|   | AXA Equitable Life Insurance Company                   |   |
|--------|--------------------------------------------------------|--------|
|   | (Exact name of registrant as specified in its charter) |   |

|   | New York                        |   | 13-5570651          |   |   |
|--------|---------------------------------|--------|---------------------|--------|--------|
|   | (State or other jurisdiction of |   | (I.R.S. Employer    |   |   |
|   | incorporation or organization)  |   | Identification No.) |   |   |

|   | 1290 Avenue of the Americas, New York, New York |   | 10104      |   |
|--------|-------------------------------------------------|--------|------------|--------|
|   | (Address of principal executive offices)        |   | (Zip Code) |   |

|   | (212) 554-1234                                           |   |
|--------|----------------------------------------------------------|--------|
|   | Registrant’s telephone number, including area code |   |

|                                                                                | Not applicable |   |
|-------------------------------------------------------------------------------------|----------------|--------|
| (Former name, former address, and former fiscal year if changed since last report.) |

|   | Yes | x | No | o |
|--------|-----|---|----|---|

|   | Yes | o | No | o |
|--------|-----|---|----|---|

| Large accelerated filer  o                                                         |   | Accelerated filer  o         |
|----------------------------------------------------------------------------------------------|--------|----------------------------------------|
| Non-accelerated filer  x  (Do not check if a smaller reporting company.) |   | Smaller reporting company  o |

|   | Yes   o | No  x |
|--------|-------------------|------------|

----

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|   |   | Page |
|--------|--------|------|

| PART I | FINANCIAL INFORMATION |   |
|--------|-----------------------|--------|

| Item 1:    | Consolidated Financial Statements (Unaudited)                                             |    |
|------------|-------------------------------------------------------------------------------------------|---------|
|       | · Consolidated Balance Sheets, June 30, 2010 and December 31, 2009              |  4 |
|       | · Consolidated Statements of Earnings (Loss), Three Months and Six Months Ended |    |
|       | June 30, 2010 and 2009                                                                    |  5 |
|       | · Consolidated Statements of Equity, Six Months Ended                           |    |
|       | June 30, 2010 and 2009                                                                    |  7 |
|       | · Consolidated Statements of Cash Flows, Six Months Ended                       |    |
|       | June 30, 2010 and 2009                                                                    |  8 |
|       | · Notes to Consolidated Financial Statements                                    | 10      |
|       |                                                                                      |    |
| Item 2:    | Management’s Discussion and Analysis of Financial Condition and                     |    |
|       | Results of Operations                                                                     | 50      |
|       |                                                                                      |    |
| Item 3:    | Quantitative and Qualitative Disclosures About Market Risk*                               | 57      |
|       |                                                                                      |    |
| Item 4(T): | Controls and Procedures                                                                   | 57      |
|       |                                                                                      |    |
|       |                                                                                      |    |
| PART II    | OTHER INFORMATION                                                                         |    |
|       |                                                                                      |    |
| Item 1:    | Legal Proceedings                                                                         | 58      |
|       |                                                                                      |    |
| Item 1A:   | Risk Factors                                                                              | 58      |
|       |                                                                                      |    |
| Item 2:    | Unregistered Sales of Equity Securities and Use of Proceeds *                             | 58      |
|       |                                                                                      |    |
| Item 3:    | Defaults Upon Senior Securities *                                                         | 58      |
|       |                                                                                      |    |
| Item 4:    | (Removed and Reserved)                                                                    | 58      |
|       |                                                                                      |    |
| Item 5:    | Other Information                                                                         | 58      |
|       |                                                                                      |    |
| Item 6:    | Exhibits                                                                                  | 58      |
|       |                                                                                      |    |
| SIGNATURES |                                                                                      | 59      |

----

----

|                                                          |   | June 30,      |      |   | December 31, |   |
|---------------------------------------------------------------|--------|---------------|-----------|--------|--------------|--------|
|                                                          |   | 2010          |      |   | 2009         |   |
|                                                          |   | (In Millions) |      |
| ASSETS                                                        |   |          |      |   |         |   |
| Investments:                                                  |   |          |      |   |         |   |
| Fixed maturities available for sale, at fair value            |   | $             | 28,876.2  |   |         | $      | 27,470.2 |   |
| Mortgage loans on real estate                                 |   |          | 3,560.3   |   |         |   | 3,554.8 |   |
| Equity real estate, held for the production of income         |   |          | 109.0     |   |         |   | 98.5 |   |
| Policy loans                                                  |   |          | 3,605.4   |   |         |   | 3,616.8 |   |
| Other equity investments                                      |   |          | 1,550.5   |   |         |   | 1,562.3 |   |
| Trading securities                                            |   |          | 490.5     |   |         |   | 484.6 |   |
| Other invested assets                                         |   |          | 1,654.8   |   |         |   | 1,482.6 |   |
| Total investments                                             |   |          | 39,846.7  |   |         |   | 38,269.8 |   |
| Cash and cash equivalents                                     |   |          | 3,450.1   |   |         |   | 1,791.7 |   |
| Cash and securities segregated, at fair value                 |   |          | 945.3     |   |         |   | 985.7 |   |
| Broker-dealer related receivables                             |   |          | 1,156.8   |   |         |   | 1,087.6 |   |
| Deferred policy acquisition costs                             |   |          | 7,746.9   |   |         |   | 7,745.2 |   |
| Goodwill and other intangible assets, net                     |   |          | 3,664.2   |   |         |   | 3,676.5 |   |
| Amounts due from reinsurers                                   |   |          | 3,097.7   |   |         |   | 3,028.2 |   |
| Loans to affiliates                                           |   |          | 1,046.6   |   |         |   | 1,048.3 |   |
| Other assets                                                  |   |          | 9,834.3   |   |         |   | 8,254.9 |   |
| Separate Accounts’ assets                               |   |          | 79,317.6  |   |         |   | 84,016.5 |   |
|                                                          |   |          |      |   |         |   |   |   |
| Total Assets                                                  |   | $             | 150,106.2 |   |         | $      | 149,904.4 |   |
|                                                          |   |          |      |   |         |   |   |   |
| LIABILITIES                                                   |   |          |      |   |         |   |   |   |
| Policyholders’ account balances                         |   | $             | 24,375.7  |   |         | $      | 24,107.3 |   |
| Future policy benefits and other policyholders liabilities    |   |          | 18,754.4  |   |         |   | 17,726.7 |   |
| Broker-dealer related payables                                |   |          | 279.5     |   |         |   | 279.4 |   |
| Customers related payables                                    |   |          | 1,643.7   |   |         |   | 1,430.7 |   |
| Amounts due to reinsurers                                     |   |          | 69.6      |   |         |   | 81.2 |   |
| Short-term and long-term debt                                 |   |          | 279.0     |   |         |   | 449.0 |   |
| Loans from affiliates                                         |   |          | 1,325.0   |   |         |   | 1,325.0 |   |
| Income taxes payable                                          |   |          | 4,566.2   |   |         |   | 3,356.0 |   |
| Other liabilities                                             |   |          | 3,126.8   |   |         |   | 3,002.2 |   |
| Separate Accounts’ liabilities                          |   |          | 79,317.6  |   |         |   | 84,016.5 |   |
| Total liabilities                                             |   |          | 133,737.5 |   |         |   | 135,774.0 |   |
|                                                          |   |          |      |   |         |   |   |   |
| Commitments and contingent liabilities (Note 11)              |   |          |      |   |         |   |   |   |
|                                                          |   |          |      |   |         |   |   |   |
| EQUITY                                                        |   |          |      |   |         |   |   |   |
| AXA Equitable’s equity:                                 |   |          |      |   |         |   |   |   |
| Common stock, $1.25 par value, 2.0 million shares authorized, |   |          |      |   |         |   |   |   |
| issued and outstanding                                        |   |          | 2.5       |   |         |   | 2.5 |   |
| Capital in excess of par value                                |   |          | 5,595.4   |   |         |   | 5,582.3 |   |
| Retained earnings                                             |   |          | 8,298.8   |   |         |   | 6,311.8 |   |
| Accumulated other comprehensive loss                          |   |          | (647.9    | )      |         |   | (1,035.7 | ) |
| Total AXA Equitable’s equity                            |   |          | 13,248.8  |   |         |   | 10,860.9 |   |
| Noncontrolling interest                                       |   |          | 3,119.9   |   |         |   | 3,269.5 |   |
| Total equity                                                  |   |          | 16,368.7  |   |         |   | 14,130.4 |   |
|                                                          |   |          |      |   |         |   |   |   |
| Total Liabilities and Equity                                  |   | $             | 150,106.2 |   |         | $      | 149,904.4 |   |

----

|                                                |   | Three Months Ended  |    |   | Six Months Ended |   |
|-----------------------------------------------------|--------|---------------------|---------|--------|------------------|--------|
|                                                |   | June 30,            |    |   | June 30,         |   |
|                                                |   | 2010                |    |   | 2009        |   |   | 2010 |   |   | 2009  |   |
|                                                |   |  (In Millions) |    |
|                                                |   |                |    |   |             |   |   |   |   |   |   |   |
| REVENUES                                            |   |                |    |   |             |   |   |   |   |   |   |   |
| Universal life and investment-type                  |   |                |    |   |             |   |   |   |   |   |   |   |
| product policy fee income                           |   | $                   | 766.3   |   |             | $      | 732.6 |   |   | $ | 1,489.6 |   |   | $ | 1,410.3 |   |
| Premiums                                            |   |                | 128.1   |   |             |   | 112.9 |   |   |   | 276.3 |   |   |   | 240.8 |   |
| Net investment income (loss):                       |   |                |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Investment income (loss) from                       |   |                |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| derivative instruments                              |   |                | 1,259.9 |   |             |   | (1,976.3 | ) |   |   | 1,105.2 |   |   |   | (1,753.8 | ) |
| Other investment income                             |   |                | 502.0   |   |             |   | 540.3 |   |   |   | 1,052.0 |   |   |   | 863.0 |   |
| Total net investment income (loss)                  |   |                | 1,761.9 |   |             |   | (1,436.0 | ) |   |   | 2,157.2 |   |   |   | (890.8 | ) |
| Investment (losses) gains, net:                     |   |                |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total other-than-temporary impairment losses        |   |                | (43.5   | )      |             |   | (65.7 | ) |   |   | (75.8 | ) |   |   | (93.2 | ) |
| Portion of loss recognized in other                 |   |                |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| comprehensive income                                |   |                | 2.6     |   |             |   | 3.3 |   |   |   | 4.9 |   |   |   | 3.3 |   |
| Net impairment losses recognized                    |   |                | (40.9   | )      |             |   | (62.4 | ) |   |   | (70.9 | ) |   |   | (89.9 | ) |
| Other investment gains, net                         |   |                | 14.2    |   |             |   | 9.9 |   |   |   | 44.6 |   |   |   | 175.9 |   |
| Total investment (losses) gains, net                |   |                | (26.7   | )      |             |   | (52.5 | ) |   |   | (26.3 | ) |   |   | 86.0 |   |
| Commissions, fees and other income                  |   |                | 930.5   |   |             |   | 807.3 |   |   |   | 1,843.3 |   |   |   | 1,576.0 |   |
| Increase (decrease) in fair value                   |   |                |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| of reinsurance contracts                            |   |                | 1,826.7 |   |             |   | (1,198.1 | ) |   |   | 1,779.8 |   |   |   | (2,135.8 | ) |
| Total revenues                                      |   |                | 5,386.8 |   |             |   | (1,033.8 | ) |   |   | 7,519.9 |   |   |   | 286.5 |   |
|                                                |   |                |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| BENEFITS AND OTHER DEDUCTIONS                       |   |                |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Policyholders’ benefits                       |   |                | 1,224.5 |   |             |   | (92.6 | ) |   |   | 1,808.5 |   |   |   | 488.8 |   |
| Interest credited to policyholders’           |   |                |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| account balances                                    |   |                | 215.5   |   |             |   | 246.1 |   |   |   | 448.6 |   |   |   | 504.2 |   |
| Compensation and benefits                           |   |                | 441.6   |   |             |   | 476.2 |   |   |   | 921.6 |   |   |   | 938.5 |   |
| Commissions                                         |   |                | 259.5   |   |             |   | 245.0 |   |   |   | 502.3 |   |   |   | 548.4 |   |
| Distribution related payments                  |   |                | 71.0    |   |             |   | 55.1 |   |   |   | 137.8 |   |   |   | 103.0 |   |
| Amortization of deferred sales commissions          |   |                | 12.2    |   |             |   | 13.8 |   |   |   | 24.3 |   |   |   | 28.7 |   |
| Interest expense                                    |   |                | 26.9    |   |             |   | 27.0 |   |   |   | 53.7 |   |   |   | 54.0 |   |
| Amortization of deferred policy acquisition costs   |   |                | 515.5   |   |             |   | (108.2 | ) |   |   | 368.5 |   |   |   | (73.6 | ) |
| Capitalization of deferred policy acquisition costs |   |                | (226.7  | )      |             |   | (233.9 | ) |   |   | (439.4 | ) |   |   | (529.4 | ) |
| Rent expense                                        |   |                | 56.0    |   |             |   | 60.2 |   |   |   | 124.8 |   |   |   | 124.7 |   |
| Amortization of other intangible assets             |   |                | 5.7     |   |             |   | 6.3 |   |   |   | 11.8 |   |   |   | 12.2 |   |
| Other operating costs and expenses                  |   |                | 311.1   |   |             |   | 334.6 |   |   |   | 639.5 |   |   |   | 659.4 |   |
| Total benefits and other deductions                 |   |                | 2,912.8 |   |             |   | 1,029.6 |   |   |   | 4,602.0 |   |   |   | 2,858.9 |   |

----

|                                                   |   | Three Months Ended |    |   | Six Months Ended |   |
|--------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                                   |   | June 30,           |    |   | June 30,         |   |
|                                                   |   | 2010               |    |   | 2009             |   |   | 2010 |   |   | 2009 |   |
|                                                   |   | (In Millions)      |    |
|                                                   |   |               |    |   |             |   |   |   |   |   |   |   |
| Earnings (loss) from continuing operations             |   |               |    |   |             |   |   |   |   |   |   |   |
| before income taxes                                    |   | $                  | 2,474.0 |   |             | $      | (2,063.4 | ) |   | $ | 2,917.9 |   |   | $ | (2,572.4 | ) |
| Income tax (expense) benefit                           |   |               | (832.2  | )      |             |   | 796.8 |   |   |   | (808.2 | ) |   |   | 1,003.1 |   |
|                                                   |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) from continuing operations,            |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| net of income taxes                                    |   |               | 1,641.8 |   |             |   | (1,266.6 | ) |   |   | 2,109.7 |   |   |   | (1,569.3 | ) |
| Earnings from discontinued operations,                 |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| net of income taxes                                    |   |               | -       |   |             |   | 3.5 |   |   |   | - |   |   |   | 8.6 |   |
|                                                   |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net Earnings (loss)                                    |   |               | 1,641.8 |   |             |   | (1,263.1 | ) |   |   | 2,109.7 |   |   |   | (1,560.7 | ) |
| Less: net earnings attributable to the                 |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| noncontrolling interest                                |   |               | (50.9   | )      |             |   | (80.8 | ) |   |   | (122.7 | ) |   |   | (93.5 | ) |
|                                                   |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net Earnings (loss) Attributable to AXA Equitable      |   | $                  | 1,590.9 |   |             | $      | (1,343.9 | ) |   | $ | 1,987.0 |   |   | $ | (1,654.2 | ) |
|                                                   |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Amounts attributable to AXA Equitable:                 |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss)  from continuing operations, |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| net of income taxes                                    |   | $                  | 1,590.9 |   |             | $      | (1,347.4 | ) |   | $ | 1,987.0 |   |   | $ | (1,662.8 | ) |
| Earnings from discontinued operations,                 |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| net of income taxes                                    |   |               | -       |   |             |   | 3.5 |   |   |   | - |   |   |   | 8.6 |   |
|                                                   |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net Earnings (Loss)                                    |   | $                  | 1,590.9 |   |             | $      | (1,343.9 | ) |   | $ | 1,987.0 |   |   | $ | (1,654.2 | ) |

----

|                                                                      |   | 2010          |     |   | 2009   |   |
|---------------------------------------------------------------------------|--------|---------------|----------|--------|--------|--------|
|                                                                      |   | (In Millions) |     |
|                                                                      |   |          |     |
| EQUITY                                                                    |   |          |     |   |   |   |
| AXA Equitable’s Equity:                                             |   |          |     |   |   |   |
| Common stock, at par value, beginning of year and end of period           |   | $             | 2.5      |   |   | $      | 2.5 |   |
|                                                                      |   |          |     |   |   |   |   |   |
| Capital in excess of par value, beginning of year                         |   |          | 5,582.3  |   |   |   | 5,184.1 |   |
| Changes in capital in excess of par value                                 |   |          | 13.1     |   |   |   | 443.4 |   |
| Capital in excess of par value, end of period                             |   |          | 5,595.4  |   |   |   | 5,627.5 |   |
|                                                                      |   |          |     |   |   |   |   |   |
| Retained earnings, beginning of year                                      |   |          | 6,311.8  |   |   |   | 8,412.6 |   |
| Net earnings (loss) attributable to AXA Equitable                         |   |          | 1,987.0  |   |   |   | (1,654.2 | ) |
| Impact of implementing new accounting guidance, net of taxes              |   |          | -        |   |   |   | 62.0 |   |
| Retained earnings, end of period                                          |   |          | 8,298.8  |   |   |   | 6,820.4 |   |
|                                                                      |   |          |     |   |   |   |   |   |
| Accumulated other comprehensive loss, beginning of year                   |   |          | (1,035.7 | )      |   |   | (2,235.6 | ) |
| Impact of implementing new accounting guidance, net of taxes              |   |          | -        |   |   |   | (62.0 | ) |
| Other comprehensive income attributable to AXA Equitable                  |   |          | 387.8    |   |   |   | 519.8 |   |
| Accumulated other comprehensive loss, end of period                       |   |          | (647.9   | )      |   |   | (1,777.8 | ) |
|                                                                      |   |          |     |   |   |   |   |   |
| Total AXA Equitable’s equity, end of period                         |   |          | 13,248.8 |   |   |   | 10,672.6 |   |
|                                                                      |   |          |     |   |   |   |   |   |
| Noncontrolling interest, beginning of year                                |   |          | 3,269.5  |   |   |   | 2,896.9 |   |
| Purchase of AllianceBernstein Units by noncontrolling interest            |   |          | 5.2      |   |   |   | - |   |
| Exercise of AllianceBernstein Put                                         |   |          | -        |   |   |   | 135.0 |   |
| Dividends paid to noncontrolling interest                                 |   |          | (221.1   | )      |   |   | (86.7 | ) |
| Capital contributions                                                     |   |          | -        |   |   |   | 3.5 |   |
| Net earnings attributable to noncontrolling interest                      |   |          | 122.7    |   |   |   | 93.5 |   |
| Other comprehensive (loss) income attributable to noncontrolling interest |   |          | (48.3    | )      |   |   | 35.8 |   |
| Other changes in noncontrolling interest                                  |   |          | (8.1     | )      |   |   | 26.7 |   |
|                                                                      |   |          |     |   |   |   |   |   |
| Noncontrolling interest, end of period                                    |   |          | 3,119.9  |   |   |   | 3,104.7 |   |
|                                                                      |   |          |     |   |   |   |   |   |
| Total Equity, End of Period                                               |   | $             | 16,368.7 |   |   | $      | 13,777.3 |   |

----

|                                                                  |   | 2010          |     |   | 2009   |   |
|-----------------------------------------------------------------------|--------|---------------|----------|--------|--------|--------|
|                                                                  |   | (In Millions) |     |
|                                                                  |   |          |     |   |   |   |
| Net earnings (loss)                                                   |   | $             | 2,109.7  |   |   | $      | (1,560.7 | ) |
| Adjustments to reconcile net earnings (loss) to net cash provided     |   |          |     |   |   |   |   |   |
| by operating activities:                                              |   |          |     |   |   |   |   |   |
| Interest credited to policyholders’ account balances            |   |          | 448.6    |   |   |   | 504.2 |   |
| Universal life and investment-type product policy fee income          |   |          | (1,489.6 | )      |   |   | (1,410.3 | ) |
| Net change in broker-dealer and customer related receivables/payables |   |          | 58.6     |   |   |   | (1,308.7 | ) |
| (Income) loss on derivative instruments                               |   |          | (1,105.2 | )      |   |   | 1,870.1 |   |
| Change in reinsurance recoverable with affiliate                      |   |          | -        |   |   |   | 1,485.7 |   |
| Investment losses (gains), net                                        |   |          | 26.3     |   |   |   | (86.0 | ) |
| Change in segregated cash and securities, net                         |   |          | 40.4     |   |   |   | 1,326.5 |   |
| Change in deferred policy acquisition costs                           |   |          | (70.9    | )      |   |   | (603.0 | ) |
| Change in future policy benefits                                      |   |          | 760.3    |   |   |   | (584.4 | ) |
| Change in income tax payable                                          |   |          | 841.4    |   |   |   | (952.9 | ) |
| Change in fair value of guaranteed minimum income                     |   |          |     |   |   |   |   |   |
| benefit reinsurance contracts                                         |   |          | (1,779.8 | )      |   |   | 2,135.8 |   |
| Equity (income) loss in other limited partnerships                    |   |          | (43.4    | )      |   |   | 173.1 |   |
| Amortization of deferred sales commissions                            |   |          | 24.3     |   |   |   | 28.7 |   |
| Other depreciation and amortization                                   |   |          | 83.8     |   |   |   | 75.6 |   |
| Amortization of reinsurance cost                                      |   |          | 109.8    |   |   |   | 143.2 |   |
| Amortization of other intangible assets                               |   |          | 11.8     |   |   |   | 12.2 |   |
| Change in accounts payable and accrued expenses                       |   |          | 152.5    |   |   |   | 38.3 |   |
| Other, net                                                            |   |          | 120.5    |   |   |   | 54.8 |   |
|                                                                  |   |          |     |   |   |   |   |   |
| Net cash provided by operating activities                             |   |          | 299.1    |   |   |   | 1,342.2 |   |
|                                                                  |   |          |     |   |   |   |   |   |
| Cash flows from investing activities:                                 |   |          |     |   |   |   |   |   |
| Maturities and repayments of fixed maturities                         |   |          |     |   |   |   |   |   |
| and mortgage loans on real estate                                     |   |          | 998.8    |   |   |   | 906.0 |   |
| Sales of investments                                                  |   |          | 2,464.4  |   |   |   | 2,082.7 |   |
| Purchases of investments.                                             |   |          | (3,977.2 | )      |   |   | (2,080.0 | ) |
| Cash settlements related to derivative instruments                    |   |          | 259.1    |   |   |   | (2,156.4 | ) |
| Increase in loans to affiliates                                       |   |          | -        |   |   |   | (250.0 | ) |
| Change in short-term investments                                      |   |          | 24.3     |   |   |   | (12.6 | ) |
| Change in capitalized software, leasehold improvements                |   |          |     |   |   |   |   |   |
| and EDP equipment                                                     |   |          | (20.1    | )      |   |   | (100.2 | ) |
| Other, net                                                            |   |          | 28.2     |   |   |   | (64.2 | ) |
|                                                                  |   |          |     |   |   |   |   |   |
| Net cash used in investing activities                                 |   |          | (222.5   | )      |   |   | (1,674.7 | ) |

----

|                                                                   |   | 2010          |    |   | 2009   |   |
|------------------------------------------------------------------------|--------|---------------|---------|--------|--------|--------|
|                                                                   |   | (In Millions) |    |
|                                                                   |   |          |    |   |   |   |
| Cash flows from financing activities:                                  |   |          |    |   |   |   |
| Policyholders’ account balances:                                 |   |          |    |   |   |   |
| Deposits                                                               |   | $             | 1,540.8 |   |   | $      | 2,064.6 |   |
| Withdrawals and transfers to Separate Accounts                         |   |          | (184.6  | )      |   |   | (1,380.8 | ) |
| Net change in short-term financings                                    |   |          | (170.0  | )      |   |   | (.4 | ) |
| Decrease in collateralized pledged assets                              |   |          | 632.3   |   |   |   | - |   |
| Decrease in collateralized pledged liabilities                         |   |          | (13.0   | )      |   |   | (252.8 | ) |
| Capital contribution                                                   |   |          | -       |   |   |   | 438.9 |   |
| Distribution to non-controlling interests in consolidated subsidiaries |   |          | (221.1  | )      |   |   | (86.7 | ) |
| Other, net                                                             |   |          | (2.6    | )      |   |   | 66.1 |   |
|                                                                   |   |          |    |   |   |   |   |   |
| Net cash provided by financing activities                              |   |          | 1,581.8 |   |   |   | 848.9 |   |
|                                                                   |   |          |    |   |   |   |   |   |
| Change in cash and cash equivalents                                    |   |          | 1,658.4 |   |   |   | 516.4 |   |
| Cash and cash equivalents, beginning of year                           |   |          | 1,791.7 |   |   |   | 2,403.2 |   |
|                                                                   |   |          |    |   |   |   |   |   |
| Cash and Cash Equivalents, End of Period                               |   | $             | 3,450.1 |   |   | $      | 2,919.6 |   |
|                                                                   |   |          |    |   |   |   |   |   |
| Supplemental cash flow information                                     |   |          |    |   |   |   |   |   |
| Interest Paid                                                          |   | $             | .2      |   |   | $      | 8.6 |   |
| Income Taxes (Refunded) Paid                                           |   | $             | (211.8  | )      |   | $      | 37.7 |   |

----

| 1) | ORGANIZATION AND BASIS OF PRESENTATION |
|----|----------------------------------------|

| 2)   | ACCOUNTING CHANGES AND NEW ACCOUNTING PRONOUNCEMENTS |
|----------------|------------------------------------------------------|

----

----

----

| 3)   | INVESTMENTS |
|----------------|-------------|

|                            |   |          |     | Gross      |   |   | Gross      |   |   |       |   |   |        |   |
|---------------------------------|--------|---------------|----------|------------|--------|--------|------------|--------|--------|------------|--------|--------|-------------|--------|
|                            |   | Amortized     |     | Unrealized |   |   | Unrealized |   |   |       |   |   | OTTI        |   |
|                            |   | Cost          |     | Gains      |   |   | Losses     |   |   | Fair Value |   |   | in AOCI (3) |   |
|                            |   | (In Millions) |     |
|                            |   |          |     |       |   |   |       |   |   |       |   |   |        |   |   |
| June 30, 2010:                  |   |          |     |       |   |   |       |   |   |       |   |   |        |   |   |
| Fixed Maturities:               |   |          |     |       |   |   |       |   |   |       |   |   |        |   |   |
| Corporate                       |   | $             | 20,344.0 |       |   | $      | 1,486.0    |   |   | $          | 101.3  |   |        | $      | 21,728.7 |   |   | $ | .7 |   |
| U.S. Treasury, government       |   |          |     |       |   |   |       |   |   |       |   |   |        |   |   |   |   |   |   |   |
| and agency(4)                   |   |          | 1,951.5  |       |   |   | 27.4       |   |   |       | 37.9   |   |        |   | 1,941.0 |   |   |   | - |   |
| States and political            |   |          |     |       |   |   |       |   |   |       |   |   |        |   |   |   |   |   |   |   |
| subdivisions                    |   |          | 438.4    |       |   |   | 16.7       |   |   |       | 7.6    |   |        |   | 447.5 |   |   |   | - |   |
| Foreign governments             |   |          | 324.2    |       |   |   | 49.0       |   |   |       | .1     |   |        |   | 373.1 |   |   |   | - |   |
| Commercial mortgage-backed      |   |          | 1,785.2  |       |   |   | 1.8        |   |   |       | 543.7  |   |        |   | 1,243.3 |   |   |   | 5.9 |   |
| Residential mortgage-backed (1) |   |          | 1,382.1  |       |   |   | 78.1       |   |   |       | .1     |   |        |   | 1,460.1 |   |   |   | - |   |
| Asset-backed (2)                |   |          | 275.2    |       |   |   | 14.9       |   |   |       | 16.0   |   |        |   | 274.1 |   |   |   | 7.6 |   |
| Redeemable preferred stock      |   |          | 1,546.9  |       |   |   | 17.2       |   |   |       | 155.7  |   |        |   | 1,408.4 |   |   |   | - |   |
| Total Fixed Maturities          |   |          | 28,047.5 |       |   |   | 1,691.1    |   |   |       | 862.4  |   |        |   | 28,876.2 |   |   |   | 14.2 |   |
|                            |   |          |     |       |   |   |       |   |   |       |   |   |        |   |   |   |   |   |   |   |
| Equity securities               |   |          | 28.5     |       |   |   | .1         |   |   |       | 3.2    |   |        |   | 25.4 |   |   |   | - |   |
|                            |   |          |     |       |   |   |       |   |   |       |   |   |        |   |   |   |   |   |   |   |
| Total at June 30, 2010          |   | $             | 28,076.0 |       |   | $      | 1,691.2    |   |   | $          | 865.6  |   |        | $      | 28,901.6 |   |   | $ | 14.2 |   |
|                            |   |          |     |       |   |   |       |   |   |       |   |   |        |   |   |   |   |   |   |   |

| December 31, 2009               |   |   |     |   |   |   |    |   |   |   |    |   |   |   |     |
|---------------------------------|--------|--------|----------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|----------|
| Fixed Maturities:               |   |   |     |   |   |   |    |   |   |   |    |   |   |   |     |
| Corporate                       |   | $      | 19,437.7 |   |   | $      | 991.5   |   |   | $      | 235.1   |   |   | $      | 20,194.1 |   |   | $ | .7 |   |
| U.S. Treasury, government       |   |   |     |   |   |   |    |   |   |   |    |   |   |   |     |   |   |   |   |   |
| and agency                      |   |   | 1,830.1  |   |   |   | 12.4    |   |   |   | 152.5   |   |   |   | 1,690.0  |   |   |   | - |   |
| States and political            |   |   |     |   |   |   |    |   |   |   |    |   |   |   |     |   |   |   |   |   |
| subdivisions                    |   |   | 388.6    |   |   |   | 7.3     |   |   |   | 14.2    |   |   |   | 381.7    |   |   |   | - |   |
| Foreign governments             |   |   | 270.4    |   |   |   | 32.0    |   |   |   | .1      |   |   |   | 302.3    |   |   |   | - |   |
| Commercial mortgage-backed      |   |   | 1,979.6  |   |   |   | 2.2     |   |   |   | 492.0   |   |   |   | 1,489.8  |   |   |   | 1.8 |   |
| Residential mortgage-backed (1) |   |   | 1,604.6  |   |   |   | 46.2    |   |   |   | .2      |   |   |   | 1,650.6  |   |   |   | - |   |
| Asset-backed (2)                |   |   | 278.2    |   |   |   | 10.9    |   |   |   | 21.4    |   |   |   | 267.7    |   |   |   | 7.9 |   |
| Redeemable preferred stock      |   |   | 1,707.6  |   |   |   | 8.5     |   |   |   | 222.1   |   |   |   | 1,494.0  |   |   |   | - |   |
| Total Fixed Maturities          |   |   | 27,496.8 |   |   |   | 1,111.0 |   |   |   | 1,137.6 |   |   |   | 27,470.2 |   |   |   | 10.4 |   |
|                            |   |   |     |   |   |   |    |   |   |   |    |   |   |   |     |   |   |   |   |   |
| Equity securities               |   |   | 43.9     |   |   |   | 9.7     |   |   |   | -       |   |   |   | 53.6     |   |   |   | - |   |
|                            |   |   |     |   |   |   |    |   |   |   |    |   |   |   |     |   |   |   |   |   |
| Total at December 31, 2009      |   | $      | 27,540.7 |   |   | $      | 1,120.7 |   |   | $      | 1,137.6 |   |   | $      | 27,523.8 |   |   | $ | 10.4 |   |

|  (1)    | Includes publicly traded agency pass-through securities and collateralized mortgage obligations                                                                    |
|------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  (2)    | Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans                                            |
|  (3)    | Amounts represent OTTI losses in AOCI, which were not included in earnings in accordance with current accounting guidance.                                         |
|  (4)    | Reflects $121.6 million of amortized cost of FDIC insured bonds that were reported as Corporate in 2009 and moved to U.S. Treasury, government and agency in 2010. |

----

|                                                                                                                                                                      |   | Amortized     |     |   |       |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|------------|--------|
|                                                                                                                                                                      |   | Cost          |     |   | Fair Value |   |
|                                                                                                                                                                      |   | (In Millions) |     |
|                                                                                                                                                                      |   |          |     |
| Due in one year or less                                                                                                                                                   |   | $             | 1,787.9  |   |       | $      | 1,834.5 |   |
| Due in years two through five                                                                                                                                             |   |          | 8,871.7  |   |       |   | 9,381.9 |   |
| Due in years six through ten                                                                                                                                              |   |          | 7,994.7  |   |       |   | 8,616.2 |   |
| Due after ten years                                                                                                                                                       |   |          | 4,403.8  |   |       |   | 4,657.7 |   |
| Subtotal                                                                                                                                                                  |   |          | 23,058.1 |   |       |   | 24,490.3 |   |
| Commercial mortgage-backed securities                       |   |          | 1,785.2  |   |       |   | 1,243.3 |   |
| Residential mortgage-backed securities                                                                                                                                    |   |          | 1,382.1  |   |       |   | 1,460.1 |   |
| Asset-backed securities                                                                                                                                                   |   |          | 275.2    |   |       |   | 274.1 |   |
| Total                                                                                                                                                                     |   | $             | 26,500.6 |   |       | $      | 27,467.8 |   |

----

|                                 |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|--------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                 |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                 |   | (In Millions)              |   |
|                                 |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Credit losses recognized in earnings |   | $                          | 40.9   |   |                     | $      | 62.4 |   |   | $ | 70.9 |   |   | $ | 89.9 |   |
| Non-credit losses recognized in OCI  |   |                       | 2.6    |   |                     |   | 3.3 |   |   |   | 4.9 |   |   |   | 3.3 |   |
| Total OTTI                           |   | $                          | 43.5   |   |                     | $      | 65.7 |   |   | $ | 75.8 |   |   | $ | 93.2 |   |

|                                                                                   |   |          |   |   |   |   |
|----------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|--------|
|                                                                                   |   | 2010          |   |   | 2009   |   |
|                                                                                   |   | (In Millions) |   |
|                                                                                   |   |          |   |   |   |   |
| Balances at January 1,                                                                 |   | $             | (145.5 | )      |   | $      | (229.7 | ) |
| Previously recognized impairments on securities that matured, paid, prepaid or sold    |   |          | 3.1    |   |   |   | 3.4 |   |
| Previously recognized impairments on securities impaired to fair value this period (1) |   |          | -      |   |   |   | - |   |
| Impairments recognized this period on securities not previously impaired               |   |          | (30.0  | )      |   |   | (12.6 | ) |
| Additional impairments this period on securities previously impaired                   |   |          | -      |   |   |   | (14.9 | ) |
| Increases due to passage of time on previously recorded credit losses                  |   |          | -      |   |   |   | - |   |
| Accretion of previously recognized impairments due to increases in expected cash flows |   |          | -      |   |   |   | - |   |
| Balances at March 31,                                                                  |   |          | (172.4 | )      |   |   | (253.8 | ) |
| Cumulative adjustment related to new accounting guidance on April 1, 2009              |   |          | -      |   |   |   | 107.9 |   |
| Previously recognized impairments on securities that matured, paid, prepaid or sold    |   |          | 45.7   |   |   |   | 26.5 |   |
| Previously recognized impairments on securities impaired to fair value this period (1) |   |          | -      |   |   |   | - |   |
| Impairments recognized this period on securities not previously impaired               |   |          | (32.2  | )      |   |   | (55.2 | ) |
| Additional impairments this period on securities previously impaired                   |   |          | (8.8   | )      |   |   | (7.1 | ) |
| Increases due to passage of time on previously recorded credit losses                  |   |          | -      |   |   |   | - |   |
| Accretion of previously recognized impairments due to increases in expected cash flows |   |          | -      |   |   |   | - |   |
| Balances at June 30,                                                                   |   | $             | (167.7 | )      |   | $      | (181.7 | ) |

| (1) | Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                          |   | June 30,      |   |   | December 31, |   |
|-------------------------------|--------|---------------|--------|--------|--------------|--------|
|                          |   | 2010          |   |   | 2009         |   |
|                          |   | (In Millions) |   |
| AFS Securities:               |   |          |   |   |         |   |
| Fixed maturities:             |   |          |   |   |         |   |
| With OTTI loss                |   | $             | (7.2   | )      |         | $      | (10.9 | ) |
| All other                     |   |          | 835.9  |   |         |   | (15.7 | ) |
| Equity securities             |   |          | (3.0   | )      |         |   | 9.7 |   |
| Net Unrealized Gains (Losses) |   | $             | 825.7  |   |         | $      | (16.9 | ) |

|                                |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |
|-------------------------------------|--------|---------------|--------|--------|--------|--------|--------|---------------|--------|--------|-------------|--------|--------|----------------|--------|
|                                |   | Net           |   |   |   |   |   |          |   |   | Deferred    |   |   | AOCI Loss      |   |
|                                |   | Unrealized    |   |   |   |   |   |          |   |   | Income      |   |   | Related to Net |   |
|                                |   | (Losses)      |   |   |   |   |   |          |   |   | Tax         |   |   | Unrealized     |   |
|                                |   | Gains on      |   |   |   |   |   | Policyholders |   |   | (Liability) |   |   | Investment     |   |
|                                |   | Investments   |   |   | DAC    |   |   | Liabilities   |   |   | Asset       |   |   | Gains (Losses) |   |
|                                |   | (In Millions) |   |
|                                |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |
| Balance, March 31, 2010             |   | $             | (13.1  | )      |   | $      | 3.0    |          |   | $      | 2.4         |   |   | $              | 2.7    |   |   | $ | (5.0 | ) |
| Net investment gains                |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| arising during the period           |   |          | 17.2   |   |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | 17.2 |   |
| Reclassification adjustment for     |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| OTTI losses:                        |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| Included in Net earnings            |   |          | (8.8   | )      |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | (8.8 | ) |
| Excluded from Net earnings (1)      |   |          | (2.5   | )      |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | (2.5 | ) |
| Impact of net unrealized investment |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| gains (losses) on:                  |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| DAC                                 |   |          | -      |   |   |   | (2.3   | )             |   |   | -           |   |   |           | -      |   |   |   | (2.3 | ) |
| Deferred income taxes               |   |          | -      |   |   |   | -      |          |   |   | -           |   |   |           | (.9    | ) |   |   | (.9 | ) |
| Policyholders liabilities           |   |          | -      |   |   |   | -      |          |   |   | (1.0        | )      |   |           | -      |   |   |   | (1.0 | ) |
| Balance, June 30, 2010              |   | $             | (7.2   | )      |   | $      | .7     |          |   | $      | 1.4         |   |   | $              | 1.8    |   |   | $ | (3.3 | ) |
|                                |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
|                                |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| Balance, January 1, 2010            |   | $             | (10.9  | )      |   | $      | 5.3    |          |   | $      | -           |   |   | $              | 1.9    |   |   | $ | (3.7 | ) |
| Net investment gains                |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| arising during the period           |   |          | 17.3   |   |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | 17.3 |   |
| Reclassification adjustment for     |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| OTTI losses:                        |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| Included in Net earnings            |   |          | (8.8   | )      |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | (8.8 | ) |
| Excluded from Net earnings (1)      |   |          | (4.8   | )      |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | (4.8 | ) |
| Impact of net unrealized investment |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| gains (losses) on:                  |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| DAC                                 |   |          | -      |   |   |   | (4.6   | )             |   |   | -           |   |   |           | -      |   |   |   | (4.6 | ) |
| Deferred income taxes               |   |          | -      |   |   |   | -      |          |   |   | -           |   |   |           | (.1    | ) |   |   | (.1 | ) |
| Policyholders liabilities           |   |          | -      |   |   |   | -      |          |   |   | 1.4         |   |   |           | -      |   |   |   | 1.4 |   |
| Balance, June 30, 2010              |   | $             | (7.2   | )      |   | $      | .7     |          |   | $      | 1.4         |   |   | $              | 1.8    |   |   | $ | (3.3 | ) |

|  (1)   | Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss |
|-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                |   |          |   |   |   |   |   |          |   |   |     |   |   |           |   |
|-------------------------------------|--------|---------------|--------|--------|--------|--------|--------|---------------|--------|--------|----------|--------|--------|----------------|--------|
|                                |   | Net           |   |   |   |   |   |          |   |   |     |   |   | AOCI Loss      |   |
|                                |   | Unrealized    |   |   |   |   |   |          |   |   | Deferred |   |   | Related to Net |   |
|                                |   | (Losses)      |   |   |   |   |   |          |   |   | Income   |   |   | Unrealized     |   |
|                                |   | Gains on      |   |   |   |   |   | Policyholders |   |   | Tax      |   |   | Investment     |   |
|                                |   | Investments   |   |   | DAC    |   |   | Liabilities   |   |   | Asset    |   |   | Gains (Losses) |   |
|                                |   | (In Millions) |   |
|                                |   |          |   |   |   |   |   |          |   |   |     |   |   |           |   |
| Balance, March 31, 2009             |   | $             | -      |   |   | $      | -      |          |   | $      | -        |   |   | $              | -      |   |   | $ | - |   |
| Cumulative impact of implementing   |   |          |   |   |   |   |   |          |   |   |     |   |   |           |   |   |   |   |   |   |
| new guidance                        |   |          | (5.4   | )      |   |   | .6     |          |   |   | -        |   |   |           | 1.7    |   |   |   | (3.1 | ) |
| Net investment losses               |   |          |   |   |   |   |   |          |   |   |     |   |   |           |   |   |   |   |   |   |
| arising during the period           |   |          | (4.8   | )      |   |   | -      |          |   |   | -        |   |   |           | -      |   |   |   | (4.8 | ) |
| Reclassification adjustment for     |   |          |   |   |   |   |   |          |   |   |     |   |   |           |   |   |   |   |   |   |
| OTTI losses:                        |   |          |   |   |   |   |   |          |   |   |     |   |   |           |   |   |   |   |   |   |
| Included in Net loss           |   |          | 1.2    |   |   |   | -      |          |   |   | -        |   |   |           | -      |   |   |   | 1.2 |   |
| Excluded from Net loss (1)          |   |          | (3.1   | )      |   |   | -      |          |   |   | -        |   |   |           | -      |   |   |   | (3.1 | ) |
| Impact of net unrealized investment |   |          |   |   |   |   |   |          |   |   |     |   |   |           |   |   |   |   |   |   |
| gains on:                           |   |          |   |   |   |   |   |          |   |   |     |   |   |           |   |   |   |   |   |   |
| DAC                                 |   |          | -      |   |   |   | 1.4    |          |   |   | -        |   |   |           | -      |   |   |   | 1.4 |   |
| Deferred income taxes               |   |          | -      |   |   |   | -      |          |   |   | -        |   |   |           | 1.9    |   |   |   | 1.9 |   |
| Policyholders liabilities           |   |          | -      |   |   |   | -      |          |   |   | -        |   |   |           | -      |   |   |   | - |   |
| Balance, June 30, 2009              |   | $             | (12.1  | )      |   | $      | 2.0    |          |   | $      | -        |   |   | $              | 3.6    |   |   | $ | (6.5 | ) |

|  (1)   | Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss |
|-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |
|-------------------------------------|--------|---------------|--------|--------|--------|--------|--------|---------------|--------|--------|-------------|--------|--------|----------------|--------|
|                                |   | Net           |   |   |   |   |   |          |   |   | Deferred    |   |   | AOCI Gain      |   |
|                                |   | Unrealized    |   |   |   |   |   |          |   |   | Income      |   |   | Related to Net |   |
|                                |   | Gains         |   |   |   |   |   |          |   |   | Tax         |   |   | Unrealized     |   |
|                                |   | (Losses) on   |   |   |   |   |   | Policyholders |   |   | (Liability) |   |   | Investment     |   |
|                                |   | Investments   |   |   | DAC    |   |   | Liabilities   |   |   | Asset       |   |   | Gains (Losses) |   |
|                                |   | (In Millions) |   |
|                                |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |
| Balance, March 31, 2010             |   | $             | 313.2  |   |   | $      | (56.2  | )             |   | $      | (57.4       | )      |   | $              | (69.7  | ) |   | $ | 129.9 |   |
| Net investment gains                |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| arising during the period           |   |          | 498.9  |   |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | 498.9 |   |
| Reclassification adjustment for     |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| OTTI losses:                        |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| Included in Net earnings            |   |          | 18.3   |   |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | 18.3 |   |
| Excluded from Net earnings (1)      |   |          | 2.5    |   |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | 2.5 |   |
| Impact of net unrealized investment |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| gains (losses) on:                  |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| DAC                                 |   |          | -      |   |   |   | (36.4  | )             |   |   | -           |   |   |           | -      |   |   |   | (36.4 | ) |
| Deferred income taxes               |   |          | -      |   |   |   | -      |          |   |   | -           |   |   |           | (132.5 | ) |   |   | (132.5 | ) |
| Policyholders liabilities           |   |          | -      |   |   |   | -      |          |   |   | (108.6      | )      |   |           | -      |   |   |   | (108.6 | ) |
| Balance, June 30, 2010              |   | $             | 832.9  |   |   | $      | (92.6  | )             |   | $      | (166.0      | )      |   | $              | (202.2 | ) |   | $ | 372.1 |   |
|                                |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| Balance, January 1, 2010            |   | $             | (6.1   | )      |   | $      | (21.2  | )             |   | $      | -           |   |   | $              | 32.3   |   |   | $ | 5.0 |   |
| Net investment gains (losses)       |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| arising during the period           |   |          | 811.7  |   |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | 811.7 |   |
| Reclassification adjustment for     |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| OTTI losses:                        |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| Included in Net earnings            |   |          | 22.5   |   |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | 22.5 |   |
| Excluded from Net earnings (1)      |   |          | 4.8    |   |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | 4.8 |   |
| Impact of net unrealized investment |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| gains (losses) on:                  |   |          |   |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| DAC                                 |   |          | -      |   |   |   | (71.4  | )             |   |   | -           |   |   |           | -      |   |   |   | (71.4 | ) |
| Deferred income taxes               |   |          | -      |   |   |   | -      |          |   |   | -           |   |   |           | (234.5 | ) |   |   | (234.5 | ) |
| Policyholders liabilities           |   |          | -      |   |   |   | -      |          |   |   | (166.0      | )      |   |           | -      |   |   |   | (166.0 | ) |
| Balance, June 30, 2010              |   | $             | 832.9  |   |   | $      | (92.6  | )             |   | $      | (166.0      | )      |   | $              | (202.2 | ) |   | $ | 372.1 |   |

|  (1)   | Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss |
|-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                |   |          |     |   |   |   |   |          |   |   |        |   |   |           |   |
|-------------------------------------|--------|---------------|----------|--------|--------|--------|--------|---------------|--------|--------|-------------|--------|--------|----------------|--------|
|                                |   | Net           |     |   |   |   |   |          |   |   | Deferred    |   |   | AOCI Loss      |   |
|                                |   | Unrealized    |     |   |   |   |   |          |   |   | Income      |   |   | Related to Net |   |
|                                |   | (Losses)      |     |   |   |   |   |          |   |   | Tax         |   |   | Unrealized     |   |
|                                |   | Gains on      |     |   |   |   |   | Policyholders |   |   | Asset       |   |   | Investment     |   |
|                                |   | Investments   |     |   | DAC    |   |   | Liabilities   |   |   | (Liability) |   |   | Gains (Losses) |   |
|                                |   | (In Millions) |     |
|                                |   |          |     |   |   |   |   |          |   |   |        |   |   |           |   |
| Balance, March 31, 2009             |   | $             | (3,007.3 | )      |   | $      | 812.7  |          |   | $      | -           |   |   | $              | 787.6  |   |   | $ | (1,407.0 | ) |
| Cumulative impact of implementing   |   |          |     |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| new guidance                        |   |          | (102.6   | )      |   |   | 19.4   |          |   |   | -           |   |   |           | 29.1   |   |   |   | (54.1 | ) |
| Net investment gains (losses)       |   |          |     |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| arising during the period           |   |          | 1,718.8  |   |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | 1,718.8 |   |
| Reclassification adjustment for     |   |          |     |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| OTTI losses:                        |   |          |     |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| Included in Net loss                |   |          | (69.1    | )      |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | (69.1 | ) |
| Excluded from Net loss (1)          |   |          | 3.1      |   |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | 3.1 |   |
| Impact of net unrealized investment |   |          |     |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| losses on:                          |   |          |     |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| DAC                                 |   |          | -        |   |   |   | (533.9 | )             |   |   | -           |   |   |           | -      |   |   |   | (533.9 | ) |
| Deferred income taxes               |   |          | -        |   |   |   | -      |          |   |   | -           |   |   |           | (414.8 | ) |   |   | (414.8 | ) |
| Policyholders liabilities           |   |          | -        |   |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | - |   |
| Balance, June 30, 2009              |   | $             | (1,457.1 | )      |   | $      | 298.2  |          |   | $      | -           |   |   | $              | 401.9  |   |   | $ | (757.0 | ) |
|                                |   |          |     |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| Balance, January 1, 2009            |   | $             | (2,384.9 | )      |   | $      | 553.6  |          |   | $      | -           |   |   | $              | 681.3  |   |   | $ | (1,150.0 | ) |
| Cumulative impact of implementing   |   |          |     |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| new guidance                        |   |          | (102.6   | )      |   |   | 19.4   |          |   |   | -           |   |   |           | 29.1   |   |   |   | (54.1 | ) |
| Net investment gains (losses)       |   |          |     |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| arising during the period           |   |          | 1,254.3  |   |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | 1,254.3 |   |
| Reclassification adjustment for     |   |          |     |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| OTTI losses:                        |   |          |     |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| Included in Net loss                |   |          | (227.0   | )      |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | (227.0 | ) |
| Excluded from Net loss (1)          |   |          | 3.1      |   |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | 3.1 |   |
| Impact of net unrealized investment |   |          |     |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| losses on:                          |   |          |     |   |   |   |   |          |   |   |        |   |   |           |   |   |   |   |   |   |
| DAC                                 |   |          | -        |   |   |   | (274.8 | )             |   |   | -           |   |   |           | -      |   |   |   | (274.8 | ) |
| Deferred income taxes               |   |          | -        |   |   |   | -      |          |   |   | -           |   |   |           | (308.5 | ) |   |   | (308.5 | ) |
| Policyholders liabilities           |   |          | -        |   |   |   | -      |          |   |   | -           |   |   |           | -      |   |   |   | - |   |
| Balance, June 30, 2009              |   | $             | (1,457.1 | )      |   | $      | 298.2  |          |   | $      | -           |   |   | $              | 401.9  |   |   | $ | (757.0 | ) |

|  (1)   | Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss |
|-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                        |   | June 30, 2010       |    |
|-----------------------------|--------|---------------------|---------|
|                        |   | Less Than 12 Months |    |   | 12 Months or Longer |   |   | Total |   |
|                        |   |                |    |   | Gross |   |   |   |   |   | Gross |   |   |   |   |   | Gross |   |
|                        |   |                |    |   | Unrealized |   |   |   |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
|                        |   | Fair Value          |    |   | Losses |   |   | Fair Value |   |   | Losses |   |   | Fair Value |   |   | Losses |   |
|                        |   | (In Millions)       |    |
|                        |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed Maturities:           |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate                   |   | $                   | 956.3   |   |   | $ | (22.3 | ) |   | $ | 859.4 |   |   | $ | (79.0 | ) |   | $ | 1,815.7 |   |   | $ | (101.3 | ) |
| U.S. Treasury,              |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| government and              |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| agency                      |   |                | 191.4   |   |   |   | (10.8 | ) |   |   | 425.1 |   |   |   | (27.1 | ) |   |   | 616.5 |   |   |   | (37.9 | ) |
| States and political        |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| subdivisions                |   |                | 85.7    |   |   |   | (3.1 | ) |   |   | 15.7 |   |   |   | (4.5 | ) |   |   | 101.4 |   |   |   | (7.6 | ) |
| Foreign governments         |   |                | 5.8     |   |   |   | (.1 | ) |   |   | 4.2 |   |   |   | - |   |   |   | 10.0 |   |   |   | (.1 | ) |
| Commercial mortgage-backed  |   |                | 32.6    |   |   |   | (5.9 | ) |   |   | 1,130.0 |   |   |   | (537.8 | ) |   |   | 1,162.6 |   |   |   | (543.7 | ) |
| Residential mortgage-backed |   |                | -       |   |   |   | - |   |   |   | 2.1 |   |   |   | (.1 | ) |   |   | 2.1 |   |   |   | (.1 | ) |
| Asset-backed                |   |                | 53.7    |   |   |   | (5.5 | ) |   |   | 63.6 |   |   |   | (10.5 | ) |   |   | 117.3 |   |   |   | (16.0 | ) |
| Redeemable                  |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| preferred stock             |   |                | 104.4   |   |   |   | (2.3 | ) |   |   | 1,096.4 |   |   |   | (153.4 | ) |   |   | 1,200.8 |   |   |   | (155.7 | ) |
|                        |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                       |   | $                   | 1,429.9 |   |   | $ | (50.0 | ) |   | $ | 3,596.5 |   |   | $ | (812.4 | ) |   | $ | 5,026.4 |   |   | $ | (862.4 | ) |

|                  |   | December 31, 2009       |    |
|-----------------------|--------|-------------------------|---------|
|                  |   | Less Than 12 Months (1) |    |   | 12 Months or Longer (1) |   |   | Total |   |
|                  |   |                    |    |   | Gross |   |   |   |   |   | Gross |   |   |   |   |   | Gross |   |
|                  |   |                    |    |   | Unrealized |   |   |   |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
|                  |   | Fair Value              |    |   | Losses |   |   | Fair Value |   |   | Losses |   |   | Fair Value |   |   | Losses |   |
|                  |   | (In Millions)           |    |
|                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed Maturities:     |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate             |   | $                       | 2,043.5 |   |   | $ | (53.9 | ) |   | $ | 2,022.3 |   |   | $ | (181.2 | ) |   | $ | 4,065.8 |   |   | $ | (235.1 | ) |
| U.S. Treasury,        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| government and        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| agency                |   |                    | 1,591.7 |   |   |   | (152.4 | ) |   |   | - |   |   |   | - |   |   |   | 1,591.7 |   |   |   | (152.4 | ) |
| States and political  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| subdivisions          |   |                    | 209.7   |   |   |   | (10.5 | ) |   |   | 23.5 |   |   |   | (3.7 | ) |   |   | 233.2 |   |   |   | (14.2 | ) |
| Foreign governments   |   |                    | 41.0    |   |   |   | (.1 | ) |   |   | 5.1 |   |   |   | - |   |   |   | 46.1 |   |   |   | (.1 | ) |
| Commercial mortgage-  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| backed                |   |                    | 33.6    |   |   |   | (15.7 | ) |   |   | 1,348.8 |   |   |   | (476.2 | ) |   |   | 1,382.4 |   |   |   | (491.9 | ) |
| Residential mortgage- |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| backed                |   |                    | 54.1    |   |   |   | (.1 | ) |   |   | 2.4 |   |   |   | (.2 | ) |   |   | 56.5 |   |   |   | (.3 | ) |
| Asset-backed          |   |                    | 48.6    |   |   |   | (8.5 | ) |   |   | 68.6 |   |   |   | (12.9 | ) |   |   | 117.2 |   |   |   | (21.4 | ) |
| Redeemable            |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| preferred stock       |   |                    | 51.2    |   |   |   | (6.6 | ) |   |   | 1,283.3 |   |   |   | (215.6 | ) |   |   | 1,334.5 |   |   |   | (222.2 | ) |
|                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                 |   | $                       | 4,073.4 |   |   | $ | (247.8 | ) |   | $ | 4,754.0 |   |   | $ | (889.8 | ) |   | $ | 8,827.4 |   |   | $ | (1,137.6 | ) |

|  (1)   | Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss |
|-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   |   |             |                          |
|--------|--------|------------------|-------------------------------|
|   |   |             |  Gains (Losses) Reported |
|   |   |  Fair Value |  In Net Earnings         |

|                              |   | Notional      |     |   | Asset       |   |    | Liability   |   |   | Six Months Ended June 30 |   |
|-----------------------------------|--------|---------------|----------|--------|-------------|--------|---------|-------------|--------|--------|--------------------------|--------|
|                              |   | Amount        |     |   | Derivatives |   |    | Derivatives |   |   |                     |
|                              |   | (In Millions) |     |
| Freestanding derivatives:         |   |          |     |   |        |   |    |        |   |   |                     |   |
| Equity contracts (1):        |   |          |     |   |        |   |    |        |   |   |                     |   |
| Futures                           |   | $             | 4,921.2  |   |        | $      | .8      |        |   | $      | -                        |   |   | $ | 192.5 |   |
| Swaps                             |   |          | 639.6    |   |        |   | 75.3    |        |   |   | -                        |   |   |   | 100.5 |   |
| Options                           |   |          | 1,000.3  |   |        |   | 40.1    |        |   |   | -                        |   |   |   | (11.8 | ) |
|                              |   |          |     |   |        |   |    |        |   |   |                     |   |   |   |   |   |
| Interest rate contracts (1): |   |          |     |   |        |   |    |        |   |   |                     |   |   |   |   |   |
| Floors                            |   |          | 15,000.0 |   |        |   | 361.6   |        |   |   | -                        |   |   |   | 125.9 |   |
| Swaps                             |   |          | 4,080.0  |   |        |   | 345.7   |        |   |   | 60.5                     |   |   |   | 306.5 |   |
| Futures                           |   |          | 1,414.0  |   |        |   | -       |        |   |   | -                        |   |   |   | 33.6 |   |
| Swaptions                         |   |          | 5,924.9  |   |        |   | 95.1    |        |   |   | -                        |   |   |   | 358.9 |   |
|                              |   |          |     |   |        |   |    |        |   |   |                     |   |   |   |   |   |
| Other freestanding contracts (2): |   |          | -        |   |        |   | -       |        |   |   | -                        |   |   |   | - |   |
| Currency Contracts                |   |          | 37.5     |   |        |   | -       |        |   |   | 1.1                      |   |   |   | (.9 | ) |
| Net investment income             |   |          |     |   |        |   |    |        |   |   |                     |   |   |   | 1,105.2 |   |
|                              |   |          |     |   |        |   |    |        |   |   |                     |   |   |   |   |   |
| Embedded derivatives:             |   |          |     |   |        |   |    |        |   |   |                     |   |   |   |   |   |
| GMIB reinsurance contracts(2)     |   |          | -        |   |        |   | 4,035.6 |        |   |   | -                        |   |   |   | 1,779.8 |   |
|                              |   |          |     |   |        |   |    |        |   |   |                     |   |   |   |   |   |
| GWBL features (3)                 |   |          | -        |   |        |   | -       |        |   |   | 178.7                    |   |   |   | (123.8 | ) |
|                              |   |          |     |   |        |   |    |        |   |   |                     |   |   |   |   |   |
| Balances, June 30, 2010           |   | $             | 33,017.5 |   |        | $      | 4,954.2 |        |   | $      | 240.3                    |   |   | $ | 2,761.2 |   |

|  (1)   | Reported in Other invested assets in the consolidated balance sheets.   |
|-----------------------|-------------------------------------------------------------------------|
|  (2)        | Reported in Other assets in the consolidated balance sheets.            |
| (3)         | Reported in Future policy benefits and other policyholders liabilities. |

----

| 4)   | CLOSED BLOCK |
|----------------|--------------|

----

|                                                                    |   | June 30,      |    |   | December 31, |   |
|-------------------------------------------------------------------------|--------|---------------|---------|--------|--------------|--------|
|                                                                    |   | 2010          |    |   | 2009         |   |
|                                                                    |   | (In Millions) |    |
|                                                                    |   |          |    |   |         |   |
| CLOSED BLOCK LIABILITIES:                                               |   |          |    |   |         |   |
| Future policy benefits, policyholders’ account balances and other |   | $             | 8,334.7 |   |         | $      | 8,411.7 |   |
| Policyholder dividend obligation                                        |   |          | 164.5   |   |         |   | - |   |
| Other liabilities                                                       |   |          | 125.9   |   |         |   | 69.8 |   |
| Total Closed Block liabilities                                          |   |          | 8,625.1 |   |         |   | 8,481.5 |   |
|                                                                    |   |          |    |   |         |   |   |   |
| ASSETS DESIGNATED TO THE CLOSED BLOCK:                                  |   |          |    |   |         |   |   |   |
| Fixed maturities, available for sale, at fair value                     |   |          |    |   |         |   |   |   |
| (amortized cost of $5,562.4 and $5,575.5)                               |   |          | 5,791.1 |   |         |   | 5,631.2 |   |
| Mortgage loans on real estate                                           |   |          | 1,007.9 |   |         |   | 1,028.5 |   |
| Policy loans                                                            |   |          | 1,139.7 |   |         |   | 1,157.5 |   |
| Cash and other invested assets                                          |   |          | 124.7   |   |         |   | 68.2 |   |
| Other assets                                                            |   |          | 245.3   |   |         |   | 264.1 |   |
| Total assets designated to the Closed Block                             |   |          | 8,308.7 |   |         |   | 8,149.5 |   |
|                                                                    |   |          |    |   |         |   |   |   |
| Excess of Closed Block liabilities over assets designated to            |   |          |    |   |         |   |   |   |
| the Closed Block                                                        |   |          | 316.4   |   |         |   | 332.0 |   |
|                                                                    |   |          |    |   |         |   |   |   |
| Amounts included in accumulated other comprehensive income:             |   |          |    |   |         |   |   |   |
| Net unrealized investment gains, net of deferred income                 |   |          |    |   |         |   |   |   |
| tax expense of $26.3 and $23.4 and policyholder dividend                |   |          |    |   |         |   |   |   |
|         obligation of $164.5 and $0  |   |          | 48.9    |   |         |   |  43.6 |   |
| Maximum Future Earnings To Be Recognized From Closed Block              |   |          |    |   |         |   |   |   |
| Assets and Liabilities                                                  |   | $             | 365.3   |   |         | $      | 375.6 |   |

----

|                                        |   | Three Months Ended |   |   | Six Months Ended |   |
|---------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                        |   | June 30,           |   |   | June 30,         |   |
|                                        |   | 2010               |   |   | 2009             |   |   | 2010 |   |   | 2009 |   |
|                                        |   | (In Millions)      |   |
| REVENUES:                                   |   |               |   |   |             |   |   |   |   |   |   |   |
| Premiums and other income                   |   | $                  | 92.3   |   |             | $      | 95.9 |   |   | $ | 187.2 |   |   | $ | 195.8 |   |
| Investment income (net of investment        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| expenses of $0, $0, $0 and $0)              |   |               | 116.7  |   |             |   | 122.6 |   |   |   | 234.8 |   |   |   | 242.8 |   |
| Investment (losses) gains, net:             |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total other-than-temporary                  |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| impairment losses                           |   |               | (7.7   | )      |             |   | (2.1 | ) |   |   | (7.7 | ) |   |   | (2.1 | ) |
| Portion of loss recognized in other         |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| comprehensive income                        |   |               | .5     |   |             |   | - |   |   |   | .5 |   |   |   | - |   |
|   Net impairment losses recognized     |   |               | (7.2   | )      |             |   | (2.1 | ) |   |   | (7.2 | ) |   |   | (2.1 | ) |
| Other investment gains, net                 |   |               | -      |   |             |   | 3.9 |   |   |   | 6.2 |   |   |   | 11.3 |   |
| Total investment (losses) gains, net        |   |               | (7.2   | )      |             |   | 1.8 |   |   |   | (1.0 | ) |   |   | 9.2 |   |
| Total revenues                              |   |               | 201.8  |   |             |   | 220.3 |   |   |   | 421.0 |   |   |   | 447.8 |   |
|                                        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| BENEFITS AND OTHER DEDUCTIONS:              |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Policyholders’ benefits and dividends |   |               | 200.7  |   |             |   | 205.2 |   |   |   | 403.9 |   |   |   | 414.1 |   |
| Other operating costs and expenses          |   |               | .5     |   |             |   | .8 |   |   |   | 1.3 |   |   |   | 1.3 |   |
| Total benefits and other deductions         |   |               | 201.2  |   |             |   | 206.0 |   |   |   | 405.2 |   |   |   | 415.4 |   |
|                                        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net revenues before income taxes            |   |               | .6     |   |             |   | 14.3 |   |   |   | 15.8 |   |   |   | 32.4 |   |
| Income tax expense                          |   |               | (.2    | )      |             |   | (5.0 | ) |   |   | (5.5 | ) |   |   | (11.3 | ) |
| Net Revenues                                |   | $                  | .4     |   |             | $      | 9.3 |   |   | $ | 10.3 |   |   | $ | 21.1 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Six Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | June 30,         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 2010             |   | 2009 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | (In Millions)    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |             |   |
| Balances, beginning of year                                                                                      |             | $      | - |   |   | $ | - |   |
| Unrealized investment gains                                                                                      |             |   | 164.5 |   |   |   | - |   |
| Balances, End of Period                                                                                          |             | $      | 164.5 |   |   | $ | - |   |

----

| 5)   | DISCONTINUED OPERATIONS |
|----------------|-------------------------|

|                             |   | Three Months Ended |   |   | Six Months Ended |   |
|----------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                             |   | June 30,           |   |   | June 30,         |   |
|                             |   | 2010               |   |   | 2009             |   |   | 2010 |   |   | 2009 |   |
|                             |   | (In Millions)      |   |
|                             |   |               |   |   |             |   |   |   |   |   |   |   |
| Earnings from Discontinued       |   |               |   |   |             |   |   |   |   |   |   |   |
| Operations, Net of Income Taxes: |   |               |   |   |             |   |   |   |   |   |   |   |
| Wind-up Annuities                |   | $                  | -      |   |             | $      | (2.3 | ) |   | $ | - |   |   | $ | (3.8 | ) |
| Real estate held-for-sale        |   |               | -      |   |             |   | 5.8 |   |   |   | - |   |   |   | 12.4 |   |
| Total                            |   | $                  | -      |   |             | $      | 3.5 |   |   | $ | - |   |   | $ | 8.6 |   |

| 6)   | GMDB, GMIB, GWBL AND NO LAPSE GUARANTEE FEATURES |
|----------------|--------------------------------------------------|

| ·   | Return of Premium: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals); |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | Ratchet: the benefit is the greatest of current account value, premiums paid (adjusted for withdrawals), or the highest account value on any anniversary up to contractually specified ages (adjusted for withdrawals); |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Roll-Up: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals) accumulated at contractually specified interest rates up to specified ages; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Combo: the benefit is the greater of the ratchet benefit or the roll-up benefit which may include a five year or an annual reset; or |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Withdrawal: the withdrawal is guaranteed up to a maximum amount per year for life. |
|--------------------|------------------------------------------------------------------------------------|

----

|                       |   | GMDB          |    |   | GMIB   |   |    | Total  |   |
|----------------------------|--------|---------------|---------|--------|--------|--------|---------|--------|--------|
|                       |   | (In Millions) |    |
|                       |   |          |    |
|                       |   |          |    |   |   |   |    |   |   |
| Balance at January 1, 2010 |   | $             | 1,086.5 |   |   | $      | 1,612.9 |   |   | $ | 2,699.4 |   |
| Paid guarantee benefits    |   |          | (52.1   | )      |   |   | (10.4   | )      |   |   | (62.5 | ) |
| Other changes in reserve   |   |          | 114.6   |   |   |   | 647.2   |   |   |   | 761.8 |   |
| Balance at June 30, 2010   |   | $             | 1,149.0 |   |   | $      | 2,249.7 |   |   | $ | 3,398.7 |   |
|                       |   |          |    |   |   |   |    |   |   |   |   |   |
| Balance at January 1, 2009 |   | $             | 980.9   |   |   | $      | 1,979.9 |   |   | $ | 2,960.8 |   |
| Paid guarantee benefits    |   |          | (65.2   | )      |   |   | (19.8   | )      |   |   | (85.0 | ) |
| Other changes in reserve   |   |          | 145.1   |   |   |   | (238.7  | )      |   |   | (93.6 | ) |
| Balance at June 30, 2009   |   | $             | 1,060.8 |   |   | $      | 1,721.4 |   |   | $ | 2,782.2 |   |

|                         | Six Months Ended |   |
|------------------------------|------------------|--------|
|                         | June 30,         |   |
|                         | 2010             |   | 2009 |   |
|                         | (In Millions)    |   |
|                         |             |   |   |   |   |   |
| Balance at beginning of year |             | $      | 405.0 |   |   | $ | 327.3 |   |
| Paid guarantee benefits      |             |   | (34.3 | ) |   |   | (5.1 | ) |
| Other changes in reserve     |             |   | 79.3 |   |   |   | 47.5 |   |
| Balance at End of Period     |             | $      | 450.0 |   |   | $ | 369.7 |   |

----

|                                                                                                                                                                             |   | Return                |   |   |    |   |   |    |   |   |   |   |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                             |   | of                    |   |   |    |   |   |    |   |   |   |   |   |   |   |
|                                                                                                                                                                             |   | Premium               |   |   | Ratchet |   |   | Roll-Up |   |   | Combo  |   |   | Total  |   |
|                                                                                                                                                                             |   | (Dollars In Millions) |   |
|                                                                                                                                                                             |   |                  |   |   |    |   |   |    |   |   |   |   |   |   |   |
| GMDB:                                                                                                                                                                            |   |                  |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Account values invested in:                                                                                                                                                      |   |                  |   |   |    |   |   |    |   |   |   |   |   |   |   |
| General Account                                                                                                                                                                  |   | $                     | 11,403 |   |    | $      | 265    |    |   | $      | 149    |   |   | $      | 522    |   |   | $ | 12,339 |   |
| Separate Accounts                                                                                                                                                                |   | $                     | 24,574 |   |    | $      | 6,565  |    |   | $      | 3,814  |   |   | $      | 30,047 |   |   | $ | 65,000 |   |
| Net amount at risk, gross                                                                                                                                                        |   | $                     | 3,362  |   |    | $      | 2,033  |    |   | $      | 3,154  |   |   | $      | 13,191 |   |   | $ | 21,740 |   |
| Net amount at risk, net of                                                                                                                                                       |   |                  |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| amounts reinsured                                                                                                                                                                |   | $                     | 3,362  |   |    | $      | 1,282  |    |   | $      | 2,160  |   |   | $      | 5,526  |   |   | $ | 12,330 |   |
| Average attained age of                                                                                                                                                          |   |                  |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| contractholders                                                                                                                                                                  |   |                  | 49.8   |   |    |   | 62.5   |    |   |   | 67.4   |   |   |   | 62.9   |   |   |   | 53.6 |   |
| Percentage of contractholders                                                                                                                                                    |   |                  |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| over age 70                                                                                                                                                                      |   |                  | 7.7    | %      |    |   | 25.5   | %       |   |   | 43.1   | %      |   |   | 25.0   | % |   |   | 13.1 | % |
| Range of contractually specified                                                                                                                                                 |   |                  |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| interest rates                                                                                                                                                                   |   |                  | N/A    |   |    |   | N/A    |    |   |   | 3%-6   | %      |   |   | 3%-6.5 | % |   |   | 3%-6.5 | % |
|                                                                                                                                                                             |   |                  |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| GMIB:                                                                                                                                                                            |   |                  |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Account values invested in:                                                                                                                                                      |   |                  |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| General Account                                                                                                                                                                  |   |                  | N/A    |   |    |   | N/A    |    |   | $      | 32     |   |   | $      | 667    |   |   | $ | 699 |   |
| Separate Accounts                                                                                                                                                                |   |                  | N/A    |   |    |   | N/A    |    |   | $      | 2,547  |   |   | $      | 41,268 |   |   | $ | 43,815 |   |
| Net amount at risk, gross                                                                                                                                                        |   |                  | N/A    |   |    |   | N/A    |    |   | $      | 1,552  |   |   | $      | 3,052  |   |   | $ | 4,604 |   |
| Net amount at risk, net of                                                                                                                                                       |   |                  |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| amounts reinsured                                                                                                                                                                |   |                  | N/A    |   |    |   | N/A    |    |   | $      | 456    |   |   | $      | 827    |   |   | $ | 1,283 |   |
| Weighted average years                                                                                                                                                           |   |                  |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| remaining until annuitization                                                                                                                                                    |   |                  | N/A    |   |    |   | N/A    |    |   |   | .9     |   |   |   | 6.6    |   |   |   | 6.1 |   |
| Range of contractually specified                                                                                                                                                 |   |                  |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| interest rates                            |   |                  | N/A    |   |    |   | N/A    |    |   |   | 3%-6   | %      |   |   | 3%-6.5 | % |   |   | 3%-6.5 | % |

----

|         |   | June 30,      |   | December 31, |   |
|--------------|--------|---------------|--------|--------------|--------|
|         |   | 2010          |   | 2009         |   |
|         |   | (In Millions) |   |
|         |   |          |   |
| GMDB:        |   |          |   |         |   |   |
| Equity       |   | $             | 40,060 |         |   | $ | 41,447 |   |
| Fixed income |   |          | 4,133  |         |   |   | 3,957 |   |
| Balanced     |   |          | 19,954 |         |   |   | 20,940 |   |
| Other        |   |          | 853    |         |   |   | 2,246 |   |
| Total        |   | $             | 65,000 |         |   | $ | 68,590 |   |
|         |   |          |   |         |   |   |   |   |
| GMIB:        |   |          |   |         |   |   |   |   |
| Equity       |   | $             | 26,453 |         |   | $ | 27,837 |   |
| Fixed income |   |          | 2,604  |         |   |   | 2,514 |   |
| Balanced     |   |          | 14,301 |         |   |   | 15,351 |   |
| Other        |   |          | 457    |         |   |   | 618 |   |
| Total        |   | $             | 43,815 |         |   | $ | 46,320 |   |

----

|                       |   | Direct        |   |   | Reinsurance |   |   |   |   |
|----------------------------|--------|---------------|--------|--------|-------------|--------|--------|--------|--------|
|                       |   | Liability     |   |   | Ceded       |   |   | Net    |   |
|                       |   | (In Millions) |   |
|                       |   |          |   |   |        |   |   |   |   |
| Balance at January 1, 2010 |   | $             | 255.0  |   |        | $      | (173.6 | )      |   | $ | 81.4 |   |
| Other changes in reserves  |   |          | 72.9   |   |        |   | (25.8  | )      |   |   | 47.1 |   |
| Balance at June 30, 2010   |   | $             | 327.9  |   |        | $      | (199.4 | )      |   | $ | 128.5 |   |
|                       |   |          |   |   |        |   |   |   |   |   |   |   |
| Balance at January 1, 2009 |   | $             | 203.0  |   |        | $      | (152.6 | )      |   | $ | 50.4 |   |
| Other changes in reserves  |   |          | 19.0   |   |        |   | (6.0   | )      |   |   | 13.0 |   |
| Balance at June 30, 2009   |   | $             | 222.0  |   |        | $      | (158.6 | )      |   | $ | 63.4 |   |

| 7)   | FAIR VALUE DISCLOSURES |
|----------------|------------------------|

| Level 1 | Quoted prices for identical instruments in active markets.  Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis.                                                                   |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data.                                                |
| Level 3 | Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. |

----

|                                  |   | Level 1       |     |   | Level 2 |   |     | Level 3 |   |   | Total   |   |
|---------------------------------------|--------|---------------|----------|--------|---------|--------|----------|---------|--------|--------|---------|--------|
|                                  |   | (In Millions) |     |
| Assets                                |   |          |     |   |    |   |     |    |   |   |    |   |
| Investments:                          |   |          |     |   |    |   |     |    |   |   |    |   |
| Fixed maturities, available-for-sale: |   |          |     |   |    |   |     |    |   |   |    |   |
| Corporate                             |   | $             | -        |   |    | $      | 21,302.2 |    |   | $      | 426.5   |   |   | $ | 21,728.7 |   |
| U.S. Treasury, government             |   |          |     |   |    |   |     |    |   |   |    |   |   |   |   |   |
| and agency                            |   |          | -        |   |    |   | 1,941.0  |    |   |   | -       |   |   |   | 1,941.0 |   |
| States and political subdivisions     |   |          | -        |   |    |   | 397.2    |    |   |   | 50.3    |   |   |   | 447.5 |   |
| Foreign governments                   |   |          | -        |   |    |   | 372.1    |    |   |   | 1.0     |   |   |   | 373.1 |   |
| Commercial mortgage-backed            |   |          | -        |   |    |   | -        |    |   |   | 1,243.3 |   |   |   | 1,243.3 |   |
| Residential mortgage-backed(1)        |   |          | -        |   |    |   | 1,459.9  |    |   |   | .2      |   |   |   | 1,460.1 |   |
| Asset-backed(2)                       |   |          | -        |   |    |   | 125.8    |    |   |   | 148.3   |   |   |   | 274.1 |   |
| Redeemable preferred stock            |   |          | 224.1    |   |    |   | 1,181.8  |    |   |   | 2.5     |   |   |   | 1,408.4 |   |
| Subtotal                              |   |          | 224.1    |   |    |   | 26,780.0 |    |   |   | 1,872.1 |   |   |   | 28,876.2 |   |
| Other equity investments              |   |          | 48.2     |   |    |   | -        |    |   |   | 13.3    |   |   |   | 61.5 |   |
| Trading securities                    |   |          | 418.4    |   |    |   | 71.9     |    |   |   | .2      |   |   |   | 490.5 |   |
| Other invested assets:                |   |          |     |   |    |   |     |    |   |   |    |   |   |   |   |   |
| Short-term                            |   |          | -        |   |    |   | 70.2     |    |   |   | -       |   |   |   | 70.2 |   |
| Futures                               |   |          | -        |   |    |   | .8       |    |   |   | -       |   |   |   | .8 |   |
| Swaps                                 |   |          | -        |   |    |   | 348.1    |    |   |   | 12.4    |   |   |   | 360.5 |   |
| Options                               |   |          | -        |   |    |   | 40.1     |    |   |   | -       |   |   |   | 40.1 |   |
| Floors                                |   |          | -        |   |    |   | 361.6    |    |   |   | -       |   |   |   | 361.6 |   |
| Swaptions                             |   |          | -        |   |    |   | 95.1     |    |   |   | -       |   |   |   | 95.1 |   |
| Subtotal                              |   |          | -        |   |    |   | 915.9    |    |   |   | 12.4    |   |   |   | 928.3 |   |
| Cash equivalents                      |   |          | 2,847.6  |   |    |   | -        |    |   |   | -       |   |   |   | 2,847.6 |   |
| Segregated securities                 |   |          | -        |   |    |   | 945.3    |    |   |   | -       |   |   |   | 945.3 |   |
| GMIB reinsurance contracts            |   |          | -        |   |    |   | -        |    |   |   | 4,035.6 |   |   |   | 4,035.6 |   |
| Separate Accounts’ assets       |   |          | 77,242.9 |   |    |   | 1,869.6  |    |   |   | 205.1   |   |   |   | 79,317.6 |   |
| Total Assets                          |   | $             | 80,781.2 |   |    | $      | 30,582.7 |    |   | $      | 6,138.7 |   |   | $ | 117,502.6 |   |
|                                  |   |          |     |   |    |   |     |    |   |   |    |   |   |   |   |   |
| Liabilities                           |   |          |     |   |    |   |     |    |   |   |    |   |   |   |   |   |
| GWBL features’ liability        |   | $             | -        |   |    | $      | -        |    |   | $      | 178.7   |   |   | $ | 178.7 |   |
| Total Liabilities                     |   | $             | -        |   |    | $      | -        |    |   | $      | 178.7   |   |   | $ | 178.7 |   |

|   | (1) | Includes publicly traded agency pass-through securities and collateralized obligations. |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | (2) | Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

----

|                                  |   | Level 1       |     |   | Level 2 |   |     | Level 3 |   |   | Total   |   |
|---------------------------------------|--------|---------------|----------|--------|---------|--------|----------|---------|--------|--------|---------|--------|
|                                  |   | (In Millions) |     |
| Assets                                |   |          |     |   |    |   |     |    |   |   |    |   |
| Investments:                          |   |          |     |   |    |   |     |    |   |   |    |   |
| Fixed maturities, available-for-sale: |   |          |     |   |    |   |     |    |   |   |    |   |
| Corporate                             |   | $             | -        |   |    | $      | 19,728.5 |    |   | $      | 465.6   |   |   | $ | 20,194.1 |   |
| U.S. Treasury, government             |   |          |     |   |    |   |     |    |   |   |    |   |   |   |   |   |
| and agency                            |   |          | -        |   |    |   | 1,690.0  |    |   |   | -       |   |   |   | 1,690.0 |   |
| States and political subdivisions     |   |          | -        |   |    |   | 334.3    |    |   |   | 47.4    |   |   |   | 381.7 |   |
| Foreign governments                   |   |          | -        |   |    |   | 281.6    |    |   |   | 20.7    |   |   |   | 302.3 |   |
| Commercial mortgage-backed            |   |          | -        |   |    |   | -        |    |   |   | 1,489.8 |   |   |   | 1,489.8 |   |
| Residential mortgage-backed(1)        |   |          | -        |   |    |   | 1,650.6  |    |   |   | -       |   |   |   | 1,650.6 |   |
| Asset-backed(2)                       |   |          | -        |   |    |   | 50.6     |    |   |   | 217.1   |   |   |   | 267.7 |   |
| Redeemable preferred stock            |   |          | 190.6    |   |    |   | 1,291.0  |    |   |   | 12.4    |   |   |   | 1,494.0 |   |
| Subtotal                              |   |          | 190.6    |   |    |   | 25,026.6 |    |   |   | 2,253.0 |   |   |   | 27,470.2 |   |
| Other equity investments              |   |          | 90.3     |   |    |   | -        |    |   |   | .9      |   |   |   | 91.2 |   |
| Trading securities                    |   |          | 423.0    |   |    |   | 60.9     |    |   |   | .7      |   |   |   | 484.6 |   |
| Other invested assets                 |   |          | -        |   |    |   | (36.3    | )       |   |   | 299.6   |   |   |   | 263.3 |   |
| Cash equivalents                      |   |          | 1,366.5  |   |    |   | -        |    |   |   | -       |   |   |   | 1,366.5 |   |
| Segregated securities                 |   |          | -        |   |    |   | 985.7    |    |   |   | -       |   |   |   | 985.7 |   |
| GMIB reinsurance contracts            |   |          | -        |   |    |   | -        |    |   |   | 2,255.8 |   |   |   | 2,255.8 |   |
| Separate Accounts’ assets       |   |          | 82,102.3 |   |    |   | 1,684.5  |    |   |   | 229.7   |   |   |   | 84,016.5 |   |
| Total Assets                          |   | $             | 84,172.7 |   |    | $      | 27,721.4 |    |   | $      | 5,039.7 |   |   | $ | 116,933.8 |   |
|                                  |   |          |     |   |    |   |     |    |   |   |    |   |   |   |   |   |
| Liabilities                           |   |          |     |   |    |   |     |    |   |   |    |   |   |   |   |   |
| GWBL features’ liability        |   | $             | -        |   |    | $      | -        |    |   | $      | 54.9    |   |   | $ | 54.9 |   |
| Total Liabilities                     |   | $             | -        |   |    | $      | -        |    |   | $      | 54.9    |   |   | $ | 54.9 |   |

|   | (1) | Includes publicly traded agency pass-through securities and collateralized obligations. |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | (2) | Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                      |   |      |   |   | U.S.      |   |   |    |   |   | State and |   |   | Commer-   |   |   | Residen- |   |    |   |   |
|---------------------------|--------|-----------|--------|--------|-----------|--------|--------|---------|--------|--------|-----------|--------|--------|-----------|--------|--------|----------|--------|---------|--------|--------|
|                      |   |      |   |   | Treasury, |   |   |    |   |   | Political |   |   | cial      |   |   | tial     |   |    |   |   |
|                      |   |      |   |   | Govt and  |   |   | Foreign |   |   | Sub-      |   |   | Mortgage- |   |   | Mortgage |   |    | Asset- |   |
|                      |   | Corporate |   |   | Agency    |   |   | Govts   |   |   | divisions |   |   | backed    |   |   | backed   |   |    | backed |   |
| Discrete second quarter:  |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |
| Balance, April 1, 2010    |   | $         | 421.3  |   |      | $      | -      |    |   | $      | 1.0       |   |   | $         | 47.5   |   |     | $      | 1,419.6 |   |   | $ | .2 |   |   | $ | 188.2 |   |
| Total gains (losses),     |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| realized and unrealized,  |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| included in:              |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| Earnings as:              |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| Net investment income     |   |      | .7     |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | .7      |   |   |   | - |   |   |   | - |   |
| Investment losses, net    |   |      | .2     |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | (38.4   | )      |   |   | - |   |   |   | (.4 | ) |
| Increase in the           |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| fair value of the         |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| reinsurance contracts     |   |      | -      |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | -       |   |   |   | - |   |   |   | - |   |
| Subtotal                  |   |      | .9     |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | (37.7   | )      |   |   | - |   |   |   | (.4 | ) |
| Other comprehensive       |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| loss                      |   |      | 5.9    |   |      |   | -      |    |   |   | -         |   |   |      | 3.0    |   |     |   | (11.3   | )      |   |   | - |   |   |   | 2.6 |   |
| Purchases/issuances       |   |      | 85.1   |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | -       |   |   |   | - |   |   |   | - |   |
| Sales/settlements         |   |      | (13.0  | )      |      |   | -      |    |   |   | -         |   |   |      | (.2    | )      |     |   | (127.3  | )      |   |   | - |   |   |   | (8.5 | ) |
| Transfers into/out of     |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| Level 3 (2)               |   |      | (73.7  | )      |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | -       |   |   |   | - |   |   |   | (33.6 | ) |
| Balance, June 30, 2010    |   | $         | 426.5  |   |      | $      | -      |    |   | $      | 1.0       |   |   | $         | 50.3   |   |     | $      | 1,243.3 |   |   | $ | .2 |   |   | $ | 148.3 |   |
|                      |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| First six months of 2010: |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| Balance, January 1, 2010  |   | $         | 465.6  |   |      | $      | -      |    |   | $      | 20.7      |   |   | $         | 47.4   |   |     | $      | 1,489.8 |   |   | $ | - |   |   | $ | 217.1 |   |
| Total gains (losses),     |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| realized and unrealized,  |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| included in:              |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| Earnings as:              |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| Net investment income     |   |      | 1.6    |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | 1.4     |   |   |   | - |   |   |   | .1 |   |
| Investment losses, net    |   |      | .2     |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | (68.3   | )      |   |   | - |   |   |   | .1 |   |
| Increase in the           |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| fair value of the         |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| reinsurance contracts     |   |      | -      |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | -       |   |   |   | - |   |   |   | - |   |
| Subtotal                  |   |      | 1.8    |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | (66.9   | )      |   |   | - |   |   |   | .2 |   |
| Other comprehensive       |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| loss                      |   |      | 15.0   |   |      |   | -      |    |   |   | -         |   |   |      | 3.3    |   |     |   | (52.3   | )      |   |   | - |   |   |   | 4.9 |   |
| Purchases/issuances       |   |      | 98.4   |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | -       |   |   |   | - |   |   |   | - |   |
| Sales/settlements         |   |      | (39.6  | )      |      |   | -      |    |   |   | -         |   |   |      | (.4    | )      |     |   | (127.3  | )      |   |   | - |   |   |   | (16.6 | ) |
| Transfers into/out of     |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| Level 3 (2)               |   |      | (114.7 | )      |      |   | -      |    |   |   | (19.7     | )      |   |      | -      |   |     |   | -       |   |   |   | .2 |   |   |   | (57.3 | ) |
| Balance, June 30, 2010    |   | $         | 426.5  |   |      | $      | -      |    |   | $      | 1.0       |   |   | $         | 50.3   |   |     | $      | 1,243.3 |   |   | $ | .2 |   |   | $ | 148.3 |   |

| (1)   | Includes Trading securities’ Level 3 amount. |
|-----------------|----------------------------------------------------|

| (2)   | Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. |
|-----------------|------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                |   | Redeem-   |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|----------------|--------|--------|----------|--------|--------|-------------|--------|--------|----------|---------|--------|-----------|---------|
|                                                                                                                                                                                                                |   | able      |   |   | Other          |   |   | Other    |   |   | GMIB        |   |   | Separate |    |   | GWBL      |    |
|                                                                                                                                                                                                                |   | Preferred |   |   | Equity         |   |   | Invested |   |   | Reinsurance |   |   | Accounts |    |   | Features  |    |
|                                                                                                                                                                                                                |   | Stock     |   |   | Investments(1) |   |   | Assets   |   |   | Asset       |   |   | Assets   |    |   | Liability |    |
| Discrete second quarter:                                                                                                                                                                                            |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |
| Balance, April 1, 2010                                                                                                                                                                                              |   | $         | 12.4   |   |           | $      | 1.3    |     |   | $      | (6.5        | )      |   | $        | 2,208.9 |   |      | $       | 206.9 |   |   | $ | 40.5 |   |
| Total gains (losses),                                                                                                                                                                                               |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| realized and unrealized,                                                                                                                                                                                            |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| included in:                                                                                                                                                                                                        |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| Earnings as:                                                                                                                                                                                                        |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| Net investment income                                                                                                                                                                                               |   |      | -      |   |           |   | (.1    | )   |   |   | 18.9        |   |   |     | -       |   |      |    | - |   |   |   | - |   |
| Investment losses, net                                                                                                                                                                                              |   |      | 3.9    |   |           |   | -      |     |   |   | -           |   |   |     | -       |   |      |    | 1.7 |   |   |   | - |   |
| Increase in the                                                                                                                                                                                                     |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| fair value of the                                                                                                                                                                                                   |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| reinsurance contracts                                                                                                                                                                                               |   |      | -      |   |           |   | -      |     |   |   | -           |   |   |     | 1,776.0 |   |      |    | - |   |   |   | - |   |
| Policyholders’ benefits                                                                                                                                                                                       |   |      | -      |   |           |   | -      |     |   |   | -           |   |   |     | -       |   |      |    | - |   |   |   | 131.5 |   |
| Subtotal                                                                                                                                                                                                            |   |      | 3.9    |   |           |   | (.1    | )        |   |   | 18.9        |   |   |     | 1,776.0 |   |      |    | 1.7 |   |   |   | 131.5 |   |
| Other comprehensive                                                                                                                                                                                                 |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| loss                                                                                                                                                                                                                |   |      | -      |   |           |   | -      |     |   |   | -           |   |   |     | -       |   |      |    | - |   |   |   | - |   |
| Purchases/issuances                                 |   |      | -      |   |           |   | -      |     |   |   | -           |   |   |     | 50.7    |   |      |    | - |   |   |   | 6.7 |   |
| Sales/settlements, net                                                                                                                                                                                              |   |      | (13.8  | )      |           |   | (.6    | )        |   |   | -           |   |   |     | -       |   |      |    | (3.5 | ) |   |   | - |   |
| Transfers into/out of                                                                                                                                                                                               |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| Level 3 (2)                                                                                                                                                                                                         |   |      | -      |   |           |   | 12.9   |     |   |   | -           |   |   |     | -       |   |      |    | - |   |   |   | - |   |
| Balance, June 30, 2010                                                                                                                                                                                              |   | $         | 2.5    |   |           | $      | 13.5   |     |   | $      | 12.4        |   |   | $        | 4,035.6 |   |      | $  | 205.1 |   |   | $  | 178.7 |   |
|                                                                                                                                                                                                                |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| First six months of 2010:                                                                                                                                                                                           |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| Balance, January 1, 2010                                                                                                                                                                                            |   | $         | 12.4   |   |           | $      | 1.7    |     |   | $      | 299.6       |   |   | $        | 2,255.8 |   |      | $       | 229.7 |   |   | $ | 54.9 |   |
| Total gains (losses),                                                                                                                                                                                               |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| realized and unrealized,                                                                                                                                                                                            |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| included in:                                                                                                                                                                                                        |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| Earnings as:                                                                                                                                                                                                        |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| Net investment income                                                                                                                                                                                               |   |      | -      |   |           |   | (.5    | )   |   |   | 12.4        |   |   |     | -       |   |      |    | - |   |   |   | - |   |
| Investment losses, net                                                                                                                                                                                              |   |      | 3.9    |   |           |   | -      |     |   |   | -           |   |   |     | -       |   |      |    | (22.3 | ) |   |   | - |   |
| Increase in the                                                                                                                                                                                                     |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| fair value of the                                                                                                                                                                                                   |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| reinsurance contracts                                                                                                                                                                                               |   |      | -      |   |           |   | -      |     |   |   | -           |   |   |     | 1,678.7 |   |      |    | - |   |   |   | - |   |
| Policyholders’ benefits                                                                                                                                                                                       |   |      | -      |   |           |   | -      |     |   |   | -           |   |   |     | -       |   |      |    | - |   |   |   | 114.8 |   |
| Subtotal                                                                                                                                                                                                            |   |      | 3.9    |   |           |   | (.5    | )   |   |   |        |   |   |     | 1,678.7 |   |      |    | (22.3 | ) |   |   | 114.8 |   |
| Other comprehensive                                                                                                                                                                                                 |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| loss                                                                                                                                                                                                                |   |      | -      |   |           |   | -      |     |   |   | -           |   |   |     | -       |   |      |    | - |   |   |   | - |   |
| Purchases/issuances                                                                                                                                                                                                 |   |      | -      |   |           |   | -      |     |   |   | -           |   |   |     | 101.1   |   |      |    | 1.4 |   |   |   | 9.0 |   |
| Sales/settlements, net                                                                                                                                                                                              |   |      | (13.8  | )      |           |   | (.6    | )        |   |   | -           |   |   |     | -       |   |      |    | (4.6 | ) |   |   | - |   |
| Transfers into/out of                                                                                                                                                                                               |   |      |   |   |           |   |   |     |   |   |        |   |   |     |    |   |      |    |   |   |   |   |   |   |
| Level 3 (2)                                                                                                                                                                                                         |   |      | -      |   |           |   | 12.9   |     |   |   | (299.6      | )      |   |     | -       |   |      |    | .9 |   |   |   | - |   |
| Balance, June 30, 2010                                                                                                                                                                                              |   | $         | 2.5    |   |           | $      | 13.5   |     |   | $      | 12.4        |   |   | $        | 4,035.6 |   |      | $       | 205.1 |   |   | $ | 178.7 |   |

| (1)   | Includes Trading securities’ Level 3 amount. |
|-----------------|----------------------------------------------------|

| (2)   | Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. |
|-----------------|------------------------------------------------------------------------------------------------|

----

|                      |   |      |   |   | U.S.      |   |   |    |   |   | State and |   |   | Commer-   |   |   | Residen- |   |    |   |   |
|---------------------------|--------|-----------|--------|--------|-----------|--------|--------|---------|--------|--------|-----------|--------|--------|-----------|--------|--------|----------|--------|---------|--------|--------|
|                      |   |      |   |   | Treasury, |   |   |    |   |   | Political |   |   | cial      |   |   | tial     |   |    |   |   |
|                      |   |      |   |   | Govt and  |   |   | Foreign |   |   | Sub-      |   |   | Mortgage- |   |   | Mortgage |   |    | Asset- |   |
|                      |   | Corporate |   |   | Agency    |   |   | Govts   |   |   | divisions |   |   | backed    |   |   | backed   |   |    | backed |   |
| Discrete second quarter:  |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |
| Balance, April 1, 2009    |   | $         | 425.0  |   |      | $      | -      |    |   | $      | 17.7      |   |   | $         | 50.0   |   |     | $      | 1,457.5 |   |   | $ | 7.2 |   |   | $ | 278.6 |   |
| Total gains (losses),     |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| realized and unrealized,  |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| included in:              |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| Loss as:                  |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| Net investment income     |   |      | .1     |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | .8      |   |   |   | - |   |   |   | (.3 | ) |
| Investment losses, net    |   |      | 1.8    |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | -       |   |   |   | - |   |   |   | (9.8 | ) |
| Decrease in the           |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| fair value of the         |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| reinsurance contracts     |   |      | -      |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | -       |   |   |   | - |   |   |   | - |   |
| Subtotal                  |   |      | 1.9    |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | .8      |   |   |   | - |   |   |   | (10.1 | ) |
| Other comprehensive       |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| loss                      |   |      | 14.6   |   |      |   | -      |    |   |   | 1.6       |   |   |      | (1.9   | )      |     |   | 164.5   |   |   |   | (.5 | ) |   |   | 4.4 |   |
| Purchases/issuances and   |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| sales/settlements, net    |   |      | (17.8  | )      |      |   | -      |    |   |   | -         |   |   |      | (.2    | )      |     |   | (12.4   | )      |   |   | - |   |   |   | (18.0 | ) |
| Transfers into/out of     |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| Level 3 (2)               |   |      | (35.0  | )      |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | -       |   |   |   | - |   |   |   | (31.6 | ) |
| Balance, June 30, 2009    |   | $         | 388.7  |   |      | $      | -      |    |   | $      | 19.3      |   |   | $         | 47.9   |   |     | $      | 1,610.4 |   |   | $ | 6.7 |   |   | $ | 223.3 |   |
|                      |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| First six months of 2009: |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| Balance, January 1, 2009  |   | $         | 416.7  |   |      | $      | -      |    |   | $      | 64.0      |   |   | $         | 55.4   |   |     | $      | 1,567.9 |   |   | $ | 7.4 |   |   | $ | 310.4 |   |
| Total gains (losses),     |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| realized and unrealized,  |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| included in:              |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| Loss as:                  |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| Net investment income     |   |      | .6     |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | 1.5     |   |   |   | - |   |   |   | (.7 | ) |
| Investment gains, net     |   |      | 1.8    |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | -       |   |   |   | - |   |   |   | (14.5 | ) |
| Decrease in the           |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| fair value of the         |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| reinsurance contracts     |   |      | -      |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | -       |   |   |   | - |   |   |   | - |   |
| Subtotal                  |   |      | 2.4    |   |      |   | -      |    |   |   | -         |   |   |      | -      |   |     |   | 1.5     |   |   |   | - |   |   |   | (15.2 | ) |
| Other comprehensive       |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| loss                      |   |      | 9.9    |   |      |   | -      |    |   |   | 1.1       |   |   |      | (9.0   | )      |     |   | 57.5    |   |   |   | (.5 | ) |   |   | (2.4 | ) |
| Purchases/issuances and   |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| sales/settlements, net    |   |      | (14.6  | )      |      |   | -      |    |   |   | .8        |   |   |      | 1.5    |   |     |   | (16.5   | )      |   |   | (.2 | ) |   |   | (37.3 | ) |
| Transfers into/out of     |   |      |   |   |      |   |   |    |   |   |      |   |   |      |   |   |     |   |    |   |   |   |   |   |   |   |   |   |
| Level 3 (2)               |   |      | (25.7  | )      |      |   | -      |    |   |   | (46.6     | )      |   |      | -      |   |     |   | -       |   |   |   | - |   |   |   | (32.2 | ) |
| Balance, June 30, 2009    |   | $         | 388.7  |   |      | $      | -      |    |   | $      | 19.3      |   |   | $         | 47.9   |   |     | $      | 1,610.4 |   |   | $ | 6.7 |   |   | $ | 223.3 |   |

| (1)   | Includes Trading securities’ Level 3 amount. |
|-----------------|----------------------------------------------------|

| (2)   | Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. |
|-----------------|------------------------------------------------------------------------------------------------|

----

|                          |   | Redeem-   |   |   |           |   |   |     |   |   |        |   |     |   |      |   |
|-------------------------------|--------|-----------|--------|--------|----------------|--------|--------|----------|--------|--------|-------------|--------|----------|--------|-----------|--------|
|                          |   | able      |   |   | Other          |   |   | Other    |   |   | GMIB        |   | Separate |   | GWBL      |   |
|                          |   | Preferred |   |   | Equity         |   |   | Invested |   |   | Reinsurance |   | Accounts |   | Features  |   |
|                          |   | Stock     |   |   | Investments(1) |   |   | Assets   |   |   | Asset       |   | Assets   |   | Liability |   |
| Discrete second quarter:      |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |
| Balance, April 1, 2009        |   | $         | 2.4    |   |           | $      | 2.0    |     |   | $      | 433.1       |   |     | $      | 3,883.9   |   |   | $ | 300.1 |   |   | $ | 260.1 |   |
| Total gains (losses),         |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| realized and unrealized,      |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| included in:                  |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| Loss as:                      |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| Net investment income         |   |      | -      |   |           |   | -      |     |   |   | (20.9       | )      |     |   | -         |   |   |   | (36.7 | ) |   |   | - |   |
| Investment losses, net        |   |      | -      |   |           |   | -      |     |   |   | -           |   |     |   | -         |   |   |   | - |   |   |   | - |   |
| Decrease in the               |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| fair value of the             |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| reinsurance contracts         |   |      | -      |   |           |   | -      |     |   |   | -           |   |     |   | (1,251.4  | )      |   |   | - |   |   |   | - |   |
| Policyholders’ benefits |   |      | -      |   |           |   | -      |     |   |   | -           |   |     |   | -         |   |   |   | - |   |   |   | (139.7 | ) |
| Subtotal                      |   |      | -      |   |           |   | -      |     |   |   | (20.9       | )      |     |   | (1,251.4  | )      |   |   | (36.7 | ) |   |   | (139.7 | ) |
| Other comprehensive           |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| loss                          |   |      | -      |   |           |   | -      |     |   |   | -           |   |     |   | -         |   |   |   | - |   |   |   | - |   |
| Purchases/issuances and       |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| sales/settlements, net        |   |      | -      |   |           |   | (.8    | )        |   |   | 24.4        |   |     |   | 53.3      |   |   |   | (1.6 | ) |   |   | 3.0 |   |
| Transfers into/out of         |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| Level 3 (2)                   |   |      | -      |   |           |   | (.2    | )        |   |   | -           |   |     |   | -         |   |   |   | - |   |   |   | - |   |
| Balance, June 30, 2009        |   | $         | 2.4    |   |           | $      | 1.0    |     |   | $      | 436.6       |   |     | $      | 2,685.8   |   |   | $ | 261.8 |   |   | $ | 123.4 |   |
|                          |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| First six months of 2009:     |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| Balance, January 1, 2009      |   | $         | 2.4    |   |           | $      | 2.1    |     |   | $      | 547.0       |   |     | $      | 4,821.6   |   |   | $ | 334.3 |   |   | $ | 272.6 |   |
| Total gains (losses),         |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| realized and unrealized,      |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| included in:                  |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| Loss as:                      |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| Net investment income         |   |      | -      |   |           |   | -      |     |   |   | (159.5      | )      |     |   | -         |   |   |   | (69.0 | ) |   |   | - |   |
| Investment gains, net         |   |      | -      |   |           |   | -      |     |   |   | -           |   |     |   | -         |   |   |   | - |   |   |   | - |   |
| Decrease in the               |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| fair value of the             |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| reinsurance contracts         |   |      | -      |   |           |   | -      |     |   |   | -           |   |     |   | (2,233.9  | )      |   |   | - |   |   |   | - |   |
| Policyholders’ benefits |   |      | -      |   |           |   | -      |     |   |   | -           |   |     |   | -         |   |   |   | - |   |   |   | (154.1 | ) |
| Subtotal                      |   |      | -      |   |           |   | -      |     |   |   | (159.5      | )      |     |   | (2,233.9  | )      |   |   | (69.0 | ) |   |   | (154.1 | ) |
| Other comprehensive           |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| loss                          |   |      | -      |   |           |   | (.2    | )        |   |   | -           |   |     |   | -         |   |   |   | - |   |   |   | - |   |
| Purchases/issuances and       |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| sales/settlements, net        |   |      | -      |   |           |   | (.9    | )        |   |   | 49.1        |   |     |   | 98.1      |   |   |   | (4.4 | ) |   |   | 4.9 |   |
| Transfers into/out of         |   |      |   |   |           |   |   |     |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |
| Level 3 (2)                   |   |      | -      |   |           |   | -      |     |   |   | -           |   |     |   | -         |   |   |   | .9 |   |   |   | - |   |
| Balance, June 30, 2009        |   | $         | 2.4    |   |           | $      | 1.0    |     |   | $      | 436.6       |   |     | $      | 2,685.8   |   |   | $ | 261.8 |   |   | $ | 123.4 |   |

| (1)   | Includes Trading securities’ Level 3 amount. |
|-----------------|----------------------------------------------------|

| (2)   | Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. |
|-----------------|------------------------------------------------------------------------------------------------|

----

|                            |   | Earnings      |   |    |       |   |   |          |   |
|---------------------------------|--------|---------------|--------|---------|------------|--------|--------|---------------|--------|
|                            |   |          |   |    |       |   |   | Increase in   |   |   |   |   |   |   |   |
|                            |   | Net           |   |    | Investment |   |   | Fair Value of |   |   |   |   |   | Policy- |   |
|                            |   | Investment    |   |    | Gains,     |   |   | Reinsurance   |   |   |   |   |   | holders |   |
|                            |   | Income        |   |    | Net        |   |   | Contracts     |   |   | OCI |   |   | Benefits |   |
|                            |   | (In Millions) |   |
| Level 3 Instruments             |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |
| Second Quarter 2010             |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |
| Still Held at June 30, 2010:    |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |
| Change in unrealized gains      |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |
| or losses:                      |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |
| Fixed maturities,               |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |
| available-for-sale:             |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |
| Corporate                       |   | $             | -      |    |       | $      | -      |          |   | $ | - |   |   | $ | 5.9 |   |   | $ | - |   |
| U.S. Treasury, government       |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| and agency                      |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| State and political             |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| subdivisions                    |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | 3.0 |   |   |   | - |   |
| Foreign governments             |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial                      |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                 |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | (11.3 | ) |   |   | - |   |
| Residential                     |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                 |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Asset-backed                    |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | 2.6 |   |   |   | - |   |
| Redeemable preferred stock      |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Subtotal                        |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | .2 |   |   |   | - |   |
| Equity securities,              |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| available-for-sale              |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Other equity investments        |   |          | (.1    | )  |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Other invested assets           |   |          | 18.9   |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Cash equivalents                |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Segregated securities           |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| GMIB reinsurance contracts      |   |          | -      |    |       |   | -      |          |   |   | 1,826.7 |   |   |   | - |   |   |   | - |   |
| Separate Accounts’ assets |   |          | -      |    |       |   | 1.3    |          |   |   | - |   |   |   | - |   |   |   | - |   |
| GWBL features’ liability  |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | (138.2 | ) |
| Total                           |   | $             | 18.8   |    |       | $      | 1.3    |          |   | $ | 1,826.7 |   |   | $ | .2 |   |   | $ | (138.2 | ) |

----

|                            |   | Earnings      |   |    |       |   |   |          |   |
|---------------------------------|--------|---------------|--------|---------|------------|--------|--------|---------------|--------|
|                            |   |          |   |    |       |   |   | Increase in   |   |   |   |   |   |   |   |
|                            |   | Net           |   |    | Investment |   |   | Fair Value of |   |   |   |   |   | Policy- |   |
|                            |   | Investment    |   |    | Losses,    |   |   | Reinsurance   |   |   |   |   |   | holders |   |
|                            |   | Income        |   |    | Net        |   |   | Contracts     |   |   | OCI |   |   | Benefits |   |
|                            |   | (In Millions) |   |
| Level 3 Instruments             |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |
| First Six Months of 2010        |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |
| Still Held at June 30, 2010:    |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |
| Change in unrealized gains      |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |
| or losses:                      |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |
| Fixed maturities,               |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |
| available-for-sale:             |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |
| Corporate                       |   | $             | -      |    |       | $      | -      |          |   | $ | - |   |   | $ | 15.2 |   |   | $ | - |   |
| U.S. Treasury, government       |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| and agency                      |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| State and political             |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| subdivisions                    |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | 3.3 |   |   |   | - |   |
| Foreign governments             |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial                      |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                 |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | (54.1 | ) |   |   | - |   |
| Residential                     |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                 |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Asset-backed                    |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | 4.9 |   |   |   | - |   |
| Redeemable preferred stock      |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Subtotal                        |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | (30.7 | ) |   |   | - |   |
| Equity securities,              |   |          |   |    |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| available-for-sale              |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Other equity investments        |   |          | (.5    | )  |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Other invested assets           |   |          | 12.4   |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Cash equivalents                |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Segregated securities           |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| GMIB reinsurance contracts      |   |          | -      |    |       |   | -      |          |   |   | 1,779.8 |   |   |   | - |   |   |   | - |   |
| Separate Accounts’ assets |   |          | -      |    |       |   | (22.8  | )             |   |   | - |   |   |   | - |   |   |   | - |   |
| GWBL features’ liability  |   |          | -      |    |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | (123.8 | ) |
| Total                           |   | $             | 11.9   |    |       | $      | (22.8  | )             |   | $ | 1,779.8 |   |   | $ | (30.7 | ) |   | $ | (123.8 | ) |

----

|                            |   | Earnings      |   |   |       |   |   |          |   |
|---------------------------------|--------|---------------|--------|--------|------------|--------|--------|---------------|--------|
|                            |   |          |   |   | Investment |   |   | Decrease in   |   |   |   |   |   |   |   |
|                            |   | Net           |   |   | Gains      |   |   | Fair Value of |   |   |   |   |   | Policy- |   |
|                            |   | Investment    |   |   | (Losses),  |   |   | Reinsurance   |   |   |   |   |   | holders |   |
|                            |   | Income        |   |   | Net        |   |   | Contracts     |   |   | OCI |   |   | Benefits |   |
|                            |   | (In Millions) |   |
| Level 3 Instruments             |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |
| Second Quarter 2009             |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |
| Still Held at June 30, 2009:    |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |
| Change in unrealized gains      |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |
| or losses:                      |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |
| Fixed maturities,               |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |
| available-for-sale:             |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |
| Corporate                       |   | $             | -      |   |       | $      | -      |          |   | $ | - |   |   | $ | 6.5 |   |   | $ | - |   |
| U.S. Treasury, government       |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| and agency                      |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| State and political             |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| subdivisions                    |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | (1.9 | ) |   |   | - |   |
| Foreign governments             |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | 1.6 |   |   |   | - |   |
| Commercial                      |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                 |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | 156.5 |   |   |   | - |   |
| Residential                     |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                 |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | (.5 | ) |   |   | - |   |
| Asset-backed                    |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | (8.5 | ) |   |   | - |   |
| Redeemable preferred stock      |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Subtotal                        |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | 153.7 |   |   |   | - |   |
| Equity securities,              |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| available-for-sale              |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Other equity investments        |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | (.4 | ) |   |   | - |   |
| Other invested assets           |   |          | (110.4 | )      |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Cash equivalents                |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Segregated securities           |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| GMIB reinsurance contracts      |   |          | -      |   |       |   | -      |          |   |   | (1,251.4 | ) |   |   | - |   |   |   | - |   |
| Separate Accounts’ assets |   |          | (36.7  | )      |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| GWBL features’ liability  |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | (139.7 | ) |
| Total                           |   | $             | (147.1 | )      |       | $      | -      |          |   | $ | (1,251.4 | ) |   | $ | 153.3 |   |   | $ | (139.7 | ) |

----

|                            |   | Earnings      |   |   |       |   |   |          |   |
|---------------------------------|--------|---------------|--------|--------|------------|--------|--------|---------------|--------|
|                            |   |          |   |   | Investment |   |   | Decrease in   |   |   | Other |   |   |   |   |
|                            |   | Net           |   |   | Gains      |   |   | Fair Value of |   |   | Compre- |   |   | Policy- |   |
|                            |   | Investment    |   |   | (Losses),  |   |   | Reinsurance   |   |   | hensive |   |   | holders |   |
|                            |   | Income        |   |   | Net        |   |   | Contracts     |   |   | Income |   |   | Benefits |   |
|                            |   | (In Millions) |   |
| Level 3 Instruments             |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |
| First Six Months of 2009        |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |
| Still Held at June 30, 2009:    |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |
| Change in unrealized gains      |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |
| or losses:                      |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |
| Fixed maturities,               |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |
| available for sale:             |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |
| Corporate                       |   | $             | -      |   |       | $      | -      |          |   | $ | - |   |   | $ | .9 |   |   | $ | - |   |
| U.S. Treasury, government       |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| and agency                      |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| State and political             |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| subdivisions                    |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | (8.9 | ) |   |   | - |   |
| Foreign governments             |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | 1.1 |   |   |   | - |   |
| Commercial                      |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                 |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | 49.5 |   |   |   | - |   |
| Residential                     |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                 |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | (.5 | ) |   |   | - |   |
| Asset-backed                    |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | (15.3 | ) |   |   | - |   |
| Redeemable preferred stock      |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Subtotal                        |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | 26.8 |   |   |   | - |   |
| Equity securities,              |   |          |   |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| available for sale              |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Other equity investments        |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | (.1 | ) |   |   | - |   |
| Other invested assets           |   |          | (110.4 | )      |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Cash equivalents                |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| Segregated securities           |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| GMIB reinsurance contracts      |   |          | -      |   |       |   | -      |          |   |   | (2,233.9 | ) |   |   | - |   |   |   | - |   |
| Separate Accounts’ assets |   |          | (69.0  | )      |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |
| GWBL features’ liability  |   |          | -      |   |       |   | -      |          |   |   | - |   |   |   | - |   |   |   | (154.1 | ) |
| Total                           |   | $             | (179.4 | )      |       | $      | -      |          |   | $ | (2,233.9 | ) |   | $ | 26.7 |   |   | $ | (154.1 | ) |

----

|                                |   | June 30, 2010 |    |   | December 31, 2009 |   |
|-------------------------------------|--------|---------------|---------|--------|-------------------|--------|
|                                |   | Carrying      |    |   | Fair              |   |   | Carrying |   |   | Fair |   |
|                                |   | Value         |    |   | Value             |   |   | Value |   |   | Value |   |
|                                |   | (In Millions) |    |
|                                |   |          |    |
| Consolidated:                       |   |          |    |   |              |   |   |   |   |   |   |   |
| Mortgage loans on real estate       |   | $             | 3,560.3 |   |              | $      | 3,654.3 |   |   | $ | 3,554.8 |   |   | $ | 3,547.4 |   |
| Other limited partnership interests |   |          | 1,360.9 |   |              |   | 1,360.9 |   |   |   | 1,308.4 |   |   |   | 1,308.4 |   |
| Policyholders liabilities:          |   |          |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Investment contracts                |   |          | 2,690.9 |   |              |   | 2,798.5 |   |   |   | 2,721.0 |   |   |   | 2,729.4 |   |
| Guaranteed interest contracts       |   |          | 5.0     |   |              |   | 5.3 |   |   |   | - |   |   |   | - |   |
| Loans to affiliates                 |   |          | 1,046.6 |   |              |   | 1,079.0 |   |   |   | 1,048.3 |   |   |   | 1,077.2 |   |
| Long-term debt                      |   |          | 199.9   |   |              |   | 227.0 |   |   |   | 199.9 |   |   |   | 226.0 |   |
|                                |   |          |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Closed Block:                       |   |          |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage loans on real estate       |   | $             | 1,007.9 |   |              | $      | 1,035.4 |   |   | $ | 1,028.5 |   |   | $ | 1,021.2 |   |
| Other equity investments            |   |          | 1.4     |   |              |   | 1.4 |   |   |   | 1.5 |   |   |   | 1.5 |   |
| SCNILC liability                    |   |          | 7.0     |   |              |   | 7.0 |   |   |   | 7.6 |   |   |   | 7.6 |   |

| 8)   | EMPLOYEE BENEFIT PLANS |
|----------------|------------------------|

----

|                         |   | Three Months Ended |   |   | Six Months Ended |   |
|------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                         |   | June 30,           |   |   | June 30,         |   |
|                         |   | 2010               |   |   | 2009             |   |   | 2010 |   |   | 2009 |   |
|                         |   | (In Millions)      |   |
|                         |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Service cost                 |   | $                  | 10.9   |   |             | $      | 10.4 |   |   | $ | 21.8 |   |   | $ | 20.7 |   |
| Interest cost                |   |               | 32.3   |   |             |   | 33.9 |   |   |   | 64.5 |   |   |   | 67.9 |   |
| Expected return on assets    |   |               | (28.7  | )      |             |   | (32.1 | ) |   |   | (57.4 | ) |   |   | (64.2 | ) |
| Net amortization             |   |               | 31.1   |   |             |   | 23.3 |   |   |   | 62.2 |   |   |   | 46.6 |   |
| Net Periodic Pension Expense |   | $                  | 45.6   |   |             | $      | 35.5 |   |   | $ | 91.1 |   |   | $ | 71.0 |   |

| 9)   | SHARE-BASED COMPENSATION PROGRAMS |
|----------------|-----------------------------------|

----

| 10)   | INCOME TAXES |
|-----------------|--------------|

| 11)   | LITIGATION |
|-----------------|------------|

----

| 12)   | BUSINESS SEGMENT INFORMATION |
|-----------------|------------------------------|

|                      | Three Months Ended |   | Six Months Ended |   |
|---------------------------|--------------------|--------|------------------|--------|
|                      | June 30,           |   | June 30,         |   |
|                      | 2010               |   | 2009             |   | 2010 |   | 2009 |   |
|                      | (In Millions)      |   |
|                      |               |   |
|                      |               |   |             |   |   |   |   |   |   |   |   |   |
| Segment revenues:         |               |   |             |   |   |   |   |   |   |   |   |   |
| Insurance                 |               | $      | 4,703.1          |   |   | $ | (1,753.4 | ) |   | $ | 6,112.2 |   |   | $ | (1,031.0 | ) |
| Investment Management (1) |               |   | 690.4            |   |   |   | 727.8 |   |   |   | 1,420.1 |   |   |   | 1,331.8 |   |
| Consolidation/elimination |               |   | (6.7             | )      |   |   | (8.2 | ) |   |   | (12.4 | ) |   |   | (14.3 | ) |
| Total Revenues            |               | $      | 5,386.8          |   |   | $ | (1,033.8 | ) |   | $ | 7,519.9 |   |   | $ | 286.5 |   |

| (1)   | Net of interest expense incurred on securities borrowed. |
|-----------------|----------------------------------------------------------|

| Segment earnings (loss) from continuing |   |   |    |   |   |   |     |   |   |   |    |   |
|-----------------------------------------|--------|--------|---------|--------|--------|--------|----------|--------|--------|--------|---------|--------|
| operations before income taxes:         |   |   |    |   |   |   |     |   |   |   |    |   |
| Insurance                               |   | $      | 2,380.9 |   |   | $      | (2,193.0 | )      |   | $      | 2,695.2 |   |   | $ | (2,731.5 | ) |
| Investment Management                   |   |   | 92.1    |   |   |   | 129.0    |   |   |   | 219.7   |   |   |   | 158.5 |   |
| Consolidation/elimination               |   |   | 1.0     |   |   |   | .6       |   |   |   | 3.0     |   |   |   | .6 |   |
| Total Earnings (Loss) from Continuing   |   |   |    |   |   |   |     |   |   |   |    |   |   |   |   |   |
| Operations before Income Taxes          |   | $      | 2,474.0 |   |   | $      | (2,063.4 | )      |   | $      | 2,917.9 |   |   | $ | (2,572.4 | ) |

----

|                      |   | June 30,      |      |   | December 31, |   |
|---------------------------|--------|---------------|-----------|--------|--------------|--------|
|                      |   | 2010          |      |   | 2009         |   |
|                      |   | (In Millions) |      |
|                      |   |          |      |   |         |   |
| Segment assets:           |   |          |      |   |         |   |
| Insurance                 |   | $             | 139,502.6 |   |         | $      | 139,202.3 |   |
| Investment Management     |   |          | 10,637.9  |   |         |   | 10,770.7 |   |
| Consolidation/elimination |   |          | (34.3     | )      |         |   | (68.6 | ) |
| Total Assets              |   | $             | 150,106.2 |   |         | $      | 149,904.4 |   |

| 13)   | RELATED PARTY TRANSACTIONS |
|-----------------|----------------------------|

----

| 14)   | COMPREHENSIVE INCOME (LOSS) |
|-----------------|-----------------------------|

|                                                      |   | Three Months Ended |    |   | Six Months Ended |   |
|-----------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                                      |   | June 30,           |    |   | June 30,         |   |
|                                                      |   | 2010               |    |   | 2009             |   |   | 2010 |   |   | 2009 |   |
|                                                      |   | (In Millions)      |    |
|                                                      |   |               |    |
| Net earnings (loss)                                       |   | $                  | 1,641.8 |   |             | $      | (1,263.1 | ) |   | $ | 2,109.7 |   |   | $ | (1,560.7 | ) |
|                                                      |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income,                               |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| net of income taxes:                                      |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Change in unrealized gains, net of                        |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| reclassification adjustment                               |   |               | 218.0   |   |             |   | 838.5 |   |   |   | 360.5 |   |   |   | 572.2 |   |
| Changes in defined benefit plan                           |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| related items, not yet recognized in                      |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| periodic benefit cost, net of reclassification adjustment |   |               | (1.1    | )      |             |   | (15.0 | ) |   |   | (21.0 | ) |   |   | (16.6 | ) |
| Total other comprehensive income,                         |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| net of income taxes                                       |   |               | 216.9   |   |             |   | 823.5 |   |   |   | 339.5 |   |   |   | 555.6 |   |
| Comprehensive income (loss)                               |   |               | 1,858.7 |   |             |   | (439.6 | ) |   |   | 2,449.2 |   |   |   | (1,005.1 | ) |
| Comprehensive loss (income) attributable                  |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| to noncontrolling interest                                |   |               | 8.5     |   |             |   | (113.7 | ) |   |   | (74.4 | ) |   |   | (129.3 | ) |
| Comprehensive Income (Loss)                               |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Attributable to AXA Equitable                             |   | $                  | 1,867.2 |   |             | $      | (553.3 | ) |   | $ | 2,374.8 |   |   | $ | (1,134.4 | ) |

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| ·   | GMIB reinsurance contracts.  GMIB reinsurance contracts are used to cede to affiliated and non-affiliated reinsurers a portion of the exposure on variable annuity products that offer the GMIB feature.  Under U.S. GAAP, the GMIB reinsurance contracts ceded to non-affiliated reinsurers are accounted for as derivatives and are reported at fair value.  Gross reserves for GMIB, on the other hand, are calculated under U.S. GAAP on the basis of assumptions related to projected benefits and related contract charges over the lives of the contracts and therefore will not immediately reflect the offsetting impact on future claims exposure resulting from the same capital market and/or interest rate fluctuations that cause gains or losses on the fair value of the GMIB reinsurance contracts.  Because the changes in the fair value of the GMIB reinsurance contracts are recorded in the period in which they occur while offsetting changes in gross reserves for GMIB will be recognized over time, earnings will tend to be more volatile, particularly during periods in which equity markets and/or interest rates change significantly. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Hedging programs.  Hedging programs are used to hedge certain risks associated with the VA Guarantee Features.  These programs currently utilize various derivative instruments that are managed in an effort to reduce the economic impact of unfavorable changes in VA Guarantee Features’ exposures attributable to movements in the equity and interest rate markets.  Although these programs are designed to provide a measure of economic protection against the impact adverse market conditions may have with respect to VA Guarantee Features, they do not qualify for hedge accounting treatment under U.S. GAAP, meaning that as in the case of the GMIB reinsurance contracts, changes in the value of the derivatives will be recognized in the period in which they occur while offsetting changes in reserves will be recognized over time, which will contribute to earnings volatility. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                             |   |                      |    |   | Year ended   |   |
|--------------------------------------------------|--------|---------------------------|---------|--------|--------------|--------|
|                                             |   | Six months ended June 30, |    |   | December 31, |   |
|                                             |   | 2010                      |    |   | 2009         |   |   | 2009 |   |
|                                             |   | (In Millions)             |    |
|                                             |   |                      |    |   |         |   |   |   |   |
|                                             |   |                      |    |   |         |   |   |   |   |
| Gains (losses) on free-standing derivatives (1)  |   | $                         | 1,105.2 |   |         | $      | (1,753.8 | ) |   | $ | (3,079.4 | ) |
| Increase (decrease) in fair value of             |   |                      |    |   |         |   |   |   |   |   |   |   |
| GMIB reinsurance contracts (2)                   |   |                      | 1,779.8 |   |         |   | (2,135.8 | ) |   |   | (2,565.9 | ) |
| Increase (decrease)  in GMDB, GMIB and GWBL |   |                      |    |   |         |   |   |   |   |   |   |   |
| reserves, net of related GMDB reinsurance (3)    |   |                      | (715.0  | )      |         |   | 455.5 |   |   |   | 532.8 |   |
| Total                                            |   | $                         | 2,170.0 |   |         | $      | (3,434.1 | ) |   | $ | (5,112.5 | ) |

| (1)   | Reported in Net investment income (loss) in the consolidated statement of earnings (loss) |
|-----------------|-------------------------------------------------------------------------------------------|

| (2)   | Reported in Increase (decrease) in fair value of reinsurance contracts in the consolidated statement of earnings (loss) |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Reported in Policyholders’ benefits in the consolidated statement of earnings (loss) |
|-----------------|--------------------------------------------------------------------------------------------|

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|                              | June 30, |   |
|-----------------------------------|----------|--------|
|                              | 2010     |   | 2009 |   |
|                              |     |   |
| Third party                       |     | $      | 401,591 |   |   | $ | 394,830 |   |
| General Account and other         |     |   | 51,673 |   |   |   | 51,574 |   |
| Insurance Group Separate Accounts |     |   | 79,318 |   |   |   | 72,516 |   |
| Total Assets Under Management     |     | $      | 532,582 |   |   | $ | 518,920 |   |

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| PART II  | OTHER INFORMATION                                                                                                                                                                                                                                                                                                       |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                                                                                                                                                                    |
| Item 1.  | Legal Proceedings                                                                                                                                                                                                                                                                                                       |
|          |                                                                                                                                                                                                                                                                                                                    |
|          | See Note 11 of Notes to Consolidated Financial Statements contained herein.  Except as disclosed in Note 11 of Notes to Consolidated Financial Statements, there have been no new material legal proceedings and no new material developments in legal proceedings previously reported in the 2009 Form 10-K. |
|          |                                                                                                                                                                                                                                                                                                                    |
|          |                                                                                                                                                                                                                                                                                                                    |
| Item 1A.      | Risk Factors                                                                                                                                                                                                                                                                                                            |
|          |                                                                                                                                                                                                                                                                                                                    |
|          | There have been no material changes to the risk factors described in Part I, Item 1A, “Risk Factors,” included in the 2009 Form 10-K.                                                                                                                                                                       |
|          |                                                                                                                                                                                                                                                                                                                    |
|          |                                                                                                                                                                                                                                                                                                                    |
| Item 2.       | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                                             |
|          |                                                                                                                                                                                                                                                                                                                    |
|          | Omitted pursuant to General Instruction H to Form 10-Q.                                                                                                                                                                                                                                                                 |
|          |                                                                                                                                                                                                                                                                                                                    |
|          |                                                                                                                                                                                                                                                                                                                    |
| Item 3.       | Defaults Upon Senior Securities                                                                                                                                                                                                                                                                                         |
|          |                                                                                                                                                                                                                                                                                                                    |
|          | Omitted pursuant to General Instruction H to Form 10-Q.                                                                                                                                                                                                                                                                 |
|          |                                                                                                                                                                                                                                                                                                                    |
|          |                                                                                                                                                                                                                                                                                                                    |
| Item 4.       | (Removed and Reserved)                                                                                                                                                                                                                                                                                                  |
|          |                                                                                                                                                                                                                                                                                                                    |
|          | Omitted pursuant to General Instruction H to Form 10-Q.                                                                                                                                                                                                                                                                 |
|          |                                                                                                                                                                                                                                                                                                                    |
|          |                                                                                                                                                                                                                                                                                                                    |
| Item 5.       | Other Information                                                                                                                                                                                                                                                                                                       |
|          |                                                                                                                                                                                                                                                                                                                    |
|          | None                                                                                                                                                                                                                                                                                                                    |
|          |                                                                                                                                                                                                                                                                                                                    |
|          |                                                                                                                                                                                                                                                                                                                    |
| Item 6.       | Exhibits                                                                                                                                                                                                                                                                                                                |

|   | Number     |   | Description and Method of Filing                                                                                                                        |
|--------|------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |  31.1 |   |  Certification of the Registrant’s Chief Executive Officer pursuant to Section 302 of the     Sarbanes-Oxley Act of 2002 |
|   |       |   |                                                                                                                                                    |
|   | 31.2       |   | Certification of the Registrant’s Chief Financial Officer pursuant to Section 302 of the     Sarbanes-Oxley Act of 2002       |
|   |       |   |                                                                                                                                                    |
|   | 32.1       |   | Certification of the Registrant’s Chief Executive Officer pursuant to Section 906 of the     Sarbanes-Oxley Act of 2002       |
|   |       |   |                                                                                                                                                    |
|   | 32.2       |   | Certification of the Registrant’s Chief Financial Officer pursuant to Section 906 of the     Sarbanes-Oxley Act of 2002       |

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| Date:  | August 9, 2010 |   | AXA EQUITABLE LIFE INSURANCE COMPANY |                    |
|--------|----------------|--------|--------------------------------------|-------------------------|
|   |           |   |                                 |                    |   |
|   |           |   |                                 |                    |   |
|   |           |   | By:                                  | /s/ Richard S. Dziadzio |   |
|   |           |   |                                 | Name:                   | Richard S. Dziadzio |   |
|   |           |   |                                 | Title:                  | Senior Executive Vice President and |   |
|   |           |   |                                 |                    | Chief Financial Officer |   |
|   |           |   |                                 |                    |
|   |           |   |                                 |                    |
| Date:  | August 9, 2010 |   |                                 | /s/ Alvin H. Fenichel   |
|   |           |   |                                 | Name:                   | Alvin H. Fenichel |
|   |           |   |                                 | Title:                  | Senior Vice President and |
|   |           |   |                                 |                    | Chief Accounting Officer |

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