----

----

----

| For      the quarterly period endedMarch      31, 2010 | Commission      File Numbers: 2-99959,      33-29851, 33-31711, 33-41858, 33-43008, 33-58853, 333-11699, 333-77041,      333-62837, 333-45923, 333-88069, 333-39306, 333-46566, 333-82816,      333-82824, 333-111636, 333-130699, 333-130703, 333-130704, 333-133684,      333-133685, 333-133686, 333-39034, 333-144903-01, 333-144908-01,      333-144911-01, 333-144912-01, 333-155716, 333-333-155726, 333-155791,      333-155792, 333-155793, 333-155797, 333-156303, 333-156304, 333-156308,      333-160605, 333-160606, and333-160607 |
|--------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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      March 31,      2010 and 2009 (Unaudited)                     | 3      |
|          |                                                                                                                                                          |   |
|          | Condensed      Consolidated Balance Sheets as of March 31, 2010 and December 31,      2009      (Unaudited)                                                   | 4      |
|          |                                                                                                                                                          |   |
|          | Condensed      Consolidated Statements of Comprehensive Income for the three-month      periods ended March 31, 2010 and 2009 (Unaudited)                     | 5      |
|          |                                                                                                                                                          |   |
|          | Condensed      Consolidated Statements of Changes in Stockholder’s Equity for the      three-month periods ended March 31, 2010 and 2009    (Unaudited) | 6      |
|          |                                                                                                                                                          |   |
|          | Condensed      Consolidated Statements of Cash Flows for the three-month periods ended      March      31, 2010 and 2009 (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                                                                | 63     |
|          |                                                                                                                                                          |   |
| Item      3.  | Quantitative      and Qualitative Disclosures About Market Risk                                                                                               | 76     |
|          |                                                                                                                                                          |   |
| Item      4.  | Controls      and Procedures                                                                                                                                  | 76     |

| PART      II - | OTHER      INFORMATION                                           |   |
|----------------|------------------------------------------------------------------|--------|
|           |                                                             |   |
| Item      1.   | Legal      Proceedings                                           | 76     |
|           |                                                             |   |
| Item      1A.  | Risk      Factors                                                | 76     |
|           |                                                             |   |
| Item      2.   | Unregistered      Sales of Equity Securities and Use of Proceeds | 76     |
|           |                                                             |   |
| Item      3.   | Defaults      Upon Senior Securities                             | 76     |
|           |                                                             |   |
| Item      4.   | (Removed      and Reserved)                                      | 76     |
|           |                                                             |   |
| Item      5.   | Other      Information                                           | 76     |
|           |                                                             |   |
| Item      6.   | Exhibits                                                         | 77     |

----

|                                                                                                            | Unaudited  |
|-----------------------------------------------------------------------------------------------------------------|-----------------|
|                                                                                                            |  2010      |   |  2009 |
|                                                                                                            |            |   |   |   |   |
| Revenues                                                                                                        |            |   |   |   |   |
|                                                                                                            |            |   |   |   |   |
| Premiums      and annuity considerations                                                                        | $               | 35,064  |   | $ | 32,540  |
| Net      investment income (1)                                                                                  |            | 443,829  |   |   | 143,657  |
| Net      derivative (loss) income  (Note 5)                                                           |            | (41,450) |   |   | 129,846  |
| Net      realized investment gains (losses), excluding impairmentlosses      on available-for-sale securities   |            | 5,165  |   |   | (1,897) |
| Other-than-temporary      impairment losses (2)  (Note 5)                                             |            | (885) |   |   | -  |
| Fee      and other income                                                                                       |            | 115,753  |   |   | 76,201  |
|                                                                                                            |            |   |   |   |   |
| Total      revenues                                                                                             |            | 557,476  |   |   | 380,347  |
|                                                                                                            |            |   |   |   |   |
| Benefits      and Expenses                                                                                      |            |   |   |   |   |
|                                                                                                            |            |   |   |   |   |
| Interest      credited                                                                                          |            | 89,383  |   |   | 112,784  |
| Interest      expense                                                                                           |            | 17,097  |   |   | 12,080  |
| Policyowner      benefits                                                                                       |            | 34,603  |   |   | 101,987  |
| Amortization      of deferred policy acquisition costsand      value of business and customer renewals acquired |            | 171,709  |   |   | (107,424) |
| Other      operating expenses                                                                                   |            | 80,910  |   |   | 46,941  |
|                                                                                                            |            |   |   |   |   |
| Total      benefits and expenses                                                                                |            | 393,702  |   |   | 166,368  |
|                                                                                                            |            |   |   |   |   |
| Income      from continuing operations before income tax expense                                                |            | 163,774  |   |   | 213,979  |
|                                                                                                            |            |   |   |   |   |
| Income      tax expense                                                                                         |            | 52,123  |   |   | 72,703  |
|                                                                                                            |            |   |   |   |   |
| Net      income from continuing operations                                                                      |            | 111,651  |   |   | 141,276  |
|                                                                                                            |            |   |   |   |   |
| Loss      from discontinued operations, net of tax (Note 1)                                                |            | -  |   |   | (91,662) |
|                                                                                                            |            |   |   |   |   |
| Net      income                                                                                                 | $               | 111,651  |   | $ | 49,614  |

|   | (1)Net      investment income includes an increase (decrease) in market value of      trading fixed maturity securities of $270.4 million and $(29.9) million      for the three-month periods ended March 31, 2010 and 2009,      respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)The      $0.9 million other-than-temporary impairment (“OTTI”) losses for the      three-month period ended March 31, 2010 represent solely credit      losses.  The Company incurred no non-credit OTTI losses during      the three-month period ended March 31, 2010 and as such, no non-credit      OTTI losses were recognized in other comprehensive income for the      period. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                           | Unaudited                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|
| ASSETS                                                                                                                                                         |  March      31, 2010 |   |  December      31, 2009 |
| Investments                                                                                                                                                    |                      |   |   |   |   |
| Available-for-sale      fixed maturity securities at fair value (amortized cost of      $1,102,681and      $1,121,424 in 2010 and 2009, respectively) (Note 5) | $                         | 1,165,962  |   | $ | 1,175,516  |
| Trading      fixed maturity securities at fair value (amortized cost of $12,598,448      and$12,042,961in      2010 and 2009, respectively) (Note 5)           |                      | 11,956,591  |   |   | 11,130,522  |
| Mortgage      loans                                                                                                                                            |                      | 1,899,847  |   |   | 1,911,961  |
| Derivative      instruments – receivable (Note 5)                                                                                                        |                      | 235,498  |   |   | 259,227  |
| Limited      partnerships                                                                                                                                      |                      | 45,886  |   |   | 51,656  |
| Real      estate                                                                                                                                               |                      | 204,336  |   |   | 202,277  |
| Policy      loans                                                                                                                                              |                      | 710,292  |   |   | 722,590  |
| Other      invested assets                                                                                                                                     |                      | 26,406  |   |   | 47,421  |
| Short-term      investments                                                                                                                                    |                      | 2,051,747  |   |   | 1,267,311  |
| Cash      and cash equivalents                                                                                                                                 |                      | 733,097  |   |   | 1,804,208  |
| Total      investments and cash                                                                                                                                |                      | 19,029,662  |   |   | 18,572,689  |
|                                                                                                                                                           |                      |   |   |   |   |
| Accrued      investment income                                                                                                                                 |                      | 218,046  |   |   | 230,591  |
| Deferred      policy acquisition costs                                                                                                                         |                      | 2,065,562  |   |   | 2,173,642  |
| Value      of business and customer renewals acquired                                                                                                          |                      | 170,600  |   |   | 168,845  |
| Net      deferred tax asset (Note 12)                                                                                                                          |                      | 492,062  |   |   | 549,764  |
| Goodwill      (Note 11)                                                                                                                                        |                      | 7,299  |   |   | 7,299  |
| Receivable      for investments sold                                                                                                                           |                      | 14,036  |   |   | 12,611  |
| Reinsurance      receivable                                                                                                                                    |                      | 2,360,783  |   |   | 2,350,207  |
| Other      assets                                                                                                                                              |                      | 145,492  |   |   | 183,963  |
| Separate      account assets                                                                                                                                   |                      | 24,269,106  |   |   | 23,326,323  |
|                                                                                                                                                           |                      |   |   |   |   |
| Total      assets                                                                                                                                              | $                         | 48,772,648  |   | $ | 47,575,934  |
|                                                                                                                                                           |                      |   |   |   |   |
| LIABILITIES                                                                                                                                                    |                      |   |   |   |   |
|                                                                                                                                                           |                      |   |   |   |   |
| Contractholder      deposit funds and other policy liabilities                                                                                                 | $                         | 16,459,748  |   | $ | 16,709,589  |
| Future      contract and policy benefits                                                                                                                       |                      | 795,099  |   |   | 815,638  |
| Payable      for investments purchased                                                                                                                         |                      | 92,774  |   |   | 88,131  |
| Accrued      expenses                                                                                                                                          |                      | 59,837  |   |   | 61,903  |
| Debt      payable to affiliates                                                                                                                                |                      | 883,000  |   |   | 883,000  |
| Reinsurance      payable                                                                                                                                       |                      | 2,235,267  |   |   | 2,231,764  |
| Derivative      instruments – payable (Note 5)                                                                                                           |                      | 549,423  |   |   | 572,910  |
| Other      liabilities                                                                                                                                         |                      | 304,234  |   |   | 280,224  |
| Separate      account liabilities                                                                                                                              |                      | 24,269,106  |   |   | 23,326,323  |
|                                                                                                                                                           |                      |   |   |   |   |
| Total      liabilities                                                                                                                                         |                      | 45,648,488  |   |   | 44,969,482  |
|                                                                                                                                                           |                      |   |   |   |   |
| Commitments      and contingencies (Note 8)                                                                                                                    |                      |   |   |   |   |
|                                                                                                                                                           |                      |   |   |   |   |
| STOCKHOLDER’S      EQUITY                                                                                                                                |                      |   |   |   |   |
|                                                                                                                                                           |                      |   |   |   |   |
| Common      stock, $1,000 par value – 10,000 shares authorized;      6,437 sharesissued      and outstanding in 2010 and 2009                       | $                         | 6,437  |   | $ | 6,437  |
| Additional      paid-in capital                                                                                                                                |                      | 3,927,845  |   |   | 3,527,677  |
| Accumulated      other comprehensive income                                                                                                                    |                      | 41,133  |   |   | 35,244  |
| Accumulated      deficit                                                                                                                                       |                      | (851,255) |   |   | (962,906) |
|                                                                                                                                                           |                      |   |   |   |   |
| Total      stockholder’s equity                                                                                                                          |                      | 3,124,160  |   |   | 2,606,452  |
|                                                                                                                                                           |                      |   |   |   |   |
| Total      liabilities and stockholder’s equity                                                                                                          | $                         | 48,772,648  |   | $ | 47,575,934  |

----

|                                                                                                                                          | Unaudited |
|-----------------------------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                                                          |      |  2010 |   |   |  2009 |
|                                                                                                                                          |      |   |   |   |   |
| Net      income                                                                                                                               | $         | 111,651  |   | $ | 49,614  |
|                                                                                                                                          |      |   |   |   |   |
| Other      comprehensive income (loss):                                                                                                       |      |   |   |   |   |
|                                                                                                                                          |      |   |   |   |   |
| Change      in unrealized holding gains (losses) on available-for-salefixed      maturity securities, net of tax and policyholder amounts (1) |      | 8,168  |   |   | (28,601) |
| Reclassification      adjustment for OTTI losses, net of tax (2)                                                                              |      | 104  |   |   | -  |
| Reclassification      adjustments of realized investment gains into netincome,      net of tax (3)                                       |      | (2,383) |   |   | (757) |
|                                                                                                                                          |      |   |   |   |   |
| Other      comprehensive income (loss)                                                                                                        |      | 5,889  |   |   | (29,358) |
|                                                                                                                                          |      |   |   |   |   |
| Comprehensive      income                                                                                                                     | $         | 117,540  |   | $ | 20,256  |

| (1)   | Net      of tax (expense) benefit of $(4.4) million and $15.4 million for the      three-month periods ended March 31, 2010 and 2009,      respectively. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (3)   | Net      of tax benefit of $1.3 million and $0.4 million for the three-month      periods ended March 31, 2010 and 2009,  respectively. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

----

|                                   | CommonStock |        | AdditionalPaid-InCapital |   | AccumulatedOtherComprehensive(Loss) Income (1) |   | AccumulatedDeficit |         | TotalStockholder’sEquity |
|----------------------------------------|-------------|-------------|--------------------------|--------|------------------------------------------------|--------|--------------------|--------------|--------------------------------|
|                                   |        |        |                     |   |                                           |   |               |         |                           |   |   |   |   |   |
| Balance      at December 31, 2008      | $           | 6,437  |                     | $      | 2,872,242                                      |   | $                  | (129,884)    |                           | $ | (1,953,540) |   | $ | 795,255 |
|                                   |        |        |                     |   |                                           |   |               |         |                           |   |   |   |   |   |
| Net      income                        |        |        |                     |   |                                           |   |               |         |                           |   | 49,614 |   |   | 49,614 |
| Capital      contributions 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 |
|                                   |        |        |                     |   |                                           |   |               |         |                           |   |   |   |   |   |
|                                   |        |        |                     |   |                                           |   |               |         |                           |   |   |   |   |   |
|                                   |        |        |                     |   |                                           |   |               |         |                           |   |   |   |   |   |
| Balance      at December 31, 2009      | $           | 6,437  |                     | $      | 3,527,677                                      |   | $                  | 35,244  |                           | $ | (962,906) |   | $ | 2,606,452  |
|                                   |        |        |                     |   |                                           |   |               |         |                           |   |   |   |   |   |
|    Net      income      |        |        |                     |   |                                           |   |               |         |                           |   | 111,651  |   |   | 111,651  |
| Tax      benefit from stock options    |        |        |                     |   | 168                                       |   |               |         |                           |   |   |   |   | 168  |
| Capital      contribution from Parent  |        |        |                     |   | 400,000                                   |   |               |         |                           |   |   |   |   | 400,000  |
| Other      comprehensive income        |        |        |                     |   |                                           |   |               | 5,889   |                           |   |   |   |   | 5,889  |
|                                   |        |        |                     |   |                                           |   |               |         |                           |   |   |   |   |   |
| Balance      at March 31, 2010         | $           | 6,437  |                     | $      | 3,927,845                                 |   | $                  | 41,133  |                           | $ | (851,255) |   | $ | 3,124,160   |
|                                   |        |        |                     |   |                                           |   |               |         |                           |   |   |   |   |   |

|   | (1) As of March 31, 2010, the total      amount of after tax non-credit OTTI losses recorded in the Company’s      accumulated other comprehensive income was $8.8      million. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                            | Unaudited |
|-----------------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                            | 2010      |   | 2009 |
|                                                                                                            |      |   |   |   |   |
| Cash      Flows From Operating Activities:                                                                      |      |   |   |   |   |
| Net      income                                                                                                 | $         | 111,651  |   | $ | 49,614  |
| Adjustments      to reconcile net income to net cash provided by operatingactivities:                           |      |   |   |   |   |
| Net      amortization of premiums on investments                                                                |      | 2,587  |   |   | 9,086  |
| Amortization      of deferred policy acquisition costs and value ofbusiness      and customer renewals acquired |      | 171,709  |   |   | (107,424) |
| Depreciation      and amortization                                                                              |      | 1,214  |   |   | 1,750  |
| Net      losses (gains) on derivatives                                                                          |      | 6,121  |   |   | (172,661) |
| Net      realized (gains) losses and OTTI credit losses on      available-for-sale      investments             |      | (4,280) |   |   | 1,897  |
| Net      (increase) decrease in fair value of trading investments                                               |      | (270,435) |   |   | 29,880  |
| Net      realized losses on trading investments                                                                 |      | 33,927  |   |   | 44,897  |
| Undistributed      loss (income) on private equity limited partnerships                                         |      | 1,631  |   |   | (1,481) |
| Interest      credited to contractholder deposits                                                               |      | 89,383  |   |   | 112,784  |
| Deferred      federal income taxes                                                                              |      | 54,531  |   |   | 77,026  |
| Changes      in assets and liabilities:                                                                         |      |   |   |   |   |
| Additions      to deferred policy acquisition costs and value of businessand      customer renewals acquired    |      | (56,139) |   |   | (88,118) |
| Accrued      investment income                                                                                  |      | 12,545  |   |   | 33,156  |
| Net      change in reinsurance receivable/payable                                                               |      | 28,868  |   |   | 38,270  |
| Future      contract and policy benefits                                                                        |      | (20,539) |   |   | 30,889  |
| Other,      net                                                                                                 |      | 81,228  |   |   | (141,809) |
| Adjustments      related to discontinued operations                                                             |      | -  |   |   | 219,553  |
|                                                                                                            |      |   |   |   |   |
| Net      cash provided by operating activities                                                                  |      | 244,002  |   |   | 137,309  |
|                                                                                                            |      |   |   |   |   |
| Cash      Flows From Investing Activities:                                                                      |      |   |   |   |   |
| Sales,      maturities and repayments of:                                                                       |      |   |   |   |   |
| Available-for-sale      fixed maturity securities                                                               |      | 70,492  |   |   | 9,715  |
| Trading      fixed maturity securities                                                                          |      | 737,625  |   |   | 213,506  |
| Mortgage      loans                                                                                             |      | 25,096  |   |   | 62,182  |
| Other      invested assets                                                                                      |      | (64,561) |   |   | 208,502  |
| Purchases      of:                                                                                              |      |   |   |   |   |
| Available-for-sale      fixed maturity securities                                                               |      | (46,399) |   |   | (925) |
| Trading      fixed maturity securities                                                                          |      | (1,332,465) |   |   | (19,715) |
| Mortgage      loans                                                                                             |      | (15,431) |   |   | (31,646) |
| Real      estate                                                                                                |      | (904) |   |   | (414) |
| Other      invested assets                                                                                      |      | (16,616) |   |   | (14,940) |
| Net      change in other investments                                                                            |      | -  |   |   | (61,010) |
| Net      change in policy loans                                                                                 |      | 12,298  |   |   | 4,384  |
| Net      change in short-term investments (Note 1)                                                              |      | (784,436) |   |   | (432,897) |
|                                                                                                            |      |   |   |   |   |
| Net      cash used in investing activities                                                                      | $         | (1,415,301) |   | $ | (63,258) |

----

|                                                | Unaudited  |
|-----------------------------------------------------|------------|
|                                                |  2010 |   |  2009 |
|                                                |       |   |   |   |   |
| Cash      Flows From Financing Activities:          |       |   |   |   |   |
| Additions      to contractholder deposit funds      | $          | 328,615  |   | $ | 740,398  |
| Withdrawals      from contractholder deposit funds  |       |  (610,810) |   |   | (720,199) |
| Capital      contribution from Parent               |       | 400,000  |   |   | 623,652  |
| Debt      proceeds                                  |       | -  |   |   | 50,000  |
| Other,      net                                     |       | (17,617) |   |   | (22,605) |
|                                                |       |   |   |   |   |
| Net      cash provided by financing activities      |       | 100,188  |   |   | 671,246  |
|                                                |       |   |   |   |   |
| Net      change in cash and cash equivalents        |       | (1,071,111) |   |   | 745,297  |
|                                                |       |   |   |   |   |
| Cash      and cash equivalents, beginning of period |       | 1,804,208  |   |   | 1,024,668  |
|                                                |       |   |   |   |   |
|                                                |       |   |   |   |   |
| Cash      and cash equivalents, end of period       | $          | 733,097  |   | $ | 1,769,965  |
|                                                |       |   |   |   |   |

----

|                                  | 2009   |
|---------------------------------------|--------|
|                                  |   |   |
| Total      revenues                   | $      |      (151,284) |
| Total      benefits and expenses      |   |            (4,380) |
| Loss      before income taxes expense |   |        (146,904) |
|                                  |   |   |
| Net      loss                         | $      |          (91,662) |

----

----

|                                                     |               As Previously                                                              |                               |                                         |
|----------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|------------------------------------|----------------------------------------------|
|                                                |        Reported                                                                               | Adjustments                        | As      Restated                             |
| Net      change in short-term investments                | $                    -  | $    (432,897) | $   (432,897)                 |
| Net      cash provided by (used in ) investingactivities | $         369,639                                                                   | $    (432,897) | $     (63,258)      |
| Net      change in cash and cash equivalents             | $      1,178,194                                                                                   | $    (432,897) | $     745,297  |
| Cash      and cash equivalents, beginning of period      | $      1,624,149                                                                                   | $    (599,481) | $  1,024,668                  |
| Cash      and cash equivalents, end of period            | $      2,802,343                                                                                   | $      (1,032,378)                 | $  1,769,965                  |
|                                                     |                                                                                                                             |                               |                                         |

----

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

| Ø   | The      valuation techniques and inputsused; |
|--------------------|-----------------------------------------------|

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

| Ø   | The      activity in Level 3 fair valuemeasurements. |
|--------------------|------------------------------------------------------|

----

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

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

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

----

----

----

----

----

|                                         | Value      ofDistribution |   | VOBA   |   | VOCRA |
|----------------------------------------------|---------------------------|--------|--------|--------|-------|
| Three-month      period ended March 31, 2010 | $                         | 75     |   | $      | -     |   | $ | 297 |
| Three-month      period ended March 31, 2009 | $                         | 75     |   | $      | 22    |   | $ | 726 |

----

----

|                                                                                                    | Three-month      period ended March 31, 2010       |   |                                                                               |
|---------------------------------------------------------------------------------------------------------|----------------------------------------------------|--------|------------------------------------------------------------------------------------|
|                                                                                                    |                                               |   |                                                                               |   |   |   |   |   |   |
|                                                                                                    | Wealth                                             |   | Individual                                                                         |   | Group |   |   |   |   |
|                                                                                                    | Management                                         |   | Protection                                                                         |   | Protection |   | Corporate |   | Totals |
| Total      revenues                                                                                     | $      542,125  |   | $       15,226                             |   | $     32,261  |   | $     (32,136) |   | $      557,476  |
| Total      benefits and expenses                                                                        | 337,465                                       |   | 14,215                                                                        |   | 31,148  |   | 10,874  |   | 393,702  |
| Income      (loss) before income       tax expense (benefit)                                       | 204,660                                       |   | 1,011                                                                         |   | 1,113  |   |  (43,010) |   | 163,774  |
| Net      income (loss)                                                                                  | $      138,135  |   | $            711  |   | $          723  |   | $     (27,918) |   | $      111,651  |
|                                                                                                    |                                               |   |                                                                               |
|                                                                                                    | Three-month      period ended March 31, 2009       |   |                                                                               |
|                                                                                                    |                                               |   |                                                                               |   |   |   |   |   |   |
|                                                                                                    | Wealth                                             |   | Individual                                                                         |   | Group |   |   |   |   |
|                                                                                                    | Management                                         |   | Protection                                                                         |   | Protection |   | Corporate |   | Totals |
| Total      revenues                                                                                     | $      338,430  |   | $    12,515                                               |   | $     33,390  |   | $     (3,988) |   | $      380,347  |
| Total      benefits and expenses                                                                        | 118,985                                       |   | 14,221                                                                        |   | 26,891  |   | 6,271  |   | 166,368  |
| Income      (loss) from continuing       operations before income tax       expense (benefit) | 219,445                                       |   | (1,706)                                                                            |   | 6,499  |   | (10,259) |   | 213,979  |
|                                                                                                    |                                               |   |                                                                               |   |   |   |   |   |   |
| Net      income (loss) from       continuing operations                                            | 147,863                                       |   | (4,941)                                                                            |   | 4,224  |   | (5,870) |   | 141,276  |
| Loss      from discontinued       operations, net of tax                                      | -                                             |   | (91,662)                                                                           |   | -  |   | -  |   | (91,662) |
|                                                                                                    |                                               |   |                                                                               |   |   |   |   |   |   |
| Net      income (loss)                                                                                  | $      147,863  |   | $    (96,603)                                                  |   | $       4,224  |   | $     (5,870) |   | $      49,614  |

----

----

| ·   | 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,  and |
|----------------|-----------------------------------------------------------------------|

| 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 maturity securities:            |   |         |                                                                                                                                                                  |         |   |                      |   |   |   |   |   |   |
| Asset-backed      securities                                  |   | $            | -                                                                                                                                                                |         | $      | 897                  |   | $      | 29  |   | $ | 926  |
| Residential      mortgage-backed securities                   |   |         | -                                                                                                                                                                |         |   | 44,868               |   |   |  -  |   |   | 44,868  |
| Commercial      mortgage-backed securities                    |   |         | -                                                                                                                                                                |         |   | 14,199               |   |   | 1,135  |   |   | 15,334  |
| Foreign      government & agency securities               |   |         | -                                                                                                                                                                |         |   | 551                  |   |   | -  |   |   | 551  |
| U.S.      states and political subdivisions securities        |   |         | -                                                                                                                                                                |         |   | 217                  |   |   |  -  |   |   | 217  |
| U.S.      treasury and agency securities                      |   |         | 39,073                                                                                                                                                           |         |   | -                    |   |   |  -  |   |   | 39,073  |
| Corporate      securities                                     |   |         | -                                                                                                                                                                |         |   | 1,064,054            |   |   | 939  |   |   | 1,064,993  |
| Total      available-for-sale fixed maturity securities       |   |         | 39,073                                                                                                                                                           |         |   | 1,124,786            |   |   | 2,103  |   |   | 1,165,962  |
|                                                          |   |         |                                                                                                                                                                  |         |   |                      |   |   |   |   |   |   |
| Trading      fixed maturity securities:                       |   |         |                                                                                                                                                                  |         |   |                      |   |   |   |   |   |   |
| Asset-backed      securities                                  |   |         | -                                                                                                                                                                |         |   |   351,180  |   |   | 48,924  |   |   | 400,104  |
| Residential      mortgage-backed securities                   |   |         | -                                                                                                                                                                |         |   |  955,600        |   |   | 105,554  |   |   | 1,061,154  |
| Commercial      mortgage-backed securities                    |   |         | -                                                                                                                                                                |         |   | 657,708              |   |   | 12,892  |   |   |  670,600  |
| Foreign      government & agency securities               |   |         | -                                                                                                                                                                |         |   | 67,861               |   |   |  15,093  |   |   | 82,954  |
| U.S.      states and political subdivisions securities        |   |         | -                                                                                                                                                                |         |   |   617      |   |   | -  |   |   | 617  |
| U.S.      treasury and agency securities                      |   |         | 1,058,776                                                                                                                                                        |         |   |  34,270         |   |   | -  |   |   | 1,093,046  |
| Corporate      securities                                     |   |         | -                                                                                                                                                                |         |   | 8,551,463            |   |   |  96,653  |   |   | 8,648,116  |
| Total      trading fixed maturity securities                  |   |         | 1,058,776                                                                                                                                                   |         |   | 10,618,699           |   |   | 279,116  |   |   | 11,956,591  |
|                                                          |   |         | -                                                                                                                                                                |         |   |                      |   |   |   |   |   |   |
| Derivative      instruments - receivable:                     |   |         |                                                                                                                                                                  |         |   |                      |   |   |   |   |   |   |
| Interest      rate contracts                                  |   |         | -                                                                                                                                                                |         |   | 136,611              |   |   | -  |   |   | 136,611  |
| Foreign      currency contracts                               |   |         | -                                                                                                                                                                |         |   | 34,462               |   |   | -  |   |   | 34,462  |
| Equity      contracts                                         |   |         | 10,106                                                                                                                                                           |         |   | 33,639               |   |   |  11,956  |   |   | 55,701  |
| Futures                                                       |   |         | 8,724                                                                                                                                                            |         |   | -                    |   |   | -  |   |   |  8,724  |
| Total      derivative instruments - receivable                |   |         | 18,830                                                                                                                                                           |         |   | 204,712              |   |   | 11,956  |   |   | 235,498  |
|                                                          |   |         |                                                                                                                                                                  |         |   |                      |   |   |   |   |   |   |
| Other      invested assets                                    |   |         |                           871  |         |   | -                    |   |   | -  |   |   | 871  |
| Short-term      investments                                   |   |         | 2,051,747                                                                                                                                                        |         |   | -                    |   |   | -  |   |   | 2,051,747  |
| Cash      and cash equivalents                                |   |         | 733,097                                                                                                                                                          |         |   | -                    |   |   | -  |   |   | 733,097  |
| Total      investments and cash                               |   |         | 3,902,394                                                                                                                                                        |         |   | 11,948,197           |   |   | 293,175  |   |   | 16,143,766  |
|                                                          |   |         |                                                                                                                                                                  |         |   |                      |   |   |   |   |   |   |
| Separate      account assets:                                 |   |         |                                                                                                                                                                  |         |   |                      |   |   |   |   |   |   |
| Mutual      fund investments                                  |   |         | 18,548,247                                                                                                                                                            |         |   | 34,125                    |   |   | - |   |   | 18,582,372 |
| Equity      investments                                       |   |         | 193,637                                                                                                                                                               |         |   | 6,910                     |   |   | 7 |   |   | 200,554 |
| Fixed      income investments                                 |   |         | 537,319                                                                                                                                                               |         |   | 5,181,105                 |   |   | 313,747 |   |   | 6,032,171 |
| Alternative      investments                                  |   |         | 8,197                                                                                                                                                                 |         |   | 89,590                    |   |   | 259,762 |   |   | 357,549 |
| Other      investments                                        |   |         | 3,890                                                                                                                                                                 |         |   | 10                        |   |   | 725 |   |   | 4,625 |
| Total      separate account assets (1)      (2)               |   |         | 19,291,290                                                                                                                                                            |         |   | 5,311,740                 |   |   | 574,241 |   |   | 25,177,271 |
|                                                          |   |         |                                                                                                                                                                  |         |   |                      |   |   |   |   |   |   |
| Total      assets measured at fair value on a recurring basis |   | $            | 23,193,684                                                                                                                                                            |         | $      | 17,259,937           |   | $      |  867,416 |   | $ | 41,321,037 |

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

|   | (2)      Excludes $908.2 million, primarily related to investment sales receivable,      net of investment purchases payable, that are not subject to FASB ASC      Topic 820. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                               |   | Level      1 |         | Level      2 |   | Level      3  |   | Total  |
|--------------------------------------------------------------------|--------|--------------|--------------|--------------|--------|---------------|--------|--------|
| Liabilities                                                        |   |         |         |         |   |          |   |   |   |   |   |   |
| Other      policy liabilities:                                     |   |         |         |         |   |          |   |   |   |   |   |   |
| Guaranteed      minimum withdrawal benefit liability               |   | $            | -       |         | $      | -        |   | $      | 106,601  |   | $ | 106,601  |
| Guaranteed      minimum accumulation benefit liability             |   |         | -       |         |   | -        |   |   | 46,030  |   |   | 46,030  |
| Derivatives      embedded in reinsurance contracts                 |   |         | -       |         |   | 29,580   |   |   | -  |   |   | 29,580  |
| Fixed      index annuities                                         |   |         | -       |         |   | -        |   |   | 139,012  |   |   | 139,012  |
| Total      other policy liabilities                                |   |         | -       |         |   | 29,580   |   |   | 291,643  |   |   | 321,223  |
|                                                               |   |         |         |         |   |          |   |   |   |   |   |   |
| Derivative      instruments – payable:                       |   |         |         |         |   |          |   |   |   |   |   |   |
| Interest      rate contracts                                       |   |         | -       |         |   | 511,140  |   |   | -   |   |   | 511,140  |
| Foreign      currency contracts                                    |   |         | -       |         |   | 2,505    |   |   | -  |   |   | 2,505  |
| Credit      contracts                                              |   |         | -       |         |   | -        |   |   | 34,612   |   |   | 34,612  |
| Futures                                                            |   |         | 1,166   |         |   | -        |   |   | -  |   |   | 1,166  |
| Total      derivative instruments – payable                  |   |         | 1,166   |         |   | 513,645  |   |   | 34,612  |   |   | 549,423  |
|                                                               |   |         |         |         |   |          |   |   |   |   |   |   |
| Other      liabilities:                                            |   |         |         |         |   |          |   |   |   |   |   |   |
| Bank      overdrafts                                               |   |         | 42,251  |         |   | -        |   |   | -  |   |   | 42,251  |
|                                                               |   |         |         |         |   |          |   |   |   |   |   |   |
| Total      liabilities measured at fair value on a recurring basis |   | $            | 43,417  |         | $      | 543,225  |   | $      | 326,255  |   | $ | 912,897  |
|                                                               |   |         |         |         |   |          |   |   |   |   |   |   |

----

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

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

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

----

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

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

----

| Assets                                                                             | Beginningbalance                                                                        | Total      realized and unrealizedgains      (losses) | Purchases,issuances,      andsettlements      (net)                                                                  | Transfers      inand/or      (out) oflevel      3                                                                                                        | Ending balance                                                                                                              | Change      in totalgains      (losses)included      inearnings      relating toinstruments      stillheld      at thereporting      date |
|------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|
| Includedinearnings                                                                 | Included      inothercomprehensiveincome                                                |
|                                                                               |                                                                                    |                                                  |                                                                                                                 |                                                                                                                                                     |                                                                                                                             |                                                                                                                                      |   |
| Available-for-sale      fixed maturitysecurities:                                  |                                                                                    |                                                  |                                                                                                                 |                                                                                                                                                     |                                                                                                                             |                                                                                                                                      |   |
| Asset-backed      securities                                                       | $       37        | $     (12)                   | $                  4  | $                        -  | $                    -  | $               29                                        | $                      -  |   |
| Residential      mortgage-backed securities                                        | -                                          | -                                                | -                                                                                                               | -                                                                                                                                                   | -                                                                                                                           | -                                                                                                                                    | -  |   |
| Commercial      mortgage-backed  securities                              | 1,930                                                | (243)                                                 | (552)                                                                                                                | -                                                                                                                                                   | -                                                                                                                           | 1,135                                                                                                                                | -  |   |
| Foreign      government & agency  securities                         | -                                               | -                                                | -                                                                                                               | -                                                                                                                                                   | -                                                                                                                           | -                                                                                                                                    | -  |   |
| U.S.      states and political subdivisions  securities                  | -                                          | -                                                | -                                                                                                               | -                                                                                                                                                   | -                                                                                                                           | -                                                                                                                                    | -  |   |
| U.S.      treasury and agency securities                                           | -                                     | -                                                | -                                                                                                               | -                                                                                                                                                   | -                                                                                                                           | -                                                                                                                                    | -  |   |
| Corporate      securities                                                          | 7,936                                                | (5)                                                   | (4)                                                                                                                  |  196                                                                                                                                           | (7,184)                                                                                                                          | 939                                                                                                                                  | -  |   |
| Total      available-for-sale fixed maturity  securities                 | 9,903                                                | (260)                                                 | (552)                                                                                                                | 196                                                                                                                                                 | (7,184)                                                                                                                          | 2,103                                                                                                                                | -  |   |
|                                                                               |                                                                                    |                                                  |                                                                                                                 |                                                                                                                                                     |                                                                                                                             |                                                                                                                                      |   |
| Trading      fixed maturity securities:                                            |                                                                                    |                                                  |                                                                                                                 |                                                                                                                                                     |                                                                                                                             |                                                                                                                                      |   |
| Asset-backed      securities                                                       | 111,650                                              | (8,909)                                               | -                                                                                                               | (15,660)                                                                                                                                                 | (38,157)                                                                                                                         | 48,924                                                                                                                               | 8,858  |
| Residential      mortgage-backed securities                                        | 154,551                                              | (242)                                                 | -                                                                                                               | (3,226)                                                                                                                                                  |  (45,529)                                                                                                                   | 105,554                                                                                                                              | 2,279  |
| Commercial      mortgage-backed  securities                              | 14,084                                               | (496)                                                 | -                                                                                                               | -                                                                                                                                                   |  (696)                                                                                                                      | 12,892                                                                                                                               |  (769) |
| Foreign      government & agency  securities                         | 15,323                                                    | (230)                                                 | -                                                                                                               | -                                                                                                                                                   | -                                                                                                                           | 15,093                                                                                                                               | 161  |
| U.S.      states and political subdivisions  securities                  | -                                          | -                                                | -                                                                                                               | -                                                                                                                                                   | -                                                                                                                           | -                                                                                                                                    | -  |
| U.S.      treasury and agency securities                                           | -                                          | -                                                | -                                                                                                               | -                                                                                                                                                   | -                                                                                                                           | -                                                                                                                                    | -  |
| Corporate      securities                                                          | 107,886                                                   | 1,571                                            | -                                                                                                               | 4,620                                                                                                                                               | (17,424)                                                                                                                         | 96,653                                                                                                                               | 1,475  |
| Total      trading fixed maturity securities                                       | 403,494                                                   | (8,306)                                               | -                                                                                                               | (14,266)                                                                                                                                                 | (101,806)                                                                                                                        | 279,116                                                                                                                              | 12,004  |
|                                                                               |                                                                                    |                                                  |                                                                                                                 |                                                                                                                                                     |                                                                                                                             |                                                                                                                                      |   |
| Derivative      instruments – receivable:                                    |                                                                                    |                                                  |                                                                                                                 |                                                                                                                                                     |                                                                                                                             |                                                                                                                                      |   |
| Interest      rate contracts                                                       | -                                                    | -                                                | -                                                                                                               | -                                                                                                                                                   | -                                                                                                                           | -                                                                                                                                    | -  |
| Foreign      currency contracts                                                    | -                                               | -                                                | -                                                                                                               | -                                                                                                                                                   | -                                                                                                                           | -                                                                                                                                    | -  |
| Equity      contracts                                                              |  8,821                                               | 1,531                                            | -                                                                                                               | 1,604                                                                                                                                               | -                                                                                                                           | 11,956                                                                                                                               | 1,531  |
| Futures                                                                            | -                                                    | -                                                | -                                                                                                               | -                                                                                                                                                   | -                                                                                                                           | -                                                                                                                                    | -  |
| Total      derivative instruments– receivable                                |  8,821                                               | 1,531                                            | -                                                                                                               | 1,604                                                                                                                                               | -                                                                                                                           | 11,956                                                                                                                               | 1,531  |
|                                                                               |                                                                                    |                                                  |                                                                                                                 |                                                                                                                                                     |                                                                                                                             |                                                                                                                                      |   |
| Other      invested assets                                                         | -                                                    | -                                                | -                                                                                                               | -                                                                                                                                                   | -                                                                                                                           | -                                                                                                                                    | -  |
| Short-term      investments                                                        | -                                               | -                                                | -                                                                                                               | -                                                                                                                                                   | -                                                                                                                           | -                                                                                                                                    | -  |
| Cash      and cash equivalents                                                     | -                                               | -                                                | -                                                                                                               | -                                                                                                                                                   | -                                                                                                                           | -                                                                                                                                    | -  |
| Total      investments and cash                                                    | 422,218                                                                  |  (7,035)                                         |  (552)                                                                                                          |  (12,466)                                                                                                                                           |  (108,990)                                                                                                                  | 293,175                                                                                                                              | 13,535  |
|                                                                               |                                                                                    |                                                  |                                                                                                                 |                                                                                                                                                     |                                                                                                                             |                                                                                                                                      |   |
| Separate      account assets:                                                      |                                                                                    |                                                  |                                                                                                                 |                                                                                                                                                     |                                                                                                                             |                                                                                                                                      |   |
| Mutual      fund investments                                                       | -                                                                   | -                                                     | -                                                                                                                    | -                                                                                                                                                        | -                                                                                                                                | -                                                                                                                                         | -  |
| Equity      investments                                                            | 7                                                                   | -                                                     | -                                                                                                                    | -                                                                                                                                                        | -                                                                                                                                | 7                                                                                                                                         | - |
| Fixed      income investments                                                      | 276,530                                                             | 6,667                                                 | -                                                                                                                    | 30,550                                                                                                                                                   | -                                                                                                                                | 313,747                                                                                                                                   | 5,752 |
| Alternative      investments                                                       | 267,196                                                             | (465)                                                 | -                                                                                                                    | (4,000)                                                                                                                                                  | (2,969)                                                                                                                          | 259,762                                                                                                                                   | (1,013) |
| Other      investments                                                             | 4,108                                                               | (2,355)                                               | -                                                                                                                    | (1,028)                                                                                                                                                  | -                                                                                                                                | 725                                                                                                                                       | (3,383) |
| Total      separate account assets (1)                                             | 547,841                                                             | 3,847                                                 | -                                                                                                                    | 25,522                                                                                                                                              | (2,969)                                                                                                                          | 574,241                                                                                                                                   | 1,356 |
|                                                                               |                                                                                    |                                                  |                                                                                                                 |                                                                                                                                                     |                                                                                                                             |                                                                                                                                      |   |
| Total      assets measured at fair value on  a recurring      basis | $970,059                                                            | $(3,188)                                              | $             (552)                                 | $               13,056                                                   | $       (111,959)                                                                             | $        867,416                                                                             | $            14,891  |
|                                                                               |                                                                                    |                                                  |                                                                                                                 |                                                                                                                                                     |                                                                                                                             |                                                                                                                                      |   |

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

----

| Liabilities                                                                        | Beginningbalance                             | Total      realized and unrealized(gains)      losses | Purchases,issuances,      andsettlements      (net)                                    | Transfers      inand/or      (out) oflevel      3                                           | Endingbalance                                                                                            | Change      in total gains(losses)      included inearnings      relating toinstruments      still held atthe      reporting date |
|------------------------------------------------------------------------------------|----------------------------------------------|-------------------------------------------------------|----------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|
| Includedinearnings                                                                 | Included      inothercomprehensiveincome     |
|                                                                               |                                         |                                                  |                                                                                   |                                                                                        |                                                                                                     |                                                                                                                              |   |
| Other      policy liabilities:                                                     |                                         |                                                  |                                                                                   |                                                                                        |                                                                                                     |                                                                                                                              |   |
| Guaranteed      minimum withdrawal benefit  liability                    | $168,786            | $(92,939)                    | $             -  | $            30,754   | $                -  | $106,601                                                                                                                     | $        (92,908) |
| Guaranteed      minimum accumulation  benefit      liability             | 81,669         | (41,679) )                        | -                                                                                 | 6,040                                                                             | -                                                                                                   | 46,030                                                                                                                       | (41,642)    |
| Derivatives      embedded in reinsurance  contracts                      | -                             | -                                      | -                                                                                 | -                                                                                 | -                                                                                                   | -                                                                                                                  | -  |
| Fixed      index annuities                                                         | 140,966        | (5,355)                      | -                                                                                 | 3,401                                                                             | -                                                                                                   | 139,012                                                                                                                      | 4,001  |
| Total      other policy liabilities                                                | 391,421             | (139,973)               | -                                                                                 | 40,195                                                                            | -                                                                                                   | 291,643                                                                                                                      | (130,549)   |
|                                                                               |                                         |                                                  |                                                                                   |                                                                                        |                                                                                                     |                                                                                                                              |   |
| Derivative      instruments – payable:                                       |                                         |                                                  |                                                                                   |                                                                                        |                                                                                                     |                                                                                                                              |   |
| Interest      rate contracts                                                       | -                                       | -                                                | -                                                                                 | -                                                                                      | -                                                                                                   | -                                                                                                             | -    |
| Foreign      currency contracts                                                    | -                                       | -                                                | -                                                                                 | -                                                                                      | -                                                                                                   | -                                                                                                             | -    |
| Credit      contracts                                                              | 34,349                   | 263                     | -                                                                                 | -                                                                                      | -                                                                                                   | 34,612                                                                                                        | 263      |
| Futures                                                                            | -                                       | -                                                | -                                                                                 | -                                                                                      | -                                                                                                   | -                                                                                                             | -    |
| Total      derivative instruments –    payable                          | 34,349                                  | 263                                              | -                                                                                 | -                                                                                      | -                                                                                                   | 34,612                                                                                                   | 263 |
|                                                                               |                                         |                                                  |                                                                                   |                                                                                        |                                                                                                     |                                                                                                                              |   |
|                                                                               |                                         |                                                  |                                                                                   |                                                                                        |                                                                                                     |                                                                                                                              |   |
| Other      liabilities:                                                            |                                         |                                                  |                                                                                   |                                                                                        |                                                                                                     |                                                                                                                              |   |
| Bank      overdrafts                                                               | -                                       | -                                                | -                                                                                 | -                                                                                      | -                                                                                                   | -                                                                                                                  | -    |
|                                                                               |                                         |                                                  |                                                                                   |                                                                                        |                                                                                                     |                                                                                                                              |   |
| Total      liabilities measured at fair value on a  recurring      basis | $      425,770                          | $(139,710)                   | $             -  | $           40,195              | $                -  | $      326,255                                                                                                | $         (130,286)       |

|                                                                                                  |   | Total      realized gains(losses)      included inearnings |   | Change      inunrealized      gains(losses)      related toassets      still held  atthe      reporting date |
|-------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------|
| Net      investment (loss) income                                                                     | $      | (8,306)                                                    | $      | 12,004                                                                                                            |
| Net      derivative income                                                                            |   | 141,241                                               |   | 131,817                                                                                                           |
| Net      realized investment losses, excluding impairmentlosses      on available-for-sale securities |   | (260)                                                      |   | -                                                                                                                 |
| Net      gains                                                                                        | $      | 132,675                                               | $      | 143,821                                                                                                           |

----

| Assets                                                            | Beginningbalance                         | Total      realized and unrealizedgains      (losses) | Purchases,issuances,      andsettlements      (net)                                              | Transfers      inand/or      (out)of      level 3 (2)                            | Endingbalance                                | Change      inunrealized      (gains)losses      included inearnings      relatingto      instrumentsstillheld      at thereporting      date |
|-------------------------------------------------------------------|------------------------------------------|-------------------------------------------------------|--------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| Includedin      earnings                                          | Included      inothercomprehensiveincome |
| Available-for-sale      fixed maturitysecurities:                 |                                     |                                                  |                                                                                             |                                                                             |                                         |                                                                                                                                          |   |
| Asset-backed      and mortgage-backed  securities       | $     4,466     | $      (46)             | $             (489)             | $            -  | $      (1,343) | $     2,588                                                                                                          | $               -   |
| Foreign      government & agencysecurities                    | -                                        | -                                                | -                                                                                           | -                                                                           | -                                       | -                                                                                                                                             | -   |
| U.S.      states and politicalsubdivisions      securities        | -                                        | -                                                | -                                                                                           | -                                                                           | -                                       | -                                                                                                                                             | -   |
| U.S.      treasury and agencysecurities                           | -                                        | -                                                | -                                                                                           | -                                                                           | -                                       | -                                                                                                                                             | -   |
| Corporate      securities                                         | 7,888                                    | 123                                              | (131)                                                                                            | (162)                                                                       | (5,969)                                      | 1,749                                                                                                                                         | -   |
| Total      available-for-sale fixed maturitysecurities            | 12,354                                   | 77                                               | (620)                                                                                       | (162)                                                                       | (7,312)                                      | 4,337                                                                                                                                         | -   |
|                                                              |                                     |                                                  |                                                                                             |                                                                             |                                         |                                                                                                                                          |   |
| Trading      fixed maturity securities:                           |                                     |                                                  |                                                                                             |                                                                             |                                         |                                                                                                                                          |   |
| Asset-backed      and mortgage-backed  securities       | 462,253                                  | (49,017)                                              | -                                                                                           | (8,335)                                                                     | (27,408)                                     | 377,493                                                                                                                                       | (1,488)  |
| Foreign      government & agencysecurities                    | 9,200                                    | 250                                              | -                                                                                           | -                                                                           | -                                       | 9,450                                                                                                                                    | 250    |
| U.S.      states and politicalsubdivisions      securities        | -                                        | -                                                | -                                                                                           | -                                                                           | -                                       | -                                                                                                                                        | -   |
| U.S.      treasury and agency securities                          | -                                        | -                                                | -                                                                                           | -                                                                           | -                                       | -                                                                                                                                        | -   |
| Corporate      securities                                         | 134,505                                  | 15,311                                           | -                                                                                           | (3,121)                                                                     | (47,838)                                     | 98,857                                                                                                                                   | 4,234  |
| Total      trading fixed maturity securities                      | 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                                                                                                                                  | 2,668  |
|                                                              |                                     |                                                  |                                                                                             |                                                                             |                                         |                                                                                                                                          |   |
| 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 arecurring      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 thesecurities. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Liabilities                                                                                                | Beginningbalance                         | Total      realized and unrealized(gains)      losses | Purchases,issuances,      andsettlements      (net)                                                      | Transfers      inand/or      (out)of      level 3            | Endingbalance                                                                          | Change      inunrealized      (gains)losses      included inearnings      relating toinstruments      stillheld      at thereporting      date |
|------------------------------------------------------------------------------------------------------------|------------------------------------------|-------------------------------------------------------|----------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|----------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| Includedin      earnings                                                                                   | Included      inothercomprehensiveincome |
|                                                                                                       |                                     |                                                  |                                                                                                     |                                                         |                                                                                   |                                                                                                                                           |   |
| Other      policy liabilities:                                                                             |                                     |                                                  |                                                                                                     |                                                         |                                                                                   |                                                                                                                                           |   |
|   Guaranteed      minimum withdrawal     benefit      liability         | $   335,612               | $   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 reinsurancecontracts                                              | -                                        | -                                                | -                                                                                                        | -                                                            | -                                                                                      | -                                                                                                                                              | - |
|    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) |

|                                                                                                  |   | Total      realizedgains      (losses)included      inearnings |   | Change      inunrealized      gains(losses)      related toassets      still held  atthe      reporting date |
|-------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------|
| Net      investment (loss) income                                                                     | $      | (33,456)                                                       | $      | 2,996                                                                                                                  |
| Net      derivative income                                                                            |   | 18,630                                                    |   | 17,027                                                                                                                 |
| Net      realized investment gains, excluding impairment losses on      available-for-sale securities |   | 77                                                        |   | -                                                                                                                      |
| Net      (losses) gains                                                                               | $      | (14,749)                                                       | $      | 20,023                                                                                                                 |

----

|                                                              | Level      1 Transfers                                                                                                                 | Level      2 Transfers                                                                                                                                   | Level      3 Transfers                                                                                                                             |
|-------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                              | Into                                                                                                                                   | (Out      of)                                                                                                                                            | Into                                                                                                                                               | (Out      of) | Into | (Out      of) |
| Assets                                                            |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                               |   |   |   |
| Available-for-sale      fixed maturity securities:                |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                               |   |   |   |
| Asset-backed      securities                                      | $                     -  | $                      -              | $                       -  | $                            -  | $                  -  | $                  --  |
| Residential      mortgage-backed securities                       | -                                                                                                                                 | -                                                                                                                                                   | -                                                                                                                                             | -  | -  | -  |
| Commercial      mortgage-backed securities                        | -                                                                                                                                 | -                                                                                                                                                   | -                                                                                                                                             | -  | -  | -  |
| Foreign      government & agency securities                   | -                                                                                                                                 | -                                                                                                                                                   | -                                                                                                                                             | -  | -  | -  |
| U.S.      states and political subdivisionssecurities             | -                                                                                                                                 | -                                                                                                                                                   | -                                                                                                                                             | -  | -  | -  |
| U.S.      treasury and agency securities                          | -                                                                                                                                 | -                                                                                                                                                   | -                                                                                                                                             | -  | -  | -  |
| Corporate      securities                                         | -                                                                                                                                 | -                                                                                                                                                   | 7,184                                                                                                                                         | -  | -  | (7,184) |
| Total      available-for-sale fixed maturitysecurities            | -                                                                                                                                 | -                                                                                                                                                   | 7,184                                                                                                                                         | -  | -  | (7,184) |
|                                                              |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                               |   |   |   |
| Trading      fixed maturity securities:                           |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                               |   |   |   |
| Asset-backed      securities                                      | -                                                                                                                                 | -                                                                                                                                                   |        47,432                                                                                              |        (9,275) | 9,275  |  (47,432) |
| Residential      mortgage-backed securities                       | -                                                                                                                                 | -                                                                                                                                                   |        80,597                                                                                                   | (35,068) | 35,068  |  (80,597) |
| Commercial      mortgage-backed securities                        | -                                                                                                                                 | -                                                                                                                                                   |             696                                                                   |   | -  |  (696) |
| Foreign      government & agency securities                   | -                                                                                                                                 | -                                                                                                                                                   | -                                                                                                                                             | -  | -  | -  |
| U.S.      states and political subdivisionssecurities             | -                                                                                                                                 | -                                                                                                                                                   | -                                                                                                                                             | -  | -  | -  |
| U.S.      treasury and agency securities                          | -                                                                                                                                 | -                                                                                                                                                   | -                                                                                                                                             | -  | -  | -  |
| Corporate      securities                                         | -                                                                                                                                 | -                                                                                                                                                   |        17,424                                                                                                   | -  | -  |  (17,424) |
| Total      trading fixed maturity securities                      | -                                                                                                                                 | -                                                                                                                                                   |      146,149                                                                                                              |      (44,343) | 44,343  |  (146,149) |
|                                                              |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                               |   |   |   |
|                                                              |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                               |   |   |   |
| Separate      account assets:                                     |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                               |   |   |   |
| Mutual      fund investments                                      | -                                                                                                                                 | -                                                                                                                                                   | -                                                                                                                                             | -  | -  | -  |
| Equity      investments                                           | 3,764                                                                                                                             | -                                                                                                                                                   | -                                                                                                                                             | (3,764) | -  | -  |
| Fixed      income investments                                     | -                                                                                                                                 | -                                                                                                                                                   | -                                                                                                                                             | -  | -  | -  |
| Alternative      investments                                      | -                                                                                                                                 | -                                                                                                                                                   | 2,969                                                                                                                                         | -  | -  | (2,969) |
| Other      investments                                            | -                                                                                                                                 | -                                                                                                                                                   | -                                                                                                                                             | -  | -  | -  |
| Total      separate account assets                                | 3,764                                                                                                                             | -                                                                                                                                                   | -                                                                                                                                             | -  | -  | -  |
|                                                              |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                               |   |   |   |
| Total      assets measured at fair value on arecurring      basis | $                 3,764                      | $                        -  | $             156,302                                                        | $                   (48,107) | $        44,343  | $          (156,302) |
|                                                              |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                               |   |   |   |

----

| 5.  INVESTMENTS |
|---------------------------|

| Available-for-sale      fixed maturity securities       | AmortizedCost                                                                            | GrossUnrealizedGains                                                                          | GrossUnrealizedTemporaryLosses                                                                  | OTTILosses(1)                                                                                            | FairValue                                                                                |
|---------------------------------------------------------|------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
| Non-corporate      securities:                          |                                                                                     |                                                                                          |                                                                                            |                                                                                                     |                                                                                     |
| Asset-backed      securities                            | $             899  | $              43  | $               (16) | $                -  | $             926  |
| Residential      mortgage-backed securities             | 42,455                                                                              | 2,413                                                                                    | -                                                                                          | -                                                                                                   | 44,868                                                                              |
| Commercial      mortgage-backed securities              | 17,905                                                                              | 406                                                                                      | (2,977)                                                                                         | -                                                                                                   | 15,334                                                                              |
| Foreign      government & agency securities         | 508                                                                                 | 43                                                                                       | -                                                                                          | -                                                                                                   | 551                                                                                 |
| U.S.      states and political subdivisionssecurities   | 219                                                                                 | -                                                                                        | (2)                                                                                             | -                                                                                                   | 217                                                                                 |
| U.S.      treasury and agency securities                | 38,089                                                                              | 1,216                                                                                    | (232)                                                                                           | -                                                                                                   | 39,073                                                                              |
| Total      non-corporate securities                     | 100,075                                                                             | 4,121                                                                                    | (3,227)                                                                                         | -                                                                                                   | 100,969                                                                             |
|                                                    |                                                                                     |                                                                                          |                                                                                            |                                                                                                     |                                                                                     |
| Corporate      securities                               | 1,002,606                                                                           | 87,533                                                                                   | (11,558)                                                                                        | (13,588)                                                                                                 | 1,064,993                                                                           |
|                                                    |                                                                                     |                                                                                          |                                                                                            |                                                                                                     |                                                                                     |
| Total      available-for-sale fixed maturity securities | $   1,102,681                                                        | $       91,654                                        | $        (14,785)                                       | $      (13,588)                                                            | $   1,165,962                                                        |
|                                                    |                                                                                     |                                                                                          |                                                                                            |                                                                                                     |                                                                                     |
|                                                    |                                                                                     |                                                                                          |                                                                                            |                                                                                                     |                                                                                     |
| Trading      fixed maturity securities                  | AmortizedCost                                                                            | GrossUnrealizedGains                                                                          | GrossUnrealizedLosses                                                                           | FairValue                                                                                                |                                                                                     |
| Non-corporate      securities:                          |                                                                                     |                                                                                          |                                                                                            |                                                                                                     |                                                                                     |
| Asset-backed      securities                            | $      571,550                                        | $         7,622                             | $      (179,068)                                                  | $     400,104                                                              |                                                                                     |
| Residential      mortgage-backed securities             | 1,439,157                                                                           | 15,142                                                                                   | (393,145)                                                                                       | 1,061,154                                                                                           |                                                                                     |
| Commercial      mortgage-backed securities              | 944,843                                                                             | 26,092                                                                                   | (300,335)                                                                                       | 670,600                                                                                             |                                                                                     |
| Foreign      government & agency securities         | 75,515                                                                              | 7,439                                                                                    | -                                                                                          | 82,954                                                                                              |                                                                                     |
| U.S.      states and political subdivisionssecurities   | 607                                                                                 | 10                                                                                       | -                                                                                          | 617                                                                                                 |                                                                                     |
| U.S.      treasury and agency securities                | 1,078,381                                                                           | 15,839                                                                                   | (1,174)                                                                                         | 1,093,046                                                                                           |                                                                                     |
| Total      non-corporate securities                     | 4,110,053                                                                           | 72,144                                                                                   | (873,722)                                                                                       | 3,308,475                                                                                           |                                                                                     |
|                                                    |                                                                                     |                                                                                          |                                                                                            |                                                                                                     |                                                                                     |
| Corporate      securities                               | 8,488,395                                                                           | 347,010                                                                                  | (187,289)                                                                                       | 8,648,116                                                                                           |                                                                                     |
|                                                    |                                                                                     |                                                                                          |                                                                                            |                                                                                                     |                                                                                     |
| Total      trading fixed maturity securities            | $      12,598,448                                                                   | $     419,154                                                   | $   (1,061,011)                                                                  | $      11,956,591                                                                                   |                                                                                     |

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

----

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

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

----

|                                                                                                                                | Amortized      Cost                                          | Fair      Value                                                                                                    |
|-------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|
| Maturities      of available-for-sale fixed securities:                                                                             |                                                         |                                                                                                               |
|                                                                                                                                | Due      in one year or less                                 | $                 5,472  | $                5,511  |
|                                                                                                                                | Due      after one year through five years                   | 361,355                                                                                                       | 421,588  |
|                                                                                                                                | Due      after five years through ten years                  | 105,208                                                                                                       | 119,323  |
|                                                                                                                                | Due      after ten years                                     |                                                                                                               |   | 569,387  | 558,412  |
|           Subtotal      – Maturities of available-for-sale fixed securities |                                                         | 1,041,422                                                                                                     | 1,104,834  |
| ABS,      RMBS and CMBS securities(1)                                                                                               |                                                         | 61,259                                                                                                        | 61,128  |
|           Total      available-for-sale fixed securities                          |                                                         | $          1,102,681                                        | $         1,165,962  |
|                                                                                                                                |                                                         |                                                                                                               |   |
| Maturities      of trading fixed securities:                                                                                        |                                                         |                                                                                                               |
|                                                                                                                                | Due      in one year or less                                 | $             639,772                        | $            652,434  |
|                                                                                                                                | Due      after one year through five years                   | 5,137,661                                                                                                     | 5,295,782 |
|                                                                                                                                | Due      after five years through ten years                  | 2,417,190                                                                                                     | 2,495,350  |
|                                                                                                                                | Due      after ten years                                     | 1,448,275                                                                                                     | 1,381,167  |
|                                                                                                                                | Subtotal      – Maturities of trading fixed securities | 9,642,898                                                                                                     | 9,824,733  |
| ABS,      RMBS and CMBS securities(1)                                                                                               | 2,955,550                                               | 2,131,858                                                                                                     |
|                                                                                                                                | Total      trading fixed securities                          | $        12,598,448                                                        | $       11,956,591  |

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

----

|                                            |  Less      Than Twelve Months            |  Twelve      Months Or More                      |  Total                                                    |
|-------------------------------------------------|-----------------------------------------------|-------------------------------------------------------|----------------------------------------------------------------|
|                                            |                                          |                                                  |                                                           |   |   |   |
|                                            | FairValue                                     | GrossUnrealizedLosses                                 | FairValue                                                      | GrossUnrealizedLosses | FairValue | GrossUnrealizedLosses |
|                                            |                                          |                                                  |                                                           |   |   |   |
| Non-corporate      securities:                  |                                          |                                                  |                                                           |   |   |   |
| Asset-backed      securities                    | $       29 | $        (16) | $         -  | $             -  | $       29  | $       (16) |
| Residential      mortgage-backed securities     | -                                        | -                                                | -                                                         | -  | -  | -  |
| Commercial      mortgage-backed securities      | 3,969                                         | (2,977)                                               | -                                                         | -  | 3,969 | (2,977) |
| Foreign      government & agency securities | -                                        | -                                                | -                                                         | -  | -  | -  |
| U.S.      states and political subdivisions     | 217                                      | (2)                                                   | -                                                         | -  | 217  | (2) |
| U.S.      treasury and agency securities        | -                                        | -                                                | 16,800                                                    | (232) | 16,800  | (232) |
| Total      non-corporate securities             | 4,215                                         | (2,995)                                               | 16,800                                                    | (232) | 21,015  | (3,227) |
|                                            |                                          |                                                  |                                                           |   |   |   |
| Corporate      securities                       | 179,794                                  | (22,838)                                              | 105,648                                                   | (2,308) | 285,442  | (25,146) |
|                                            |                                          |                                                  |                                                           |   |   |   |
|  Total                                     | $184,009                                 | $(25,833)                                             | $122,448                                                  | $    (2,540) | $306,457  | $     (28,373) |

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

----

----

----

|                                                                                                       |   | Three-month      Period EndedMarch      31, 2010(in      000’s)                                                                                                                                                                                         |
|------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                       |   |                                                                                                                                                                                                                                                          |
| Beginning      balance, at January 1, 2010                                                                 |   | $          9,148                                                                                                                                                                                       |
| Add:      Credit losses remaining in accumulated deficit relatedto      the adoption of FASB ASC Topic 320 |   | -                                                                                                                                                                                                                                                        |
| Add:      Credit losses on OTTI not previously recognized                                                  |   |             885                                                                                                                                                                              |
| Less:      Credit losses on securities sold                                                                |   |                    (968)                                                                                                                                       |
| Less:      Credit losses on securities impaired due to intent to sell                                      |   | -                                                                                                                                                                                                                                                        |
| Add:      Credit losses on previously impaired securities                                                  |   | -                                                                                                                                                                                                                                                        |
| Less:      Increases in cash flows expected on previouslyimpaired      securities                          |   |                                          (1,089) |
| Ending      balance, at March 31, 2010                                                                     |   | $          7,976                                                                                                                                                                                       |

----

----

----

|                      | At      March 31, 2010                       | At      December 31, 2009                             |
|---------------------------|----------------------------------------------|-------------------------------------------------------|
|                      |      Number      of |    Principal   Notional |    Number      of |                  Principal                  Notional |
|                      |                                         | Contracts                                             |   | Contracts |   | Contracts |   | Contracts |
|                      |                                         |                                                  |   |   |   |   |   |   |
| Interest      rate swaps  |                                         | 88                                               |   | $       8,584,000 |   | 102  |   |  $      8,883,000  |
| Currency      swaps       |                                         | 11                                               |   | 352,591 |   | 10  |   | 351,740  |
| Credit      default swaps |                                         | 1                                                |   | 55,000 |   | 1  |   |         55,000  |
| Equity      swaps         |                                         | 2                                                |   | 4,908 |   | 2  |   | 4,908  |
| Swaptions                 |                                         | 3                                                |   | 850,000 |   | 5  |   | 1,150,000 |
| Futures      (1)          |                                         | (17,578)                                              |   | 2,494,972 |   | (13,811) |   | 2,378,216  |
| Index      call options   |                                         | 8,515                                            |   | 1,520,255 |   | 7,345  |   | 1,313,381  |
| Index      put options    |                                         | 4,100                                            |   | 383,057 |   | 7,100  |   | 682,499  |
| Total                     |                                         |                                                  |   | $      14,244,783 |   |   |   | $    14,818,744  |

----

|                            | At      March 31, 2010 | At      December 31, 2009                                      |
|---------------------------------|------------------------|----------------------------------------------------------------|
|                            | Asset      Derivatives |         Liability         Derivatives | Asset      Derivatives |                 Liability                    Derivatives |
|                            |                   | Fair      Value (a)                                            |   | Fair      Value (a) |   | Fair      Value (a) |   | Fair      Value (a) |
|                            |                   |                                                           |   |   |   |   |   |   |
| Interest      rate contracts    |                   | $   136,611                                     |   | $   511,140 |   | $   130,178  |   | $   532,401 |
| Foreign      currency contracts |                   | 34,462                                                         |   | 2,505 |   | 56,032  |   | 905 |
| Equity      contracts           |                   | 55,701                                                         |   | - |   | 58,692  |   | - |
| Credit      contracts           |                   | -                                                              |   | 34,612 |   | - |   | 34,349 |
| Futures      (b)                |                   | 8,724                                                          |   | 1,166 |   | 14,325 |   | 5,255 |
| Derivative      instruments     |                   | 235,498                                                        |   | 549,423 |   | 259,227 |   | 572,910 |
| Embedded      derivatives (c)   |                   | 209                                                            |   | 321,432 |   | 11,308 |   | 417,764 |
| Total                           |                   | $    235,707                               |   | $   870,855 |   | $   270,535 |   | $   990,674 |

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

|                                                         |   | 2010                                                                                                                       |   | 2009                                                                      |
|--------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|
|                                                         |   |                                                                                                                       |   |                                                                      |
| Interest      rate contracts                                 |   | $        (42,444)                                                                  |   | $          67,966  |
| Foreign      currency contracts                              |   | (3,459)                                                                                                                    |   | 4,662                                                                |
| Equity      contracts                                        |   | (5,229)                                                                                                                    |   | 7,706                                                                |
| Credit      contracts                                        |   | (263)                                                                                                                      |   | 2,923                                                                |
| Futures                                                      |   | (71,775)                                                                                                                   |   | 38,250                                                               |
| Embedded      derivatives                                    |   | 81,720                                                                                                                |   | 8,339                                                                |
| Net      derivative (loss) income from continuing operations |   | $        (41,450)                                                                  |   | $        129,846             |
| Net      derivative income fromdiscontinued      operations  |   | $                   -  |   | $          13,453  |

----

----

|                        |                                                               |                                      | March      31, 2010                                                                                                                                 |            | December      31, 2009                                            |
|-----------------------------|--------------------------------------------------------------------|-------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|-------------------------------------------------------------------|
|                        |                                                               |                                      | Carrying                                                                                                                                            | Estimated       |                                                              | Carrying | Estimated |
|                        |                                                               |                                      | Amount                                                                                                                                              | Fair      Value |                                                              | Amount | Fair      Value |
| Financial      assets:      |                                                               |                                      |                                                                                                                                                |            |                                                              |
|                        | Fixed      maturity securities                                     |  $   13,122,553  |  $   13,122,553                                                                                   |            | $        12,306,038  | $        12,306,038  |
|                        | Mortgage      loans                                                | 1,899,847                            |         1,944,419                                                             |            | 1,911,961                                                    | 1,937,199  |
|                        | Derivative      instruments -receivable                            | 235,498                              |            235,498                                             |            | 259,227                                                      | 259,277  |
|                        | Policy      loans                                                  | 710,292                              |            830,324                                             |            | 722,590                                                      | 837,029  |
|                        | Other      invested assets                                         | 871                                  |                   871       |            | 20,448                                                       | 20,448  |
|                        | Short-term      investments                                        | 2,051,747                            |         2,051,747                                                             |            | 1,267,311                                                    | 1,267,311  |
|                        | Cash      and cash equivalents                                     | 733,097                              |            733,097                                             |            | 1,804,208                                                    | 1,804,208  |
|                        | Separate      account assets                                       | 24,269,106                           |       24,269,106                                                                        |            | 23,326,323                                                   | 23,326,323  |
|                        |                                                               |                                      |                                                                                                                                                |            |                                                              |   |
| Financial      liabilities: |                                                               |                                      |                                                                                                                                                |            |                                                              |
|                        | Contractholder      deposit funds and otherpolicy      liabilities |  13,819,157                     | 13,611,998                                                                                                                                     |            | 14,104,892                                                   | 13,745,774  |
|                        | Debt      payable to affiliates                                    | 883,000                              | 883,000                                                                                                                                        |            | 883,000                                                      | 883,000  |
|                        | Derivative      instruments - payable                              | 549,423                              | 549,423                                                                                                                                        |            | 572,910                                                      | 572,910  |
|                        | Other      liabilities                                             | 42,251                               | 42,251                                                                                                                                         |            | 60,037                                                       | 60,037  |
|                        | Separate      account liabilities                                  | 24,269,106                           | 24,269,106                                                                                                                                     |            | 23,326,323                                                   | 23,326,323  |

----

----

----

|                                                                      | March      31, |      | December      31, |
|---------------------------------------------------------------------------|----------------|-----------|-------------------|
|                                                                      | 2010           |      | 2009              |
| AssetsReinsurance      receivable                                         |  $        | 1,497,205 |              |  $ |  1,540,697 |
|                                                                      |           |      |              |   |   |
| LiabilitiesContractholder      deposit funds and other policy liabilities |           | 1,488,154 |              |   | 1,493,145 |
| Future      contract and policy benefits                                  |           | 2,104     |              |   | 2,104 |
| Reinsurance      payable                                                  |           | 1,572,374 |              |   | 1,603,711 |

----

|                                                                      | March      31, |    | December      31, |
|---------------------------------------------------------------------------|----------------|---------|-------------------|
|                                                                      | 2010           |    | 2009              |
| AssetsReinsurance      receivable                                         |  $        | 436,504 |              | $ | 422,486 |
|                                                                      |           |    |              |   |   |
| LiabilitiesContractholder      deposit funds and other policy liabilities |           | 475,938 |              |   | 466,899 |
| Reinsurance      payable                                                  |           | 438,298 |              |   | 430,528 |
|                                                                      |           |    |              |   |   |

----

|                                                                      | March      31, |          | December      31, |
|---------------------------------------------------------------------------|----------------|---------------|-------------------|
|                                                                      | 2010           |          | 2009              |
| AssetsReinsurance      receivable                                         |  $        | 117,224  |              |  $ |  103,802  |
|                                                                      |           |          |              |   |   |
| LiabilitiesContractholder      deposit funds and other policy liabilities |           | 96,111   |              |   |   84,606  |
| Future      contract and policy benefits                                  |           | 10,870   |              |   | 10,518  |
| Reinsurance      payable                                                  |           | 194,049  |              |   | 182,000  |

----

----

----

| Benefit      Type                      | Account      Balance                                                                                     | Net      Amountat      Risk 1                                                                           | AverageAttained      Age                                                                                               |
|----------------------------------------|----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|
| Minimum      death                     | $           17,830,243                            | $           2,197,992                            | 66.9                                                                                                                   |
| Minimum      income                    | $                195,707 | $                74,466 |                    61.6 |
| Minimum      accumulation orwithdrawal | $             9,769,021                 | $              149,539            | 63.8                                                                                                                   |

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

|                                               | GuaranteedMinimumDeath      Benefit                                                         |   | GuaranteedMinimumIncome      Benefit                                                                            |   | Total                                                                                                       |
|----------------------------------------------------|---------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|
| Balance      at December 31, 2009                  | $             96,267  |   | $           10,058                                  |   | $      106,325                                                           |
|                                               |                                                                                        |   |                                                                                                            |   |                                                                                                        |
| Benefit      ratio change /Assumption      changes |  (7,222)                                                                               |   | (400)                                                                                                           |   | (7,622)                                                                                                     |
| Incurred      guaranteed benefits                  | 2,086                                                                                  |   | 360                                                                                                        |   |                2,446        |
| Paid      guaranteed benefits                      |  (7,134)                                                                               |   |  (1,296)                                                                                                   |   |               (8,430)                 |
| Interest                                           | 6,768                                                                                  |   |                  178  |   |                 6,946  |
|                                               |                                                                                        |   |                                                                                                            |   |                                                                                                        |
| Balance      at March 31, 2010                     | $             90,765  |   | $             8,900                       |   | $           99,665                                   |

----

|                                               | 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              |

----

----

|                                                                                                                                            | SLUSas      Parent |          |  SLNY |   | OtherSubs    |   |  Elimination |        | ConsolidatedCompany |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|---------------|------------|--------|--------------|--------|-------------------|-------------|---------------------|
|                                                                                                                                            |               |          |       |   |         |   |              |        |                |   |   |   |   |   |
| Revenues                                                                                                                                        |               |          |       |   |         |   |              |        |                |   |   |   |   |   |
|                                                                                                                                            |               |          |       |   |         |   |              |        |                |   |   |   |   |   |
| Premiums      and annuity considerations                                                                                                        | $                  | 5,091    |       | $      | 29,973  |   | $                 | -      |                | $ | -  |   | $ | 35,064  |
| Net      investment income (1)                                                                                                                  |               | 404,410  |       |   | 38,299  |   |              | 1,120  |                |   | -  |   |   | 443,829  |
| Net      derivative (loss) income                                                                                                               |               | (47,949)      |       |   | 6,499   |   |              | -      |                |   | -  |   |   | (41,450) |
|          Net realized investment gains, excluding    impairment      losses on available-for-sale securities |               | 4,370    |       |   | 396     |   |              | 399    |                |   | -  |   |   | 5,165  |
|          Other-than-temporary impairment losses                                                                                  |               | (735)         |       |   | (150)        |   |              | -      |                |   | -  |   |   | (885) |
| Fee      and other income                                                                                                                       |               | 108,717  |       |   | 5,007   |   |              | 2,029  |                |   | -  |   |   | 115,753  |
|                                                                                                                                            |               |          |       |   |         |   |              |        |                |   |   |   |   |   |
| Total      revenues                                                                                                                             |               | 473,904  |       |   | 80,024  |   |              | 3,548  |                |   | -  |   |   | 557,476 |
|                                                                                                                                            |               |          |       |   |         |   |              |        |                |   |   |   |   |   |
| Benefits      and Expenses                                                                                                                      |               |          |       |   |         |   |              |        |                |   |   |   |   |   |
|                                                                                                                                            |               |          |       |   |         |   |              |        |                |   |   |   |   |   |
| Interest      credited                                                                                                                          |               | 76,656   |       |   | 12,533  |   |              | 194    |                |   | -  |   |   | 89,383  |
| Interest      expense                                                                                                                           |               | 17,112   |       |   | (15)         |   |              | -      |                |   | -  |   |   | 17,097  |
| Policyowner      benefits                                                                                                                       |               | 10,586   |       |   | 23,984  |   |              | 33     |                |   | -  |   |   | 34,603  |
|          Amortization of DAC, VOBA and VOCRA                                                                                     |               | 135,321  |       |   | 36,388  |   |              | -      |                |   | -  |   |   | 171,709  |
| Other      operating expenses                                                                                                                   |               | 69,986   |       |   | 8,982   |   |              | 1,942  |                |   | -  |   |   | 80,910  |
|                                                                                                                                            |               |          |       |   |         |   |              |        |                |   |   |   |   |   |
| Total      benefits and expenses                                                                                                                |               | 309,661  |       |   | 81,872  |   |              | 2,169  |                |   | -  |   |   | 393,702  |
|                                                                                                                                            |               |          |       |   |         |   |              |        |                |   |   |   |   |   |
| Income      (loss) before income tax expense (benefit)                                                                                          |               | 164,243  |       |   | (1,848)      |   |              | 1,379  |                |   | -  |   |   | 163,774  |
|                                                                                                                                            |               |          |       |   |         |   |              |        |                |   |   |   |   |   |
| Income      tax expense (benefit)                                                                                                               |               | 52,485   |       |   | (783)        |   |              | 421    |                |   | -  |   |   | 52,123  |
| Equity      in the net loss of subsidiaries                                                                                                     |               | (107)         |       |   | -       |   |              | -      |                |   | 107  |   |   | -  |
|                                                                                                                                            |               |          |       |   |         |   |              |        |                |   |   |   |   |   |
| Net      income (loss)                                                                                                                          | $                  | 111,651  |       | $      | (1,065)      |   | $                 | 958    |                | $ | 107  |   | $ | 111,651  |

|   |  (1)SLUS’, SLNY’s and Other Subs’ net      investment income includes an increase in market value of trading fixed      maturity securities of $253.3 million, $17.1 million and $0.0 million,      respectively, for the three-month period ended March 31,      2010. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                    | SLUSas      Parent |                |  SLNY |   | OtherSubs          |   |  Elimination |            | ConsolidatedCompany |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|---------------------|------------|--------|--------------------|--------|-------------------|-----------------|---------------------|
|                                                                                                                                                    |               |                |       |   |               |   |              |            |                |   |   |   |   |   |
| Revenues                                                                                                                                                |               |                |       |   |               |   |              |            |                |   |   |   |   |   |
|                                                                                                                                                    |               |                |       |   |               |   |              |            |                |   |   |   |   |   |
| Premiums      and annuity considerations                                                                                                                | $                  | 1,513          |       | $      | 31,027        |   | $                 | -          |                | $ | -  |   | $ | 32,540  |
| Net      investment income (1)                                                                                                                          |               | 125,567        |       |   | 16,796        |   |              | 1,294      |                |   | -  |   |   | 143,657  |
| Net      derivative income                                                                                                                              |               | 129,250        |       |   | 596           |   |              | -          |                |   | -  |   |   | 129,846  |
| Net      realized investment (losses) gains, excluding         impairment losses on available-for-sale         securities |               | (1,946)             |       |   | (1)                |   |              | 50         |                |   | -  |   |   | (1,897) |
|          Other-than-temporary impairment losses                                                                                          |               | -              |       |   | -             |   |              | -          |                |   | -  |   |   | -  |
| Fee      and other income                                                                                                                               |               | 76,114         |       |   | (987)              |   |              | 1,074      |                |   | -  |   |   | 76,201  |
|                                                                                                                                                    |               |                |       |   |               |   |              |            |                |   |   |   |   |   |
| Total      revenues                                                                                                                                     |               | 330,498        |       |   | 47,431        |   |              | 2,418      |                |   | -  |   |   | 380,347  |
|                                                                                                                                                    |               |                |       |   |               |   |              |            |                |   |   |   |   |   |
| Benefits      and Expenses                                                                                                                              |               |                |       |   |               |   |              |            |                |   |   |   |   |   |
|                                                                                                                                                    |               |                |       |   |               |   |              |            |                |   |   |   |   |   |
| Interest      credited                                                                                                                                  |               | 100,107        |       |   | 12,212        |   |              | 465        |                |   | -  |   |   | 112,784  |
| Interest      expense                                                                                                                                   |               | 11,278         |       |   | 802           |   |              | -          |                |   | -  |   |   | 12,080  |
| Policyowner      benefits                                                                                                                               |               | 82,554         |       |   | 19,088        |   |              | 345        |                |   | -  |   |   | 101,987  |
|          Amortization of DAC, VOBA and VOCRA                                                                                             |               | (96,718)            |       |   | (10,706)           |   |              | -          |                |   | -  |   |   | (107,424) |
| Other      operating expenses                                                                                                                           |               | 36,358         |       |   | 9,802         |   |              | 781        |                |   | -  |   |   | 46,941  |
|                                                                                                                                                    |               |                |       |   |               |   |              |            |                |   |   |   |   |   |
| Total      benefits and expenses                                                                                                                        |               | 133,579        |       |   | 31,198        |   |              | 1,591      |                |   | -  |   |   | 166,368  |
|                                                                                                                                                    |               |                |       |   |               |   |              |            |                |   |   |   |   |   |
| Income      from continuing operations before incometax      expense                                                                                    |               |  196,919  |       |   |  16,233  |   |              |  827  |                |   |  -  |   |   |  213,979  |
|                                                                                                                                                    |               |                |       |   |               |   |              |            |                |   |   |   |   |   |
| Income      tax expense                                                                                                                                 |               | 68,394         |       |   | 3,958         |   |              | 351        |                |   | -  |   |   | 72,703  |
| Equity      in the net loss of subsidiaries                                                                                                             |               | (78,911)            |       |   | -             |   |              | -          |                |   | 78,911  |   |   | -  |
|                                                                                                                                                    |               |                |       |   |               |   |              |            |                |   |   |   |   |   |
| Net      income from continuing operations                                                                                                              |               | 49,614         |       |   | 12,275        |   |              | 476        |                |   | 78,911  |   |   | 141,276  |
|                                                                                                                                                    |               |                |       |   |               |   |              |            |                |   |   |   |   |   |
| Loss      from discontinued operations, net of tax                                                                                                      |               | -              |       |   | -             |   |              | (91,662)        |                |   | -  |   |   | (91,662) |
|                                                                                                                                                    |               |                |       |   |               |   |              |            |                |   |   |   |   |   |
| Net      income (loss)                                                                                                                                  | $                  | 49,614         |       | $      | 12,275        |   | $                 | (91,186)        |                | $ | 78,911  |   | $ | 49,614  |

|   | (1)SLUS’,      SLNY’s and Other Subs’ net investment income includes a decrease in market      value of trading fixed maturity securities of $28.7 million, $1.2 million      and $0.0 million, respectively, for the three-month period ended March 31,      2009. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                            | SLUSas      Parent |             |  SLNY |   | OtherSubs       |   |  Elimination |          | ConsolidatedCompany |
|-----------------------------------------------------------------|--------------------|------------------|------------|--------|-----------------|--------|-------------------|---------------|---------------------|
| ASSETS                                                          |               |             |       |   |            |   |              |          |                |   |   |   |   |   |
|                                                            |               |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Investments                                                     |               |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Available-for-sale      fixed maturity securities at fair value | $                  | 915,326     |       | $      | 199,732    |   | $                 | 50,904   |                | $ | -  |   | $ | 1,165,962  |
| Trading      fixed maturity securities at fair value            |               | 10,483,115  |       |   | 1,473,476  |   |              | -        |                |   | -  |   |   | 11,956,591  |
| Investment      in subsidiaries                                 |               | 534,900     |       |   | -          |   |              | -        |                |   | (534,900) |   |   | -  |
| Mortgage      loans                                             |               | 1,695,133   |       |   | 176,944    |   |              | 27,770   |                |   |   |   |   | 1,899,847  |
| Derivative      instruments – receivable                  |               | 235,498     |       |   | -          |   |              | -        |                |   | -  |   |   | 235,498  |
| Limited      partnerships                                       |               | 45,886      |       |   | -          |   |              | -        |                |   | -  |   |   | 45,886  |
| Real      estate                                                |               | 159,048     |       |   | -          |   |              | 45,288   |                |   | -  |   |   | 204,336  |
| Policy      loans                                               |               | 688,247     |       |   | 925        |   |              | 21,120   |                |   | - |   |   | 710,292  |
| Other      invested assets                                      |               | 26,335      |       |   | 71         |   |              | -        |                |   | -  |   |   | 26,406  |
| Short-term      investments                                     |               | 1,959,755   |       |   | 89,992     |   |              | 2,000    |                |   | -  |   |   | 2,051,747  |
| Cash      and cash equivalents                                  |               | 645,213     |       |   | 75,844     |   |              | 12,040   |                |   | -  |   |   | 733,097  |
| Total      investments and cash                                 |               | 17,388,456  |       |   | 2,016,984  |   |              | 159,122  |                |   | (534,900) |   |   | 19,029,662  |
|                                                            |               |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Accrued      investment income                                  |               | 197,646     |       |   | 18,736     |   |              | 1,664    |                |   | -  |   |   | 218,046  |
| Deferred      policy acquisition costs                          |               | 1,909,023   |       |   | 156,539    |   |              | -        |                |   | -  |   |   | 2,065,562  |
| Value      of business and customer renewals acquired           |               | 165,131     |       |   | 5,469      |   |              | -        |                |   | -  |   |   | 170,600  |
| Net      deferred tax asset                                     |               | 481,794     |       |   | 5,982      |   |              | 4,286    |                |   | -  |   |   | 492,062  |
| Goodwill                                                        |               | -           |       |   | 7,299      |   |              | -        |                |   | -  |   |   | 7,299  |
| Receivable      for investments sold                            |               | 14,001      |       |   | 12         |   |              | 23       |                |   | -  |   |   | 14,036  |
| Reinsurance      receivable                                     |               | 2,216,985   |       |   | 143,760    |   |              | 38       |                |   | -  |   |   | 2,360,783  |
| Other      assets                                               |               | 99,876      |       |   | 44,816     |   |              | 800      |                |   | -  |   |   | 145,492  |
| Separate      account assets                                    |               | 23,155,439  |       |   | 1,072,781  |   |              | 40,886   |                |   | -  |   |   | 24,269,106  |
|                                                            |               |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Total      assets                                               | $                  | 45,628,351  |       | $      | 3,472,378  |   | $                 | 206,819  |                | $ | (534,900) |   | $ | 48,772,648 |
|                                                            |               |             |       |   |            |   |              |          |                |   |   |   |   |   |
| LIABILITIES                                                     |               |             |       |   |            |   |              |          |                |   |   |   |   |   |
|                                                            |               |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Contractholder      deposit funds and other policy liabilities  | $                  | 14,833,319  |       | $      | 1,601,666  |   | $                 | 24,763   |                | $ | -  |   | $ | 16,459,748  |
| Future      contract and policy benefits                        |               | 695,875     |       |   | 99,017     |   |              | 207      |                |   | -  |   |   | 795,099  |
| Payable      for investments purchased                          |               | 87,744      |       |   | 5,030      |   |              | -        |                |   | -  |   |   | 92,774  |
| Accrued      expenses                                           |               | 48,724      |       |   | 10,850     |   |              | 263      |                |   | -  |   |   | 59,837  |
| Debt      payable to affiliates                                 |               | 883,000     |       |   | -          |   |              | -             |                |   | -  |   |   | 883,000  |
| Reinsurance      payable                                        |               | 2,017,680   |       |   | 217,551    |   |              | 36       |                |   | -  |   |   | 2,235,267  |
| Derivative      instruments – payable                     |               | 549,423     |       |   | -          |   |              | -        |                |   | -  |   |   | 549,423  |
| Other      liabilities                                          |               | 232,987     |       |   | 45,737     |   |              | 25,510   |                |   | -  |   |   | 304,234  |
| Separate      account liabilities                               |               | 23,155,439  |       |   | 1,072,781  |   |              | 40,886        |                |   | -  |   |   | 24,269,106  |
|                                                            |               |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Total      liabilities                                          | $                  | 42,504,191  |       | $      | 3,052,632  |   | $                 | 91,665   |                | $ | -  |   | $       ,488 | 45,648,488  |
|                                                            |               |             |       |   |            |   |              |          |                |   |   |   |   |   |
| STOCKHOLDER’S      EQUITY                                 |               |             |       |   |            |   |              |          |                |   |   |   |   |   |
|                                                            |               |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Common      stock                                               | $                  | 6,437       |       | $      | 2,100      |   | $                 | 2,542         |                | $ | (4,642) |   | $ | 6,437  |
| Additional      paid-in capital                                 |               | 3,927,845   |       |   | 389,963    |   |              | 93,507   |                |   |  (483,470) |   |   | 3,927,845  |
| Accumulated      other comprehensive income (loss)              |               | 41,133      |       |   | (1,968)         |   |              | 976      |                |   | 992  |   |   | 41,133  |
| (Accumulated      deficit) retained earnings                    |               |  (851,255)  |       |   | 29,651     |   |              | 18,129   |                |   |  (47,780) |   |   |  (851,255) |
|                                                            |               |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Total      stockholder’s equity                           |               | 3,124,160   |       |   | 419,746    |   |              | 115,154  |                |   | (534,900) |   |   | 3,124,160  |
|                                                            |               |             |       |   |            |   |              |          |                |   |   |   |   |   |
| Total      liabilities and stockholder’s equity           | $                  | 45,628,351  |       | $      | 3,472,378  |   | $                 | 206,819  |                | $ |  (534,900) |   | $ | 48,772,648  |

----

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

----

|                                                                                              | SLUSas      Parent |              |  SLNY |   | OtherSubs     |   |  Elimination |          | ConsolidatedCompany |
|---------------------------------------------------------------------------------------------------|--------------------|-------------------|------------|--------|---------------|--------|-------------------|---------------|---------------------|
|                                                                                              |               |              |       |   |          |   |              |          |                |   |   |   |   |   |
| Cash      Flows From Operating Activities:                                                        |               |              |       |   |          |   |              |          |                |   |   |   |   |   |
| Net      income (loss)                                                                            | $                  | 111,651      |       | $      | (1,065)       |   | $                 | 958      |                | $ | 107  |   | $ | 111,651  |
| Adjustments      to reconcile net income (loss) to netcash      provided by operating activities: |               |              |       |   |          |   |              |          |                |   |   |   |   |   |
| Net      amortization of premiums on investments                                                  |               | 1,873        |       |   | 552      |   |              | 162      |                |   | -  |   |   | 2,587  |
| Amortization      of DAC, VOBA and VOCRA                                                          |               | 135,321      |       |   | 36,388   |   |              | -        |                |   | -  |   |   | 171,709  |
| Depreciation      and amortization                                                                |               | 925          |       |   | 78       |   |              | 211      |                |   | -  |   |   | 1,214  |
| Net      losses (gains) on derivatives                                                            |               | 12,620       |       |   | (6,499)       |   |              | -        |                |   | -  |   |   | 6,121  |
| Net      realized gains and OTTI credit losses on available-for-sale      investments             |               |  (3,635)     |       |   |  (246)   |   |              |  (399)   |                |   |  -  |   |   |  (4,280) |
| Net      increase in fair value of trading investments                                            |               | (253,291)         |       |   | (17,144)      |   |              | -        |                |   | -  |   |   | (270,435) |
| Net      realized losses (gains) on trading investments                                           |               | 37,752       |       |   | (3,825)       |   |              | -        |                |   | -  |   |   | 33,927  |
| Undistributed      loss in private equity limitedpartnerships                                     |               |  1,631  |       |   |  -  |   |              |  -  |                |   |  -  |   |   |  1,631  |
| Interest      credited to contractholder deposits                                                 |               | 76,656       |       |   | 12,533   |   |              | 194      |                |   | -  |   |   | 89,383  |
| Equity      in net loss of subsidiaries                                                           |               | 107          |       |   | -        |   |              | -        |                |   | (107) |   |   | -  |
| Deferred      federal income taxes                                                                |               | 55,083       |       |   | (729)         |   |              | 177      |                |   | -  |   |   | 54,531  |
| Changes      in assets and liabilities:                                                           |               |              |       |   |          |   |              |          |                |   |   |   |   |   |
| Additions      to DAC, VOBA and VOCRA                                                             |               | (49,149)          |       |   | (6,990)       |   |              | -        |                |   | -  |   |   | (56,139) |
| Accrued      investment income                                                                    |               | 14,079       |       |   | (1,685)       |   |              | 151      |                |   | -  |   |   | 12,545  |
| Net      change in reinsurance receivable/payable                                                 |               | 27,338       |       |   | 1,473    |   |              | 57       |                |   | -  |   |   | 28,868  |
| Future      contract and policy benefits                                                          |               | (20,301)          |       |   | (238)         |   |              | -        |                |   | -  |   |   | (20,539) |
| Other,      net                                                                                   |               | 55,946       |       |   | 25,560   |   |              | (278)         |                |   | -  |   |   | 81,228  |
|                                                                                              |               |              |       |   |          |   |              |          |                |   |   |   |   |   |
| Net      cash provided by operating activities                                                    |               | 204,606      |       |   | 38,163   |   |              | 1,233    |                |   | -  |   |   | 244,002  |
|                                                                                              |               |              |       |   |          |   |              |          |                |   |   |   |   |   |
| Cash      Flows From Investing Activities:                                                        |               |              |       |   |          |   |              |          |                |   |   |   |   |   |
| Sales,      maturities and repayments of:                                                         |               |              |       |   |          |   |              |          |                |   |   |   |   |   |
| Available-for-sale      fixed maturity securities                                                 |               | 59,278       |       |   | 8,902    |   |              | 2,312    |                |   | -  |   |   | 70,492  |
| Trading      fixed maturity securities                                                            |               | 561,184      |       |   | 176,441  |   |              | -        |                |   | -  |   |   | 737,625  |
| Mortgage      loans                                                                               |               | 37,645       |       |   | 2,444    |   |              | 71       |                |   | (15,064) |   |   | 25,096  |
| Real      estate                                                                                  |               | -            |       |   | 1,000    |   |              | -        |                |   | (1,000) |   |   | -  |
| Other      invested assets                                                                        |               | (65,565)          |       |   | 502      |   |              | 502      |                |   | -  |   |   | (64,561) |
| Purchases      of:                                                                                |               |              |       |   |          |   |              |          |                |   |   |   |   |   |
| Available-for-sale      fixed maturity securities                                                 |               | (3,501)           |       |   | (42,645)      |   |              | (253)         |                |   | -  |   |   | (46,399) |
| Trading      fixed maturity securities                                                            |               | (1,114,393)       |       |   | (218,072)     |   |              | -        |                |   | -  |   |   | (1,332,465) |
| Mortgage      loans                                                                               |               | 3,409        |       |   | (18,840)      |   |              | (15,064)      |                |   | 15,064  |   |   | (15,431) |
| Real      estate                                                                                  |               | (1,685)           |       |   | -        |   |              | (219)         |                |   | 1,000  |   |   | (904) |
| Other      invested assets                                                                        |               | (16,616)          |       |   | -        |   |              | -        |                |   | -  |   |   | (16,616) |
| Net      change in policy loans                                                                   |               | 12,727       |       |   | (655)         |   |              | 226      |                |   | -  |   |   | 12,298  |
| Net      change in short-term investments                                                         |               | (751,435)         |       |   | (31,001)      |   |              | (2,000)       |                |   | -  |   |   | (784,436) |
|                                                                                              |               |              |       |   |          |   |              |          |                |   |   |   |   |   |
| Net      cash used in investing activities                                                        | $                  | (1,278,952)       |       | $      | (121,924)     |   | $                 | (14,425)      |                | $ | -  |   | $ | (1,415,301) |

----

|                                                     | SLUSas      Parent |            |  SLNY |   | OtherSubs     |   |  Elimination |         | ConsolidatedCompany |
|----------------------------------------------------------|--------------------|-----------------|------------|--------|---------------|--------|-------------------|--------------|---------------------|
|                                                     |               |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Cash      Flows From Financing Activities:               |               |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Additions      to contractholder deposit funds           | $                  | 284,686    |       | $      | 43,929   |   | $                 | -       |                | $ | -  |   | $ | 328,615  |
| Withdrawals      from contractholder deposit funds       |               | (552,936)       |       |   | (56,094)      |   |              | (1,780)      |                |   | -  |   |   | (610,810) |
| Additional      capital contributed to subsidiaries      |               | (15,097)        |       |   | -        |   |              | -       |                |   | 15,097  |   |   | -  |
| Capital      contribution from Parent                    |               | 400,000    |       |   | -        |   |              | 15,097  |                |   | (15,097) |   |   | 400,000  |
| Other,      net                                          |               | (14,085)        |       |   | (3,552)       |   |              | 20      |                |   | -  |   |   | (17,617) |
|                                                     |               |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Net      cash provided by (used in) financing activities |               | 102,568    |       |   | (15,717)      |   |              | 13,337  |                |   | -  |   |   | 100,188  |
|                                                     |               |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Net      change in cash and cash equivalents             |               | (971,778)       |       |   | (99,478)      |   |              | 145     |                |   | -  |   |   | (1,071,111) |
|                                                     |               |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period      |               | 1,616,991  |       |   | 175,322  |   |              | 11,895  |                |   | -  |   |   | 1,804,208  |
|                                                     |               |            |       |   |          |   |              |         |                |   |   |   |   |   |
| Cash      and cash equivalents, end of period            | $                  | 645,213    |       | $      | 75,844   |   | $                 | 12,040  |                | $ | -  |   | $ | 733,097  |
|                                                     |               |            |       |   |          |   |              |         |                |   |   |   |   |   |
|                                                     |               |            |       |   |          |   |              |         |                |   |   |   |   |   |

----

|                                                                                                        | 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 income (loss) to netcash      provided by (used in) operating activities: |               |          |       |   |         |   |              |          |                |   |   |   |   |   |
| Net      amortization of premiums on investments                                                            |               | 8,934    |       |   | 146     |   |              | 6             |                |   | -  |   |   | 9,086  |
| Amortization      of DAC, VOBA and VOCRA                                                                    |               | (96,718)      |       |   | (10,706)     |   |              | -        |                |   | -  |   |   | (107,424) |
| Depreciation      and amortization                                                                          |               | 1,457    |       |   | 78           |   |              | 215           |                |   | -  |   |   | 1,750  |
| Net      (gains) losses on derivatives                                                                      |               | (172,068)     |       |   | (596)        |   |              | 3        |                |   | -  |   |   | (172,661) |
| Net      realized losses (gains) on available-for-saleinvestments                                           |               | 1,946    |       |   | 1       |   |              | (50)          |                |   | -  |   |   | 1,897  |
| Net      decrease in fair value of trading investments                                                      |               | 28,698   |       |   | 1,182   |   |              | -        |                |   | -  |   |   | 29,880  |
| Net      realized losses on trading investments                                                             |               | 44,848   |       |   | 49      |   |              | -        |                |   | -  |   |   | 44,897  |
| Undistributed      income in private equity limitedpartnerships                                             |               | (1,481)       |       |   | -       |   |              | -        |                |   | -  |   |   | (1,481) |
| Interest      credited to contractholder deposits                                                           |               | 100,107  |       |   | 12,212  |   |              | 465      |                |   | -  |   |   | 112,784  |
| Equity      in net loss of Subsidiaries                                                                     |               | 78,911   |       |   | -       |   |              | -        |                |   | (78,911) |   |   | -  |
| Deferred      federal income taxes                                                                          |               | 71,915   |       |   | 4,999   |   |              | 112      |                |   | -  |   |   | 77,026  |
| Equity      in net income of subsidiaries                                                                   |               | -        |       |   | -       |   |              | -        |                |   | -  |   |   | -  |
| Changes      in assets and liabilities:                                                                     |               |          |       |   |         |   |              |          |                |   |   |   |   |   |
| Additions      to DAC, VOBA and VOCRA                                                                       |               | (78,536)      |       |   | (9,581)      |   |              | (1)           |                |   | -  |   |   | (88,118) |
| Accrued      investment income                                                                              |               | 31,885   |       |   | 1,194   |   |              | 77       |                |   | -  |   |   | 33,156  |
| Net      reinsurance receivable/payable                                                                     |               | 44,162   |       |   | (6,055)      |   |              | 163      |                |   | -  |   |   | 38,270  |
| Future      contract and policy benefits                                                                    |               | 29,745   |       |   | 1,144   |   |              | -        |                |   | -  |   |   | 30,889  |
| Other,      net                                                                                             |               | (704)         |       |   | (141,216)    |   |              | 111      |                |   | -  |   |   | (141,809) |
| Adjustment      related to discontinued operations                                                          |               | -        |       |   | -       |   |              | 219,553  |                |   | -  |   |   | 219,553  |
|                                                                                                        |               |          |       |   |         |   |              |          |                |   |   |   |   |   |
| 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 maturity securities                                                           |               | 9,570    |       |   | 60      |   |              | 85       |                |   | -  |   |   | 9,715  |
| Trading      fixed maturity securities                                                                      |               | 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 maturity securities                                                           |               | (925)         |       |   | -       |   |              | -        |                |   | -  |   |   | (925) |
| Trading      fixed maturity securities                                                                      |               | (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      change in short-term investments                                                                   |               | (428,582)     |       |   | (15,015)     |   |              | 10,700   |                |   | -  |   |   | (432,897) |
|                                                                                                        |               |          |       |   |         |   |              |          |                |   |   |   |   |   |
| Net      cash (used in) provided by investing activities                                                    | $                  | (99,320)      |       | $      | 16,113  |   | $                 | 19,949   |                | $ | -  |   | $ | (63,258) |

----

|                                                | 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        |               | 571,694  |       |   | (82,691)  |   |              | 256,294  |                |   | -  |   |   | 745,297  |
|                                                |               |          |       |   |           |   |              |          |                |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period |               | 733,518  |       |   | 261,989   |   |              | 29,161   |                |   | -  |   |   | 1,024,668  |
|                                                |               |          |       |   |           |   |              |          |                |   |   |   |   |   |
| Cash      and cash equivalents, end of period       | $                  | 1,305,212     |       | $      | 179,298   |   | $                 | 285,455  |                | $ | -  |   | $ | 1,769,965  |
|                                                |               |          |       |   |           |   |              |          |                |   |   |   |   |   |
|                                                |               |          |       |   |           |   |              |          |                |   |   |   |   |   |

----

----

|                                  | 2009   |
|---------------------------------------|--------|
|                                  |   |   |
| Total      revenues                   | $      |      (151,284) |
| Total      benefits and expenses      |   |            (4,380) |
| Loss      before income taxes expense |   |        (146,904) |
|                                  |   |   |
| Net      loss                         | $      |          (91,662) |

----

|                              |   | 2010                                          |   | 2009                                        |
|-----------------------------------|--------|-----------------------------------------------|--------|---------------------------------------------|
|                              |   |                                          |   |                                        |
| Interest      rate contracts      |   | $      (42,444) |   | $     67,966  |
| Foreign      currency contracts   |   | (3,459)                                       |   | 4,662                                  |
| Equity      contracts             |   | (5,229)                                       |   | 7,706                                  |
| Credit      contracts             |   | (263)                                         |   | 2,923                                  |
| Futures                           |   | (71,775)                                      |   | 38,250                                 |
| Embedded      derivatives         |   | 81,720                                   |   | 8,339                                  |
| Net      derivative (loss) income |   | $      (41,450) |   | $   129,846             |

----

----

----

----

----

----

|                                  | 2010   |    | 2009   |
|---------------------------------------|--------|---------|--------|
|                                  |   |    |   |   |   |
| Total      revenues                   | $      | 542,125 |   | $ | 338,430  |
| Total      benefits and expenses      |   | 337,465 |   |   | 118,985  |
| Income      before income tax expense |   | 204,660 |   |   | 219,445  |
|                                  |   |    |   |   |   |
| Net      income                       | $      | 138,135 |   | $ | 147,863  |

----

----

|                                                   | 2010   |         | 2009   |
|--------------------------------------------------------|--------|--------------|--------|
|                                                   |   |         |   |   |   |
| Total      revenues                                    | $      | 15,226  |   | $ | 12,515  |
| Total      benefits and expenses                       |   | 14,215  |   |   | 14,221  |
| Income      (loss) before income tax expense (benefit) |   | 1,011   |   |   | (1,706) |
|                                                   |   |         |   |   |   |
| Net      income (loss)                                 | $      | 711     |   | $ | (4,941) |
|                                                   |   |         |   |   |   |

----

|                                 | 2010                                                                                                                               |   | 2009                                                                                                         |
|--------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|
| Total      revenues                  | $               32,261                             |   | $              33,390             |
| Total      benefits and expenses     | 31,148                                                                                                                        |   | 26,891                                                                                                  |
| Income      before income taxexpense |  1,113                                                                                                                   |   |  6,499                                                                                             |
|                                 |                                                                                                                               |   |                                                                                                         |
| Net      income                      | $                    723  |   | $                4,224  |

----

|                                | 2010                                                                                          |   | 2009                                                                                               |
|-------------------------------------|-----------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|
| Total      revenues                 | $             (32,136)       |   | $               (3,988) |
| Total      benefits and expenses    | 10,874                                                                                   |   | 6,271                                                                                         |
| Loss      before income tax benefit | (43,010)                                                                                      |   | (10,259)                                                                                           |
|                                |                                                                                          |   |                                                                                               |
| Net      loss                       | $              (27,918) |   | $               (5,870) |

----

----

| 10.1   | Administrative      Services Agreement, effective as of 11:59 p.m. Eastern Standard Time on      December 31, 2009, by and between Sun Life Assurance Company of Canada      (U.S.) and Sun Life Financial (U.S.) Services Company,  Inc. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                      |
| 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,      2010 | /s/ Westley V.      Thompson                  |
|-------------------|-----------------------------------------------|
| Date              | Westley      V. Thompson, President, SLF U.S. |
|              | (Principal      Executive Officer)            |

| May 14,      2010 | /s/ Douglas C.      Miller                            |
|-------------------|-------------------------------------------------------|
| Date              | Douglas      C. Miller, Vice President and Controller |
|              | (Chief      Accounting Officer)                       |

----