----

----

| x | ANNUAL REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|------------------------------------------------------------------------------------------------|

|   | OR |
|--------|----|

| ¨ | TRANSITION REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|----------------------------------------------------------------------------------------------------|

| COLORADO                                                           |   | 84-0467907                                   |
|--------------------------------------------------------------------|--------|----------------------------------------------|
| State      or other jurisdiction of incorporation or organization) |   | (I.R.S.      Employer Identification Number) |

|   | Yes      ¨ | No      x |   |
|--------|-----------------|-----------|--------|

|   | Yes      ¨ | No x |   |
|--------|-----------------|------|--------|

|   | Yes      x | No ¨ |   |
|--------|------------|-----------|--------|

|   | Yes      ¨ | No      ¨ |   |
|--------|-----------------|----------------|--------|

| Large      accelerated filer ¨ | Accelerated      filer ¨ | Non-accelerated      filer x | Smaller      reporting company  ¨ |
|-------------------------------------|-------------------------------|------------------------------|--------------------------------------------------|

|   | Yes      ¨ | No x |   |
|--------|-----------------|------|--------|

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|     |   |       |   |                                                                                       |   | Page   |
|----------|--------|------------|--------|--------------------------------------------------------------------------------------------|--------|--------|
|     |   |       |   |                                                                                       |   | Number |
|     |   |       |   |                                                                                       |   |   |   |
| Part I   |   | Item 1     |   | Business                                                                                   |   | 3      |   |
|     |   | 1.1        |   | Organization and Corporate Stucture                                                        |   | 3      |   |
|     |   | 1.2        |   | Business of the Company                                                                    |   | 3      |   |
|     |   | 1.3        |   | Company Segments                                                                           |   | 5      |   |
|     |   | 1.4        |   | Investment Operations                                                                      |   | 10     |   |
|     |   | 1.5        |   | Regulation                                                                                 |   | 11     |   |
|     |   | 1.6        |   | Ratings                                                                                    |   | 14     |   |
|     |   | 1.7        |   | Employees                                                                                  |   | 14     |   |
|     |   | 1.8        |   | Available Information                                                                      |   | 14     |   |
|     |   | Item 1 A   |   | Risk Factors                                                                               |   | 15     |   |
|     |   | Item 2     |   | Properties                                                                                 |   | 19     |   |
|     |   | Item 3     |   | Legal Proceedings                                                                          |   | 20     |   |
|     |   | Item 4     |   | Submission of Matters to a Vote of Security      Holders                                   |   | 20     |   |
| Part II  |   | Item 5     |   | Market for Registrant's Common Equity and Related Stockholder      Matters                 |   | 20     |   |
|     |   | 5.1        |   | Equity Security Holders and Market    Information                                          |   | 20     |   |
|     |   | 5.2        |   | Dividends                                                                                  |   | 20     |   |
|     |   | Item 6     |   | Selected Financial Data                                                                    |   | 20     |   |
|     |   | Item 7     |   | Management's Discussion and Analysis of Financial Condition      and Results of Operations |   | 21     |   |
|     |   | 7.1        |   | Executive Summary                                                                          |   | 21     |   |
|     |   | 7.2        |   | Summary of Critical Accounting Estimates                                                   |   | 23     |   |
|     |   | 7.3        |   | Company Results of Operations                                                              |   | 29     |   |
|     |   | 7.4        |   | Individual Markets Segment Results of      Operations                                      |   | 33     |   |
|     |   | 7.5        |   | Retirement Services Segment Results of      Operations                                     |   | 36     |   |
|     |   | 7.6        |   | Other Segment Results of Operations                                                        |   | 40     |   |
|     |   | 7.7        |   | Investment Operations                                                                      |   | 42     |   |
|     |   | 7.8        |   | Liquidity and Capital Resources                                                            |   | 47     |   |
|     |   | 7.9        |   | Off-Balance Sheet Arrangements                                                             |   | 48     |   |
|     |   | 7.10       |   | Contractual Obligations                                                                    |   | 49     |   |
|     |   | 7.11       |   | Application of Recent Accounting    Pronouncements                                         |   | 51     |   |
|     |   | Item 7 A   |   | Quantitative and Qualitative Disclosure About Market      Risk                             |   | 55     |   |
|     |   | Item 8     |   | Financial Statements and Supplementary Data                                                |   | 60     |   |
|     |   | Item 9     |   | Changes in and Disagreements With Accountants on Accounting      and Financial Disclosures |   | 118    |   |
|     |   | Item 9A(T) |   | Controls and Procedures                                                                    |   | 120    |   |
|     |   | Item 9 B   |   | Other Information                                                                          |   | 120    |   |
| Part III |   | Item 10    |   | Directors, Executive Officers and Corporate      Governance                                |   | 120    |   |
|     |   | 10.1       |   | Identification of Directors                                                                |   | 120    |   |
|     |   | 10.2       |   | Identification of Executive Officers                                                       |   | 123    |   |
|     |   | 10.3       |   | Code of Ethics                                                                             |   | 123    |   |
|     |   | 10.4       |   | Securtity Holder Communications                                                            |   | 123    |   |
|     |   | 10.5       |   | Audit Committee Financial Expert                                                           |   | 123    |   |
|     |   | Item 11    |   | Executive Compensation                                                                     |   | 123    |   |
|     |   | 11.1       |   | Compensation Discussion and Analysis                                                       |   | 123    |   |
|     |   | 11.2       |   | Compensation Committee Report                                                              |   | 124    |   |
|     |   | 11.3       |   | Compensation Committee Interlocks and Insider      Participation                           |   | 126    |   |
|     |   | 11.4       |   | Summary Compensation Table                                                                 |   | 127    |   |
|     |   | 11.5       |   | Grants of Plan-Based Awards for 2009                                                       |   | 128    |   |
|     |   | 11.6       |   | Outstanding Equity Awards at 2009 Fiscal Year      End                                     |   | 130    |   |
|     |   | 11.7       |   | Option Exercises for 2009                                                                  |   | 129    |   |
|     |   | 11.8       |   | Pension Benefits for 2009                                                                  |   | 129    |   |
|     |   | 11.9       |   | Nonqualified Deferred Compensation for2009                                                 |   | 131    |   |
|     |   | 11.10      |   | Compensation of Directors for 2009                                                         |   | 131    |   |
|     |   | Item 12    |   | Security Ownership of Certain Owners and      Management                                   |   | 136    |   |
|     |   | 12.1       |   | Security Ownership of Certain Beneficial      Owners                                       |   | 136    |   |
|     |   | 12.2       |   | Security Ownership of Management                                                           |   | 137    |   |
|     |   | Item 13    |   | Transactions with Related Persons, Promoters and Certain      Control Persons              |   | 138    |   |
|     |   | Item 14    |   | Principal Accounting Fees and Services                                                     |   | 139    |   |
|     |   | 14.1       |   | Principal Accounting Fees                                                                  |   | 139    |   |
|     |   | 14.2       |   | Pre-Approval Policies and Procedures                                                       |   | 139    |   |
| Part IV  |   | Item 15    |   | Exhibits and Financial Statement    Schedules                                              |   | 140    |   |
|     |   | 15.1       |   | Index to Financial Statements                                                              |   | 140    |   |
|     |   | 15.2       |   | Index to Exhibits                                                                          |   | 140    |   |
|     |   |       |   | Signatures                                                                                 |   | 142    |   |

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Part I

1.1  Organization and Corporate Structure

1.2  Business of the Company

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| Premium      income                                                               |   | $      | (1,387,179 | )      |
|-----------------------------------------------------------------------------------|--------|--------|------------|--------|
| Net      investment income                                                        |   |   | 58,569     |   |
| Net      realized losses on investments                                           |   |   | (14,797    | )      |
| Total      revenues                                                               |   |   | (1,343,407 | )      |
| Decrease      in reserves                                                         |   |   | (1,453,145 | )      |
| Provision      for policyholders' share of earnings on participating    business  |   |   | 8,161      |   |
| Amortization      of deferred acquisition costs and value of business    acquired |   |   | 62,961     |   |
| Total      benefits and expenses                                                  |   |   | (1,382,023 | )      |
| Income      before income taxes                                                   |   |   | 38,616     |   |
| Income      taxes                                                                 |   |   | 16,372     |   |
| Net      income                                                                   |   | $      | 22,244     |   |

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1.3  Company Segments

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|                              |   | (In      millions)                    |   |
|-----------------------------------|--------|---------------------------------------|--------|
| Year      Ended December 31, |   | General      Account Annuity Benefits |   |   | Retirement      Services Separate Accounts |   |   | Individual      Markets Annuity Separate Accounts |   |
| 2009                              |   | $                                     | 8,874  |   |   | $ | 14,288 |   |   | $ | 1,262 |   |
| 2008                              |   |                                  | 8,598  |   |   |   | 10,403 |   |   |   | 1,144 |   |
| 2007                              |   |                                  | 8,193  |   |   |   | 13,482 |   |   |   | 1,533 |   |
| 2006                              |   |                                  | 8,635  |   |   |   | 12,487 |   |   |   | 1,405 |   |
| 2005                              |   |                                  | 7,913  |   |   |   | 11,378 |   |   |   | 1,237 |   |

|                                   |   | (In      millions)                         |   |
|----------------------------------------|--------|--------------------------------------------|--------|
| Year      Ended December 31, |   | Life      Insurance Future Policy Benefits |   |   | Individual      Markets Life Insurance Separate Accounts |   |   | Life      Insurance In-Force |   |
| 2009                                   |   | $                                          | 9,756  |   |   | $ | 3,337 |   |   | $ | 137,049 |   |
| 2008                                   |   |                                       | 9,183  |   |   |   | 3,575 |   |   |   | 142,177 |   |
| 2007                                   |   |                                       | 8,906  |   |   |   | 3,075 |   |   |   | 146,297 |   |
| 2006                                   |   |                                       | 10,345 |   |   |   | 2,398 |   |   |   | 138,410 |   |
| 2005                                   |   |                                       | 9,964  |   |   |   | 1,841 |   |   |   | 141,282 |   |

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|                         |   | December 31, |   |
|------------------------------|--------|-------------------|--------|
| (In      millions)           |   | 2009              |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Future      policy benefits  |   | $                 | 342    |   |   | $ | 321 |   |   | $ | 277 |   |   | $ | 221 |   |   | $ | 167 |   |
| Life      insurance in-force |   |              | 76,768 |   |   |   | 80,992 |   |   |   | 85,618 |   |   |   | 70,281 |   |   |   | 74,282 |   |

1.4  Investment Operations

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|                                                                 |   | December 31, |   |
|----------------------------------------------------------------------|--------|-------------------|--------|
| Carrying Value (Inmillions)                                          |   | 2009              |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Fixed      maturities, available-for-sale:                           |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.      government direct obligations and U.S. agencies            |   | $                 | 2,039  |   |   | $ | 2,431 |   |   | $ | 2,734 |   |   | $ | 3,675 |   |   | $ | 3,368 |   |
| Obligations      of U.S. states and their foreign subdivisions       |   |              | 1,364  |   |   |   | 1,149 |   |   |   | 1,273 |   |   |   | 1,318 |   |   |   | 1,302 |   |
| Foreign      governments                                             |   |              | -      |   |   |   | 1 |   |   |   | 2 |   |   |   | 14 |   |   |   | 21 |   |
| Corporate      debt securities                                       |   |              | 7,130  |   |   |   | 5,025 |   |   |   | 5,324 |   |   |   | 5,755 |   |   |   | 5,489 |   |
| Mortgage-backed      and asset-backed securities                     |   |              | 3,385  |   |   |   | 3,367 |   |   |   | 4,218 |   |   |   | 4,548 |   |   |   | 3,587 |   |
| Total      fixed maturities, available-for-sale                      |   |              | 13,918 |   |   |   | 11,973 |   |   |   | 13,551 |   |   |   | 15,310 |   |   |   | 13,767 |   |
|                                                                 |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      investments:                                              |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed      maturities, held for trading                              |   |              | 140    |   |   |   | 39 |   |   |   | 23 |   |   |   | - |   |   |   | - |   |
| Mortgage      loans on real estate                                   |   |              | 1,554  |   |   |   | 1,380 |   |   |   | 1,200 |   |   |   | 1,338 |   |   |   | 1,461 |   |
| Equity      investments available-for-sale                           |   |              | 26     |   |   |   | 18 |   |   |   | 30 |   |   |   | 29 |   |   |   | 159 |   |
| Policy      loans                                                    |   |              | 3,972  |   |   |   | 3,979 |   |   |   | 3,768 |   |   |   | 3,798 |   |   |   | 3,716 |   |
| Short-term      investments, available-for-sale                      |   |              | 488    |   |   |   | 367 |   |   |   | 473 |   |   |   | 961 |   |   |   | 1,070 |   |
| Limited      partnership and limited liability corporation interests |   |              | 254    |   |   |   | 294 |   |   |   | 327 |   |   |   | 345 |   |   |   | 365 |   |
| Other      investments                                               |   |              | 24     |   |   |   | 32 |   |   |   | 11 |   |   |   | 4 |   |   |   | 5 |   |
| Total      investments                                               |   | $                 | 20,376 |   |   | $ | 18,082 |   |   | $ | 19,383 |   |   | $ | 21,785 |   |   | $ | 20,543 |   |
|                                                                 |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                                                                 |   | $                 | 171    |   |   | $ | 28 |   |   | $ | 55 |   |   | $ | 33 |   |   | $ | 58 |   |
| Accrued      investment income                                       |   |              | 225    |   |   |   | 146 |   |   |   | 143 |   |   |   | 160 |   |   |   | 151 |   |

|                         |   | (In      millions)         |   | Earned      Net             |
|------------------------------|--------|----------------------------|--------|-----------------------------|
| Year      Ended December 31, |   | Net      Investment Income |   | Investment      Income Rate |
| 2009                         |   | $1,149                     |   | 6.39%                       |
| 2008                         |   | 1,078                      |   | 6.16%                       |
| 2007                         |   | 1,140                      |   | 5.98%                       |
| 2006                         |   | 1,110                      |   | 5.81%                       |
| 2005                         |   | 1,044                      |   | 5.82%                       |

1.5  Regulation

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1.6  Ratings

| Rating      Agency                         |   | Measurement                                                         |   | Current      Rating |
|--------------------------------------------|--------|---------------------------------------------------------------------|--------|---------------------|
| A.M.      Best, Inc.                       |   | Financial      strength, operating performance and business profile |   | A+      1           |
| Fitch      Ratings                         |   | Financial      strength                                             |   | AA+      2          |
| Moody's      Investor Service              |   | Financial      strength                                             |   | Aa3      3          |
| Standard      & Poor's Rating Services |   | Financial      strength                                             |   | AA      2           |

1.7  Employees

1.8  AvailableInformation

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Item  1A.

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| · | changes      in tax laws that would reduce or eliminate tax-deferred accumulation of      earnings on the premiums paid by the holders of annuities and life      insurance products; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | reductions      in the federal income tax that investors are required to pay on long-term      capital gains and on some dividends paid on stock may provide an incentive      for some of the Company’s customers and potential customers to shift      assets into mutual funds and away from products, including life insurance      and annuities, designed to defer taxes payable on investment      returns; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | changes      in applicable regulations that could restrict the ability of some      companies to purchase certain BOLIproducts; |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

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| · | changes      in the availability of, or rules concerning the establishment and      operation of, Section 401, 403(b), 408 and 457 plans  and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| · | repeal      of the federal estate tax. |
|--------|----------------------------------------|

Item 2.

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Item 3.

Item 4.

Part II

5.1  Equity Security Holders and MarketInformation

5.2  Dividends

Item 6.

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|                                       |   | As      of and for the Year Ended December 31, |   |
|--------------------------------------------|--------|-----------------------------------------------------|--------|
| (In      millions)                         |   | 2009                                                |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Total      revenues                        |   | $                                                   | 2,028  |   |   | $ | 2,011 |   |   | $ | 744 |   |   | $ | 2,024 |   |   | $ | 2,012 |   |
| Total      benefits and expenses           |   |                                                | 1,859  |   |   |   | 1,470 |   |   |   | 385 |   |   |   | 1,768 |   |   |   | 1,764 |   |
| Income      from continuing operations     |   |                                                | 169    |   |   |   | 541 |   |   |   | 359 |   |   |   | 256 |   |   |   | 248 |   |
| Provision      for income taxes            |   |                                                | 47     |   |   |   | 96 |   |   |   | 119 |   |   |   | 72 |   |   |   | 66 |   |
| Income      from discontinued operations 1 |   |                                                | -      |   |   |   | 653 |   |   |   | 179 |   |   |   | 153 |   |   |   | 190 |   |
| Net      income                            |   | $                                                   | 122    |   |   | $ | 1,098 |   |   | $ | 419 |   |   | $ | 337 |   |   | $ | 372 |   |
|                                       |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      declared                    |   | $                                                   | 25     |   |   | $ | 1,772 |   |   | $ | 605 |   |   | $ | 249 |   |   | $ | 221 |   |
|                                       |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      assets                     |   | $                                                   | 20,376 |   |   | $ | 18,082 |   |   | $ | 19,383 |   |   | $ | 21,785 |   |   | $ | 20,543 |   |
| Separate      account assets               |   |                                                | 18,887 |   |   |   | 15,122 |   |   |   | 18,090 |   |   |   | 16,290 |   |   |   | 14,456 |   |
| Total      assets                          |   |                                                | 41,798 |   |   |   | 36,176 |   |   |   | 40,335 |   |   |   | 41,526 |   |   |   | 37,779 |   |
| Due      to parent and affiliates          |   |                                                | 538    |   |   |   | 534 |   |   |   | 535 |   |   |   | 548 |   |   |   | 241 |   |
| Total      stockholder's equity            |   |                                                | 1,350  |   |   |   | 609 |   |   |   | 2,035 |   |   |   | 2,173 |   |   |   | 2,062 |   |

Item  7.

7.1  Executive Summary

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|                   |   | Year      Ended December 31, |   |
|------------------------|--------|------------------------------|--------|
| S&P      500 Index |   | 2009                         |   |   | 2008 |   |   | 2007 |   |
| Index      close       |   |                         | 1,115  |   |   |   | 903 |   |   |   | 1,468 |   |
| Index      average     |   |                         | 948    |   |   |   | 1,220 |   |   |   | 1,477 |   |

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7.2  Summary of Critical Accounting Estimates

| · | Valuation      of investments and other-than-temporary  impairments. |
|--------|----------------------------------------------------------------------|

| · | Recognition      of income on certain investments. |
|--------|----------------------------------------------------|

| · | Valuation      and accounting for derivativeinstruments. |
|--------|----------------------------------------------------------|

| · | Policy      and contract benefits and claims. |
|--------|-----------------------------------------------|

| · | Deferred      acquisition costs and value of business  acquired. |
|--------|------------------------------------------------------------------|

| · | Goodwill. |
|--------|-----------|

| · | Employee      benefit plans. |
|--------|------------------------------|

| · | Taxes      on income |
|--------|----------------------|

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| · | Fair      value is below cost. |
|--------|--------------------------------|

| · | The      decline in fair value is attributable to specific adverse conditions      affecting a particular instrument, its issuer, an industry or geographic      area. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The      decline in fair value has existed for an extended period of      time. |
|--------|---------------------------------------------------------------------------------|

| · | The      fixed maturity investment has been downgraded by a credit rating      agency. |
|--------|----------------------------------------------------------------------------------------|

| · | The      financial condition of the issuer has  deteriorated. |
|--------|---------------------------------------------------------------|

| · | The      payment structure of the fixed maturity investment and the likelihood of      the issuer being able to make payments that increase in the      future. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Dividends      have been reduced or eliminated or scheduled interest payments have not      been made. |
|--------|--------------------------------------------------------------------------------------------------------|

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7.3  Company Results of Operations

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|                                                       |   | Year      Ended December 31, |   |
|------------------------------------------------------------|--------|-----------------------------------|--------|
| Income      Statement Data (In millions)                   |   | 2009                              |   |   | 2008 |   |
| Premium      income                                        |   | $                                 | 560    |   |   | $ | 525 |   |
| Fee      income                                            |   |                              | 386    |   |   |   | 429 |   |
| Net      investment income                                 |   |                              | 1,149  |   |   |   | 1,079 |   |
| Net      realized investment losses                        |   |                              | (67    | ) |   |   | (22 | ) |
| Total      revenues                                        |   |                              | 2,028  |   |   |   | 2,011 |   |
| Policyholder      benefits                                 |   |                              | 1,326  |   |   |   | 948 |   |
| Operating      expenses                                    |   |                              | 533    |   |   |   | 522 |   |
| Total      benefits and expenses                           |   |                              | 1,859  |   |   |   | 1,470 |   |
| Income      from continuing operations before income taxes |   |                              | 169    |   |   |   | 541 |   |
| Income      tax expense                                    |   |                              | 47     |   |   |   | 96 |   |
| Income      from continuing operations                     |   |                              | 122    |   |   |   | 445 |   |
| Income      from discontinued operations                   |   |                              | -      |   |   |   | 653 |   |
| Net      income                                            |   | $                                 | 122    |   |   | $ | 1,098 |   |

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|                                                            |   | Year      Ended December 31, |   |
|-----------------------------------------------------------------|--------|-----------------------------------|--------|
| Income      Statement Data (In millions)                        |   | 2008                              |   |   | 2007 |   |
| Premium      income                                             |   | $                                 | 525    |   |   | $ | (857 | ) |
| Fee      income                                                 |   |                              | 429    |   |   |   | 463 |   |
| Net      investment income                                      |   |                              | 1,079  |   |   |   | 1,140 |   |
| Net      realized investment losses                             |   |                              | (22    | ) |   |   | (2 | ) |
| Total      revenues                                             |   |                              | 2,011  |   |   |   | 744 |   |
| Policyholder      benefits                                      |   |                              | 948    |   |   |   | (225 | ) |
| Operating      expenses                                         |   |                              | 522    |   |   |   | 610 |   |
| Total      benefits and expenses                                |   |                              | 1,470  |   |   |   | 385 |   |
| Income      from continuing operations before      income taxes |   |                              | 541    |   |   |   | 359 |   |
| Income      tax expense                                         |   |                              | 96     |   |   |   | 119 |   |
| Income      from continuing operations                          |   |                              | 445    |   |   |   | 240 |   |
| Income      from discontinued operations                        |   |                              | 653    |   |   |   | 179 |   |
| Net      income                                                 |   | $                                 | 1,098  |   |   | $ | 419 |   |

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7.4  Individual Markets Segment Results ofOperations

|                                     |   | Year      Ended December 31, |   |
|------------------------------------------|--------|-----------------------------------|--------|
| Income      Statement Data (In millions) |   | 2009                              |   |   | 2008 |   |
| Premium      income                      |   | $                                 | 428    |   |   | $ | 378 |   |
| Fee      income                          |   |                              | 50     |   |   |   | 56 |   |
| Net      investment income               |   |                              | 718    |   |   |   | 692 |   |
| Net      realized investment losses      |   |                              | (38    | ) |   |   | (12 | ) |
| Total      revenues                      |   |                              | 1,158  |   |   |   | 1,114 |   |
| Policyholder      benefits               |   |                              | 982    |   |   |   | 890 |   |
| Operating      expenses                  |   |                              | 102    |   |   |   | 109 |   |
| Total      benefits and expenses         |   |                              | 1,084  |   |   |   | 999 |   |
| Income      before income taxes          |   |                              | 74     |   |   |   | 115 |   |
| Income      tax expense                  |   |                              | 19     |   |   |   | 36 |   |
| Income      from continuing operations   |   | $                                 | 55     |   |   | $ | 79 |   |

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|                      |   | December 31, |   |
|---------------------------|--------|-------------------|--------|
| (In      thousands)       |   | 2009              |   |   | 2008 |   |
| Participant      Accounts |   |              | 521    |   |   |   | 533 |   |

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|                                     |   | Year      Ended December 31, |   |
|------------------------------------------|--------|-----------------------------------|--------|
| Income      Statement Data (In millions) |   | 2008                              |   |   | 2007 |   |
| Premium      income                      |   | $                                 | 378    |   |   | $ | (1,027 | ) |
| Fee      income                          |   |                              | 56     |   |   |   | 69 |   |
| Net      investment income               |   |                              | 692    |   |   |   | 759 |   |
| Net      realized investment losses      |   |                              | (12    | ) |   |   | (8 | ) |
| Total      revenues                      |   |                              | 1,114  |   |   |   | (207 | ) |
| Policyholder      benefits               |   |                              | 890    |   |   |   | (578 | ) |
| Operating      expenses                  |   |                              | 109    |   |   |   | 191 |   |
| Total      benefits and expenses         |   |                              | 999    |   |   |   | (387 | ) |
| Income      before income taxes          |   |                              | 115    |   |   |   | 180 |   |
| Income      tax expense                  |   |                              | 36     |   |   |   | 60 |   |
| Income      from continuing operations   |   | $                                 | 79     |   |   | $ | 120 |   |

|                      |   | December 31, |   |
|---------------------------|--------|-------------------|--------|
| (In      thousands)       |   | 2008              |   |   | 2007 |   |
| Participant      Accounts |   |              | 533    |   |   |   | 556 |   |

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7.5  Retirement Services Segment Results ofOperations

|                                     |   | Year      Ended December 31, |   |
|------------------------------------------|--------|-----------------------------------|--------|
| Income      Statement Data (In millions) |   | 2009                              |   |   | 2008 |   |
| Premium      income                      |   | $                                 | 3      |   |   | $ | 2 |   |
| Fee      income                          |   |                              | 331    |   |   |   | 368 |   |
| Net      investment income               |   |                              | 383    |   |   |   | 352 |   |
| Net      realized investment losses      |   |                              | (23    | ) |   |   | (10 | ) |
| Total      revenues                      |   |                              | 694    |   |   |   | 712 |   |
| Policyholder      benefits               |   |                              | 231    |   |   |   | 230 |   |
| Operating      expenses                  |   |                              | 360    |   |   |   | 324 |   |
| Total      benefits and expenses         |   |                              | 591    |   |   |   | 554 |   |
| Income      before income taxes          |   |                              | 103    |   |   |   | 158 |   |
| Income      tax expense                  |   |                              | 28     |   |   |   | 41 |   |
| Income      from continuing operations   |   | $                                 | 75     |   |   | $ | 117 |   |

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|                      |   | December 31, |   |
|---------------------------|--------|-------------------|--------|
| (In      thousands)       |   | 2009              |   |   | 2008 |   |
| Participant      Accounts |   |              | 4,201  |   |   |   | 3,739 |   |

|                                       |   | Year      Ended December 31, |    |
|--------------------------------------------|--------|------------------------------|---------|
| (In      millions)                         |   | 2009                         |    |   | 2008 |   |
| General      Account - Fixed Options:      |   |                         |    |   |   |   |
| Public      / Non-profit                   |   | $                            | 3,408   |   |   | $ | 3,302 |   |
| 401(k)                                     |   |                         | 3,563   |   |   |   | 3,269 |   |
|                                       |   | $                            | 6,971   |   |   | $ | 6,571 |   |
| Separate      Accounts - Variable Options: |   |                         |    |   |   |   |   |   |
| Public      / Non-profit                   |   | $                            | 7,628   |   |   | $ | 5,639 |   |
| 401(k)                                     |   |                         | 6,282   |   |   |   | 4,651 |   |
|                                       |   | $                            | 13,910  |   |   | $ | 10,290 |   |
| Unaffiliated      Retail:                  |   |                         |    |   |   |   |   |   |
| Investment      Options and Administrative |   |                         |    |   |   |   |   |   |
| Services      Only:                        |   |                         |    |   |   |   |   |   |
| Public      / Non-profit                   |   | $                            | 46,496  |   |   | $ | 36,829 |   |
| 401(k)                                     |   |                         | 19,905  |   |   |   | 14,639 |   |
| Institutional                              |   |                         | 35,815  |   |   |   | 23,603 |   |
|                                       |   | $                            | 102,216 |   |   | $ | 75,071 |   |

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|                                        |   | Year      Ended December 31, |   |
|---------------------------------------------|--------|-----------------------------------|--------|
| Income      Statement Data (In millions)    |   | 2008                              |   |   | 2007 |   |
| Premium      income                         |   | $                                 | 2      |   |   | $ | 5 |   |
| Fee      income                             |   |                              | 368    |   |   |   | 389 |   |
| Net      investment income                  |   |                              | 352    |   |   |   | 351 |   |
| Net      realized investment gains (losses) |   |                              | (10    | ) |   |   | 5 |   |
| Total      revenues                         |   |                              | 712    |   |   |   | 750 |   |
| Policyholder      benefits                  |   |                              | 230    |   |   |   | 225 |   |
| Operating      expenses                     |   |                              | 324    |   |   |   | 339 |   |
| Total      benefits and expenses            |   |                              | 554    |   |   |   | 564 |   |
| Income      before income taxes             |   |                              | 158    |   |   |   | 186 |   |
| Income      tax expense                     |   |                              | 41     |   |   |   | 58 |   |
| Income      from continuing operations      |   | $                                 | 117    |   |   | $ | 128 |   |

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|                      |   | December 31, |   |
|---------------------------|--------|-------------------|--------|
| (In      thousands)       |   | 2008              |   |   | 2007 |   |
| Participant      Accounts |   |              | 3,739  |   |   |   | 3,520 |   |

|                                       |   | Year      Ended December 31, |   |
|--------------------------------------------|--------|-----------------------------------|--------|
| (In      millions)                         |   | 2008                              |   |   | 2007 |   |
| General      Account - Fixed Options:      |   |                              |   |   |   |   |
| Public      / Non-profit                   |   | $                                 | 3,302  |   |   | $ | 3,342 |   |
| 401(k)                                     |   |                              | 3,269  |   |   |   | 2,656 |   |
|                                       |   | $                                 | 6,571  |   |   | $ | 5,998 |   |
| Separate      Accounts - Variable Options: |   |                              |   |   |   |   |   |   |
| Public      / Non-profit                   |   | $                                 | 5,639  |   |   | $ | 6,457 |   |
| 401(k)                                     |   |                              | 4,651  |   |   |   | 6,920 |   |
|                                       |   | $                                 | 10,290 |   |   | $ | 13,377 |   |
| Unaffiliated      Retail:                  |   |                              |   |   |   |   |   |   |
| Investment      Options and Administrative |   |                              |   |   |   |   |   |   |
| Services      Only:                        |   |                              |   |   |   |   |   |   |
| Public      / Non-profit                   |   | $                                 | 36,829 |   |   | $ | 46,319 |   |
| 401(k)                                     |   |                              | 14,639 |   |   |   | 22,386 |   |
| Institutional                              |   |                              | 23,603 |   |   |   | 27,509 |   |
|                                       |   | $                                 | 75,071 |   |   | $ | 96,214 |   |

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7.6  Other Segment Results ofOperations

|                                          |   | Year      Ended December 31, |   |
|-----------------------------------------------|--------|-----------------------------------|--------|
| Income      Statement Data (In millions)      |   | 2009                              |   |   | 2008 |   |
| Premium      income                           |   | $                                 | 129    |   |   | $ | 145 |   |
| Fee      income                               |   |                              | 5      |   |   |   | 5 |   |
| Net      investment income                    |   |                              | 48     |   |   |   | 35 |   |
| Net      realized investment gains (losses)   |   |                              | (6     | ) |   |   | - |   |
| Total      revenues                           |   |                              | 176    |   |   |   | 185 |   |
| Policyholder      benefits                    |   |                              | 113    |   |   |   | (172 | ) |
| Operating      expenses                       |   |                              | 71     |   |   |   | 89 |   |
| Total      benefits and expenses              |   |                              | 184    |   |   |   | (83 | ) |
| Income      before income taxes               |   |                              | (8     | ) |   |   | 268 |   |
| Income      tax expense (benefit)             |   |                              | -      |   |   |   | 19 |   |
| Income      (loss) from continuing operations |   | $                                 | (8     | ) |   | $ | 249 |   |

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|                                     |   | Year      Ended December 31, |   |
|------------------------------------------|--------|-----------------------------------|--------|
| Income      Statement Data (In millions) |   | 2008                              |   |   | 2007 |   |
| Premium      income                      |   | $                                 | 145    |   |   | $ | 165 |   |
| Fee      income                          |   |                              | 5      |   |   |   | 5 |   |
| Net      investment income               |   |                              | 35     |   |   |   | 30 |   |
| Net      realized investment gains       |   |                              | -      |   |   |   | 1 |   |
| Total      revenues                      |   |                              | 185    |   |   |   | 201 |   |
| Policyholder      benefits               |   |                              | (172   | ) |   |   | 128 |   |
| Operating      expenses                  |   |                              | 89     |   |   |   | 80 |   |
| Total      benefits and expenses         |   |                              | (83    | ) |   |   | 208 |   |
| Income      before income taxes          |   |                              | 268    |   |   |   | (7 | ) |
| Income      tax expense                  |   |                              | 19     |   |   |   | 1 |   |
| Income      from continuing operations   |   | $                                 | 249    |   |   | $ | (8 | ) |

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7.7  Investment Operations

|                                                                 |   | December 31, |   |
|----------------------------------------------------------------------|--------|-------------------|--------|
| (In      millions)                                                   |   | 2009              |   |   | 2008 |   |
| Fixed      maturities, available-for-sale                            |   | $                 | 13,918 |   |   |   | 68.3 | % |   | $ | 11,973 |   |   |   | 66.2 | % |
| Fixed      maturities, held for trading                              |   |              | 140    |   |   |   | 0.7 | % |   |   | 39 |   |   |   | 0.2 | % |
| Mortgage      loans on real estate                                   |   |              | 1,554  |   |   |   | 7.6 | % |   |   | 1,380 |   |   |   | 7.6 | % |
| Equity      investments, available-for-sale                          |   |              | 26     |   |   |   | 0.1 | % |   |   | 18 |   |   |   | 0.1 | % |
| Policy      loans                                                    |   |              | 3,972  |   |   |   | 19.5 | % |   |   | 3,979 |   |   |   | 22.0 | % |
| Short-term      investments, available-for-sale                      |   |              | 488    |   |   |   | 2.4 | % |   |   | 367 |   |   |   | 2.1 | % |
| Limited      partnership and limited liability corporation interests |   |              | 254    |   |   |   | 1.3 | % |   |   | 294 |   |   |   | 1.6 | % |
| Other      investments                                               |   |              | 24     |   |   |   | 0.1 | % |   |   | 32 |   |   |   | 0.2 | % |
| Total      investment assets                                         |   | $                 | 20,376 |   |   |   | 100.0 | % |   | $ | 18,082 |   |   |   | 100.0 | % |

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|                                     |   | December 31, |   |
|------------------------------------------|--------|-------------------|--------|
| Credit      rating                       |   | 2009              |   |   | 2008 |   |
| AAA                                      |   |              | 39.2   | % |   |   | 50.1 | % |
| AA                                       |   |              | 12.3   | % |   |   | 9.4 | % |
| A                                        |   |              | 20.8   | % |   |   | 20.3 | % |
| BBB                                      |   |              | 23.4   | % |   |   | 18.4 | % |
| BB      and below (Non-investment grade) |   |              | 4.3    | % |   |   | 1.8 | % |
| Total                                    |   |              | 100.0  | % |   |   | 100.0 | % |

|                   |   | December 31, |   |
|------------------------|--------|-------------------|--------|
| Sector                 |   | 2009              |   |   | 2008 |   |
| Utility                |   |              | 15.0   | % |   |   | 11.9 | % |
| Finance                |   |              | 10.1   | % |   |   | 8.8 | % |
| Consumer               |   |              | 8.6    | % |   |   | 6.6 | % |
| Natural      resources |   |              | 6.3    | % |   |   | 4.4 | % |
| Transportation         |   |              | 2.6    | % |   |   | 2.8 | % |
| Other                  |   |              | 8.6    | % |   |   | 7.3 | % |

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|                                                                    |   | Guarantor      Quality Rating |   |   | Indirect      Exposure |   |
|-------------------------------------------------------------------------|--------|-------------------------------|--------|--------|------------------------|--------|
| Guarantor      (In millions)                                            |   | S&P                       |   |   | Moody's                |   |   | December 31,      2009 |   |
| AMBAC                                                                   |   | CC                            |   |   | Caa2                   |   |   | $ | 269 |   |
| MBIA,      Inc.                                                         |   | BB+                           |   |   | B3                     |   |   |   | 269 |   |
| Assured      Guaranty Corp. (formerly Financial Security Assurance,Inc) |   | AAA                           |   |   | Aa3                    |   |   |   | 113 |   |
| Berkshire      Hathaway Assurance Corp.                                 |   | AAA                           |   |   | Aaa                    |   |   |   | 34 |   |
| National      Public Finance Guaranty Corporation                       |   | A                             |   |   | Baa1                   |   |   |   | 100 |   |
|                                                                    |   |                          |   |   |                   |   |   |   |   | $ | 785 |   |

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| (Dollars      in thousands)  |   | Number      of |   |   | Estimated       |   |      | Unrealized |   |
|------------------------------|--------|----------------|--------|--------|-----------------|--------|-----------|------------|--------|
| December      31, 2009       |   | Securities     |   |   | Fair      Value |   |      | Loss       |   |
| Six      months or less      |   |           | 20     |   |            | $      | 98,033    |       |   | $ | 45,888 |   |
| Six      to twelve months    |   |           | 45     |   |            |   | 214,024   |       |   |   | 113,489 |   |
| More      than twelve months |   |           | 132    |   |            |   | 594,523   |       |   |   | 279,670 |   |
| Total                        |   |           | 197    |   |            | $      | 906,580   |       |   | $ | 439,047 |   |
|                         |   |           |   |   |            |   |      |       |   |   |   |   |
| (Dollars      in thousands)  |   | Number      of |   |   | Estimated       |   |      | Unrealized |   |
| December      31, 2008       |   | Securities     |   |   | Fair      Value |   |      | Loss       |   |
| Six      months or less      |   |           | 309    |   |            | $      | 1,324,517 |       |   | $ | 602,736 |   |
| Six      to twelve months    |   |           | 99     |   |            |   | 495,713   |       |   |   | 373,329 |   |
| More      than twelve months |   |           | 30     |   |            |   | 49,029    |       |   |   | 52,547 |   |
| Total                        |   |           | 438    |   |            | $      | 1,869,259 |       |   | $ | 1,028,612 |   |

|   | · | The      Company holds approximately $5,246 million in various mortgage-backed and      asset-backed collateralized mortgage securities including securities      backed by U.S. agencies, of which $3,178 million are experiencing      unrealized losses of approximately $509 million at December 31,      2009.  Included in this amount is $308 million which has      declined and remained below amortized cost by 20% or more.  Of      the $509 million in unrealized losses, approximately $189 million is      related to securities on which there had been a credit rating downgrade      since December 31, 2008.  Of the $189 million, $72 million are      rated investment grade and $117 million are rated non-investment grade at      December 31, 2009.  The non-investment grade rated securities      are primarily asset-backed securities with home improvement and home      equity loan collateral.  Future changes in the fair value of      these securities will be dependent upon market liquidity and general      market conditions. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Company holds approximately $7,075 million of corporate debt securities of      which $1,824 million are experiencing unrealized losses of approximately      $216 million at December 31, 2009.  Included in this amount is      $131 million which has declined and remained below amortized cost by 20%      or more.  Approximately $123 million of the $216 million was      related to securities on which there had been a credit rating downgrade      since December 31, 2008.  Of the $123 million, $57 million are      rated investment grade and $66 million are rated non-investment grade at      December 31, 2009. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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7.8  Liquidity and CapitalResources

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7.9  Off-Balance SheetArrangements

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7.10  Contractual Obligations

|                                                    |   | Payment      due by period |      |
|---------------------------------------------------------|--------|----------------------------|-----------|
|                                                    |   |                       |      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   | Less      than             |      |   | One      to |   |   | Three      to |   |   | More      than |   |   |   |   |
| (In      thousands)                                     |   | one      year              |      |   | three      years |   |   | five      years |   |   | five      years |   |   | Total |   |
| Future      policy benefits                             |   | $                          | 2,029,442 |   |   | $ | 3,634,481 |   |   | $ | 3,115,341 |   |   | $ | 37,662,565 |   |   | $ | 46,441,829 |   |
| Policy      and contract claims 2                       |   |                       | 201,861   |   |   |   | 24,675 |   |   |   | 19,905 |   |   |   | 79,193 |   |   |   | 325,634 |   |
| Policyholders'      funds 3                             |   |                       | 358,795   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 358,795 |   |
| Provision      for policyholder dividends 4             |   |                       | 69,494    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 69,494 |   |
| Undistributed      earnings on participating business 5 |   |                       | -         |   |   |   | - |   |   |   | - |   |   |   | 3,580 |   |   |   | 3,580 |   |
| Related      party long-term debt - principal 6         |   |                       | -         |   |   |   | - |   |   |   | - |   |   |   | 528,400 |   |   |   | 528,400 |   |
| Related      party long-term debt - interest 7          |   |                       | 37,177    |   |   |   | 74,365 |   |   |   | 74,365 |   |   |   | 1,015,069 |   |   |   | 1,200,976 |   |
| Repurchase      agreements 8                            |   |                       | 491,338   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 491,338 |   |
| Commercial      paper 8                                 |   |                       | 97,613    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 97,613 |   |
| Payable      under securities lending agreements      9 |   |                       | 38,296    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 38,296 |   |
| Investment      purchase obligations 10                 |   |                       | 126,882   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 126,882 |   |
| Operating      leases 11                                |   |                       | 11,872    |   |   |   | 7,644 |   |   |   | 4,959 |   |   |   | 1,227 |   |   |   | 25,702 |   |
| Other      liabilities 12                               |   |                       | 136,558   |   |   |   | 33,754 |   |   |   | 36,162 |   |   |   | 113,799 |   |   |   | 320,273 |   |
| Total                                                   |   | $                          | 3,599,328 |   |   | $ | 3,774,919 |   |   | $ | 3,250,732 |   |   | $ | 39,403,833 |   |   | $ | 50,028,812 |   |

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| · | Liabilities      under reinsurance arrangements. |
|--------|--------------------------------------------------|

| · | Liabilities      related to securities purchased but not yet  settled. |
|--------|------------------------------------------------------------------------|

| · | Liabilities      related to derivative obligations. |
|--------|-----------------------------------------------------|

| · | Liabilities      related to derivative counterpartycollateral |
|--------|---------------------------------------------------------------|

| · | Statutory      state escheat liabilities. |
|--------|-------------------------------------------|

| · | Expected      benefit payments to the Company’s defined benefit pension and      post-retirement medical plans through2019. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

| · | Unrecognized      tax benefits. |
|--------|---------------------------------|

7.11  Application of RecentAccounting Pronouncements

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Item7A.  Quantitative and Qualitative Disclosures About MarketRisk

| · | Market      risk - the potential of loss arising from adverse fluctuations in interest      rates and equity market    prices and the levels of      their volatility. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Insurance      risk - the potential of loss resulting from claims and expenses exceeding      liabilities held. |
|--------|-----------------------------------------------------------------------------------------------------------------|

| · | Credit      risk - the potential of loss arising from an obligator’s inability or      unwillingness to meet its obligations to the  Company. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Operational      and corporate risk - the potential of direct or indirect loss resulting      from inadequate or failed internal processes, people and systems or from      other external events. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | Financial      futures and financial forwards are commitments to either purchase or sell      designated financial instruments at a future date for a specified      price. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Interest      rate swaps involve the periodic exchange of cash flows with third parties      at specified intervals calculated using agreed upon rates or other      financial variables. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Interest      rate cap and floor contracts entitle the purchaser to receive from the      issuer at designated dates the amount by which a specified market rate      exceeds the cap strike interest rate or falls below the floor strike      interest rate. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Option      contracts grant the purchaser, in consideration for the payment of a      premium, the right to either purchase from or sell to the issuer a      financial instrument at a specified price within a specified time period      or on a stated date.  Interest rate swaptions grant the      purchaser the right to enter into a swap with predetermined fixed-rate      payments over a predetermined time period on the exercise      date. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                     |   |      |   |   |                                             |   |
|----------------------------------------------------------|--------|-----------|--------|--------|---------------------------------------------|--------|
| Projected      cash flows bycalendar years (In millions) |   | Benchmark |   |   | Interest      rateincrease      one percent |   |
| 2010                                                     |   | $         | 2,534  |   |                                        | $      | 2,433 |   |
| 2011                                                     |   |      | 2,297  |   |                                        |   | 2,217 |   |
| 2012                                                     |   |      | 2,248  |   |                                        |   | 2,207 |   |
| 2013                                                     |   |      | 2,421  |   |                                        |   | 2,342 |   |
| 2014                                                     |   |      | 2,139  |   |                                        |   | 2,138 |   |
| Thereafter                                               |   |      | 9,915  |   |                                        |   | 10,411 |   |
| Undiscounted      total                                  |   | $         | 21,554 |   |                                        | $      | 21,748 |   |
|                                                     |   |      |   |   |                                        |   |   |   |
| Fair      value                                          |   | $         | 16,993 |   |                                        | $      | 16,226 |   |

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Item 8.  Financial Statements and SupplementaryData

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|                                                                                                       |   | December      31, |       |
|------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|
|                                                                                                       |   | 2009              |       |   | 2008 |   |
| Assets                                                                                                     |   |              |       |   |   |   |
| Investments:                                                                                               |   |              |       |   |   |   |
| Fixed      maturities, available-for-sale, at fair value (amortized cost $14,117,799      and $13,394,675) |   | $                 | 13,917,813 |   |   | $ | 11,973,536 |   |
| Fixed      maturities, held for trading, at fair value (amortized cost $135,425 and      $39,803)          |   |              | 140,174    |   |   |   | 38,834 |   |
| Mortgage      loans on real estate (net of allowances of $14,854 and    $8,834)                            |   |              | 1,554,132  |   |   |   | 1,380,101 |   |
| Equity      investments, available-for-sale, at fair value (cost $18,860 and      $16,330)                 |   |              | 25,679     |   |   |   | 17,790 |   |
| Policy      loans                                                                                          |   |              | 3,971,833  |   |   |   | 3,979,094 |   |
| Short-term      investments, available-for-sale (cost approximates fair    value)                          |   |              | 488,480    |   |   |   | 366,370 |   |
| Limited      partnership and limited liability corporation interests                                       |   |              | 253,605    |   |   |   | 293,956 |   |
| Other      investments                                                                                     |   |              | 24,312     |   |   |   | 31,992 |   |
| Total      investments                                                                                     |   |              | 20,376,028 |   |   |   | 18,081,673 |   |
|                                                                                                       |   |              |       |   |   |   |   |   |
| Other      assets:                                                                                         |   |              |       |   |   |   |   |   |
| Cash                                                                                                       |   |              | 170,978    |   |   |   | 28,352 |   |
| Reinsurance      receivable                                                                                |   |              | 573,963    |   |   |   | 546,491 |   |
| Deferred      acquisition costs and value of business acquired                                             |   |              | 481,044    |   |   |   | 714,031 |   |
| Investment      income due and accrued                                                                     |   |              | 225,449    |   |   |   | 145,775 |   |
| Premiums      in course of collection                                                                      |   |              | 9,015      |   |   |   | 8,309 |   |
| Deferred      income taxes                                                                                 |   |              | 125,878    |   |   |   | 577,799 |   |
| Collateral      under securities lending agreements                                                        |   |              | 38,296     |   |   |   | 43,205 |   |
| Due      from parent and affiliates                                                                        |   |              | 196,697    |   |   |   | 41,793 |   |
| Goodwill                                                                                                   |   |              | 105,255    |   |   |   | 105,255 |   |
| Other      intangible assets                                                                               |   |              | 29,632     |   |   |   | 33,824 |   |
| Other      assets                                                                                          |   |              | 491,471    |   |   |   | 603,091 |   |
| Assets      of discontinued operations                                                                     |   |              | 87,719     |   |   |   | 124,089 |   |
| Separate      account assets                                                                               |   |              | 18,886,901 |   |   |   | 15,121,943 |   |
| Total      assets                                                                                          |   | $                 | 41,798,326 |   |   | $ | 36,175,630 |   |

| See      notes to consolidated financial statements. | (Continued) |
|------------------------------------------------------|-------------|

----

Table of Contents

|                                                                                                        |   | December      31, |       |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|
|                                                                                                        |   | 2009              |       |   | 2008 |   |
| Liabilities      and stockholder's equity                                                                   |   |              |       |   |   |   |
| Policy      benefit liabilities:                                                                            |   |              |       |   |   |   |
| Future      policy benefits                                                                                 |   | $                 | 18,972,560 |   |   | $ | 18,105,648 |   |
| Policy      and contract claims                                                                             |   |              | 286,176    |   |   |   | 290,288 |   |
| Policyholders'      funds                                                                                   |   |              | 358,795    |   |   |   | 320,320 |   |
| Provision      for policyholders' dividends                                                                 |   |              | 69,494     |   |   |   | 70,700 |   |
| Undistributed      earnings on participating business                                                       |   |              | 3,580      |   |   |   | 1,614 |   |
| Total      policy benefit liabilities                                                                       |   |              | 19,690,605 |   |   |   | 18,788,570 |   |
|                                                                                                        |   |              |       |   |   |   |   |   |
| General      liabilities:                                                                                   |   |              |       |   |   |   |   |   |
| Due      to parent and affiliates                                                                           |   |              | 537,563    |   |   |   | 533,870 |   |
| Repurchase      agreements                                                                                  |   |              | 491,338    |   |   |   | 202,079 |   |
| Commercial      paper                                                                                       |   |              | 97,613     |   |   |   | 97,167 |   |
| Payable      under securities lending agreements                                                            |   |              | 38,296     |   |   |   | 43,205 |   |
| Other      liabilities                                                                                      |   |              | 618,508    |   |   |   | 655,576 |   |
| Liabilities      of discontinued operations                                                                 |   |              | 87,719     |   |   |   | 124,089 |   |
| Separate      account liabilities                                                                           |   |              | 18,886,901 |   |   |   | 15,121,943 |   |
| Total      liabilities                                                                                      |   |              | 40,448,543 |   |   |   | 35,566,499 |   |
|                                                                                                        |   |              |       |   |   |   |   |   |
| Commitments and      contingencies (Note 20)                                                                |   |              |       |   |   |   |   |   |
|                                                                                                        |   |              |       |   |   |   |   |   |
| Stockholder's      equity:                                                                                  |   |              |       |   |   |   |   |   |
| Preferred      stock, $1 par value, 50,000,000 shares authorized; none issued and      outstanding          |   |              | -          |   |   |   | - |   |
| Common      stock, $1 par value, 50,000,000 shares authorized; 7,032,000 shares issued      and outstanding |   |              | 7,032      |   |   |   | 7,032 |   |
| Additional      paid-in capital                                                                             |   |              | 761,330    |   |   |   | 756,912 |   |
| Accumulated      other comprehensive income (loss)                                                          |   |              | (132,721   | ) |   |   | (762,673 | ) |
| Retained      earnings                                                                                      |   |              | 714,142    |   |   |   | 607,860 |   |
| Total      stockholder's equity                                                                             |   |              | 1,349,783  |   |   |   | 609,131 |   |
| Total      liabilities and stockholder's equity                                                             |   | $                 | 41,798,326 |   |   | $ | 36,175,630 |   |

| See      notes to consolidated financial statements. | (Concluded) |
|------------------------------------------------------|-------------|

----

Table of Contents

|                                                                                                                          |   | Year      Ended December 31, |      |
|-------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                                                                          |   | 2009                         |      |   | 2008 |   |   | 2007 |   |
| Revenues:                                                                                                                     |   |                         |      |   |   |   |   |   |   |
| Premium      income, net of premiums ceded of $48,761, $37,176 and      $1,432,360                                            |   | $                            | 560,252   |   |   | $ | 525,137 |   |   | $ | (857,267 | ) |
| Fee      income                                                                                                               |   |                         | 386,201   |   |   |   | 429,221 |   |   |   | 463,265 |   |
| Net      investment income                                                                                                    |   |                         | 1,149,084 |   |   |   | 1,078,469 |   |   |   | 1,139,541 |   |
| Realized      investment gains (losses), net:                                                                                 |   |                         |      |   |   |   |   |   |   |   |   |   |
| Total      other-than-temporary losses recognized                                                                             |   |                         | (112,764  | ) |   |   | (91,398 | ) |   |   | (34,874 | ) |
| Less:      Non-credit portion of other-than-temporary losses transferred to and      recognized in other comprehensive income |   |                         | 13,422    |   |   |   | - |   |   |   | - |   |
| Net      other-than-temporary losses recognized in earnings                                                                   |   |                         | (99,342   | ) |   |   | (91,398 | ) |   |   | (34,874 | ) |
| Other      realized investment gains, net                                                                                     |   |                         | 31,802    |   |   |   | 69,702 |   |   |   | 32,846 |   |
| Total      realized investment gains (losses), net                                                                            |   |                         | (67,540   | ) |   |   | (21,696 | ) |   |   | (2,028 | ) |
| Total      revenues                                                                                                           |   |                         | 2,027,997 |   |   |   | 2,011,131 |   |   |   | 743,511 |   |
| Benefits      and expenses:                                                                                                   |   |                         |      |   |   |   |   |   |   |   |   |   |
| Life      and other policy benefits, net of reinsurance recoveries of $47,077,      $42,380and $39,640                        |   |                         | 590,456   |   |   |   | 605,111 |   |   |   | 624,381 |   |
| Increase      (decrease) in future policy benefits                                                                            |   |                         | 109,728   |   |   |   | (38,354 | ) |   |   | (1,460,523 | ) |
| Interest      paid or credited to contractholders                                                                             |   |                         | 552,620   |   |   |   | 515,428 |   |   |   | 497,438 |   |
| Provision      (benefit) for policyholders' share of earnings on participating business      (Note 4)                         |   |                         | 1,245     |   |   |   | (206,415 | ) |   |   | 20,296 |   |
| Dividends      to policyholders                                                                                               |   |                         | 72,755    |   |   |   | 71,818 |   |   |   | 93,544 |   |
| Total      benefits                                                                                                           |   |                         | 1,326,804 |   |   |   | 947,588 |   |   |   | (224,864 | ) |
| General      insurance expenses                                                                                               |   |                         | 429,143   |   |   |   | 429,695 |   |   |   | 432,426 |   |
| Amortization      of deferred acquisition costs and value of business    acquired                                             |   |                         | 65,998    |   |   |   | 52,699 |   |   |   | 135,570 |   |
| Interest      expense                                                                                                         |   |                         | 37,508    |   |   |   | 39,804 |   |   |   | 41,713 |   |
| Total      benefits and expenses, net                                                                                         |   |                         | 1,859,453 |   |   |   | 1,469,786 |   |   |   | 384,845 |   |
| Income      from continuing operations before income taxes                                                                    |   |                         | 168,544   |   |   |   | 541,345 |   |   |   | 358,666 |   |
| Income      tax expense                                                                                                       |   |                         | 46,108    |   |   |   | 95,838 |   |   |   | 118,791 |   |
| Income      from continuing operations                                                                                        |   |                         | 122,436   |   |   |   | 445,507 |   |   |   | 239,875 |   |
| Income      from discontinued operations, net of income taxes of $ - , $388,836and      $85,707                               |   |                         | -         |   |   |   | 652,788 |   |   |   | 178,853 |   |
| Net      income                                                                                                               |   | $                            | 122,436   |   |   | $ | 1,098,295 |   |   | $ | 418,728 |   |

----

Table of Contents

|                                                                                                                                        |   |   |   |   |                    |   |    | Accumulated      Other           |   |   |                       |   |   |     |    |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|-------------------------|--------|---------|----------------------------------|--------|--------|----------------------------|--------|--------|----------|---------|
|                                                                                                                                        |   |   |   |   |                    |   |    | Comprehensive      Income (Loss) |   |   |                       |   |   |     |    |
|                                                                                                                                        |   | Common |   |   | Additional      Paid-in |   |    | Unrealized      Gains (Losses)   |   |   | Employee      Benefit Plan |   |   | Retained |    |   |   |   |
|                                                                                                                                        |   | Stock  |   |   | Capital                 |   |    | on      Securities               |   |   | Adjustments                |   |   | Earnings |    |   | Total |   |
| Balances,      January 1, 2007                                                                                                              |   | $      | 7,032  |   |                    | $      | 737,857 |                             |   | $      | (15,708                    | )      |   | $        | (30,829 | ) |   | $ | 1,474,517 |   |   | $ | 2,172,869 |   |
| Net      income                                                                                                                             |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   | 418,728 |   |   |   | 418,728 |   |
| Other      comprehensive income (loss), net of income taxes:                                                                                |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Net      change in unrealized gains                                                                                                         |   |   |   |   |                    |   |    |                             |   |   | 9,903                      |   |   |     |    |   |   |   |   |   |   |   | 9,903 |   |
| Employee      benefit plan adjustment                                                                                                       |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     | 34,998  |   |   |   |   |   |   |   | 34,998 |   |
| Total      comprehensive income                                                                                                             |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   |   |   |   |   | 463,629 |   |
| Impact      of adopting ASC section 815-15-25 "Derivatives and Hedging - Embedded      Derivatives - Recognition" to derivative instruments |   |   |   |   |                    |   |    |                             |   |   | 118                        |   |   |     |    |   |   |   | (3 | ) |   |   | 115 |   |
| Impact      of adopting ASC section 740-10-25 "Income                                                                                       |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Taxes      - Overall - Recognition" to accounting for income tax      uncertainties                                                         |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   | (6,195 | ) |   |   | (6,195 | ) |
| Dividends                                                                                                                                   |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   | (604,983 | ) |   |   | (604,983 | ) |
| Capital      contribution - stock-based compensation                                                                                        |   |   |   |   |                    |   | 3,816   |                             |   |   |                       |   |   |     |    |   |   |   |   |   |   |   | 3,816 |   |
| Income      tax benefit on stock-based compensation                                                                                         |   |   |   |   |                    |   | 5,860   |                             |   |   |                       |   |   |     |    |   |   |   |   |   |   |   | 5,860 |   |
| Balances,      December 31, 2007                                                                                                            |   |   | 7,032  |   |                    |   | 747,533 |                             |   |   | (5,687                     | )      |   |     | 4,169   |   |   |   | 1,282,064 |   |   |   | 2,035,111 |   |
| Net      income                                                                                                                             |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   | 1,098,295 |   |   |   | 1,098,295 |   |
| Other      comprehensive income (loss), net of income taxes:                                                                                |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Net      change in unrealized gains (losses)                                                                                                |   |   |   |   |                    |   |    |                             |   |   | (685,907                   | )      |   |     |    |   |   |   |   |   |   |   | (685,907 | ) |
| Employee      benefit plan adjustment                                                                                                       |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     | (75,248 | ) |   |   |   |   |   |   | (75,248 | ) |
| Total      comprehensive income                                                                                                             |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   |   |   |   |   | 337,140 |   |
| Impact      of adopting ASC section 715-20-65 "Defined                                                                                      |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Benefit      Plans" measurement date provisions                                                                                             |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   | (206 | ) |   |   | (206 | ) |
| Dividends                                                                                                                                   |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   | (1,772,293 | ) |   |   | (1,772,293 | ) |
| Capital      contribution - stock-based compensation                                                                                        |   |   |   |   |                    |   | 5,123   |                             |   |   |                       |   |   |     |    |   |   |   |   |   |   |   | 5,123 |   |
| Income      tax benefit on stock-based compensation                                                                                         |   |   |   |   |                    |   | 4,256   |                             |   |   |                       |   |   |     |    |   |   |   |   |   |   |   | 4,256 |   |
| Balances,      December 31, 2008                                                                                                            |   |   | 7,032  |   |                    |   | 756,912 |                             |   |   | (691,594                   | )      |   |     | (71,079 | ) |   |   | 607,860 |   |   |   | 609,131 |   |
| Net      income                                                                                                                             |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   | 122,436 |   |   |   | 122,436 |   |
| Other      comprehensive income (loss), net of income taxes:                                                                                |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Non-credit      component of impaired losses on fixed maturities      available-for-sale                                                    |   |   |   |   |                    |   |    |                             |   |   | (4,367                     | )      |   |     |    |   |   |   |   |   |   |   | (4,367 | ) |
| Net      change in unrealized gains (losses)                                                                                                |   |   |   |   |                    |   |    |                             |   |   | 614,379                    |   |   |     |    |   |   |   |   |   |   |   | 614,379 |   |
| Employee      benefit plan adjustment                                                                                                       |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     | 28,468  |   |   |   |   |   |   |   | 28,468 |   |
| Total      comprehensive income                                                                                                             |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   |   |   |   |   | 760,916 |   |
| Impact      of adopting ASC section 320-10-65 "Investments -                                                                                |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Debt      and Equity Securities" on available-for-sale securities, net of      tax                                                          |   |   |   |   |                    |   |    |                             |   |   | (8,528                     | )      |   |     |    |   |   |   | 8,528 |   |   |   | - |   |
| Dividends                                                                                                                                   |   |   |   |   |                    |   |    |                             |   |   |                       |   |   |     |    |   |   |   | (24,682 | ) |   |   | (24,682 | ) |
| Capital      contribution - stock-based compensation                                                                                        |   |   |   |   |                    |   | 2,181   |                             |   |   |                       |   |   |     |    |   |   |   |   |   |   |   | 2,181 |   |
| Income      tax benefit on stock-based compensation                                                                                         |   |   |   |   |                    |   | 2,237   |                             |   |   |                       |   |   |     |    |   |   |   |   |   |   |   | 2,237 |   |
| Balances,      December 31, 2009                                                                                                            |   | $      | 7,032  |   |                    | $      | 761,330 |                             |   | $      | (90,110                    | )      |   | $        | (42,611 | ) |   | $ | 714,142 |   |   | $ | 1,349,783 |   |

----

Table of Contents

|                                                                                                                  |   | Year      Ended December 31, |       |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|
|                                                                                                                  |   | 2009                         |       |   | 2008 |   |   | 2007 |   |
| Cash      flows from operating activities:                                                                            |   |                         |       |   |   |   |   |   |   |
| Net      income                                                                                                       |   | $                            | 122,436    |   |   | $ | 1,098,295 |   |   | $ | 418,728 |   |
| Adjustments      to reconcile net income to net cash provided by (used in) operating      activities:                 |   |                         |       |   |   |   |   |   |   |   |   |   |
| Earnings      allocated to participating policyholders                                                                |   |                         | 1,245      |   |   |   | (206,415 | ) |   |   | 20,296 |   |
| Amortization      of premiums / (accretion) of discounts on investments, net                                          |   |                         | (59,048    | ) |   |   | (55,161 | ) |   |   | (58,067 | ) |
| Net      realized (gains) losses on investments                                                                       |   |                         | 67,540     |   |   |   | 24,205 |   |   |   | (2,155 | ) |
| Net      purchases of trading securities                                                                              |   |                         | (97,474    | ) |   |   | (18,869 | ) |   |   | (20,825 | ) |
| Interest      credited to contractholders                                                                             |   |                         | 546,429    |   |   |   | 510,996 |   |   |   | 493,049 |   |
| Depreciation      and amortization                                                                                    |   |                         | 83,951     |   |   |   | 75,220 |   |   |   | 176,560 |   |
| Deferral      of acquisition costs                                                                                    |   |                         | (80,977    | ) |   |   | (65,108 | ) |   |   | (73,062 | ) |
| Deferred      income taxes                                                                                            |   |                         | 125,525    |   |   |   | 5,525 |   |   |   | (5,239 | ) |
| Income      from discontinued operations                                                                              |   |                         | -          |   |   |   | (681,528 | ) |   |   | - |   |
| Changes      in assets and liabilities:                                                                               |   |                         |       |   |   |   |   |   |   |   |   |   |
| Policy      benefit liabilities                                                                                       |   |                         | 59,227     |   |   |   | (325,306 | ) |   |   | (407,250 | ) |
| Reinsurance      receivable                                                                                           |   |                         | 8,898      |   |   |   | (158,532 | ) |   |   | (106,382 | ) |
| Accrued      interest and other receivables                                                                           |   |                         | (80,380    | ) |   |   | (8,388 | ) |   |   | 26,695 |   |
| Other,      net                                                                                                       |   |                         | (86,254    | ) |   |   | 138,089 |   |   |   | 46,513 |   |
| Net      cash provided by operating activities                                                                        |   |                         | 611,118    |   |   |   | 333,023 |   |   |   | 508,861 |   |
|                                                                                                                  |   |                         |       |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |                         |       |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |                         |       |   |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                                            |   |                         |       |   |   |   |   |   |   |   |   |   |
| Proceeds      from sales, maturities and redemptions of investments:                                                  |   |                         |       |   |   |   |   |   |   |
| Fixed      maturities available-for-sale                                                                              |   |                         | 3,625,569  |   |   |   | 4,056,869 |   |   |   | 4,052,791 |   |
| Mortgage      loans on real estate                                                                                    |   |                         | 96,258     |   |   |   | 112,760 |   |   |   | 159,959 |   |
| Equity      investments and other limited partnership interests                                                       |   |                         | 52,144     |   |   |   | 46,860 |   |   |   | 51,596 |   |
| Purchases      of investments:                                                                                        |   |                         |       |   |   |   |   |   |   |   |   |   |
| Fixed      maturities available-for-sale                                                                              |   |                         | (4,026,580 | ) |   |   | (3,742,716 | ) |   |   | (4,015,650 | ) |
| Mortgage      loans on real estate                                                                                    |   |                         | (282,252   | ) |   |   | (297,715 | ) |   |   | (228,746 | ) |
| Equity      investments and other limited partnership interests                                                       |   |                         | (14,316    | ) |   |   | (13,421 | ) |   |   | (35,372 | ) |
| Acquisitions,      net of cash acquired                                                                               |   |                         | -          |   |   |   | - |   |   |   | (15,208 | ) |
| Net      change in short-term investments                                                                             |   |                         | (400,781   | ) |   |   | 81,143 |   |   |   | 1,132,840 |   |
| Net      change in repurchase agreements                                                                              |   |                         | 289,259    |   |   |   | 63,542 |   |   |   | (625,242 | ) |
| Other,      net                                                                                                       |   |                         | 101,734    |   |   |   | (98,662 | ) |   |   | (36,643 | ) |
| Proceeds      from the disposition of Healthcare segment, net of cash disposed, direct      expenses and income taxes |   |                         | -          |   |   |   | 846,759 |   |   |   | - |   |
| Net      cash provided by (used in) investing activities                                                              |   |                         | (558,965   | ) |   |   | 1,055,419 |   |   |   | 440,325 |   |

| See      notes to consolidated financial statements. | (Continued) |
|------------------------------------------------------|-------------|

----

Table of Contents

|                                                                                              |   | Year      Ended December 31, |       |   |   |   |
|---------------------------------------------------------------------------------------------------|--------|------------------------------|------------|--------|--------|--------|
|                                                                                              |   | 2009                         |       |   | 2008   |   |   | 2007 |   |
| Cash      flows from financing activities:                                                        |   |                         |       |   |   |   |   |   |   |
| Contract      deposits                                                                            |   | $                            | 1,921,471  |   |   | $      | 1,921,238 |   |   | $ | 1,228,154 |   |
| Contract      withdrawals                                                                         |   |                         | (1,660,454 | )      |   |   | (1,465,420 | ) |   |   | (1,491,994 | ) |
| Change      in due to parent and affiliates                                                       |   |                         | (168,402   | )      |   |   | (6,389 | ) |   |   | (31,483 | ) |
| Dividends      paid                                                                               |   |                         | (24,682    | )      |   |   | (1,772,293 | ) |   |   | (604,983 | ) |
| Net      commercial paper borrowings                                                              |   |                         | 446        |   |   |   | 1,500 |   |   |   | 647 |   |
| Change      in bank overdrafts                                                                    |   |                         | 19,857     |   |   |   | (108,418 | ) |   |   | (23,523 | ) |
| Income      tax benefit of stock option exercises                                                 |   |                         | 2,237      |   |   |   | 4,256 |   |   |   | 5,860 |   |
| Net      cash used in financing activities                                                        |   |                         | 90,473     |   |   |   | (1,425,526 | ) |   |   | (917,322 | ) |
|                                                                                              |   |                         |       |   |   |   |   |   |   |   |   |   |
| Net      increase (decrease) in cash                                                              |   |                         | 142,626    |   |   |   | (37,084 | ) |   |   | 31,864 |   |
| Cash,      continuing and discontinued operations, beginning of year                              |   |                         | 28,352     |   |   |   | 65,436 |   |   |   | 33,572 |   |
| Cash,      continuing and discontinued operations, end of year                                    |   |                         | 170,978    |   |   |   | 28,352 |   |   |   | 65,436 |   |
| Less      cash, discontinued operations, end of year                                              |   |                         | -          |   |   |   | - |   |   |   | (10,622 | ) |
| Cash,      end of year                                                                            |   | $                            | 170,978    |   |   | $      | 28,352 |   |   | $ | 54,814 |   |
|                                                                                              |   |                         |       |   |   |   |   |   |   |   |   |   |
|                                                                                              |   |                         |       |   |   |   |   |   |   |   |   |   |
|                                                                                              |   |                         |       |   |   |   |   |   |   |   |   |   |
| Supplemental      disclosures of cash flow information:                                           |   |                         |       |   |   |   |   |   |   |   |   |   |
| Net      cash paid (received) during the year for:                                                |   |                         |       |   |   |   |   |   |   |   |   |   |
| Income      taxes                                                                                 |   | $                            | (44,878    | )      |   | $      | 390,897 |   |   | $ | 121,847 |   |
| Income      tax payments withheld and remitted to taxing authorities                              |   |                         | 55,055     |   |   |   | 56,637 |   |   |   | 53,264 |   |
| Interest                                                                                          |   |                         | 37,508     |   |   |   | 39,804 |   |   |   | 41,713 |   |
|                                                                                              |   |                         |       |   |   |   |   |   |   |   |   |   |
| Non-cash      investing and financing transactions during the years:                              |   |                         |       |   |   |   |   |   |   |
| Share-based      compensation expense                                                             |   | $                            | 2,181      |   |   | $      | 5,123 |   |   | $ | 3,816 |   |
| Return      of invested reinsurnace assets to The Canada Life Assurance Company (See      Note 5) |   |                         | -          |   |   |   | - |   |   |   | 1,608,909 |   |
| Fair      value of assets acquired in settlement of fixed maturity      investments               |   |                         | -          |   |   |   | 6,388 |   |   |   | - |   |

| See      notes to consolidated financial statements. | (Concluded) |
|------------------------------------------------------|-------------|

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| 1.  Organization,      Basis of Presentation and Significant Accounting  Policies |
|---------------------------------------------------------------------------------------------|

| 1. | The      Company classifies the majority of its fixed maturity and all of its      equity investments as available-for-sale and records them at fair value      with the related net unrealized gain or loss, net of policyholder      related amounts and deferred taxes, in accumulated other      comprehensive income (loss) in the stockholder’s equity section of the      consolidated balance sheets. Net unrealized gains and losses related to      participating contract policies that cannot be distributed are recorded as      undistributed earnings on participating business in the Company’s      consolidated balance sheets.  The Company recognizes the      acquisition of its fixed maturity and equity investments on a trade date      basis. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 2. | Mortgage      loans on real estate are commercial loans and are carried at their unpaid      balances adjusted for any unamortized premiums or discounts and allowances      for credit losses.  Interest income is accrued on the unpaid      principal balance.  Discounts and premiums are amortized to net      investment income using the scientific interest method.  Accrual      of interest is discontinued on any impaired loans where collection of      interest is doubtful. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Equity      investments classified as available-for-sale are carried at fair value      with net unrealized gains and losses, net of deferred taxes, reported as      accumulated other comprehensive income (loss) in the stockholder’s equity      section of the Company’s consolidated balance sheets.  The      Company uses the equity method of accounting for investments in which it      has more than a minor interest and has influence in the entity’s operating      and financial policies, but does not have a controlling      interest.  Realized gains and losses are included in net      realized gains (losses) on investments. Declines in value, determined to      be other-than-temporary, are included in total other-than-temporary      impairment losses recognized. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  4. | Limited      partnership interests are accounted for using the cost method of      accounting.  The Company uses this method since it has a minor      equity interest and virtually no influence over the entity’s      operations.  Also included in limited partnership interests are      limited partnerships established for the purpose of investing in      low-income housing that qualify for federal and state tax      credits.  These securities are carried at amortized cost as      determined using the effective yieldmethod. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Policy      loans are carried at their unpaidbalances. |
|----|--------------------------------------------------------|

| 6. | Short-term      investments include securities purchased with initial maturities of one      year or less and are carried at amortized cost, which approximates fair      value.  The Company classifies its short-term investments as      available-for-sale. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Gains      and losses realized on disposal of investments are determined on a      specific identification basis.  See item 10 below for a      description of realization of other-than-temporary      impairments. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | The      Company may employ a trading strategy that involves the sale of securities      with a simultaneous agreement to repurchase similar securities at a future      date at an agreed-upon price.  Proceeds of the sale are      reinvested in other securities and may enhance the current yield and total      return.  The difference between the sales price and the future      repurchase price is recorded as an adjustment to net investment      income.  During the period between the sale and repurchase, the      Company will not be entitled to receive interest and principal payments on      the securities sold.  Losses may arise from changes in the value      of the securities or if the counterparty enters bankruptcy proceedings or      becomes insolvent.  In such cases, the Company’s right to      repurchase the security may be restricted.  Amounts owed to      brokers under these arrangements are included in repurchase agreements in      the accompanying consolidated balance sheets. The liability is      collateralized by securities with approximately the same fair      value. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | The      Company receives collateral for lending securities that are held as part      of its investment portfolio.  The Company requires collateral in      an amount greater than or equal to 102% of the market value of domestic      securities loaned and 105% of foreign securities loaned.  Such      collateral is used to replace the securities loaned in event of default by      the borrower.  The Company’s securities lending transactions are      accounted for as collateralized borrowings.  Collateral is      defined as government securities, letters of credit and/or cash      collateral.  The borrower can return and the Company can request      the loaned securities at any time.  The Company maintains      ownership of the loaned securities at all times and is entitled to receive      from the borrower any payments for interest or dividends received on such      securities during the loan term. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 10. | One      of the significant estimates inherent in the valuation of investments is      the evaluation of investments for other-than-temporary      impairments.  The evaluation of impairments is a quantitative      and qualitative process, which is subject to risks and uncertainties and      is intended to determine whether declines in the fair value of investments      should be recognized in current period earnings.  The risks and      uncertainties include changes in general economic conditions, the issuer’s      financial condition or near term recovery prospects, the effects of      changes in interest rates or credit spreads and the recovery      period.  The Company’s accounting policy requires that a decline      in the value of a security below its cost or amortized cost basis be      assessed to determine if the decline is      other-than-temporary.  If management either (a) has the intent      to sell the fixed maturity investment or (b) it is more likely than not      the Company will be required to sell the fixed maturity investment before      its anticipated recovery, a charge is recorded in net realized losses on      investments equal to the difference between the fair value and cost or      amortized cost basis of the security.  If management does not      intend to sell the security and it is not more likely than not the Company      will be required to sell the fixed maturity investment before recovery of      its amortized cost basis, but the present value of the cash flows expected      to be collected (discounted at the effective interest rate implicit in the      fixed maturity investment prior to impairment) is less than the amortized      cost basis of the fixed maturity investment (referred to as the credit      loss portion), an other-than-temporary impairment is considered to have      occurred.  In this instance, total other-than-temporary      impairment is bifurcated into two components: the amount related to the      credit loss, which is recognized in earnings; and the amount attributed to      other factors (referred to as the non-credit portion), which is recognized      as a separate component in accumulated other comprehensive income      (loss).  After the recognition of an other-than-temporary      impairment, the fixed maturity investment is accounted for as if it had      been purchased on the measurement date of the other-than-temporary      impairment, with an amortized cost basis equal to the previous amortized      cost basis less the other-than-temporary impairment recognized in      earnings. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                            |   | December      31, |   |
|---------------------------------|--------|-------------------|--------|
| Assets                          |   | 2009              |   |   | 2008 |   |
| Reinsurance      receivable     |   | $                 | 87,719 |   |   | $ | 124,089 |   |
| Total      assets               |   | $                 | 87,719 |   |   | $ | 124,089 |   |
|                            |   |              |   |   |   |   |   |   |
| Liabilities                     |   |              |   |   |   |   |   |   |
| Future      policy benefits     |   | $                 | 56,219 |   |   | $ | 39,776 |   |
| Policy      and contract claims |   |              | 31,500 |   |   |   | 84,313 |   |
| Total      liabilities          |   | $                 | 87,719 |   |   | $ | 124,089 |   |

|                                                                                                                   |   | Year      Ended December 31, |   |
|------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                                                                   |   | 2009                         |   |   | 2008 |   |   | 2007 |   |
| Revenues      from discontinued operations                                                                             |   | $                            | -      |   |   | $ | 317,658 |   |   | $ | 1,343,961 |   |
| Benefits      and expenses from discontinued operations                                                                |   |                         | -      |   |   |   | 346,398 |   |   |   | 1,165,108 |   |
| Income      (loss) from discontinued operations, net of income tax expense (benefit) $      - , ($19,258), and $85,707 |   |                         | -      |   |   |   | (28,740 | ) |   |   | 178,853 |   |
| Gain      on sale of discontinued operations, net of income taxes of $ - , $408,094      and $ -                       |   |                         | -      |   |   |   | 681,528 |   |   |   | - |   |
| Income      from discontinued operations                                                                               |   | $                            | -      |   |   | $ | 652,788 |   |   | $ | 178,853 |   |

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|                                        |   | Severance,      retention and other employee related costs |    |
|---------------------------------------------|--------|------------------------------------------------------------|---------|
| Balance,      April 1, 2008                 |   | $                                                          | -       |   |
| Amount      incurred                        |   |                                                       | 49,202  |   |
| Adjustments      to original estimates, net |   |                                                       | (6,268  | ) |
| Cash      payments and other settlements    |   |                                                       | (30,222 | ) |
| Balance,      December 31, 2008             |   |                                                       | 12,712  |   |
| Cash      payments and other settlements    |   |                                                       | (13,283 | ) |
| Other      adjustments                      |   |                                                       | 1,726   |   |
| Balance,      December 31, 2009             |   | $                                                          | 1,155   |   |

| 5.  Related      Party Transactions |
|-----------------------------------------------|

|                        |   | December 31, |      |
|-----------------------------|--------|--------------|-----------|
|                        |   | 2009         |      |   | 2008 |   |
| Reinsurance      receivable |   | $            | 452,510   |   |   | $ | 425,369 |   |
| Future      policy benefits |   |         | 2,293,712 |   |   |   | 2,393,013 |   |

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|                                                                                               |   | Year      Ended December 31, |    |
|----------------------------------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                                               |   | 2009                         |    |   | 2008 |   |   | 2007 |   |
| Premium      income, net of related party premiums ceded of $3,411, $3,662,and      $1,391,518     |   | $                            | 137,085 |   |   | $ | 155,752 |   |   | $ | (1,146,908 | ) |
| Life      and other policy benefits, net of reinsurance recoveries of $7,415, $7,356      and $737 |   |                         | 118,624 |   |   |   | 120,999 |   |   |   | 103,765 |   |
| Increase      (decrease) in future policy benefits                                                 |   |                         | (45,960 | ) |   |   | (42,180 | ) |   |   | (1,539,777 | ) |

|                                                                                                                  |   | Year      Ended December 31, |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                                                                  |   | 2009                         |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                  |   |                         |   |   |   |   |   |   |   |
| Investment      management revenue included in fee income and net investment      income                              |   | $                            | 7,334  |   |   | $ | 7,856 |   |   | $ | 7,959 |   |
| Administrative      and underwriting expense reimbursements included as a reduction to general      insurance expense |   |                         | 944    |   |   |   | 1,092 |   |   |   | 1,255 |   |
| Total                                                                                                                 |   | $                            | 8,278  |   |   | $ | 8,948 |   |   | $ | 9,214 |   |

|                                         |   |   |            |   |   |           |   |   | December      31, |    |
|----------------------------------------------|--------|--------|-----------------|--------|--------|----------------|--------|--------|-------------------|---------|
| Related      party                           |   |   | Indebtedness    |   |   | Due      Date  |   |   | 2009              |    |   | 2008 |   |
| GWL&A      Financial Inc.                |   |   | On      account |   |   | On      demand |   |   | $                 | 17,248  |   |   | $ | 37,097 |   |
| Great-West      Lifeco U.S. Inc.             |   |   | On      account |   |   | On      demand |   |   |              | 177,716 |   |   |   | - |   |
| Great-West      Lifeco Finance LP            |   |   | On      account |   |   | On      demand |   |   |              | 598     |   |   |   | - |   |
| Great-West      Life & Annuity Insurance |   |   |            |   |   |           |   |   |              |    |   |   |   |   |   |
| Capital      (Nova Scotia) Co.               |   |   | On      account |   |   | On      demand |   |   |              | 142     |   |   |   | 716 |   |
| Great-West      Life & Annuity Insurance |   |   |            |   |   |           |   |   |              |    |   |   |   |   |   |
| Capital      (Nova Scotia) Co. II            |   |   | On      account |   |   | On      demand |   |   |              | 237     |   |   |   | 2,079 |   |
| Putnam      Investments LLC                  |   |   | On      account |   |   | On      demand |   |   |              | 125     |   |   |   | 207 |   |
| The      Great-West Life Assurance Company   |   |   | On      account |   |   | On      demand |   |   |              | -       |   |   |   | 1,694 |   |
| The      Crown Life Insurance Company        |   |   | On      account |   |   | On      demand |   |   |              | 491     |   |   |   | - |   |
| Other      related party receivables         |   |   | On      account |   |   | On      demand |   |   |              | 140     |   |   |   | - |   |
| Total                                        |   |   |            |   |   |           |   |   | $                 | 196,697 |   |   | $ | 41,793 |   |

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|                                       |   |   |               |   |   |               |   |   | December      31, |    |
|--------------------------------------------|--------|--------|--------------------|--------|--------|--------------------|--------|--------|-------------------|---------|
| Related      party                         |   |   | Indebtedness       |   |   | Due      Date      |   |   | 2009              |    |   | 2008 |   |
| GWL&A      Financial Inc. 1            |   |   | Surplus      note  |   |   | November      2034 |   |   | $                 | 194,218 |   |   | $ | 194,206 |   |
| GWL&A      Financial Inc. 2            |   |   | Surplus      note  |   |   | May      2046      |   |   |              | 333,400 |   |   |   | 333,400 |   |
| GWL&A      Financial Inc.              |   |   | Note      interest |   |   | May      2010      |   |   |              | 4,701   |   |   |   | 4,701 |   |
| Great-West      Lifeco Finance LP II       |   |   | On      account    |   |   | On      demand     |   |   |              | 2,223   |   |   |   | - |   |
| The      Great-West Life Assurance Company |   |   | On      account    |   |   | On      demand     |   |   |              | 1,352   |   |   |   | - |   |
| The      Canada Life Assurance Company     |   |   | On      account    |   |   | On      demand     |   |   |              | 1,669   |   |   |   | 1,563 |   |
| Total                                      |   |   |               |   |   |               |   |   | $                 | 537,563 |   |   | $ | 533,870 |   |

| Premium      income                                                               |   | $      | (1,387,179 | )      |
|-----------------------------------------------------------------------------------|--------|--------|------------|--------|
| Net      investment income                                                        |   |   | 58,569     |   |
| Net      realized losses on investments                                           |   |   | (14,797    | )      |
| Total      revenues                                                               |   |   | (1,343,407 | )      |
| Decrease      in reserves                                                         |   |   | (1,453,145 | )      |
| Provision      for policyholders' share of earnings on participating    business  |   |   | 8,161      |   |
| Amortization      of deferred acquisition costs and value of business    acquired |   |   | 62,961     |   |
| Total      benefits and expenses                                                  |   |   | (1,382,023 | )      |
| Income      before income taxes                                                   |   |   | 38,616     |   |
| Income      taxes                                                                 |   |   | 16,372     |   |
| Net      income                                                                   |   | $      | 22,244     |   |

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|                                                      |   | December      31, 2009 |       |
|-----------------------------------------------------------|--------|------------------------|------------|
| Fixed      maturities:                                    |   | Amortized      cost    |       |   | Gross      unrealized gains |   |   | Gross unrealized      losses |   |   | Estimated      fair value and carrying value |   |   | OTTI      included in AOCI |   |
| U.S.      government direct obligations and U.S. agencies |   | $                      | 1,972,541  |   |   | $ | 77,068 |   |   | $ | 10,815 |   |   | $ | 2,038,794 |   |   | $ | - |   |
| Obligations      of U.S. states and their subdivisions    |   |                   | 1,247,854  |   |   |   | 120,211 |   |   |   | 4,214 |   |   |   | 1,363,851 |   |   |   | - |   |
| Foreign      governments                                  |   |                   | 461        |   |   |   | 4 |   |   |   | - |   |   |   | 465 |   |   |   | - |   |
| Corporate      debt securities                            |   |                   | 7,030,032  |   |   |   | 316,599 |   |   |   | 216,886 |   |   |   | 7,129,745 |   |   |   | 10,049 |   |
| Asset-backed      securities                              |   |                   | 2,268,789  |   |   |   | 3,221 |   |   |   | 383,965 |   |   |   | 1,888,045 |   |   |   | 13,422 |   |
|                                                      |   |                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential      mortgage-backed securities               |   |                   | 842,427    |   |   |   | 4,533 |   |   |   | 75,897 |   |   |   | 771,063 |   |   |   | - |   |
| Commercial      mortgage-backed securities                |   |                   | 703,864    |   |   |   | 8,058 |   |   |   | 35,792 |   |   |   | 676,130 |   |   |   | - |   |
| Collateralized      debt obligations                      |   |                   | 51,831     |   |   |   | 332 |   |   |   | 2,443 |   |   |   | 49,720 |   |   |   | - |   |
| Total      fixed maturities                               |   | $                      | 14,117,799 |   |   | $ | 530,026 |   |   | $ | 730,012 |   |   | $ | 13,917,813 |   |   | $ | 23,471 |   |
|                                                      |   |                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      investments:                                  |   |                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer      products                                    |   | $                      | 4          |   |   | $ | 66 |   |   | $ | 2 |   |   | $ | 68 |   |   | $ | - |   |
| Equity      mutual funds                                  |   |                   | 15,695     |   |   |   | 5,537 |   |   |   | 450 |   |   |   | 20,782 |   |   |   | - |   |
| Airline      industry                                     |   |                   | 3,161      |   |   |   | 1,673 |   |   |   | 5 |   |   |   | 4,829 |   |   |   | - |   |
| Total      equity investments                             |   | $                      | 18,860     |   |   | $ | 7,276 |   |   | $ | 457 |   |   | $ | 25,679 |   |   | $ | - |   |

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|                                                      |   | December      31, 2008 |       |
|-----------------------------------------------------------|--------|------------------------|------------|
| Fixed      Maturities:                                    |   | Amortized      cost    |       |   | Gross      unrealized gains |   |   | Gross      unrealized losses |   |   | Estimated      fair value and carrying value |   |
| U.S.      government direct obligations and U.S. agencies |   | $                      | 2,356,143  |   |   | $ | 81,084 |   |   | $ | 6,601 |   |   | $ | 2,430,626 |   |
| Obligations      of U.S. states and their subdivisions    |   |                   | 1,173,185  |   |   |   | 10,026 |   |   |   | 34,443 |   |   |   | 1,148,768 |   |
| Foreign      governments                                  |   |                   | 1,140      |   |   |   | 12 |   |   |   | - |   |   |   | 1,152 |   |
| Corporate      debt securities                            |   |                   | 5,589,524  |   |   |   | 51,728 |   |   |   | 615,647 |   |   |   | 5,025,605 |   |
| Asset-backed      securities                              |   |                   | 2,521,704  |   |   |   | 960 |   |   |   | 667,006 |   |   |   | 1,855,658 |   |
| Residential      mortgage-backed securities               |   |                   | 883,250    |   |   |   | 5,114 |   |   |   | 127,042 |   |   |   | 761,322 |   |
| Commercial      mortgage-backed securities                |   |                   | 792,083    |   |   |   | 109 |   |   |   | 110,919 |   |   |   | 681,273 |   |
| Collateralized      debt obligations                      |   |                   | 77,646     |   |   |   | - |   |   |   | 8,514 |   |   |   | 69,132 |   |
| Total      fixed maturities                               |   | $                      | 13,394,675 |   |   | $ | 149,033 |   |   | $ | 1,570,172 |   |   | $ | 11,973,536 |   |
|                                                      |   |                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      investments:                                  |   |                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer      products                                    |   | $                      | 4          |   |   | $ | 52 |   |   | $ | 2 |   |   | $ | 54 |   |
| Equity      mutual funds                                  |   |                   | 14,563     |   |   |   | 2,161 |   |   |   | 962 |   |   |   | 15,762 |   |
| Airline      industry                                     |   |                   | 1,763      |   |   |   | 211 |   |   |   | - |   |   |   | 1,974 |   |
| Total      equity investments                             |   | $                      | 16,330     |   |   | $ | 2,424 |   |   | $ | 964 |   |   | $ | 17,790 |   |

|                                             |   | December      31, 2009 |       |
|--------------------------------------------------|--------|------------------------|------------|
|                                             |   | Amortized      cost    |       |   | Estimated      fair value |   |
| Maturing      in one year or less                |   | $                      | 608,935    |   |   | $ | 635,230 |   |
| Maturing      after one year through five years  |   |                   | 2,790,982  |   |   |   | 2,950,213 |   |
| Maturing      after five years through ten years |   |                   | 2,759,990  |   |   |   | 2,926,744 |   |
| Maturing      after ten years                    |   |                   | 2,317,073  |   |   |   | 2,185,437 |   |
| Mortgage-backed      and asset-backed securities |   |                   | 5,640,819  |   |   |   | 5,220,189 |   |
|                                             |   | $                      | 14,117,799 |   |   | $ | 13,917,813 |   |

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|                                             |   | Year      Ended December 31, |      |
|--------------------------------------------------|--------|------------------------------|-----------|
|                                             |   | 2009                         |      |   | 2008 |   |   | 2007 |   |
| Proceeds      from sales                         |   | $                            | 2,258,653 |   |   | $ | 2,696,635 |   |   | $ | 2,488,042 |   |
| Gross      realized investment gains from sales  |   |                         | 42,375    |   |   |   | 50,173 |   |   |   | 30,834 |   |
| Gross      realized investment losses from sales |   |                         | (267      | ) |   |   | (1,456 | ) |   |   | (4,309 | ) |

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Table of Contents

|                            |   | December      31, 2009 |
|---------------------------------|--------|------------------------|
|                            |   | Notional      amount   |   |   | Number      of contracts |   |   | Strike/Swap      rate |   | Maturity |
| Interest      rate swaps        |   | $                      | 156,500 |   |   |   | 13 |   |   |   | 0.19%-0.43 | % | February      2012- |
|                            |   |                   |   |   |   |   |   |   |   |   |   |   | February      2045 |
|                            |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      currency contracts |   |                   | 30,000 |   |   |   | 1 |   |   |   | N/A |   | December      2016 |
|                            |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Futures:                        |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Thirty      year U.S. Treasury: |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Short      position             |   |                   | 83,100 |   |   |   | 831 |   |   |   | N/A |   | March      2010 |
| Ten      year U.S. Treasury:    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Short      position             |   |                   | 54,400 |   |   |   | 544 |   |   |   | N/A |   | March      2010 |
| Five      year U.S. Treasury:   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Short      position             |   |                   | 27,700 |   |   |   | 277 |   |   |   | N/A |   | March      2010 |
|                            |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      rate swaptions    |   |                   | 1,140,000 |   |   |   | 60 |   |   |   | 9.90%-10.10 | % | November      2010- |
|                            |   |                   |   |   |   |   |   |   |   |   |   |   | September      2015 |

|                                     |   | December 31, 2008 |
|------------------------------------------|--------|-------------------|
|                                     |   | Notional Amount   |   |   | Strike/Swap Rate |   | Maturity |
| Interest      rate swaps                 |   | $                 | 325,966 |   |   |   | 0.44%-1.75 | % | March      2009- |
|                                     |   |              |   |   |   |   |   |   | February      2045 |
|                                     |   |              |   |   |   |   |   |   |   |
| Foreign      currency exchange contracts |   |              | 52,001 |   |   |   | N/A |   | March      2014- |
|                                     |   |              |   |   |   |   |   |   | December      2016 |
| Futures:                                 |   |              |   |   |   |   |   |   |   |
| Thirty      year U.S Treasury:           |   |              |   |   |   |   |   |   |   |
| Short      position                      |   |              | 40,500 |   |   |   | N/A |   | March      2009 |

|                                                |   | Asset derivatives |   |   | Liability derivatives  |   |
|-----------------------------------------------------|--------|-------------------|--------|--------|------------------------|--------|
|                                                |   | December 31, 2009 |   |   | December 31, 2009      |   |
|                                                |   | Fair value        |   |   | Balance sheet location |   |   | Fair value |   |   | Balance sheet location |   |
| Derivatives      designated as hedging instruments: |   |              |   |   |                   |   |   |   |   |   |   |   |
| Interest      rate swaps                            |   | $                 | 14,690 |   |                   |   | (A) |   |   | $ | - |   |   |   |   |
| Foreign      currency exchange contracts            |   |              | -      |   |                   |   |   |   |   |   | 3,317 |   |   |   | (B) |   |
| Total                                               |   | $                 | 14,690 |   |                   |   |   |   |   | $ | 3,317 |   |   |   |   |   |

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|                                                    |   | Asset      derivatives |   |   | Liability      derivatives |   |
|---------------------------------------------------------|--------|------------------------|--------|--------|----------------------------|--------|
|                                                    |   | December      31, 2009 |   |   | December      31, 2009     |   |
|                                                    |   |                   |   |   | Balance      sheet         |   |   |   |   |   | Balance      sheet |   |
|                                                    |   | Fair      value        |   |   | location                   |   |   | Fair      value |   |   | location |   |
| Derivatives      not designated as hedging instruments: |   |                   |   |   |                       |   |   |   |   |   |   |   |
| Interest      rate swaptions                            |   | $                      | 8,460  |   |                       |   | (A) |   |   | $ | - |   |   |   |   |   |
|                                                    |   | $                      | 8,460  |   |                       |   |   |   |   | $ | - |   |   |   |   |   |
| Total                                                   |   |                   |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |

|                                     |   |                                                                       |    |   |                                                                             |   |   |                                                                                                                               |   |
|------------------------------------------|--------|----------------------------------------------------------------------------|---------|--------|-----------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|
|                                     |   | Gain      (loss) recognized in AOCI on derivatives(Effective      portion) |    |   | Gain      (loss) reclassified fromAOCI into income (Effective      portion) |   |   | Gain      (loss) recognized in income on derivatives (Ineffective portion and amount      excludedfrom effectiveness testing) |   |
|                                     |   | Year      endedDecember 31, 2009                                           |    |   | Year      endedDecember 31, 2009                                            |   |   | Income      statementlocation                                                                                                 |   |   | Year      endedDecember 31, 2009 |   |   | Income      statement location |   |
| Cash      flow hedges:                   |   |                                                                       |    |   |                                                                        |   |   |                                                                                                                          |   |   |   |   |   |   |   |
| Interest      rate swaps                 |   | $                                                                          | (52,350 | )      |                                                                        | $      | 553    |                                                                                                                          |   |   | (A) |   |   | $ | 6 |   |   |   | (A) |   |
| Foreign      currency exchange contracts |   |                                                                       | (5,334  | )      |                                                                        |   | -      |                                                                                                                          |   |   |   |   |   |   | - |   |   |   |   |   |
| Interest      rate futures               |   |                                                                       | 466     |   |                                                                        |   | 53     |                                                                                                                          |   |   | (A) |   |   |   | - |   |   |   |   |   |
| Total                                    |   | $                                                                          | (57,218 | )      |                                                                        | $      | 606    |                                                                                                                          |   |   |   |   |   | $ | 6 |   |   |   |   |   |

|                                       |   | Gain      (loss) recognized in net income on derivatives |   |   | Gain      (loss) recognized in net income on hedged assets |   |
|--------------------------------------------|--------|----------------------------------------------------------|--------|--------|------------------------------------------------------------|--------|
|                                       |   | Year      endedDecember 31, 2009                         |   |   | Income      statementlocation                              |   |   | Year      endedDecember 31, 2009 |   |   | Income      statementlocation |   |
| Fair      value hedges:                    |   |                                                     |   |   |                                                       |   |   |   |   |   |   |   |
| Interest      rate futures                 |   | $                                                        | 6,030  |   |                                                       |   | (A) |   |   | $ | - |   |   |   |   |
| Interest      rate futures                 |   |                                                     | (1,124 | )      |                                                       |   | (B) |   |   |   | - |   |   |   |   |
| Items      hedged in interest rate futures |   |                                                     | -      |   |                                                       |   |   |   |   |   | (4,691 | ) |   |   | (A) |   |
| Total                                      |   | $                                                        | 4,906  |   |                                                       |   |   |   |   | $ | (4,691 | ) |   |   |   |   |

|                                                   |   | Gain      (loss) recognized in   |   |   | Gain      (loss) recognized in   |   |
|--------------------------------------------------------|--------|----------------------------------|--------|--------|----------------------------------|--------|
|                                                   |   | net      income on derivatives   |   |   | net      income on hedged assets |   |
|                                                   |   | Year      endedDecember 31, 2009 |   |   | Income      statementlocation    |   |   | Year      endedDecember 31, 2009 |   |   | Income      statementlocation |   |
| Derivatives      not designated as hedging instruments |   |                             |   |   |                             |   |   |   |   |   |   |   |
| Interest      rate futures                             |   | $                                | 3,714  |   |                             |   | (A) |   |   | $ | - |   |   |   |   |   |
| Interest      rate futures                             |   |                             | (2,781 | )      |                             |   | (B) |   |   |   | - |   |   |   |   |   |
| Interest      rate swaptions                           |   |                             | (3,560 | )      |                             |   | (A) |   |   |   | - |   |   |   |   |   |
| Total                                                  |   | $                                | (2,627 | )      |                             |   |   |   |   | $ | - |   |   |   |   |   |

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|                       |   | Year      Ended December 31, |   |
|----------------------------|--------|------------------------------|--------|
|                       |   | 2009                         |   |   | 2008 |   |   | 2007 |   |
| Balance,      January 1    |   | $                            | 8,834  |   |   | $ | 9,448 |   |   | $ | 15,661 |   |
| Release      of provision  |   |                         | (152   | ) |   |   | (614 | ) |   |   | (6,213 | ) |
| Increase      of provision |   |                         | 6,172  |   |   |   | - |   |   |   | - |   |
| Balance,      December 31  |   | $                            | 14,854 |   |   | $ | 8,834 |   |   | $ | 9,448 |   |

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| · | Fair      value is below cost. |
|--------|--------------------------------|

| · | The      decline in fair value is attributable to specific adverse conditions      affecting a particular instrument, its issuer, an industry or geographic      area. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The      decline in fair value has existed for an extended period of      time. |
|--------|---------------------------------------------------------------------------------|

| · | The      fixed maturity investment has been downgraded by a credit rating      agency. |
|--------|----------------------------------------------------------------------------------------|

| · | The      financial condition of the issuer has  deteriorated. |
|--------|---------------------------------------------------------------|

| · | The      payment structure of the fixed maturity investment and the likelihood of      the issuer being able to make payments that increase in the      future. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Dividends      have been reduced or eliminated or scheduled interest payments have not      been made. |
|--------|--------------------------------------------------------------------------------------------------------|

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|                                                           |   | December      31, 2009       |      |
|----------------------------------------------------------------|--------|------------------------------|-----------|
|                                                           |   | Less      than twelve months |      |   | Twelve      months or longer |   |   | Total |   |
| Fixed      maturities:                                         |   | Estimatedfair      value     |      |   | Unrealizedloss      and OTTI |   |   | Estimatedfair      value |   |   | Unrealizedloss      and OTTI |   |   | Estimatedfair      value |   |   | Unrealizedloss      and OTTI |   |
| U.S.      government direct obligations and U.S. agencies      |   | $                            | 535,595   |   |   | $ | 10,502 |   |   | $ | 19,330 |   |   | $ | 313 |   |   | $ | 554,925 |   |   | $ | 10,815 |   |
| Obligations      of U.S. states and their subdivisions         |   |                         | 132,151   |   |   |   | 4,214 |   |   |   | 608 |   |   |   | - |   |   |   | 132,759 |   |   |   | 4,214 |   |
| Corporate      debt securities                                 |   |                         | 673,534   |   |   |   | 74,461 |   |   |   | 1,190,858 |   |   |   | 142,425 |   |   |   | 1,864,392 |   |   |   | 216,886 |   |
| Asset-backed      securities                                   |   |                         | 92,005    |   |   |   | 52,042 |   |   |   | 1,558,338 |   |   |   | 331,923 |   |   |   | 1,650,343 |   |   |   | 383,965 |   |
| Residential      mortgage-backed securities                    |   |                         | 53,623    |   |   |   | 3,629 |   |   |   | 550,036 |   |   |   | 72,268 |   |   |   | 603,659 |   |   |   | 75,897 |   |
| Commercial      mortgage-backed securities                     |   |                         | -         |   |   |   | - |   |   |   | 297,604 |   |   |   | 35,792 |   |   |   | 297,604 |   |   |   | 35,792 |   |
| Collateralized      debt obligations                           |   |                         | 1,400     |   |   |   | 173 |   |   |   | 34,678 |   |   |   | 2,270 |   |   |   | 36,078 |   |   |   | 2,443 |   |
| Total      fixed maturities                                    |   | $                            | 1,488,308 |   |   | $ | 145,021 |   |   | $ | 3,651,452 |   |   | $ | 584,991 |   |   | $ | 5,139,760 |   |   | $ | 730,012 |   |
|                                                           |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      investments:                                       |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer      products                                         |   | $                            | -         |   |   | $ | - |   |   | $ | 2 |   |   | $ | 2 |   |   | $ | 2 |   |   | $ | 2 |   |
| Equity      mutual funds                                       |   |                         | 2,374     |   |   |   | 450 |   |   |   | - |   |   |   | - |   |   |   | 2,374 |   |   |   | 450 |   |
| Airline      industry                                          |   |                         | 694       |   |   |   | 5 |   |   |   | - |   |   |   | - |   |   |   | 694 |   |   |   | 5 |   |
| Total      equity investments                                  |   | $                            | 3,068     |   |   | $ | 455 |   |   | $ | 2 |   |   | $ | 2 |   |   | $ | 3,070 |   |   | $ | 457 |   |
|                                                           |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      number of securities in an unrealized loss position |   |                         |      |   |   |   | 159 |   |   |   |   |   |   |   | 358 |   |   |   |   |   |   |   | 517 |   |

|                                                           |   | December      31, 2008       |      |
|----------------------------------------------------------------|--------|------------------------------|-----------|
|                                                           |   | Less      than twelve months |      |   | Twelve      months or longer |   |   | Total |   |
| Fixed      maturities:                                         |   | Estimatedfair      value     |      |   | Unrealizedloss |   |   | Estimatedfair      value |   |   | Unrealizedloss |   |   | Estimatedfair      value |   |   | Unrealizedloss |   |
| U.S.      government direct obligations and U.S. agencies      |   | $                            | 41,965    |   |   | $ | 2,042 |   |   | $ | 157,062 |   |   | $ | 4,559 |   |   | $ | 199,027 |   |   | $ | 6,601 |   |
| Obligations      of U.S. states and their subdivisions         |   |                         | 662,723   |   |   |   | 28,728 |   |   |   | 65,697 |   |   |   | 5,715 |   |   |   | 728,420 |   |   |   | 34,443 |   |
| Corporate      debt securities                                 |   |                         | 2,271,214 |   |   |   | 213,400 |   |   |   | 1,556,161 |   |   |   | 402,247 |   |   |   | 3,827,375 |   |   |   | 615,647 |   |
| Asset-backed      securities                                   |   |                         | 500,923   |   |   |   | 116,651 |   |   |   | 1,317,953 |   |   |   | 550,355 |   |   |   | 1,818,876 |   |   |   | 667,006 |   |
| Residential      mortgage-backed securities                    |   |                         | 309,373   |   |   |   | 48,668 |   |   |   | 334,562 |   |   |   | 78,374 |   |   |   | 643,935 |   |   |   | 127,042 |   |
| Commercial      mortgage-backed securities                     |   |                         | 300,880   |   |   |   | 35,332 |   |   |   | 349,646 |   |   |   | 75,587 |   |   |   | 650,526 |   |   |   | 110,919 |   |
| Collateralized      debt obligations                           |   |                         | 32,234    |   |   |   | 4,964 |   |   |   | 36,686 |   |   |   | 3,550 |   |   |   | 68,920 |   |   |   | 8,514 |   |
| Total      fixed maturities                                    |   | $                            | 4,119,312 |   |   | $ | 449,785 |   |   | $ | 3,817,767 |   |   | $ | 1,120,387 |   |   | $ | 7,937,079 |   |   | $ | 1,570,172 |   |
|                                                           |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      investments:                                       |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer      products                                         |   | $                            | 2         |   |   | $ | 2 |   |   | $ | - |   |   | $ | - |   |   | $ | 2 |   |   | $ | 2 |   |
| Equity      mutual funds                                       |   |                         | 2,449     |   |   |   | 962 |   |   |   | - |   |   |   | - |   |   |   | 2,449 |   |   |   | 962 |   |
| Total      equity investments                                  |   | $                            | 2,451     |   |   | $ | 964 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,451 |   |   | $ | 964 |   |
|                                                           |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      number of securities in an unrealized loss position |   |                         |      |   |   |   | 1,956 |   |   |   |   |   |   |   | 571 |   |   |   |   |   |   |   | 2,524 |   |

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|                   |   | December      31, |   |
|------------------------|--------|-------------------|--------|
| Sector                 |   | 2009              |   |   | 2008 |   |
| Finance                |   |              | 77     | % |   |   | 51 | % |
| Utility                |   |              | 10     | % |   |   | 20 | % |
| Natural      resources |   |              | 4      | % |   |   | 9 | % |
| Consumer               |   |              | 4      | % |   |   | 8 | % |
| Transportation         |   |              | 2      | % |   |   | 4 | % |
| Other                  |   |              | 3      | % |   |   | 8 | % |
|                   |   |              | 100    | % |   |   | 100 | % |

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| Increase      in amortized cost of fixed maturity available-for-sale      securities |   | $      | 16,680 |   |
|--------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Change      in deferred acquisition costs and value of business    acquired          |   |   | (3,560 | )      |
| Income      tax                                                                      |   |   | (4,592 | )      |
| Net      cumulative effect                                                           |   | $      | 8,528  |   |

| Bifurcated      credit loss balance, April 1, 2009                                           |   | $      | 43,871  |   |
|----------------------------------------------------------------------------------------------|--------|--------|---------|--------|
| Non-credit      losses reclassified out of retained earnings into AOCI                       |   |   | (16,680 | )      |
| Additions:                                                                                   |   |   |    |   |
| Initial      impairments - credit loss recognized on securities not previously      impaired |   |   | 88,134  |   |
| Bifurcated      credit loss balance, December 31, 2009                                       |   | $      | 115,325 |   |

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|                                                                                                   |   | Year      Ended December 31, |      |
|--------------------------------------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                                                   |   | 2009                         |      |   | 2008 |   |   | 2007 |   |
| Investment      income:                                                                                |   |                         |      |   |   |   |   |   |   |
| Fixed      maturity and short-term investments                                                         |   | $                            | 795,323   |   |   | $ | 766,625 |   |   | $ | 782,013 |   |
| Equity      investments                                                                                |   |                         | 532       |   |   |   | 1,240 |   |   |   | 2,260 |   |
| Mortgage      loans on real estate                                                                     |   |                         | 85,116    |   |   |   | 73,838 |   |   |   | 66,994 |   |
| Policy      loans                                                                                      |   |                         | 244,140   |   |   |   | 218,687 |   |   |   | 205,772 |   |
| Limited      partnership interests                                                                     |   |                         | 2,514     |   |   |   | 2,601 |   |   |   | 10,887 |   |
| Interest      on funds withheld balances under reinsurance agreements                                  |   |                         | 18,779    |   |   |   | 14,413 |   |   |   | 21,199 |   |
| Change      in fair value of an embedded derivative contained in a reinsurance      agreement          |   |                         | -         |   |   |   | - |   |   |   | (5,521 | ) |
| Other,      including interest income (expense) from related parties of $(331), ($444)      and $5,240 |   |                         | 16,240    |   |   |   | 14,331 |   |   |   | 71,734 |   |
|                                                                                                   |   |                         | 1,162,644 |   |   |   | 1,091,735 |   |   |   | 1,155,338 |   |
| Investment      expenses                                                                               |   |                         | (13,560   | ) |   |   | (13,266 | ) |   |   | (15,797 | ) |
| Net      investment income                                                                             |   | $                            | 1,149,084 |   |   | $ | 1,078,469 |   |   | $ | 1,139,541 |   |

|                                                       |   | Year      Ended December 31, |    |
|------------------------------------------------------------|--------|------------------------------|---------|
|                                                       |   | 2009                         |    |   | 2008 |   |   | 2007 |   |
| Net      realized gains (losses):                          |   |                         |    |   |   |   |   |   |   |
| Fixed      maturity and short-term investments             |   | $                            | (58,208 | ) |   | $ | (30,797 | ) |   | $ | (9,570 | ) |
| Equity      investments                                    |   |                         | 7       |   |   |   | (4,162 | ) |   |   | (48 | ) |
| Mortgage      loans on real estate                         |   |                         | 1,091   |   |   |   | 2,568 |   |   |   | 3,202 |   |
| Limited      partnership interests                         |   |                         | -       |   |   |   | 1,112 |   |   |   | (38 | ) |
| Other                                                      |   |                         | (4,258  | ) |   |   | 9,583 |   |   |   | 590 |   |
| Provision      for mortgage impairments, net of recoveries |   |                         | (6,172  | ) |   |   | - |   |   |   | 3,836 |   |
| Net      realized gains (losses) on investments            |   | $                            | (67,540 | ) |   | $ | (21,696 | ) |   | $ | (2,028 | ) |

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|                                                                |   | December      31, 2009 |        |   | December      31, 2008   |   |
|---------------------------------------------------------------------|--------|------------------------|-------------|--------|--------------------------|--------|
| Assets                                                              |   | Carryingamount         |        |   | Estimatedfair      value |   |   | Carryingamount |   |   | Estimatedfair      value |   |
| Fixed      maturities and short-term investments                    |   | $                      | 14,546,467  |   |                     | $      | 14,546,467 |   |   | $ | 12,378,740 |   |   | $ | 12,378,740 |   |
| Mortgage      loans on real estate                                  |   |                   | 1,554,132   |   |                     |   | 1,570,217 |   |   |   | 1,380,101 |   |   |   | 1,373,015 |   |
| Equity      investments                                             |   |                   | 25,679      |   |                     |   | 25,679 |   |   |   | 17,790 |   |   |   | 17,790 |   |
| Policy      loans                                                   |   |                   | 3,971,833   |   |                     |   | 3,971,833 |   |   |   | 3,979,094 |   |   |   | 3,979,094 |   |
| Other      investments                                              |   |                   | 24,312      |   |                     |   | 50,159 |   |   |   | 31,992 |   |   |   | 58,600 |   |
| Derivative      instruments                                         |   |                   | 23,150      |   |                     |   | 23,150 |   |   |   | 92,713 |   |   |   | 92,713 |   |
| Collateral      under securities lending agreements                 |   |                   | 38,296      |   |                     |   | 38,296 |   |   |   | 43,205 |   |   |   | 43,205 |   |
| Collateral      under derivative counterparty collateral agreements |   |                   | 4,300       |   |                     |   | 4,300 |   |   |   | - |   |   |   | - |   |
| Reinsurance      receivable                                         |   |                   | 7,018  |   |                     |   | 7,018  |   |   |   | 8,144 |   |   |   | 8,144 |   |
| Separate      account assets                                        |   |                   | 18,886,901  |   |                     |   | 18,886,901 |   |   |   | 15,121,943 |   |   |   | 15,121,943 |   |

|                                                             |   | December      31, 2009 |       |   | December      31, 2008   |   |
|------------------------------------------------------------------|--------|------------------------|------------|--------|--------------------------|--------|
| Liabilities                                                      |   | Carryingamount         |       |   | Estimatedfair      value |   |   | Carryingamount |   |   | Estimatedfair      value |   |
| Annuity      contract reserves without life contingencies        |   | $                      | 7,167,733  |   |                     | $      | 7,105,090 |   |   | $ | 6,736,101 |   |   | $ | 6,176,405 |   |
| Policyholders'      funds                                        |   |                   | 286,175    |   |                     |   | 286,175 |   |   |   | 320,320 |   |   |   | 320,320 |   |
| Repurchase      agreements                                       |   |                   | 491,338    |   |                     |   | 491,338 |   |   |   | 202,079 |   |   |   | 202,079 |   |
| Commercial      paper                                            |   |                   | 97,613     |   |                     |   | 97,613 |   |   |   | 97,167 |   |   |   | 97,167 |   |
| Payable      under securities lending agreements                 |   |                   | 38,296     |   |                     |   | 38,296 |   |   |   | 43,205 |   |   |   | 43,205 |   |
| Payable      under derivative counterparty collateral agreements |   |                   | 4,300      |   |                     |   | 4,300 |   |   |   | - |   |   |   | - |   |
| Derivative      instruments                                      |   |                   | 3,317      |   |                     |   | 3,317 |   |   |   | - |   |   |   | - |   |
| Notes      payable                                               |   |                   | 532,319    |   |                     |   | 532,319 |   |   |   | 532,307 |   |   |   | 532,307 |   |
| Separate      account liabilities                                |   |                   | 18,886,901 |   |                     |   | 18,886,901 |   |   |   | 15,121,943 |   |   |   | 15,121,943 |   |

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|                                                      |   | Assets      and Liabilities Measured at Fair Value on a RecurringBasis  |       |
|-----------------------------------------------------------|--------|-------------------------------------------------------------------------|------------|
|                                                      |   | December      31, 2009                                                  |       |
| Assets                                                    |   | Quoted      prices in active markets for identical      assets(Level 1) |       |   | Significant      other observable inputs(Level 2) |   |   | Significant      unobservable inputs(Level 3) |   |   | Total |   |
| Fixed      maturities, available-for-sale:                |   |                                                                    |       |   |   |   |   |   |   |   |   |   |
| U.S.      government direct obligations and U.S. agencies |   | $                                                                       | -          |   |   | $ | 2,038,794 |   |   | $ | - |   |   | $ | 2,038,794 |   |
| Obligations      of U.S. states and their subdivisions    |   |                                                                    | -          |   |   |   | 1,363,851 |   |   |   | - |   |   |   | 1,363,851 |   |
| Foreign      governments                                  |   |                                                                    | -          |   |   |   | 465 |   |   |   | - |   |   |   | 465 |   |
| Corporate      debt securities                            |   |                                                                    | -          |   |   |   | 6,940,809 |   |   |   | 188,936 |   |   |   | 7,129,745 |   |
| Asset-backed      securities                              |   |                                                                    | -          |   |   |   | 1,495,680 |   |   |   | 392,365 |   |   |   | 1,888,045 |   |
| Residential      mortgage-backed securities               |   |                                                                    | -          |   |   |   | 771,063 |   |   |   | - |   |   |   | 771,063 |   |
| Commercial      mortgage-backed securities                |   |                                                                    | -          |   |   |   | 617,860 |   |   |   | 58,270 |   |   |   | 676,130 |   |
| Collateralized      debt obligations                      |   |                                                                    | -          |   |   |   | 47,991 |   |   |   | 1,729 |   |   |   | 49,720 |   |
| Total      fixed maturities available-for-sale            |   |                                                                    | -          |   |   |   | 13,276,513 |   |   |   | 641,300 |   |   |   | 13,917,813 |   |
| Fixed      maturities, held for trading:                  |   |                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.      government direct obligations and U.S. agencies |   |                                                                    | -          |   |   |   | 39,112 |   |   |   | - |   |   |   | 39,112 |   |
| Corporate      debt securities                            |   |                                                                    | -          |   |   |   | 50,128 |   |   |   | - |   |   |   | 50,128 |   |
| Asset-backed      securities                              |   |                                                                    | -          |   |   |   | 42,717 |   |   |   | - |   |   |   | 42,717 |   |
| Commercial      mortgage-backed securities                |   |                                                                    | -          |   |   |   | 8,217 |   |   |   | - |   |   |   | 8,217 |   |
| Total      fixed maturities held for trading              |   |                                                                    | -          |   |   |   | 140,174 |   |   |   | - |   |   |   | 140,174 |   |
| Equity      investments available-for-sale:               |   |                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer      products                                    |   |                                                                    | 68         |   |   |   | - |   |   |   | - |   |   |   | 68 |   |
| Equity      mutual funds                                  |   |                                                                    | 20,277     |   |   |   | 505 |   |   |   | - |   |   |   | 20,782 |   |
| Airline      industry                                     |   |                                                                    | 4,829      |   |   |   | - |   |   |   | - |   |   |   | 4,829 |   |
| Total      equity investments                             |   |                                                                    | 25,174     |   |   |   | 505 |   |   |   | - |   |   |   | 25,679 |   |
| Short-term      investments available-for-sale            |   |                                                                    | 55,557     |   |   |   | 432,923 |   |   |   | - |   |   |   | 488,480 |   |
| Collateral      under securities lending agreements       |   |                                                                    | 38,296     |   |   |   | - |   |   |   | - |   |   |   | 38,296 |   |
| Other      assets 1                                       |   |                                                                    | -          |   |   |   | 23,150 |   |   |   | - |   |   |   | 23,150 |   |
| Separate      account assets 2                            |   |                                                                    | 11,039,441 |   |   |   | 7,303,499 |   |   |   | 9,960 |   |   |   | 18,352,900 |   |
| Total      assets                                         |   | $                                                                       | 11,158,468 |   |   | $ | 21,176,764 |   |   | $ | 651,260 |   |   | $ | 32,986,492 |   |
|                                                      |   |                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                               |   |                                                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities 1                                  |   | $                                                                       | -          |   |   | $ | - |   |   | $ | 3,317 |   |   | $ | 3,317 |   |

| 1 | Includes      derivative financialinstruments. |
|---|------------------------------------------------|

| 2 | Includes      only separate account investments which are carried at the fair value of      the underlying invested    assets owned by the      separate accounts. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                             |   | Recurring      Level 3 Financial Assets and Liabilities                        |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|---------|
|                                                                                                                                                                             |   | Year      Ended December 31, 2009                                              |    |
|                                                                                                                                                                             |   | Fixed      maturities available-for sale: U.S government andU.S.      agencies |    |   | Fixed      maturities available-for-sale: corporatedebt    securities |   |   | Fixed      maturities available-for-sale: asset-    backedsecurities |   |   | Fixed      maturities available-for-sale: commercial      mortgage-backedsecurities |   |   | Fixed      maturities available-for-sale: collateralized debt      obligations |   |   | Other      assets and liabilities 1 |   |   | Separate      accounts |   |
| Balance,      January 1, 2009                                                                                                                                                    |   | $                                                                              | 14,711  |   |   | $ | 203,975 |   |   | $ | 521,351 |   |   | $ | 55,321 |   |   | $ | 213 |   |   | $ | 3,224 |   |   | $ | 532 |   |
| Realized      and unrealized gains and losses:                                                                                                                                   |   |                                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gains      (losses) included in net income                                                                                                                                       |   |                                                                           | -       |   |   |   | (2,597 | ) |   |   | (84,990 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Gains      (losses) included in other comprehensive income (loss)                                                                                                                |   |                                                                           | 2,227   |   |   |   | 47,030 |   |   |   | 178,951 |   |   |   | 3,281 |   |   |   | 1,592 |   |   |   | (6,541 | ) |   |   | 1,902 |   |
| Purchases,      issuances and settlements                                                                                                                                        |   |                                                                           | (256    | ) |   |   | (52,008 | ) |   |   | (124,017 | ) |   |   | (332 | ) |   |   | (12,027 | ) |   |   | - |   |   |   | 7,526 |   |
| Transfers      in (out) of Level 3                                                                                                                                               |   |                                                                           | (16,682 | ) |   |   | (7,464 | ) |   |   | (98,930 | ) |   |   | - |   |   |   | 11,951 |   |   |   | - |   |   |   | - |   |
| Balance,      December 31, 2009                                                                                                                                                  |   | $                                                                              | -       |   |   | $ | 188,936 |   |   | $ | 392,365 |   |   | $ | 58,270 |   |   | $ | 1,729 |   |   | $ | (3,317 | ) |   | $ | 9,960 |   |
| Total      gains (losses) for the period included in net income attributable to the      change in unrealized gains and losses relating to assets held at December      31, 2009 |   | $                                                                              | -       |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |

|                                                                                     |   | Year      Ended December 31, 2009               |    |
|------------------------------------------------------------------------------------------|--------|-------------------------------------------------|---------|
|                                                                                     |   | Net      realized gains (losses) on investments |    |   | Net      investmentincome |   |
| Realized      and unrealized gains and losses included in net income for the      period |   | $                                               | (87,587 | ) |   | $ | - |   |

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|                                     |   | Life      Insurance In-Force |        |
|------------------------------------------|--------|------------------------------|-------------|
|                                     |   | Individual                   |        |   | Group |   |   | Total |   |
| Written      and earned direct           |   | $                            | 50,468,445  |   |   | $ | 33,398,994 |   |   | $ | 83,867,439 |   |
| Reinsurance      ceded                   |   |                         | (11,468,482 | ) |   |   | - |   |   |   | (11,468,482 | ) |
| Reinsurance      assumed                 |   |                         | 86,580,158  |   |   |   | - |   |   |   | 86,580,158 |   |
| Net                                      |   | $                            | 125,580,121 |   |   | $ | 33,398,994 |   |   | $ | 158,979,115 |   |
|                                     |   |                         |        |   |   |   |   |   |   |   |   |   |
| Percentage      of amount assumed to net |   |                         | 68.9        | % |   |   | 0.0 | % |   |   | 54.5 | % |

|                           |   | Premium      Income |    |
|--------------------------------|--------|---------------------|---------|
|                           |   |                |    |   |   |   |   |   |   |
|                           |   | Life      Insurance |    |   | Annuities |   |   | Total |   |
| Written      and earned direct |   | $                   | 431,585 |   |   | $ | 3,039 |   |   | $ | 434,624 |   |
| Reinsurance      ceded         |   |                | (48,687 | ) |   |   | (74 | ) |   |   | (48,761 | ) |
| Reinsurance      assumed       |   |                | 174,389 |   |   |   | - |   |   |   | 174,389 |   |
| Net                            |   | $                   | 557,287 |   |   | $ | 2,965 |   |   | $ | 560,252 |   |

|                                     |   | Life      Insurance In-Force |        |
|------------------------------------------|--------|------------------------------|-------------|
|                                     |   | Individual                   |        |   | Group |   |   | Total |   |
| Written      and earned direct           |   | $                            | 51,109,750  |   |   | $ | 32,332,557 |   |   | $ | 83,442,307 |   |
| Reinsurance      ceded                   |   |                         | (11,655,940 | ) |   |   | - |   |   |   | (11,655,940 | ) |
| Reinsurance      assumed                 |   |                         | 91,066,830  |   |   |   | - |   |   |   | 91,066,830 |   |
| Net                                      |   | $                            | 130,520,640 |   |   | $ | 32,332,557 |   |   | $ | 162,853,197 |   |
|                                     |   |                         |        |   |   |   |   |   |   |   |   |   |
| Percentage      of amount assumed to net |   |                         | 69.8        | % |   |   | 0.0 | % |   |   | 55.9 | % |

|                           |   | Premium      Income |    |
|--------------------------------|--------|---------------------|---------|
|                           |   |                |    |   |   |   |   |   |   |
|                           |   | Life      Insurance |    |   | Annuities |   |   | Total |   |
| Written      and earned direct |   | $                   | 371,952 |   |   | $ | (1,153 | ) |   | $ | 370,799 |   |
| Reinsurance      ceded         |   |                | (37,035 | ) |   |   | (141 | ) |   |   | (37,176 | ) |
| Reinsurance      assumed       |   |                | 189,908 |   |   |   | 1,605 |   |   |   | 191,513 |   |
| Net                            |   | $                   | 524,825 |   |   | $ | 311 |   |   | $ | 525,136 |   |

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|                           |   | Premium      Income |       |
|--------------------------------|--------|---------------------|------------|
|                           |   |                |       |   |   |   |   |   |   |
|                           |   | Life      Insurance |       |   | Annuities |   |   | Total |   |
| Written      and earned direct |   | $                   | 317,339    |   |   | $ | 5,058 |   |   | $ | 322,397 |   |
| Reinsurance      ceded         |   |                | (1,406,752 | ) |   |   | (25,608 | ) |   |   | (1,432,360 | ) |
| Reinsurance      assumed       |   |                | 252,645    |   |   |   | 51 |   |   |   | 252,696 |   |
| Net                            |   | $                   | (836,768   | ) |   | $ | (20,499 | ) |   | $ | (857,267 | ) |

|                                      |   | DAC    |     |   | VOBA   |   |   | Total  |   |
|-------------------------------------------|--------|--------|----------|--------|--------|--------|--------|--------|--------|
| Balance,      January 1, 2007             |   | $      | 451,215  |   |   | $      | 53,919 |   |   | $ | 505,134 |   |
| Capitalized      additions                |   |   | 73,062   |   |   |   | -      |   |   |   | 73,062 |   |
| Amortization      and writedowns          |   |   | (128,575 | )      |   |   | (6,995 | )      |   |   | (135,570 | ) |
| Unrealized      investment (gains) losses |   |   | 1,121    |   |   |   | 118    |   |   |   | 1,239 |   |
| Purchase      accounting adjustment       |   |   | -        |   |   |   | (563   | )      |   |   | (563 | ) |
| Balance,      December 31, 2007           |   |   | 396,823  |   |   |   | 46,479 |   |   |   | 443,302 |   |
| Capitalized      additions                |   |   | 65,108   |   |   |   | -      |   |   |   | 65,108 |   |
| Amortization      and writedowns          |   |   | (55,551  | )      |   |   | 2,852  |   |   |   | (52,699 | ) |
| Unrealized      investment (gains) losses |   |   | 251,940  |   |   |   | 6,380  |   |   |   | 258,320 |   |
| Balance,      December 31, 2008           |   |   | 658,320  |   |   |   | 55,711 |   |   |   | 714,031 |   |
| Capitalized      additions                |   |   | 80,977   |   |   |   | -      |   |   |   | 80,977 |   |
| Amortization      and writedowns          |   |   | (64,837  | )      |   |   | (1,161 | )      |   |   | (65,998 | ) |
| Unrealized      investment (gains) losses |   |   | (242,085 | )      |   |   | (5,881 | )      |   |   | (247,966 | ) |
| Balance,      December 31, 2009           |   | $      | 432,375  |   |   | $      | 48,669 |   |   | $ | 481,044 |   |

| Year      Ended December 31, |   | Amount |   |
|------------------------------|--------|--------|--------|
| 2010                         |   | $      | 2,213  |   |
| 2011                         |   |   | 2,421  |   |
| 2012                         |   |   | 2,699  |   |
| 2013                         |   |   | 2,929  |   |
| 2014                         |   |   | 3,119  |   |

| Balance,      January 1, 2008             |   | $      | 101,655 |   |
|-------------------------------------------|--------|--------|---------|--------|
| Purchase      price accounting adjustment |   |   | 3,600   |   |
| Balance,      December 31, 2008 and 2009  |   | $      | 105,255 |   |

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|                               |   | December      31, 2009     |   |
|------------------------------------|--------|----------------------------|--------|
|                               |   | Gross      carrying amount |   |   | Accumulated      amortization |   |   | Net      book value |   |
| Customer      relationships        |   | $                          | 36,314 |   |   | $ | (10,039 | ) |   | $ | 26,275 |   |
| Preferred      provider agreements |   |                       | 7,970  |   |   |   | (4,613 | ) |   |   | 3,357 |   |
| Total                              |   | $                          | 44,284 |   |   | $ | (14,652 | ) |   | $ | 29,632 |   |

|                               |   | December      31, 2008     |   |
|------------------------------------|--------|----------------------------|--------|
|                               |   | Gross      carrying amount |   |   | Accumulated      amortization |   |   | Net      book value |   |
| Customer      relationships        |   | $                          | 36,314 |   |   | $ | (7,249 | ) |   | $ | 29,065 |   |
| Preferred      provider agreements |   |                       | 7,970  |   |   |   | (3,211 | ) |   |   | 4,759 |   |
| Total                              |   | $                          | 44,284 |   |   | $ | (10,460 | ) |   | $ | 33,824 |   |

| Year      Ended December 31, |   | Amount |   |
|------------------------------|--------|--------|--------|
| 2010                         |   | $      | 3,996  |   |
| 2011                         |   |   | 3,793  |   |
| 2012                         |   |   | 3,590  |   |
| 2013                         |   |   | 3,410  |   |
| 2014                         |   |   | 3,215  |   |

|                              |   | December      31, |           |
|-----------------------------------|--------|-------------------|----------------|
|                              |   | 2009              |           |   | 2008 |   |
| Commercial      paper outstanding |   | $                 | 97,613         |   |   | $ | 97,167 |   |
| Maturity      range (days)        |   |              | 7 -      20    |   |   |   | 6 -      28 |   |
| Interest      rate range          |   |              | 0.3%-      0.4 | % |   |   | 0.6%      - 2.4 | % |

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|                     |   | Year      Ended December 31, |      |
|--------------------------|--------|------------------------------|-----------|
|                     |   | 2009                         |      |   | 2008 |   |   | 2007 |   |
|                     |   | (Unaudited)                  |      |   |   |   |   |   |   |
| Net      income          |   | $                            | 282,033   |   |   | $ | 247,957 |   |   | $ | 562,309 |   |
| Capital      and surplus |   |                         | 1,375,267 |   |   |   | 901,429 |   |   |   | 1,846,170 |   |

|                                                                                                                 |   | Year      Ended December 31, 2009 |      |
|----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                                                                                 |   | Before-tax                        |      |   | Tax      (Expense) |   |   | Net-of-tax |   |
|                                                                                                                 |   | Amount                            |      |   | Benefit |   |   | Amount |   |
| Unrealized      holding gains (losses) arising during the year on available-for-sale fixed      maturity investments |   | $                                 | 1,174,693 |   |   | $ | (411,143 | ) |   | $ | 763,550 |   |
| Net      changes during the year related to cash flow hedges                                                         |   |                              | (57,218   | ) |   |   | 20,027 |   |   |   | (37,191 | ) |
| Reclassification      adjustment for (gains)losses realized in net income                                            |   |                              | 71,473    |   |   |   | (25,016 | ) |   |   | 46,457 |   |
| Net      unrealized gains (losses)                                                                                   |   |                              | 1,188,948 |   |   |   | (416,132 | ) |   |   | 772,816 |   |
| Future      policy benefits, deferred acquisition costs and value of business acquired      adjustments              |   |                              | (250,468  | ) |   |   | 87,664 |   |   |   | (162,804 | ) |
| Net      unrealized gains (losses)                                                                                   |   |                              | 938,480   |   |   |   | (328,468 | ) |   |   | 610,012 |   |
| Employee      benefit plan adjustment                                                                                |   |                              | 43,797    |   |   |   | (15,329 | ) |   |   | 28,468 |   |
| Other      comprehensive income (loss)                                                                               |   | $                                 | 982,277   |   |   | $ | (343,797 | ) |   | $ | 638,480 |   |

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|                                                                                                                 |   | Year      Ended December 31, 2008 |       |
|----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                                                                                 |   | Before-tax                        |       |   | Tax      (Expense) |   |   | Net-of-tax |   |
|                                                                                                                 |   | Amount                            |       |   | Benefit |   |   | Amount |   |
| Unrealized      holding gains (losses) arising during the year on available-for-sale fixed      maturity investments |   | $                                 | (1,431,239 | ) |   | $ | 496,555 |   |   | $ | (934,684 | ) |
| Net      changes during the year related to cash flow hedges                                                         |   |                              | 85,494     |   |   |   | (29,923 | ) |   |   | 55,571 |   |
| Reclassification      adjustment for (gains)losses realized in net income                                            |   |                              | 38,978     |   |   |   | (10,989 | ) |   |   | 27,989 |   |
| Net      unrealized gains (losses)                                                                                   |   |                              | (1,306,767 | ) |   |   | 455,643 |   |   |   | (851,124 | ) |
| Future      policy benefits, deferred acquisition costs and value of business acquired      adjustments              |   |                              | 254,180    |   |   |   | (88,963 | ) |   |   | 165,217 |   |
| Net      unrealized gains (losses)                                                                                   |   |                              | (1,052,587 | ) |   |   | 366,680 |   |   |   | (685,907 | ) |
| Employee      benefit plan adjustment                                                                                |   |                              | (115,766   | ) |   |   | 40,518 |   |   |   | (75,248 | ) |
| Other      comprehensive income (loss)                                                                               |   | $                                 | (1,168,353 | ) |   | $ | 407,198 |   |   | $ | (761,155 | ) |

|                                                                                                                 |   | Year      Ended December 31, 2007 |   |
|----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                                                                 |   | Before-tax                        |   |   | Tax      (Expense) |   |   | Net-of-tax |   |
|                                                                                                                 |   | Amount                            |   |   | Benefit |   |   | Amount |   |
| Unrealized      holding gains (losses) arising during the year on available-for-sale fixed      maturity investments |   | $                                 | 3,833  |   |   | $ | (1,342 | ) |   | $ | 2,491 |   |
| Net      changes during the year related to cash flow hedges                                                         |   |                              | 12,317 |   |   |   | (4,311 | ) |   |   | 8,006 |   |
| Reclassification      adjustment for (gains)losses realized in net income                                            |   |                              | 3,098  |   |   |   | (1,084 | ) |   |   | 2,014 |   |
| Net      unrealized gains (losses)                                                                                   |   |                              | 19,248 |   |   |   | (6,737 | ) |   |   | 12,511 |   |
| Future      policy benefits, deferred acquisition costs and value of business acquired      adjustments              |   |                              | (4,013 | ) |   |   | 1,405 |   |   |   | (2,608 | ) |
| Net      unrealized gains (losses)                                                                                   |   |                              | 15,235 |   |   |   | (5,332 | ) |   |   | 9,903 |   |
| Employee      benefit plan adjustment                                                                                |   |                              | 53,843 |   |   |   | (18,845 | ) |   |   | 34,998 |   |
| Other      comprehensive income (loss)                                                                               |   | $                                 | 69,078 |   |   | $ | (24,177 | ) |   | $ | 44,901 |   |

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|                                  |   | Year      Ended December 31, |    |
|---------------------------------------|--------|------------------------------|---------|
|                                  |   | 2009                         |    |   | 2008 |   |   | 2007 |   |
| Compensation                          |   | $                            | 273,934 |   |   | $ | 282,502 |   |   | $ | 281,670 |   |
| Commissions                           |   |                         | 114,461 |   |   |   | 118,978 |   |   |   | 128,003 |   |
| Premium      and other taxes          |   |                         | 22,947  |   |   |   | 25,704 |   |   |   | 21,366 |   |
| Capitalization      of DAC            |   |                         | (80,977 | ) |   |   | (65,108 | ) |   |   | (73,062 | ) |
| Depreciation      and amortization    |   |                         | 15,603  |   |   |   | 19,240 |   |   |   | 22,362 |   |
| Rent,      net of sublease income     |   |                         | 6,767   |   |   |   | 3,875 |   |   |   | 5,752 |   |
| Other                                 |   |                         | 76,408  |   |   |   | 44,504 |   |   |   | 46,335 |   |
| Total      general insurance expenses |   | $                            | 429,143 |   |   | $ | 429,695 |   |   | $ | 432,426 |   |

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Table of Contents

|                                         |   | Defined      benefit pension plan |    |   | Post-retirement      medical plan |   |    | Supplemental      executiveretirement plan |   |   | Total  |   |
|----------------------------------------------|--------|-----------------------------------|---------|--------|-----------------------------------|--------|---------|--------------------------------------------|--------|--------|--------|--------|
|                                         |   | 2009                              |    |   | 2008                              |   |    | 2009                                       |   |   | 2008   |   |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Change      in projected benefit obligation: |   |                              |    |   |                              |   |    |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Benefit      obligation, January 1           |   | $                                 | 303,383 |   |                              | $      | 278,246 |                                       |   | $      | 16,483 |   |   | $ | 26,207 |   |   | $ | 45,765 |   |   | $ | 41,676 |   |   | $ | 365,631 |   |   | $ | 346,129 |   |
| Service      cost                            |   |                              | 4,087   |   |                              |   | 5,743   |                                       |   |   | 680    |   |   |   | 1,263 |   |   |   | 717 |   |   |   | 665 |   |   |   | 5,484 |   |   |   | 7,671 |   |
| Interest      cost                           |   |                              | 19,135  |   |                              |   | 18,356  |                                       |   |   | 709    |   |   |   | 1,254 |   |   |   | 2,856 |   |   |   | 2,735 |   |   |   | 22,700 |   |   |   | 22,345 |   |
| Actuarial      (gain) loss                   |   |                              | 2,253   |   |                              |   | 23,200  |                                       |   |   | (5,129 | )      |   |   | (2,327 | ) |   |   | (2,517 | ) |   |   | 3,578 |   |   |   | (5,393 | ) |   |   | 24,451 |   |
| Regular      benefits paid                   |   |                              | (10,580 | )      |                              |   | (10,217 | )                                          |   |   | (607   | )      |   |   | (1,344 | ) |   |   | (2,391 | ) |   |   | (1,761 | ) |   |   | (13,578 | ) |   |   | (13,322 | ) |
| Special      termination benefits            |   |                              | -       |   |                              |   | -       |                                       |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 2,053 |   |   |   | - |   |   |   | 2,053 |   |
| Curtailments                                 |   |                              | -       |   |                              |   | (14,165 | )                                          |   |   | -      |   |   |   | (8,855 | ) |   |   | - |   |   |   | (3,181 | ) |   |   | - |   |   |   | (26,201 | ) |
| Other                                        |   |                              | -       |   |                              |   | 2,220   |                                       |   |   | -      |   |   |   | 285 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,505 |   |
| Benefit      obligation, December 31         |   | $                                 | 318,278 |   |                              | $      | 303,383 |                                       |   | $      | 12,136 |   |   | $ | 16,483 |   |   | $ | 44,430 |   |   | $ | 45,765 |   |   | $ | 374,844 |   |   | $ | 365,631 |   |

|                                     |   | Defined      benefit pension plan |    |   | Post-retirement      medical plan |   |    | Supplemental      executiveretirement plan |   |   | Total  |   |
|------------------------------------------|--------|-----------------------------------|---------|--------|-----------------------------------|--------|---------|--------------------------------------------|--------|--------|--------|--------|
|                                     |   | 2009                              |    |   | 2008                              |   |    | 2009                                       |   |   | 2008   |   |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Change      in plan assets:              |   |                              |    |   |                              |   |    |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Value      of plan assets, January 1     |   | $                                 | 201,970 |   |                              | $      | 274,452 |                                       |   | $      | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 201,970 |   |   | $ | 274,452 |   |
| Actual      return (loss) on plan assets |   |                              | 47,188  |   |                              |   | (73,765 | )                                          |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 47,188 |   |   |   | (73,765 | ) |
| Employer      contributions              |   |                              | 12,500  |   |                              |   | 11,500  |                                       |   |   | 607    |   |   |   | 1,344 |   |   |   | 2,391 |   |   |   | 1,761 |   |   |   | 15,498 |   |   |   | 14,605 |   |
| Benefits      paid                       |   |                              | (10,580 | )      |                              |   | (10,217 | )                                          |   |   | (607   | )      |   |   | (1,344 | ) |   |   | (2,391 | ) |   |   | (1,761 | ) |   |   | (13,578 | ) |   |   | (13,322 | ) |
| Value      of plan assets, December 31   |   | $                                 | 251,078 |   |                              | $      | 201,970 |                                       |   | $      | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 251,078 |   |   | $ | 201,970 |   |

|                                             |   | Defined      benefit pension plan |    |   | Post-retirement      medical plan |   |     | Supplemental      executiveretirement plan |   |   | Total   |   |
|--------------------------------------------------|--------|-----------------------------------|---------|--------|-----------------------------------|--------|----------|--------------------------------------------|--------|--------|---------|--------|
|                                             |   | 2009                              |    |   | 2008                              |   |     | 2009                                       |   |   | 2008    |   |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Funded      (under funded) status at December 31 |   | $                                 | (67,200 | )      |                              | $      | (101,413 | )                                          |   | $      | (12,136 | )      |   | $ | (16,483 | ) |   | $ | (44,430 | ) |   | $ | (45,765 | ) |   | $ | (123,766 | ) |   | $ | (163,661 | ) |

|                                                        |   | Defined      benefit pension plan |    |   | Post-retirement      medical plan |   |     | Supplemental      executiveretirement plan |   |   | Total  |   |
|-------------------------------------------------------------|--------|-----------------------------------|---------|--------|-----------------------------------|--------|----------|--------------------------------------------|--------|--------|--------|--------|
|                                                        |   | 2009                              |    |   | 2008                              |   |     | 2009                                       |   |   | 2008   |   |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Amounts      recognized in consolidated balance sheets:     |   |                              |    |   |                              |   |     |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated      other comprehensive (expense)income (loss) |   |                              | (79,353 | )      |                              |   | (116,920 | )                                          |   |   | 17,964 |   |   |   | 14,925 |   |   |   | (4,484 | ) |   |   | (7,676 | ) |   |   | (65,873 | ) |   |   | (109,671 | ) |

|                                   |   | Defined      benefit pension plan |    |   | Post-retirement      medical plan |   |    | Supplemental      executiveretirement plan |   |   | Total           |   |
|----------------------------------------|--------|-----------------------------------|---------|--------|-----------------------------------|--------|---------|--------------------------------------------|--------|--------|-----------------|--------|
|                                   |   | Gross                             |    |   | Net      of tax                   |   |    | Gross                                      |   |   | Net      of tax |   |   | Gross |   |   | Net      of tax |   |   | Gross |   |   | Net      of tax |   |
| Net      gain (loss)                   |   | $                                 | (81,955 | )      |                              | $      | (53,271 | )                                          |   | $      | 6,522           |   |   | $ | 4,239 |   |   | $ | (238 | ) |   | $ | (155 | ) |   | $ | (75,671 | ) |   | $ | (49,187 | ) |
| Net      prior service (cost) credit   |   |                              | (300    | )      |                              |   | (195    | )                                          |   |   | 11,442          |   |   |   | 7,437 |   |   |   | (4,246 | ) |   |   | (2,760 | ) |   |   | 6,896 |   |   |   | 4,482 |   |
| Net      transition asset (obligation) |   |                              | 2,902   |   |                              |   | 1,886   |                                       |   |   | -               |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,902 |   |   |   | 1,886 |   |
|                                   |   | $                                 | (79,353 | )      |                              | $      | (51,580 | )                                          |   | $      | 17,964          |   |   | $ | 11,676 |   |   | $ | (4,484 | ) |   | $ | (2,915 | ) |   | $ | (65,873 | ) |   | $ | (42,819 | ) |

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Table of Contents

|                                   |   | Defined      benefit pension plan |   |   | Post-retirement      medical plan |   |   | Supplemental      executive retirement plan |   |   | Total           |   |
|----------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------------|--------|--------|---------------------------------------------|--------|--------|-----------------|--------|
|                                   |   | Gross                             |   |   | Net      of tax                   |   |   | Gross                                       |   |   | Net      of tax |   |   | Gross |   |   | Net      of tax |   |   | Gross |   |   | Net      of tax |   |
| Net      gain (loss)                   |   | $                                 | (6,285 | )      |                              | $      | (4,085 | )                                           |   | $      | 407             |   |   | $ | 265 |   |   | $ | - |   |   | $ | - |   |   | $ | (5,878 | ) |   | $ | (3,820 | ) |
| Net      prior service (cost) credit   |   |                              | (82    | )      |                              |   | (53    | )                                           |   |   | 1,650           |   |   |   | 1,072 |   |   |   | (675 | ) |   |   | (439 | ) |   |   | 893 |   |   |   | 580 |   |
| Net      transition asset (obligation) |   |                              | 1,514  |   |                              |   | 984    |                                        |   |   | -               |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,514 |   |   |   | 984 |   |
|                                   |   | $                                 | (4,853 | )      |                              | $      | (3,154 | )                                           |   | $      | 2,057           |   |   | $ | 1,337 |   |   | $ | (675 | ) |   | $ | (439 | ) |   | $ | (3,471 | ) |   | $ | (2,256 | ) |

|                   |   | Defined      benefit pension plan |   |   | Post-retirement      medical plan |   |   | Supplemental      executive retirement plan |   |
|------------------------|--------|-----------------------------------|--------|--------|-----------------------------------|--------|--------|---------------------------------------------|--------|
| 2010                   |   | $                                 | 10,891 |   |                              | $      | 768    |                                        |   | $ | 2,699 |   |
| 2011                   |   |                              | 11,359 |   |                              |   | 806    |                                        |   |   | 2,916 |   |
| 2012                   |   |                              | 12,142 |   |                              |   | 810    |                                        |   |   | 2,913 |   |
| 2013                   |   |                              | 12,911 |   |                              |   | 829    |                                        |   |   | 2,908 |   |
| 2014                   |   |                              | 13,742 |   |                              |   | 933    |                                        |   |   | 2,721 |   |
| 2015      through 2019 |   |                              | 88,795 |   |                              |   | 5,977  |                                        |   |   | 18,181 |   |

|                                                 |   | Defined      benefit pension plan |    |
|------------------------------------------------------|--------|-----------------------------------|---------|
|                                                 |   | 2009                              |    |   | 2008 |   |   | 2007 |   |
| Components      of net periodic (benefit) cost:      |   |                              |    |   |   |   |   |   |   |
| Service      cost                                    |   | $                                 | 4,087   |   |   | $ | 5,743 |   |   | $ | 9,685 |   |
| Interest      cost                                   |   |                              | 19,135  |   |   |   | 18,356 |   |   |   | 17,293 |   |
| Expected      return on plan assets                  |   |                              | (16,073 | ) |   |   | (20,499 | ) |   |   | (20,166 | ) |
| Amortization      of transition obligation           |   |                              | (1,514  | ) |   |   | (1,514 | ) |   |   | (1,514 | ) |
| Amortization      of unrecognized prior service cost |   |                              | 88      |   |   |   | 120 |   |   |   | 218 |   |
| Amortization      of loss from earlier periods       |   |                              | 10,131  |   |   |   | 679 |   |   |   | 4,877 |   |
| Net      periodic (benefit) cost                     |   | $                                 | 15,854  |   |   | $ | 2,885 |   |   | $ | 10,393 |   |

|                                                 |   | Post-retirement      medical plan |   |
|------------------------------------------------------|--------|-----------------------------------|--------|
|                                                 |   | 2009                              |   |   | 2008 |   |   | 2007 |   |
| Components      of net periodic (benefit) cost:      |   |                              |   |   |   |   |   |   |   |
| Service      cost                                    |   | $                                 | 680    |   |   | $ | 1,263 |   |   | $ | 2,050 |   |
| Interest      cost                                   |   |                              | 709    |   |   |   | 1,254 |   |   |   | 1,489 |   |
| Amortization      of unrecognized prior service cost |   |                              | (1,650 | ) |   |   | (2,169 | ) |   |   | (3,727 | ) |
| Amortization      of loss from earlier periods       |   |                              | (440   | ) |   |   | 85 |   |   |   | 651 |   |
| Net      periodic (benefit) cost                     |   | $                                 | (701   | ) |   | $ | 433 |   |   | $ | 463 |   |

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Table of Contents

|                                                 |   | Supplemental      executive retirement plan |   |
|------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                 |   | 2009                                        |   |   | 2008 |   |   | 2007 |   |
| Components      of net periodic (benefit) cost:      |   |                                        |   |   |   |   |   |   |   |
| Service      cost                                    |   | $                                           | 716    |   |   | $ | 665 |   |   | $ | 1,044 |   |
| Interest      cost                                   |   |                                        | 2,856  |   |   |   | 2,735 |   |   |   | 2,589 |   |
| Amortization      of unrecognized prior service cost |   |                                        | 675    |   |   |   | 814 |   |   |   | 986 |   |
| Amortization      of loss from earlier periods       |   |                                        | -      |   |   |   | - |   |   |   | 250 |   |
| Net      periodic (benefit) cost                     |   | $                                           | 4,247  |   |   | $ | 4,214 |   |   | $ | 4,869 |   |

|                                |   | Defined      benefit pension plan |   |
|-------------------------------------|--------|-----------------------------------|--------|
|                                |   | 2009                              |   |   | 2008 |   |   | 2007 |   |
| Discount      rate                  |   |                              | 6.37   | % |   |   | 6.40 | % |   |   | 6.75 | % |
| Expected      return on plan assets |   |                              | 8.00   | % |   |   | 8.00 | % |   |   | 8.00 | % |
| Rate      of compensation increase  |   |                              | 4.94   | % |   |   | 4.94 | % |   |   | 3.19 | % |

|               |   | Post-retirement      medical plan |   |
|--------------------|--------|-----------------------------------|--------|
|               |   | 2009                              |   |   | 2008 |   |   | 2007 |   |
| Discount      rate |   |                              | 6.37   | % |   |   | 6.40 | % |   |   | 6.75 | % |

|                               |   | Supplemental      executive retirement plan |   |
|------------------------------------|--------|---------------------------------------------|--------|
|                               |   | 2009                                        |   |   | 2008 |   |   | 2007 |   |
| Discount      rate                 |   |                                        | 6.37   | % |   |   | 6.40 | % |   |   | 6.75 | % |
| Rate      of compensation increase |   |                                        | 6.00   | % |   |   | 6.00 | % |   |   | 6.00 | % |

|                                                                     |   | One      percentagepoint increase |   |   | One      percentagepoint decrease |   |
|--------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------------|--------|
| Increase      (decrease) on total service and interest cost oncomponents |   | $                                 | 182    |   |                              | $      | (156 | ) |
| Increase      (decrease) on post-retirement benefit obligation           |   |                              | 1,264  |   |                              |   | (1,107 | ) |

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Table of Contents

|                   |   | December      31, |   |
|------------------------|--------|-------------------|--------|
|                   |   | 2009              |   |   | 2008 |   |
| Equity      securities |   |              | 65     | % |   |   | 62 | % |
| Debt      securities   |   |              | 33     | % |   |   | 30 | % |
| Other                  |   |              | 2      | % |   |   | 8 | % |
| Total                  |   |              | 100    | % |   |   | 100 | % |

|                                   |   | Defined      Benefit Plan Assets Measured at Fair Value on a Recurring      Basis |   |
|----------------------------------------|--------|-----------------------------------------------------------------------------------|--------|
|                                   |   | December      31, 2009                                                            |   |
|                                   |   | Quoted      pricesin activemarkets foridentical    assets                         |   |   | Significantotherobservableinputs |   |   | Significantunobservableinputs |   |   |   |   |
|                                   |   | (Level      1)                                                                    |   |   | (Level      2) |   |   | (Level      3) |   |   | Total |   |
| Common      collective trust funds     |   | $                                                                                 | -      |   |   | $ | 162,635 |   |   | $ | - |   |   | $ | 162,635 |   |
| Long-term      asset-backed securities |   |                                                                              | -      |   |   |   | 82,370 |   |   |   | - |   |   |   | 82,370 |   |
| Money      market funds                |   |                                                                              | 1,490  |   |   |   | - |   |   |   | - |   |   |   | 1,490 |   |
| Preferred      stock                   |   |                                                                              | -      |   |   |   | 88 |   |   |   | - |   |   |   | 88 |   |
| Limited      partnership interests     |   |                                                                              | -      |   |   |   | - |   |   |   | 4,495 |   |   |   | 4,495 |   |
| Total                                  |   | $                                                                                 | 1,490  |   |   | $ | 245,093 |   |   | $ | 4,495 |   |   | $ | 251,078 |   |

|                                               |   | Fair      Value Measurements UsingSignificant Unobservable Inputs      (Level 3) |   |
|----------------------------------------------------|--------|----------------------------------------------------------------------------------|--------|
|                                               |   | Limitedpartnershipinterests                                                      |   |   | Long-termasset-backedsecurities |   |   | Total |   |
| Balance,      December 31, 2008                    |   | $                                                                                | 2,750  |   |   | $ | 3,627 |   |   | $ | 6,377 |   |
| Actual      return on plan assets:                 |   |                                                                             |   |   |   |   |   |   |   |   |   |   |
| Relating      to assets held at the reporting date |   |                                                                             | 142    |   |   |   | - |   |   |   | 142 |   |
| Purchases,      sales and settlements              |   |                                                                             | 1,603  |   |   |   | - |   |   |   | 1,603 |   |
| Transfers      in (out) of Level 3                 |   |                                                                             | -      |   |   |   | (3,627 | ) |   |   | (3,627 | ) |
| Balance,      December 31, 2009                    |   | $                                                                                | 4,495  |   |   | $ | - |   |   | $ | 4,495 |   |

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|                   |   | December      31, 2010 |   |
|------------------------|--------|------------------------|--------|
| Equity      securities |   | 25%      - 75%         |   |
| Debt      securities   |   | 25%      - 75%         |   |
| Other                  |   | 0%      - 15%          |   |

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Table of Contents

|                                                       |   | Year      Ended December 31, 2009 |    |
|------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                       |   | 2009                              |    |   | 2008 |   |   | 2007 |   |
| Current                                                    |   | $                                 | (47,842 | ) |   | $ | 14,828 |   |   | $ | 60,813 |   |
| Deferred                                                   |   |                              | 93,950  |   |   |   | 81,010 |   |   |   | 57,978 |   |
| Total      income tax provision from continuing operations |   | $                                 | 46,108  |   |   | $ | 95,838 |   |   | $ | 118,791 |   |

|                                                                             |   | Year      Ended December 31, |   |
|----------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                             |   | 2009                         |   |   | 2008 |   |   | 2007 |   |
| Statutory      federal income tax rate                                           |   |                         | 35.0   | % |   |   | 35.0 | % |   |   | 35.0 | % |
| Income      tax effect of:                                                       |   |                         |   |   |   |   |   |   |   |   |   |   |
| Investment      income not subject to federal tax                                |   |                         | (4.9   | %) |   |   | (1.4 | %) |   |   | (1.6 | %) |
| Tax      credits                                                                 |   |                         | (4.9   | %) |   |   | (2.5 | %) |   |   | (2.8 | %) |
| State      income taxes, net of federal benefit                                  |   |                         | (2.8   | %) |   |   | 1.1 | % |   |   | 0.5 | % |
| Provision      for policyholders' share of earnings on participating    business |   |                         | 0.3    | % |   |   | (13.2 | %) |   |   | 2.0 | % |
| Prior      period adjustment                                                     |   |                         | 1.7    | % |   |   | (0.3 | %) |   |   | 1.4 | % |
| Income      tax contingency provisions                                           |   |                         | 0.9    | % |   |   | 1.0 | % |   |   | 2.0 | % |
| Other,      net                                                                  |   |                         | 2.1    | % |   |   | (2.0 | %) |   |   | (3.4 | %) |
| Effective      federal income tax rate from continuing operations                |   |                         | 27.4   | % |   |   | 17.7 | % |   |   | 33.1 | % |

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| Balance,      January 1, 2008                        |   | $      | 61,286  |   |
|------------------------------------------------------|--------|--------|---------|--------|
| Additions      for tax positions in the current year |   |   | 6,600   |   |
| Reductions      for tax positions in current year    |   |   | (1,935  | )      |
| Additions      for tax positions in prior years      |   |   | 17,349  |   |
| Reductions      for tax positions in prior years     |   |   | (23,221 | )      |
| Balance,      December 31, 2008                      |   |   | 60,079  |   |
| Additions      for tax positions in the current year |   |   | 24,843  |   |
| Reductions      for tax positions in current year    |   |   | (2,670  | )      |
| Reductions      for tax positions in prior years     |   |   | (862    | )      |
| Balance,      December 31, 2009                      |   | $      | 81,390  |   |

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|                                        |   | December      31, |    |
|---------------------------------------------|--------|-------------------|---------|
|                                        |   | 2009              |    |   | 2008 |   |
|                                        |   | Deferred          |    |   | Deferred |   |   | Deferred |   |   | Deferred |   |
|                                        |   | Tax      Asset    |    |   | Tax      Liability |   |   | Tax      Asset |   |   | Tax      Liability |   |
| Policyholder      reserves                  |   | $                 | -       |   |   | $ | 278,700 |   |   | $ | - |   |   | $ | 105,049 |   |
| Deferred      acquisition costs             |   |              | -       |   |   |   | 168,255 |   |   |   | - |   |   |   | 144,069 |   |
| Investment      assets                      |   |              | 244,168 |   |   |   | - |   |   |   | 542,104 |   |   |   | - |   |
| Policyholder      dividends                 |   |              | 19,861  |   |   |   | - |   |   |   | 20,298 |   |   |   | - |   |
| Net      operating loss carryforward        |   |              | 212,635 |   |   |   | - |   |   |   | 267,074 |   |   |   | - |   |
| Pension      plan accrued benefit liability |   |              | 21,330  |   |   |   | - |   |   |   | 39,571 |   |   |   | - |   |
| Goodwill                                    |   |              | -       |   |   |   | 22,426 |   |   |   | - |   |   |   | 19,833 |   |
| Experience      rated refunds               |   |              | 87,397  |   |   |   | - |   |   |   | 29,086 |   |   |   | - |   |
| Other                                       |   |              | 9,868   |   |   |   | - |   |   |   | - |   |   |   | 51,383 |   |
| Total      deferred taxes                   |   | $                 | 595,259 |   |   | $ | 469,381 |   |   | $ | 898,133 |   |   | $ | 320,334 |   |

| Year  |   | Amount |    |
|-------|--------|--------|---------|
| 2020  |   | $      | 170,077 |   |
| 2021  |   |   | 113,002 |   |
| 2022  |   |   | 136,796 |   |
| 2023  |   |   | 81,693  |   |
| Total |   | $      | 501,568 |   |

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|                                                              |   | Year      Ended December 31, 2009 |      |
|-------------------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                              |   | Individual                        |      |   | Retirement |   |   |   |   |   |   |   |
|                                                              |   | Markets                           |      |   | Services |   |   | Other |   |   | Total |   |
| Revenue:                                                          |   |                              |      |   |   |   |   |   |   |   |   |   |
| Premium      income                                               |   | $                                 | 428,142   |   |   | $ | 2,949 |   |   | $ | 129,161 |   |   | $ | 560,252 |   |
| Fee      income                                                   |   |                              | 49,845    |   |   |   | 331,242 |   |   |   | 5,114 |   |   |   | 386,201 |   |
| Net      investment income                                        |   |                              | 718,040   |   |   |   | 383,446 |   |   |   | 47,598 |   |   |   | 1,149,084 |   |
| Net      realized losses on investments                           |   |                              | (38,382   | ) |   |   | (23,239 | ) |   |   | (5,919 | ) |   |   | (67,540 | ) |
| Total      revenues                                               |   |                              | 1,157,645 |   |   |   | 694,398 |   |   |   | 175,954 |   |   |   | 2,027,997 |   |
| Benefits      and expenses:                                       |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Policyholder      benefits                                        |   |                              | 982,465   |   |   |   | 231,648 |   |   |   | 112,691 |   |   |   | 1,326,804 |   |
| Operating      expenses                                           |   |                              | 101,662   |   |   |   | 360,164 |   |   |   | 70,823 |   |   |   | 532,649 |   |
| Total      benefits and expenses                                  |   |                              | 1,084,127 |   |   |   | 591,812 |   |   |   | 183,514 |   |   |   | 1,859,453 |   |
| Income      (loss) from continuing operations before income taxes |   |                              | 73,518    |   |   |   | 102,586 |   |   |   | (7,560 | ) |   |   | 168,544 |   |
| Income      tax expense                                           |   |                              | 18,830    |   |   |   | 27,366 |   |   |   | (88 | ) |   |   | 46,108 |   |
| Income      (loss) from continuing operations                     |   | $                                 | 54,688    |   |   | $ | 75,220 |   |   | $ | (7,472 | ) |   | $ | 122,436 |   |

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|                                     |   | December      31, 2009 |       |
|------------------------------------------|--------|------------------------|------------|
|                                     |   | Individual             |       |   | Retirement |   |   |   |   |   |   |   |
|                                     |   | Markets                |       |   | Services |   |   | Other |   |   | Total |   |
| Assets:                                  |   |                   |       |   |   |   |   |   |   |   |   |   |
| Investments                              |   | $                      | 11,907,136 |   |   | $ | 7,101,489 |   |   | $ | 1,367,403 |   |   | $ | 20,376,028 |   |
| Other      assets                        |   |                   | 1,430,349  |   |   |   | 853,069 |   |   |   | 164,260 |   |   |   | 2,447,678 |   |
| Separate      account assets             |   |                   | 4,598,607  |   |   |   | 14,288,294 |   |   |   | - |   |   |   | 18,886,901 |   |
| Assets      from continuing operations   |   |                   | 17,936,092 |   |   |   | 22,242,852 |   |   |   | 1,531,663 |   |   |   | 41,710,607 |   |
| Assets      from discontinued operations |   |                   | -          |   |   |   | - |   |   |   | - |   |   |   | 87,719 |   |
| Total      assets                        |   | $                      | 17,936,092 |   |   | $ | 22,242,852 |   |   | $ | 1,531,663 |   |   | $ | 41,798,326 |   |

|                                                       |   | Year      Ended December 31, 2008 |      |
|------------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                       |   | Individual                        |      |   | Retirement |   |   |   |   |   |   |   |
|                                                       |   | Markets                           |      |   | Services |   |   | Other |   |   | Total |   |
| Revenue:                                                   |   |                              |      |   |   |   |   |   |   |   |   |   |
| Premium      income                                        |   | $                                 | 377,525   |   |   | $ | 2,291 |   |   | $ | 145,321 |   |   | $ | 525,137 |   |
| Fee      income                                            |   |                              | 55,852    |   |   |   | 368,536 |   |   |   | 4,833 |   |   |   | 429,221 |   |
| Net      investment income                                 |   |                              | 692,193   |   |   |   | 351,585 |   |   |   | 34,691 |   |   |   | 1,078,469 |   |
| Net      realized gains (losses) on investments            |   |                              | (11,500   | ) |   |   | (10,165 | ) |   |   | (31 | ) |   |   | (21,696 | ) |
| Total      revenues                                        |   |                              | 1,114,070 |   |   |   | 712,247 |   |   |   | 184,814 |   |   |   | 2,011,131 |   |
| Benefits      and expenses:                                |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Policyholder      benefits                                 |   |                              | 889,967   |   |   |   | 229,948 |   |   |   | (172,327 | ) |   |   | 947,588 |   |
| Operating      expenses                                    |   |                              | 108,702   |   |   |   | 324,500 |   |   |   | 88,996 |   |   |   | 522,198 |   |
| Total      benefits and expenses                           |   |                              | 998,669   |   |   |   | 554,448 |   |   |   | (83,331 | ) |   |   | 1,469,786 |   |
| Income      from continuing operations before income taxes |   |                              | 115,401   |   |   |   | 157,799 |   |   |   | 268,145 |   |   |   | 541,345 |   |
| Income      tax expense                                    |   |                              | 35,846    |   |   |   | 41,023 |   |   |   | 18,969 |   |   |   | 95,838 |   |
| Income      from continuing operations                     |   | $                                 | 79,555    |   |   | $ | 116,776 |   |   | $ | 249,176 |   |   | $ | 445,507 |   |

|                                     |   | December      31, 2008 |       |
|------------------------------------------|--------|------------------------|------------|
|                                     |   | Individual             |       |   | Retirement |   |   |   |   |   |   |   |
|                                     |   | Markets                |       |   | Services |   |   | Other |   |   | Total |   |
| Assets:                                  |   |                   |       |   |   |   |   |   |   |   |   |   |
| Investments                              |   | $                      | 10,653,738 |   |   | $ | 5,935,760 |   |   | $ | 1,492,175 |   |   | $ | 18,081,673 |   |
| Other      assets                        |   |                   | 1,678,000  |   |   |   | 934,902 |   |   |   | 235,023 |   |   |   | 2,847,925 |   |
| Separate      account assets             |   |                   | 4,718,758  |   |   |   | 10,403,185 |   |   |   | - |   |   |   | 15,121,943 |   |
| Assets      from continuing operations   |   |                   | 17,050,496 |   |   |   | 17,273,847 |   |   |   | 1,727,198 |   |   |   | 36,051,541 |   |
| Assets      from discontinued operations |   |                   | -          |   |   |   | - |   |   |   | - |   |   |   | 124,089 |   |
| Total      assets                        |   | $                      | 17,050,496 |   |   | $ | 17,273,847 |   |   | $ | 1,727,198 |   |   | $ | 36,175,630 |   |

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|                                                              |   | Year      Ended December 31, 2007 |       |
|-------------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                              |   | Individual                        |       |   | Retirement |   |   |   |   |   |   |   |
|                                                              |   | Markets                           |       |   | Services |   |   | Other |   |   | Total |   |
| Revenue:                                                          |   |                              |       |   |   |   |   |   |   |   |   |   |
| Premium      income                                               |   | $                                 | (1,027,417 | ) |   | $ | 4,729 |   |   | $ | 165,421 |   |   | $ | (857,267 | ) |
| Fee      income                                                   |   |                              | 69,535     |   |   |   | 388,959 |   |   |   | 4,771 |   |   |   | 463,265 |   |
| Net      investment income                                        |   |                              | 759,037    |   |   |   | 350,382 |   |   |   | 30,122 |   |   |   | 1,139,541 |   |
| Net      realized gains (losses) on investments                   |   |                              | (8,081     | ) |   |   | 4,885 |   |   |   | 1,168 |   |   |   | (2,028 | ) |
| Total      revenues                                               |   |                              | (206,926   | ) |   |   | 748,955 |   |   |   | 201,482 |   |   |   | 743,511 |   |
| Benefits      and expenses:                                       |   |                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Policyholder      benefits                                        |   |                              | (577,592   | ) |   |   | 224,413 |   |   |   | 128,315 |   |   |   | (224,864 | ) |
| Operating      expenses                                           |   |                              | 190,721    |   |   |   | 338,677 |   |   |   | 80,311 |   |   |   | 609,709 |   |
| Total      benefits and expenses                                  |   |                              | (386,871   | ) |   |   | 563,090 |   |   |   | 208,626 |   |   |   | 384,845 |   |
| Income      (loss) from continuing operations before income taxes |   |                              | 179,945    |   |   |   | 185,865 |   |   |   | (7,144 | ) |   |   | 358,666 |   |
| Income      tax expense                                           |   |                              | 59,863     |   |   |   | 58,474 |   |   |   | 454 |   |   |   | 118,791 |   |
| Income      (loss) from continuing operations                     |   | $                                 | 120,082    |   |   | $ | 127,391 |   |   | $ | (7,598 | ) |   | $ | 239,875 |   |

|                         |   | Year      ended December 31, |   |
|------------------------------|--------|------------------------------|--------|
|                         |   | 2009                         |   |   | 2008 |   |   | 2007 |   |
| Continuing      operations   |   | $                            | 2,181  |   |   | $ | 3,143 |   |   | $ | 3,816 |   |
| Discontinued      operations |   |                         | -      |   |   |   | 1,980 |   |   |   | - |   |
|                         |   | $                            | 2,181  |   |   | $ | 5,123 |   |   | $ | 3,816 |   |

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|                                |   |                    |      |   | Weighted      Average             |   |
|-------------------------------------|--------|-------------------------|-----------|--------|-----------------------------------|--------|
|                                |   | SharesUnder      Option |      |   | ExercisePrice(Whole      Dollars) |   |   | RemainingContractualTerm      (Years) |   |   | AggregateIntrinsicValue      1 |   |
| Outstanding,      January 1, 2009   |   |                    | 4,317,541 |   |                              | $      | 19.47 |   |   |   |   |   |   |   |
| Exercised                           |   |                    | (572,239  | )      |                              |   | 11.67 |   |   |   |   |   |   |   |
| Outstanding,      December 31, 2009 |   |                    | 3,745,302 |   |                              |   | 24.30 |   |   |   | 4.8 |   |   |   | 15,247 |   |
|                                |   |                    |      |   |                              |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |                    |      |   |                              |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |                    |      |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Vested      and expected to vest,   |   |                    |      |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2009              |   |                    | 3,739,342 |   |                              | $      | 24.29 |   |   |   | 4.8 |   |   | $ | 15,247 |   |
|                                |   |                    |      |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable,      December 31, 2009 |   |                    | 2,828,902 |   |                              | $      | 21.96 |   |   |   | 3.9 |   |   | $ | 15,247 |   |

|                                        |   | Year      Ended        |   |
|---------------------------------------------|--------|------------------------|--------|
|                                        |   | December      31, 2009 |   |
| Intrinsic      value of options exercised 1 |   | $                      | 7,039  |   |
| Fair      value of options vested           |   |                   | 1,361  |   |

| Year      Ended December 31, |   | Related      PartyNotes |    |   | OperatingLeases |   |   | TotalDebt      and LeaseObligations |   |
|------------------------------|--------|-------------------------|---------|--------|-----------------|--------|--------|-------------------------------------|--------|
| 2010                         |   | $                       | -       |   |            | $      | 11,872 |                                |   | $ | 11,872 |   |
| 2011                         |   |                    | -       |   |            |   | 4,315  |                                |   |   | 4,315 |   |
| 2012                         |   |                    | -       |   |            |   | 3,329  |                                |   |   | 3,329 |   |
| 2013                         |   |                    | -       |   |            |   | 2,018  |                                |   |   | 2,018 |   |
| 2014                         |   |                    | -       |   |            |   | 2,941  |                                |   |   | 2,941 |   |
| Thereafter                   |   |                    | 528,400 |   |            |   | 1,227  |                                |   |   | 529,627 |   |

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|                                                     |   | As      of and for the year ended December 31, 2009 |       |
|----------------------------------------------------------|--------|-----------------------------------------------------|------------|
| Operations:                                              |   | IndividualMarketsSegment                            |       |   | RetirementServicesSegment |   |   | OtherSegment |   |   | Total |   |
| Deferred      acquisition costs                          |   | $                                                   | 174,360    |   |   | $ | 258,015 |   |   | $ | - |   |   | $ | 432,375 |   |
| Future      policy benefits, losses, claims and expenses |   |                                                | 11,598,641 |   |   |   | 6,994,319 |   |   |   | 341,688 |   |   |   | 18,934,648 |   |
| Unearned      premium reserves                           |   |                                                | 37,912     |   |   |   | - |   |   |   | - |   |   |   | 37,912 |   |
| Other      policy claims and benefits payable            |   |                                                | 689,377    |   |   |   | 319 |   |   |   | 28,349 |   |   |   | 718,045 |   |
| Premium      income                                      |   |                                                | 428,142    |   |   |   | 2,949 |   |   |   | 129,161 |   |   |   | 560,252 |   |
| Net      investment income                               |   |                                                | 718,040    |   |   |   | 383,446 |   |   |   | 47,598 |   |   |   | 1,149,084 |   |
| Benefits,      claims, losses and settlement expenses    |   |                                                | 982,465    |   |   |   | 231,648 |   |   |   | 112,691 |   |   |   | 1,326,804 |   |
| Amortization      of deferred acquisition costs          |   |                                                | 16,221     |   |   |   | 48,616 |   |   |   | - |   |   |   | 64,837 |   |
| Other      operating expenses                            |   |                                                | 85,441     |   |   |   | 311,548 |   |   |   | 70,823 |   |   |   | 467,812 |   |

|                                                        |   | As      of and for the year ended December 31, 2008 |       |
|-------------------------------------------------------------|--------|-----------------------------------------------------|------------|
| Operations:                                                 |   | IndividualMarketsSegment                            |       |   | RetirementServicesSegment |   |   | OtherSegment |   |   | Total |   |
| Deferred      acquisition costs                             |   | $                                                   | 255,148    |   |   | $ | 403,172 |   |   | $ | - |   |   | $ | 658,320 |   |
| Future      policy benefits, losses,claims and expenses (1) |   |                                                | 11,181,058 |   |   |   | 6,568,078 |   |   |   | 320,641 |   |   |   | 18,069,777 |   |
| Unearned      premium reserves (1)                          |   |                                                | 35,871     |   |   |   | - |   |   |   | - |   |   |   | 35,871 |   |
| Other      policy claims and benefits payable               |   |                                                | 657,352    |   |   |   | 306 |   |   |   | 25,264 |   |   |   | 682,922 |   |
| Premium      income                                         |   |                                                | 377,525    |   |   |   | 2,291 |   |   |   | 145,321 |   |   |   | 525,137 |   |
| Net      investment income                                  |   |                                                | 692,193    |   |   |   | 351,585 |   |   |   | 34,691 |   |   |   | 1,078,469 |   |
| Benefits,      claims, losses and settlement expenses       |   |                                                | 889,967    |   |   |   | 229,948 |   |   |   | (172,327 | ) |   |   | 947,588 |   |
| Amortization      of deferred acquisition costs             |   |                                                | 21,081     |   |   |   | 34,470 |   |   |   | - |   |   |   | 55,551 |   |
| Other      operating expenses                               |   |                                                | 87,621     |   |   |   | 290,030 |   |   |   | 88,996 |   |   |   | 466,647 |   |

|                                                  |   | For      the year ended December 31, 2007 |       |
|-------------------------------------------------------|--------|-------------------------------------------|------------|
| Operations:                                           |   | IndividualMarketsSegment                  |       |   | RetirementServicesSegment |   |   | OtherSegment |   |   | Total |   |
| Premium      income                                   |   | $                                         | (1,027,417 | ) |   | $ | 4,729 |   |   | $ | 165,421 |   |   | $ | (857,267 | ) |
| Net      investment income                            |   |                                      | 759,037    |   |   |   | 350,382 |   |   |   | 30,122 |   |   |   | 1,139,541 |   |
| Benefits,      claims, losses and settlement expenses |   |                                      | (577,592   | ) |   |   | 224,413 |   |   |   | 128,315 |   |   |   | (224,864 | ) |
| Amortization      of deferred acquisition costs       |   |                                      | 104,345    |   |   |   | 24,230 |   |   |   | - |   |   |   | 128,575 |   |
| Other      operating expenses                         |   |                                      | 86,376     |   |   |   | 314,447 |   |   |   | 80,311 |   |   |   | 481,134 |   |

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It

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Ite

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10

|                                                               |   |   |   | Served      as a |   |                                                                                                                |
|--------------------------------------------------------------------|--------|--------|--------|------------------|--------|---------------------------------------------------------------------------------------------------------------------|
|                                                               |   |   |   | Director         |   |                                                                                                                |
| Director                                                           |   | Age    |   | from             |   | Principal      Occupation(s) for Last Five Years                                                                    |
| James      Balog                                                   |   | 81     |   | 1993             |   | Corporate      Director                                                                                             |
| 1  2  5  6                           |   |   |   |             |   |                                                                                                                |
|                                                               |   |   |   |             |   |                                                                                                                |
| John      L. Bernbach                                              |   | 66     |   | 2006             |   | Chairman      and CEO, The Bernbach Group, Inc.                                                                     |
| 5  6                                                     |   |   |   |             |   |                                                                                                                |
|                                                               |   |   |   |             |   |                                                                                                                |
| André      Desmarais, O.C.                                    |   | 53     |   | 1997             |   | President      and Co-Chief Executive Officer, Power Corporation; Deputy Chairman, Power      Financial Corporation |
| 1  2  4  6  7  8 |   |   |   |             |   |                                                                                                                |

----

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|                                                               |   |   |   | Served      as a |   |                                                                                                                                                                                                                                                                          |
|--------------------------------------------------------------------|--------|--------|--------|------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                               |   |   |   | Director         |   |                                                                                                                                                                                                                                                                          |
| Director                                                           |   | Age    |   | from             |   | Principal      Occupation(s) for Last Five Years                                                                                                                                                                                                                              |
| Paul      Desmarais, Jr.                                           |   | 55     |   | 1991             |   | Chairman      and Co-Chief Executive                                                                                                                                                                                                                                          |
| 1  2  4  6  7  8 |   |   |   |             |   | Officer,      Power Corporation; Chairman, Power FinancialCorporation                                                                                                                                                                                                         |
|                                                               |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
| Mitchell      T.G. Graye                                           |   | 54     |   | 2008             |   | President      and Chief Executive Officer of the Company                                                                                                                                                                                                                     |
| 1  2                                                     |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
|                                                               |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
| Alain      Louvel                                                  |   | 64     |   | 2006             |   | Corporate      Director since 2006                                                                                                                                                                                                                                            |
| 3  5                                                     |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
|                                                               |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
| Raymond      L. McFeetors                                          |   | 65     |   | 2006             |   | Chairman      of the Board of the Company; Chairman of the Board of Lifeco, Great-West      Life, CLAC and London Life Insurance Company                                                                                                                                      |
| 1  2  4  6  8              |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
|                                                               |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
| Jerry      E.A. Nickerson                                          |   | 73     |   | 1994             |   | Chairman      of the Board, H.B.Nickerson & Sons Limited                                                                                                                                                                                                                  |
| 3  8                                                     |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
|                                                               |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
| R.      Jeffrey Orr                                                |   | 51     |   | 2005             |   | President      and Chief Executive Officer, Power Financial Corporation since May2005;      previously President and Chief Executive Officer of IGM Financial      Inc.                                                                                                       |
| 1  2  4  6  8              |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
|                                                               |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
| Michel      Plessis-Bélair, F.C.A.                            |   | 67     |   | 1991             |   | Vice      Chairman, Power Corporation                                                                                                                                                                                                                                         |
| 3  8                                                     |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
|                                                               |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
| Henri-Paul      Rousseau                                           |   | 61     |   | 2009             |   | Vice      Chairman, Power Corporation since January 2009; previously President and      Chief Executive Officer of la Caisse de dépot et placement du      Québec                                                                                                   |
| 1  2  8                                        |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
|                                                               |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
| Raymond      Royer                                                 |   | 71     |   | 2009             |   | Corporate      Director since December 2008; previously President and Chief Executive      Officer of Domtar Inc.                                                                                                                                                             |
| 3  8                                                     |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
|                                                               |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
| Philip      K. Ryan                                                |   | 53     |   | 2008             |   | Executive      Vice President and Chief Financial Officer, Power Corporation since      January 2008; Executive Vice President and Chief Financial Officer, Power      Financial Corporation since January 2008; previously Chief Financial      Officer, Credit Suisse Group |
| 1  2  3  8                           |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
|                                                               |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
| T.      Timothy Ryan, Jr.                                          |   | 64     |   | 2009             |   | President      and Chief Executive Officer of the Securities Industry and Financial      Markets Association since January 2008; previously Vice Chairman of      JPMorgan Chase                                                                                              |
| 1  2                                                     |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
|                                                               |   |   |   |             |   |                                                                                                                                                                                                                                                                          |
| Brian      E. Walsh                                                |   | 56     |   | 1995             |   | Managing      Partner, Saguenay Capital, LLC                                                                                                                                                                                                                                  |
| 1  2  4  6  8              |   |   |   |             |   |                                                                                                                                                                                                                                                                          |

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| A.      Desmarais | CITIC      Pacific Limited |
|-------------------|----------------------------|

| P.      Desmarais, Jr. | TOTAL      S.A. |
|------------------------|-----------------|

| M.T.G.      Graye | Maxim      Series Fund, Inc. |
|-------------------|------------------------------|

| P.K.      Ryan | Panagora      Asset Management, Inc. |
|----------------|--------------------------------------|

| T.      T. Ryan, Jr. | Lloyds      Banking Group |
|----------------------|---------------------------|

| B.E.      Walsh | Saguenay      Capital, LLC |
|-----------------|----------------------------|

10.2  Identification 

|                           |   |   |   | Served      as Executive |                        |                                             |
|--------------------------------|--------|--------|--------|--------------------------|-----------------------------|--------------------------------------------------|
| Executive                      |   | Age    |   | Officer      from        |                        | Principal      Occupation(s) for Last Five Years |
| Mitchell      T.G. Graye       |   | 54     |   | 1997                     |                        | President      and Chief Executive Officer of    |
| President      and Chief       |   |   |   |                     |                        | the      Company                                 |
| Executive      Officer         |   |   |   |                     |                        |                                             |
|                           |   |   |   |                     |                        |                                             |
| Charles      P. Nelson         |   | 49     |   | 2008                     |                        | President,      Great-West Retirement            |
| President,      Great-West     |   |   |   |                     |                        | Services      of the Company                     |
| Retirement      Services       |   |   |   |                     |                        |                                             |
|                           |   |   |   |                     |                        |                                             |
| S.      Mark Corbett           |   | 50     |   | 2008                     |                        | Executive      Vice President and Chief          |
| Executive      Vice            |   |   |   |                     |                        | Investment      Officer of the Company           |
| President      and Chief       |   |   |   |                     |                        |                                             |
| Investment      Officer        |   |   |   |                     |                        |                                             |
|                           |   |   |   |                     |                        |                                             |
| Robert      K. Shaw            |   | 54     |   | 2008                     |                        | Executive      Vice President, Individual        |
| Executive      Vice President, |   |   |   |                     | Markets      of the Company |
| Individual      Markets        |   |   |   |                     |                        |                                             |
|                           |   |   |   |                     |                        |                                             |
| James      L. McCallen         |   | 59     |   | 2008                     |                        | Senior      Vice President and Chief             |
| Senior      Vice President     |   |   |   |                     |                        | Financial      Officer of the Company            |
| and      Chief Financial       |   |   |   |                     |                        |                                             |
| Officer                        |   |   |   |                     |                        |                                             |
|                           |   |   |   |                     |                        |                                             |
| Graham      R. McDonald        |   | 63     |   | 2008                     |                        | Senior      Vice President, Corporate            |
| Senior      Vice President,    |   |   |   |                     |                        | Resources      of the Company                    |
| Corporate      Resources       |   |   |   |                     |                        |                                             |
|                           |   |   |   |                     |                        |                                             |
| Scot      A. Miller            |   | 51     |   | 2008                     |                        | Senior      Vice President and Chief             |
| Senior      Vice President     |   |   |   |                     |                        | Information      Officer of the Company          |
| and      Chief Information     |   |   |   |                     |                        |                                             |
| Officer                        |   |   |   |                     |                        |                                             |
|                           |   |   |   |                     |                        |                                             |
| Richard      G. Schultz        |   | 49     |   | 2008                     |                        | Senior      Vice President, General Counsel      |
| Senior      Vice President,    |   |   |   |                     |                        | and      Secretary of the Company                |
| General      Counsel and       |   |   |   |                     |                        |                                             |
| Secretary                      |   |   |   |                     |                        |                                             |

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.3  Code 

10.4  Security 

10

tem 

11.1

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| · | base      salary; |
|--------|-------------------|

| · | annual      incentive bonus; |
|--------|------------------------------|

| · | options      for Lifeco common shares; and |
|--------|--------------------------------------------|

| · | retirement      benefits. |
|--------|---------------------------|

| ELEMENT                                             |   | PRIMARY      ROLE                                                                                               |
|-----------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------|
|                                                |   |                                                                                                            |
| Base      Salary                                    |   | Reflect      skills, competencies, experience and performance appraisal of the Named      Executive Officers    |
| Annual      Incentive Bonus                         |   | Reflect      performance for the year                                                                           |
| Long-Term      Incentive (Lifeco Stock Option Plan) |   | Link      interests of Named Executive Officers with interests of the      shareholders                         |
| Retirement      Benefits                            |   | Provide      for appropriate replacement income upon retirement based on years of      service with the Company |

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11.2  Compensation 

1

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11.4

| Name      and Principal Position | Year       |   | Salary      ($) |    |   | Bonus      ($) |   |      | Option      Awards ($)(4) |   |   | Non-Equity      Incentive Plan Compensation ($)(5) |   |   | Change      in Pension Value and Nonqualified Deferred Compensation Earnings      ($)(6) |      |   | All      Other Compensation ($)(7) |   |    | Total      ($) |   |
|----------------------------------|------------|--------|-----------------|---------|--------|----------------|--------|-----------|---------------------------|--------|--------|----------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------|-----------|--------|------------------------------------|--------|---------|----------------|--------|
|                             |       |   |            |    |   |           |   |      |                      |   |   |                                               |   |   |                                                                                     |      |   |                               |   |    |           |   |
| Mitchell      T.G. Graye         | 2009       |   |            | 900,000 |   |           |   | -         |                      |   |   | 327,962                                            |   |   |                                                                                     | 1,125,000 |   |                               |   | 298,978 |           |   |   | 136,399 |   |   |   | 2,788,339 |   |
| President      and Chief         | 2008       |   |            | 788,333 |   |           |   | 300,000   | (1)                  |   |   | 291,760                                            |   |   |                                                                                     | 1,062,500 |   |                               |   | 262,256 |           |   |   | 693,727 |   |   |   | 4,898,576 |   |
| Executive      Officer           |       |   |            |    |   |           |   | 1,500,000 | (2)                  |   |   |                                               |   |   |                                                                                     |      |   |                               |   |    |           |   |   |   |   |   |   |   |   |
|                             |  2007 |   |            | 658,750 |   |           |   | -    |                      |   |   | 291,760                                            |   |   |                                                                                     | 658,750   |   |                               |   | -  |           |   |   | 20,500 |   |   |   | 1,629,760 |   |
|                             |       |   |            |    |   |           |   |      |                      |   |   |                                               |   |   |                                                                                     |      |   |                               |   |    |           |   |   |   |   |   |   |   |   |
| James      L. McCallen           | 2009       |   |            | 357,500 |   |           |   | -         |                      |   |   | 12,367                                             |   |   |                                                                                     | 255,612   |   |                               |   | 122,400 |           |   |   | 21,435 |   |   |   | 769,314 |   |
| Senior      Vice President       | 2008       |   |            | 319,130 |   |           |   | 51,000    | (1)                  |   |   | 28,640                                             |   |   |                                                                                     | 220,200   |   |                               |   | 158,469 |           |   |   | 19,598 |   |   |   | 877,037 |   |
| and      Chief Financial         |       |   |            |    |   |           |   | 80,000    | (2)                  |   |   |                                               |   |   |                                                                                     |      |   |                               |   |    |           |   |   |   |   |   |   |   |   |
| Officer                          |       |   |            |    |   |           |   |      |                      |   |   |                                               |   |   |                                                                                     |      |   |                               |   |    |           |   |   |   |   |   |   |   |   |
|                             |       |   |            |    |   |           |   |      |                      |   |   |                                               |   |   |                                                                                     |      |   |                               |   |    |           |   |   |   |   |   |   |   |   |
| Charles      P. Nelson           | 2009       |   |            | 611,250 |   |           |   | -         |                      |   |   | 64,363                                             |   |   |                                                                                     | 611,250   |   |                               |   | 207,582 |           |   |   | 80,408 |   |   |   | 1,574,853 |   |
| President,      Great-West       | 2008       |   |            | 565,000 |   |           |   | 92,000    | (1)                  |   |   | 28,160                                             |   |   |                                                                                     | 452,000   |   |                               |   | 233,822 |           |   |   | 53,560 |   |   |   | 1,424,542 |   |
| Retirement      Services         | 2007       |   |            | 455,334 |   |           |   | 50,000    | (3)                  |   |   | -                                                  |   |   |                                                                                     | 341,500   |   |                               |   | -       |           |   |   | 18,039 |   |   |   | 864,873 |   |
|                             |       |   |            |    |   |           |   |      |                      |   |   |                                               |   |   |                                                                                     |      |   |                               |   |    |           |   |   |   |   |   |   |   |   |
| S.      Mark Corbett             | 2009       |   |            | 475,000 |   |           |   | -         |                      |   |   | 53,284                                             |   |   |                                                                                     | 475,000   |   |                               |   | 61,612  |           |   |   | 21,225 |   |   |   | 1,086,121 |   |
| Executive      Vice              | 2008       |   |            | 389,474 |   |           |   | 100,000   | (1)                  |   |   | 51,680                                             |   |   |                                                                                     | 341,000   |   |                               |   | 76,284  |           |   |   | 19,550 |   |   |   | 1,017,988 |   |
| President      and Chief         |       |   |            |    |   |           |   | 40,000    | (2)                  |   |   |                                               |   |   |                                                                                     |      |   |                               |   |    |           |   |   |   |   |   |   |   |   |
| Investment      Officer          |       |   |            |    |   |           |   |      |                      |   |   |                                               |   |   |                                                                                     |      |   |                               |   |    |           |   |   |   |   |   |   |   |   |
|                             |       |   |            |    |   |           |   |      |                      |   |   |                                               |   |   |                                                                                     |      |   |                               |   |    |           |   |   |   |   |   |   |   |   |
| Robert      K. Shaw              | 2009       |   |            | 412,500 |   |           |   | -         |                      |   |   | -                                                  |   |   |                                                                                     | 371,250   |   |                               |   | 141,913 |           |   |   | 21,025 |   |   |   | 946,688 |   |
| Executive      Vice              | 2008       |   |            | 371,750 |   |           |   | -         |                      |   |   | 28,640                                             |   |   |                                                                                     | 251,000   |   |                               |   | 178,239 |           |   |   | 18,450 |   |   |   | 848,079 |   |
| President,      Individual       |       |   |            |    |   |           |   |      |                      |   |   |                                               |   |   |                                                                                     |      |   |                               |   |    |           |   |   |   |   |   |   |   |   |
| Markets                          |       |   |            |    |   |           |   |      |                      |   |   |                                               |   |   |                                                                                     |      |   |                               |   |    |           |   |   |   |   |   |   |   |   |

| (a) | Mr.      Graye had a change in actuarial present value under the Defined Benefit      Plan of $42,285 and a change in actuarial present value under the SERP of      $256,693. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Mr.      McCallen had a change in actuarial present value under the Defined Benefit      Plan of $122,400. |
|-----|------------------------------------------------------------------------------------------------------------|

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| (c) | Mr.      Nelson had a change in actuarial present value under the Defined Benefit      Plan of $71,840, a change in actuarial present value under the SERP of      $129,460 and above market earnings under the EDCP of      $6,282.  For each of the Named Executive Officers participating      in the EDCP, above average earnings equaled total earnings less 5.02% of      total earnings (5.02% being 120% of the applicable federal long-term rate      at December 31, 2008). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Mr.      Corbett had a change in actuarial present value under the Defined Benefit      Plan of $61,612. |
|-----|----------------------------------------------------------------------------------------------------------|

| (e) | Mr.      Shaw had a change in actuarial present value under the Defined Benefit      Plan of $84,090, a change in actuarial present value under the SERP of      $54,121 and above market earnings under the EDCP of  $3,702. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | The      components of other compensation for each of the Named Executive Officers      are as follows: |
|-----|---------------------------------------------------------------------------------------------------------|

| (a) | Mr.      Graye received (i) a car lease benefit of $16,235; (ii) a perquisites      account reimbursement of $5,000; (iii) a 401(k) Plan employer contribution      of $6,125; and (iv) $109,039 in respect of directors’  fees. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Mr.      McCallen received (i) a car allowance of $9,600; (ii) a perquisites      account reimbursement of $5,710; and (iii) a 401(k) Plan employer      contribution of $6,125. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Mr.      Nelson received (i) a housing benefit of $59,183 (determined by      calculating a lost investment return on the money used by the Company to      contribute toward the purchase of a house for use by Mr. Nelson equal to      the 30-year agency mortgage backed security rate of 6.07% in effect on      June 9, 2008, the purchase date, less a 35% corporate tax rate on income      earned); (ii) a car allowance of $9,600; (iii) a perquisites account      reimbursement of $5,500; and (iv) a 401(k) Plan employer contribution of      $6,125. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Mr.      Corbett received (i) a car allowance of $9,600; (ii) a perquisites account      reimbursement of $5,500; and (iii) a 401(k) plan employer contribution of      $6,125. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Mr.      Shaw received (i) a car allowance of $ 9,400; (ii) a perquisites account      reimbursement of $5,500; and (iii) a 401(k) Plan employer contribution of      $6,125. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

11.5  Grants 

|               |   | Estimated      Future Payouts Under Non-Equity Incentive Plan Awards |   |   |   |   |    |    |   |
|--------------------|--------|----------------------------------------------------------------------|--------|--------|--------|--------|---------|---------|--------|
| Name               |   | Thresholds                                                           |   |   | Target |   |    | Maximum |   |   | All      Other Option Awards: Number of Securities Underlying Options      (#) |   |   | Exercise      or Base Price of Option Awards ($/Share) |   |
| M.T.G.      Graye  |   | $                                                                    | -      |   |   | $      | 900,000 |    |   | $ | 1,125,000 |   |   |   | - |   |   | $ | - |   |
|               |   |                                                                 |   |   |   |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |
| J.L.      McCallen |   |                                                                 | -      |   |   |   | 268,125 |    |   |   | 268,125 |   |   |   | - |   |   |   | - |   |
|               |   |                                                                 |   |   |   |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |
| C.P.      Nelson   |   |                                                                 | -      |   |   |   | 611,250 |    |   |   | 611,250 |   |   |   | - |   |   |   | - |   |
|               |   |                                                                 |   |   |   |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |
| S.M.      Corbett  |   |                                                                 | -      |   |   |   | 475,000 |    |   |   | 475,000 |   |   |   | - |   |   |   | - |   |
|               |   |                                                                 |   |   |   |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |
| R.K.      Shaw     |   |                                                                 | -      |   |   |   | 412,500 |    |   |   | 412,500 |   |   |   | - |   |   |   | - |   |

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|   | (i) | M.T.G.      Graye had an opportunity to earn 100% of annualized year end base salary      if earnings targets were met and up to 125% of annualized year end base      salary if earnings targets were exceeded by specified    amounts; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | J.L.      McCallen had an opportunity to earn up to 75% of base salary earned in      2009 - 40% based on earnings targets, 15% based on expense related targets      and 20% based on specific individualobjectives; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | C.P.      Nelson had an opportunity to earn up to 100% of base salary earned in 2009      -  60% based on earnings targets, 10% based on expense related      targets and 30% based on sales relatedtargets; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | S.M.      Corbett had an opportunity to earn up to 100% of base salary earned in      2009 -  50% based on earnings targets, 10% based on expense      related targets and 40% on specific individual objectives;    and |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | R.K.      Shaw had an opportunity to earn up to 100% of base salary earned in 2009 -      60% based on earnings targets, 10% based on expense related targets and      30% based on sales related targets. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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11.6  Outstanding 

|               |   | Option      Awards                                                          |
|--------------------|--------|-----------------------------------------------------------------------------|
| Name               |   | Number      of Securities Underlying Unexercised Options (#)    Exercisable |   |   | Number      of Securities Underlying Unexercised Options (#)    Unexercisable |   |   | Option      Exercise Price |   | Option      Expiration Date |
|               |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |
| M.T.G.      Graye  |   |                                                                        | 125,002 |   |   |   | - |   |   |   |   |   | $ | 9.68 |   | April      26,2010 |
|               |   |                                                                        | 80,000 |   |   |   | - |   |   |   |   |   |   | 15.25 |   | April      25, 2011 |
|               |   |                                                                        | 100,000 |   |   |   | - |   |   |   |   |   |   | 16.89 |   | July      9, 2013 |
|               |   |                                                                        | 224,000 |   |   |   | 56,000 |   |   |   | (1 | ) |   |   | 25.94 |   | December      13, 2015 |
|               |   |                                                                        | 11,000 |   |   |   | 264,000 |   |   |   | (2 | ) |   |   | 27.19 |   | May      12, 2018 |
|               |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|               |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| J.L.      McCallen |   |                                                                        | 32,830 |   |   |   | - |   |   |   |   |   |   |   | 14.90 |   | December      3, 2011 |
|               |   |                                                                        | 20,000 |   |   |   | - |   |   |   |   |   |   |   | 16.89 |   | July      9, 2013 |
|               |   |                                                                        | 4,000 |   |   |   | 96,000 |   |   |   | (3 | ) |   |   | 27.19 |   | May      12, 2018 |
|               |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| C.P.      Nelson   |   |                                                                        | 120,000 |   |   |   | - |   |   |   |   |   |   |   | 14.90 |   | December      3, 2011 |
|               |   |                                                                        | 13,200 |   |   |   | 96,800 |   |   |   | (4 | ) |   |   | 32.37 |   | February      27, 2017 |
|               |   |                                                                        | 4,400 |   |   |   | 105,600 |   |   |   | (5 | ) |   |   | 24.86 |   | March      24, 2018 |
|               |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| S.M.      Corbett  |   |                                                                        | 80,000 |   |   |   | - |   |   |   |   |   |   |   | 14.90 |   | December      3, 2011 |
|               |   |                                                                        | 20,000 |   |   |   | - |   |   |   |   |   |   |   | 16.89 |   | July      9, 2013 |
|               |   |                                                                        | 10,800 |   |   |   | 79,200 |   |   |   | (6 | ) |   |   | 32.37 |   | February      27, 2017 |
|               |   |                                                                        | 2,000 |   |   |   | 48,000 |   |   |   | (7 | ) |   |   | 27.19 |   | May      12, 2018 |
|               |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| R.K.      Shaw     |   |                                                                        | 100,000 |   |   |   | - |   |   |   |   |   |   |   | 14.90 |   | December      3, 2011 |
|               |   |                                                                        | 20,000 |   |   |   | - |   |   |   |   |   |   |   | 16.89 |   | July      9, 2013 |

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11.7

11.8  Pension 

| Name               |   |   | Plan      Name            |   |   | Number      of Years of Credited Service |   |   | Present      Value of Accumulated Benefit ($) (1) |   |      | Payments      During Last Fiscal Year |   |
|--------------------|--------|--------|---------------------------|--------|--------|------------------------------------------|--------|--------|---------------------------------------------------|--------|-----------|---------------------------------------|--------|
|               |   |   |                      |   |   |                                     |   |   |                                              |   |      |                                  |   |
| M.T.G.      Graye  |   |   | Defined      Benefit Plan |   |   |                                     | 17     |   |                                              | $      | 279,705   |                                  |   | $ | - |   |
|               |   |   | SERP                      |   |   |                                     | 17     |   |                                              |   | 1,038,800 |                                  |   |   | - |   |
|               |   |   |                      |   |   |                                     |   |   |                                              |   |      |                                  |   |   |   |   |
| J.L.      McCallen |   |   | Defined      Benefit Plan |   |   |                                     | 35     |   |                                              |   | 1,222,004 |                                  |   |   | - |   |
|               |   |   |                      |   |   |                                     |   |   |                                              |   |      |                                  |   |   |   |   |
| C.P.      Nelson   |   |   | Defined      Benefit Plan |   |   |                                     | 27     |   |                                              |   | 541,193   |                                  |   |   | - |   |
|               |   |   | SERP                      |   |   |                                     | 27     |   |                                              |   | 619,540   |                                  |   |   | - |   |
|               |   |   |                      |   |   |                                     |   |   |                                              |   |      |                                  |   |   |   |   |
| S.M.      Corbett  |   |   | Defined      Benefit Plan |   |   |                                     | 23     |   |                                              |   | 472,783   |                                  |   |   | - |   |
|               |   |   |                      |   |   |                                     |   |   |                                              |   |      |                                  |   |   |   |   |
| R.K.      Shaw     |   |   | Defined      Benefit Plan |   |   |                                     | 32     |   |                                              |   | 819,122   |                                  |   |   | - |   |
|               |   |   | SERP                      |   |   |                                     | 32     |   |                                              |   | 457,624   |                                  |   |   | - |   |

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1

| Name               | Plan      Name |   | Executive      Contributions in Last Fiscal Year ($)(1) |   |   | Aggregate      Earnings in Last Fiscal Year ($) |   |   | Aggregate      Withdrawls or Distributions ($) |   |   | Aggregate      Balance at Last Fiscal Year End ($) |   |
|--------------------|----------------|--------|---------------------------------------------------------|--------|--------|-------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|----------------------------------------------------|--------|
|               |           |   |                                                    |   |   |                                            |   |   |                                           |   |   |                                               |   |
| J.L.      McCallen | NQDC           |   |                                                    | -      |   |                                            |   | 29,473 |                                           |   |   | -                                                  |   |   |   | 138,318 |   |
|               |           |   |                                                    |   |   |                                            |   |   |                                           |   |   |                                               |   |   |   |   |   |
| C.P.      Nelson   | EDCP           |   |                                                    | -      |   |                                            |   | 23,739 |                                           |   |   | -                                                  |   |   |   | 363,567 |   |
|               |           |   |                                                    |   |   |                                            |   |   |                                           |   |   |                                               |   |   |   |   |   |
| R.K.      Shaw     | NQDC           |   |                                                    | -      |   |                                            |   | 52,555 |                                           |   |   | -                                                  |   |   |   | 234,469 |   |
|               | EDCP           |   |                                                    | -      |   |                                            |   | 14,151 |                                           |   |   | -                                                  |   |   |   | 236,400 |   |

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1

| Name                        |   | Fees      Earned or Paid in Cash ($)(1) |   |   | Stock      Awards ($)(2) |   |   | All      Other Compensation ($)(3) |   |   | Total      ($) |   |
|-----------------------------|--------|-----------------------------------------|--------|--------|--------------------------|--------|--------|------------------------------------|--------|--------|----------------|--------|
| J.      Balog               |   |                                    | 79,883 |   |                     |   | 45,000 |                               |   |   | 156            |   |   |   | 125,039 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| J.L.      Bernbach          |   |                                    | 51,883 |   |                     |   | 45,000 |                               |   |   | 156            |   |   |   | 97,039 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| O.T.      Dackow            |   |                                    | 26,262 |   |                     |   | 15,453 |                               |   |   | 54             |   |   |   | 41,769 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| A.      Desmarais           |   |                                    | 27,826 |   |                     |   | -      |                               |   |   | -              |   |   |   | 27,826 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| P.      Desmarais, Jr.      |   |                                    | 24,348 |   |                     |   | -      |                               |   |   | -              |   |   |   | 24,348 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| M.T.G.      Graye           |   |                                    | 63,883 |   |                     |   | 45,000 |                               |   |   | 156            |   |   |   | 109,039 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| K.P.      Kavanagh          |   |                                    | 10,435 |   |                     |   | -      |                               |   |   | -              |   |   |   | 10,435 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| A.      Louvel              |   |                                    | 56,883 |   |                     |   | 45,000 |                               |   |   | 156            |   |   |   | 102,039 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| W.      Mackness            |   |                                    | 24,560 |   |                     |   | 13,438 |                               |   |   | 47             |   |   |   | 38,044 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| R.L.      McFeetors         |   |                                    | 34,783 |   |                     |   | -      |                               |   |   | -              |   |   |   | 34,783 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| J.E.A.      Nickerson       |   |                                    | 17,391 |   |                     |   | -      |                               |   |   | -              |   |   |   | 17,391 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| D.A.      Nield             |   |                                    | 6,957  |   |                     |   | -      |                               |   |   | -              |   |   |   | 6,957 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| R.J.      Orr               |   |                                    | 34,783 |   |                     |   | -      |                               |   |   | -              |   |   |   | 34,783 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| M.      Plessis-Bélair |   |                                    | 15,652 |   |                     |   | -      |                               |   |   | -              |   |   |   | 15,652 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| H.      P. Rousseau         |   |                                    | 19,130 |   |                     |   | -      |                               |   |   | -              |   |   |   | 19,130 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| R.      Royer               |   |                                    | 8,696  |   |                     |   | -      |                               |   |   | -              |   |   |   | 8,696 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| P.K.      Ryan              |   |                                    | 31,304 |   |                     |   | -      |                               |   |   | -              |   |   |   | 31,304 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| T.T.      Ryan, Jr.         |   |                                    | 41,621 |   |                     |   | 29,547 |                               |   |   | 106            |   |   |   | 71,274 |   |
|                        |   |                                    |   |   |                     |   |   |                               |   |   |           |   |   |   |   |   |
| B.E.      Walsh             |   |                                    | 49,292 |   |                     |   | 15,453 |                               |   |   | 54             |   |   |   | 64,799 |   |

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| Name                        |   | Deferred      Share Units |   |
|-----------------------------|--------|---------------------------|--------|
|                        |   |                      |   |
| J.      Balog               |   |                      | 47,096 |   |
|                        |   |                      |   |   |
| J.L.      Bernbach          |   |                      | 6,712  |   |
|                        |   |                      |   |   |
| A.      Desmarais           |   |                      | 10,713 |   |
|                        |   |                      |   |   |
| P.      Desmarais, Jr.      |   |                      | -      |   |
|                        |   |                      |   |   |
| M.T.G.      Graye           |   |                      | 9,186  |   |
|                        |   |                      |   |   |
| A.      Louvel              |   |                      | 6,556  |   |
|                        |   |                      |   |   |
| R.L.      McFeetors         |   |                      | 5,581  |   |
|                        |   |                      |   |   |
| J.E.A.      Nickerson       |   |                      | -      |   |
|                        |   |                      |   |   |
| R.J.      Orr               |   |                      | 6,178  |   |
|                        |   |                      |   |   |
| M.      Plessis-Bélair |   |                      | -      |   |

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Table of Contents

| Name               |   | Deferred      Share Units |   |
|--------------------|--------|---------------------------|--------|
| H.P.      Rousseau |   |                      | -      |   |
|               |   |                      |   |   |
| R.      Royer      |   |                      | -      |   |
|               |   |                      |   |   |
| P.K.      Ryan     |   |                      | 2,553  |   |
|               |   |                      |   |   |
| T.T.      Ryan     |   |                      | 3,403  |   |
|               |   |                      |   |   |
| B.E.      Walsh    |   |                      | 24,556 |   |

Item 12.

1

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1

| Directors                   |   | Great-West      Lifeco Inc. (1) |      |   | Power      Financial Corporation (2) |                   |    | Power      Corporation of Canada (3) |                |
|-----------------------------|--------|---------------------------------|-----------|--------|--------------------------------------|------------------------|---------|--------------------------------------|---------------------|
|                        |   |                            |      |   |                                 |                   |    |                                 |                |
| J.      Balog               |   |                            | -         |   |                                 |                   | -       |                                 |                |   | - |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                |   |   |   |
| J.L.      Bernbach          |   |                            | -         |   |                                 |                   | -       |                                 |                |   | - |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                |   |   |   |
| A.      Desmarais           |   |                            | 103,318   |   |                                 |                   | 43,200  |                                 |                |   | 1,163,065 |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                | 1,076,063      options |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                |   |   |   |
| P.      Desmarais, Jr.      |   |                            | 100,000   |   |                                 |                   | -       |                                 |                |   | 54,420 |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                | 1,476,063      options |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                |   |   |   |
| M.T.G.      Graye           |   |                            | 6,087     |   |                                 |                   | 75,000  |                                 |                |   | - |   |
|                        |   | 540,002      options            |      |   |                                 |                   |    |                                 |                |   |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                |   |   |   |
| A.      Louvel              |   |                            | -         |   |                                 |                   | -       |                                 |                |   | - |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                |   |   |   |
| R.L.      McFeetors         |   |                            | 1,605,810 |   |                                 |                   | 170,500 |                                 |                |   | 7,335 |   |
|                        |   | 1,900,000      options          |      |   | 514,484      options                 |                   |    |                                 |                |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                |   |   |   |
| J.E.A.      Nickerson       |   |                            | 5,000     |   |                                 |                   | 14,166  |                                 |                |   | 14,572 |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                |   |   |   |
| R.J.      Orr               |   |                            | 20,000    |   |                                 |                   | 400,400 |                                 |                |   | 20,000 |   |
|                        |   |                            |      |   |                                 | 1,772,000      options |    |                                 |                |   |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                |   |   |   |
| M.      Plessis-Bélair |   |                            | 40,000    |   |                                 |                   | 6,000   |                                 |                |   | 162,426 |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                | 181,000      options |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                |   |   |   |
| H.      Rousseau            |   |                            | 2,800     |   |                                 |                   | 5,400   |                                 |                |   | - |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                |   |   |   |
| R.      Royer               |   |                            | 15,000    |   |                                 |                   | 174,000 |                                 |                |   | - |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                |   |   |   |
| P.K.      Ryan              |   |                            | -         |   |                                 | 28,283      options    |    |                                 | 28,977      options |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                |   |   |   |
| T.T.      Ryan, Jr.         |   |                            | -         |   |                                 |                   | -       |                                 |                |   | - |   |
|                        |   |                            |      |   |                                 |                   |    |                                 |                |   |   |   |
| B.E.      Walsh             |   |                            | -         |   |                                 |                   | -       |                                 |                |   | - |   |

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| Named      Executive Officers |   | Great-West      Lifeco Inc. (1) |    |   | Power      Financial Corporation (2) |   |   | Power      Corporation of Canada (3) |   |
|-------------------------------|--------|---------------------------------|---------|--------|--------------------------------------|--------|--------|--------------------------------------|--------|
|                          |   |                            |    |   |                                 |   |   |                                 |   |
| M.T.G.      Graye             |   |                            | 6,087   |   |                                 |   | 75,000 |                                 |   |   | - |   |
|                          |   |                            | 540,002 |   |                                 |   |   |                                 |   |   |   |   |
|                          |   |                            |    |   |                                 |   |   |                                 |   |   |   |   |
| J.L.      McCallen            |   |                            | 14,274  |   |                                 |   | -      |                                 |   |   | - |   |
|                          |   | 56,830      options             |    |   |                                 |   |   |                                 |   |   |   |
|                          |   |                            |    |   |                                 |   |   |                                 |   |   |   |   |
| C.P.      Nelson              |   |                            | 21,951  |   |                                 |   | -      |                                 |   |   | - |   |
|                          |   | 137,600      options            |    |   |                                 |   |   |                                 |   |   |   |
|                          |   |                            |    |   |                                 |   |   |                                 |   |   |   |   |
| S.M.      Corbett             |   |                            | 5,239   |   |                                 |   | -      |                                 |   |   | - |   |
|                          |   | 112,800      options            |    |   |                                 |   |   |                                 |   |   |   |
|                          |   |                            |    |   |                                 |   |   |                                 |   |   |   |   |
| R.K.      Shaw                |   |                            | 32,657  |   |                                 |   | -      |                                 |   |   | - |   |
|                          |   | 120,000      options            |    |   |                                 |   |   |                                 |   |   |   |

| Directors      and Executive Officers as a Group |   | Great-West      Lifeco Inc. (1) |   |   | Power      Financial Corporation (2) |   |   | Power      Corporation of Canada (3) |   |
|--------------------------------------------------|--------|---------------------------------|--------|--------|--------------------------------------|--------|--------|--------------------------------------|--------|
|                                             |   | 1,990,136                       |   |   | 888,666                              |   |   | 1,421,818                            |   |
|                                             |   | 2,945,563      options          |   |   | 2,314,767      options               |   |   | 2,762,103      options               |   |

| (1) | All      holdings are common shares, or where indicated, preferred shares or      exercisable options for common shares of Great-West Lifeco      Inc. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | All      holdings are common shares, or where indicated, exercisable options for      common shares of Power FinancialCorporation. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

| (3) | All      holdings are subordinate voting shares, or where indicated, exercisable      options for subordinate voting shares of Power Corporation of      Canada. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item 13.

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Item 14.

14.1  Principal 

14.2 

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Table of Contents

ar

Ite

15.1  Index 

|                                                                                                                                                             |   | Page   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                             |   |   |
| Report      of Independent Registered Public Accounting Firm on Consolidated Financial      Statements for the Years Ended December 31, 2009, 2008 and      2007 |   | 59     |
|                                                                                                                                                             |   |   |
| Consolidated      Balance Sheets as of December 31, 2009 and 2008                                                                                                |   | 60     |
|                                                                                                                                                             |   |   |
| Consolidated      Statements of Income for the Years Ended December 31, 2009, 2008 and      2007                                                                 |   | 62     |
|                                                                                                                                                             |   |   |
| Consolidsated      Statements of Stockholder's Equity for the Years Ended December 31, 2009,      2008 and 2007                                                  |   | 63     |
|                                                                                                                                                             |   |   |
| Consolidated      Statements of Cash Flows for the Years Ended December 31, 2009, 2008 and      2007                                                             |   | 64     |
|                                                                                                                                                             |   |   |
| Notes      to Consolidated Financial Statements for the Years Ended December 31,      2009, 2008 and 2007                                                        |   | 66     |
|                                                                                                                                                             |   |   |
| Schedule      III - Supplemental Insurance Information                                                                                                           |   | 117    |

.2 

| Exhibit      Number |   | Title                                                                                                                                                                                                                         |   | Page   |
|---------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| 3(i)                |   | Amended      and Restated Articles of Incorporation of Great-West Life & Annuity      Insurance Company Filed as Exhibit 3(i) to Filed as Exhibit 3(1) to      Registrant's Form 10-K for the year ended December 31,2006 |   |   |
|                |   |                                                                                                                                                                                                                          |   |   |
| 3(ii)               |   | Bylaws      of Great-West Life & Annuity Insurance Company Filed as Exhibit 3(ii)      to Registrant's Form 10-K for the year ended December 31,    2006                                                                  |   |   |
|                |   |                                                                                                                                                                                                                          |   |   |
| 10                  |   | Material      Contracts                                                                                                                                                                                                       |   |   |
|                |   |                                                                                                                                                                                                                          |   |   |
| 10.1                |   | Great-West      Lifeco Inc. Stock Option Plan Filed as Exhibit 10.2 to Registrant's Form      10-K for the year ended December 31, 1997 and incorporated herein by      reference                                             |   |   |
|                |   |                                                                                                                                                                                                                          |   |   |
|                |   | Description      of amendment to the Great-West Lifeco Stock Option Plan Filed as Exhibit      10.2 to Registrant's Form 10-K for the year ended December 31, 2001 and      incorporated herein by  reference       |   |   |

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| Exhibit Number |   | Title                                                                                                                                                                                                                |   | Page   |
|----------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| 10.2           |   | Supplemental      Executive Retirement Plan Filed as Exhibit 10.3 to Registrant's Form 10-K      for the year ended December 31, 1997 and incorporated herein by      reference                                      |   |   |
|           |   |                                                                                                                                                                                                                 |   |   |
|           |   | Amendment      No. 3 to Supplemental Executive Retirement Plan.   Filed as      Exhibit 10.3 to Registrant's Form 10-K for the year ended December 31,      2000 and incorporated herein by reference |   |   |
|           |   |                                                                                                                                                                                                                 |   |   |
| 10.3           |   | Executive      Deferred Compensation Plan Filed as Exhibit 10.4 to Registrant's Form 10-K      for the year ended December 31, 1997 and incorporated herein by      reference                                        |   |   |
|           |   |                                                                                                                                                                                                                 |   |   |
| 10.4           |   | Deferred      Share Unit Plan Filed as Exhibit 10.5 to Registrant's Form 10-K for the      year ended December 31, 2001 and incorporated herein by      reference                                                    |   |   |
|           |   |                                                                                                                                                                                                                 |   |   |
| 10.5           |   | Executive      Long-Term Disability Plan Filed as Exhibit 10.6 to Registrant's Form 10-K      for the year  ended December 31, 2002 and incorporated herein by      reference                              |   |   |
|           |   |                                                                                                                                                                                                                 |   |   |
| 10.6           |   | Nonqualified      Deferred Compensation Plan Filed as Exhibit 10.7 to Registrant's Form 10-K      for the year ended December 31, 2002 and incorporated herein by      reference                                     |   |   |
|           |   |                                                                                                                                                                                                                 |   |   |
| 10.7           |   | Asset      and Stock Purchase Agreement Filed as Exhibit 99.9 by way of a Form 8-K      dated December 6, 1997 and incorporated herein byreference                                                                   |   |   |
|           |   |                                                                                                                                                                                                                 |   |   |
| 10.8           |   | Asset      and Stock Purchase Agreement Filed as Exhibit 99.9 by way of a Form 8-K      dated November 26, 2007 and incorporated herein by    reference                                                              |   |   |
|           |   |                                                                                                                                                                                                                 |   |   |
| 21             |   | Subsidiaries      of Great-West Life & Annuity Insurance Company filed      herewith                                                                                                                             |   | 143    |
|           |   |                                                                                                                                                                                                                 |   |   |

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| Exhibit      Number |   | Title                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Page   |
|---------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| 24                  |   | Directors'      Power of AttorneyDirectors'      Power of Attorney filed as Exhibit 24 to Registrant's Form 10-K for the      year ended December 31, 1996; Exhibit 24 to Registrant's Form 10-K for the      year ended December 31, 1997; Exhibit 24 to Registrant's Form 10-K for the      year ended  December 31, 2003; Exhibit 24 to Registrant's Form      10-K for the year ended December 31, 2005; Exhibit 24 to Registrant's Form      10-K for the year ended December 31, 2006; Exhibit 24 to Registrant's Form      10-K for the year ended December 31, 2007; Exhibit 24 to Registrant's Form      10-K for the year ended December 31, 2008; Exhibit 24 to Registrant's Form      10-K for the year ended December 31, 2009, and incorporated herein by      reference |   |   |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |
| 31.1                |   | Section      302 Certification of the Chief Executive Officer filed      herewith                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 144    |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |
| 31.2                |   | Section      302 Certification of the Chief Financial Officer filed      herewith                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 145    |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |
| 32                  |   | Section      906 Certification of the Chief Executive Officer and Chief Financial      Officer filed herewith                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 146    |

Signatures

| /s/ | Mitchell      T.G. Graye |
|-----|--------------------------|

|   | Mitchell      T.G. Graye, President and Chief Executive  Officer |
|--------|------------------------------------------------------------------|

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Table of Contents

|   | Signature      and Title                                  |   | Date                   |
|--------|-----------------------------------------------------------|--------|------------------------|
|   |                                                      |   |                   |
| /s/    | Mitchell      T.G. Graye                                  |   | February      19, 2010 |
|   | Mitchell      T.G. Graye                                  |   |                   |
|   | President      and Chief Executive Officer and a Director |   |                   |
|   |                                                      |   |                   |
| /s/    | James      L. McCallen                                    |   | February      19, 2010 |
|   | James      L. McCallen                                    |   |                   |
|   | Senior      Vice President and Chief Financial Officer    |   |                   |
|   |                                                      |   |                   |
| /s/    | Glen      R. Derback                                      |   | February      19, 2010 |
|   | Glen      R. Derback                                      |   |                   |
|   | Senior      Vice President and Controller                 |   |                   |
|   |                                                      |   |                   |
| /s/    | James      Balog *                                        |   | February      19, 2010 |
|   | James      Balog, Director                                |   |                   |
|   |                                                      |   |                   |
| /s/    | John      L. Bernbach *                                   |   | February      19, 2010 |
|   | John      L. Bernbach, Director                           |   |                   |
|   |                                                      |   |                   |
| /s/    | André      Desmarais *                               |   | February      19, 2010 |
|   | André      Desmarais, Director                       |   |                   |
|   |                                                      |   |                   |
| /s/    | Paul      Desmarais, Jr. *                                |   | February      19, 2010 |
|   | Paul      Desmarais, Jr., Director                        |   |                   |
|   |                                                      |   |                   |
| /s/    | Alain      Louvel *                                       |   | February      19, 2010 |
|   | Alain      Louvel, Director                               |   |                   |
|   |                                                      |   |                   |
| /s/    | Raymond      L. McFeetors *                               |   | February      19, 2010 |
|   | Raymond      L. McFeetors, Chairman of the Board          |   |                   |
|   |                                                      |   |                   |
| /s/    | Jerry      E.A. Nickerson *                               |   | February      19, 2010 |
|   | Jerry      E.A. Nickerson, Director                       |   |                   |
|   |                                                      |   |                   |
| /s/    | R.      Jeffrey Orr *                                     |   | February      19, 2010 |
|   | R.      Jeffrey Orr, Director                             |   |                   |
|   |                                                      |   |                   |
| /s/    | Michel      Plessis-Bélair *                         |   | February      19, 2010 |
|   | Michel      Plessis-Bélair, Director                 |   |                   |
|   |                                                      |   |                   |
| /s/    | Philip      K. Ryan *                                     |   | February      19, 2010 |
|   | Philip      K. Ryan, Director                             |   |                   |
|   |                                                      |   |                   |
| /s/    | T.      Timothy Ryan, Jr. *                               |   | February      19, 2010 |
|   | T.      Timothy Ryan, Jr., Director                       |   |                   |
|   |                                                      |   |                   |
| /s/    | Henri-Paul      Rousseau *                                |   | February      19, 2010 |
|   | Henri-Paul      Rousseau, Director                        |   |                   |

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Table of Contents

|          | Signature and Title                                       |   | Date                   |
|---------------|-----------------------------------------------------------|--------|------------------------|
|          |                                                      |   |                   |
| /s/           | Raymond      Royer *                                      |   | February      19, 2010 |
|          | Raymond      Royer, Director                              |   |                   |
|          |                                                      |   |                   |
| /s/           | Brian      E. Walsh *                                     |   | February      19, 2010 |
|          | Brian      E. Walsh, Director                             |   |                   |
|          |                                                      |   |                   |
| *      By:/s/ | Glen      R. Derback                                      |   | February      19, 2010 |
|          | Glen      R. Derback                                      |   |                   |
|          | Attorney-in-fact      pursuant to filed Power of Attorney |   |                   |

----