----

----

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

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

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

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

|   | Yes 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 |
|--------|-------|------|

----

----

----

Ta

|    |                  |                                                                                                                                                  | Page Number |
|---------|-----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|
|    |                  |                                                                                                                                                  |        |
| Part I  | Financial Information | 3                                                                                                                                                     |
|    |                  |                                                                                                                                                  |        |
|    | Item 1                | Interim Financial Statements                                                                                                                          | 3           |
|    |                  |                                                                                                                                                  |        |
|    |                  | Condensed Consolidated Balance Sheets at June 30, 2010 (Unaudited) and December 31, 2009                                                              | 3           |
|    |                  |                                                                                                                                                  |        |
|    |                  | Condensed Consolidated Statements of Income for the Three and Six Months Ended June 30, 2010 and 2009 (Unaudited)                                     | 5           |
|    |                  |                                                                                                                                                  |        |
|    |                  | Condensed Consolidated Statements of Stockholder's Equity for the Year Ended December 31, 2009 and for the Six Months Ended June 30, 2010 (Unaudited) | 6           |
|    |                  |                                                                                                                                                  |        |
|    |                  | Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2010 and 2009 (Unaudited)                                           | 7           |
|    |                  |                                                                                                                                                  |        |
|    |                  | Notes to Condensed Consolidated Financial Statements (Unaudited)                                                                                      | 9           |
|    |                  |                                                                                                                                                  |        |
|    | Item 2                | Management's Discussion and Analysis of Financial Condition and Results of Operations                                                                 | 40          |
|    |                  |                                                                                                                                                  |        |
|    | Item 3                | Quantitative and Qualitative Disclosures About Market Risk                                                                                            | 56          |
|    |                  |                                                                                                                                                  |        |
|    | Item 4T               | Controls and Procedures                                                                                                                               | 56          |
|    |                  |                                                                                                                                                  |        |
| Part II | Other Information     | 57                                                                                                                                                    |
|    |                  |                                                                                                                                                  |        |
|    | Item 1                | Legal Proceedings                                                                                                                                     | 57          |
|    |                  |                                                                                                                                                  |        |
|    | Item 1A               | Risk Factors                                                                                                                                          | 57          |
|    |                  |                                                                                                                                                  |        |
|    | Item 6                | Exhibits                                                                                                                                              | 57          |
|    |                  |                                                                                                                                                  |        |
|    |                  | Signature                                                                                                                                             | 58          |

----

Table of Contents

| Part I | Financial Information |
|--------|-----------------------|

| Item 1. | Interim Financial Statements |
|---------|------------------------------|

GR

|                                                                                             |   | June 30, 2010 |       |   | December 31, 2009 |   |
|--------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|------------------------|--------|
| Assets                                                                                           |   |               |       |   |                   |   |
| Investments:                                                                                     |   |               |       |   |                   |   |
| Fixed maturities, available-for-sale, at fair value (amortized cost $14,654,632 and $14,117,799) |   | $                  | 15,234,320 |   |                   | $      | 13,917,813 |   |
| Fixed maturities, held for trading, at fair value (amortized cost $118,152 and $135,425)         |   |               | 128,170    |   |                   |   | 140,174 |   |
| Mortgage loans on real estate (net of allowances of $14,854 and $14,854)                         |   |               | 1,599,233  |   |                   |   | 1,554,132 |   |
| Equity investments, available-for-sale, at fair value (cost $15,659 and $18,860)                 |   |               | 19,628     |   |                   |   | 25,679 |   |
| Policy loans                                                                                     |   |               | 4,002,906  |   |                   |   | 3,971,833 |   |
| Short-term investments, available-for-sale (cost approximates fair value)                        |   |               | 706,840    |   |                   |   | 488,480 |   |
| Limited partnership and other corporation interests                                              |   |               | 235,366    |   |                   |   | 253,605 |   |
| Other investments                                                                                |   |               | 25,395     |   |                   |   | 24,312 |   |
| Total investments                                                                                |   |               | 21,951,858 |   |                   |   | 20,376,028 |   |
|                                                                                             |   |               |       |   |                   |   |   |   |
| Other assets:                                                                                    |   |               |       |   |                   |   |   |   |
| Cash                                                                                             |   |               | 8,539      |   |                   |   | 170,978 |   |
| Reinsurance receivable                                                                           |   |               | 587,000    |   |                   |   | 573,963 |   |
| Deferred acquisition costs and value of business acquired                                        |   |               | 339,726    |   |                   |   | 481,044 |   |
| Investment income due and accrued                                                                |   |               | 218,178    |   |                   |   | 225,449 |   |
| Premiums in course of collection                                                                 |   |               | 20,272     |   |                   |   | 9,015 |   |
| Deferred income tax assets, net                                                                  |   |               | -          |   |                   |   | 125,878 |   |
| Collateral under securities lending agreements                                                   |   |               | 61,095     |   |                   |   | 38,296 |   |
| Due from parent and affiliates                                                                   |   |               | 223,259    |   |                   |   | 196,697 |   |
| Goodwill                                                                                         |   |               | 105,255    |   |                   |   | 105,255 |   |
| Other intangible assets                                                                          |   |               | 27,637     |   |                   |   | 29,632 |   |
| Other assets                                                                                     |   |               | 486,157    |   |                   |   | 491,471 |   |
| Assets of discontinued operations                                                                |   |               | 97,454     |   |                   |   | 87,719 |   |
| Separate account assets                                                                          |   |               | 19,975,473 |   |                   |   | 18,886,901 |   |
| Total assets                                                                                     |   | $                  | 44,101,903 |   |                   | $      | 41,798,326 |   |

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

----

Table of Contents

|                                                                                              |   | June 30, 2010 |       |   | December 31, 2009 |   |
|---------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|------------------------|--------|
| Liabilities and stockholder's equity                                                              |   |               |       |   |                   |   |
| Policy benefit liabilities:                                                                       |   |               |       |   |                   |   |
| Future policy benefits                                                                            |   | $                  | 19,590,807 |   |                   | $      | 18,972,560 |   |
| Policy and contract claims                                                                        |   |               | 279,313    |   |                   |   | 286,176 |   |
| Policyholders' funds                                                                              |   |               | 371,813    |   |                   |   | 358,795 |   |
| Provision for policyholders' dividends                                                            |   |               | 69,205     |   |                   |   | 69,494 |   |
| Undistributed earnings on participating business                                                  |   |               | 5,886      |   |                   |   | 3,580 |   |
| Total policy benefit liabilities                                                                  |   |               | 20,317,024 |   |                   |   | 19,690,605 |   |
|                                                                                              |   |               |       |   |                   |   |   |   |
| General liabilities:                                                                              |   |               |       |   |                   |   |   |   |
| Due to parent and affiliates                                                                      |   |               | 538,598    |   |                   |   | 537,563 |   |
| Repurchase agreements                                                                             |   |               | 693,230    |   |                   |   | 491,338 |   |
| Commercial paper                                                                                  |   |               | 99,003     |   |                   |   | 97,613 |   |
| Payable under securities lending agreements                                                       |   |               | 61,095     |   |                   |   | 38,296 |   |
| Deferred income tax liabilities, net                                                              |   |               | 110,284    |   |                   |   | - |   |
| Other liabilities                                                                                 |   |               | 498,708    |   |                   |   | 618,508 |   |
| Liabilities of discontinued operations                                                            |   |               | 97,340     |   |                   |   | 87,719 |   |
| Separate account liabilities                                                                      |   |               | 19,975,473 |   |                   |   | 18,886,901 |   |
| Total liabilities                                                                                 |   |               | 42,390,755 |   |                   |   | 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                                                                        |   |               | 763,012    |   |                   |   | 761,330 |   |
| Accumulated other comprehensive income (loss)                                                     |   |               | 255,482    |   |                   |   | (132,721 | ) |
| Retained earnings                                                                                 |   |               | 685,622    |   |                   |   | 714,142 |   |
| Total stockholder's equity                                                                        |   |               | 1,711,148  |   |                   |   | 1,349,783 |   |
| Total liabilities and stockholder's equity                                                        |   | $                  | 44,101,903 |   |                   | $      | 41,798,326 |   |

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

----

Table of Contents

GR

|                                                                                                 |   | Three months ended June 30, |    |   | Six months ended June 30, |   |
|------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|--------------------------------|--------|
|                                                                                                 |   | 2010                             |    |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                                                                                 |   |                             |    |   |                           |   |   |   |   |   |   |   |
| Revenues:                                                                                            |   |                             |    |   |                           |   |   |   |   |   |   |   |
| Premium income, net of premiums ceded of $18,540, $18,950,$24,237 and $25,041                        |   | $                                | 164,364 |   |                           | $      | 120,248 |   |   | $ | 375,358 |   |   | $ | 262,349 |   |
| Fee income                                                                                           |   |                             | 110,928 |   |                           |   | 90,370 |   |   |   | 220,567 |   |   |   | 174,264 |   |
| Net investment income                                                                                |   |                             | 288,744 |   |                           |   | 273,030 |   |   |   | 568,100 |   |   |   | 554,382 |   |
| Realized investment gains and losses, net:                                                           |   |                             |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Total other-than-temporary losses                                                                    |   |                             | (20,868 | )      |                           |   | (950 | ) |   |   | (73,923 | ) |   |   | (3,412 | ) |
| Other-than-temporary losses transferred to other comprehensive income                                |   |                             | -       |   |                           |   | - |   |   |   | 15,704 |   |   |   | - |   |
| Other realized investment gains, net                                                                 |   |                             | 804     |   |                           |   | 20,030 |   |   |   | 17,901 |   |   |   | 24,785 |   |
| Total realized investment gains (losses), net                                                        |   |                             | (20,064 | )      |                           |   | 19,080 |   |   |   | (40,318 | ) |   |   | 21,373 |   |
| Total revenues                                                                                       |   |                             | 543,972 |   |                           |   | 502,728 |   |   |   | 1,123,707 |   |   |   | 1,012,368 |   |
| Benefits and expenses:                                                                               |   |                             |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Life and other policy benefits, net of reinsurance recoveries of $5,677,$19,850, $11,826 and $31,216 |   |                             | 158,947 |   |                           |   | 171,215 |   |   |   | 306,800 |   |   |   | 316,045 |   |
| Increase (decrease) in future policy benefits                                                        |   |                             | 19,456  |   |                           |   | (10,908 | ) |   |   | 121,187 |   |   |   | 12,897 |   |
| Interest paid or credited to contractholders                                                         |   |                             | 132,856 |   |                           |   | 137,136 |   |   |   | 249,146 |   |   |   | 268,331 |   |
| Provision for policyholders' share of earnings on participating business                             |   |                             | 267     |   |                           |   | 378 |   |   |   | 653 |   |   |   | 312 |   |
| Dividends to policyholders                                                                           |   |                             | 13,429  |   |                           |   | 13,192 |   |   |   | 37,213 |   |   |   | 38,788 |   |
| Total benefits                                                                                       |   |                             | 324,955 |   |                           |   | 311,013 |   |   |   | 714,999 |   |   |   | 636,373 |   |
| General insurance expenses                                                                           |   |                             | 121,311 |   |                           |   | 107,423 |   |   |   | 236,287 |   |   |   | 206,173 |   |
| Amortization of deferred acquisition costs and value of business acquired                            |   |                             | 12,533  |   |                           |   | 19,491 |   |   |   | 23,333 |   |   |   | 36,142 |   |
| Interest expense                                                                                     |   |                             | 9,353   |   |                           |   | 9,366 |   |   |   | 18,688 |   |   |   | 18,799 |   |
| Total benefits and expenses, net                                                                     |   |                             | 468,152 |   |                           |   | 447,293 |   |   |   | 993,307 |   |   |   | 897,487 |   |
| Income from operations before income taxes                                                           |   |                             | 75,820  |   |                           |   | 55,435 |   |   |   | 130,400 |   |   |   | 114,881 |   |
| Income tax expense                                                                                   |   |                             | 28,320  |   |                           |   | 17,342 |   |   |   | 46,253 |   |   |   | 32,789 |   |
| Net income                                                                                           |   | $                                | 47,500  |   |                           | $      | 38,093 |   |   | $ | 84,147 |   |   | $ | 82,092 |   |

----

Table of Contents

GR

|                                                                                                                                         |   |         |   |   |                       |   |    | Accumulated Other Comprehensive Income (Loss) |   |   |                              |   |   |              |    |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|----------------------------|--------|---------|-----------------------------------------------|--------|--------|-----------------------------------|--------|--------|-------------------|---------|
|                                                                                                                                         |   | Common stock |   |   | Additional paid-in capital |   |    | Unrealized gains (losses)on securities        |   |   | Employee benefit plan adjustments |   |   | Retained earnings |    |   | 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 related offsets and 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 the ASC section 320-10-65"Investments - Debt and Equity Securities" on available-for-sale securities, net of income taxes |   |         |   |   |                       |   |    |                                          |   |   | (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                                                                                                                                   |   |         |   |   |                       |   |    |                                          |   |   |                              |   |   |              |    |   |   |   | 84,147 |   |   |   | 84,147 |   |
| Other comprehensive income (loss), net of related offsets and income taxes:                                                                  |   |         |   |   |                       |   |    |                                          |   |   |                              |   |   |              |    |   |   |   |   |   |   |   |   |   |
| Non-credit component of impaired losses on fixed maturities available-for sale                                                               |   |         |   |   |                       |   |    |                                          |   |   | 14,684                            |   |   |              |    |   |   |   |   |   |   |   | 14,684 |   |
| Net change in unrealized gains (losses)                                                                                                      |   |         |   |   |                       |   |    |                                          |   |   | 373,725                           |   |   |              |    |   |   |   |   |   |   |   | 373,725 |   |
| Employee benefit plan adjustment                                                                                                             |   |         |   |   |                       |   |    |                                          |   |   |                              |   |   |              | (206    | ) |   |   |   |   |   |   | (206 | ) |
| Total comprehensive income                                                                                                                   |   |         |   |   |                       |   |    |                                          |   |   |                              |   |   |              |    |   |   |   |   |   |   |   | 388,203 |   |
| Dividends                                                                                                                                    |   |         |   |   |                       |   |    |                                          |   |   |                              |   |   |              |    |   |   |   | (112,667 | ) |   |   | (112,667 | ) |
| Capital contribution - stock-based compensation                                                                                              |   |         |   |   |                       |   | 894     |                                          |   |   |                              |   |   |              |    |   |   |   |   |   |   |   | 894 |   |
| Income tax benefit on stock-based compensation                                                                                               |   |         |   |   |                       |   | 788     |                                          |   |   |                              |   |   |              |    |   |   |   |   |   |   |   | 788 |   |
| Balances, June 30, 2010                                                                                                                      |   | $            | 7,032  |   |                       | $      | 763,012 |                                          |   | $      | 298,299                           |   |   | $                 | (42,817 | ) |   | $ | 685,622 |   |   | $ | 1,711,148 |   |

----

Table of Contents

GR

|                                                            |   | Six months ended June 30, |       |
|-----------------------------------------------------------------|--------|--------------------------------|------------|
|                                                            |   | 2010                           |       |   | 2009 |   |
|                                                            |   |                           |       |   |   |   |
| Cash flows from operating activities:                           |   |                           |       |   |   |   |
| Net income                                                      |   | $                              | 84,147     |   |   | $ | 82,092 |   |
| Adjustments to reconcile net income to net cash provided by     |   |                           |       |   |   |   |   |   |
| (used in) operating activities:                                 |   |                           |       |   |   |   |   |   |
| Earnings allocated to participating policyholders               |   |                           | 653        |   |   |   | 312 |   |
| Amortization of premiums (accretion) of discounts               |   |                           |       |   |   |   |   |   |
| on investments, net                                             |   |                           | (18,415    | ) |   |   | (30,591 | ) |
| Net realized (gains) losses on investments                      |   |                           | 40,318     |   |   |   | (21,373 | ) |
| Net sales (purchases) of trading securities                     |   |                           | 17,552     |   |   |   | (440,289 | ) |
| Interest credited to contractholders                            |   |                           | 246,792    |   |   |   | 264,691 |   |
| Depreciation and amortization                                   |   |                           | 31,708     |   |   |   | 45,402 |   |
| Deferral of acquisition costs                                   |   |                           | (42,122    | ) |   |   | (31,238 | ) |
| Deferred income taxes                                           |   |                           | 28,960     |   |   |   | 31,784 |   |
| Changes in assets and liabilities:                              |   |                           |       |   |   |   |   |   |
| Policy benefit liabilities                                      |   |                           | 55,692     |   |   |   | (24,306 | ) |
| Reinsurance receivable                                          |   |                           | (22,689    | ) |   |   | (3,520 | ) |
| Accrued interest and other receivables                          |   |                           | (3,986     | ) |   |   | (8,702 | ) |
| Other, net                                                      |   |                           | (71,630    | ) |   |   | (16,187 | ) |
| Net cash provided by (used in) operating activities             |   |                           | 346,980    |   |   |   | (151,925 | ) |
|                                                            |   |                           |       |   |   |   |   |   |
|                                                            |   |                           |       |   |   |   |   |   |
| Cash flows from investing activities:                           |   |                           |       |   |   |   |   |   |
| Proceeds from sales, maturities and redemptions of investments: |   |                           |       |   |   |   |   |   |
| Fixed maturities available-for-sale                             |   |                           | 2,284,516  |   |   |   | 2,053,704 |   |
| Mortgage loans on real estate                                   |   |                           | 88,007     |   |   |   | 44,161 |   |
| Equity investments and other limited partnership interests      |   |                           | 26,103     |   |   |   | 26,519 |   |
| Purchases of investments:                                       |   |                           |       |   |   |   |   |   |
| Fixed maturities available-for-sale                             |   |                           | (2,690,636 | ) |   |   | (2,038,426 | ) |
| Mortgage loans on real estate                                   |   |                           | (135,534   | ) |   |   | (146,901 | ) |
| Equity investments and other limited partnership interests      |   |                           | (3,081     | ) |   |   | (5,560 | ) |
| Net change in short-term investments                            |   |                           | (417,605   | ) |   |   | 160,994 |   |
| Net change in repurchase agreements                             |   |                           | 201,892    |   |   |   | (72,507 | ) |
| Other, net                                                      |   |                           | 26,779     |   |   |   | 9,224 |   |
| Net cash provided by (used in) investing activities             |   |                           | (619,559   | ) |   |   | 31,208 |   |

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

----

Table of Contents

|                                                                |   | Six months ended June 30, |      |
|---------------------------------------------------------------------|--------|--------------------------------|-----------|
|                                                                |   | 2010                           |      |   | 2009 |   |
|                                                                |   |                           |      |   |   |   |
| Cash flows from financing activities:                               |   |                           |      |   |   |   |
| Contract deposits                                                   |   | $                              | 1,032,225 |   |   | $ | 968,251 |   |
| Contract withdrawals                                                |   |                           | (786,447  | ) |   |   | (769,908 | ) |
| Change in due to parent and affiliates                              |   |                           | (25,527   | ) |   |   | (51,300 | ) |
| Dividends paid                                                      |   |                           | (112,667  | ) |   |   | (24,682 | ) |
| Net commercial paper borrowings (repayments)                        |   |                           | 1,390     |   |   |   | (26,977 | ) |
| Change in bank overdrafts                                           |   |                           | 378       |   |   |   | 4,747 |   |
| Income tax benefit of stock option exercises                        |   |                           | 788       |   |   |   | 219 |   |
| Net cash provided by financing activities                           |   |                           | 110,140   |   |   |   | 100,350 |   |
|                                                                |   |                           |      |   |   |   |   |   |
| Net decrease in cash                                                |   |                           | (162,439  | ) |   |   | (20,367 | ) |
| Cash, beginning of period                                           |   |                           | 170,978   |   |   |   | 28,352 |   |
| Cash, end of period                                                 |   | $                              | 8,539     |   |   | $ | 7,985 |   |
|                                                                |   |                           |      |   |   |   |   |   |
|                                                                |   |                           |      |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                  |   |                           |      |   |   |   |   |   |
| Net cash paid during the periods for:                               |   |                           |      |   |   |   |   |   |
| Income taxes                                                        |   | $                              | 480       |   |   | $ | 2,463 |   |
| Net income tax payments withheld and remitted to taxing authorities |   |                           | 27,768    |   |   |   | 29,109 |   |
| Interest                                                            |   |                           | 18,688    |   |   |   | 18,799 |   |
|                                                                |   |                           |      |   |   |   |   |   |
| Non-cash investing and financing transactions during the periods:   |   |                           |      |   |   |   |   |   |
| Share-based compensation expense                                    |   |                           | 894       |   |   |   | 1,311 |   |

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

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|                                                            |   | As previously reported |       |   | Adjustments |   |     | As restated |   |
|-----------------------------------------------------------------|--------|------------------------|------------|--------|-------------|--------|----------|-------------|--------|
| Cash flows from operating activities:                           |   |                   |       |   |        |   |     |        |   |
| Net purchases of trading securities                             |   | $                      | (496,090   | )      |        | $      | 55,801   |        |   | $ | (440,289 | ) |
| Changes in assets and liabilities:                              |   |                   |       |   |        |   |     |        |   |   |   |   |
| Policy benefit liabilities                                      |   |                   | (24,430    | )      |        |   | 124      |        |   |   | (24,306 | ) |
| Other, net                                                      |   |                   | 87,087     |   |        |   | (103,274 | )           |   |   | (16,187 | ) |
| Net cash provided by (used in) operating activities             |   |                   | (104,576   | )      |        |   | (47,349  | )           |   |   | (151,925 | ) |
|                                                            |   |                   |       |   |        |   |     |        |   |   |   |   |
| Cash flows from investing activities:                           |   |                   |       |   |        |   |     |        |   |   |   |   |
| Proceeds from sales, maturities and redemptions of investments: |   |                   |       |   |        |   |     |        |   |   |   |   |
| Fixed maturities available-for-sale                             |   |                   | 2,009,873  |   |        |   | 43,831   |        |   |   | 2,053,704 |   |
| Equity investments and other limited partnership interests      |   |                   | 26,195     |   |        |   | 324      |        |   |   | 26,519 |   |
| Purchases of investments:                                       |   |                   |       |   |        |   |     |        |   |   |   |   |
| Fixed maturities available-for-sale                             |   |                   | (2,093,958 | )      |        |   | 55,532   |        |   |   | (2,038,426 | ) |
| Equity investments and other limited partnership interests      |   |                   | (5,752     | )      |        |   | 192      |        |   |   | (5,560 | ) |
| Net change in short-term investments                            |   |                   | 123,981    |   |        |   | 37,013   |        |   |   | 160,994 |   |
| Other, net                                                      |   |                   | 93,315     |   |        |   | (84,091  | )           |   |   | 9,224 |   |
| Net cash provided by (used in) investing activities             |   |                   | (21,593    | )      |        |   | 52,801   |        |   |   | 31,208 |   |
|                                                            |   |                   |       |   |        |   |     |        |   |   |   |   |
| Cash flows from financing activities:                           |   |                   |       |   |        |   |     |        |   |   |   |   |
| Change in due to parent and affiliates                          |   |                   | (45,848    | )      |        |   | (5,452   | )           |   |   | (51,300 | ) |
| Net cash provided by (used in) financing activities             |   |                   | 105,802    |   |        |   | (5,452   | )           |   |   | 100,350 |   |

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| Assets                     |   | June 30, 2010 |   |   | December 31, 2009 |   |
|----------------------------|--------|--------------------|--------|--------|------------------------|--------|
| Reinsurance receivable     |   | $                  | 97,371 |   |                   | $      | 87,719 |   |
| Other assets               |   |               | 83     |   |                   |   | - |   |
| Total assets               |   | $                  | 97,454 |   |                   | $      | 87,719 |   |
|                       |   |               |   |   |                   |   |   |   |
| Liabilities                |   |               |   |   |                   |   |   |   |
| Future policy benefits     |   | $                  | 23,678 |   |                   | $      | 56,219 |   |
| Policy and contract claims |   |               | 73,662 |   |                   |   | 31,500 |   |
| Total liabilities          |   | $                  | 97,340 |   |                   | $      | 87,719 |   |

|                   |   | June 30, 2010 |      |   | December 31, 2009 |   |
|------------------------|--------|--------------------|-----------|--------|------------------------|--------|
| Reinsurance receivable |   | $                  | 467,453   |   |                   | $      | 452,510 |   |
| Future policy benefits |   |               | 2,231,313 |   |                   |   | 2,293,712 |   |

|                                                                                              |   | Three months ended June 30, |    |   | Six months ended June 30, |   |
|---------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|--------------------------------|--------|
|                                                                                              |   | 2010                             |    |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| Premium income, net of related party premiums ceded of $2,489, $2,154,$3,284 and $2,960           |   | $                                | 35,331  |   |                           | $      | 40,409 |   |   | $ | 66,765 |   |   | $ | 69,854 |   |
| Life and other policy benefits, net of reinsurance recoveries of $1,363,$3,570, $2,230 and $6,672 |   |                             | 32,551  |   |                           |   | 27,718 |   |   |   | 66,142 |   |   |   | 53,749 |   |
| Increase (decrease) in future policy benefits                                                     |   |                             | (13,545 | )      |                           |   | 4,520 |   |   |   | (40,536 | ) |   |   | (11,415 | ) |

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|                                                 |   | June 30, 2010 |       |
|------------------------------------------------------|--------|--------------------|------------|
| Fixed maturities:                                    |   | Amortized cost     |       |   | Gross unrealized gains |   |   | Gross unrealized losses |   |   | Estimated fair value and carrying value |   |   | OTTI (gain) loss included in AOCI |   |
| U.S. government direct obligations and U.S. agencies |   | $                  | 2,054,048  |   |   | $ | 107,678 |   |   | $ | 1,072 |   |   | $ | 2,160,654 |   |   | $ | - |   |
| Obligations of U.S. states and their subdivisions    |   |               | 1,628,316  |   |   |   | 190,890 |   |   |   | 96 |   |   |   | 1,819,110 |   |   |   | - |   |
| Corporate debt securities                            |   |               | 7,239,421  |   |   |   | 596,866 |   |   |   | 156,439 |   |   |   | 7,679,848 |   |   |   | 7,065 |   |
| Asset-backed securities                              |   |               | 2,161,409  |   |   |   | 42,597 |   |   |   | 184,179 |   |   |   | 2,019,827 |   |   |   | (12,940 | ) |
| Residential mortgage-backed securities               |   |               | 793,978    |   |   |   | 9,927 |   |   |   | 41,078 |   |   |   | 762,827 |   |   |   | - |   |
| Commercial mortgage-backed securities                |   |               | 732,707    |   |   |   | 26,053 |   |   |   | 12,310 |   |   |   | 746,450 |   |   |   | - |   |
| Collateralized debt obligations                      |   |               | 44,753     |   |   |   | 897 |   |   |   | 46 |   |   |   | 45,604 |   |   |   | - |   |
| Total fixed maturities                               |   | $                  | 14,654,632 |   |   | $ | 974,908 |   |   | $ | 395,220 |   |   | $ | 15,234,320 |   |   | $ | (5,875 | ) |
|                                                 |   |               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity investments:                                  |   |               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity mutual funds                                  |   | $                  | 15,659     |   |   | $ | 4,595 |   |   | $ | 626 |   |   | $ | 19,628 |   |   | $ | - |   |
| Total equity investments                             |   | $                  | 15,659     |   |   | $ | 4,595 |   |   | $ | 626 |   |   | $ | 19,628 |   |   | $ | - |   |

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

|                                        |   | June 30, 2010 |       |
|---------------------------------------------|--------|--------------------|------------|
|                                        |   | Amortized cost     |       |   | Estimated fair value |   |
| Maturing in one year or less                |   | $                  | 576,949    |   |   | $ | 608,567 |   |
| Maturing after one year through five years  |   |               | 2,750,128  |   |   |   | 2,981,694 |   |
| Maturing after five years through ten years |   |               | 3,045,319  |   |   |   | 3,383,173 |   |
| Maturing after ten years                    |   |               | 2,635,674  |   |   |   | 2,679,314 |   |
| Mortgage-backed and asset-backed securities |   |               | 5,646,562  |   |   |   | 5,581,572 |   |
|                                        |   | $                  | 14,654,632 |   |   | $ | 15,234,320 |   |

|                             |   | Three months ended June 30, |    |   | Six months ended June 30, |   |
|----------------------------------|--------|----------------------------------|---------|--------|--------------------------------|--------|
|                             |   | 2010                             |    |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| Proceeds from sales              |   | $                                | 895,215 |   |                           | $      | 603,335 |   |   | $ | 1,671,664 |   |   | $ | 1,255,370 |   |
| Gross realized gains from sales  |   |                             | 6,860   |   |                           |   | 13,013 |   |   |   | 21,207 |   |   |   | 18,709 |   |
| Gross realized losses from sales |   |                             | 8       |   |                           |   | - |   |   |   | 17 |   |   |   | 723 |   |

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|                                                                                |   |                |   |   |                   |   |   |               |   |   |                   |   |   | Net derivatives    |      |   | Asset derivatives      |   |   | Liability derivatives |   |
|-------------------------------------------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|--------|--------------------|--------|--------|------------------------|--------|--------|--------------------|-----------|--------|------------------------|--------|--------|-----------------------|--------|
|                                                                                |   | Number of contracts |   |   | Notional amount        |   |   | Fair value         |   |   | Fair value (1)         |   |   | Fair value (1)     |      |
|                                                                                |   | June 30, 2010  |   |   | December 31, 2009 |   |   | June 30, 2010 |   |   | December 31, 2009 |   |   | June 30, 2010 |      |   | December 31, 2009 |   |   | June 30, 2010    |   |   | December 31, 2009 |   |   | June 30, 2010 |   |   | December 31, 2009 |   |
| Hedge designation/derivative type:                                                  |   |                |   |   |                   |   |   |               |   |   |                   |   |   |               |      |   |                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |
| Derivatives designated as hedges:                                                   |   |                |   |   |                   |   |   |               |   |   |                   |   |   |               |      |   |                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |
| Cash flow hedges:                                                                   |   |                |   |   |                   |   |   |               |   |   |                   |   |   |               |      |   |                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |
| Interest rate swaps                                                                 |   |                | 11     |   |                   |   | 13     |               |   | $      | 136,200                |   |   | $                  | 156,500   |   |                   | $      | 27,709 |                  |   | $ | 14,690 |   |   | $ | 27,709 |   |   | $ | 14,690 |   |   | $ | - |   |   | $ | - |   |
| Foreign currency exchange contracts                                                 |   |                | 1      |   |                   |   | 1      |               |   |   | 30,000                 |   |   |               | 30,000    |   |                   |   | 1,658  |                  |   |   | (3,317 | ) |   |   | 1,658 |   |   |   | - |   |   |   | - |   |   |   | 3,317 |   |
| Interest rate futures                                                               |   |                | 150    |   |                   |   | 787    |               |   |   | 15,000                 |   |   |               | 78,700    |   |                   |   | -      |                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total cash flow hedges                                                              |   |                |   |   |                   |   |   |               |   |   | 181,200                |   |   |               | 265,200   |   |                   |   | 29,367 |                  |   |   | 11,373 |   |   |   | 29,367 |   |   |   | 14,690 |   |   |   | - |   |   |   | 3,317 |   |
|                                                                                |   |                |   |   |                   |   |   |               |   |   |                   |   |   |               |      |   |                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value hedges:                                                                  |   |                |   |   |                   |   |   |               |   |   |                   |   |   |               |      |   |                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate futures                                                               |   |                | 377    |   |                   |   | 392    |               |   |   | 37,700                 |   |   |               | 39,200    |   |                   |   | -      |                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total fair value hedges                                                             |   |                |   |   |                   |   |   |               |   |   | 37,700                 |   |   |               | 39,200    |   |                   |   | -      |                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                |   |                |   |   |                   |   |   |               |   |   |                   |   |   |               |      |   |                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total derivatives designated as hedges                                              |   |                |   |   |                   |   |   |               |   |   | 218,900                |   |   |               | 304,400   |   |                   |   | 29,367 |                  |   |   | 11,373 |   |   |   | 29,367 |   |   |   | 14,690 |   |   |   | - |   |   |   | 3,317 |   |
|                                                                                |   |                |   |   |                   |   |   |               |   |   |                   |   |   |               |      |   |                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedges:                                               |   |                |   |   |                   |   |   |               |   |   |                   |   |   |               |      |   |                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GMWB derivative instruments:                                                        |   |                |   |   |                   |   |   |               |   |   |                   |   |   |               |      |   |                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Futures on interest rate swaps                                                      |   |                | 14     |   |                   |   | -      |               |   |   | 1,400                  |   |   |               | -         |   |                   |   | -      |                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Futures on equity indices                                                           |   |                | 4      |   |                   |   | -      |               |   |   | 213                    |   |   |               | -         |   |                   |   | -      |                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total GMWB derivative instruments                                                   |   |                |   |   |                   |   |   |               |   |   | 1,613                  |   |   |               | -         |   |                   |   | -      |                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                |   |                |   |   |                   |   |   |               |   |   |                   |   |   |               |      |   |                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate risk derivative instruments:                                          |   |                |   |   |                   |   |   |               |   |   |                   |   |   |               |      |   |                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swaps                                                                 |   |                | 18     |   |                   |   | -      |               |   |   | 323,500                |   |   |               | -         |   |                   |   | (4,498 | )                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,498 |   |   |   | - |   |
| Interest rate futures                                                               |   |                | 31     |   |                   |   | -      |               |   |   | 78                     |   |   |               | -         |   |                   |   | -      |                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest rate swaptions                                                             |   |                | 60     |   |                   |   | 60     |               |   |   | 1,140,000              |   |   |               | 1,140,000 |   |                   |   | 2,915  |                  |   |   | 8,460 |   |   |   | 2,915 |   |   |   | 8,460 |   |   |   | - |   |   |   | - |   |
| Total interest rate risk derivative instruments:                                    |   |                |   |   |                   |   |   |               |   |   | 1,463,578              |   |   |               | 1,140,000 |   |                   |   | (1,583 | )                     |   |   | 8,460 |   |   |   | 2,915 |   |   |   | 8,460 |   |   |   | 4,498 |   |   |   | - |   |
|                                                                                |   |                |   |   |                   |   |   |               |   |   |                   |   |   |               |      |   |                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other derivative instruments:                                                       |   |                |   |   |                   |   |   |               |   |   |                   |   |   |               |      |   |                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate futures                                                               |   |                | 790    |   |                   |   | 1,035  |               |   |   | 79,000                 |   |   |               | 103,500   |   |                   |   | -      |                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total other derivative instruments                                                  |   |                |   |   |                   |   |   |               |   |   | 79,000                 |   |   |               | 103,500   |   |                   |   | -      |                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                |   |                |   |   |                   |   |   |               |   |   |                   |   |   |               |      |   |                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total derivatives not designated as hedges                                          |   |                |   |   |                   |   |   |               |   |   | 1,544,191              |   |   |               | 1,243,500 |   |                   |   | (1,583 | )                     |   |   | 8,460 |   |   |   | 2,915 |   |   |   | 8,460 |   |   |   | 4,498 |   |   |   | - |   |
|                                                                                |   |                |   |   |                   |   |   |               |   |   |                   |   |   |               |      |   |                   |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total cash flow hedges, fair value hedges, and derivatives not designated as hedges |   |                |   |   |                   |   |   |               |   | $      | 1,763,091              |   |   | $                  | 1,547,900 |   |                   | $      | 27,784 |                  |   | $ | 19,833 |   |   | $ | 32,282 |   |   | $ | 23,150 |   |   | $ | 4,498 |   |   | $ | 3,317 |   |

| (1) | The estimated fair value of all derivatives in an asset position are reported within other assets and the estimated fair value of all derivatives in a liability position are reported within other liabilities in the condensed consolidated balance sheets. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                |   | Gain (loss) recognized in AOCI on derivatives (Effective portion) |   |   | Gain (loss) reclassified from AOCI into income (Effective portion) |   | Gain (loss) recognized in income on derivatives (Ineffective portion and amount excluded from effectiveness testing) |
|-------------------------------------|--------|-------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|
|                                |   | Three months ended June 30, 2010                             |   |   | Three months ended June 30, 2010                              |   | Income statement location                                                                                            |   | Three months ended June 30, 2010 |   | Income statement location |
| Cash flow hedges:                   |   |                                                              |   |   |                                                               |   |                                                                                                                 |   |   |   |   |
| Interest rate swaps                 |   | $                                                                 | 13,754 |   |                                                               | $      | 341                                                                                                                  |   | (A) |   | $ | (16 | ) | (A) |
| Foreign currency exchange contracts |   |                                                              | 3,177  |   |                                                               |   | -                                                                                                                    |   |   |   |   | - |   |   |
| Interest rate futures               |   |                                                              | (33    | )      |                                                               |   | 27                                                                                                                   |   | (A) |   |   | 657 |   | (B) |
| Total                               |   | $                                                                 | 16,898 |   |                                                               | $      | 368                                                                                                                  |   |   |   | $ | 641 |   |   |

| (A) | Net investment income |
|-----|-----------------------|

| (B) | Realized investment gains (losses), net.  Represents realized gains (losses) on closed positions. |
|-----|-------------------------------------------------------------------------------------------------------------|

|                                |   | Gain (loss) recognized in AOCI on derivatives (Effective portion) |    |   | Gain (loss) reclassified from AOCI into income (Effective portion) |   | Gain (loss) recognized in income on derivatives (Ineffective portion and amount excluded from effectiveness testing) |
|-------------------------------------|--------|-------------------------------------------------------------------|---------|--------|--------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|
|                                |   | Three months ended June 30, 2009                             |    |   | Three months ended June 30, 2009                              |   | Income statement location                                                                                            |   | Three months ended June 30, 2009 |   | Income statement location |
| Cash flow hedges:                   |   |                                                              |    |   |                                                               |   |                                                                                                                 |   |   |   |   |
| Interest rate swaps                 |   | $                                                                 | (17,523 | )      |                                                               | $      | 134                                                                                                                  |   | (A) |   | $ | 5 |   | (A) |
| Foreign currency exchange contracts |   |                                                              | (5,331  | )      |                                                               |   | -                                                                                                                    |   |   |   |   | - |   |   |
| Interest rate futures               |   |                                                              | -       |   |                                                               |   | 14                                                                                                                   |   | (A) |   |   | - |   |   |
| Total                               |   | $                                                                 | (22,854 | )      |                                                               | $      | 148                                                                                                                  |   |   |   | $ | 5 |   |   |

| (A) | Net investment income |
|-----|-----------------------|

|                                |   | Gain (loss) recognized in AOCI on derivatives (Effective portion) |   |   | Gain (loss) reclassified from AOCI into income (Effective portion) |   | Gain (loss) recognized in income on derivatives (Ineffective portion and amount excluded from effectiveness testing) |
|-------------------------------------|--------|-------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|
|                                |   | Six months ended June 30, 2010                               |   |   | Six months ended June 30, 2010                                |   | Income statement location                                                                                            |   | Six months ended June 30, 2010 |   | Income statement location |
| Cash flow hedges:                   |   |                                                              |   |   |                                                               |   |                                                                                                                 |   |   |   |   |
| Interest rate swaps                 |   | $                                                                 | 15,198 |   |                                                               | $      | 627                                                                                                                  |   | (A) |   | $ | (17 | ) | (A) |
| Foreign currency exchange contracts |   |                                                              | 4,975  |   |                                                               |   | -                                                                                                                    |   |   |   |   | - |   |   |
| Interest rate futures               |   |                                                              | (480   | )      |                                                               |   | 54                                                                                                                   |   | (A) |   |   | 657 |   | (B) |
| Total                               |   | $                                                                 | 19,693 |   |                                                               | $      | 681                                                                                                                  |   |   |   | $ | 640 |   |   |

| (A) | Net investment income |
|-----|-----------------------|

| (B) | Realized investment gains (losses), net.  Represents realized gains (losses) on closed positions. |
|-----|-------------------------------------------------------------------------------------------------------------|

|                                |   | Gain (loss) recognized in AOCI on derivatives (Effective portion) |    |   | Gain (loss) reclassified from AOCI into income (Effective portion) |   | Gain (loss) recognized in income on derivatives (Ineffective portion and amount excluded from effectiveness testing) |
|-------------------------------------|--------|-------------------------------------------------------------------|---------|--------|--------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|
|                                |   | Six months ended June 30, 2009                               |    |   | Six months ended June 30, 2009                                |   | Income statement location                                                                                            |   | Six months ended June 30, 2009 |   | Income statement location |
| Cash flow hedges:                   |   |                                                              |    |   |                                                               |   |                                                                                                                 |   |   |   |   |
| Interest rate swaps                 |   | $                                                                 | (49,228 | )      |                                                               | $      | 204                                                                                                                  |   | (A) |   | $ | 24 |   | (A) |
| Foreign currency exchange contracts |   |                                                              | (5,694  | )      |                                                               |   | -                                                                                                                    |   |   |   |   | - |   |   |
| Interest rate futures               |   |                                                              | -       |   |                                                               |   | 27                                                                                                                   |   | (A) |   |   | - |   |   |
| Total                               |   | $                                                                 | (54,922 | )      |                                                               | $      | 231                                                                                                                  |   |   |   | $ | 24 |   |   |

| (A) | Net investment income |
|-----|-----------------------|

----

Table of Contents

| (A)  | Net investment income |
|-----------|-----------------------|

|                                  |   | Gain (loss) recognized in net income on derivatives |   | Gain (loss) recognized in net income on hedged assets |
|---------------------------------------|--------|-----------------------------------------------------|--------|-------------------------------------------------------|
|                                  |   | Three months ended June 30, 2010                    |   | Income statement location                             |   | Three months ended June 30, 2010 |   | Income statement location |
| Fair value hedges:                    |   |                                                |   |                                                  |   |   |   |   |
| Interest rate futures                 |   | $                                                   | (1,179 | )                                                     | (A) |   | $ | - |   |   |
| Interest rate futures                 |   |                                                | (2,602 | )                                                     | (B) |   |   | - |   |   |
| Items hedged in interest rate futures |   |                                                | -      |                                                  |   |   |   | 3,848 |   | (A) |
| Total (1)                        |   | $                                                   | (3,781 | )                                                     |   |   | $ | 3,848 |   |   |

| (1) | Hedge ineffectiveness is $67. |
|-----|-------------------------------|

| (A) | Net investment income. |
|-----|------------------------|

| (B) | Realized investment gains (losses), net.  Represents realized gains (losses) on closed positions. |
|-----|-------------------------------------------------------------------------------------------------------------|

|                                  |   | Gain (loss) recognized in net income on derivatives |   | Gain (loss) recognized in net income on hedged assets |
|---------------------------------------|--------|-----------------------------------------------------|--------|-------------------------------------------------------|
|                                  |   | Three months ended June 30, 2009                    |   | Income statement location                             |   | Three months ended June 30, 2009 |   | Income statement location |
| Fair value hedges:                    |   |                                                |   |                                                  |   |   |   |   |
| Interest rate futures                 |   | $                                                   | 954    |                                                  | (A) |   | $ | - |   |   |
| Interest rate futures                 |   |                                                | 2,508  |                                                  | (B) |   |   | - |   |   |
| Items hedged in interest rate futures |   |                                                | -      |                                                  |   |   |   | (3,636 | ) | (A) |
| Total (1)                             |   | $                                                   | 3,462  |                                                  |   |   | $ | (3,636 | ) |   |

| (1) | Hedge ineffectiveness is ($174). |
|-----|----------------------------------|

| (A) | Net investment income. |
|-----|------------------------|

| (B) | Realized investment gains (losses), net.  Represents realized gains (losses) on closed positions. |
|-----|-------------------------------------------------------------------------------------------------------------|

|                                  |   | Gain (loss) recognized in net income on derivatives |   | Gain (loss) recognized in net income on hedged assets |
|---------------------------------------|--------|-----------------------------------------------------|--------|-------------------------------------------------------|
|                                  |   | Six months ended June 30, 2010                      |   | Income statement location                             |   | Six months ended June 30, 2010 |   | Income statement location |
| Fair value hedges:                    |   |                                                |   |                                                  |   |   |   |   |
| Interest rate futures                 |   | $                                                   | (2,356 | )                                                     | (A) |   | $ | - |   |   |
| Interest rate futures                 |   |                                                | (2,330 | )                                                     | (B) |   |   | - |   |   |
| Items hedged in interest rate futures |   |                                                | -      |                                                  |   |   |   | 5,069 |   | (A) |
| Total (1)                             |   | $                                                   | (4,686 | )                                                     |   |   | $ | 5,069 |   |   |

| (1) | Hedge ineffectiveness is $383. |
|-----|--------------------------------|

| (A) | Net investment income. |
|-----|------------------------|

| (B) | Realized investment gains (losses), net.  Represents realized gains (losses) on closed positions. |
|-----|-------------------------------------------------------------------------------------------------------------|

|                                  |   | Gain (loss) recognized in net income on derivatives |   | Gain (loss) recognized in net income on hedged assets |
|---------------------------------------|--------|-----------------------------------------------------|--------|-------------------------------------------------------|
|                                  |   | Six months ended June 30, 2009                      |   | Income statement location                             |   | Six months ended June 30, 2009 |   | Income statement location |
| Fair value hedges:                    |   |                                                |   |                                                  |   |   |   |   |
| Interest rate futures                 |   | $                                                   | 4,187  |                                                  | (A) |   | $ | - |   |   |
| Interest rate futures                 |   |                                                | 964    |                                                  | (B) |   |   | - |   |   |
| Items hedged in interest rate futures |   |                                                | -      |                                                  |   |   |   | (5,285 | ) | (A) |
| Total (1)                             |   | $                                                   | 5,151  |                                                  |   |   | $ | (5,285 | ) |   |

| (1) | Hedge ineffectiveness is ($134). |
|-----|----------------------------------|

| (A) | Net investment income. |
|-----|------------------------|

| (B) | Realized investment gains (losses), net.  Represents realized gains (losses) on closed positions. |
|-----|-------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                                    |   | Gain (loss) recognized in net income on derivatives |    | Gain (loss) recognized in net income on derivatives |
|---------------------------------------------------------|--------|-----------------------------------------------------|---------|-----------------------------------------------------|
|                                                    |   | Three months ended June 30, 2010               |    | Income statement location                           |   | Three months ended June 30, 2009 |   | Income statement location |
| Derivatives not designated as hedging instruments:      |   |                                                |    |                                                |   |   |   |   |
| GMWB derivative instruments:                            |   |                                                |    |                                                |   |   |   |   |
| Futures on interest rate swaps                          |   | $                                                   | 38      |                                                | (A) |   | $ | - |   |   |
| Futures on equity indices                               |   |                                                | 8       |                                                | (A) |   |   | - |   |   |
| Total GMWB derivative instruments                       |   |                                                | 46      |                                                |   |   |   | - |   |   |
|                                                    |   |                                                |    |                                                |   |   |   |   |   |   |
| Interest rate risk derivative instruments:              |   |                                                |    |                                                |   |   |   |   |   |   |
| Interest rate swaps                                     |   |                                                | (4,498  | )                                                   | (A) |   |   | - |   |   |
| Interest rate futures                                   |   |                                                | (2      | )                                                   | (A) |   |   | - |   |   |
| Interest rate swaptions                                 |   |                                                | (761    | )                                                   | (A) |   |   | - |   |   |
| Total interest rate risk derivative instruments         |   |                                                | (5,261  | )                                                   |   |   |   | - |   |   |
|                                                    |   |                                                |    |                                                |   |   |   |   |   |   |
| Other derivative instruments:                           |   |                                                |    |                                                |   |   |   |   |   |   |
| Interest rate futures                                   |   |                                                | (2,695  | )                                                   | (A) |   |   | (2,156 | ) | (A) |
| Interest rate futures                                   |   |                                                | (5,704  | )                                                   | (B) |   |   | 5,525 |   | (B) |
| Total other derivative instruments                      |   |                                                | (8,399  | )                                                   |   |   |   | 3,369 |   |   |
|                                                    |   |                                                |    |                                                |   |   |   |   |   |   |
| Total derivatives not designated as hedging instruments |   | $                                                   | (13,614 | )                                                   |   |   | $ | 3,369 |   |   |

| (A) | Net investment income |
|-----|-----------------------|

| (B) | Realized investment gains (losses), net.  Represents realized gains (losses) on closed positions. |
|-----|-------------------------------------------------------------------------------------------------------------|

|                                                    |   | Gain (loss) recognized in net income on derivatives |    | Gain (loss) recognized in net income on derivatives |
|---------------------------------------------------------|--------|-----------------------------------------------------|---------|-----------------------------------------------------|
|                                                    |   | Six months ended June 30, 2010                 |    | Income statement location                           |   | Six months ended June 30, 2009 |   | Income statement location |
| Derivatives not designated as hedging instruments:      |   |                                                |    |                                                |   |   |   |   |
| GMWB derivative instruments:                            |   |                                                |    |                                                |   |   |   |   |
| Futures on interest rate swaps                          |   | $                                                   | 38      |                                                | (A) |   | $ | - |   |   |
| Futures on equity indices                               |   |                                                | 8       |                                                | (A) |   |   | - |   |   |
| Total GMWB derivative instruments                       |   |                                                | 46      |                                                |   |   |   | - |   |   |
|                                                    |   |                                                |    |                                                |   |   |   |   |   |   |
| Interest rate risk derivative instruments:              |   |                                                |    |                                                |   |   |   |   |   |   |
| Interest rate swaps                                     |   |                                                | (4,498  | )                                                   | (A) |   |   | - |   |   |
| Interest rate futures                                   |   |                                                | (2      | )                                                   | (A) |   |   | - |   |   |
| Interest rate swaptions                                 |   |                                                | (5,545  | )                                                   | (A) |   |   | - |   |   |
| Total interest rate risk derivative instruments         |   |                                                | (10,045 | )                                                   |   |   |   | - |   |   |
|                                                    |   |                                                |    |                                                |   |   |   |   |   |   |
| Other derivative instruments:                           |   |                                                |    |                                                |   |   |   |   |   |   |
| Interest rate futures                                   |   |                                                | (6,254  | )                                                   | (A) |   |   | (2,156 | ) | (A) |
| Interest rate futures                                   |   |                                                | (4,741  | )                                                   | (B) |   |   | 5,525 |   | (B) |
| Total other derivative instruments                      |   |                                                | (10,995 | )                                                   |   |   |   | 3,369 |   |   |
|                                                    |   |                                                |    |                                                |   |   |   |   |   |   |
| Total derivatives not designated as hedging instruments |   | $                                                   | (20,994 | )                                                   |   |   | $ | 3,369 |   |   |

| (A) | Net investment income |
|-----|-----------------------|

| (B) | Realized investment gains (losses), net.  Represents realized gains (losses) on closed positions. |
|-----|-------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|   | · | the structure and purpose of the entity; |
|--------|--------|------------------------------------------|

|   | · | the risks and rewards created by and shared through the entity; and |
|--------|--------|---------------------------------------------------------------------|

|   | · | the entity’s participants’ ability to direct the activities, receive its benefits and absorb its losses. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

| Limited partnership interests and limited liability corporation interests |   | Liabilities |   | Maximum exposure to loss |
|---------------------------------------------------------------------------|--------|-------------|--------|--------------------------|
| $172,777                                                                  |   | $ -         |   | $ -                      |

----

Table of Contents

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

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

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

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

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

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

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

----

Table of Contents

|                                                      |   | June 30, 2010      |    |
|-----------------------------------------------------------|--------|-------------------------|---------|
|                                                      |   | Less than twelve months |    |   | Twelve months or longer |   |   | Total |   |
| Fixed maturities:                                         |   | Estimated fair value    |    |   | Unrealized loss and OTTI |   |   | Estimated fair value |   |   | Unrealized loss and OTTI |   |   | Estimated fair value |   |   | Unrealized loss and OTTI |   |
| U.S. government direct obligations and U.S. agencies      |   | $                       | 211,288 |   |   | $ | 510 |   |   | $ | 36,150 |   |   | $ | 562 |   |   | $ | 247,438 |   |   | $ | 1,072 |   |
| Obligations of U.S. states and their subdivisions         |   |                    | 16,414  |   |   |   | 86 |   |   |   | 11,055 |   |   |   | 10 |   |   |   | 27,469 |   |   |   | 96 |   |
| Corporate debt securities                                 |   |                    | 86,032  |   |   |   | 3,620 |   |   |   | 759,359 |   |   |   | 152,819 |   |   |   | 845,391 |   |   |   | 156,439 |   |
| Asset-backed securities                                   |   |                    | 7,162   |   |   |   | 450 |   |   |   | 1,256,434 |   |   |   | 183,729 |   |   |   | 1,263,596 |   |   |   | 184,179 |   |
| Residential mortgage-backed securities                    |   |                    | 15,286  |   |   |   | 569 |   |   |   | 466,211 |   |   |   | 40,509 |   |   |   | 481,497 |   |   |   | 41,078 |   |
| Commercial mortgage-backed securities                     |   |                    | -       |   |   |   | - |   |   |   | 100,021 |   |   |   | 12,310 |   |   |   | 100,021 |   |   |   | 12,310 |   |
| Collateralized debt obligations                           |   |                    | -       |   |   |   | - |   |   |   | 4,108 |   |   |   | 46 |   |   |   | 4,108 |   |   |   | 46 |   |
| Total fixed maturities                                    |   | $                       | 336,182 |   |   | $ | 5,235 |   |   | $ | 2,633,338 |   |   | $ | 389,985 |   |   | $ | 2,969,520 |   |   | $ | 395,220 |   |
|                                                      |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity investments:                                       |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity mutual funds                                       |   | $                       | 147     |   |   | $ | 9 |   |   | $ | 3,186 |   |   | $ | 617 |   |   | $ | 3,333 |   |   | $ | 626 |   |
| Total equity investments                                  |   | $                       | 147     |   |   | $ | 9 |   |   | $ | 3,186 |   |   | $ | 617 |   |   | $ | 3,333 |   |   | $ | 626 |   |
|                                                      |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total number of securities in an unrealized loss position |   |                    |    |   |   |   | 75 |   |   |   |   |   |   |   | 255 |   |   |   |   |   |   |   | 330 |   |

|                                                      |   | December 31, 2009  |      |
|-----------------------------------------------------------|--------|-------------------------|-----------|
|                                                      |   | Less than twelve months |      |   | Twelve months or longer |   |   | Total |   |
| Fixed maturities:                                         |   | Estimated fair value    |      |   | Unrealized loss and OTTI |   |   | Estimated fair value |   |   | Unrealized loss and OTTI |   |   | Estimated fair value |   |   | Unrealized loss 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 |   |

----

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| Sector            |   | June 30, 2010 |   |   | December 31, 2009 |   |
|-------------------|--------|--------------------|--------|--------|------------------------|--------|
| Finance           |   |               | 87     | %      |                   |   | 77 | % |
| Utility           |   |               | 4      | %      |                   |   | 10 | % |
| Natural resources |   |               | 5      | %      |                   |   | 4 | % |
| Consumer          |   |               | 2      | %      |                   |   | 4 | % |
| Transportation    |   |               | 1      | %      |                   |   | 2 | % |
| Other             |   |               | 1      | %      |                   |   | 3 | % |
|              |   |               | 100    | %      |                   |   | 100 | % |

----

Table of Contents

| Bifurcated credit loss balance, January 1, 2010                               |   | $      | 115,325 |   |
|------------------------------------------------------------------------------------|--------|--------|---------|--------|
| Additions:                                                                         |   |   |    |   |
| Initial impairments - credit loss recognized on securities not previously impaired |   |   | 54,203  |   |
| Bifurcated credit loss balance, June 30, 2010                                 |   | $      | 169,528 |   |

|                                                            |   | June 30, 2010 |       |   | December 31, 2009 |   |
|-----------------------------------------------------------------|--------|--------------------|------------|--------|------------------------|--------|
| Assets                                                          |   | Carrying amount    |       |   | Estimated fair value   |   |   | Carrying amount |   |   | Estimated fair value |   |
| Fixed maturities and short-term investments                     |   | $                  | 16,069,330 |   |                   | $      | 16,069,330 |   |   | $ | 14,546,467 |   |   | $ | 14,546,467 |   |
| Mortgage loans on real estate                                   |   |               | 1,599,233  |   |                   |   | 1,717,440 |   |   |   | 1,554,132 |   |   |   | 1,570,217 |   |
| Equity investments                                              |   |               | 19,628     |   |                   |   | 19,628 |   |   |   | 25,679 |   |   |   | 25,679 |   |
| Policy loans                                                    |   |               | 4,002,906  |   |                   |   | 4,002,906 |   |   |   | 3,971,833 |   |   |   | 3,971,833 |   |
| Other investments                                               |   |               | 25,395     |   |                   |   | 49,027 |   |   |   | 24,312 |   |   |   | 50,159 |   |
| Derivative instruments                                          |   |               | 32,282     |   |                   |   | 32,282 |   |   |   | 23,150 |   |   |   | 23,150 |   |
| Collateral under securities lending agreements                  |   |               | 61,095     |   |                   |   | 61,095 |   |   |   | 38,296 |   |   |   | 38,296 |   |
| Collateral under derivative counter-party collateral agreements |   |               | 2,980      |   |                   |   | 2,980 |   |   |   | 4,300 |   |   |   | 4,300 |   |
| Separate account assets                                         |   |               | 19,975,473 |   |                   |   | 19,975,473 |   |   |   | 18,886,901 |   |   |   | 18,886,901 |   |

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|                                                 |   | June 30, 2010 |      |   | December 31, 2009 |   |
|------------------------------------------------------|--------|--------------------|-----------|--------|------------------------|--------|
| Liabilities                                          |   | Carrying amount    |      |   | Estimated fair value   |   |   | Carrying amount |   |   | Estimated fair value |   |
| Annuity contract benefits without life contingencies |   | $                  | 7,481,258 |   |                   | $      | 7,809,893 |   |   | $ | 7,167,733 |   |   | $ | 7,105,090 |   |
| Policyholders' funds                                 |   |               | 371,813   |   |                   |   | 371,813 |   |   |   | 286,175 |   |   |   | 286,175 |   |
| Repurchase agreements                                |   |               | 693,230   |   |                   |   | 693,230 |   |   |   | 491,338 |   |   |   | 491,338 |   |
| Commercial paper                                     |   |               | 99,003    |   |                   |   | 99,003 |   |   |   | 97,613 |   |   |   | 97,613 |   |
| Payable under securities lending                     |   |               |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| agreements                                           |   |               | 61,095    |   |                   |   | 61,095 |   |   |   | 38,296 |   |   |   | 38,296 |   |
| Payable under derivative counterparty                |   |               |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| collateral agreements                                |   |               | 2,980     |   |                   |   | 2,980 |   |   |   | 4,300 |   |   |   | 4,300 |   |
| Derivative instruments                               |   |               | 4,498     |   |                   |   | 4,498 |   |   |   | 3,317 |   |   |   | 3,317 |   |
| Notes payable                                        |   |               | 532,325   |   |                   |   | 532,325 |   |   |   | 532,319 |   |   |   | 532,319 |   |

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|                                                 |   | Assets and liabilities measured at fair value on a recurring basis |      |
|------------------------------------------------------|--------|--------------------------------------------------------------------|-----------|
|                                                 |   | June 30, 2010                                                 |      |
|                                                 |   | Quoted prices in active markets for identical assets               |      |   | Significant other observable inputs |   |   | Significant unobservable inputs |   |   |   |   |
| Assets                                               |   | (Level 1)                                                          |      |   | (Level 2) |   |   | (Level 3) |   |   | Total |   |
| Fixed maturities, available-for-sale:                |   |                                                               |      |   |   |   |   |   |   |   |   |   |
| U.S. government direct obligations and U.S. agencies |   | $                                                                  | -         |   |   | $ | 2,160,653 |   |   | $ | - |   |   | $ | 2,160,653 |   |
| Obligations of U.S. states and their subdivisions    |   |                                                               | -         |   |   |   | 1,819,109 |   |   |   | - |   |   |   | 1,819,109 |   |
| Corporate debt securities                            |   |                                                               | -         |   |   |   | 7,620,199 |   |   |   | 59,649 |   |   |   | 7,679,848 |   |
| Asset-backed securities                              |   |                                                               | -         |   |   |   | 1,700,670 |   |   |   | 319,157 |   |   |   | 2,019,827 |   |
| Residential mortgage-backed securities               |   |                                                               | -         |   |   |   | 762,827 |   |   |   | - |   |   |   | 762,827 |   |
| Commercial mortgage-backed securities                |   |                                                               | -         |   |   |   | 746,451 |   |   |   | - |   |   |   | 746,451 |   |
| Collateralized debt obligations                      |   |                                                               | -         |   |   |   | 44,906 |   |   |   | 699 |   |   |   | 45,605 |   |
| Total fixed maturities available-for-sale            |   |                                                               | -         |   |   |   | 14,854,815 |   |   |   | 379,505 |   |   |   | 15,234,320 |   |
| Fixed maturities, held for trading:                  |   |                                                               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. government direct obligations and U.S. agencies |   |                                                               | -         |   |   |   | 25,702 |   |   |   | - |   |   |   | 25,702 |   |
| Corporate debt securities                            |   |                                                               | -         |   |   |   | 49,959 |   |   |   | - |   |   |   | 49,959 |   |
| Asset-backed securities                              |   |                                                               | -         |   |   |   | 44,152 |   |   |   | - |   |   |   | 44,152 |   |
| Commercial mortgage-backed securities                |   |                                                               | -         |   |   |   | 8,357 |   |   |   | - |   |   |   | 8,357 |   |
| Total fixed maturities held for trading              |   |                                                               | -         |   |   |   | 128,170 |   |   |   | - |   |   |   | 128,170 |   |
| Equity investments available-for-sale:               |   |                                                               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity mutual funds                                  |   |                                                               | 19,032    |   |   |   | 596 |   |   |   | - |   |   |   | 19,628 |   |
| Total equity investments                             |   |                                                               | 19,032    |   |   |   | 596 |   |   |   | - |   |   |   | 19,628 |   |
| Short-term investments available-for-sale            |   |                                                               | 80,743    |   |   |   | 626,097 |   |   |   | - |   |   |   | 706,840 |   |
| Collateral under securities lending agreements       |   |                                                               | 43,949    |   |   |   | 17,146 |   |   |   | - |   |   |   | 61,095 |   |
| Other assets 1                                       |   |                                                               | -         |   |   |   | 30,624 |   |   |   | 1,658 |   |   |   | 32,282 |   |
| Separate account assets 2                            |   |                                                               | 9,371,887 |   |   |   | 10,188,254 |   |   |   | 4,359 |   |   |   | 19,564,500 |   |
| Total assets                                         |   | $                                                                  | 9,515,611 |   |   | $ | 25,845,702 |   |   | $ | 385,522 |   |   | $ | 35,746,835 |   |
|                                                 |   |                                                               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                          |   |                                                               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other liabilities 1                                  |   | $                                                                  | -         |   |   | $ | 4,498 |   |   | $ | - |   |   | $ | 4,498 |   |
| Separate account liabilities 2                       |   |                                                               | 437       |   |   |   | 278,735 |   |   |   | - |   |   |   | 279,172 |   |
| Total liabilities                                    |   | $                                                                  | 437       |   |   | $ | 283,233 |   |   | $ | - |   |   | $ | 283,670 |   |

| 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. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                          |   | Recurring Level 3 financial assets and liabilities             |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|---------|
|                                                                                                                                                          |   | Three months ended June 30, 2010                          |    |
|                                                                                                                                                          |   | Fixed maturities available-for-sale: corporate debt securities |    |   | Fixed maturities available-for-sale: asset-backed securities |   |   | Fixed maturities available-for-sale: commercial mortgage-backed securities |   |   | Fixed maturities available-for-sale: collateralized debt obligations |   |   | Other assets and liabilities 1 |   |   | Separate accounts |   |
| Balance, April 1, 2010                                                                                                                                   |   | $                                                              | 120,622 |   |   | $ | 325,173 |   |   | $ | - |   |   | $ | 1,747 |   |   | $ | (1,520 | ) |   | $ | 5,358 |   |
| Realized and unrealized gains and losses:                                                                                                                     |   |                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gains (losses) included in net income                                                                                                                         |   |                                                           | 25      |   |   |   | (13,845 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Gains (losses) included in other comprehensive income (loss)                                                                                                  |   |                                                           | (1,082  | ) |   |   | 34,323 |   |   |   | - |   |   |   | 88 |   |   |   | 3,178 |   |   |   | 102 |   |
| Purchases, issuances and settlements                                                                                                                          |   |                                                           | (16,568 | ) |   |   | (13,834 | ) |   |   | - |   |   |   | (1,136 | ) |   |   | - |   |   |   | (38 | ) |
| Transfers in (out) of Level 3 2                                                                                                                               |   |                                                           | (43,348 | ) |   |   | (12,660 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,063 | ) |
| Balance, June 30, 2010                                                                                                                                   |   | $                                                              | 59,649  |   |   | $ | 319,157 |   |   | $ | - |   |   | $ | 699 |   |   | $ | 1,658 |   |   | $ | 4,359 |   |
| Total gains (losses) for the period included in net income attributable to the change in unrealized gains and losses relating to assets held at June 30, 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 corroboration of market prices with multiple pricing vendors. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                          |   | Six months ended June 30, 2010                            |     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|----------|
|                                                                                                                                                          |   | Fixed maturities available-for-sale: corporate debt securities |     |   | Fixed maturities available-for-sale: asset- backed securities |   |   | Fixed maturities available-for-sale: commercial mortgage-backed securities |   |   | Fixed maturities available-for-sale:collateralized debt obligations |   |   | Other assets and liabilities 1 |   |   | Separate accounts |   |
| 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                                                                                                                         |   |                                                           | 475      |   |   |   | (41,225 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Gains (losses) included in other comprehensive income (loss)                                                                                                  |   |                                                           | 4,553    |   |   |   | 67,531 |   |   |   | - |   |   |   | 142 |   |   |   | 4,975 |   |   |   | 405 |   |
| Purchases, issuances and settlements                                                                                                                          |   |                                                           | (28,654  | ) |   |   | (79,956 | ) |   |   | - |   |   |   | (1,172 | ) |   |   | - |   |   |   | (1,768 | ) |
| Transfers in (out) of Level 3 2                                                                                                                               |   |                                                           | (105,661 | ) |   |   | (19,558 | ) |   |   | (58,270 | ) |   |   | - |   |   |   | - |   |   |   | (4,238 | ) |
| Balance, June 30, 2010                                                                                                                                   |   | $                                                              | 59,649   |   |   | $ | 319,157 |   |   | $ | - |   |   | $ | 699 |   |   | $ | 1,658 |   |   | $ | 4,359 |   |
| Total gains (losses) for the period included in net income attributable to the change in unrealized gains and losses relating to assets held at June 30, 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 corroboration of market prices with multiple pricing vendors. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                           |   | Three months ended June 30, 2010      |    |
|--------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                           |   | Net realized gains (losses) on investments |    |   | Net investment income |   |
| Realized and unrealized gains and losses included in net income for the period |   | $                                          | (13,820 | ) |   | $ | - |   |

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|                                                                           |   | Six months ended June 30, 2010        |    |
|--------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                           |   | Net realized gains (losses) on investments |    |   | Net investment income |   |
| Realized and unrealized gains and losses included in net income for the period |   | $                                          | (40,750 | ) |   | $ | - |   |

|                          |   | June 30, 2010         |   |
|-------------------------------|--------|-----------------------|--------|
|                          |   | Gross carrying amount |   |   | Accumulated amortization |   |   | Net book value |   |
| Customer relationships        |   | $                     | 36,314 |   |   | $ | (11,370 | ) |   | $ | 24,944 |   |
| Preferred provider agreements |   |                  | 7,970  |   |   |   | (5,277 | ) |   |   | 2,693 |   |
| Total                         |   | $                     | 44,284 |   |   | $ | (16,647 | ) |   | $ | 27,637 |   |

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

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

|   | 8.  Other Comprehensive Income |
|--------|------------------------------------------|

|                                                                                                         |   | Three months ended June 30, 2010 |     |
|--------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|----------|
|                                                                                                         |   | Before-tax amount                     |     |   | Tax (expense)benefit |   |   | Net-of-tax amount |   |
| Unrealized holding gains (losses) arising during the period on available-for-sale fixed maturity investments |   | $                                     | 431,193  |   |   | $ | (150,917 | ) |   | $ | 280,276 |   |
| Net changes during the period related to cash flow hedges                                                    |   |                                  | 16,898   |   |   |   | (5,915 | ) |   |   | 10,983 |   |
| Reclassification adjustment for (gains) losses realized in net income                                        |   |                                  | 9,285    |   |   |   | (3,250 | ) |   |   | 6,035 |   |
| Net unrealized gains (losses)                                                                                |   |                                  | 457,376  |   |   |   | (160,082 | ) |   |   | 297,294 |   |
| Future policy benefits, deferred acquisition costs and value of business acquired adjustments                |   |                                  | (131,322 | ) |   |   | 45,963 |   |   |   | (85,359 | ) |
| Net unrealized gains (losses)                                                                                |   |                                  | 326,054  |   |   |   | (114,119 | ) |   |   | 211,935 |   |
| Employee benefit plan adjustment                                                                             |   |                                  | -        |   |   |   | - |   |   |   | - |   |
| Other comprehensive income (loss)                                                                            |   | $                                     | 326,054  |   |   | $ | (114,119 | ) |   | $ | 211,935 |   |

|                                                                                                         |   | Three months ended June 30, 2009 |     |
|--------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|----------|
|                                                                                                         |   | Before-tax amount                     |     |   | Tax (expense)benefit |   |   | Net-of-tax amount |   |
| Unrealized holding gains (losses) arising during the period on available-for-sale fixed maturity investments |   | $                                     | 667,165  |   |   | $ | (235,239 | ) |   | $ | 431,926 |   |
| Net changes during the period related to cash flow hedges                                                    |   |                                  | (22,855  | ) |   |   | 8,000 |   |   |   | (14,855 | ) |
| Reclassification adjustment for (gains) losses realized in net income                                        |   |                                  | (11,022  | ) |   |   | 3,858 |   |   |   | (7,164 | ) |
| Net unrealized gains (losses)                                                                                |   |                                  | 633,288  |   |   |   | (223,381 | ) |   |   | 409,907 |   |
| Future policy benefits, deferred acquisition costs and value of business acquired adjustments                |   |                                  | (129,053 | ) |   |   | 45,167 |   |   |   | (83,886 | ) |
| Net unrealized gains (losses)                                                                                |   |                                  | 504,235  |   |   |   | (178,214 | ) |   |   | 326,021 |   |
| Employee benefit plan adjustment                                                                             |   |                                  | (1,897   | ) |   |   | 664 |   |   |   | (1,233 | ) |
| Other comprehensive income (loss)                                                                            |   | $                                     | 502,338  |   |   | $ | (177,550 | ) |   | $ | 324,788 |   |

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|                                                                                                         |   | Six months ended June 30, 2010 |     |
|--------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|----------|
|                                                                                                         |   | Before-tax amount                   |     |   | Tax (expense)benefit |   |   | Net-of-tax amount |   |
| Unrealized holding gains (losses) arising during the period on available-for-sale fixed maturity investments |   | $                                   | 735,234  |   |   | $ | (257,332 | ) |   | $ | 477,902 |   |
| Net changes during the period related to cash flow hedges                                                    |   |                                | 19,693   |   |   |   | (6,893 | ) |   |   | 12,800 |   |
| Reclassification adjustment for (gains) losses realized in net income                                        |   |                                | 33,296   |   |   |   | (11,654 | ) |   |   | 21,642 |   |
| Net unrealized gains (losses)                                                                                |   |                                | 788,223  |   |   |   | (275,879 | ) |   |   | 512,344 |   |
| Future policy benefits, deferred acquisition costs and value of business acquired adjustments                |   |                                | (190,670 | ) |   |   | 66,735 |   |   |   | (123,935 | ) |
| Net unrealized gains (losses)                                                                                |   |                                | 597,553  |   |   |   | (209,144 | ) |   |   | 388,409 |   |
| Employee benefit plan adjustment                                                                             |   |                                | (317     | ) |   |   | 111 |   |   |   | (206 | ) |
| Other comprehensive income (loss)                                                                            |   | $                                   | 597,236  |   |   | $ | (209,033 | ) |   | $ | 388,203 |   |

|                                                                                                         |   | Six months ended June 30, 2009 |     |
|--------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|----------|
|                                                                                                         |   | Before-tax amount                   |     |   | Tax (expense)benefit |   |   | Net-of-tax amount |   |
| Unrealized holding gains (losses) arising during the period on available-for-sale fixed maturity investments |   | $                                   | 524,504  |   |   | $ | (183,576 | ) |   | $ | 340,928 |   |
| Net changes during the period related to cash flow hedges                                                    |   |                                | (54,922  | ) |   |   | 19,223 |   |   |   | (35,699 | ) |
| Reclassification adjustment for (gains) losses realized in net income                                        |   |                                | (10,829  | ) |   |   | 3,790 |   |   |   | (7,039 | ) |
| Net unrealized gains (losses)                                                                                |   |                                | 458,753  |   |   |   | (160,563 | ) |   |   | 298,190 |   |
| Future policy benefits, deferred acquisition costs and value of business acquired adjustments                |   |                                | (111,091 | ) |   |   | 38,882 |   |   |   | (72,209 | ) |
| Net unrealized gains (losses)                                                                                |   |                                | 347,662  |   |   |   | (121,681 | ) |   |   | 225,981 |   |
| Employee benefit plan adjustment                                                                             |   |                                | (3,792   | ) |   |   | 1,327 |   |   |   | (2,465 | ) |
| Other comprehensive income (loss)                                                                            |   | $                                   | 343,870  |   |   | $ | (120,354 | ) |   | $ | 223,516 |   |

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|                                             |   | Three months ended June 30, |   |
|--------------------------------------------------|--------|----------------------------------|--------|
|                                             |   | 2010                             |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                             |   | Defined benefit pension plan     |   |   | Post-retirement medical plan |   |
| Components of periodic (benefit) cost:           |   |                             |   |   |   |   |   |   |   |   |   |   |
| Service cost                                     |   | $                                | 935    |   |   | $ | 961 |   |   | $ | 182 |   |   | $ | 153 |   |
| Interest cost                                    |   |                             | 4,895  |   |   |   | 4,853 |   |   |   | 178 |   |   |   | 256 |   |
| Expected return on plan assets                   |   |                             | (4,655 | ) |   |   | (3,917 | ) |   |   | - |   |   |   | - |   |
| Amortization of transition obligation            |   |                             | (379   | ) |   |   | (378 | ) |   |   | - |   |   |   | - |   |
| Amortization of unrecognized prior service cost  |   |                             | 21     |   |   |   | 22 |   |   |   | (413 | ) |   |   | (412 | ) |
| Amortization of loss (gain) from earlier periods |   |                             | 1,273  |   |   |   | 2,664 |   |   |   | (115 | ) |   |   | - |   |
| Net periodic (benefit) cost                      |   | $                                | 2,090  |   |   | $ | 4,205 |   |   | $ | (168 | ) |   | $ | (3 | ) |

|                                             |   | Six months ended June 30,    |   |
|--------------------------------------------------|--------|------------------------------|--------|
|                                             |   | 2010                         |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                             |   | Defined benefit pension plan |   |   | Post-retirement medical plan |   |
| Components of periodic (benefit) cost:           |   |                         |   |   |   |   |   |   |   |   |   |   |
| Service cost                                     |   | $                            | 1,943  |   |   | $ | 1,922 |   |   | $ | 358 |   |   | $ | 306 |   |
| Interest cost                                    |   |                         | 9,978  |   |   |   | 9,706 |   |   |   | 369 |   |   |   | 512 |   |
| Expected return on plan assets                   |   |                         | (9,601 | ) |   |   | (7,834 | ) |   |   | - |   |   |   | - |   |
| Amortization of transition obligation            |   |                         | (757   | ) |   |   | (756 | ) |   |   | - |   |   |   | - |   |
| Amortization of unrecognized prior service cost  |   |                         | 42     |   |   |   | 44 |   |   |   | (825 | ) |   |   | (824 | ) |
| Amortization of loss (gain) from earlier periods |   |                         | 2,844  |   |   |   | 5,328 |   |   |   | (217 | ) |   |   | - |   |
| Net periodic (benefit) cost                      |   | $                            | 4,449  |   |   | $ | 8,410 |   |   | $ | (315 | ) |   | $ | (6 | ) |

|                       |   | Three months ended June 30, |   |   | Six months ended June 30, |   |
|----------------------------|--------|----------------------------------|--------|--------|--------------------------------|--------|
|                       |   | 2010                             |   |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| Current                    |   | $                                | 14,142 |   |                           | $      | (2,613 | ) |   | $ | 17,293 |   |   | $ | 1,005 |   |
| Deferred                   |   |                             | 14,178 |   |                           |   | 19,955 |   |   |   | 28,960 |   |   |   | 31,784 |   |
| Total income tax provision |   | $                                | 28,320 |   |                           | $      | 17,342 |   |   | $ | 46,253 |   |   | $ | 32,789 |   |

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|                                         |   | Six months ended June 30, |   |
|----------------------------------------------|--------|--------------------------------|--------|
|                                         |   | 2010                           |   |   | 2009 |   |
| Statutory federal income tax rate            |   |                           | 35.0   | % |   |   | 35.0 | % |
| Income tax effect of:                        |   |                           |   |   |   |   |   |   |
| Investment income not subject to federal tax |   |                           | (2.2   | %) |   |   | (2.2 | %) |
| Tax credits                                  |   |                           | (3.1   | %) |   |   | (2.1 | %) |
| State income taxes, net of federal benefit   |   |                           | 1.0    | % |   |   | 0.9 | % |
| Income tax contingency provisions            |   |                           | 1.2    | % |   |   | (2.1 | %) |
| Prior period adjustments                     |   |                           | 3.3    | % |   |   | - |   |
| Other, net                                   |   |                           | 0.3    | % |   |   | (1.0 | %) |
| Effective federal income tax rate            |   |                           | 35.5   | % |   |   | 28.5 | % |

| Balance, January 1, 2010                                                                                                                                                                      |   | $      | 125,878  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|
| Decrease in deferred income tax asset (liability) included in other comprehensive income related to the change in unrealized (gains)losses on invested assets, net of policyholder related amounts |   |   | (210,035 | )      |
| Increase in deferred income tax asset (liability) related to income tax contingency provisions                                                                                                     |   |   | 2,833    |   |
| Decrease in deferred income tax asset (liability) related to the condensed consolidated statement of income                                                                                        |   |   | (28,960  | )      |
| Balance, June 30, 2010                                                                                                                                                                        |   | $      | (110,284 | )      |

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|                                      |   | Three months ended June 30, |    |   | Six months ended June 30, |   |
|-------------------------------------------|--------|----------------------------------|---------|--------|--------------------------------|--------|
|                                      |   | 2010                             |    |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| Revenues:                                 |   |                             |    |   |                           |   |   |   |   |   |   |   |
| Premium income                            |   | $                                | 128,455 |   |                           | $      | 79,532 |   |   | $ | 309,015 |   |   | $ | 193,625 |   |
| Fee income                                |   |                             | 13,792  |   |                           |   | 11,665 |   |   |   | 27,619 |   |   |   | 22,325 |   |
| Net investment income                     |   |                             | 181,185 |   |                           |   | 174,172 |   |   |   | 354,920 |   |   |   | 347,185 |   |
| Net realized gains (losses)on investments |   |                             | (7,157  | )      |                           |   | 8,684 |   |   |   | (14,023 | ) |   |   | 13,062 |   |
| Total revenues                            |   |                             | 316,275 |   |                           |   | 274,053 |   |   |   | 677,531 |   |   |   | 576,197 |   |
| Benefits and expenses:                    |   |                             |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Policyholder benefits                     |   |                             | 248,490 |   |                           |   | 216,793 |   |   |   | 562,803 |   |   |   | 458,589 |   |
| Operating expenses                        |   |                             | 26,442  |   |                           |   | 27,494 |   |   |   | 51,222 |   |   |   | 50,087 |   |
| Total benefits and expenses               |   |                             | 274,932 |   |                           |   | 244,287 |   |   |   | 614,025 |   |   |   | 508,676 |   |
| Income before income taxes                |   |                             | 41,343  |   |                           |   | 29,766 |   |   |   | 63,506 |   |   |   | 67,521 |   |
| Income tax expense                        |   |                             | 14,928  |   |                           |   | 10,775 |   |   |   | 22,555 |   |   |   | 21,078 |   |
| Net income                                |   | $                                | 26,415  |   |                           | $      | 18,991 |   |   | $ | 40,951 |   |   | $ | 46,443 |   |

|                                       |   | Three months ended June 30, |    |   | Six months ended June 30, |   |
|--------------------------------------------|--------|----------------------------------|---------|--------|--------------------------------|--------|
|                                       |   | 2010                             |    |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| Revenues:                                  |   |                             |    |   |                           |   |   |   |   |   |   |   |
| Premium income                             |   | $                                | 453     |   |                           | $      | 807 |   |   | $ | 1,559 |   |   | $ | 1,624 |   |
| Fee income                                 |   |                             | 96,015  |   |                           |   | 77,440 |   |   |   | 190,662 |   |   |   | 149,451 |   |
| Net investment income                      |   |                             | 96,627  |   |                           |   | 87,795 |   |   |   | 190,903 |   |   |   | 185,078 |   |
| Net realized gains (losses) on investments |   |                             | (12,907 | )      |                           |   | 10,394 |   |   |   | (26,637 | ) |   |   | 8,161 |   |
| Total revenues                             |   |                             | 180,188 |   |                           |   | 176,436 |   |   |   | 356,487 |   |   |   | 344,314 |   |
| Benefits and expenses:                     |   |                             |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Policyholder benefits                      |   |                             | 53,450  |   |                           |   | 58,811 |   |   |   | 105,830 |   |   |   | 116,556 |   |
| Operating expenses                         |   |                             | 101,343 |   |                           |   | 89,158 |   |   |   | 195,484 |   |   |   | 174,174 |   |
| Total benefits and expenses                |   |                             | 154,793 |   |                           |   | 147,969 |   |   |   | 301,314 |   |   |   | 290,730 |   |
| Income before income taxes                 |   |                             | 25,395  |   |                           |   | 28,467 |   |   |   | 55,173 |   |   |   | 53,584 |   |
| Income tax expense                         |   |                             | 9,553   |   |                           |   | 7,482 |   |   |   | 18,910 |   |   |   | 13,878 |   |
| Net income                                 |   | $                                | 15,842  |   |                           | $      | 20,985 |   |   | $ | 36,263 |   |   | $ | 39,706 |   |

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|                                      |   | Three months ended June 30, |   |   | Six months ended June 30, |   |
|-------------------------------------------|--------|----------------------------------|--------|--------|--------------------------------|--------|
|                                      |   | 2010                             |   |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| Revenues:                                 |   |                             |   |   |                           |   |   |   |   |   |   |   |
| Premium income                            |   | $                                | 35,456 |   |                           | $      | 39,909 |   |   | $ | 64,784 |   |   | $ | 67,100 |   |
| Fee income                                |   |                             | 1,121  |   |                           |   | 1,265 |   |   |   | 2,286 |   |   |   | 2,488 |   |
| Net investment income                     |   |                             | 10,932 |   |                           |   | 11,063 |   |   |   | 22,277 |   |   |   | 22,119 |   |
| Net realized gains (losses)on investments |   |                             | -      |   |                           |   | 2 |   |   |   | 342 |   |   |   | 150 |   |
| Total revenues                            |   |                             | 47,509 |   |                           |   | 52,239 |   |   |   | 89,689 |   |   |   | 91,857 |   |
| Benefits and expenses:                    |   |                             |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Policyholder benefits                     |   |                             | 23,015 |   |                           |   | 35,409 |   |   |   | 46,365 |   |   |   | 61,228 |   |
| Operating expenses                        |   |                             | 15,412 |   |                           |   | 19,628 |   |   |   | 31,603 |   |   |   | 36,853 |   |
| Total benefits and expenses               |   |                             | 38,427 |   |                           |   | 55,037 |   |   |   | 77,968 |   |   |   | 98,081 |   |
| Income (loss) before income taxes         |   |                             | 9,082  |   |                           |   | (2,798 | ) |   |   | 11,721 |   |   |   | (6,224 | ) |
| Income tax expense (benefit)              |   |                             | 3,839  |   |                           |   | (915 | ) |   |   | 4,788 |   |   |   | (2,167 | ) |
| Net income (loss)                         |   | $                                | 5,243  |   |                           | $      | (1,883 | ) |   | $ | 6,933 |   |   | $ | (4,057 | ) |

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

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|              |   | June 30, |   |
|-------------------|--------|---------------|--------|
| S&P 500 Index |   | 2010          |   |   | 2009 |   |
| Index close       |   |          | 1,031  |   |   |   | 919 |   |
| Index average     |   |          | 1,129  |   |   |   | 851 |   |

|                                   |   | Three months ended June 30, |   |
|----------------------------------------|--------|----------------------------------|--------|
| Income statement data (In millions)    |   | 2010                             |   |   | 2009 |   |
| Premium income                         |   | $                                | 164    |   |   | $ | 121 |   |
| Fee income                             |   |                             | 111    |   |   |   | 90 |   |
| Net investment income                  |   |                             | 289    |   |   |   | 273 |   |
| Net realized investment gains (losses) |   |                             | (21    | ) |   |   | 19 |   |
| Total revenues                         |   |                             | 543    |   |   |   | 503 |   |
| Policyholder benefits                  |   |                             | 325    |   |   |   | 311 |   |
| Operating expenses                     |   |                             | 143    |   |   |   | 136 |   |
| Total benefits and expenses            |   |                             | 468    |   |   |   | 447 |   |
| Income before income taxes             |   |                             | 75     |   |   |   | 56 |   |
| Income tax expense                     |   |                             | 28     |   |   |   | 18 |   |
| Net income                             |   | $                                | 47     |   |   | $ | 38 |   |

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|                                   |   | Six months ended June 30, |   |
|----------------------------------------|--------|--------------------------------|--------|
| Income statement data (In millions)    |   | 2010                           |   |   | 2009 |   |
| Premium income                         |   | $                              | 375    |   |   | $ | 263 |   |
| Fee income                             |   |                           | 221    |   |   |   | 174 |   |
| Net investment income                  |   |                           | 568    |   |   |   | 554 |   |
| Net realized investment gains (losses) |   |                           | (41    | ) |   |   | 21 |   |
| Total revenues                         |   |                           | 1,123  |   |   |   | 1,012 |   |
| Policyholder benefits                  |   |                           | 715    |   |   |   | 636 |   |
| Operating expenses                     |   |                           | 278    |   |   |   | 261 |   |
| Total benefits and expenses            |   |                           | 993    |   |   |   | 897 |   |
| Income before income taxes             |   |                           | 130    |   |   |   | 115 |   |
| Income tax expense                     |   |                           | 46     |   |   |   | 33 |   |
| Net income                             |   | $                              | 84     |   |   | $ | 82 |   |

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|                                   |   | Three months ended June 30, |   |
|----------------------------------------|--------|----------------------------------|--------|
| Income statement data (In millions)    |   | 2010                             |   |   | 2009 |   |
| Premium income                         |   | $                                | 129    |   |   | $ | 80 |   |
| Fee income                             |   |                             | 14     |   |   |   | 11 |   |
| Net investment income                  |   |                             | 181    |   |   |   | 174 |   |
| Net realized investment gains (losses) |   |                             | (7     | ) |   |   | 9 |   |
| Total revenues                         |   |                             | 317    |   |   |   | 274 |   |
| Policyholder benefits                  |   |                             | 249    |   |   |   | 216 |   |
| Operating expenses                     |   |                             | 26     |   |   |   | 27 |   |
| Total benefits and expenses            |   |                             | 275    |   |   |   | 243 |   |
| Income before income taxes             |   |                             | 42     |   |   |   | 31 |   |
| Income tax expense                     |   |                             | 15     |   |   |   | 11 |   |
| Net income                             |   | $                                | 27     |   |   | $ | 20 |   |

| (In thousands)       |   | June 30, 2010 |   |   | March 31, 2010 |   |
|----------------------|--------|--------------------|--------|--------|---------------------|--------|
| Participant accounts |   |               | 516    |   |                |   | 519 |   |

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|                                   |   | Six months ended June 30, |   |
|----------------------------------------|--------|--------------------------------|--------|
| Income statement data (In millions)    |   | 2010                           |   |   | 2009 |   |
| Premium income                         |   | $                              | 309    |   |   | $ | 194 |   |
| Fee income                             |   |                           | 28     |   |   |   | 22 |   |
| Net investment income                  |   |                           | 355    |   |   |   | 347 |   |
| Net realized investment gains (losses) |   |                           | (14    | ) |   |   | 13 |   |
| Total revenues                         |   |                           | 678    |   |   |   | 576 |   |
| Policyholder benefits                  |   |                           | 563    |   |   |   | 458 |   |
| Operating expenses                     |   |                           | 51     |   |   |   | 50 |   |
| Total benefits and expenses            |   |                           | 614    |   |   |   | 508 |   |
| Income before income taxes             |   |                           | 64     |   |   |   | 68 |   |
| Income tax expense                     |   |                           | 23     |   |   |   | 21 |   |
| Net income                             |   | $                              | 41     |   |   | $ | 47 |   |

|                 |   | June 30, |   |
|----------------------|--------|---------------|--------|
| (In thousands)       |   | 2010          |   |   | 2009 |   |
| Participant accounts |   |          | 516    |   |   |   | 525 |   |

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|                                   |   | Three months ended June 30, |   |
|----------------------------------------|--------|----------------------------------|--------|
| Income statement data (In millions)    |   | 2010                             |   |   | 2009 |   |
| Premium income                         |   | $                                | -      |   |   | $ | 1 |   |
| Fee income                             |   |                             | 96     |   |   |   | 77 |   |
| Net investment income                  |   |                             | 97     |   |   |   | 88 |   |
| Net realized investment gains (losses) |   |                             | (13    | ) |   |   | 10 |   |
| Total revenues                         |   |                             | 180    |   |   |   | 176 |   |
| Policyholder benefits                  |   |                             | 54     |   |   |   | 59 |   |
| Operating expenses                     |   |                             | 101    |   |   |   | 89 |   |
| Total benefits and expenses            |   |                             | 155    |   |   |   | 148 |   |
| Income before income taxes             |   |                             | 25     |   |   |   | 28 |   |
| Income tax expense                     |   |                             | 10     |   |   |   | 8 |   |
| Net income                             |   | $                                | 15     |   |   | $ | 20 |   |

| (In thousands)       |   | June 30, 2010 |   |   | March 31, 2010 |   |
|----------------------|--------|--------------------|--------|--------|---------------------|--------|
| Participant accounts |   |               | 4,384  |   |                |   | 4,376 |   |

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|                                   |   | Six months ended June 30, |   |
|----------------------------------------|--------|--------------------------------|--------|
| Income statement data (In millions)    |   | 2010                           |   |   | 2009 |   |
| Premium income                         |   | $                              | 1      |   |   | $ | 2 |   |
| Fee income                             |   |                           | 191    |   |   |   | 149 |   |
| Net investment income                  |   |                           | 191    |   |   |   | 185 |   |
| Net realized investment gains (losses) |   |                           | (27    | ) |   |   | 8 |   |
| Total revenues                         |   |                           | 356    |   |   |   | 344 |   |
| Policyholder benefits                  |   |                           | 106    |   |   |   | 117 |   |
| Operating expenses                     |   |                           | 195    |   |   |   | 174 |   |
| Total benefits and expenses            |   |                           | 301    |   |   |   | 291 |   |
| Income before income taxes             |   |                           | 55     |   |   |   | 53 |   |
| Income tax expense                     |   |                           | 19     |   |   |   | 14 |   |
| Net income                             |   | $                              | 36     |   |   | $ | 39 |   |

|                 |   | June 30, |   |
|----------------------|--------|---------------|--------|
| (In thousands)       |   | 2010          |   |   | 2009 |   |
| Participant accounts |   |          | 4,384  |   |   |   | 3,788 |   |

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|                                                 |   | June 30, |    |
|------------------------------------------------------|--------|---------------|---------|
| (In millions)                                        |   | 2010          |    |   | 2009 |   |
| General account - Fixed options:                     |   |          |    |   |   |   |
| Public / Non-profit                                  |   | $             | 3,472   |   |   | $ | 3,357 |   |
| 401(k)                                               |   |          | 3,857   |   |   |   | 3,508 |   |
|                                                 |   | $             | 7,329   |   |   | $ | 6,865 |   |
| Separate account -Variable options:                  |   |          |    |   |   |   |   |   |
| Public / Non-profit                                  |   | $             | 8,249   |   |   | $ | 6,725 |   |
| 401(k)                                               |   |          | 5,887   |   |   |   | 5,210 |   |
|                                                 |   | $             | 14,136  |   |   | $ | 11,935 |   |
| Unaffiliated retail:                                 |   |          |    |   |   |   |   |   |
| Investment options and administrative services only: |   |          |    |   |   |   |   |   |
| Public / Non-profit                                  |   | $             | 48,570  |   |   | $ | 37,663 |   |
| 401(k)                                               |   |          | 20,101  |   |   |   | 16,205 |   |
| Institutional                                        |   |          | 36,115  |   |   |   | 27,137 |   |
|                                                 |   | $             | 104,786 |   |   | $ | 81,005 |   |

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|                                   |   | Three months ended June 30, |   |
|----------------------------------------|--------|----------------------------------|--------|
| Income statement data (In millions)    |   | 2010                             |   |   | 2009 |   |
| Premium income                         |   | $                                | 35     |   |   | $ | 40 |   |
| Fee income                             |   |                             | 1      |   |   |   | 2 |   |
| Net investment income                  |   |                             | 11     |   |   |   | 11 |   |
| Net realized investment gains (losses) |   |                             | (1     | ) |   |   | - |   |
| Total revenues                         |   |                             | 46     |   |   |   | 53 |   |
| Policyholder benefits                  |   |                             | 22     |   |   |   | 36 |   |
| Operating expenses                     |   |                             | 16     |   |   |   | 20 |   |
| Total benefits and expenses            |   |                             | 38     |   |   |   | 56 |   |
| Income (loss) before income taxes      |   |                             | 8      |   |   |   | (3 | ) |
| Income tax expense (benefit)           |   |                             | 3      |   |   |   | (1 | ) |
| Net income (loss)                      |   | $                                | 5      |   |   | $ | (2 | ) |

|                                |   | Six months ended June 30, |   |
|-------------------------------------|--------|--------------------------------|--------|
| Income statement data (In millions) |   | 2010                           |   |   | 2009 |   |
| Premium income                      |   | $                              | 65     |   |   | $ | 67 |   |
| Fee income                          |   |                           | 2      |   |   |   | 3 |   |
| Net investment income               |   |                           | 22     |   |   |   | 22 |   |
| Total revenues                      |   |                           | 89     |   |   |   | 92 |   |
| Policyholder benefits               |   |                           | 46     |   |   |   | 61 |   |
| Operating expenses                  |   |                           | 32     |   |   |   | 37 |   |
| Total benefits and expenses         |   |                           | 78     |   |   |   | 98 |   |
| Income (loss) before income taxes   |   |                           | 11     |   |   |   | (6 | ) |
| Income tax expense (benefit)        |   |                           | 4      |   |   |   | (2 | ) |
| Net income (loss)                   |   | $                              | 7      |   |   | $ | (4 | ) |

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| (In millions)                                                   |   | June 30, 2010 |   |   | December 31, 2009 |   |
|-----------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
| Fixed maturities, available-for-sale                            |   | $                  | 15,234 |   |              |   | 69.4 | % |   | $ | 13,918 |   |   |   | 68.3 | % |
| Fixed maturities, held for trading                              |   |               | 128    |   |              |   | 0.6 | % |   |   | 140 |   |   |   | 0.7 | % |
| Mortgage loans on real estate                                   |   |               | 1,599  |   |              |   | 7.3 | % |   |   | 1,554 |   |   |   | 7.6 | % |
| Equity investments, available-for-sale                          |   |               | 20     |   |              |   | 0.1 | % |   |   | 26 |   |   |   | 0.1 | % |
| Policy loans                                                    |   |               | 4,003  |   |              |   | 18.2 | % |   |   | 3,972 |   |   |   | 19.5 | % |
| Short-term investments, available-for-sale                      |   |               | 707    |   |              |   | 3.2 | % |   |   | 488 |   |   |   | 2.4 | % |
| Limited partnership and limited liability corporation interests |   |               | 235    |   |              |   | 1.1 | % |   |   | 254 |   |   |   | 1.3 | % |
| Other investments                                               |   |               | 26     |   |              |   | 0.1 | % |   |   | 24 |   |   |   | 0.1 | % |
| Total investment assets                                         |   | $                  | 21,952 |   |              |   | 100.0 | % |   | $ | 20,376 |   |   |   | 100.0 | % |

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| Credit Rating                       |   | June 30, 2010 |   |   | December 31, 2009 1 |   |
|-------------------------------------|--------|--------------------|--------|--------|--------------------------|--------|
| AAA                                 |   |               | 38.9   | %      |                     |   | 39.2 | % |
| AA                                  |   |               | 13.2   | %      |                     |   | 12.3 | % |
| A                                   |   |               | 22.4   | %      |                     |   | 21.6 | % |
| BBB                                 |   |               | 23.0   | %      |                     |   | 23.4 | % |
| BB and below (Non-investment grade) |   |               | 2.5    | %      |                     |   | 3.5 | % |
| Total                               |   |               | 100.0  | %      |                     |   | 100.0 | % |

| Sector            |   | June 30, 2010 |   |   | December 31, 2009 |   |
|-------------------|--------|--------------------|--------|--------|------------------------|--------|
| Utility           |   |               | 14.9   | %      |                   |   | 15.0 | % |
| Finance           |   |               | 9.6    | %      |                   |   | 10.1 | % |
| Consumer          |   |               | 9.1    | %      |                   |   | 8.6 | % |
| Natural resources |   |               | 5.3    | % 1    |                   |   | 6.3 | % 1 |
| Transportation    |   |               | 2.6    | %      |                   |   | 2.6 | % |
| Other             |   |               | 8.6    | %      |                   |   | 8.6 | % |

|                                                                 |   | Guarantor quality rating |   |   | Indirect exposure June 30, |   |
|----------------------------------------------------------------------|--------|--------------------------|--------|--------|---------------------------------|--------|
| Guarantor (In millions)                                              |   | S&P                  |   |   | Moody's                         |   |   | 2010 |   |
| MBIA Inc.                                                            |   | BB+                      |   |   | B3                              |   |   | $ | 275 |   |
| Assured Guaranty Corp. (formerly Financial Security Assurance, Inc.) |   | AAA                      |   |   | Aa3                             |   |   |   | 122 |   |
| Berkshire Hathaway Assurance Corporation                             |   | AAA                      |   |   | Aaa                             |   |   |   | 35 |   |
| National Public Finance Guaranty Corporation                         |   | A                        |   |   | Baa1                            |   |   |   | 115 |   |
|                                                                 |   |                     |   |   |                            |   |   | $ | 547 |   |

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| · | The Company holds approximately $7,742 million in various mortgage-backed and asset-backed collateralized mortgage securities including securities backed by U.S. agencies, of which $2,073 million are experiencing unrealized losses of approximately $239 million at June 30, 2010.  Included in this amount is $105 million which has declined and remained below amortized cost by 20% or more.  Of the $239 million in unrealized losses, approximately $27 million is related to securities on which there had been a credit rating downgrade since December 31, 2009.  Of the $27 million, $24 million are rated investment grade and $3 million are rated non-investment grade at June 30, 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 $7,600 million of corporate debt securities of which $844 million are experiencing unrealized losses of approximately $156 million at June 30, 2010.  Included in this amount is $107 million which has declined and remained below amortized cost by 20% or more.  Approximately $15 million of the $156 million was related to securities on which there had been a credit rating downgrade since December 31, 2009, although all retain an investment grade rating. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| · | Valuation and accounting for derivative instruments. |
|--------|------------------------------------------------------|

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

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

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

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

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

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It

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

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

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

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

It

| (a) | As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and its Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934).  Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that the Company’s current disclosure controls and procedures are effective in facilitating timely decisions regarding required disclosure of any material information relating to the Company that is required to be disclosed by it in the reports that are filed or submitted under the Securities Exchange Act of 1934. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | There have been no changes in the Company’s internal control over financial reporting that occurred during the six months ended June 30, 2010 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | Competition could negatively affect the ability of the Company to maintain or increase market share or profitability; |
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| · | The insurance industry is heavily regulated and changes in regulation may reduce profitability; |
|--------|-------------------------------------------------------------------------------------------------|

| · | A downgrade or potential downgrade in the Company’s financial strength or claims paying ratings could result in a loss of business and negatively affect results of operations and financial condition; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Deviations from assumptions regarding future persistency, mortality and interest rates used in calculating policy benefit liabilities for future policyholder benefits and claims could adversely affect the Company’s results of operations and financial condition; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Company may be required to accelerate the amortization of deferred acquisition costs or valuation of business acquired, or recognize impairment in the value of goodwill, which could adversely affect its results of operations and financial condition; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If the companies that provide reinsurance default or fail to perform or the Company is unable to obtain adequate reinsurance for some of the risks underwritten, the Company could incur significant losses adversely affecting results of operations and financial condition; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Interest rate fluctuations could have a negative impact on results of operations and financial condition; |
|--------|-----------------------------------------------------------------------------------------------------------|

| · | Market fluctuations and general economic conditions may adversely affect results of operations and financial condition; |
|--------|-------------------------------------------------------------------------------------------------------------------------|

| · | Changes in U.S. federal income tax law could make some of the Company’s products less attractive to consumers and increase its tax costs; |
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| · | The Company may be subject to litigation resulting in substantial awards or settlements, and this may adversely affect its reputation and results of operations; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Company’s risk management policies and procedures may leave it exposed to unidentified or unanticipated risk, which could adversely affect its business, results of operations and financial condition and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Company may experience difficulty in marketing and distributing products through its current and future distribution channels. |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

It

| 31.1 |   | Rule 13a-14(a)/15-d14(a) Certification |   |   |
|------|--------|----------------------------------------|--------|--------|
| 31.2 |   | Rule 13a-14(a)/15-d14(a) Certification |   |   |
| 32   |   | 18 U.S.C. 1350 Certification           |   |   |

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

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