0.75        9.27       9.27  

 

63

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets ($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

Lord Abbett Series Developing Growth VC

 

                       

2023

      14,769        14.14        14.14        209,011        —         0.75        0.75        4.20       4.20  

2022

      13,770        13.57        13.57        187,037        —         0.75        0.75        (38.32 )      (38.32 ) 

2021

      16,026        22.00        22.00        352,903        —         0.75        0.75        (6.30 )      (6.30 ) 

2020

      11,452        23.48        23.48        269,271        —         0.75        0.75        66.17       66.17  

2019

      7,684        14.13        14.13        108,755        —         0.75        0.75        26.95       26.95  

LVIP JPMorgan Core Bond Fund (a)

                          

2023

      14,190        7.94        7.94        112,262        0.03        0.75        0.75        1.79       1.79  

2022

      13,641        7.80        7.80        106,051        0.02        0.75        0.75        (15.95 )      (15.95 ) 

2021

      31,785        9.28        9.28        294,648        0.01        0.75        0.75        (5.31 )      (5.31 ) 

2020

      16,925        9.80        9.80        165,502        0.02        0.75        0.75        3.70       3.70  

2019

      18,244        9.45        9.45        172,016        2.41        0.75        0.75        3.85       3.85  

MFS® VIT II Research International

                          

2023

      24,526        7.77        10.06        246,824        0.01        0.75        1.35        8.07       8.76  

2022

      25,874        9.25        9.25        239,594        0.02        0.75        0.75        (20.87 )      (20.87 ) 

2021

      25,745        9.14        11.69        301,069        0.01        0.75        1.35        6.53       7.15  

2020

      33,917        8.58        10.91        369,446        0.02        0.75        1.35        7.92       8.56  

2019

      34,247        7.95        10.05        335,823        1.26        0.75        1.35        22.31       23.01  

MFS® VIT Total Return

                          

2023

      54,139        14.40        14.40        781,139        0.02        0.75        0.75        6.12       6.12  

2022

      60,419        11.53        13.57        820,972        0.01        0.75        1.35        (13.70 )      (13.12 ) 

2021

      64,220        13.36        15.62        1,003,892        0.02        0.75        1.35        8.97       9.69  

2020

      74,612        12.26        14.24        1,064,096        0.02        0.75        1.35        4.88       5.40  

2019

      98,690        11.69        13.51        1,334,002        2.26        0.75        1.35        14.95       15.77  

MFS® VIT Utilities

                          

2023

      28,848        13.53        20.48        574,166        0.03        0.75        1.35        (6.50 )      (5.93 ) 

2022

      31,490        14.47        21.77        667,987        0.02        0.75        1.35        (3.79 )      (3.20 ) 

2021

      33,914        15.04        22.49        743,597        0.01        0.75        1.35        8.91       9.60  

2020

      32,833        13.81        20.52        656,606        0.02        0.75        1.35        1.17       1.74  

2019

      30,738        13.65        20.17        597,248        3.77        0.75        1.35        19.42       20.20  

 

(a)

Name change. See Note 1.

 

64

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets
($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

Morgan Stanley VIF Emerging Markets Equity

 

                       

2023

      37,305        5.88        7.05        262,790        0.02        0.75        1.35        7.30       7.80  

2022

      45,741        5.48        6.54        298,805        0.00        0.75        1.35        (28.37 )      (27.81 ) 

2021

      45,629        7.65        9.06        413,319        0.01        0.75        1.35        (1.42 )      (0.88 ) 

2020

      45,231        7.76        9.14        411,975        0.01        0.75        1.35        9.45       10.12  

2019

      57,672        7.09        8.30        478,147        1.13        0.75        1.35        14.54       15.12  

Morningstar Aggressive Growth ETF Asset Allocation Portfolio

 

                 

2023

      16,535        13.44        13.44        222,224        0.02        0.75        0.75        12.56       12.56  

2022

      16,052        11.94        11.94        191,621        0.01        0.75        0.75        (16.39 )      (16.39 ) 

2021

      15,609        14.28        14.28        222,752        0.01        0.75        0.75        13.97       13.97  

2020

      16,637        12.53        12.53        208,300        0.02        0.75        0.75        5.92       5.92  

2019

      16,015        11.83        11.83        189,360        1.60        0.75        0.75        17.71       17.71  

Morningstar Balanced ETF Asset Allocation Portfolio

 

                    

2023

      29,117        11.06        11.06        321,994        0.02        0.75        0.75        8.64       8.64  

2022

      33,435        10.18        10.18        340,270        0.02        0.75        0.75        (16.08 )      (16.08 ) 

2021

      32,184        12.13        12.13        390,328        0.01        0.75        0.75        6.68       6.68  

2020

      35,142        11.37        11.37        399,397        0.02        0.75        0.75        5.08       5.08  

2019

      34,669        10.82        10.82        374,943        2.35        0.75        0.75        12.01       12.01  

Morningstar Conservative ETF Asset Allocation Portfolio

 

                    

2023

      2,950        8.52        8.52        25,068        0.01        0.75        0.75        3.90       3.90  

2022

      13,487        8.20        8.20        110,612        0.01        0.75        0.75        (15.11 )      (15.11 ) 

2021

      13,415        9.66        9.66        129,519        0.01        0.75        0.75        (1.53 )      (1.53 ) 

2020

      17,947        9.81        9.81        175,925        0.03        0.75        0.75        2.62       2.62  

2019

      4,287        9.56        9.56        40,984        1.98        0.75        0.75        5.52       5.52  

Morningstar Growth ETF Asset Allocation Portfolio

 

                    

2023

      17,298        12.44        12.44        215,142        0.02        0.75        0.75        11.07       11.07  

2022

      18,757        11.20        11.20        210,096        0.02        0.75        0.75        (16.42 )      (16.42 ) 

2021

      17,447        13.40        13.40        233,855        0.01        0.75        0.75        10.65       10.65  

2020

      27,672        12.11        12.11        335,227        0.02        0.75        0.75        5.95       5.95  

2019

      26,306        11.43        11.43        300,817        1.47        0.75        0.75        15.34       15.34  

 

65

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets
($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

Morningstar Income and Growth ETF Asset Allocation Portfolio

 

                 

2023

      12,003        9.78        9.78        117,266        0.02        0.75        0.75        6.54       6.54  

2022

      11,708        9.18        9.18        107,375        0.01        0.75        0.75        (15.70 )      (15.70 ) 

2021

      16,633        10.89        10.89        181,133        0.01        0.75        0.75        2.54       2.54  

2020

      20,864        10.62        10.62        221,599        0.02        0.75        0.75        4.42       4.42  

2019

      20,037        10.17        10.17        203,791        2.13        0.75        0.75        8.77       8.77  

Neuberger Berman AMT Sustainable Equity

                          

2023

      17,185        30.24        33.66        580,616        0.00        0.75        1.35        21.20       21.91  

2022

      20,069        24.95        27.61        555,808        0.00        0.75        1.35        (22.10 )      (21.63 ) 

2021

      23,989        32.03        35.23        846,913        0.00        0.75        1.35        17.89       18.62  

2020

      28,397        27.17        29.70        844,912        0.00        0.75        1.35        14.16       14.89  

2019

      30,598        23.80        25.85        792,517        0.29        0.75        1.35        20.26       20.96  

PIMCO VIT All Asset

                          

2023

      7,605        12.20        13.83        101,054        0.03        0.75        1.35        3.48       4.14  

2022

      7,563        11.79        13.28        96,643        0.07        0.75        1.35        (15.60 )      (15.09 ) 

2021

      7,622        13.97        15.64        114,415        0.11        0.75        1.35        11.31       11.95  

2020

      9,453        12.55        13.97        127,932        0.05        0.75        1.35        3.38       4.02  

2019

      10,732        12.14        13.43        139,840        2.88        0.75        1.35        7.15       7.78  

PIMCO VIT CommodityRealReturn Strategy

 

                       

2023

      36,557        4.37        5.03        181,873        0.16        0.75        1.35        (11.90 )      (11.29 ) 

2022

      37,504        4.96        5.67        209,640        0.23        0.75        1.35        3.98       4.61  

2021

      41,071        4.77        5.42        219,245        0.04        0.75        1.35        27.88       28.44  

2020

      41,436        3.73        4.22        171,816        0.07        0.75        1.35        (3.12 )      (2.54 ) 

2019

      42,263        3.85        4.33        180,578        4.75        0.75        1.35        6.65       7.44  

PIMCO VIT Emerging Markets Bond

                          

2023

      2,803        9.77        10.34        28,995        0.06        0.75        1.35        6.20       6.93  

2022

      2,790        9.20        9.67        26,990        0.04        0.75        1.35        (19.37 )      (18.94 ) 

2021

      4,698        11.41        11.93        55,975        0.05        0.75        1.35        (6.78 )      (6.21 ) 

2020

      3,539        12.24        12.72        44,961        0.05        0.75        1.35        2.00       2.66  

2019

      3,771        12.00        12.39        46,674        5.32        0.75        1.35        9.79       10.43  

 

66

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets ($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

PIMCO VIT International Bond Portfolio (U.S. Dollar-Hedged)

 

                 

2023

      29,949        9.85        10.73        319,725        0.02        0.75        1.35        4.34       4.99  

2022

      26,836        9.44        10.22        273,764        0.01        0.75        1.35        (14.03 )      (13.46 ) 

2021

      33,214        10.98        11.81        391,686        0.02        0.75        1.35        (6.07 )      (5.52 ) 

2020

      33,588        11.69        12.50        419,106        0.06        0.75        1.35        1.04       1.63  

2019

      48,392        11.57        12.30        594,593        1.86        0.75        1.35        2.39       3.10  

PIMCO VIT Low Duration

                          

2023

      37,977        6.54        7.41        279,960        0.04        0.75        1.35        0.46       1.09  

2022

      53,567        6.51        7.33        391,797        0.02        0.75        1.35        (9.71 )      (9.28 ) 

2021

      58,945        7.21        8.08        475,070        0.01        0.75        1.35        (5.13 )      (4.49 ) 

2020

      68,641        7.60        8.46        580,042        0.01        0.75        1.35        (1.43 )      (0.82 ) 

2019

      70,418        7.71        8.53        600,015        2.78        0.75        1.35        (0.39 )      0.12  

PIMCO VIT Real Return

                          

2023

      100,372        8.79        9.96        1,000,165        0.03        0.75        1.35        (0.79 )      (0.20 ) 

2022

      99,577        8.86        9.98        993,139        0.07        0.75        1.35        (15.62 )      (15.14 ) 

2021

      111,507        10.50        11.76        1,310,338        0.05        0.75        1.35        1.06       1.73  

2020

      115,435        10.39        11.56        1,334,518        0.01        0.75        1.35        7.00       7.53  

2019

      130,852        9.71        10.75        1,405,883        1.62        0.75        1.35        3.74       4.47  

PIMCO VIT Total Return

                          

2023

      50,653        8.01        8.01        405,561        0.04        0.75        0.75        1.91       1.91  

2022

      59,603        7.86        7.86        468,213        0.02        0.75        0.75        (17.52 )      (17.52 ) 

2021

      66,010        9.53        9.53        628,822        0.02        0.75        0.75        (4.99 )      (4.99 ) 

2020

      54,792        10.03        10.03        549,409        0.02        0.75        0.75        4.59       4.59  

2019

      44,606        9.59        9.59        427,841        2.81        0.75        0.75        4.24       4.24  

Putnam VT Small Cap Value

                          

2023

      1,403        14.85        14.85        20,835        0.00        0.75        0.75        19.28       19.28  

2022

      1,359        12.45        12.45        16,929        0.00        0.75        0.75        (16.22 )      (16.22 ) 

2021

      1,305        14.86        14.86        19,400        0.01        0.75        0.75        34.85       34.85  

2020

      911        11.02        11.02        10,045        0.01        0.75        0.75        0.09       0.09  

2019

      1,774        11.01        11.01        19,534        0.66        0.75        0.75        19.67       19.67  

 

67

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

Subaccount

    Units      Unit
Values
Lowest
($) (4)		      Unit
Values
Highest
($) (4)		      Net
Assets ($)		      Investment
Income
Ratios
(%) (1)		      Expense
Ratios
Lowest
(%) (2)		      Expense
Ratios
Highest
(%) (2)		      Total
Returns
Lowest
(%) (3)(4)		     Total
Returns
Highest
(%) (3)(4)		  

Royce Micro-Cap

                          

2023

      12,576        10.99        13.49        169,206        —         0.75        1.35        13.77       14.42  

2022

      12,437        11.79        11.79        146,246        —         0.75        0.75        (25.24 )      (25.24 ) 

2021

      14,090        13.01        15.77        221,819        —         0.75        1.35        24.50       25.16  

2020

      15,360        10.45        12.60        193,194        —         0.75        1.35        18.48       19.21  

2019

      15,614        8.82        10.57        164,729        —         0.75        1.35        14.40       15.14  

T. Rowe Price Health Sciences

                          

2023

      77,322        19.15        19.15        1,481,854        —         0.75        0.75        (1.14 )      (1.14 ) 

2022

      79,807        19.37        19.37        1,546,409        —         0.75        0.75        (15.86 )      (15.86 ) 

2021

      80,329        23.02        23.02        1,850,308        —         0.75        0.75        8.64       8.64  

2020

      75,438        21.19        21.19        1,598,905        —         0.75        0.75        24.50       24.50  

2019

      72,441        17.02        17.02        1,233,406        —         0.75        0.75        23.96       23.96  

Templeton Developing Markets VIP Fund

 

                       

2023

      18,688        8.99        8.99        168,117        0.02        0.75        0.75        8.44       8.44  

2022

      18,634        8.29        8.29        154,519        0.03        0.75        0.75        (24.84 )      (24.84 ) 

2021

      16,710        11.03        11.03        184,388        0.01        0.75        0.75        (9.22 )      (9.22 ) 

2020

      17,647        12.15        12.15        214,489        0.06        0.75        0.75        12.81       12.81  

2019

      19,594        10.77        10.77        210,974        1.00        0.75        0.75        22.11       22.11  

Templeton Global Bond VIP Fund

                          

2023

      294,954        6.45        6.45        1,901,403        —         0.75        0.75        (0.92 )      (0.92 ) 

2022

      280,114        6.51        6.51        1,822,345        —         0.75        0.75        (8.44 )      (8.44 ) 

2021

      313,166        7.11        7.11        2,225,419        —         0.75        0.75        (8.49 )      (8.49 ) 

2020

      249,500        7.77        7.77        1,937,727        0.06        0.75        0.75        (8.70 )      (8.70 ) 

2019

      146,973        8.51        8.51        1,251,558        7.02        0.75        0.75        (1.73 )      (1.73 ) 

Western Asset Variable Global High Yield Bond

 

                       

2023

      2,250        10.12        10.38        23,075        0.05        0.75        1.35        5.31       5.92  

2022

      2,195        9.61        9.80        21,315        0.06        0.75        1.35        (17.51 )      (17.02 ) 

2021

      2,421        11.65        11.81        28,400        0.04        0.75        1.35        (3.32 )      (2.64 ) 

2020

      3,102        12.05        12.13        37,516        0.03        0.75        1.35        2.55       3.15  

2019

      4,361        11.75        11.76        51,259        4.64        0.75        1.35        9.20       9.80  

 

68

Table of Contents

Variable Annuity Account B

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

 

(1)

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. Average net assets is a simple average of net assets and will not reflect offsetting changes in net assets occurring within a year. These ratios exclude those expenses, such as mortality and expense 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 subaccount invests.

(2)

These ratios represent the annualized contract expenses of the Account, consisting primarily of administrative and mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to the unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund are excluded. The additional fees for the mortality and expense risk charges applied to policies whose contract values are less than $100,000 are excluded from these ratios because they result in reductions of contract owner units, rather than direct reductions to the unit values. See Note 2.

(3)

These amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. The total return is calculated for the period indicated or from the inception date through the end of the reporting period.

(4)

Unit value information is calculated on a daily basis regardless of whether or not the subaccount has contractholders.

5. Subsequent Events

The Account has performed an evaluation of subsequent events through the date the financial statements were issued and has determined that no items require recognition or disclosure.

 

69

Table of Contents
PART C
OTHER INFORMATION
Item 27. Exhibits
Exhibit
Number
Description
Location
(a)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-118136 (filed August 12, 2004)
(b)
Form of Custody Agreements
Not Applicable
(c)(1)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 28, 2017)
(c)(2)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-118136 (filed August 12, 2004)
(c)(2)(i)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 13, 2007)
(c)(3)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-120600 (filed April 29, 2022)
(c)(4)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-89236 (filed April 28, 2006)
(d)(1)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 811-21613 (filed November 18, 2004)
(d)(2)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 811-21613 (filed November 18, 2004)
(d)(3)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-118136 (filed August 12, 2004)
(d)(4)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-118136 (filed August 12, 2004)
(d)(5)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-118136 (filed August 12, 2004)
(d)(6)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-118136 (filed August 12, 2004)
(d)(7)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-118136 (filed August 12, 2004)
(d)(8)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-89236 (filed May 28, 2002)
(d)(9)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-89236 (filed July 19, 2002)
(d)(10)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-89236 (filed May 28, 2002)
(d)(11)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-89236 (filed May 28, 2002)
(d)(12)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-89236 (filed February 28, 2003)
(d)(13)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-89236 (filed May 28, 2002)
(d)(14)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 033-83240 (filed April 30, 1998)
(d)(15)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-118136 (filed August 12, 2004)
(e)(1)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-120600 (filed April 30, 2015)
(e)(2)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-120600 (filed April 30, 2009)
1
Exhibit
Number
Description
Location
(e)(3)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-120600 (filed April 30, 2009)
f(1)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2016)
f(2)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 30, 2015)
(g)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-120600 (filed December 21, 2004)
(h)(1)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed February 21, 2013)
(h)(2)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2022)
(h)(3)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 30, 2018)
(h)(4)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2022)
(h)(5)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 30, 2014)
(h)(6)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2022)
(h)(7)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed February 21, 2013)
(h)(8)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2022)
(h)(9)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2022)
(h)(10)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2022)
(h)(11)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2022)
(h)(12)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2022)
(h)(13)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 28, 2017)
(h)(14)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 30, 2024)
(h)(15)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2022)
(h)(16)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2022)
(h)(17)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2016)
(h)(18)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2022)
(h)(19)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2020)
(h)(20)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 30, 2024)
(h)(21)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-120600 (filed April 29, 2022)
(h)(22)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2020)
2
Exhibit
Number
Description
Location
(h)(23)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 30, 2014)
(h)(24)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2022)
(h)(25)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 033-85592 (filed April 27, 2007)
(h)(26)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed February 21, 2013)
(h)(27)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 033-85592 (filed April 27, 2007)
(h)(28)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 30, 2014)
(h)(29)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 033-85592 (filed April 27, 2007)
(h)(30)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-89236 (filed April 27, 2007)
(h)(31)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 29, 2022)
(h)(32)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed February 21, 2013)
(h)(33)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-120600 (filed April 27, 2007)
(h)(34)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-120600 (filed April 30, 2009)
(h)(35)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 033-85592 (filed April 27, 2007)
(h)(36)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 033-85592 (filed April 27, 2007)
(h)(37)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 033-85592 (filed April 27, 2007)
(h)(38)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed February 21, 2013)
(h)(39)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 033-85592 (filed April 27, 2007)
(h)(40)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 033-85592 (filed April 27, 2007)
(h)(41)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-41180 (filed April 27, 2007)
(h)(42)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-41180 (filed April 27, 2007)
(i)
Administrative Contracts
Not applicable
(j)
Other Material Contracts
Not Applicable
(k)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-120600 (filed April 30, 2015)
(l)
Filed herewith
(m)
Omitted Financial Statements
Not Applicable
(n)
Initial Capital Agreements
Not Applicable
(o)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No.. 333-120600 (filed April 30, 2021)
3
Exhibit
Number
Description
Location
(p)
Incorporated herein by reference to the Exhibits filed with Registration
Statement No. 333-142084 (filed April 28, 2023)
Item 28.
Directors and Officers of the Depositor
The directors and principal officers of First Security Benefit Life Insurance and Annuity Company of New York are set forth below.
Name and Principal
Business Address
Positions and Offices with Depositor
Douglas G. Wolff*
Chief Executive Officer and Director
Caleb I. Brainerd*
Senior Vice President, Chief Financial Officer, and Director
John F. Guyot*
Senior Vice President, General Counsel, Secretary, and Director
Roger S. Offermann*
Senior Vice President, Chief Actuary, Chief Product Officer, Chief Risk Officer, and Director
Joseph W. Wittrock*
Senior Vice President, Chief Investment Officer, and Director
Michael P. Kiley*
Director
Stephen A. Crane
480 Park Avenue
New York, NY 10022-1613
Director
Wayne S. Diviney
13716 Balmoral Greens
Avenue
Clifton, VA 20124-2800
Director
Stephen R. Herbert
1100 Summer Street, 4th
Floor
Stamford, CT 06905
Director
Katherine P. White
1035 5th Avenue, Apt. 14D
New York, NY 10028-0135
Director
David G. Byrnes*
Senior Vice President and Chief Distribution Officer
Albert J. Dal Porto*
Senior Vice President and Chief Strategy Officer
Sean O’Donoghue*
Senior Vice President and Chief Technology Officer
Justin F. Carroll*
Vice President and Associate General Counsel
Joseph J. Elmy*
Vice President and Tax Director
Rui Guo*
Vice President and Product Actuary
Carmen R. Hill*
Vice President, Chief Compliance Officer and Chief Privacy Officer
Duc X. Ho
Vice President, Appointed Actuary
James J. Kiley*
Vice President, Distribution
Susan J. Lacey*
Vice President and Controller
Jeanne R. Slusher*
Vice President and Director of Audit
Christopher D. Swickard*
Vice President, Deputy General Counsel, and Assistant Secretary
John P. Wohletz*
Vice President, GAAP Financial Reporting
Lisa M. Young
Vice President and Treasurer
Peggy S. Avey
121 State Street
Albany, New York 122072
Second Vice President, Chief Administrative Officer, and Assistant Secretary
*Located at One Security Benefit Place, Topeka, Kansas 66636-0001.
Item 29.
Persons Controlled by or Under Common Control with the Depositor or Registrant
4
The Depositor, First Security Benefit Life Insurance and Annuity Company of New York (“FSBL” or “the Company”), is a wholly-owned subsidiary of SBL Holdings, LLC. The Registrant is a segregated asset account of FSBL. The list of companies controlled by or under common control with SBL Holdings, LLC is set forth below.
Name
Jurisdiction
Percent of Voting Securities Owned
Todd L. Boehly, Individual
 
 
 
100 N. Crescent Holdings LLC
DE
100%
by Mayfair Portfolio Trust, LLC
100 N. Crescent LLC
DE
100%
by 100 N. Cresent Holdings LLC
125 West 57th Street Holdings LLC
DE
85.0%
by CI W57th Street Holdings LLC
125 West 57th Street Mezz 2, LLC
DE
100%
by 125 West 57th Street Holdings LLC
125 West 57th Street Mezz, LLC
DE
100%
by 125 West 57th Street Mezz 2, LLC
125 West 57th Street Property Owner LLC
DE
100%
by 125 West 57th Street Holdings LLC
125 West 57th Street Property Owner LLC
DE
100%
by 125 West 57th Street Mezz, LLC
12D The Film Limited
GBR
100%
by Fulwell 73 UK Limited
13 FEG Alamo Production, LLC
DE
100%
by 13 FEG Asset Production, LLC
13 FEG Asset Production, LLC
DE
100%
by 13FEG Ops, LLC
13 FEG Columbus Holdings, LLC
DE
100%
by 13 FEG Haunted Holdings, LLC
13 FEG Haunted Holdings, LLC
DE
100%
by 13FEG Ops, LLC
13 FEG Haunted Prison, LLC
IL
100%
by 13 FEG Haunted Holdings, LLC
13 FEG New Orleans, LLC
DE
100%
by 13 FEG Haunted Holdings, LLC
13 FEG Touring Events, LLC
DE
100%
by 13FEG Ops, LLC
13FEG Houston Holdings, LLC
TN
100%
by 13 FEG Haunted Holdings, LLC
13FEG Immersive Theater, LLC
CA
100%
by 13 FEG Haunted Holdings, LLC
13FEG IP, LLC
DE
100%
by Thirteenth Floor Entertainment Group, LLC
13FEG Jacksonville Holdings, LLC
DE
100%
by 13 FEG Haunted Holdings, LLC
13FEG LA Holdings, LLC
DE
100%
by 13 FEG Haunted Holdings, LLC
13FEG Ops, LLC
DE
100%
by Thirteenth Floor Entertainment Group, LLC
13th Floor Denver Holdings, LLC
CO
100%
by 13 FEG Haunted Holdings, LLC
1861 Capital, LLC
KS
100%
by Sherwood Park, Inc.
234 Productions, LLC
DE
100%
by Fulwell 73 Productions US, Inc.
3030 Chain Bridge Road, LLC
DE
90.0%
by SBT Investors, LLC
333 Fish Tacos NY 1, LLC
NY
100%
by Fish Tacos NY 1, LLC
37-41 Mortimer GP LTD
GBR
100%
by 37-41 Mortimer Street LLP
37-41 Mortimer LP
GBR
99.99%
by 37-41 Mortimer Unit Trust
37-41 Mortimer Nominee 1 Ltd
GBR
100%
by 37-41 Mortimer GP LTD
37-41 Mortimer Nominee 2 Ltd
GBR
100%
by 37-41 Mortimer GP LTD
37-41 Mortimer Opco Ltc
GBR
100%
by 37-41 Mortimer Street LLP
37-41 Mortimer Street LLP
GBR
0%
Board rights held by CH Capital A Holdings LLc
37-41 Mortimer Unit Trust
JEY
99.99%
by 37-41 Mortimer Street LLP
4AIR, LLC
DE
28.55%
by Eldridge 4AIR Holdings LLC
688 Bronx Commissary, LLC
NY
100%
by MPQ 688 Bronx HoldCo, LLC
700 Edgewater Development Mezz, LLC
DE
100%
by CHE Edgewater LLC
700 Edgewater Development Parent, LLC
DE
45.0%
by CHE Edgewater LLC
700 Edgewater Development, LLC
DE
100%
by CHE Edgewater LLC
720 NE Street Holdco LLC
DE
100%
by CHE NE Street LLC
720 NE Street LLC
DE
50.0%
by CHE NE Street LLC
720 NE Street PropCo LLC
DE
100%
by CHE NE Street LLC
9350 Civic Center Drive, LLC
DE
100%
by 9350 Civic Center JV, LLC
9350 Civic Center JV, LLC
DE
50.0%
by SBC Civic Center LLC
A Bus Could Run Limited
GBR
100%
by Fulwell 73 Limited
A Cigar is Just a Cigar Limited
GBR
100%
by A24 Films LLC
A Cigar is Just a Cigar LLC
DE
100%
by A24 Films LLC
A24 Analytics LLC
DE
100%
by A24 Films LLC
A24 Commerce St LLC
DE
100%
by A24 Films LLC
A24 Distribution, LLC
DE
100%
by A24 Films LLC
5
Name
Jurisdiction
Percent of Voting Securities Owned
A24 Films, LLC
DE
32.1%
by Valence A24, LLC
A24 International LLC
DE
100%
by A24 Films LLC
A24 Investments LLC
DE
100%
by A24 Films LLC
A24 Merch LLC
DE
100%
by A24 Films LLC
A24 Music LLC
DE
100%
by A24 Films LLC
A24 Productions 1 LLC
DE
100%
by A24 Films LLC
A24 Productions 2 LLC
DE
100%
by A24 Films LLC
A24 Productions 3 LLC
DE
100%
by A24 Films LLC
A24 Publishing LLC
DE
100%
by A24 Films LLC
A24 Services, LLC
DE
100%
by A24 Films LLC
A24 Studios Limited
GBR
100%
by A24 Films LLC
A24 Studios LLC
DE
100%
by A24 Films LLC
A24 Sunset LLC
DE
100%
by A24 Films LLC
A24 TV Inc.
DE
100%
by After The Fact LLC
A24 TV LLC
DE
100%
by A24 Films LLC
A24 Ventures LLC
DE
100%
by A24 Films LLC
ABM JG Greenwich, LLC
DE
100%
by Aurify Brands Management, LLC
ACZ Investments LP
DE
0%
Mgmt. by Eldridge CH GP LLC
ACZ Students LLC
DE
100%
by ACZ Investments LP
Adore Matchmaking LLC
DE
100%
by A24 Films LLC
Adore Rights LLC
DE
100%
by A24 Films LLC
Aero Solutions Srl
Italy
100%
by Sirio S.p.A.
After The Fact LLC
DE
100%
by A24 Films LLC
AIC The Film Limited
GBR
100%
by Fulwell 73 Limited
Air Eldridge LLC
DE
100%
by Eldridge Corporate Services, LLC
Aircraft Hangar Services LLC
DE
100%
by Air Eldridge LLC
AllBright Collective Limited
GBR
100%
by Cain PE LLC
AltAlpha Vintage, L.P.
DE
0%
Mgmt. by CAIS AltAlpha Vintage LLC
An Inconvenient Tooth LLC
DE
100%
by A24 Films LLC
AOG, LLC
OH
100%
by Fairgrave Omlie, LLC
Apocalypse Events LLC
CO
100%
by 13 FEG Touring Events, LLC
APQ 1131 Madison Avenue NY, LLC
DE
100%
by LPQ USA, LLC
APQ 1399 Madison NY, LLC
DE
100%
by LPQ USA, LLC
APQ 1592 First Avenue NY, LLC
DE
100%
by LPQ USA, LLC
APQ 17th Street DC, LLC
DE
100%
by LPQ USA, LLC
APQ 33 Bakery Annex NY, LLC
DE
100%
by LPQ USA, LLC
APQ 33 Street Bakery NY, LLC
DE
100%
by LPQ USA, LLC
APQ 85 Broad NY, LLC
DE
100%
by LPQ USA, LLC
APQ 8th and Walnut PA, LLC
DE
100%
by LPQ USA, LLC
APQ Americana CA, LLC
DE
100%
by LPQ USA, LLC
APQ Beverly Hills CA, LLC
DE
100%
by LPQ USA, LLC
APQ Blaine Mansion DC, LLC
DE
100%
by LPQ USA, LLC
APQ Bleecker NY, LLC
DE
100%
by LPQ USA, LLC
APQ Bryant Park Kiosk NY, LLC
DE
100%
by LPQ USA, LLC
APQ Bryant Park NY, LLC
DE
100%
by LPQ USA, LLC
APQ Capitol Hill DC, LLC
DE
100%
by LPQ USA, LLC
APQ Carnegie Hill NY, LLC
DE
100%
by LPQ USA, LLC
APQ Carroll Square DC, LLC
DE
100%
by LPQ USA, LLC
APQ Claremont CA, LLC
DE
100%
by LPQ USA, LLC
APQ Coconut Grove FL, LLC
DE
100%
by LPQ USA, LLC
APQ E65 NY, LLC
DE
100%
by LPQ USA, LLC
APQ Encino Bakery CA, LLC
DE
100%
by LPQ USA, LLC
APQ First Avenue NY, LLC
DE
100%
by LPQ USA, LLC
6
Name
Jurisdiction
Percent of Voting Securities Owned
APQ Florence Bakery Annex CA, LLC
DE
100%
by LPQ USA, LLC
APQ Garden City NY, LLC
DE
100%
by LPQ USA, LLC
APQ Grand Central West NY, LLC
DE
100%
by LPQ USA, LLC
APQ Greenwich CT, LLC
DE
100%
by LPQ USA, LLC
APQ Larchmont CA, LLC
DE
100%
by LPQ USA, LLC
APQ Lincoln Square NY, LLC
DE
100%
by LPQ USA, LLC
APQ Manhattan Beach CA, LLC
DE
100%
by LPQ USA, LLC
APQ Merrifield VA, LLC
DE
100%
by LPQ USA, LLC
APQ Mineral Springs NY, LLC
DE
100%
by LPQ USA, LLC
APQ New Canaan CT, LLC
DE
100%
by LPQ USA, LLC
APQ Rye NY, LLC
DE
100%
by LPQ USA, LLC
APQ Sailboat Pond NY, LLC
DE
100%
by LPQ USA, LLC
APQ South End Avenue NY, LLC
DE
100%
by LPQ USA, LLC
APQ South Gayley CA, LLC
DE
100%
by LPQ USA, LLC
APQ Studio City CA, LLC
DE
100%
by LPQ USA, LLC
APQ Tribeca NY, LLC
DE
100%
by LPQ USA, LLC
APQ Tuxedo Bakery MD, LLC
DE
100%
by LPQ USA, LLC
APQ Verdi Park NY, LLC
DE
100%
by LPQ USA, LLC
APQ Villa Marina CA, LLC
DE
100%
by LPQ USA, LLC
APQ Westlake CA, LLC
DE
100%
by LPQ USA, LLC
APQ Wildwood MD, LLC
DE
100%
by LPQ USA, LLC
Arch Portfolio Trust, LLC
DE
100%
by EPH, LLC
ARK PIPE Fund I, LLC
DE
100%
by Bruce Park Portfolio Trust, LLC
Armstrong Portfolio Trust, LLC
DE
100%
by EPH, LLC
Arotr LLC
DE
49.0%
by StarVista Live LLC
Arstar Productions, LLC
CA
100%
by Keshet/dcp LLC
Asbury Boss, LLC
DE
100%
by Eldridge IP Holdings LLC
Asian Perspective Media, LLC
DE
85.0%
by Valence APM, LLC
Associated Aircraft Group, LLC
DE
100%
by Flexjet Vertical Lift, LLC
Asylum Holdings, LLC
CO
100%
by 13 FEG Haunted Holdings, LLC
Atlas Funding, LLC
DE
100%
by Monterey Portfolio Trust, LLC
Atlas HI GP LLC
DE
100%
by Cain International II LP
Atlas IntermediateCo LLC
DE
100%
by Atlas Venture Holdings LP
Atlas Venture Holdings LP
DE
50.0%
by ACZ Investments LP
Atlas Venture Investment LP
DE
100%
by Atlas Venture Holdings LP
Auburndale, LLC
KS
100%
by Sherwood Park, Inc.
Auld Fella UK Limited
GBR
100%
by MRC II Holdings, LP
Auld Fella, LLC
CA
100%
by MRC II Holdings, LP
Aurify Brands Holdings, LLC
NY
100%
by Aurify Brands, LLC
Aurify Brands Management, LLC
DE
100%
by Aurify Brands, LLC
Aurify Brands, LLC
NY
23.2%
by Arch Portfolio Trust, LLC
Aurify Brands, LLC
NY
30.1%
by Palmer Portfolio Trust, LLC
Aurify Brands, LLC
NY
29.7%
by Putnam Asset Holdings, LLC
Aurify Fish Tacos Holdings LLC
NY
100%
by Aurify Brands Holdings, LLC
Ausenco Bidco, LLC
DE
100%
by Ausenco Holdings, LLC
Ausenco Funding, LLC
DE
100%
by Eldridge Industries, LLC
Ausenco Holdings, LLC
DE
100%
by Ausenco Funding, LLC
Backboard Limited
GBR
100%
by Fulwell 73 UK Limited
Baia Waterviews LLC
DE
100%
by CHE Edgewater LLC
Baleta sp.zo.o
Poland
100%
by PZO JV B.V.
Ballinshire Asset Holdings, LLC
DE
100%
by Ballinshire Capital Funding Trust
Ballinshire Asset Holdings, LLC
DE
100%
by EPH Holdings, LLC
Ballinshire Capital Funding Trust
DE
100%
by EPH Holdings, LLC
7
Name
Jurisdiction
Percent of Voting Securities Owned
Ballinshire FA Holdings, LLC
NJ
100%
by Ballinshire Capital Funding Trust
Bambino Films LLC
DE
100%
by MRC II Holdings, LP
Bambino Films UK Limited
GBR
100%
by MRC II Holdings, LP
Banner Creek Bridge, LLC
KS
100%
by Sherwood Park, Inc.
BBMA Holdings I, LLC
DE
100%
by DCP Holdings DE, LLC
BBMA Holdings, LLC
DE
100%
by DCP Rights, LLC
BBMA Parent, LLC
DE
100%
by CP Investment Holdings, LLC
BCM 625 Broadway Holdco LLC
DE
93.0%
by CI San Diego Holdings LLC
BCM 625 Broadway LLC
DE
100%
by BCM 625 Broadway Holdco LLC
Beach Hotel Associates LLC
DE
100%
by EC 17th Street MezzCo LLC
Bear Season Productions Inc.
CAN
100%
by A24 Films LLC
Bedford Portfolio Trust, LLC
DE
100%
by EPH, LLC
Beef LLC
DE
100%
by A24 Films LLC
BEEU The Film Limited
GBR
100%
by Fulwell 73 UK Limited
Benedict White, LLC
CA
100%
by MRC II Holdings, LP
Bentley Park, LLC
DE
100%
by Security Benefit Life Insurance Company
BFT Entertainment Inc
DE
100%
by Fulwell 73 Productions US, Inc.
BFT Entertainment LLC
CA
100%
by BFT Entertainment Inc
BH Luxury Residences, LLC
DE
100%
by BHLR Investco, LLC
BHLR Intermediate Co, LLC
DE
100%
by BHLR Investco, LLC
BHLR Investco, LLC
DE
65.0%
by CI BH Holdings LLC
Big Easy Cruise 23, LLC
DE
100%
by StarVista Live LLC
Big Springs, LLC
KS
100%
by Dayton Funding, LLC
Big Swing LLC
DE
100%
by A24 Films LLC
Bilbao Asset Holdings, LLC
DE
100%
by Bilbao Capital, LLC
Bilbao Capital, LLC
DE
100%
by SBT Investors, LLC
Bilbao-KCI, LLC
DE
90.0%
by Bilbao Capital, LLC
Billboard IP Holdings LLC
DE
50.0%
by Billboard Media, LLC
Billboard IP Holdings, LLC
DE
50.0%
by BBMA Holdings, LLC
Billboard Media, LLC
DE
100%
by PME Music, LLC
Binney Park Capital, LLC
DE
0%
Mgmt. by Panagram Structured Asset Management,
LLC
Birdie 3 Limited
GBR
100%
by Eagle 2 Limited
Bitachon 365 Limited
GBR
60.0%
by Fulwell 73 LUK Limited
Blackbrook Capital (Europe) Carry LP
GBR
0%
Mgmt. by Blackbrook Capital (Europe) GP, LLC
Blackbrook Capital (Europe) GP, LLC
DE
100%
by Eldridge BB Holdings, LLC
Blackbrook Capital (Europe) Limited
GBR
100%
by Blackbrook Capital (Europe) LP
Blackbrook Capital (Europe) LP
GBR
0%
Mgmt. by Blackbrook Capital (Europe) GP, LLC
Blackbrook Capital (Europe) LP
GBR
96.03%
by Eldridge BBLP, LLC
Blackbrook Capital (Europe) SARL
LUX
100%
by Blackbrook Capital (Europe) LP
Blackbrook Property Holdings SARL
LUX
100%
by Blackbrook Capital (Europe) SARL
BlackRock Impact Opportunities (CAIS), L.P.
DE
0%
Mgmt. by CAIS BlackRock Impact Opportunities GP
LLC
Blue Cat Productions, LLC
DE
100%
by MRC II Holdings, LP
Bombshow Productions, LLC
CA
100%
by Keshet/dcp LLC
Boundless The Film Limited
GBR
100%
by Fulwell 73 UK Limited
Brewskee Limited
GBR
100%
by Competitive Socialising Limited
Bridge Road Southall 2 Limited
GBR
100%
by Bridge Road Southall Limited
Bridge Road Southall Limited
GBR
100%
by HoneyMonster HoldCo 2 Limited
Bridge Road Southall NewCo Limited
GBR
100%
by Bridge Road Southall Limited
Brightside CDN Productions Inc.
CAN
100%
by MRC II Holdings, LP
Brightside Productions LLC
CA
100%
by MRC II Holdings, LP
Brightside Productions LLC
NJ
100%
by MRC II Holdings, LP
8
Name
Jurisdiction
Percent of Voting Securities Owned
Bronx to Brooklyn LLC
DE
100%
by A24 Films LLC
Brook Creek Portfolio Trust, LLC
DE
100%
by Dayton Funding, LLC
Brookville Industries, LLC
KS
100%
by Dayton Funding, LLC
Bros The Film Limited
GBR
100%
by Fulwell 73 UK Limited
Bruce Park Portfolio Trust, LLC
DE
100%
by EPH, LLC
BRUMMIE Productions LLC
CA
100%
by BFT Entertainment Inc
Buda Hills JV B.V.
Netherlands
90.0%
by CIEF1 UK Holdings Limited
C092 The Film Limited
GBR
50.0%
by Fulwell 73 Limited
C4G Holdings, LLC
DE
100%
by Lifestyle Products Group LLC
Caesars Request LLC
DE
100%
by A24 Films LLC
Cain Development GP LLC
DE
100%
by Cain International II LP
Cain Development LP
DE
100%
by Cain International II LP
Cain FinCo LLC
DE
100%
by Cain International LP
Cain Hoy Finance Limited
GBR
100%
by Cain PE LLC
Cain Hoy UK Holdings Limited
MLT
100%
by CHE UK Holdings LP
Cain Hoy US LLC
DE
100%
by Cain International LP
Cain International Advisers Ltd
GBR
100%
by Cain International AM LP
Cain International Agent Ltd
GBR
100%
by Cain International AM LP
Cain International AM LP
GBR
0%
Mgmt. by CI AM GP Ltd
Cain International European Real Estate
Opportunity Fund I GP Limited
GBR
100%
by Cain International AM LP
Cain International European Real Estate
Opportunity Fund I GP Limited
JEY
100%
by Cain International AM LP
Cain International European Real Estate
Opportunity Fund I LP
GBR
0%
Mgmt. by Cain International European Real Estate
Opportunity Fund I GP Limited
Cain International European Real Estate
Opportunity Fund I LP
JEY
0%
Mgmt. by Cain International European Real Estate
Opportunity Fund I GP Limited
Cain International II LP
DE
0%
Mgmt. by Eldridge CH GP LLC
Cain International LP
DE
0%
Mgmt. by Eldridge CH GP LLC
Cain International Management Ltd
GBR
100%
by Cain International AM LP
Cain International UK Services Ltd
GBR
100%
by Cain International AM LP
Cain International US Services LP
DE
0%
Mgmt. by CI US Services GP LLC
Cain PE LLC
DE
100%
by Cain International LP
Cain RE LLC
DE
100%
by Cain International LP
CAIS Access Fund - Asia Fund IV GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Access Fund - Asia Fund IV LP
DE
0%
Mgmt. by CAIS Access Fund - Asia Fund IV GP LLC
CAIS Access Fund - BCRE I GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Access Fund - BCRE I LP
DE
0%
Mgmt. by CAIS Access Fund - BCRE I GP LLC
CAIS Access Fund - BCRE II GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Access Fund - BCRE II LP
DE
0%
Mgmt. by CAIS Access Fund - BCRE II GP LLC
CAIS Access Fund - MMC 2018 (Offshore) LP
CYM
0%
Mgmt. by CAIS Access Fund - MMC 2018 GP LLC
CAIS Access Fund - MMC 2018 GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Access Fund - MMC 2018 LP
DE
0%
Mgmt. by CAIS Access Fund - MMC 2018 GP LLC
CAIS Adams Street Private Income Fund LLC
DE
100%
by Capital Integration Systems LLC
CAIS Alkeon Innovation Private Series II GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Alkeon Innovation Private Series II LP
DE
0%
Mgmt. by CAIS Alkeon Innovation Private Series II
GP LLC
CAIS AltAlpha Vintage LLC
DE
100%
by Capital Integration Systems LLC
CAIS Apollo Aligned Alternatives Fund (TE) LLC
DE
100%
by Capital Integration Systems LLC
CAIS Apollo Aligned Alternatives Offshore Fund
Ltd.
CYM
0%
Mgmt. by Capital Integration Systems LLC
CAIS Apollo Debt Solutions BDC Offshore Fund
Ltd.
CYM
0%
Mgmt. by Capital Integration Systems LLC
9
Name
Jurisdiction
Percent of Voting Securities Owned
CAIS Apollo HV Access Fund GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Apollo Hybrid Value Access Fund LP
DE
0%
Mgmt. by CAIS Apollo HV Access Fund GP LLC
CAIS Apollo Infrastructure Opportunities II
Access Fund GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Apollo Infrastructure Opportunities II
Access Fund LP
DE
0%
Mgmt. by CAIS Apollo Infrastructure Opportunities II
Access Fund GP LLC
CAIS Apollo Investment Fund X GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Apollo Investment Fund X Offshore GP
LLC
DE
100%
by Capital Integration Systems LLC
CAIS Apollo Investment Fund X Offshore, LP
CYM
0%
Mgmt. by CAIS Apollo Investment Fund X Offshore
GP LLC
CAIS Apollo Investment Fund X, LP
DE
0%
Mgmt. by CAIS Apollo Investment Fund X GP LLC
CAIS Apollo S3 Equity & Hybrid Solutions Fund
(TE) GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Apollo S3 Equity & Hybrid Solutions Fund
(TE), L.P.
DE
0%
Mgmt. by CAIS Apollo S3 Equity & Hybrid Solutions
Fund (TE) GP LLC
CAIS Apollo S3 Equity & Hybrid Solutions Fund
GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Apollo S3 Equity & Hybrid Solutions Fund
Offshore GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Apollo S3 Equity & Hybrid Solutions Fund
Offshore, L.P.
CYM
0%
Mgmt. by CAIS Apollo S3 Equity & Hybrid Solutions
Fund Offshore GP LLC
CAIS Apollo S3 Equity & Hybrid Solutions Fund,
L.P.
DE
0%
Mgmt. by CAIS Apollo S3 Equity & Hybrid Solutions
Fund GP LLC
CAIS Ares Corporate Opportunities Fund VII GP
LLC
DE
100%
by Capital Integration Systems LLC
CAIS Ares Corporate Opportunities Fund VII, L.P.
DE
0%
Mgmt. by CAIS Ares Corporate Opportunities Fund
VII GP LLC
CAIS Ares Senior Direct Lending II (TE) GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Ares Senior Direct Lending II (TE) LP
DE
0%
Mgmt. by CAIS Ares Senior Direct Lending II (TE)
GP LLC
CAIS Ares Senior Direct Lending II GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Ares Senior Direct Lending II LP
DE
0%
Mgmt. by CAIS Ares Senior Direct Lending II GP
LLC
CAIS Ares Senior Direct Lending III GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Ares Senior Direct Lending III TE GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Ares Senior Direct Lending III TE, L.P.
DE
0%
Mgmt. by CAIS Ares Senior Direct Lending III TE
GP LLC
CAIS Ares Senior Direct Lending III, L.P.
DE
0%
Mgmt. by CAIS Ares Senior Direct Lending III GP
LLC
CAIS Avenue Venture Opportunities Fund II GP
LLC
DE
100%
by Capital Integration Systems LLC
CAIS Avenue Venture Opportunities Fund II, L.P.
DE
0%
Mgmt. by CAIS Avenue Venture Opportunities Fund
II GP LLC
CAIS BC Fund XIII, GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS BC Fund XIII, LP
DE
0%
Mgmt. by CAIS BC Fund XIII, GP LLC
CAIS BlackRock Impact Opportunities GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Blackstone Growth GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Blackstone Growth LP
DE
0%
Mgmt. by CAIS Blackstone Growth GP LLC
CAIS Blackstone Tactical Opportunities Fund IV
GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Blackstone Tactical Opportunities Fund IV
LP
DE
0%
Mgmt. by CAIS Blackstone Tactical Opportunities
Fund IV GP LLC
CAIS Blackstone TAS V GP LLC
DE
100%
by Capital Integration Systems LLC
10
Name
Jurisdiction
Percent of Voting Securities Owned
CAIS Blackstone TAS V LP
DE
0%
Mgmt. by CAIS Blackstone TAS V GP LLC
CAIS Blackstone TAS VI GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Blackstone TAS VI LP
DE
0%
Mgmt. by CAIS Blackstone TAS VI GP LLC
CAIS Blue Owl Strategic Equity GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Blue Owl Strategic Equity, L.P.
DE
0%
Mgmt. by CAIS Blue Owl Strategic Equity GP LLC
CAIS Bridge Net Lease Income Fund GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Bridge Net Lease Income Fund, L.P.
DE
0%
Mgmt. by CAIS Bridge Net Lease Income Fund GP
LLC
CAIS BSP SSP II GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS BSP SSP II, L.P.
DE
0%
Mgmt. by CAIS BSP SSP II GP LLC
CAIS BTAS VIII Access Fund GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS BTAS VIII Access Fund, LP
DE
0%
Mgmt. by CAIS BTAS VIII Access Fund GP LLC
CAIS Capital LLC
DE
100%
by Capital Integration Systems LLC
CAIS Carlyle Direct Access GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Carlyle Direct Access II GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Carlyle Direct Access II LP
DE
0%
Mgmt. by CAIS Carlyle Direct Access II GP LLC
CAIS Carlyle Direct Access LP
DE
0%
Mgmt. by CAIS Carlyle Direct Access GP LLC
CAIS Carlyle Realty Partners IX Access Fund GP
LLC
DE
100%
by Capital Integration Systems LLC
CAIS Carlyle Realty Partners IX Access Fund LP
DE
0%
Mgmt. by CAIS Carlyle Realty Partners IX Access
Fund GP LLC
CAIS Carlyle Renewable and Sustainable Energy
Fund GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Carlyle Renewable and Sustainable Energy
Fund LP
DE
0%
Mgmt. by CAIS Carlyle Renewable and Sustainable
Energy Fund GP LLC
CAIS Commerce Street Private Credit Fund I GP
LLC
DE
100%
by Capital Integration Systems LLC
CAIS Commerce Street Private Equity Fund I GP
LLC
DE
100%
by Capital Integration Systems LLC
CAIS Crawford Lake Fund Ltd.
CYM
0%
Mgmt. by Capital Integration Systems LLC
CAIS Crow Holdings Fund X GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Crow Holdings Fund X, L.P.
DE
0%
Mgmt. by CAIS Crow Holdings Fund X GP LLC
CAIS Davidson Kempner Partners Fund LLC
DE
100%
by Capital Integration Systems LLC
CAIS DES Composite Fund LLC
DE
100%
by Capital Integration Systems LLC
CAIS DES Oculus LLC
DE
100%
by Capital Integration Systems LLC
CAIS DES Oculus Ltd.
CYM
0%
Mgmt. by Capital Integration Systems LLC
CAIS Financial Credit Investment IV Access Fund
GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Financial Credit Investment IV Access Fund
LP
DE
0%
Mgmt. by CAIS Financial Credit Investment IV
Access Fund GP LLC
CAIS Franklin BSP Real Estate Opportunistic
Debt Fund II GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Franklin BSP Real Estate Opportunistic
Debt Fund II, L.P.
DE
0%
Mgmt. by CAIS Franklin BSP Real Estate
Opportunistic Debt Fund II GP LLC
CAIS GLT Private Alts Fund I GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS HPS Strategic Investment Partners V GP
LLC
DE
100%
by Capital Integration Systems LLC
CAIS HPS Strategic Investment Partners V, L.P.
DE
0%
Mgmt. by CAIS HPS Strategic Investment Partners V
GP LLC
CAIS ICG Core Private Equity Fund, LLC
DE
100%
by Capital Integration Systems LLC
CAIS ICG Strategic Equity III GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS ICG Strategic Equity III LP
DE
0%
Mgmt. by CAIS ICG Strategic Equity III GP LLC
CAIS ICG Strategic Equity IV GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS ICG Strategic Equity IV LP
DE
0%
Mgmt. by CAIS ICG Strategic Equity IV GP LLC
11
Name
Jurisdiction
Percent of Voting Securities Owned
CAIS ICG Strategic Equity V GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS ICG Strategic Equity V, L.P.
DE
0%
Mgmt. by CAIS ICG Strategic Equity V GP LLC
CAIS ICGSEIV Offshore GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS ICGSEIV Offshore, L.P.
CYM
0%
Mgmt. by CAIS ICGSEIV Offshore GP LLC
CAIS ICGSEV Offshore GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS ICGSEV Offshore, L.P.
CYM
0%
Mgmt. by CAIS ICGSEV Offshore GP LLC
CAIS Insurance Solutions LLC
DE
100%
by Capital Integration Systems LLC
CAIS KKR Asset Based Finance Partners Access
Fund GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS KKR Asset Based Finance Partners Access
Fund, LP
DE
0%
Mgmt. by CAIS KKR Asset Based Finance Partners
Access Fund GP LLC
CAIS KKR Asset Based Finance Partners
Offshore Access Fund, LP
CYM
0%
Mgmt. by CAIS KKR Asset Based Finance Partners
Access Fund GP LLC
CAIS Mercer Private Equity Vintage Fund (TE) I
LP
DE
0%
Mgmt. by CM PEVF I GP LLC
CAIS Mercer Private Equity Vintage Fund I LP
DE
0%
Mgmt. by CM PEVF I GP LLC
CAIS Mercer Private Equity Vintage Fund II LP
DE
0%
Mgmt. by CM PEVF II GP LLC
CAIS Mercer Private Equity Vintage Fund III LP
DE
0%
Mgmt. by CM PEVF III GP LLC
CAIS Mercer Private Equity Vintage Fund IV LP
DE
0%
Mgmt. by CM PEVF IV GP LLC
CAIS Millennium Intl. Commitment Fund Ltd.
CYM
0%
Mgmt. by Capital Integration Systems LLC
CAIS Millennium Intl. Ltd.
CYM
0%
Mgmt. by Capital Integration Systems LLC
CAIS Millennium USA Commitment Fund LLC
DE
100%
by Capital Integration Systems LLC
CAIS Millennium USA LLC
DE
100%
by Capital Integration Systems LLC
CAIS Monroe PCF V (Onshore) GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Monroe PCF V (Onshore), L.P.
DE
0%
Mgmt. by CAIS Monroe PCF V (Onshore) GP LLC
CAIS North Rock Fund LLC
DE
100%
by Capital Integration Systems LLC
CAIS North Rock Fund, Ltd.
CYM
100%
by Capital Integration Systems LLC
CAIS OT Opportunities XII CAIS (Onshore)
Access Fund GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Paloma International Ltd.
CYM
0%
Mgmt. by Capital Integration Systems LLC
CAIS Paloma Partners LLC
DE
100%
by Capital Integration Systems LLC
CAIS Private Equity Core I GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Private Equity Core I, L.P.
DE
0%
Mgmt. by CAIS Private Equity Core I GP LLC
CAIS Reverence Capital Partners Credit
Opportunities Fund II GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Reverence Capital Partners Credit
Opportunities Fund II, L.P.
DE
0%
Mgmt. by CAIS Reverence Capital Partners Credit
Opportunities Fund II GP LLC
CAIS Reverence Partners Opportunities Fund V
(PE Fund III) GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Reverence Partners Opportunities Fund V
(PE Fund III) L.P.
DE
0%
Mgmt. by CAIS Reverence Partners Opportunities
Fund V (PE Fund III) GP LLC
CAIS SAM Alternative Investment Opportunities
Fund I GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Sculptor Master Fund LLC
DE
100%
by Capital Integration Systems LLC
CAIS Sculptor Master Fund Ltd.
CYM
0%
Mgmt. by Capital Integration Systems LLC
CAIS SL Alpine II, GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS SL Alpine II, LP
DE
0%
Mgmt. by CAIS SL Alpine II, GP LLC
CAIS SSA Strategic Partners LLC
DE
100%
by Capital Integration Systems LLC
CAIS Stonepeak Infrastructure Fund V GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Stonepeak Infrastructure Fund V, L.P.
DE
0%
Mgmt. by CAIS Stonepeak Infrastructure Fund V GP
LLC
CAIS Strategic Investors Fund XI GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Strategic Investors Fund XI, L.P.
DE
100%
by CAIS Strategic Investors Fund XI GP LLC
12
Name
Jurisdiction
Percent of Voting Securities Owned
CAIS TCG Private Credit (Offshore) 2024 GP
LLC
DE
100%
by Capital Integration Systems LLC
CAIS TCG Private Credit 2024 GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS TCG Private Equity 2022 GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Third Point Offshore Fund Ltd.
CYM
0%
Mgmt. by Capital Integration Systems LLC
CAIS Third Point Partners LLC
DE
100%
by Capital Integration Systems LLC
CAIS Vista Equity Partners Fund VIII GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Vista Equity Partners Fund VIII Offshore
GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS Vista Equity Partners Fund VIII Offshore,
L.P.
CYM
0%
Mgmt. by CAIS Vista Equity Partners Fund VIII
Offshore GP LLC
CAIS Vista Equity Partners Fund VIII, L.P.
DE
0%
Mgmt. by CAIS Vista Equity Partners Fund VIII GP
LLC
CAIS Warburg Pincus Global Growth (Fund XIV)
, L.P.
DE
0%
Mgmt. by CAIS Warburg Pincus Global Growth
(Fund XIV) GP LLC
CAIS Warburg Pincus Global Growth (Fund XIV)
GP LLC
DE
100%
by Capital Integration Systems LLC
CAIS WorldQuant Millennium SEALS Fund LLC
DE
100%
by Capital Integration Systems LLC
CAIS WorldQuant Millennium SEALS Offshore
Fund Ltd.
CYM
0%
Mgmt. by Capital Integration Systems LLC
Camp Blood LLC
DE
100%
by A24 Films LLC
Canon Portfolio Trust, LLC
KS
100%
by EPH, LLC
Capital Integration Systems LLC
DE
23.0%
by Eldridge CG Holdings LLC
CardCash Holdings, LLC
DE
86.0%
by Wanamaker Portfolio Trust, LLC
Cardinal River LLC
DE
100%
by A24 Films LLC
Carlostron, LLC
DE
100%
by Media Rights Capital II, LLC
Carlton Portfolio Trust, LLC
DE
100%
by EPH, LLC
Cary Street Capital, LLC
DE
0%
Mgmt. by EEH 2017 Prefered Member, LLC
Cavalcade Productions, LLC
DE
100%
by MRC II Holdings, LP
CBAM Agency Services, LLC
DE
100%
by CBAM Partners, LLC
CBAM Charleston, LLC
DE
100%
by CBAM Holdings, LLC
CBAM Credit Opportunities Fund GP, LLC
DE
100%
by CBAM Partners, LLC
CBAM Credit Opportunities Fund, LP
DE
100%
by CBAM Partners, LLC
CBAM Credit Opportunities Master Fund, LP
CYM
100%
by CBAM Partners, LLC
CBAM Credit Opportunities Offshore Fund, LP
CYM
100%
by CBAM Partners, LLC
CBAM Equity Fund GP, LLC
DE
100%
by CBAM Partners, LLC
CBAM Equity Fund, LP
DE
100%
by CBAM Equity Fund GP, LLC
CBAM Feeco, LLC
DE
100%
by CBAM Partners, LLC
CBAM Holdings, LLC
DE
56.5%
by Eldridge AM Holdings, LLC
CBAM Partners, LLC
DE
100%
by CBAM Holdings, LLC
CBAM Secured Loan Fund GP, LLC
DE
100%
by CBAM Holdings, LLC
CBAM Secured Loan Fund, LP
DE
100%
by CBAM Secured Loan Fund GP, LLC
CBAM SPAC Fund GP, LLC
DE
100%
by CBAM Partners, LLC
CBAM SPAC Fund, LP
DE
100%
by CBAM Partners, LLC
Celiana sp. zo. O
Poland
100%
by PZO JV B.V.
CF-G Funding II, LLC
DE
100%
by Gennessee Insurance Agency, LLC
CF-G Funding III, LLC
DE
100%
by Gennessee Insurance Agency, LLC
CF-G Funding, LLC
DE
100%
by Gennessee Insurance Agency, LLC
CH Capital A Holdings LLC
DE
100%
by Cain RE LLC
CH Capital B Holdings, LLC
DE
100%
by CH Capital A Holdings LLC
CH McCourt (The Stage) LLC
DE
0%
Board rights held by CH Capital A Holdings LLc
Chain Bridge Opportunistic Funding Holdings,
LLC
KS
100%
by Sherwood Park, Inc.
13
Name
Jurisdiction
Percent of Voting Securities Owned
Chain Bridge Opportunistic Funding, LLC
KS
100%
by Chain Bridge Opportunistic Funding Holdings,
LLC
CHE 830 Brickell LLC
DE
100%
by CHE Miami Holdings LLC
CHE Edgewater LLC
DE
100%
by CHE Miami Holdings LLC
CHE Miami Holdings LLC
DE
100%
by Cain RE LLC
CHE NE Street LLC
DE
100%
by CHE Miami Holdings LLC
CHE SJG Holdings LLC
DE
100%
by Cain PE LLC
CHE SJG LLC
DE
100%
by CHE SJG Holdings LLC
CHE South Brickell LLC
DE
100%
by CHE Miami Holdings LLC
CHE UK GP Limited
JEY
100%
by Cain International LP
CHE UK Holdings LP
JEY
0%
Mgmt. by CHE UK GP Limited
CHE US Holdings LLC
DE
100%
by Cain International LP
Chemex I Corp.
OK
100%
by El Dorado Chemical Company
Cherokee Nitrogen L.L.C.
OK
100%
by LSB Chemical L.L.C.
Chisholm Trail, LLC
KS
100%
by Security Benefit Life Insurance Company
CI AM GP Ltd
GBR
100%
by Cain International II LP
CI AM UK Holdings Limited
GBR
100%
by Cain International AM LP
CI BH Holdings II LLC
DE
71.5%
by Cain RE LLC
CI BH Holdings II LLC
DE
28.51%
by Mason Portfolio Trust, LLC
CI BH Holdings LLC
DE
71.5%
by One BH Investors LLC
CI BH Holdings LLC
DE
28.5%
by Wanamaker Portfolio Trust, LLC
CI Boston Holdings LLC
DE
100%
by Cain RE LLC
CI CB3 Subfund
Ireland
100%
by Cain International European Real Estate
Opportunity Fund I LP
CI Co-Invest I LLP
GBR
25.0%
by Cain International Management Ltd
CI Diplomat Holdings LLC
DE
1.0%
by Cain International LP
CI EREO I CIP GP Limited
GBR
100%
by Cain International AM LP
CI EREO I CIP GP Limited
JEY
100%
by Cain International AM LP
CI EREO I CIP LP
GBR
0%
Mgmt. by CI EREO I CIP GP Limited
CI EREO I CIP LP
JEY
0%
Mgmt. by CI EREO I CIP GP Limited
CI ExchangeCo Limited
GBR
100%
by Cain FinCo LLC
CI FCL Funding 1 Limited
GBR
100%
by CI FCL Investor LP
CI FCL Investor GP Limited
GBR
100%
by Cain International LP
CI FCL Investor LP
GBR
100%
by CI FCL Investor GP Limited
CI FLL Holdings, LLC
DE
100%
by Cain RE LLC
CI Founder Partner GP LLC
DE
100%
by Cain RE LLC
CI Founder Partner LP
DE
0%
Mgmt. by Cain RE LLC
CI GGL Limited
GBR
100%
by CH Capital A Holdings LLC
CI HM Holdings LLP
GBR
100%
by Cain RE LLC
CI HM InvestCo Limited
GBR
100%
by CI HM Holdings LLP
CI Koryfeum Sarl
LUX
100%
by CIEF1 UK Holdings Limited
CI Logistics Strat 1 GP Limited
JEY
100%
by Cain International AM LP
CI Logistics Strat 1 LP
JEY
100%
by CI Logistics Strat CIP 1 LP
CI Logistics Strat CIP 1 GP Limited
JEY
100%
by Cain International AM LP
CI Logistics Strat CIP 1 LP
JEY
100%
by Cain International AM LP
CI Milan Limited
GBR
95.0%
by Jampurchaseco Limited
CI Roman Holdings Sarl
LUX
100%
by CIEF1 UK Holdings Limited
CI San Diego Holdings LLC
DE
14.26%
by Cain RE LLC
CI SF Holdings Limited
GBR
100%
by Cain RE LLC
CI Student Strat 1 CIP GP Limited
JEY
100%
by Cain International AM LP
CI Student Strat 1 CIP SLP
JEY
100%
by Cain International Management Ltd
CI Student Strat 1 GP Limited
JEY
100%
by Cain International AM LP
CI Student Strat 1 LP
JEY
100%
by CI Student Strat 1 CIP SLP
14
Name
Jurisdiction
Percent of Voting Securities Owned
CI US Services GP LLC
DE
100%
by Cain International AM LP
CI W57th Street Holdings LLC
DE
100%
by Cain RE LLC
CIEF1 UK Holdings Limited
GBR
100%
by Cain International European Real Estate
Opportunity Fund I LP
CI-F Zenith GP Limited
JEY
100%
by CI Student Strat 1 LP
CI-F Zenith LP
JEY
95.0%
by CI Student Strat 1 LP
CI-F Zenith UK Holdings Limited
GBR
100%
by CI-F Zenith LP
CILS 1 UK Holdings Limited
GBR
100%
by CI Logistics Strat 1 LP
CILS Barnsley Limited
GBR
100%
by CILS 1 UK Holdings Limited
CILS Belvedere Limited
GBR
100%
by CILS 1 UK Holdings Limited
CILS Ellesmere Limited
GBR
100%
by CILS 1 UK Holdings Limited
CILS Leighton Buzzard Limited
GBR
100%
by CILS 1 UK Holdings Limited
CILS Milton Limited
GBR
100%
by CILS 1 UK Holdings Limited
CILS Petersborough Limited
GBR
100%
by CILS 1 UK Holdings Limited
CILS Sherburn Limited
GBR
100%
by CILS 1 UK Holdings Limited
CIM Zenith Master Holdings Ltd
JEY
100%
by CI Student Strat 1 LP
CIM Leeds Holdings Limited
GBR
100%
by CIM Zenith UK Holdings II Limited
CIM Manchester Holdings Limited
GBR
100%
by CIM Zenith UK Holdings Limited
CIM Nottingham Holdings 2 Limited
GBR
100%
by CIM Zenith UK Holdings Limited
CIM Nottingham Holdings Limited
GBR
100%
by CIM Zenith UK Holdings II Limited
CIM York Holdings Limited
GBR
100%
by CIM Zenith UK Holdings II Limited
CIM Zenith UK Holdings II Limited
GBR
100%
by CIM Zenith Master Holdings Ltd
CIM Zenith UK Holdings Limited
GBR
100%
by CIM Zenith Master Holdings Ltd
Circle Back LLC
DE
100%
by A24 Films LLC
CL The Film Limited
GBR
100%
by Fulwell 73 UK Limited
Click Records, Inc.
DE
100%
by DCP Holdco I LLC
CM PEVF I GP LLC
DE
100%
by Capital Integration Systems LLC
CM PEVF II GP LLC
DE
100%
by Capital Integration Systems LLC
CM PEVF III GP LLC
DE
100%
by Capital Integration Systems LLC
CM PEVF IV GP LLC
DE
100%
by Capital Integration Systems LLC
Collins Park, LLC
KS
100%
by Dayton Funding, LLC
Commerce Street Private Credit Fund I, L.P.
DE
0%
Mgmt. by CAIS Commerce Street Private Credit Fund
I GP LLC
Commerce Street Private Equity Fund I, L.P.
DE
0%
Mgmt. by CAIS Commerce Street Private Equity
Fund I GP LLC
Competitive Socialising Group Limited
GBR
68.81%
by Jampurchaseco Limited
Competitive Socialising Limited
GBR
100%
by Jampurchaseco Limited
Competitive Socializing US LLC
DE
100%
by Competitive Socialising Limited
Constant Aviation, LLC
OH
100%
by Fairgrave Omlie, LLC
Convergent Financial Technologies LLC
DE
100%
by Zinnia Tech Solutions LLC
Convive Brands, LLC
DE
100%
by Aurify Brands, LLC
Coronado Heights, LLC
KS
100%
by Security Benefit Life Insurance Company
Corporate Wings Technical Services LLC
OH
100%
by Fairgrave Omlie, LLC
Country Music Cruise 18 LLC
DE
100%
by StarVista Live LLC
Country Music Cruise 19 LLC
DE
100%
by StarVista Live LLC
Country Music Cruise 20 LLC
DE
100%
by StarVista Live LLC
Country Music Cruise 21 LLC
DE
100%
by StarVista Live LLC
Country Music Cruise 23 LLC
DE
100%
by StarVista Live LLC
Covering Multiple Shows Inc.
CAN
100%
by A24 Films LLC
CP Investment Holdings, LLC
DE
100%
by dcp Holdco II, LLC
CPI Productions, Inc.
DE
100%
by DCP Holdco I LLC
Crack in the Earth Limited
DE
100%
by A24 Films LLC
Crack in the Earth LLC
DE
100%
by After The Fact LLC
15
Name
Jurisdiction
Percent of Voting Securities Owned
Crack in the Earth Rights LLC
DE
100%
by A24 Films LLC
Creativity Media Ltd
GBR
100%
by Fulwell 73 Limited
Crestview Park, LLC
KS
100%
by Chain Bridge Opportunistic Funding Holdings,
LLC
Croatan Holdings, LLC
DE
0%
Mgmt. by EEH 2017 Prefered Member, LLC
CSL (Jam) Limited
GBR
100%
by Competitive Socialising Limited
Culper211 LLC
DE
65.0%
by SCF Aviation Capital LLC
Cyrus Portfolio Trust, LLC
DE
100%
by Dayton Funding, LLC
Dancing Pictures Limited
New
Zealand
100%
by A24 Distribution, LLC
Davis Portfolio Trust, LLC
DE
100%
by EPH, LLC
Dawn Acres V, LLC
DE
100%
by Sherwood Park, Inc.
Dawson 1967, LLC
KS
100%
by Sherwood Park, Inc.
Dayton Funding II, LLC
DE
100%
by Sherwood Park, Inc.
Dayton Funding, LLC
DE
100%
by Dayton Funding II, LLC
DC Company Music, LLC
CA
100%
by Dick Clark Productions, LLC
dcp Corp.
DE
100%
by DCP Holdco I LLC
dcp Disc Inc.
DE
100%
by DCP Holdco I LLC
DCP Funding LLC
DE
81.5%
by EMG HoldCo, LLC
DCP Guaranty Services, LLC
DE
100%
by Dick Clark Productions, LLC
DCP Holdco I LLC
DE
100%
by DCP Funding LLC
dcp Holdco II, LLC
DE
100%
by Valence Media, LLC
DCP Holdings DE, LLC
DE
100%
by CP Investment Holdings, LLC
DCP Rights, LLC
DE
100%
by DCP Guaranty Services, LLC
dcp TL Funding LLC
DE
50.0%
by CP Investment Holdings, LLC
Dcpg investco, LLC
DE
100%
by Eldridge Media Group, LLC
Dcpl investco, LLC
DE
100%
by Eldridge Media Group, LLC
Death Match LLC
DE
100%
by A24 Films LLC
Death On A Tuesday LLC
DE
100%
by A24 Films LLC
Death Yell LLC
DE
100%
by A24 Films LLC
Deer Creek Portfolio Trust, LLC
DE
100%
by Dayton Funding, LLC
Denver Zombie Crawl, LLC
CO
100%
by 13 FEG Touring Events, LLC
Desert Screams LLC
AZ
100%
by 13 FEG Haunted Holdings, LLC
DHAI Video LLC
DE
100%
by Direct Holdings Global LLC
Dick Clark Communications, Inc.
DE
100%
by DCP Holdco I LLC
Dick Clark Features, Inc.
CA
100%
by DCP Holdco I LLC
Dick Clark Film Group, Inc.
CA
100%
by DCP Holdco I LLC
Dick Clark Kids, Inc.
DE
100%
by DCP Holdco I LLC
Dick Clark Media Archives, LLC
CA
100%
by Dick Clark Productions, LLC
Dick Clark Productions, LLC
DE
100%
by DCP Holdings DE, LLC
Dick Clark Restaurants, Inc.
DE
100%
by DCP Holdco I LLC
Digital Media Asset Holdings, LLC
DE
100%
by EMG AH LLC
Direct Holdings Americas LLC
DE
100%
by Direct Holdings U.S. LLC
Direct Holdings Customer Service Inc.
DE
100%
by Direct Holdings Americas LLC
Direct Holdings Global LLC
DE
100%
by Mosaic Media Investment Partners, LLC
Direct Holdings IP LLC
DE
100%
by Direct Holdings U.S. LLC
Direct Holdings Libraries Inc.
DE
100%
by DCP Holdco I LLC
Direct Holdings U.S. LLC
DE
100%
by Direct Holdings Global LLC
DLICT, LLC
DE
75.0%
by Eldridge Industries, LLC
DNBR Funding II, LLC
DE
100%
by Dunbarre Insurance Agency, LLC
DNBR Funding, LLC
KS
100%
by Dunbarre Insurance Agency, LLC
Do It Live LLC
DE
100%
by A24 Films LLC
Doc Lobster, LLC
CA
100%
by MRC Documentary Holdings, LLC
16
Name
Jurisdiction
Percent of Voting Securities Owned
Donkey Elephant Productions, LLC
DE
100%
by Mayfair Portfolio Trust, LLC
Dopamine Sparkle LLC
DE
100%
by A24 Films LLC
Dornwood Park,LLC
DE
100%
by Security Benefit Corporation
Double Yew LLC
DE
100%
by A24 Films LLC
DPL Financial Partners, LLC
DE
47.0%
by Eldridge DPL Holdings LLC
DS MB Holdings LLC
DE
100%
by Steamboat Portfolio Trust, LLC
DTC The Film Limited
GBR
100%
by Fulwell 73 UK Limited
Dunbarre Insurance Agency, LLC
DE
100%
by SBL Holdings, Inc.
Dynamo 1C S.a.r.l.
DE
100%
by Cain PE LLC
E10 Holdings Kft
Hungary
100%
by Buda Hills JV B.V.
E10 Project Kft
Hungary
100%
by E10 Holdings Kft
EACS II, LLC
DE
100%
by Eldridge Industries, LLC
EACS LLC
DE
100%
by Eldridge Industries, LLC
Eagle 2 Limited
GBR
100%
by Competitive Socialising Group Limited
Earhart Capital, LLC
KS
100%
by Triple8, LLC
Earth Mama LLC
DE
100%
by After The Fact LLC
Earth Mama Rights LLC
DE
100%
by A24 Films LLC
Easy Mark CDN Productions Inc
CAN
100%
by MRC II Holdings, LP
Easy Mark, LLC
CA
100%
by MRC II Holdings, LP
EBBH, LLC
DE
100%
by Eldridge Industries, LLC
EC 17th Street Holdings LLC
DE
100%
by Eldridge 17th Street Holdings LLC
EC 17th Street MezzCo LLC
DE
100%
by EC 17th Street Holdings LLC
ECD Brands Holdings LLC
DE
100%
by Eldridge 17th Street Holdings LLC
Echidna Capital LLC
DE
70.0%
by Anthony D. Minella, Individual
EDC Ag Products Company L.L.C.
OK
100%
by El Dorado Chemical Company
Eden T Entertainment Inc.
DE
100%
by Fulwell 73 Productions US, Inc.
Eden T Productions LLC
CA
100%
by Eden T Entertainment Inc.
Edgewood Portfolio Trust, LLC
DE
100%
by EPH, LLC
EEH 2017 Preferred Member, LLC
DE
100%
by SBT Investors, LLC
EEH 2017, LLC
DE
0%
Mgmt. by EEH 2017 Prefered Member, LLC
EEH 2017-AHC, LLC
DE
0%
Mgmt. by EEH 2017 Prefered Member, LLC
EEH 2017-EC, LLC
DE
100%
by EEH 2017 Prefered Member, LLC
EH2021, LLC
DE
100%
by Zinnia Corporate Holdings, LLC
EISCP Co-Invest Holdings, LLC
DE
4.18%
by Bedford Portfolio Trust, LLC
EISCP Co-Invest Holdings, LLC
DE
10.06%
by Primrose Portfolio Trust, LLC
EISCP Co-Invest Holdings, LLC
DE
85.75%
by Skylark Portfolio Trust, LLC
EKW Holdings II LLC
DE
100%
by Wanamaker Portfolio Trust, LLC
EKW Holdings III LLC
DE
100%
by Wanamaker Portfolio Trust, LLC
EKW Holdings IV LLC
DE
100%
by Wanamaker Portfolio Trust, LLC
EKW Holdings LLC
DE
100%
by Vista Portfolio Trust, LLC
EKW Holdings V LLC
DE
100%
by Carlton Portfolio Trust, LLC
El Dorado Ammonia L.L.C.
OK
100%
by El Dorado Chemical Company
El Dorado Chemical Company
OK
100%
by LSB Chemical L.L.C.
El Dorado Nitrogen L.L.C.
OK
100%
by LSB Chemical L.L.C.
Eldridge 17th Street Holdings LLC
DE
100%
by Arch Portfolio Trust, LLC
Eldridge 4AIR Holdings LLC
DE
100%
by Wanamaker Portfolio Trust, LLC
Eldridge 625 Broadway, LLC
DE
100%
by Mason Portfolio Trust, LLC
Eldridge Accelerant Funding, LLC
DE
100%
by Grove Lane Portfolio Trust, LLC
Eldridge ACZ Funding, LLC
DE
100%
by Ruby Portfolio Trust, LLC
Eldridge Aircraft Services LLC
DE
100%
by EPH II, LLC
Eldridge Alpaca Funding, LLC
DE
100%
by Steamboat Portfolio Trust, LLC
Eldridge AM Holdings, LLC
DE
100%
by Eldridge Industries, LLC
Eldridge ARK Crypto US Fund Holdings LLC
DE
100%
by Vista Portfolio Trust, LLC
17
Name
Jurisdiction
Percent of Voting Securities Owned
Eldridge Ausenco Holdings, LLC
DE
100%
by Eldridge Industries, LLC
Eldridge Ballotready Holdings LLC
DE
25.43%
by Mayfair Portfolio Trust, LLC
Eldridge BB Holdings, LLC
DE
100%
by EBBH, LLC
Eldridge BBLP, LLC
DE
100%
by Eldridge BB Holdings, LLC
Eldridge Bitkraft Funding LLC
DE
100%
by Steamboat Portfolio Trust, LLC
Eldridge Blink Holdings LLC
DE
100%
by Wanamaker Portfolio Trust, LLC
Eldridge Blockchain.com Funding LLC
DE
100%
by Maple Portfolio Trust, LLC
Eldridge Buckle Funding, LLC
DE
100%
by Primrose Portfolio Trust, LLC
Eldridge Business Services LLC
DE
99.0%
by Eldridge Corporate Services, LLC
Eldridge C9E Holdings LLC
DE
9.17%
by Steamboat Portfolio Trust, LLC
Eldridge Capital Management GP, LLC
DE
100%
by Eldridge Industries, LLC
Eldridge Capital Management Services, LLC
DE
100%
by Eldridge Capital Management, LP
Eldridge Capital Management, LP
DE
100%
by Eldridge Capital Management GP, LLC
Eldridge CEC Funding, LLC
DE
100%
by Collins Park, LLC
Eldridge CG Holdings LLC
DE
0%
Mgmt. by Eldridge CGCI, LLC
Eldridge CG Holdings LLC
DE
0%
Mgmt. by Eldridge FS Holdings, LLC
Eldridge CGCI, LLC
DE
100%
by Eldridge FS Holdings, LLC
Eldridge CH GP LLC
DE
100%
by Eldridge CH Holdings, LLC
Eldridge CH Holdings, LLC
DE
100%
by Eldridge Industries, LLC
Eldridge CH LP LLC
DE
100%
by Eldridge CH Holdings, LLC
Eldridge CI GP LLC
DE
100%
by Eldridge CI Holdings II LLC
Eldridge CI Holdings II LLC
DE
100%
by Eldridge AM Holdings, LLC
Eldridge CI LP LLC
DE
100%
by Eldridge CI Holdings II LLC
Eldridge CIC Holdings LLC
DE
17.35%
by Palmer Portfolio Trust, LLC
Eldridge CILP Funding, LLC
DE
100%
by Skylark Portfolio Trust, LLC
Eldridge CIREF Holdings, LLC
DE
0.982981%
by Collins Park, LLC
Eldridge CIREF Holdings, LLC
DE
99.017%
by Parkville Portfolio Trust, LLC
Eldridge Clark Funding, LLC
DE
100%
by Gladstone Portfolio Trust, LLC
Eldridge Clearcover Holdings LLC
DE
50.94%
by Edgewood Portfolio Trust, LLC
Eldridge Clearcover Holdings LLC
DE
49.06%
by Vista Portfolio Trust, LLC
Eldridge Cloudframe Holdings LLC
DE
100%
by Madison Portfolio Trust, LLC
Eldridge Cobalt Funding, LLC
DE
100%
by Armstrong Portfolio Trust, LLC
Eldridge Corporate Funding LLC
DE
100%
by EPH II, LLC
Eldridge Corporate Services, LLC
DE
100%
by Eldridge Industries, LLC
Eldridge CRB Funding, LLC
DE
100%
by Armstrong Portfolio Trust, LLC
Eldridge Cutover Holdings LLC
DE
100%
by Maple Portfolio Trust, LLC
Eldridge CVPF II Holdings, LLC
DE
100%
by Pinecrest Portfolio Trust, LLC
Eldridge Dataminr Holdings LLC
DE
100%
by Bruce Park Portfolio Trust, LLC
Eldridge Dayglo Funding, LLC
DE
100%
by Ruby Portfolio Trust, LLC
Eldridge DBDK Funding, LLC
DE
100%
by Vista Portfolio Trust, LLC
Eldridge DBZ Holdings, LLC
DE
100%
by Parkville Portfolio Trust, LLC
Eldridge Digital Asset Holdings, LLC
DE
100%
by Bruce Park Portfolio Trust, LLC
Eldridge Diplomat Holdings, LLC
DE
100%
by Wanamaker Portfolio Trust, LLC
Eldridge DK Holdings LLC
DE
20.0%
by Bruce Park Portfolio Trust, LLC
Eldridge DK Holdings LLC
DE
40.0%
by Steamboat Portfolio Trust, LLC
Eldridge DK Holdings, LLC
DE
20.0%
by Armstrong Portfolio Trust, LLC
Eldridge DK Holdings, LLC
DE
20.0%
by Vista Portfolio Trust, LLC
Eldridge DK II, LLC
DE
100%
by Mayfair Portfolio Trust, LLC
Eldridge DK, LLC
DE
100%
by Eldridge DK Holdings, LLC
Eldridge DMO, LLC
DE
100%
by Wanamaker Portfolio Trust, LLC
Eldridge DPL Holdings LLC
DE
58.88%
by Arch Portfolio Trust, LLC
Eldridge DPL Holdings LLC
DE
41.12%
by Canon Portfolio Trust, LLC
Eldridge DTS Funding, LLC
DE
100%
by Maple Portfolio Trust, LLC
18
Name
Jurisdiction
Percent of Voting Securities Owned
Eldridge EA Holdings, LLC
DE
84.5%
by SBT Investors, LLC
Eldridge Ediphy Holdings, LLC
DE
100%
by Bruce Park Portfolio Trust, LLC
Eldridge ELO Funding LLC
DE
100%
by Mason Portfolio Trust, LLC
Eldridge Equine Holdings LLC
DE
100%
by Wanamaker Portfolio Trust, LLC
Eldridge Equine II Holdings LLC
DE
64.64%
by Grigg Portfolio Trust, LLC
Eldridge Equine II Holdings LLC
DE
35.36%
by Wanamaker Portfolio Trust, LLC
Eldridge Equipment Finance LLC
DE
100%
by EPH, LLC
Eldridge Esports Funding II LLC
DE
100%
by Wanamaker Portfolio Trust, LLC
Eldridge Esports One Funding LLC
DE
100%
by Steamboat Portfolio Trust, LLC
Eldridge EVE Holdings LLC
DE
1.91%
by Canon Portfolio Trust, LLC
Eldridge Executive Services LLC
DE
99.0%
by Eldridge Corporate Services, LLC
Eldridge FEG Holdings
DE
100%
by Steamboat Portfolio Trust, LLC
Eldridge Fevo Funding, LLC
DE
100%
by Carlton Portfolio Trust, LLC
Eldridge FGNY Holdings, LLC
DE
100%
by Eldridge Industries, LLC
Eldridge FS Holdings, LLC
DE
100%
by Eldridge Industries, LLC
Eldridge Fulwell 73 Holdings LLC
DE
1.91%
by Canon Portfolio Trust, LLC
Eldridge Gaming 247 Funding LLC
DE
100%
by Wanamaker Portfolio Trust, LLC
Eldridge Gamma Holdings, LLC
DE
74.56%
by Flint Rock Portfolio Trust, LLC
Eldridge Gamma Holdings, LLC
DE
25.43%
by Mayfair Portfolio Trust, LLC
Eldridge G-Form Holdings LLC
DE
100%
by Mayfair Portfolio Trust, LLC
Eldridge Gizer Funding LLC
DE
100%
by Maple Portfolio Trust, LLC
Eldridge goPuff Holdings LLC
DE
11.43%
by Bruce Park Portfolio Trust, LLC
Eldridge goPuff Holdings LLC
DE
88.57%
by Palmer Portfolio Trust, LLC
Eldridge GP 1 SEF Holdings, LLC
DE
100%
by Eldridge Industries, LLC
Eldridge Happy Money Funding LLC
DE
100%
by Canon Portfolio Trust, LLC
Eldridge HBF II Holdings, LLC
DE
100%
by Ruby Portfolio Trust, LLC
Eldridge HCC Investor LLC
DE
100%
by PD Holdings LLC
Eldridge HCC, LLC
DE
100%
by Eldridge HCC Investor LLC
Eldridge HI Funding, LLC
DE
100%
by Gladstone Portfolio Trust, LLC
Eldridge HIFI Funding, LLC
DE
100%
by Madison Portfolio Trust, LLC
Eldridge HIP I-15 Holdings LLC
DE
25.43%
by Mayfair Portfolio Trust, LLC
Eldridge HIP Riverport Holdings LLC
DE
25.43%
by Mayfair Portfolio Trust, LLC
Eldridge HIP Ventures, LLC
DE
100%
by Mayfair Portfolio Trust, LLC
Eldridge HNSF V Holdings, LLC
DE
100%
by Ruby Portfolio Trust, LLC
Eldridge Homodeus Funding LLC
DE
100%
by Vista Portfolio Trust, LLC
Eldridge HSCM Holdings, LLC
DE
100%
by Jefferson Square 1892, LLC
Eldridge HSCMV 2 Holdings LLC
DE
100%
by Ruby Portfolio Trust, LLC
Eldridge HZACS LLC
DE
100%
by Eldridge Industries, LLC
Eldridge IE Funding LLC
DE
37.31%
by Bedford Portfolio Trust, LLC
Eldridge IE Funding LLC
DE
11.62%
by Flint Rock Portfolio Trust, LLC
Eldridge IE Funding LLC
DE
51.07%
by Pinecrest Portfolio Trust, LLC
Eldridge Industries, LLC
DE
2.1%
by Bilbao-KCI, LLC
Eldridge Industries, LLC
DE
0%
by Echidna Capital LLC
Eldridge Industries, LLC
DE
5.6%
by EEH 2017-EC, LLC
Eldridge Industries, LLC
DE
87.5%
by SBT Investors, LLC
Eldridge IP Holdings II LLC
DE
100%
by Eldridge Industries, LLC
Eldridge IP Holdings LLC
DE
100%
by Eldridge IP Holdings II LLC
Eldridge IPS Holdings, LLC
DE
17.35%
by Palmer Portfolio Trust, LLC
Eldridge Kamerra Funding, LLC
DE
100%
by Arch Portfolio Trust, LLC
Eldridge Kindbody Holdings LLC
DE
1.91%
by Canon Portfolio Trust, LLC
Eldridge Koho Funding, LLC
DE
100%
by Carlton Portfolio Trust, LLC
Eldridge KRNL Funding LLC
DE
100%
by Putnam Asset Holdings, LLC
Eldridge LAD Holdings, LLC
DE
1.0%
by Eldridge Industries, LLC
19
Name
Jurisdiction
Percent of Voting Securities Owned
Eldridge LAD Holdings, LLC
DE
99.0%
by SBC LAD Holdings, LLC
Eldridge Laylo Holdings LLC
DE
100%
by Armstrong Portfolio Trust, LLC
Eldridge LC Funding LLC
DE
100%
by Edgewood Portfolio Trust, LLC
Eldridge LPC Funding, LLC
DE
100%
by Primrose Portfolio Trust, LLC
Eldridge Lynx Funding LLC
DE
100%
by Oakridge Portfolio Trust, LLC
Eldridge Maranon Holdings, LLC
DE
100%
by Eldridge AM Holdings, LLC
Eldridge MasterClass Holdings LLC
DE
100%
by Madison Portfolio Trust, LLC
Eldridge Media Group, LLC
DE
1.0%
by DCP Holdco I LLC
Eldridge Media Group, LLC
DE
99.0%
by Eldridge Media Holdings, LLC
Eldridge Media Holdings, LLC
DE
58.67%
by Ridge Media Holdings, LLC
Eldridge MetroTech Holdings, LLC
DE
100%
by Armstrong Portfolio Trust, LLC
Eldridge Mojo Funding, LLC
DE
100%
by Edgewood Portfolio Trust, LLC
Eldridge Netomi Holdings LLC
DE
100%
by Bedford Portfolio Trust, LLC
Eldridge NFG Holdings, LLC
DE
100%
by Eldridge Industries, LLC
Eldridge Odyssey Holdings, LLC
DE
100%
by Grove Lane Portfolio Trust, LLC
Eldridge OOSTO Holdings, LLC
DE
7.93%
by Canon Portfolio Trust, LLC
Eldridge OOSTO Holdings, LLC
DE
92.07%
by Vista Portfolio Trust, LLC
Eldridge PayActiv Holdings LLC
DE
12.68%
by Canon Portfolio Trust, LLC
Eldridge PayActiv Holdings LLC
DE
9.66%
by Edgewood Portfolio Trust, LLC
Eldridge PayActiv Holdings LLC
DE
2.42%
by Madison Portfolio Trust, LLC
Eldridge PayActiv Holdings LLC
DE
12.08%
by Maple Portfolio Trust, LLC
Eldridge PayActiv Holdings LLC
DE
6.64%
by Mason Portfolio Trust, LLC
Eldridge PayActiv Holdings LLC
DE
56.53%
by Oakridge Portfolio Trust, LLC
Eldridge PCH Holdings, LLC
DE
100%
by Vista Portfolio Trust, LLC
Eldridge PIPE Holdings II, LLC
DE
39.91%
by Arch Portfolio Trust, LLC
Eldridge PIPE Holdings II, LLC
DE
17.35%
by Palmer Portfolio Trust, LLC
Eldridge PIPE Holdings II, LLC
DE
42.74%
by Steamboat Portfolio Trust, LLC
Eldridge PIPE Holdings, LLC
DE
100%
by Eldridge PIPE Holdings II, LLC
Eldridge Pixion Funding LLC
DE
100%
by Wanamaker Portfolio Trust, LLC
Eldridge Powerboard Holdings LLC
DE
100%
by Madison Portfolio Trust, LLC
Eldridge PPRO Holdings LLC
DE
100%
by Maple Portfolio Trust, LLC
Eldridge PVIII Holdings LLC
DE
92.07%
by Vista Portfolio Trust, LLC
Eldridge Qloo Holdings LLC
DE
100%
by Bedford Portfolio Trust, LLC
Eldridge QuantaDT Holdings LLC
DE
100%
by Putnam Asset Holdings, LLC
Eldridge RBUSA Holdings LLC
DE
30.87%
by Armstrong Portfolio Trust, LLC
Eldridge RBUSA Holdings LLC
DE
1.91%
by Canon Portfolio Trust, LLC
Eldridge RBUSA Holdings LLC
DE
9.53%
by Note Funding 1892-2, LLC
Eldridge RBUSA Holdings LLC
DE
9.17%
by Steamboat Portfolio Trust, LLC
Eldridge RBUSA Holdings LLC
DE
48.52%
by Wanamaker Portfolio Trust, LLC
Eldridge RDCP II Holdings, LLC
DE
100%
by Armstrong Portfolio Trust, LLC
Eldridge RDE Holdings, LLC
DE
100%
by Wanamaker Portfolio Trust, LLC
Eldridge Resilience Holdings LLC
DE
100%
by Bruce Park Portfolio Trust, LLC
Eldridge ROS Holdings LLC
DE
100%
by Carlton Portfolio Trust, LLC
Eldridge Route Funding, LLC
DE
100%
by Morningside Portfolio Trust, LLC
Eldridge S3-R Holdings LLC
DE
100%
by Pinecrest Portfolio Trust, LLC
Eldridge SamCart Funding, LLC
DE
100%
by Pinecrest Portfolio Trust, LLC
Eldridge SBC Holdings LLC
DE
100%
by Eldridge Industries, LLC
Eldridge SCIH Holdings LLC
DE
25.43%
by Mayfair Portfolio Trust, LLC
Eldridge SCIH-P Holdings LLC
DE
100%
by Putnam Asset Holdings, LLC
Eldridge SCIH-S Holdings LLC
DE
100%
by Ruby Portfolio Trust, LLC
Eldridge SCOF II Holdings LLC
DE
100%
by Pinecrest Portfolio Trust, LLC
Eldridge Scopely Holdings LLC
DE
100%
by Holliday Park, LLC
Eldridge SCPH Investor II LLC
DE
100%
by Jefferson Square 1892, LLC
20
Name
Jurisdiction
Percent of Voting Securities Owned
Eldridge SCPH Investor LLC
DE
100%
by Mason Portfolio Trust, LLC
Eldridge SCPH, LLC
DE
3.06%
by Eldridge SCPH Investor LLC
Eldridge SCPH, LLC
DE
46.94%
by Eldridge SCPH Investor II LLC
Eldridge Services Incorporated
DE
100%
by Eldridge Corporate Services, LLC
Eldridge SFLY Funding, LLC
DE
100%
by Potwin Place, LLC
Eldridge SHDG Holdings LLC
DE
100%
by Potwin Place, LLC
Eldridge SkyHive Holdings LLC
DE
100%
by Primrose Portfolio Trust, LLC
Eldridge SLCF IV Holdings LLC
DE
92.07%
by Vista Portfolio Trust, LLC
Eldridge SLG Holdings, LLC
DE
100%
by Steamboat Portfolio Trust, LLC
Eldridge SMH Co-Invest Holdings LLC
DE
100%
by Ruby Portfolio Trust, LLC
Eldridge SMT Holdings LLC
DE
9.17%
by Steamboat Portfolio Trust, LLC
Eldridge Snap! Holdings LLC
DE
90.0%
by Oakridge Portfolio Trust, LLC
Eldridge SpotOn Funding, LLC
DE
100%
by Carlton Portfolio Trust, LLC
Eldridge Stash Funding LLC
DE
100%
by Maple Portfolio Trust, LLC
Eldridge Stucki Holdings, LLC
DE
100%
by Gladstone Portfolio Trust, LLC
Eldridge Tax Services Inc.
DE
100%
by Eldridge Business Services LLC
Eldridge TF Holdings LLC
DE
100%
by Wanamaker Portfolio Trust, LLC
Eldridge Tripledot Holdings LLC
DE
100%
by Maple Portfolio Trust, LLC
Eldridge Truebill Funding, LLC
DE
20.0%
by Armstrong Portfolio Trust, LLC
Eldridge Truebill Funding, LLC
DE
80.0%
by Mason Portfolio Trust, LLC
Eldridge TTV VI Funding, LLC
DE
100%
by Armstrong Portfolio Trust, LLC
Eldridge TTV-GL Holdings LLC
DE
92.07%
by Vista Portfolio Trust, LLC
Eldridge Tuvoli Holdings LLC
DE
100%
by Wanamaker Portfolio Trust, LLC
Eldridge Unqork Holdings LLC
DE
70.0%
by Maple Portfolio Trust, LLC
Eldridge Util Holdings, LLC
DE
100%
by Carlton Portfolio Trust, LLC
Eldridge VG Funding, LLC
DE
50.25%
by Flint Rock Portfolio Trust, LLC
Eldridge VG Funding, LLC
DE
49.75%
by Weaver Portfolio Trust, LLC
Eldridge Viral Nation Holdings LLC
DE
100%
by Bedford Portfolio Trust, LLC
Eldridge Viral Nation Purchaseco Ltd.
CAN
100%
by Eldridge Viral Nation Holdings LLC
Eldridge VM Holdings LLC
DE
100%
by Bedford Portfolio Trust, LLC
Eldridge VS, LLC
DE
100%
by Mayfair Portfolio Trust, LLC
Eldridge Wellthy Funding LLC
DE
100%
by Canon Portfolio Trust, LLC
Eli Entertainment Inc.
DE
100%
by Fulwell 73 Productions US, Inc.
Eli Entertainment LLC
CA
100%
by Eli Entertainment Inc.
Elia Management LLC
DE
100%
by A24 Films LLC
Elia Services LLC
DE
100%
by A24 Films LLC
Elliott Bay Parent LLC
DE
100%
by Mason Portfolio Trust, LLC
Elm Portfolio Trust LLC
DE
100%
by EPH II, LLC
Elo Entertainment Inc.
DE
28.0%
by Eldridge ELO Funding LLC
EMG AH LLC
DE
99.0%
by Eldridge Media Group, LLC
EMG HoldCo, LLC
DE
0%
Mgmt. by Eldridge Media Holdings, LLC
EMH AH LLC
DE
100%
by EMH II, LLC
EMH II, LLC
DE
100%
by Eldridge Media Holdings, LLC
EMH-PME Holdings, LLC
DE
100%
by Valence Media, LLC
EMH-PME LLC
DE
100%
by Eldridge Media Group, LLC
EMO Holdings, LLC
DE
0%
Mgmt. by EEH 2017 Prefered Member, LLC
Empty Suit, LLC
CA
100%
by MRC II Holdings, LP
Endless Encore LLC
DE
100%
by A24 Films LLC
EPH Holdings II, LLC
DE
100%
by Eldridge Industries, LLC
EPH Holdings, LLC
DE
100%
by EPH Holdings II, LLC
EPH II, LLC
DE
100%
by EPH Holdings, LLC
EPH, LLC
DE
100%
by EPH II, LLC
Epic Aero, Inc.
DE
100%
by Flexjet, Inc.
21
Name
Jurisdiction
Percent of Voting Securities Owned
Epic Preferred Holdings II LLC
DE
10.78996%
by Brookville Industries, LLC
Epic Preferred Holdings II LLC
DE
1.66104%
by Gladstone Portfolio Trust, LLC
Epic Preferred Holdings II LLC
DE
13.744%
by Hillcrest Holdings, LLC
Epic Preferred Holdings II LLC
DE
12.451%
by Monterey Portfolio Trust, LLC
Epic Preferred Holdings II LLC
DE
32.43%
by PD Holdings LLC
Epic Preferred Holdings II LLC
DE
23.321%
by Quinton Heights, LLC
Epic Preferred Holdings II LLC
DE
5.603%
by Ravenwood Portfolio Trust, LLC
Epic Preferred Holdings LLC
DE
48.77%
by Arch Portfolio Trust, LLC
Epic Preferred Holdings LLC
DE
2.22%
by Edgewood Portfolio Trust, LLC
Epic Preferred Holdings LLC
DE
8.1%
by Flint Rock Portfolio Trust, LLC
Epic Preferred Holdings LLC
DE
16.2%
by Madison Portfolio Trust, LLC
Epic Preferred Holdings LLC
DE
9.95%
by Mayfair Portfolio Trust, LLC
Epic Preferred Holdings LLC
DE
5.94%
by Primrose Portfolio Trust, LLC
Epic Preferred Holdings LLC
DE
8.83%
by Putnam Asset Holdings, LLC
Epic Preferred, LLC
DE
100%
by Epic Preferred Holdings LLC
ESL The Film Limited
GBR
100%
by Fulwell 73 UK Limited
Eternal Springs Productions LLC
NY
100%
by MRC II Holdings, LP
Everest Fuel Management, LLC
DE
100%
by Tuvoli, LLC
Everly Holdings, LLC
DE
100%
by SBL Holdings, Inc.
Everly Incentive Plan, LLC
DE
100%
by Everly Holdings, LLC
Everly Life Insurance Company
WI
100%
by Everly Holdings, LLC
Everly, LLC
KS
100%
by Everly Holdings, LLC
F73 Awards Inc.
DE
100%
by Fulwell 73 Productions US, Inc.
F73 Productions Limited
GBR
100%
by Fulwell 73 Limited
Faces Off LLC
DE
100%
by After The Fact LLC
Faces Off Rights LLC
DE
100%
by A24 Films LLC
Fairchild Place Ltd
GBR
100%
by The Stage Shoreditch (Master) Unit Trust
Fairgrave Omlie, LLC
OH
100%
by One Sky Flight, LLC
False Positive LLC
DE
100%
by After The Fact LLC
Family Secret Productions, Inc.
DE
100%
by DCP Holdco I LLC
Fang Shui, LLC
DE
100%
by MRC II Holdings, LP
Farah Film Limited
GBR
100%
by Fulwell 73 UK Limited
FC Virginia Soccer Club LLC
VA
100%
by Cain International LP
Fear Farm Holdings, LLC
AZ
100%
by 13 FEG Haunted Holdings, LLC
Fever Lake LLC
LA
100%
by After The Fact LLC
Fevo Czech s.r.o.
Czech
Republic
100%
by Fevo, Inc.
Fevo d.o.o. Beograd
Serbia
100%
by Fevo, Inc.
Fevo, Inc.
DE
20.19%
by Wanamaker Portfolio Trust, LLC
FGC 101 Maiden, LLC
NY
100%
by Fields GC, LLC
FGC 148 Madison, LLC
NY
100%
by Fields GC, LLC
FGC 24 E12, LLC
DE
100%
by Fields GC, LLC
FGC 275 Madison, LLC
NY
100%
by Fields GC, LLC
FGC 304 PAS, LLC
NY
100%
by Fields GC, LLC
FGC 599 Lexington, LLC
NY
100%
by Fields GC, LLC
FGNY ParentCo Holdings, LLC
DE
100%
by Eldridge FGNY Holdings, LLC
FHI Holdings LLC
DE
50.1%
by FHI Investor, LLC
FHI Investor, LLC
DE
100%
by Security Benefit Life Insurance Company
Field Point Portfolio Trust, LLC
DE
100%
by Eldridge Industries, LLC
Fields GC, LLC
NY
56.0%
by Aurify Brands, LLC
Film Expo Group Holdings LLC
DE
85.7%
by Eldridge FEG Holdings LLC
Film Expo Group Intermediate Holdings, LLC
DE
100%
by Film Expo Group Holdings LLC
Film Expo Group LLC
DE
99.0%
by Film Expo Group Holdings LLC
22
Name
Jurisdiction
Percent of Voting Securities Owned
FilmNation Partners, LLC
DE
20.2%
by MRC II Distribution Company, L.P.
First Security Benefit Life Insurance and Annuity
Company of New York
NY
100%
by SBL Holdings, Inc.
Fish Tacos NY 1, LLC
NY
61.6%
by Aurify Fish Tacos Holdings, LLC
Flexjet Limited
GBR
100%
by One Sky Flight, LLC
Flexjet Malta Holdings Limited
Malta
100%
by Volare Acquisitions, Limited
Flexjet Malta Operations Limited
Malta
100%
by Flexjet Malta Holdings Limited
Flexjet Operations Ltd.
GBR
100%
by Volare Acquisitions, Limited
Flexjet Vertical Lift, LLC
DE
100%
by One Sky Flight, LLC
Flexjet, Inc.
DE
5.55%
by Big Springs, LLC
Flexjet, Inc.
DE
16.84%
by Eldridge EA Holdings, LLC
Flexjet, Inc.
DE
7.4%
by Epic Preferred Holdings II LLC
Flexjet, Inc.
DE
3.66%
by Epic Preferred Holdings LLC
Flexjet, LLC
GBR
100%
by One Sky Flight, LLC
Flight Options, LLC
DE
100%
by One Sky Flight, LLC
Flint Rock Portfolio Trust, LLC
DE
100%
by EPH, LLC
Flip the Script, LLC
DE
100%
by Sugar23, Inc.
Flower Power Cruise 18 LLC
DE
100%
by StarVista Live LLC
Flower Power Cruise 19 LLC
DE
100%
by StarVista Live LLC
Flower Power Cruise 20 LLC
DE
100%
by StarVista Live LLC
Flower Power Cruise 23 LLC
DE
100%
by StarVista Live LLC
Flower Power Cruise Fall 21 LLC
DE
100%
by StarVista Live LLC
Flower Power Cruise Spring 21 LLC
DE
100%
by StarVista Live LLC
Foot Slap LLC
DE
100%
by A24 Films LLC
Foot Slap Rights LLC
DE
100%
by A24 Films LLC
Fort Pruf Rock Mezz LLC
DE
100%
by Fort Rock Pruf Parent LLC
Fort Rock Pruf Parent LLC
DE
50.00%
by CI FLL Holdings, LLC
Fort Rock Pruf Trustee LLC
DE
100%
by Fort Pruf Rock Mezz LLC
Fortwell Capital Limited
GBR
95.0%
by CI AM UK Holdings Limited
Four Towers Limited
GBR
100%
by Fulwell 73 Limited
Fox River Investments, LLC
DE
100%
by Spoon River Investments, LLC
FPR 1 Member LLC
DE
100%
by Fort Rock Pruf Parent LLC
FPR Investor LLC
DE
100%
by FPR 1 Member LLC
FPR US 1 LLC
DE
100%
by Fort Rock Pruf Parent LLC
Free State Funding, LLC
KS
100%
by Sherwood Park, Inc.
FreezeCorp LLC
DE
100%
by A24 Films LLC
FreezeCorp Rights LLC
DE
100%
by A24 Films LLC
Frimpse Film Productions Ltd
CAN
100%
by Frimpse LLC
Frimpse LLC
CA
100%
by MRC II Holdings, LP
Froome Film Limited
GBR
100%
by Fulwell 73 UK Limited
Fulwell 73 Holdco Limited
GBR
32.0%
by Valence FW73, LLC
Fulwell 73 IDC Holdings, Inc
DE
100%
by Fulwell 73 Holdco Limited
Fulwell 73 IDC, LLC
CA
100%
by Fulwell 73 IDC Holdings, Inc
Fulwell 73 Limited
GBR
100%
by Fulwell 73 Holdco Limited
Fulwell 73 LUK Limited
GBR
100%
by Fulwell 73 Holdco Limited
Fulwell 73 Productions US, Inc.
DE
100%
by Fulwell 73 UK Limited
Fulwell 73 Project Q, LLC
Qatar
100%
by Fulwell 73 UK Limited
Fulwell 73 UK Limited
GBR
100%
by Fulwell 73 Holdco Limited
Fulwell Cain Studios Limited
GBR
100%
by CI SF Holdings Limited
Fulwell Music Limited
GBR
100%
by Fulwell 73 Limited
Future Autumn LLC
DE
100%
by After The Fact LLC
FX Leasing, LLC
DE
100%
by SCF Aviation Capital LLC
FX Notes LLC
DE
100%
by SCF Aviation Capital LLC
23
Name
Jurisdiction
Percent of Voting Securities Owned
FXSolutions, LLC
DE
100%
by One Sky Flight, LLC
Galinda Park, LLC
DE
100%
by Security Benefit Corporation
Galliard Developments Ltd
GBR
100%
by GDL Holdco Limited
Galliard Group Limited
GBR
10.3%
by CI GGL Limited
Galliard Holdings Ltd
GBR
100%
by Galliard Group Limited
Gaming 247, Inc.
DE
13.9%
by Eldridge Gaming 247 Funding LLC
Gamma Media Holdings UK LTD
UK
100%
by Gamma Media Holdings, LLC
Gamma Media Holdings, LLC
DE
89.19%
by Eldridge Gamma Holdings, LLC
Garfield Park, LLC
KS
100%
by Sherwood Park, Inc.
GC Rights LLC
DE
100%
by A24 Films LLC
GDL (Millharbour) Ltd
GBR
100%
by Galliard Developments Ltd
GDL (Romford) Limited
GBR
100%
by Galliard Developments Ltd
GDL (TCRW) Limited
GBR
100%
by Galliard Developments Ltd
GDL (Tower Bridge Road) Limited
GBR
70.0%
by Galliard Developments Ltd
GDL Holdco Limited
GBR
0%
Board rights held by CH Capital A Holdings LLc
GEC Finance, LLC
DE
100%
by Eldridge Industries, LLC
Generate Entertainment, LLC
DE
100%
by DCP Holdings DE, LLC
Gennessee Insurance Agency, LLC
DE
100%
by SBL Holdings, Inc.
G-Form Incentive Plan, LLC
DE
100%
by Eldridge G-Form Holdings LLC
G-Form, LLC
RI
23.5%
by Wanamaker Portfolio Trust, LLC
GIV-X 4098, LLC
DE
100%
by Air Eldridge LLC
Gizer Inc.
DE
26.23%
by Eldridge Gizer Funding LLC
Gladstone Portfolio Trust, LLC
DE
100%
by Dayton Funding, LLC
Glow Holdings, LLC
DE
100%
by Pumpkin Fest Holdings, LLC
GLT Private Alts Fund I, L.P.
DE
0%
Mgmt. by CAIS GLT Private Alts Fund I GP LLC
Golden Dragons, LLC
CA
100%
by MRC II Holdings, LP
Golden Globes Holdings, LLC
DE
33.3%
by EMH-PME LLC
Golden Globes, LLC
DE
60.0%
by Golden Globes Holdings, LLC
Got a Little Sloppy LLC
DE
100%
by A24 Films LLC
GRE Austin, LLC
DE
100%
by Great Room Escape, LLC
GRE Chicago, LLC
DE
100%
by Great Room Escape, LLC
GRE Cincinnati, LLC
DE
100%
by Great Room Escape, LLC
GRE Cleveland, LLC
DE
100%
by Great Room Escape, LLC
GRE Columbus, LLC
OH
100%
by Great Room Escape, LLC
GRE Dallas, LLC
DE
100%
by Great Room Escape, LLC
GRE Denver, LLC
DE
100%
by Great Room Escape, LLC
GRE Houston, LLC
TX
100%
by Great Room Escape, LLC
GRE Jacksonville, LLC
FL
100%
by Great Room Escape, LLC
GRE Nashville, LLC
TN
100%
by Great Room Escape, LLC
GRE San Antonio, LLC
DE
100%
by Great Room Escape, LLC
GRE Tempe, LLC
DE
100%
by Great Room Escape, LLC
Great Green Room, LLC
CA
100%
by MRC II Holdings, LP
Great Room Escape, LLC
CO
100%
by 13FEG Ops, LLC
Greatest Night, LLC
CA
100%
by MRC Documentary, L.P.
Grigg Portfolio Trust, LLC
DE
100%
by EPH, LLC
Grove Lane Portfolio Trust, LLC
DE
100%
by EPH, LLC
GS BTS Limited
GBR
100%
by Fulwell 73 UK Limited
GS TV Productions Ltd
GBR
50.0%
by Fulwell 73 UK Limited
Guacamole Airlines LLC
DE
100%
by A24 Films LLC
Gun & Radio, LLC
CA
100%
by MRC Documentary, L.P.
GV 667, LLC
DE
100%
by Air Eldridge LLC
GVI 6274, LLC
DE
100%
by Air Eldridge LLC
GYKIT, LLC
CA
100%
by MRC Documentary Holdings, LLC
24
Name
Jurisdiction
Percent of Voting Securities Owned
H of A Production Limited
GBR
100%
by Fulwell 73 Limited
Halfnelson Films UK Limited
GBR
100%
by MRC II Holdings, LP
Halfnelson Films, LLC
CA
100%
by MRC II Holdings, LP
Halo Aviation Ltd.
GBR
100%
by Flexjet Operations Ltd.
Harsh Times, LLC
DE
30.0%
by MRC Investments, LLC
Hawk Trail, LLC
DE
100%
by Security Benefit Life Insurance Company
Hibernation Season Inc.
CAN
100%
by A24 Films LLC
High Roller Productions LLC
CA
100%
by MRC II Holdings, LP
Highland Peak Asset Holdings, LLC
DE
100%
by Highland Peak Trust
Highland Peak FA Holdings, LLC
NJ
100%
by Highland Peak Trust
Hillcrest Holdings, LLC
KS
100%
by Dayton Funding, LLC
HM DevCo Limited
GBR
100%
by Honey Monster Limited
HME Holdings, LLC
DE
100%
by HME Investors, LLC
HME Investors, LLC
DE
100%
by Eldridge Industries, LLC
HNW Investors, LLC
KS
100%
by SBL Holdings, Inc.
Holliday Park, LLC
KS
100%
by Dayton Funding, LLC
Honey Monster Limited
GBR
100%
by CI HM InvestCo Limited
HoneyMonster HoldCo 1 Limited
GBR
100%
by Honey Monster Limited
HoneyMonster HoldCo 2 Limited
GBR
100%
by HoneyMonster HoldCo 1 Limited
Horizon Sponsor, LLC
DE
30.33%
by Eldridge HZACS LLC
Hot Costs LLC
DE
100%
by A24 Films LLC
Hot Sauce LLC
CA
100%
by MRC II Holdings, LP
House Claw LLC
LA
100%
by After The Fact LLC
House Claw Rights LLC
DE
100%
by A24 Films LLC
House of Torment LLC
TX
100%
by 13 FEG Haunted Holdings, LLC
Hungry City, LLC
DE
100%
by MRC II Holdings, LP
Hypercolor, LLC
CA
100%
by MRC II Holdings, LP
Hyphen Hyphen LLC
DE
100%
by After The Fact LLC
HZACS CI, LLC
DE
0%
Mgmt. by Eldridge HZACS LLC
Ibiza 87 Limited
GBR
100%
by Fulwell 73 Limited
IDF V, LLC
DE
100%
by Security Benefit Life Insurance Company
IDF VI, LLC
DE
100%
by Security Benefit Life Insurance Company
Imatech Technologies LLC
DE
100%
by A24 Films LLC
Industry Standard Pictures LLC
DE
100%
by A24 Films LLC
Ivory Fort, LLC
KS
100%
by Security Benefit Corporation
Jampurchaseco Limited
GBR
100%
by Cain PE LLC
Jazz Hands Motion Picture Group LLC
DE
100%
by A24 Films LLC
Jefferson Remark Funding LLC
DE
100%
by Jefferson Square 1892, LLC
Jefferson Square 1892, LLC
DE
100%
by Dayton Funding, LLC
JetCorp Technical Services, Inc.
MO
100%
by Fairgrave Omlie, LLC
JJ Concepts Limited
GBR
50.0%
by Jampurchaseco Limited
JJ ISQ Limited
GBR
100%
by JJ Concepts Limited
Joe Cross For Mayor LLC
DE
100%
by A24 Films LLC
Joe Cross For Mayor Rights LLC
DE
100%
by A24 Films LLC
Jola20, LLC
DE
0%
Mgmt. by EEH 2017 Prefered Member, LLC
JP Initiative, LLC
DE
100%
by Eldridge Business Services LLC
Jubilee Scripted Limited
GBR
100%
by Fulwell 73 UK Limited
Juno Albatros, S.L.U.
Spain
100%
by Juno Holdings Spain 1, S.L.U.
Juno CB 1, S.L.U.
Spain
100%
by Juno Holdings Spain 2, S.L.U.
Juno Corn, S.L.U.
Spain
100%
by Juno Holdings Spain 1, S.L.U.
Juno EURO, S.L.U.
Spain
100%
by Juno Holdings Spain 1, S.L.U.
Juno Holdings Lux 2 S.a.r.l
LUX
100%
by Juno Holdings Lux I S.a.r.l
Juno Holdings Lux 3 S.a.r.l.
LUX
100%
by Juno Holdings Lux I S.a.r.l
25
Name
Jurisdiction
Percent of Voting Securities Owned
Juno Holdings Lux I S.a.r.l
LUX
95.0%
by Juno Holdings Lux Sarl
Juno Holdings Lux M Sarl
LUX
100%
by Juno Holdings Lux Sarl
Juno Holdings Lux Sarl
LUX
100%
by CIEF1 UK Holdings Limited
Juno Holdings Spain 1, S.L.U.
Spain
100%
by Juno Holdings Lux 2 S.a.r.l
Juno Holdings Spain 2, S.L.U.
Spain
100%
by Juno Holdings Lux 3 S.a.r.l.
Juno Mini, S.L.U.
Spain
100%
by Juno Holdings Spain 1, S.L.U.
Juno Munt, S.L.U.
Spain
100%
by Juno Holdings Spain 1, S.L.U.
Juno Plan, S.L.U.
Spain
100%
by Juno Holdings Spain 1, S.L.U.
Kaw Valley Capital, LLC
DE
100%
by Security Benefit Corporation
Keep Spitballing LLC
DE
100%
by A24 Films LLC
Keshet/dcp LLC
DE
50.0%
by PME-DCP HoldCo, LLC
KMA Gems LLC
DE
100%
by After The Fact LLC
Knight Takes King Productions, LLC
DE
100%
by MRC II Holdings, LP
Knoema Corporation
DE
100%
by Knoema Holdings, LLC
Knoema Holdings, LLC
DE
82.16%
by SB Knoema Holdings, LLC
Knoema IT Solutions India Private Limited
India
100%
by Knoema Corporation
Koryfeum GmbH
LUX
50.0%
by CI Koryfeum Sarl
Krakow Office Park B.V.
Netherlands
90.0%
by CIEF1 UK Holdings Limited
Kurkamart LLC
DE
100%
by A24 Films LLC
KWCI GP
Ireland
50.0%
by Cain International European Real Estate
Opportunity Fund I GP Limited
KWCI LP
NJ
50.0%
by CI CB3 Subfund
KWSB Real Estate Venture I, LLC
DE
80.0%
by EKW Holdings LLC
KWSB Real Estate Venture II, LLC
DE
80.0%
by EKW Holdings II LLC
KWSB Real Estate Venture III, LLC
DE
80.0%
by EKW Holdings III LLC
KWSB Real Estate Venture IV, LLC
DE
80.0%
by EKW Holdings IV LLC
Last Rider Productions UK Limited
GBR
100%
by MRC Documentary, L.P.
Last Rider Productions, LLC
CA
100%
by MRC Documentary, L.P.
LB 1140 Broadway, LLC
NY
100%
by Little Beet, LLC
LB 125 Park, LLC
NY
100%
by Little Beet, LLC
LB 1291 First Avenue, LLC
DE
100%
by Little Beet, LLC
LB 148 Madison, LLC
NY
100%
by Little Beet, LLC
LB 320 Park, LLC
NY
100%
by Little Beet, LLC
LB Bryant Park, LLC
NY
100%
by Little Beet, LLC
LB City Vista, LLC
DE
100%
by Little Beet, LLC
LB Newport Center, LLC
NY
100%
by Little Beet, LLC
LB Roosevelt Field, LLC
NY
100%
by Little Beet, LLC
LB Sub W50, LLC
NY
100%
by LB W50, LLC
LB W50, LLC
NY
100%
by Little Beet, LLC
LB Westchester, LLC
NY
100%
by Little Beet, LLC
LB Westport, LLC
DE
100%
by Little Beet, LLC
Leadoff Investments, LLC
DE
100%
by SBT Investors, LLC
Legs Film Rights LLC
DE
100%
by A24 Films LLC
Lenox Portfolio Trust, LLC
DE
100%
by Dayton Funding, LLC
Life is Beautiful Holdings, LLC
DE
32.32%
by Rolling Stone LLC
Life Products Solutions Group, LLC
FL
100%
by Zinnia Tech Solutions LLC
Life.io, LLC
DE
100%
by Zinnia Tech Solutions LLC
Lifestyle Products Group LLC
DE
100%
by Direct Holdings Global LLC
Linda Margaret Rae LLC
DE
100%
by After The Fact LLC
Little Beet Brands Holdings, LLC
DE
100%
by Aurify Brands Holdings, LLC
Little Beet Table, LLC
NY
100%
by Aurify Brands Holdings, LLC
Little Beet, LLC
NY
98.0%
by Aurify Brands Holdings, LLC
Little Bluestem, LLC
KS
100%
by Sherwood Park, Inc.
26
Name
Jurisdiction
Percent of Voting Securities Owned
Liverpool Holdings Limited
GBR
100%
by CI-F Zenith UK Holdings Limited
LME1 Limited
GBR
100%
by Competitive Socialising Limited
Lost in the Andes, LLC
CA
100%
by MRC Documentary, L.P.
Love Retro LLC
DE
100%
by Lifestyle Products Group LLC
LPQ Sailboat Pond, Inc.
DE
100%
by APQ Sailboat Pond NY, LLC
LPQ USA, LLC
DE
100%
by Aurify Brands, LLC
LR Special Limited
UK
100%
by A24 Films LLC
LSB Chemical L.L.C.
OK
100%
by LSB Industries, Inc.
LSB Funding LLC
DE
100%
by NHNO Holdings LLC
LSB Industries, Inc.
DE
10.0%
by LSB Funding LLC
LU The Film Limited
GBR
50.0%
by Fulwell 73 Limited
Luminate Data Holdings, LLC
DE
100%
by PME TopCo, LLC
Luminate Data, LLC
DE
100%
by Luminate Data Holdings, LLC
Luxury Linoleum LLC
DE
100%
by A24 Films LLC
Madison Portfolio Trust, LLC
DE
100%
by EPH, LLC
MAG Finance, LLC
KS
100%
by Dornwood Park,LLC
Malt Shop Cruise 18 LLC
DE
100%
by StarVista Live LLC
Malt Shop Cruise 19 LLC
DE
100%
by StarVista Live LLC
Malt Shop Cruise 21 LLC
DE
100%
by StarVista Live LLC
Malt Shop Cruise 22 LLC
DE
100%
by StarVista Live LLC
Malt Shop Cruise 23 LLC
DE
100%
by StarVista Live LLC
Maman sait mieux Productions Inc.
CAN
100%
by Mommy Knows Best LLC
Maple Hill, LLC
KS
100%
by Sherwood Park, Inc.
Maple Portfolio Trust, LLC
DE
100%
by EPH, LLC
Maranon Capital Ultimate General Partner, LLC
DE
50.0%
by Eldridge Maranon Holdings, LLC
Maranon Capital, LP
DE
60.17%
by Eldridge Maranon Holdings, LLC
Maranon Centre Street Executive Fund LP
DE
99.0%
by Maranon Capital, L.P.
Maranon Centre Street General Partner, LP
DE
100%
by Maranon Capital Ultimate General Partner LLC
Maranon Centre Street Partnership LP
DE
0%
Mgmt. by Maranon Centre Street General Partner, LP
Maranon Centre Street SPV LLC
DE
100%
by Maranon Centre Street Partnership LP
Maranon Loan Funding 2024-1, LLC
DE
100%
by Sherwood Park, Inc.
Maranon Management LLC
DE
100%
by Maranon Capital, L.P.
Maranon Mezzanine Executive Fund, LP
DE
0%
Mgmt. by Maranon Mezzanine GP, LP
Maranon Mezzanine Fund II, LP
DE
0%
Mgmt. by Maranon Mezzanine GP II, LP
Maranon Mezzanine Fund, LP
DE
0%
Mgmt. by Maranon Mezzanine GP, LP
Maranon Mezzanine GP II, LP
DE
0%
Mgmt. by Maranon Capital Ultimate General Partner
LLC
Maranon Mezzanine GP, LP
DE
0%
Mgmt. by Maranon Capital Ultimate General Partner
LLC
Maranon Mezzanine Offshore Fund II, LP
CYM
0%
Mgmt. by Maranon Mezzanine GP II, LP
Maranon Senior Credit Fund II-A, LP
DE
0%
Mgmt. by Maranon Senior Credit GP II, L.P.
Maranon Senior Credit Fund II-B, LP
DE
0%
Mgmt. by Maranon Senior Credit GP II, L.P.
Maranon Senior Credit Fund IX DB, L.P.
DE
0%
Mgmt. by Maranon Capital Ultimate General Partner
LLC
Maranon Senior Credit Fund IX GP, L.P.
DE
100%
by Maranon Capital Ultimate General Partner LLC
Maranon Senior Credit Fund IX, LLC
DE
100%
by Maranon Senior Credit Fund IX DB, L.P.
Maranon Senior Credit Fund IX, LLC
DE
0%
Mgmt. by Maranon Senior Credit Fund IX GP, L.P.
Maranon Senior Credit Fund V-Onshore SPV LLC
DE
100%
by Maranon Senior Credit Strategies Fund V-Levered,
LP
Maranon Senior Credit GP II, L.P.
DE
0%
Mgmt. by Maranon Capital Ultimate General Partner
LLC
Maranon Senior Credit IV, LLC
KS
100%
by Sherwood Park, Inc.
27
Name
Jurisdiction
Percent of Voting Securities Owned
Maranon Senior Credit Opportunities Fund SPV
GP, LP
DE
0%
Mgmt. by Maranon Capital Ultimate General Partner
LLC
Maranon Senior Credit Opportunities Fund SPV,
LLC
DE
100%
by Maranon Senior Credit Opportunities Fund SPV,
LP
Maranon Senior Credit Opportunities Fund SPV,
LP
DE
0%
Mgmt. by Maranon Senior Credit Opportunities Fund
SPV GP, LP
Maranon Senior Credit Strategies Fund V-Levered,
LP
DE
0%
Mgmt. by Maranon Senior Credit Strategies GP V, LP
Maranon Senior Credit Strategies Fund
V-Unlevered, LP
DE
0%
Mgmt. by Maranon Senior Credit Strategies GP V, LP
Maranon Senior Credit Strategies Fund X GP, L.P.
DE
0%
Mgmt. by Maranon Capital Ultimate General Partner
LLC
Maranon Senior Credit Strategies Fund XIII DB,
LLC
DE
0%
Mgmt. by Maranon Senior Strategies Fund XIII GP,
L.P.
Maranon Senior Credit Strategies Fund XIV GP,
L.P.
DE
0%
Mgmt. by Maranon Capital Ultimate General Partner
LLC
Maranon Senior Credit Strategies Fund XIV, L.P.
DE
0%
Mgmt. by Maranon Senior Credit Strategies Fund XIV
GP, L.P.
Maranon Senior Credit Strategies Fund
X-Levered, L.P.
DE
0%
Mgmt. by Maranon Senior Credit Strategies Fund X
GP, L.P.
Maranon Senior Credit Strategies Fund
X-Unlevered, L.P.
DE
0%
Mgmt. by Maranon Senior Credit Strategies Fund X
GP, L.P.
Maranon Senior Credit Strategies GP V, LP
DE
0%
Mgmt. by Maranon Capital Ultimate General Partner
LLC
Maranon Senior Credit X-Levered SPV, LLC
DE
100%
by Maranon Senior Credit Strategies Fund X-Levered,
L.P.
Maranon Senior Rated Fund I LLC
DE
0%
Mgmt. by Maranon Capital, L.P.
Maranon Senior Strategies Fund XIII GP, L.P.
DE
100%
by Maranon Capital Ultimate General Partner LLC
Maranon Senior Strategies Fund XIII, L.P.
DE
100%
by Maranon Senior Credit Strategies Fund XIII DB,
LLC
Maranon Services Corp.
DE
100%
by Maranon Capital, L.P.
Maranon Services, LLC
DE
99.9%
by Maranon Capital, L.P.
Maranon Services, LLC
DE
0.1%
by Maranon Services Corp.
Mary The Film Limited
GBR
100%
by Fulwell 73 UK Limited
MASH EI Holdco, LLC
DE
0%
Mgmt. by EEH 2017 Prefered Member, LLC
Maslow's Group LLP
GBR
0%
Board rights held by Cain PE LLC
Maslow's UK Services Ltd
GBR
100%
by 37-41 Mortimer Street LLP
Mason Portfolio Trust, LLC
DE
100%
by EPH, LLC
Massive Noise Holdings, LLC
DE
100%
by 13FEG Ops, LLC
Massive Noise LLC
CO
100%
by Massive Noise Holdings, LLC
Mayfair Portfolio Trust, LLC
DE
100%
by EPH, LLC
MB The Film Limited
GBR
100%
by Fulwell 73 UK Limited
Meadowlark Funding LLC
KS
100%
by Dayton Funding, LLC
Media Rights Capital II, LLC
DE
100%
by MRC III Holdings, LLC
Media Rights Capital III, LLC
DE
0.94%
by DCP Holdco I LLC
Media Rights Capital III, LLC
DE
36.56%
by EMG HoldCo, LLC
Meez Culinary Solutions, Inc.
DE
14.9%
by Aurify Brands Management, LLC
Meez Culinary Solutions, Inc.
DE
85.1%
by Aurify Brands, LLC
Mellotron, LLC
DE
40.0%
by Carlostron, LLC
Melt Shop Enterprises, LLC
NY
100%
by Melt Shop, LLC
Melt Shop, LLC
NY
96.5%
by Aurify Brands Holdings, LLC
Merriam Portfolio Trust, LLC
DE
100%
by Dayton Funding, LLC
MF Master Seed Co., LLC
DE
100%
by Wanamaker Portfolio Trust, LLC
MF Seed Co, LLC
DE
100%
by MF Master Seed Co, LLC
28
Name
Jurisdiction
Percent of Voting Securities Owned
MG Warwick Street HoldCo Limited
GBR
100%
by Maslow's Group LLP
MG Warwick Street OpCo Limited
GBR
100%
by MG Warwick Street HoldCo Limited
MG Warwick Street PropCo Limited
GBR
100%
by MG Warwick Street HoldCo Limited
Miami Waterfront Ventures Mezz, LLC
DE
100%
by CHE South Brickell LLC
Miami Waterfront Ventures Parent, LLC
DE
60.0%
by CHE South Brickell LLC
Miami Waterfront Ventures, LLC
DE
100%
by CHE South Brickell LLC
Miller Avenue Productions LLC
DE
100%
by After The Fact LLC
Miller Avenue Rights LLC
DE
100%
by A24 Films LLC
Millway Drive LLC
DE
100%
by A24 Films LLC
Mine Creek, LLC
KS
100%
by Chain Bridge Opportunistic Funding Holdings,
LLC
Ministry of Arts and Interrogation LLC
DE
100%
by A24 Films LLC
Ministry of Creative Reasoning LLC
DE
100%
by After The Fact LLC
Miss Gabler Productions LLC
DE
100%
by A24 Films LLC
Miss Gabler Rights LLC
DE
100%
by A24 Films LLC
MK Debt, LLC
DE
100%
by LPQ USA, LLC
MK USA, LLC
DE
100%
by LPQ USA, LLC
MNV The Film Limited
GBR
100%
by Fulwell 73 UK Limited
Mommy Knows Best LLC
DE
100%
by A24 Films LLC
Monarch Field, LLC
KS
100%
by Security Benefit Life Insurance Company
Monoceros Media LLC
DE
100%
by A24 Films LLC
Monoceros Post Inc.
CAN
100%
by Monoceros Rights LLC
Monoceros Rights LLC
DE
100%
by A24 Films LLC
Monroe Portfolio Trust, LLC
DE
100%
by Eldridge Industries, LLC
Monsters of God LLC
DE
100%
by A24 Films LLC
Monterey Portfolio Trust, LLC
DE
100%
by Dayton Funding, LLC
Monterra Asset Holdings, LLC
DE
100%
by Monterra Trust
Monterra FA Holdings, LLC
NJ
100%
by Monterra Trust
Monterra Trust
DE
100%
by EPH Holdings, LLC
Morning People LLC
DE
100%
by Elia Management LLC
Morningside Portfolio Trust, LLC
DE
100%
by EPH, LLC
Morse Code UK Films Limited
GBR
100%
by MRC II Holdings, LP
Morse Code, LLC
CA
100%
by MRC II Holdings, LP
Mosaic Media Investment Partners, LLC
DE
100%
by DCP Holdings DE, LLC
Mother Knows Post LLC
DE
100%
by A24 Films LLC
Mother Mary Rights LLC
DE
100%
by A24 Films LLC
Motown The Film Limited
GBR
100%
by Fulwell 73 UK Limited
MPQ 1377 Sixth Avenue, LLC
NY
100%
by MK USA, LLC
MPQ 1400 Broadway, LLC
NY
100%
by MK USA, LLC
MPQ 1535 Third Avenue LLC
NY
100%
by MK USA, LLC
MPQ 1800 Broadway, LLC
NY
100%
by MK USA, LLC
MPQ 2161 Broadway, LLC
NY
100%
by MK USA, LLC
MPQ 339 Seventh Avenue, LLC
NY
100%
by MK USA, LLC
MPQ 370 Lexington, LLC
NY
100%
by MK USA, LLC
MPQ 400 Fifth Avenue, LLC
NY
100%
by MK USA, LLC
MPQ 685 Third Avenue, LLC
NY
100%
by MK USA, LLC
MPQ 688 Bronx HoldCo, LLC
DE
100%
by MK USA, LLC
MPQ 921 Broadway, LLC
NY
100%
by MK USA, LLC
MPQ Bronx Commissary, LLC
NY
100%
by MK USA, LLC
MRC Documentary Holdings, LLC
DE
100%
by Media Rights Capital II, LLC
MRC Documentary, L.P.
DE
99.9%
by Media Rights Capital II, LLC
MRC Horizon II, LLC
DE
100%
by EMG AH LLC
MRC I Hedge Co, LLC
DE
100%
by MRC II Holdings, LP
29
Name
Jurisdiction
Percent of Voting Securities Owned
MRC I Project Co, LLC
DE
100%
by MRC II Holdings, LP
MRC II Distribution Company, L.P.
DE
99.9%
by Media Rights Capital II, LLC
MRC II Holdings, LP
DE
99.9%
by MRC II Distribution Company, L.P.
MRC II Sub GP, LLC
DE
100%
by Media Rights Capital II, LLC
MRC III Holdings, LLC
DE
100%
by Media Rights Capital III, LLC
MRC International Distribution Company, Inc.
DE
100%
by MRC II Distribution Company, L.P.
MRC Investments, LLC
DE
100%
by Media Rights Capital II, LLC
MRC360, LLC
CA
100%
by MRC II Holdings, LP
MS 111 Fulton, LLC
NY
100%
by Melt Shop, LLC
MS Marketing Fund, LLC
NY
100%
by Melt Shop, LLC
MS Menlo Park, LLC
NY
100%
by Melt Shop, LLC
MS Roosevelt Field, LLC
NY
100%
by Melt Shop, LLC
MS Smith Haven, LLC
NY
100%
by Melt Shop, LLC
MS Special Events, LLC
NY
100%
by Melt Shop, LLC
MS Staten Island, LLC
NY
100%
by Melt Shop, LLC
MS Sub W50, LLC
NY
100%
by MS W50, LLC
MS W26, LLC
NY
100%
by Melt Shop, LLC
MS W50, LLC
NY
100%
by Melt Shop, LLC
MS W52, LLC
NY
100%
by Melt Shop, LLC
MS Westchester, LLC
NY
100%
by Melt Shop, LLC
MSP The Film Limited
GBR
100%
by Fulwell 73 UK Limited
MTI Preferred Holdings LLC
DE
100%
by Grigg Portfolio Trust, LLC
Music Business Worldwide Limited (UK)
GBR
50.0%
by PME Holdings, LLC
MV The Film Limited
GBR
100%
by Fulwell 73 UK Limited
N318MM, LLC
KS
50.0%
by Security Benefit Corporation
Nashville Nightmare, LLC
TN
100%
by Nightmare Holdings, LLC
Nashville The Film Limited
GBR
100%
by Fulwell 73 UK Limited
NBT Holdings, LLC
DE
97.0%
by Venture Brand Management LLC
Net-Net Worldwide LLC
DE
100%
by A24 Films LLC
Nextant Aerospace, LLC
OH
80.0%
by Nextant Sales, LLC
Nextant Sales, LLC
OH
100%
by Fairgrave Omlie, LLC
NHNO Holdings LLC
DE
100%
by NPK Holdings LLC
Nice Playground LLC
DE
100%
by A24 Films LLC
Nice Playground Rights LLC
DE
100%
by A24 Films LLC
Nicodemus Place, LLC
KS
100%
by Sherwood Park, Inc.
Nightmare Holdings, LLC
DE
100%
by 13 FEG Haunted Holdings, LLC
No Commas LLC
DE
100%
by A24 Films LLC
North City Screams LLC
IL
100%
by 13 FEG Haunted Holdings, LLC
Note Funding 1892-2, LLC
KS
100%
by EPH, LLC
NP The Film Limited
GBR
100%
by Fulwell 73 UK Limited
NPK Holdings LLC
DE
100%
by EPH, LLC
NZC Capital LLC
DE
89.8%
by Todd L. Boehly, Individual
Oak Landing Production LLC
DE
100%
by A24 Films LLC
Oakridge Portfolio Trust, LLC
DE
100%
by EPH, LLC
Oaktree Entertainment, LLC
DE
100%
by MRC II Holdings, LP
Oaktree Opportunities XII CAIS (Onshore)
Access Fund, L.P.
DE
0%
Mgmt. by CAIS OT Opportunities XII CAIS
(Onshore) Access Fund GP LLC
Oasis BH, LLC
DE
20.2%
by CI BH Holdings II LLC
Oasis BH, LLC
DE
33.2%
by CI BH Holdings LLC
Oasis West Realty LLC
DE
100%
by OWR Mezz II Borrower LLC
OBH Intermediate Holdco, LLC
DE
100%
by Oasis BH, LLC
Objective Feedback LLC
DE
100%
by A24 Films LLC
Ocarina Incident LLC
DE
100%
by A24 Films LLC
30
Name
Jurisdiction
Percent of Voting Securities Owned
Ocarina Incident Rights LLC
DE
100%
by A24 Films LLC
On The Rocks LLC
DE
100%
by After The Fact LLC
One BH Investors LLC
DE
77.5%
by Cain RE LLC
One Sky Flight Holdings, LLC
DE
100%
by Epic Aero, Inc.
One Sky Flight, LLC
DE
100%
by One Sky Flight Holdings, LLC
Oorah Productions LLC
DE
100%
by A24 Films LLC
Opus Rights LLC
DE
100%
by A24 Films LLC
Orchard Wharf Developments Ltd
GBR
50.0%
by Galliard Holdings Ltd
Osler Media Inc.
CAN
100%
by Paultergeist Pictures LLC
Osler Media Quebec Inc.
CAN
100%
by Paultergeist Pictures LLC
Oso Season LLC
DE
100%
by A24 Films LLC
Owl Capital, LLC
DE
0%
Mgmt. by EEH 2017 Prefered Member, LLC
OWR Mezz II Borrower LLC
DE
100%
by OBH Intermediate Holdco, LLC
Ozawkie LLC
KS
100%
by Dayton Funding, LLC
Paderna sp.zo.o
Poland
100%
by PZO JV B.V.
Palmer Portfolio Trust, LLC
DE
100%
by EPH, LLC
Palouse Productions LLC
DE
100%
by A24 Films LLC
Panagram Holdings, LLC
DE
100%
by Eldridge AM Holdings, LLC
Panagram Senior Loan Fund I GP, LLC
DE
100%
by Panagram Holdings, LLC
Panagram Senior Loan Fund I, LP
DE
0%
Mgmt. by Panagram Senior Loan Fund I GP, LLC
Panagram Senior Loan Fund II GP, LLC
DE
100%
by Panagram Holdings, LLC
Panagram Senior Loan Fund II, LP
DE
0%
Mgmt. by Panagram Senior Loan Fund II GP, LLC
Panagram Senior Loan Fund III GP, LLC
DE
100%
by Panagram Holdings, LLC
Panagram Senior Loan Fund III, LP
DE
0%
Mgmt. by Panagram Senior Loan Fund III GP, LLC
Panagram Senior Loan Fund IV GP, LLC
DE
100%
by Panagram Holdings, LLC
Panagram Senior Loan Fund IV, LP
DE
0%
Mgmt. by Panagram Senior Loan Fund IV GP, LLC
Panagram Senior Loan Fund V GP, LLC
DE
100%
by Panagram Holdings, LLC
Panagram Senior Loan Fund V, LP
DE
0%
Mgmt. by Panagram Senior Loan Fund V GP, LLC
Panagram Senior Loan Fund VI GP, LLC
DE
100%
by Panagram Holdings, LLC
Panagram Senior Loan Fund VI, LP
DE
0%
Mgmt. by Panagram Senior Loan Fund VI GP, LLC
Panagram Services Holdings, LLC
DE
100%
by Panagram Holdings, LLC
Panagram Services, LLC
DE
99.0%
by Panagram Holdings, LLC
Panagram Services, LLC
DE
1.0%
by Panagram Services Holdings, LLC
Panagram Structured Asset Management, LLC
DE
100%
by Panagram Holdings, LLC
Parks and Haites Limited
GBR
100%
by A24 Films LLC
Parkville Portfolio Trust, LLC
DE
100%
by Dayton Funding, LLC
Passing The Baton LLC
DE
100%
by A24 Films LLC
Paultergeist Pictures LLC
DE
100%
by A24 Films LLC
PayActiv, Inc.
DE
17.65%
by Eldridge PayActiv Holdings LLC
PD Holdings LLC
DE
100%
by Dayton Funding, LLC
PG Senior Loan Fund VIII Issuer, LLC
DE
100%
by Merriam Portfolio Trust, LLC
Pickleback NOLA, LLC
LA
100%
by MRC II Holdings, LP
Pickleback, LLC
CA
100%
by MRC II Holdings, LP
Pinckney Holdings, LLC
DE
100%
by Security Benefit Life Insurance Company
Pinecrest Portfolio Trust, LLC
DE
100%
by EPH, LLC
Pink Chair Productions LLC
DE
100%
by After The Fact LLC
Pink Chair Rights LLC
DE
100%
by A24 Films LLC
Pink Opaque LLC
DE
100%
by After The Fact LLC
Pink Opaque Rights LLC
DE
100%
by A24 Films LLC
Pixion Games Limited
GBR
11.62%
by Eldridge Pixion Funding LLC
Planet Janet Rights LLC
DE
100%
by A24 Films LLC
PME AH LLC
DE
100%
by EMH II, LLC
PME Holdings, LLC
DE
100%
by PME TopCo, LLC
31
Name
Jurisdiction
Percent of Voting Securities Owned
PME Music, LLC
DE
100%
by PME Holdings, LLC
PME TopCo, LLC
DE
40.0%
by EMH-PME Holdings, LLC
PME-DCP HoldCo, LLC
DE
100%
by PME TopCo, LLC
Poker Face CDN Productions Inc.
CAN
100%
by MRC II Holdings, LP
Poppy Field Productions, LLC
CA
100%
by MRC II Holdings, LP
Portsmouth Zenith Holdings Limited
GBR
100%
by CI-F Zenith UK Holdings Limited
Post Portfolio Trust, LLC
DE
100%
by Monroe Portfolio Trust, LLC
Potwin Place, LLC
KS
100%
by Dayton Funding, LLC
Powder Keg Farms Limited
New
Zealand
100%
by A24 Distribution, LLC
Prairie Hill, LLC
KS
100%
by Sherwood Park, Inc.
PrescientCo Holdings, LLC
DE
16.58%
by Eldridge PCH Holdings, LLC
PrescientCo Holdings, LLC
DE
15.25%
by Mayfair Portfolio Trust, LLC
PrescientCo Holdings, LLC
DE
23.5%
by Palmer Portfolio Trust, LLC
PrescientCo Holdings, LLC
DE
24.82%
by Steamboat Portfolio Trust, LLC
PrescientCo LLC
DE
100%
by PrescientCo Holdings, LLC
Prezzo InvestCo Limited
GBR
90.0%
by Jampurchaseco Limited
Prezzo Trading Limited
GBR
100%
by Prezzo InvestCo Limited
Priest Lake Haunted Woods, LLC
TN
100%
by Nightmare Holdings, LLC
Primary Issue Anchor Separate Account LLC
DE
100%
by Sherwood Park, Inc.
Primrose Portfolio Trust, LLC
DE
100%
by EPH, LLC
Princess Klepto LLC
DE
100%
by After The Fact LLC
Princess Klepto Rights LLC
DE
100%
by A24 Films LLC
PrivateFly Limited
GBR
100%
by Skyjet Europe Limited
Procyon Evergreen I GP LLC
DE
100%
by Capital Integration Systems LLC
Procyon Evergreen I, L.P.
DE
0%
Mgmt. by Procyon Evergreen I GP LLC
Procyon Vintage I GP LLC
DE
100%
by Capital Integration Systems LLC
Procyon Vintage I, L.P.
DE
0%
Mgmt. by Procyon Vintage I GP LLC
Pryor Chemical Company
OK
100%
by LSB Chemical L.L.C.
Public House Productions LLC
DE
100%
by A24 Films LLC
Pumpkin Fest Holdings, LLC
DE
100%
by 13FEG Ops, LLC
Putnam Asset Holdings, LLC
DE
100%
by EPH, LLC
PZO JV B.V.
Netherlands
90.0%
by CIEF1 UK Holdings Limited
Queen Morgan, LLC
CA
100%
by MRC Documentary Holdings, LLC
Queens LLC
DE
100%
by After The Fact LLC
Quick As A Wink Limited
New
Zealand
100%
by Reserving Rights LLC
Quinton Heights, LLC
KS
100%
by Dayton Funding, LLC
Raging Bear, LLC
DE
100%
by MRC II Holdings, LP
Raising Destiny, LLC
CA
100%
by MRC Documentary, L.P.
Ramy Rights LLC
DE
100%
by A24 Films LLC
Ravenwood Portfolio Trust, LLC
DE
100%
by Dayton Funding, LLC
Real Time Situation LLC
DE
100%
by A24 Films LLC
Red Sea 2022-1, LLC
KS
100%
by Sherwood Park, Inc.
Red Sea 2022-3, LLC
KS
100%
by Sherwood Park, Inc.
Renegade Brands USA, INC.
DE
20.0%
by Canon Portfolio Trust, LLC
Reserving Rights LLC
DE
100%
by A24 Films LLC
Revolving Window LLC
DE
100%
by A24 Films LLC
Ride or Die CDN Productions Inc.
CAN
100%
by MRC II Holdings, LP
Ride or Die Productions, LLC
CA
100%
by MRC II Holdings, LP
Ridge Media Holdings, LLC
DE
100%
by GEC Finance, LLC
Riot Going On, LLC
CA
100%
by MRC Documentary, L.P.
Ripley Park, LLC
DE
70.0%
by Security Benefit Life Insurance Company
32
Name
Jurisdiction
Percent of Voting Securities Owned
Ripple Effects CDN Productions Inc.
CAN
100%
by MRC II Holdings, LP
Ripple Effects Productions, LLC
CA
100%
by MRC II Holdings, LP
Rivabella sp.zo.o
Poland
100%
by Krakow Office Park B.V.
Rock and Romance Cruise 18 LLC
DE
100%
by StarVista Live LLC
Rock and Romance Cruise 19 LLC
DE
100%
by StarVista Live LLC
Rock and Romance Cruise 20 LLC
DE
100%
by StarVista Live LLC
Rock and Romance Cruise 22 LLC
DE
100%
by StarVista Live LLC
Rock and Romance Cruise 23 LLC
DE
100%
by StarVista Live LLC
Roll Down, LLC
CA
100%
by MRC II Holdings, LP
Rolling Stone Licensing LLC
DE
100%
by Rolling Stone LLC
Rolling Stone LLC
DE
100%
by Rolling Stone Media, LLC
Rolling Stone Media, LLC
DE
100%
by PME Music, LLC
Roman 1 Sarl
LUX
100%
by Roman JV Sarl
Roman 2 Sarl
LUX
100%
by Roman JV Sarl
Roman JV Sarl
LUX
100%
by CI Roman Holdings Sarl
Roman SNC
France
99.9%
by Roman 1 Sarl
Roman SNC
France
50.0%
by Roman 2 Sarl
Round About Bar LLC
DE
100%
by After The Fact LLC
Round About Pub Limited
GBR
100%
by A24 Films LLC
Round About Rights LLC
DE
100%
by A24 Films LLC
Royalty Rights LLC
DE
100%
by A24 Films LLC
RoyaltyHL5 LLC
DE
100%
by A24 Films LLC
RR The Film Limited
GBR
100%
by Fulwell 73 UK Limited
RS Branding, LLC
DE
100%
by Rolling Stone LLC
Ruby Entertainment Inc.
DE
100%
by Fulwell 73 Productions US, Inc.
Ruby Portfolio Trust, LLC
DE
100%
by EPH, LLC
Ruby Productions LLC
CA
100%
by Ruby Entertainment Inc.
Rules Beauty, Inc.
DE
54.0%
by A24 Ventures LLC
Rush Job LLC
DE
100%
by A24 Films LLC
S(LSV) LLC
NV
100%
by Competitive Socializing US LLC
S(WBP)LLC
DC
100%
by Competitive Socializing US LLC
S(WDC) LLC
DC
100%
by Competitive Socializing US LLC
S(WMB) LLC
NY
100%
by Competitive Socializing US LLC
Sable River Capital, LLC
DE
0%
Mgmt. by EEH 2017 Prefered Member, LLC
Sager House (Almeida) Limited
GBR
100%
by CH Capital A Holdings LLC
Saguaro Road Records Inc.
DE
100%
by Direct Holdings U.S. LLC
SAILES 2, LLC
DE
100%
by Security Benefit Life Insurance Company
SAM Alternative Investment Opportunities Fund I,
L.P.
DE
0%
Mgmt. by CAIS SAM Alternative Investment
Opportunities Fund I GP LLC
Sandy Beaches Cruise 21 LLC
DE
100%
by StarVista Live LLC
Sassafras Jam LLC
DE
100%
by A24 Films LLC
Saving The World LLC
DE
100%
by A24 Films LLC
SB Corporate Funding LLC
DE
100%
by Security Benefit Corporation
SB IIS Co LLC
DE
100%
by Security Benefit Life Insurance Company
SB ISH LLC
DE
100%
by Security Benefit Life Insurance Company
SB Knoema Holdings, LLC
DE
100%
by Security Benefit Corporation
SB Restructured Asset, LLC
DE
100%
by Hawk Trail, LLC
SBC Civic Center LLC
DE
100%
by Mason Portfolio Trust, LLC
SBC LAD Holdings, LLC
DE
100%
by Security Benefit Corporation
SBL Holdings, Inc.
KS
100%
by Security Benefit Corporation
SBT Investors LLC
DE
100%
by NZC Capital LLC
SBT Media Holdings, LLC
DE
100%
by SBT Investors, LLC
SBT-WWB, LLC
DE
100%
by SBT Investors, LLC
33
Name
Jurisdiction
Percent of Voting Securities Owned
SCF 115H LLC
DE
69.32%
by Stonebriar Commercial Finance LLC
SCF 1322SL LLC
DE
85.24%
by Stonebriar Commercial Finance LLC
SCF 1324-01MB LLC
DE
65.84%
by Stonebriar Commercial Finance LLC
SCF 1337BCB LLC
DE
72.54%
by Stonebriar Commercial Finance LLC
SCF 1341UL LLC
DE
53.82%
by Stonebriar Commercial Finance LLC
SCF 1343-01M LLC
DE
63.22%
by Stonebriar Commercial Finance LLC
SCF 1358-001A LLC
DE
64.94%
by Stonebriar Commercial Finance LLC
SCF Aviation Capital LLC
DE
100%
by SCF Funding LLC
SCF Canada 2019-2 GP Ltd.
CAN
100%
by Stonebriar Commercial Finance Canada Inc.
SCF Canada 2020 GP Ltd.
CAN
100%
by Stonebriar Commercial Finance Canada Inc.
SCF Canada 2021 GP Ltd.
CAN
100%
by Stonebriar Commercial Finance Canada Inc.
SCF Canada 2022 GP Ltd.
CAN
100%
by Stonebriar Commercial Finance Canada Inc.
SCF Canada 2022-2 GP Ltd.
CAN
100%
by Stonebriar Commercial Finance Canada Inc.
SCF Canada 2023-1 GP Ltd.
CAN
100%
by Stonebriar Commercial Finance Canada Inc.
SCF Canada Revolver GP Ltd.
CAN
100%
by Stonebriar Commercial Finance Canada Inc.
SCF Equipment Leasing 2019-2 LLC
DE
100%
by Stonebriar Commercial Finance LLC
SCF Equipment Leasing 2020-1 LLC
DE
100%
by Stonebriar Commercial Finance LLC
SCF Equipment Leasing 2021-1 LLC
DE
100%
by Stonebriar Commercial Finance LLC
SCF Equipment Leasing 2022-1 LLC
DE
100%
by Stonebriar Commercial Finance LLC
SCF Equipment Leasing 2022-2 LLC
DE
100%
by Stonebriar Commercial Finance LLC
SCF Equipment Leasing Canada 2019-2 Limited
Partnership
CAN
99.9%
by SCF Canada 2019-2 GP Ltd.
SCF Equipment Leasing Canada 2020-1 Limited
Partnership
CAN
99.9%
by SCF Canada 2020 GP Ltd.
SCF Equipment Leasing Canada 2021-1 Limited
Partnership
CAN
99.9%
by SCF Canada 2021 GP Ltd.
SCF Equipment Leasing Canada 2022-2 Limited
Partnership
CAN
99.9%
by SCF Canada 2022 GP Ltd.
SCF Equipment Leasing Canada 2023-1 Limited
Partnership
CAN
99.9%
by SCF Canada 2023-1 GP Ltd.
SCF Funding LLC
DE
100%
by Stonebriar Finance Holdings LLC
SCF FW Issuer LLC
DE
100%
by SCF Aviation Capital LLC
SCF Goose LLC
DE
100%
by SCF Aviation Capital LLC
SCF Maverick LLC
DE
100%
by SCF Aviation Capital LLC
SCF Merlin LLC
DE
100%
by SCF Aviation Capital LLC
SCF MRL Subsidiary LLC
DE
84.96%
by Stonebriar Commercial Finance LLC
SCF NBL LLC
DE
100%
by SCF Funding LLC
SCF Preferred Equity, LLC
DE
0%
Mgmt. by Stonebriar Finance Holdings LLC
SCF Rail Leasing LLC
DE
100%
by SCF Funding LLC
SCF Revolver 2018-1 LLC
DE
100%
by Stonebriar Commercial Finance LLC
SCF Revolver Canada Limited Partnership
CAN
99.9%
by SCF Canada Revolver GP Ltd.
SCF SB Investor, LLC
KS
100%
by Sherwood Park, Inc.
SCF Servicing Company LLC
DE
99.0%
by SCF Funding LLC
SE2 Services LLC
DE
100%
by Zinnia Corporate Holdings, LLC
se2, LLC
KS
100%
by Zinnia Corporate Holdings, LLC
SecBen GBM Investco, LLC
DE
100%
by Security Benefit Life Insurance Company
Second Failure, LLC
CA
100%
by MRC II Holdings, LP
Security Benefit Academy, Inc.
KS
100%
by Security Benefit Corporation
Security Benefit Business Services, LLC
KS
100%
by Security Benefit Corporation
Security Benefit Corporation
KS
99.755%
by Eldridge SBC Holdings LLC
Security Benefit Life Insurance Company
KS
100%
by SBL Holdings, Inc.
Security Distributors, LLC
KS
100%
by Security Benefit Life Insurance Company
Security Financial Resources, Inc.
KS
100%
by SBL Holdings, Inc.
34
Name
Jurisdiction
Percent of Voting Securities Owned
Seek Data LLC
TN
100%
by Knoema Holdings, LLC
Selenicereus LLC
DE
100%
by A24 Films LLC
Sensory Impact Group, LLC
DE
73.0%
by Arch Portfolio Trust, LLC
Sentient Holdings, LLC
DE
100%
by One Sky Flight, LLC
Sentient Jet Charter, LLC
DE
100%
by Sentient Jet, LLC
Sentient Jet, LLC
DE
100%
by Sentient Holdings, LLC
Sesame Marketplace, Inc.
DE
90.0%
by Aurify Brands Management, LLC
Seward Street Maiden Voyage, LLC
CA
100%
by X4Y LLC
Seward Street Productions, LLC
CA
100%
by Seward Street Maiden Voyage, LLC
Sewer Boys LLC
DE
100%
by After The Fact LLC
Sewer Boys Rights LLC
DE
100%
by A24 Films LLC
SFG Multi-Strategy Fund GP LLC
DE
100%
by Capital Integration Systems LLC
SFG Multi-Strategy Fund, L.P.
DE
0%
Mgmt. by SFG Multi-Strategy Fund GP LLC
SGT VF GP, LLC
DE
100%
by EPH Holdings, LLC
SGTV Fund, LP
DE
0%
Mgmt. by SGT VF GP, LLC
Shamrock Valley, LLC
KS
100%
by Security Benefit Life Insurance Company
Shelter At Home LLC
DE
100%
by A24 Films LLC
Shepherd's Pie UK Ltd
GBR
100%
by MRC II Holdings, LP
Shepherd's Pie, LLC
CA
100%
by MRC II Holdings, LP
Sherwood Park, Inc.
KS
100%
by Security Benefit Corporation
Shock Hill Field, LLC
KS
100%
by Sherwood Park, Inc.
Short of the Week, LLC
DE
10.3%
by Sugar23, Inc.
SIMCOM Holdings, Inc.
DE
50.0%
by Volo Sicuro, LLC
SIMCOM International, Inc.
FL
100%
by SIMCOM, Inc.
SIMCOM, Inc.
DE
100%
by SIMCOM Holdings, Inc.
Sirio Acquisition S.r.l.
Italy
100%
by Volare Acquisitions, Limited
Sirio S.p.A.
Italy
90.0%
by Sirio Acquisition S.r.l.
Sixth Avenue Reinsurance Company
VT
100%
by Security Benefit Life Insurance Company
SJS&W Washington Property LLC
DE
100%
by St. James Sports and Wellness Washington LLC
Skyjet Europe Limited
GBR
100%
by One Sky Flight, LLC
Skylark Portfolio Trust, LLC
DE
100%
by EPH, LLC
SLOMOG Limited
GBR
100%
by Fulwell 73 UK Limited
Slushie LLC
DE
100%
by After The Fact LLC
Soft Money LLC
DE
100%
by A24 Films LLC
Soggy Jam UK Limited
GBR
100%
by MRC II Holdings, LP
Soggy Jam, LLC
CA
100%
by MRC II Holdings, LP
Somebody Told Me, LLC
DE
100%
by Eldridge IP Holdings LLC
Sommsation Holdings, LLC
DE
100%
by Eldridge Industries, LLC
Sommsation Services Holdings LLC
DE
100%
by Sommsation Holdings, LLC
Sommsation Services, LLC
DE
100%
by Sommsation Holdings, LLC
Sommsation, LLC
DE
100%
by Sommsation Holdings, LLC
Soul Train Cruise 18 LLC
DE
100%
by StarVista Live LLC
Soul Train Cruise 19 LLC
DE
100%
by StarVista Live LLC
Soul Train Cruise 20 LLC
DE
100%
by StarVista Live LLC
Soul Train Cruise 22 LLC
DE
100%
by StarVista Live LLC
Soul Train Cruise 23 LLC
DE
100%
by StarVista Live LLC
Soundview Portfolio Trust, LLC
DE
100%
by Field Point Portfolio Trust, LLC
South Audley Street LLP
GBR
0%
Board rights held by CH Capital A Holdings LLC
Southern Rock Cruise 19 LLC
DE
100%
by StarVista Live LLC
Southern Rock Cruise 20 LLC
DE
100%
by StarVista Live LLC
Spinmedia LLC
DE
100%
by EMH-PME Holdings, LLC
Spoon River Investments, LLC
DE
100%
by SBT Investors, LLC
Sports Media Technology Corporation
DE
14.1%
by Steamboat Portfolio Trust, LLC
35
Name
Jurisdiction
Percent of Voting Securities Owned
Squid and Octopi LLC
DE
100%
by A24 Films LLC
SRJ Entertainment LLC
CA
100%
by BFT Entertainment Inc
SRSB Credit Fund LLC
KS
100%
by Sherwood Park, Inc.
SRSB OCF LLC
KS
100%
by Sherwood Park, Inc.
SSVP Capital, LLC
KS
100%
by Hawk Trail, LLC
St. James Sports and Wellness Washington LLC
DE
100%
by The St. James Sports and Wellness Complex LLC
Starmaker Rights LLC
DE
100%
by A24 Films LLC
Starmaker Studios LLC
DE
100%
by A24 Films LLC
StarVista Entertainment LLC
DE
100%
by Direct Holdings Global LLC
StarVista Live LLC
DE
100%
by StarVista Entertainment LLC
Steamboat Portfolio Trust, LLC
DE
100%
by EPH, LLC
Stereogum Media LLC
DE
20.0%
by EMG AH LLC
Stewart Street Productions, LLC
DE
100%
by DCP Holdings DE, LLC
Stonebriar Commercial Finance Canada Inc.
CAN
100%
by SCF Funding LLC
Stonebriar Commercial Finance LLC
DE
100%
by SCF Funding LLC
Stonebriar Finance Holdings LLC
DE
88.4%
by Stonebriar Holdings LLC
Stonebriar Holdings LLC
DE
100%
by Three L Finance Holdings, LLC
Stonebriar IFH LLC
DE
100%
by SCF Funding LLC
Strataca Holdings, LLC
KS
100%
by Sherwood Park, Inc.
Strivers LLC
DE
100%
by The St. James Sports and Wellness Complex LLC
Studio Momo LLC
DE
100%
by After The Fact LLC
Sugar23 Podcast Group LLC
DE
100%
by Sugar23, Inc.
Sugar23, Inc.
DE
20.05%
by Valence Circle Up, LLC
Sulliverhills Spain, SLU
Spain
95.0%
by CIEF1 UK Holdings Limited
Sunday Best, LLC
CA
100%
by MRC Documentary, L.P.
Sunny Waves, LLC
CA
100%
by MRC II Holdings, LP
Sunny With A Chance Limited
New
Zealand
100%
by Imatech Technologies LLC
Sunset Hills, LLC
KS
100%
by Sherwood Park, Inc.
Sunset Screams LLC
TX
100%
by 13 FEG Haunted Holdings, LLC
Super Eagles, LLC
CA
100%
by MRC Documentary Holdings, LLC
Super, Awesome & Amazing LLC
DE
100%
by The St. James Sports and Wellness Complex LLC
Sweepstakes Hero, LLC
CA
100%
by MRC Documentary, L.P.
Swingers 1 Limited
GBR
100%
by Competitive Socialising Limited
Swingers 2 Limited
GBR
100%
by Competitive Socialising Limited
Swingers NY LLC
NY
100%
by Competitive Socializing US LLC
SXSW, LLC
TX
50.0%
by PME Holdings, LLC
Syracuse City, LLC
KS
100%
by Sherwood Park, Inc.
Talk Later LLC
DE
100%
by A24 Films LLC
Tamarack Portfolio Trust, LLC
DE
100%
by Dayton Funding, LLC
TCG Private Credit 2024, L.P.
DE
0%
Mgmt. by CAIS TCG Private Credit 2024 GP LLC
TCG Private Equity 2022, L.P.
DE
0%
Mgmt. by CAIS TCG Private Equity 2022 GP LLC
Technicolor Dreamcourt LLC
DE
100%
by A24 Films LLC
Ten Ten Productions LLC
CA
100%
by Ruby Entertainment Inc.
Terror on the Fox Holdings, LLC
CO
100%
by 13 FEG Haunted Holdings, LLC
TFEG ABG LA JV, LLC
DE
100%
by 13 FEG Haunted Holdings, LLC
TFEG OW JV, LLC
DE
50.0%
by Thirteenth Floor Entertainment Group, LLC
The Hollywood Reporter, LLC
DE
100%
by PME Holdings, LLC
The Most Down to Earth, LLC
CA
100%
by MRC Documentary, L.P.
The St. James FCVA LLC
VA
100%
by SJS&W Washington Property LLC
The St. James Lacrosse LLC
VA
100%
by SJS&W Washington Property LLC
The St. James Media LLC
DE
100%
by The St. James Sports and Wellness Complex LLC
36
Name
Jurisdiction
Percent of Voting Securities Owned
The St. James Sports & Wellness Lincolnshire
LLC
DE
100%
by Cain International LP
The St. James Sports and Wellness Complex LLC
DE
0%
Board rights held by CHE SJG LLC
The Stage Shoreditch (Commercial Tower) GP Ltd
GBR
100%
by The Stage Shoreditch (Commercial Tower) Unit
Trust
The Stage Shoreditch (Commercial Tower) LP
GBR
99.9%
by The Stage Shoreditch (Commercial Tower) Unit
Trust
The Stage Shoreditch (Commercial Tower)
Nominee Ltd
GBR
100%
by The Stage Shoreditch (Commercial Tower) GP Ltd
The Stage Shoreditch (Commercial Tower) Unit
Trust
JEY
99.2%
by The Stage Shoreditch (Master) Unit Trust
The Stage Shoreditch (Containers) GP Ltd
GBR
100%
by The Stage Shoreditch (Containers) Unit Trust
The Stage Shoreditch (Containers) LP
GBR
99.9%
by The Stage Shoreditch (Containers) Unit Trust
The Stage Shoreditch (Containers) Nominee Ltd
GBR
100%
by The Stage Shoreditch (Containers) GP Ltd
The Stage Shoreditch (Containers) Unit Trust
JEY
99.2%
by The Stage Shoreditch (Master) Unit Trust
The Stage Shoreditch (Curtain Theatre) GP Ltd
GBR
100%
by The Stage Shoreditch (Curtain Theatre) Unit Trust
The Stage Shoreditch (Curtain Theatre) LP
GBR
64.9%
by The Stage Shoreditch (Curtain Theatre) Unit Trust
The Stage Shoreditch (Curtain Theatre) Nominee
Ltd
GBR
100%
by The Stage Shoreditch (Curtain Theatre) GP Ltd
The Stage Shoreditch (Curtain Theatre) Unit Trust
JEY
99.2%
by The Stage Shoreditch (Master) Unit Trust
The Stage Shoreditch (Master) Unit Trust
JEY
99.0%
by The Stage Shoreditch LLP
The Stage Shoreditch (Office North) GP Ltd
GBR
100%
by The Stage Shoreditch (Office North) Unit Trust
The Stage Shoreditch (Office North) LP
GBR
99.9%
by The Stage Shoreditch (Office North) Unit Trust
The Stage Shoreditch (Office North) Nominee Ltd
GBR
100%
by The Stage Shoreditch (Office North) GP Ltd
The Stage Shoreditch (Office North) Unit Trust
JEY
99.2%
by The Stage Shoreditch (Master) Unit Trust
The Stage Shoreditch (Office South) GP Ltd
GBR
100%
by The Stage Shoreditch (Office South) Unit Trust
The Stage Shoreditch (Office South) LP
GBR
99.9%
by The Stage Shoreditch (Office South) Unit Trust
The Stage Shoreditch (Office South) Nominee Ltd
GBR
100%
by The Stage Shoreditch (Office South) GP Ltd
The Stage Shoreditch (Office South) Unit Trust
JEY
99.2%
by The Stage Shoreditch (Master) Unit Trust
The Stage Shoreditch (Pavilion) GP Ltd
GBR
65.0%
by The Stage Shoreditch (Pavilion) Unit Trust
The Stage Shoreditch (Pavilion) LP
GBR
99.9%
by The Stage Shoreditch (Pavilion) Unit Trust
The Stage Shoreditch (Pavilion) Nominee Ltd
GBR
100%
by The Stage Shoreditch (Pavilion) GP Ltd
The Stage Shoreditch (Pavilion) Unit Trust
JEY
99.2%
by The Stage Shoreditch (Master) Unit Trust
The Stage Shoreditch (The Tower) GP Ltd
GBR
100%
by The Stage Shoreditch (The Tower) Unit Trust
The Stage Shoreditch (The Tower) LP
GBR
99.9%
by The Stage Shoreditch (The Tower) Unit Trust
The Stage Shoreditch (The Tower) Nominee Ltd
GBR
100%
by The Stage Shoreditch (The Tower) GP Ltd
The Stage Shoreditch (The Tower) Unit Trust
JEY
99.2%
by The Stage Shoreditch (Master) Unit Trust
The Stage Shoreditch Deveopment LLP
GBR
100%
by The Stage Shoreditch LLP
The Stage Shoreditch LLP
GBR
0%
Board rights held by CH McCourt (The Stage) LLC
The Stage Shoreditch Management Ltd
GBR
100%
by The Stage Shoreditch (Master) Unit Trust
The Stage Shoreditch Residential HoldCo Limited
GBR
100%
by The Stage Shoreditch (Master) Unit Trust
The Stage Shoreditch Residential Ltd
GBR
100%
by The Stage Shoreditch (Master) Unit Trust
Thirteenth Floor Entertainment Group, LLC
DE
50.0%
by Sensory Impact Group, LLC
Thornwood Capital, LLC
DE
0%
Mgmt. by EEH 2017 Prefered Member, LLC
Three L Finance Holdings, LLC
DE
100%
by Eldridge Equipment Finance LLC
Tiger Productions LLC
DE
100%
by A24 Films LLC
TIL 2022 LIMITED
GBR
100%
by Fulwell 73 UK Limited
TLB-GBM, LLC
DE
100%
by Todd L. Boehly, Individual
Topeka Grand Hotels, LLC
DE
37.0%
by Security Benefit Life Insurance Company
Tornado Digital, LLC
KS
100%
by Sherwood Park, Inc.
Trigger Investco, LLC
DE
100%
by Putnam Asset Holdings, LLC
Trigger Media Group, LLC
DE
100%
by Trigger Investco, LLC
Trinity Stuart Development LLC
DE
100%
by Trinity Stuart Holding, LLC
37
Name
Jurisdiction
Percent of Voting Securities Owned
Trinity Stuart Holding, LLC
DE
85.0%
by CI Boston Holdings LLC
Trinity Stuart Hotel LLC
DE
100%
by Trinity Stuart Holding, LLC
Triple8, LLC
KS
100%
by Security Benefit Life Insurance Company
Trison Construction, Inc.
OK
100%
by LSB Chemical L.L.C.
Truebill, Inc.
DE
18.22%
by Eldridge Truebill Funding, LLC
TS Pied-a-Terre Holding, LLC
DE
100%
by Trinity Stuart Holding, LLC
TS Residences Holding, LLC
DE
100%
by Trinity Stuart Holding, LLC
TS Retail Holding, LLC
DE
100%
by Trinity Stuart Holding, LLC
TSJ Bethesda Property LLC
DE
100%
by The St. James Sports and Wellness Complex LLC
TSJ Lincolnshire Property LLC
DE
100%
by The St. James Sports and Wellness Complex LLC
TSJ Management Company LLC
DE
100%
by The St. James Sports and Wellness Complex LLC
TSJ RTC Property LLC
DE
100%
by The St. James Sports and Wellness Complex LLC
TSJ Tysons Galleria Property LLC
VA
0%
Mgmt. by The St. James Sports and Wellness
Complex LLC
TT Entertainment
GBR
33.0%
by Fulwell 73 UK Limited
Tuvoli Canada, Inc.
CAN
100%
by Tuvoli, LLC
Tuvoli Holdings, LLC
DE
16.87%
by Eldridge EA Holdings, LLC
Tuvoli Holdings, LLC
DE
2.45%
by Eldridge Tuvoli Holdings LLC
Tuvoli Holdings, LLC
DE
12.98%
by Epic Preferred Holdings II LLC
Tuvoli Holdings, LLC
DE
3.67%
by Epic Preferred Holdings LLC
Tuvoli, LLC
DE
100%
by Tuvoli Holdings, LLC
Twenty Years LLC
DE
100%
by After The Fact LLC
Twenty Years Rights LLC
DE
100%
by A24 Films LLC
UB The Film Limited
GBR
100%
by Fulwell 73 Limited
Ultimate Disco Cruise 19 LLC
DE
100%
by StarVista Live LLC
Ultimate Disco Cruise 20 LLC
DE
100%
by StarVista Live LLC
Ultimate Disco Cruise 22 LLC
DE
100%
by StarVista Live LLC
Ultimate Disco Cruise 23, LLC
DE
100%
by StarVista Live LLC
Un Chien Bizarre LLC
DE
100%
by A24 Films LLC
Uniq Lark Development, S.L.U.
Spain
100%
by Sulliverhills Spain, SLU
Upstate Riot, LLC
CA
100%
by MRC Documentary Holdings, LLC
Valence A24, LLC
DE
100%
by EMG AH LLC
Valence APM, LLC
DE
100%
by Media Rights Capital II, LLC
Valence Circle Up, LLC
DE
100%
by EMG AH LLC
Valence FW73, LLC
DE
100%
by EMG AH LLC
Valence Media, LLC
DE
100%
by EMH-PME LLC
Valence Zig Holdings, LLC
DE
100%
by EMG AH LLC
Variety Media, LLC
DE
100%
by PME Holdings, LLC
Vectura Services LLC
DE
100%
by Eldridge Business Services LLC
Venn Music Publishing, LLC
CA
100%
by Gaming 247, Inc.
Venn Records LLC
CA
100%
by Gaming 247, Inc.
Venn Studios LLC
CA
100%
by Gaming 247, Inc.
Venture Brand Management LLC
DE
100%
by Sugar23, Inc.
Vibe Media Publishing, LLC
DE
100%
by PME Music, LLC
Vim & Victor LLC
DE
100%
by The St. James Sports and Wellness Complex LLC
Viral Nation, Inc.
CAN
19.1%
by Eldridge Viral Nation Purchaseco Ltd.
Vista Portfolio Trust, LLC
DE
100%
by EPH, LLC
Vivid Seats, Inc.
DE
29.77%
by Post Portfolio Trust, LLC
Volare Acquisitions, Limited
Ireland
49.0%
by Flexjet Limited
Volo Sicuro, LLC
DE
19.89%
by Eldridge VS, LLC
Volo Sicuro, LLC
DE
5.97%
by Epic Aero, Inc.
Vydia, Inc.
DE
100%
by Gamma Media Holdings, LLC
WAAM Acquisition LLC
VA
100%
by The St. James Media LLC
38
Name
Jurisdiction
Percent of Voting Securities Owned
Wanamaker Portfolio Trust, LLC
KS
100%
by EPH, LLC
Watson Brickell Development Mezz, LLC
DE
100%
by CHE 830 Brickell LLC
Watson Brickell Development Parent, LLC
DE
50.0%
by CHE 830 Brickell LLC
Watson Brickell Development Pledgor, LLC
DE
100%
by CHE 830 Brickell LLC
Watson Brickell Development, LLC
DE
100%
by CHE 830 Brickell LLC
WBC, LLC
DE
100%
by MRC II Holdings, LP
Weary Blues Holdings, LLC
KS
100%
by Sherwood Park, Inc.
Weaver Portfolio Trust, LLC
DE
100%
by EPH, LLC
Weissach Capital, LLC
DE
0%
Mgmt. by EEH 2017 Prefered Member, LLC
Western Remedy LLC
DE
100%
by A24 Films LLC
Westgate House Developments Limited
GBR
50.0%
by Galliard Developments Ltd
White Whale Productions, LLC
CA
100%
by MRC II Holdings, LP
Wight Cap Holdings, LLC
DE
0%
Mgmt. by EEH 2017 Prefered Member, LLC
Wildfires, LLC
CA
100%
by MRC Documentary, L.P.
Wildwood Portfolio Trust, LLC
DE
100%
by SBT Investors, LLC
Windsor Portfolio Trust, LLC
DE
100%
by Dayton Funding, LLC
Windy Screams LLC
IL
100%
by 13 FEG Haunted Holdings, LLC
Winning Spirit and Sons LLC
DE
100%
by A24 Films LLC
Wizards Productions LLC
DE
100%
by A24 Films LLC
WWB Holdings II, LLC
DE
100%
by SBT-WWB, LLC
WWB Holdings, LLC
DE
100%
by SBT-WWB, LLC
X4Y LLC
DE
100%
by Sugar23, Inc.
Yekaterina UK Limited
GBR
100%
by MRC II Holdings, LP
Yekaterina, LLC
CA
100%
by MRC II Holdings, LP
Young Brothers LLC
DE
100%
by A24 Films LLC
Zinnia Asset Holdings, LLC
DE
100%
by se2 Holdco, LLC
Zinnia Business Services LLC
DE
100%
by Zinnia Corporate Holdings, LLC
Zinnia Corporate Holdings, LLC
DE
100%
by SE2 Asset Holdings LLC
Zinnia Digital Service LLP
India
0.0001%
by se2, LLC
Zinnia Digital Service LLP
India
99.9999%
by Zinnia Corporate Holdings, LLC
Zinnia Distributor Solutions LLC
DE
100%
by Zinnia Tech Solutions LLC
Zinnia Holdco, LLC
KS
100%
by Security Benefit Corporation
Zinnia Tech Solutions Canada ULC
CAN
100%
by Zinnia Tech Solutions LLC
Zinnia Tech Solutions LLC
DE
100%
by Zinnia Corporate Holdings, LLC
Zinnia Technology Services Ireland
Ireland
100%
by Zinnia Corporate Holdings, LLC
First Security Benefit Life Insurance and Annuity Company of New York is the depositor of the following separate accounts: T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York, Variable Annuity Account A, and Variable Annuity Account B. As depositor of the separate accounts, FSBL might be deemed to control them.
Item 30.
Indemnification
Article IX, Section 1(a) of the By-laws of First Security Benefit Life Insurance and Annuity Company of New York includes the following provision:
The Corporation shall indemnify to the fullest extent now or hereafter provided for or permitted by law each person involved in, or made or threatened to be made a party to, any action suit, claim or proceeding, whether civil or criminal, including any investigative, administrative, legislative, or other proceeding, and including any action by or in the right of the Corporation or any other corporation, or any partnership, joint venture, trust, employee benefit plan, or other enterprise (any such entity, other than the Corporation, being hereinafter referred to as an “Enterprise”), and including appeals therein (any such action or process being hereinafter referred to as a “Proceeding”), by reason of the fact that such person, such person’s testator or intestate (i) is or was a director or officer of the Corporation, or (ii) is or was serving, at the request of the Corporation, as a director, officer, or in any other capacity, or any other Enterprise, against any and all judgments, amounts paid in settlement, and expenses, including attorney’s fees, actually and reasonably incurred as a result of or in connection with any Proceeding, except as provided in Subsection (b) below.
39
Insofar as indemnification for a liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Depositor has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Depositor will, unless in the opinion of its counsel the matter has been settled by a controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
Item 31.
Principal Underwriter
(a)(1)
Security Distributors, LLC (“SDL”) acts as principal underwriter for:
 
 
 
Variable Annuity Account A (AdvisorDesigns Variable Annuity)
Variable Annuity Account A (EliteDesigns Variable Annuity)
Variable Annuity Account A (EliteDesigns II Variable Annuity)
Variable Annuity Account B (SecureDesigns Variable Annuity)
Variable Annuity Account B (AdvanceDesigns Variable Annuity)
T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York
 
 
(a)(2)
SDL also acts as principal underwriter for the following separate accounts of Security Benefit Life Insurance Company:
 
 
 
SBL Variable Annuity Account I
SBL Variable Annuity Account III
SBL Variable Annuity Account IV
Security Varilife Separate Account (Security Elite Benefit)
Security Varilife Separate Account (Security Varilife)
SBL Variable Life Insurance Account (Varilife)
Parkstone Advantage Variable Annuity
Variflex Separate Account (Variflex)
Variflex Separate Account (Variflex ES)
SBL Variable Annuity Account VIII (Variflex Extra Credit)
SBL Variable Annuity Account VIII (Variflex LS)
SBL Variable Annuity Account VIII (Variflex Signature)
SBL Variable Annuity Account XI (Scarborough Advantage Variable Annuity)
SBL Variable Annuity Account XIV (AdvisorDesigns Variable Annuity)
SBL Variable Annuity Account XIV (AEA Variable Annuity)
SBL Variable Annuity Account XIV (AdvanceDesigns Variable Annuity)
SBL Variable Annuity Account XIV (EliteDesigns Variable Annuity)
SBL Variable Annuity Account XIV (EliteDesigns II Variable Annuity)
SBL Variable Annuity Account XIV (NEA Valuebuilder)
SBL Variable Annuity Account XIV (NEA Valuebuilder Retirement Income Director Variable Annuity)
SBL Variable Annuity Account XIV (SecureDesigns Variable Annuity)
SBL Variable Annuity Account XIV (Security Benefit Advisor Variable Annuity)
SBL Variable Annuity Account XVII (ClassicStrategies Variable Annuity)
SBL Variable Annuity Account XVII (ThirdFed Variable Annuity)
T. Rowe Price Variable Annuity Account
 
 
(a)(3)
SDL acts as principal underwriter for the following Nationwide Life Insurance Company Separate Accounts:
 
 
 
Nationwide Multi-Flex Variable Account
Nationwide Variable Account 9
(b)
Name and Principal
Business Address*
Position and Offices with Underwriter
 
David G. Byrnes
President and Head of Distribution
40
(b)
Name and Principal
Business Address*
Position and Offices with Underwriter
 
Christopher L. Brown
Chief Financial Officer, Treasurer, and Finance and Operations Principal
 
Kurt E. Auleta
Senior Vice President, Western Division
 
Justin A. Jacquinot
Senior Vice President, Direct Relationships
 
James J. Kiley
Senior Vice President, Education Market and Affiliates
 
Michael T. Maghini
Senior Vice President, National Accounts
 
Michael K. Reidy
Senior Vice President
 
Matthew V. Rocha
Senior Vice President, Eastern Division
 
Kevin M. Watt
Senior Vice President
 
Carmen R. Hill
Vice President and Assistant Secretary
 
Christopher D. Swickard
Vice President and Secretary
 
Donald A. Wiley
Vice President
 
Mark J. Carr
Assistant Vice President
 
Gregory C. Garhart
Assistant Vice President, Chief Compliance Officer and AML Compliance Officer
 
Aaron M. Tallen
Assistant Vice President, Internal Sales and Distribution Operations
 
Susan J. Lacey
Assistant Treasurer
 
Lisa M. Young
Assistant Treasurer
 
*For all persons listed, the principal business address is One Security Benefit Place, Topeka, Kansas 66636-0001.
(c)
(1)
(2)
(3)
(4)
(5)
 
Name of
Principal Underwriter
Net
Underwriting
Discounts and
Commissions
Compensation
on Redemption
Brokerage
Commissions
Other
Compensation
 
Security Distributors, LLC
$22,0011
$02
$0
N/A
 
1
FSBL pays commissions to selling broker-dealers through SDL. This is the amount paid to SDL in connection with all
Contracts sold through the Separate Account. SDL passes through to the selling broker-dealers all such amounts.
 
2
A contingent deferred sales charge may be assessed on a full or partial withdrawal from the Contract. This is the
amount of contingent deferred sales charge assessed in connection with all withdrawals from all contracts in the
Separate Account, all of which is retained by FSBL.
Item 32.
Location of Accounts and Records
[Omitted]
Item 33.
Management Services
All management contracts are discussed in Part A or Part B.
Item 34.
Fee Representation and Other Representations
Fee Representation
First Security Benefit Life Insurance and Annuity Company of New York represents that the fees and charges deducted under the Contract, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the Depositor.
Other Representations
(a)
Depositor represents that it is relying upon American Council of Life Insurance, SEC No-Action Letter, [1988-1989 Transfer Binder] Fed. Sec. L. Rep. (CCH) 78,904 (Nov. 28, 1988), and that it has complied with the provisions of paragraphs (1)-(4) of such no-action letter which are incorporated herein by reference.
41

Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this registration statement under rule 485(b) under the Securities Act and has caused this registration statement to be signed on its behalf by the undersigned, duly authorized, in the City of Topeka, and State of Kansas on this 30th day of April, 2024.
By:
First Security Benefit Life Insurance and Annuity Company of New York
 
(the Depositor)
 
*
 
 
Douglas G. Wolff, Chief Executive Officer and Director
By:
Variable Annuity Account B
 
(The Registrant)
 
*
 
 
Douglas G. Wolff, Chief Executive Officer and Director
As required by the Securities Act of 1933, this Post-Effective Amendment to the Registration Statement has been signed by the following persons in the capacities indicated on April 30, 2024.
SIGNATURES AND TITLES
By:
*
Douglas G. Wolff, Chief Executive Officer and Director
By:
*
Susan J. Lacey, Vice President and Controller
By:
*
Caleb I. Brainerd, Senior Vice President, Chief Financial Officer, and Director
By:
*
John F. Guyot, Senior Vice President, General Counsel, Secretary, and Director
By:
*
Joseph W. Wittrock, Senior Vice President, Chief Investment Officer, and Director
By:
*
Roger S. Offermann, Senior Vice President, Chief Actuary, Chief Product Officer, and Director
By:
*
Stephen A. Crane, Director
By:
*
Wayne S. Diviney, Director
By:
*
Stephen R. Herbert, Director
By:
*
Michael P. Kiley, Director
By:
*
Katherine P. White, Director
*By:
/s/ Chris Swickard
Chris Swickard, as Attorney-in-Fact
1

Table of Contents
EXHIBIT INDEX
(l)
Consent of Independent Registered Public Accounting Firm
1
ATTACHMENTS / EXHIBITS

ATTACHMENTS / EXHIBITS

EX-99.(L)