SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Statutory Financial Statements and Schedules

December 31, 2023 and 2022

(With Independent Auditors’ Report Thereon)

KPMG LLP

Suite 1100

One Jackson Place

188 East Capitol Street

Jackson, MS 39201-2127

Independent Auditors’ Report

The Board of Directors

Southern Farm Bureau Life Insurance Company:

Opinions

We have audited the statutory financial statements of Southern Farm Bureau Life Insurance Company (the Company), which comprise the statutory statements of admitted assets, liabilities, and stockholders’ equity as of December 31, 2023 and 2022, and the related statutory statements of earnings, changes in stockholders’ equity, and cash flow for the years then ended, and the related notes to the statutory financial statements.

Unmodified Opinion on Statutory Basis of Accounting

In our opinion, the accompanying statutory financial statements present fairly, in all material respects, the admitted assets, liabilities, and stockholders’ equity of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flow for the years then ended in accordance with accounting practices prescribed or permitted by the Mississippi Insurance Department described in Note 1.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the statutory financial statements do not present fairly, in accordance with U.S. generally accepted accounting principles, the financial position of the Company as of December 31, 2023 and 2022, or the results of its operations or its cash flows for the years then ended.

Basis for Opinions

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 Auditors’ 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.

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

As described in Note 1(c) to the statutory financial statements, the statutory financial statements are prepared by the Company using accounting practices prescribed or permitted by the Mississippi Insurance Department, which is a basis of accounting other than U.S. generally accepted accounting principles. Accordingly, the statutory financial statements are not intended to be presented in accordance with U.S. generally accepted accounting principles. The effects on the statutory financial statements of the variances between the statutory accounting practices and U.S. generally accepted accounting principles are also described in Note 1(d).

Responsibilities of Management for the Financial Statements

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

KPMG LLP, a Delaware limited liability partnership and a member firm of
the KPMG global organization of independent member firms affiliated with
KPMG International Limited, a private English company limited by guarantee.

In preparing the statutory financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date that the statutory financial statements are issued.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the statutory financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the statutory financial statements.

In performing an audit in accordance with GAAS, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the statutory financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the statutory financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the statutory 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.

Supplementary Information

Our audits were conducted for the purpose of forming an opinion on the statutory financial statements as a whole. The supplementary information included in the Schedules 1-4 is presented for purposes of additional analysis and is not a required part of the statutory financial statements but is supplementary information required by the Mississippi Insurance Department. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the statutory financial statements. The information has been subjected to the auditing procedures applied in the audits of the statutory financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the statutory financial statements or to the statutory financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the information is fairly stated in all material respects in relation to the statutory financial statements as a whole.

/s/ KPMG LLP

Jackson, Mississippi

April 24, 2024

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Statutory Statements of Admitted Assets,
Liabilities and Stockholders’ Equity

December 31, 2023 and 2022

Admitted Assets	2023		2022
Investments:
Bonds, generally at amortized cost (fair value of $9,757,861,408 in 2023 and $9,518,726,930 in 2022)	$	10,445,444,509		10,410,052,514
Stocks:
Preferred stocks, generally at fair value (amortized cost of $36,327,532 in 2023 and $37,961,524 in 2022)		35,407,975		35,295,568
Common stocks, at fair value (cost of $676,137,776 in 2023 and $770,915,766 in 2022)		832,445,266		835,598,235
Total stocks		867,853,241		870,893,803
Mortgage loans		2,072,686,676		1,945,699,102
Real estate:
Home office property, at cost, less accumulated depreciation of $36,200,785 in 2023 and $35,318,780 in 2022		17,747,046		18,612,754
Real estate held for investment, at cost		1,088,764		1,088,764
Total real estate		18,835,810		19,701,518
Other invested assets		1,273,785,372		1,179,868,851
Cash, cash equivalents and short-term investments, at cost, which approximates fair value		166,610,145		134,051,061
Policy loans		609,441,017		587,826,584
Receivable for securities/other		2,899,910		2,800,118
Total investments		15,457,556,680		15,150,893,551
Other assets:
Federal income taxes recoverable		—		7,892,365
Deferred income taxes		56,521,579		55,092,574
Premiums deferred and uncollected		365,738,422		351,473,620
Accrued investment income		127,229,693		120,495,347
Company owned life insurance contracts		72,513,579		70,525,125
Other receivables and other assets		19,392,720		13,038,414
Separate account assets		8,320,609		7,572,744
Total other assets		649,716,602		626,090,189
Total admitted assets	$	16,107,273,282		15,776,983,740

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Statutory Statements of Admitted Assets,

Liabilities and Stockholders’ Equity

December 31, 2023 and 2022

Liabilities and Stockholders’ Equity	2023		2022
Aggregate policy reserves:
Life and annuity policies and contracts	$	10,959,553,788		10,831,569,832
Accident and health contracts		153,563,457		154,051,557
Supplementary contracts		131,737,002		136,564,844
Total aggregate policy reserves		11,244,854,247		11,122,186,233
Policy and contract claims		54,552,675		56,052,417
Policyholders’ funds:
Premiums received in advance		449,801		574,438
Funds on deposit		22,200,825		23,479,281
Accrued policy dividends		53,600,431		49,132,743
Dividends left on deposit		209,982,839		217,473,125
Total policyholders’ funds		286,233,896		290,659,587
Pension plan administration funds		461,968,428		460,216,258
General liabilities:
Taxes, other than federal income taxes		7,947,993		6,984,198
Federal income taxes payable		2,128,462		—
Due to affiliates		990,100		1,485,691
Commissions		20,236,739		19,071,431
Notes payable		140,734,204		180,834,210
Pension and postretirement benefits		68,818,516		63,593,372
Accounts payable and other liabilities		67,116,249		74,009,564
Total general liabilities		307,972,263		345,978,466
Asset valuation reserve		483,785,118		369,383,672
Separate account liabilities		8,320,609		7,572,744
Total liabilities		12,847,687,236		12,652,049,377
Stockholders’ equity:
Common stock of $100 par value. Authorized 20,000 shares; issued and outstanding 15,000 shares		1,500,000		1,500,000
Additional paid-in capital		400,000		400,000
Unassigned surplus		3,257,686,046		3,123,034,363
Total stockholders’ equity		3,259,586,046		3,124,934,363
Total liabilities and stockholders’ equity	$	16,107,273,282		15,776,983,740

See accompanying notes to statutory financial statements.

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Statutory Statements of Earnings

Years ended December 31, 2023 and 2022

	2023			2022
Income:
Premiums and other considerations:
Life premiums	$	926,885,773			893,027,312
Annuity premiums and other fund deposits		74,206,784			84,555,368
Accident and health premiums		11,912,026			12,228,734
Supplementary contracts		17,380,866			14,901,340
Investment income, net of expenses of$22,023,541 in 2023 and $21,892,365 in 2022		603,007,736			558,865,208
Separate account fees and other		3,233,993			2,954,110
Total income		1,636,627,178			1,566,532,072
Benefits and reserve changes:
Death benefits		308,568,793			342,341,683
Accident and health benefits		14,366,570			11,940,777
Surrender and other life insurance benefits		393,466,408			319,028,962
Annuity benefits		128,894,486			142,884,847
Net increase in aggregate reserves, certain funds on deposit, and loading on deferred and uncollected premiums		133,340,761			144,657,134
Interest on policy and contract funds		28,323,850			28,946,033
Payments on supplementary contracts		24,959,581			24,719,915
Total benefits and reserve changes		1,031,920,449			1,014,519,351
Other operating expenses:
Commissions		101,453,486			96,382,102
General insurance expenses		209,241,595			194,250,217
Taxes, licenses and fees		31,627,935			30,502,947
Total other operating expenses		342,323,016			321,135,266
Earnings before policyholders’ dividends, federal income taxes and realized investment gains (losses)		262,383,713			230,877,455
Policyholders’ dividends		52,296,381			47,907,503
Earnings before federal income taxes and realized investment gains (losses)		210,087,332			182,969,952
Federal income taxes		45,325,000			39,950,000
Earnings before realized investment gains (losses)		164,762,332			143,019,952
Realized investment gains (losses)		(4,095,127	)		(9,167,104	)
Adjusted for:
Federal income tax expense		(1,695,827	)		(145,088	)
Transfer to interest maintenance reserve		16,557,277			11,073,063
Net realized investment gains		10,766,323			1,760,871
Net earnings	$	175,528,655			144,780,823

See accompanying notes to statutory financial statements.

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Statutory Statements of Changes in Stockholders’ Equity

Years ended December 31, 2023 and 2022

			Additional
	Common		paid-in		Unassigned
	stock		capital		surplus
Balance, December 31, 2021	$	1,500,000		400,000		3,072,402,403
Net earnings		—		—		144,780,823
Change in unrealized investment gains, net		—		—		(128,837,371	)
Change in asset valuation reserve		—		—		89,227,855
Change in net deferred income taxes		—		—		7,424,967
Change in nonadmitted assets		—		—		(60,721,985	)
Change in net actuarial loss on pension and postretirement benefits		—		—		19,957,671
Cash dividends to stockholders		—		—		(21,200,000	)
Balance, December 31, 2022		1,500,000		400,000		3,123,034,363
Net earnings		—		—		175,528,655
Change in unrealized investment gains, net		—		—		84,840,672
Change in asset valuation reserve		—		—		(114,401,446	)
Change in net deferred income taxes		—		—		14,788,665
Change in nonadmitted assets		—		—		(4,256,576	)
Change in net actuarial loss on pension and postretirement benefits		—		—		(348,287	)
Cash dividends to stockholders		—		—		(21,500,000	)
Balance, December 31, 2023	$	1,500,000		400,000		3,257,686,046

See accompanying notes to statutory financial statements.

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Statutory Statements of Cash Flow

Years ended December 31, 2023 and 2022

	2023			2022
Cash from operations:
Premiums, annuity considerations, and other fund deposits	$	984,311,587			960,181,489
Other premiums, considerations and deposits collected		17,380,866			14,901,340
Reinsurance reserve adjustments received on reinsurance ceded		3,693,547			3,322,187
Investment income received		601,809,553			587,119,127
Separate account fees and other income received		1,246,324			616,552
		1,608,441,877			1,566,140,695
Life and accident and health claims paid		(322,135,906	)		(347,565,762	)
Surrender benefits paid		(391,405,948	)		(317,803,090	)
Annuity and other benefits paid to policyholders		(162,495,912	)		(174,586,854	)
		(876,037,766	)		(839,955,706	)
Commissions, taxes and other expenses paid		(337,078,423	)		(309,870,432	)
Dividends paid to policyholders		(42,965,344	)		(39,409,951	)
Federal income taxes paid		(35,304,173	)		(52,335,168	)
		(415,347,940	)		(401,615,551	)
Net cash from operations		317,056,171			324,569,438
Cash from investments:
Proceeds from investments sold, matured or repaid:
Bonds		1,032,375,138			1,144,416,546
Common and preferred stocks		426,491,396			562,039,483
Mortgage loans		107,543,483			198,979,218
Other invested assets		97,601,968			99,996,704
Federal income taxes paid on net capital gains		(1,695,827	)		(145,088	)
Total investment proceeds		1,662,316,158			2,005,286,863
Cost of investments acquired:
Bonds		(1,085,370,961	)		(1,200,521,483	)
Common and preferred stocks		(312,549,385	)		(555,563,930	)
Mortgage loans		(234,531,057	)		(192,227,220	)
Real estate		(2,913,047	)		(5,272,230	)
Other invested assets		(185,029,087	)		(209,989,952	)
Total investments acquired		(1,820,393,537	)		(2,163,574,815	)
Net increase in policy loans		(21,614,433	)		(13,168,332	)
Net cash from investments		(179,691,812	)		(171,456,284	)

Cash from financing and miscellaneous sources:
Payments on notes payable		(40,000,000	)		(10,000,000	)
Other cash provided		6,173,462			3,571,557
Dividends paid to stockholders		(21,500,000	)		(21,200,000	)
Other cash applied		(49,478,737	)		(73,177,616	)
Net cash from financing and miscellaneous sources		(104,805,275	)		(100,806,059	)
Net increase in cash, cash equivalents and short-term investments		32,559,084			52,307,095
Cash, cash equivalents and short-term investments:
Beginning of year		134,051,061			81,743,966
End of year	$	166,610,145			134,051,061

See accompanying notes to statutory financial statements.

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(1)

Corporate Structure, Basis of Presentation and Summary of Significant Accounting Policies

(a)

Corporate Structure

Southern Farm Bureau Life Insurance Company (the Company) operates in the states of Arkansas, Colorado, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Texas, and Virginia. Because the Company operates within these states, the Company is subject to regulatory and market risks within this geographic area.

(b)

Nature of Business

The Company is primarily engaged in the business of providing a portfolio of the usual forms of ordinary life insurance on a participating basis, term, universal, and group life insurance, annuities, and accident and health coverages.

(c)

Basis of Presentation

The accompanying statutory financial statements of the Company have been prepared in conformity with accounting practices prescribed or permitted by the Mississippi Insurance Department. Prescribed statutory accounting practices include a variety of publications of the National Association of Insurance Commissioners (NAIC), as well as state laws, regulations, and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed. The Company has no permitted accounting practices that vary from prescribed accounting practices.

(d)

Differences between Statutory Accounting Practices and U.S. Generally Accepted Accounting Principles

Statutory Accounting Practices (SAP) differ from GAAP in several respects, which cause differences in reported assets, liabilities, stockholders’ equity (statutory capital and surplus), net earnings and cash flows. SAP which differ from GAAP include:

Investments in wholly owned subsidiaries are accounted for using the modified equity method (equity in earnings or losses determined on a statutory basis is included in unassigned surplus rather than earnings) and are treated as unconsolidated investments rather than being consolidated in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 810, Consolidation.

Eligible bonds are carried at amortized cost and other bonds are carried in accordance with valuations established by the NAIC, generally at fair value. Under GAAP, bonds categorized as held to maturity are carried at amortized cost, while bonds categorized as available for sale or trading are carried at fair value.

Investments in preferred stocks are generally carried at fair value not to exceed any currently effective call price, except for redeemable preferred stocks (NAIC 1 and 2) which shall be valued at amortized cost and all other redeemable preferred stocks (NAIC 3 to 6) shall be reported at the lower of amortized cost or fair value. Under GAAP, preferred stocks are carried at fair value.

Certain assets, designated as nonadmitted assets, have been deducted from unassigned surplus.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

Aggregate reserves for life, annuities and accident and health policies are based on statutory requirements as described in the Valuation Manual. Reserves for health insurance are determined based on statutory morbidity and interest. Under GAAP, the reserves are based on either (i) the present value of future benefits less the present value of future net premiums based on mortality, morbidity, and other assumptions which were appropriate at the time the policies were issued or acquired or (ii) the account value for certain contracts without significant life contingencies.

The interest maintenance reserve (IMR) represents the deferral of interest-related realized gains and losses, net of tax, on primarily fixed maturity investments, which are amortized into income over the remaining life of the investment sold or called. No such reserve is required under GAAP.

Deferred income taxes are recognized for both SAP and GAAP; however, the amount permitted to be recognized is generally more restrictive under SAP. Changes in deferred tax assets and liabilities are charged or credited directly to unassigned surplus under SAP. Under GAAP, these changes generally are included in net income.

The asset valuation reserve (AVR) represents a contingency reserve for credit-related risk on most invested assets of the Company and is charged to statutory surplus. No such reserve is required under GAAP.

Policy acquisition costs are expensed as incurred, while under GAAP, these costs are deferred and recognized over either (1) the expected premium paying period or (2) the estimated life of the contract.

Reserves are reported net of ceded reinsurance; under GAAP, reserves relating to business in which the ceding company is not legally relieved of its liability are reported gross with reinsurance receivable being reflected as an asset.

The Statements of Earnings are different in certain respects, with annual life premiums being recognized as revenue upon issue and subsequently upon anniversary. Annuity premiums are recognized as revenue when collected. Accident and health premiums are earned on a pro rata basis over the term of the policies. Under GAAP, premiums on life insurance policies are recognized when due; premiums on annuity contracts are not recognized as revenue but as deposits, including those held in Separate Accounts.

Revenues for universal life policies and investment products consist of the entire premium received and benefits represent the death benefits paid and the change in policy reserves. Under GAAP, premiums received in excess of policy charges are not recognized as premium revenue and benefits represent the excess of benefits paid over the policy account values and interest credited to the account values.

The Statements of Cash Flow differ in certain respects from the presentation required by ASC 230, Statement of Cash Flows, including the presentation of the changes in cash, cash equivalents and short-term investments instead of cash and cash equivalents. Short-term investments include securities with maturities, at the time of acquisition, of one year or less. For statutory purposes, there is no reconciliation between net income and cash from operations.

The provision for participating policyholders’ dividends is determined by the board of directors rather than being recorded ratably over the premium-paying period in accordance with dividend scales contemplated at the time the policies were issued.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

Pension and postretirement benefits expense and the related financial statement disclosures are not determined in accordance with ASC 715, Compensation – Retirement Benefits.

In accordance with Statements of Statutory Accounting Principles (SSAP), investments in low income housing tax credits are accounted for using the amortized cost method in accordance with GAAP with a modification to include tax benefits during the holding period.

The statutory basis financial statements do not include reporting and display of comprehensive income and its components as specified under GAAP.

The aggregate effect on the accompanying statutory financial statements of the variations from GAAP has not been determined, but is presumed to be material.

The preparation of financial statements requires management to make informed judgments and estimates that affect the reported amounts of assets and liabilities (including disclosure of contingent assets and liabilities) at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(e)

Recognition of Revenue and Related Expenses

Life premiums are recognized as income over the premium paying period of the related policies. For accident and health contracts, premiums are earned on a pro rata basis over the applicable policy period. Premiums and fund deposits for universal life, single premium immediate annuity and single premium deferred annuity contracts are reported as revenue when collected. Benefits and other fund withdrawals are expensed as incurred. Policy acquisition and maintenance expenses are charged to operations as incurred.

(f)

Financial Instruments

Investments in bonds are generally stated at amortized cost, except for bonds where the NAIC rating has fallen to 6 and the NAIC fair value has fallen below amortized cost, in which case they are carried at NAIC fair value. Interest revenue is generally recognized when earned.

Amortization of premiums and discounts on mortgage and asset-backed bonds is based on anticipated prepayments at the date of purchase, with significant changes in estimated cash flows from original purchase assumptions recognized using the retrospective method. Prepayment assumptions for mortgage and asset-backed bonds are obtained from broker-dealer surveys. Amortization is accounted for using a method that approximates the interest method.

Common stocks of unaffiliated companies are carried at fair value. Preferred stocks are valued at fair value not to exceed any currently effective call price.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

The Company periodically reviews the portfolio to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of investments. The Company considers the following factors in determining that a decline in value is other-than-temporary: the extent and duration of the decline, the reason for the decline (either interest or credit related), the current conditions and near term financial prospects of the issuer, and the Company’s ability and intent to hold the security for a period of time sufficient to allow for recovery. If management determines that the decline in fair value is other-than-temporary, the cost of the investment is adjusted to fair value and a realized loss is recognized in the statutory statement of earnings. Subsequent recoveries in fair value are not recognized until the security is sold.

Short-term investments are stated at cost, which approximates fair value. Real estate is stated at depreciated cost. Real estate held for sale is carried at the lower of depreciated cost or fair value less encumbrances and estimated costs to sell the property. Mortgage loans and policy loans are stated at their unpaid principal balance, less an allowance for loan losses, if any. Limited partnership interests are accounted for using the equity method.

Low income housing tax credit (LIHTC) property investments are initially recorded at cost and the excess of the carrying amount of the investment over its estimated residual value is amortized over the period in which tax benefits are allocated to the Company. The amount amortized during 2023 and 2022 was $4,262,635 and $6,407,196, respectively, and is reflected as a component of net investment income. The number of remaining years of unexpired tax credits varies from 1 to 6 years with a weighted average of 1.2 years. The required holding period varies from 1 to 10 years with a weighted average of 3.5 years. Currently, the properties are not subject to any regulatory reviews. The aggregate amount of LIHTC does not exceed 10% of the Company’s total assets. At December 31, 2023, there was one impairment in the amount of $33,830 related to the LIHTC investments.

Realized investment gains and losses, determined on a specific identification basis, are reduced by amounts transferred to IMR and are reflected as an element of net income, net of related income taxes. For bonds and preferred stock carried at NAIC fair value, the difference between amortized cost and fair value is treated as an unrealized loss in unassigned surplus. Changes in fair values of common stock and changes in statutory equity of unconsolidated subsidiaries are reflected as unrealized gains and losses on investments in unassigned surplus.

(g)

Nonadmitted Assets

Certain assets, principally furniture, equipment, agents’ debit balances, prepaid expenses, and certain deferred income tax assets have been designated as nonadmitted assets and excluded from assets by a charge to statutory surplus. Changes in these assets are presented as changes in unassigned surplus.

(h)

Aggregate Reserves

Policy reserves on annuity and supplementary contracts are calculated using the Commissioners’ Annuity Reserve Valuation Method. The valuation interest assumptions follow the Standard Valuation Law and Valuation Manual and vary by the contracts’ characteristics and their issue year.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

Policy reserves on life contracts are based on statutory mortality and valuation interest rates using the Commissioners’ Reserve Valuation Method or the Net Level Premium Reserve Method. The valuation interest and mortality assumptions follow the Standard Valuation Law and vary by the contracts’ characteristics and their issue year. Liabilities for life policy reserves and interest-sensitive insurance contracts are based on statutory mortality and interest requirements.

Accident and health benefit reserves are developed by actuarial methods and are determined based on published tables or anticipated experience using specified statutory interest rates, mortality or morbidity assumptions and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the amounts required by law.

In 2018, the Company early-adopted Principle-Based Reserves (PBR) on its 2017 CSO Mortality insurance products. These products include term policies sold January 1, 2018 and later, and also permanent policies and riders sold October 1, 2019 and later.

(i)

Policy and Contract Claims

The liability for claims represents the amount needed to provide for the estimated ultimate cost of settling claims relating to insured events that have occurred on or before the end of the respective reporting period. The liability includes a provision for (a) claims that have been reported to the insurer, and (b) claims related to insured events that have occurred but that have not been reported to the insurer.

Reserve estimates are subject to the effects of trends in claim severity and frequency. Although considerable variability is inherent in such estimates, management believes that the reserves are adequate. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known; such adjustments are included in current operations.

(j)

Interest Maintenance Reserve

The IMR represents the deferral of interest-related realized capital gains and losses, net of tax, primarily on fixed maturity investments. These gains and losses are amortized into investment income on a level yield method over the estimated remaining life of the investment sold or called.

(k)

Asset Valuation Reserve

The AVR is a reserve established to offset the potential for credit-related investment realized and unrealized losses on most investments and is recorded as a liability through a charge to statutory surplus. The reserve is calculated based on credit quality using factors provided by the NAIC.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(l)

Federal Income Taxes

The Company’s method of accounting for income taxes is the liability method. Under the liability method, deferred tax assets and liabilities are adjusted to reflect changes in statutory tax rates which impact surplus in the period such changes are enacted. Deferred income taxes are recognized, subject to statutory limitations, for temporary differences between the financial reporting basis and income tax basis of assets and liabilities, based on enacted tax laws and statutory tax rates applicable to the periods in which the temporary difference is expected to reverse.

(m)

Reinsurance

Premiums, commissions, expense reimbursement, and claims related to reinsured business are accounted for on a basis consistent with that used in accounting for the original policies issued and with the terms of the reinsurance contracts and are reported net of amounts ceded to other companies.

(n)

Guaranty Fund Assessments

State guaranty fund assessments are recognized when (a) an assessment has been asserted or information available prior to issuance of the financial statements indicates it is probable that an assessment will be asserted, (b) the underlying cause of the asserted or probable assessment has occurred on or before the date of the financial statements, and (c) the amount of the loss can be reasonably estimated. In addition, the Company may recognize an asset for an amount when it is probable that a paid or accrued assessment will result in an amount that is recoverable from premium tax offsets or policy surcharges from in-force policies.

(o)

Electronic Data Processing (EDP) Equipment and Software

EDP equipment and operating software are admitted assets to the extent they conform to the requirement of SSAP No. 16, EDP Equipment and Software. These assets, net of accumulated depreciation, are included in the other receivables and other assets line item in the accompanying statutory statements of admitted assets, liabilities and stockholders’ equity. The Company computes depreciation using an accelerated depreciation method (MACRS) for EDP equipment and straight line depreciation method for software.

EDP equipment and operating software assets and accumulated depreciation related to these assets at December 31, 2023 and 2022 were as follows:

	2023			2022
Assets	$	15,344,417			13,439,660
Accumulated depreciation		(11,710,531	)		(9,642,408	)
Net assets	$	3,633,886			3,797,252

Depreciation expense related to these assets was $2,161,447 in 2023 and $2,066,202 in 2022.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(p)

Assets Held in Separate Accounts and Liabilities Related to Separate Accounts

Separate account assets and liabilities reported in the accompanying statutory statements of admitted assets, liabilities and stockholders’ equity represent funds that are separately administered for variable annuity and variable life contracts and for which the contract holder, rather than the Company, bears the investment risk. Separate account assets are reported at fair value. The operations of the separate accounts are not included in the accompanying statutory financial statements. Policy administration and investment management fees charged on separate account policyholder deposits are included in separate account fees and other income on the statutory statements of earnings.

(q)

Recently Issued Accounting Pronouncements

In 2023, the Company adopted the option to admit the net negative (disallowed) Interest Maintenance Reserve (Negative IMR) per the Interpretation of the Statutory Accounting Principles (E) Working Group (INT 23-01). Admittance of the Negative IMR in 2023 increased assets and surplus by $8,710,019.

(r)

Subsequent Events

At its regularly scheduled meeting on February 20, 2024, the Board of Directors of the Company declared a dividend on its outstanding common stock totaling $24,800,000 paid on February 20, 2024 to the ten shareholders of record at February 20, 2024. The dividend declaration and payment was approved in accordance with the Articles of Association and Bylaws of the Company.

The Company has evaluated all other subsequent events through April 24, 2024, the date the financial statements were available to be issued.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(2)

Investments

(a)

Admitted Bonds and Preferred and Common Stocks

At December 31, 2023 and 2022, the cost or amortized cost, gross unrealized gains and losses, and NAIC fair values of the Company’s admitted bonds and preferred and common stocks, excluding stocks of affiliates, were as follows:

	Cost or		Gross		Gross
	amortized		unrealized		unrealized			Estimated
	cost		gains		losses			fair value
2023:
Bonds:
U.S. Treasury securities and obligations of U.S. government corporations and agencies:
U.S. government	$	103,277,021		—		(4,709,333	)		98,567,688
Mortgage-backed securities:
U.S. government		482,337,410		1,500,263		(85,021,762	)		398,815,911
Special revenue		869,346,197		4,667,442		(110,973,215	)		763,040,424
Industrial and miscellaneous		696,940,198		2,819,992		(45,439,174	)		654,321,016
Corporate and other securities:
Special revenue		1,279,024,302		5,436,536		(130,537,834	)		1,153,923,004
Industrial and miscellaneous		6,966,105,009		63,970,158		(392,077,043	)		6,637,998,124
Hybrid securities		50,237,215		2,174,119		(2,111,063	)		50,300,271
Bank Loans		914,285		25,136		(44,451	)		894,970
Total bonds	$	10,448,181,637		80,593,646		(770,913,875	)		9,757,861,408
Preferred stocks	$	36,327,532		1,681,569		(2,644,625	)		35,364,476
Common stocks		676,137,776		169,045,606		(12,738,116	)		832,445,266
Total stocks	$	712,465,308		170,727,175		(15,382,741	)		867,809,742

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

	Cost or		Gross		Gross
	amortized		unrealized		unrealized			Estimated
	cost		gains		losses			fair value
2022:
Bonds:
U.S. Treasury securities and obligations of U.S. government corporations and agencies:
U.S. government	$	68,480,403		—		(5,304,528	)		63,175,875
Mortgage-backed securities:
U.S. government		453,565,085		495,367		(68,925,464	)		385,134,988
Special revenue		823,263,652		2,419,865		(111,413,181	)		714,270,336
Industrial and miscellaneous		741,507,685		2,276,601		(63,798,191	)		679,986,095
Corporate and other securities:
Special revenue		1,265,975,988		2,750,579		(170,532,704	)		1,098,193,863
Industrial and miscellaneous		7,020,805,853		29,478,117		(513,370,486	)		6,536,913,484
Hybrid securities		42,128,707		726,618		(3,051,829	)		39,803,496
Bank Loans		1,336,224		—		(87,431	)		1,248,793
Total bonds	$	10,417,063,597		38,147,147		(936,483,814	)		9,518,726,930
Preferred stocks	$	37,961,524		1,394,566		(4,134,121	)		35,221,969
Common stocks		770,915,766		111,977,085		(47,294,616	)		835,598,235
Total stocks	$	808,877,290		113,371,651		(51,428,737	)		870,820,204

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

The estimated fair value and unrealized losses for debt and equity securities in an unrealized loss position at December 31, 2023 and 2022 were as follows:

	Held in a continuous unrealized loss position
	Less than 12 months						12 months or more					Total
	Estimated			Unrealized			Estimated		Unrealized			Estimated			Unrealized
2023	fair value			losses			fair value		losses			fair value			losses
Bonds:
U.S. Treasury securities and obligations of U.S. government corporations and agencies:
U.S. government	$	54,628,688			(596,800	)		43,939,000		(4,112,533	)		98,567,688			(4,709,333	)
Mortgage-backed securities		238,773,918			(6,745,326	)		1,262,766,245		(234,688,825	)		1,501,540,163			(241,434,151	)
Corporate and other securities		566,103,920			(19,279,596	)		5,537,554,172		(505,490,795	)		6,103,658,092			(524,770,391	)
Total bonds	$	859,506,526			(26,621,722	)		6,844,259,417		(744,292,153	)		7,703,765,943			(770,913,875	)
Preferred stocks	$	7,200,371			(335,720	)		17,660,512		(2,308,905	)		24,860,883			(2,644,625	)
Common stocks		41,621,788			(1,879,515	)		62,696,099		(10,858,601	)		104,317,887			(12,738,116	)
Total stocks	$	48,822,159			(2,215,235	)		80,356,611		(13,167,506	)		129,178,770			(15,382,741	)
Derivative investments	$	(131,578	)		(663,281	)		—		—			(131,578	)		(663,281	)

	Held in a continuous unrealized loss position
	Less than 12 months						12 months or more					Total
	Estimated			Unrealized			Estimated		Unrealized			Estimated			Unrealized
2022	fair value			losses			fair value		losses			fair value			losses
Bonds:
U.S. Treasury securities and obligations of U.S. government corporations and agencies:
U.S. government	$	28,604,234			(543,514	)		34,571,641		(4,761,014	)		63,175,875			(5,304,528	)
Mortgage-backed securities		1,191,678,001			(125,845,941	)		431,544,176		(118,290,895	)		1,623,222,177			(244,136,836	)
Corporate and other securities		6,184,491,557			(518,223,923	)		586,808,994		(168,818,527	)		6,771,300,551			(687,042,450	)
Total bonds	$	7,404,773,792			(644,613,378	)		1,052,924,811		(291,870,436	)		8,457,698,603			(936,483,814	)
Preferred stocks	$	19,622,046			(3,349,329	)		3,636,163		(784,792	)		23,258,209			(4,134,121	)
Common stocks		300,400,848			(14,966,534	)		97,086,574		(32,328,082	)		397,487,422			(47,294,616	)
Total stocks	$	320,022,894			(18,315,863	)		100,722,737		(33,112,874	)		420,745,631			(51,428,737	)
Derivative investments	$	(339,958	)		(234,436	)		—		—			(339,958	)		(234,436	)

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

Bonds held in an unrealized loss position improved during 2023. The interest rate environment was volatile throughout the year, though the Company spent a meaningful amount of time in a higher rate environment. Yields on the 10-year U.S. Treasury Note began and ended the year at approximately 3.88%, though it was high as 5.00% at one point. Bonds purchased in the latter half of 2023 generally moved into an unrealized gain position (not shown in the table above). This contrasts with 2022 when rates moved higher during the year, resulting in 2022 bond acquisitions having an unrealized loss at the end of 2022. The overall unrealized loss on bonds improved by $160 million, a move driven by multiple factors including portfolio age, credit spread volatility, and interest rate volatility.

A number of the common stock holdings in an unrealized loss position at December 31, 2022 moved into an unrealized gain position as equity markets performed well throughout the year.

The derivative investments are actions taken by an outside manager within the constraints of the investment policy statement. This is a relatively small holding that can fluctuate with market conditions.

Securities with material unrealized losses resulting from fundamental deterioration in quality were reviewed in accordance with the Company’s impairment policy as described in note 1(f) and were deemed not to be other than temporarily impaired.

Due to the subjective nature of the Company’s analysis and estimates of fair value along with the judgment that must be applied in the analysis, it is possible that the Company could reach a different conclusion whether or not to impair a security if it had access to additional information. Investment securities are exposed to various risks, such as interest rate, market and credit. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is reasonably possible that changes in risks in the near term could result in other-than-temporary impairments recorded in the statutory statements of earnings.

The scheduled maturity distribution of the long-term bond portfolio at December 31, 2023 follows. Expected maturities may differ from scheduled contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties.

	Book/adjusted		Estimated
	carry value		fair value
Due in one year or less	$	580,294,503		574,610,603
Due after one year through five years		2,867,218,878		2,784,872,979
Due after five years through ten years		3,205,012,170		3,010,540,759
Due after ten years		1,694,060,004		1,521,359,445
		8,346,585,555		7,891,383,786
Mortgage-backed and hybrid securities		2,098,858,954		1,866,477,622
	$	10,445,444,509		9,757,861,408

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

The Company owns certain assets which are considered to be restricted or not under the Company’s exclusive control. As required by law, the Company has investments on deposit with governmental authorities and banks for the protection of policyholders. In addition, the Company owns common stock shares of Federal Home Loan Bank (FHLB) which enables the Company, as a member, to borrow funds for future investment strategies and for other liquidity needs. The Company also has pledged assets as collateral to the FHLB for the purpose of backing funding agreements and notes payable.

At December 31, 2023 and 2022, the restricted assets of the Company were as follows:

	2023				2022
	Book/adjusted		Fair		Book/adjusted		Fair
	carry value		value		carry value		value
On deposit with states	$	5,941,875		5,729,141		5,796,481		5,515,439
Collateral held under security lending agreements		81,122,573		81,122,573		—		—
FHLB – Membership stock		6,310,900		6,310,900		6,292,300		6,292,300
FHLB – Activity stock		4,448,000		4,448,000		6,088,000		6,088,000
FHLB – Excess stock		4,468,300		4,468,300		2,096,700		2,096,700
Pledged as collateral to FHLB		272,787,863		235,793,156		261,778,957		231,631,319
Total restricted assets	$	375,079,511		337,872,070		282,052,438		251,623,758

Maximum pledged as collateral to FHLB during reporting period	$	275,509,681		243,797,584		292,122,074		277,025,298

The credit quality of the long-term bond portfolio at December 31, 2023 and 2022 follows. The quality ratings represent NAIC designations.

	2023					2022
	Book/adjusted					Book/adjusted
	carry value		Percentage			carry value		Percentage
Class 1 – highest quality	$	6,235,488,338		59.7	%	$	5,960,658,763		57.3	%
Class 2 – high quality		3,860,554,721		37.0			3,995,032,084		38.4
Class 3 – medium quality		206,286,770		2.0			306,534,410		2.9
Class 4 – low quality		48,170,377		0.4			49,957,283		0.5
Class 5 – lower quality		93,894,837		0.9			97,335,311		0.9
Class 6 – in or near default		1,049,466		—			534,663		—
	$	10,445,444,509		100.0	%	$	10,410,052,514		100.0	%

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

Bonds with ratings ranging from AAA/Aaa to BBB/Baa3, as assigned by a rating service such as Standard and Poor’s Corporation or Moody’s Investment Services, are generally regarded as investment grade securities. The NAIC regards A ratings as Class 1 (highest quality), BBB/Baa ratings as Class 2 (high quality), BB/Ba ratings as Class 3 (medium quality), B ratings as Class 4 (low quality), all C ratings as Class 5 (lower quality), and D ratings as Class 6 (in or near default).

(b)

Mortgage Loans

At December 31, 2023 and 2022, the Company’s mortgage loan portfolio consisted of the following:

	2023		2022
Commercial	$	2,071,054,939		1,943,867,357
Residential		1,631,737		1,831,745
Total	$	2,072,686,676		1,945,699,102
Average loan balance	$	3,940,469		3,852,869

The mortgage loan portfolio is monitored on an individual loan basis by use of operating statement reviews, property inspection reports, and debt service coverage reports and is well diversified by property type, geographic location, and loans to any one borrower.

	Percentage of Portfolio
Mortgage loans by property type	2023			2022
Offices		30.5	%		31.1	%
Warehouse/Industrial		30.3			31.3
Apartments		18.9			18.1
Retail		17.9			16.8
Other		2.3			2.6
Residential		0.1			0.1
Total		100.0	%		100.0	%

	Percentage of Portfolio
Mortgage loans by geographic location	2023		2022
South Atlantic	23.2	%	23.7	%
Pacific	19.3		19.3
East North Central	16.4		16.1
Mountain	13.9		13.4
West South Central	13.0		13.0
East South Central	9.5		9.5
Middle Atlantic	4.1		4.5
West North Central	0.4		0.4
New England	0.2		0.1
Total	100.0	%	100.0	%

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

At December 31, 2023 and 2022, the Company had the following percentage of mortgage loans with underlying collateral located in the following states that were greater than 10% of the total:

	2023			2022
Exposure in California		18.00	%		18.60	%
Exposure in Florida		13.50			13.80

The Company maintains a mortgage loan portfolio that consists of first lien mortgage loans. The commercial loans, which were originated by the Company through a network of mortgage bankers, were made only on developed and leased properties. The commercial mortgage loans have a maximum loan-to-value ratio of 75% at the date of origination. The Company generally does not engage in construction lending or land loans.

The minimum and maximum interest rates on mortgage loans originated during 2023 and 2022 were as follows:

	2023			2022
Maximum interest rate		7.45	%		6.85	%
Minimum interest rate		4.99			2.90

As of December 31, 2023, all of the Company’s mortgages were in good standing with no principal or interest payments delinquent more than 90 days.

(c)

Net Investment Income

For the years ended December 31, 2023 and 2022, the sources of investment income of the Company were as follows:

	2023			2022
Bonds	$	428,709,585			401,598,672
Preferred and common stocks		23,076,903			25,773,683
Mortgage loans		71,018,821			69,733,110
Policy loans		44,047,647			42,442,569
Cash, cash equivalents and short-term investments		6,493,847			946,373
Other		50,816,205			43,811,563
Gross investment income		624,163,008			584,305,970
Amortization of interest maintenance reserve		868,269			(3,548,397	)
Investment expenses		(22,023,541	)		(21,892,365	)
Net investment income	$	603,007,736			558,865,208

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(d)

Investment Gains and Losses

For the years ended December 31, 2023 and 2022, the proceeds, gross gains and gross losses from sales, calls, and other disposals on bonds, common stocks, and preferred stocks were as follows:

	Proceeds				Gross gains					Gross losses
	2023		2022		2023		2022			2023		2022
Bonds :
Sales	$	307,684,283		305,493,299		291,505		7,748,369			21,288,691		23,010,969
Calls		113,077,441		201,237,089		399,856		1,129,114			773,927		577,461
Other disposals		612,353,575		655,979,036		14,498		(7,804	)		32,541		375,157
Totals	$	1,033,115,299		1,162,709,424		705,859		8,869,679			22,095,159		23,963,587
Common stock:
Sales	$	425,377,580		586,199,664		44,634,568		54,567,934			24,292,763		49,940,576
Tax free exchange		—		—		—		—			—		—
Other disposals		—		—		—		—			—		—
Totals	$	425,377,580		586,199,664		44,634,568		54,567,934			24,292,763		49,940,576
Preferred stock:
Sales	$	613,903		—		—		—			2,827,964		—
Calls		500,000		525,000		28,146		—			—		13,750
Other disposals		—		4,000,000		—		—			—		—
Totals	$	1,113,903		4,525,000		28,146		—			2,827,964		13,750

(e)

Other-than-temporary impairment (OTTI)

The total other-than-temporary impairment loss recognized in 2023 and 2022 was as follows:

	2023		2022
Bonds	$	648,840		531,463
Limited partnerships		1,975,432		6,233,346
Total	$	2,624,272		6,764,809

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(3)

Aggregate Reserves

Liabilities for the life insurance products principally use the 1958 CSO table assuming interest rates ranging from 2½% to 4½%, the 1980 CSO tables assuming interest rates ranging from 4% to 5%, the 2001 CSO tables assuming interest rates of 3% to 4%, and the 2017 CSO tables assuming interest rates of 3% to 4½%. Life products issued under the 2017 CSO basis are valued under the reserve requirements defined in VM-20 of the Valuation Manual. This includes term policies issued January 1, 2018 and later, as well as term riders and permanent products issued October 1, 2019 and later. Liabilities for most annuities use the 1971 IAM, 1983 Table A, or the Annuity 2000 tables with interest rates ranging from 3% to 8% and the 2012 IAR tables with interest rates ranging from 1½% to 5½%. As of December 31, 2023 and 2022, the following table summarizes the aggregate reserves for the Company:

Line of Business

	2023		2022
Individual life:
Traditional	$	7,054,789,452		6,648,924,337
Universal		810,239,436		843,918,392
Total individual life		7,865,028,888		7,492,842,729
Group life		9,446,007		9,032,816
Total life		7,874,474,895		7,501,875,545
Annuities:
Individual:
Immediate		122,735,183		127,608,152
Deferred		2,450,345,769		2,659,479,625
Total individual annuities		2,573,080,952		2,787,087,777
Group annuities		40,794,634		46,788,483
Total annuities		2,613,875,586		2,833,876,260
Individual supplementary contracts with life contingencies		268,462,372		266,425,175
Other		202,740,935		229,392,852
Accident and health:
Active life – Individual		119,345,490		121,894,928
Active life – Group		1,554		1,554
Claim reserve – Individual		26,951,143		25,907,196
Claim reserve – Group		7,265,270		6,247,879
Total accident and health aggregate reserves		153,563,457		154,051,557
Supplementary contracts without life contingencies		131,737,002		136,564,844
Total aggregate reserves	$	11,244,854,247		11,122,186,233

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

Withdrawal characteristics of annuity actuarial reserves, deposit type contract funds, and life actuarial reserves as of December 31, 2023, were as follows:

(a)

Individual Annuities

			Separate
			account		Separate
	General		with		account
	account		guarantees		nonguaranteed		Total		% of total
1. Subject to discretionary withdrawal:
(a) With market value adjustment	$	—		—		—		—		—	%
(b) At book value less current surrender
charge of 5% or more		35,358,397		—		—		35,358,397		1.242
(c) At fair value		—		—		5,027,772		5,027,772		0.177
(d) Total with market value adjustment
or at fair value (Total of a through c)		35,358,397		—		5,027,772		40,386,169		1.419
(e) At book value without adjustment
(minimal or no charge or adjustment)		2,414,987,374		—				2,414,987,374		84.838
2. Not subject to discretionary withdrawal		391,197,553		—		—		391,197,553		13.743
3. Total (gross: direct + assumed)		2,841,543,324		—		5,027,772		2,846,571,096		100.000
4. Reinsurance ceded		—		—		—		—
5. Total (net) (3) – (4)	$	2,841,543,324		—		5,027,772		2,846,571,096
6. Amount in A(1)b that will move to A(1)e
next year	$	35,358,397		—		—		35,358,397

(b)

Group Annuities

			Separate
			account		Separate
	General		with		account
	account		guarantees		nonguaranteed		Total		% of total
1. Subject to discretionary withdrawal:
(a) With market value adjustment	$	2,031,840		—		—		2,031,840		4.981	%
(b) At book value less current surrender
charge of 5% or more		—		—		—		—		—
(c) At fair value		—		—		—		—		—
(d) Total with market value adjustment
or at fair value (Total of a through c)		2,031,840		—		—		2,031,840		4.981
(e) At book value without adjustment
(minimal or no charge or adjustment)		37,968,900		—		—		37,968,900		93.073
2. Not subject to discretionary withdrawal		793,894		—		—		793,894		1.946
3. Total (gross: direct + assumed)		40,794,634		—		—		40,794,634		100.000
4. Reinsurance ceded		—		—		—		—
5. Total (net) (3) – (4)	$	40,794,634		—		—		40,794,634
6. Amount in A(1)b that will move to A(1)e
next year	$	—		—		—		—

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(c)

Deposit-Type Contracts

			Separate
			account		Separate
	General		with		account
	account		guarantees		nonguaranteed		Total		% of total
1. Subject to discretionary withdrawal:
(a) With market value adjustment	$	461,968,428		—		—		461,968,428		55.936	%
(b) At book value less current surrender
charge of 5% or more		—		—		—		—		—
(c) At fair value		—		—		—		—		—
(d) Total with market value adjustment
or at fair value (Total of a through c)		461,968,428		—		—		461,968,428		55.936
(e) At book value without adjustment
(minimal or no charge or adjustment)		363,013,702		—		—		363,013,702		43.954
2. Not subject to discretionary withdrawal		906,964		—		—		906,964		0.110
3. Total (gross: direct + assumed)		825,889,094		—		—		825,889,094		100.000
4. Reinsurance ceded		—		—		—		—
5. Total (net) (3) – (4)	$	825,889,094		—		—		825,889,094
6. Amount in A(1)b that will move to A(1)e
next year	$	—		—		—		—

A reconciliation of annuity actuarial reserves and deposit type contract funds as of December 31, 2023 is as follows:

	Amount
Life and accident and health annual statement:
1. Exhibit 5, annuities section, total (net)	$	2,613,875,586
2. Exhibit 5, supplementary contracts with life contingencies section, total (net)		268,462,372
3. Exhibit of deposit-type contracts, line 14, column 1		825,889,094
4. Subtotal		3,708,227,052
Separate account assets statement:
5. Exhibit 3, line 0299999, column 2		5,027,772
6. Exhibit 3, line 0399999, column 2		—
7. Policyholder dividend and coupon accumulations		—
8. Policyholder premiums		—
9. Guaranteed interest contracts		—
10. Other contract deposit funds		—
11. Subtotal		5,027,772
12. Combined total	$	3,713,254,824

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(d)

Life Contracts

		General account			Separate account nonguaranteed
		Account			Account
		value	Cash value	Reserve	value	Cash value	Reserve
A. Subject to discretionary withdrawal:
(1) Term policies with cash value	$	—	—	—	—	—	—
(2) Universal life		805,250,510	804,984,903	809,247,560	—	—	—
(3) Universal life with secondary guarantees		—	—	—	—	—	—
(4) Indexed universal life		—	—	—	—	—	—
(5) Indexed universal life with secondary guarantees		—	—	—	—	—	—
(6) Indexed life		—	—	—	—	—	—
(7) Other permanent cash value life insurance		—	5,043,503,225	5,707,329,279	—	—	—
(8) Variable life		—	—	—	—	—	—
(9) Variable universal life		1,766,731	1,766,731	1,785,927	3,292,826	3,292,826	3,292,826
(10) Miscellaneous reserves		—	—	—	—	—	—
B. Not Subject to discretionary withdrawal:
(1) Term policies without cash
value		XXX	XXX	1,474,997,069	XXX	XXX	—
(2) Accidental death benefits		XXX	XXX	610,190	XXX	XXX	—
(3) Disability – Active lives		XXX	XXX	19,181,601	XXX	XXX	—
(4) Disability – Disabled lives		XXX	XXX	71,035,214	XXX	XXX	—
(5) Miscellaneous reserves		XXX	XXX	113,288,386	XXX	XXX	—
C. Total (gross: direct + assumed)		807,017,241	5,850,254,859	8,197,475,226	3,292,826	3,292,826	3,292,826
D. Reinsurance ceded		—	—	120,259,396	—	—	—
E. Total (net) (C) – (D)	$	807,017,241	5,850,254,859	8,077,215,830	3,292,826	3,292,826	3,292,826

A reconciliation of the life actuarial reserves as of December 31, 2023 is as follows

	Amount
Life and accident and health annual statement:
(1) Exhibit 5, life insurance section, total (net)	$	7,874,474,895
(2) Exhibit 5, accidental death benefits section, total (net)		610,190
(3) Exhibit 5, disability – active lives section, total (net)		19,181,602
(4) Exhibit 5, disability – disabled lives section, total (net)		69,692,885
(5) Miscellaneous reserves section, total (net)		113,256,258
(6) Subtotal		8,077,215,830
Separate accounts annual statement:
(7) Exhibit 3, line 0199999, column 2		3,292,826
(8) Exhibit 3, line 0499999, column 2		—
(9) Exhibit 3, line 0599999, column 2		—
(10) Subtotal (Lines 7–9)		3,292,826
(11) Combined total (6 and 10)	$	8,080,508,656

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

Withdrawal characteristics of annuity actuarial reserves, deposit type contract funds, and life actuarial reserves as of December 31, 2022, were as follows:

(a)

Individual Annuities

			Separate
			account		Separate
	General		with		account
	account		guarantees		nonguaranteed		Total		% of total
1. Subject to discretionary withdrawal:
(a) With market value adjustment	$	—		—		—		—		—	%
(b) At book value less current surrender
charge of 5% or more		37,772,139		—		—		37,772,139		1.235
(c) At fair value		—		—		4,637,213		4,637,213		0.152
(d) Total with market value adjustment
or at fair value (Total of a through c)		37,772,139		—		4,637,213		42,409,352		1.387
(e) At book value without adjustment
(minimal or no charge or adjustment)		2,621,707,486		—		—		2,621,707,486		85.729
2. Not subject to discretionary withdrawal		394,033,327		—		—		394,033,327		12.885
3. Total (gross: direct + assumed)		3,053,512,952		—		4,637,213		3,058,150,165		100.000
4. Reinsurance ceded		—		—		—		—
5. Total (net) (3) – (4)	$	3,053,512,952		—		4,637,213		3,058,150,165
6. Amount in A(1)b that will move to A(1)e
next year	$	37,772,139		—		—		37,772,139

(b)

Group Annuities

			Separate
			account		Separate
	General		with		account
	account		guarantees		nonguaranteed		Total		% of total
1. Subject to discretionary withdrawal:
(a) With market value adjustment	$	4,039,255		—		—		4,039,255		8.633	%
(b) At book value less current surrender
charge of 5% or more		—		—		—		—		—
(c) At fair value		—		—		—		—		—
(d) Total with market value adjustment
or at fair value (Total of a through c)		4,039,255		—		—		4,039,255		8.633
(e) At book value without adjustment
(minimal or no charge or adjustment)		41,934,767		—		—		41,934,767		89.626
2. Not subject to discretionary withdrawal		814,461		—		—		814,461		1.741
3. Total (gross: direct + assumed)		46,788,483		—		—		46,788,483		100.000
4. Reinsurance ceded		—		—		—		—
5. Total (net) (3) – (4)	$	46,788,483		—		—		46,788,483
6. Amount in A(1)b that will move to A(1)e
next year	$	—		—		—		—

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(c)

Deposit-Type Contracts

			Separate
			account		Separate
	General		with		account
	account		guarantees		nonguaranteed		Total		% of total
1. Subject to discretionary withdrawal:
(a) With market value adjustment	$	460,216,259		—		—		460,216,259		54.936	%
(b) At book value less current surrender
charge of 5% or more		—		—		—		—		—
(c) At fair value		—		—		—		—		—
(d) Total with market value adjustment
or at fair value (Total of a through c)		460,216,259		—		—		460,216,259		54.936
(e) At book value without adjustment
(minimal or no charge or adjustment)		376,459,414		—		—		376,459,414		44.938
2. Not subject to discretionary withdrawal		1,057,835		—		—		1,057,835		0.126
3. Total (gross: direct + assumed)		837,733,508		—		—		837,733,508		100.000
4. Reinsurance ceded		—		—		—		—
5. Total (net) (3) – (4)	$	837,733,508		—		—		837,733,508
6. Amount in A(1)b that will move to A(1)e
next year	$	—		—		—		—

A reconciliation of annuity actuarial reserves and deposit type contract funds as of December 31, 2022 is as follows:

	Amount
Life and accident and health annual statement:
1. Exhibit 5, annuities section, total (net)	$	2,833,876,260
2. Exhibit 5, supplementary contracts with life contingencies section, total (net)		266,425,175
3. Exhibit of deposit-type contracts, line 14, column 1		837,733,508
4. Subtotal		3,938,034,943
Separate account assets statement:
5. Exhibit 3, line 0299999, column 2		4,637,213
6. Exhibit 3, line 0399999, column 2		—
7. Policyholder dividend and coupon accumulations		—
8. Policyholder premiums		—
9. Guaranteed interest contracts		—
10. Other contract deposit funds		—
11. Subtotal		4,637,213
12. Combined total	$	3,942,672,156

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(d)

Life Contracts

		General account			Separate account nonguaranteed
		Account			Account
		value	Cash value	Reserve	value	Cash value	Reserve
A. Subject to discretionary withdrawal:
(1) Term policies with cash value	$	—	—	—	—	—	—
(2) Universal life		839,075,470	838,608,531	843,049,763	—	—	—
(3) Universal life with secondary guarantees		—	—	—	—	—	—
(4) Indexed universal life		—	—	—	—	—	—
(5) Indexed universal life with secondary guarantees		—	—	—	—	—	—
(6) Indexed life		—	—	—	—	—	—
(7) Other permanent cash value life insurance		—	4,782,930,023	5,395,996,133	—	—	—
(8) Variable life		—	—	—	—	—	—
(9) Variable universal life		1,814,460	1,814,460	1,833,223	2,935,321	2,935,321	2,935,321
(10) Miscellaneous reserves		—	—	—	—	—	—
B. Not Subject to discretionary withdrawal:
(1) Term policies without cash value		XXX	XXX	1,371,959,318	XXX	XXX	—
(2) Accidental death benefits		XXX	XXX	664,784	XXX	XXX	—
(3) Disability – Active lives		XXX	XXX	18,220,572	XXX	XXX	—
(4) Disability – Disabled lives		XXX	XXX	72,573,839	XXX	XXX	—
(5) Miscellaneous reserves		XXX	XXX	139,526,581	XXX	XXX	—
C. Total (gross: direct + assumed)		840,889,930	5,623,353,014	7,843,824,213	2,935,321	2,935,321	2,935,321
D. Reinsurance ceded		—	—	112,555,816	—	—	—
E. Total (net) (C) – (D)	$	840,889,930	5,623,353,014	7,731,268,397	2,935,321	2,935,321	2,935,321

A reconciliation of the life actuarial reserves as of December 31, 2022 is as follows:

	Amount
Life and accident and health annual statement:
(1) Exhibit 5, life insurance section, total (net)	$	7,501,875,545
(2) Exhibit 5, accidental death benefits section, total (net)		664,784
(3) Exhibit 5, disability – active lives section, total (net)		18,220,572
(4) Exhibit 5, disability – disabled lives section, total (net)		71,011,748
(5) Miscellaneous reserves section, total (net)		139,495,748
(6) Subtotal		7,731,268,397
Separate accounts annual statement:
(7) Exhibit 3, line 0199999, column 2		2,935,321
(8) Exhibit 3, line 0499999, column 2		—
(9) Exhibit 3, line 0599999, column 2		—
(10) Subtotal (Lines 7–9)		2,935,321
(11) Combined total (6 and 10)	$	7,734,203,718

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(4)

Policy and Contract Claims and Liabilities

Activity in the liability for unpaid accident and health claims and claims adjustment expenses is summarized in the following table. The liability for unpaid accident and health claims and claims adjustment expenses includes policy and contract claims in process and the corresponding claims reserve. These amounts are included as a component of the aggregate reserve for accident and health contracts and liability for policy and contract claims presented in the accompanying statutory statements of admitted assets, liabilities and stockholders’ equity.

	2023		2022
Balance, January 1	$	118,255,664		120,722,103
Less reinsurance recoverables		84,359,680		85,482,076
Net balance, January 1		33,895,984		35,240,027
Incurred related to:
Current year		9,875,804		9,715,453
Prior year		2,580,290		(2,170,385	)
Total incurred		12,456,094		7,545,068
Paid related to:
Current year		1,728,332		1,856,289
Prior year		7,770,376		7,032,822
Total paid		9,498,708		8,889,111
Net balance, December 31		36,853,370		33,895,984
Plus reinsurance recoverables		88,270,678		84,359,680
Balance, December 31	$	125,124,048		118,255,664

(5)

Transactions with Affiliates

Through common ownership and directorship, the Company has certain transactions with associated companies. Substantially all of these transactions represent agency-related costs of operations. Agreements with the State and County Farm Bureau organizations in the various states provide for reimbursement to these organizations of the cost of office space and clerical assistance and payments for use of the Farm Bureau name and logo. During the years ended December 31, 2023 and 2022, such fees aggregated $31,204,338 and $30,644,590, respectively, and are included in general insurance expenses in the statutory statements of earnings.

At December 31, 2023 and 2022, net amounts due to State and County Farm Bureaus were $990,100 and $1,485,691, respectively.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(6)

Advances on Funding Agreements

The Company is a member of the FHLB of Dallas. Through its membership, the Company has participated in prior year funding agreements with the FHLB, the most recent being in 2017. The Company did not have any funding agreements with the FHLB as of December 31, 2023 and 2022. There was no maximum amount of aggregate borrowing on FHLB funding agreements during the reporting periods ended December 31, 2023 and 2022.

(7)

Notes Payable

The Company’s liability for borrowed money related to borrowings from the FHLB amounted to $140,500,000 and $180,500,000 as of December 31, 2023 and 2022, respectively. The debt is fixed-rate/fixed-term with the principal due at maturity and is secured with FHLB eligible collateral (U.S. Treasury Notes and/or Agency Pass-Through). Interest is paid monthly at the contracted rate with total interest expense during 2023 and 2022 of $4,003,915 and $4,057,554, respectively, with $234,204 and $334,210 accrued at December 31, 2023 and 2022, respectively. There are no scheduled payments with the balloon payments due at maturity and no sinking fund requirements. Further details are presented below:

	Face		Rate of				Carrying value December 31
Date of issue	amount		interest			Maturity date	2023		2022
3/29/2018	$	40,000,000		3.00	%	12/29/2023	$	—		40,000,000
3/16/2020		38,000,000		1.82		03/16/2026		38,000,000		38,000,000
5/29/2020		40,000,000		1.90		6/1/2027		40,000,000		40,000,000
4/15/2021		22,500,000		1.85		4/14/2031		22,500,000		22,500,000
2/25/2022		40,000,000		2.35		2/26/2029		40,000,000		40,000,000
								140,500,000		180,500,000
						Accrued Interest		234,204		334,210
							$	140,734,204		180,834,210

The Company has determined the estimated maximum borrowing capacity as $488,652,907 at December 31, 2023 compared to $468,455,154 at December 31, 2022. The Company has calculated this amount as 15% of unassigned surplus. The Company does not have any repurchase agreements as of December 31, 2023.

The aggregate maturities of debt for each of the five years subsequent to December 31, 2023 are as follows:

2024	$	—
2025		—
2026		38,000,000
2027		40,000,000
2028		—

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(8)

Retirement Plans

The Company has a noncontributory defined benefit pension plan, a contributory defined contribution plan and postretirement benefit plans. All plans cover substantially all employees, subject to certain eligibility requirements such as age and length of service. The Company applies SSAP No. 102, Pensions, and SSAP No. 92, Postretirement Benefits Other Than Pensions.

(a)

Pension Plan

The Company presently maintains a noncontributory defined benefit pension plan covering all employees who have met the eligibility requirements. Benefits are based on a participant’s years of service and average monthly salary. The Company has agreed to make contributions to provide assets with which to pay retirement benefits. The assumed interest rates for funding are based on the segment rates published by the Internal Revenue Service with adjustments as allowed under applicable federal regulation. The projected unit credit cost method is the actuarial method used in funding the plan.

The projected benefit obligation, as determined by consulting actuaries (computed using the assumptions on the following page), and the net assets available for benefits as of December 31, 2023 and 2022 follow:

	2023			2022
Change in plan assets:
Fair value of plan assets at January 1	$	240,191,299			302,296,419
Actual return on plan assets		21,155,610			(49,901,675	)
Employer contributions		—			12,800,000
Benefits paid and transfers		(14,366,569	)		(25,003,445	)
Fair value of plan assets at December 31	$	246,980,340			240,191,299
Change in projected benefit obligation:
Benefit obligation at January 1	$	200,013,709			272,746,744
Service cost		6,880,953			10,359,582
Interest cost		9,741,428			7,841,224
Actuarial loss (gain)		1,049,850			(65,930,396	)
Benefits paid and transfers		(14,366,569	)		(25,003,445	)
Benefit obligation at December 31	$	203,319,371			200,013,709
Funded status:
Unrecognized actuarial loss	$	(25,772,682	)		(31,176,908	)
Prepaid benefit cost		69,433,651			71,354,498
Over funded status	$	43,660,969			40,177,590

The accumulated benefit obligation for the pension plan was $166,168,036 and $164,612,337 at December 31, 2023 and 2022, respectively.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

For 2022, settlement accounting was required under SSAP No. 102 since single sum benefit payments exceeded the sum of service cost and interest cost during the fiscal year. Settlement accounting requires the immediate recognition of a portion of the previously unrecognized actuarial gain or loss as of the measurement date. Therefore, a settlement loss was recognized as a component of the 2022 net periodic benefit cost. There was no settlement cost recognized in 2023.

The components of pension costs and significant actuarial assumptions for the years ended December 31, 2023 and 2022 were as follows:

	2023			2022
Components of pension cost
Service cost	$	6,880,953			10,359,582
Interest cost		9,741,428			7,841,224
Expected return on plan assets		(15,294,065	)		(18,454,697	)
Recognized actuarial loss		592,531			154,522
Recognized settlement loss		—			3,147,553
Net periodic benefit cost	$	1,920,847			3,048,184

	2023			2022
Actuarial assumptions as of December 31
Discount rate		4.89	%		5.06	%
Expected return of plan assets		5.86			6.50
Rate of compensation increase		5.00			5.00
Mortality table		Pri-2012 using scale MP2021			Pri-2012 using scale MP2021
Postretirement lump sum/annuity purchase assumptions
		IRS Mortality and Interest Table for Section 417(e)(3)			IRS Mortality and Interest Table for Section 417(e)(3)

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(i)

Plan Assets

The Company’s pension plan weighted average asset allocation at December 31 was as follows:

	2023			2022
Asset category:
Cash and cash equivalents		5	%		3	%
Debt securities		61			32
Common stock mutual funds		18			40
Real estate		10			13
Other		6			12
Total		100	%		100	%

Plan assets for the defined benefit plan are a diversified mix of traditional asset classes. Investments in U.S. and foreign equity securities, fixed income securities, and cash are made to maximize long-term returns while recognizing the need for adequate liquidity to meet on-going benefit and administrative obligations. Risk tolerance of unexpected investment and actuarial outcomes is frequently evaluated by understanding the pension plan’s liability characteristics. This is performed through forecasting and assessing ranges of investment outcomes over short and long-term horizons and by assessing the Company’s financial condition and its future potential obligations from both the pension and general corporate requirements. A comprehensive asset/liability study was conducted in 2017 by Towers Watson. Equity investments, both active and passively managed, are used primarily to increase overall plan returns. Fixed income investments provide diversification benefits and liability hedging attributes that are desirable, especially in falling interest rate environments.

Asset allocations and investment performance are formally reviewed quarterly by the Pension Committee. The Pension Committee of the Company has delegated authority to the Pension Investment Committee to provide oversight and supervision with respect to the investment and management of the assets in the Plan.

The Company selects the expected long-term rate of return on assets assumption in consultation with the enrolled actuary. This rate is intended to reflect the average rate of earnings expected to be earned on the funds invested or to be invested to provide plan benefits. It is estimated based on many factors including the expected forecast for inflation, risk premiums for each asset class, expected asset allocation, current and future financial market conditions, and diversification and rebalancing strategies. Historical return patterns and correlations, consensus return forecasts and other relevant financial factors are analyzed to check for reasonableness and appropriateness. Each year the Pension Committee meets with the enrolled actuary to review all actuarial assumptions.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

The fair value of the Company’s pension plan assets at December 31, 2023 and 2022, by asset category classified using the fair value measurement hierarchy, as well as assets measured at NAV as a practical expedient, are shown in the table below. See note 14, Fair Value Measurements, for fair value hierarchy level definitions.

	2023
							NAV as a
							practical
	Level 1		Level 2		Level 3		expedient*		Total
Cash and cash equivalents	$	—		11,947,581		—		—		11,947,581
Equity funds		—		45,108,243		—		—		45,108,243
Fixed income:
U.S. government bonds and agencies		—		149,138,326		—		—		149,138,326
Real estate:
Real estate funds		—		—		—		25,062,152		25,062,152
Limited partnerships		—		—		—		451,582		451,582
Alternative credit funds		—		—		—		15,272,456		15,272,456
Total pension plan assets	$	—		206,194,150		—		40,786,190		246,980,340

	2022
							NAV as a
							practical
	Level 1		Level 2		Level 3		expedient*		Total
Cash and cash equivalents	$	—		7,292,749		—		—		7,292,749
Equity funds		—		95,759,236		—		—		95,759,236
Fixed income:
Fixed income funds		—		58,179,209		—		—		58,179,209
U.S. government bonds and agencies		—		19,279,739		—		—		19,279,739
Real estate:
Real estate funds		—		—		—		30,127,318		30,127,318
Limited partnerships		—		—		—		581,070		581,070
Alternative credit funds		—		—		—		28,971,978		28,971,978
Total pension plan assets	$	—		180,510,933		—		59,680,366		240,191,299

Real estate funds, limited partnerships, and alternative credit funds are reported at the NAV as determined by the investment manager, which is used as a practical expedient to estimate the fair value. Subject to certain restrictions, real estate fund redemptions may be made quarterly via redemption request, giving a 30 day notice, and alternative credit fund redemptions may be made monthly via redemption request, giving a 30 day notice. Limited partnerships have no requested redemption feature.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(ii)

Contributions

The acceptable range of contributions to the plan is determined each year by the enrolled actuary. In 2024, the Company does not expect to contribute to the plan. However, the actual amount of the contribution will be determined based on the plan’s funded status, personnel experience, pay increases, assumption changes, and return on plan assets as of the measurement date, which is the July 1 valuation date.

(iii)

Projected Benefit Payments

The following fiscal year pension plan benefit payments, which reflect expected future service, are expected to be paid:

	Projected
	benefit payments
Year:
2024	$	15,091,516
2025		14,404,608
2026		14,456,701
2027		14,820,184
2028		15,048,153
2029–2033		73,601,656

(b)

Defined Contribution Plan

The Company has adopted a 401(k) Plan for the benefit of its eligible employees. Participants may defer up to 50% of their annual salary on a tax deferred basis. However, total deferral in any taxable year may not exceed a dollar limit which is set by law. The Company currently matches the deferred contributions up to 4%. Assets are maintained in a separate trust and are not part of Company assets. The cost of the plan to the Company was $1,874,237 and $1,773,515 in 2023 and 2022, respectively. The fair value of plan assets was $109,234,377 and $97,982,471 in 2023 and 2022, respectively.

(c)

Postretirement Benefit Plans

The Company currently offers life and health insurance benefits to retired employees. Employees are eligible for life insurance coverage if they retire on or after age 65 or retire early with 15 years of service. Life insurance benefits are generally set at a fixed amount. Employees are eligible for postretirement health coverage based on age and service requirements. Prior to Medicare eligibility, the Company will pay a portion of the monthly health insurance premium for the retiree and eligible spouse. For retired employees that are eligible for Medicare, the Company will reimburse premiums in individual Health Retirement Accounts up to a maximum monthly amount. The Company paid $712,151 and $740,178 in premiums on behalf of retired employees in 2023 and 2022, respectively.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

The projected benefit obligation for the Company’s employee medical payments and life insurance postretirement benefit plans, none of which have been funded, is shown in the table below. Also provided is the funded status and components of the benefit expense, as determined by consulting actuaries:

	2023			2022
Change in projected benefit obligation:
Benefit obligation at January 1	$	30,601,887			41,119,483
Service cost		756,029			1,238,732
Interest cost		1,527,960			1,234,187
Actuarial loss (gain)		(242,221	)		(12,250,337	)
Benefits paid		(712,152	)		(740,178	)
Benefit obligation at December 31	$	31,931,503			30,601,887

Funded status:
Unrecognized prior service credit	$	7,186,631			8,526,533
Unrecognized actuarial loss		570,538			427,722
Accrued liability		(39,688,672	)		(39,556,142	)
Under funded status	$	(31,931,503	)		(30,601,887	)

	2023			2022
Components of postretirement benefit expense
Service cost	$	756,029			1,238,732
Interest cost		1,527,960			1,234,187
Amortization of prior service credit		(1,339,902	)		(1,319,856	)
Amortization of net actuarial loss		(99,405	)		555,961
Postretirement benefit expense	$	844,682			1,709,024

The postretirement benefit expense is included in the accompanying statutory statements of earnings as general insurance expenses.

The discount rate used in determining the accumulated postretirement benefit obligation was 4.93% and 5.11% in 2023 and 2022, respectively. The healthcare cost trend rate for 2023 expense was 6.6% graded to 4.5% for 2030 and beyond for employees under age 65. The assumed healthcare cost trend rate used in measuring the accumulated postretirement benefit obligation was 7.6% for 2024 graded to 4.5% in 2032 and beyond for employees under age 65.

Additionally, the Company has other unfunded, defined, postretirement benefit and deferred compensation plans (other postretirement benefit plans) for employees and nonemployee directors of the Company. The recorded liability of these plans was $36,887,015 and $32,991,485 at December 31, 2023 and 2022, respectively. The recorded net periodic benefit costs of these plans was $2,852,689 and $3,345,633 during the years ended December 31, 2023 and 2022, respectively.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

The expected future contributions and benefit payments for postretirement benefits follow:

	Employee		Employee		Other
	medical		life		postretirement
	payments		insurance		benefits
Year:
2024	$	1,178,794		207,823		4,447,239
2025		1,244,844		225,091		4,186,325
2026		1,286,765		244,605		4,111,954
2027		1,355,673		264,921		3,985,550
2028		1,448,247		284,730		2,818,416
2029–2033		7,857,361		1,744,063		13,102,770

Beginning January 1, 2009, prescription drug coverage was eliminated from the postretirement medical benefit plan for Medicare eligible retirees. Medicare eligible retirees are encouraged to sign up for Medicare Part D. The postretirement premium for Medicare eligible retirees was reduced appropriately. The gross benefit payments for all retirees (including prescription drug benefits) paid in fiscal 2023 and fiscal 2022 was $970,115 and $797,252, respectively. No amounts of subsidies were received in fiscal 2023 nor are any amounts expected to be received in fiscal 2024.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(9)

Federal Income Taxes

The net deferred tax asset at December 31, 2023 and 2022, and the change is comprised of the following components:

	2023
	Ordinary		Capital			Total
Calculation of the net deferred tax asset:
(a) Gross deferred tax assets	$	313,802,460		16,668,132			330,470,592
(b) Statutory valuation allowance adjustments		—		—			—
(c) Adjusted gross deferred tax assets		313,802,460		16,668,132			330,470,592
(d) Deferred tax assets nonadmitted		80,521,827		—			80,521,827
(e) Subtotal net admitted deferred tax asset		233,280,633		16,668,132			249,948,765
(f) Deferred tax liabilities		92,800,870		100,626,316			193,427,186
(g) Net admitted deferred tax asset (net deferred tax liability)	$	140,479,763		(83,958,184	)		56,521,579

	2022
	Ordinary		Capital			Total
Calculation of the net deferred tax asset:
(a) Gross deferred tax assets	$	299,559,065		16,842,429			316,401,494
(b) Statutory valuation allowance adjustments		—		—			—
(c) Adjusted gross deferred tax assets		299,559,065		16,842,429			316,401,494
(d) Deferred tax assets nonadmitted		89,714,750		—			89,714,750
(e) Subtotal net admitted deferred tax asset		209,844,315		16,842,429			226,686,744
(f) Deferred tax liabilities		93,337,715		78,256,455			171,594,170
(g) Net admitted deferred tax asset (net deferred tax liability)	$	116,506,600		(61,414,026	)		55,092,574

	Change
	Ordinary			Capital			Total
Calculation of the net deferred tax asset:
(a) Gross deferred tax assets	$	14,243,395			(174,297	)		14,069,098
(b) Statutory valuation allowance adjustments		—			—			—
(c) Adjusted gross deferred tax assets		14,243,395			(174,297	)		14,069,098
(d) Deferred tax assets nonadmitted		(9,192,923	)		—			(9,192,923	)
(e) Subtotal net admitted deferred tax asset		23,436,318			(174,297	)		23,262,021
(f) Deferred tax liabilities		(536,845	)		22,369,861			21,833,016
(g) Net admitted deferred tax asset (net deferred tax liability)	$	23,973,163			(22,544,158	)		1,429,005

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

Management has reviewed whether a valuation allowance is needed on its gross deferred tax assets reported above. Management believes that for years 2024–2026, it is more likely than not that the results of operations will generate sufficient ordinary taxable income to realize its deferred tax assets on noncapital items. Sufficient ordinary taxable income is also projected beyond 2026 to substantiate the ordinary deferred tax assets likely to be realized in those periods. For capital items, the Company has adequate taxable capital gains available in its invested assets portfolio to allow for the realization of capital deferred tax assets. The Company has also historically generated significant capital gains that could be used for future capital loss carrybacks arising from the realization of deferred tax assets.

The amount of adjusted gross deferred tax assets admitted under each component of SSAP 101 for 2023 and 2022, and the change is comprised of the following components:

	2023
	Ordinary		Capital		Total
The amount of adjusted gross deferred tax assets admitted under each component of SSAP 101, paragraph 11:
(a) Federal income taxes paid in prior years recoverable through loss carrybacks	$	—		198,861		198,861
(b) Adjusted gross DTAs expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation (lesser of 11bi or 11bii):		56,322,718		—		56,322,718
i. Adjusted gross DTAs expected to be realized following the balance sheet date		56,322,718		—		56,322,718
ii. Adjusted gross DTAs allowed per limitation threshold		N/A		N/A		479,914,587
(c) Adjusted gross DTAs (excluding the amount of deferred assets from 2(a) and 2(b) above) offset by gross DTLs		176,957,915		16,469,271		193,427,186
(d) DTA admitted as the result of application of SSAP No. 101, para 11 (a)+(b)-(c)	$	233,280,633		16,668,132		249,948,765

	2022
	Ordinary		Capital		Total
The amount of adjusted gross deferred tax assets admitted under each component of SSAP 101, paragraph 11:
(a) Federal income taxes paid in prior years recoverable through loss carrybacks	$	—		—		—
(b) Adjusted gross DTAs expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation (lesser of 11bi or 11bii):		55,092,574		—		55,092,574
i. Adjusted gross DTAs expected to be realized following the balance sheet date		55,092,574		—		55,092,574
ii. Adjusted gross DTAs allowed per limitation threshold		N/A		N/A		459,906,681
(c) Adjusted gross DTAs (excluding the amount of deferred assets from 2(a) and 2(b) above) offset by gross DTLs		154,751,741		16,842,429		171,594,170
(d) DTA admitted as the result of application of SSAP No. 101, para 11 (a)+(b)-(c)	$	209,844,315		16,842,429		226,686,744

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

	Change
	Ordinary		Capital			Total
The amount of adjusted gross deferred tax assets admitted under each component of SSAP 101, paragraph 11:
(a) Federal income taxes paid in prior years recoverable through loss carrybacks	$	—		198,861			198,861
(b) Adjusted gross DTAs expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation (lesser of 11bi or 11bii):		1,230,144		—			1,230,144
i. Adjusted gross DTAs expected to be realized following the balance sheet date		1,230,144		—			1,230,144
ii. Adjusted gross DTAs allowed per limitation threshold		N/A		N/A			20,007,906
(c) Adjusted gross DTAs (excluding the amount of deferred assets from 2(a) and 2(b) above) offset by gross DTLs		22,206,174		(373,158	)		21,833,016
(d) DTA admitted as the result of application of SSAP No. 101, para 11 (a)+(b)-(c)	$	23,436,318		(174,297	)		23,262,021

Ratios used for threshold limitation in SSAP 101, paragraph 11.b.ii:

	2023			2022
(a) Ratio percentage used to determine recovery period and threshold limitation amount		1,398	%		1,353	%
(b) Adjusted capital and surplus used to determine the threshold limitation amount	$	3,199,430,580			3,066,044,537

The change in deferred income taxes reported in surplus before consideration of nonadmitted assets is comprised of the following components:

	2023			2022			Change
Total deferred tax assets	$	330,470,592			316,401,494			14,069,098
Total deferred tax liabilities		193,427,186			171,594,170			21,833,016
Net deferred tax asset/liability		137,043,406			144,807,324			(7,763,918	)
Tax effect of unrealized gains/(losses)		(97,929,173	)		(75,376,590	)		(22,552,583	)
Change in net deferred income tax (without tax on unrealized gains and losses)	$	234,972,579			220,183,914			14,788,665

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

The main components of deferred taxes as of December 31, 2023 and 2022 and changes are as follows:

	2023
	Ordinary			Capital			Total
Deferred tax assets:
Life reserves	$	189,963,652			—			189,963,652
Deferred acquisition costs		88,877,526			—			88,877,526
Partnerships		—			12,716,833			12,716,833
Policyholder dividends		6,667,488			—			6,667,488
Other employee benefits		12,413,588			—			12,413,588
Asset impairments		—			3,685,832			3,685,832
Nonadmitted assets		14,090,654			—			14,090,654
Other		1,789,552			265,467			2,055,019
Total deferred tax assets		313,802,460			16,668,132			330,470,592
Nonadmitted deferred tax assets		(80,521,827	)		—			(80,521,827	)
Admitted deferred tax assets		233,280,633			16,668,132			249,948,765
Deferred tax liabilities:
Premiums deferred and uncollected		(76,805,915	)		—			(76,805,915	)
Life reserves		(7,174,761	)		—			(7,174,761	)
Accrual of discount on bonds		(6,791,982	)		—			(6,791,982	)
Asset conversions		—			(1,626,530	)		(1,626,530	)
Depreciation differences		(1,847,820	)		—			(1,847,820	)
Unrealized investment gains		—			(97,929,173	)		(97,929,173	)
Other		(180,392	)		(1,070,613	)		(1,251,005	)
Total deferred tax liabilities		(92,800,870	)		(100,626,316	)		(193,427,186	)
Net admitted deferred tax assets	$	140,479,763			(83,958,184	)		56,521,579

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

	2022
	Ordinary			Capital			Total
Deferred tax assets:
Life reserves	$	189,201,042			—			189,201,042
Deferred acquisition costs		81,928,377			—			81,928,377
Partnerships		—			13,215,993			13,215,993
Policyholder dividends		6,184,169			—			6,184,169
Other employee benefits		11,748,449			—			11,748,449
Asset impairments		—			3,486,969			3,486,969
Nonadmitted assets		9,382,400			—			9,382,400
Other		1,114,628			139,467			1,254,095
Total deferred tax assets		299,559,065			16,842,429			316,401,494
Nonadmitted deferred tax assets		(89,714,750	)		—			(89,714,750	)
Admitted deferred tax assets		209,844,315			16,842,429			226,686,744
Deferred tax liabilities:
Premiums deferred and uncollected		(73,809,766	)		—			(73,809,766	)
Life reserves		(10,762,143	)		—			(10,762,143	)
Accrual of discount on bonds		(6,293,609	)		—			(6,293,609	)
Asset conversions		—			(1,920,959	)		(1,920,959	)
Depreciation differences		(2,169,407	)		—			(2,169,407	)
Unrealized investment gains		—			(75,376,589	)		(75,376,589	)
Other		(302,790	)		(958,907	)		(1,261,697	)
Total deferred tax liabilities		(93,337,715	)		(78,256,455	)		(171,594,170	)
Net admitted deferred tax assets	$	116,506,600			(61,414,026	)		55,092,574

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

	Change
	Ordinary			Capital			Total
Deferred tax assets:
Life reserves	$	762,610			—			762,610
Deferred acquisition costs		6,949,149			—			6,949,149
Partnerships		—			(499,160	)		(499,160	)
Policyholder dividends		483,319			—			483,319
Other employee benefits		665,139			—			665,139
Asset impairments		—			198,863			198,863
Nonadmitted assets		4,708,254			—			4,708,254
Other		674,924			126,000			800,924
Total deferred tax assets		14,243,395			(174,297	)		14,069,098
Nonadmitted deferred tax assets		9,192,923			—			9,192,923
Admitted deferred tax assets		23,436,318			(174,297	)		23,262,021
Deferred tax liabilities:
Premiums deferred and uncollected		(2,996,149	)		—			(2,996,149	)
Life reserves		3,587,382			—			3,587,382
Accrual of discount on bonds		(498,373	)		—			(498,373	)
Asset conversions		—			294,429			294,429
Depreciation differences		321,587			—			321,587
Unrealized investment gains		—			(22,552,584	)		(22,552,584	)
Other		122,398			(111,706	)		10,692
Total deferred tax liabilities		536,845			(22,369,861	)		(21,833,016	)
Net admitted deferred tax assets	$	23,973,163			(22,544,158	)		1,429,005

As of December 31, 2023 and 2022, there were no tax credit carryforwards or operating losses available for tax purposes.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

The differences between income tax expense on the statutory statements of earnings and the amounts completed by applying the federal income tax rate to earnings before federal income taxes are listed below.

2023 2022

Amount Percentage Amount Percentage

Current income taxes incurred:

Operations $ 45,325,000 22.0 % $ 39,950,000 23.0 %

Realized investment gains (losses) 1,695,827 0.8 145,088 0.1

Current income taxes incurred 47,020,827 22.8 40,095,088 23.1

Change in deferred income tax (without tax on unrealized gains and losses): (14,788,665 ) (7.2 ) (7,424,967 ) (4.3 )

Total income tax reported $ 32,232,162 15.6 % $ 32,670,121 18.8 %

Income taxes computed at statutory rate:

Operations $ 44,118,340 $ 38,423,690

Realized investment gains (losses) (859,976 ) (1,925,092 )

Income tax including capital gains/losses 43,258,364 21.0 % 36,498,598 21.0 %

Adjustments to income tax:

Tax-exempt interest (1,586,460 ) (0.8 ) (1,548,707 ) (0.9 )

Dividends received deduction (655,434 ) (0.3 ) (737,683 ) (0.4 )

Amortization of IMR (182,336 ) (0.1 ) 745,163 0.4

Nondeductible expenses 3,315,399 1.6 2,663,732 1.5

Foreign tax withheld 94,500 — 48,300 —

Other adjustments on investments (331 ) — (9,153 ) —

Adjustment of prior year’s income taxes:

Under/(over) accrual of PY taxes (1,539,327 ) (0.7 ) (1,081,474 ) (0.6 )

Investment in bonds (107,389 ) (0.1 ) 645,986 0.4

Investment in partnerships 51,540 — (118,019 ) (0.1 )

Other adjustments — — 34,848 —

Adjustment for pension/other benefits (73,140 ) — 4,191,111 2.4

Nonadmitted assets (5,856,131 ) (2.8 ) (2,380,651 ) (1.4 )

Tax credits (4,487,093 ) (2.2 ) (6,281,930 ) (3.5 )

Total income tax reported $ 32,232,162 15.6 % $ 32,670,121 18.8 %

In August 2007, the Internal Revenue Service (IRS) issued Revenue Ruling 2007-54, which would have changed accepted industry and IRS interpretations of the statutes governing the computation of the Dividends Received Deduction (DRD) on separate account assets held in connection with variable annuity and life contracts. However, the ruling was suspended by Revenue Ruling 2007-61, which also announced the IRS’ intention to issue regulations with respect to certain computational aspects of the DRD. Although regulations that represent a substantial change in an interpretation of the law are generally given a prospective effective date, this is not guaranteed. As a result, depending on the ultimate timing and substance of any such regulations, which are unknown at this time, such future regulations could result in the elimination of some or all of the separate account DRD tax benefit that the Company receives. During 2023 and 2022, the Company estimated an income tax benefit of $6,123 and $6,244, respectively, related to the separate account DRD.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

The Company files income tax returns in the U.S. federal jurisdiction and the states of Florida, Louisiana, Mississippi and Montana. With few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for 2019 and earlier tax years. If the Company incurs interest and penalties on income taxes, they are recognized as a component within income taxes.

As of December 31, 2023 and 2022, the Company had no unrecognized deferred tax liabilities. The Company does not expect that the liability related to any federal or foreign tax loss contingencies will significantly increase within the next 12 months.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(10)

Commitments

(a)

Litigation

The Company and other parties are involved in various other litigation in the normal course of business. It is management’s opinion, after consultation with counsel and a review of the facts, that the ultimate liability, if any, arising from such contingencies will not have a material adverse effect on the Company’s financial position or on the results of its operations or cash flows.

(b)

Guaranty Association Assessments

The Company is required by law to participate in the guaranty associations of the various states in which it is licensed to do business. The state guaranty associations ensure payment of guaranteed benefits, with certain restrictions, to policyholders of impaired or insolvent insurance companies by assessing all other companies operating in similar lines of business.

There are currently several insurance companies, which had substantial amounts of life and annuity business, in the process of liquidation or rehabilitation. The Company’s net payment was $118,136 and $8,202 to various state guaranty associations during 2023 and 2022, respectively. The Company has recorded a liability related to guaranty fund assessments of $3,038,333 and $1,336,811 at December 31, 2023 and 2022, respectively. These liabilities are included as taxes, other than federal income taxes in the statutory statements of admitted assets, liabilities and stockholders’ equity. The Company may use the assessments to offset future premium taxes.

(c)

Leases

The Company is obligated under the terms of various leases for certain equipment. Total lease rental expense, including short-term rentals, amounted to approximately $1,230,000 in 2023 and $1,560,000 in 2022. In most cases, management expects that in the normal course of business leases will be renewed or replaced by other leases. Future minimum rental payments required under leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2023 are not significant.

(d)

Loan and Equity Commitments

The Company has commitments to extend credit and to make equity investments in the normal course of business. Commitments to extend credit are agreements to lend money with fixed expiration dates or other termination clauses. Equity commitments usually take the form of investments in limited partnerships. The Company applies its normal lending standards when extending credit commitments. Since several of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Collateral is not obtained for commitments to extend credit but is obtained when loans are closed based on an assessment of the customers’ creditworthiness. The Company’s maximum exposure to credit loss is represented by the contractual amount of the commitments. Commitments to extend credit and to make equity investments aggregated to approximately $609,970,000 at December 31, 2023.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(11)

Reinsurance

The Company follows the usual industry practices of reinsuring (ceding) portions of its risk with other companies. Use of reinsurance does not discharge an insurer from liability on the insurance ceded. The insurer is required to pay in full the amount of its insurance obligations regardless of whether it is entitled or able to receive payment from its reinsurer. The Company monitors both the financial condition of the reinsurers as well as risk concentrations arising from activities and economic characteristics of the reinsurers to lessen the risk of default by such reinsurers. All principal reinsurers maintain an A.M. Best rating of “A” or better.

A summary of reinsurance activity, all with unrelated parties, follows:

	2023		2022
At December 31:
Ceded life insurance in force	$	48,858,729,871		45,047,704,424
Reserve credits for life insurance		120,259,397		112,555,815
Ceded health insurance in force:
Disability insurance (monthly benefit)		2,297,477		2,529,990
Long-term care insurance (daily benefit)		1,238,416		1,295,759
Reserve credits for health insurance		420,961,622		411,768,202
For the year ended December 31:
Premiums ceded	$	64,248,517		59,963,781
Commissions and reinsurance expenses allowances		3,693,547		3,322,187
Claims ceded		67,827,532		64,543,450

A contingent liability exists with respect to life insurance covered under reinsurance agreements in the event the reinsurance company is unable to meet its obligations due under the contracts. In the opinion of management, this liability is not significant.

(12)

Statutory Capital and Surplus and Dividend Restriction

The NAIC utilizes Risk-Based Capital (RBC) to evaluate the adequacy of statutory capital and surplus in relation to risks associated with: (i) asset quality, (ii) insurance risk, (iii) interest rate risk, and (iv) other business factors. The RBC formula is designed as an early warning tool for the states to identify potential under-capitalized companies for the purpose of initiating regulatory action. In the course of operations, the Company periodically monitors the level of its RBC, and it exceeds the minimum required levels as of December 31, 2023 and 2022.

State insurance departments, which regulate insurance companies, recognize only statutory accounting practices for determining and reporting the financial condition and results of operations of an insurance company, for determining its solvency under law, and for determining whether its financial condition warrants payment of a dividend to its shareholders. The Company is restricted by the Mississippi State Insurance Code as to the amount of dividends that may be paid within a twelve consecutive month period without regulatory consent. That restriction is the greater of statutory net gain from operations for the previous year or 10% of the policyholder surplus (net of capital stock) at December 31 of the previous year, subject to a maximum limit equal to statutory earned surplus.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

In addition to the statutory restrictions on dividend distributions, the Company is further restricted by its Articles of Association. Article VII states that No cash dividend shall be paid on the Common Stock in any calendar year unless the capital, surplus and contingency reserves of the corporation shall equal or exceed seven percent (7%) of all other liabilities, with some adjustments for investment transaction reserves, separate account business, and the liability for policy dividends not yet apportioned. Further, the articles state, In addition to the foregoing limitation on the payment of cash dividends on the Common Stock, no cash dividends shall be paid in excess of ten percent (10%) of the profits of the corporation in any calendar year or in excess of seventy-five cents (0.75) for each One Thousand Dollars ($1,000.00) of insurance in force in any calendar year, whichever is the greater. Also, In addition to all other limitations upon the payment of dividends, and except as otherwise provided herein, the corporation shall not declare dividends upon its Common Stock or participating dividends to policyholders except with the approval of the holders of seventy-five percent (75%) of all issued and outstanding shares of the Common Stock.

Dividend distributions are also restricted by the Company’s Bylaws. Article II, Section 6 of the Bylaws of the Company states, In addition to the usual rights and powers of stockholders, as provided in the articles of association of the corporation and by law, the approval of the holders of seventy-five percent (75%) of all issued and outstanding Common Stock of the corporation shall be required to authorize the payment of dividends upon the capital stock of the corporation or participating dividends to policyholders.

At its regularly scheduled meeting on February 21, 2023, the Board of Directors of the Company declared a dividend on its outstanding common stock totaling $21,500,000 to be paid on February 21, 2023 to the ten shareholders of record at February 21, 2023. The dividend declaration and payment were approved in accordance with the Articles of Association and Bylaws of the Company.

At its regularly scheduled meeting on February 22, 2022, the Board of Directors of the Company declared a dividend on its outstanding common stock totaling $21,200,000 to be paid on February 22, 2022 to the ten shareholders of record at February 22, 2022. The dividend declaration and payment were approved in accordance with the Articles of Association and Bylaws of the Company.

Unassigned surplus funds are held for the benefit of stockholders. Total unassigned surplus was $3,257,686,046 and $3,123,034,363 at December 31, 2023 and 2022, respectively.

(13)

Separate Accounts

The separate accounts held by the Company relate to individual annuities and life products of a nonguaranteed return nature. The net investment experience of the separate accounts is credited directly to the policyholder and can be positive or negative. The separate accounts assets and liabilities represent funds that are separately administered, principally for the benefit of certain policyholders who bear the investment risk. The separate accounts assets and liabilities are carried at fair value. Revenues and expenses related to the separate accounts assets and liabilities, to the extent of benefits provided to the separate accounts policyholders, are excluded from the amounts reported in the accompanying statutory statements of earnings.

Separate accounts premiums and other considerations amounted to $192,103 in 2023 and $220,212 in 2022. Reserves for separate accounts with the assets at fair value were $8,320,598 and $7,572,534, at December 31, 2023 and 2022, respectively. The separate accounts had expense allowances in the amount of $11 and $210 at December 31, 2023 and 2022, respectively.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(14)

Fair Value Measurements

Included in various investment related line items in the financial statements are certain financial instruments carried at fair value. Other financial instruments are periodically measured at fair value, such as when impaired, or, for certain bonds and preferred stock when carried at the lower of cost or market.

The fair value of an asset is the amount at which that asset could be bought or sold in a current transaction between willing parties, that is, other than in a forced or liquidation sale. The fair value of a liability is the amount at which that liability could be incurred or settled in a current transaction between willing parties, that is, other than in a forced or liquidation sale.

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

The Company’s financial assets and liabilities carried at fair value have been classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100R, Fair Value Measurements. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset’s or a liability’s classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows:

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

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

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

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(a)

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Given the Company’s investment asset strategy, a relatively small portion of the Company’s investment assets are measured at fair value. The following tables provide information as of December 31, 2023 and 2022 about the Company’s financial assets and liabilities measured at fair value on a recurring basis.

	December 31, 2023
	Level 1		Level 2		Level 3		Total
Assets at fair value:
Bonds	$	75,127,502		846,666		—		75,974,168
Common stocks		659,040,271		140,214,064		33,190,931		832,445,266
Perpetual preferred stocks		—		25,135,062		9,872,913		35,007,975
Separate account assets		—		8,320,609		—		8,320,609
Cash equivalents		82,110,313		—		—		82,110,313
Derivative assets		—		264,031		—		264,031
Total assets at fair value	$	816,278,086		174,780,432		43,063,844		1,034,122,362
Liabilities at fair value:
Derivative liabilities	$	—		131,611		—		131,611
Separate account liabilities		—		8,320,609		—		8,320,609
Total liabilities at fair value	$	—		8,452,220		—		8,452,220

	December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets at fair value:
Bonds	$	71,091,710		620,723		—		71,712,433
Common stocks		688,349,649		113,867,206		33,381,380		835,598,235
Perpetual preferred stocks		—		24,751,809		10,143,760		34,895,569
Separate account assets		—		7,572,744		—		7,572,744
Cash equivalents		48,170,168		—		—		48,170,168
Derivative assets		—		10,146		—		10,146
Total assets at fair value	$	807,611,527		146,822,628		43,525,140		997,959,295
Liabilities at fair value:
Derivative liabilities	$	—		12,222		—		12,222
Separate account liabilities		—		7,572,744		—		7,572,744
Total liabilities at fair value	$	—		7,584,966		—		7,584,966

Fair values and changes in the fair values of separate account assets generally accrue directly to the policyholders and are not included in the Company’s revenues and expenses or surplus.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(b)

Level 1 Financial Assets and Liabilities

The Level 1 financial assets include actively traded exchange-listed equity securities, exchange traded bond mutual funds, and all cash equivalents.

(c)

Level 2 Financial Assets and Liabilities

Bonds, such as co-investments and bank loans, and preferred stocks within the fair value hierarchy of Level 2 are those which are less liquid and rely on the observable trading levels of comparable securities as inputs to determine fair value. Common stocks within the fair value hierarchy of Level 2 are mutual funds and are based on net asset value calculated by the fund manager, which is used as the basis for current transactions. The mutual funds are not considered Level 1 as they are not traded in the open market. The Company has separate account financial assets and liabilities (divided into Subaccount Funds) that are managed and priced by external investment fund managers. As of December 31, 2023 and 2022, the separate account investments in the Funds are valued within the fair value hierarchy as Level 2. Net asset value is quoted by each Fund and is derived by the fair value of the Fund’s underlying investments. The Funds are not considered Level 1 as they are not traded in the open market; rather the separate accounts sell and redeem shares at net asset value with the Funds. The characterization of the underlying securities held by the Funds in accordance with SSAP No. 100R differs from the characterization of an investment in the Fund.

(d)

Level 3 Financial Assets and Liabilities

The Company’s preferred stock within the fair value hierarchy of Level 3 is valued by a third party general partner whose limited partnership also owns shares. The price is based primarily on unobservable inputs. The Company also classifies privately placed equity securities in Level 3. Fair values are derived principally using unobservable inputs as there is little, if any, relevant market data.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(e)

Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

The following table summarizes the changes in assets classified in Level 3 for 2022 and 2023. Gains and losses reported in this table may include changes in fair value that are attributable to both observable and unobservable inputs.

Balance at December 31, 2021	$	40,257,814
Total gains or losses (realized/unrealized):
Included in net income		(34,510	)
Included in surplus		(1,699,258	)
Purchases, issuances and settlements		—
Transfers in (out) of Level 3		5,001,094
Balance at December 31, 2022		43,525,140
Total gains or losses (realized/unrealized):
Included in net income		—
Included in surplus		(461,296	)
Purchases, issuances and settlements		—
Transfers in (out) of Level 3		—
Balance at December 31, 2023	$	43,063,844
Total gains (losses) included in income attributable to instruments held at the reporting date	$	—

Realized gains/losses on sales or impairment of equity securities are included in net income, and changes in unrealized gains/losses have been included in surplus.

Reclassifications impacting Level 3 financial instruments are reported as transfers in (out) of the Level 3 category as of the beginning of the quarter in which the transfer occurs. Therefore, gains and losses in income only reflect activity for the period the instrument was classified in Level 3.

(f)

Financial Instruments Not Carried at Fair Value

SSAP No. 100R, Fair Value Measurements, requires additional disclosures of fair value information of financial instruments. The following include disclosures for the other financial instruments not carried at fair value and not included in the above disclosure.

The fair values of financial instruments presented below are estimates of fair values at a specific point in time using available market information and valuation methodologies considered appropriate by management. These estimates are subjective in nature and involve uncertainties and significant judgment in the interpretation of current market data. Therefore, the fair values presented are not necessarily indicative of amounts the Company could realize or settle currently. The Company does not intend to dispose of or liquidate such instruments prior to maturity.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

The carrying amounts of cash, accounts receivable, and accounts payable approximate their fair values due to the short-term nature of these financial instruments.

The carrying amounts and fair values of the Company’s debt securities and preferred stocks are disclosed in note 2 of the notes to the statutory financial statements. For marketable debt securities and preferred stocks, fair values are based on quoted market prices. If a quoted market price is not available, as in the case of private placements, fair value is estimated using quoted market prices for similar securities.

The fair value for mortgage loans was determined on a loan-by-loan basis using market yields and coupon rates. Market yield for each loan was determined by adding an appropriate pricing spread to the yields on similar maturity treasury issues. The fair value for each loan was calculated as the present value of the future interest and principal payments at the market yield. The fair value of notes payable was determined using the current market loan rate from the Federal Home Loan Bank. The carrying amount and fair value of the Company’s investments in mortgage loans and notes payable at December 31, 2023 and 2022 follow:

	2023				2022
	Carrying		Estimated		Carrying		Estimated
	amount		fair value		amount		fair value
Commercial mortgages	$	2,071,054,939		1,941,647,854		1,943,867,357		1,730,866,402
Residential mortgages		1,631,737		1,631,737		1,831,745		1,831,745
	$	2,072,686,676		1,943,279,591		1,945,699,102		1,732,698,147
Notes payable	$	140,734,204		126,959,946		180,834,210		162,599,104

The fair value of annuity contracts was determined to be the Company’s statutory reserve as such amount most closely approximates the current value of the expected payments under such contracts. Such reserve is higher than the policy surrender values, which is considered the floor value and lower than the account value, which is considered the maximum value. The account value does not approximate the amount the Company anticipates paying under such contracts due to anticipated surrenders.

It is not considered practicable to determine the fair value of the Company’s liability for pension plan administration funds due to the difficulty in calculating an estimated payment pattern and period. Such funds currently bear interest at a rate of approximately 3.65%. The interest rate will adjust annually based on investment portfolio returns for the related assets. Such funds have no stated maturity.

(Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2023 and 2022

(g)

Fair Value of all Financial Instruments

The aggregate fair value of all financial instruments as of December 31, 2023 is presented in the table below:

Type of financial	Aggregate		Admitted
instrument	fair value		value		Level 1		Level 2		Level 3
Bonds	$	9,757,861,408		10,445,444,509		176,153,140		9,571,123,235		10,585,033
Cash equivalents		82,110,313		82,110,313		82,110,313		—		—
Common stock		194,723,360		194,723,360		161,532,429		—		33,190,931
Mutual funds		637,721,906		637,721,906		497,507,842		140,214,064		—
Preferred stock		35,364,476		35,407,975		—		25,491,563		9,872,913
Mortgage loans		1,879,245,469		2,072,686,676		—		1,879,245,469		—
Derivative investments (net)		132,420		132,420		—		132,420		—

The aggregate fair value of all financial instruments as of December 31, 2022 is presented in the table below:

Type of financial	Aggregate			Admitted
instrument	fair value			value			Level 1		Level 2			Level 3
Bonds	$	9,518,726,930			10,410,052,514			136,767,585		9,371,632,283			10,327,062
Cash equivalents		48,170,168			48,170,168			48,170,168		—			—
Common stock		205,936,857			205,936,857			172,555,477		—			33,381,380
Mutual funds		629,661,378			629,661,378			515,794,172		113,867,206			—
Preferred stock		35,221,969			35,295,568			—		25,078,209			10,143,760
Mortgage loans		1,732,698,147			1,945,699,102			—		1,732,698,147			—
Derivative investments (net)		(2,076	)		(2,076	)		—		(2,076	)		—

The Company does not have any financial instruments held at 2023 or 2022 that are considered not practicable to estimate fair value.

Schedule 1

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Selected Financial Data

December 31, 2023

Investment income earned:
U.S. government bonds	$	16,345,696
Other bonds (unaffiliated)		412,363,889
Preferred stocks (unaffiliated)		1,242,782
Common stocks (unaffiliated)		21,834,121
Mortgage loans		71,018,821
Real estate		3,061,620
Premium notes, policy loans and liens		44,047,647
Cash, cash equivalents and short-term investments		6,493,847
Derivative instruments		(9,558	)
Other invested assets		47,198,180
Aggregate write-ins for investment income		565,963
Gross investment income	$	624,163,008
Real estate owned – book value less encumbrances	$	18,835,810
Mortgage loans – book value:
Residential mortgages	$	1,631,736
Commercial mortgages		2,071,054,940
Total mortgage loans	$	2,072,686,676
Mortgage loans by standing – book value:
Good standing	$	2,072,686,676
Good standing with restructured terms		—
Interest overdue more than 90 days, not in foreclosure		—
Foreclosure in process		—
Other long-term assets – statement value	$	1,273,785,372
Policy loans	$	609,441,017
Bonds and stocks of parents, subsidiaries and affiliates – book value:
Bonds	$	—
Preferred stocks		—
Common stocks		—
Bonds, short-term investments, and cash equivalents by maturity – statement value:
Due within one year or less	$	965,774,666
Over 1 year through 5 years		3,692,249,635
Over 5 years through 10 years		3,714,805,247
Over 10 years through 20 years		1,707,438,477
Over 20 years		447,286,797
Total by maturity	$	10,527,554,822

(Continued)

								Schedule 1

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Selected Financial Data

December 31, 2023

Bonds, short-term investments, and cash equivalents by class – statement value:
Class 1	$	6,317,598,651
Class 2		3,860,554,721
Class 3		206,286,770
Class 4		48,170,377
Class 5		93,894,837
Class 6		1,049,466
Total by class	$	10,527,554,822
Total bonds, short-term investments and cash equivalents, publicly traded	$	6,930,293,549
Total bonds, short-term investments and cash equivalents, privately placed		3,597,261,273
Preferred stocks – statement value		35,407,975
Common stocks (unaffiliated) – fair value		832,445,266
Short-term investments – book value		—
Cash equivalents – book value		82,110,313
Options, caps and floors owned – statement value		—
Options, caps and floors written and in force – statement value		—
Collar, swap and forward agreements open – statement value		—
Futures contracts open – current value		—
Cash on deposit		84,494,332
Life insurance in force:
Industrial	$	—
Ordinary		203,848,720,000
Credit life		—
Group life		2,258,625,000
Amount of accidental death insurance in force under ordinary policies	$	445,388,000
Life insurance policies with disability provisions in force:
Industrial	$	—
Ordinary		30,920,503,000
Credit life		—
Group life		2,258,603,000
Supplementary contracts in force:
Ordinary – not involving life contingencies:
Amount on deposit	$	4,279,710
Income payable		20,169,258
Ordinary – involving life contingencies:
Income payable	$	24,678,897
Group – not involving life contingencies:
Amount on deposit	$	—
Income payable		—
Group – involving life contingencies:
Income payable	$	—

(Continued)

Schedule 1

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Selected Financial Data

December 31, 2023

Annuities:
Ordinary:
Immediate – amount of income payable	$	15,318,034
Deferred – fully paid account balance		401,519,384
Deferred – not fully paid – account balance		2,052,434,236
Group:
Amount of income payable	$	81,360
Fully paid account balance		—
Not fully paid – account balance		40,000,740
Accident and health insurance – premiums in force:
Other	$	23,679,522
Group		3,514,707
Credit		—
Deposit funds and dividend accumulations:
Deposit funds – account balance	$	484,169,253
Dividend accumulations – account balance		209,982,839
Claim payments 2023
Group accident and health – year ended December 31, 2023:
2023	$	31,000
2022		325,000
2021		98,000
2020		54,000
2019		64,000
Prior		418,000
Other accident and health – year ended December 31, 2023:
2023	$	1,730,000
2022		1,953,000
2021		1,263,000
2020		957,000
2019		654,000
Prior		1,952,000

See accompanying independent auditors’ report.

Schedule 2

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Summary Investment Schedule

December 31, 2023

(In thousands)

					Admitted assets as
					reported in the
Investment categories	Gross investment holdings				annual statement
Long-term bonds (Schedule D Part 1):
U.S. governments	$	585,615	3.786	%	$	585,615	3.789	%
All other governments		36,316	0.235			36,316	0.235
U.S. states, territories and possessions, etc. guaranteed		19,729	0.128			19,729	0.128
U.S. political subdivisions of states, territories and possessions		246,830	1.596			246,830	1.597
U.S. special revenue and special assessment obligations		1,845,495	11.930			1,845,495	11.939
Industrial and miscellaneous		7,582,681	49.016			7,582,681	49.055
Hybrid securities		50,237	0.325			50,237	0.325
Parent, subsidiaries and affiliates		—	—			—	—
SVO identified funds		75,128	0.486			75,128	0.486
Bank loans		914	0.006			914	0.006
Certificates of Deposit		2,500	0.016			2,500	0.016
Total long-term bonds		10,445,445	67.522			10,445,445	67.575
Preferred stocks (Schedule D, Part 2, Section 1):
Industrial and miscellaneous (Unaffiliated)		35,408	0.229			35,408	0.229
Parent, subsidiaries and affiliates		—	—			—	—
Total preferred stocks		35,408	0.229			35,408	0.229
Common stocks (Schedule D, Part 2, Section 2):
Industrial and miscellaneous Publicly traded (Unaffiliated)		141,673	0.916			141,673	0.917
Industrial and miscellaneous Other (Unaffiliated)		53,050	0.343			53,050	0.343
Parent, subsidiaries and affiliates Publicly traded		—	—			—	—
Parent, subsidiaries and affiliates Other		—	—			—	—
Mutual Funds		140,214	0.906			140,214	0.907
Unit investment trusts		—	—			—	—
Closed-end funds		—	—			—	—
Exchange traded funds		497,508	3.216			497,508	3.219
Total common stocks		832,445	5.381			832,445	5.385
Mortgage loans (Schedule B):
Farm mortgages		—	—			—	—
Residential mortgages		1,632	0.011			1,632	0.011
Commercial mortgages		2,071,055	13.388			2,071,055	13.398
Mezzanine real estate loans		—	—			—	—
Total mortgages loans		2,072,687	13.398			2,072,687	13.409
Real estate (Schedule A)
Properties occupied by company		17,747	0.115			17,747	0.115
Properties held for production of income		1,089	0.007			1,089	0.007
Properties held for sale		—	—			—	—
Total real estate		18,836	0.122			18,836	0.122
Cash, cash equivalents and short-term investments:
Cash (Schedule E, Part 1)		84,500	0.546			84,500	0.547
Cash equivalents (Schedule E, Part 2)		82,110	0.531			82,110	0.531
Short-term investments (Schedule DA)		—	—				—
Total cash, cash equivalents and short-term investment		166,610	1.077			166,610	1.078
Contract loans		609,441	3.940			609,441	3.943
Derivatives (Schedule DB)		132	0.001			132	0.001
Other invested assets (Schedule BA)		1,285,994	8.313			1,273,785	8.241
Receivables for securities		2,767	0.018			2,768	0.018
Securities Lending (Schedule DL, Part 1)		—	—			—	—
Other invested assets (Page 2, Line 11)		—	—			—	—
Total invested assets	$	15,469,765	100.000	%	$	15,457,557	100.000	%

See accompanying independent auditors’ report.

Schedule 3

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Schedule of Supplemental Investment Risks Interrogatories

December 31, 2023

(In thousands)

Total admitted assets (excluding separate account assets):

16,098,952

2)	Ten largest exposures to a single issuer/borrower/investment:

Issuer	Description of exposure	Amount		Percentage
Duke Energy Corporation	Indust. & Misc. - Issuer Obligations; Hybrid Securities - Issuer Obligations	$	81,583		0.5	%
WEC Energy Group, Inc.	Indust. & Misc. - Issuer Obligations		73,244		0.5
Sempra	Indust. & Misc. - Issuer Obligations		61,968		0.4
NextEra Energy, Inc.	Indust. & Misc. - Issuer Obligations		61,248		0.4
Entergy Corporation	Indust. & Misc. - Issuer Obligations; Hybrid Securities - Issuer Obligations		60,619		0.4
International Business Machines Corporation	Indust. & Misc. - Issuer Obligations		60,106		0.4
FirstEnergy Corp.	Indust. & Misc. - Issuer Obligations		57,749		0.4
Berkshire Hathaway Inc.	Indust. & Misc. - Issuer Obligations		56,118		0.3
American Electric Power Company, Inc.	Indust. & Misc. - Issuer Obligations		55,204		0.3
Unilever PLC	Indust. & Misc. - Issuer Obligations		50,682		0.3

Total admitted assets held in bonds and preferred stocks by NAIC rating:

Bonds	Amount		Percentage			Stocks	Amount		Percentage
NAIC-1	$	6,235,488		38.7	%	P/RP-1	$	975		N/M
NAIC-2		3,860,555		24.0		P/RP-2		20,562		0.1
NAIC-3		206,287		1.3		P/RP-3		3,998		N/M
NAIC-4		48,170		0.3		P/RP-4		—		—
NAIC-5		93,895		0.6		P/RP-5		9,873		0.1
NAIC-6		1,049		N/M		P/RP-6		—		—

Admitted assets held in foreign investments:

	Amount		Percentage
Total admitted assets held in foreign investments	$	1,223,065		7.6	%
Foreign-currency denominated investments		—		—
Insurance liabilities denominated in that same foreign currency		—		—

Aggregate foreign investment exposure categorized by NAIC sovereign rating:

	Amount		Percentage
Countries rated by NAIC-1	$	1,119,547		7.0	%
Countries rated by NAIC-2		98,129		0.6
Countries rated by NAIC-3 or below		5,641		N/M

Two largest foreign investment exposures to a single country, categorized by the country’s NAIC sovereign rating:

	Amount		Percentage
Countries rated NAIC-1:
Country:
Australia	$	377,637		2.3	%
United Kingdom		187,499		1.2
Countries rated NAIC-2:
Country:
Mexico	$	51,153		0.3
Panama		16,784		0.1
Countries rated NAIC-3 or below:
Country:
Colombia	$	2,372		N/M
Morocco		2,283		N/M

Aggregate unhedged foreign currency exposure:

—

Aggregate unhedged foreign currency exposure categorized by NAIC sovereign rating:

	Amount		Percentage
Countries rated by NAIC-1	$	—		—	%
Countries rated by NAIC-2		—		—
Countries rated by NAIC-3 or below		—		—

Two largest unhedged foreign currency exposures to a single country, categorized by the country’s NAIC sovereign rating:

		Amount		Percentage
	Countries rated NAIC-1:	$	—		—	%
	Countries rated NAIC-2:		—		—
	Countries rated NAIC-3 or below:		—		—

N/M – Not meaningful

See accompanying independent auditors' report.

(Continued)

Schedule 3

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Schedule of Supplemental Investment Risks Interrogatories

December 31, 2023

(In thousands)

10)

Ten largest nonsovereign foreign issues:

Issuer	NAIC Rating	Amount		Percentage
Equinor ASA	1	$	30,638		0.2	%
Transurban Group	2		26,003		0.2
Rolls-Royce Holdings plc	2,3		20,982		0.1
Mitsubishi HC Capital Inc.	2		19,000		0.1
Shell plc	1		18,163		0.1
AquaSure Holdings Pty Ltd	1		17,000		0.1
Ferguson plc	2		16,955		0.1
Enel SpA	2		16,034		0.1
Siemens Aktiengesellschaft	1		15,839		0.1
NSW Electricity Networks Finance Pty Limited	2		15,000		0.1

11)	Assets held in Canadian investments total $225,326 or 1.40% of the Company’s total admitted assets.

12)	There were no admitted assets held in investments with contractual sales restrictions.

13)	Ten largest equity interests:

Issuer	Investment category	Amount		Percentage
SPDR S&P 500 ETF	Mutual Funds – Common Stocks	$	112,329		0.7	%
PIMCO:INCOME INST	Mutual Funds – Common Stocks		97,227		0.6
VANGUARD 500 IDX ETF	Mutual Funds – Common Stocks		75,635		0.5
VANECK:MS WIDE MOAT	Mutual Funds – Common Stocks		71,688		0.4
INVESCO S&P500 EWGHT	Mutual Funds – Common Stocks		51,816		0.3
ISHARES:CORE MSCI EAFE	Mutual Funds – Common Stocks		51,484		0.3
TOUCHSTONE:SDS CP EMG I	Mutual Funds – Common Stocks		42,987		0.3
ISHARES:CORE MSCI EMMKTS	Mutual Funds – Common Stocks		39,971		0.2
SPDR EURO STOXX 50	Mutual Funds – Common Stocks		29,233		0.2
Golub Capital Inv Corp BDC Common	Industrial, Misc. – Common Stocks		25,016		0.2

14)	Assets held in nonaffiliated, privately placed equities total $62,923 or 0.40% of the Company’s total admitted assets.

15)	There were no admitted assets held in general partnership interests.

16)	Ten largest aggregate mortgage interests:

Issuer	Investment category	Amount		Percentage
Springhill Land Group Series PH-1	Commercial	$	19,114		0.1	%
Elm Apartmetns LLC	Commercial		18,940		0.1
Sawmill Creek Apartments, LLC	Commercial		16,416		0.1
Springs of Royal Oaks Apartments, LLC	Commercial		14,927		0.1
Palm Bay Developers LLC	Commercial		14,909		0.1
Carriage Crossing Apartments, LLC	Commercial		14,694		0.1
BOP Partnership 2	Commercial		14,487		0.1
Campbell Project Parnters, LLC	Commercial		13,587		0.1
Lost Hills Office Parnters, LLC	Commercial		12,940		0.1
Coral Springs Trade Center, Ltd.	Commercial		12,810		0.1

Amount and percentage of Company’s total admitted assets held in the following categories of mortgage loans:

	Loans
Construction loans	$	—	—	%
Mortgage loans over 90 days past due		—	—
Mortgage loans in the process of foreclosure		—	—
Mortgage loans foreclosed		—	—
Restructured mortgage loans		—	—

N/M – Not meaningful

See accompanying independent auditors' report.

(Continued)

Schedule 3

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Schedule of Supplemental Investment Risks Interrogatories

December 31, 2023

(In thousands)

17)	Aggregate mortgage loans having the following loan-to-value ratios as determined from the most current appraisal as of the annual statement date:

Loan-to-value	Residential				Commercial				Agricultural
Above 95%	$	—	—	%	$	—	—	%	$	—	—	%
91% to 95%		—	—			—	—			—	—
81% to 90%		—	—			—	—			—	—
71% to 80%		408	NM			—	—			—	—
Below 70%		1,224	NM			2,071,055	12.9			—	—

18)	There were no assets held in real estate reported in the Annual Statement Schedule A that exceeded 2.5% of the Company’s total admitted assets.

19)	There were no admitted assets held in investments held in mezzanine real estate loans.

20)	Total admitted assets subject to the following types of agreements:

	At year-end					At end of each quarter
Agreement type	Amount		Percentage			1st Qtr		2nd Qtr		3rd Qtr
Securities lending	$	78,398		0.5	%	$	—		—		—
Repurchase		—		—			—		—		—
Reverse repurchase		—		—			—		—		—
Dollar repurchase		—		—			—		—		—
Dollar reverse repurchase		—		—			—		—		—

21)	Warrants not attached to other financial instruments, options, caps, and floors:

Owned

Written

Hedging

—

Income generation

—

Other

—

22)	Potential exposure for collars, swaps and forwards:

At end of each quarter

At year-end

1st Qtr

2nd Qtr

3rd Qtr

Hedging

—

Income generation

—

Replications

—

Other

—

23)	Potential exposure for futures contracts:

At end of each quarter

At year-end

1st Qtr

2nd Qtr

3rd Qtr

Hedging

—

Income generation

—

Replications

—

Other

—

N/M – Not meaningful

See accompanying independent auditors’ report.

Schedule 4

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Supplemental Schedule of Reinsurance Risk Interrogatories

Year ended December 31, 2023

The following information regarding reinsurance contracts is presented to satisfy the disclosure requirements in SSAP No. 61R, Life, Deposit-Type and Accident and Health Reinsurance, which apply to reinsurance contracts entered into, renewed or amended on or after January 1, 1996.

Has Southern Farm Bureau Life Insurance Company reinsured any risk with any other entity under a reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) that is subject to Appendix A-791, Life and Health Reinsurance Agreements, and includes a provision that limits the reinsurer’s assumption of significant risks identified in Appendix A-791?

Examples of risk-limiting features include provisions such as a deductible, a loss ratio corridor, a loss cap, an aggregate limit or other provisions that result in similar effects.

Yes ¨ No x

If yes, indicate the number of reinsurance contracts to which such provisions apply: __________

If yes, indicate if deposit accounting was applied for all contracts subject to Appendix A-791 that limit significant risks.

Yes ¨ No ¨ N/A x

Has Southern Farm Bureau Life Insurance Company reinsured any risk with any other entity under a reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) that is not subject to Appendix A-791, for which reinsurance accounting was applied and includes a provision that limits the reinsurer’s assumption of risk?

Examples of risk-limiting features include provisions such as a deductible, a loss ratio corridor, a loss cap, an aggregate limit or other provisions that result in similar effects.

Yes ¨ No x

If yes, indicate the number of reinsurance contracts to which such provisions apply: __________

If yes, indicate whether the reinsurance credit was reduced for the risk-limiting features.

Yes ¨ No ¨ N/A x

(Continued)

Schedule 4

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Supplemental Schedule of Reinsurance Risk Interrogatories

Year ended December 31, 2023

3.	Does Southern Farm Bureau Life Insurance Company have any reinsurance contracts (other than reinsurance contracts with a federal or state facility) that contain one or more of the following features which may result in delays in payment in form or in fact:

(a)

Provisions that permit the reporting of losses to be made less frequently than quarterly;

(b)

Provisions that permit settlements to be made less frequently than quarterly;

(c)

Provisions that permit payments due from the reinsurer to not be made in cash within ninety (90) days of the settlement date (unless there is no activity during the period); or

(d)

The existence of payment schedules, accumulating retentions from multiple years, or any features inherently designed to delay timing of the reimbursement to the ceding entity.

Yes ¨ No x

4.	Has Southern Farm Bureau Life Insurance Company reflected reinsurance accounting credit for any contracts that are not subject to Appendix A-791 and not yearly renewable term reinsurance, which meet the risk transfer requirements of SSAP No. 61R?

			Has the insured
			event(s) triggering
			contract coverage
Type of contract:	Response:	Identify reinsurance contract(s):	been recognized?
Assumption reinsurance – new for the reporting period	Yes ¨ No x		N/A



Non-proportional reinsurance, which does not result in significant surplus relief	Yes ¨ No x		Yes ¨ No ¨ N/A x

(Continued)

Schedule 4

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Supplemental Schedule of Reinsurance Risk Interrogatories

Year ended December 31, 2023

Has Southern Farm Bureau Life Insurance Company ceded any risk, which is not subject to Appendix A-791 and not yearly renewable term reinsurance, under any reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) during the period covered by the financial statements, and either:

(a)

Accounted for that contract as reinsurance under statutory accounting principles (SAP) and as a deposit under generally accepted accounting principles (GAAP); or

Yes ¨ No x N/A ¨

(b)

Accounted for that contract as reinsurance under GAAP and as a deposit under SAP?

Yes ¨ No x N/A ¨

If the answer to item (a) or item (b) is yes, include relevant information regarding GAAP to SAP differences from the accounting policy footnote to the audited statutory-basis financial statements to explain why the contract(s) is treated differently for GAAP and SAP below:

N/A

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Financial Statements

December 31, 2023 and 2022

(With Report of Independent Registered

Public Accounting Firm Thereon)

KPMG LLP

Suite 1100

One Jackson Place

188 East Capitol Street

Jackson, MS 39201-2127

Report of Independent Registered Public Accounting Firm

To the Board of Directors of Southern Farm Bureau Life Insurance Company and

Contractholders of Southern Farm Bureau Life Variable Life Account:

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of the subaccounts listed in the Appendix that comprise the Southern Farm Bureau Life Variable Life Account (the Separate Account), as of December 31, 2023, the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes, except for the Fidelity VIP Government Money Market Subaccount (Money Market) for which the statements of changes in net assets are for the year ended December 31, 2023 and the period from April 29, 2022 (inception) to December 31, 2022 and the T. Rowe Price Government Money Subaccount (Prime Reserve) for which the statement of changes in net assets is for the period from January 1, 2022 to May 6, 2022 (liquidation) (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended in Note 6. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each subaccount as of December 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the 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 and financial highlights 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 and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2023, by correspondence with transfer agent of the underlying mutual funds. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the Separate Account’s auditor since 2006.

Jackson, Mississippi

April 24, 2024

Appendix

Fidelity VIP Contrafund Subaccount (Contrafund)

Fidelity VIP Growth Subaccount (Growth)

Fidelity VIP High Income Subaccount (High Income)

Fidelity VIP Index 500 Subaccount (Index 500)

Fidelity VIP Mid Cap Subaccount (Mid Cap)

Fidelity VIP Overseas Subaccount (Overseas)

Fidelity VIP Equity-Income Subaccount (Equity-Income)

Fidelity VIP Value Strategies Subaccount (Value Strategies)

Fidelity VIP Dynamic Capital Appreciation Subaccount (Dynamic Capital)

Fidelity VIP Investment Grade Bond Subaccount (Investment Grade Bond)

Fidelity VIP Disciplined Small Cap Subaccount (Disciplined Small Cap)

Fidelity VIP Government Money Market Subaccount (Money Market)

T. Rowe Price Equity Income Subaccount (Equity Income)

T. Rowe Price Mid-Cap Growth Subaccount (Mid-Cap Growth)

T. Rowe Price Personal Strategy Balanced Subaccount (Personal Strategy Balanced)

T. Rowe Price Blue Chip Growth Subaccount (Blue Chip)

T. Rowe Price Limited-Term Bond Subaccount (Limited-Term Bond)

Franklin Income VIP Subaccount (Income Securities)

Franklin Small Cap Value VIP Subaccount (Small Cap Value)

Franklin Small-Mid Cap Growth VIP Subaccount (Small-Mid Cap)

Franklin Mutual Shares VIP Subaccount (Mutual Shares)

Templeton Global Bond VIP Subaccount (Global Income)

Franklin Rising Dividends VIP Subaccount (Rising Dividends)

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Assets and Liabilities

December 31, 2023

																			Investment
					High								Equity-		Value		Dynamic		Grade		Disciplined		Money
	Contrafund		Growth		Income		Index 500		Mid Cap		Overseas		Income		Strategies		Capital		Bond		Small Cap		Market
	Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount
Assets:
Investments in shares of mutual funds, at fair value	$	477,617		369,101		27,175		194,768		532,904		331,509		88,274		23,037		17,412		60,623		2,406		57,133
Liabilities		—		—		—		—		—		—		—		—		—		—		—		—
Net assets	$	477,617		369,101		27,175		194,768		532,904		331,509		88,274		23,037		17,412		60,623		2,406		57,133
Investments in shares of mutual funds, at cost	$	360,994		299,800		30,868		111,423		502,554		270,944		81,270		18,415		13,879		68,654		2,175		57,133
Shares of mutual funds owned		9,821.44		3,964.57		5,907.61		421.77		14,624.15		12,839.23		3,552.28		1,391.97		1,038.30		5,427.32		147.61		57,132.94
Accumulation units outstanding		6,446.68		4,380.19		890.23		2,802.51		10,359.37		8,529.70		3,401.27		707.09		406.24		4,239.58		78.13		5,464.70
Accumulation unit value*	$	74.09		84.27		30.53		69.50		51.44		38.87		25.95		32.58		42.86		14.30		30.80		10.45

*The accumulation unit value represents the ending unit value of each open and available subaccount whether or not there is activity at the end of the period in the underlying fund.

(Continued)

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Assets and Liabilities

December 31, 2023

					Personal
	Equity		Mid-Cap		Strategy				Limited-		Income		Small Cap		Small-		Mutual		Global		Rising
	Income		Growth		Balanced		Blue Chip		Term Bond		Securities		Value		Mid Cap		Shares		Income		Dividends
	Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount
Assets:
Investments in shares of mutual funds, at fair value	$	390,233		60,293		262,953		137,688		140,387		—		83,903		20,053		8,756		1,221		5,379
Liabilities		—		—		—		—		—		—		—		—		—		—		—
Net assets	$	390,233		60,293		262,953		137,688		140,387		—		83,903		20,053		8,756		1,221		5,379
Investments in shares of mutual funds, at cost	$	383,564		57,759		265,384		96,529		145,306		—		84,545		21,117		9,968		1,469		5,183
Shares of mutual funds owned		14,057.40		2,071.21		13,134.51		2,980.91		30,125.95		0.01		5,925.38		1,175.44		556.27		89.96		190.56
Accumulation units outstanding		8,184.45		621.49		6,917.60		2,965.05		10,813.53		—		2,835.24		590.87		433.84		92.88		144.11
Accumulation unit value*	$	47.68		97.01		38.01		46.44		12.98		20.10		29.59		33.94		20.18		13.14		37.33

*The accumulation unit value represents the ending unit value of each open and available subaccount whether or not there is activity at the end of the period in the underlying fund.

See accompanying notes to financial statements.

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Operations

Year ended December 31, 2023

																												Investment
							High												Equity-			Value			Dynamic			Grade			Disciplined			Money
	Contrafund			Growth			Income			Index 500			Mid Cap			Overseas			Income			Strategies			Capital			Bond			Small Cap			Market
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Income:
Dividends	$	2,197			428			1,486			2,633			3,057			3,260			1,623			247			56			1,542			35			2,678
Expenses:
Mortality and expense risk charges		(4,572	)		(3,379	)		(271	)		(1,849	)		(5,223	)		(3,219	)		(875	)		(213	)		(160	)		(616	)		(36	)		(582	)
Net investment income (loss)		(2,375	)		(2,951	)		1,215			784			(2,166	)		41			748			34			(104	)		926			(1	)		2,096
Realized gains (losses) on investments:
Realized gains (losses) on sale of fund shares		10,501			5,127			(106	)		5,201			6,581			5,804			1,689			35			32			(1,246	)		110
Capital gain distributions from mutual funds		15,742			15,365			—			1,605			13,945			824			2,435			814			730			—			—			—
Total realized gains (losses) on investments		26,243			20,492			(106	)		6,806			20,526			6,628			4,124			849			762			(1,246	)		110			—
Change in unrealized appreciation (depreciation) of investments		97,465			79,239			1,217			31,885			49,041			48,565			3,341			2,891			3,129			3,503			345			—
Net increase in net assets from operations	$	121,333			96,780			2,326			39,475			67,401			55,234			8,213			3,774			3,787			3,183			454			2,096

(Continued)

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Operations

Year ended December 31, 2023

							Personal
	Equity			Mid-Cap			Strategy						Limited-			Income		Small Cap			Small-			Mutual			Global			Rising
	Income			Growth			Balanced			Blue Chip			Term Bond			Securities		Value			Mid Cap			Shares			Income			Dividends
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount		Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Income:
Dividends	$	8,023			—			5,956			—			4,511			—		563			—			197			—			63
Expenses:
Mortality and expense risk charges		(4,017	)		(579	)		(2,716	)		(1,237	)		(1,417	)		—		(810	)		(183	)		(95	)		(12	)		(59	)
Net investment income (loss)		4,006			(579	)		3,240			(1,237	)		3,094			—		(247	)		(183	)		102			(12	)		4
Realized gains (losses) on investments:
Realized gains (losses) on sale of fund shares		1,226			281			(664	)		8,059			(516	)				(4,006	)		(27	)		(168	)		(7	)		71
Capital gain distributions from mutual funds		15,904			3,613			713			—			—					4,061			—			789			—			566
Total realized gains (losses) on investments		17,130			3,894			49			8,059			(516	)		—		55			(27	)		621			(7	)		637
Change in unrealized appreciation (depreciation) of investments		10,673			6,289			31,321			39,514			2,674			—		10,278			4,308			318			44			(67	)
Net increase in net assets from operations	$	31,809			9,604			34,610			46,336			5,252			—		10,086			4,098			1,041			25			574

See accompanying notes to financial statements.

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Changes in Net Assets

Years or periods ended December 31, 2023 and 2022

	Contrafund						Growth						High Income						Index 500						Mid Cap						Overseas
	Subaccount						Subaccount						Subaccount						Subaccount						Subaccount						Subaccount
	2023			2022			2023			2022			2023			2022			2023			2022			2023			2022			2023			2022
Increase (decrease) in net assets from operations:
Net investment income (loss)	$	(2,375	)		(2,240	)		(2,951	)		(1,333	)		1,215			1,052			784			657			(2,166	)		(2,798	)		41			100
Total realized gains (losses) on investments		26,243			23,338			20,492			26,691			(106	)		(143	)		6,806			11,863			20,526			33,336			6,628			3,962
Change in unrealized appreciation (depreciation) of investments		97,465			(164,243	)		79,239			(121,088	)		1,217			(4,634	)		31,885			(53,969	)		49,041			(124,284	)		48,565			(105,025	)
Net increase (decrease) in net assets from operations		121,333			(143,145	)		96,780			(95,730	)		2,326			(3,725	)		39,475			(41,449	)		67,401			(93,746	)		55,234			(100,963	)

Contract transactions:
Transfers of net premiums		19,752			20,178			10,347			9,948			1,730			1,690			8,937			9,257			25,615			26,433			17,568			19,208
Transfers of surrenders and death benefits		(19,892	)		(6,130	)					—			(600	)		(1,812	)		(1,397	)		(15,584	)		(24,611	)		(12,644	)		(21,748	)		(8,449	)
Transfers of policy loans, net of repayments		(1,608	)		823			(2,427	)		622			—			—			(1,664	)		(210	)		(2,246	)		630			(2,102	)		260
Transfers of administrative charges		(23,978	)		(23,311	)		(16,858	)		(15,567	)		(1,179	)		(1,419	)		(10,558	)		(11,016	)		(27,514	)		(28,099	)		(13,032	)		(13,037	)
Transfers between subaccounts, including the Declared Interest Option account		1,822			1,761			837			828			—			—			(21	)		—			1,394			1,357			600			600
Net increase (decrease) in net assets from contract transactions		(23,904	)		(6,679	)		(8,101	)		(4,169	)		(49	)		(1,541	)		(4,703	)		(17,553	)		(27,362	)		(12,323	)		(18,714	)		(1,418	)
Total increase (decrease) in net assets		97,429			(149,824	)		88,679			(99,899	)		2,277			(5,266	)		34,772			(59,002	)		40,039			(106,069	)		36,520			(102,381	)
Net assets at beginning of year		380,188			530,012			280,422			380,321			24,898			30,164			159,996			218,998			492,865			598,934			294,989			397,370
Net assets at end of year	$	477,617			380,188			369,101			280,422			27,175			24,898			194,768			159,996			532,904			492,865			331,509			294,989

(Continued)

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Changes in Net Assets

Years or periods ended December 31, 2023 and 2022

	Equity-Income					Value Strategies					Dynamic Capital					Investment Grade Bond					Disciplined Small Cap					Money Market
	Subaccount					Subaccount					Subaccount					Subaccount					Subaccount					Subaccount
		2023		2022			2023		2022			2023		2022			2023		2022			2023		2022			2023		2022*
Increase (decrease) in net assets from operations:
Net investment income (loss)	$	748		856			34		17			(104	)	(108	)		926		835			(1	)	(5	)		2,096		405
Total realized gains (losses) on investments		4,124		3,417			849		943			762		1,853			(1,246	)	3,229			110		525			—		—
Change in unrealized appreciation (depreciation) of investments		3,341		(10,275	)		2,891		(2,623	)		3,129		(5,533	)		3,503		(13,976	)		345		(1,170	)		—		—
Net increase (decrease) in net assets from operations		8,213		(6,002	)		3,774		(1,663	)		3,787		(3,788	)		3,183		(9,912	)		454		(650	)		2,096		405
Contract transactions:
Transfers of net premiums		3,409		4,335			250		250			114		114			4,352		4,970			738		662			7,517		7,002
Transfers of surrenders and death benefits		(17,172	)	—			—		—			—		—			(8,675	)	—			(1,843	)	—			(572	)	(7,342	)
Transfers of policy loans, net of repayments		(3	)	(147	)		—		—			(10	)	(10	)		(3	)	(119	)		(5	)	(5	)		(50	)	(126	)
Transfers of administrative charges		(2,485	)	(2,777	)		(188	)	(182	)		(133	)	(125	)		(1,745	)	(1,898	)		(155	)	(100	)		(7,004	)	(5,201	)
Transfers between subaccounts, including the Declared Interest Option account		—		—			—		—			—		—			—		—			—		—			—		60,408
Net increase (decrease) in net assets from contract transactions		(16,251	)	1,411			62		68			(29	)	(21	)		(6,071	)	2,953			(1,265	)	557			(109	)	54,741
Total increase (decrease) in net assets		(8,038	)	(4,591	)		3,836		(1,595	)		3,758		(3,809	)		(2,888	)	(6,959	)		(811	)	(93	)		1,987		55,146
Net assets at beginning of year		96,312		100,903			19,201		20,796			13,654		17,463			63,511		70,470			3,217		3,310			55,146		—
Net assets at end of year	$	88,274		96,312			23,037		19,201			17,412		13,654			60,623		63,511			2,406		3,217			57,133		55,146

*For the period May 3, 2022 to December 31, 2022

(Continued)

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Changes in Net Assets

Years or periods ended December 31, 2023 and 2022

	Equity Income					Mid-Cap Growth					Personal Strategy Balanced					Blue Chip					Limited-Term Bond					Prime Reserve
	Subaccount					Subaccount					Subaccount					Subaccount					Subaccount					Subaccount
		2023		2022			2023		2022			2023		2022			2023		2022			2023		2022			2022*
Increase (decrease) in net assets from operations:
Net investment income (loss)	$	4,006		3,281			(579	)	(577	)		3,240		1,376			(1,237	)	(1,362	)		3,094		1,303			(206	)
Total realized gains (losses) on investments		17,130		19,547			3,894		1,812			49		3,760			8,059		6,634			(516	)	(234	)		—
Change in unrealized appreciation (depreciation) of investments		10,673		(40,605	)		6,289		(17,360	)		31,321		(64,252	)		39,514		(74,939	)		2,674		(9,443	)		—
Net increase (decrease) in net assets from operations		31,809		(17,777	)		9,604		(16,125	)		34,610		(59,116	)		46,336		(69,667	)		5,252		(8,374	)		(206	)
Contract transactions:
Transfers of net premiums		19,404		19,328			2,373		2,391			15,896		16,023			3,882		4,922			13,151		14,942			2,766
Transfers of surrenders and death benefits		(25,902	)	(4,833	)		—		—			(19,891	)	(7,349	)		(18,770	)	—			(8,611	)	(8,402	)		—
Transfers of policy loans, net of repayments		(276	)	1,001			(117	)	(107	)		(1,833	)	1,466			(3	)	(111	)		(82	)	(189	)		—
Transfers of administrative charges		(24,326	)	(24,219	)		(3,551	)	(3,228	)		(14,840	)	(15,014	)		(3,127	)	(3,334	)		(8,605	)	(9,170	)		(2,825	)
Transfers between subaccounts, including the Declared Interest Option account		2,304		2,202			—		—			2,791		2,677			—		—			—		—			(60,407	)
Net increase (decrease) in net assets from contract transactions		(28,796	)	(6,521	)		(1,295	)	(944	)		(17,877	)	(2,197	)		(18,018	)	1,477			(4,147	)	(2,819	)		(60,466	)
Total increase (decrease) in net assets		3,013		(24,298	)		8,309		(17,069	)		16,733		(61,313	)		28,318		(68,190	)		1,105		(11,193	)		(60,672	)
Net assets at beginning of year		387,220		411,518			51,984		69,053			246,220		307,533			109,370		177,560			139,282		150,475			60,672
Net assets at end of year	$	390,233		387,220			60,293		51,984			262,953		246,220			137,688		109,370			140,387		139,282			—

*Liquidated on May 6, 2022

(Continued)

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Changes in Net Assets

Years or periods ended December 31, 2023 and 2022

	Income Securities				Small Cap Value						Small-Mid Cap						Mutual Shares						Global Income						Rising Dividends
	Subaccount				Subaccount						Subaccount						Subaccount						Subaccount						Subaccount
	2023		2022		2023			2022			2023			2022			2023			2022			2023			2022			2023			2022
Increase (decrease) in net assets from operations:
Net investment income (loss)	$	—		—		(247	)		162			(183	)		(181	)		102			100			(12	)		(11	)		4			—
Total realized gains (losses) on investments		—		—		55			14,977			(27	)		3,780			621			996			(7	)		(6	)		637			530
Change in unrealized appreciation (depreciation) of investments		—		—		10,278			(25,369	)		4,308			(11,743	)		318			(1,882	)		44			(48	)		(67	)		(1,015	)
Net increase (decrease) in net assets from operations		—		—		10,086			(10,230	)		4,098			(8,144	)		1,041			(786	)		25			(65	)		574			(485	)
Contract transactions:
Transfers of net premiums		—		—		3,203			3,788			349			349			63			69			—			89			1,259			1,070
Transfers of surrenders and death benefits		—		—		(13,193	)		—			—			—			(1,142	)		—			—			—			(1,187	)		—
Transfers of policy loans, net of repayments		—		—		(7	)		(105	)		(6	)		(5	)		—			—			—			—			—			—
Transfers of administrative charges		—		—		(2,200	)		(2,416	)		(176	)		(175	)		(78	)		(78	)		(6	)		(8	)		(236	)		(104	)
Transfers between subaccounts, including the Declared Interest Option account		—		—		—			—			—			—			—			—			—			—			—			—

Net increase (decrease) in net assets from contract transactions		—		—		(12,197	)		1,267			167			169			(1,157	)		(9	)		(6	)		81			(164	)		966
Total increase (decrease) in net assets		—		—		(2,111	)		(8,963	)		4,265			(7,975	)		(116	)		(795	)		19			16			410			481
Net assets at beginning of year		—		—		86,014			94,977			15,788			23,763			8,872			9,667			1,202			1,186			4,969			4,488
Net assets at end of year	$	—		—		83,903			86,014			20,053			15,788			8,756			8,872			1,221			1,202			5,379			4,969

See accompanying notes to financial statements.

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2023 and 2022

(1)	Organization and Significant Accounting Policies

(a)

Organization

Southern Farm Bureau Life Variable Life Account (the Account), a unit investment trust registered under the Investment Company Act of 1940, as amended, was established by Southern Farm Bureau Life Insurance Company (the Company) in accordance with the rules and regulations of the Insurance Department of the State of Mississippi. The Account is a funding vehicle for individual adjustable premium variable life insurance policies issued by the Company. The Account commenced operations on August 1, 2002.

At the direction of eligible policy owners, the Account is currently available to invest in 23 investment subaccounts which, in turn, may own shares of the following open-end registered investment companies (the Funds):

Subaccount		Invests exclusively in shares of
		Fidelity Variable Insurance Products Funds:
Fidelity VIP Contrafund (Contrafund)		VIP Contrafund Portfolio (Initial Class)
Fidelity VIP Growth (Growth)		VIP Growth Portfolio (Initial Class)
Fidelity VIP High Income (High Income)		VIP High Income Portfolio (Initial Class)
Fidelity VIP Index 500 (Index 500)		VIP Index 500 Portfolio (Initial Class)
Fidelity VIP Mid Cap (Mid Cap)		VIP Mid Cap Portfolio (Initial Class)
Fidelity VIP Overseas (Overseas)		VIP Overseas Portfolio (Initial Class)
Fidelity VIP Equity-Income (Equity-Income)		VIP Equity-Income Portfolio (Initial Class)
Fidelity VIP Value Strategies (Value Strategies)		VIP Value Strategies Portfolio (Initial Class)
Fidelity VIP Dynamic Capital Appreciation (Dynamic Capital)		VIP Dynamic Capital Appreciation Portfolio (Initial Class)
Fidelity VIP Investment Grade Bond (Investment Grade Bond)		VIP Investment Grade Bond Portfolio (Initial Class)
Fidelity VIP Disciplined Small Cap (Disciplined Small Cap)		VIP Disciplined Small Cap Portfolio (Initial Class)
Fidelity VIP Government Money Market (Money Market)		VIP Government Money Market Portflio (Initial Class)

		T. Rowe Price Equity Series, Inc.:
T. Rowe Price Equity Income (Equity Income)		Equity Income Portfolio
T. Rowe Price Mid-Cap Growth (Mid-Cap Growth)		Mid-Cap Growth Portfolio
T. Rowe Price Moderate Allocation Portfolio		Moderate Allocation Portfolio
(Personal Strategy Balanced)
T. Rowe Price Blue Chip Growth (Blue Chip)		Blue Chip Growth Portfolio

		T. Rowe Price Fixed Income Series, Inc.:
T. Rowe Price Limited-Term Bond (Limited-Term Bond)		Limited-Term Bond Portfolio

		Franklin Templeton Variable Insurance Products Trust:
Franklin Income VIP (Income Securities)		Franklin Income VIP Fund (Class 1)
Franklin Small Cap Value VIP (Small Cap Value)		Franklin Small Cap Value VIP Fund (Class 1)
Franklin Small-Mid Cap Growth VIP (Small-Mid Cap)		Franklin Small-Mid Cap Growth VIP Fund (Class 1)
Franklin Mutual Shares VIP (Mutual Shares)		Franklin Mutual Shares VIP Fund (Class 1)
Templeton Global Bond VIP (Global Income)		Templeton Global Bond VIP Fund (Class 1)
Franklin Rising Dividends VIP (Rising Dividends)		Franklin Rising Dividends VIP Fund (Class 1)

(Continued)

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2023 and 2022

Under applicable insurance law, the assets and liabilities of the Account are clearly identifed and separate from the Company’s other assets and liabilities. The portion of the Account’s assets applicable to the variable life insurance policies is not chargeable with liabilities arising out of any business the Company may conduct.

Eligible contract owners may also allocate funds to the Declared Interest Option (DIO) account, which is held and administered by the Company. The DIO account is funded by the general account of the Company and pays interest at declared rates guaranteed for each contract year.

(b)

Investments

Investments in shares of the Funds are stated at fair value, which is the closing net asset value per share as determined by the respective Fund. The first-in, first-out cost basis has been used in determining the net realized gain or loss from investment transactions and unrealized appreciation or depreciation of investments. Investment transactions are accounted for on the trade date.

Dividends and realized capital gain distributions are taken into income on an accrual basis as of the ex-dividend date and are automatically reinvested in shares of the respective Fund on the payable date.

(c)

Use of Estimates in the Preparation of Financial Statements

The preparation of the Account’s financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported and disclosed. These estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed in the financial statements.

(d)

Fair Value Measurements

Investments in the Funds are stated at the closing net asset value per share on December 31, 2023, which approximates fair value. The difference between cost and net asset value is reflected as unrealized appreciation or depreciation of investments. The Account applies Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 820, Fair Value Measurement (Topic 820). Topic 820 defines fair value as the price that the Account would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. The inputs are summarized into three broad categories. Level 1 includes valuations based on quoted prices of identical securities in active markets. Level 2 includes valuations for which all significant inputs are observable, either directly or indirectly. Direct observable inputs include closing prices of similar securities in active markets or closing prices for identical or similar securities in nonactive markets. Indirect observable inputs include factors such as interest rates, yield curves, prepayment speeds, and credit risks.

Level 3 includes valuations based on inputs that are unobservable and significant to the fair value measurement including the reporting entity’s own assumptions in determining the fair value of the investment.

(Continued)

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2023 and 2022

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. As of December 31, 2023, the Account’s investments in the Funds are valued within the above fair value hierarchy as Level 2. Net asset value is quoted by the Funds as derived by the fair value of the Funds’ underlying investments. The Funds are not considered Level 1 as they are not traded in the open market; rather the Account sells and redeems shares at net asset value with the Funds. The characterization of the underlying securities held by the Funds in accordance with Topic 820 differs from the characterization of an investment in the Fund.

	(e)	Subsequent Events

The Account has evaluated subsequent events through April 24, 2024, the date the financial statements were issued.

(2)

Expense Charges

The Account pays the Company certain amounts relating to the distribution and administration of the policies funded by the Account and as reimbursement for certain mortality and other risks assumed by the Company. The following summarizes those amounts.

Premium Expense Charge: The Company deducts a premium expense charge from each premium payment for each policy year to compensate itself for policy-related distribution expenses. The remaining amount (the net premium) is credited to the Accumulated Value according to the allocation instructions. For policies issued prior to May 1, 2008, the charge is equal to 10% of premiums up to the basic annual premium and 3% in excess of the basic annual premium. For policies issued on or after May 1, 2008, the charge is 10% of the target premium and 3% in excess of the target premium.

Monthly Deduction: The Company deducts a monthly deduction from the Accumulated Value on the Policy Date and on each Monthly Deduction Day. The Company will make deductions from each subaccount and the DIO account on a pro-rata basis. Because portions of the monthly deduction (such as the cost of insurance) can vary from month-to-month, the monthly deduction will also vary.

The monthly deduction has three components:

	1.	a cost of insurance charge

	2.	a monthly policy expense equal to $6 for policies issued prior to May 1, 2008, $10 for the first 5 Policy Years and $6 thereafter for policies issued on or after May 1, 2008

charges for any riders

Mortality and Expense Risk Charge: The Company deducts a daily charge from each subaccount (not the DIO account) to compensate itself for certain mortality and expense risks it assumes. This charge is incorporated in the calculation of the unit value and is equal to:

	·	The assets in each subaccount, multiplied by

0.0028618%, which is the daily portion of the annual mortality and expense risk charge rate of 1.05% during all policy years.

(Continued)

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2023 and 2022

Surrender Charges: If the policyholder fully surrenders the Policy (or it lapses) during the first 10 Policy Years, the Company deducts surrender charges from the Accumulated Value. The Company will make the deductions from each subaccount and the DIO account on a pro-rata basis. The surrender charge begins at 50% of the basic annual premium on policies issued prior to May 1, 2008 or 50% of the surrender charge base on policies issued on or after May 1, 2008 in the 1st year, and declines 5% each year until the 11th year at which time the surrender charge will be 0%. Additional 10-year surrender charges are associated with certain increases in death benefit (Specified Amount) as selected by the policyholder in accordance with the policy terms.

Withdrawal Charges: For each withdrawal, the Company will make a deduction from each subaccount and the DIO account on a pro-rate basis a fee equal to the lesser of $25 or 2% of the amount withdrawn.

Transfer Charge: The Company may currently charge $25 in the form of redemption units for the 13th and each additional transfer among the subaccounts and the DIO account during a policy year.

(3)

Federal Income Taxes

The operations of the Account are included in the federal income tax return of the Company, which is taxed as a life insurance company under the provisions of the Internal Revenue Code (IRC). Under the current provisions of the IRC, the Company does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited under the contracts. Based on this, no charge is being made currently to the Account for federal income taxes. The Company reviews periodically the status of this policy in the event of changes in the tax law. A charge may be made in future years for any federal income taxes that would be attributable to the contracts.

The Account applies FASB ASC Topic 740, Income Taxes (Topic 740). Topic 740 establishes financial accounting and disclosure requirements for recognition and measurement of tax positions taken or expected to be taken on an income tax return. With limited exception, the Account is no longer subject to U.S. federal, state, and local audits by tax authorities for 2019 and earlier tax years.

There are no uncertain tax positions impacting the Account which rise to the level of more likely than not.

(Continued)

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2023 and 2022

(4)

Purchases and Sales of Investment Securities

The aggregate cost of investment securities purchased and proceeds from investment securities sold by the subaccounts were as follows during the year ended December 31, 2023:

	Cost of		Proceeds
Subaccount	purchases		from sales
Contrafund	$	24,538		35,140
Growth		19,889		15,591
High Income		2,390		1,230
Index 500		7,762		10,088
Mid Cap		25,789		41,411
Overseas		11,299		29,155
Equity-Income		5,185		18,254
Value Strategies		1,183		273
Dynamic Capital		853		256
Investment Grade Bond		4,148		9,293
Disciplined Small Cap		614		1,881
Money Market		6,325		4,339
Equity Income		33,296		42,192
Mid-Cap Growth		4,724		2,987
Personal Strategy Balanced		14,295		28,249
Blue Chip		1,378		20,634
Limited-Term Bond		9,990		11,060
Income Securities		—		—
Small Cap Value		5,764		14,147
Small-Mid Cap		210		227
Mutual Shares		1,029		1,296
Global Income		—		19
Rising Dividends		1,653		1,246

(Continued)

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2023 and 2022

(5)

Changes from Units Outstanding

Transactions in units of each subaccount were as follows for the year ended December 31, 2023, and the year or period ended December 31, 2022:

	2023							2022
					Net							Net
					increase							increase
Subaccount	Purchased		Redeemed		(decrease)			Purchased		Redeemed		(decrease)
Contrafund		336		666		(330	)		389		502		(113	)
Growth		160		267		(107	)		172		234		(62	)
High Income		60		62		(2	)		61		117		(56	)
Index 500		144		216		(72	)		287		597		(310	)
Mid Cap		578		1,130		(552	)		718		994		(276	)
Overseas		515		1,037		(522	)		697		757		(60	)
Equity-Income		140		803		(663	)		190		130		60
Value Strategies		8		6		2			9		6		3
Dynamic Capital		3		4		(1	)		3		4		(1	)
Investment Grade Bond		315		743		(428	)		356		150		206
Disciplined Small Cap		27		74		(47	)		25		4		21
Money Market*		844		854		(10	)		6,954		1,479		5,475
Equity Income		493		1,113		(620	)		525		671		(146	)
Mid-Cap Growth		27		42		(15	)		28		39		(11	)
Personal Strategy Balanced		539		1,015		(476	)		648		720		(72	)
Blue Chip		99		614		(515	)		138		96		42
Limited-Term Bond		1,045		1,373		(328	)		1,455		1,687		(232	)
Prime Reserve**		—		—		—			287		6,318		(6,031	)
Income Securities		—		—		—			—		—		—
Small Cap Value		118		534		(416	)		146		99		47
Small-Mid Cap		12		6		6			11		6		5
Mutual Shares		3		64		(61	)		4		4		—
Global Income		—		—		—			7		1		6
Rising Dividends		36		40		(4	)		32		3		29

*For the year ended December 31, 2023 and the period April 29, 2022 to December 31, 2022

**For the period January 1, 2022 to May 6, 2022

(Continued)

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2023 and 2022

(6)

Financial Highlights

The Account has presented the following summary of units outstanding, unit values, net assets, investment income ratios, ratios of expenses to average net assets, and total return ratios for the years or periods ended December 31, 2023, 2022, 2021, 2020 and 2019:

										Ratio of
	As of December 31						Investment			expenses to
			Unit		Net		income			average			Total
	Units		value (1)		assets		ratio (2)			net assets (3)			return (4)
Contrafund:
2023		6,447	$	74.09	$	477,617		0.50	%		1.05	%		32.07	%
2022		6,777		56.10		380,188		0.51			1.05			(27.08	)
2021		6,890		76.93		530,012		0.06			1.05			26.51
2020		7,045		60.81		428,384		0.25			1.05			29.21
2019		7,560		47.06		355,790		0.69			1.05			30.21
Growth:
2023		4,380		84.27		369,101		0.13			1.05			34.83
2022		4,487		62.50		280,422		0.61			1.05			(25.24	)
2021		4,549		83.60		380,321		0.00			1.05			21.93
2020		4,593		68.56		314,881		0.08			1.05			42.40
2019		5,410		48.15		260,503		0.22			1.05			32.92
High Income:
2023		890		30.53		27,175		5.71			1.05			9.33
2022		892		27.92		24,898		4.92			1.05			(12.29	)
2021		948		31.83		30,164		5.38			1.05			3.33
2020		952		30.81		29,326		5.07			1.05			1.68
2019		948		30.30		28,752		3.92			1.05			13.91
Index 500:
2023		2,803		69.50		194,768		1.48			1.05			24.89
2022		2,875		55.65		159,996		1.40			1.05			(19.06	)
2021		3,185		68.75		218,998		1.25			1.05			27.24
2020		3,395		54.03		183,427		1.63			1.05			17.01
2019		4,566		46.18		210,852		1.25			1.05			29.99
Mid Cap:
2023		10,359		51.44		532,904		0.61			1.05			13.88
2022		10,911		45.17		492,865		0.50			1.05			(15.63	)
2021		11,187		53.54		598,934		0.62			1.05			24.30
2020		11,464		43.07		493,773		0.64			1.05			16.96
2019		13,091		36.83		482,074		0.69			1.05			22.17
Overseas:
2023		8,530		38.87		331,509		1.05			1.05			19.26
2022		9,052		32.59		294,989		1.08			1.05			(25.27	)
2021		9,112		43.61		397,370		0.53			1.05			18.46
2020		9,360		36.81		344,585		0.43			1.05			14.41
2019		10,121		32.18		325,649		1.19			1.05			26.44

(Continued)

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2023 and 2022

										Ratio of
	As of December 31						Investment			expenses to
			Unit		Net		income			average			Total
	Units		value (1)		assets		ratio (2)			net assets (3)			return (4)
Equity-Income:
2023		3,401	$	25.95	$	88,274		1.93	%		1.05	%		9.50	%
2022		4,064		23.70		96,312		1.94			1.05			(5.94	)
2021		4,004		25.20		100,903		1.94			1.05			23.60
2020		3,965		20.39		80,841		1.84			1.05			5.59
2019		4,218		19.31		81,452		1.31			1.05			26.12
Value Strategies:
2023		707		32.58		23,037		1.21			1.05			19.60
2022		705		27.24		19,201		1.13			1.05			(7.99	)
2021		702		29.61		20,796		1.57			1.05			32.21
2020		699		22.39		15,657		1.37			1.05			7.13
2019		1,306		20.90		27,290		1.67			1.05			33.13
Dynamic Capital:
2023		406		42.86		17,412		0.36			1.05			27.73
2022		407		33.56		13,654		0.31			1.05			(21.69	)
2021		408		42.85		17,463		0.41			1.05			23.33
2020		408		34.74		14,183		0.21			1.05			32.22
2019		408		26.28		10,734		0.60			1.05			28.73
Investment Grade Bond:
2023		4,240		14.30		60,623		2.61			1.05			5.10
2022		4,668		13.61		63,511		2.32			1.05			(13.86	)
2021		4,462		15.79		70,470		2.06			1.05			(1.64	)
2020		4,375		16.06		70,248		2.19			1.05			8.26
2019		4,181		14.83		62,018		1.74			1.05			8.53
Disciplined Small Cap:
2023		78		30.80		2,406		1.02			1.05			19.71
2022		125		25.73		3,217		0.89			1.05			(19.08	)
2021		104		31.79		3,310		0.41			1.05			19.40
2020		100		26.63		2,671		0.72			1.05			17.22
2019		174		22.71		3,959		0.63			1.05			22.42
Money Market
2023		5,465		10.45		57,133		4.79			1.05			3.81
2022*		5,475		10.07		55,146		2.08			1.05			0.72
Equity Income:
2023		8,184		47.68		390,233		2.08			1.05			8.41
2022		8,804		43.98		387,220		1.88			1.05			(4.34	)
2021		8,950		45.98		411,518		1.57			1.05			24.25
2020		9,122		37.01		337,568		2.33			1.05			0.13
2019		10,184		36.96		376,375		2.23			1.05			25.09

*April 29, 2022 to December 31, 2022

(Continued)

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2023 and 2022

										Ratio of
	As of December 31						Investment			expenses to
			Unit		Net		income			average			Total
	Units		value (1)		assets		ratio (2)			net assets (3)			return (4)
Mid-Cap Growth:
2023		621	$	97.01	$	60,293		0.00	%		1.05	%		18.72	%
2022		636		81.72		51,984		0.00			1.05			(23.38	)
2021		647		106.66		69,053		0.00			1.05			13.66
2020		656		93.84		61,526		0.00			1.05			22.52
2019		708		76.60		54,217		0.09			1.05			29.93
Personal Strategy Balanced:
2023		6,918		38.01		262,953		2.28			1.05			14.15
2022		7,394		33.30		246,220		1.57			1.05			(19.16	)
2021		7,466		41.19		307,533		0.98			1.05			8.92
2020		7,665		37.82		289,878		1.38			1.05			13.35
2019		8,801		33.37		293,658		1.88			1.05			18.56
Blue Chip:
2023		2,965		46.44		137,688		0.00			1.05			47.74
2022		3,480		31.43		109,370		0.00			1.05			(39.14	)
2021		3,438		51.65		177,560		0.00			1.05			16.40
2020		3,457		44.37		153,391		0.00			1.05			32.88
2019		3,396		33.39		113,382		0.00			1.05			28.54
Limited-Term Bond:
2023		10,814		12.98		140,387		3.32			1.05			3.85
2022		11,142		12.50		139,282		1.94			1.05			(5.51	)
2021		11,374		13.23		150,475		1.33			1.05			(0.91	)
2020		11,014		13.35		147,058		1.97			1.05			3.62
2019		10,819		12.88		139,395		2.41			1.05			3.27
Prime Reserve:
2022*		—		—		—		0.05			1.05			(1.02	)
2021		6,031		10.06		60,672		0.01			1.05			(1.03	)
2020		6,179		10.17		62,813		0.26			1.05			(0.79	)
2019		6,261		10.25		64,147		1.74			1.05			0.66
Income Securities:
2023		—		20.10		—		0.00			1.05			7.74
2022		—		18.65		—		0.00			1.05			(6.22	)
2021		—		19.89		—		0.00			1.05			15.79
2020		—		17.18		—		0.00			1.05			(0.08	)
2019		—		17.19		—		0.00			1.05			15.21
Small Cap Value:
2023		2,835		29.59		83,903		0.72			1.05			11.85
2022		3,251		26.46		86,014		1.23			1.05			(10.75	)
2021		3,204		29.65		94,977		1.13			1.05			24.36
2020		3,152		23.84		75,140		1.70			1.05			4.31
2019		2,944		22.85		67,268		1.45			1.05			25.41

*Liquidated on May 6, 2022

(Continued)

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2023 and 2022

										Ratio of
	As of December 31						Investment			expenses to
			Unit		Net		income			average			Total
	Units		value (1)		assets		ratio (2)			net assets (3)			return (4)
Small-Mid Cap:
2023		591	$	33.94	$	20,053		0.00	%		1.05	%		25.81	%
2022		585		26.98		15,788		0.00			1.05			(34.21	)
2021		580		41.00		23,763		0.00			1.05			9.11
2020		583		37.58		21,910		0.00			1.05			53.91
2019		577		24.42		14,089		0.00			1.05			30.43
Mutual Shares:
2023		434		20.18		8,756		2.16			1.05			12.55
2022		495		17.93		8,872		2.15			1.05			(8.12	)
2021		495		19.52		9,667		3.08			1.05			18.28
2020		496		16.50		8,180		3.11			1.05			(5.84	)
2019		496		17.52		8,684		2.11			1.05			21.64
Global Income:
2023		93		13.14		1,221		0.00			1.05			2.12
2022		93		12.87		1,202		0.00			1.05			(5.83	)
2021		87		13.67		1,186		0.00			1.05			(5.62	)
2020		81		14.48		1,169		8.50			1.05			(6.06	)
2019		81		15.41		1,252		6.74			1.05			1.19
Rising Dividends:
2023		144		37.33		5,379		1.11			1.05			11.23
2022		148		33.56		4,969		1.03			1.05			(11.27	)
2021		119		37.82		4,488		1.04			1.05			25.78
2020		116		30.07		3,482		1.46			1.05			15.02
2019		112		26.15		2,930		1.48			1.05			28.24

(1)

The accumulation unit value represents the ending unit value of each open and available subaccount whether or not there is activity at the end of the period in the underlying fund.

(2)

These ratios represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying fund, divided by the average net assets. 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 subaccounts invest. Ratios presented as 0.00 may earn investment income but are recorded as such due to rounding.

(3)

These ratios represent the annualized policy expenses of the separate account, consisting primarily of mortality and expense risk charges, for the period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to policyholder accounts through the redemption of units and expenses of the underlying fund are excluded.

(4)

These ratios represent the total return for the period indicated, including changes in the value of the und 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.