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| For      the quarterly period endedSeptember      30, 2009 | Commission      File Numbers: 2-99959,      33-29851, 33-31711, 33-41858, 33-43008, 33-58853, 333-11699, 333-77041,      333-62837, 333-45923, 333-88069, 333-39306, 333-46566, 333-82816,      333-82824, 333-111636, 333-130699, 333-130703, 333-130704, 333-133684,      333-133685, 333-133686, 333-39034, 333-144903-01, 333-144908-01,      333-144911-01, 333-144912-01, 333-155716, 333-155726, 333-155791,      333-155792, 333-155793, 333-155797, 333-156303, 333-156304, 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 nine-month periods ended      September 30, 2009 and 2008 (Unaudited)                            |  3 |
|          |                                                                                                                                                               |    |
|          | Condensed      Consolidated Statements of Operations for the three-month periods ended      September 30, 2009 and 2008 (Unaudited)                           |  4 |
|          |                                                                                                                                                               |    |
|          | Condensed      Consolidated Balance Sheets as of September 30, 2009 and December      31,2008      (Unaudited)                                                     |  5 |
|          |                                                                                                                                                               |    |
|          | Condensed      Consolidated Statements of Comprehensive Income (Loss) for the nine and      three-month periods ended September 30, 2009 and 2008      (Unaudited) |  6 |
|          |                                                                                                                                                               |    |
|          | Condensed      Consolidated Statements of Stockholder’s Equity for the nine-month periods      ended September 30, 2009 and 2008 (Unaudited)                 |  7 |
|          |                                                                                                                                                               |    |
|          | Condensed      Consolidated Statements of Cash Flows for the nine-month periods      endedSeptember      30, 2009 and 2008 (Unaudited)                             |  8 |
|          |                                                                                                                                                               |    |
|          | Notes      to the Unaudited Condensed Consolidated Financial    Statements                                                                                         | 10      |
|          |                                                                                                                                                               |    |
| Item      2.  | Management's      Discussion and Analysis of Financial Position and Results of      Operations                                                                     | 76      |
|          |                                                                                                                                                               |    |
| Item      3.  | Quantitative      and Qualitative Disclosures About Market Risk                                                                                                    | 93      |
|          |                                                                                                                                                               |    |
| Item      4T. | Controls      and Procedures                                                                                                                                       | 93      |

| PART      II - | OTHER      INFORMATION                                           |   |
|----------------|------------------------------------------------------------------|--------|
|           |                                                             |   |
| Item      1.   | Legal      Proceedings                                           | 93     |
|           |                                                             |   |
| Item      1A.  | Risk      Factors                                                | 93     |
|           |                                                             |   |
| Item      2.   | Unregistered      Sales of Equity Securities and Use of Proceeds | 94     |
|           |                                                             |   |
| Item      3.   | Defaults      Upon Senior Securities                             | 94     |
|           |                                                             |   |
| Item      4.   | Submission      of Matters to a Vote of Security Holders         | 94     |
|           |                                                             |   |
| Item      5.   | Other      Information                                           | 94     |
|           |                                                             |   |
| Item      6.   | Exhibits                                                         | 94     |

----

|                                                                                                                             |   | Unaudited  |
|----------------------------------------------------------------------------------------------------------------------------------|--------|------------|
|                                                                                                                             |   |  2009 |   |   |  2008 |
|                                                                                                                             |   |       |   |   |   |
| Revenues                                                                                                                         |   |       |   |   |   |
|                                                                                                                             |   |       |   |   |   |
| Premiums      and annuity considerations                                                                                         | $      | 101,012    |   | $ |    90,561  |
| Net      investment income (loss) (1)                                                                                            |   | 2,357,999  |   |   | (860,928) |
| Net      derivative loss (2)                                                                                                     |   | (2,856)    |   |   | (273,048) |
| Net      realized investment losses, excluding impairment losses      on available-for-sale securities                      |   | (8,401)    |   |   | (293,494) |
| Other-than-temporary      impairment losses (3)                                                                                  |   | (4,834)    |   |   | (18,264) |
| Fee      and other income                                                                                                        |   | 302,742    |   |   | 379,999  |
|                                                                                                                             |   |       |   |   |   |
| Total      revenues                                                                                                              |   | 2,745,662  |   |   | (975,174) |
|                                                                                                                             |   |       |   |   |   |
| Benefits      and Expenses                                                                                                       |   |       |   |   |   |
|                                                                                                                             |   |       |   |   |   |
| Interest      credited                                                                                                           |   | 317,555    |   |   |                    417,148  |
| Interest      expense                                                                                                            |   | 52,010     |   |   |                      86,133  |
| Policyowner      benefits                                                                                                        |   | 118,060    |   |   |                    231,655  |
| Amortization      of deferred policy acquisition costs        and value of business and customer renewals acquired (4) |   | 515,179    |   |   | (592,967) |
| Other      operating expenses                                                                                                    |   | 183,572    |   |   |                   223,671  |
|                                                                                                                             |   |       |   |   |   |
| Total      benefits and expenses                                                                                                 |   | 1,186,376  |   |   | 365,640 |
|                                                                                                                             |   |       |   |   |   |
| Income      (loss) before income tax expense (benefit)                                                                           |   | 1,559,286  |   |   | (1,340,814) |
|                                                                                                                             |   |       |   |   |   |
| Income      tax expense (benefit)                                                                                                |   | 450,689    |   |   | (405,343) |
|                                                                                                                             |   |       |   |   |   |
| Net      income (loss)                                                                                                           | $      | 1,108,597  |   | $ | (935,471) |

|   | (1)Net      investment income (loss) includes an increase (decrease) in market value      of trading fixed maturity securities of $2,044.9 million and $(1,676.0)      million for the nine-month periods ended September 30, 2009 and 2008,      respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)  Net      derivative loss for the nine-month period ended September 30, 2008      includes $166.1 million of income related to the Company’s adoption of      Financial Accounting Standards Board (“FASB”) Accounting      Standards Codification (“ASC”) Topic 820, “Fair      Value Measurements and Disclosures,” which was previously issued as      Statement of Financial Accounting Standards (“SFAS”) No. 157, “Fair      Value Measurements,” which is further discussed in Note  4. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3)The      $4.8 million other-than-temporary impairment (“OTTI”) losses for the      nine-month period ended September 30, 2009 represent solely credit      losses.  The Company incurred no non-credit OTTI losses during      the nine-month period ended September 30, 2009 and as such no non-credit      OTTI losses were recognized in other comprehensive loss for the      period. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4)Amortization      of deferred policy acquisition costs and value of business and customer      renewals acquired for the nine-month period ended September 30, 2008      includes $3.2 million of expenses related to the Company’s adoption of      FASB ASC Topic 820, which is further discussed in Note  4. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                               |   | Unaudited     |
|------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|
|                                                                                                                               |   | 2009          |   |   | 2008 |
|                                                                                                                               |   |          |   |   |   |
| Revenues                                                                                                                           |   |          |   |   |   |
|                                                                                                                               |   |          |   |   |   |
| Premiums      and annuity considerations                                                                                           | $      | 35,517        |   | $ | 30,189  |
| Net      investment income (loss) (1)                                                                                              |   | 1,214,599     |   |   | (573,704) |
| Net      derivative loss                                                                                                           |   | (304,446)     |   |   | (259,175) |
| Net      realized investment losses, excluding impairment losses on      available-for-sale securities                             |   |  (5,564) |   |   | (296,784) |
| Other-than-temporary      impairment losses (2)                                                                                    |   | -             |   |   | (18,264) |
| Fee      and other income                                                                                                          |   | 204,479       |   |   | 124,326  |
|                                                                                                                               |   |          |   |   |   |
| Total      revenues                                                                                                                |   | 1,144,585     |   |   | (993,412) |
|                                                                                                                               |   |          |   |   |   |
| Benefits      and Expenses                                                                                                         |   |          |   |   |   |
|                                                                                                                               |   |          |   |   |   |
| Interest      credited                                                                                                             |   | 75,570        |   |   | 133,145  |
| Interest      expense                                                                                                              |   | 12,841        |   |   | 29,585  |
| Policyowner      benefits                                                                                                          |   | 23,533        |   |   | 103,490  |
| Amortization      of deferred policy acquisition costs         and value of business and customer renewals acquired |   | 146,291       |   |   | (298,058) |
| Other      operating expenses                                                                                                      |   | 82,737        |   |   | 62,269  |
|                                                                                                                               |   |          |   |   |   |
| Total      benefits and expenses                                                                                                   |   | 340,972       |   |   | 30,431  |
|                                                                                                                               |   |          |   |   |   |
| Income      (loss) before income tax expense (benefit)                                                                             |   | 803,613       |   |   | (1,023,843) |
|                                                                                                                               |   |          |   |   |   |
| Income      tax expense (benefit)                                                                                                  |   | 185,940       |   |   | (274,506) |
|                                                                                                                               |   |          |   |   |   |
| Net      income (loss)                                                                                                             | $      | 617,673       |   | $ | (749,337) |

|   | (1)Net      investment income (loss) includes an increase (decrease) in market value      of trading fixed maturity securities of $1,067.0 million and $(871.9)      million for the three-month periods ended September 30, 2009 and 2008,      respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) The Company incurred      no OTTI losses during the three-month period ended September 30,      2009. |
|--------|----------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                               |                    | Unaudited  |
|----------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|------------|
| ASSETS                                                                                                                                             | September      30, 2009 |       | December      31, 2008 |
| Investments                                                                                                                                        |                    |       |   |   |   |
| Available-for-sale      fixed maturities at fair value (amortized cost of        $1,185,813 and $782,861 at 2009 and 2008, respectively) | $                       | 1,238,122  |   | $ | 674,020  |
| Trading      fixed maturities at fair value (amortized cost of $13,893,696        and $14,909,429 at 2009 and 2008, respectively)   |                    | 12,781,378 |   |   | 11,762,146  |
| Mortgage      loans                                                                                                                                |                    | 1,975,462  |   |   | 2,083,003  |
| Derivative      instruments – receivable                                                                                                     |                    | 337,494    |   |   | 727,103  |
| Limited      partnerships                                                                                                                          |                    | 50,236     |   |   | 78,289  |
| Real      estate                                                                                                                                   |                    | 200,059    |   |   | 201,470  |
| Policy      loans                                                                                                                                  |                    | 719,428    |   |   | 729,407  |
| Other      invested assets                                                                                                                         |                    | 40,522     |   |   | 211,431  |
| Cash      and cash equivalents                                                                                                                     |                    | 3,022,206  |   |   | 1,624,149  |
| Total      investments and cash                                                                                                                    |                    | 20,364,907 |   |   | 18,091,018  |
|                                                                                                                                               |                    |       |   |   |   |
| Accrued      investment income                                                                                                                     |                    | 233,656    |   |   | 282,564  |
| Deferred      policy acquisition costs                                                                                                             |                    | 2,707,154  |   |   | 2,862,401  |
| Value      of business and customer renewals acquired                                                                                              |                    | 166,590    |   |   | 179,825  |
| Net      deferred tax asset                                                                                                                        |                    | 364,232    |   |   | 856,845  |
| Goodwill                                                                                                                                           |                    | 7,299      |   |   | 7,299  |
| Receivable      for investments sold                                                                                                               |                    | 25,373     |   |   | 7,548  |
| Reinsurance      receivable                                                                                                                        |                    | 3,244,848  |   |   | 3,076,615  |
| Other      assets                                                                                                                                  |                    | 241,714    |   |   | 222,840  |
| Separate      account assets                                                                                                                       |                    | 22,472,326 |   |   | 20,531,724  |
|                                                                                                                                               |                    |       |   |   |   |
| Total      assets                                                                                                                                  | $                       | 49,828,099 |   | $ | 46,118,679  |
|                                                                                                                                               |                    |       |   |   |   |
| LIABILITIES                                                                                                                                        |                    |       |   |   |   |
|                                                                                                                                               |                    |       |   |   |   |
| Contractholder      deposit funds and other policy liabilities                                                                                     | $                       | 17,778,143 |   | $ | 17,545,721  |
| Future      contract and policy benefits                                                                                                           |                    | 932,355    |   |   | 1,014,688  |
| Payable      for investments purchased                                                                                                             |                    | 91,306     |   |   | 363,513  |
| Accrued      expenses and taxes                                                                                                                    |                    | 156,749    |   |   | 118,671  |
| Debt      payable to affiliates                                                                                                                    |                    | 2,098,000  |   |   | 1,998,000  |
| Reinsurance      payable                                                                                                                           |                    | 2,104,187  |   |   | 1,650,821  |
| Derivative      instruments – payable                                                                                                        |                    | 778,123    |   |   | 1,494,341  |
| Other      liabilities                                                                                                                             |                    | 644,078    |   |   | 605,945  |
| Separate      account liabilities                                                                                                                  |                    | 22,472,326 |   |   | 20,531,724  |
|                                                                                                                                               |                    |       |   |   |   |
| Total      liabilities                                                                                                                             |                    | 47,055,267 |   |   | 45,323,424 |
|                                                                                                                                               |                    |       |   |   |   |
| Commitments      and contingencies – Note 8                                                                                                  |                    |       |   |   |   |
|                                                                                                                                               |                    |       |   |   |   |
| STOCKHOLDER’S      EQUITY                                                                                                                    |                    |       |   |   |   |
|                                                                                                                                               |                    |       |   |   |   |
| Common      stock, $1,000 par value – 10,000 shares authorized;        6,437 shares issued and outstanding in 2009 and 2008   | $                       | 6,437      |   | $ | 6,437  |
| Additional      paid-in capital                                                                                                                    |                    | 3,621,022  |   |   | 2,872,242  |
| Accumulated      other comprehensive loss                                                                                                          |                    | (18,822)   |   |   | (129,884) |
| Accumulated      deficit                                                                                                                           |                    | (835,805)  |   |   | (1,953,540) |
|                                                                                                                                               |                    |       |   |   |   |
| Total      stockholder’s equity                                                                                                              |                    | 2,772,832  |   |   | 795,255  |
|                                                                                                                                               |                    |       |   |   |   |
| Total      liabilities and stockholder’s equity                                                                                              | $                       | 49,828,099 |   | $ | 46,118,679  |

----

|                                                                                                                                            | Unaudited |
|-------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                                                            |      |  2009 |   |   |  2008 |
|                                                                                                                                            |      |   |   |   |   |
| Net      income (loss)                                                                                                                          | $         | 1,108,597 |   | $ | (935,471) |
|                                                                                                                                            |      |   |   |   |   |
| Other      comprehensive income (loss):                                                                                                         |      |   |   |   |   |
|                                                                                                                                            |      |   |   |   |   |
| Change      in unrealized holding gains (losses) on available-        for-sale securities, net of tax and policyholder amounts (1)    |      | 119,266 |   |   | (88,638) |
| Reclassification      adjustment for OTTI losses, net of tax (5)                                                                                |      | -  |   |   | -  |
| Reclassification      adjustments of net realized investment losses        into net income (loss), net of tax (2) |      | 934 |   |   |                  9,255 |
|                                                                                                                                            |      |   |   |   |   |
| Other      comprehensive income (loss)                                                                                                          |      | 120,200 |   |   | (79,383) |
|                                                                                                                                            |      |   |   |   |   |
| Comprehensive      income (loss)                                                                                                                | $         | 1,228,797 |   | $ | (1,014,854) |

| (1)   | Net      of tax of $(64.2) million and $47.7 million for the nine-month periods      ended September 30, 2009 and 2008,respectively. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Net      of tax of $(0.5) million and $(5.0) million for the nine-month periods      ended September 30, 2009 and 2008,respectively. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                               | Unaudited |
|----------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                                                               |      |  2009 |   |   |  2008 |
|                                                                                                                                               |      |   |   |   |   |
| Net      income (loss)                                                                                                                             | $         | 617,673 |   | $ | (749,337) |
|                                                                                                                                               |      |   |   |   |   |
| Other      comprehensive income (loss):                                                                                                            |      |   |   |   |   |
|                                                                                                                                               |      |   |   |   |   |
| Change      in unrealized holding gains (losses) on available-        for-sale securities, net of tax and policyholder amounts (3)       |      | 67,984 |   |   | (60,837) |
| Reclassification      adjustment for OTTI losses, net of tax (5)                                                                                   |      | -  |   |   | -  |
| Reclassification      adjustments of net realized investment (gains)        losses into net income (loss), net of tax (4) |      | (1,027) |   |   |             10,767 |
|                                                                                                                                               |      |   |   |   |   |
| Other      comprehensive income (loss)                                                                                                             |      | 66,957 |   |   | (50,070) |
|                                                                                                                                               |      |   |   |   |   |
| Comprehensive      income (loss)                                                                                                                   | $         | 684,630 |   | $ | (799,407) |

| (3)   | Net      of tax of $(36.6) million and $32.8 million for the three-month periods      ended September 30, 2009 and 2008,respectively. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Net      of tax of $0.5 million and $(5.8) million for the three-month periods      ended September 30, 2009 and 2008,respectively. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Represents      the reclassification adjustment for other-than-temporarily impaired fixed      maturity available-for-sale securities for which a portion of the loss was      recognized in the condensed consolidated statements of      operations. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                   | CommonStock |   | AdditionalPaid-InCapital |   | AccumulatedOtherComprehensiveLoss      (3) |   | RetainedEarnings(AccumulatedDeficit) |      | TotalStockholder’sEquity |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|--------|--------------------------|--------|--------------------------------------------|--------|--------------------------------------|-----------|--------------------------------|
|                                                                                                                                                                   |        |   |                     |   |                                       |   |                                 |      |                           |   |   |   |   |   |
| Balance      at December 31, 2007                                                                                                                                      | $           | 6,437  |                     | $      | 2,146,436                                  |   | $                                    | (92,403)  |                           | $ | 369,677  |   | $ | 2,430,147  |
|                                                                                                                                                                   |        |   |                     |   |                                       |   |                                 |      |                           |   |   |   |   |   |
| Cumulative      effect of accountingchanges      related to the adoptionof      FASB ASC Topics 715 and825,      net of tax(1)                                         |        |   |                     |   |                                       |   |                                 | 88,033    |                           |   | (88,376) |   |   | (343) |
| Net      loss                                                                                                                                                          |        |   |                     |   |                                       |   |                                 |      |                           |   | (935,471) |   |   | (935,471) |
| Tax      benefit from stock options                                                                                                                                    |        |   |                     |   | 806                                        |   |                                 |      |                           |   |   |   |   |              806 |
| Capital      contribution from Parent                                                                                                                                  |        |   |                     |   | 300,000                                    |   |                                 |      |                           |   |   |   |   |        300,000 |
| Other      comprehensive loss                                                                                                                                          |        |   |                     |   |                                       |   |                                 | (79,383)  |                           |   |   |   |   | (79,383) |
|                                                                                                                                                                   |        |   |                     |   |                                       |   |                                 |      |                           |   |   |   |   |   |
| Balance      at September 30, 2008                                                                                                                                     | $           | 6,437  |                     | $      | 2,447,242                                  |   | $                                    | (83,753)  |                           | $ | (654,170) |   | $ |    1,715,756 |
|                                                                                                                                                                   |        |   |                     |   |                                       |   |                                 |      |                           |   |   |   |   |   |
|                                                                                                                                                                   |        |   |                     |   |                                       |   |                                 |      |                           |   |   |   |   |   |
| Balance      at December 31, 2008                                                                                                                                      | $           | 6,437  |                     | $      | 2,872,242                                  |   | $                                    | (129,884) |                           | $ | (1,953,540) |   | $ | 795,255  |
|                                                                                                                                                                   |        |   |                     |   |                                       |   |                                 |      |                           |   |   |   |   |   |
| Cumulative      effect of accounting        changes related to the adoption        of FASB ASC Topic 320, net        of tax (2)      (3) |        |   |                     |   |                                       |   |                                 | (9,138)   |                           |   | 9,138 |   |   | -  |
| Net      income                                                                                                                                                        |        |   |                     |   |                                       |   |                                 |      |                           |   | 1,108,597 |   |   | 1,108,597 |
| Tax      benefit from stock options                                                                                                                                    |        |   |                     |   | 128                                        |   |                                 |      |                           |   |   |   |   | 128 |
| Capital      contribution from Parent                                                                                                                                  |        |   |                     |   | 748,652                                    |   |                                 |      |                           |   |   |   |   | 748,652 |
| Other      comprehensive income                                                                                                                                        |        |   |                     |   |                                       |   |                                 | 120,200   |                           |   |   |   |   | 120,200 |
|                                                                                                                                                                   |        |   |                     |   |                                       |   |                                 |      |                           |   |   |   |   |   |
| Balance      at September 30, 2009                                                                                                                                     | $           | 6,437  |                     | $      | 3,621,022                                  |   | $                                    | (18,822)  |                           | $ | (835,805) |   | $ | 2,772,832 |

| (1)   | Portions      of FASB ASC Topic 715, “Compensation–Retirement Benefits,” were previously      issued as SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension      and Other Postretirement Plans.”  Portions of FASB ASC 825,      “Financial Instruments” were previously issued as SFAS No. 159, “The Fair      Value Option for Financial Assets and Financial    Liabilities.” |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Portions      of FASB ASC Topic 320, “Investments- Debt and Equity Securities” were      previously issued as FASB Staff Position (“FSP”) Nos. 115-2 and      124-2, “Recognition and Presentation of Other-than-Temporary      Impairments.” |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | As      of September 30, 2009, the total amount of after tax non-credit OTTI      losses recorded in the Company’s accumulated other comprehensive loss was      $9.1 million. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                              |                                                                                               |            |            | Unaudited  |
|---------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|-----------------|-----------------|------------|
|                                                                                              |                                                                                               |            |            |  2009 |   |  2008 |
| Cash      Flows From Operating Activities:                                                        |                                                                                               |            |            |       |   |
| Net      income (loss)                                                                            | $                                                                                                  | 1,108,597  |            | $          | (935,471) |
| Adjustments      to reconcile net income (loss) to net cash provided byoperating      activities: |                                                                                               |            |            |       |   |
|                                                                                              | Net      amortization of premiums on investments                                                   |            | 6,104      |       |   | 17,864  |
|                                                                                              |  Amortization      of deferred policy acquisition costs and value of                          |            | 515,179    |       |   | (592,967) |
| business      and customer renewals acquired                                                      |
|                                                                                              | Depreciation      and amortization                                                                 |            | 4,283      |       |   | 4,952  |
|                                                                                              | Net      (gain) loss on derivatives                                                                |            | (99,101)        |       |   | 223,269  |
|                                                                                              | Net      realized losses and OTTI credit losses on available-for-sale        investments |            | 13,235     |       |   | 13,409  |
|                                                                                              | Changes      in fair value of trading investments                                                  |            | (2,044,885)     |       |   | 1,676,039  |
|                                                                                              | Net      realized losses on trading investments                                                    |            | 268,111    |       |   | 324,849  |
|                                                                                              | Undistributed      loss on private equity limited partnerships                                     |            | 11,477     |       |   | 4,919  |
|                                                                                              | Interest      credited to contractholder deposits                                                  |            | 317,555    |       |   | 417,148  |
|                                                                                              | Deferred      federal income taxes                                                                 |            | 427,890    |       |   | (350,715) |
| Changes      in assets and liabilities:                                                           |                                                                                               |            |            |       |   |
|                                                                                              | Additions      to deferred policy acquisition costs and value of business                          |            |            |       |   |   |
|                                                                                              | and      customer renewals acquired                                                                |            | (305,494)       |       |   | (273,189) |
|                                                                                              | Accrued      investment income                                                                     |            | 48,908     |       |   | 43,466  |
|                                                                                              | Net      change in reinsurance receivable/payable                                                  |            | 272,942    |       |   | (676) |
|                                                                                              | Future      contract and policy benefits                                                           |            | (82,333)        |       |   | 58,615  |
|                                                                                              | Other,      net                                                                                    |            | (74,269)        |       |   | 135,974  |
|                                                                                              |                                                                                               |            |            |       |   |
| Net      cash provided by operating activities                                                    | $                                                                                                  | 388,199         |            | $          | 767,486  |
|                                                                                              |                                                                                               |            |            |       |   |   |   |
| Cash      Flows From Investing Activities:                                                        |                                                                                               |            |            |       |   |
| Sales,      maturities and repayments of:                                                         |                                                                                               |            |            |       |   |
|                                                                                              | Available-for-sale      fixed maturities                                                           | $               | 40,106     |       | $ | 89,425  |
|                                                                                              | Trading      fixed maturities                                                                      |            | 1,203,168  |       |   | 1,512,383  |
|                                                                                              | Mortgage      loans                                                                                |            | 108,465    |       |   | 260,845  |
|                                                                                              | Real      estate                                                                                   |            | -          |       |   | 1,160  |
|                                                                                              | Other      invested assets                                                                         |            | (124,105)       |       |   | 258,973  |
| Purchases      of:                                                                                |                                                                                               |            |            |       |   |
|                                                                                              | Available-for-sale      fixed maturities                                                           |            | (337,123)       |       |   | (68,127) |
|                                                                                              | Trading      fixed maturities                                                                      |            | (471,133)       |       |   | (1,815,487) |
|                                                                                              | Mortgage      loans                                                                                |            | (12,059)        |       |   | (53,246) |
|                                                                                              | Real      estate                                                                                   |            | (1,551)         |       |   | (4,164) |
|                                                                                              | Other      invested assets                                                                         |            | (97,923)        |       |   | (79,977) |
| Net      change in other investments                                                              |                                                                                               | (100,476)       |            |       | (260,196) |
| Net      change in policy loans                                                                   |                                                                                               | 9,979      |            |       | (7,806) |
|                                                                                              |                                                                                               |            |            |       |   |   |   |
| Net      cash provided by (used in) investing activities                                          | $                                                                                                  | 217,348    |            | $          | (166,217) |

----

|                                                     | Unaudited  |
|----------------------------------------------------------|------------|
|                                                     |  2009 |   |  2008 |
|                                                     |       |   |   |   |   |
| Cash      Flows From Financing Activities:               |       |   |   |   |   |
| Additions      to contractholder deposit funds           | $          | 2,302,067  |   | $ | 1,745,079  |
| Withdrawals      from contractholder deposit funds       |       | (2,313,659) |   |   | (2,713,058) |
| Capital      contribution from Parent                    |       | 748,652  |   |   | 300,000  |
| Debt      proceeds                                       |       | 100,000  |   |   | 175,000  |
| Other,      net                                          |       | (44,550) |   |   | (29,760) |
|                                                     |       |   |   |   |   |
| Net      cash provided by (used in) financing activities |       | 792,510  |   |   |        (522,739) |
|                                                     |       |   |   |   |   |
| Net      change in cash and cash equivalents             |       | 1,398,057  |   |   | 78,530  |
|                                                     |       |   |   |   |   |
| Cash      and cash equivalents, beginning of period      |       | 1,624,149  |   |   | 1,169,701  |
|                                                     |       |   |   |   |   |
|                                                     |       |   |   |   |   |
| Cash      and cash equivalents, end of period            | $          | 3,022,206 |   | $ | 1,248,231  |
|                                                     |       |   |   |   |   |

----

|   | 1.      DESCRIPTION OF BUSINESS |
|--------|---------------------------------|

----

----

----

----

----

|   | • |   | Most      of the identifiable assets acquired, liabilities assumed and any      noncontrolling interest in the acquired entity shall be measured at their      acquisition-date fair values;                                                                                                                                               |
|--------|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |   |                                                                                                                                                                                                                                                                                                                                       |
|   | • |   | Acquisition-related      costs incurred by the acquirer shall be expensed in the periods in which      the costs are incurred;                                                                                                                                                                                                             |
|   |    |   |                                                                                                                                                                                                                                                                                                                                       |
|   | • |   | Goodwill      shall be measured as the excess of the consideration transferred,      including the fair value of any contingent consideration, plus the fair      value of any noncontrolling interest in the acquired entity, over the fair      values of the acquired identifiable net assets;                                          |
|   |    |   |                                                                                                                                                                                                                                                                                                                                       |
|   | • |   | Contractual      pre-acquisition contingencies are to be recognized at their acquisition      date fair values and noncontractual pre-acquisition contingencies are to      be recognized at their acquisition date fair values only if it is more      likely than not that the contingency gives rise to an asset or liability;      and |
|   |    |   |                                                                                                                                                                                                                                                                                                                                       |
|   | • |   | Contingent      consideration shall be recognized at the acquisition  date.                                                                                                                                                                                                                                                                |

----

----

----

----

----

----

----

|                       | Nine-month      periods ended |   | Three-month      periods ended |   |
|----------------------------|-------------------------------|--------|--------------------------------|--------|
|                       | September      30,            |   | September      30,             |   | September      30, |   | September      30, |   |
|                       | 2009                          |   | 2008                           |   | 2009 |   | 2008 |   |
|                       |                          |   |                           |   |   |   |   |   |   |   |   |   |
| Value      of distribution | $                             | 224    |                           | $      | 224 |   | $ | 75 |   | $ | 75 |   |
| VOBA                       |                          | 888    |                           |   | 1,349 |   |   | 25 |   |   | 319 |   |
| VOCRA                      |                          | 779    |                           |   | 3,011 |   |   | 710 |   |   | 766 |   |

----

----

|                  Nine-month      period ended September 30, 2009 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                  |
|                                                                                                                                                  | Wealth |   | Individual |   | Group |   |   |   |   |
|                                                                                                                                                  | Management |   | Protection |   | Protection |   | Corporate |   | Totals |
| Total      revenues                                                                                                                                   | $ | 2,308,049  |   | $ | 344,538  |   | $ | 104,252  |   | $ | (11,177) |   | $ | 2,745,662  |
| Total      benefits and expenses                                                                                                                      |   | 976,677  |   |   | 107,735  |   |   | 86,051  |   |   | 15,913  |   |   | 1,186,376  |
| Income      (loss) before income        tax expense (benefit)                                                                               |   | 1,331,372  |   |   | 236,803  |   |   | 18,201  |   |   | (27,090) |   |   | 1,559,286  |
| Net      income                                                                                                                                       | $ | 879,559  |   | $ | 154,027  |   | $ | 11,830  |   | $ | 63,181  |   | $ | 1,108,597  |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                  Nine-month      period ended September 30, 2008 |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      revenues                                                                                                                                   | $ | (985,682) |   | $ | (57,996) |   | $ | 75,880  |   | $ | (7,376) |   | $ | (975,174) |
| Total      benefits and expenses                                                                                                                      |   | 86,966  |   |   | 176,224  |   |   | 78,173  |   |   | 24,277  |   |   | 365,640  |
| Loss      before income tax benefit                                                                                                                   |   | (1,072,648) |   |   | (234,220) |   |   | (2,293) |   |   | (31,653) |   |   | (1,340,814) |
| Net      loss                                                                                                                                         | $ | (674,077) |   | $ | (152,138) |   | $ | (1,491) |   | $ | (107,765) |   | $ | (935,471) |

|                  Three-month      period ended September 30, 2009 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                   |
|                                                                                                                                                   | Wealth |   | Individual |   | Group |   |   |   |   |
|                                                                                                                                                   | Management |   | Protection |   | Protection |   | Corporate |   | Totals |
| Total      revenues                                                                                                                                    | $ | 790,579  |   | $ | 317,021  |   | $ | 35,073  |   | $ | 1,912  |   | $ | 1,144,585  |
| Total      benefits and expenses                                                                                                                       |   | 243,062  |   |   | 65,722  |   |   | 30,335  |   |   | 1,853  |   |   | 340,972  |
| Income      before income tax        expense                                                                                                 |   | 547,517  |   |   | 251,299  |   |   | 4,738  |   |   | 59  |   |   | 803,613  |
| Net      income                                                                                                                                        | $ | 367,050  |   | $ | 162,453  |   | $ | 3,079  |   | $ | 85,091  |   | $ | 617,673  |
|                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                  Three-month      period ended September 30, 2008 |
|                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      revenues                                                                                                                                    | $ | (885,302) |   | $ | (113,043) |   | $ | 24,509  |   | $ | (19,576) |   | $ | (993,412) |
| Total      benefits and expenses                                                                                                                       |   | (60,851) |   |   | 59,173  |   |   | 25,148  |   |   | 6,961  |   |   | 30,431  |
| Loss      before income tax        benefit                                                                                                   |   | (824,451) |   |   | (172,216) |   |   | (639) |   |   | (26,537) |   |   | (1,023,843) |
| Net      loss                                                                                                                                          | $ | (530,624) |   | $ | (111,892) |   | $ | (416) |   | $ | (106,405) |   | $ | (749,337) |

----

----

| ·   | 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 maturities                      |   |         |       |         |   |         |   |   |   |   |   |   |
| Asset-backed      securities                                  |   | $            | -          |         | $      | -            |   | $      | 46 |   | $ | 46 |
| Collateralized      mortgage obligations                      |   |         | -          |         |   | 2,017        |   |   | - |   |   | 2,017 |
| Commercial      mortgage-backed securities                    |   |         | -          |         |   | 14,470       |   |   | 1,901 |   |   | 16,371 |
| Foreign      government & agency securities               |   |         | -          |         |   | 548          |   |   | - |   |   | 548 |
| U.S.      states and political subdivisions securities        |   |         | -          |         |   | -            |   |   | - |   |   | - |
| U.S.      treasury and agency securities                      |   |         | 42,150     |         |   | 49,394       |   |   | - |   |   | 91,544 |
| Corporate      securities                                     |   |         | -          |         |   | 1,119,456    |   |   | 8,140 |   |   | 1,127,596 |
| Total      available-for-sale fixed maturities                |   |         | 42,150     |         |   | 1,185,885    |   |   | 10,087 |   |   | 1,238,122 |
|                                                          |   |         |       |         |   |         |   |   |   |   |   |   |
| Trading      fixed maturities                                 |   |         |       |         |   |         |   |   |   |   |   |   |
| Asset-backed      securities                                  |   |         | -          |         |   | 382,551      |   |   | 126,341 |   |   | 508,892 |
| Collateralized      mortgage obligations                      |   |         | -          |         |   | 732,024      |   |   | 170,044 |   |   | 902,068 |
| Commercial      mortgage-backed securities                    |   |         | -          |         |   | 379,909      |   |   | 261,226 |   |   | 641,135 |
| Foreign      government & agency securities               |   |         | -          |         |   | 68,464       |   |   | 15,530 |   |   | 83,994 |
| U.S.      states and political subdivisions securities        |   |         | -          |         |   | -            |   |   | - |   |   | - |
| U.S.      treasury and agency securities                      |   |         | 644,009    |         |   | 265,447      |   |   | - |   |   | 909,456 |
| Corporate      securities                                     |   |         | -          |         |   | 9,609,754    |   |   | 126,079 |   |   | 9,735,833 |
| Total      trading fixed maturities                           |   |         | 644,009    |         |   | 11,438,149   |   |   | 699,220 |   |   | 12,781,378 |
|                                                          |   |         |       |         |   |         |   |   |   |   |   |   |
| Derivative      instruments - receivable                      |   |         | 3,156      |         |   | 328,972      |   |   | 5,366 |   |   | 337,494 |
| Other      invested assets                                    |   |         | -          |         |   | -            |   |   | - |   |   | - |
| Cash      and cash equivalents                                |   |         | 3,022,206  |         |   | -            |   |   | - |   |   | 3,022,206 |
| Total      investments and cash                               |   |         | 3,711,521  |         |   | 12,953,006   |   |   | 714,673 |   |   | 17,379,200 |
|                                                          |   |         |       |         |   |         |   |   |   |   |   |   |
| Other      assets                                             |   |         |       |         |   |         |   |   |   |   |   |   |
| Separate      account assets (1)      (2)                     |   |         | 16,174,871 |         |   | 5,824,623    |   |   | 642,936 |   |   | 22,642,430 |
|                                                          |   |         |       |         |   |         |   |   |   |   |   |   |
| Total      assets measured at fair value on a recurring basis |   | $            | 19,886,392 |         | $      | 18,777,629   |   | $      | 1,357,609 |   | $ | 40,021,630 |
|                                                          |   |         |       |         |   |         |   |   |   |   |   |   |

|   | (1)      Pursuant to the conditions set forth in FASB ASC Topic 944, previously      issued as American Institute of Certified Public Accountants (“AICPA”) Statement of      Position (“SOP”)      03-1, "Accounting and Reporting by Insurance Enterprises for Certain      Nontraditional Long-Duration Contracts and for Separate Accounts," the      value of separate account liabilities is set to equal the fair value for      separate account assets. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)Excludes      $170.1 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               |   | $            | -       |         | $      | -        |   | $      | 323,408  |   | $ | 323,408  |
| Guaranteed      minimum accumulation benefit liability             |   |         | -       |         |   | -        |   |   | 181,264  |   |   | 181,264  |
| Derivatives      embedded in reinsurance contracts                 |   |         | -       |         |   | 13,049   |   |   | -  |   |   | 13,049  |
| Fixed      index annuities                                         |   |         | -       |         |   | -        |   |   | 131,249  |   |   | 131,249  |
| Total      other policy liabilities                                |   |         | -       |         |   | 13,049   |   |   | 635,921  |   |   | 648,970  |
|                                                               |   |         |         |         |   |          |   |   |   |   |   |   |
| Derivative      instruments – payable                        |   |         | 1,285   |         |   | 728,908  |   |   | 47,930  |   |   | 778,123  |
|                                                               |   |         |         |         |   |          |   |   |   |   |   |   |
| Other      liabilities                                             |   |         |         |         |   |          |   |   |   |   |   |   |
| Bank      overdrafts                                               |   |         | 42,856  |         |   | -        |   |   | -  |   |   | 42,856  |
|                                                               |   |         |         |         |   |          |   |   |   |   |   |   |
| Total      liabilities measured at fair value on a recurring basis |   | $            | 44,141  |         | $      | 741,957  |   | $      | 683,851  |   | $ | 1,469,949  |
|                                                               |   |         |         |         |   |          |   |   |   |   |   |   |

----

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

----

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

----

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

| (1)   | Transfers      in and/or (out) of Level 3 during the nine-month period ended September      30, 2009 are primarily attributable to changes in the observability of      inputs used to price thesecurities. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | 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      outof      level 3         | Endingbalance                                      | Change      inunrealized      (gains)losses      included inearnings      relatingto      instruments stillheld      at thereporting      date |
|-------------------------------------------------------------------------------------------|------------------------------------------|-------------------------------------------------------|----------------------------------------------------------------|---------------------------------------------------------|----------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| Included      inearnings                                                                  | Included      inothercomprehensiveincome |
|                                                                                      |                                     |                                                  |                                                           |                                                    |                                               |                                                                                                                                           |   |
| Other      policy liabilities                                                             |                                     |                                                  |                                                           |                                                    |                                               |                                                                                                                                           |   |
| Guaranteed      minimum withdrawalbenefit      liability                                  | $   335,612          | $   (60,464)                           | $         -  | $       48,260  | $       -  | $  323,408                                                                                                                      | $      (49,589) |
| Guaranteed      minimum accumulationbenefit      liability                                | 358,604                             | (193,195)                                             | -                                                         | 15,855                                             | -                                             | 181,264                                                                                                                                   | (185,607) |
| Derivatives      embedded in reinsurancecontracts                                         | -                                   | -                                                | -                                                         | -                                                  | -                                             | -                                                                                                                                         | -  |
| Fixed      index annuities                                                                | 106,619                             | 10,028                                           | -                                                         | 14,602                                             | -                                             | 131,249                                                                                                                                   | 13,626  |
| Total      other policy liabilities                                                       | 800,835                             | (243,631)                                             | -                                                         | 78,717                                             | -                                             | 635,921                                                                                                                                   | (221,570) |
|                                                                                      |                                     |                                                  |                                                           |                                                    |                                               |                                                                                                                                           |   |
| Derivative      instruments – payable                                               | 42,066                              | 5,864                                            | -                                                         | -                                                  | -                                             | 47,930                                                                                                                                    | 5,864  |
|                                                                                      |                                     |                                                  |                                                           |                                                    |                                               |                                                                                                                                           |   |
| Total      liabilities measured at fair value         on a recurring basis | $   842,901          | $      (237,767)                                      | $         -  | $       78,717  | $       -  | $  683,851                                                                                                                      | $      (215,706) |

----

| Assets                                                                              | Beginningbalance                         | Total      realized andunrealized      gains (losses) |   | Purchases,issuances,      andsettlements(net) |   | Transfers      inand/or      outof      level 3 (1) | Endingbalance |          | Change      inunrealized      gains(losses)      included inearnings      relatingto      instruments stillheld      at thereporting      date |
|-------------------------------------------------------------------------------------|------------------------------------------|-------------------------------------------------------|--------|-----------------------------------------------|--------|-----------------------------------------------------|---------------|---------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| Included      inearnings                                                            | Included      inothercomprehensiveincome |
| Available-for-sale      fixed maturities                                            |                                     |                                                  |   |                                          |   |                                                |          |          |                                                                                                                                           |   |   |   |   |   |   |
| Asset-backed      and mortgage-backedsecurities                                     | $                                        | 4,330                                            | $      | (480)                     | $      | (666)                                               | $             | -        | $                                                                                                                                              | 2,717  | $ | 5,901   | $ | -  |   |
| Foreign      government                                                             |                                     | -                                                |   | -                                   |   | -                                              |          | -        |                                                                                                                                           | -  |   | -   |   | -  |   |
| States      and political subdivisions                                              |                                     | -                                                |   | -                                   |   | -                                              |          | -        |                                                                                                                                           | -  |   | -   |   | -  |   |
| U.S.      treasury and agency securities                                            |                                     | -                                                |   | -                                        |   | -                                              |          | -        |                                                                                                                                           | -  |   | -   |   | -  |   |
| Corporate      securities                                                           |                                     | 9,039                                            |   | 902                       |   | (4,102)                                             |          | (900)         |                                                                                                                                           | 4,336  |   | 9,275   |   | -  |   |
| Total      available-for-sale fixed maturities                                      |                                     | 13,369                                           |   | 422                       |   | (4,768)                                             |          | (900)         |                                                                                                                                           | 7,053  |   | 15,176   |   | -  |   |
|                                                                                |                                     |                                                  |   |                                          |   |                                                |          |          |                                                                                                                                           |   |   |   |   |   |   |
| Trading      fixed maturities                                                       |                                     |                                                  |   |                                          |   |                                                |          |          |                                                                                                                                           |   |   |   |   |   |   |
| Asset-backed      and mortgage-backedsecurities                                     |                                     | 1,085,287                                        |   | (380,557)                                |   | -                                              |          | (3,916)  |                                                                                                                                           | 150,814  |   | 851,628   |   | (348,594) |   |
| Foreign      governments                                                            |                                     | 63,331                                           |   | (823)                     |   | -                                              |          | 518      |                                                                                                                                           | (22,975) |   | 40,051   |   | (823) |   |
| States      and political subdivisions                                              |                                     | -                                                |   | -                                        |   | -                                              |          | -        |                                                                                                                                           | -  |   | -   |   | -  |   |
| U.S.      treasury and agency securities                                            |                                     | -                                                |   | -                                        |   | -                                              |          | -        |                                                                                                                                           | -  |   | -   |   | -  |   |
| Corporate      securities                                                           |                                     | 134,446                                          |   | (44,009)                  |   | -                                              |          | (11,180)      |                                                                                                                                           | 284,221  |   | 363,478   |   | (19,485) |   |
| Total      trading fixed maturities                                                 |                                     | 1,283,064                                        |   | (425,389)                                |   | -                                              |          | (14,578)      |                                                                                                                                           | 412,060  |   | 1,255,157   |   | (368,902) |   |
|                                                                                |                                     |                                                  |   |                                          |   |                                                |          |          |                                                                                                                                           |   |   |   |   |   |   |
| Derivative      instruments – receivable                                      |                                     | 24,073                                           |   | 2,251                     |   | -                                              |          | (24,286)      |                                                                                                                                           | 363  |   | 2,401   |   | 2,251  |   |
| Other      invested assets                                                          |                                     | -                                                |   | -                                        |   | -                                              |          | -        |                                                                                                                                           | -  |   | -   |   | -  |   |
| Cash      and cash equivalents                                                      |                                     | -                                                |   | -                                        |   | -                                              |          | -        |                                                                                                                                           | -  |   | -   |   | -  |   |
| Total      investments and cash                                                     |                                     | 1,320,506                                        |   | (422,716)                                |   | (4,768)                                             |          | (39,764)      |                                                                                                                                           | 419,476  |   | 1,272,734   |   | (366,651) |   |
|                                                                                |                                     |                                                  |   |                                          |   |                                                |          |          |                                                                                                                                           |   |   |   |   |   |   |
| Other      assets                                                                   |                                     |                                                  |   |                                          |   |                                                |          |          |                                                                                                                                           |   |   |   |   |   |   |
| Separate      account assets (2)                                                    |                                     | 1,752,495                                        |   | (216,544)                                |   | -                                              |          | (183,900)     |                                                                                                                                           | (274,517) |   | 1,077,534   |   | (220,945) |   |
|                                                                                |                                     |                                                  |   |                                          |   |                                                |          |          |                                                                                                                                           |   |   |   |   |   |   |
| Total      assets measured at fair value on        a recurring basis | $                                        | 3,073,001                                        | $      | (639,260)                                | $      | (4,768)                                             | $             | (223,664)     | $                                                                                                                                              | 144,959  | $ | 2,350,268   | $ | (587,596) |   |

----

| Liabilities                                                                         | Beginningbalance                            | Total      realized and unrealized(gains)      losses  | Purchases,issuances,      andsettlements      (net)                                                                                    | Transfers      inand/or      outof      level 3                                             | Endingbalance                                                                                            | Change      inunrealized      (gains)losses      included inearnings      relatingto      instruments stillheld      at thereporting      date |
|-------------------------------------------------------------------------------------|---------------------------------------------|--------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| Included      inearnings                                                            | Included      inothercomprehensiveincome    |
|                                                                                |                                        |                                                   |                                                                                                                                   |                                                                                        |                                                                                                     |                                                                                                                                           |   |
| Other      policy liabilities                                                       |                                        |                                                   |                                                                                                                                   |                                                                                        |                                                                                                     |                                                                                                                                           |   |
| Guaranteed      minimum withdrawalbenefit      liability                            | $     10,151  | $     75,376             | $                     -  | $             20,499  | $                -  | $  106,026                                                                                                                      | $                  75,911  |
| Guaranteed      minimum accumulationbenefit      liability                          | 22,649                                 | 98,196                                            | -                                                                                                                                 | 17,227                                                                                 | -                                                                                                   | 138,072                                                                                                                                   | 98,941  |
| Derivatives      embedded in reinsurancecontracts                                   | -                                      | -                                                 | -                                                                                                                                 | -                                                                                      | -                                                                                                   | -                                                                                                                                         | -  |
| Fixed      index annuities                                                          | 392,017                                | (204,525)                                              | -                                                                                                                                 | (15,224)                                                                                    | -                                                                                                   | 172,268                                                                                                                                   | (165,882) |
| Total      other policy liabilities                                                 | 424,817                                | (30,953)                                               | -                                                                                                                                 | 22,502                                                                                 | -                                                                                                   | 416,366                                                                                                                                   | 8,970 |
|                                                                                |                                        |                                                   |                                                                                                                                   |                                                                                        |                                                                                                     |                                                                                                                                           |   |
| Derivative      instruments – payable                                         | 11,627                                 | 35,982                                            | -                                                                                                                                 | -                                                                                      | -                                                                                                   | 47,609                                                                                                                                    | 35,982  |
|                                                                                |                                        |                                                   |                                                                                                                                   |                                                                                        |                                                                                                     |                                                                                                                                           |   |
| Total      liabilities measured at fair value        on a recurring basis | $   436,444             | $        5,029 | $                      - | $              22,502 | $                 - | $   463,975                                                                                                                     | $                  44,952  |

----

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

| (1)   | Transfers      in and/or (out) of Level 3 during the three-month period ended September      30, 2009 are primarily attributable to changes in the observability of      inputs used to price thesecurities. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | 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      outof      level 3   | Endingbalance                                                                          | Change      inunrealized      (gains)losses      included inearnings      relatingto      instruments stillheld      at thereporting      date |
|-------------------------------------------------------------------------------------|------------------------------------------|-------------------------------------------------------|----------------------------------------------------------------------------------------|---------------------------------------------------|----------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| Includedin      earnings                                                            | Included      inothercomprehensiveincome |
|                                                                                |                                     |                                                  |                                                                                   |                                              |                                                                                   |                                                                                                                                           |   |
| Other      policy liabilities                                                       |                                     |                                                  |                                                                                   |                                              |                                                                                   |                                                                                                                                           |   |
| Guaranteed      minimum withdrawalbenefit      liability                            | $  280,489                | $    21,784                  | $             -  | $      21,135  | $             -  | $   323,408                                                                                                                | $         25,327  |
| Guaranteed      minimum accumulationbenefit      liability                          | 197,789                             | (22,488)                                              | -                                                                                 | 5,963                                        | -                                                                                 | 181,264                                                                                                                                   | (20,539) |
| Derivatives      embedded in reinsurancecontracts                                   | -                                   | -                                                | -                                                                                 | -                                            | -                                                                                 | -                                                                                                                                              | -  |
| Fixed      index annuities                                                          | 102,791                             | 11,179                                           | -                                                                                 | 17,279                                       | -                                                                                 | 131,249                                                                                                                                   | 17,708  |
| Total      other policy liabilities                                                 | 581,069                             | 10,475                                           | -                                                                                 | 44,377                                       | -                                                                                 | 635,921                                                                                                                                   | 22,496  |
|                                                                                |                                     |                                                  |                                                                                   |                                              |                                                                                   |                                                                                                                                           |   |
| Derivative      instruments – payable                                         | 46,196                              | 1,734                                                 | -                                                                                 | -                                            | -                                                                                 | 47,930                                                                                                                                         | 1,734  |
|                                                                                |                                     |                                                  |                                                                                   |                                              |                                                                                   |                                                                                                                                           |   |
| Total      liabilities measured at fair value on        a recurring basis | $  627,265                | $    12,209                  | $             -  | $      44,377  | $             -  | $   683,851                                                                                                                | $         24,230  |

----

| Assets                                                                              | Beginningbalance                         | Total      realized andunrealized      gains (losses) | Purchases,issuances,      andsettlements(net) | Transfers      inand/or      outof      level 3 (1) | Endingbalance | Change      inunrealized      gains(losses)      included inearnings      relatingto      instruments stillheld      at thereporting      date |
|-------------------------------------------------------------------------------------|------------------------------------------|-------------------------------------------------------|-----------------------------------------------|-----------------------------------------------------|---------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| Includedinearnings                                                                  | Included      inothercomprehensiveincome |
| Available-for-sale      fixed maturities                                            |                                     |                                                  |                                          |                                                |          |                                                                                                                                           |   |   |   |   |   |   |   |   |
| Asset-backed      and mortgage-backed        securities                   | $                                        | 6,237                                  | $                                             | (32)                                 | $             | (304)                                                                                                                                          | $ | -  | $ | -  | $ | 5,901  | $ | -  |
| Foreign      government                                                             |                                     | -                                                |                                          | -                                              |          | -                                                                                                                                         |   | -  |   | -  |   | -  |   | -  |
| States      and political subdivisions                                              |                                     | -                                                |                                          | -                                              |          | -                                                                                                                                         |   | -  |   | -  |   | -  |   | -  |
| U.S.      treasury and agency securities                                            |                                     | -                                                |                                          | -                                              |          | -                                                                                                                                         |   | -  |   | -  |   | -  |   | -  |
| Corporate      securities                                                           |                                     | 2,112                                  |                                     | 663                                  |          | (2,848)                                                                                                                                        |   | (306) |   | 9,654  |   | 9,275  |   | -  |
| Total      available-for-sale fixed maturities                                      |                                     | 8,349                                  |                                          | 631                                  |          | (3,152)                                                                                                                                        |   | (306) |   | 9,654  |   | 15,176  |   | -  |
|                                                                                |                                     |                                                  |                                          |                                                |          |                                                                                                                                           |   |   |   |   |   |   |   |   |
| Trading      fixed maturities                                                       |                                     |                                                  |                                          |                                                |          |                                                                                                                                           |   |   |   |   |   |   |   |   |
| Asset-backed      and mortgage-backed        securities                   |                                     | 955,993                                          |                                          | (169,902)                                           |          | -                                                                                                                                         |   | (1,597)  |   | 67,134  |   | 851,628  |   | (133,937) |
| Foreign      governments                                                            |                                     | 51,488                                 |                                          | (736)                                |          | -                                                                                                                                         |   | -  |   | (10,701) |   | 40,051  |   | (448) |
| States      and political subdivisions                                              |                                     | -                                                |                                          | -                                              |          | -                                                                                                                                         |   | -  |   | -  |   | -  |   | -  |
| U.S.      treasury and agency securities                                            |                                     | -                                                |                                          | -                                              |          | -                                                                                                                                         |   | -  |   | -  |   | -  |   | -  |
| Corporate      securities                                                           |                                     | 30,342                                      |                                          | (31,617)                                            |          | -                                                                                                                                         |   | (1,173) |   | 365,926  |   | 363,478  |   | (10,572) |
| Total      trading fixed maturities                                                 |                                     | 1,037,823                                             |                                          | (202,255)                                           |          | -                                                                                                                                         |   | (2,770)  |   | 422,359  |   | 1,255,157 |   | (144,957) |
|                                                                                |                                     |                                                  |                                          |                                                |          |                                                                                                                                           |   |   |   |   |   |   |   |   |
| Derivative      instruments – receivable                                      |                                     | 2,962                                       |                                          | (564)                                |          | -                                                                                                                                         |   | 3  |   | -  |   | 2,401  |   | (564)  |
| Other      invested assets                                                          |                                     | -                                                |                                          | -                                              |          | -                                                                                                                                         |   | -  |   | -  |   | -  |   | -  |
| Cash      and cash equivalents                                                      |                                     | -                                                |                                          | -                                              |          | -                                                                                                                                         |   | -  |   | -  |   | -  |   | -  |
| Total      investments and cash                                                     |                                     | 1,049,134                                        |                                          | (202,188)                                           |          | (3,152)                                                                                                                                        |   | (3,073)  |   | 432,013  |   | 1,272,734 |   | (145,521) |
|                                                                                |                                     |                                                  |                                          |                                                |          |                                                                                                                                           |   |   |   |   |   |   |   |   |
| Other      assets                                                                   |                                     |                                                  |                                          |                                                |          |                                                                                                                                           |   |   |   |   |   |   |   |   |
| Separate      account assets (2)                                                    |                                     | 1,168,305                                        |                                          | (57,106)                                            |          | -                                                                                                                                         |   | (101,374) |   | 67,709  |   | 1,077,534  |   | (63,717) |
|                                                                                |                                     |                                                  |                                          |                                                |          |                                                                                                                                           |   |   |   |   |   |   |   |   |
| Total      assets measured at fair value on        a recurring basis | $                                        | 2,217,439                                        | $                                             | (259,294)                                      | $             | (3,152)                                                                                                                                        | $ | (104,447)  | $ | 499,722  | $ | 2,350,268  | $ | (209,238)  |

----

| Liabilities                                                            | Beginningbalance                            | Total      realized and unrealized(gains)      losses | Purchases,issuances,      andsettlements      (net)                                                                                    | Transfers      inand/or      outof      level 3                                                        | Endingbalance                                                                                            | Change      inunrealized      (gains)losses      included inearnings      relatingto      instruments stillheld      at thereporting      date |
|------------------------------------------------------------------------|---------------------------------------------|-------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| Includedin      earnings                                               | Included      inothercomprehensiveincome    |
|                                                                   |                                        |                                                  |                                                                                                                                   |                                                                                                   |                                                                                                     |                                                                                                                                           |   |
| Other      policy liabilities                                          |                                        |                                                  |                                                                                                                                   |                                                                                                   |                                                                                                     |                                                                                                                                           |   |
| Guaranteed      minimum withdrawalbenefit      liability               | $     50,569  | $     47,789            | $                     -  | $               7,668  | $                 - | $   106,026                                                                                                                | $                  48,150  |
| Guaranteed      minimum accumulationbenefit      liability             | 78,364                                 | 54,215                                           | -                                                                                                                                 | 5,493                                                                                             | -                                                                                                   | 138,072                                                                                                                                   | 54,710  |
| Derivatives      embedded in reinsurancecontracts                      | -                                      | -                                                     | -                                                                                                                                      | -                                                                                                      | -                                                                                                        | -                                                                                                                                              | - |
| Fixed      index annuities                                             | 218,401                                | (26,220)                                              | -                                                                                                                                 | (19,913)                                                                                          | -                                                                                                   | 172,268                                                                                                                                   | (12,501) |
| Total      other policy liabilities                                    | 347,334                                | 75,784                                           | -                                                                                                                                 | (6,752)                                                                                           | -                                                                                                   | 416,366                                                                                                                                   | 90,359  |
|                                                                   |                                        |                                                  |                                                                                                                                   |                                                                                                   |                                                                                                     |                                                                                                                                           |   |
| Derivative      instruments – payable                            | 16,450                                 | 31,159                                           | -                                                                                                                                 | -                                                                                                 | -                                                                                                   | 47,609                                                                                                                                    | 31,159  |
|                                                                   |                                        |                                                  |                                                                                                                                   |                                                                                                   |                                                                                                     |                                                                                                                                           |   |
| Total      liabilities measured at fair value ona      recurring basis | $   363,784             | $  106,943                        | $                     -  | $            (6,752)                  | $               -        | $    463,975                                                                                                               | $                121,518 |

----

----

|                                                   |                                                                                                |                                                                                                                 |                                                                                                                      |                                                                                                     |                                                                                                |
|--------------------------------------------------------|-----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|
|                                                   |                                                                                                |                                                                                                                 | Gross                                                                                                                     |                                                                                                     |                                                                                                |
| Available-for-sale      fixed maturities               | AmortizedCost                                                                                       | GrossUnrealizedGains                                                                                                 | UnrealizedTemporaryLosses                                                                                                 | OTTILosses(1)                                                                                            | FairValue                                                                                           |
|                                                   |                                                                                                |                                                                                                                 |                                                                                                                      |                                                                                                     |                                                                                                |
| Asset-backed      securities                           | $                68 | $                   - | $                (23)                     | $                -  | $                45 |
| Collateralized      mortgage obligations               |            1,936                             |              81                                     |                    -  |                -         |         2,017                                               |
| Commercial      mortgage-backed securities             | 19,058                                                                                              | 178                                                                                                                  | (2,865)                                                                                                                   | -                                                                                                   | 16,371                                                                                              |
| Foreign      government & agency securities        | 509                                                                                                 | 39                                                                                                                   | -                                                                                                                    | -                                                                                                   | 548                                                                                                 |
| U.S.      states and political subdivisions securities | -                                                                                                   | -                                                                                                                    | -                                                                                                                    | -                                                                                                   | -                                                                                                   |
| U.S.      treasury and agency securities               | 85,351                                                                                              | 6,194                                                                                                                | (2)                                                                                                                       | -                                                                                                   | 91,543                                                                                              |
| Total      non-corporate                               | 106,922                                                                                             | 6,492                                                                                                                | (2,890)                                                                                                                   | -                                                                                                   | 110,524                                                                                             |
|                                                   |                                                                                                |                                                                                                                 |                                                                                                                      |                                                                                                     |                                                                                                |
| Corporate      securities                              | 1,078,891                                                                                           | 91,617                                                                                                               | (29,010)                                                                                                                  | (13,900)                                                                                                 | 1,127,598                                                                                           |
|                                                   |                                                                                                |                                                                                                                 |                                                                                                                      |                                                                                                     |                                                                                                |
| Total      available-for-sale fixed maturities         | $    1,185,813                                                                  | $        98,109                                                              | $         (31,900)                                                           | $     (13,900)                                                                  | $    1,238,122                                                                  |
|                                                   |                                                                                                |                                                                                                                 |                                                                                                                      |                                                                                                     |                                                                                                |
|                                                   |                                                                                                |                                                                                                                 | Gross                                                                                                                     |                                                                                                     |                                                                                                |
| Trading      fixed maturities                          | AmortizedCost                                                                                       | GrossUnrealizedGains                                                                                                 | UnrealizedTemporaryLosses                                                                                                 | FairValue                                                                                                |                                                                                                |
|                                                   |                                                                                                |                                                                                                                 |                                                                                                                      |                                                                                                     |                                                                                                |
| Asset-backed      securities                           | $       720,434                                                  | $           8,819                                             | $       (220,363)                                                                      | $      508,890                                              |                                                                                                |
| Collateralized      mortgage obligations               |     1,343,249                                                                   |            5,853                                              |        (447,033)                                                                       | 902,069                                                                                                  |                                                                                                |
| Commercial      mortgage-backed securities             | 1,041,289                                                                                           | 19,983                                                                                                               | (420,137)                                                                                                                 | 641,135                                                                                                  |                                                                                                |
| Foreign      government & agency securities        | 77,353                                                                                              | 6,641                                                                                                                | -                                                                                                                    | 83,994                                                                                                   |                                                                                                |
| U.S.      states and political subdivisions securities | -                                                                                                   | -                                                                                                                    | -                                                                                                                    | -                                                                                                        |                                                                                                |
| U.S.      treasury and agency securities               | 896,315                                                                                             | 25,356                                                                                                               | (12,216)                                                                                                                  | 909,455                                                                                                  |                                                                                                |
| Total      non-corporate                               | 4,078,640                                                                                           | 66,652                                                                                                               | (1,099,749)                                                                                                               | 3,045,543                                                                                                |                                                                                                |
|                                                   |                                                                                                |                                                                                                                 |                                                                                                                      |                                                                                                     |                                                                                                |
| Corporate      securities                              | 9,815,056                                                                                           | 366,172                                                                                                              | (445,393)                                                                                                                 | 9,735,835                                                                                                |                                                                                                |
|                                                   |                                                                                                |                                                                                                                 |                                                                                                                      |                                                                                                     |                                                                                                |
| Total      trading fixed maturities                    | $      13,893,696                                                                                   | $       432,824                                                                   | $    (1,545,142)                                                                                      | $12,781,378                                                                                              |                                                                                                |

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

----

|                                            |                                                                                               |                                                                              | Gross                                                                      |                                                                            |
|-------------------------------------------------|----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|----------------------------------------------------------------------------|---------------------------------------------------------------------------------|
|                                            |                                                                                               | Gross                                                                             | Unrealized                                                                 |                                                                            |
|                                            | Amortized                                                                                          | Unrealized                                                                        | Temporary                                                                  | Fair                                                                            |
| Available-for-sale      fixed maturities        | Cost                                                                                               | Gains                                                                             | Losses                                                                     | Value                                                                           |
|                                            |                                                                                               |                                                                              |                                                                       |                                                                            |
| Collateralized      mortgage obligations        | $              22,504        | $             94 | $           (4,489) | $            18,109 |
| Mortgage-backed      securities                 | 40,107                                                                                             | 1,060                                                                             | (17)                                                                       | 41,150                                                                          |
| Foreign      government & agency securities | 509                                                                                                | -                                                                                 | (37)                                                                       | 472                                                                             |
| U.S.      treasury & agency securities      | 61,824                                                                                             | 13,262                                                                            | (105)                                                                      | 74,981                                                                          |
| Total      non-corporate                        | 124,944                                                                                            | 14,416                                                                            | (4,648)                                                                    | 134,712                                                                         |
|                                            |                                                                                               |                                                                              |                                                                       |                                                                            |
| Corporate      securities                       | 657,917                                                                                            | 4,475                                                                             | (123,084)                                                                  | 539,308                                                                         |
|                                            |                                                                                               |                                                                              |                                                                       |                                                                            |
| Total      available-for-sale fixed maturities  | $           782,861                         | $       18,891                                 | $        (127,732)                 | $           674,020      |
|                                            |                                                                                               |                                                                              |                                                                       |                                                                            |
|                                            |                                                                                               |                                                                              | Gross                                                                      |                                                                            |
|                                            |                                                                                               | Gross                                                                             | Unrealized                                                                 |                                                                            |
|                                            | Amortized                                                                                          | Unrealized                                                                        | Temporary                                                                  | Fair                                                                            |
| Trading      fixed maturities                   | Cost                                                                                               | Gains                                                                             | Losses                                                                     | Value                                                                           |
|                                            |                                                                                               |                                                                              |                                                                       |                                                                            |
| Asset-backed      securities                    | $               796,032 | $        4,357                            | $         (294,557)           | $          505,832            |
| Collateralized      mortgage obligations        | 2,627,715                                                                                          | 8,543                                                                             | (1,141,245)                                                                | 1,495,013                                                                       |
| Mortgage-backed      securities                 | 213,175                                                                                            | 4,579                                                                             | (325)                                                                      | 217,429                                                                         |
| Foreign      government & agency securities | 110,991                                                                                            | 1,972                                                                             | (3,788)                                                                    | 109,175                                                                         |
| U.S.      treasury & agency securities      | 484,910                                                                                            | 36,528                                                                            | (18,332)                                                                   | 503,106                                                                         |
| Total      non-corporate                        | 4,232,823                                                                                          | 55,979                                                                            | (1,458,247)                                                                | 2,830,555                                                                       |
|                                            |                                                                                               |                                                                              |                                                                       |                                                                            |
| Corporate      securities                       | 10,676,606                                                                                         | 38,976                                                                            | (1,783,991)                                                                | 8,931,591                                                                       |
|                                            |                                                                                               |                                                                              |                                                                       |                                                                            |
| Total      trading fixed maturities             | $         14,909,429                                  |  $      94,955                                 |  $     (3,242,238)                           |  $     11,762,146                                 |

----

| (in      000’s)                                                                                                               |                                                         |                                                                                                                                  |                                                                                                                                              |                |
|-------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|
|                                                                                                                                |                                                         |                                                                                                                                  |                                                                                                                                              | Amortized      Cost | Fair      Value |
| Maturities      of available-for-sale fixed securities:                                                                             |                                                         |                                                                                                                                  |
|                                                                                                                                | Due      in one year or less                                 |  $                    41,754 | $                       44,945 |
|                                                                                                                                | Due      after one year through five years                   | 292,682                                                                                                                               | 331,610                                                                                                                                           |
|                                                                                                                                | Due      after five years through ten years                  | 211,962                                                                                                                               | 231,435                                                                                                                                           |
|                                                                                                                                | Due      after ten years                                     |                                                                                                                                  |                                                                                                                                              | 571,256             | 562,304 |
|           Subtotal      – Maturities of available-for-sale fixed securities |                                                         | 1,117,654                                                                                                                             | 1,170,294                                                                                                                                         |
| ABS,      CMO, and MBS securities                                                                                                   |                                                         | 68,159                                                                                                                                | 67,828                                                                                                                                            |
|           Total      available-for-sale fixed securities                          |                                                         | $               1,185,813                                  | $                  1,238,122                            |
|                                                                                                                                |                                                         |                                                                                                                                  |                                                                                                                                              |
| Maturities      of trading fixed securities:                                                                                        |                                                         |                                                                                                                                  |
|                                                                                                                                | Due      in one year or less                                 | $                   359,638            | $                    362,044                  |
|                                                                                                                                | Due      after one year through five years                   | 4,817,056                                                                                                                             | 4,893,496                                                                                                                                         |
|                                                                                                                                | Due      after five years through ten years                  | 3,153,739                                                                                                                             | 3,111,467                                                                                                                                         |
|                                                                                                                                | Due      after ten years                                     | 2,207,949                                                                                                                             | 2,099,221                                                                                                                                         |
|                                                                                                                                | Subtotal      – Maturities of trading fixed securities | 10,538,382                                                                                                                            | 10,466,228                                                                                                                                        |
| ABS,      CMO and MBS securities                                                                                                    | 3,355,314                                                    | 2,315,150                                                                                                                             |
|                                                                                                                                | Total      trading fixed securities                          | $             13,893,696                                             | $               12,781,378                                             |

----

|                                       |  Less      Than Twelve Months                |  Twelve      Months Or More |  Total                |
|--------------------------------------------|---------------------------------------------------|----------------------------------|----------------------------|
|                                       |                                              |                             |                       |   |   |   |
|                                       | FairValue                                         | GrossUnrealizedLosses            | FairValue                  | GrossUnrealizedLosses | FairValue | GrossUnrealizedLosses |
|                                       |                                              |                             |                       |   |   |   |
| Corporate      securities                  | $       62,947 | $  (4,934)             | $   245,410 | $   (37,976) | $  308,357 | $     (42,910) |
| Asset-backed      securities               | -                                                 | -                                | 46                         | (23) | 46 | (23) |
| Commercial      mortgage-backed securities | 915                                               | (570)                            | 5,849                      | (2,295) | 6,764 | (2,865) |
| U.S.      treasury & agency securities | -                                                 | -                                | 219                        | (2) | 219 | (2) |
|                                       |                                              |                             |                       |   |   |   |
|  Total                                | $       63,862 | $  (5,504)             | $  251,524       | $  (40,296) | $  315,386 | $    (45,800) |

|                                            |  Less      Than Twelve Months |  Twelve      Months Or More  |  Total                            |
|-------------------------------------------------|------------------------------------|-----------------------------------|----------------------------------------|
|                                            |                               |                              |                                   |   |   |   |
|                                            | FairValue                          | GrossUnrealizedLosses             | FairValue                              | GrossUnrealizedLosses | FairValue | GrossUnrealizedLosses |
|                                            |                               |                              |                                   |   |   |   |
| Corporate      securities                       | $    213,657   | $    (37,430) | $    226,295       | $      (85,654) | $  439,952 | $     (123,084) |
| Collateralized      mortgage obligations        | 2,967                              | (1,162)                           | 12,739                                 | (3,327) | 15,706 | (4,489) |
| Mortgage-backed      securities                 | 1,054                              | (7)                               | 3,137                                  | (10) | 4,191 | (17) |
| U.S.      treasury & agency securities      | 1,855                              | (105)                             | -                                 | -  | 1,855 | (105) |
| Foreign      government & agency securities | 473                                | (37)                              | -                                 | -  | 473 | (37) |
|                                            |                               |                              |                                   |   |   |   |
| Total                                           | $    220,006   | $   (38,741)       | $     242,171 | $       (88,991) | $  462,177 | $     (127,732) |

----

----

----

|                                                                                                       |   | Six-month      Period EndedSeptember      30, 2009(in      000’s) |
|------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|
|                                                                                                       |   |                                                                    |
| Beginning      balance                                                                                     | $      | -                                                                  |
| Add:      Credit losses remaining in accumulated deficit relatedto      the adoption of FASB ASC Topic 320 |   | 27,805                                                             |
| Add:      Credit losses on OTTI not previously recognized                                                  |   | 4,834                                                              |
| Less:      Credit losses on securities sold                                                                |   |  (5,031)                                                           |
| Less:      Credit losses on securities impaired due to intent tosell                                       |   |  -                                                            |
| Add:      Credit losses on previously impaired securities                                                  |   | -                                                                  |
| Less:      Increases in cash flows expected on previouslyimpaired      securities                          |   |  (686)                                                             |
| Ending      balance                                                                                        | $      | 26,922                                                             |

----

----

----

|                      | As      ofSeptember      30, 2009                                                         | As      ofDecember      31, 2008                                                                                                                |
|---------------------------|-------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                      | Number      of Contracts                                                                  | PrincipalNotional(in      000’s)                                                                                                          | Number      of Contracts | PrincipalNotional(in      000’s) |
|                      |                                                                                      |                                                                                                                                            |   |   |
| Interest      rate swaps  | 150                                                                                       |  $             9,789,100                                                  | 218 | $     14,036,100 |
| Currency      swaps       | 13                                                                                        |                    354,307                       | 14 |       408,773 |
| Credit      default swaps | 1                                                                                         |   55,000                                                                                                                              | 1 |         55,000 |
| Equity      swaps         | 2                                                                                         |                        4,908 | 2 |           4,908 |
| Swaptions                 | 5                                                                                         |                 1,150,000                                       | 5 |    1,150,000 |
| Futures                   |           (11,998)                      |                 2,164,648                                       | 927 |    1,991,840 |
| Index      call options   |           7,012                         |                 1,174,528                                       | 8,081 |    1,166,148 |
| Index      put options    |               8,300 |                  786,325                                   | 5,500 |      591,385 |
| Total                     |   3,485                                                                         | $           15,478,816                                                                   | 14,748 | $     19,404,154 |

----

|                            | At      September 30, 2009 |
|---------------------------------|----------------------------|
|                            | Asset      Derivatives     | Liability      Derivatives |
|                            |                       | Fair      Value (a) |   | Fair      Value (a) |
|                            |                       |   |   |   |
| Interest      rate contracts    |                       | $                  204,170 |   | $                728,372 |
| Foreign      currency contracts |                       | 57,639 |   | 535 |
| Equity      contracts           |                       | 72,530 |   | - |
| Credit      contracts           |                       | - |   | 47,930 |
| Futures      (b)                |                       | 3,155 |   | 1,286 |
| Derivative      instruments     |                       | 337,494 |   | 778,123 |
| Embedded      derivatives (c)   |                       | 14,638 |   | 663,608 |
| Total                           |                       | $                 352,132 |   | $             1,441,731 |

| (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. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

|                            |                                                                    |
|---------------------------------|-------------------------------------------------------------------------|
|                            |                Three-Month |               Nine-Month |
|                            |                                                                    | Period |   | Period |
|                            |                                                                    |   |   |   |
| Interest      rate contracts    |                                                                    | $                   (64,545) |   | $               223,086  |
| Foreign      currency contracts |                                                                    | (5,371) |   | (7,580) |
| Equity      contracts           |                                                                    | (16,867) |   | (58,355) |
| Credit      contracts           |                                                                    | (1,734) |   | (5,864) |
| Futures                         |                                                                    | (142,847) |   | (246,742) |
| Embedded      derivatives       |                                                                    | (73,082) |   | 92,599  |
| Total                           |                                                                    | $                (304,446) |   | $                 (2,856) |

----

----

|                        |                                                           |                                                                   | September      30, 2009                                                |            | December      31, 2008                                                       |
|-----------------------------|----------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|-----------------|------------------------------------------------------------------------------|
|                        |                                                           |                                                                   | Carrying                                                               | Estimated       |                                                                         | Carrying | Estimated |
|                        |                                                           |                                                                   | Amount                                                                 | Fair      Value |                                                                         | Amount | Fair      Value |
| Financial      assets:      |                                                           |                                                                   |                                                                   |            |                                                                         |
|                        | Cash      and cash equivalents                                 | $         3,022,206  | $         3,022,206  |            | $           1,624,149 | $           1,624,149 |
|                        | Fixed      maturities                                          | 14,019,500                                                        | 14,019,500                                                        |            | 12,436,166                                                                   | 12,436,166 |
|                        | Mortgages                                                      | 1,975,462                                                         | 1,949,700                                                         |            | 2,083,003                                                                    | 2,083,089 |
|                        | Derivative      instruments -receivables                       | 337,494                                                           | 337,494                                                           |            | 727,103                                                                      | 727,103 |
|                        | Policy      loans                                              | 719,428                                                           | 852,626                                                           |            | 729,407                                                                      | 768,658 |
|                        | Other      invested assets                                     | 11,737                                                            | 12,659                                                            |            | 179,945                                                                      | 179,945 |
|                        | Separate      accounts                                         | 21,780,876                                                        | 21,780,876                                                        |            | 20,531,724                                                                   | 20,531,724 |
|                        |                                                           |                                                                   |                                                                   |            |                                                                         |   |
| Financial      liabilities: |                                                           |                                                                   |                                                                   |            |                                                                         |
|                        | Contractholder      deposit funds and other policy liabilities | 14,519,935                                                        | 13,458,507                                                        |            | 14,292,665                                                                   | 13,256,964 |
|                        | Derivative      instruments - payables                         | 778,123                                                           | 778,123                                                           |            | 1,494,341                                                                    | 1,494,341 |
|                        | Long-term      debt to affiliates                              | 2,098,000                                                         | 2,098,000                                                         |            | 1,998,000                                                                    | 1,998,000 |
|                        | Other      liabilities                                         | 42,856                                                            | 42,856                                                            |            | 87,534                                                                       | 87,534 |
|                        | Separate      accounts                                         | 21,780,876                                                        | 21,780,876                                                        |            | 20,531,724                                                                   | 20,531,724 |

----

----

----

|                                                                      | September      30, |            | December      31, |
|---------------------------------------------------------------------------|--------------------|-----------------|-------------------|
|                                                                      | 2009               |            | 2008              |
| AssetsReinsurance      receivable                                         |  $            |  1,534,679 |              |  $ |  1,560,946 |
| Other      assets                                                         |               | -               |              |   | 38,998 |
|                                                                      |               |            |              |   |   |
| LiabilitiesContractholder      deposit funds and other policy liabilities |               | 1,496,501       |              |   | 1,428,331 |
| Reinsurance      payable                                                  |               | 1,557,164       |              |   | 1,509,989 |

----

|                                                                      | September      30, |          |   |
|---------------------------------------------------------------------------|--------------------|---------------|--------|
|                                                                      | 2009               |          |   |
| AssetsReinsurance      receivable                                         |  $            |  344,917 |   |   |   |
|                                                                      |               |          |   |   |   |
| LiabilitiesContractholder      deposit funds and other policy liabilities |               | 385,118       |   |   |   |
| Reinsurance      payable                                                  |               | 373,199       |   |   |   |
|                                                                      |               |          |   |   |   |

----

|                                                                      | September      30, |          | December      31, |
|---------------------------------------------------------------------------|--------------------|---------------|-------------------|
|                                                                      | 2009               |          | 2008              |
| AssetsDeferred      policy acquisition costs                              |  $            |  104,514 |              |  $ |  73,958 |
| Reinsurance      receivable                                               |               | 949,679       |              |   | 1,125,408 |
|                                                                      |               |          |              |   |   |
| LiabilitiesContractholder      deposit funds and other policy liabilities |               |  775,732 |              |   |  813,387 |
| Future      contract and policy benefits                                  |               | 101,972       |              |   | 73,058 |
| Reinsurance      payable                                                  |               | 1,017         |              |   | - |
| Other      liabilities                                                    |               | 88,946        |              |   | 21,529 |

----

|                                                                      | September      30, |          | December      31, |
|---------------------------------------------------------------------------|--------------------|---------------|-------------------|
|                                                                      | 2009               |          | 2008              |
| AssetsReinsurance      receivable                                         |  $            |  110,150 |              |  $ |  77,628 |
| Other      assets                                                         |               | -             |              |   | 2,676 |
|                                                                      |               |          |              |   |   |
| LiabilitiesContractholder      deposit funds and other policy liabilities |               |  76,114  |              |   |  63,210 |
| Future      contract and policy benefits                                  |               | 9,784         |              |   | 3,162 |
| Reinsurance      payable to affiliate                                     |               | 171,340       |              |   | 140,832 |
| Other      liabilities                                                    |               | -             |              |   | 1,057 |

----

----

|                                                                                         | 2009                                                                                                                           | 2008                                                                                                                                 |
|----------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                         | Pension      Plans                                                                                                             | Other      BenefitPlan                                                                                                               | Pension      Plans | Other      BenefitPlan |
|                                                                                         |                                                                                                                           |                                                                                                                                 |   |   |
| Components of net      periodic pension cost (benefit):                                      |                                                                                                                           |                                                                                                                                 |   |   |
| Service      cost                                                                            | $                   1,948  | $                    1,315  | $                    2,640  | $                   1,212 |
| Interest      cost                                                                           | 13,075                                                                                                                    | 2,414                                                                                                                           | 12,462 | 2,499 |
| Expected      return on plan assets                                                          | (11,259)                                                                                                                       | -                                                                                                                               | (17,229) | - |
| Amortization      of transition obligation asset                                             | (1,570)                                                                                                                        | -                                                                                                                               | (1,569) | - |
| Amortization      of prior service cost (credit)                                             | 253                                                                                                                       | (397)                                                                                                                                | 252 | (396) |
| Recognized      net actuarial losses (gains)                                                 | 2,087                                                                                                                     | 286                                                                                                                             | (594) | 686  |
| Net      periodic pension cost (benefit)                                                     | $               4,534                          | $                   3,618        | $               (4,038) | $                 4,001 |
| The      Company’s share of net periodic pension cost         (benefit) | $               4,534                          | $                   2,930        | $               (4,038) | $                      3,480 |

----

|                                                                 | 2009                                                                                                                                     | 2008                                                                                                                         |
|----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|
|                                                                 | Pension      Plans                                                                                                                       | Other      BenefitPlan                                                                                                       | Pension      Plans | Other      BenefitPlan |
|                                                                 |                                                                                                                                     |                                                                                                                         |   |   |
| Components of net      periodic pension cost (benefit):              |                                                                                                                                     |                                                                                                                         |   |   |
| Service      cost                                                    | $                     649  | $                    438 | $                  880 | $                    404 |
| Interest      cost                                                   | 4,358                                                                                                                               | 805                                                                                                                          | 4,154 | 833 |
| Expected      return on plan assets                                  | (3,853)                                                                                                                                  | -                                                                                                                            | (5,743) | - |
| Amortization      of transition obligation asset                     | (523)                                                                                                                                    | -                                                                                                                            | (523) | - |
| Amortization      of prior service cost (credit)                     | 84                                                                                                                                  | (132)                                                                                                                        | 84 | (132) |
| Recognized      net actuarial losses (gains)                         | 696                                                                                                                                 | 95                                                                                                                           | (198) | 228 |
| Net      periodic pension cost (benefit)                             | $                 1,411                        | $                 1,206                 | $             (1,346) | $                1,333 |
| The      Company’s share of net periodic pension cost(benefit) | $                 1,411                        | $                    988 | $                  (1,346) | $                     1,160 |

----

| Benefit      Type                       | Account      Balance                                                                                                       | Net      Amountat      Risk 1                                                                                                         | AverageAttained      Age                                                                                               |
|-----------------------------------------|----------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|
| Minimum      death                      | $           16,192,211                               | $           2,742,189                                           | 66.5                                                                                                                   |
| Minimum      income                     | $                199,499    |        $                95,095    |                    61.4 |
| Minimum      accumulation andwithdrawal | $             8,123,803                    | $              301,273                           | 63.1                                                                                                                   |

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

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

----

|                                                                  | GuaranteedMinimumDeath      Benefit                                                         |   | GuaranteedMinimumIncome      Benefit                                      |   | Total                                                                           |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|
| Balance      at December 31, 2007                                     | $             39,673  |   | $          4,817   |   | $           44,490  |
|                                                                  |                                                                                        |   |                                                                      |   |                                                                            |
| Benefit      ratio change /         Assumption changes | 87,189                                                                                 |   | 5,797                                                                |   | 92,986                                                                     |
| Incurred      guaranteed benefits                                     | 13,266                                                                                 |   | 781                                                                  |   | 14,047                                                                     |
| Paid      guaranteed benefits                                         | (31,523)                                                                                    |   | (1,303)                                                                   |   | (32,826)                                                                        |
| Interest                                                              | 3,983                                                                                  |   | 249                                                                  |   | 4,232                                                                      |
|                                                                  |                                                                                        |   |                                                                      |   |                                                                            |
| Balance      at September 30, 2008                                    | $            112,588       |   | $          10,341  |   | $        122,929                   |

----

----

----

|                                                                                                                                        | SLUSas      Parent |            | SLNY   |   | OtherSubs     |   | Elimination |          | ConsolidatedCompany |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------------------|-----------------|--------|--------|---------------|--------|-------------|---------------|---------------------|
|                                                                                                                                        |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Revenues                                                                                                                                    |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
|                                                                                                                                        |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Premiums      and annuity considerations                                                                                                    | $                  | 10,602     |   | $      | 90,410   |   | $           | -        |                | $ | -  |   | $ | 101,012  |
| Net      investment income (1)                                                                                                              |               | 2,049,633  |   |   | 208,693  |   |        | 99,673   |                |   | -  |   |   | 2,357,999  |
| Net      derivative (loss) income                                                                                                           |               | (188,157)       |   |   | 5,278    |   |        | 180,023  |                |   | -  |   |   | (2,856) |
| Net      realized investment (losses) gains, excluding        impairment losses on available-for-sale        securities |               | (7,677)         |   |   | 3        |   |        | (727)         |                |   | -  |   |   | (8,401) |
| Other-than-temporary      impairment losses (2)                                                                                             |               | (4,450)         |   |   | (181)         |   |        | (203)         |                |   | -  |   |   | (4,834) |
| Fee      and other income                                                                                                                   |               | 279,960    |   |   | 6,034    |   |        | 16,748   |                |   | -  |   |   | 302,742  |
|                                                                                                                                        |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Total      revenues                                                                                                                         |               | 2,139,911  |   |   | 310,237  |   |        | 295,514  |                |   | -  |   |   | 2,745,662  |
|                                                                                                                                        |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Benefits      and Expenses                                                                                                                  |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
|                                                                                                                                        |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Interest      credited                                                                                                                      |               | 255,942    |   |   | 35,261   |   |        | 26,352   |                |   | -  |   |   | 317,555  |
| Interest      expense                                                                                                                       |               | 33,212     |   |   | 769      |   |        | 18,029   |                |   | -  |   |   | 52,010  |
| Policyowner      benefits                                                                                                                   |               | 26,799     |   |   | 59,611   |   |        | 31,650   |                |   | -  |   |   | 118,060  |
| Amortization      of DAC, VOBA and VOCRA                                                                                                    |               | 434,372    |   |   | 85,696   |   |        | (4,889)       |                |   | -  |   |   | 515,179  |
| Other      operating expenses                                                                                                               |               | 137,788    |   |   | 34,162   |   |        | 11,622   |                |   | -  |   |   | 183,572  |
|                                                                                                                                        |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Total      benefits and expenses                                                                                                            |               | 888,113    |   |   | 215,499  |   |        | 82,764   |                |   | -  |   |   | 1,186,376  |
|                                                                                                                                        |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Income      before income tax expense                                                                                                       |               | 1,251,798  |   |   | 94,738   |   |        | 212,750  |                |   | -  |   |   | 1,559,286  |
|                                                                                                                                        |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Income      tax expense                                                                                                                     |               | 359,512    |   |   | 27,500   |   |        | 63,677   |                |   | -  |   |   | 450,689  |
| Equity      in the net income of subsidiaries                                                                                               |               | 216,311    |   |   | -        |   |        | -        |                |   | (216,311) |   |   | -  |
|                                                                                                                                        |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Net      income                                                                                                                             | $                  | 1,108,597  |   | $      | 67,238   |   | $           | 149,073  |                | $ | (216,311) |   | $ | 1,108,597  |

| (1)   | SLUS’,      SLNY’s and Other Subs’ net investment income includes an increase in      market value of trading fixed maturity securities of $1,724.4 million,      $168.9 million and $151.6 million, respectively, for the nine-month period      ended September 30, 2009. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | SLUS’,      SLNY’s and Other Subs’ OTTI losses for the nine-month period ended      September 30, 2009 represent impairments related to credit      loss. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                    | SLUSas      Parent |                  | SLNY   |   | OtherSubs            |   | Elimination |                 | ConsolidatedCompany |
|-------------------------------------------------------------------------------------------------------------------------|--------------------|-----------------------|--------|--------|----------------------|--------|-------------|----------------------|---------------------|
|                                                                                                                    |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Revenues                                                                                                                |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
|                                                                                                                    |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Premiums      and annuity considerations                                                                                | $                  | 12,131                |   | $      | 78,430          |   | $           | -               |                | $ | -  |   | $ | 90,561  |
| Net      investment loss  (1)                                                                                 |               | (779,714)             |   |   | (43,159)             |   |        | (38,055)             |                |   | -  |   |   | (860,928) |
| Net      derivative loss  (2)                                                                                 |               | (181,756)             |   |   | (7,533)              |   |        | (83,759)             |                |   | -  |   |   | (273,048) |
|          Net realized investment losses, excludingimpairment losses on      available-for-salesecurities |               |   (234,835) |   |   |   (29,099) |   |        |   (29,560) |                |   |   -  |   |   |   (293,494) |
| Other-than-temporary      impairment losses                                                                             |               | (11,278)              |   |   | (5,117)              |   |        | (1,869)              |                |   | -  |   |   | (18,264) |
| Fee      and other income                                                                                               |               | 341,421          |   |   | 8,655           |   |        | 29,923          |                |   | -  |   |   | 379,999  |
|                                                                                                                    |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Total      revenues                                                                                                     |               | (854,031)             |   |   | 2,177           |   |        | (123,320)            |                |   | -  |   |   | (975,174) |
|                                                                                                                    |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Benefits      and Expenses                                                                                              |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
|                                                                                                                    |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Interest      credited                                                                                                  |               | 360,300          |   |   | 32,861          |   |        | 23,987          |                |   | -  |   |   | 417,148  |
| Interest      expense                                                                                                   |               | 53,128           |   |   | (498)                |   |        | 33,503          |                |   | -  |   |   | 86,133  |
| Policyowner      benefits                                                                                               |               | 159,292          |   |   | 57,815          |   |        | 14,548          |                |   | -  |   |   | 231,655  |
| Amortization      of DAC, VOBA and VOCRA  (3)                                                                 |               | (516,743)             |   |   | (76,010)             |   |        | (214)                |                |   | -  |   |   | (592,967) |
|         Other operating expenses                                                                              |               | 168,018          |   |   | 34,008          |   |        | 21,645          |                |   | -  |   |   | 223,671  |
|                                                                                                                    |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Total      benefits and expenses                                                                                        |               | 223,995          |   |   | 48,176          |   |        | 93,469          |                |   | -  |   |   | 365,640  |
|                                                                                                                    |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Loss      before income tax benefit                                                                                     |               | (1,078,026)           |   |   | (45,999)             |   |        | (216,789)            |                |   | -  |   |   | (1,340,814) |
|                                                                                                                    |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Income      tax benefit                                                                                                 |               | (335,291)             |   |   | (4,846)              |   |        | (65,206)             |                |   | -  |   |   | (405,343) |
| Equity      in the net loss of subsidiaries                                                                             |               | (192,736)             |   |   | -               |   |        | -               |                |   | 192,736  |   |   | -  |
|                                                                                                                    |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Net      loss                                                                                                           | $                  | (935,471)             |   | $      | (41,153)             |   | $           | (151,583)            |                | $ | 192,736  |   | $ | (935,471) |

|   | (1)SLUS’,      SLNY’s and Other Subs’ net investment loss includes a decrease in market      value of trading fixed maturity securities of $1,420.7 million, $98.4      million and $156.9 million, respectively, for the nine-month period ended      September 30, 2008. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)SLUS’      and SLNY’s net derivative loss for the nine-month period ended September      30, 2008 includes $165.8 million and $0.3 million, respectively, of income      related to the Company’s adoption of FASB ASC Topic 820, which is further      discussed in Note 4. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3)SLUS’      and SLNY’s amortization of DAC, VOBA and VOCRA for the nine-month period      ended September 30, 2008 includes $3.0 million and $0.2 million,      respectively, of expenses related to the Company’s adoption of FASB ASC      Topic 820, which is further discussed in Note4. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                   | SLUSas      Parent |          | SLNY   |   | OtherSubs     |   | Elimination |          | ConsolidatedCompany |
|--------------------------------------------------------------------------------------------------------|--------------------|---------------|--------|--------|---------------|--------|-------------|---------------|---------------------|
|                                                                                                   |               |          |   |   |          |   |        |          |                |   |   |   |   |   |
| Revenues                                                                                               |               |          |   |   |          |   |        |          |                |   |   |   |   |   |
|                                                                                                   |               |          |   |   |          |   |        |          |                |   |   |   |   |   |
| Premiums      and annuity considerations                                                               | $                  | 5,656    |   | $      | 29,861   |   | $           | -        |                | $ | -  |   | $ | 35,517  |
| Net      investment income (1)                                                                         |               | 956,969  |   |   | 86,866   |   |        | 170,764  |                |   | -  |   |   | 1,214,599  |
| Net      derivative (loss) income                                                                      |               | (340,946)     |   |   | (5,585)       |   |        | 42,085   |                |   | -  |   |   | (304,446) |
| Net      realized investment losses, excluding impairment losses on      available-for-sale securities |               | (5,285)       |   |   | (41)          |   |        | (238)         |                |   |   -  |   |   | (5,564) |
| Other-than-temporary      impairment losses (2)                                                        |               | -        |   |   | -        |   |        | -        |                |   | -  |   |   | -  |
| Fee      and other income                                                                              |               | 118,994  |   |   | 2,629    |   |        | 82,856   |                |   | -  |   |   | 204,479  |
|                                                                                                   |               |          |   |   |          |   |        |          |                |   |   |   |   |   |
| Total      revenues                                                                                    |               | 735,388  |   |   | 113,730  |   |        | 295,467  |                |   | -  |   |   | 1,144,585  |
|                                                                                                   |               |          |   |   |          |   |        |          |                |   |   |   |   |   |
| Benefits      and Expenses                                                                             |               |          |   |   |          |   |        |          |                |   |   |   |   |   |
|                                                                                                   |               |          |   |   |          |   |        |          |                |   |   |   |   |   |
| Interest      credited                                                                                 |               | 57,928   |   |   | 9,097    |   |        | 8,545    |                |   | -  |   |   | 75,570  |
| Interest      expense                                                                                  |               | 8,275    |   |   | (32)          |   |        | 4,598    |                |   | -  |   |   | 12,841  |
| Policyowner      benefits                                                                              |               | (23,110)      |   |   | 20,899   |   |        | 25,744   |                |   | -  |   |   | 23,533  |
| Amortization      of DAC, VOBA and VOCRA                                                               |               | 56,032   |   |   | 62,216   |   |        | 28,043   |                |   | -  |   |   | 146,291  |
| Other      operating expenses                                                                          |               | 63,699   |   |   | 16,200   |   |        | 2,838    |                |   | -  |   |   | 82,737  |
|                                                                                                   |               |          |   |   |          |   |        |          |                |   |   |   |   |   |
| Total      benefits and expenses                                                                       |               | 162,824  |   |   | 108,380  |   |        | 69,768   |                |   | -  |   |   | 340,972  |
|                                                                                                   |               |          |   |   |          |   |        |          |                |   |   |   |   |   |
| Income  before      income tax expense                                                       |               | 572,564  |   |   | 5,350    |   |        | 225,699  |                |   | - |   |   | 803,613  |
|                                                                                                   |               |          |   |   |          |   |        |          |                |   |   |   |   |   |
| Income      tax expense (benefit)                                                                      |               | 116,984  |   |   | (3,518)       |   |        | 72,474   |                |   | - |   |   | 185,940  |
| Equity      in the net income of subsidiaries                                                          |               | 162,093  |   |   | -        |   |        | -        |                |   | (162,093) |   |   | -  |
|                                                                                                   |               |          |   |   |          |   |        |          |                |   |   |   |   |   |
| Net      income                                                                                        | $                  | 617,673  |   | $      | 8,868    |   | $           | 153,225  |                | $ | (162,093) |   | $ | 617,673  |

| (1)   | SLUS’,      SLNY’s and Other Subs’ net investment income includes an increase in      market value of trading fixed maturity securities of $880.7 million, $75.6      million and $110.7 million, respectively, for the three-month period ended      September 30, 2009. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | SLUS’,      SLNY’s and Other Subs’ OTTI losses for the three-month period ended      September 30, 2009 represent impairments related to credit      loss. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                      | SLUSas      Parent |                  | SLNY   |   | OtherSubs            |   | Elimination |                 | ConsolidatedCompany |
|---------------------------------------------------------------------------------------------------------------------------|--------------------|-----------------------|--------|--------|----------------------|--------|-------------|----------------------|---------------------|
|                                                                                                                      |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Revenues                                                                                                                  |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
|                                                                                                                      |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Premiums      and annuity considerations                                                                                  | $                  | 3,464            |   | $      | 26,725          |   | $           | -               |                | $ | -  |   | $ | 30,189  |
| Net      investment loss  (1)                                                                                   |               | (483,107)             |   |   | (43,549)             |   |        | (47,048)             |                |   | -  |   |   | (573,704) |
| Net      derivative loss                                                                                                  |               | (193,980)             |   |   | (5,545)              |   |        | (59,650)             |                |   | -  |   |   | (259,175) |
|          Net realized investment losses, excluding impairment losses on      available-for-sale securities |               |   (238,070) |   |   |   (29,172) |   |        |   (29,542) |                |   |   -  |   |   |   (296,784) |
| Other-than-temporary      impairment losses                                                                               |               | (11,278)              |   |   | (5,117)              |   |        | (1,869)              |                |   | -  |   |   | (18,264) |
| Fee      and other income                                                                                                 |               | 110,397          |   |   | 3,856           |   |        | 10,073          |                |   | -  |   |   | 124,326  |
|                                                                                                                      |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Total      revenues                                                                                                       |               | (812,574)             |   |   | (52,802)             |   |        | (128,036)            |                |   | -  |   |   | (993,412) |
|                                                                                                                      |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Benefits      and Expenses                                                                                                |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
|                                                                                                                      |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Interest      credited                                                                                                    |               | 113,416          |   |   | 11,592          |   |        | 8,137           |                |   | -  |   |   | 133,145  |
| Interest      expense                                                                                                     |               | 19,478           |   |   | (37)                 |   |        | 10,144          |                |   | -  |   |   | 29,585  |
| Policyowner      benefits                                                                                                 |               | 78,719           |   |   | 20,499          |   |        | 4,272           |                |   | -  |   |   | 103,490  |
| Amortization      of DAC, VOBA and VOCRA                                                                                  |               | (239,817)             |   |   | (61,628)             |   |        | 3,387           |                |   | -  |   |   | (298,058) |
| Other      operating expenses                                                                                             |               | 45,083           |   |   | 10,503          |   |        | 6,683           |                |   | -  |   |   | 62,269  |
|                                                                                                                      |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Total      benefits and expenses                                                                                          |               | 16,879           |   |   | (19,071)             |   |        | 32,623          |                |   | -  |   |   | 30,431  |
|                                                                                                                      |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Loss      before income tax benefit                                                                                       |               | (829,453)             |   |   | (33,731)             |   |        | (160,659)            |                |   | -  |   |   | (1,023,843) |
|                                                                                                                      |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Income      tax benefit                                                                                                   |               | (228,891)             |   |   | (149)                |   |        | (45,466)             |                |   | -  |   |   | (274,506) |
| Equity      in the net loss of subsidiaries                                                                               |               | (148,775)             |   |   | -               |   |        | -               |                |   | 148,775  |   |   | -  |
|                                                                                                                      |               |                  |   |   |                 |   |        |                 |                |   |   |   |   |   |
| Net      loss                                                                                                             | $                  | (749,337)             |   | $      | (33,582)             |   | $           | (115,193)            |                | $ | 148,775  |   | $ | (749,337) |

| (1)   | SLUS’,      SLNY’s and Other Subs’ net investment loss includes a decrease in market      value of trading fixed maturity securities of $712.0 million, $61.9      million and $98.0 million, respectively, for the three-month period ended      September 30, 2008. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                           | SLUSas      Parent |             | SLNY   |   | OtherSubs       |   | Elimination |            | ConsolidatedCompany |
|----------------------------------------------------------------|--------------------|------------------|--------|--------|-----------------|--------|-------------|-----------------|---------------------|
| ASSETS                                                         |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Investments                                                    |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Available-for-sale      fixed maturities at fair value         | $                  | 1,000,920   |   | $      | 180,881    |   | $           | 56,321     |                | $ | -  |   | $ | 1,238,122  |
| Trading      fixed maturities at fair value                    |               | 10,163,408  |   |   | 1,354,553  |   |        | 1,263,417  |                |   | -  |   |   | 12,781,378  |
| Investment      in subsidiaries                                |               | 750,650     |   |   | -          |   |        | -          |                |   | (750,650) |   |   | -  |
| Mortgage      loans                                            |               | 1,791,297   |   |   | 166,511    |   |        | 17,654     |                |   | -  |   |   | 1,975,462  |
| Derivative      instruments – receivable                 |               | 337,494     |   |   | -          |   |        | -          |                |   | -  |   |   | 337,494  |
| Limited      partnerships                                      |               | 50,236      |   |   | -          |   |        | -          |                |   | -  |   |   | 50,236  |
| Real      estate                                               |               | 155,948     |   |   | -          |   |        | 44,111     |                |   | -  |   |   | 200,059  |
| Policy      loans                                              |               | 696,983     |   |   | 208        |   |        | 22,237     |                |   | -  |   |   | 719,428  |
| Other      invested assets                                     |               | 40,448      |   |   | 74         |   |        | -          |                |   | -  |   |   | 40,522  |
| Cash      and cash equivalents                                 |               | 2,377,436   |   |   | 267,928    |   |        | 376,842    |                |   | -  |   |   | 3,022,206  |
| Total      investments and cash                                |               | 17,364,820  |   |   | 1,970,155  |   |        | 1,780,582  |                |   | (750,650) |   |   | 20,364,907  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Accrued      investment income                                 |               | 201,317     |   |   | 15,648     |   |        | 16,691     |                |   | -  |   |   | 233,656  |
| Deferred      policy acquisition costs                         |               | 2,410,536   |   |   | 192,104    |   |        | 104,514    |                |   | -  |   |   | 2,707,154  |
| Value      of business and customer renewals acquired          |               | 157,515     |   |   | 9,075      |   |        | -          |                |   | -  |   |   | 166,590  |
| Net      deferred tax asset                                    |               | 556,674     |   |   | -          |   |        | -          |                |   | (192,442) |   |   | 364,232  |
| Goodwill                                                       |               | -           |   |   | 7,299      |   |        | -          |                |   | -  |   |   | 7,299  |
| Receivable      for investments sold                           |               | 23,373      |   |   | 1,861      |   |        | 139        |                |   | -  |   |   | 25,373  |
| Reinsurance      receivable                                    |               | 2,170,381   |   |   | 124,745    |   |        | 949,722    |                |   | -  |   |   | 3,244,848  |
| Other      assets                                              |               | 198,180     |   |   | 41,695     |   |        | 1,839      |                |   | -  |   |   | 241,714  |
| Separate      account assets                                   |               | 21,506,502  |   |   | 924,326    |   |        | 41,498     |                |   | -  |   |   | 22,472,326  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Total      assets                                              | $                  | 44,589,298  |   | $      | 3,286,908  |   | $           | 2,894,985  |                | $ | (943,092) |   | $ | 49,828,099 |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| LIABILITIES                                                    |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Contractholder      deposit funds and other policy liabilities | $                  | 15,355,960  |   | $      | 1,619,431  |   | $           | 802,752    |                | $ | - |   | $ | 17,778,143  |
| Future      contract and policy benefits                       |               | 732,492     |   |   | 97,465     |   |        | 102,398    |                |   | -  |   |   | 932,355  |
| Payable      for investments purchased                         |               | 88,542      |   |   | 108        |   |        | 2,656      |                |   | -  |   |   | 91,306  |
| Accrued      expenses and taxes                                |               | 141,786     |   |   | (11,518)        |   |        | 26,481     |                |   | -  |   |   | 156,749  |
| Deferred      tax liability                                    |               | -           |   |   | 9,603      |   |        | 182,839    |                |   | (192,442) |   |   | -  |
| Debt      payable to affiliates                                |               | 883,000     |   |   | -          |   |        | 1,215,000  |                |   | -  |   |   | 2,098,000  |
| Reinsurance      payable                                       |               | 1,930,898   |   |   | 172,235    |   |        | 1,054      |                |   | -  |   |   | 2,104,187  |
| Derivative      instruments – payable                    |               | 712,910     |   |   | -          |   |        | 65,213     |                |   | -  |   |   | 778,123  |
| Other      liabilities                                         |               | 464,376     |   |   | 59,503     |   |        | 120,199    |                |   | -  |   |   | 644,078  |
| Separate      account liabilities                              |               | 21,506,502  |   |   | 924,326    |   |        | 41,498     |                |   | -  |   |   | 22,472,326  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Total      liabilities                                         |               | 41,816,466  |   |   | 2,871,153  |   |        | 2,560,090  |                |   | (192,442) |   |   | 47,055,267  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| STOCKHOLDER’S      EQUITY                                |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Common      stock                                              | $                  | 6,437       |   | $      | 2,100      |   | $           | 2,542      |                | $ | (4,642) |   | $ | 6,437  |
| Additional      paid-in capital                                |               | 3,621,022   |   |   | 389,963    |   |        | 268,659    |                |   | (658,622) |   |   | 3,621,022 |
| Accumulated      other comprehensive (loss) income             |               | (18,822)         |   |   | (2,749)         |   |        | 714        |                |   | 2,035  |   |   | (18,822) |
| Accumulated      (deficit) earnings                            |               | (835,805)        |   |   | 26,441     |   |        | 62,980     |                |   | (89,421) |   |   | (835,805) |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Total      stockholder’s equity                          |               | 2,772,832   |   |   | 415,755    |   |        | 334,895         |                |   | (750,650) |   |   | 2,772,832  |
|                                                           |               |             |   |   |            |   |        |            |                |   |   |   |   |   |
| Total      liabilities and stockholder’s equity          | $                  | 44,589,298  |   | $      | 3,286,908  |   | $           | 2,894,985  |                | $ | (943,092) |   | $ | 49,828,099  |

----

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

----

|                                                                                                  | SLUSas      Parent |            | SLNY   |   | OtherSubs     |   | Elimination |          | ConsolidatedCompany |
|-------------------------------------------------------------------------------------------------------|--------------------|-----------------|--------|--------|---------------|--------|-------------|---------------|---------------------|
|                                                                                                  |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Cash      Flows From Operating Activities:                                                            |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Net      income                                                                                       | $                  | 1,108,597  |   | $      | 67,238   |   | $           | 149,073  |                | $ | (216,311) |   | $ | 1,108,597  |
| Adjustments      to reconcile net income to net cash provided by (used in) operating      activities: |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Net      amortization of premiums on investments                                                      |               | 7,724      |   |   | 212      |   |        | (1,832)       |                |   | -  |   |   | 6,104  |
| Amortization      of DAC, VOBA and VOCRA                                                              |               | 434,372    |   |   | 85,696   |   |        | (4,889)       |                |   | -  |   |   | 515,179  |
| Depreciation      and amortization                                                                    |               | 3,447      |   |   | 233      |   |        | 603      |                |   | -  |   |   | 4,283  |
| Net      loss (gain) on derivatives                                                                   |               | 97,978     |   |   | (5,278)       |   |        | (191,801)     |                |   | -  |   |   | (99,101) |
| Net      realized losses and OTTI credit losses onavailable-for-sale      investments                 |               | 12,127     |   |   | 178      |   |        | 930      |                |   | -  |   |   | 13,235  |
| Changes      in fair value of trading investments                                                     |               | (1,724,398)     |   |   | (168,863)     |   |        | (151,624)     |                |   | -  |   |   | (2,044,885) |
| Net      realized losses (gains) on trading investments                                               |               | 257,385    |   |   | 10,751   |   |        | (25)          |                |   | -  |   |   | 268,111  |
| Undistributed      loss on private equity limitedpartnerships                                         |               | 11,477     |   |   | -        |   |        | -        |                |   | -  |   |   | 11,477  |
| Interest      credited to contractholder deposits                                                     |               | 255,942    |   |   | 35,261   |   |        | 26,352   |                |   | -  |   |   | 317,555  |
| Deferred      federal income taxes                                                                    |               | 302,403    |   |   | 21,532   |   |        | 103,955  |                |   | -  |   |   | 427,890  |
| Equity      in net income of subsidiaries                                                             |               | (216,311)       |   |   | -        |   |        | -        |                |   | 216,311  |   |   | -  |
| Changes      in assets and liabilities:                                                               |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Additions      to DAC, VOBA and VOCRA                                                                 |               | (242,545)       |   |   | (37,282)      |   |        | (25,667)      |                |   | -  |   |   | (305,494) |
| Accrued      investment income                                                                        |               | 48,853     |   |   | (422)         |   |        | 477      |                |   | -  |   |   | 48,908  |
| Net      change in reinsurance receivable/payable                                                     |               | 108,502    |   |   | (7,844)       |   |        | 172,284  |                |   | -  |   |   | 272,942  |
| Future      contract and policy benefits                                                              |               | (114,736)       |   |   | 3,490    |   |        | 28,913   |                |   | -  |   |   | (82,333) |
| Other,      net                                                                                       |               | 36,786     |   |   | (147,857)     |   |        | 36,802   |                |   | -  |   |   | (74,269) |
|                                                                                                  |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Net      cash provided by (used in) operating activities                                              |               | 387,603    |   |   | (142,955)     |   |        | 143,551  |                |   | -  |   |   | 388,199  |
|                                                                                                  |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Cash      Flows From Investing Activities:                                                            |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Sales,      maturities and repayments of:                                                             |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Available-for-sale      fixed maturities                                                              |               | 34,569     |   |   | 4,102    |   |        | 1,435    |                |   | -  |   |   | 40,106  |
| Trading      fixed maturities                                                                         |               | 965,384    |   |   | 209,827  |   |        | 27,957   |                |   | -  |   |   | 1,203,168  |
| Mortgage      loans                                                                                   |               | 119,355    |   |   | 7,503    |   |        | (36)          |                |   | (18,357) |   |   | 108,465  |
| Other      invested assets                                                                            |               | (125,692)       |   |   | 1,587    |   |        | -        |                |   | -  |   |   | (124,105) |
| Purchases      of:                                                                                    |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Available-for-sale      fixed maturities                                                              |               | (333,234)       |   |   | (3,578)       |   |        | (311)         |                |   | -  |   |   | (337,123) |
| Trading      fixed maturities                                                                         |               | (50,392)        |   |   | (419,107)     |   |        | (1,634)       |                |   | -  |   |   | (471,133) |
| Mortgage      loans                                                                                   |               | (9,902)         |   |   | (2,125)       |   |        | (18,389)      |                |   | 18,357  |   |   | (12,059) |
| Real      estate                                                                                      |               | (904)           |   |   | -        |   |        | (647)         |                |   | -  |   |   | (1,551) |
| Other      invested assets                                                                            |               | (97,908)        |   |   | (15)          |   |        | -        |                |   | -  |   |   | (97,923) |
| Net      change in other investments                                                                  |               | (109,307)       |   |   | 8,831    |   |        | -        |                |   | -  |   |   | (100,476) |
| Net      change in policy loans                                                                       |               | 7,565      |   |   | (52)          |   |        | 2,466    |                |   | -  |   |   | 9,979  |
|                                                                                                  |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Net      cash provided by (used in) investing activities                                              | $                  | 399,534    |   | $      | (193,027)     |   | $           | 10,841   |                | $ | -  |   | $ | 217,348  |

----

|                                                | SLUSas      Parent |            | SLNY   |   | OtherSubs     |   | Elimination |          | ConsolidatedCompany |
|-----------------------------------------------------|--------------------|-----------------|--------|--------|---------------|--------|-------------|---------------|---------------------|
|                                                |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Cash      Flows From Financing Activities:          |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Additions      to contractholder deposit funds      | $                  | 1,859,301  |   | $      | 416,555  |   | $           | 26,211   |                | $ | -  |   | $ | 2,302,067  |
| Withdrawals      from contractholder deposit funds  |               | (2,123,945)     |   |   | (183,188)     |   |        | (6,526)       |                |   | -  |   |   | (2,313,659) |
| Capital      contribution to subsidiaries           |               | (58,910)        |   |   | -        |   |        | -        |                |   | 58,910  |   |   | -  |
| Capital      contribution from Parent               |               | 748,652    |   |   | -        |   |        | 58,910   |                |   | (58,910) |   |   | 748,652  |
| Debt      proceeds                                  |               | -          |   |   | -        |   |        | 100,000  |                |   | -  |   |   | 100,000  |
| Other,      net                                     |               | (37,135)        |   |   | (7,415)       |   |        | -        |                |   | -  |   |   | (44,550) |
|                                                |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Net      cash provided by financing activities      |               | 387,963    |   |   | 225,952  |   |        | 178,595  |                |   | -  |   |   | 792,510  |
|                                                |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Net      change in cash and cash equivalents        |               | 1,175,100  |   |   | (110,030)     |   |        | 332,987  |                |   | -  |   |   | 1,398,057  |
|                                                |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period |               | 1,202,336  |   |   | 377,958  |   |        | 43,855   |                |   | -  |   |   | 1,624,149  |
|                                                |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Cash      and cash equivalents, end of period       | $                  | 2,377,436  |   | $      | 267,928  |   | $           | 376,842  |                | $ | -  |   | $ | 3,022,206  |
|                                                |               |            |   |   |          |   |        |          |                |   |   |   |   |   |

----

|                                                                                               | SLUSas      Parent |            | SLNY   |   | OtherSubs     |   | Elimination |          | ConsolidatedCompany |
|----------------------------------------------------------------------------------------------------|--------------------|-----------------|--------|--------|---------------|--------|-------------|---------------|---------------------|
|                                                                                               |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Cash      Flows From Operating Activities:                                                         |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Net      loss                                                                                      | $                  | (935,471)       |   | $      | (41,153)      |   | $           | (151,583)     |                | $ | 192,736  |   | $ | (935,471) |
| Adjustments      to reconcile net loss to net cashprovided      by (used in) operating activities: |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Net      amortization of premiums on investments                                                   |               | 16,334     |   |   | 2,460    |   |        | (930)         |                |   | -  |   |   | 17,864  |
| Amortization      of DAC, VOBA and VOCRA                                                           |               | (516,742)       |   |   | (76,011)      |   |        | (214)         |                |   | -  |   |   | (592,967) |
| Depreciation      and amortization                                                                 |               | 4,079      |   |   | 233      |   |        | 640      |                |   | -  |   |   | 4,952 |
| Net      loss on derivatives                                                                       |               | 137,665    |   |   | 7,533    |   |        | 78,071   |                |   | -  |   |   | 223,269  |
| Net      realized losses on available-for-sale investments                                         |               | 6,573      |   |   | 4,812    |   |        | 2,024    |                |   | -  |   |   | 13,409  |
| Changes      in fair value of trading investments                                                  |               | 1,420,662  |   |   | 98,448   |   |        | 156,929  |                |   | -  |   |   | 1,676,039  |
| Net      realized losses on trading investments                                                    |               | 268,678    |   |   | 30,182   |   |        | 25,989        |                |   | -  |   |   | 324,849  |
| Undistributed      loss on private equity limitedpartnerships                                      |               | 4,919      |   |   | -        |   |        | -        |                |   | -  |   |   | 4,919  |
| Interest      credited to contractholder deposits                                                  |               | 360,300    |   |   | 32,861   |   |        | 23,987   |                |   | -  |   |   | 417,148  |
| Deferred      federal income taxes                                                                 |               | (318,131)       |   |   | (4,875)       |   |        | (27,709)      |                |   | -  |   |   | (350,715) |
| Equity      in net loss of subsidiaries                                                            |               | 192,736    |   |   | -        |   |        | -        |                |   | (192,736) |   |   | -  |
| Changes      in assets and liabilities:                                                            |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Additions      to DAC, VOBA and VOCRA                                                              |               | (192,632)       |   |   | (21,978)      |   |        | (58,579)      |                |   | -  |   |   | (273,189) |
| Accrued      investment income                                                                     |               | 55,277     |   |   | (215)         |   |        | (11,596)      |                |   | -  |   |   | 43,466  |
| Net      change in reinsurance receivable/payable                                                  |               | 137,859    |   |   | 62,170   |   |        | (200,705)     |                |   | -  |   |   | (676) |
| Future      contract and policy benefits                                                           |               | 49,187     |   |   | (4,125)       |   |        | 13,553   |                |   | -  |   |   | 58,615  |
| Other,      net                                                                                    |               | 36,197     |   |   | (437)         |   |        | 100,214  |                |   | -  |   |   | 135,974  |
|                                                                                               |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Net      cash provided by (used in) operating activities                                           |               | 727,490    |   |   | 89,905   |   |        | (49,909)      |                |   | -  |   |   | 767,486  |
|                                                                                               |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Cash      Flows From Investing Activities:                                                         |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Sales,      maturities and repayments of:                                                          |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Available-for-sale      fixed maturities                                                           |               | 78,581     |   |   | 5,956    |   |        | 4,888    |                |   | -  |   |   | 89,425  |
| Trading      fixed maturities                                                                      |               | 1,115,703  |   |   | 179,748  |   |        | 216,932  |                |   | -  |   |   | 1,512,383  |
| Mortgages      loans                                                                               |               | 233,030    |   |   | 7,143    |   |        | 20,672   |                |   | -  |   |   | 260,845  |
| Real      estate                                                                                   |               | 1,160      |   |   | -        |   |        | -        |                |   | -  |   |   | 1,160  |
| Other      invested assets                                                                         |               | 231,748    |   |   | 27,225   |   |        | -        |                |   | -  |   |   | 258,973  |
| Purchases      of:                                                                                 |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Available-for-sale      fixed maturities                                                           |               | (46,363)   |   |   | (14,027)      |   |        | (7,737)       |                |   | -  |   |   | (68,127)  |
| Trading      fixed maturities                                                                      |               | (710,344)       |   |   | (256,338)     |   |        | (848,805)     |                |   | -  |   |   | (1,815,487) |
| Mortgage      loans                                                                                |               | (23,096)        |   |   | (11,150)      |   |        | (19,000)      |                |   | -  |   |   | (53,246) |
| Real      estate                                                                                   |               | (3,861)         |   |   | -        |   |        | (303)         |                |   | -  |   |   | (4,164) |
| Other      invested assets                                                                         |               | (79,977)        |   |   | -        |   |        | -        |                |   | -  |   |   | (79,977) |
| Net      change in other investments                                                               |               | (232,971)       |   |   | (27,225)      |   |        | -        |                |   | -  |   |   | (260,196) |
| Net      change in policy loans                                                                    |               | (9,049)         |   |   | (57)          |   |        | 1,300    |                |   | -  |   |   | (7,806) |
|                                                                                               |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Net      cash provided by (used in) investing activities                                           | $                  | 554,561    |   | $      | (88,725)      |   | $           | (632,053)     |                | $ | -  |   | $ | (166,217) |

----

|                                                     | SLUSas      Parent |            | SLNY   |   | OtherSubs     |   | Elimination |          | ConsolidatedCompany |
|----------------------------------------------------------|--------------------|-----------------|--------|--------|---------------|--------|-------------|---------------|---------------------|
|                                                     |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Cash      Flows From Financing Activities:               |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Additions      to contractholder deposit funds           | $                  | 1,369,898  |   | $      | 285,681  |   | $           | 89,500   |                | $ | -  |   | $ | 1,745,079  |
| Withdrawals      from contractholder deposit funds       |               | (2,448,372)     |   |   | (260,019)     |   |        | (4,667)       |                |   | -  |   |   | (2,713,058) |
| Capital      contribution from Parent                    |               | 300,000         |   |   | -        |   |        | -        |                |   | -  |   |   | 300,000 |
| Debt      proceeds                                       |               | 60,000     |   |   | -        |   |        | 115,000  |                |   | -  |   |   | 175,000  |
| Other,      net                                          |               | (21,298)        |   |   | (8,450)       |   |        | (12)          |                |   | -  |   |   | (29,760) |
|                                                     |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Net      cash (used in) provided by financing activities |               | (739,772)       |   |   | 17,212   |   |        | 199,821       |                |   | -  |   |   | (522,739) |
|                                                     |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Net      change in cash and cash equivalents             |               | 542,279    |   |   | 18,392        |   |        | (482,141)     |                |   | -  |   |   | 78,530  |
|                                                     |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period      |               | 415,494    |   |   | 65,901   |   |        | 688,306  |                |   | -  |   |   | 1,169,701  |
|                                                     |               |            |   |   |          |   |        |          |                |   |   |   |   |   |
| Cash      and cash equivalents, end of period            | $                  | 957,773    |   | $      | 84,293   |   | $           | 206,165  |                | $ | -  |   | $ | 1,248,231  |
|                                                     |               |            |   |   |          |   |        |          |                |   |   |   |   |   |

----

----

----

----

|                                                                                                | Nine-month      periods ended September 30,                                                                                                        |
|-----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                | 2009                                                                                                                                               | 2008 |
|                                                                                                |                                                                                                                                               |   |
| Net      expense on swap agreements                                                                 | $                      (76,507)      | $                      (42,294) |
| Change      in fair value of swap agreements        (interest rate, currency, and equity) | 297,918                                                                                                                                            | (130,840) |
| Change      in fair value of options, futures and        embedded derivatives             | (224,267)                                                                                                                                          | (99,914) |
|                                                                                                |                                                                                                                                               |   |
| Net      derivative loss                                                                            | $                       (2,856) | $                    (273,048) |

----

----

----

----

----

----

|                                                                                                                                | 2009      |    | 2008        |
|-------------------------------------------------------------------------------------------------------------------------------------|-----------|---------|-------------|
| Revenues                                                                                                                            |      |    |        |
|                                                                                                                                |      |    |        |
| Premiums      and annuity considerations                                                                                            | $         | 10,754  |        | $ | 12,650 |
| Net      investment income (loss)                                                                                                   | 2,202,559 |    | (827,537)   |
| Net      derivative loss                                                                                                            | (144,967) |    | (189,574)   |
| Net      realized investment losses, excluding        impairment losses on available-for-sale        securities | (11,034)  |    | (259,039)   |
| Other-than-temporary      impairment losses                                                                                         | (203)     |    | (1,869)     |
| Fee      and other income                                                                                                           | 250,940   |    | 279,687     |
|                                                                                                                                |      |    |        |
| Total      revenues                                                                                                                 | 2,308,049 |    | (985,682)   |
|                                                                                                                                |      |    |        |
| Benefits      and Expenses                                                                                                          |      |    |        |
|                                                                                                                                |      |    |        |
| Interest      credited                                                                                                              | 287,677   |    | 379,747     |
| Interest      expense                                                                                                               | 25,517    |    | 31,825      |
| Policyowner      benefits                                                                                                           | 34,403    |    | 158,887     |
| Amortization      of DAC, VOBA and VOCRA                                                                                            | 508,704   |    | (592,816)   |
| Other      operating expenses                                                                                                       | 120,376   |    | 109,323     |
|                                                                                                                                |      |    |        |
| Total      benefits and expenses                                                                                                    | 976,677   |    | 86,966      |
|                                                                                                                                |      |    |        |
| Income      (loss) before income tax expensebenefit)                                                                                | 1,331,372 |    | (1,072,648) |
|                                                                                                                                |      |    |        |
| Income      tax expense (benefit)                                                                                                   | 451,813   |    | (398,571)   |
|                                                                                                                                |      |    |        |
| Net      income (loss)                                                                                                              | $         | 879,559 |        | $ | (674,077) |

----

|                                                                                                      | Nine-month      periods ended September 30,                                                                                             |
|-----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                      | 2009                                                                                                                                    | 2008 |
|                                                                                                      |                                                                                                                                    |   |
| Net      expense on swap agreements                                                                       | $                     (65,160) | $                        (39,288) |
| Change      in fair value of swap agreements         (interest rate, currency, and equity) | 197,419                                                                                                                                 | (113,655) |
| Change      in fair value of options, futures andembedded      derivatives                                | (277,226)                                                                                                                               | (36,631) |
|                                                                                                      |                                                                                                                                    |   |
| Net      derivative loss                                                                                  | $                   (144,967)            | $                      (189,574) |

----

----

----

|                                                                                | 2009   |          | 2008   |
|-------------------------------------------------------------------------------------|--------|---------------|--------|
|                                                                                |   |          |   |   |   |
| Total      revenues                                                                 | $      | 344,538  |   | $ | (57,996) |
| Total      benefits and expenses                                                    |   | 107,735  |   |   | 176,224  |
| Income      (loss) before income tax          expense (benefit) |   | 236,803  |   |   | (234,220) |
|                                                                                |   |          |   |   |   |
| Net      income (loss)                                                              | $      | 154,027  |   | $ | (152,138) |

----

|                                                                                | 2009   |          | 2008   |
|-------------------------------------------------------------------------------------|--------|---------------|--------|
|                                                                                |   |          |   |   |   |
| Total      revenues                                                                 | $      | 104,252  |   | $ | 75,880  |
| Total      benefits and expenses                                                    |   | 86,051   |   |   | 78,173  |
| Income      (loss) before income tax          expense (benefit) |   | 18,201   |   |   | (2,293) |
| Net      income (loss)                                                              | $      | 11,830   |   | $ | (1,491) |

----

|                                                                       | 2009   |     | 2008   |
|----------------------------------------------------------------------------|--------|----------|--------|
|                                                                       |   |     |   |   |   |
| Total      revenues                                                        | $      | (11,177) |   | $ | (7,376) |
| Total      benefits and expenses                                           |   | 15,913   |   |   | 24,277 |
| Loss      before income tax (benefit)          expense |   | (27,090) |   |   | (31,653) |
|                                                                       |   |     |   |   |   |
| Net      income (loss)                                                     | $      | 63,181   |   | $ | (107,765) |

----

----

----

| 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) |
|--------|--------------------------------------------------------------|

| November 12,      2009 | /s/ Westley V.      Thompson                  |
|------------------------|-----------------------------------------------|
| Date                   | Westley      V. Thompson, President, SLF U.S. |
|                   | (principal      executive officer)            |

| November 12,      2009 | /s/ Ronald H.      Friesen                                                    |
|------------------------|-------------------------------------------------------------------------------|
| Date                   | Ronald      H. Friesen , Senior Vice President and Chief Financial    Officer |
|                   | (principal      financial officer)                                            |

----