----

----

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| For      the quarterly period endedMarch      31, 2009 | 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, and      333-156308 |
|--------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 three-month periods ended      March31,      2009 and 2008 (Unaudited) |  3 |
|                                           |   |   |
|                                           | Condensed      Consolidated Balance Sheets as of March 31, 2009 and December 31,      2008(Unaudited) | 4 |
|                                           |   |   |
|                                           | Condensed      Consolidated Statements of Comprehensive Income (Loss) for the      three-monthperiods      ended March 31, 2009 and 2008 (Unaudited) |  5 |
|                                           |   |   |
|                                           | Condensed      Consolidated Statements of Changes in Stockholder’s Equity for the      three-monthperiods      ended March 31, 2009 and 2008 (Unaudited) |  6 |
|                                           |   |   |
|                                           | Condensed      Consolidated Statements of Cash Flows for the three-month periods ended      March31,      2009 and 2008 (Unaudited) |  7 |
|                                           |   |   |
|                                           | Notes      to the Unaudited Condensed Consolidated Financial    Statements | 9 |
|                                           |   |   |
| Item      2.                                   | Management's      Discussion and Analysis of Financial Position and Results of      Operations | 55 |
|                                           |   |   |
| Item      3.                                   | Quantitative      and Qualitative Disclosures About Market Risk | 78 |
|                                           |   |   |
| Item      4.                                   | Controls      and Procedures | 78 |

| PART      II – OTHER INFORMATION |
|----------------------------------------|
|                                   |   |   |
| Item      1.                           | Legal      Proceedings | 78 |
|                                   |   |   |
| Item      1A.                          | Risk      Factors | 78 |
|                                   |   |   |
| Item      2.                           | Unregistered      Sales of Equity Securities and Use of Proceeds | 79 |
|                                   |   |   |
| Item      3.                           | Defaults      Upon Senior Securities | 79 |
|                                   |   |   |
| Item      4.                           | Submission      of Matters to a Vote of Security Holders | 79 |
|                                   |   |   |
| Item      5.                           | Other      Information | 79 |
|                                   |   |   |
| Item      6.                           | Exhibits | 80 |

----

|                                                                                                                | Unaudited  |
|---------------------------------------------------------------------------------------------------------------------|------------|
|                                                                                                                |  2009 |   |  2008 |
|                                                                                                                |       |   |   |   |   |
| Revenues                                                                                                            |       |   |   |   |   |
|                                                                                                                |       |   |   |   |   |
| Premiums      and annuity considerations                                                                            | $          | 32,540 |   | $ | 29,641  |
| Net      investment income (loss) (1)                                                                               |       | 17,494 |   |   | (276,267) |
| Net      derivative income (loss) (2)                                                                               |       | 143,299 |   |   | (80,200) |
| Net      realized investment (losses) gains                                                                         |       | (1,897) |   |   | 2,734  |
| Fee      and other income                                                                                           |       | 37,627 |   |   | 126,843  |
|                                                                                                                |       |   |   |   |   |
| Total      revenues                                                                                                 |       | 229,063 |   |   | (197,249) |
|                                                                                                                |       |   |   |   |   |
| Benefits      and Expenses                                                                                          |       |   |   |   |   |
|                                                                                                                |       |   |   |   |   |
| Interest      credited                                                                                              |       | 121,035 |   |   | 149,127  |
| Interest      expense                                                                                               |       | 19,319 |   |   | 31,077  |
| Policyowner      benefits                                                                                           |       | 92,215 |   |   | 70,413  |
| Amortization      of deferred policy acquisition costsand      value of business and customer renewals acquired (3) |       | (121,890) |   |   | (272,647) |
| Other      operating expenses                                                                                       |       | 51,309 |   |   | 77,541  |
|                                                                                                                |       |   |   |   |   |
| Total      benefits and expenses                                                                                    |       | 161,988 |   |   | 55,511  |
|                                                                                                                |       |   |   |   |   |
| Income      (loss) before income tax expense (benefit)                                                              |       | 67,075 |   |   | (252,760) |
|                                                                                                                |       |   |   |   |   |
| Income      tax expense (benefit)                                                                                   |       | 17,461 |   |   | (93,233) |
|                                                                                                                |       |   |   |   |   |
| Net      income (loss)                                                                                              | $          | 49,614 |   | $ | (159,527) |

|   | (1)Net      investment income (loss) includes a decrease in market value of trading      fixed maturity securities of $110.6 million and $594.2 million for the      three-month periods ended March 31, 2009 and 2008,      respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)Net      derivative income (loss) for the three-month period ended March 31, 2008      includes $166.1 million of income related to the Company’s adoption of      Financial Accounting Standards Board (“FASB”) Statement of Financial      Accounting Standards (“SFAS”) No. 157, “Fair Value Measurement,” which is      further discussed in Note 4. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3)Amortization      of deferred policy acquisition costs and value of business and customer      renewals acquired for the three-month period ended March 31, 2008      includes $3.2 million of expense related to the Company’s adoption of SFAS      No. 157, which is further discussed in Note4. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                   | Unaudited                 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|
| ASSETS                                                                                                                                                                 |  March      31, 2009 |   |  December      31, 2008 |
| Investments                                                                                                                                                            |                      |   |   |   |   |
| Available-for-sale      fixed maturities at fair value (amortized cost of $856,685and     $782,861      in 2009 and 2008, respectively)       | $                         | 700,419 |   | $ | 674,020  |
| Trading      fixed maturities at fair value (amortized cost of $14,660,014      and     $14,909,429      in 2009 and 2008, respectively)      |                      | 11,401,635 |   |   | 11,762,146  |
| Mortgage      loans                                                                                                                                                    |                      | 2,050,851 |   |   | 2,083,003  |
| Derivative      instruments – receivable                                                                                                                         |                      | 563,679 |   |   | 727,103  |
| Limited      partnerships                                                                                                                                              |                      | 57,158 |   |   | 78,289  |
| Real      estate                                                                                                                                                       |                      | 200,584 |   |   | 201,470  |
| Policy      loans                                                                                                                                                      |                      | 725,023 |   |   | 729,407  |
| Other      invested assets                                                                                                                                             |                      | 30,363 |   |   | 211,431 |
| Cash      and cash equivalents                                                                                                                                         |                      | 2,802,343 |   |   | 1,624,149  |
| Total      investments and cash                                                                                                                                        |                      | 18,532,055 |   |   | 18,091,018  |
|                                                                                                                                                                   |                      |   |   |   |   |
| Accrued      investment income                                                                                                                                         |                      | 249,730 |   |   | 282,564  |
| Deferred      policy acquisition costs                                                                                                                                 |                      | 3,098,811 |   |   | 2,862,401  |
| Value      of business and customer renewals acquired                                                                                                                  |                      | 164,074 |   |   | 179,825  |
| Net      deferred tax asset                                                                                                                                            |                      | 849,328 |   |   | 856,845  |
| Goodwill                                                                                                                                                               |                      | 7,299 |   |   | 7,299  |
| Receivable      for investments sold                                                                                                                                   |                      | 4,316 |   |   | 7,548  |
| Reinsurance      receivable                                                                                                                                            |                      | 3,285,263 |   |   | 3,076,615  |
| Other      assets                                                                                                                                                      |                      | 211,246 |   |   | 222,840  |
| Separate      account assets                                                                                                                                           |                      | 19,876,854 |   |   | 20,531,724  |
|                                                                                                                                                                   |                      |   |   |   |   |
| Total      assets                                                                                                                                                      | $                         | 46,278,976 |   | $ | 46,118,679  |
|                                                                                                                                                                   |                      |   |   |   |   |
| LIABILITIES                                                                                                                                                            |                      |   |   |   |   |
|                                                                                                                                                                   |                      |   |   |   |   |
| Contractholder      deposit funds and other policy liabilities                                                                                                         | $                         | 17,703,855 |   | $ | 17,545,721  |
| Future      contract and policy benefits                                                                                                                               |                      | 1,039,209 |   |   | 1,014,688  |
| Payable      for investments purchased                                                                                                                                 |                      | 166,150 |   |   | 363,513  |
| Accrued      expenses and taxes                                                                                                                                        |                      | 91,866 |   |   | 118,671  |
| Debt      payable to affiliates                                                                                                                                        |                      | 2,048,000 |   |   | 1,998,000  |
| Reinsurance      payables                                                                                                                                              |                      | 2,042,537 |   |   | 1,650,821  |
| Derivative      instruments – payable                                                                                                                            |                      | 1,225,543 |   |   | 1,494,341  |
| Other      liabilities                                                                                                                                                 |                      | 645,799 |   |   | 605,945  |
| Separate      account liabilities                                                                                                                                      |                      | 19,876,854 |   |   | 20,531,724  |
|                                                                                                                                                                   |                      |   |   |   |   |
| Total      liabilities                                                                                                                                                 |                      | 44,839,813 |   |   | 45,323,424 |
|                                                                                                                                                                   |                      |   |   |   |   |
| 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 2009 and 2008 | $                         | 6,437 |   | $ | 6,437  |
| Additional      paid-in capital                                                                                                                                        |                      | 3,495,894 |   |   | 2,872,242  |
| Accumulated      other comprehensive loss                                                                                                                              |                      | (159,242) |   |   | (129,884) |
| Accumulated      deficit                                                                                                                                               |                      | (1,903,926) |   |   | (1,953,540) |
|                                                                                                                                                                   |                      |   |   |   |   |
| Total      stockholder’s equity                                                                                                                                  |                      | 1,439,163 |   |   | 795,255  |
|                                                                                                                                                                   |                      |   |   |   |   |
| Total      liabilities and stockholder’s equity                                                                                                                  | $                         | 46,278,976 |   | $ | 46,118,679  |

----

|                                                                                                                                                |   | Unaudited  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|
|                                                                                                                                                |   |  2009 |   |   |  2008 |
|                                                                                                                                                |   |       |   |   |   |
| Net      income (loss)                                                                                                                              |   | 49,614     |   |   | (159,527) |
|                                                                                                                                                |   |       |   |   |   |
| Other      comprehensive loss:                                                                                                                      |   |       |   |   |   |
|                                                                                                                                                |   |       |   |   |   |
| Change      in unrealized holding losses on available-for-salesecurities,     net      of tax and policyholder amounts (1) |   | (28,601)   |   |   | (17,963) |
| Reclassification      adjustments of realized investment gains into net     income      (loss), net of tax (2)        |   | (757)      |   |   | (110) |
|                                                                                                                                                |   |       |   |   |   |
| Other      comprehensive loss                                                                                                                       |   | (29,358)   |   |   | (18,073) |
|                                                                                                                                                |   |       |   |   |   |
| Comprehensive      income (loss)                                                                                                                    |   | 20,256     |   |   | (177,600) |

| (1)   | Net      of tax of $15.4 million and $9.7 million for the three-month periods ended      March 31, 2009 and 2008,respectively. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Net      of tax of $0.4 million and $0.1 million for the three-month periods ended      March 31, 2009 and 2008,respectively. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                      | CommonStock |        | AdditionalPaid-InCapital |   | AccumulatedOtherComprehensiveLoss |   | RetainedEarnings(AccumulatedDeficit) |      | TotalStockholder’sEquity |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|-------------|--------------------------|--------|-----------------------------------|--------|--------------------------------------|-----------|--------------------------------|
|                                                                                                                                                      |        |        |                     |   |                              |   |                                 |      |                           |   |   |   |   |   |
| Balance      at December 31, 2007                                                                                                                         | $           | 6,437       |                     | $      | 2,146,436                         |   | $                                    | (92,403)  |                           | $ | 369,677  |   | $ | 2,430,147  |
|                                                                                                                                                      |        |        |                     |   |                              |   |                                 |      |                           |   |   |   |   |   |
| Cumulative      effect of accounting  changes      related to the adoption  of      SFAS Nos. 158 and 159, net  of      tax |        |        |                     |   |                              |   |                                 | 88,033    |                           |   | (88,376) |   |   | (343) |
| Net      loss                                                                                                                                             |        |        |                     |   |                              |   |                                 |      |                           |   | (159,527) |   |   | (159,527) |
| Tax      benefit from stock options                                                                                                                       |        |        |                     |   | 247                               |   |                                 |      |                           |   |   |   |   | 247  |
| Other      comprehensive loss                                                                                                                             |        |        |                     |   |                              |   |                                 | (18,073)  |                           |   |   |   |   | (18,073) |
|                                                                                                                                                      |        |        |                     |   |                              |   |                                 |      |                           |   |   |   |   |   |
| Balance      at March 31, 2008                                                                                                                            | $           | 6,437       |                     | $      | 2,146,683                         |   | $                                    | (22,443)  |                           | $ | 121,774  |   | $ | 2,252,451  |
|                                                                                                                                                      |        |        |                     |   |                              |   |                                 |      |                           |   |   |   |   |   |
|                                                                                                                                                      |        |        |                     |   |                              |   |                                 |      |                           |   |   |   |   |   |
|                                                                                                                                                      |        |        |                     |   |                              |   |                                 |      |                           |   |   |   |   |   |
| Balance      at December 31, 2008                                                                                                                         | $           | 6,437  |                     | $      | 2,872,242                         |   | $                                    | (129,884) |                           | $ | (1,953,540) |   | $ | 795,255 |
|                                                                                                                                                      |        |        |                     |   |                              |   |                                 |      |                           |   |   |   |   |   |
|          Net income                                                                                                                        |        |        |                     |   |                              |   |                                 |      |                           |   | 49,614 |   |   | 49,614 |
| Capital      contribution from Parent                                                                                                                     |        |        |                     |   | 623,652                           |   |                                 |      |                           |   |   |   |   | 623,652 |
| Other      comprehensive loss                                                                                                                             |        |        |                     |   |                              |   |                                 | (29,358)  |                           |   |   |   |   | (29,358) |
|                                                                                                                                                      |        |        |                     |   |                              |   |                                 |      |                           |   |   |   |   |   |
| Balance      at March 31, 2009                                                                                                                            | $           | 6,437       |                     | $      | 3,495,894                         |   | $                                    | (159,242) |                           | $ | (1,903,926) |   | $ | 1,439,163 |
|                                                                                                                                                      |        |        |                     |   |                              |   |                                 |      |                           |   |   |   |   |   |

----

|                                                                                                                                        | Unaudited |
|---------------------------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                                                        | 2009      |   | 2008 |
|                                                                                                                                        |      |   |   |   |   |
| Cash      Flows From Operating Activities:                                                                                                  |      |   |   |   |   |
| Net      income (loss)                                                                                                                      | $         | 49,614  |   | $ | (159,527) |
| Adjustments      to reconcile net income (loss) to net cash provided by       operating      activities: |      |   |   |   |   |
| Net      amortization of premiums on investments                                                                                            |      | 8,624  |   |   | 6,511  |
| Amortization      of deferred policy acquisition costs and value of    business      and customer renewals acquired     |      | (121,890) |   |   | (272,647) |
| Depreciation      and amortization                                                                                                          |      | 1,750  |   |   | 1,539  |
| Net      (gains) losses on derivatives                                                                                                      |      | (189,406) |   |   | 67,492  |
| Net      realized losses (gains) on available-for-sale investments                                                                          |      | 1,897  |   |   | (2,734) |
| Changes      in fair value of trading investments                                                                                           |      | 110,579  |   |   | 594,241  |
| Net      realized losses (gains) on trading investments                                                                                     |      | 45,380  |   |   | (8,071) |
| Undistributed      income on private equity limited partnerships                                                                  |      | (1,481) |   |   | (5,553) |
| Interest      credited to contractholder deposits                                                                                           |      | 121,035  |   |   | 149,127  |
| Deferred      federal income taxes                                                                                                          |      | 23,323  |   |   | (89,481) |
| Changes      in assets and liabilities:                                                                                                     |      |   |   |   |   |
| Additions      to deferred policy acquisition costs and value of business    and      customer renewals acquired        |      | (98,769) |   |   | (78,357) |
| Accrued      investment income                                                                                                              |      | 32,834  |   |   | 10,564  |
| Net      change in reinsurance receivable/payable                                                                                           |      | 213,683  |   |   | 84,352  |
| Future      contract and policy benefits                                                                                                    |      | 24,521  |   |   | 10,535  |
| Other,      net                                                                                                                             |      | (84,385) |   |   | (19,827) |
|                                                                                                                                        |      |   |   |   |   |
| Net      cash provided by operating activities                                                                                              |      | 137,309  |   |   | 288,164  |
|                                                                                                                                        |      |   |   |   |   |
| Cash      Flows From Investing Activities:                                                                                                  |      |   |   |   |   |
| Sales,      maturities and repayments of:                                                                                                   |      |   |   |   |   |
| Available-for-sale      fixed maturities                                                                                                    |      | 9,715  |   |   | 13,647  |
| Trading      fixed maturities                                                                                                               |      | 213,506  |   |   | 579,230  |
| Mortgage      loans                                                                                                                         |      | 62,182  |   |   | 161,265  |
| Real      Estate                                                                                                                            |      | -  |   |   | - |
| Other      invested assets                                                                                                                  |      | 208,502  |   |   | 13,737  |
| Purchases      of:                                                                                                                          |      |   |   |   |   |
| Available-for-sale      fixed maturities                                                                                                    |      | (925) |   |   | (45,063) |
| Trading      fixed maturities                                                                                                               |      | (19,715) |   |   | (1,031,171) |
| Mortgage      loans                                                                                                                         |      | (31,646) |   |   | (24,924) |
| Real      estate                                                                                                                            |      | (414) |   |   | (2,259) |
| Other      invested assets                                                                                                                  |      | (14,940) |   |   | (260,219) |
| Net      change in other investments                                                                                                        |      | (61,010) |   |   | 233,150  |
| Net      change in policy loans                                                                                                             |      | 4,384  |   |   | 69  |
|                                                                                                                                        |      |   |   |   |   |
| Net      cash provided by (used in) investing activities                                                                                    | $         | 369,639  |   | $ | (362,538) |

----

|                                                     | Unaudited  |
|----------------------------------------------------------|------------|
|                                                     |  2009 |   |  2008 |
|                                                     |       |   |   |   |   |
| Cash      Flows From Financing Activities:               |       |   |   |   |   |
| Additions      to contractholder deposit funds           | $          | 740,398  |   | $ | 419,328  |
| Withdrawals      from contractholder deposit funds       |       | (720,199) |   |   | (913,334) |
| Capital      contribution from Parent                    |       | 623,652  |   |   | - |
| Debt      proceeds                                       |       | 50,000  |   |   | - |
| Other,      net                                          |       | (22,605) |   |   | (21,670) |
|                                                     |       |   |   |   |   |
| Net      cash provided by (used in) financing activities |       | 671,246  |   |   | (515,676) |
|                                                     |       |   |   |   |   |
| Net      change in cash and cash equivalents             |       | 1,178,194  |   |   | (590,050) |
|                                                     |       |   |   |   |   |
| Cash      and cash equivalents, beginning of period      |       | 1,624,149  |   |   | 1,169,701  |
|                                                     |       |   |   |   |   |
|                                                     |       |   |   |   |   |
| Cash      and cash equivalents, end of period            | $          | 2,802,343  |   | $ | 579,651  |
|                                                     |       |   |   |   |   |

----

----

----

----

----

|   | • |   | Most      of the identifiable assets acquired, liabilities assumed and any      noncontrolling interest in the acquired entity shall be measured at their      acquisition-date fair values rather than SFAS No. 141’s requirement to      allocate the cost of an acquisition to individual assets acquired and      liabilities assumed based on their estimated fair  values;                                                                                                                                                                       |
|--------|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | • |   | Acquisition-related      costs incurred by the acquirer shall be expensed in the periods in which      the costs are incurred rather than included in the cost of the acquired      entity;                                                                                                                                                                                                                                                                                                                                                                  |
|   |    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | • |   | Goodwill      shall be measured as the excess of the consideration transferred,      including the fair value of any contingent consideration, plus the fair      value of any noncontrolling interest in the acquired entity, over the fair      values of the acquired identifiable net assets, rather than measured as      the excess of the cost of the acquired entity over the estimated fair      values of the acquired identifiable net assets;                                                                                                    |
|   |    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | • |   | Contractual      pre-acquisition contingencies are to be recognized at their acquisition      date fair values and noncontractual pre-acquisition contingencies are to      be recognized at their acquisition date fair values only if it is more      likely than not that the contingency gives rise to an asset or liability,      whereas SFAS No. 141 generally permits the deferred recognition of      pre-acquisition contingencies until the recognition criteria of SFAS      No. 5, “Accounting for Contingencies” are met; and |
|   |    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | • |   | Contingent      consideration shall be recognized at the acquisition date rather than when      the contingency is resolved and consideration is issued or becomes      issuable.                                                                                                                                                                                                                                                                                                                                                                            |

----

----

----

----

----

----

|                                         | Value      ofDistribution |   | VOBA   |   | VOCRA |
|----------------------------------------------|---------------------------|--------|--------|--------|-------|
| Three-month      period ended March 31, 2009 | $                         | 75     |   | $      | 22    |   | $ | 726 |
| Three-month      period ended March 31, 2008 | $                         | 75     |   | $      | 678   |   | $ | 560 |

----

----

|                                                                                                      | Three-month      period ended March 31, 2009       |   |                                                          |
|-----------------------------------------------------------------------------------------------------------|----------------------------------------------------|--------|---------------------------------------------------------------|
|                                                                                                      |                                               |   |                                                          |   |   |   |   |   |   |
|                                                                                                      | Wealth                                             |   | Individual                                                    |   | Group |   |   |   |   |
|                                                                                                      | Management                                         |   | Protection                                                    |   | Protection |   | Corporate |   | Totals |
| Total      revenues                                                                                       | $       338,430 |   | $     (138,769)                      |   | $         33,390 |   | $      (3,988) |   | $       229,063 |
| Total      benefits and    expenses                                                   | 118,985                                            |   | 9,841                                                         |   | 26,891 |   | 6,271  |   | 161,988 |
| Income      (loss) before    income      tax expense    (benefit) | 219,445                                            |   | (148,610)                                                     |   | 6,499 |   | (10,259) |   | 67,075 |
| Net      income (loss)                                                                                    | $      147,863       |   | $      (96,603)                 |   | $          4,224 |   | $     (5,870) |   | $        49,614 |
|                                                                                                      |                                               |   |                                                          |
|                                                                                                      | Three-month      period ended March 31, 2008       |   |                                                          |
|                                                                                                      |                                               |   |                                                          |   |   |   |   |   |   |
|                                                                                                      | Wealth                                             |   | Individual                                                    |   | Group |   |   |   |   |
|                                                                                                      | Management                                         |   | Protection                                                    |   | Protection |   | Corporate |   | Totals |
| Total      revenues                                                                                       | $    (256,156)                 |   | $        15,982  |   | $         24,496  |   | $      18,429  |   | $    (197,249) |
| Total      benefits and    expenses                                                   | (38,949)                                           |   | 57,687                                                   |   | 29,248  |   | 7,525  |   | 55,511  |
| (Loss)      income before    income      tax (benefit)    expense | (217,207)                                          |   | (41,705)                                                      |   | (4,752) |   | 10,904  |   | (252,760) |
| Net      (loss) income                                                                                    | $    (137,711)                 |   | $       (27,074)           |   | $          (3,089) |   | $        8,347  |   | $    (159,527) |

----

| ·   | 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 orindirectly. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| 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 |
|----------------|------------------------------------------------------------------|

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

| ·   | 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 orliability. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                          |   | Level      1 |       | Level      2 |   | Level      3 |   | Total  |
|---------------------------------------------------------------|--------|--------------|------------|--------------|--------|--------------|--------|--------|
| Assets                                                        |   |         |       |         |   |         |   |   |   |   |   |   |
| Available-for-sale      fixed maturities                      |   |         |       |         |   |         |   |   |   |   |   |   |
| Asset-backed      and mortgage-backed securities              |   | $            | -          |         | $      | 71,530       |   | $      | 2,588 |   | $ | 74,118 |
| Foreign      government                                       |   |         | -          |         |   | 500          |   |   | - |   |   | 500 |
| States      and political subdivisions                        |   |         | -          |         |   | -            |   |   | - |   |   | - |
| U.S.      Treasury and agency securities                      |   |         | 44,430     |         |   | 196          |   |   | - |   |   | 44,626 |
| Corporate      securities                                     |   |         | -          |         |   | 579,426      |   |   | 1,749 |   |   | 581,175 |
| Total      available-for-sale fixed maturities                |   |         | 44,430     |         |   | 651,652      |   |   | 4,337 |   |   | 700,419 |
|                                                          |   |         |       |         |   |         |   |   |   |   |   |   |
| Trading      fixed maturities                                 |   |         |       |         |   |         |   |   |   |   |   |   |
| Asset-backed      and mortgage-backed securities              |   |         | 31,238     |         |   | 1,710,717    |   |   | 377,493 |   |   | 2,119,448 |
| Foreign      governments                                      |   |         | -          |         |   | 82,908       |   |   | 9,450 |   |   | 92,358 |
| States      and political subdivisions                        |   |         | -          |         |   | 556          |   |   | - |   |   | 556 |
| U.S.      Treasury and agency securities                      |   |         | 403,672    |         |   | 30,927       |   |   | - |   |   | 434,599 |
| Corporate      securities                                     |   |         | -          |         |   | 8,655,817    |   |   | 98,857 |   |   | 8,754,674 |
| Total      trading fixed maturities                           |   |         | 434,910    |         |   | 10,480,925   |   |   | 485,800 |   |   | 11,401,635 |
|                                                          |   |         |       |         |   |         |   |   |   |   |   |   |
| Derivative      instruments – receivable                |   |         | 2,407      |         |   | 558,911      |   |   | 2,361 |   |   | 563,679 |
| Other      invested assets                                    |   |         | -          |         |   | -            |   |   | - |   |   | - |
| Cash      and cash equivalents                                |   |         | 2,802,343  |         |   | -            |   |   | - |   |   | 2,802,343 |
| Total      investments and cash                               |   |         | 3,284,090  |         |   | 11,691,488   |   |   | 492,498 |   |   | 15,468,076 |
|                                                          |   |         |       |         |   |         |   |   |   |   |   |   |
| Other      assets                                             |   |         |       |         |   |         |   |   |   |   |   |   |
| Separate      account assets (1) (2)                          |   |         | 11,950,517 |         |   | 6,876,104    |   |   | 558,767 |   |   | 19,385,388 |
|                                                          |   |         |       |         |   |         |   |   |   |   |   |   |
| Total      assets measured at fair value on a recurring basis |   | $            | 15,234,607 |         | $      | 18,567,592   |   | $      | 1,051,265 |   | $ | 34,853,464 |
|                                                          |   |         |       |         |   |         |   |   |   |   |   |   |

----

|                                                               |   | Level      1 |   | Level      2 |   | Level      3 |   | Total  |
|--------------------------------------------------------------------|--------|--------------|--------|--------------|--------|--------------|--------|--------|
| Liabilities                                                        |   |         |   |         |   |         |   |   |   |   |   |   |
| Other      policy liabilities                                      |   |         |   |         |   |         |   |   |   |   |   |   |
| Guaranteed      minimum withdrawal benefit liability               |   | $            | -      |         | $      | -            |   | $      | 377,589 |   | $ | 377,589 |
| Guaranteed      minimum accumulation benefit liability             |   |         | -      |         |   | -            |   |   | 326,105 |   |   | 326,105 |
| Derivatives      embedded in reinsurance contracts                 |   |         | -      |         |   | (25,968)     |   |   | - |   |   | (25,968) |
| Fixed      index annuities                                         |   |         | -      |         |   | -            |   |   | 90,055 |   |   | 90,055 |
| Total      other policy liabilities                                |   |         | -      |         |   | (25,968)     |   |   | 793,749 |   |   | 767,781 |
|                                                               |   |         |   |         |   |         |   |   |   |   |   |   |
| Derivative      instruments – payable                        |   |         | 9,614  |         |   | 1,176,786    |   |   | 39,143 |   |   | 1,225,543 |
|                                                               |   |         |   |         |   |         |   |   |   |   |   |   |
| Other      liabilities                                             |   |         |   |         |   |         |   |   |   |   |   |   |
| Bank      overdrafts                                               |   |         | 64,929 |         |   | -            |   |   | - |   |   | 64,929 |
|                                                               |   |         |   |         |   |         |   |   |   |   |   |   |
| Total      liabilities measured at fair value on a recurring basis |   | $            | 74,543 |         | $      | 1,150,818    |   | $      | 832,892 |   | $ | 2,058,253 |
|                                                               |   |         |   |         |   |         |   |   |   |   |   |   |

----

|                                                          |   | Level      1 |      | Level      2 |   | Level      3 |   | Total  |
|---------------------------------------------------------------|--------|--------------|-----------|--------------|--------|--------------|--------|--------|
| Assets                                                        |   |         |      |         |   |         |   |   |   |   |   |   |
| Available-for-sale      fixed maturities                      |   |         |      |         |   |         |   |   |   |   |   |   |
| Asset-backed      and mortgage-backed securities              |   | $            | -         |         | $      | 54,793       |   | $      | 4,466 |   | $ | 59,259 |
| Foreign      government                                       |   |         | -         |         |   | 472          |   |   | - |   |   | 472 |
| States      and political subdivisions                        |   |         | -         |         |   | -            |   |   | - |   |   | - |
| U.S.      Treasury and agency securities                      |   |         | 56,478    |         |   | 18,503       |   |   | - |   |   | 74,981 |
| Corporate      securities                                     |   |         | -         |         |   | 531,420      |   |   | 7,888 |   |   | 539,308 |
| Total      available-for-sale fixed maturities                |   |         | 56,478    |         |   | 605,188      |   |   | 12,354 |   |   | 674,020 |
|                                                          |   |         |      |         |   |         |   |   |   |   |   |   |
| Trading      fixed maturities                                 |   |         |      |         |   |         |   |   |   |   |   |   |
| Asset-backed      and mortgage-backed securities              |   |         | -         |         |   | 1,771,382    |   |   | 462,253 |   |   | 2,233,635 |
| Foreign      governments                                      |   |         | -         |         |   | 84,615       |   |   | 9,200 |   |   | 93,815 |
| States      and political subdivisions                        |   |         | -         |         |   | 528          |   |   | - |   |   | 528 |
| U.S.      Treasury and agency securities                      |   |         | 445,732   |         |   | 57,373       |   |   | - |   |   | 503,105 |
| Corporate      securities                                     |   |         | -         |         |   | 8,796,558    |   |   | 134,505 |   |   | 8,931,063 |
| Total      trading fixed maturities                           |   |         | 445,732   |         |   | 10,710,456   |   |   | 605,958 |   |   | 11,762,146 |
|                                                          |   |         |      |         |   |         |   |   |   |   |   |   |
| Derivative      instruments – receivable                |   |         | -         |         |   | 724,435      |   |   | 2,668 |   |   | 727,103 |
| Other      invested assets                                    |   |         | 36,300    |         |   | 143,645      |   |   | - |   |   | 179,945 |
| Cash      and cash equivalents                                |   |         | 1,624,149 |         |   | -            |   |   | - |   |   | 1,624,149 |
| Total      investments and cash                               |   |         | 2,162,659 |         |   | 12,183,724   |   |   | 620,980 |   |   | 14,967,363 |
|                                                          |   |         |      |         |   |         |   |   |   |   |   |   |
| Other      assets                                             |   |         |      |         |   |         |   |   |   |   |   |   |
| Separate      account assets (1) (2)                          |   |         | 376,709   |         |   | 18,957,344   |   |   | 801,873 |   |   | 20,135,926 |
|                                                          |   |         |      |         |   |         |   |   |   |   |   |   |
| Total      assets measured at fair value on a recurring basis |   | $            | 2,539,368 |         | $      | 31,141,068   |   | $      | 1,422,853 |   | $ | 35,103,289 |
|                                                          |   |         |      |         |   |         |   |   |   |   |   |   |

----

|                                                               |   | Level      1 |    | Level      2 |   | Level      3 |   | Total  |
|--------------------------------------------------------------------|--------|--------------|---------|--------------|--------|--------------|--------|--------|
| Liabilities                                                        |   |         |    |         |   |         |   |   |   |   |   |   |
| Other      policy liabilities                                      |   |         |    |         |   |         |   |   |   |   |   |   |
| Guaranteed      minimum withdrawal benefit liability               |   | $            | -       |         | $      | -            |   | $      | 335,612 |   | $ | 335,612 |
| Guaranteed      minimum accumulation benefit liability             |   |         | -       |         |   | -            |   |   | 358,604 |   |   | 358,604 |
| Derivatives      embedded in reinsurance contracts                 |   |         | -       |         |   | (50,792)     |   |   | - |   |   | (50,792) |
| Fixed      index annuities                                         |   |         | -       |         |   | -            |   |   | 106,619 |   |   | 106,619 |
| Total      other policy liabilities                                |   |         | -       |         |   | (50,792)     |   |   | 800,835 |   |   | 750,043 |
|                                                               |   |         |    |         |   |         |   |   |   |   |   |   |
| Derivative      instruments – payable                        |   |         | 22,818  |         |   | 1,429,457    |   |   | 42,066 |   |   | 1,494,341 |
|                                                               |   |         |    |         |   |         |   |   |   |   |   |   |
| Other      liabilities                                             |   |         |    |         |   |         |   |   |   |   |   |   |
| Bank      overdrafts                                               |   |         | 87,534  |         |   | -            |   |   | - |   |   | 87,534 |
|                                                               |   |         |    |         |   |         |   |   |   |   |   |   |
| Total      liabilities measured at fair value on a recurring basis |   | $            | 110,352 |         | $      | 1,378,665    |   | $      | 842,901 |   | $ | 2,331,918 |
|                                                               |   |         |    |         |   |         |   |   |   |   |   |   |

----

| Assets                                                             | Beginningbalance                         | Total      realized and unrealizedgains      (losses) | Purchases,issuances,andsettlements(net)                                                          | Transfers      inand/or      (out)of      level 3 (2)                                  | Endingbalance                                                                                             | Change      inunrealizedgains      (losses)included      inearningsrelating      toinstrumentsstill      held at thereporting      date |
|--------------------------------------------------------------------|------------------------------------------|-------------------------------------------------------|--------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|
| Included      inearnings                                           | Included      inothercomprehensiveincome |
| Available-for-sale      fixed maturities                           |                                     |                                                  |                                                                                             |                                                                                   |                                                                                                      |                                                                                                                                    |   |
| Asset-backed      and mortgage-backed securities                   | $     4,466     | $      (46)             | $(489)                                                                                           | $            -   | $      (1,343)                                                              | $     2,588                                                                                                    | $               -   |
| Foreign      government                                            | -                                        | -                                                | -                                                                                           | -                                                                                 | -                                                                                                    | -                                                                                                                                       | -   |
| States      and political subdivisions                             | -                                        | -                                                | -                                                                                           | -                                                                                 | -                                                                                                    | -                                                                                                                                       | -   |
| U.S.      Treasury and agency securities                           | -                                        | -                                                | -                                                                                           | -                                                                                 | -                                                                                                    | -                                                                                                                                       | -   |
| Corporate      securities                                          | 7,888                                    | 123                                              | (131)                                                                                            | (162)                                                                             | (5,969)                                                                                                   | 1,749                                                                                                                                   | -   |
| Total      available-for-sale fixed maturities                     | 12,354                                   | 77                                               | (620)                                                                                       | (162)                                                                             | (7,312)                                                                                                   | 4,337                                                                                                                                   | -   |
|                                                               |                                     |                                                  |                                                                                             |                                                                                   |                                                                                                      |                                                                                                                                    |   |
| Trading      fixed maturities                                      |                                     |                                                  |                                                                                             |                                                                                   |                                                                                                      |                                                                                                                                    |   |
| Asset-backed      and mortgage-backed securities                   | 462,253                                  | (49,017)                                              | -                                                                                           | (8,335)                                                                           | (27,408)                                                                                                  | 377,493                                                                                                                                 | (1,488)  |
| Foreign      governments                                           | 9,200                                    | 250                                              | -                                                                                           | -                                                                                 | -                                                                                                    | 9,450                                                                                                                              | 250    |
| States      and political subdivisions                             | -                                        | -                                                | -                                                                                           | -                                                                                 | -                                                                                                    | -                                                                                                                                  | -   |
| U.S.      Treasury and agency securities                           | -                                        | -                                                | -                                                                                           | -                                                                                 | -                                                                                                    | -                                                                                                                                  | -   |
| Corporate      securities                                          | 134,505                                  | 15,311                                           | -                                                                                           | (3,121)                                                                           | (47,838)                                                                                                  | 98,857                                                                                                                             | 4,234  |
| Total      trading fixed maturities                                | 605,958                                  | (33,456)                                              | -                                                                                           | (11,456)                                                                          | (75,246)                                                                                                  | 485,800                                                                                                                            | 2,996  |
|                                                               |                                     |                                                  |                                                                                             |                                                                                   |                                                                                                      |                                                                                                                                    |   |
| Derivative      instruments – receivable                     | 2,668                                    | (328)                                                 | -                                                                                           | 21                                                                                | -                                                                                                    | 2,361                                                                                                                              | (328)   |
| Other      invested assets                                         | -                                        | -                                                | -                                                                                           | -                                                                                 | -                                                                                                    | -                                                                                                                                  | -   |
| Cash      and cash equivalents                                     | -                                        | -                                                | -                                                                                           | -                                                                                 | -                                                                                                    | -                                                                                                                                  | -   |
| Total      investments and cash                                    | 620,980                                  | (33,707)                                              | (620)                                                                                       | (11,597)                                                                          | (82,558)                                                                                                  | 492,498                                                                                                                            | 2,688  |
|                                                               |                                     |                                                  |                                                                                             |                                                                                   |                                                                                                      |                                                                                                                                    |   |
| Other      assets                                                  |                                     |                                                  |                                                                                             |                                                                                   |                                                                                                      |                                                                                                                                    |   |
| Separate      account assets (1)                                   | 801,873                                  | 5,836                                       | -                                                                                                | (60,598)                                                                          |                      (188,344) | 558,767                                                                                                                                 | 25,428  |
|                                                               |                                     |                                                  |                                                                                             |                                                                                   |                                                                                                      |                                                                                                                                    |   |
| Total      assets measured at fair value on a recurring basis | $      1,422,853                         | $  (27,871)                                 | $               (620) | $       (72,195)                               | $   (270,902)                                                                              | $1,051,265                                                                                                                              | $         28,096  |

| (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 March 31,      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)      lossesincluded      inearningsrelating      toinstrumentsstill      held atthe      reportingdate |
|------------------------------------------------------------------------------------------|------------------------------------------|-------------------------------------------------------|----------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|
| Included      inearnings                                                                 | Included      inothercomprehensiveincome |
|                                                                                     |                                     |                                                  |                                                                                                     |                                                         |                                                                                   |                                                                                                                                   |   |
| Other      policy liabilities                                                            |                                     |                                                  |                                                                                                     |                                                         |                                                                                   |                                                                                                                                   |   |
| Guaranteed      minimum withdrawal benefit         liability              | $   335,612               | $   30,956                        | $                 - | $        11,021      | $             -       | $   377,589                                                                                                             | $        34,571 |
| Guaranteed      minimum accumulation  benefit         liability | 358,604                                  | (37,081)                                              | -                                                                                                        | 4,582                                                        | -                                                                                      | 326,105                                                                                                                                | (34,033) |
| Derivatives      embedded in reinsurance contracts                                       | -                                        | -                                                | -                                                                                                        | -                                                            | -                                                                                      | -                                                                                                                                      | - |
| Fixed      index annuities                                                               | 106,619                                  | (9,910)                                               | -                                                                                                        | (6,654)                                                      | -                                                                                      | 90,055                                                                                                                                 | (14,970) |
| Total      other policy liabilities                                                      | 800,835                                  | (16,035)                                              | -                                                                                                        | 8,949                                                        | -                                                                                      | 793,749                                                                                                                                | (14,432) |
|                                                                                     |                                     |                                                  |                                                                                                     |                                                         |                                                                                   |                                                                                                                                   |   |
| Derivative      instruments – payable                                              | 42,066                                   | (2,923)                                               | -                                                                                                        | -                                                            | -                                                                                      | 39,143                                                                                                                                 | (2,923) |
|                                                                                     |                                     |                                                  |                                                                                                     |                                                         |                                                                                   |                                                                                                                                   |   |
| Total      liabilities measured at fair value on a recurring basis                       | $  842,901                     | $   (18,958)                           | $               -             | $         8,949 | $              - | $  832,892                                                                                                                   | $        (17,355) |

----

| Assets                                                                                                                  | Beginningbalance                                 | Total      realized and unrealizedgains      (losses)  | Purchases,issuances,      andsettlements(net)                                  | Transfers      inand/or      (out)of      level 3 (2)                                                                            | Endingbalance                                                                          | Change      inunrealized      gains(losses)      includedin      earningsrelating      toinstruments      stillheld      at thereporting      date |
|-------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| Includedin      earnings                                                                                                | Included      inothercomprehensiveincome         |
| Available-for-sale      fixed maturities                                                                                |                                             |                                                   |                                                                           |                                                                                                                             |                                                                                   |                                                                                                                                               |   |   |
|      Asset-backed      and mortgage-backed       securities | $       4,330 | $        (123) | $           (260)       | $                     - | $              - | $    3,947                                                                                                                     | $                          - |   |
|   Foreign      government                                                                                     | -                                                | -                                                      | -                                                                              | -                                                                                                                                | -                                                                                      | -                                                                                                                                                  | - |   |
|   States      and political subdivisions                                                                      | -                                                | -                                                      | -                                                                              | -                                                                                                                                | -                                                                                      | -                                                                                                                                                  | - |   |
|   U.S.      Treasury and agency securities                                                                    | -                                                | -                                                      | -                                                                              | -                                                                                                                                | -                                                                                      | -                                                                                                                                                  | - |   |
|   Corporate      securities                                                                                   | 9,039                                            | 120                                                    | (701)                                                                          | (309)                                                                                                                            | 2,062                                                                                  | 10,211                                                                                                                                             | - |   |
| Total      available-for-sale fixed maturities                                                                          | 13,369                                      | (3)                                                    | (961)                                                                          | (309)                                                                                                                            | 2,062                                                                                  | 14,158                                                                                                                                             | - |   |
|                                                                                                                    |                                             |                                                   |                                                                           |                                                                                                                             |                                                                                   |                                                                                                                                               |   |   |
| Trading      fixed maturities                                                                                           |                                             |                                                   |                                                                           |                                                                                                                             |                                                                                   |                                                                                                                                               |   |   |
|      Asset-backed      and mortgage-backed       securities | 1,085,287                                        | (207,056)                                              | -                                                                              | (228)                                                                                                                            | 32,429                                                                                 | 910,432                                                                                                                                            | (206,600) |   |
| Foreign      governments                                                                                                | 63,331                                           | (1,453)                                                | -                                                                              | 229                                                                                                                              | -                                                                                      | 62,107                                                                                                                                             | (1,453) |   |
| States      and political subdivisions                                                                                  | -                                                | -                                                      | -                                                                              | -                                                                                                                                | -                                                                                      | -                                                                                                                                                  | - |   |
| U.S.      Treasury and agency securities                                                                                | -                                                | -                                                      | -                                                                              | -                                                                                                                                | -                                                                                      | -                                                                                                                                                  | - |   |
| Corporate      securities                                                                                               | 134,446                                          | (15,892)                                               | -                                                                              | 4,529                                                                                                                            | 113,964                                                                                | 237,047                                                                                                                                            | (14,875) |   |
| Total      trading fixed maturities                                                                                     | 1,283,064                                        | (224,401)                                              | -                                                                              | 4,530                                                                                                                            | 146,393                                                                                | 1,209,586                                                                                                                                          | (222,928) |   |
|                                                                                                                    |                                             |                                                   |                                                                           |                                                                                                                             |                                                                                   |                                                                                                                                               |   |   |
| Derivative      instruments – receivable                                                                          | 24,073                                           | 5,927                                                  | -                                                                              | -                                                                                                                                | -                                                                                      | 30,000                                                                                                                                             | 5,927 |   |
| Other      invested assets                                                                                              | -                                                | -                                                      | -                                                                              | -                                                                                                                                | -                                                                                      | -                                                                                                                                                  | - |   |
| Cash      and cash equivalents                                                                                          | -                                                | -                                                      | -                                                                              | -                                                                                                                                | -                                                                                      | -                                                                                                                                                  | - |   |
| Total      investments and cash                                                                                         | 1,320,506                                        | (218,477)                                              | (961)                                                                          | 4,221                                                                                                                            | 148,455                                                                                | 1,253,744                                                                                                                                          | (217,001) |   |
|                                                                                                                    |                                             |                                                   |                                                                           |                                                                                                                             |                                                                                   |                                                                                                                                               |   |   |
| Other      assets                                                                                                       |                                             |                                                   |                                                                           |                                                                                                                             |                                                                                   |                                                                                                                                               |   |   |
| Separate      account assets (1)                                                                                        | 1,752,495                                        | (15,088)                                               | -                                                                              | (161,839)                                                                                                                        | (384,250)                                                                              | 1,191,318                                                                                                                                          | (23,409) |   |
|                                                                                                                    |                                             |                                                   |                                                                           |                                                                                                                             |                                                                                   |                                                                                                                                               |   |   |
| Total      assets measured at fair value on a recurring basis                                                           | $      3,073,001                                 | $      (233,565)                                       | $            (961) | $      (157,618)                                                                                   | $   (235,795)                                                           | $2,445,062                                                                                                                                         | $         (240,410) |   |

----

| Liabilities                                                                                                | Beginningbalance                         | Total      realized and unrealizedgains      (losses) | Purchases,issuances,      andsettlements(net)                                                                        | Transfers      inand/or      (out)of      level 3                                          | Endingbalance                                                                    | Change      inunrealized      gains(losses)      includedin      earningsrelating      toinstruments      stillheld      at thereporting      date |
|------------------------------------------------------------------------------------------------------------|------------------------------------------|-------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| Includedin      earnings                                                                                   | Included      inothercomprehensiveincome |
|                                                                                                       |                                     |                                                  |                                                                                                                 |                                                                                       |                                                                             |                                                                                                                                               |   |
| Other      policy liabilities                                                                              |                                     |                                                  |                                                                                                                 |                                                                                       |                                                                             |                                                                                                                                               |   |
|   Guaranteed      minimum withdrawal     benefit      liability         | $    10,151          | $    14,881                       | $                  -       | $              5,853 | $             - | $   30,885                                                                                                                          | $               14,901 |
|    Guaranteed      minimum accumulation     benefit      liability | 22,649                                   | 38,264                                                | -                                                                                                                    | 5,955                                                                                      | -                                                                                | 66,868                                                                                                                                             | 38,298 |
|   Derivatives      embedded in reinsurance contracts                                             | -                                        | -                                                     | -                                                                                                                    | -                                                                                          | -                                                                                | -                                                                                                                                                  | - |
|    Fixed      index annuities                                                               | 392,017                                  | (147,543)                                             | -                                                                                                                    | 1,245                                                                                      | -                                                                                | 245,719                                                                                                                                            | (132,357) |
| Total      other policy liabilities                                                                        | 424,817                                  | (94,398)                                              |  -                                                                                                              | 13,053                                                                                | -                                                                                | 343,472                                                                                                                                            | (79,158) |
|                                                                                                       |                                     |                                                  |                                                                                                                 |                                                                                       |                                                                             |                                                                                                                                               |   |
| Derivative      instruments – payable                                                                | 11,627                                   | 16,327                                                | -                                                                                                                    | -                                                                                          | -                                                                                | 27,954                                                                                                                                             | 16,327 |
|                                                                                                       |                                     |                                                  |                                                                                                                 |                                                                                       |                                                                             |                                                                                                                                               |   |
| Total      liabilities measured at fair value on    a      recurring basis             | $  436,444                | $  (78,071)                                 | $                   - | $             13,053      | $             - | $      371,426                                                                                                                                     | $              (62,831) |

----

----

----

----

|                      | As      ofDecember      31, 2008 | As      ofMarch      31, 2009                                     |
|---------------------------|----------------------------------|-------------------------------------------------------------------|
|                      |  Number      ofContracts    | PrincipalNotional(in      000’s)                            | Number      ofContracts | PrincipalNotional(in      000’s) |
|                      |                             |                                                              |   |   |
| Interest      rate swaps  | 218                              | $     14,036,100                         | 198 | $     12,809,600 |
| Currency      swaps       | 14                               |       408,773                       | 14 | 408,773 |
| Credit      default swaps | 1                                |         55,000            | 1 | 55,000 |
| Equity      swaps         | 2                                |           4,908 | 2 | 4,908 |
| Currency      forwards    | -                                | -                                                                 | - | - |
| Swaptions                 | 5                                |    1,150,000                                       | 5 | 1,150,000 |
| Futures                   | 927                              |    1,991,840                                       | (9,456) | 1,340,750 |
| Index      call options   | 8,081                            |    1,166,148                                       | 7,200 | 1,078,958 |
| Index      put options    | 5,500                            |      591,385                             | 4,930 | 477,861 |
| Total                     | 14,748                           | $     19,404,154                         | 2,894 | $     17,325,850 |

----

|                            | As      of March 31, 2009 |
|---------------------------------|---------------------------|
|                            | Asset      Derivatives    | Liability      Derivatives |
|                            |                      | Fair      Value (a) |   | Fair      Value (a) |
|                            |                      |   |   |   |
| Interest      rate contracts    |                      | $     413,170 |   | $     1,174,381 |
| Foreign      currency contracts |                      | 46,210 |   | 2,405 |
| Equity      contracts           |                      | 101,892 |   | - |
| Credit      contracts           |                      | - |   | 39,143 |
| Futures      (b)                |                      | 2,407 |   | 9,614 |
| Embedded      derivatives (c)   |                      | 147,010 |   | 914,791 |
| Total                           |                      | $     710,689 |   | $     2,140,334 |

| (a)   | Amounts      are presented without consideration of master netting agreements and      collateral. |
|-----------------|----------------------------------------------------------------------------------------------------|

| (b)   | Futures      include both interest rate and equity price  risks. |
|-----------------|------------------------------------------------------------------|

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

|                            |   | For      the Period EndedMarch      31, 2009 |
|---------------------------------|--------|----------------------------------------------|
|                            |   | Gain      (Loss) Recognizedin      Income    |
| Interest      rate contracts    |   | $     110,630  |
| Foreign      currency contracts |   | 4,662                                   |
| Equity      contracts           |   | 7,706                                   |
| Credit      contracts           |   | 2,923                                   |
| Futures                         |   | 38,250                                  |
| Embedded      derivatives       |   | (20,872)                                     |
| Total                           |   | $     143,299  |

----

----

|                                                                      | March      31, |            | December      31, |
|---------------------------------------------------------------------------|----------------|-----------------|-------------------|
|                                                                      | 2009           |            | 2008              |
| AssetsReinsurance      receivable                                         |  $        |  1,559,711 |              |  $ |  1,560,946 |
| Other      assets                                                         |           | -               |              |   | 38,998 |
|                                                                      |           |            |              |   |   |
| LiabilitiesContractholder      deposit funds and other policy liabilities |           | 1,413,158       |              |   | 1,428,331 |
| Reinsurance      payable                                                  |           | 1,515,372       |              |   | 1,509,989 |

----

|                                                                      | March      31, |          |   |
|---------------------------------------------------------------------------|----------------|---------------|--------|
|                                                                      | 2009           |          |   |
| AssetsReinsurance      receivable                                         |  $        |  331,598 |   |   |   |
|                                                                      |           |          |   |   |   |
| LiabilitiesContractholder      deposit funds and other policy liabilities |           | 342,921       |   |   |   |
| Reinsurance      payable                                                  |           | 374,411       |   |   |   |

----

|                                                                      | March      31, |          | December      31, |
|---------------------------------------------------------------------------|----------------|---------------|-------------------|
|                                                                      | 2009           |          | 2008              |
| AssetsReinsurance      receivable for funds withheld                      |  $        |  923,258 |              |  $ |  1,105,722 |
| Reinsurance      receivable – other                                 |           | 26,737        |              |   | 19,686 |
|                                                                      |           |          |              |   |   |
| LiabilitiesContractholder      deposit funds and other policy liabilities |           |  862,956 |              |   |  813,387 |
| Future      contract and policy benefits                                  |           | 66,690        |              |   | 73,058 |
| Other      liabilities                                                    |           | -             |              |   | 12,004 |

----

|                                                                      | March      31, |         | December      31, |
|---------------------------------------------------------------------------|----------------|--------------|-------------------|
|                                                                      | 2009           |         | 2008              |
| AssetsReinsurance      receivables                                        |  $        |  90,506 |              |  $ |  77,628 |
| Other      assets                                                         |           | -            |              |   | 2,676 |
|                                                                      |           |         |              |   |   |
| LiabilitiesContractholder      deposit funds and other policy liabilities |           |  64,298 |              |   |  63,210 |
| Future      contract and policy benefits                                  |           | 4,509        |              |   | 3,162 |
| Reinsurance      payable                                                  |           | 148,998      |              |   | 140,832 |
| Other      liabilities                                                    |           | -            |              |   | 1,057 |

----

----

|                                                                  |                                                                                                                               | 2009                                                                                                       | 2008                                                                                         |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|
|                                                                  |                                                                                                                               | Pension Plans                                                                                              | OtherBenefit      Plan                                                                       | Pension      Plans | OtherBenefit      Plan |
|                                                                  |                                                                                                                               |                                                                                                       |                                                                                         |   |   |
| Components of net      periodic benefit cost:                         |                                                                                                                               |                                                                                                       |                                                                                         |   |
| Service      cost                                                     | $                     649 | $                 438 | $ 880                                                                              | $ 404  |
| Interest      cost                                                    | 4,358                                                                                                                              | 805                                                                                                        | 4,154                                                                                   | 833  |
| Expected      return on plan assets                                   | (3,702)                                                                                                                            | -                                                                                                          | (5,743)                                                                                      | -  |
| Amortization      of transition obligation asset                      | (523)                                                                                                                              | -                                                                                                          | (523)                                                                                        | -  |
| Amortization      of prior service cost                               | 84                                                                                                                                 | (132)                                                                                                      | 84                                                                                      | (132) |
| Recognized      net actuarial loss (gain)                             | 696                                                                                                                                | 95                                                                                                         | (198)                                                                                        | 229  |
| Net      periodic cost (benefit)                                      | 1,562                                                                                                                              | 1,206                                                                                                      | $              (1,346) | $ 1,334  |
| The      Company’s share of net periodic benefit cost (benefit) | $                 1,562                       | $                949       | $ (1,346)                                                                               | $ 1,160  |

----

| Benefit      Type                       | Account      Balance | Net      Amount at Risk 1 | Average      Attained Age |
|-----------------------------------------|----------------------|---------------------------|---------------------------|
| Minimum      death                      | 12,030,300           | 5,029,011                 | 67.4                      |
| Minimum      income                     | 173,697              | 139,006                   | 60.9                      |
| Minimum      accumulation andwithdrawal | 5,078,752            | 1,113,715                 | 63.8                      |

| Benefit      Type                      | Account      Balance                                                                               | Net      Amountat      Risk 1                                                                | Average      Attained Age |
|----------------------------------------|----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|---------------------------|
| Minimum      Death                     | $          12,627,787                            | $           4,398,559                 | 66.7                      |
| Minimum      Income                    | $               189,863 | $              130,177 | 60.8                      |
| Minimum      Accumulation orWithdrawal | $            4,961,237                 | $              857,764 | 63.0                      |

|                                               | GuaranteedMinimumDeath      Benefit                                                          |   | GuaranteedMinimumIncome      Benefit                                                  |   | Total                                                                      |
|----------------------------------------------------|----------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|
| Balance      at December 31, 2008                  | $             201,648  |   | $            18,773  |   | $          220,421  |
|                                               |                                                                                         |   |                                                                                  |   |                                                                       |
| Benefit      ratio change /Assumption      changes | 48,727                                                                                  |   | 5,201                                                                            |   | 53,928                                                                |
| Incurred      guaranteed benefits                  | 10,436                                                                                  |   | 1,146                                                                            |   | 11,582                                                                |
| Paid      guaranteed benefits                      | (36,172)                                                                                     |   | (963)                                                                                 |   | (37,135)                                                                   |
| Interest                                           | 4,058                                                                                   |   | 340                                                                              |   | 4,398                                                                 |
|                                               |                                                                                         |   |                                                                                  |   |                                                                       |
| Balance      at March 31, 2009                     | $            228,697        |   | $           24,497        |   | $         253,194        |

----

|                                               | GuaranteedMinimumDeath      Benefit                                                                           |   | GuaranteedMinimumIncome      Benefit                                                             |   | Total                                                                                 |
|----------------------------------------------------|---------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|
| Balance      at December 31, 2007                  | $                39,673  |   | $              4,817  |   | $            44,490  |
|                                               |                                                                                                          |   |                                                                                             |   |                                                                                  |
| Benefit      ratio change /Assumption      changes |  25,315                                                                                             |   |  (534)                                                                                      |   |  24,781                                                                     |
| Incurred      guaranteed benefits                  | 1,347                                                                                                    |   | 234                                                                                         |   | 1,581                                                                            |
| Paid      guaranteed benefits                      | (10,599)                                                                                                      |   | (242)                                                                                            |   | (10,841)                                                                              |
| Interest                                           | 940                                                                                                      |   | 86                                                                                          |   | 1,026                                                                            |
|                                               |                                                                                                          |   |                                                                                             |   |                                                                                  |
| Balance      at March 31, 2008                     | $                56,676  |   | $              4,361  |   | $            61,037  |

----

----

----

|                                                   | SLUSas      Parent |          | SLNY   |   | OtherSubs    |   | Elimination |         | ConsolidatedCompany |
|--------------------------------------------------------|--------------------|---------------|--------|--------|--------------|--------|-------------|--------------|---------------------|
|                                                   |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Revenues                                               |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
|                                                   |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Premiums      and annuity considerations               | $                  | 1,513    |   | $      | 31,027  |   | $           | -       |                | $ | -  |   | $ | 32,540  |
| Net      investment income (loss) (1)                  |               | 125,567  |   |   | 16,796  |   |        | (124,869)    |                |   | -  |   |   | 17,494  |
| Net      derivative income (loss)                      |               | 129,250  |   |   | 596     |   |        | 13,453  |                |   | -  |   |   | 143,299  |
| Net      realized investment (losses) gains            |               | (1.946)       |   |   | (1)          |   |        | 50      |                |   | -  |   |   | (1,897) |
| Fee      and other income                              |               | 76,114   |   |   | (987)        |   |        | (37,500)     |                |   | -  |   |   | 37,627  |
|                                                   |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Total      revenues                                    |               | 330,498  |   |   | 47,431  |   |        | (148,866)    |                |   | -  |   |   | 229,063  |
|                                                   |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Benefits      and Expenses                             |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
|                                                   |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Interest      credited                                 |               | 100,107  |   |   | 12,212  |   |        | 8,716   |                |   | -  |   |   | 121,035  |
| Interest      expense                                  |               | 11,278   |   |   | 802     |   |        | 7,239   |                |   | -  |   |   | 19,319  |
| Policyowner      benefits                              |               | 82,554   |   |   | 19,088  |   |        | (9,427)      |                |   | -  |   |   | 92,215  |
| Amortization      of DAC, VOBA and VOCRA               |               | (96,718)      |   |   | (10,706)     |   |        | (14,466)     |                |   | -  |   |   | (121,890) |
| Other      operating expenses                          |               | 36,358   |   |   | 9,802   |   |        | 5,149   |                |   | -  |   |   | 51,309  |
|                                                   |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Total      benefits and expenses                       |               | 133,579  |   |   | 31,198  |   |        | (2,789)      |                |   | -  |   |   | 161,988  |
|                                                   |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Income      (loss) before income tax expense (benefit) |               | 196,919  |   |   | 16,233  |   |        | (146,077)    |                |   | -  |   |   | 67,075  |
|                                                   |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Income      tax expense (benefit)                      |               | 68,394   |   |   | 3,958   |   |        | (54,891)     |                |   |   |   |   | 17,461  |
| Equity      in the net loss of subsidiaries            |               | (78,911)      |   |   | -       |   |        | -       |                |   | 78,911  |   |   | -  |
|                                                   |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Net      income (loss)                                 | $                  | 49,614   |   | $      | 12,275  |   | $           | (91,186)     |                | $ | 78,911  |   | $ | 49,614  |

|   |  (1)SLUS’,      SLNY’s and Other Subs’ net investment income (loss) includes a decrease in      market value of trading fixed maturity securities of $28.7 million, $1.2      million and $80.7 million, respectively, for the three-month period ended      March 31, 2009. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                         | SLUSas      Parent |          | SLNY   |   | OtherSubs    |   | Elimination |         | ConsolidatedCompany |
|----------------------------------------------|--------------------|---------------|--------|--------|--------------|--------|-------------|--------------|---------------------|
|                                         |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Revenues                                     |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
|                                         |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Premiums      and annuity considerations     | $                  | 4,699    |   | $      | 24,942  |   | $           | -       |                | $ | -  |   | $ | 29,641 |
| Net      investment (loss) income (1)        |               | (271,760)     |   |   | (16,614)     |   |        | 12,107  |                |   | -  |   |   | (276,267) |
| Net      derivative loss (2)                 |               | (43,750)      |   |   | (2,606)      |   |        | (33,844)     |                |   | -  |   |   | (80,200) |
| Net      realized investment gains           |               | 2,725    |   |   | -       |   |        | 9       |                |   | -  |   |   | 2,734  |
| Fee      and other income                    |               | 105,329  |   |   | 5,158   |   |        | 16,356  |                |   |  -  |   |   | 126,843  |
|                                         |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Total      revenues                          |               | (202,757)     |   |   | 10,880  |   |        | (5,372)      |                |   | -  |   |   | (197,249) |
|                                         |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Benefits      and Expenses                   |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
|                                         |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Interest      credited                       |               | 130,091  |   |   | 11,484  |   |        | 7,552   |                |   | -  |   |   | 149,127  |
| Interest      expense                        |               | 16,717   |   |   | 40      |   |        | 14,320  |                |   | -  |   |   | 31,077  |
| Policyowner      benefits                    |               | 43,261   |   |   | 21,518  |   |        | 5,634   |                |   | -  |   |   | 70,413  |
| Amortization      of DAC, VOBA and VOCRA (3) |               | (250,525)     |   |   | (19,160)     |   |        | (2,962)      |                |   | -  |   |   | (272,647) |
| Other      operating expenses                |               | 55,228   |   |   | 14,534  |   |        | 7,779   |                |   | -  |   |   | 77,541  |
|                                         |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Total      benefits and expenses             |               | (5,228)       |   |   | 28,416  |   |        | 32,323  |                |   | -  |   |   | 55,511  |
|                                         |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Loss      before income tax benefit          |               | (197,529)     |   |   | (17,536)     |   |        | (37,695)     |                |   | -  |   |   | (252,760) |
|                                         |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Income      tax benefit                      |               | (73,748)      |   |   | (6,248)      |   |        | (13,237)     |                |   | -  |   |   | (93,233) |
| Equity      in the net loss of subsidiaries  |               | (35,746)      |   |   | -       |   |        | -       |                |   | 35,746  |   |   | -  |
|                                         |               |          |   |   |         |   |        |         |                |   |   |   |   |   |
| Net      loss                                | $                  | (159,527)     |   | $      | (11,288)     |   | $           | (24,458)     |                | $ | 35,746  |   | $ | (159,527) |

|   | (1)SLUS’,      SLNY’s and Other Subs’ net investment (loss) income includes a decrease in      market value of trading fixed maturity securities of $514.2 million, $36.5      million and $43.5 million, respectively, for the three-month period ended      March 31, 2008. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)SLUS’      and SLNY’s net derivative loss for the three-month period ended March 31,      2008 includes $165.8 million and $0.3 million, respectively, of income      related to the Company’s adoption of SFAS No. 157, which is further      discussed in Note 4. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3)SLUS’      and SLNY’s amortization of DAC, VOBA, and VOCRA for the three-month period      ended March 31, 2008 includes $3.0 million and $0.2 million, respectively,      of expenses related to the Company’s adoption of SFAS No. 157, which is      further discussed in Note 4. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                           | SLUSas      Parent |             | SLNY   |   | OtherSubs       |   | Elimination |            | ConsolidatedCompany |
|----------------------------------------------------------------|--------------------|------------------|--------|--------|-----------------|--------|-------------|-----------------|---------------------|
| ASSETS                                                         |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Investments                                                    |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Available-for-sale      fixed maturities at fair value         | $                  | 511,519     |   | $      | 139,697    |   | $           | 49,203     |                | $ | -  |   | $ | 700,419  |
| Trading      fixed maturities at fair value                    |               | 9,404,389   |   |   | 958,609    |   |        | 1,038,637  |                |   | -  |   |   | 11,401,635  |
| Investment      in subsidiaries                                |               | 409,451     |   |   | -          |   |        | -          |                |   | (409,451) |   |   | -  |
| Mortgage      loans                                            |               | 1,876,069   |   |   | 169,249         |   |        | 5,533      |                |   | -  |   |   | 2,050,851  |
| Derivative      instruments – receivable                 |               | 563,679     |   |   | -          |   |        | -          |                |   | -  |   |   | 563,679  |
| Limited      partnerships                                      |               | 57,158      |   |   | -          |   |        | -          |                |   | -  |   |   | 57,158  |
| Real      estate                                               |               | 156,717     |   |   | -          |   |        | 43,867     |                |   | -  |   |   | 200,584  |
| Policy      loans                                              |               | 700,837     |   |   | 153        |   |        | 24,033     |                |   | -  |   |   | 725,023  |
| Other      invested assets                                     |               | 30,318      |   |   | 45         |   |        | -          |                |   | -  |   |   | 30,363  |
| Cash      and cash equivalents                                 |               | 2,202,612   |   |   | 310,282    |   |        | 289,449    |                |   | -  |   |   | 2.802,343  |
| Total      investments and cash                                |               | 15,912,749  |   |   | 1,578,035       |   |        | 1,450,722  |                |   | (409,451) |   |   | 18,532,055  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Accrued      investment income                                 |               | 218,285     |   |   | 14,032     |   |        | 17,413     |                |   | -  |   |   | 249,730  |
| Deferred      policy acquisition costs                         |               | 2,745,299   |   |   | 254,437    |   |        | 99,075     |                |   | -  |   |   | 3,098,811  |
| Value      of business and customer renewals acquired          |               | 154,080     |   |   | 9,994      |   |        | -          |                |   | -  |   |   | 164,074  |
| Net      deferred tax asset                                    |               | 850,128     |   |   | 21,576     |   |        | -          |                |   | (22,376) |   |   | 849,328  |
| Goodwill                                                       |               | -           |   |   | 7,299           |   |        | -          |                |   | -  |   |   | 7,299  |
| Receivable      for investments sold                           |               | 3,530       |   |   | 489        |   |        | 297        |                |   | -  |   |   | 4,316  |
| Reinsurance      receivable                                    |               | 2,241,075   |   |   | 98,812     |   |        | 945,376    |                |   | -  |   |   | 3,285,263  |
| Other      assets                                              |               | 181,731     |   |   | 27,691     |   |        | 1,824      |                |   | -  |   |   | 211,246  |
| Separate      account assets                                   |               | 19,184,837  |   |   | 651,670    |   |        | 40,347     |                |   | -  |   |   | 19,876,854  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Total      assets                                              | $                  | 41,491,714  |   | $      | 2,664,035  |   | $           | 2,555,054  |                | $ | (431,827) |   | $ | 46,278,976  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| LIABILITIES                                                    |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Contractholder      deposit funds and other policy liabilities | $                  | 15,407,158  |   |   | 1,400,929  |   |        | 895,768    |                |   | -  |   |   | 17,703,855  |
| Future      contract and policy benefits                       |               | 876,973     |   |   | 95,119     |   |        | 67,117     |                |   | -  |   |   | 1,039,209  |
| Payable      for investments purchased                         |               | 166,101     |   |   | 36         |   |        | 13         |                |   | -  |   |   | 166,150  |
| Accrued      expenses and taxes                                |               | 50,066      |   |   | (15,752)        |   |        | 57,552     |                |   | -  |   |   | 91,866  |
| Net      deferred income tax liability                         |               | -           |   |   | -          |   |        | 22,376     |                |   | (22,376) |   |   | -  |
| Debt      payable to affiliates                                |               | 883,000     |   |   | -          |   |        | 1,165,000  |                |   | -  |   |   | 2,048,000  |
| Reinsurance      payable                                       |               | 1,892,733   |   |   | 149,804    |   |        | -          |                |   | -  |   |   | 2,042,537  |
| Derivative      instruments – payable                    |               | 1,104,284   |   |   | -          |   |        | 121,259    |                |   | -  |   |   | 1,225,543  |
| Other      liabilities                                         |               | 487,399     |   |   | 48,636     |   |        | 109,764    |                |   | -  |   |   | 645,799  |
| Separate      account liabilities                              |               | 19,184,837  |   |   | 651,670    |   |        | 40,347     |                |   | -  |   |   | 19,876,854  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Total      liabilities                                         |               | 40,052,551  |   |   | 2,330,442  |   |        | 2,479,196  |                |   | (22,376) |   |   | 44,839,813  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| STOCKHOLDER’S      EQUITY                                |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Common      stock                                              | $                  | 6,437       |   | $      | 2,100      |   | $           | 2,542      |                | $ | (4,642) |   | $ | 6,437  |
| Additional      paid-in capital                                |               | 3,495,894   |   |   | 389,963    |   |        | 255,300    |                |   | (645,263) |   |   | 3,495,894  |
| Accumulated      other comprehensive loss                      |               | (159,242)        |   |   | (27,343)        |   |        | (3,924)         |                |   | 31,267  |   |   | (159,242) |
| Retained      earnings                                         |               | (1,903,926)      |   |   | (31,127)        |   |        | (178,060)       |                |   | 209,187  |   |   | (1,903,926) |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Total      stockholder’s equity                          |               | 1,439,163   |   |   | 333,593    |   |        | 75,858     |                |   | (409,451) |   |   | 1,439,163  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Total      liabilities and stockholder’s equity          | $                  | 41,491,714  |   | $      | 2,664,035  |   | $           | 2,555,054  |                | $ | (431,827) |   | $ | 46,278,976 |

----

|                                                           | SLUSas      Parent |             | SLNY   |   | OtherSubs       |   | Elimination |            | ConsolidatedCompany |
|----------------------------------------------------------------|--------------------|------------------|--------|--------|-----------------|--------|-------------|-----------------|---------------------|
| ASSETS                                                         |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Investments                                                    |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Available-for-sale      fixed maturities at fair value         | $                  | 476,180     |   | $      | 148,124    |   | $           | 49,716     |                | $ | -  |   | $ | 674,020  |
| Trading      fixed maturities at fair value                    |               | 9,639,477   |   |   | 988,809    |   |        | 1,133,860  |                |   | -  |   |   | 11,762,146  |
| Investment      in subsidiaries                                |               | 450,444     |   |   | -          |   |        | -          |                |   | (450,444) |   |   | -  |
| Mortgage      loans                                            |               | 1,911,114   |   |   | 171,889    |   |        | -          |                |   | -  |   |   | 2,083,003  |
| Derivative      instruments – receivable                 |               | 727,103     |   |   | -          |   |        | -          |                |   | -  |   |   | 727,103  |
| Limited      partnerships                                      |               | 78,289      |   |   | -          |   |        | -          |                |   | -  |   |   | 78,289  |
| Real      estate                                               |               | 157,403     |   |   | -          |   |        | 44,067     |                |   | -  |   |   | 201,470  |
| Policy      loans                                              |               | 704,548     |   |   | 156        |   |        | 24,703     |                |   | -  |   |   | 729,407  |
| Other      invested assets                                     |               | 206,902     |   |   | 4,529      |   |        | -          |                |   | -  |   |   | 211,431  |
| Cash      and cash equivalents                                 |               | 1,202,336   |   |   | 377,958    |   |        | 43,855     |                |   | -  |   |   | 1,624,149  |
| Total      investments and cash                                |               | 15,553,796  |   |   | 1,691,465  |   |        | 1,296,201  |                |   | (450,444) |   |   | 18,091,018  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Accrued      investment income                                 |               | 250,170     |   |   | 15,226     |   |        | 17,168     |                |   | -  |   |   | 282,564  |
| Deferred      policy acquisition costs                         |               | 2,555,042   |   |   | 233,401    |   |        | 73,958     |                |   | -  |   |   | 2,862,401  |
| Value      of business and customer renewals acquired          |               | 169,083     |   |   | 10,742     |   |        | -          |                |   | -  |   |   | 179,825  |
| Net      deferred tax asset                                    |               | 910,344     |   |   | 22,627     |   |        | -          |                |   | (76,126) |   |   | 856,845  |
| Goodwill                                                       |               | -           |   |   | 7,299      |   |        | -          |                |   | -  |   |   | 7,299  |
| Receivable      for investments sold                           |               | 6,743       |   |   | 430        |   |        | 375        |                |   | -  |   |   | 7,548  |
| Reinsurance      receivable                                    |               | 1,872,687   |   |   | 82,976     |   |        | 1,120,952  |                |   | -  |   |   | 3,076,615  |
| Other      assets                                              |               | 200,218     |   |   | 20,835     |   |        | 1,787      |                |   | -  |   |   | 222,840  |
| Separate      account assets                                   |               | 19,797,280  |   |   | 690,524    |   |        | 43,920     |                |   | -  |   |   | 20,531,724  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Total      assets                                              | $                  | 41,315,363  |   | $      | 2,775,525  |   | $           | 2,554,361  |                | $ | (526,570) |   | $ | 46,118,679  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| LIABILITIES                                                    |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Contractholder      deposit funds and other policy liabilities | $                  | 15,351,097  |   | $      | 1,348,109  |   | $           | 846,515    |                | $ | -  |   | $ | 17,545,721  |
| Future      contract and policy benefits                       |               | 847,228     |   |   | 93,975     |   |        | 73,485     |                |   | -  |   |   | 1,014,688  |
| Payable      for investments purchased                         |               | 212,788     |   |   | 150,160    |   |        | 565        |                |   | -  |   |   | 363,513  |
| Accrued      expenses and taxes                                |               | 81,362      |   |   | (21,325)        |   |        | 58,634     |                |   | -  |   |   | 118,671  |
| Deferred      tax liability                                    |               | -           |   |   | -          |   |        | 76,126     |                |   | (76,126) |   |   | -  |
| Debt      payable to affiliates                                |               | 883,000     |   |   | -          |   |        | 1,115,000  |                |   | -  |   |   | 1,998,000  |
| Reinsurance      payable                                       |               | 1,509,989   |   |   | 140,832    |   |        | -          |                |   | -  |   |   | 1,650,821  |
| Derivative      instruments – payable                    |               | 1,327,126   |   |   | -          |   |        | 167,215    |                |   | -  |   |   | 1,494,341  |
| Other      liabilities                                         |               | 510,238     |   |   | 44,597     |   |        | 51,110     |                |   | -  |   |   | 605,945  |
| Separate      account liabilities                              |               | 19,797,280  |   |   | 690,524    |   |        | 43,920     |                |   | -  |   |   | 20,531,724  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Total      liabilities                                         |               | 40,520,108  |   |   | 2,446,872  |   |        | 2,432,570  |                |   | (76,126) |   |   | 45,323,424  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| STOCKHOLDER’S      EQUITY                                |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Common      stock                                              | $                  | 6,437       |   | $      | 2,100      |   | $           | 2,542      |                | $ | (4,642) |   | $ | 6,437  |
| Additional      paid-in capital                                |               | 2,872,242   |   |   | 389,963    |   |        | 209,749    |                |   | (599,712) |   |   | 2,872,242  |
| Accumulated      other comprehensive loss                      |               | (129,884)        |   |   | (20,008)        |   |        | (3,626)         |                |   | 23,634  |   |   | (129,884) |
| Accumulated      deficit                                       |               | (1,953,540)      |   |   | (43,402)        |   |        | (86,874)        |                |   | 130,276  |   |   | (1,953,540) |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Total      stockholder’s equity                          |               | 795,255     |   |   | 328,653    |   |        | 121,791    |                |   | (450,444) |   |   | 795,255   |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Total      liabilities and stockholder’s equity          | $                  | 41,315,363  |   | $      | 2,775,525  |   | $           | 2,554,361  |                | $ | (526,570)  |   | $ | 46,118,679  |

----

|                                                                                               | SLUSas      Parent |          | SLNY   |   | OtherSubs    |   | Elimination |          | ConsolidatedCompany |
|----------------------------------------------------------------------------------------------------|--------------------|---------------|--------|--------|--------------|--------|-------------|---------------|---------------------|
|                                                                                               |               |          |   |   |         |   |        |          |                |   |   |   |   |   |
| Cash      Flows From Operating Activities:                                                         |               |          |   |   |         |   |        |          |                |   |   |   |   |   |
| Net      income (loss)                                                                             | $                  | 49,614   |   | $      | 12,275  |   | $           | (91,186)      |                | $ | 78,911  |   | $ | 49,614  |
| Adjustments      to reconcile net loss to net cashprovided      by (used in) operating activities: |               |          |   |   |         |   |        |          |                |   |   |   |   |   |
| Net      amortization of premiums on investments                                                   |               | 8,934    |   |   | 146     |   |        | (456)         |                |   | -  |   |   | 8,624  |
| Amortization      of DAC, VOBA and VOCRA                                                           |               | (96,718)      |   |   | (10,706)     |   |        | (14,466)      |                |   | -  |   |   | (121,890) |
| Depreciation      and amortization                                                                 |               | 1,457    |   |   | 78           |   |        | 215           |                |   | -  |   |   | 1,750  |
| Net      losses on derivatives                                                                     |               | (172,068)     |   |   | (596)        |   |        | (16,742)      |                |   | -  |   |   | (189,406) |
| Net      realized gains (losses) on available-for-saleinvestments                                  |               | 1,946    |   |   | 1       |   |        | (50)          |                |   | -  |   |   | 1,897  |
| Changes      in fair value of trading investments                                                  |               | 28,698   |   |   | 1,182   |   |        | 80,699   |                |   | -  |   |   | 110,579  |
| Net      realized losses on trading investments                                                    |               | 44,848   |   |   | 49      |   |        | 483      |                |   | -  |   |   | 45,380  |
| Undistributed      loss in private equity limitedpartnerships                                      |               | (1,481)       |   |   | -       |   |        | -        |                |   | -  |   |   | (1,481) |
| Interest      credited to contractholder deposits                                                  |               | 100,107  |   |   | 12,212  |   |        | 8,716    |                |   | -  |   |   | 121,035  |
| Equity      in net (income) loss of Subsidiaries                                                   |               | 78,911   |   |   |         |   |        |          |                |   | (78,911) |   |   | -  |
| Deferred      federal income taxes                                                                 |               | 71,915   |   |   | 4,999   |   |        | (53,591)      |                |   | -  |   |   | 23,323  |
| Equity      in net income of subsidiaries                                                          |               | -        |   |   | -       |   |        | -        |                |   | -  |   |   | -  |
| Changes      in assets and liabilities:                                                            |               |          |   |   |         |   |        |          |                |   |   |   |   |   |
| Additions      to DAC, VOBA and VOCRA                                                              |               | (78,536)      |   |   | (9,581)      |   |        | (10,652)      |                |   | -  |   |   | (98,769) |
| Accrued      investment loss (income)                                                         |               | 31,885   |   |   | 1,194   |   |        | (245)         |                |   | -  |   |   | 32,834  |
| Net      reinsurance receivable/payable                                                            |               | 44,162   |   |   | (6,055)      |   |        | 175,576  |                |   | -  |   |   | 213,683  |
| Future      contract and policy benefits                                                           |               | 29,745   |   |   | 1,144   |   |        | (6,368)       |                |   | -  |   |   | 24,521  |
| Other,      net                                                                                    |               | (704)         |   |   | (141,216)    |   |        | 57,535   |                |   | -  |   |   | (84,385) |
|                                                                                               |               |          |   |   |         |   |        |          |                |   |   |   |   |   |
| Net      cash provided by (used in) operating activities                                           | $                  | 142,715  |   | $      | (134,874)    |   | $           | 129,468  |                | $ | -  |   | $ | 137,309  |
|                                                                                               |               |          |   |   |         |   |        |          |                |   |   |   |   |   |
| Cash      Flows From Investing Activities:                                                         |               |          |   |   |         |   |        |          |                |   |   |   |   |   |
| Sales,      maturities and repayments of:                                                          |               |          |   |   |         |   |        |          |                |   |   |   |   |   |
| Available-for-sale      fixed maturities                                                           |               | 9,570    |   |   | 60      |   |        | 85       |                |   | -  |   |   | 9,715  |
| Trading      fixed maturities                                                                      |               | 170,164  |   |   | 28,748  |   |        | 14,594   |                |   | -  |   |   | 213,506  |
| Mortgage      loans                                                                                |               | 59,542   |   |   | 2,640   |   |        | -        |                |   | -  |   |   | 62,182  |
| Other      invested assets                                                                         |               | 206,907  |   |   | 1,595   |   |        | -        |                |   | -  |   |   | 208,502  |
| Purchases      of:                                                                                 |               |          |   |   |         |   |        |          |                |   | -  |   |   |   |
| Available-for-sale      fixed maturities                                                           |               | (925)         |   |   | -       |   |        | -        |                |   | -  |   |   | (925) |
| Trading      fixed maturities                                                                      |               | (19,163)      |   |   | -       |   |        | (552)         |                |   | -  |   |   | (19,715) |
| Mortgage      loans                                                                                |               | (26,113)      |   |   | -       |   |        | (5,533)       |                |   | -  |   |   | (31,646) |
| Real      estate                                                                                   |               | (399)         |   |   | -       |   |        | (15)          |                |   | -  |   |   | (414) |
| Other      invested assets                                                                         |               | (14,925)      |   |   | (15)         |   |        | -        |                |   | -  |   |   | (14,940) |
| Net      change in other investments                                                               |               | (59,107)      |   |   | (1,903)      |   |        | -        |                |   | -  |   |   | (61,010) |
| Net      change in policy loans                                                                    |               | 3,711    |   |   | 3       |   |        | 670      |                |   | -  |   |   | 4,384  |
|                                                                                               |               |          |   |   |         |   |        |          |                |   |   |   |   |   |
| Net      cash provided by investing activities                                                     | $                  | 329,262  |   | $      | 31,128  |   | $           | 9,249    |                | $ | -  |   | $ | 369,639  |

----

|                                                | SLUSas      Parent |            | SLNY   |   | OtherSubs      |   | Elimination |          | ConsolidatedCompany |
|-----------------------------------------------------|--------------------|-----------------|--------|--------|----------------|--------|-------------|---------------|---------------------|
|                                                |               |            |   |   |           |   |        |          |                |   |   |   |   |   |
| Cash      Flows From Financing Activities:          |               |            |   |   |           |   |        |          |                |   |   |   |   |   |
| Additions      to contractholder deposit funds      | $                  | 620,364    |   | $      | 106,564   |   | $           | 13,470        |                | $ | -  |   | $ | 740,398  |
| Withdrawals      from contractholder deposit funds  |               | (651,886)       |   |   | (66,169)       |   |        | (2,144)       |                |   | -  |   |   | (720,199) |
| Additional      capital contributed to subsidiaries |               | (45,551)        |   |   | -         |   |        | -        |                |   | 45,551  |   |   | -  |
| Capital      contribution from Parent               |               | 623,652    |   |   | -         |   |        | 45,551   |                |   | (45,551) |   |   | 623,652  |
| Debt      proceeds                                  |               | -          |   |   | -         |   |        | 50,000   |                |   | -  |   |   | 50,000  |
| Other,      net                                     |               | (18,280)        |   |   | (4,325)        |   |        | -        |                |   | -  |   |   | (22,605) |
|                                                |               |            |   |   |           |   |        |          |                |   | -  |   |   |   |
| Net      cash provided by financing activities      |               | 528,299    |   |   | 36,070    |   |        | 106,877  |                |   | -  |   |   | 671,246  |
|                                                |               |            |   |   |           |   |        |          |                |   |   |   |   |   |
| Net      change in cash and cash equivalents        |               | 1,000,276  |   |   | (67,676)  |   |        | 245,594  |                |   | -  |   |   | 1,178,194  |
|                                                |               |            |   |   |           |   |        |          |                |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period |               | 1,202,336  |   |   | 377,958   |   |        | 43,885   |                |   | -  |   |   | 1,624,149  |
|                                                |               |            |   |   |           |   |        |          |                |   |   |   |   |   |
| Cash      and cash equivalents, end of period       | $                  | 2,202,612       |   | $      | 310,282   |   | $           | 289,449       |                | $ | -  |   | $ | 2,802,343  |

----

|                                                                                                                  | SLUSas      Parent |          |  SLNY |   | OtherSubs     |   |  Elimination |          | ConsolidatedCompany |
|-----------------------------------------------------------------------------------------------------------------------|--------------------|---------------|------------|--------|---------------|--------|-------------------|---------------|---------------------|
|                                                                                                                  |               |          |       |   |          |   |              |          |                |   |   |   |   |   |
| Cash      Flows From Operating Activities:                                                                            |               |          |       |   |          |   |              |          |                |   |   |   |   |   |
| Net      loss                                                                                                         | $                  | (159,527)     |       | $      | (11,288)      |   | $                 | (24,458)      |                | $ | 35,746  |   | $ | (159,527) |
| Adjustments      to reconcile net loss to net cash         provided by (used in) operating activities: |               |          |       |   |          |   |              |          |                |   |   |   |   |   |
| Net      amortization of premiums on investments                                                                      |               | 6,354    |       |   | 621      |   |              | (464)         |                |   | -  |   |   | 6,511  |
| Amortization      of DAC, VOBA and VOCRA                                                                              |               | (250,525)     |       |   | (19,160)      |   |              | (2,962)       |                |   | -  |   |   | (272,647) |
| Depreciation      and amortization                                                                                    |               | 1,312    |       |   | 76       |   |              | 151      |                |   | -  |   |   | 1,539  |
| Net      losses on derivatives                                                                                        |               | 31,141   |       |   | 2,605    |   |              | 33,746   |                |   | -  |   |   | 67,492  |
| Net      realized gains on available-for-sale investments                                                             |               | (2,725)       |       |   | -        |   |              | (9)           |                |   | -  |   |   | (2,734) |
| Changes      in fair value of trading investments                                                                     |               | 514,267  |       |   | 36,501   |   |              | 43,473   |                |   | -  |   |   | 594,241  |
| Net      realized (gains) losses on trading investments                                                               |               | (5,100)       |       |   | 18       |   |              | (2,989)       |                |   |   |   |   | (8,071) |
| Undistributed      income in private equity limited        partnerships                                     |               |  (5,553) |       |   |  -  |   |              |  -  |                |   |  -  |   |   |  (5,553) |
| Interest      credited to contractholder deposits                                                                     |               | 130,091  |       |   | 11,484   |   |              | 7,552    |                |   | -  |   |   | 149,127  |
| Deferred      federal income taxes                                                                                    |               | (80,694)      |       |   | (6,788)       |   |              | (1,999)       |                |   | -  |   |   | (89,481) |
| Equity      in net loss of subsidiaries                                                                               |               | 35,746   |       |   | -        |   |              | -        |                |   | (35,746) |   |   | -  |
| Changes      in assets and liabilities:                                                                               |               |          |       |   |          |   |              |          |                |   |   |   |   |   |
| Additions      to DAC, VOBA and VOCRA                                                                                 |               | (55,898)      |       |   | (1,728)       |   |              | (20,731)      |                |   | -  |   |   | (78,357) |
| Accrued      investment loss (income)                                                                            |               | 21,284   |       |   | (249)         |   |              | (10,471)      |                |   | -  |   |   | 10,564  |
| Net      reinsurance receivable/payable                                                                               |               | 100,477  |       |   | 55,998   |   |              | (72,123)      |                |   | -  |   |   | 84,352  |
| Future      contract and policy benefits                                                                              |               | 6,441    |       |   | 1,805    |   |              | 2,289    |                |   | -  |   |   | 10,535  |
| Other,      net                                                                                                       |               | (37,485)      |       |   | (2,511)       |   |              | 20,169   |                |   | -  |   |   | (19,827) |
|                                                                                                                  |               |          |       |   |          |   |              |          |                |   |   |   |   |   |
| Net      cash provided by (used in) operating activities                                                         |               | 249,606  |       |   | 67,384   |   |              | (28,826)      |                |   | -  |   |   | 288,164  |
|                                                                                                                  |               |          |       |   |          |   |              |          |                |   |   |   |   |   |
| Cash      Flows From Investing Activities:                                                                            |               |          |       |   |          |   |              |          |                |   |   |   |   |   |
| Sales,      maturities and repayments of:                                                                             |               |          |       |   |          |   |              |          |                |   |   |   |   |   |
| Available-for-sale      fixed maturities                                                                              |               | 11,407   |       |   | 994      |   |              | 1,246    |                |   | -  |   |   | 13,647  |
| Trading      fixed maturities                                                                                         |               | 428,438  |       |   | 46,454   |   |              | 104,338  |                |   | -  |   |   | 579,230  |
| Mortgage      loans                                                                                                   |               | 158,626  |       |   | 2,627    |   |              | 12       |                |   | -  |   |   | 161,265  |
| Other      invested assets                                                                                            |               | 13,737   |       |   | -        |   |              | -        |                |   | -  |   |   | 13,737  |
| Purchases      of:                                                                                                    |               |          |       |   |          |   |              |          |                |   |   |   |   |   |
| Available-for-sale      fixed maturities                                                                              |               | (9,347)       |       |   | (3,036)       |   |              | (32,680)      |                |   | -  |   |   | (45,063) |
| Trading      fixed maturities                                                                                         |               | (294,419)     |       |   | (69,316)      |   |              | (667,436)     |                |   | -  |   |   | (1,031,171) |
| Mortgage      loans                                                                                                   |               | (16,024)      |       |   | (3,400)       |   |              | (5,500)       |                |   | -  |   |   | (24,924) |
| Real      estate                                                                                                      |               | (2,132)       |       |   | -        |   |              | (127)         |                |   | -  |   |   | (2,259) |
| Other      invested assets                                                                                            |               | (270,734)     |       |   | 10,515   |   |              | -        |                |   | -  |   |   | (260,219) |
| Net      change in other investments                                                                                  |               | 243,665  |       |   | (10,515)      |   |              | -        |                |   | -  |   |   | 233,150  |
| Net      change in policy loans                                                                                       |               | (448)         |       |   | 3        |   |              | 514      |                |   | -  |   |   | 69  |
|                                                                                                                  |               |          |       |   |          |   |              |          |                |   |   |   |   |   |
| Net      cash provided by (used in) investing activities                                                              | $                  | 262,769  |       | $      | (25,674)      |   | $                 | (599,633)     |                | $ | -  |   | $ | (362,538) |

----

|                                                          | SLUSas      Parent |          | SLNY   |   | OtherSubs    |   | Elimination |          | ConsolidatedCompany |
|---------------------------------------------------------------|--------------------|---------------|--------|--------|--------------|--------|-------------|---------------|---------------------|
|                                                          |               |          |   |   |         |   |        |          |                |   |   |   |   |   |
| Cash      Flows From Financing Activities:                    |               |          |   |   |         |   |        |          |                |   |   |   |   |   |
| Additions      to contractholder deposit funds                | $                  | 350,703  |   | $      | 43,505  |   | $           | 25,120   |                | $ | -  |   | $ | 419,328  |
| Withdrawals      from contractholder deposit funds            |               | (814,575)     |   |   | (97,146)     |   |        | (1,613)       |                |   | -  |   |   | (913,334) |
| Other,      net                                               |               | (16,656)      |   |   | (5,014)      |   |        | -        |                |   | -  |   |   | (21,670) |
|                                                          |               |          |   |   |         |   |        |          |                |   |   |   |   |   |
| Net      cash (used in) provided by financing activities |               | (480,528)     |   |   | (58,655)     |   |        | 23,507   |                |   | -  |   |   | (515,676) |
|                                                          |               |          |   |   |         |   |        |          |                |   |   |   |   |   |
| Net      change in cash and cash equivalents                  |               | 31,847   |   |   | (16,945)     |   |        | (604,952)     |                |   | -  |   |   | (590,050) |
|                                                          |               |          |   |   |         |   |        |          |                |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period           |               | 415,494  |   |   | 65,901  |   |        | 688,306  |                |   | -  |   |   | 1,169,701  |
|                                                          |               |          |   |   |         |   |        |          |                |   |   |   |   |   |
| Cash      and cash equivalents, end of period                 | $                  | 447,341  |   | $      | 48,956  |   | $           | 83,354   |                | $ | -  |   | $ | 579,651  |
|                                                          |               |          |   |   |         |   |        |          |                |   |   |   |   |   |

----

----

----

|                                                                                                     | Three-month      periods ended March 31,                                                                  |
|----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|
|                                                                                                     | 2009                                                                                                      | 2008 |
| Net      expense on swap agreements                                                                      | $                (23,261) | (6,257) |
| Change      in fair value of swap agreements   (interest      rate, currency, and equity) |  144,029                                                                                             |  (199,218) |
| Change      in fair value of options, futures and   embedded      derivatives             |  22,531                                                                                              |  125,275 |
|                                                                                                     |                                                                                                      |   |
| Total      derivative income (loss)                                                                      | $               143,299        | (80,200) |

----

----

----

----

----

----

|                                                                                                                                                    | 2009          |          | 2008          |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|---------------|---------------|
| Revenues                                                                                                                                                |          |          |          |
|                                                                                                                                                    |          |          |          |
| Premiums      and annuity considerations                                                                                                                | $             | 1,667    |          | $ | 4,931  |
| Net      investment income (loss)                                                                                                                       | 141,444  |          | (307,532)     |
| Net      derivative income (loss)                                                                                                                       | 126,395  |          | (48,456)      |
| Net      realized investment (losses) gains                                                                                                             | (2,680)       |          | 2,512    |
| Fee      and other income                                                                                                                               | 71,604   |          | 92,389   |
|                                                                                                                                                    |          |          |          |
| Total      revenues                                                                                                                                     | 338,430       |          | (256,156)     |
|                                                                                                                                                    |          |          |          |
| Benefits      and Expenses                                                                                                                              |          |          |          |
|                                                                                                                                                    |          |          |          |
| Interest      credited                                                                                                                                  | 111,480  |          | 135,924  |
| Interest      expense                                                                                                                                   | 8,091    |          | 11,505   |
| Policyowner      benefits                                                                                                                               | 83,687   |          | 42,382   |
| Amortization      of deferred policy acquisition   costs      and value of business and customer   renewals      acquired | (110,368)     |          | (266,340)     |
| Other      operating expenses                                                                                                                           | 26,095   |          | 37,580   |
|                                                                                                                                                    |          |          |          |
| Total      benefits and expenses                                                                                                                        | 118,985  |          | (38,949)      |
|                                                                                                                                                    |          |          |          |
| Income      (loss) before income tax expense (benefit)                                                                                                  | 219,445  |          | (217,207)     |
|                                                                                                                                                    |          |          |          |
| Income      tax expense (benefit)                                                                                                                       | 71,582   |          | (79,496)      |
|                                                                                                                                                    |          |          |          |
| Net      income (loss)                                                                                                                                  | $             | 147,863  |          | $ | (137,711) |

----

----

|                                                                                                     | 2009                                                                                                            | 2008                                                                                                                       |
|----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|
| Net      expense on swap agreements                                                                      | $                 (19,814) | $                   (5,863) |
| Change      in fair value of swap agreements   (interest      rate, currency, and equity) |  99,326                                                                                                    |  (183,949)                                                                                                            |
| Change      in fair value of options, futures and   embedded      derivatives             |  46,882                                                                                                    |  141,356                                                                                                              |
|                                                                                                     |                                                                                                            |                                                                                                                       |
| Total      derivative income (loss)                                                                      | $                 126,394  | $               (48,456)                        |

----

----

----

|                                |      2009                                    |   |     2008                                                                      |
|-------------------------------------|-----------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|
| Total      revenues                 | $         (138,769)      |   | $              15,982  |
| Total      benefits and expenses    | 9,841                                                            |   | 57,687                                                                                       |
| Loss      before income tax benefit | (148,610)                                                             |   | (41,705)                                                                                          |
|                                |                                                                  |   |                                                                                              |
| Net      loss                       | $          (96,603) |   | $             (27,074)           |

----

|                                                       | 2009                                                                                             |   | 2008                                                                                                    |
|------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|
| Total      revenues                                        | $              33,390      |   | $               24,496  |
| Total      benefits and expenses                           | 26,891                                                                                           |   | 29,248                                                                                             |
| Income      (loss) before income taxexpense      (benefit) |  6,499                                                                                      |   |  (4,752)                                                                                           |
|                                                       |                                                                                             |   |                                                                                                    |
| Net      income (loss)                                     | $               4,224 |   | $               (3,089)      |

----

|                                                                          | 2009                                                                                               |   | 2008                                                                                                         |
|-------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|
| Total      revenues                                                           | $               (3,987) |   | $              18,429             |
| Total      benefits and expenses                                              | 6,272                                                                                         |   | 7,525                                                                                                   |
| (Loss)      income before income tax         (benefit) expense | (10,259)                                                                                           |   |  10,904                                                                                            |
|                                                                          |                                                                                               |   |                                                                                                         |
| Net      (loss) income                                                        | $             (5,870)             |   | $                8,347  |

----

----

----

|  (in      thousands)                      |  Less      Than Twelve Months               |  Twelve      Months Or More                                                           |  Total                                                  |
|------------------------------------------------|--------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------|
| Corporate      Securities                      | FairValue                                        | GrossUnrealizedLosses                                                                      |  Fair      Value                                        | GrossUnrealizedLosses | FairValue | GrossUnrealizedLosses |
| Basic      Industry                            | $       4,941 |  $             (800) | $         3,547 | $     (2,332) | $      8,488 | $     (3,132) |
| Capital      Goods                             |  9,335                                      |    (512)                                                                    | 10,988                                                       |  (7,537) | 20,323 |  (8,049) |
| Communications                                 | 38,028                                           | (6,989)                                                                                    | 44,380                                                       |   (6,092) | 82,408 | (13,081) |
| Consumer      Cyclical                         |  13,448                                     |  (3,529)                                                                              | 21,742                                                       |  (10,414) | 35,190 |  (13,943) |
| Consumer      Noncyclical                      |  15,460                                     |    (326)                                                                    | 18,888                                                       | (2,018) | 34,348 |  (2,344) |
| Energy                                         | 26,887                                           |  (7,251)                                                                              |  8,946                                                  |   (2,691) |  35,833 |  (9,942) |
| Finance                                        |    102,098                        |  (15,424)                                                                             |  127,688                                                | (83,228) | 229,786 |  (98,652) |
| Industrial      Other                          |  3,647                                      |      (342)                                                        |     435                                  |         (61) |   4,082 |        (403) |
| Technology                                     | 434                                              | (30)                                                                                       | 4,526                                                        |   (1,737) |  4,960 |  (1,767) |
| Transportation                                 | 19,372                                           |  (989)                                                                                |  50,586                                                 |   (11,000) |   69,958 |  (11,989) |
| Utilities                                      |                                             |                                                                                       |                                                         |   |   |   |
|                                           |                                             |                                                                                       |                                                         |   |   |   |
| Total      Corporate                           | 233,650                                          | (36,192)                                                                                   | 291,726                                                      | (127,110) | 525,376 | (163,302) |
|                                           |                                             |                                                                                       |                                                         |   |   |   |
| Non-Corporate                                  |                                             |                                                                                       |                                                         |   |   |   |
| Asset      Backed Securities                   |                                             |                                                                                       |                                                         |   |   |   |
| Collateralized      Mortgage Obligations       | 627                                              | (354)                                                                                      | 14,585                                                       | (4,464) | 15,212 | (4,818) |
| Mortgage      Backed Securities                | 763                                              | (6)                                                                                        | -                                                            | - | 763 | (6) |
| U.S.      Treasury & Agency Securities     | -                                                | -                                                                                          | 196                                                          | (26) | 196 | (26) |
| Foreign      government & AgencySecurities | 500                                              | (10)                                                                                       | -                                                            | - | 500 | (10) |
|                                           |                                             |                                                                                       |                                                         |   |   |   |
|  Total      Non-Corporate                 | 1,890                                            | (370)                                                                                      | 14,781                                                       | (4,490) | 16,671 | (4,860) |
|                                           |                                             |                                                                                       |                                                         |   |   |   |
| Grand      Total                               | $   235,540                       | $        (36,562)                                  | $     306,507                       | $      (131,600) | $   542,047 | $      (168,162) |

----

----

| Issue/Sector    | Amortized      Cost                                                                  | Fair      Value                                                          | Unrealized      Loss                                                                         |
|-----------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|
| A.      Finance | $             9,000 | $           3,015 | $              (5,985) |
| B.      Finance |    7,951                                                              |       2,399                                |   (5,552)                                                                          |
| C.      Finance |   9,144                                                                    |       4,729                                |   (4,415)                                                                          |
| D.      Finance |         10,130                               |       5,768                                |    (4,362)                                                                    |
| E.      Finance |     6,345                                                        |       2,046                                |        (4,299)                                            |
| F.      Finance |     7,248                                                        |       3,104                                |       (4,144)                                                  |
| G.      Finance |  7,200                                                                          |       3,081                                |     (4,119)                                                              |

----

----

----

----

----

| 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-Oxley Act of 2002       |
|   |                                                                                                                                   |
| 32.2   | Certification      Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002       |

----

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

| May 14,      2009 | /s/ Westley V.      Thompson                                                                                          |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Date              | Westley      V. Thompson, President, SLF U.S.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|              | (principal      executive officer)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

| May 14,      2009 | /s/ Ronald H.      Friesen                                                                                               |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Date              | Ronald      H. Friesen , Senior Vice President and Chief Financial    Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|              | (principal      financial officer)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----