----

----

| ü | QUARTERLY 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 |
|--------|------------------------------------------------------------------------------------------|

| GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY        |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

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

| 8515 EAST ORCHARD ROAD, GREENWOOD VILLAGE, CO 80111  |
|------------------------------------------------------|
| (Address of principal executive offices)             |
|                                                 |
| (303) 737-3000                                       |
| (Registrant's telephone number, including area code) |

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

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

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

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

----

----

----

----

|                                                                                             |   | March 31,2010 |       |   | December 31,2009 |   |
|--------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|------------------|--------|
| Assets                                                                                           |   |          |       |   |             |   |
| Investments:                                                                                     |   |          |       |   |             |   |
| Fixed maturities, available-for-sale, at fair value (amortized cost $14,274,661 and $14,117,799) |   | $             | 14,405,688 |   |             | $      | 13,917,813 |   |
| Fixed maturities, held for trading, at fair value (amortized cost $160,158 and $135,425)         |   |          | 166,285    |   |             |   | 140,174 |   |
| Mortgage loans on real estate (net of allowances of $14,854 and $14,854)                         |   |          | 1,564,404  |   |             |   | 1,554,132 |   |
| Equity investments, available-for-sale, at fair value (cost $15,656 and $18,860)                 |   |          | 21,785     |   |             |   | 25,679 |   |
| Policy loans                                                                                     |   |          | 3,966,388  |   |             |   | 3,971,833 |   |
| Short-term investments, available-for-sale (cost approximates fair value)                        |   |          | 669,173    |   |             |   | 488,480 |   |
| Limited partnership and limited liability corporation interests                                  |   |          | 245,577    |   |             |   | 253,605 |   |
| Other investments                                                                                |   |          | 24,127     |   |             |   | 24,312 |   |
| Total investments                                                                                |   |          | 21,063,427 |   |             |   | 20,376,028 |   |
|                                                                                             |   |          |       |   |             |   |   |   |
| Other assets:                                                                                    |   |          |       |   |             |   |   |   |
| Cash                                                                                             |   |          | 19,872     |   |             |   | 170,978 |   |
| Reinsurance receivable                                                                           |   |          | 576,089    |   |             |   | 573,963 |   |
| Deferred acquisition costs and value of business acquired                                        |   |          | 431,711    |   |             |   | 481,044 |   |
| Investment income due and accrued                                                                |   |          | 276,953    |   |             |   | 225,449 |   |
| Premiums in course of collection                                                                 |   |          | 6,980      |   |             |   | 9,015 |   |
| Deferred income taxes                                                                            |   |          | 17,553     |   |             |   | 125,878 |   |
| Collateral under securities lending agreements                                                   |   |          | 91,004     |   |             |   | 38,296 |   |
| Due from parent and affiliates                                                                   |   |          | 204,753    |   |             |   | 196,697 |   |
| Goodwill                                                                                         |   |          | 105,255    |   |             |   | 105,255 |   |
| Other intangible assets                                                                          |   |          | 28,634     |   |             |   | 29,632 |   |
| Other assets                                                                                     |   |          | 529,578    |   |             |   | 491,471 |   |
| Assets of discontinued operations                                                                |   |          | 79,875     |   |             |   | 87,719 |   |
| Separate account assets                                                                          |   |          | 19,128,516 |   |             |   | 18,886,901 |   |
| Total assets                                                                                     |   | $             | 42,560,200 |   |             | $      | 41,798,326 |   |

----

|                                                                                              |   | March 31,2010 |       |   | December 31,2009 |   |
|---------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|------------------|--------|
| Liabilities and stockholder's equity                                                              |   |          |       |   |             |   |
| Policy benefit liabilities:                                                                       |   |          |       |   |             |   |
| Future policy benefits                                                                            |   | $             | 19,347,137 |   |             | $      | 18,972,560 |   |
| Policy and contract claims                                                                        |   |          | 280,929    |   |             |   | 286,176 |   |
| Policyholders' funds                                                                              |   |          | 336,359    |   |             |   | 358,795 |   |
| Provision for policyholders' dividends                                                            |   |          | 69,003     |   |             |   | 69,494 |   |
| Undistributed earnings on participating business                                                  |   |          | 4,444      |   |             |   | 3,580 |   |
| Total policy benefit liabilities                                                                  |   |          | 20,037,872 |   |             |   | 19,690,605 |   |
|                                                                                              |   |          |       |   |             |   |   |   |
| General liabilities:                                                                              |   |          |       |   |             |   |   |   |
| Due to parent and affiliates                                                                      |   |          | 544,551    |   |             |   | 537,563 |   |
| Repurchase agreements                                                                             |   |          | 601,332    |   |             |   | 491,338 |   |
| Commercial paper                                                                                  |   |          | 94,826     |   |             |   | 97,613 |   |
| Payable under securities lending agreements                                                       |   |          | 91,004     |   |             |   | 38,296 |   |
| Other liabilities                                                                                 |   |          | 484,665    |   |             |   | 618,508 |   |
| Liabilities of discontinued operations                                                            |   |          | 79,812     |   |             |   | 87,719 |   |
| Separate account liabilities                                                                      |   |          | 19,128,516 |   |             |   | 18,886,901 |   |
| Total liabilities                                                                                 |   |          | 41,062,578 |   |             |   | 40,448,543 |   |
|                                                                                              |   |          |       |   |             |   |   |   |
| Commitments and contingencies (Note 13)                                                           |   |          |       |   |             |   |   |   |
|                                                                                              |   |          |       |   |             |   |   |   |
| 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                                                                        |   |          | 762,254    |   |             |   | 761,330 |   |
| Accumulated other comprehensive loss                                                              |   |          | 43,547     |   |             |   | (132,721 | ) |
| Retained earnings                                                                                 |   |          | 684,789    |   |             |   | 714,142 |   |
| Total stockholder's equity                                                                        |   |          | 1,497,622  |   |             |   | 1,349,783 |   |
| Total liabilities and stockholder's equity                                                        |   | $             | 42,560,200 |   |             | $      | 41,798,326 |   |

----

|                                                                                                                |   | Three Months Ended March 31, |    |
|---------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                                                                |   | 2010                         |    |   | 2009 |   |
| Revenues:                                                                                                           |   |                         |    |   |   |   |
| Premium income, net of premiums ceded of $5,697 and $6,626                                                          |   | $                            | 210,994 |   |   | $ | 142,101 |   |
| Fee income                                                                                                          |   |                         | 109,639 |   |   |   | 83,894 |   |
| Net investment income                                                                                               |   |                         | 279,356 |   |   |   | 281,352 |   |
| Realized investment gains (losses), net:                                                                            |   |                         |    |   |   |   |   |   |
| Total other-than-temporary losses recognized                                                                        |   |                         | (53,055 | ) |   |   | (2,462 | ) |
| Less: Non-credit portion of other-than-temporary losses transferred to and recognized in other comprehensive income |   |                         | 15,704  |   |   |   | - |   |
| Net other-than-temporary losses recognized in earnings                                                              |   |                         | (37,351 | ) |   |   | (2,462 | ) |
| Other realized investment gains, net                                                                                |   |                         | 17,097  |   |   |   | 4,755 |   |
| Total realized investment gains (losses), net                                                                       |   |                         | (20,254 | ) |   |   | 2,293 |   |
| Total revenues                                                                                                      |   |                         | 579,735 |   |   |   | 509,640 |   |
| Benefits and expenses:                                                                                              |   |                         |    |   |   |   |   |   |
| Life and other policy benefits, net of reinsurance recoveries of $6,149 and $11,366                                 |   |                         | 147,853 |   |   |   | 144,830 |   |
| Increase in future policy benefits                                                                                  |   |                         | 101,731 |   |   |   | 23,805 |   |
| Interest paid or credited to contractholders                                                                        |   |                         | 116,290 |   |   |   | 131,195 |   |
| Provision (benefit) for policyholders' share of earnings on participating business                                  |   |                         | 386     |   |   |   | (66 | ) |
| Dividends to policyholders                                                                                          |   |                         | 23,784  |   |   |   | 25,596 |   |
| Total benefits                                                                                                      |   |                         | 390,044 |   |   |   | 325,360 |   |
| General insurance expenses                                                                                          |   |                         | 114,976 |   |   |   | 98,750 |   |
| Amortization of deferred acquisition costs and value of business acquired                                           |   |                         | 10,800  |   |   |   | 16,651 |   |
| Interest expense                                                                                                    |   |                         | 9,335   |   |   |   | 9,433 |   |
| Total benefits and expenses, net                                                                                    |   |                         | 525,155 |   |   |   | 450,194 |   |
| Income from operations before income taxes                                                                          |   |                         | 54,580  |   |   |   | 59,446 |   |
| Income tax expense                                                                                                  |   |                         | 17,933  |   |   |   | 15,447 |   |
| Net income                                                                                                          |   | $                            | 36,647  |   |   | $ | 43,999 |   |

----

|                                                                                                                            |   |        |   |   |                     |   |    | Accumulated OtherComprehensive Income (Loss) |   |   |                            |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|--------------------------|--------|---------|----------------------------------------------|--------|--------|---------------------------------|--------|
|                                                                                                                            |   | CommonStock |   |   | AdditionalPaid-inCapital |   |    | UnrealizedGains (Losses)on Securities        |   |   | EmployeeBenefit PlanAdjustments |   |   | RetainedEarnings |   |   | Total |   |
| Balances, January 1, 2009                                                                                                       |   | $           | 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                                                                                                      |   |        |   |   |                     |   |    |                                         |   |   |                            |   |   |   |   |   |   |   |   |   |   |   | 638,480 |   |
| 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 |   |
| Net income                                                                                                                      |   |        |   |   |                     |   |    |                                         |   |   |                            |   |   |   |   |   |   |   | 36,647 |   |   |   | 36,647 |   |
| Other comprehensive income (loss), net of income taxes:                                                                         |   |        |   |   |                     |   |    |                                         |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-credit component of impaired losses on fixed maturities available-for-sale                                                  |   |        |   |   |                     |   |    |                                         |   |   | (3,251                          | )      |   |   |   |   |   |   |   |   |   |   | (3,251 | ) |
| Net change in unrealized gains (losses)                                                                                         |   |        |   |   |                     |   |    |                                         |   |   | 179,725                         |   |   |   |   |   |   |   |   |   |   |   | 179,725 |   |
| Employee benefit plan adjustment                                                                                                |   |        |   |   |                     |   |    |                                         |   |   |                            |   |   |   | (206 | ) |   |   |   |   |   |   | (206 | ) |
| Total comprehensive income                                                                                                      |   |        |   |   |                     |   |    |                                         |   |   |                            |   |   |   |   |   |   |   |   |   |   |   | 176,268 |   |
| Dividends                                                                                                                       |   |        |   |   |                     |   |    |                                         |   |   |                            |   |   |   |   |   |   |   | (66,000 | ) |   |   | (66,000 | ) |
| Capital contribution - stock-based compensation                                                                                 |   |        |   |   |                     |   | 399     |                                         |   |   |                            |   |   |   |   |   |   |   |   |   |   |   | 399 |   |
| Income tax benefit on stock-based compensation                                                                                  |   |        |   |   |                     |   | 525     |                                         |   |   |                            |   |   |   |   |   |   |   |   |   |   |   | 525 |   |
| Balances, March 31, 2010                                                                                                        |   | $           | 7,032  |   |                     | $      | 762,254 |                                         |   | $      | 86,364                          |   |   | $ | (42,817 | ) |   | $ | 684,789 |   |   | $ | 1,497,622 |   |

----

|                                                                                        |   | Three Months Ended March 31, |       |
|---------------------------------------------------------------------------------------------|--------|------------------------------|------------|
|                                                                                        |   | 2010                         |       |   | 2009 |   |
|                                                                                        |   |                         |       |   |   |   |
| Cash flows from operating activities:                                                       |   |                         |       |   |   |   |
| Net income                                                                                  |   | $                            | 36,647     |   |   | $ | 43,999 |   |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: |   |                         |       |   |   |   |   |   |
| Earnings allocated to participating policyholders                                           |   |                         | 386        |   |   |   | (66 | ) |
| Amortization of premiums (accretion) of discounts on investments, net                       |   |                         | (7,544     | ) |   |   | (16,369 | ) |
| Net realized (gains) losses on investments                                                  |   |                         | 20,254     |   |   |   | (2,293 | ) |
| Net purchases of trading securities                                                         |   |                         | (24,669    | ) |   |   | (203,846 | ) |
| Interest credited to contractholders                                                        |   |                         | 115,117    |   |   |   | 129,396 |   |
| Depreciation and amortization                                                               |   |                         | 14,975     |   |   |   | 21,368 |   |
| Deferral of acquisition costs                                                               |   |                         | (24,310    | ) |   |   | (16,612 | ) |
| Deferred income taxes                                                                       |   |                         | 14,782     |   |   |   | 11,829 |   |
| Changes in assets and liabilities:                                                          |   |                         |       |   |   |   |   |   |
| Policy benefit liabilities                                                                  |   |                         | 53,650     |   |   |   | (99,590 | ) |
| Reinsurance receivable                                                                      |   |                         | 5,801      |   |   |   | 32,542 |   |
| Accrued interest and other receivables                                                      |   |                         | (49,469    | ) |   |   | (13,522 | ) |
| Other, net                                                                                  |   |                         | (106,282   | ) |   |   | (32,437 | ) |
| Net cash provided by (used in) operating activities                                         |   |                         | 49,338     |   |   |   | (145,601 | ) |
|                                                                                        |   |                         |       |   |   |   |   |   |
|                                                                                        |   |                         |       |   |   |   |   |   |
| Cash flows from investing activities:                                                       |   |                         |       |   |   |   |   |   |
| Proceeds from sales, maturities and redemptions of investments:                             |   |                         |       |   |   |   |   |   |
| Fixed maturities available-for-sale                                                         |   |                         | 1,063,168  |   |   |   | 1,029,852 |   |
| Mortgage loans on real estate                                                               |   |                         | 19,599     |   |   |   | 18,478 |   |
| Equity investments and other limited partnership interests                                  |   |                         | 14,258     |   |   |   | 15,699 |   |
| Purchases of investments:                                                                   |   |                         |       |   |   |   |   |   |
| Fixed maturities available-for-sale                                                         |   |                         | (1,163,899 | ) |   |   | (1,048,606 | ) |
| Mortgage loans on real estate                                                               |   |                         | (31,568    | ) |   |   | (5,600 | ) |
| Equity investments and other limited partnership interests                                  |   |                         | (1,815     | ) |   |   | (2,971 | ) |
| Net change in short-term investments                                                        |   |                         | (296,626   | ) |   |   | (229,857 | ) |
| Net change in repurchase agreements                                                         |   |                         | 109,994    |   |   |   | 147,199 |   |
| Other, net                                                                                  |   |                         | 404        |   |   |   | (1,085 | ) |
| Net cash used in investing activities                                                       |   |                         | (286,485   | ) |   |   | (76,891 | ) |

----

|                                                                |   | Three Months Ended March 31, |     |
|---------------------------------------------------------------------|--------|------------------------------|----------|
|                                                                |   | 2010                         |     |   | 2009 |   |
|                                                                |   |                         |     |   |   |   |
| Cash flows from financing activities:                               |   |                         |     |   |   |   |
| Contract deposits                                                   |   | $                            | 552,816  |   |   | $ | 584,176 |   |
| Contract withdrawals                                                |   |                         | (374,603 | ) |   |   | (347,610 | ) |
| Change in due to parent and affiliates                              |   |                         | (1,068   | ) |   |   | (5,834 | ) |
| Dividends paid                                                      |   |                         | (66,000  | ) |   |   | (24,682 | ) |
| Net commercial paper borrowings (repayments)                        |   |                         | (2,787   | ) |   |   | (1,611 | ) |
| Change in bank overdrafts                                           |   |                         | (22,842  | ) |   |   | (4,526 | ) |
| Income tax benefit of stock option exercises                        |   |                         | 525      |   |   |   | 437 |   |
| Net cash provided by financing activities                           |   |                         | 86,041   |   |   |   | 200,350 |   |
|                                                                |   |                         |     |   |   |   |   |   |
| Net decrease in cash                                                |   |                         | (151,106 | ) |   |   | (22,142 | ) |
| Cash, beginning of period                                           |   |                         | 170,978  |   |   |   | 28,352 |   |
| Cash, end of period                                                 |   | $                            | 19,872   |   |   | $ | 6,210 |   |
|                                                                |   |                         |     |   |   |   |   |   |
|                                                                |   |                         |     |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                  |   |                         |     |   |   |   |   |   |
| Net cash paid during the periods for:                               |   |                         |     |   |   |   |   |   |
| Income taxes                                                        |   | $                            | 737      |   |   | $ | 1,417 |   |
| Net income tax payments withheld and remitted to taxing authorities |   |                         | 15,214   |   |   |   | 15,928 |   |
| Interest                                                            |   |                         | 78       |   |   |   | 175 |   |
|                                                                |   |                         |     |   |   |   |   |   |
| Non-cash investing and financing transactions during the periods:   |   |                         |     |   |   |   |   |   |
| Share-based compensation expense                                    |   |                         | 399      |   |   |   | 673 |   |

----

| 1.  Organization and Basis of Presentation |
|------------------------------------------------------|

|                                                            |   | As previously reported |      |   | Adjustments |   |     | As restated |   |
|-----------------------------------------------------------------|--------|------------------------|-----------|--------|-------------|--------|----------|-------------|--------|
| Cash flows from operating activities:                           |   |                   |      |   |        |   |     |        |   |
| Net purchases of trading securities                             |   | $                      | (215,101  | )      |        | $      | 11,255   |        |   | $ | (203,846 | ) |
| Changes in assets and liabilities:                              |   |                   |      |   |        |   |     |        |   |   |   |   |
| Other, net                                                      |   |                   | (84,471   | )      |        |   | 52,034   |        |   |   | (32,437 | ) |
| Net cash provided by (used in) operating activities             |   |                   | (208,890  | )      |        |   | 63,289   |        |   |   | (145,601 | ) |
|                                                            |   |                   |      |   |        |   |     |        |   |   |   |   |
| Cash flows from investing activities:                           |   |                   |      |   |        |   |     |        |   |   |   |   |
| Proceeds from sales, maturities and redemptions of investments: |   |                   |      |   |        |   |     |        |   |   |   |   |
| Fixed maturities available-for-sale                             |   |                   | 1,014,364 |   |        |   | 15,488   |        |   |   | 1,029,852 |   |
| Equity investments and other limited partnership interests      |   |                   | 15,183    |   |        |   | 516      |        |   |   | 15,699 |   |
| Net change in short-term investments                            |   |                   | (266,870  | )      |        |   | 37,013   |        |   |   | (229,857 | ) |
| Other, net                                                      |   |                   | 115,221   |   |        |   | (116,306 | )           |   |   | (1,085 | ) |
| Net cash provided by (used in) investing activities             |   |                   | (13,602   | )      |        |   | (63,289  | )           |   |   | (76,891 | ) |

----

----

----

| 3. | Discontinued Operations |
|----|-------------------------|

| Assets                     |   | March 31, 2010 |   |   | December 31, 2009 |   |
|----------------------------|--------|----------------|--------|--------|-------------------|--------|
| Reinsurance receivable     |   | $              | 79,792 |   |              | $      | 87,719 |   |
| Other assets               |   |           | 83     |   |              |   | - |   |
| Total assets               |   | $              | 79,875 |   |              | $      | 87,719 |   |
|                       |   |           |   |   |              |   |   |   |
| Liabilities                |   |           |   |   |              |   |   |   |
| Future policy benefits     |   | $              | 50,808 |   |              | $      | 56,219 |   |
| Policy and contract claims |   |           | 29,004 |   |              |   | 31,500 |   |
| Total liabilities          |   | $              | 79,812 |   |              | $      | 87,719 |   |

|                   |   | March 31, 2010 |      |   | December 31, 2009 |   |
|------------------------|--------|----------------|-----------|--------|-------------------|--------|
| Reinsurance receivable |   | $              | 460,068   |   |              | $      | 452,510 |   |
| Future policy benefits |   |           | 2,256,363 |   |              |   | 2,293,712 |   |

----

|                                                                             |   | Three Months Ended March 31, |    |
|----------------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                             |   | 2010                         |    |   | 2009 |   |
| Premium income, net of related party premium ceded of $794 and $806              |   | $                            | 31,434  |   |   | $ | 29,445 |   |
| Life and other policy benefits, net of reinsurance recoveries of $867 and $3,102 |   |                         | 33,591  |   |   |   | 26,031 |   |
| Increase (decrease) in future policy benefits                                    |   |                         | (26,991 | ) |   |   | (15,935 | ) |

----

|                                                 |   | March 31, 2010 |       |
|------------------------------------------------------|--------|----------------|------------|
| Fixed maturities:                                    |   | Amortizedcost  |       |   | Grossunrealizedgains |   |   | Grossunrealizedlosses |   |   | Estimatedfair value andcarrying value |   |   | OTTI includedin AOCI |   |
| U.S. government direct obligations and U.S. agencies |   | $              | 1,990,807  |   |   | $ | 85,603 |   |   | $ | 3,083 |   |   | $ | 2,073,327 |   |   | $ | - |   |
| Obligations of U.S. states and their subdivisions    |   |           | 1,460,253  |   |   |   | 136,245 |   |   |   | 1,969 |   |   |   | 1,594,529 |   |   |   | - |   |
| Foreign governments                                  |   |           | 457        |   |   |   | - |   |   |   | 4 |   |   |   | 453 |   |   |   | - |   |
| Corporate debt securities                            |   |           | 7,052,677  |   |   |   | 393,449 |   |   |   | 162,784 |   |   |   | 7,283,342 |   |   |   | 7,376 |   |
| Asset-backed securities                              |   |           | 2,173,447  |   |   |   | 9,164 |   |   |   | 269,791 |   |   |   | 1,912,820 |   |   |   | 21,928 |   |
| Residential mortgage-backed securities               |   |           | 818,820    |   |   |   | 6,623 |   |   |   | 61,605 |   |   |   | 763,838 |   |   |   | - |   |
| Commercial mortgage-backed securities                |   |           | 729,867    |   |   |   | 18,424 |   |   |   | 19,426 |   |   |   | 728,865 |   |   |   | - |   |
| Collateralized debt obligations                      |   |           | 48,333     |   |   |   | 375 |   |   |   | 194 |   |   |   | 48,514 |   |   |   | - |   |
| Total fixed maturities                               |   | $              | 14,274,661 |   |   | $ | 649,883 |   |   | $ | 518,856 |   |   | $ | 14,405,688 |   |   | $ | 29,304 |   |
|                                                 |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity investments:                                  |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity mutual funds                                  |   | $              | 15,656     |   |   | $ | 6,471 |   |   | $ | 342 |   |   | $ | 21,785 |   |   | $ | - |   |
| Total equity investments                             |   | $              | 15,656     |   |   | $ | 6,471 |   |   | $ | 342 |   |   | $ | 21,785 |   |   | $ | - |   |

----

|                                                 |   | December 31, 2009 |       |
|------------------------------------------------------|--------|-------------------|------------|
| Fixed maturities:                                    |   | Amortizedcost     |       |   | Grossunrealizedgains |   |   | Grossunrealizedlosses |   |   | Estimatedfair value andcarrying value |   |   | OTTI includedin 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 |   |   | $ | - |   |

|                                        |   | March 31, 2010 |       |
|---------------------------------------------|--------|----------------|------------|
|                                        |   | Amortized cost |       |   | Estimated fair value |   |
| Maturing in one year or less                |   | $              | 626,899    |   |   | $ | 655,474 |   |
| Maturing after one year through five years  |   |           | 2,655,002  |   |   |   | 2,844,071 |   |
| Maturing after five years through ten years |   |           | 2,877,917  |   |   |   | 3,087,260 |   |
| Maturing after ten years                    |   |           | 2,502,632  |   |   |   | 2,447,447 |   |
| Mortgage-backed and asset-backed securities |   |           | 5,612,211  |   |   |   | 5,371,436 |   |
|                                        |   | $              | 14,274,661 |   |   | $ | 14,405,688 |   |

----

|                                        |   | Three Months Ended March 31, |    |
|---------------------------------------------|--------|------------------------------|---------|
|                                        |   | 2010                         |    |   | 2009 |   |
| Proceeds from sales                         |   | $                            | 776,449 |   |   | $ | 652,035 |   |
| Gross realized investment gains from sales  |   |                         | 14,347  |   |   |   | 5,696 |   |
| Gross realized investment losses from sales |   |                         | 40      |   |   |   | 723 |   |

----

----

|                       |   | March 31, 2010  |
|----------------------------|--------|-----------------|
|                       |   | Notional amount |   |   | Number of contracts |   |   | Strike/Swap rate 1 |   | Maturity |
| Interest rate swaps        |   | $               | 136,200 |   |   |   | 11 |   |   |   | 0.20% - 0.44 | % | February 2012 - February 2045 |
|                       |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency contracts |   |            | 30,000 |   |   |   | 1 |   |   |   | N/A |   | December 2016 |
|                       |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Futures:                   |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Thirty year U.S. Treasury: |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Short position             |   |            | 82,200 |   |   |   | 822 |   |   |   | N/A |   | June 2010 |
| Ten year U.S. Treasury:    |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Short position             |   |            | 30,300 |   |   |   | 303 |   |   |   | N/A |   | June 2010 |
| Long position              |   |            | 38,700 |   |   |   | 387 |   |   |   | N/A |   | June 2010 |
| Five year U.S. Treasury:   |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Short position             |   |            | 19,300 |   |   |   | 193 |   |   |   | N/A |   | June 2010 |
|                       |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swaptions    |   |            | 1,140,000 |   |   |   | 60 |   |   |   | 9.90% - 10.10 | % | November 2010 - September 2015 |

|                       |   | 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 |

----

|                                           |   | Asset derivatives |   | Liability derivatives |
|------------------------------------------------|--------|-------------------|--------|-----------------------|
|                                           |   | Fair value        |   |                  |   | Fair value |   |   |
|                                           |   | March 31, 2010    |   |                  | December 31, 2009 |   | Balance sheet location |   | March 31, 2010 |   |   | December 31, 2009 |   | Balance sheet location |
| Derivatives designated as hedging instruments: |   |              |   |                  |   |   |   |   |   |   |   |   |   |   |
| Interest rate swaps                            |   | $                 | 13,972 |                  |   | $ | 14,690 |   | (A) |   | $ | - |   |   | $ | - |   |   |
| Foreign currency exchange contracts            |   |              | -      |                  |   |   | - |   |   |   |   | 1,520 |   |   |   | 3,317 |   | (B) |
| Total                                          |   | $                 | 13,972 |                  |   | $ | 14,690 |   |   |   | $ | 1,520 |   |   | $ | 3,317 |   |   |

|                                               |   | Asset derivatives |   | Liability derivatives |
|----------------------------------------------------|--------|-------------------|--------|-----------------------|
|                                               |   | Fair value        |   |                  |   | Fair value |   |   |
|                                               |   | March 31, 2010    |   |                  | December 31, 2009 |   | Balance sheet location |   | March 31, 2010 |   |   | December 31, 2009 |   | Balance sheet location |
| Derivatives not designated as hedging instruments: |   |              |   |                  |   |   |   |   |   |   |   |   |   |   |
| Interest rate swaptions                            |   | $                 | 3,677  |                  |   | $ | 8,460 |   | (A) |   | $ | - |   |   | $ | - |   |   |
| Total                                              |   | $                 | 3,677  |                  |   | $ | 8,460 |   |   |   | $ | - |   |   | $ | - |   |   |

|                                |   | Gain (loss) recognizedin AOCI on derivatives(Effective portion) |   |   | Gain (loss) reclassified fromAOCI into income (Effective portion) |   | Gain (loss) recognized in incomeon derivatives (Ineffective portionand amount excludedfrom effectiveness testing) |
|-------------------------------------|--------|-----------------------------------------------------------------|--------|--------|-------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|
|                                |   | Three Months EndedMarch 31, 2010                                |   |   | Three Months EndedMarch 31, 2010                                  |   | Income statementlocation                                                                                          |   | Three Months EndedMarch 31, 2010 |   | Incomestatementlocation |
| Cash flow hedges:                   |   |                                                            |   |   |                                                              |   |                                                                                                              |   |   |   |   |
| Interest rate swaps                 |   | $                                                               | 1,444  |   |                                                              | $      | 286                                                                                                               |   | (A) |   | $ | (1 | ) | (A) |
| Foreign currency exchange contracts |   |                                                            | 1,798  |   |                                                              |   | -                                                                                                                 |   |   |   |   | - |   |   |
| Interest rate futures               |   |                                                            | (447   | )      |                                                              |   | 27                                                                                                                |   | (A) |   |   | - |   |   |
| Total                               |   | $                                                               | 2,795  |   |                                                              | $      | 313                                                                                                               |   |   |   | $ | (1 | ) |   |

|                                |   | Gain (loss) recognizedin AOCI on derivatives(Effective portion) |    |   | Gain (loss) reclassified fromAOCI into income (Effective portion) |   | Gain (loss) recognized in incomeon derivatives (Ineffective portionand amount excludedfrom effectiveness testing) |
|-------------------------------------|--------|-----------------------------------------------------------------|---------|--------|-------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|
|                                |   | Three Months EndedMarch 31, 2009                                |    |   | Three Months EndedMarch 31, 2009                                  |   | Income statementlocation                                                                                          |   | Three Months EndedMarch 31, 2009 |   | Incomestatementlocation |
| Cash flow hedges:                   |   |                                                            |    |   |                                                              |   |                                                                                                              |   |   |   |   |
| Interest rate swaps                 |   | $                                                               | (31,705 | )      |                                                              | $      | 70                                                                                                                |   | (A) |   | $ | 19 |   | (A) |
| Foreign currency exchange contracts |   |                                                            | (363    | )      |                                                              |   | -                                                                                                                 |   |   |   |   | - |   |   |
| Interest rate futures               |   |                                                            | -       |   |                                                              |   | 13                                                                                                                |   | (A) |   |   | - |   |   |
| Total                               |   | $                                                               | (32,068 | )      |                                                              | $      | 83                                                                                                                |   |   |   | $ | 19 |   |   |

----

|                                  |   | Gain (loss) recognized in net income on derivatives |   | Gain (loss) recognized innet income on hedged assets |
|---------------------------------------|--------|----------------------------------------------------------|--------|------------------------------------------------------|
|                                  |   | Three Months EndedMarch 31, 2010                         |   | Income statementlocation                             |   | Three Months EndedMarch 31, 2010 |   | Income statementlocation |
| Fair value hedges:                    |   |                                                     |   |                                                 |   |   |   |   |
| Interest rate futures                 |   | $                                                        | (1,177 | )                                                    | (A) |   | $ | - |   |   |
| Interest rate futures                 |   |                                                     | 272    |                                                 | (B) |   |   | - |   |   |
| Items hedged in interest rate futures |   |                                                     | -      |                                                 |   |   |   | 1,221 |   | (A) |
| Total                                 |   | $                                                        | (905   | )                                                    |   |   | $ | 1,221 |   |   |

|                                  |   | Gain (loss) recognized in net income on derivatives |   | Gain (loss) recognized innet income on hedged assets |
|---------------------------------------|--------|----------------------------------------------------------|--------|------------------------------------------------------|
|                                  |   | Three Months EndedMarch 31, 2009                         |   | Income statementlocation                             |   | Three Months EndedMarch 31, 2009 |   | Income statementlocation |
| Fair value hedges:                    |   |                                                     |   |                                                 |   |   |   |   |
| Interest rate futures                 |   | $                                                        | 3,233  |                                                 | (A) |   | $ | - |   |   |
| Interest rate futures                 |   |                                                     | (1,544 | )                                                    | (B) |   |   | - |   |   |
| Items hedged in interest rate futures |   |                                                     | -      |                                                 |   |   |   | (1,649 | ) | (A) |
| Total                                 |   | $                                                        | 1,689  |                                                 |   |   | $ | (1,649 | ) |   |

|                                              |   | Gain (loss) recognized in net income on derivatives |   | Gain (loss) recognized innet income on hedged assets |
|---------------------------------------------------|--------|----------------------------------------------------------|--------|------------------------------------------------------|
|                                              |   | Three Months EndedMarch 31, 2010                         |   | Income statementlocation                             |   | Three Months EndedMarch 31, 2010 |   | Income statementlocation |
| Derivatives not designated as hedging instruments |   |                                                     |   |                                                 |   |   |   |   |
| Interest rate futures                             |   | $                                                        | (3,559 | )                                                    | (A) |   | $ | - |   |   |
| Interest rate futures                             |   |                                                     | 963    |                                                 | (B) |   |   | - |   |   |
| Interest rate swaptions                           |   |                                                     | (4,784 | )                                                    | (A) |   |   | - |   |   |
| Total                                             |   | $                                                        | (7,380 | )                                                    |   |   | $ | - |   |   |

----

| Limited partnership interests and limited liability corporation interests |   | Liabilities |   | Maximum exposure to loss |
|---------------------------------------------------------------------------|--------|-------------|--------|--------------------------|
| $ 183,314                                                                 |   | $ -         |   | $ 183,314                |

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

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

----

|                                                      |   | March 31, 2010          |      |
|-----------------------------------------------------------|--------|-------------------------|-----------|
|                                                      |   | 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      |   | $                       | 454,679   |   |   | $ | 3,028 |   |   | $ | 18,456 |   |   | $ | 55 |   |   | $ | 473,135 |   |   | $ | 3,083 |   |
| Obligations of U.S. states and their subdivisions         |   |                    | 143,124   |   |   |   | 1,913 |   |   |   | 11,010 |   |   |   | 56 |   |   |   | 154,134 |   |   |   | 1,969 |   |
| Foreign governments                                       |   |                    | 452       |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | 452 |   |   |   | 4 |   |
| Corporate debt securities                                 |   |                    | 487,544   |   |   |   | 34,802 |   |   |   | 1,053,638 |   |   |   | 127,982 |   |   |   | 1,541,182 |   |   |   | 162,784 |   |
| Asset-backed securities                                   |   |                    | 100,535   |   |   |   | 23,450 |   |   |   | 1,472,858 |   |   |   | 246,341 |   |   |   | 1,573,393 |   |   |   | 269,791 |   |
| Residential mortgage-backed securities                    |   |                    | 39,023    |   |   |   | 2,857 |   |   |   | 512,179 |   |   |   | 58,748 |   |   |   | 551,202 |   |   |   | 61,605 |   |
| Commercial mortgage-backed securities                     |   |                    | 46,957    |   |   |   | 158 |   |   |   | 103,636 |   |   |   | 19,268 |   |   |   | 150,593 |   |   |   | 19,426 |   |
| Collateralized debt obligations                           |   |                    | 18        |   |   |   | 1 |   |   |   | 6,756 |   |   |   | 193 |   |   |   | 6,774 |   |   |   | 194 |   |
| Total fixed maturities                                    |   | $                       | 1,272,332 |   |   | $ | 66,213 |   |   | $ | 3,178,533 |   |   | $ | 452,643 |   |   | $ | 4,450,865 |   |   | $ | 518,856 |   |
|                                                      |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity Investments                                        |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity mutual funds                                       |   | $                       | -         |   |   | $ | - |   |   | $ | 2,396 |   |   | $ | 342 |   |   | $ | 2,396 |   |   | $ | 342 |   |
| Total equity investments                                  |   | $                       | -         |   |   | $ | - |   |   | $ | 2,396 |   |   | $ | 342 |   |   | $ | 2,396 |   |   | $ | 342 |   |
|                                                      |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total number of securities in an unrealized loss position |   |                    |      |   |   |   | 128 |   |   |   |   |   |   |   | 303 |   |   |   |   |   |   |   | 431 |   |

|                                                      |   | 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 |   |

----

| Sector            |   | March 31, 2010 |   |   | December 31, 2009 |   |
|-------------------|--------|----------------|--------|--------|-------------------|--------|
| Finance           |   |           | 76     | %      |              |   | 77 | % |
| Utility           |   |           | 12     | %      |              |   | 10 | % |
| Natural resources |   |           | 4      | %      |              |   | 4 | % |
| Consumer          |   |           | 4      | %      |              |   | 4 | % |
| Transportation    |   |           | 1      | %      |              |   | 2 | % |
| Other             |   |           | 3      | %      |              |   | 3 | % |
|              |   |           | 100    | %      |              |   | 100 | % |

----

| Bifurcated credit loss balance, January 1, 2010                                    |   | $      | 115,325 |   |
|------------------------------------------------------------------------------------|--------|--------|---------|--------|
| Additions:                                                                         |   |   |    |   |
| Initial impairments - credit loss recognized on securities not previously impaired |   |   | 36,524  |   |
| Bifurcated credit loss balance, March 31, 2010                                     |   | $      | 151,849 |   |

|                                                           |   | March 31, 2010 |       |   | December 31, 2009   |   |
|----------------------------------------------------------------|--------|----------------|------------|--------|---------------------|--------|
| Assets                                                         |   | Carryingamount |       |   | Estimatedfair value |   |   | Carryingamount |   |   | Estimatedfair value |   |
| Fixed maturities and short-term investments                    |   | $              | 15,241,146 |   |                | $      | 15,241,146 |   |   | $ | 14,546,467 |   |   | $ | 14,546,467 |   |
| Mortgage loans on real estate                                  |   |           | 1,564,404  |   |                |   | 1,585,642 |   |   |   | 1,554,132 |   |   |   | 1,570,217 |   |
| Equity investments                                             |   |           | 21,785     |   |                |   | 21,785 |   |   |   | 25,679 |   |   |   | 25,679 |   |
| Policy loans                                                   |   |           | 3,966,388  |   |                |   | 3,966,388 |   |   |   | 3,971,833 |   |   |   | 3,971,833 |   |
| Other investments                                              |   |           | 24,127     |   |                |   | 47,374 |   |   |   | 24,312 |   |   |   | 50,159 |   |
| Derivative instruments                                         |   |           | 17,649     |   |                |   | 17,649 |   |   |   | 23,150 |   |   |   | 23,150 |   |
| Collateral under securities lending agreements                 |   |           | 91,004     |   |                |   | 91,004 |   |   |   | 38,296 |   |   |   | 38,296 |   |
| Collateral under derivative counterparty collateral agreements |   |           | 3,320      |   |                |   | 3,320 |   |   |   | 4,300 |   |   |   | 4,300 |   |
| Separate account assets                                        |   |           | 19,128,516 |   |                |   | 19,128,516 |   |   |   | 18,886,901 |   |   |   | 18,886,901 |   |

----

|                                                        |   | March 31, 2010 |      |   | December 31, 2009   |   |
|-------------------------------------------------------------|--------|----------------|-----------|--------|---------------------|--------|
| Liabilities                                                 |   | Carryingamount |      |   | Estimatedfair value |   |   | Carryingamount |   |   | Estimatedfair value |   |
| Annuity contract reserves without life contingencies        |   | $              | 7,336,395 |   |                | $      | 7,315,832 |   |   | $ | 7,167,733 |   |   | $ | 7,105,090 |   |
| Policyholders' funds                                        |   |           | 280,929   |   |                |   | 280,929 |   |   |   | 286,175 |   |   |   | 286,175 |   |
| Repurchase agreements                                       |   |           | 601,332   |   |                |   | 601,332 |   |   |   | 491,338 |   |   |   | 491,338 |   |
| Commercial paper                                            |   |           | 94,826    |   |                |   | 94,826 |   |   |   | 97,613 |   |   |   | 97,613 |   |
| Payable under securities lending agreements                 |   |           | 91,004    |   |                |   | 91,004 |   |   |   | 38,296 |   |   |   | 38,296 |   |
| Payable under derivative counterparty collateral agreements |   |           | 3,320     |   |                |   | 3,320 |   |   |   | 4,300 |   |   |   | 4,300 |   |
| Derivative instruments                                      |   |           | 1,520     |   |                |   | 1,520 |   |   |   | 3,317 |   |   |   | 3,317 |   |
| Notes payable                                               |   |           | 541,580   |   |                |   | 541,580 |   |   |   | 532,319 |   |   |   | 532,319 |   |

----

-      Level 1 inputs utilize observable, quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access.  Financial assets and liabilities utilizing Level 1 inputs include actively exchange-traded equity securities. 

----

-      Level 2 inputs utilize other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.  Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.  The fair values for some Level 2 securities were obtained from a pricing service.  The inputs used by the pricing service are reviewed on a quarterly basis.  The pricing service inputs include, but are not limited to, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, offers and reference data.  Level 2 securities include those priced using a matrix which are based on credit quality and average life, U.S. government and agency securities, restricted stock, some private equities, certain fixed maturity investments and some over-the-counter derivatives.  See Note 5 for further discussions of derivatives and their impact on the Company's condensed consolidated financial statements. 

-      Level 3 inputs are unobservable and include situations where there is little, if any, market activity for the asset or liability.  The prices of the majority of Level 3 securities were obtained from single broker quotes and internal pricing models.  Financial assets and liabilities utilizing Level 3 inputs include certain private equity, fixed maturity and over-the-counter derivative investments. 

----

|                                                 |   | Assets and Liabilities Measured at Fair Value on a Recurring Basis March 31, 2010 |       |
|------------------------------------------------------|--------|----------------------------------------------------------------------------------------|------------|
| Assets                                               |   | Quoted pricesin activemarkets foridentical assets(Level 1)                             |       |   | Significantotherobservableinputs(Level 2) |   |   | Significantunobservableinputs(Level 3) |   |   | Total |   |
| Fixed maturities, available-for-sale:                |   |                                                                                   |       |   |   |   |   |   |   |   |   |   |
| U.S. government direct obligations and U.S. agencies |   | $                                                                                      | -          |   |   | $ | 2,073,327 |   |   | $ | - |   |   | $ | 2,073,327 |   |
| Obligations of U.S. states and their subdivisions    |   |                                                                                   | -          |   |   |   | 1,594,529 |   |   |   | - |   |   |   | 1,594,529 |   |
| Foreign governments                                  |   |                                                                                   | -          |   |   |   | 453 |   |   |   | - |   |   |   | 453 |   |
| Corporate debt securities                            |   |                                                                                   | -          |   |   |   | 7,162,720 |   |   |   | 120,622 |   |   |   | 7,283,342 |   |
| Asset-backed securities                              |   |                                                                                   | -          |   |   |   | 1,587,647 |   |   |   | 325,173 |   |   |   | 1,912,820 |   |
| Residential mortgage-backed securities               |   |                                                                                   | -          |   |   |   | 763,838 |   |   |   | - |   |   |   | 763,838 |   |
| Commercial mortgage-backed securities                |   |                                                                                   | -          |   |   |   | 728,865 |   |   |   | - |   |   |   | 728,865 |   |
| Collateralized debt obligations                      |   |                                                                                   | -          |   |   |   | 46,767 |   |   |   | 1,747 |   |   |   | 48,514 |   |
| Total fixed maturities available-for-sale            |   |                                                                                   | -          |   |   |   | 13,958,146 |   |   |   | 447,542 |   |   |   | 14,405,688 |   |
| Fixed maturities, held for trading:                  |   |                                                                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. government direct obligations and U.S. agencies |   |                                                                                   | -          |   |   |   | 67,047 |   |   |   | - |   |   |   | 67,047 |   |
| Corporate debt securities                            |   |                                                                                   | -          |   |   |   | 47,469 |   |   |   | - |   |   |   | 47,469 |   |
| Asset-backed securities                              |   |                                                                                   | -          |   |   |   | 43,423 |   |   |   | - |   |   |   | 43,423 |   |
| Commercial mortgage-backed securities                |   |                                                                                   | -          |   |   |   | 8,346 |   |   |   | - |   |   |   | 8,346 |   |
| Total fixed maturities held for trading              |   |                                                                                   | -          |   |   |   | 166,285 |   |   |   | - |   |   |   | 166,285 |   |
| Equity investments available-for-sale:               |   |                                                                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity mutual funds                                  |   |                                                                                   | 21,200     |   |   |   | 585 |   |   |   | - |   |   |   | 21,785 |   |
| Total equity investments                             |   |                                                                                   | 21,200     |   |   |   | 585 |   |   |   | - |   |   |   | 21,785 |   |
| Short-term investments available-for-sale            |   |                                                                                   | 17,061     |   |   |   | 652,112 |   |   |   | - |   |   |   | 669,173 |   |
| Collateral under securities lending agreements       |   |                                                                                   | 90,448     |   |   |   | 556 |   |   |   | - |   |   |   | 91,004 |   |
| Other assets 1                                       |   |                                                                                   | -          |   |   |   | 17,649 |   |   |   | - |   |   |   | 17,649 |   |
| Separate account assets 2                            |   |                                                                                   | 10,260,089 |   |   |   | 8,624,045 |   |   |   | 5,358 |   |   |   | 18,889,492 |   |
| Total assets                                         |   | $                                                                                      | 10,388,798 |   |   | $ | 23,419,378 |   |   | $ | 452,900 |   |   | $ | 34,261,076 |   |
|                                                 |   |                                                                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                          |   |                                                                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities 1                                  |   | $                                                                                      | -          |   |   | $ | - |   |   | $ | 1,519 |   |   | $ | 1,519 |   |

| 1 | Includes derivative financial instruments. |
|---|--------------------------------------------|

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

----

|                                                                                                                                                           |   | Recurring Level 3 Financial Assets and LiabilitiesThree Months Ended March 31, 2010 |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|---------|
|                                                                                                                                                           |   | Fixed maturitiesavailable-for-sale: corporatedebt securities                        |    |   | Fixed maturitiesavailable-for-sale: asset-backedsecurities 3 |   |   | Fixed maturitiesavailable-for-sale: commercialmortgage-backedsecurities |   |   | Fixed maturitiesavailable-for-sale: collateralizeddebt obligations |   |   | Other assetsand liabilities 1 |   |   | Separateaccounts |   |
| Balance, January 1, 2010                                                                                                                                       |   | $                                                                                   | 188,936 |   |   | $ | 392,365 |   |   | $ | 58,270 |   |   | $ | 1,729 |   |   | $ | (3,317 | ) |   | $ | 9,960 |   |
| Realized and unrealized gains and losses:                                                                                                                      |   |                                                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gains (losses) included in net income                                                                                                                          |   |                                                                                | 450     |   |   |   | (27,380 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Gains (losses) included in other comprehensive income (loss)                                                                                                   |   |                                                                                | 7,620   |   |   |   | 33,508 |   |   |   | - |   |   |   | 54 |   |   |   | 1,797 |   |   |   | 222 |   |
| Purchases, issuances and settlements                                                                                                                           |   |                                                                                | (11,818 | ) |   |   | (66,122 | ) |   |   | - |   |   |   | (36 | ) |   |   | - |   |   |   | (2,724 | ) |
| Transfers in (out) of Level 3 2                                                                                                                                |   |                                                                                | (64,566 | ) |   |   | (7,198 | ) |   |   | (58,270 | ) |   |   | - |   |   |   | - |   |   |   | (2,100 | ) |
| Balance, March 31, 2010                                                                                                                                        |   | $                                                                                   | 120,622 |   |   | $ | 325,173 |   |   | $ | - |   |   | $ | 1,747 |   |   | $ | (1,520 | ) |   | $ | 5,358 |   |
|                                                                                                                                                           |   |                                                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total gains (losses) for the period included in net income attributable to the change in unrealized gains and losses relating to assets held at March 31, 2010 |   | $                                                                                   | -       |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |

| 1 | Includes derivative financial instruments. |
|---|--------------------------------------------|

| 2  | Transfers in and out of Level 3 are from and to Level 2 and are due primarily to enhanced review and corroboration of market prices with multiple pricing vendors. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Amounts have been restated due to a misclassification of the amount of credit-related write-downs through net income related to Ambac.  Losses included in net income on fixed maturities available-for-sale: asset-backed securities increased $20,065 to ($27,380) from that previously reported of ($7,315).  Purchases, issuances and settlements on fixed maturities available-for-sale: asset-backed securities decreased $20,065 to ($66,122) from that previously reported of ($86,187).  The balance for fixed maturities available-for-sale: asset-backed securities as of March 31, 2010 did not change due to this line item misclassification. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                           |   | Three Months Ended March 31, 2010           |    |
|--------------------------------------------------------------------------------|--------|---------------------------------------------|---------|
|                                                                           |   | Net realized gains(losses) on investments 1 |    |   | Net investmentincome |   |
| Realized and unrealized gains and losses included in net income for the period |   | $                                           | (26,930 | ) |   | $ | - |   |

| 1 | Amounts have been restated due to a misclassification of the amount of credit-related write-downs through net income related to Ambac.  The realized and unrealized gains and losses included in net income for the period increased ($20,065) to ($26,930) from that previously reported of ($6,865). |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                          |   | March 31, 2010       |   |
|-------------------------------|--------|----------------------|--------|
|                          |   | Gross carryingamount |   |   | Accumulatedamortization |   |   | Net book value |   |
| Customer relationships        |   | $                    | 36,314 |   |   | $ | (10,705 | ) |   | $ | 25,609 |   |
| Preferred provider agreements |   |                 | 7,970  |   |   |   | (4,945 | ) |   |   | 3,025 |   |
| Total                         |   | $                    | 44,284 |   |   | $ | (15,650 | ) |   | $ | 28,634 |   |

|                          |   | December 31, 2009    |   |
|-------------------------------|--------|----------------------|--------|
|                          |   | Gross carryingamount |   |   | Accumulatedamortization |   |   | 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 |   |

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

----

|                                                                                                         |   | Three Months Ended March 31, 2010 |    |
|--------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                                                                         |   | Before-taxAmount                  |    |   | Tax (Expense)Benefit |   |   | Net-of-taxAmount |   |
| Unrealized holding gains (losses) arising during the period on available-for-sale fixed maturity investments |   | $                                 | 304,041 |   |   | $ | (106,415 | ) |   | $ | 197,626 |   |
| Net changes during the period related to cash flow hedges                                                    |   |                              | 2,795   |   |   |   | (978 | ) |   |   | 1,817 |   |
| Reclassification adjustment for (gains)losses realized in net income                                         |   |                              | 24,011  |   |   |   | (8,404 | ) |   |   | 15,607 |   |
| Net unrealized gains (losses)                                                                                |   |                              | 330,847 |   |   |   | (115,797 | ) |   |   | 215,050 |   |
| Future policy benefits, deferred acquisition costs and value of business acquired adjustments                |   |                              | (59,348 | ) |   |   | 20,772 |   |   |   | (38,576 | ) |
| Net unrealized gains (losses)                                                                                |   |                              | 271,499 |   |   |   | (95,025 | ) |   |   | 176,474 |   |
| Employee benefit plan adjustment                                                                             |   |                              | (317    | ) |   |   | 111 |   |   |   | (206 | ) |
| Other comprehensive income (loss)                                                                            |   | $                                 | 271,182 |   |   | $ | (94,914 | ) |   | $ | 176,268 |   |

|                                                                                                       |   | Year Ended December 31, 2009 |      |
|------------------------------------------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                                                       |   | Before-taxAmount             |      |   | Tax (Expense)Benefit |   |   | Net-of-taxAmount |   |
| 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 |   |

----

|                                             |   | Three Months Ended March 31, |   |
|--------------------------------------------------|--------|------------------------------|--------|
|                                             |   | 2010                         |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                             |   | Defined benefit pension plan |   |   | Post-retirement medical plan |   |
| Components of periodic (benefit) cost:           |   |                         |   |   |   |   |   |   |   |   |   |   |
| Service cost                                     |   | $                            | 1,008  |   |   | $ | 961 |   |   | $ | 176 |   |   | $ | 153 |   |
| Interest cost                                    |   |                         | 5,083  |   |   |   | 4,853 |   |   |   | 191 |   |   |   | 256 |   |
| Expected return on plan assets                   |   |                         | (4,946 | ) |   |   | (3,917 | ) |   |   | - |   |   |   | - |   |
| Amortization of transition obligation            |   |                         | (378   | ) |   |   | (378 | ) |   |   | - |   |   |   | - |   |
| Amortization of unrecognized prior service cost  |   |                         | 21     |   |   |   | 22 |   |   |   | (412 | ) |   |   | (412 | ) |
| Amortization of loss (gain) from earlier periods |   |                         | 1,571  |   |   |   | 2,664 |   |   |   | (102 | ) |   |   | - |   |
| Net periodic (benefit) cost                      |   | $                            | 2,359  |   |   | $ | 4,205 |   |   | $ | (147 | ) |   | $ | (3 | ) |

|                       |   | Three Months Ended March 31, |   |
|----------------------------|--------|------------------------------|--------|
|                       |   | 2010                         |   |   | 2009 |   |
| Current                    |   | $                            | 3,151  |   |   | $ | 3,618 |   |
| Deferred                   |   |                         | 14,782 |   |   |   | 11,829 |   |
| Total income tax provision |   | $                            | 17,933 |   |   | $ | 15,447 |   |

|                                                                     |   | Three Months Ended March 31, |   |
|--------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                     |   | 2010                         |   |   | 2009 |   |
| Statutory federal income tax rate                                        |   |                         | 35.0   | % |   |   | 35.0 | % |
| Income tax effect of:                                                    |   |                         |   |   |   |   |   |   |
| Investment income not subject to federal tax                             |   |                         | (2.0   | %) |   |   | (2.3 | %) |
| Tax credits                                                              |   |                         | (2.8   | %) |   |   | (2.2 | %) |
| State income taxes, net of federal benefit                               |   |                         | 0.7    | % |   |   | 0.8 | % |
| Provision for policyholders' share of earnings on participating business |   |                         | (0.1   | %) |   |   | - |   |
| Other, net                                                               |   |                         | 2.1    | % |   |   | (5.3 | %) |
| Effective federal income tax rate                                        |   |                         | 32.9   | % |   |   | 26.0 | % |

----

| Balance, January 1, 2010                                                                                                                                                         |   | $      | 125,878 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
| Decrease in deferred tax asset included in other comprehensive income related to the change in unrealized (gains) losses on invested assets, net of policyholder related amounts |   |   | (95,282 | )      |
| Increase in deferred tax asset related to income tax contingency provisions                                                                                                      |   |   | 1,739   |   |
| Decrease in deferred tax asset related to the condensed consolidated statement of income                                                                                         |   |   | (14,782 | )      |
| Balance, March 31, 2010                                                                                                                                                          |   | $      | 17,553  |   |

----

|                                       |   | Three Months Ended March 31, |    |
|--------------------------------------------|--------|------------------------------|---------|
| Revenues:                                  |   | 2010                         |    |   | 2009 |   |
| Premium income                             |   | $                            | 180,560 |   |   | $ | 114,093 |   |
| Fee income                                 |   |                         | 13,827  |   |   |   | 10,660 |   |
| Net investment income                      |   |                         | 173,735 |   |   |   | 173,013 |   |
| Net realized gains (losses) on investments |   |                         | (6,866  | ) |   |   | 4,378 |   |
| Total revenues                             |   |                         | 361,256 |   |   |   | 302,144 |   |
| Benefits and expenses:                     |   |                         |    |   |   |   |   |   |
| Policyholder benefits                      |   |                         | 314,313 |   |   |   | 241,796 |   |
| Operating expenses                         |   |                         | 24,780  |   |   |   | 22,593 |   |
| Total benefits and expenses                |   |                         | 339,093 |   |   |   | 264,389 |   |
| Income before income taxes                 |   |                         | 22,163  |   |   |   | 37,755 |   |
| Income tax expense                         |   |                         | 7,627   |   |   |   | 10,303 |   |
| Net income                                 |   | $                            | 14,536  |   |   | $ | 27,452 |   |

|                                       |   | Three Months Ended March 31, |    |
|--------------------------------------------|--------|------------------------------|---------|
|                                       |   | 2010                         |    |   | 2009 |   |
| Revenues:                                  |   |                         |    |   |   |   |
| Premium income                             |   | $                            | 1,106   |   |   | $ | 817 |   |
| Fee income                                 |   |                         | 94,647  |   |   |   | 72,011 |   |
| Net investment income                      |   |                         | 94,276  |   |   |   | 97,283 |   |
| Net realized gains (losses) on investments |   |                         | (13,730 | ) |   |   | (2,233 | ) |
| Total revenues                             |   |                         | 176,299 |   |   |   | 167,878 |   |
| Benefits and expenses:                     |   |                         |    |   |   |   |   |   |
| Policyholder benefits                      |   |                         | 52,381  |   |   |   | 57,745 |   |
| Operating expenses                         |   |                         | 94,140  |   |   |   | 85,016 |   |
| Total benefits and expenses                |   |                         | 146,521 |   |   |   | 142,761 |   |
| Income before income taxes                 |   |                         | 29,778  |   |   |   | 25,117 |   |
| Income tax expense                         |   |                         | 9,357   |   |   |   | 6,396 |   |
| Net income                                 |   | $                            | 20,421  |   |   | $ | 18,721 |   |

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|                              |   | Three Months Ended March 31, |   |
|-----------------------------------|--------|------------------------------|--------|
| Revenues:                         |   | 2010                         |   |   | 2009 |   |
| Premium income                    |   | $                            | 29,328 |   |   | $ | 27,191 |   |
| Fee income                        |   |                         | 1,165  |   |   |   | 1,223 |   |
| Net investment income             |   |                         | 11,345 |   |   |   | 11,056 |   |
| Net realized gains on investments |   |                         | 342    |   |   |   | 148 |   |
| Total revenues                    |   |                         | 42,180 |   |   |   | 39,618 |   |
| Benefits and expenses:            |   |                         |   |   |   |   |   |   |
| Policyholder benefits             |   |                         | 23,350 |   |   |   | 25,819 |   |
| Operating expenses                |   |                         | 16,191 |   |   |   | 17,225 |   |
| Total benefits and expenses       |   |                         | 39,541 |   |   |   | 43,044 |   |
| Income (loss) before income taxes |   |                         | 2,639  |   |   |   | (3,426 | ) |
| Income tax expense (benefit)      |   |                         | 949    |   |   |   | (1,252 | ) |
| Net income (loss)                 |   | $                            | 1,690  |   |   | $ | (2,174 | ) |

----

----

| Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------|

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|              |   | March 31, |   |
|-------------------|--------|-----------|--------|
| S&P 500 Index |   | 2010      |   |   | 2009 |   |
| Index close       |   |      | 1,169  |   |   |   | 798 |   |
| Index average     |   |      | 1,124  |   |   |   | 808 |   |

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|                                   |   | Three Months Ended March 31, |   |
|----------------------------------------|--------|------------------------------|--------|
| Income Statement Data (In millions)    |   | 2010                         |   |   | 2009 |   |
| Premium income                         |   | $                            | 211    |   |   | $ | 142 |   |
| Fee income                             |   |                         | 110    |   |   |   | 84 |   |
| Net investment income                  |   |                         | 279    |   |   |   | 281 |   |
| Net realized investment gains (losses) |   |                         | (20    | ) |   |   | 2 |   |
| Total revenues                         |   |                         | 580    |   |   |   | 509 |   |
| Policyholder benefits                  |   |                         | 390    |   |   |   | 325 |   |
| Operating expenses                     |   |                         | 135    |   |   |   | 125 |   |
| Total benefits and expenses            |   |                         | 525    |   |   |   | 450 |   |
| Income before income taxes             |   |                         | 55     |   |   |   | 59 |   |
| Income tax expense                     |   |                         | 18     |   |   |   | 15 |   |
| Net income                             |   | $                            | 37     |   |   | $ | 44 |   |

----

|                                   |   | Three Months Ended March 31, |   |
|----------------------------------------|--------|------------------------------|--------|
| Income Statement Data (In millions)    |   | 2010                         |   |   | 2009 |   |
| Premium income                         |   | $                            | 180    |   |   | $ | 114 |   |
| Fee income                             |   |                         | 14     |   |   |   | 11 |   |
| Net investment income                  |   |                         | 174    |   |   |   | 173 |   |
| Net realized investment gains (losses) |   |                         | (7     | ) |   |   | 4 |   |
| Total revenues                         |   |                         | 361    |   |   |   | 302 |   |
| Policyholder benefits                  |   |                         | 314    |   |   |   | 242 |   |
| Operating expenses                     |   |                         | 25     |   |   |   | 23 |   |
| Total benefits and expenses            |   |                         | 339    |   |   |   | 265 |   |
| Income before income taxes             |   |                         | 22     |   |   |   | 37 |   |
| Income tax expense                     |   |                         | 8      |   |   |   | 10 |   |
| Net income                             |   | $                            | 14     |   |   | $ | 27 |   |

|                 |   | March 31, |   |
|----------------------|--------|-----------|--------|
| (In thousands)       |   | 2010      |   |   | 2009 |   |
| Participant Accounts |   |      | 519    |   |   |   | 529 |   |

----

|                                |   | Three Months Ended March 31, |   |
|-------------------------------------|--------|------------------------------|--------|
| Income Statement Data (In millions) |   | 2010                         |   |   | 2009 |   |
| Premium income                      |   | $                            | 1      |   |   | $ | 1 |   |
| Fee income                          |   |                         | 95     |   |   |   | 72 |   |
| Net investment income               |   |                         | 94     |   |   |   | 97 |   |
| Net realized investment losses      |   |                         | (14    | ) |   |   | (2 | ) |
| Total revenues                      |   |                         | 176    |   |   |   | 168 |   |
| Policyholder benefits               |   |                         | 52     |   |   |   | 58 |   |
| Operating expenses                  |   |                         | 94     |   |   |   | 85 |   |
| Total benefits and expenses         |   |                         | 146    |   |   |   | 143 |   |
| Income before income taxes          |   |                         | 30     |   |   |   | 25 |   |
| Income tax expense                  |   |                         | 9      |   |   |   | 6 |   |
| Net income                          |   | $                            | 21     |   |   | $ | 19 |   |

|                 |   | March 31, |   |
|----------------------|--------|-----------|--------|
| (In thousands)       |   | 2010      |   |   | 2009 |   |
| Participant Accounts |   |      | 4,376  |   |   |   | 3,811 |   |

----

|                                                                                |   | March 31, |    |
|-------------------------------------------------------------------------------------|--------|-----------|---------|
| (In millions)                                                                       |   | 2010      |    |   | 2009 |   |
| General Account - Fixed Options:                                                    |   |      |    |   |   |   |
|    Public / Non-profit                                                    |   | $         | 3,517   |   |   | $ | 3,338 |   |
| 401(k)                                                                              |   |      | 3,705   |   |   |   | 3,458 |   |
|                                                                                |   | $         | 7,222   |   |   | $ | 6,796 |   |
| Separate Accounts - Variable Options:                                               |   |      |    |   |   |   |   |   |
|   Public / Non-profit                                                          |   | $         | 7,528   |   |   | $ | 6,452 |   |
|   401(k)                                                                       |   |      | 6,508   |   |   |   | 4,347 |   |
|                                                                                |   | $         | 14,036  |   |   | $ | 10,799 |   |
| Unaffiliated Retail:                                                                |   |      |    |   |   |   |   |   |
|       Investment Options and Administrative Services Only: |   |      |    |   |   |   |   |   |
| Public / Non-profit                                                                 |   | $         | 51,773  |   |   | $ | 36,128 |   |
| 401(k)                                                                              |   |      | 21,429  |   |   |   | 14,244 |   |
| Institutional                                                                       |   |      | 37,973  |   |   |   | 23,274 |   |
|                                                                                |   | $         | 111,175 |   |   | $ | 73,646 |   |

----

|                                   |   | Three Months Ended March 31, |   |
|----------------------------------------|--------|------------------------------|--------|
| Income Statement Data (In millions)    |   | 2010                         |   |   | 2009 |   |
| Premium income                         |   | $                            | 30     |   |   | $ | 27 |   |
| Fee income                             |   |                         | 1      |   |   |   | 1 |   |
| Net investment income                  |   |                         | 11     |   |   |   | 11 |   |
| Net realized investment gains (losses) |   |                         | 1      |   |   |   | - |   |
| Total revenues                         |   |                         | 43     |   |   |   | 39 |   |
| Policyholder benefits                  |   |                         | 24     |   |   |   | 25 |   |
| Operating expenses                     |   |                         | 16     |   |   |   | 17 |   |
| Total benefits and expenses            |   |                         | 40     |   |   |   | 42 |   |
| Income before income taxes             |   |                         | 3      |   |   |   | (3 | ) |
| Income tax expense                     |   |                         | 1      |   |   |   | (1 | ) |
| Net income (loss)                      |   | $                            | 2      |   |   | $ | (2 | ) |

| (In millions)                                                   |   | March 31, 2010 |   |   | December 31, 2009 |   |
|-----------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
| Fixed maturities, available-for-sale                            |   | $              | 14,406 |   |              |   | 68.4 | % |   | $ | 13,918 |   |   |   | 68.3 | % |
| Fixed maturities, held for trading                              |   |           | 166    |   |              |   | 0.8 | % |   |   | 140 |   |   |   | 0.7 | % |
| Mortgage loans on real estate                                   |   |           | 1,564  |   |              |   | 7.4 | % |   |   | 1,554 |   |   |   | 7.6 | % |
| Equity investments, available-for-sale                          |   |           | 22     |   |              |   | 0.1 | % |   |   | 26 |   |   |   | 0.1 | % |
| Policy loans                                                    |   |           | 3,966  |   |              |   | 18.8 | % |   |   | 3,972 |   |   |   | 19.5 | % |
| Short-term investments, available-for-sale                      |   |           | 669    |   |              |   | 3.2 | % |   |   | 488 |   |   |   | 2.4 | % |
| Limited partnership and limited liability corporation interests |   |           | 246    |   |              |   | 1.2 | % |   |   | 254 |   |   |   | 1.3 | % |
| Other investments                                               |   |           | 24     |   |              |   | 0.1 | % |   |   | 24 |   |   |   | 0.1 | % |
| Total investment assets                                         |   | $              | 21,063 |   |              |   | 100.0 | % |   | $ | 20,376 |   |   |   | 100.0 | % |

----

| Credit rating                       |   | March 31, 2010 |   |   | December 31, 2009 1 |   |
|-------------------------------------|--------|----------------|--------|--------|---------------------|--------|
| AAA                                 |   |           | 40.1   | %      |                |   | 39.2 | % |
| AA                                  |   |           | 11.9   | %      |                |   | 12.3 | % |
| A                                   |   |           | 21.8   | %      |                |   | 21.6 | % |
| BBB                                 |   |           | 23.4   | %      |                |   | 23.4 | % |
| BB and below (Non-investment grade) |   |           | 2.8    | %      |                |   | 3.5 | % |
| Total                               |   |           | 100.0  | %      |                |   | 100.0 | % |

| 1 | The December 31, 2009 percentages were updated to reflect the non-agency RMBS ratings as determined by the revised NAIC ratings methodology. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------|

| Sector            |   | March 31, 2010 |   |   | December 31, 2009 |   |
|-------------------|--------|----------------|--------|--------|-------------------|--------|
| Utility           |   |           | 14.7   | %      |              |   | 15.0 | % |
| Finance           |   |           | 10.4   | %      |              |   | 10.1 | % |
| Consumer          |   |           | 8.7    | %      |              |   | 8.6 | % |
| Natural resources |   |           | 5.6    | %      |              |   | 6.3 | % |
| Transportation    |   |           | 2.5    | %      |              |   | 2.6 | % |
| Other             |   |           | 8.1    | %      |              |   | 8.6 | % |

----

|                                                                |   | Guarantor Quality Rating |   |   | Indirect Exposure |   |
|---------------------------------------------------------------------|--------|--------------------------|--------|--------|-------------------|--------|
| Guarantor (In millions)                                             |   | S&P                  |   |   | Moody's           |   |   | March 31, 2010 |   |
| MBIA, Inc.                                                          |   | BB+                      |   |   | B3                |   |   | $ | 272 |   |
| Assured Guaranty Corp. (formerly Financial Security Assurance, Inc) |   | AAA                      |   |   | Aa3               |   |   |   | 115 |   |
| Berkshire Hathaway Assurance Corp.                                  |   | AAA                      |   |   | Aaa               |   |   |   | 35 |   |
| National Public Finance Guaranty Corporation                        |   | A                        |   |   | Baa1              |   |   |   | 108 |   |
|                                                                |   |                     |   |   |              |   |   |   |   | $ | 530 |   |

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| ·   | The Company holds approximately $5,400 million in various mortgage-backed and asset-backed collateralized mortgage securities including securities backed by U.S. agencies, of which $2,760 million are experiencing unrealized losses of approximately $354 million at March 31, 2010.  Included in this amount is $155 million which has declined and remained below amortized cost by 20% or more.  Of the $354 million in unrealized losses, approximately $28 million is related to securities on which there had been a credit rating downgrade since December 31, 2009.  Of the $28 million, $25 million are rated investment grade and $3 million are rated non-investment grade at March 31, 2010.  Future changes in the fair value of these securities will be dependent upon the continued increase in market liquidity and improvements in general market conditions. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company holds approximately $7,228 million of corporate debt securities of which $1,526 million are experiencing unrealized losses of approximately $163 million at March 31, 2010.  Included in this amount is $87 million which has declined and remained below amortized cost by 20% or more.  Approximately $6 million of the $163 million was related to securities on which there had been a credit rating downgrade since December 31, 2009.  Of the $6 million, all are rated investment grade. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Item 6. | Exhibits |
|---------|----------|

| Exhibit Number         |   | Title                                                                                                                            |   | Page |
|------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|--------|------|
|    31.1 |   |                Rule 13a-14(a)/15-d14(a) Certification |   | 50   |
|    31.2 |   |                Rule 13a-14(a)/15-d14(a) Certification |   | 51   |
| 32                     |   |                18 U.S.C. 1350 Certification           |   | 52   |

| By:    | /s/Glen R. Derback                                     | Date:  | August 13, 2010 |
|--------|--------------------------------------------------------|--------|-----------------|
|   | Glen R. Derback, Senior Vice President and Controller  |   |            |   |
|   | (Duly authorized officer and chief accounting officer) |   |            |   |

----