----

----

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| For the quarterly period endedSeptember 30, 2010  | Commission File Numbers: 2-99959, 33-29851, 33-31711, 33-41858, 33-43008, 33-58853, 333-11699, 333-77041, 333-62837, 333-45923, 333-88069, 333-39306, 333-46566, 333-82816, 333-82824, 333-111636, 333-130699, 333-130703, 333-130704, 333-133684, 333-133685, 333-133686, 333-39034, 333-144903-01, 333-144908-01, 333-144911-01, 333-144912-01, 333-155716, 333-155726, 333-155791, 333-155792, 333-155793, 333-155797, 333-156303, 333-156304, 333-156308, 333-160605, 333-160606, 333-160607, 333-169558-01, 333-169559-01, 333-169560-01, and 333-169561-01 |
|--------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Delaware                                                       | 04-2461439                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |

| One Sun Life Executive Park, Wellesley Hills, MA | 02481      |
|--------------------------------------------------|------------|
| (Address of principal executive offices)         | (Zip Code) |

| Large accelerated filer ¨          |                                          | Accelerated filer ¨         |
|-----------------------------------------|-----------------------------------------------|----------------------------------|
| Non-accelerated filer  þ | (Do not check if a smaller reporting company) | Smaller reporting company ¨ |

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

|    | PART I - FINANCIAL INFORMATION                                                                                                                                |   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|    |                                                                                                                                                          |   |
| Item 1. | Financial Statements:                                                                                                                                         |   |
|    |                                                                                                                                                          |   |
|    | Condensed Consolidated Statements of Operations for the nine-month periods endedSeptember 30, 2010 and 2009 (Unaudited)                                  | 3      |
|    |                                                                                                                                                          |   |
|    | Condensed Consolidated Statements of Operations for the three-month periods endedSeptember 30, 2010 and 2009 (Unaudited)                                 | 4      |
|    |                                                                                                                                                          |   |
|    | Condensed Consolidated Balance Sheets as of September 30, 2010 and December 31,2009 (Unaudited)                                                               | 5      |
|    |                                                                                                                                                          |   |
|    | Condensed Consolidated Statements of Comprehensive Income (Loss) for the nine and three-month periods ended September 30, 2010 and 2009 (Unaudited)           | 6      |
|    |                                                                                                                                                          |   |
|    | Condensed Consolidated Statements of Changes in  Stockholder’s Equity for the nine-monthperiods ended September 30, 2010 and 2009 (Unaudited) | 7      |
|    |                                                                                                                                                          |   |
|    | Condensed Consolidated Statements of Cash Flows for the nine-month periods endedSeptember 30, 2010 and 2009 (Unaudited)                                       | 8      |
|    |                                                                                                                                                          |   |
|    | Notes to the Unaudited Condensed Consolidated Financial Statements                                                                                            | 10     |
|    |                                                                                                                                                          |   |
| Item 2. | Management's Discussion and Analysis of Financial Position and Results of Operations                                                                          | 72     |
|    |                                                                                                                                                          |   |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk                                                                                                    | 85     |
|    |                                                                                                                                                          |   |
| Item 4. | Controls and Procedures                                                                                                                                       | 85     |

|     | PART II - OTHER INFORMATION                                 |   |
|----------|-------------------------------------------------------------|--------|
|     |                                                        |   |
| Item 1.  | Legal Proceedings                                           | 85     |
|     |                                                        |   |
| Item 1A. | Risk Factors                                                | 85     |
|     |                                                        |   |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds | 85     |
|     |                                                        |   |
| Item 3.  | Defaults Upon Senior Securities                             | 85     |
|     |                                                        |   |
| Item 4.  | (Removed and Reserved)                                      | 85     |
|     |                                                        |   |
| Item 5.  | Other Information                                           | 85     |
|     |                                                        |   |
| Item 6.  | Exhibits                                                    | 86     |

----

|                                                                                                         | Unaudited  |
|--------------------------------------------------------------------------------------------------------------|-----------------|
|                                                                                                         |  2010      |   |  2009 |
|                                                                                                         |            |   |   |   |   |
| Revenues                                                                                                     |            |   |   |   |   |
|                                                                                                         |            |   |   |   |   |
| Premiums and annuity considerations                                                                          | $               | 100,387  |   | $ | 101,012  |
| Net investment income (1)                                                                                    |            | 1,333,987  |   |   | 2,261,645  |
| Net derivative loss (Note 5)                                                                                 |            |  (623,064) |   |   | (182,879) |
| Net realized investment gains (losses), excluding impairment  losses on available-for-sale securities   |            | 16,859  |   |   | (8,401) |
| Other-than-temporary impairment losses (2)  (Note 5)                                               |            |  (885) |   |   | (4,834) |
| Fee and other income                                                                                         |            | 361,524  |   |   | 294,902  |
|                                                                                                         |            |   |   |   |   |
| Total revenues                                                                                               |            |          1,188,808  |   |   | 2,461,445  |
|                                                                                                         |            |   |   |   |   |
| Benefits and Expenses                                                                                        |            |   |   |   |   |
|                                                                                                         |            |   |   |   |   |
| Interest credited                                                                                            |            |  308,693  |   |   | 292,080  |
| Interest expense                                                                                             |            | 39,517  |   |   | 33,981  |
| Policyowner benefits                                                                                         |            | 143,673  |   |   | 87,912  |
| Amortization of deferred policy acquisition costs and value of  business and customer renewals acquired |            | 177,434  |   |   | 520,068  |
| Other operating expenses                                                                                     |            |  236,347  |   |   | 174,940  |
|                                                                                                         |            |   |   |   |   |
| Total benefits and expenses                                                                                  |            |  905,664  |   |   | 1,108,981  |
|                                                                                                         |            |   |   |   |   |
| Income from continuing operations before income tax expense                                                  |            | 283,144  |   |   | 1,352,464  |
|                                                                                                         |            |   |   |   |   |
| Income tax expense                                                                                           |            |               91,088  |   |   | 388,593  |
|                                                                                                         |            |   |   |   |   |
| Net income from continuing operations                                                                        |            | 192,056  |   |   | 963,871  |
|                                                                                                         |            |   |   |   |   |
| Income from discontinued operations, net of tax (Note 1)                                                |            | -  |   |   | 144,726  |
|                                                                                                         |            |   |   |   |   |
| Net income                                                                                                   | $               | 192,056  |   | $ | 1,108,597  |

|   | (1)Net investment income includes an increase in the market value of trading fixed maturity securities of $748.7 million and $1,893.3 million for the nine-month periods ended September 30, 2010 and 2009, respectively. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)The other-than-temporary impairment (“OTTI”) losses for the nine-month periods ended September 30, 2010 and 2009 represent solely credit losses.  The Company incurred no non-credit OTTI losses during the nine-month period ended September 30, 2010 and 2009, and as such, no non-credit OTTI losses were recognized in other comprehensive income for the periods. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                         | Unaudited  |
|--------------------------------------------------------------------------------------------------------------|-----------------|
|                                                                                                         |  2010      |   |  2009 |
|                                                                                                         |            |   |   |   |   |
| Revenues                                                                                                     |            |   |   |   |   |
|                                                                                                         |            |   |   |   |   |
| Premiums and annuity considerations                                                                          | $               | 32,145  |   | $ | 35,517  |
| Net investment income (1)                                                                                    |            | 482,540  |   |   | 1,044,702  |
| Net derivative loss (Note 5)                                                                                 |            |  (55,899) |   |   | (346,531) |
| Net realized investment gains (losses), excluding impairment  losses on available-for-sale securities   |            | 520  |   |   | (5,564) |
| Other-than-temporary impairment losses (Note 5)                                                         |            | -  |   |   | -  |
| Fee and other income                                                                                         |            | 125,296  |   |   | 128,234  |
|                                                                                                         |            |   |   |   |   |
| Total revenues                                                                                               |            | 584,602  |   |   | 856,358  |
|                                                                                                         |            |   |   |   |   |
| Benefits and Expenses                                                                                        |            |   |   |   |   |
|                                                                                                         |            |   |   |   |   |
| Interest credited                                                                                            |            | 131,882  |   |   | 66,922  |
| Interest expense                                                                                             |            | 13,065  |   |   | 8,243  |
| Policyowner benefits                                                                                         |            | 27,096  |   |   | (2,124) |
| Amortization of deferred policy acquisition costs and value of  business and customer renewals acquired |            | 430,666  |   |   | 118,248  |
| Other operating expenses                                                                                     |            | 76,554  |   |   | 81,196  |
|                                                                                                         |            |   |   |   |   |
| Total benefits and expenses                                                                                  |            | 679,263  |   |   | 272,485  |
|                                                                                                         |            |   |   |   |   |
| (Loss) income from continuing operations before income tax  (benefit) expense                           |            | (94,661) |   |   | 583,873  |
|                                                                                                         |            |   |   |   |   |
| Income tax (benefit) expense                                                                                 |            | (30,266) |   |   | 114,710  |
|                                                                                                         |            |   |   |   |   |
| Net (loss) income from continuing operations                                                                 |            |  (64,395) |   |   | 469,163  |
|                                                                                                         |            |   |   |   |   |
| Income from discontinued operations, net of tax (Note 1)                                                |            | -  |   |   | 148,510  |
|                                                                                                         |            |   |   |   |   |
| Net (loss) income                                                                                            | $               |  (64,395) |   | $ | 617,673  |

|   | (1)Net investment income include an increase in the market value of trading fixed maturity securities of $298.8 million and $951.9 million for the three-month periods ended September 30, 2010 and 2009, respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                   | Unaudited                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|
| ASSETS                                                                                                                                                 |  September 30, 2010 |   |  December 31, 2009 |
| Investments                                                                                                                                            |                     |   |   |   |   |
| Available-for-sale fixed maturity securities at fair value (amortized cost of $1,440,127  and $1,121,424 in 2010 and 2009, respectively) (Note 5) | $                        | 1,558,263  |   | $ | 1,175,516  |
| Trading fixed maturity securities at fair value (amortized cost of $12,302,652 and  $12,042,961 in 2010 and 2009, respectively) (Note 5)          |                     | 12,136,961  |   |   | 11,130,522  |
| Mortgage loans                                                                                                                                         |                     | 1,805,209  |   |   | 1,911,961  |
| Derivative instruments – receivable (Note 5)                                                                                                     |                     | 333,398  |   |   | 259,227  |
| Limited partnerships                                                                                                                                   |                     | 44,694  |   |   | 51,656  |
| Real estate                                                                                                                                            |                     | 206,892  |   |   | 202,277  |
| Policy loans                                                                                                                                           |                     | 710,060  |   |   | 722,590  |
| Other invested assets                                                                                                                                  |                     | 7,825  |   |   | 47,421  |
| Short-term investments (Note 1)                                                                                                                        |                     | 15,043  |   |   | 1,267,311  |
| Cash and cash equivalents                                                                                                                              |                     | 1,394,677  |   |   | 1,804,208  |
| Total investments and cash                                                                                                                             |                     | 18,213,022  |   |   | 18,572,689  |
|                                                                                                                                                   |                     |   |   |   |   |
| Accrued investment income                                                                                                                              |                     | 206,036  |   |   | 230,591  |
| Deferred policy acquisition costs and sales inducement asset                                                                                           |                     | 2,193,906  |   |   | 2,173,642  |
| Value of business and customer renewals acquired                                                                                                       |                     | 145,705  |   |   | 168,845  |
| Net deferred tax asset (Note 11)                                                                                                                       |                     | 390,446  |   |   | 549,764  |
| Goodwill (Note 10)                                                                                                                                     |                     | 7,299  |   |   | 7,299  |
| Receivable for investments sold                                                                                                                        |                     | 131,374  |   |   | 12,611  |
| Reinsurance receivable                                                                                                                                 |                     | 2,368,431  |   |   | 2,350,207  |
| Other assets                                                                                                                                           |                     | 130,379  |   |   | 183,963  |
| Separate account assets                                                                                                                                |                     | 25,358,400  |   |   | 23,326,323  |
|                                                                                                                                                   |                     |   |   |   |   |
| Total assets                                                                                                                                           | $                        | 49,144,998  |   | $ | 47,575,934  |
|                                                                                                                                                   |                     |   |   |   |   |
| LIABILITIES                                                                                                                                            |                     |   |   |   |   |
|                                                                                                                                                   |                     |   |   |   |   |
| Contractholder deposit funds and other policy liabilities                                                                                              | $                        | 15,615,912  |   | $ | 16,709,589  |
| Future contract and policy benefits                                                                                                                    |                     | 856,677  |   |   | 815,638  |
| Payable for investments purchased                                                                                                                      |                     | 190,753  |   |   | 88,131  |
| Accrued expenses and taxes                                                                                                                             |                     | 74,160  |   |   | 61,903  |
| Debt payable to affiliates                                                                                                                             |                     | 783,000  |   |   | 883,000  |
| Reinsurance payable                                                                                                                                    |                     | 2,240,419  |   |   | 2,231,764  |
| Derivative instruments – payable (Note 5)                                                                                                        |                     | 500,880  |   |   | 572,910  |
| Other liabilities                                                                                                                                      |                     |  284,551  |   |   | 280,224  |
| Separate account liabilities                                                                                                                           |                     | 25,358,400  |   |   | 23,326,323  |
|                                                                                                                                                   |                     |   |   |   |   |
| Total liabilities                                                                                                                                      |                     | 45,904,752  |   |   | 44,969,482  |
|                                                                                                                                                   |                     |   |   |   |   |
| Commitments and contingencies (Note 7)                                                                                                                 |                     |   |   |   |   |
|                                                                                                                                                   |                     |   |   |   |   |
| STOCKHOLDER’S EQUITY                                                                                                                             |                     |   |   |   |   |
|                                                                                                                                                   |                     |   |   |   |   |
| Common stock, $1,000 par value – 10,000 shares authorized; 6,437 shares  issued and outstanding in 2010 and 2009                       | $                        |    6,437  |   | $ | 6,437  |
| Additional paid-in capital                                                                                                                             |                     |     3,927,886  |   |   | 3,527,677  |
| Accumulated other comprehensive income                                                                                                                 |                     |    76,773  |   |   | 35,244  |
| Accumulated deficit                                                                                                                                    |                     |     (770,850) |   |   | (962,906) |
|                                                                                                                                                   |                     |   |   |   |   |
| Total stockholder’s equity                                                                                                                       |                     | 3,240,246  |   |   | 2,606,452  |
|                                                                                                                                                   |                     |   |   |   |   |
| Total liabilities and stockholder’s equity                                                                                                       | $                        | 49,144,998  |   | $ | 47,575,934  |

----

|                                                                                                                              | Unaudited |
|-----------------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                                              |      |  2010 |   |   |  2009 |
|                                                                                                                              |      |   |   |   |   |
| Net income                                                                                                                        | $         | 192,056  |   | $ | 1,108,597  |
|                                                                                                                              |      |   |   |   |   |
| Other comprehensive income:                                                                                                       |      |   |   |   |   |
|                                                                                                                              |      |   |   |   |   |
| Change in unrealized holding gains on available-for-sale fixed  maturity securities, net of tax and policyholder amounts (1) |      | 58,513  |   |   | 119,266  |
| Reclassification adjustment for OTTI losses, net of tax (2)                                                                       |      | 938  |   |   | -  |
| Reclassification adjustments of net realized investment (gains)  losses into net income, net of tax (3)       |      | (17,922) |   |   | 934  |
|                                                                                                                              |      |   |   |   |   |
| Other comprehensive income                                                                                                        |      | 41,529  |   |   | 120,200  |
|                                                                                                                              |      |   |   |   |   |
| Comprehensive income                                                                                                              | $         | 233,585  |   | $ | 1,228,797  |

| (1)   | Net of tax expense of $(31.5) million and $(64.2) million for the nine-month periods ended September 30, 2010 and 2009, respectively. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Represents an adjustment to OTTI losses due to the sale of other-than-temporarily impaired available-for-sale fixed maturity securities. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Net of tax benefit (expense) of $9.7 million and $(0.5) million for the nine-month periods ended September 30, 2010 and 2009, respectively. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                     | Unaudited |
|----------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                     |      |  2010 |   |   |  2009 |
|                                                                                                     |      |   |   |   |   |
| Net (loss) income                                                                                        | $         | (64,395) |   | $ | 617,673  |
|                                                                                                     |      |   |   |   |   |
| Other comprehensive income:                                                                              |      |   |   |   |   |
|                                                                                                     |      |   |   |   |   |
| Change in unrealized holding gains on available-for-sale fixed  maturity securities, net of tax (4) |      | 50,345  |   |   | 67,984  |
| Reclassification adjustment for OTTI losses, net of tax (2)                                              |      | 834  |   |   | -  |
| Reclassification adjustments of net realized investment gains into  net income, net of tax (5) |      | (15,539) |   |   | (1,027) |
|                                                                                                     |      |   |   |   |   |
| Other comprehensive income                                                                               |      | 35,640  |   |   | 66,957  |
|                                                                                                     |      |   |   |   |   |
| Comprehensive (loss) income                                                                              | $         | (28,755) |   | $ | 684,630  |

| (4)   | Net of tax expense of $(27.1) million and $(36.6) million for the three-month periods ended September 30, 2010 and 2009, respectively. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Net of tax benefit of $8.4 million and $0.5 million for the three-month periods ended September 30, 2010 and 2009, respectively. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                    | CommonStock |    | AdditionalPaid-InCapital |   | AccumulatedOtherComprehensive(Loss) Income(1) |   | RetainedEarnings(AccumulatedDeficit) |          | TotalStockholder’sEquity |
|-------------------------------------------------------------------------------------------------------------------------|-------------|---------|--------------------------|--------|-----------------------------------------------|--------|--------------------------------------|---------------|--------------------------------|
|                                                                                                                    |        |    |                     |   |                                          |   |                                 |          |                           |   |   |   |   |   |
| Balance at December 31, 2008                                                                                            | $           | 6,437   |                     | $      | 2,872,242                                |   | $                                    | (129,884)     |                           | $ | (1,953,540) |   | $ | 795,255  |
|                                                                                                                    |        |    |                     |   |                                          |   |                                 |          |                           |   |   |   |   |   |
| Cumulative effect of accounting  changes related to the adoption  of FASB ASC Topics 320, net  of tax(2) |        | -  |                     |   | -                                        |   |                                 | (9,138)       |                           |   | 9,138  |   |   | -  |
| Net income                                                                                                              |        | -  |                     |   | -                                        |   |                                 | -        |                           |   | 1,108,597  |   |   | 1,108,597  |
| Tax benefit from stock options                                                                                          |        | -  |                     |   | 128                                      |   |                                 | -        |                           |   | -  |   |   | 128  |
| Capital contribution from Parent (Note 2)                                                                               |        | -  |                     |   | 748,652                                  |   |                                 | -        |                           |   | -  |   |   | 748,652  |
| Other comprehensive income                                                                                              |        | -  |                     |   | -                                        |   |                                 | 120,200  |                           |   | -  |   |   | 120,200  |
|                                                                                                                    |        |    |                     |   |                                          |   |                                 |          |                           |   |   |   |   |   |
| Balance at September 30, 2009                                                                                           | $           | 6,437   |                     | $      | 3,621,022                                |   | $                                    | (18,822)      |                           | $ | (835,805) |   | $ | 2,772,832  |
|                                                                                                                    |        |    |                     |   |                                          |   |                                 |          |                           |   |   |   |   |   |
|                                                                                                                    |        |    |                     |   |                                          |   |                                 |          |                           |   |   |   |   |   |
| Balance at December 31, 2009                                                                                            | $           | 6,437   |                     | $      | 3,527,677                                     |   | $                                    | 35,244        |                           | $ | (962,906) |   | $ | 2,606,452 |
|                                                                                                                    |        |    |                     |   |                                          |   |                                 |          |                           |   |   |   |   |   |
| Net income                                                                                                              |        | -  |                     |   | -                                        |   |                                 | -        |                           |   | 192,056  |   |   | 192,056  |
| Tax benefit from stock options                                                                                          |        | -  |                     |   | 209                                      |   |                                 | -        |                           |   | -  |   |   | 209  |
| Capital contribution from Parent(Note 2)                                                                                |        | -  |                     |   | 400,000                                  |   |                                 | -        |                           |   | -  |   |   | 400,000  |
| Other comprehensive income                                                                                              |        | -  |                     |   | -                                        |   |                                 | 41,529   |                           |   | -  |   |   | 41,529  |
|                                                                                                                    |        |    |                     |   |                                          |   |                                 |          |                           |   |   |   |   |   |
| Balance at September 30, 2010                                                                                           | $           | 6,437   |                     | $      | 3,927,886                                |   | $                                    | 76,773   |                           | $ | (770,850) |   | $ | 3,240,246  |

|   | (1)  As of September 30, 2010, the total amount of after tax non-credit OTTI losses recorded in the Company’s accumulated other comprehensive income was $8.0 million. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 320, “Investments - Debt and Equity Securities.” |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                              | Unaudited |
|-----------------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                                              | 2010      |   | 2009 |
|                                                                                                                              |      |   |   |   |   |
| Cash Flows From Operating Activities:                                                                                             |      |   |   |   |   |
| Net income                                                                                                                        | $         | 192,056  |   | $ | 1,108,597  |
| Adjustments to reconcile net income to net cash provided by operating       activities:             |      |   |   |   |   |
| Net amortization of premiums on investments                                                                                       |      | 19,720  |   |   | 7,951  |
| Amortization of deferred policy acquisition costs and value of  business and customer renewals acquired                      |      | 177,434  |   |   | 520,068  |
| Depreciation and amortization                                                                                                     |      | 2,396  |   |   | 4,283  |
| Net losses on derivatives                                                                                                         |      | 525,706  |   |   | 92,701  |
| Net realized (gains) losses and OTTI credit losses on available-for-  sale investments                                       |      | (15,974) |   |   | 13,235  |
| Net increase in fair value of trading investments                                                                                 |      | (748,723) |   |   | (1,893,261) |
| Net realized losses on trading investments                                                                                        |      | 32,454  |   |   | 268,136  |
| Undistributed loss on private equity limited partnerships                                                                         |      | 399  |   |   | 11,477  |
| Interest credited to contractholder deposits                                                                                      |      | 308,693  |   |   | 292,080  |
| Deferred federal income taxes                                                                                                     |      | 136,956  |   |   | 324,566  |
| Changes in assets and liabilities:                                                                                                |      |   |   |   |   |
| Additions to deferred policy acquisition costs, sales inducement asset  and value of business and customer renewals acquired |      | (191,025) |   |   | (279,827) |
| Accrued investment income                                                                                                         |      | 24,555  |   |   | 48,642  |
| Net change in reinsurance receivable/payable                                                                                      |      | 90,732  |   |   | 96,196  |
| Future contract and policy benefits                                                                                               |      | 41,039  |   |   | (111,247) |
| Other, net                                                                                                                        |      | 115,574  |   |   | (110,508) |
| Adjustments related to discontinued operations                                                                                    |      | -  |   |   | (4,890) |
|                                                                                                                              |      |   |   |   |   |
| Net cash provided by operating activities                                                                                         |      | 711,992  |   |   | 388,199  |
|                                                                                                                              |      |   |   |   |   |
| Cash Flows From Investing Activities:                                                                                             |      |   |   |   |   |
| Sales, maturities and repayments of:                                                                                              |      |   |   |   |   |
| Available-for-sale fixed maturity securities                                                                                      |      | 382,800  |   |   | 40,106  |
| Trading fixed maturity securities                                                                                                 |      | 3,104,949  |   |   | 1,203,168  |
| Mortgage loans                                                                                                                    |      | 119,411  |   |   | 108,465  |
| Other invested assets                                                                                                             |      | (102,786) |   |   | (124,105) |
| Purchases of:                                                                                                                     |      |   |   |   |   |
| Available-for-sale fixed maturity securities                                                                                      |      | (675,547) |   |   | (337,123) |
| Trading fixed maturity securities                                                                                                 |      | (3,460,100) |   |   | (471,133) |
| Mortgage loans                                                                                                                    |      | (29,613) |   |   | (12,059) |
| Real estate                                                                                                                       |      | (3,502) |   |   | (1,551) |
| Other invested assets                                                                                                             |      | (47,524) |   |   | (97,923) |
| Net change in other investments                                                                                                   |      | -  |   |   | (100,476) |
| Net change in policy loans                                                                                                        |      | 12,530  |   |   | 9,979  |
| Net change in short-term investments (Note 1)                                                                                     |      | 1,252,268  |   |   | 229,662  |
|                                                                                                                              |      |   |   |   |   |
| Net cash provided by investing activities                                                                                         | $         | 552,886  |   | $ | 447,010  |

----

|                                                | Unaudited  |
|-----------------------------------------------------|------------|
|                                                |  2010 |   |  2009 |
|                                                |       |   |   |   |   |
| Cash Flows From Financing Activities:               |       |   |   |   |   |
| Additions to contractholder deposit funds           | $          | 962,790  |   | $ | 2,302,067  |
| Withdrawals from contractholder deposit funds       |       | (2,917,432) |   |   | (2,313,659) |
| Repayment of debt                                   |       | (100,000) |   |   | -  |
| Debt proceeds                                       |       | -  |   |   | 100,000  |
| Capital contribution from Parent                    |       | 400,000  |   |   | 748,652  |
| Other, net                                          |       | (19,767) |   |   | (44,550) |
|                                                |       |   |   |   |   |
| Net cash (used in) provided by financing activities |       | (1,674,409) |   |   | 792,510  |
|                                                |       |   |   |   |   |
| Net change in cash and cash equivalents             |       | (409,531) |   |   | 1,627,719  |
|                                                |       |   |   |   |   |
| Cash and cash equivalents, beginning of period      |       | 1,804,208  |   |   | 1,024,668  |
|                                                |       |   |   |   |   |
| Cash and cash equivalents, end of period            | $          | 1,394,677  |   | $ | 2,652,387  |
|                                                |       |   |   |   |   |

----

----

|                                         | Nine-month period ended |                                                                             | Three-month period ended |
|----------------------------------------------|-------------------------|----------------------------------------------------------------------------------|--------------------------|
|                                         | September 30, 2009      |                                                                             | September 30, 2009       |
|                                         |                    |                                                                             |                     |
| Total revenues                               |                    | $          284,217   |                     |   | $             288,227   |
| Total benefits and expenses                  |                    | 77,395                                                            |                     |   | 68,487   |
| Income before income tax   expense |                    | 206,822                                                                |                     |   | 219,740   |
|                                         |                    |                                                                             |                     |   |   |
| Net income                                   |                    | $          144,726   |                     |   | $             148,510   |

----

|                                           | As Previously                                                                                            |                                   |                                               |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------|----------------------------------------|----------------------------------------------------|
|                                           | Reported                                                                                  | Adjustments                            | As Restated                                        |
| Net change in short-term investments           | $                -  | $    229,662  | $      229,662  |
| Net cash provided by investing activities      | $      217,348                                                             | $    229,662  | $      447,010  |
| Net change in cash and cash equivalents        | $   1,398,057                                                                             | $    229,662  | $   1,627,719                  |
| Cash and cash equivalents, beginning of period | $   1,624,149                                                                             | $   (599,481)           | $   1,024,668                  |
| Cash and cash equivalents, end of period       | $   3,022,206                                                                             | $   (369,819)           | $   2,652,387                  |
|                                           |                                                                                                     |                                   |                                               |

----

| Ø   | The different classes of assets and liabilities measured at fair value; |
|--------------------|-------------------------------------------------------------------------|

| Ø   | The valuation techniques and inputs used; |
|--------------------|-------------------------------------------|

| Ø   | The transfers between Levels 1, 2, and 3; and |
|--------------------|-----------------------------------------------|

| Ø   | The activity in Level 3 fair value measurements. |
|--------------------|--------------------------------------------------|

----

| Ø   | An embedded derivative feature relating to another type of risk (including another type of credit risk) is present in the securitized financial instrument. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | The holder of an interest in a tranche of securitized financial instruments is exposed to the possibility of being required to make potential future payments because the possibility of those future payments is not created by subordination. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | The holder owns an interest in a single-tranche securitization vehicle; therefore, the subordination of one tranche to another is not relevant. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

|                  | Nine-month periods ended |      | Three-month periods ended |   |
|-----------------------|--------------------------|-----------|---------------------------|--------|
|                  | September 30,            |      | September 30,             |   | September 30, |   | September 30, |   |
|                  | 2010                     |      | 2009                      |   | 2010 |   | 2009 |   |
|                  |                     |      |                      |   |   |   |   |   |   |   |   |   |
| Value of distribution | $                        | 224  |                      | $      | 224  |   | $ | 75  |   | $ | 75  |   |
| VOBA                  |                     | -    |                      |   | 888  |   |   | -  |   |   | 25  |   |
| VOCRA                 |                     | 846  |                      |   | 779  |   |   | 267  |   |   | 710  |   |

----

----

|                                                                                     | Nine-month period ended September 30, 2010         |   |                                                        |
|------------------------------------------------------------------------------------------|----------------------------------------------------|--------|-------------------------------------------------------------|
|                                                                                     |                                               |   |                                                        |   |   |   |   |   |   |
|                                                                                     | Wealth                                             |   | Individual                                                  |   | Group |   |   |   |   |
|                                                                                     | Management                                         |   | Protection                                                  |   | Protection |   | Corporate |   | Totals |
| Total revenues                                                                           |  $ 1,080,834                             |   |  $   43,035                        |   |  $    96,555  |   |  $   (31,616) |   |  $ 1,188,808  |
| Total benefits and expenses                                                              | 760,992                                       |   |    38,563                               |   |             90,982  |   | 15,127  |   | 905,664  |
| Income (loss) before income  tax expense (benefit)                                  | 319,842                                       |   |         4,472  |   |               5,573  |   |  (46,743) |   | 283,144  |
| Net income (loss)                                                                        |  $    221,310        |   |  $     3,026             |   |  $      3,632  |   |  $   (35,912) |   |  $    192,056  |
|                                                                                     |                                               |   |                                                        |
|                                                                                     | Nine-month period ended September 30, 2009         |   |                                                        |
|                                                                                     |                                               |   |                                                        |   |   |   |   |   |   |
|                                                                                     | Wealth                                             |   | Individual                                                  |   | Group |   |   |   |   |
|                                                                                     | Management                                         |   | Protection                                                  |   | Protection |   | Corporate |   | Totals |
| Total revenues                                                                           | $   2,308,049                  |   | $   60,321                              |   | $  104,252  |   | $  (11,177) |   | $  2,461,445  |
| Total benefits and expenses                                                              | 976,677                                       |   | 30,340                                                 |   | 86,051  |   | 15,913  |   | 1,108,981  |
| Income (loss) from continuing  operations before income tax  expense (benefit) | 1,331,372                                     |   | 29,981                                                 |   | 18,201  |   | (27,090) |   | 1,352,464  |
|                                                                                     |                                               |   |                                                        |   |   |   |   |   |   |
| Net income from continuing  operations                                              | 879,559                                       |   | 9,301                                                  |   | 11,830  |   | 63,181  |   | 963,871  |
| Income from discontinued  operations, net of tax                               | -                                                  |   | 144,726                                                |   | -  |   | -  |   | 144,726  |
|                                                                                     |                                               |   |                                                        |   |   |   |   |   |   |
| Net income                                                                               | $      879,559  |   | $ 154,027                                              |   | $    11,830  |   | $    63,181  |   | $  1,108,597  |

----

|                                                                                | Three-month period ended September 30, 2010 |   |                                                   |
|-------------------------------------------------------------------------------------|---------------------------------------------|--------|--------------------------------------------------------|
|                                                                                |                                        |   |                                                   |   |   |   |   |   |   |
|                                                                                | Wealth                                      |   | Individual                                             |   | Group |   |   |   |   |
|                                                                                | Management                                  |   | Protection                                             |   | Protection |   | Corporate |   | Totals |
| Total revenues                                                                      |  $ 535,357                        |   |  $    15,364             |   |  $         31,979  |   |  $     1,902  |   |  $    584,602  |
| Total benefits and expenses                                                         | 634,805                                |   | 12,255                                            |   |             28,990  |   |          3,213  |   |         679,263  |
| (Loss) income before income    tax (benefit) expense                 |  (99,448)                              |   | 3,109                                             |   |               2,989  |   |        (1,311) |   |              (94,661) |
| Net (loss) income                                                                   |  $  (61,348)                 |   |  $      2,055  |   |  $           1,950  |   |  $    (7,052) |   |  $    (64,395) |
|                                                                                |                                        |   |                                                   |
|                                                                                | Three-month period ended September 30, 2009 |   |                                                   |
|                                                                                |                                        |   |                                                   |   |   |   |   |   |   |
|                                                                                | Wealth                                      |   | Individual                                             |   | Group |   |   |   |   |
|                                                                                | Management                                  |   | Protection                                             |   | Protection |   | Corporate |   | Totals |
| Total revenues                                                                      | $   790,579             |   | $     28,794             |   | $   35,073  |   | $      1,912  |   | $   856,358  |
| Total benefits and expenses                                                         | 243,062                                |   | (2,765)                                                |   | 30,335  |   | 1,853  |   | 272,485  |
| Income from continuing   operations before income tax   expense | 547,517                                |   | 31,559                                            |   | 4,738  |   | 59  |   | 583,873  |
|                                                                                |                                        |   |                                                   |   |   |   |   |   |   |
| Net income from continuing   operations                                   | 367,050                                |   | 13,943                                            |   | 3,079  |   | 85,091  |   | 469,163  |
| Income from discontinued     operations, net of tax             | -                                      |   | 148,510                                           |   | -  |   | -  |   | 148,510  |
|                                                                                |                                        |   |                                                   |   |   |   |   |   |   |
| Net income                                                                          | $    367,050            |   | $   162,453                        |   | $     3,079  |   | $    85,091  |   | $   617,673  |

----

----

| ·   | Unadjusted quoted prices for identical assets or liabilities in an active market. |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | Quoted prices in markets that are not active or significant inputs that are observable either directly or indirectly. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| a)   | Quoted prices for similar assets or liabilities in active markets, |
|----------------|--------------------------------------------------------------------|

| b)   | Quoted prices for identical or similar assets or liabilities in non-active markets, |
|----------------|-------------------------------------------------------------------------------------|

| c)   | Inputs other than quoted market prices that are observable, and |
|----------------|-----------------------------------------------------------------|

| d)   | Inputs that are derived principally from or corroborated by observable market data through correlation or other means. |
|----------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect management's own assumptions about the assumptions a market participant would use in pricing the asset or liability. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                     |   | Level 1 |             | Level 2 |   | Level 3          |   | Total  |
|----------------------------------------------------------|--------|---------|------------------|---------|--------|------------------|--------|--------|
| Assets                                                   |   |    |             |    |   |             |   |   |   |   |   |   |
| Available-for-sale fixed maturity securities:            |   |    |             |    |   |             |   |   |   |   |   |   |
| Asset-backed securities                                  |   | $       | -           |    | $      | 708         |   | $      | 16  |   | $ | 724  |
| Residential mortgage-backed securities                   |   |    | -           |    |   | 37,938      |   |   | -  |   |   | 37,938  |
| Commercial mortgage-backed securities                    |   |    | -           |    |   | 13,104      |   |   | 1,438  |   |   | 14,542  |
| Foreign government & agency securities               |   |    | -           |    |   | 569         |   |   | -  |   |   | 569  |
| U.S. states and political subdivisions securities        |   |    | -           |    |   | 224         |   |   | -  |   |   | 224  |
| U.S. treasury and agency securities                      |   |    | 382,587     |    |   | -           |   |   | -  |   |   | 382,587  |
| Corporate securities                                     |   |    | -           |    |   | 1,111,037   |   |   | 10,642  |   |   | 1,121,679  |
| Total available-for-sale fixed maturity securities       |   |    | 382,587     |    |   | 1,163,580   |   |   | 12,096  |   |   | 1,558,263  |
|                                                     |   |    |             |    |   |             |   |   |   |   |   |   |
| Trading fixed maturity securities:                       |   |    |             |    |   |             |   |   |   |   |   |   |
| Asset-backed securities                                  |   |    | -           |    |   | 370,668     |   |   | 59,618  |   |   | 430,286  |
| Residential mortgage-backed securities                   |   |    | -           |    |   | 933,986     |   |   | 67,573  |   |   | 1,001,559  |
| Commercial mortgage-backed securities                    |   |    | -           |    |   | 713,442     |   |   | 63,165  |   |   | 776,607  |
| Foreign government & agency securities               |   |    | -           |    |   | 163,607     |   |   | 14,273  |   |   | 177,880  |
| U.S. states and political subdivisions securities        |   |    | -           |    |   | 650         |   |   | -  |   |   | 650  |
| U.S. treasury and agency securities                      |   |    | 707,352     |    |   | 9,419       |   |   | -  |   |   | 716,771  |
| Corporate securities                                     |   |    | -           |    |   | 8,947,213   |   |   | 85,995  |   |   | 9,033,208  |
| Total trading fixed maturity securities                  |   |    | 707,352     |    |   | 11,138,985  |   |   | 290,624  |   |   | 12,136,961  |
|                                                     |   |    |             |    |   |             |   |   |   |   |   |   |
| Derivative instruments - receivable:                     |   |    |             |    |   |             |   |   |   |   |   |   |
| Interest rate contracts                                  |   |    | -           |    |   | 244,647     |   |   | -  |   |   | 244,647  |
| Foreign currency contracts                               |   |    | -           |    |   | 40,891      |   |   | -  |   |   | 40,891  |
| Equity contracts                                         |   |    | 15,945      |    |   | 20,173      |   |   | 5,405  |   |   | 41,523  |
| Futures contracts                                        |   |    | 6,337       |    |   | -           |   |   | -  |   |   | 6,337  |
| Total derivative instruments - receivable                |   |    | 22,282      |    |   | 305,711     |   |   | 5,405  |   |   | 333,398  |
|                                                     |   |    |             |    |   |             |   |   |   |   |   |   |
| Other invested assets                                    |   |    | 1,326       |    |   | -           |   |   | 1,312  |   |   | 2,638  |
| Short-term investments                                   |   |    | 15,043      |    |   | -           |   |   | -  |   |   | 15,043  |
| Cash and cash equivalents                                |   |    | 1,394,677   |    |   | -           |   |   | -  |   |   | 1,394,677  |
| Total investments and cash                               |   |    | 2,523,267   |    |   | 12,608,276  |   |   | 309,437  |   |   | 15,440,980  |
|                                                     |   |    |             |    |   |             |   |   |   |   |   |   |
| Separate account assets:                                 |   |    |             |    |   |             |   |   |   |   |   |   |
| Mutual fund investments                                  |   |    | 20,464,824  |    |   | 30,164      |   |   | -  |   |   | 20,494,988 |
| Equity investments                                       |   |    | 177,697     |    |   | 246         |   |   | 15  |   |   | 177,958  |
| Fixed income investments                                 |   |    | 306,960     |    |   | 5,620,036   |   |   | 175,085  |   |   | 6,102,081  |
| Alternative investments                                  |   |    | 11,822      |    |   | 79,947      |   |   | 271,821  |   |   | 363,590  |
| Other investments                                        |   |    | 5,141       |    |   | -           |   |   | -  |   |   | 5,141  |
| Total separate account assets (1) (2)                    |   |    | 20,966,444  |    |   | 5,730,393   |   |   | 446,921  |   |   | 27,143,758  |
|                                                     |   |    |             |    |   |             |   |   |   |   |   |   |
| Total assets measured at fair value on a recurring basis |   | $       | 23,489,711  |    | $      | 18,338,669  |   | $      | 756,358  |   | $ | 42,584,738  |
|                                                     |   |    |             |    |   |             |   |   |   |   |   |   |

|   | (1) Pursuant to the conditions set forth in FASB ASC Topic 944, the value of separate account liabilities is set to equal the fair value of the separate account assets. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) Excludes $1,785.4 million, primarily related to investment purchases payable, net of investment sales receivable, that are not subject to FASB ASC Topic 820. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                          |   | Level 1 |         | Level 2 |   | Level 3       |   | Total  |
|---------------------------------------------------------------|--------|---------|--------------|---------|--------|---------------|--------|--------|
| Liabilities                                                   |   |    |         |    |   |          |   |   |   |   |   |   |
| Other policy liabilities:                                     |   |    |         |    |   |          |   |   |   |   |   |   |
| Guaranteed minimum withdrawal benefit liability               |   | $       | -       |    | $      | -        |   | $      | 519,708  |   | $ | 519,708  |
| Guaranteed minimum accumulation benefit liability             |   |    | -       |    |   | -        |   |   | 173,597  |   |   | 173,597  |
| Derivatives embedded in reinsurance contracts                 |   |    | -       |    |   | 78,808   |   |   | -  |   |   | 78,808  |
| Fixed index annuities                                         |   |    | -       |    |   | -        |   |   | 128,201  |   |   | 128,201  |
| Total other policy liabilities                                |   |    | -       |    |   | 78,808   |   |   | 821,506  |   |   | 900,314  |
|                                                          |   |    |         |    |   |          |   |   |   |   |   |   |
| Derivative instruments – payable:                       |   |    |         |    |   |          |   |   |   |   |   |   |
| Interest rate contracts                                       |   |    | -       |    |   | 467,340  |   |   | -  |   |   | 467,340  |
| Foreign currency contracts                                    |   |    | -       |    |   | 1,957    |   |   | -  |   |   | 1,957  |
| Credit contracts                                              |   |    | -       |    |   | -        |   |   | 30,633  |   |   | 30,633  |
| Futures contracts                                             |   |    | 950     |    |   | -        |   |   | -  |   |   | 950  |
| Total derivative instruments – payable                  |   |    | 950     |    |   | 469,297  |   |   | 30,633  |   |   | 500,880  |
|                                                          |   |    |         |    |   |          |   |   |   |   |   |   |
| Other liabilities:                                            |   |    |         |    |   |          |   |   |   |   |   |   |
| Bank overdrafts                                               |   |    | 40,061  |    |   | -        |   |   | -  |   |   | 40,061  |
|                                                          |   |    |         |    |   |          |   |   |   |   |   |   |
| Total liabilities measured at fair value on a recurring basis |   | $       | 41,011  |    | $      | 548,105  |   | $      | 852,139  |   | $ | 1,441,255  |
|                                                          |   |    |         |    |   |          |   |   |   |   |   |   |

----

|                                                     |   | Level 1 |       | Level 2 |   | Level 3    |   | Total  |
|----------------------------------------------------------|--------|---------|------------|---------|--------|------------|--------|--------|
| Assets                                                   |   |    |       |    |   |       |   |   |   |   |   |   |
| Available-for-sale fixed maturity securities:            |   |    |       |    |   |       |   |   |   |   |   |   |
| Asset-backed securities                                  |   | $       | -          |    | $      | 952        |   | $      | 37 |   | $ | 989 |
| Residential mortgage-backed securities                   |   |    | -          |    |   | 47,701     |   |   | - |   |   | 47,701 |
| Commercial mortgage-backed securities                    |   |    | -          |    |   | 14,150     |   |   | 1,930 |   |   | 16,080 |
| Foreign government & agency securities               |   |    | -          |    |   | 760        |   |   | - |   |   | 760 |
| U.S. treasury and agency securities                      |   |    | 39,131     |    |   | -          |   |   | - |   |   | 39,131 |
| Corporate securities                                     |   |    | -          |    |   | 1,062,919  |   |   | 7,936 |   |   | 1,070,855 |
| Total available-for-sale fixed maturity securities       |   |    | 39,131     |    |   | 1,126,482  |   |   | 9,903 |   |   | 1,175,516 |
|                                                     |   |    |       |    |   |       |   |   |   |   |   |   |
| Trading fixed maturity securities:                       |   |    |       |    |   |       |   |   |   |   |   |   |
| Asset-backed securities                                  |   |    | -          |    |   | 355,613    |   |   | 111,650 |   |   | 467,263 |
| Residential mortgage-backed securities                   |   |    | -          |    |   | 886,340    |   |   | 154,551 |   |   | 1,040,891 |
| Commercial mortgage-backed securities                    |   |    | -          |    |   | 624,845    |   |   | 14,084 |   |   | 638,929 |
| Foreign government & agency securities               |   |    | -          |    |   | 67,925     |   |   | 15,323 |   |   | 83,248 |
| U.S. treasury and agency securities                      |   |    | 503,123    |    |   | 34,407     |   |   | - |   |   | 537,530 |
| Corporate securities                                     |   |    | -          |    |   | 8,254,775  |   |   | 107,886 |   |   | 8,362,661 |
| Total trading fixed maturity securities                  |   |    | 503,123    |    |   | 10,223,905 |   |   | 403,494 |   |   | 11,130,522 |
|                                                     |   |    |       |    |   |       |   |   |   |   |   |   |
| Derivative instruments - receivable                      |   |    | 14,922     |    |   | 235,484    |   |   | 8,821 |   |   | 259,227 |
| Other invested assets                                    |   |    | 20,242     |    |   | 206        |   |   | - |   |   | 20,448 |
| Short-term investments                                   |   |    | 1,267,311  |    |   | -          |   |   | - |   |   | 1,267,311 |
| Cash and cash equivalents                                |   |    | 1,804,208  |    |   | -          |   |   | - |   |   | 1,804,208 |
| Total investments and cash                               |   |    | 3,648,937  |    |   | 11,586,077 |   |   | 422,218 |   |   | 15,657,232 |
|                                                     |   |    |       |    |   |       |   |   |   |   |   |   |
| Other assets                                             |   |    |       |    |   |       |   |   |   |   |   |   |
| Separate account assets (1) (2)                          |   |    | 18,045,908 |    |   | 5,233,602  |   |   | 547,841 |   |   | 23,827,351 |
|                                                     |   |    |       |    |   |       |   |   |   |   |   |   |
| Total assets measured at fair value on a recurring basis |   | $       | 21,694,845 |    | $      | 16,819,679 |   | $      | 970,059 |   | $ | 39,484,583 |
|                                                     |   |    |       |    |   |       |   |   |   |   |   |   |

|   | (1) Pursuant to the conditions set forth in FASB ASC Topic 944, the value of separate account liabilities is set to equal the fair value of the separate account assets. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)Excludes $501.0 million, primarily related to investment purchases payable, net of investment sales receivable, that are not subject to FASB ASC Topic 820. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                          |   | Level 1 |   | Level 2 |   | Level 3       |   | Total  |
|---------------------------------------------------------------|--------|---------|--------|---------|--------|---------------|--------|--------|
| Liabilities                                                   |   |    |   |    |   |          |   |   |   |   |   |   |
| Other policy liabilities:                                     |   |    |   |    |   |          |   |   |   |   |   |   |
| Guaranteed minimum withdrawal benefit liability               |   | $       | -      |    | $      | -        |   | $      | 168,786 |   | $ | 168,786 |
| Guaranteed minimum accumulation benefit liability             |   |    | -      |    |   | -        |   |   | 81,669 |   |   | 81,669 |
| Derivatives embedded in reinsurance contracts                 |   |    | -      |    |   | 15,035        |   |   | -  |   |   | 15,035 |
| Fixed index annuities                                         |   |    | -      |    |   | -        |   |   | 140,966 |   |   | 140,966 |
| Total other policy liabilities                                |   |    | -      |    |   | 15,035        |   |   | 391,421 |   |   | 406,456 |
|                                                          |   |    |   |    |   |          |   |   |   |   |   |   |
| Derivative instruments – payable                        |   |    | 5,256  |    |   | 533,305  |   |   | 34,349 |   |   | 572,910 |
|                                                          |   |    |   |    |   |          |   |   |   |   |   |   |
| Other liabilities:                                            |   |    |   |    |   |          |   |   |   |   |   |   |
| Bank overdrafts                                               |   |    | 60,037 |    |   | -        |   |   | - |   |   | 60,037 |
|                                                          |   |    |   |    |   |          |   |   |   |   |   |   |
| Total liabilities measured at fair value on a recurring basis |   | $       | 65,293 |    | $      | 548,340  |   | $      | 425,770 |   | $ | 1,039,403 |

|   |   |  Level 1 |    |  Level 2 |   |  Level 3 |   | TotalFair Value |              | Total Gains(Losses) |
|--------|--------|---------------|---------|---------------|--------|---------------|--------|-----------------|-------------------|---------------------|
| Asset  |   |          |    |          |   |          |   |            |              |                |   |   |   |   |   |
| VOCRA  |   | $             | -  |          | $      | -        |   | $               | 5,766   |                | $ | 5,766  |   | $ | (2,600)  |

----

----

----

| Assets                                                                                 | Beginningbalance                                                | Total realized andunrealizedgains (losses)      | Purchases,issuances, andsettlements (net)                                                           | Transfers inand/or (out) oflevel 3 (2)                                                                                                 | Endingbalance                                                                                                                    | Change inunrealized gains (losses)included in earningsrelating to instruments stillheld at the reporting date |
|----------------------------------------------------------------------------------------|-----------------------------------------------------------------|-------------------------------------------------|-----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
| Included inearnings                                                                    | Included inothercomprehensiveincome                             |
|                                                                                   |                                                            |                                            |                                                                                                |                                                                                                                                   |                                                                                                                             |                                                                                                          |   |
| Available-for-sale fixed maturitysecurities:                                           |                                                            |                                            |                                                                                                |                                                                                                                                   |                                                                                                                             |                                                                                                          |   |
| Asset-backed securities                                                                | $         37  | $       (31) | $               10  | $                     -  | $                    -  | $              16                  | $                       -  |
| Residential mortgage-backed securities                                                 | -                                                          | -                                          | -                                                                                              | -                                                                                                                                 | -                                                                                                                           | -                                                                                                        | -  |
| Commercial mortgage-backedsecurities                                                   | 1,930                                                      | (371)                                           | (121)                                                                                               | -                                                                                                                                 | -                                                                                                                           | 1,438                                                                                                    | -  |
| Foreign government & agencysecurities                                              | -                                                          | -                                          | -                                                                                              | -                                                                                                                                 | -                                                                                                                           | -                                                                                                        | -  |
| U.S. states and political subdivisionssecurities                                       | -                                                          | -                                          | -                                                                                              | -                                                                                                                                 | -                                                                                                                           | -                                                                                                        | -  |
| U.S. treasury and agency securities                                                    | -                                                          | -                                          | -                                                                                              | -                                                                                                                                 | -                                                                                                                           | -                                                                                                        | -  |
| Corporate securities                                                                   | 7,936                                                      | (17)                                            | 1,217                                                                                          | 1,940                                                                                                                             | (434)                                                                                                                            | 10,642                                                                                                   | -  |
| Total available-for-sale fixed maturity       securities | 9,903                                                      | (419)                                           | 1,106                                                                                          | 1,940                                                                                                                             | (434)                                                                                                                            | 12,096                                                                                                   | -  |
|                                                                                   |                                                            |                                            |                                                                                                |                                                                                                                                   |                                                                                                                             |                                                                                                          |   |
| Trading fixed maturity securities:                                                     |                                                            |                                            |                                                                                                |                                                                                                                                   |                                                                                                                             |                                                                                                          |   |
| Asset-backed securities                                                                | 111,650                                                    | 15,020                                     | -                                                                                              | (36,320)                                                                                                                               | (30,732)                                                                                                                         | 59,618                                                                                                   | 17,186  |
| Residential mortgage-backed securities                                                 | 154,551                                                    | 3,739                                      | -                                                                                              | (9,211)                                                                                                                                | (81,506)                                                                                                                         | 67,573                                                                                                   | 9,017  |
| Commercial mortgage-backed    securities                                | 14,084                                                     | 2,175                                      | -                                                                                              | 47,602                                                                                                                            | (696)                                                                                                                            | 63,165                                                                                                   | 3,439  |
| Foreign government & agency    securities                           | 15,323                                                     | (1,050)                                         | -                                                                                              | -                                                                                                                                 | -                                                                                                                           | 14,273                                                                                                   | 140  |
| U.S. states and political subdivisions    securities                    | -                                                          | -                                          | -                                                                                              | -                                                                                                                                 | -                                                                                                                           | -                                                                                                        | -  |
| U.S. treasury and agency securities                                                    | -                                                          | -                                          | -                                                                                              | -                                                                                                                                 | -                                                                                                                           | -                                                                                                        | -  |
| Corporate securities                                                                   | 107,886                                                    | 5,716                                      | -                                                                                              | (6,243)                                                                                                                                | (21,364)                                                                                                                         | 85,995                                                                                                   | 5,565  |
| Total trading fixed maturity securities                                                | 403,494                                                    | 25,600                                     | -                                                                                              | (4,172)                                                                                                                                | (134,298)                                                                                                                        | 290,624                                                                                                  | 35,347  |
|                                                                                   |                                                            |                                            |                                                                                                |                                                                                                                                   |                                                                                                                             |                                                                                                          |   |
| Derivative instruments – receivable:                                             |                                                            |                                            |                                                                                                |                                                                                                                                   |                                                                                                                             |                                                                                                          |   |
| Interest rate contracts                                                                | -                                                          | -                                          | -                                                                                              | -                                                                                                                                 | -                                                                                                                           | -                                                                                                        | -  |
| Foreign currency contracts                                                             | -                                                          | -                                          | -                                                                                              | -                                                                                                                                 | -                                                                                                                           | -                                                                                                        | -  |
| Equity contracts                                                                       | 8,821                                                      | (1,509)                                         | -                                                                                              | (1,907)                                                                                                                                | -                                                                                                                           | 5,405                                                                                                    | (1,509) |
| Futures contracts                                                                      | -                                                          | -                                          | -                                                                                              | -                                                                                                                                 | -                                                                                                                           | -                                                                                                        | -  |
| Total derivative instruments– receivable                                         | 8,821                                                      | (1,509)                                         | -                                                                                              | (1,907)                                                                                                                                | -                                                                                                                           | 5,405                                                                                                    | (1,509) |
|                                                                                   |                                                            |                                            |                                                                                                |                                                                                                                                   |                                                                                                                             |                                                                                                          |   |
| Other invested assets                                                                  | -                                                          | (174)                                           | -                                                                                              | 1,486                                                                                                                             | -                                                                                                                           | 1,312                                                                                                    | (174) |
| Short-term investments                                                                 | -                                                          | -                                          | -                                                                                              | -                                                                                                                                 | -                                                                                                                           | -                                                                                                        | -  |
| Cash and cash equivalents                                                              | -                                                          | -                                          | -                                                                                              | -                                                                                                                                 | -                                                                                                                           | -                                                                                                        | -  |
| Total investments and cash                                                             | 422,218                                                    | 23,498                                     | 1,106                                                                                          | (2,653)                                                                                                                                | (134,732)                                                                                                                        | 309,437                                                                                                  | 33,664  |
|                                                                                   |                                                            |                                            |                                                                                                |                                                                                                                                   |                                                                                                                             |                                                                                                          |   |
| Separate account assets:                                                               |                                                            |                                            |                                                                                                |                                                                                                                                   |                                                                                                                             |                                                                                                          |   |
| Mutual fund investments                                                                | -                                                               | -                                          | -                                                                                              | -                                                                                                                                 | -                                                                                                                           | -                                                                                                        | -  |
| Equity investments                                                                     | 7                                                               | 8                                          | -                                                                                              | -                                                                                                                                 | -                                                                                                                           | 15                                                                                                       | 8  |
| Fixed income investments                                                               | 276,530                                                         | 6,240                                      | -                                                                                              | (9,135)                                                                                                                                | (98,550)                                                                                                                         | 175,085                                                                                                  | 2,560  |
| Alternative investments                                                                | 267,196                                                         | (565)                                           | -                                                                                              | 21,824                                                                                                                            | (16,634)                                                                                                                         | 271,821                                                                                                  | (1,270) |
| Other investments                                                                      | 4,108                                                           | -                                          | -                                                                                              | -                                                                                                                                 | (4,108)                                                                                                                          | -                                                                                                        | -  |
| Total separate account assets (1)                                                      | 547,841                                                         | 5,683                                      | -                                                                                              | 12,689                                                                                                                            | (119,292)                                                                                                                        | 446,921                                                                                                  | 1,298  |
|                                                                                   |                                                            |                                            |                                                                                                |                                                                                                                                   |                                                                                                                             |                                                                                                          |   |
| Total assets measured at fair value on     a recurring basis  | $970,059                                                   | $    29,181            | $         1,106                                   | $           10,036                                                         | $      (254,024)                                                                                   | $       756,358                                                       | $             34,962  |

|   | (1) The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities which results in a net zero impact on net income for the Company. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) Transfers in and/or (out) of Level 3 during the nine-month period ended September 30, 2010 are primarily attributable to changes in the observability of inputs used to price the securities. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Liabilities                                                   | Beginningbalance                    | Total realized and unrealized(gains) losses                    |  Purchases,issuances, andsettlements (net)                                                                            | Transfers inand/or (out) oflevel 3                                                                 | Endingbalance                                                                                                        | Change in unrealized(gains) losses included inearnings relating toinstruments still held at thereporting date |
|---------------------------------------------------------------|-------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
| Includedin earnings                                           | Included inothercomprehensiveincome |
|                                                          |                                |                                                           |                                                                                                                       |                                                                                               |                                                                                                                 |                                                                                                          |   |
| Other policy liabilities:                                     |                                |                                                           |                                                                                                                       |                                                                                               |                                                                                                                 |                                                                                                          |   |
| Guaranteed minimum withdrawal benefit   liability   | $168,786                       | $   245,325       | $               -                          | $         105,597       | $               -                    | $ 519,708                                                                                 | $     249,721  |
| Guaranteed minimum accumulation   benefit liability | 81,669                    | 74,640                           | -                                                                                                                     | 17,288                                                               | -                                                                                                               | 173,597                                                                                   | 76,218  |
| Derivatives embedded in reinsurance   contracts     | -                         | -                                                    | -                                                                                                                     | -                                                                                        | -                                                                                                               | -                                                                                                   | -  |
| Fixed index annuities                                         | 140,966                   | (17,026)                              | -                                                                                                                     | 4,261                                                                | -                                                                                                               | 128,201                                                                                   | 10,886  |
| Total other policy liabilities                                | 391,421                        | 302,939                          | -                                                                                                                     | 127,146                                                              | -                                                                                                               | 821,506                                                                                   | 336,825  |
|                                                          |                                |                                                           |                                                                                                                       |                                                                                               |                                                                                                                 |                                                                                                          |   |
| Derivative instruments – payable:                       |                                |                                                           |                                                                                                                       |                                                                                               |                                                                                                                 |                                                                                                          |   |
| Interest rate contracts                                       | -                              | -                                                         | -                                                                                                                     | -                                                                                             | -                                                                                                               | -                                                                                                        | -   |
| Foreign currency contracts                                    | -                              | -                                                         | -                                                                                                                     | -                                                                                             | -                                                                                                               | -                                                                                                        | -   |
| Credit contracts                                              | 34,349                         | (3,716)                          | -                                                                                                                     | -                                                                                             | -                                                                                                               | 30,633                                                                               | (3,716)  |
| Futures contracts                                             | -                              | -                                                         | -                                                                                                                     | -                                                                                             | -                                                                                                               | -                                                                                                   | -  |
| Total derivative instruments – payable             | 34,349                         | (3,716)                                                        | -                                                                                                                     | -                                                                                             | -                                                                                                               | 30,633                                                                               | (3,716)  |
|                                                          |                                |                                                           |                                                                                                                       |                                                                                               |                                                                                                                 |                                                                                                          |   |
|                                                          |                                |                                                           |                                                                                                                       |                                                                                               |                                                                                                                 |                                                                                                          |   |
| Other liabilities:                                            |                                |                                                           |                                                                                                                       |                                                                                               |                                                                                                                 |                                                                                                          |   |
| Bank overdrafts                                               | -                              |                                                           | -                                                                                                                     | -                                                                                             | -                                                                                                               | -                                                                                                        | -  |
|                                                          |                                |                                                           |                                                                                                                       |                                                                                               |                                                                                                                 |                                                                                                          |   |
| Total liabilities measured at fair value on arecurring basis  | $425,770                       | $   299,223            | $               -      | $         127,146                 | $               -     | $ 852,139                                                                            | $     333,109  |

|                                                                                                     |   | Total gains (losses)included in earnings |   | Change inunrealized gains(losses) related toassets and liabilitiesstill held  at thereporting date |
|----------------------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|
| Net investment income                                                                                    | $      | 25,426                              | $      | 35,173                                                                                                  |
| Net derivative loss                                                                                      |   | (300,732)                                |   | (334,618)                                                                                                    |
| Net realized investment losses, excluding impairment   losses on available-for-sale securities |   | (419)                                    |   | -                                                                                                       |
| Net losses                                                                                               | $      | (275,725)                                | $      | (299,445)                                                                                                    |

----

| Assets                                                  | Beginningbalance                                                                       | Total realized and unrealizedgains (losses)                       | Purchases,issuances, andsettlements (net)                                                           | Transfers inand/or (out)of level 3 (2)                                                             | Endingbalance                                                                           | Change inunrealized gains(losses) included inearnings relatingto instruments stillheld at thereporting date |
|---------------------------------------------------------|----------------------------------------------------------------------------------------|-------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|
| Includedin earnings                                     | Included inothercomprehensiveincome                                                    |
| Available-for-sale fixed maturitysecurities:            |                                                                                   |                                                              |                                                                                                |                                                                                               |                                                                                    |                                                                                                        |   |
| Asset-backed securities                                 | $              - | $          (41) | $               11  | $               -  | $              76 | $          46                                             | $               - |
| Collateralized mortgageobligations                      | 3,046                                                                                  | -                                                            | -                                                                                              | -                                                                                             | (3,046)                                                                                 | -                                                                                                           | - |
| Commercial mortgage-backedsecurities                    | 1,420                                                                                  | (265)                                                             | (881)                                                                                               | -                                                                                             | 1,627                                                                                   | 1,901                                                                                                       | - |
| Foreign government & agencysecurities               | -                                                                                      | -                                                            | -                                                                                              | -                                                                                             | -                                                                                       | -                                                                                                           | - |
| U.S. states and politicalsubdivisions securities        | -                                                                                      | -                                                            | -                                                                                              | -                                                                                             | -                                                                                       | -                                                                                                           | - |
| U.S. treasury and agencysecurities                      | -                                                                                      | -                                                            | -                                                                                              | -                                                                                             | -                                                                                       | -                                                                                                           | - |
| Corporate securities                                    | 7,888                                                                                  | 17                                                           | 1,719                                                                                          | (207)                                                                                         | (1,277)                                                                                 | 8,140                                                                                                       | - |
| Total available-for-sale fixed maturitysecurities       | 12,354                                                                                 | (289)                                                             | 849                                                                                            | (207)                                                                                         | (2,620)                                                                                 | 10,087                                                                                                      | - |
|                                                    |                                                                                   |                                                              |                                                                                                |                                                                                               |                                                                                    |                                                                                                        |   |
| Trading fixed maturity securities:                      |                                                                                   |                                                              |                                                                                                |                                                                                               |                                                                                    |                                                                                                        |   |
| Asset-backed securities                                 | 145,267                                                                                | 32,497                                                       | -                                                                                              | (197)                                                                                         | (51,226)                                                                                | 126,341                                                                                                | 65,755  |
| Collateralized mortgageobligations                      | 116,572                                                                                | (6,009)                                                           | -                                                                                              | (4,414)                                                                                       | 63,895                                                                             | 170,044                                                                                                | 58,548  |
| Commercial mortgage - backedsecurities                  | 200,414                                                                                | 45,631                                                       | -                                                                                              | (254)                                                                                         | 15,435                                                                             | 261,226                                                                                                | 129,428  |
| Foreign government & agencysecurities               | 9,200                                                                                  | 170                                                          | -                                                                                              | -                                                                                             | 6,160                                                                              | 15,530                                                                                                 | 1,296  |
| U.S. states and politicalsubdivisions securities        | -                                                                                      | -                                                            | -                                                                                              | -                                                                                             | -                                                                                  | -                                                                                                      | -  |
| U.S. treasury and agency securities                     | -                                                                                      | -                                                            | -                                                                                              | -                                                                                             | -                                                                                  | -                                                                                                      | -  |
| Corporate securities                                    | 134,505                                                                                | 25,165                                                       | -                                                                                         | 1,125                                                                                    | (34,716)                                                                                | 126,079                                                                                                | 24,612  |
| Total trading fixed maturity securities                 | 605,958                                                                                | 97,454                                                       | -                                                                                              | (3,740)                                                                                       | (452)                                                                                   | 699,220                                                                                                | 279,639  |
|                                                    |                                                                                   |                                                              |                                                                                                |                                                                                               |                                                                                    |                                                                                                        |   |
| Derivative instruments – receivable               | 2,668                                                                             | 375                                                          | -                                                                                              | 2,323                                                                                         | -                                                                                  | 5,366                                                                                                  | 2,312  |
| Other invested assets                                   | -                                                                                 | -                                                            | -                                                                                              | -                                                                                             | -                                                                                  | -                                                                                                      | -  |
| Cash and cash equivalents                               | -                                                                                 | -                                                            | -                                                                                              | -                                                                                             | -                                                                                  | -                                                                                                      | -  |
| Total investments and cash                              | 620,980                                                                           | 97,540                                                       | 849                                                                                            | (1,624)                                                                                       | (3,072)                                                                                 | 714,673                                                                                                     | 281,951  |
|                                                    |                                                                                   |                                                              |                                                                                                |                                                                                               |                                                                                    |                                                                                                        |   |
| Other assets                                            |                                                                                   |                                                              |                                                                                                |                                                                                               |                                                                                    |                                                                                                        |   |
| Separate account assets (1)                             | 801,873                                                                           | 28,392                                                       | -                                                                                              | (83,632)                                                                                      | (103,697)                                                                               | 642,936                                                                                                | 127,542  |
|                                                    |                                                                                   |                                                              |                                                                                                |                                                                                               |                                                                                    |                                                                                                        |   |
| Total assets measured at fair value on arecurring basis | $1,422,853                                                                        | $   125,932                                   | $             849             | $     (85,256)                                                       | $    (106,769)                                                      | $1,357,609                                                                                                  | $       409,493  |

|   | (1)The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities which results in a net zero impact on net income for the Company. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) Transfers in and/or (out) of Level 3 during the nine-month period ended September 30, 2009 are primarily attributable to changes in the observability of inputs used to price the securities. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Liabilities                                                                                      | Beginningbalance                    | Total realized and unrealized(gains) losses | Purchases,issuances, andsettlements (net)                                              | Transfers inand/or (out)of level 3    | Endingbalance                                      | Change inunrealized (gains)losses included inearnings relating toinstruments stillheld at thereporting date |
|--------------------------------------------------------------------------------------------------|-------------------------------------|---------------------------------------------|----------------------------------------------------------------------------------------|---------------------------------------|----------------------------------------------------|-------------------------------------------------------------------------------------------------------------|
| Includedin earnings                                                                              | Included inothercomprehensiveincome |
|                                                                                             |                                |                                        |                                                                                   |                                  |                                               |                                                                                                        |   |
| Other policy liabilities:                                                                        |                                |                                        |                                                                                   |                                  |                                               |                                                                                                        |   |
|   Guaranteed minimum withdrawal     benefit liability         | $   335,612     | $   (60,464)                 | $             -  | $    48,260  | $       -  | $ 323,408                                                                                                   | $    (49,589) |
|    Guaranteed minimum accumulation     benefit liability | 358,604                        | (193,195)                                   | -                                                                                 | 15,855                           | -                                             | 181,264                                                                                                     | (185,607) |
|   Derivatives embedded in reinsurance     contracts                | -                              | -                                      | -                                                                                 | -                                | -                                             | -                                                                                                           | -  |
|    Fixed index annuities                                                          | 106,619                        | 10,028                                 | -                                                                                 | 14,602                           | -                                             | 131,249                                                                                                     | 13,626  |
| Total other policy liabilities                                                                   | 800,835                        | (243,631)                                   | -                                                                                 | 78,717                           | -                                             | 635,921                                                                                                     | (221,570) |
|                                                                                             |                                |                                        |                                                                                   |                                  |                                               |                                                                                                        |   |
| Derivative instruments – payable                                                           | 42,066                         | 5,864                                  | -                                                                                 | -                                | -                                             | 47,930                                                                                                      | 5,864  |
|                                                                                             |                                |                                        |                                                                                   |                                  |                                               |                                                                                                        |   |
| Total liabilities measured at fair value on    a recurring basis             | $   842,901     | $ (237,767)                                 | $             -  | $     78,717 | $       -  | $ 683,851                                                                                                   | $  (215,706) |

|                                                                                        |   | Total gains(losses) includedin earnings |   | Change in unrealizedgains (losses) related toassets and liabilitiesstill held at thereporting date |
|---------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|----------------------------------------------------------------------------------------------------|
| Net investment income                                                                       | $      | 97,454                             | $      | 279,639                                                                                       |
| Net derivative income                                                                       |   | 238,142                            |   | 218,018                                                                                       |
| Net realized investment losses, excludingimpairment losses on available-for-sale securities |   | (289)                                   |   | -                                                                                             |
| Net gains                                                                                   | $      | 335,307                            | $      | 497,657                                                                                       |

----

| Assets                                                       | Beginningbalance                                          | Total realized andunrealizedgains (losses)                                             | Purchases,issuances, andsettlements (net)                                                      | Transfers inand/or (out) oflevel 3                                                                                                           | Endingbalance                                                                                                        | Change in total gains(losses) included in earningsrelating to instruments stillheld at the reporting date |
|--------------------------------------------------------------|-----------------------------------------------------------|----------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|
| Included inearnings                                          | Included inothercomprehensiveincome                       |
|                                                         |                                                      |                                                                                   |                                                                                           |                                                                                                                                         |                                                                                                                 |                                                                                                      |   |
| Available-for-sale fixed maturitysecurities:                 |                                                      |                                                                                   |                                                                                           |                                                                                                                                         |                                                                                                                 |                                                                                                      |   |
| Asset-backed securities                                      | $        22  | $             -  | $               (6) | $                      -  | $                  -  | $               16        | $                      -  |
| Residential mortgage-backed securities                       | -                                                    | -                                                                                 | -                                                                                         | -                                                                                                                                       | -                                                                                                               | -                                                                                                    | -  |
| Commercial mortgage-backedsecurities                         | 1,371                                                | -                                                                                 | 67                                                                                        | -                                                                                                                                       | -                                                                                                               | 1,438                                                                                                | -  |
| Foreign government & agencysecurities                    | -                                                    | -                                                                                 | -                                                                                         | -                                                                                                                                       | -                                                                                                               | -                                                                                                    | -  |
| U.S. states and political subdivisionssecurities             | -                                                    | -                                                                                 | -                                                                                         | -                                                                                                                                       | -                                                                                                               | -                                                                                                    | -  |
| U.S. treasury and agency securities                          | -                                                    | -                                                                                 | -                                                                                         | -                                                                                                                                       | -                                                                                                               | -                                                                                                    | -  |
| Corporate securities                                         | 678                                                  | (1,998)                                                                                | 3,169                                                                                     | 1,998                                                                                                                                   | 6,795                                                                                                           | 10,642                                                                                               | -  |
| Total available-for-sale fixed maturitysecurities            | 2,071                                                | (1,998)                                                                                | 3,230                                                                                     | 1,998                                                                                                                                   | 6,795                                                                                                           | 12,096                                                                                               | -  |
|                                                         |                                                      |                                                                                   |                                                                                           |                                                                                                                                         |                                                                                                                 |                                                                                                      |   |
| Trading fixed maturity securities:                           |                                                      |                                                                                   |                                                                                           |                                                                                                                                         |                                                                                                                 |                                                                                                      |   |
| Asset-backed securities                                      | 47,668                                               | 7,533                                                                             | -                                                                                         | (746)                                                                                                                                        | 5,163                                                                                                           | 59,618                                                                                               | 6,787  |
| Residential mortgage-backed securities                       | 98,323                                               | 1,540                                                                             | -                                                                                         | (3,897)                                                                                                                                      | (28,393)                                                                                                             | 67,573                                                                                               | (2,358) |
| Commercial mortgage-backedsecurities                         | 62,793                                               | 1,376                                                                             | -                                                                                         | (1,004)                                                                                                                                      | -                                                                                                               | 63,165                                                                                               | 372  |
| Foreign government & agencysecurities                    | 14,638                                               | (365)                                                                                  | -                                                                                         | -                                                                                                                                       | -                                                                                                               | 14,273                                                                                               | (365) |
| U.S. states and political subdivisionssecurities             | -                                                    | -                                                                                 | -                                                                                         | -                                                                                                                                       | -                                                                                                               | -                                                                                                    | -  |
| U.S. treasury and agency securities                          | -                                                    | -                                                                                 | -                                                                                         | -                                                                                                                                       | -                                                                                                               | -                                                                                                    | -  |
| Corporate securities                                         | 48,551                                               | 2,204                                                                             | -                                                                                         | 1,808                                                                                                                                   | 33,432                                                                                                          | 85,995                                                                                               | 4,012  |
| Total trading fixed maturity securities                      | 271,973                                              | 12,288                                                                            | -                                                                                         | (3,839)                                                                                                                                      | 10,202                                                                                                          | 290,624                                                                                              | 8,448  |
|                                                         |                                                      |                                                                                   |                                                                                           |                                                                                                                                         |                                                                                                                 |                                                                                                      |   |
| Derivative instruments – receivable:                   |                                                      |                                                                                   |                                                                                           |                                                                                                                                         |                                                                                                                 |                                                                                                      |   |
| Interest rate contracts                                      | -                                                    | -                                                                                 | -                                                                                         | -                                                                                                                                       | -                                                                                                               | -                                                                                                    | -  |
| Foreign currency contracts                                   | -                                                    | -                                                                                 | -                                                                                         | -                                                                                                                                       | -                                                                                                               | -                                                                                                    | -  |
| Equity contracts                                             | 1,723                                                | 887                                                                               | -                                                                                         | 2,795                                                                                                                                   | -                                                                                                               | 5,405                                                                                                | 887  |
| Futures contracts                                            | -                                                    | -                                                                                 | -                                                                                         | -                                                                                                                                       | -                                                                                                               | -                                                                                                    | -  |
| Total derivative instruments– receivable               | 1,723                                                | 887                                                                               | -                                                                                         | 2,795                                                                                                                                   | -                                                                                                               | 5,405                                                                                                | 887  |
|                                                         |                                                      |                                                                                   |                                                                                           |                                                                                                                                         |                                                                                                                 |                                                                                                      |   |
| Other invested assets                                        | 1,614                                                | (302)                                                                                  | -                                                                                         | -                                                                                                                                       | -                                                                                                               | 1,312                                                                                                | (302) |
| Short-term investments                                       | -                                                    | -                                                                                 | -                                                                                         | -                                                                                                                                       | -                                                                                                               | -                                                                                                    | -  |
| Cash and cash equivalents                                    | -                                                    | -                                                                                 | -                                                                                         | -                                                                                                                                       | -                                                                                                               | -                                                                                                    | -  |
| Total investments and cash                                   | 277,381                                              | 10,875                                                                            | 3,230                                                                                     | 954                                                                                                                                     | 16,997                                                                                                          | 309,437                                                                                              | 9,033  |
|                                                         |                                                      |                                                                                   |                                                                                           |                                                                                                                                         |                                                                                                                 |                                                                                                      |   |
| Separate account assets:                                     |                                                      |                                                                                   |                                                                                           |                                                                                                                                         |                                                                                                                 |                                                                                                      |   |
| Mutual fund investments                                      | -                                                    | -                                                                                 | -                                                                                         | -                                                                                                                                       | -                                                                                                               | -                                                                                                    | -  |
| Equity investments                                           | 197                                                  | (182)                                                                                  | -                                                                                         | -                                                                                                                                       | -                                                                                                               | 15                                                                                                   | (182) |
| Fixed income investments                                     | 92,963                                               | 2,020                                                                             | -                                                                                         | 83,648                                                                                                                                  | (3,546)                                                                                                              | 175,085                                                                                              | 1,160  |
| Alternative investments                                      | 269,757                                              | 1,913                                                                             | -                                                                                         | 9,738                                                                                                                                   | (9,587)                                                                                                              | 271,821                                                                                              | 1,662  |
| Other investments                                            | -                                                    | -                                                                                 | -                                                                                         | -                                                                                                                                       | -                                                                                                               | -                                                                                                    | -  |
| Total separate account assets (1)                            | 362,917                                              | 3,751                                                                             | -                                                                                         | 93,386                                                                                                                                  | (13,133)                                                                                                             | 446,921                                                                                              | 2,640  |
|                                                         |                                                      |                                                                                   |                                                                                           |                                                                                                                                         |                                                                                                                 |                                                                                                      |   |
| Total assets measured at fair value ona recurring basis | $640,298                                             | $    14,626                                                   | $        3,230                                    | $              94,340                                             | $         3,864                                                    | $     756,358                                                               | $                 12,277  |

| (1)   | The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities which results in a net zero impact on net income for the Company. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Liabilities                                                                                 | Beginningbalance                     | Total realized and unrealized(gains) losses | Purchases,issuances, andsettlements (net)                                                                | Transfers inand/or (out) oflevel 3                      | Endingbalance                                                                                            | Change in unrealized(gains) losses included inearnings relating toinstruments still held atthe reporting date |
|---------------------------------------------------------------------------------------------|--------------------------------------|---------------------------------------------|----------------------------------------------------------------------------------------------------------|---------------------------------------------------------|----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
| Includedinearnings                                                                          | Included inothercomprehensive income |
|                                                                                        |                                 |                                        |                                                                                                     |                                                    |                                                                                                     |                                                                                                          |   |
| Other policy liabilities:                                                                   |                                 |                                        |                                                                                                     |                                                    |                                                                                                     |                                                                                                          |   |
|   Guaranteed minimum withdrawal benefit     liability    | $ 618,029                       | $(140,238)                             | $               -        | $     41,917    | $               -        | $ 519,708                                                                                                | $     (137,957)   |
|   Guaranteed minimum accumulation     benefit liability  | 231,911                         | (64,087)                          | -                                                                                                   | 5,773                                    | -                                                                                                   | 173,597                                                                                                  | (63,318)   |
|   Derivatives embedded in reinsurance     contracts      | -                               | -                            | -                                                                                                   | -                                        | -                                                                                                   | -                                                                                                   | -     |
|   Fixed index annuities                                                           | 118,287                         | 10,100                       | -                                                                                                   | (186)                                              | -                                                                                                   | 128,201                                                                                                  | 18,052    |
| Total other policy liabilities                                                              | 968,227                         | (194,225)                         |                                                                                                     | 47,504                                        | -                                                                                                   | 821,506                                                                                                  | (183,223)   |
|                                                                                        |                                 |                                        |                                                                                                     |                                                    |                                                                                                     |                                                                                                          |   |
| Derivative instruments – payable:                                                     |                            |                                        |                                                                                                     |                                                    |                                                                                                     |                                                                                                          |   |
|   Interest rate contracts                                                         | -                               | -                                      | -                                                                                                   | -                                                  | -                                                                                                   | -                                                                                                        | -    |
|   Foreign currency contracts                                                      | -                               | -                                      | -                                                                                                   | -                                                  | -                                                                                                   | -                                                                                                        | -   |
|   Credit contracts                                                                | 33,726                          | (3,093)                           | -                                                                                                   | -                                                  | -                                                                                                   | 30,633                                                                                              | (3,093)   |
|   Futures contracts                                                               | -                               | -                                      | -                                                                                                   | -                                                  | -                                                                                                   | -                                                                                                   | -   |
|   Total derivative instruments – payable                               | 33,726                          | (3,093)                           | -                                                                                                   | -                                                  | -                                                                                                   | 30,633                                                                                              | (3,093)   |
|                                                                                        |                                 |                                        |                                                                                                     |                                                    |                                                                                                     |                                                                                                          |   |
|                                                                                        |                                 |                                        |                                                                                                     |                                                    |                                                                                                     |                                                                                                          |   |
| Other liabilities:                                                                          |                                 |                                        |                                                                                                     |                                                    |                                                                                                     |                                                                                                          |   |
| Bank overdrafts                                                                             | -                               | -                                 | -                                                                                                   | -                                                  | -                                                                                                   | -                                                                                                        | -   |
|                                                                                        |                                 |                                        |                                                                                                     |                                                    |                                                                                                     |                                                                                                          |   |
| Total liabilities measured at fair value on a      recurring basis | $1,001,953                           | $(197,318)                        | $               -   | $     47,504         | $               -   | $ 852,139                                                                                           | $     (186,316)   |

|                                                                                                           |   | Total gains (losses)included in earnings |   | Change inunrealized gains(losses) related toassets and liabilitiesstill held  at thereporting date |
|----------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|
| Net investment income                                                                                          | $      | 11,986                              | $      | 8,146                                                                                                   |
| Net derivative income                                                                                          |   | 198,205                             |   | 187,203                                                                                                 |
| Net realized investment losses, excluding impairment    losses on available-for-sale securities |   | (1,998)                                  |   | -                                                                                                       |
| Net gains                                                                                                      | $      | 208,193                             | $      | 195,349                                                                                                 |

----

| Assets                                                  | Beginningbalance                                                                 | Total realized and unrealizedgains (losses) | Purchases,issuances, andsettlements (net) | Transfers inand/or (out)of level 3 (2)        | Endingbalance                           | Change inunrealized gains(losses) included inearnings relatingto instruments stillheld at thereporting date |
|---------------------------------------------------------|----------------------------------------------------------------------------------|---------------------------------------------|-------------------------------------------|-----------------------------------------------|-----------------------------------------|-------------------------------------------------------------------------------------------------------------|
| Includedin earnings                                     | Included inothercomprehensiveincome                                              |
| Available-for-sale fixed maturitysecurities:            |                                                                             |                                        |                                      |                                          |                                    |                                                                                                        |   |
| Asset-backed securities                                 | $            -  | $     (13)         | $     4     | $     -         | $     55  | $     46                                                                      | $     -  |
| Collateralized mortgageobligations                      | 2,643                                                                       | -                                      | -                                    | -                                        | (2,643)                                 | -                                                                                                      | -  |
| Commercial mortgage-backedsecurities                    | 55                                                                          | (308)                                       | (434)                                     | -                                        | 2,588                              | 1,901                                                                                                  | -  |
| Foreign government & agencysecurities               | -                                                                           | -                                      | -                                    | -                                        | -                                  | -                                                                                                      | -  |
| U.S. states and politicalsubdivisions securities        | -                                                                           | -                                      | -                                    | -                                        | -                                  | -                                                                                                      | -  |
| U.S. treasury and agencysecurities                      | -                                                                           | -                                      | -                                    | -                                        | -                                  | -                                                                                                      | -  |
| Corporate securities                                    | 10,025                                                                      | 120                                    | 1,425                                | (207)                                    | (3,223)                                 | 8,140                                                                                                  | -  |
| Total available-for-sale fixed maturitysecurities       | 12,723                                                                      | (201)                                       | 995                                  | (207)                                         | (3,223)                                 | 10,087                                                                                                 | -  |
|                                                    |                                                                             |                                        |                                      |                                          |                                    |                                                                                                        |   |
| Trading fixed maturity securities:                      |                                                                             |                                        |                                      |                                          |                                    |                                                                                                        |   |
| Asset-backed and mortgage-backed  securities  | 149,165                                                                     | 13,964                                 | -                                    | (256)                                    | (36,532)                                | 126,341                                                                                                | 34,206  |
| Collateralized mortgageobligations                      | 140,533                                                                     | 8,663                                  | -                                    | (4,415)                                  | 25,263                             | 170,044                                                                                                | 45,930  |
| Commercial mortgage-backedsecurities                    | 205,597                                                                     | 40,625                                 | -                                    | (254)                                    | 15,258                             | 261,226                                                                                                | 61,909  |
| Foreign government & agencysecurities               | 9,400                                                                       | 167                                    | -                                    | -                                        | 5,963                              | 15,530                                                                                                 | 548  |
| U.S. states and politicalsubdivisions securities        | -                                                                           | -                                      | -                                    | -                                        | -                                  | -                                                                                                      | -  |
| U.S. treasury and agency securities                     | -                                                                           | -                                      | -                                    | -                                        | -                                  | -                                                                                                      | -  |
| Corporate securities                                    | 117,385                                                                     | 16,625                                      | -                                    | 1,184                                    | (9,115)                                 | 126,079                                                                                                     | 10,318  |
| Total trading fixed maturity securities                 | 622,080                                                                     | 80,044                                      | -                                    | (3,741)                                  | 837                                | 699,220                                                                                                     | 152,911  |
|                                                    |                                                                             |                                        |                                      |                                          |                                    |                                                                                                        |   |
| Derivative instruments – receivable               | 3,099                                                                       | 680                                    | -                                    | 1,587                               | -                                  | 5,366                                                                                                  | 1,962  |
| Other invested assets                                   | -                                                                           | -                                      | -                                    | -                                        | -                                  | -                                                                                                      | -  |
| Cash and cash equivalents                               | -                                                                           | -                                      | -                                    | -                                        | -                                  | -                                                                                                      | -  |
| Total investments and cash                              | 637,902                                                                     | 80,523                                 | 995                                  | (2,361)                                  | (2,386)                                 | 714,673                                                                                                | 154,873  |
|                                                    |                                                                             |                                        |                                      |                                          |                                    |                                                                                                        |   |
| Other assets                                            |                                                                             |                                        |                                      |                                          |                                    |                                                                                                        |   |
| Separate account assets (1)                             | 720,926                                                                     | 147                                    | -                                    | (62,387)                                 | (15,750)                      | 642,936                                                                                                | 2,535  |
|                                                    |                                                                             |                                        |                                      |                                          |                                    |                                                                                                        |   |
| Total assets measured at fair value on arecurring basis | $1,358,828                                                                  | $ 80,670                               | $     995   | $     (64,748)  | $  (18,136)                   | $1,357,609                                                                                                  | $      157,408  |

|   | (1)The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities which results in a net zero impact on net income for the Company. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)  Transfers in and/or (out) of Level 3 during the three-month period ended September 30, 2009 are primarily attributable to changes in the observability of inputs used to price the securities. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Liabilities                                                                          | Beginningbalance                    | Total realized and unrealized(gains) losses | Purchases,issuances, andsettlements (net)                | Transfers inand/or (out)of level 3 | Endingbalance                                            | Change inunrealized (gains)losses included inearnings relating toinstruments stillheld at thereporting date |
|--------------------------------------------------------------------------------------|-------------------------------------|---------------------------------------------|----------------------------------------------------------|------------------------------------|----------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|
| Includedin earnings                                                                  | Included inothercomprehensiveincome |
|                                                                                 |                                |                                        |                                                     |                               |                                                     |                                                                                                        |   |
| Other policy liabilities:                                                            |                                |                                        |                                                     |                               |                                                     |                                                                                                        |   |
| Guaranteed minimum withdrawal  benefit liability                                | $  280,489                | $  21,784                    | $        -  | $   21,135     | $        -  | $ 323,408                                                                                                   | $    25,327  |
| Guaranteed minimum accumulation  benefit liability                              | 197,789                        | (22,488)                                    | -                                                   | 5,963                         | -                                                   | 181,264                                                                                                     | (20,539) |
| Derivatives embedded in reinsurance  contracts                                  | -                              | -                                      | -                                                   | -                             | -                                                   | -                                                                                                           | -  |
|    Fixed index annuities                                              | 102,791                        | 11,179                                 | -                                                   | 17,279                        | -                                                   | 131,249                                                                                                     | 17,708  |
| Total other policy liabilities                                                       | 581,069                        | 10,475                                 | -                                                   | 44,377                        | -                                                   | 635,921                                                                                                     | 22,496  |
|                                                                                 |                                |                                        |                                                     |                               |                                                     |                                                                                                        |   |
| Derivative instruments – payable                                               | 46,196                         | 1,734                                  | -                                                   | -                             | -                                                   | 47,930                                                                                                      | 1,734  |
|                                                                                 |                                |                                        |                                                     |                               |                                                     |                                                                                                        |   |
| Total liabilities measured at fair value on    a recurring basis | $  627,265           | $  12,209                    | $        -  | 44,377                        | $        -  | $ 683,851                                                                                                   | $   24,230  |

|                                                                                                           |   | Total gains(losses) includedin earnings |   | Change in unrealizedgains (losses) relatedto assets and liabilitiesstill held  at thereporting date |
|----------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|
| Net investment income                                                                                          | $      | 80,044                             | $      | 152,911                                                                                                  |
| Net derivative loss                                                                                            |   | (11,529)                                |   | (22,268)                                                                                                      |
| Net realized investment losses, excluding    impairment losses on available-for-sale securities |   | (201)                                   |   | -                                                                                                        |
| Net gains                                                                                                      | $      | 68,314                             | $      | 130,643                                                                                                  |

----

|                                                    | Level 1 Transfers                                                                            | Level 2 Transfers                                                                      | Level 3 Transfers                                                                      |
|---------------------------------------------------------|----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
|                                                    | Into                                                                                         | (Out of)                                                                               | Into                                                                                   | (Out of) | Into | (Out of) |
| Assets                                                  |                                                                                         |                                                                                   |                                                                                   |   |   |   |
| Available-for-sale fixed maturity securities:           |                                                                                         |                                                                                   |                                                                                   |   |   |   |
| Asset-backed securities                                 | $              -  | $             -  | $             -  | $             -  | $             -  | $                 -  |
| Residential mortgage-backed securities                  | -                                                                                       | -                                                                                 | -                                                                                 | -  | -  | -  |
| Commercial mortgage-backed securities                   | -                                                                                       | -                                                                                 | -                                                                                 | -  | -  | -  |
| Foreign government & agency securities              | -                                                                                       | -                                                                                 | -                                                                                 | -  | -  | -  |
| U.S. states and political subdivisionssecurities        | -                                                                                       | -                                                                                 | -                                                                                 | -  | -  | -  |
| U.S. treasury and agency securities                     | -                                                                                       | -                                                                                 | -                                                                                 | -  | -  | -  |
| Corporate securities                                    | -                                                                                       | -                                                                                 | 434                                                                               | -  | -  | (434) |
| Total available-for-sale fixed maturitysecurities       | -                                                                                       | -                                                                                 | 434                                                                               | -  | -  | (434) |
|                                                    |                                                                                         |                                                                                   |                                                                                   |   |   |   |
| Trading fixed maturity securities:                      |                                                                                         |                                                                                   |                                                                                   |   |   |   |
| Asset-backed securities                                 | -                                                                                       | -                                                                                 | 45,553                                                                            | (14,821) | 14,821  | (45,553) |
| Residential mortgage-backed securities                  | -                                                                                       | -                                                                                 | 106,147                                                                           | (24,641) | 24,641  | (106,147) |
| Commercial mortgage-backed securities                   | -                                                                                       | -                                                                                 | 696                                                                               | -  | -  | (696) |
| Foreign government & agency securities              | -                                                                                       | -                                                                                 | -                                                                                 | -  | -  | -  |
| U.S. states and political subdivisionssecurities        | -                                                                                       | -                                                                                 | -                                                                                 | -  | -  | -  |
| U.S. treasury and agency securities                     | -                                                                                       | (1,346)                                                                                | 1,346                                                                             | -  | -  | -  |
| Corporate securities                                    | -                                                                                       | -                                                                                 | 47,741                                                                            | (26,377) | 26,377  | (47,741) |
| Total trading fixed maturity securities                 | -                                                                                       | (1,346)                                                                                | 201,483                                                                           | (65,839) | 65,839  | (200,137) |
|                                                    |                                                                                         |                                                                                   |                                                                                   |   |   |   |
| Derivative instruments – receivable:              |                                                                                         |                                                                                   |                                                                                   |   |   |   |
| Interest rate contracts                                 | -                                                                                       | -                                                                                 | -                                                                                 | -  | -  | -  |
| Foreign currency contracts                              | -                                                                                       | -                                                                                 | -                                                                                 | -  | -  | -  |
| Equity contracts                                        | -                                                                                       | -                                                                                 | -                                                                                 | -  | -  | -  |
| Futures contracts                                       | -                                                                                       | -                                                                                 | -                                                                                 | -  | -  | -  |
| Total derivative instruments – receivable         | -                                                                                       | -                                                                                 | -                                                                                 | -  | -  | -  |
|                                                    |                                                                                         |                                                                                   |                                                                                   |   |   |   |
| Separate account assets:                                |                                                                                         |                                                                                   |                                                                                   |   |   |   |
| Mutual fund investments                                 | -                                                                                       | -                                                                                 | -                                                                                 | -  | -  | -  |
| Equity investments                                      | 5,372                                                                                   | -                                                                                 | -                                                                                 | (5,372) | -  | -  |
| Fixed income investments                                | -                                                                                       | (39)                                                                                   | 17,229                                                                            | (556) | 556  | (17,190) |
| Alternative investments                                 | -                                                                                       | -                                                                                 | 98,550                                                                            | -  | -  | (98,550) |
| Other investments                                       | 4,108                                                                                   | -                                                                                 | -                                                                                 | -  | -  | (4,108) |
| Total separate account assets                           | 9,480                                                                                   | (39)                                                                                   | 115,779                                                                           | (5,928) | 556  | (119,848) |
|                                                    |                                                                                         |                                                                                   |                                                                                   |   |   |   |
| Total assets measured at fair value on arecurring basis | $      9,480                                              | $        (1,385)                               | $  317,696                                                              | $  (71,767) | $    66,395  | $    (320,419) |
|                                                    |                                                                                         |                                                                                   |                                                                                   |   |   |   |

----

|                                                    | Level 1 Transfers                                                                                                          | Level 2 Transfers                                                                                  | Level 3 Transfers                                                                      |
|---------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
|                                                    | Into                                                                                                                       | (Out of)                                                                                           | Into                                                                                   | (Out of) | Into | (Out of) |
| Assets                                                  |                                                                                                                       |                                                                                               |                                                                                   |   |   |   |
| Available-for-sale fixed maturity securities:           |                                                                                                                       |                                                                                               |                                                                                   |   |   |   |
| Asset-backed securities                                 | $                   -  | $               -  | $             -  | $             -  | $             -  | $             -  |
| Residential mortgage-backed securities                  | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
| Commercial mortgage-backed securities                   | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
| Foreign government & agency securities              | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
| U.S. states and political subdivisionssecurities        | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
| U.S. treasury and agency securities                     | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
| Corporate securities                                    | -                                                                                                                     | -                                                                                             | -                                                                                 | (6,795) | 6,795  | -  |
| Total available-for-sale fixed maturitysecurities       | -                                                                                                                     | -                                                                                             | -                                                                                 | (6,795) | 6,795  | -  |
|                                                    |                                                                                                                       |                                                                                               |                                                                                   |   |   |   |
| Trading fixed maturity securities:                      |                                                                                                                       |                                                                                               |                                                                                   |   |   |   |
| Asset-backed securities                                 | -                                                                                                                     | -                                                                                             | 5,911                                                                             | (11,074) | 11,074  | (5,911) |
| Residential mortgage-backed securities                  | -                                                                                                                     | -                                                                                             | 50,118                                                                            | (21,725) | 21,725  | (50,118) |
| Commercial mortgage-backed securities                   | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
| Foreign government & agency securities              | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
| U.S. states and political subdivisionssecurities        | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
| U.S. treasury and agency securities                     | -                                                                                                                     | (1,250)                                                                                            | 1,250                                                                             | -  | -  | -  |
| Corporate securities                                    | -                                                                                                                     | -                                                                                             | -                                                                                 | (33,432) | 33,432  | -  |
| Total trading fixed maturity securities                 | -                                                                                                                     | (1,250)                                                                                            | 57,279                                                                            | (66,231) | 66,231  | (56,029) |
|                                                    |                                                                                                                       |                                                                                               |                                                                                   |   |   |   |
| Derivative instruments – receivable:              |                                                                                                                       |                                                                                               |                                                                                   |   |   |   |
| Interest rate contracts                                 | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
| Foreign currency contracts                              | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
| Equity contracts                                        | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
| Futures contracts                                       | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
| Total derivative instruments – receivable         | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
|                                                    |                                                                                                                       |                                                                                               |                                                                                   |   |   |   |
| Separate account assets:                                |                                                                                                                       |                                                                                               |                                                                                   |   |   |   |
| Mutual fund investments                                 | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
| Equity investments                                      | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
| Fixed income investments                                | 9,899                                                                                                                 | -                                                                                             | 3,546                                                                             | (9,899) | -  | (3,546) |
| Alternative investments                                 | 10,144                                                                                                                | -                                                                                             | -                                                                                 | (557) | 557  | (10,144) |
| Other investments                                       | -                                                                                                                     | -                                                                                             | -                                                                                 | -  | -  | -  |
| Total separate account assets                           | 20,043                                                                                                                | -                                                                                             | 3,546                                                                             | (10,456) | 557  | (13,690) |
|                                                    |                                                                                                                       |                                                                                               |                                                                                   |   |   |   |
| Total assets measured at fair value on arecurring basis | $         20,043                                                         | $      (1,250)                                                       | $   60,825                                                         | $  (83,482) | $       73,583  | $    (69,719) |
|                                                    |                                                                                                                       |                                                                                               |                                                                                   |   |   |   |

----

|                   |                                                                  |                                               | September 30, 2010                                       |       | December 31, 2009                                              |
|------------------------|-----------------------------------------------------------------------|----------------------------------------------------|----------------------------------------------------------|------------|----------------------------------------------------------------|
|                   |                                                                  |                                               | Carrying                                                 | Estimated  |                                                           | Carrying | Estimated |
|                   |                                                                  |                                               | Amount                                                   | Fair Value |                                                           | Amount | Fair Value |
| Financial assets:      |                                                                  |                                               |                                                     |       |                                                           |
|                   | Mortgage loans                                                        | $   1,805,209                  | $    1,951,815                  |       | $     1,911,961                  | $       1,937,199  |
|                   | Policy loans                                                          | $      710,060  | $       913,022  |       | $        722,590  | $          837,029  |
|                   |                                                                  |                                               |                                                     |       |                                                           |   |
| Financial liabilities: |                                                                  |                                               |                                                     |       |                                                           |
|                   | Contractholder deposit funds and other   policy liabilities | $ 13,284,955                                  | $  12,503,520                             |       | $   14,104,892                             | $     13,745,774  |
|                   | Debt payable to affiliates                                            | $      783,000  | $       783,000  |       | $        883,000  | $          883,000  |

----

|  Available-for-sale fixed maturity securities | AmortizedCost                                                                            | GrossUnrealizedGains                                                                                | GrossUnrealizedTemporaryLosses                                         | OTTILosses (1)                                                                   | FairValue                                                                          |
|----------------------------------------------------|------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|----------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
| Non-corporate securities:                          |                                                                                     |                                                                                                |                                                                   |                                                                             |                                                                               |
| Asset-backed securities                            |  $            706  |  $              27  | $           (9) |  $           -  |  $           724  |
| Residential mortgage-backed securities             | 35,536                                                                              | 2,403                                                                                          | (1)                                                                    | -                                                                           |          37,938                  |
| Commercial mortgage-backed securities              | 16,110                                                                              | 625                                                                                            | (2,193)                                                                | -                                                                           | 14,542                                                                        |
| Foreign government & agency securities         | 507                                                                                 | 62                                                                                             | -                                                                 | -                                                                           | 569                                                                           |
| U.S. states and political subdivisions securities  | 217                                                                                 | 7                                                                                              | -                                                                 | -                                                                           | 224                                                                           |
| U.S. treasury and agency securities                | 371,840                                                                             | 10,747                                                                                         | -                                                                 | -                                                                           | 382,587                                                                       |
| Total non-corporate securities                     | 424,916                                                                             | 13,871                                                                                         | (2,203)                                                                | -                                                                           | 436,584                                                                       |
|                                               |                                                                                     |                                                                                                |                                                                   |                                                                             |                                                                               |
| Corporate securities                               | 1,015,211                                                                           |  118,569                                                                                  | 203                                                               | (12,304)                                                                         | 1,121,679                                                                     |
|                                               |                                                                                     |                                                                                                |                                                                   |                                                                             |                                                                               |
| Total available-for-sale fixed maturity securities |  $  1,440,127                                                        | $     132,440                                                         |  $    (2,000)                                 |  $ (12,304)                                                                 |  $ 1,558,263                                                             |
|                                               |                                                                                     |                                                                                                |                                                                   |                                                                             |                                                                               |
|                                               |                                                                                     |                                                                                                |                                                                   |                                                                             |                                                                               |
| Trading fixed maturity securities                  | AmortizedCost                                                                            | Gross UnrealizedGains                                                                               | Gross UnrealizedLosses                                                 | FairValue                                                                        |                                                                               |
| Non-corporate securities:                          |                                                                                     |                                                                                                |                                                                   |                                                                             |                                                                               |
| Asset-backed securities                            |  $     573,096                                        |  $         7,716                             |  $      (150,526)                   | $    430,286                             |                                                                               |
| Residential mortgage-backed securities             | 1,314,699                                                                           | 18,239                                                                                         | (331,379)                                                              | 1,001,559                                                    |                                                                               |
| Commercial mortgage-backed securities              | 931,481                                                                             | 38,608                                                                                         | (193,482)                                                              | 776,607                                                      |                                                                               |
| Foreign government & agency securities         | 162,973                                                                             | 14,907                                                                                         | -                                                                 | 177,880                                                      |                                                                               |
| U.S. states and political subdivisions securities  | 606                                                                                 | 44                                                                                             | -                                                                 | 650                                                          |                                                                               |
| U.S. treasury and agency securities                | 711,306                                                                             | 5,465                                                                                          | -                                                                 | 716,771                                                      |                                                                               |
| Total non-corporate securities                     | 3,694,161                                                                           | 84,979                                                                                         | (675,387)                                                              | 3,103,753                                                    |                                                                               |
|                                               |                                                                                     |                                                                                                |                                                                   |                                                                             |                                                                               |
| Corporate securities                               | 8,608,491                                                                           | 551,757                                                                                        | (127,040)                                                              | 9,033,208                                                    |                                                                               |
|                                               |                                                                                     |                                                                                                |                                                                   |                                                                             |                                                                               |
| Total trading fixed maturity securities            |  $12,302,652                                                                   |  $     636,736                                                   |  $      (802,427)                   | $12,136,961                                                  |                                                                               |

|   | (1)  Represents the before tax non-credit OTTI loss recorded as a component of accumulated other comprehensive income (“AOCI”) for assets still held at the reporting date. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                               |                                                                         |                                                                                    | Gross                                                                         |                                                                             |                                                                               |
|----------------------------------------------------|------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|----------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
|  Available-for-sale fixed maturity securities | AmortizedCost                                                                | GrossUnrealizedGains                                                                    | UnrealizedTemporaryLosses                                                     | OTTILosses (1)                                                                   | FairValue                                                                          |
| Non-corporate securities:                          |                                                                         |                                                                                    |                                                                          |                                                                             |                                                                               |
| Asset-backed securities                            | $           966  | $             42  | $            (19) | $            -  | $            989  |
| Residential mortgage-backed securities             | 45,531                                                                  | 2,170                                                                              | -                                                                        | -                                                                           | 47,701                                                                        |
| Commercial mortgage-backed securities              | 18,566                                                                  | 114                                                                                | (2,600)                                                                       | -                                                                           | 16,080                                                                        |
| Foreign government & agency securities         | 728                                                                     | 39                                                                                 | (7)                                                                           | -                                                                           | 760                                                                           |
| U.S. treasury and agency securities                | 38,063                                                                  | 1,156                                                                              | (88)                                                                          | -                                                                           | 39,131                                                                        |
| Total non-corporate securities                     | 103,854                                                                 | 3,521                                                                              | (2,714)                                                                       | -                                                                           | 104,661                                                                       |
|                                               |                                                                         |                                                                                    |                                                                          |                                                                             |                                                                               |
| Corporate securities                               | 1,017,570                                                               | 86,026                                                                             | (18,993)                                                                      | (13,748)                                                                         | 1,070,855                                                                     |
|                                               |                                                                         |                                                                                    |                                                                          |                                                                             |                                                                               |
| Total available-for-sale fixed maturity securities | $ 1,121,424                                                             | $      89,547                                        | $     (21,707)                                       | $  (13,748)                                                            | $   1,175,516                                                  |
|                                               |                                                                         |                                                                                    |                                                                          |                                                                             |                                                                               |
|                                               |                                                                         |                                                                                    |                                                                          |                                                                             |                                                                               |
| Trading fixed maturity securities                  | AmortizedCost                                                                | GrossUnrealizedGains                                                                    | GrossUnrealizedLosses                                                         | FairValue                                                                        |                                                                               |
| Non-corporate securities:                          |                                                                         |                                                                                    |                                                                          |                                                                             |                                                                               |
| Asset-backed securities                            | $      658,864                            | $       6,766                                   | $   (198,367)                                                  | $   467,263                                                       |                                                                               |
| Collateralized mortgage obligations                | -                                                                       | -                                                                                  | -                                                                        | -                                                                                |                                                                               |
| Residential mortgage-backed securities             | 1,437,147                                                               | 13,051                                                                             | (409,307)                                                                     | 1,040,891                                                                        |                                                                               |
| Commercial mortgage-backed securities              | 972,971                                                                 | 23,199                                                                             | (357,241)                                                                     | 638,929                                                                          |                                                                               |
| Foreign government & agency securities         | 76,971                                                                  | 6,277                                                                              | -                                                                        | 83,248                                                                           |                                                                               |
| U.S. treasury and agency securities                | 525,758                                                                 | 14,122                                                                             | (2,350)                                                                       | 537,530                                                                          |                                                                               |
| Total non-corporate securities                     | 3,671,711                                                                    | 63,415                                                                             | (967,265)                                                                     | 2,767,861                                                                        |                                                                               |
|                                               |                                                                         |                                                                                    |                                                                          |                                                                             |                                                                               |
| Corporate securities                               | 8,371,250                                                                    | 300,777                                                                            | (309,366)                                                                     | 8,362,661                                                                        |                                                                               |
|                                               |                                                                         |                                                                                    |                                                                          |                                                                             |                                                                               |
| Total trading fixed maturity securities            | $  12,042,961                                                      | $    364,192                                                   | $(1,276,631)                                                                  | $11,130,522                                                                      |                                                                               |

|   | (1)  Represents the before tax non-credit OTTI loss recorded as a component of AOCI for assets still held at the reporting date. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                           |                                                    |                                                                            |                                                                      | Amortized Cost | Fair Value |
|--------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------|----------------|------------|
| Maturities of available-for-sale fixed securities:                                                                             |                                                    |                                                                            |
|                                                                                                                           | Due in one year or less                                 |  $           36,047 |  $          37,012 |
|                                                                                                                           | Due after one year through five years                   | 667,252                                                                         | 729,350                                                                   |
|                                                                                                                           | Due after five years through ten years                  | 82,566                                                                          | 96,147                                                                    |
|                                                                                                                           | Due after ten years                                     |                                                                            |                                                                      | 601,911        | 642,550    |
|           Subtotal – Maturities of available-for-sale fixed securities |                                                    | 1,387,776                                                                       | 1,505,059                                                                 |
| ABS, RMBS and CMBS securities(1)                                                                                               |                                                    | 52,351                                                                          | 53,204                                                                    |
|           Total available-for-sale fixed securities                          |                                                    | $      1,440,127                                  |  $     1,558,263                            |
|                                                                                                                           |                                                    |                                                                            |                                                                      |
| Maturities of trading fixed securities:                                                                                        |                                                    |                                                                            |
|                                                                                                                           | Due in one year or less                                 |  $      1,509,448                            |  $       1,524,037                |
|                                                                                                                           | Due after one year through five years                   | 4,337,385                                                                       | 4,556,522                                                                 |
|                                                                                                                           | Due after five years through ten years                  | 2,195,674                                                                       | 2,388,610                                                                 |
|                                                                                                                           | Due after ten years                                     | 1,440,869                                                                       | 1,459,340                                                                 |
|                                                                                                                           | Subtotal – Maturities of trading fixed securities | 9,483,376                                                                       | 9,928,509                                                                 |
| ABS, RMBS and CMBS securities(1)                                                                                               | 2,819,276                                               | 2,208,452                                                                       |
|                                                                                                                           | Total trading fixed securities                          |  $    12,302,652                                       |  $     12,136,961                           |
|                                                                                                                           |                                                    |                                                                            |                                                                      |           |

| (1)   | ABS, RMBS and CMBS securities are shown separately in the table as they are not due at a single maturity date. |
|-----------------|----------------------------------------------------------------------------------------------------------------|

----

|                                             |  Less Than Twelve Months                                                    |  Twelve Months Or More                                                      |  Total                                                     |
|--------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|-----------------------------------------------------------------|
|                                             |                                                                             |                                                                             |                                                            |   |   |   |
|                                             | FairValue                                                                        | GrossUnrealizedLosses                                                            | FairValue                                                       | GrossUnrealizedLosses | FairValue | GrossUnrealizedLosses |
|                                             |                                                                             |                                                                             |                                                            |   |   |   |
| Non-corporate securities:                        |                                                                             |                                                                             |                                                            |   |   |   |
| Asset-backed securities                          | $            -  | $            -  | $         16  | $           (9) | $        16  | $              (9) |
| Residential mortgage-backed securities           | 27                                                                          | (1)                                                                              | -                                                          | -  | 27  | (1) |
| Commercial mortgage-backed securities            | -                                                                           | -                                                                           | 4,625                                                      | (2,193) | 4,625  | (2,193) |
| Foreign government & agency securities       | -                                                                           | -                                                                           | -                                                          | -  | -  | -  |
| U.S. states and political subdivisionssecurities | -                                                                           | -                                                                           | -                                                          | -  | -  | -  |
| U.S. treasury and agency securities              | -                                                                           | -                                                                           | -                                                          | -  | -  | -  |
| Total non-corporate securities                   | 27                                                                          | (1)                                                                              | 4,641                                                      | (2,202) | 4,668  | (2,203) |
|                                             |                                                                             |                                                                             |                                                            |   |   |   |
| Corporate securities                             | 18,982                                                                      | (466)                                                                            | 131,390                                                    | (11,635) | 150,372  | (12,101) |
|                                             |                                                                             |                                                                             |                                                            |   |   |   |
|  Total                                      | $      19,009                                 | $          (467)               | $    136,031                           | $  (13,837) | $155,040  | $     (14,304) |

|                                       |  Less Than Twelve Months                                                                |  Twelve Months Or More                                                                  |  Total                                                                       |
|--------------------------------------------|----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
|                                       |                                                                                         |                                                                                         |                                                                              |   |   |   |
|                                       |  FairValue                                                                              | GrossUnrealizedLosses                                                                        |  FairValue                                                                   | GrossUnrealizedLosses |  FairValue | GrossUnrealizedLosses |
|                                       |                                                                                         |                                                                                         |                                                                              |   |   |   |
| Non-corporate securities:                  |                                                                                         |                                                                                         |                                                                              |   |   |   |
| Asset-backed securities                    | $              -  | $              -  | $            37  | $          (19) | $       37  | $       (19) |
| Commercial mortgage-backed securities      | 499                                                                                     | (1)                                                                                          | 6,597                                                                        | (2,599) | 7,096  | (2,600) |
| Foreign government & agency securities | -                                                                                       | -                                                                                       | 212                                                                          | (7) | 212  | (7) |
| U.S. treasury and agency securities        | 16,942                                                                                  | (88)                                                                                         | -                                                                            | -  | 16,942  | (88) |
| Total non-corporate securities             | 17,441                                                                                  | (89)                                                                                         | 6,846                                                                        | (2,625) | 24,287  | (2,714) |
|                                       |                                                                                         |                                                                                         |                                                                              |   |   |   |
| Corporate securities                       | 83,967                                                                                  | (6,208)                                                                                      | 183,430                                                                      | (26,533) | 267,397  | (32,741) |
|                                       |                                                                                         |                                                                                         |                                                                              |   |   |   |
| Total                                      | $   101,408                                                              | $     (6,297)                                                       | $   190,276                                                   | $    (29,158) | $ 291,684  | $   (35,455) |
|                                       |                                                                                         |                                                                                         |                                                                              |   |   |   |

----

----

----

|                                                                                                          |   | Nine-month Period Ended September 30, 2010 |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                                                                          |   |                                       |   |
| Beginning balance, at January 1, 2010                                                                         | $      | 9,148                                 |   |
| Add: Credit losses remaining in accumulated deficit related   to the adoption of FASB ASC Topic 320 |   | -                                     |   |
| Add: Credit losses on OTTI not previously recognized                                                          |   | 885                                   |   |
| Less: Credit losses on securities sold                                                                        |   | (2,528)                                    |   |
| Less: Credit losses on securities impaired due to intent to  sell                                        |   |                                       |   |
| Add: Credit losses on previously impaired securities                                                          |   |                                       |   |
| Less: Increases in cash flows expected on previously   impaired securities                          |   | (1,543)                                    |   |
| Ending balance, at September 30, 2010                                                                         | $      | 5,962                                 |   |

|                                                                                                          |   | Six-month Period Ended September 30, 2009 |   |
|---------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                                                          |   |                                      |   |
| Beginning balance, at April 1, 2009                                                                           | $      | -                                    |   |
| Add: Credit losses remaining in accumulated deficit related   to the adoption of FASB ASC Topic 320 |   | 27,805                               |   |
| Add: Credit losses on OTTI not previously recognized                                                          |   | 4,834                                |   |
| Less: Credit losses on securities sold                                                                        |   | (5,031)                                   |   |
| Less: Credit losses on securities impaired due to intent to   sell                                  |   | -                                    |   |
| Add: Credit losses on previously impaired securities                                                          |   | -                                    |   |
| Less: Increases in cash flows expected on previously   impaired securities                          |   | (686)                                     |   |
| Ending balance, at September 30, 2009                                                                         | $      | 26,922                               |   |

----

----

|                 | At September 30, 2010                   | At December 31, 2009                                                                        |                                    |
|----------------------|-----------------------------------------|---------------------------------------------------------------------------------------------|-----------------------------------------|
|                 |      Number of |        Principal       Notional |      Number of |                 Principal                  Notional |   |
|                 |                                    | Contracts                                                                                   |                                    | Contracts |   | Contracts |   | Contracts |
|                 |                                    |                                                                                        |                                    |   |   |   |   |   |
| Interest rate swaps  |                                    | 69                                                                                          |                                    | $           5,980,000 |   | 102  |   |  $      8,883,000  |
| Currency swaps       |                                    | 13                                                                                          |                                    |                 355,419 |   | 10  |   | 351,740  |
| Credit default swaps |                                    | 1                                                                                           |                                    |                   37,400 |   | 1  |   |         55,000  |
| Equity swaps         |                                    | -                                                                                           |                                    |                            - |   | 2  |   | 4,908  |
| Swaptions            |                                    | 1                                                                                           |                                    |                 350,000 |   | 5  |   | 1,150,000 |
| Futures (1)          |                                    | (25,294)                                                                                    |                                    |              3,330,823 |   | (13,811) |   | 2,378,216  |
| Index call options   |                                    | 8,288                                                                                       |                                    |              1,532,376 |   | 7,345  |   | 1,313,381  |
| Index put options    |                                    | 4,400                                                                                       |                                    |                 502,128 |   | 7,100  |   | 682,499  |
| Total                |                                    |                                                                                        |                                    | $         12,088,146 |   |   |   | $    14,818,744  |

----

|                         | At September 30, 2010 | At December 31, 2009                                                 |              |
|------------------------------|-----------------------|----------------------------------------------------------------------|-------------------|
|                         | Asset Derivatives     | Liability Derivatives                                                | Asset Derivatives |                         Liability Derivatives |   |
|                         |                  | Fair Value (a)                                                       |              | Fair Value (a) |   | Fair Value (a) |   | Fair Value (a) |
|                         |                  |                                                                 |              |   |   |   |   |   |
| Interest rate contracts      |                  | $          244,647 |              | $          467,340  |   | $   130,178  |   | $   532,401  |
| Foreign currency contracts   |                  | 40,891                                                               |              | 1,957  |   | 56,032  |   | 905  |
| Equity contracts             |                  | 41,523                                                               |              | -  |   | 58,692  |   | -  |
| Credit contracts             |                  | -                                                                    |              | 30,633  |   | -  |   | 34,349  |
| Futures contracts (b)        |                  | 6,337                                                                |              | 950  |   | 14,325  |   | 5,255  |
| Total derivative instruments |                  | 333,398                                                              |              | 500,880  |   | 259,227  |   | 572,910  |
| Embedded derivatives (c)     |                  | -                                                               |              | 900,314  |   | 11,308  |   | 417,764  |
| Total                        |                  | $          333,398 |              | $     1,401,194  |   | $   270,535  |   | $   990,674  |

| (a)   | Amounts are presented without consideration of cross-transaction netting and collateral. |
|-----------------|------------------------------------------------------------------------------------------|

| (b)   | Futures contracts include interest rate, equity price and foreign currency exchange risks. |
|-----------------|--------------------------------------------------------------------------------------------|

| (c)   | Embedded derivatives expose the Company to a combination of credit, interest rate and equity price risks. |
|-----------------|-----------------------------------------------------------------------------------------------------------|

|                                                                 |   | For the nine-month period ended September 30,                                                |   | For the three-month period ended September 30, |
|----------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|------------------------------------------------|
|                                                                 |   | 2010                                                                                         |   | 2009                                           |   | 2010 |   | 2009 |   |
|                                                                 |   |                                                                                         |   |                                           |   |   |   |   |   |
| Interest rate contracts                                              |   |  $   (96,191)                                                            |   | $  132,861                      |   | $ (17,522) |   | $    (39,973) |   |
| Foreign currency contracts                                           |   |  (7,480)                                                                                |   | (7,580)                                        |   |  (2,055) |   | (5,371) |   |
| Equity contracts                                                     |   |  (32,856)                                                                               |   | (58,355)                                       |   |  (18,844) |   | (16,867) |   |
| Credit contracts                                                     |   | 3,716                                                                                   |   | (5,864)                                        |   |  3,093 |   | (1,734) |   |
| Futures contracts                                                    |   |  (9,531)                                                                                |   | (246,742)                                      |   |  (149,933) |   | (142,847) |   |
| Embedded derivatives                                                 |   | (480,722)                                                                                    |   | 2,801                                     |   | 129,362 |   | (139,739) |   |
| Net derivative loss from continuing    operations     |   | (623,064)                                                                                    |   | (182,879)                                      |   |  (55,899) |   |   (346,531) |   |
| Net derivative income from    discontinued operations |   | $              -  |   | $  180,023                      |   | $             -  |   | $      42,085  |   |

----

----

|                                                                 | September 30, |            | December 31, |
|----------------------------------------------------------------------|---------------|-----------------|--------------|
|                                                                 | 2010          |            | 2009         |
| AssetsReinsurance receivable                                         |  $       | 1,472,486  |         | $ | 1,540,697  |
|                                                                 |          |            |         |   |   |
| LiabilitiesContractholder deposit funds and other policy liabilities |          | 1,506,118  |         |   | 1,493,145  |
| Future contract and policy benefits                                  |          | 2,104      |         |   | 2,104  |
| Reinsurance payable                                                  |          | 1,555,985  |         |   | 1,603,711  |

----

|                                                                 | September 30, |          | December 31, |
|----------------------------------------------------------------------|---------------|---------------|--------------|
|                                                                 | 2010          |          | 2009         |
| AssetsReinsurance receivable                                         |  $       | 422,275  |         | $ | 422,486  |
|                                                                 |          |          |         |   |   |
| LiabilitiesContractholder deposit funds and other policy liabilities |          | 469,560  |         |   | 466,899  |
| Reinsurance payable                                                  |          | 434,147  |         |   | 430,528  |
|                                                                 |          |          |         |   |   |

----

|                                                                 | September 30, |          | December 31, |
|----------------------------------------------------------------------|---------------|---------------|--------------|
|                                                                 | 2010          |          | 2009         |
| AssetsReinsurance receivable                                         |  $       | 149,465  |         |  $ |  103,802  |
|                                                                 |          |          |         |   |   |
| LiabilitiesContractholder deposit funds and other policy liabilities |          | 114,015  |         |   |   84,606  |
| Future contract and policy benefits                                  |          | 21,118   |         |   | 10,518  |
| Reinsurance payable                                                  |          | 223,552  |         |   | 182,000  |

----

----

----

| Benefit Type                       | Account Balance                                                                                          | Net Amountat Risk 1                                                                                     | AverageAttained Age                                                                                                    |
|------------------------------------|----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|
| Minimum death                      | $           18,790,347                            | $           2,163,591                            | 66.2                                                                                                                   |
| Minimum income                     | $                174,815 | $                73,166 |                    62.0 |
| Minimum accumulation andwithdrawal | $           11,161,822                            | $              382,685            | 63.3                                                                                                                   |

|  Benefit Type                |  Account Balance                                                                                    | Net Amountat Risk 1                                                                                     | Average Attained Age                                                                                                   |
|-----------------------------------|----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|
| Minimum death                     | $           16,947,362                            | $           2,459,360                            | 66.2                                                                                                                   |
| Minimum income                    | $                194,780 | $                84,591 |                    61.5 |
| Minimum accumulation orwithdrawal | $             8,866,525                 | $              212,371            | 63.0                                                                                                                   |

|                                                              | GuaranteedMinimumDeath Benefit                                                                                      |   | GuaranteedMinimumIncome Benefit                                                 |   | Total                                                                      |
|-------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|
| Balance at December 31, 2009                                      | $                 96,267  |   | $           10,058  |   | $      106,325                          |
|                                                              |                                                                                                                |   |                                                                            |   |                                                                       |
| Benefit ratio change /     Assumption changes |  40,494                                                                                                   |   | 8,789                                                                      |   | 49,283                                                                |
| Incurred guaranteed benefits                                      | 22,498                                                                                                         |   | 1,161                                                                      |   |   23,659                                                    |
| Paid guaranteed benefits                                          |  (28,465)                                                                                                      |   |  (2,898)                                                                   |   | (31,363)                                                                   |
| Interest                                                          | 5,766                                                                                                          |   |   533                                                            |   | 6,299                                                                 |
|                                                              |                                                                                                                |   |                                                                            |   |                                                                       |
| Balance at September 30, 2010                                     | $             136,560                         |   | $           17,643  |   | $          154,203  |

----

|                                     | GuaranteedMinimumDeath Benefit                                                               |   | GuaranteedMinimumIncome Benefit                                                                             |   |   Total                                                                                           |
|------------------------------------------|----------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|
| Balance at December 31, 2008             | $             201,648  |   | $            18,773                        |   | $          220,421                                   |
|                                     |                                                                                         |   |                                                                                                        |   |                                                                                                        |
| Benefit ratio change /Assumption changes |  (63,705)                                                                               |   | (5,874)                                                                                                     |   | (69,579)                                                                                                    |
| Incurred guaranteed benefits             | 35,127                                                                                  |   | 2,149                                                                                                  |   |               37,276             |
| Paid guaranteed benefits                 |  (82,226)                                                                               |   |  (4,680)                                                                                               |   |             (86,906)                            |
| Interest                                 | 8,542                                                                                   |   |                 1,085  |   |                 9,627  |
|                                     |                                                                                         |   |                                                                                                        |   |                                                                                                        |
| Balance at September 30, 2009            | $             99,386   |   | $            11,453                        |   | $          110,839                                   |

----

----

|                                                                                                             | SLUSas Parent |            | SLNY   |   | OtherSubs     |   | Elimination |        | ConsolidatedCompany |
|------------------------------------------------------------------------------------------------------------------|---------------|-----------------|--------|--------|---------------|--------|-------------|-------------|---------------------|
|                                                                                                             |          |            |   |   |          |   |        |        |                |   |   |   |   |   |
| Revenues                                                                                                         |          |            |   |   |          |   |        |        |                |   |   |   |   |   |
|                                                                                                             |          |            |   |   |          |   |        |        |                |   |   |   |   |   |
| Premiums and annuity considerations                                                                              | $             | 12,401     |   | $      | 87,986   |   | $           | -      |                | $ | -  |   | $ | 100,387  |
| Net investment income (1)                                                                                        |          | 1,202,835  |   |   | 128,179  |   |        | 2,973  |                |   | -  |   |   | 1,333,987  |
| Net derivative loss                                                                                              |          | (580,666)       |   |   | (42,398)      |   |        | -      |                |   | -  |   |   | (623,064) |
| Net realized investment gains (losses), excluding  impairment losses on available-for-sale  securities |          | 17,468     |   |   | (279)         |   |        | (330)       |                |   | -  |   |   | 16,859  |
| Other-than-temporary impairment losses                                                                           |          | (735)           |   |   | (150)         |   |        | -      |                |   | -  |   |   | (885) |
| Fee and other income                                                                                             |          | 342,657    |   |   | 11,866   |   |        | 7,001  |                |   | -  |   |   | 361,524  |
|                                                                                                             |          |            |   |   |          |   |        |        |                |   |   |   |   |   |
| Total revenues                                                                                                   |          | 993,960    |   |   | 185,204  |   |        | 9,644  |                |   | -  |   |   | 1,188,808  |
|                                                                                                             |          |            |   |   |          |   |        |        |                |   |   |   |   |   |
| Benefits and Expenses                                                                                            |          |            |   |   |          |   |        |        |                |   |   |   |   |   |
|                                                                                                             |          |            |   |   |          |   |        |        |                |   |   |   |   |   |
| Interest credited                                                                                                |          | 263,861    |   |   | 44,133   |   |        | 699    |                |   | -  |   |   | 308,693  |
| Interest expense                                                                                                 |          | 39,589     |   |   | (72)          |   |        | -      |                |   | -  |   |   | 39,517  |
| Policyowner benefits                                                                                             |          | 80,136     |   |   | 63,363   |   |        | 174    |                |   | -  |   |   | 143,673  |
| Amortization of DAC, VOBA and VOCRA                                                                              |          | 119,133    |   |   | 58,301   |   |        | -      |                |   | -  |   |   | 177,434  |
| Other operating expenses                                                                                         |          | 199,652    |   |   | 30,028   |   |        | 6,667  |                |   | -  |   |   | 236,347  |
|                                                                                                             |          |            |   |   |          |   |        |        |                |   |   |   |   |   |
| Total benefits and expenses                                                                                      |          | 702,371    |   |   | 195,753  |   |        | 7,540  |                |   | -  |   |   | 905,664  |
|                                                                                                             |          |            |   |   |          |   |        |        |                |   |   |   |   |   |
| Income (loss) before income tax expense (benefit)                                                                |          | 291,589    |   |   | (10,549)      |   |        | 2,104  |                |   | -  |   |   | 283,144  |
|                                                                                                             |          |            |   |   |          |   |        |        |                |   |   |   |   |   |
| Income tax expense (benefit)                                                                                     |          | 94,867     |   |   | (4,391)       |   |        | 612    |                |   | -  |   |   | 91,088  |
| Equity in the net loss of subsidiaries                                                                           |          | (4,666)         |   |   | -        |   |        | -      |                |   | 4,666  |   |   | -  |
|                                                                                                             |          |            |   |   |          |   |        |        |                |   |   |   |   |   |
| Net income (loss)                                                                                                | $             | 192,056    |   | $      | (6,158)       |   | $           | 1,492  |                | $ | 4,666  |   | $ | 192,056  |

| (1)   | SLUS as parent’s, SLNY’s and Other Subs’ net investment income includes an increase in the market value of trading fixed maturity securities of  $686.5 million, $62.3 million and $0 million, respectively, for the nine-month period ended September 30, 2010. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                             | SLUSas Parent |            |  SLNY |   | OtherSubs     |   |  Elimination |          | ConsolidatedCompany |
|------------------------------------------------------------------------------------------------------------------|---------------|-----------------|------------|--------|---------------|--------|-------------------|---------------|---------------------|
|                                                                                                             |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Revenues                                                                                                         |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
|                                                                                                             |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Premiums and annuity considerations                                                                              | $             | 10,602     |       | $      | 90,410   |   | $                 | -        |                | $ | -  |   | $ | 101,012  |
| Net investment income (1)                                                                                        |          | 2,049,633  |       |   | 208,693  |   |              | 3,319    |                |   | -  |   |   | 2,261,645  |
| Net derivative (loss) income                                                                                     |          | (188,157)       |       |   | 5,278    |   |              | -        |                |   | -  |   |   | (182,879) |
| Net realized investment (losses) gains, excluding  impairment losses on available-for-sale  securities |          | (7,677)         |       |   | 3        |   |              | (727)         |                |   | -  |   |   | (8,401) |
| Other-than-temporary impairment losses                                                                           |          | (4,450)         |       |   | (181)         |   |              | (203)         |                |   | -  |   |   | (4,834) |
| Fee and other income                                                                                             |          | 279,960    |       |   | 6,034    |   |              | 8,908    |                |   | -  |   |   | 294,902  |
|                                                                                                             |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Total revenues                                                                                                   |          | 2,139,911  |       |   | 310,237  |   |              | 11,297   |                |   | -  |   |   | 2,461,445  |
|                                                                                                             |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Benefits and Expenses                                                                                            |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
|                                                                                                             |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Interest credited                                                                                                |          | 255,942    |       |   | 35,261   |   |              | 877      |                |   | -  |   |   | 292,080  |
| Interest expense                                                                                                 |          | 33,212     |       |   | 769      |   |              | -        |                |   | -  |   |   | 33,981  |
| Policyowner benefits                                                                                             |          | 26,799     |       |   | 59,611   |   |              | 1,502    |                |   | -  |   |   | 87,912  |
| Amortization of DAC, VOBA and VOCRA                                                                              |          | 434,372    |       |   | 85,696   |   |              | -        |                |   | -  |   |   | 520,068  |
| Other operating expenses                                                                                         |          | 137,788    |       |   | 34,162   |   |              | 2,990    |                |   | -  |   |   | 174,940  |
|                                                                                                             |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Total benefits and expenses                                                                                      |          | 888,113    |       |   | 215,499  |   |              | 5,369    |                |   | -  |   |   | 1,108,981  |
|                                                                                                             |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Income from continuing operations before income   tax expense                                          |          | 1,251,798  |       |   | 94,738   |   |              | 5,928    |                |   | -  |   |   | 1,352,464  |
|                                                                                                             |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Income tax expense                                                                                               |          | 359,512    |       |   | 27,500   |   |              | 1,581    |                |   | -  |   |   | 388,593  |
| Equity in the net income of subsidiaries                                                                         |          | 216,311    |       |   | -        |   |              | -        |                |   | (216,311) |   |   | -  |
|                                                                                                             |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Net income from continuing operations                                                                            |          | 1,108,597  |       |   | 67,238   |   |              | 4,347    |                |   | (216,311) |   |   | 963,871  |
|                                                                                                             |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Income from discontinued operations, net of tax                                                                  |          | -          |       |   | -        |   |              | 144,726  |                |   | -  |   |   | 144,726  |
|                                                                                                             |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Net income                                                                                                       | $             | 1,108,597  |       | $      | 67,238   |   | $                 | 149,073  |                | $ | (216,311) |   | $ | 1,108,597  |

| (1)   | SLUS as parent’s, SLNY’s and Other Subs’ net investment income includes an increase in the market value of trading fixed maturity securities of $1,724.4 million, $168.9 million and $0.0 million, respectively, for the nine-month period ended September 30, 2009. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                             | SLUSas Parent |            | SLNY   |   | OtherSubs    |   | Elimination |        | ConsolidatedCompany |
|------------------------------------------------------------------------------------------------------------------|---------------|-----------------|--------|--------|--------------|--------|-------------|-------------|---------------------|
|                                                                                                             |          |            |   |   |         |   |        |        |                |   |   |   |   |   |
| Revenues                                                                                                         |          |            |   |   |         |   |        |        |                |   |   |   |   |   |
|                                                                                                             |          |            |   |   |         |   |        |        |                |   |   |   |   |   |
| Premiums and annuity considerations                                                                              | $             | 4,094      |   | $      | 28,051  |   | $           | -      |                | $ | -  |   | $ | 32,145  |
| Net investment income (1)                                                                                        |          | 431,199    |   |   | 49,875  |   |        | 1,466  |                |   | -  |   |   | 482,540  |
| Net derivative (loss) income                                                                                     |          | (60,482)        |   |   | 4,583   |   |        | -      |                |   | -  |   |   | (55,899) |
| Net realized investment gains (losses), excluding  impairment losses on available-for-sale  securities |          | 1,086      |   |   | (879)        |   |        | 313    |                |   | -  |   |   | 520  |
| Other-than-temporary impairment losses                                                                           |          | -          |   |   | -       |   |        | -      |                |   | -  |   |   | -  |
| Fee and other income                                                                                             |          | 124,315    |   |   | (1,633)      |   |        | 2,614  |                |   | -  |   |   | 125,296 |
|                                                                                                             |          |            |   |   |         |   |        |        |                |   |   |   |   |   |
| Total revenues                                                                                                   |          | 500,212    |   |   | 79,997  |   |        | 4,393  |                |   | -  |   |   | 584,602  |
|                                                                                                             |          |            |   |   |         |   |        |        |                |   |   |   |   |   |
| Benefits and Expenses                                                                                            |          |            |   |   |         |   |        |        |                |   |   |   |   |   |
|                                                                                                             |          |            |   |   |         |   |        |        |                |   |   |   |   |   |
| Interest credited                                                                                                |          | 112,508    |   |   | 19,122  |   |        | 252    |                |   | -  |   |   | 131,882  |
| Interest expense                                                                                                 |          | 13,094     |   |   | (29)         |   |        | -      |                |   | -  |   |   | 13,065  |
| Policyowner benefits                                                                                             |          | 9,053      |   |   | 17,989  |   |        | 54     |                |   | -  |   |   | 27,096  |
| Amortization of DAC, VOBA and VOCRA                                                                              |          | 413,840    |   |   | 16,826  |   |        | -      |                |   | -  |   |   | 430,666  |
| Other operating expenses                                                                                         |          | 63,505     |   |   | 10,519  |   |        | 2,530  |                |   | -  |   |   | 76,554  |
|                                                                                                             |          |            |   |   |         |   |        |        |                |   |   |   |   |   |
| Total benefits and expenses                                                                                      |          | 612,000    |   |   | 64,427  |   |        | 2,836  |                |   | -  |   |   | 679,263  |
|                                                                                                             |          |            |   |   |         |   |        |        |                |   |   |   |   |   |
| (Loss) income before income tax (benefit) expense                                                                |          | (111,788)  |   |   | 15,570  |   |        | 1,557  |                |   | -  |   |   | (94,661) |
|                                                                                                             |          |            |   |   |         |   |        |        |                |   |   |   |   |   |
| Income tax (benefit) expense                                                                                     |          | (35,751)        |   |   | 5,020   |   |        | 465    |                |   | -  |   |   | (30,266) |
| Equity in the net income of subsidiaries                                                                         |          | 11,642     |   |   | -       |   |        | -      |                |   | (11,642) |   |   | -  |
|                                                                                                             |          |            |   |   |         |   |        |        |                |   |   |   |   |   |
| Net (loss) income                                                                                                | $             | (64,395)        |   | $      | 10,550  |   | $           | 1,092  |                | $ | (11,642) |   | $ | (64,395) |

| (1)   | SLUS as parent’s, SLNY’s and Other Subs’ net investment income includes an increase in the market value of trading fixed maturity securities of $271.4 million, $27.4 million and $0.0 million, respectively, for the three-month period ended September 30, 2010. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                     | SLUSas Parent |          |  SLNY |   | OtherSubs     |   |  Elimination |                                                                                            | ConsolidatedCompany |
|----------------------------------------------------------------------------------------------------------|---------------|---------------|------------|--------|---------------|--------|-------------------|-------------------------------------------------------------------------------------------------|---------------------|
|                                                                                                     |          |          |       |   |          |   |              |                                                                                            |                |   |   |   |   |   |
| Revenues                                                                                                 |          |          |       |   |          |   |              |                                                                                            |                |   |   |   |   |   |
|                                                                                                     |          |          |       |   |          |   |              |                                                                                            |                |   |   |   |   |   |
| Premiums and annuity considerations                                                                      | $             | 5,656    |       | $      | 29,861   |   | $                 | -                                                                                          |                | $ | -  |   | $ | 35,517  |
| Net investment income (1)                                                                                |          | 956,969  |       |   | 86,866   |   |              | 867                                                                                        |                |   | -  |   |   | 1,044,702  |
| Net derivative loss                                                                                      |          | (340,946)     |       |   | (5,585)       |   |              | -                                                                                          |                |   | -  |   |   | (346,531) |
| Net realized investment losses, excluding  impairment losses on available-for-sale  securities |          | (5,285)       |       |   | (41)          |   |              |                (238) |                |   | -  |   |   | (5,564) |
| Other-than-temporary impairment losses                                                                   |          | -        |       |   | -        |   |              | -                                                                                          |                |   | -  |   |   | -  |
| Fee and other income                                                                                     |          | 118,994  |       |   | 2,629    |   |              | 6,611                                                                                      |                |   | -  |   |   | 128,234  |
|                                                                                                     |          |          |       |   |          |   |              |                                                                                            |                |   |   |   |   |   |
| Total revenues                                                                                           |          | 735,388  |       |   | 113,730  |   |              | 7,240                                                                                      |                |   | -  |   |   | 856,358  |
|                                                                                                     |          |          |       |   |          |   |              |                                                                                            |                |   |   |   |   |   |
| Benefits and Expenses                                                                                    |          |          |       |   |          |   |              |                                                                                            |                |   |   |   |   |   |
|                                                                                                     |          |          |       |   |          |   |              |                                                                                            |                |   |   |   |   |   |
| Interest credited                                                                                        |          | 57,928   |       |   | 9,097    |   |              | (103)                                                                                           |                |   | -  |   |   | 66,922  |
| Interest expense                                                                                         |          | 8,275    |       |   | (32)          |   |              | -                                                                                          |                |   | -  |   |   | 8,243  |
| Policyowner benefits                                                                                     |          | (23,110)      |       |   | 20,899   |   |              | 87                                                                                         |                |   | -  |   |   | (2,124) |
| Amortization of DAC, VOBA and VOCRA                                                                      |          | 56,032   |       |   | 62,216   |   |              | -                                                                                          |                |   | -  |   |   | 118,248  |
| Other operating expenses                                                                                 |          | 63,699   |       |   | 16,200   |   |              | 1,297                                                                                      |                |   | -  |   |   | 81,196  |
|                                                                                                     |          |          |       |   |          |   |              |                                                                                            |                |   |   |   |   |   |
| Total benefits and expenses                                                                              |          | 162,824  |       |   | 108,380  |   |              | 1,281                                                                                           |                |   | -  |   |   | 272,485  |
|                                                                                                     |          |          |       |   |          |   |              |                                                                                            |                |   |   |   |   |   |
| Income from continuing operations before income  tax expense (benefit)                              |          | 572,564  |       |   | 5,350    |   |              | 5,959                                                                                      |                |   | -  |   |   | 583,873  |
|                                                                                                     |          |          |       |   |          |   |              |                                                                                            |                |   |   |   |   |   |
| Income tax expense (benefit)                                                                             |          | 116,984  |       |   | (3,518)       |   |              | 1,244                                                                                      |                |   | -  |   |   | 114,710  |
| Equity in the net income of subsidiaries                                                                 |          | 162,093  |       |   | -        |   |              | -                                                                                          |                |   | (162,093) |   |   | -  |
|                                                                                                     |          |          |       |   |          |   |              |                                                                                            |                |   |   |   |   |   |
| Net income from continuing operations                                                                    |          | 617,673  |       |   | 8,868    |   |              | 4,715                                                                                      |                |   | (162,093) |   |   | 469,163  |
|                                                                                                     |          |          |       |   |          |   |              |                                                                                            |                |   |   |   |   |   |
| Income from discontinued operations, net of tax                                                          |          | -        |       |   | -        |   |              | 148,510                                                                                    |                |   | -  |   |   | 148,510  |
|                                                                                                     |          |          |       |   |          |   |              |                                                                                            |                |   |   |   |   |   |
| Net income                                                                                               | $             | 617,673  |       | $      | 8,868    |   | $                 | 153,225                                                                                    |                | $ | (162,093) |   | $ | 617,673  |

| (1)   | SLUS as parent’s, SLNY’s and Other Subs’ net investment income includes an increase in the market value of trading fixed maturity securities of $876.3million, $75.6 million and $0.0 million, respectively, for the three-month period ended September 30, 2009. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                         | SLUSas Parent |             |  SLNY |   | OtherSubs       |   |  Elimination |          | ConsolidatedCompany |
|--------------------------------------------------------------|---------------|------------------|------------|--------|-----------------|--------|-------------------|---------------|---------------------|
| ASSETS                                                       |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Investments                                                  |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Available-for-sale fixed maturity securities at fair value   | $             | 1,251,993   |       | $      | 248,756    |   | $                 | 57,514   |                | $ | -  |   | $ | 1,558,263  |
| Trading fixed maturity securities at fair value              |          | 10,570,209  |       |   | 1,566,752  |   |              | -        |                |   | -  |   |   | 12,136,961  |
| Investment in subsidiaries                                   |          | 559,010     |       |   | -          |   |              | -        |                |   | (559,010) |   |   | -  |
| Mortgage loans                                               |          | 1,588,332   |       |   | 178,085    |   |              | 38,792   |                |   | -  |   |   | 1,805,209  |
| Derivative instruments – receivable                    |          | 333,398     |       |   | -          |   |              | -        |                |   | -  |   |   | 333,398  |
| Limited partnerships                                         |          | 44,694      |       |   | -          |   |              | -        |                |   | -  |   |   | 44,694  |
| Real estate                                                  |          | 162,182     |       |   | -          |   |              | 44,710   |                |   | -  |   |   | 206,892  |
| Policy loans                                                 |          | 687,394     |       |   | 1,840      |   |              | 20,826   |                |   | -  |   |   | 710,060  |
| Other invested assets                                        |          | 6,855       |       |   | 970        |   |              | -        |                |   | -  |   |   | 7,825  |
| Short-term investments                                       |          | 15,043      |       |   | -          |   |              | -        |                |   | -  |   |   | 15,043  |
| Cash and cash equivalents                                    |          | 1,277,441   |       |   | 102,968    |   |              | 14,268   |                |   | -  |   |   | 1,394,677  |
| Total investments and cash                                   |          | 16,496,551  |       |   | 2,099,371  |   |              | 176,110  |                |   | (559,010) |   |   | 18,213,022  |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Accrued investment income                                    |          | 183,035     |       |   | 21,298     |   |              | 1,703    |                |   | -  |   |   | 206,036  |
| Deferred policy acquisition costs and sales inducement asset |          | 2,053,788   |       |   | 140,118    |   |              | -        |                |   | -  |   |   | 2,193,906  |
| Value of business and customer renewals acquired             |          | 140,784     |       |   | 4,921      |   |              | -        |                |   | -  |   |   | 145,705  |
| Net deferred tax asset                                       |          | 388,426     |       |   | -          |   |              | 3,426    |                |   | (1,406) |   |   | 390,446  |
| Goodwill                                                     |          | -           |       |   | 7,299      |   |              | -        |                |   | -  |   |   | 7,299  |
| Receivable for investments sold                              |          | 114,367     |       |   | 16,447     |   |              | 560      |                |   | -  |   |   | 131,374  |
| Reinsurance receivable                                       |          | 2,198,518   |       |   | 169,843    |   |              | 70       |                |   | -  |   |   | 2,368,431  |
| Other assets                                                 |          | 99,755      |       |   | 34,827     |   |              | 3,162    |                |   | (7,365) |   |   | 130,379  |
| Separate account assets                                      |          | 24,155,370  |       |   | 1,164,448  |   |              | 38,582   |                |   | -  |   |   | 25,358,400  |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Total assets                                                 | $             | 45,830,594  |       | $      | 3,658,572  |   | $                 | 223,613  |                | $ | (567,781) |   | $ | 49,144,998  |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| LIABILITIES                                                  |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Contractholder deposit funds and other policy liabilities    | $             | 13,947,082  |       | $      | 1,643,651  |   | $                 | 25,179   |                | $ | -  |   | $ | 15,615,912  |
| Future contract and policy benefits                          |          | 742,500     |       |   | 113,971    |   |              | 206      |                |   | -  |   |   | 856,677  |
| Payable for investments purchased                            |          | 185,308     |       |   | 5,445      |   |              | -        |                |   | -  |   |   | 190,753  |
| Accrued expenses and taxes                                   |          | 73,398      |       |   | 6,376      |   |              | 1,751    |                |   | (7,365) |   |   | 74,160  |
| Deferred income tax liability                                |          | -           |       |   | 1,406      |   |              | -        |                |   | (1,406) |   |   | -  |
| Debt payable to affiliates                                   |          | 783,000     |       |   | -          |   |              | -        |                |   | -  |   |   | 783,000  |
| Reinsurance payable                                          |          | 1,997,839   |       |   | 242,544    |   |              | 36       |                |   | -  |   |   | 2,240,419  |
| Derivative instruments – payable                       |          | 500,880     |       |   | -          |   |              | -        |                |   | -  |   |   | 500,880  |
| Other liabilities                                            |          | 204,971     |       |   | 54,048     |   |              | 25,532   |                |   | -  |   |   | 284,551  |
| Separate account liabilities                                 |          | 24,155,370  |       |   | 1,164,448       |   |              | 38,582   |                |   | -  |   |   | 25,358,400  |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Total liabilities                                            | $             | 42,590,348  |       | $      | 3,231,889  |   | $                 | 91,286   |                | $ | (8,771) |   | $ | 45,904,752  |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| STOCKHOLDER’S EQUITY                                   |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Common stock                                                 | $             | 6,437       |       | $      | 2,100      |   | $                 | 2,542    |                | $ | (4,642) |   | $ | 6,437  |
| Additional paid-in capital                                   |          | 3,927,886   |       |   | 389,963    |   |              | 108,594  |                |   | (498,557) |   |   | 3,927,886  |
| Accumulated other comprehensive income                       |          | 76,773      |       |   | 10,062     |   |              | 2,531    |                |   | (12,593) |   |   | 76,773  |
| (Accumulated deficit) retained earnings                      |          | (770,850)        |       |   | 24,558     |   |              | 18,660   |                |   |  (43,218) |   |   | (770,850) |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Total stockholder’s equity                             |          | 3,240,246   |       |   | 426,683    |   |              | 132,327  |                |   | (559,010) |   |   | 3,240,246  |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Total liabilities and stockholder’s equity             | $             | 45,830,594  |       | $      | 3,658,572  |   | $                 | 223,613  |                | $ | (567,781) |   | $ | 49,144,998  |

----

|                                                         | SLUSas Parent |             |  SLNY |   | OtherSubs       |   |  Elimination |          | ConsolidatedCompany |
|--------------------------------------------------------------|---------------|------------------|------------|--------|-----------------|--------|-------------------|---------------|---------------------|
| ASSETS                                                       |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Investments                                                  |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Available-for-sale fixed maturity securities at fair value   | $             | 959,156     |       | $      | 164,158    |   | $                 | 52,202   |                | $ | -  |   | $ | 1,175,516  |
| Trading fixed maturity securities at fair value              |          | 9,724,195   |       |   | 1,406,327  |   |              | -        |                |   | -  |   |   | 11,130,522  |
| Investment in subsidiaries                                   |          | 518,560     |       |   | -          |   |              | -        |                |   | (518,560) |   |   | -  |
| Mortgage loans                                               |          | 1,736,358   |       |   | 161,498    |   |              | 14,105   |                |   | -  |   |   | 1,911,961  |
| Derivative instruments – receivable                    |          | 259,227     |       |   | -          |   |              | -        |                |   | -  |   |   | 259,227  |
| Limited partnerships                                         |          | 51,656      |       |   | -          |   |              | -        |                |   | -  |   |   | 51,656  |
| Real estate                                                  |          | 158,170     |       |   | -          |   |              | 44,107   |                |   | -  |   |   | 202,277  |
| Policy loans                                                 |          | 700,974     |       |   | 270        |   |              | 21,346   |                |   | -  |   |   | 722,590  |
| Other invested assets                                        |          | 46,410      |       |   | 542        |   |              | 469      |                |   | -  |   |   | 47,421  |
| Short-term investments                                       |          | 1,208,320   |       |   | 58,991     |   |              | -        |                |   | -  |   |   | 1,267,311  |
| Cash and cash equivalents                                    |          | 1,616,991   |       |   | 175,322    |   |              | 11,895   |                |   | -  |   |   | 1,804,208  |
| Total investments and cash                                   |          | 16,980,017  |       |   | 1,967,108  |   |              | 144,124  |                |   | (518,560) |   |   | 18,572,689  |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Accrued investment income                                    |          | 211,725     |       |   | 17,051     |   |              | 1,815    |                |   | -  |   |   | 230,591  |
| Deferred policy acquisition costs and sales inducement asset |          | 1,989,676   |       |   | 183,966    |   |              | -        |                |   | -  |   |   | 2,173,642  |
| Value of business and customer renewals acquired             |          | 163,079     |       |   | 5,766      |   |              | -        |                |   | -  |   |   | 168,845  |
| Net deferred tax asset                                       |          | 539,323     |       |   | 5,830      |   |              | 4,611    |                |   | -  |   |   | 549,764  |
| Goodwill                                                     |          | -           |       |   | 7,299      |   |              | -        |                |   | -  |   |   | 7,299  |
| Receivable for investments sold                              |          | 11,969      |       |   | 642        |   |              | -        |                |   | -  |   |   | 12,611  |
| Reinsurance receivable                                       |          | 2,232,651   |       |   | 117,460    |   |              | 96       |                |   | -  |   |   | 2,350,207  |
| Other assets                                                 |          | 114,177     |       |   | 69,161     |   |              | 1,975    |                |   | (1,350) |   |   | 183,963  |
| Separate account assets                                      |          | 22,293,989  |       |   | 989,939    |   |              | 42,395   |                |   | -  |   |   | 23,326,323  |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Total assets                                                 | $             | 44,536,606  |       | $      | 3,364,222  |   | $                 | 195,016  |                | $ | (519,910) |   | $ | 47,575,934  |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| LIABILITIES                                                  |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Contractholder deposit funds and other policy liabilities    | $             | 15,078,201  |       | $      | 1,605,038  |   | $                 | 26,350   |                | $ | -  |   | $ | 16,709,589  |
| Future contract and policy benefits                          |          | 716,176     |       |   | 99,255     |   |              | 207      |                |   | -  |   |   | 815,638  |
| Payable for investments purchased                            |          | 87,554      |       |   | 577        |   |              | -        |                |   | -  |   |   | 88,131  |
| Accrued expenses and taxes                                   |          | 51,605      |       |   | 10,202     |   |              | 1,446    |                |   | (1,350) |   |   | 61,903  |
| Debt payable to affiliates                                   |          | 883,000     |       |   | -          |   |              | -        |                |   | -  |   |   | 883,000  |
| Reinsurance payable                                          |          | 2,040,864   |       |   | 190,863    |   |              | 37       |                |   | -  |   |   | 2,231,764  |
| Derivative instruments – payable                       |          | 572,910     |       |   | -          |   |              | -        |                |   | -  |   |   | 572,910  |
| Other liabilities                                            |          | 205,855     |       |   | 48,608     |   |              | 25,761   |                |   | -  |   |   | 280,224  |
| Separate account liabilities                                 |          | 22,293,989  |       |   | 989,939    |   |              | 42,395   |                |   | -  |   |   | 23,326,323  |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Total liabilities                                            | $             | 41,930,154  |       | $      | 2,944,482  |   | $                 | 96,196   |                | $ | (1,350) |   | $ | 44,969,482  |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| STOCKHOLDER’S EQUITY                                   |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Common stock                                                 | $             | 6,437       |       | $      | 2,100      |   | $                 | 2,542    |                | $ | (4,642) |   | $ | 6,437  |
| Additional paid-in capital                                   |          | 3,527,677   |       |   | 389,963    |   |              | 78,409   |                |   | (468,372) |   |   | 3,527,677  |
| Accumulated other comprehensive income (loss)                |          | 35,244      |       |   | (3,039)         |   |              | 701      |                |   | 2,338  |   |   | 35,244  |
| (Accumulated deficit) retained earnings                      |          | (962,906)        |       |   | 30,716     |   |              | 17,168   |                |   | (47,884) |   |   | (962,906) |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Total stockholder’s equity                             |          | 2,606,452   |       |   | 419,740    |   |              | 98,820   |                |   | (518,560) |   |   | 2,606,452  |
|                                                         |          |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Total liabilities and stockholder’s equity             | $             | 44,536,606  |       | $      | 3,364,222  |   | $                 | 195,016       |                | $ | (519,910) |   | $ | 47,575,934  |

----

|                                                                                                 | SLUSas Parent |            |  SLNY |   | OtherSubs     |   |  Elimination |         | ConsolidatedCompany |
|------------------------------------------------------------------------------------------------------|---------------|-----------------|------------|--------|---------------|--------|-------------------|--------------|---------------------|
|                                                                                                 |          |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Cash Flows From Operating Activities:                                                                |          |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Net income (loss)                                                                                    | $             | 192,056    |       | $      | (6,158)       |   | $                 | 1,492   |                | $ | 4,666  |   | $ | 192,056  |
| Adjustments to reconcile net income (loss) to net   cash provided by operating activities: |          |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Net amortization of premiums on investments                                                          |          | 16,146     |       |   | 2,996    |   |              | 578     |                |   | -  |   |   | 19,720  |
| Amortization of DAC, VOBA and VOCRA                                                                  |          | 119,133    |       |   | 58,301   |   |              | -       |                |   | -  |   |   | 177,434  |
| Depreciation and amortization                                                                        |          | 1,546      |       |   | 234      |   |              | 616     |                |   | -  |   |   | 2,396  |
| Net losses on derivatives                                                                            |          | 483,308    |       |   | 42,398   |   |              | -       |                |   | -  |   |   | 525,706  |
| Net realized (gains) losses and OTTI credit losses   on available-for-sale investments     |          | (16,733)        |       |   | 429      |   |              | 330     |                |   | -  |   |   | (15,974) |
| Net increase in fair value of trading investments                                                    |          | (686,458)       |       |   | (62,265)      |   |              | -       |                |   | -  |   |   | (748,723) |
| Net realized losses (gains) on trading investments                                                   |          | 44,220     |       |   | (11,766)      |   |              | -       |                |   | -  |   |   | 32,454  |
| Undistributed loss on private equity limited   partnerships                                |          | 399        |       |   | -        |   |              | -       |                |   | -  |   |   | 399  |
| Interest credited to contractholder deposits                                                         |          | 263,861    |       |   | 44,133   |   |              | 699     |                |   | -  |   |   | 308,693  |
| Deferred federal income taxes                                                                        |          | 136,574    |       |   | 182      |   |              | 200     |                |   | -  |   |   | 136,956  |
| Equity in net loss of subsidiaries                                                                   |          | 4,666      |       |   |          |   |              | -       |                |   | (4,666) |   |   | -  |
| Changes in assets and liabilities:                                                                   |          |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Additions to DAC, SIA, VOBA and VOCRA                                                                |          | (175,325)       |       |   | (15,700)      |   |              | -       |                |   | -  |   |   | (191,025) |
| Accrued investment income                                                                            |          | 28,690     |       |   | (4,247)       |   |              | 112     |                |   | -  |   |   | 24,555  |
| Net change in reinsurance receivable/payable                                                         |          | 87,991     |       |   | 2,716    |   |              | 25      |                |   | -  |   |   | 90,732  |
| Future contract and policy benefits                                                                  |          | 26,324     |       |   | 14,716   |   |              | (1)          |                |   | -  |   |   | 41,039  |
| Other, net                                                                                           |          | 77,619     |       |   | 39,274   |   |              | (1,319)      |                |   | -  |   |   | 115,574  |
|                                                                                                 |          |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Net cash provided by operating activities                                                            |          | 604,017    |       |   | 105,243  |   |              | 2,732   |                |   | -  |   |   | 711,992  |
|                                                                                                 |          |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Cash Flows From Investing Activities:                                                                |          |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Sales, maturities and repayments of:                                                                 |          |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Available-for-sale fixed maturity securities                                                         |          | 330,126    |       |   | 38,937   |   |              | 13,737  |                |   | -  |   |   | 382,800  |
| Trading fixed maturity securities                                                                    |          | 2,492,639  |       |   | 612,870  |   |              | (560)        |                |   | -  |   |   | 3,104,949  |
| Mortgage loans                                                                                       |          | 138,734    |       |   | 8,036    |   |              | 2,683   |                |   | (30,042) |   |   | 119,411  |
| Real estate                                                                                          |          | -          |       |   | 1,000    |   |              | 1,170   |                |   | (2,170) |   |   | -  |
| Other invested assets                                                                                |          | (104,102)       |       |   | 815      |   |              | 501     |                |   |   |   |   | (102,786) |
| Purchases of:                                                                                        |          |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Available-for-sale fixed maturity securities                                                         |          | (557,511)       |       |   | (102,654)     |   |              | (15,382)     |                |   |   |   |   | (675,547) |
| Trading fixed maturity securities                                                                    |          | (2,747,460)     |       |   | (712,640)     |   |              | -       |                |   | -  |   |   | (3,460,100) |
| Mortgage loans                                                                                       |          | (43)            |       |   | (28,441)      |   |              | (31,171)     |                |   | 30,042  |   |   | (29,613) |
| Real estate                                                                                          |          | (5,293)         |       |   | -        |   |              | (379)        |                |   | 2,170  |   |   | (3,502) |
| Other invested assets                                                                                |          | (47,191)        |       |   | (333)         |   |              | -       |                |   | -  |   |   | (47,524) |
| Net change in other investments                                                                      |          | -          |       |   | -        |   |              | -       |                |   | -  |   |   | -  |
| Net change in policy loans                                                                           |          | 13,580     |       |   | (1,570)       |   |              | 520     |                |   | -  |   |   | 12,530  |
| Net change in short-term investments                                                                 |          | 1,193,277  |       |   | 58,991   |   |              | -       |                |   | -  |   |   | 1,252,268  |
|                                                                                                 |          |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Net cash provided by (used in) investing activities                                                  | $             | 706,756    |       | $      | (124,989)     |   | $                 | (28,881)     |                | $ | -  |   | $ | 552,886  |

----

|                                                | SLUSas Parent |            | SLNY   |   | OtherSubs     |   | Elimination |         | ConsolidatedCompany |
|-----------------------------------------------------|---------------|-----------------|--------|--------|---------------|--------|-------------|--------------|---------------------|
|                                                |          |            |   |   |          |   |        |         |                |   |   |   |   |   |
| Cash Flows From Financing Activities:               |          |            |   |   |          |   |        |         |                |   |   |   |   |   |
| Additions to contractholder deposit funds           | $             | 826,639    |   | $      | 136,151  |   | $           | -       |                | $ | -  |   | $ | 962,790  |
| Withdrawals from contractholder deposit funds       |          | (2,730,167)     |   |   | (185,396)     |   |        | (1,869)      |                |   | -  |   |   | (2,917,432) |
| Repayment of debt                                   |          | (100,000)       |   |   | -        |   |        | -       |                |   | -  |   |   | (100,000) |
| Capital contribution to subsidiaries                |          | (30,185)        |   |   | -        |   |        | -       |                |   | 30,185  |   |   | -  |
| Capital contribution from Parent                    |          | 400,000    |   |   | -        |   |        | 30,185  |                |   | (30,185) |   |   | 400,000  |
| Other, net                                          |          | (16,610)        |   |   | (3,363)       |   |        | 206     |                |   | -  |   |   | (19,767) |
|                                                |          |            |   |   |          |   |        |         |                |   |   |   |   |   |
| Net cash (used in) provided by financing activities |          | (1,650,323)     |   |   | (52,608)      |   |        | 28,522  |                |   | -  |   |   | (1,674,409) |
|                                                |          |            |   |   |          |   |        |         |                |   |   |   |   |   |
| Net change in cash and cash equivalents             |          | (339,550)       |   |   | (72,354)      |   |        | 2,373   |                |   | -  |   |   | (409,531) |
|                                                |          |            |   |   |          |   |        |         |                |   |   |   |   |   |
| Cash and cash equivalents, beginning of period      |          | 1,616,991  |   |   | 175,322  |   |        | 11,895  |                |   | -  |   |   | 1,804,208  |
|                                                |          |            |   |   |          |   |        |         |                |   |   |   |   |   |
| Cash and cash equivalents, end of period            | $             | 1,277,441  |   | $      | 102,968  |   | $           | 14,268  |                | $ | -  |   | $ | 1,394,677  |
|                                                |          |            |   |   |          |   |        |         |                |   |   |   |   |   |

----

|                                                                                       | SLUSas Parent |            |  SLNY |   | OtherSubs     |   |  Elimination |          | ConsolidatedCompany |
|--------------------------------------------------------------------------------------------|---------------|-----------------|------------|--------|---------------|--------|-------------------|---------------|---------------------|
|                                                                                       |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Cash Flows From Operating Activities:                                                      |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Net income                                                                                 | $             | 1,108,597  |       | $      | 67,238   |   | $                 | 149,073  |                | $ | (216,311) |   | $ | 1,108,597  |
| Adjustments to reconcile net income to net cashprovided by (used in) operating activities: |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Net amortization of premiums on investments                                                |          | 7,724      |       |   | 212      |   |              | 15       |                |   | -  |   |   | 7,951  |
| Amortization of DAC, VOBA and VOCRA                                                        |          | 434,372    |       |   | 85,696   |   |              | -        |                |   | -  |   |   | 520,068  |
| Depreciation and amortization                                                              |          | 3,447      |       |   | 233      |   |              | 603      |                |   | -  |   |   | 4,283  |
| Net loss (gains) on derivatives                                                            |          | 97,978     |       |   | (5,278)       |   |              | 1        |                |   | -  |   |   | 92,701  |
| Net realized losses and OTTI credit losses onavailable-for-sale investments                |          | 12,127     |       |   | 178      |   |              | 930      |                |   | -  |   |   | 13,235  |
| Net increase in fair value of trading investments                                          |          | (1,724,398)     |       |   | (168,863)     |   |              | -        |                |   | -  |   |   | (1,893,261) |
| Net realized losses on trading investments                                                 |          | 257,385    |       |   | 10,751   |   |              | -        |                |   | -  |   |   | 268,136  |
| Undistributed losses in private equity limitedpartnerships                                 |          | 11,477     |       |   | -        |   |              | -        |                |   | -  |   |   | 11,477  |
| Interest credited to contractholder deposits                                               |          | 255,942    |       |   | 35,261   |   |              | 877      |                |   | -  |   |   | 292,080  |
| Deferred federal income taxes                                                              |          | 302,403    |       |   | 21,532   |   |              | 631      |                |   | -  |   |   | 324,566  |
| Equity in net income of subsidiaries                                                       |          | (216,311)       |       |   | -        |   |              | -        |                |   | 216,311  |   |   | -  |
| Changes in assets and liabilities:                                                         |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Additions to DAC, SIA, VOBA and VOCRA                                                      |          | (242,545)       |       |   | (37,282)      |   |              | -        |                |   | -  |   |   | (279,827) |
| Accrued investment income                                                                  |          | 48,853     |       |   | (422)         |   |              | 211      |                |   | -  |   |   | 48,642  |
| Net change in reinsurance receivable/payable                                               |          | 108,502    |       |   | (7,844)       |   |              | (4,462)       |                |   | -  |   |   | 96,196  |
| Future contract and policy benefits                                                        |          | (114,736)       |       |   | 3,490    |   |              | (1)           |                |   | -  |   |   | (111,247) |
| Other, net                                                                                 |          | 36,786     |       |   | (147,857)     |   |              | 563      |                |   | -  |   |   | (110,508) |
| Adjustments related to discontinued operations                                             |          | -          |       |   | -        |   |              | (4,890)       |                |   | -  |   |   | (4,890) |
|                                                                                       |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Net cash provided by (used in) operating activities                                        |          | 387,603    |       |   | (142,955)     |   |              | 143,551  |                |   | -  |   |   | 388,199  |
|                                                                                       |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Cash Flows From Investing Activities:                                                      |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Sales, maturities and repayments of:                                                       |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Available-for-sale fixed maturity securities                                               |          | 34,569     |       |   | 4,102    |   |              | 1,435    |                |   | -  |   |   | 40,106  |
| Trading fixed maturity securities                                                          |          | 965,384    |       |   | 209,827  |   |              | 27,957   |                |   | -  |   |   | 1,203,168  |
| Mortgage loans                                                                             |          | 119,355    |       |   | 7,503    |   |              | (36)          |                |   | (18,357) |   |   | 108,465  |
| Other invested assets                                                                      |          | (125,692)       |       |   | 1,587    |   |              | -        |                |   | -  |   |   | (124,105) |
| Purchases of:                                                                              |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Available-for-sale fixed maturity securities                                               |          | (333,234)       |       |   | (3,578)       |   |              | (311)         |                |   | -  |   |   | (337,123) |
| Trading fixed maturity securities                                                          |          | (50,392)        |       |   | (419,107)     |   |              | (1,634)       |                |   | -  |   |   | (471,133) |
| Mortgage loans                                                                             |          | (9,902)         |       |   | (2,125)       |   |              | (18,389)      |                |   | 18,357  |   |   | (12,059) |
| Real estate                                                                                |          | (904)           |       |   | -        |   |              | (647)         |                |   | -  |   |   | (1,551) |
| Other invested assets                                                                      |          | (97,908)        |       |   | (15)          |   |              | -        |                |   | -  |   |   | (97,923) |
| Net change in other investments                                                            |          | (109,307)       |       |   | 8,831    |   |              | -        |                |   | -  |   |   | (100,476) |
| Net change in policy loans                                                                 |          | 7,565      |       |   | (52)          |   |              | 2,466    |                |   | -  |   |   | 9,979  |
| Net change in short-term investments                                                       |          | 98,999     |       |   | 115,969  |   |              | 14,694   |                |   | -  |   |   | 229,662  |
|                                                                                       |          |            |       |   |          |   |              |          |                |   |   |   |   |   |
| Net cash provided by (used in) investing activities                                        | $             | 498,533    |       | $      | (77,058)      |   | $                 | 25,535   |                | $ | -  |   | $ | 447,010  |

----

|                                           | SLUSas Parent |            | SLNY   |   | OtherSubs     |   | Elimination |          | ConsolidatedCompany |
|------------------------------------------------|---------------|-----------------|--------|--------|---------------|--------|-------------|---------------|---------------------|
|                                           |          |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Cash Flows From Financing Activities:          |          |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Additions to contractholder deposit funds      | $             | 1,859,301  |   | $      | 416,555  |   | $           | 26,211   |                | $ | -  |   | $ | 2,302,067  |
| Withdrawals from contractholder deposit funds  |          | (2,123,945)     |   |   | (183,188)     |   |        | (6,526)       |                |   | -  |   |   | (2,313,659) |
| Capital contribution to subsidiaries           |          | (58,910)        |   |   | -        |   |        | -        |                |   | 58,910  |   |   | -  |
| Capital contribution from Parent               |          | 748,652    |   |   | -        |   |        | 58,910   |                |   | (58,910) |   |   | 748,652  |
| Debt proceeds                                  |          | -          |   |   | -        |   |        | 100,000  |                |   | -  |   |   | 100,000  |
| Other, net                                     |          | (37,135)        |   |   | (7,415)       |   |        | -        |                |   | -  |   |   | (44,550) |
|                                           |          |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Net cash provided by financing activities      |          | 387,963    |   |   | 225,952  |   |        | 178,595  |                |   | -  |   |   | 792,510  |
|                                           |          |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Net change in cash and cash equivalents        |          | 1,274,099  |   |   | 5,939    |   |        | 347,681  |                |   | -  |   |   | 1,627,719  |
|                                           |          |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Cash and cash equivalents, beginning of period |          | 733,518    |   |   | 261,989  |   |        | 29,161   |                |   | -  |   |   | 1,024,668  |
|                                           |          |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Cash and cash equivalents, end of period       | $             | 2,007,617  |   | $      | 267,928  |   | $           | 376,842  |                | $ | -  |   | $ | 2,652,387  |
|                                           |          |            |   |   |          |   |        |          |                |   |   |   |   |   |

----

| Ø   | Deferred policy acquisition costs (“DAC”), including sales inducement asset (“SIA”); |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| Ø   | Value of business acquired (“VOBA”); |
|--------------------|--------------------------------------------------|

| Ø   | Value of customer renewals acquired (“VOCRA”); |
|--------------------|------------------------------------------------------------|

| Ø   | Derivative instruments; |
|--------------------|-------------------------|

| Ø   | Fair value of financial instruments; |
|--------------------|--------------------------------------|

| Ø   | Policy liabilities and accruals; |
|--------------------|----------------------------------|

| Ø   | Other-than-temporary impairments (“OTTI”) of investments; |
|--------------------|-----------------------------------------------------------------------|

| Ø   | Goodwill valuation; |
|--------------------|---------------------|

| Ø   | Allowance for loan loss; |
|--------------------|--------------------------|

| Ø   | Valuation allowance on deferred tax assets; and |
|--------------------|-------------------------------------------------|

| Ø   |  Provisions for income taxes. |
|--------------------|------------------------------------|

----

|                             | 2009   |
|----------------------------------|--------|
|                             |   |   |
| Total revenues                   | $      | 284,217 |
| Total benefits and expenses      |   | 77,395 |
| Income before income tax expense |   | 206,822 |
|                             |   |   |
| Net income                       | $      | 144,726 |

----

|                       |   | 2010                                          |   | 2009                                         |
|----------------------------|--------|-----------------------------------------------|--------|----------------------------------------------|
|                       |   |                                          |   |                                         |
| Interest rate contracts    |   | $      (96,191) |   | $     132,861  |
| Foreign currency contracts |   | (7,480)                                       |   | (7,580)                                      |
| Equity contracts           |   | (32,856)                                      |   | (58,355)                                     |
| Credit contracts           |   | 3,716                                    |   | (5,864)                                      |
| Futures contracts          |   | (9,531)                                       |   | (246,742)                                    |
| Embedded derivatives       |   | (480,722)                                     |   | 2,801                                   |
| Net derivative loss        |   | $    (623,064)            |   | $    (182,879)           |

----

----

----

----

----

----

|                             | 2010   |      | 2009   |
|----------------------------------|--------|-----------|--------|
|                             |   |      |   |   |   |
| Total revenues                   | $      | 1,080,834 |   | $ | 2,308,049  |
| Total benefits and expenses      |   | 760,992   |   |   | 976,677  |
| Income before income tax expense |   | 319,842   |   |   | 1,331,372  |
|                             |   |      |   |   |   |
| Net income                       | $      | 221,310   |   | $ | 879,559  |

----

----

|                                                          |  2010                                                                                                   |   |  2009                                                                                       |
|---------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|
| Total revenues                                                | $              43,035             |   | $            60,321             |
| Total benefits and expenses                                   | 38,563                                                                                                  |   | 30,340                                                                                      |
| Income before income tax expense                              | 4,472                                                                                                   |   | 29,981                                                                                      |
|                                                          |                                                                                                         |   |                                                                                             |
| Net income from continuing     operations | $                3,026  |   | $              9,301  |

----

|                             | 2010                                                                                                         |   | 2009                                                                                  |
|----------------------------------|--------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|
| Total revenues                   | $              96,555             |   | $          104,252             |
| Total benefits and expenses      | 90,982                                                                                                  |   | 86,051                                                                           |
| Income before income tax expense | 5,573                                                                                                   |   | 18,201                                                                           |
|                             |                                                                                                         |   |                                                                                  |
| Net income                       | $                3,632  |   | $            11,830  |

----

|                           | 2010                                                                              |   | 2009                                                                                  |
|--------------------------------|-----------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|
| Total revenues                 | $            (31,616) |   | $           (11,177)           |
| Total benefits and expenses    | 15,127                                                                       |   | 15,913                                                                           |
| Loss before income tax benefit | (46,743)                                                                          |   | (27,090)                                                                              |
|                           |                                                                              |   |                                                                                  |
| Net (loss) income              | $            (35,912) |   | $            63,181  |

----

----

| 31.1   | Certification pursuant to Rule 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                         |
| 31.2   | Certification pursuant to Rule 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|   |                                                                                                                         |
| 32.1   | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-OxleyAct of 2002        |
|   |                                                                                                                         |
| 32.2   | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-OxleyAct of 2002        |

----

|   | Sun Life Assurance Company of Canada (U.S.)(Registrant) |
|--------|---------------------------------------------------------|

| November 15, 2010 | /s/ Westley V. Thompson                  |
|-------------------|------------------------------------------|
| Date              | Westley V. Thompson, President, SLF U.S. |
|              | (Principal Executive Officer)            |

| November 15, 2010 | /s/ Ronald H. Friesen                                                |
|-------------------|----------------------------------------------------------------------|
| Date              | Ronald H. Friesen, Senior Vice President and Chief Financial Officer |
|              | (Principal Financial Officer)                                        |

----